Sam Rayburn Dam Project Power Rate

Background

Southwestern Power Administration (Southwestern) currently has marketing responsibility for 2.2 million kilowatts of power from 24 multiple-purpose reservoir projects, with power facilities constructed and operated by the U.S. Army Corps of Engineers, generally in all or portions of the states of Arkansas, Kansas, Louisiana, Missouri, Oklahoma and Texas. The Integrated System, comprised of 22 of the projects, is interconnected through a transmission system presently consisting of 138- and 161-kV high-voltage transmission lines, 69-kV transmission lines, and numerous bulk power substations and switching stations. In addition, contractual transmission arrangements provide for integration of other projects into the system. The remaining two projects, Sam Rayburn Dam and Robert Douglas Willis, are isolated hydraulically and electrically from the Southwestern transmission system, and their power is marketed under separate contracts through which the customer purchases the entire power output of the project at the dam. A separate Power Repayment Study (PRS) is prepared for each isolated project. The existing rate schedule for the Sam Rayburn Dam Project was confirmed and approved on a final basis by the Federal Energy Regulatory Commission (FERC) on December 7, 1994 for the period October 1, 1994 through September 30, 1998. The FY 1998 Sam Rayburn Dam Project PRS indicates the need for a rate adjustment of $3,732 annually, or 0.2 percent. Pursuant to implementing authority in 10 CFR 903(h) and 903.23(a)(3), the Deputy Secretary of Energy may extend a FERC-approved rate on an interim basis. The Administrator, Southwestern, published notice in the Federal Register on June 10, 1998, 63 FR 31767, announcing a 30-day period for public review and comment concerning the proposed interim rate extension. Written comments were accepted through July 10, 1998. In a letter dated June 11, 1998, a Sam Rayburn Dam Electric Cooperative (SRDEC) official stated that SRDEC has no objection to the proposed rate extension. No other comments were received.

Discussion

The existing Sam Rayburn Dam Project rate is based on the FY 1994 PRS. PRSs have been completed on the Sam Rayburn Dam Project each year since approval of the existing rates. Rate changes identified by the PRSs since that period have indicated the need for minimal rate increases or decreases. Since the revenue changes reflected by the PRSs were within the plus-or-minus two percent Rate Adjustment Threshold established by Southwestern's Administrator on June 23, 1987, these rate adjustments were deferred in the best interest of the government and provided for the next year's PRS to determine the appropriate level of

revenues needed for the next rate period. The FY 1998 PRS indicates the need for an annual revenue decrease of 0.2 percent. As has been the case since the existing rates were approved, the FY 1998 rate adjustment needed falls within Southwestern's plus-or-minus two percent Rate Adjustment Threshold and would normally be deferred. However, the existing rates expire on September 30, 1998. Consequently, Southwestern proposes to extend the existing rates for a one-year period ending September 30, 1999, on an interim basis under the implementation authorities noted in 10 CFR 903.22(h) and 903.23(a)(3). Southwestern continues to make significant progress toward repayment of the Federal investment in the Sam Rayburn Dam Project. Through FY 1997, status of repayment for the Sam Rayburn Dam Project was $12,156,954, which represents approximately 47 percent of the $25,676,015 Federal investment. The status has increased almost 31.7 percent since the existing rates were placed in effect. Information regarding this rate extension, including studies and other supporting material, is available for public review and comment in the offices of Southwestern Power Administration, Suite 1400, One West Third Street, Tulsa, Oklahoma 74103.

Order

In view of the foregoing and pursuant to the authority delegated to me by the Secretary of Energy, I hereby extend on an interim basis, for the period of one year, effective October 1, 1998, the current FERC- approved Sam Rayburn Dam Project Rate for the sale of power and energy.

Dated: August 14, 1998. Elizabeth A. Moler, Deputy Secretary. [FR Doc. 98-22912 Filed 8-25-98; 8:45 am] BILLING CODE 6450-01-P