[Federal Register Volume 59, Number 194 (Friday, October 7, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-24925] [[Page Unknown]] [Federal Register: October 7, 1994] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Boulder Canyon Project--Proposed Second Annual Rate Adjustment AGENCY: Western Area Power Administration, Department of Energy. ACTION: Notice to terminate the public process for the proposed Rate WAPA-58-2 and announce that the existing WAPA-58-1 rates will remain in place until Western Area Power Administration initiates a new annual rate filing in 1995. ----------------------------------------------------------------------- SUMMARY: Notice is given by Western Area Power Administration (Western) for termination of the public process for the proposed Rate WAPA-58-2 for the Boulder Canyon Project (BCP) second annual rate adjustment. The termination of the public process for the proposed Rate WAPA-58-2 leaves the existing WAPA-58-1 BCP power rate in effect until Western initiates a new annual rate filing in 1995. The public process for the proposed Rate WAPA-58-2 began with a Federal Register notice published on May 31, 1994 (59 FR 28075), announcing the second annual BCP proposed power rate adjustment. Western held a public information forum on June 15, 1994, and a public comment forum on July 8, 1994. At the request of the BCP contractors, Western re-evaluated the annual costs in the power repayment spreadsheet study for the ratesetting methodology period. As a result of this re-evaluation, Western made the decision to terminate the public process for the proposed Rate WAPA-58-2. The basis for Western's decision to terminate the public process for the proposed Rate WAPA-58-2 is as follows: (1) The BCP currently has a rate in effect that will satisfy fiscal year (FY) 1994 and FY 1995 annual costs; and (2) Western believes it is in the final stage of negotiations with the BCP contractors and the Bureau of Reclamation (Reclamation) concerning an Implementation Agreement, which would provide for a revised methodology for establishing BCP power rates on an annual basis. Under the existing ratesetting methodology, which is the methodology used in the proposed Rate WAPA-58-2, the power rate is determined by the higher of (1) the 5-year-average rate for the cost evaluation period or (2) the rate in the first year of the cost evaluation period. The proposed Rate WAPA-58-2 was set by the 5-year- average rate, which was the higher of these two determinants. When Western implements a BCP rate based on the 5-year-average rate, a revenue surplus at year-end is created. The revenue surplus would disappear under the revised methodology contained in the Implementation Agreement. Western's decision to terminate the public process for the proposed Rate WAPA-58-2 is consistent with the Stipulation Agreement which provides that (1) Western will undertake the appropriate filing(s) before the Federal Energy Regulatory Commission (FERC) to maintain the BCP rates at the FY 1994 (WAPA-58-1) level until September 30, 1995; (2) Reclamation and the BCP contractors agree that neither Reclamation nor any of the BCP contractors will protest the referenced filing by Western, and this Stipulation may be affixed to said filing as evidence of that agreement; (3) Western will withdraw the proposed WAPA-58-2 in accordance with 10 CFR 903.21(a)(1) and will proceed with the filing(s) as referenced above. Such withdrawal shall be without prejudice to any party with respect to the issues involved in the rate order and the parties will continue their efforts to resolve those issues; and (4) the parties will use their best efforts to finalize the negotiations of the Implementation Agreement by October 1, 1994. Western has consulted informally with FERC staff and is terminating the public process for Rate WAPA-58-2 with this Federal Register notice. Western will initiate another public process for the next annual rate in 1995. FERC approved the Rate Order No. WAPA-58 formula rate on November 3, 1993. The ratesetting methodology approval period is through September 30, 1997. See FERC's decision at 65 FERC Par 61,186. The Administrator of Western confirmed and approved Rate WAPA-58-1. The existing WAPA-58-1 BCP composite power rate identified in Rate Schedule BCP-F4/2 is 12.62 mills per kilowatthour (mills/kWh) comprised of an energy charge of 6.31 mills/kWh and a capacity charge of $1.07 per kilowatt per month. DATES: Rate WAPA-58-1 identified in Rate Schedule BCP-F4/2 became effective on February 1, 1994, and will remain in effect until superseded by the 1995 annual rate. FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Area Manager, Phoenix Area Office, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 352-2521. SUPPLEMENTARY INFORMATION: By Amendment No. 3 to Delegation Order No. 0204-108, published November 10, 1993 (58 FR 59716), the Secretary of Energy delegated (1) the authority to develop long-term power and transmission rates on a nonexclusive basis to the Administrator of Western; (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 power rates to FERC. These power rates are established pursuant to the Department of Energy Organization Act (42 U.S.C. 7101 et seq.); the Reclamation Act of 1902 (43 U.S.C. 372 et seq.), as amended and supplemented by subsequent enactments, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)); the Colorado River Basin Project Act of 1968 (43 U.S.C. 1501 et seq.); the Colorado River Storage Project Act of 1956 (43 U.S.C. 620 et seq.); the Boulder Canyon Project Act of 1928 (43 U.S.C. 617 et seq.); the Boulder Canyon Project Adjustment Act of 1940 (43 U.S.C. 618 et seq.); the Hoover Power Plant Act of 1984 (43 U.S.C. 619 et seq.); the General Regulations for Power Generation, Operation, Maintenance, and Replacement at the Boulder Canyon Project, Arizona/Nevada (43 CFR part 431) published in the Federal Register at 51 FR 23960 on July 1, 1986; the General Regulations for the Charges for the Sale of Power from the Boulder Canyon Project, Final Rule (10 CFR part 904) published in the Federal Register at 51 FR 43124 on November 28, 1986; the procedures for public participation in rate adjustments for power and transmission service marketed by Western (10 CFR part 903) published in the Federal Register at 50 FR 37835 on September 18, 1985; and the Department of Energy financial reporting policies, procedures, and methodology (DOE RA 6120.2 dated September 20, 1979). Issued in Golden, Colorado, September 22, 1994. William H. Clagett, Administrator. [FR Doc. 94-24925 Filed 10-6-94; 8:45 am] BILLING CODE 6450-01-P