[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Notices]
[Pages 44670-44672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22334]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of public review and comment.
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SUMMARY: The Administrator, Southwestern Power Administration
(Southwestern), has prepared Current and Revised 1997 Power Repayment
Studies which show the need for an increase in annual revenues to meet
cost recovery criteria. Such increased revenues are needed primarily to
cover increased investments and replacements in hydroelectric
generating and high-voltage transmission facilities. The Administrator
has developed proposed Integrated System Rate Schedules, which are
supported by a rate design study, to recover the required revenues and
to unbundle transmission rates for open access in accordance with the
Federal Energy Regulatory Commission (FERC) Orders 888 and 889.
Beginning January 1, 1998, the proposed rates would increase annual
system revenues approximately 3.3 percent from $96,192,500 to
$99,405,135.
DATES: The consultation and comment period will begin on August 22,
1997 and will end November 20, 1997.
1. Public Information Forum--September 4, 1997, 8:30 a.m.,Tulsa,
OK.
2. Public Comment Forum--October 9, 1997, 8:30 a.m.,Tulsa, OK.
[[Page 44671]]
ADDRESSES: The forums will be held in Southwestern's offices, Room
1402, Williams Center Tower I, One West Third Street, Tulsa, Oklahoma
74103. Ten copies of the 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. Forrest E. Reeves, Assistant
Administrator, Office of Corporate Operations, Southwestern Power
Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa,
Oklahoma 74101, (918) 595-6696.
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 Interior
to the Department of Energy, 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 multi-purpose reservoir projects
with hydroelectric 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. The costs
associated with the hydropower facilities of 22 of the 24 projects are
repaid via revenues received under the Integrated System rates, as are
Southwestern's transmission facilities which consist of 2,220
kilometers (1,380 miles) of high-voltage transmission line, 24
substations, and 46 microwave and VHF radio sites. Costs associated
with the Sam Rayburn and Robert D. Willis Dams, two projects that are
isolated hydraulically, electrically, and financially from the
Integrated System are repaid by separate rate schedules and are not
addressed in this notice.
Following Department of Energy guidelines, the Administrator,
Southwestern, prepared a Current Power Repayment study using existing
system rates. The Study indicates that Southwestern's legal requirement
to repay the investment in power generating and transmission facilities
for power and energy marketed by Southwestern will not be met without
an increase in revenues. The need for increased revenues is primarily
due to the increased costs for project investments, together with
increased costs for transmission and generation replacements. The
Revised Power Repayment Study shows that additional annual revenues of
$3,212,635, (a 3.3 percent increase), beginning January 1, 1998, are
needed to satisfy repayment criteria.
A Rate Design Study has also been completed which allocates the
revenue requirement to the various system rate schedules for recovery,
and provides for transmission service rates in conformance with FERC
Order No. 888 (Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Public Utilities). The proposed
new rates would increase estimated annual revenues from $96,192,500 to
$99,405,195 and would satisfy the present financial criteria for
repayment of the project and transmission system investments within the
required number of years. As indicated in the Integrated System Rate
Design Study, this revenue would be developed primarily through
increases in the charges for transmission and ancillary services for
deliveries of both Federal and non-Federal power and associated energy
from the transmission system of Southwestern. There are also increased
charges for transformation services for deliveries at voltages of 69 kV
(kilovolt) or less. The generation component of the power rate has
declined, as has the energy rate.
A second component of the Integrated System rates for power and
energy, the purchased power adder, produces revenues which are
segregated to cover the cost of power purchased to meet required
contractual obligations. The purchased power adder is established to
reflect what is expected to be needed by Southwestern to meet purchased
power needs on an average annual basis. It has been increased slightly
from the existing rate to reflect the projected power costs based on
present market rates. The Administrator's authority to adjust the
purchased power adder annually at his discretion, plus or minus $0.0005
per kilowatthour (kWh), is increased by six tenths of one mill per kWh
to $0.0011 per kWh in the proposed rate schedules.
Below is a general comparison of the existing and proposed system
rates:
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Existing rates Proposed rates
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Rate Schedule P-90A (System Rate Schedule P-98 (System
Peaking) Peaking)
Capacity: Grid or 138-161kV.................. $2.52/kW/Mo..................... $1.87/kW/Mo + $0.66/kW/Mo
(transmission) + $0.09
(ancillary services) + up to
$0.06/kW/Mo (ancillary
services) for delivery in
control area:
Transformation Service Transformation Service
69 kV........................................ +$0.12/kW/mo.................... +$0.27/kW/mo.
Delivery below 69 kV......................... +$0.55/kW/mo.................... No separate charge.
Note: transformation charge Note: transformation charge
applied on capacity reservation. applied on usage, not
reservation.
Energy....................................... $0.0052/kWh of Peaking Energy $0.0048/kWh of Peaking Energy
and Supplemental Peaking Energy and Supplemental Peaking
+ a Purchased Power Adder of Energy + a Purchased Power
$0.0009/kWh of Peaking Energy, Adder of $0.0011 of Peaking
decreasing to $0.00/kWh after 9/ Energy ( 0.0011
30/93; (0.0005 annually at Administrator's
annually at Administrator's discretion).
discretion) with a customer-
specific purchase power credit
through September 30, 1993.
Rate Schedules P-90B & F90B..... No longer applicable.
Rate Schedule TDC-90 Rate Schedule TDC-98
(Transmission) (Transmission)
Capacity (Firm Reservation w/Energy) Grid or $0.52/kW/mo..................... $0.66/kW/Mo. $0.17/kW/week,
138-161 kV. No firm service by week or day $0.03/kW/day.
offered. +Required Ancillary Services:
$0.090/kW/mo, or $0.022/kW/
week, or $0.004/kW/day.
+Non-Req Ancillary Service: up
to :$0.059/kW/mo, or $0.015/kW/
week, or $0.003/kW/day, or for
delivery in control area.
[[Page 44672]]
Transformation Service Transformation Service
69 kV........................................ +$0.12/kW/Mo.................... +$0.27/kW/Mo
Delivery below 69 kV......................... +$0.55/kW/Mo.................... No separate charge.
Note: transformation charge Note: transformation charge
applied on capacity reservation. applied on usage, not
reservation. Weekly and daily
rates not applied.
Energy (Firm w/o Capacity)................... $0.0012/kWh..................... No longer offered.
Capacity (Non-firm with energy): Grid or 138- The lesser of:.................. No separate capacity charge.
161 kV. $0.0172/kW/day, or............ $0.0015/kWh delivered.
$0.0014/kWh...................
Transformation Service Transformation Service
69 kV........................................ The lesser of:..................
+$0.0040/kW/day................. No separate capacity charge.
+$0.0004/kWh.................... Note: transformation charge
applied on usage, not
reservation. Weekly, daily,
and hourly rates not applied.
Transformation Service
Delivery below 69 kV......................... The lesser of:..................
+$0.0183/kW/day............... No separate capacity charge.
+$0.0015/kWh.................. Note: transformation charge
applied on usage, not
reservation. Weekly, daily,
and hourly rates not applied.
Rate Schedule IC-90............. Service no longer offered.
Rate Schedule EE-90 (Excess
Energy)
Energy....................................... $0.0052/kWh..................... $0.0048/kWh + $0.0018/kWh
(transmission) + $0.00025/kWh
(ancillary service) + for
delivery in control area:
$0.00017/kWh (ancillary
service).
----------------------------------------------------------------------------------------------------------------
Opportunity is presented for Southwestern customers and other
interested parties to receive copies of the Integrated System Studies
and proposed rate schedules. If you desire a copy of the Integrated
System Power Repayment Studies and Rate Design Study Data Package with
proposed Rate Schedules, submit your request to Mr. Forrest E. Reeves,
Assistant Administrator, Office of Corporate Operations, Southwestern
Power Administration, P.O. Box 1619, Tulsa, OK 74101-1619 (918) 595-
6696.
A Public Information Forum is being held to explain to customers
and the public 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 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 letter or facsimile transmission (918-595-6656)
by August 31, 1997, their intent to appear at such Forum. If no one so
indicates their intent to attend, no such Forum will be held.
A Public Comment Forum will be held at which interested persons may
submit written comments or make oral presentations of their views and
comments. The Forum will 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 the Public Comment Forum
should indicate in writing by letter or facsimile transmission (918-
595-6656) by September 30, 1997, their intent to appear at such Forum.
If no one so indicates their intent to attend, no such Forum will be
held. Persons interested in speaking at the Forum should submit a
request to the Administrator, Southwestern, at least three (3) days
prior to the Forum so that a list of speakers can be developed. 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 Integrated System Rates are due on or
before November 20, 1997. Ten copies of the written comment should be
submitted to the Administrator, Southwestern, at the above-mentioned
address for Southwestern's offices.
Following review of the oral and written comments and the
information gathered in the course of the proceedings, the
Administrator will submit the amended Integrated System Rate Proposal,
Power Repayment Studies, and Rate Design Study in support of the
proposed rates to the Deputy Secretary of Energy 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 increase before making a final decision.
Issued in Tulsa, Oklahoma, this 8th day of August, 1997.
Forrest E. Reeves,
Acting Administrator.
[FR Doc. 97-22334 Filed 8-21-97; 8:45 am]
BILLING CODE 6450-01-P
