Proposed Robert D. Willis Power Rate Change

DEPARTMENT OF ENERGY

Southwestern Power Administration

Proposed Robert D. Willis 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 1999 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

is the result of an increase in the amount of large maintenance items

within the Operations and Maintenance costs estimated by Corps of

Engineers. 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 11.5 percent from $302,928 to $337,932

beginning October 1, 1999.

DATES: Southwestern is conducting this 30 day public notice and comment

period as prescribed by 10 CFR 903.14(d). The consultation and comment

period will begin on the date of publication of this Federal Register

and will end August 11, 1999. The Public Information Forum will be held

(if requested) on July 20, 1999, 1:00 p.m., Central Daylight Time in

Southwestern's offices, Williams Center Tower I, One West Third Street,

Tulsa, Oklahoma 74103.

ADDRESSES: Ten copies of any written comments should be submitted to:

Mr. Forrest E. Reeves, Assistant Administrator, Office of Corporate

Operations, Southwestern Power Administration, U.S. Department of

Energy, P.O. Box 1619, Tulsa, Oklahoma 74101.

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

Administrator, (918) 595-6696, [email protected].

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, P.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

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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

$302,928. This Power Repayment Study, like the previous year's,

includes estimates for both Southwestern's and the Corps' portions of

the unfunded Civil Service Retirement Service and post retirement life/

health costs. 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 Large Maintenance items

included in the estimated Operations and Maintenance cost for the

Willis Project. The Revised Power Repayment Study for the isolated

Willis project shows that an increase of $35,004 (a 11.5 percent

increase) annually will satisfy repayment criteria. This increase would

change annual revenues produced by the Willis Project from $302,928 to

$337,932 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 the information contact

listed above.

A Public Information Forum is scheduled to be held July 20, 1999.

The Public Information 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., Central

Daylight Time, Thursday, July 15, 1999, 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 the 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

August 11, 1999. Written comments should be submitted to the Assistant

Administrator as indicated above.

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 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 28th day of June, 1999.

Michael A. Deihl,

Administrator.

[FR Doc. 99-17656 Filed 7-9-99; 8:45 am]

BILLING CODE 6450-01-P