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