[Federal Register Volume 67, Number 153 (Thursday, August 8, 2002)]
[Notices]
[Pages 51578-51580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20063]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Jim Woodruff Project Power Rates, Rate Order No. 42

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: The Secretary of Department of Energy, confirmed and approved, 
on an interim basis, Rate Schedules JW-1-G and JW-2-D. The rates were 
approved on an interim basis through September 19, 2005, and are 
subject to confirmation and approval by the Federal Energy Regulatory 
Commission on a final basis.

DATES: Approval of rate on an interim basis is effective through 
September 19, 2005.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance & Marketing, Southeastern Power Administration, 
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-
6711, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by 
Order issued November 9, 2000, in Docket No. EF00-3031-000, confirmed 
and approved Wholesale Power Rate Schedules JW-1-F and JW-2-C. Rate 
schedules JW-1-G and JW-2-D replace these schedules.

    Dated: July 25, 2002.
Spencer Abraham,
Secretary.

Order Confirming and Approving Power Rates on an Interim Basis

    Pursuant to Sections 302(a) and 301(b) 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, relating 
to the Southeastern Power Administration (Southeastern) were 
transferred to and vested in the Secretary of Energy. By Delegation 
Order No. 0204-108, effective May 30, 1986, 51 FR 19744 (May 30, 
1986) the Secretary of Energy delegated to the Administrator the 
authority to develop power and transmission rates, and delegated to 
the Under Secretary the authority to confirm, approve, and place in 
effect such rates on an interim basis and delegated to the Federal 
Energy Regulatory Commission (FERC) the authority to confirm and 
approve on a final basis or to disapprove rates developed by the 
Administrator under the delegation. On December 6, 2001, the 
Secretary of Energy issued Delegation Order No. 00-001.00, granting 
the Deputy Secretary authority to confirm, approve, and place into 
effect Southeastern's rates on an interim basis. Because there is no 
Deputy Secretary at the present time, the Secretary of Energy has 
exercised his authority to confirm, approve, and place into effect 
on an interim basis the rate schedules in Southeastern Rate Order 
No. SEPA-42.

Background

    Power from the Jim Woodruff Project is presently sold under 
Wholesale Power Rate Schedules JW-1-F and JW-2-C. These rate 
schedules were approved by the FERC on November 9, 2000, for a 
period ending September 19, 2005 (93 FERC 62100).

Public Notice and Comment

    Southeastern prepared a Power Repayment Study, dated March of 
2002, that showed that revenues at current rates were not adequate 
to meet repayment criteria. A revised study with a revenue increase 
of $331,000 produced rates that are adequate to meet repayment 
criteria. On April 11, 2002, by Federal Register Notice 70 FR 17686, 
Southeastern proposed a rate adjustment of about 5.7 percent to 
recover this revenue. The notice also announced a Public Information 
and Comment Forum to be held May 16, 2000, in Tallahassee, Florida, 
with a deadline for written comments of July 10, 2002. Southeastern 
received no comments on the proposed rates.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in April 2002, for the Jim Woodruff Project, shows 
that with the proposed rates, all system power costs are paid within 
the 50-year repayment period required by existing law and DOE 
Procedure RA 6120.2. The Administrator of Southeastern has certified 
that the rates are consistent with applicable law and that they are 
the lowest possible rates to customers consistent with sound 
business principles.

Environmental Impact

    Southeastern has reviewed the possible environmental impacts of 
the rate adjustment under consideration and has concluded that, 
because the adjusted rates would not significantly affect the 
quality of the human environment within the meaning of the National 
Environmental Policy Act of 1969, the proposed action is not a major 
Federal action for which preparation of an Environmental Impact 
Statement is required.

Availability of Information

    Information regarding these rates, including studies, and other 
supporting materials is available for public review in the offices 
of Southeastern Power Administration, 1166 Athens Tech Road, 
Elberton, Georgia 30635-6711.

Submission to the Federal Energy Regulatory Commission

    The rates hereinafter confirmed and approved on an interim 
basis, together with supporting documents, will be submitted 
promptly to the Federal Energy Regulatory Commission for 
confirmation and approval on a final basis for a period beginning 
September 20, 2002, and ending no later than September 19, 2005.

[[Page 51579]]

Order

    In view of the foregoing and pursuant to the authority delegated 
to me by the Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective September 20, 2002, attached Wholesale 
Power Rate Schedules JW-1-G and JW-2-D. The rate schedules shall 
remain in effect on an interim basis through September 19, 2005, 
unless such period is extended or until the FERC confirms and 
approves them or substitute rate schedules on a final basis.

    Dated: July 25, 2002.
Spencer Abraham,
Secretary.

Proposed Wholesale Power Rate Schedule JW-1-G

Availability

    This rate schedule shall be available to public bodies and 
cooperatives served by the Florida Power Corporation and having 
points of delivery within 150 miles of the Jim Woodruff Project 
(hereinafter called the Project).

Applicability

    This rate schedule shall be applicable to firm power and 
accompanying energy made available by the Government from the 
Project and sold in wholesale quantities.

Character of Service

    The electric capacity and energy supplied hereunder will be 
three-phase alternating current at a nominal frequency of 60 cycles 
per second delivered at the delivery points of the customer.

Monthly Rate

    The monthly rate for capacity and energy made available or 
delivered under this rate schedule shall be:

Demand Charge

    $5.79 per kilowatt of monthly contract demand

Energy Charge

    16.25 mills per kilowatt hour

Billing Demand

    The monthly billing demand for any billing month shall be the 
lower of (a) the Customer's contract demand or (b) the sum of the 
maximum 30-minute integrated demands for the month at each of the 
Customer's points of delivery; provided, that, if an allocation of 
contract demand to delivery points has become effective, the 30-
minute maximum integrated demand for any point of delivery shall not 
be considered to be greater than the portion of the Customer's 
contract demand allocated to that point of delivery.

Contract Demand

    The contract demand is the amount of capacity in kilowatts 
stated in the contract which the Government is obligated to supply 
and the Customer is entitled to receive.

Energy Made Available

    During any billing month in which the Government supplies all 
the Customer's capacity requirements, the Government will make 
available such when both the Government and the Florida Power 
Corporation are supplying capacity to a delivery point, each 
kilowatt of capacity supplied to such point during such month will 
be considered to be accompanied by an equal quantity of energy.

Billing Month

    The billing month for power sold under this schedule shall end 
at 12 midnight on the 20th day of each calendar month.

Conditions of Service

    The customer shall, at its own expense, provide, install, and 
maintain on its side of each delivery point the equipment necessary 
to protect and control its own system. In so doing, the 
installation, adjustment, and setting of all such control and 
protective equipment at or near the point of delivery shall be 
coordinated with that which is installed by and at the expense of 
the Florida Power Corporation on its side of the delivery point.

Service Interruption

    When energy delivered to the Customer's system for the account 
of the Government is reduced or interrupted for one hour or longer, 
and such reduction or interruption is not due to conditions on the 
Customer's system or has not been planned and agreed to in advance, 
the demand charge for the month shall be appropriately reduced.

Proposed Wholesale Power Rate Schedule JW-2-D

Availability

    This rate schedule shall be available to the Florida Power 
Corporation (hereinafter called the Company).

Applicability

    This rate schedule shall be applicable to electric energy 
generated at the Jim Woodruff Project (hereinafter called the 
Project) and sold to the Company in wholesale quantities.

Points of Delivery

    Power sold to the Company by the Government will be delivered at 
the connection of the Company's transmission system with the Project 
bus.

Character of Service

    Electric power delivered to the Company will be three-phase 
alternating current at a nominal frequency of 60 cycles per second.

Monthly Rate

    The monthly rate for energy sold under this schedule shall be 
equal to 70 percent of the calculated saving in the cost of fuel per 
KWH to the Company determined as follows:
[GRAPHIC] [TIFF OMITTED] TN08AU02.022

Where:

Fm = Company fuel cost in the current period as defined in Federal 
Power Commission Order 517 issued November 13, 1974, Docket No. R-
479.
Sm = Company sales in the current period reflecting only losses 
associated with wholesale sales for resale. Sale shall be equated to 
the sum of (a) generation, (b) purchases, (c) interchange-in, less 
(d) inter-system sales, less estimated wholesale losses (based on 
average transmission loss percentage for preceding calendar year).

    Method of Application: The energy rate applied during the 
current billing month will be based on costs and equated sales for 
the second month preceding the billing month.

Determination of Energy Sold

    Energy will be furnished by the Company to supply any excess of 
Project use over Project generation. Energy so supplied by the 
Company will be deducted from the actual deliveries to the Company's 
system to determine the net deliveries for energy accounting and 
billing purposes. Energy for Project use shall consist of energy 
used for station service, lock operation, Project yard, village 
lighting, and similar uses.
    The on-peak hours shall be the hours between 7 a.m. and 11 p.m., 
Monday through Sunday, inclusive. Off-peak hours shall be all other 
hours.
    All energy made available to the Company shall, to the extent 
required, be classified as energy transmitted to the Government's 
preference customers served from the Company's system. All energy 
made available to the Company from the Project shall be separated on 
the basis of the metered deliveries to it at the Project during on-
peak and off-peak hours, respectively. Deliveries to preference 
customers of the Government shall be divided on the basis (with 
allowance for losses) of 77 percent being considered as on-peak 
energy and 23 percent being off-peak energy. Such percentages may by 
mutual consent be changed from time to time as further studies show 
to be appropriate. In the event that in classifying energy there is 
more than enough on-peak energy available to supply on-peak 
requirements of the Government's preference customers but less than 
enough off-peak energy available to supply such customers off-peak 
requirements, such excess on-peak energy may be applied to the 
extent necessary to meet off-peak requirements of such customers in 
lieu of purchasing deficiency energy to meet such off-peak 
requirements.

[[Page 51580]]

Billing Month

    The billing month under this schedule shall end at 12 midnight 
on the 20th day of each calendar month.

Power Factor

    The purchaser and seller under this rate schedule agree that 
they will both so operate their respective systems that neither 
party will impose an undue reactive burden on the other.

[FR Doc. 02-20063 Filed 8-7-02; 8:45 am]
BILLING CODE 6450-01-P