[Federal Register Volume 62, Number 188 (Monday, September 29, 1997)]
[Notices]
[Pages 50921-50922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25747]



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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(b), has approved Rate Order No. SWPA-35 which extends the 
existing power rates for the Integrated System. This is an interim rate 
action effective October 1, 1997, and extending for a period of six 
months through March 31, 1998.

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

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, August 8, 1995, and 
September 23, 1996. The rates expire on September 30, 1996.
    The FY 1997 Integrated System Power Repayment Study indicates the 
need for a 3.3 percent ($3,212,635) annual revenue increase. Based on 
the revenue requirement needed to meet repayment criteria, Southwestern 
Power Administration (Southwestern) has announced in the Federal 
Register, on August 22, 1997, its intention to file new Integrated 
System rates and provided for a 90-day public comment period pursuant 
to requirements set forth in 10 CFR 903. In order to provide time in 
which to complete the public participation process and implement the 
new rates by January 1, 1998, Southwestern is seeking a six-month 
extension of current rates. This extension will provide a three-month 
contingency period if unforeseen difficulties should arise that would 
create a delay in the January 1, 1998, implementation date, and 
avoiding the need for an additional extension.
    The Deputy Secretary is authorized to implement such temporary 
extension based on authorities provided in 10 CFR 903.22(h) and 
903.23(b) and Amendment No. 3 to Delegation Order No. 0204-108.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved, Rate Order No. SWPA-35, which extends the 
existing Integrated System rates for six months beginning October 1, 
1997.

    Dated: September 19, 1997.
Elizabeth A. Moler,
Deputy Secretary.

Order Approving Extension of Power Rates on an Interim Basis

(October 1, 1997)

    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 a temporary rate extension. It is made pursuant to the 
authorities as implemented in 10 CFR 903.22(h) and 903.23(b).

Background

    Southwestern Power Administration (Southwestern) currently has 
marketing responsibility for 2.2 million kilowatts of power from 24 
multiple-purpose reservoir projects, with power facilities constructed 
and operated by the U.S. Army Corps of Engineers, generally in all or 
portions of the states of Arkansas, Kansas, Louisiana, Missouri, 
Oklahoma and Texas. 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 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 for one year periods on an interim basis by the 
Deputy Secretary of Energy on August 28, 1994, on August 8, 1995, and 
again on September 23, 1996. These rates are now scheduled to expire 
September 30, 1997.
    Pursuant to implementing authority in 10 CFR 903.22(h) and 
903.23(b), the Deputy Secretary of Energy may extend a FERC-approved 
rate on a temporary basis without advance notice or comment pending 
further action. Southwestern is in the process of its rate development 
and public participation process. The FY 1997 rate development process 
has been expanded to incorporate issues impacting Southwestern with 
respect to the Federal Energy Regulatory

[[Page 50922]]

Commission's Order No. 888 on open transmission access. Consequently, 
an extension of the current rates is needed to provide sufficient time 
in which to comply with the public participation process required by 10 
CFR 903. Southwestern is developing open access tariffs consistent with 
Order No. 888. Southwestern has announced in the Federal Register on 
August 22, 1997, a 90-day public comment period on the FY 1997 proposed 
rates with a planned implementation on January 1, 1998.

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 
Southwestern's plus-or-minus two percent Rate Adjustment Threshold, 
these rate adjustments were deferred in the best interest of the 
government and provided for the subsequent year's PRS to determine the 
appropriate level of revenues needed for the next rate period.
    The FY 1997 PRS indicates the need for an annual revenue increase 
of 3.3 percent ($3,212,635). A rate adjustment of this magnitude, 
together with the need to revise rate schedules to address the intent 
of FERC's Order No. 888, requires a formal rate filing. With existing 
rates expiring on September 30, 1997, Southwestern proposes to extend 
the existing rates for a six-month period ending September 30, 1998, on 
a temporary basis under the implementation authorities noted in 10 CFR 
903.22(h) and 903.23(b) to provide sufficient time to complete the FY 
1997 proposed rate development.
    Southwestern continues to make significant progress toward 
repayment of the Federal investment in the Integrated System. Through 
FY 1996, cumulative amortization for the Integrated System was over 
$369 million, which represents approximately 37 percent of the $1 
billion cumulative Federal investment for the Integrated System. The 
repayment status has increased over 100 percent since the existing 
rates were placed in effect.
    Inquiries regarding this rate extension may be addressed to Forrest 
E. Reeves, Assistant Administrator, Office of Corporate Operations, 
Southwestern Power Administration, One West Third Street, Tulsa, 
Oklahoma 74101-1619.

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 six months, effective October 1, 1997, the current FERC-
approved Integrated System Rates for the sale of power and energy.

    Dated: September 19, 1997.
Elizabeth A. Moler,
Deputy Secretary.
[FR Doc. 97-25747 Filed 9-26-97; 8:45 am]
BILLING CODE 6450-01-P