[Federal Register: September 26, 2007 (Volume 72, Number 186)]
[Notices]
[Page 54652-54654]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26se07-62]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam Power Rate Schedule
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective
December 6, 2001, and 00-001.00C, effective January 31, 2007, the
Deputy Secretary of Energy has approved and placed into effect on an
interim basis Rate Order No. SWPA-58, which increases the power rate
for the Sam Rayburn Dam (Rayburn) pursuant to the following Sam Rayburn
Dam Rate Schedule:
Rate Schedule SRD-07, Wholesale Rates for Hydropower and Energy
Sold to Sam Rayburn Dam Electric Cooperative, Inc., (Contract No.
DE-PM75-92SW00215).
DATES: The effective period for the rate schedule specified in Rate
Order No. SWPA-58 is October 1, 2007, through September 30, 2011.
FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Assistant
Administrator, Office of Corporate Operations, Southwestern Power
Administration, Department of Energy, One West Third Street, Tulsa,
Oklahoma 74103, (918) 595-6690, jim.mcdonald@swpa.gov.
SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for
Rayburn is $2,816,064 per year. The Federal Energy Regulatory
Commission approved this rate on a final basis on June 15, 2006, for
the period January 1, 2006, through September 30, 2009. The 2007
Rayburn Power Repayment Studies indicates the need for an increase in
the annual rate by $640,632 or 22.8 percent beginning October 1, 2007.
The Administrator, Southwestern Power Administration (Southwestern)
has followed Title 10, Part 903 Subpart A, of the Code of Federal
Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions'' in connection with the
proposed rate schedule. On May 23, 2007, Southwestern published notice
in the Federal Register (72 FR 28963) of a 90-day comment period,
together with a Public Information and Comment Forum, to provide an
opportunity for customers and other interested members of the public to
review and comment on a proposed rate increase for Rayburn. The public
forum was canceled when no one expressed an intention to
[[Page 54653]]
participate. Written comments were accepted through August 21, 2007.
One comment was received from Gillis & Angley, LLP, Counsellors at Law,
on behalf of Sam Rayburn Municipal Power Authority, the Vinton Public
Power Authority, and the Sam Rayburn Dam Electric Cooperative, which
stated that they had no objection to the proposed rate adjustment.
Information regarding this rate proposal, including studies and
other supporting material, is available for public review and comment
in the offices of Southwestern Power Administration, One West Third
Street, Tulsa, Oklahoma 74103.
Following review of Southwestern's proposal within the Department
of Energy, I approved Rate Order No. SWPA-58, on an interim basis,
which increases the existing Rayburn rate to $3,456,696, per year, for
the period October 1, 2007, through September 30, 2011.
Dated: September 13, 2007.
Clay Sell,
Deputy Secretary of Energy.
United States of America, Department of Energy, Deputy Secretary of
Energy
[Rate Order No. SWPA-58]
In the Matter of: Southwestern Power Administration; Sam Rayburn Dam
Project Rate; Order Confirming, Approving and Placing Increased Power
Rate Schedule in Effect on an Interim Basis
Pursuant to sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern
Power Administration (Southwestern) were transferred to and vested in
the Secretary of Energy. By Delegation Order No. 0204-108, effective
December 14, 1983, the Secretary of Energy delegated to the
Administrator of Southwestern the authority to develop power and
transmission rates, delegated to the Deputy Secretary of Energy the
authority to confirm, approve, and place in effect such rates on an
interim basis, and delegated to the Federal Energy Regulatory
Commission (FERC) the authority to confirm and approve and place in to
effect on a final basis or to disapprove rates developed by the
Administrator under the delegation. Delegation Order No. 0204-108, as
amended, was rescinded and subsequently replaced by Delegation Orders
00-037.00 (December 6, 2001) and 00-001-00C (January 31, 2007). The
Deputy Secretary of Energy issued this rate order pursuant to said
delegations.
Background
The Sam Rayburn Dam (Rayburn) is located on the Angelina River in
the State of Texas in the Neches River Basin. Since the beginning of
its operation in 1965, it has been marketed as an isolated project,
under contract with Sam Rayburn Dam Electric Cooperative, Inc. (SRDEC)
(Contract No. DE-PM75-92SW00215). SRDEC is comprised of two separate
entities, the Sam Rayburn G&T, and the Sam Rayburn Municipal Power
Agency.
On June 15, 2006, in Docket No. EF06-4021-000, FERC confirmed and
approved the current annual Rayburn rate of $2,816,064 for the period
January 1, 2006, through September 30, 2009.
Discussion
Southwestern's 2007 Current Power Repayment Study (PRS) indicates
that the existing annual power rate of $2,816,064 does not meet cost
recovery criteria. The increased revenue requirement is due to an
increase in the U.S. Army Corps of Engineers projected future
replacement investment. The Revised PRS indicates that an increase in
annual revenues of $640,632 beginning October 1, 2007, is sufficient to
accomplish repayment of the Federal investment in the required number
of years. Accordingly, Southwestern developed a proposed rate schedule
based on that increased revenue requirement.
Title 10, Part 903, Subpart A of the Code of Federal Regulations,
``Procedures for Public Participation in Power and Transmission Rate
Adjustments and Extensions,'' has been followed in connection with the
proposed rate adjustment. More specifically, opportunities for public
review and comment during a 90-day period on the proposed Rayburn power
rate were announced by a Federal Register (72 FR 28963) notice
published on May 23, 2007. A Public Information and Comment Forum was
scheduled to be held June 27, 2007, in Tulsa, Oklahoma. The forum was
canceled as no one expressed an intention to participate. Written
comments were due by August 21, 2007. Southwestern provided the Federal
Register notice, together with requested supporting data, to the
customer and interested parties for review and comment during the
formal period of public participation. In addition, prior to the formal
90-day public participation process, Southwestern discussed with the
customer representatives the preliminary information on the proposed
rate adjustment. Only one formal comment was received from Gillis &
Angley, LLP, Counsellors at Law, on behalf of Sam Rayburn Municipal
Power Agency, Vinton Public Power Authority, and the Sam Rayburn Dam
Electric Cooperative, Inc., which stated that they had no objection to
the proposed rate adjustment.
Upon conclusion of the comment period in August 2007, Southwestern
finalized the PRS and rate schedule for the proposed annual rate of
$3,456,696, which is the lowest possible rate needed to satisfy
repayment criteria. This rate represents an annual increase of 22.8
percent.
Availability of Information
Information regarding this rate increase, including studies and
other supporting material, is available for public review and comment
in the offices of Southwestern Power Administration, One West Third
Street, Tulsa, Oklahoma 74103.
Comments and Responses
Southwestern received one written comment in which the customer
representative expressed no objection to the proposed rate adjustment.
Other Issues
There were no other issues raised during the informal period or
during the formal public participation period.
Administrator's Certification
The 2007 Revised Rayburn PRS indicates that the annual power rate
of $3,456,696 will repay all costs of the project, including
amortization of the power investment consistent with provisions of the
DOE Order RA 6120.2. In accordance with Delegation Order Nos. 00-037.00
(December 6, 2001) and 00-001.00C (January 31, 2007), and section 5 of
the Flood Control Act of 1944, the Administrator has determined that
the proposed Rayburn power rate is consistent with applicable law and
the lowest possible rate consistent with sound business principles.
Environment
The environmental impact of the rate increase proposal was
evaluated in consideration of DOE's guidelines for implementing the
procedural provisions of the National Environmental Policy Act, (10 CFR
Part 1021, Subpart D, App. B4.3), and was determined to fall within the
class of actions that are categorically excluded from the requirements
of preparing either an Environmental Impact Statement or an
Environmental Assessment.
[[Page 54654]]
Order
In view of the foregoing and pursuant to the authority delegated to
me, I hereby confirm, approve and place in effect on an interim basis,
for the period October 1, 2007, through September 30, 2011, the annual
Sam Rayburn Dam rate of $3,456,696 for the sale of power and energy
from Sam Rayburn Dam to the Sam Rayburn Dam Electric Cooperative, Inc.,
under Contract No. DE-PM75-92SW00215, dated October 7, 1992.
This rate shall remain in effect on an interim basis through
September 30, 2011, or until the FERC confirms and approves the rate on
a final basis.
Dated: September 13, 2007.
Clay Sell,
Deputy Secretary of Energy.
United States Department of Energy; Southwestern Power Administration
[Rate Schedule SRD-07]
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\*\ Supersedes Rate Schedule SRD-05.
Wholesale Rates for Hydro Power and Energy Sold to Sam Rayburn Dam
Electric Cooperative, Inc. (Contract No. DE-PM75-92SW00215)
Effective
During the period October 1, 2007, through September 30, 2011, in
accordance with Rate Order No. 58, issued by the Deputy Secretary of
Energy on September 13, 2007.
Applicable
To the power and energy purchased by Sam Rayburn Dam Electric
Cooperative, Inc. (SRDEC) from the Southwestern Power Administration
(Southwestern) under the terms and conditions of the Power Sales
Contract dated October 7, 1992, for the sale of all Hydro Power and
Energy generated at the Sam Rayburn Dam.
Character and Conditions of Service
Three-phase alternating current, delivered at approximately 60
hertz, at the nominal voltage and point of delivery, and in such
quantities as provided by contract.
Monthly Rates
SRDEC shall compensate Southwestern for Sam Rayburn Dam Hydro Power
and Energy purchased by SRDEC, in the amount of $288,058 per month
($3,456,696 per year).
The preceding rate shall be applicable regardless of the quantity
of Hydro Power and Energy available or delivered to SRDEC; provided,
however, that if an ``Uncontrollable Force'' prevents utilization of
both of the project's power generating units for an entire billing
period, and if during such billing period water releases were being
made which otherwise would have been used to generate Hydro Power and
Energy, then Southwestern shall, upon request by SRDEC, suspend billing
for subsequent billing periods, until such time as at least one of the
project's generating units is again available.
[FR Doc. E7-18950 Filed 9-25-07; 8:45 am]
BILLING CODE 6450-01-P