[Federal Register Volume 60, Number 107 (Monday, June 5, 1995)]
[Notices]
[Pages 29586-29587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13680]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Stampede Division, Washoe Project--Proposed Nonfirm Power Rate
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Stampede Division, Washoe Project Nonfirm
Energy Rate Adjustment.
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SUMMARY: The Western Area Power Administration (Western) is proposing a
rate adjustment for nonfirm energy from the Stampede Division, Washoe
Project (Stampede). Stampede is located in Sierra County, California.
The power repayment study and other analyses indicate that the proposed
ceiling rate for nonfirm energy provides sufficient revenue to pay all
annual costs (including interest expense), plus repayment of required
investment within the allowable time period. Details regarding the
proposed rates are outlined in a rate brochure to be provided to all
interested parties. Proposed rates for nonfirm energy are scheduled to
become effective October 1, 1995.
This notice provides for proposed floor and ceiling rates that are
intended to ensure the maximum reasonable annual repayment of the
Stampede power investment at marketable rates. The proposed formula for
the floor rate will be no less than 85 percent of the then-effective
non-time-differentiated rate as provided in Sierra Pacific Power
Company's (SPPC) California Quarterly Short-Term Purchase Price
Schedule for As-Available Purchases from Qualifying Facilities with
Capacities of 100 kilowatts (kW) or Less (CSPP). This floor rate
reflects the rate used to determine a value of an energy exchange
account between Western and SPPC for the benefit of project-use
facilities. The CSPP is filed with the California Public Utilities
Commission (CPUC) on a semi-annual basis. The ceiling rate will be the
rate determined by Western to be necessary to repay the Stampede power
investment and annual expenses over the remaining repayment period of
the power facilities.
Under the proposed rate schedule, Western will conduct a bidding
process for the Stampede nonfirm energy that is available after
project-use loads have been met, giving priority to preference
entities. The nonfirm Stampede energy will be sold to the highest
bidder, provided that the bid price is between the proposed floor and
ceiling rates.
On June 7, 1991, the Federal Energy Regulatory Commission (FERC)
approved the rate procedure for Stampede in Docket No. EF90-5161-000,
which expires on September 30, 1995. FERC approved Rate Schedule SNF-3
through September 30, 1994, 55 FERC P61,391. On September 14, 1994, the
Deputy Secretary of Energy extended the rate schedule until September
30, 1995 pursuant to Delegation Order No. 0204-108, 59 FR 488875. This
rate procedure established an annual bidding process for the sale of
Stampede nonfirm energy. The nonfirm energy would be sold to the entity
offering the highest price, provided that the bid price is between the
floor and ceiling rates established by Western. Since 1991, Western has
not received a bid for Stampede energy that fully complied with the
FERC-approved bidding procedure. As a result, Western has been able to
market Stampede nonfirm energy only under short-term agreements. In
addition, prior to 1994, Western could not provide Stampede power to
project-use loads, as announced in the Federal Register (50 FR 21350)
on May 23, 1985. To serve project-use loads and market Stampede nonfirm
energy, Western negotiated an agreement in 1994 with SPPC that provides
for an annual energy exchange account for Stampede energy. As members
of the Western Systems Power Pool (WSPP), Western and SPPC agreed that
SPPC would accept delivery of all energy generated by Stampede into its
electrical system. The dollar value of the Stampede energy received by
SPPC during any month will be credited into the Stampede Energy
Exchange Account [[Page 29587]] (SEEA). Western can utilize the SEEA to
benefit project use facilities, market Stampede nonfirm energy to
preference entities over the SPPC transmission system at mutually
agreed points of delivery, or sell a portion of the Stampede energy to
SPPC. So long as there is a balance in the SEEA, Western may direct
SPPC to do any combination of the above transactions in any month. The
existing and proposed floor and ceiling rates for Stampede nonfirm
energy are shown in the table below:
Percentage Change in Nonfirm Energy Rate
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Existing
rates as Percent
Nonfirm energy rate of July Proposed rates October 1, 1995 change
1, 1994
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Floor rate (mills/kWh)..................... 27.69 See formula................................... N/A
Ceiling rate (mills/kWh)................... 67.39 72.307........................................ 7
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Stampede is a power system which normally has annual sales less than
100 million kWh and an installed capacity of less than 20,000 kilowatt;
therefore, the proposed rates constitute a minor rate adjustment as
defined by the procedures for public participation in rate adjustments,
as cited below. Since this is a minor rate adjustment, no public
meetings are scheduled; however, Western will accept comments from
interested parties. After review of public comments, Western will
recommend proposed rates for approval on an interim basis by the Deputy
Secretary of the Department of Energy (DOE).
DATES: The consultation and comment period will begin with publication
of this notice in the Federal Register and will end July 5, 1995.
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: James C. Feider, Area Manager,
Sacramento Area Office, Western Area Power Administration, 1825 Bell
Street, Suite 105, Sacramento, CA 95825-1097, (916) 649-4418.
SUPPLEMENTARY INFORMATION: Nonfirm energy rates for Stampede 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. 372 et
seq.), and acts amendatory or supplementary to the foregoing acts,
particularly section 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)) and the Act of August 1, 1956, 70 Stat. 775.
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 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 FERC. Existing DOE procedures for public
participation in rate adjustments (10 CFR Part 903) became effective on
September 18, 1985.
Availability of Information
The rate brochure, studies, comments, letters, memorandums, and
other documents made or kept by Western for the purpose of developing
the proposed rates for Stampede nonfirm energy are available for
inspection and copying at Western's Sacramento Area Office, located at
1825 Bell Street, Suite 105, Sacramento, CA 95825-1097.
Regulatory Flexibility Analysis
Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et
seq.), each agency, when required by 5 U.S.C. 553 to publish a proposed
rule, is further required to prepare and make available for public
comment an initial regulatory flexibility analysis to describe the
impact of the proposed rule on small entities. In this instance, the
initiation of the Stampede nonfirm energy rate adjustment is related to
nonregulatory services provided by Western at a particular rate. Under
5 U.S.C. 601(2), rules of particular applicability relating to rates or
services are not considered rules within the meaning of the act. Since
the nonfirm energy rates are of limited applicability, no flexibility
analysis is required.
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. A categorical exclusion was issued on
April 15, 1995.
Issued in Golden, Colorado, May 10, 1995.
J.M. Shafer,
Administrator.
[FR Doc. 95-13680 Filed 6-2-95; 8:45 am]
BILLING CODE 6450-01-P
