[Federal Register Volume 70, Number 126 (Friday, July 1, 2005)]
[Notices]
[Pages 38130-38131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13010]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Arizona Project-Rate Order No. WAPA-124

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed transmission rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
revised rates for the Central Arizona Project (CAP) firm point-to-point 
transmission service, nonfirm point-to-point transmission service, and 
Network Integration Transmission Service (NITS) on the CAP 115 kilovolt 
(kV) and 230-kV transmission lines. Current rates, under Rate Schedules 
CAP-FT1, CAP-NFT1 and CAP-NITS1, extend through December 31, 2005. 
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 Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2, 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 rates.

DATES: The consultation and comment period begins today and will end 
September 29, 2005. Western will present a detailed explanation of the 
proposed rates at a public information forum. The public information 
forum is: July 22, 2005, 10-12 p.m. MST, Phoenix, AZ.
    Western will accept oral and written comments at a public comment 
forum. The public comment forum will be held on the following date: 
August 22, 2005, 1 p.m. MST, Phoenix, AZ.

ADDRESSES: Send written comments to Mr. 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 official information about the rate 
process on its Web site at http://www.wapa.gov/dsw/pwrmkt/CAPTRP/CAPTRP.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 and public comment forum will be 
held at: Western's Desert Southwest Region (DSWR) office, 615 South 
43rd Avenue, Phoenix, AZ.

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: Proposed rates for the CAP 115-kV and 230-kV 
transmission lines are designed to recover an annual revenue 
requirement that includes investment repayment, interest, operation and 
maintenance expense, and other expenses.
    The Deputy Secretary of Energy approved Rate Schedules CAP-FT1, 
CAP-NFT1, and CAP-NITS1 for transmission service effective January 1, 
2001 (Rate Order No. WAPA-88, 65 FR 77368, December 11, 2000), and the 
Federal Energy Regulatory Commission (Commission) confirmed and 
approved the rate schedules on July 31, 2001, under FERC Docket No. 
EF01-5111-000 (96 FERC 62,094). Approval for Rate Schedules CAP-FT1, 
CAP-NFT1, and CAP-NITS1 covered 5 years beginning on January 1, 2001, 
ending on December 31, 2005.
    Proposed rates for point-to-point transmission service and NITS on 
the CAP 115BkV and 230-kV transmission lines are based on a revenue 
requirement that recovers the CAP 115BkV and 230-kV transmission lines 
costs for facilities associated with providing transmission service and 
the non-facilities costs allocated to transmission service. Proposed 
rates for point-to-point transmission service on the CAP 115-kV/230-kV 
transmission system are determined by combining the average annual 
amortization costs with the average annual operations and maintenance 
costs, and dividing them by the average annual contract rate of 
delivery for the cost evaluation period, fiscal years FY 2006-FY 2010.

                        Proposed Point-to-Point Cap 115/230-kV Transmission Service Rates
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                                            Existing rates  115/230-kV   Proposed rates 115/230-kV     Percent
             Type of service                          system                  system  1/1/2006          change
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Firm Transmission Service................  $9.83/kW/Year..............  $8.74/kW/year..............      (11.09)
Nonfirm Transmission Service.............  1.87 mills/kWh.............  1.66 mills/kWh.............      (11.23)
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The proposed rates reflect a 11.09% decrease due to decreases in 
operation and maintenance, principal, and interest cost for the five 
year period ending 2010. Implementing the proposed rates results in a 
firm point-to-point CAP 115-kV and 230-kV transmission line rate of 
$8.74 per kilowattyear and a nonfirm point-to-point CAP 115-kV and 230-
kV transmission line rate of 1.66 mills/kWh.

    NITS allows a transmission customer to integrate, plan, 
economically dispatch, and regulate its network resources to serve its 
native load in a way comparable to how a transmission provider uses its 
own transmission

[[Page 38131]]

system to service its native load customers. The monthly charge 
methodology for NITS on the CAP 115-kV and 230-kV transmission lines is 
the product of the transmission customer's load-ratio share times one-
twelfth of the annual transmission revenue requirement. The customer's 
load-ratio share is calculated on a rolling 12-month basis. The 
customer's load-ratio share is equal to that customer's hourly load 
coincident with the CAP 115-kV and 230-kV transmission lines monthly 
transmission system peak divided by the resultant value of the CAP 115-
kV and 230-kV transmission lines monthly transmission system peak minus 
the CAP 115-kV and 230-kV transmission lines coincident peak for all 
firm point-to-point transmission service plus the CAP 115-kV and 230-kV 
transmission lines firm point-to-point transmission service 
reservations.
    The proposed rates include the costs for scheduling, system 
control, and dispatch service.

Legal Authority

    Western is establishing rates for transmission service on the CAP 
115-kV and 230-kV transmission lines under the Department of Energy 
Organization Act (42 U.S.C. 7101-7352); 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 
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.

Availability of Information

    All brochures, studies, comments, letters, memorandums, and other 
documents Western initiates or uses to develop the proposed rates are 
available for inspection and copying at the DSWR office, located at 615 
South 43rd Avenue, Phoenix, Arizona. Many of these documents and 
supporting information are also available on its Web site at http://www.wapa.gov/dsw/pwrmkt/CAPTRP/CAPTRP.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: June 17, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05-13010 Filed 6-30-05; 8:45 am]
BILLING CODE 6450-01-P