[Federal Register Volume 69, Number 32 (Wednesday, February 18, 2004)]
[Notices]
[Pages 7627-7628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3432]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed base charge and rates adjustment.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
an adjustment to the Boulder Canyon Project (BCP) firm power base 
charge and rates. The current base charge and rates expire September 
30, 2004. The current base charge is not sufficient to pay all annual 
costs including operation, maintenance, replacement, and interest 
expenses, and to repay investment obligations within the required 
period. The proposed base charge will provide sufficient revenue to pay 
all annual costs, including operation, maintenance, replacement, and 
interest expenses, and to repay investment obligations within the 
allowable period. A detailed rate package that identifies the reasons 
for the base charge and rates adjustment will be available in March 
2004. The proposed base charge and rates are scheduled to become 
effective on October 1, 2004, the beginning of Federal fiscal year (FY) 
2005, and will remain in effect through September 30, 2005. This 
Federal Register notice initiates the formal process for the proposed 
base charge and rates.

DATES: The consultation and comment period will begin today and will 
end May 18, 2004. Western representatives will explain the proposed 
base charge and rates at a public information forum on March 25, 2004, 
beginning at 10:30 a.m. m.s.t., in Phoenix, Arizona (AZ). Interested 
parties can provide oral and written comments at a public comment forum 
on April 15, 2004, beginning at 10:30 a.m. m.s.t., at the same 
location.

ADDRESSES: The meetings will be held at the Desert Southwest Customer 
Service Regional Office, located at 615 South 43rd Avenue, Phoenix, AZ. 
Please send comments to: Mr. J. Tyler Carlson, Regional Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005-6457, e-mail [email protected]. Western 
must receive comments by the end of the consultation and comment period 
to be assured consideration.

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, telephone (602) 
352-2442, e-mail [email protected].

SUPPLEMENTARY INFORMATION: 

Proposed Base Charge and Rates for BCP Firm Power

    The proposed base charge and rates for BCP firm power service are 
designed to recover an annual revenue requirement that includes the 
investment repayment, interest, operation and maintenance, 
replacements, payment to states, visitor services, and uprating 
payments. These annual costs are reduced by the projected revenue from 
water sales, visitor services, water pump energy sales, facility use 
charges, regulation and spinning reserve services, miscellaneous 
leases, and late fees. The projected annual revenue requirement is the 
base charge for firm power service and is divided equally between 
capacity dollars and energy dollars. Annual energy dollars are divided 
by annual energy sales, and annual capacity dollars are divided by 
annual capacity sales to determine the proposed energy rate and the 
proposed capacity rate.
    The Deputy Secretary of the Department of Energy (DOE) approved the 
existing rate formula for calculating the base charge and rates in Rate 
Schedule BCP-F6 for BCP firm power service on September 18, 2000 (Rate 
Order No. WAPA-94, October 13, 2000). The Federal Energy Regulatory 
Commission confirmed and approved the rate formula on a final basis in 
Docket No. EF00-5092-000 issued July 31, 2001. Rate Schedule BCP-F6 
became effective on October 1, 2000, for the period ending September 
30, 2005. Under Rate Schedule BCP-F6, for FY 2004, the base charge is 
$51,719,075, the forecasted energy rate is 6.46 mills per kilowatt-hour 
(mills/kWh) and the forecasted capacity rate is $1.17 per kilowatt 
month (kWmonth). The composite rate is 12.91 mills/kWh.
    The FY 2005 proposed base charge is $59,460,550, the forecasted 
energy rate is 6.95 mills/kWh, and the forecasted capacity rate is 
$1.27/kWmonth. The proposed composite rate is 13.90 mills/kWh. This is 
approximately an 8-percent increase from the current composite rate. 
The proposed base charge and rates are based on the FY 2004 operating 
plan for Western and the Bureau of Reclamation, and also account for 
the lower revenue level due to restriction of public tours at Hoover 
Dam following the September 11, 2001, terrorist attack in the United 
States. The following table compares the current and proposed base 
charge and rates.

                            Comparison of Current and Proposed Base Charge and Rates
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                                                                   Current Oct. 1,   Proposed Oct.     Percent
                                                                     2003 through   1, 2004 through     change
                                                                    Sept. 30, 2004   Sept. 30, 2005    increase
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Total Composite (mills/kWh)......................................            12.91            13.90            8
Base Charge ($)..................................................       51,719,075       59,460,550           15
Energy Rate (mills/kWh)..........................................             6.46             6.95            8
Capacity Rate ($/kWmonth)........................................             1.17             1.27            8
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[[Page 7628]]

    The increase in the base charge and rates results from higher 
annual costs in operation and maintenance, replacements, visitor's 
center costs and lower revenue projections for the visitor center.

Procedural Requirements

    Western will hold both a public information forum and a public 
comment forum. After considering comments, Western will recommend the 
proposed base charge and rates for final approval by the DOE Deputy 
Secretary.
    The proposed firm power service base charge and rates for BCP are 
being set under the DOE Organization Act, 42 U.S.C. 7152; 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 involved.

Availability of Information

    Interested parties may review and copy all brochures, studies, 
comments, letters, memorandums, or other documents made or kept by 
Western for developing the proposed base charge and rates. These 
documents are at the Desert Southwest Customer Service Regional Office, 
located at 615 South 43rd Avenue, Phoenix, AZ.

Regulatory Procedural 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 
specifically involving rates or services.

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; therefore, 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 a 
rulemaking specifically relating to rates or services and involves 
matters of procedure.

    Dated: February 2, 2004.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 04-3432 Filed 2-17-04; 8:45 am]
BILLING CODE 6450-01-P