[Federal Register Volume 62, Number 100 (Friday, May 23, 1997)]
[Notices]
[Pages 28465-28466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13621]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project--Proposed Firm Power Charge and Firm and 
Nonfirm Transmission Service Rate

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed charge and rate adjustment.

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SUMMARY: The Western Area Power Administration (Western) is initiating 
a rate adjustment process for firm power and firm and nonfirm 
transmission service for the Parker-Davis Project (P-DP). The existing 
rate schedules were placed into effect on October 1, 1995, under Rate 
Order WAPA-68 which was approved on a final basis by the Federal Energy 
Regulatory Commission on April 19, 1996. There is a need to modify the 
power repayment study (PRS) and rate design for firm power and firm and 
nonfirm transmission service to provide sufficient revenue to pay all 
annual costs (including interest expense), plus repayment of required 
investment within the allowable time period. The charge/rate impacts 
are detailed in a rate brochure to be distributed to all interested 
parties. The proposed charges/rates for firm power and firm and nonfirm 
transmission service are expected to become effective October 1, 1997.

DATES: Submit comments on or before August 21, 1997. The forum dates 
are:

1. Public information forum, June 10, 1997, 10 a.m., Phoenix, AZ.
2. Public comment forum, July 14, 1997, 10 a.m., Phoenix, AZ.

ADDRESSES: Written comments should be sent to the Western Area Power 
Administration, Desert Southwest Regional Office, 615 South 43rd 
Avenue, Phoenix, Arizona 85009-5313. The public forums will be held at 
the Desert Southwest Regional Office.

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

SUPPLEMENTARY INFORMATION: The proposed Fiscal Year 1998 (FY 1998) 
Generation Charge for P-DP firm power is based on an Annual Net Expense 
Allocated to Generation of $5,616,123. The Calculated Capacity Rate for 
FY 1998 will be $0.90 per kilowatt-month (kW-mo) and the Calculated 
Energy Rate for FY 1998 will be 2.09 mills/kWh. The proposed firm 
transmission service rate for FY 1998 will be $16.16 per kilowatt-year 
(kW-yr) (billed at $1.35 per kW-mo) and the proposed nonfirm 
transmission service rate for FY 1998 will be 3.07 mills/kWh, based on 
Annual Net Expenses Allocated to Transmission of $26,306,972. The P-DP 
proposed rate for transmission service for Salt Lake City Area 
Integrated Projects (Integrated Projects) power customers is $8.08 per 
kilowatt-season ($1.35 per kW-mo) which is one-half of the P-DP 
proposed rate for firm transmission service of $16.16 per kW-yr. The 
proposed charges/rates reflect an increase in the Annual Net Expenses 
from $28,521,763 under the currently approved rates to $31,923,095 in 
the proposed rates.
    Since the proposed changes in the PRS, rate design, and charges/
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 
rates for approval on an interim basis by the Deputy Secretary of DOE.
    Power and transmission rates for the P-DP are established pursuant 
to the Department of Energy Organization Act (42 U.S.C. 7101 et seq.) 
and the Reclamation Act of 1902 (43 U.S.C. 388 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 the Act of May 
28, 1954 (ch. 241, 68 Stat. 143).
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary of Energy 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).

Availability of Information

    All brochures, studies, comments, letters, memoranda, and other 
documents made or kept by Western for the purpose of developing the 
proposed rates for firm power and firm and nonfirm transmission service 
are and will be made available for inspection and copying at Western's 
Desert Southwest Regional Office, located at 615 South 43rd Avenue, 
Phoenix, AZ 85009-5313.

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, 
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 that this action is categorically excluded from 
the preparation of an environmental assessment or an environmental 
impact statement.


[[Page 28466]]


    Dated: May 14, 1997.
J. M. Shafer,
Administrator.
[FR Doc. 97-13621 Filed 5-22-97; 8:45 am]
BILLING CODE 6450-01-P