Boulder Canyon ProjectProposed Firm Power Service Base Charge

DEPARTMENT OF ENERGY

Western Area Power Administration

Boulder Canyon Project--Proposed Firm Power Service Base Charge

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Base Charge Adjustment.

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

the Fiscal Year 1996 annual rate adjustment for Rate Year 1997 under

Rate Order WAPA-70 for firm power service for the Boulder Canyon

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

ratesetting methodology of WAPA-70 which was approved on a final basis

by the Federal Energy Regulatory Commission on April 19, 1996. The

existing rate schedule was placed into effect on November 1, 1995. The

power repayment spreadsheet study indicates that the proposed Base

Charge for BCP firm power service is 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 Base Charge for firm power service is expected to become

effective October 1, 1996.

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 22, 1996, whichever occurs later. A public

information forum will be held at 10 a.m. on June 13, 1996, at

Western's Desert Southwest Customer Service Regional 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

15, 1996, at Western's Desert Southwest Customer Service Regional

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:

Mr. J. Tyler Carlson, Regional Manager, Desert Southwest Customer

Service Region, Western Area Power Administration, P.O. Box 6457,

Phoenix, AZ 85005-6457, (602) 352-2453.

Mr. Anthony H. Montoya, Assistant Regional Manager, For Power

Marketing, Desert Southwest Customer Service Region, Western Area Power

Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 352-2780.

SUPPLEMENTARY INFORMATION: The proposed Base Charge for BCP firm power

is based on an Annual Revenue Requirement of $46,421,533. The Base

Charge consists of an Energy Dollar of $23,968,846 and a Capacity

Dollar of $22,452,687. The Forecast Energy Rate will be 5.46 mills/

kilowatthour (mills/kWh), Forecast Capacity Rate will be $0.96 per

kilowatt per month ($/kW-mo).

The existing BCP firm power Base Charge is based on an Annual

Revenue Requirement of $45,196,960, consisting of an Energy Dollar of

$23,460,351 and a Capacity Dollar of $21,736,609. The existing BCP

forecast energy rate is 6.12 mills/kWh and forecast capacity rate is

$0.93/kW-mo.

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 proposed charges/rates for approval on a final

basis by the Deputy Secretary of DOE pursuant to Section 13.13 of the

BCP Implementation Agreement.

The power rates for the BCP are established pursuant to the

Department of Energy Organization Act (42 U.S.C. 7101 et seq.), the

Reclamation Act of 1902 (43 U.S.C. 391 et seq.), as amended and

supplemented by subsequent

[[Page 25665]]

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 (43

U.S.C. 620 et seq.), the Boulder Canyon Project Act (43 U.S.C. 617 et

seq.), the Boulder Canyon Project Adjustment Act (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 (10 CFR Part 904) published in

the Federal Register at 51 FR 43124 on November 28, 1986, the

Procedures for Public Participation in Power and Transmission Rate

Adjustments and Extensions (10 CFR Part 903) published in the Federal

Register at 50 FR 37837 on September 18, 1985, and the DOE financial

reporting policies, procedures, and methodology (DOE Order No. RA

6120.2 dated September 20, 1979).

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 power 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 FERC.

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 energy and capacity are

and will be made available for inspection and copying at Western's

Desert Southwest Customer Service Regional office, 615 South 43rd

Avenue, Phoenix, Arizona 85005.

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 (NEPA), 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 10, 1996.

J. M. Shafer,

Administrator.

[FR Doc. 96-12827 Filed 5-21-96; 8:45 am]

BILLING CODE 6450-01-P