[Federal Register Volume 67, Number 39 (Wednesday, February 27, 2002)]
[Notices]
[Pages 8964-8965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4617]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed base charge and rates adjustment.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
an adjustment to the Boulder Canyon Project (BCP) firm power base 
charge and rates. The current base charge and rates expire September 
30, 2002. The current base charge is not sufficient to pay all annual 
costs including operation, maintenance, replacement, and interest 
expenses, and to repay investment obligations within the required 
period. The proposed base charge will provide sufficient revenue to pay 
all annual costs, including operation, maintenance, replacement, and 
interest expenses, and to repay investment obligations within the 
allowable period. A detailed rate package that identifies the reasons 
for the base charge and rates adjustment will be available in March 
2002. The proposed base charge and rates are scheduled to become 
effective on October 1, 2002, the beginning of Federal fiscal year (FY) 
2003, and will remain in effect through September 30, 2003. This 
Federal Register notice initiates the formal process for the proposed 
base charge and rates.

DATES: The consultation and comment period will begin today and will 
end May 28, 2002. Western representatives will explain the proposed 
base charge and rates at a public information forum on April 4, 2002, 
beginning at 10 a.m. MST, Phoenix, AZ. Interested parties can provide 
oral and written comments at a public comment forum on April 25, 2002, 
beginning at 10 a.m. MST, at the same location.

ADDRESSES: The meetings will be held at the Desert Southwest Customer 
Service Regional Office 615 South 43rd Avenue, Phoenix, Arizona. If you 
are interested in sending comments, address them to: Mr. J. Tyler 
Carlson, Regional Manager, Desert Southwest Customer Service Region, 
Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-
6457, e-mail: [email protected]. Comments must be received by Western by 
the end of the consultation and comment period to be assured 
consideration.

FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602) 
352-2768, e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Proposed Base Charge and Rates for BCP Firm Power

    The proposed base charge and rates for BCP firm power service are 
designed to recover an annual revenue requirement that includes the 
investment repayment, interest, operation and maintenance, 
replacements, payment to states, visitor services, and uprating 
payments. These annual costs are reduced by the projected revenue from 
water sales, visitor services, water pump energy sales, facility use 
charges, regulation services, miscellaneous leases, late fees, and the 
prior year carryover to determine the annual revenue requirement. The 
projected annual revenue requirement is the base charge for firm power 
service and is divided equally between capacity dollars and energy 
dollars. Annual energy dollars are divided by annual energy sales, and 
annual capacity dollars are divided by annual capacity sales to 
determine the proposed energy rate and the proposed capacity rate.
    The Deputy Secretary of the Department of Energy (DOE) approved the 
existing rate formula for calculating the base charge and rates in Rate 
Schedule BCP-F6 for BCP firm power service on August 29, 2001, (Rate 
Order No. WAPA-94, October 13, 2000). The Federal Energy Regulatory 
Commission (FERC) confirmed and approved the rate formula on a final 
basis in Docket No. EF00-5092-000 issued July 31, 2001. Rate Schedule 
BCP-F6 became effective on October 1, 2000, for the period ending 
September 30, 2005. Under Rate Schedule BCP-F6, for FY 2002, the base 
charge is $48,039,988, the forecasted energy rate is 5.33 mills per 
kilowatthour (mills/kWh) and the forecasted capacity rate is $0.99 per 
kilowattmonth (kWmonth). The composite rate is 10.32 mills/kWh.
    The FY 2003 proposed base charge is $58,993,730, the forecasted 
energy rate is 6.22 mills/kWh, and the forecasted capacity rate is 
$1.26/kWmonth. The proposed composite rate is 12.44 mills/kWh. This is 
approximately a 21 percent increase from the current composite rate. 
The proposed base charge and rates are based on the FY 2003 operating 
plan for Western and the Bureau of Reclamation (Reclamation), and also 
account for the restrictions in operations at the Hoover Dam following 
the September 11, 2001 terrorist attack in the United States. The 
following table compares the current and proposed base charge and 
rates.

                            Comparison of Current and Proposed Base Charge and Rates
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                                                                    Proposed Oct.
           Current Oct. 1, 2001 through Sept. 30, 2002             1, 2002 through   Percent change
                                                                    Sept. 30, 2003      increase
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Total Composite (mills/kWh)......................................            10.32            12.44           21
Base Charge ($)..................................................       48,039,988       58,993,730           23
Energy Rate (mills/kWh)..........................................             5.33             6.22           17
Capacity Rate ($/kWmonth)........................................             0.99             1.26           27
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[[Page 8965]]

    The increase in the base charge and rates results from higher 
annual costs and lower non-power revenues. The significant increase in 
annual costs is due to increased security staff at Hoover Dam, and 
limitations on public tours at the Hoover visitor center. Another 
contributing factor is an increase in the replacement costs.

Procedural Requirements

    Although the proposed base charge and rates do not constitute a 
major rate adjustment as defined by the procedures for public 
participation in general rate adjustments, Western will hold both a 
public information forum and a public comment forum. After considering 
comments, Western will recommend the proposed base charge and rates for 
final approval by the DOE Deputy Secretary.
    The proposed firm power service base charge and rates for BCP are 
being established pursuant to the DOE Organization Act 42 U.S.C. 7101-
7352; the Reclamation Act of 1902, ch. 1093, 32 Stat. 388, as amended 
and supplemented by subsequent enactments, particularly section 9(c) of 
the Reclamation Project Act of 1939, 43 U.S.C. 485h(c); and other acts 
specifically applicable to the project involved.

Availability of Information

    Interested parties may review and copy all brochures, studies, 
comments, letters, memorandums, or other documents made or kept by 
Western for developing the proposed base charge and rates. These 
documents are at the Desert Southwest Customer Service Regional Office, 
located at 615 South 43rd Avenue, Phoenix, Arizona.

Regulatory Procedural Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to perform a regulatory flexibility analysis 
if a final rule is likely to have a significant economic impact on a 
substantial number of small entities, and there is a legal requirement 
to issue a general notice of proposed rulemaking. This action does not 
require a regulatory flexibility analysis since it is a rulemaking that 
applies to rates or services for public property.

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969 
(NEPA) (42 U.S.C. 4321, et seq.); Council On Environmental Quality 
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR 
part 1021), Western has determined that this action is categorically 
excluded from preparing an environmental assessment or an environmental 
impact statement.

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; therefore, this notice requires no clearance by 
the Office of Management and Budget.

Small Business Regulatory Enforcement Fairness Act

    Western has determined that this rule is exempt from congressional 
notification requirements under 5 U.S.C. 801 because the action is a 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

    Dated: February 8, 2002.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 02-4617 Filed 2-26-02; 8:45 am]
BILLING CODE 6450-01-P