[Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
[Notices]
[Pages 42559-42560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20283]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates; Notice of Order Approving an
Extension of Power Rates on an Interim Basis
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of an Extension of Power Rates-Integrated System.
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SUMMARY: The Deputy Secretary of Energy, acting under Amendment No. 3
to Delegation Order No. 0204-108, dated November 10, 1993, 58 FR 59717,
and pursuant to the implementation authorities in 10 CFR 903.22(h) and
903.23(a)(3), has approved Rate Order No. SWPA-32 which extends the
existing power rates for the Integrated System. This is an interim rate
action effective October 1, 1995, and extending for a period of one
year through September 30, 1996.
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 existing rate schedules for the
Integrated System were approved on a final basis by the Federal Energy
Regulatory Commission on September 18, 1991, for the period ending
September 30, 1994.
These rates were extended on an interim basis (through September
30, 1995) by the Deputy Secretary of Energy on August 24, 1994. On June
15, 1995, the Southwestern Power Administration (Southwestern)
published notice in the Federal Register, 60 FR 31464, of its intention
to seek a one-year extension of the existing power rate for the
Integrated System and provided for a 15-day comment period. No comments
were received. 10 CFR 903.22(h) and 903.23(a)(3) provide implementation
authority for such interim extension to the Deputy Secretary.
Following review of Southwestern's proposal within the Department
of Energy, I approved, Rate Order No. SWPA-32, on August 8, 1995, which
extends the existing Integrated System rates for one year beginning
October 1, 1995.
Issued at Washington, D.C., on August 8, 1995.
Bill. White,
Deputy Secretary.
(Deputy Secretary of Energy)
Order Approving Extension of Power Rates on an Interim Basis
In the matter of: Southwestern Power Administration--Integrated
System Rates. Rate Order No. SWPA-32.
August 8, 1995.
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, for the Southwestern Power
Administration were transferred to and vested in the Secretary of
Energy. By Delegation Order No. 0204-108, effective December 14, 1983,
48 FR 55664, the Secretary of Energy delegated to the Deputy Secretary
of Energy on a non-exclusive basis the authority to confirm, approve
and place into effect on an interim basis power and transmission rates,
and delegated to the Federal Energy Regulatory Commission (FERC) on an
exclusive basis the authority to confirm, approve and place in effect
on a final basis, or to disapprove power and transmission rates.
Amendment No. 1 to Delegation Order No. 0204-108, effective May 30,
1986, 51 FR 19744, revised the delegation of authority to confirm,
approve and place into effect on an interim basis power and
transmission rates by delegating such authority to the Under Secretary
of Energy rather than the Deputy Secretary of Energy. This delegation
was reassigned to the Deputy Secretary of Energy by Department of
Energy (DOE) Notice 1110.29, dated October 27, 1988, and clarified by
Secretary of Energy Notice SEN-10-89, dated August 3, 1989, and
subsequent revisions. By Amendment No. 2 to Delegation Order No. 0204-
108, effective August 23, 1991, 56 FR 41835, the Secretary of the
Department of Energy revised Delegation Order No. 0204-108 to delegate
to the Assistant Secretary, Conservation and Renewable Energy, the
authority which was previously delegated to the Deputy Secretary in
that Delegation Order. By Amendment No. 3 to Delegation Order No. 0204-
108, effective November 10, 1993, the Secretary of Energy redelegated
to the Deputy Secretary of Energy, the authority to confirm, approve
and place into effect on an interim basis power and transmission rates
of the Power Marketing Administrations. This rate order is issued by
the Deputy Secretary pursuant to said Amendment to Delegation Order No.
0204-108.
This is an interim rate extension. It is made pursuant to the
authorities as implemented in 10 CFR 903.22(h) and 903.23(a)(3).
Background
Southwestern Power Administration (Southwestern) currently has
marketing responsibility for 2.2 million kilowatts of power from 24
multiple-purpose reservoir projects, with power facilities constructed
and operated by the U.S. Army Corps of Engineers, generally in all or
portions of the states of Arkansas, Kansas, Louisiana, Missouri,
Oklahoma and Texas. The Integrated System, composed of 22 of the
projects, is interconnected through a transmission system presently
consisting of 138- and 161-kV high-voltage transmission lines, 69-kV
transmission lines, and numerous bulk power substations and switching
stations. In addition, contractual transmission arrangements provide
for integration of other projects into the system.
The remaining two projects, Sam Rayburn Dam and Robert Douglas
Willis, are isolated hydraulically and electrically from the
Southwestern transmission system, and their power is marketed under
separate contracts through which the customer purchases the entire
power output of the project at the dam. A separate Power Repayment
Study (PRS) is prepared for each isolated project, and each has a
special rate which is not a part of this study.
The existing rate schedules for the Integrated System were
confirmed and approved on a final basis by the FERC on September 18,
1991 for the period October 1, 1990 through September 30, 1994. These
rates were extended on an interim basis (through September 30, 1995) by
the Deputy Secretary of Energy on August 24, 1994. The FY 1995
Integrated System PRSs indicate the need for a rate adjustment of
$1,008,285 annually, or 1.07 percent.
Pursuant to implementing authority in 10 CFR 903(h) and
903.23(a)(3), the Deputy Secretary of Energy may extend a FERC-approved
rate on an interim basis. The Administrator, Southwestern, published
notice in the Federal Register on June 15, 1995, 60 FR 31464,
announcing a 15-day period for public review and comment concerning the
proposed interim rate extension. In addition, informal meetings were
held with customer representatives in April
[[Page 42560]]
and May 1995. Written comments were accepted through June 30, 1995. No
comments on the proposed interim extension were received.
Discussion
The existing Integrated System rates are based on the FY 1990 PRS.
PRSs have been completed on the Integrated System each year since
approval of the existing rates. Rate changes identified by the PRSs
since that period have indicated the need for minimal rate increases or
decreases. Since the revenue changes reflected by the PRSs were within
the plus-or-minus two percent Rate Adjustment Threshold established by
Southwestern's Administrator on June 23, 1987, these rate adjustments
were deferred in the best interest of the government and provided for
the next year's PRS to determine the appropriate level of revenues
needed for the next rate period.
The FY 1995 PRS indicates the need for a rate increase of 1.07
percent. As has been the case since the existing rates were approved,
the FY 1995 rate adjustment needed falls within Southwestern's plus-or-
minus two percent Rate Adjustment Threshold and would normally be
deferred. However, the existing rates expire on September 30, 1995.
Consequently, Southwestern proposes to extend the existing rates for a
one-year period ending September 30, 1996, on an interim basis under
the implementation authorities noted in 10 CFR 903.22(h) and
903.23(a)(3).
Southwestern continues to make significant progress toward
repayment of the Federal investment in the Integrated System. Through
FY 1994, status of repayment for the Integrated System was
$319,846,125, which represents approximately 33 percent of the
$982,356,193 Federal investment for the Integrated System. The status
has increased almost 63 percent since the existing rates were placed in
effect.
Information regarding this rate extension, including studies and
other supporting material, is available for public review and comment
in the offices of Southwestern Power Administration, One West Third
Street, Tulsa, Oklahoma 74101.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby extend on an interim basis, for
the period of one year, effective October 1, 1995, the current FERC-
approved Integrated System Rates for the sale of power and energy.
Issued at Washington, DC, on August 8, 1995.
Bill White,
Deputy Secretary.
[FR Doc. 95-20283 Filed 8-15-95; 8:45 am]
BILLING CODE 6450-01-P
