[Federal Register Volume 64, Number 56 (Wednesday, March 24, 1999)]
[Notices]
[Pages 14227-14228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7213]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project--Firm Power Services Base Charge
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Base Charge Adjustments.
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SUMMARY: The Western Area Power Administration's (Western) Desert
Southwest Region (DSW) is initiating a rate adjustment process for the
firm power services base charge for the Boulder Canyon Project (BCP)
for FY 2000. The annual base charge adjustments are a requirement of
the rate setting methodology approved on a final basis by the Federal
Energy Regulatory Commission (FERC) on April 19, 1996. The existing
rate schedule was placed into effect on November 1, 1995. The power
repayment study indicates the proposed base charge herein for BCP firm
power services is appropriate to provide sufficient revenue to pay all
[[Page 14228]]
annual costs (including interest expense), plus repayment of required
investment within the allowable time period.
The proposed base charge is explained in greater detail during the
informal and formal processes and made available to all power customers
and interested parties.
The proposed base charge for firm power services is expected to
become effective October 1, 1999. This Federal Register notice
initiates the formal process for the proposed base charge.
DATES: The consultation and comment period will begin from the date of
publication of this Federal Register notice and will end June 22, 1999.
A public information forum at which Western will present a detailed
explanation of the proposed base charge is scheduled for April 21,
1999, beginning at 10:00 a.m. MST, at the Desert Southwest Regional
Office. A public comment forum at which Western will receive oral and
written comments is scheduled for June 2, 1999, beginning at 10:30 a.m.
MST, at the same location.
ADDRESSES: Written comments should be sent to: Mr. J. Tyler Carlson,
Regional Manager, Desert Southwest Customer Service Region, Western
Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457.
Western should receive written comments by the end of the consultation
and comment period to be assured consideration. The public forums will
be held at the Desert Southwest Regional Office, 615 South 43rd Avenue,
Phoenix, Arizona.
FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead,
Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 352-2768.
SUPPLEMENTARY INFORMATION:
Proposed Base Charge for Firm Power Services
In accordance with established rate design principles for the BCP
firm power services, Western has established a proposed base charge,
consisting of an energy dollar and capacity dollar, and has established
a forecast energy rate and forecast capacity rate. The proposed base
charge for BCP firm power services is based on an annual revenue
requirement of $47,929,196. The proposed base charge consists of an
energy dollar amount of $24,752,366 and a capacity dollar amount of
$23,176,831. The proposed forecast energy rate is 4.6249 mills/
kilowatthour (mills/kWh), and the proposed forecast capacity rate is
$0.9900 per kilowattmonth ($/kWmo).
The existing BCP firm power services base charge is based on an
annual revenue requirement of $48,842,126, consisting of an energy
dollar amount of $25,208,831 and a capacity dollar amount of
$23,633,296. The existing BCP forecast energy rate is 4.8646 mills/kWh
and the forecast capacity rate is $1.0095/kWmo.
Authorities
Since the proposed change to the base charge constitutes a major
rate adjustment as defined in 10 CFR 903.2, both a public information
forum and a public comment forum will be held. After review of public
comments, Western will recommend the proposed base charge or revised
proposed base charge for approval on an interim basis by the Department
of Energy (DOE) Deputy Secretary.
The proposed firm power services base charge for BCP is being
established pursuant to the Department of Energy Organization Act (42
U.S.C. 7101, et seq.) and the Reclamation Act of 1902 (43 U.S.C. 371,
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)) and section 8 of the Act of August 31, 1964 (16 U.S.C.
837g), the Colorado River Basin Project Act of 1968 (43 U.S.C. 1501, et
seq.), the Colorado River Storage Project Act (43 U.S.C. 620, et seq.),
the Boulder Canyon Project Act (43 U.S.C. 617, et seq.), the Boulder
Canyon Project Adjustment Act (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 BCP, Arizona/Nevada (43 CFR Part 431) published in
the Federal Register at 51 FR 23960 on July 1, 1986, and the General
Regulations for the Charges for the Sale of Power From the BCP, Final
Rule (10 CFR Part 904) published in the Federal Register at 50 FR 37837
on September 18, 1985, and the DOE financial reporting policies,
procedures, and methodology (DOE Order No. RA 6120.2 dated September
20, 1979).
By Amendment No. 3 to Delegation Order No. 0204-108, published
November 10, 1993 (58 FR 59716), the Secretary of DOE 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 in effect on an interim basis
to the Deputy Secretary; 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) became effective on September
18, 1985 (50 FR 37835).
Regulatory Procedure Requirements
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.)
requires Federal agencies to perform a regulatory flexibility analysis
if a proposed rule is likely to have a significant economic impact on a
substantial number of small entities and there is a legal requirement
to issue a general notice of proposed rulemaking. Western has
determined that this action relates to rates or services offered by
Western, and therefore is not a rule within the purview of the Act.
Environmental Compliance
In compliance with the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.); the Council On Environmental Quality
Regulations (40 CFR Parts 1500-1508); and DOE NEPA Regulations (10 CFR
Part 1021), Western conducts environmental evaluations of the proposed
base charge and develops the appropriate level of documentation.
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.
Availability of Information
All brochures, studies, comments, letters, memorandums, and other
documents made or kept by Western for the purpose of developing the
proposed base charge will be made available for inspection and copying
at Western's Desert Southwest Regional Office at 615 South 43rd Avenue
in Phoenix, Arizona.
Dated: March 5, 1999.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 99-7213 Filed 3-23-99; 8:45 am]
BILLING CODE 6450-01-U