[Federal Register Volume 79, Number 171 (Thursday, September 4, 2014)]
[Notices]
[Pages 52646-52647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21107]


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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 2014 Power Repayment 
Studies for the Robert D. Willis project which show the need for an 
increase in annual revenues to meet cost recovery criteria. Such 
increased revenues are needed primarily to cover the costs associated 
with increased investments and replacements in the hydroelectric 
generating facilities and increased operations and maintenance costs. 
The Administrator of Southwestern has developed a proposed Robert D. 
Willis Rate Schedule, which is supported by power repayment studies, to 
recover the required revenues. The Revised 2014 Power Repayment Study 
indicates that the proposed Rate Schedule would increase annual 
revenues approximately 10.2 percent from $1,072,332 to $1,181,496 
effective January 1, 2015 through September 30, 2018.\1\
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    \1\ FERC on April 29, 2013 confirmed and approved the existing 
Robert D. Willis rate for the period October 1, 2012 through 
September 30, 2016. See 143 FERC ] 62,067.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register notice and will end on October 20, 
2014. If requested, a combined Public Information and Comment Forum 
(Forum) will be held in Tulsa, Oklahoma at 9:00 a.m. on October 8, 
2014. Persons desiring the Forum to be held must send a written request 
for such Forum to the Acting Vice President, Chief Operating Officer 
(see FOR FURTHER INFORMATION CONTACT) by September 11, 2014. If no 
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request is received, the Forum will not be held.

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

FOR FURTHER INFORMATION CONTACT: Tracey Stewart, Acting Vice President, 
Chief Operating Officer, Office of Corporate Operations, Southwestern 
Power Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma 74103, (918) 595-6677, [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 (DOE) created by the Department of Energy 
Organization Act, Public Law 95-91, dated August 4, 1977.
    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 DOE guidelines, Southwestern prepared a 2014 Current

[[Page 52647]]

Power Repayment Study using the existing Robert D. Willis Rate 
Schedule.\2\ Guidelines for preparation of power repayment studies are 
included in DOE Order No. RA 6120.2 entitled Power Marketing 
Administration Financial Reporting. This study indicates that 
Southwestern's legal requirement to repay the investment in the power 
generating facility for power and energy marketed by Southwestern will 
not be met without an increase in revenues. The need for increased 
revenues is primarily due to increased investments and replacements in 
Corps hydroelectric generating facilities and a slight increase in the 
costs associated with operations and maintenance. The 2014 Revised 
Power Repayment Study shows that additional annual revenues of $109,164 
(a 10.2 percent increase) are needed to satisfy repayment criteria.
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    \2\ FERC, on April 29, 2013, confirmed and approved the existing 
Robert D. Willis rate schedule for the period October 1, 2012 
through September 30, 2016. See 143 FERC ] 62,067.
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    Because of concerns expressed by Southwestern's customers during 
the development of the 2014 Power Repayment Studies regarding the 
magnitude of the proposed increase, Southwestern is proposing to 
increase revenue in two steps over a two-year period. Because 
Southwestern's current rates are sufficient to recover all average 
operation and maintenance expenses during the next two years, the 
ability to meet both annual and long-term repayment criteria is 
satisfied by increasing revenues in two steps over the period.
    The first step of the rate increase, beginning January 1, 2015, 
would incorporate one half of the required revenue or 5.1 percent 
($54,582). The second step of the rate increase, beginning October 1, 
2015, and ending on September 30, 2018, would incorporate the remaining 
one half of the revenue requirement ($54,582 or 5.1 percent). 
Southwestern will continue to perform its Power Repayment Studies 
annually, and if the 2015 results should indicate the need for 
additional revenues, another rate filing will be conducted and updated 
revenue requirements implemented for FY 2016 and thereafter.
    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). Southwestern's customers and other interested parties may request 
copies of the 2014 Robert D. Willis Power Repayment Studies and the 
proposed Rate Schedule. Submit requests to the Director, Division of 
Resources and Rates, Office of Corporate Operations, Southwestern Power 
Administration, One West Third, Tulsa, OK 74103, (918) 595-6684 or via 
email to [email protected].
    If requested a Public Information and Comment Forum (Forum) will be 
held on October 8, 2014, to explain to customers and interested parties 
the proposed Rate Schedule and supporting 2014 Power Repayment Studies, 
and to allow for comment. A chairman, who will be responsible for 
orderly procedure, will conduct the Forum if requested. Questions 
concerning the rates, 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 requesting that a Forum be held should indicate in writing 
to the Acting Vice President and Chief Operating Officer (see FOR 
FURTHER INFORMATION CONTACT) by letter, email, or facsimile 
transmission (918-595-6687) by September 11, 2014, their request for 
such a Forum. If no request is received, no such Forum will be held. 
Persons interested in speaking at the Forum, if held, should submit a 
request to the Acting Vice President and Chief Operating Officer, 
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, if held, 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 Schedule is due on or before October 20, 2014. 
Comments should be submitted to the Acting Vice President and Chief 
Operating Officer, Southwestern, (see FOR FURTHER INFORMATION CONTACT).
    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). 
The Administrator will review and consider oral and written comments 
and the information gathered in the course of the proceeding when 
submitting the finalized Robert D. Willis Power Repayment Studies and 
Rate Schedule Proposal 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 for 
confirmation and approval on a final basis. Once submitted for final 
confirmation and approval, the Commission will allow the public an 
opportunity to provide written comments on the proposed rate increase 
before making a final decision.

    Dated: August 27, 2014.
Christopher M. Turner,
Administrator.
[FR Doc. 2014-21107 Filed 9-3-14; 8:45 am]
BILLING CODE 6450-01-P