[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14555]
[[Page Unknown]]
[Federal Register: June 15, 1994]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam Project and Robert D. Willis Hydropower Project
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Proposed Sam Rayburn Dam and Robert Douglas Willis
power rates and opportunities for public review and comment.
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SUMMARY: The Administrator, Southwestern, has prepared Current and
Revised 1994 Power Repayment Studies for the Sam Rayburn Dam (Rayburn)
project and the Robert Douglas Willis (Willis) Hydropower project which
indicate the need for rate adjustments at both projects to meet cost
recovery criteria. These rate adjustments are needed primarily to
recover estimated increases in Corps of Engineers' operation and
maintenance expenses at the two hydropower projects. The proposed rate
for Rayburn increases annual revenue requirements approximately 4.4
percent from $2,076,444 to $2,168,136, beginning October 1, 1994. The
proposed rate for the Willis project increases annual revenue
requirements approximately 3.6 percent from $284,580 to $294,696,
beginning October 1, 1994. The Administrator has developed proposed
rate schedules for the Rayburn and Willis projects to recover the
required revenues.
DATES: A Public Information Forum will be held July 7, 1994, in Tulsa,
Oklahoma. A Public Comment Forum will be held August 1, 1994, in Tulsa,
Oklahoma. Written comments are due on or before August 15, 1994.
Revised rates for Sam Rayburn Dam and Robert D. Willis projects are
calculated based on an October 1, 1994, implementation date. Therefore,
to provide opportunities for public consultation and comment while also
meeting the October 1, 1994, date for implementation, Southwestern is
conducting a 60 day public notice and comment period (10 CFR
903.14(d)). This public participation period is reduced since there is
only a single customer for each project and those two customers
directly impacted have been informed of the impending rate increases;
any comments from the customers are expected to be developed well
within the 60 day period; coordination, if needed, can be accomplished
within that same period. In addition, Southwestern does not expect
much, if any, interest in these proceedings from any other entity.
[Note: The proposed rate change for the Willis project is classified as
a minor rate adjustment and does not require any comment period to
exceed 30 days (10 CFR 903.14).]
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: Mr. George C. Grisaffe, Assistant
Administrator, Office of Administration and Rates, Southwestern Power
Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa,
Oklahoma 74101 (918) 581-7419.
SUPPLEMENTARY INFORMATION: The U.S. Department of Energy (DOE) was
created by an Act of the U.S. Congress, Department of Energy
Organization Act, Pub. L. 95-91, dated August 4, 1977, and
Southwestern's power marketing activities were transferred from the
Department of Interior to the DOE, effective October 1, 1977.
Guidelines for preparation of power repayment studies are included in
DOE Order No. RA 6120.2, Power Marketing Administration Financial
Reporting. Procedures for Public Participation in Power and
Transmission Rate Adjustments of the Power Marketing Administrations
are found at Title 10, Part 903, Subpart A of the Code of Federal
Regulations (10 CFR 903).
Southwestern markets power from 24 multiple-purpose reservoir
projects with power facilities constructed and operated by the U.S.
Army Corps of Engineers (Corps). 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 the Integrated System and are generally
interconnected through Southwestern's transmission system and exchange
agreements with other utilities. The power produced by the remaining
two hydroelectric generating projects, Rayburn and Willis, is marketed
by Southwestern under separate contracts through which two customers
purchase the entire power output at each of the two projects. The
Rayburn project, located on the Angelina River within the Neches River
Basin, in eastern Texas, consists of two hydroelectric generating units
with a total capacity of 52.0 megawatts (MW). The Willis project is
located on the Neches River downstream from the Rayburn project and has
two hydroelectric generating units with a total capacity of 7.4 MW. The
two customers, Sam Rayburn Dam Electric Cooperative, Inc. (SRDEC) and
the Sam Rayburn Municipal Power Agency (SRMPA), currently receive the
entire output of the Rayburn and Willis projects, respectively. In the
case of Willis, SRMPA receives the entire electrical output of the
project as a result of its non-federally funding the construction of
the hydroelectric facilities at the project. SRDEC receives the entire
electrical output of the Rayburn project through a contract that
provides for an isolated rate. These projects are not currently
interconnected with Southwestern's Integrated System. A separate power
repayment study is prepared for each project and both have special
rates based on their non-interconnected operations. Following DOE Order
No. RA 6120.2 guidelines, the Administrator, Southwestern, prepared a
Current Power Repayment Study for both the Rayburn and Willis projects
using existing rates.
Both Current Power Repayment Studies indicated that the legal
requirement to repay the power-related costs, with interest, will not
be met without additional revenue. This revenue need results primarily
from increased annual operation and maintenance expenses projected by
the Corps. The Revised Power Repayment Study for Rayburn shows that
additional annual revenue of $91,692 (a 4.4 percent increase),
beginning October 1, 1994, is needed to satisfy repayment criteria.
This would increase revenues received from the Rayburn project customer
(SRDEC) from the current $2,076,444 to $2,168,136 annually. The Revised
Power Repayment Study for Willis shows that additional annual revenue
of $10,116 (a 3.6 percent increase), would provide sufficient revenues
for repayment of the projected expenses within the required period.
This would increase revenues received from the Willis project customer
(SRMPA) from the current $284,580 to $294,696 annually, beginning
October 1, 1994.
Opportunity is presented for customers and other interested parties
to receive copies of the Rayburn and Willis studies and the proposed
rate schedules. If you desire a copy of the Power Repayment Study Data
Package for either or both projects, submit your request to Mr. George
C. Grisaffe at the address cited above.
A Public Information Forum will be held at 1 p.m., Thursday, July
7, 1994, in Southwestern's offices, Room 1402, Williams Center Tower I,
One West Third Street, Tulsa, Oklahoma, to explain to customers and
interested parties the proposed rates and supporting studies. The Forum
will be conducted by a chairman who will be responsible for orderly
procedure. Questions concerning the rates, studies and information
presented at the Forum may be submitted from interested persons and
will be answered, to the extent possible, at the Forum. Questions not
answered at the Forum will be answered in writing, except that
questions involving voluminous data contained in Southwestern's records
may best be answered by consultation and review of pertinent records at
Southwestern's offices. Persons interested in attending the Public
Information Forum should indicate in writing by Monday, July 4, 1994,
their intent to appear at such Forum. Accordingly, if no one so
indicates their intent to attend, no such Forum will be held.
A Public Comment Forum will be held at 1 p.m., Monday, August 1,
1994, at the same location established for the Public Information
Forum. At the Public Comment Forum, interested persons may submit
written comments or make oral presentations of their views and
comments. This Forum will also be conducted by a chairman who will be
responsible for orderly procedure. Southwestern's representatives will
be present, and they and the chairman may ask questions of the
speakers. Persons interested in attending or speaking at the Public
Comment Forum should indicate in writing (use same address as used for
submitting comments) by Wednesday, July 27, 1994, their intent to
appear/speak at such Forum. Accordingly, if no one so indicates their
intent to attend, no such Forum will be held. The chairman may allow
others to speak if time permits.
A transcript of each Forum will be made. Copies of the transcripts
may be obtained from the transcribing service. Copies of all documents
introduced will be available from Southwestern upon request, for a fee.
Written comments on the proposed rates for either project are due on or
before August 15, 1994. Written comments should be submitted to the
Administrator, Southwestern Power Administration, U.S. Department of
Energy, P.O. Box 1619, Tulsa, Oklahoma 74101.
Following review of the oral and written comments and the
information gathered in the course of the proceedings, the
Administrator will submit the rate proposals, and Power Repayment
Studies in support of the proposed rates, to the DOE Deputy Secretary
for confirmation and approval on an interim basis, and to the Federal
Energy Regulatory Commission (FERC) for confirmation and approval on a
final basis. The FERC will allow the public an opportunity to provide
written comments on the proposed rate increases before making a final
decision.
Issued in Tulsa, Oklahoma, this 9th day of June, 1994.
Dallas Cooper,
Acting Administrator.
[FR Doc. 94-14555 Filed 6-14-94; 8:45 am]
BILLING CODE 6450-01-P
