[Federal Register Volume 78, Number 23 (Monday, February 4, 2013)]
[Notices]
[Pages 7775-7776]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02333]
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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, 2013, under Rate Schedule BCP-F8. The current base charge
is not sufficient to cover 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 2013. The proposed base charge
and rates are scheduled to become effective October 1, 2013, and will
remain in effect through September 30, 2014. 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 May 6, 2013. Western will present a detailed explanation of the
proposed base charge and rates at a public information forum March 27,
2013, 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 10, 2013, 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 the principle documents used
in developing the rates 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.
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 30 days in advance of
the meeting to obtain the necessary form for admittance to Western.
FOR FURTHER INFORMATION CONTACT: 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
[[Page 7776]]
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) 2014 under Rate Schedule BCP-F8 is $86,440,816,
and the proposed composite rate is 22.39 mills/kilowatthour.
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\1\ 75 FR 57912 (September 23, 2010).
\2\ 133 FERC ] 62,229.
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The proposed BCP electric service base charge and composite rate
represent increases of approximately 5 percent compared to the FY 2013
base charge and composite rate. The 5 percent increase in the base
charge is based on the most current financial data available at this
time, which was taken from the latest rate-base power repayment study.
The 5-percent increase in the composite rate is based on current
hydrology conditions and the corresponding Lake Mead elevations. The
following table compares the existing and proposed base charge and
composite rate. This proposal, effective October 1, 2013, is
preliminary and is subject to change upon publication of final formula
rates.
Comparison of Existing and Proposed Base Charge and Composite Rate
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Existing Proposed
October 1, October 1,
2012 through 2013 through % Change
September 30, September 30,
2013 2014
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Base Charge ($)................................................. 82,379,637 86,440,816 5
Composite Rate (mills/kWh)...................................... 21.28 22.39 5
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The increase in the proposed base charge is due to increases in the
annual visitor center costs, uprating program principal payments,
capital investments principal payments and replacement costs.
Currently, there is no projected year-end carryover from FY 2012 and FY
2013 resulting in an overall increase in the base charge for FY 2014.
However, these results are based on preliminary data and subject to
change upon receipt of audited FY end financial information. The
projected increase in the composite rate is due to the projected
increase in the base charge and lower energy projections resulting from
the current hydrology conditions and 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.
Dated: December 20, 2012.
Anita J. Decker,
Acting Administrator.
[FR Doc. 2013-02333 Filed 2-1-13; 8:45 am]
BILLING CODE 6450-01-P