[Federal Register Volume 70, Number 58 (Monday, March 28, 2005)]
[Notices]
[Pages 15622-15623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6035]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Customer Service Region-Rate Order No. WAPA-121

AGENCY: Western Area Power Administration, DOE.

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

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SUMMARY: This action is to extend the existing Rate Schedules PD-NTS1, 
INT-NTS1, DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, and DSW-SUR1 
for the Desert Southwest Customer Service Region (DSW) network 
integration transmission services (NTS) for the Parker-Davis Project 
(P-DP) and the Pacific Northwest-Pacific Southwest Intertie Project 
(Intertie) and ancillary services for the Western Area Lower Colorado 
control area through March 31, 2006. The additional time is needed to 
accommodate the extension of the 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) 605-2442, 
e-mail [email protected].

SUPPLEMENTARY INFORMATION: Under the Department of Energy (DOE) 
Organization Act, the Secretary has the authority to confirm, approve 
and place into effect power and transmission rates for the Western Area 
Power Administration (Western). Existing rates are normally extended by 
the Deputy Secretary under Delegation Order Nos. 00-037.00, approved 
December 6, 2001, and 00-001.00A, approved September 17, 2002. As the 
nominee for Deputy Secretary has not yet been confirmed by the Senate, 
I have extended the rates through March 31, 2006.
    Pursuant to applicable Delegation Orders and existing DOE 
procedures for public participation in power and transmission rate 
adjustments in 10 CFR part 903, Western's rate methodology for network 
integration transmission and ancillary services was submitted to the 
Federal Energy Regulatory Commission (Commission) for confirmation and 
approval on May 3, 1999, as supplemented on May 21, 1999. On January 
20, 2000, in Docket No. EF99-5041-000, at 90 FERC 62,032, the 
Commission issued an order confirming, approving, and placing in effect 
on a final basis Western's rate schedules for transmission and 
ancillary services from Western's Desert Southwest Customer Service 
Region. Rate Order No. WAPA-84 was approved for a 5-year period, 
beginning April 1, 1999, and ending March 31, 2004. On March 22, 2004, 
the Deputy Secretary of Energy extended the rates until March 31, 2005, 
under Rate Order No. WAPA-112.
    Western has entered into a public process proposing a MSTR for cost 
recovery purposes for the P-DP, the Intertie, and the Central Arizona 
Project. That process has been extended to evaluate comments received 
during the comment period. The rate order for network transmission and 
ancillary services must be able to accommodate the modifications in the 
MSTR. Western believes that the additional time afforded by extending 
the rate for network integration transmission and ancillary services 
will allow Western to design these rates to ensure cost recovery 
regardless of the transmission rate methodology which the public 
process yields.
    Western's existing formulary network integration transmission and 
ancillary service schedules, which are recalculated annually, would 
sufficiently recover project expenses (including interest) and capital 
requirements through March 31, 2006.
    Following review of Western's proposal within the DOE, I approve 
Rate Order No. WAPA-121, which extends the existing Network Integration 
Transmission and Ancillary Services Rates through March 31, 2006.

    Dated: March 14, 2005.
Samuel W. Bodman,
Secretary.

Order Confirming and Approving an Extension of the Desert Southwest 
Customer Service Region Network Integration Transmission and Ancillary 
Services 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.
    Under the Department of Energy Organization Act, the Secretary has 
the authority to confirm, approve and place into effect power and 
transmission rates for the Western Area Power Administration (Western).

Background

    The existing rate, Rate Order No. WAPA-84, was approved for 5 
years, beginning April 1, 1999, and ending March 31, 2004. On March 22, 
2004, the Deputy Secretary of Energy extended the rates under 10 CFR 
903.23(b) until March 31, 2005, under Rate Order No. WAPA-112.

Discussion

    Western has entered into a public process proposing an MSTR for 
cost recovery purposes for the P-DP, the Intertie, and the Central 
Arizona Project. That process has been extended to evaluate comments 
received during the comment period. The rate order for network 
transmission and ancillary services must be able to accommodate the 
modifications in the MSTR. Western believes that the additional time 
afforded by extending the rate for 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. Upon its approval, Rate Order No. WAPA-112 will be 
extended under Rate Order No. WAPA-121.

[[Page 15623]]

Order

    In view of the above, I hereby extend for a period effective from 
April 1, 2005, and ending March 31, 2006, the existing Ancillary 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.

    Dated: March 14, 2005.
Samuel W. Bodman,
Secretary.
[FR Doc. 05-6035 Filed 3-25-05; 8:45 am]
BILLING CODE 6450-01-P