[Federal Register Volume 65, Number 171 (Friday, September 1, 2000)]
[Notices]
[Pages 53290-53294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22512]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Washoe Project, Stampede Division--Rate Order No. WAPA-93

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: The Deputy Secretary of the Department of Energy (DOE) has 
confirmed and approved Rate Order No. WAPA-93 and Rate Schedule SNF-5 
placing into effect provisional nonfirm energy rates for the Washoe 
Project, Stampede Division (Stampede), of the Western Area Power 
Administration (Western). The provisional rates will be in effect for 
an interim basis until the Federal Energy Regulatory Commission (FERC) 
confirms, approves, and places them into effect on a final basis or 
until they are replaced by other rates. The provisional rates will 
provide sufficient revenue to pay all annual costs, including interest 
expense, and repay the power investment in the allowable period.

DATES: The provisional rates will be effective from October 1, 2000, 
and continue on an interim basis until FERC confirms, approves, and 
places the rate schedule into effect on a final basis for 5 years 
ending September 30, 2005, or until the rate schedule is superseded.

FOR FURTHER INFORMATION CONTACT: Ms. Debbie Dietz, Rates Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, California 95630-4710, 
(916) 353-4453, e-mail [email protected].

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved the 
existing Rate Schedule SNF-4 for Stampede nonfirm energy on September 
29, 1995 (Rate Order No. WAPA-67, 60 FR 53785, October 17, 1995). FERC 
confirmed and approved the rate schedule on March 31, 1997, under FERC 
Docket No. EF96-5161-000 (78 FERC para. 61364). The existing Rate 
Schedule is effective from October 1, 1995, through September 30, 2000, 
and is being superseded by Rate Schedule SNF-5.
    To serve project use loads and market the energy from Stampede, 
Western's contract with Sierra Pacific Resources (Sierra) provides for 
the Stampede

[[Page 53291]]

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 at the provisional floor 
rate. 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. 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 project use 
requirements have been met, available nonfirm energy is sold to Sierra 
at the provisional floor rate or to other entities, giving priority to 
preference customers, at a rate not greater than the provisional 
ceiling rate but no lower than the provisional floor rate. Beginning 
January 1, 2005, energy available after meeting project use 
requirements will be sold to the Central Valley Project (CVP) at the 
provisional ceiling rate, as provided in the CVP 2004 Marketing Plan. 
The formula for the provisional 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 provisional floor rate is used to 
calculate the value of the SEEA for the benefit of project use 
facilities. Western applied the ratio of the projected costs for 
project use service to the projected revenue from Stampede generation 
recorded in the SEEA, to the projected power costs to calculate the 
nonreimbursable costs. The reimbursable costs are reduced by revenues 
from sales made at less than the ceiling rate. The remaining 
reimbursable costs and the estimated energy remaining after meeting 
project use service were used to calculate the ceiling rate necessary 
to repay Stampede costs.
    Under Rate Schedule SNF-5, the provisional nonfirm energy rate is 
17.89 mills per kilowatthour (mills/kWh) for the floor rate and 90.07 
mills/kWh for the ceiling rate. This table compares existing and 
provisional rates.

----------------------------------------------------------------------------------------------------------------
                                                                                       Provisional
                                                                     Existing rates       rates
                                                                      as of October     beginning      Percent
                        Nonfirm energy rates                         1, 1995  mills/   October 1,       change
                                                                           kWh        2000  mills/
                                                                                           kWh
----------------------------------------------------------------------------------------------------------------
Rate Schedule......................................................           SNF-4           SNF-5  ...........
Floor Rate.........................................................           19.26           17.89           -7
Ceiling Rate.......................................................           80.44           90.07           12
----------------------------------------------------------------------------------------------------------------

Provisional Rates for Stampede Nonfirm Energy

    Provisional rates for the sale of Stampede nonfirm energy consist 
of floor and ceiling rates and are designed to recover an annual 
revenue requirement including investment repayment, interest, project 
use costs, and operation and maintenance expenses. A power repayment 
study indicates the provisional ceiling rate provides sufficient 
revenue to repay all annual costs, including interest expense, and the 
investment in the allowable period. Other analyses indicate the 
provisional floor rate provides sufficient revenue to pay annual 
operation and maintenance expenses.
    The provisional rates for Stampede nonfirm energy are developed 
under the Department of Energy Organization Act (42 U.S.C. 7101-7352), 
through which the power marketing functions of the Secretary 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)), and other acts that 
specifically apply to the project involved, were transferred to and 
vested in the Secretary of Energy.
    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.
    Western followed the DOE procedures for Public Participation in 
Power and Transmission Rate Adjustments and Extensions, 10 CFR part 
903, in developing these provisional rates.
    Rate Order No. WAPA-93, confirming, approving, and placing the 
proposed Stampede nonfirm energy rates into effect on an interim basis, 
is issued. The new Rate Schedule SNR-5 will be submitted promptly to 
FERC for confirmation and approval on a final basis.

    Dated: August 22, 2000.
T. J. Glauthier,
Deputy Secretary.

Order Confirming, Approving, and Placing the Washoe Project, 
Stampede Division Nonfirm Power Service Rates Into Effect on an 
Interim Basis

    These rates are developed under the Department of Energy 
Organization Act (42 U.S.C. 7101-7352), through which the power 
marketing functions of the Secretary 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)), and other acts specifically applicable to the project 
involved, 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 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 the Federal Energy Regulatory Commission 
(FERC). In Delegation Order No. 0204-172, effective November 24, 1999, 
the Secretary

[[Page 53292]]

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 are found 
in 10 CFR part 903. Procedures for approving Power Marketing 
Administration rates by FERC are found in 18 CFR part 300.

Acronyms and Definitions

    As used in this rate order, the following acronyms and definitions 
apply:
    Administrator: The Administrator of the Western Area Power 
Administration (Western).
    CVP: Central Valley Project.
    Customer: An entity with a contract and receiving service from 
Western's Sierra Nevada Region.
    DOE: United States Department of Energy.
    DOE Order RA 6120.2: An order dealing with power marketing 
administration financial reporting and rate-making procedures.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time. It is expressed in kWh.
    Energy Rate: The rate which sets forth the charges for energy. It 
is expressed in mills/kWh and applied to each kWh delivered to each 
customer.
    FERC: Federal Energy Regulatory Commission.
    FY: Fiscal year; October 1 to September 30.
    Interior: United States Department of the Interior.
    kV: Kilovolt. The electrical unit of measure of electric potential 
that equals 1,000 volts.
    kW: Kilowatt. The electrical unit of capacity that equals 1,000 
watts.
    kWh: Kilowatthour. The electrical unit of energy that equals 1,000 
watts in 1 hour.
    Mill: A monetary denomination of the United States that equals one 
tenth of a cent or one thousandth of a dollar.
    Mills/kWh: Mills per kilowatthour. The unit of charge for energy.
    MW: Megawatt. The electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.
    NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et 
seq.).
    Net Revenue: Revenue remaining after paying all annual expenses.
    Nonfirm: A type of product and/or service that is not always 
available at the time requested by the customer.
    O&M: Operation and maintenance.
    Power: Capacity and energy.
    Preference: The requirements of Reclamation Law which provide that 
preference in the sale of Federal power must be given to municipalities 
and other public corporations or agencies and also to cooperatives and 
other nonprofit organizations financed in whole or in part by loans 
under the Rural Electrification Act of 1936 (Reclamation Project Act of 
1939, section 9(c), 43 U.S.C. 485h(c)).
    Project Use: Power used to operate the Lahontan National Fish 
Hatchery and the Marble Bluff Fish Facility, which are project use 
loads of the Washoe Project.
    Provisional Rates: Rate schedules which have been confirmed, 
approved, and placed in effect on an interim basis by the Deputy 
Secretary of DOE.
    PRS: Power repayment study.
    Rate Brochure: A document prepared for public distribution 
explaining the rationale and background of the rate proposal contained 
in this rate order dated March 2000.
    Reclamation: United States Department of the Interior, Bureau of 
Reclamation.
    Reclamation Law: A series of Federal laws. Viewed as a whole, these 
laws create the originating framework in which Western markets power.
    Revenue Requirement: The revenue required to recover the 
reimbursable portion of O&M expenses, project use costs, interest, 
deferred expenses, and repayment of Federal investment within the 
allowable period.
    Secretary: Secretary of Energy.
    SEEA: Stampede Energy Exchange Account.
    Sierra: Sierra Pacific Resources, formally known as the Sierra 
Pacific Power Company.
    Sierra Nevada Region: The Sierra Nevada Customer Service Region of 
Western.
    Stampede: Power system of Washoe Project, Stampede Division.
    Washoe Project: A Federal water project in the Lahontan Basin in 
west-central Nevada and east-central California.
    Western: United States Department of Energy, Western Area Power 
Administration.

Effective Date

    The provisional rates will take effect on the first day of the 
first full billing period beginning on or after October 1, 2000. They 
will be in effect pending FERC's approval of them or substitute rates 
on a final basis through September 30, 2005, or until superseded.

Public Notice and Comment

    Western followed the DOE Procedures for Public Participation in 
Power and Transmission Rate Adjustments and Extensions, 10 CFR part 
903, in developing these rates. Stampede is a power system which has 
annual sales of less than 100 million kWh and an installed capacity of 
less than 20,000 kW; therefore, this rate adjustment constitutes a 
minor rate adjustment as defined in 10 CFR part 903.2(f). Since this is 
a minor rate adjustment, no public meetings were scheduled; however, 
Western accepted comments from interested parties. Western took these 
steps to ensure involvement of interested parties in the rate process:
    1. Published a Federal Register notice on March 28, 2000 (65 FR 
16390), officially announcing the proposed nonfirm power rate 
adjustment and initiating the public consultation and comment period.
    2. Mailed letters on April 3, 2000, to all Washoe customers and 
interested parties transmitting the Federal Register notice of March 
28, 2000, and announcing the beginning of the consultation and comment 
period.
    3. Made a rate brochure available to all interested parties upon 
request in March 2000.
    4. Ended the comment period on April 27, 2000.

Project Description

    The Stampede Dam and Reservoir are on the Little Truckee River 
about 8 miles above the junction of the Little Truckee and Truckee 
Rivers. The dam and reservoir are in Sierra County, California, about 
11 miles northeast of the town of Truckee. The water source for the 
Stampede Reservoir is the Little Truckee River drainage basin 
containing about 136 square miles of densely wooded slopes and grass 
meadowlands.
    When the Stampede Dam and Reservoir project was authorized in 1956, 
hydroelectric power development was included. However, power facilities 
were not constructed at the time the Stampede Dam was built during 
1966-1970, because the power function was not economically justified. 
Nevertheless, provisions were made to facilitate the addition of power 
facilities at a later date.
    Subsequently, preliminary reevaluation of a powerplant at Stampede 
was conducted and published in a special Reclamation report, Adding 
Powerplants at Existing Federal Dams in California (July 1976). In the 
report, Reclamation recommended construction of a Stampede powerplant. 
As a result, definite plan studies were initiated in FY 1977, and 
construction of the powerplant was completed in 1987. A one-half mile 
60-kV transmission line interconnects the Stampede power facilities 
with Sierra's transmission system.
    The Stampede Dam and Reservoir are operated for four specific 
purposes;

[[Page 53293]]

flood control, fisheries enhancement, recreation, and power generation. 
The powerplant is a 3.65 MW generator, and provides about 11 million 
kWh annually. The energy generated by the powerplant has a priority 
reservation for designated project use loads. All remaining energy 
generation is sold on a nonfirm basis, giving priority to preference 
entities. Energy generated at Stampede depends on the run of the river 
and is nonfirm.

Power Repayment Study

    Western prepares a PRS each FY to determine if power revenues will 
be sufficient to pay the revenue requirement in the prescribed time 
periods. Repayment criteria are based on law, policies, and authorizing 
legislation.

Existing and Provisional Rates

    The provisional rates for nonfirm energy sales from Stampede 
consist of floor and ceiling rates and are designed to recover the 
revenue requirement. The formula for the provisional 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 kW or less. This table compares existing and 
provisional rates.

------------------------------------------------------------------------
                                               Provisional
                                  Existing        rates
                                rates as of     beginning      Percent
     Nonfirm energy rates        October 1,     October 1,      change
                                1995  mills/   2000  mills/
                                    kWh            kWh
------------------------------------------------------------------------
Rate Schedule................  SNF-4          SNF-5          ...........
Floor Rate...................  19.26          17.89                   -7
Ceiling Rate.................  80.44          90.07                   12
------------------------------------------------------------------------

Certification of Rates

    Western's Administrator certified that the Stampede nonfirm power 
rates placed into effect on an interim basis are the lowest possible 
rates consistent with sound business principles. The provisional rates 
were developed under administrative policies and applicable laws.

Discussion

    To serve project use loads and market the energy from Stampede, 
Western's contract with Sierra provides for the SEEA. The 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 at 
the provisional floor rate. 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. 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 to Sierra at the provisional floor 
rate or to other entities, giving priority to preference customers, at 
a rate not greater than the provisional ceiling rate but no lower than 
the provisional floor rate. Beginning January 1, 2005, energy available 
after meeting project use requirements will be sold to the CVP at the 
provisional ceiling rate, as provided in the CVP 2004 Marketing Plan.
    The formula for the provisional 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 
kW or less. This provisional floor rate is used to calculate the value 
of the SEEA for the benefit of project use facilities. Western applied 
the ratio of the projected costs for project use service to the 
projected revenue from Stampede generation recorded in the SEEA, to the 
projected power costs to calculate the nonreimbursable costs. The 
reimbursable costs are reduced by revenues from sales made at less than 
the ceiling rate. The remaining reimbursable costs and the estimated 
energy remaining after meeting project use service were used to 
calculate the ceiling rate necessary to repay Stampede costs.

Statement of Revenue and Related Expenses

    This table shows a summary of revenue and expense data through the 
5-year cost evaluation period.

------------------------------------------------------------------------
                                                               Cost
                                                            evaluation
                                                            period for
                                                           rate schedule
                                                               SNF-5
------------------------------------------------------------------------
Revenues................................................      $3,135,275
Revenue Distribution:
    O&M.................................................         553,912
    Project Use.........................................         501,830
    Interest............................................       1,201,814
    Capitalized Expenses................................         877,719
------------------------------------------------------------------------

    This table shows a summary of the average annual revenues and 
expenses for the 5-year cost evaluation period.

------------------------------------------------------------------------
                                                               Cost
                                                            evaluation
                                                          period average
                                                          annual revenue
                                                           and expenses
------------------------------------------------------------------------
Revenues................................................        $627,055
Revenue Distribution:
    O&M.................................................         110,782
    Project Use.........................................         100,366
    Interest............................................         240,363
    Capitalized Expenses................................         175,544
------------------------------------------------------------------------

Basis for Rate Development

    The existing rates for Stampede nonfirm power in Rate Schedule SNF-
4 expire on September 30, 2000. The provisional power rates will 
produce sufficient revenue to pay the revenue requirement. The 
provisional rates take effect on October 1, 2000, to correspond with 
the start of the FY and remain in effect through September 30, 2005.

Comments

    During the 30-day comment period, Western did not receive any 
written comments either requesting information or commenting on the 
rate adjustment.

Environmental Compliance

    In compliance with the NEPA of 1969, 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 determined this 
action is categorically excluded from the preparation of an 
environmental assessment or an environmental impact statement.

[[Page 53294]]

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866. This notice is not required to be cleared by the 
Office of Management and Budget.

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to do 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 this action does not require a regulatory flexibility 
analysis since it is a rulemaking of particular applicability involving 
rates or services applicable to public property.

Small Business Regulatory Enforcement Fairness Act

    Western determined 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.

Availability of Information

    Information about this rate adjustment, including PRSs, letters, 
memorandums, and other supporting material made or kept by Western used 
to develop the provisional rates, is available for public review. This 
information is in the Power Marketing Manager's office, Sierra Nevada 
Customer Service Region, Western Area Power Administration, 114 
Parkshore Drive, Folsom, California.

Submission to the Federal Energy Regulatory Commission

    The provisional rates herein confirmed, approved, and placed into 
effect, together with supporting documents, will be submitted to FERC 
for confirmation and final approval.

Order

    In view of the foregoing and under the authority delegated to me by 
the Secretary of Energy, I confirm and approve on an interim basis, 
effective October 1, 2000, Rate Schedule SNF-5 for the Washoe Project, 
Stampede Division, for the Western Area Power Administration. The rate 
schedule will remain in effect on an interim basis, pending FERC 
confirmation and approval of it or substitute rates on a final basis 
through September 30, 2005.

    Dated: August 22, 2000.

T.J. Glauthier,
Deputy Secretary of Energy.

Rate Schedule for Nonfirm Power Service

    Effective: The first day of the first full billing period beginning 
on or after October 1, 2000, through September 30, 2005.
    Available: In the area served by the Stampede Division.
    Applicable: To power customers for general power service.
    Character and Conditions of Service: Alternating current, 60-hertz, 
three-phase, delivered and metered at the voltages and points 
established by the contract.
    Demand Charge: None.
    Energy Charge: There is a floor and ceiling rate for nonfirm energy 
sales from Stampede. The floor rate is 85 percent of the then 
effective, nontime differentiated rate as provided in Sierra Pacific 
Power Company's California Quarterly Short-Term Purchase Price Schedule 
for as-available purchases from qualifying facilities with capacities 
of 100 kW or less. The ceiling rate is calculated by dividing the 
revenue requirement needed to repay all annual reimbursable power costs 
(less any revenue for sales made at less than the ceiling rate) by the 
nonfirm energy remaining after providing project use service. The 
ceiling rate will be calculated and customers told of changes in the 
ceiling rate by April 1 each year. Sales of nonfirm energy will be made 
at the floor or ceiling rates or at a rate between the floor and 
ceiling rates.
    Adjustments: Stampede energy will be adjusted for losses and 
delivered at Donner Summit Metering Station, Gonder Substation, or 
another point of delivery on Sierra Pacific Power Company's system.

[FR Doc. 00-22512 Filed 8-31-00; 8:45 am]
BILLING CODE 6450-01-P