[Federal Register Volume 74, Number 20 (Monday, February 2, 2009)]
[Notices]
[Pages 5839-5840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2167]


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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, 2009, 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 2009. The proposed base charge and rates are 
scheduled to become effective on October 1, 2009, and will remain in 
effect through September 30, 2010. 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 4, 2009. Western will present a detailed explanation of the 
proposed base charge and rates at a public information forum on April 
1, 2009, beginning at 10:30 a.m. MST, in Phoenix, AZ. Western will 
accept oral and written comments at a public comment forum on April 22, 
2009, 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. Written comments should be sent to Darrick Moe, 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 Manager, 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, payments to states, visitor services, and 
uprating payments. The total costs are offset by the projected revenue 
from water sales, visitor center, water pumping energy sales, 
facilities use charges, regulation and spinning reserve services, 
miscellaneous leases, and late fees. The 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.

[[Page 5840]]

    Rate Schedule BCP-F7, Rate Order No. WAPA-120, became effective on 
October 1, 2005, for the period ending September 30, 2010.\1\
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    \1\ FERC confirmed and approved Rate Order No. WAPA-120 in 
Docket EF05-5091-000. See United States Department of Energy, 
Western Area Power Administration, Boulder Canyon Project, 115 FERC 
] 61,362 (June 22, 2006).
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    The base charge for fiscal year (FY) 2010 is $72,394,809, the 
forecasted energy rate is 9.95 mills per kilowatthour (mills/kWh), the 
forecasted capacity rate is $1.80 per kilowattmonth (kWmonth), and the 
composite rate is 19.91 mills/kWh.
    Under Rate Schedule BCP-F7, the proposed rates for BCP electric 
service will result in an overall composite rate increase of seven 
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    Proposed October
                                                          1, 2008 through    1, 2009 through
                                                           September 30,      September 30,         % Change
                                                                2009               2010
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Composite Rate (mills/kWh).............................              18.62              19.91                  7
Base Charge ($)........................................         70,213,497         72,394,809                  3
Energy Rate (mills/kWh)................................               9.31               9.95                  7
Capacity Rate ($/kWmonth)..............................               1.73               1.80                  4
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    The increase in the proposed base charge and rates is due to 
increases in the annual operation and maintenance costs, visitor center 
costs, and the uprating program payments. Initial analysis of the 
projected financial data for FY 2010 reflects a slight decrease in 
overall annual costs and a slight increase in other revenues when 
compared to FY 2009. However, since there is no projected year-end 
carryover into FY 2010, the result is an overall increase in the base 
charge for FY 2010. Another factor contributing to the increase in the 
rates is the decrease in energy and capacity sales associated with 
continued poor hydrology in the region resulting in lower than normal 
Lake Mead water elevations.

Legal Authority

    Western will hold both a public information forum and a public 
comment forum. After review of public comments, Western will take 
further action on the proposed base charge and rates consistent with 10 
CFR parts 903 and 904.
    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. 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 FERC. 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, 
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 5, 2009.
Timothy J. Meeks,
Administrator.
[FR Doc. E9-2167 Filed 1-30-09; 8:45 am]
BILLING CODE 6450-01-P