# Notice of Robert D. Willis Proposed Power Rate Change

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URL: https://www.frixlaw.com/law-library/documents/fr%3A97-25334

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** September 24, 1997
- **Citation:** 62 FR 49976

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-25334. Public record. Not legal advice.
