[Federal Register Volume 65, Number 137 (Monday, July 17, 2000)]
[Notices]
[Pages 44045-44046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18003]



[[Page 44045]]

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DEPARTMENT OF ENERGY

Western Area Power Administration


Pick-Sloan Missouri Basin Program-Eastern Division--Notice of 
Order Confirming and Approving an Extension of the Firm Power Service 
and Firm Peaking Power Service Rates for Rate Order No. WAPA-90

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: This action is to extend the existing Pick-Sloan Missouri 
Basin Program-Eastern Division (P-SMBP-ED) firm power service and firm 
peaking power service rates, Rate Order No. WAPA-60, through September 
30, 2003. The existing firm power service and firm peaking power 
service rates will expire January 31, 2001. This notice of an extension 
of rates is issued pursuant to 10 CFR 903.23. Rate Order No. WAPA-60, 
previously extended under Rate Order No. WAPA-83, is further extended 
under Rate Order No. WAPA-90.

FOR FURTHER INFORMATION CONTACT: Mr. Robert F. Riehl, Rates Manager, 
Upper Great Plains Customer Service Region, Western Area Power 
Administration, P.O. Box 35800, Billings, MT 59107-5800, telephone 
(406) 247-7388, or e-mail [email protected].

SUPPLEMENTARY INFORMATION: 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 the 
Western Area Power Administration (Western); and (2) the authority to 
confirm, approve, and place into effect on a final basis, to remand, or 
to disapprove such rates to the Federal Energy Regulatory Commission 
(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 of Energy.
    Pursuant to Delegation Order No. 0204-108 and existing Department 
of Energy procedures for public participation in power rate adjustments 
at 10 CFR part 903, Western's P-SMBP-ED firm power service and firm 
peaking power service rates were submitted to FERC for confirmation and 
approval on January 10, 1994. On July 14, 1994, in Docket No. EF94-
5031-000 at 68 FERC para. 62,040, FERC issued an order confirming, 
approving, and placing into effect on a final basis the firm power 
service and firm peaking power service rates for the P-SMBP-ED. The 
rates set forth, Rate Order No. WAPA-60, were approved for the 5-year 
period beginning February 1, 1994, and ending January 31, 1999. On 
October 16, 1998, upon signing Rate Order No. WAPA 83, the Deputy 
Secretary extended the existing rates for a 2-year period beginning 
February 1, 1999, and ending January 31, 2001.
    On January 31, 2001, the P-SMBP-ED firm power service and firm 
peaking power service rates will expire.
    Western proposed to extend the existing rate of $3.20/kilowattmonth 
for capacity and the rate of 8.32 mills/kilowatthour for energy which 
are sufficient to recover project expenses, including interest, and 
capital requirements through September 30, 2003. Increased revenue from 
good hydrologic conditions and effective cost containment efforts have 
resulted in lower operation and maintenance expenses over the cost-
evaluation period to make this possible. For the Pick-Sloan Missouri 
Basin Program, the rate setting study projected the deficit associated 
with the drought starting in 1989 to peak at $178 million in fiscal 
year (FY) 1994 and to be repaid in FY 2002. The deficit actually peaked 
at $171 million in FY 1993 and was totally repaid, with interest, in FY 
1997. The total revenue requirement of $135.2 million is sufficient to 
cover the expenses and capital requirements through September 30, 2003. 
Western, therefore, has decided to extend the existing rates pursuant 
to 10 CFR 903.23.
    In accordance with 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period. The notice of an extension of the firm 
power service and firm peaking power service rates was published in the 
Federal Register on March 29, 2000.
    Following review of Western's proposal within the Department of 
Energy, I approved Rate Order No. WAPA-90, which extends the existing 
P-SMBP-ED firm power service and firm peaking power service rate 
schedules P-SED-F6 and P-SED-FP6 on an interim basis through September 
30, 2003.

    Dated: July 10, 2000.
T.J. Glauthier,
Deputy Secretary.

Department of Energy Deputy Secretary

Rate Order No. WAPA-90

    In the Matter of: Western Area Power Administration Extension of 
the Firm Power Service and Firm Peaking Power Service Rates for the 
Pick-Sloan Missouri Basin Program-Eastern Division

Order Confirming and Approving an Extension of the Pick-Sloan 
Missouri Basin Program-Eastern Division Firm Power Service and Firm 
Peaking Power Service Rates

    This rate extension was established pursuant to section 302(a) of 
the Department of Energy Organization Act, 42 U.S.C. 7152(a), through 
which the power marketing functions of the Secretary of the Department 
of the Interior and the Bureau of Reclamation under 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), were transferred to and vested 
in the Secretary of Energy (Secretary).
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary delegated (1) the 
authority to develop long-term power and transmission rates on a 
nonexclusive basis to the Administrator of the Western Area Power 
Administration (Western); and (2) the authority to confirm, approve, 
and place into effect on a final basis, to remand, or to disapprove 
such rates to the Federal Energy Regulatory Commission (FERC). In 
Delegation Order No. 0204-172, effective November 24, 1999, the 
Secretary delegated the authority to confirm, approve, and place such 
rates into effect on an interim basis to the Deputy Secretary. This 
rate extension is issued pursuant to the Delegation Order and the 
Department of Energy rate extension procedures at 10 CFR part 903.

Background

    In the order issued July 14, 1994, in Docket No. EF94-5031-000 at 
68 FERC para. 62,040, FERC confirmed, approved, and placed in effect on 
a final basis Rate Order No. WAPA-60, for the firm power service and 
firm peaking power service rates for the Pick-Sloan Missouri Basin 
Program-Eastern Division (P-SMBP-ED), The rates were approved for the 
period from February 1, 1994, through January 31, 1999. On October 16, 
1998, upon signing Rate Order No. WAPA-83 the Secretary extended the 
existing rates for a 2-year period beginning February 1, 1999, through 
January 31, 2001. On January 21, 2001, the P-SMBP-ED firm power service 
and firm peaking power service rates will expire. This makes it 
necessary to extend the current rates pursuant to 10 CFR part 903. With 
this

[[Page 44046]]

approval, Rate Order No. WAPA-60, previously extended under Rate Order 
No. WAPA-83, will be extended under Rate Order WAPA-90. A notice of an 
extension of the firm power and firm peaking power service rates was 
published in the Federal Register on March 29, 2000. Therefore, Western 
is extending P-SMBP-ED firm power and firm peaking power service rates 
under Rate Order No. WAPA-90.

Discussion

    The existing P-SMBP-ED rate is $3.20/kilowattmonth for capacity and 
8.32 mills/kilowatthour for energy. The existing rates are sufficient 
to recover project expenses, including interest and capital 
requirements through September 30, 2003. Increased revenue from good 
hydrologic conditions and effective cost containment efforts have 
resulted in lower operation and maintenance expenses over the cost-
evaluation period. For the Pick-Sloan Missouri Basin Program, the rate 
setting study projected the deficit associated with the drought 
starting in 1989 to peak at $178 million in fiscal year (FY) 1994 and 
to be repaid in FY 2002. The deficit actually peaked at $171 million in 
FY 1993 and was totally repaid, with interest, in FY 1997. The total 
revenue requirement of $135.2 million is sufficient to cover the 
expenses and capital requirements through September 30, 2003.
    In accordance with 10 CFR part 903.23(a)(2), Western did not have a 
consultation and comment period. The notice of proposed extension of 
the firm power service and firm peaking power service rates was 
published in the Federal Register on March 29, 2000.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary, I hereby extend for a period effective February 1, 
2001, and ending September 30, 2003, the existing Rate Schedules P-SED-
F6 for firm power service and P-SED-FP6 on an interim basis for firm 
peaking power service for the P-SMBP-ED.

    Dated: July 10, 2000.
T.J. Glauthier,
Deputy Secretary.
[FR Doc. 00-18003 Filed 7-14-00; 8:45 am]
BILLING CODE 6450-01-P