[Federal Register Volume 71, Number 133 (Wednesday, July 12, 2006)]
[Notices]
[Pages 39310-39311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10939]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pacific Northwest-Pacific Southwest Intertie Project--Rate Order 
No. WAPA-130

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Transmission Service Rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
adjustments to the Pacific Northwest-Pacific Southwest Intertie Project 
(Intertie) rates for firm transmission service on the 230/345-kilovolt 
(kV) transmission system, firm transmission service on the 500-kV 
transmission system, and nonfirm transmission service on the 230/345/
500-kV transmission system. The existing rates, under Rate Schedules 
INT-FT2, INT-FT3, and INT-NFT2, expire December 31, 2006. The 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. Western 
expects the proposed rates to go into effect on January 1, 2007, and 
remain in effect through December 31, 2011. 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 
October 10, 2006. Western will present a detailed explanation of the 
proposed rates at a public information forum on August 17, 2006, at 10 
a.m. MST in Phoenix, AZ. Western will accept oral and written comments 
at a public comment forum on August 24, 2006, at 10 a.m. MST in 
Phoenix, AZ. Western will accept written comments any time during the 
consultation and comment period.

ADDRESSES: The public information forum and public comment forum will 
be held at the Desert Southwest Region Customer Service Office, 615 
South 43rd Avenue, Phoenix, AZ, on the dates cited above. Send written 
comments to Mr. J. Tyler Carlson, Regional Manager, Desert Southwest 
Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 
85005-6457, e-mail [email protected]. Written comments may also be faxed 
to (602) 605-2490, attention: Jack Murray. Western will post 
information about the rate process on its Web site at http://www.wapa.gov/dsw/pwrmkt/Intertie/RateAdjust.htm. Western will post 
official comments received via letter, fax, 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.
    As access to Western facilities is controlled, any U.S. citizen 
wishing to attend any meeting held at Western must present an official 
form of picture identification, such as a U.S. driver's license, U.S. 
passport, U.S. Government ID, or U.S. Military ID, at the time of the 
meeting. Foreign nationals should contact Western at least 45 days in 
advance of the meeting to obtain the necessary form for admittance to 
Western.

FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Team Lead, 
Desert Southwest Region, Western Area Power Administration, P.O. Box 
6457, Phoenix, AZ 85005-6457; (602) 605-2442, e-mail [email protected].

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved Rate 
Schedules INT-FT2 and INT-NFT2 on January 31, 1996 (Rate Order No. 
WAPA-71, 61 FR 4651, February 7, 1996), and the Federal Energy 
Regulatory Commission (Commission) confirmed and approved the rate 
schedules on February 12, 1996, under FERC Docket No. EF96-5191-000. 
Rate Schedules INT-FT2 and INT-NFT2 became effective on February 1, 
1996, for a 53-month period ending September 30, 2000. These rate 
schedules were extended through December 31, 2003, with approval of 
Rate Order No. WAPA-91 by the Deputy Secretary of

[[Page 39311]]

Energy on August 15, 2000. These rate schedules were extended again 
through December 31, 2006, with approval of Rate Order No. WAPA-108 by 
the Deputy Secretary of Energy on October 27, 2003.
    The Deputy Secretary of Energy approved Rate Schedule INT-FT3 on 
January 28, 1999 (Rate Order No. WAPA-76, 64 FR 6344, February 9, 
1999), and the Commission confirmed and approved the rate schedule on 
June 22, 1999, under FERC Docket No. EF99-5191-000. Rate Schedule INT-
FT3 became effective on January 1, 1999, for a 5-year period ending 
December 31, 2003. This rate schedule was extended through December 31, 
2006, with approval of Rate Order No. WAPA-108 by the Deputy Secretary 
of Energy on October 27, 2003.
    Under Rate Schedule INT-FT2, the existing rate for Long-Term Firm 
and Short-Term Firm Point-to-Point 500-kV Transmission Service is 
$17.23 per kilowattyear (kWyear). The proposed rate for Long-Term Firm 
and Short-Term Firm Point-to-Point 500-kV Transmission Service is 
$21.96 per kWyear. Under Rate Schedule INT-FT3, the existing rate for 
Long-Term Firm and Short-Term Firm Point-to-Point 230/345-kV 
Transmission Service is $12.00 per kWyear. The proposed rate for Long-
Term Firm and Short-Term Firm Point-to-Point 230/345-kV Transmission 
Service is $15.36 per kWyear. Under Rate Schedule INT-NFT3, the 
existing rate for Nonfirm Point-to-Point 230/345/500-kV Transmission 
Service is 2.00 mills per kilowatthour (kWh). The proposed rate for 
Nonfirm Point-to-Point 230/345/500-kV Transmission Service is 2.50 
mills per kWh. The following table compares the existing and proposed 
rates for Intertie transmission service.

                         Comparison of Existing and Proposed Transmission Service Rates
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          Transmission service                  Existing rates              Proposed rates        Percent change
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230/345-kV Firm.........................  $12.00 kWyear.............  $15.36 kWyear.............            28.0
500-kV Firm.............................  $17.23 kWyear.............  $21.96 kWyear.............            27.5
230/345/500-kV Nonfirm..................  2.00 mills/kWh............  2.50 mills/kWh............            25.0
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    The proposed rates are expected to become effective January 1, 
2007, and remain in effect through December 31, 2011. The proposed 
rates are designed to recover an annual revenue requirement that 
includes operation and maintenance, purchase of transmission capacity, 
interest, other expenses, and investment repayment. The rate increase 
results primarily from increased operation and maintenance costs, 
interest expense, and repayment of capitalized expenses.

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 transmission service rates for the Intertie 
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 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 and transmission 
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 Desert Southwest 
Customer Service Regional Office, Western Area Power Administration, 
located at 615 South 43rd Avenue, Phoenix, AZ. Many of these documents 
and supporting information are also available on Western's Web site at: 
http://www.wapa.gov/dsw/pwrmkt/Intertie/RateAdjust.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.); the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE 
NEPA Implementing Procedures and Guidelines (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 28, 2006.
Michael S. Hacskaylo,
Administrator.
 [FR Doc. E6-10939 Filed 7-11-06; 8:45 am]
BILLING CODE 6450-01-P