[Federal Register Volume 73, Number 71 (Friday, April 11, 2008)]
[Notices]
[Pages 19832-19833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-7761]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Cumberland System of Projects

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of proposed rates, public forum, and opportunities for 
public review and comment.

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SUMMARY: Southeastern Power Administration (Southeastern) proposes to 
revise existing schedules of rates and charges applicable to the sale 
of power from the Cumberland System of Projects effective for a 5-year 
period, October 1, 2008, through September 30, 2013. 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 July 10, 2008. A public 
information and comment forum will be held at 10 a.m., May 22, 2008. 
Persons desiring to speak at the forum should notify Southeastern at 
least three (3) days before the forum is scheduled, so that a list of 
forum participants can be prepared. Others may speak if time permits.

ADDRESSES: The forum will be held at the Holiday Inn Express, 920 
Broadway, Nashville, Tennessee 37203, phone (615) 244-0150. 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: J. W. Smith, Southeastern Power 
Administration, Department of Energy, 1166 Athens Tech Road, Elberton, 
Georgia 30635, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy confirmed and 
approved on an interim basis on February 20, 2008, Wholesale Power Rate 
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 
September 30, 2008. Final approval by the Federal Energy Regulatory 
Commission (FERC) is pending.
    Discussion: The marketing policy for the Cumberland System of 
Projects provides peaking capacity, along with 1500 hours of energy 
annually with each kilowatt of capacity, to customers outside the 
Tennessee Valley Authority (TVA) transmission system. 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 failure of the 
dam, Southeastern is not able to provide peaking capacity to these 
customers. Southeastern implemented an interim operating plan for the 
Cumberland System to provide these customers with energy that did not 
include capacity. Because previous rate schedules recovered all costs 
from capacity and excess energy, Southeastern developed the interim 
rate schedules to recover costs under the interim operating plan. The 
interim rate schedules were approved by the Administrator under the 
Administrator's authority to develop and place into effect on a final 
basis rates for short-term sales of capacity, energy, or transmission 
service effective February 25, 2007. On February 20, 2008, the Deputy 
Secretary of Energy approved an extension of the interim rate schedules 
for a period from February 25, 2008 to September 30, 2008. The rate 
schedules have been forwarded to FERC with a request for approval on a 
final basis. An updated study, dated February 2008, shows that existing 
rates are adequate to recover all costs required by present repayment 
criteria.
    Southeastern is proposing to include $19.7 million of replacements 
per year from FY 2008 to FY 2028, for a total of $394 million. 
Including this $394 million, the existing rates are not adequate to 
recover all costs. A revised repayment study with a revenue increase of 
$6,036,000 over the current study demonstrates that rates would be 
adequate to meet repayment criteria. The total revenue requirement is 
$52,350,000. The additional revenue requirement amounts to a 13 percent 
increase in revenues.
    Southeastern is including three rate alternatives per rate 
schedule. All of the rate alternatives have a revenue requirement of 
$52,350,000, which includes the $6,036,000 increase in revenue.
    The first set includes the rates necessary to recover costs under 
the interim operating plan. These rates are based on energy. The rate 
is 13.29 mills per kilowatt-hour for all Cumberland energy. The 
customers will pay a ratable share of the transmission credit the 
Administrator of Southeastern Power Administration (Administrator) 
provides the Tennessee Valley Authority (TVA) as consideration for 
delivering capacity and energy for the account of the Administrator to 
points of delivery of Other Customers or interconnection points of 
delivery with other electric systems for the benefit of Other 
Customers, as agreed by contract between the Administrator and TVA. 
This rate will remain in effect as long as Southeastern is unable to 
provide capacity due to the Corps' imposed restrictions on the 
operation of the Wolf Creek Project.
    The second rate alternative will recover cost from capacity and 
energy. This will be in effect once the Corps raises the lake level at 
the Wolf Creek Project. When the lake level rises and capacity is 
available, the capacity will be allocated to the customers.
    The third rate alternative is based on the original Cumberland 
Marketing Policy. All costs are recovered from capacity and excess 
energy. The rates under this alternative are as follows:

                         Cumberland System Rates
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TVA:
    Capacity.................   $1.996 per kw/month.
     Additional Energy.......   11.048 mills per kwh.
Outside Preference Customers
 (Excluding Customers served
 through Carolina Power &
 Light Company):
     Capacity................   $3.462 per kw/month.
     Energy..................   11.048 mills per kwh.
 Customers Served through
 Carolina Power & Light
 Company, Western Division:
     Capacity................   $3.940 per kw/month.
     Transmission............   $1.1522 per kw/month.
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[[Page 19833]]

    These rates will go into effect once the Corps lifts the 
restrictions on the operation of the Wolf Creek Dam and the interim 
operating plan becomes unnecessary.
    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, Georgia 30635-6711. The Proposed Rate 
Schedules CBR-1-G, CSI-1-G, CEK-1-G, CM-1-G, CC-1-H, CK-1-G, and CTV-1-
G are also available.

    Dated: March 31, 2008.
Leon Jourolmon,
Acting Administrator.
 [FR Doc. E8-7761 Filed 4-10-08; 8:45 am]
BILLING CODE 6450-01-P