[Federal Register: June 22, 2004 (Volume 69, Number 119)]
[Notices]
[Page 34667-34669]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn04-78]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Parker-Davis Project, Pacific Northwest-Pacific Southwest
Intertie Project, and the Central Arizona Project
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed rates.
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SUMMARY: The Western Area Power Administration (Western) is initiating
a rate adjustment process for a firm transmission rate for Projects in
the Desert Southwest Customer Service Region. The multi-system
transmission rate (MSTR) will apply to three transmission systems: the
Parker-Davis Project (P-DP), the Pacific Northwest-Pacific Southwest
Intertie Project (Intertie), and the Central Arizona Project (CAP) for
rate purposes. The proposed MSTR will provide sufficient revenue to pay
all annual costs, including interest expense and repayment of required
investment, within the allowable period for the three transmission
systems. A detailed rate brochure that identifies the reasons for
proposing a multi-system transmission rate is available on Western's
Web site (http://www.wapa.gov/dsw/pwrmkt/MSTRP/MSTRP.htm). The proposed
MSTR is scheduled to become effective on January 1, 2005, and will
remain in effect through December 31, 2009. Publication of this Federal
Register notice initiates the formal process for the proposed rate
adjustment.
DATES: The consultation and comment period will begin today and will
end September 20, 2004. Western representatives will explain the
proposed MSTR at a public information forum on July 14, 2004, beginning
at 10 a.m. MST, in Phoenix, AZ. Western will receive oral and written
comments at a public comment forum on August 11, 2004, beginning at 10
a.m. MST, in Phoenix, AZ.
ADDRESSES: Written comments should be sent to: Mr. J. Tyler Carlson,
Regional
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Manager, Desert Southwest Customer Service Region, Western Area Power
Administration, PO Box 6457, Phoenix, AZ 85005-6457, e-mail
carlson@wapa.gov. Western must receive written comments by the end of
the consultation and comment period to ensure they are considered in
Western's decision process. The public information forum and public
comment forum will be held at: Desert Southwest Customer Service
Regional Office, located at 615 South 43rd Avenue, Phoenix, Arizona.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Team Lead,
Desert Southwest Customer Service Region, Western Area Power
Administration, PO Box 6457, Phoenix, AZ 85005-6457, telephone (602)
352-2442, e-mail: jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION:
Proposed Multi-System Transmission Rate
The proposed MSTR is designed to recover an annual revenue
requirement that includes the annual transmission costs for P-DP,
Intertie, and CAP, including investment repayment. The MSTR will be
determined by the total transmission Revenue Requirements from each of
the three projects divided by the total system reservations and
estimates of network sales for the three projects. A stepped rate will
be applied during the first 5 years to mitigate the cost shift to those
customers who do not have concurrent service over two or more Projects
(termed pancaked service). This stepped rate will be determined as
follows: DSW will calculate a target rate to be achieved in the fifth
year following the effective date of the MSTR. The single system
transmission rate (SSTR) for each Project in the first 4 years will be
the prior year rate increased/decreased each year by an amount equal to
25 percent of the difference between the target rate and the rate in
effect in the year prior to the MSTR effective date. In the fifth year,
all projects will pay the target rate. The stepped rate is illustrated
in Table 1. The total revenue collected during the 5 years will be
adequate to meet all expenses of each Project during the 5-year period.
Table 1.--Comparison of SSTR to MSTR for Rate Period
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P-DP CAP IP 230/345-kV IP 500-kV Multi-System
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FY 2004............................ $1.08 /kW-Mo.......... $0.82 /kW-Mo.......... $1.00 /kW-Mo......... $1.44 /kW-Mo......... n/a
FY 2005............................ 1.11 /kW-Mo........... 0.82 /kW-Mo........... 1.00 /kW-Mo.......... 1.44 /kW-Mo.......... n/a
FY 2006............................ 1.12 /kW-Mo........... 0.90 /kW-Mo........... 1.04 /kW-Mo.......... 1.37 /kW-Mo.......... n/a
FY 2007............................ 1.13 /kW-Mo........... 0.99 /kW-Mo........... 1.08 /kW-Mo.......... 1.30 /kW-Mo.......... n/a
FY 2008............................ 1.14 /kW-Mo........... 1.07 /kW-Mo........... 1.11 /kW-Mo.......... 1.22 /kW-Mo.......... n/a
FY 2009............................ 1.15 /kW-Mo........... 1.15 /kW-Mo........... 1.15 /kW-Mo.......... 1.15 /kW-Mo.......... 1.15 /kW-Mo
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The rate will be effective on January 1, 2005, and will remain in
effect through December 31, 2009. Schedules will be updated every
fiscal year on October 1, to reflect current financial and load data.
The target rate may be changed as a result of the yearly update to
ensure revenues collected over the 5 year period will be adequate to
meet all expenses for each project. The MSTR will supersede each
Project's SSTR. Revenue derived from the MSTR will be allocated to the
Projects based on each individual Project's percentage of the MSTR
revenue requirement.
Firm Electric Service (FES) and Priority Use Power (PUP) customers
who take service under existing marketing plans will continue to
receive a bundled product which includes an appropriate transmission
component charge. The FES or PUP customers that choose to take
advantage of the broader MSTR transmission service will pay the MSTR.
In the near term and in accordance with the existing contractual
commitments, FES and PUP customers that continue to take limited
service delivery solely on the P-DP system will receive a credit for
the difference between the MSTR and the transmission component of the
P-DP bundled Power rate.
Procedural Requirements
Western will hold both a public information forum and a public
comment forum. After a review of public comments, possible amendments
or adjustments, Western will recommend the Deputy Secretary of Energy
approve the proposed MSTR on an interim basis. The proposed MSTR is
being established pursuant to the DOE Organization Act, (42 U.S.C.
7152); 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
that specifically apply to the P-DP, Intertie, and CAP transmission
projects.
By Delegation Order No. 00'037.00 approved December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates on a nonexclusive basis to Western's Administrator;
(2) the authority to confirm, approve, and place such rates into effect
on an interim basis to the Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place into effect on a final basis,
to remand, or to disapprove such rates to the Federal Energy Regulatory
Commission. Existing DOE procedures for public participation in power
rate adjustments (10 CFR 903) were published on September 18, 1985 (50
FR 37835).
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Western initiates or uses to develop the proposed MSTR,
are available for inspection and copying at the Desert Southwest
Customer Service Regional Office, located at 615 South 43rd Avenue,
Phoenix, Arizona. Many of these documents and supporting information
are also available on the DSW Web site at: http://www.wapa.gov/dsw/pwrmkt/MSTRP/MSTRP.htm
.
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 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. This action does not
require a regulatory flexibility analysis since it is a rulemaking of
particular applicability, involving rates or services applicable to
public property.
Environmental Compliance
In compliance with the National Environmental Policy Act of 1969
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(NEPA) (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
preparing 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; accordingly, no clearance by the Office of
Management and Budget is required.
Small Business Regulatory Enforcement Fairness Act
Western has determined that this rule is exempt from congressional
notification requirements under 5 U.S.C. 801 because the action is a
rulemaking of particular applicability relating to rates or services
and involves matters of procedure.
Dated: June 7, 2004.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 04-14081 Filed 6-21-04; 8:45 am]
BILLING CODE 6450-01-P