[Federal Register Volume 61, Number 128 (Tuesday, July 2, 1996)]
[Notices]
[Pages 34432-34433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16846]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY
Southwestern Power Administration


Integrated System Power Rates--Proposed Extension

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of public review and comment.

-----------------------------------------------------------------------

SUMMARY: The Current Integrated System rates were approved by the 
Federal Energy Regulatory Commission (FERC) on September 18, 1991, 
Docket No. EF91-4011-000. These rates were effective October 1, 1990, 
through September 30, 1994. These rates were extended on an interim 
basis by the Deputy Secretary of Energy through September 30, 1996. The 
Administrator, Southwestern, has prepared Current and Revised 1996 
Power Repayment Studies for the Integrated System which show the need 
for a minor rate adjustment of $1,239,868 (1.3 percent increase) 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 plus-or-minus 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 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, 1997.

DATES: Written comments are due on or before July 17, 1996.

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: George C. Grisaffe, Assistant 
Administrator, Office of Administration and Rates, Southwestern Power 
Administration, Department of Energy, PO Box 1619, Tulsa, Oklahoma 
74101, (918) 595-6628.

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 1996 Current Power Repayment 
Study (PRS) using existing Integrated System rate schedules. The PRS 
shows the cumulative amortization through FY 1995 at $355,572,353 on a 
total investment of $982,272,106. The FY 1996 Revised PRS indicates the 
need for an increase in annual revenues of $1,239,868, or 1.3 percent, 
over and above 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 Integrated System's FY 1995 
(last year's) PRS concluded that the annual revenues needed to be 
increased by 1.1 percent. At that time, it was determined prudent to 
defer the increase in accordance with the established threshold and 
extend the rates on an interim basis for one year. It once again seems 
prudent to defer this rate adjustment of 1.3 percent, or $1,239,868 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 1997 (next year's) PRS.
    On September 18, 1991, the current rate schedules for the 
Integrated System were confirmed and approved by the FERC on a final 
basis for a period that ended on September 30, 1994. 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.
    On September 19, 1994, and August 8, 1995, the Deputy Secretary 
approved extensions of the Integrated System power rates on an interim 
basis for the periods October 1, 1994, through September 30, 1995, and 
October 1, 1995, through September 30, 1996. 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 again extend the current Integrated System rate schedules 
for the one-year period beginning October 1,

[[Page 34433]]

1996, and extending through September 30, 1997.
    Opportunity is presented for customers and interested parties to 
receive copies of the study data for the Integrated System. If you 
desire a copy of the Repayment Study Data Package for the Integrated 
System, please submit your request to: Mr. George Grisaffe, Assistant 
Administrator, Office of Administration and Rates, PO Box 1619, Tulsa, 
OK 74101, or call (918) 595-6628.
    Following review of the written comments, the Administrator will 
submit the rate extension proposal for the Integrated System to the 
Deputy Secretary of Energy for confirmation and approval.

    Issued in Tulsa, Oklahoma, this 21st day of June, 1996.
Michael A. Deihl,
Administrator.
[FR Doc. 96-16846 Filed 7-1-96; 8:45 am]
BILLING CODE 6450-01-P