Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Notices 14935

requested for March 10, 1995. An

expedited review is requested in order

to implement this high priority

program as soon as possible.

[FR Doc. 95–6835 Filed 3–20–95; 8:45 am]

BILLING CODE 4000–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

[Docket No. RP91–203–000, et al. (Phase

II)]

Tennessee Gas Pipeline Co.; Notice of

Informal Settlement Conference

March 16, 1995.

Take notice that an informal

settlement conference will be convened

in this proceeding on Wednesday,

March 22, 1995, at 2:00 p.m., at the

offices of the Federal Energy Regulatory

Commission, 810 First Street NE.,

Washington, DC, for the purpose of

exploring the possible settlement of the

above-referenced docket.

Any party, as defined by 18 CFR

385.102(c), or any participant as defined

in 18 CFR 385.102(b), is invited to

attend. Persons wishing to become a

party must move to intervene and

receive intervenor status pursuant to the

Commission’s regulations (18 CFR

385.214).

For additional information, please

contact Dennis H. Melvin (202) 208–

0042 or Donald Williams (202) 208–

0743.

Lois D. Cashell,

Secretary.

[FR Doc. 95–6839 Filed 3–20–95; 8:45 am]

BILLING CODE 6717–01–M

Western Area Power Administration

Parker-Davis Project—Proposed Firm

Power Rate and Firm and Nonfirm

Transmission Service Rates

AGENCY: Western Area Power

Administration, DOE.

ACTION: Notice of proposed Parker-Davis

Project power rate and firm and nonfirm

transmission rate adjustments.

SUMMARY: The Western Area Power

Administration (Western) is initiating

rate adjustments for firm power and

firm and nonfirm transmission service

for the Parker-Davis Project (P–DP). The

power repayment study and other

analyses indicate that the revenues

required to pay all annual costs

(including interest expense), plus

repayment of required investment

within the allowable time period has

decreased by approximately $4.7

million since the last rate adjustment.

The proposed P–DP rates for firm power

and firm and nonfirm transmission

service are expected to become effective

October 1, 1995, and will supersede the

existing step two rates.

On January 6, 1994, the Deputy

Secretary of the Department of Energy

(DOE) approved the existing rates for

firm power and firm and nonfirm

transmission service on an interim

basis. The existing rates for firm power

and firm and nonfirm transmission

service were placed in effect on

February 1, 1994, and consisted of a

two-step rate adjustment. Step one of

the existing rates was effective February

1, 1994, through September 30, 1995,

and step two of the existing rates was to

be effective on October 1, 1995, through

January 31, 1999. The Federal Energy

Regulatory Commission (FERC)

confirmed and approved the rates on

October 14, 1994.

During this last P–DP rate adjustment

process (WAPA–55), the Arizona Power

Pooling Association, Inc.; Arizona

Power Authority; and the Arizona

Customer Group filed Motions To

Intervene and Protest FERC’s

confirmation and approval of the P–DP

rates described in Rate Order No.

WAPA–55. On August 19, 1994,

Western filed a Stipulation Agreement

signed by Western and these customers

in which the intervenors withdrew any

protest and Western agreed to reexamine the issues raised as well as

commence a new rate adjustment

proceeding during fiscal year 1995.

Western has re-examined the issues

raised during the last rate adjustment

process and has developed proposed P–

DP rates to supersede step two of the

existing rates which were to become

effective October 1, 1995, for firm power

and firm and nonfirm transmission

service. The major differences between

step two of the existing rates and the

proposed P–DP rates resulted from

several activities which involved

Western working in partnership with

the P–DP customers. First, future

revenue requirements were reduced by

controlling Western’s operation and

maintenance costs, and by decreasing

the construction and replacement

program through the Engineering Ten

Year Planning Process. The Engineering

Ten Year Planning Process includes a

decision making partnership among P–

DP customers and Western.

Second, Western revised the

allocation of costs between the power

and transmission customers which is

described in a Costs Apportionment

Study. A working group including

customer representatives, Western, and

the Bureau of Reclamation was formed

to analyze the issues and concerns

expressed by the customers during the

last rate adjustment process on how

costs were allocated between power and

transmission. The working group

derived a new methodology for

allocating these costs in a manner

deemed equitable. The new

methodology also meets the concerns of

both P–DP customers and Western.

Third, the working group developed a

revised rate design methodology using

the results from the Costs

Apportionment Study. The results from

the Costs Apportionment Study were

applied to total revenue requirements

instead of incremental revenue

requirements as was done to derive step

two of the existing rates.

When compared to step two of the

existing rates, the activities stated

resulted in a rate decrease for firm

power customers and a rate increase for

firm and nonfirm transmission

customers.

The proposed P–DP rates provide for

an energy rate of 1.91 mills per

kilowatthour (mills/kWh) and a capacity

rate of $2.06 per kilowatt/month (kW/

month) for a composite rate of 6.62

mills/kWh. The proposed P–DP rates for

transmission service provide for a firm

transmission service rate of $13.28 per

kilowatt/year (kW/year) and a nonfirm

transmission service rate of 2.53 mills/

kWh for P–DP and a firm transmission

service rate for the Salt Lake City Area/

Integrated Projects (SLCA/IP) of $6.64/

kW/season. The SLCA/IP transmission

service is for the SLCA/IP customers’

seasonal use of the P–DP transmission

system.

Table One compares step two of the

existing rates with the proposed P–DP

rates.