[Federal Register Volume 61, Number 100 (Wednesday, May 22, 1996)]
[Notices]
[Pages 25664-25665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12827]



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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) is announcing 
the Fiscal Year 1996 annual rate adjustment for Rate Year 1997 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 on April 19, 1996. The 
existing rate schedule was placed into effect on November 1, 1995. The 
power repayment spreadsheet study indicates that the proposed Base 
Charge 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, 1996.

DATES: The consultation and comment period will begin with publication 
of this notice in the Federal Register and will end not less than 90 
days later, or August 22, 1996, whichever occurs later. A public 
information forum will be held at 10 a.m. on June 13, 1996, at 
Western's Desert Southwest Customer Service Regional office, 615 South 
43rd Avenue, Phoenix, Arizona. A public comment forum at which Western 
will receive oral and written comments will be held at 10 a.m. on July 
15, 1996, at Western's Desert Southwest Customer Service Regional 
office. Written comments should be received by Western by the end of 
the consultation and comment period to be assured consideration and 
should be sent to the address below.

FOR FURTHER INFORMATION CONTACT:

Mr. J. Tyler Carlson, Regional Manager, Desert Southwest Customer 
Service Region, Western Area Power Administration, P.O. Box 6457, 
Phoenix, AZ 85005-6457, (602) 352-2453.
Mr. Anthony H. Montoya, Assistant Regional Manager, For Power 
Marketing, Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 352-2780.

SUPPLEMENTARY INFORMATION: The proposed Base Charge for BCP firm power 
is based on an Annual Revenue Requirement of $46,421,533. The Base 
Charge consists of an Energy Dollar of $23,968,846 and a Capacity 
Dollar of $22,452,687. The Forecast Energy Rate will be 5.46 mills/
kilowatthour (mills/kWh), Forecast Capacity Rate will be $0.96 per 
kilowatt per month ($/kW-mo).
    The existing BCP firm power Base Charge is based on an Annual 
Revenue Requirement of $45,196,960, consisting of an Energy Dollar of 
$23,460,351 and a Capacity Dollar of $21,736,609. The existing BCP 
forecast energy rate is 6.12 mills/kWh and forecast capacity rate is 
$0.93/kW-mo.
    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 Section 13.13 of the 
BCP Implementation Agreement.
    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

[[Page 25665]]

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 Boulder Canyon Project, 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 Boulder Canyon Project, Final Rule (10 CFR Part 904) published in 
the Federal Register at 51 FR 43124 on November 28, 1986, the 
Procedures for Public Participation in Power and Transmission Rate 
Adjustments and Extensions (10 CFR Part 903) 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 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 power 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.

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 Customer Service Regional office, 615 South 43rd 
Avenue, Phoenix, Arizona 85005.

DETERMINATION UNDER EXECUTIVE ORDER 12866: DOE has determined that this 
is not a significant regulatory action because it does not meet the 
criteria of Executive Order 12866, 58 FR 51735. 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.

ENVIRONMENTAL EVALUATION: 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 that this 
action is categorically excluded from the preparation of an 
environmental assessment or an environmental impact statement.

    Issued in Golden, Colorado, May 10, 1996.
J. M. Shafer,
Administrator.
[FR Doc. 96-12827 Filed 5-21-96; 8:45 am]
BILLING CODE 6450-01-P