[Federal Register Volume 63, Number 95 (Monday, May 18, 1998)]
[Notices]
[Pages 27278-27279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13104]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Amistad and Falcon Projects--Notice of Order Confirming and
Approving an Extension of the Power Rate Formula--WAPA-81
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order.
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SUMMARY: This action is to extend the existing Amistad and Falcon
Projects' power rate formula until June 7, 1999. Without this action,
the existing power rate formula will expire June 7, 1998; and no rate
formula will be in effect for this service.
FOR FURTHER INFORMATION CONTACT: Mr. Dave Sabo, CRSP Manager, CRSP
Customer Service Center, Western Area Power Administration, P.O. Box
11606, Salt Lake City, UT 84147-0606, telephone (801) 524-5493.
SUPPLEMENTARY INFORMATION: By Amendment No. 3 to Delegation Order No.
0204-108, published November 10, 1993 (58 FR 59716), the Secretary of
Energy delegated (1) the authority to develop long-term power and
transmission rates on a nonexclusive basis to the Administrator of the
Western Area Power Administration (Western); (2) the authority to
confirm, approve, and place such rates into 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 Federal Energy Regulatory Commission (FERC).
Pursuant to Delegation Order No. 0204-108 and existing Department
of Energy (DOE) procedures for public participation in power rate
adjustments at 10 CFR Part 903, the power rate formula for Western's
Amistad and Falcon Projects was submitted to FERC for confirmation and
approval on June 10, 1993. On September 29, 1993, in Docket No. EF93-
5101-000 at 64 FERC para. 62,225, FERC issued an order confirming,
approving, and placing into effect on a final basis the power rate
formula for the Amistad and Falcon Projects. The rate was approved for
the 5-year period beginning June 8, 1993, and ending June 7, 1998.
All of the generation from these projects is marketed by Western
under the terms of Contract No. 7-07-50-P0890 dated August 9, 1977, and
amended on April 10, 1986. According to the terms of the Contract, the
customers, Medina Electric Cooperative, Inc. and South Texas Electric
Cooperative, Inc., agreed to purchase the
[[Page 27279]]
output of the Amistad and Falcon Powerplants for a 50-year period,
beginning when electrical service initially became available. The
Cooperatives agreed to take all Amistad and Falcon Projects' power and
to pay the United States annual installments that are calculated to
repay the power investment costs with interest, within 50 years, and
annual operation, maintenance, replacement, and administration costs of
the projects.
Following review of Western's proposal within DOE, I have approved
Rate Order No. WAPA-81, which extends the existing power rate formula
for Amistad and Falcon Projects until June 7, 1999.
Dated: May 6, 1998.
Elizabeth A. Moler,
Deputy Secretary.
[Rate Order No. WAPA-81]
In the Matter of: Western Area Power Administration, Extension
for Amistad and, Falcon Projects Power Rate Formula
Order Confirming and Approving an Extension of the Amistad and Falcon
Projects' Power Rate Formula
June 7, 1998
This rate formula was established pursuant to Section 302(a) of the
Department of Energy (DOE) Organization Act, 42 U.S.C. 7152(a), through
which the power marketing functions of the Secretary of the Interior
and the Bureau of Reclamation (Reclamation) under the Reclamation Act
of 1902, ch. 1093, 32 Stat. 388, 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 other acts specifically
applicable to the Amistad Project and the Falcon Projects were
transferred to and vested in the Secretary of Energy (Secretary).
By Amendment No. 3 to Delegation Order No. 0204-108, published
November 10, 1993 (58 FR 59716), the Secretary delegated (1) the
authority to develop long-term power and transmission rates on a
nonexclusive basis to the Administrator of the Western Area Power
Administration (Western); (2) the authority to confirm, approve, and
place such rates into 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
Federal Energy Regulatory Commission (FERC). This disapprove such rates
to the Federal Energy Regulatory Commission (FERC). This rate extension
is issued pursuant to the Delegation Order and the DOE rate extension
procedures at 10 CFR Part 903.
Background
In the order issued September 29, 1993, at 64 FERC para. 62,225, in
Docket No. EF93-5101-000, FERC confirmed, approved, and placed into
effect on a final basis the power rate formula for the Amistad and
Falcon Projects. The rate formula was approved for the period from June
8, 1993, through June 7, 1998.
Discussion
All of the generation from these projects is marketed by Western
under the terms of Contract No. 7-07-50-P0890 dated August 9, 1977, and
amended on April 10, 1986. According to the terms of the Contract, the
customers, Medina Electric Cooperative, Inc. and South Texas Electric
Cooperative, Inc., agreed to purchase the output of the Amistad and
Falcon Powerplants for a 50-year period, beginning when electrical
service initially became available. The Cooperatives agreed to take all
Amistad and Falcon Projects' power and to pay the United States annual
installments that are calculated to repay the power investment costs
with interest, within 50 years, and annual operation, maintenance,
replacement, and administration costs of the projects.
On June 7, 1998, Western's Amistad and Falcon power rate formula
will expire. Pursuant to 10 CFR 903.23, Western proposes to extend the
existing rate formula until June 7, 1999, to determine whether it
should make any changes in the present rate formula and Power Repayment
Study presentation. During the early part of FY 1999, Western will
begin a public rate adjustment process to this effect with the
publication of a notice in the Federal Register.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary, I hereby extend for a period, effective June 8,
1998, through June 7, 1999, the existing rate formula for the Amistad
and Falcon Powerplants.
Dated: May 6, 1998.
Elizabeth A. Moler,
Deputy Secretary.
[FR Doc. 98-13104 Filed 5-15-98; 8:45 am]
BILLING CODE 6450-01-P
