27882 Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Rules and Regulations

29See Open Access NOPR, IV FERC Stats. & Regs.

¶ 32,514 at ll, mimeo at 96–97; 290–91.

30Policy Statement at 31,144.

31However, we note that our ‘‘or’’ policy permits

transmission rates to reflect the higher of embedded

or opportunity costs and that the calculation of

such costs can be on an annual basis. See Florida

Power & Light Company, 70 FERC ¶ 61,158 at

61,483 (1995), rehearing pending.

32See, e.g., Heartland Energy Services, Inc., 68

FERC ¶ 61,223 at 62,062–63 (1994); Ocean State

Power, 44 FERC ¶61,261 at 61,983–85 (1988).

33See AEP, 67 FERC at 61,490; Open Access

NOPR, IV FERC Stats. & Regs. ¶ 32,514 at ll,

mimeo at 87–88.

34Policy Statement at 31,142–43.

35 Id. at 31,142–43.

transmission rates; and (4) require

power pools to meet the comparability

standard. We will deny Catex’s motion

for reconsideration with regard to these

issues. The first three issues are already

adequately addressed in the pricing

principles set forth in the Policy

Statement as discussed briefly below.

The fourth (i.e., that power pools be

required to meet the comparability

standard) has already been proposed by

the Commission in the Open Access

NOPR.29

With regard to Catex’s request that the

Commission emphasize simplicity and

predictability in transmission rates, we

note that the Policy Statement already

reflects the Commission’s support of

transmission pricing that is simple and

predictable. Indeed, one of the Policy

Statement’s pricing principles is that

transmission pricing should be

practical. To this end, the Policy

Statement provides that a transmission

user should be able to calculate how

much it will be charged for transmission

service.30 At the same time, however,

the Policy Statement recognizes that this

principle may need to be balanced on a

case-by-case basis against the other

pricing principles, such as the principle

that transmission pricing should

promote economic efficiency. In

addition, although Catex contends that

charges to a transmission customer

should not be raised after the fact, for

example, to compensate for loop flows

on other systems, the Commission

believes that whether a transmission

rate should be increased, as opposed to

fixed for the term of a transaction, is a

matter to be determined based on the

facts and circumstances of a particular

case.31

With regard to Catex’s concern about

discounts, we note that the Commission

historically has prohibited preferential

pricing to affiliates.32 Moreover, such

preferential pricing would be

inconsistent with the requirement of

non-discriminatory open access

transmission.33 As the Policy Statement

makes clear, the requirement that

transmission pricing must reflect

comparability prohibits the

transmission owner from selling itself

transmission service at a discount.34

As to Catex’s concern that subsidies

be avoided, we reiterate that the Policy

Statement provides that, consistent with

the principle that transmission pricing

must reflect comparability, a

transmission owner that uses its own

transmission system to make off-system

sales should pay for transmission

service at the same rate that third-party

customers pay for the same service. As

a result, a transmission owner is

prohibited from selling itself

transmission service at a discount that

would be subsidized by native load and

transmission-only customers.35 With

respect to Catex’s concerns about

appropriate pricing of non-firm

transmission services, the Commission

will consider on a case-by-case basis

whether non-firm transmission

customers are subsidizing other

transmission users.

The Commission Orders

(A) The motions for reconsideration of

American Forest and Paper, Catex, the

Vermont Department, and RUS are

hereby denied as set forth in the body

of this order.

(B) The Commission’s Policy

Statement is hereby clarified as set forth

in the body of this order.

By the Commission.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc. 95–12990 Filed 5–25–95; 8:45 am]

BILLING CODE 6717–01–P

18 CFR Part 34

[Docket No. RM92–12–000]

Streamlining of Regulations Pertaining

to Parts II and III of the Federal Power

Act and the Public Utility Regulatory

Policies Act of 1978; Technical

Amendment to Order No. 575

May 22, 1995.

AGENCY: Federal Energy Regulatory

Commission.

ACTION: Final rule; technical

amendment.

SUMMARY: The Federal Energy

Regulatory Commission is amending the

final rule issued on January 13, 1995 (60

FR 5831, Jan. 25, 1995) in this

proceeding to correct an error in the

‘‘Worksheet for Computation of Interest

Coverage’’ contained in 18 CFR 34.4(e).

EFFECTIVE DATE: May 22, 1995.

FOR FURTHER INFORMATION CONTACT:

Wayne McDanal, Office of Chief

Accountant, Federal Energy Regulatory

Commission, 825 North Capitol Street,

N.E., Washington, D.C. 20426, (202)

219–2622.

SUPPLEMENTARY INFORMATION:

List of Subjects in 18 CFR Part 34

Electric power, Electric utilities,

Reporting and recordkeeping

requirements, Securities.

Lois D. Cashell,

Secretary.

Accordingly, Part 34, Chapter I, Title

18 of the Code of Federal Regulations is

amended as set forth below.

PART 34—APPLICATION FOR

AUTHORIZATION OF THE ISSUANCE

OF SECURITIES OR THE ASSUMPTION

OF LIABILITIES

1. The authority citation for Part 34

continues to read as follows:

Authority: 16 U.S.C. 791a–825r, 2601–

2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352.

§ 34.4 [Amended]

2. In the worksheet in § 34.4(e) the

words

‘‘Total Interest Expense ÷ Income Before

Interest and Income Taxes = Interest

Coverage’’

are removed and the words

‘‘Income Before Interest and Income

Taxes ÷ Total Interest Expense =

Interest Coverage’’

are added in their place.

[FR Doc. 95–12988 Filed 5–25–95; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF THE TREASURY

United States Secret Service

31 CFR Part 413

[1505–AA68]

Closure of Streets

AGENCY: United States Secret Service,

Treasury.

ACTION: Final rule.

SUMMARY: Pursuant to 31 U.S.C. 321, 18

U.S.C. 3056, 3 U.S.C. 202, and Treasury

Order 170–09, the Secret Service has

closed to public vehicular traffic the

following streets in order to secure the

perimeter of the White House: (i) the

segment of Pennsylvania Avenue NW.,

between Madison Place and

Seventeenth Street and; (ii) State Place

and the segment of South Executive

Avenue that connects into State Place.

DATES: 5:00 a.m. (local time), May 20,

1995.