[Federal Register Volume 65, Number 168 (Tuesday, August 29, 2000)]
[Notices]
[Pages 52423-52424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22074]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pacific Northwest-Pacific Southwest Intertie Project--Extension 
of Firm and Nonfirm Transmission Service Rates--Rate Order No. WAPA-91

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: This action is to extend the existing Pacific Northwest-
Pacific Southwest Intertie Project (AC Intertie) firm point-to-point 
transmission service rate for the 500-kilovolt (kV) transmission system 
and the nonfirm point-to-point transmission service rate for the 230/
345/500-kV transmission system, established under Rate Order No. WAPA-
71, through December 31, 2003. The existing rates expire September 30, 
2000. This notice of an extension of rates is issued pursuant to 10 CFR 
903.23, whereby Rate Order No. WAPA-71 is extended under Rate Order No. 
WAPA-91.

FOR FURTHER INFORMATION CONTACT: Mr. Maher Nasir, Rates Team Lead, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 352-2768, 
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 
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.
    Pursuant with Delegation Order No. 0204-108 and existing Department 
of Energy procedures for public participation in power and transmission 
rate adjustments in 10 CFR part 903, Western's firm and nonfirm point-
to-point transmission service rates for the AC Intertie 230/345/500-kV 
transmission system were submitted to FERC for confirmation and 
approval on January 31, 1996. On July 24, 1996, in Docket No. EF96-
5191-000, at 76 FERC para. 62,061, FERC issued an order confirming, 
approving, and placing in effect on a final basis the firm and nonfirm 
point-to-point transmission service rates for the AC Intertie 230/345/
500-kV transmission system. The rates set forth in Rate Order No. WAPA-
71 were approved for the period beginning February 1, 1996, and ending 
September 30, 2000.
    Under Rate Order No. WAPA-71, the three types of transmission 
service rates approved were (1) a firm point-to-point transmission 
service rate for the AC Intertie 230/345-kV transmission system; (2) a 
firm point-to-point transmission service rate for the AC Intertie 500-
kV transmission system; and (3) a nonfirm point-to-point transmission 
service rate for the AC Intertie 230/345/500-kV transmission system.
    Western's firm point-to-point transmission service rate for the AC 
Intertie 230/345-kV transmission system was superseded through Rate 
Order No. WAPA-76 and submitted to FERC for confirmation and approval 
on February 8, 1999. On June 22, 1999, in Docket No. EF99-5191-000, at 
87 FERC para. 61,346, FERC issued an order confirming, approving, and 
placing in effect on a final basis the firm point-to-point transmission 
service rate for the AC Intertie 230/345-kV transmission system. 
Western's rate of $12.00/kilowattyear for firm point-to-point 
transmission service for the AC Intertie 230/345-kV transmission 
system, set forth in Rate Order No. WAPA-76 was approved for a 5-year 
period beginning January 1, 1999, and ending December 31, 2003.
    During the firm point-to-point transmission service rate 
development for the AC Intertie 230/345-kV transmission system (Rate 
Order No. WAPA-76), Western determined that it will take approximately 
10 years for the AC Intertie 500-kV transmission system to be 
subscribed to a level sufficient to meet its own revenue repayment 
requirements. The ratesetting Power Repayment Study (PRS) established 
for the AC Intertie 230/345/500-kV transmission system (Rate Order No. 
WAPA-76) reflected the phasing-in of AC Intertie 500-kV transmission 
system revenues starting in fiscal year (FY) 1999 through FY 2008. This 
ratesetting PRS remains valid. The projected revenue levels through 
sales of firm and nonfirm point-to-point transmission service and 
miscellaneous items are sufficient to recover project expenses and 
capital requirements through FY 2049 for the AC Intertie 230/345/500-kV 
transmission system. Western, therefore, has decided to extend the 
existing firm point-to-point transmission service rate of $17.23/
kilowattyear for the AC Intertie 500-kV transmission system and the 
nonfirm point-to-point transmission service rate of 2.00 mills/
kilowatthour for the AC Intertie 230/345/500-kV transmission system 
through December 31, 2003. This extension will synchronize the 
expiration dates for all firm and nonfirm point-to-point transmission 
service rates for the AC Intertie 230/345/500-kV transmission system.
    In accordance with 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period and did not hold public information and 
comment forums. The notice of proposed extension of the firm point-to-
point transmission service rate for the AC Intertie 500-kV transmission 
system and the nonfirm point-to-point transmission service rate for the 
AC Intertie 230/345/500-kV transmission system was published in the 
Federal Register (65 FR 36132) on June 7, 2000.
    Following review of Western's proposal within the Department of 
Energy, I approved Rate Order No. WAPA-91, which extends the existing 
firm point-to-point transmission service rate of $17.23/kilowattyear 
for the AC Intertie 500-kV transmission system and the nonfirm point-
to-point transmission service rate of 2.00 mills/kilowatthour for the 
AC Intertie 230/345/500-kV transmission system on an interim basis 
through December 31, 2003.

    Dated: August 15, 2000.
T.J. Glauthier,
Deputy Secretary.

Order Confirming and Approving an Extension of the Pacific Northwest-
Pacific Southwest Intertie Project Firm and Nonfirm Transmission 
Service Rates

    These transmission service rates were 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

[[Page 52424]]

(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 Orders and the Department of 
Energy (DOE) rate extension procedures at 10 CFR part 903.

Background

    Western's firm and nonfirm point-to-point transmission service 
rates for the AC Intertie 230/345/500-kV transmission system were 
submitted to FERC for confirmation and approval on January 31, 1996. 
On July 24, 1996, in Docket No. EF96-5191-000, at 76 FERC para. 
62,061, FERC issued an order confirming, approving, and placing in 
effect on a final basis the firm and nonfirm point-to-point 
transmission service rates for the AC Intertie 230/345/500-kV 
transmission system. The rates set forth in Rate Order No. WAPA-71 
were approved for the period beginning February 1, 1996, and ending 
September 30, 2000.
    Under Rate Order No. WAPA-71, the three types of transmission 
service rates approved were (1) a firm point-to-point transmission 
service rate for the AC Intertie 230/345-kV transmission system; (2) 
a firm point-to-point transmission service rate for the AC Intertie 
500-kV transmission system; and (3) a nonfirm point-to-point 
transmission service rate for the AC Intertie 230/345/500-kV 
transmission system.
    Western's firm point-to-point transmission service rate for the 
AC Intertie 230/345-kV transmission system was superseded through 
Rate Order No. WAPA-76 and submitted to FERC for confirmation and 
approval on February 8, 1999. On June 22, 1999, in Docket No. EF99-
5191-000, at 87 FERC para. 61,346, FERC issued an order confirming, 
approving, and placing in effect on a final basis the firm point-to-
point transmission service rate for the AC Intertie 230/345-kV 
transmission system. Western's rate of $12.00/kilowattyear for firm 
point-to-point transmission service for the AC Intertie 230/345-kV 
transmission system, set forth in Rate Order No. WAPA-76, was 
approved for a 5-year period beginning January 1, 1999, and ending 
December 31, 2003.

Discussion

    During the firm point-to-point transmission service rate 
development for the AC Intertie 230/345-kV transmission system (Rate 
Order No. WAPA-76), Western determined that it will take 
approximately 10 years for the AC Intertie 500-kV transmission 
system to be subscribed to a level sufficient to meet its own 
revenue repayment requirements. The ratesetting Power Repayment 
Study (PRS), established for the AC Intertie 230/345/500-kV 
transmission system (Rate Order No. WAPA-76), reflected the phasing-
in of AC Intertie 500-kV transmission system revenues starting in FY 
1999 through FY 2008. This ratesetting PRS remains valid. The 
projected revenue levels through sales of firm and nonfirm point-to-
point transmission service and miscellaneous items are sufficient to 
recover project expenses and capital requirements through FY 2049 
for the AC Intertie 230/345/500-kV transmission system.
    Western, therefore, has decided to extend the existing firm 
point-to-point transmission service rate of $17.23/kilowattyear for 
the AC Intertie 500-kV transmission system and the nonfirm point-to-
point transmission service rate of 2.00 mills/kilowatthour for the 
AC Intertie 230/345/500-kV transmission system. This extension would 
synchronize the expiration dates for all firm and nonfirm point-to-
point transmission service rates for the AC Intertie 230/345/500-kV 
transmission system.
    In accordance with 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period. The notice of proposed extension of 
the firm point-to-point transmission service rate for the AC 
Intertie 500-kV transmission system and the nonfirm point-to-point 
transmission service rate for the AC Intertie 230/345/500-kV 
transmission system was published in the Federal Register on June 7, 
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 
October 1, 2000, and ending December 31, 2003, the existing firm 
point-to-point transmission service rate of $17.23/kilowattyear for 
the AC Intertie 500-kV transmission system and the nonfirm point-to-
point transmission service rate of 2.00 mills/kilowatthour for the 
AC Intertie 230/345/500-kV transmission system.

    Dated: August 15, 2000.
T.J. Glauthier,
Deputy Secretary.
[FR Doc. 00-22074 Filed 8-28-00; 8:45 am]
BILLING CODE 6450-01-P