[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)] [Notices] [Pages 35209-35210] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-17119] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Notice of Proposed Power Rate--Robert D. Willis AGENCY: Southwestern Power Administration (Southwestern), DOE. ACTION: Notice for public review and comment. ----------------------------------------------------------------------- SUMMARY: The Administrator, Southwestern, has prepared Current and Revised 1996 Power Repayment Studies for the Robert D. Willis (Willis) project which show the need for a decrease in annual revenues required to meet cost recovery criteria. The decrease in the revenues required will result from a change in the allocation of costs due to the remote operation of the Whitney Project from the Sam Rayburn (Rayburn) Project beginning in FY 1997. The existing power plant operators' costs will be allocated among three projects rather than just Willis and Rayburn. The Administrator has also developed a proposed rate schedule for the isolated Willis project to recover the required revenues. The proposed rate for the Willis project would decrease annual revenues approximately 9.3 percent from $294,312 to $266,928 beginning October 1, 1996. DATES: A Public Information Forum has been scheduled for July 16, 1996, in Tulsa Oklahoma. A Public Comment Forum will be held July 30, 1996, in Tulsa, Oklahoma. Written comments are due on or before (insert 30 days from the date of Federal Register publication). Southwestern is conducting a 30 day public notice and comment period (10 CFR 903.14(d)). This public participation period is for a minor rate adjustment which does not require any comment period to exceed 30 days. In addition, this project has a single hydroelectric power customer and that customer directly impacted has been informed of the proposed rate decrease. It is anticipated that any comments from the customer will be developed well within the 30 day period. ADDRESSES: Written comments should be submitted to the Administrator, Southwestern Power Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101. FOR FURTHER INFORMATION CONTACT: Mr. George C. Grisaffe, Assistant Administrator, Office of Administration and Rates, Southwestern Power Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101, (918) 595-6628. SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by an Act of the U.S. Congress, Department of Energy Organization Act, P. L. 95-91, dated August 4, 1977, and Southwestern's power marketing activities were transferred from the Department of the Interior to the Department of Energy, effective October 1, 1977. Southwestern markets power from 24 multiple-purpose reservoir projects with power facilities constructed and operated by the U.S. Army Corps of Engineers. These projects are located in the States of Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area includes these states plus Kansas and Louisiana. Of the total, 22 projects comprise an Integrated System and are interconnected through Southwestern's transmission system and exchange agreements with other utilities. The Sam Rayburn Dam project, located in eastern Texas, is not interconnected with Southwestern's Integrated System hydraulically, electrically, or financially. Instead, the power produced by the Sam Rayburn Dam project is marketed by Southwestern as an isolated project under a contract through which the customer purchases the entire power output of the project at the dam. The Willis project, located on the Neches River downstream from the Sam Rayburn Dam, consists of two 4,000 kilowatt hydroelectric generating units. It, like the Sam Rayburn Dam project, is [[Page 35210]] marketed as an isolated project under a contract through which the customer, Sam Rayburn Municipal Power Agency (SRMPA), receives the entire output of the project for a period of 50 years as a result of funding the construction of the hydroelectric facilities at the project. A separate power repayment study is prepared for each project which has a special rate based on its isolated project determination. Following Department of Energy Order Number RA 6120.2, the Administrator, Southwestern, prepared a current power repayment study for the Robert D. Willis project using the existing annual rate of $294,312. The study indicated that maintaining the current rate will create a revenue surplus for the project. This is primarily a result of adding the remote operation of the Whitney Project, beginning in FY 1997, by the Corps of Engineers from the Sam Rayburn Project. The Revised Power Repayment Study for the isolated Willis project shows that a decrease of $27,384 (a 9.3 percent decrease) annually will satisfy repayment criteria. This decrease would change annual revenues produced by the Willis Project from $294,312 to $266,928 and satisfy the present financial criteria for repayment of the project. Opportunity is presented for customers and interested parties to receive copies of the studies and proposed rate schedule for the Willis project. If you desire a copy of the Repayment Study Data Package for the Willis project, please do not hesitate to submit your request to: Mr. George C. Grisaffe, Assistant Administrator, Office of Administration and Rates, P.O. Box 1619, Tulsa, OK 74101, (918) 595- 6628. A Public Information Forum is scheduled to be held at 4:30 p.m., central time (c.t.) Tuesday, July 16, 1996, in Southwestern's offices, room 1600, Williams Center Tower 1, One West Third Street, Tulsa, Oklahoma. The Forum is to explain to customers and interested parties the proposed rates and supporting studies. The Forum will be conducted by a chairman who will be responsible for orderly procedure. Questions concerning the rates, studies and information presented at the forum may be submitted from interested persons and will be answered, to the extent possible, at the forum. Questions not answered at the Forum will be answered in writing, except the questions involving voluminous data contained in Southwestern's records may best be answered by consultation and review of pertinent records at Southwestern's offices. Persons interested in attending the Public Information Forum should indicate in writing by 4:00 p.m., c.t., Friday, July 12, 1996, their intent to appear at such Forum. Accordingly, if no one so indicates their intent to attend, no such Forum will be held. A Public Comment Forum is scheduled to be held at 1:30 p.m., c.t., Tuesday, July 30, 1996, at the same location established for the Public Information Forum. At the Public Comment Forum interested persons may submit written comments or make oral presentations of their views and comments. This forum will also be conducted by a chairman who will be responsible for orderly procedure. Southwestern's representatives will be present, and they and the chairman may ask questions of speakers. The chairman may allow others to speak if time permits. Persons interested in attending or speaking at the Public Comment Forum should indicate in writing by 4:00 p.m., c.t., Friday, July 26, 1996, their intent to appear at such Forum. Accordingly, if no one so indicates their intent to attend, no such Forum will be held. A transcript of each Forum will be made. Copies of the transcripts may be obtained from the transcribing service. Copies of all documents introduced will be available from Southwestern upon request, for a fee. Written comments on the proposed rates for the project are due on or before 30 days from publication. Written comments should be submitted to the Administrator, Southwestern Power Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101. Following review of the oral and written comments, the Administrator will submit the rate proposals and the Power Repayment Studies for the Willis project, in support of the proposed rates, to the Deputy Secretary of Energy for confirmation and approval on an interim basis and to the Federal Energy Regulatory Commission (FERC) for confirmation and approval on a final basis. The FERC will allow the public an opportunity to provide written comments on the proposed rate increases before making a final decision. Issued in Tulsa, Oklahoma, this 24th day of June, 1996. Frances R. Gagan, Acting Administrator. [FR Doc. 96-17119 Filed 7-3-96; 8:45 am] BILLING CODE 6450-01-P