[Federal Register Volume 65, Number 137 (Monday, July 17, 2000)]
[Notices]
[Pages 44045-44046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18003]
[[Page 44045]]
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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-90
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 September
30, 2003. The existing firm power service and firm peaking power
service rates will expire January 31, 2001. This notice of an extension
of rates is issued pursuant to 10 CFR 903.23. Rate Order No. WAPA-60,
previously extended under Rate Order No. WAPA-83, is further extended
under Rate Order No. WAPA-90.
FOR FURTHER INFORMATION CONTACT: Mr. Robert F. Riehl, Rates Manager,
Upper Great Plains Customer Service Region, Western Area Power
Administration, P.O. 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); 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 of Energy.
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 10, 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 set forth, Rate Order No. WAPA-60, were approved for the 5-year
period beginning February 1, 1994, and ending January 31, 1999. On
October 16, 1998, upon signing Rate Order No. WAPA 83, the Deputy
Secretary extended the existing rates for a 2-year period beginning
February 1, 1999, and ending January 31, 2001.
On January 31, 2001, the P-SMBP-ED firm power service and firm
peaking power service rates will expire.
Western proposed to extend the existing rate of $3.20/kilowattmonth
for capacity and the rate of 8.32 mills/kilowatthour for energy which
are sufficient to recover project expenses, including interest, and
capital requirements through September 30, 2003. Increased revenue from
good hydrologic conditions and effective cost containment efforts have
resulted in lower operation and maintenance expenses over the cost-
evaluation period to make this possible. For the Pick-Sloan Missouri
Basin Program, the rate setting study projected the deficit associated
with the drought starting in 1989 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, with interest, in FY
1997. The total revenue requirement of $135.2 million is sufficient to
cover the expenses and capital requirements through September 30, 2003.
Western, therefore, has decided to extend the 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 March 29, 2000.
Following review of Western's proposal within the Department of
Energy, I approved Rate Order No. WAPA-90, 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 September
30, 2003.
Dated: July 10, 2000.
T.J. Glauthier,
Deputy Secretary.
Department of Energy Deputy Secretary
Rate Order No. WAPA-90
In the Matter of: Western Area Power Administration Extension of
the Firm Power Service and Firm Peaking Power Service Rates for the
Pick-Sloan Missouri Basin Program-Eastern Division
Order Confirming and Approving an Extension of the Pick-Sloan
Missouri Basin Program-Eastern Division Firm Power Service and Firm
Peaking Power Service Rates
This rate extension 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. 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 Rate Order No. WAPA-60, for the firm power service and
firm peaking power service rates for the Pick-Sloan Missouri Basin
Program-Eastern Division (P-SMBP-ED), The rates were approved for the
period from February 1, 1994, through January 31, 1999. On October 16,
1998, upon signing Rate Order No. WAPA-83 the Secretary extended the
existing rates for a 2-year period beginning February 1, 1999, through
January 31, 2001. On January 21, 2001, the P-SMBP-ED firm power service
and firm peaking power service rates will expire. This makes it
necessary to extend the current rates pursuant to 10 CFR part 903. With
this
[[Page 44046]]
approval, Rate Order No. WAPA-60, previously extended under Rate Order
No. WAPA-83, will be extended under Rate Order WAPA-90. A notice of an
extension of the firm power and firm peaking power service rates was
published in the Federal Register on March 29, 2000. Therefore, Western
is extending P-SMBP-ED firm power and firm peaking power service rates
under Rate Order No. WAPA-90.
Discussion
The existing 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 September 30, 2003. Increased revenue from good
hydrologic conditions and effective cost containment efforts have
resulted in lower operation and maintenance expenses over the cost-
evaluation period. For the Pick-Sloan Missouri Basin Program, the rate
setting study projected the deficit associated with the drought
starting in 1989 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, with interest, in FY 1997. The total
revenue requirement of $135.2 million is sufficient to cover the
expenses and capital requirements through September 30, 2003.
In accordance with 10 CFR part 903.23(a)(2), Western did not have a
consultation and comment period. The notice of proposed extension of
the firm power service and firm peaking power service rates 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 a period effective February 1,
2001, and ending September 30, 2003, the existing Rate Schedules P-SED-
F6 for firm power service and P-SED-FP6 on an interim basis for firm
peaking power service for the P-SMBP-ED.
Dated: July 10, 2000.
T.J. Glauthier,
Deputy Secretary.
[FR Doc. 00-18003 Filed 7-14-00; 8:45 am]
BILLING CODE 6450-01-P