[Federal Register Volume 63, Number 209 (Thursday, October 29, 1998)]
[Notices]
[Pages 58034-58035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28912]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pick-Sloan Missouri Basin Program-Eastern Division--Notice of 
Order Confirming and Approving an Extension of the Firm Power Service 
and Firm Peaking Power Service Rates for Rate Order No. WAPA-83

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: This action is to extend the existing Pick-Sloan Missouri 
Basin Program-Eastern Division (P-SMBP-ED) firm power service and firm 
peaking power service rates, Rate Order No. WAPA-60, through January 
31, 2001. The existing firm power service and firm peaking power 
service rates will expire January 31, 1999. This notice of an extension 
of rates is issued pursuant to 10 CFR 903.23. Rate Order No. WAPA-60 is 
extended under Rate Order No. WAPA-83.

FOR FURTHER INFORMATION CONTACT: Mr. Robert F. Riehl, Rates Manager, 
Upper Great Plains Customer Service Region, Western Area Power 
Administration, PO Box 35800, Billings, MT 59107-5800, telephone (406) 
247-7388, 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 P-SMBP-ED firm power service and firm 
peaking power service rates were submitted to FERC for confirmation and 
approval on January 20, 1994. On July 14, 1994, in Docket No. EF94-
5031-000 at 68 FERC para. 62,040, FERC issued an order confirming, 
approving, and placing into effect on a final basis the firm power 
service and firm peaking power service rates for the P-SMBP-ED. The 
rates, Rate Order No. WAPA-60, were approved for the 5-year period 
beginning February 1, 1994, and ending January 31, 1999.
    Western proposed to extend the existing rate of $3.20/kilowattmonth 
for capacity and the rate of 8.32 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 total revenue 
requirement of $135.2 million is sufficient to cover the expenses and 
capital requirements through January 31, 2001. Western, therefore, has 
decided to extend the

[[Page 58035]]

existing rates 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 
power service and firm peaking power service rates 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-83, which extends the existing 
P-SMBP-ED firm power service and firm peaking power service Rate 
Schedules P-SED-F6 and P-SED-FP6 on an interim basis through January 
31, 2001.

    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. EF94-5031-000 at 
68 FERC para. 62,040, FERC confirmed, approved, and placed in effect on 
a final basis the firm power service and firm peaking power service 
rates for the Pick-Sloan Missouri Basin Program-Eastern Division, Rate 
Order No. WAPA-60. The rates were approved for the period from February 
1, 1994, through January 31, 1999.

Discussion

    The existing Pick-Sloan Missouri Basin Program-Eastern Division (P-
SMBP-ED) rate is $3.20/kilowattmonth for capacity and 8.32 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 total revenue requirement of $135.2 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 
power service and firm peaking power service rates 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 a period effective February 1, 
1999, through January 31, 2001, the existing Rate Schedules P-SED-F6 
for firm power service and P-SED-FP6 for firm peaking power service for 
the Pick-Sloan Missouri Basin Program-Eastern Division.

    Dated: October 16, 1998.
Elizabeth A. Moler,
Deputy Secretary.
[FR Doc. 98-28912 Filed 10-28-98; 8:45 am]
BILLING CODE 6450-01-P