[Federal Register Volume 61, Number 190 (Monday, September 30, 1996)]
[Notices]
[Pages 51106-51107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24986]
[[Page 51106]]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project--Notice of Firm Power Service Base Charge
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of base charge.
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SUMMARY: Notice is given of the confirmation and approval by the Deputy
Secretary of the Department of Energy (DOE) of the Base Charge and its
components for the Boulder Canyon Project (BCP) firm power service. The
Fiscal Year (FY) 1997 Base Charge and its components for BCP firm power
are based on an Annual Revenue Requirement of $44,437,488. The Base
Charge consists of a rounded energy dollar of $22,976,823 and a rounded
capacity dollar of $21,460,664. This Base Charge and its components are
used for calculating the monthly charges and forecast rates pursuant to
Rate Schedule BCP-F5 as approved by the Federal Energy Regulatory
Commission (FERC) on April 19, 1996 (Rate Order No. WAPA-70).
DATES: The Base Charge and its components, used in calculating the
monthly charges and forecast rates pursuant to Rate Schedule BCP-F5,
will be effective on the first day of the first full billing period
beginning on or after October 1, 1996, and will be in effect through FY
1997.
FOR FURTHER INFORMATION CONTACT:
Mr. J. Tyler Carlson, Regional Manager, Desert Southwest Customer
Service Region, Western Area Power Administration, P.O. Box 6457,
Phoenix, AZ 85005-6457, (602) 352-2453.
Mr. Joel K. Bladow, Assistant Administrator for Power Marketing
Liaison, Western Area Power Administration, Room 8G-027, Forrestal
Building, 1000 Independence Avenue, SW., Washington, DC 20585-0001,
(202) 586-5581.
SUPPLEMENTARY INFORMATION: The Base Charge and its components were
calculated in accordance with the methodology approved under Rate Order
WAPA-70. The Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions, 10 CFR Part 903, have
been followed by Western Area Power Administration (Western) in
determining the Base Charge and its components. The following
summarizes the steps taken by Western to ensure involvement of all
interested parties in the determination of the Base Charge and its
components:
1. Discussion of the proposed Base Charge and its components was
initiated at an informal BCP Contractor meeting held on May 9, 1996, in
Phoenix, Arizona. At this informal meeting, representatives from
Western and the Bureau of Reclamation (Reclamation) explained the basis
for estimates used in the calculation of the Base Charge and its
components. A question and answer session was convened for those
persons attending.
2. A Federal Register Notice (FRN) was published on May 22, 1996
(61 FR 25664), officially announcing the proposed Base Charge
adjustment process, initiating the public consultation and comment
period, announcing the public information and public comment forums,
and presenting procedures for public participation.
3. On June 7, 1996, a letter was mailed from Western's Desert
Southwest Customer Service Regional Office to all BCP customers and
other interested parties. The letter provided a copy of the BCP
Proposed Rate Adjustment data, dated June 1996, which included a copy
of the FRN of May 22, 1996.
4. At the public information forum held on June 13, 1996, in
Phoenix, Arizona. Western and Reclamation representatives explained the
proposed Base Charge and its components for Rate Year 1997 in greater
detail. A question and answer session was convened for those persons
attending.
5. A public comment forum was held on July 15, 1996, in Phoenix,
Arizona, to give the public an opportunity to comment for the record.
Five persons representing customers and customer groups made oral
comments.
6. Ten comment letters were received during the 92-day consultation
and comment period. The consultation and comment period ended August
22, 1996. All formally submitted comments have been considered in the
preparation of this FRN.
Most of the comments received during the public meetings or in the
written correspondence dealt with the Visitor Facilities, hydrology,
and the BCP Initial Audit.
All comments were considered in developing the Base Charge for FY
1997. The comments and responses, paraphrased for brevity, are
presented below.
Hydrology
Issue: A request was made, asking that if the Master Schedule for
FY 97 is revised to reflect excess energy prior to the end of the rate
process, that it be used as the final Master Schedule for determining
the monthly energy ratios used to calculate the monthly energy charge.
Response: If Reclamation notifies Western of changes which result
in a revision of the Master Schedule for FY 97 prior to the start of
the fiscal year, Western will use the revised Master Schedule to
determine the monthly energy ratios used to calculate the monthly
energy charge.
Visitor Facilities
Issue: Concern was expressed regarding the potential for the BCP
customers being required to pay as much as $31 million as a result of
the suit filed in the Federal Claims Court by the PCL Company. Several
commentors stated that they believed that the BCP rates should not be
required to recover these costs.
Response: The Engineering and Operations Committee (E&OC) has
agreed to include the cost of defending the Government's position
regarding the PCL claim as part of the total Visitor Facilities costs.
Western, Reclamation, and BCP Contractors will address the issue of any
settlement or judgement costs if they are incurred by the Government.
Cost Containment
Issue: A request was made that the O&M expenses for both Western
and Reclamation be thoroughly reviewed by the E&OC and the Ten Year
Planning Committees. A goal of the review should be to see if high cost
activities could be spread out over more than 2 years and that these
costs are accounted for in the proper category (i.e., O&M,
replacements, etc).
Response: Western and Reclamation are committed to working with the
E&OC and the Ten Year Planning Committees to thoroughly review all O&M
and replacement activities. During the review of O&M and replacement
activities, Western and Reclamation will attempt to spread out the
expenditure schedules for high cost activities where feasible.
Issue: Western and Reclamation were cautioned that even though the
water forecasts project a water surplus condition over the next 5
years, they should not stop their efforts in cost containment and
finding alternative revenues.
Response: Western and Reclamation have committed to continue with
the various partnership activities with the BCP Contractors in keeping
the BCP costs down.
BCP Initial Audit
Issue: Concern was expressed over when the various recommendations
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from the BCP Initial Audit were going to be implemented. When was the
power repayment spreadsheet study going to be modified? All parties
were encouraged to accomplish this as soon as possible.
Response: Western and Reclamation are working with the BCP
Contractors and the auditors to resolve and implement the
recommendations from the BCP Initial Audit. There has been an on-going
effort in researching and reconciling the financial records with the
PRSS. Until the research is completed for such items as revenues,
expenses and cash, adjustments to the PRSS and the financial records
cannot be accomplished. It is Western's intent to have all research,
reconciliations, adjustments to financial records, and modifications to
the PRSS accomplished by the end of the FY 1997 rate process.
Project Partnership
Issue: Several commentors expressed their appreciation to Western
and Reclamation for their cooperative efforts in keeping the costs as
low as possible. They stated that they hoped that Western and
Reclamation would continue with those efforts.
Response: Western and Reclamation reaffirmed their commitment to
maintaining the cooperative spirit and partnership with the BCP
customers.
Power Repayment Spreadsheet Study
Issue: A request was made, asking that supporting schedules
separate Reclamation's O&M costs attributable to Hoover Dam and
appurtenances, from the O&M costs attributable to the power plant.
Response: As stated in the data request response mailed July 2,
1996, Reclamation's O&M cost accounts are set up to reflect the FERC
classifications. Reclamation's accounting system does not distinguish
between costs associated with the dam and appurtenances, and costs
associated with the power plant; therefore, this information cannot be
provided.
By Amendment No. 3 to Delegation Order No. 0204-108, published
November 10, 1993 (58 FR 59716), the Secretary of Energy (Secretary)
delegated (1) the authority to develop long-term power and transmission
rates on a nonexclusive basis to the Administrator of Western; (2) the
authority to confirm, approve, and place such rates into effect on an
interim basis to the Deputy Secretary; and (3) the authority to
confirm, approve, and place into effect on a final basis, to remand, or
to disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR Part 903) became
effective on September 18, 1985 (50 FR 37835).
These charges and rates are established pursuant to section 302(a)
of the DOE Organization Act, 42 U.S.C. 7152(a), through which the power
marketing functions of the Secretary of the Interior and Reclamation
under the Reclamation Act of 1902, 43 U.S.C. 371 et seq., as amended
and supplemented by subsequent enactments, particularly section 9(c) of
the Reclamation Project Act of 1939, 43 U.S.C. 485h(c), and other acts
specifically applicable to the project system involved, were
transferred to and vested in the Secretary.
Issued in Washington, DC, September 23, 1996.
Charles B. Curtis,
Deputy Secretary.
[FR Doc. 96-24986 Filed 9-27-96; 8:45 am]
BILLING CODE 6450-01-P