[Federal Register Volume 77, Number 162 (Tuesday, August 21, 2012)]
[Notices]
[Pages 50493-50494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-20490]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed extension.

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SUMMARY: The current Sam Rayburn Dam Project rate was approved by the 
Federal Energy Regulatory Commission (FERC) on March 30, 2009, Docket 
No. EF09-4021-000. These rates became effective for the period January 
1, 2009, through September 30, 2012. 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 of $193,896 (4.9 percent) to meet cost recovery 
criteria. In accordance with Southwestern's isolated project rate 
adjustment threshold, signed September 8, 2003, the Administrator, 
Southwestern, may determine, on a case by case basis, that for a 
revenue decrease or increase in the magnitude of five percent or less, 
deferral of a formal rate filing is in the best interest of the 
Government. The Deputy Secretary of Energy has the authority to extend 
rates, previously confirmed and approved by FERC, on an interim basis, 
pursuant to title 10, part 903, subpart A of the Code of Federal 
Regulations (10 CFR part 903), sections 903.22(h) and 903.23(a)(3) . In 
accordance with these authorities, Southwestern proposes to defer the 
rate adjustment and proposes that the current rates be extended for a 
one-year period effective through September 30, 2013.

DATES: The comment period for the proposed extension ends on September 
20, 2012.

FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Assistant 
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 and Extensions 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

[[Page 50494]]

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, Southwestern prepared a 
2012 Current Power Repayment Study using the existing Sam Rayburn Dam 
Project rate schedule. The PRS shows the cumulative amortization 
through FY 2011 at $24,993,504 on a total investment of $30,254,778. 
The FY 2012 Revised Power Repayment Study indicates the need for an 
increase in annual revenues of $193,896, or 4.9 percent, to meet 
repayment criteria.
    Southwestern proposes to defer the indicated rate adjustment 
because it falls within Southwestern's plus-or-minus five percent 
isolated project rate adjustment threshold and extend the current rate 
through September 30, 2013. The threshold was developed to add 
efficiency to the process of maintaining adequate rates and is 
consistent with cost recovery criteria within DOE Order Number RA 
6120.2 regarding rate adjustment plans. The extension is required 
because the current rate expires September 30, 2012. Southwestern 
proposes to defer this rate adjustment of 4.9 percent, or $193,896 per 
year in accordance with Southwestern's isolated project rate adjustment 
threshold, extend the current rate through September 30, 2013, and 
reevaluate the ability of the existing rate to provide sufficient 
revenues to satisfy costs projected in the FY 2013 Power Repayment 
Studies.
    On March 30, 2009, the current rate schedule for the Sam Rayburn 
Dam Project was confirmed and approved by the FERC on a final basis for 
a period that ends September 30, 2012. In accordance with title 10, 
part 903, subpart A of the Code of Federal Regulations (10 CFR part 
903) sections 903.22(h) and 903.23(a)(3), the Deputy Secretary may 
extend existing rates on an interim basis beyond the period specified 
by the FERC. As a result of the benefits obtained by a rate adjustment 
deferral (reduced Federal expense and rate stability) and the Deputy 
Secretary's authority to extend a previously approved rate, 
Southwestern's Administrator is proposing to extend the current Sam 
Rayburn Dam Project rate schedule. The schedule is to be effective for 
the one-year period beginning October 1, 2012, and extending through 
September 30, 2013.
    Opportunity is presented for Southwestern's customers and other 
interested parties to receive copies of the study data for the Sam 
Rayburn Dam Project. If you desire a copy of the repayment study data 
package for the Sam Rayburn Dam Project, 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].
    Following review and consideration of the written comments, 
Southwestern will submit a rate action proposal for the Sam Rayburn Dam 
Project to the Deputy Secretary of Energy for confirmation and 
approval.

    Dated: August 9, 2012.
James K. McDonald,
Assistant Administrator.
[FR Doc. 2012-20490 Filed 8-20-12; 8:45 am]
BILLING CODE 6450-01-P