80 FR 61205 - Robert D. Willis Power Rate

DEPARTMENT OF ENERGY
Southwestern Power Administration

Federal Register Volume 80, Issue 196 (October 9, 2015)

The Acting Administrator, Southwestern Power Administration (Southwestern), has prepared Current and Revised 2015 Power Repayment Studies for the Robert D. Willis project which show the need for an increase in annual revenues to meet cost recovery criteria. Such increased revenues are needed primarily to cover the costs associated with increased operations and maintenance costs, increased interest expense plus increased costs associated with investments and replacements in the hydroelectric generating facilities. The Acting Administrator of Southwestern has developed a proposed Robert D. Willis Rate Schedule, which is supported by power repayment studies, to recover the required revenues. The Revised 2015 Power Repayment Study indicates that the proposed Rate Schedule would increase annual revenues approximately 8.6 percent from $1,181,496 to $1,282,836 effective January 1, 2016 through September 30, 2019.

[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)]
[Notices]
[Pages 61205-61206]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25644]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Robert D. Willis Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of public review and comment.

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SUMMARY: The Acting Administrator, Southwestern Power Administration 
(Southwestern), has prepared Current and Revised 2015 Power Repayment 
Studies for the Robert D. Willis project which show the need for an 
increase in annual revenues to meet cost recovery criteria. Such 
increased revenues are needed primarily to cover the costs associated 
with increased operations and maintenance costs, increased interest 
expense plus increased costs associated with investments and 
replacements in the hydroelectric generating facilities. The Acting 
Administrator of Southwestern has developed a proposed Robert D. Willis 
Rate Schedule, which is supported by power repayment studies, to 
recover the required revenues. The Revised 2015 Power Repayment Study 
indicates that the proposed Rate Schedule would increase annual 
revenues approximately 8.6 percent from $1,181,496 to $1,282,836 
effective January 1, 2016 through September 30, 2019.

DATES: The consultation and comment period will end on November 9, 
2015. If requested, a combined Public Information and Comment Forum 
(Forum) will be held in Tulsa, Oklahoma at 9:00 a.m. on October 28, 
2015. Persons desiring the Forum to be held must send a written request 
for such Forum to the Senior Vice President, Chief Operating Officer 
(see FOR FUTHER INFORMATION CONTACT) by October 16, 2015. If no request 
is received, the Forum will not be held.

ADDRESSES: If requested, the Forum will be held in Southwestern's 
offices, Room 1460, Williams Center Tower I, One West Third Street, 
Tulsa, Oklahoma 74103.

FOR FURTHER INFORMATION CONTACT: Marshall Boyken, Senior Vice 
President, Chief Operating Officer, Office of Corporate Operations, 
Southwestern Power Administration, U.S. Department of Energy, One West 
Third Street, Tulsa, Oklahoma 74103, (918) 595-6646, 
[email protected].

SUPPLEMENTARY INFORMATION: Originally established by Secretarial Order 
No. 1865 dated August 31, 1943, Southwestern is an agency within the 
U.S. Department of Energy (DOE) created by the Department of Energy 
Organization Act, Public Law 95-91, dated August 4, 1977.
    Southwestern markets power from 24 multi-purpose reservoir projects 
with hydroelectric power facilities constructed and operated by the 
U.S. Army Corps of Engineers (Corps). These projects are located in the 
states of Arkansas, Missouri, Oklahoma, and Texas. Southwestern's 
marketing area includes these states plus Kansas and Louisiana. The 
costs associated with the hydropower facilities of 22 of the 24 
projects are repaid via revenues received under the Integrated System 
rates, as are the costs associated with Southwestern's transmission 
facilities that consist of 1,380 miles of high-voltage transmission 
lines, 25 substations, and 46 microwave and VHF radio sites. Costs 
associated with the Sam Rayburn and Robert D. Willis Dams, two Corps 
projects that are isolated hydraulically, electrically, and financially 
from the Integrated System, are repaid by separate rate schedules.
    Guidelines for preparation of power repayment studies are included 
in DOE Order No. RA 6120.2 entitled Power Marketing Administration 
Financial Reporting. Following DOE guidelines, Southwestern prepared a 
2015 Current Power Repayment Study using the existing Robert D. Willis 
Rate Schedule.\1\ This study indicates that Southwestern's legal 
requirement to repay the investment in the power generating facility 
for power and energy marketed by Southwestern will not be met without 
an increase in revenues. The need for increased revenues is primarily 
due to increased operations and maintenance costs, increased interest 
expense plus increased costs associated with investments and 
replacements in the Corps hydroelectric generating facilities. The 2015 
Revised Power Repayment Study shows that additional annual revenues of 
$101,340 (an 8.6 percent increase), beginning January 1, 2016, are 
needed to satisfy repayment criteria.
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    \1\ FERC, on June 3, 2015, confirmed and approved the existing 
Robert D. Willis rate schedule for the period January 1, 2015 
through September 30, 2018. See 151 FERC ] 62,156.
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    Due to concerns expressed by Southwestern's customers during the 
development of the 2015 Power Repayment Studies regarding 
implementation of the proposed increase just a few months after fully 
implementing the existing rate schedule which consisted of a 10.2 
percent revenue increase, Southwestern is proposing to increase revenue 
in two steps over a two-year period. Because Southwestern's current 
rates are sufficient to recover all average operation and maintenance 
expenses during the next two years, the ability to meet both annual and 
long-term repayment criteria is satisfied by increasing revenues in two 
steps over the period.
    The first step of the rate increase, beginning January 1, 2016, 
would incorporate one half of the required revenue or 4.3 percent 
($50,670). The second step of the rate increase, beginning January 1, 
2017 and ending on September 30, 2019, would incorporate the remaining 
revenue

[[Page 61206]]

requirement ($50,670 or 4.3 percent). Southwestern will continue to 
perform its Power Repayment Studies annually, and if the 2016 results 
should indicate the need for additional revenues, another rate filing 
will be conducted and updated revenue requirements implemented for 
fiscal year 2017 and thereafter.
    Procedures for public participation in power and transmission rate 
adjustments of the Power Marketing Administrations are found at title 
10, part 903, subpart A of the Code of Federal Regulations (10 CFR part 
903). Southwestern's customers and other interested parties may request 
copies of the 2015 Robert D. Willis Power Repayment Studies and the 
proposed Rate Schedule. Submit requests to the Director, Division of 
Resources and Rates, Office of Corporate Operations, Southwestern Power 
Administration, One West Third, Tulsa, OK 74103, (918) 595-6684 or via 
email to [email protected].
    If requested a Public Information and Comment Forum (Forum) will be 
held on October 28, 2015, to explain to customers and interested 
parties the proposed Rate Schedule and supporting 2015 Power Repayment 
Studies, and to allow for comment. A chairman, who will be responsible 
for orderly procedure, will conduct the Forum if requested. Questions 
concerning the rates, studies, and information presented at the Forum 
will be answered, to the extent possible, at the Forum. Questions not 
answered at the Forum will be answered in writing. Questions involving 
voluminous data contained in Southwestern's records may best be 
answered by consultation and review of pertinent records at 
Southwestern's offices.
    Persons requesting that a Forum be held should indicate in writing 
to the Senior Vice President and Chief Operating Officer (see FOR 
FURTHER INFORMATION CONTACT) by letter, email, or facsimile 
transmission (918-595-6646) by October 16, 2015, their request for such 
a Forum. If no request is received, no such Forum will be held. Persons 
interested in speaking at the Forum, if held, should submit a request 
to the Senior Vice President and Chief Operating Officer, Southwestern, 
at least seven (7) calendar days prior to the Forum so that a list of 
forum participants can be developed. The chairman may allow others to 
speak if time permits.
    A transcript of the Forum, if held, will be made. Copies of the 
transcript and all documents introduced will be available for review at 
Southwestern's offices (see ADDRESSES) during normal business hours. 
Copies of the transcript and all documents introduced may also be 
obtained, for a fee, from the transcribing service. A copy of all 
written comments or an electronic copy in MS Word on the proposed 
Robert D. Willis Rate Schedule is due on or before November 9, 2015. 
Comments should be submitted to the Senior Vice President and Chief 
Operating Officer, Southwestern, (see FOR FURTHER INFORMATION CONTACT).
    Procedures for the confirmation and approval of rates for the 
Federal Power Marketing Administrations are found at title 18, part 
300, subpart L of the Code of Federal Regulations (18 CFR part 300). 
The Acting Administrator will review and consider oral and written 
comments and the information gathered in the course of the proceeding 
when submitting the finalized Robert D. Willis Power Repayment Studies 
and Rate Schedule Proposal in support of the proposed rate to the 
Deputy Secretary of Energy for confirmation and approval on an interim 
basis, and subsequently to the Federal Energy Regulatory Commission for 
confirmation and approval on a final basis. Once submitted for final 
confirmation and approval, the Commission will allow the public an 
opportunity to provide written comments on the proposed rate increase 
before making a final decision.

    Dated: September 30, 2015.
Scott Carpenter,
Acting Administrator.
[FR Doc. 2015-25644 Filed 10-8-15; 8:45 am]
BILLING CODE 6450-01-P