Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 47945 

1WAPA–135 was approved by the Deputy 

Secretary of Energy on November 14, 2007 (72 FR 

¶ 64067), and confirmed and approved by FERC on 

a final basis on April 14, 2008, through December 

31, 2012, in Docket No. EF08–5031–000 (123 FERC 

¶ 62048). 

2Under the current Rate Schedules Western had 

the option of increasing the Drought Adder rate 

component by up to 2 mills/kWh outside of a 

formal public process, and only initiating the 

formal public process for the Base rate component 

increase and the incremental increase of the 

Drought Adder rate component above 2 mills/kWh. 

Instead, Western has opted to initiate the formal 

public process for this rate increase. 

DEPARTMENT OF ENERGY 

Western Area Power Administration 

Pick-Sloan Missouri Basin Program—

Eastern Division—Rate Order No. 

WAPA–140 

AGENCY: Western Area Power 

Administration, DOE. 

ACTION: Notice of Proposed Power Rates. 

SUMMARY: The Western Area Power 

Administration (Western) is proposing 

revised rates for Pick-Sloan Missouri 

Basin Program—Eastern Division (P–

SMBP—ED) firm electric and firm 

peaking power service. Current rates, 

under Rate Schedules P–SED–F9 and P–

SED–FP9, extend through December 31, 

2012, but are not sufficient to meet the 

P–SMBP—ED revenue requirements. 

The proposed rates will provide 

sufficient revenue to pay all annual 

costs, including interest expenses, and 

repay required investments within the 

allowable periods. Western will prepare 

and make available a brochure that 

provides detailed information on the 

proposed rates. The proposed rates, 

under Rate Schedules P–SED–F10 and 

P–SED–FP10, are scheduled to go into 

effect on January 1, 2009, and will 

remain in effect through December 31, 

2013, or until superseded. Publication 

of this Federal Register notice begins 

the formal process for the proposed rate 

adjustment. 

DATES: The consultation and comment 

period begins today and will end 

November 13, 2008. Western will 

present a detailed explanation of the 

proposed rates at public information 

forums. Public information forum dates 

are: 

1. September 9, 2008, 9 a.m. to 10:30 

a.m. MDT, Denver, CO. 

2. September 10, 2008, 8 a.m. to 9:30 

a.m. CDT, Sioux Falls, SD. 

Western will accept oral and written 

comments at public comment forums. 

Public comment forums will be held on 

the following dates: 

1. September 9, 2008, 11:30 a.m. to 

12:30 p.m. MDT, Denver, CO. 

2. September 10, 2008, 10:30 a.m. to 

12 p.m. CDT, Sioux Falls, SD. 

Western will accept written 

comments any time during the 

consultation and comment period. 

ADDRESSES: Written comments and/or 

requests to be informed of Federal 

Energy Regulatory Commission (FERC) 

actions concerning the rates submitted 

by Western to FERC for approval should 

be sent to Mr. Robert J. Harris, Regional 

Manager, Upper Great Plains Region, 

Western Area Power Administration, 

2900 4th Avenue North, Billings, MT 

59101–1266, or e-mail at 

ugpfirmrate@wapa.gov. Western will 

post information about the rate process 

on its Web site at http://www.wapa.gov/ 

ugp/rates/2009firmrateadjust. Western 

will post comments received via letter 

and e-mail to its Web site after the close 

of the comment period. Western must 

receive written comments by the end of 

the consultation and comment period to 

ensure they are considered in Western’s 

decision process. 

Public information and comment 

forum locations are: 

1. Denver—Ramada Plaza Hotel, 10 

East 120th Avenue, Northglenn, CO. 

2. Sioux Falls—Holiday Inn, 100 West 

8th Street, Sioux Falls, SD. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Linda Cady-Hoffman, Rates Manager, 

Upper Great Plains Region, Western 

Area Power Administration, 2900 4th 

Avenue North, Billings, MT 59101–

1266, telephone (406) 247–7439, e-mail 

cady@wapa.gov. 

SUPPLEMENTARY INFORMATION: The 

proposed rates for P–SMBP—ED firm 

electric and firm peaking service are 

designed to recover an annual revenue 

requirement that includes investment 

repayment, interest, purchase power, 

operation and maintenance, and other 

expenses. 

Rate Schedules P–SED–F9 and P–

SED–FP9 for P–SMBP—ED firm electric 

and firm peaking service, respectively, 

were approved for a 5-year period 

beginning on January 1, 2008, and 

ending December 31, 2012.1 Under 

current Rate Schedule P–SED–F9 

effective January 1, 2008, the composite 

rate is 24.49 mills per kilowatthour 

(mills/kWh), the firm energy rate is 

13.99 mills/kWh, and the firm capacity 

rate is $5.65 per kilowattmonth 

(kWmonth). The projected revenue 

requirement for firm electric service is 

allocated equally between capacity and 

energy. Under current Rate Schedule P–

SED–FP9 effective January 1, 2008, the 

firm peaking capacity rate is $5.10/ 

kWmonth. These Rate Schedules are 

formula based, providing for an up to 2 

mills/kWh increase in the Drought 

Adder rate component. 

This proposed rate adjustment reflects 

a rate increase based on the P–SMBP—

ED Final Fiscal Year 2007 Power 

Repayment Study (PRS). The PRS sets 

the total annual P–SMBP—ED revenue 

requirement for 2009 for firm electric 

and firm peaking power service at 

$282.6 million, or a 19.8 percent 

increase for a composite rate of 29.34 

mills/kWh. The current rates, including 

a 2 mills/kWh increase provided for 

under the Drought Adder formula rate 

component, are not sufficient to meet 

the P–SMBP—ED revenue requirements. 

Given the need for a Base rate 

component increase and the size of the 

Drought Adder rate component increase, 

Western is required to initiate a formal 

public process.2 Western has prepared 

rate schedules for firm electric service 

(P–SED–F10) and firm peaking service 

(P–SED–FP10) for consideration and 

comment during this public process. A 

comparison of the existing revenue 

requirement and rates, and the proposed 

revenue requirement and rates under P–

SED–F10 and P–SED–FP10 are listed in 

Table 1. 

TABLE 1—PROPOSED P–SMBP–ED FIRM ELECTRIC AND FIRM PEAKING POWER SERVICE REVENUE REQUIREMENT AND

RATES

Firm electric service Existing rates as of 

2008 

Proposed rates 

(Jan. 1, 2009) 2

Percent 

change from 

existing 2008 

to proposed 

2009 

Firm and Firm Peaking Revenue Requirement .......................................................... $235.9 million ......... $282.6 million ........ 19.8 

Composite Rate .......................................................................................................... 24.49 mills/kWh ..... 29.34 mills/kWh ..... 19.8 

Firm Capacity Rate ..................................................................................................... $5.65/kWmonth ...... $6.80/kWmonth ...... 20.4 

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47946 Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 

TABLE 1—PROPOSED P–SMBP–ED FIRM ELECTRIC AND FIRM PEAKING POWER SERVICE REVENUE REQUIREMENT AND

RATES—Continued 

Firm electric service Existing rates as of 

2008 

Proposed rates 

(Jan. 1, 2009) 2

Percent 

change from 

existing 2008 

to proposed 

2009 

Firm Energy Rate ........................................................................................................ 13.99 mills/kWh ..... 16.71 mills/kWh ..... 19.4 

Firm Peaking Capacity Rate ....................................................................................... $5.10/kWmonth ...... $6.20/kWmonth ...... 21.6 

Firm Peaking Energy Rate 1 ....................................................................................... 13.99 mills/kWh ..... 16.71 mills/kWh ..... 19.4 

1Firm peaking energy is normally returned. This will be assessed in the event firm peaking energy is not returned. 

2The proposed rates are subject to adjustment prior to publication in the final Notice of Order Concerning Power Rates. Adjustments, if any, 

would be based on revisions to the Drought Adder rate component due to changes in hydrological conditions. 

Under Rate Schedule P–SED–F10, 

Western is proposing to continue to 

identify its firm electric service revenue 

requirement using Base and Drought 

Adder rate components and provide up 

to a 2 mills/kWh increase in the Drought 

Adder rate component. The Base rate 

component is a revenue requirement 

that includes annual operation and 

maintenance expenses, investment 

repayment and associated interest, 

normal timing power purchases, and 

transmission costs. Western’s normal 

timing power purchases are purchases 

due to operational constraints (e.g., 

management of endangered species 

habitat, water quality, navigation, etc.) 

and are not associated with the current 

drought. 

The Drought Adder rate component is 

a formula-based revenue requirement 

that includes costs attributable to the 

past and present drought conditions 

within the Pick-Sloan Program. The 

Drought Adder rate component includes 

costs associated with future non-timing 

purchases of additional power to firm 

obligations not covered with available 

system generation due to the drought, 

previously incurred deficits due to 

purchased power debt that resulted 

from non-timing power purchases made 

during this drought, and the interest 

associated with the previously incurred 

and future drought debt. The Drought 

Adder rate component is designed to 

repay Western’s drought debt within 10 

years from the time the debt was 

incurred, using balloon-payment 

methodology. For example, the drought 

debt incurred by Western in 2007 will 

be repaid by 2017. 

The annual revenue requirement 

calculation will continue to be 

summarized by the following formula: 

Annual Revenue Requirement = Base 

Revenue Requirement + Drought Adder 

Revenue Requirement. Under this 

proposal, effective January 1, 2009, the 

P–SMBP–ED annual revenue 

requirement equals $293.7 million and 

is comprised of a Base revenue 

requirement of $163.5 million plus a 

Drought Adder revenue requirement of 

$130.2 million. Both the Base and 

Drought Adder rate components recover 

portions of the firm power revenue 

requirement, firm peaking power, and 

associated five percent discount revenue 

necessary to equal the P–SMBP–ED 

revenue requirement. A comparison of 

the current and proposed rate 

components are listed in Table 2. 

TABLE 2—SUMMARY OF P-SMBP—ED RATE COMPONENTS

Existing rates as of 2008 Proposed rates (effective January 1, 

2009) 2

Base rate 

component 

Drought 

adder rate 

component 

Total Base rate 

component 

Drought 

adder rate 

component 

Total 

Firm Capacity Rate (/kWmonth) ...................................... $3.65 $2.00 $5.65 $3.80 $3.00 $6.80 

Firm Energy Rate (mills/kWh) .......................................... 8.93 5.06 13.99 9.27 7.44 16.71 

Firm Peaking Capacity Rate (/kWmonth) ........................ $3.25 $1.85 $5.10 $3.40 $2.80 $6.20 

Firm Peaking Energy Rate (mills/kWh) 1 ......................... 8.93 5.06 13.99 9.27 7.44 16.71 

1Firm peaking energy is normally returned. This will be assessed in the event firm peaking energy is not returned. 

2The proposed rates are subject to adjustment prior to publication in the final Notice of Order Concerning Power Rates. Adjustments, if any, 

would be based on revisions to the Drought Adder rate component due to changes in hydrological conditions. 

As set forth in Table 2 above, under 

proposed Rate Schedule P–SED–FP10, 

the firm peaking capacity rate will 

increase to $6.20/kWmonth, or a 21.6 

percent increase for the proposed 

January 1, 2009, rate adjustment. 

Peaking energy is either returned to 

Western or paid for in accordance with 

the terms of the contract between 

Western and the peaking power 

customer. 

Continuing to identify the firm 

electric service revenue requirement 

using Base and Drought Adder rate 

components will assist Western in the 

presentation of the impacts of the 

drought within the Pick-Sloan Program, 

demonstrate repayment of the drought 

related costs in the PRS, and allow 

Western to be more responsive to 

changes in drought related expenses. 

Western will continue to charge and bill 

its customers firm electric service rates 

for energy and capacity, which are the 

sum of the Base and Drought Adder rate 

components. 

Western reviews its firm electric 

service rates annually. Western will 

review the Base rate component after 

the annual PRS is completed, generally 

in the first quarter of the calendar year. 

If an adjustment to the Base rate 

component is necessary, Western will 

initiate a public process pursuant to 10 

CFR part 903 prior to making an 

adjustment. 

In accordance with the original 

implementation of the Drought Adder 

rate component, Western will continue 

to review the Drought Adder rate 

component each September to 

determine if drought costs differ from 

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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 47947 

3Western’s Continuing Fund (Emergency Fund) 

Policy can be found at http://www.wapa.gov/ 

powerm/pdf/repaypolicy.pdf. 

those projected in the PRS, and, if so, 

whether an adjustment, either 

incremental or decremental, to the 

Drought Adder rate component is 

necessary. Western will notify 

customers by letter each October of the 

planned incremental or decremental 

adjustment and implement the 

adjustment in the January billing cycle. 

Although decremental adjustments to 

the Drought Adder rate component will 

occur as drought costs are repaid, the 

adjustments cannot result in a negative 

Drought Adder rate component. To give 

customers advance notice, Western will 

conduct a preliminary review of the 

Drought Adder rate component in early 

summer and notify customers by letter 

of the estimated change to the Drought 

Adder rate component for the following 

January, with the final Drought Adder 

rate component adjustment verified 

with notification in the October letter to 

the customers. Implementing the 

Drought Adder rate component 

adjustment on January 1 of each year 

will help keep the drought deficits from 

escalating as quickly, will lower the 

interest expense due to drought deficits, 

will demonstrate responsible deficit 

management, and will provide prompt 

drought deficit repayments. 

As a part of the current and proposed 

rate schedules, Western provides for a 

formula-based adjustment of the 

Drought Adder rate component of up to 

2 mills/kWh. The 2 mills/kWh cap is 

intended to place a limit on the amount 

the Drought Adder formula can be 

adjusted relative to associated drought 

costs without having to go through a 

public process to recover costs 

attributable to the Drought Adder 

formula rate for any one-year cycle. 

During informal discussions with its 

customers prior to the commencement 

of this rate adjustment process, Western 

discussed the possibility of 

implementing a two-step rate 

adjustment for the Base rate component 

to address operational and maintenance 

costs as well as normal inflationary 

costs that would be entered into the PRS 

from the FY 2010 work plans. Western 

has reevaluated the benefits of a twostep rate adjustment and concluded 

with the unpredictability of the 

hydrological conditions, rising fuel 

costs and proposed changes in the 

electric transmission industry, it is more 

prudent to forego a two-step rate 

adjustment and continue the annual 

customer consultations and possible 

annual rate adjustments. Therefore, 

Western is not proposing a two-step rate 

adjustment in this public process. 

Due to continuing below normal 

hydropower generation in the P–

SMBP—ED, Western may need to use 

the Continuing Fund (Emergency Fund) 

to pay for unanticipated purchase power 

and wheeling expenses necessary to 

meet its contractual obligations for the 

sale and delivery of power to its 

customers. Should Western use this 

funding mechanism, Western will 

replenish the Continuing Fund 

(Emergency Fund) in accordance with 

law and Western’s associated repayment 

policy, dated March 15, 2007.3

Legal Authority 

Since the proposed rates constitute a 

major rate adjustment as defined by 10 

CFR part 903, Western will hold public 

information forums and public 

comment forums. Western will review 

all timely public comments and make 

amendments or adjustments to the 

proposal as appropriate. Proposed rates 

will be forwarded to the Deputy 

Secretary of Energy for approval on an 

interim basis. 

Western is establishing firm electric 

service and peaking rates for P–SMBP—

ED under the Department of Energy 

Organization Act (42 U.S.C. 7152); 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)); section 5 of the Flood 

Control Act of 1944 (16 U.S.C. 825s); 

and other acts that specifically apply to 

the projects 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 FERC. 

Existing Department of Energy (DOE) 

procedures for public participation in 

power rate adjustments (10 CFR part 

903) were published on September 18, 

1985. 

Availability of Information 

All brochures, studies, comments, 

letters, memorandums, or other 

documents that Western initiates or uses 

to develop the proposed rates are 

available for inspection and copying at 

the Upper Great Plains Regional Office, 

located at 2900 4th Avenue North, 

Billings, Montana. Many of these 

documents and supporting information 

are also available on Western’s Web site 

under the ‘‘2009 Firm Rate Adjustment’’

section located at http://www.wapa.gov/ 

ugp/rates/2009firmrateadjust. 

Ratemaking Procedure Requirements 

Environmental Compliance 

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 is in the process of 

determining whether an environmental 

assessment or an environmental impact 

statement should be prepared or if this 

action can be categorically excluded 

from those requirements. 

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. 

Dated: July 31, 2008. 

Timothy J. Meeks, 

Administrator. 

[FR Doc. E8–18953 Filed 8–14–08; 8:45 am] 

BILLING CODE 6450–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

[ER–FRL–8584–7] 

Environmental Impact Statements and 

Regulations; Availability of EPA 

Comments 

Availability of EPA comments 

prepared pursuant to the Environmental 

Review Process (ERP), under section 

309 of the Clean Air Act and Section 

102(2)(c) of the National Environmental 

Policy Act as amended. Requests for 

copies of EPA comments can be directed 

to the Office of Federal Activities at 

202–564–7146. An explanation of the 

ratings assigned to draft environmental 

impact statements (EISs) was published 

in FR dated April 6, 2008 (73 FR 19833). 

Draft EISs 

EIS No. 20080164, ERP No. D–NRC–

D06005–PA, GENERIC—License 

Renewal of Nuclear Plants, 

Supplement 35 to NUREG–1437, 

Regarding Susquehanna Steam 

Electric Station, Units 1 and 2, Issuing 

Nuclear Power Plant Operating 

Licenses for a 20–Year Period, PA. 

Summary: EPA expressed 

environmental concerns about pollution 

prevention issues and impacts to 

mstockstill on PROD1PC66 with NOTICES