[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62627-62629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-24601]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam Rate
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
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SUMMARY: The U.S. Department of Energy Deputy Secretary has approved
and placed into effect on an interim basis Rate Order No. SWPA-67,
which increases the power rate for the Sam Rayburn Dam (Rayburn)
project pursuant to the Rayburn rate schedule (SRD-13) to supersede the
existing rate schedule.
DATES: The effective period for the rate schedule specified in Rate
Order No. SWPA-67 is October 1, 2013, through September 30, 2017.
FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Vice President
for Corporate Operations/Chief Operating Officer, Southwestern Power
Administration, U.S. Department of Energy, One West Third Street,
Tulsa, Oklahoma 74103, (918) 595-6690 (office), (918) 595-6656 (fax),
[email protected].
SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-67, which has been
approved and placed into effect on an interim basis, increases the
power rate for the Rayburn project pursuant to the following rate
schedule:
Rate Schedule SRD-13, Wholesale Rates for Hydro Power and Energy
Sold to Sam Rayburn Dam Electric Cooperative, Inc. (Contract No. DE-
PM75-92SW00215)
The rate schedule supersedes the existing rate schedule shown below:
Rate Schedule SRD-08, Wholesale Rates for Hydro Power and Energy
Sold to Sam Rayburn Dam Electric Cooperative, Inc. (Contract No. DE-
PM75-92SW00215) (superseded by SRD-13)
Southwestern Power Administration's (Southwestern) Administrator has
determined, based on the 2013 Rayburn Current Power Repayment Study,
that existing rates will not satisfy cost recovery criteria specified
in Department of Energy Order No. RA 6120.2 and Section 5 of the Flood
Control Act of 1944. The finalized 2013 Rayburn Revised Power Repayment
Studies (PRSs) indicate that an increase in annual revenue of $280,248,
or 7.1 percent, beginning October 1, 2013, will satisfy cost recovery
criteria for the Rayburn project. The proposed Rayburn rate schedule
would increase annual revenues from $3,949,872 to $4,230,120, to
recover increased U.S. Army Corps of Engineers' (Corps) investments and
replacements in the hydroelectric generating facility and increased
operations and maintenance costs.
The Administrator has followed Title 10, part 903 subpart A, of the
Code of Federal Regulations, ``Procedures for Public Participation in
Power and Transmission Rate Adjustments and Extensions'' in connection
with the proposed rate schedule. On August 6, 2013, Southwestern
published notice in the Federal Register, (78 FR 47695), of the
proposed rate increase for the Rayburn project. Southwestern provided a
30-day comment period as an opportunity for customers and other
interested members of the public to review and comment on the proposed
rate increase. Southwestern did not hold the combined Public
Information and Comment Forum (Forum) because Southwestern did not
receive any requests to hold the Forum. One comment was received from
Gillis, Borchardt and Barthel, LLP, on behalf of the Sam Rayburn Dam
Electric Cooperative, Inc., which stated no objection to the proposed
rate adjustment.
Information regarding this rate proposal, including studies and
other supporting material, is available for public review and comment
in the offices of Southwestern Power Administration, Williams Center
Tower I, One West Third Street, Tulsa, Oklahoma 74103. Following review
of Southwestern's proposal within the Department of Energy, I hereby
approve Rate Order No. SWPA-67 which increases the existing Sam Rayburn
Dam rate to $4,230,120 per year for the period October 1, 2013 through
September 30, 2017. Rate Order No. SWPA-67 will be submitted to FERC
for confirmation and approval on a final basis.
The Administrative Procedure Act requires that publication of a
substantive rule be made not less than 30 days before its effective
date, except, in relevant part, if the agency has good cause to waive
the delay requirement (5 U.S.C. 553(d)). Southwestern finds good cause
to waive the 30-day delay in effective date, placing the rates in
effect on an interim basis starting October 1, 2013, because the
current rate is insufficient to recover costs as required by statute;
no change to the standard October 1 date of implementation is being
made; and no comments were received and no revisions were made to the
proposed rates.
Dated: September 30, 2013.
Daniel Poneman,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
In the matter of: Southwestern Power Administration Sam Rayburn Dam
Project Rate Rate Order No. SWPA-67
ORDER CONFIRMING, APPROVING AND PLACING INCREASED POWER RATE SCHEDULE
IN EFFECT ON AN INTERIM BASIS
Pursuant to Sections 302(a) and 301(b) of the Department of
Energy Organization Act, Public Law 95-91, the functions of the
Secretary of the Interior and the Federal Power Commission under
Section 5 of the Flood Control Act of 1944, 16 U.S.C. 825s, relating
to the Southwestern Power Administration (Southwestern) were
transferred to and vested in the Secretary of Energy. By Delegation
Order No. 00-037.00, the Secretary of Energy delegated to the
Administrator of Southwestern the authority to develop power and
transmission rates, delegated to the Deputy Secretary of the
[[Page 62628]]
Department of Energy the authority to confirm, approve, and place in
effect such rates on an interim basis, and delegated to the Federal
Energy Regulatory Commission (FERC) the authority to confirm and
approve on a final basis or to disapprove rates developed by the
Administrator under the delegation. Pursuant to delegated authority,
the Deputy Secretary issued this interim rate order.
BACKGROUND
The Sam Rayburn Dam (Rayburn) is located on the Angelina River
in the State of Texas in the Neches River Basin. Since the beginning
of its operation in 1965, it has been marketed as an isolated
project, under contract with Sam Rayburn Dam Electric Cooperative,
Inc. (SRDEC) (Contract No. DE-PM75-92SW00215).
FERC confirmation and approval of the current Rayburn rate
schedule was provided in FERC Docket No. EF09-4021-000 issued on
March 30, 2009, (126 FERC ] 62224) effective for the period January
1, 2009, through September 30, 2012. The rate was extended by the
Deputy Secretary of Energy for the period October 1, 2012 through
September 30, 2013 (77 FR 67813, November 14, 2012), and FERC was
notified of the extension (Docket No. EF13-2-000).
DISCUSSION
Southwestern prepared a 2013 Current Power Repayment Study (PRS)
which indicated that the existing rate would not satisfy present
financial criteria regarding repayment of investment within a 50-
year period due to increased U.S. Army Corps of Engineers (Corps)
investments, replacements and operations and maintenance expenses in
the hydroelectric generating facilities. The Revised PRS indicated
the need for a 7.1 percent revenue increase. These preliminary
results, which presented the basis for the proposed revenue
increase, were provided to the customers for their review prior to
the formal process.
The final 2013 Revised PRS indicates that an increase in annual
revenues of $280,248 (7.1 percent) is necessary beginning October 1,
2013, to accomplish repayment in the required number of years.
Accordingly, Southwestern has prepared a proposed rate schedule
based on the additional revenue requirement to ensure repayment.
Southwestern conducted the rate adjustment proceeding in
accordance with Title 10, part 903, subpart A of the Code of Federal
Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions.'' More specifically,
opportunities for public review and comment during a 30-day period
on the proposed Rayburn power rate were announced by a Federal
Register notice published on August 6, 2013 (78 FR 47695). The
combined Public Information and Comment Forum tentatively scheduled
for August 27, 2013, in Tulsa, Oklahoma was not held because
Southwestern did not receive any requests to hold such a forum.
Southwestern provided the Federal Register notice, together with any
requested supporting data, to the customer and interested parties
for review and comment during the public comment period.
Southwestern will continue to perform its Power Repayment
Studies annually, and if the 2014 results should indicate the need
for additional revenues, another rate filing will be conducted and
updated revenue requirements implemented for FY 2014 and thereafter.
Following the conclusion of the comment period on September 5,
2013, Southwestern finalized the PRS and rate schedule for the
proposed annual rate of $4,230,120 which is the lowest possible rate
needed to satisfy repayment criteria. This rate represents an annual
increase of 7.1 percent. The Administrator made the decision to
submit the rate proposal for interim approval and implementation.
COMMENTS AND RESPONSES
Southwestern received one comment during the public comment
period. That comment expressed no objection to the final proposed
rate on behalf of the Sam Rayburn Dam Electric Cooperative, Inc.
AVAILABILITY OF INFORMATION
Information regarding this rate increase, including studies,
comments and other supporting material, is available for public
review and comment in the offices of Southwestern Power
Administration, One West Third Street, Tulsa, OK 74103.
ADMINISTRATION'S CERTIFICATION
The 2013 Rayburn Revised PRS indicates that the increased power
rate of $4,230,120 will repay all costs of the project including
amortization of the power investment consistent with the provisions
of Department of Energy Order No. RA 6120.2. In accordance with
Delegation Order No. 00-037.00 (December 6, 2001), and Section 5 of
the Flood Control Act of 1944, the Administrator has determined that
the proposed Rayburn rate is consistent with applicable law and the
lowest possible rate consistent with sound business principles.
ENVIRONMENT
The environmental impact of the rate increase proposal was
evaluated in consideration of DOE's guidelines for implementing the
procedural provisions of the National Environmental Policy Act and
was determined to fall within the class of actions that are
categorically excluded from the requirements of preparing either an
Environmental Impact Statement or an Environmental Assessment.
ORDER
In view of the foregoing and pursuant to the authority delegated
to me by the Secretary of Energy, I hereby confirm, approve and
place in effect on an interim basis, effective October 1, 2013,
through September 30, 2017, the annual Sam Rayburn Dam rate of
$4,230,120 for the sale of power and energy from the Sam Rayburn Dam
project to the Sam Rayburn Dam Electric Cooperative Inc., under
Contract No. DE-PM75-92SW00215. This rate shall remain in effect on
an interim basis through September 30, 2017, or until the FERC
confirms and approves the rate on a final basis, or until it is
superseded by a subsequent rate.
Dated: September 30, 2013
Daniel Poneman
Deputy Secretary
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE SRD-13 \1\ WHOLESALE RATES FOR HYDRO POWER AND ENERGY
SOLD TO SAM RAYBURN DAM ELECTRIC COOPERATIVE, INC. (CONTRACT NO. DE-
PM75-92SW00215)
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\1\ Supersedes Rate Schedule SRD-08
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Effective:
During the period October 1, 2013, through September 30, 2017,
in accordance with interim approval from Rate Order No. SWPA-67
issued by the Deputy Secretary of Energy on September 30, 2013 and
pursuant to final approval by the Federal Energy Regulatory
Commission.
Applicable:
To the power and energy purchased by Sam Rayburn Dam Electric
Cooperative, Inc., (SRDEC) from the Southwestern Power
Administration (Southwestern) under the terms and conditions of the
Power Sales Contract dated October 7, 1992, for the sale of all
Hydro Power and Energy generated at the Sam Rayburn Dam.
Character and Conditions of Service:
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage, at the point of delivery, and in such
quantities as are specified by contract.
1. Wholesale Rates, Terms, and Conditions for Hydro Power and Energy
1.1. These rates shall be applicable regardless of the quantity
of Hydro Power and Energy available or delivered to SRDEC; provided,
however, that if an Uncontrollable Force prevents utilization of
both of the project's power generating units for an entire billing
period, and if during such billing period water releases were being
made which otherwise would have been used to generate Hydro Power
and Energy, then Southwestern shall, upon request by SRDEC, suspend
billing for subsequent billing periods, until such time as at least
one of the project's generating units is again available.
1.2. The term ``Uncontrollable Force,'' as used herein, shall
mean any force which is not within the control of the party
affected, including, but not limited to, failure of water supply,
failure of facilities, flood, earthquake, storm, lightning, fire,
epidemic, riot, civil disturbance, labor disturbance, sabotage, war,
acts of war, terrorist acts, or restraint by court of general
jurisdiction, which by exercise of due diligence and foresight such
party could not reasonably have been expected to avoid.
1.3. Hydro Power Rates, Terms, and Conditions
1.3.1. Monthly Charge for the Period of October 1, 2013 through
September 30, 2017
$352,510 per month ($4,230,120 per year) for Sam Rayburn Dam
Hydro Power and
[[Page 62629]]
Energy purchased by SRDEC from October 1, 2013, through September
30, 2017.
[FR Doc. 2013-24601 Filed 10-21-13; 8:45 am]
BILLING CODE 6450-01-P