[Federal Register Volume 71, Number 154 (Thursday, August 10, 2006)]
[Notices]
[Page 45820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13030]



[[Page 45820]]

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DEPARTMENT OF ENERGY

Southwestern Power Administration


Robert D. Willis Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of public review and comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has prepared Current and Revised 2006 Power Repayment 
Studies (PRS) that show the need for an increase in annual revenues to 
meet cost recovery criteria. Such increased revenues are required 
primarily due to significant increases in U.S. Army Corps of Engineers' 
generation investment at the project. The Administrator has developed a 
proposed Robert D. Willis rate schedule, which is supported by a PRS, 
to recover the required revenues. Beginning January 1, 2007, the 
proposed rates would increase annual revenues approximately 25.8 
percent from $648,096 to $815,580.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register notice and will end October 10, 
2006. A combined Public Information and Comment Forum will be held in 
Tulsa, Oklahoma at 1 p.m. central time on September 14, 2006.

ADDRESSES: If the Forum is requested, it will be held in Southwestern's 
offices, Room 1402, Williams Center Tower I, One West Third Street, 
Tulsa, Oklahoma 74103.

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

SUPPLEMENTARY INFORMATION: The Department of Energy was created by an 
Act of the U.S. Congress, Department of Energy Organization Act, Pub. 
L. 95-91, dated August 4, 1977. Southwestern's power marketing 
activities were transferred from the Department of the Interior to the 
Department of Energy (DOE), effective October 1, 1977. Guidelines for 
preparation of the PRS are included in DOE Order No. RA 6120.2 entitled 
Power Marketing Administration Financial Reporting. Procedures for 
Public Participation in Power and Transmission Rate Adjustments of the 
Power Marketing Administrations are found at Title 10, part 903, 
Subpart A of the Code of Federal Regulations (10 CFR part 903). 
Procedures for the confirmation and approval of rates for the Federal 
Power Marketing Administrations are found at Title 18, part 300, 
Subpart L of the Code of Federal Regulations (18 CFR part 300).
    Southwestern markets power from 24 multi-purpose reservoir 
projects, with hydroelectric power facilities constructed and operated 
by the U.S. Army Corps of Engineers. These projects are located in the 
states of Arkansas, Missouri, Oklahoma, and Texas. Southwestern's 
marketing area includes these states plus Kansas and Louisiana. The 
costs associated with the hydropower facilities of 22 of the 24 
projects are repaid via revenues received under the Integrated System 
rates, as are Southwestern's transmission facilities that consist of 
1,380 miles of high-voltage transmission lines, 24 substations, and 46 
microwave and VHF radio sites. Costs associated with the Robert D. 
Willis and Sam Rayburn Dams, two projects that are isolated 
hydraulically, electrically, and financially from the Integrated System 
are repaid by separate rate schedules.
    Following DOE guidelines Southwestern's Administrator prepared a 
Current PRS using the existing Robert D. Willis rate. The Study 
indicates that Southwestern's legal requirement to repay the investment 
in the power generating facility for power and energy marketed by 
Southwestern will not be met without an increase in revenues. The need 
for increased revenues is due to significant increases in generation 
investment at the project. The Revised PRS shows that an increase in 
annual revenue of $167,484 (a 25.8 percent increase), beginning January 
1, 2007, is needed to satisfy repayment criteria.
    Opportunity is presented for Southwestern customers and other 
interested parties to receive copies of the Robert D. Willis Power 
Repayment Studies and the proposed rate schedule. If you desire a copy 
of the Robert D. Willis Power Repayment Data Package with the proposed 
Rate Schedule, submit your request to Mr. Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, One West Third Street, Tulsa, OK 74103, (918) 595-6696 
or via e-mail to [email protected].
    A Public Information and Comment Forum (Forum) is scheduled to be 
held on September 14, 2006, to explain to customers and interested 
parties the proposed rate and supporting studies. The proceeding will 
be transcribed, if held. A chairman, who will be responsible for 
orderly procedure, will conduct the Forum. Questions concerning the 
rate, studies, and information presented at the Forum will be answered, 
to the extent possible, at the Forum. Questions not answered at the 
Forum will be answered in writing. However, questions involving 
voluminous data contained in Southwestern's records may best be 
answered by consultation and review of pertinent records at 
Southwestern's offices.
    Persons interested in attending the Forum should indicate in 
writing by letter, email, or facsimile transmission (918-525-6656) by 
September 5, 2006, their intent to appear at such Forum. Should no one 
indicate an intent to attend by the above-cited deadline, no such Forum 
will be held.
    Persons interested in speaking at the Forum should indicate in 
writing by letter, email, or facsimile transmission (918-525-6656) at 
least seven (7) calendar days prior to the Forum so that a list of 
speakers can be developed. The chairman may allow others to speak if 
time permits.
    A transcript of the Forum will be made. Copies of the transcripts 
may be obtained directly from the transcribing service for a fee. 
Copies of all documents introduced will also be available from the 
transcribing service for a fee.
    Written comments on the proposed Robert D. Willis Rate are due on 
or before October 10, 2006. Five copies of the written comments, 
together with a diskette in MS Word or Corel Word Perfect, should be 
submitted to Forrest E. Reeves, Assistant Administrator, Southwestern 
Power Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma 74103.
    Following review of the oral and written comments and the 
information gathered during the course of the proceedings, the 
Administrator will submit the final Robert D. Willis Rate Proposal, and 
Power Repayment Studies in support of the proposed rate to the Deputy 
Secretary of Energy for confirmation and approval on an interim basis, 
and subsequently to the Federal Energy Regulatory Commission (FERC) for 
confirmation and approval on a final basis. The FERC will allow the 
public an opportunity to provide written comments on the proposed rate 
increase before making a final decision.

    Dated: July 27, 2006.
Michael A. Deihl,
Administrator.
[FR Doc. E6-13030 Filed 8-9-06; 8:45 am]
BILLING CODE 6450-01-P