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 1997 annual rate adjustment process for Fiscal Year

1998 Rates 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

(FERC) on April 19, 1996. The existing rate schedule was placed into

effect on November 1, 1995. The power repayment spreadsheet study

indicates the proposed Base Charge herein 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, 1997.

DATES: Submit comments on or before August 5, 1997. The forums dates

are:

1. Public information forum, May 15, 1997, 9:30 a.m.

2. Public comment forum, June 12, 1997, 9:30 a.m.

ADDRESSES: Written comments should be sent to Western Area Power

Administration, Desert Southwest Regional Office, 615 South 43rd

Avenue, Phoenix, Arizona 85009. The public forums at the Desert

Southwest Regional Office will be held in Conference rooms 2 and 3.

FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Regional

Manager, (602) 352-2453 or Mr. Anthony H. Montoya, Assistant Regional

Manager, Power Marketing, (602) 352-2789.

SUPPLEMENTARY INFORMATION: The proposed Base Charge for BCP firm power

is based on an Annual Revenue Requirement of $43,241,130. The Base

Charge consists of an Energy Dollar of $22,408,332 and a Capacity

Dollar of $20,832,797. The Forecast Energy Rate will be 4.9785 mills/

kilowatthour (mills/kWh); Forecast Capacity Rate will be $0.8898 per

kilowatt per month ($/kW-mo).

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

Revenue

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Requirement of $44,437,488, consisting of an Energy Dollar of

$22,976,824 and a Capacity Dollar of $21,460,664. The existing BCP

Forecast energy rate is 5.28 mills/kWh and forecast capacity rate is

$0.92/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 Rate Order No. WAPA-

70.

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 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 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 (Secretary)

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 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 Regional

Office, 615 South 43rd Avenue, Phoenix, Arizona 85009.

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 this action is categorically

excluded from the preparation of an environmental assessment or an

environmental impact statement.

Dated: April 29, 1997.

J. M. Shafer,

Administrator

[FR Doc. 97-11849 Filed 5-6-97; 8:45 am]

BILLING CODE 6450-01-P