[Federal Register Volume 60, Number 54 (Tuesday, March 21, 1995)]
[Notices]
[Pages 14935-14936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6913]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Parker-Davis Project--Proposed Firm Power Rate and Firm and
Nonfirm Transmission Service Rates
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed Parker-Davis Project power rate and firm and
nonfirm transmission rate adjustments.
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SUMMARY: The Western Area Power Administration (Western) is initiating
rate adjustments for firm power and firm and nonfirm transmission
service for the Parker-Davis Project (P-DP). The power repayment study
and other analyses indicate that the revenues required to pay all
annual costs (including interest expense), plus repayment of required
investment within the allowable time period has decreased by
approximately $4.7 million since the last rate adjustment. The proposed
P-DP rates for firm power and firm and nonfirm transmission service are
expected to become effective October 1, 1995, and will supersede the
existing step two rates.
On January 6, 1994, the Deputy Secretary of the Department of
Energy (DOE) approved the existing rates for firm power and firm and
nonfirm transmission service on an interim basis. The existing rates
for firm power and firm and nonfirm transmission service were placed in
effect on February 1, 1994, and consisted of a two-step rate
adjustment. Step one of the existing rates was effective February 1,
1994, through September 30, 1995, and step two of the existing rates
was to be effective on October 1, 1995, through January 31, 1999. The
Federal Energy Regulatory Commission (FERC) confirmed and approved the
rates on October 14, 1994.
During this last P-DP rate adjustment process (WAPA-55), the
Arizona Power Pooling Association, Inc.; Arizona Power Authority; and
the Arizona Customer Group filed Motions To Intervene and Protest
FERC's confirmation and approval of the P-DP rates described in Rate
Order No. WAPA-55. On August 19, 1994, Western filed a Stipulation
Agreement signed by Western and these customers in which the
intervenors withdrew any protest and Western agreed to re-examine the
issues raised as well as commence a new rate adjustment proceeding
during fiscal year 1995.
Western has re-examined the issues raised during the last rate
adjustment process and has developed proposed P-DP rates to supersede
step two of the existing rates which were to become effective October
1, 1995, for firm power and firm and nonfirm transmission service. The
major differences between step two of the existing rates and the
proposed P-DP rates resulted from several activities which involved
Western working in partnership with the P-DP customers. First, future
revenue requirements were reduced by controlling Western's operation
and maintenance costs, and by decreasing the construction and
replacement program through the Engineering Ten Year Planning Process.
The Engineering Ten Year Planning Process includes a decision making
partnership among P-DP customers and Western.
Second, Western revised the allocation of costs between the power
and transmission customers which is described in a Costs Apportionment
Study. A working group including customer representatives, Western, and
the Bureau of Reclamation was formed to analyze the issues and concerns
expressed by the customers during the last rate adjustment process on
how costs were allocated between power and transmission. The working
group derived a new methodology for allocating these costs in a manner
deemed equitable. The new methodology also meets the concerns of both
P-DP customers and Western.
Third, the working group developed a revised rate design
methodology using the results from the Costs Apportionment Study. The
results from the Costs Apportionment Study were applied to total
revenue requirements instead of incremental revenue requirements as was
done to derive step two of the existing rates.
When compared to step two of the existing rates, the activities
stated resulted in a rate decrease for firm power customers and a rate
increase for firm and nonfirm transmission customers.
The proposed P-DP rates provide for an energy rate of 1.91 mills
per kilowatthour (mills/kWh) and a capacity rate of $2.06 per kilowatt/
month (kW/month) for a composite rate of 6.62 mills/kWh. The proposed
P-DP rates for transmission service provide for a firm transmission
service rate of $13.28 per kilowatt/year (kW/year) and a nonfirm
transmission service rate of 2.53 mills/kWh for P-DP and a firm
transmission service rate for the Salt Lake City Area/Integrated
Projects (SLCA/IP) of $6.64/kW/season. The SLCA/IP transmission service
is for the SLCA/IP customers' seasonal use of the P-DP transmission
system.
Table One compares step two of the existing rates with the proposed
P-DP rates.
[[Page 14936]]
Table One
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Step two of the existing Proposed rates October 1, Percent
Type of service rates October 1, 1995, 1995, through September 30, change
through January 31, 1999 2000 (%)
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Composite Rate........................... 12.01 mills/kWh............. 6.62 mills/kWh.............. -45
Energy Rate.............................. 6.01 mills/kWh.............. 1.91 mills/kWh.............. -68
Capacity Rate............................ $2.63 per kW/month.......... $2.06 per kW/month.......... -22
Firm Transmission Service................ $12.55 per kW/year.......... $13.28 per kW/year.......... 6
Nonfirm Transmission Service............. 2.39 mills/kWh.............. 2.53 mills/kWh.............. 6
Transmission Service for SLCA/IP......... $6.27 per kW/season......... $6.64 per kW/season......... 6
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Overall, annual revenue requirements for the proposed rates has
slightly increased as compared to step one of the existing rates and
has decreased as compared to step two of the existing rates. Table Two
shows a comparison of the annual revenue requirements for step one of
the existing rates, step two of the existing rates, and the proposed
rates.
Table Two
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Step one of the
existing rates Step two of the Proposed rates
(February 1, 1994, existing rates (October (October 1, 1995,
through September 30, 1, 1995, through through September 30,
1995) January 31, 1999) 2000)
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$37,209,290............ $42,099,987 $37,385,908
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Since the proposed P-DP rates constitute a major rate adjustment as
defined by the procedures for public participation in general rate
adjustments, as cited below, both a public information forum and a
public comment forum will be held. After review of public comments,
Western will recommend proposed P-DP rates for approval on an interim
basis by the Deputy Secretary of DOE (Deputy Secretary).
DATES: The consultation and comment period will begin with publication
of this notice in the Federal Register and will end not less than 90
days later, or June 21, 1995, whichever occurs last. A public
information forum will be held at 9:30 a.m. on April 5, 1995, at
Western's Phoenix Area Office, 615 South 43rd Avenue, Phoenix, Arizona.
A public comment forum at which Western will receive oral and written
comments will be held at 9:30 a.m. on May 15, 1995, also at Western's
Phoenix Area Office.
Written comments should be received by Western by the end of the
consultation and comment period to be assured consideration and should
be sent to the address below.
FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Area Manager,
Western Area Power Administration, Phoenix Area Office, P.O. Box 6457,
Phoenix, AZ 85005, (602) 352-2453.
SUPPLEMENTARY INFORMATION: Power and transmission rates for the P-DP
are established pursuant to the Department of Energy Organization Act
(42 U.S.C. 7101 et seq.), the Reclamation Act of 1902 (43 U.S.C. 392 et
seq.), as amended and supplemented by subsequent enactments,
particularly section 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and the Act of May 28, 1954 (ch. 241, 68 Stat. 143).
By Amendment No. 3 to Delegation Order No. 0204-108, published
November 10, 1993 (58 FR 59716), the Secretary of Energy (Secretary)
delegated (1) the authority to develop long-term power and transmission
rates on a nonexclusive basis to the Administrator of Western; (2) the
authority to confirm, approve, and place such rates in effect on an
interim basis to the Deputy Secretary; and (3) the authority to
confirm, approve, and place into effect on a final basis, to remand, or
to disapprove such rates to the FERC. Existing DOE procedures for
public participation in rate adjustments (10 CFR Part 903) became
effective on September 18, 1985 (50 FR 37837).
Availability of Information
All brochures, studies, comments, letters, memorandums, and other
documents made or kept by Western for the purpose of developing the
proposed P-DP rates for firm power and firm and nonfirm transmission
service are and will be made available for inspection and copying at
the Phoenix Area Office, 615 South 43rd Avenue, Phoenix, Arizona 85005.
Determination Under Executive Order 12866
DOE has determined that this is not a significant regulatory action
because it does not meet the criteria of Executive Order 12866, 58 FR
51735. Western has an exemption from centralized regulatory review
under Executive Order 12866; accordingly, no clearance of this notice
by the Office of Management and Budget is required.
Environmental Evaluation
In compliance with the National Environmental Policy Act of 1969
(NEPA), 42 U.S.C. 4321 et seq.; Council on Environmental Quality
Regulations (40 CFR Parts 1500-1508); and DOE NEPA Regulations (10 CFR
Part 1021), Western has determined that this action is categorically
excluded from the preparation of an environmental assessment or an
environmental impact statement.
Issued in Golden, Colorado, March 10, 1995.
J. M. Shafer,
Administrator.
[FR Doc. 95-6913 Filed 3-20-95; 8:45 am]
BILLING CODE 6450-01-P
