Robert D. Willis Hydropower Rate, 64506-64508 [2012-25905]
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Federal Register / Vol. 77, No. 204 / Monday, October 22, 2012 / Notices
SPP Board of Directors
October 31, 2012 (8:00 a.m.–3:00
p.m.)
The discussions may address matters
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Dated: October 15, 2012.
Kimberly D. Bose,
Secretary.
[FR Doc. 2012–25816 Filed 10–19–12; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Southwestern Power Administration
Robert D. Willis Hydropower Rate
Southwestern Power
Administration, DOE.
ACTION: Notice of Rate Order.
AGENCY:
Pursuant to Delegation Order
Nos. 00–037.00, effective December 6,
2001, and 00–001.00D, effective January
22, 2010, the Deputy Secretary has
approved and placed into effect on an
interim basis Rate Order No. SWPA–64,
which increases the power rate for the
Robert Douglas Willis Hydropower
Project (Willis) pursuant to the Willis
Rate Schedule which supersedes the
existing rate schedule.
SUMMARY:
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The effective period for the rate
schedule specified in Rate Order No.
SWPA–64 is October 1, 2012, through
September 30, 2016.
FOR FURTHER INFORMATION CONTACT: Mr.
James K. McDonald, Assistant
Administrator, Southwestern Power
Administration, Department of Energy,
Williams Center Tower I, One West
Third Street, Tulsa, Oklahoma 74103,
(918) 595–6690,
jim.mcdonald@swpa.gov
SUPPLEMENTARY INFORMATION: Rate Order
No. SWPA–64, which has been
approved and placed into effect on an
interim basis, increases the power rate
for the Willis Project pursuant to the
following Rate Schedule:
Rate Schedule RDW–12, Wholesale
Rates for Hydro Power and Energy Sold
to Sam Rayburn Municipal Power
Agency (Contract No. DE–PM75–
85SW00117).
DATES:
The rate schedule supersedes the
existing rate schedule shown below:
Rate Schedule RDW–08, Wholesale Rates
for Hydro Power and Energy Sold to Sam
Rayburn Municipal Power Agency (Contract
No. DE–PM75–85SW00117) (superseded by
RDW–12).
Southwestern Power Administration’s
(Southwestern) Administrator has
determined, based on the 2012 Willis
Current Power Repayment Study, that
existing rates will not satisfy cost
recovery criteria specified in
Department of Energy Order No. RA
6120.2 and Section 5 of the Flood
Control Act of 1944. The finalized 2012
Willis Power Repayment Studies (PRSs)
indicate that an increase in annual
revenue of $142,944, or 15.4 percent,
beginning October 1, 2012, will satisfy
cost recovery criteria for the Willis
project. The proposed Willis rate
schedule would increase annual
revenues from $929,388 to $1,072,332,
to recover increased U.S. Army’s Corps
of Engineers (Corps) investments and
replacements in the hydroelectric
generating facility and increased
operations and maintenance costs.
The Administrator 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 July 10,
2012, Southwestern published notice in
the Federal Register, (77 FR 40609), of
the proposed rate increase for the Willis
project. Southwestern provided a 30-day
comment period as an opportunity for
customers and other interested members
of the public to review and comment on
the proposed rate increase.
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Federal Register / Vol. 77, No. 204 / Monday, October 22, 2012 / Notices
Southwestern did not hold the
combined Public Information and
Comment Forum (Forum) because
Southwestern did not receive any
requests to hold the Forum. Two
comments were received, one from
Brickfield Burchette Ritts and Stone, PC,
on behalf of the Sam Rayburn G&T
Electric Cooperative, Inc., which stated
they had no objection to the proposed
rate adjustment. The other comment, on
behalf of the Vinton Public Power
Authority, also stated no objection to
the increased rate proposal.
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, Williams Center Tower
I, One West Third Street, Tulsa,
Oklahoma 74103. Following review of
Southwestern’s proposal within the
Department of Energy, I approved, Rate
Order No. SWPA–64, on an interim
basis, which increases the existing
Robert Douglas Willis rate to $1,072,332
per year for the period October 1, 2012
through September 30, 2016.
Dated: October 15, 2012.
Daniel Poneman,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
In the matter of: Southwestern Power
Administration Robert D. Willis Hydropower
Project Rate )
Rate Order No. SWPA–64
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ORDER CONFIRMING, APPROVING AND
PLACING INCREASED POWER RATE
SCHEDULE IN EFFECT ON AN INTERIM
BASIS (October 15, 2012)
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. 00–037.00,
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. The Deputy Secretary issued this
interim rate order pursuant to that
delegation.
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BACKGROUND
The Robert Douglas Willis Hydropower
Project (Willis) (aka: Dam B and later 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 stream flow 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 the Willis project
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 of
hydropower at the Willis project 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.
The Willis rate 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
maintenance 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.
FERC confirmation and approval of the
current Willis rate schedule was provided in
FERC Docket No. EF08–4081–000 issued on
April 27, 2009, (127 FERC ¶ 62,072) effective
for the period October 1, 2008, through
September 30, 2012.
DISCUSSION
Southwestern prepared a 2012 Current
Power Repayment Study (PRS) which
indicated that the existing rate would not
satisfy present financial criteria regarding
repayment of investment within a 50-year
period due to increased U.S. Army Corps of
Engineers (Corps) investments, replacements
and operations and maintenance expenses in
the hydroelectric generating facilities. The
Revised PRS indicated the need for a 15.4
percent revenue increase. These preliminary
results which presented the basis for the
proposed revenue increase were provided to
the customers for their review prior to the
formal process.
The final 2012 Revised PRS indicates that
an increase in annual revenues of $142,944
(15.4 percent) is necessary beginning October
1, 2012, to accomplish repayment in the
required number of years. Accordingly,
Southwestern has prepared a proposed rate
schedule based on the additional revenue
requirement to ensure repayment.
Southwestern conducted the rate
adjustment proceeding in accordance with
Title 10, Part 903, Subpart A of the Code of
Federal Regulations, ‘‘Procedures for Public
Participation in Power and Transmission
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64507
Rate Adjustments and Extensions.’’ 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 notice published on
July 10, 2012 (77 FR 40609). The combined
Public Information and Comment Forum
scheduled for July 31, 2012, in Tulsa,
Oklahoma was canceled because
Southwestern did not receive any requests
that the forum be held. Southwestern
provided the Federal Register notice, together
with any requested supporting data, to the
customer and interested parties for review
and comment during the public comment
period. In response to concerns by
Southwestern’s customers during an informal
participation process prior to the formal
participation process, Southwestern is
increasing revenue in two steps over a twoyear period. Since our current rates are
sufficient to recover all average operation and
maintenance expenses during the next two
years, our ability to meet both annual and
long-term repayment criteria is satisfied by
increasing revenues in steps over the period.
The first step of the rate increase,
beginning October 1, 2012, would
incorporate one half of the required revenue
or 7.7 percent ($71,472). The second step of
the rate increase, beginning October 1, 2013,
and ending on September 30, 2016, would
incorporate the remaining one half of the
revenue requirement ($71,472 or 7.7 percent).
Southwestern will continue to perform its
Power Repayment Studies annually, and if
the 2013 results should indicate the need for
additional revenues, another rate filing will
be conducted and updated revenue
requirements implemented for FY 2013 and
thereafter.
Following the conclusion of the comment
period on August 9, 2012, Southwestern
finalized the PRS and rate schedule for the
proposed annual rate of $1,072,332 which is
the lowest possible rate needed to satisfy
repayment criteria. This rate represents an
annual increase of 15.4 percent. The
Administrator made the decision to submit
the rate proposal for interim approval and
implementation.
COMMENTS AND RESPONSES
Southwestern received two comments
during the public comment period. Both
comments, one on behalf of the Sam Rayburn
G&T Electric Cooperative, Inc., the other on
behalf of the Vinton Public Power Authority,
expressed no objection to the final proposed
rate.
AVAILABILITY OF INFORMATION
Information regarding this rate increase,
including studies, comments and other
supporting material, is available for public
review and comment in the offices of
Southwestern Power Administration, One
West Third Street, Tulsa, OK 74103.
ADMINISTRATION’S CERTIFICATION
The 2012 Willis Revised PRS indicates that
the increased power rate of $1,072,332 will
repay all costs of the project including
amortization of the power investment
consistent with the provisions of Department
of Energy Order No. RA 6120.2. In
accordance with Delegation Order No. 00–
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64508
Federal Register / Vol. 77, No. 204 / Monday, October 22, 2012 / Notices
037.00 (December 6, 2001), and Section 5 of
the Flood Control Act of 1944, the
Administrator has determined that the
proposed System rates are consistent with
applicable law and the lowest possible rates
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 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 by the
Secretary of Energy, I hereby confirm,
approve and place in effect on an interim
basis, effective October 1, 2012 through
September 30, 2016, the annual Robert
Douglas Willis Hydropower rate of
$1,072,332 for the sale of power and energy
from the 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,
2016, or until the FERC confirms and
approves the rate on a final basis.
Dated: October 15, 2012.
Daniel Poneman,
Deputy Secretary.
UNITED STATES DEPARTMENT OF
ENERGY
SOUTHWESTERN POWER
ADMINISTRATION
RATE SCHEDULE RDW–12 1
WHOLESALE RATES FOR HYDRO POWER
AND ENERGY SOLD TO SAM RAYBURN
MUNICIPAL POWER AGENCY
(CONTRACT NO. DE–PM75–85SW00117)
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Applicable:
To the power and energy purchased by
Sam Rayburn Municipal Power Agency
(SRMPA) from the Southwestern Power
Administration (Southwestern) under the
terms and conditions of the Power Sales
Contract dated June 28, 1985, as amended,
for the sale of all Hydro Power and Energy
generated at the Robert Douglas Willis
Hydropower Project (Robert D. Willis)
(formerly designated as Town Bluff).
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1.3 Hydro Power Rates, Terms, and
Conditions
1.3.1 Monthly Charge for the Period of
October 1, 2012 through September 30,
2013
$83,405 per month ($1,000,860 per year)
for Robert D. Willis Hydro Power and Energy
purchased by SRMPA from October 1, 2012,
through September 30, 2013.
1.3.2 Monthly Charge for the Period of
October 1, 2013 through September 30,
2016
$89,361 per month ($1,072,332 per year)
for Robert D. Willis Hydro Power and Energy
purchased by SRMPA from October 1, 2013,
through September 30, 2016.
[FR Doc. 2012–25905 Filed 10–19–12; 8:45 am]
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OECA–2012–0529; FRL–9523–4]
Agency Information Collection
Activities; Submission to OMB for
Review and Approval; Comment
Request; NESHAP for Mercury
(Renewal)
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
In compliance with the
Paperwork Reduction Act (44 U.S.C.
3501 et seq.), this document announces
that an Information Collection Request
(ICR) has been forwarded to the Office
of Management and Budget (OMB) for
review and approval. This is a request
to renew an existing approved
SUMMARY:
Character and Conditions of Service:
Three-phase, alternating current, delivered
at approximately 60 Hertz, at the nominal
Rate Schedule RDW–08
1. Wholesale Rates, Terms, and Conditions
for Hydro Power and Energy
1.1 These rates shall be applicable
regardless of the quantity of Hydro Power
and Energy available or delivered to SRMPA;
provided, however, that if an Uncontrollable
Force prevents utilization of both of the
project’s power generating units for an entire
billing period, and if during such billing
period water releases were being made which
otherwise would have been used to generate
Hydro Power and Energy, then Southwestern
shall, upon request by SRMPA, suspend
billing for subsequent billing periods, until
such time as at least one of the project’s
generating units is again available.
1.2 The term ‘‘Uncontrollable Force,’’ as
used herein, shall mean any force which is
not within the control of the party affected,
including, but not limited to, failure of water
supply, failure of facilities, flood, earthquake,
storm, lightning, fire, epidemic, riot, civil
disturbance, labor disturbance, sabotage, war,
acts of war, terrorist acts, or restraint by court
of general jurisdiction, which by exercise of
due diligence and foresight such party could
not reasonably have been expected to avoid.
BILLING CODE 6450–01–P
Effective:
During the period October 1, 2012, through
September 30, 2016, in accordance with
interim approval from Rate Order No.
SWPA–64 issued by the Deputy Secretary of
Energy on October 15, 2012 and pursuant to
final approval by the Federal Energy
Regulatory Commission.
1 Supersedes
voltage, at the point of delivery, and in such
quantities as are specified by contract.
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collection. The ICR which is abstracted
below describes the nature of the
collection and the estimated burden and
cost.
DATES: Additional comments may be
submitted on or before November 21,
2012.
Submit your comments,
referencing docket ID number EPA–HQ–
OECA–2012–0529, to: (1) EPA online,
using www.regulations.gov (our
preferred method), or by email to:
docket.oeca@epa.gov, or by mail to: EPA
Docket Center (EPA/DC), Environmental
Protection Agency, Enforcement and
Compliance Docket and Information
Center, mail code 28221T, 1200
Pennsylvania Avenue NW., Washington,
DC 20460; and (2) OMB at: Office of
Information and Regulatory Affairs,
Office of Management and Budget
(OMB), Attention: Desk Officer for EPA,
725 17th Street NW., Washington, DC
20503.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Learia Williams, Monitoring,
Assistance, and Media Programs
Division, Office of Compliance, Mail
Code 2227A, Environmental Protection
Agency, 1200 Pennsylvania Avenue
NW., Washington, DC 20460; telephone
number: (202) 564–4113; fax number:
(202) 564–0050; email address:
williams.learia@epa.gov.
EPA has
submitted the following ICR to OMB for
review and approval according to the
procedures prescribed in 5 CFR 1320.12.
On August 9, 2012 (77 FR 47631), EPA
sought comments on this ICR pursuant
to 5 CFR 1320.8(d). EPA received no
comments. Any additional comments on
this ICR should be submitted to both
EPA and OMB within 30 days of this
notice.
EPA has established a public docket
for this ICR under docket ID number
EPA–HQ–OECA–2012–0529, which is
available for public viewing online at
https://www.regulations.gov, or in person
viewing at the Enforcement and
Compliance Docket in the EPA Docket
Center (EPA/DC), EPA West, Room
3334, 1301 Constitution Avenue NW.,
Washington, DC. The EPA Docket
Center Public Reading Room is open
from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal
holidays. The telephone number for the
Reading Room is (202) 566–1744, and
the telephone number for the
Enforcement and Compliance Docket is
(202) 566–1752.
Use EPA’s electronic docket and
comment system at https://
www.regulations.gov to either submit or
view public comments, access the index
SUPPLEMENTARY INFORMATION:
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]]>Agencies
[Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
[Notices]
[Pages 64506-64508]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25905]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Robert D. Willis Hydropower Rate
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
-----------------------------------------------------------------------
SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective
December 6, 2001, and 00-001.00D, effective January 22, 2010, the
Deputy Secretary has approved and placed into effect on an interim
basis Rate Order No. SWPA-64, which increases the power rate for the
Robert Douglas Willis Hydropower Project (Willis) pursuant to the
Willis Rate Schedule which supersedes the existing rate schedule.
DATES: The effective period for the rate schedule specified in Rate
Order No. SWPA-64 is October 1, 2012, through September 30, 2016.
FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Assistant
Administrator, Southwestern Power Administration, Department of Energy,
Williams Center Tower I, One West Third Street, Tulsa, Oklahoma 74103,
(918) 595-6690, jim.mcdonald@swpa.gov
SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-64, which has been
approved and placed into effect on an interim basis, increases the
power rate for the Willis Project pursuant to the following Rate
Schedule:
Rate Schedule RDW-12, Wholesale Rates for Hydro Power and Energy
Sold to Sam Rayburn Municipal Power Agency (Contract No. DE-PM75-
85SW00117).
The rate schedule supersedes the existing rate schedule shown
below:
Rate Schedule RDW-08, Wholesale Rates for Hydro Power and Energy
Sold to Sam Rayburn Municipal Power Agency (Contract No. DE-PM75-
85SW00117) (superseded by RDW-12).
Southwestern Power Administration's (Southwestern) Administrator
has determined, based on the 2012 Willis Current Power Repayment Study,
that existing rates will not satisfy cost recovery criteria specified
in Department of Energy Order No. RA 6120.2 and Section 5 of the Flood
Control Act of 1944. The finalized 2012 Willis Power Repayment Studies
(PRSs) indicate that an increase in annual revenue of $142,944, or 15.4
percent, beginning October 1, 2012, will satisfy cost recovery criteria
for the Willis project. The proposed Willis rate schedule would
increase annual revenues from $929,388 to $1,072,332, to recover
increased U.S. Army's Corps of Engineers (Corps) investments and
replacements in the hydroelectric generating facility and increased
operations and maintenance costs.
The Administrator 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 July 10, 2012, Southwestern
published notice in the Federal Register, (77 FR 40609), of the
proposed rate increase for the Willis project. Southwestern provided a
30-day comment period as an opportunity for customers and other
interested members of the public to review and comment on the proposed
rate increase.
[[Page 64507]]
Southwestern did not hold the combined Public Information and Comment
Forum (Forum) because Southwestern did not receive any requests to hold
the Forum. Two comments were received, one from Brickfield Burchette
Ritts and Stone, PC, on behalf of the Sam Rayburn G&T Electric
Cooperative, Inc., which stated they had no objection to the proposed
rate adjustment. The other comment, on behalf of the Vinton Public
Power Authority, also stated no objection to the increased rate
proposal.
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, Williams Center
Tower I, One West Third Street, Tulsa, Oklahoma 74103. Following review
of Southwestern's proposal within the Department of Energy, I approved,
Rate Order No. SWPA-64, on an interim basis, which increases the
existing Robert Douglas Willis rate to $1,072,332 per year for the
period October 1, 2012 through September 30, 2016.
Dated: October 15, 2012.
Daniel Poneman,
Deputy Secretary.
UNITED STATES OF AMERICA DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
In the matter of: Southwestern Power Administration Robert D.
Willis Hydropower Project Rate )
Rate Order No. SWPA-64
ORDER CONFIRMING, APPROVING AND PLACING INCREASED POWER RATE SCHEDULE
IN EFFECT ON AN INTERIM BASIS (October 15, 2012)
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. 00-037.00, 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. The Deputy Secretary issued this
interim rate order pursuant to that delegation.
BACKGROUND
The Robert Douglas Willis Hydropower Project (Willis) (aka: Dam
B and later 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 stream flow 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 the Willis project 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 of hydropower at the Willis
project 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.
The Willis rate 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 maintenance 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.
FERC confirmation and approval of the current Willis rate
schedule was provided in FERC Docket No. EF08-4081-000 issued on
April 27, 2009, (127 FERC ] 62,072) effective for the period October
1, 2008, through September 30, 2012.
DISCUSSION
Southwestern prepared a 2012 Current Power Repayment Study (PRS)
which indicated that the existing rate would not satisfy present
financial criteria regarding repayment of investment within a 50-
year period due to increased U.S. Army Corps of Engineers (Corps)
investments, replacements and operations and maintenance expenses in
the hydroelectric generating facilities. The Revised PRS indicated
the need for a 15.4 percent revenue increase. These preliminary
results which presented the basis for the proposed revenue increase
were provided to the customers for their review prior to the formal
process.
The final 2012 Revised PRS indicates that an increase in annual
revenues of $142,944 (15.4 percent) is necessary beginning October
1, 2012, to accomplish repayment in the required number of years.
Accordingly, Southwestern has prepared a proposed rate schedule
based on the additional revenue requirement to ensure repayment.
Southwestern conducted the rate adjustment proceeding in
accordance with Title 10, Part 903, Subpart A of the Code of Federal
Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions.'' 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 notice published on July 10, 2012 (77 FR 40609). The
combined Public Information and Comment Forum scheduled for July 31,
2012, in Tulsa, Oklahoma was canceled because Southwestern did not
receive any requests that the forum be held. Southwestern provided
the Federal Register notice, together with any requested supporting
data, to the customer and interested parties for review and comment
during the public comment period. In response to concerns by
Southwestern's customers during an informal participation process
prior to the formal participation process, Southwestern is
increasing revenue in two steps over a two-year period. Since our
current rates are sufficient to recover all average operation and
maintenance expenses during the next two years, our ability to meet
both annual and long-term repayment criteria is satisfied by
increasing revenues in steps over the period.
The first step of the rate increase, beginning October 1, 2012,
would incorporate one half of the required revenue or 7.7 percent
($71,472). The second step of the rate increase, beginning October
1, 2013, and ending on September 30, 2016, would incorporate the
remaining one half of the revenue requirement ($71,472 or 7.7
percent). Southwestern will continue to perform its Power Repayment
Studies annually, and if the 2013 results should indicate the need
for additional revenues, another rate filing will be conducted and
updated revenue requirements implemented for FY 2013 and thereafter.
Following the conclusion of the comment period on August 9,
2012, Southwestern finalized the PRS and rate schedule for the
proposed annual rate of $1,072,332 which is the lowest possible rate
needed to satisfy repayment criteria. This rate represents an annual
increase of 15.4 percent. The Administrator made the decision to
submit the rate proposal for interim approval and implementation.
COMMENTS AND RESPONSES
Southwestern received two comments during the public comment
period. Both comments, one on behalf of the Sam Rayburn G&T Electric
Cooperative, Inc., the other on behalf of the Vinton Public Power
Authority, expressed no objection to the final proposed rate.
AVAILABILITY OF INFORMATION
Information regarding this rate increase, including studies,
comments and other supporting material, is available for public
review and comment in the offices of Southwestern Power
Administration, One West Third Street, Tulsa, OK 74103.
ADMINISTRATION'S CERTIFICATION
The 2012 Willis Revised PRS indicates that the increased power
rate of $1,072,332 will repay all costs of the project including
amortization of the power investment consistent with the provisions
of Department of Energy Order No. RA 6120.2. In accordance with
Delegation Order No. 00-
[[Page 64508]]
037.00 (December 6, 2001), and Section 5 of the Flood Control Act of
1944, the Administrator has determined that the proposed System
rates are consistent with applicable law and the lowest possible
rates 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 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 by the Secretary of Energy, I hereby confirm, approve and
place in effect on an interim basis, effective October 1, 2012
through September 30, 2016, the annual Robert Douglas Willis
Hydropower rate of $1,072,332 for the sale of power and energy from
the 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,
2016, or until the FERC confirms and approves the rate on a final
basis.
Dated: October 15, 2012.
Daniel Poneman,
Deputy Secretary.
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE RDW-12 \1\
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\1\ Supersedes Rate Schedule RDW-08
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WHOLESALE RATES FOR HYDRO POWER AND ENERGY SOLD TO SAM RAYBURN
MUNICIPAL POWER AGENCY
(CONTRACT NO. DE-PM75-85SW00117)
Effective:
During the period October 1, 2012, through September 30, 2016,
in accordance with interim approval from Rate Order No. SWPA-64
issued by the Deputy Secretary of Energy on October 15, 2012 and
pursuant to final approval by the Federal Energy Regulatory
Commission.
Applicable:
To the power and energy purchased by Sam Rayburn Municipal Power
Agency (SRMPA) from the Southwestern Power Administration
(Southwestern) under the terms and conditions of the Power Sales
Contract dated June 28, 1985, as amended, for the sale of all Hydro
Power and Energy generated at the Robert Douglas Willis Hydropower
Project (Robert D. Willis) (formerly designated as Town Bluff).
Character and Conditions of Service:
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage, at the point of delivery, and in such
quantities as are specified by contract.
1. Wholesale Rates, Terms, and Conditions for Hydro Power and Energy
1.1 These rates shall be applicable regardless of the quantity
of Hydro Power and Energy available or delivered to SRMPA; provided,
however, that if an Uncontrollable Force prevents utilization of
both of the project's power generating units for an entire billing
period, and if during such billing period water releases were being
made which otherwise would have been used to generate Hydro Power
and Energy, then Southwestern shall, upon request by SRMPA, suspend
billing for subsequent billing periods, until such time as at least
one of the project's generating units is again available.
1.2 The term ``Uncontrollable Force,'' as used herein, shall
mean any force which is not within the control of the party
affected, including, but not limited to, failure of water supply,
failure of facilities, flood, earthquake, storm, lightning, fire,
epidemic, riot, civil disturbance, labor disturbance, sabotage, war,
acts of war, terrorist acts, or restraint by court of general
jurisdiction, which by exercise of due diligence and foresight such
party could not reasonably have been expected to avoid.
1.3 Hydro Power Rates, Terms, and Conditions
1.3.1 Monthly Charge for the Period of October 1, 2012 through
September 30, 2013
$83,405 per month ($1,000,860 per year) for Robert D. Willis
Hydro Power and Energy purchased by SRMPA from October 1, 2012,
through September 30, 2013.
1.3.2 Monthly Charge for the Period of October 1, 2013 through
September 30, 2016
$89,361 per month ($1,072,332 per year) for Robert D. Willis
Hydro Power and Energy purchased by SRMPA from October 1, 2013,
through September 30, 2016.
[FR Doc. 2012-25905 Filed 10-19-12; 8:45 am]
BILLING CODE 6450-01-P
