[Federal Register Volume 69, Number 226 (Wednesday, November 24, 2004)]
[Notices]
[Pages 68339-68340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26038]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Power Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective 
December 6, 2001, and 00-001.00A, effective September 17, 2002, the 
Deputy Secretary has approved and placed into effect on an interim 
basis Rate Order No. SWPA-52, which increases the power rate for the 
Sam Rayburn Dam Project (Rayburn) pursuant to the following Sam Rayburn 
Dam Rate Schedule:

    Rate Schedule SRD-04, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Dam Electric Cooperative, Inc., (Contract No. 
DE-PM75-92SW00215)

The effective period for the rate schedule specified in Rate Order No. 
SWPA-52 is January 1, 2005, through September 30, 2008.

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

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for 
the Rayburn project is $2,013,024 per year. The rate was approved on a 
final basis by the Federal Energy Regulatory Commission on January 31, 
2003, for the period October 1, 2002, through September 30, 2006. The 
2004 Rayburn Power Repayment Studies indicate the need for an increase 
in the annual rate of $500,676, or 24.9 percent beginning January 1, 
2005.
    The Administrator, Southwestern Power Administration (Southwestern) 
has followed Title 10, Part 903 Subpart A, of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' (Part 903) in connection 
with the proposed rate schedule. On July 21, 2004, Southwestern 
published notice in the Federal Register, 69 FR 43580, of a 90-day 
comment period, together with a Public Information Forum and a Public 
Comment Forum, to provide an opportunity for customers and other 
interested members of the public to review and comment on a proposed 
rate increase for the Rayburn project. Both public forums were canceled 
when no one expressed an intention to participate. Written comments 
were accepted through October 19, 2004. One comment was received from 
Gillis & Angley, Counsellors at Law, on behalf of Sam Rayburn Municipal 
Power Agency and Vinton Public Power Authority, (organizations within 
Sam Rayburn Dam Electric Cooperative, Inc.) which stated that they had 
no objection to the proposed rate adjustment.
    Information regarding this rate proposal, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved Rate Order No. SWPA-52, on an interim basis, 
which increases the existing Rayburn rate to $2,513,700, per year, for 
the period January 1, 2005, through September 30, 2008.

    Dated: November 16, 2004.
Kyle E. McSlarrow,
Deputy Secretary.

[Rate Order No. SWPA-52]

Order Confirming, Approving and Placing Increased Power Rate Schedule 
in Effect on an Interim Basis

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Pub. L. 95-91, the functions of the Secretary of the 
Interior and the Federal Power Commission under Section 5 of the Flood 
Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern Power 
Administration (Southwestern) were transferred to and vested in the 
Secretary of Energy. By Delegation Order No. 0204-108, effective 
December 14, 1983, the Secretary of Energy delegated to the 
Administrator of Southwestern the authority to develop power and 
transmission rates, delegated to the Deputy Secretary of the Department 
of Energy the authority to confirm, approve, and place in effect such 
rates on an interim basis and delegated to the Federal Energy 
Regulatory Commission (FERC) the authority to confirm and approve on a 
final basis or to disapprove rates developed by the Administrator under 
the delegation. Delegation Order No. 0204-108, as amended, was 
rescinded and subsequently replaced by Delegation Orders 00-037.00 
(December 6, 2001) and 00-001-00A (September 17, 2002). The Deputy 
Secretary issued this rate order pursuant to said delegations.

Background

    The Sam Rayburn Dam Project (Rayburn) is located on the Angelina 
River in the State of Texas in the Neches River Basin. Since the 
beginning of its operation in 1965, it has been marketed as an isolated 
project, under contract with Sam Rayburn Dam Electric Cooperative, Inc. 
(Contract No. DE-PM75-92SW00215).
    In the FERC Docket No. EF03-4021-000, issued January 31, 2003, for 
the period October 1, 2002, through September 30, 2006, the FERC 
confirmed and approved the current annual Sam Rayburn Dam rate of 
$2,013,024.

[[Page 68340]]

Discussion

    Southwestern's 2004 Current Power Repayment Study (PRS) indicates 
that the existing annual power rate of $2,013,024 does not represent 
the lowest possible rate needed to meet cost recovery criteria. The 
increased revenue requirement is due to an increase in the U. S. Army 
Corps of Engineers (Corps) operations and maintenance expense 
estimates. The Revised PRS indicates that an increase in annual 
revenues of $500,676 beginning January 1, 2005, is sufficient to 
accomplish repayment of the Federal investment in the required number 
of years. Accordingly, Southwestern developed a proposed rate schedule 
based on that increased revenue requirement.
    Title 10, Part 903, Subpart A of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustment,'' has been followed in connection with the proposed rate 
adjustment. More specifically, opportunities for public review and 
comment during a 90-day period on the proposed Rayburn power rate were 
announced by notice published in the Federal Register, July 21, 2004, 
69 FR 43580. A Public Information Forum was scheduled to be held July 
27, 2004, and a Public Comment Forum was scheduled to be held August 
26, 2004, both in Tulsa, Oklahoma. Both forums were canceled as no one 
expressed an intent to participate. Written comments were due by 
October 19, 2004. Southwestern provided the Federal Register notice, 
together with supporting data, to the customer and interested parties 
for review and comment during the formal period of public 
participation. In addition, prior to the formal 90-day public 
participation process, Southwestern discussed with the customer 
representatives the preliminary information on the proposed rate 
adjustment. Only one formal comment was received from Gillis & Angley, 
Counsellors at Law, on behalf of Sam Rayburn Municipal Power Agency and 
Vinton Public Power Authority, (organizations within Sam Rayburn Dam 
Electric Cooperative, Inc.) which stated that they had no objection to 
the proposed rate adjustment.
    Upon conclusion of the comment period in October 2004, Southwestern 
finalized the PRS and rate schedule for the proposed annual rate of 
$2,513,700 which is the lowest possible rate needed to satisfy 
repayment criteria. This rate represents an annual increase of 24.9 
percent.

Availability of Information

    Information regarding this rate increase, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.

Comments and Responses

    Southwestern received one written comment in which customer 
representatives expressed no objection to the proposed rate adjustment.

Other Issues

    There were no other issues raised during the informal meeting or 
during the formal public participation period.

Administrator's Certification

    The 2004 Revised Rayburn PRS indicates that the annual power rate 
of $2,513,700 will repay all costs of the project, including 
amortization of the power investment consistent with provisions of the 
Department of Energy (DOE) Order No. RA 6120.2. In accordance with 
Delegation Order Nos. 00-037.00 (December 6, 2001) and 00-001.00A 
(September 17, 2002), and Section 5 of the Flood Control Act of 1944, 
the Administrator has determined that the proposed Rayburn power rate 
is consistent with applicable law and the lowest possible rate 
consistent with sound business principles.

Environment

    The environmental impact of the rate increase proposal was 
evaluated in consideration of DOE's guidelines for implementing the 
procedural provisions of the National Environmental Policy Act, 10 CFR 
1021, and was determined to fall within the class of actions that are 
categorically excluded from the requirements of preparing either an 
Environmental Impact Statement or an Environmental Assessment.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me, I hereby confirm, approve and place in effect on an interim basis, 
for the period January 1, 2005, through September 30, 2008, the annual 
Sam Rayburn Dam Rate of $2,513,700 for the sale of power and energy 
from Sam Rayburn Dam to the Sam Rayburn Dam Electric Cooperative, Inc., 
under Contract No. DE-PM75-92SW00215, dated October 7, 1992. This rate 
shall remain in effect on an interim basis through September 30, 2008, 
or until the FERC confirms and approves the rate on a final basis.

    Dated: November 16, 2004.


Kyle E. McSlarrow,
Deputy Secretary.


[FR Doc. 04-26038 Filed 11-23-04; 8:45 am]
BILLING CODE 6450-01-P