[Federal Register Volume 60, Number 157 (Tuesday, August 15, 1995)]
[Notices]
[Pages 42156-42157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20150]



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DEPARTMENT OF ENERGY
Southeastern Power Administration
[Rate Order No. SEPA-34]


Jim Woodruff Project

AGENCY: Southeastern Power Administration (Southeastern), DOE.

ACTION: Notice.

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SUMMARY: On August 8, 1995, the Deputy Secretary, U. S. Department of 
Energy, confirmed and approved, on an interim basis, Rate Schedules JW-
1-E and JW-2-B for the Jim Woodruff Project's power. The rates were 
approved on an interim basis through September 19, 2000, and are 
subject to confirmation and approval by the Federal Regulatory 
Commission on a final basis.

DATES: Approval of rates on an interim basis is effective September 20, 
1995.

FOR FURTHER INFORMATION CONTACT: E. B. Crenshaw, Acting Assistant 
Administrator, Finance and Marketing, Southeastern Power 
Administration, Department of Energy, Samuel Elbert Building, Elberton, 
Georgia 30635.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission 
(FERC) by Order issued September 6, 1994, in Docket No. EF94-3031-000, 
confirmed and approved Wholesale Power Rate Schedule JW-1-D through 
September 19, 1995. By Order issued July 16, 1991, the FERC approved 
Rate Schedule JW-2-B through September 19, 1995. Rate Schedule JW-1-E 
replaces Rate Schedule JW-1-D. Rate Schedule JW-2-B is to be extended 
to September 19, 2000.

 
[[Page 42157]]

    Issued in Washington, D.C., August 8, 1995.
Bill White,
Deputy Secretary.

Order Confirming and Approving Power Parts on an Interim basis

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern 
Power Administration (Southeastern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 0204-108, effective 
May 30, 1986, 51 FR 19744 (May 30, 1986), the Secretary of Energy 
delegated to the Administrator the authority to develop power and 
transmission rates, and delegated to the Under Secretary the authority 
to confirm, approve, and place in effect such rates on an interim basis 
and delegated to the Federal Energy Regulatory Commission (FERC) the 
authority to confirm and approve on a final basis or to disapprove 
rates developed by the Administrator under the delegation. On November 
4, 1993, the Secretary of Energy issued Amendment No. 3 to Delegation 
Order No. 0204-108, granting the Deputy Secretary authority to confirm, 
approve, and place into effect Southeastern's rates on an interim 
basis. This rate order is issued by the Deputy Secretary pursuant to 
said notice.

Background

    Power from the Jim Woodruff Project is presently sold under 
Wholesale Power Rate Schedules JW-1-D and JW-2-B. Rate Schedule JW-2-B 
was approved by the FERC on July 16, 1991, for a period ending 
September 19, 1995 (56 FERC 62035).1 Rate Schedule JW-1-D was 
approved by the FERC on September 6, 1994, (68 FERC 62216) for a period 
ending September 19, 1995.2

     1 Rate Schedule JW-2-B was the rate for non-firm energy sold to 
the Florida Power Corporation.
     2 Rate Schedule JW-1-D was the modification of preference 
customer firm power rate previously approved by FERC to remain in 
effect through September 19, 1995. The previously approved rate 
would have increased over a five-year period from $2.70 to $5.94/kw 
month of contract demand and from 8 mills to 17.6 mills/kwh of 
associated energy. The Rate Schedule JW-1-D approved by FERC on 
September 6, 1994, established a rate of $5.40/kw month of contract 
demand and 16 mills per kwh for associated energy through September 
19, 1995.
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Public Notice and Comment
    Southeastern prepared a Power Repayment Study dated February 1995 
for the Jim Woodruff Project which showed that revenues at current 
rates were more than adequate to meet repayment criteria, with a 
reserve of about seven percent. On February 7, 1995, by Federal 
Register Notice 60 F.R. 7181, Southeastern proposed to extend the 
current Rate Schedules five years, to September 19, 2000. The Notice 
also announced a Public Information and Comment Forum to be held March 
23, 1995, in Tallahassee, Florida, with a deadline for written comments 
of May 12, 1995. The Public Information and Comment Forum was canceled 
after no interested party expressed an intention to attend. 
Southeastern received one written comment from one party representing 
the six preference customers. The preference customers requested a rate 
reduction of about five percent.
    Southeastern prepared a revised repayment study with the requested 
reduction to preference customers in May of 1995, which included a 
reserve of about two and one-half percent. Southeastern generally 
includes a reserve of one to three percent in its rates. Even with a 
rate reduction of about five percent to preference customers, the 
repayment study meets repayment criteria with a reserve of about two 
and one-half percent. Southeastern is proposing Rate Schedule JW-1-E, 
which includes the requested reduction, to replace Rate Schedule JW-1-
D. Rate Schedule JW-1-E establishes a charge of $5.13/kw/month for 
capacity and 15.2 mills/kwh for energy. Rate Schedule JW-2-B, which is 
a formula rate to Florida Power Corporation, is to be extended. Under 
this rate, Florida Power pays 60 percent of their avoided fuel cost. 
These rate schedules are to be in effect from September 20, 1995, to 
September 19, 2000.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in May 1995, for the Jim Woodruff Project, shows that 
with the proposed rates, all system power costs are paid within the 50-
year repayment period required by existing law and DOE Procedure RA 
6120.2. The Acting Administrator of Southeastern has certified that the 
rates are consistent with applicable law and that they are the lowest 
possible rates to customers consistent with sound business principles.

Environmental Impact

    Southeastern has reviewed the possible environmental impacts of the 
rate adjustment under consideration and has concluded that, because the 
adjusted rates would not significantly affect the quality of the human 
environment within the meaning of the National Environmental Policy Act 
of 1969, the proposed action is not a major Federal action for which 
preparation of an Environmental Impact Statement is required.

Availability of Information

    Information regarding these rates, including studies, and other 
supporting materials is available for public review in the offices of 
Southeastern Power Administration, Samuel Elbert Building, Elberton, 
Georgia 30635, and in the Power Marketing Liaison Office, James 
Forrestal Building, 1000 Independence Avenue, S.W., Washington, D. C. 
20585.

Submission to the Federal Energy Regulatory Commission

    The rates hereinafter confirmed and approved on an interim basis, 
together with supporting documents, will be submitted promptly to the 
Federal Energy Regulatory Commission for confirmation and approval on a 
final basis for a period beginning September 20, 1995, and ending no 
later than September 19, 2000.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective September 20, 1995, attached Wholesale Power 
Rate Schedules JW-1-E and JW-2-B. The rate schedules shall remain in 
effect on an interim basis through September 19, 2000, unless such 
period is extended or until the FERC confirms and approves them or 
substitute rate schedules on a final basis.

    Issued in Washington, D.C., this 8th day of August.
Bill White,
Deputy Secretary.
[FR Doc. 95-20150 Filed 8-14-95; 8:45 am]
BILLING CODE 6450-01-P