Federal Register / Vol. 62, No. 188 / Monday, September 29, 1997 / Notices 50921

DEPARTMENT OF ENERGY

Southwestern Power Administration

Integrated System Power Rates

AGENCY: Southwestern Power

Administration, DOE.

ACTION: Notice of extension.

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(b), has approved Rate Order No.

SWPA–35 which extends the existing

power rates for the Integrated System.

This is an interim rate action effective

October 1, 1997, and extending for a

period of six months through March 31,

1998.

FOR FURTHER INFORMATION CONTACT:

Forrest E. Reeves, Assistant

Administrator, Office of Corporate

Operations, Southwestern Power

Administration, Department of Energy,

P.O. Box 1619, Tulsa, Oklahoma 74101–

1619, (918) 595–6696.

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 by the Deputy Secretary of Energy

on August 24, 1994, August 8, 1995, and

September 23, 1996. The rates expire on

September 30, 1996.

The FY 1997 Integrated System Power

Repayment Study indicates the need for

a 3.3 percent ($3,212,635) annual

revenue increase. Based on the revenue

requirement needed to meet repayment

criteria, Southwestern Power

Administration (Southwestern) has

announced in the Federal Register, on

August 22, 1997, its intention to file

new Integrated System rates and

provided for a 90-day public comment

period pursuant to requirements set

forth in 10 CFR 903. In order to provide

time in which to complete the public

participation process and implement the

new rates by January 1, 1998,

Southwestern is seeking a six-month

extension of current rates. This

extension will provide a three-month

contingency period if unforeseen

difficulties should arise that would

create a delay in the January 1, 1998,

implementation date, and avoiding the

need for an additional extension.

The Deputy Secretary is authorized to

implement such temporary extension

based on authorities provided in 10 CFR

903.22(h) and 903.23(b) and

Amendment No. 3 to Delegation Order

No. 0204–108.

Following review of Southwestern’s

proposal within the Department of

Energy, I approved, Rate Order No.

SWPA–35, which extends the existing

Integrated System rates for six months

beginning October 1, 1997.

Dated: September 19, 1997.

Elizabeth A. Moler,

Deputy Secretary.

Order Approving Extension of Power

Rates on an Interim Basis

(October 1, 1997)

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 re-delegated 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 a temporary rate extension. It

is made pursuant to the authorities as

implemented in 10 CFR 903.22(h) and

903.23(b).

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,

comprised 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 for one

year periods on an interim basis by the

Deputy Secretary of Energy on August

28, 1994, on August 8, 1995, and again

on September 23, 1996. These rates are

now scheduled to expire September 30,

1997.

Pursuant to implementing authority

in 10 CFR 903.22(h) and 903.23(b), the

Deputy Secretary of Energy may extend

a FERC-approved rate on a temporary

basis without advance notice or

comment pending further action.

Southwestern is in the process of its rate

development and public participation

process. The FY 1997 rate development

process has been expanded to

incorporate issues impacting

Southwestern with respect to the

Federal Energy Regulatory
50922 Federal Register / Vol. 62, No. 188 / Monday, September 29, 1997 / Notices

Commission’s Order No. 888 on open

transmission access. Consequently, an

extension of the current rates is needed

to provide sufficient time in which to

comply with the public participation

process required by 10 CFR 903.

Southwestern is developing open access

tariffs consistent with Order No. 888.

Southwestern has announced in the

Federal Register on August 22, 1997, a

90-day public comment period on the

FY 1997 proposed rates with a planned

implementation on January 1, 1998.

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 Southwestern’s plus-orminus two percent Rate Adjustment

Threshold, these rate adjustments were

deferred in the best interest of the

government and provided for the

subsequent year’s PRS to determine the

appropriate level of revenues needed for

the next rate period.

The FY 1997 PRS indicates the need

for an annual revenue increase of 3.3

percent ($3,212,635). A rate adjustment

of this magnitude, together with the

need to revise rate schedules to address

the intent of FERC’s Order No. 888,

requires a formal rate filing. With

existing rates expiring on September 30,

1997, Southwestern proposes to extend

the existing rates for a six-month period

ending September 30, 1998, on a

temporary basis under the

implementation authorities noted in 10

CFR 903.22(h) and 903.23(b) to provide

sufficient time to complete the FY 1997

proposed rate development.

Southwestern continues to make

significant progress toward repayment

of the Federal investment in the

Integrated System. Through FY 1996,

cumulative amortization for the

Integrated System was over $369

million, which represents

approximately 37 percent of the $1

billion cumulative Federal investment

for the Integrated System. The

repayment status has increased over 100

percent since the existing rates were

placed in effect.

Inquiries regarding this rate extension

may be addressed to Forrest E. Reeves,

Assistant Administrator, Office of

Corporate Operations, Southwestern

Power Administration, One West Third

Street, Tulsa, Oklahoma 74101–1619.

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 six

months, effective October 1, 1997, the

current FERC-approved Integrated

System Rates for the sale of power and

energy.

Dated: September 19, 1997.

Elizabeth A. Moler,

Deputy Secretary.

[FR Doc. 97–25747 Filed 9–26–97; 8:45 am]

BILLING CODE 6450–01–P

DEPARTMENT OF ENERGY

Western Area Power Administration

Boulder Canyon Project—Notice of

Firm Power Service Base Charge

AGENCY: Western Area Power

Administration, DOE.

ACTION: Notice of base charge.

SUMMARY: Notice is given of the

confirmation and approval by the

Deputy Secretary of the Department of

Energy (DOE) of the Base Charge and its

components for the Boulder Canyon

Project (BCP) firm power service. The

Fiscal Year (FY) 1998 Base Charge and

its components for BCP firm power are

based on an Annual Revenue

Requirement of $43,479,183. The Base

Charge consists of an energy dollar

amount of $22,527,359 and a capacity

dollar amount of $20,951,824. This Base

Charge and its components are used for

calculating the monthly charges and

forecast rates pursuant to Rate Schedule

BCP–F5 as approved by the Federal

Energy Regulatory Commission (FERC)

on April 19, 1996 (Rate Order No.

WAPA–70).

DATES: The Base Charge and its

components, used in calculating the

monthly charges and forecast rates

pursuant to Rate Schedule BCP–F5, will

be effective on the first day of the first

full billing period beginning on or after

October 1, 1997, and will be in effect

through FY 1998.

FOR FURTHER INFORMATION CONTACT:

Mr. J. Tyler Carlson, Regional Manager,

Desert Southwest Customer Service

Region, Western Area Power

Administration, P.O. Box 6457,

Phoenix, AZ 85005–6457, (602) 352–

2453.

Mr. Joel K. Bladow, Assistant

Administrator for Power Marketing

Liaison, Western Area Power

Administration, Room 8G–027,

Forrestal Building, 1000

Independence Avenue, SW.,

Washington, DC 20585–0001, (202)

586–5581.

SUPPLEMENTARY INFORMATION: The Base

Charge and its components were

calculated in accordance with the

methodology approved under Rate

Order WAPA–70. The Procedures for

Public Participation in Power and

Transmission Rate Adjustments and

Extensions, 10 CFR Part 903, have been

followed by Western Area Power

Administration (Western) in

determining the Base Charge and its

components. The following summarizes

the steps taken by Western to ensure

involvement of all interested parties in

the determination of the Base Charge

and its components:

1. On April 18, 1997, a letter was

mailed from Western’s Desert Southwest

Customer Service Regional Office to all

BCP customers and other interested

parties. The letter provided a copy of

the BCP Proposed Rate Adjustment data,

dated April 18, 1997.

2. Discussion of the proposed Base

Charge and its components was initiated

at an informal BCP Contractor meeting

held on May 6, 1997, in Phoenix,

Arizona. At this informal meeting,

representatives from Western and the

Bureau of Reclamation (Reclamation)

explained the basis for estimates used in

the calculation of the Base Charge and

its components. A question and answer

session was convened for those persons

attending.

3. A Federal Register Notice (FRN)

was published on May 7, 1997 (62 FR

24913), officially announcing the

proposed Base Charge adjustment

process, initiating the public

consultation and comment period,

announcing the public information and

public comment forums, and presenting

procedures for public participation.

4. At the public information forum

held on May 15, 1997, in Phoenix,

Arizona, Western and Reclamation

representatives explained the proposed

Base Charge and its components for Rate

Year 1998 in greater detail. A question

and answer session was convened for

those persons attending. A response to

a data request from the public

information forum was mailed to the

customers on June 2, 1997.

5. A public comment forum was held

on June 12, 1997, in Phoenix, Arizona,

to give the public an opportunity to

comment for the record. Three persons

representing customers and customer

groups made oral comments. A response

to the comments and data requests from

the public comment forum was mailed

to the customers on July 18, 1997.

6. Three comment letters were

received during the 90-day consultation