[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Pages 14087-14090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7607]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Proposed Rates, Public Forums, and Opportunities for Public 
Review and Comment for Georgia-Alabama-South Carolina System of 
Projects

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of proposed rate adjustment.

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SUMMARY: Southeastern Power Administration (Southeastern) proposes to 
revise existing schedules of rates and charges applicable to the sale 
of power from the Georgia-Alabama-South Carolina System of Projects 
effective for a 5-year period, October 1, 1998, through September 30, 
2003. Additionally, opportunities will be available for interested 
persons to review the present rates, the proposed rates and supporting 
studies, to participate in a forum and to submit written comments. 
Southeastern will evaluate all comments received in this process.

DATES AND ADDRESSES: Written comments are due on or before June 22, 
1998. Public information and comment forums will be held in College 
Park, Georgia, on April 29, 1998 and in Columbia, South Carolina on 
April 30, 1998. Persons desiring to speak at a forum should notify 
Southeastern at least 3 days before the forum is scheduled, so that a 
list of forum participants can be prepared. Others may speak if time 
permits. Five copies of written comments should be submitted to: 
Administrator, Southeastern Power Administration, Department of Energy, 
Samuel Elbert Building, Elberton, Georgia, 30635. The public 
information and comment forums will begin at 10:00 A.M. on April 29, 
1998 at the Georgia International Convention Center, 1902 Sullivan 
Road, College Park Georgia, 30337, (770) 907-3566, and at 10:00 A.M. on 
April 30, 1998 at the Embassy Suite Greystone, 200 Stoneridge Drive, 
Columbia, South Carolina 29210, (803) 252-8700.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance and Marketing, Southeastern Power 
Administration, Department of Energy, Samuel Elbert Building, Elberton, 
Georgia, 30635, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission 
(FERC) by order issued March 18, 1994, in Docket No. EF93-3011-000, 
confirmed and approved Wholesale

[[Page 14088]]

Power Rate Schedules GA-1-D, GA-2-D, GA-3-C, GU-1-D, ALA-1-H, ALA-3-D, 
MISS-1-H, MISS-2-D, SC-3-C, SC-4-B, CAR-3-C, SCE-2-C, and GAMF-3-B 
applicable to Georgia-Alabama-South Carolina System of Projects' power 
for a period ending September 30, 1998.

Discussion

    Existing rate schedules are predicated upon a June 1993 repayment 
study and other supporting data contained in FERC Docket No. EF93-3011-
000. The current repayment study dated February 1998 shows that 
existing rates are not adequate to recover all costs required by 
present repayment criteria. Southeastern is proposing to establish 
rates that will recoup these unrecovered costs.
    A revised repayment study with a revenue increase of $14.6 million 
in FY 1999 and future years over the current repayment study shows that 
all costs are repaid within their service life. Therefore, Southeastern 
is proposing to revise the existing rates to generate this additional 
revenue. The increase is primarily due to increasing Corps O&M 
expenses, SEPA marketing expenses, retirement and pension benefit 
expenses not previously recovered, and the interest on and repayment of 
the capital investment associated with rehabilitation of projects in 
the Georgia-Alabama-South Carolina System.
    An additional study dated February 1998 that includes costs related 
to the pumping units at the Richard B. Russell Project, which are 
expected to be declared commercially operable July of 1998, shows that 
the proposed rates in the revised repayment study discussed in the 
preceding paragraph will not be adequate to recover these costs. 
Southeastern is proposing alternate new rates that will recover these 
costs. These rates are to become effective October 1, 1998, if the pump 
storage units are declared commercially operable from the date of this 
notice to September 30, 1998. If the pump storage units are not 
declared commercially operable on or before September 30, 1998, these 
rates will not apply. Southeastern is proposing two versions of these 
alternate rates. In the first version, the entire adjustment due to the 
Russell pump storage units would go into effect October 1, 1998. In the 
second version, the rate adjustment would be phased-in over a five-year 
period.
    A revised repayment study with rates designed to produce an annual 
revenue increase of $38.8 million in FY 1999 and all future years over 
the revised repayment study discussed above shows that all costs, 
including costs associated with the pump storage units at the Richard 
B. Russell Project, are repaid within their repayment life. Therefore, 
Southeastern is proposing these rates to go into effect October 1, 
1998, if the Richard B. Russell Pump Storage Units are declared 
commercially operable on or before September 30, 1998. Southeastern is 
also proposing and requesting comments on a second version of these 
rates that phases in the adjustment of five year period from October 1, 
1998, to October 1, 2002.

Proposed Unit Rates

    Southeastern is proposing the following rate schedules to be 
effective for the period from October 1, 1998 through September 30, 
2003.

Rate Schedule SOCO-1

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida to whom power may be wheeled and scheduled 
pursuant to contracts between the Government and Southern Company 
Services, Incorporated.

Rate Schedule SOCO-2

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida to whom power may be wheeled pursuant to 
contracts between the Government and Southern Company Services, 
Incorporated. The customer is responsible for providing a scheduling 
arrangement with the Government.

Rate Schedule SOCO-3

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida to whom power may be scheduled pursuant to 
contracts between the Government and Southern Company Services, 
Incorporated. The customer is responsible for providing a transmission 
arrangement.

Rate Schedule SOCO-4

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida. The customer is responsible for providing a 
scheduling arrangement with the Government and for providing a 
transmission arrangement.

Rate Schedule ALA-1-I

    Available to the Alabama Electric Cooperative, Incorporated.

Rate Schedule MISS-1-I

    Available to the South Mississippi Electric Power Association to 
whom power may be wheeled pursuant to contract between the Government 
and Alabama Electric Cooperative, Inc.

Rate Schedule Duke-1

    Available to public bodies and cooperatives in North Carolina and 
South Carolina to whom power may be wheeled and scheduled pursuant to 
contracts between the Government and Duke Power Company.

Rate Schedule Duke-2

    Available to public bodies and cooperatives in North Carolina and 
South Carolina to whom power may be wheeled pursuant to contracts 
between the Government and Duke Power Company. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule Duke-3

    Available to public bodies and cooperatives in North Carolina and 
South Carolina to whom power may be scheduled pursuant to contracts 
between the Government and Duke Power Company. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule Duke-4

    Available to public bodies and cooperatives in North Carolina and 
South Carolina served through the transmission facilities of Duke Power 
Company. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule Santee-1

    Available to public bodies and cooperatives in South Carolina to 
whom power may be wheeled and scheduled pursuant to contracts between 
the Government and South Carolina Public Service Authority.

Rate Schedule Santee-2

    Available to public bodies and cooperatives in South Carolina to 
whom power may be wheeled pursuant to contracts between the Government 
and South Carolina Public Service Authority. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule Santee-3

    Available to public bodies and cooperatives in South Carolina to 
whom power may be scheduled pursuant to contracts between the 
Government and South Carolina Public Service Authority. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule Santee-4

    Available to public bodies and cooperatives in South Carolina 
served

[[Page 14089]]

through the transmission facilities of South Carolina Public Service 
Authority. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule SCE&G-1

    Available to public bodies and cooperatives in South Carolina to 
whom power may be wheeled and scheduled pursuant to contracts between 
the Government and South Carolina Electric & Gas Company.

Rate Schedule SCE&G-2

    Available to public bodies and cooperatives in South Carolina to 
whom power may be wheeled pursuant to contracts between the Government 
and South Carolina Electric & Gas Company. The customer is responsible 
for providing a scheduling arrangement with the Government.

Rate Schedule SCE&G-3

    Available to public bodies and cooperatives in South Carolina to 
whom power may be scheduled pursuant to contracts between the 
Government and South Carolina Electric & Gas Company. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule SCE&G-4

    Available to public bodies and cooperatives in South Carolina 
served through the transmission facilities of South Carolina Electric & 
Gas Company. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule Pump-1

    Available to all customers of the Georgia-Alabama-South Carolina 
System and applicable to energy from pumping operations at the Carters 
Project.

Rate Schedule Pump-2

    Available to all customers of the Georgia-Alabama-South Carolina 
System and applicable to energy from pumping operations at the Richard 
B. Russell Project.
    The proposed rates, provided the pumping units at the Richard B. 
Russell are not declared commercially operable on or before September 
30, 1998, for capacity, energy, and generation services are as follows:

Capacity: $3.08 per kW per month
Energy: 7.73 mills per kWh
Generation Services: $0.09 per kW per month.

    The rates for transmission, scheduling, reactive supply, and 
regulation and frequency response are illustrated in Table 1. 
1
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    \1\ The transmission, scheduling, reactive, and regulation 
charges for each schedule are the rates charged for these services 
by the appropriate facilitator. All transmission, scheduling, 
reactive, and regulation rates in this notice are based on the 
current rates as of the date of this notice and are subject to 
revision.

Table 1.--Southeastern Power Administration Proposed Rates for Transmission Scheduling, Reactive, and Regulation
                                                     Charges                                                    
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                                                   Transmission     Scheduling       Reactive       Regulation  
                 Rate  schedule                    charge  $/KW/   charge  $/KW/   charge $/KW/    charge $/KW/ 
                                                       month           month           month           month    
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SOCO-1..........................................            1.70          .07658          .16627          .24714
SOCO-2..........................................            1.70          .07658          .16627             N/A
SOCO-3..........................................             N/A          .07658             N/A          .24714
SOCO-4..........................................             N/A          .07658             N/A             N/A
ALA-1-I.........................................             N/A          .07658             N/A             N/A
MISS-1-I........................................            1.83             N/A             N/A             N/A
Duke-1..........................................            1.15             N/A             N/A             N/A
Duke-2..........................................            1.15             N/A             N/A             N/A
Duke-3..........................................             N/A             N/A             N/A             N/A
Duke-4..........................................             N/A             N/A             N/A             N/A
Santee-1........................................            1.53             N/A             N/A             N/A
Santee-2........................................            1.53             N/A             N/A             N/A
Santee-3........................................             N/A             N/A             N/A             N/A
Santee-4........................................             N/A             N/A             N/A             N/A
SCE&G-1.........................................            2.22             N/A             N/A             N/A
SCE&G-2.........................................            2.22             N/A             N/A             N/A
SCE&G-3.........................................             N/A             N/A             N/A             N/A
SCE&G-4.........................................             N/A             N/A             N/A             N/A
Pump-1..........................................             N/A             N/A             N/A             N/A
Pump-2..........................................             N/A             N/A             N/A             N/A
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    Should the pump storage units at the Richard B. Russell Project be 
declared commercially operable on or before September 30, 1998, 
Southeastern is proposing and requesting comments on two versions of 
capacity and energy rates that would apply. In either version, the rate 
for Generation Services remains $0.09 per kW per month. The rates for 
Transmission, Scheduling, Reactive, and Regulation Services remain 
unchanged from the rates shown in Table 1. In the first version, rates 
for capacity and energy for the period from October 1, 1998, to 
September 30, 2003, are as follows:

Capacity: $3.57 per kw per month
Energy: 10.14 mills per kWh.

    In the second version, the rates for capacity and energy are as 
follows:

------------------------------------------------------------------------
                                                  Capacity      Energy  
                    Period                      ($kw/month)  (mills/kWh)
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October 1, 1998 to September 30, 1999.........         3.20         8.33
October 1, 1999 to September 30, 2000.........         3.33         8.94
October 1, 2000 to September 30, 2001.........         3.45         9.54
October 1, 2001 to September 30, 2002.........         3.57        10.14

[[Page 14090]]

                                                                        
October 1, 2002 to September 30, 2003.........         3.65        10.35
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    The referenced repayment studies are available for examination at 
the Samuel Elbert Building, Elberton, Georgia 30635. Proposed Rate 
Schedules SOCO-1, SOCO-2, SOCO-3, SOCO-4, ALA-1-I, MISS-1-I, Duke-1, 
Duke-2, Duke-3, Duke-4, Santee-1, Santee-2, Santee-3, Santee-4, SCE&G-
1, SCE&G-2, SCE&G-3, SCE&G-4, Pump-1, and Pump-2, are also available.

    Dated: March 16, 1998.
Charles A. Borchardt,
Administrator.
[FR Doc. 98-7607 Filed 3-23-98; 8:45 am]
BILLING CODE 6450-01-P