[Federal Register Volume 60, Number 226 (Friday, November 24, 1995)]
[Rules and Regulations]
[Pages 57924-57926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28559]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 11
[Docket No. RM96-2-000; Order No. 584]
Correction of Annual Charges Formula
Issued November 14, 1995.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
amending its regulations governing the assessment of annual charges for
the administration of Part I of the Federal Power Act (FPA). The
amendment restores the status quo ante in the formulae for allocating
annual charges among licensees, by correcting an error in a previous
final rule.
EFFECTIVE DATE: December 26, 1995.
FOR FURTHER INFORMATION CONTACT: Barry Smoler, Officer of the General
Counsel, Federal Energy Regulatory Commission, 825 N. Capitol Street,
NE., Washington, DC 20426, (202) 208-1269.
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission also provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours in Room 2A, 888 First
Street, NE., Washington, DC 20426.
The Commission Issuance Posting System (CIPS), an electronic
bulletin board service, provides access to the texts of formal
documents issued by the Commission. CIPS is available at no charge to
the user and may be accessed using a personal computer with a modem by
dialing (800) 856-3920. To access CIPS, set your communications
software to 19200, 14400, 12000, 9600, 7200, 4800, 2400 or 1200bps,
full duplex, no parity, 8 data bits, and 1 stop bit. The full text of
this document will be available on CIPS in ASCII and WordPerfect 5.1
format. The complete text on diskette in Wordperfect format may also be
purchased from the Commission's copy contractor, La Dorn Systems
Corporation, located in Room 2A, 888 First St. NE., Washington, DC
20426.
I. Introduction and Background
The Federal Energy Regulatory Commission (Commission) is amending
its regulations governing the assessment of annual charges for the
administration of Part I of the Federal Power Act (FPA).\1\ The
amendment restores the status quo ante in the formulae for allocating
annual charges among licenses, by correcting an error in a previous
final rule.
\1\ 16 U.S.C. 792-823b.
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On March 15, 1995, the Commission issued Order No. 576, a final
rule \2\ that amended Part 11 of the Commission's regulations. \3\ One
provision of Order No. 576 amended Sec. 11.1 of the regulations \4\ by
substituting (in several subsections) kilowatts for horsepower in
stating a project's authorized installed capacity. The Commission
explained that the change ``was designed to reflect modern usage in the
rating of equipment used in hydropower projects.'' \5\
\2\ III FERC Stats. & Regs. (Regulations Preambles) para.
31,016. Order No. 576 was published in the Federal Register on March
22, 1995, 60 FR 15040.
\3\ 18 CFR Part 11.
\4\ 18 CFR 11.1.
\5\ III FERC Stats. & Regs. (Regulations Preambles) para. 31,016
at p. 31,303.
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Order No. 576 added a new Sec. 11.1(i) that defined ``authorized
installed capacity'' in terms of kilowatts (kW) and related electrical
concepts and terminology. The definition included a conversion factor
(multiply by 0.75 kW/hp) for converting the capacity of a turbine
stated in horsepower (hp).
The formulae for allocating annual charges among non-municipal
licensees were set forth in the section of the regulations that Order
No. 576 renumbered as Sec. 11.1(c)(3). Order No. 576 deleted all
references in that subsection to ``horsepower,'' replacing them with
references to ``authorized installed capacity.'' As explained above,
``authorized installed capacity'' was now defined in terms of
kilowatts, not horsepower. In making this change, however, the
Commission inadvertently neglected to include the horsepower to
kilowatt conversion adjustment in that part of the renumbered
Secs. 11.1(c)(3) (i) and (iii) that referred to generation. The effect
of that inadvertent omission was to seriously distort the balance of
capacity and generation in determining the allocation of certain annual
charges. \6\ No such distortion was
[[Page 57925]]
intended. Indeed, in another part of Order No. 576 the Commission
explicitly stated that although it had invited comment on the choice of
capacity or generation (or both) in the allocation formulae, it had
decided not to make any such changes. \7\
\6\ There is no problem in the formula in Sec. 11.1(c)(3)(ii),
because that formula is based entirely on capacity. For the same
reason, there is no problem in the assessment formula for municipal
licensees (see paragraph (d) of that subsection), which is also
based solely on capacity. The distortion occurs only when the
formula includes a ratio between factors for generation and
capacity.
\7\ III FERC Stats. & Regs. (Regulations Preambles) para. 31,016
at pp. 31,307-08.
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Inasmuch as the distortion in the ratio between generation and
capacity is the inadvertent and unintended result of leaving out the
horsepower to kilowatt conversion adjustment when substituting
kilowatts for horsepower as the measure of capacity in
Secs. 11.1(c)(3)(i) and (iii), we will correct that omission in this
final rule by adding that conversion adjustment to those subsections.
That will restore the status quo ante, as we intended all along. The
conversion factor will be incorporated into the formulae in
Secs. 11.1(c)(3)(i) and (iii) by substituting ``112.5'' for ``150,'' as
the generation multiplier, in each instance, and by substituting ``75''
for ``100'' in subsection (iii).
Finally, we will correct an inadvertent omission of a cross-
reference in the definition of ``authorized installed capacity'' in
Sec. 11.1(i). At present, that section cross-references only to
paragraph (c) of Sec. 11.1. We will add a cross-reference to paragraph
(d) as well, as was our original intent.
II. Regulatory Flexibility Certification
The Regulatory Flexibility Act of 1980 (RFA) \8\ generally requires
a description and analysis of proposed regulations that will have a
significant economic impact on a substantial number of small entities.
\9\ Pursuant to section 605(b) of the RFA, the Commission hereby
certifies that the final rule adopted herein will not have a
significant economic impact on a substantial number of small entities.
\8\ 5 U.S.C. 601-612.
\9\ Section 601(c) of the RPA defines a ``small entity'' as a
small business, a small not-for-profit enterprise, or a small
governmental jurisdiction. A ``small business'' is defined by
reference to section 3 of the Small Business Act as an enterprise
which is ``independently owned and operated and which is not
dominant in its field of operation.'' 15 U.S.C. 632(a).
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III. Environmental Statement
Issuance of this final rule does not constitute a major federal
action having a significant adverse impact on the quality of the human
environment under the Commission's regulations implementing the
National Environmental Policy Act.\10\ The final rule adopted herein is
procedural in nature and therefore falls within the categorical
exemptions provided in the Commission's regulations. Consequently,
neither an environmental impact statement nor an environmental
assessment is required.\11\
\10\ See Order No. 486, 52 FR 47897 (Dec. 17, 1967), FERC Stats.
& Regs. (Regulations Preambles 1986-1990) para. 30,783 (Dec. 10,
1987) (codified at 18 CFR Part 380).
\11\ See 18 CFR 380.4(a)(1).
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IV. Information Collection Statement
The Office of Management and Budget's (OMB) regulations at 5 CFR
Part 1320 require that OMB approve certain information and
recordkeeping requirements imposed by an agency. The final rule adopted
herein does not modify any collections of information.
Interested persons may obtain information on these reporting
requirements by contacting the Federal Energy Regulatory Commission,
888 First Street, NE., Washington, DC 20426 [Attention: Michael Miller,
Information Services Division (202) 208-1415]. Comments on the
requirements of this rule can be sent to the Office of Information and
Regulatory Affairs of OMB [Attention: Desk Officer for Federal Energy
Regulatory Commission].
V. Effective Date
The Administrative Procedure Act (APA) \12\ requires that a notice
of proposed rulemaking be published in the Federal Register and that an
opportunity for comment be provided when an agency promulgates
regulations. The APA sets forth exemptions to the notice and comment
requirements if the rule is, inter alia, a rule of agency organization,
procedure, or practice, or if the Commission for good cause finds that
notice and comment procedures thereon are impracticable, unnecessary,
or contrary to the public interest.
\12\ 5 U.S.C. 552(a).
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For the reasons discussed above, this final rule corrects an error
of omission in the final rule adopted in Order No. 576. Therefore, for
good cause the Commission finds that notice and comment procedures are
unnecessary.
This final rule is effective December 26, 1995, and is retroactive
to the assessment of the annual charges for fiscal year 1995. This will
ensure that no licensee will pay for fiscal year 1995 an assessment of
annual charges greater than it would have paid had the formulae been
correctly stated in Order No. 576.
List of Subjects in 18 CFR Part 11
Electric power, Reporting and recordkeeping requirements.
By the Commission.
Linwood A. Watson, Jr.,
Acting Secretary.
In consideration of the foregoing, the Commission amends Part 11 of
Chapter I, Title 18, Code of Federal Regulations, as set forth below.
PART 11--ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT
1. The authority citation for Part 11 continues to read as follows:
Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352.
2. In section 11.1, paragraphs (c)(3) (i) and (iii) and paragraph
(i) are revised to read as follows:
Sec. 11.1 Costs of administration.
* * * * *
(c) * * *
(3) The annual charge factor for each such project shall be found
as follows:
(i) For a conventional project the factor is its authorized
installed capacity plus 112.5 times its annual energy output in
millions of kilowatt-hours.
* * * * *
(iii) For a mixed conventional-pumped storage project the factor is
its authorized installed capacity plus 112.5 times its gross annual
energy output in millions of kilowatt-hours less 75 times the annual
energy used for pumped storage pumping in million of kilowatt-hours.
* * * * *
(i) Definition. As used in paragraphs (c) and (d) of this section,
authorized installed capacity means the lesser of the ratings of the
generator or turbine units. The rating of a generator is the product of
the continuous-load capacity rating of the generator in kilovolt-
amperes (kVA) and the system power factor in kW/kVA. If the licensee or
exemptee does not know its power factor, a factor of 1.0 kW/kVA will be
used. The rating of a turbine is the product of the turbine's capacity
in horsepower (hp) at best gate (maximum efficiency point) opening
under the manufacturer's rated head times a conversion factor of 0.75
kW/hp. If the generator or turbine installed has a rating different
from that authorized in the license or exemption, or the installed
generator is rewound or otherwise modified to change its rating, or the
turbine is modified to change its rating, the licensee or exemptee must
apply to the Commission to amend its
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authorized installed capacity to reflect the change.
* * * * *
[FR Doc. 95-28559 Filed 11-22-95; 8:45 am]
BILLING CODE 6717-01-P