[Federal Register Volume 66, Number 26 (Wednesday, February 7, 2001)]
[Notices]
[Pages 9316-9317]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3188]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Proposed Rate Schedule Changes

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate schedule changes for public review and comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has determined that changes to the use of the energy 
imbalance service in the current Rate Schedule NFTS-98C and the power 
factor penalty formula in Rate Schedules P-98C and NFTS-98C are needed. 
In addition, an Interconnection Facilities Service Charge is being 
established in the revised NFTS-98C rate schedule. This charge will 
provide compensation to Southwestern when other entities use facilities 
of the Federal government through interconnections for which no other 
benefits are being received. Other areas within the rate schedules have 
been modified for clarity or eliminated if no longer applicable. Since 
the proposed changes to the rate schedules are associated with the 
terms and conditions of current service and the establishment of a new 
charge for which Southwestern currently has no contractual 
arrangements, there is no immediate impact on the previously 
established revenue requirements for Southwestern's Integrated System. 
Consequently, the net result of the revenue requirements projected in 
the 1997 Integrated System Power Repayment Studies, which provided the 
basis for the existing rate schedules, is not changed.

DATES: Written comments on the proposed rate schedule changes are due 
on or before March 9, 2001.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, (918) 595-6696, 
[email protected].

SUPPLEMENTARY INFORMATION: The names of the rate schedules will be 
changed from P-98C and NFTS-98C to P-98D and NFTS-98D, respectively, in 
order to reflect the fact that changes have been made. These rate 
schedules are being changed at this time to address, prior to the 
summer electrical peak period, previously unforeseen problems that have 
arisen as a result of the time differential in the price of power. The 
provisions of the rate schedules being changed are: (1) The Limitations 
on Energy Imbalance Service; (2) the Power Factor Penalty; (3) the 
addition of an Interconnection Facilities Service Charge; and, (4) 
modifications to enhance clarity within the rate schedules. The 
proposed changes are described below:
    The Limitations on Energy Imbalance Service in the proposed NFTS-
98D rate schedule has been changed to better clarify the hours and 
circumstances in which energy within the authorized bandwidth is to be 
returned to the providing party. The current rate schedule provided for 
energy within the authorized bandwidth to be returned to Southwestern 
``in like hours and similar circumstances.'' The lack of definition in 
this language provided an opportunity for customers to use the 
bandwidth during high-value peak demand periods and to return the 
energy during low-value off-peak demand periods. The need to be more 
explicit regarding the like hours and circumstances for return of the 
energy is important, particularly during summer peak periods when the 
value of energy is high and the capability of Southwestern to provide 
such energy during those times is typically low.
    The Power Factor Penalty is being changed in the proposed P-98D and 
NFTS-98D rate schedules to more accurately charge for the reactive 
kilovolt amperes (rkVA or VARs) taken from the System of Southwestern 
during any particular hour which contribute to power factors less than 
95 percent, rather than the current process which charges for the 
customer's peak demand in kilowatts for the month in which a low power 
factor was calculated. This revised penalty more closely ties the 
provision to the actual VARs taken from the System of Southwestern. In 
addition, Southwestern has expanded the application of this penalty to 
provide for a charge at interconnections that could also experience a 
low power factor.
    Southwestern is adding a new provision to the NFTS-98D rate 
schedule for an Interconnection Facilities Service Charge. This charge 
will be applicable to those customers who request an interconnection on 
the System of Southwestern that does not provide commensurate 
transmission system support benefits or compensation to Southwestern 
for the use of Federal facilities. In order for Southwestern to provide 
an interconnection on its system, Southwestern has historically and 
must continue to secure commensurate benefits for the use of its 
facilities to assure that the Federal Government is compensated for the 
use of such facilities, thereby recovering its costs, and to assure 
that all customers are charged the same for the same type of service. 
The charge for this service has been set at $0.69 per kilowatt per 
month, which represents the cost of Southwestern's facilities being 
used.
    Redlined versions of the revised rate schedules P-98D and NFTS-98D 
are available upon request. To request a copy, please contact Barbara 
Otte at 918-595-6674 or at [email protected] or Tracey Hannon at 918-595-
6677 or at [email protected].
    The Administrator has determined that written comments will provide 
adequate opportunity for public participation in the rate schedule 
revision process. Therefore, an opportunity is presented for interested 
parties to submit written comments on the proposed rate schedule 
changes. Written comments are due no later than thirty (30) days 
following publication of this notice in the Federal Register. Five 
copies of written comments should be submitted to: Forrest E. Reeves, 
Assistant Administrator, Southwestern Power Administration, One West 
Third Street, Suite 1400, Tulsa, OK 74103.
    Following review and consideration of written comments, the 
Administrator will finalize and submit the proposed rate schedules to 
the Deputy Secretary of Energy for approval on an interim basis. The 
Deputy Secretary will then

[[Page 9317]]

forward the proposed rate schedules to the Federal Energy Regulatory 
Commission for confirmation and approval on a final basis.

    Issued at Tulsa, Oklahoma this 24th day of January 2001.
Michael A. Deihl,
Administrator.
[FR Doc. 01-3188 Filed 2-6-01; 8:45 am]
BILLING CODE 6450-01-P