[Federal Register Volume 64, Number 240 (Wednesday, December 15, 1999)]
[Notices]
[Pages 70010-70011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32468]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Rate Schedules
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of rate order.
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SUMMARY: Pursuant to Sections 301(b) and 302(a) of the Department of
Energy Organization Act (Pub. L. 95-91) and Section 5 of the Flood
Control Act of 1944 (16 U.S.C. 825s) the Deputy Secretary of the
Department of Energy has approved and placed into effect on an interim
basis Rate Order No. SWPA-42 which provides the following Integrated
System Rate Schedules:
--Rate Schedule P-98C, Wholesale Rates for Hydro Peaking Power
--Rate Schedule NFTS-98C, Wholesale Rates for Non-Federal Transmission
Service
FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant
Administrator, Office of Corporate Operations, Southwestern Power
Administration, Department of Energy, PO Box 1619, Tulsa, OK 74101,
(918) 595-6696, reeves@swpa.gov.
SUPPLEMENTARY INFORMATION: The FY 1999 Power Repayment Studies for the
Integrated System indicate that rates prescribed by Rate Schedules P-
98B, Wholesale Rates for Hydro Peaking Power, and NFTS-98B, Wholesale
Rates for Non-Federal Transmission Service, are adequate to meet
repayment criteria within the plus-or-minus two percent rate adjustment
threshold. However, certain aspects of the terms and conditions set
forth in the rate schedules need to be revised to expand the Real Power
Loss provisions and to more accurately reflect actual regional
operating conditions for Spinning and Supplemental Operating Reserves.
The names of the rate schedules have been changed from P-98B and NFTS-
98B to P-98C and NFTS-98C to reflect that revisions have been made.
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,'' in connection with the minor rate schedule revisions
being proposed. The public was advised by notice published in the
Federal Register (64 FR 49483), September 13, 1999, of proposed rate
schedule changes and of the opportunity to participate in a 30-day
public comment period. Written comments on the proposed rate schedule
changes were due on or before October 13, 1999. No written comments
were received. In addition, several informal meetings were held with
customers and interested parties to discuss the proposed changes.
Information regarding these rate schedule revisions, including
supporting material, is available for public review and comment in the
offices of Southwestern Power Administration, One West Third Street,
Suite 1400, Tulsa, Oklahoma 74103.
Following review of Southwestern's proposal within the Department
of Energy, I hereby approve Rate Order No. SWPA-42 on an interim basis,
through
September 30, 2001, or until confirmed and approved on a final
basis by the Federal Energy Regulatory Commission.
Dated: December 2, 1999.
T.J. Glauthier,
Deputy Secretary.
Order Confirming, Approving and Placing Revised Power Rate
Schedules in Effect on an Interim Basis (January 1, 2000)
[Rate Order, No. SWPA-42]
Pursuant to Sections 301(b) and 302(a) 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) were 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 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. This rate order is
issued by the Secretary of Energy pursuant to the Department of Energy
Organization Act, Public Law 95-91, as noted above.
Background
In September 1999, Southwestern completed its review of the
adequacy of the current rate schedules for the Integrated System and
finalized its FY 1999 Power Repayment The FY 1999 Power Repayment for
the Integrated System indicates that rates prescribed by Rate Schedules
P-98B, Wholesale Rates for Hydro Peaking Power, and NFTS-98B, Wholesale
Rates for Non-Federal Transmission Service, are sufficient to meet
repayment criteria within the plus-or-minus 2 percent rate adjustment
threshold. However, certain aspects of the terms and conditions set
forth in the rate schedules need to be revised to expand the Real Power
Loss provisions and to more accurately reflect actual regional
operating conditions for Spinning and Supplemental Operating Reserves.
Since the proposed changes to the rate schedules are associated with
the terms and conditions of service, the net results of the 1997
Integrated System Power Repayment Studies, which was the basis for the
existing rate schedules, will not be altered. The designations of the
aforementioned rate schedules have been changed from P-98B and NFTS-98B
to P-98C and NFTS-98C, respectively, to reflect the fact that revisions
have been made.
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) have been followed in
connection with the proposed revisions to the rate schedules. An
opportunity for customers and other interested members of the public to
review and comment on the proposed Rate Schedules P-98C and NFTS-98C
was announced by notice published in the Federal Register (64 FR
49483), September 13, 1999, with written comments due on or before
October 13, 1999. In addition, Southwestern held informal meetings with
customers to discuss proposed changes and to provide opportunity for
input in the development of these
[[Page 70011]]
changes. No written comments were received.
Discussion
Rate Schedule P-98C applies to wholesale customers purchasing hydro
peaking power and peaking energy from the Integrated System. This rate
schedule is designed for the sale of Federal power and energy.
Provisions in the rate schedule are being revised to reflect minor
corrections and modifications for the purpose of clarification. Also,
terms and conditions regarding specific provisions of this rate
schedule are being expanded to address customer or operational
concerns. Southwestern proposes to amend the terms and conditions for
Real Power Losses by adding a provision for the annual election to
self-provide Real Power Losses, and to broaden the application of rates
for the Spinning and Supplemental Operating Reserve ancillary services
to apply to deliveries of non-Federal power and energy generated by
resources located within Southwestern's Control Area and for all
deliveries of Hydro Peaking Power and associated energy. The rates for
the Spinning and Supplemental Operating Reserve ancillary services will
be reduced due to the increase in billing units that result from the
expanded application. However, the revenue requirements will remain
unchanged.
The existing rate schedule (P-98B) determined the rate for Real
Power Losses based upon the average actual costs incurred by
Southwestern for the purchase of energy to replace Real Power Losses
during the most recent twelve-month period. Southwestern has revised
this provision to use the average actual purchase costs during the
previous fiscal year (October through September) and to post the rate
for Real Power Losses on Southwestern's OASIS by November 1 of each
year, with an effective date of January 1 of each calendar year. The
timeframe for implementing the annual loss rate has been revised to
accommodate the annual election for self-provision of Real Power
Losses. Southwestern proposes to implement the revised rate for Real
Power Losses effective January 1, 2000. Customers who decide to
exercise their election for self-provision of Real Power Losses
initially must do so by January 1, 2000, with implementation beginning
February 1, 2000. Thereafter, the annual election for self-provision is
required to be exercised by December 1 of the prior calendar year, for
implementation beginning January 1 of each calendar year.
The provisions for the Spinning and Supplemental Operating Reserves
ancillary services have been broadened to include application to
deliveries of non-Federal power and energy generated by resources
located within Southwestern's Control Area. In addition, these two
ancillary services will also apply to all deliveries of Hydro Peaking
Power and associated energy, from and within Southwestern's Control
Area. This change in application is needed to accommodate
Southwestern's obligation, as a member of the regional reliability
council in which it operates, to supply Spinning and Supplemental
Operating Reserves for all power generated within Southwestern's
Control Area.
Rate Schedule NFTS-98C applies to wholesale customers purchasing
Non-Federal Point-to-Point and Network Integration Transmission
Service. Both the Real Power Losses and the Spinning and Supplemental
Reserve ancillary services have been revised in the same manner as in
Rate Schedule P-98C, noted above.
Comments and Responses
Southwestern has received no formal written comments regarding
these Rate Schedule changes.
Other Issues
There were no other issues raised during the informal meetings or
during the formal public participation period.
Administrator's Certification
The revised rate schedules will repay all costs of the Integrated
System including amortization of the power investment consistent with
the provisions of Department of Energy Order No. RA 6120.2. In
accordance with Section 1 of Delegation Order No. 0204-108, as amended
November 10, 1993, 58 FR 59717, and Section 5 of the Flood Control Act
of 1944, the Administrator has determined that the proposed System Rate
Schedules are consistent with applicable law and the lowest possible
rates consistent with sound business principles.
Environment
No additional evaluation of the environmental impact of the
proposed rate schedule changes was conducted since no change has been
made to the currently-approved System rates which were 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 by the Secretary of Energy, I hereby confirm, approve and place in
effect on an interim basis, effective January 1, 2000, the Southwestern
Integrated System Rate Schedules P-98C and NFTS-98C which shall remain
in effect on an interim basis through September 30, 2001, or until the
FERC confirms and approves the rates on a final basis.
Dated: December 2, 1999.
T.J. Glauthier,
Deputy Secretary.
[FR Doc. 99-32468 Filed 12-14-99; 8:45 am]
BILLING CODE 6450-01-P
