80 FR 61206 - Sam Rayburn Dam 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 Sam Rayburn Dam 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 and increased interest expense associated with investments and replacements in the hydroelectric generating facilities. The Acting Administrator of Southwestern has developed a proposed Sam Rayburn Dam 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 7.9 percent from $4,230,120 to $4,563,792 effective January 1, 2016 through September 30, 2019.

[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)]
[Notices]
[Pages 61206-61207]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25765]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam 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 Sam Rayburn Dam 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 and increased interest 
expense associated with investments and replacements in the 
hydroelectric generating facilities. The Acting Administrator of 
Southwestern has developed a proposed Sam Rayburn Dam 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 7.9 
percent from $4,230,120 to $4,563,792 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 22, 
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 FURTHER 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 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.

[[Page 61207]]

    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 Sam Rayburn Dam 
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 and increased 
interest expense associated with investments and replacements in the 
Corps hydroelectric generating facilities. The 2015 Revised Power 
Repayment Study shows that additional annual revenues of $333,672 (a 
7.9 percent increase), beginning January 1, 2016, are needed to satisfy 
repayment criteria.
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    \1\ FERC, on February 6, 2014, confirmed and approved the 
existing Sam Rayburn Dam rate schedule for the period October 1 2013 
through September 30, 2017. See 146 FERC ] 62,105 (FERC Docket No. 
EF14-2-000).
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    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 Sam Rayburn Dam 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 22, 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 Sam 
Rayburn Dam 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 Sam Rayburn Dam 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. 2015-25765 Filed 10-8-15; 8:45 am]
BILLING CODE 6450-01-P