[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Notices]
[Pages 37529-37530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17656]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Proposed Robert D. Willis Power Rate Change

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of public review and comment period.

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SUMMARY: The Administrator, Southwestern, has prepared current and 
revised 1999 Power Repayment Studies for the Robert D. Willis (Willis) 
project which show the need for an increase in annual revenues required 
to meet cost recovery criteria. The increase in the revenues required 
is the result of an increase in the amount of large maintenance items 
within the Operations and Maintenance costs estimated by Corps of 
Engineers. The Administrator has also developed a proposed rate 
schedule for the isolated Willis project to recover the required 
revenues. The proposed rate for the Willis project would increase 
annual revenues approximately 11.5 percent from $302,928 to $337,932 
beginning October 1, 1999.

DATES: Southwestern is conducting this 30 day public notice and comment 
period as prescribed by 10 CFR 903.14(d). The consultation and comment 
period will begin on the date of publication of this Federal Register 
and will end August 11, 1999. The Public Information Forum will be held 
(if requested) on July 20, 1999, 1:00 p.m., Central Daylight Time in 
Southwestern's offices, Williams Center Tower I, One West Third Street, 
Tulsa, Oklahoma 74103.

ADDRESSES: Ten copies of any written comments should be submitted to: 
Mr. Forrest E. Reeves, Assistant Administrator, Office of Corporate 
Operations, Southwestern Power Administration, U.S. Department of 
Energy, P.O. Box 1619, Tulsa, Oklahoma 74101.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant 
Administrator, (918) 595-6696, [email protected].

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, through the Department of Energy 
Organization Act, P.L. 95-91, dated August 4, 1977, and Southwestern 
Power Administration'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 Sam Rayburn Dam project, located in eastern Texas, is 
not interconnected with Southwestern's Integrated System hydraulically, 
electrically, or financially. Instead, the power produced by the Sam 
Rayburn Dam project is marketed by Southwestern as an isolated project 
under a contract through which the customer purchases the entire power 
output of the project at the dam. The

[[Page 37530]]

Willis project, located on the Neches River downstream from the Sam 
Rayburn Dam, consists of two 4,000 kilowatt hydroelectric generating 
units. It, like the Sam Rayburn Dam project, is marketed as an isolated 
project under a contract through which the customer, Sam Rayburn 
Municipal Power Agency (SRMPA), receives the entire output of the 
project. The SRMPA contract is for a period of 50 years as a result of 
SRMPA's funding the construction of the hydroelectric facilities at the 
project. A separate power repayment study is prepared for each project 
which has a special rate based on its isolated project determination.
    Following Department of Energy Order Number RA 6120.2, the 
Administrator, Southwestern, prepared a current power repayment study 
for the Robert D. Willis project using the existing annual rate of 
$302,928. This Power Repayment Study, 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 study indicated that maintaining the current rate 
will create a revenue deficit for the project. This is primarily a 
result of the Corps of Engineers' increase of Large Maintenance items 
included in the estimated Operations and Maintenance cost for the 
Willis Project. The Revised Power Repayment Study for the isolated 
Willis project shows that an increase of $35,004 (a 11.5 percent 
increase) annually will satisfy repayment criteria. This increase would 
change annual revenues produced by the Willis Project from $302,928 to 
$337,932 and satisfy the present financial criteria for repayment of 
the project.
    Opportunity is presented for customers and interested parties to 
receive copies of the studies and proposed rate schedule for the Willis 
project. If you desire a copy of the Repayment Study Data Package for 
the Willis project, submit your request to the information contact 
listed above.
    A Public Information Forum is scheduled to be held July 20, 1999. 
The Public Information Forum is to explain to customers and interested 
parties the proposed rates and supporting studies. The Forum will be 
conducted by a chairman who will be responsible for orderly procedure. 
Questions concerning the rates, studies and information presented at 
the Forum may be submitted from interested persons and will be 
answered, to the extent possible, at the Forum. Questions not answered 
at the Forum will be answered in writing, except the questions 
involving voluminous data contained in Southwestern's records may best 
be answered by consultation and review of pertinent records at 
Southwestern's offices. Persons interested in attending the Public 
Information Forum should indicate in writing by 4:00 p.m., Central 
Daylight Time, Thursday, July 15, 1999, their intent to appear at such 
Forum. Accordingly, if no one so indicates their intent to attend, no 
such Forum will be held. A transcript of the Forum will be made. Copies 
of the transcripts may be obtained, for a fee, directly from the 
transcribing service. Copies of all documents introduced will be 
available from Southwestern upon request, also for a fee. Written 
comments on the proposed rates for the project are due on or before 
August 11, 1999. Written comments should be submitted to the Assistant 
Administrator as indicated above.
    Following review of the oral and written comments, the 
Administrator will submit the rate proposals and the Power Repayment 
Studies for the Willis project, in support of the proposed rates, to 
the Secretary of Energy for confirmation and approval on an interim 
basis and subsequently to the Federal Energy Regulatory Commission 
(FERC) for confirmation and approval on a final basis. The FERC will 
allow the public an opportunity to provide written comments on the 
proposed rate increases before making a final decision.

    Issued in Tulsa, Oklahoma, this 28th day of June, 1999.
Michael A. Deihl,
Administrator.
[FR Doc. 99-17656 Filed 7-9-99; 8:45 am]
BILLING CODE 6450-01-P