Integrated System Power Rates; Order Approving an Extension of Power Rates on an Interim Basis

DEPARTMENT OF ENERGY

Southwestern Power Administration

[Rate Order No. SWPA-29]

Integrated System Power Rates; Order Approving an Extension of

Power Rates on an Interim Basis

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of an Extension of Power Rates--Integrated System.

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SUMMARY: The Deputy Secretary of Energy, acting under Amendment No. 3

to Delegation Order No. 0204-108, dated November 10, 1993, 58 FR 59717,

and pursuant to the implementation authorities in 10 CFR 903.22(h) and

903.23(a), has approved Rate Order No. SWPA-29 which extends the

existing power rates for the Integrated System. This is an interim rate

action effective October 1, 1994, and extending for a period of one

year through September 30, 1995.

FOR FURTHER INFORMATION CONTACT: George C. Grisaffe, Assistant

Administrator, Office of Administration and Rates, Southwestern Power

Administration, Department of Energy, P.O. Box 1619, Tulsa, Oklahoma

74101 (918) 581-7419.

SUPPLEMENTARY INFORMATION: The existing rate schedules for the

Integrated System were approved on a final basis by the Federal Energy

Regulatory Commission on September 18, 1991, for the period ending

September 30, 1994. On June 14, 1994, the Southwestern Power

Administration (Southwestern) published notice in the Federal Register,

59 FR 30583, of its intention to seek a one-year extension of the

existing power rate for the Integrated System and provided for a 15-day

comment period. No comments were received. 10 CFR 903.22(h) and

903.23(a) provide implementation authority for such interim extension

to the Deputy Secretary.

Following review of Southwestern's proposal within the Department

of Energy, I approved, Rate Order No. SWPA-29, on August 29, 1994 which

extends the existing Integrated System rates for one year beginning

October 1, 1994.

Issued at Washington, D.C., this 29th day of August 1994.

William H. White,

Deputy Secretary.

Order Approving Extension of Power Rates on an Interim Basis

August 29, 1994.

Pursuant to Sections 302(a) and 301(b) 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 were 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 into effect on an interim basis power and transmission rates,

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 rather than the Deputy 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 revised Delegation Order No. 0204-108 to delegate

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 redelegated

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. This rate order is issued by

the Deputy Secretary pursuant to said Amendment to Delegation Order No.

0204-108.

This is an interim rate extension. It is made pursuant to the

authorities as implemented in 10 CFR 903.22(h) and 903.23(a).

Background

Southwestern Power Administration (Southwestern) currently has

marketing responsibility for 2.2 million kilowatts of power from 24

multiple-purpose reservoir projects, with power facilities constructed

and operated by the U.S. Army Corps of Engineers, generally in all or

portions of the states of Arkansas, Kansas, Louisiana, Missouri,

Oklahoma and Texas. The Integrated System, composed of 22 of the

projects, is interconnected through a transmission system presently

consisting of 138- and 161-kV high-voltage transmission lines, 69-kV

transmission lines, and numerous bulk power substations and switching

stations. In addition, contractual transmission arrangements provide

for integration of other projects into the system.

The remaining two projects, Sam Rayburn Dam and Robert Douglas

Willis, are isolated hydraulically and electrically from the

Southwestern transmission system, and their power is marketed under

separate contracts through which the customer purchases the entire

power output of the project at the dam. A separate Power Repayment

Study (PRS) is prepared for each isolated project, and each has a

special rate which is not a part of this study. The existing rate

schedules for the Integrated System were confirmed and approved on a

final basis by the FERC on September 18, 1991 for the period October 1,

1990 through September 30, 1994. The FY 1994 Integrated System PRSs

indicate the need for a minor rate adjustment of $726,051 annually, or

0.8 percent.

Pursuant to implementing authority in 10 CFR 903(h) and 903.23(a),

the Deputy Secretary of Energy may extend a FERC-approved rate on an

interim basis. The Administrator, Southwestern, published notice in the

Federal Register on June 14, 1994, 59 FR 30583, announcing a 15-day

period for public review and comment concerning the proposed interim

rate extension. In addition, informal meetings were held with customer

representatives on January 12, 1994; April 4, 1994; and May 6, 1994.

Written comments were accepted through June 29, 1994. No comments on

the proposed interim extension were received.

Discussion

The existing Integrated System rates are based on the FY 1990 PRS.

PRSs have been completed on the Integrated System each year since

approval of the existing rates. Rate changes indicated by the PRSs

during that period indicated the need for a minor rate increase or

decrease. Since the revenue changes reflected by the PRSs were within

the plus-or-minus two percent Rate Adjustment Threshold established by

Southwestern's Administrator on June 23, 1987, these rate adjustments

were deferred in the best interest of the government and provided for

the next year's PRS to determine the appropriate level of revenues

needed for the next rate period.

The FY 1994 PRS indicates the need for a minor rate increase of 0.8

percent. As has been the case since the existing rates were approved,

the FY 1994 rate adjustment needed falls within Southwestern's plus-or-

minus two percent Rate Adjustment Threshold and would normally be

deferred. However, the existing rates expire on September 30, 1994.

Consequently, Southwestern proposes to extend the existing rates for a

one-year period ending September 30, 1995, on an interim basis under

the implementation authorities noted in 10 CFR 903.22(h) and 903.23(a).

Southwestern continues to make significant progress toward

repayment of the Federal investment in the Integrated System. Through

FY 1993, status of repayment for the Integrated System was

$288,259,891, which represents approximately 30 percent of the

$971,634,103 Federal investment for the Integrated System. The status

has increased almost 47 percent since the existing rates were placed in

effect.

Information regarding this rate extension, 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 74101.

Order

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

me by the Secretary of Energy, I hereby extend on an interim basis, for

the period of one year, effective October 1, 1994, the current FERC-

approved Integrated System Rates for the sale of power and energy.

Issued at Washington, DC, August 29, 1994.

William H. White,

Deputy Secretary.

[FR Doc. 94-23124 Filed 9-16-94; 8:45 am]

BILLING CODE 6450-01-P