Salt Lake City Area Integrated ProjectsProposed Firm Power Rate

DEPARTMENT OF ENERGY

Western Area Power Administration

Salt Lake City Area Integrated Projects--Proposed Firm Power Rate

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Salt Lake City Area Integrated Projects Firm

Power Rate Adjustment.

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SUMMARY: The Western Area Power Administration (Western) is proposing a

rate adjustment for firm power for the Salt Lake City Area Integrated

Projects (SLCA/IP). The power repayment study and other analyses

indicate that the proposed rate for firm power is necessary to provide

sufficient revenue to pay all annual costs (including interest

expense), plus repayment of required investment, within the allowable

time period. This rate adjustment is a result of inclusion of

construction work in progress, the fiscal year (FY) 1994 and 1995

congressional budgets, more recent projections of project investments

and interest, and updated operations and maintenance (O&M) expenses.

Budgets for Western's O&M expenses do not exceed the FY 1993 actual O&M

expenditures, compounded at 2 percent per year. The rate impact is

detailed in a rate brochure to be distributed to all interested

parties. The proposed rate for firm power is expected to become

effective December 1, 1994.

The existing SLCA/IP firm power rate is comprised of an energy

charge of 8.40 mills per kilowatthour (mills/kWh) and a capacity charge

of $3.54 per kilowatt/month ($/kW/month), calculated at a 58.2 percent

load factor.

The proposed firm power rate consists of an energy charge of 9.10

mills/kWh and a capacity charge of $3.86/kW/month, calculated at a

58.2-percent load factor. These components result in a composite rate

of 20.44 mills/kWh, which may also be expressed as a combined rate of

18.18 mills/kWh. A combined rate is influenced by a predetermined load

factor whereas a composite rate is influenced by the relationship

between the project revenue requirement and the corresponding period's

available energy. The proposed composite rate is an increase of 9.3

percent over the existing composite rate.

The Assistant Secretary for Conservation and Renewable Energy, U.S.

Department of Energy (DOE), approved the existing rate schedule on an

interim basis on August 10, 1992 effective October 1, 1992. (57 FR

36981, August 17, 1992; and 57 FR 47073, October 14, 1992). Federal

Energy Regulatory Commission (FERC) confirmed and approved the rate

schedule on a final basis on February 18, 1993. (62 FERC Para. 61,159).

The following table compares the SLCA/IP existing rates with the

proposed rates:

Comparison of Old and New SLCA/IP Firm Power Rates

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Percentage

Type of service Existing Proposed change

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Energy rate (mills/kWh)................. 8.40 9.10 8.33

Capacity rate ($/kW/month).............. $3.54 $3.86 9.04

Combined rate (mills/kWh)............... 16.72 18.18 8.73

Composite rate (mills/kWh).............. 18.70 20.44 9.3

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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 an interim

basis by the Deputy Secretary of DOE.

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 July 19, 1994, whichever occurs later. A public

information forum will be held at 1:30 p.m. on May 24, 1994, at the

Holiday Inn, 999 South Main Street, Salt Lake City, Utah. A public

comment forum at which Western will receive oral and written comments

will be held at 1:30 p.m. on June 30, 1994, at the Holiday Inn, 999

South Main Street, Salt Lake City, Utah.

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: Area Manager, Salt Lake City Area

Office, Western Area Power Administration, P.O. Box 11606, Salt Lake

City, UT 84147, (801) 524-5493.

SUPPLEMENTARY INFORMATION: Power rates for the SLCA/IP 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)), and

other acts specifically applicable to the project systems 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 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 such rates to FERC. 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 rate for firm power are and will be made available for

inspection and copying at the Salt Lake City Area Office, located at

257 East 200 South, Suite 475, Salt Lake City, UT 84111-2048.

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 SLCA/IP firm power rate adjustment is 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 SLCA/IP firm power rate is 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 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, April 13, 1994.

William H. Clagett,

Administrator.

[FR Doc. 94-9660 Filed 4-20-94; 8:45 am]

BILLING CODE 6450-01-P