Boulder Canyon ProjectProposed Power Service Rate

DEPARTMENT OF ENERGY

Western Area Power Administration

Boulder Canyon Project--Proposed Power Service Rate

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Boulder Canyon Project Power Service Rate

Adjustment.

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

SUMMARY: The Western Area Power Administration (Western) is announcing

a second annual rate adjustment for power service for the Boulder

Canyon Project (BCP). The annual rate adjustments are a requirement of

the ratesetting methodology of WAPA-58 which was approved by Federal

Energy Regulatory Commission on November 3, 1993, Docket No. EF93-5091-

000. The power repayment spreadsheet study and other analyses indicate

that the proposed rates for BCP power service are necessary to provide

sufficient revenue to pay all annual costs (including interest

expense), plus repayment of required investment within the allowable

time period. The proposed rate for BCP power service is expected to

become effective October 1, 1994.

The proposed rate for BCP power service is based on a composite

rate of 14.11 mills per kilowatthour (mills/kWh). This composite rate

consists of an energy charge of 7.06 mills/kWh and a capacity charge of

$1.23 per kilowatt/month (kW/month).

The existing BCP power service composite rate is 12.62 mills/kWh,

comprised of an energy charge of 6.31 mills/kWh and capacity charge of

$1.07 per kW/month.

The Administrator of Western confirmed and approved the existing

rate schedule on a final basis to be placed into effect on February 1,

1994.

The following table compares the BCP existing rates with the

proposed rates:

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

Existing

rates Feb.

1, 1994 Proposed Percent

Type of service through rates Oct. change

Sept. 30, 1, 1994

1994

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

Composite Rate (mills/kWh)....... 12.62 14.11 11.8

Energy Rate (mills/kWh)......... 6.31 7.06 11.9

Capacity Rate (kW/month)......... $1.07 $1.23 15.0

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

Since the proposed 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 public comments,

Western will recommend the proposed rates for approval on a final basis

by the Administrator of Western.

DATES: The consultation and comment period will begin with publication

of this notice in the Federal Register and will end not less than 90

days later, or August 18, 1994, whichever occurs later. A public

information forum will be held at 10 a.m. on June 15, 1994, at

Western's Phoenix Area Office, 615 South 43rd Avenue, Phoenix, Arizona.

A public comment forum at which Western will receive oral and written

comments will be held at 10 a.m. on July 8, 1994, at Western's Phoenix

Area Office.

Written comments should be received by Western by the end of the

consultation and comment period to be assured consideration and should

be sent to the address below.

FOR FURTHER INFORMATION CONTACT: Acting Area Manager, Mr. J. Tyler

Carlson, Phoenix Area Office, Western Area Power Administration, P.O.

Box 6457, Phoenix, AZ 85005, (602) 352-2521.

SUPPLEMENTARY INFORMATION: Power service rates for the BCP are

established pursuant to the Department of Energy Organization Act (42

U.S.C. 7101 et seq.) and the Reclamation Act of 1902 (43 U.S.C. 372 et

seq.), as amended and supplemented by subsequent enactments,

particularly section 9(c) of the Reclamation Project Act of 1939 (43

U.S.C. 485h(c)); the Colorado River Basin Project Act of 1968 (43

U.S.C. 1501 et seq.); the Colorado River Storage Project Act of 1956

(43 U.S.C. 620 et seq.); the Boulder Canyon Project Act of 1928 (43

U.S.C. 617, et seq.); the Boulder Canyon Project Adjustment Act of 1940

(43 U.S.C. 618 et seq.); the Hoover Power Plant Act of 1984 (43 U.S.C.

619 et seq.); the General Regulations for Power Generation, Operation,

Maintenance, and Replacement at the Boulder Canyon Project, Arizona/

Nevada (43 CFR part 431) published in the Federal Register at 51 FR

23960 on July 1, 1986; and the General Regulations for the Charges for

the Sale of Power from the Boulder Canyon Project, Final Rule (General

Regulations) (10 CFR part 904) published in the Federal Register at 51

FR 43124 on November 28, 1986.

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 the Administrator of Western; (2) the authority

to confirm, approve, and place such rates into effect on an interim

basis to the Deputy Secretary; and (3) the authority to confirm,

approve, and place into effect on a final basis, to remand, or to

disapprove power rates to the Federal Energy Regulatory Commission.

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, and other

documents made or kept by Western for the purpose of developing the

proposed rates for BCP power service are and will be made available for

inspection and copying at the Phoenix Area Office, located at 615 South

43rd Avenue, Phoenix, AZ 85005.

Regulatory Flexibility Analysis

Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et

seq.), each agency, when required by 5 U.S.C. 553 to publish a proposed

rule, is further required to prepare and make available for public

comment an initial regulatory flexibility analysis to describe the

impact of the proposed rule on small entities. In this instance, the

initiation of the BCP power service rate adjustments are related to

nonregulatory services provided by Western at a particular rate. Under

5 U.S.C. 601(2), rules of particular applicability relating to rates or

services are not considered rules within the meaning of the act. Since

the BCP power service rates are of limited applicability, no

flexibility analysis is required.

Determination Under Executive Order 12866

DOE has determined that this is not a significant regulatory action

because it does not meet the criteria of Executive Order 12866, 58 FR

51735. 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.

Environmental Evaluation

In compliance with the National Environmental Policy Act (NEPA) of

1969, 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.

Issued in Golden, Colorado, May 19, 1994.

William H. Clagett,

Administrator.

[FR Doc. 94-13195 Filed 5-27-94; 8:45 am]

BILLING CODE 64501-01-P