Robert D. Willis Hydropower Rate Schedules, 57351-57352 [E8-23230]

Agencies

• DEPARTMENT OF ENERGY
• Southwestern Power Administration

[Federal Register Volume 73, Number 192 (Thursday, October 2, 2008)]
[Notices]
[Pages 57351-57352]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23230]


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

DEPARTMENT OF ENERGY

Southwestern Power Administration


Robert D. Willis Hydropower Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of rate order.

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

SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective 
December 6, 2001, and 00-001.00C, effective January 31, 2007, the 
Deputy Secretary has approved and placed into effect on an interim 
basis Rate Order No. SWPA-59, which increases the power rate for the 
Robert Douglas Willis Hydropower Project (Willis) pursuant to the 
following Willis Rate Schedule:

    Rate Schedule RDW-08, Wholesale Rates for Hydro Power and Energy 
Sold to Sam Rayburn Municipal Power Agency (Contract No. DE-PM75-
85SW00117)


DATES: The effective period for the rate schedule specified in Rate 
Order No. SWPA-59 is October 1, 2008, through September 30, 2012.

FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Assistant 
Administrator, Office of Corporate Operations, Southwestern Power 
Administration, Department of Energy, One West Third Street, Tulsa, 
Oklahoma 74103, (918) 595-6690, jim.mcdonald@swpa.gov.

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for 
the Robert Douglas Willis project is $815,580 per year. The Federal 
Energy Regulatory Commission approved this rate on a final basis on 
February 23, 2007, in Docket EF-07-4081-000 for the period January 1, 
2007, through September 30, 2010 (see 118 FERC ] 62150). The 2008 
Willis Power Repayment Studies indicate the need for an increase in the 
annual rate by $113,808 or 14.0 percent beginning October 1, 2008.
    The Administrator, Southwestern Power Administration (Southwestern) 
has followed Title 10, Part 903 Subpart A, of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' in connection with the 
proposed rate schedule. On August 5, 2008, Southwestern published 
notice in the Federal Register (73 FR 45435), of a 30-day comment 
period, together with a combined Public Information and Comment Forum, 
to provide an opportunity for customers and other interested members of 
the public to review and comment on a proposed rate increase for the 
Willis project. The public forum was canceled when no one expressed an 
intention to participate. Written comments were accepted through 
September 4, 2008. One comment was received from Gillis & Angley, 
Counsellors at Law, on behalf of Sam Rayburn Municipal Power Agency, 
Sam Rayburn Dam Electric Cooperative, and the Vinton Public Power 
Authority, which stated that they had no objection to the proposed rate 
adjustment.
    Information regarding this rate proposal, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved Rate Order No. SWPA-59, on an interim basis, 
which increases the existing Robert D. Willis rate to $929,388, per 
year, for the period October 1, 2008, through September 30, 2012.

    Dated: September 25, 2008.
Jeffrey Kupfer,
Deputy Secretary.

Deputy Secretary of Energy

[Rate Order No. SWPA-59]

In the matter of: Southwestern Power Administration, Robert D. Willis 
Hydropower Project Rate; Order Confirming, Approving and Placing 
Increased Power Rate Schedule In Effect On an Interim Basis

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern 
Power Administration (Southwestern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 0204-108, effective 
December 14, 1983, the Secretary of Energy delegated to the 
Administrator of Southwestern the authority to develop power and 
transmission rates, delegated to the Deputy Secretary of the Department 
of Energy the authority to confirm, approve, and place in effect such 
rates on an interim basis and delegated to the Federal Energy 
Regulatory Commission (FERC) the authority to confirm and approve on a 
final basis or to disapprove rates developed by the Administrator under 
the delegation. Delegation Order No. 0204-108, as amended, was 
rescinded and subsequently replaced by Delegation Orders 00-037.00 
(December 6, 2001) and 00-001-00C (January 23, 2007). The Deputy 
Secretary issued this rate order pursuant to said delegations.

Background

    Dam B (Town Bluff Dam), located on the Neches River in eastern 
Texas downstream from the Sam Rayburn Dam, was originally constructed 
in 1951 by the U.S. Army Corps of Engineers (Corps) and provides 
streamflow regulation of releases from the Sam Rayburn Dam. The Lower 
Neches Valley Authority contributed funds toward construction of both 
projects and makes established annual payments for the right to 
withdraw up to 2000 cubic feet of water per second from Town Bluff Dam 
for its own use. Power was legislatively authorized at the project, but 
installation of hydroelectric facilities was deferred until justified 
by economic conditions. A determination of feasibility was made in a 
1982 Corps study. In 1983, the Sam Rayburn Municipal Power Agency 
(SRMPA) proposed to sponsor and finance the development at Town Bluff 
Dam in return for the output of the project to be delivered to its 
member municipalities and participating member cooperatives of the Sam 
Rayburn Dam Electric Cooperative. Since the hydroelectric facilities at 
the Town Bluff Dam have been completed, the facilities have been 
renamed the Robert Douglas Willis Hydropower Project (Willis).
    The Willis rate is unique in that it excludes the costs associated 
with the hydropower design and construction performed by the Corps, 
because all funds for these costs were provided by SRMPA. Under the 
Southwestern/SRMPA power sales Contract No. DE-PM75-85SW00117, SRMPA 
will continue to pay all annual operating and marketing costs, as well 
as expected capital replacement costs, through the rate paid to 
Southwestern, and will receive all power and energy produced at the 
project for a period of 50 years.
    In the FERC Docket No. EF07-4081-000, issued February 23, 2007, for 
the period January 1, 2007, through September 30, 2010, the FERC 
confirmed and approved the current annual Willis rate of $815,580.

Discussion

    Southwestern's Current PRS indicates that the existing annual power 
rate of

[[Page 57352]]

$815,580 is insufficient to produce the annual revenues necessary to 
accomplish repayment as required by Section 5 of the Flood Control Act 
of 1944 and Department of Energy (DOE) Order No. RA 6120.2. The 
increased revenue requirement is due to an increase in the U.S. Army 
Corps of Engineers (Corps) projected operations and maintenance costs. 
The Revised PRS indicates that an increase in annual revenues of 
$113,808 beginning October 1, 2008, is sufficient to accomplish 
repayment of the Federal investment in the required number of years. 
Accordingly, Southwestern developed a proposed rate schedule based on 
that increased revenue requirement.
    Title 10, Part 903, Subpart A of the Code of Federal Regulations, 
``Procedures for Public Participation in Power and Transmission Rate 
Adjustments and Extensions,'' has been followed in connection with the 
proposed rate adjustment. More specifically, opportunities for public 
review and comment during a 30-day period on the proposed Willis power 
rate were announced by a Federal Register (73 FR 45435) notice 
published on August 5, 2008. The combined Public Information and 
Comment Forum scheduled for August 13, 2008, in Tulsa, Oklahoma was 
canceled as no one expressed an intent to participate. Written comments 
were due by September 4, 2008. Southwestern provided the Federal 
Register notice, together with requested supporting data, to the 
customer and interested parties for review and comment during the 
formal period of public participation. In addition, prior to the formal 
30-day public participation process, Southwestern discussed with the 
customer representatives the preliminary information on the proposed 
rate adjustment. Only one formal comment was received during the public 
process. That comment, on behalf of SRMPA, Sam Rayburn Dam Electric 
Cooperative, and the Vinton Public Power Authority, expressed no 
objection to the final proposed rate.
    Upon conclusion of the comment period in September 2008, 
Southwestern finalized the PRS and rate schedule for the proposed 
annual rate of $929,388 which is the lowest possible rate needed to 
satisfy repayment criteria. This rate represents an annual increase of 
14.0 percent.

Availability of Information

    Information regarding this rate increase, including studies and 
other supporting material, is available for public review and comment 
in the offices of Southwestern Power Administration, One West Third 
Street, Tulsa, Oklahoma 74103.

Comments and Responses

    Southwestern received one written comment in which the customer 
representative expressed no objection to the proposed rate adjustment.

Other Issues

    There were no other issues raised during the informal discussions 
or during the formal public participation period.

Administrator's Certification

    The 2008 Revised Willis PRS indicates that the annual power rate of 
$929,388 will repay all costs of the project, including amortization of 
the power investment consistent with provisions of the Department of 
Energy (DOE) Order No. RA 6120.2. In accordance with Delegation Order 
Nos. 00-037.00 (December 6, 2001) and 00-001.00C (January 31, 2007), 
and Section 5 of the Flood Control Act of 1944, the Administrator has 
determined that the proposed Willis power rate is consistent with 
applicable law and the lowest possible rate consistent with sound 
business principles.

Environment

    The environmental impact of the rate increase proposal was 
evaluated in consideration of DOE's guidelines for implementing the 
procedural provisions of the National Environmental Policy Act, 10 CFR 
1021, and was determined to fall within the class of actions that are 
categorically excluded from the requirements of preparing either an 
Environmental Impact Statement or an Environmental Assessment.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me, I hereby confirm, approve and place in effect on an interim basis, 
for the period October 1, 2008, through September 30, 2012, the annual 
Robert Douglas Willis Hydropower Rate of $929,388 for the sale of power 
and energy from Robert Douglas Willis project to the Sam Rayburn 
Municipal Power Agency, under Contract No. DE-PM75-85SW00117, as 
amended. This rate shall remain in effect on an interim basis through 
September 30, 2012, or until the FERC confirms and approves the rate on 
a final basis.

    Dated: September 25, 2008.
Jeffrey Kupfer,
Deputy Secretary.
 [FR Doc. E8-23230 Filed 10-1-08; 8:45 am]
BILLING CODE 6450-01-P