[Federal Register Volume 65, Number 137 (Monday, July 17, 2000)]
[Notices]
[Page 44044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18002]



[[Page 44044]]

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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--Notice of Order Confirming and Approving 
an Extension of the Firm Electric Service Rate for Rate Order No. WAPA-
89

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: This action is to extend the existing Loveland Area Projects' 
(LAP) firm electric service rate, Rate Order No. WAPA-51, through 
September 30, 2003. The existing firm electric service rate will expire 
January 31, 2001. This notice of an extension of the rate is issued 
pursuant to 10 CFR 903.23. Rate Order No. WAPA-51, previously extended 
under Rate Order No. WAPA-82, is further extended under Rate Order 
WAPA-89.

FOR FURTHER INFORMATION CONTACT: Mr. Daniel T. Payton, Rates Manager, 
Rocky Mountain Customer Service Region, Western Area Power 
Administration, P.O. Box 3700, Loveland, CO 80539-3003, (970) 461-7442, 
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); and (2) 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). In Delegation Order No. 0204-172, effective November 24, 1999, 
the Secretary of Energy delegated the authority to confirm, approve, 
and place such rates into effect on an interim basis to the Deputy 
Secretary.
    Pursuant to Delegation Order No. 0204-108 and existing Department 
of Energy procedures for public participation in firm electric service 
rate adjustments at 10 CFR part 903, Western's LAP firm electric 
service rate was submitted to FERC for confirmation and approval on 
January 10, 1994. On July 14, 1994, in Docket No. EF94-5181-000 at 68 
FERC para. 62,040, FERC issued an order confirming, approving, and 
placing into effect on a final basis the firm electric service rate for 
LAP. LAP consists of the Fryingpan-Arkansas Project and the Pick-Sloan 
Missouri Basin Program, Western Division. The rate set forth in Rate 
Order No. WAPA-51 was approved for a 5-year period beginning February 
1, 1994, and ending January 31, 1999. On October 16, 1998, upon signing 
Rate Order No. WAPA-82, the Deputy Secretary extended the existing rate 
for a 2-year period beginning February 1, 1999, through January 31, 
2001. On January 31, 2001, the LAP firm electric rate will expire.
    Western proposed to extend the existing rate of $2.85/kilowattmonth 
for capacity and 10.85 mills/kilowatthour for energy which is 
sufficient to recover the LAP annual revenue requirement of $44.3 
million. This requirement includes project expenses, interest, and 
capital requirements through September 30, 2003. Increased revenue from 
good hydrologic conditions and lower operation and maintenance expenses 
over the cost evaluation period have made this possible. Western, 
therefore, has decided to extend the existing rate 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 proposed extension of 
the firm electric service rate was published in the Federal Register on 
March 29, 2000.
    Following review of Western's proposal within the Department of 
Energy, I approved Rate Order No. WAPA-89, which extends the existing 
Loveland Area Projects' firm electric service Rate Schedule L-F4 on an 
interim basis through September 30, 2003.

    Dated: July 10, 2000.
T.J. Glauthier,
Deputy Secretary.

Department of Energy Deputy Secretary

    In the Matter of: Western Area Power Administration Rate 
Extension for Loveland Area Projects Firm Electric Service Rate.
    Rate Order No. WAPA-89

Order Confirming and Approving an Extension of the Loveland Area 
Projects' Firm Electric Service Rate

(________, 2000)

    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 Secretary of the 
Department of the Interior and the Bureau of Reclamation under the 
Reclamation Act of 1902 (ch. 1093, 32 stat. 388), 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); and (2) 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). In 
Delegation Order No. 0204-172, effective November 24, 1999, the 
Secretary delegated the authority to confirm, approve, and place 
such rates into effect on an interim basis to the Deputy Secretary.

Background

    In the order issued July 14, 1994, in Docket No. ER94-5181-000 
at 68 FERC para. 62,040, FERC confirmed, approved, and placed into 
effect on a final basis Rate Order No. WAPA-51 for the firm electric 
service rate for the Loveland Area Projects (LAP). The rate was 
approved for the period from February 1, 1994, through January 31, 
1999. On October 16, 1998, upon signing Rate Order No. WAPA-82, the 
Deputy Secretary extended the existing rate for a 2-year period 
beginning February 1, 1999, through January 31, 2001. On January 31, 
2001, the LAP firm electric rate will expire. This makes it 
necessary to extend the current rate pursuant to 10 CFR part 903. 
With this approval, Rate Order No. WAPA-51, previously extended 
under Rate Order No. WAPA-82, will be extended under Rate Order No. 
WAPA-89.

Discussion

    The LAP consists of the Pick-Sloan Missouri Basin Program, 
Western Division, and the Fryingpan-Arkansas Project. The existing 
LAP rate of $2.85/kilowattmonth for capacity and 10.85 mills/
kilowatthour for energy is sufficient to recover the LAP annual 
revenue requirement of $44.3 million. This requirement includes 
project expenses, interest, and capital requirements through 
September 30, 2003. Increased revenue from good hydrologic 
conditions and lower operation and maintenance expenses over the 
cost evaluation period have made this possible.
    In accordance with 10 CFR 903.23(a)(2), Western did not have a 
consultation and comment period. The notice of proposed extension of 
the firm electric service rate was published in the Federal Register 
on March 29, 2000.

Order

    In view of the foregoing and pursuant to the authority delegated 
to me by the Secretary, I hereby extend for the period effective 
February 1, 2001, through September 30, 2003, the existing Rate 
Schedule L-F4 on an interim basis for firm electric service for the 
Loveland Area Projects.

    Dated: July 10, 2000.
T.J. Glauthier,
Deputy Secretary.
[FR Doc. 00-18002 Filed 7-14-00; 8:45 am]
BILLING CODE 6450-01-P