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Rate Adjustment Procedure

Background

A public information forum and a public comment forum will be held during the consultation and comment period. At these forums, Western will discuss information contained in these documents and receive comments from interested parties. After the consultation and comment period and a review of oral and written comments, Western’s Administrator may develop a provisional firm power rate, firm and non-firm point-to-point and network transmission rates, and ancillary service rates. With the concurrence of the Deputy Secretary of the Department of Energy (DOE), the provisional rates may be confirmed, approved, and placed into effect on an interim basis. The provisional rates will be announced to the public along with an explanation of the principal factors leading to the decision. The provisional rates will then be submitted to FERC for final approval.

Public Process

Procedures adopted by DOE give interested parties an opportunity to participate in the development of power and transmission rates. The published procedures for rate adjustments, as amended, are available upon request from the CRSP MC.

A FRN announcing the proposed rates and the consultation and comment period will be published on March 6, 2002. The FRN signed by the Administrator is enclosed in the appendix of this brochure.

The formal public consultation and comment period will begin with the publication of the FRN and will end on June 4, 2002. During this time, interested parties may consult with and obtain information from Western representatives about the rate proposals. Interested parties also may examine data in the rate proposal PRS and the smaller projects PRSs. Copies of the PRS data, the CRSP transmission rates study, and other supporting materials are available for public review at the:

CRSP Management Center
Western Area Power Administration
150 East Social Hall Plaza, Suite 300
Salt Lake City, UT 84111-1534
Telephone: (801) 524-5493

Public Information & Comment Forums

The Public Information Forum will be held:

March 19, 2002, 10:00 a.m.
Hilton Salt Lake City Center
255 South West Temple
Salt Lake City, Utah

During the Public Information Forum, Western representatives will explain the need for the proposed rate adjustment and answer questions. Questions not answered at the Public Information Forum will be answered in writing at least 15 days before the end of the consultation and comment period. The Public Information Forum will be recorded and transcribed. Copies of the transcript will be available for purchase from the company providing the transcription service.

The Public Comment Forum will be held:

April 23, 2002, 10:00 a.m.
Hilton Salt Lake City Center
255 South West Temple
Salt Lake City, Utah

Interested persons may submit written or oral comments at the public comment forum. As with the public information forum, the public comment forum will be recorded and transcribed. Copies of the transcript will be available for purchase from the company providing the transcription service.

Written Comments

All interested parties may submit written comments to Western any time during the consultation and comment period. Western must receive comments by the end of the consultation and comment period to be assured consideration. Comments should be sent to Mr. David Bennion, Acting CRSP Manager, at the address above, by e-mail to bennion@wapa.gov, or by visiting our web site at www.wapa.gov/crsp/crsp.htm.

Revision of Proposed Rate

During and after the consultation and comment period and the review of oral and written comments, Western may revise the proposed rate(s). If Western’s Administrator decides that further public comment on the revised proposed rate(s) should be invited, a second consultation and comment period may be initiated. In that event, one or more additional public meeting(s) may be convened.

Decision on Proposed or Revised Proposed Rates

Following the end of the consultation and comment period(s), Western’s Administrator will develop proposed rates. The Deputy Secretary may confirm, approve, and place these rates in effect on an interim basis. The decision and an explanation of the principal factors leading to the decision will be announced in the FRN. Western proposes to place the rates in effect on October 1, 2002.

Final Decision on the Rate Adjustment

The Deputy Secretary will submit all information concerning the provisional rates to FERC and request approval of the firm power rate, the firm and non-firm point-to-point and network transmission rates, and ancillary service rates for October 1, 2002, through September 30, 2007. FERC may then confirm and approve the rates on a final basis, remand them to Western, or disapprove them.

Rate Adjustment Schedule

Table 10 displays the CRSP MC’s anticipated schedule for processing the proposed SLCA/IP rate adjustments and proposals.

TABLE 10
CRSP MC’s Anticipated
Rate Adjustment Schedule

Procedure

Schedule

Federal Register Notice of Proposed Rates

March 6, 2002

Public Information Forum

March 19, 2002

Public Comment Forum

April 23, 2002

End of Comment Period

June 4, 2002

Publication of Interim Rate

September 2002

Rate Effective

October 1, 2002