6958 Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices 

1Rate Order No. WAPA–119, 70 FR 51035, 

August 29, 2005, and the Commission confirmed 

and approved the rate schedule on May 4, 2006, 

under FERC Docket EF05–5161–000 (115 FERC ¶

62,137). Approval for Rate Schedule SNF–6 covered 

5 years beginning October 1, 2005, and ending on 

September 30, 2010. 

accordance with Rules 211 and 214 of 

the Commission’s Rules of Practice and 

Procedure (18 CFR 385.211, 385.214). 

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. Any person wishing to 

become a party must file a notice of 

intervention or motion to intervene, as 

appropriate. Such notices, motions, or 

protests must be filed on or before the 

comment date. Anyone filing a motion 

to intervene or protest must serve a copy 

of that document on the Applicant and 

all the parties in this proceeding. 

The Commission encourages 

electronic submission of protests and 

interventions in lieu of paper using the 

‘‘eFiling’’ link at http://www.ferc.gov. 

Persons unable to file electronically 

should submit an original and 14 copies 

of the protest or intervention to the 

Federal Energy Regulatory Commission, 

888 First Street, NE., Washington, DC 

20426. 

This filing is accessible on-line at 

http://www.ferc.gov, using the 

‘‘eLibrary’’ link and is 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 

docket(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. 

Comment Date: 5 pm Eastern Time on 

February 8, 2008. 

Kimberly D. Bose, 

Secretary. 

[FR Doc. E8–2111 Filed 2–5–08; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Western Area Power Administration 

Washoe Project—Rate Order No. 

WAPA–136 

AGENCY: Western Area Power 

Administration, DOE. 

ACTION: Notice of Proposed Non-Firm 

Power Formula Rate. 

SUMMARY: The Western Area Power 

Administration (Western) is proposing a 

minor rate adjustment for non-firm 

energy from the Stampede Powerplant 

(Stampede), of the Washoe Project, 

located in Sierra County, California. The 

current rate expires September 30, 2010. 

The proposed formula rate will provide 

sufficient revenue to repay all annual 

costs, including interest expense, and 

repayment of required investment 

within the allowable period. Western 

will prepare a brochure that provides 

detailed information on the formula rate 

to all interested parties. The proposed 

formula rate, under Rate Schedule SNF–

7, is scheduled to go into effect August 

1, 2008, and will remain in effect 

through July 31, 2013. Publication of 

this Federal Register notice begins the 

formal process for the proposed rate. 

DATES: The consultation and comment 

period begins today and will end March 

7, 2008. Western will accept written 

comments any time during the 

consultation and comment period. 

ADDRESSES: Send written comments to 

Ms. Sonja A. Anderson, Power 

Marketing Manager, Sierra Nevada 

Customer Service Region, Western Area 

Power Administration, 114 Parkshore 

Drive, Folsom, CA 95630–4710, e-mail 

sanderso@wapa.gov. Western will post 

information about the rate process on its 

Web site at http://www.wapa.gov/sn/ 

marketing/rates/. Western will post 

official comments received via letter, 

facsimile, 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. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Sean Sanderson, Rates Manager, Sierra 

Nevada Customer Service Region, 

Western Area Power Administration, 

114 Parkshore Drive, Folsom, CA 

95630–4710, (916) 353–4466, e-mail 

sander@wapa.gov. 

SUPPLEMENTARY INFORMATION: The 

proposed formula rate for Stampede’s 

non-firm power is designed to recover 

an annual revenue requirement that 

includes investment repayment, 

interest, purchase power (if applicable), 

reimbursable operation and 

maintenance (O&M) expenses, and other 

expenses. 

The Deputy Secretary of Energy 

approved Rate Schedule SNF–6, a nonfirm power formula rate on August 16, 

2005.1

The proposed formula rate for 

Stampede power is: 

Stampede Annual Transferred PRR = 

Stampede Annual PRR—Stampede 

Revenue. 

Where: Stampede Annual Transferred 

Power Revenue Requirement (PRR) = 

Stampede Annual PRR as identified 

as a cost transferred to the Central 

Valley Project (CVP). 

Stampede Annual PRR = the total PRR 

for Stampede required to repay all 

annual costs, including interest, and 

the investment within the allowable 

period. 

Stampede Revenue = Revenue from 

applying the Stampede Energy 

Exchange Account (SEEA) rate to 

project generation. 

To serve project use loads and 

effectively market the energy from 

Stampede, Western has contracted with 

a third party (Contractor) that provides 

for an SEEA. The SEEA is an annual 

energy exchange account for Stampede 

energy. Under this contract, the 

Contractor accepts delivery of all energy 

generated from Stampede and integrates 

this generation into its resource 

portfolio. The monthly calculation of 

revenue from Stampede energy received 

by the Contractor is credited into the 

SEEA at the SEEA rate. Western can use 

the SEEA to benefit project use facilities 

and market energy from Stampede to 

CVP preference entities. 

In the SEEA, the revenues from sales 

(generation revenues) made at the SEEA 

rate are reduced by the project use and 

station service power costs and SEEA 

administrative costs. Western applies 

the ratio of project use costs to the 

generation revenue recorded in the 

SEEA to determine a non-reimbursable 

percentage. One hundred percent minus 

this non-reimbursable percentage 

establishes a reimbursable percentage. 

This reimbursable percentage is then 

applied to the appropriate power-related 

costs to determine the reimbursable 

costs for repayment. The reimbursable 

costs are then netted against generation 

revenues made at the SEEA rate. As 

stipulated under the 2004 CVP Power 

Marketing Plan, any remaining 

reimbursable costs, to include interest 

and annual capital costs, are then 

transferred to the CVP for incorporation 

into the CVP PRR. 

Since 1994, the Sierra Pacific Power 

Company (Sierra), through Contract 94–

SAO–00010 (Contract 00010), has 

served as the Contractor for integrating 

Stampede generation into its resource 

portfolio and serving station service and 

project use loads in Sierra’s service 

territory. The current rate schedule 

(SNF–6) links the current non-firm 

power formula rate to Contract 00010 

and the management of the SEEA. In 

addition, the index that was used in 

Rate Schedule SNF–6 to set the ‘‘floor 

rate’’ was contained in Contract 00010. 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices 6959 

2This estimated floor rate was calculated using 

historical hourly generation and market rate 

information. 

On May 10, 2007, the Truckee-Donner 

Public Utilities District (Truckee 

Donner) and the City of Fallon (Fallon), 

two preference customers located 

within Sierra’s control area, entered into 

a contract with Western that replaces 

Contract 00010. This new contract with 

Truckee Donner and Fallon (TDF), 

Contract 07–SNR–01026 (Contract 

01026), uses a market index 

methodology as the basis for valuing 

Stampede generation. The effective date 

of Contract 01026 was August 1, 2007. 

The change in contractors and the ‘‘floor 

rate’’ definition makes it necessary for 

Western to initiate a new rate case to 

revisit the formula rate. In this proposed 

rate design, Western is using a general 

term of ‘‘Contractor’’ in the 

development of the proposed formula 

rate and resulting rate schedule in order 

to provide flexibility in the event the 

contractor changes in the future. 

As indicated above, the nonreimbursable portion of the annual O&M 

costs are defined as the ratio of project 

use costs (i.e., costs to serve project use 

loads) divided by the generation 

revenue from the Stampede Powerplant 

(annual generation valuation). 

Beginning in August 2007, due to the 

change in the SEEA rate, Western 

anticipates a reduction in the nonreimbursable percentage for the Washoe 

Project. This condition will 

subsequently increase reimbursable 

costs to the preference power customers. 

Western estimates that the reimbursable 

O&M costs could increase between 

$85,000 and $223,000 annually due to 

the change in generation revenues. 

The proposed formula rate will 

materially increase the Stampede 

Revenue for repayment of the Washoe 

Project. As a general comparison, the 

floor rate under the terminated Sierra 

Contract 00010 was $17.89 per 

megawatt hour (MWh). Western 

estimates that the floor rate under the 

current TDF Contract would have 

ranged from $29.85 to $42.71 per 

MWh.2 The table below provides further 

comparison of fiscal year (FY) 04–07 

Stampede revenues between Sierra’s 

terminated contract and the new TDF 

Contract. This information illustrates 

the significance of the change in the 

SEEA rate. 

TABLE 1.—COMPARISON OF GENERATION REVENUES BETWEEN THE SIERRA AND TDF CONTRACT

FY 

Total 

Stampede 

gen (MWh) 

Sierra 

Contract 

00010 

(Terminated) 

TDF Contract 01026 (current) 

Difference 

between 

SEEA rate and 

floor rate 

revenues Calculated 1

floor rate 

revenue 

Calculated 

SEEA rate 

revenue 

(on-peak) 

Calculated 

SEEA rate 

revenue 

(off-peak) 

Total 

calculated 

SEEA rate 

revenue 

2004 ............................................................. 9,586 $171,500 $234,171 $152,256 $386,427 $214,927 

2005 ............................................................. 7,831 140,102 160,005 102,583 262,588 122,487 

2006 ............................................................. 16,142 288,788 334,916 193,352 528,268 239,480 

2007 ............................................................. 11,239 201,070 220,580 138,285 358,865 157,794 

1For illustrative purposes, the Sierra contract calculations are presumed to exist for the entire year. 

Annual Stampede generation usually 

creates sufficient revenues in the SEEA 

to pay project use and station service 

costs. Due to the low floor rate used to 

credit the SEEA under the Sierra 

contract, low Stampede generation 

resulted in insufficient funds in the 

SEEA in some fall and winter months to 

cover the payment of project use and 

station service costs. In these cases, the 

U.S. Fish and Wildlife Service (FWS) 

was required to use its Federal 

appropriation to pay for its project use 

loads’ electric service bills. Under the 

new contract, Western anticipates that 

generation valuation will be greater than 

in the past, which will reduce FWS’s 

burden of payment and protect project 

use loads from incurring additional 

costs as a result of its monthly power 

costs exceeding SEEA balances. 

Estimates of revenues and expenses 

are listed in Table 2. 

TABLE 2.—COMPARISON OF EXISTING AND PROPOSED NON-FIRM POWER FORMULA RATE COMPONENTS

([Based on a 5-year average for FY 2008–2012]) 1

Component 2 Existing floor rate 

($) 

Proposed SEEA 

rate 2 ($) (effective 

August 1, 2008) 

Percent 

change 

Stampede Revenue ............................................................................................................. 214,680 560,064 161 

Expenses: 

O&M (reimbursable only) ............................................................................................. 0 233,207 2332 

Project Use ................................................................................................................... 239,723 239,723 0 

Interest .......................................................................................................................... 213,993 211,626 ¥1 

Capital Repayment ....................................................................................................... 584,164 584,508 0 

Total Expenses ...................................................................................................... 1,037,880 1,269,064 22 

Stampede Annual Transferred PRR (Stampede Revenue—Total Expenses) ................... (832,200) (709,000) ¥14 

1Existing and proposed rates are based on a historical generation average. The difference between the two rates is (1) different generation 

valuation rates and (2) different reimbursable percentages as a result of the generation value. 2Amounts represent the 5-year averages of each component. 


pwalker on PROD1PC71 with NOTICES
6960 Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices 

Western will review the PRR for the 

Stampede Powerplant semiannually in 

or around March and September each 

year. According to the existing rate 

procedures for the CVP, Western will 

review the CVP PRR in March and 

September of each year (71 FR 45821). 

The CVP rate procedures stipulate that 

Western will analyze the CVP financial 

data from October through February, to 

the extent information is available, as 

well as forecasted data for March 

through September. In the case of 

Stampede, Western will use the most 

current Power Repayment Study (PRS) 

and the disposition of the SEEA account 

up through February and estimate 

March through September and other 

financial data, to the extent information 

is available, to determine the amount of 

costs to be included in the CVP PRR. In 

September, when the next review 

occurs, Western will use the same 

methodology to include costs in the 

CVP PRR for the following year. At the 

time Western makes a final decision 

regarding this proposed formula rate, to 

the extent that updated financial data is 

made available, Western will update the 

PRS supporting the proposed rate. 

Based on estimated expenses and 

projected Stampede revenues, the 

Stampede Annual Transferred PRR for 

October 2008 through September 2009 

(FY 2009), the first full year of the 

proposed rate, is estimated to be 

$480,000. 

A comparison of existing and 

proposed rates and revenue requirement 

follows: 

TABLE 3.—COMPARISON OF EXISTING AND PROPOSED RATES AND REVENUE REQUIREMENT WASHOE PROJECT, 

STAMPEDE POWERPLANT

Non-firm energy rates and PRR Existing rates Proposed rates (effective 8/1/08) Percent change 

Floor Rate (Mills/kWh) ........................... 0.01789 $/kWh ...................................... N/A ........................................................ N/A. 

SEEA Rate—Average ........................... N/A ........................................................ 0.04667 $/kWh ...................................... N/A. 

Stampede Annual Transferred PRR (5- 

year average).

$823,200 ............................................... $709,000 ............................................... ¥14 

Legal Authority 

Stampede Powerplant is a feature of 

the Washoe Project authorized by 

Congress in 1956 and is located on the 

Little Truckee River in Sierra County, 

California (70 Stat.775 (1956)). The 

powerplant has a maximum operating 

capability of 3,650 kilowatts (kW) with 

an estimated annual generation over the 

past 12 years of 12-million KWh. Since 

Stampede Powerplant has an installed 

capacity of less than 20,000 kW and 

generates less than 100 million kWh 

annually for sale, the proposed rate 

constitutes a minor rate adjustment. 

Western has determined that it is not 

necessary to hold a public information 

or comment forum for this proposed 

minor rate adjustment as defined by 10 

CFR part 903.23(a). After review of 

public comments, and possible 

amendments or adjustments, Western 

will recommend the Deputy Secretary of 

Energy approve the proposed rate on an 

interim basis. 

Western is establishing the proposed 

non-firm power formula rate for nonfirm energy for the Stampede 

Powerplant 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)); 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 

Federal Energy Regulatory Commission. 

Existing Department of Energy (DOE) 

procedures for public participation in 

power rate adjustments are published in 

Title 10 of the Code of Federal 

Regulations in Part 903. 

Pursuant to paragraph 1.5 of 

Delegation Order No. 00–037.00, 

Western’s Administrator approved the 

power formula rate for the sale of shortterm, non-firm power to Truckee 

Donner and Fallon effective August 1, 

2007. The Administrator’s approval 

provided interim rate authority between 

the effective date of the new contract 

(August 1, 2007) and the effective date 

of the proposed rate (August 1, 2008). 

The Administrator’s approval will 

expire on July 31, 2008, or upon 

approval of this proposed rate that 

supersedes Rate Order No. WAPA–119, 

whichever occurs earlier. 

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 Sierra Nevada Regional Office, 

located at 114 Parkshore Drive, Folsom, 

California. Many of these documents 

and supporting information are also 

available on the Web site under the 

‘‘Current Rates’’ section located at 

http://www.wapa.gov/sn/marketing/ 

rates/. 

Regulatory Procedure Requirements 

Environmental Compliance 

In compliance with the National 

Environmental Policy Act of 1969 

(NEPA) (42 U.S.C. 4321, et seq.); the 

Council on Environmental Quality 

Regulations for implementing NEPA (40 

CFR 1500–1508); and DOE NEPA 

Regulations Implementing Procedures 

and Guidelines (10 CFR part 1021), 

Western has determined this action is 

categorically excluded from the 

preparation of an environmental 

assessment or 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. 

Dated: January 17, 2008. 

Timothy J. Meeks, 

Administrator. 

[FR Doc. E8–2148 Filed 2–5–08; 8:45 am] 

BILLING CODE 6450–01–P 


pwalker on PROD1PC71 with NOTICES