Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 / Notices 31767

documents must be filed by providing

the original and the number of copies

provided by the Commission’s

regulations to: The Secretary, Federal

Energy Regulatory Commission, 888

First Street, N.E., Washington, D.C.

20426. A copy of any motion to

intervene must also be served upon each

representative of the Applicant

specified in the particular application.

D2. Agency Comments—Federal,

state, and local agencies are invited to

file comments on the described

application. A copy of the application

may be obtained by agencies directly

from the Applicant. If an agency does

not file comments within the time

specified for filing comments, it will be

presumed to have no comments. One

copy of an agency’s comments must also

be sent to the Applicant’s

representatives.

David P. Boergers,

Acting Secretary.

[FR Doc. 98–15368 Filed 6–9–98; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Southwestern Power Administration

Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power

Administration, DOE.

ACTION: Notice of Proposed Extension.

SUMMARY: The Current Sam Rayburn

Dam Project rate was approved by the

Federal Energy Regulatory Commission

(FERC) on December 7, 1994, Docket

No. EF94–4021–000. These rates are

effective October 1, 1994, through

September 30, 1998. The Administrator,

Southwestern, has prepared Current and

Revised 1998 Power Repayment Studies

for the Sam Rayburn Dam Project which

show the need for a minor rate

adjustment of $3,732 (0.2 percent

decrease) in annual revenues. In

accordance with Southwestern’s rate

adjustment threshold, dated June 23,

1987, the Administrator, Southwestern,

may determine, on a case by case basis,

that for a revenue decrease or increase

in the magnitude of two percent,

deferral of a formal rate filing is in the

best interest of the Government. Also,

the Deputy Secretary of Energy has the

authority to extend rates, previously

confirmed and approved by FERC, on an

interim basis, pursuant to 10 CFR

Sections 903.22(h) and 902.23(a)(3). In

accordance with DOE rate extension

authority and Southwestern’s rate

adjustment threshold, the Administrator

is proposing that the rate adjustment be

deferred and that the current rates be

extended for a one-year period effective

through September 30, 1999.

DATES: Written comments are due on or

before July 10, 1998.

ADDRESSES: Written comments should

be submitted to the Administrator,

Southwestern Power Administration,

U.S. Department of Energy, P.O. Box

1619, Tulsa, Oklahoma 74101.

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,

(918) 595–6696.

SUPPLEMENTARY INFORMATION: The U.S.

Department of Energy was created by an

Act of the U.S. Congress, Department of

Energy Organization Act, Pub. L. 95–91,

dated August 4, 1977, and

Southwestern’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 other two projects (Sam

Rayburn and Robert Douglas Willis) are

not interconnected with Southwestern’s

Integrated System. Instead, their power

is marketed under separate contracts

through which two customers purchase

the entire power output of each of the

projects at the dams. Following

Department of Energy Order Number RA

6120.2, the Administrator,

Southwestern, prepared a 1998 Current

Power Repayment Study (PRS) using the

existing Sam Rayburn Dam Project rate

schedule. The PRS shows the

cumulative amortization through FY

1997 at $12,156,954 on a total

investment of $25,676,015. The FY 1998

Revised PRS indicates the need for a

decrease in annual revenues of $3,732,

or 0.2 percent, lower than the present

annual revenues.

As a matter of practice, Southwestern

would defer an indicated rate

adjustment that falls within

Southwestern’s plus-or-minus two

percent rate adjustment threshold. The

threshold was developed to add

efficiency to the process of maintaining

adequate rates and is consistent with

cost recovery criteria within DOE Order

Number RA 6120.2 regarding rate

adjustment plans. The Sam Rayburn

Dam Project’s FY 1997 (last year’s) PRS

concluded that the annual revenues

needed to be decreased by 0.1 percent.

At that time, it was determined prudent

to defer the decrease in accordance with

the established threshold and the

current rate schedule was continued for

one year. It once again seems prudent to

defer this rate adjustment of 0.2 percent,

or $3,732 per year in accordance with

Southwestern’s rate adjustment

threshold and reevaluate the ability of

the existing rate to provide sufficient

revenues to satisfy costs projected in the

FY 1999 (next year’s) PRS.

On December 7, 1994, the current rate

schedule for the Sam Rayburn Dam

Project was confirmed and approved by

the FERC on a final basis for a period

that will end on September 30, 1998. In

accordance with 10 CFR Sections

903.22(h) and 903.23(a)(3), the Deputy

Secretary may extend existing rates on

an interim basis beyond the period

specified by the FERC. As a result of the

benefits obtained by a rate adjustment

deferral (reduced Federal expense and

rate stability) and the Deputy Secretary’s

authority to extend a previously

approved rate, Southwestern’s

Administrator is proposing to extend

the current Sam Rayburn Dam Project

rate schedule. The schedule is to be

effective for the one-year period

beginning October 1, 1998, and

extending through September 30, 1999.

Opportunity is presented for

customers and interested parties to

receive copies of the study data for the

Sam Rayburn Dam Project. If you desire

a copy of the Repayment Study Data

Package for the Sam Rayburn Dam

Project, please submit your request to:

Mr. Forrest E. Reeves, Assistant

Administrator, Office of Corporate

Operations, P.O. Box 1619, Tulsa, OK

74101, or call (918) 595–6696.

Following review of the written

comments (absent any substantive

reasons to do otherwise), the

Administrator will submit the rate

extension proposal for the Sam Rayburn

Dam Project to the Deputy Secretary of

Energy for confirmation and approval.

Issued in Tulsa, Oklahoma, this 22nd day

of May, 1998.

Michael A. Deihl,

Administrator.

[FR Doc. 98–15455 Filed 6–9–98; 8:45 am]

BILLING CODE 6450–01–P