[Federal Register Volume 68, Number 66 (Monday, April 7, 2003)]
[Notices]
[Pages 16793-16794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8377]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--Extension of Transmission and Ancillary 
Service Rates--Rate Order No. WAPA-101

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: This action is being taken to extend the existing Loveland 
Area Projects (LAP) Transmission and Ancillary Service rates, Rate 
Order No. WAPA-80, and Energy Imbalance Service rate, Rate Order No. 
WAPA-97, through March 31, 2004. The existing LAP Transmission and 
Ancillary Service rates and the Energy Imbalance Service rate will 
expire March 31, 2003.

FOR FURTHER INFORMATION CONTACT: Mr. Daniel T. Payton, Rates Manager, 
Rocky Mountain Customer Service Region, Western Area Power 
Administration, P.O. Box 3700, Loveland, CO 80539-3003, (970) 461-7442, 
or e-mail [email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-0037.00 approved 
December 6, 2001, the Secretary delegated: (1) The authority to develop 
long-term power and transmission rates on a non-exclusive 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).
    The Deputy Secretary approved the existing Rate Schedules L-NT1, L-
FPT1, L-NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, and L-AS6 on March 
23, 1998 (Rate Order No. WAPA-80, 63 FR 16778, April 6, 1998). FERC 
confirmed and approved the formula rate schedules for Rate Order No. 
WAPA-80 on July 21, 1998, under FERC Docket No. EF98-5181-000 (at 84 
FERC ] 61,066). The existing formula rates became effective on April 1, 
1998, and are approved through March 31, 2003.
    Subsequently, Rate Schedule L-AS4, Energy Imbalance Service, was 
revised and approved by the Secretary on May 30, 2002 (Rate Order No. 
WAPA-97, 67 FR 39970, June 11, 2002). Rate Order No. WAPA-97 became 
effective July 1, 2002, and is approved through March 31, 2003. FERC 
confirmed and approved the formula rate schedule for Energy Imbalance 
Service on February 3, 2003 (Docket No. EF02-5181-000).
    Western's existing formula rate schedules, which are recalculated 
annually, will sufficiently recover project expenses (including 
interest) and capital requirements through the extension period. 
Western is seeking this extension to provide more time for the 
evaluation of new rates for ancillary services, particularly energy 
imbalance and regulation, and to provide a concurrent public process 
and rate approval period for new rates for firm electric service, 
transmission service, and ancillary services. For these reasons, 
Western is extending the existing rates for transmission and ancillary 
services through March 31, 2004, under 10 CFR part 903.23(b).
    I approved Rate Order No. WAPA-101 after DOE reviewed Western's 
proposal. My approval extends the existing LAP transmission and 
ancillary services rate schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, 
L-AS3, L-AS4, L-AS5, and L-AS6 through March 31, 2004.

    Dated: March 20, 2003.
Kyle E. McSlarrow,
Deputy Secretary.

Order Confirming and Approving an Extension of the Loveland Area 
Projects Transmission and Ancillary Service Rates

    The Loveland Area Projects (LAP) Transmission and Ancillary Service 
rates were established following section

[[Page 16794]]

302(a) of the Department of Energy (DOE) Organization Act, 42 U.S.C. 
7152(a). This act transferred to and vested in the Secretary of Energy 
(Secretary) 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), and other acts that 
specifically apply to the project system involved.
    By Delegation Order No. 00-0037.00 approved December 6, 2001, the 
Secretary delegated: (1) The authority to develop long-term power and 
transmission rates on a non-exclusive 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). This rate extension is issued following the Delegation Order 
and the DOE rate extension procedures at 10 CFR part 903.23(b).

Background

    The Deputy Secretary approved the existing Rate Schedules L-NT1, L-
FPT1, L-NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, and L-AS6 on March 
23, 1998 (Rate Order No. WAPA-80, 63 FR 16778, April 6, 1998). FERC 
confirmed and approved the formula rate schedules for Rate Order No. 
WAPA-80 on July 21, 1998, under FERC Docket No. EF98-5181-000 (at 84 
FERC ] 61,066). The existing formula rates became effective on April 1, 
1998, and are approved through March 31, 2003.
    Subsequently, Rate Schedule L-AS4, Energy Imbalance Service, was 
revised and approved by the Secretary on May 30, 2002 (Rate Order No. 
WAPA-97, 67 FR 39970, June 11, 2002). Rate Order No. WAPA-97 became 
effective July 1, 2002, and is approved through March 31, 2003. FERC 
confirmed and approved the formula rate schedule for Energy Imbalance 
Service on February 3, 2003 (Docket No. EF02-5181-000).

Discussion

    On March 31, 2003, Western's LAP Transmission and Ancillary Service 
rates and the Energy Imbalance Service rate expire. Western's existing 
formula rate schedules, which are recalculated annually, will 
sufficiently recover project expenses (including interest) and capital 
requirements through the extension period. Western is seeking this 
extension to provide more time for the evaluation of new rates for 
ancillary services, particularly energy imbalance and regulation, and 
to provide a concurrent public process and rate approval period for new 
rates for firm electric service, transmission service, and ancillary 
services.
    The process will take several months to complete because of the 
complex issues Western and its interested public must address. It will 
also offer opportunities for public information and comment forums.
    For these reasons, Western seeks to extend existing Rate Schedules 
L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, and L-AS6 
under 10 CFR 903.23(b) through March 31, 2004.

Order

    In view of the above and under the authority delegated to me by the 
Secretary, I hereby extend the existing Rate Schedules L-NT1, L-FPT1, 
L-NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, and L-AS6 for LAP 
Transmission and Ancillary services from April 1, 2003, through March 
31, 2004.

    Dated: March 20, 2003.
Kyle E. McSlarrow,
Deputy Secretary.
[FR Doc. 03-8377 Filed 4-4-03; 8:45 am]
BILLING CODE 6450-01-P