80_FR_80129 80 FR 79883 - Robert D. Willis Hydropower Project Power Rate

80 FR 79883 - Robert D. Willis Hydropower Project Power Rate

DEPARTMENT OF ENERGY
Southwestern Power Administration

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

Page Range79883-79885
FR Document2015-32365

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-70, which increases the power rate for the Robert D. Willis Hydropower Project (Willis) pursuant to the Willis Rate Schedule (RDW-15) which supersedes 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 79883-79885]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32365]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Robert D. Willis Hydropower 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-70, which increases the power rate for the 
Robert D. Willis Hydropower Project (Willis) pursuant to the Willis 
Rate Schedule (RDW-15) which supersedes the existing rate schedule.

DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-70 is January 1, 2016, through September 30, 2019.

FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice 
President, Chief Operating Office, Southwestern Power Administration, 
U.S. Department of Energy, Williams Center Tower I, One West Third 
Street, Tulsa, Oklahoma 74103, (918) 595-6646, 
marshall.boyken@swpa.gov.

SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-70, which has been 
approved and placed into effect on an interim basis, increases the 
power rate for Willis pursuant to the following Rate Schedule:

    Rate Schedule RDW-15, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Municipal Power Agency (Contract No. DE-PM75-
85SW00117)

    The rate schedule supersedes the existing rate schedule shown 
below:

    Rate Schedule RDW-14, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Municipal Power Agency (Contract No. DE-PM75-
85SW00117) (superseded by RDW-15)

    Southwestern Power Administration's (Southwestern) Administrator 
has determined, based on the 2015 Willis 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 Willis Power 
Repayment Studies indicate that an increase in annual revenue of 
$101,340, or 8.6 percent, beginning January 1, 2016, will satisfy cost 
recovery criteria for Willis. The proposed Willis rate schedule would 
ultimately increase annual revenues from $1,181,496 to $1,282,836, to 
recover increased costs associated with operations and maintenance as 
well as increased costs for investments and replacements in the 
hydroelectric generating facility and the associated increased interest 
expense, with one half (4.3 percent) beginning January 1, 2016, and the 
remaining one half (4.3 percent) beginning on January 1, 2017.
    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 
61205), of the proposed power rate increase for Willis. 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 Vinton Public Power Authority and the Sam 
Rayburn Generation and Transmission Cooperative 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-70, on an interim basis, which ultimately increases 
the existing Willis power rate to $1,282,836 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, Robert D. 
Willis Hydropower Project Power Rate

[[Page 79884]]

Rate Order No. SWPA-70

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 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 Robert Douglas Willis Hydropower Project (Willis) (aka: Dam B 
and later Town Bluff Dam), located on the Neches River in eastern Texas 
downstream from the Sam Rayburn Dam, was originally constructed in 1951 
by the U.S. Army Corps of Engineers (Corps) and provides stream flow 
regulation of releases from the Sam Rayburn Dam. The Lower Neches 
Valley Authority contributed funds toward construction of both projects 
and makes established annual payments for the right to withdraw up to 
2000 cubic feet of water per second from Willis for its own use. Power 
was legislatively authorized at the project, but installation of 
hydroelectric facilities was deferred until justified by economic 
conditions. A determination of feasibility was made in a 1982 Corps 
study. In 1983, the Sam Rayburn Municipal Power Agency (SRMPA) proposed 
to sponsor and finance the development of hydropower at Willis in 
return for the output of the project to be delivered to its member 
municipalities and participating member cooperatives of the Sam Rayburn 
Dam Electric Cooperative.
    The Willis power rate excludes the costs associated with the 
hydropower design and construction performed by the Corps, because all 
funds for these costs were provided by SRMPA. Under the Southwestern/
SRMPA power sales Contract No. DE-PM75-85SW00117, SRMPA will continue 
to pay all annual operating and maintenance costs, as well as expected 
capital replacement costs, through the power rate paid to Southwestern, 
and will receive all power and energy produced at the project for a 
period of 50 years.
    FERC confirmation and approval of the current Willis rate schedule 
was provided in FERC Docket No. EF15-5-000 issued on June 3, 2015, (151 
FERC ]62,156) effective for the period January 1, 2015, through 
September 30, 2018.

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 costs associated with Corps operations and 
maintenance as well as increased costs for investments and replacements 
in the hydroelectric generating facilities and the associated increased 
interest expense. The 2015 Revised Power Repayment Study indicated the 
need for an 8.6 percent revenue increase. These preliminary results, 
which presented the basis for the proposed revenue increase, were 
provided to the customers for their review prior to the formal process.
    The 2015 Revised Power Repayment Study has been finalized and 
indicates that an increase in annual revenues of $101,340 (8.6 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 Willis power rate were announced by a Federal Register 
notice published on October 9, 2015 (80 FR 61205), 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, to the 
customers and interested parties for review and comment during the 
public comment period. In response to concerns expressed by 
Southwestern's customers during their review of the preliminary results 
of the 2015 Power Repayment Studies, Southwestern is increasing revenue 
in two steps over a twelve month period. Because Southwestern's current 
Willis power rate is 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 steps over the period.
    The first step of the rate increase, beginning January 1, 2016, 
would incorporate one half of the required revenue increase ($50,670 or 
4.3 percent). The second step of the rate increase, beginning January 
1, 2017, and ending on September 30, 2019, would incorporate the 
remaining one half of the revenue increase 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.
    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 $1,282,836 which is the lowest possible 
rate needed to satisfy repayment criteria. This rate represents an 
annual increase of 8.6 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 Vinton Public Power Authority and the Sam 
Rayburn Generation and Transmission Cooperative 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 Willis Revised Power Repayment Study indicates that the 
increased power rate of $1,282,836 will repay all costs of the project 
including

[[Page 79885]]

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 
Willis power rate is consistent with applicable law and is the lowest 
possible rate to the customer 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 phased-in annual Willis power rate of 
$1,282,836 for the sale of power and energy from Willis to the Sam 
Rayburn Municipal Power Agency, under Contract No. DE-PM75-85SW00117, 
as amended. 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.

Dated: December 17, 2015

Dr. Elizabeth Sherwood-Randall,
Deputy Secretary

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE RDW-15 \1\
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    \1\ Supersedes Rate Schedule RDW-14.
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WHOLESALE RATES FOR HYDRO POWER AND ENERGY SOLD TO SAM RAYBURN 
MUNICIPAL POWER AGENCY

(CONTRACT NO. DE-PM75-85SW00117)

Effective:

    During the period January 1, 2016, through September 30, 2019, 
in accordance with interim approval from Rate Order No. SWPA-70 
issued by the 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 Municipal Power 
Agency (SRMPA) from the Southwestern Power Administration 
(Southwestern) under the terms and conditions of the Power Sales 
Contract dated June 28, 1985, as amended, for the sale of all Hydro 
Power and Energy generated at the Robert Douglas Willis Hydropower 
Project (Robert D. Willis) (formerly designated as Town Bluff).

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 SRMPA; 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 SRMPA, 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 
December 31, 2016

    $102,681 per month ($1,232,172 per year) for Robert D. Willis 
Hydro Power and Energy purchased by SRMPA from January 1, 2016, 
through December 31, 2016.

1.3.2. Monthly Charge for the Period of January 1, 2017 through 
September 30, 2019

    $106,903 per month ($1,282,836 per year) for Robert D. Willis 
Hydro Power and Energy purchased by SRMPA from January 1, 2017, 
through September 30, 2019.

[FR Doc. 2015-32365 Filed 12-22-15; 8:45 am]
BILLING CODE 6450-01-P



                                                                       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


                                         VerDate Sep<11>2014   18:05 Dec 22, 2015   Jkt 238001   PO 00000   Frm 00067   Fmt 4703   Sfmt 4703   E:\FR\FM\23DEN1.SGM   23DEN1


                                              79884                    Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Notices

                                              Rate Order No. SWPA–70                                  the Southwestern/SRMPA power sales                    interested parties for review and
                                              ORDER CONFIRMING, APPROVING                             Contract No. DE–PM75–85SW00117,                       comment during the public comment
                                              AND PLACING INCREASED POWER                             SRMPA will continue to pay all annual                 period. In response to concerns
                                              RATE SCHEDULE IN EFFECT ON AN                           operating and maintenance costs, as                   expressed by Southwestern’s customers
                                              INTERIM BASIS                                           well as expected capital replacement                  during their review of the preliminary
                                                                                                      costs, through the power rate paid to                 results of the 2015 Power Repayment
                                                 Pursuant to Sections 302(a) and                      Southwestern, and will receive all                    Studies, Southwestern is increasing
                                              301(b) of the Department of Energy                      power and energy produced at the                      revenue in two steps over a twelve
                                              Organization Act, Public Law 95–91, the                 project for a period of 50 years.                     month period. Because Southwestern’s
                                              functions of the Secretary of the Interior                 FERC confirmation and approval of                  current Willis power rate is sufficient to
                                              and the Federal Power Commission                        the current Willis rate schedule was                  recover all average operation and
                                              under Section 5 of the Flood Control                    provided in FERC Docket No. EF15–5–                   maintenance expenses during the next
                                              Act of 1944, 16 U.S.C. 825s, relating to                000 issued on June 3, 2015, (151 FERC                 two years, the ability to meet both
                                              the Southwestern Power Administration                   ¶62,156) effective for the period January             annual and long-term repayment criteria
                                              (Southwestern) were transferred to and                  1, 2015, through September 30, 2018.                  is satisfied by increasing revenues in
                                              vested in the Secretary of Energy. By                                                                         steps over the period.
                                              Delegation Order No. 00–037.00A, the                    DISCUSSION
                                                                                                                                                               The first step of the rate increase,
                                              Secretary of Energy delegated to the                      Southwestern prepared a 2015                        beginning January 1, 2016, would
                                              Administrator of Southwestern the                       Current Power Repayment Study which                   incorporate one half of the required
                                              authority to develop power and                          indicated that the existing power rate                revenue increase ($50,670 or 4.3
                                              transmission rates, delegated to the                    would not satisfy present financial                   percent). The second step of the rate
                                              Deputy Secretary of the Department of                   criteria regarding repayment of                       increase, beginning January 1, 2017, and
                                              Energy the authority to confirm,                        investment within a 50-year period due                ending on September 30, 2019, would
                                              approve, and place in effect such rates                 to increased costs associated with Corps              incorporate the remaining one half of
                                              on an interim basis and delegated to the                operations and maintenance as well as                 the revenue increase requirement
                                              Federal Energy Regulatory Commission                    increased costs for investments and                   ($50,670 or 4.3 percent). Southwestern
                                              (FERC) the authority to confirm and                     replacements in the hydroelectric                     will continue to perform its Power
                                              approve on a final basis or to disapprove               generating facilities and the associated              Repayment Studies annually, and if the
                                              rates developed by the Administrator                    increased interest expense. The 2015                  2016 results should indicate the need
                                              under the delegation. Pursuant to that                  Revised Power Repayment Study                         for additional revenues, another rate
                                              delegated authority, the Deputy                         indicated the need for an 8.6 percent                 filing will be conducted and updated
                                              Secretary issued this interim rate order.               revenue increase. These preliminary                   revenue requirements implemented for
                                                                                                      results, which presented the basis for                Fiscal Year 2017 and thereafter.
                                              BACKGROUND
                                                                                                      the proposed revenue increase, were                      Following the conclusion of the
                                                 The Robert Douglas Willis                            provided to the customers for their                   comment period on November 9, 2015,
                                              Hydropower Project (Willis) (aka: Dam                   review prior to the formal process.                   Southwestern finalized the Power
                                              B and later Town Bluff Dam), located on                   The 2015 Revised Power Repayment
                                                                                                                                                            Repayment Studies and rate schedule
                                              the Neches River in eastern Texas                       Study has been finalized and indicates
                                                                                                                                                            for the proposed annual rate of
                                              downstream from the Sam Rayburn                         that an increase in annual revenues of
                                                                                                                                                            $1,282,836 which is the lowest possible
                                              Dam, was originally constructed in 1951                 $101,340 (8.6 percent) is necessary
                                                                                                                                                            rate needed to satisfy repayment
                                              by the U.S. Army Corps of Engineers                     beginning January 1, 2016, to
                                                                                                                                                            criteria. This rate represents an annual
                                              (Corps) and provides stream flow                        accomplish repayment in the required
                                                                                                                                                            increase of 8.6 percent. The
                                              regulation of releases from the Sam                     number of years. Accordingly,
                                                                                                                                                            Administrator made the decision to
                                              Rayburn Dam. The Lower Neches Valley                    Southwestern has prepared a proposed
                                                                                                                                                            submit the rate proposal for interim
                                              Authority contributed funds toward                      rate schedule based on the additional
                                                                                                                                                            approval and implementation.
                                              construction of both projects and makes                 revenue requirement to ensure
                                              established annual payments for the                     repayment.                                            COMMENTS AND RESPONSES
                                              right to withdraw up to 2000 cubic feet                   Southwestern conducted the rate                       Southwestern received one comment
                                              of water per second from Willis for its                 adjustment proceeding in accordance                   during the public comment period. The
                                              own use. Power was legislatively                        with title 10, part 903, subpart A of the             comment on behalf of the Vinton Public
                                              authorized at the project, but                          Code of Federal Regulations (10 CFR                   Power Authority and the Sam Rayburn
                                              installation of hydroelectric facilities                part 903), ‘‘Procedures for Public                    Generation and Transmission
                                              was deferred until justified by economic                Participation in Power and                            Cooperative expressed no objection to
                                              conditions. A determination of                          Transmission Rate Adjustments and                     the proposed rate increase.
                                              feasibility was made in a 1982 Corps                    Extensions.’’ More specifically,
                                              study. In 1983, the Sam Rayburn                         opportunities for public review and                   AVAILABILITY OF INFORMATION
                                              Municipal Power Agency (SRMPA)                          comment during a 30-day period on the                   Information regarding this power rate
                                              proposed to sponsor and finance the                     proposed Willis power rate were                       increase, including studies, comments
                                              development of hydropower at Willis in                  announced by a Federal Register notice                and other supporting material, is
                                              return for the output of the project to be              published on October 9, 2015 (80 FR                   available for public review in the offices
                                              delivered to its member municipalities                  61205), with written comments due                     of Southwestern Power Administration,
                                              and participating member cooperatives                   November 9, 2015. The combined                        One West Third Street, Tulsa, OK
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                                              of the Sam Rayburn Dam Electric                         Public Information and Comment                        74103.
                                              Cooperative.                                            Forum scheduled for October 28, 2015,
                                                 The Willis power rate excludes the                   in Tulsa, Oklahoma was not held                       ADMINISTRATION’S CERTIFICATION
                                              costs associated with the hydropower                    because Southwestern did not receive                    The 2015 Willis Revised Power
                                              design and construction performed by                    any requests to hold the forum.                       Repayment Study indicates that the
                                              the Corps, because all funds for these                  Southwestern provided the Federal                     increased power rate of $1,282,836 will
                                              costs were provided by SRMPA. Under                     Register notice, to the customers and                 repay all costs of the project including


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                                                                        Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Notices                                          79885

                                              amortization of the power investment                     to final approval by the Federal Energy               ENVIRONMENTAL PROTECTION
                                              consistent with the provisions of                        Regulatory Commission.                                AGENCY
                                              Department of Energy Order No. RA                        Applicable:                                           [EPA–HQ–OECA–2012–0529; FRL–9939–
                                              6120.2. In accordance with Delegation                                                                          73–OEI]
                                              Order No. 00–037.00A (October 25,                           To the power and energy purchased by
                                              2013), and Section 5 of the Flood                        Sam Rayburn Municipal Power Agency
                                                                                                       (SRMPA) from the Southwestern Power                   Information Collection Request
                                              Control Act of 1944, the Administrator                                                                         Submitted to OMB for Review and
                                                                                                       Administration (Southwestern) under the
                                              has determined that the proposed Willis                                                                        Approval; Comment Request; NESHAP
                                                                                                       terms and conditions of the Power Sales
                                              power rate is consistent with applicable                                                                       for Mercury (Renewal)
                                                                                                       Contract dated June 28, 1985, as amended,
                                              law and is the lowest possible rate to the
                                                                                                       for the sale of all Hydro Power and Energy            AGENCY: Environmental Protection
                                              customer consistent with sound
                                                                                                       generated at the Robert Douglas Willis                Agency (EPA).
                                              business principles.
                                                                                                       Hydropower Project (Robert D. Willis)
                                                                                                                                                             ACTION: Notice.
                                              ENVIRONMENT                                              (formerly designated as Town Bluff).

                                                The environmental impact of the                        Character and Conditions of Service:                  SUMMARY:    The Environmental Protection
                                              power rate increase proposal was                                                                               Agency has submitted an information
                                                                                                          Three-phase, alternating current, delivered
                                              evaluated in consideration of the                                                                              collection request (ICR), ‘‘NESHAP for
                                                                                                       at approximately 60 Hertz, at the nominal
                                              Department of Energy’s guidelines for                                                                          Mercury (40 CFR part 61, subpart E)
                                                                                                       voltage, at the point of delivery, and in such
                                              implementing the procedural provisions                                                                         (Renewal)’’ (EPA ICR No. 0113.12, OMB
                                                                                                       quantities as are specified by contract.
                                              of the National Environmental Policy                                                                           Control No. 2060–0097), to the Office of
                                              Act and was determined to fall within
                                                                                                       1. Wholesale Rates, Terms, and Conditions             Management and Budget (OMB) for
                                                                                                       for Hydro Power and Energy                            review and approval in accordance with
                                              the class of actions that are categorically
                                              excluded from the requirements of                          1.1. These rates shall be applicable                the Paperwork Reduction Act (44 U.S.C.
                                              preparing either an Environmental                        regardless of the quantity of Hydro Power             3501 et seq.). This is a proposed
                                              Impact Statement or an Environmental                     and Energy available or delivered to SRMPA;           extension of the ICR, which is currently
                                              Assessment (10 CFR part 1021, App. B                     provided, however, that if an Uncontrollable          approved through December 31, 2015.
                                              to subpart D, § B1.1 ‘‘Changing rates &                  Force prevents utilization of both of the             Public comments were previously
                                              prices’’).                                               project’s power generating units for an entire        requested via the Federal Register (80
                                                                                                       billing period, and if during such billing            FR 32116) on June 5, 2015 during a 60-
                                              ORDER                                                    period water releases were being made which           day comment period. This notice allows
                                                                                                       otherwise would have been used to generate            for an additional 30 days for public
                                                 In view of the foregoing and pursuant
                                                                                                       Hydro Power and Energy, then Southwestern             comments. A fuller description of the
                                              to the authority delegated to me by the
                                                                                                       shall, upon request by SRMPA, suspend                 ICR is given below, including its
                                              Secretary of Energy, I hereby confirm,                   billing for subsequent billing periods, until         estimated burden and cost to the public.
                                              approve and place in effect on an                        such time as at least one of the project’s            An Agency may not conduct or sponsor,
                                              interim basis, effective January 1, 2016,                generating units is again available.                  and a person is not required to respond
                                              through September 30, 2019, the                            1.2. The term ‘‘Uncontrollable Force,’’ as          to, a collection of information unless it
                                              phased-in annual Willis power rate of                    used herein, shall mean any force which is            displays a currently valid OMB control
                                              $1,282,836 for the sale of power and                     not within the control of the party affected,         number.
                                              energy from Willis to the Sam Rayburn                    including, but not limited to, failure of water
                                              Municipal Power Agency, under                                                                                  DATES: Additional comments may be
                                                                                                       supply, failure of facilities, flood, earthquake,     submitted on or before January 22, 2016.
                                              Contract No. DE–PM75–85SW00117, as                       storm, lightning, fire, epidemic, riot, civil
                                              amended. This rate shall remain in                                                                             ADDRESSES: Submit your comments,
                                                                                                       disturbance, labor disturbance, sabotage, war,
                                              effect on an interim basis through                       acts of war, terrorist acts, or restraint by court
                                                                                                                                                             referencing Docket ID Number EPA–
                                              September 30, 2019, or until the FERC                    of general jurisdiction, which by exercise of         HQ–OECA–2012–0529, to: (1) EPA
                                              confirms and approves the rate on a                      due diligence and foresight such party could          online using www.regulations.gov (our
                                              final basis.                                             not reasonably have been expected to avoid.           preferred method), or by email to
                                              Dated: December 17, 2015                                                                                       docket.oeca@epa.gov, or by mail to: EPA
                                                                                                       1.3. Hydro Power Rates, Terms, and                    Docket Center, Environmental
                                              Dr. Elizabeth Sherwood-Randall,
                                                                                                       Conditions                                            Protection Agency, Mail Code 28221T,
                                              Deputy Secretary
                                                                                                       1.3.1. Monthly Charge for the Period of               1200 Pennsylvania Ave. NW.,
                                              UNITED STATES DEPARTMENT OF                              January 1, 2016 through December 31, 2016             Washington, DC 20460; and (2) OMB via
                                              ENERGY
                                                                                                         $102,681 per month ($1,232,172 per year)            email to oira_submission@omb.eop.gov.
                                              SOUTHWESTERN POWER                                       for Robert D. Willis Hydro Power and Energy           Address comments to OMB Desk Officer
                                              ADMINISTRATION                                           purchased by SRMPA from January 1, 2016,              for EPA.
                                              RATE SCHEDULE RDW–15 1                                   through December 31, 2016.                              EPA’s policy is that all comments
                                                                                                                                                             received will be included in the public
                                              WHOLESALE RATES FOR HYDRO POWER                          1.3.2. Monthly Charge for the Period of
                                                                                                       January 1, 2017 through September 30, 2019
                                                                                                                                                             docket without change including any
                                              AND ENERGY SOLD TO SAM RAYBURN
                                                                                                                                                             personal information provided, unless
                                              MUNICIPAL POWER AGENCY                                     $106,903 per month ($1,282,836 per year)            the comment includes profanity, threats,
                                              (CONTRACT NO. DE–PM75–85SW00117)                         for Robert D. Willis Hydro Power and Energy           information claimed to be Confidential
                                                                                                       purchased by SRMPA from January 1, 2017,              Business Information (CBI), or other
                                              Effective:                                               through September 30, 2019.                           information whose disclosure is
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                                                During the period January 1, 2016, through
                                              September 30, 2019, in accordance with
                                                                                                       [FR Doc. 2015–32365 Filed 12–22–15; 8:45 am]          restricted by statute.
                                              interim approval from Rate Order No.                     BILLING CODE 6450–01–P                                FOR FURTHER INFORMATION CONTACT:
                                              SWPA–70 issued by the Deputy Secretary of                                                                      Patrick Yellin, Monitoring, Assistance,
                                              Energy on December 17, 2015 and pursuant                                                                       and Media Programs Division, Office of
                                                                                                                                                             Compliance, Mail Code 2227A,
                                                1 Supersedes   Rate Schedule RDW–14.                                                                         Environmental Protection Agency, 1200


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Document Created: 2018-03-02 09:20:28
Document Modified: 2018-03-02 09:20:28
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-70 is January 1, 2016, through September 30, 2019.
ContactMr. Marshall Boyken, Senior Vice President, Chief Operating Office, 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 79883 

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