[Federal Register Volume 65, Number 123 (Monday, June 26, 2000)]
[Notices]
[Pages 39386-39387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16051]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed extension.

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SUMMARY: The current Sam Rayburn Dam Project Rate was approved by the 
Federal Energy Regulatory Commission (FERC) on December 7, 1994, Docket 
No. EF94-4021-000. This rate was effective October 1, 1994, through 
September 30, 1998. On August 14, 1998, the Deputy Secretary of Energy 
approved a one-year extension of the Sam Rayburn Dam Rate Schedule for 
the period October 1, 1998 through September 30, 1999. On September 15, 
1999, the Secretary of Energy approved a one-year extension of the Sam 
Rayburn Dam Rate Schedule for the period October 1, 1999 through 
September 30, 2000. Southwestern's Administrator has prepared Current 
and Revised Fiscal Year (FY) 2000 Power Repayment Studies for the Sam 
Rayburn Dam Project which show the need for a minor rate adjustment of 
$28,068 (1.3 percent increase) in annual revenues.

[[Page 39387]]

Southwestern's rate adjustment threshold, dated June 23, 1987, provides 
that Southwestern's Administrator may defer a revenue decrease or 
increase in the magnitude of two percent or less. The Deputy Secretary 
of Energy has the authority to extend rates, previously confirmed and 
approved by FERC, on an interim basis, pursuant to 10 CFR 903.22(h) and 
903.23(a)(3). The Administrator is proposing that the rate adjustment 
be deferred and that the current rate be extended for a one-year period 
effective through September 30, 2001, in accordance with Department of 
Energy (DOE) rate extension authority and Southwestern's rate 
adjustment threshold.

DATES: Written comments are due on or before July 26, 2000.

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

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, Department of Energy Organization Act, 
Pub. L. 95-91, dated August 4, 1977, and Southwestern's power marketing 
activities were transferred from the Department of the Interior to the 
Department of Energy, effective October 1, 1977.
    Southestern markets power from 24 multiple-purpose reservoir 
projects with power facilities constructed and operated by the U.S. 
Army Corps of Engineers (Corps). These projects are located in the 
States of Arkansas, Missouri, Oklahoma and Texas. Southwestern's 
marketing area includes these states plus Kansas and Louisiana. 
Southwestern's Integrated System is comprised of 22 of these projects 
interconnected through Southwestern's transmission system and exchange 
agreements with other utilities. The other two projects (Sam Rayburn 
and Robert Douglas Willis) are not interconnected with Southwestern's 
Integrated System. Their power is marketed under contracts through 
which two customers purchase the entire power output of each of the 
projects at the dams.
    Following DOE Order Number RA 6120.2, Southwestern's Administrator 
prepared a FY 2000 Current Power Repayment Study (PRS) using the 
existing Sam Rayburn Dam Project rate schedule. The Current PRS shows 
the cumulative amortization through FY 1999 at $12,795,065 on a total 
investment of $25,845,371. The FY 2000 Revised PRS indicates the need 
for an increase in annual revenues of $28,068, or 1.3 percent.
    Southwestern generally defers, as a matter of practice, an 
indicated rate adjustment that falls within Southwestern's plus-or-
minus two percent rate adjustment threshold. The threshold was 
developed to minimize Southwestern's cost while still maintaining 
adequate rates and is consistent with cost recovery criteria within DOE 
Order Number RA 6120.2 regarding rate adjustment plans. The Sam Rayburn 
Dam Project's FY 1999 (last year's) PRS concluded that the annual 
revenues needed to be increased by 0.2 percent. At that time, it was 
determined prudent to defer the increase in accordance with the 
established threshold and the current rate schedule was continued for 
one year. It once again seems prudent to defer this potential rate 
adjustment in accordance with Southwestern's rate adjustment threshold 
and re-evaluate the ability of the existing rate to provide sufficient 
revenues to satisfy costs projected in the FY 2001 (next year's) PRS.
    The current rate schedule for the Sam Rayburn Dam Project was 
confirmed and approved by the FERC on a final basis on December 7, 
1994, for a period that ended September 30, 1998. In accordance with 10 
CFR 903.22(h) and 903.23(a)(3), the Deputy Secretary may extend 
existing rates on an interim basis beyond the period specified by the 
FERC.
    As a result of the benefits of reduced Federal expense and rate 
stability obtained by a rate adjustment deferral, Southwestern's 
Administrator is proposing to extend the current Sam Rayburn Dam 
Project Rate Schedule. The schedule is to be effective for the one-year 
period beginning October 1, 2000, and extending through September 30, 
2001.
    Opportunity is presented for customers and interested parties to 
receive copies of the study data for the Sam Rayburn Dam Project. If 
you desire a copy of the Power Repayment Study data package for the Sam 
Rayburn Dam Project, please submit your request to: Mr. Forrest E. 
Reeves, Assistant Administrator, Office of Corporate Operations, P.O. 
Box 1619, Tulsa, OK 74101, call (918) 595-6696 or e-mail 
[email protected].
    Following review of the written comments (absent any substantive 
reasons to do otherwise), the Administrator will submit the rate 
extension proposal for the Sam Rayburn Dam Project to the Deputy 
Secretary of Energy for confirmation and approval.

    Dated: June 14, 2000.
Michael A. Deihl,
Administrator.
[FR Doc. 00-16051 Filed 6-23-00; 8:45 am]
BILLING CODE 6450-01-P