[Federal Register Volume 63, Number 165 (Wednesday, August 26, 1998)]
[Notices]
[Pages 45479-45480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22912]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of an extension

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SUMMARY: The Deputy Secretary acting under Amendment No. 3 to 
Delegation Order No. 0204-108, effective November 10, 1993, and the 
authorities as implemented in 10 CFR 903.22(h) and 903.23(a)(3), has 
approved and placed into effect on an interim basis Rate Order No. 
SWPA-38.

SUPPLEMENTARY INFORMATION:

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.
    The existing rate schedule for the Sam Rayburn Dam Project was 
confirmed and approved on a final basis by the Federal Energy 
Regulatory Commission (FERC) on December 7, 1994 for the period October 
1, 1994 through September 30, 1998. The FY 1998 Sam Rayburn Dam Project 
PRS indicates the need for a rate adjustment of $3,732 annually, or 0.2 
percent.
    Pursuant to implementing authority in 10 CFR 903(h) and 
903.23(a)(3), the Deputy Secretary of Energy may extend a FERC-approved 
rate on an interim basis. The Administrator, Southwestern, published 
notice in the Federal Register on June 10, 1998, 63 FR 31767, 
announcing a 30-day period for public review and comment concerning the 
proposed interim rate extension. Written comments were accepted through 
July 10, 1998. In a letter dated June 11, 1998, a Sam Rayburn Dam 
Electric Cooperative (SRDEC) official stated that SRDEC has no 
objection to the proposed rate extension. No other comments were 
received.

Discussion

    The existing Sam Rayburn Dam Project rate is based on the FY 1994 
PRS. PRSs have been completed on the Sam Rayburn Dam Project 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 the plus-or-minus two percent Rate Adjustment Threshold 
established by Southwestern's Administrator on June 23, 1987, these 
rate adjustments were deferred in the best interest of the government 
and provided for the next year's PRS to determine the appropriate level 
of

[[Page 45480]]

revenues needed for the next rate period.
    The FY 1998 PRS indicates the need for an annual revenue decrease 
of 0.2 percent. As has been the case since the existing rates were 
approved, the FY 1998 rate adjustment needed falls within 
Southwestern's plus-or-minus two percent Rate Adjustment Threshold and 
would normally be deferred. However, the existing rates expire on 
September 30, 1998. Consequently, Southwestern proposes to extend the 
existing rates for a one-year period ending September 30, 1999, on an 
interim basis under the implementation authorities noted in 10 CFR 
903.22(h) and 903.23(a)(3). Southwestern continues to make significant 
progress toward repayment of the Federal investment in the Sam Rayburn 
Dam Project. Through FY 1997, status of repayment for the Sam Rayburn 
Dam Project was $12,156,954, which represents approximately 47 percent 
of the $25,676,015 Federal investment. The status has increased almost 
31.7 percent since the existing rates were placed in effect.
    Information regarding this rate extension, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, Suite 1400, One 
West Third Street, Tulsa, Oklahoma 74103.

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 one year, effective October 1, 1998, the current FERC-
approved Sam Rayburn Dam Project Rate for the sale of power and energy.

    Dated: August 14, 1998.
Elizabeth A. Moler,
Deputy Secretary.
[FR Doc. 98-22912 Filed 8-25-98; 8:45 am]
BILLING CODE 6450-01-P