[Federal Register Volume 71, Number 6 (Tuesday, January 10, 2006)]
[Notices]
[Pages 1531-1533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-108]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Power Rate Schedule

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective 
December 6, 2001, and 00-001.00B, effective July 28, 2005, the Deputy 
Secretary has approved and placed into effect on an interim basis Rate 
Order No. SWPA-54, which increases the power rate for the Sam Rayburn 
Dam Project (Rayburn) pursuant to the following Sam Rayburn Dam Rate 
Schedule:

Rate Schedule SRD-05, Wholesale Rates for Hydropower and Energy Sold 
to Sam Rayburn Dam Electric Cooperative, Inc. (Contract No. DE-PM75-
92SW00215)

The effective period for the rate schedule specified in Rate Order No.

[[Page 1532]]

SWPA-54 is January 1, 2006, through September 30, 2009.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, Department of Energy, One West Third Street, Tulsa, 
Oklahoma 74103, (918) 595-6696, [email protected].

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for 
the Rayburn is $2,513,700 per year. The Deputy Secretary of Energy 
confirmed, approved and placed in effect on an interim basis this rate 
on November 16, 2004, for the period January 1, 2005, through September 
30, 2008. This rate has not yet been approved on a final basis by the 
Federal Energy Regulatory Commission (FERC). The 2005 Rayburn Power 
Repayment Studies indicates the need for an increase in the annual rate 
by $300,364 or 12 percent beginning January 1, 2006.
    The Administrator, Southwestern Power Administration (Southwestern) 
has followed Title 10, Part 903 Subpart A, of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' (Part 903) in connection 
with the proposed rate schedule. On August 29, 2005, Southwestern 
published notice in the Federal Register (70 FR 51034), of a 90-day 
comment period, together with a Public Information Forum and a Public 
Comment Forum, to provide an opportunity for customers and other 
interested members of the public to review and comment on a proposed 
rate increase for the Willis project. Both public forums were canceled 
when no one expressed an intention to participate. Written comments 
were accepted through November 28, 2005. One comment was received from 
Gillis & Angley, Counsellors at Law, on behalf of Sam Rayburn Municipal 
Power Authority (an entity of Sam Rayburn Dam Electric Cooperative), 
which stated that they had no objection to the proposed rate 
adjustment.
    Information regarding this rate proposal, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved Rate Order No. SWPA-54, on an interim basis, 
which increases the existing Sam Rayburn rate to $2,816,064, per year, 
for the period January 1, 2006, through September 30, 2009.

    Dated: December 23, 2005.
Clay Sell,
Deputy Secretary.

In the Matter of: Southwestern Power Administration, Sam Rayburn Dam 
Project Rate; Order Confirming, Approving and Placing Increased Power 
Rate Schedule in Effect on an Interim Basis

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern 
Power Administration (Southwestern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 0204-108, effective 
December 14, 1983, the Secretary of Energy delegated to the 
Administrator of Southwestern the authority to develop power and 
transmission rates, delegated to the Deputy Secretary of the Department 
of Energy the authority to confirm, approve, and place in effect such 
rates on an interim basis and delegated to the Federal Energy 
Regulatory Commission (FERC) the authority to confirm and approve on a 
final basis or to disapprove rates developed by the Administrator under 
the delegation. Delegation Order No. 0204-108, as amended, was 
rescinded and subsequently replaced by Delegation Orders 00-037.00 
(December 6, 2001) and 00-001-00B (July 28, 2005). The Deputy Secretary 
issued this rate order pursuant to said delegations.

Background

    The Sam Rayburn Dam Project (Rayburn) is located on the Angelina 
River in the State of Texas in the Neches River Basin. Since the 
beginning of its operation in 1965, it has been marketed as an isolated 
project, under contract with Sam Rayburn Dam Electric Cooperative, Inc. 
(SRDEC) (Contract No. DE-PM75-92SW00215). SRDEC is comprised of two 
separate entities, the Sam Rayburn G&T, and the Sam Rayburn Municipal 
Power Agency.
    This rate supersedes the annual rate of $2,513,700 which was 
confirmed, approved and placed in effect on an interim basis by the 
Deputy Secretary of Energy on November 16, 2004, for the period January 
1, 2005, through September 30, 2008. This rate has not yet been 
approved on a final basis by the Federal Energy Regulatory Commission 
(FERC).

Discussion

    Southwestern's 2005 Current Power Repayment Study (PRS) indicates 
that the existing annual power rate of $2,513,700 does not represent 
the lowest possible rate needed to meet cost recovery criteria. The 
increased revenue requirement is due to an increase in the U.S. Army 
Corps of Engineers (Corps) projected future replacement investment and 
future operations and maintenance expense estimates. The Revised PRS 
indicates that an increase in annual revenues of $302,364 beginning 
January 1, 2006, is sufficient to accomplish repayment of the Federal 
investment in the required number of years. Accordingly, Southwestern 
developed a proposed rate schedule based on that increased revenue 
requirement.
    Title 10, Part 903, Subpart A of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustment,'' has been followed in connection with the proposed rate 
adjustment. More specifically, opportunities for public review and 
comment during a 90-day period on the proposed Rayburn power rate were 
announced by a Federal Register (70 FR 51034) notice published on 
August 29, 2005. A Public Information Forum was scheduled to be held 
September 13, 2005, and a Public Comment Forum was scheduled for 
October 13, 2005, both in Tulsa, Oklahoma. Both forums were canceled as 
no one expressed an intent to participate. Written comments were due by 
November 28, 2005. Southwestern provided the Federal Register notice, 
together with requested supporting data, to the customer and interested 
parties for review and comment during the formal period of public 
participation. In addition, prior to the formal 90-day public 
participation process, Southwestern discussed with the customer 
representatives the preliminary information on the proposed rate 
adjustment. Only one formal comment was received from Gillis & Angley, 
Counsellors at Law, on behalf of Sam Rayburn Municipal Power Agency (an 
entity of Sam Rayburn Dam Electric Cooperative, Inc.), which stated 
that they had no objection to the proposed rate adjustment.
    Upon conclusion of the comment period in November 2005, 
Southwestern finalized the PRS and rate schedule for the proposed 
annual rate of $2,816,064, which is the lowest possible rate needed to 
satisfy repayment criteria. This rate represents an annual increase of 
12 percent.

[[Page 1533]]

Availability of Information

    Information regarding this rate increase, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.

Comments and Responses

    Southwestern received one written comment in which the customer 
representative expressed no objection to the proposed rate adjustment.

Other Issues

    There were no other issues raised during the informal period or 
during the formal public participation period.

Administrator's Certification

    The 2005 Revised Rayburn PRS indicates that the annual power rate 
of $2,816,064 will repay all costs of the project, including 
amortization of the power investment consistent with provisions of the 
Department of Energy (DOE) Order No. RA 6120.2. In accordance with 
Delegation Order Nos. 00-037.00 (December 6, 2001) and 00-001.00B (July 
28, 2005), and Section 5 of the Flood Control Act of 1944, the 
Administrator has determined that the proposed Rayburn power rate is 
consistent with applicable law and the lowest possible rate consistent 
with sound business principles.

Environment

    The environmental impact of the rate increase proposal was 
evaluated in consideration of DOE's guidelines for implementing the 
procedural provisions of the National Environmental Policy Act, 10 CFR 
1021, and was determined to fall within the class of actions that are 
categorically excluded from the requirements of preparing either an 
Environmental Impact Statement or an Environmental Assessment.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me, I hereby confirm, approve and place in effect on an interim basis, 
for the period January 1, 2006, through September 30, 2009, the annual 
Sam Rayburn Dam Rate of $2,816,064 for the sale of power and energy 
from Sam Rayburn Dam to the Sam Rayburn Electric Cooperative, Inc., 
under Contract No. DE-PM75-92SW00215, dated October 7, 1992.
    This rate shall remain in effect on an interim basis through 
September 30, 2009, or until the FERC confirms and approves the rate on 
a final basis.

    Dated: December 23, 2005.
Clay Sell,
Deputy Secretary.
[FR Doc. E6-108 Filed 1-9-06; 8:45 am]
BILLING CODE 6450-01-P