[Federal Register Volume 81, Number 64 (Monday, April 4, 2016)]
[Notices]
[Pages 19169-19171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07641]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

[[Page 19170]]


ACTION: Notice of proposed base charge and rates.

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SUMMARY: Western Area Power Administration (Western) is proposing an 
adjustment to the Boulder Canyon Project (BCP) electric service base 
charge and rates. The current base charge and rates under Rate Schedule 
BCP-F9 expire September 30, 2016. The current base charge is not 
sufficient to cover all annual costs including operation and 
maintenance, replacements, and interest expense; and 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. Western will post a 
detailed rate package that identifies the reasons for the base charge 
and rates adjustment on its Web site during the consultation and 
comment period. The proposed base charge and rates are scheduled to 
become effective October 1, 2016, and will remain in effect through 
September 30, 2017. Publication of this Federal Register notice 
initiates the formal process for the proposed base charge and rates.

DATES: The consultation and comment period begins today and will end 
July 5, 2016. Western will present a detailed explanation of the 
proposed base charge and rates at a public information forum that will 
be held on April 27, 2016, at 10:30 a.m. Mountain Standard Time (MST), 
in Phoenix, Arizona. Western will accept oral and written comments at a 
public comment forum that will be held on May 25, 2016, at 10:30 a.m. 
MST. 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 Western's Desert Southwest Customer Service Regional Office, 
located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Send written 
comments to Mr. Ronald E. Moulton, 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: Mr. Scott Lund, Rates 
Manager. Western will post information about the rate process, as well 
as comments received via letter, email, and fax, on its Web site at: 
http://www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-rates.aspx. 
Written comments must be received by the end of the consultation and 
comment period to be considered by Western in its decision process.
    As access to Western facilities is controlled, any United States 
(U.S.) citizen wishing to attend the forums must present an official 
form of picture identification (ID), such as a U.S. driver's license, 
U.S. passport, U.S. Government ID, or U.S. Military ID. Foreign 
nationals should contact Western via Mr. Scott Lund, Rates Manager, 
telephone (602) 605-2442 or email [email protected] 30 days in advance of 
the meeting to obtain the necessary form for admittance to Western.

FOR FURTHER INFORMATION CONTACT: Mr. Scott Lund, Rates Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, or email 
[email protected].

SUPPLEMENTARY INFORMATION: Rate Schedule BCP-F9 under Rate Order No. 
WAPA-171 was approved on an interim basis by the Deputy Secretary of 
Energy for a five-year period beginning on October 1, 2015, and ending 
September 30, 2020.\1\ Final approval is pending from the Federal 
Energy Regulatory Commission (FERC).
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    \1\ 80 FR 44098 (July 24, 2015).
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    The proposed base charge and rates for BCP electric service are 
designed to recover an annual revenue requirement that includes 
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 
divided equally between capacity and energy. The annual composite rate 
is the base charge divided by annual energy sales.
    Rate Schedule BCP-F9 requires the annual calculation of the base 
charge and rates based on updated financial and hydrology data. The 
proposed base charge for fiscal year (FY) 2017 is $68,572,989 and the 
proposed composite rate is 19.60 mills/kilowatthour. The following 
table compares the existing and proposed base charge and composite 
rate.

                       Comparison of Existing and Proposed Base Charge and Composite Rate
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                                                                     Existing        Proposed
                                                                    October 1,      October 1,
                                                                   2015 through    2016 through   Percent change
                                                                   September 30,   September 30,
                                                                       2016            2017
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Base Charge ($).................................................      63,735,856      68,572,989               8
Composite Rate (mills/kWh)......................................           18.33           19.60               7
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    The proposed FY 2017 base charge represents an increase of 
approximately 8 percent compared to the FY 2016 base charge. Increases 
in annual operation and maintenance and replacement costs, and 
decreases in projections of non-power revenue and carryover revenue 
account for the overall base charge increase.
    The proposed FY 2017 composite rate represents an increase of 
approximately 7 percent compared to the FY 2016 composite rate. 
Increases in the proposed base charge and forecasted energy sales 
account for the composite rate increase. This proposal, effective 
October 1, 2016, is preliminary and is subject to change upon 
publication of the final base charge and rates.

Legal Authority

    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 and follow 
procedures for public participation consistent with 10 CFR parts 903 
and 904.
    Western is establishing an electric service base charge and rates 
for BCP under the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152); the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as 
amended and supplemented by subsequent

[[Page 19171]]

enactments; and other acts that specifically apply to the project 
involved.
    By Delegation Order No. 00-037.00A, effective December 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 the Federal Energy Regulatory Commission.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents Western initiates or uses to develop the proposed base charge 
and rates are available for inspection and copying at the Desert 
Southwest Customer Service Regional Office, Western Area Power 
Administration, located at 615 South 43rd Avenue, Phoenix, Arizona 
85009. Many of these documents and supporting information are available 
on Western's Web site at: http://www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-rates.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969, 42 U.S.C. 4321-4347; the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western 
is in the process of determining whether an environmental assessment or 
an environmental impact statement should be prepared or if this action 
can be categorically excluded from those requirements.

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: March 28, 2016.
Mark A. Gabriel,
Administrator.
[FR Doc. 2016-07641 Filed 4-1-16; 8:45 am]
 BILLING CODE 6450-01-P