Mission Valley Power Utility, Montana; Power Rate Adjustment

SUMMARY: The Bureau of Indian Affairs (BIA) is increasing the cost of

electric power to customers of Mission Valley Power (MVP), the entity

operating the power facility of the Flathead Irrigation and Power

Project of the Flathead Reservation. The BIA has been informed by the

Bonneville Power Administration (BPA) that it is increasing its

wholesale power and transmission rates by 4.0 percent through an

interim surcharge. At the present time, the BPA supplies the majority

of MVP's wholesale power requirements through a contract, which will

expire in the year 2001.

Accordingly, the BIA is adjusting MVP rates and charges to reflect

the increased cost of service and power provided to MVP by the BPA. The

rate change will impact MVP's Basic Charge, Demand Charge, Horsepower

Charge and various energy rates within each rate class. The effective

date of the BPA rate change is October 1, 1995, through September 30,

1996. MVP will adjust its rates and charges effective October 1, 1995,

through September 30, 1996, accordingly.

DATES: These rates will become effective October 1, 1995.

FOR FURTHER INFORMATION CONTACT:Area Director, Bureau of Indian

Affairs, Portland Area Office, 911 N.E. 11th Avenue, Portland, Oregon

97232-4169, telephone (503) 231-6702; or, General Manager, Mission

Valley Power, P.O. Box 890, Polson, Montana 59860-0890. Telephone (406)

883-5361 or 1-800-823-3758 (in-State Watts). For further specific

information on the surcharge to be imposed by the Bonneville Power

Administration please contact the Bonneville Power Administration,

Corporate Communications, P.O. Box 12999, Portland, Oregon, or call

them at (503) 230-4201.

SUPPLEMENTARY INFORMATION: The authority to issue this document is

vested in the Secretary of the Interior by 5 U.S.C. 301; the Act of

August 7, 1946, c. 802, Section 3 (60 Stat. 895; 25 U.S.C. 385c); the

Act of May 25, 1948 (62 Stat. 269); and the Act of December 23, 1981,

section 112 (95 Stat. 1404). The Secretary has delegated this authority

to the Assistant Secretary--Indian Affairs pursuant to part 209

Departmental Manual, Chapter 8. 1A and Memorandum dated January 25,

1994, from Chief of Staff, Department of the Interior, to Assistant

Secretaries, and Heads of Bureaus and Offices.

A notice of proposed rate change was published in the Federal

Register on July 6, 1995 (60 FR 35315-35317). A 30-day comment period

was allowed. The Bureau received 1 comment.

The single comment received addressed concerns on the equitable

application of the 4% increase throughout the rate structure. The

application of the increase was reviewed and determined to be

appropriate. The BIA will respond directly to the commentator. This

rate increase is necessary to recover costs passed on to the BIA by

BPA.

The following table illustrates the impact of the surcharge.

BPA Wholesale Power Rate Revision From BPA to MVP

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

Retail rate Oct. 1,

Rate class Present rate 1995

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

Residential:

Basic charge....... $11.00/mo.(includes 127 $11.00(includes 125

kwh). kwh).

Energy charge...... $0.04724/kwh (over 127 $0.04817/kwh(over 125

kwh). kwh).

#2 General:

Basic charge....... $11.00/mo.(includes 109 $11.00/mo.(includes

kwh). 107 kwh).

Energy charge...... $0.05511/kwh (over 109 $0.05604/kwh(over 107

kwh). kwh).

Irrigation:

Horsepower charge.. $10.84/HP.............. $11.25/HP.

Energy charge...... $0.03605/kwh........... $0.03638/kwh.

Minimum seasonal $132.00 or $6.00/HP, Same.

charge:. whichever is greater.

Small and large

commercial:

Basic charge....... None................... None.

Monthly minimum.... $38.00................. $38.00.

Demand rate........ $4.34/KW of billing $4.50/KW of billing

demand. demand.

Energy charge...... $0.04269/kwh--First $0.04305/kwh--First

18,000 kwh. 18,000 kwh.

0.03551/kwh--Over $0.03588/kwh--Over

18,000 kwh. 18,000 kwh.

Monthly rate Monthly rate

Area lights installed

on existing pole or

structure:

7,000 lumen unit, $6.98.................. $7.00.

M.V.*.

20,000 lumen unit, $9.73.................. $10.00.

M.V.*.

9,000 lumen unit, $6.30.................. $6.50.

H.P.S.

22,000 lumen unit, $8.58.................. $8.75.

H.P.S.

Area lights installed

with new pole:

7,000 lumen unit, $8.70.................. $8.75.

M.V.*.

20,000 lumen unit, $11.43................. $11.50.

M.V.*.

9,000 lumen unit, $8.01.................. $8.25.

H.P.S.

22,000 lumen unit, $10.28................. $10.50.

H.P.S.

Street lighting

(metered):

Basic charge....... $11.00/mo.(over 109 $11.00/mo.(for 107

kwh). kwh).

Energy charge...... $0.05511(over 109 kwh). $0.05604(over 107

kwh).

[[Page 46009]]

Street lighting

(unmetered):

This rate class ......................

applies to

municipalities or

communities where

there are ten or

more lighting

units billed in a

group. This rate

schedule is

subject to a

negotiated

contract with MVP.

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

*Continuing Service Only.

Dated: August 29, 1995.

Ada E. Deer,

Assistant Secretary--Indian Affairs.

[FR Doc. 95-21778 Filed 8-31-95; 8:45 am]

BILLING CODE 4310-02-P-M