[Federal Register Volume 73, Number 22 (Friday, February 1, 2008)]
[Notices]
[Pages 6177-6178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1872]


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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, 2008, under Rate Schedule BCP-F7. The current base charge is not 
sufficient to cover 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 cover 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 2008. The proposed base charge and rates are 
scheduled to become effective on October 1, 2008, and will remain in 
effect through September 30, 2009. 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 1, 2008. Western will present a detailed explanation of the 
proposed base charge and rates at a public information forum on April 
2, 2008, beginning at 10:30 a.m. MST, in Phoenix, AZ. Western will 
accept oral and written comments at a public comment forum on April 23, 
2008, 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 public information forum and public comment forum will 
be held at the Desert Southwest Customer Service Regional Office, 
located at 615 South 43rd Avenue, Phoenix, AZ, on the dates cited 
above. 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, fax, 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, (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. The base charge for FY 2009 is 
$71,211,438, the forecasted energy rate is 8.74 mills per kilowatthour 
(mills/kWh), the forecasted capacity rate is $1.77 per kilowattmonth 
(kWmonth), and the composite rate is 17.49 mills/kWh.
    Under Rate Schedule BCP-F7, the proposed rates for BCP electric 
service will result in an overall composite rate decrease of about one 
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,
                                                        2007  through            2008  through         % Change
                                                      September 30, 2008       September 30, 2009
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Composite Rate (mills/kWh).......................                    17.64                    17.49           -1
Base Charge ($)..................................               66,975,283               71,211,438            6
Energy Rate (mills/kWh)..........................                     8.82                     8.74           -1
Capacity Rate ($/kWmonth)........................                     1.63                     1.77            9
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    The increase in the electric service base charge and capacity rate 
is primarily the result of projecting no year-end carryover from FY 
2008 into FY 2009. Initial analysis of the projected financial data for 
FY 2009 reflects a

[[Page 6178]]

slight decrease in overall annual costs and a slight increase in other 
revenues when compared to FY 2008. However, since there is no projected 
year-end carryover into FY 2009 the result is an overall increase in 
the base charge for FY 2009. Another factor contributing to the 
increase in the capacity rate is the decrease in capacity sales 
associated with lower Lake Mead water elevations. The decrease in the 
composite and energy rates is due to a slight increase in the FY 2009 
energy sales from FY 2008.

Legal Authority

    Western will hold both a public information forum and a public 
comment forum. After review of public comments and possible amendments 
or adjustments, Western will recommend the Deputy Secretary of Energy 
approve the proposed base charge and rates on a final basis.
    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

    All brochures, studies, comments, letters, memorandums or other 
documents that Western initiates or uses to develop the proposed rates 
are available for inspection and copying at the Desert Southwest 
Customer Service Regional Office, Western Area Power Administration, 
located at 615 South 43rd Avenue, Phoenix, AZ. Many of these documents 
and supporting information are also available on Western's Web site at 
http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm.

Ratemaking Procedure Requirements

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 for implementing NEPA (40 CFR parts 1500-1508), and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western 
has determined 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.

    Dated: January 10, 2008.
Timothy J. Meeks,
Administrator.
[FR Doc. E8-1872 Filed 1-31-08; 8:45 am]
BILLING CODE 6450-01-P