[Federal Register Volume 76, Number 30 (Monday, February 14, 2011)]
[Notices]
[Pages 8359-8361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3225]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

[[Page 8360]]


ACTION: Notice of proposed base charge and rates.

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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, 2011, under Rate Schedule BCP-F8. 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 2011. The proposed base charge and rates are 
scheduled to become effective on October 1, 2011, and will remain in 
effect through September 30, 2012. 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 16, 2011. Western will present a detailed explanation of the 
proposed base charge and rates at a public information forum on April 
6, 2011, beginning at 10:30 a.m. MST, in Phoenix, Arizona. Western will 
accept oral and written comments at a public comment forum on April 27, 
2011, 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, 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 
processes 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. 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 30 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, reactive supply, 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.
    Rate Schedule BCP-F8, Rate Order No. WAPA-150, was approved on an 
interim basis by the Deputy Secretary of Energy on September 23, 2010 
for a five-year period beginning on October 1, 2010, ending September 
30, 2015,\1\ and received final approval from the Federal Energy 
Regulatory Commission on December 9, 2010.\2\ Western's existing rate 
formula for electric service requires recalculation of the base charge 
and rate annually based on updated financial and hydrology data. The 
proposed base charge for fiscal year (FY) 2012 under Rate Schedule BCP-
F8 is $82,308,519, the forecasted energy rate is 11.08 mills per 
kilowatthour (mills/kWh), the forecasted capacity rate is $2.00 per 
kilowattmonth (kWmonth), and the proposed composite rate is 22.16 
mills/kWh.
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    \1\ 75 FR 57912.
    \2\ 133 FERC ] 62,229.
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    The proposed rates for BCP electric service will result in an 
overall composite rate increase of approximately 12 percent. The 
following Table 1 compares the existing and proposed base charge and 
rates. The Proposed Base Charge and Rates effective October 1, 2011, 
are preliminary and are subject to change upon publication of final 
formula rates.

Comparison of Existing and Proposed Base Charge and Rates

 
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                                                                     Existing        Proposed
                                                                    October 1,      October 1,
                                                                   2010 through    2011 through   Percent change
                                                                   September 30,   September 30,
                                                                       2011            2012
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Base Charge ($).................................................      75,182,522      82,308,519               9
Composite Rate (mills/kWh)......................................           19.73           22.16              12
Energy Rate (mills/kWh).........................................            9.86           11.08              12
Capacity Rate ($/kWmonth).......................................            1.90            2.00               5
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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 principal payments. Since there is no 
projected year-end carryover from FY 2011, the result is an overall 
increase in the base charge for FY 2012. Another factor contributing to 
the increase in the energy rate is the decrease in energy sales 
associated with continued poor hydrology in the region

[[Page 8361]]

resulting in lower than normal Lake Mead water elevations. Although the 
capacity sales are projected to be slightly higher in FY 2012 than in 
FY 2011, the increase in the base charge results in an increase in the 
capacity rate.

Legal Authority

    Since the proposed rates constitute a major rate adjustment as 
defined by 10 CFR part 903, 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. 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 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, 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); Council on Environmental Quality 
Regulations (40 CFR 1500-1508); and DOE NEPA Regulations (10 CFR 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: February 3, 2011.
Timothy J. Meeks,
Administrator.
[FR Doc. 2011-3225 Filed 2-11-11; 8:45 am]
BILLING CODE 6450-01-P