[Federal Register Volume 72, Number 205 (Wednesday, October 24, 2007)]
[Notices]
[Pages 60356-60357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20950]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Cumberland System of Projects

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of proposed rate extension and opportunities for public 
review and comment.

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SUMMARY: Southeastern Power Administration (Southeastern) proposes to 
extend existing schedules of rates and charges applicable to the sale 
of power from the Cumberland System of Projects to be effective for 
approximately a seven-month period, from February 25, 2008 to September 
30, 2008. Additionally, opportunities will be available for interested 
persons to review the rates and supporting studies and to submit 
written comments. Southeastern will evaluate all comments received in 
this process.

DATES: Written comments are due on or before November 23, 2007.

ADDRESSES: Written comments should be submitted to: Administrator, 
Southeastern Power Administration, Department of Energy, 1166 Athens 
Tech Road, Elberton, GA 30635-6711.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance & Marketing, Southeastern Power Administration, 
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635, 
(706) 213-3800.

SUPPLEMENTARY INFORMATION: The Administrator, by order issued February 
28, 2007, confirmed and approved on a final basis Wholesale Power Rate

[[Page 60357]]

Schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-F, CC-1-G, CK-1-F, and CTV-1-
F applicable to Cumberland System of Projects power for a period ending 
February 24, 2008.
    Discussion: The marketing policy for the Cumberland System of 
Projects provides peaking capacity, along with 1500 hours of energy 
annually to some customers and 1800 hours of energy annually to other 
customers with each kilowatt of capacity, to customers outside the 
Tennessee Valley Authority (TVA) marketing area (Outside Customers). 
TVA also was allocated capacity but receives any energy not allocated 
to Outside Customers. The rates approved by the Federal Energy 
Regulatory Commission (the Commission) were designed to have a capacity 
charge that included 1500 hours of energy. In addition, the rates have 
an excess energy charge for energy in excess of the 1500 hours per 
kilowatt annually. Due to restrictions on the operation of the Wolf 
Creek Project imposed by the U.S. Army Corps of Engineers as a 
precaution to prevent a failure of the dam, Southeastern is not able to 
provide peaking capacity to these customers. Southeastern has 
implemented an interim operating plan for the Cumberland System to 
provide these customers with energy that does not include schedulable 
capacity. Because the rate design incorporated in the previous rate 
schedules recovered all costs from capacity and excess energy, the 
interim rate schedules are necessary to recover costs under the interim 
operating plan.
    The interim rate schedules superceded rate schedules approved on a 
final basis by the Commission on August 2, 2004 (108 FERC ]62,113). 
These rates were approved for a period from October 1, 2003 to 
September 30, 2008. The interim rate schedules were approved by the 
Administrator on a final basis, under his authority to develop and 
place into effect rates for short-term sales of capacity, energy, or 
transmission service.
    The existing interim rate schedules are based on a repayment study 
submitted to the Deputy Secretary on March 28, 2006. An updated study 
submitted to the Deputy Secretary on September 10, 2007, demonstrates 
that rates are adequate to meet repayment criteria as required by 
existing law and DOE Order RA 6120.2. Southeastern is proposing to 
extend the existing interim rate schedules for the period from February 
25, 2008 to September 30, 2008.
    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, Georgia 30635-6711. Interim Rate 
Schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-F, CC-1-G, CK-1-F, and CTV-1-
F are also available.

    Dated: October 15, 2007.
Jon C. Worthington,
Administrator.
 [FR Doc. E7-20950 Filed 10-23-07; 8:45 am]
BILLING CODE 6450-01-P