[Federal Register Volume 65, Number 60 (Tuesday, March 28, 2000)]
[Notices]
[Pages 16390-16391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7583]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Proposed Rates for Washoe Project--Nonfirm Power

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
rates to sell nonfirm energy from Stampede Powerplant (Stampede) of the 
Washoe Project. Stampede is in Sierra County, California. The current 
rates expire September 30, 2000. The proposed rates will provide 
sufficient revenue to repay all annual costs, including interest 
expense, and repay required investment within the allowable period. 
Rate impacts are detailed in a rate brochure to be provided to all 
interested parties. Proposed rates are scheduled to go into effect on 
October 1, 2000, to correspond with the start of the Federal fiscal 
year (FY), and will remain in effect through September 30, 2005. This 
Federal Register notice initiates the formal process for the proposed 
rates.

DATES: The consultation and comment period begins today and will end 
April 27, 2000. During this period Western will accept written comments 
from interested parties.

ADDRESSES: Send written comments to Mr. Jerry W. Toenyes, Regional 
Manager, Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710. Western 
must receive written comments by the end of the consultation and 
comment period to assure they are considered.

FOR FURTHER INFORMATION CONTACT: Ms. Debbie Dietz, Rates Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, telephone 
(916) 353-4453.

SUPPLEMENTARY INFORMATION: Proposed rates for the sale of nonfirm 
energy from Stampede consist of floor and ceiling rates and are 
designed to recover an annual revenue requirement that includes 
investment repayment, interest, project use costs, and operation and 
maintenance expense. A power repayment study indicates the ceiling rate 
provides sufficient revenue to repay all annual costs, including 
interest expense, and the investment within the allowable period. Other 
analyses indicate the proposed floor rate provides sufficient revenue 
to pay annual operation and maintenance expenses. Proposed floor and 
ceiling rates for nonfirm energy from Stampede Powerplant are 17.89 
mills/kilowatthour (mills/kWh) and 90.07 mills/kWh, respectively. The 
proposed rates are designed to ensure maximum recovery of annual 
revenue requirement at marketable rates.
    To serve project use loads and market the energy from Stampede, 
Western's contract with Sierra Pacific Resources (Sierra) provides for 
the Stampede Energy Exchange Account (SEEA). SEEA is an annual energy 
exchange account for Stampede energy. Under this contract, Sierra 
accepts delivery of all energy generated from Stampede into Sierra's 
electrical system. The dollar value of the Stampede energy received by 
Sierra during any month is credited into the SEEA. Western uses the 
SEEA to benefit project use facilities, market energy from Stampede to 
preference entities over Sierra's transmission system, and sell a 
portion of the energy to Sierra. Beginning January 1, 2005, energy 
available after meeting project use requirements will be sold to the 
Central Valley Project (CVP) at the ceiling rate, as provided in the 
CVP 2004 Marketing Plan. As long as Western has a balance in the SEEA, 
Western and Sierra agree to do any combination of the above 
transactions in any month.
    After meeting project use power requirements, the remaining energy 
available through the SEEA is sold either to Sierra at the proposed 
floor rate or to other entities, giving priority to preference 
customers, at a rate not greater than the proposed ceiling rate but 
more than the proposed floor rate. The formula for the proposed floor 
rate is equal to 85 percent of the then effective, nontime 
differentiated rate provided in Sierra's California Quarterly Short 
Term Purchase Price Schedule for As-Available Purchases from Qualifying 
Facilities with Capacities of 100 kilowatts (kW) or Less. This floor 
rate reflects the rate used to determine a value of the SEEA for the 
benefit of project use facilities. Western determines the proposed 
ceiling rate as the rate necessary to repay the Stampede annual 
expenses and power investment over the remaining repayment period of 
the power facilities.
    A comparison of existing and proposed rates follows:

[[Page 16391]]



------------------------------------------------------------------------
                                     Existing     Proposed
                                   rates as of     rates
       Nonfirm energy rate          October 1,   October 1,    Percent
                                   1995 mills/  2000 mills/     change
                                       kWh          kWh
------------------------------------------------------------------------
Floor Rate.......................        19.26        17.89           -7
Ceiling Rate.....................        80.44        90.07           12
------------------------------------------------------------------------

    Stampede Powerplant is a feature of the Washoe Project authorized 
by Congress in 1956 and is located on the Little Truckee River in 
Sierra County, California. The powerplant has a maximum operating 
capability of 3,650 kW with an estimated annual generation of 11 
million kWh. Since Stampede Powerplant has an installed capacity of 
less than 20,000 kW and generates less than 100 million kWh annually 
for sale, the proposed rates constitute a minor rate adjustment. 
Western has determined that it is not necessary to hold a public 
information or comment forum for this proposed minor rate adjustment 
(10 CFR 903). After Western reviews the comments received, it will 
recommend the proposed rates (and as amended) for approval on an 
interim basis by the Department of Energy (DOE) Deputy Secretary.

Legal Authority

    These nonfirm energy rates for Stampede are established under the 
DOE Organization Act, 42 U.S.C. 7101-7352; the Reclamation Act of 1902, 
ch. 1093, 32 Stat. 388, as amended and supplemented by subsequent 
enactments, particularly section 9(c) of the Reclamation Project Act of 
1939, 43 U.S.C. 485h(c); and other acts specifically applicable to the 
project involved.
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary of Energy delegated (1) 
the authority to develop long-term power and transmission rates on a 
nonexclusive basis to Western's Administrator; and (2) the authority to 
confirm, approve and place into effect on a final basis, to remand, or 
to disapprove such rates to FERC. In Delegation Order No. 0204-172, 
effective November 24, 1999, the Secretary of Energy delegated the 
authority to confirm, approve and place such rates into effect on an 
interim basis to the Deputy Secretary. Existing DOE procedures for 
public participation in power rate adjustments (10 CFR part 903) became 
effective on September 18, 1985 (50 FR 37835).

Availability of Information

    The rate brochure, studies, comments, letters, memorandums, and 
other documents made or kept by Western in developing the proposed 
rates to sell nonfirm energy from Stampede are available for inspection 
and copying at the Sierra Nevada Customer Service Regional Office, at 
114 Parkshore Drive, Folsom, California.

Regulatory Procedural Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to perform a regulatory flexibility analysis 
if a final rule is likely to have a significant economic impact on a 
substantial number of small entities and there is a legal requirement 
to issue a general notice of proposed rulemaking. Western has 
determined that this action does not require a regulatory flexibility 
analysis since it is a rulemaking involving rates or services for 
public property.

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA), of 
1969, 42 U.S.C. 4321, et seq., Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508); and the DOE NEPA Regulations (10 
CFR part 1021), Western has determined that this action is 
categorically excluded from the preparation of an environmental 
assessment or an environmental impact statement.

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

Small Business Regulatory Enforcement Fairness Act

    Western has determined that this rule is exempt from congressional 
notification requirements under 5 U.S.C. 801 because the action is a 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

    Dated: March 14, 2000.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 00-7583 Filed 3-27-00; 8:45 am]
BILLING CODE 6450-01-P