[Federal Register Volume 77, Number 220 (Wednesday, November 14, 2012)]
[Notices]
[Pages 67813-67814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-27674]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Rate Order Approving an Extension of Power Rate on an 
Interim Basis.

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SUMMARY: The Deputy Secretary of Energy has approved and placed into 
effect on an interim basis Rate Order No. SWPA-65.

DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-65 is October 1, 2012, through September 30, 2013.

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

SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-65, which has been 
approved and placed into effect on an interim basis, extends the 
existing power rate for the Sam Rayburn Dam Project (Rayburn), Rate 
Schedule SRD-08, Wholesale Rates for Hydro Power and Energy Sold to Sam 
Rayburn Dam Electric Cooperative, Inc., for a period of one year, 
through September 30, 2013.
    The existing rate schedule for the Sam Rayburn Dam Project was 
confirmed and approved on a final basis by the Federal Energy 
Regulatory Commission (FERC) in the FERC Docket No. EF09-4021-000 (126 
FERC ] 62244), issued March 30, 2009, for the period January 1, 2009, 
through September 30, 2012. However, the current rate schedule will 
expire September 30, 2012. The Deputy Secretary of Energy is extending 
the project rate schedule through September 30, 2013.
    Following Department of Energy guidelines, Southwestern Power 
Administration (Southwestern) prepared a 2012 Current Power Repayment 
Study using the existing Sam Rayburn Dam Project rate schedule and a 
Revised Power Repayment Study which indicated the need for an increase 
in annual revenues of $193,896, or 4.9 percent, to meet repayment 
criteria. Southwestern's Administrator deferred a rate increase because 
the Administrator deemed it was in the best interest of the Government 
to do so as a result of benefits obtained by such a deferral, including 
reduced federal rate case expense and rate stability. The Deputy 
Secretary has determined, pursuant to the authority of 10 CFR 903.22(h) 
and 903.23(a)(3), to adopt a one-year interim extension of the Sam 
Rayburn Project Power Rate. The extension is required because the 
current rate expires September 30, 2012. Southwestern will reevaluate 
the ability of the existing rate to provide sufficient revenues to 
satisfy costs projected in the FY 2013 Power Repayment Studies.
    Pursuant to the authority of 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 of Energy may extend a FERC-approved 
rate on an interim basis. The Administrator, Southwestern Power 
Administration, has followed Title 10, Part 903 Subpart A, of the Code 
of Federal Regulations, ``Procedures for Public Participation in Power 
and Transmission Rate Adjustments and Extensions'' in connection with 
the proposed rate extension. On August 21, 2012, Southwestern published 
notice in the Federal Register, (77 FR 50493), of the proposed rate 
extension for the Rayburn project. Southwestern provided a 30-day 
comment period as an opportunity for customers and other interested 
members of the public to review and comment on the proposed rate 
extension. Southwestern received one comment during the public comment 
period. The comment, on behalf of Sam Rayburn Dam Electric Cooperative, 
Inc., expressed no objection to the rate extension through September 
30, 2013.
    Following review of Southwestern's proposal within the Department 
of Energy and pursuant to authorities granted in 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), Rate Order No. SWPA-65, which 
extends the existing Sam Rayburn Dam Project rate schedule for one year 
through September 30, 2013, is approved.

    Dated: November 7, 2012.
Daniel B. Poneman,
Deputy Secretary.

Deputy Secretary of Energy

Rate Order No. SWPA-65

Order Confirming and Approving an Extension of Power Rate Schedule in 
Effect

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern 
Power Administration (Southwestern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated to the 
Administrator of Southwestern the authority to develop power and 
transmission rates, delegated to the Deputy Secretary of the Department 
of Energy the authority to confirm, approve, and place in effect such 
rates on an interim basis and delegated to the Federal Energy 
Regulatory Commission (FERC) the authority to confirm and approve on a 
final basis or to disapprove rates developed by the Administrator under 
the delegation. This rate extension is issued by the Deputy Secretary 
pursuant to the Delegation Order No. 00-037.00 and 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).

Background

    The Sam Rayburn Dam (Rayburn) is located on the Angelina River in 
the State of Texas in the Neches River Basin. Since the beginning of 
its operation in 1965, it has been marketed as an isolated project, 
under contract with Sam Rayburn Dam Electric Cooperative, Inc. (SRDEC) 
(Contract No. DE-PM75-92SW00215). SRDEC is comprised of two separate 
entities, the Sam Rayburn G&T, and the Sam Rayburn Municipal Power 
Agency.
    In the FERC Docket No. EF09-4021-000 (126 FERC ] 62244), issued 
March 30, 2009, for the period January 1, 2009, through September 30, 
2012, the FERC confirmed and approved the current annual Rayburn rate 
of $3,949,872. However, the current rate schedule will expire September 
30, 2012. The Deputy Secretary of Energy is extending the project rate 
schedule through September 30, 2013.

[[Page 67814]]

Discussion

    Following Department of Energy guidelines, Southwestern prepared a 
2012 Current Power Repayment Study using the existing Sam Rayburn Dam 
Project rate schedule. The study 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 deferred the indicated rate adjustment because it fell 
within Southwestern's plus-or-minus five percent isolated project rate 
adjustment threshold and proposed extending 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 will reevaluate the ability of 
the existing rate to provide sufficient revenues to satisfy costs 
projected in the FY 2013 Power Repayment Studies.
    Title 10, Part 903, Subpart A of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustments and Extensions,'' has been followed in connection with the 
rate extension. Opportunities for public review and comment during a 
30-day period on the proposed Rayburn power rate extension were 
announced by a Federal Register (77 FR 50493) notice published on 
August 21, 2012. Written comments were accepted through September 20, 
2012. Southwestern provided the Federal Register notice to the customer 
and interested parties for review and comment during the formal period 
of public participation. In addition, prior to the formal 30-day public 
participation process, Southwestern discussed with the customer 
representatives the proposed rate extension. Only one formal comment 
was received from Gillis & Angley, LLP, Counsellors at Law, on behalf 
of Sam Rayburn Dam Electric Cooperative, Inc., which stated that they 
had no objection to the proposed rate extension.
    Upon conclusion of the comment period in September 2012, 
Southwestern finalized the rate schedule extension for the annual rate 
of $3,949,872 to be extended for one year through September 30, 2013. 
This rate extension will allow the FY 2013 Power Repayment Studies to 
evaluate the ability of the existing rate to provide sufficient 
revenues to accomplish repayment in the required number of years.

Comments and Responses

    Southwestern received one comment during the public comment period. 
The comment, on behalf of Sam Rayburn Dam Electric Cooperative, Inc., 
expressed no objection to the rate extension through September 30, 
2013.

Order

    In view of the foregoing and pursuant to the authority to extend 
rates, previously confirmed and approved by FERC, on an interim basis, 
of 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), I hereby extend on 
an interim basis, for the period of one year, effective October 1, 2012 
through September 30, 2013,the current FERC approved Sam Rayburn Dam 
Project Rate for the sale of power and energy.

    Dated: November 7, 2012.

Daniel B. Poneman,

Deputy Secretary.

[FR Doc. 2012-27674 Filed 11-13-12; 8:45 am]
BILLING CODE 6450-01-P