[Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
[Notices]
[Pages 42559-42560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20283]



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DEPARTMENT OF ENERGY
Southwestern Power Administration


Integrated System Power Rates; Notice of Order Approving an 
Extension of Power Rates on an Interim Basis

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of an Extension of Power Rates-Integrated System.

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SUMMARY: The Deputy Secretary of Energy, acting under Amendment No. 3 
to Delegation Order No. 0204-108, dated November 10, 1993, 58 FR 59717, 
and pursuant to the implementation authorities in 10 CFR 903.22(h) and 
903.23(a)(3), has approved Rate Order No. SWPA-32 which extends the 
existing power rates for the Integrated System. This is an interim rate 
action effective October 1, 1995, and extending for a period of one 
year through September 30, 1996.

FOR FURTHER INFORMATION CONTACT: George C. Grisaffe, Assistant 
Administrator, Office of Administration and Rates, Southwestern Power 
Administration, Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 
74101, (918) 581-7419.

SUPPLEMENTARY INFORMATION: The existing rate schedules for the 
Integrated System were approved on a final basis by the Federal Energy 
Regulatory Commission on September 18, 1991, for the period ending 
September 30, 1994.
    These rates were extended on an interim basis (through September 
30, 1995) by the Deputy Secretary of Energy on August 24, 1994. On June 
15, 1995, the Southwestern Power Administration (Southwestern) 
published notice in the Federal Register, 60 FR 31464, of its intention 
to seek a one-year extension of the existing power rate for the 
Integrated System and provided for a 15-day comment period. No comments 
were received. 10 CFR 903.22(h) and 903.23(a)(3) provide implementation 
authority for such interim extension to the Deputy Secretary.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved, Rate Order No. SWPA-32, on August 8, 1995, which 
extends the existing Integrated System rates for one year beginning 
October 1, 1995.

    Issued at Washington, D.C., on August 8, 1995.
Bill. White,
Deputy Secretary.
(Deputy Secretary of Energy)

Order Approving Extension of Power Rates on an Interim Basis

    In the matter of: Southwestern Power Administration--Integrated 
System Rates. Rate Order No. SWPA-32.
August 8, 1995.
    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, for the Southwestern Power 
Administration were transferred to and vested in the Secretary of 
Energy. By Delegation Order No. 0204-108, effective December 14, 1983, 
48 FR 55664, the Secretary of Energy delegated to the Deputy Secretary 
of Energy on a non-exclusive basis the authority to confirm, approve 
and place into effect on an interim basis power and transmission rates, 
and delegated to the Federal Energy Regulatory Commission (FERC) on an 
exclusive basis the authority to confirm, approve and place in effect 
on a final basis, or to disapprove power and transmission rates. 
Amendment No. 1 to Delegation Order No. 0204-108, effective May 30, 
1986, 51 FR 19744, revised the delegation of authority to confirm, 
approve and place into effect on an interim basis power and 
transmission rates by delegating such authority to the Under Secretary 
of Energy rather than the Deputy Secretary of Energy. This delegation 
was reassigned to the Deputy Secretary of Energy by Department of 
Energy (DOE) Notice 1110.29, dated October 27, 1988, and clarified by 
Secretary of Energy Notice SEN-10-89, dated August 3, 1989, and 
subsequent revisions. By Amendment No. 2 to Delegation Order No. 0204-
108, effective August 23, 1991, 56 FR 41835, the Secretary of the 
Department of Energy revised Delegation Order No. 0204-108 to delegate 
to the Assistant Secretary, Conservation and Renewable Energy, the 
authority which was previously delegated to the Deputy Secretary in 
that Delegation Order. By Amendment No. 3 to Delegation Order No. 0204-
108, effective November 10, 1993, the Secretary of Energy redelegated 
to the Deputy Secretary of Energy, the authority to confirm, approve 
and place into effect on an interim basis power and transmission rates 
of the Power Marketing Administrations. This rate order is issued by 
the Deputy Secretary pursuant to said Amendment to Delegation Order No. 
0204-108.
    This is an interim rate extension. It is made pursuant to the 
authorities as implemented in 10 CFR 903.22(h) and 903.23(a)(3).

Background

    Southwestern Power Administration (Southwestern) currently has 
marketing responsibility for 2.2 million kilowatts of power from 24 
multiple-purpose reservoir projects, with power facilities constructed 
and operated by the U.S. Army Corps of Engineers, generally in all or 
portions of the states of Arkansas, Kansas, Louisiana, Missouri, 
Oklahoma and Texas. The Integrated System, composed of 22 of the 
projects, is interconnected through a transmission system presently 
consisting of 138- and 161-kV high-voltage transmission lines, 69-kV 
transmission lines, and numerous bulk power substations and switching 
stations. In addition, contractual transmission arrangements provide 
for integration of other projects into the system.
    The remaining two projects, Sam Rayburn Dam and Robert Douglas 
Willis, are isolated hydraulically and electrically from the 
Southwestern transmission system, and their power is marketed under 
separate contracts through which the customer purchases the entire 
power output of the project at the dam. A separate Power Repayment 
Study (PRS) is prepared for each isolated project, and each has a 
special rate which is not a part of this study.
    The existing rate schedules for the Integrated System were 
confirmed and approved on a final basis by the FERC on September 18, 
1991 for the period October 1, 1990 through September 30, 1994. These 
rates were extended on an interim basis (through September 30, 1995) by 
the Deputy Secretary of Energy on August 24, 1994. The FY 1995 
Integrated System PRSs indicate the need for a rate adjustment of 
$1,008,285 annually, or 1.07 percent.
    Pursuant to implementing authority in 10 CFR 903(h) and 
903.23(a)(3), the Deputy Secretary of Energy may extend a FERC-approved 
rate on an interim basis. The Administrator, Southwestern, published 
notice in the Federal Register on June 15, 1995, 60 FR 31464, 
announcing a 15-day period for public review and comment concerning the 
proposed interim rate extension. In addition, informal meetings were 
held with customer representatives in April 

[[Page 42560]]
and May 1995. Written comments were accepted through June 30, 1995. No 
comments on the proposed interim extension were received.

Discussion

    The existing Integrated System rates are based on the FY 1990 PRS. 
PRSs have been completed on the Integrated System each year since 
approval of the existing rates. Rate changes identified by the PRSs 
since that period have indicated the need for minimal rate increases or 
decreases. Since the revenue changes reflected by the PRSs were within 
the plus-or-minus two percent Rate Adjustment Threshold established by 
Southwestern's Administrator on June 23, 1987, these rate adjustments 
were deferred in the best interest of the government and provided for 
the next year's PRS to determine the appropriate level of revenues 
needed for the next rate period.
    The FY 1995 PRS indicates the need for a rate increase of 1.07 
percent. As has been the case since the existing rates were approved, 
the FY 1995 rate adjustment needed falls within Southwestern's plus-or-
minus two percent Rate Adjustment Threshold and would normally be 
deferred. However, the existing rates expire on September 30, 1995. 
Consequently, Southwestern proposes to extend the existing rates for a 
one-year period ending September 30, 1996, on an interim basis under 
the implementation authorities noted in 10 CFR 903.22(h) and 
903.23(a)(3).
    Southwestern continues to make significant progress toward 
repayment of the Federal investment in the Integrated System. Through 
FY 1994, status of repayment for the Integrated System was 
$319,846,125, which represents approximately 33 percent of the 
$982,356,193 Federal investment for the Integrated System. The status 
has increased almost 63 percent since the existing rates were placed in 
effect.
    Information regarding this rate extension, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74101.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby extend on an interim basis, for 
the period of one year, effective October 1, 1995, the current FERC-
approved Integrated System Rates for the sale of power and energy.

    Issued at Washington, DC, on August 8, 1995.
Bill White,
Deputy Secretary.
[FR Doc. 95-20283 Filed 8-15-95; 8:45 am]
BILLING CODE 6450-01-P