Notice of Robert D. Willis Proposed Power Rate Change

DEPARTMENT OF ENERGY

Southwestern Power Administration

Notice of Robert D. Willis Proposed Power Rate Change

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Public Review and Comment Period.

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SUMMARY: The Administrator, Southwestern, has prepared Current and

Revised 1997 Power Repayment Studies for the Robert D. Willis (Willis)

project which show the need for an increase in annual revenues required

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

was the result of an increase in estimated Operations and Maintenance

costs by Corps of Engineers and the increased amount of large

maintenance items estimated for Willis. 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 increase annual revenues approximately 13.5 percent from $266,928

to $302,928 beginning January 1, 1998.

DATES: The consultation and comment period will begin on the date of

publication of this Federal Register and will end November 10, 1997.

1. Public Information Forum--October 2, 1997, 9:30 a.m., Central Time

in Tulsa, OK

2. Public Comment Forum--October 29, 1997, 1:30 p.m., Central Time in

Tulsa, OK

Southwestern is only conducting a 45 day public notice and comment

period (10 CFR 903.14(d)) since the Willis project is considered a

minor adjustment. In addition, this project has a single hydroelectric

power customer and that customer has been notified of the proposed rate

increase. It is anticipated that any comments from the customer or

other interested parties will be developed well within the 45 day

period provided.

ADDRESSES: The Forums will be held in Southwestern's offices, Suite

1600, Williams Center Tower I, One West Third Street, Tulsa, Oklahoma

74103. Ten copies of the written comments should be submitted to the

Assistant Administrator, Southwestern Power Administration, U.S.

Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101-1619.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant

Administrator, Office of Corporate Operations, Southwestern Power

[[Page 49977]]

Administration, U.S. Department of Energy, PO Box 1619, Tulsa, Oklahoma

74101, (918) 595-6696.

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

an Act of the U.S. Congress, through the Department of Energy

Organization Act, Pub. L. 95-91, dated August 4, 1977, and Southwestern

Power Administration'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 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. The SRMPA contract is for a

period of 50 years as a result of SRMPA's 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

$266,928. The study indicated that maintaining the current rate will

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

the Corps of Engineers increase of estimated Operations and Maintenance

cost of the Willis Project allocated from the Sam Rayburn Project. The

Revised Power Repayment Study for the isolated Willis project shows

that a increase of $36,000 (a 13.5 percent increase) annually will

satisfy repayment criteria. This increase would change annual revenues

produced by the Willis Project from $266,928 to $302,928 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, submit your request to: Mr. Forrest E. Reeves,

Assistant Administrator, Office of Corporate Operations, PO Box 1619,

Tulsa, OK 74101, (918) 595-6696.

A Public Information Forum is scheduled to be held October 2, 1997.

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 p.m., Central Time, Tuesday, September 30,

1997, 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 October 29, 1997. 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

p.m., Central Time, Friday, October 24, 1997, 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, for a fee, directly from the transcribing service.

Copies of all documents introduced will be available from Southwestern

upon request, also for a fee. Written comments on the proposed rates

for the project are due on or before 45 days from publication. Written

comments should be submitted to the Assistant Administrator,

Southwestern Power Administration, U.S. Department of Energy, PO 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 subsequently 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 15th day of September 1997.

Michael A. Deihl,

Administrator.

[FR Doc. 97-25334 Filed 9-23-97; 8:45 am]

BILLING CODE 6450-01-P