[Federal Register Volume 61, Number 111 (Friday, June 7, 1996)]
[Proposed Rules]
[Pages 29040-29044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14062]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 175

RIN 1076-AD45


Indian Electric Power Utilities

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The regulations on Indian electric power utilities were 
identified for reinvention under the National Performance Review. This 
proposed revision is written in plain English to make the rule easier 
to read and understand for utility customers and operators.

DATES: Comments by interested parties must be in writing and we must 
receive them before August 6, 1996.

ADDRESSES: You must mail or hand carry your comments to Terrance 
Virden, Acting Director, Office of Trust Responsibilities, Bureau of 
Indian Affairs, Department of the Interior, 1849 C Street, N.W., MS 
4513 MIB, Washington, D.C. 20240.

FOR FURTHER INFORMATION CONTACT: Ross Mooney, Chief, Branch of 
Irrigation and Power, Division of Water and Land Resources, Bureau of 
Indian Affairs, Department of the Interior, 1849 C Street, N.W., MS 
4513 MIB, Washington, D.C. 20240, Phone Number (202)208-5480.

SUPPLEMENTARY INFORMATION: We are publishing this proposed rule by the 
authority delegated by the Secretary of the Interior to the Assistant 
Secretary--Indian Affairs by 209 DM 8.
    Our policy is to give the public an opportunity to participate in 
the rule making process by submitting written comments regarding 
proposed rules. We will consider all comments received during the 
public comment period. We will determine necessary revisions and issue 
the final rule. Please refer to this preamble's ADDRESSES section for 
where you must submit your written comments on this proposed rule.
    We certified to the Office of Management and Budget (OMB) that 
these proposed regulations meet the applicable standards provided in 
Sections 2(a) and 2(b)(2) of Executive Order 12778.
    This rule is not a significant rule under Executive Order 12866 and 
does not require approval by the Office of Management and Budget.
    This rule imposes no unfunded mandates on any governmental or 
private entity and is in compliance with the provisions of the Unfunded 
Mandates Act of 1995.
    We determined this proposed rule:
    (a) Does not constitute a major Federal action significantly 
affecting the human environment, and no detailed statement is needed 
under the National Environmental Policy Act of 1969;
    (b) Does not have significant takings implications in accordance 
with Executive Order 12630; and
    (c) Does not have significant Federalism effects.
    (d) Does not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.).

Paperwork Reduction Act of 1995

    Section 175.13(a) contains information collection requirements. As 
required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), 
the Bureau of Indian Affairs has submitted a copy of this section to 
the Office of Management and Budget (OMB) for its review.
    We need to know the customer's name, address, phone number, social 
security number, the kind of service desired, and where the service is 
needed.
    All information is collected when applying for electric service. 
Reporting and record keeping burden for this collection of information 
is estimated to average 15 minutes for each response, including time 
for gathering and maintaining data and completing and reviewing the 
collection of information. The total reporting and record keeping 
burden for this collection is estimated to be less than 1188 hours per 
year.
    Organizations and individuals wishing to submit comments on the 
information collection requirement should direct them to the Office of 
Information and Regulatory Affairs, OMB, Room 10202, New Executive 
Office Building, Washington, D.C.

[[Page 29041]]

20503; Attention Desk Officer for U.S. Department of the Interior.
    The Bureau of Indian Affairs considers comments by the public on 
this proposed collection of information in:
    Evaluating whether the proposed collection of information is 
necessary for the proper performance of the functions of the Bureau, 
including whether the information will have practical utility;
    Enhancing the quality, usefulness, and clarity of the information 
to be collected; and
    Minimizing the burden of the collection of information on those who 
are to respond, including through the use of appropriate collection 
techniques or other form of information technology.
    OMB is required to make a decision concerning the collection of 
information contained in these proposed regulations between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment to the OMB is best assured of having its full 
affect if OMB receives it within 30 days of publication. This does not 
affect the deadline for the public to comment to the Bureau of Indian 
Affairs on the proposed rule.

List of Subjects in 25 CFR Part 175

    Indian-lands, Irrigation.

    For the reasons set out in the preamble, we propose to revise Part 
175 of Title 25 of the Code of Federal Regulations, as follows:

PART 175--INDIAN ELECTRIC POWER UTILITIES

Subpart A--General Provisions

Sec.
175.01  Definitions
175.02  Does this part apply to you?
175.03  Do you need to comply?
175.04  Information Collection.

Subpart B--How do we operate a power facility?

175.10  We prepare a manual to tell you how we operate.
175.11  What are our responsibilities?
175.12  What are our employees' responsibilities?
175.13  What are your responsibilities?
175.14  How can you lose your electric service?

Subpart C--What Does It Cost Us To Operate A Power Facility?

175.20  What will we bill you for?

Subpart D--How do we pay for Operating a Power Facility?

175.30  What do your power bills pay for?
175.31  We charge service fees.
175.32  We charge electric power rates.
175.33  We charge to recover costs of purchased power for resale to 
you.
175.34  How we notify you?
175.35  How do we bill you?
175.36  How do you pay us?

Subpart E--How do we Extend or Upgrade Your Power System?

175.40  When do we extend or upgrade your power system?
175.41  You can pay for system extension or upgrades.
175.42  You may receive a refund of your construction costs.
175.43  We need a right-of-way for your system.

Subpart F--If you do not Agree with our Actions.

175.50  You may appeal to us.
175.51  You may appeal to the Interior Board of Indian Appeals.
175.52  While your appeal is pending.

    Authority: 5 U.S.C. 301; sec. 2, 49 Stat. 1039-1040; 54 Stat. 
422; sec. 5, 43 Stat. 475-476; 45 Stat. 210-211; and sec. 7, 62 
Stat. 273.

Subpart A--General Provisions


Sec. 175.01  Definitions.

    Appellant means any person who files an appeal under this part.
    Customer means any individual, business, or government entity to 
whom we provide the services of a utility or who seeks to have us 
provide the services of a utility.
    Customer Service means the assistance or service we provide to 
customers, other than the actual delivery of electric power or energy, 
including, but not limited to, such items as: line extension, system 
upgrade, meter testing, connection or disconnection, special meter 
reading, or other assistance or service as provided for in the 
operations manual.
    Electric Power Utility or Utility means that program administered 
by the Bureau of Indian Affairs which provides for the marketing of 
electric power or energy.
    Electric Service means the delivery of electric energy or power by 
the utility to the point of delivery pursuant to execution of a service 
agreement or special contract as provided for in the operations manual.
    Inventory valuation means our accounting procedures for fixing the 
costs for supplies we hold in inventory.
    Operations Manual means the utility's written compilation of its 
procedures and practices which govern service the utility provides.
    Power Rates means the charges we establish in a rate schedule(s) 
for electric service we provide to a customer.
    Purchased Power means power or energy we buy from another power 
marketing organization for resale to our customers.
    Service means electric service and customer service which we 
provide.
    Service Agreement means the written form provided by the utility 
which constitutes a binding agreement between the customer and the 
utility for service except for service which the utility provides to 
the customer under a special contract.
    Service Fees means charges for providing administrative or customer 
service to customers, prospective customers, and other entities having 
business relationships with the utility.
    Service Life means the period of time we can expect performance to 
design standards from a plant or capitalized equipment.
    Special Contract means a written agreement between the utility and 
a customer for special conditions of service.
    Utility office(s) means the current or future facility or 
facilities which the utility uses for conducting general business with 
customers.
    We means the United States Government, the Department of the 
Interior, the Secretary, the Bureau of Indian Affairs, and all who are 
authorized to represent us in matters covered under this part.
    You means a customer of a Bureau of Indian Affairs power utility.


Sec. 175.02  Does this part apply to you?

    The purpose of this part is to regulate the electric power 
utilities administered by the Bureau of Indian Affairs.


Sec. 175.03  Do you need to comply?

    All utilities and customers of utilities administered by the Bureau 
of Indian Affairs are bound by this part.


Sec. 175.04  Information collection.

    The information collection requirements contained in Sec. 175.13(a) 
will be approved by the Office of Management and Budget as required by 
44 U.S.C. 3501 et seq. We collect this information to provide you the 
appropriate electric power service and an accurate bill. You must 
provide this information to obtain electric power service.

Subpart B--How Do We Operate a Power Facility?


Sec. 175.10  We prepare a manual to tell you how we operate.

    We will establish an operations manual to administer the utility 
consistent with this part and all applicable laws and regulations. We 
will amend the operations manual as needed.
    (a) We will notify you of changes we propose to make to the 
operations

[[Page 29042]]

manual. We will notify you of a proposed action to establish or amend 
the operations manual at least 30 days before the effective date of the 
proposed action so that you may comment on our proposed action. We will 
publish notices of the proposed action in the Federal Register. The 
notice will give you:
    (1) A brief description of the proposed action;
    (2) The effective date of the proposed action;
    (3) The name, address and telephone number of the person you should 
contact if you have comments or questions; and
    (4) The period of time you have to submit your comments or views of 
the proposed action.
    (b) We will consider your comments. We will consider your comments 
before we establish or amend the operations manual. We will notify you 
of any decisions we make finalizing the operations manual and we will 
provide an explanation of how we made the decisions in the notice.


Sec. 175.11  What are our responsibilities?

    We must:
    (a) Provide you with reliable energy. We will define the specific 
types of service and limitations on our service in our operations 
manual.
    (b) Construct and operate facilities in accordance with accepted 
industry practice.
    (c) Exercise reasonable care in protecting your equipment and 
property.
    (d) Comply with additional requirements we define in the operations 
manual.
    (e) Read your meters or authorize you to read your meters at 
intervals prescribed in the operations manual, service agreement, or 
special contract, except where we cannot read the meter due to 
conditions described in the operations manual.
    (f) Get your permission to operate or handle your equipment, except 
to eliminate what, in our judgment, is an unsafe condition.
    (g) Prevent the unauthorized use of electricity.


Sec. 175.12  What are our employees responsibilities?

    Our employees are forbidden to accept any personal compensation 
from you or any payment for services related to their employment by the 
utility.


Sec. 175.13  What are your responsibilities?

    You must:
    (a) Enter into a written service agreement or special contract with 
us to obtain electrical power services.
    (b) Install and operate your equipment in compliance with the 
National Electrical Manufacturers Association Standards and/or the 
National Electrical Code of the National Board of Fire Underwriters for 
Electric Wiring and Apparatus as they apply to you.
    (c) Pay all your financial obligations resulting from your 
receiving utility service.
    (d) Comply with additional requirements we may define in the 
operations manual.
    (e) Prevent unauthorized use of electricity.
    (f) Not install or use equipment which will adversely affect the 
utility system or other customers of the utility.


Sec. 175.14  How can you lose your electric service?

    We may discontinue your service if you do not comply with our 
requirements as stated in this part and in the operations manual. We 
will define our procedures for discontinuing your service in the 
operations manual.

Subpart C--What Does It Cost To Operate a Power Facility?


Sec. 175.20  What will we bill you for?

    (a) We will bill you for the following three types of costs:
    (1) Service fees are for services we provide to you that are not 
power consumption; i.e., you apply for electricity where there are no 
poles and wires, we charge you the cost of installing the poles and 
wire.
    (2) Electric power rate is the cost of power we provide to you; 
i.e., your meter reading.
    (3) Purchased power costs are the costs of power we buy for resale 
to you.
    (b) We will compute our costs to operate a power facility as the 
total marginal costs for: power generation, power transmission, power 
distribution, operation and maintenance, debt servicing, capital 
improvements, minus miscellaneous revenues.
    (c) We will compute our inventory valuation based on a last in--
first out (LIFO) depreciation method and we will depreciate our plants 
and capital equipment by applying straight line depreciation over the 
service life of the plant or equipment. We will include plant and 
equipment service life tables in the operations manual.

Subpart D--How Do We Pay for Operating a Power Utility?


Sec. 175.30  What do your power bills pay for?

    The Act of August 7, 1946 (60 Stat. 895), as amended by the Act of 
August 31, 1951 (65 Stat. 254) provides that we collect revenues from 
power operations to:
    (a) Pay our expenses for operating and maintaining the utility.
    (b) Create and maintain reserve funds to be available so that we 
can:
    (1) Make repairs and replacements to the utility;
    (2) Defray emergency expenses for the utility;
    (3) Ensure the continuous operation of the utility.
    (c) Amortize construction costs allocated to be returned from power 
revenues, in accordance with the repayment provisions of the applicable 
statutes or contracts.
    (d) Pay other expenses and obligations chargeable to power revenues 
to the extent required or permitted by law.


Sec. 175.31  We charge service fees.

    Annually we will unilaterally establish service fees to recover our 
expenses for providing services to you. We will publish a schedule of 
the service fees and the effective date in the Federal Register, as 
provided in Sec. 175.34. Our decision on the amount of the service fees 
is final. The fees will remain in effect until we amend them.


Sec. 175.32  We charge electric power rates.

    Annually we will review the rates we charge for electric power or 
energy. We will use the annual review to decide if the revenues we 
collect are sufficient to pay for our costs defined under Sec. 175.30. 
If our current rates and fees are not sufficient to cover our costs, we 
will conduct further studies to determine whether we should adjust the 
rates and to prepare rate schedules which will return sufficient 
revenues. If we decide we must adjust the rates we charge, we will 
inform you. We will publish a notice of the rate increase in the 
Federal Register, as provided in Sec. 175.34.


Sec. 175.33  We charge to recover costs of purchased power for resale 
to you.

    When the cost we pay for purchased power or energy changes, we will 
compute how much it changes the cost for services we provide to you and 
we will adjust the power rates accordingly. When we decide we must 
adjust the rates we charge, we will inform you. We will publish a 
notice of the rate increase in the Federal Register, as provided in 
Sec. 175.34.


Sec. 175.34  How we notify you.

    (a) If we decide we must adjust the rates or fees we charge, we 
will inform you of the proposed adjustments. We will publish in the 
Federal Register a notice of the proposed change. The notice will give 
you:

[[Page 29043]]

    (1) A description of the proposed action;
    (2) The name, address, and telephone number of the person you 
should contact if you have comments or questions; and
    (3) The period of time you have to submit your comments or views of 
the proposed action.
    (b) You may comment on our proposed changes. You may submit written 
statements to us. We will incorporate your statements into our record.
    (c) We will consider your comments. We will consider all your 
written statements before we finalize the proposed changes. We will 
decide any issues you raise concerning the proposed changes. We will 
notify you of our decisions and provide you an explanation of how we 
made the decisions through a notice which we will publish in the 
Federal Register. The changes will remain in effect until we make 
further adjustments using these same procedures.


Sec. 175.35  How do we bill you?

    (a) Metered customers--We will compute your bills using the 
published rate schedules. We will bill you monthly unless you have a 
special contract with different billing arrangements. We will measure 
your power or energy demand using the register on the meter at your 
point of delivery. We will estimate your power or energy demand if: 
your meter has failed; the seal on your meter is broken; or our 
employees cannot read the meter registrations. We will base our 
estimate on the pattern of your prior power consumption or on an 
estimate of your electric load if you have no billing history with us.
    (b) Unmetered customers--We will bill you according to the 
provisions of your special contract.
    (c) Service fee billing--We will send you a special bill for other 
services we provide you.


Sec. 175.36  How do you pay us?

    (a) You may pay us in person or you may mail your payment to the 
utility office which we designate in our operations manual. We may 
refuse for cause to accept personal checks for payment of bills.
    (b) What if your check bounces? We will try to collect payment from 
you if your bank returns your check due to insufficient funds or other 
cause. We will assess interest, penalties and administrative charges 
for each delinquent account and collection action we take other than 
court proceedings. We will consider your account to be delinquent if 
you do not redeem your check and we may discontinue your service. We 
will accept only cash, a cashier's check, or a money order to cover an 
unredeemed check and associated charges.

Subpart E--How Do We Extend or Upgrade Your Power System?


Sec. 175.40  When do we extend or upgrade your power system?

    We may extend or upgrade a power system to serve new or increased 
loads.


Sec. 175.41  You can pay for system extensions or upgrades.

    You may contract with us to finance the construction necessary to 
extend or upgrade the power system if the construction would not be 
adverse to the interest of the utility. We must approve your 
construction plans and specifications, any items you furnish, or 
construction you perform. You may also:
    (a) Furnish materials or equipment for an extension or upgrade to 
the system;
    (b) Install materials or equipment for an extension or upgrade to 
the system; or
    (c) Pay us to install materials or equipment for an extension or 
upgrade to the system.


Sec. 175.42  You may receive a refund of your construction costs.

    We may refund all or part of your payment for construction costs. 
If we do this, we will stipulate the arrangements for your refund in a 
special contract. We will consider refunding your costs if:
    (a) Additional customers are later served by your extension or 
upgrade; or
    (b) We determine that the service will provide substantial economic 
benefits to the utility as a whole.


Sec. 175.43  We need a right of way for your system.

    You are responsible for obtaining the rights of way necessary for 
us to furnish services to you where there is no existing right(s) of 
way for our facilities. All rights of way, material, or equipment you 
furnish or install will be our property.

Subpart F--If You Do Not Agree With Our Actions


Sec. 175.50  You may appeal to us.

    (a) If you feel any of our actions or decisions adversely affect 
you, you may file a notice of appeal with us within 30 days of our 
action. You must submit the notice of appeal in writing and clearly 
identify the decision which you are appealing. We will grant no 
extension of time for filing a notice of appeal. We will list the 
address where appeals must be sent in the operations manual.
    (b) Within 30 days after you file a notice of appeal, you must file 
a statement with us which lists the reasons for your appeal. In the 
statement you must explain why you believe the decision under appeal is 
wrong and you must include your arguments and any supporting 
documentation. You may file the statement of reason(s) at the same time 
as the notice of appeal. We may summarily dismiss your appeal if you do 
not file a statement of reason(s).
    (c) You must deliver your documents to us or ensure they are 
received in the facility officially designated for receipt of mail 
addressed to us.
    (d) Within 30 days of your filing your statement of reasons, we 
will:
    (1) Decide your appeal in writing; or
    (2) Refer your appeal to the Office of Hearings and Appeals Board 
of Indian Appeals for a decision.


Sec. 175.51  You may appeal to the Interior Board of Indian Appeals.

    (a) You may file an appeal of any decision with the Office of 
Hearings and Appeals Board of Indian Appeals if:
    (1) We do not decide your appeal within 30 days of your filing your 
statement of reasons; or
    (2) You do not agree with our decision regarding an action you 
appealed to us.
    (b) We will list the address for the Office of Hearings and Appeals 
Board of Indian Appeals in the operations manual.
    (c) To file your appeal with the Office of Hearings and Appeals 
Board of Indian Appeals, you must follow the provision of 43 CFR, part 
4, subpart D, except that you must file a notice of appeal from a 
decision under Secs. 175.31 and 175.33 within 30 days of publication of 
the decision. If the Office of Hearings and Appeals Board of Indian 
Appeals does not receive an appeal within the time frames defined in 43 
CFR part 4, subpart D, our decision will be final.
    (d) If we refer your appeal to the Office of Hearings and Appeals 
Board of Indian Appeals rather than deciding the appeal ourself, we 
will make the referral.


Sec. 175.52  While your appeal is pending

    If your appeal involves:
    (a) Our discontinuing your service, we do not have to resume your 
service during the appeal process unless you meet our requirements.
    (b) The amount of a bill and you have paid the bill, we will 
acknowledge that you have paid the bill under protest until the final 
decision on your appeal is rendered.

[[Page 29044]]

    (c) The amount of a bill and you have not paid the bill and the 
final decision on the appeal requires you to pay the bill, we will 
consider your bill to be a delinquent account subject to interest, 
penalties, and administrative charges, as required by the Federal 
Claims Collection Act of 1966, as amended, 31 U.S.C. 3717.
    (d) An electric power rate, we will implement the rate and it will 
remain in effect subject to the final decision on the appeal.

    Dated: May 8, 1996.
Ada E. Deer,
Assistant Secretary--Indian Affairs.
[FR Doc. 96-14062 Filed 6-6-96; 8:45 am]
BILLING CODE 4310-02-P