Robert D. Willis Hydropower Power Rate, 73294-73296 [2014-28915]
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Federal Register / Vol. 79, No. 237 / Wednesday, December 10, 2014 / Notices
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Dated: December 4, 2014.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014–28948 Filed 12–9–14; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Southwestern Power Administration
Robert D. Willis Hydropower Power
Rate
Southwestern Power
Administration, DOE.
ACTION: Notice of Rate Order.
AGENCY:
Pursuant to Delegation Order
Nos. 00–037.00A, effective October 25,
2013, and 00–001.0OE, effective June 6,
2013, the Deputy Secretary has
approved and placed into effect on an
interim basis Rate Order No. SWPA–68,
which increases the power rate for the
Robert D. 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–68 is January 1, 2015, through
September 30, 2018.
FOR FURTHER INFORMATION CONTACT: Mr.
Marshall Boyken, Acting Vice President,
Chief Operating Office, Southwestern
Power Administration, Department of
Energy, Williams Center Tower I, One
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SUMMARY:
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17:48 Dec 09, 2014
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West Third Street, Tulsa, Oklahoma
74103, (918) 595–6646,
marshall.boyken@swpa.gov.
SUPPLEMENTARY INFORMATION: Rate Order
No. SWPA–68, 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–14, 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–12, Wholesale Rates for
Hydro Power and Energy Sold to Sam
Rayburn Municipal Power Agency
(Contract No. DE–PM75–85SW00117)
(superseded by RDW–14)
Southwestern Power Administration’s
(Southwestern) Administrator has
determined, based on the 2014 Willis
Current Power Repayment Study, that
the existing power rate will not satisfy
cost recovery criteria specified in DOE
Order No. RA 6120.2 and Section 5 of
the Flood Control Act of 1944. The
finalized 2014 Willis Power Repayment
Studies indicate that an increase in
annual revenue of $109,164, or 10.2
percent, beginning January 1, 2015, will
satisfy cost recovery criteria for the
Willis project. The proposed Willis rate
schedule would ultimately increase
annual revenues from $1,072,323 to
$1,181,496, 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 with one half (5.1 percent)
beginning January 1, 2015, and the
remaining one half (5.1 percent)
beginning on October 1, 2015.
The Administrator has followed title
10, part 903 subpart A, of the Code of
Federal Regulations (10 CFR part 903),
‘‘Procedures for Public Participation in
Power and Transmission Rate
Adjustments and Extensions’’ in
connection with the proposed rate
schedule. On September 4, 2014,
Southwestern published a notice in the
Federal Register, (79 FR 52646), of the
proposed power 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
power rate increase with written
comments due by October 20, 2014.
Southwestern did not hold the
combined Public Information and
Comment Forum (Forum) because
Southwestern did not receive any
requests to hold the Forum. One
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Sfmt 4703
comment was received from Gillis,
Borchardt & Barthel LLP, on behalf of
the Vinton Public Power Authority and
the Sam Rayburn Generation and
Transmission Cooperative which stated
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, 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–68, on an interim
basis, which ultimately increases the
existing revenue requirement for the
Willis power rate to $1,181,496 per year
for the period January 1, 2015 through
September 30, 2018.
Dated: December 4, 2014.
Elizabeth Sherwood-Randall,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
Rate Order No. SWPA–68
In the matter of:
Southwestern Power Administration
Robert D. Willis Hydropower Project
Power 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. 00–037.00A, 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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Federal Register / Vol. 79, No. 237 / Wednesday, December 10, 2014 / Notices
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 power 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 power 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. EF13–1–
000 issued on April 29, 2013, (143 FERC
¶62,067) effective for the period October
1, 2012, through September 30, 2016.
mstockstill on DSK4VPTVN1PROD with NOTICES
DISCUSSION
Southwestern prepared a 2014
Current Power Repayment Study which
indicated that the existing power rate
would not satisfy present financial
criteria regarding repayment of
investment within a 50-year period due
to increased Corps investments,
replacements and operations and
maintenance expenses in the
hydroelectric generating facilities. The
Revised Power Repayment Study
indicated the need for a 10.2 percent
revenue increase. These preliminary
results which presented the basis for the
proposed revenue increase were
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17:48 Dec 09, 2014
Jkt 235001
provided to the customers for their
review prior to the formal process.
The final 2014 Revised Power
Repayment Study indicates that an
increase in annual revenues of $109,164
(10.2 percent) is necessary beginning
January 1, 2015, 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 (10 CFR
903), ‘‘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 September 4, 2014 (79 FR
52646), with written comments due
October 20, 2014. The combined Public
Information and Comment Forum
scheduled for October 8, 2014, in Tulsa,
Oklahoma was not held because
Southwestern did not receive any
requests to hold the forum.
Southwestern provided the Federal
Register notice, to the customer and
interested parties for review and
comment during the public comment
period. In response to concerns by
Southwestern’s customers during their
review of the preliminary results of the
2014 Power Repayment Studies prior to
the formal public participation process,
Southwestern is increasing revenue in
two steps over a ten month period.
Since our current power rate is
sufficient to recover all average
operation and maintenance expenses
during the next ten months, 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 January 1, 2015, would
incorporate one half of the required
revenue increase ($54,582 or 5.1
percent). The second step of the rate
increase, beginning October 1, 2015, and
ending on September 30, 2018, would
incorporate the remaining one half of
the revenue increase requirement
($54,582 or 5.1 percent). Southwestern
will continue to perform its Power
Repayment Studies annually, and if the
2015 results should indicate the need
for additional revenues, another rate
filing will be conducted and updated
revenue requirements implemented for
Fiscal Year 2016 and thereafter.
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73295
Following the conclusion of the
comment period on October 20, 2014,
Southwestern finalized the Power
Repayment Studies and rate schedule
for the proposed annual revenue
requirement of $1,181,496 which is the
lowest possible rate needed to satisfy
repayment criteria. This rate represents
an increase to the annual revenue
requirement of 10.2 percent. The
Administrator made the decision to
submit the rate proposal for interim
approval and implementation.
COMMENTS AND RESPONSES
Southwestern received one comment
during the public comment period. The
comment on behalf of the Vinton Public
Power Authority and the Sam Rayburn
Generation and Transmission
Cooperative expressed no objection to
the proposed rate increase.
AVAILABILITY OF INFORMATION
Information regarding this power rate
increase, including studies, comments
and other supporting material, is
available for public review in the offices
of Southwestern Power Administration,
One West Third Street, Tulsa, OK
74103.
ADMINISTRATION’S CERTIFICATION
The 2014 Willis Revised Power
Repayment Study indicates that the
increased revenue requirement of
$1,181,496 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. 00–037.00A
(October 25, 2013), 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 is the lowest
possible rate to the customer consistent
with sound business principles.
ENVIRONMENT
The environmental impact of the
power rate increase proposal was
evaluated in consideration of the
Department of Energy’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
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73296
Federal Register / Vol. 79, No. 237 / Wednesday, December 10, 2014 / Notices
interim basis, effective January 1, 2015
through September 30, 2018, the Willis
power rate designed to collect
$1,181,496 annually for the sale of
power and energy from the 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, 2018, or
until the FERC confirms and approves
the rate on a final basis.
Dated: December 4, 2014
Elizabeth Sherwood-Randall
Deputy Secretary
UNITED STATES DEPARTMENT OF
ENERGY
SOUTHWESTERN POWER
ADMINISTRATION
RATE SCHEDULE RDW–14 1
WHOLESALE RATES FOR HYDRO
POWER AND ENERGY
SOLD TO SAM RAYBURN
MUNICIPAL POWER AGENCY
(CONTRACT NO. DE–PM75–
85SW00117)
Effective:
During the period January 1, 2015,
through September 30, 2018, in
accordance with interim approval from
Rate Order No. SWPA–68 issued by the
Deputy Secretary of Energy on
December 4, 2014 and pursuant to final
approval by the Federal Energy
Regulatory Commission.
mstockstill on DSK4VPTVN1PROD with NOTICES
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
1 Supersedes
VerDate Sep<11>2014
Rate Schedule RDW–12
17:48 Dec 09, 2014
Jkt 235001
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 January 1, 2015 through
September 30, 2015
$83,405 per month ($1,000,860 per
year) for Robert D. Willis Hydro
Power and Energy purchased by
SRMPA from January 1, 2015,
through September 30, 2015.
1.3.2. Monthly Charge for the Period
of October 1, 2015 through
September 30, 2018
$98,458 per month ($1,181,496 per
year) for Robert D. Willis Hydro
Power and Energy purchased by
SRMPA from October 1, 2015,
through September 30, 2018.
[FR Doc. 2014–28915 Filed 12–9–14; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OPPT–2003–0004; FRL–9919–25]
Access to Confidential Business
Information by Consultants to T.A.
Consulting, Inc.
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
EPA has authorized
consultants, Warren Muir and John
Young of contractor T.A. Consulting,
Inc. of Virginia Beach, VA, to access
information which has been submitted
to EPA under all sections of the Toxic
Substances Control Act (TSCA). Some of
SUMMARY:
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Frm 00020
Fmt 4703
Sfmt 4703
the information may be claimed or
determined to be Confidential Business
Information (CBI).
DATES: Access to the confidential data
will occur on or about November 12,
2014.
FOR FURTHER INFORMATION CONTACT:
For technical information contact:
Scott M. Sherlock, Environmental
Assistance Division (7408M), Office of
Pollution Prevention and Toxics,
Environmental Protection Agency, 1200
Pennsylvania Ave. NW., Washington,
DC 20460–0001; telephone number:
(202) 564–8257; email address:
sherlock.scott@epa.gov.
For general information contact: The
TSCA-Hotline, ABVI-Goodwill, 422
South Clinton Ave., Rochester, NY
14620; telephone number: (202) 554–
1404; email address: TSCA-Hotline@
epa.gov.
SUPPLEMENTARY INFORMATION:
I. General Information
A. Does this action apply to me?
This action is directed to the public
in general. This action may, however, be
of interest to all who manufacture,
process, or distribute industrial
chemicals. Since other entities may also
be interested, the Agency has not
attempted to describe all the specific
entities that may be affected by this
action.
B. How can I get copies of this document
and other related information?
The docket for this action, identified
by docket identification (ID) number
EPA–HQ–OPPT–2003–0004, is available
at https://www.regulations.gov or at the
Office of Pollution Prevention and
Toxics Docket (OPPT Docket),
Environmental Protection Agency
Docket Center (EPA/DC), West William
Jefferson Clinton Bldg., Rm. 3334, 1301
Constitution Ave. NW., Washington,
DC. The 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
Public Reading Room is (202) 566–1744,
and the telephone number for the OPPT
Docket is (202) 566–0280. Please review
the visitor instructions and additional
information about the docket available
at https://www.epa.gov/dockets.
II. What action is the Agency taking?
Under contract number GS–10F–
0261M, project number EPA DOI–FCG
FY2014–26 accessed by EPA through an
Interagency Agreement with the U.S.
Department of Interior (IAG No.
95773601–C), consultants Warren Muir
and John Young of contractor T.A.
E:\FR\FM\10DEN1.SGM
10DEN1
]]>Agencies
[Federal Register Volume 79, Number 237 (Wednesday, December 10, 2014)]
[Notices]
[Pages 73294-73296]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28915]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Robert D. Willis Hydropower Power Rate
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
-----------------------------------------------------------------------
SUMMARY: Pursuant to Delegation Order Nos. 00-037.00A, effective
October 25, 2013, and 00-001.0OE, effective June 6, 2013, the Deputy
Secretary has approved and placed into effect on an interim basis Rate
Order No. SWPA-68, which increases the power rate for the Robert D.
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-68 is January 1, 2015, through September 30, 2018.
FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Acting Vice
President, Chief Operating Office, Southwestern Power Administration,
Department of Energy, Williams Center Tower I, One West Third Street,
Tulsa, Oklahoma 74103, (918) 595-6646, marshall.boyken@swpa.gov.
SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-68, 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-14, 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-12, Wholesale Rates for Hydro Power and Energy
Sold to Sam Rayburn Municipal Power Agency (Contract No. DE-PM75-
85SW00117) (superseded by RDW-14)
Southwestern Power Administration's (Southwestern) Administrator has
determined, based on the 2014 Willis Current Power Repayment Study,
that the existing power rate will not satisfy cost recovery criteria
specified in DOE Order No. RA 6120.2 and Section 5 of the Flood Control
Act of 1944. The finalized 2014 Willis Power Repayment Studies indicate
that an increase in annual revenue of $109,164, or 10.2 percent,
beginning January 1, 2015, will satisfy cost recovery criteria for the
Willis project. The proposed Willis rate schedule would ultimately
increase annual revenues from $1,072,323 to $1,181,496, 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 with one half (5.1 percent) beginning
January 1, 2015, and the remaining one half (5.1 percent) beginning on
October 1, 2015.
The Administrator has followed title 10, part 903 subpart A, of the
Code of Federal Regulations (10 CFR part 903), ``Procedures for Public
Participation in Power and Transmission Rate Adjustments and
Extensions'' in connection with the proposed rate schedule. On
September 4, 2014, Southwestern published a notice in the Federal
Register, (79 FR 52646), of the proposed power 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 power rate increase with written
comments due by October 20, 2014. Southwestern did not hold the
combined Public Information and Comment Forum (Forum) because
Southwestern did not receive any requests to hold the Forum. One
comment was received from Gillis, Borchardt & Barthel LLP, on behalf of
the Vinton Public Power Authority and the Sam Rayburn Generation and
Transmission Cooperative which stated 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, 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-68, on an interim basis, which ultimately increases
the existing revenue requirement for the Willis power rate to
$1,181,496 per year for the period January 1, 2015 through September
30, 2018.
Dated: December 4, 2014.
Elizabeth Sherwood-Randall,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
Rate Order No. SWPA-68
In the matter of:
Southwestern Power Administration
Robert D. Willis Hydropower Project Power 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. 00-037.00A, 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.
[[Page 73295]]
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 power 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 power 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. EF13-1-000 issued on April 29, 2013,
(143 FERC ]62,067) effective for the period October 1, 2012, through
September 30, 2016.
DISCUSSION
Southwestern prepared a 2014 Current Power Repayment Study which
indicated that the existing power rate would not satisfy present
financial criteria regarding repayment of investment within a 50-year
period due to increased Corps investments, replacements and operations
and maintenance expenses in the hydroelectric generating facilities.
The Revised Power Repayment Study indicated the need for a 10.2 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 2014 Revised Power Repayment Study indicates that an
increase in annual revenues of $109,164 (10.2 percent) is necessary
beginning January 1, 2015, 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
(10 CFR 903), ``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 September 4, 2014 (79 FR 52646), with written
comments due October 20, 2014. The combined Public Information and
Comment Forum scheduled for October 8, 2014, in Tulsa, Oklahoma was not
held because Southwestern did not receive any requests to hold the
forum. Southwestern provided the Federal Register notice, to the
customer and interested parties for review and comment during the
public comment period. In response to concerns by Southwestern's
customers during their review of the preliminary results of the 2014
Power Repayment Studies prior to the formal public participation
process, Southwestern is increasing revenue in two steps over a ten
month period. Since our current power rate is sufficient to recover all
average operation and maintenance expenses during the next ten months,
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 January 1, 2015,
would incorporate one half of the required revenue increase ($54,582 or
5.1 percent). The second step of the rate increase, beginning October
1, 2015, and ending on September 30, 2018, would incorporate the
remaining one half of the revenue increase requirement ($54,582 or 5.1
percent). Southwestern will continue to perform its Power Repayment
Studies annually, and if the 2015 results should indicate the need for
additional revenues, another rate filing will be conducted and updated
revenue requirements implemented for Fiscal Year 2016 and thereafter.
Following the conclusion of the comment period on October 20, 2014,
Southwestern finalized the Power Repayment Studies and rate schedule
for the proposed annual revenue requirement of $1,181,496 which is the
lowest possible rate needed to satisfy repayment criteria. This rate
represents an increase to the annual revenue requirement of 10.2
percent. The Administrator made the decision to submit the rate
proposal for interim approval and implementation.
COMMENTS AND RESPONSES
Southwestern received one comment during the public comment period.
The comment on behalf of the Vinton Public Power Authority and the Sam
Rayburn Generation and Transmission Cooperative expressed no objection
to the proposed rate increase.
AVAILABILITY OF INFORMATION
Information regarding this power rate increase, including studies,
comments and other supporting material, is available for public review
in the offices of Southwestern Power Administration, One West Third
Street, Tulsa, OK 74103.
ADMINISTRATION'S CERTIFICATION
The 2014 Willis Revised Power Repayment Study indicates that the
increased revenue requirement of $1,181,496 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. 00-037.00A (October 25, 2013), 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 is the lowest possible rate to the customer
consistent with sound business principles.
ENVIRONMENT
The environmental impact of the power rate increase proposal was
evaluated in consideration of the Department of Energy'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
[[Page 73296]]
interim basis, effective January 1, 2015 through September 30, 2018,
the Willis power rate designed to collect $1,181,496 annually for the
sale of power and energy from the 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, 2018, or until the FERC confirms and approves the rate on
a final basis.
Dated: December 4, 2014
Elizabeth Sherwood-Randall
Deputy Secretary
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE RDW-14 \1\
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\1\ Supersedes Rate Schedule RDW-12
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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 January 1, 2015, through September 30, 2018, in
accordance with interim approval from Rate Order No. SWPA-68 issued by
the Deputy Secretary of Energy on December 4, 2014 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 January 1, 2015 through
September 30, 2015
$83,405 per month ($1,000,860 per year) for Robert D. Willis Hydro
Power and Energy purchased by SRMPA from January 1, 2015, through
September 30, 2015.
1.3.2. Monthly Charge for the Period of October 1, 2015 through
September 30, 2018
$98,458 per month ($1,181,496 per year) for Robert D. Willis Hydro
Power and Energy purchased by SRMPA from October 1, 2015, through
September 30, 2018.
[FR Doc. 2014-28915 Filed 12-9-14; 8:45 am]
BILLING CODE 6450-01-P
