[Federal Register Volume 63, Number 111 (Wednesday, June 10, 1998)]
[Notices]
[Page 31767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15455]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Proposed Extension.

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SUMMARY: The Current Sam Rayburn Dam Project rate was approved by the 
Federal Energy Regulatory Commission (FERC) on December 7, 1994, Docket 
No. EF94-4021-000. These rates are effective October 1, 1994, through 
September 30, 1998. The Administrator, Southwestern, has prepared 
Current and Revised 1998 Power Repayment Studies for the Sam Rayburn 
Dam Project which show the need for a minor rate adjustment of $3,732 
(0.2 percent decrease) in annual revenues. In accordance with 
Southwestern's rate adjustment threshold, dated June 23, 1987, the 
Administrator, Southwestern, may determine, on a case by case basis, 
that for a revenue decrease or increase in the magnitude of two 
percent, deferral of a formal rate filing is in the best interest of 
the Government. Also, the Deputy Secretary of Energy has the authority 
to extend rates, previously confirmed and approved by FERC, on an 
interim basis, pursuant to 10 CFR Sections 903.22(h) and 902.23(a)(3). 
In accordance with DOE rate extension authority and Southwestern's rate 
adjustment threshold, the Administrator is proposing that the rate 
adjustment be deferred and that the current rates be extended for a 
one-year period effective through September 30, 1999.

DATES: Written comments are due on or before July 10, 1998.

ADDRESSES: Written comments should be submitted to the Administrator, 
Southwestern Power Administration, U.S. Department of Energy, P.O. Box 
1619, Tulsa, Oklahoma 74101.

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, (918) 595-6696.

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, Department of Energy Organization Act, 
Pub. L. 95-91, dated August 4, 1977, and Southwestern's power marketing 
activities were transferred from the Department of the Interior to the 
Department of Energy, effective October 1, 1977.
    Southwestern markets power from 24 multiple-purpose reservoir 
projects with power facilities constructed and operated by the U.S. 
Army Corps of Engineers. These projects are located in the States of 
Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area 
includes these states plus Kansas and Louisiana. Of the total, 22 
projects comprise an Integrated System and are interconnected through 
Southwestern's transmission system and exchange agreements with other 
utilities. The other two projects (Sam Rayburn and Robert Douglas 
Willis) are not interconnected with Southwestern's Integrated System. 
Instead, their power is marketed under separate contracts through which 
two customers purchase the entire power output of each of the projects 
at the dams. Following Department of Energy Order Number RA 6120.2, the 
Administrator, Southwestern, prepared a 1998 Current Power Repayment 
Study (PRS) using the existing Sam Rayburn Dam Project rate schedule. 
The PRS shows the cumulative amortization through FY 1997 at 
$12,156,954 on a total investment of $25,676,015. The FY 1998 Revised 
PRS indicates the need for a decrease in annual revenues of $3,732, or 
0.2 percent, lower than the present annual revenues.
    As a matter of practice, Southwestern would defer an indicated rate 
adjustment that falls within Southwestern's plus-or-minus two percent 
rate adjustment threshold. The threshold was developed to add 
efficiency to the process of maintaining adequate rates and is 
consistent with cost recovery criteria within DOE Order Number RA 
6120.2 regarding rate adjustment plans. The Sam Rayburn Dam Project's 
FY 1997 (last year's) PRS concluded that the annual revenues needed to 
be decreased by 0.1 percent. At that time, it was determined prudent to 
defer the decrease in accordance with the established threshold and the 
current rate schedule was continued for one year. It once again seems 
prudent to defer this rate adjustment of 0.2 percent, or $3,732 per 
year in accordance with Southwestern's rate adjustment threshold and 
reevaluate the ability of the existing rate to provide sufficient 
revenues to satisfy costs projected in the FY 1999 (next year's) PRS.
    On December 7, 1994, the current rate schedule for the Sam Rayburn 
Dam Project was confirmed and approved by the FERC on a final basis for 
a period that will end on September 30, 1998. In accordance with 10 CFR 
Sections 903.22(h) and 903.23(a)(3), the Deputy Secretary may extend 
existing rates on an interim basis beyond the period specified by the 
FERC. As a result of the benefits obtained by a rate adjustment 
deferral (reduced Federal expense and rate stability) and the Deputy 
Secretary's authority to extend a previously approved rate, 
Southwestern's Administrator is proposing to extend the current Sam 
Rayburn Dam Project rate schedule. The schedule is to be effective for 
the one-year period beginning October 1, 1998, and extending through 
September 30, 1999.
    Opportunity is presented for customers and interested parties to 
receive copies of the study data for the Sam Rayburn Dam Project. If 
you desire a copy of the Repayment Study Data Package for the Sam 
Rayburn Dam Project, please submit your request to: Mr. Forrest E. 
Reeves, Assistant Administrator, Office of Corporate Operations, P.O. 
Box 1619, Tulsa, OK 74101, or call (918) 595-6696.
    Following review of the written comments (absent any substantive 
reasons to do otherwise), the Administrator will submit the rate 
extension proposal for the Sam Rayburn Dam Project to the Deputy 
Secretary of Energy for confirmation and approval.

    Issued in Tulsa, Oklahoma, this 22nd day of May, 1998.
Michael A. Deihl,
Administrator.
[FR Doc. 98-15455 Filed 6-9-98; 8:45 am]
BILLING CODE 6450-01-P