Washoe Project-Rate Order No. WAPA-119, 51035-51040 [05-17106]

Download as PDF Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Notices projects are repaid via revenues received under the Integrated System rates, as are Southwestern’s transmission facilities that consist of 1,380 miles of high-voltage transmission lines, 24 substations, and 46 microwave and VHF radio sites. Costs associated with the Robert D. Willis and Sam Rayburn Dams, two projects that are isolated hydraulically, electrically, and financially from the Integrated System are repaid by separate rate schedules. The Sam Rayburn Dam project is addressed in this notice. Following Department of Energy guidelines, the Administrator, Southwestern, prepared a Current Power Repayment study using the existing Sam Rayburn Dam rate. The Study indicates that Southwestern’s legal requirement to repay the investment in the power generating facility for power and energy marketed by Southwestern will not be met without an increase in revenues. The need for increased revenues is due to increases in expected generation investment and operation and maintenance power-related expenses. The Revised Power Repayment Study shows that an increase in annual revenue of $302,364 (12 percent increase), beginning January 1, 2006, is needed to satisfy repayment criteria. Opportunity is presented for Southwestern customers and other interested parties to receive copies of the Sam Rayburn Dam Power Repayment Studies and the proposed rate schedule. Persons desiring a copy of the Power Repayment Data Package with the proposed Rate Schedule should submit a request to the Director, Rates and Repayment, Office of Corporate Operations, Southwestern Power Administration, One West Third Street, Tulsa, OK 74103, (918) 595–6673 or via email to swparates@swpa.gov. A Public Information Forum is scheduled on September 13, 2005, to explain to customers and interested parties the proposed rate and supporting studies. The proceeding will be transcribed, if held. A chairman, who will be responsible for orderly procedure, will conduct the Forum. Questions concerning the rate, studies, and information presented at the Forum will be answered, to the extent possible, at the Forum. Questions not answered at the Forum will be answered in writing. However, 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 so VerDate Aug<18>2005 15:17 Aug 26, 2005 Jkt 205001 indicate in writing by letter, email or facsimile transmission (918–595–6656) by September 6, 2005, their intent to appear at such Forum. Should no one indicate an intent to attend by the above-cited deadline, no such Forum will be held. A Public Comment Forum is scheduled for October 13, 2005, at which interested persons may submit written comments or make oral presentations of their views and comments related to the rate proposal. The proceeding will be transcribed, if held. A chairman, who will be responsible for orderly procedure, will conduct the Forum. Southwestern’s representatives will be present, and they and the chairman may ask questions of the speakers. Persons interested in attending the Public Comment Forum should so indicate in writing by letter or facsimile transmission (918–595–6656) by October 3, 2005, their intent to appear at such Forum. Should no one so indicate an intent to attend by the above-cited deadline, no such Forum will be held. Persons interested in speaking at the Forum should submit a request in writing by October 3, 2005, to the Administrator, Southwestern, indicated their intent to appear at such Forum, so that a list of speakers can be developed. The chairman may allow others to speak if time permits. A transcript of each Forum will be made. Copies of the transcripts may be obtained directly from the transcribing service for a fee. Copies of all documents introduced will also be available from the transcribing service for a fee. Written comments on the proposed Sam Rayburn Dam Rate are due on or before November 28, 2005. Five copies of the written comments, together with a diskette in MS Word or Corel Word Perfect, should be submitted to Forrest E. Reeves, Assistant Administrator, Southwestern Power Administration, U.S. Department of Energy, One West Third Street, Tulsa, Oklahoma 74103. Following review of the oral and written comments and the information gathered during the course of the proceedings, the Administrator will submit the final Sam Rayburn Dam Proposal, and Power Repayment Studies in support of the proposed rate to the Deputy 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 increase before making a final decision. PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 51035 Dated: August 15, 2005. Michael A. Deihl, Administrator. [FR Doc. 05–17105 Filed 8–26–05; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF ENERGY Western Area Power Administration Washoe Project-Rate Order No. WAPA–119 Western Area Power Administration, DOE. ACTION: Notice of order concerning a non-firm power formula rate. AGENCY: SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA–119 and Rate Schedule SNF–6, placing a non-firm power formula rate from the Stampede Powerplant of the Washoe Project (Stampede) of the Western Area Power Administration (Western) into effect on an interim basis. The provisional formula rate will be in effect until the Federal Energy Regulatory Commission (Commission) confirms, approves, and places it into effect on a final basis or until replaced by other rates. The provisional rate will provide sufficient revenue to pay all annual costs, including interest expense, and repay power investment and irrigation aid, within the allowable periods. DATES: Rate Schedule SNF–6 will be placed into effect on an interim basis on the first day of the first full billing period beginning on or after October 1, 2005, and will be in effect until the Commission confirms, approves, and places the rate schedule in effect on a final basis through September 30, 2010, or until the rate schedule is superseded. FOR FURTHER INFORMATION CONTACT: Mr. James D. Keselburg, Regional Manager, Sierra Nevada Customer Service Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630–4710, (916) 353–4418, or Mr. Sean Sanderson, Rates Manager, Sierra Nevada Customer Service Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630–4710, (916) 353–4466. SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved existing Rate Schedule SNF–5 for Stampede non-firm energy on August 22, 2000 (Rate Order No. WAPA–93, September 1, 2000). The Commission confirmed and approved the rate schedule on October 19, 2000, in FERC Docket No. EF00–5161–000. The existing rate schedule is effective from E:\FR\FM\29AUN1.SGM 29AUN1 51036 Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Notices October 1, 2000, through September 30, 2005. The existing non-firm power Rate Schedule SNF–5 consists of floor and ceiling rates and is designed to recover an annual revenue requirement. The floor rate for non-firm energy from Stampede is 17.89 mills per kilowatthour (mills/kWh) and on average for the 5-year rate period provides sufficient revenue to repay nearly 100 percent of annual expenses, excluding interest expense. The current ceiling rate was set by a power repayment study and provides sufficient revenues to repay all annual costs, including interest expense, and the investment within the allowable period. The Central Valley Project (CVP) 2004 Power Marketing Plan (2004 Power Marketing Plan) states that the output from the Washoe Project remaining after meeting project use loads will be marketed to the CVP preference customers. Beginning October 1, 2005, the costs remaining after meeting project use requirements are included in the CVP Power Revenue Requirement (PRR) on an annual basis. In addition, any energy remaining after meeting project use requirements will be marketed under the 2004 Power Marketing Plan. This situation makes it unnecessary to establish a new proposed ceiling rate for Stampede. Western’s Contract No. 94– SAO–00010 with the Sierra Pacific Resources (Sierra) sets the floor rate. The existing non-firm Rate Schedule SNF–5 is being superseded by SNF–6. SNF–6 removes the ceiling rate and provides a formula for determining Stampede’s annual PRR transferred to the CVP PRR. By Delegation Order No. 00–037.00, effective December 6, 2001, the Secretary of Energy delegated: (1) The authority to develop power and transmission rates to Western’s Administrator, (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy, and (3) the authority to confirm, approve, and place into effect on a final basis to remand or to disapprove such rates to the Commission. Existing Department of Energy (DOE) procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985. Under Delegation Order Nos. 00– 037.00 and 00–001.00A, 10 CFR part 903, and 18 CFR part 300, I hereby confirm, approve, and place Rate Order No. WAPA–119, the non-firm energy formula rate for Stampede, into effect on an interim basis. The new Rate Schedule SNF–6 will be promptly submitted to the Commission for VerDate Aug<18>2005 15:17 Aug 26, 2005 Jkt 205001 confirmation and approval on a final basis. Dated: August 16, 2005. Clay Sell, Deputy Secretary. Department of Energy, Deputy Secretary [Rate Order No. WAPA–119] In the matter of: Western Area Power Administration Rate Adjustment for the Washoe Project, Stampede Division, NonFirm Power Formula Rate; Order Confirming, Approving, and Placing the Washoe Project, Stampede Division, Non-firm Power Formula Rate Into Effect on an Interim Basis This rate was established in accordance with section 302 of the DOE Organization Act, (42 U.S.C. 7152). This Act transferred to, and vested in, the Secretary of Energy the power marketing functions of the Secretary of the Department of the Interior and Reclamation under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and other Acts that specifically apply to the project involved. By Delegation Order No. 00–037.00, effective December 6, 2001, the Secretary of Energy delegated: (1) The authority to develop power and transmission rates to Western’s Administrator, (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy, and (3) the authority to confirm, approve, and place into effect on a final basis, to remand or to disapprove such rates to the Commission. Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985. Acronyms and Definitions As used in this Rate Order, the following acronyms and definitions apply: 2004 Power Marketing Plan: The 2004 CVP Power Marketing Plan (64 FR 34417) effective January 1, 2005. Administrator: The Administrator of the Western Area Power Administration. Ancillary Services: Those services necessary to support the transfer of electricity while maintaining reliable operation of the transmission provider’s transmission system in accordance with standard utility practice. Base Resource: The Central Valley and Washoe Project power output and existing power purchase contracts extending beyond 2004, as determined PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 by Western to be available for marketing, after meeting the requirements of Project Use and First Preference Customers, and any adjustments for maintenance, reserves, transformation losses, and certain ancillary services. Capacity: The electric capability of a generator, transformer, transmission circuit, or other equipment expressed in kilowatts. Commission: The Federal Energy Regulatory Commission. Customer: An entity with a contract that receives service from the Western’s Sierra Nevada Customer Service Region (SNR). CVP: The Central Valley Project is a multipurpose Federal water development project extending from the Cascade Range in northern California to the plains along the Kern River south of Bakersfield, California. DOE: United States Department of Energy. DOE Order RA 6120.2: A DOE order outlining power marketing administration financial reporting and ratemaking procedures. FERC: The Commission (to be used when referencing Commission Orders). First Preference: A Customer or entity qualified to use Preference power within a county of origin (Trinity, Calaveras, and Tuolumne) as specified under the Trinity River Division Act of August 12, 1955 (69 Stat. 719) and the Flood Control Act of 1962 (76 Stat. 1173, 1191–1192). Floor Rate: Per the contract with Sierra, is equal to 85 percent of the then effective, non-time differentiated rate provided in Sierra’s California Quarterly Short-Term Purchase Price Schedule for as-available purchases from qualifying facilities with capacities of 100 kilowatts (kW) or less. FRN: Federal Register notice. FY: Fiscal Year; October 1 to September 30. kV: Kilovolt—The electrical unit of measure of electric potential that equals 1,000 volts. kW: Kilowatt—The electrical unit of capacity that equals 1,000 watts. kWh: Kilowatthour—The electrical unit of energy that equals 1,000 watts in 1 hour. Load: The amount of electric power or energy delivered or required at any specified point(s) on a transmission or distribution system. Mill: A monetary denomination of the United States that equals one-tenth of a cent or one-thousandth of a dollar. Mills/kWh: Mills per kilowatthour. The unit of charge for energy. MW: Megawatt—The electrical unit of capacity that equals 1 million watts or 1,000 kilowatts. E:\FR\FM\29AUN1.SGM 29AUN1 Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Notices NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et seq.). Net Revenue: Revenue remaining after paying all annual expenses. Non-firm: A type of product and/or service not always available at the time requested by the customer. O&M: Operation and Maintenance. Power: Capacity and Energy. Preference: The provisions of Reclamation Law which require Western to first make Federal power available to certain entities. For example, section 9(c) of the Reclamation Project Act of 1939 states that preference in the sale of Federal power shall be given to municipalities and other public corporations or agencies and also to cooperatives and other nonprofit organizations financed in whole or in part by loans made under the Rural Electrification Act of 1936 (43 U.S.C. 485h(c)). Project Use: Power used to operate Washoe Project facilities under Reclamation Law. The Lahontan National Fish Hatchery and the Marble Bluff Fish Facility are designated project use loads of the Washoe Project. Provisional Rate: A rate which has been confirmed, approved, and placed into effect on an interim basis by the Deputy Secretary. PRR: Power revenue requirement. The annual revenue that must be collected to recover annual expenses such as O&M, purchase power, transmission service expenses, interest, deferred expenses, and repay Federal investments and other assigned costs. PRS: Power repayment study. Rate Brochure: A document dated May 2005 explaining the rationale and background for the rate proposal contained in this Rate Order. Reclamation: United States Department of the Interior, Bureau of Reclamation. Reclamation Law: A series of Federal laws. Viewed as a whole, these laws create the originating framework under which Western markets power. Revenue Requirement: The revenue required to recover annual expenses such as O&M, purchase power, transmission service expenses, interest, deferred expenses, and repay Federal investments and other assigned costs. SEEA: The Stampede Energy Exchange Account. Sierra: Sierra Pacific Power Company also known as Nevada Power and Sierra Pacific Resources. SNR: The Sierra Nevada Customer Service Region of Western. Stampede: Power system facilities of Washoe Project, Stampede Division. Stampede Annual PRR: The total power revenue requirement for VerDate Aug<18>2005 15:17 Aug 26, 2005 Jkt 205001 Stampede required to repay all reimbursable annual costs, including interest and the investment within the allowable period. Stampede Revenue: Revenue generated from the floor rate and project generation. Washoe Project: A Reclamation project located in the Lahontan Basin in west-central Nevada and east-central California. Western: United States Department of Energy, Western Area Power Administration. Effective Date The new interim rates will take effect on the first day of the first full billing period beginning on or after October 1, 2005, and will remain in effect until September 30, 2010, pending approval by the Commission on a final basis. Public Notice and Comment Western followed the Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in developing these rates. The steps Western took to involve interested parties in the rate process were: 1. A Federal Register notice published on May 6, 2005, (70 FR 24019), announced the proposed formula rate for non-firm energy from Stampede. This notice began the public consultation and comment period. 2. On May 9, 2005, Western e-mailed the Federal Register notice (70 FR 24019) to the SNR Preference Customers and interested parties explaining the fact that this was a minor rate adjustment. Therefore, there was no public information or comment forum for this rate process. Western also reiterated its availability to meet with interested parties to discuss the studies that support the formula rate. 3. On May 9, 2005, Western also mailed letters to the SNR Preference Customers and interested parties transmitting the Web site address to obtain a copy of the FRN and providing instructions on how to receive a copy of the Rate Brochure. 4. Western communicated clarifying information on the proposed rate with the following Customers and/or interested parties. This information is included in the record. Bay Area Rapid Transit District, California. Energy Source, Nevada. Northern California Power Agency, California. Sacramento Municipal Utility District, California. Sierra Pacific Power Company, aka Nevada Power, Nevada. PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 51037 5. Western received no comment letters during the consultation and comment period, which ended on June 6, 2005. Project Description The Stampede Dam and Reservoir are located on the Little Truckee River approximately 8 miles above the confluence of the Little Truckee and Truckee River. The dam and reservoir are in Sierra County, California, about 11 miles northeast of the town of Truckee. The water source for Stampede Reservoir is the Little Truckee River drainage basin containing about 136 square miles of densely wooded slopes and grass meadowlands. When the Stampede Dam and Reservoir project was authorized in 1956, under Public Law 858 hydroelectric power development was included. However, during the period 1966–1970 when the Stampede Dam was built, power facilities were not constructed because the power function was not economically justified. Nevertheless, provisions were made to facilitate the addition of power facilities at a later date. Subsequently, in July 1976, a preliminary reevaluation of a powerplant at Stampede was conducted and published in a special Reclamation report Adding Powerplants at Existing Federal Dams in California. In the report, Reclamation recommended construction of a Stampede powerplant. As a result, definitive plan studies were initiated in FY 1977, and construction of the powerplant was completed in 1987. A one-half mile 60-kV transmission line interconnects the Stampede power facilities with Sierra’s transmission system. Stampede Dam and Reservoir is operated for four specific purposes: flood control, fisheries enhancement, recreation, and power generation. The powerplant has a 3.65 MW generator and it provides approximately 11 million kWh annually. The energy generated by the powerplant has a priority reservation for designated project use loads. All remaining energy generation is sold on a non-firm basis under the conditions outlined in Western’s contract with Sierra. Energy generated at Stampede is dependent on the run of the river and is, therefore, non-firm. The Lahontan National Fish Hatchery and the Marble Bluff Fish Facility are project use facilities entitled to energy from the Stampede Powerplant. The Marble Bluff Fish Hatchery is located on the Truckee River about 3.5 miles upstream from Pyramid Lake. The other project use facility, the Lahontan E:\FR\FM\29AUN1.SGM 29AUN1 51038 Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Notices National Fish Hatchery, is located off the Carson River just south of Carson City in Gardnerville, Nevada. The loads at these facilities are projected to be approximately 2 million kWh annually. Power Repayment Study Western prepares a PRS each FY to determine if revenues will be sufficient to repay, within the required time, all costs assigned to the power function. Repayment criteria are based on law, applicable policies, including DOE Order RA 6120.2, and authorizing legislation. To benefit project use loads and market the energy from Stampede, Western’s contract with Sierra provides for the SEEA. Under this contract, Sierra accepts delivery of all energy generated from Stampede into Sierra’s electrical system. The dollar value of the Stampede energy received by Sierra during any month is credited into the SEEA at the floor rate. Western can use the SEEA to benefit project use facilities Based on estimated expenses and projected revenues generated from the floor rate, Western anticipates including an annual cost of $401,000 in the CVP PRR for the 5-year rate case period (FY 2006–2010). and market energy from Stampede to preference entities. The formula for the provisional floor rate, per the contract with Sierra, is equal to 85 percent of the then effective, non-time differentiated rate provided in Sierra’s California Quarterly Short-Term Purchase Price Schedule for as-available purchases from qualifying facilities with capacities of 100 kW or less. This provisional floor rate is used to calculate the value of the SEEA and determines the benefit of Stampede power for project use loads. Western applies the ratio of projected project use costs to the projected revenue recorded in the SEEA to determine a non-reimbursable percentage. This non-reimbursable percentage is then applied to the appropriate power-related costs to determine the reimbursable costs. The reimbursable costs are reduced by revenues from sales made at the floor rate. Under the 2004 Power Marketing Plan, the remaining reimbursable costs are then transferred to the CVP PRR. Existing and Provisional Rates and Revenue Requirement The provisional rate for Stampede non-firm energy results in no change to the floor rate. This rate adjustment also marks a transition to a new marketing plan for Stampede. Any energy remaining after meeting project use requirements is marketed under the 2004 Power Marketing Plan and mitigates the need for a ceiling rate. In addition, the provisional formula rate calculates an annual transfer of Stampede revenue to the CVP PRR. The following table compares the current and provisional non-firm rates as listed under the existing (SNF–5) and provisional (SNF–6) rate schedules. COMPARISON OF EXISTING AND PROVISIONAL RATES WASHOE PROJECT, STAMPEDE POWERPLANT Existing rates (as of 10/1/00) Non-firm energy formula rate components Provisional rates (effective 10/1/05) (1) (2) 17.89 90.07 N/A Rate Schedule ............................................................................................... Floor Rate (Mills/kWh) ................................................................................... Ceiling Rate ................................................................................................... Estimated Stampede Annual Transferred PRR ($) ....................................... 17.89 N/A $401,000 Percent change .................................. 0 N/A N/A 1 SNF–5. 2 SNF–6. Certification of Rates Western’s Administrator certified that the provisional non-firm power formula rates for Stampede are the lowest possible rates consistent with sound business principles. The provisional formula rate was developed following administrative policies and applicable laws. Non-Firm Power Formula Rate and Power Revenue Requirement Discussion Statement of Revenue and Related Expenses The following table provides a summary of projected revenues and expenses data for the Stampede nonfirm power formula rate through the 5year provisional rate approval period, including a comparison of existing rate data to provisional rate data and the difference. According to Reclamation Law, Western must establish rates sufficient to recover O&M, other annual and interest expenses, and repay power investment and irrigation aid. STAMPEDE NON-FIRM POWER RATE COMPARISON OF 5-YEAR RATE PERIOD (FY 2006–2010) TOTAL REVENUES AND EXPENSES Provisional revenue requirement ($000) Existing rate ($000) Difference ($000) Total Revenues .............................................................................................. Revenue Distribution: Expenses: O&M ........................................................................................................ Project Use Expense .............................................................................. Interest .................................................................................................... $2,905 $2,989 $84 64 952 1,147 64 952 1,213 0 0 66 Total Expenses ................................................................................ 2,163 2,229 66 Principal Payments: Capitalized Expenses ............................................................................. Original Project and Additions ................................................................ Replacements ......................................................................................... 742 0 0 760 0 0 18 0 0 VerDate Aug<18>2005 15:17 Aug 26, 2005 Jkt 205001 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 E:\FR\FM\29AUN1.SGM 29AUN1 Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Notices 51039 STAMPEDE NON-FIRM POWER RATE COMPARISON OF 5-YEAR RATE PERIOD (FY 2006–2010) TOTAL REVENUES AND EXPENSES—Continued Provisional revenue requirement ($000) Existing rate ($000) Difference ($000) Irrigation .................................................................................................. N/A N/A N/A Total Principal Payments ................................................................ 742 760 18 Total Revenue Distribution ....................................................... 2,905 2,989 84 Basis for Rate Development To benefit project use loads and market the energy from Stampede, Western’s contract with Sierra provides for the SEEA. Under this contract, Sierra accepts delivery of all energy generated from Stampede into Sierra’s electrical system. The dollar value of the Stampede energy received by Sierra during any month is credited into the SEEA at the floor rate. The formula for the provisional floor rate, per the contract with Sierra, is equal to 85 percent of the then effective, non-time differentiated rate provided in Sierra’s California Quarterly Short-Term Purchase Price Schedule for as-available purchases from qualifying facilities with capacities of 100 kW or less. This provisional floor rate is used to calculate the value of the SEEA and determines the benefit of Stampede power for project use loads. Western applies the ratio of projected project use costs to the projected revenue recorded in the SEEA to determine a nonreimbursable percentage. This nonreimbursable percentage is then applied to the appropriate power-related costs to determine the reimbursable costs. The reimbursable costs are reduced by revenues from sales made at the floor rate. Under the 2004 Power Marketing Plan, the remaining reimbursable costs after meeting project use service are then transferred to the CVP PRR. The provisional formula rate for Stampede power is: STAMPEDE ANNUAL TRANSFERRED PRR = STAMPEDE ANNUAL PRR¥STAMPEDE REVENUE Where: Stampede Annual Transferred PRR = Stampede annual costs (Power Revenue Requirement) transferred to the CVP. Stampede Annual PRR = The total power revenue requirement for Stampede required to repay all reimbursable annual costs, including interest and the investment within the allowable period. Stampede Revenue = Revenue generated from the floor rate and project generation. Floor Rate = Per the contract with Sierra, is equal to 85 percent of the then effective, non-time differentiated rate provided in Sierra’s California Quarterly Short-Term Purchase Price Schedule for as-available purchases from qualifying facilities with capacities of 100 kW or less. Western received no comments on the rate proposal during the public comment and consultation period that ended on June 6, 2005. that this action does not require a regulatory flexibility analysis since it is a rulemaking of particular applicability involving rates or services applicable to public property. notification requirements under 5 U.S.C. 801 because the action is a rulemaking of particular applicability relating to rates or services and involves matters of procedure. Availability of Information Environmental Compliance Information about this rate adjustment, including power repayment studies, comments, letters, memorandums, and other supporting material made and kept by Western and used to develop the provisional rates, is available for public review in the Sierra Nevada Regional Office, Western Area Power Administration, 114 Parkshore Drive, Folsom, California. In compliance with the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321, et seq.); Council on Environmental Quality Regulations (40 CFR parts 1500–1508); and DOE NEPA Regulations (10 CFR part 1021), Western has determined that this action is categorically excluded from preparing an environmental assessment or an environmental impact statement. Submission to the Federal Energy Regulatory Commission Regulatory Procedure Requirements Determination Under Executive Order 12866 Comments Regulatory Flexibility Analysis The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) requires Federal agencies to perform a regulatory flexibility analysis if a final rule is likely to have a significant economic impact on a substantial number of small entities and there is a legal requirement to issue a general notice of proposed rulemaking. Western has determined VerDate Aug<18>2005 15:17 Aug 26, 2005 Jkt 205001 Western has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no clearance of this notice by the Office of Management and Budget is required. Small Business Regulatory Enforcement Fairness Act Western has determined that this rule is exempt from congressional PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 The interim rates herein confirmed, approved, and placed into effect, together with supporting documents, will be submitted to the Commission for confirmation and final approval. Order In view of the foregoing and under the authority delegated to me, I confirm and approve on an interim basis, effective October 1, 2005, Rate Schedule SNF–6 for the Washoe Project, Stampede Division of the Western Area Power Administration. The rate schedule shall remain in effect on an interim basis, pending the Commission’s confirmation and approval of them or substitute rates on a final basis through September 30, 2010. E:\FR\FM\29AUN1.SGM 29AUN1 51040 Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Notices Dated: August 16, 2005. Clay Sell, Deputy Secretary. Rate Schedule SNF–6 (Supersedes Schedule SNF–5) United States Department of Energy, Western Area Power Administration, Washoe Project, Stampede Division Schedule of Rates for Non-Firm Power Formula Rate Effective: October 1, 2005, through September 30, 2010. Available: Within the marketing area served by the Sierra Nevada Customer Service Region. Applicable: To preference customers under the 2004 Power Marketing Plan and to the Sierra Pacific Power Company under the terms of Contract No. 14–SAO–00010. Character and Conditions of Service: Alternating current, 60 hertz, threephase, delivered and metered at the voltages and points established by contract. Non-Firm Power Formula Rate: The formula for the floor rate, per the contract with Sierra, is equal to 85 percent of the then effective, non-time differentiated rate provided in Sierra’s California Quarterly Short-Term Purchase Price Schedule for as-available purchases from qualifying facilities with capacities of 100 kW or less. This floor rate is used to calculate the value of the SEEA and determines the benefit of Stampede power for project use loads. Western applies the ratio of projected project use costs to the projected revenue recorded in the SEEA to determine a non-reimbursable percentage. This non-reimbursable percentage is then applied to the appropriate power-related costs to determine the reimbursable costs. The reimbursable costs are reduced by the revenues from sales made at the floor rate. Under the 2004 Power Marketing Plan, the remaining reimbursable costs are then transferred to the CVP PRR. The formula rate for Stampede power is: STAMPEDE ANNUAL TRANSFERRED PRR = STAMPEDE ANNUAL PRR¥STAMPEDE REVENUE Where: Stampede Annual Transferred PRR = Stampede annual costs (Power Revenue Requirement) transferred to the CVP. Stampede Annual PRR = The total power revenue requirement for Stampede required to repay all reimbursable annual costs, including interest and the investment within the allowable period. Stampede Revenue = Revenue generated from the floor rate and project generation. Floor Rate = Per the contract with Sierra, is equal to 85 percent of the then effective, non-time differentiated rate provided in Sierra’s California Quarterly Short-Term Purchase Price Schedule for as-available purchases from qualifying facilities with capacities of 100 kW or less. Billing: Billing for the floor rate will be as specified in the service agreement. Adjustment for Losses: Losses will be accounted for under this rate schedule as stated in the service agreement. [FR Doc. 05–17106 Filed 8–26–05; 8:45 am] BILLING CODE 6450–01–P ENVIRONMENTAL PROTECTION AGENCY [FRL–7961–2] Proposed Settlement Agreement, Clean Air Act Citizen Suit Environmental Protection Agency (EPA). ACTION: Notice of proposed consent decree; request for public comment. AGENCY: SUMMARY: In accordance with section 113(g) of the Clean Air Act, as amended (‘‘Act’’), 42 U.S.C. (7413(g), notice is hereby given of a proposed Consent Decree to address a lawsuit filed by Our Children’s Earth Foundation and the Sierra Club (collectively ‘‘Plaintiffs’’): Our Children’s Earth Found. et al. v. U.S. EPA, No. C 05–00094 CW (N.D. Cal.). On or about January 6, 2005, Plaintiffs filed a complaint alleging that EPA had failed to perform a nondiscretionary duty to review and, if appropriate, revise the new source performance standards (‘‘NSPS’’) for petroleum refineries and equipment VerDate jul<14>2003 16:19 Aug 26, 2005 Jkt 205001 leaks as required by Section 111(b) of the Clean Air Act, 42 U.S.C. 7411(b)(1)(B). Under the terms of the proposed Consent Decree, deadlines are established for EPA to review and, if appropriate, revise the NSPS standards for Subparts J, VV and GGG, 40 CFR 60.100–109, 60.480–498, 60.590–593. DATES: Written comments on the proposed Consent Decree must be received by September 28, 2005. ADDRESSES: Submit your comments, identified by docket ID number OGC– 2005–0013, online at http:// www.epa.gov/edocket (EPA’s preferred method); by e-mail to oei.docket@epa.gov; mailed to EPA Docket Center, Environmental Protection Agency, Mailcode: 2822T, 1200 Pennsylvania Ave., NW., Washington, DC 20460–0001; or by hand delivery or courier to EPA Docket Center, EPA West, Room B102, 1301 Constitution Ave., NW., Washington, DC, between 8:30 a.m. and 4:30 p.m. Monday through Friday, excluding legal holidays. Comments on a disk or CD– ROM should be formatted in WordPerfect or ASCII file, avoiding the use of special characters and any form of encryption, and may be mailed to the mailing address above. FOR FURTHER INFORMATION CONTACT: Sonja Petersen, Air and Radiation Law Office (2344A), Office of General Counsel, U.S. Environmental Protection Agency, 1200 Pennsylvania Ave., NW., PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 Washington, DC 20460, telephone: (202) 564–4079. SUPPLEMENTARY INFORMATION: I. Additional Information About the Proposed Consent Decree The proposed Consent Decree would resolve the deadline suit filed by Plaintiffs alleging that EPA failed to review and, if appropriate, revise the new source performance standards (‘‘NSPS’’) for petroleum refineries and equipment leaks (NSPS subparts J, VV and GGG). The proposed Consent Decree establishes deadlines by which EPA must review and revise all standards in subparts J, VV, and GGG except to the extent that EPA sets forth a proposed determination that review and/or revision is not appropriate. The Consent Decree relates only to these deadlines. It does not require the Administrator to make any specific revisions to the standards. The Consent Decree provides the following schedule for reviewing and, if appropriate, revising these subparts. EPA must: (1) Within twelve months of entry of the Consent Decree, propose any appropriate revisions to the standards in NSPS subparts VV and GGG; (2) within twenty-four months of entry of the Consent Decree, sign a final rule containing any appropriate revisions to the standards in NSPS subparts VV and GG; (3) within eighteen months of entry of the Consent Decree, E:\FR\FM\29AUN1.SGM 29AUN1

Agencies

[Federal Register Volume 70, Number 166 (Monday, August 29, 2005)]
[Notices]
[Pages 51035-51040]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-17106]


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

DEPARTMENT OF ENERGY

Western Area Power Administration


Washoe Project-Rate Order No. WAPA-119

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of order concerning a non-firm power formula rate.

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

SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate 
Order No. WAPA-119 and Rate Schedule SNF-6, placing a non-firm power 
formula rate from the Stampede Powerplant of the Washoe Project 
(Stampede) of the Western Area Power Administration (Western) into 
effect on an interim basis. The provisional formula rate will be in 
effect until the Federal Energy Regulatory Commission (Commission) 
confirms, approves, and places it into effect on a final basis or until 
replaced by other rates. The provisional rate will provide sufficient 
revenue to pay all annual costs, including interest expense, and repay 
power investment and irrigation aid, within the allowable periods.

DATES: Rate Schedule SNF-6 will be placed into effect on an interim 
basis on the first day of the first full billing period beginning on or 
after October 1, 2005, and will be in effect until the Commission 
confirms, approves, and places the rate schedule in effect on a final 
basis through September 30, 2010, or until the rate schedule is 
superseded.

FOR FURTHER INFORMATION CONTACT: Mr. James D. Keselburg, Regional 
Manager, Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4418, or Mr. Sean Sanderson, Rates Manager, Sierra Nevada Customer 
Service Region, Western Area Power Administration, 114 Parkshore Drive, 
Folsom, CA 95630-4710, (916) 353-4466.

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved 
existing Rate Schedule SNF-5 for Stampede non-firm energy on August 22, 
2000 (Rate Order No. WAPA-93, September 1, 2000). The Commission 
confirmed and approved the rate schedule on October 19, 2000, in FERC 
Docket No. EF00-5161-000. The existing rate schedule is effective from

[[Page 51036]]

October 1, 2000, through September 30, 2005.
    The existing non-firm power Rate Schedule SNF-5 consists of floor 
and ceiling rates and is designed to recover an annual revenue 
requirement. The floor rate for non-firm energy from Stampede is 17.89 
mills per kilowatthour (mills/kWh) and on average for the 5-year rate 
period provides sufficient revenue to repay nearly 100 percent of 
annual expenses, excluding interest expense. The current ceiling rate 
was set by a power repayment study and provides sufficient revenues to 
repay all annual costs, including interest expense, and the investment 
within the allowable period.
    The Central Valley Project (CVP) 2004 Power Marketing Plan (2004 
Power Marketing Plan) states that the output from the Washoe Project 
remaining after meeting project use loads will be marketed to the CVP 
preference customers. Beginning October 1, 2005, the costs remaining 
after meeting project use requirements are included in the CVP Power 
Revenue Requirement (PRR) on an annual basis. In addition, any energy 
remaining after meeting project use requirements will be marketed under 
the 2004 Power Marketing Plan. This situation makes it unnecessary to 
establish a new proposed ceiling rate for Stampede. Western's Contract 
No. 94-SAO-00010 with the Sierra Pacific Resources (Sierra) sets the 
floor rate.
    The existing non-firm Rate Schedule SNF-5 is being superseded by 
SNF-6. SNF-6 removes the ceiling rate and provides a formula for 
determining Stampede's annual PRR transferred to the CVP PRR.
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to Western's Administrator, (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy, and (3) the authority to confirm, 
approve, and place into effect on a final basis to remand or to 
disapprove such rates to the Commission. Existing Department of Energy 
(DOE) procedures for public participation in power rate adjustments (10 
CFR part 903) were published on September 18, 1985.
    Under Delegation Order Nos. 00-037.00 and 00-001.00A, 10 CFR part 
903, and 18 CFR part 300, I hereby confirm, approve, and place Rate 
Order No. WAPA-119, the non-firm energy formula rate for Stampede, into 
effect on an interim basis. The new Rate Schedule SNF-6 will be 
promptly submitted to the Commission for confirmation and approval on a 
final basis.

    Dated: August 16, 2005.
Clay Sell,
Deputy Secretary.

Department of Energy, Deputy Secretary

[Rate Order No. WAPA-119]

    In the matter of: Western Area Power Administration Rate 
Adjustment for the Washoe Project, Stampede Division, Non-Firm Power 
Formula Rate; Order Confirming, Approving, and Placing the Washoe 
Project, Stampede Division, Non-firm Power Formula Rate Into Effect 
on an Interim Basis

    This rate was established in accordance with section 302 of the DOE 
Organization Act, (42 U.S.C. 7152). This Act transferred to, and vested 
in, the Secretary of Energy the power marketing functions of the 
Secretary of the Department of the Interior and Reclamation under the 
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, particularly section 9(c) of the 
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and other Acts 
that specifically apply to the project involved.
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to Western's Administrator, (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy, and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand or to 
disapprove such rates to the Commission. Existing DOE procedures for 
public participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985.

Acronyms and Definitions

    As used in this Rate Order, the following acronyms and definitions 
apply:
    2004 Power Marketing Plan: The 2004 CVP Power Marketing Plan (64 FR 
34417) effective January 1, 2005.
    Administrator: The Administrator of the Western Area Power 
Administration.
    Ancillary Services: Those services necessary to support the 
transfer of electricity while maintaining reliable operation of the 
transmission provider's transmission system in accordance with standard 
utility practice.
    Base Resource: The Central Valley and Washoe Project power output 
and existing power purchase contracts extending beyond 2004, as 
determined by Western to be available for marketing, after meeting the 
requirements of Project Use and First Preference Customers, and any 
adjustments for maintenance, reserves, transformation losses, and 
certain ancillary services.
    Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment expressed in kilowatts.
    Commission: The Federal Energy Regulatory Commission.
    Customer: An entity with a contract that receives service from the 
Western's Sierra Nevada Customer Service Region (SNR).
    CVP: The Central Valley Project is a multipurpose Federal water 
development project extending from the Cascade Range in northern 
California to the plains along the Kern River south of Bakersfield, 
California.
    DOE: United States Department of Energy.
    DOE Order RA 6120.2: A DOE order outlining power marketing 
administration financial reporting and ratemaking procedures.
    FERC: The Commission (to be used when referencing Commission 
Orders).
    First Preference: A Customer or entity qualified to use Preference 
power within a county of origin (Trinity, Calaveras, and Tuolumne) as 
specified under the Trinity River Division Act of August 12, 1955 (69 
Stat. 719) and the Flood Control Act of 1962 (76 Stat. 1173, 1191-
1192).
    Floor Rate: Per the contract with Sierra, is equal to 85 percent of 
the then effective, non-time differentiated rate provided in Sierra's 
California Quarterly Short-Term Purchase Price Schedule for as-
available purchases from qualifying facilities with capacities of 100 
kilowatts (kW) or less.
    FRN: Federal Register notice.
    FY: Fiscal Year; October 1 to September 30.
    kV: Kilovolt--The electrical unit of measure of electric potential 
that equals 1,000 volts.
    kW: Kilowatt--The electrical unit of capacity that equals 1,000 
watts.
    kWh: Kilowatthour--The electrical unit of energy that equals 1,000 
watts in 1 hour.
    Load: The amount of electric power or energy delivered or required 
at any specified point(s) on a transmission or distribution system.
    Mill: A monetary denomination of the United States that equals one-
tenth of a cent or one-thousandth of a dollar.
    Mills/kWh: Mills per kilowatthour. The unit of charge for energy.
    MW: Megawatt--The electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.

[[Page 51037]]

    NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et 
seq.).
    Net Revenue: Revenue remaining after paying all annual expenses.
    Non-firm: A type of product and/or service not always available at 
the time requested by the customer.
    O&M: Operation and Maintenance.
    Power: Capacity and Energy.
    Preference: The provisions of Reclamation Law which require Western 
to first make Federal power available to certain entities. For example, 
section 9(c) of the Reclamation Project Act of 1939 states that 
preference in the sale of Federal power shall be given to 
municipalities and other public corporations or agencies and also to 
cooperatives and other nonprofit organizations financed in whole or in 
part by loans made under the Rural Electrification Act of 1936 (43 
U.S.C. 485h(c)).
    Project Use: Power used to operate Washoe Project facilities under 
Reclamation Law. The Lahontan National Fish Hatchery and the Marble 
Bluff Fish Facility are designated project use loads of the Washoe 
Project.
    Provisional Rate: A rate which has been confirmed, approved, and 
placed into effect on an interim basis by the Deputy Secretary.
    PRR: Power revenue requirement. The annual revenue that must be 
collected to recover annual expenses such as O&M, purchase power, 
transmission service expenses, interest, deferred expenses, and repay 
Federal investments and other assigned costs.
    PRS: Power repayment study.
    Rate Brochure: A document dated May 2005 explaining the rationale 
and background for the rate proposal contained in this Rate Order.
    Reclamation: United States Department of the Interior, Bureau of 
Reclamation.
    Reclamation Law: A series of Federal laws. Viewed as a whole, these 
laws create the originating framework under which Western markets 
power.
    Revenue Requirement: The revenue required to recover annual 
expenses such as O&M, purchase power, transmission service expenses, 
interest, deferred expenses, and repay Federal investments and other 
assigned costs.
    SEEA: The Stampede Energy Exchange Account.
    Sierra: Sierra Pacific Power Company also known as Nevada Power and 
Sierra Pacific Resources.
    SNR: The Sierra Nevada Customer Service Region of Western.
    Stampede: Power system facilities of Washoe Project, Stampede 
Division.
    Stampede Annual PRR: The total power revenue requirement for 
Stampede required to repay all reimbursable annual costs, including 
interest and the investment within the allowable period.
    Stampede Revenue: Revenue generated from the floor rate and project 
generation.
    Washoe Project: A Reclamation project located in the Lahontan Basin 
in west-central Nevada and east-central California.
    Western: United States Department of Energy, Western Area Power 
Administration.

Effective Date

    The new interim rates will take effect on the first day of the 
first full billing period beginning on or after October 1, 2005, and 
will remain in effect until September 30, 2010, pending approval by the 
Commission on a final basis.

Public Notice and Comment

    Western followed the Procedures for Public Participation in Power 
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these rates. The steps Western took to involve interested 
parties in the rate process were:
    1. A Federal Register notice published on May 6, 2005, (70 FR 
24019), announced the proposed formula rate for non-firm energy from 
Stampede. This notice began the public consultation and comment period.
    2. On May 9, 2005, Western e-mailed the Federal Register notice (70 
FR 24019) to the SNR Preference Customers and interested parties 
explaining the fact that this was a minor rate adjustment. Therefore, 
there was no public information or comment forum for this rate process. 
Western also reiterated its availability to meet with interested 
parties to discuss the studies that support the formula rate.
    3. On May 9, 2005, Western also mailed letters to the SNR 
Preference Customers and interested parties transmitting the Web site 
address to obtain a copy of the FRN and providing instructions on how 
to receive a copy of the Rate Brochure.
    4. Western communicated clarifying information on the proposed rate 
with the following Customers and/or interested parties. This 
information is included in the record.

Bay Area Rapid Transit District, California.
Energy Source, Nevada.
Northern California Power Agency, California.
Sacramento Municipal Utility District, California.
Sierra Pacific Power Company, aka Nevada Power, Nevada.

    5. Western received no comment letters during the consultation and 
comment period, which ended on June 6, 2005.

Project Description

    The Stampede Dam and Reservoir are located on the Little Truckee 
River approximately 8 miles above the confluence of the Little Truckee 
and Truckee River. The dam and reservoir are in Sierra County, 
California, about 11 miles northeast of the town of Truckee. The water 
source for Stampede Reservoir is the Little Truckee River drainage 
basin containing about 136 square miles of densely wooded slopes and 
grass meadowlands.
    When the Stampede Dam and Reservoir project was authorized in 1956, 
under Public Law 858 hydroelectric power development was included. 
However, during the period 1966-1970 when the Stampede Dam was built, 
power facilities were not constructed because the power function was 
not economically justified. Nevertheless, provisions were made to 
facilitate the addition of power facilities at a later date.
    Subsequently, in July 1976, a preliminary reevaluation of a 
powerplant at Stampede was conducted and published in a special 
Reclamation report Adding Powerplants at Existing Federal Dams in 
California. In the report, Reclamation recommended construction of a 
Stampede powerplant. As a result, definitive plan studies were 
initiated in FY 1977, and construction of the powerplant was completed 
in 1987. A one-half mile 60-kV transmission line interconnects the 
Stampede power facilities with Sierra's transmission system.
    Stampede Dam and Reservoir is operated for four specific purposes: 
flood control, fisheries enhancement, recreation, and power generation. 
The powerplant has a 3.65 MW generator and it provides approximately 11 
million kWh annually. The energy generated by the powerplant has a 
priority reservation for designated project use loads. All remaining 
energy generation is sold on a non-firm basis under the conditions 
outlined in Western's contract with Sierra. Energy generated at 
Stampede is dependent on the run of the river and is, therefore, non-
firm.
    The Lahontan National Fish Hatchery and the Marble Bluff Fish 
Facility are project use facilities entitled to energy from the 
Stampede Powerplant. The Marble Bluff Fish Hatchery is located on the 
Truckee River about 3.5 miles upstream from Pyramid Lake. The other 
project use facility, the Lahontan

[[Page 51038]]

National Fish Hatchery, is located off the Carson River just south of 
Carson City in Gardnerville, Nevada. The loads at these facilities are 
projected to be approximately 2 million kWh annually.

Power Repayment Study

    Western prepares a PRS each FY to determine if revenues will be 
sufficient to repay, within the required time, all costs assigned to 
the power function. Repayment criteria are based on law, applicable 
policies, including DOE Order RA 6120.2, and authorizing legislation.
    To benefit project use loads and market the energy from Stampede, 
Western's contract with Sierra provides for the SEEA. Under this 
contract, Sierra accepts delivery of all energy generated from Stampede 
into Sierra's electrical system. The dollar value of the Stampede 
energy received by Sierra during any month is credited into the SEEA at 
the floor rate. Western can use the SEEA to benefit project use 
facilities and market energy from Stampede to preference entities. The 
formula for the provisional floor rate, per the contract with Sierra, 
is equal to 85 percent of the then effective, non-time differentiated 
rate provided in Sierra's California Quarterly Short-Term Purchase 
Price Schedule for as-available purchases from qualifying facilities 
with capacities of 100 kW or less. This provisional floor rate is used 
to calculate the value of the SEEA and determines the benefit of 
Stampede power for project use loads. Western applies the ratio of 
projected project use costs to the projected revenue recorded in the 
SEEA to determine a non-reimbursable percentage. This non-reimbursable 
percentage is then applied to the appropriate power-related costs to 
determine the reimbursable costs. The reimbursable costs are reduced by 
revenues from sales made at the floor rate. Under the 2004 Power 
Marketing Plan, the remaining reimbursable costs are then transferred 
to the CVP PRR. Based on estimated expenses and projected revenues 
generated from the floor rate, Western anticipates including an annual 
cost of $401,000 in the CVP PRR for the 5-year rate case period (FY 
2006-2010).

Existing and Provisional Rates and Revenue Requirement

    The provisional rate for Stampede non-firm energy results in no 
change to the floor rate. This rate adjustment also marks a transition 
to a new marketing plan for Stampede. Any energy remaining after 
meeting project use requirements is marketed under the 2004 Power 
Marketing Plan and mitigates the need for a ceiling rate. In addition, 
the provisional formula rate calculates an annual transfer of Stampede 
revenue to the CVP PRR. The following table compares the current and 
provisional non-firm rates as listed under the existing (SNF-5) and 
provisional (SNF-6) rate schedules.

                Comparison of Existing and Provisional Rates Washoe Project, Stampede Powerplant
----------------------------------------------------------------------------------------------------------------
                                                   Existing rates  (as   Provisional rates
     Non-firm energy formula rate components           of 10/1/00)      (effective 10/1/05)     Percent change
----------------------------------------------------------------------------------------------------------------
Rate Schedule....................................                \(1)\                \(2)\  ...................
Floor Rate (Mills/kWh)...........................                17.89                17.89                    0
Ceiling Rate.....................................                90.07                  N/A                  N/A
Estimated Stampede Annual Transferred PRR ($)....                  N/A             $401,000                 N/A
----------------------------------------------------------------------------------------------------------------
\1\ SNF-5.
\2\ SNF-6.

Certification of Rates

    Western's Administrator certified that the provisional non-firm 
power formula rates for Stampede are the lowest possible rates 
consistent with sound business principles. The provisional formula rate 
was developed following administrative policies and applicable laws.

Non-Firm Power Formula Rate and Power Revenue Requirement Discussion

    According to Reclamation Law, Western must establish rates 
sufficient to recover O&M, other annual and interest expenses, and 
repay power investment and irrigation aid.

Statement of Revenue and Related Expenses

    The following table provides a summary of projected revenues and 
expenses data for the Stampede non-firm power formula rate through the 
5-year provisional rate approval period, including a comparison of 
existing rate data to provisional rate data and the difference.

    Stampede Non-Firm Power Rate Comparison of 5-Year Rate Period (FY 2006-2010) Total Revenues and Expenses
----------------------------------------------------------------------------------------------------------------
                                                      Existing rate     Provisional revenue
                                                          ($000)        requirement  ($000)   Difference  ($000)
----------------------------------------------------------------------------------------------------------------
Total Revenues...................................               $2,905               $2,989                  $84
Revenue Distribution:
Expenses:
    O&M..........................................                   64                   64                    0
    Project Use Expense..........................                  952                  952                    0
    Interest.....................................                1,147                1,213                   66
                                                  ----------------------
        Total Expenses...........................                2,163                2,229                   66
                                                  ======================
Principal Payments:
    Capitalized Expenses.........................                  742                  760                   18
    Original Project and Additions...............                    0                    0                    0
    Replacements.................................                    0                    0                    0

[[Page 51039]]

 
    Irrigation...................................                  N/A                  N/A                  N/A
                                                  ----------------------
        Total Principal Payments.................                  742                  760                   18
                                                  ======================
            Total Revenue Distribution...........                2,905                2,989                   84
----------------------------------------------------------------------------------------------------------------

Basis for Rate Development

    To benefit project use loads and market the energy from Stampede, 
Western's contract with Sierra provides for the SEEA. Under this 
contract, Sierra accepts delivery of all energy generated from Stampede 
into Sierra's electrical system. The dollar value of the Stampede 
energy received by Sierra during any month is credited into the SEEA at 
the floor rate. The formula for the provisional floor rate, per the 
contract with Sierra, is equal to 85 percent of the then effective, 
non-time differentiated rate provided in Sierra's California Quarterly 
Short-Term Purchase Price Schedule for as-available purchases from 
qualifying facilities with capacities of 100 kW or less. This 
provisional floor rate is used to calculate the value of the SEEA and 
determines the benefit of Stampede power for project use loads. Western 
applies the ratio of projected project use costs to the projected 
revenue recorded in the SEEA to determine a non-reimbursable 
percentage. This non-reimbursable percentage is then applied to the 
appropriate power-related costs to determine the reimbursable costs. 
The reimbursable costs are reduced by revenues from sales made at the 
floor rate. Under the 2004 Power Marketing Plan, the remaining 
reimbursable costs after meeting project use service are then 
transferred to the CVP PRR.
    The provisional formula rate for Stampede power is:

 Stampede Annual Transferred PRR = Stampede Annual PRR-Stampede Revenue
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
Where:
    Stampede Annual Transferred PRR = Stampede annual costs (Power
     Revenue Requirement) transferred to the CVP.
    Stampede Annual PRR = The total power revenue requirement for
     Stampede required to repay all reimbursable annual costs, including
     interest and the investment within the allowable period.
    Stampede Revenue = Revenue generated from the floor rate and project
     generation.
    Floor Rate = Per the contract with Sierra, is equal to 85 percent of
     the then effective, non-time differentiated rate provided in
     Sierra's California Quarterly Short-Term Purchase Price Schedule
     for as-available purchases from qualifying facilities with
     capacities of 100 kW or less.
------------------------------------------------------------------------

Comments

    Western received no comments on the rate proposal during the public 
comment and consultation period that ended on June 6, 2005.

Availability of Information

    Information about this rate adjustment, including power repayment 
studies, comments, letters, memorandums, and other supporting material 
made and kept by Western and used to develop the provisional rates, is 
available for public review in the Sierra Nevada Regional Office, 
Western Area Power Administration, 114 Parkshore Drive, Folsom, 
California.

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to perform a regulatory flexibility analysis 
if a final rule is likely to have a significant economic impact on a 
substantial number of small entities and there is a legal requirement 
to issue a general notice of proposed rulemaking. Western has 
determined that this action does not require a regulatory flexibility 
analysis since it is a rulemaking of particular applicability involving 
rates or services applicable to public property.

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969 (42 U.S.C. 4321, et seq.); Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR 
part 1021), Western has determined that this action is categorically 
excluded from preparing an environmental assessment or an environmental 
impact statement.

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

Small Business Regulatory Enforcement Fairness Act

    Western has determined that this rule is exempt from congressional 
notification requirements under 5 U.S.C. 801 because the action is a 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

Submission to the Federal Energy Regulatory Commission

    The interim rates herein confirmed, approved, and placed into 
effect, together with supporting documents, will be submitted to the 
Commission for confirmation and final approval.

Order

    In view of the foregoing and under the authority delegated to me, I 
confirm and approve on an interim basis, effective October 1, 2005, 
Rate Schedule SNF-6 for the Washoe Project, Stampede Division of the 
Western Area Power Administration. The rate schedule shall remain in 
effect on an interim basis, pending the Commission's confirmation and 
approval of them or substitute rates on a final basis through September 
30, 2010.



[[Page 51040]]


    Dated: August 16, 2005.
Clay Sell,
Deputy Secretary.


Rate Schedule SNF-6 (Supersedes Schedule SNF-5)

United States Department of Energy, Western Area Power Administration, 
Washoe Project, Stampede Division

Schedule of Rates for Non-Firm Power Formula Rate

    Effective: October 1, 2005, through September 30, 2010.
    Available: Within the marketing area served by the Sierra Nevada 
Customer Service Region.
    Applicable: To preference customers under the 2004 Power Marketing 
Plan and to the Sierra Pacific Power Company under the terms of 
Contract No. 14-SAO-00010.
    Character and Conditions of Service: Alternating current, 60 hertz, 
three-phase, delivered and metered at the voltages and points 
established by contract.
    Non-Firm Power Formula Rate: The formula for the floor rate, per 
the contract with Sierra, is equal to 85 percent of the then effective, 
non-time differentiated rate provided in Sierra's California Quarterly 
Short-Term Purchase Price Schedule for as-available purchases from 
qualifying facilities with capacities of 100 kW or less. This floor 
rate is used to calculate the value of the SEEA and determines the 
benefit of Stampede power for project use loads. Western applies the 
ratio of projected project use costs to the projected revenue recorded 
in the SEEA to determine a non-reimbursable percentage. This non-
reimbursable percentage is then applied to the appropriate power-
related costs to determine the reimbursable costs. The reimbursable 
costs are reduced by the revenues from sales made at the floor rate. 
Under the 2004 Power Marketing Plan, the remaining reimbursable costs 
are then transferred to the CVP PRR.
    The formula rate for Stampede power is:

 Stampede Annual Transferred PRR = Stampede Annual PRR-Stampede Revenue
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
Where:
    Stampede Annual Transferred PRR = Stampede annual costs (Power
     Revenue Requirement) transferred to the CVP.
    Stampede Annual PRR = The total power revenue requirement for
     Stampede required to repay all reimbursable annual costs, including
     interest and the investment within the allowable period.
    Stampede Revenue = Revenue generated from the floor rate and project
     generation.
    Floor Rate = Per the contract with Sierra, is equal to 85 percent of
     the then effective, non-time differentiated rate provided in
     Sierra's California Quarterly Short-Term Purchase Price Schedule
     for as-available purchases from qualifying facilities with
     capacities of 100 kW or less.
------------------------------------------------------------------------

    Billing: Billing for the floor rate will be as specified in the 
service agreement.
    Adjustment for Losses: Losses will be accounted for under this rate 
schedule as stated in the service agreement.

[FR Doc. 05-17106 Filed 8-26-05; 8:45 am]
BILLING CODE 6450-01-P