[Federal Register Volume 74, Number 11 (Friday, January 16, 2009)]
[Notices]
[Pages 3013-3015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-895]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective 
December 6, 2001, and 00-001.00C, effective January 31, 2007, the 
Deputy Secretary has approved and placed into effect on an interim 
basis Rate Order No. SWPA-61, which provides the following Integrated 
System Rate Schedules:
    Rate Schedule P-06A, Wholesale Rates for Hydro Peaking Power.
    Rate Schedule NFTS-06A, Wholesale Rates for Non-Federal 
Transmission Service.

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

SUPPLEMENTARY INFORMATION: The 2008 Power Repayment Studies indicated 
that rates prescribed by Rate Schedules P-06, Wholesale Rates for Hydro 
Peaking Power, and NFTS-06, Wholesale Rates for Non-Federal 
Transmission Service, as approved in Docket No. EF07-4011-000, for the 
period October 1, 2006, through September 30, 2010, are sufficient to 
meet repayment criteria and do not require any adjustment. However, it 
is necessary to make technical, non-revenue impacting changes to the 
terms and conditions of both rates. The Real Power Losses provisions in 
rate schedules P-06 and NFTS-06 were revised to specify that all real 
power losses associated with deliveries of non-Federal energy 
transmitted by Southwestern on behalf of transmission customers must be 
scheduled and delivered (self-supplied) to Southwestern by such 
customers during the second month after such real power losses were 
incurred by Southwestern. Prior to these new provisions, transmission 
customers were provided the option to either purchase losses from 
Southwestern or elect, on an annual basis, to self-provide their 
respective loss energy subject to certain conditions. These new 
provisions incorporate comments received by Southwestern during 
customer meetings held throughout 2008. As a result of these informal 
meetings, it was determined that the revised rate schedule provisions 
can provide cost-savings to Southwestern's transmission customers, 
operational benefits to Southwestern, and are consistent with Federal 
Energy Regulatory Commission (FERC) Order No. 888.
    Rate Schedule P-06A applies to wholesale customers purchasing hydro 
peaking power and peaking energy from the Integrated System. This rate 
schedule is designed for the sale of Federal power and energy. Rate 
Schedule NFTS-06A applies to wholesale customers purchasing Non-Federal 
Point-to-Point and Network Transmission Service. In developing the 
revised real power losses rate schedules provisions, the title of the 
P-06 and NFTS-06 rate schedules were changed to P-06A and NFTS-06A 
respectively, to reflect the fact that revisions have been made. In 
addition to replacing the section entitled ``Rates for Real Power 
Losses'' within the rate schedules, minor corrections and modifications 
were incorporated to clarify and update any sections of the rate 
schedules containing references to real power losses. These changes 
will have no impact on the amortization or status of repayment 
forecasted in the power repayment studies and will not require rate 
changes. Revenues based on current rates remain sufficient to meet 
repayment criteria.
    The Administrator, Southwestern Power Administration (Southwestern) 
has followed Title 10, Part 903, Subpart A of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions,'' in connection with the 
rate schedule revisions being proposed. The public was advised by 
notice published in the Federal Register (73 FR 63969), October 28, 
2008, of proposed rate schedule changes and of the opportunity to 
provide written comments for a period of 30 days ending November 28, 
2008. Accordingly, several informal meetings were held with customers 
and interested parties to discuss the proposed changes. No comments 
were received during the period of public participation related to the 
proposed rate schedule changes.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved Rate Order No. SWPA-61 on an interim basis for 
the period January 1, 2009, through September 30, 2010, or until 
confirmed and approved on a final basis by the Federal Energy 
Regulatory Commission.


[[Page 3014]]


    Dated: January 8, 2009.
Jeffrey F. Kupfer,
Deputy Secretary.

United States of America, Department of Energy, Deputy Secretary.

In the Matter of: Southwestern Power Administration Integrated System 
Rate Schedules; Order Confirming, Approving and Placing Revised Power 
Rate Schedules in Effect On an Interim Basis

Rate Order No. SWPA-61

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern 
Power Administration (Southwestern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 0204-108, effective 
December 14, 1983, the Secretary of Energy delegated to the 
Administrator of Southwestern the authority to develop power and 
transmission rates, delegated to the Deputy Secretary of the Department 
of Energy the authority to confirm, approve, and place in effect such 
rates on an interim basis and delegated to the Federal Energy 
Regulatory Commission the authority to confirm and approve on a final 
basis or to disapprove rates developed by the Administrator under the 
delegation. Delegation Order No. 0204-108, as amended, was rescinded 
and subsequently replaced by Delegation Orders 00-037.00 (December 6, 
2001) and 00-001-00C (January 31, 2007). The Deputy Secretary issued 
this rate order pursuant to said delegations.

Background

    In May 2008, Southwestern Power Administration (Southwestern) 
completed its review of the adequacy of the current rate schedules for 
the Integrated System and finalized its 2008 Power Repayment Studies 
(PRSs). The studies indicated that the proposed rates as shown in Rate 
Schedules P-06 and NFTS-06 would meet cost recovery criteria for the 
Integrated System projects. The Federal Energy Regulatory Commission 
(FERC) confirmation and approval of the following Integrated System 
(System) rate schedules was provided in FERC Docket No. EF07-4011-000 
(118 FERC ] 62, 162) issued February 27, 2007, for the period October 
1, 2006, through September 30, 2010:
    Rate Schedule P-06, Wholesale Rates for Hydro Peaking Power.
    Rate Schedule NFTS-06, Wholesale Rates for Point-to-Point and 
Network Transmission Service.
    Rate Schedule EE-06, Wholesale Rate for Excess Energy.
    Based on operations under the approved Rate Schedules, the 
Administrator, Southwestern, has determined that a revision to the Real 
Power Losses provision within existing rate schedules P-06 and NFTS-06 
is required. Since the proposed changes to the rate schedules are 
associated with Real Power Losses, the net results of the 2008 
Integrated System Power Repayment Studies, which was the basis for the 
existing rate schedules, will not be altered. The designations of the 
aforementioned rate schedules have been revised from P-06 and NFTS-06 
to P-06A and NFTS-06A to reflect the fact that revisions have been 
made.
    Titles 10, Part 903 Subpart A, of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustments and Extensions'' (Part 903) have been followed in 
connection with the proposed Rate Schedules P-06A and NFTS-06A. An 
opportunity for customers and other interested members of the public to 
review and comment on the proposed rate schedules was announced by 
notice published in the Federal Register October 28, 2008 (73 FR 
63969), with written comments due by November 28, 2008. In addition, 
Southwestern held informal meetings with customers to discuss proposed 
changes and to provide opportunity for input in the development of 
these changes. No comments were received during the period of public 
participation related to the proposed rate schedule changes.

Discussion

    Rate Schedule P-06A applies to wholesale customers purchasing hydro 
peaking power and peaking energy from the Integrated System. This rate 
schedule is designed for the sale of Federal power and energy. Rate 
Schedule NFTS-06A applies to wholesale customers purchasing Non-Federal 
Point-to-Point and Network Transmission Service. In addition to 
replacing the section entitled ``Rates for Real Power Losses'' within 
the rate schedules, minor corrections and modifications were 
incorporated to clarify and update any sections of the rate schedules 
containing references to real power losses. These changes will have no 
impact on the amortization or status of repayment forecasted in the 
power repayment studies and will not require rate changes. Revenues 
based on current rates remain sufficient to meet repayment criteria.
    For the period January 1, 2009, through September 30, 2010, 
Southwestern's P-06A and NFTS-06A rate schedules will require that all 
real power losses associated with deliveries of non-Federal energy 
transmitted by Southwestern must be scheduled and delivered (self-
supplied) to Southwestern by customers during the second month after 
such real power losses were incurred by Southwestern. Southwestern will 
determine the amount of real power losses associated with non-Federal 
energy transmitted on behalf of each customer in the manner specified 
in the rate schedules and provide a written schedule setting forth the 
delivery rate and total quantity of real power loss energy to be 
delivered back to Southwestern. Should a customer fail to return the 
total quantity of real power loss energy to Southwestern, according to 
the schedule provided during the month in which such loss energy is 
due, the customer will be invoiced and obligated to purchase, at the 
rate stipulated in the P-06A and NFTS-06A rate schedules, the quantity 
of loss energy the customer failed to return to Southwestern.

Availability of Information

    Information regarding these rate schedules changes is available for 
public review and comment in the offices of Southwestern Power 
Administration, One West Third Street, Tulsa, Oklahoma 74103.

Comments and Responses

    Southwestern received no comments during the period of public 
participation related to the proposed rate schedule changes.

Other Issues

    There were no other issues raised during the informal meetings or 
during the formal public participation period.

Administrator's Certification

    The revised rate schedules will repay all costs of the Integrated 
System including amortization of the power investment consistent with 
the provisions of Department of Energy Order No. RA 6120.2. In 
accordance with Delegation Order Nos. 00-037.00, effective December 6, 
2001, and 00-001.00C, effective January 31, 2007, and Section 5 of the 
Flood Control Act of 1944, the Administrator has determined that the 
proposed Integrated System rate schedules are consistent with 
applicable law and the lowest possible rates consistent with sound 
business principles.

[[Page 3015]]

Environment

    No additional evaluation of the environmental impact of the 
proposed rate schedule changes was conducted since no change has been 
made to the currently-approved System rates which were determined to 
fall within the class of actions that are categorically excluded from 
the requirements of preparing either an Environmental Impact Statement 
or an Environmental Assessment.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm, approve and place in 
effect on an interim basis, effective January 1, 2009, the Southwestern 
Integrated System Rate Schedules P-06A and NFTS-06A which shall remain 
in effect on an interim basis through September 30, 2010, or until the 
FERC confirms and approves the rates on a final basis.

    Dated: January 8, 2009.
Jeffrey F. Kupfer,
Deputy Secretary.
 [FR Doc. E9-895 Filed 1-15-09; 8:45 am]
BILLING CODE 6450-01-P