[Federal Register Volume 89, Number 169 (Friday, August 30, 2024)]
[Notices]
[Pages 70627-70629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19564]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam--Rate Order No. SWPA-84

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate order.

-----------------------------------------------------------------------

SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has confirmed, approved and placed into effect on an 
interim basis Rate Order No. SWPA-84 (Rate Order), which provides the 
rate schedule Wholesale Rates for Hydro Power and Energy at Sam Rayburn 
Dam and Reservoir (SRD-23). This new rate schedule for the Sam Rayburn 
Dam and Reservoir (Rayburn) replaces the existing power rate under Rate 
Schedule SRD-15 which expires on September 30, 2024. Rate Schedule SRD-
23 increases the annual wholesale power rate for Rayburn by 21.1 
percent.

DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-84 is October 1, 2024, through September 30, 2027, 
pending confirmation and approval by the Federal Energy Regulatory 
Commission (FERC) on a final basis, or until superseded.

FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice 
President, Chief Operating Officer, Southwestern Power Administration, 
(918) 595-6646 or [email protected].

SUPPLEMENTARY INFORMATION: On June 30, 2016, FERC confirmed and 
approved Rate Schedule SRD-15 under Rate Order No. SWPA-69 on a final 
basis through September 30, 2019. Rate Schedule SRD-15 was subsequently 
extended through September 30, 2024. Southwestern published a Federal 
Register notice (Proposed FRN) on December 5, 2023 (87 FR 84318), 
proposing to increase the annual rate by approximately 21.10% from 
$4,563,792 to $5,526,588. The Proposed FRN also initiated a 90-day 
public consultation and comment period and set the date of the public 
information and public comment forum to be January 17, 2024. No written 
comments were received and there were no outstanding comments or 
questions from the public information and public comment forum.
    Following review of the proposal, Rate Order No. SWPA-84, which 
provides the rate for the hydro power and energy from Sam Rayburn Dam 
and Reservoir, is hereby confirmed, approved, and placed into effect on 
an interim basis. Southwestern will submit Rate Order No. SWPA-84 to 
FERC for confirmation and approval on a final basis.

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-84

[[Page 70628]]

Order Confirming, Approving, and Placing the Sam Rayburn Dam Rate 
Schedule in Effect on an Interim Basis (8/26/2024)

    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. S1-
DEL-RATES-2016, 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 the Federal Energy Regulatory Commission (FERC). By 
Delegation Order No. S1-DEL-S3-2023, effective April 10, 2023, the 
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 Infrastructure. By Redelegation Order No. S3-DEL-SWPA1-
2023, effective April 10, 2023, the Under Secretary for Infrastructure 
redelegated the authority to confirm, approve, and place such rates 
into effect on an interim basis to the Southwestern Administrator.

Background

    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 extended SRD-15 for two years, for the period of 
October 1, 2019, through September 30, 2021. On August 30, 2021, in 
Rate Order No. SWPA-78, the Administrator, Southwestern, extended SRD-
15 for two years, for the period of October 1, 2021, through September 
30, 2023. On September 20, 2023, in Rate Order No. SWPA-82, the 
Administrator, Southwestern, extended SRD-15 for one year, for the 
period of October 1, 2023, through September 30, 2024, and FERC issued 
an ordering accepting the extension on January 18, 2024.

Discussion

    Southwestern's current rate schedule for the Sam Rayburn Dam 
isolated rate system, SRD-15, is based on the 2015 Power Repayment 
Studies (PRS). Each subsequent annual PRS through 2022 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 
through 2022. Southwestern prepared a 2023 Current PRS which indicated 
that the existing power rate would not satisfy present financial 
criteria regarding repayment of investment within a 50-year period due 
to increased operations and maintenance expenses as well as increase 
cost of replacements in the hydroelectric generating facilities. The 
2023 Revised PRS indicates the need for an increase in annual revenues 
of $962,796 (21.1 percent) is necessary, to accomplish repayment in the 
required number of years. Accordingly, Southwestern has prepared a new 
proposed rate schedule (SRD-23) based on the additional revenue 
requirement to ensure repayment.
    Southwestern conducted the rate adjustment proceeding in accordance 
with title 10, part 903, subpart A of the Code of Federal Regulations 
(10 CFR part 903), ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions.'' Opportunities for 
public review and comment during a 90-day period on the proposed Sam 
Rayburn Dam power rate were announced by a Federal Register notice 
published on December 5, 2023 (88 FR 84318), with written comments due 
March 4, 2024. A combined public information and comment forum was held 
virtually on January 17, 2024. Southwestern published the Federal 
Register notice, the proposed rate schedule, and the draft 2023 PRS on 
its website for customers and interested parties to review and comment 
upon during the public comment period.
    Following the conclusion of the comment period on March 4, 2024, 
Southwestern finalized the Power Repayment Studies and Rate Schedule 
SRD-23 for the proposed annual rate of $5,526,588 which is the lowest 
possible rate needed to satisfy the repayment criteria set forth within 
the provisions of U.S. Department of Energy (DOE) Order No. RA 6120.2. 
This rate represents an annual increase of 21.1 percent. The 
Administrator made the decision to approve the rate proposal for 
implementation.
    Southwestern will continue to perform its Power Repayment Studies 
annually, and if the 2024 results should indicate the need for 
additional revenues, another rate adjustment proceeding will be 
conducted to implement the updated revenue requirements.

Comments and Responses

    Southwestern did not receive any written comments during the 90-day 
public review and comment period. Southwestern did receive oral 
comments from Mr. James Striedel of GDS Associates, representing Sam 
Rayburn Dam Electrical Cooperative, Inc., during Southwestern's January 
17, 2024, public information and comment forum which are summarized 
below. The comments are also included verbatim as part of the 
transcript of the public comment forum which will be submitted to FERC 
along with other applicable documents for final confirmation and 
approval of Rate Schedule SRD-23.
    Mr. Striedel was the only member of the public who attended the 
public comment forum. Mr. Striedel commended Southwestern for its 
diligence in managing costs and asked three questions. First, Mr. 
Striedel asked Southwestern to confirm that the power repayment study 
(PRS) estimate of U.S. Army Corps of Engineers (Corps) operations and 
maintenance costs includes an estimate of the reduction in cost for 
centralized dispatch of Sam Rayburn Dam. Southwestern confirmed this in 
the affirmative. Second, Mr. Striedel asked for confirmation that the 
PRS does not include costs for transformers that were gifted by 
customers to the Corps. Southwestern confirmed this in the affirmative. 
Finally, Mr. Striedel asked for confirmation that the PRS does not 
include transmission cost from the Blakely Mountain and DeGray projects 
to the system of Southwestern. Southwestern confirmed this in the 
affirmative.

Availability of Information

    Information regarding the rate adjustment proceeding, including the 
Final 2023 PRS and Rate Proposal, for Rate Schedule SRD-23 is available 
for public review in the offices of Southwestern Power Administration, 
Williams Tower I, One West Third

[[Page 70629]]

Street Suite 1500, Tulsa, Oklahoma 74103. Rate Schedule SRD-23 is 
available on Southwestern's website at www.energy.gov/swpa/rates-and-repayment.

Certification of Rates

    I have certified that the provisional rate under Rate Schedule SRD-
23 is the lowest possible rate consistent with sound business 
principles. The rate was developed following administrative policies 
and applicable laws.

Ratemaking Procedure Requirements

Environmental Compliance

    Southwestern has determined that this action fits within the 
following categorical exclusions listed in appendix B to subpart D of 
10 CFR 1021.410: B4.3 (Electric power marketing rate changes). 
Categorically excluded projects and activities do not require 
preparation of either an environmental impact statement or an 
environmental assessment. A copy of the categorical exclusion 
determination is available on Southwestern's website at https://www.energy.gov/swpa/southwestern-power-administration.

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.

Submission to the Federal Energy Regulatory Commission

    Rate Schedule SRD-23 herein confirmed, approved, and placed into 
effect on an interim basis, together with supporting documents, will be 
submitted to FERC for confirmation and final approval.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm, approve and place in 
effect on an interim basis, effective October 1, 2024, Rate Schedule 
SRD-23, Wholesale Rates for Hydro Power and Energy at Sam Rayburn Dam 
and Reservoir. The rate schedule shall remain in effect on a temporary 
basis through September 30, 2027, or until the FERC confirms and 
approves the rate on a final basis, or until it is superseded by a 
subsequent rate.

Signing Authority

    This document of the Department of Energy was signed on August 26, 
2024, by Michael S. 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 August 27, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

Rate Schedule SRD-23 1
---------------------------------------------------------------------------

    \1\ Supersedes Rate Schedule SRD-15
---------------------------------------------------------------------------

Wholesale Rates for Hydro Power and Energy

At Sam Rayburn Dam and Reservoir

Effective

    During the period October 1, 2024, through September 30, 2027, in 
accordance with interim approval from Rate Order No. SWPA-84 issued by 
the Administrator on October 1, 2024, and pursuant to final approval by 
the Federal Energy Regulatory Commission.

Applicable

    To wholesale customers which have contractual rights from 
Southwestern Power Administration (Southwestern) to purchase the 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 from the Sam Rayburn Dam 
and Reservoir; 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 the customer(s), 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 October 1, 2024, through 
September 30, 2027
    $460,549 per month ($5,526,588 per year) for Sam Rayburn Dam Hydro 
Power and Energy purchased from October 1, 2024, through September 30, 
2027.

[FR Doc. 2024-19564 Filed 8-29-24; 8:45 am]
BILLING CODE 6450-01-P