[Federal Register Volume 70, Number 87 (Friday, May 6, 2005)]
[Notices]
[Pages 24019-24020]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9080]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Washoe Project--Rate Order No. WAPA-119

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing a 
minor rate adjustment for non-firm energy from the Stampede Powerplant 
(Stampede), of the Washoe Project, located in Sierra County, 
California. The current rates expire September 30, 2005. The rate will 
provide sufficient revenue to repay all annual costs, including 
interest expense, and repay required investment within the allowable 
period. The rate impact is detailed in a rate brochure to be provided 
to all interested parties. The proposed new rate is scheduled to go 
into effect October 1, 2005, and will remain in effect through 
September 30, 2010. Publication of this Federal Register notice begins 
the formal process for the proposed rates.

DATES: The consultation and comment period begins today and will end 
June 6, 2005. Western will accept written comments any time during the 
consultation and comment period.

ADDRESSES: Send written comments to Ms. Debbie R. Dietz, Rates Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, e-mail 
[email protected]. Western will post information about the rate process 
on its Web site at http://www.wapa.gov/sn/customers/rates/#currentrates/. 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 the 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: Ms. Debbie R. Dietz, Rates Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4453, e-mail [email protected].

SUPPLEMENTARY INFORMATION: Current rates for the sale of non-firm 
energy from Stampede consist of floor and ceiling rates and are 
designed to recover an annual revenue requirement. The proposed floor 
rate for non-firm energy from Stampede is 17.89 mills/kilowatthour 
(mills/kWh) and on average for the 5-year rate period provides 
sufficient revenue to pay for 96 percent of annual expenses, excluding 
interest expense. The current ceiling rate was set by a power repayment 
study and provides sufficient revenues to repay all annual costs, 
including interest expense, and the investment within the allowable 
period.
    The Central Valley Project (CVP) Power Marketing Plan states that 
the output from the Washoe Project remaining after meeting project use 
loads will be marketed to CVP preference customers. Beginning January 
1, 2005, the costs remaining after meeting project use requirements are 
included in the CVP power revenue requirement (PRR) on an annual basis. 
This situation makes it unnecessary to establish a new proposed ceiling 
rate for Stampede. Western's Contract No. 94-SAO-00010 with the Sierra 
Pacific Resources (Sierra) sets the floor rate. Based on estimated 
expenses and projected revenues generated from the floor rate, Western 
anticipates including an annual average cost of $401,000 in the CVP PRR 
for the 5-year rate case period (fiscal year 2006-2010).
    To serve project use loads and market the energy from Stampede, 
Western's contract with Sierra provides for the Stampede Energy 
Exchange Account (SEEA). SEEA is an annual energy exchange account for 
Stampede energy. Under this contract, Sierra accepts delivery of all 
energy generated from Stampede into Sierra's electrical system. The 
dollar value of the Stampede energy received by Sierra during any month 
is credited into the SEEA at the floor rate. Western can use the SEEA 
to benefit project use facilities and market energy from Stampede to 
preference entities. The formula for the proposed floor rate, per the 
contract with Sierra, is equal to 85 percent of the then effective, 
non-time differentiated rate provided in Sierra's California Quarterly 
Short-Term Purchase Price Schedule for as-available purchases from 
qualifying facilities with capacities of 100 kilowatts (kW) or less. 
This proposed floor rate is used to calculate the value of the SEEA and 
determines the benefit of Stampede power for project use loads. Western 
applies the ratio of projected project use costs to the projected 
revenue recorded in the SEEA to determine a non-reimbursable 
percentage. This non-reimbursable percentage is then applied to the 
appropriate power-related costs to determine the reimbursable costs. 
The reimbursable costs are reduced by revenues from sales made at the 
floor rate. Under the 2004 CVP Power Marketing Plan, the remaining 
reimbursable costs and the estimated energy remaining after meeting 
project use service are then transferred to the CVP PRR.
    The propose rate formula for Stampede power is:

Stampede Annual Transferred PRR = Stampede Annual PRR - Stampede 
Revenue
Where:
Stampede Annual Transferred PRR = Stampede annual costs (Power Revenue 
Requirement) and associated energy transferred to the CVP.
Stampede Annual PRR = The total power revenue requirement for Stampede 
required to repay all annual costs, including interest and the 
investment within the allowable period.
Stampede Revenue = Revenue generated from the floor rate and project 
generation.
    Western will review the total PRR for Stampede annually in or 
around April of each year. According to Contract No. 94-SAO-00010 that 
governs SEEA administration, in April of each year, Western is notified 
of the balance of the

[[Page 24020]]

SEEA. According to the rate procedures for the CVP, Western will review 
the CVP PRR in March and September of each year. Western will analyze 
the CVP financial data from October through February, to the extent 
information is available, as well as forecasted data for March through 
September. In the case of Stampede, Western will use the disposition of 
the SEEA account through February and estimate March through September 
to determine the amount of costs to be included in the CVP PRR. Again, 
in September when the next review occurs, Western will use the same 
methodology to include costs in the CVP PRR. Western estimates the 
Stampede Annual Transferred PRR for October 2005 through September 2006 
to be $401,000.
    A comparison of existing and proposed rates follows:

                                    Comparison of Existing and Proposed Rates
                                      [Washoe Project, Stampede Powerplant]
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                                                             Existing rates    Proposed rates
                  Non-firm existing rates                     as of 10/1/00   (effective 10/1/   Percent change
                                                               (Mills/kWh)           05)
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Floor Rate (Mills/kWh)....................................             17.89             17.89                 0
Ceiling Rate..............................................             90.07               N/A               N/A
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Legal Authority

    Stampede is a feature of the Washoe Project authorized by Congress 
in 1956 and is located on the Little Truckee River in Sierra County, 
California. The powerplant has a maximum operating capability of 3,650 
kW with an estimated annual generation of 11 million kilowatthours 
(kWh). Since Stampede has an installed capacity of less than 20,000 kW 
and generates less than 100 million kWh annually for sale, the proposed 
rates constitute a minor rate adjustment. Western has determined that 
it is not necessary to hold a public information or comment forum for 
this proposed minor rate adjustment as defined by 10 CFR part 903. 
After review of public comments, and possible amendments or 
adjustments, Western will recommend the Deputy Secretary of Energy 
approve proposed rates for non-firm energy from Stampede on an interim 
basis.
    These proposed rates for non-firm energy for Stampede are being 
established 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 Act of 1939 (43 U.S.C. 485h(c)); and other acts that 
specifically apply to the project 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 rates 
are available for inspection and copying at the Sierra Nevada Regional 
Office, located at 114 Parkshore Drive, Folsom, California. Many of 
these documents and supporting information are also available on the 
Web site under the ``Current Rates'' section located at http://www.wapa.gov/sn/customers/rates/#currentrates/.

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; so this notice requires no clearance by the 
Office of Management and Budget.

Small Business Regulatory Enforcement Fairness Act

    Western has determined 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: April 25, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05-9080 Filed 5-5-05; 8:45 am]
BILLING CODE 6450-01-P