[Federal Register Volume 65, Number 180 (Friday, September 15, 2000)]
[Notices]
[Pages 55953-55955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23766]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate Extension on an Interim Basis

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: The Deputy Secretary of Energy, acting under the authorities 
as implemented in 10 CFR 903.22(h) and 903.23(a)(3), has approved and 
placed into effect on an interim basis Rate Order No. SWPA-42.

SUPPLEMENTARY INFORMATION: Southwestern Power Administration 
(Southwestern) currently has marketing responsibility for 2.2 million 
kilowatts of power from 24 multiple-purpose reservoir projects, with 
power facilities constructed and operated by the U.S. Army Corps of 
Engineers, generally in all or portions of the states of Arkansas, 
Kansas, Louisiana, Missouri, Oklahoma and Texas. The Integrated System, 
comprised of 22 of the projects, is interconnected through a 
transmission system presently consisting of 138-kV

[[Page 55954]]

and 161-kV high-voltage transmission lines, 69-kV transmission lines, 
and numerous bulk power substations and switching stations. In 
addition, contractual transmission arrangements provide for integration 
of other projects into the system.
    The remaining two projects, Sam Rayburn Dam and Robert Douglas 
Willis, are isolated hydraulically and electrically from the 
Southwestern transmission system, and their power is marketed under 
separate contracts through which the customer purchases the entire 
power output of the project at the dam. A separate Power Repayment 
Study (PRS) is prepared for each isolated project.
    The existing rate schedule for the Sam Rayburn Dam Project was 
confirmed and approved on a final basis by the Federal Energy 
Regulatory Commission (FERC) on December 7, 1994, for the period 
October 1, 1994, through September 30, 1998. The Deputy Secretary of 
Energy extended the existing rate schedule for a one year period, 
through September 30, 1999. On September 15, 1999, the Secretary of 
Energy again extended the existing rate schedule for a one year period, 
through September 30, 2000. The FY 2000 Sam Rayburn Dam Project PRS 
indicates the need for a rate adjustment of $28,068 annually, or 1.3 
percent.
    Pursuant to implementing authority in 10 CFR 903(h) and 
903.23(a)(3), the Deputy Secretary of Energy may extend a FERC-approved 
rate on an interim basis. The Administrator, Southwestern, published 
notice in the Federal Register on June 26, 2000, 65 FR 39386, 
announcing a 30-day period for public review and comment concerning the 
proposed interim rate extension. Written comments were accepted through 
July 26, 2000. In a facsimile transmission dated July 24, 2000, a Sam 
Rayburn Dam Electric Cooperative (SRDEC) official stated that SRDEC has 
no objection to the proposed rate extension. No other comments were 
received.

Discussion

    The existing Sam Rayburn Dam Project rate is based on the FY 1994 
PRS. PRSs have been completed on the Sam Rayburn Dam Project each year 
since approval of the existing rate. Rate changes identified by the 
PRSs since that period have indicated the need for minimal rate 
increases or decreases. Since the revenue changes reflected by the PRSs 
were within the plus-or-minus two percent Rate Adjustment Threshold 
established by Southwestern's Administrator on June 23, 1987, these 
rate adjustments were deferred in the best interest of the government 
and provided for the next year's PRS to determine the appropriate level 
of revenues needed for the next rate period.
    The FY 2000 PRS indicates the need for an annual revenue increase 
of 1.3 percent. As has been the case since the existing rate was 
approved, the FY 2000 rate adjustment falls within Southwestern's plus-
or-minus two percent Rate Adjustment Threshold and would normally be 
deferred. However, the existing rate expires on September 30, 2000. 
Consequently, Southwestern proposes to extend the existing rate for a 
one-year period ending September 30, 2001, on an interim basis under 
the implementation authorities noted in 10 CFR 903.22(h) and 
903.23(a)(3).
    Southwestern continues to make significant progress toward 
repayment of the Federal investment in the Sam Rayburn Dam Project. 
Through FY 1999, cumulative amortization for the Sam Rayburn Dam 
Project was $12,795,065, which represents approximately 49 percent of 
the $25,845,371 Federal investment. The status has increased almost 34 
percent since the existing rates were placed in effect.
    Information regarding this rate extension, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, Suite 1400, One 
West Third Street, Tulsa, Oklahoma 74103.

Order

    In view of the foregoing and pursuant to the authorities granted in 
10 CFR Sections 903.22(h) and 903.23(a)(3), I hereby extend on an 
interim basis, for the period of one year, effective October 1, 2000, 
the current FERC-approved Sam Rayburn Dam Project Rate for the sale of 
power and energy.

    Dated: September 6, 2000.
T.J. Glauthier,
Deputy Secretary.

In the matter of: Southwestern Power Administration--Sam Rayburn 
Dam Project Rate; Order Approving Extension of Power Rate on an 
Interim Basis

[Rate Order; No. SWPA-42]

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, for the Southwestern Power 
Administration were transferred to and vested in the Secretary of 
Energy. By Delegation Order No. 0204-108, effective December 14, 1983, 
48 FR 55664, the Secretary of Energy delegated to the Deputy Secretary 
of Energy on a non-exclusive basis the authority to confirm, approve 
and place into effect on an interim basis power and transmission rates, 
and delegated to the Federal Energy Regulatory Commission (FERC) on an 
exclusive basis the authority to confirm, approve and place in effect 
on a final basis, or to disapprove power and transmission rates. 
Amendment No. 1 to Delegation Order No. 0204-108, effective May 30, 
1986, 51 FR 19744, revised the delegation of authority to confirm, 
approve and place into effect on an interim basis power and 
transmission rates by delegating such authority to the Under Secretary 
of Energy rather than the Deputy Secretary of Energy. This delegation 
was reassigned to the Deputy Secretary of Energy by Department of 
Energy (DOE) Notice 1110.29, dated October 27, 1988, and clarified by 
Secretary of Energy Notice SEN-10-89, dated August 3, 1989, and 
subsequent revisions.
    By Amendment No. 2 to Delegation Order No. 0204-108, effective 
August 23, 1991, 56 FR 41835, the Secretary of the Department of Energy 
revised Delegation Order No. 0204-108 to delegate to the Assistant 
Secretary, Conservation and Renewable Energy, the authority which was 
previously delegated to the Deputy Secretary in that Delegation Order. 
By Amendment No. 3 to Delegation Order No. 0204-108, effective November 
10, 1993, the Secretary of Energy re-delegated to the Deputy Secretary 
of Energy, the authority to confirm, approve and place into effect on 
an interim basis power and transmission rates of the Power Marketing 
Administrations. Thus, the Deputy Secretary of Energy now exercises 
interim rate approval authority for Southwestern's rates.
    This is an interim rate extension. It is made pursuant to the 
authorities as implemented in 10 CFR 903.22(h) and 903.23(a)(3).

Background

    Southwestern Power Administration (Southwestern) currently has 
marketing responsibility for 2.2 million kilowatts of power from 24 
multiple-purpose reservoir projects, with power facilities constructed 
and operated by the U.S. Army Corps of Engineers, generally in all or 
portions of the states of Arkansas, Kansas, Louisiana, Missouri, 
Oklahoma and Texas. The Integrated System, comprised of 22 of the 
projects, is interconnected through a transmission system presently 
consisting of 138-kV and 161-kV high-voltage transmission

[[Page 55955]]

lines, 69-kV transmission lines, and numerous bulk power substations 
and switching stations. In addition, contractual transmission 
arrangements provide for integration of other projects into the system.
    The remaining two projects, Sam Rayburn Dam and Robert Douglas 
Willis, are isolated hydraulically and electrically from the 
Southwestern transmission system, and their power is marketed under 
separate contracts through which the customer purchases the entire 
power output of the project at the dam. A separate Power Repayment 
Study (PRS) is prepared for each isolated project.
    The existing rate schedule for the Sam Rayburn Dam Project was 
confirmed and approved on a final basis by the Federal Energy 
Regulatory Commission (FERC) on December 7, 1994, for the period 
October 1, 1994, through September 30, 1998. The rate was extended on 
an interim basis by the Deputy Secretary of Energy, who had authority 
at that time pursuant to Delegation Order 0204-108, for a one year 
period, October 1, 1998, through September 30, 1999. The rate was again 
extended on an interim basis by the Secretary of Energy, pursuant to 
Delegation Order 0204-108, for a one year period, October 1, 1999, 
through September 30, 2000. The FY 2000 Sam Rayburn Dam Project PRS 
indicates the need for a rate adjustment of $28,068 annually, or 1.3 
percent.
    Pursuant to implementing authority in 10 CFR 903.22(h) and 
903.23(a)(3), the Deputy Secretary of Energy may extend a FERC-approved 
rate on an interim basis. The Administrator, Southwestern, published 
notice in the Federal Register on June 26, 2000, 65 FR 39386, 
announcing a 30-day period for public review and comment concerning the 
proposed interim rate extension. In addition, an informal meeting was 
held with customer representatives in May 2000. Written comments were 
accepted through July 26, 2000. One comment was received. This comment 
stated no objection to the proposed interim extension.

Discussion

    The existing Sam Rayburn Dam Project rate is based on the FY 1994 
PRS. PRSs have been completed on the Sam Rayburn Dam Project each year 
since approval of the existing rate. Rate changes identified by the 
PRSs since that period have indicated the need for minimal rate 
increases or decreases. Since the revenue changes reflected by the PRSs 
were within the plus-or-minus two percent Rate Adjustment Threshold 
established by Southwestern's Administrator on June 23, 1987, these 
rate adjustments were deferred in the best interest of the government 
and provided for the next year's PRS to determine the appropriate level 
of revenues needed for the next rate period.
    The FY 2000 PRS indicates the need for an annual revenue increase 
of $28,068 (1.3 percent). As has been the case since the existing rates 
were approved, the FY 2000 rate adjustment falls within Southwestern's 
plus-or-minus two percent Rate Adjustment Threshold and would normally 
be deferred. However, the existing rate expires on September 30, 2000. 
Consequently, Southwestern proposes to extend the existing rate for a 
one-year period ending September 30, 2001, on an interim basis under 
the implementation authorities noted in 10 CFR 903.22(h) and 
903.23(a)(3).
    Southwestern continues to make significant progress toward 
repayment of the Federal investment in the Sam Rayburn Dam Project. 
Through FY 1999, cumulative amortization for the Sam Rayburn Dam 
Project was $12,795,065, which represents approximately 49 percent of 
the $25,845,371 Federal investment for the Sam Rayburn Dam Project. The 
cumulative amortization has increased almost 34 percent since the 
existing rate was placed in effect.
    Information regarding this rate extension, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74101.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me in 10 CFR 903, I hereby extend on an interim basis, for the period 
of one year, effective October 1, 2000, the current FERC-approved Sam 
Rayburn Dam Project rate for the sale of power and energy.

    Dated: September 6, 2000.
T.J. Glauthier,
Deputy Secretary.
[FR Doc. 00-23766 Filed 9-14-00; 8:45 am]
BILLING CODE 6450-01-P