[Federal Register Volume 67, Number 94 (Wednesday, May 15, 2002)]
[Notices]
[Pages 34702-34703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12100]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project--Notice of Proposed Extension of the Rate 
Methodology for Firm Power Service and Firm and Nonfirm Transmission 
Service--Rate Order No. WAPA-98

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed extension.

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SUMMARY: This action is a proposal to extend the existing Parker-Davis 
Project (P-DP) rate methodology for determining the firm power service 
rate and the firm and nonfirm point-to-point transmission service 
rates, Rate Order No. WAPA-75, through September 30, 2004. The existing 
rate methodology will expire September 30, 2002. This notice of 
proposed extension of rate methodology is issued pursuant to 10 CFR 
part 903.23(a)(1). As permitted by 10 CFR part 903.23(a)(2), Western 
Area Power Administration (Western) will not have a consultation and 
comment period and will not hold public information and comment forums.

FOR FURTHER INFORMATION CONTACT: Mr. Todd Statler, Financial Analyst, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 352-2781, 
or e-mail [email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated (1) the authority 
to develop long-term power and transmission rates on a nonexclusive 
basis to Western's Administrator, (2) the authority to confirm, 
approve, and place such rates into effect on an interim basis to the 
Deputy Secretary and (3) the authority to confirm, approve, and place 
into effect on a final basis, to remand or to disapprove such rates to 
the Federal Energy Regulatory Commission (FERC).
    Pursuant to applicable Delegation Orders and existing Department of 
Energy (DOE) procedures for public participation in power and 
transmission rate adjustments in 10 CFR part 903, Western's P-DP rate 
methodology for firm power service and firm and nonfirm point-to-point 
transmission service was submitted to FERC for confirmation and 
approval on November 19, 1997. On March 10, 1998, in Docket No. EF98-
5041-000, at 82 FERC para. 62,164, FERC issued an order confirming, 
approving, and placing in effect on a final basis the P-DP rate 
methodology for firm power service and firm and nonfirm point-to-point 
transmission service. The rate methodology set forth in Rate Order No. 
WAPA-75 was approved for the period beginning November 1, 1997, and 
ending September 30, 2002.
    On September 30, 2002, Western's P-DP rate methodology for firm 
power service and firm and nonfirm point-to-point transmission service 
will expire. Western proposes to extend the current rate methodology 
pursuant to 10 CFR part 903. Upon its approval, Rate Order No. WAPA-75 
will be extended under Rate Order No. WAPA-98.
    Western proposes to extend the existing P-DP rate methodology used 
each Fiscal Year (FY) to calculate the firm power service rates for 
capacity and energy (Rate Schedule PD-F6), the

[[Page 34703]]

firm point-to-point transmission service rate (Rate Schedule PD-FT6), 
the firm point-to-point transmission service rate for Salt Lake City 
Area Integrated Projects Power (Rate Schedule PD-FCT6) and the nonfirm 
point-to-point transmission service rate (Rate Schedule PD-NFT6). This 
existing rate methodology ensures rates are set to collect annual 
revenues sufficient to recover annual expenses (including interest) and 
capital requirements, thus ensuring repayment of the project within the 
cost-recovery criteria set forth in DOE Order RA 6120.2. Under the 
existing rate methodology, the revenue requirements for generation and 
transmission are determined annually based on FY projections in the 
cost apportionment study. The cost apportionment study allocates all P-
DP expenses and other revenues between generation and transmission. The 
revenue requirement for generation determines the amount of funds to 
collect through firm power service rates for capacity and energy. 
Similarly, the revenue requirement for transmission determines the 
amount of funds to collect through firm point-to-point transmission 
service rates.
    During this extension period of the existing rate methodology, 
Western will initiate a rate adjustment process in accordance with 
procedures for public participation in power and transmission rate 
adjustments in 10 CFR part 903. Western anticipates this rate 
adjustment process to begin when audited financial data for FY 2001 and 
FY 2002 becomes available. In the meantime, Western will continue to 
conduct informal customer meetings to ensure involvement of interested 
parties in the rate process.
    All documents made or kept by Western for developing the proposed 
extension of the P-DP rate methodology for firm power service and firm 
and nonfirm point-to-point transmission service will be made available 
for inspection and copying at the Desert Southwest Customer Service 
Region, located at 615 South 43rd Avenue, Phoenix, Arizona.
    Within 90 days after publication of this notice, Rate Order No. 
WAPA-98 will be submitted to the Deputy Secretary for approval through 
September 30, 2004.

    Dated: April 30, 2002.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 02-12100 Filed 5-14-02; 8:45 am]
BILLING CODE 6450-01-P