[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Notices]
[Pages 61617-61619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24864]


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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 Order.

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[[Page 61618]]

SUMMARY: The Secretary of Energy acting under sections 301(b), 302(a), 
402(e), 641, 642, 643, and 644, of the Department of Energy 
Organization Act (P. L. 95-91) has approved and placed into effect on 
an interim basis Rate Order No. SWPA-49 which decreases the power rate 
for the Sam Rayburn Dam Project (Rayburn) pursuant to the following Sam 
Rayburn Dam Rate Schedule:

    Rate Schedule SRD-02, Wholesale Rates for Hydro Power and Energy 
Sold 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, (918) 595-6696, [email protected].

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for 
the Rayburn project is $2,077,632 per year. The rate was approved on a 
final basis by the Federal Energy Regulatory Commission on October 22, 
2001, for the period October 1, 2001, through September 30, 2005. The 
FY 2002 Rayburn Power Repayment Studies indicate the need for a 
decrease in the annual rate of $64,608, or 3.1 percent beginning 
October 1, 2002.
    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 21, 2002, Southwestern 
published notice in the Federal Register, 67 FR 35805, 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 19, 2002. Only one comment was received 
from Gillis & Angley, Counselors 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-49, which decreases the 
existing Rayburn rate to $2,013,024 per year for the period October 1, 
2002, through September 30, 2006.

    Dated: September 18, 2002.
Spencer Abraham,
Secretary.

[Rate Order No. SWPA-49]

In the matter of:

Order Confirming, Approving and Placing Decreased Power Rate Schedule 
in Effect on an Interim Basis

    Pursuant to sections 301(b), 302(a), 402(e), 641, 642, 643, and 
644, 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) was 
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 November 24, 
1999, the Secretary of Energy again provided interim rate approval 
authority to the Deputy Secretary of Energy. Pursuant to Delegation 
Order No. 00-037.00, effective December 6, 2001, authority is delegated 
to the Deputy Secretary of Energy for interim rate approval and to the 
Federal Energy Regulatory Commission for final rate approval. 
Delegation Order No. 0204-108 is no longer applicable to rates filed by 
the Power Marketing Administrations. While presently there is no Deputy 
Secretary; the Secretary of Energy possesses the necessary authority to 
approve rates.

Background

    The Sam Rayburn Dam 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. EF01-
4021-000, issued October 22, 2001, for the period October 1, 2001, 
through September 30, 2005, the FERC confirmed and approved the current 
annual Sam Rayburn Dam rate of $2,077,632.

Discussion

    Southwestern's FY 2002 Current Power Repayment Study (PRS) 
indicates that the existing annual power rate of $2,077,632 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) and Southwestern operations and maintenance 
expenses. The Revised PRS indicates that a decrease in annual revenues 
of $64,608 beginning in FY 2003 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,

[[Page 61619]]

``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 21, 2002, 67 
FR 35805. A Public Information Forum was scheduled to be held June 6, 
2002, and a Public Comment Forum was scheduled to be held July 10, 
2002, both in Tulsa, Oklahoma. Both forums were canceled as no one 
expressed an intent to participate. Written comments were due by August 
19, 2002. 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 the 
customer representative to discuss the 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 2002, Southwestern 
finalized the Power Repayment Study and rate schedule for the proposed 
annual rate of $2,013,024 which is the lowest possible rate needed to 
satisfy repayment criteria. This rate represents an annual decrease of 
3.1 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.

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 2002 Revised Rayburn PRS indicates that the annual power 
rate of $2,013,024 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. 00-037.00, 
December 6, 2001, 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 
part 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, I hereby confirm, approve and place in effect on an interim basis, 
for the period October 1, 2002, through September 30, 2006, the annual 
Sam Rayburn Dam Rate of $2,013,024 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: September 18, 2002.
Spencer Abraham,
Secretary.
[FR Doc. 02-24864 Filed 9-30-02; 8:45 am]
BILLING CODE 6450-01-P