[Federal Register Volume 68, Number 216 (Friday, November 7, 2003)]
[Notices]
[Pages 63083-63084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28095]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pacific Northwest-Pacific Southwest Intertie Project--Firm and 
Nonfirm Transmission Service Rates--Rate Order No. WAPA-108

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: This action is taken to extend the existing Pacific Northwest-
Pacific Southwest Intertie Project (AC Intertie) firm point-to-point 
transmission service rate for the 230/345-kilovolt (kV) transmission 
system, Rate Order No. WAPA-76, and firm point-to-point transmission 
service rate for the 500-kV transmission system, and the nonfirm point-
to-point transmission service rate for the 230/345/500-kV, Rate Order 
No. WAPA-91, through December 31, 2006. AC Intertie Project rates will 
expire December 31, 2003.

FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Team Lead, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 352-2442, 
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 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).
    Western's firm point-to-point transmission service rate for the AC 
Intertie 230/345-kV transmission system was revised through Rate Order 
No. WAPA-76 and submitted to FERC for confirmation and approval on 
February 8, 1999. On June 22, 1999, in Docket No. EF99-5191-000, 87 
FERC ] 61,346, FERC issued an order confirming, approving, and placing 
into effect on a final basis the firm point-to-point transmission 
service rate of $12.00/kilowattyear for the AC Intertie 230/345-kV 
transmission system. The rate was approved for 5 years from January 1, 
1999, to December 31, 2003.
    During the firm point-to-point transmission service rate 
development for the AC Intertie 230/345-kV transmission system (Rate 
Order No. WAPA-76), Western determined that it would take about 10 
years for the AC Intertie 500-kV transmission system to be subscribed 
to a level sufficient to meet its own revenue repayment requirements. 
The ratesetting Power Repayment Study (PRS) established for the AC 
Intertie 230/345/500-kV transmission system (Rate Order No. WAPA-76) 
reflected the phasing-in of AC Intertie 500-kV transmission system 
revenues starting in fiscal year (FY) 1999 through FY 2008. The 
projected firm transmission sales in the 500-kV transmission system PRS 
assume that in 10 years the 500-kV Project will be economically viable 
and capable of demonstrating repayment. The PRS was programmed for 
first year sales of 62.5 megawatt (MW) and annual increases of 100 MW 
through the tenth year. Based on that projection, the total sales 
target projected at the end of fiscal year 2003 was 562.5 MW. The 500-
kV system contractual commitments are currently 664 MW. The 230/345-kV 
system contractual commitments are 1,059 MW. The total combined firm 
transmission sales beginning in FY 2004 is projected to be 1,723 MW. 
This ratesetting PRS methodology remains valid. Projected revenue 
levels from sales of firm and nonfirm point-to-point transmission 
service and miscellaneous items will recover project expenses and 
capital requirements through FY 2049 for the AC Intertie 230/345/500-kV 
transmission system.
    On August 15, 2000, the Deputy Secretary approved Rate Order WAPA-
91. This extended the existing firm point-to-point transmission service 
rate of $17.23/kilowattyear for the AC Intertie 500-kV transmission 
system, and the existing nonfirm point-to-point transmission service 
rate of 2.00 mills/kWh for the AC Intertie 230/345/500-kV transmission 
system through December 31, 2003.
    Western has decided to extend the existing firm point-to-point 
transmission service rate of $17.23/kilowattyear for the AC Intertie 
500-kV transmission system, firm point-to-point transmission service 
rate of $12.00/kilowattyear for the AC Intertie 230/345-kV transmission 
system, and the nonfirm point-to-point transmission service rate of 
2.00 mills/kilowatthour for the AC Intertie 230/345/500-kV transmission 
system through December 31, 2006. This extension will also allow 
Western time to evaluate impacts of combining revenue requirements of 
the Desert Southwest Region's transmission systems and to determine a 
methodology to put in place a multi-system transmission rate. Western 
proposes to extend the current rates pursuant to 10 CFR 903.23. Upon 
its approval, Rate Order No. WAPA-76 and Rate Order No. WAPA-91 will be 
extended under Rate Order No. WAPA-108. Under 10 CFR 903.23(a)(2), 
Western did not have a consultation and comment period. Western held an 
informal public information forum.
    Following review of Western's proposal within the Department of 
Energy, I approved Rate Order No. WAPA-108, which extends the existing 
firm point-to-point transmission service rate of $17.23/kilowattyear 
for the AC Intertie 500-kV transmission system, the firm point-to-point 
transmission service rate of $12.00/kilowattyear for the AC Intertie 
230/345-kV transmission system, and the nonfirm point-to-point 
transmission service rate of 2.00 mills/kilowatthour for the AC 
Intertie 230/345/500-kV transmission system on an interim basis through 
December 31, 2006. Rate Order No. WAPA-108 will be submitted to FERC 
for confirmation and approval on a final basis.

    Dated: October 27, 2003.
Kyle E. McSlarrow,
Deputy Secretary.

Order Confirming and Approving an Extension of the Pacific Northwest-
Pacific Southwest Intertie Project Firm and Nonfirm Transmission 
Service Rates

    The Pacific Northwest-Pacific Southwest Intertie Project (AC 
Intertie) transmission service rates were established following 
section 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. 00-037.00 effective December 6, 2001, 
the Secretary of Energy 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.

[[Page 63084]]

Background

    Western's firm point-to-point transmission service rate for the 
AC Intertie 230/345-kV transmission system was revised through Rate 
Order No. WAPA-76 and submitted to FERC for confirmation and 
approval on February 8, 1999. On June 22, 1999, in Docket No. EF99-
5191-000, 87 FERC ] 61,346, FERC issued an order confirming, 
approving, and placing into effect on a final basis the firm point-
to-point transmission service rate of $12.00/kilowattyear for the AC 
Intertie 230/345-kV transmission system. The rate was approved for 5 
years from January 1, 1999, to December 31, 2003.
    On August 15, 2000, the Deputy Secretary approved Rate Order 
WAPA-91. This extended the existing firm point-to-point transmission 
service rate of $17.23/kilowattyear for the AC Intertie 500-kV 
transmission system, and the existing nonfirm point-to-point 
transmission service rate of 2.00 mills/kWh for the AC Intertie 230/
345/500-kV transmission system through December 31, 2003.

Discussion

    During development of the firm point-to-point transmission 
service rate for the AC Intertie 230/345-kV transmission system 
(Rate Order No. WAPA-76), Western determined that it would take 
about 10 years for the AC Intertie 500-kV transmission system to be 
subscribed to a level sufficient to meet its own revenue repayment 
requirements. The ratesetting Power Repayment Study (PRS) 
established for the AC Intertie 230/345/500-kV transmission system 
(Rate Order No. WAPA-76) reflected the phasing-in of the AC Intertie 
500-kV transmission system revenues starting in fiscal year (FY) 
1999 through FY 2008. The projected firm transmission sales in the 
500-kV transmission system PRS assume that in 10 years the 500-kV 
Project will be economically viable and capable of demonstrating 
repayment. The PRS was programmed for first year sales of 62.5 MW 
and annual increases of 100 MW through the tenth year. Based on that 
projection, the total sales target projected at the end of fiscal 
year 2003 is 562.5 MW. The 500-kV system contractual commitments are 
currently 664 MW. The 230/345-kV system contractual commitments are 
1,059 MW. The total combined firm transmission sales beginning in FY 
2004 is projected to be 1,723 MW. This ratesetting PRS methodology 
remains valid. Projected revenue levels from sales of firm and 
nonfirm point-to-point transmission service and miscellaneous items 
will recover project expenses and capital requirements through FY 
2049 for the AC Intertie 230/345/500-kV transmission system.
    Western has decided to extend the existing firm point-to-point 
transmission service rate of $17.23/kilowattyear for the AC Intertie 
500-kV transmission system, the firm point-to-point transmission 
service rate of $12.00/kilowattyear for the AC Intertie 230/345-kV 
transmission system, and the nonfirm point-to-point transmission 
service rate of 2.00 mills/kilowatthour for the AC Intertie 230/345/
500-kV transmission system through December 31, 2006. This extension 
will also allow Western time to evaluate impacts of combining 
revenue requirements of the Desert Southwest Region's transmission 
systems and to determine a methodology to put in place a multi-
system transmission rate. Western proposes to extend the current 
rates pursuant to 10 CFR 903.23. Upon its approval, Rate Order No. 
WAPA-76 and Rate Order No. WAPA-91 will be extended under Rate Order 
No. WAPA-108. Under 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period.

Order

    In view of the above and under the authority delegated to me by 
the Secretary, I hereby extend from December 31, 2003, to December 
31, 2006, the existing firm point-to-point transmission service rate 
of $17.23/kilowattyear for the AC Intertie 500-kV transmission 
system, the firm point-to-point transmission service rate of $12.00/
kilowattyear for the AC Intertie 230/345-kV transmission system, and 
the nonfirm point-to-point transmission service rate of 2.00 mills/
kilowatthour for the AC Intertie 230/345/500-kV transmission system 
on an interim basis. The existing AC Intertie transmission system 
rates for transmission service shall remain in effect pending FERC 
confirmation and approval of their extension or substitute rates on 
a final basis through December 31, 2006.

    Dated: October 27, 2003.
Kyle E. McSlarrow,
Deputy Secretary.

[FR Doc. 03-28095 Filed 11-6-03; 8:45 am]
BILLING CODE 6450-01-P