[Federal Register Volume 69, Number 139 (Wednesday, July 21, 2004)]
[Notices]
[Pages 43580-43581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16584]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of public review and comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has prepared Current and Revised 2004 Power Repayment 
Studies that show the need for an increase in annual revenues to meet 
cost recovery criteria. Such increased revenues are required primarily 
due to increased future estimates of operations and maintenance 
expenses at the project. The Administrator has developed a proposed Sam 
Rayburn Dam rate schedule, which is supported by a power repayment 
study, to recover the required revenues. Beginning January 1, 2005, the 
proposed rate would increase annual revenues 24.9 percent from 
$2,013,024 to $2,513,700.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register notice and will end October 19, 
2004.
    1. Public Information Forum--July 27, 2004, 1 p.m. central time, 
Tulsa, OK.
    2. Public Comment Forum--August 26, 2004, 9 a.m. central time, 
Tulsa, OK.

[[Page 43581]]


ADDRESSES: If requested, the forums will be held in Southwestern's 
offices, Room 1500, Williams Center Tower I, One West Third Street, 
Tulsa, Oklahoma 74103.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma 74103, (918) 595-6696, [email protected].

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, in the Department of Energy Organization 
Act, Public Law 95-91, dated August 4, 1977. Southwestern's power 
marketing activities were transferred from the Department of Interior 
to the Department of Energy, effective October 1, 1977. Guidelines for 
preparation of power repayment studies are included in DOE Order No. RA 
6120.2, Power Marketing Administration Financial Reporting. Procedures 
for Public Participation in Power and Transmission Rate Adjustments of 
the Power Marketing Administrations are found at title 10, part 903, 
subpart A of the Code of Federal Regulations (10 CFR 903).
    Southwestern markets power from 24 multi-purpose reservoir 
projects, with hydroelectric power facilities constructed and operated 
by the U.S. Army Corps of Engineers. These projects are located in the 
states of Arkansas, Missouri, Oklahoma, and Texas. Southwestern's 
marketing area includes these States as well as Kansas and Louisiana. 
The costs associated with the hydropower facilities of 22 of the 24 
projects are repaid via revenues received under the Integrated System 
rates, as are Southwestern's transmission facilities that consist of 
1,380 miles of high-voltage transmission lines, 24 substations, and 46 
microwave and VHF radio sites. Costs associated with the Robert D. 
Willis and Sam Rayburn Dams, two projects that are isolated 
hydraulically, electrically, and financially from the Integrated System 
are repaid by separate rate schedules. The Sam Rayburn Dam project is 
addressed in this notice.
    Following Department of Energy guidelines, the Administrator, 
Southwestern, prepared a Current Power Repayment study using the 
existing Sam Rayburn Dam rate. The Study indicates that Southwestern's 
legal requirement to repay the investment in the power generating 
facility for power and energy marketed by Southwestern will not be met 
without an increase in revenues. The need for increased revenues is 
primarily due to increased future estimates of Operation and 
Maintenance (O&M) power-related expenses for the U.S. Army Corps of 
Engineers. The Revised Power Repayment Study shows that an increase in 
annual revenue of $500,676 (a 24.9 percent increase), beginning January 
1, 2005, is needed to satisfy repayment criteria.
    Opportunity is presented for Southwestern customers and other 
interested parties to receive copies of the Sam Rayburn Dam Power 
Repayment Studies and the proposed rate schedule. Persons desiring a 
copy of the Power Repayment Data Package with the proposed Rate 
Schedule, should submit a request to Mr. James W. Sherwood, Director, 
Rates and Repayment, Office of Corporate Operations, Southwestern Power 
Administration, One West Third Street, Tulsa, OK 74103, (918) 595-6673 
or via e-mail to [email protected].
    A Public Information Forum is scheduled on July 27, 2004, to 
explain to customers and the public the proposed rate and supporting 
studies. The proceeding will be transcribed, if held. A chairman, who 
will be responsible for orderly procedure, will conduct the Forum. 
Questions concerning the rate, studies, and information presented at 
the Forum will be answered, to the extent possible, at the Forum. 
Questions not answered at the Forum will be answered in writing. 
However, questions involving voluminous data contained in 
Southwestern's records may best be answered by consultation and review 
of pertinent records at Southwestern's offices.
    Persons interested in attending the Public Information Forum should 
so indicate in writing by letter or facsimile transmission (918-595-
6656) by July 23, 2004, their intent to appear at such Forum. Should no 
one indicate an intent to attend by the above-cited deadline, no such 
Forum will be held.
    A Public Comment Forum is scheduled for August 26, 2004, at which 
interested persons may submit written comments or make oral 
presentations of their views and comments related to the rate proposal. 
The proceeding will be transcribed, if held. A chairman, who will be 
responsible for orderly procedure, will conduct the Forum. 
Southwestern's representatives present and the chairman may ask 
questions of the speakers.
    Persons interested in attending the Public Comment Forum should so 
indicate in writing by letter or facsimile transmission (918-595-6656) 
by August 19, 2004, their intent to appear at such Forum. Should no one 
so indicate an intent to attend by the above-cited deadline, no such 
Forum will be held. Persons interested in speaking at the Forum should 
submit a request to the Administrator, Southwestern, in writing by 
August 19, 2004, their intent to appear at such Forum, so that a list 
of speakers can be developed. The chairman may allow others to speak if 
time permits.
    A transcript of each Forum will be made. Copies of the transcripts 
may be obtained directly from the transcribing service for a fee. 
Copies of all documents introduced will also be available from the 
transcribing service for a fee. A copy of the written comments, 
together with a diskette in MS Word, regarding the proposed rate change 
are due on or before October 19, 2004. Comments should be submitted to 
Forrest E. Reeves, Assistant Administrator, Southwestern Power 
Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma, 74103.
    Following review of the oral and written comments and the 
information gathered during the course of the proceedings, the 
Administrator will submit the amended Sam Rayburn Dam Proposal, and 
Power Repayment Studies in support of the proposed rate to the Deputy 
Secretary of Energy for confirmation and approval on an interim basis, 
and subsequently to the Federal Energy Regulatory Commission (FERC) for 
confirmation and approval on a final basis. The FERC will allow the 
public an opportunity to provide written comments on the proposed rate 
increase before making a final decision.

    Dated: July 8, 2004.
Michael A. Deihl,
Administrator.
[FR Doc. 04-16584 Filed 7-20-04; 8:45 am]
BILLING CODE 6450-01-P