[Federal Register Volume 65, Number 101 (Wednesday, May 24, 2000)]
[Notices]
[Pages 33541-33542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13087]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Proposed Rates for Transmission Service on the Central Arizona 
Project 115-kV and 230-kV Transmission Lines

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed rates.

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SUMMARY: The Western Area Power Administration's (Western) Desert 
Southwest Customer Service Region (DSW) is proposing rate methodologies 
to calculate the rates for firm point-to-point transmission service, 
nonfirm point-to-point transmission service, and Network Integration 
Transmission Service (NITS) on the Central Arizona Project (CAP) 115-kV 
and 230-kV transmission lines. The proposed calculated rates will 
provide enough revenue to pay all annual costs, including interest 
expense, and repay the required investment within the allowable period. 
The proposed rate methodologies are scheduled to go into effect on 
October 1, 2000, and will remain in effect through September 30, 2005. 
This Federal Register notice initiates the formal process for these 
proposed rate methodologies.

DATES: The consultation and comment period will begin from the date of 
publication of this Federal Register notice and will end August 22, 
2000. DSW will present a detailed explanation of the proposed rate 
methodologies and will make available a rate brochure at a public 
information forum scheduled for June 16, 2000, beginning at 10 a.m. 
MST, at the DSW office. Western will receive oral and written comments 
at a public comment forum on July 17, 2000, beginning at 10 a.m. MST, 
also to be held at the DSW office.

ADDRESSES: Written comments are to be sent to: Mr. J. Tyler Carlson, 
Regional Manager, Desert Southwest Customer Service Region, Western 
Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, or by 
e-mail: [email protected]. Western should receive written comments by 
the end of the consultation and comment period to be assured 
consideration. Western's DSW office, is located at 615 South 43rd 
Avenue, Phoenix, Arizona.

FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602) 
352-2768, or by e-mail: [email protected].

SUPPLEMENTARY INFORMATION: The CAP 115-kV and 230-kV transmission lines 
have been used almost exclusively to provide power to the CAP water 
pumps. The planned construction of a number of independent power plants 
in Arizona and Nevada creates a potential demand for use of surplus 
transmission capacity on the CAP 115-kV and 230-kV transmission lines.
    The proposed rate methodologies for point-to-point transmission 
service and NITS on the CAP 115-kV and 230-kV transmission lines are 
based on a revenue requirement that recovers the CAP 115-kV and 230-kV 
transmission lines costs for facilities associated with providing 
transmission service and the non-facilities costs allocated to 
transmission service. The methodology for calculating the rates for 
point-to-point transmission service on the CAP 115-kV and 230-kV 
transmission lines is determined by combining the annual amortization 
costs with the annual operations and maintenance costs, divided by the 
annual average contract rate of delivery. Implementing the proposed 
rate methodology results in a firm point-to-point CAP 115BkV and 230-kV 
transmission line rate of $8.37 per kilowattyear and a nonfirm point-
to-point CAP 115-kV and 230-kV transmission line rate of 0.96 mills/
kWh.
    NITS allows a transmission customer to integrate, plan, 
economically dispatch, and regulate its network resources to serve its 
native load in a way comparable to how a transmission provider uses its 
own transmission system to service its native load customers. The 
monthly charge methodology for NITS on the CAP 115-kV and 230-kV 
transmission lines is the product of the transmission customer's load-
ratio share times one-twelfth of the annual transmission revenue 
requirement. The customer's load-ratio share is calculated on a rolling 
12-month basis (12CP). The customer's load-ratio share is equal to that 
customers' hourly load coincident with the CAP 115-kV and 230-kV 
transmission lines monthly transmission system peak divided by the 
resultant value of the CAP 115-kV and 230-kV transmission lines monthly 
transmission system peak minus the CAP 115-kV and 230-kV transmission 
lines coincident peak for all firm point-to-point transmission service 
plus the CAP 115-kV and 230-kV transmission lines firm point-to-point 
transmission service reservations.
    The proposed rate methodologies include the costs for scheduling, 
system control, and dispatch service.
    These rate methodologies for transmission service on the CAP 115-kV 
and 230-kV transmission lines are being set following the Department of 
Energy 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 the Administrator of Western; and (2) the 
authority to confirm, approve, and place into effect

[[Page 33542]]

on a final basis, to remand, or to disapprove such rates to the Federal 
Energy Regulatory Commission. 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 Department of Energy procedures for public participation 
in power rate adjustments are located at 10 CFR part 903 effective on 
September 18, 1985 (50 FR 37835). Since the proposed rates constitute a 
major rate adjustment as defined in 10 CFR 903.2, both a public 
information forum and a public comment forum will be held. After 
reviewing public comments, Western will recommend the proposed rate 
methodologies be approved on an interim basis by the Deputy Secretary.

Availability of Information

    All brochures, studies, comments, letters, memorandums, and other 
documents made or kept by Western in developing the proposed rate 
methodologies will be made available for inspection and copying at the 
DSW office, located at 615 South 43rd Avenue, Phoenix, Arizona.

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 that particularly applies to rates or 
services applicable to public property.

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969 
(NEPA) (42 U.S.C. 4321, et seq.); Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508); and 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: May 15, 2000.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 00-13087 Filed 5-23-00; 8:45 am]
BILLING CODE 6450-01-P