[Federal Register Volume 64, Number 124 (Tuesday, June 29, 1999)]
[Notices]
[Pages 34797-34798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16518]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed extension.

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SUMMARY: The Current Sam Rayburn Dam Project rate was approved by the 
Federal Energy Regulatory Commission (FERC) on December 7, 1994, Docket 
No. EF94-4021-000. These rates were effective October 1, 1994, through 
September 30, 1998. On August 14, 1998, the Deputy Secretary of Energy 
approved a one-year extension of the Sam Rayburn Dam rate schedule for 
the period October 1, 1998 through September 30, 1999. The 
Administrator, Southwestern, has prepared Current and Revised 1999 
Power Repayment Studies for the Sam Rayburn Dam Project which show the 
need for a minor rate adjustment of $4,692 (0.2 percent increase) in 
annual revenues. In accordance with Southwestern's rate adjustment 
threshold, dated June 23, 1987, the Administrator, Southwestern, may 
determine, on a case by case basis, that for a revenue decrease or 
increase in the magnitude of two percent, deferral of a formal rate 
filing is in the best interest of the Government. The Secretary of 
Energy has the authority to extend rates, previously confirmed and 
approved by FERC, on an interim basis, pursuant to 10 CFR 903.22(h) and 
903.23(a)(3). In accordance with Department of Energy (DOE) rate 
extension authority and Southwestern's rate adjustment threshold, the 
Administrator is proposing that the rate adjustment be deferred and 
that the current rates be extended for a one-year period effective 
through September 30, 2000.

DATES: Written comments are due on or before July 29, 1999.

FOR FURTHER INFORMATION CONTACT: Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 
74101, (918) 595-6696, [email protected].

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, Department of Energy Organization Act, 
Pub. L. 95-91, dated August 4, 1977, and Southwestern's power marketing 
activities were transferred from the Department of the Interior to the 
Department of Energy, effective October 1, 1977.
    Southwestern markets power from 24 multiple-purpose reservoir 
projects with power facilities constructed and operated by the U.S. 
Army Corps of Engineers. These projects are located in the States of 
Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area 
includes these states plus Kansas and Louisiana. Of the total, 22 
projects comprise an Integrated System and are interconnected through 
Southwestern's transmission system and exchange agreements with other 
utilities. The other two projects (Sam Rayburn and Robert Douglas 
Willis) are not interconnected with Southwestern's Integrated System. 
Instead, their power is marketed under separate contracts through which 
two customers purchase the entire power output of each of the projects 
at the dams.
    Following DOE Order Number RA 6120.2, the Administrator, 
Southwestern, prepared a 1999 Current Power Repayment Study (PRS) using 
the existing Sam Rayburn Dam Project rate schedule. This PRS, like the 
previous year's, includes estimates for both Southwestern's and the 
Corps' portions of the unfunded Civil Service Retirement Service and 
post retirement life/health costs. The PRS shows the cumulative 
amortization through FY 1998 at $12,339,699 on a total investment of 
$25,734,878. The FY 1999 Revised PRS indicates the need for an increase 
in annual revenues of $4,692, or 0.2 percent.
    As a matter of practice, Southwestern would defer an indicated rate 
adjustment that falls within Southwestern's plus-or-minus two percent 
rate adjustment threshold. The threshold was developed to add 
efficiency to the process of maintaining adequate rates and is 
consistent with cost recovery criteria within DOE Order Number RA 
6120.2 regarding rate adjustment plans. The Sam Rayburn Dam Project's 
FY 1998 (last year's) PRS concluded that the annual revenues needed to 
be decreased by 0.2 percent. At that time, it was determined prudent to 
defer the decrease in accordance with the established threshold and the 
current rate schedule was continued for one year. It once again seems 
prudent to defer this rate adjustment of 0.2 percent, or $4,692 per 
year in accordance with Southwestern's rate adjustment threshold and 
reevaluate the ability of the existing rate to provide sufficient 
revenues to satisfy costs projected in the FY 2000 (next year's) PRS.
    On December 7, 1994, the current rate schedule for the Sam Rayburn 
Dam Project was confirmed and approved by the FERC on a final basis for 
a period that ended September 30, 1998. In accordance with 10 CFR 
903.22(h) and 903.23(a)(3), the Secretary may extend existing rates on 
an interim basis beyond the period specified by the FERC.
    As a result of the benefits obtained by a rate adjustment deferral 
(reduced Federal expense and rate stability) and the Secretary's 
authority to extend a previously approved rate, Southwestern's 
Administrator is proposing to extend the current Sam

[[Page 34798]]

Rayburn Dam Project rate schedule. The schedule is to be effective for 
the one-year period beginning October 1, 1999, and extending through 
September 30, 2000.
    Opportunity is presented for customers and interested parties to 
receive copies of the study data for the Sam Rayburn Dam Project. If 
you desire a copy of the Repayment Study data package for the Sam 
Rayburn Dam Project, please submit your request to: Mr. Forrest E. 
Reeves, Assistant Administrator, Office of Corporate Operations, P.O. 
Box 1619, Tulsa, OK 74101, call (918) 595-6696 or e-mail 
[email protected].
    Following review of the written comments (absent any substantive 
reasons to do otherwise), the Administrator will submit the rate 
extension proposal for the Sam Rayburn Dam Project to the Secretary of 
Energy for confirmation and approval.

    Dated: June 16, 1999.
Michael A. Deihl,
Administrator.
[FR Doc. 99-16518 Filed 6-28-99; 8:45 am]
BILLING CODE 6450-01-P