60932 Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Notices

respond to any facts or contentions

made in a prohibited off-the-record

communication, and may request that

the Commission place the prohibited

communication and responses thereto

in the decisional record. The

Commission will grant such requests

only when it determines that fairness so

requires. Any person identified below as

having made a prohibited off-the-record

communication should serve the

document on all parties listed on the

official service list for the applicable

proceeding in accordance with Rule

2010, 18 CFR 385.2010.

Exempt off-the-record

communications will be included in the

decisional record of the proceeding,

unless the communication was with a

cooperating agency as described by 40

CFR 1501.6, made under 18 CFR

385.2201(e)(1)(v).

The following is a list of exempt and

prohibited off-the-record

communications received in the Office

of the Secretary within the preceding 14

days. The documents may be viewed on

the Internet at http:/www.ferc.fed.us/

online/rims.htm (call 202–208–2222 for

assistance).

Project No. Date Name

Exempt:

1. CP00–232–000 .................................................................................................................... 9–15–00 Warren Geisler, M.D.

2. CP00–65–000 ...................................................................................................................... 9–25–00 Clifford G. Day.

3. Project No. 2146–081 .......................................................................................................... 9–25–00 Aubry Q. Cohon.

4. Project No. 1864–005 .......................................................................................................... 9–18–00 Honorable Don Koivisto.

5. Project No. 1864–005 .......................................................................................................... 9–6–00 Richard G. Gerrits.

6. Project No. 1864 .................................................................................................................. 7–28–00 Randy Kemp.

7. Project No. 1864 .................................................................................................................. 9–7–00 Gerald and Hetty Gray.

8. Project No. 1864 .................................................................................................................. 9–2–00 Richard J. Matrello.

9. Project No. 10875–001 ........................................................................................................ 9–27–00 Stephen L. Saunders.

10. Project No. 2146–081 .......................................................................................................... 9–26–00 Steve Means.

Randy B. Kelley,

Robert W. Echols, Jr.

Dawson Partee.

Douglas M. Weems.

Robert Avery.

Bill C. Stewart.

11. Project No. 2146–081 .......................................................................................................... 9–26–00 Donna E. Graham.

12. Project No. 2146–081 .......................................................................................................... 9–14–00 Jerry and Iralene Dowdy.

Prohibited:

1. Project No. 9974–043 .......................................................................................................... 9–22–00 Kenneth J. Robillard.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc. 00–26284 Filed 10–12–00; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Western Area Power Administration

Boulder Canyon Project—Rate Order

No. WAPA–94

AGENCY: Western Area Power

Administration, DOE.

ACTION: Notice of rate order.

SUMMARY: This action is to approve the

existing Boulder Canyon Project (BCP)

electric service ratesetting formula, Rate

Order No. WAPA–70, through

September 30, 2005, and to approve the

Fiscal Year (FY) 2001 Base Charge and

Rates. The existing electric service

ratesetting formula and base charge and

rates will expire September 30, 2000.

This notice for approval of the

ratesetting formula and the FY 2001

Base Charge and Rates are issued under

10 CFR part 903.

FOR FURTHER INFORMATION CONTACT: Mr.

Maher Nasir, Rates Team Lead, Desert

Southwest Customer Service Region,

Western Area Power Administration,

P.O. Box 6457, Phoenix, AZ 85005–

6457, (602) 352–2768, or by e-mail:

nasir@wapa.gov.

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 the

Western Area Power Administration

(Western); and (2) 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).

In Delegation Order No. 0204–172,

effective November 24, 1999, the

Secretary delegated the authority to the

confirm, approve, and place such rates

into effect on an interim basis to the

Deputy Secretary. Existing Department

of Energy (DOE) procedures for public

participation in electric service rate

adjustments are located at 10 CFR part

903, effective September 18, 1985 (50

FR 37835). DOE procedures have been

followed by Western in developing this

provisional electric service ratesetting

formula.

The project began with 1928

legislation approving construction of the

BCP. The 1928 legislation provided for

a dam to be built in the Black Canyon

located on the Colorado River adjacent

to the Arizona/Nevada border.

Commercial power generation began in

1936 with yearly average generation of

4.5 billion kilowatthours (kWh). Its

installed capacity is 2,074 megawatts

(MW).

BCP power is marketed in three states;

Arizona, California, and Nevada under

the Hoover Power Plant Act of 1984 and

following the marketing plan approved

and published in the Federal Register

on December 28, 1984. The power is

marketed as long-term contingent

capacity and firm energy. This capacity

and firm energy are available as long as

sufficient water in the reservoir allows

Western to meet its delivery obligations.

If sufficient water to support

Contractors’ capacity entitlements is not

available, each Contractor’s capacity

entitlement is temporarily reduced.

Contractors are entitled to receive 4.5

billion kWh of firm energy each year. If

generation at Hoover Powerplant is less

than that, Western can purchase energy

to make up the shortfall at the request

of individual Contractors on a passthrough cost basis.

The Boulder Canyon Project

Implementation Agreement Contract No.

95–PAO–10616 requires Western, prior

to October 1 of each Rate Year, to

determine the next FY annual base

Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Notices 60933

charge and rates. The Base Charge and

Rates for the first rate year and each fifth

FY thereafter, shall become effective

provisionally upon approval by the

Deputy Secretary of Energy subject to

final approval by the FERC. For all other

FYs, the rate shall become effective

upon approval by the Deputy Secretary

of Energy.

Western will continue to provide the

Contractors an annual base charge and

rates by October 1 of each year using the

same ratesetting formula. The base

charge and rates are reviewed annually

and adjusted upward or downward to

assure sufficient revenues to achieve

payment of all costs and financial

obligations associated with the project.

Each FY, Western prepares a power

repayment study that includes estimates

of annual revenues and expenses for the

BCP including interest and capitalized

costs.

Western’s BCP electric service

ratesetting formula was submitted to

FERC for confirmation and approval on

October 31, 1995. On April 19, 1996, in

Docket No. EF96–5091–000 at 75 FERC

¶ 62,050, FERC issued an order

confirming, approving, and placing into

effect on a final basis the electric service

ratesetting formula for BCP. The

ratesetting formula set forth in Rate

Order No. WAPA–70 was approved for

a period beginning November 1, 1995,

and ending September 30, 2000.

Western proposes to extend the

existing ratesetting formula, and

approve the proposed FY 2001 Base

Charge of $47,788,574, and Rates of

$0.99/kWmonth for capacity and 5.04

mills/kWh for energy, which ensures

sufficient revenues to pay for the BCP

project expenses, interest, and capital

requirements through September 30,

2001. Increased annual expenses have

contributed to the proposed annual rate

adjustment.

In accordance with 10 CFR part 903,

Western held a consultation and

comment period. The notice of the

proposed ratesetting formula and for the

proposed FY 2001 Base Charge and

Rates of the electric service was

published in the Federal Register on

March 10, 2000.

Following review of Western’s

proposal within the Department of

Energy, I approved Rate Order No.

WAPA–94, on an interim basis, for the

Boulder Canyon Project electric service

Rate Schedule BCP–F6 through

September 30, 2005, and the FY 2001

Base Charge and Rates through

September 30, 2001.

Dated: September 18, 2000.

T.J. Glauthier,

Deputy Secretary.

Order Approving the Boulder Canyon

Project Electric Service Ratesetting

Formula and the FY 2001 Base Charge

and Rates

This ratesetting formula was

established under section 302(a) of the

Department of Energy Organization Act

(42 U.S.C. 7152(a)), through which the

power marketing functions of the

Department of the Interior and the

Bureau of Reclamation under the

Reclamation Act of 1902 (ch. 1093, 32

stat. 388), as amended and

supplemented by subsequent

enactments, particularly section 9(c) of

the Reclamation Project Act of 1939 (43

U.S.C. 485h(c)), were transferred to and

vested in the Secretary of Energy

(Secretary).

By Amendment No. 3 to Delegation

Order No. 0204–108, published

November 10, 1993 (58 FR 59716), the

Secretary 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); and (2) 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).

In Delegation Order No. 0204–172,

effective November 24, 1999, the

Secretary delegated the authority to

confirm, approve, and place such rates

into effect on an interim basis to the

Deputy Secretary. Existing Department

of Energy (DOE) procedures for public

participation in electric service rate

adjustments are located at 10 CFR part

903, effective September 18, 1985 (50

FR 37835). Procedures for approving

Power Marketing Administration rates

by FERC are found in 18 CFR part 300.

Acronyms and Definitions

As used in this rate order, the

following acronyms and definitions

apply:

BCP: Boulder Canyon Project.

Base Charge: The total charge paid by a

Contractor for capacity and energy

based on the annual revenue

requirement, under section 13 of

the BCPIA effective February 17,

1995. The base charge shall be

composed of a capacity component

and an energy component.

BCPIA: The Boulder Canyon Project

Implementation Agreement which

became effective February 17, 1995.

The agreement resolved eleven raterelated issues: (1) Replacements; (2)

Visitor Facilities; (3) Amendment to

Regulations; (4) Multi-Project

Benefits and Costs; (5) Engineering

& Operating Committee (E&OC) and

Coordinating Committee; (6) Billing

and Payment; (7) Operating Amount

and Working Capital; (8) Audits; (9)

Principal Payments; (10) Annual

Rate Adjustments; and (11)

Uprating Credits.

Calculated Energy Rate: The calculated

amount equal to 50 percent of the

annual revenue requirement for

each FY divided by the energy

deemed delivered in such FY.

Capacity Dollar: The amount of revenue

to be billed for BCP capacity sales

for each FY. Such amount shall be

50 percent of the annual revenue

requirement, adjusted for the

annual capacity credit in

accordance with section 13.9 of the

BCPIA.

Contractors: An entity with a contract

and receiving service from

Western’s Desert Southwest

Customer Service Region. The BCP

Contractors are: City of Anaheim,

Arizona Power Authority, City of

Azusa, City of Banning, City of

Boulder City, City of Burbank,

Colorado River Commission, City of

Colton, City of Glendale, City of Los

Angeles Department of Water &

Power, Metropolitan Water District

of Southern California, City of

Pasadena, City of Riverside,

Southern California Edison, and

City of Vernon.

DOE: Department of Energy.

DOE Order RA 6120.2: An order

identifying the financial reporting

and rate-making procedures for the

power marketing administrations.

Energy Dollar: The amount of revenue to

be billed for BCP energy sales for

each FY. Such amount shall be 50

percent of the annual revenue

requirement, adjusted for the

annual capacity credit in

accordance with section 13.9 of the

BCPIA.

FERC: Federal Energy Regulatory

Commission.

FY: Fiscal Year, October 1 through

September 30.

Forecast Capacity Rate: Equals the

Capacity Dollar divided by

1,951,000 kWs.

Forecast Energy Rate: Equals the Energy

Dollar divided by the lesser of the

energy forecasted in the total master

schedule or 4,501.001 million

kWhs.

Hoover Dam: The dam on the Colorado

River which forms Lake Mead.

kW: Kilowatt.

kWh: Kilowatthour.

mills/kWh: Mills per kilowatthour.

60934 Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Notices

NEPA: National Environmental Policy

Act of 1969.

OM&R: Operation, maintenance, and

replacement.

PRS: Power Repayment Study.

Project Act: The Boulder Canyon Project

Act authorizing the construction of

Boulder Canyon Project dated

December 21, 1928 (43 U.S.C. 617,

et seq.).

Rates: A forecast energy rate and a

forecast capacity rate.

Rate Year: The next FY for which the

annual revenue requirement is

forecast for annual rate

determination purposes in the PRS.

Reclamation: United States Department

of the Interior, Bureau of

Reclamation.

Western: United States Department of

Energy, Western Area Power

Administration.

Effective Date

This Rate Order No. WAPA–94

approves the existing ratesetting

formula and the FY 2001 Base Charge

and Rates which will take effect on

October 1, 2000. The ratesetting formula

will be in effect on an interim basis,

pending FERC’s approval of this or a

substitute ratesetting formula on a final

basis for a 5-year period ending

September 30, 2005, or until

superseded.

Public Notice and Comment

Western held a consultation and

comment period under 10 CFR part 903.

A Federal Register notice was

published March 10, 2000, announcing

Western’s proposal to extend the

existing ratesetting formula, and of the

calculation of the FY 2001 Base Charge

and Rates. The notice also announced a

public information forum on April 13,

2000, and a public comment forum on

May 9, 2000.

On March 30, 2000, Western met with

the Contractors and again notified them

of Western’s intent to extend the

existing ratesetting formula and

presented the proposed calculation of

the FY 2001 Base Charge and Rates.

Western discussed in detail the FY 2001

budget and capital expenditures. This

Order is for approval of the existing

ratesetting formula and the calculation

of the FY 2001 Base Charge and Rates.

Project Description

The BCP was authorized for

construction by the Project Act. The

Project Act provided for a dam to be

built in the Black Canyon located on the

Colorado River adjacent to the ArizonaNevada border. The dam was built for

the express purposes of: (1) Controlling

the flooding in the lower regions of the

Colorado River drainage system, (2)

improving navigation of the Colorado

River and its tributaries, (3) regulating

the Colorado River, while providing

storage and delivery of the stored water

for the reclamation of public lands; and

(4) generating electrical energy as a

means of making the BCP a selfsupporting and financially solvent

undertaking.

Construction of Hoover Dam, formerly

known as Boulder Dam, began in 1930.

Commercial power generation began in

1936 with the first generating unit of the

powerplant going into service in 1937.

The Hoover Powerplant has 19

generating units and an installed

capacity of 2,074 MW.

The Hoover Powerplant Act of 1984

sets forth the amounts of Hoover power

to be sold beginning June 1, 1987, to the

15 Contractors located in the states of

Arizona, California, and Nevada.

Power Repayment Studies

The BCPIA Contract No. 95–PAO–

10616 requires that the amount of each

annual Base Charge and Rates be

reviewed annually prior to October 1

and adjusted upward or downward, and

to take effect in the first billing period

of the Rate Year. Each FY Western

estimates BCP expenses by preparing a

PRS that includes estimates for OM&R

costs for the BCP to determine the

annual revenue requirement for the next

FY. The preparation of each FY’s PRS

includes adjustments from estimated to

actual dollars in the previous year’s

PRS. Any adjustments required,

whether resulting in an increase or

decrease of the annual revenue

requirement, are carried forward and

included in the estimated revenue

requirement used to calculate the next

year’s rate.

Each annual Base Charge pays the

annual amortized portion of the United

States’ investment in the BCP facilities

with interest and associated OM&R

costs. This repayment schedule does not

depend upon the power and energy

made available for sale or the rate of

generation each year.

Certification of Rate

Western’s Administrator has certified

that the BCP electric service ratesetting

formula determining the annual Base

Charge and Rates placed into effect on

an interim basis is consistent with

applicable laws, policies, regulations,

agreements, and departmental orders

and the calculation of the FY 2001 Base

Charge and Rates is the lowest

consistent with sound business

principles.

Discussion

According to Reclamation law,

Western must establish power rates

sufficient to recover operation,

maintenance, and purchase power

expenses, and to repay the Federal

Government’s investment in generation

and transmission facilities. Rates must

also be set to cover interest expenses on

the unpaid balance of facilities’

investments, and replacements and

additions, and certain non-power costs

in excess of the irrigation users’ ability

to pay.

Western prepares an annual PRS that

identifies the estimated annual revenue

requirement for the next FY. In

accordance with the contracts, expenses

for replacements and additions are

included in the annual anticipated

OM&R. The existing ratesetting formula

for the BCP requires that each year the

Contractors pay the total estimated

annual revenue requirement in return

for up to 1,951,000 kWs of capacity and

4,501.001 million kWhs of energy. The

capacity and energy, produced up to the

above limits at the BCP, are allocated to

the Contractors on a percentage basis.

The existing ratesetting formula for the

annual Base Charge and Rates satisfies

the cost-recovery criteria set forth in

DOE Order RA 6120.2.

Statement of Revenue and Related

Expenses

The annual revenue requirement for

the BCP is based upon the PRS

calculations for future requirements,

which will be adjusted when FY actuals

are known. The following tables provide

a summary of the revenues and

expenses for the existing electric service

ratesetting formula and also the

projected revenues and expenses for the

proposed 5-year electric service

ratesetting formula.

Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Notices 60935

BCP REVENUES AND EXPENSES, FY 1996–2000

[$1,000]

Item Actual Projected Difference

Total Revenues ............................................................................................................................ $276,372 $315,522

Sum of Prior Year’s Revenue Adjustment .................................................................................. (4,122) 0

Adjusted Total Revenues ..................................................................................................... 272,250 315,522 ($43,272)

Revenue Distribution:

O&M ...................................................................................................................................... 116,148 131,051 (14,903)

Payments to States .............................................................................................................. 3,000 3,000 0

Other ..................................................................................................................................... 20,604 23,201 (2,597)

Uprating Payments ............................................................................................................... 58,102 74,699 (16,597)

Replacements ....................................................................................................................... 17,612 20,402 (2,790)

Working Capital .................................................................................................................... (1,347) 653 (2,000)

Interest .................................................................................................................................. 62,032 62,577 (546)

Investment replayment ......................................................................................................... 14,185 13,577 930

Prior Year Carryover ............................................................................................................ (9,878) (13,317) (3,439)

Sum of Prior Year’s Expense Adjustment ............................................................................ (8,208) 0 (8,208)

Total Revenue Distribution ............................................................................................ 272,250 315,522 (43,272)

BCP 5-YEAR PROJECTIONS,

REVENUES AND EXPENSES

[$1,000]

FY 2001–

2005

projections

Total Revenues ........................ $317,809

Revenue Distribution:

O&M .................................. 141,448

Payments to States ........... 3,000

Other Expense .................. 42,490

Uprating Payments ............ 55,751

Replacements .................... 9,456

Working Capital ................. 0

Interest ............................... 57,792

Investment Repayment ..... 9,811

Carryover ........................... (1,939)

Total Revenue Distribution ................... 317,809

Basis for Rate Development

The annual Energy Dollar and

Capacity Dollar are designed to

maintain a 50/50 split between revenue

earned from energy sales and the

capacity credit revenue adjustment to

resolve the historic imbalance between

revenues collected from capacity and

energy. The cost to an individual BCP

Contractor varies because of the

differences in each BCP Contractor’s

entitlement.

Each Contractor is billed a monthly

Base Charge comprised of: (1) An energy

charge equal to the Rate Year Energy

Dollar multiplied by the Contractor’s

firm energy percentage multiplied by its

monthly energy ratio; and (2) a capacity

charge equal to the Rate Year Capacity

Dollar divided by 12 multiplied by the

Contractor’s contingent capacity

percentage. The monthly Base Charge is

due and payable regardless of the

amount of power and energy produced

by BCP. The annual Base Charge does

not depend upon the amount of power

and energy made available for sale.

In addition to the Contractor’s

monthly Base Charge, a Forecast Energy

Rate and a Forecast Capacity Rate are

calculated and applied to: (1) Excess

energy; (2) unauthorized overruns; and

(3) water pump energy.

At the end of the FY, and once the

actual energy deemed delivered is

known, Western determines a

Calculated Energy Rate. If the actual

energy deemed delivered is greater than

4,501.001 million kWhs, Western then

applies the Calculated Energy Rate to

each Contractor’s energy deemed

delivered to determine the Contractor’s

actual energy charge. Western then

establishes a credit or debit for each

Contractor based on the difference

between the Contractor’s Energy Dollar

and the Contractor’s actual energy

charge. The credit or debit is then

applied to the Contractor’s next power

bill.

Comments

During the public consultation and

comment period, Western received 4

written comment letters on the annual

rate adjustment. In addition, 5

contractor representatives commented

during the May 9, 2000, public

comment forum. All comments received

by the end of the public consultation

and comment period on June 8, 2000,

that were relevant to this rate process,

were reviewed and considered in

preparing this rate order.

Written comments were received

from:

Arizona Power Authority, AZ

Colorado River Commission, NV

Irrigation & Electrical Districts

Association of Arizona, AZ

Metropolitan Water District of Southern

California, CA

Comments dealt with specific cost

allocation methodologies, unbundling of

the Visitor Center cost components,

civil service retirement costs, providing

timely information to the Contractors,

and commitment to maintaining the

schedule for the various processes

implemented under the BCPIA. All

comments supported Western’s efforts

to reduce the Base Charge and Rates.

The following is a summary of all

relevant comments received and

Western’s responses to those comments.

Comments and responses are

paraphrased for brevity. Specific

comments are used for clarification

where necessary.

Rate Impacting Issues

Comment: A major component of the

increase in revenue requirements at

Hoover is associated with efforts to

increase and ensure unit availability

through capital investments. Can

Western and Reclamation provide an

estimate of the expected increase in unit

availability?

Response: This issue of unit

availability was discussed at the

Engineering and Operating Committee

(E&OC) meeting held May 17, 2000, in

Las Vegas, NV. As an agenda item for

the upcoming E&OC meeting in October

2000, Contractors are to decide, as a

group, how important plant availability

is to them and subsequently provide

that information to Western and

Reclamation as input into the decision

making process related to capital

investments.

Comment: A Contractor requested a

response from Western regarding a

60936 Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Notices

Contractor proposal whereby the costs

for the Buchanan Boulevard Project be

allocated in proportion to the voltage of

each project’s/entity’s transmission

lines interconnected at Mead rather than

allocating the total costs among

Western’s three projects.

Response: Western believes the

contractor proposal is incomplete or too

vague at this time to determine whether

it would be a more appropriate method

than Western’s current allocation

method. Western’s current allocation of

the total costs for the Buchanan

Boulevard Project is allocated between

Western’s three projects that are

interconnected at Mead Substation.

Based upon this logic, approximately

one-third is allocated to BCP, one-third

to the Parker-Davis Project, and onethird to the Pacific Northwest-Pacific

Southwest Intertie Project.

As stated during the informal stage of

the rate process, Western is pursuing

non-reimbursable emergency funding

from the Federal Highway

Administration. In the event that

Western is not successful in obtaining

this funding, Western will conduct a reevaluation of the current allocation

method, at which time Western would

further consider the Contractor’s

proposal.

Comment: A Contractor requested that

costs related to the Visitor Center and

Parking Structure be accounted for as

Visitor Services expense rather than

regular O&M expense. The Contractors

also requested a meeting to discuss

various Visitor Services issues.

Response: A meeting was held on

June 29, 2000, with Reclamation,

Western, and the Contractors to discuss

this issue. It was agreed by all that

beginning in FY 2001, the expenses

related to the Visitor Services would be

accounted for as such, and not be

included under regular O&M expense.

Comment: A Contractor expressed

concern that the costs due to the FERC

open access orders and additional costs

to power marketing services are

inappropriately charged to the existing

power Contractors. The Contractors are

recommending that Western and the

BCP Contractors revisit the cost

allocation procedures and determine a

more equitable determination of

allocating the costs to the projects.

Response: Western is currently

seeking to schedule a meeting with the

Contractors to discuss organizational

responsibilities and how each

organization within the Desert

Southwest Region allocates their costs.

Comment: The Contractors stated they

believe Western has no authority to

collect civil service retirement costs in

their rates.

Response: DOE General Counsel

stated by memorandum dated July 1,

1998, the Power Marketing

Administrations (PMAs) have the

authority to collect, through the rates,

the full costs of the retirement benefits.

In addition, FERC has issued numerous

orders approving the inclusion of such

costs in PMA rates: Western Area Power

Administration (Intertie Project), 87

FERC ¶ 61,346 (1999), Southeastern

Power Administration, 86 FERC

¶ 61,195 (1999), and Southeastern

Power Administration, 91 FERC

¶ 61,272 (2000). Under the provisions of

the Boulder Canyon Project Adjustment

Act, 43 U.S.C. 618–618p, all receipts

from the BCP shall be paid into the

Colorado River Dam Fund (CRDF) and

are available for defraying the costs of

operation. The total dollars associated

with these costs, collected into the

CRDF, under these authorities, through

FY 2001 is approximately $4.9 million.

General Issues

Comment: A Contractor commented

that Western and Reclamation need to

work harder on cost control and

containment in the future.

Response: Western and Reclamation

have worked very diligently with the

BCP Contractors under the BCPIA, and

will continue to work on cost control

and containment in coordination with

the Contractors. This collaborative

process has held total expenses to less

than an average annual increase of 2

percent since FY 1994.

Comment: A Contractor noted the

importance and need to pay attention to

the change in discretionary components

of the budget and not allow fixed

components to ‘‘muddy the water.’’

Response: Western and Reclamation

are aware of the cost components in the

annual budgets that are considered

discretionary items versus fixed items.

The various annual processes allow us

to focus on the discretionary items.

However, in the future, Western will

present the discretionary items

separately from the fixed items, and

demonstrate the impacts of both, on the

annual Base Charge and Rates.

Comment: A Contractor emphasized

its concern for rate increases, and that

BCP power was three-fourths of their

annual operating budget.

Response: Western and Reclamation

are committed to continue working with

the BCP Contractors in keeping

increases in the Base Charge and Rates

the lowest possible consistent with

sound business principles.

Comment: A Contractor noted the

need for more communications to

extend beyond the various processes,

among Western, Reclamation, and the

Contractors to ensure common

understanding of a Contractor’s intent

regarding questions, and the appropriate

responses.

Response: In addition to the E&OC,

the ten year operating plan, and the

technical review committee processes,

Western and Reclamation are open to

more communications with the

Contractors. Both agencies are

committed to enforcing the appropriate

time tables and are open to more

opportunities for better communications

for understanding Contractor needs

during, and outside of, each process at

the Contractor’s request.

Comment: The Contractors stated the

need for more timely processes. The

Contractors also commented that they

fully expect Western and Reclamation to

resolve, within the very near future, the

causes of the encumbrances by other

activities, resulting in information not

being made available to them due to

lack of resources.

Response: Western and Reclamation

apologize for the delay, lack of

information provided, and short turn

around for Contractor comment in the

current ten year operating plan process.

Both agencies are committed to working

diligently through future annual

processes, and in a timely manner, as

set forth and agreed to, under Section 12

and Appendix D of the BCPIA.

Comment: A commentor stated that

the E&OC process is ‘‘flawed’’ because

of the continuing increase in revenue

requirements for BCP, and that the

E&OC has the wrong focus. Rather than

justifying annual cost increases, they

need to refocus on the approach to

‘‘budgeting,’’ and hold Western and

Reclamation to the goal of a 2- to 3-

percent increase from year to year.

Response: Western and Reclamation

do not agree that the E&OC process is

flawed, given the accomplishments of

the E&OC since February 1995.

Processes were implemented that

created the existing rate methodology of

an annual Base Charge for the purchase

of Hoover power, which is derived from

the annual revenue requirement and the

contractual entitlement percentages,

rather than paying an annual energy and

capacity rate based on projected annual

hydrology. The annual ten year

operating plan process was developed

under the E&OC and allows for

Contractor input and review of the

annual plan that impacts the annual

Base Charge and Rates. Each FY, a final

operating plan is published with

Western, Reclamation, and the

Contractors agreeing to the increases in

annual expenses that go forth in the

annual rate process. In addition to these

Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Notices 60937

processes, Western and Reclamation are

committed to continue working with the

Contractors to mitigate the annual

increases and are open to additional

meetings with the Contractors. Once

again, as an example of Western’s and

Reclamation’s commitment to

minimizing year to year cost increases,

since 1994, BCP’s total expenses have

increased by less than an average of 2

percent per year through FY 2000.

Comment: A Contractor requests that

Western commit to implementing an

accounting process that identifies direct

costs associated with the generation and

transmission functions.

Response: Western is planning to

implement direct charging work order

numbers during the forthcoming FY.

Environmental Compliance

In compliance with the National

Environmental Policy Act (NEPA) of

1969, 42 U.S.C. 4321, et seq.; Council on

Environmental Quality Regulations (40

CFR parts 1500–1508); and DOE NEPA

Regulations (10 CFR part 1021), Western

has determined that this action is

categorically excluded from the

preparation of an environmental

assessment or an environmental impact

statement.

Determination Under Executive Order

12866

Western has an exemption from

centralized regulatory review under

Executive Order 12866; accordingly, no

clearance of this notice by the Office of

Management and Budget is required.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act of 1980

(5 U.S.C. 601, et seq.) requires Federal

agencies to perform a regulatory

flexibility analysis if a final rule is likely

to have a significant economic impact

on a substantial number of small entities

and there is a legal requirement to issue

a general notice of proposed

rulemaking. Western has determined

that this action does not require a

regulatory flexibility analysis since it is

a rulemaking of particular applicability

involving rates or services applicable to

public property.

Small Business Regulatory Enforcement

Fairness Act

Western has determined that this rule

is exempt from congressional

notification requirements under 5 U.S.C.

801 because the action is a rulemaking

of particular applicability relating to

rates or services and involves matters of

procedure.

Availability of Information

Information regarding this ratesetting

formula and the calculation of the FY

2001 Base Charge and Rates, including

PRSs, letters, memorandums, and other

supporting material made or kept by

Western used to develop the provisional

ratesetting formula, is available for

public review in the Desert Southwest

Customer Service Regional Office,

Western Area Power Administration,

615 South 43rd Avenue, Phoenix, AZ

85009–5313; and in the Power

Marketing Liaison Office, Room 8G–027,

1000 Independence Avenue SW.,

Washington, DC 20585–0001.

Submission to Federal Energy

Regulatory Commission

The ratesetting formula and the

calculation of the FY 2001 Base Charge

and Rates herein confirmed, approved,

and placed into effect on an interim

basis, together with supporting

documents, will be submitted to FERC

for confirmation and approval.

Order

In view of the foregoing and under the

authority delegated to me by the

Secretary, I hereby approve on an

interim basis, effective October 1, 2000,

Rate Schedule BCP–F6 for electric

service, and the FY 2001 Base Charge

and Rates for the Boulder Canyon

Project. Rate Schedule BCP–F6 will be

in effect on an interim basis, pending

FERC confirmation and approval or a

substitute ratesetting formula on a final

basis through September 30, 2005.

Dated: September 18, 2000.

T.J. Glauthier,

Deputy Secretary.

Boulder Canyon Project; Schedule of

Rates for Electric Service

[Rate Schedule BCP–F6; (Supercedes BCP–

F5)]

Effective: The first day of the first full

billing period beginning on or after

October 1, 2000, and remaining in

effect through September 30, 2005,

or until superseded.

Available: In the marketing area

serviced by the Boulder Canyon

Project (BCP).

Applicable: To power contractors served

by the BCP supplied through one

meter, at one point of delivery,

unless otherwise provided by

contract.

Character and Conditions of Service:

Alternating current at 60 hertz,

three-phase, delivered and metered

at the voltages and points

established by contract.

Base Charge: The total charge paid by a

contractor for annual capacity and

energy based on the annual revenue

requirement. The Base Charge shall

be composed of an energy

component and a capacity

component:

Energy Charge: Each Contractor shall

be billed monthly an energy charge

equal to the Rate Year Energy Dollar

multiplied by the Contractor’s firm

energy percentage multiplied by the

Contractor’s monthly energy ratio as

provided by contract.

Capacity Charge: Each Contractor

shall be billed monthly a capacity

charge equal to the Rate Year

Capacity Dollar divided by 12

multiplied by the Contractor’s

contingent capacity percentage as

provided by contract.

Forecast Rates:

Energy: Shall be equal to the Rate

Year Energy Dollar divided by the

lesser of the total master schedule

energy or 4,501.001 million kWhs.

This rate is to be applied for use of

excess energy, unauthorized

overruns, and water pump energy.

Capacity: Shall be equal to the Rate

Year Capacity Dollar divided by

1,951,000 kWs, to be applied for use

of unauthorized overruns.

Calculated Energy Rate: Within 90

days after the end of each rate year,

a Calculated Energy Rate shall be

calculated. If the energy deemed

delivered is greater than 4,501.001

million kWhs, then the Calculated

Energy Rate shall be applied to each

Contractor’s energy deemed

delivered. A credit or debit shall be

established based on the difference

between the Contractor’s Energy

Dollar and the Contractor’s actual

energy charge, to be applied the

following month calculated or as

soon as possible thereafter.

Lower Basin Development Fund

Contribution Charge: The

contribution charge is 4.5 mills/

kWh for each kWh measured or

scheduled to an Arizona purchaser

and 2.5 mills/kWh for each kWh

measured or scheduled to a

California or Nevada purchaser,

except for purchased power.

Billing for Unauthorized Overruns: For

each billing period in which there

is a contract violation involving an

unauthorized overrun of the

contractual power obligations, such

overrun shall be billed at 10 times

the Forecast Energy Rate and

Forecast Capacity Rate. The

contribution charge shall be applied

also to each kWh of overrun.

Adjustments: None.

[FR Doc. 00–26331 Filed 10–12–00; 8:45 am]

BILLING CODE 6450–01–P