80 FR 61205 - Robert D. Willis Power Rate

DEPARTMENT OF ENERGY
Southwestern Power Administration

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

Page Range		61205-61206
FR Document		2015-25644

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 Issue 196 (Friday, October 9, 2015)

[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]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Southwestern Power Administration


Robert D. Willis Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of public review and comment.

-----------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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

Federal Register / Vol. 80, No. 196 / Friday, October 9, 2015 / Notices 61205

Description: § 205(d) Rate Filing: which show the need for an increase in rates, as are the costs associated with
2015–09–14_SA 2839 ATXI–AIC annual revenues to meet cost recovery Southwestern’s transmission facilities
Construction Agreement (Kansas criteria. Such increased revenues are that consist of 1,380 miles of high-
Substation) to be effective 9/14/2015. needed primarily to cover the costs voltage transmission lines, 25
Filed Date: 9/14/15. associated with increased operations substations, and 46 microwave and VHF
Accession Number: 20150914–5088. and maintenance costs, increased radio sites. Costs associated with the
Comments Due: 5 p.m. ET 10/5/15. interest expense plus increased costs Sam Rayburn and Robert D. Willis
Take notice that the Commission associated with investments and Dams, two Corps projects that are
received the following electric replacements in the hydroelectric isolated hydraulically, electrically, and
reliability filings: generating facilities. The Acting financially from the Integrated System,
Docket Numbers: RR15–18–000. Administrator of Southwestern has are repaid by separate rate schedules.
Applicants: North American Electric developed a proposed Robert D. Willis Guidelines for preparation of power
Rate Schedule, which is supported by repayment studies are included in DOE
Reliability Corporation.
power repayment studies, to recover the Order No. RA 6120.2 entitled Power
Description: Petition of the North
required revenues. The Revised 2015 Marketing Administration Financial
American Electric Reliability
Power Repayment Study indicates that Reporting. Following DOE guidelines,
Corporation for Approval of
the proposed Rate Schedule would Southwestern prepared a 2015 Current
Amendments to Exhibit B to the
increase annual revenues approximately Power Repayment Study using the
Delegation Agreement with SERC
8.6 percent from $1,181,496 to existing Robert D. Willis Rate
Reliability Corporation—Amendments
$1,282,836 effective January 1, 2016 Schedule.1 This study indicates that
to SERC Bylaws.
through September 30, 2019. Southwestern’s legal requirement to
Filed Date: 9/14/15.
DATES: The consultation and comment repay the investment in the power
Accession Number: 20150914–5122.
Comments Due: 5 p.m. ET 10/5/15. period will end on November 9, 2015. generating facility for power and energy
If requested, a combined Public marketed by Southwestern will not be
The filings are accessible in the Information and Comment Forum met without an increase in revenues.
Commission’s eLibrary system by (Forum) will be held in Tulsa, The need for increased revenues is
clicking on the links or querying the Oklahoma at 9:00 a.m. on October 28, primarily due to increased operations
docket number. 2015. Persons desiring the Forum to be and maintenance costs, increased
Any person desiring to intervene or held must send a written request for interest expense plus increased costs
protest in any of the above proceedings such Forum to the Senior Vice associated with investments and
must file in accordance with Rules 211 President, Chief Operating Officer (see replacements in the Corps hydroelectric
and 214 of the Commission’s FOR FUTHER INFORMATION CONTACT) by generating facilities. The 2015 Revised
Regulations (18 CFR 385.211 and October 16, 2015. If no request is Power Repayment Study shows that
385.214) on or before 5 p.m. Eastern received, the Forum will not be held. additional annual revenues of $101,340
time on the specified comment date. ADDRESSES: If requested, the Forum will (an 8.6 percent increase), beginning
Protests may be considered, but be held in Southwestern’s offices, Room January 1, 2016, are needed to satisfy
intervention is necessary to become a 1460, Williams Center Tower I, One repayment criteria.
party to the proceeding. West Third Street, Tulsa, Oklahoma Due to concerns expressed by
eFiling is encouraged. More detailed 74103. Southwestern’s customers during the
information relating to filing development of the 2015 Power
requirements, interventions, protests, FOR FURTHER INFORMATION CONTACT:
Marshall Boyken, Senior Vice President, Repayment Studies regarding
service, and qualifying facilities filings implementation of the proposed
can be found at: http://www.ferc.gov/ Chief Operating Officer, Office of
Corporate Operations, Southwestern increase just a few months after fully
docs-filing/efiling/filing-req.pdf. For implementing the existing rate schedule
other information, call (866) 208–3676 Power Administration, U.S. Department
of Energy, One West Third Street, Tulsa, which consisted of a 10.2 percent
(toll free). For TTY, call (202) 502–8659. revenue increase, Southwestern is
Oklahoma 74103, (918) 595–6646,
Dated: September 14, 2015. marshall.boyken@swpa.gov. proposing to increase revenue in two
Nathaniel J. Davis, Sr., SUPPLEMENTARY INFORMATION: Originally
steps over a two-year period. Because
Deputy Secretary. established by Secretarial Order No. Southwestern’s current rates are
[FR Doc. 2015–25730 Filed 10–8–15; 8:45 am] 1865 dated August 31, 1943, sufficient to recover all average
BILLING CODE 6717–01–P Southwestern is an agency within the operation and maintenance expenses
U.S. Department of Energy (DOE) during the next two years, the ability to
created by the Department of Energy meet both annual and long-term
DEPARTMENT OF ENERGY Organization Act, Public Law 95–91, repayment criteria is satisfied by
dated August 4, 1977. increasing revenues in two steps over
Southwestern Power Administration Southwestern markets power from 24 the period.
multi-purpose reservoir projects with The first step of the rate increase,
Robert D. Willis Power Rate beginning January 1, 2016, would
hydroelectric power facilities
AGENCY: Southwestern Power constructed and operated by the U.S. incorporate one half of the required
Administration, DOE. Army Corps of Engineers (Corps). These revenue or 4.3 percent ($50,670). The
projects are located in the states of second step of the rate increase,
ACTION: Notice of public review and
beginning January 1, 2017 and ending
tkelley on DSK3SPTVN1PROD with NOTICES

comment. Arkansas, Missouri, Oklahoma, and
Texas. Southwestern’s marketing area on September 30, 2019, would
SUMMARY: The Acting Administrator, includes these states plus Kansas and incorporate the remaining revenue
Southwestern Power Administration Louisiana. The costs associated with the 1 FERC, on June 3, 2015, confirmed and approved
(Southwestern), has prepared Current hydropower facilities of 22 of the 24 the existing Robert D. Willis rate schedule for the
and Revised 2015 Power Repayment projects are repaid via revenues period January 1, 2015 through September 30, 2018.
Studies for the Robert D. Willis project received under the Integrated System See 151 FERC ¶ 62,156.

VerDate Sep<11>2014 17:44 Oct 08, 2015 Jkt 238001 PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 E:\FR\FM\09OCN1.SGM 09OCN1

Document Created: 2015-12-15 08:33:21
Document Modified: 2015-12-15 08:33:21

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of public review and comment.
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.
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]
FR Citation		80 FR 61205

80 FR 61205 - Robert D. Willis Power Rate

DEPARTMENT OF ENERGYSouthwestern Power Administration

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

DEPARTMENT OF ENERGY
Southwestern Power Administration