[Federal Register Volume 64, Number 240 (Wednesday, December 15, 1999)]
[Notices]
[Pages 70010-70011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32468]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: Pursuant to Sections 301(b) and 302(a) of the Department of 
Energy Organization Act (Pub. L. 95-91) and Section 5 of the Flood 
Control Act of 1944 (16 U.S.C. 825s) the Deputy Secretary of the 
Department of Energy has approved and placed into effect on an interim 
basis Rate Order No. SWPA-42 which provides the following Integrated 
System Rate Schedules:

--Rate Schedule P-98C, Wholesale Rates for Hydro Peaking Power
--Rate Schedule NFTS-98C, Wholesale Rates for Non-Federal Transmission 
Service

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

SUPPLEMENTARY INFORMATION: The FY 1999 Power Repayment Studies for the 
Integrated System indicate that rates prescribed by Rate Schedules P-
98B, Wholesale Rates for Hydro Peaking Power, and NFTS-98B, Wholesale 
Rates for Non-Federal Transmission Service, are adequate to meet 
repayment criteria within the plus-or-minus two percent rate adjustment 
threshold. However, certain aspects of the terms and conditions set 
forth in the rate schedules need to be revised to expand the Real Power 
Loss provisions and to more accurately reflect actual regional 
operating conditions for Spinning and Supplemental Operating Reserves. 
The names of the rate schedules have been changed from P-98B and NFTS-
98B to P-98C and NFTS-98C to reflect that revisions have been made.
    Southwestern Power Administration (Southwestern) has followed Title 
10, Part 903, Subpart A of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustments,'' in connection with the minor rate schedule revisions 
being proposed. The public was advised by notice published in the 
Federal Register (64 FR 49483), September 13, 1999, of proposed rate 
schedule changes and of the opportunity to participate in a 30-day 
public comment period. Written comments on the proposed rate schedule 
changes were due on or before October 13, 1999. No written comments 
were received. In addition, several informal meetings were held with 
customers and interested parties to discuss the proposed changes.
    Information regarding these rate schedule revisions, including 
supporting material, is available for public review and comment in the 
offices of Southwestern Power Administration, One West Third Street, 
Suite 1400, Tulsa, Oklahoma 74103.
    Following review of Southwestern's proposal within the Department 
of Energy, I hereby approve Rate Order No. SWPA-42 on an interim basis, 
through
    September 30, 2001, or until confirmed and approved on a final 
basis by the Federal Energy Regulatory Commission.

    Dated: December 2, 1999.
T.J. Glauthier,
Deputy Secretary.

Order Confirming, Approving and Placing Revised Power Rate 
Schedules in Effect on an Interim Basis (January 1, 2000)

[Rate Order, No. SWPA-42]

    Pursuant to Sections 301(b) and 302(a) of the Department of Energy 
Organization Act, Public Law 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 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. This rate order is 
issued by the Secretary of Energy pursuant to the Department of Energy 
Organization Act, Public Law 95-91, as noted above.

Background

    In September 1999, Southwestern completed its review of the 
adequacy of the current rate schedules for the Integrated System and 
finalized its FY 1999 Power Repayment The FY 1999 Power Repayment for 
the Integrated System indicates that rates prescribed by Rate Schedules 
P-98B, Wholesale Rates for Hydro Peaking Power, and NFTS-98B, Wholesale 
Rates for Non-Federal Transmission Service, are sufficient to meet 
repayment criteria within the plus-or-minus 2 percent rate adjustment 
threshold. However, certain aspects of the terms and conditions set 
forth in the rate schedules need to be revised to expand the Real Power 
Loss provisions and to more accurately reflect actual regional 
operating conditions for Spinning and Supplemental Operating Reserves. 
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. The designations of the 
aforementioned rate schedules have been changed from P-98B and NFTS-98B 
to P-98C and NFTS-98C, respectively, to reflect the fact that revisions 
have been made.
    Title 10, Part 903 Subpart A, of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustments and Extensions'' (Part 903) have been followed in 
connection with the proposed revisions to the rate schedules. An 
opportunity for customers and other interested members of the public to 
review and comment on the proposed Rate Schedules P-98C and NFTS-98C 
was announced by notice published in the Federal Register (64 FR 
49483), September 13, 1999, with written comments due on or before 
October 13, 1999. In addition, Southwestern held informal meetings with 
customers to discuss proposed changes and to provide opportunity for 
input in the development of these

[[Page 70011]]

changes. No written comments were received.

Discussion

    Rate Schedule P-98C applies to wholesale customers purchasing hydro 
peaking power and peaking energy from the Integrated System. This rate 
schedule is designed for the sale of Federal power and energy. 
Provisions in the rate schedule are being revised to reflect minor 
corrections and modifications for the purpose of clarification. Also, 
terms and conditions regarding specific provisions of this rate 
schedule are being expanded to address customer or operational 
concerns. Southwestern proposes to amend the terms and conditions for 
Real Power Losses by adding a provision for the annual election to 
self-provide Real Power Losses, and to broaden the application of rates 
for the Spinning and Supplemental Operating Reserve ancillary services 
to apply to deliveries of non-Federal power and energy generated by 
resources located within Southwestern's Control Area and for all 
deliveries of Hydro Peaking Power and associated energy. The rates for 
the Spinning and Supplemental Operating Reserve ancillary services will 
be reduced due to the increase in billing units that result from the 
expanded application. However, the revenue requirements will remain 
unchanged.
    The existing rate schedule (P-98B) determined the rate for Real 
Power Losses based upon the average actual costs incurred by 
Southwestern for the purchase of energy to replace Real Power Losses 
during the most recent twelve-month period. Southwestern has revised 
this provision to use the average actual purchase costs during the 
previous fiscal year (October through September) and to post the rate 
for Real Power Losses on Southwestern's OASIS by November 1 of each 
year, with an effective date of January 1 of each calendar year. The 
timeframe for implementing the annual loss rate has been revised to 
accommodate the annual election for self-provision of Real Power 
Losses. Southwestern proposes to implement the revised rate for Real 
Power Losses effective January 1, 2000. Customers who decide to 
exercise their election for self-provision of Real Power Losses 
initially must do so by January 1, 2000, with implementation beginning 
February 1, 2000. Thereafter, the annual election for self-provision is 
required to be exercised by December 1 of the prior calendar year, for 
implementation beginning January 1 of each calendar year.
    The provisions for the Spinning and Supplemental Operating Reserves 
ancillary services have been broadened to include application to 
deliveries of non-Federal power and energy generated by resources 
located within Southwestern's Control Area. In addition, these two 
ancillary services will also apply to all deliveries of Hydro Peaking 
Power and associated energy, from and within Southwestern's Control 
Area. This change in application is needed to accommodate 
Southwestern's obligation, as a member of the regional reliability 
council in which it operates, to supply Spinning and Supplemental 
Operating Reserves for all power generated within Southwestern's 
Control Area.
    Rate Schedule NFTS-98C applies to wholesale customers purchasing 
Non-Federal Point-to-Point and Network Integration Transmission 
Service. Both the Real Power Losses and the Spinning and Supplemental 
Reserve ancillary services have been revised in the same manner as in 
Rate Schedule P-98C, noted above.

Comments and Responses

    Southwestern has received no formal written comments regarding 
these Rate Schedule changes.

Other Issues

    There were no other issues raised during the informal meetings or 
during the formal public participation period.

Administrator's Certification

    The revised rate schedules will repay all costs of the Integrated 
System including amortization of the power investment consistent with 
the provisions of Department of Energy Order No. RA 6120.2. In 
accordance with Section 1 of Delegation Order No. 0204-108, as amended 
November 10, 1993, 58 FR 59717, and Section 5 of the Flood Control Act 
of 1944, the Administrator has determined that the proposed System Rate 
Schedules are consistent with applicable law and the lowest possible 
rates consistent with sound business principles.

Environment

    No additional evaluation of the environmental impact of the 
proposed rate schedule changes was conducted since no change has been 
made to the currently-approved System rates which were determined to 
fall within the class of actions that are categorically excluded from 
the requirements of preparing either an Environmental Impact Statement 
or an Environmental Assessment.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm, approve and place in 
effect on an interim basis, effective January 1, 2000, the Southwestern 
Integrated System Rate Schedules P-98C and NFTS-98C which shall remain 
in effect on an interim basis through September 30, 2001, or until the 
FERC confirms and approves the rates on a final basis.

    Dated: December 2, 1999.
T.J. Glauthier,
Deputy Secretary.
[FR Doc. 99-32468 Filed 12-14-99; 8:45 am]
BILLING CODE 6450-01-P