[Federal Register Volume 84, Number 189 (Monday, September 30, 2019)]
[Notices]
[Pages 51551-51553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21041]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Rate Schedule

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of extension of Sam Rayburn Dam rate schedule.

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SUMMARY: The Assistant Secretary for Electricity has approved and 
placed into effect on an interim basis Rate Order No. SWPA-75, which 
extends the following existing Sam Rayburn Dam rate schedule for the 
Southwestern Power Administration: Rate Schedule SRD-15, Wholesale 
Rates for Hydro Power and Energy. This is an interim rate action 
effective October 1, 2019, extending for a period of two years through 
September 30, 2021.

DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-75 is October 1, 2019 through September 30, 2021.

FOR FURTHER INFORMATION CONTACT: 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, (918) 595-6684, [email protected], or 
facsimile transmission (918) 595-6684.

SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00-
037.00B, effective November 19, 2016, and 00-002.00Q, effective 
November 1, 2018, and Redelegation Order No. 00-002.10D, effective June 
4, 2019, and pursuant to the implementation authorities in 10 CFR 
903.22(h), 10 CFR 903.23(a)(3), and 10 CFR 903.23(b), as amended (84 FR 
5347 (Feb. 21, 2019)), Rate Order No. SWPA-75 is approved and placed 
into effect on an interim basis for the period October 1, 2019 through 
September 30, 2021, for the following Southwestern Power Administration 
(Southwestern) Sam Rayburn Dam rate schedule:

Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy

    The Sam Rayburn Dam rate schedule (SRD-15) was placed into effect 
on an interim basis by the Deputy Secretary and was confirmed and 
approved on a final basis by the Federal Energy Regulatory Commission 
(FERC) on June 30, 2016, in Docket No. EF16-2-000 (155 FERC ] 62,254) 
for the period January 1, 2016 through September 30, 2019. The 2019 Sam 
Rayburn Dam power repayment studies (PRSs) indicated the need for a 1.7 
percent revenue increase to continue to satisfy cost recovery criteria. 
It is Southwestern's established practice for the Administrator to 
defer, on a case by case basis, revenue adjustments for an isolated 
project if such adjustments are within plus or minus five percent of 
the revenue estimated from the current rate schedule. The Administrator 
determined it to be prudent to defer the increase and allow the current 
rate schedule, which is set to expire September 30, 2019, to remain in 
effect.
    The deferral of a revenue adjustment 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 PRSs. Therefore, the Administrator proposes the two-
year extension of the Sam Rayburn Dam rate schedule for the period 
October 1, 2019 through September 30, 2021.
    The Administrator has followed part 903, subpart A of Title 10 of 
the Code of Federal Regulations, ``Procedures for Public Participation 
in Power and Transmission Rate Adjustments and Extensions'' for the 
proposed extension to the rate schedule. The public was advised by 
notice published in the Federal Register (84 FR 29200 (June 21, 2019)) 
of the proposed extension of the rate schedules and of the opportunity 
to provide written comments for a period of 30 days ending July 22, 
2019. No comments were received.
    Information regarding the extension of this rate schedule, 
including the rate schedule and other supporting material, is available 
for public review in the offices of Southwestern Power Administration, 
Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103. I have 
reviewed the Southwestern proposal and I approve Rate Order No. SWPA-
75.

    Dated: September 22, 2019.
Bruce J. Walker,
Assistant Secretary for Electricity.

UNITED STATES OF AMERICA DEPARTMENT OF ENERGY ASSISTANT SECRETARY

    In the matter of: Southwestern Power Administration, Sam Rayburn 
Dam Rate Schedule

Rate Order

No. SWPA-75

ORDER APPROVING EXTENSION OF RATE SCHEDULE ON AN INTERIM BASIS

( September 22, 2019 )
    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 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. 00-037.00B, the 
Secretary of Energy delegated to the Administrator of Southwestern 
(Administrator) the authority to develop power and transmission rates, 
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. By 
Delegation Order No. 00-002.00Q, the Secretary of Energy delegated to 
the Under Secretary (of Energy) the authority to confirm, approve, and 
place into effect on an interim basis rates developed by the 
Administrator under delegation. By Redelegation Order No. 00-002.10D, 
the Under Secretary (of Energy) redelegated to the Assistant Secretary 
for Electricity (Assistant Secretary) the authority to confirm, 
approve, and place into effect such rates on an interim basis. Pursuant 
to that delegated authority, the Assistant Secretary has issued this 
interim rate order.

BACKGROUND

    The following rate schedule for Sam Rayburn Dam was confirmed and 
approved on a final basis by FERC on June 30, 2016 in Docket No. EF16-
2-000 (155 FERC ] 62,254) for the period January 1, 2016 through 
September 30, 2019.

Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy

DISCUSSION

    The existing Sam Rayburn Dam rate schedule is based on the 2015 
power

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repayment studies (PRSs). PRSs have been completed on the Sam Rayburn 
Dam isolated project each year since approval of the existing rate 
schedule. The estimated revised annual revenue identified by the 
subsequent PRSs since the 2015 PRSs has indicated the need for minimal 
rate increases. Since the revenue changes reflected by the subsequent 
PRSs were all within the plus or minus five percent isolated project 
rate adjustment threshold practice established by the Administrator on 
September 8, 2003, these rate adjustments were deferred in the best 
interest of the government.
    However, the existing rate schedule is set to expire on September 
30, 2019. Consequently, Southwestern proposed to extend the existing 
rate schedule for a two-year period ending September 30, 2021, on an 
interim basis under the implementation authorities noted in 10 CFR 
903.22(h) and 10 CFR 903.23(a)(3).
    Southwestern followed Part 903 of Title 10 of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' for the proposed 
extension of the rate schedule. An opportunity for customers and other 
interested members of the public to review and comment on the proposed 
extension of the rate schedule was announced by notice published in the 
Federal Register on June 21, 2019 (84 FR 29200), with written comments 
due by July 22, 2019.

COMMENTS AND RESPONSES

    Southwestern received no comments regarding the extension of the 
rate schedule.

AVAILABILITY OF INFORMATION

    Information regarding the extension of the rate schedule is 
available for public review in the offices of Southwestern Power 
Administration, Williams Tower I, One West Third Street, Tulsa, 
Oklahoma 74103.

ADMINISTRATION'S CERTIFICATION

    The 2015 Sam Rayburn Dam PRSs indicated that the current rate 
schedule will repay all costs, including amortization of the power 
investment consistent with the provisions of Department of Energy Order 
No. RA 6120.2. The 2019 Sam Rayburn Dam PRSs indicated the need for an 
annual revenue increase of 1.7 percent. However, the 2019 rate 
adjustment falls within Southwestern's established plus or minus five 
percent isolated project rate adjustment threshold practice and was 
deferred.
    Southwestern's 2020 PRSs will determine the appropriate level of 
revenues needed for the next rate period. In accordance with Delegation 
Order No. 00-037.00B, effective November 19, 2016, and Section 5 of the 
Flood Control Act of 1944, the Administrator has determined that the 
existing rate schedule is the lowest possible rate consistent with 
sound business principles, and the extension is consistent with 
applicable law.

ENVIRONMENT

    The Southwestern NEPA Compliance Officer determined that this class 
of actions is categorically excluded from the requirements of preparing 
either an Environmental Impact Statement or an Environmental 
Assessment. No additional evaluation of the environmental impact of the 
extension of the existing rate schedule was conducted, since no change 
in anticipated revenues has been made to the currently-approved rate 
schedule.

ADMINISTRATIVE PROCEDURES

    Under the Administrative Procedure Act (5 U.S.C. 553(d)), 
publication or service of a substantive rule must be made not less than 
30 days before its effective date, except (1) a substantive rule that 
grants or recognizes an exemption or relieves a restriction; (2) 
interpretative rules and statements of policy; or (3) as otherwise 
provided by the agency for good cause found and published with the 
rule. The Assistant Secretary finds good cause to waive the 30-day 
delay in the effective date of this action as unnecessary for the 
following reasons: 1) this is an extension of rates previously approved 
by FERC, pursuant to 10 CFR 903.23(a); 2) there are no substantive 
changes, as the existing rate schedule and anticipated revenues remain 
the same; and 3) the Administrator provided notice and opportunity for 
public comment more than 30 days prior to the effective date of the 
rate extension and received no comments.

ORDER

    In view of the foregoing, and pursuant to the authority redelegated 
to me by the Under Secretary (of Energy), I hereby extend on an interim 
basis, for the period of two years, effective October 1, 2019 through 
September 30, 2021, the current Sam Rayburn Dam rate schedule:

Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy

Dated: September 22, 2019

Bruce J. Walker

Assistant Secretary for Electricity

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE SRD-15\1\ **

    \1 \ Supersedes Rate Schedule SRD-13
    ** Extended through September 30, 2021, by approval of Rate 
Order No. SWPA-75 by the Assistant Secretary for Electricity.
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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, 2021 **, 
in accordance with Federal Energy Regulatory Commission (FERC) order 
issued in Docket No. EF16-2-000 (June 30, 2016) and extension approved 
by the Assistant Secretary in Rate Order No. 75.

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, as amended, for the sale of all Hydro 
Power and Energy generated at the Sam Rayburn Dam and Reservoir.

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. This rate 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

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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, 2021

$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, 2021.

[FR Doc. 2019-21041 Filed 9-27-19; 8:45 am]
BILLING CODE 6450-01-P