[Federal Register Volume 73, Number 213 (Monday, November 3, 2008)]
[Notices]
[Pages 65306-65307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26137]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of public review and comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has prepared Current and Revised 2008 Power Repayment 
Studies that show the need for an increase in annual revenues to meet 
cost recovery criteria. Such increased revenues are required primarily 
due to increases in U.S. Army Corps of Engineers' operations and 
maintenance estimates. The Administrator has developed a proposed Sam 
Rayburn Dam rate schedule, which is supported by a power repayment 
study, to recover the required revenues. Beginning January 1, 2009, the 
proposed rates would increase annual revenues approximately 14.3 
percent from $3,456,696 to $3,949,872.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register notice and will end December 3, 
2008. A combined Public Information and Comment Forum is scheduled to 
be held in Tulsa, Oklahoma at 1 p.m. central time on November 18, 2008, 
if requested.

ADDRESSES: If the Forum is requested, it will be held in Southwestern's 
offices, Room 1500, Williams Center Tower I, One West Third Street, 
Tulsa, Oklahoma 74103.

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

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, Department of Energy Organization Act, 
Public Law 95-91, dated August 4, 1977. Southwestern's power marketing 
activities were transferred from the Department of the Interior to the 
Department of Energy, effective October 1, 1977. Guidelines for 
preparation of power repayment studies are included in DOE Order No. RA 
6120.2 entitled Power Marketing Administration Financial Reporting. 
Procedures for Public Participation in Power and Transmission Rate 
Adjustments of the Power Marketing Administrations are found at Title 
10, part 903, Subpart A of the Code of Federal Regulations (10 CFR part 
903). Procedures for the confirmation and approval of rates for the 
Federal Power Marketing Administrations are found at Title 18, part 
300, Subpart L of the Code of Federal Regulations (18 CFR part 300).
    Southwestern markets power from 24 multi-purpose reservoir 
projects, with hydroelectric power facilities constructed and operated 
by the U.S. Army Corps of Engineers. These projects are located in the 
states of Arkansas, Missouri, Oklahoma, and Texas. Southwestern's 
marketing area includes these states plus Kansas and Louisiana. The 
costs associated with the hydropower facilities of 22 of the 24 
projects are repaid via revenues received under the Integrated System 
rates, as are Southwestern's transmission facilities that consist of 
1,380 miles of high-voltage transmission lines, 24 substations, and 46 
microwave and VHF radio sites. Costs associated with the Robert D. 
Willis and Sam Rayburn Dams, two projects that are isolated 
hydraulically, electrically, and financially from the Integrated 
System, are repaid by separate rate schedules.
    Following Department of Energy guidelines, Southwestern's 
Administrator prepared a Current Power Repayment Study using the 
existing Sam Rayburn Dam rate. The Study indicates that Southwestern's 
legal requirement to repay the investment in the power generating 
facility for power and energy marketed by Southwestern will not be met 
without an increase in revenues. The need for increased revenues is due 
primarily to increases in Corps of Engineers' operations and 
maintenance expenses at the project. The Revised Power Repayment Study 
shows that an increase in annual revenue of $493,176 (a 14.3 percent 
increase), beginning January 1, 2009, is needed to satisfy repayment 
criteria.
    Opportunity is presented for Southwestern customers and other 
interested parties to receive copies of the Sam Rayburn Dam Power 
Repayment Studies and the proposed rate schedule. If you desire a copy 
of the Sam Rayburn Dam Power Repayment Data Package with the proposed 
Rate Schedule, submit your request to the Director, Resources and 
Rates, Office of Corporate Operations, Southwestern Power 
Administration, One West Third Street, Tulsa, OK 74103, (918) 595-6680 
or via e-mail to [email protected].
    A Public Information and Comment Forum (Forum) is tentatively 
scheduled to be held on November 18, 2008, to explain to customers and 
interested parties the proposed rate and supporting studies. The 
proceeding will be transcribed, if held. A chairman, who will be 
responsible for orderly procedure, will conduct the Forum. Questions 
concerning the rate, studies, and information presented at the Forum 
will be answered, to the extent possible, at the Forum. Questions not 
answered at the Forum will be answered in writing. However, questions 
involving voluminous data contained in Southwestern's records may best 
be answered by consultation and review of pertinent records at 
Southwestern's offices.
    Persons interested in attending the Forum should indicate in 
writing by letter, e-mail, or facsimile transmission (918-595-6656) by 
November 10, 2008, their intent to appear at such Forum. Should no one 
indicate an intent to attend by the above-cited deadline, no such Forum 
will be held.
    Persons interested in speaking at the Forum should indicate in 
writing by letter, e-mail, or facsimile transmission (918-595-6656) at 
least seven (7) calendar days prior to the Forum so that a list of 
speakers can be developed. The chairman may allow others to speak if 
time permits.
    A transcript of the Forum will be made. Copies of the transcripts 
may be obtained directly from the transcribing service for a fee. 
Copies of all documents introduced will also be

[[Page 65307]]

available from the transcribing service for a fee.
    Written comments on the proposed Sam Rayburn Dam Rate are due on or 
before December 3, 2008. Five copies of the written comments should be 
submitted to James K. McDonald, Assistant Administrator, Southwestern 
Power Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma 74103.
    Following review of the oral and written comments and the 
information gathered during the course of the proceedings, the 
Administrator will submit the final Sam Rayburn Dam Rate Proposal, and 
Power Repayment Studies in support of the proposed rate to the Deputy 
Secretary of Energy for confirmation and approval on an interim basis, 
and subsequently to the Federal Energy Regulatory Commission (FERC) for 
confirmation and approval on a final basis. The FERC will allow the 
public an opportunity to provide written comments on the proposed rate 
increase before making a final decision.

    Dated: October 21, 2008.
Jon C. Worthington,
Administrator.
 [FR Doc. E8-26137 Filed 10-31-08; 8:45 am]
BILLING CODE 6450-01-P