[Federal Register Volume 72, Number 99 (Wednesday, May 23, 2007)]
[Notices]
[Pages 28963-28964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9903]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam 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 2007 Power Repayment 
Studies that show the need for an increase in annual revenues to meet 
cost recovery criteria. Such increased revenues are required due to 
significant increases in expected U.S. Army Corps of Engineers' 
generation investment expenses at the project. The Administrator has 
developed a proposed Sam Rayburn Dam rate schedule, which is supported 
by a power repayment study, to recover the required revenues. Beginning 
October 1, 2007, the proposed rate would increase annual revenues 22.8 
percent from $2,816,064 to $3,458,124.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register notice and will end August 21, 
2007. A combined Public Information and Comment Forum will be held in 
Tulsa, Oklahoma at 1 p.m. central time on June 27, 2007.

ADDRESSES: If forums are requested, they will be held in Southwestern's 
offices, Williams Center Tower I, One West Third Street, Tulsa, 
Oklahoma 74103.

FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma 74103, (918) 595-6690, [email protected].

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, in the Department of Energy Organization 
Act, Pub. L. No. 95-91, dated August 4, 1977. Southwestern's power 
marketing activities were transferred from the Department of Interior 
to the Department of Energy, effective October 1, 1977. Guidelines for 
preparation of power repayment studies 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 as well as Kansas and Louisiana. 
The costs associated with the hydropower facilities of 22 of the 24 
projects are repaid via revenues

[[Page 28964]]

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. The Sam Rayburn Dam project is addressed in this notice.
    Following Department of Energy guidelines, the Administrator, 
Southwestern, prepared a Current Power Repayment study using the 
existing Sam Rayburn Dam 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 an increase in expected power-related generation investment 
expenses. The Revised Power Repayment Study shows that an increase in 
annual revenue of $642,060 (22.8 percent increase), beginning October 
1, 2007, is needed to satisfy repayment criteria.
    Opportunity is presented for Southwestern customers and other 
interested parties to receive copies of the Sam Rayburn Dam Power 
Repayment Studies and the proposed rate schedule. Persons desiring a 
copy of the Power Repayment Data Package with the proposed Rate 
Schedule should submit a request to the Director, Resources and Rates, 
Office of Corporate Operations, Southwestern Power Administration, One 
West Third Street, Tulsa, OK 74103, (918) 595-6680 or via e-mail to 
[email protected].
    A Public Information and Comment Forum (Forum) is scheduled to be 
held on June 27, 2007, 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 (918-595-6656) by 
June 19, 2007, their intent to appear at such Forum. Should no one 
indicate 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 (918-595-6656) 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 Sam Rayburn Dam Rate are due on or 
before August 21, 2007. Five copies of the written comments, together 
with a diskette in MS Word, should be submitted to James K. McDonald, 
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 Sam Rayburn Dam 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: May 14, 2007
Michael A. Deihl,
Administrator.
[FR Doc. E7-9903 Filed 5-22-07; 8:45 am]
BILLING CODE 6450-01-P