[Federal Register Volume 72, Number 186 (Wednesday, September 26, 2007)]
[Notices]
[Pages 54652-54654]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18950]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Power Rate Schedule

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective 
December 6, 2001, and 00-001.00C, effective January 31, 2007, the 
Deputy Secretary of Energy has approved and placed into effect on an 
interim basis Rate Order No. SWPA-58, which increases the power rate 
for the Sam Rayburn Dam (Rayburn) pursuant to the following Sam Rayburn 
Dam Rate Schedule:

    Rate Schedule SRD-07, Wholesale Rates for Hydropower and Energy 
Sold to Sam Rayburn Dam Electric Cooperative, Inc., (Contract No. 
DE-PM75-92SW00215).


DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-58 is October 1, 2007, through September 30, 2011.

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

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for 
Rayburn is $2,816,064 per year. The Federal Energy Regulatory 
Commission approved this rate on a final basis on June 15, 2006, for 
the period January 1, 2006, through September 30, 2009. The 2007 
Rayburn Power Repayment Studies indicates the need for an increase in 
the annual rate by $640,632 or 22.8 percent beginning October 1, 2007.
    The Administrator, Southwestern Power Administration (Southwestern) 
has followed Title 10, Part 903 Subpart A, of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' in connection with the 
proposed rate schedule. On May 23, 2007, Southwestern published notice 
in the Federal Register (72 FR 28963) of a 90-day comment period, 
together with a Public Information and Comment Forum, to provide an 
opportunity for customers and other interested members of the public to 
review and comment on a proposed rate increase for Rayburn. The public 
forum was canceled when no one expressed an intention to

[[Page 54653]]

participate. Written comments were accepted through August 21, 2007. 
One comment was received from Gillis & Angley, LLP, Counsellors at Law, 
on behalf of Sam Rayburn Municipal Power Authority, the Vinton Public 
Power Authority, and the Sam Rayburn Dam Electric Cooperative, which 
stated that they had no objection to the proposed rate adjustment.
    Information regarding this rate proposal, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved Rate Order No. SWPA-58, on an interim basis, 
which increases the existing Rayburn rate to $3,456,696, per year, for 
the period October 1, 2007, through September 30, 2011.

    Dated: September 13, 2007.
Clay Sell,
Deputy Secretary of Energy.

United States of America, Department of Energy, Deputy Secretary of 
Energy

[Rate Order No. SWPA-58]

In the Matter of: Southwestern Power Administration; Sam Rayburn Dam 
Project Rate; Order Confirming, Approving and Placing Increased Power 
Rate Schedule in Effect on an Interim Basis

    Pursuant to sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern 
Power Administration (Southwestern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 0204-108, effective 
December 14, 1983, the Secretary of Energy delegated to the 
Administrator of Southwestern the authority to develop power and 
transmission rates, delegated to the Deputy Secretary of Energy the 
authority to confirm, approve, and place in effect such rates on an 
interim basis, and delegated to the Federal Energy Regulatory 
Commission (FERC) the authority to confirm and approve and place in to 
effect on a final basis or to disapprove rates developed by the 
Administrator under the delegation. Delegation Order No. 0204-108, as 
amended, was rescinded and subsequently replaced by Delegation Orders 
00-037.00 (December 6, 2001) and 00-001-00C (January 31, 2007). The 
Deputy Secretary of Energy issued this rate order pursuant to said 
delegations.

Background

    The Sam Rayburn Dam (Rayburn) is located on the Angelina River in 
the State of Texas in the Neches River Basin. Since the beginning of 
its operation in 1965, it has been marketed as an isolated project, 
under contract with Sam Rayburn Dam Electric Cooperative, Inc. (SRDEC) 
(Contract No. DE-PM75-92SW00215). SRDEC is comprised of two separate 
entities, the Sam Rayburn G&T, and the Sam Rayburn Municipal Power 
Agency.
    On June 15, 2006, in Docket No. EF06-4021-000, FERC confirmed and 
approved the current annual Rayburn rate of $2,816,064 for the period 
January 1, 2006, through September 30, 2009.

Discussion

    Southwestern's 2007 Current Power Repayment Study (PRS) indicates 
that the existing annual power rate of $2,816,064 does not meet cost 
recovery criteria. The increased revenue requirement is due to an 
increase in the U.S. Army Corps of Engineers projected future 
replacement investment. The Revised PRS indicates that an increase in 
annual revenues of $640,632 beginning October 1, 2007, is sufficient to 
accomplish repayment of the Federal investment in the required number 
of years. Accordingly, Southwestern developed a proposed rate schedule 
based on that increased revenue requirement.
    Title 10, Part 903, Subpart A of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustments and Extensions,'' has been followed in connection with the 
proposed rate adjustment. More specifically, opportunities for public 
review and comment during a 90-day period on the proposed Rayburn power 
rate were announced by a Federal Register (72 FR 28963) notice 
published on May 23, 2007. A Public Information and Comment Forum was 
scheduled to be held June 27, 2007, in Tulsa, Oklahoma. The forum was 
canceled as no one expressed an intention to participate. Written 
comments were due by August 21, 2007. Southwestern provided the Federal 
Register notice, together with requested supporting data, to the 
customer and interested parties for review and comment during the 
formal period of public participation. In addition, prior to the formal 
90-day public participation process, Southwestern discussed with the 
customer representatives the preliminary information on the proposed 
rate adjustment. Only one formal comment was received from Gillis & 
Angley, LLP, Counsellors at Law, on behalf of Sam Rayburn Municipal 
Power Agency, Vinton Public Power Authority, and the Sam Rayburn Dam 
Electric Cooperative, Inc., which stated that they had no objection to 
the proposed rate adjustment.
    Upon conclusion of the comment period in August 2007, Southwestern 
finalized the PRS and rate schedule for the proposed annual rate of 
$3,456,696, which is the lowest possible rate needed to satisfy 
repayment criteria. This rate represents an annual increase of 22.8 
percent.

Availability of Information

    Information regarding this rate increase, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.

Comments and Responses

    Southwestern received one written comment in which the customer 
representative expressed no objection to the proposed rate adjustment.

Other Issues

    There were no other issues raised during the informal period or 
during the formal public participation period.

Administrator's Certification

    The 2007 Revised Rayburn PRS indicates that the annual power rate 
of $3,456,696 will repay all costs of the project, including 
amortization of the power investment consistent with provisions of the 
DOE Order RA 6120.2. In accordance with Delegation Order Nos. 00-037.00 
(December 6, 2001) and 00-001.00C (January 31, 2007), and section 5 of 
the Flood Control Act of 1944, the Administrator has determined that 
the proposed Rayburn power rate is consistent with applicable law and 
the lowest possible rate consistent with sound business principles.

Environment

    The environmental impact of the rate increase proposal was 
evaluated in consideration of DOE's guidelines for implementing the 
procedural provisions of the National Environmental Policy Act, (10 CFR 
Part 1021, Subpart D, App. B4.3), and was determined to fall within the 
class of actions that are categorically excluded from the requirements 
of preparing either an Environmental Impact Statement or an 
Environmental Assessment.

[[Page 54654]]

Order

    In view of the foregoing and pursuant to the authority delegated to 
me, I hereby confirm, approve and place in effect on an interim basis, 
for the period October 1, 2007, through September 30, 2011, the annual 
Sam Rayburn Dam rate of $3,456,696 for the sale of power and energy 
from Sam Rayburn Dam to the Sam Rayburn Dam Electric Cooperative, Inc., 
under Contract No. DE-PM75-92SW00215, dated October 7, 1992.
    This rate shall remain in effect on an interim basis through 
September 30, 2011, or until the FERC confirms and approves the rate on 
a final basis.

Dated: September 13, 2007.

Clay Sell,

Deputy Secretary of Energy.

United States Department of Energy; Southwestern Power Administration

[Rate Schedule SRD-07]
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    \*\ Supersedes Rate Schedule SRD-05.

Wholesale Rates for Hydro Power and Energy Sold to Sam Rayburn Dam 
Electric Cooperative, Inc. (Contract No. DE-PM75-92SW00215)

Effective

    During the period October 1, 2007, through September 30, 2011, in 
accordance with Rate Order No. 58, issued by the Deputy Secretary of 
Energy on September 13, 2007.

Applicable

    To the power and energy purchased by Sam Rayburn Dam Electric 
Cooperative, Inc. (SRDEC) from the Southwestern Power Administration 
(Southwestern) under the terms and conditions of the Power Sales 
Contract dated October 7, 1992, for the sale of all Hydro Power and 
Energy generated at the Sam Rayburn Dam.

Character and Conditions of Service

    Three-phase alternating current, delivered at approximately 60 
hertz, at the nominal voltage and point of delivery, and in such 
quantities as provided by contract.

Monthly Rates

    SRDEC shall compensate Southwestern for Sam Rayburn Dam Hydro Power 
and Energy purchased by SRDEC, in the amount of $288,058 per month 
($3,456,696 per year).
    The preceding rate shall be applicable regardless of the quantity 
of Hydro Power and Energy available or delivered to SRDEC; provided, 
however, that if an ``Uncontrollable Force'' prevents utilization of 
both of the project's power generating units for an entire billing 
period, and if during such billing period water releases were being 
made which otherwise would have been used to generate Hydro Power and 
Energy, then Southwestern shall, upon request by SRDEC, suspend billing 
for subsequent billing periods, until such time as at least one of the 
project's generating units is again available.
[FR Doc. E7-18950 Filed 9-25-07; 8:45 am]
BILLING CODE 6450-01-P