Sam Rayburn Dam Project Power Rate

Federal RegisterOct 6, 1999

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DEPARTMENT OF ENERGY

Southwestern Power Administration

Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of power rate extension.

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SUMMARY: The Secretary of Energy, acting under the authorities as

implemented in 10 CFR 903.22(h) and 903.23(a)(3), has approved and

placed into effect on an interim basis Rate Order No. SWPA-40.

SUPPLEMENTARY INFORMATION: Southwestern Power Administration

(Southwestern) currently markets 2.2 million kilowatts of power from 24

multiple-purpose reservoir projects, in all or portions of the states

of Arkansas, Kansas, Louisiana, Missouri, Oklahoma and Texas, with

power facilities constructed and operated by the U.S. Army Corps of

Engineers. The Integrated System, comprised of 22 of the projects, is

interconnected through a transmission system presently consisting of

138-kV and 161-kV high-voltage transmission lines, 69-kV transmission

lines, and numerous bulk power substations and switching stations. In

addition, contractual transmission arrangements provide for integration

of other projects into the system.

The remaining two projects, Sam Rayburn Dam and Robert Douglas

Willis, are isolated hydraulically and electrically from the

Southwestern transmission system, and their power is marketed under

separate contracts through which the customer purchases

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the entire power output of the project at the dam. A separate Power

Repayment Study (PRS) is prepared for each isolated project.

The existing rate schedule for the Sam Rayburn Dam Project was

confirmed and approved on a final basis by the Federal Energy

Regulatory Commission (FERC) on December 7, 1994, for the period

October 1, 1994, through September 30, 1998. The Deputy Secretary of

Energy extended the existing rate schedule for a one year period,

through September 30, 1999. The FY 1999 Sam Rayburn Dam Project PRS

indicates the need for a rate adjustment of $4,692 annually, or 0.2

percent.

Pursuant to implementing authority in 10 CFR 903.22(h) and

903.23(a)(3), the Secretary of Energy may extend a FERC-approved rate

on an interim basis. The Southwestern Administrator, published notice

in the Federal Register on June 29, 1999, 64 FR 34797, announcing a 30-

day period for public review and comment concerning the proposed

interim rate extension. Written comments were accepted through July 29,

1999. In a letter dated July 27, 1999, a Sam Rayburn Dam Electric

Cooperative (SRDEC) official stated that SRDEC has no objection to the

proposed rate extension. No other comments were received.

Discussion

The existing Sam Rayburn Dam Project rate is based on the FY 1994

PRS. PRSs have been completed on the Sam Rayburn Dam Project each year

since approval of the existing rates. Rate changes identified by the

PRSs since that period have indicated the need for minimal rate

increases or decreases. Since the revenue changes reflected by the PRSs

were within the plus-or-minus two percent Rate Adjustment Threshold

established by Southwestern's Administrator on June 23, 1987, these

rate adjustments were deferred in the best interest of the government

and provided for the next year's PRS to determine the appropriate level

of revenues needed for the next rate period.

The FY 1999 PRS indicates the need for an annual revenue increase

of 0.2 percent. As has been the case since the existing rate was

approved, the FY 1999 rate adjustment falls within Southwestern's plus-

or-minus two percent Rate Adjustment Threshold and would normally be

deferred. However, the existing rate expires on September 30, 1999.

Consequently, Southwestern proposes to extend the existing rate for a

one-year period ending September 30, 2000, on an interim basis under

the implementation authorities noted in 10 CFR 903.22(h) and

903.23(a)(3).

Southwestern continues to make significant progress toward

repayment of the Federal investment in the Sam Rayburn Dam Project.

Through FY 1998, cumulative amortization for the Sam Rayburn Dam

Project was $12,339,699, which represents approximately 48 percent of

the $25,734,878 Federal investment. Repayment has increased almost 34

percent since the existing rate was placed in effect.

Information regarding this rate extension, including studies and

other supporting material, is available for public review and comment

in the offices of Southwestern Power Administration, Suite 1400, One

West Third Street, Tulsa, Oklahoma 74103.

Order

In view of the foregoing and pursuant to the authorities granted in

10 CFR 903.22(h) and 903.23(a)(3), I hereby extend on an interim basis,

for the period of one year, effective October 1, 1999, the current

FERC-approved Sam Rayburn Dam Project rate for the sale of power and

energy.

Dated: September 15, 1999.

Bill Richardson,

Secretary.

[Rate Order No. SWPA-40]

Order Approving Extension of Power Rate on an Interim Basis

October 1, 1999.

In the matter of: Southwestern Power Administration--Sam Rayburn

Dam Project Rate .

Pursuant to Sections 302(a) and 301(b) of the Department of Energy

Organization Act, Pub. L. 95-91, the functions of the Secretary of the

Interior and the Federal Power Commission under Section 5 of the Flood

Control Act of 1944, 16 U.S.C. 825s, for the Southwestern Power

Administration (Southwestern) were transferred to and vested in the

Secretary of Energy. By Delegation Order No. 0204-108, effective

December 14, 1983, 48 FR 55664, the Secretary of Energy delegated to

the Deputy Secretary of Energy on a non-exclusive basis the authority

to confirm, approve and place into effect on an interim basis power and

transmission rates, and delegated to the Federal Energy Regulatory

Commission (FERC) on an exclusive basis the authority to confirm,

approve and place in effect on a final basis, or to disapprove power

and transmission rates. Amendment No. 1 to Delegation Order No. 0204-

108, effective May 30, 1986, 51 FR 19744, revised the delegation of

authority to confirm, approve and place into effect on an interim basis

power and transmission rates by delegating such authority to the Under

Secretary of Energy rather than the Deputy Secretary of Energy. This

delegation was reassigned to the Deputy Secretary of Energy by

Department of Energy (DOE) Notice 1110.29, dated October 27, 1988, and

clarified by Secretary of Energy Notice SEN-10-89, dated August 3,

1989, and subsequent revisions. By Amendment No. 2 to Delegation Order

No. 0204-108, effective August 23, 1991, 56 FR 41835, the Secretary of

the Department of Energy revised Delegation Order No. 0204-108 to

delegate to the Assistant Secretary, Conservation and Renewable Energy,

the authority which was previously delegated to the Deputy Secretary in

that Delegation Order. By Amendment No. 3 to Delegation Order No. 0204-

108, effective November 10, 1993, the Secretary of Energy re-delegated

to the Deputy Secretary of Energy, the authority to confirm, approve

and place into effect on an interim basis power and transmission rates

of the Power Marketing Administrations. By notice dated April 15, 1999,

the Secretary of Energy rescinded the authority of the Deputy Secretary

of Energy under Delegation Order 0204-108. This rate order is issued by

the Secretary of Energy pursuant to Section 642 of the Department of

Energy Organization Act.

This is an interim rate extension. It is made pursuant to the

authorities as implemented in 10 CFR 903.22(h) and 903.23(a)(3).

Background

Southwestern currently markets for 2.2 million kilowatts of power

from 24 multiple-purpose reservoir projects, in the states of Arkansas,

Kansas, Louisiana, Missouri, Oklahoma and Texas, with power facilities

constructed and operated by the U.S. Army Corps of Engineers. The

Integrated System, comprised of 22 of the projects, is interconnected

through a transmission system presently consisting of 138-kV and 161-kV

high-voltage transmission lines, 69-kV transmission lines, and numerous

bulk power substations and switching stations. In addition, contractual

transmission arrangements provide for integration of other projects

into the system.

The remaining two projects, Sam Rayburn Dam and Robert Douglas

Willis, are isolated hydraulically and electrically from the

Southwestern transmission system, and their power is marketed under

separate contracts through which the customer purchases the entire

power output of the project at

[[Page 54295]]

the dam. A separate Power Repayment Study (PRS) is prepared for each

isolated project.

The existing rate schedule for the Sam Rayburn Dam Project was

confirmed and approved on a final basis by the FERC on December 7,

1994, for the period October 1, 1994, through September 30, 1998. The

rate was extended on an interim basis by the Deputy Secretary of

Energy, who had authority at that time pursuant to Delegation Order

0204-108, for a one-year period, October 1, 1998, through September 30,

1999. The FY 1999 Sam Rayburn Dam Project PRS indicates the need for a

rate adjustment of $4,692 annually, or 0.2 percent.

Pursuant to implementing authority in 10 CFR 903.22(h) and

903.23(a)(3), the Secretary of Energy may extend a FERC-approved rate

on an interim basis. The Southwestern Administrator, published notice

in the Federal Register on June 29, 1999, 64 FR 34797, announcing a 30-

day period for public review and comment concerning the proposed

interim rate extension. In addition, an informal meeting was held with

customer representatives in April 1999. Written comments were accepted

through July 29, 1999. One comment was received. This comment stated no

objection to the proposed interim extension.