[Federal Register Volume 63, Number 64 (Friday, April 3, 1998)]
[Notices]
[Pages 16497-16498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8762]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pacific Northwest-Pacific Southwest Intertie Project--Point-to-
Point Transmission Services Rates for the 230/345-kV Transmission 
System

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed rate adjustments.

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SUMMARY: The Western Area Power Administration's (Western) Desert 
Southwest Region (DSW) is initiating a rate adjustment process for 
point-to-point transmission services on the 230/345-kV system of the 
Pacific Northwest-Pacific Southwest Intertie Project (AC Intertie). 
This action is necessary to recover annual costs (including interest 
expense) and capital requirements. The existing rate schedule was 
placed into effect on February 1, 1996, under Rate Order WAPA-71 which 
was approved on a final basis by the Federal Energy Regulatory 
Commission (FERC) on July 24, 1996.
    The proposed rate and its impact are explained in greater detail in 
a rate brochure which will be made available to all interested parties. 
Network transmission services and ancillary services which comply with 
FERC Order Nos. 888 and 888a may be obtained through Western's Open 
Access Tariff published on January 6, 1998 (63 FR 521).
    The proposed rate is scheduled to go into effect on October 1, 
1998. This Federal Register notice initiates the formal process for the 
proposed rate.

DATES: Submit comments on or before July 2, 1998. The forum dates are:

1. Public information forum, May 4, 1998, 10 a.m. MST, Phoenix, 
Arizona.
2. Public comment forum, June 1, 1998, 10 a.m. MST, Phoenix, Arizona.

ADDRESSES: Written comments should be sent to Mr. J. Tyler Carlson, 
Regional Manager, Desert Southwest Customer Service Region, Western 
Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457. The 
public forums will be held at the Desert Southwest Regional Office, 615 
South 43rd Avenue, Phoenix, Arizona.

FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602) 
352-2768.

SUPPLEMENTARY INFORMATION:

Proposed AC Intertie Transmission Rate

    The proposed firm transmission service rate for the AC Intertie 
230/345-kV transmission system is $12.00 per kilowattyear (kWyr). The 
existing rate is $6.58 per kWyr. The proposed rate represents an 82-
percent increase. The increase in the rate is necessary to demonstrate 
repayment for the 230/345-kV transmission system and the 500-kV 
transmission system. Looking at the AC Intertie as a whole, two primary 
issues have prompted the proposed rate. First, costs from the planning 
phase of the canceled Northwest portion of the project must be repaid. 
In 1969, the Department of the Interior discontinued its funding prior 
to completion. When the Pacific Northwest participants subsequently 
withdrew support, a decision was made to abandon the project. The 
proposed transmission rate accounts for the recovery of the abandoned 
project costs.
    The second issue is revenue from firm transmission service on the 
500-kV transmission system is less than projected. Western has 
estimated that it will take approximately 10 years for the 500-kV 
transmission system to be subscribed to a level sufficient to meet 
revenue repayment requirements. Western's AC Intertie Power Repayment 
Study (PRS) reflects a revenue contribution for the 500-kV transmission 
system equivalent to the sale of 62.5 megawatts (MW) during the first 
year, increased by 100 MW each year during the 10-year period. The 
study concludes that the proposed rate for firm transmission service on 
the 230/345-kV AC Intertie transmission system is necessary to meet 
repayment requirements of the AC Intertie Project over this 10-year 
period.
    Western proposes, through this rate adjustment process, to 
supersede only the rate for firm point-to-point transmission service on 
the 230/345-kV system placed in effect under Rate Order WAPA-71. The 
rate for firm point-to-point transmission service on the 230/345-kV 
system includes the cost for the scheduling, system control and 
dispatch service.

Authorities

    Since the proposed rates constitute a major rate adjustment as 
defined in 10 CFR 903.2, both a public information forum and a public 
comment forum will be held. After review of public comments, Western 
will recommend the proposed rates or revised proposed rates for 
approval on an interim basis by the Deputy Secretary of DOE.

[[Page 16498]]

    The proposed point-to-point transmission service rates for the 230/
345-kV AC Intertie system are being 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. 371, 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 section 8 of 
the Act of August 31, 1964 (16 U.S.C. 837g).
    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 in 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 the FERC. Existing DOE procedures for public participation in 
power rate adjustments (10 CFR Part 903) became effective on September 
18, 1985 (50 FR 37835).

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, requires 
Federal agencies to perform a regulatory flexibility analysis if a 
proposed rule is likely to have a significant economic impact on a 
substantial number of small entities. Western has determined that this 
action relates to rates or services offered by Western and therefore, 
is not a rule within the purview of the Act.

Environmental Compliance

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

Determination Under Executive Order 12866

    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.

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 will be made available for inspection and copying at 
Western's Desert Southwest Regional Office, 615 South 43rd Avenue, 
Phoenix, Arizona.

    Dated: March 25, 1998.
Michael S. Hacskaylo,
Acting Administrator.
[FR Doc. 98-8762 Filed 4-2-98; 8:45 am]
BILLING CODE 6450-01-P