[Federal Register Volume 67, Number 187 (Thursday, September 26, 2002)]
[Notices]
[Pages 60655-60656]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 02-24425]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Parker-Davis Project--Extension of the Rate Methodology for Firm
Power Service and Firm and Nonfirm Transmission Service--Rate Order No.
WAPA-98
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Rate Order.
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SUMMARY: This action is to extend the existing Parker-Davis Project
(Parker-Davis) rate methodology for determining the firm power service
rate and the firm and nonfirm point-to-point transmission service
rates, established under Rate Order No. WAPA-75, through September 30,
2004. The existing Parker-Davis rate methodology will expire September
30, 2002.
FOR FURTHER INFORMATION CONTACT: Mr. Todd Statler, Financial Analyst,
Desert Southwest Customer Service Region, Western Area Power
Administration, PO Box 6457, Phoenix, AZ 85005-6457, (602) 352-2781, or
e-mail statler@wapa.gov.
SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00, effective
December 6, 2001, the Secretary of Energy delegated (1) the authority
to develop long-term power and transmission rates on a nonexclusive
basis to the Administrator of 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, 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 applicable Delegation Orders and existing Department of
Energy (DOE) procedures for public participation in power and
transmission rate adjustments in 10 CFR part 903, Western's Parker-
Davis rate methodology for firm power service and firm and nonfirm
point-to-point transmission service was submitted to FERC for
confirmation and approval on November 19, 1997. On March 10, 1998, in
Docket No. EF98-5041-000, at 82 FERC ] 62,164, FERC issued an order
confirming, approving, and placing in effect on a final basis the
Parker-Davis rate methodology for firm power service and firm and
nonfirm point-to-point transmission service. The rate methodology set
forth in Rate Order No. WAPA-75 was approved for the period beginning
November 1, 1997, and ending September 30, 2002.
On September 30, 2002, Western's Parker-Davis rate methodology for
firm power service and firm and nonfirm point-to-point transmission
service will expire. Western has proposed that the existing Parker-
Davis rate methodology be extended pursuant to 10 CFR part 903.23.
The Secretary of Energy is extending the existing Parker-Davis rate
methodology that is used each Fiscal Year (FY) to calculate the firm
power service rates for capacity and energy (Rate Schedule PD-F6), the
firm point-to-point transmission service rate (Rate Schedule PD-FT6),
the firm point-to-point transmission service rate for delivery of Salt
Lake City Area Integrated Projects Power (Rate Schedule PD-FCT6) and
the nonfirm point-to-point transmission service rate (Rate Schedule PD-
NFT6). The existing Parker-Davis rate methodology collects annual
revenues sufficient to recover annual expenses (including interest) and
capital requirements, thus ensuring repayment of the project within the
cost-recovery criteria set forth in DOE Order RA 6120.2. Under the
existing Parker-Davis rate methodology, the revenue requirements for
generation and transmission are determined annually based on FY
projections in the cost apportionment study. The cost apportionment
study allocates all Parker-Davis expenses and other revenues between
generation and transmission. The revenue requirement for generation
determines the amount of funds to collect through firm power service
rates for capacity and energy. Similarly, the revenue requirement for
transmission determines the amount of funds to collect through firm
point-to-point transmission service rates.
During this extension period of the existing Parker-Davis rate
methodology, Western will initiate a rate adjustment process in
accordance with procedures for public participation in power and
transmission rate adjustments in 10 CFR part 903. Western anticipates
this rate adjustment process to begin when audited financial data for
FY 2001 and FY 2002 becomes available. In the meantime, Western will
continue to conduct informal customer meetings to ensure involvement of
interested parties in the rate process.
In accordance with 10 CFR part 903.23(a)(2), Western did not have a
consultation and comment period and did not hold public information and
comment forums. The notice of proposed extension of the Parker-Davis
rate methodology for firm power service and firm and nonfirm point-to-
point transmission service was published in the Federal Register (67 FR
34702) on May 15, 2002.
Following review of Western's proposal within the Department of
Energy, I approve, in the absence of a Deputy Secretary, Rate Order No.
WAPA-98, which extends the existing Parker-Davis rate methodology for
determining the firm power service rate and the firm and nonfirm point-
to-point transmission service rates through September 30, 2004.
Dated: September 13, 2002.
Spencer Abraham,
Secretary.
Order Confirming and Approving an Extension of the Parker-Davis Project
Rate Methodology for Firm Power Service and Firm and Nonfirm
Transmission Service
This rate methodology was established pursuant to Section 302(a) of
the Department of Energy Organization Act (42 U.S.C. 7152(a)),
[[Page 60656]]
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 Delegation Order No. 00-037.00, effective December 6, 2001, 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, 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
extension of rate methodology is issued pursuant to the Delegation
Order and the Department of Energy (DOE) rate extension procedures at
10 CFR part 903.
Background
In the order issued March 10, 1998, in Docket No. EF98-5041-000, at
82 FERC ] 62,164, FERC confirmed, approved, and placed in effect on a
final basis Rate Order No. WAPA-75, the Parker-Davis rate methodology
for firm power service and firm and nonfirm point-to-point transmission
service. The rate methodology set forth in Rate Order No. WAPA-75 was
approved for the period beginning November 1, 1997, and ending
September 30, 2002. On September 30, 2002, the Parker-Davis rate
methodology for firm power service and firm and nonfirm point-to-point
transmission service will expire. This makes it necessary to extend the
existing Parker-Davis rate methodology pursuant to 10 CFR part 903.
With this approval, Rate Order No. WAPA-75 will be extended under Rate
Order No. WAPA-98.
Discussion
Western proposes to extend the existing Parker-Davis rate
methodology used each Fiscal Year (FY) to calculate the firm power
service rates for capacity and energy (Rate Schedule PD-F6), the firm
point-to-point transmission service rate (Rate Schedule PD-FT6), the
firm point-to-point transmission service rate for delivery of Salt Lake
City Area Integrated Projects Power (Rate Schedule PD-FCT6) and the
nonfirm point-to-point transmission service rate (Rate Schedule PD-
NFT6). The existing Parker-Davis rate methodology provides for
collecting annual revenues sufficient to recover annual expenses
(including interest) and capital requirements, thus ensuring repayment
of the project within the cost-recovery criteria set forth in DOE Order
RA 6120.2. Under the existing Parker-Davis rate methodology, the
revenue requirements for generation and transmission are determined
annually based on FY projections in the cost apportionment study. The
cost apportionment study allocates all Parker-Davis expenses and other
revenues between generation and transmission. The revenue requirement
for generation determines the amount of funds to collect through firm
power service rates for capacity and energy. Similarly, the revenue
requirement for transmission determines the amount of funds to collect
through firm point-to-point transmission service.
During this extension period of the existing Parker-Davis rate
methodology, Western will initiate a rate adjustment process in
accordance with procedures for public participation in power and
transmission rate adjustments in 10 CFR part 903. Western anticipates
this rate adjustment process to begin when audited financial data for
FY 2001 and FY 2002 becomes available. In the meantime, Western will
continue to conduct informal customer meetings to ensure involvement of
interested parties in the rate process.
In accordance with 10 CFR 903.23(a)(2), Western did not have a
consultation and comment period and did not hold public information and
comment forums. The notice of proposed extension of the Parker-Davis
rate methodology for firm power service and firm and nonfirm point-to-
point transmission service was published in the Federal Register (67 FR
34702) on May 15, 2002.
Order
In view of the foregoing, I hereby extend for a period effective
October 1, 2002, and ending September 30, 2004, the existing Parker-
Davis rate methodology for determining the firm power service rate and
the firm and nonfirm point-to-point transmission service rates.
Dated: September 13, 2002.
Spencer Abraham,
Secretary.
[FR Doc. 02-24425 Filed 9-25-02; 8:45 am]
BILLING CODE 6450-01-P