[Federal Register Volume 66, Number 151 (Monday, August 6, 2001)]
[Notices]
[Pages 41023-41024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19575]


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DEPARTMENT OF ENERGY

Southwestern Power Administration

[Rate Order No. SWPA-45]


Integrated System Power Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of extension.

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SUMMARY: Pursuant to Delegation Order No. 0204-172, November 24, 1999, 
and pursuant to the implementation authorities in 10 CFR 903.22(h) and 
903.23(a)(3), the Deputy Secretary of Energy has approved and placed 
into effect on an interim basis Rate Order No. SWPA-45 which extends 
the existing power rates for the Integrated System. This is an interim 
rate action effective October 1, 2001, extending for a period of one 
year through September 30, 2002.

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

SUPPLEMENTARY INFORMATION: The current rate schedules for the 
Integrated System were confirmed and approved on a final basis by the 
Federal Energy Regulatory Commission (FERC) on April 29, 1998, for the 
period January 1, 1998, through September 30, 2001.
    Title 10, Part 903 Subpart A, of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustments and Extensions'' (Part 903) have been followed in 
connection with the proposed extension of the rate schedules. An 
opportunity for customers and other interested members of the public to 
review and comment on the proposed extension was announced by notice 
published in the Federal Register (66 FR 24131), May 11, 2001, with 
written comments due on or before June 11, 2001. In addition, 
Southwestern held informal meetings with numerous customers in which 
proposed changes were discussed. No written comments were received.
    Information regarding extension of these rate schedules, 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. 10 CFR 903.22(h) 
and 903.23(a)(3) provide implementation authority for such extension to 
the Deputy Secretary.

    Dated: July 26, 2001.
Francis S. Blake,
Deputy Secretary.

Order Approving Extension of Power Rates on an Interim Basis

    Pursuant to Sections 301(b) and 302(a) 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 power and transmission rates into effect on an interim basis, 
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 power and transmission rates of the Power Marketing 
Administrations into effect on an interim basis. By notice, dated April 
15, 1999, the Secretary of Energy rescinded the authority of the Deputy 
Secretary of Energy under Delegation Order No. 0204-108. By Delegation 
Order No. 0204-172, effective November 24, 1999, the Secretary of 
Energy again provided interim rate approval authority to the Deputy 
Secretary of Energy.
    This is an interim rate extension. 10 CFR 903.22(h) and 
903.23(a)(3) provide implementation authority for such extension to the 
Deputy Secretary of Energy.

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 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 hydrologically 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 current rate schedules for the Integrated System were confirmed 
and approved on a final basis by the Federal Energy Regulatory 
Commission (FERC) on April 29, 1998, for the period January 1, 1998, 
through 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 designated 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

[[Page 41024]]

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 FY 1997 Integrated System Power Repayment 
Studies which provided the basis for the existing rate schedules, is 
not changed. The FY 2001 Integrated System PRS indicates the need for a 
rate adjustment of $1,938,809 annually, or 1.8 percent.
    Pursuant to 10 CFR 903, the Administrator, Southwestern, published 
notice in the Federal Register on May 11, 2001, 66 FR 24132, 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 April 2001 in which the proposed extension 
was discussed. Written comments were accepted through June 11, 2001. No 
written comments were received.

Discussion

    The existing Integrated System rates are based on the FY 1997 PRS. 
PRSs have been completed on the Integrated System each year since 
approval of the existing rates. 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 2001 PRS indicates the need for an annual revenue increase 
of $1,968,809 (1.8 percent). As has been the case since the existing 
rates were approved, the FY 2001 rate adjustment falls within 
Southwestern's plus-or-minus two percent Rate Adjustment Threshold and 
would normally be deferred with no rate filing necessary. However, the 
existing rates expire on September 30, 2001. Consequently, Southwestern 
proposes to extend the existing rates for a one-year period ending 
September 30, 2002, 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 Integrated System. Through 
FY 2000, cumulative amortization for the Integrated System was 
$465,190,979, which represents approximately 43 percent of the 
$1,083,643,907 Federal investment in the Integrated System.

Comments and Responses

    Southwestern has received no formal written comments regarding the 
extension of the Integrated System rate schedules.
    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 74103.

Administrator's Certification

    The revised rate schedules will repay all costs of the Integrated 
System including amortization of the power investment consistent with 
the provisions of Department of Energy Order No. RA 6120.2. In 
accordance with Section 1 of Delegation Order No. 0204-108, as amended 
November 10, 1993, 58 FR 59717, and Section 5 of the Flood Control Act 
of 1944, the Administrator has determined that the existing Integrated 
System Rate Schedules are the lowest possible rates consistent with 
sound business principles, and their extension is consistent with 
applicable law.

Environment

    No additional evaluation of the environmental impact of the 
extension of the existing rate schedules was conducted since no change 
has been made to the currently-approved Integrated System rates which 
were determined to fall within the class of actions that are 
categorically excluded from the requirements of preparing either an 
Environmental Impact Statement or an Environmental Assessment pursuant 
to the procedural provisions of the National Environmental Policy Act, 
10 CFR 1021.

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, 2001, the current Integrated System 
wholesale rates for Hydro Peaking Power, Non-Federal Transmission/
Interconnection Facilities Service and Excess Energy.

    Dated: July 26, 2001.
Francis S. Blake,
Deputy Secretary.
[FR Doc. 01-19575 Filed 8-3-01; 8:45 am]
BILLING CODE 6450-01-P