[Federal Register Volume 68, Number 57 (Tuesday, March 25, 2003)]
[Notices]
[Pages 14418-14419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7027]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Proposed Rate Adjustment, Public Forum, and Opportunities for 
Public Review and Comment for Cumberland System of Projects

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of proposed rates.

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[[Page 14419]]

SUMMARY: Southeastern Power Administration (Southeastern) proposes to 
replace Rate Schedules SJ-1-A, CBR-1-D, CSI-1-D, CK-1-D, CC-1-E, CM-1-
D, CEK-1-D, and CTV-1-D applicable to the sale of power from the 
Cumberland System of Projects and seeks approval of Rate Schedules SJ-
1-B, CBR-1-E, CSI-1-E, CK-1-E, CC-1-F, CM-1-E, CEK-1-E, and CTV-1-E. 
The new rate schedules are to be effective for a 5-year period, October 
1, 2003, through September 30, 2008. Additionally, opportunities will 
be available for interested persons to review the present rates, the 
proposed rates and supporting studies, to participate in a forum and to 
submit written comments. Southeastern will evaluate all comments 
received in this process.

DATES: Written comments are due on or before June 23, 2003. A public 
information and comment forum will be held in Nashville, Tennessee on 
May 1, 2003, at 10 a.m. Persons desiring to speak at a forum should 
notify Southeastern at least three days before the forum is scheduled, 
so that a list of forum participants can be prepared. Others may speak 
if time permits.

ADDRESSES: Written comments should be submitted to: Administrator, 
Southeastern Power Administration, Department of Energy, 1166 Athens 
Tech Road, Elberton, Georgia, 30635-6711. The public information and 
comment forum will be held at the Doubletree Hotel, 315 Fourth Avenue, 
North, Nashville, TN, (615) 244-8200.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance and 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 
(FERC) by order issued March 17, 2000, in Docket No. EF99-3021-000, 
confirmed and approved Wholesale Power Rate Schedules SJ-1-A, CBR-1-D, 
CSI-1-D, CK-1-D, CC-1-E, CM-1-D, CEK-1-D, and CTV-1-D applicable to 
Cumberland System power for a period ending June 30, 2004. On May 12, 
2000, FERC issued an order granting rehearing for further 
consideration. On June 15, 2000, FERC issued an order denying 
rehearing.
    Discussion: Existing rate schedules are predicated upon a May 1999 
repayment study and other supporting data contained in FERC Docket No. 
EF99-3021-000. The current repayment study, dated March 2003, shows 
that existing rates are not adequate to recover all costs required by 
present repayment criteria.
    A revised repayment study with a revenue increase of $8,063,000 
over the current repayment study demonstrates that rates would be 
adequate to meet repayment criteria. The additional revenue requirement 
amounts to a 20 per cent increase in revenues. Existing rates have been 
in effect since July 1, 1999. The Cumberland System region has incurred 
a severe drought since that time. This has impacted repayment in two 
ways. First, revenues have been reduced because Southeastern has had 
less energy available for sale. Second, expenses have increased because 
it has been necessary for Southeastern to purchase replacement energy 
to meet its minimum energy obligations.
    The Corps of Engineers has provided Southeastern with a plan of 
capital expenditures necessary to rehabilitate the projects in the 
Cumberland System. These costs are included in the proposed rates. It 
is proposed that the revised rate schedules contain the following unit 
rates:

                         Cumberland System Rates
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TVA Rate Schedule:                          ............................
  Capacity................................  $2.04 per kw/month.
  Additional Energy.......................  9.313 mills per kwh.
Outside Preference Customers Rate Schedule  ............................
 (Excluding Customers served through
 Carolina Power & Light Company):
  Capacity................................  $3.506 per kw/month.
  Additional Energy.......................   9.313 mills per kwh.
Customers Served through Carolina Power &   ............................
 Light Company, Western Division
  Capacity................................  $3.991 per kw/month.
  Transmission............................  $1.2493 per kw/month.
Monongahela Power Company:                  ............................
  Energy..................................  The lower of 39.2 mills or
                                             Monongahela Power Company's
                                             avoided cost.
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    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, Georgia 30635-6711. Proposed Rate 
Schedules SJ-1-B, CBR-1-E, CSI-1-E, CK-1-E, CC-1-F, CM-1-E, CEK-1-E, 
and CTV-1-E are also available.

    Dated: March 6, 2003.
Charles A. Borchardt,
Administrator.
[FR Doc. 03-7027 Filed 3-24-03; 8:45 am]
BILLING CODE 6450-01-P