[Federal Register Volume 62, Number 185 (Wednesday, September 24, 1997)]
[Notices]
[Pages 49976-49977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25334]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Notice of Robert D. Willis Proposed Power Rate Change

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Public Review and Comment Period.

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SUMMARY: The Administrator, Southwestern, has prepared Current and 
Revised 1997 Power Repayment Studies for the Robert D. Willis (Willis) 
project which show the need for an increase in annual revenues required 
to meet cost recovery criteria. The increase in the revenues required 
was the result of an increase in estimated Operations and Maintenance 
costs by Corps of Engineers and the increased amount of large 
maintenance items estimated for Willis. The Administrator has also 
developed a proposed rate schedule for the isolated Willis project to 
recover the required revenues. The proposed rate for the Willis project 
would increase annual revenues approximately 13.5 percent from $266,928 
to $302,928 beginning January 1, 1998.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register and will end November 10, 1997.

1. Public Information Forum--October 2, 1997, 9:30 a.m., Central Time 
in Tulsa, OK
2. Public Comment Forum--October 29, 1997, 1:30 p.m., Central Time in 
Tulsa, OK

    Southwestern is only conducting a 45 day public notice and comment 
period (10 CFR 903.14(d)) since the Willis project is considered a 
minor adjustment. In addition, this project has a single hydroelectric 
power customer and that customer has been notified of the proposed rate 
increase. It is anticipated that any comments from the customer or 
other interested parties will be developed well within the 45 day 
period provided.

ADDRESSES: The Forums will be held in Southwestern's offices, Suite 
1600, Williams Center Tower I, One West Third Street, Tulsa, Oklahoma 
74103. Ten copies of the written comments should be submitted to the 
Assistant Administrator, Southwestern Power Administration, U.S. 
Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101-1619.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power

[[Page 49977]]

Administration, U.S. Department of Energy, PO 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, through the Department of Energy 
Organization Act, Pub. L. 95-91, dated August 4, 1977, and Southwestern 
Power Administration's power marketing activities were transferred from 
the Department of the Interior to the Department of Energy, effective 
October 1, 1977.
    Southwestern markets power from 24 multiple-purpose reservoir 
projects with 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. Of the total, 22 
projects comprise an Integrated System and are interconnected through 
Southwestern's transmission system and exchange agreements with other 
utilities. The Sam Rayburn Dam project, located in eastern Texas, is 
not interconnected with Southwestern's Integrated System hydraulically, 
electrically, or financially. Instead, the power produced by the Sam 
Rayburn Dam project is marketed by Southwestern as an isolated project 
under a contract through which the customer purchases the entire power 
output of the project at the dam. The Willis project, located on the 
Neches River downstream from the Sam Rayburn Dam, consists of two 4,000 
kilowatt hydroelectric generating units. It, like the Sam Rayburn Dam 
project, is marketed as an isolated project under a contract through 
which the customer, Sam Rayburn Municipal Power Agency (SRMPA), 
receives the entire output of the project. The SRMPA contract is for a 
period of 50 years as a result of SRMPA's funding the construction of 
the hydroelectric facilities at the project. A separate power repayment 
study is prepared for each project which has a special rate based on 
its isolated project determination.
    Following Department of Energy Order Number RA 6120.2, the 
Administrator, Southwestern, prepared a current power repayment study 
for the Robert D. Willis project using the existing annual rate of 
$266,928. The study indicated that maintaining the current rate will 
create a revenue deficit for the project. This is primarily a result of 
the Corps of Engineers increase of estimated Operations and Maintenance 
cost of the Willis Project allocated from the Sam Rayburn Project. The 
Revised Power Repayment Study for the isolated Willis project shows 
that a increase of $36,000 (a 13.5 percent increase) annually will 
satisfy repayment criteria. This increase would change annual revenues 
produced by the Willis Project from $266,928 to $302,928 and satisfy 
the present financial criteria for repayment of the project.
    Opportunity is presented for customers and interested parties to 
receive copies of the studies and proposed rate schedule for the Willis 
project. If you desire a copy of the Repayment Study Data Package for 
the Willis project, submit your request to: Mr. Forrest E. Reeves, 
Assistant Administrator, Office of Corporate Operations, PO Box 1619, 
Tulsa, OK 74101, (918) 595-6696.
    A Public Information Forum is scheduled to be held October 2, 1997. 
The Forum is 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 the 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 4 p.m., Central Time, Tuesday, September 30, 
1997, 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 is scheduled to be held October 29, 1997. 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 speakers. The chairman may allow 
others to speak if time permits. Persons interested in attending or 
speaking at the Public Comment Forum should indicate in writing by 4 
p.m., Central Time, Friday, October 24, 1997, their intent to appear at 
such Forum. Accordingly, if no one so indicates their intent to attend, 
no such Forum will be held.
    A transcript of each Forum will be made. Copies of the transcripts 
may be obtained, for a fee, directly from the transcribing service. 
Copies of all documents introduced will be available from Southwestern 
upon request, also for a fee. Written comments on the proposed rates 
for the project are due on or before 45 days from publication. Written 
comments should be submitted to the Assistant Administrator, 
Southwestern Power Administration, U.S. Department of Energy, PO Box 
1619, Tulsa, Oklahoma 74101.
    Following review of the oral and written comments, the 
Administrator will submit the rate proposals and the Power Repayment 
Studies for the Willis project, in support of the proposed rates, to 
the Deputy Secretary of Energy for confirmation and approval on an 
interim basis and subsequently 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 15th day of September 1997.
Michael A. Deihl,
Administrator.
[FR Doc. 97-25334 Filed 9-23-97; 8:45 am]
BILLING CODE 6450-01-P