[Federal Register Volume 66, Number 176 (Tuesday, September 11, 2001)]
[Notices]
[Pages 47207-47208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22699]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Power Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate decrease.

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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-47 which decreases the power rate 
for the Sam Rayburn Dam Hydropower Project (Rayburn) pursuant to the 
following Sam Rayburn Dam Rate Schedule:

    Rate Schedule SRD-01, Wholesale Rates for Hydro Power and 
EnergySold to Sam Rayburn Dam Electric Cooperative, Inc., (Contract 
No. DE-PM75-92SW00215)

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 Rayburn project is $2,168,136 per year. The rate was approved on a 
final basis by the Federal Energy Regulatory Commission on December 7, 
1994, for the period ending September 30, 1998. The rate was extended 
for three years, in one-year intervals, with the most recent effective 
October 1, 2000, through September 30, 2001, in accordance with the 
Secretary of Energy's interim approval, dated September 15, 2000, 65 FR 
55953. The FY 2001 Rayburn Power Repayment Studies indicate the need 
for a decrease in the annual rate of $90,504, or 4.2 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 Forum, to provide an opportunity for customers and other 
interested members of the public to review and comment on a proposed 
rate decrease for the Rayburn project. Both public forums were canceled 
when no one expressed an intention to participate. Written comments 
were accepted through August 9, 2001. Only one comment was received 
from Gillis & Angley, Counsellors at Law, on behalf of Sam Rayburn Dam 
Electric Cooperative, Inc. (SRDEC), which stated that SRDEC (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-47, which decreases the 
existing Rayburn rate to $2,077,632 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 Decreased Power Rate 
Schedule in Effect on an Interim Basis

[Rate Order No. SWPA-47]

    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 (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 into effect on an interim basis 
power and transmission rates 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 into effect on an interim basis power and transmission rates of 
the Power Marketing Administrations. 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

[[Page 47208]]

November 24, 1999, the Secretary of Energy again provided interim rate 
approval authority to the Deputy Secretary of Energy.

Background

    The Sam Rayburn Hydropower Project (Rayburn) is located on the 
Angelina River in the State of Texas in the Neches River Basin. Since 
the beginning of its operation in 1965, it has been marketed as an 
isolated project, under contract with Sam Rayburn Dam Electric 
Cooperative, Inc. (Contract No. DE-PM75-92SW00215).
    In the Federal Energy Regulatory Commission (FERC) Docket No. EF94-
4021-000, issued December 7, 1994, for the period October 1, 1994, 
through September 30, 1998, the FERC confirmed and approved the current 
annual Sam Rayburn Dam rate of $2,168,135. This rate was subsequently 
extended for three years, in one year intervals on an interim basis by 
the Deputy Secretary of Energy or Secretary of Energy under the Rate 
Order and for the periods listed below:

Rate Order SWPA-38, October 1, 1998--September 30, 1999
Rate Order SWPA-40, October 1, 1999--September 30, 2000
Rate Order SWPA-42, October 1, 2000--September 30, 2001

Discussion

    Southwestern's FY 2001 Current Power Repayment Study (PRS) 
indicates that the existing annual power rate of $2,168,135 did not 
represent the lowest possible rate needed to meet cost recovery 
criteria. The reduced revenue requirement is due to a decrease in the 
Corps of Engineers (Corps) future replacement estimates. The Revised 
PRS indicates that a decrease in annual revenues of $90,504 beginning 
in FY 2002 is sufficient to accomplish repayment of the Federal 
investment in the required number of years. Accordingly, Southwestern 
developed a proposed rate schedule based on that decreased revenue 
requirement.
    Title 10, Part 903, Subpart A of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustment,'' has been followed in connection with the proposed rate 
adjustment. More specifically, opportunities for public review and 
comment during a 90-day period on the proposed Rayburn power rate were 
announced by notice published in the Federal Register, May 11, 2001, 66 
FR 24132. A Public Information Forum was to be held June 14, 2001, in 
Tulsa, Oklahoma, and a Public Comment Forum was to be held July 18, 
2001, also in Tulsa. Both forums were canceled as no one expressed an 
intention to participate. Written comments were due by August 9, 2001. 
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. Only one 
formal comment was received from Gillis & Angley, Counsellors at Law, 
on behalf of Sam Rayburn Dam Electric Cooperative, Inc. (SRDEC), which 
stated that SRDEC (the sole customer) had no objection to the proposed 
rate adjustment.
    Upon conclusion of the comment period in August 2001, Southwestern 
finalized the Power Repayment Study and rate schedule for the proposed 
annual rate of $2,077,632 which is the lowest possible rate needed to 
satisfy repayment criteria. This rate represents an annual decrease of 
4.2 percent.
    Information regarding this rate decrease, 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 Rayburn PRS indicates that the annual power 
rate of $2,077,632 will repay all costs of the project, including 
amortization of the power investment 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 Rayburn power rate is consistent with applicable law and the 
lowest possible rate consistent with sound business principles.

Environment

    The environmental impact of the rate decrease 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 Sam Rayburn Dam Rate of $2, 077,632 for 
the sale of power and energy from Sam Rayburn Dam to the Sam Rayburn 
Electric Cooperative, Inc., under Contract No. DE-PM75-92SW00215, dated 
October 7, 1992.

    Dated: August 29, 2001.
Francis S. Blake,
Deputy Secretary.
[FR Doc. 01-22699 Filed 9-10-01; 8:45 am]
BILLING CODE 6450-01-P