[Federal Register Volume 75, Number 21 (Tuesday, February 2, 2010)]
[Notices]
[Pages 5315-5316]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2170]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project--Rate Order No. WAPA-150
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Extension of Rate-Setting Formula and
Adjustment to Base Charge and Rates.
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SUMMARY: This action is a proposal to extend the existing Boulder
Canyon Project (BCP) rate-setting formula and approve the proposed base
charge and rates for FY 2011. Publication of this Federal Register
notice begins the formal process to extend the existing rate-setting
formula and the proposed base charge and rates. The proposed base
charge and rates will provide sufficient revenue to pay all annual
costs, including interest expense, and repayment of required investment
within the allowable period.
DATES: The consultation and comment period begins today and will end
May 3, 2010. Western will present a detailed explanation of the
proposed base charge and rates at a public information forum on April
7, 2010, beginning at 10:30 a.m. MST, Phoenix, Arizona. Western will
accept oral and written comments at a public comment forum on April 21,
2010, beginning at 10:30 a.m. MST, Phoenix, Arizona. Western will
accept written comments any time during the consultation and comment
period.
ADDRESSES: The public information forum and public comment forum will
be held at the Desert Southwest Regional Customer Service Office,
located at 615 South 43rd Avenue, Phoenix, Arizona, on the dates cited
above. Written comments should be sent to Darrick Moe, Regional
Manager, Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, e-mail
MOE@wapa.gov. Written comments may also be faxed to (602) 605-2490,
attention: Jack Murray. Western will post information about the rate
process on its Web site at http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm. Western will post official comments received via
letter, fax, and e-mail to its Web site after the close of the comment
period. Western must receive written comments by the end of the
consultation and comment period to ensure they are considered in
Western's decision process.
As access to Western facilities is controlled, any U.S. citizen
wishing to attend any meeting held at Western must present an official
form of picture identification, such as a U.S. driver's license, U.S.
passport, U.S. Government ID, or U.S. Military ID, at the time of the
meeting. Foreign nationals should contact Western at least 45 days in
advance of the meeting to obtain the necessary form for admittance to
Western.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert
Southwest Customer Service Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602) 605-2442, e-mail
jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: Annual base charge and rates adjustments are
required by Western's existing BCP rate-setting formula methodology.
That methodology was originally approved on an interim basis by the
Deputy Secretary of Energy on October 31,
[[Page 5316]]
1995,\1\ and confirmed by the Federal Energy Regulatory Commission
(FERC) on April 19, 1996,\2\ for a five year period through 2000. The
rate-setting formula was subsequently extended for additional five year
periods in 2001 \3\ and 2006.\4\ Western proposes to extend the
existing rate-setting formula through September 30, 2015, under Rate
Order No. WAPA-150 and Rate Schedule BCP-F8, and approve the proposed
base charge and rates for FY 2011. The proposed base charge and rates
for BCP electric service are designed under the existing rate-setting
formula to recover an annual revenue requirement that includes
investment repayment, interest, operation and maintenance,
replacements, payment to states, visitor services, and uprating program
payments. The total costs are offset by the projected revenue from
water sales, visitor center, water pump energy sales, facilities use
charges, regulation, reactive supply and voltage control, spinning
reserve, miscellaneous leases, and late fees. The annual revenue
requirement is the annual base charge for electric service divided
equally between capacity and energy dollars. Annual energy dollars are
divided by annual energy sales, and annual capacity dollars are divided
by annual capacity sales to determine the proposed energy rate and the
proposed capacity rate.
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\1\ 60 FR 57859 (November 22, 1995).
\2\ 75 FERC ] 62,050.
\3\ 96 FERC ] 61,171 (July 31, 2001).
\4\ 115 FERC ] 61,362 (June 22, 2006).
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The Deputy Secretary of Energy (DOE) approved the extension of the
existing rate-setting formula and Rate Schedule BCP-F7, under Rate
Order No. 120, effective on October 1, 2005, for the period ending
September 30, 2010.\5\
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\5\ FERC confirmed and approved Rate Order No. WAPA-120 in
Docket EF05-5091-000. See United States Department of Energy,
Western Area Power Administration, Boulder Canyon Project, 115 FERC
] 61,362 (June 22, 2006).
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The base charge for fiscal year (FY) 2010 is $70,681,340, the
forecasted energy rate is 9.47 mills per kilowatthour (mills/kWh), the
forecasted capacity rate is $1.76 per kilowattmonth (kWmonth), and the
composite rate is 18.93 mills/kWh.
Under Rate Order No. WAPA-150 and Rate Schedule BCP-F8, the
proposed base charge for FY 2011 will result in an overall composite
rate increase of about 3 percent. The proposed base charge will
increase about 3.22 percent, the proposed forecasted energy rate will
increase about 2.53 percent, and the proposed forecasted capacity rate
will increase about 0.57 percent. The proposed base charge and rates
for BCP electric service are listed in the following table.
Table 1--Electric Service Base Charge and Rates
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Existing base Proposed base
charge and rates charge and rates Percent
October 1, 2009 October 1, 2010 change
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Composite (mills/kWh).......................................... 18.93 19.43 2.64
Base Charge ($)................................................ $70,681,340 $72,959,824 3.22
Energy Rate (mills/kWh)........................................ 9.47 9.71 2.53
Capacity Rate ($/kWmonth)...................................... $1.76 $1.77 0.57
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Legal Authority
Western will hold both a public information forum and a public
comment forum. After review of public comments, Western will take
further action on the proposed base charge and rates and the extension
of rate-setting methodology consistent with 10 CFR part 903.
Western is establishing the electric service base charge and rates
for BCP under the Department of Energy Organization Act (42 U.S.C.
7152); the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended
and supplemented by subsequent laws, particularly section 9(c) of the
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)); and other acts
that specifically apply to the projects involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator, (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy, and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to FERC. Existing Department of Energy procedures
for public participation in power rate adjustments (10 CFR part 903)
were published on September 18, 1985 (50 FR 37835).
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Western initiates or uses to develop the proposed base
charge and rates are available for inspection and copying at the Desert
Southwest Customer Service Regional Office, Western Area Power
Administration, 615 South 43rd Avenue, Phoenix, Arizona. Many of these
documents and supporting information are also available on Western's
Web site at: http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321-4347 et seq.); Council on Environmental Quality
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR
part 1021), Western is in the process of determining whether an
environmental assessment or an environmental impact statement should be
prepared or if this action can be categorically excluded from those.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Dated: January 15, 2010.
Timothy J. Meeks,
Administrator.
[FR Doc. 2010-2170 Filed 2-1-10; 8:45 am]
BILLING CODE 6450-01-P