[Federal Register Volume 66, Number 30 (Tuesday, February 13, 2001)]
[Notices]
[Pages 10018-10019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3590]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Proposed Base Charge and Rates for Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed base charge and rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
an adjustment to the base charge and rates for Boulder Canyon Project 
(BCP) firm power service. The current base charge and rates expire 
September 30, 2001. The proposed base charge and rates will provide 
enough revenue to pay all annual costs, including interest expense, and 
repay required investment within the allowable period. The rate impacts 
are detailed in a rate package to be provided to all interested 
parties. The proposed base charge and rates are scheduled to go into 
effect on October 1, 2001, to correspond with the start of the Federal 
fiscal year (FY), and will remain in effect through September 30, 2002. 
This Federal Register notice initiates the formal process for the 
proposed base charge and rates.

DATES: The consultation and comment period will begin today and will 
end May 14, 2001. A public information forum at which Western will 
present a detailed explanation of the proposed base charge and rates is 
scheduled for April 4, 2001, beginning at 10 a.m. MST, at the Desert 
Southwest Customer Service Regional Office. A public comment forum at 
which Western will receive oral and written comments is scheduled for 
April 25, 2001, beginning at 10 a.m. MST, at the same location.

ADDRESSES: Written comments are to be sent to: Mr. J. Tyler Carlson, 
Regional Manager, Desert Southwest Customer Service Region, Western 
Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, e-
mail: <a href="/cdn-cgi/l/email-protection#d0b3b1a2bca3bfbe90a7b1a0b1feb7bfa6"><span class="__cf_email__" data-cfemail="95f6f4e7f9e6fafbd5e2f4e5f4bbf2fae3">[email protected]</span></a>. Western should receive written comments by the 
end of the consultation and comment period to be assured consideration.

FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602) 
352-2768, e-mail: <a href="/cdn-cgi/l/email-protection#5e303f2d372c1e293f2e3f70393128"><span class="__cf_email__" data-cfemail="5937382a302b192e382938773e362f">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The proposed base charge and rates for BCP 
firm power service are designed to recover an annual revenue 
requirement that includes the investment repayment, interest, operation 
and maintenance, replacements, payment to states, visitor services, and 
uprating payments. These annual costs are reduced by the projected 
revenue from water sales, visitor services, water pump energy sales, 
facility use charge, regulation services, miscellaneous lease, late 
fees, and the prior year carryover to determine the annual revenue 
requirement. The projected annual revenue requirement is the base 
charge for firm power service and is divided by 50 percent to capacity 
dollars and 50 percent to energy dollars. The annual energy dollars are 
divided by the annual energy sales and the annual capacity dollars are 
divided by the annual capacity sales to determine the proposed energy 
rate and the proposed capacity rate.

                               Table 1.--Proposed Firm Power Base Charge and Rates
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                                                Total                                   Capacity
             Effective period                 composite    Base charge   Energy rate   rate ($/kW-    Capacity
                                             (mills/kWh)                 (mills/kWh)     month)     energy split
----------------------------------------------------------------------------------------------------------------
10/01/2001................................         10.75   $51,151,389          5.54         $1.06         50/50
----------------------------------------------------------------------------------------------------------------

    The Deputy Secretary of the Department of Energy (DOE) approved the 
existing rate formula for calculating the base charge and rates in Rate 
Schedule BCP-F6 for BCP firm power service on September 18, 2000 (Rate 
Order No. WAPA-94, 65 FR 60932, October 13, 2000), which has been 
submitted to the Federal Energy Regulatory Commission (FERC) for final 
confirmation and approval. Existing Rate Schedule BCP-F6 became 
effective on October 1, 2000, through September 30, 2005. Under Rate 
Schedule BCP-F6, on October 1, 2000, the composite rate for FY 2001 was 
9.75 mills per kilowatthour (mills/kWh), the base charge was 
$47,788,574, the forecasted energy rate was 5.04 mills/kWh, and the 
forecasted capacity rate was $0.99 per kilowattmonth (kWmonth). The 
proposed base charge and rates for BCP firm power service for FY 2002 
will result in an overall composite rate increase of approximately 9 
percent on October 1, 2001, when compared with the current BCP firm 
power service base charge and rates under Rate Schedule BCP-F6. The 
increase in the proposed base charge and rates is due to higher annual 
costs and lower energy sales. Table 2 compares the current base charge 
and rates in Rate Schedule BCP-F6 and the proposed base charge and 
rates along with the percentage change in the base charge and rates.

[[Page 10019]]



   Table 2.--Comparison of Current and Proposed Base Charge and Rates
      Percentage Change in Firm Power Service Base Charge and Rates
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                                     Current      Proposed     % Change
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Effective Period.................     10/01/00     10/01/01  ...........
Total Composite (mills/kWh)......         9.75        10.75            9
Base Charge ($)..................   47,788,574   51,151,389            7
Energy Rate (mills/kWh)..........         5.04         5.54            9
Capacity Rate ($/kWmonth)........         0.99         1.06            7
------------------------------------------------------------------------

    Since the proposed base charge and 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 the 
public comments, Western will recommend the proposed base charge and 
rates (as amended) be approved on a final basis by the DOE Deputy 
Secretary.
    The proposed firm power service base charge and rates for BCP are 
being established pursuant to the DOE Organization Act 42 U.S.C. 7101-
7352; the Reclamation Act of 1902, ch. 1093, 32 Stat.388, as amended 
and supplemented by subsequent enactments, particularly section 9(c) 
the Reclamation Project Act of 1939, 43 U.S.C. 485h(c); and other acts 
specifically applicable to the project involved.
    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 Western's Administrator; and (2) the authority to 
confirm, approve, and place into effect on a final basis, to remand, or 
to disapprove such rates to FERC. In Delegation Order No. 0204-172, 
effective November 24, 1999, the Secretary delegated the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) became 
effective on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents made or kept by Western for developing the proposed base 
charge and rates are and will be made available for inspection and 
copying at the Desert Southwest Customer Service Regional Office, 
located at 615 South 43rd Avenue, Phoenix, Arizona.

Regulatory Procedural Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to perform a regulatory flexibility analysis 
if a final rule is likely to have a significant economic impact on a 
substantial number of small entities and there is a legal requirement 
to issue a general notice of proposed rulemaking. Western has 
determined that this action does not require a regulatory flexibility 
analysis since it is a rulemaking of particular applicability involving 
rates or services applicable to public property.

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 has determined that this action is categorically 
excluded from the preparation of an environmental assessment or an 
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.

Small Business Regulatory Enforcement Fairness Act

    Western has determined that this rule is exempt from congressional 
notification requirements under 5 U.S.C. 801 because the action is a 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

    Dated: February 1, 2001.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 01-3590 Filed 2-12-01; 8:45 am]
BILLING CODE 6450-01-P


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