[Federal Register Volume 67, Number 187 (Thursday, September 26, 2002)]
[Notices]
[Pages 60655-60656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24425]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project--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 Rate Order.

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SUMMARY: This action is to extend the existing Parker-Davis Project 
(Parker-Davis) rate methodology for determining the firm power service 
rate and the firm and nonfirm point-to-point transmission service 
rates, established under Rate Order No. WAPA-75, through September 30, 
2004. The existing Parker-Davis rate methodology will expire September 
30, 2002.

FOR FURTHER INFORMATION CONTACT: Mr. Todd Statler, Financial Analyst, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, PO 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 the Administrator of Western Area Power Administration 
(Western), (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 Parker-
Davis 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 ] 62,164, FERC issued an order 
confirming, approving, and placing in effect on a final basis the 
Parker-Davis 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 Parker-Davis rate methodology for 
firm power service and firm and nonfirm point-to-point transmission 
service will expire. Western has proposed that the existing Parker-
Davis rate methodology be extended pursuant to 10 CFR part 903.23.
    The Secretary of Energy is extending the existing Parker-Davis rate 
methodology that is used each Fiscal Year (FY) to calculate the firm 
power service rates for capacity and energy (Rate Schedule PD-F6), the 
firm point-to-point transmission service rate (Rate Schedule PD-FT6), 
the firm point-to-point transmission service rate for delivery of Salt 
Lake City Area Integrated Projects Power (Rate Schedule PD-FCT6) and 
the nonfirm point-to-point transmission service rate (Rate Schedule PD-
NFT6). The existing Parker-Davis rate methodology collects 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 Parker-Davis 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 Parker-Davis 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 Parker-Davis 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.
    In accordance with 10 CFR part 903.23(a)(2), Western did not have a 
consultation and comment period and did not hold public information and 
comment forums. The notice of proposed extension of the Parker-Davis 
rate methodology for firm power service and firm and nonfirm point-to-
point transmission service was published in the Federal Register (67 FR 
34702) on May 15, 2002.
    Following review of Western's proposal within the Department of 
Energy, I approve, in the absence of a Deputy Secretary, Rate Order No. 
WAPA-98, which extends the existing Parker-Davis rate methodology for 
determining the firm power service rate and the firm and nonfirm point-
to-point transmission service rates through September 30, 2004.

    Dated: September 13, 2002.
Spencer Abraham,
Secretary.

Order Confirming and Approving an Extension of the Parker-Davis Project 
Rate Methodology for Firm Power Service and Firm and Nonfirm 
Transmission Service

    This rate methodology was established pursuant to Section 302(a) of 
the Department of Energy Organization Act (42 U.S.C. 7152(a)),

[[Page 60656]]

through which the power marketing functions of the Secretary of the 
Department of the Interior and the Bureau of Reclamation under 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)), were transferred 
to and vested in the Secretary of Energy (Secretary).
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary delegated (1) the authority to develop long-term power and 
transmission rates on a nonexclusive basis to the Administrator of the 
Western Area Power Administration (Western), (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). This 
extension of rate methodology is issued pursuant to the Delegation 
Order and the Department of Energy (DOE) rate extension procedures at 
10 CFR part 903.

Background

    In the order issued March 10, 1998, in Docket No. EF98-5041-000, at 
82 FERC ] 62,164, FERC confirmed, approved, and placed in effect on a 
final basis Rate Order No. WAPA-75, the Parker-Davis 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, the Parker-Davis rate 
methodology for firm power service and firm and nonfirm point-to-point 
transmission service will expire. This makes it necessary to extend the 
existing Parker-Davis rate methodology pursuant to 10 CFR part 903. 
With this approval, Rate Order No. WAPA-75 will be extended under Rate 
Order No. WAPA-98.

Discussion

    Western proposes to extend the existing Parker-Davis rate 
methodology used each Fiscal Year (FY) to calculate the firm power 
service rates for capacity and energy (Rate Schedule PD-F6), the firm 
point-to-point transmission service rate (Rate Schedule PD-FT6), the 
firm point-to-point transmission service rate for delivery of Salt Lake 
City Area Integrated Projects Power (Rate Schedule PD-FCT6) and the 
nonfirm point-to-point transmission service rate (Rate Schedule PD-
NFT6). The existing Parker-Davis rate methodology provides for 
collecting 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 Parker-Davis 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 Parker-Davis 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.
    During this extension period of the existing Parker-Davis 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.
    In accordance with 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period and did not hold public information and 
comment forums. The notice of proposed extension of the Parker-Davis 
rate methodology for firm power service and firm and nonfirm point-to-
point transmission service was published in the Federal Register (67 FR 
34702) on May 15, 2002.
Order
    In view of the foregoing, I hereby extend for a period effective 
October 1, 2002, and ending September 30, 2004, the existing Parker-
Davis rate methodology for determining the firm power service rate and 
the firm and nonfirm point-to-point transmission service rates.

    Dated: September 13, 2002.
Spencer Abraham,
Secretary.
[FR Doc. 02-24425 Filed 9-25-02; 8:45 am]
BILLING CODE 6450-01-P