[Federal Register Volume 66, Number 92 (Friday, May 11, 2001)]
[Notices]
[Pages 24132-24133]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11928]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Proposed Sam Rayburn and Robert D. Willis Project Power Rate 
Changes

AGENCY: Southwestern Power Administration, (DOE).

ACTION: Notice of opportunities for public review and comment

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has prepared Current and Revised 2001 Power Repayment 
Studies (PRS) for the Sam Rayburn Dam (Rayburn) and Robert D. Willis 
(Willis) projects that demonstrate the need for an adjustment in annual 
revenues required to meet cost recovery criteria for each project. The 
PRS for Rayburn indicates the need for an annual revenue decrease of 
$90,504. This decrease results from a decrease in projected 
replacements. The PRS for the Willis project indicates the need for an 
annual revenue increase of $12,816. The Willis increase results from an 
increase in the annual estimates for Operations and Maintenance costs 
of the Corps of Engineers. The Administrator has developed proposed 
rate schedules for the Rayburn and Willis projects to assure recovery 
of the required costs. The proposed rate adjustment for the Rayburn 
project would decrease annual revenues from $2,168,136 to $2,077,632 or 
4.2 percent. The proposed Willis rate adjustment increases annual 
revenues approximately 3.8 percent from $337,932 to $350,748. Both rate 
changes will be effective October 1, 2001.

DATES: A Public Information Forum has been scheduled for June 14, 2001, 
in Tulsa Oklahoma. A Public Comment Forum will be held July 18, 2001, 
in Tulsa, Oklahoma. Written comments are due on or before August 9, 
2001. Southwestern is conducting a 90 day public notice and comment 
period (10 CFR 903.14(d)) to process both the Rayburn and Willis rate 
adjustments at the same time.

ADDRESSES: Written comments should be submitted to the Administrator, 
Southwestern Power Administration, U.S. Department of Energy, One West 
Third Street, Tulsa, Oklahoma 74103.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves,Assistant 
Administrator,Office of Corporate Operations,Southwestern Power 
Administration,U.S. Department of Energy,One West Third Street,Tulsa, 
Oklahoma 74103,(918) 595-6696.

SUPPLEMENTARY INFORMATION:

a. Background

    The U.S. Department of Energy was created by an Act of the U.S. 
Congress, Department of Energy Organization Act, Pub. L. 95-91, dated 
August 4, 1977, and Southwestern's power marketing activities were 
transferred from the Department of the Interior to the Department of 
Energy, effective October 1, 1977.
    Southwestern markets power from 24 multiple-purpose reservoir 
projects with power facilities constructed and operated by the U.S. 
Army Corps of Engineers. These projects are located in the states of 
Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area 
includes these states plus Kansas and Louisiana. Of the total, 22 
projects comprise an Integrated System and are interconnected through 
Southwestern's transmission system and exchange agreements with other 
utilities. The Rayburn project, located in eastern Texas, is not 
interconnected

[[Page 24133]]

with Southwestern's Integrated System hydraulically, electrically, or 
financially. Instead, the power produced by the Rayburn project is 
marketed by Southwestern as an isolated project under a contract 
through which the customer purchases the entire power output of the 
project at the dam. The Willis project, located on the Neches River 
downstream from the Rayburn, consists of two 4,000 kilowatt 
hydroelectric generating units. It, like the Rayburn project, is 
marketed as an isolated project under a contract through which the 
customer receives the entire output of the project for a period of 50 
years as a result of funding the construction of the hydroelectric 
facilities at the project. A separate PRS is prepared for each project 
based on its isolated project determination.

b. Decision and Rationale

    Following Department of Energy Order Number RA 6120.2, the 
Administrator, Southwestern, prepared a Current PRS for the Rayburn 
project using the existing annual rate of $2,168,136. The study 
indicates that by maintaining the current rate, surpluses would result 
in FY 2018, the year the project investment is due, and in the 50th 
year of the study. This is primarily the result of reduced estimated 
replacement investment. The Revised PRS indicates that by decreasing 
revenues $90,504 (4.2 percent) annually, repayment criteria would 
continue to be met.
    The Current PRS for the Willis project indicates that by 
maintaining the current rate, a revenue deficit is shown for the 
project. This is primarily a result of an increase in the Corps of 
Engineers estimated Operations and Maintenance costs. The Revised PRS 
for the Willis project shows that an increase of $12,816 (3.8 percent) 
annually will be sufficient to satisfy repayment criteria. This 
increase would change annual revenues produced by the Willis Project 
from $337,932 to $350,748 and satisfy the present financial criteria 
for repayment of the project.

c. Availability of Information

    Opportunity is presented for customers and interested parties to 
receive copies of the studies and proposed rate schedule for the 
Rayburn and Willis projects. If you desire a copy of the Repayment 
Study Data Package for these projects, please submit your request to: 
Mr. James W. Sherwood, Director, Division of Rates and Repayment, One 
West Third Street, Tulsa, OK 74103, (918) 595-6673 or e-mail 
[email protected].
    A Public Information Forum is scheduled to be held at 1:30 p.m., 
central daylight time (C.D.T.) Thursday, June 14, 2001, in 
Southwestern's offices, room 1600, Williams Center Tower 1, One West 
Third Street, Tulsa, Oklahoma. The Forum is to explain to customers and 
interested parties the proposed rates and supporting studies. The Forum 
will be conducted by a chairperson who will be responsible for orderly 
procedure. Questions concerning the rates, studies and information 
presented at the forum may be submitted from interested persons and 
will be answered, to the extent possible, at the forum. Questions not 
answered at the Forum will be answered in writing, except the questions 
involving voluminous data contained in Southwestern's records may best 
be answered by consultation and review of pertinent records at 
Southwestern's offices. Persons interested in attending the Public 
Information Forum should indicate in writing by 4 p.m., C.D.T., Friday, 
June 8, 2001, their intent to appear at such Forum. Accordingly, if no 
one so indicates their intent to attend, no such Forum will be held.
    A Public Comment Forum is scheduled to be held at 1:30 p.m., 
C.D.T., Thursday, July 18, 2001, at the same location established for 
the Public Information Forum. At the Public Comment Forum, interested 
persons may submit written comments or make oral presentations of their 
views and comments. This forum will also be conducted by a chairperson 
who will be responsible for orderly procedure. Southwestern's 
representatives will be present, and they and the chairperson may ask 
questions of speakers. The chairperson may allow others to speak if 
time permits. Persons interested in attending or speaking at the Public 
Comment Forum should indicate in writing by 4 p.m., C.D.T., Friday, 
July 13, 2001, their intent to appear at such Forum. Accordingly, if no 
one so indicates their intent to attend, no such Forum will be held.
    A transcript of each Forum will be made. Copies of the transcripts 
may be obtained from the transcribing service. Copies of all documents 
introduced will be available from Southwestern upon request, for a fee. 
Written comments on the proposed rates for the Rayburn and Willis 
projects are due on or before 90 days from publication of this notice 
in the Federal Register. Written comments should be submitted to the 
Administrator, Southwestern Power Administration, U. S. Department of 
Energy, One West Third Street, Tulsa, Oklahoma 74103.
    Following review of the oral and written comments, the 
Administrator will submit the rate proposals and the Power Repayment 
Studies for the Rayburn and Willis projects, in support of the proposed 
rates, to the Deputy Secretary of Energy for confirmation and approval 
on an interim basis and then to the Federal Energy Regulatory 
Commission (FERC) for confirmation and approval on a final basis. The 
FERC will allow the public an additional opportunity to provide written 
comments on the proposed rate adjustments before making a final 
decision.

    Dated: April 27, 2001.
George C. Grisaffe,
Acting Administrator.
[FR Doc. 01-11928 Filed 5-10-01; 8:45 am]
BILLING CODE 6450-01-P