[Federal Register Volume 66, Number 92 (Friday, May 11, 2001)]
[Notices]
[Pages 24131-24132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11929]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed extension.

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SUMMARY: Southwestern Power Administration's (Southwestern's) current 
Integrated System Rate Schedules P-98D, NFTS-98D and EE-98 expire 
September 30, 2001. Southwestern's Administrator has prepared Current 
and Revised Fiscal Year (FY) 2001 Power Repayment Studies for the 
Integrated System which show the need for a rate adjustment of 
$1,876,231 (1.8 percent increase) in annual revenues. It is proposed 
that this rate adjustment will be deferred in accordance with 
Southwestern's rate adjustment threshold and that an extension of the 
aforementioned rate schedules from October 1, 2001 to September 30, 
2002, will be sent to the Deputy Secretary of Energy for interim 
approval.

DATES: Written comments are due on or before June 11. 2001.

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: Forrest E. Reeves,Assistant 
Administrator,Office of Corporate Operations,Southwestern Power 
Administration,Department of Energy,One West Third Street,Tulsa, 
Oklahoma 74103,(918) 595-6696, [email protected]

SUPPLEMENTARY INFORMATION:

a. Decision

    Following DOE Order Number RA 6120.2, Southwestern's Administrator 
prepared a FY 2001 Current Power Repayment Study (PRS) using the 
existing Integrated System rate schedules. The Current PRS showed that 
current revenues were insufficient to meet repayment criteria. The FY 
2001 Revised PRS indicates that an increase in annual revenues of 
$1,876,231, or 1.8 percent would satisfy cost recovery requirements.
    Southwestern generally defers an indicated rate adjustment that 
falls within Southwestern's plus-or-minus two percent rate adjustment 
threshold. The threshold was developed to minimize Southwestern's costs 
while still maintaining adequate rates and is consistent with cost 
recovery criteria within DOE Order Number RA 6120.2 regarding rate 
adjustment plans. As a result of the benefits of reduced Federal 
expense and rate stability obtained by a rate adjustment deferral, 
Southwestern's Administrator is proposing to extend the current 
Integrated System Rate Schedules (P-98D, NFTS-98D and EE-98). The rate 
schedules are to be effective for a one-year period beginning

[[Page 24132]]

October 1, 2001, and extending through September 30, 2002.
    Following review of the written comments (absent any substantive 
reasons to do otherwise), the Administrator will submit the rate 
extension proposal for the Integrated System to the Deputy Secretary of 
Energy for confirmation and interim approval.

b. Rationale for the Decision

    The Integrated System's FY 2000 (last year's) PRS concluded that 
the annual revenues needed to be increased by 0.4 percent. At that 
time, it was determined prudent to defer the increase in accordance 
with the established threshold and the current rate schedule was 
continued for one year. It once again seems prudent to defer this 
potential rate adjustment in accordance with Southwestern's rate 
adjustment threshold and re-evaluate the ability of the existing rate 
to provide sufficient revenues to satisfy costs projected in the FY 
2002 (next year's) PRS. In accordance with 10 CFR Sections 903.22(h) 
and 903.23(a)(3), the Deputy Secretary may extend existing rates on an 
interim basis beyond the period specified by the FERC.
    The current rate schedules for the Integrated System were confirmed 
and approved by the FERC on a final basis on April 29, 1998, for a 
period that is to end September 30, 2001. Since initial FERC approval, 
specific provisions within rate schedules P-98A and NFTS-98 have been 
revised to address issues that have arisen from restructuring of the 
electric industry. Rate schedules were redesignated 98B, 98C and 98D 
with each revision. All subsequent revisions of the Integrated System 
rate schedules through 98C have been approved by FERC. Rate schedules 
P-98D and NFTS-98D are currently under FERC review for final approval. 
These revisions had no impacts on the initially established revenue 
requirements for Southwestern's Integrated System. In addition, no 
change was made to the expiration date, September 30, 2001. 
Consequently, the net result of the revenue requirements projected in 
the FY1997 Integrated System Power Repayment Studies, which provided 
the basis for the existing rate schedules, is not changed.

c. 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 (Corps). These projects are located in the 
States of Arkansas, Missouri, Oklahoma and Texas. Southwestern's 
marketing area includes these states plus Kansas and Louisiana. 
Southwestern's Integrated System is comprised of 22 of these projects 
interconnected through Southwestern's transmission system and exchange 
agreements with other utilities. The other two projects (Sam Rayburn 
and Robert Douglas Willis) are not interconnected with Southwestern's 
Integrated System. Their power is marketed under contracts through 
which two customers purchase the entire power output of each of the 
projects at the dams.

d. Availability of Information

    Opportunity is presented for customers and interested parties to 
receive copies of the study data for the Integrated System. If you 
desire a copy of this information, please submit your request to: Mr. 
James W. Sherwood, Division Director, Division of Rates and Repayment, 
Office of Corporate Operations, One West Third Street, Tulsa, OK 74103, 
call (918) 595-6673 or e-mail [email protected].

    Dated: April 26, 2001.
Michael A. Deihl,
Administrator.
[FR Doc. 01-11929 Filed 5-10-01; 8:45 am]
BILLING CODE 6450-01-P