[Federal Register Volume 63, Number 219 (Friday, November 13, 1998)]
[Notices]
[Pages 63469-63470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30413]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Proposed Rate Schedule Changes

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Proposed Changes to Southwestern Power Administration 
Rate Schedules and Opportunity for Public Review and Comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has determined that minor revisions to the terms and 
conditions within existing rate schedules NFTS-98 and P-98A are 
required. Since the proposed changes to the rate schedules are 
associated with the terms and conditions of service, the net results of 
the 1997 Integrated System Power Repayment Studies, which was the basis 
for the existing rate schedules, will not be altered. Southwestern held 
informal meetings with customers to discuss proposed changes and to 
provide opportunity for input in the development of these changes.

DATES: Written comments on the proposed rate schedule changes are due 
on or before December 14, 1998.

FOR FURTHER INFORMATION CONTACT: Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, Department of Energy, One West Third Street, Tulsa, 
Oklahoma 74103, (918) 595-6696.

SUPPLEMENTARY INFORMATION:

Changes to Rate Schedule NFTS-98 (Wholesale Rates for Non-Federal 
Transmission Service)

    The name of the rate schedule will be changed to NFTS-98B in order 
to reflect the fact that revisions have been made. Minor corrections 
and modifications were made throughout the rate schedule for the 
purpose of clarification; however two areas have been revised. The 
changes made to the terms and conditions of both Real Power Losses and 
the Capacity Overrun Penalty are addressed in detail below.
    The existing rate schedule (NFTS-98) determined the rate for Real 
Power Losses based upon the cost of energy for Southwestern's marketing 
area during the previous Fiscal Year, as set forth in the most recently 
available Energy Information Administration (EIA) Publication. The EIA 
has recently ceased to compile this information, making it necessary 
for Southwestern to develop an alternative source upon which to base 
its rate for Real Power Losses. The basis for determining the rate to 
charge for Real Power Losses was therefore modified to reflect the 
average actual costs incurred by Southwestern for the purchase of 
energy to replace Real Power Losses during the most

[[Page 63470]]

recent twelve-month period. The rate for Real Power Losses will be 
posted on Southwestern's OASIS. Southwestern proposes to initially 
implement this rate effective January 1, 1999, and thereafter the rate 
will be reviewed and adjusted to become effective at the beginning of 
each Fiscal Year (October 1).
    The Capacity Overrun Penalty provision in the existing rate 
schedule set forth a penalty of $0.05 per kilowatthour for any energy 
which flows outside the authorized bandwidth from a range of 1 to 2,000 
kilowatts and a penalty of $0.10 per kilowatthour for any energy which 
flows outside the authorized bandwidth from 2,001 kilowatts or greater. 
As a result of this past summer's price escalation for power and the 
potential unauthorized use of Southwestern's system, Southwestern has 
revised its Capacity Overrun Penalty provision. It was determined that 
the penalty to be applied would need to be increased to provide a 
greater deterrent not to overrun Southwestern's system. The proposed 
Capacity Overrun Penalty provision has been revised to assess a $0.10 
per kilowatthour penalty for any energy which flows outside of the 
authorized bandwidth during the months of March, April, May, October, 
November, and December. A penalty of $0.30 per kilowatthour will 
likewise be assessed during the months of January, February, June, 
July, August, and September.

Changes to Rate Schedule P-98A (Wholesale Rates for Hydro Peaking 
Power)

    The name of the rate schedule will be changed to P-98B in order to 
reflect the fact that revisions have been made. Minor corrections and 
modifications were made throughout the rate schedule for the purpose of 
clarification; however four areas have been revised. The section 
discussing and listing the Power Customer-specific credit, which ended 
June 30, 1998, has been removed since it is no longer applicable. The 
changes made to the terms and conditions of Real Power Losses, Energy 
Imbalance Service, and the Capacity Overrun Penalty are addressed in 
detail below.
    The existing rate schedule (P-98A) determined the rate for Real 
Power Losses based upon the cost of energy for Southwestern's marketing 
area during the previous Fiscal Year, as set forth in the most recently 
available Energy Information Administration (EIA) Publication. The EIA 
has recently ceased to compile this information, making it necessary 
for Southwestern to develop an alternative source upon which to base 
its rate for Real Power Losses. The basis for determining the rate to 
charge for Real Power Losses was therefore modified to reflect the 
average actual costs incurred by Southwestern for the purchase of 
energy to replace Real Power Losses during the most recent twelve-month 
period. The rate for Real Power Losses will be posted on Southwestern's 
OASIS. Southwestern proposes to initially implement this rate effective 
January 1, 1999, and thereafter the rate will be reviewed and adjusted 
to become effective at the beginning of each Fiscal Year (October 1).
    The Energy Imbalance Service description has been modified to 
clarify that because the Energy Imbalance Service bandwidth specified 
in Southwestern's Open Access Transmission Tariff does not apply to the 
deliveries of Hydro Peaking Power and associated energy, Energy 
Imbalance Service is not charged on such deliveries. However, Power 
Customers who consume a capacity of Hydro Peaking Power greater than 
their Peak Contract Demand may be subject to a Capacity Overrun 
Penalty.
    The Capacity Overrun provision set forth in the existing rate 
schedule assess a penalty of $0.05 per kilowatthour for any energy 
which flows outside the authorized bandwidth from a range of 1 to 2,000 
kilowatts and a penalty of $0.10 per kilowatthour for any energy which 
flows outside the authorized bandwidth from a range of 2,001 kilowatts 
or greater. As a result of this past summer's recent price escalation 
for power and the potential unauthorized use of Southwestern's system, 
Southwestern has revised the Capacity Overrun Penalty provision. It was 
determined that this penalty would need to be increased to provide a 
greater deterrent not to overrun Southwestern's system. The Capacity 
Overrun Penalty provision has been revised to assess a $0.10 per 
kilowatt penalty during the months of March, April, May, October, 
November, and December for each hour during which Hydro Peaking Power 
was provided at a rate greater than that to which the Power Customer is 
entitled. A penalty of $0.30 per kilowatt will likewise be assessed 
during the months of January, February, June, July, August, and 
September.
    Redlined versions of the revised rate schedules NFTS-98B and P-98B 
will be made available upon request. To request a copy, please contact 
Barbara Otte, 918-595-6674 or Tracey Hannon, 918-595-6677.
    The Administrator has determined that written comments will provide 
adequate opportunity for public participation in the rate schedule 
revision process. Therefore an opportunity is presented for interested 
parties to submit written comments on the proposed rate schedule 
changes. Written comments are due on or before thirty (30) days 
following publication of the notice in the Federal Register. Five 
copies of written comments should be submitted to: Michael A. Deihl, 
Administrator, Southwestern Power Administration, One West Third 
Street, Tulsa, OK 74103.
    Following review and consideration of written comments, the 
Administrator will finalize and submit the proposed rate schedules to 
the Deputy Secretary of Energy for approval on an interim basis. The 
Deputy Secretary will then submit the proposed rate schedules to the 
Federal Energy Regulatory Commission for confirmation and approval on a 
final basis.

    Dated: November 5, 1998.
Michael A. Deihl,
Administrator.
[FR Doc. 98-30413 Filed 11-12-98; 8:45 am]
BILLING CODE 6450-01-P