[Federal Register Volume 60, Number 115 (Thursday, June 15, 1995)] [Notices] [Pages 31464-31465] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-14709] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Southwestern Power Administration Integrated System
Agency
Southwestern Power Administration, DOE.
Action
Notice of proposed extension of integrated system power rates and opportunities for public review and comment.
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Summary
The Current Integrated System Rates were approved by the Federal Energy Regulatory Commission (FERC) on September 18, 1991, Docket
No. EF91-4011-000 (56 FERC para.61,398). These rates were effective October 1, 1990, through September 30, 1994. Effective October 1, 1994, these rates were extended on an interim basis by the Deputy Secretary of Energy, for one year ending September 30, 1995 (59 FR 47860, Sept. 19, 1994). The Administrator, Southwestern, has prepared Current and Revised 1995 Power Repayment Studies for the Integrated System which show the need for a minor rate adjustment of $1,008,285 (1.07 percent increase) in annual revenues. In accordance with Southwestern's rate adjustment threshold, dated June 23, 1987, the Administrator, Southwestern, may determine, on a case by case basis, that for a revenue decrease or increase in the magnitude of plus-or-minus two percent, deferral of a formal rate filing is in the best interest of the Government. Also, the Deputy Secretary of Energy has the authority to extend rates, previously confirmed and approved by FERC, on an interim basis, pursuant to 10 CFR 903.22(h) and 903.23(a)(3). In accordance with DOE rate extension authority and Southwestern's rate adjustment threshold, the Administrator is proposing that the rate adjustment be deferred and that the current rates be extended for a one-year period effective through September 30, 1996.
Dates
Written comments are due on or before June 30, 1995.
Addresses
Written comments should be submitted to the Administrator, Southwestern Power Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101.
For Further Information Contact
George C. Grisaffe, Assistant Administrator, Office of Administration and Rates, Southwestern Power Administration, Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 74101, (918) 581-7419.
Supplementary Information
The U.S. Department of Energy was created by an Act of the U.S. Congress, Department of Energy Organization Act, P.L. 95-91, dated August 4, 1977, and Southwestern's power marketing activities were transferred from the Department of the Interior to the Department of Energy, effective October 1, 1977. Southwestern markets power from 24 multiple-purpose reservoir projects with power facilities constructed and operated by the U.S. Army Corps of Engineers. These projects are located in the States of Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area includes these states plus Kansas and Louisiana. Of the total, 22 projects comprise an Integrated System and are interconnected through Southwestern's transmission system and exchange agreements with other utilities. The other two projects (Sam Rayburn and Robert Douglas Willis) are not interconnected with Southwestern's Integrated System. Instead, their power is marketed under separate contracts through which two customers purchase the entire power output of each of the projects at the dams. Following Department of Energy Order Number RA 6120.2, the Administrator, Southwestern, prepared a 1995 Current Power Repayment Study (PRS) using existing Integrated System rate schedules. The PRS shows the actual status of repayment through FY 1994 at $319,846,125 on a total investment of $982,356,193. The FY 1995 Revised PRS indicates the need for an increase in annual revenues of $1,008,285, or 1.07 percent, over and above the present annual revenues. As a matter of practice, Southwestern would defer an indicated rate adjustment that falls within Southwestern's plus-or-minus two percent rate adjustment threshold. The threshold, which was established in 1987, was developed to add efficiency to the process of maintaining adequate rates and is consistent with cost recovery criteria within DOE Order Number RA 6120.2 regarding rate adjustment plans. The Integrated System's FY 1994 (last year's) PRS concluded that the annual revenues needed to be increased by 0.8 percent. At that time, it was determined prudent to defer the increase in accordance with the established threshold and extend the rates on an interim basis for one year. As previously cited, the FY 1995 (this year's) PRS indicates that revenues would need to be increased by 1.07 percent, or $1,008,285 per year. It once again seems prudent to defer a rate adjustment in accordance with Southwestern's rate adjustment threshold and reevaluate the ability of the existing rate to provide sufficient revenues to satisfy costs projected in the FY 1996 (next year's) PRS. On September 18, 1991, the current rate schedules for the Integrated System were confirmed and approved by the FERC on a final basis for a period that ended on September 30, 1994. In accordance with 10 CFR 903.22(h) and 903.23(a)(3), the Deputy Secretary may extend existing rates on an interim basis beyond the period specified by the FERC. On September 19, 1994, the Deputy Secretary approved an extension of the Integrated System power rates on an interim basis for the period October 1, 1994, through September 30, 1995. As a result of the benefits obtained by a rate adjustment deferral (reduced Federal expense and rate stability) and the Deputy Secretary's authority to extend a previously approved rate, Southwestern's Administrator is proposing to again extend the current Integrated System rate schedules for the one-year period beginning October 1, 1995, and extending through September 30, 1996. Opportunity is presented for customers and interested parties to receive copies of the study data for the Integrated System. If you desire a copy of the Repayment Study Data Package for the Integrated System, please submit your request to: Mr. George Grisaffe, Assistant Administrator, Office of Administration and Rates, P.O. Box 1619, Tulsa, OK 74101, (918) 581-7419. Following review of the written comments, the Administrator will submit the rate extension proposal for the Integrated System to the Deputy Secretary of Energy for confirmation and approval.
Issued in Tulsa, Oklahoma, this 5th day of June 1995. Forrest E. Reeves, Acting Administrator. [FR Doc. 95-14709 Filed 6-14-95; 8:45 am] BILLING CODE 6450-01-P