[Federal Register Volume 62, Number 88 (Wednesday, May 7, 1997)]
[Notices]
[Pages 24913-24914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11849]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project--Proposed Firm Power Service Base Charge

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed base charge adjustment.

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SUMMARY: The Western Area Power Administration (Western) is announcing 
the Fiscal Year 1997 annual rate adjustment process for Fiscal Year 
1998 Rates under Rate Order WAPA-70 for firm power service for the 
Boulder Canyon Project (BCP). The annual rate adjustments are a 
requirement of the ratesetting methodology of WAPA-70 which was 
approved on a final basis by the Federal Energy Regulatory Commission 
(FERC) on April 19, 1996. The existing rate schedule was placed into 
effect on November 1, 1995. The power repayment spreadsheet study 
indicates the proposed Base Charge herein for BCP firm power service is 
necessary to provide sufficient revenue to pay all annual costs 
(including interest expense), plus repayment of required investment 
within the allowable time period. The proposed Base Charge for firm 
power service is expected to become effective October 1, 1997.

DATES: Submit comments on or before August 5, 1997. The forums dates 
are:
    1. Public information forum, May 15, 1997, 9:30 a.m.
    2. Public comment forum, June 12, 1997, 9:30 a.m.

ADDRESSES: Written comments should be sent to Western Area Power 
Administration, Desert Southwest Regional Office, 615 South 43rd 
Avenue, Phoenix, Arizona 85009. The public forums at the Desert 
Southwest Regional Office will be held in Conference rooms 2 and 3.

FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Regional 
Manager, (602) 352-2453 or Mr. Anthony H. Montoya, Assistant Regional 
Manager, Power Marketing, (602) 352-2789.

SUPPLEMENTARY INFORMATION: The proposed Base Charge for BCP firm power 
is based on an Annual Revenue Requirement of $43,241,130. The Base 
Charge consists of an Energy Dollar of $22,408,332 and a Capacity 
Dollar of $20,832,797. The Forecast Energy Rate will be 4.9785 mills/
kilowatthour (mills/kWh); Forecast Capacity Rate will be $0.8898 per 
kilowatt per month ($/kW-mo).
    The existing BCP firm power Base Charge is based on an Annual 
Revenue

[[Page 24914]]

Requirement of $44,437,488, consisting of an Energy Dollar of 
$22,976,824 and a Capacity Dollar of $21,460,664. The existing BCP 
Forecast energy rate is 5.28 mills/kWh and forecast capacity rate is 
$0.92/kW-mo.
    Since the proposed rates constitute a major rate adjustment as 
defined by the procedures for public participation in general rate 
adjustments, as cited below, both a public information forum and a 
public comment forum will be held. After review of public comments, 
Western will recommend proposed charges/rates for approval on a final 
basis by the Deputy Secretary of DOE pursuant to Rate Order No. WAPA-
70.
    The power rates for the BCP are established pursuant to the 
Department of Energy Organization Act (42 U.S.C. 7101 et seq.), the 
Reclamation Act of 1902 (43 U.S.C. 391 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)), the Colorado River 
Basin Project Act of 1968 (43 U.S.C. 1501 et seq.), the Colorado River 
Storage Project Act (43 U.S.C. 620 et seq.), the Boulder Canyon Project 
Act (43 U.S.C. 617 et seq.), the Boulder Canyon Project Adjustment Act 
(43 U.S.C. 618 et seq.), the Hoover Power Plant Act of 1984 (43 U.S.C. 
619 et seq.), the General Regulations for Power Generation, Operation, 
Maintenance, and Replacement at the Boulder Canyon Project, Arizona/
Nevada (43 CFR part 431) published in the Federal Register at 51 FR 
23960 on July 1, 1986, and the General Regulations for the Charges for 
the Sale of Power From the Boulder Canyon Project, Final Rule (10 CFR 
part 904) published in the Federal Register at 50 FR 37837 on September 
18, 1985, and the DOE financial reporting policies, procedures, and 
methodology (DOE Order No. RA 6120.2 dated September 20, 1979).
    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 power rates to FERC.

Availability of Information

    All brochures, studies, comments, letters, memorandums, and other 
documents made or kept by Western for the purpose of developing the 
proposed rates for energy and capacity are and will be made available 
for inspection and copying at Western's Desert Southwest Regional 
Office, 615 South 43rd Avenue, Phoenix, Arizona 85009.

Determination Under Executive Order 12866

    DOE has determined that this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of this notice 
by the Office of Management and Budget is required.

Environmental Evaluation:

    In compliance with the National Environmental Policy Act of 1969 
(NEPA), 42 U.S.C. 4321 et seq.; Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR 
part 1021), Western has determined this action is categorically 
excluded from the preparation of an environmental assessment or an 
environmental impact statement.

    Dated: April 29, 1997.
J. M. Shafer,
Administrator
[FR Doc. 97-11849 Filed 5-6-97; 8:45 am]
BILLING CODE 6450-01-P