Proposed Robert D. Willis Power Rate Change

The U.S. Department of Energy was created by an Act of the U.S. Congress, through the Department of Energy Organization Act, P.L. 95-91, dated August 4, 1977, and Southwestern Power Administration'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 Sam Rayburn Dam project, located in eastern Texas, is not interconnected with Southwestern's Integrated System hydraulically, electrically, or financially. Instead, the power produced by the Sam Rayburn Dam project is marketed by Southwestern as an isolated project under a contract through which the customer purchases the entire power output of the project at the dam. The

Willis project, located on the Neches River downstream from the Sam Rayburn Dam, consists of two 4,000 kilowatt hydroelectric generating units. It, like the Sam Rayburn Dam project, is marketed as an isolated project under a contract through which the customer, Sam Rayburn Municipal Power Agency (SRMPA), receives the entire output of the project. The SRMPA contract is for a period of 50 years as a result of SRMPA's funding the construction of the hydroelectric facilities at the project. A separate power repayment study is prepared for each project which has a special rate based on its isolated project determination. Following Department of Energy Order Number RA 6120.2, the Administrator, Southwestern, prepared a current power repayment study for the Robert D. Willis project using the existing annual rate of $302,928. This Power Repayment Study, like the previous year's, includes estimates for both Southwestern's and the Corps' portions of the unfunded Civil Service Retirement Service and post retirement life/ health costs. The study indicated that maintaining the current rate will create a revenue deficit for the project. This is primarily a result of the Corps of Engineers' increase of Large Maintenance items included in the estimated Operations and Maintenance cost for the Willis Project. The Revised Power Repayment Study for the isolated Willis project shows that an increase of $35,004 (a 11.5 percent increase) annually will satisfy repayment criteria. This increase would change annual revenues produced by the Willis Project from $302,928 to $337,932 and satisfy the present financial criteria for repayment of the project. Opportunity is presented for customers and interested parties to receive copies of the studies and proposed rate schedule for the Willis project. If you desire a copy of the Repayment Study Data Package for the Willis project, submit your request to the information contact listed above. A Public Information Forum is scheduled to be held July 20, 1999. The Public Information Forum is to explain to customers and interested parties the proposed rates and supporting studies. The Forum will be conducted by a chairman who will be responsible for orderly procedure. Questions concerning the rates, studies and information presented at the Forum may be submitted from interested persons and will be answered, to the extent possible, at the Forum. Questions not answered at the Forum will be answered in writing, except the questions involving voluminous data contained in Southwestern's records may best be answered by consultation and review of pertinent records at Southwestern's offices. Persons interested in attending the Public Information Forum should indicate in writing by 4:00 p.m., Central Daylight Time, Thursday, July 15, 1999, their intent to appear at such Forum. Accordingly, if no one so indicates their intent to attend, no such Forum will be held. A transcript of the Forum will be made. Copies of the transcripts may be obtained, for a fee, directly from the transcribing service. Copies of all documents introduced will be available from Southwestern upon request, also for a fee. Written comments on the proposed rates for the project are due on or before August 11, 1999. Written comments should be submitted to the Assistant Administrator as indicated above. Following review of the oral and written comments, the Administrator will submit the rate proposals and the Power Repayment Studies for the Willis project, in support of the proposed rates, to the Secretary of Energy for confirmation and approval on an interim basis and subsequently to the Federal Energy Regulatory Commission (FERC) for confirmation and approval on a final basis. The FERC will allow the public an opportunity to provide written comments on the proposed rate increases before making a final decision.

Issued in Tulsa, Oklahoma, this 28th day of June, 1999. Michael A. Deihl, Administrator. [FR Doc. 99-17656 Filed 7-9-99; 8:45 am] BILLING CODE 6450-01-P