[Federal Register Volume 64, Number 124 (Tuesday, June 29, 1999)] [Notices] [Pages 34797-34798] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-16518] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Southwestern Power Administration Sam Rayburn Dam Project Power Rate AGENCY: Southwestern Power Administration, DOE. ACTION: Notice of proposed extension. ----------------------------------------------------------------------- SUMMARY: The Current Sam Rayburn Dam Project rate was approved by the Federal Energy Regulatory Commission (FERC) on December 7, 1994, Docket No. EF94-4021-000. These rates were effective October 1, 1994, through September 30, 1998. On August 14, 1998, the Deputy Secretary of Energy approved a one-year extension of the Sam Rayburn Dam rate schedule for the period October 1, 1998 through September 30, 1999. The Administrator, Southwestern, has prepared Current and Revised 1999 Power Repayment Studies for the Sam Rayburn Dam Project which show the need for a minor rate adjustment of $4,692 (0.2 percent increase) in annual revenues. In accordance with Southwestern's rate adjustment threshold, dated June 23, 1987, the Administrator, Southwestern, may determine, on a case by case basis, that for a revenue decrease or increase in the magnitude of two percent, deferral of a formal rate filing is in the best interest of the Government. The Secretary of Energy has the authority to extend rates, previously confirmed and approved by FERC, on an interim basis, pursuant to 10 CFR 903.22(h) and 903.23(a)(3). In accordance with Department of Energy (DOE) rate extension authority and Southwestern's rate adjustment threshold, the Administrator is proposing that the rate adjustment be deferred and that the current rates be extended for a one-year period effective through September 30, 2000. DATES: Written comments are due on or before July 29, 1999. FOR FURTHER INFORMATION CONTACT: Forrest E. Reeves, Assistant Administrator, Office of Corporate Operations, Southwestern Power Administration, Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101, (918) 595-6696, [email protected]. SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by an Act of the U.S. Congress, Department of Energy Organization Act, Pub. L. 95-91, dated August 4, 1977, and Southwestern's power marketing activities were transferred from the Department of the Interior to the Department of Energy, effective October 1, 1977. Southwestern markets power from 24 multiple-purpose reservoir projects with power facilities constructed and operated by the U.S. Army Corps of Engineers. These projects are located in the States of Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area includes these states plus Kansas and Louisiana. Of the total, 22 projects comprise an Integrated System and are interconnected through Southwestern's transmission system and exchange agreements with other utilities. The other two projects (Sam Rayburn and Robert Douglas Willis) are not interconnected with Southwestern's Integrated System. Instead, their power is marketed under separate contracts through which two customers purchase the entire power output of each of the projects at the dams. Following DOE Order Number RA 6120.2, the Administrator, Southwestern, prepared a 1999 Current Power Repayment Study (PRS) using the existing Sam Rayburn Dam Project rate schedule. This PRS, like the previous year's, includes estimates for both Southwestern's and the Corps' portions of the unfunded Civil Service Retirement Service and post retirement life/health costs. The PRS shows the cumulative amortization through FY 1998 at $12,339,699 on a total investment of $25,734,878. The FY 1999 Revised PRS indicates the need for an increase in annual revenues of $4,692, or 0.2 percent. As a matter of practice, Southwestern would defer an indicated rate adjustment that falls within Southwestern's plus-or-minus two percent rate adjustment threshold. The threshold was developed to add efficiency to the process of maintaining adequate rates and is consistent with cost recovery criteria within DOE Order Number RA 6120.2 regarding rate adjustment plans. The Sam Rayburn Dam Project's FY 1998 (last year's) PRS concluded that the annual revenues needed to be decreased by 0.2 percent. At that time, it was determined prudent to defer the decrease in accordance with the established threshold and the current rate schedule was continued for one year. It once again seems prudent to defer this rate adjustment of 0.2 percent, or $4,692 per year in accordance with Southwestern's rate adjustment threshold and reevaluate the ability of the existing rate to provide sufficient revenues to satisfy costs projected in the FY 2000 (next year's) PRS. On December 7, 1994, the current rate schedule for the Sam Rayburn Dam Project was confirmed and approved by the FERC on a final basis for a period that ended September 30, 1998. In accordance with 10 CFR 903.22(h) and 903.23(a)(3), the Secretary may extend existing rates on an interim basis beyond the period specified by the FERC. As a result of the benefits obtained by a rate adjustment deferral (reduced Federal expense and rate stability) and the Secretary's authority to extend a previously approved rate, Southwestern's Administrator is proposing to extend the current Sam [[Page 34798]] Rayburn Dam Project rate schedule. The schedule is to be effective for the one-year period beginning October 1, 1999, and extending through September 30, 2000. Opportunity is presented for customers and interested parties to receive copies of the study data for the Sam Rayburn Dam Project. If you desire a copy of the Repayment Study data package for the Sam Rayburn Dam Project, please submit your request to: Mr. Forrest E. Reeves, Assistant Administrator, Office of Corporate Operations, P.O. Box 1619, Tulsa, OK 74101, call (918) 595-6696 or e-mail [email protected]. Following review of the written comments (absent any substantive reasons to do otherwise), the Administrator will submit the rate extension proposal for the Sam Rayburn Dam Project to the Secretary of Energy for confirmation and approval. Dated: June 16, 1999. Michael A. Deihl, Administrator. [FR Doc. 99-16518 Filed 6-28-99; 8:45 am] BILLING CODE 6450-01-P