Central Arizona Project-Rate Order No. WAPA-153, 548 [2010-33278]

Agencies

• DEPARTMENT OF ENERGY
• Western Area Power Administration

[Federal Register Volume 76, Number 3 (Wednesday, January 5, 2011)]
[Notices]
[Page 548]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-33278]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Arizona Project-Rate Order No. WAPA-153

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Order Temporarily Extending Transmission Formula 
Rates.

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SUMMARY: This action is to extend the existing Central Arizona Project 
(CAP) formula rates through December 31, 2012. The existing 
Transmission Service Formula Rate Schedules CAP-FT2, CAP-NFT2, and CAP-
NITS2 expire on December 31, 2010. These Transmission Service Rate 
Schedules contain formula rates that are recalculated from annual 
updated financial and load data.

FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, e-mail 
jmurray@wapa.gov.

SUPPLEMENTARY INFORMATION: 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 the Administrator of Western 
Area Power Administration (Western); (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).
    The existing rates, contained in Rate Order No. WAPA-124 \1\ were 
approved for 5 years through December 31, 2010. Western is proposing to 
temporarily extend the existing CAP transmission service formula rates 
pursuant to 10 CFR 903.23 (b).
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    \1\ FERC confirmed and approved Rate Order No. WAPA-124 on June 
29, 2006 in Docket No. EF06-5111-000. See United States Department 
of Energy, Western Area Power Administration, Central Arizona 
Project, 115 FERC ] 62,326.
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    Western is engaged in ongoing discussions with CAP stakeholders and 
these discussions may ultimately result in Western proposing future 
changes to the formula rates. Therefore, Western believes it is 
premature to proceed with a formal rate adjustment process at this 
time. Extending the existing Transmission Service Rate Schedules CAP-
FT2, CAP-NFT2, and CAP-NITS2 through December 31, 2012, will provide 
adequate time for Western to finalize these discussions.
    The existing CAP formula rates collect sufficient revenue to meet 
all annual costs, including interest expense, and repayment of required 
investment, thus ensuring repayment of the project within the cost 
recovery criteria set forth in DOE order RA 6120.2.
    Western did not have a consultation and comment period and did not 
hold public information and comment forums, in accordance with 10 CFR 
903.23 (b).
    Following review of Western's proposal within the Department of 
Energy, I hereby approve Rate Order No. WAPA-153, extending the 
existing Transmission Service Rate Schedules CAP-FT2, CAP-NFT2, and 
CAP-NITS2 through December 31, 2012. Rate Order No. WAPA-153 will be 
submitted to FERC for informational purposes only.

    Dated: December 29, 2010.
Daniel B. Poneman,
Deputy Secretary.

Department of Energy

Deputy Secretary

In the Matter of:
    Western Area Power Administration, Rate Extension for Central 
Arizona Project, Transmission Service Rate Schedules.
    Rate Order No. WAPA-153.

Order Confirming and Approving an Extension of the Central Arizona 
Project Transmission Service Rate Schedules

    Section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152) 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 under the Reclamation Act of 
1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by 
subsequent laws, particularly section 9(c) of the Reclamation Project 
Act of 1939 (43 U.S.C. 485h(c)), and other Acts that specifically apply 
to the project involved.
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop long-term 
power and transmission rates to the Administrator of the Western Area 
Power Administration (Western); (2) the authority to confirm, approve, 
and place such rates into effect on an interim basis to the 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). This temporary extension 
is issued pursuant to the Delegation Order and DOE rate extension 
procedures at 10 CFR 903.23(b).

Background

    On June 29, 2006, in Docket No. EF06-5111-000 at 115 FERC ] 62,326 
FERC issued an order confirming, approving, and placing into effect on 
a final basis the Transmission Service Rate Schedules CAP-FT2, CAP-NFT2 
and CAP-NITS2 for the CAP. The Transmission Service Rates, Rate Order 
No. WAPA-124, were approved for 5 years beginning January 1, 2006 
through December 31, 2010.

Discussion

    Western is proposing to extend the existing transmission rate 
schedules pursuant to
    10 CFR 903.23(b). Western's existing Transmission Service Formula 
Rates, which are recalculated annually, would sufficiently recover 
project expenses (including interest) and capital requirements through 
December 31, 2012. Western did not have a consultation and comment 
period and did not hold public information and comment forums, in 
accordance with
    10 CFR 903.23(b).

Order

    In view of the above and under the authority delegated to me, I 
hereby extend from January 1, 2011 through December 31, 2012, the 
existing Rate Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2 for 
transmission service for the Central Arizona Project of the Western 
Area Power Administration.


    Dated: December 29, 2010.

Daniel B. Poneman,
Deputy Secretary.

[FR Doc. 2010-33278 Filed 1-4-11; 8:45 am]
BILLING CODE 6450-01-P