[Federal Register Volume 68, Number 114 (Friday, June 13, 2003)]
[Notices]
[Pages 35401-35402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14948]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Proposed Rates for Loveland Area Projects Firm Electric Service

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
revised rates for Loveland Area Projects (LAP) firm electric service. 
Current rates, under Rate Schedule L-F4, have been extended through 
March 31, 2004. The proposed rates will provide sufficient revenue to 
pay all annual costs, including interest expense and repayment of 
required investment within the allowable period. The rate impacts will 
be detailed in a brochure to be made available to all interested 
parties. The proposed rates, under Rate Schedule L-F5, are scheduled to 
go into effect on January 1, 2004, and will remain in effect through 
December 31, 2008. Publication of this Federal Register notice begins 
the formal process for the proposed rates.

DATES: The consultation and comment period begins today and will end 
September 11, 2003.
    Western will present a detailed explanation of the proposed rates 
at the following public information forums:
    1. July 14, 2003, 1 p.m. MDT in Denver, Colorado.
    2. July 15, 2003, 9 a.m. CDT in Lincoln, Nebraska.
    Western will receive oral and written comments at the following 
public comment forum:
    1. August 6, 2003, 1 p.m. MDT in Denver, Colorado.

ADDRESSES: The public information forums will be held at the following 
locations:
    1. Denver, Radisson Stapleton Plaza Hotel, 3333 Quebec Street, 
Denver, Colorado.
    2. Lincoln, Southeast Community College, 11th and O Street, 
Lincoln, Nebraska.
    The public comment forum will be held at the following location:
    1. Denver, Radisson Stapleton Plaza Hotel, 3333 Quebec, Denver, 
Colorado.
    Written comments should be sent to: Joel K. Bladow, Regional 
Manager, Rocky Mountain Region, Western Area Power Administration, 5555 
East Crossroads Boulevard, Loveland, CO 80538-8986, or email: 
[email protected]. Official comments received via letter and e-mail 
will be posted to our Web site located under the ``2004 Rate 
Adjustments'' section at http://www.wapa.gov/rm/rm.htm after the close 
of the 90-day consultation and comment period. Western must receive 
written comments by the end of the consultation and comment period to 
be assured consideration.

FOR FURTHER INFORMATION CONTACT: Mr. Daniel T. Payton, Rates Manager, 
Rocky Mountain Region, Western Area Power Administration, 5555 East 
Crossroads Boulevard, Loveland, CO 80538-8986, telephone (970) 461-
7442, email: [email protected].

SUPPLEMENTARY INFORMATION: The proposed rates for LAP firm electric 
service are designed to recover an annual revenue requirement that 
includes investment repayment, interest, purchase power, operation and 
maintenance, and other annual expenses. The projected annual revenue 
requirement for firm electric service is allocated equally between 
capacity and energy.
    The Department of Energy (DOE) Deputy Secretary approved Rate 
Schedule L-F4 for LAP firm electric service on an interim basis on 
January 6, 1994 (Rate Order No. WAPA-61, 59 FR 3339, January 21, 1994), 
and the Federal Energy Regulatory Commission (FERC) confirmed and 
approved the rate schedule on a final basis on July 14, 1994, under 
FERC Docket No. EF94-5181-000 (68 FERC 62,040). Rate Schedule L-F4 was 
approved for a 5-year period beginning on February 1, 1994, ending on 
January 31, 1999. Rate Order No. WAPA-82 extended the existing rate for 
2 years, beginning February 1, 1999, through January 31, 2001. Rate 
Order No. WAPA-89 extended the rate again beginning February 1, 2001, 
through September 30, 2003. FERC confirmed and approved the rate 
schedule on August 4, 2000, under FERC Docket No. EF00-5181-000 (92 
FERC 62,093). Rate Order No. WAPA-103 extended the rate a third time 
beginning October 1, 2003, through March 31, 2004.
    Under Rate Schedule L-F4, the composite rate effective on October 
1, 1994, is 21.70 mills per kilowatthour (mills/kWh); the energy rate 
is 10.85 mills/kWh and the capacity rate is $2.85 per kilowattmonth 
(kW-month). Under Rate Schedule L-F5, the proposed rates for LAP firm 
electric service will result in an overall composite rate increase of 
approximately 9.7 percent effective on January 1, 2004. The proposed 
rates for LAP firm electric service are listed in Table 1.

[[Page 35402]]



                     Table 1.--Proposed Firm Electric Service Revenue Requirement and Rates
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                                           Existing revenue requirement/    Proposed rev req./rates     Percent
          Firm electric service                        rates                     Jan. 1, 2004            change
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LAP Revenue Requirement..................  $44.3 million...............  $48.6 million...............        9.7
Total LAP Composite Rate.................  21.70 mills/kWh.............  23.81 mills/kWh.............        9.7
Firm Energy..............................  10.85 mills/kWh.............  11.91 mills/kWh.............        9.8
Firm Capacity............................  2.85/kW-month...............  3.14/kW-month...............       10.2
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    Although a one-step rate adjustment method is the option being 
proposed, Western is interested in receiving comments on a two-step 
rate adjustment option. Under a two-step method, the rates for LAP firm 
electric service will result in an overall composite rate increase of 
approximately 7.8 percent effective on January 1, 2004, and another 1.9 
percent effective on October 1, 2004, for a total increase of 
approximately 9.7 percent. The rates under this option for LAP firm 
electric service are listed in Table 2.

                 Table 2.--Two-Step Option--Firm Electric Service Revenue Requirement and Rates
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                                                      First step rates    Percent   Second step rates   Percent
     Firm electric service         Existing rates       Jan. 1, 2004       change      Oct. 1, 2004      change
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LAP Revenue Requirement........  $44.3 million.....  $47.7 million.....        7.7  $48.6 million....        1.9
Total LAP Composite Rate.......  21.70 mills/kWh...  23.39 mills/kWh...        7.8  23.84 mills/kWh..        1.9
Firm Energy....................  10.85 mills/kWh...  11.69 mills/kWh...        7.7  11.92 mills/kWh..        2.0
Firm Capacity..................  2.85/kW-month.....  3.08/kW-month.....        8.1  3.14/kW-month....        1.9
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    Since the proposed rates constitute a major adjustment as defined 
by the procedures for public participation in general rate adjustments, 
as cited below, Western will hold public information forums and a 
public comment forum. After review of public comments, and possible 
amendments or adjustments, Western will recommend the proposed rates 
for approval on an interim basis by the DOE Deputy Secretary.
    These firm electric service rates for LAP are being established 
pursuant to the Department of Energy Organization Act, 42 U.S.C. 7101-
7352; 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 
specifically applicable to the projects involved.
    By Delegation Order No. 00-037.00, approved December 6, 2001, the 
Secretary of Energy delegated (1) the authority to develop power and 
transmission rates on a nonexclusive 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 FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) became 
effective on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents made or kept by Western in developing the proposed rates are 
available for inspection and copying at the Rocky Mountain Regional 
Office, located at 5555 East Crossroads Boulevard, Loveland, Colorado. 
Many of these documents, as well as supporting information, are also 
available on our Web site under the ``2004 Rate Adjustments'' section 
located at http://www.wapa.gov/rm/rm.htm.

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to perform a regulatory flexibility analysis 
if a final rule is likely to have a significant economic impact on a 
substantial number of small entities and there is a legal requirement 
to issue a general notice of proposed rulemaking. This action does not 
require a regulatory flexibility analysis since it is a rulemaking 
involving rates or services applicable to public property.

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969 
(NEPA) (42 U.S.C. 4321, et seq.); Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR 
part 1021), Western has determined that this action is categorically 
excluded from preparing an environmental assessment or an environmental 
impact statement.

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; so this notice requires no clearance by the 
Office of Management and Budget.

Small Business Regulatory Enforcement Fairness Act

    Western has determined that this rule is exempt from congressional 
notification requirements under 5 U.S.C. 801 because the action is 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

    Dated: May 30, 2003.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 03-14948 Filed 6-12-03; 8:45 am]
BILLING CODE 6450-01-P