[Federal Register Volume 69, Number 226 (Wednesday, November 24, 2004)]
[Notices]
[Pages 68334-68339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26039]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of rate order.
-----------------------------------------------------------------------
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-51, which increases the power rates for the
Integrated System pursuant to the following Integrated System Rate
Schedules:
Rate Schedule P-04, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-04, Wholesale Rates for Non-Federal Transmission/
Interconnection Facilities Service
Rate Schedule EE-04, Wholesale Rate for Excess Energy
The rate schedules supersede the existing rate schedules shown
below:
Rate Schedule P-02, Wholesale Rates for Hydro Peaking Power--
(superseded by P-04)
Rate Schedule NFTS-02, Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities Service-- (superseded by NFTS-
04)
Rate Schedule EE-02, Wholesale Rate for Excess Energy--(superseded by
EE-04)
The effective period for the rate schedules specified in Rate Order
No. SWPA-51 is January 1, 2005, through September 30, 2008.
FOR FURTHER INFORMATION CONTACT: 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: Southwestern Power Administration's
(Southwestern) Administrator has determined, based on the 2004
Integrated System Current Power Repayment Study, that existing rates
will not satisfy cost recovery criteria specified in Department of
Energy Order No. RA 6120.2 and Section 5 of the Flood Control Act of
1944. The finalized 2004 Integrated System Power Repayment Studies
(PRSs), indicate that an increase in annual revenue of $8,576,164, or
7.5 percent, beginning January 1, 2005, will satisfy cost recovery
criteria for the Integrated System projects. The proposed
[[Page 68335]]
Integrated System rate schedules would increase annual revenues from
$114,973,800 to $123,549,964, primarily to recover increased
expenditures in operations and maintenance (O&M) and investment. In
addition, the PRS indicates the need for an annual increase of $737,300
in revenues received through the Purchased Power Adder to recover
increased purchased energy costs. This rate proposal also includes a
provision to continue the Administrator's Discretionary Purchased Power
Adder Adjustment, to adjust the purchased power adder annually, of up
to $0.0011 per kilowatthour as necessary, at his/her discretion, under
a formula-type rate, with notification to the FERC.
The Administrator 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'' in connection
with the proposed rate schedule. On June 4, 2004, Southwestern
published notice in the Federal Register, 69 FR 31608, of a 90-day
comment period, together with a Public Information Forum and a Public
Comment Form, to provide an opportunity for customers and other
interested members of the public to review and comment on a proposed
rate increase for the Integrated System. Both public forums were
canceled since no one expressed an intention to participate. Written
comments were accepted through September 2, 2005. Three comments were
received and are addressed in this rate proposal.
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, Suite 1400, One
West Third Street, Tulsa, Oklahoma 74103.
Following review of Southwestern's proposal within the Department
of Energy, I approved, Rate Order No. SWPA-51, on an interim basis
through September 30, 2008, which increases the existing Integrated
System annual revenue requirement to $123,549,964 per year for the
period January 1, 2005, through September 30, 2008.
Dated: November 16, 2004.
Kyle E. McSlarrow,
Deputy Secretary.
Order Confirming, Approving and Placing Increased Power Rate Schedules
in effect on an Interim Basis
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 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
FERC confirmation and approval of the following Integrated System
(System) rate schedules was provided in FERC Docket No. EF02-4011-000
issued October 22, 2003, for the period October 1, 2002, through
September 30, 2006:
Rate Schedule P-02, Wholesale Rates for Hydro Peaking Power--
(superseded by P-04)
Rate Schedule NFTS-02, Wholesale Rates for Non-Federal Transmission/
Interconnection Facilities Service--(superseded by NFTS-04)
Rate Schedule EE-02, Wholesale Rate for Excess Energy--(superseded by
EE-04)
Southwestern Power Administration's (Southwestern), Current Power
Repayment Study (PRS) indicates that the existing rates will not
satisfy present financial criteria regarding repayment of investment
within a 50-year period due to cost adjustments to reflect the final
cost allocation approval for the Harry S. Truman Project plus
increasing operation and maintenance expenditures and investment for
both the U.S. Army Corps of Engineers (Corps) and Southwestern. The
revised PRS indicates that an increase in annual revenues of $8,576,164
is necessary beginning January 1, 2005, to accomplish repayment in the
required number of years. Accordingly, Southwestern has prepared
proposed rate schedules based on the additional revenue requirement and
the 2004 Rate Design Study.
Informal meetings were held in April and May 2004 with customer
representatives to review the repayment and rate design processes and
present the basis for an approximately 8 percent annual revenue
increase. In May 2004, Southwestern prepared a proposed 2004 PRS for
the Integrated System.
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
adjustments. More specifically, opportunities for public review and
comment on proposed System power rates during a 90-day period were
announced by notice published in the Federal Register June 4, 2004, (69
FR 31608). A Public Information Forum was scheduled for June 29, 2004,
in Tulsa, Oklahoma, and a Public Comment Forum was scheduled for July
27, 2004, also in Tulsa. Both were canceled since no one expressed an
intention to attend. Written comments were due by September 2, 2004.
Southwestern mailed copies of the proposed May 2004 PRS and Rate Design
Studies to customers and interested parties that requested the data,
for review and comment during the formal period of public
participation.
Following conclusion of the comment period on September 2, 2004,
comments presented during the formal public participation process were
reviewed. Once all comments were carefully evaluated and responded to,
the 2004 PRS and Rate Design Studies were completed. Changes were made
to the 2004 PRS to reflect final audited financial data for FY 2003 and
to reflect refinements in cost estimates. The studies were finalized in
September 2004. The Administrator decided to submit the rate proposal
for interim approval and implementation. The comments resulting from
the public participation process and responses, as developed by
Southwestern's staff, are contained in this Rate Order.
Discussion
General
The existing rate schedules developed in the 2002 Integrated System
PRS were the basis for revenue determination in the September 2004
Integrated System Current PRS. The Current PRS indicates that existing
rates are insufficient to produce the annual revenues necessary to
accomplish repayment of the capital investment as required by Section 5
of
[[Page 68336]]
the Flood Control Act of 1944 and Department of Energy (DOE) Order No.
RA 6120.2.
A Revised PRS was prepared based on $8,576,164 of additional annual
revenue beginning January 1, 2005, to satisfy repayment criteria.
In Southwestern's 2004 Rate Proposal, two noteworthy issues are
described in detail. The issues are: (1) the final approval of the
Harry S. Truman (Truman) project cost allocation, and (2) the rate
design procedures for implementing the revenue increase.
Harry S. Truman Final Cost Allocation
The final approval of the Truman cost allocation was issued by the
Corps on May 3, 2003. Estimates for the cost allocation adjustments are
included in this PRS. The Corps will make adjustments to Operation and
Maintenance Expenses, Interest and Investment to reflect the change in
joint-use percentages. The Corps has indicated that adjustments will be
made to the Corps' FY 2004 power reports and reflected on their FY 2004
financial statements, which will be reviewed and certified by the
auditors. The adjustments will then be included in the historical
actual data in the 2005 PRS.
Change to Rate Design Procedures
Several customers requested Southwestern to consider assigning the
revenue increase to the peaking energy rate in lieu of the capacity
rate. This alternative was requested to help some customers pass on the
increased costs from Southwestern as a fuel cost adjustment to their
customers without the need for a formal rate increase. Southwestern
presented proposed alternative rate designs that might meet the
customers' needs, while at the same time meeting Southwestern's
repayment requirements together with the most recent rate design
process. The customers that attended a meeting at which Southwestern
made this presentation reached a consensus that they would prefer that
Southwestern submit the rate design incorporating the changes in the
energy rate in the proposed rate filing. The change in the rate design
resulted in little, if any, impact on customers as compared with the
most recent rate design process.
Rates were designed to recover the additional revenue requirements.
The monthly demand charge for the sale of Federal hydroelectric power
has increased. The energy charge was separated into a peaking energy
charge and a supplemental energy charge, both of which reflected
increases over the current base energy rate. The transformation charge,
though paid by a few customers having 69 kV and below deliveries, has
increased and affects revenues as well. In addition, transmission
charges for non-Federal, firm service have increased. The increases to
both transformation and transmission charges are due to including
projected additions and replacements to Southwestern's aging
transmission facilities since the last rate change.
In accordance with FERC's Order No. 888, Southwestern will continue
charging separately for five ancillary services and offering network
transmission service.
In accordance with FERC's Order No. 888, Southwestern will continue
charging separately for five ancillary services and offering network
transmission service. Southwestern's rate design has separated the five
ancillary services for all transmission service. Two ancillary
services, Scheduling, System Control and Dispatch Service together with
Reactive and Voltage Support Service, are required for every
transmission transaction. These charges are also a part of the capacity
rate for Federal power. This is consistent with Southwestern's long-
standing practice of charging for the sale and delivery of Federal
power in its Federal demand charge. The three remaining ancillary
services will be made available to any transmission user within
Southwestern's control area, including Federal power customers. The
rate schedules for Peaking Power and Non-Federal Transmission Service
reflect these charges. Network transmission service is provided to
those, also within Southwestern's control area, who request the
service, but for non-Federal deliveries only, and who contracted with
Southwestern for this service prior to the Southwest Power Pool
offering Network Service. The rate for and application of this service
are identified in the Non-Federal Transmission/ Interconnection
Facilities Service Rate Schedule, NFTS-04.
With respect to the Purchased Power Adder (Adder), Southwestern is
proposing, as in all previous proposals beginning with the 1983
implementation of the purchased power rate component, that the Adder be
set equal to the current average long-term purchased power rate
requirement. As shown in the Rate Design Study, the amount is
determined by dividing the estimated total average direct purchased
power costs by Southwestern's total annual contractual 1200-hour
peaking energy commitments to the customers (exclusive of contract
support arrangements). In this rate proposal, the resulting Adder is
$0.0028 per kWh of peaking energy. The total revenue created through
application of this Adder would enable Southwestern to cover its
average annual purchased power costs.
Comments and Responses
The Southwestern Power Administration (Southwestern) responded to
numerous questions to which responses were provided during the public
participation period which are included in the background information.
In addition, Southwestern received comments from three entities during
the public participation process. Those comments and Southwestern's
responses are summarized into five general areas of concern, and are as
follows:
Control Costs
Comments
Southwestern and the Corps should schedule future needed work so as
not to cause a rate increase by doing all the work in the same fiscal
year. The commenter suggests that the big projects be leveled out over
time to achieve this end.
Response
Southwestern agrees with the commenter and will make every effort
to assure that its forecasts of future needed work represent what
Southwestern will be able to achieve in a particular year. Southwestern
has coordinated future Corps activities with a joint Corps/
Southwestern/Customer Group to assure that the Corps levels out its
large projects, if practical, and includes in each year's projections
no more than what it believes it will be able to accomplish in that
year. Balancing the need to ensure that the hydroelectric facilities
are in good serviceable condition and the cost of keeping those
facilities in that condition is an on-going concern continually
monitored by the two agencies. Southwestern supports performance of
large maintenance efforts in phases where feasible. Further, by the
nature of the power repayment study process, large project costs
incurred in any year (except the last year of the Cost Evaluation
Period (CEP)) would have little effect on the need for a rate increase.
Southwestern is careful to avoid incorporating such cost variations in
the last year of the CEP.
Unfunded Retirement, Health, and Life Insurance Benefits
Comments
One commenter acknowledges that inclusion of ``unfunded'' Civil
Service
[[Page 68337]]
Retirement System (CSRS)/Health/Life Insurance Benefits as a cost in
Southwestern's rates was raised in Southwestern's 2002 rate case before
the FERC. However, the commenter states that they will continue to
raise this issue until all federal agencies that are self-supporting
pay for these future funding shortfalls in the same manner as the Power
Marketing Administrations. Another commenter does not oppose the
inclusion of ``unfunded'' CSRS costs in the rates, but believes that
Southwestern should: (1) Properly account for the additional interest
effects of the revenues collected for future retirements; (2) credit
Southwestern's balance to be repaid with compounded interest from the
collected funds; and (3) not repay investments without consideration of
customer deposits.
Response
The Federal Accounting Standards Advisory Board issued Statement of
Federal Financial Accounting Standards (SFFAS) 5 (September
1995) which provides guidance on how to determine and handle accounting
treatment of these post retirement costs. In FY1998 Southwestern began
recording values for the post retirement benefits, based on cost
factors provided by the Office of Personnel Management (OPM). OPM
provides, annually, cost factors for computing these unfunded post
retirement expenses in three areas; pensions, health insurance and life
insurance.
OPM's actuarial calculations are based in large measure on its
assumptions about the future. Both economic (inflation, interest rates,
and future salary levels) and demographic (e.g., rates of retirement,
mortality, and separation) assumptions are included in the
calculations.
SFFAS 5 (paragraph 59) states, ``For pension and other
retirement benefits, the expense is recognized at the time the
employees' services are rendered.''
SFFAS 5 (paragraph 74) states, ``The Federal employer
entity should recognize a pension expense in its financial report that
equals the service cost. Service cost is defined as the actuarial
present value of benefits attributed by the pension plan's benefit
formula to services rendered by employees during an accounting period.
The term is synonymous with normal cost.''
Financial Accounting Standards Interpretation Number 4; Accounting
for Pension Payments in Excess of Pension Expense: Changes in normal
costs due to re-estimates of demographic and economic assumptions
should be accounted for by the recording entity. The effect of the
change should be recognized in current and future years.
OPM takes an annual snap shot of what the normal cost would be to
determine the uncaptured (unfunded) post retirement costs. This process
involves a review of actuarial data for both retirees and current
employees, with the retirement cost factor only being applied to
current Federal employees in the CSRS retirement system. The unfunded
amounts for health and life apply to all current employees.
This post retirement cost is an annual cost of operations and is
recorded as part of each agency's annual operation and maintenance
cost. It is not an expense deferred to a future period, as Paragraph 59
of SAFFAS 5 clearly defines it as a current year cost. It is
recorded as such in Southwestern's financial records.
Southwestern agrees with the comment that it should properly
account for the additional interest effects of the revenues collected
and believes that we are currently doing so. As stated in the 2002
Integrated System rate case, Southwestern's existing procedure imputes
an interest credit at current year interest rates on all revenues
received--which would include revenues received to repay CSRS costs.
The effect of the interest credit carries throughout the entire
repayment period. Likewise, annual costs, such as the unfunded costs at
issue here, will also incur an interest charge. Regarding the issue of
applying revenues received for CSRS expenses to Southwestern's debt,
the application of revenues is specified by DOE Order 6120.2 (paragraph
8c(3)) which states ``Annual revenues will be first applied to the
following recovery of costs during the year in which they occurred:
operation and maintenance (O&M), purchased and exchanged power,
transmission service and other, and interest expense and any
appropriation amortization of revenue bonds. Remaining revenues are
available for amortization * * *'' Therefore, Southwestern applies its
revenues received to cover the CSRS expenses (a current year cost)
before it applies any revenue toward the amortization of the Federal
investment.
Increased Corps O&M Expenses
Comments
Commenters state that the Corps' expenses continue to spiral upward
annually--unchecked and that Southwestern should obtain information
from the Corps that would support the projected O&M expenses, not just
rely on unexplained assurances that the O&M is justified.
Response
Projections for Corps O&M are developed by the Corps and provided
to Southwestern annually. The Corps makes projections of its base O&M
costs using historical information and planning documents, and also
includes projections for large maintenance items for each of the
projects that they expect to complete. These projections are made in
current year dollars and do not include inflation. Southwestern reviews
this information, questioning the Corps where inconsistencies seem to
occur, clarifying its understanding of the cost estimates, and
adjusting the estimates to future year dollars based on the Gross
Domestic Product Index to incorporate inflationary expectations.
The Corps' base O&M expenses are largely related to salaries.
During recent years, all Federal employees have received approximately
a 4 percent increase in salaries annually, together with the increased
costs of benefits incurred for these employees. These personnel costs
are included in the base estimates for O&M. These base estimates,
together with the large maintenance items have resulted in actual
increased O&M costs for the Corps. Although the Corps has historically,
in total, been fairly accurate, its projections for O&M costs for the
past four years have been less than what was recorded as expended on
its financial statements. The Corps has confirmed that the past few
years' projections were based on anticipated reductions in funding, but
realized it was underestimating and has been increasing its estimates
to better reflect its expected expenditures. Southwestern agrees with
the Corps that the increased estimates of O&M costs better reflect its
expenditures. The Corps' O&M costs are not anticipated to decrease so
long as all phases of project rehabilitations and a backlog of
maintenance remain to be completed on the projects.
Southwestern has no oversight authority with regard to Corps
expenditures for O&M activities, but is responsible for repaying the
Corps' power-related costs pursuant to the Flood Control Act of 1944.
The Corps is responsible for managing their organization. Southwestern
agrees that such costs should be prudently and timely incurred at
reasonable levels consistent with sound business principles.
Southwestern has inquired further of the Corps and has been advised
that the Corps believes that its FY 2004 O&M estimates fairly represent
[[Page 68338]]
the minimum expenditure level expected for the projects' O&M and that
this level of expenditure is expected to be reflected on its financial
statements. The Corps believes that its internal controls, accounting
system reviews, audits and funding procedures effectively provide the
needed level of justification, consistency and control of its O&M
expenditures.
Isolated Projects and Bundled Rates
Comment
One Commenter stated the belief that the customers who take power
from Narrows, Denison and Whitney pay bundled rates, without receiving
any benefit from Southwestern's transmission system. These customers
pay other providers for the same services and should receive a credit
from Southwestern for incurring the extra costs that a typical
Southwestern customer does not pay. These customers agree with paying
Southwestern for the services they receive, but do not believe they
should be paying for transmission and ancillary services that they do
not use. In addition, they believe they should receive credit for
incurring costs that the typical Southwestern customer does not.
Response
Southwestern's position on this issue has not changed from its 1997
and 2002 Integrated System rate package responses. Southwestern's sales
of Federal power and energy are based on a ``postage-stamp'' type rate,
which is based on the financial integration of all the projects
marketed under the Integrated System, as well as various components of
Southwestern's transmission system. The capacity rate for all Federal
power customers includes a transmission component and the two required
ancillary services. The transmission component of this rate has been
set to assure that Southwestern charges itself the same rates it
charges for the use of the transmission system for wheeling non-Federal
power.
The customers who receive the total output of specific Corps
projects that are presently electrically isolated from Southwestern's
primary interconnected system requested, at the time of their contract
renewal, financial integration of such projects into the Integrated
System to receive certain benefits, including lower costs. Such
customers receive a number of benefits from their project purchases
that other Federal customers do not, such as overload capacity,
condensing, greater scheduling flexibility, and an exclusion from
paying the Purchased Power Adder because of their obligation to meet
Southwestern's 1200 hour minimum delivery requirement. Such projects
also include components of Southwestern's transmission system and
switchyard facilities used to deliver power and energy from the dams,
and the costs of such facilities are recovered under the Integrated
System rates. Revenues from all sales within the Integrated System are
applied toward repayment of all Federal investment for all projects,
regardless of their electrical integration status.
Southwestern is not required by FERC Order No. 888 or Order No.
2000 to offer unbundled services to its customers. Section 5 of the
Flood Control Act of 1944 sets forth the statutory requirements for the
sale and delivery of Federal power and energy. Furthermore, based on
DOE policy, ``each of the PMAs that own transmission facilities will
publish generally applicable open access wholesale transmission tariffs
and will take service itself under such tariffs. The tariffs will
include rates, terms, and conditions, and will offer transmission
services, including ancillary services, to all entities eligible to
seek a transmission order under section 211 of the Federal Power Act *
* *'' Southwestern has complied with this policy in separating its non-
Federal transmission service and to provide for ancillary services.
There is no overriding factor that compels Southwestern to change
its previous determination that those customers who are presently
electrically isolated from Southwestern's primary interconnected system
do, in fact, derive benefit from the projects themselves and the
transmission system and related facilities, and the power rate charged
to the customers reflects such benefits. The parties expressing these
concerns voluntarily and knowingly entered into long-term contractual
arrangements to receive the benefits of these projects at integrated
system rates. Based on prior FERC orders, we believe it is
inappropriate for the parties again to seek, through the rate
development process, to overturn what was done by their request and for
their benefit through mutually agreeable bilateral contracts.
Alternative Rate Design
Comment
A commenter has stated that an alternative rate design was adopted
by Southwestern without informed customer input.
Response
Several customers asked Southwestern to consider assigning the 2004
Integrated System revenue increase to the peaking energy rate in lieu
of the capacity rate. The requested action was intended to help some
customers pass on the increased costs from Southwestern through their
fuel cost adjustments without having to formally increase their rates.
Southwestern presented proposed alternative rate designs that might
meet the customers' needs and at the same time meet Southwestern's
repayment requirements, together with the most recent rate design
process, at a special meeting held several weeks after the request.
Many of the customers and a representative of the commenter were in
attendance. The attendees reached a consensus that they would prefer
that Southwestern submit the alternative rate design currently in the
proposed rate filing. All customers and interested parties had a formal
90-day public comment period in which to review the proposed rate
filing and provide comments. Only one commenter expressed any
opposition to the proposed rate design based on the increased costs to
them. Several customers verbally indicated their appreciation of the
consideration of the customer request by Southwestern.
Because of the commenter's concern regarding increased costs to
customers as a result of the proposed rate design, Southwestern
reviewed the proposed rate design and determined that in separating the
base energy rate between peaking energy and supplemental energy, some
of the costs associated with the supplemental energy rate were
incorrectly assigned to the peaking energy rate. As a result, the rates
were adjusted to more accurately reflect the appropriate cost
assignment. Southwestern then estimated the financial impacts to the
customers and determined that the currently proposed rate design will
meet Southwestern's repayment requirements and not cost the customers
and, in particular, the commenter, any more than what it would have
cost them under the previous rate design.
Other Issues
Other issues are discussed in the Administrator's Record of
Decision.
Availability of Information
Information regarding this rate proposal, including studies,
comments and other supporting material, is available for public review
and comment in the offices of Southwestern
[[Page 68339]]
Power Administration, One West Third Street, Tulsa, OK 74101.
Administrator's Certification
The September 2004 Revised Power Repayment Study indicates that the
increased power rates will repay all costs of the Integrated System
including amortization of the power investment consistent with the
provisions of Department of Energy Order No. RA 6120.2. In accordance
with Delegation Order No. 00-037.00, December 6, 2001, and Section 5 of
the Flood Control Act of 1944, the Administrator has determined that
the proposed System rates are consistent with applicable law and the
lowest possible rates consistent with sound business principles.
Environment
The environmental impact of the proposed System rates was evaluated
in consideration of DOE's guidelines for implementing the procedural
provisions of the National Environmental Policy Act 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 the Deputy Secretary of Energy, I hereby confirm, approve and place
in effect on an interim basis, effective January 1, 2005, the following
Southwestern Integrated System Rate Schedules, which shall remain in
effect on an interim basis through September 30, 2008, or until the
FERC confirms and approves the rates on a final basis.
Dated: November 6, 2004.
Kyle E. McSlarrow,
Deputy Secretary.
[FR Doc. 04-26039 Filed 11-23-04; 8:45 am]
BILLING CODE 6450-01-P