[Federal Register Volume 59, Number 113 (Tuesday, June 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14438]
[[Page Unknown]]
[Federal Register: June 14, 1994]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of proposed extension of integrated system power rates
and opportunities for public review and comment.
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SUMMARY: The Current Integrated System Rates were approved by the
Federal Energy Regulatory Commission (FERC) on September 18, 1991,
[EF91-4011-000, 56 FERC 61, 398]. These rates were effective October 1,
1990, and will expire September 30, 1994. The Administrator,
Southwestern, has prepared Current and Revised 1994 Power Repayment
Studies for the Integrated System which show the need for a minor rate
adjustment of $726,051 (0.8 percent increase) in annual revenues. In
accordance with Southwestern's rate adjustment threshold, dated June
23, 1987, the Administrator, Southwestern, may determine, on a case by
case basis, that for a revenue decrease or increase in the magnitude of
plus-or-minus two percent, deferral of a formal rate filing is in the
best interest of the Government. Also, the Deputy Secretary of Energy
has the authority to extend rates, previously confirmed and approved by
FERC, on an interim basis, pursuant to 10 CFR 903.22(h) and 903.23(a).
In accordance with DOE rate extension authority and Southwestern's rate
adjustment threshold, the Administrator is proposing that the rate
adjustment be deferred and that the current rates be extended for a
one-year period effective through September 30, 1995.
DATES: Written comments are due on or before June 29, 1994.
ADDRESSES: Written comments should be submitted to the Administrator,
Southwestern Power Administration, U.S. Department of Energy, P.O. Box
1619, Tulsa, Oklahoma 74101.
FOR FURTHER INFORMATION CONTACT: George C. Grisaffe, Assistant
Administrator, Office of Administration and Rates, Southwestern Power
Administration, Department of Energy, P.O. Box 1619, Tulsa, Oklahoma
74101, (918) 581-7419.
SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by
an Act of the U.S. Congress, Department of Energy Organization Act,
Public Law 95-91, dated August 4, 1977, and Southwestern's power
marketing activities were transferred from the Department of the
Interior to the Department of Energy, effective October 1, 1977.
Southwestern markets power from 24 multiple-purpose reservoir
projects with power facilities constructed and operated by the U.S.
Army Corps of Engineers. These projects are located in the States of
Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area
includes these states plus Kansas and Louisiana. Of the total, 22
projects comprise an Integrated System and are interconnected through
Southwestern's transmission system and exchange agreements with other
utilities. The other two projects (Sam Rayburn and Robert Douglas
Willis) are not interconnected with Southwestern's Integrated System.
Instead, their power is marketed under separate contracts through which
the two customers purchase the entire power output of the projects at
the dams.
Following Department of Energy Order Number RA 6120.2, the
Administrator, Southwestern, prepared a 1994 Current Power Repayment
Study (PRS) using existing system rate schedules. The Study shows the
actual status of repayment through FY 1993 at $288,259,891 on a total
investment of $971,634,103. The FY 1994 Revised PRS indicates the need
for an increase in annual revenues of $726,051, or 0.8 percent, over
and above the present annual revenues.
As a matter of practice, Southwestern would defer an indicated rate
adjustment that falls within Southwestern's plus-or-minus two percent
rate adjustment threshold. The threshold, which was established in
1987, was developed to add efficiency to the process of maintaining
adequate rates and is consistent with cost recovery criteria within DOE
Order Number RA 6120.2 regarding rate adjustment plans. The Integrated
System's FY 1993 (last year's) PRS concluded that the annual revenues
needed to be decreased by 1.1 percent. At that time, it was determined
prudent to defer the decrease in accordance with the established
threshold. As previously cited, the FY 1994 (this year's) PRS indicates
that revenues would need to be increased by 0.8 percent, or $726,051
per year. It once again seems prudent to defer a rate adjustment in
accordance with Southwestern's rate adjustment threshold and reevaluate
the ability of the existing rate to provide sufficient revenues to
satisfy costs projected in the FY 1995 (next year's) PRS.
On September 18, 1991, the current rate schedules for the
Integrated System were confirmed and approved by the FERC on a final
basis for a period that ends on September 30, 1994. In accordance with
10 CFR 903.22(h) and 903.23(a), the Deputy Secretary may extend
existing rates on an interim basis beyond the period specified by the
FERC. As a result of the benefits obtained by a rate adjustment
deferral and the Deputy Secretary's authority to extend a previously
approved rate, Southwestern's Administrator is proposing to extend the
current Integrated System rate schedules for the one-year period
beginning October 1, 1994, and extending through September 30, 1995.
Opportunity is presented for customers and interested parties to
receive copies of the study data for the Integrated System. If you
desire a copy of the Repayment Study Data Package for the Integrated
System, please submit your request to: Mr. George Grisaffe, Assistant
Administrator, Office of Administration and Rates, P.O. Box 1619,
Tulsa, OK 74101, (918) 581-7419.
Following review of the written comments, the Administrator will
submit the rate extension proposal for the Integrated System to the
Deputy Secretary of Energy for confirmation and approval.
Issued in Tulsa, Oklahoma, this 6th day of June, 1994.
J. M. Shafer,
Administrator.
[FR Doc. 94-14438 Filed 6-13-94; 8:45 am]
BILLING CODE 6450-01-P
