Sam Rayburn Dam Power Rate Schedules

DEPARTMENT OF ENERGY

Southwestern Power Administration

Sam Rayburn Dam Power Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: The Secretary of Energy acting under sections 301(b), 302(a),

402(e), 641, 642, 643, and 644, of the Department of Energy

Organization Act (P. L. 95-91) has approved and placed into effect on

an interim basis Rate Order No. SWPA-49 which decreases the power rate

for the Sam Rayburn Dam Project (Rayburn) pursuant to the following Sam

Rayburn Dam Rate Schedule:

Rate Schedule SRD-02, Wholesale Rates for Hydro Power and Energy

Sold to Sam Rayburn Dam Electric Cooperative, Inc., (Contract No.

DE-PM75-92SW00215)

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant

Administrator, Office of Corporate Operations, Southwestern Power

Administration, Department of Energy, One West Third Street, Tulsa, OK

74103, (918) 595-6696, [email protected].

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for

the Rayburn project is $2,077,632 per year. The rate was approved on a

final basis by the Federal Energy Regulatory Commission on October 22,

2001, for the period October 1, 2001, through September 30, 2005. The

FY 2002 Rayburn Power Repayment Studies indicate the need for a

decrease in the annual rate of $64,608, or 3.1 percent beginning

October 1, 2002.

The Administrator, Southwestern Power Administration (Southwestern)

has followed Title 10, Part 903 Subpart A, of the Code of Federal

Regulations, ``Procedures for Public Participation in Power and

Transmission Rate Adjustments and Extensions'' (Part 903) in connection

with the proposed rate schedule. On May 21, 2002, Southwestern

published notice in the Federal Register, 67 FR 35805, of a 90-day

comment period, together with a Public Information Forum and a Public

Comment Forum, to provide an opportunity for customers and other

interested members of the public to review and comment on a proposed

rate decrease for the Rayburn project. Both public forums were canceled

when no one expressed an intention to participate. Written comments

were accepted through August 19, 2002. Only one comment was received

from Gillis & Angley, Counselors at Law, on behalf of Sam Rayburn Dam

Electric Cooperative, Inc. (SRDEC), which stated that SRDEC (the sole

customer) had no objection to the proposed rate adjustment.

Information regarding this rate proposal, including studies and

other supporting material, is available for public review and comment

in the offices of Southwestern Power Administration, Suite 1400, One

West Third Street, Tulsa, Oklahoma 74103.

Following review of Southwestern's proposal within the Department

of Energy, I approved Rate Order No. SWPA-49, which decreases the

existing Rayburn rate to $2,013,024 per year for the period October 1,

2002, through September 30, 2006.

Dated: September 18, 2002.

Spencer Abraham,

Secretary.

[Rate Order No. SWPA-49]

In the matter of:

Order Confirming, Approving and Placing Decreased Power Rate Schedule

in Effect on an Interim Basis

Pursuant to sections 301(b), 302(a), 402(e), 641, 642, 643, and

644, of the Department of Energy Organization Act, Public Law 95-91,

the functions of the Secretary of the Interior and the Federal Power

Commission under Section 5 of the Flood Control Act of 1944, 16 U.S.C.

825s, for the Southwestern Power Administration (Southwestern) was

transferred to and vested in the Secretary of Energy. By Delegation

Order No. 0204-108, effective December 14, 1983, 48 FR 55664, the

Secretary of Energy delegated to the Deputy Secretary of Energy on a

non-exclusive basis the authority to confirm, approve and place power

and transmission rates into effect on an interim basis, and delegated

to the Federal Energy Regulatory Commission (FERC) on an exclusive

basis the authority to confirm, approve and place in effect on a final

basis, or to disapprove power and transmission rates. Amendment No. 1

to Delegation Order No. 0204-108, effective May 30, 1986, 51 FR 19744,

revised the delegation of authority to confirm, approve and place into

effect on an interim basis power and transmission rates by delegating

such authority to the Under Secretary of Energy. This delegation was

reassigned to the Deputy Secretary of Energy by Department of Energy

(DOE) Notice 1110.29, dated October 27, 1988, and clarified by

Secretary of Energy Notice SEN-10-89, dated August 3, 1989, and

subsequent revisions. By Amendment No. 2 to Delegation Order No. 0204-

108, effective August 23, 1991, 56 FR 41835, the Secretary of the

Department of Energy delegated to the Assistant Secretary, Conservation

and Renewable Energy, the authority which was previously delegated to

the Deputy Secretary in that Delegation Order. By Amendment No. 3 to

Delegation Order No. 0204-108, effective November 10, 1993, the

Secretary of Energy re-delegated to the Deputy Secretary of Energy, the

authority to confirm, approve and place into effect on an interim basis

power and transmission rates of the Power Marketing Administrations. By

notice, dated April 15, 1999, the Secretary of Energy rescinded the

authority of the Deputy Secretary of Energy under Delegation Order No.

0204-108. By Delegation Order No. 0204-172, effective November 24,

1999, the Secretary of Energy again provided interim rate approval

authority to the Deputy Secretary of Energy. Pursuant to Delegation

Order No. 00-037.00, effective December 6, 2001, authority is delegated

to the Deputy Secretary of Energy for interim rate approval and to the

Federal Energy Regulatory Commission for final rate approval.

Delegation Order No. 0204-108 is no longer applicable to rates filed by

the Power Marketing Administrations. While presently there is no Deputy

Secretary; the Secretary of Energy possesses the necessary authority to

approve rates.

Background

The Sam Rayburn Dam Project (Rayburn) is located on the Angelina

River in the State of Texas in the Neches River Basin. Since the

beginning of its operation in 1965, it has been marketed as an isolated

project, under contract with Sam Rayburn Dam Electric Cooperative, Inc.

(Contract No. DE-PM75-92SW00215).

In the Federal Energy Regulatory Commission (FERC) Docket No. EF01-

4021-000, issued October 22, 2001, for the period October 1, 2001,

through September 30, 2005, the FERC confirmed and approved the current

annual Sam Rayburn Dam rate of $2,077,632.

Discussion

Southwestern's FY 2002 Current Power Repayment Study (PRS)

indicates that the existing annual power rate of $2,077,632 did not

represent the lowest possible rate needed to meet cost recovery

criteria. The reduced revenue requirement is due to a decrease in the

Corps of Engineers (Corps) and Southwestern operations and maintenance

expenses. The Revised PRS indicates that a decrease in annual revenues

of $64,608 beginning in FY 2003 is sufficient to accomplish repayment

of the Federal investment in the required number of years. Accordingly,

Southwestern developed a proposed rate schedule based on that decreased

revenue requirement.

Title 10, part 903, Subpart A of the Code of Federal Regulations,

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``Procedures for Public Participation in Power and Transmission Rate

Adjustment,'' has been followed in connection with the proposed rate

adjustment. More specifically, opportunities for public review and

comment during a 90-day period on the proposed Rayburn power rate were

announced by notice published in the Federal Register, May 21, 2002, 67

FR 35805. A Public Information Forum was scheduled to be held June 6,

2002, and a Public Comment Forum was scheduled to be held July 10,

2002, both in Tulsa, Oklahoma. Both forums were canceled as no one

expressed an intent to participate. Written comments were due by August

19, 2002. Southwestern provided notice of the Federal Register,

together with supporting data, to the customer and interested parties

for review and comment during the formal period of public

participation. In addition, prior to the formal 90-day public

participation process, Southwestern met with the customer and the

customer representative to discuss the preliminary information on the

proposed rate adjustment. Only one formal comment was received from

Gillis & Angley, Counsellors at Law, on behalf of Sam Rayburn Dam

Electric Cooperative, Inc. (SRDEC), which stated that SRDEC (the sole

customer) had no objection to the proposed rate adjustment.

Upon conclusion of the comment period in August 2002, Southwestern

finalized the Power Repayment Study and rate schedule for the proposed

annual rate of $2,013,024 which is the lowest possible rate needed to

satisfy repayment criteria. This rate represents an annual decrease of

3.1 percent.

Information regarding this rate decrease, including studies and

other supporting material, is available for public review and comment

in the offices of Southwestern Power Administration, One West Third

Street, Tulsa, Oklahoma 74103.

Comments and Responses

Southwestern received one written comment in which the customer

representative expressed no objection to the proposed rate adjustment.

Other Issues

There were no other issues raised during the informal meeting or

during the formal public participation period.

Administrator's Certification

The FY 2002 Revised Rayburn PRS indicates that the annual power

rate of $2,013,024 will repay all costs of the project, including

amortization of the power investment consistent with provisions of the

Department of Energy (DOE) Order No.

RA 6120.2. In accordance with Delegation Order No. 00-037.00,

December 6, 2001, and Section 5 of the Flood Control Act of 1944, the

Administrator has determined that the proposed Rayburn power rate is

consistent with applicable law and the lowest possible rate consistent

with sound business principles.

Environment

The environmental impact of the rate decrease proposal was

evaluated in consideration of DOE's guidelines for implementing the

procedural provisions of the National Environmental Policy Act, 10 CFR

part 1021, and was determined to fall within the class of actions that

are categorically excluded from the requirements of preparing either an

Environmental Impact Statement or an Environmental Assessment.

Order

In view of the foregoing and pursuant to the authority delegated to

me, I hereby confirm, approve and place in effect on an interim basis,

for the period October 1, 2002, through September 30, 2006, the annual

Sam Rayburn Dam Rate of $2,013,024 for the sale of power and energy

from Sam Rayburn Dam to the Sam Rayburn Electric Cooperative, Inc.,

under Contract No. DE-PM75-92SW00215, dated October 7, 1992.

Dated: September 18, 2002.

Spencer Abraham,

Secretary.

[FR Doc. 02-24864 Filed 9-30-02; 8:45 am]

BILLING CODE 6450-01-P