Washoe Project-Rate Order No. WAPA-136, 6958-6960 [E8-2148]
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Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices
accordance with Rules 211 and 214 of
the Commission’s Rules of Practice and
Procedure (18 CFR 385.211, 385.214).
Protests will be considered by the
Commission in determining the
appropriate action to be taken, but will
not serve to make protestants parties to
the proceeding. Any person wishing to
become a party must file a notice of
intervention or motion to intervene, as
appropriate. Such notices, motions, or
protests must be filed on or before the
comment date. Anyone filing a motion
to intervene or protest must serve a copy
of that document on the Applicant and
all the parties in this proceeding.
The Commission encourages
electronic submission of protests and
interventions in lieu of paper using the
‘‘eFiling’’ link at https://www.ferc.gov.
Persons unable to file electronically
should submit an original and 14 copies
of the protest or intervention to the
Federal Energy Regulatory Commission,
888 First Street, NE., Washington, DC
20426.
This filing is accessible on-line at
https://www.ferc.gov, using the
‘‘eLibrary’’ link and is available for
review in the Commission’s Public
Reference Room in Washington, DC.
There is an ‘‘eSubscription’’ link on the
Web site that enables subscribers to
receive e-mail notification when a
document is added to a subscribed
docket(s). For assistance with any FERC
Online service, please e-mail
FERCOnlineSupport@ferc.gov, or call
(866) 208–3676 (toll free). For TTY, call
(202) 502–8659.
Comment Date: 5 pm Eastern Time on
February 8, 2008.
Kimberly D. Bose,
Secretary.
[FR Doc. E8–2111 Filed 2–5–08; 8:45 am]
The
proposed formula rate for Stampede’s
non-firm power is designed to recover
an annual revenue requirement that
includes investment repayment,
interest, purchase power (if applicable),
reimbursable operation and
maintenance (O&M) expenses, and other
expenses.
The Deputy Secretary of Energy
approved Rate Schedule SNF–6, a nonfirm power formula rate on August 16,
2005.1
The proposed formula rate for
Stampede power is:
DEPARTMENT OF ENERGY
Western Area Power Administration
Washoe Project—Rate Order No.
WAPA–136
Western Area Power
Administration, DOE.
ACTION: Notice of Proposed Non-Firm
Power Formula Rate.
AGENCY:
The Western Area Power
Administration (Western) is proposing a
minor rate adjustment for non-firm
energy from the Stampede Powerplant
(Stampede), of the Washoe Project,
located in Sierra County, California. The
current rate expires September 30, 2010.
The proposed formula rate will provide
sufficient revenue to repay all annual
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Mr.
Sean Sanderson, Rates Manager, Sierra
Nevada Customer Service Region,
Western Area Power Administration,
114 Parkshore Drive, Folsom, CA
95630–4710, (916) 353–4466, e-mail
sander@wapa.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
BILLING CODE 6717–01–P
SUMMARY:
costs, including interest expense, and
repayment of required investment
within the allowable period. Western
will prepare a brochure that provides
detailed information on the formula rate
to all interested parties. The proposed
formula rate, under Rate Schedule SNF–
7, is scheduled to go into effect August
1, 2008, and will remain in effect
through July 31, 2013. Publication of
this Federal Register notice begins the
formal process for the proposed rate.
DATES: The consultation and comment
period begins today and will end March
7, 2008. Western will accept written
comments any time during the
consultation and comment period.
ADDRESSES: Send written comments to
Ms. Sonja A. Anderson, Power
Marketing Manager, Sierra Nevada
Customer Service Region, Western Area
Power Administration, 114 Parkshore
Drive, Folsom, CA 95630–4710, e-mail
sanderso@wapa.gov. Western will post
information about the rate process on its
Web site at https://www.wapa.gov/sn/
marketing/rates/. Western will post
official comments received via letter,
facsimile, and e-mail to its Web site
after the close of the comment period.
Western must receive written comments
by the end of the consultation and
comment period to ensure they are
considered in Western’s decision
process.
Stampede Annual Transferred PRR =
Stampede Annual PRR—Stampede
Revenue.
1 Rate Order No. WAPA–119, 70 FR 51035,
August 29, 2005, and the Commission confirmed
and approved the rate schedule on May 4, 2006,
under FERC Docket EF05–5161–000 (115 FERC ¶
62,137). Approval for Rate Schedule SNF–6 covered
5 years beginning October 1, 2005, and ending on
September 30, 2010.
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Where: Stampede Annual Transferred
Power Revenue Requirement (PRR) =
Stampede Annual PRR as identified
as a cost transferred to the Central
Valley Project (CVP).
Stampede Annual PRR = the total PRR
for Stampede required to repay all
annual costs, including interest, and
the investment within the allowable
period.
Stampede Revenue = Revenue from
applying the Stampede Energy
Exchange Account (SEEA) rate to
project generation.
To serve project use loads and
effectively market the energy from
Stampede, Western has contracted with
a third party (Contractor) that provides
for an SEEA. The SEEA is an annual
energy exchange account for Stampede
energy. Under this contract, the
Contractor accepts delivery of all energy
generated from Stampede and integrates
this generation into its resource
portfolio. The monthly calculation of
revenue from Stampede energy received
by the Contractor is credited into the
SEEA at the SEEA rate. Western can use
the SEEA to benefit project use facilities
and market energy from Stampede to
CVP preference entities.
In the SEEA, the revenues from sales
(generation revenues) made at the SEEA
rate are reduced by the project use and
station service power costs and SEEA
administrative costs. Western applies
the ratio of project use costs to the
generation revenue recorded in the
SEEA to determine a non-reimbursable
percentage. One hundred percent minus
this non-reimbursable percentage
establishes a reimbursable percentage.
This reimbursable percentage is then
applied to the appropriate power-related
costs to determine the reimbursable
costs for repayment. The reimbursable
costs are then netted against generation
revenues made at the SEEA rate. As
stipulated under the 2004 CVP Power
Marketing Plan, any remaining
reimbursable costs, to include interest
and annual capital costs, are then
transferred to the CVP for incorporation
into the CVP PRR.
Since 1994, the Sierra Pacific Power
Company (Sierra), through Contract 94–
SAO–00010 (Contract 00010), has
served as the Contractor for integrating
Stampede generation into its resource
portfolio and serving station service and
project use loads in Sierra’s service
territory. The current rate schedule
(SNF–6) links the current non-firm
power formula rate to Contract 00010
and the management of the SEEA. In
addition, the index that was used in
Rate Schedule SNF–6 to set the ‘‘floor
rate’’ was contained in Contract 00010.
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Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices
On May 10, 2007, the Truckee-Donner
Public Utilities District (Truckee
Donner) and the City of Fallon (Fallon),
two preference customers located
within Sierra’s control area, entered into
a contract with Western that replaces
Contract 00010. This new contract with
Truckee Donner and Fallon (TDF),
Contract 07–SNR–01026 (Contract
01026), uses a market index
methodology as the basis for valuing
Stampede generation. The effective date
of Contract 01026 was August 1, 2007.
The change in contractors and the ‘‘floor
rate’’ definition makes it necessary for
Western to initiate a new rate case to
revisit the formula rate. In this proposed
rate design, Western is using a general
term of ‘‘Contractor’’ in the
development of the proposed formula
rate and resulting rate schedule in order
to provide flexibility in the event the
contractor changes in the future.
As indicated above, the nonreimbursable portion of the annual O&M
costs are defined as the ratio of project
use costs (i.e., costs to serve project use
loads) divided by the generation
revenue from the Stampede Powerplant
(annual generation valuation).
Beginning in August 2007, due to the
change in the SEEA rate, Western
anticipates a reduction in the nonreimbursable percentage for the Washoe
Project. This condition will
subsequently increase reimbursable
costs to the preference power customers.
Western estimates that the reimbursable
O&M costs could increase between
$85,000 and $223,000 annually due to
the change in generation revenues.
The proposed formula rate will
materially increase the Stampede
Revenue for repayment of the Washoe
Project. As a general comparison, the
floor rate under the terminated Sierra
Contract 00010 was $17.89 per
megawatt hour (MWh). Western
estimates that the floor rate under the
current TDF Contract would have
ranged from $29.85 to $42.71 per
MWh.2 The table below provides further
comparison of fiscal year (FY) 04–07
Stampede revenues between Sierra’s
terminated contract and the new TDF
Contract. This information illustrates
the significance of the change in the
SEEA rate.
TABLE 1.—COMPARISON OF GENERATION REVENUES BETWEEN THE SIERRA AND TDF CONTRACT
Total
Stampede
gen (MWh)
FY
2004
2005
2006
2007
.............................................................
.............................................................
.............................................................
.............................................................
1 For
Sierra
Contract
00010
(Terminated)
9,586
7,831
16,142
11,239
Calculated
floor rate
revenue
TDF Contract 01026 (current)
Calculated
SEEA rate
revenue
(on-peak)
$171,500
140,102
288,788
201,070
Calculated
SEEA rate
revenue
(off-peak)
$234,171
160,005
334,916
220,580
Total
calculated
SEEA rate
revenue
$152,256
102,583
193,352
138,285
Difference
between
SEEA rate and
floor rate
revenues 1
$386,427
262,588
528,268
358,865
$214,927
122,487
239,480
157,794
illustrative purposes, the Sierra contract calculations are presumed to exist for the entire year.
Annual Stampede generation usually
creates sufficient revenues in the SEEA
to pay project use and station service
costs. Due to the low floor rate used to
credit the SEEA under the Sierra
contract, low Stampede generation
resulted in insufficient funds in the
SEEA in some fall and winter months to
cover the payment of project use and
station service costs. In these cases, the
U.S. Fish and Wildlife Service (FWS)
was required to use its Federal
appropriation to pay for its project use
loads’ electric service bills. Under the
new contract, Western anticipates that
generation valuation will be greater than
in the past, which will reduce FWS’s
burden of payment and protect project
use loads from incurring additional
costs as a result of its monthly power
costs exceeding SEEA balances.
Estimates of revenues and expenses
are listed in Table 2.
TABLE 2.—COMPARISON OF EXISTING AND PROPOSED NON-FIRM POWER FORMULA RATE COMPONENTS
([Based on a 5-year average for FY 2008–2012]) 1
Existing floor rate
($)
Component 2
Proposed SEEA
rate 2 ($) (effective
August 1, 2008)
Percent
change
214,680
560,064
161
0
239,723
213,993
584,164
233,207
239,723
211,626
584,508
2332
0
¥1
0
Total Expenses ......................................................................................................
1,037,880
1,269,064
22
Stampede Annual Transferred PRR (Stampede Revenue—Total Expenses) ...................
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Stampede Revenue .............................................................................................................
Expenses:
O&M (reimbursable only) .............................................................................................
Project Use ...................................................................................................................
Interest ..........................................................................................................................
Capital Repayment .......................................................................................................
(832,200)
(709,000)
¥14
1 Existing
and proposed rates are based on a historical generation average. The difference between the two rates is (1) different generation
valuation rates and (2) different reimbursable percentages as a result of the generation value.
2 Amounts represent the 5-year averages of each component.
2 This estimated floor rate was calculated using
historical hourly generation and market rate
information.
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Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices
Western will review the PRR for the
Stampede Powerplant semiannually in
or around March and September each
year. According to the existing rate
procedures for the CVP, Western will
review the CVP PRR in March and
September of each year (71 FR 45821).
The CVP rate procedures stipulate that
Western will analyze the CVP financial
data from October through February, to
the extent information is available, as
well as forecasted data for March
through September. In the case of
Stampede, Western will use the most
current Power Repayment Study (PRS)
and the disposition of the SEEA account
up through February and estimate
March through September and other
financial data, to the extent information
is available, to determine the amount of
costs to be included in the CVP PRR. In
September, when the next review
occurs, Western will use the same
methodology to include costs in the
CVP PRR for the following year. At the
time Western makes a final decision
regarding this proposed formula rate, to
the extent that updated financial data is
made available, Western will update the
PRS supporting the proposed rate.
Based on estimated expenses and
projected Stampede revenues, the
Stampede Annual Transferred PRR for
October 2008 through September 2009
(FY 2009), the first full year of the
proposed rate, is estimated to be
$480,000.
A comparison of existing and
proposed rates and revenue requirement
follows:
TABLE 3.—COMPARISON OF EXISTING AND PROPOSED RATES AND REVENUE REQUIREMENT WASHOE PROJECT,
STAMPEDE POWERPLANT
Existing rates
Proposed rates (effective 8/1/08)
Floor Rate (Mills/kWh) ...........................
SEEA Rate—Average ...........................
Stampede Annual Transferred PRR (5year average).
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Non-firm energy rates and PRR
0.01789 $/kWh ......................................
N/A ........................................................
$823,200 ...............................................
N/A ........................................................
0.04667 $/kWh ......................................
$709,000 ...............................................
Legal Authority
Stampede Powerplant is a feature of
the Washoe Project authorized by
Congress in 1956 and is located on the
Little Truckee River in Sierra County,
California (70 Stat.775 (1956)). The
powerplant has a maximum operating
capability of 3,650 kilowatts (kW) with
an estimated annual generation over the
past 12 years of 12-million KWh. Since
Stampede Powerplant has an installed
capacity of less than 20,000 kW and
generates less than 100 million kWh
annually for sale, the proposed rate
constitutes a minor rate adjustment.
Western has determined that it is not
necessary to hold a public information
or comment forum for this proposed
minor rate adjustment as defined by 10
CFR part 903.23(a). After review of
public comments, and possible
amendments or adjustments, Western
will recommend the Deputy Secretary of
Energy approve the proposed rate on an
interim basis.
Western is establishing the proposed
non-firm power formula rate for nonfirm energy for the Stampede
Powerplant under the Department of
Energy Organization Act (42 U.S.C.
7152); 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
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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
Federal Energy Regulatory Commission.
Existing Department of Energy (DOE)
procedures for public participation in
power rate adjustments are published in
Title 10 of the Code of Federal
Regulations in Part 903.
Pursuant to paragraph 1.5 of
Delegation Order No. 00–037.00,
Western’s Administrator approved the
power formula rate for the sale of shortterm, non-firm power to Truckee
Donner and Fallon effective August 1,
2007. The Administrator’s approval
provided interim rate authority between
the effective date of the new contract
(August 1, 2007) and the effective date
of the proposed rate (August 1, 2008).
The Administrator’s approval will
expire on July 31, 2008, or upon
approval of this proposed rate that
supersedes Rate Order No. WAPA–119,
whichever occurs earlier.
Availability of Information
All brochures, studies, comments,
letters, memorandums, or other
documents that Western initiates or uses
to develop the proposed rates are
available for inspection and copying at
the Sierra Nevada Regional Office,
located at 114 Parkshore Drive, Folsom,
California. Many of these documents
and supporting information are also
available on the Web site under the
‘‘Current Rates’’ section located at
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Percent change
N/A.
N/A.
¥14
https://www.wapa.gov/sn/marketing/
rates/.
Regulatory Procedure Requirements
Environmental Compliance
In compliance with the National
Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.); the
Council on Environmental Quality
Regulations for implementing NEPA (40
CFR 1500–1508); and DOE NEPA
Regulations Implementing Procedures
and Guidelines (10 CFR part 1021),
Western has determined this action is
categorically excluded from the
preparation of an environmental
assessment or 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.
Dated: January 17, 2008.
Timothy J. Meeks,
Administrator.
[FR Doc. E8–2148 Filed 2–5–08; 8:45 am]
BILLING CODE 6450–01–P
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]]>Agencies
[Federal Register Volume 73, Number 25 (Wednesday, February 6, 2008)]
[Notices]
[Pages 6958-6960]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2148]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Washoe Project--Rate Order No. WAPA-136
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Non-Firm Power Formula Rate.
-----------------------------------------------------------------------
SUMMARY: The Western Area Power Administration (Western) is proposing a
minor rate adjustment for non-firm energy from the Stampede Powerplant
(Stampede), of the Washoe Project, located in Sierra County,
California. The current rate expires September 30, 2010. The proposed
formula rate will provide sufficient revenue to repay all annual costs,
including interest expense, and repayment of required investment within
the allowable period. Western will prepare a brochure that provides
detailed information on the formula rate to all interested parties. The
proposed formula rate, under Rate Schedule SNF-7, is scheduled to go
into effect August 1, 2008, and will remain in effect through July 31,
2013. Publication of this Federal Register notice begins the formal
process for the proposed rate.
DATES: The consultation and comment period begins today and will end
March 7, 2008. Western will accept written comments any time during the
consultation and comment period.
ADDRESSES: Send written comments to Ms. Sonja A. Anderson, Power
Marketing Manager, Sierra Nevada Customer Service Region, Western Area
Power Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, e-
mail sanderso@wapa.gov. Western will post information about the rate
process on its Web site at https://www.wapa.gov/sn/marketing/rates/.
Western will post official comments received via letter, facsimile, and
e-mail to its Web site after the close of the comment period. Western
must receive written comments by the end of the consultation and
comment period to ensure they are considered in Western's decision
process.
FOR FURTHER INFORMATION CONTACT: Mr. Sean Sanderson, Rates Manager,
Sierra Nevada Customer Service Region, Western Area Power
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4466, e-mail sander@wapa.gov.
SUPPLEMENTARY INFORMATION: The proposed formula rate for Stampede's
non-firm power is designed to recover an annual revenue requirement
that includes investment repayment, interest, purchase power (if
applicable), reimbursable operation and maintenance (O&M) expenses, and
other expenses.
The Deputy Secretary of Energy approved Rate Schedule SNF-6, a non-
firm power formula rate on August 16, 2005.\1\
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\1\ Rate Order No. WAPA-119, 70 FR 51035, August 29, 2005, and
the Commission confirmed and approved the rate schedule on May 4,
2006, under FERC Docket EF05-5161-000 (115 FERC ] 62,137). Approval
for Rate Schedule SNF-6 covered 5 years beginning October 1, 2005,
and ending on September 30, 2010.
---------------------------------------------------------------------------
The proposed formula rate for Stampede power is:
Stampede Annual Transferred PRR = Stampede Annual PRR--Stampede
Revenue.
Where: Stampede Annual Transferred Power Revenue Requirement (PRR) =
Stampede Annual PRR as identified as a cost transferred to the Central
Valley Project (CVP).
Stampede Annual PRR = the total PRR for Stampede required to repay all
annual costs, including interest, and the investment within the
allowable period.
Stampede Revenue = Revenue from applying the Stampede Energy Exchange
Account (SEEA) rate to project generation.
To serve project use loads and effectively market the energy from
Stampede, Western has contracted with a third party (Contractor) that
provides for an SEEA. The SEEA is an annual energy exchange account for
Stampede energy. Under this contract, the Contractor accepts delivery
of all energy generated from Stampede and integrates this generation
into its resource portfolio. The monthly calculation of revenue from
Stampede energy received by the Contractor is credited into the SEEA at
the SEEA rate. Western can use the SEEA to benefit project use
facilities and market energy from Stampede to CVP preference entities.
In the SEEA, the revenues from sales (generation revenues) made at
the SEEA rate are reduced by the project use and station service power
costs and SEEA administrative costs. Western applies the ratio of
project use costs to the generation revenue recorded in the SEEA to
determine a non-reimbursable percentage. One hundred percent minus this
non-reimbursable percentage establishes a reimbursable percentage. This
reimbursable percentage is then applied to the appropriate power-
related costs to determine the reimbursable costs for repayment. The
reimbursable costs are then netted against generation revenues made at
the SEEA rate. As stipulated under the 2004 CVP Power Marketing Plan,
any remaining reimbursable costs, to include interest and annual
capital costs, are then transferred to the CVP for incorporation into
the CVP PRR.
Since 1994, the Sierra Pacific Power Company (Sierra), through
Contract 94-SAO-00010 (Contract 00010), has served as the Contractor
for integrating Stampede generation into its resource portfolio and
serving station service and project use loads in Sierra's service
territory. The current rate schedule (SNF-6) links the current non-firm
power formula rate to Contract 00010 and the management of the SEEA. In
addition, the index that was used in Rate Schedule SNF-6 to set the
``floor rate'' was contained in Contract 00010.
[[Page 6959]]
On May 10, 2007, the Truckee-Donner Public Utilities District
(Truckee Donner) and the City of Fallon (Fallon), two preference
customers located within Sierra's control area, entered into a contract
with Western that replaces Contract 00010. This new contract with
Truckee Donner and Fallon (TDF), Contract 07-SNR-01026 (Contract
01026), uses a market index methodology as the basis for valuing
Stampede generation. The effective date of Contract 01026 was August 1,
2007. The change in contractors and the ``floor rate'' definition makes
it necessary for Western to initiate a new rate case to revisit the
formula rate. In this proposed rate design, Western is using a general
term of ``Contractor'' in the development of the proposed formula rate
and resulting rate schedule in order to provide flexibility in the
event the contractor changes in the future.
As indicated above, the non-reimbursable portion of the annual O&M
costs are defined as the ratio of project use costs (i.e., costs to
serve project use loads) divided by the generation revenue from the
Stampede Powerplant (annual generation valuation). Beginning in August
2007, due to the change in the SEEA rate, Western anticipates a
reduction in the non-reimbursable percentage for the Washoe Project.
This condition will subsequently increase reimbursable costs to the
preference power customers. Western estimates that the reimbursable O&M
costs could increase between $85,000 and $223,000 annually due to the
change in generation revenues.
The proposed formula rate will materially increase the Stampede
Revenue for repayment of the Washoe Project. As a general comparison,
the floor rate under the terminated Sierra Contract 00010 was $17.89
per megawatt hour (MWh). Western estimates that the floor rate under
the current TDF Contract would have ranged from $29.85 to $42.71 per
MWh.\2\ The table below provides further comparison of fiscal year (FY)
04-07 Stampede revenues between Sierra's terminated contract and the
new TDF Contract. This information illustrates the significance of the
change in the SEEA rate.
---------------------------------------------------------------------------
\2\ This estimated floor rate was calculated using historical
hourly generation and market rate information.
Table 1.--Comparison of Generation Revenues Between the Sierra and TDF Contract
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sierra TDF Contract 01026 (current)
Contract 00010 ------------------------------------------------ Difference
Total (Terminated) between SEEA
FY Stampede ---------------- Calculated Calculated Total rate and floor
gen (MWh) Calculated SEEA rate SEEA rate calculated rate revenues
floor rate revenue (on- revenue (off- SEEA rate \1\
revenue peak) peak) revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
2004....................................................... 9,586 $171,500 $234,171 $152,256 $386,427 $214,927
2005....................................................... 7,831 140,102 160,005 102,583 262,588 122,487
2006....................................................... 16,142 288,788 334,916 193,352 528,268 239,480
2007....................................................... 11,239 201,070 220,580 138,285 358,865 157,794
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ For illustrative purposes, the Sierra contract calculations are presumed to exist for the entire year.
Annual Stampede generation usually creates sufficient revenues in
the SEEA to pay project use and station service costs. Due to the low
floor rate used to credit the SEEA under the Sierra contract, low
Stampede generation resulted in insufficient funds in the SEEA in some
fall and winter months to cover the payment of project use and station
service costs. In these cases, the U.S. Fish and Wildlife Service (FWS)
was required to use its Federal appropriation to pay for its project
use loads' electric service bills. Under the new contract, Western
anticipates that generation valuation will be greater than in the past,
which will reduce FWS's burden of payment and protect project use loads
from incurring additional costs as a result of its monthly power costs
exceeding SEEA balances.
Estimates of revenues and expenses are listed in Table 2.
Table 2.--Comparison of Existing and Proposed Non-Firm Power Formula Rate Components
([Based on a 5-year average for FY 2008-2012]) \1\
----------------------------------------------------------------------------------------------------------------
Proposed SEEA
Existing floor rate \2\ ($) Percent
Component \2\ rate ($) (effective August change
1, 2008)
----------------------------------------------------------------------------------------------------------------
Stampede Revenue............................................. 214,680 560,064 161
Expenses:
O&M (reimbursable only).................................. 0 233,207 2332
Project Use.............................................. 239,723 239,723 0
Interest................................................. 213,993 211,626 -1
Capital Repayment........................................ 584,164 584,508 0
==================================================
Total Expenses....................................... 1,037,880 1,269,064 22
----------------------------------------------------------------------------------------------------------------
Stampede Annual Transferred PRR (Stampede Revenue--Total (832,200) (709,000) -14
Expenses)...................................................
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\1\ Existing and proposed rates are based on a historical generation average. The difference between the two
rates is (1) different generation valuation rates and (2) different reimbursable percentages as a result of
the generation value.
\2\ Amounts represent the 5-year averages of each component.
[[Page 6960]]
Western will review the PRR for the Stampede Powerplant
semiannually in or around March and September each year. According to
the existing rate procedures for the CVP, Western will review the CVP
PRR in March and September of each year (71 FR 45821). The CVP rate
procedures stipulate that Western will analyze the CVP financial data
from October through February, to the extent information is available,
as well as forecasted data for March through September. In the case of
Stampede, Western will use the most current Power Repayment Study (PRS)
and the disposition of the SEEA account up through February and
estimate March through September and other financial data, to the
extent information is available, to determine the amount of costs to be
included in the CVP PRR. In September, when the next review occurs,
Western will use the same methodology to include costs in the CVP PRR
for the following year. At the time Western makes a final decision
regarding this proposed formula rate, to the extent that updated
financial data is made available, Western will update the PRS
supporting the proposed rate. Based on estimated expenses and projected
Stampede revenues, the Stampede Annual Transferred PRR for October 2008
through September 2009 (FY 2009), the first full year of the proposed
rate, is estimated to be $480,000.
A comparison of existing and proposed rates and revenue requirement
follows:
Table 3.--Comparison of Existing and Proposed Rates and Revenue Requirement Washoe Project, Stampede Powerplant
----------------------------------------------------------------------------------------------------------------
Proposed rates
Non-firm energy rates and PRR Existing rates (effective 8/1/08) Percent change
----------------------------------------------------------------------------------------------------------------
Floor Rate (Mills/kWh)............. 0.01789 $/kWh........ N/A.................. N/A.
SEEA Rate--Average................. N/A.................. 0.04667 $/kWh........ N/A.
Stampede Annual Transferred PRR (5- $823,200............. $709,000............. -14
year average).
----------------------------------------------------------------------------------------------------------------
Legal Authority
Stampede Powerplant is a feature of the Washoe Project authorized
by Congress in 1956 and is located on the Little Truckee River in
Sierra County, California (70 Stat.775 (1956)). The powerplant has a
maximum operating capability of 3,650 kilowatts (kW) with an estimated
annual generation over the past 12 years of 12-million KWh. Since
Stampede Powerplant has an installed capacity of less than 20,000 kW
and generates less than 100 million kWh annually for sale, the proposed
rate constitutes a minor rate adjustment. Western has determined that
it is not necessary to hold a public information or comment forum for
this proposed minor rate adjustment as defined by 10 CFR part
903.23(a). After review of public comments, and possible amendments or
adjustments, Western will recommend the Deputy Secretary of Energy
approve the proposed rate on an interim basis.
Western is establishing the proposed non-firm power formula rate
for non-firm energy for the Stampede Powerplant under the Department of
Energy Organization Act (42 U.S.C. 7152); 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 Federal Energy Regulatory Commission.
Existing Department of Energy (DOE) procedures for public participation
in power rate adjustments are published in Title 10 of the Code of
Federal Regulations in Part 903.
Pursuant to paragraph 1.5 of Delegation Order No. 00-037.00,
Western's Administrator approved the power formula rate for the sale of
short-term, non-firm power to Truckee Donner and Fallon effective
August 1, 2007. The Administrator's approval provided interim rate
authority between the effective date of the new contract (August 1,
2007) and the effective date of the proposed rate (August 1, 2008). The
Administrator's approval will expire on July 31, 2008, or upon approval
of this proposed rate that supersedes Rate Order No. WAPA-119,
whichever occurs earlier.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Western initiates or uses to develop the proposed rates
are available for inspection and copying at the Sierra Nevada Regional
Office, located at 114 Parkshore Drive, Folsom, California. Many of
these documents and supporting information are also available on the
Web site under the ``Current Rates'' section located at https://
www.wapa.gov/sn/marketing/rates/.
Regulatory Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.); the Council on Environmental Quality
Regulations for implementing NEPA (40 CFR 1500-1508); and DOE NEPA
Regulations Implementing Procedures and Guidelines (10 CFR part 1021),
Western has determined this action is categorically excluded from the
preparation of an environmental assessment or 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.
Dated: January 17, 2008.
Timothy J. Meeks,
Administrator.
[FR Doc. E8-2148 Filed 2-5-08; 8:45 am]
BILLING CODE 6450-01-P
