[Federal Register Volume 63, Number 159 (Tuesday, August 18, 1998)]
[Notices]
[Pages 44250-44251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22185]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--Notice of Proposed Extension of the Firm 
Electric Service Rate Order No. WAPA-82

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Extension of Firm Electric Service Rate.

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SUMMARY: This action is a proposal to extend the existing Loveland Area 
Projects (LAP) firm electric service rate, Rate Order No. WAPA-51, 
through January 31, 2001. The existing firm electric service rate will 
expire January 31, 1999. This notice of proposed extension of a rate is 
issued pursuant to 10 CFR Part 903.23(a)(1). In accordance with 10 CFR 
Part 903.23(a)(2) Western will not have a consultation and comment 
period.

FOR FURTHER INFORMATION CONTACT: Mr. Daniel T. Payton, Rates Manager, 
Rocky Mountain Customer Service Region, Western Area Power 
Administration, P.O. Box 3700, Loveland, CO 80539-3003, (970) 490-7442, 
or e-mail ([email protected]).

SUPPLEMENTARY INFORMATION: 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 the 
Western Area Power Administration (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 the Federal Energy Regulatory Commission (FERC).
    Pursuant to Delegation Order No. 0204-108 and existing Department 
of Energy procedures for public participation in firm electric service 
rate adjustments at 10 CFR Part 903, Western's LAP firm electric 
service rate was submitted to FERC for confirmation and approval on 
January 10, 1994. On July 14, 1994, in Docket No. EF94-5181-000 at 68 
FERC para. 62,040, FERC issued an order confirming, approving, and 
placing into effect on a final basis the firm electric service rate for 
the LAP. The LAP consists of the Fryingpan-Arkansas Project and the 
Pick-Sloan Missouri Basin Program, Western Division. The rate, Rate 
Order No. WAPA-51, was approved for a 5-year period beginning February 
1, 1994, and ending January 31, 1999.
    On January 31, 1999, the LAP firm electric service rate will 
expire. This makes it necessary to extend the current rate pursuant to 
10 CFR Part 903. Upon its approval, Rate Order No. WAPA-51 will be 
extended under Rate Order No. WAPA-82.
    Western proposes to extend the existing rate of $2.85/kilowattmonth 
for capacity and the rate of 10.85 mills/killowatthour for energy which 
are sufficient to recover project expenses (including interest) and 
capital requirements through January 31, 2001. Increased revenue from 
good hydrologic conditions and lower operation and maintenance expenses 
over the cost evaluation period have made this possible. For the Pick-
Sloan Missouri Basin Program, the ratesetting study projected the 
deficit to peak at $178 million in Fiscal Year (FY) 1994 and to be 
repaid in FY 2002. The deficit actually peaked at $171 million in FY 
1993 and was totally repaid in FY 1997. The Fryingpan-Arkansas Project 
recorded its first principal payment of $2.8 million on the investment 
in FY 1996. In FY 1997, the principal payment for this project was $2.9 
million. No principal payments were projected during this time period 
in Docket No. EF94-5181-000. The total revenue requirement of $44.3 
million is sufficient to cover the expenses and

[[Page 44251]]

capital requirements through January 31, 2001.
    All documents made or kept by Western for developing the proposed 
extension of the firm electric service rate will be made available for 
inspection and copying at the Rocky Mountain Customer Service Region, 
located at 5555 East Crossroads Boulevard, Loveland, Colorado.
    Thirty days after publication of this notice I will submit Rate 
Order No. WAPA-82 to the Deputy Secretary for approval through January 
31, 2001.

    Dated: August 6, 1998.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 98-22185 Filed 8-17-98; 8:45 am]
BILLING CODE 6450-01-P