[Federal Register Volume 61, Number 200 (Tuesday, October 15, 1996)]
[Notices]
[Pages 53732-53733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26310]


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DEPARTMENT OF ENERGY
Southwestern Power Administration


Proposed Rate Design Development; Notice of Opportunities for 
Public Comment

AGENCY: Southwestern Power Administration, DOE.

SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), is requesting public input for consideration during a 
review of the current Integrated System rate design. Any rate design 
changes ultimately resulting from this review are expected to address 
the requirements and intent of the Federal Energy Regulatory 
Commission's (FERC) Rule 888 on Open Access Transmission Services and 
the Department of Energy's Open Access Transmission Policy setting 
forth the requirement to publish open access wholesale transmission 
tariffs, including ancillary services. During this process, 
Southwestern is seeking comments on recommended alternatives to 
achieving full cost recovery through an effective rate design process.

DATES: A Public Forum has been scheduled for 1:00 p.m. (c.s.t), October 
29, 1996, at Southwestern's offices located in Tulsa, Oklahoma. Written 
comments are due on or before December 13, 1996. Southwestern is 
conducting a public notice and comment period to seek input related to 
alternative approaches to designing cost-based transmission and 
generation rates and ancillary services.

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. Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa, 
Oklahoma 74101, (918) 595-6696.

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, Department of Energy Organization Act, 
Public Law 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 rate 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 Robert 
D. 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 marketed as an isolated 
project under a contract through which the customer, Sam Rayburn 
Municipal Power Agency, receives the entire output of the project as a 
result of funding the construction of the hydroelectric facilities at 
the project. A special rate is developed for the entire output of each 
project based on its isolated condition.
    Following Department of Energy guidance in its response to FERC's 
April 24, 1996, Order No. 888 (Promoting Wholesale Competition Through 
Open Access Non-Discriminatory Transmission Services by Public 
Utilities), Southwestern is reviewing its rate design structure to 
ensure

[[Page 53733]]

compliance with the intent of Order 888 for open access wholesale 
electric transmission rates.
    A Public Forum is scheduled to be held at 1:00 p.m., central 
standard time (c.s.t.) Tuesday, October 29, 1996, in Southwestern's 
offices, room 1402, Williams Center Tower 1, One West Third Street, 
Tulsa, Oklahoma. The Forum is being held to explain the goals of the 
rate design review process and identify areas of specific concern or 
interest to customers and other parties. The Forum will also seek 
comments and opinions regarding potential approaches to the rate design 
of ancillary services and the unbundling of the generation and 
transmission rates. The Forum will be conducted by a chairman who will 
be responsible for orderly procedure. Questions or comments concerning 
potential rate development structures 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.
    A transcript of the Public Forum will be made. Copies of the 
transcript may be obtained from the transcribing service. Copies of all 
documents introduced at the Forum will be available as part of the 
transcript from the transcribing service, for a fee.
    An interested parties list will be developed for those parties that 
are unable to attend the Public Forum, but would like to receive any 
mailings regarding this issue in the future. Please provide mailing 
information to Mr. Forrest E. Reeves at the above address.
    Also, to further ensure an understanding of the information 
furnished at the Forum, a Technical Conference will be convened before 
the end of February 1997. The purpose of this Conference will be to 
review the comments and encourage discussions to help narrow the rate 
design alternatives to those that will best address Southwestern's goal 
to provide the lowest possible rates consistent with sound business 
principles and still achieve full cost recovery for the services 
provided, while meeting the intent of Rule 888. Following this 
conference, Southwestern will complete its rate and repayment process 
and develop rate schedules for the Integrated System based on the rate 
design information developed as a result of this public participation 
process.

    Issued in Tulsa, Oklahoma, this 7th day of October 1996.
Francis R. Gajan,
Acting Administrator.
[FR Doc. 96-26310 Filed 10-11-96; 8:45 am]
BILLING CODE 6450-01-P