[Federal Register Volume 59, Number 184 (Friday, September 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23640]
[[Page Unknown]]
[Federal Register: September 23, 1994]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Washoe Project--Notice of Order Confirming and Approving an
Extension of the Nonfirm Energy Rate
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice is given of Rate Order No. WAPA-66 extending until
September 30, 1995, Rate Schedule SNF-3 for the sale of nonfirm energy
generated at the Stampede Powerplant (Stampede) of the Washoe Project
(Washoe).
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FOR FURTHER INFORMATION CONTACT: Mr. James C. Feider, Area Manager,
Western Area Power Administration, Sacramento Area Office, 1825 Bell
Street, Suite 105, Sacramento, CA 95825-1097, (916) 649-4418.
SUPPLEMENTARY INFORMATION: 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 Area Power Administration (Western); (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to the Federal Energy Regulatory Commission
(FERC). Existing Department of Energy procedures for public
participation in power rate adjustments (10 CFR part 903) became
effective on September 18, 1985 (50 FR 37835).
Pursuant to Delegation Order No. 0204-108, FERC confirmed and
approved Rate Schedule SNF-3 for the sale of nonfirm energy generated
at Stampede. In an order issued June 7, 1991, in Docket No. EF90-5161-
000, the rate was approved for the 53-month period April 30, 1990,
through September 30, 1994.
This extension of the existing Washoe nonfirm energy rate until
September 30, 1995, facilitates current measures being taken by Western
in conjunction with the Bureau of Reclamation to service project-use
loads. This extension also allows Western to examine the marketing
options outside of the Sierra Pacific Power Company's control area and
prepare the appropriate rate studies.
The purpose of Rate Order No. WAPA-66 is to extend Rate Schedule
SNF-3 until September 30, 1995, allowing Western the time to complete
the activities listed in the previous paragraph.
Issued in Washington, D.C., September 14, 1994.
Bill White,
Deputy Secretary.
In the matter of: Western Area Power Administration, Rate
Adjustment for Washoe Project. Rate Order No. WAPA-66.
Order Confirming and Approving an Extension of the Washoe Project
Nonfirm Energy Rate
September 14, 1994.
This power rate is established pursuant to section 302(a) of the
Department of Energy (DOE) Organization Act, 42 U.S.C. 7152(a), through
which the power marketing functions of the Secretary of the Interior
and the Bureau of Reclamation (Reclamation) under the Reclamation Act
of 1902, (32 Stat. 388 et seq), as amended and supplemented by
subsequent enactments, particularly section 9(c) of the Reclamation
Project Act of 1939, 43 U.S.C. 485h(c), and other acts specifically
applicable to the project system involved, were transferred to and
vested in the Secretary of Energy.
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 the Western Area Power
Administration (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 the
Federal Energy Regulatory Commission (FERC). Existing DOE procedures
for public participation in power rate adjustments (10 CFR part 903)
became effective on September 18, 1985 (50 FR 37835).
This rate extension is issued pursuant to the Delegation Order and
the rate extension procedures in 10 CFR part 903.
Background
Pursuant to Delegation Order No. 0204-108, FERC, in the order
issued June 7, 1991, in Docket No. EF90-5161-000, confirmed and
approved Rate Schedule SNF-3 for the sale of nonfirm energy generated
at the Stampede Powerplant (Stampede) of the Washoe Project, as
administered by Western's Sacramento Area Office (SAO). The rate was
approved for the period from April 30, 1990, through September 30,
1994.
Discussion
As part of the Washoe Project, Reclamation constructed the 3.65-
megawatt Stampede Powerplant which is located in the Sierra Pacific
Power Company (SPPC) service and load control area. The U.S. Fish and
Wildlife Service (USFWS) loads at the Lahontan Fish Hatchery and the
Marble Bluff Fish Facility were designated project use loads, and thus
entitled the USFWS to the energy generated at Stampede on a
nonreimbursable, first-priority basis. Since Stampede began operation
in 1988, Western has been unable to service project use loads or to
recover all related annual and capital costs of the powerplant due to
limited market and transmission access and below-average
hydrogeneration. As a result, Western has been exploring several
marketing and transmission options to service project use and to
improve the repayment status of the Washoe Project.
The June 7, 1991, Rate Order (FERC Docket No. EF90-5161-000)
established an annual bidding process for the sale of Stampede energy.
The energy would be sold to the entity offering the highest price for
the energy, provided that the bid price is between the floor and
ceiling rates established by the SAO. The floor rate is based on the
greater of either (a) the rate necessary to recover the projected
annual operation and maintenance expenses for Stampede plus 2 mills per
kilowatthour (mills/kWh) or (b) 85 percent of the purchaser's projected
average marginal energy costs. The ceiling rate is the conventional
repayment rate as determined by the power repayment study, which is
currently 72.3 mills/kWh.
The SAO first accepted bids in 1991 and continued the bidding
process each year as required by the Rate Order (FERC Docket No. EF90-
5161-000). From June 1991 to June 1994, SAO did not receive any bids
that fully comported with the bid requirements. SPPC submitted bids
which were below the calculated floor rate. SPPC stated that the
offered rates represented 85 percent of SPPC's average marginal costs.
Since Stampede is directly interconnected to SPPC's system, there was
no need for additional transmission agreements. Therefore, the Stampede
energy has been sold to SPPC on a recurring short-term basis from July
1, 1991, to the present time.
On April 1, 1994, Western executed SAO Contract Number 94-SAO-00010
with the SPPC, which provides Western the mechanism necessary to
provide service to USFWS at the Lahontan National Fish Hatchery and
Marble Bluff Fish Facility. The contract also provides Western the
option to market all energy, in excess of that energy which is required
to service USFWS loads, outside of the SPPC's control area.
Since the mechanism is in place to serve project loads and transmit
Stampede power outside the SPPC service area, Western needs additional
time to evaluate the marketing options and effects of the contractual
provisions on repayment of the Washoe Project. The extension of the
current nonfirm energy rate is required to allow Western the time to
complete its evaluation, develop a marketing program, prepare the
appropriate rate studies, and conclude the public process.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm and approve for a
period effective October 1, 1994, until September 30, 1995, the
existing Rate Schedule SNF-3 for the sale of nonfirm energy generated
at the Stampede Powerplant of the Washoe Project.
Issued in Washington, D.C., September 14, 1994.
Bill White,
Deputy Secretary.
[FR Doc. 94-23640 Filed 9-22-94; 8:45 am]
BILLING CODE 6450-01-P
