50316 Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 

1California Independent System Operator, Inc., 

112 FERC ¶ 61,013 at P 39 (2005).

2See id. at P 37 (‘‘[E]ach wholesale customer 

should have the option of establishing, as a separate 

zone, the set of nodes where it receives energy).

time on the specified comment date. It 

is not necessary to separately intervene 

again in a subdocket related to a 

compliance filing if you have previously 

intervened in the same docket. Protests 

will be considered by the Commission 

in determining the appropriate action to 

be taken, but will not serve to make 

protestants parties to the proceeding. 

Anyone filing a motion to intervene or 

protest must serve a copy of that 

document on the Applicant. In reference 

to filings initiating a new proceeding, 

interventions or protests submitted on 

or before the comment deadline need 

not be served on persons other and the 

Applicant. 

The Commission encourages 

electronic submission of protests and 

interventions in lieu of paper, using the 

FERC Online links at http://

www.ferc.gov. To facilitate electronic 

service, persons with Internet access 

who will eFile a document and/or be 

listed as a contact for an intervenor 

must create and validate an 

eRegistration account using the 

eRegistration link. Select the eFiling 

link to log on and submit the 

intervention or protests. 

Persons unable to file electronically 

should submit an original and 14 copies 

of the intervention or protest to the 

Federal Energy Regulatory Commission, 

888 First St. NE., Washington, DC 

20426. 

The filings in the above proceedings 

are accessible in the Commission’s 

eLibrary system by clicking on the 

appropriate link in the above list. They 

are also available for review in the 

Commission’s Public Reference Room in 

Washington, DC. There is an 

eSubscription link on the web site that 

enables subscribers to receive e-mail 

notification when a document is added 

to a subscribed dockets(s). For 

assistance with any FERC Online 

service, please e-mail 

FERCOnlineSupport@ferc.gov or call 

(866) 208–3676 (toll free). For TTY, call 

(202) 502–8659.

Linda Mitry, 

Deputy Secretary.

[FR Doc. E5–4669 Filed 8–25–05; 8:45 a.m.] 

BILLING CODE 6717–01–P

DEPARTMENT OF ENERGY

Federal Energy Regulatory 

Commission 

[Docket Nos. ER02–1656–000, ER02–1656–

026] 

California Independent System 

Operator Corporation; Notice of 

Technical Conference 

August 22, 2005. 

In accordance with the directive of 

the July 1, 2005 Order on Further 

Amendments to the California 

Independent System Operator’s 

Comprehensive Market Redesign 

Proposal,1 Federal Energy Regulatory 

Commission (Commission) staff will 

convene a technical conference to 

explore tariff issues related to demand 

response options, including special case 

nodal pricing. In addition to demand 

response generally, and special case 

nodal pricing in particular, participants 

should also come prepared to discuss 

the issue of wholesale load choosing to 

opt out of Load Aggregation Points 

(LAP).2

The technical conference, which all 

parties may attend, will be held in San 

Francisco, California, on Tuesday, 

September 13, 2005, at 9 a.m. (PST) at 

the Renaissance Parc 55 Hotel, 55 Cyril 

Magnin Street, San Francisco, California 

94102; (415) 392–8000. 

For further information, contact 

Heidi.Werntz@FERC.gov; (202) 502–

8910.

Linda Mitry, 

Deputy Secretary.

[FR Doc. E5–4696 Filed 8–25–05; 8:45 am] 

BILLING CODE 6717–01–P

DEPARTMENT OF ENERGY

Federal Energy Regulatory 

Commission 

[Docket Nos. EL00–95–000 and EL00–98–

000] 

San Diego Gas & Electric Company, 

Complainant, v. Sellers of Energy and 

Ancillary Services Into Markets 

Operated by the California 

Independent System Operator and the 

California Power Exchange, 

Respondents; Investigation of 

Practices of the California Independent 

System Operator and the California 

Power Exchange; Notice of Technical 

Conference (Listen-Only Call-In 

Number) 

August 22, 2005. 

On August 16, 2005, the Commission 

issued a notice informing parties that 

the Federal Energy Regulatory 

Commission staff will convene a 

technical conference to finalize the 

template for submission of cost filings, 

as discussed in San Diego Gas & Electric 

Co. v. Sellers of Energy & Ancillary 

Services, et al., 112 FERC ¶ 61,1176 

(2005). 

This technical conference will be held 

on August 25, 2005, at the Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 20426, 

beginning at 9 a.m. (EST) in the 

Commission Meeting Room. 

By this notice, we announce further 

that a listen-only telephone line will be 

provided for interested parties to call-in 

and listen to the telephone conference. 

Below is the call-in information for the 

listen-only conference call:

Date: August 25, 2005. 

Time: 9 a.m. EDT. 

Toll-free Number: 888–390–0678. 

Passcode: 5848040.

For more information about the 

conference, please contact: Heidi 

Werntz, Office of General Counsel, 

Federal Energy Regulatory Commission, 

at (202) 502–8910 or 

Heidi.Werntz@ferc.gov.

Magalie R. Salas, 

Secretary.

[FR Doc. E5–4700 Filed 8–25–05; 8:45 am] 

BILLING CODE 6717–01–P

DEPARTMENT OF ENERGY

Western Area Power Administration 

Boulder Canyon Project; Rate Order 

No. WAPA–120

AGENCY: Western Area Power 

Administration, DOE.

Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 50317

1Under Rate schedule BCP–F6, the base charge 

during the one-year period (October 1, 2004 through 

September 30, 2005) was $57,654,683. The energy 

rate during this time was 7.41 mills/kWh. The 

capacity charge during this time was $1.39 per 

kWmonth. This resulted in an overall composite 

rate of 14.82 mills/kWh for this one-year period. 

See Department of Energy, Western Area Power 

Administration, Boulder Canyon Project-Base 

Charge and Rates, approved by Deputy Secretary 

McSlarrow, 69 FR 51458, August 19, 2004.

ACTION: Notice of order concerning 

existing ratesetting formula and FY 2006 

base charge and rates. 

SUMMARY: The Deputy Secretary of 

Energy confirmed and approved Rate 

Order No. WAPA–120 and Rate 

Schedule BCP-F7, placing the electric 

service ratesetting formula and fiscal 

year (FY) 2006 base charge and rates 

from the Boulder Canyon Project (BCP) 

of the Western Area Power 

Administration (Western) into effect on 

an interim basis. The provisional base 

charge and rates will be in effect until 

the Federal Energy Regulatory 

Commission (Commission) confirms, 

approves, and places them into effect on 

a final basis or until they are replaced 

by other rates. The provisional base 

charge and rates will provide sufficient 

revenue to pay all annual costs, 

including interest expense, and 

repayment of power investment within 

the allowable periods.

DATES: Rate Schedule BCP–F7 will be 

placed into effect on an interim basis on 

the first day of the first full billing 

period beginning on or after October 1, 

2005, and will be in effect until the 

Commission confirms, approves, and 

places the rate schedule in effect on a 

final basis through September 30, 2010, 

or until the rate schedule is superseded.

FOR FURTHER INFORMATION CONTACT: Mr. 

J. Tyler Carlson, Regional Manager, 

Desert Southwest Customer Service 

Region, Western Area Power 

Administration, PO Box 6457, Phoenix, 

AZ 85005–6457, (602) 605–2453, e-mail 

carlson@wapa.gov or Mr. Jack Murray, 

Rates Team Lead, Desert Southwest 

Customer Service Region, Western Area 

Power Administration, PO Box 6457, 

Phoenix, AZ 85005–6457, (602) 605–

2442, e-mail jmurray@wapa.gov.

SUPPLEMENTARY INFORMATION: The 

Deputy Secretary of Energy approved 

existing Rate Schedule BCP–F6 for BCP 

electric service on September 18, 2000 

(Rate Order No. WAPA–94, October 13, 

2000, 65 FR 60932). The Commission 

confirmed and approved the rate 

schedule on July 31, 2001, in FERC 

Docket No. EF00–5092–000. The 

existing rate schedule became effective 

October 1, 2000, and expires September 

30, 2005. 

The formula for establishing annual 

rates set forth in Rate Schedule BCP–-

F6, which is effective from October 1, 

2000, through September 30, 2005, will 

be superseded by Rate Schedule BCP–-

F7 for the period October 1, 2005, and 

ending September 30, 2010. The 

provisional base charge and rates for the 

one year period from October 1, 2005, 

to September 30, 2006, will consist of a 

base charge of $57,465,018 and an 

energy charge of 7.03 mills/kWh, and a 

capacity charge of $1.37 per kWmonth. 

This results in an overall composite rate 

of 14.05 mills/kWh on October 1, 2005. 

The composite rate of 14.05 mills/kWh 

on October 1, 2005, represents a 

decrease of approximately five percent 

when compared with the composite rate 

of 14.82 mills/kWh during the last year 

of BCP–F6 (October 1, 2004–September 

30, 2005).1

By Delegation Order No. 00–037.00, 

effective December 6, 2001, the 

Secretary of Energy delegated: (1) The 

authority to develop power and 

transmission rates to Western’s 

Administrator, (2) the authority to 

confirm, approve, and place such rates 

into effect on an interim basis to the 

Deputy Secretary of Energy, and (3) the 

authority to confirm, approve, and place 

into effect on a final basis, to remand or 

to disapprove such rates to the 

Commission. Existing DOE procedures 

for public participation in power rate 

adjustments (10 CFR part 903) were 

published on September 18, 1985. 

Under Delegation Order Nos. 00–

037.00 and 00–001.00A, 10 CFR part 

903, and 18 CFR part 300, I hereby 

confirm, approve, and place Rate Order 

No. WAPA–120, the provisional 

ratesetting formula, and the FY 2006 

proposed BCP electric service base 

charge and rates into effect on an 

interim basis. The new Rate Schedule 

BCP–F7 will be promptly submitted to 

the Commission for confirmation and 

approval on a final basis.

Dated: August 11, 2005. 

Clay Sell, 

Deputy Secretary.

Department of Energy 

Deputy Secretary 

[Rate Order No. WAPA–120] 

In the matter of: Western Area Power 

Administration, Rate Adjustment for 

the Boulder Canyon Project; Order 

Confirming, Approving, and Placing the 

Boulder Canyon Project Electric Service 

Ratesetting Formula and FY 2006 Base 

Charge and Rates Into Effect on an 

Interim Basis 

The base charge and rates were 

established in accordance with section 

302 of the Department of Energy (DOE) 

Organization Act (42 U.S.C. 7152). This 

Act transferred to and vested in the 

Secretary of Energy the power marketing 

functions of the Secretary 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 laws, 

particularly section 9(c) of the 

Reclamation Project Act of 1939 (43 

U.S.C. 485h(c)), and other Acts that 

specifically apply to the project 

involved. 

By Delegation Order No. 00–037.00, 

effective December 6, 2001, the 

Secretary of Energy delegated: (1) The 

authority to develop power and 

transmission rates to Western’s 

Administrator, (2) the authority to 

confirm, approve, and place such rates 

into effect on an interim basis to the 

Deputy Secretary of Energy, and (3) the 

authority to confirm, approve, and place 

into effect on a final basis, to remand or 

to disapprove such rates to the 

Commission. Existing DOE procedures 

for public participation in power rate 

adjustments (10 CFR part 903) were 

published on September 18, 1985. 

Acronyms and Definitions 

As used in this Rate Order, the 

following acronyms and definitions 

apply: 

Administrator: The Administrator of 

the Western Area Power 

Administration. 

ARR: Annual Revenue Requirement. 

It is the annual base charge. 

BC: Base charge. The total charge paid 

by all Contractors for capacity and 

energy based on the annual revenue 

requirement. The base charge shall be 

composed of a capacity component and 

an energy component. 

CD: Capacity Dollars. Fifty percent 

(50%) of the annual revenue 

requirement. 

CO: Carry Over. Revenue surplus or 

deficit from the previous FY, excluding 

the funds for the working capital 

balance. 

CS: Capacity Sales. 

Commission: Federal Energy 

Regulatory Commission. 

Composite Rate: The rate for electric 

service which is the total annual 

revenue requirement for capacity and 

energy divided by the total annual 

energy sales. It is expressed in mills/

kWh and used for comparison purposes. 

Contractor: An entity that has a 

contract with Western for BCP Electric 

Service. 

Customer: An entity with a contract 

that is receiving service from Western’s 

DSWR. 

50318 Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 

DOE: United States Department of 

Energy. 

DOE Order RA 6120.2: An order 

outlining power marketing 

administration financial reporting and 

ratemaking procedures. 

DSWR: The Desert Southwest Region 

of Western. 

ED: Energy Dollars. Fifty percent 

(50%) of the annual base charge. 

ES: Energy Sales. 

FCR: Forecast Capacity Rate. The rate 

which sets forth the charges for 

capacity. It is expressed in $ per 

kWmonth. 

FER: Forecast Energy Rate. The rate 

which sets forth the charges for energy. 

It is expressed in mills/kWh. 

FERC: The Commission (to be used 

when referencing Commission Orders). 

FRN: Federal Register notice. 

FY: Fiscal Year; October 1 to 

September 30. 

kW: Kilowatt—the electrical unit of 

capacity that equals 1,000 watts. 

kWh: Kilowatthour—the electrical 

unit of energy that equals 1,000 watts in 

1 hour. 

kWmonth: Kilowattmonth—the 

electrical unit of the monthly amount of 

capacity. 

Mill: A monetary denomination of the 

United States that equals one tenth of a 

cent or one thousandth of a dollar. 

Mills/kWh: Mills per kilowatthour—

the unit of charge for energy. 

MW: Megawatt—the electrical unit of 

capacity that equals 1 million watts or 

1,000 kilowatts. 

NEPA: National Environmental Policy 

Act of 1969 (42 U.S.C. 4321, et seq.). 

O&M: Operation and Maintenance. 

OM&R: Operation, Maintenance & 

Replacement. 

OR: Other Revenues. This is nonpower revenue from the visitors’

services at Hoover Dam. 

Power: Capacity and energy.

Provisional Rate: A rate which has 

been confirmed, approved, and placed 

into effect on an interim basis by the 

Deputy Secretary. 

PRS: Power repayment study. 

PY: Prior Year. 

Ratesetting PRS: The PRS used for the 

rate adjustment proposal in support of 

the provisional base charge and rates. 

Reclamation: United States 

Department of the Interior, Bureau of 

Reclamation. 

Reclamation Law: A series of Federal 

laws. Viewed as a whole, these laws 

create the originating framework under 

which Western markets power. 

Revenue Requirement: The revenue 

required to recover annual expenses, 

such as O&M, interest, repayment of 

Federal investments, and other assigned 

costs. 

Supporting Documentation: A 

compilation of data and documents 

supporting the rate package and the rate 

proposal. 

TE: Total Expenses. All annual costs 

such as operation and maintenance, 

payment to states, uprating payments, 

interest expense, and other expenses. 

WSR: Water Sales Revenue. Revenue 

from sales associated with water being 

diverted from the lower Colorado River 

above and below Hoover Dam. 

Western: United States Department of 

Energy, Western Area Power 

Administration. 

Effective Date 

The new interim ratesetting formula, 

base charge and rates will take effect on 

the first day of the first full billing 

period beginning on or after October 1, 

2005, and will remain in effect until 

September 30, 2006, pending approval 

by the Commission on a final basis. 

Public Notice and Comment 

Western followed the Procedures for 

Public Participation in Power and 

Transmission Rate Adjustments and 

Extensions, 10 CFR part 903, in 

developing these rates. The steps 

Western took to involve interested 

parties in the rate process were: 

1. On February 7, 2005, the proposed 

rate adjustment informal process began 

when Western mailed a notice 

announcing an informal customer 

meeting to all BCP customers and 

interested parties. Western also 

announced the public forum dates as 

well as access to the BCP rate 

adjustment Web site at http://

www.wapa.gov/dsw/pwrmkt/BCP/

RateAdjust.htm. 

2. On February 18, 2005, a notice (70 

FR 8361) was published in the Federal 

Register, announcing the proposed base 

charge and rates for BCP beginning the 

public consultation and comment 

period, and announcing the public 

information and public comment 

forums. 

3. On February 23, 2005, Western 

mailed the published Federal Register

notice dated February 18, 2005, to the 

BCP customers and interested parties 

informing them of the public 

information forum on April 6, 2005, and 

public comment forum on May 4, 2005, 

in Phoenix, Arizona. Western also 

announced that the FRN had been 

posted to the Web site. 

4. On March 9, 2005, Western hosted 

an informal customer meeting in 

Phoenix, Arizona. At this informal 

meeting, Western explained the 

rationale for the rate adjustment and 

answered questions.

5. On March 24, 2005, Western 

provided the customers with 

information in response to requests at 

the informal meeting held March 9, 

2005. 

6. On April 6, 2005, Western held the 

public information forum at the DSWR 

Office in Phoenix, AZ. Western 

provided detailed explanations of the 

proposed base charge and rates for BCP 

and answered questions. Western 

provided a copy of the rate presentation, 

supporting documentation, and 

informational handouts. 

7. On May 4, 2005, Western held a 

comment forum to give the public an 

opportunity to comment for the record. 

Five individuals representing eleven 

entities commented at this forum. 

8. Western received seven comment 

letters during the consultation and 

comment period, which ended May 19, 

2005. All formally submitted comments 

have been considered in preparing this 

Rate Order. 

Comments 

Written comments were received from 

the following organizations: Arizona 

Power Authority, Arizona; Colorado 

River Commission, Nevada; Energy 

Outfitters, LLC, Arizona; Irrigation & 

Electrical Districts Association of 

Arizona, Arizona; Metropolitan Water 

District of Southern California, 

California; Salt River Project, Arizona; 

Utility Resource Services, Arizona. 

Oral comments were made on behalf 

of the following organizations: Aguila 

Irrigation District, Arizona; Arizona 

Power Authority, Arizona; City of 

Safford, Arizona; Colorado River 

Commission, Nevada; Electrical District 

Number 8, Arizona; Harquahala Valley 

Power District, Arizona; Irrigation & 

Electrical Districts Association of 

Arizona, Arizona; Metropolitan Water 

District of Southern California, 

California; McMullen Valley Water 

Conservation District, Arizona; Salt 

River Project, Arizona; Tonopah 

Irrigation District, Arizona. 

Project Description 

The BCP was authorized for 

construction by the Boulder Canyon 

Project Act. The Project Act provided 

for a dam to be built in the Black 

Canyon located on the Colorado River 

on the Arizona-Nevada 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 

Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 50319

electrical energy as a means of making 

the BCP a self-supporting 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 Study—Electric 

Service Base Charge and Rates 

Western prepares a PRS each FY to 

determine if revenues will be sufficient 

to repay, within the required time, all 

costs assigned to the BCP. Repayment 

criteria are based on law, policies 

including DOE Order RA 6120.2, and 

authorizing legislation. 

When compared to the existing BCP 

electric service base charge and rates 

under Rate Schedule BCP–F6 the 

proposed base charge and rates for BCP 

electric service reflect an overall 

composite rate decrease of 

approximately 5 percent on October 1, 

2005. The current composite rate under 

Rate Schedule BCP–F6 is 14.82 mills/

kWh. The proposed composite rate is 

14.05 mills/kWh. The following table 

compares the current and proposed 

electric service base charge and rates.

COMPARISON OF CURRENT AND PROPOSED BASE CHARGE AND RATES

Current Proposed Difference 

(change) 

Rate Schedule ............................................................................................................................. BCP–F6 BCP–F7

Base Charge ($) .......................................................................................................................... 57,654,683 57,465,018 (189,665) 

Energy (mills/kWh) ....................................................................................................................... 7.41 7.03 (0.38) 

Capacity ($/kW month) ................................................................................................................ 1.39 1.37 (0.02) 

Composite Rate (mills/kWh) ........................................................................................................ 14.82 14.05 (0.77) 

The provisional base charge and rates 

for electric service are a formula 

calculation based on the annual revenue 

requirement. There are no changes to 

the existing electric service formula 

under Rate Schedule BCP–F7. 

The proposed ratesetting formula 

would be effective October 1, 2005, 

through September 30, 2010, 

determining an annual calculation using 

the following formulas:

ARR = TE ¥ PY CO ¥ WSR ¥ OR 

BC = ARR 

ED = .5 * BC 

CD = .5 * BC 

FER = ED/ES 

FCR = CD/CS 

Certification of Rates

Western’s Administrator has certified 

that the interim base charge and rates 

for BCP electric service are the lowest 

possible consistent with sound business 

principles. The provisional rates were 

developed following administrative 

policies and applicable laws. 

BCP Electric Service Base Charge and 

Rates Discussion 

According to Reclamation Law, 

Western must establish power rates 

sufficient to recover operation, 

maintenance, purchased power 

expenses, interest expenses, and 

repayment of power investment and 

irrigation aid. 

The BCP electric service base charge 

and rates are decreasing in FY 2006 due 

to the carryover of $3.4 million of post 

September 11, 2001, security costs that 

were incorporated into the BCP rates for 

FY 2005 prior to direction from 

Congress for Reclamation not to begin 

the reimbursement process until 

instructed to do so by Congress. 

Although total annual expenses are 

increasing from FY 2005 to FY 2006, the 

$3.4 million of non-reimbursable 

security costs is being projected as FY 

2005 year end carryover. The result is 

an overall decrease of approximately 

$190,000 in the base charge since the 

existing base charge and rates were 

established. 

The existing base charge and rates for 

BCP electric service under Rate 

Schedule BCP–F6 expire September 30, 

2005. Effective October 1, 2005, Rate 

Schedule BCP–F6 will be superseded by 

the new base charge and rates in Rate 

Schedule BCP–F7. The provisional rates 

for BCP electric service consist of a base 

charge, a capacity rate, and an energy 

rate. The provisional base charge is 

$57,465,018, the provisional capacity 

rate is $1.37/kWmonth, and the 

provisional energy rate is 7.03 mills/

kWh. 

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 table provides 

a summary of the revenues and 

expenses for the existing BCP electric 

service ratesetting formula and also the 

projected revenue and expenses for the 

5-year provisional rate approval period.

BCP REVENUES AND EXPENSES

[$1,000] 

Item 

Existing

(FY 2001–

2005) 

Proposed

(FY 2006–

2010) 

Difference 

Total Revenues ............................................................................................................................ $317,809 $390,324 $72,515

Revenue Distribution: 

O&M ...................................................................................................................................... 141,448 197,292 55,844

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

Other Expense ...................................................................................................................... 42,490 42,998 508

Uprating Payments ............................................................................................................... 55,751 65,614 9,863

Replacements ....................................................................................................................... 9,456 21,044 11,588

Interest Expense ................................................................................................................... 57,792 55,230 (2,562) 

Investment Repayment ......................................................................................................... 9,811 8,583 (1,228) 

50320 Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 

BCP REVENUES AND EXPENSES—Continued

[$1,000] 

Item 

Existing

(FY 2001–

2005) 

Proposed

(FY 2006–

2010) 

Difference 

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

Prior Year Carryover ............................................................................................................ (1,939) (3,437) (1,498) 

Total Revenue Distribution .......................................................................................................... 317,809 390,324 72,515

Basis for Rate Development 

The existing base charge and rates for 

BCP electric service in Rate Schedule 

BCP–F6 expire September 30, 2005. The 

existing base charge and rates are in 

excess of the amount needed to pay all 

annual costs, including interest 

expense, and repayment of investment 

within the allowable period. The 

adjusted base charge and rates reflect 

increases in the overall O&M program 

costs, increased uprating program 

payments, and replacement costs. 

However, since $3.4 million for post 

September 11, 2001, security costs are 

being returned to the contractors in the 

form of a carryover in FY 2005, the 

result is a decrease in the FY 2006 Base 

Charge. The provisional base charge and 

rates will provide sufficient revenue to 

pay all annual costs, including interest 

expense, and repayment of power 

investment within the allowable 

periods. The provisional base charge 

and rates will take effect on October 1, 

2005, to correspond with the start of the 

Federal FY, and will remain in effect 

through September 30, 2006. 

Comments 

The comments and responses 

regarding the electric service base 

charge and rates, paraphrased for 

brevity when not affecting the meaning 

of the statement(s), are discussed below. 

Direct quotes from comment letters are 

used for clarification where necessary. 

The issues discussed are (1) post 

September 11, 2001, security costs, (2) 

visitor center costs, (3) O&M costs, and 

(4) rate adjustment. 

1. Post September 11, 2001, Security 

Costs 

A. Comment: Contractors request 

additional clarification regarding the 

use of funds. Under the FY 2005 Base 

Charge $3.9 million is being collected 

for security costs. Since the FY 2005 

security costs have been deemed nonreimbursable by Congress, and a 

decision was made at the October 2004 

Engineering & Operating Committee 

meeting that $500,000 of the $3.9 

million would be used in FY 2005 to 

cover the stainless steel wicket gates, 

the Contractors’ understanding is that 

the remaining $3.4 million would not be 

expended and would be returned in the 

form of a carryover. The Contractors 

request assurance that the $3.4 million 

be credited back to them and the 

projected $4.3 million for security costs 

for FY 2006 will not be included in the 

FY 2006 Base Charge.

Response: It is the opinion of the 

Bureau of Reclamation, Lower Colorado 

Dams Area office, that the Area Manager 

has legal authority, under the terms of 

the Boulder Canyon Project 

Implementation Agreement, and with 

customer review and concurrence to reprogram funds collected for necessary 

maintenance expenditures. The 

remaining $3.4 million collected for 

security costs in FY 2005 has been 

shown as carryover in FY 2005 which 

will reduce the FY 2006 revenue 

requirement. Based on information 

presented in Reclamation’s recent report 

to Congress concerning the 

Reimbursement of Security Costs on 

Reclamation’s Facilities, security 

funding for FY 2006 will remain in the 

base charge until otherwise directed by 

Congress. 

B. Comment: The Contractors request 

that detailed data for the security costs 

be separated out in the next 10-year 

operating plan to show the reimbursable 

and non-reimbursable costs for past 

years beginning in FY 2001 and 

projections into the future. 

Response: The FY 2007 10-Year 

Operating Plan will include a 

spreadsheet detailing reimbursable and 

non-reimbursable security costs from FY 

2001 through FY 2016. 

C. Comment: An interested party 

pointed out that we are operating under 

the Omnibus Bill with direct 

instructions from Congress that for FY 

2005, and future projections, security 

costs are deemed non-reimbursable and 

until Congress directs otherwise, this 

rate process should proceed on the basis 

of the current Congressional 

instructions. 

Response: Reclamation is not ignoring 

the Omnibus Bill. There are two 

ongoing processes involved in the BCP. 

The rate process for FY 2005 went into 

effect October 1, 2004. All information 

available at the time the rate was being 

developed indicated that the security 

costs for FY 2005 and out-years would 

be reimbursable. The Omnibus Bill was 

not passed until December 2004 when 

the rate process for FY 2005 was 

completed. In addition to directing 

Reclamation to stay the reimbursement 

process, Congress directed Reclamation 

to provide a report by May 1, 2005, to 

assist Congress in breaking out planned 

reimbursable and non-reimbursable 

security costs by project and region. 

Reclamation has submitted the report. It 

is currently being reviewed in 

Washington, D.C. Reclamation will 

incorporate Congress’s findings on the 

report into its decisions for the FY 2006 

Base Charge. If the post September 11, 

2001, security costs are deemed 

reimbursable, Reclamation will include 

the costs. If these costs are deemed to be 

non-reimbursable and Reclamation does 

not receive the information in time to 

remove them from the FY 2006 Base 

Charge, Reclamation will not expend 

the funds and they will be returned to 

the Contractors. 

D. Comment: A customer stated it is 

not appropriate to put the burden of the 

national post September 11, 2001 

security costs on the power customers 

and requested that these costs be 

removed from the FY 2006 annual Base 

Charge. The customer also shared that 

protecting Hoover Dam should be a 

responsibility of the Federal 

government, as is protecting any other 

national critical infrastructure. 

Response: The Reimbursement of 

Security Costs on Reclamation’s 

Facilities report to Congress states:

Reclamation considers the ongoing costs of 

guards and patrol to clearly fall within the 

definition of project O&M costs. Therefore, 

those costs are subject to reimbursement 

based on project cost allocations. Like 

equipment maintenance, routine facility 

security activities such as guards and patrol 

are critical in ensuring the uninterrupted 

supply of Reclamation water and power. 

Beginning in FY 2006, Reclamation’s 

budget assumes that increased annual costs 

associated with facility guard and patrol 

activities are project O&M costs, which will 

Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 50321

be allocated to project purposes and subject 

to reimbursement.

2. Visitor Center Costs 

A. Comment: The Contractors 

expressed a concern with new costs 

being passed through to the Contractors 

for potential future concepts for 

enhancing tourism at Hoover. 

Response: Other than the new exhibit 

presented in previous 10-year plans, no 

other enhancements have been 

approved. Future concepts for 

enhancing tourism are considered on a 

near continuous basis to ensure that the 

visitor facility covers its O&M costs 

entirely and also contributes an 

appropriate share to the visitor center 

debt service. Any decisions that would 

require increasing costs to the power 

contractors would be presented in 

future ten year plans and discussed 

thoroughly before implementation. 

B. Comment: The Contractors 

encourage Western and Reclamation to 

continue to seek efficiencies in O&M 

and cost containment with the ultimate 

goal that the visitor center operates in a 

self-sufficient mode. Contractors remain 

concerned with the continuing 

imbalance between visitor center costs 

and revenues since the September 11, 

2001 attack and encourage Reclamation 

to acquire sources of funding other than 

the BCP Contractors. 

Response: Both Western and 

Reclamation have expended significant 

effort on keeping costs down and 

increasing efficiency and productivity, 

and will continue their ongoing effort to 

manage costs. One of the goals of the 

visitor center is to operate in a selfsufficient mode as identified in the 

Boulder Canyon Project Implementation 

Plan. Reclamation and Western, along 

with the power contractors, are 

committed to working toward achieving 

that goal. Cost containment, operating 

efficiency, and revenue generation are 

all mechanisms employed to achieve the 

goal. 

C. Comment: The Contractors believe 

that Congress never intended that the 

visitor center facility would result in 

such a significant drain on resources. 

They suggested that if the facility could 

not be operated on a businesslike basis, 

especially since September 11, 2001, 

that perhaps its operations should be 

turned over to a private contractor who 

will be responsible for generating 

sufficient revenues to make the 

necessary contributions to repayment of 

the facility. When the O&M costs are 

greater than the revenue requirement to 

contribute to capital repayment as 

promised by Reclamation, the 

Contractors believe they would be better 

off paying the entire repayment burden 

and avoiding the additional drain of 

operating the facility in its current 

fashion. 

Response: Reclamation agreed to use 

its best efforts to generate enough 

revenue from the visitor facilities to 

cover approximately 50 percent of the 

capital cost. Reclamation remains 

committed to that goal. 

3. O&M Costs 

A. Comment: A Contractor 

encouraged Reclamation to take a 

second look at its FY 2006 O&M 

expenses and reduce or defer costs such 

as materials and supplies from FY 2005 

to FY 2006 where proper management 

of purchases can lead to these cost 

increases being lowered rather than 

raised. The Contractor reminded 

Reclamation of a pledge it made a few 

years ago to the Contractors that it 

would limit annual cost increases to 3 

percent or the rate of inflation if higher. 

Response: Over the past few years, 

Reclamation has improved unit 

availability and dramatically reduced 

critical items identified in the 

comprehensive power review. Costs to 

accomplish these items exceeded the 

rate of inflation in 2 of the past 5 years 

and, overall, the simple average of the 

annual percentage changes is 3.22 

percent. The average percentage change, 

considering the compound nature of 

inflation and indexing, suggests an 

average rate of increase of about 3.1 

percent. Reclamation anticipates that 

future year increases can be held to no 

more than the rate of inflation.

Fiscal year Actual O&M

program 1

Percent of

increase from 

prior year 

2001 ............................................................................................................................................................. $34,579 

2002 ............................................................................................................................................................. $33,567 (2.9%) 

2003 ............................................................................................................................................................. $36,507 8.8% 

2004 ............................................................................................................................................................. $37,398 2.4% 

Estimated O&M 

Program 1

2005 ............................................................................................................................................................. $39,962 6.9% 

2006 ............................................................................................................................................................. $40,324 0.9% 

Average Percent 

of Change 

3.22% 

1 Includes Operations, Maintenance, Post Civil Service Retirement, Administrative & General Expenses, Extraordinary Operations and Maintenance, Replacements, and Visitor Services (Security costs are not included). 

4. Rate Adjustment 

A. Comment: A Contractor asks 

Western to confirm a rate increase 

would not be necessary for FY 2006 

since the FY 2005 post September 11, 

2001, security costs have been deemed 

non-reimbursable.

Response: The rate adjustment 

increase is no longer necessary. 

Although total annual expenses 

increased from FY 2005 to FY 2006, the 

carryover of the $3.4 million in security 

costs in FY 2005 resulted in a decrease 

for the FY 2006 Base Charge and rates. 

Availability of Information 

Information about this rate 

adjustment, including power repayment 

studies, comments, letters, 

memorandums, and other supporting 

material made or kept by Western used 

to develop the provisional base charge 

and rates, is available for public review 

in the Desert Southwest Customer 

Service Regional Office, Western Area 

Power Administration, 615 South 43rd 

Avenue, Phoenix, Arizona. 

Regulatory Procedure Requirements 

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 

50322 Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 

a rulemaking of particular applicability 

involving rates or services applicable to 

public property. 

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 preparing 

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. 

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. 

Submission to the Federal Energy 

Regulatory Commission 

The interim ratesetting formula and 

FY 2006 Base Charge and rates herein 

confirmed, approved, and placed into 

effect, together with supporting 

documents, will be submitted to the 

Commission for confirmation and final 

approval. 

Order 

In view of the foregoing and under the 

authority delegated to me, I confirm and 

approve on an interim basis, effective 

October 1, 2005, Rate Schedule BCP–F7, 

for the Boulder Canyon Project of the 

Western Area Power Administration. 

The rate schedule shall remain in effect 

on an interim basis, pending the 

Commission’s confirmation and 

approval of it or substitute rates on a 

final basis through September 30, 2010.

Dated: August 11, 2005.

Clay Sell,

Deputy Secretary.

Rate Schedule BCP–F7 (Supersedes 

Schedule BCP–F6) 

United States Department of Energy, 

Western Area Power Administration 

Boulder Canyon Project, Arizona, 

Nevada, Southern California; Schedule 

of Rates for Electric Service 

Effective: The first day of the first full 

billing period beginning on or after 

October 1, 2005, and remaining in effect 

through September 30, 2010, 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, threephase, 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. 05–17000 Filed 8–25–05; 8:45 am] 

BILLING CODE 6450–01–P

ENVIRONMENTAL PROTECTION 

AGENCY 

[AMS–FRL–7961–1] 

California State Motor Vehicle 

Pollution Control Standards; Waiver of 

Federal Preemption; Notice of Decision

AGENCY: Environmental Protection 

Agency (EPA).

ACTION: Notice Regarding Waiver of 

Federal Preemption. 

SUMMARY: EPA today, pursuant to 

section 209(b) of the Clean Air Act 

(Act), 42 U.S.C. 7543(b), is granting 

California its request for a waiver of 

federal preemption for its heavy-duty 

diesel regulations for 2007 and 

subsequent model year vehicles and 

engines (2007 California Heavy Duty 

Diesel Engine Standards) and related 

test procedures including the not-toexceed (NTE) and supplemental steadystate tests (supplemental test 

procedures) to determine compliance 

with applicable standards. By letter 

dated July 16, 2004, the California Air 

Resources Board (CARB) requested that 

EPA grant California a waiver of federal 

preemption for its 2007 California 

Heavy Duty Diesel Engine Standards, 

which primarily align California’s 

standards and test procedures with the 

federal standards and test procedures 

for 2007 and subsequent model year 

vehicles and engines.

ADDRESSES: The Agency’s Decision 

Document, containing an explanation of 

the Assistant Administrator’s decision, 

as well as all documents relied upon in 

making that decision, including those 

submitted to EPA by CARB, are 

available at the EPA’s Air and Radiation 

Docket and Information Center (Air 

Docket). Materials relevant to this 

decision are contained in Docket No. 

OAR–2004–0132. The docket is located