[Federal Register Volume 70, Number 33 (Friday, February 18, 2005)]
[Notices]
[Pages 8361-8362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3146]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project--Rate Order No. WAPA-120

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Rate Adjustment and Extension of Rate-
Setting Formula.

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SUMMARY: The Western Area Power Administration (Western) is initiating 
a rate adjustment process for Boulder Canyon Project (BCP) electric 
service. Western proposes to extend the existing rate-setting formula, 
and approve the proposed base charge and rates for FY 2006. Publication 
of this Federal Register notice begins the formal process to extend the 
existing rate-setting formula and the proposed base charge and rates. 
The proposed base charge and rates will provide sufficient revenue to 
pay all annual costs, including interest expense, and repayment of 
required investment within the allowable period.

DATES: The consultation and comment period begins today and will end 
May 19, 2005. Western will present a detailed explanation of the 
proposed base charge and rates at a public information forum on April 
6, 2005, 10:30 a.m. MST, Phoenix, AZ. Western will accept oral and 
written comments at a public comment forum on May 4, 2005, 10:30 a.m. 
MST, Phoenix, AZ.
    Western will accept written comments any time during the 
consultation and comment period.

ADDRESSES: The public information forum and public comment forum will 
be held at the Desert Southwest Regional Customer Service Office, 615 
South 43rd Avenue, Phoenix, AZ. Send written comments to 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 will post information about the 
rate process on its Web site at http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm. Western will post official comments received via letter 
and e-mail to its Web site after the close of the comment period. 
Western must receive written comments by the end of the consultation 
and comment period to ensure they are considered in Western's decision 
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, telephone (602) 
605-2442, e-mail [email protected].

SUPPLEMENTARY INFORMATION: Annual base charge and rates adjustments are 
required by the existing rate-setting formula methodology approved by 
the Federal Energy Regulatory Commission (Commission) on April 19, 
1996. Rate Schedule BCP-F5 was placed into effect on November 1, 1995, 
and expires on September 30, 2005. Western proposes to extend the 
existing rate-setting formula through September 30, 2010, and approve 
the proposed base charge and rates for FY 2006. The proposed base 
charge and rates for BCP electric service are designed under the 
existing rate-setting formula to recover an annual revenue requirement 
that includes investment repayment, interest, operation and 
maintenance, replacements, payment to states, visitor services, and 
uprating program payments. These annual costs are reduced by the 
projected revenue from water sales, visitor services, water pump energy 
sales, facility use charges, miscellaneous leases, and late fees. The 
annual revenue requirement is the annual base charge. The annual base 
charge for electric service is divided equally between capacity and 
energy. 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 Energy (DOE) approved the extension of the 
existing rate-setting formula and Rate Schedule BCP-F6 for BCP firm 
power service on September 18, 2000 (Rate Order No. WAPA-94, October 
13, 2000), and the Commission confirmed and approved the schedule on 
July 31, 2001, under FERC Docket No. EF00-5092-000. Approval for the 
rate-setting formula and Rate Schedule BCP-F6 covered 5 years beginning 
on October 1, 2000, ending on September 30, 2005.
    Under Rate Schedule BCP-F6, the composite rate is 14.82 mills/kWh 
and the base charge is $57,654,683 for FY 2005. The forecasted energy 
rate is 7.41 mills per kilowatt-hour (mills/kWh) and the forecasted 
capacity rate is $1.39 per kilowatt month (kWmonth). Under Rate 
Schedule BCP-F7, the proposed base charge for FY 2006 will result in an 
overall composite rate increase of about 10 percent. The proposed base 
charge will increase about 7 percent, the proposed forecasted energy 
rate will increase about 10 percent, and the proposed forecasted 
capacity rate will increase about 7 percent. The proposed base charge 
and rates for BCP electric service are listed in the following table.

        Table 1.--Proposed Electric Service Base Charge and Rates
------------------------------------------------------------------------
                                                Proposed base
                                Existing base    charge and     Percent
                                 charge and    rates  October    change
                                    rates          1, 2005
------------------------------------------------------------------------
Total Composite (mills/kWh)..           14.82           16.43         10
Base Charge ($)..............     $57,654,683     $61,694,940          7
Energy Rate (mills/kWh)......            7.41            8.21         10
Capacity Rate ($/kWmonth)....           $1.39           $1.49          7
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Legal Authority

    Since the rate-setting formula and proposed base charge and rates 
constitute a major rate adjustment as defined by 10 CFR part 903, 
Western will hold both a public information forum and a public comment 
forum. After review of public comments, and possible amendments or 
adjustments, Western will recommend the Deputy Secretary of Energy 
extend the rate-setting formula and approve the proposed base charge 
and rates for FY 2006 on an interim basis.
    Western is establishing the electric service base charge and rates 
for BCP

[[Page 8362]]

under the Department of Energy Organization Act (42 U.S.C. 7152); the 
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, 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 projects involved.
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to Western's Administrator; (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to the Commission. Existing Department of Energy 
(DOE) procedures for public participation in power rate adjustments (10 
CFR part 903) were published on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that Western initiates or uses to develop the proposed base 
charge and rates are available for inspection and copying at the Desert 
Southwest Customer Service Regional Office, Western Area Power 
Administration, located at 615 South 43rd Avenue, Phoenix, Arizona. 
Many of these documents and supporting information are also available 
on Western's Web site at: http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm.

Regulatory Procedure 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 of 
particular applicability involving rates or services applicable to 
public property.

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 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; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

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 of particular applicability relating to rates or services 
and involves matters of procedure.

    Dated: February 7, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05-3146 Filed 2-17-05; 8:45 am]
BILLING CODE 6450-01-P