[Federal Register Volume 66, Number 176 (Tuesday, September 11, 2001)]
[Notices]
[Pages 47205-47207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22698]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Robert Douglas Willis Power Rate Schedule

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate increase.

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SUMMARY: Pursuant to Delegation Order No. 0204-172, November 24, 1999, 
the Deputy Secretary of Energy has approved and placed into effect on 
an interim basis Rate Order No. SWPA-46 which increases the power rate 
for the Robert Douglas Willis Hydropower (Robert D. Willis) Project 
pursuant to the following Robert D. Willis Rate Schedule:

    Rate Schedule RDW-01, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Municipal Power Agency (Contract No. DE-PM75-
85SW00117)


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 
74103-3519, (918) 595-6696, [email protected].

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for 
the Robert D. Willis project is $337,932 per year. The rate was 
approved on a final basis by the Federal Energy Regulatory Commission 
on January 20, 2000, for the period ending September 30, 2003. The FY 
2001 Robert D. Willis Power Repayment Studies indicates the need for an 
increase in the annual rate by $15,768 or 4.7 percent beginning October 
1, 2001.
    The Administrator, Southwestern Power Administration (Southwestern) 
has followed 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) in connection 
with the proposed rate schedule. On May 11, 2001, Southwestern 
published notice in the Federal Register, 66 FR 24132, of a 90-day 
comment period, together with a Public Information Forum and a Public 
Comment Form, to provide an opportunity for customers and other 
interested members of the public to review and comment on a proposed 
rate increase for the Robert D. Willis project. Both public forums were 
canceled when no one expressed an intention to participate. Written 
comments were accepted through August 9, 2001. One comment was received 
from Gillis & Angley, Counsellors at Law, on behalf of Sam Rayburn 
Municipal Power Agency (SRMPA), which stated that SRMPA (the sole 
customer) had no objection to the proposed rate adjustment.
    Information regarding this rate proposal, 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.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved Rate Order No. SWPA-46, which increases the 
existing Robert D. Willis rate to $353,700 per year for the period 
October 1, 2001, through September 30, 2005.

    Dated: August 29, 2001.
Francis S. Blake,
Deputy Secretary.

Order Confirming, Approving and Placing Increased Power Rate 
Schedule in Effect on an Interim Basis

[Rate Order No. SWPA-46]

    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

[[Page 47206]]

(Southwestern) 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 power and transmission rates into effect on an 
interim basis by delegating such authority to the Under 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 delegated 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.

Background

    Dam B (Town Bluff Dam), located on the Neches River in eastern 
Texas downstream from the Sam Rayburn Dam, was originally constructed 
in 1951 by the U.S. Army Corps of Engineers (Corps) and provides 
streamflow regulation of releases from the Sam Rayburn Dam. The Lower 
Neches Valley Authority contributed funds toward construction of both 
projects and makes established annual payments for the right to 
withdraw up to 2000 cubic feet of water per second from Town Bluff Dam 
for its own use. Power was legislatively authorized at the project, but 
installation of hydroelectric facilities was deferred until justified 
by economic conditions. A determination of feasibility was made in a 
1982 Corps study. In 1983, the Sam Rayburn Municipal Power Agency 
(SRMPA) proposed to sponsor and finance the development at Town Bluff 
Dam in return for the output of the project to be delivered to its 
member municipalities and participating member cooperatives of the Sam 
Rayburn Dam Electric Cooperative. Since the hydroelectric facilities at 
the Town Bluff Dam have been completed, the facilities have been 
renamed the Robert Douglas Willis Hydropower Project (Robert D. 
Willis).
    The Robert D. Willis rate is unique in that it excludes the costs 
associated with the hydropower design and construction performed by the 
Corps, because all funds for these costs were provided by SRMPA. Under 
the Southwestern/SRMPA power sales Contract No. DE-PM75-85SW00117, 
SRMPA will continue to pay all annual operating and marketing costs, as 
well as expected capital replacement costs, through the rate paid to 
Southwestern, and will receive all power and energy produced at the 
project for a period of 50 years.
    The existing rate for the Robert D. Willis project was approved by 
the Federal Energy Regulatory Commission (FERC) on January 20, 2000, 
for the period October 1, 1999, through September 30, 2003.

Discussion

    The 2001 Current Robert D. Willis PRS tests the adequacy of the 
existing rate, based on the latest cost evaluation period extending 
from FY 2001 through FY 2005, to cover annual expenses for marketing, 
operation and maintenance, and to amortize additions to plant and major 
replacements of the generating facilities. The Current PRS for the 
Robert D. Willis project, using the existing annual rate of $337,932, 
indicates that the legal requirements to repay all costs will not be 
met without additional revenue. This shortfall is primarily a result of 
increased operations and maintenance expenses estimated by the Corps. 
The Revised PRS shows that an additional $15,768 (4.7 percent) annually 
is needed to satisfy repayment criteria. Accordingly, Southwestern 
developed a rate schedule with a proposed annual rate of $353,700 that 
would satisfy repayment criteria.
    Pursuant to Title 10, Part 903, Subpart A of the Code of Federal 
Regulations (10 CFR 903.21), ``Procedures for Public Participation in 
Power and Transmission Rate Adjustments and Extensions'', 50 FR 37837, 
the Administrator, published notice in the Federal Register on May 11, 
2001, 66 FR 24132, announcing a 90-day period for public review and 
comment concerning the proposed interim rate increase. Southwestern 
provided notice of the Federal Register, together with supporting data, 
to the customer and interested parties for review and comment during 
the formal period of public participation. In addition, prior to the 
formal 90-day public participation process, Southwestern met with the 
customer and their representative to discuss with them preliminary 
information on the proposed rate adjustment. As there was no request 
for public forums, none were held. One formal comment was received on 
behalf of the sole customer SRMPA, that expressed no objection to the 
proposed rate.
    Upon conclusion of the comment period, Southwestern finalized the 
Power Repayment Studies and rate schedule for the proposed annual rate 
of $353,700 which is the lowest possible rate needed to satisfy 
repayment criteria. This rate represents an increase of 4.7 percent 
over the existing rate.
    Information regarding this rate increase, 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 74103-3519.

Comments and Responses

    Southwestern received one written comment in which the customer 
representative expressed no objection to the proposed rate adjustment.

Other Issues

    There were no other issues raised during the informal meeting or 
during the formal public participation period.

Administrator's Certification

    The FY 2001 Revised Robert D. Willis PRS indicates that the annual 
power rate of $353,700 will repay all costs of the project, including 
amortization of additions to plant and major replacements of the 
generating facilities consistent with provisions of the Department of 
Energy (DOE) Order No. RA 6120.2. In accordance with Delegation Order 
No. 0204-172, November 24, 1999, and Section 5 of the Flood Control Act 
of 1944, the Administrator has determined that the proposed Robert D. 
Willis power rate is consistent with applicable law and the

[[Page 47207]]

lowest possible rate consistent with sound business principles.

Environment

    The environmental impact of the rate increase proposal was 
evaluated in consideration of DOE's guidelines for implementing the 
procedural provisions of the National Environmental Policy Act, 10 CFR 
1021, and was 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.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm, approve and place in 
effect on an interim basis, for the period October 1, 2001, through 
September 30, 2005, the annual Robert D. Willis rate of $353,700 for 
the sale of power and energy from Robert D. Willis project to the Sam 
Rayburn Municipal Power Agency, under Contract No. DE-PM75-85SW00117, 
as amended. This rate shall remain in effect on an interim basis 
through September 30, 2005, or until the FERC confirms and approves the 
rate on a final basis.

    Dated: August 29, 2001.
Francis S. Blake,
Deputy Secretary.
[FR Doc. 01-22698 Filed 9-10-01; 8:45 am]
BILLING CODE 6450-01-P