Sam Rayburn Dam Project and Robert D. Willis Hydropower Project

DEPARTMENT OF ENERGY

Southwestern Power Administration

Sam Rayburn Dam Project and Robert D. Willis Hydropower Project

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Proposed Sam Rayburn Dam and Robert Douglas Willis

power rates and opportunities for public review and comment.

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SUMMARY: The Administrator, Southwestern, has prepared Current and

Revised 1994 Power Repayment Studies for the Sam Rayburn Dam (Rayburn)

project and the Robert Douglas Willis (Willis) Hydropower project which

indicate the need for rate adjustments at both projects to meet cost

recovery criteria. These rate adjustments are needed primarily to

recover estimated increases in Corps of Engineers' operation and

maintenance expenses at the two hydropower projects. The proposed rate

for Rayburn increases annual revenue requirements approximately 4.4

percent from $2,076,444 to $2,168,136, beginning October 1, 1994. The

proposed rate for the Willis project increases annual revenue

requirements approximately 3.6 percent from $284,580 to $294,696,

beginning October 1, 1994. The Administrator has developed proposed

rate schedules for the Rayburn and Willis projects to recover the

required revenues.

DATES: A Public Information Forum will be held July 7, 1994, in Tulsa,

Oklahoma. A Public Comment Forum will be held August 1, 1994, in Tulsa,

Oklahoma. Written comments are due on or before August 15, 1994.

Revised rates for Sam Rayburn Dam and Robert D. Willis projects are

calculated based on an October 1, 1994, implementation date. Therefore,

to provide opportunities for public consultation and comment while also

meeting the October 1, 1994, date for implementation, Southwestern is

conducting a 60 day public notice and comment period (10 CFR

903.14(d)). This public participation period is reduced since there is

only a single customer for each project and those two customers

directly impacted have been informed of the impending rate increases;

any comments from the customers are expected to be developed well

within the 60 day period; coordination, if needed, can be accomplished

within that same period. In addition, Southwestern does not expect

much, if any, interest in these proceedings from any other entity.

[Note: The proposed rate change for the Willis project is classified as

a minor rate adjustment and does not require any comment period to

exceed 30 days (10 CFR 903.14).]

ADDRESSES: Written comments should be submitted to the Administrator,

Southwestern Power Administration, U.S. Department of Energy, P.O. Box

1619, Tulsa, Oklahoma 74101.

FOR FURTHER INFORMATION CONTACT: Mr. George C. Grisaffe, Assistant

Administrator, Office of Administration and Rates, Southwestern Power

Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa,

Oklahoma 74101 (918) 581-7419.

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy (DOE) was

created by an Act of the U.S. Congress, Department of Energy

Organization Act, Pub. L. 95-91, dated August 4, 1977, and

Southwestern's power marketing activities were transferred from the

Department of Interior to the DOE, effective October 1, 1977.

Guidelines for preparation of power repayment studies are included in

DOE Order No. RA 6120.2, Power Marketing Administration Financial

Reporting. Procedures for Public Participation in Power and

Transmission Rate Adjustments of the Power Marketing Administrations

are found at Title 10, Part 903, Subpart A of the Code of Federal

Regulations (10 CFR 903).

Southwestern markets power from 24 multiple-purpose reservoir

projects with power facilities constructed and operated by the U.S.

Army Corps of Engineers (Corps). These projects are located in the

States of Arkansas, Missouri, Oklahoma, and Texas. Southwestern's

marketing area includes these states plus Kansas and Louisiana. Of the

total, 22 projects comprise the Integrated System and are generally

interconnected through Southwestern's transmission system and exchange

agreements with other utilities. The power produced by the remaining

two hydroelectric generating projects, Rayburn and Willis, is marketed

by Southwestern under separate contracts through which two customers

purchase the entire power output at each of the two projects. The

Rayburn project, located on the Angelina River within the Neches River

Basin, in eastern Texas, consists of two hydroelectric generating units

with a total capacity of 52.0 megawatts (MW). The Willis project is

located on the Neches River downstream from the Rayburn project and has

two hydroelectric generating units with a total capacity of 7.4 MW. The

two customers, Sam Rayburn Dam Electric Cooperative, Inc. (SRDEC) and

the Sam Rayburn Municipal Power Agency (SRMPA), currently receive the

entire output of the Rayburn and Willis projects, respectively. In the

case of Willis, SRMPA receives the entire electrical output of the

project as a result of its non-federally funding the construction of

the hydroelectric facilities at the project. SRDEC receives the entire

electrical output of the Rayburn project through a contract that

provides for an isolated rate. These projects are not currently

interconnected with Southwestern's Integrated System. A separate power

repayment study is prepared for each project and both have special

rates based on their non-interconnected operations. Following DOE Order

No. RA 6120.2 guidelines, the Administrator, Southwestern, prepared a

Current Power Repayment Study for both the Rayburn and Willis projects

using existing rates.

Both Current Power Repayment Studies indicated that the legal

requirement to repay the power-related costs, with interest, will not

be met without additional revenue. This revenue need results primarily

from increased annual operation and maintenance expenses projected by

the Corps. The Revised Power Repayment Study for Rayburn shows that

additional annual revenue of $91,692 (a 4.4 percent increase),

beginning October 1, 1994, is needed to satisfy repayment criteria.

This would increase revenues received from the Rayburn project customer

(SRDEC) from the current $2,076,444 to $2,168,136 annually. The Revised

Power Repayment Study for Willis shows that additional annual revenue

of $10,116 (a 3.6 percent increase), would provide sufficient revenues

for repayment of the projected expenses within the required period.

This would increase revenues received from the Willis project customer

(SRMPA) from the current $284,580 to $294,696 annually, beginning

October 1, 1994.

Opportunity is presented for customers and other interested parties

to receive copies of the Rayburn and Willis studies and the proposed

rate schedules. If you desire a copy of the Power Repayment Study Data

Package for either or both projects, submit your request to Mr. George

C. Grisaffe at the address cited above.

A Public Information Forum will be held at 1 p.m., Thursday, July

7, 1994, in Southwestern's offices, Room 1402, Williams Center Tower I,

One West Third Street, Tulsa, Oklahoma, to explain to customers and

interested parties the proposed rates and supporting studies. The Forum

will be conducted by a chairman who will be responsible for orderly

procedure. Questions concerning the rates, studies and information

presented at the Forum may be submitted from interested persons and

will be answered, to the extent possible, at the Forum. Questions not

answered at the Forum will be answered in writing, except that

questions involving voluminous data contained in Southwestern's records

may best be answered by consultation and review of pertinent records at

Southwestern's offices. Persons interested in attending the Public

Information Forum should indicate in writing by Monday, July 4, 1994,

their intent to appear at such Forum. Accordingly, if no one so

indicates their intent to attend, no such Forum will be held.

A Public Comment Forum will be held at 1 p.m., Monday, August 1,

1994, at the same location established for the Public Information

Forum. At the Public Comment Forum, interested persons may submit

written comments or make oral presentations of their views and

comments. This Forum will also be conducted by a chairman who will be

responsible for orderly procedure. Southwestern's representatives will

be present, and they and the chairman may ask questions of the

speakers. Persons interested in attending or speaking at the Public

Comment Forum should indicate in writing (use same address as used for

submitting comments) by Wednesday, July 27, 1994, their intent to

appear/speak at such Forum. Accordingly, if no one so indicates their

intent to attend, no such Forum will be held. The chairman may allow

others to speak if time permits.

A transcript of each Forum will be made. Copies of the transcripts

may be obtained from the transcribing service. Copies of all documents

introduced will be available from Southwestern upon request, for a fee.

Written comments on the proposed rates for either project are due on or

before August 15, 1994. Written comments should be submitted to the

Administrator, Southwestern Power Administration, U.S. Department of

Energy, P.O. Box 1619, Tulsa, Oklahoma 74101.

Following review of the oral and written comments and the

information gathered in the course of the proceedings, the

Administrator will submit the rate proposals, and Power Repayment

Studies in support of the proposed rates, to the DOE Deputy Secretary

for confirmation and approval on an interim basis, and to the Federal

Energy Regulatory Commission (FERC) for confirmation and approval on a

final basis. The FERC will allow the public an opportunity to provide

written comments on the proposed rate increases before making a final

decision.

Issued in Tulsa, Oklahoma, this 9th day of June, 1994.

Dallas Cooper,

Acting Administrator.

[FR Doc. 94-14555 Filed 6-14-94; 8:45 am]

BILLING CODE 6450-01-P