[Federal Register Volume 64, Number 193 (Wednesday, October 6, 1999)]
[Notices]
[Pages 54293-54295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26028]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of power rate extension.

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SUMMARY: The Secretary of Energy, acting under the authorities as 
implemented in 10 CFR 903.22(h) and 903.23(a)(3), has approved and 
placed into effect on an interim basis Rate Order No. SWPA-40.

SUPPLEMENTARY INFORMATION: Southwestern Power Administration 
(Southwestern) currently markets 2.2 million kilowatts of power from 24 
multiple-purpose reservoir projects, in all or portions of the states 
of Arkansas, Kansas, Louisiana, Missouri, Oklahoma and Texas, with 
power facilities constructed and operated by the U.S. Army Corps of 
Engineers. The Integrated System, comprised of 22 of the projects, is 
interconnected through a transmission system presently consisting of 
138-kV and 161-kV high-voltage transmission lines, 69-kV transmission 
lines, and numerous bulk power substations and switching stations. In 
addition, contractual transmission arrangements provide for integration 
of other projects into the system.
    The remaining two projects, Sam Rayburn Dam and Robert Douglas 
Willis, are isolated hydraulically and electrically from the 
Southwestern transmission system, and their power is marketed under 
separate contracts through which the customer purchases

[[Page 54294]]

the entire power output of the project at the dam. A separate Power 
Repayment Study (PRS) is prepared for each isolated project.
    The existing rate schedule for the Sam Rayburn Dam Project was 
confirmed and approved on a final basis by the Federal Energy 
Regulatory Commission (FERC) on December 7, 1994, for the period 
October 1, 1994, through September 30, 1998. The Deputy Secretary of 
Energy extended the existing rate schedule for a one year period, 
through September 30, 1999. The FY 1999 Sam Rayburn Dam Project PRS 
indicates the need for a rate adjustment of $4,692 annually, or 0.2 
percent.
    Pursuant to implementing authority in 10 CFR 903.22(h) and 
903.23(a)(3), the Secretary of Energy may extend a FERC-approved rate 
on an interim basis. The Southwestern Administrator, published notice 
in the Federal Register on June 29, 1999, 64 FR 34797, announcing a 30-
day period for public review and comment concerning the proposed 
interim rate extension. Written comments were accepted through July 29, 
1999. In a letter dated July 27, 1999, a Sam Rayburn Dam Electric 
Cooperative (SRDEC) official stated that SRDEC has no objection to the 
proposed rate extension. No other comments were received.

Discussion

    The existing Sam Rayburn Dam Project rate is based on the FY 1994 
PRS. PRSs have been completed on the Sam Rayburn Dam Project each year 
since approval of the existing rates. Rate changes identified by the 
PRSs since that period have indicated the need for minimal rate 
increases or decreases. Since the revenue changes reflected by the PRSs 
were within the plus-or-minus two percent Rate Adjustment Threshold 
established by Southwestern's Administrator on June 23, 1987, these 
rate adjustments were deferred in the best interest of the government 
and provided for the next year's PRS to determine the appropriate level 
of revenues needed for the next rate period.
    The FY 1999 PRS indicates the need for an annual revenue increase 
of 0.2 percent. As has been the case since the existing rate was 
approved, the FY 1999 rate adjustment falls within Southwestern's plus-
or-minus two percent Rate Adjustment Threshold and would normally be 
deferred. However, the existing rate expires on September 30, 1999. 
Consequently, Southwestern proposes to extend the existing rate for a 
one-year period ending September 30, 2000, on an interim basis under 
the implementation authorities noted in 10 CFR 903.22(h) and 
903.23(a)(3).
    Southwestern continues to make significant progress toward 
repayment of the Federal investment in the Sam Rayburn Dam Project. 
Through FY 1998, cumulative amortization for the Sam Rayburn Dam 
Project was $12,339,699, which represents approximately 48 percent of 
the $25,734,878 Federal investment. Repayment has increased almost 34 
percent since the existing rate was placed in effect.
    Information regarding this rate extension, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, Suite 1400, One 
West Third Street, Tulsa, Oklahoma 74103.

Order

    In view of the foregoing and pursuant to the authorities granted in 
10 CFR 903.22(h) and 903.23(a)(3), I hereby extend on an interim basis, 
for the period of one year, effective October 1, 1999, the current 
FERC-approved Sam Rayburn Dam Project rate for the sale of power and 
energy.

    Dated: September 15, 1999.
Bill Richardson,
Secretary.

[Rate Order No. SWPA-40]

Order Approving Extension of Power Rate on an Interim Basis

October 1, 1999.
    In the matter of: Southwestern Power Administration--Sam Rayburn 
Dam Project Rate .

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Pub. L. 95-91, the functions of the Secretary of the 
Interior and the Federal Power Commission under Section 5 of the Flood 
Control Act of 1944, 16 U.S.C. 825s, for the Southwestern Power 
Administration (Southwestern) were transferred to and vested in the 
Secretary of Energy. By Delegation Order No. 0204-108, effective 
December 14, 1983, 48 FR 55664, the Secretary of Energy delegated to 
the Deputy Secretary of Energy on a non-exclusive basis the authority 
to confirm, approve and place into effect on an interim basis power and 
transmission rates, and delegated to the Federal Energy Regulatory 
Commission (FERC) on an exclusive basis the authority to confirm, 
approve and place in effect on a final basis, or to disapprove power 
and transmission rates. Amendment No. 1 to Delegation Order No. 0204-
108, effective May 30, 1986, 51 FR 19744, revised the delegation of 
authority to confirm, approve and place into effect on an interim basis 
power and transmission rates by delegating such authority to the Under 
Secretary of Energy rather than the Deputy Secretary of Energy. This 
delegation was reassigned to the Deputy Secretary of Energy by 
Department of Energy (DOE) Notice 1110.29, dated October 27, 1988, and 
clarified by Secretary of Energy Notice SEN-10-89, dated August 3, 
1989, and subsequent revisions. By Amendment No. 2 to Delegation Order 
No. 0204-108, effective August 23, 1991, 56 FR 41835, the Secretary of 
the Department of Energy revised Delegation Order No. 0204-108 to 
delegate to the Assistant Secretary, Conservation and Renewable Energy, 
the authority which was previously delegated to the Deputy Secretary in 
that Delegation Order. By Amendment No. 3 to Delegation Order No. 0204-
108, effective November 10, 1993, the Secretary of Energy re-delegated 
to the Deputy Secretary of Energy, the authority to confirm, approve 
and place into effect on an interim basis power and transmission rates 
of the Power Marketing Administrations. By notice dated April 15, 1999, 
the Secretary of Energy rescinded the authority of the Deputy Secretary 
of Energy under Delegation Order 0204-108. This rate order is issued by 
the Secretary of Energy pursuant to Section 642 of the Department of 
Energy Organization Act.
    This is an interim rate extension. It is made pursuant to the 
authorities as implemented in 10 CFR 903.22(h) and 903.23(a)(3).

Background

    Southwestern currently markets for 2.2 million kilowatts of power 
from 24 multiple-purpose reservoir projects, in the states of Arkansas, 
Kansas, Louisiana, Missouri, Oklahoma and Texas, with power facilities 
constructed and operated by the U.S. Army Corps of Engineers. The 
Integrated System, comprised of 22 of the projects, is interconnected 
through a transmission system presently consisting of 138-kV and 161-kV 
high-voltage transmission lines, 69-kV transmission lines, and numerous 
bulk power substations and switching stations. In addition, contractual 
transmission arrangements provide for integration of other projects 
into the system.
    The remaining two projects, Sam Rayburn Dam and Robert Douglas 
Willis, are isolated hydraulically and electrically from the 
Southwestern transmission system, and their power is marketed under 
separate contracts through which the customer purchases the entire 
power output of the project at

[[Page 54295]]

the dam. A separate Power Repayment Study (PRS) is prepared for each 
isolated project.
    The existing rate schedule for the Sam Rayburn Dam Project was 
confirmed and approved on a final basis by the FERC on December 7, 
1994, for the period October 1, 1994, through September 30, 1998. The 
rate was extended on an interim basis by the Deputy Secretary of 
Energy, who had authority at that time pursuant to Delegation Order 
0204-108, for a one-year period, October 1, 1998, through September 30, 
1999. The FY 1999 Sam Rayburn Dam Project PRS indicates the need for a 
rate adjustment of $4,692 annually, or 0.2 percent.
    Pursuant to implementing authority in 10 CFR 903.22(h) and 
903.23(a)(3), the Secretary of Energy may extend a FERC-approved rate 
on an interim basis. The Southwestern Administrator, published notice 
in the Federal Register on June 29, 1999, 64 FR 34797, announcing a 30-
day period for public review and comment concerning the proposed 
interim rate extension. In addition, an informal meeting was held with 
customer representatives in April 1999. Written comments were accepted 
through July 29, 1999. One comment was received. This comment stated no 
objection to the proposed interim extension.

Discussion

    The existing Sam Rayburn Dam Project rate is based on the FY 1994 
PRS. PRSs have been completed on the Sam Rayburn Dam Project each year 
since approval of the existing rates. Rate changes identified by the 
PRSs since that period have indicated the need for minimal rate 
increases or decreases. Since the revenue changes reflected by the PRSs 
were within the plus-or-minus two percent Rate Adjustment Threshold 
established by Southwestern's Administrator on June 23, 1987, these 
rate adjustments were deferred in the best interest of the government 
and provided for the next year's PRS to determine the appropriate level 
of revenues needed for the next rate period.
    The FY 1999 PRS indicates the need for an annual revenue increase 
of $4,692 (0.2 percent). As has been the case since the existing rate 
was approved, the FY 1999 rate adjustment falls within Southwestern's 
plus-or-minus two percent Rate Adjustment Threshold and would normally 
be deferred. However, the existing rate expires on September 30, 1999. 
Consequently, Southwestern proposes to extend the existing rate for a 
one-year period ending September 30, 2000, on an interim basis under 
the implementation authorities noted in 10 CFR 903.22(h) and 
903.23(a)(3).
    Southwestern continues to make significant progress toward 
repayment of the Federal investment in the Sam Rayburn Dam Project. 
Through FY 1998, cumulative amortization for the Sam Rayburn Dam 
Project was $12,339,699, which represents approximately 48 percent of 
the $25,734,878 Federal investment for the Sam Rayburn Dam Project. The 
cumulative amortization has increased almost 34 percent since the 
existing rate was placed in effect.
    Information regarding this rate extension, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74101.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me in 10 CFR part 903, I hereby extend on an interim basis, for the 
period of one year, effective October 1, 1999, the current FERC-
approved Sam Rayburn Dam Project rate for the sale of power.

    Dated: September 15, 1999.
Bill Richardson,
Secretary.
[FR Doc. 99-26028 Filed 10-5-99; 8:45 am]
BILLING CODE 6450-01-P