[Federal Register Volume 75, Number 21 (Tuesday, February 2, 2010)]
[Notices]
[Pages 5315-5316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-2170]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project--Rate Order No. WAPA-150

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Extension of Rate-Setting Formula and 
Adjustment to Base Charge and Rates.

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SUMMARY: This action is a proposal to extend the existing Boulder 
Canyon Project (BCP) rate-setting formula and approve the proposed base 
charge and rates for FY 2011. Publication of this Federal Register 
notice begins the formal process to extend the existing rate-setting 
formula and the proposed base charge and rates. The proposed base 
charge and rates will provide sufficient revenue to pay all annual 
costs, including interest expense, and repayment of required investment 
within the allowable period.

DATES: The consultation and comment period begins today and will end 
May 3, 2010. Western will present a detailed explanation of the 
proposed base charge and rates at a public information forum on April 
7, 2010, beginning at 10:30 a.m. MST, Phoenix, Arizona. Western will 
accept oral and written comments at a public comment forum on April 21, 
2010, beginning at 10:30 a.m. MST, Phoenix, Arizona. 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 Regional Customer Service Office, 
located at 615 South 43rd Avenue, Phoenix, Arizona, 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, telephone (602) 605-2442, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: Annual base charge and rates adjustments are 
required by Western's existing BCP rate-setting formula methodology. 
That methodology was originally approved on an interim basis by the 
Deputy Secretary of Energy on October 31,

[[Page 5316]]

1995,\1\ and confirmed by the Federal Energy Regulatory Commission 
(FERC) on April 19, 1996,\2\ for a five year period through 2000. The 
rate-setting formula was subsequently extended for additional five year 
periods in 2001 \3\ and 2006.\4\ Western proposes to extend the 
existing rate-setting formula through September 30, 2015, under Rate 
Order No. WAPA-150 and Rate Schedule BCP-F8, and approve the proposed 
base charge and rates for FY 2011. The proposed base charge and rates 
for BCP electric service are designed under the existing rate-setting 
formula to recover an annual revenue requirement that includes 
investment repayment, interest, operation and maintenance, 
replacements, payment to states, visitor services, and uprating program 
payments. The total costs are offset by the projected revenue from 
water sales, visitor center, water pump energy sales, facilities use 
charges, regulation, reactive supply and voltage control, spinning 
reserve, miscellaneous leases, and late fees. The annual revenue 
requirement is the annual base charge for electric service divided 
equally between capacity 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.
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    \1\ 60 FR 57859 (November 22, 1995).
    \2\ 75 FERC ] 62,050.
    \3\ 96 FERC ] 61,171 (July 31, 2001).
    \4\ 115 FERC ] 61,362 (June 22, 2006).
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    The Deputy Secretary of Energy (DOE) approved the extension of the 
existing rate-setting formula and Rate Schedule BCP-F7, under Rate 
Order No. 120, effective on October 1, 2005, for the period ending 
September 30, 2010.\5\
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    \5\ 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 $70,681,340, the 
forecasted energy rate is 9.47 mills per kilowatthour (mills/kWh), the 
forecasted capacity rate is $1.76 per kilowattmonth (kWmonth), and the 
composite rate is 18.93 mills/kWh.
    Under Rate Order No. WAPA-150 and Rate Schedule BCP-F8, the 
proposed base charge for FY 2011 will result in an overall composite 
rate increase of about 3 percent. The proposed base charge will 
increase about 3.22 percent, the proposed forecasted energy rate will 
increase about 2.53 percent, and the proposed forecasted capacity rate 
will increase about 0.57 percent. The proposed base charge and rates 
for BCP electric service are listed in the following table.

                                 Table 1--Electric Service Base Charge and Rates
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                                                                   Existing base     Proposed base
                                                                 charge and rates  charge and rates    Percent
                                                                  October 1, 2009   October 1, 2010     change
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Composite (mills/kWh)..........................................             18.93             19.43         2.64
Base Charge ($)................................................       $70,681,340       $72,959,824         3.22
Energy Rate (mills/kWh)........................................              9.47              9.71         2.53
Capacity Rate ($/kWmonth)......................................             $1.76             $1.77         0.57
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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 and the extension 
of rate-setting methodology consistent with 10 CFR part 903.
    Western is establishing the 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. 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 projects 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 procedures 
for public participation in power rate adjustments (10 CFR part 903) 
were published on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that Western initiates or uses to develop the proposed base 
charge and rates are available for inspection and copying at the Desert 
Southwest Customer Service Regional Office, Western Area Power 
Administration, 615 South 43rd Avenue, Phoenix, Arizona. 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 (NEPA) of 
1969 (42 U.S.C. 4321-4347 et seq.); Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR 
part 1021), Western is in the process of determining whether an 
environmental assessment or an environmental impact statement should be 
prepared or if this action can be categorically excluded from those.

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 15, 2010.
Timothy J. Meeks,
Administrator.
[FR Doc. 2010-2170 Filed 2-1-10; 8:45 am]
BILLING CODE 6450-01-P