[Federal Register: January 6, 2004 (Volume 69, Number 3)]
[Notices]
[Page 644-649]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ja04-78]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Loveland Area Projects--Rate Order No. WAPA-105
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order.
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SUMMARY: Notice is given of the confirmation and approval by the Deputy
Secretary of the Department of Energy (DOE) of Rate Order No. WAPA-105
and Rate Schedule L-F5 placing provisional rates for the Loveland Area
Projects (LAP) firm electric service into effect on an interim basis
effective February 1, 2004. The provisional rates will remain in effect
on an interim basis until the Federal Energy Regulatory Commission
(Commission) confirms, approves, and places them into effect on a final
basis or until they are replaced by other rates. The provisional rates
will provide sufficient revenue to pay all annual costs, including
interest expenses, and repayment of required investment within the
allowable period.
DATES: Rate Schedule L-F5 will be placed into effect on an interim
basis on the first day of the first full billing period beginning on or
after February 1, 2004, and will be in effect until the Commission
confirms, approves, and places the provisional rates into effect on a
final basis for 5 years ending December 31, 2008, or until superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Ronald W. Steinbach, Power
Marketing Manager, Rocky Mountain Customer Service Region, Western Area
Power Administration, 5555 East Crossroads Boulevard, Loveland, CO
80538-8986, telephone (970) 461-7322, e-mail steinbach@wapa.gov.
SUPPLEMENTARY INFORMATION: The DOE Deputy Secretary approved Rate
[[Page 645]]
Schedule L-F4 for LAP firm electric service on an interim basis on
January 6, 1994 (Rate Order No. WAPA-61, 59 FR 3339, January 21, 1994).
The Commission confirmed and approved the rate schedule on a final
basis on July 14, 1994, under Commission Docket No. EF94-5181-000 (68
FERC 62,040). Rate Schedule L-F4 was approved for 5 years beginning
February 1, 1994, ending January 31, 1999. Rate Order No. WAPA-82 (63
FR 58033, October 29, 1998) extended the rates for 2 years, beginning
February 1, 1999, through January 31, 2001. Rate Order No. WAPA-89 (65
FR 44044, July 17, 2000) extended the rates again beginning February 1,
2001, through September 30, 2003. Rate Order No. WAPA-103 (68 FR 33119,
June 3, 2003) extended the rates a third time beginning October 1,
2003, through March 31, 2004.
Under Rate Schedule L-F4, the existing composite rate is 21.70
mills per kilowatthour (mills/kWh). The energy rate is 10.85 mills/kWh
and the capacity rate is $2.85 per kilowattmonth (kWmo). Under Rate
Schedule L-F5, the first step of the provisional rates for LAP firm
electric service will result in a composite rate of 23.44 mills/kWh.
The energy rate will be 11.72 mills/kWh and the capacity rate will be
$3.08 per kWmo. This will result in an increase of 8 percent effective
February 1, 2004. The second step of the provisional rates for LAP firm
electric service will result in a composite rate of 23.90 mills/kWh.
The energy rate will be 11.95 mills/kWh and the capacity rate will be
$3.14 per kWmo. This will result in an additional increase of 2 percent
effective October 1, 2004.
Provisional Rates for LAP Firm Electric Service
The provisional rates for LAP firm electric service are designed to
recover an annual revenue requirement that includes investment
repayment, interest, purchased power, operation and maintenance
expenses (O&M), and other annual expenses. The annual revenue
requirement for firm electric service is allocated equally between
capacity and energy.
The provisional rates for LAP firm electric service are developed
under the DOE Organization Act (42 U.S.C. 7101-7352), through which the
power marketing functions of the Secretary of the Interior and the
Bureau of Reclamation under the Reclamation Act of 1902 (ch. 1093, 32
Stat. 388), as amended and supplemented by subsequent laws,
particularly section 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other acts specifically applicable to the project
involved, were transferred to and vested in the Secretary of Energy
(Secretary).
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary delegated (1) The authority to develop power and transmission
rates on a nonexclusive basis to the Administrator of the Western Area
Power Administration (Western); (2) the authority to confirm, approve,
and place such rates into 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 the
Commission. Existing DOE procedures for public participation in power
rate adjustments are located at 10 CFR 903, effective on September 18,
1985 (50 FR 37835).
The Procedures for Public Participation in Power and Transmission
Rate Adjustments and Extensions, 10 CFR 903, have been followed by
Western in developing these provisional rates.
Rate Order No. WAPA-105, confirming, approving, and placing the
proposed LAP firm electric service rates into effect on an interim
basis, is issued. The new Rate Schedule L-F5 will be submitted promptly
to the Commission for confirmation and approval on a final basis.
Dated: December 24, 2003.
Kyle E. McSlarrow,
Deputy Secretary.
Order Confirming, Approving, and Placing the Loveland Area Projects
Firm Electric Service Rates Into Effect on an Interim Basis
These rates are developed under the DOE Organization Act (42
U.S.C. 7101-7352), through which the power marketing functions of
the Secretary of the Interior and the Bureau of Reclamation under
the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and
supplemented by subsequent laws, particularly section 9(c) of the
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and other acts
specifically applicable to the project involved, were transferred to
and vested in the Secretary.
By Delegation Order No. 00-037.00, effective December 6, 2001,
the Secretary delegated (1) The authority to develop 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; and (3) the
authority to confirm, approve, and place into effect on a final
basis, to remand, or to disapprove such rates to the Commission.
Existing DOE procedures for public participation in power rate
adjustments are found at 10 CFR 903. Procedures for approving Power
Marketing Administration rates by the Commission are found at 18 CFR
300.
Acronyms and Definitions
As used in this rate order, the following acronyms and
definitions apply:
Administrator: The Administrator of Western Area Power
Administration.
Capacity: The electric capability of a generator, transformer,
transmission circuit, or other equipment. It is expressed in kW.
Capacity Rate: The rate which sets forth the charges for
capacity. It is expressed in dollars per kWmo.
Composite Rate: The rate for commercial firm power and is the
total annual revenue requirement for capacity and energy divided by
the total annual firm energy sales under contract. It is expressed
in mills/kWh and used for comparison purposes.
Criteria: The Post-1989 General Power Marketing and Allocation
Criteria for the sale of energy with capacity from the Pick-Sloan
Missouri Basin Program--Western Division and the Fryingpan-Arkansas
Project.
Customer: An entity with a contract for and receiving firm
electric service from Western's Rocky Mountain Region.
DOE Order RA 6120.2: An order outlining power marketing
administration financial reporting and rate-making procedures.
Energy: That which does or is capable of doing work. It is
measured in terms of the work it is capable of doing over a period
of time. It is expressed in kWh.
Energy Rate: The rate which sets forth the charges for energy.
It is expressed in mills per kWh and applied to each kWh delivered
to each customer.
Firm: A type of product and/or service that is available at the
time requested by the customer.
FY: Fiscal year; October 1 to September 30.
kW: Kilowatt--the electrical unit of capacity that equals 1,000
watts.
kWmo: Kilowattmonth--the electrical unit of the monthly amount
of capacity.
kWh: Kilowatthour--the electrical unit of energy that equals
1,000 watts in 1 hour.
kilowattyear: Kilowattyear--the electrical unit of the yearly
amount of capacity.
L-F4: Loveland Area Projects existing firm electric service rate
schedule (expires March 31, 2004, or until superseded).
L-F5: Loveland Area Projects provisional firm electric service
rate schedule (effective February 1, 2004).
M&I: Municipal and industrial water development.
mills/kWh: Mills per kilowatthour--the unit of charge for energy
(equals one tenth of a cent or one thousandth of a dollar).
Power: Capacity and energy.
Preference: The requirements of Reclamation Law which provide
that preference in the sale of Federal power shall be given to
municipalities and other public corporations or agencies and also to
cooperatives and other nonprofit organizations financed in whole or
in part by loans made under the Rural Electrification Act of 1936
(Reclamation Project Act of 1939, section 9(c), 43 U.S.C. 485h(c)).
Provisional Rates: Rate schedules which have been confirmed,
approved, and placed into effect on an interim basis by the Deputy
Secretary of DOE.
Rate Brochure: A document prepared for public distribution
explaining the rationale
[[Page 646]]
and background of the rate proposal contained in this rate order and
dated June 2003.
Reclamation Law: A series of Federal laws. Viewed as a whole,
these laws create the originating framework in which Western markets
power.
Revenue Requirement: The revenue required to recover operation
and maintenance expenses, purchased power and transmission service
expenses, interest, deferred expenses, repayment of Federal
investments, and other assigned costs.
Tiered Rate: Pick-Sloan Missouri Basin Program--Eastern Division
rate applied to energy in excess of 60% load factor.
Effective Date
The provisional rates will become effective on an interim basis
on the first day of the first full billing period beginning on or
after February 1, 2004, and will be in effect pending the
Commission's approval of them or substitute rates on a final basis
for 5 years ending December 31, 2008, or until superseded.
Public Notice and Comment
The Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions, 10 CFR 903, have been
followed by Western in developing these rates. The following
summarizes the steps Western took to ensure involvement of
interested parties in the rate process:
1. The proposed rate adjustment was initiated on March 25, 2003,
when letters announcing informal meetings to discuss the proposed
firm electric service rate adjustment were mailed to all LAP
preference customers and interested parties. These informational
meetings were held on April 14, 2003, in Denver, CO, and on April
15, 2003, in Lincoln, NE. At these informal meetings, Western
explained the rationale for the rate adjustment, presented rate
designs and methodologies, and answered questions.
2. On June 6, 2003, letters were mailed to all LAP preference
customers and interested parties announcing the upcoming publication
of a Federal Register notice (FRN) for proposed LAP rates and
announcing dates and times for public information and public comment
forums.
3. An FRN was published on June 13, 2003 (68 FR 35401),
officially announcing proposed LAP rates, initiating the public
consultation and comment period, and announcing the public
information and public comment forums.
4. On June 19, 2003, letters were mailed to all LAP preference
customers and interested parties transmitting a copy of the FRN
published on June 13, 2003 (68 FR 35401) initiating the public rate
process.
5. The public information forums were held on July 14, 2003,
beginning at 1 p.m. MDT, in Denver, CO, and again on July 15, 2003,
beginning at 9 a.m. CDT, in Lincoln, NE. Western provided detailed
explanations of the proposed LAP rates, provided a list of issues
that could change the proposed rates, and answered questions. A rate
brochure detailing the proposed rates was provided at the forums.
6. The public comment forum was held on August 6, 2003,
beginning at 1 p.m. MDT, in Denver, CO. Western gave the public an
opportunity to comment for the record. No oral comments were made
and no written comments were received during the comment forum.
7. Four comment letters were received during the consultation
and comment period. The consultation and comment period ended
September 11, 2003. All formally submitted comments have been
considered in preparing this rate order.
8. Western's Rocky Mountain Region provided a Web site with all
of the letters, time frames, dates and locations of forums,
documents discussed at the information meetings, Federal Register
notices and all other information regarding this rate process for
customer access.
Project Descriptions
Loveland Area Projects
The Post-1989 General Power Marketing and Allocation Criteria
(Criteria), published in the Federal Register on January 31, 1986
(51 FR 4012), integrated the resources of the Pick-Sloan Missouri
Basin Program--Western Division (P-SMBP--WD) and the Fryingpan-
Arkansas Project (Fry-Ark). This operational and contractual
integration, known as LAP, allowed an increase in marketable
resource, simplified contract administration, and established a
blended rate for LAP power sales.
However, the P-SMBP--WD and Fry-Ark retain separate financial
status. For this reason, separate Power Repayment Studies (PRS) are
prepared annually for each project. These PRSs are used to determine
the ability of the power rate to generate sufficient revenue to
repay project investment and costs during each project's prescribed
repayment period. The revenue requirement of the Fry-Ark PRS is
combined with the P-SMBP--WD revenue requirement derived from the
Pick-Sloan Missouri Basin Program (P-SMBP) PRS, to develop one rate
for LAP firm electric sales.
Pick-Sloan Missouri Basin Program--Western Division
The initial stages of the Missouri River Basin Project were
authorized by section 9 of the Flood Control Act of December 22,
1944 (Pub. L. 78-534, 58 Stat. 877, 891). The Missouri River Basin
Project, later renamed the Pick-Sloan Missouri Basin Program to
honor its two principal authors, has been under construction since
1944. The P-SMBP encompasses a comprehensive program of flood
control, navigation improvement, irrigation, municipal and
industrial (M&I) water development, and hydroelectric production for
the entire Missouri River Basin. Multipurpose projects have been
developed on the Missouri River and its tributaries in Colorado,
Montana, Nebraska, North Dakota, South Dakota and Wyoming.
The Colorado-Big Thompson, Kendrick, Riverton and Shoshone
projects were administratively combined with P-SMBP in 1954,
followed by the North Platte Project in 1959. These projects are
known as the ``Integrated Projects'' of the P-SMBP. The Riverton
Project was reauthorized as a unit of the P-SMBP in 1970.
The P-SMBP--WD and the Integrated Projects include 19
powerplants. There are six powerplants in the P-SMBP--WD: Glendo,
Kortes, and Fremont Canyon powerplants on the North Platte River;
Boysen and Pilot Butte on the Wind River; and Yellowtail powerplant
on the Big Horn River.
In the Colorado-Big Thompson Project, there are also six
powerplants. Green Mountain powerplant on the Blue River is on the
West Slope of the Rocky Mountains. Marys Lake, Estes, Pole Hill,
Flatiron and Big Thompson powerplants are on the East Slope of the
Continental Divide.
The Kendrick Project has two power production facilities: Alcova
and Seminoe powerplants. Power production facilities in the Shoshone
Project are Shoshone, Buffalo Bill, Heart Mountain and Spirit
Mountain powerplants. The only production facility in the North
Platte Project is the Guernsey powerplant.
Fryingpan-Arkansas Project
The Fry-Ark is a transmountain diversion development in
southeastern Colorado authorized by the Act of Congress on August
16, 1962 (Pub. L. 87-590, 76 Stat. 389, as amended by Title XI of
the Act of Congress on October 27, 1974 (Pub. L. 93-493, 88 Stat.
1486, 1497). The Fry-Ark diverts water from the Fryingpan River and
other tributaries of the Roaring Fork River in the Colorado River
Basin on the West Slope of the Rocky Mountains to the Arkansas River
on the East Slope of the Continental Divide. The water diverted from
the West Slope, together with regulated Arkansas River water,
provide supplemental irrigation and M&I water supplies and produce
hydroelectric power. Flood control, fish and wildlife enhancement
and recreation are other important purposes of Fry-Ark. The only
generating facility in Fry-Ark is the Mt. Elbert Pumped-Storage
Powerplant on the East Slope of the Rocky Mountains.
Power Repayment Studies
PRSs are prepared each fiscal year to determine if power
revenues will be sufficient to pay, within the prescribed time
periods, all costs assigned to the LAP power function. Repayment
criteria are based on law, policies, DOE Order RA 6120.2 and
authorizing legislation.
Existing and Provisional Rates
Existing and provisional rates for LAP firm electric service are
designed to recover an annual revenue requirement that includes the
investment repayment, interest, purchased power, and O&M expenses.
The provisional rates reflect increased purchased power expenses due
to the extended poor water conditions experienced in the region as
well as costs associated with increased O&M expenses. The
provisional rates will be implemented in two steps. The first step
is to become effective on the first day of the first full billing
period beginning on or after February 1, 2004. The second step is to
become effective on the first day of the first full billing period
beginning on or after October 1, 2004. Under Rate Schedule L-F5, the
provisional rates for LAP firm electric service will result in an
overall composite rate increase of approximately 10 percent. A
[[Page 647]]
comparison of the existing and provisional rates for LAP firm
electric service follows:
Comparison of Existing and Provisional Rates LAP Firm Electric Service
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First step provisional Second step
rates and percent provisional rates and
Firm electric service Existing rates change, effective Feb. percent change,
1, 2004 effective Oct 1, 2004
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Rate Schedule...................... L-F4 L-F5 L-F5
Composite Rate (mills/kWh)......... 21.70 23.44 (8%) 23.90 (2%)
Firm Capacity ($/kWmo)............. $2.85 $3.08 (8.1%) $3.14 (1.9%)
Firm Energy (mills/kWh)............ 10.85 11.72 (8%) 11.95 (2%)
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Certificate of Rate
Western's Administrator has certified that the LAP firm electric
service rates under Rate Schedule L-F5 are the lowest possible rates
consistent with sound business principles. The provisional rates
were developed following administrative policies and applicable
laws.
Discussion
According to Reclamation Law, Western must establish power rates
sufficient to recover operation, maintenance, and purchased power
expenses, and repay the Federal Government's investment in
generation and transmission facilities. Rates must also be set to
cover interest expenses on the unpaid balance of facilities'
investments, replacements and additions, and certain non-power costs
in excess of the irrigation users' ability to repay.
The Criteria were published in the Federal Register on January
31, 1986 (51 FR 4012). The Criteria operationally and contractually
integrated the resources of the P-SMBP--WD and Fry-Ark. The
integrated resources are referred to as LAP. A blended rate was
established for the sale of LAP power. The P-SMBP--WD piece of the
revenue requirements for the LAP firm electric service rates was
developed from the revenue requirement calculated in the P-SMBP FY
2003 Rate-Setting PRS. The P-SMBP--WD revenue requirement increased
approximately 14 percent due to increased purchased power costs due
to extended poor water as well as costs associated with increased
O&M expenses. The adjustment to the P-SMBP revenue requirement is a
separate formal rate process which is documented in Rate Order No.
WAPA-110. Rate Order No. WAPA-110 is also scheduled to go into
effect on the first day of the first full billing period beginning
on or after February 1, 2004. The revenue requirements for P-SMBP--
WD are as follows:
Summary of P-SMBP--WD Revenue Requirements
------------------------------------------------------------------------
P-SMBP--WD revenue
requirement
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Proposed Increase--First Step (February 1, 2004):
Present Revenue Requirement (15.80 mills/kWh x $31,410,400
1,988,000,000 kWh)............................
Proposed First Step Increase (1.79 mills/kWh x 3,558,520
1,988,000,000 kWh)............................
Proposed Revenue Requirement--First Increment 34,968,920
(17.59 mills/kWh x 1,988,000,000 kWh).........
Proposed Increase--Second Step (October 1, 2004):
Revenue Requirement--First Increment (17.59 $34,968,920
mills/kWh x 1,988,000,000 kWh)................
Proposed Second Step Increase (.47 mills/kWh x 934,360
1,988,000,000 kWh)............................
Proposed Revenue Requirement--Second Increment 35,903,280
(18.06 mills/kWh x 1,988,000,000 kWh).........
------------------------------------------------------------------------
The Fry-Ark piece of the revenue requirements for the LAP firm
electric service rates was developed from the revenue requirement
calculated in the Fry-Ark FY 2003 Rate-Setting PRS, which has been
updated to reflect the most current information. The Fry-Ark revenue
requirement contains two components. The project has an average
annual energy generation of 52 gigawatthours from flow-through
water. The remaining revenue requirement is derived from the firm
capacity component. This is the procedure used in the study to
account for the Fry-Ark portion of the energy marketed by LAP. The
Fry-Ark Ratesetting PRS indicates that the existing annual revenue
requirement of $12,855,560 meets all requirements for annual
expenses and capital repayment. Therefore, no increase is necessary.
A table comparing the LAP existing revenue requirement to the
proposed revenue requirements is shown below:
Summary of LAP Revenue Requirements
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First Step Second Step
Existing (February 2004) (October 2004)
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P-SMBP--WD.......................................... $31,410,400 $34,968,920 $35,903,280
Fry-Ark............................................. 12,855,560 12,855,560 12,855,560
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Total LAP....................................... 44,265,960 47,824,480 48,758,840
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[[Page 648]]
Statement of Revenue and Related Expenses
The following table provides a summary of Fry-Ark revenues and
expenses for the 5-year proposed rate approval period:
Fryingpan-Arkansas Project Comparison of 5-Year Rate Approval Period Revenues and Expenses ($1,000)
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Existing rate PRS Provisional PRS
(FY 2004-2008) (FY 2004-2008) Difference
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Total Revenues...................................... 68,208 69,065 857
Revenue Distribution:
Operations and Maintenance...................... 17,248 20,607 3,359
Purchased Power and Transmission................ 13,180 19,894 6,714
Interest........................................ 28,323 21,247 (7,076)
Investment Repayment............................ 256 7,317 7,061
Capitalized Expenses............................ 9,201 0 (9,201)
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Total....................................... 68,208 69,065 857
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The summary of P-SMBP--WD revenues and expenses for the 5-year
proposed rate approval period is included in the P-SMBP Statement of
Revenue and Related Expenses that is part of Rate Order No. WAPA-
110.
Basis for Rate Development
The P-SMBP PRS calculates the composite rate in mills/kWh for
future firm power (capacity and energy) sales. In the Fry-Ark PRS,
the study calculates the capacity rate in dollars per kilowattyear.
The rate is adjusted until sufficient revenues are generated to meet
the cost-recovery requirement.
The proposed LAP firm power service rate is designed to recover
50 percent of the revenue requirement from the capacity rate and 50
percent from the energy rate. The capacity rate is calculated by
dividing 50 percent of the total annual revenue requirement by the
number of billing units (kWmo) in a year. The energy rate is
calculated by dividing 50 percent of the total annual revenue
requirement by the annual energy sales under contract.
The existing rates for LAP firm electric service in Rate
Schedule L-F4 expire March 31, 2004. The provisional rates will
provide sufficient revenue to pay all annual costs, including
interest expense, and repayment of required investment within the
allowable period. The provisional rates are scheduled to go into
effect on February 1, 2004, subject to final approval by the
Commission, and will remain in effect through December 31, 2008.
Comments
During the public consultation and comment period, Western
received four written comments pertaining to this rate adjustment.
There were no comments during the August 6, 2003, public comment
forum. All comments received by the end of the public consultation
and comment period, September 11, 2003, were reviewed and considered
in preparing this rate order. Written comments were received from:
Loveland Area Customer Association, Kansas Electric Power
Cooperative, Inc., Kansas Tri-State Generation and Transmission
Association, Inc., Colorado Mni Sose Intertribal Water Rights
Coalition, South Dakota.
The comments received dealt with controlling purchased power
costs, the two-step rate proposal, and the tiered rate of the P-
SMBP--ED. Comments that apply to P-SMBP only are being answered in
the Rate Order No. WAPA-110. Comments and responses applicable to
LAP, paraphrased for brevity, are discussed below.
Comment: Western received three comments in support of
implementing the two-step rate adjustment.
Response: The two-step rate adjustment proposal meets all
repayment requirements according to DOE Order RA 6120.2, and since
the majority of the customers support the two-step rate adjustment,
Western will implement the first step of the two-step rate
adjustment on February 1, 2004, and the second step of the two-step
rate adjustment on October 1, 2004.
Comment: One commenter suggested that Western decrease its
purchased power costs by not purchasing power to meet Western's
commitment to the tribal customers in drought years. Instead, the
commenter suggests that Western pay the Tribes a lump sum in the
amount of the benefit they would have received from their power
allocation.
Response: Paying the Tribes in lieu of purchasing power to
support delivery of Tribal allocations is outside the scope of this
rate process. Western has the obligation under its existing LAP
marketing plan and contracts to deliver firm power to customers.
Environmental Compliance
Following the National Environmental Policy Act (NEPA) of 1969,
42 U.S.C. 4321, et seq.; Council on Environmental Quality
Regulations, 40 CFR 1500-1508; and DOE NEPA Regulations, 10 CFR
1021, Western has determined that this action is categorically
excluded from preparation of an environmental assessment or an
environmental impact statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review
under Executive Order 12866; so no clearance of this notice by the
Office of Management and Budget is required.
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 final 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 determined that this action does not require a regulatory
flexibility analysis since it is a rulemaking involving rates or
services for public property.
Small Business Regulatory Enforcement Fairness Act
Western determined that this rule is exempt from congressional
notification requirements under 5 U.S.C. 801 because the action is a
rulemaking relating to rates or services and involves matters of
procedure.
Availability of Information
Information regarding this rate adjustment, including PRSs,
comments, letters, memorandums, and other supporting material made
or kept by Western for the purpose of developing the provisional
rates, is available for public review in the Office of the Power
Marketing Manager, Rocky Mountain Customer Service Regional Office,
Western Area Power Administration, 5555 East Crossroads Boulevard,
Loveland, Colorado, and in the Power Marketing Liaison Office, Room
8G-027, 1000 Independence Avenue SW., Washington, DC.
Submission to the Federal Energy Regulatory Commission
The rates herein confirmed, approved, and placed into effect on
an interim basis, together with supporting documents, will be
submitted to the Commission for confirmation and approval on a final
basis.
Order
In view of the foregoing and by the authority delegated to me by
the Secretary, I confirm and approve on an interim basis, effective
February 1, 2004, Rate Schedule L-F5 for LAP of Western. The rate
schedule shall remain in effect on an interim basis, pending the
Commission's confirmation and approval of them or substitute rates
on a final basis through December 31, 2008.
[[Page 649]]
Dated: December 24, 2003.
Kyle E. McSlarrow,
Deputy Secretary.
Loveland Area Projects, Colorado, Kansas, Nebraska, Wyoming; Schedule
of Rates for Firm Electric Service
Effective:
First Step: Beginning on the first day of the first full billing
period on or after February 1, 2004, through September 30, 2004.
Second Step: Beginning on the first day of the first full
billing period on or after October 1, 2004, through December 31,
2008.
Available:
Within the marketing area served by the Loveland Area Projects.
Applicable:
To the wholesale power customers for firm power service supplied
through one meter at one point of delivery, or as otherwise
established by contract.
Character:
Alternating current, 60 hertz, three phase, delivered and
metered at the voltages and points established by contract.
Monthly Rates:
First Step:
Demand Charge: $3.08 per kilowatt (kW) of billing demand.
Energy Charge: 11.72 mills per kilowatthour (kWh) of use.
Billing Demand: Unless otherwise specified by contract, the
billing demand will be the seasonal contract rate of delivery.
Second Step:
Demand Charge: $3.14 per kilowatt (kW) of billing demand.
Energy Charge: 11.95 mills per kilowatthour (kWh) of use.
Billing Demand: Unless otherwise specified by contract, the
billing demand will be the seasonal contract rate of delivery.
Adjustments:
For Transformer Losses: If delivery is made at transmission
voltage but metered on the low-voltage side of the substation, the
meter readings will be increased to compensate for transformer
losses as provided for in the contract.
For Power Factor: None. The customer will be required to
maintain a power factor at all points of measurement between 95-
percent lagging and 95-percent leading.
[FR Doc. 04-204 Filed 1-5-04; 8:45 am]
BILLING CODE 6450-01-P