[Federal Register Volume 86, Number 112 (Monday, June 14, 2021)]
[Notices]
[Pages 31500-31502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12425]


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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 rate schedules 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 of October 1, 2021 to September 30, 2023. Southwestern's 
current Integrated System rate schedules (P-13A, NFTS-13A, and EE-13), 
the Sam Rayburn Dam rate schedule (SRD-15), and the Robert D. Willis 
rate schedule (RDW-15), expire September 30, 2021.

DATES: The consultation and comment period will begin on June 14, 2021 
and will end on July 14, 2021. Written comments are due on or before 
July 14, 2021.

ADDRESSES: Comments should be submitted to Ms. Fritha Ohlson, Senior 
Vice President and Chief Operating Officer, Southwestern Power 
Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma 74103.

FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice 
President, Chief Operating Officer, 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

[[Page 31501]]

authorized by Congress to market the hydroelectric power and energy 
from Federal dams controlled by the U.S. Army Corps of Engineers 
(Corps), pursuant to Section 302(a)(1) of the Department of Energy 
Organization Act (42 U.S.C. 7152(a)(1)), Section 5 of the Flood Control 
Act of 1944 (16 U.S.C. 825s), and Public Law 95-456 (16 U.S.C. 825s-3). 
Guidelines for preparation of power repayment studies are included in 
Department of Energy (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, approval, and extension 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 
Corps. These projects are located in Arkansas, Missouri, Oklahoma, and 
Texas. Southwestern's marketing area includes these states, plus Kansas 
and Louisiana. The costs associated with 22 of these 24 hydropower 
projects are repaid with revenues received under Southwestern's 
Integrated System rates. These rates also cover the costs of 
Southwestern's transmission facilities that consist of 1,380 miles of 
high voltage transmission lines, 27 substations, and 46 microwave and 
VHF radio sites. Additionally, Southwestern markets power from two 
hydropower projects in southeastern Texas, Sam Rayburn Dam and Robert 
D. Willis. These projects are isolated hydrologically, electrically, 
and financially from the Integrated System and are repaid via separate 
rate schedules.
    On September 30, 2013, in Rate Order No. SWPA-66, the Deputy 
Secretary of Energy placed into effect Southwestern's Integrated System 
rate schedules (P-13, NFTS-13, and EE-13) on an interim basis for the 
period October 1, 2013 to September 30, 2017. The Federal Energy 
Regulatory Commission (FERC) confirmed and approved Southwestern's 
interim Integrated System rates on a final basis on January 9, 2014 for 
a period ending September 30, 2017.
    Southwestern re-designated Integrated System rate schedule ``NFTS-
13'' as ``NFTS-13A'' with no revenue adjustment. In Rate Order No. 
SWPA-71, the Deputy Secretary of Energy placed into effect 
Southwestern's rate schedule NFTS-13A on an interim basis beginning 
January 1, 2017. FERC confirmed and approved NFTS-13A on a final basis 
on March 9, 2017.
    On September 13, 2017, in Rate Order No. SWPA-72, the Deputy 
Secretary of Energy extended all of Southwestern's Integrated System 
rate schedules (P-13, NTFS-13A, and EE-13) for two years, for the 
period of October 1, 2017 through September 30, 2019.
    Southwestern re-designated Integrated System rate schedule ``P-13'' 
as ``P-13A'' with no revenue adjustment. In Rate Order No. SWPA-73, the 
Assistant Secretary for Electricity placed into effect Southwestern's 
rate schedule for P-13A on an interim basis beginning July 1, 2019. 
FERC confirmed and approved P-13A on a final basis on August 29, 2019.
    On September 22, 2019, in Rate Order No. SWPA-74, the Assistant 
Secretary for Electricity extended all of Southwestern's Integrated 
System rate schedules (P-13A, NFTS-13A, EE-13) for two years, for the 
period of October 1, 2019 through September 30, 2021.
    On December 17, 2015, in Rate Order No. SWPA-69, the Deputy 
Secretary of Energy placed into effect the current Sam Rayburn Dam rate 
schedule (SRD-15) on an interim basis for the period January 1, 2016 to 
September 30, 2019. FERC confirmed and approved SRD-15 on a final basis 
on June 30, 2016 for a period ending September 30, 2019. On September 
22, 2019, in Rate Order No. SWPA-75, the Assistant Secretary for 
Electricity approved a two-year extension to SRD-15 on an interim basis 
through September 30, 2021.
    On December 17, 2015, in Rate Order No. SWPA-70, the Deputy 
Secretary of Energy placed into effect the current Robert D. Willis Dam 
rate schedule (RDW-15) on an interim basis for the period January 1, 
2016 to September 30, 2019. FERC confirmed and approved the rate on a 
final basis on June 15, 2016 for a period ending September 30, 2019. On 
September 22, 2019, in Rate Order No. SWPA-76, the Assistant Secretary 
for Electricity approved a two-year extension to RDW-15 on an interim 
basis through September 30, 2021.

Decision Rationale

    Southwestern is proposing an extension of the above current rate 
schedules, for the period October 1, 2021 through September 30, 2023. 
The Administrator will review and consider all timely written comments 
at the end of the public review and comment period and adjust the rate 
schedules extension proposal as appropriate.
    Southwestern's current Integrated System rate schedules (P-13A, 
NFTS-13A, and EE-13) are based on its 2013 Power Repayment Study (PRS). 
Southwestern has conducted PRSs annually thereafter through 2021. Each 
PRS indicated a need for a revenue adjustment that fell within a plus 
or minus two percent range of the revenue estimate based on the current 
rate schedules. It is Southwestern's practice for the Administrator to 
defer, on a case-by-case basis, revenue adjustments for the Integrated 
System within plus or minus two percent from the revenue estimate based 
on the current rate schedules. The deferral of a revenue adjustment 
(rate change) provides for rate stability and savings on the 
administrative cost of implementation. Thus, the Administrator has 
deferred revenue adjustments annually through 2021.
    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, including the 
2021 PRS, indicated the need for a revenue adjustment within a plus or 
minus five percent range of the current revenue estimate. It is 
Southwestern's practice for the Administrator to defer, on a case-by-
case basis, revenue adjustments for isolated rate systems that are 
within plus or minus five percent of the revenue estimated from the 
current rate schedule. Therefore, the Administrator deferred revenue 
adjustments annually for Sam Rayburn Dam and Robert D. Willis through 
2021.

Legal Authority

    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
the Secretary of Energy delegated: (1) The authority to develop power 
and transmission rates to Southwestern'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, or to 
remand or disapprove such rates, to FERC. By Delegation Order No. S1-
DEL-S4-2021, effective February 25, 2021, the Acting Secretary of 
Energy also delegated the authority to confirm, approve, and place such 
rates into effect on an interim basis to the Under Secretary for 
Science (and Energy). By Redelegation Order No. S4-DEL-OE1-2021, 
effective March 25, 2021, the Acting Under Secretary for Science (and 
Energy) redelegated the authority to confirm, approve, and place such 
rates into effect on an interim basis to the Assistant Secretary for 
Electricity.

[[Page 31502]]

And by Redelegation Order No. 00-002.10-04, effective July 8, 2020, the 
Assistant Secretary for Electricity further redelegated the authority 
to confirm, approve, and place such rates into effect on an interim 
basis to the Administrator, Southwestern Power Administration. This 
redelegation order, despite predating the February 2021 and March 2021 
redelegations, remains valid. By these delegations, and in accordance 
with 10 CFR 903.22(h) and 10 CFR 903.23(a), as amended (84 FR 5347, 
5350 (Feb. 21, 2019)), Southwestern's Administrator may approve and 
extend, on an interim basis, rates previously confirmed and approved by 
FERC beyond the period specified by FERC.

Environmental Impact

    Southwestern previously determined that the rate change actions, 
placed into effect on October 1, 2013 for the Integrated System and on 
January 1, 2016 for Sam Rayburn Dam and Robert D. Willis, fit within 
the class of categorically excluded actions as listed in Appendix B to 
Subpart D of 10 CFR part 1021, DOE's Implementing Procedures and 
Guidelines of the National Environmental Policy Act of 1969, as amended 
(42 U.S.C. 4321-4347): Categorical exclusions applicable to B4.3: 
Electric power marketing rate changes, which does not require 
preparation of either an environmental impact statement (EIS) or an 
environmental assessment (EA). On May 27, 2021, Southwestern determined 
that categorical exclusion B4.3 applies to the current action.

Determination Under Executive Order 12866

    Southwestern 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.

Signing Authority

    This document of the Department of Energy was signed on June 4, 
2021, by Mike Wech, Administrator for Southwestern Power 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document, with the original signature and date, is 
maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of DOE. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on June 9, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-12425 Filed 6-11-21; 8:45 am]
BILLING CODE 6450-01-P