[Federal Register Volume 72, Number 30 (Wednesday, February 14, 2007)]
[Notices]
[Pages 7026-7027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-2527]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Base Charge and Rates Adjustment.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
an adjustment to the Boulder Canyon Project (BCP) electric service base 
charge and rates. The current base charge and rates expire September 
30, 2007. The current base charge is not sufficient to pay all annual 
costs including operation, maintenance, replacements, and interest 
expense, and to repay investment obligations within the required 
period. The proposed base charge will provide sufficient revenue to pay 
all annual costs and to repay investment obligations within the 
allowable period. A detailed rate package that identifies the reasons 
for the base charge and rates adjustment will be available in March 
2007. The proposed base charge and rates are scheduled to become 
effective on October 1, 2007, and will remain in effect through 
September 30, 2008. This Federal Register notice initiates the formal 
process for the proposed base charge and rates.

DATES: The consultation and comment period will begin today and will 
end May 15, 2007. Western representatives will explain the proposed 
base charge and rates at a public information forum on April 11, 2007, 
beginning at 10:30 a.m. MST, in Phoenix, Arizona (AZ). Interested 
parties can provide oral and written comments at a public comment forum 
on May 9, 2007, beginning at 10:30 a.m. MST, at the same location. 
Western will accept written comments any time during the consultation 
and comment period.

ADDRESSES: The meetings will be held at the Desert Southwest Customer 
Service Regional Office, located at 615 South 43rd Avenue, Phoenix, AZ. 
Send written comments to: 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]. 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/BCP/RateAdjust.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.
    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 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: The proposed base charge and rates for BCP 
electric service are designed to recover an annual revenue requirement 
that includes the investment repayment, interest, operation and 
maintenance, replacements, payment to states, visitor services, and 
uprating payments. The total costs are offset by the projected revenue 
from water sales, visitor services, water pumping energy sales, 
facilities use charges, regulation and spinning reserve services, 
miscellaneous leases, and late fees. The projected annual revenue 
requirement is the base charge for electric service and is divided 
equally between capacity dollars and energy dollars. Annual energy 
dollars are divided by annual energy sales, and annual capacity dollars 
are divided by annual capacity sales to determine the proposed energy 
rate and the proposed capacity rate.
    The Deputy Secretary of Energy approved the existing rate formula 
for calculating the base charge and rates in Rate Schedule BCP-F7 for 
BCP electric service on August 11, 2005, (Rate Order No. WAPA-120, 70 
FR 50316, August 26, 2005). The Federal Energy Regulatory Commission 
(Commission) confirmed and approved the rate formula on a final basis 
in Docket No. EF05-5091-000 issued June 22, 2006 (115 FERC ] 61,362). 
Rate Schedule BCP-F7 became effective on October 1, 2005, for the 
period ending September 30, 2010. Under Rate Schedule BCP-F7, for FY 
2008, the base charge is $74,898,171, the forecasted energy rate is 
9.33 mills per kilowatthour (mills/kWh), the forecasted capacity rate 
is $1.81 per kilowattmonth (kWmonth), and the composite rate is 18.65 
mills/kWh.
    Under Rate Schedule BCP-F7, the proposed rates for BCP electric 
service will result in an overall composite rate increase of about 10 
percent. The following table compares the current and proposed base 
charge and rates.

                            Comparison of Current and Proposed Base Charge and Rates
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                                                          Current October 1,    Proposed October 1,
                                                             2006 through          2007 through        % Change
                                                          September 30, 2007    September 30, 2008     Increase
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Total Composite (mills/kWh)............................                 17.02                 18.65           10
Base Charge ($)........................................            67,509,136            74,898,171           11
Energy Rate (mills/kWh)................................                  8.51                  9.33           10
Capacity Rate ($/kWmonth)..............................                  1.63                  1.81           11
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    The increase in the electric service base charge and rates is 
primarily the result of higher annual costs associated with operation 
and maintenance, visitor services, uprating program payments, 
replacements, and no increase in revenue projections for the visitor 
services.

[[Page 7027]]

Legal Authority

    Western will hold both a public information forum and a public 
comment forum. After considering comments, Western will recommend the 
proposed base charge and rates for final approval by the Deputy 
Secretary of Energy.
    Western is establishing an electric service base charge and rates 
for BCP 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 rate adjustments (10 
CFR part 903) were published on September 18, 1985.

Availability of Information

    Interested parties may review and copy all brochures, studies, 
comments, letters, memorandums or other documents that Western 
initiates or uses to develop the proposed rates. These documents are at 
the Desert Southwest Customer Service Regional Office, located at 615 
South 43rd Avenue, Phoenix, AZ. Many of these documents and supporting 
information are also available on its Web site located at http://www.wapa.gov/dsw/pwrmkt/BCP/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 
specifically 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 (40 CFR parts 1500-1508); and DOE NEPA Implementing 
Procedures and Guidelines (10 CFR part 1021), Western has determined 
that 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: January 26, 2007.
Timothy J. Meeks,
Administrator.
[FR Doc. E7-2527 Filed 2-13-07; 8:45 am]
BILLING CODE 6450-01-P