[Federal Register Volume 79, Number 24 (Wednesday, February 5, 2014)]
[Notices]
[Pages 6896-6897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-02405]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed base charge and rates.

-----------------------------------------------------------------------

SUMMARY: Western Area Power Administration (Western), a power marketing 
administration within the Department of Energy (DOE), 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, 2014, 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 2014. The proposed base charge and rates are 
scheduled to become effective October 1, 2014, and will remain in 
effect through September 30, 2015. 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 6, 2014. Western will present a detailed explanation of the 
proposed base charge and rates at a public information forum on March 
26, 2014, at 10:30 a.m. Mountain Standard Time (MST), in Phoenix, 
Arizona. Western will accept oral and written comments at a public 
comment forum on April 16, 2014, 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, 
Western Area Power Administration, 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, email [email protected]. Written comments may also 
be faxed to (602) 605-2490, attention: Jack Murray. Western will post 
the principle documents used in developing the rates on its Web site at 
http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm. Western will also 
post official comments received via letter, fax, and email to this Web 
site.
    Access to Western facilities is controlled. Any United States 
(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: Jack Murray, Rates Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, email 
[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, the visitor center, ancillary services, and late 
fees. The annual revenue requirement is the base charge for electric 
service and is divided equally between capacity and energy. The annual 
composite rate is the

[[Page 6897]]

base charge divided by the annual energy sales.
    Rate Schedule BCP-F8, Rate Order No. WAPA-150 was approved on an 
interim basis by the Deputy Secretary of Energy on September 16, 2010, 
for a 5 year period beginning on October 1, 2010, and ending September 
30, 2015.\1\ The schedule received final approval from the Federal 
Energy Regulatory Commission (FERC) on December 9, 2010.\2\ Western's 
existing rate formula for electric service requires recalculation of 
the base charge and rates annually based on updated financial and 
hydrology data. The proposed base charge for fiscal year (FY) 2015 
under Rate Schedule BCP-F8 is $90,697,927, and the proposed composite 
rate is 24.72 mills/kilowatthour.
---------------------------------------------------------------------------

    \1\ 75 FR 57912 (September 23, 2010).
    \2\ 133 FERC ] 62,229.
---------------------------------------------------------------------------

    The proposed BCP electric service base charge represents an 
increase of approximately 19 percent compared to the FY 2014 base 
charge. The 19 percent increase in the base charge is based on the most 
current financial data available at this time, which was taken from the 
latest rate-base power repayment study. The proposed BCP composite rate 
represents an increase of approximately 22 percent compared to the FY 
2014 composite rate. The 22 percent increase is based on current 
hydrology conditions and corresponding Lake Mead elevations. The 
following table compares the existing and proposed base charge and 
composite rate. This proposal, effective October 1, 2014, is 
preliminary and is subject to change upon publication of final formula 
rates.

                       Comparison of Existing and Proposed Base Charge and Composite Rate
----------------------------------------------------------------------------------------------------------------
                                                 Existing October 1,   Proposed October 1,
                                                    2013 through          2014 through         Percent change
                                                 September 30, 2014    September 30, 2015
----------------------------------------------------------------------------------------------------------------
Base Charge ($)...............................            76,108,019            90,697,927                    19
Composite Rate (mills/kWh)....................                 20.18                 24.72                    22
----------------------------------------------------------------------------------------------------------------

    The increase in the proposed base charge is due to increases in the 
annual operation and maintenance expenses, visitor center costs, 
uprating program principal payments, capital investment principal 
payments and replacement costs. Currently, there is no projected year-
end carryover from FY 2014 resulting in an overall increase in the base 
charge for FY 2015. However, these results are based on preliminary 
data and subject to change upon receipt of audited FY-end financial 
information. The projected increase in the composite rate is due to the 
projected increase in the base charge and lower energy projections 
resulting from the current hydrology conditions and Lake Mead 
elevations.

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 DOE 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. 00-037.00A, effective October 25, 2013, 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 DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985 (50 FR 87835).

Availability of Information

    All brochures, studies, comments, 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 parts 1500-1508); and DOE NEPA Regulations (10 CFR 
part 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: December 20, 2013.
Mark A. Gabriel,
Administrator.
[FR Doc. 2014-02405 Filed 2-4-14; 8:45 am]
BILLING CODE 6450-01-P