[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Notices]
[Pages 61617-61619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24864]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam Power Rate Schedules
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
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[[Page 61618]]
SUMMARY: The Secretary of Energy acting under sections 301(b), 302(a),
402(e), 641, 642, 643, and 644, of the Department of Energy
Organization Act (P. L. 95-91) has approved and placed into effect on
an interim basis Rate Order No. SWPA-49 which decreases the power rate
for the Sam Rayburn Dam Project (Rayburn) pursuant to the following Sam
Rayburn Dam Rate Schedule:
Rate Schedule SRD-02, Wholesale Rates for Hydro Power and Energy
Sold to Sam Rayburn Dam Electric Cooperative, Inc., (Contract No.
DE-PM75-92SW00215)
FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant
Administrator, Office of Corporate Operations, Southwestern Power
Administration, Department of Energy, One West Third Street, Tulsa, OK
74103, (918) 595-6696, [email protected]
SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for
the Rayburn project is $2,077,632 per year. The rate was approved on a
final basis by the Federal Energy Regulatory Commission on October 22,
2001, for the period October 1, 2001, through September 30, 2005. The
FY 2002 Rayburn Power Repayment Studies indicate the need for a
decrease in the annual rate of $64,608, or 3.1 percent beginning
October 1, 2002.
The Administrator, Southwestern Power Administration (Southwestern)
has followed Title 10, Part 903 Subpart A, of the Code of Federal
Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions'' (Part 903) in connection
with the proposed rate schedule. On May 21, 2002, Southwestern
published notice in the Federal Register, 67 FR 35805, of a 90-day
comment period, together with a Public Information Forum and a Public
Comment Forum, to provide an opportunity for customers and other
interested members of the public to review and comment on a proposed
rate decrease for the Rayburn project. Both public forums were canceled
when no one expressed an intention to participate. Written comments
were accepted through August 19, 2002. Only one comment was received
from Gillis & Angley, Counselors at Law, on behalf of Sam Rayburn Dam
Electric Cooperative, Inc. (SRDEC), which stated that SRDEC (the sole
customer) had no objection to the proposed rate adjustment.
Information regarding this rate proposal, including studies and
other supporting material, is available for public review and comment
in the offices of Southwestern Power Administration, Suite 1400, One
West Third Street, Tulsa, Oklahoma 74103.
Following review of Southwestern's proposal within the Department
of Energy, I approved Rate Order No. SWPA-49, which decreases the
existing Rayburn rate to $2,013,024 per year for the period October 1,
2002, through September 30, 2006.
Dated: September 18, 2002.
Spencer Abraham,
Secretary.
[Rate Order No. SWPA-49]
In the matter of:
Order Confirming, Approving and Placing Decreased Power Rate Schedule
in Effect on an Interim Basis
Pursuant to sections 301(b), 302(a), 402(e), 641, 642, 643, and
644, 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, for the Southwestern Power Administration (Southwestern) was
transferred to and vested in the Secretary of Energy. By Delegation
Order No. 0204-108, effective December 14, 1983, 48 FR 55664, the
Secretary of Energy delegated to the Deputy Secretary of Energy on a
non-exclusive basis the authority to confirm, approve and place power
and transmission rates into effect on an interim basis, and delegated
to the Federal Energy Regulatory Commission (FERC) on an exclusive
basis the authority to confirm, approve and place in effect on a final
basis, or to disapprove power and transmission rates. Amendment No. 1
to Delegation Order No. 0204-108, effective May 30, 1986, 51 FR 19744,
revised the delegation of authority to confirm, approve and place into
effect on an interim basis power and transmission rates by delegating
such authority to the Under Secretary of Energy. This delegation was
reassigned to the Deputy Secretary of Energy by Department of Energy
(DOE) Notice 1110.29, dated October 27, 1988, and clarified by
Secretary of Energy Notice SEN-10-89, dated August 3, 1989, and
subsequent revisions. By Amendment No. 2 to Delegation Order No. 0204-
108, effective August 23, 1991, 56 FR 41835, the Secretary of the
Department of Energy delegated to the Assistant Secretary, Conservation
and Renewable Energy, the authority which was previously delegated to
the Deputy Secretary in that Delegation Order. By Amendment No. 3 to
Delegation Order No. 0204-108, effective November 10, 1993, the
Secretary of Energy re-delegated to the Deputy Secretary of Energy, the
authority to confirm, approve and place into effect on an interim basis
power and transmission rates of the Power Marketing Administrations. By
notice, dated April 15, 1999, the Secretary of Energy rescinded the
authority of the Deputy Secretary of Energy under Delegation Order No.
0204-108. By Delegation Order No. 0204-172, effective November 24,
1999, the Secretary of Energy again provided interim rate approval
authority to the Deputy Secretary of Energy. Pursuant to Delegation
Order No. 00-037.00, effective December 6, 2001, authority is delegated
to the Deputy Secretary of Energy for interim rate approval and to the
Federal Energy Regulatory Commission for final rate approval.
Delegation Order No. 0204-108 is no longer applicable to rates filed by
the Power Marketing Administrations. While presently there is no Deputy
Secretary; the Secretary of Energy possesses the necessary authority to
approve rates.
Background
The Sam Rayburn Dam Project (Rayburn) is located on the Angelina
River in the State of Texas in the Neches River Basin. Since the
beginning of its operation in 1965, it has been marketed as an isolated
project, under contract with Sam Rayburn Dam Electric Cooperative, Inc.
(Contract No. DE-PM75-92SW00215).
In the Federal Energy Regulatory Commission (FERC) Docket No. EF01-
4021-000, issued October 22, 2001, for the period October 1, 2001,
through September 30, 2005, the FERC confirmed and approved the current
annual Sam Rayburn Dam rate of $2,077,632.
Discussion
Southwestern's FY 2002 Current Power Repayment Study (PRS)
indicates that the existing annual power rate of $2,077,632 did not
represent the lowest possible rate needed to meet cost recovery
criteria. The reduced revenue requirement is due to a decrease in the
Corps of Engineers (Corps) and Southwestern operations and maintenance
expenses. The Revised PRS indicates that a decrease in annual revenues
of $64,608 beginning in FY 2003 is sufficient to accomplish repayment
of the Federal investment in the required number of years. Accordingly,
Southwestern developed a proposed rate schedule based on that decreased
revenue requirement.
Title 10, part 903, Subpart A of the Code of Federal Regulations,
[[Page 61619]]
``Procedures for Public Participation in Power and Transmission Rate
Adjustment,'' has been followed in connection with the proposed rate
adjustment. More specifically, opportunities for public review and
comment during a 90-day period on the proposed Rayburn power rate were
announced by notice published in the Federal Register, May 21, 2002, 67
FR 35805. A Public Information Forum was scheduled to be held June 6,
2002, and a Public Comment Forum was scheduled to be held July 10,
2002, both in Tulsa, Oklahoma. Both forums were canceled as no one
expressed an intent to participate. Written comments were due by August
19, 2002. Southwestern provided notice of the Federal Register,
together with supporting data, to the customer and interested parties
for review and comment during the formal period of public
participation. In addition, prior to the formal 90-day public
participation process, Southwestern met with the customer and the
customer representative to discuss the preliminary information on the
proposed rate adjustment. Only one formal comment was received from
Gillis & Angley, Counsellors at Law, on behalf of Sam Rayburn Dam
Electric Cooperative, Inc. (SRDEC), which stated that SRDEC (the sole
customer) had no objection to the proposed rate adjustment.
Upon conclusion of the comment period in August 2002, Southwestern
finalized the Power Repayment Study and rate schedule for the proposed
annual rate of $2,013,024 which is the lowest possible rate needed to
satisfy repayment criteria. This rate represents an annual decrease of
3.1 percent.
Information regarding this rate decrease, including studies and
other supporting material, is available for public review and comment
in the offices of Southwestern Power Administration, One West Third
Street, Tulsa, Oklahoma 74103.
Comments and Responses
Southwestern received one written comment in which the customer
representative expressed no objection to the proposed rate adjustment.
Other Issues
There were no other issues raised during the informal meeting or
during the formal public participation period.
Administrator's Certification
The FY 2002 Revised Rayburn PRS indicates that the annual power
rate of $2,013,024 will repay all costs of the project, including
amortization of the power investment consistent with provisions of the
Department of Energy (DOE) Order No.
RA 6120.2. In accordance with Delegation Order No. 00-037.00,
December 6, 2001, and Section 5 of the Flood Control Act of 1944, the
Administrator has determined that the proposed Rayburn power rate is
consistent with applicable law and the lowest possible rate consistent
with sound business principles.
Environment
The environmental impact of the rate decrease proposal was
evaluated in consideration of DOE's guidelines for implementing the
procedural provisions of the National Environmental Policy Act, 10 CFR
part 1021, and was determined to fall within the class of actions that
are categorically excluded from the requirements of preparing either an
Environmental Impact Statement or an Environmental Assessment.
Order
In view of the foregoing and pursuant to the authority delegated to
me, I hereby confirm, approve and place in effect on an interim basis,
for the period October 1, 2002, through September 30, 2006, the annual
Sam Rayburn Dam Rate of $2,013,024 for the sale of power and energy
from Sam Rayburn Dam to the Sam Rayburn Electric Cooperative, Inc.,
under Contract No. DE-PM75-92SW00215, dated October 7, 1992.
Dated: September 18, 2002.
Spencer Abraham,
Secretary.
[FR Doc. 02-24864 Filed 9-30-02; 8:45 am]
BILLING CODE 6450-01-P
