[Federal Register Volume 84, Number 120 (Friday, June 21, 2019)]
[Notices]
[Pages 29200-29201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13227]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System, Sam Rayburn Dam and Robert D. Willis Rate 
Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed extension and opportunity for public review 
and comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), is proposing a two-year extension to the currently 
approved rate schedules for the Integrated System, the Sam Rayburn Dam, 
and the Robert Douglas Willis Hydropower Project (Robert D. Willis) for 
the period October 1, 2019 to September 30, 2021. Southwestern's 
current Integrated System rate schedules (P-13A, NFTS-13A, and EE-13), 
Sam Rayburn Dam rate schedule (SRD-15), and Robert D. Willis rate 
schedule (RDW-15) are set to expire September 30, 2019.

DATES: The consultation and comment period will begin on June 21, 2019 
and will end on July 22, 2019. Written comments are due on or before 
July 22, 2019.

ADDRESSES: Comments should be submitted to Ms. Fritha Ohlson, Director, 
Division of Resources and Rates, Office of Corporate Operations, 
Southwestern Power Administration, U.S. Department of Energy, One West 
Third Street, Tulsa, Oklahoma 74103.

FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Director, Division 
of Resources and Rates, Office of Corporate Operations, (918) 595-6684, 
[email protected], or facsimile transmission (918) 595-6684.

SUPPLEMENTARY INFORMATION: Originally established by Order 1865, 
Secretary of the Interior, dated August 31, 1943 and effective 
September 1, 1943 (8 FR 12142 (Sept. 3, 1943)), Southwestern is an 
agency within the U.S. Department of Energy created by section 302 of 
the Department of Energy Organization Act, Public Law 95-91, dated 
August 4, 1977 (42 U.S.C. 7152). Guidelines for preparation of power 
repayment studies are included in DOE Order No. RA 6120.2 (Sept. 20, 
1979), entitled Power Marketing Administration Financial Reporting. 
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). Procedures for the confirmation and approval of rates for the 
Power Marketing Administrations are found at title 18, part 300, 
subpart L of the Code of Federal Regulations (18 CFR part 300).
    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 the costs associated with Southwestern's transmission 
facilities that consist of 1,380 miles of high-voltage transmission 
lines, 27 substations, and 46 microwave and VHF radio sites. Costs 
associated with Sam Rayburn Dam and Robert D. Willis, two Corps 
hydropower projects that are isolated hydrologically, electrically, and 
financially from the Integrated System, are repaid by separate rate 
schedules.

Decision Rationale

    Southwestern's current Integrated System rate schedules (P-13A, 
NFTS-13A, and EE-13) are based on the 2013 Power Repayment Study (PRS). 
Each subsequent annual PRS, through 2019, has indicated the need for a 
revenue adjustment that fell within a two percent range of the current 
revenue estimate. It is Southwestern's established practice for the 
Administrator to defer, on a case by case basis, revenue adjustments 
for the Integrated System if such adjustments are within plus or minus 
two percent of the revenue estimated from the current Integrated System 
rate schedules. Therefore, in line with the annual PRS results, the 
Administrator has deferred revenue adjustments in 2014, 2015, 2016, 
2017, 2018, and 2019. The most recent deferral was in response to the 
2019 Integrated System PRS, which concluded that the annual revenues 
needed to be increased by 0.8 percent. It was determined to be prudent 
to defer the increase and allow the current Integrated System rate 
schedules, which are set to expire September 30, 2019, to remain in 
effect. The deferral of a revenue adjustment (rate change) provides for 
rate stability and savings on the administrative cost of 
implementation, and recognizes that the revenue sufficiency will be re-
examined in the following year's PRS.
    Similarly, Southwestern's current rate schedules for the Sam 
Rayburn Dam and Robert D. Willis isolated rate systems, SRD-15 and RDW-
15, are based on their respective 2015 PRSs. Each subsequent annual 
PRS, through 2019, has indicated the need for a revenue adjustment 
within a five percent range of the current revenue estimate. It is 
Southwestern's established practice for the Administrator to defer, on 
a case by case basis, revenue adjustments for an isolated rate system 
if such adjustments are within plus or minus five percent of the 
revenue estimated from the current rate schedule. Therefore, in line 
with the annual PRS results, the Administrator has deferred revenue 
adjustments for both Sam Rayburn Dam and Robert D. Willis in 2016, 
2017, 2018, and 2019. The most recent deferral was in response to the 
2019 PRSs, which concluded that the annual revenues needed to be 
increased by 1.7 percent for Sam Rayburn Dam and 3.7 percent for Robert 
D. Willis. It was determined to be prudent to defer the

[[Page 29201]]

increase and allow the current rate schedules, which are set to expire 
September 30, 2019, to remain in effect. The deferral of a revenue 
adjustment (rate change) provides for rate stability and savings on the 
administrative cost of implementation and recognizes that the revenue 
sufficiency will be re-examined in the following year's PRS.
    Therefore, Southwestern is proposing an extension of all current 
rate schedules, for the period October 1, 2019 to September 30, 2021. 
In accordance with 10 CFR 903.22(h), 903.23(a)(3), and 903.23(b), as 
amended (84 FR 5347 (Feb. 21, 2019)), and DOE Redelegation Order No. 
00-002.10D (June 4, 2019), the Assistant Secretary may extend existing 
and provisional rates on an interim basis beyond the period specified 
by the Federal Energy Regulatory Commission (FERC).
    The Integrated System rate schedules (P-13, NFTS-13 and EE-13) were 
placed into effect on an interim basis by the Deputy Secretary of 
Energy effective September 1, 2013, and were confirmed and approved by 
FERC on a final basis on January 9, 2014, for a period that ended 
September 30, 2017. Subsequently, a new section 2.3.6 was added to the 
Non-Federal Transmission Service (NFTS) rate schedule NFTS-13 in order 
to replace a stated-rate for customers taking Southwest Power Pool 
(SPP) Network Integration Transmission Service (NITS) with a revenue-
requirement based methodology that includes determining the SPP NITS 
Annual Revenue Requirement (ARR) portion of Southwestern's NFTS ARR. 
The change had no impact on Southwestern's Integrated System revenue 
requirements and the rate schedule was re-designated NFTS-13A to 
reflect the change to the initial rate schedule. The NFTS-13A rate 
schedule change was placed into effect on an interim basis by the 
Deputy Secretary of Energy effective January 1, 2017, and confirmed and 
approved on a final basis by FERC on March 9, 2017, under FERC Docket 
No. EF14-1-001. A two-year extension of all Integrated System rate 
schedules was approved on an interim basis September 13, 2017, by the 
Deputy Secretary for the period October 1, 2017 through September 30, 
2019. Since the Integrated System rate schedules were placed into 
effect and subsequently extended, there has been one additional change 
with no impact on revenue requirements. Southwestern added section 4.2 
within the Hydro Peaking Power rate schedule P-13 in order to effect a 
uniform shift in the time Southwestern requires its customers to submit 
Peaking Energy schedules. The rate schedule was re-designated P-13A to 
reflect the change to the initial rate schedule. The P-13A rate 
schedule change was placed into effect on an interim basis by the 
Assistant Secretary effective July 1, 2019, and has been submitted to 
FERC for confirmation and approval on a final basis.
    The current Sam Rayburn Dam rate schedule (SRD-15) was placed into 
effect on an interim basis by the Deputy Secretary on December 17, 
2015, and was confirmed and approved by the FERC on a final basis on 
June 30, 2016, for a period that ends September 30, 2019.
    The current Robert D. Willis rate schedule (RDW-15) was placed into 
effect on an interim basis by the Deputy Secretary of Energy on 
December 17, 2015, and was confirmed and approved by the FERC on a 
final basis on June 15, 2016, for a period that ends September 30, 
2019.
    The Administrator will review and consider all written comments and 
the information gathered when submitting the finalized Rate Schedules 
Extension to the Assistant Secretary for confirmation and approval on 
an interim basis.

    Dated: June 13, 2019.
Mike Wech,
Administrator.
[FR Doc. 2019-13227 Filed 6-20-19; 8:45 am]
BILLING CODE 6450-01-P