[Federal Register Volume 79, Number 171 (Thursday, September 4, 2014)]
[Notices]
[Pages 52646-52647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21107]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Robert D. Willis Power Rate
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of public review and comment.
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SUMMARY: The Administrator, Southwestern Power Administration
(Southwestern), has prepared Current and Revised 2014 Power Repayment
Studies for the Robert D. Willis project which show the need for an
increase in annual revenues to meet cost recovery criteria. Such
increased revenues are needed primarily to cover the costs associated
with increased investments and replacements in the hydroelectric
generating facilities and increased operations and maintenance costs.
The Administrator of Southwestern has developed a proposed Robert D.
Willis Rate Schedule, which is supported by power repayment studies, to
recover the required revenues. The Revised 2014 Power Repayment Study
indicates that the proposed Rate Schedule would increase annual
revenues approximately 10.2 percent from $1,072,332 to $1,181,496
effective January 1, 2015 through September 30, 2018.\1\
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\1\ FERC on April 29, 2013 confirmed and approved the existing
Robert D. Willis rate for the period October 1, 2012 through
September 30, 2016. See 143 FERC ] 62,067.
DATES: The consultation and comment period will begin on the date of
publication of this Federal Register notice and will end on October 20,
2014. If requested, a combined Public Information and Comment Forum
(Forum) will be held in Tulsa, Oklahoma at 9:00 a.m. on October 8,
2014. Persons desiring the Forum to be held must send a written request
for such Forum to the Acting Vice President, Chief Operating Officer
(see FOR FURTHER INFORMATION CONTACT) by September 11, 2014. If no
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request is received, the Forum will not be held.
ADDRESSES: If requested, the Forum will be held in Southwestern's
offices, Room 1460, Williams Center Tower I, One West Third Street,
Tulsa, Oklahoma 74103.
FOR FURTHER INFORMATION CONTACT: Tracey Stewart, Acting Vice President,
Chief Operating Officer, Office of Corporate Operations, Southwestern
Power Administration, U.S. Department of Energy, One West Third Street,
Tulsa, Oklahoma 74103, (918) 595-6677, [email protected].
SUPPLEMENTARY INFORMATION: Originally established by Secretarial Order
No. 1865 dated August 31, 1943, Southwestern is an agency within the
U.S. Department of Energy (DOE) created by the Department of Energy
Organization Act, Public Law 95-91, dated August 4, 1977.
Southwestern markets power from 24 multi-purpose reservoir projects
with hydroelectric power facilities constructed and operated by the
U.S. Army Corps of Engineers (Corps). These projects are located in the
states of Arkansas, Missouri, Oklahoma, and Texas. Southwestern's
marketing area includes these states plus Kansas and Louisiana. The
costs associated with the hydropower facilities of 22 of the 24
projects are repaid via revenues received under the Integrated System
rates, as are those of Southwestern's transmission facilities, which
consist of 1,380 miles of high-voltage transmission lines, 25
substations, and 46 microwave and VHF radio sites. Costs associated
with the Sam Rayburn and Robert D. Willis Dams, two Corps projects that
are isolated hydraulically, electrically, and financially from the
Integrated System, are repaid by separate rate schedules.
Following DOE guidelines, Southwestern prepared a 2014 Current
[[Page 52647]]
Power Repayment Study using the existing Robert D. Willis Rate
Schedule.\2\ Guidelines for preparation of power repayment studies are
included in DOE Order No. RA 6120.2 entitled Power Marketing
Administration Financial Reporting. This study indicates that
Southwestern's legal requirement to repay the investment in the power
generating facility for power and energy marketed by Southwestern will
not be met without an increase in revenues. The need for increased
revenues is primarily due to increased investments and replacements in
Corps hydroelectric generating facilities and a slight increase in the
costs associated with operations and maintenance. The 2014 Revised
Power Repayment Study shows that additional annual revenues of $109,164
(a 10.2 percent increase) are needed to satisfy repayment criteria.
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\2\ FERC, on April 29, 2013, confirmed and approved the existing
Robert D. Willis rate schedule for the period October 1, 2012
through September 30, 2016. See 143 FERC ] 62,067.
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Because of concerns expressed by Southwestern's customers during
the development of the 2014 Power Repayment Studies regarding the
magnitude of the proposed increase, Southwestern is proposing to
increase revenue in two steps over a two-year period. Because
Southwestern's current rates are sufficient to recover all average
operation and maintenance expenses during the next two years, the
ability to meet both annual and long-term repayment criteria is
satisfied by increasing revenues in two steps over the period.
The first step of the rate increase, beginning January 1, 2015,
would incorporate one half of the required revenue or 5.1 percent
($54,582). The second step of the rate increase, beginning October 1,
2015, and ending on September 30, 2018, would incorporate the remaining
one half of the revenue requirement ($54,582 or 5.1 percent).
Southwestern will continue to perform its Power Repayment Studies
annually, and if the 2015 results should indicate the need for
additional revenues, another rate filing will be conducted and updated
revenue requirements implemented for FY 2016 and thereafter.
Procedures for public participation in power and transmission rate
adjustments of the Power Marketing Administrations are found at title
10, part 903, subpart A of the Code of Federal Regulations (10 CFR part
903). Southwestern's customers and other interested parties may request
copies of the 2014 Robert D. Willis Power Repayment Studies and the
proposed Rate Schedule. Submit requests to the Director, Division of
Resources and Rates, Office of Corporate Operations, Southwestern Power
Administration, One West Third, Tulsa, OK 74103, (918) 595-6684 or via
email to [email protected].
If requested a Public Information and Comment Forum (Forum) will be
held on October 8, 2014, to explain to customers and interested parties
the proposed Rate Schedule and supporting 2014 Power Repayment Studies,
and to allow for comment. A chairman, who will be responsible for
orderly procedure, will conduct the Forum if requested. Questions
concerning the rates, studies, and information presented at the Forum
will be answered, to the extent possible, at the Forum. Questions not
answered at the Forum will be answered in writing. Questions involving
voluminous data contained in Southwestern's records may best be
answered by consultation and review of pertinent records at
Southwestern's offices.
Persons requesting that a Forum be held should indicate in writing
to the Acting Vice President and Chief Operating Officer (see FOR
FURTHER INFORMATION CONTACT) by letter, email, or facsimile
transmission (918-595-6687) by September 11, 2014, their request for
such a Forum. If no request is received, no such Forum will be held.
Persons interested in speaking at the Forum, if held, should submit a
request to the Acting Vice President and Chief Operating Officer,
Southwestern, at least seven (7) calendar days prior to the Forum so
that a list of forum participants can be developed. The chairman may
allow others to speak if time permits.
A transcript of the Forum, if held, will be made. Copies of the
transcript and all documents introduced will be available for review at
Southwestern's offices (see ADDRESSES) during normal business hours.
Copies of the transcript and all documents introduced may also be
obtained, for a fee, from the transcribing service. A copy of all
written comments or an electronic copy in MS Word on the proposed
Robert D. Willis Rate Schedule is due on or before October 20, 2014.
Comments should be submitted to the Acting Vice President and Chief
Operating Officer, Southwestern, (see FOR FURTHER INFORMATION CONTACT).
Procedures for the confirmation and approval of rates for the
Federal Power Marketing Administrations are found at title 18, part
300, subpart L of the Code of Federal Regulations (18 CFR part 300).
The Administrator will review and consider oral and written comments
and the information gathered in the course of the proceeding when
submitting the finalized Robert D. Willis Power Repayment Studies and
Rate Schedule Proposal in support of the proposed rate to the Deputy
Secretary of Energy for confirmation and approval on an interim basis,
and subsequently to the Federal Energy Regulatory Commission for
confirmation and approval on a final basis. Once submitted for final
confirmation and approval, the Commission will allow the public an
opportunity to provide written comments on the proposed rate increase
before making a final decision.
Dated: August 27, 2014.
Christopher M. Turner,
Administrator.
[FR Doc. 2014-21107 Filed 9-3-14; 8:45 am]
BILLING CODE 6450-01-P