[Federal Register Volume 63, Number 209 (Thursday, October 29, 1998)]
[Notices]
[Pages 58033-58034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28911]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--Notice of Order Confirming and Approving 
an Extension of the Firm Electric Service Rate for Rate Order No. WAPA-
82

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: This action is 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 an extension of a rate is issued 
pursuant to 10 CFR 903.23. Rate Order No. WAPA-51 is extended under 
Rate Order No. WAPA-82.

FOR FURTHER INFORMATION CONTACT: Mr. Daniel Payton, Rates Manager, 
Rocky Mountain Customer Service Region, Western Area Power 
Administration, P.O. Box 3700, Loveland, CO 80539-3003, telephone (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 of Energy; 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 power 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 Pick-Sloan Missouri Basin Program, Western Division and 
the Fryingpan-Arkansas Project. The rate, Rate Order No. WAPA-51, was 
approved for the 5-year period beginning February 1, 1994, and ending 
January 31, 1999.
    Western proposed to extend the existing rate of $2.85/kilowattmonth 
for capacity and the rate of 10.85 mills/kilowatthour for energy. The 
existing rates 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 
capital requirements through January 31, 2001. Western, therefore, has 
decided to extend the existing rate pursuant to 10 CFR 903.23.
    In accordance with 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period. The notice of an extension of the firm 
electric service rate was published in the Federal Register on August 
18, 1998. Western is submitting the notice of rate order 30 days after 
that publication.
    Following review of Western's proposal within the Department of 
Energy, I approved Rate Order No. WAPA-82, which extends the existing 
Loveland Area Projects firm electric service Rate Schedule L-F4 on an 
interim basis through January 31, 2001.


[[Page 58034]]


    Dated: October 16, 1998.
Elizabeth A. Moler,
Deputy Secretary.

    This rate was established pursuant to section 302(a) of the 
Department of Energy Organization Act (42 U.S.C. 7152(a)), through 
which the power marketing functions of the Department of the Interior 
and the Bureau of Reclamation under 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)), were transferred to and vested in the 
Secretary of Energy (Secretary).
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary 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 of Energy; 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). This rate 
extension is issued pursuant to the Delegation Order and the Department 
of Energy rate extension procedures at 10 CFR part 903.

BACKGROUND

    In the order issued July 14, 1994, in Docket No. EF94-5181-000 at 
68 FERC para. 62,040, FERC confirmed, approved, and placed into effect 
on a final basis the firm electric service rate for the Loveland Area 
Projects (LAP), Rate Order No. WAPA-51. The rate was approved for the 
period from February 1, 1994, through January 31, 1999.

Discussion

    The LAP consists of the Pick-Sloan Missouri Basin Program, Western 
Division and the Fryingpan-Arkansas Project. The LAP existing rate is 
$2.85/kilowattmonth for capacity and 10.85 mills/kilowatthour for 
energy. The existing rate is 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 
capital requirements through January 31, 2001.
    In accordance with 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period. The notice of an extension of the firm 
electric service rate was published in the Federal Register on August 
18, 1998. Western is submitting the notice of rate order 30 days after 
that publication.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary, I hereby extend for the period effective February 
1, 1999, through January 31, 2001, the existing Rate Schedule L-F4 for 
the firm electric service rate for the Loveland Area Projects.

    Dated: October 16, 1998.
Elizabeth A. Moler,
Deputy Secretary.
[FR Doc. 98-28911 Filed 10-28-98; 8:45 am]
BILLING CODE 6450-01-P