Amistad and Falcon Projects Rate Order No. WAPA-143, 29682-29685 [E9-14683]
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Federal Register / Vol. 74, No. 119 / Tuesday, June 23, 2009 / Notices
Dated: June 18, 2009.
Angela C. Arrington,
Director, Information Collection Clearance
Division, Regulatory Information
Management Services, Office of Management.
Office of Elementary and Secondary
Education
Type of Review: New.
Title: Evaluation and Accountability
Reports for Title II, Part D of ESEA.
Abstract: This submission requests
emergency approval to require States to
submit to the Department two written
reports: (1) The State’s most recent Ed
Tech evaluation report; and (2) A
description of the States System of
Accountability for Ed Tech funds which
will include: (a) A description of how
the SEA will ensure, for school years
(SYs) 2009–2010 and 2010–2011, that
LEAs and eligible local entities that
receive Ed Tech funds (either
competitively or by formula) are
meeting their evaluation
responsibilities; and (b) a description of
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effectiveness of Ed Tech-supported
activities.
Additional Information: Approval is
needed by June 30, 2009 so that the
Department can issue relevant program
guidance and accountability reporting
requirements on July 1, 2009, when the
Department issues the Title II, D ARRA
grant awards. The Department has had
to work under extremely tight timelines
to develop program reporting
requirements consistent with the
unprecedented accountability and
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Frequency: Annually.
Affected Public: State, Local, or Tribal
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Reporting and Recordkeeping Hour
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Written requests for information should
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16:15 Jun 22, 2009
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LBJ, Washington, DC 20202–4537.
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[FR Doc. E9–14751 Filed 6–22–09; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Amistad and Falcon Projects Rate
Order No. WAPA–143
AGENCY: Western Area Power
Administration, DOE.
ACTION: Notice of Order Concerning a
Power Rate Formula.
SUMMARY: The Deputy Secretary of
Energy confirmed and approved Rate
Order No. WAPA–143 placing a power
rate formula for the Amistad and Falcon
Projects of the Western Area Power
Administration (Western) into effect on
an interim basis. The provisional power
rate formula will be in effect on an
interim basis until the Federal Energy
Regulatory Commission (FERC)
confirms, approves, and places it into
effect on a final basis, or until the power
rate formula is replaced by another
power rate formula.
DATES: The provisional rate formula will
be placed into effect on an interim basis
on June 8, 2009, and will be in effect
until the FERC confirms, approves, and
places the provisional rate formula into
effect on a final basis through June 7,
2014, or until superseded.
FOR FURTHER INFORMATION CONTACT: Mr.
Bradley S. Warren, CRSP Manager,
Colorado River Storage Project
Management Center, Western Area
Power Administration, 150 East Social
Hall Avenue, Suite 300, Salt Lake City,
UT 84111–1580, (801) 524–5493, e-mail
warren@wapa.gov, or Ms. Carol Loftin,
Rates Manager, Colorado River Storage
Project Management Center, Western
Area Power Administration, 150 East
Social Hall Avenue, Suite 300, Salt Lake
City, UT 84111–1580, (801) 524–6380,
e-mail loftinc@wapa.gov.
SUPPLEMENTARY INFORMATION: The
Amistad and Falcon Dams are features
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of international water storage projects
located on the Rio Grande River
between Texas and Mexico. Under the
terms of Contract No. 7–07–50–P0890
(Contract) dated August 9, 1977,
Western marketed the power from these
dams to two electric cooperatives, South
Texas Electric Cooperative, Inc. (STEC
or Customer), and Medina Electric
Cooperative (MEC). Under an October
19, 1995, amendment to the Contract,
MEC notified Western that it had
transferred its generation and
transmission facilities to STEC and
would be a distribution cooperative
served by STEC and requested that
MEC’s interest in the Contract be
assigned to STEC. Western approved the
Contract amendment. The power rate
formula of the Contract was approved
by the Federal Power Commission
(FPC), predecessor to FERC, in Docket
No. E–9566 on August 12, 1977 (59 FPC
1653), for a 5-year period effective on
the date of initial operation of the
Amistad Power Plant, June 8, 1983.1
According to article 9(a) of the
Contract, Western calculates the annual
installment to be paid by the Customer,
for the power generated at the Amistad
and Falcon power plants on or before
August 31 of the year preceding the
fiscal year to which it pertains, and
codifies this amount in a revised Exhibit
A to the Contract. Each annual
installment pays the annual amortized
portion of the United States’ investment
in the Amistad and Falcon hydroelectric
facilities with interest, and the
associated operation, maintenance, and
administrative costs. This repayment
schedule is not dependent upon the
power and energy made available for
sale or the rate of generation each year.
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, and (3) the authority
to confirm, approve, and place into
effect on a final basis, to remand, or to
disapprove such rates to FERC. Existing
Department of Energy procedures for
public participation in power rate
adjustments (10 CFR 903) were
published on September 18, 1985.
1 A 5-year rate renewal of this same rate formula
through June 7, 1993, was approved by FERC on
July 20, 1988, at 44 FERC ¶ 62,058. Subsequent 5year renewals of the rate formula have been
approved by FERC. The most recent approval was
on January 31, 2005, in Docket No. EF04–5101–000,
which approved the same rate formula through June
7, 2009 (110 FERC ¶ 62,083).
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Federal Register / Vol. 74, No. 119 / Tuesday, June 23, 2009 / Notices
Under Delegation Order Nos. 00–
037.00 and 00–001.00C, 10 CFR part
903, and 18 CFR part 300, I hereby
confirm, approve, and place Rate Order
No. WAPA–143 into effect on an interim
basis. The rate formula will be promptly
submitted to FERC for confirmation and
approval on a final basis.
Dated: Jun 15, 2009.
Daniel B. Poneman,
Deputy Secretary.
Department Of Energy
Secretary
Rate Order No. WAPA–143.
In the Matter of: Western Area Power
Administration Power Rate Formula
Adjustment for the Amistad and Falcon
Projects: Order Confirming, Approving,
and Placing the Power Rate Formula
for Amistad and Falcon Projects Into
Effect on an Interim Basis
This renewal of this power rate
formula for the Amistad and Falcon
Projects of the Western Area Power
Administration (Western) was
established in accordance with section
302 of the Department of Energy (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 the
Bureau of Reclamation (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 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
(FERC). 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:
Contract: Contract No. 7–07–50–P0890 dated
August 9, 1977, and amended on October
19, 2005, between Western and South
Texas Electric Cooperative.
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Customer: South Texas Electric Cooperative,
Inc.
DOE: Department of Energy.
DOE Order RA 6120.2: An order outlining
power marketing administration financial
reporting and ratemaking procedures.
FERC: Federal Energy Regulatory
Commission.
FPC: Federal Power Commission—
Predecessor to FERC.
FY: Fiscal year is the period from October 1
to September 30.
MEC: Medina Electric Cooperative.
NEPA: National Environmental Policy Act of
1969 (42 U.S.C. 4321, et seq.).
O&M: Operation and maintenance.
PRS: Power repayment study.
Reclamation: United States Department of
Interior, Bureau of Reclamation.
Secretary: Secretary of Energy.
STEC: South Texas Electric Cooperative, Inc.
U.S. Section: United States Section of the
International Boundary and Water
Commission.
Western: United States Department of Energy,
Western Area Power Administration.
Effective Date
The power rate formula will take
effect June 8, 2009, and will remain in
effect until June 7, 2014, pending
approval by FERC on a final basis.
Public Notice and Comment
Subsection 903.23(a) of 10 CFR 903
does not require either a consultation
and comment period, or public
information or comment forums for rate
extensions. Western considers this rate
order a rate extension since the power
rate formula is not changing; rather it is
going through the course of a 5-year
renewal. Western’s sole customer under
this rate extension, South Texas Electric
Cooperative, Inc. (Customer or STEC),
expressed its desire to continue using
the power rate formula through an email dated December 8, 2008. In
addition, on April 2, 2009, Western met
with the Customer in Nursery, Texas,
where Western notified it of Western’s
intent to continue the power rate
formula. Western also discussed the
number of years covered in the annual
installments, operation and
maintenance funding, answered
questions, and received comments and
suggestions. The Customer expressed
support for a renewal of the power rate
formula.
Project Description
The Amistad and Falcon Dams are
features of international water storage
projects located on the Rio Grande River
between Texas and Mexico. Western
markets the power from these dams
under the terms of Contract No. 7–07–
50–P0890 (Contract), dated August 9,
1977.
On August 12, 1977, in Docket No. E–
9566, the Federal Power Commission
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29683
(FPC) approved for a 5-year period the
power rate formula contained in the
Contract between Reclamation, and two
electric cooperatives, STEC and Medina
Electric Cooperative (MEC), to become
effective on the date of initial operation
of Amistad Power Plant (59 FPC 1653).
The effective date of the FPC order was
June 8, 1983. STEC and MEC agreed to
purchase all of the output of the
Amistad and Falcon Power Plants and
to pay the United States an annual
installment as discussed in the Contract
for a 50-year period, beginning when
electric service initially became
available from Amistad.
On October 1, 1977, the power
marketing functions of Reclamation
were transferred to Western and
Western became responsible for the
administration of the Contract. Western,
STEC and MEC executed Supplement
No. 1 to the Contract on April 10, 1986,
to clarify the method for determining
the annual installment consistent with
DOE Order No. RA 6120.2. Those
clarifications address repayment of
Falcon hydroelectric facilities within
the remaining period, establish interest
during construction at seven (7) percent,
discuss capitalization of major
replacements and additions at current
interest rates, and specify the actual
date of initial service as June 8, 1983.
Under an October 19, 1995,
amendment to the Contract, MEC
notified Western that it had transferred
its generation and transmission facilities
to STEC and would be a distribution
cooperative served by STEC and
requested that MEC’s interest in the
Contract be assigned to STEC. Western
approved the Contract amendment.
Supplement No. 1 required the
amount of each annual installment be
established in advance by the
contracting officer in consultation with
the U.S. Section and submitted to STEC
as Exhibit A on or before August 31 of
the year preceding the appropriate FY in
accordance with the following:
The amount of each annual
installment shall be the sum of:
(1) An annual repayment installment
including interest, to amortize within the
remaining period, the unpaid United States
investment in the Falcon hydroelectric
facilities and in the penstocks at Amistad
Dam; plus
(2) An annual installment to amortize over
a 50-year period, the United States actual
total investment costs with interest, for
hydroelectric power facilities, not including
penstocks, at Amistad Dam to be under the
jurisdiction of the U.S. Section, including the
costs of engineering plans, supervision,
administration of construction, and interest
during construction * * * and
(3) The annual operation, maintenance,
replacement, and administration costs of the
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Federal Register / Vol. 74, No. 119 / Tuesday, June 23, 2009 / Notices
U.S. Section and the administration costs of
Western related directly or indirectly to the
United States power facilities at Amistad
Dam and at Falcon Dam, provided that such
costs shall be based on prudent and
businesslike management practices and in
accordance with established electric industry
operation and maintenance practices * * *
The billing procedures contained in
Supplement No. 1 require Western to
submit an invoice to the Customer for
each monthly payment toward the
annual installment on or before the
tenth day of the month for which such
payment is due. Payments are due and
payable by the Customer on the first day
of the following month. Western divides
the calculated annual installment by
twelve and bills the Customer monthly
for this amount.
As detailed above, the rate formula of
the Contract was approved by the FPC,
for a 5-year period beginning June 8,
1983, and subsequent 5-year renewals of
the power rate formula have been
approved by FERC through June 7,
2009.1 Consequently, FERC’s approval
is now sought for an additional 5-year
period. The effective dates are
scheduled to be June 8, 2009, through
June 7, 2014.
Power Repayment Studies
The Contract requires that Western
calculate the annual installment to be
paid by the Customer for the power
generated at the Amistad and Falcon
Power Plants, in consultation with the
United States Section of the
International Boundary and Water
Commission (U.S. Section), and submit
it to the Customer in the form of a
contract exhibit on or before August 31
of the year preceding the FY to which
it pertains.
Western calculates the annual
installment based on 2 years of data.
The calculation includes the projected
costs of the rate installment year (future
FY) and an adjustment from the last
historic FY. The adjustment is the
surplus or deficit that occurs in the last
historic FY when actual costs and
repayment obligations are subtracted
from actual revenues. This surplus or
deficit is combined with the projected
rate installment year costs to arrive at
the rate installment.
Statement of Revenue and Related
Expenses
The following table provides a
summary of revenues and expenses for
the current power rate formula and the
actual revenues and expenses for the
same period.
AMISTAD/FALCON COMPARISON OF 6-YEAR REVENUES AND EXPENSES FY 2004–2009
($000)
1Actual
Projected
from FY 2004
PRS
Item
Total Revenues ............................................................................................................................
Revenues Distribution:
O&M ......................................................................................................................................
Interest ..................................................................................................................................
Repayment ...........................................................................................................................
(Deficit)/Surplus ....................................................................................................................
Total Revenue Distribution ...................................................................................................
from
FY 2008 PRS
28,825
29,702
877
14,479
11,629
2,717
........................
28,825
14,273
11,743
2,775
911
29,702
(206)
114
58
911
877
Difference
1 Although this rate process seeks approval for a 5-year period (FY 2009–2014), 6 years of data are shown in the above table due to FY 2009
data being an estimate, and is used for the current 2009 rate installment.
letters, e-mail, and other supporting
material made or kept by Western and
used to develop the power rate formula,
is available for public review at the
Colorado River Storage Project
AMISTAD/FALCON 6-YEAR PROJECManagement Center, Western Area
Power Administration, 150 East Social
TIONS1 REVENUES AND EXPENSES
Hall Avenue, Suite 300, Salt Lake City,
($000)
UT 84111. Some of these documents are
FY 2009–2014 available at https://www.wapa.gov/crsp/
ratescrsp/adjustments.htm under CRSP
Total Revenues ....................
28,789 Rate Adjustment documents for the
Revenue Distribution:
Amistad and Falcon Projects section.
The following table provides a
summary of the projected revenues and
expenses during the provisional power
rate formula period.
O&M ..............................
Interest ...........................
Investment Repayment
Total ...........................
14,080
11,035
3,674
28,789
Ratemaking Procedure Requirements
Environmental Compliance
Availability of Information
Information regarding this power rate
formula renewal, including a PRS,
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 the
1A 5-year rate renewal of this same rate formula
through June 7, 1993, was approved by FERC on
July 20, 1988, at 44 FERC § 62,058. Subsequent 5-
year renewals of the rate formula have been
approved by FERC. The most recent approval was
on January 31, 2005, in Docket No. EF04–5101–000,
1 Although this rate process seeks approval
for a 5-year period (FY 2009–2014), 6 years
of data are shown in the above table due to
FY 2009 data being an estimate, and is used
for the current 2009 rate installment.
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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.
Submission to Federal Energy
Regulatory Commission
The interim rate formula renewal
herein confirmed, approved, and placed
into effect on an interim basis, together
with supporting documents, will be
submitted to FERC for confirmation and
approval on a final basis.
Order
In view of the foregoing and under the
authority delegated to me, I confirm and
approve and place into effect on an
which approved the same rate formula through June
7, 2009 (110 FERC 62,083).
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Federal Register / Vol. 74, No. 119 / Tuesday, June 23, 2009 / Notices
or documents with the Commission
relating to the merits of an issue that
may affect the responsibilities of a
particular resource agency, they must
also serve a copy of the document on
that resource agency.
Comments, recommendations, terms
and conditions, and prescriptions may
Dated: June 15, 2009.
be filed electronically via the Internet in
Daniel B. Poneman.
lieu of paper. The Commission strongly
Deputy Secretary.
encourages electronic filings. See CFR
[FR Doc. E9–14683 Filed 6–22–09; 8:45 am]
385.2001(a)(1)(iii) and the instructions
BILLING CODE 6450–01–P
on the Commission’s Web site (https://
www.ferc.gov/docs-filing/ferconline.asp)
under the ‘‘e-filing’’ link. For a simpler
DEPARTMENT OF ENERGY
method of submitting text only
comments, click on ‘‘Quick Comment.’’
Federal Energy Regulatory
k. This application has been accepted,
Commission
and is ready for environmental analysis
at this time.
[Project No. 503–048]
l. The project consists of: (1) A 1,218Idaho Power Company; Notice of
foot-long concrete gravity and rock-fill
dam composed of an abutment
Application Ready for Environmental
embankment, a spillway section, a
Analysis and Soliciting Comments,
center island, the old powerhouse
Recommendations, Terms and
section, the intermediate dam, and the
Conditions, and Prescriptions
new powerhouse; (2) a 12-mile-long
June 16, 2009.
1,525-acre reservoir with a normal
Take notice that the following
maximum water surface elevation of
hydroelectric application has been filed 2,314 feet mean sea level (msl); (3)
with the Commission and is available
twelve equal-width, concrete spillways
for public inspection.
with a capacity of 105,112 cubic feet per
a. Type of Application: New license.
second (cfs) at reservoir elevation 2,318
b. Project No.: 503–048.
msl, divided into two sections (western
c. Date filed: June 26, 2008.
and eastern)—the western section,
d. Applicant: Idaho Power Company.
contiguous with the abutment
e. Name of Project: Swan Falls
embankment, is a gated, concrete ogee
Project.
section with eight radial gates, and the
f. Location: On the Snake River in Ada eastern section, which is adjacent to the
and Owyhee counties, Idaho, about 35
island, contains four radial gates; (4)
miles southwest of Boise. The project
two concrete flow channels; (5) two pitoccupies federal lands administered by
bulb turbine generators with a
the Bureau of Land Management.
nameplate rating of 25 MW; (6) a
g. Filed Pursuant to: Federal Power
powerhouse completed in 1994; (7) a
Act 16 USC 791 (a)–825(r).
1,400-foot-long, 120-foot-wide
h. Applicant Contact: Mr. Rex
excavated tailrace channel; (8) a 33,600Blackburn, Senior Vice President and
kilovolt ampere (kVA) main power
General Counsel, Idaho Power
transformer; (9) a 1-mile-long, 138Company, P.O. Box 70, Boise, Idaho,
kilovolt (kV) transmission line; and (10)
83707, rblackburn@idahopower.com.
appurtenant equipment. The estimated
i. FERC Contact: Jim Puglisi, (202)
average annual energy production from
502–6241, james.puglisi@ferc.gov.
the project is about 125,720 megawattj. Deadline for filing comments,
hours (MWh), with an average monthly
recommendations, terms and
generation ranging from 8,740 MWh in
conditions, and prescriptions is 60 days June to 11,750 MWh in January. The
from the issuance of this notice; reply
applicant proposes to continue the runcomments are due 105 days from the
of-river operations of the project with a
issuance date of this notice.
minor change to the minimum flow
All documents (original and eight
regime and continuation of the existing
copies) should be filed with: Kimberly
ramping rate restrictions. The applicant
D. Bose, Secretary, Federal Energy
also proposes a net reduction in the
Regulatory Commission, 888 First
acreage within the project boundary.
m. A copy of the application is
Street, NE., Washington, DC 20426.
available for review at the Commission
The Commission’s Rules of Practice
require all intervenors filing documents in the Public Reference Room or may be
viewed on the Commission’s Web site at
with the Commission to serve a copy of
https://www.ferc.gov using the
that document on each person on the
‘‘eLibrary’’ link. Enter the docket
official service list for the project.
Further, if an intervenor files comments number excluding the last three digits in
interim basis a renewal of the rate
formula, effective June 8, 2009. The rate
formula shall remain in effect on an
interim basis, pending FERC’s
confirmation and approval of this or a
substitute rate formula on a final basis
through June 7, 2014.
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16:15 Jun 22, 2009
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29685
the docket number field to access the
document. For assistance, contact FERC
Online Support at
FERCOnlineSupport@ferc.gov or tollfree at 1–866–208–3676, or for TTY,
(202) 502–8659. A copy is also available
for inspection and reproduction at the
address in item h above.
All filings must (1) bear in all capital
letters the title ‘‘COMMENTS’’, ‘‘REPLY
COMMENTS’’,
‘‘RECOMMENDATIONS,’’ ‘‘TERMS
AND CONDITIONS,’’ or
‘‘PRESCRIPTIONS;’’ (2) set forth in the
heading the name of the applicant and
the project number of the application to
which the filing responds; (3) furnish
the name, address, and telephone
number of the person submitting the
filing; and (4) otherwise comply with
the requirements of 18 CFR 385.2001
through 385.2005. All comments,
recommendations, terms and conditions
or prescriptions must set forth their
evidentiary basis and otherwise comply
with the requirements of 18 CFR 4.34(b).
Agencies may obtain copies of the
application directly from the applicant.
Each filing must be accompanied by
proof of service on all persons listed on
the service list prepared by the
Commission in this proceeding, in
accordance with 18 CFR 4.34(b), and
385.2010.
You may also register online at
https://www.ferc.gov/docs-filing/
esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects.
For assistance, contact FERC Online
Support.
n. A license applicant must file no
later than 60 days following the date of
issuance of this notice: (1) A copy of the
water quality certification; (2) a copy of
the request for certification, including
proof of the date on which the certifying
agency received the request; or (3)
evidence of waiver of water quality
certification.
Kimberly D. Bose,
Secretary.
[FR Doc. E9–14652 Filed 6–22–09; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. ID–6107–000]
Utt, James G.; Notice of Filing
June 16, 2009.
Take notice that on June 15, 2009,
James Utt filed an application for
authorization to hold interlocking
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]]>Agencies
[Federal Register Volume 74, Number 119 (Tuesday, June 23, 2009)]
[Notices]
[Pages 29682-29685]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-14683]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Amistad and Falcon Projects Rate Order No. WAPA-143
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Order Concerning a Power Rate Formula.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-143 placing a power rate formula for the Amistad and
Falcon Projects of the Western Area Power Administration (Western) into
effect on an interim basis. The provisional power rate formula will be
in effect on an interim basis until the Federal Energy Regulatory
Commission (FERC) confirms, approves, and places it into effect on a
final basis, or until the power rate formula is replaced by another
power rate formula.
DATES: The provisional rate formula will be placed into effect on an
interim basis on June 8, 2009, and will be in effect until the FERC
confirms, approves, and places the provisional rate formula into effect
on a final basis through June 7, 2014, or until superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Bradley S. Warren, CRSP Manager,
Colorado River Storage Project Management Center, Western Area Power
Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City,
UT 84111-1580, (801) 524-5493, e-mail warren@wapa.gov, or Ms. Carol
Loftin, Rates Manager, Colorado River Storage Project Management
Center, Western Area Power Administration, 150 East Social Hall Avenue,
Suite 300, Salt Lake City, UT 84111-1580, (801) 524-6380, e-mail
loftinc@wapa.gov.
SUPPLEMENTARY INFORMATION: The Amistad and Falcon Dams are features of
international water storage projects located on the Rio Grande River
between Texas and Mexico. Under the terms of Contract No. 7-07-50-P0890
(Contract) dated August 9, 1977, Western marketed the power from these
dams to two electric cooperatives, South Texas Electric Cooperative,
Inc. (STEC or Customer), and Medina Electric Cooperative (MEC). Under
an October 19, 1995, amendment to the Contract, MEC notified Western
that it had transferred its generation and transmission facilities to
STEC and would be a distribution cooperative served by STEC and
requested that MEC's interest in the Contract be assigned to STEC.
Western approved the Contract amendment. The power rate formula of the
Contract was approved by the Federal Power Commission (FPC),
predecessor to FERC, in Docket No. E-9566 on August 12, 1977 (59 FPC
1653), for a 5-year period effective on the date of initial operation
of the Amistad Power Plant, June 8, 1983.\1\
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\1\ A 5-year rate renewal of this same rate formula through June
7, 1993, was approved by FERC on July 20, 1988, at 44 FERC ] 62,058.
Subsequent 5-year renewals of the rate formula have been approved by
FERC. The most recent approval was on January 31, 2005, in Docket
No. EF04-5101-000, which approved the same rate formula through June
7, 2009 (110 FERC ] 62,083).
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According to article 9(a) of the Contract, Western calculates the
annual installment to be paid by the Customer, for the power generated
at the Amistad and Falcon power plants on or before August 31 of the
year preceding the fiscal year to which it pertains, and codifies this
amount in a revised Exhibit A to the Contract. Each annual installment
pays the annual amortized portion of the United States' investment in
the Amistad and Falcon hydroelectric facilities with interest, and the
associated operation, maintenance, and administrative costs. This
repayment schedule is not dependent upon the power and energy made
available for sale or the rate of generation each year.
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, and (3) the authority to confirm, approve, and
place into effect on a final basis, to remand, or to disapprove such
rates to FERC. Existing Department of Energy procedures for public
participation in power rate adjustments (10 CFR 903) were published on
September 18, 1985.
[[Page 29683]]
Under Delegation Order Nos. 00-037.00 and 00-001.00C, 10 CFR part
903, and 18 CFR part 300, I hereby confirm, approve, and place Rate
Order No. WAPA-143 into effect on an interim basis. The rate formula
will be promptly submitted to FERC for confirmation and approval on a
final basis.
Dated: Jun 15, 2009.
Daniel B. Poneman,
Deputy Secretary.
Department Of Energy
Secretary
Rate Order No. WAPA-143.
In the Matter of: Western Area Power Administration Power Rate Formula
Adjustment for the Amistad and Falcon Projects: Order Confirming,
Approving, and Placing the Power Rate Formula for Amistad and Falcon
Projects Into Effect on an Interim Basis
This renewal of this power rate formula for the Amistad and Falcon
Projects of the Western Area Power Administration (Western) was
established in accordance with section 302 of the Department of Energy
(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 the Bureau of
Reclamation (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 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
(FERC). 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:
Contract: Contract No. 7-07-50-P0890 dated August 9, 1977, and
amended on October 19, 2005, between Western and South Texas
Electric Cooperative.
Customer: South Texas Electric Cooperative, Inc.
DOE: Department of Energy.
DOE Order RA 6120.2: An order outlining power marketing
administration financial reporting and ratemaking procedures.
FERC: Federal Energy Regulatory Commission.
FPC: Federal Power Commission--Predecessor to FERC.
FY: Fiscal year is the period from October 1 to September 30.
MEC: Medina Electric Cooperative.
NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et
seq.).
O&M: Operation and maintenance.
PRS: Power repayment study.
Reclamation: United States Department of Interior, Bureau of
Reclamation.
Secretary: Secretary of Energy.
STEC: South Texas Electric Cooperative, Inc.
U.S. Section: United States Section of the International Boundary
and Water Commission.
Western: United States Department of Energy, Western Area Power
Administration.
Effective Date
The power rate formula will take effect June 8, 2009, and will
remain in effect until June 7, 2014, pending approval by FERC on a
final basis.
Public Notice and Comment
Subsection 903.23(a) of 10 CFR 903 does not require either a
consultation and comment period, or public information or comment
forums for rate extensions. Western considers this rate order a rate
extension since the power rate formula is not changing; rather it is
going through the course of a 5-year renewal. Western's sole customer
under this rate extension, South Texas Electric Cooperative, Inc.
(Customer or STEC), expressed its desire to continue using the power
rate formula through an e-mail dated December 8, 2008. In addition, on
April 2, 2009, Western met with the Customer in Nursery, Texas, where
Western notified it of Western's intent to continue the power rate
formula. Western also discussed the number of years covered in the
annual installments, operation and maintenance funding, answered
questions, and received comments and suggestions. The Customer
expressed support for a renewal of the power rate formula.
Project Description
The Amistad and Falcon Dams are features of international water
storage projects located on the Rio Grande River between Texas and
Mexico. Western markets the power from these dams under the terms of
Contract No. 7-07-50-P0890 (Contract), dated August 9, 1977.
On August 12, 1977, in Docket No. E-9566, the Federal Power
Commission (FPC) approved for a 5-year period the power rate formula
contained in the Contract between Reclamation, and two electric
cooperatives, STEC and Medina Electric Cooperative (MEC), to become
effective on the date of initial operation of Amistad Power Plant (59
FPC 1653). The effective date of the FPC order was June 8, 1983. STEC
and MEC agreed to purchase all of the output of the Amistad and Falcon
Power Plants and to pay the United States an annual installment as
discussed in the Contract for a 50-year period, beginning when electric
service initially became available from Amistad.
On October 1, 1977, the power marketing functions of Reclamation
were transferred to Western and Western became responsible for the
administration of the Contract. Western, STEC and MEC executed
Supplement No. 1 to the Contract on April 10, 1986, to clarify the
method for determining the annual installment consistent with DOE Order
No. RA 6120.2. Those clarifications address repayment of Falcon
hydroelectric facilities within the remaining period, establish
interest during construction at seven (7) percent, discuss
capitalization of major replacements and additions at current interest
rates, and specify the actual date of initial service as June 8, 1983.
Under an October 19, 1995, amendment to the Contract, MEC notified
Western that it had transferred its generation and transmission
facilities to STEC and would be a distribution cooperative served by
STEC and requested that MEC's interest in the Contract be assigned to
STEC. Western approved the Contract amendment.
Supplement No. 1 required the amount of each annual installment be
established in advance by the contracting officer in consultation with
the U.S. Section and submitted to STEC as Exhibit A on or before August
31 of the year preceding the appropriate FY in accordance with the
following:
The amount of each annual installment shall be the sum of:
(1) An annual repayment installment including interest, to
amortize within the remaining period, the unpaid United States
investment in the Falcon hydroelectric facilities and in the
penstocks at Amistad Dam; plus
(2) An annual installment to amortize over a 50-year period, the
United States actual total investment costs with interest, for
hydroelectric power facilities, not including penstocks, at Amistad
Dam to be under the jurisdiction of the U.S. Section, including the
costs of engineering plans, supervision, administration of
construction, and interest during construction * * * and
(3) The annual operation, maintenance, replacement, and
administration costs of the
[[Page 29684]]
U.S. Section and the administration costs of Western related
directly or indirectly to the United States power facilities at
Amistad Dam and at Falcon Dam, provided that such costs shall be
based on prudent and businesslike management practices and in
accordance with established electric industry operation and
maintenance practices * * *
The billing procedures contained in Supplement No. 1 require
Western to submit an invoice to the Customer for each monthly payment
toward the annual installment on or before the tenth day of the month
for which such payment is due. Payments are due and payable by the
Customer on the first day of the following month. Western divides the
calculated annual installment by twelve and bills the Customer monthly
for this amount.
As detailed above, the rate formula of the Contract was approved by
the FPC, for a 5-year period beginning June 8, 1983, and subsequent 5-
year renewals of the power rate formula have been approved by FERC
through June 7, 2009.\1\ Consequently, FERC's approval is now sought
for an additional 5-year period. The effective dates are scheduled to
be June 8, 2009, through June 7, 2014.
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\1\A 5-year rate renewal of this same rate formula through June
7, 1993, was approved by FERC on July 20, 1988, at 44 FERC Sec.
62,058. Subsequent 5-year renewals of the rate formula have been
approved by FERC. The most recent approval was on January 31, 2005,
in Docket No. EF04-5101-000, which approved the same rate formula
through June 7, 2009 (110 FERC 62,083).
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Power Repayment Studies
The Contract requires that Western calculate the annual installment
to be paid by the Customer for the power generated at the Amistad and
Falcon Power Plants, in consultation with the United States Section of
the International Boundary and Water Commission (U.S. Section), and
submit it to the Customer in the form of a contract exhibit on or
before August 31 of the year preceding the FY to which it pertains.
Western calculates the annual installment based on 2 years of data.
The calculation includes the projected costs of the rate installment
year (future FY) and an adjustment from the last historic FY. The
adjustment is the surplus or deficit that occurs in the last historic
FY when actual costs and repayment obligations are subtracted from
actual revenues. This surplus or deficit is combined with the projected
rate installment year costs to arrive at the rate installment.
Statement of Revenue and Related Expenses
The following table provides a summary of revenues and expenses for
the current power rate formula and the actual revenues and expenses for
the same period.
Amistad/Falcon Comparison of 6-Year Revenues and Expenses FY 2004-2009
($000)
----------------------------------------------------------------------------------------------------------------
Projected from \1\Actual from
Item FY 2004 PRS FY 2008 PRS Difference
----------------------------------------------------------------------------------------------------------------
Total Revenues.................................................. 28,825 29,702 877
Revenues Distribution:
O&M......................................................... 14,479 14,273 (206)
Interest.................................................... 11,629 11,743 114
Repayment................................................... 2,717 2,775 58
(Deficit)/Surplus.......................................... .............. 911 911
Total Revenue Distribution.................................. 28,825 29,702 877
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\1\ Although this rate process seeks approval for a 5-year period (FY 2009-2014), 6 years of data are shown in
the above table due to FY 2009 data being an estimate, and is used for the current 2009 rate installment.
The following table provides a summary of the projected revenues
and expenses during the provisional power rate formula period.
Amistad/Falcon 6-Year Projections\1\ Revenues and Expenses
($000)
------------------------------------------------------------------------
FY 2009-2014
------------------------------------------------------------------------
Total Revenues.......................................... 28,789
Revenue Distribution:
O&M................................................. 14,080
Interest............................................ 11,035
Investment Repayment................................ 3,674
Total............................................. 28,789
------------------------------------------------------------------------
\1\ Although this rate process seeks approval for a 5-year period (FY
2009-2014), 6 years of data are shown in the above table due to FY
2009 data being an estimate, and is used for the current 2009 rate
installment.
Availability of Information
Information regarding this power rate formula renewal, including a
PRS, letters, e-mail, and other supporting material made or kept by
Western and used to develop the power rate formula, is available for
public review at the Colorado River Storage Project Management Center,
Western Area Power Administration, 150 East Social Hall Avenue, Suite
300, Salt Lake City, UT 84111. Some of these documents are available at
https://www.wapa.gov/crsp/ratescrsp/adjustments.htm under CRSP Rate
Adjustment documents for the Amistad and Falcon Projects section.
Ratemaking Procedure Requirements
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 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.
Submission to Federal Energy Regulatory Commission
The interim rate formula renewal herein confirmed, approved, and
placed into effect on an interim basis, together with supporting
documents, will be submitted to FERC for confirmation and approval on a
final basis.
Order
In view of the foregoing and under the authority delegated to me, I
confirm and approve and place into effect on an
[[Page 29685]]
interim basis a renewal of the rate formula, effective June 8, 2009.
The rate formula shall remain in effect on an interim basis, pending
FERC's confirmation and approval of this or a substitute rate formula
on a final basis through June 7, 2014.
Dated: June 15, 2009.
Daniel B. Poneman.
Deputy Secretary.
[FR Doc. E9-14683 Filed 6-22-09; 8:45 am]
BILLING CODE 6450-01-P
