[Federal Register Volume 70, Number 115 (Thursday, June 16, 2005)]
[Notices]
[Pages 35079-35080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11883]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects-Rate Order No. WAPA-125

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed power rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
revised rates for Loveland Area Projects (LAP) firm electric service. 
LAP consists of the Fryingpan-Arkansas Project and the Pick-Sloan 
Missouri Basin Program--Western Division, which were integrated for 
marketing and rate-making purposes in 1989. Current rates, under Rate 
Schedule L-F5, expire on December 31, 2008, but are not sufficient to 
meet the LAP revenue requirements. Proposed rates will provide 
sufficient revenue to pay all annual costs, including interest expense, 
and repay required investment within the allowable period. Western will 
prepare a brochure that provides detailed information on the rates to 
all interested parties. Proposed rates, under Rate Schedule L-F6, are 
scheduled to go into effect on January 1, 2006, and will remain in 
effect through December 31, 2010. Publication of this Federal Register 
notice begins the formal process for the proposed rate adjustment.

DATES: The consultation and comment period begins today and will end 
September 14, 2005. Western will present a detailed explanation of the 
proposed rates at public information forums. The public information 
forum dates are:
    1. July 19, 2005, 10 a.m. MDT in Denver, CO.
    2. July 20, 2005, 8 a.m. CDT in Lincoln, NE.
    Western will accept oral and written comments at a public comment 
forum. The public comment forum will be held on the following date:
    1. August 16, 2005, 9 a.m. MDT in Denver, CO.
    Western will accept written comments any time during the 
consultation and comment period.

ADDRESSES: Send written comments to Joel K. Bladow, Regional Manager, 
Rocky Mountain Region, Western Area Power Administration, 5555 East 
Crossroads Boulevard, Loveland, CO 80538-8986, e-mail 
[email protected]. Western will post information about the rate 
process on its Web site under the ``Rate Adjustments'' section at 
http://www.wapa.gov/rm/rm.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.
    The public information forum locations are:
    1. Denver--Radisson Stapleton Plaza Hotel, 3333 Quebec Street, 
Denver, CO.
    2. Lincoln--Peru State College Center (located on the skywalk floor 
of Energy Square; Floor 3 in Center Park Garage), 1111 O Street, 
Lincoln, NE.
    The public comment forum location is:
    1. Denver--Radisson Stapleton Plaza Hotel, 3333 Quebec Street, 
Denver, CO.

FOR FURTHER INFORMATION CONTACT: Mr. Daniel T. Payton, Rates Manager, 
Rocky Mountain Region, Western Area Power Administration, 5555 East 
Crossroads Boulevard, Loveland, CO 80538-8986, telephone (970) 461-
7442, e-mail [email protected].

SUPPLEMENTARY INFORMATION: Proposed rates for LAP firm electric service 
are designed to recover an annual revenue requirement that includes 
investment repayment, interest, purchase power, operation and 
maintenance, and repayment of irrigation assistance costs as required 
by law. The projected annual revenue requirement for firm electric 
service is allocated equally between capacity and energy.
    The Department of Energy approved Rate Schedule L-F5 for LAP firm 
electric service on December 24, 2003 (Rate Order No. WAPA-105, 69 FR 
644, January 6, 2004), and the Federal Energy Regulatory Commission 
(Commission) confirmed and approved the rate schedule on December 21, 
2004, under FERC Docket No. EF04-5181-000 (109 FERC 62,228). Approval 
for Rate Schedule L-F5 covered 5 years beginning on February 1, 2004, 
ending on December 31, 2008.
    Under Rate Schedule L-F5, the composite rate effective on October 
1, 2004, is 23.90 mills per kilowatthour (mills/kWh), the energy rate 
is 11.95 mills/kWh and the capacity rate is $3.14 per kilowattmonth 
(kWmonth). Under Rate Schedule L-F6, Western is proposing a two-step 
rate adjustment. Under a two-step method, the rates for LAP firm 
electric service will result in an overall composite rate increase of 
approximately 9.3 percent effective on January 1, 2006, and another 5.2 
percent effective on January 1, 2007, for a total increase of 
approximately 14.5 percent. The proposed rates for L-F6 firm electric 
service are listed in Table 1.

                  Table 1.--Two-Step Proposal-Firm Electric Service Revenue Requirement & Rates
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                                                      First step rates    Percent   Second step rates   Percent
     Firm electric service         Existing rates       Jan. 1, 2006       change      Jan. 1, 2007      change
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LAP Revenue Requirement........  $48.8 million.....  $53.3 million.....        9.2  $55.8 million....        5.1
LAP Composite Rate.............  23.90 mills/kWh...  26.12 mills/kWh...        9.3  27.36 mills/kWh..        5.2
Firm Energy....................  11.95 mills/kWh...  13.06 mills/kWh...        9.3  13.68 mills/kWh..        5.2
Firm Capacity..................  $3.14/kW-month....  $3.43/kW-month....        9.2  $3.59/kW-month...        5.1
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[[Page 35080]]

Legal Authority

    Since the proposed rates constitute a major 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 that the 
Deputy Secretary of Energy approve the proposed rates on an interim 
basis.
    Western is establishing firm electric service rates for LAP 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 section 5 of 
the Flood Control Act of 1944 (16 U.S.C. 825s); 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.

Availability of Information

    All brochures, studies, comments, letters, memorandums, e-mail, or 
other documents that Western initiates to develop the proposed rates 
are available for inspection and copying at the Rocky Mountain Regional 
Office, located at 5555 East Crossroads Boulevard, Loveland, Colorado. 
Many of these documents, and supporting information, are also available 
on its Web site under the ``Rate Adjustments'' section located at 
http://www.wapa.gov/rm/rm.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 that 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: June 8, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05-11883 Filed 6-15-05; 8:45 am]
BILLING CODE 6450-01-P