[Federal Register: March 2, 2006 (Volume 71, Number 41)]
[Notices]
[Page 10664-10666]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02mr06-43]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed base charge and rates adjustment.
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SUMMARY: The Western Area Power Administration (Western) is proposing
an adjustment to the Boulder Canyon Project (BCP) electric service base
charge and rates. The current base charge and rates expire September
30, 2006. The current base charge is not sufficient to pay all annual
costs including operation, maintenance, replacements, interest expense,
and to repay investment obligations within the required period. The
proposed base charge will provide sufficient revenue to pay all annual
costs and to repay investment obligations within the allowable period.
A detailed rate package that identifies the reasons for the base charge
and rates adjustment will be available in March 2006. The
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proposed base charge and rates are scheduled to become effective on
October 1, 2006, and will remain in effect through September 30, 2007.
This Federal Register notice initiates the formal process for the
proposed base charge and rates.
DATES: The consultation and comment period will begin today and will
end May 31, 2006. Western representatives will explain the proposed
base charge and rates at a public information forum on April 4, 2006,
beginning at 10:30 a.m. MST, in Phoenix, Arizona (AZ). Interested
parties can provide oral and written comments at a public comment forum
on May 3, 2006, beginning at 10:30 a.m. MST, at the same location.
ADDRESSES: The meetings will be held at the Desert Southwest Customer
Service Regional Office, located at 615 South 43rd Avenue, Phoenix, AZ.
Send comments to: Mr. J. Tyler Carlson, Regional Manager, Desert
Southwest Customer Service Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-6457, e-mail carlson@wapa.gov. Western
will post information about the rate process on its Web site at http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm.
Western must receive
comments by the end of the consultation and comment period to be
assured consideration.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Team Lead,
Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602)
605-2442, e-mail jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The proposed base charge and rates for BCP
electric service are designed to recover an annual revenue requirement
that includes the investment repayment, interest, operation and
maintenance, replacements, payment to states, visitor services and
uprating payments. These annual costs are reduced by the projected
revenue from water sales, visitor services, water pump energy sales,
facility use charges, regulation and spinning reserve services,
miscellaneous leases and late fees. The projected annual revenue
requirement is the base charge for electric service and is divided
equally between capacity and energy. Annual energy dollars are divided
by annual energy sales, and annual capacity dollars are divided by
annual capacity sales to determine the proposed energy rate and the
proposed capacity rate.
The Deputy Secretary of the Department of Energy (DOE) approved the
existing rate formula for calculating the base charge and rates in Rate
Schedule BCP-F7 for BCP firm power service on August 11, 2005, (Rate
Order No. WAPA-120, 70 FR 50316, August 26, 2005). The rate formula has
been submitted to the Federal Energy Regulatory Commission for
approval. Rate Schedule BCP-F7 became effective on October 1, 2005, for
the period ending September 30, 2010. Under Rate Schedule BCP-F7 for FY
2007, the base charge is $62,177,350, the forecasted energy rate is
8.10 mills per kilowatthour (mills/kWh), the forecasted capacity rate
is $1.48 per kilowattmonth (kWmonth) and the composite rate is 16.21
mills/kWh.
Under Rate Schedule BCP-F7, the proposed rates for BCP electric
service will result in an overall composite rate increase of about 15
percent. The following table compares the current and proposed base
charge and rates.
Comparison of Current and Proposed Base Charge and Rates
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Current October Proposed October
1, 2005 through 1, 2006 through Percent change
September 30, September 30, increase
2006 2007
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Total Composite (mills/kWh)............................ 14.05 16.21 15
Base Charge ($)........................................ 57,465,018 62,177,350 8
Energy Rate (mills/kWh)................................ 7.03 8.10 15
Capacity Rate ($/kWmonth).............................. 1.37 1.48 8
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The increase in the base charge and rates is primarily the result
of higher annual costs in operation and maintenance and lower revenue
projections for the visitor center, as well as continued drought
conditions. Additionally, the FY 2006 base charge and rates included a
carry-over of non-reimbursable security costs from FY 2005, which had
the effect of suppressing the FY 2006 base charge.
Legal Authority
Western will hold both a public information forum and a public
comment forum. After considering comments, Western will recommend the
proposed base charge and rates for final approval by the Deputy
Secretary of Energy.
Western is establishing an electric service base charge and rates
for BCP under 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 project involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates 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 Commission. Existing Department of Energy
(DOE) procedures for public participation in power rate adjustments (10
CFR part 903) were published on September 18, 1985 (50 FR 37835).
Availability of Information
Interested parties may review and copy all brochures, studies,
comments, letters, memorandums or other documents that Western
initiates or uses to develop the proposed rates. These documents are
available for inspection and copying at the Desert Southwest Customer
Service Regional Office, located at 615 South 43rd Avenue, Phoenix, AZ.
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
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is a rulemaking specifically involving rates or services applicable to
public property.
Environmental Compliance
In compliance with the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.); Council On Environmental Quality
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR
part 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 of this notice 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: February 15, 2006.
Michael S. Hacskaylo,
Administrator.
[FR Doc. E6-2955 Filed 3-1-06; 8:45 am]
BILLING CODE 6450-01-P