Notice of Proposed Power RateRobert D. Willis

DEPARTMENT OF ENERGY

Notice of Proposed Power Rate--Robert D. Willis

AGENCY: Southwestern Power Administration (Southwestern), DOE.

ACTION: Notice for public review and comment.

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SUMMARY: The Administrator, Southwestern, has prepared Current and

Revised 1996 Power Repayment Studies for the Robert D. Willis (Willis)

project which show the need for a decrease in annual revenues required

to meet cost recovery criteria. The decrease in the revenues required

will result from a change in the allocation of costs due to the remote

operation of the Whitney Project from the Sam Rayburn (Rayburn) Project

beginning in FY 1997. The existing power plant operators' costs will be

allocated among three projects rather than just Willis and Rayburn. The

Administrator has also developed a proposed rate schedule for the

isolated Willis project to recover the required revenues. The proposed

rate for the Willis project would decrease annual revenues

approximately 9.3 percent from $294,312 to $266,928 beginning October

1, 1996.

DATES: A Public Information Forum has been scheduled for July 16, 1996,

in Tulsa Oklahoma. A Public Comment Forum will be held July 30, 1996,

in Tulsa, Oklahoma. Written comments are due on or before (insert 30

days from the date of Federal Register publication). Southwestern is

conducting a 30 day public notice and comment period (10 CFR

903.14(d)). This public participation period is for a minor rate

adjustment which does not require any comment period to exceed 30 days.

In addition, this project has a single hydroelectric power customer and

that customer directly impacted has been informed of the proposed rate

decrease. It is anticipated that any comments from the customer will be

developed well within the 30 day period.

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) 595-6628.

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by

an Act of the U.S. Congress, Department of Energy Organization Act, P.

L. 95-91, dated August 4, 1977, and Southwestern's power marketing

activities were transferred from the Department of the Interior to the

Department of Energy, effective October 1, 1977.

Southwestern markets power from 24 multiple-purpose reservoir

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

Army Corps of Engineers. 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 an Integrated System and are interconnected through

Southwestern's transmission system and exchange agreements with other

utilities. The Sam Rayburn Dam project, located in eastern Texas, is

not interconnected with Southwestern's Integrated System hydraulically,

electrically, or financially. Instead, the power produced by the Sam

Rayburn Dam project is marketed by Southwestern as an isolated project

under a contract through which the customer purchases the entire power

output of the project at the dam. The Willis project, located on the

Neches River downstream from the Sam Rayburn Dam, consists of two 4,000

kilowatt hydroelectric generating units. It, like the Sam Rayburn Dam

project, is

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marketed as an isolated project under a contract through which the

customer, Sam Rayburn Municipal Power Agency (SRMPA), receives the

entire output of the project for a period of 50 years as a result of

funding the construction of the hydroelectric facilities at the

project. A separate power repayment study is prepared for each project

which has a special rate based on its isolated project determination.

Following Department of Energy Order Number RA 6120.2, the

Administrator, Southwestern, prepared a current power repayment study

for the Robert D. Willis project using the existing annual rate of

$294,312. The study indicated that maintaining the current rate will

create a revenue surplus for the project. This is primarily a result of

adding the remote operation of the Whitney Project, beginning in FY

1997, by the Corps of Engineers from the Sam Rayburn Project. The

Revised Power Repayment Study for the isolated Willis project shows

that a decrease of $27,384 (a 9.3 percent decrease) annually will

satisfy repayment criteria. This decrease would change annual revenues

produced by the Willis Project from $294,312 to $266,928 and satisfy

the present financial criteria for repayment of the project.

Opportunity is presented for customers and interested parties to

receive copies of the studies and proposed rate schedule for the Willis

project. If you desire a copy of the Repayment Study Data Package for

the Willis project, please do not hesitate to submit your request to:

Mr. George C. Grisaffe, Assistant Administrator, Office of

Administration and Rates, P.O. Box 1619, Tulsa, OK 74101, (918) 595-

6628.

A Public Information Forum is scheduled to be held at 4:30 p.m.,

central time (c.t.) Tuesday, July 16, 1996, in Southwestern's offices,

room 1600, Williams Center Tower 1, One West Third Street, Tulsa,

Oklahoma. The Forum is 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 the 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 4:00 p.m., c.t., Friday, July 12, 1996, 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 is scheduled to be held at 1:30 p.m., c.t.,

Tuesday, July 30, 1996, 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 speakers.

The chairman may allow others to speak if time permits. Persons

interested in attending or speaking at the Public Comment Forum should

indicate in writing by 4:00 p.m., c.t., Friday, July 26, 1996, their

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

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

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 the project are due on or

before 30 days from publication. 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, the

Administrator will submit the rate proposals and the Power Repayment

Studies for the Willis project, in support of the proposed rates, to

the Deputy Secretary of Energy 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 24th day of June, 1996.

Frances R. Gagan,

Acting Administrator.

[FR Doc. 96-17119 Filed 7-3-96; 8:45 am]

BILLING CODE 6450-01-P