[Federal Register Volume 73, Number 83 (Tuesday, April 29, 2008)]
[Notices]
[Pages 23248-23249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-9332]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project-Rate Order No. WAPA-138

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Formula Rates for Firm Electric and 
Transmission Service.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
modifications to the rate methodology used to develop Parker-Davis 
Project (P-DP) firm electric and transmission service formula rates. 
The modifications to the rate methodology will change the allocation 
factors used to apportion certain expenses between generation and 
transmission revenue requirements. The firm electric and transmission 
service rates resulting from the rate methodology modifications are 
equal to current rates and will provide sufficient revenue to pay all 
annual costs, including interest expense, and repayment of required 
investment within the allowable period. Western is also proposing 
changes to the current billing practices for P-DP long-term firm 
transmission service. Under the proposed billing changes, customers 
will be required to pay for long-term firm transmission service one 
month in advance of service. Western will prepare a brochure that 
provides detailed information on the modifications and proposed firm 
electric and transmission service formula rates. Current formula rates 
under Rate Schedules PD-F6, PD-FT6, PD-FCT6, and PD-NFT6 expire 
September 30, 2008. The proposed formula rates under Rate Schedules PD-
F7, PD-FT7, PD-FCT7, and PD-NFT7 are scheduled to become effective on 
October 1, 2008, and will remain in effect through September 30, 2013. 
Publication of this Federal Register notice begins the formal process 
for the proposed formula rates.

DATES: The consultation and comment period will begin today and will 
end May 29, 2008. Western will accept written comments any time during 
the consultation and comment period. The proposed action constitutes a 
minor rate adjustment as defined by 10 CFR part 903. As such, Western 
has determined it is not necessary to hold a public information or 
public comment forum.

ADDRESSES: 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/RateAdjust/Main.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.

FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602) 605-2442, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: Under the current rate methodology, formula 
rates for P-DP firm electric and transmission service are recalculated 
annually and designed to recover annual project costs, including 
interest expense, and make repayment of required investment within the 
allowable period. Costs that are readily identifiable as supporting 
either generation or transmission functions are directly allocated to 
generation or transmission revenue requirements. All other costs are 
apportioned between generation and transmission revenue requirements 
based on cost allocation factors. Current cost allocation factors 
include Supervisory Control and Data Acquisition, Capitalized Movable 
Equipment (CME), labor hours devoted to billing, and historic project 
investment. Western is proposing to modify the current rate methodology 
by eliminating the CME, labor hours devoted to billing, and historic 
project investment cost allocation factors. Western also proposes 
implementing a cost allocation factor that is the ratio of the number 
of customers receiving firm electric or transmission service to the 
total number of customers. At this time, the firm electric and 
transmission service rates resulting from the proposed modifications to 
the rate methodology are equal to current rates and will provide 
sufficient revenue to recover generation and transmission revenue 
requirements.
    During informal discussions prior to the commencement of this rate 
adjustment process, Western received a request from customers to modify 
the billing practices for P-DP long-term firm transmission service. In 
the request, the customers noted that payments for firm electric 
service are required one month in advance of service and suggested that 
all parties be subject to the same billing terms and conditions. 
Current billing practices for P-DP long-term firm transmission service 
allow customers to pay after the fact, usually one month after service 
is provided. In response to this request, Western is proposing changes 
to billing practices so that customers will be required to pay for P-DP 
long-term firm transmission service one month in advance of service. 
This requirement is incorporated into Rate Schedule PD-FT7.
    Rate Schedules PD-F6, PD-FT6, PD-FCT6, and PD-NFT6 were approved 
under Rate Order No. WAPA-75 for the period beginning November 1, 1997, 
and ending September 30, 2002.\1\ These rate schedules were extended 
through September 30, 2004, by the approval of Rate Order No. WAPA-98 
on September

[[Page 23249]]

13, 2002.\2\ These rate schedules were extended again through September 
30, 2006, by the approval of Rate Order No. WAPA-113 approved on 
September 2, 2004.\3\ These rate schedules were extended again through 
September 30, 2008, by Rate Order No. WAPA-131 approved on September 
22, 2006.\4\
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    \1\ WAPA-75 was approved by the Deputy Secretary of Energy on 
November 18, 1997 (62 FR 63150), and confirmed and approved by FERC 
on a final basis on March 10, 1998, in Docket No. EF98-5041-000 (82 
FERC 62164).
    \2\ WAPA-98 was approved by the Secretary of Energy on September 
13, 2002 (67 FR 60655), and filed with FERC for informational 
purposes only, and docketed by FERC on September 24, 2002, in Docket 
No. EF02-5041-000.
    \3\ WAPA-113 was approved by the Deputy Secretary of Energy on 
September 2, 2004 (69 FR 55429), and filed with FERC for 
informational purposes only, and docketed by FERC on September 3, 
2004, in Docket No. EF04-5042-000.
    \4\ WAPA-131 was approved by the Deputy Secretary of Energy on 
September 22, 2006 (71 FR 57941), and filed with FERC for 
informational purposes only, and docketed by FERC on September 22, 
2006, in Docket No. EF06-5042-000.
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Legal Authority

    The proposed modifications to the rate methodology described above 
constitutes a minor rate adjustment. Western has determined that it is 
not necessary to hold a public information or public comment forum for 
this proposed minor rate adjustment as defined by 10 CFR part 903. 
After review of public comments and possible amendments or adjustments, 
Western will recommend the Deputy Secretary of Energy approve the 
proposed formula rates on an interim basis.
    Western is establishing firm electric and transmission service 
rates for P-DP 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 Federal Energy Regulatory 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 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/RateAdjust/Main.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.

Timothy J. Meeks,
Administrator.
[FR Doc. E8-9332 Filed 4-28-08; 8:45 am]
BILLING CODE 6450-01-P