[Federal Register Volume 71, Number 63 (Monday, April 3, 2006)]
[Notices]
[Pages 16572-16573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4777]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Customer Service Region-Rate Order No. WAPA-129

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 Parker-Davis Project (P-DP) 
and Pacific Northwest-Pacific Southwest Intertie Project (Intertie) and 
ancillary services for the Western Area Lower Colorado (WALC) control 
area through September 30, 2006. The

[[Page 16573]]

additional time is needed to accommodate changes in methodology due to 
recent events in the industry.

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: By Delegation Order No. 00-037.00 approved 
December 6, 2001, the Secretary delegated: (1) The authority to develop 
power and transmission rates on a nonexclusive basis to the 
Administrator of the Western Area Power Administration (Western); (2) 
the authority to confirm, approve, and place such rates into effect on 
an interim basis to the Deputy Secretary; and (3) the authority to 
confirm, approve, and place into effect on a final basis, to remand, or 
to disapprove such rates to the Federal Energy Regulatory Commission 
(Commission).
    Pursuant to applicable Delegation Orders and existing Department of 
Energy (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 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 into effect on a final basis rate 
schedules for transmission and ancillary services from Western's DSW. 
Rate Order No. WAPA-84 was approved for a 5-year period, beginning 
April 1, 1999, and ending March 31, 2004. These rate schedules were 
extended by a series of Rate Orders through March 31, 2006, with the 
most recent Rate Order being Rate Order No. WAPA-121 (70 FR 15622, 
March 28, 2005).
    Western entered into a rate adjustment process with a Federal 
Register notice published on October 12, 2005, beginning a public 
consultation and comment period that ended on January 10, 2006. The 
enactment of the Energy Policy Act of 2005, issues arising out of the 
Commission's implementation of that Act, and a recently proposed 
revision to the transmission revenue requirement for a separate Western 
project caused a reassessment of the proposed rates as presented in the 
public process. Western believes that the additional time afforded by 
extending the date for expiration of the network integration 
transmission and ancillary services will allow Western to validate 
these rate designs. Western's existing formulary network integration 
transmission and ancillary service schedules, which are recalculated 
annually, will sufficiently recover project expenses (including 
interest) and capital requirements through September 30, 2006.
    Following review of Western's proposal within the DOE, I approve 
Rate Order No. WAPA-129, which extends the existing Network Integration 
Transmission and Ancillary Services Rates through September 30, 2006, 
or until superseded.

    Dated: March 22, 2006.
Clay Sell,
Deputy Secretary.

Deputy Secretary

In the Matter of: Western Area Power Administration; Extension of the 
Network Integration; Transmission and Ancillary Service Rates; 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.
    By Delegation Order No. 00-037.00 approved December 6, 2001, the 
Secretary delegated: (1) The authority to develop power and 
transmission rates on a non-exclusive basis to the Administrator of the 
Western Area Power Administration (Western); (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand, or to disapprove such 
rates to the Federal Energy Regulatory Commission (Commission).

Background

    The existing rate, Rate Order No. WAPA-84, was approved for 5 
years, beginning April 1, 1999, and ending March 31, 2004. These rate 
schedules were extended by a series of Rate Orders through March 31, 
2006, with the most recent Rate being Rate Order No. WAPA-121 (70 FR 
15622, March 28, 2005).

Discussion

    Western entered into a rate adjustment process with a Federal 
Register notice published on October 12, 2005, beginning a public 
consultation and comment period that ended on January 10, 2006. The 
enactment of the Energy Policy Act of 2005, issues arising out of the 
Commission's implementation of that Act, and a recently proposed 
revision to the transmission revenue requirement for a separate Western 
project caused a reassessment of the proposed rates as presented in the 
public process. Western believes that the additional time afforded by 
extending the date for the expiration of the network integration 
transmission and ancillary services will allow Western to validate 
these rate designs.
    Therefore, time requirements make it necessary to extend the 
current rates pursuant to 10 CFR part 903.23(b). Upon its approval, 
Rate Order No. WAPA-121 will be extended under Rate Order No. WAPA-129.

Order

    In view of the above and under the authority delegated to me by the 
Secretary, I hereby extend for a period effective from April 1, 2006 
and ending September 30, 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. These rates shall remain in effect through September 30, 
2006, or until superseded.

    Dated: March 22, 2006.
Clay Sell,
Deputy Secretary.
[FR Doc. E6-4777 Filed 3-31-06; 8:45 am]
BILLING CODE 6450-01-P