[Federal Register Volume 80, Number 246 (Wednesday, December 23, 2015)]
[Notices]
[Pages 79881-79883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32366]


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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.

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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00A, effective 
October 25, 2013, and 00-001.00F, effective November 17, 2014, the 
Deputy Secretary has approved and placed into effect on an interim 
basis Rate Order No. SWPA-69, which increases the power rate for the 
Sam Rayburn Dam Project (Rayburn) pursuant to the Rayburn Rate Schedule 
(SRD-15) to supersede the existing rate schedule.

DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-69 is January 1, 2016, through September 30, 2019.

FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice 
President, Chief Operating Officer, Southwestern Power Administration, 
U.S. Department of Energy, Williams Center Tower I, One West Third 
Street, Tulsa, Oklahoma 74103, (918) 595-6646, 
[email protected].

SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-69, which has been 
approved and placed into effect on an interim basis, increases the 
power rate for Rayburn pursuant to the following rate schedule:

    Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Dam Electric Cooperative, Inc. (Contract No. DE-
PM75-92SW00215)

The rate schedule supersedes the existing rate schedule shown below:

    Rate Schedule SRD-13, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Dam Electric Cooperative, Inc. (Contract No. DE-
PM75-92SW00215) (superseded by SRD-15)

Southwestern Power Administration's (Southwestern) Administrator has 
determined, based on the 2015 Rayburn Current Power Repayment Study, 
that the existing power rate will not satisfy cost recovery criteria 
specified in Department of Energy Order No. RA 6120.2 and Section 5 of 
the Flood Control Act of 1944. The finalized 2015 Rayburn Power 
Repayment Studies indicate that an increase in annual revenue of 
$333,672, or 7.9 percent, beginning January 1, 2016, will satisfy cost 
recovery criteria for Rayburn. The proposed Rayburn rate schedule would 
increase annual revenues from $4,230,120 to $4,563,792, to recover the 
costs associated with increased operations and maintenance costs as 
well as increased interest expense associated with investments and 
replacements in the hydroelectric generating facilities.
    The Administrator has followed title 10, part 903 subpart A, of the 
Code of Federal Regulations (10 CFR part 903), ``Procedures for Public 
Participation in Power and Transmission Rate Adjustments and 
Extensions'' in connection with the proposed rate schedule. On October 
9, 2015, Southwestern published notice in the Federal Register, (80 FR 
61206), of the proposed power rate increase for Rayburn. 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 power rate increase with written comments due by November 9, 
2015. Southwestern did not hold the combined Public Information and 
Comment Forum (Forum) because Southwestern did not receive any requests 
to hold the Forum. One comment was received from Gillis, Borchardt and 
Barthel, LLP, on behalf of the Sam Rayburn Dam Electric Cooperative, 
Inc., which stated they had no objection to the proposed rate 
adjustment.
    Information regarding this rate proposal, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, Williams Center 
Tower I, One West Third Street, Tulsa, Oklahoma 74103. Following review 
of Southwestern's proposal within the Department of Energy, I approved 
Rate Order No. SWPA-69 which increases the existing Rayburn power rate 
to $4,563,792 per year for the period January 1, 2016 through September 
30, 2019.

    Dated: December 17, 2015.
Elizabeth Sherwood-Randall,
Deputy Secretary.

DEPARTMENT OF ENERGY

DEPUTY SECRETARY OF ENERGY

In the matter of: Southwestern Power Administration Sam Rayburn Dam 
Project Rate
Rate Order No. SWPA-69

Order Confirming, Approving and Placing Increased Power Rate Schedule 
in Effect on an Interim Basis

    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

[[Page 79882]]

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. 00-037.00A, 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. Pursuant to 
that delegated authority, the Deputy Secretary issued this interim rate 
order.

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, its power has been marketed as an isolated 
project, under contract with Sam Rayburn Dam Electric Cooperative, Inc. 
(SRDEC) (Contract No. DE-PM75-92SW00215).
    FERC confirmation and approval of the current Rayburn rate schedule 
was provided in FERC Docket EF14-2-000 issued on February 6, 2013, (146 
FERC ]62,105) effective for the period October 1, 2013, through 
September 30, 2017.

DISCUSSION

    Southwestern prepared a 2015 Current Power Repayment Study which 
indicated that the existing power rate would not satisfy present 
financial criteria regarding repayment of investment within a 50-year 
period due to increased U.S. Army Corps of Engineers (Corps) operations 
and maintenance expenses as well as increased interest expense 
associated with investments and replacements in the hydroelectric 
generating facilities. The 2015 Revised Power Repayment Study indicated 
the need for a 7.9 percent revenue increase. These preliminary results 
provided the basis for the proposed revenue increase.
    The 2015 Revised Power Repayment Study was finalized and indicates 
that an increase in annual revenues of $333,672 (7.9 percent) is 
necessary beginning January 1, 2016, to accomplish repayment in the 
required number of years. Accordingly, Southwestern has prepared a 
proposed rate schedule based on the additional revenue requirement to 
ensure repayment.
    Southwestern conducted the rate adjustment proceeding in accordance 
with title 10, part 903, subpart A of the Code of Federal Regulations 
(10 CFR part 903), ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions.'' More specifically, 
opportunities for public review and comment during a 30-day period on 
the proposed Rayburn power rate were announced by a Federal Register 
notice published on October 9, 2015 (80 FR 61206), with written 
comments due November 9, 2015. The combined Public Information and 
Comment Forum scheduled for October 28, 2015, in Tulsa, Oklahoma was 
not held because Southwestern did not receive any requests to hold the 
forum. Southwestern provided the Federal Register notice, together with 
any requested supporting data, to the customer and interested parties 
for review and comment during the public comment period.
    Southwestern will continue to perform its Power Repayment Studies 
annually, and if the 2016 results should indicate the need for 
additional revenues, another rate filing will be conducted and updated 
revenue requirements implemented for FY 2017 and thereafter.
    Following the conclusion of the comment period on November 9, 2015, 
Southwestern finalized the Power Repayment Studies and rate schedule 
for the proposed annual rate of $4,563,792 which is the lowest possible 
rate needed to satisfy repayment criteria. This rate represents an 
annual increase of 7.9 percent. The Administrator made the decision to 
submit the rate proposal for interim approval and implementation.

COMMENTS AND RESPONSES

    Southwestern received one comment during the public comment period. 
The comment on behalf of the Sam Rayburn Dam Electric Cooperative, Inc. 
expressed no objection to the proposed rate increase.

AVAILABILITY OF INFORMATION

    Information regarding this power rate increase, including studies, 
comments and other supporting material, is available for public review 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, OK 74103.

ADMINISTRATION'S CERTIFICATION

    The 2015 Rayburn Revised Power Repayment Study indicates that the 
increased power rate of $4,563,792 will repay all costs of the project 
including amortization of the power investment consistent with the 
provisions of Department of Energy Order No. RA 6120.2. In accordance 
with Delegation Order No. 00-037.00A (October 25, 2013), and Section 5 
of the Flood Control Act of 1944, the Administrator has determined that 
the proposed Rayburn power rate is consistent with applicable law and 
is the lowest possible rate consistent with sound business principles.

ENVIRONMENT

    The environmental impact of the power rate increase proposal was 
evaluated in consideration of the Department of Energy's guidelines for 
implementing the procedural provisions of the National Environmental 
Policy Act and was determined to fall within the class of actions that 
are categorically excluded from the requirements of preparing either an 
Environmental Impact Statement or an Environmental Assessment. (10 CFR 
part 1021, App. B to Subpart D, Sec.  B1.1 ``Changing rates & 
prices'').

ORDER

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm, approve and place in 
effect on an interim basis, effective January 1, 2016, through 
September 30, 2019, the annual Rayburn rate of $4,563,792 for the sale 
of power and energy from Rayburn to the Sam Rayburn Dam Electric 
Cooperative Inc., under Contract No. DE-PM75-92SW00215. This rate shall 
remain in effect on an interim basis through September 30, 2019, or 
until the FERC confirms and approves the rate on a final basis, or 
until it is superseded by a subsequent rate.

Dated: December 17, 2015.

Dr. Elizabeth Sherwood-Randall,
Deputy Secretary

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE SRD-15 \1\
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    \1\ Supersedes Rate Schedule SRD-13.
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WHOLESALE RATES FOR HYDRO POWER AND ENERGY

SOLD TO SAM RAYBURN DAM ELECTRIC COOPERATIVE, INC.

(CONTRACT NO. DE-PM75-92SW00215)

Effective:

    During the period January 1, 2016, through September 30, 2019, in 
accordance with interim approval from Rate Order No.SWPA-69 issued by 
the

[[Page 79883]]

Deputy Secretary of Energy on December 17, 2015, and pursuant to final 
approval by the Federal Energy Regulatory Commission.

Applicable:

    To the power and energy purchased by Sam Rayburn Dam Electric 
Cooperative, Inc., (SRDEC) from the Southwestern Power Administration 
(Southwestern) under the terms and conditions of the Power Sales 
Contract dated October 7, 1992, for the sale of all Hydro Power and 
Energy generated at the Sam Rayburn Dam.

Character and Conditions of Service:

    Three-phase, alternating current, delivered at approximately 60 
Hertz, at the nominal voltage, at the point of delivery, and in such 
quantities as are specified by contract.

1. Wholesale Rates, Terms, and Conditions for Hydro Power and Energy

    1.1. These rates shall be applicable regardless of the quantity of 
Hydro Power and Energy available or delivered to SRDEC; provided, 
however, that if an Uncontrollable Force prevents utilization of both 
of the project's power generating units for an entire billing period, 
and if during such billing period water releases were being made which 
otherwise would have been used to generate Hydro Power and Energy, then 
Southwestern shall, upon request by SRDEC, suspend billing for 
subsequent billing periods, until such time as at least one of the 
project's generating units is again available.
    1.2. The term ``Uncontrollable Force,'' as used herein, shall mean 
any force which is not within the control of the party affected, 
including, but not limited to, failure of water supply, failure of 
facilities, flood, earthquake, storm, lightning, fire, epidemic, riot, 
civil disturbance, labor disturbance, sabotage, war, acts of war, 
terrorist acts, or restraint by court of general jurisdiction, which by 
exercise of due diligence and foresight such party could not reasonably 
have been expected to avoid.
    1.3. Hydro Power Rates, Terms, and Conditions
    1.3.1. Monthly Charge for the Period of January 1, 2016 through 
September 30, 2019
    $380,316 per month ($4,563,792 per year) for Sam Rayburn Dam Hydro 
Power and Energy purchased by SRDEC from January 1, 2016, through 
September 30, 2019.

[FR Doc. 2015-32366 Filed 12-22-15; 8:45 am]
BILLING CODE 6450-01-P