[Federal Register Volume 59, Number 23 (Thursday, February 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2318]
[[Page Unknown]]
[Federal Register: February 3, 1994]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 11 and 381
[Docket No. RM93-7-000]
Charges and Fees for Hydroelectric Projects
January 26, 1994.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
inviting comments on whether it should revise its regulations governing
the assessment of annual charges for the administration of Part I of
the Federal Power Act and if so, what changes might be appropriate. One
alternative that the Commission is considering is to allocate the
annual charges for administrative costs among a single class of
licensees and exemptees, based on the respective capacity of each
hydropower project as measured in kilowatts, with a minimum and maximum
charge, and with the assessments to commence at the same time as the
commencement of project construction. To ameliorate the potential
impact on licensees and exemptees, this alternative would include a
transition period of several years for phasing-in the changes. Other
alternatives would include, but would not be limited to, retention of
the current distinction between municipal and non-municipal licensees
including retention of the different formulae by which their respective
annual charges are allocated.
DATES: Comments are due on or before April 4, 1994.
ADDRESSES: An original and 14 copies of written comments must be filed.
All filings should refer to Docket No. RM93-7-000 and should be
addressed to: Office of the Secretary, Federal Energy Regulatory
Commission, 825 North Capitol Street, NE., Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT: Barry Smoler, Office of the General
Counsel, Federal Energy Regulatory Commission, 825 North Capitol
Street, NE., Washington, DC 20426, (202) 208-1269.
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission also provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours in room 3104, 941 North
Capitol Street, NE., Washington, DC 20426.
The Commission Issuance Posting System (CIPS), an electronic
bulletin board service, provides access to the texts of formal
documents issued by the Commission. CIPS is available at no charge to
the user and may be accessed using a personal computer with a modem by
dialing (202) 208-1379. To access CIPS, set your communications
software to use 300, 1200, or 2400 bps, full duplex, no parity, 8 data
bits, and 1 stop bit. CIPS can also be accessed at 9600 bps by dialing
(202) 208-1781. The full text of this rule will be available on CIPS
for 30 days from the date of issuance. The complete text on diskette in
Wordperfect format may also be purchased from the Commission's copy
contractor, La Dorn Systems Corporation, located in room 3104, 941
North Capitol Street NE., Washington, DC 20426.
I. Introduction
The Federal Energy Regulatory Commission (Commission) invites
comments on whether it should revise its regulations governing the
assessment of annual charges for the administration of Part I of the
Federal Power Act (FPA),\1\ and if so, what changes might be
appropriate. One alternative that the Commission is considering is to
allocate the annual charges for administrative costs among a single
class of licensees and exemptees, based on the respective capacity of
each hydropower project as measured in kilowatts, with a minimum and
maximum charge, and with the assessments to commence at the same time
as the commencement of project construction. To ameliorate the
potential impact on licensees and exemptees, this alternative would
include a transition period of several years for phasing-in the
changes. Other alternatives would include, but would not be limited to,
retention of the current distinction between municipal and non-
municipal licensees including retention of the different formulae by
which their respective annual charges are allocated.
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\1\16 U.S.C. 792-823b.
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II. Public Reporting Burden
Under the current regulations, major non-municipal licensees file
annual reports containing data on their electric generation during the
prior fiscal year. If adopted, one alternative of the regulations
discussed herein would eliminate that reporting burden.
III. Background
The Commission is required by section 10(e)(1) of the FPA2 to
collect annual charges from licensees for the cost of administering
Part I of the FPA. Part 11 of the Commission's regulations3
provides the manner in which licensees are charged for such costs.
Prior to the adoption of the current regulations in 1958 and 1963,
administrative charges were not based on the actual costs of the
government, but were in the nature of set fees that were billed for a
calendar year.\4\ Under the current regulations, the reimbursable costs
are determined on a fiscal year basis.
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\2\16 U.S.C. 803(e)(1).
\3\18 CFR part 11.
\4\The present system of basing the annual charges on actual
costs was adopted in Order No. 205, 19 F.P.C. 907 (1958) (with
respect to municipal licensees only), and in Order No. 272, 30
F.P.C. 1333 (1963) (all other licensees); see also Order No. 272A,
31 F.P.C. 1555 (1964).
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Section 3401 of the Omnibus Budget Reconciliation Act of 1986
(OBRA)\5\ requires the Commission to recover all of its costs for the
fiscal year through annual charges and fees.\6\ The annual charges
assessed pursuant to OBRA are based on an estimate of the Commission's
current-fiscal-year costs, with subsequent adjustments based on actual
costs.\7\ Pursuant to OBRA, the Commission collects annual charges to
recover the costs of administering parts II and III of the FPA, as well
as the costs the Commission incurs in administering the Natural Gas
Act, the Natural Gas Policy Act, and the Interstate Commerce Act. In
this regard, we note that section 3401(a)(2) of OBRA provides that
``[t]he provisions of this subtitle shall not affect the authority,
requirements, exceptions, or limitations in sections 10(e) and 30(e) of
the Federal Power Act.''
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\5\Pub. L. No. 99-509, Title III, Subtitle E, sec. 3401 (1986)
(codified at 42 U.S.C. 7178). OBRA is implemented in Part 382 of the
Commission's Regulations, 18 CFR Part 382.
\6\See Joint Explanatory Statement of the Committee of
Conference to Accompany H.R. 5300 (Conference Report), H.R. Rep. No.
1012, 99th Cong., 2d Sess. 238, reprinted in 1986 U.S.C.C.A.N. 3607,
3883.
\7\The procedures for estimating the costs and later adjusting
the assessments are described in Order No. 472, 52 FR 18201 (May 14,
1987), FERC Stats. & Regs. (Regulations Preambles 1986-1990) 30,746
at pp. 30,612 and 30,616-17.
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IV. Discussion
A. Allocation Among Different Classes of Licensees
The existing Sec. 11.1 provides three different allocation formulae
for three different classes of licensees. For non-municipal licensees
of projects of more than 2,000 horsepower of installed capacity,
Sec. 11.1(a) sets forth an allocation formula that is based on a
combination of the project's authorized installed capacity and the
energy actually generated.8 For municipal licensees of projects of
more than 2,000 horsepower, Sec. 11.1(b) sets forth an allocation
formula based solely on capacity.9 For all licensees (both
municipal and non-municipal) of projects of 2,000 horsepower or less of
installed capacity, Sec. 11.1(c) specifies an annual charge of five
cents per horsepower, with a minimum charge of $5 per year.10
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\8\The capacity is currently measured in horsepower, while the
generation is measured in kilowatt-hours. The allocation for pumped
storage projects is based solely on capacity.
\9\The capacity is currently measured in horsepower.
\1\0As noted above, the present allocation formulae were adopted
in Order No. 205, 19 F.P.C. 907 (1958) and Order No. 272, 30 F.P.C.
1333 (1963).
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The Commission believes that the process of collecting data and
assessing charges could be conducted more efficiently if the allocation
were based on a single formula, and questions whether any presently-
valid purpose is served by perpetuating the divergent formulae.
Therefore, one alternative the Commission is considering is to use the
same formula to allocate the annual charges among a single pool of
licensees that includes both municipal licensees (i.e., those who are
not fully exempt from annual charges) and non-municipal licensees, as
well as minor licensees and (as discussed below) exemptees. One
variation of that alternative is to base that formula entirely on
authorized installed capacity. Another variation would be to base the
formula entirely on generation. A third alternative would be to base it
on a combination of capacity and generation.
We recognize that using the same formula to allocate the annual
charges among a single pool of licensees (and exemptees) would cause a
large increase, both in total dollars and percentage, that major
municipal licensees as a group experience. We solicit comment on this
impact. One approach the Commission could consider (discussed below)
would be the adoption of a three-year transition period for phasing in
the resulting cost changes.
Changing the allocation formula from a mix of capacity and
generation to capacity alone would reduce the Commission's
administrative burden as well as the reporting requirements of major
non-municipal licensees. Under the current system, the Commission
obtains annual generation data from non-municipal project operators;
delays in providing this information to the Commission complicate the
billing process. By using authorized installed capacity exclusively,
the Commission would always have the apportionment data on hand and the
calculation of the bills would be simplified.
The Commission is also considering alternative formulae, such as an
allocation based in whole or in part on generation measured in kilowatt
hours. In this regard, the Commission notes that the annual charges it
assesses pursuant to OBRA are all allocated among the regulated
entities pursuant to a formula based on an appropriate measure of
volume rather than on a measure of capacity. OBRA requires the
Commission to compute those annual charges based on methods which the
Commission determines to be ``fair and equitable.''11 Annual
charges under Parts II and III of the FPA and related statutes are
apportioned to public utilities based on the data they submit with
respect to megawatt-hours of adjusted sales for resale and adjusted
coordination sales.12 Annual charges under the Natural Gas Act and
the Natural Gas Policy Act of 1978 and related statutes are allocated
among natural gas pipeline companies based on the volumes of gas sold
or transported by each company.13 Annual charges under the
Interstate Commerce Act are allocated among oil pipelines based on
their operating revenues.14
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\1\1See Annual Charges Under the Omnibus Budget Reconciliation
Act of 1986, Order No. 472, FERC Stats. & Regs. (Regulations
Preambles) 30,746 at p. 30,610 (1987).
\1\2See 18 CFR 380.201. It also contains a comparable provision
for allocating annual charges among power marketing agencies.
\1\3See 18 CFR 380.202.
\1\4See 18 CFR 380.203. As noted below, there is a maximum
charge.
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With respect to the annual charges for the administration of part I
of the FPA pursuant to section 10(e)(1) of the FPA, the analog to
allocation of the annual charges pursuant to OBRA would be an
allocation scheme based on the electric energy actually generated by
the various licensed and exempted hydropower projects rather than on
their respective capacity to so generate. We are concerned, however,
that the generation data reporting requirements necessary to implement
such a scheme may impose an undue burden on smaller licensees and
exemptees. Accordingly, the Commission invites comment on the propriety
of using generation data rather than authorized capacity as the basis
for allocating the charges, and on whether such a scheme would be
unduly burdensome on some or all licensees or exemptees. We
specifically invite comment from municipal and minor licensees as to
whether they have equipment for measuring generation and whether it
would be burdensome to report such data to us.
Another alternative that the Commission is considering to simplify
the allocation process is to eliminate only the third prong of the
formula, and to include minor licensees in the respective allocation
formulae for major licensees. In other words, the minor municipal
licensees would be included in the same allocation formula with the
major municipal licensees, and the minor non-municipal licensees would
be included in the same allocation formula with the major non-municipal
licensees. The Commission could include exemptees in the same manner.
This alternative would preserve the existing use of a formula based on
a combination of capacity and generation to determine the annual
charges for non-municipal licensees, and of a formula based solely on
capacity to determine the annual charges for municipal licensees. This
alternative would avoid the large increase, both in total dollars and
percentage, that major municipal licensees as a group would experience
under a single, unified formula.
The Commission could provide a transition period for phasing in the
assessments for minor licensees and exemptees. The Commission
specifically invites comment from minor licensees and exemptees on
whether such a transition period would be helpful or appropriate.
In this regard, the Commission notes that the current system of
categorizing municipal and non-municipal projects separately for
purposes of annual charges produces a sizeable disparity in the annual
charges assessed for projects of comparable size depending on their
class of ownership. The disparity is illustrated by the data in the
table in Appendix A.
Under the present regulations, and under the currently prevailing
facts (which, as discussed below, can be expected to change), the non-
municipal licensees are assessed a substantially larger annual charge
per kilowatt of capacity than the municipal licensees. This is
occurring primarily because the bulk of the Commission's current
licensing activities is focused on processing applications for new
licenses for projects whose original licensees expired in 1993. Since a
disproportionate number of these projects are owned by non-municipal
licensees, the effect of segregating out the hours spent on those
applications is to allocate more of the annual charges burden to the
non-municipal licensees. In other words, non-municipal licensees as a
group are paying comparatively higher annual charges today than
municipal licensees because at this time the non-municipal licensees,
as a group, are imposing comparatively greater regulatory costs.
This is not to suggest, however, that the disproportionate charges
are being assessed only to the non-municipal licensees who have filed
pending applications for a new license or who are presently involved in
compliance proceedings. To the contrary, the annual charge assessments
for this work are allocated among all of the non-municipal licensees as
a class, and most of those licensees are neither seeking a new license
nor involved in a compliance proceeding.
Furthermore, it is reasonable to assume that in some future year
the shoe may shift to the other foot. On average, over time, the
licenses for municipal projects expire at the same frequency as the
licenses for non-municipal projects, and the frequency of compliance
proceedings also tends to even out. Thus, given the current
concentration of resources on processing cases involving non-municipal
projects, it is reasonable to assume that eventually some years will
occur in which there will be an equally disproportionate burden of
annual charge assessments on municipal projects vis-a-vis non-municipal
projects. The net effect of the present categorization of costs
according to the municipal/non-municipal status of the project,
therefore, is not to permanently favor either one class or the other,
but to create swings--both up and down--in the annual charges assessed
to the two classes, depending on the particular mix of the Commission's
workload in any given year. The Commission welcomes comment on all of
these matters.
The Commission recognizes the possibility that the elimination of
generation as a factor might have a significant impact on some
licensees, and welcomes comment on it. The Commission also recognizes
that the charges for minor licensees may increase substantially, but
believes that the current charge of five cents per horsepower has been
so heavily eroded by inflation since it was adopted in 1963 as to have
been rendered comparatively meaningless.
For instance, the table in Appendix A at the end of this NOPR shows
the following illustrative examples of increases in annual charges for
minor licensees from the 1993 charge to the charge that would result
from the amendments described in the Alternative A regulatory text:
------------------------------------------------------------------------
Proposed
Current method
Minor licensee method charge,
charge fourth year
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Town of Rollingsford.......................... $100 $1,697
City of Marshall.............................. 22 367
City of Lewiston.............................. 67 1,134
STS Hydropower Ltd............................ 75 1,279
John A. Dodson................................ 5 100
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In particular, the Commission welcomes comment on whether there are
distinctions between municipal and non-municipal projects that would
justify the current difference in their allocation formulae or whether
the substantial increases in some licensees' annual charges that would
result from eliminating this distinction are reason enough to retain
the distinction.
The Commission recognizes that, in the case of major construction
projects, the license may be in effect for several years before project
construction is commenced and before the project commences operation
and goes into service. With respect to non-municipal licensees, annual
charges are payable each year from the date of issuance of the license
but there is no incoming stream of revenue during those years because
no power is being generated. Municipal licensees, on the other hand, do
obtain an exemption from annual charges prior to and during the
construction period because, since they are not generating power during
that period, they are not selling power for profit. This is because
Sec. 11.6(g) of the regulations provides a complete exemption from
certain annual charges when a municipal project is under construction
and not generating power, on the theory that the project is operating
without profit within the meaning of the municipal exemption in FPA
section 10(e).
Under the various regulatory regimes discussed herein, the
Commission would maintain the above-described exemption from annual
charges with respect to municipal projects that have not yet commenced
commercial operation. In addition, the Commission proposes to include
in the assessment formula (whatever it may be) only licensed and
exempted projects that have already been constructed or whose
construction has commenced. Although framed in terms of all projects,
as a practical matter, because of the exemption for municipal projects,
the change would primarily affect non-municipal projects.
We believe that commencement of construction is a more appropriate
determinant than completion of construction, for two reasons. First of
all, the date on which construction commenced is a legally precise,
documented date15-16 whereas the date on which construction is
completed is not defined with the same precision. Secondly, it is our
understanding that licensees of projects under construction can draw on
construction loan funds to pay the annual charges whereas such funds
may not be available prior to the commencement of construction.
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\1\5-16Section 13 of the FPA requires that the licensee commence
construction of the project within fixed time periods after issuance
of the license, as specified in section 13 and the license. Thus,
the Commission has evolved standards for determining the precise
date of commencement of construction, and the hydropower industry is
familiar with those standards.
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The Commission also proposes to establish a minimum and maximum
annual charge. The minimum annual charge would be $100.17 We
believe that $100 is a reasonable charge for a regulated project to
pay, to participate in defraying the cost of administration of the
hydropower regulatory program, regardless of how small the project's
capacity may be.18
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\1\7Under certain circumstances (e.g., commencement of
construction, or transfer or termination of a license during a
fiscal year) the minimum charge would be prorated.
\1\8In the event that a municipal licensee was entitled to a
partial exemption from annual charges, the exemption could reduce
its charge below the $100 minimum.
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The Commission also proposes to set a limit on annual charges so
that, with respect to costs incurred by the Commission, no licensee's
project would be required to pay more than 2.0 percent of the total
costs. We believe that a maximum charge is appropriate to avoid having
a small number of projects bearing most of the Commission's costs of
administration. The proposed limit is modelled after the formula in
Sec. 382.203(b) with respect to annual charges for oil pipelines. The
maximum annual charge stated therein is 6.339 percent of the total
charges, but that figure is based on a much smaller number of
significant entities (interstate oil pipelines) sharing a much smaller
total cost.
With respect to a minimum charge, other alternatives would be to
waive charges below a fixed dollar amount or below a fixed capacity.
With respect to a maximum charge, different percentages could be used
for the ceiling. If the formula were to be based solely on capacity,
another alternative would be to have a 50 percent discount for all
authorized capacity above a prescribed ceiling (e.g., 500 megawatts).
In this example, if a project had an authorized capacity of 1000
megawatts, it would be counted in the apportionment formula as 750
megawatts (all of the first 500 megawatts plus half of the second 500
megawatts). The Commission invites comments on these and other
potential alternatives.
The Commission notes that adoption of some of the alternatives
discussed herein might increase the annual charges for certain pumped
storage projects. Nevertheless there are other features (such as the
start-of-construction date and the maximum charge) that would benefit
some pumped storage projects, to the extent that large pumped storage
projects have extended design and construction periods and
comparatively massive capacity.
We have included in this notice of proposed rulemaking two
alternative examples of the regulatory text that might be used to
implement the various alternative proposals discussed herein. The
``Alternative A'' regulatory text is based on the allocation of all of
the annual charges among a single class of licensees and exemptees,
including all major and minor municipal and non-municipal licensees and
all exemptees. The allocation is based solely on the respective
capacity of each hydropower project as measured in kilowatts.
The ``Alternative B'' regulatory text retains the current separate
categories and formulae for major municipal and non-municipal
licensees. Minor licensees and exemptees would be classified with the
comparable groups of major licensees and their charges would be
assessed pursuant to the formulae currently used for those groups.
Both the ``Alternative A'' and ``Alternative B'' regulatory texts
implement a minimum charge of $100 and a maximum charge of two percent
of the total of all charges. Under both alternatives, assessments would
not commence prior to the commencement of project construction.19
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\1\9Attached to this NOPR as Appendices A, B and C are three
tables prepared by the Commission's staff which shows the impact
that some of the ideas discussed herein might have on the annual
charges of representative licensees and exemptees.
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B. Transition Arrangements
While the Commission believes that many of the regulatory
amendments discussed above would in the long run render the regulations
more rational and more fair and equitable, the Commission also
recognizes that if these amendments were to be adopted en masse at a
single stroke they might impose significant unanticipated burdens on
some licensees and exemptees. Therefore, the Commission proposes a
three-year transition period for phasing-in some of the changes it
might adopt, particularly with respect to the changes described in the
``Alternative A'' regulatory text.
Charges during the transition described therein would be calculated
by the following steps. First, the difference between a project's
charge using the current method and the proposed method would be
divided into fourths. The charge for the first transition year would be
the current method charge plus the one-fourth increment. (If the charge
is reduced in going from the current method to the proposed method, the
one-fourth increment would be subtracted.)20 The charge for the
second transition year would be the current method charge plus (or
minus) the two-fourths increment. The charge for the third transition
year would be the current method charge plus (or minus) the three-
fourths increment. The charge for the fourth year would be calculated
solely by the proposed method.
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\20\In order to avoid any net increase or decrease in the total
of all charges assessed in any single year, the total amount of the
reductions in the charges must be matched by an equal amount of
``increases'' in charges. The ``increases,'' however, would in fact
simply be a partial elimination of a reduction that would otherwise
occur--to balance the elimination of part of an actual increase
elsewhere that would otherwise occur.
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The charges in all of these transition years, however, would be
subject to the proposed minimum and maximum charges.\21\ In addition,
in all of these transition years, charges would be assessed only with
respect to hydropower projects that have been constructed or whose
construction has commenced.\22\
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\21\Thus, even during the transition period the minimum charge
would be $100 and the maximum charge would not exceed two percent of
the total of all charges assessed. See Appendices A and B for
illustrative examples.
\22\The regulatory amendments proposed herein are intended to be
purely prospective in nature. Thus, to the extent that any licensee
has obtained approval for an installment or deferred payment plan,
the amendments, if adopted, would not extinguish that licensee's
responsibility to pay whatever amounts were assessed under the
existing regulations even if such amounts have been deferred for
later payment.
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Finally, as discussed above, if the major changes have their most
significant impact only on minor licensees and exemptees, a transition
period could be established solely for those entities.
C. From Horsepower to Kilowatts
As discussed above, the existing regulations at Sec. 11.1 provide
different allocation formulae for municipal and non-municipal projects
of more than 2,000 horsepower of installed capacity. Both formulae,
however, take into account a project's authorized installed capacity
defined in terms of horsepower.
The computation of a project's capacity in terms of horsepower
likely arose in the earlier years of the Commission's regulatory
oversight, when the then-existing projects included a greater
percentage of hydromechanical equipment.\23\ Today, however, the
determination of a hydroelectric project's authorized capacity is
generally stated in terms of kilowatts; that is the manner in which
authorized capacity is stated in the licenses.\24\ In fact, the
Commission's staff determines a project's horsepower capacity by
converting kilowatts into horsepower. Therefore, the Commission
proposes to revise Sec. 11.1 to substitute kilowatts for horsepower in
stating a project's authorized installed capacity.
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\23\In other words, horsepower was a convenient measure for
comparing the capacity of hydropower projects, some of which
generated electricity and some which did not. In rough terms,
horsepower measures the weight that an average draft horse can pull
in a circular path around a rotary grinder. The common definition in
the United States is that one horsepower is equal to 550 foot-pounds
per second or approximately 746 watts.
\24\The exception is that the license article on annual charges
states the capacity in horsepower.
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For the few licensed hydromechanical projects, all of which are
quite small, the Commission would impute a kilowatt figure by
multiplying these projects' existing horsepower capacity by three-
fourths. We believe that using kilowatts as the standard and converting
the few hydromechanical project capacities into an imputed kilowatt
capacity is far easier than converting all of the hydroelectric project
capacities from kilowatts to horsepower.
D. The Determination of Authorized Installed Capacity
Questions have occasionally arisen as to how to define ``authorized
installed capacity.'' What if the capacity of the generator exceeds the
capacity of the turbine? What if the available stream flow is
insufficient to fully utilize the capacity of the turbine and generator
installed in the project?\25\
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\25\Such situations might arise, for instance, if it were
cheaper for a project operator to purchase an ``off-the-shelf'' or a
used generator whose capacity exceeded the capacity of the turbine
or the stream flow available at the project site.
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The Commission proposes to take this occasion to clarify the
concept of ``authorized installed capacity'' by defining it. The
authorized installed capacity would be expressed in kilowatts, and
would be the lesser of the capacity of the generator or the turbine.
Thus, if the capacity of the generator exceeded the capacity of the
turbine, then the capacity of the turbine would apply, and vice-versa.
The availability of stream flow, however, would not be considered.\26\
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\26\The proposed rule would codify the policy articulated in
Public Utility District No. 2 of Grant County, Washington, 62 FERC
61,229 (1993).
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The capacity would be based on the actual power of the equipment in
question without regard to whatever ``nameplate'' rating might be
physically affixed to the unit (although, with respect to a new or
unmodified unit, the ``nameplate rating'' may well coincide with the
definition proposed herein). If the generator or turbine are
subsequently modified, such as by rewinding the generator, the capacity
would be recalculated accordingly.
We believe that the proposed definition provides a means of
determining capacity that is both workable and fair. The capacity of
the generator and the turbine are reasonably ascertainable, and do not
involve the potential complexities and controversies inherent in
determining the availability of usable stream flow. If a project
operator, for whatever reason, chose to purchase, install or operate
equipment whose capacity exceeded the available stream flow needed to
operate it, the operator would have to accept the consequence of having
that equipment's capacity used as the basis for determining the
project's annual charges.
E. The Five Megawatt and Conduit Exemption Costs
Section 30 of the FPA\27\ provides that the Commission may exempt
from the FPA's licensing provisions any facility (other than a dam, and
within certain megawatt limits) which is constructed or operated to
generate electric power, if the facility is located on non-federal land
and ``utilizes for such generation only the hydroelectric potential of
a manmade conduit, which is operated for the distribution of water for
agricultural, municipal, or industrial consumption and not primarily
for the generation of electricity.''
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\27\18 U.S.C. 823a.
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Sections 405 and 408 of the Public Utility Regulatory Policies Act
of 1978 (PURPA), as amended by section 408 of the Energy Security Act
of 1980,\28\ provide that the Commission may exempt from the FPA's
licensing requirements small hydroelectric power projects that are
located at the site of an existing dam (or utilize natural water
features without the need for a dam) and that have a proposed installed
capacity of five megawatts (MW) or less.
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\28\16 U.S.C. 2708.
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The Commission's staff, however, performs similar safety and
environmental compliance functions with respect to hydroelectric
projects that are operated pursuant to a 5 MW or conduit exemption as
it does for projects that are operated pursuant to a license. The
Commission also incurs costs in processing exemption applications.
Therefore, as a matter of policy, the Commission believes that it would
be appropriate for projects that are operated pursuant to the 5 MW
exemption to share the cost of the Commission's application and
compliance programs, and that the same principle applies as well with
respect to conduit exemptions.
Section 10(e) of the FPA provides that ``the licensee shall pay * *
* annual charges * * * for the costs of the administration of this Part
* * *'' (emphasis added). We believe that this statutory language may
preclude imposition of annual charges on 5 MW and conduit exemptees
under section 10(e) of the FPA. It is arguable that such exemptees
could not be construed as ``licensees'' within the meaning of section
10(e). The Commission believes, however, that it has the legal
authority under OBRA to assess annual charges to exemptees,29 and
proposes to do so with respect to both the 5 MW and the conduit
exemptions.30
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\2\9Section 3401(a) of OBRA provides as follows:
(a) In General.--(1) Except as provided in paragraph (2) and
beginning in fiscal year 1987 and in each fiscal year thereafter,
the Federal Energy Regulatory Commission shall, using the provisions
of this subtitle and authority provided by other laws, assess and
collect fees and annual charges in any fiscal year in amounts equal
to all of the costs incurred by the Commission in that fiscal year.
(2) the provisions of this subtitle shall not affect the
authority, requirements, exceptions, or limitations in sections
10(e) and 30(e) of the Federal Power Act.
Whereas this provision makes clear that OBRA does not authorize
the collection of annual charges from, e.g., municipal licensees who
qualify for an exemption under the terms of section 10(e) of the
Federal Power Act, projects under exemptions from licensing are not
subject to section 10(e), and therefore charging them under OBRA
does not affect any provision of section 10(e).
Section 30(e) of the Federal Power Act requires the Commission
to collect from exemption applicants and certain license applicants,
on behalf of the U.S. Fish and Wildlife Service, the National Marine
Fisheries Service, and state fish and wildlife agencies, these
agencies' project-specific costs under section 30(c) (establishment
of mandatory conditions with respect to fish and wildlife
resources). These agencies are required to subtract from their
section 10(e) claims the money they recover under section 30(e).
\3\0Holders of 5 MW and conduit exemptions would, however, be
able to apply for exemption from annual charges based on their
municipal status.
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Finally, pursuant to Sec. 381.601, the Commission currently imposes
a filing fee for applications for a 5 MW exemption. The fee is based on
the cost of processing all 5 MW exemption applications received each
year divided by the number of applications that the Commission has
completed processing in that year. At present, the fee established by
Sec. 381.601 is $21,620. Because the Commission is proposing to assess
annual charges on 5 MW exemptees, the Commission proposes to delete
Sec. 381.601 from the regulations.31
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\3\1The Commission does not impose a filing fee for conduit
exemptions.
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F. Other Revisions to Annual Charges
Section 11.1(d) currently states that the minimum annual charge for
projects involving transmission lines will be $5. The Commission's
current practice, however, is to state that charge in the articles of
the individual licenses, as appropriate. Therefore, we propose to
conform the text of Sec. 11.1(d) to that practice.
In its current form, Sec. 11.20 provides two separate deadlines for
payment of bills for annual charges: 30 days for headwater benefits
bills and 45 days for other annual charges bills. The purpose of this
distinction is not readily apparent. Therefore, the Commission proposes
to make all such bills payable upon 30 days of their rendition.
There has also been some confusion over the procedures that a
licensee should follow if it believes that the bill is incorrect. The
proposed new Sec. 11.20 provides for licensees to file an appeal of the
bill to the Commission's Chief Financial Officer. All decisions of the
Chief Financial Officer on appeals would be subject to rehearing by the
Commission pursuant to Sec. 385.713. This would essentially codify the
current informal practice. Most billing disputes involve mathematical
calculations that can be readily resolved by discussion with the
Commission's staff without the need for a formal request to the
Commission for rehearing.
The bill would still have to be paid within 30 days of its
rendition in order to avoid the assessment of penalty payments under
Sec. 11.21, but if a timely appeal or request for rehearing is filed
the bill could be paid under protest and subject to refund. This
provision would codify the Commission's current practice.
As currently in effect, Sec. 11.6(i) requires that applications for
exemptions from payment of annual charges ``shall be prepared on forms
prescribed by the Commission * * *.'' Inasmuch as the Commission does
not currently prescribe such forms, the reference to such forms will be
deleted.
We also propose to add a sentence at the end of Sec. 11.6(i) to
clarify that bills for annual charges can be paid under protest and
subject to refund in the event that an application for an exemption
from payment is pending when the bill becomes payable. This provision
would codify the Commission's current practice.
V. Regulatory Flexibility Certification
The Regulatory Flexibility Act of 1980 (RFA)32 generally
requires a description and analysis of proposed regulations that will
have a significant economic impact on a substantial number of small
entities.\33\ Pursuant to section 605(b) of the RFA, the Commission
hereby certifies that the regulations proposed herein will not have a
significant economic impact on a substantial number of small entities.
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\32\5 U.S.C. 601-612.
\33\Section 601(c) of the RFA defines a ``small entity'' as a
small business, a small not-for-profit enterprise, or a small
governmental jurisdiction. A ``small business'' is defined by
reference to section 3 of the Small Business Act as an enterprise
which is ``independently owned and operated and which is not
dominant in its field of operation.'' 15 U.S.C. 632(a).
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VI. Environmental Statement
Issuance of this notice of proposed rulemaking does not constitute
a major federal action having a significant adverse impact on the
quality of the human environment under the Commission's regulations
implementing the National Environmental Policy Act.34 The
regulations proposed herein are procedural in nature and therefore fall
within the categorical exemptions provided in the Commission's
regulations. Consequently, neither an environmental impact statement
nor an environmental assessment is required.35
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\34\See Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats.
& Regs. (Regulations Preambles 1986-1990) 30,783 (Dec. 10, 1987)
(codified at 18 CFR Part 380).
\35\See 18 CFR 380.4(a)(1).
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VII. Information Collection Statement
The Office of Management and Budget's (OMB) regulations at 5 CFR
1320.13 require that OMB approve certain information and recordkeeping
requirements imposed by an agency. The information collection
requirements that would be deleted by this proposed rule are contained
in FERC-583 ``Annual Kilowatt Generating Report (Annual Charges)''
(1902-0136). The Commission's Financial Services Division uses the data
for determination of the amount of annual charges to be assessed
licensees for reimbursable government administrative costs. If the
amendments proposed herein are adopted, the Commission would submit to
the OMB a notification that these collections of information have been
modified.
Interested persons may obtain information on these reporting
requirements by contacting the Federal Energy Regulatory Commission,
941 North Capitol Street NE., Washington, DC 20426 [Attention: Michael
Miller, Information Services Division, (202) 208-1415]. Comments on the
requirements of this rule can be sent to the Office of Information and
Regulatory Affairs of OMB [Attention: Desk Officer for Federal Energy
Regulatory Commission].
VIII. Public Comment Procedures
The Commission invites all interested persons to submit written
comments on the matters discussed in this notice of proposed
rulemaking. An original and 14 copies of the written comments must be
filed with the Commission April 4, 1994. Comments should be submitted
to the Office of the Secretary, Federal Energy Regulatory Commission,
825 North Capitol Street NE., Washington, DC 20426, during regular
business hours, and should refer to Docket No. RM93-7-000.
All written comments will be placed in the Commission's public
files and will be available for inspection in the Commission's Public
Reference Room, room 3104, 941 North Capitol Street North East,
Washington, DC 20426 during regular business hours.
List of Subjects
18 CFR Part 11
Electric power, Reporting and recordkeeping requirements.
18 CFR Part 381
Electric power plants, Electric utilities, Natural gas, Reporting
and recordkeeping requirements.
In consideration of the foregoing, the Commission invites comment
on the potential amendments to 18 CFR parts 11 and 381 that are set
forth below in two alternative versions (styled as ``Alternative A''
and ``Alternative B''), and also invites comments on any other
potential alternatives.
Lois D. Cashell,
Secretary.
For the reasons set out in the preamble, 18 CFR parts 11 and 381
are proposed to be amended in the alternative as follows:
Alternative A
PART 11--ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT
1. The authority citation for Part ll continues to read as follows:
Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352.
2. Section 11.1 is revised to read as follows:
Sec. 11.1 Costs of administration.
(a) Authority. Pursuant to section 10(e) of the Federal Power Act
and section 3401 of the Omnibus Budget Reconciliation Act of 1986, the
Commission will assess reasonable annual charges against licensees and
exemptees to reimburse the United States for the costs of
administration of the Commission's hydropower regulatory program.
(b) Scope. The annual charges under this section will be charged to
and allocated among:
(1) all licensees;
(2) all holders of exemptions under section 30 of the Federal Power
Act; and
(3) all holders of exemptions under sections 405 and 408 of the
Public Utility Regulatory Policies Act of 1978, as amended by section
408 of the Energy Security Act of 1980.
(c) Formula. A determination shall be made for each fiscal year of
the costs of administration of Part I of the Federal Power Act, from
which shall be deducted administrative costs fixed in the licenses and
exemptions and those fixed by the Commission in determining headwater
benefit payments. For each fiscal year, the costs of administration
will be assessed against each licensee and exemptee in the proportion
that the annual charge factor for each such project bears to the total
of the annual charge factors under all such outstanding licenses and
exemptions. The annual charge factor for each such project shall be its
authorized installed capacity as measured in kilowatts. The assessments
will include all such licensed and exempted projects that have been
constructed, and all such licensed and exempted projects whose
construction has been commenced. In the event that construction
commences during a fiscal year, the charges will be prorated based on
the day on which construction commenced.
(d) Municipal exemptions. (1) To enable the Commission to compute
on the bill for annual charges the exemption to which State and
municipal licensees and exemptees are entitled because of the use of
power by the licensee or exemptees for State or municipal purposes,
each such licensee or exemptee must file with the Commission, on or
before November 1 of each year, a statement under oath showing the
following information with respect to the power generated by the
project and the disposition thereof during the preceding fiscal year,
expressed in kilowatt-hours:
(i) Gross amount of power generated by the project.
(ii) Amount of power used for station purposes and lost in
transmission, etc.
(iii) Net amount of power available for sale or use by licensee or
exemptee, classified as follows:
(A) Used by licensee or exemptee.
(B) Sold by licensee or exemptee.
(2) When the power from a licensed or exempted project owned by a
State or municipality enters into its electric system, making it
impracticable to meet the requirements of this section with respect to
the disposition of project power, such licensee or exemptee may, in
lieu thereof, furnish similar information with respect to the
disposition of the available power of the entire electric system of the
licensee or exemptee.
(e) Transmission lines. For projects involving transmission lines
only, the administrative charge will be stated in the license.
(f) Minimum and maximum charges. (1) The minimum annual charge
under this section will be $100 per year for each licensed or exempted
project, subject to reduction based on partial or total exemption
pursuant to paragraph (d) of this section.
(2) No licensed or exempted project's annual charge may exceed a
maximum charge established each year by the Commission to equal 2.0
percent of the adjusted costs of administration of the hydropower
regulatory program. For every project with an annual charge determined
to be above the maximum charge, that project's annual charge will be
set at the maximum charge, and any amount above the maximum charge will
be reapportioned to the remaining projects. The reapportionment will be
computed using the method outlined in paragraph (c) of this section
(but excluding any project whose annual charge is already set at the
maximum amount). This procedure will be repeated until no project's
annual charge exceeds the maximum charge.
(g) Commission's costs. (1) With respect to costs incurred by the
Commission, the assessment of annual charges will be based on an
estimate of the costs of administration of Part I of the Federal Power
Act that will be incurred during the fiscal year in which the annual
charges are assessed. After the end of the fiscal year, the assessment
will be recalculated based on the costs of administration that were
actually incurred during that fiscal year; the actual costs will be
compared to the estimated costs; and the difference between the actual
and estimated costs will be carried over as an adjustment to the
assessment for the subsequent fiscal year.
(2) The issuance of bills based on the administrative costs
incurred by the Commission during the year in which the bill is issued
will commence in 1993. The annual charge for the administrative costs
that were incurred in fiscal year 1992 will be billed in 1994. At the
licensee's option, the charge may be paid in three equal annual
installments in fiscal years 1994, 1995, and 1996, plus any accrued
interest. If the licensee elects the three-year installment plan, the
Commission will accrue interest (at the most recent yield of two-year
Treasury securities) on the unpaid charges and add the accrued interest
to the installments billed in fiscal years 1995 and 1996.
(h) In making their annual reports to the Commission on their costs
in administering Part I of the Federal Power Act, the United States
Fish and Wildlife Service and the National Marine Fisheries Service are
to deduct any amounts that were deposited into their Treasury accounts
during that year as reimbursements for conducting studies and reviews
pursuant to section 30(e) of the Federal Power Act.
(i) Definition. As used in paragraph (c) of this section,
authorized installed capacity means the lesser of the ratings of the
generator or turbine units. The rating of a generator is the product of
the continuous-load capacity rating of the generator in kilovolt-
amperes (kVA) and the system power factor in kW/kVA. If the licensee or
exemptee does not know its power factor, a factor of 1.0 kW/kVA will be
used. The rating of a turbine is the product of the turbine's capacity
in horsepower (hp) at maximum head gate opening under the
manufacturer's rating head times a conversion factor of 0.75 kW/hp. If
the generator or turbine installed has a rating different from that
authorized in the license or exemption, or the installed generator is
rewound or otherwise modified to change its rating, or the turbine is
modified to change its rating, the licensee or exemptee must apply to
the Commission to amend its authorized installed capacity to reflect
the change.
(j) Transition rules. (1) For a license having the capacity of the
project for annual charge purposes stated in horsepower, that capacity
shall be deemed to be the capacity stated in kilowatts elsewhere in the
license, including any amendments thereto.
(2) During the first three fiscal years in which annual charges are
assessed after [INSERT DATE ON WHICH THE FINAL RULE BECOMES EFFECTIVE],
the annual charges will be determined as follows. The assessments will
include (and be limited to) all licenses and exempted projects that
have been constructed or whose construction has been commenced, and
will be subject to the minimum and maximum charges specified in
paragraph (f) of this section. Subject to those parameters, the
Commission will determine the charge that would have been assessed
pursuant to the regulations in effect prior to [INSERT DATE ON WHICH
THE FINAL RULE BECOMES EFFECTIVE], the charge that would have been
assessed pursuant to the regulations in effect subsequent to that date,
and the difference between those two assessments. In the first fiscal
year after [INSERT DATE ON WHICH THE FINAL RULE BECOMES EFFECTIVE], the
Commission will adjust the assessment that would otherwise be payable
under the regulations in effect after that date by an amount equal to
75 percent of the difference between the amount that would have been
payable under the regulations that were previously in effect and the
amount that would have been payable under those regulations after they
were amended. In the second fiscal year after [INSERT DATE ON WHICH THE
FINAL RULE BECOMES EFFECTIVE], the Commission will adjust the
assessment by 50 percent of that difference. In the third fiscal year
after [INSERT DATE ON WHICH THE FINAL RULE BECOMES EFFECTIVE], the
Commission will adjust the assessment by 25 percent of the difference.
3. In Sec. 11.6, the title, the introductory sentence of paragraph
(a), and paragraph (i), are revised, and the cross-reference at the end
of the section is removed, to read as follows:
Sec. 11.6 Exemption of State and municipal licensees and exemptees.
(a) Bases for exemption. A State or municipal licensee or exemptee
may claim total or partial exemption from the assessment of annual
charges upon one or more of the following grounds:
* * * * *
(i) Application for exemption. Applications for exemption from
payment of annual charges shall be signed by an authorized executive
officer or chief accounting officer of the licensee or exemptee and
verified under oath. An original and three copies of such application
shall be filed with the Commission within the time allowed (by
Sec. 11.28) for the payment of the annual charges. If the licensee or
exemptee, within the time allowed for the payment of the annual
charges, files notice that it intends to file an application for
exemption, an additional period of 30 days is allowed within which to
complete and file the application for exemption. The filing of an
application for exemption does not by itself alleviate the requirement
to pay the annual charges, nor does it exonerate the licensee or
exemptee from the assessment of penalties under Sec. 11.21. If a bill
for annual charges becomes payable after an application for an
exemption has been filed and while the application is still pending for
decision, the bill may be paid under protest and subject to refund.
4. Section 11.20 is revised to read as follows:
Sec. 11.20 Time for payment.
Annual charges must be paid no later than 30 days after rendition
of a bill by the Commission. If the licensee or exemptee believes that
the bill is incorrect, no later than 30 days after its rendition the
licensee or exemptee may file an appeal of the bill with the Chief
Financial Officer. No later than 30 days after the date of issuance of
the Chief Financial Officer's decision on the appeal, the licensee or
exemptee may file a request for rehearing of that decision pursuant to
Sec. 385.713 of this chapter. In the event that a timely appeal to the
Chief Financial Officer or a timely request to the Commission for
rehearing is filed, the payment of the bill may be made under protest,
and subject to refund pending the outcome of the appeal or rehearing.
PART 381--FEES
5. The authority citation for part 381 continues to read as
follows:
Authority: 15 U.S.C. 717-717w; 16 U.S.C. 791-828c, 2601-2645; 31
U.S.C. 9701; 42 U.S.C. 7101-7352; and 49 U.S.C. 1-27.
Sec. 381.601 [Removed]
6. Section 381.601 is removed, and subpart F is reserved.
Alternative B
PART 11--ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT
1. The authority citation for part 11 continues to read as follows:
Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352.
2. Section 11.1 is revised to read as follows:
Sec. 11.1 Costs of administration.
(a) Authority. Pursuant to section 10(e) of the Federal Power Act
and section 3401 of the Omnibus Budget Reconciliation Act of 1986, the
Commission will assess reasonable annual charges against licensees and
exemptees to reimburse the United States for the costs of
administration of the Commission's hydropower regulatory program.
(b) Scope. The annual charges under this section will be charged to
and allocated among:
(1) All licensees;
(2) All holders of exemptions under section 30 of the Federal Power
Act; and
(3) All holders of exemptions under sections 405 and 408 of the
Public Utility Regulatory Policies Act of 1978, as amended by section
408 of the Energy Security Act of 1980. The assessments will include
all such licensed and exempted projects that have been constructed, and
all such licensed and exempted projects whose construction has been
commenced. In the event that construction commences during a fiscal
year, the charges will be prorated based on the day on which
construction commenced.
(c) Licenses and exemptions other than State or municipal. For
licensees and exemptees, other than State or municipal:
(1) A determination shall be made for each fiscal year of the costs
of administration of Part I of the Federal Power Act chargeable to such
licensees or exemptees, from which shall be deducted any administrative
costs that are stated in the license or exemption or fixed by the
Commission in determining headwater benefit payments.
(2) For each fiscal year the costs of administration determined
under paragraph (c)(1) of this section will be assessed against such
licensee or exemptee in the proportion that the annual charge factor
for each such project bears to the total of the annual charge factors
under all such outstanding licenses and exemptions.
(3) The annual charge factor for each such project shall be found
as follows:
(i) For a conventional project the factor is its authorized
installed capacity plus 150 times its annual energy output in millions
of kilowatt-hours.
(ii) For a pure pumped storage project the factor is its authorized
installed capacity.
(iii) For a mixed conventional-pumped storage project the factor is
its authorized installed capacity plus 150 times its gross annual
energy output in millions of kilowatt-hours less 100 times the annual
energy used for pumped storage pumping in millions of kilowatt-hours.
(iv) For purposes of determining their annual charges factor,
projects that are operated pursuant to an exemption or whose authorized
installed capacity does not exceed 1.5 megawatts will be deemed to have
an annual energy output of zero.
(4) To enable the Commission to determine such charges annually,
each licensee whose authorized installed capacity exceeds 1.5 megawatts
must file with the Commission, on or before November 1 of each year, a
statement under oath showing the gross amount of power generated (or
produced by nonelectrical equipment) and the amount of power used for
pumped storage pumping by the project during the preceding fiscal year,
expressed in kilowatt hours. If any licensee does not report the gross
energy output of its project within the time specified above, the
Commission's staff will estimate the energy output and this estimate
may be used in lieu of the filings required by this section made by
such licensee after November 1.
(d) State and municipal licensees and exemptees. For State or
municipal licensees and exemptees:
(1) A determination shall be made for each fiscal year of the cost
of administration under Part I of the Federal Power Act chargeable to
such licensees and exemptees, from which shall be deducted any
administrative costs that are stated in the license or exemption or
that are fixed by the Commission in determining headwater benefit
payments.
(2) An exemption will be granted to a licensee or exemptee to the
extent, if any, to which it may be entitled under section 10(e) of the
Act provided the data is submitted as requested in paragraphs (d) (4)
and (5) of this section.
(3) For each fiscal year the total actual cost of administration as
determined under paragraph (d)(1) of this section will be assessed
against each such licensee or exemptee (except to the extent of the
exemptions granted pursuant to paragraph (d)(2) of this section) in the
proportion that the authorized installed capacity of each such project
bears to the total such capacity under all such outstanding licenses or
exemptions.
(4) To enable the Commission to compute on the bill for annual
charges the exemption to which State and municipal licensees and
exemptees are entitled because of the use of power by the licensee or
exemptees for State or municipal purposes, each such licensee or
exemptee must file with the Commission, on or before November 1 of each
year, a statement under oath showing the following information with
respect to the power generated by the project and the disposition
thereof during the preceding fiscal year, expressed in kilowatt-hours:
(i) Gross amount of power generated by the project.
(ii) Amount of power used for station purposes and lost in
transmission, etc.
(iii) Net amount of power available for sale or use by licensee or
exemptee, classified as follows:
(A) Used by licensee or exemptee.
(B) Sold by licensee or exemptee.
(5) When the power from a licensed or exempted project owned by a
State or municipality enters into its electric system, making it
impracticable to meet the requirements of this section with respect to
the disposition of project power, such licensee or exemptee may, in
lieu thereof, furnish similar information with respect to the
disposition of the available power of the entire electric system of the
licensee or exemptee.
(e) Transmission lines. For projects involving transmission lines
only, the administrative charge will be stated in the license.
(f) Minimum and maximum charges. (1) The minimum annual charge
under this section will be $100 per year for each licensed or exempted
project, subject to reduction based on partial or total exemption
pursuant to paragraph (d)(4) of this section.
(2) No licensed or exempted project's annual charge may exceed a
maximum charge established each year by the Commission to equal 2.0
percent of the adjusted costs of administration of the hydropower
regulatory program. For every project with an annual charge determined
to be above the maximum charge, that project's annual charge will be
set at the maximum charge, and any amount above the maximum charge will
be reapportioned to the remaining projects. The reapportionment will be
computed using the method outlined in paragraphs (c) and (d) of this
section (but excluding any project whose annual charge is already set
at the maximum amount). This procedure will be repeated until no
project's annual charge exceeds the maximum charge.
(g) Commission's costs. (1) With respect to costs incurred by the
Commission, the assessment of annual charges will be based on an
estimate of the costs of administration of Part I of the Federal Power
Act that will be incurred during the fiscal year in which the annual
charges are assessed. After the end of the fiscal year, the assessment
will be recalculated based on the costs of administration that were
actually incurred during that fiscal year; the actual costs will be
compared to the estimated costs; and the difference between the actual
and estimated costs will be carried over as an adjustment to the
assessment for the subsequent fiscal year.
(2) The issuance of bills based on the administrative costs
incurred by the Commission during the year in which the bill is issued
will commence in 1993. The annual charge for the administrative costs
that were incurred in fiscal year 1992 will be billed in 1994. At the
licensee's option, the charge may be paid in three equal annual
installments in fiscal years 1994, 1995, and 1996, plus any accrued
interest. If the licensee elects the three-year installment plan, the
Commission will accrue interest (at the most recent yield of two-year
Treasury securities) on the unpaid charges and add the accrued interest
to the installments billed in fiscal years 1995 and 1996.
(h) In making their annual reports to the Commission on their costs
in administering Part I of the Federal Power Act, the United States
Fish and Wildlife Service and the National Marine Fisheries Service are
to deduct any amounts that were deposited into their Treasury accounts
during that year as reimbursements for conducting studies and reviews
pursuant to section 30(e) of the Federal Power Act.
(i) Definition. As used in paragraph (c) of this section,
``authorized installed capacity'' means the lesser of the ratings of
the generator or turbine units. The rating of a generator is the
product of the continuous-load capacity rating of the generator in
kilovolt-amperes (kVA) and the system power factor in kW/kVA. If the
licensee or exemptee does not know its power factor, a factor of 1.0
kW/kVA will be used. The rating of a turbine is the product of the
turbine's capacity in horsepower (hp) at maximum head gate opening
under the manufacturer's rating head times a conversion factor of 0.75
kW/hp. If the generator or turbine installed has a rating different
from that authorized in the license or exemption, or the installed
generator is rewound or otherwise modified to change its rating, or the
turbine is modified to change its rating, the licensee or exemptee must
apply to the Commission to amend its authorized installed capacity to
reflect the change.
(j) Transition. For a license having the capacity of the project
for annual charge purposes stated in horsepower, that capacity shall be
deemed to be the capacity stated in kilowatts elsewhere in the license,
including any amendments thereto.
3. In Sec. 11.6, the title, the introductory sentence of paragraph
(a), and paragraph (i), are revised, and the cross-reference at the end
of the section is removed, to read as follows:
Sec. 11.6 Exemption of State and municipal licensees and exemptees.
(a) Bases for exemption. A State or municipal licensee or exemptee
may claim total or partial exemption from the assessment of annual
charges upon one or more of the following grounds:
* * * * *
(i) Application for exemption. Applications for exemption from
payment of annual charges shall be signed by an authorized executive
officer or chief accounting officer of the licensee or exemptee and
verified under oath. An original and three copies of such application
shall be filed with the Commission within the time allowed (by
Sec. 11.28) for the payment of the annual charges. If the licensee or
exemptee, within the time allowed for the payment of the annual
charges, files notice that it intends to file an application for
exemption, an additional period of 30 days is allowed within which to
complete and file the application for exemption. The filing of an
application for exemption does not by itself alleviate the requirement
to pay the annual charges, nor does it exonerate the licensee or
exemptee from the assessment of penalties under Sec. 11.21. If a bill
for annual charges becomes payable after an application for an
exemption has been filed and while the application is still pending for
decision, the bill may be paid under protest and subject to refund.
4. Section 11.20 is revised to read as follows:
Sec. 11.20 Time for payment.
Annual charges must be paid no later than 30 days after rendition
of a bill by the Commission. If the licensee or exemptee believes that
the bill is incorrect, no later than 30 days after its rendition the
licensee or exemptee may file an appeal of the bill with the Chief
Financial Officer. No later than 30 days after the date of issuance of
the Chief Financial Officer's decision on the appeal, the licensee or
exemptee may file a request for rehearing of that decision pursuant to
Sec. 385.713 of this chapter. In the event that a timely appeal to the
Chief Financial Officer or a timely request to the Commission for
rehearing is filed, the payment of the bill may be made under protest,
and subject to refund pending the outcome of the appeal or rehearing.
PART 381--FEES
5. The authority citation for Part 381 continues to read as
follows:
Authority: 15 U.S.C. 717-717w; 16 U.S.C. 791-828c, 2601-2645; 31
U.S.C. 9701; 42 U.S.C. 7101-7352; and 49 U.S.C. 1-27.
Sec. 381.601 [Removed]
6. Section 381.601 is removed, and subpart F is reserved.
Appendix A
Note: This Appendix will not be published in the Code of Federal
Regulations.
The table in Appendix A shows illustrative annual charges for
representative municipal and non-municipal licensees and exemptees. It
is based on the regulatory scheme described in the Alternative A
regulatory text at the end of the NOPR. Thus, the table is based on
allocation of all of the annual charges among a single class of
licensees and exemptees, including all major and minor municipal and
non-municipal licensees and all exemptees. The allocation is based
solely on the respective capacity of each hydropower project as
measured in kilowatts, with a minimum charge of $100 and a maximum
charge of two percent of the total of all charges. Assessments would
not commence prior to the commencement of project construction.
Finally, the table reflects the charges as they would become due over a
three-year phase-in period.
FY 1993 ANNUAL CHARGES
----------------------------------------------------------------------------------------------------------------
Proposed method charge
Project ID and KW authorized Current method ---------------------------------------------------------------
company name charge Year 1 Year 2 Year 3 Year 4
----------------------------------------------------------------------------------------------------------------
Exemptions:
06375Heed Co.
Inc............ 116 0 100 100 100 100
08732Manassas,
City of........ 1,200 0 400 700 1,100 1,400
10113Perpetual
Storage, Inc... 5,000 0 1,600 3,000 4,400 5,700
Major Municipal
Licenses:
02183Grand River
Dam Authority.. 99,750 62,000 84,000 95,000 104,000 113,000
02216Power Auth.
of the State of
New York....... 2,815,500 1,361,000 1,027,000 1,027,000 1,027,000 1,027,000
02246Yuba County
Water Agency... 361,875 225,000 305,000 343,000 379,000 411,000
Major Non-
Municipal
Licenses:
01025Safe Harbor
Water Power
Corp........... 424,650 504,000 560,000 533,000 507,000 483,000
01390Southern
California
Edison Co...... 3,015 3,600 4,000 3,800 3,600 3,400
01971Idaho Power
Company........ 1,166,925 1,474,000 1,027,000 1,027,000 1,027,000 1,027,000
02071Pacificorp
DBA Utah Power
& Light........ 105,000 146,000 156,000 143,000 131,000 119,000
02408Alabama
Power Co....... 57,975 81,000 87,000 79,000 72,000 66,000
Minor Municipal
Licenses:
03777Rollingsfor
d, Town of (NH) 1,493 100 600 1,000 1,300 1,700
06514Marshall,
City of (MI)... 323 22 100 200 300 400
11006Lewiston,
City of (ME)... 998 67 400 600 900 1,100
Minor Non-
Municipal
Licenses:
07242STS
Hydropower, Ltd 1,125 75 400 700 1,000 1,300
07656Dodson,
John A......... 75 5 100 100 100 100
Pure Pumped
Storage
Licenses:
02355Philadelphi
a Electric
Company........ 800,250 763,000 898,000 903,000 906,000 910,000
02716Virginia
Electric and
Power Company.. 2,100,000 2,002,000 1,027,000 1,027,000 1,027,000 1,027,000
02735Pacific Gas
& Electric
Company........ 1,050,000 1,001,000 1,027,000 1,027,000 1,027,000 1,027,000
09423Summit
Energy Storage,
Inc............ 1,500,000 1,430,000 0 0 0 0
----------------------------------------------------------------------------------------------------------------
Notes:
--The maximum charge under ``Proposed Method Charge'' is $1,027,000.
--This table addresses only the Commission's portion of the administrative annual charge statement.
In FY 1993, an additional 7.5% was billed by the Commission for other agencies' administrative costs.
Appendix B
Note: This Appendix will not be published in the Code of Federal
Regulations.
The table in Appendix B shows illustrative annual charges for
representative municipal and non-municipal licensees and exemptees
based on the regulatory scheme described in the Alternative B
regulatory text at the end of the NOPR. Thus, the table retains the
current separate categories and formulae for major municipal and non-
municipal licensees. Minor licensees and exemptees are classified with
the comparable groups of major licensees and their charges are assessed
pursuant to the formulae currently used for those groups.
FY 1993 Annual Charges
------------------------------------------------------------------------
Project ID and company Current method Proposed
name KW authorized charge method charge
------------------------------------------------------------------------
Exemptions:
06375Heed Co. Inc....... 116 0 100
08732Manassas, City of.. 1,200 0 700
10113Perpetual Storage,
Inc.................... 5,000 0 5,300
Major Municipal
Licenses:
02183Grand River Dam
Authority.............. 99,750 62,000 61,000
02216Power Auth of the
State of New York...... 2,815,500 1,361,000 1,027,000
02246Yuba County Water
Agency................. 361,875 225,000 220,000
Major Non-Municipal
Licenses:
01025Safe Harbor Water
Power Corp............. 424,650 504,000 595,000
01390Southern California
Edison Co.............. 3,015 3,600 4,000
01971Idaho Power Company 1,166,925 1,474,000 1,027,000
02071Pacificorp DBA Utah
Power & Light.......... 105,000 146,000 178,000
02408Alabama Power Co... 57,975 81,000 99,000
Minor Municipal
Licenses:
03777Rollingsford, Town
of (NH)................ 1,493 100 900
06514Marshall, City of
(MI)................... 323 22 200
11006Lewiston, City of
(ME)................... 998 67 600
Minor Non-Municipal
Licenses:
07242STS Hydropower,
Ltd.................... 1,125 75 1,200
07656Dodson, John A..... 75 5 100
Pure Pumped Storage
Licenses:
02355Philadelphia
Electric Company....... 800,250 763,000 845,000
02716Virginia Electric
and Power Company...... 2,100,000 2,002,000 1,027,000
02735Pacific Gas &
Electric Company....... 1,050,000 1,001,000 1,027,000
09423Summit Energy
Storage, Inc........... 1,500,000 1,430,000 0
------------------------------------------------------------------------
Notes:
--The maximum charge under ``Proposed Method Charge'' is $1,027,000.
--This table addresses only the Commission's portion of the
administrative annual charge statement. In FY 1993, an additional 7.5%
was billed by the Commission for other agencies' administrative costs.
Appendix C
Note: This Appendix will not be published in the Code of Federal
Regulations.
The table in Appendix C shows the approximate amounts currently
assessed to certain categories of licensees and exemptees, the
estimated amounts that would be assessed under the methodology applied
in Appendix A, and the estimated amounts that would be assessed under
the methodology applied in Appendix B.
Totals by Alternative and Category--Appendix A
----------------------------------------------------------------------------------------------------------------
Adm Assessed Year 1 Year 2 Year 3 Year 4 Appendix B
----------------------------------------------------------------------------------------------------------------
Exemption....... 0 200,000 400,000 600,000 800,000 600,000
Maj Muni Lic.... 8,600,000 10,700,000 11,700,000 12,700,000 13,500,000 8,300,000
Min Muni Lic.... 3,000 16,000 27,000 37,000 47,000 25,000
Maj NonMuni Lic. 24,600,000 25,600,000 24,000,000 22,400,000 20,900,000 28,200,000
Min NonMuni Lic. 13,600 69,000 116,000 160,000 202,000 187,000
Pure Pumped Sto. 13,400,000 9,300,000 9,300,000 9,300,000 9,300,000 9,000,000
Mixed PS/conv... 3,000,000 3,500,000 3,500,000 3,600,000 3,600,000 3,200,000
----------------------------------------------------------------------------------------------------------------
[FR Doc. 94-2318 Filed 2-1-94; 8:45 am]
BILLING CODE 6717-01-P
