[Federal Register Volume 69, Number 63 (Thursday, April 1, 2004)]
[Notices]
[Pages 17144-17145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7327]


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DEPARTMENT OF ENERGY

Western Area Power Administration

[Rate Order No. WAPA-112]


Desert Southwest Customer Service Region

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of order extending network integration transmission and 
ancillary service rates.

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SUMMARY: This action is to extend the existing Rate Schedules DSW-SD1, 
DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1, PD-NTS1, and INT-NTS1 
for the Desert Southwest Customer Service Region network integration 
transmission services for the Parker-Davis Project and the Pacific 
Northwest-Pacific Southwest Intertie Project and ancillary services for 
the Western Area Lower Colorado control area through March 31, 2005. 
The additional time is needed to accommodate changes in the firm 
transmission rate due to the upcoming Multi-System Transmission Rate 
(MSTR) Public Process.

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, 
e-mail [email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00 approved 
December 6, 2001, the Secretary delegated: (1) The authority to develop 
power and transmission rates on a nonexclusive basis to the 
Administrator of the Western Area Power Administration (Western); (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. 
The existing rates contained within Rate Order No. WAPA-84 were 
approved for a 5-year period, beginning April 1, 1999, and ending March 
31, 2004.
    Western is currently evaluating methodologies and preparing to 
enter into a public process proposing an MSTR for cost recovery 
purposes for the Parker-Davis Project, the Pacific Northwest-Pacific 
Southwest Intertie Project and the Central Arizona Project. The 
methodologies to charge for the network integration transmission 
service are currently written to apply to each Project. Through the 
public process, these service methodologies will be changed to 
accommodate some variation of the proposed MSTR. Western believes that 
the additional time afforded by extending the date for the expiration 
of the network integration transmission and ancillary services will 
allow Western to develop new rates to facilitate cost recovery in the 
future. In order to conduct the planned MSTR public process, the 
current Rate Schedules must be extended pursuant to 10 CFR 903. The 
rate schedules covered by Rate Order No. WAPA-84 will be extended under 
Rate Order No. WAPA-112.
    Western's existing formulary rate schedules for network integration 
transmission and ancillary services, which are recalculated annually, 
would sufficiently recover project expenses (including interest) and 
capital requirements through March 31, 2005.
    Following review of Western's proposal within the DOE, I approve 
Rate Order No. WAPA-112, which extends the existing Network Integration 
Transmission and Ancillary Service Rates through March 31, 2005.


[[Page 17145]]


    Dated: March 22, 2004.
Kyle E. McSlarrow,
Deputy Secretary.

Order Confirming and Approving an Extension of the Desert Southwest 
Customer Service Region Network Integration Transmission and Ancillary 
Service Rates

    These service rate methodologies were established following section 
302 of the Department of Energy (DOE) Organization Act (42 U.S.C. 
7152). 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 approved December 6, 2001, the 
Secretary delegated: (1) The authority to develop power and 
transmission rates on a non-exclusive basis to the Administrator of the 
Western Area Power Administration (Western); (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. This rate extension 
is issued following the Delegation Order and the DOE rate extension 
procedures at 10 CFR 903.23(b).

Background

    The existing rates contained within Rate Order No. WAPA-84 were 
approved for 5 years, beginning April 1, 1999, and ending March 31, 
2004.

Discussion

    Western is currently evaluating methodologies and preparing to 
enter into a public process proposing a Multi-System Transmission Rate 
(MSTR) for cost recovery purposes for the Parker-Davis Project, the 
Pacific Northwest-Pacific Southwest Intertie Project, and the Central 
Arizona Project. The methodology to charge for the network integration 
transmission service is currently written to apply to each Project. 
Through the public process, the service methodology may be changed to 
accommodate the proposed MSTR. Western believes that the additional 
time afforded by extending the date for the expiration of the network 
integration transmission and ancillary services will allow Western to 
develop these rates to facilitate cost recovery.
    Therefore, time requirements make it necessary to extend the 
current rates pursuant to 10 CFR 903. Upon its approval, Rate Order No. 
WAPA-84 will be extended under Rate Order No. WAPA-112.

Order

    In view of the above and under the authority delegated to me by the 
Secretary, I hereby extend the existing Ancillary Service Rate 
Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1, and 
the existing network integration transmission rate schedules PD-NTS1, 
and INT-NTS1. These existing Rate Schedules shall remain in effect 
through March 31, 2005.

    Dated: March 22, 2004.
Kyle E. McSlarrow,
Deputy Secretary.
[FR Doc. 04-7327 Filed 3-31-04; 8:45 am]
BILLING CODE 6450-01-P