[Federal Register Volume 86, Number 172 (Thursday, September 9, 2021)]
[Notices]
[Pages 50530-50532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19395]


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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 Administrator, Southwestern Power Administration 
(Southwestern) has approved and placed into effect on an interim basis 
Rate Order No. SWPA-78, which extends the following existing 
Southwestern Sam Rayburn Dam Hydropower Project rate schedule: Rate 
Schedule SRD-15, Wholesale Rates for Hydro Power and Energy. This is an 
interim rate action effective October 1, 2021, extending for a period 
of two years through September 30, 2023.

DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-78 is October 1, 2021, through September 30, 2023.

FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice 
President and Chief Operating Officer, Office of Corporate Operations, 
Southwestern Power Administration, U.S. Department of Energy, One West 
Third Street, Tulsa, Oklahoma 74103, (918) 595-6684 or email: 
[email protected].

SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-78 is approved and 
placed into effect on an interim basis for the period October 1, 2021, 
through September 30, 2023, for the following Southwestern Sam Rayburn 
Dam rate schedule: Rate Schedule SRD-15, Wholesale Rates for Hydro 
Power and Energy.

Decision Rationale

    The Southwestern Administrator completed an annual review of the 
continuing adequacy of the existing rate schedule for the Sam Rayburn 
Dam. This review, as presented in the 2021 Sam Rayburn Dam Power 
Repayment Studies (PRSs), indicated the need for a 3.5 percent revenue 
increase to continue to satisfy cost recovery criteria. It is 
Southwestern 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 deferral of a revenue adjustment (rate 
change) provides for rate stability and savings on the administrative 
cost of implementation. The Administrator determined it to be prudent 
to defer the increase and allow the current rate schedule, which is set 
to expire September 30, 2021, to remain in effect.
    To ensure that Southwestern has a rate schedule in effect for 
collection of revenue in order to meet its repayment obligations, the 
Administrator has approved and placed into effect a two-year extension 
of the Sam Rayburn Dam rate schedule for the period October 1, 2021, 
through September 30, 2023.
    The Administrator followed part 903, subpart A of title 10 of the 
Code of Federal Regulations (CFR), ``Procedures for Public 
Participation in Power and Transmission Rate Adjustments and 
Extensions'' for the extension to the rate schedule. The public was 
informed by publication in the Federal Register (86 FR 31500 (June 14, 
2021)) of the proposed extension of the rate schedule and of the 
opportunity to provide written comments for a period of 30 days ending 
July 14, 2021. No comments were received.

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 the Southwestern 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 the Federal Energy Regulatory 
Commission (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. 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 Southwestern Administrator. This redelegation order, 
despite predating the February 2021 delegation and March 2021 
redelegation, 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)), the Administrator may approve and extend, on an 
interim basis, rates previously confirmed and approved by

[[Page 50531]]

FERC beyond the period specified by FERC.

Environmental Impact

    Southwestern previously determined that the rate change action, 
placed into effect on January 1, 2016 for Sam Rayburn Dam fit within 
the class of categorically excluded actions as listed in Appendix B to 
Subpart D of 10 CFR part 1021, the 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.

United States of America Department of Energy Administrator, 
Southwestern Power Administration

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

Rate Order
No. SWPA-78

Order Approving Extension of Rate Schedule on an Interim Basis

(August 30, 2021)
    Pursuant to Sections 301(b) and 302(a) of the Department of Energy 
Organization Act, 42 U.S.C. 7151(b) and 7152(a), 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, effective November 19, 2016, the Secretary of Energy 
delegated: (1) The authority to develop power and transmission rates to 
the Southwestern 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 the Federal Energy Regulatory Commission (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. 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 Southwestern Administrator. This 
redelegation order, despite predating the February 2021 delegation and 
March 2021 redelegation, 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)), the Southwestern Administrator may 
approve and extend, on an interim basis, rates previously confirmed and 
approved by FERC beyond the period specified by FERC. Pursuant to that 
delegated authority, the Southwestern Administrator 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

    Since initial FERC approval, the Assistant Secretary for 
Electricity extended the Sam Rayburn rate schedule SRD-15 for a period 
of two years, from October 1, 2019, through September 30, 2021, in Rate 
Order No. SWPA-75.

Discussion

    The existing Sam Rayburn Dam rate schedule is based on the 
Southwestern 2015 power repayment studies (PRSs). PRSs have been 
completed for the Sam Rayburn Dam isolated project each year since 
approval of the existing rate schedule. Since 2015, subsequent PRSs 
have indicated the need for a minimal rate increase, all within the 
plus or minus five percent rate adjustment threshold practice 
established by the Administrator on September 8, 2003. Therefore, the 
Administrator deferred these rate adjustments in the best interest of 
the government.
    However, the existing rate schedule is set to expire on September 
30, 2021. Consequently, Southwestern proposed to extend the existing 
rate schedule for a two-year period ending September 30, 2023, on an 
interim basis under the implementation authorities noted in 10 CFR 
903.22(h) and 10 CFR 903.23(a).
    Southwestern followed 10 CFR part 903, ``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 
published in the Federal Register on June 14, 2021 (86 FR 31500), with 
written comments due by July 14, 2021.

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. The rate schedule is available on the Southwestern 
website at www.swpa.gov.

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 2021 Sam Rayburn Dam PRSs indicated the need for an 
annual revenue increase of 3.5 percent. However, the 2021 rate 
adjustment falls within the Southwestern established plus or minus five 
percent isolated project rate adjustment threshold practice and was 
deferred.
    The Southwestern 2022 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

    Southwestern previously determined that the rate change actions, 
placed into effect on January 1, 2016 for Sam

[[Page 50532]]

Rayburn Dam, fit within the class of categorically excluded actions as 
listed in Appendix B to Subpart D of 10 CFR part 1021, the 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.

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 Administrator 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 schedules 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 delegated authority from 
the Secretary of Energy, I hereby extend on an interim basis, for the 
period of two years, effective October 1, 2021, through September 30, 
2023, the current Sam Rayburn Dam rate schedule:

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

Signing Authority

    This document of the Department of Energy was signed on August 30, 
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 September 2, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

United States Department of Energy

Southwestern Power Administration

Rate Schedule SRD-15 1 **
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    \1\ Supersedes Rate Schedule SRD-13.
    ** Extended through September 30, 2023, by approval of Rate 
Order No. SWPA-78 by the Administrator, Southwestern Power 
Administration.
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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, 2023,** in 
accordance with the Federal Energy Regulatory Commission (FERC) order 
issued in Docket No. EF16-2-000 (June 30, 2016), extension approved by 
the Assistant Secretary for Electricity in Rate Order No. 75 (Sept. 22, 
2019), and extension approved by the Administrator in Rate Order No. 78 
(August 30, 2021).

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 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, 2023.
    $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, 2023.

[FR Doc. 2021-19395 Filed 9-8-21; 8:45 am]
BILLING CODE 6450-01-P