[Federal Register Volume 77, Number 132 (Tuesday, July 10, 2012)]
[Notices]
[Pages 40609-40610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-16815]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Robert D. Willis 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 2012 Power Repayment 
Studies which show the need for an increase in annual revenues to meet 
cost recovery criteria. Such increased revenues are needed to cover 
increased costs associated with operating and maintaining the 
facilities as well as increased costs associated with compliance 
requirements of the North American Electric Reliability Corporation. 
Additional revenues are also needed to recover increased costs 
associated with investments and replacements to the hydroelectric 
generating facilities. The Administrator has developed a proposed 
Robert D. Willis rate schedule, which is supported by a power repayment 
study, to recover the required revenues. The June 2012 Revised Power 
Repayment Study indicates that the proposed rate schedule would 
increase annual revenues approximately 15.4 percent from $929,388 to 
$1,072,332 effective October 1, 2012 through September 30, 2016.\1\
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    \1\ FERC on April 27, 2009 confirmed and approved the existing 
Robert D. Willis rate for the period October 1, 2008 through 
September 30, 2012. See 127 FERC ] 62072.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register notice and will end on August 9, 
2012. If requested, a combined Public Information and Comment Forum 
(Forum) will be held on July 31, 2012, in Tulsa, Oklahoma at 9 a.m.
    Persons desiring the Forum to be held should indicate in writing to 
the Southwestern Administrator (see FOR FUTHER INFORMATION CONTACT) by 
letter, email or facsimile transmission (918-

[[Page 40610]]

595-6656) by July 16, 2012, their intent to appear at such Forum.

ADDRESSES: The Forum will be held in Southwestern's office, Room 1460, 
Williams Center Tower I, One West Third Street, Tulsa, Oklahoma 74103.

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

SUPPLEMENTARY INFORMATION: Originally established by Secretarial Order 
No. 1865 dated August 31, 1943, Southwestern is an agency within the 
U.S. Department of Energy created by the Department of Energy 
Organization Act, Public Law 95-91, dated August 4, 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 (Corps). 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 those of Southwestern's transmission facilities, which 
consist of 1,380 miles of high-voltage transmission lines, 25 
substations, and 46 microwave and VHF radio sites. Costs associated 
with the Sam Rayburn and Robert D. Willis Dams, two Corps projects that 
are isolated hydraulically, electrically, and financially from the 
Integrated System, are repaid by separate rate schedules.
    Following Department of Energy guidelines, the Administrator, 
Southwestern, prepared a Current Power Repayment Study using the 
existing rate. The Study indicates that Southwestern's legal 
requirement to repay the investment in power generating facility for 
power and energy marketed by Southwestern will not be met without an 
increase in annual revenues. The need for increased revenues is due to 
increased costs associated with annual operations and maintenance and 
to recover increased investments and replacements in the Corps 
hydroelectric generating facility. The Revised Power Repayment Study 
shows that additional annual revenues of $142,944 (a 15.4 percent 
increase) are needed to satisfy repayment criteria.
    Because of concerns expressed by Southwestern's customers, during 
their informal participation in the development of the Power Repayment 
Studies, regarding the magnitude of the proposed increase, Southwestern 
is proposing to increase revenue in two steps over a two-year period. 
Since our current rates are sufficient to recover all average operation 
and maintenance expenses during the next two years, our ability to meet 
both annual and long-term repayment criteria is satisfied by increasing 
revenues in steps over the period.
    The first step of the rate increase, beginning October 1, 2012, 
would incorporate one half of the required revenue or 7.7 percent 
($71,472). The second step of the rate increase, beginning October 1, 
2013, and ending on September 30, 2016, would incorporate the remaining 
one half of the revenue requirement ($71,472 or 7.7 percent). 
Southwestern will continue to perform its Power Repayment Studies 
annually, and if the 2013 results should indicate the need for 
additional revenues, another rate filing will be conducted and updated 
revenue requirements implemented for FY 2013 and thereafter.
    Opportunity is presented for Southwestern's customers and other 
interested parties to receive copies of the Robert D. Willis Studies 
and the proposed rate schedule. If you desire a copy of the Robert D. 
Willis Power Repayment Studies with the proposed Rate Schedule, submit 
your request to the Director, Division of Resources and Rates, Office 
of Corporate Operations, Southwestern Power Administration, One West 
Third, Tulsa, OK 74103, (918) 595-6680 or via email to 
[email protected].
    A Public Information and Comment Forum (Forum) is tentatively 
scheduled to be held on July 31, 2012, to explain to customers and 
interested parties the proposed rate and supporting studies and to 
allow for comments. A chairman, who will be responsible for orderly 
procedure, will conduct the Forum if a Forum is requested. 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. 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 desiring the Forum to be held should indicate in writing to 
the Southwestern Administrator (see FOR FURTHER INFORMATION CONTACT) by 
letter, email or facsimile transmission (918-595-6656) by July 16, 
2012, their intent to appear at such Forum. If no one so indicates his 
or her intent to attend, no such Forum will be held. Persons interested 
in speaking at the Forum should submit a request to Mr. James K. 
McDonald, Administrator, Southwestern, at least seven (7) calendar days 
prior to the Forum so that a list of forum participants can be 
developed. The chairman may allow others to speak if time permits.
    A transcript of the Forum will be made. Copies of the transcript 
and all documents introduced will be available for review at 
Southwestern's offices (see ADDRESSES) during normal business hours. 
Copies of the transcript and all documents introduced may also be 
obtained, for a fee, from the transcribing service. A copy of all 
written comments or an electronic copy in MS Word on the proposed 
Robert D. Willis Rate is due on or before August 9, 2012. Comments 
should be submitted to Mr. James K. McDonald, Administrator, 
Southwestern (see FOR FURTHER INFORMATION CONTACT).
    Following review of the oral and written comments and the 
information gathered in the course of the proceeding, the Administrator 
will submit the finalized Robert D. Willis 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 
(Commission) for confirmation and approval on a final basis. The 
Commission will allow the public an opportunity to provide written 
comments on the proposed rate increase before making a final decision.

    Dated: June 28, 2012.
James K. McDonald,
Administrator.
[FR Doc. 2012-16815 Filed 7-9-12; 8:45 am]
BILLING CODE 6450-01-P