[Federal Register Volume 77, Number 11 (Wednesday, January 18, 2012)]
[Notices]
[Pages 2533-2535]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-799]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Base Charge and Rates.
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SUMMARY: The Western Area Power Administration (Western), a power
marketing administration within the Department of Energy (DOE), is
proposing an adjustment to the Boulder Canyon Project (BCP) electric
service base charge and rates. The current base charge and rates expire
September 30, 2012, under Rate Schedule BCP-F8. The existing base
charge is being adjusted to ensure it includes all annual costs
including operation, maintenance, replacements, interest expense, and
to repay investment obligations within the required period. The
proposed base charge will provide sufficient revenue to cover all
annual costs and to repay investment obligations within the allowable
period. A detailed rate package that identifies the reasons for the
base charge and rates adjustment will be available in March 2012. The
proposed base charge and rates are scheduled to become effective
October 1, 2012, and will remain in effect through September 30, 2013.
This Federal Register notice initiates the formal process for the
proposed base charge and rates.
DATES: The consultation and comment period will begin today and will
end April 17, 2012. Western will present a detailed explanation of the
proposed base charge and rates at a public information forum March 28,
2012, beginning at 10:30 a.m. Mountain Standard Time (MST), in Phoenix,
Arizona. Western will accept oral and written comments at a public
comment forum April 11, 2012, beginning at 10:30 a.m. MST, at the same
location. 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 Customer Service Regional 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, email
moe@wapa.gov. Written comments may also be faxed to (602) 605-2490,
attention: Jack Murray. Western will post information about the rate
processes on its Web site at http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm. Western will also post official comments received via
letter, fax, and email to this Web site. 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
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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 30 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, (602) 605-2442, email
jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The proposed base charge and rates for BCP
electric service are designed to recover an annual revenue requirement
that includes the investment repayment, interest, operation and
maintenance, replacements, payments to states, visitor services, and
uprating payments. The total costs are offset by the projected revenue
from water sales, visitor center, ancillary services, and late fees.
The annual revenue requirement is the base charge for electric service
and is divided equally between capacity and energy. The annual
composite rate is the base charge divided by the annual energy sales.
Rate Schedule BCP-F8, Rate Order No. WAPA-150 was approved on an
interim basis by the Deputy Secretary of Energy on September 16, 2010,
for a 5-year period beginning on October 1, 2010, and ending September
30, 2015.\1\ The schedule received final approval from the Federal
Energy Regulatory Commission (FERC) on December 9, 2010.\2\ Western's
existing rate formula for electric service requires recalculation of
the base charge and rates annually based on updated financial and
hydrology data. The proposed base charge for fiscal year (FY) 2013
under Rate Schedule BCP-F8 is $86,800,488, and the proposed composite
rate is 20.45 mills/kWh.
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\1\ 75 FR 57912 (Sept. 23, 2010).
\2\ 133 FERC ] 62,229.
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The proposed BCP electric service base charge represents an
increase of approximately 3 percent compared to the FY 2012 base
charge. The 3 percent increase is based on the most current financial
data available at this time, which was taken from the latest rate-base
power repayment study, and also used to determine FY 2012 base charge
and rates. However, given an increase in current energy projections the
preliminary composite rate is forecasted to decrease 3 percent. The
following table compares the existing and proposed base charge and
composite rate. This proposal, effective October 1, 2012, is
preliminary and is subject to change upon publication of final formula
rates.
Comparison of Existing and Proposed Base Charge and Composite Rate
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Existing October 1, Proposed October 1,
2011 through 2012 through % Change
September 30, 2012 September 30, 2013
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Base Charge ($).......................................... 84,536,772 86,800,488 3
Composite Rate (mills/kWh)............................... 21.11 20.45 -3
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The increase in the proposed base charge is due to increases in the
annual operation and maintenance costs, visitor center costs, and the
uprating program principal payments. Since there is no projected year-
end carryover from FY 2012, the result is an overall increase in the
base charge for FY 2013. The decrease in the composite rate, despite
the base charge increase, is due to higher energy projections resulting
from improved hydrology, and the corresponding increases to Lake Mead
elevations.
Legal Authority
Since the proposed rates constitute a major rate adjustment as
defined by 10 CFR part 903, 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
consistent with 10 CFR parts 903 and 904.
Western is establishing an electric service base charge and rates
for BCP under the DOE 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 project 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 DOE procedures for public
participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985 (50 FR 87835).
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Western initiates or uses to develop the proposed 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); Council on Environmental Quality
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR
part 1021), Western has determined this action is categorically
excluded from preparing an environmental assessment or an environmental
impact statement.
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.
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Dated: January 9, 2012.
Timothy J. Meeks,
Administrator.
[FR Doc. 2012-799 Filed 1-17-12; 8:45 am]
BILLING CODE 6450-01-P