[Federal Register Volume 61, Number 190 (Monday, September 30, 1996)]
[Notices]
[Pages 51102-51103]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24984]


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DEPARTMENT OF ENERGY
Southwestern Power Administration


Integrated System Power Rates

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of extension.

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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-34 which extends the 
existing power rates for the Integrated System. This is an interim rate 
action effective October 1, 1996, extending for a period of one year 
through September 30, 1997.

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) 595-6628.

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 by 
the Deputy Secretary of Energy on August 24, 1994, and on August 8, 
1995. The rates are scheduled to expire on September 30, 1996. On July 
2, 1996, the Southwestern Power Administration (Southwestern) published 
notice in the Federal Register, 61 FR 34432, of its intention to seek a 
one-year extension of the existing power rates 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.

    Issued at Washington, DC, this 23rd day of September, 1996.
Charles B. Curtis,
Deputy Secretary.

Department of Energy

Deputy Secretary of Energy

    In the matter of: Southwestern Power Administration--Integrated 
System Rates

[Rate Order No. SWPA-34]

Order Approving Extension of Power Rates on an Interim Basis

September 23, 1996.
    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 re-delegated 
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, generally in all or portions of 
the states of Arkansas, Kansas, Louisiana, Missouri, Oklahoma and 
Texas, with power facilities constructed and operated by the U.S. Army 
Corps of Engineers. The Integrated System, comprised 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

[[Page 51103]]

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 by the Deputy Secretary of 
Energy on August 28, 1994, and again on August 8, 1995. The rates are 
scheduled to expire September 30, 1996. The FY 1996 Integrated System 
PRSs indicate the need for a rate adjustment of $1,239,868 annually, or 
1.3 percent.
    Pursuant to implementing authority in 10 CFR 903.22(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 July 2, 1996, 61 FR 34432, announcing 
a 15-day period for public review and comment concerning the proposed 
interim rate extension. In addition, meetings that discussed the 
proposal were held with customer representatives in April and July 
1996. Written comments were accepted through July 17, 1996. 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 1996 PRS indicates the need for an annual revenue increase 
of 1.3 percent. As has been the case since the existing rates were 
approved, the FY 1996 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, 1996. Consequently, Southwestern proposes to extend the 
existing rates for a one-year period ending September 30, 1997, 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 1995, status of repayment for the Integrated System was 
$355,572,353, which represents approximately 36 percent of the 
$982,272,106 Federal investment for the Integrated System. The status 
has increased almost 82 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, 1996, the current FERC-
approved Southwestern Power Administration Integrated System Rates.

    Issued at Washington, DC, the 23rd day of September 1996.
Charles B. Curtis,
Deputy Secretary.
[FR Doc. 96-24984 Filed 9-27-96; 8:45 am]
BILLING CODE 6450-01-P