80_FR_80127 80 FR 79881 - Sam Rayburn Dam Project Power Rate

80 FR 79881 - Sam Rayburn Dam Project Power Rate

DEPARTMENT OF ENERGY
Southwestern Power Administration

Federal Register Volume 80, Issue 246 (December 23, 2015)

Page Range79881-79883
FR Document2015-32366

Pursuant to Delegation Order Nos. 00-037.00A, effective October 25, 2013, and 00-001.00F, effective November 17, 2014, the Deputy Secretary has approved and placed into effect on an interim basis Rate Order No. SWPA-69, which increases the power rate for the Sam Rayburn Dam Project (Rayburn) pursuant to the Rayburn Rate Schedule (SRD-15) to supersede the existing rate schedule.

Federal Register, Volume 80 Issue 246 (Wednesday, December 23, 2015)
[Federal Register Volume 80, Number 246 (Wednesday, December 23, 2015)]
[Notices]
[Pages 79881-79883]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32366]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Sam Rayburn Dam Project Power Rate

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Rate Order.

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

SUMMARY: Pursuant to Delegation Order Nos. 00-037.00A, effective 
October 25, 2013, and 00-001.00F, effective November 17, 2014, the 
Deputy Secretary has approved and placed into effect on an interim 
basis Rate Order No. SWPA-69, which increases the power rate for the 
Sam Rayburn Dam Project (Rayburn) pursuant to the Rayburn Rate Schedule 
(SRD-15) to supersede the existing rate schedule.

DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-69 is January 1, 2016, through September 30, 2019.

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

SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-69, which has been 
approved and placed into effect on an interim basis, increases the 
power rate for Rayburn pursuant to the following rate schedule:

    Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Dam Electric Cooperative, Inc. (Contract No. DE-
PM75-92SW00215)

The rate schedule supersedes the existing rate schedule shown below:

    Rate Schedule SRD-13, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Dam Electric Cooperative, Inc. (Contract No. DE-
PM75-92SW00215) (superseded by SRD-15)

Southwestern Power Administration's (Southwestern) Administrator has 
determined, based on the 2015 Rayburn Current Power Repayment Study, 
that the existing power rate will not satisfy cost recovery criteria 
specified in Department of Energy Order No. RA 6120.2 and Section 5 of 
the Flood Control Act of 1944. The finalized 2015 Rayburn Power 
Repayment Studies indicate that an increase in annual revenue of 
$333,672, or 7.9 percent, beginning January 1, 2016, will satisfy cost 
recovery criteria for Rayburn. The proposed Rayburn rate schedule would 
increase annual revenues from $4,230,120 to $4,563,792, to recover the 
costs associated with increased operations and maintenance costs as 
well as increased interest expense associated with investments and 
replacements in the hydroelectric generating facilities.
    The Administrator has followed title 10, part 903 subpart A, of the 
Code of Federal Regulations (10 CFR part 903), ``Procedures for Public 
Participation in Power and Transmission Rate Adjustments and 
Extensions'' in connection with the proposed rate schedule. On October 
9, 2015, Southwestern published notice in the Federal Register, (80 FR 
61206), of the proposed power rate increase for Rayburn. Southwestern 
provided a 30-day comment period as an opportunity for customers and 
other interested members of the public to review and comment on the 
proposed power rate increase with written comments due by November 9, 
2015. Southwestern did not hold the combined Public Information and 
Comment Forum (Forum) because Southwestern did not receive any requests 
to hold the Forum. One comment was received from Gillis, Borchardt and 
Barthel, LLP, on behalf of the Sam Rayburn Dam Electric Cooperative, 
Inc., which stated they had no objection to the proposed rate 
adjustment.
    Information regarding this rate proposal, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, Williams Center 
Tower I, One West Third Street, Tulsa, Oklahoma 74103. Following review 
of Southwestern's proposal within the Department of Energy, I approved 
Rate Order No. SWPA-69 which increases the existing Rayburn power rate 
to $4,563,792 per year for the period January 1, 2016 through September 
30, 2019.

    Dated: December 17, 2015.
Elizabeth Sherwood-Randall,
Deputy Secretary.

DEPARTMENT OF ENERGY

DEPUTY SECRETARY OF ENERGY

In the matter of: Southwestern Power Administration Sam Rayburn Dam 
Project Rate
Rate Order No. SWPA-69

Order Confirming, Approving and Placing Increased Power Rate Schedule 
in Effect on an Interim Basis

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control

[[Page 79882]]

Act of 1944, 16 U.S.C. 825s, relating to the Southwestern Power 
Administration (Southwestern) were transferred to and vested in the 
Secretary of Energy. By Delegation Order No. 00-037.00A, the Secretary 
of Energy delegated to the Administrator of Southwestern the authority 
to develop power and transmission rates, delegated to the Deputy 
Secretary of the Department of Energy the authority to confirm, 
approve, and place in effect such rates on an interim basis, and 
delegated to the Federal Energy Regulatory Commission (FERC) the 
authority to confirm and approve on a final basis or to disapprove 
rates developed by the Administrator under the delegation. Pursuant to 
that delegated authority, the Deputy Secretary issued this interim rate 
order.

BACKGROUND

    The Sam Rayburn Dam (Rayburn) is located on the Angelina River in 
the State of Texas in the Neches River Basin. Since the beginning of 
its operation in 1965, its power has been marketed as an isolated 
project, under contract with Sam Rayburn Dam Electric Cooperative, Inc. 
(SRDEC) (Contract No. DE-PM75-92SW00215).
    FERC confirmation and approval of the current Rayburn rate schedule 
was provided in FERC Docket EF14-2-000 issued on February 6, 2013, (146 
FERC ]62,105) effective for the period October 1, 2013, through 
September 30, 2017.

DISCUSSION

    Southwestern prepared a 2015 Current Power Repayment Study which 
indicated that the existing power rate would not satisfy present 
financial criteria regarding repayment of investment within a 50-year 
period due to increased U.S. Army Corps of Engineers (Corps) operations 
and maintenance expenses as well as increased interest expense 
associated with investments and replacements in the hydroelectric 
generating facilities. The 2015 Revised Power Repayment Study indicated 
the need for a 7.9 percent revenue increase. These preliminary results 
provided the basis for the proposed revenue increase.
    The 2015 Revised Power Repayment Study was finalized and indicates 
that an increase in annual revenues of $333,672 (7.9 percent) is 
necessary beginning January 1, 2016, to accomplish repayment in the 
required number of years. Accordingly, Southwestern has prepared a 
proposed rate schedule based on the additional revenue requirement to 
ensure repayment.
    Southwestern conducted the rate adjustment proceeding in accordance 
with title 10, part 903, subpart A of the Code of Federal Regulations 
(10 CFR part 903), ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions.'' More specifically, 
opportunities for public review and comment during a 30-day period on 
the proposed Rayburn power rate were announced by a Federal Register 
notice published on October 9, 2015 (80 FR 61206), with written 
comments due November 9, 2015. The combined Public Information and 
Comment Forum scheduled for October 28, 2015, in Tulsa, Oklahoma was 
not held because Southwestern did not receive any requests to hold the 
forum. Southwestern provided the Federal Register notice, together with 
any requested supporting data, to the customer and interested parties 
for review and comment during the public comment period.
    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 FY 2017 and thereafter.
    Following the conclusion of the comment period on November 9, 2015, 
Southwestern finalized the Power Repayment Studies and rate schedule 
for the proposed annual rate of $4,563,792 which is the lowest possible 
rate needed to satisfy repayment criteria. This rate represents an 
annual increase of 7.9 percent. The Administrator made the decision to 
submit the rate proposal for interim approval and implementation.

COMMENTS AND RESPONSES

    Southwestern received one comment during the public comment period. 
The comment on behalf of the Sam Rayburn Dam Electric Cooperative, Inc. 
expressed no objection to the proposed rate increase.

AVAILABILITY OF INFORMATION

    Information regarding this power rate increase, including studies, 
comments and other supporting material, is available for public review 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, OK 74103.

ADMINISTRATION'S CERTIFICATION

    The 2015 Rayburn Revised Power Repayment Study indicates that the 
increased power rate of $4,563,792 will repay all costs of the project 
including amortization of the power investment consistent with the 
provisions of Department of Energy Order No. RA 6120.2. In accordance 
with Delegation Order No. 00-037.00A (October 25, 2013), and Section 5 
of the Flood Control Act of 1944, the Administrator has determined that 
the proposed Rayburn power rate is consistent with applicable law and 
is the lowest possible rate consistent with sound business principles.

ENVIRONMENT

    The environmental impact of the power rate increase proposal was 
evaluated in consideration of the Department of Energy's guidelines for 
implementing the procedural provisions of the National Environmental 
Policy Act and was determined to fall within the class of actions that 
are categorically excluded from the requirements of preparing either an 
Environmental Impact Statement or an Environmental Assessment. (10 CFR 
part 1021, App. B to Subpart D, Sec.  B1.1 ``Changing rates & 
prices'').

ORDER

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm, approve and place in 
effect on an interim basis, effective January 1, 2016, through 
September 30, 2019, the annual Rayburn rate of $4,563,792 for the sale 
of power and energy from Rayburn to the Sam Rayburn Dam Electric 
Cooperative Inc., under Contract No. DE-PM75-92SW00215. This rate shall 
remain in effect on an interim basis through September 30, 2019, or 
until the FERC confirms and approves the rate on a final basis, or 
until it is superseded by a subsequent rate.

Dated: December 17, 2015.

Dr. Elizabeth Sherwood-Randall,
Deputy Secretary

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE SRD-15 \1\
---------------------------------------------------------------------------

    \1\ Supersedes Rate Schedule SRD-13.
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WHOLESALE RATES FOR HYDRO POWER AND ENERGY

SOLD TO SAM RAYBURN DAM ELECTRIC COOPERATIVE, INC.

(CONTRACT NO. DE-PM75-92SW00215)

Effective:

    During the period January 1, 2016, through September 30, 2019, in 
accordance with interim approval from Rate Order No.SWPA-69 issued by 
the

[[Page 79883]]

Deputy Secretary of Energy on December 17, 2015, and pursuant to final 
approval by the Federal Energy Regulatory Commission.

Applicable:

    To the power and energy purchased by Sam Rayburn Dam Electric 
Cooperative, Inc., (SRDEC) from the Southwestern Power Administration 
(Southwestern) under the terms and conditions of the Power Sales 
Contract dated October 7, 1992, for the sale of all Hydro Power and 
Energy generated at the Sam Rayburn Dam.

Character and Conditions of Service:

    Three-phase, alternating current, delivered at approximately 60 
Hertz, at the nominal voltage, at the point of delivery, and in such 
quantities as are specified by contract.

1. Wholesale Rates, Terms, and Conditions for Hydro Power and Energy

    1.1. These rates shall be applicable regardless of the quantity of 
Hydro Power and Energy available or delivered to SRDEC; provided, 
however, that if an Uncontrollable Force prevents utilization of both 
of the project's power generating units for an entire billing period, 
and if during such billing period water releases were being made which 
otherwise would have been used to generate Hydro Power and Energy, then 
Southwestern shall, upon request by SRDEC, suspend billing for 
subsequent billing periods, until such time as at least one of the 
project's generating units is again available.
    1.2. The term ``Uncontrollable Force,'' as used herein, shall mean 
any force which is not within the control of the party affected, 
including, but not limited to, failure of water supply, failure of 
facilities, flood, earthquake, storm, lightning, fire, epidemic, riot, 
civil disturbance, labor disturbance, sabotage, war, acts of war, 
terrorist acts, or restraint by court of general jurisdiction, which by 
exercise of due diligence and foresight such party could not reasonably 
have been expected to avoid.
    1.3. Hydro Power Rates, Terms, and Conditions
    1.3.1. Monthly Charge for the Period of January 1, 2016 through 
September 30, 2019
    $380,316 per month ($4,563,792 per year) for Sam Rayburn Dam Hydro 
Power and Energy purchased by SRDEC from January 1, 2016, through 
September 30, 2019.

[FR Doc. 2015-32366 Filed 12-22-15; 8:45 am]
BILLING CODE 6450-01-P



                                                                       Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Notices                                           79881

                                              Practice and Procedure, 18 CFR                          DEPARTMENT OF ENERGY                                  operations and maintenance costs as
                                              385.207(a)(2) (2014), Williams Field                                                                          well as increased interest expense
                                              Services—Gulf Coast Company LP                          Southwestern Power Administration                     associated with investments and
                                              (Williams Gulf Coast) submitted a                                                                             replacements in the hydroelectric
                                                                                                      Sam Rayburn Dam Project Power Rate                    generating facilities.
                                              petition for declaratory order seeking a
                                              ruling that certain natural gas pipeline                AGENCY: Southwestern Power                               The Administrator has followed title
                                              and appurtenant facilities (WGC                         Administration, DOE.                                  10, part 903 subpart A, of the Code of
                                              Lateral), to be constructed in support of                                                                     Federal Regulations (10 CFR part 903),
                                                                                                      ACTION: Notice of Rate Order.
                                                                                                                                                            ‘‘Procedures for Public Participation in
                                              a new ultra-deep water oil and gas
                                                                                                      SUMMARY:   Pursuant to Delegation Order               Power and Transmission Rate
                                              production project, will perform a
                                                                                                      Nos. 00–037.00A, effective October 25,                Adjustments and Extensions’’ in
                                              gathering function and therefore will be                                                                      connection with the proposed rate
                                              exempt from the Commission’s                            2013, and 00–001.00F, effective
                                                                                                      November 17, 2014, the Deputy                         schedule. On October 9, 2015,
                                              jurisdiction pursuant to section l(b) of                                                                      Southwestern published notice in the
                                              the Natural Gas Act, 15 U.S.C. 717, et                  Secretary has approved and placed into
                                                                                                      effect on an interim basis Rate Order No.             Federal Register, (80 FR 61206), of the
                                              seq.                                                                                                          proposed power rate increase for
                                                                                                      SWPA–69, which increases the power
                                                 Any person desiring to intervene or to               rate for the Sam Rayburn Dam Project                  Rayburn. Southwestern provided a 30-
                                              protest this filing must file in                        (Rayburn) pursuant to the Rayburn Rate                day comment period as an opportunity
                                              accordance with Rules 211 and 214 of                    Schedule (SRD–15) to supersede the                    for customers and other interested
                                              the Commission’s Rules of Practice and                  existing rate schedule.                               members of the public to review and
                                              Procedure (18 CFR 385.211, 385.214).                                                                          comment on the proposed power rate
                                                                                                      DATES: The effective period for the rate
                                              Protests will be considered by the                                                                            increase with written comments due by
                                                                                                      schedule specified in Rate Order No.                  November 9, 2015. Southwestern did
                                              Commission in determining the                           SWPA–69 is January 1, 2016, through                   not hold the combined Public
                                              appropriate action to be taken, but will                September 30, 2019.                                   Information and Comment Forum
                                              not serve to make protestants parties to                FOR FURTHER INFORMATION CONTACT: Mr.                  (Forum) because Southwestern did not
                                              the proceeding. Any person wishing to                   Marshall Boyken, Senior Vice President,               receive any requests to hold the Forum.
                                              become a party must file a notice of                    Chief Operating Officer, Southwestern                 One comment was received from Gillis,
                                              intervention or motion to intervene, as                 Power Administration, U.S. Department                 Borchardt and Barthel, LLP, on behalf of
                                              appropriate. Such notices, motions, or                  of Energy, Williams Center Tower I, One               the Sam Rayburn Dam Electric
                                              protests must be filed on or before the                 West Third Street, Tulsa, Oklahoma                    Cooperative, Inc., which stated they had
                                              comment date. Anyone filing a motion                    74103, (918) 595–6646,                                no objection to the proposed rate
                                              to intervene or protest must serve a copy               marshall.boyken@swpa.gov.                             adjustment.
                                              of that document on the Petitioner.                     SUPPLEMENTARY INFORMATION: Rate Order                    Information regarding this rate
                                                 The Commission encourages                            No. SWPA–69, which has been                           proposal, including studies and other
                                              electronic submission of protests and                   approved and placed into effect on an                 supporting material, is available for
                                              interventions in lieu of paper using the                interim basis, increases the power rate               public review and comment in the
                                                                                                      for Rayburn pursuant to the following                 offices of Southwestern Power
                                              ‘‘eFiling’’ link at http://www.ferc.gov.
                                                                                                      rate schedule:                                        Administration, Williams Center Tower
                                              Persons unable to file electronically
                                                                                                        Rate Schedule SRD–15, Wholesale Rates
                                                                                                                                                            I, One West Third Street, Tulsa,
                                              should submit an original and 5 copies                                                                        Oklahoma 74103. Following review of
                                              of the protest or intervention to the                   for Hydro Power and Energy Sold to Sam
                                                                                                      Rayburn Dam Electric Cooperative, Inc.                Southwestern’s proposal within the
                                              Federal Energy Regulatory Commission,                   (Contract No. DE–PM75–92SW00215)                      Department of Energy, I approved Rate
                                              888 First Street NE., Washington, DC                                                                          Order No. SWPA–69 which increases
                                              20426.                                                  The rate schedule supersedes the
                                                                                                                                                            the existing Rayburn power rate to
                                                                                                      existing rate schedule shown below:
                                                 This filing is accessible on-line at                                                                       $4,563,792 per year for the period
                                              http://www.ferc.gov, using the                            Rate Schedule SRD–13, Wholesale Rates               January 1, 2016 through September 30,
                                                                                                      for Hydro Power and Energy Sold to Sam                2019.
                                              ‘‘eLibrary’’ link and is available for                  Rayburn Dam Electric Cooperative, Inc.
                                              review in the Commission’s Public                       (Contract No. DE–PM75–92SW00215)                        Dated: December 17, 2015.
                                              Reference Room in Washington, DC.                       (superseded by SRD–15)                                Elizabeth Sherwood-Randall,
                                              There is an ‘‘eSubscription’’ link on the                                                                     Deputy Secretary.
                                                                                                      Southwestern Power Administration’s
                                              Web site that enables subscribers to                    (Southwestern) Administrator has
                                              receive email notification when a                                                                             DEPARTMENT OF ENERGY
                                                                                                      determined, based on the 2015 Rayburn
                                              document is added to a subscribed                       Current Power Repayment Study, that                   DEPUTY SECRETARY OF ENERGY
                                              docket(s). For assistance with any FERC                 the existing power rate will not satisfy              In the matter of: Southwestern Power
                                              Online service, please email                            cost recovery criteria specified in                   Administration Sam Rayburn Dam Project
                                              FERCOnlineSupport@ferc.gov, or call                     Department of Energy Order No. RA                     Rate
                                              (866) 208–3676 (toll free). For TTY, call               6120.2 and Section 5 of the Flood                     Rate Order No. SWPA–69
                                              (202) 502–8659.                                         Control Act of 1944. The finalized 2015
                                                                                                      Rayburn Power Repayment Studies                       Order Confirming, Approving and
                                                 Comment Date: 5:00 p.m. Eastern
                                                                                                      indicate that an increase in annual                   Placing Increased Power Rate Schedule
                                              Time on January 7, 2016.
                                                                                                                                                            in Effect on an Interim Basis
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                      revenue of $333,672, or 7.9 percent,
                                                Dated: December 17, 2015.
                                                                                                      beginning January 1, 2016, will satisfy                 Pursuant to Sections 302(a) and
                                              Nathaniel J. Davis, Sr.,                                cost recovery criteria for Rayburn. The               301(b) of the Department of Energy
                                              Deputy Secretary.                                       proposed Rayburn rate schedule would                  Organization Act, Public Law 95–91, the
                                              [FR Doc. 2015–32269 Filed 12–22–15; 8:45 am]            increase annual revenues from                         functions of the Secretary of the Interior
                                              BILLING CODE 6717–01–P                                  $4,230,120 to $4,563,792, to recover the              and the Federal Power Commission
                                                                                                      costs associated with increased                       under Section 5 of the Flood Control


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                                              79882                    Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Notices

                                              Act of 1944, 16 U.S.C. 825s, relating to                with title 10, part 903, subpart A of the             Department of Energy Order No. RA
                                              the Southwestern Power Administration                   Code of Federal Regulations (10 CFR                   6120.2. In accordance with Delegation
                                              (Southwestern) were transferred to and                  part 903), ‘‘Procedures for Public                    Order No. 00–037.00A (October 25,
                                              vested in the Secretary of Energy. By                   Participation in Power and                            2013), and Section 5 of the Flood
                                              Delegation Order No. 00–037.00A, the                    Transmission Rate Adjustments and                     Control Act of 1944, the Administrator
                                              Secretary of Energy delegated to the                    Extensions.’’ More specifically,                      has determined that the proposed
                                              Administrator of Southwestern the                       opportunities for public review and                   Rayburn power rate is consistent with
                                              authority to develop power and                          comment during a 30-day period on the                 applicable law and is the lowest
                                              transmission rates, delegated to the                    proposed Rayburn power rate were                      possible rate consistent with sound
                                              Deputy Secretary of the Department of                   announced by a Federal Register notice                business principles.
                                              Energy the authority to confirm,                        published on October 9, 2015 (80 FR
                                              approve, and place in effect such rates                                                                       ENVIRONMENT
                                                                                                      61206), with written comments due
                                              on an interim basis, and delegated to the               November 9, 2015. The combined                          The environmental impact of the
                                              Federal Energy Regulatory Commission                    Public Information and Comment                        power rate increase proposal was
                                              (FERC) the authority to confirm and                     Forum scheduled for October 28, 2015,                 evaluated in consideration of the
                                              approve on a final basis or to disapprove               in Tulsa, Oklahoma was not held                       Department of Energy’s guidelines for
                                              rates developed by the Administrator                    because Southwestern did not receive                  implementing the procedural provisions
                                              under the delegation. Pursuant to that                  any requests to hold the forum.                       of the National Environmental Policy
                                              delegated authority, the Deputy                         Southwestern provided the Federal                     Act and was determined to fall within
                                              Secretary issued this interim rate order.               Register notice, together with any                    the class of actions that are categorically
                                                                                                      requested supporting data, to the                     excluded from the requirements of
                                              BACKGROUND
                                                                                                      customer and interested parties for                   preparing either an Environmental
                                                 The Sam Rayburn Dam (Rayburn) is                     review and comment during the public                  Impact Statement or an Environmental
                                              located on the Angelina River in the                    comment period.                                       Assessment. (10 CFR part 1021, App. B
                                              State of Texas in the Neches River                        Southwestern will continue to                       to Subpart D, § B1.1 ‘‘Changing rates &
                                              Basin. Since the beginning of its                       perform its Power Repayment Studies                   prices’’).
                                              operation in 1965, its power has been                   annually, and if the 2016 results should
                                              marketed as an isolated project, under                                                                        ORDER
                                                                                                      indicate the need for additional
                                              contract with Sam Rayburn Dam                           revenues, another rate filing will be                    In view of the foregoing and pursuant
                                              Electric Cooperative, Inc. (SRDEC)                      conducted and updated revenue                         to the authority delegated to me by the
                                              (Contract No. DE–PM75–92SW00215).                       requirements implemented for FY 2017                  Secretary of Energy, I hereby confirm,
                                                 FERC confirmation and approval of                    and thereafter.                                       approve and place in effect on an
                                              the current Rayburn rate schedule was                     Following the conclusion of the                     interim basis, effective January 1, 2016,
                                              provided in FERC Docket EF14–2–000                      comment period on November 9, 2015,                   through September 30, 2019, the annual
                                              issued on February 6, 2013, (146 FERC                   Southwestern finalized the Power                      Rayburn rate of $4,563,792 for the sale
                                              ¶62,105) effective for the period October               Repayment Studies and rate schedule                   of power and energy from Rayburn to
                                              1, 2013, through September 30, 2017.                    for the proposed annual rate of                       the Sam Rayburn Dam Electric
                                              DISCUSSION                                              $4,563,792 which is the lowest possible               Cooperative Inc., under Contract No.
                                                                                                      rate needed to satisfy repayment                      DE–PM75–92SW00215. This rate shall
                                                Southwestern prepared a 2015                          criteria. This rate represents an annual              remain in effect on an interim basis
                                              Current Power Repayment Study which                     increase of 7.9 percent. The                          through September 30, 2019, or until the
                                              indicated that the existing power rate                  Administrator made the decision to                    FERC confirms and approves the rate on
                                              would not satisfy present financial                     submit the rate proposal for interim                  a final basis, or until it is superseded by
                                              criteria regarding repayment of                         approval and implementation.                          a subsequent rate.
                                              investment within a 50-year period due
                                              to increased U.S. Army Corps of                         COMMENTS AND RESPONSES                                Dated: December 17, 2015.
                                              Engineers (Corps) operations and                                                                              Dr. Elizabeth Sherwood-Randall,
                                                                                                        Southwestern received one comment                   Deputy Secretary
                                              maintenance expenses as well as                         during the public comment period. The
                                              increased interest expense associated                   comment on behalf of the Sam Rayburn                  UNITED STATES DEPARTMENT OF
                                              with investments and replacements in                    Dam Electric Cooperative, Inc.                        ENERGY
                                              the hydroelectric generating facilities.                expressed no objection to the proposed                SOUTHWESTERN POWER
                                              The 2015 Revised Power Repayment                        rate increase.                                        ADMINISTRATION
                                              Study indicated the need for a 7.9
                                              percent revenue increase. These                         AVAILABILITY OF INFORMATION                           RATE SCHEDULE SRD–15 1
                                              preliminary results provided the basis                    Information regarding this power rate               WHOLESALE RATES FOR HYDRO
                                              for the proposed revenue increase.                      increase, including studies, comments                 POWER AND ENERGY
                                                The 2015 Revised Power Repayment                      and other supporting material, is
                                              Study was finalized and indicates that                  available for public review in the offices            SOLD TO SAM RAYBURN DAM
                                              an increase in annual revenues of                       of Southwestern Power Administration,                 ELECTRIC COOPERATIVE, INC.
                                              $333,672 (7.9 percent) is necessary                     One West Third Street, Tulsa, OK                      (CONTRACT NO. DE–PM75–
                                              beginning January 1, 2016, to                           74103.                                                92SW00215)
                                              accomplish repayment in the required
                                                                                                      ADMINISTRATION’S CERTIFICATION                        Effective:
tkelley on DSK3SPTVN1PROD with NOTICES




                                              number of years. Accordingly,
                                              Southwestern has prepared a proposed                      The 2015 Rayburn Revised Power                        During the period January 1, 2016,
                                              rate schedule based on the additional                   Repayment Study indicates that the                    through September 30, 2019, in
                                              revenue requirement to ensure                           increased power rate of $4,563,792 will               accordance with interim approval from
                                              repayment.                                              repay all costs of the project including              Rate Order No.SWPA–69 issued by the
                                                Southwestern conducted the rate                       amortization of the power investment
                                              adjustment proceeding in accordance                     consistent with the provisions of                       1 Supersedes   Rate Schedule SRD–13.



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                                                                       Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Notices                                            79883

                                              Deputy Secretary of Energy on                           DEPARTMENT OF ENERGY                                  recover increased costs associated with
                                              December 17, 2015, and pursuant to                                                                            operations and maintenance as well as
                                              final approval by the Federal Energy                    Southwestern Power Administration                     increased costs for investments and
                                              Regulatory Commission.                                                                                        replacements in the hydroelectric
                                                                                                      Robert D. Willis Hydropower Project
                                              Applicable:                                                                                                   generating facility and the associated
                                                                                                      Power Rate
                                                                                                                                                            increased interest expense, with one
                                                To the power and energy purchased                     AGENCY: Southwestern Power                            half (4.3 percent) beginning January 1,
                                              by Sam Rayburn Dam Electric                             Administration, DOE.                                  2016, and the remaining one half (4.3
                                              Cooperative, Inc., (SRDEC) from the                     ACTION: Notice of rate order.                         percent) beginning on January 1, 2017.
                                              Southwestern Power Administration
                                              (Southwestern) under the terms and                                                                               The Administrator has followed title
                                                                                                      SUMMARY:   Pursuant to Delegation Order
                                              conditions of the Power Sales Contract                  Nos. 00–037.00A, effective October 25,                10, part 903 subpart A, of the Code of
                                              dated October 7, 1992, for the sale of all              2013, and 00–001.00F, effective                       Federal Regulations (10 CFR part 903),
                                              Hydro Power and Energy generated at                     November 17, 2014, the Deputy                         ‘‘Procedures for Public Participation in
                                              the Sam Rayburn Dam.                                    Secretary has approved and placed into                Power and Transmission Rate
                                                                                                      effect on an interim basis Rate Order No.             Adjustments and Extensions’’ in
                                              Character and Conditions of Service:                                                                          connection with the proposed rate
                                                                                                      SWPA–70, which increases the power
                                                Three-phase, alternating current,                     rate for the Robert D. Willis Hydropower              schedule. On October 9, 2015,
                                              delivered at approximately 60 Hertz, at                 Project (Willis) pursuant to the Willis               Southwestern published notice in the
                                              the nominal voltage, at the point of                    Rate Schedule (RDW–15) which                          Federal Register, (80 FR 61205), of the
                                              delivery, and in such quantities as are                 supersedes the existing rate schedule.                proposed power rate increase for Willis.
                                              specified by contract.                                  DATES: The effective period for the rate              Southwestern provided a 30-day
                                                                                                      schedule specified in Rate Order No.                  comment period as an opportunity for
                                              1. Wholesale Rates, Terms, and
                                                                                                      SWPA–70 is January 1, 2016, through                   customers and other interested members
                                              Conditions for Hydro Power and Energy
                                                                                                      September 30, 2019.                                   of the public to review and comment on
                                                 1.1. These rates shall be applicable                 FOR FURTHER INFORMATION CONTACT: Mr.                  the proposed power rate increase with
                                              regardless of the quantity of Hydro                     Marshall Boyken, Senior Vice President,               written comments due by November 9,
                                              Power and Energy available or delivered                 Chief Operating Office, Southwestern                  2015. Southwestern did not hold the
                                              to SRDEC; provided, however, that if an                 Power Administration, U.S. Department                 combined Public Information and
                                              Uncontrollable Force prevents                           of Energy, Williams Center Tower I, One               Comment Forum (Forum) because
                                              utilization of both of the project’s power              West Third Street, Tulsa, Oklahoma                    Southwestern did not receive any
                                              generating units for an entire billing                  74103, (918) 595–6646,                                requests to hold the Forum. One
                                              period, and if during such billing period               marshall.boyken@swpa.gov.                             comment was received from Gillis,
                                              water releases were being made which                    SUPPLEMENTARY INFORMATION: Rate Order                 Borchardt and Barthel LLP, on behalf of
                                              otherwise would have been used to                       No. SWPA–70, which has been                           the Vinton Public Power Authority and
                                              generate Hydro Power and Energy, then                   approved and placed into effect on an                 the Sam Rayburn Generation and
                                              Southwestern shall, upon request by                     interim basis, increases the power rate               Transmission Cooperative which stated
                                              SRDEC, suspend billing for subsequent                   for Willis pursuant to the following Rate             they had no objection to the proposed
                                              billing periods, until such time as at                  Schedule:                                             rate adjustment.
                                              least one of the project’s generating
                                              units is again available.                                 Rate Schedule RDW–15, Wholesale Rates                  Information regarding this rate
                                                                                                      for Hydro Power and Energy Sold to Sam                proposal, including studies and other
                                                 1.2. The term ‘‘Uncontrollable Force,’’              Rayburn Municipal Power Agency (Contract
                                              as used herein, shall mean any force                    No. DE–PM75–85SW00117)
                                                                                                                                                            supporting material, is available for
                                              which is not within the control of the                                                                        public review and comment in the
                                              party affected, including, but not                        The rate schedule supersedes the                    offices of Southwestern Power
                                              limited to, failure of water supply,                    existing rate schedule shown below:                   Administration, Williams Center Tower
                                              failure of facilities, flood, earthquake,                 Rate Schedule RDW–14, Wholesale Rates               I, One West Third Street, Tulsa,
                                              storm, lightning, fire, epidemic, riot,                 for Hydro Power and Energy Sold to Sam                Oklahoma 74103. Following review of
                                              civil disturbance, labor disturbance,                   Rayburn Municipal Power Agency (Contract              Southwestern’s proposal within the
                                                                                                      No. DE–PM75–85SW00117) (superseded by
                                              sabotage, war, acts of war, terrorist acts,                                                                   Department of Energy, I approved Rate
                                                                                                      RDW–15)
                                              or restraint by court of general                                                                              Order No. SWPA–70, on an interim
                                              jurisdiction, which by exercise of due                     Southwestern Power Administration’s                basis, which ultimately increases the
                                              diligence and foresight such party could                (Southwestern) Administrator has                      existing Willis power rate to $1,282,836
                                              not reasonably have been expected to                    determined, based on the 2015 Willis                  per year for the period January 1, 2016
                                              avoid.                                                  Current Power Repayment Study that
                                                                                                                                                            through September 30, 2019.
                                                 1.3. Hydro Power Rates, Terms, and                   the existing power rate will not satisfy
                                                                                                      cost recovery criteria specified in                     Dated: December 17, 2015.
                                              Conditions
                                                                                                      Department of Energy Order No. RA                     Elizabeth Sherwood-Randall,
                                                 1.3.1. Monthly Charge for the Period
                                                                                                      6120.2 and Section 5 of the Flood                     Deputy Secretary.
                                              of January 1, 2016 through September
                                                                                                      Control Act of 1944. The finalized 2015
                                              30, 2019                                                                                                      DEPARTMENT OF ENERGY
                                                                                                      Willis Power Repayment Studies
                                                 $380,316 per month ($4,563,792 per
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                      indicate that an increase in annual                   DEPUTY SECRETARY OF ENERGY
                                              year) for Sam Rayburn Dam Hydro                         revenue of $101,340, or 8.6 percent,
                                              Power and Energy purchased by SRDEC                     beginning January 1, 2016, will satisfy                 In the matter of: Southwestern Power
                                              from January 1, 2016, through                           cost recovery criteria for Willis. The                Administration, Robert D. Willis Hydropower
                                              September 30, 2019.                                     proposed Willis rate schedule would                   Project Power Rate
                                              [FR Doc. 2015–32366 Filed 12–22–15; 8:45 am]            ultimately increase annual revenues
                                              BILLING CODE 6450–01–P                                  from $1,181,496 to $1,282,836, to


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Document Created: 2018-03-02 09:21:01
Document Modified: 2018-03-02 09:21:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of Rate Order.
DatesThe effective period for the rate schedule specified in Rate Order No. SWPA-69 is January 1, 2016, through September 30, 2019.
ContactMr. Marshall Boyken, Senior Vice President, Chief Operating Officer, Southwestern Power Administration, U.S. Department of Energy, Williams Center Tower I, One West Third Street, Tulsa, Oklahoma 74103, (918) 595-6646, [email protected]
FR Citation80 FR 79881 

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