[Federal Register Volume 60, Number 226 (Friday, November 24, 1995)]
[Rules and Regulations]
[Pages 57924-57926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28559]



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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 11

[Docket No. RM96-2-000; Order No. 584]


Correction of Annual Charges Formula

Issued November 14, 1995.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
amending its regulations governing the assessment of annual charges for 
the administration of Part I of the Federal Power Act (FPA). The 
amendment restores the status quo ante in the formulae for allocating 
annual charges among licensees, by correcting an error in a previous 
final rule.

EFFECTIVE DATE: December 26, 1995.

FOR FURTHER INFORMATION CONTACT: Barry Smoler, Officer of the General 
Counsel, Federal Energy Regulatory Commission, 825 N. Capitol Street, 
NE., Washington, DC 20426, (202) 208-1269.

SUPPLEMENTARY INFORMATION: In addition to publishing the full text of 
this document in the Federal Register, the Commission also provides all 
interested persons an opportunity to inspect or copy the contents of 
this document during normal business hours in Room 2A, 888 First 
Street, NE., Washington, DC 20426.
    The Commission Issuance Posting System (CIPS), an electronic 
bulletin board service, provides access to the texts of formal 
documents issued by the Commission. CIPS is available at no charge to 
the user and may be accessed using a personal computer with a modem by 
dialing (800) 856-3920. To access CIPS, set your communications 
software to 19200, 14400, 12000, 9600, 7200, 4800, 2400 or 1200bps, 
full duplex, no parity, 8 data bits, and 1 stop bit. The full text of 
this document will be available on CIPS in ASCII and WordPerfect 5.1 
format. The complete text on diskette in Wordperfect format may also be 
purchased from the Commission's copy contractor, La Dorn Systems 
Corporation, located in Room 2A, 888 First St. NE., Washington, DC 
20426.

I. Introduction and Background

    The Federal Energy Regulatory Commission (Commission) is amending 
its regulations governing the assessment of annual charges for the 
administration of Part I of the Federal Power Act (FPA).\1\ The 
amendment restores the status quo ante in the formulae for allocating 
annual charges among licenses, by correcting an error in a previous 
final rule.

    \1\ 16 U.S.C. 792-823b.
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    On March 15, 1995, the Commission issued Order No. 576, a final 
rule \2\ that amended Part 11 of the Commission's regulations. \3\ One 
provision of Order No. 576 amended Sec. 11.1 of the regulations \4\ by 
substituting (in several subsections) kilowatts for horsepower in 
stating a project's authorized installed capacity. The Commission 
explained that the change ``was designed to reflect modern usage in the 
rating of equipment used in hydropower projects.'' \5\

    \2\ III FERC Stats. & Regs. (Regulations Preambles) para. 
31,016. Order No. 576 was published in the Federal Register on March 
22, 1995, 60 FR 15040.
    \3\ 18 CFR Part 11.
    \4\ 18 CFR 11.1.
    \5\ III FERC Stats. & Regs. (Regulations Preambles) para. 31,016 
at p. 31,303.
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    Order No. 576 added a new Sec. 11.1(i) that defined ``authorized 
installed capacity'' in terms of kilowatts (kW) and related electrical 
concepts and terminology. The definition included a conversion factor 
(multiply by 0.75 kW/hp) for converting the capacity of a turbine 
stated in horsepower (hp).
    The formulae for allocating annual charges among non-municipal 
licensees were set forth in the section of the regulations that Order 
No. 576 renumbered as Sec. 11.1(c)(3). Order No. 576 deleted all 
references in that subsection to ``horsepower,'' replacing them with 
references to ``authorized installed capacity.'' As explained above, 
``authorized installed capacity'' was now defined in terms of 
kilowatts, not horsepower. In making this change, however, the 
Commission inadvertently neglected to include the horsepower to 
kilowatt conversion adjustment in that part of the renumbered 
Secs. 11.1(c)(3) (i) and (iii) that referred to generation. The effect 
of that inadvertent omission was to seriously distort the balance of 
capacity and generation in determining the allocation of certain annual 
charges. \6\ No such distortion was 

[[Page 57925]]
intended. Indeed, in another part of Order No. 576 the Commission 
explicitly stated that although it had invited comment on the choice of 
capacity or generation (or both) in the allocation formulae, it had 
decided not to make any such changes. \7\

    \6\ There is no problem in the formula in Sec. 11.1(c)(3)(ii), 
because that formula is based entirely on capacity. For the same 
reason, there is no problem in the assessment formula for municipal 
licensees (see paragraph (d) of that subsection), which is also 
based solely on capacity. The distortion occurs only when the 
formula includes a ratio between factors for generation and 
capacity.
    \7\ III FERC Stats. & Regs. (Regulations Preambles) para. 31,016 
at pp. 31,307-08.
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    Inasmuch as the distortion in the ratio between generation and 
capacity is the inadvertent and unintended result of leaving out the 
horsepower to kilowatt conversion adjustment when substituting 
kilowatts for horsepower as the measure of capacity in 
Secs. 11.1(c)(3)(i) and (iii), we will correct that omission in this 
final rule by adding that conversion adjustment to those subsections. 
That will restore the status quo ante, as we intended all along. The 
conversion factor will be incorporated into the formulae in 
Secs. 11.1(c)(3)(i) and (iii) by substituting ``112.5'' for ``150,'' as 
the generation multiplier, in each instance, and by substituting ``75'' 
for ``100'' in subsection (iii).
    Finally, we will correct an inadvertent omission of a cross-
reference in the definition of ``authorized installed capacity'' in 
Sec. 11.1(i). At present, that section cross-references only to 
paragraph (c) of Sec. 11.1. We will add a cross-reference to paragraph 
(d) as well, as was our original intent.

II. Regulatory Flexibility Certification

    The Regulatory Flexibility Act of 1980 (RFA) \8\ generally requires 
a description and analysis of proposed regulations that will have a 
significant economic impact on a substantial number of small entities. 
\9\ Pursuant to section 605(b) of the RFA, the Commission hereby 
certifies that the final rule adopted herein will not have a 
significant economic impact on a substantial number of small entities.

    \8\ 5 U.S.C. 601-612.
    \9\ Section 601(c) of the RPA defines a ``small entity'' as a 
small business, a small not-for-profit enterprise, or a small 
governmental jurisdiction. A ``small business'' is defined by 
reference to section 3 of the Small Business Act as an enterprise 
which is ``independently owned and operated and which is not 
dominant in its field of operation.'' 15 U.S.C. 632(a).
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III. Environmental Statement

    Issuance of this final rule does not constitute a major federal 
action having a significant adverse impact on the quality of the human 
environment under the Commission's regulations implementing the 
National Environmental Policy Act.\10\ The final rule adopted herein is 
procedural in nature and therefore falls within the categorical 
exemptions provided in the Commission's regulations. Consequently, 
neither an environmental impact statement nor an environmental 
assessment is required.\11\

    \10\ See Order No. 486, 52 FR 47897 (Dec. 17, 1967), FERC Stats. 
& Regs. (Regulations Preambles 1986-1990) para. 30,783 (Dec. 10, 
1987) (codified at 18 CFR Part 380).
    \11\ See 18 CFR 380.4(a)(1).
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IV. Information Collection Statement

    The Office of Management and Budget's (OMB) regulations at 5 CFR 
Part 1320 require that OMB approve certain information and 
recordkeeping requirements imposed by an agency. The final rule adopted 
herein does not modify any collections of information.
    Interested persons may obtain information on these reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
888 First Street, NE., Washington, DC 20426 [Attention: Michael Miller, 
Information Services Division (202) 208-1415]. Comments on the 
requirements of this rule can be sent to the Office of Information and 
Regulatory Affairs of OMB [Attention: Desk Officer for Federal Energy 
Regulatory Commission].

V. Effective Date

    The Administrative Procedure Act (APA) \12\ requires that a notice 
of proposed rulemaking be published in the Federal Register and that an 
opportunity for comment be provided when an agency promulgates 
regulations. The APA sets forth exemptions to the notice and comment 
requirements if the rule is, inter alia, a rule of agency organization, 
procedure, or practice, or if the Commission for good cause finds that 
notice and comment procedures thereon are impracticable, unnecessary, 
or contrary to the public interest.

    \12\ 5 U.S.C. 552(a).
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    For the reasons discussed above, this final rule corrects an error 
of omission in the final rule adopted in Order No. 576. Therefore, for 
good cause the Commission finds that notice and comment procedures are 
unnecessary.
    This final rule is effective December 26, 1995, and is retroactive 
to the assessment of the annual charges for fiscal year 1995. This will 
ensure that no licensee will pay for fiscal year 1995 an assessment of 
annual charges greater than it would have paid had the formulae been 
correctly stated in Order No. 576.

List of Subjects in 18 CFR Part 11

    Electric power, Reporting and recordkeeping requirements.

    By the Commission.
Linwood A. Watson, Jr.,
Acting Secretary.

    In consideration of the foregoing, the Commission amends Part 11 of 
Chapter I, Title 18, Code of Federal Regulations, as set forth below.

PART 11--ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT

    1. The authority citation for Part 11 continues to read as follows:

    Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352.

    2. In section 11.1, paragraphs (c)(3) (i) and (iii) and paragraph 
(i) are revised to read as follows:


Sec. 11.1  Costs of administration.

* * * * *
    (c) * * *
    (3) The annual charge factor for each such project shall be found 
as follows:
    (i) For a conventional project the factor is its authorized 
installed capacity plus 112.5 times its annual energy output in 
millions of kilowatt-hours.
* * * * *
    (iii) For a mixed conventional-pumped storage project the factor is 
its authorized installed capacity plus 112.5 times its gross annual 
energy output in millions of kilowatt-hours less 75 times the annual 
energy used for pumped storage pumping in million of kilowatt-hours.
* * * * *
    (i) Definition. As used in paragraphs (c) and (d) of this section, 
authorized installed capacity means the lesser of the ratings of the 
generator or turbine units. The rating of a generator is the product of 
the continuous-load capacity rating of the generator in kilovolt-
amperes (kVA) and the system power factor in kW/kVA. If the licensee or 
exemptee does not know its power factor, a factor of 1.0 kW/kVA will be 
used. The rating of a turbine is the product of the turbine's capacity 
in horsepower (hp) at best gate (maximum efficiency point) opening 
under the manufacturer's rated head times a conversion factor of 0.75 
kW/hp. If the generator or turbine installed has a rating different 
from that authorized in the license or exemption, or the installed 
generator is rewound or otherwise modified to change its rating, or the 
turbine is modified to change its rating, the licensee or exemptee must 
apply to the Commission to amend its 

[[Page 57926]]
authorized installed capacity to reflect the change.
* * * * *
[FR Doc. 95-28559 Filed 11-22-95; 8:45 am]
BILLING CODE 6717-01-P