[Federal Register Volume 63, Number 76 (Tuesday, April 21, 1998)]
[Notices]
[Pages 19722-19723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10493]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project--Proposed Firm Power Service Base Charge

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed Base Charge adjustment.

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SUMMARY: The Western Area Power Administration (Western) Desert 
Southwest Region (DSW) is announcing the fiscal year (FY) 1998 annual 
rate adjustment process for FY 1999 Revenue Requirements and Rates 
under Rate Order WAPA-70 for firm power service for the Boulder Canyon 
Project (BCP). The annual rate adjustments are a requirement of the 
ratesetting methodology of WAPA-70 which was approved on a final basis 
by the Federal Energy Regulatory Commission (FERC) on April 19, 1996. 
The existing rate schedule was placed into effect on November 1, 1995. 
The power repayment study indicates the proposed Base Charge herein for 
BCP firm power service is necessary to provide sufficient revenue to 
pay all annual costs (including interest expense), plus repayment of 
required investment within the allowable time period. The proposed Base 
Charge for firm power service is expected to become effective October 
1, 1998. This Federal Register notice initiates the formal process for 
the proposed Base Charge.

DATES: Submit comments on or before July 20, 1998.
    The forums dates are:
    1. Public information forum, May 14, 1998, 10:30 a.m. MST, Phoenix, 
Arizona.
    2. Public comment forum, June 11, 1998, 10:30 a.m. MST, Phoenix, 
Arizona.

ADDRESSES: Written comments should be sent to, Mr. J. Tyler Carlson, 
Regional Manager, Desert Southwest Customer Service Region, Western 
Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457. The 
public forums will be held at the Desert Southwest Regional Office, 615 
South 43rd Avenue, Phoenix, Arizona.

FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602) 
352-2768.

SUPPLEMENTARY INFORMATION: In accordance with established rate design 
principles for the BCP, Western has established a proposed Base Charge, 
consisting of an Energy Dollar and Capacity Dollar, and has established 
a Forecast Energy Rate and Forecast Capacity Rate. The proposed Base 
Charge for BCP firm power is based on an Annual Revenue Requirement of 
$49,728,625. The proposed Base Charge consists of an Energy Dollar 
(energy component) amount of $26,439,847 and a Capacity Dollar 
(capacity component) amount of $23,288,777. The Forecast (proposed) 
Energy Rate is 5.3242 mills/kilowatthour (mills/kWh), and the Forecast 
(proposed) Capacity Rate is $0.9947 per kilowatt per month ($/kWmo).
    The existing BCP firm power Base Charge is based on an Annual 
Revenue

[[Page 19723]]

Requirement of $43,479,183, consisting of an Energy Dollar (energy 
component) amount of $22,527,359 and a Capacity Dollar (capacity 
component) amount of $20,951,824. The existing BCP energy rate is 4.41 
mills/kWh and capacity rate is $0.89/kWmo.

Authorities

    Since the proposed rates constitute a major rate adjustment as 
defined by the procedures for public participation in general rate 
adjustments, as cited below, both a public information forum and a 
public comment forum will be held. After review of public comments, 
Western will recommend proposed charges/rates for approval on a final 
basis by the Deputy Secretary of DOE pursuant to Rate Order No. WAPA-
70.
    The power rates for the BCP are established pursuant to the 
Department of Energy Organization Act (42 U.S.C.7101, et seq.), the 
Reclamation Act of 1902 (43 U.S.C. 391, 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)), the Colorado River 
Basin Project Act of 1968 (43 U.S.C. 1501, et seq.), the Colorado River 
Storage Project Act (43 U.S.C. 620, et seq.), the Boulder Canyon 
Project Act (43 U.S.C. 617, et seq.), the Boulder Canyon Project 
Adjustment Act (43 U.S.C. 618, et seq.), the Hoover Power Plant Act of 
1984 (43 U.S.C. 619, et seq.), the General Regulations for Power 
Generation, Operation, Maintenance, and Replacement at the BCP, 
Arizona/Nevada (43 CFR Part 431) published in the Federal Register at 
51 FR 23960 on July 1, 1986, and the General Regulations for the 
Charges for the Sale of Power From the BCP, Final Rule (10 CFR Part 
904) published in the Federal Register at 50 FR 37837 on September 18, 
1985, and the DOE financial reporting policies, procedures, and 
methodology (DOE Order No. RA 6120.2 dated September 20, 1979).
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary of Energy (Secretary) 
delegated: (1) The authority to develop long-term power and 
transmission rates on a nonexclusive basis to the Administrator of 
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 power rates to FERC.

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, requires 
Federal agencies to perform a regulatory flexibility analysis if a 
proposed rule is likely to have a significant economic impact on a 
substantial number of small entities. Western has determined that this 
action relates to rates or services offered by Western and, therefore, 
is not a rule within the purview of the act.

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969 
(NEPA), 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 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.

Availability of Information

    All brochures, studies, comments, letters, memorandums, and other 
documents made or kept by Western for the purpose of developing the 
proposed rates for energy and capacity are and will be made available 
for inspection and copying at Western's Desert Southwest Regional 
Office, 615 South 43rd Avenue, Phoenix, Arizona.

    Dated: April 10, 1998.
Michael S. Hacskaylo,
Acting Administrator.
[FR Doc. 98-10493 Filed 4-20-98; 8:45 am]
BILLING CODE 6450-01-P