[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