[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Notices]
[Pages 37529-37530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17656]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Proposed Robert D. Willis Power Rate Change
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of public review and comment period.
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SUMMARY: The Administrator, Southwestern, has prepared current and
revised 1999 Power Repayment Studies for the Robert D. Willis (Willis)
project which show the need for an increase in annual revenues required
to meet cost recovery criteria. The increase in the revenues required
is the result of an increase in the amount of large maintenance items
within the Operations and Maintenance costs estimated by Corps of
Engineers. The Administrator has also developed a proposed rate
schedule for the isolated Willis project to recover the required
revenues. The proposed rate for the Willis project would increase
annual revenues approximately 11.5 percent from $302,928 to $337,932
beginning October 1, 1999.
DATES: Southwestern is conducting this 30 day public notice and comment
period as prescribed by 10 CFR 903.14(d). The consultation and comment
period will begin on the date of publication of this Federal Register
and will end August 11, 1999. The Public Information Forum will be held
(if requested) on July 20, 1999, 1:00 p.m., Central Daylight Time in
Southwestern's offices, Williams Center Tower I, One West Third Street,
Tulsa, Oklahoma 74103.
ADDRESSES: Ten copies of any written comments should be submitted to:
Mr. Forrest E. Reeves, Assistant Administrator, Office of Corporate
Operations, Southwestern Power Administration, U.S. Department of
Energy, P.O. Box 1619, Tulsa, Oklahoma 74101.
FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant
Administrator, (918) 595-6696, [email protected].
SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by
an Act of the U.S. Congress, through the Department of Energy
Organization Act, P.L. 95-91, dated August 4, 1977, and Southwestern
Power Administration'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 Sam Rayburn Dam project, located in eastern Texas, is
not interconnected with Southwestern's Integrated System hydraulically,
electrically, or financially. Instead, the power produced by the Sam
Rayburn Dam project is marketed by Southwestern as an isolated project
under a contract through which the customer purchases the entire power
output of the project at the dam. The
[[Page 37530]]
Willis project, located on the Neches River downstream from the Sam
Rayburn Dam, consists of two 4,000 kilowatt hydroelectric generating
units. It, like the Sam Rayburn Dam project, is marketed as an isolated
project under a contract through which the customer, Sam Rayburn
Municipal Power Agency (SRMPA), receives the entire output of the
project. The SRMPA contract is for a period of 50 years as a result of
SRMPA's funding the construction of the hydroelectric facilities at the
project. A separate power repayment study is prepared for each project
which has a special rate based on its isolated project determination.
Following Department of Energy Order Number RA 6120.2, the
Administrator, Southwestern, prepared a current power repayment study
for the Robert D. Willis project using the existing annual rate of
$302,928. This Power Repayment Study, 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 study indicated that maintaining the current rate
will create a revenue deficit for the project. This is primarily a
result of the Corps of Engineers' increase of Large Maintenance items
included in the estimated Operations and Maintenance cost for the
Willis Project. The Revised Power Repayment Study for the isolated
Willis project shows that an increase of $35,004 (a 11.5 percent
increase) annually will satisfy repayment criteria. This increase would
change annual revenues produced by the Willis Project from $302,928 to
$337,932 and satisfy the present financial criteria for repayment of
the project.
Opportunity is presented for customers and interested parties to
receive copies of the studies and proposed rate schedule for the Willis
project. If you desire a copy of the Repayment Study Data Package for
the Willis project, submit your request to the information contact
listed above.
A Public Information Forum is scheduled to be held July 20, 1999.
The Public Information Forum is to explain to customers and interested
parties the proposed rates and supporting studies. The Forum will be
conducted by a chairman who will be responsible for orderly procedure.
Questions concerning the rates, studies and information presented at
the Forum may be submitted from interested persons and will be
answered, to the extent possible, at the Forum. Questions not answered
at the Forum will be answered in writing, except the 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 interested in attending the Public
Information Forum should indicate in writing by 4:00 p.m., Central
Daylight Time, Thursday, July 15, 1999, their intent to appear at such
Forum. Accordingly, if no one so indicates their intent to attend, no
such Forum will be held. A transcript of the Forum will be made. Copies
of the transcripts may be obtained, for a fee, directly from the
transcribing service. Copies of all documents introduced will be
available from Southwestern upon request, also for a fee. Written
comments on the proposed rates for the project are due on or before
August 11, 1999. Written comments should be submitted to the Assistant
Administrator as indicated above.
Following review of the oral and written comments, the
Administrator will submit the rate proposals and the Power Repayment
Studies for the Willis project, in support of the proposed rates, to
the Secretary of Energy for confirmation and approval on an interim
basis and subsequently to the Federal Energy Regulatory Commission
(FERC) for confirmation and approval on a final basis. The FERC will
allow the public an opportunity to provide written comments on the
proposed rate increases before making a final decision.
Issued in Tulsa, Oklahoma, this 28th day of June, 1999.
Michael A. Deihl,
Administrator.
[FR Doc. 99-17656 Filed 7-9-99; 8:45 am]
BILLING CODE 6450-01-P