Pick-Sloan Missouri Basin Program-Eastern DivisionNotice of Order Confirming and Approving an Extension of the Firm Power Service and Firm Peaking Power Service Rates for Rate Order No. WAPA-83

DEPARTMENT OF ENERGY

Western Area Power Administration

Pick-Sloan Missouri Basin Program-Eastern Division--Notice of

Order Confirming and Approving an Extension of the Firm Power Service

and Firm Peaking Power Service Rates for Rate Order No. WAPA-83

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: This action is to extend the existing Pick-Sloan Missouri

Basin Program-Eastern Division (P-SMBP-ED) firm power service and firm

peaking power service rates, Rate Order No. WAPA-60, through January

31, 2001. The existing firm power service and firm peaking power

service rates will expire January 31, 1999. This notice of an extension

of rates is issued pursuant to 10 CFR 903.23. Rate Order No. WAPA-60 is

extended under Rate Order No. WAPA-83.

FOR FURTHER INFORMATION CONTACT: Mr. Robert F. Riehl, Rates Manager,

Upper Great Plains Customer Service Region, Western Area Power

Administration, PO Box 35800, Billings, MT 59107-5800, telephone (406)

247-7388, or e-mail ([email protected]).

SUPPLEMENTARY INFORMATION: 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 the

Western Area Power Administration (Western); (2) the authority to

confirm, approve, and place such rates into effect on an interim basis

to the Deputy Secretary of Energy; and (3) the authority to confirm,

approve, and place into effect on a final basis, to remand, or to

disapprove such rates to the Federal Energy Regulatory Commission

(FERC).

Pursuant to Delegation Order No. 0204-108 and existing Department

of Energy procedures for public participation in power rate adjustments

at 10 CFR part 903, Western's P-SMBP-ED firm power service and firm

peaking power service rates were submitted to FERC for confirmation and

approval on January 20, 1994. On July 14, 1994, in Docket No. EF94-

5031-000 at 68 FERC para. 62,040, FERC issued an order confirming,

approving, and placing into effect on a final basis the firm power

service and firm peaking power service rates for the P-SMBP-ED. The

rates, Rate Order No. WAPA-60, were approved for the 5-year period

beginning February 1, 1994, and ending January 31, 1999.

Western proposed to extend the existing rate of $3.20/kilowattmonth

for capacity and the rate of 8.32 mills/kilowatthour for energy. The

existing rates are sufficient to recover project expenses (including

interest) and capital requirements through January 31, 2001. Increased

revenue from good hydrologic conditions and lower operation and

maintenance expenses over the cost-evaluation period have made this

possible. For the Pick-Sloan Missouri Basin Program, the ratesetting

study projected the deficit to peak at $178 million in fiscal year (FY)

1994 and to be repaid in FY 2002. The deficit actually peaked at $171

million in FY 1993 and was totally repaid in FY 1997. The total revenue

requirement of $135.2 million is sufficient to cover the expenses and

capital requirements through January 31, 2001. Western, therefore, has

decided to extend the

[[Page 58035]]

existing rates pursuant to 10 CFR 903.23.

In accordance with 10 CFR 903.23(a)(2), Western did not have a

consultation and comment period. The notice of an extension of the firm

power service and firm peaking power service rates was published in the

Federal Register on August 18, 1998. Western is submitting the notice

of rate order 30 days after that publication.

Following review of Western's proposal within the Department of

Energy, I approved Rate Order No. WAPA-83, which extends the existing

P-SMBP-ED firm power service and firm peaking power service Rate

Schedules P-SED-F6 and P-SED-FP6 on an interim basis through January

31, 2001.

Dated: October 16, 1998.

Elizabeth A. Moler,

Deputy Secretary.

This rate was established pursuant to section 302(a) of the

Department of Energy Organization Act (42 U.S.C. 7152(a)), through

which the power marketing functions of the Department of the Interior

and the Bureau of Reclamation under the Reclamation Act of 1902 (43

U.S.C. 371 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)), were transferred to and vested in the

Secretary of Energy (Secretary).

By Amendment No. 3 to Delegation Order No. 0204-108, published

November 10, 1993 (58 FR 59716), the Secretary delegated (1) the

authority to develop long-term power and transmission rates on a

nonexclusive basis to the Administrator of the Western Area Power

Administration (Western); (2) the authority to confirm, approve, and

place such rates into effect on an interim basis to the Deputy

Secretary of Energy; and (3) the authority to confirm, approve, and

place into effect on a final basis, to remand, or to disapprove such

rates to the Federal Energy Regulatory Commission (FERC). This rate

extension is issued pursuant to the Delegation Order and the Department

of Energy rate extension procedures at 10 CFR part 903.

Background

In the order issued July 14, 1994, in Docket No. EF94-5031-000 at

68 FERC para. 62,040, FERC confirmed, approved, and placed in effect on

a final basis the firm power service and firm peaking power service

rates for the Pick-Sloan Missouri Basin Program-Eastern Division, Rate

Order No. WAPA-60. The rates were approved for the period from February

1, 1994, through January 31, 1999.

Discussion

The existing Pick-Sloan Missouri Basin Program-Eastern Division (P-

SMBP-ED) rate is $3.20/kilowattmonth for capacity and 8.32 mills/

kilowatthour for energy. The existing rates are sufficient to recover

project expenses (including interest) and capital requirements through

January 31, 2001. Increased revenue from good hydrologic conditions and

lower operation and maintenance expenses over the cost-evaluation

period have made this possible. For the Pick-Sloan Missouri Basin

Program, the ratesetting study projected the deficit to peak at $178

million in fiscal year (FY) 1994 and to be repaid in FY 2002. The

deficit actually peaked at $171 million in FY 1993 and was totally

repaid in FY 1997. The total revenue requirement of $135.2 million is

sufficient to cover the expenses and capital requirements through

January 31, 2001.

In accordance with 10 CFR 903.23(a)(2), Western did not have a

consultation and comment period. The notice of an extension of the firm

power service and firm peaking power service rates was published in the

Federal Register on August 18, 1998. Western is submitting the notice

of rate order 30 days after that publication.

Order

In view of the foregoing and pursuant to the authority delegated to

me by the Secretary, I hereby extend for a period effective February 1,

1999, through January 31, 2001, the existing Rate Schedules P-SED-F6

for firm power service and P-SED-FP6 for firm peaking power service for

the Pick-Sloan Missouri Basin Program-Eastern Division.

Dated: October 16, 1998.

Elizabeth A. Moler,

Deputy Secretary.

[FR Doc. 98-28912 Filed 10-28-98; 8:45 am]

BILLING CODE 6450-01-P