Sam Rayburn Dam-Rate Order No. SWPA-84, 70627-70629 [2024-19564]
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Federal Register / Vol. 89, No. 169 / Friday, August 30, 2024 / Notices
Any person desiring to intervene, to
protest, or to answer a complaint in any
of the above proceedings must file in
accordance with Rules 211, 214, or 206
of the Commission’s Regulations (18
CFR 385.211, 385.214, or 385.206) on or
before 5:00 p.m. Eastern time on the
specified comment date. Protests may be
considered, but intervention is
necessary to become a party to the
proceeding.
The filings are accessible in the
Commission’s eLibrary system (https://
elibrary.ferc.gov/idmws/search/fercgen
search.asp) by querying the docket
number.
eFiling is encouraged. More detailed
information relating to filing
requirements, interventions, protests,
service, and qualifying facilities filings
can be found at: https://www.ferc.gov/
docs-filing/efiling/filing-req.pdf. For
other information, call (866) 208–3676
(toll free). For TTY, call (202) 502–8659.
The Commission’s Office of Public
Participation (OPP) supports meaningful
public engagement and participation in
Commission proceedings. OPP can help
members of the public, including
landowners, environmental justice
communities, Tribal members and
others, access publicly available
information and navigate Commission
processes. For public inquiries and
assistance with making filings such as
interventions, comments, or requests for
rehearing, the public is encouraged to
contact OPP at (202) 502–6595 or OPP@
ferc.gov.
Dated: August 23, 2024.
Debbie-Anne A. Reese,
Acting Secretary.
[FR Doc. 2024–19490 Filed 8–29–24; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Dated: August 23, 2024.
Debbie-Anne A. Reese,
Acting Secretary.
[Project No. 2327–000]
ddrumheller on DSK120RN23PROD with NOTICES1
section of the FPA. If the project’s prior
license waived the applicability of
section 15 of the FPA, then, based on
section 9(b) of the Administrative
Procedure Act, 5 U.S.C. 558(c), and as
set forth at 18 CFR 16.21(a), if the
licensee of such project has filed an
application for a subsequent license, the
licensee may continue to operate the
project in accordance with the terms
and conditions of the license after the
minor or minor part license expires,
until the Commission acts on its
application. If the licensee of such a
project has not filed an application for
a subsequent license, then it may be
required, pursuant to 18 CFR 16.21(b),
to continue project operations until the
Commission issues someone else a
license for the project or otherwise
orders disposition of the project.
If the project is subject to section 15
of the FPA, notice is hereby given that
an annual license for Project No. 2327
is issued to Great Lakes Hydro America,
LLC for a period effective August 1,
2024, through July 31, 2025, or until the
issuance of a new license for the project
or other disposition under the FPA,
whichever comes first.
If issuance of a new license (or other
disposition) does not take place on or
before July 31, 2025, notice is hereby
given that, pursuant to 18 CFR 16.18(c),
an annual license under section 15(a)(1)
of the FPA is renewed automatically
without further order or notice by the
Commission, unless the Commission
orders otherwise.
If the project is not subject to section
15 of the FPA, notice is hereby given
that Great Lakes Hydro America, LLC is
authorized to continue operation of the
Cascade Hydroelectric Project under the
terms and conditions of the prior license
until the issuance of a subsequent
license for the project or other
disposition under the FPA, whichever
comes first.
Great Lakes Hydro America, LLC;
Notice of Authorization for Continued
Project Operation
[FR Doc. 2024–19498 Filed 8–29–24; 8:45 am]
The license for the Cascade
Hydroelectric Project No. 2327 was
issued for a period ending June 1, 2024.
Section 15(a)(1) of the FPA, 16 U.S.C.
808(a)(1), requires the Commission, at
the expiration of a license term, to issue
from year-to-year an annual license to
the then licensee(s) under the terms and
conditions of the prior license until a
new license is issued, or the project is
otherwise disposed of as provided in
section 15 or any other applicable
DEPARTMENT OF ENERGY
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BILLING CODE 6717–01–P
Southwestern Power Administration
Sam Rayburn Dam—Rate Order No.
SWPA–84
Southwestern Power
Administration, DOE.
ACTION: Notice of rate order.
AGENCY:
The Administrator,
Southwestern Power Administration
SUMMARY:
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70627
(Southwestern), has confirmed,
approved and placed into effect on an
interim basis Rate Order No. SWPA–84
(Rate Order), which provides the rate
schedule Wholesale Rates for Hydro
Power and Energy at Sam Rayburn Dam
and Reservoir (SRD–23). This new rate
schedule for the Sam Rayburn Dam and
Reservoir (Rayburn) replaces the
existing power rate under Rate Schedule
SRD–15 which expires on September
30, 2024. Rate Schedule SRD–23
increases the annual wholesale power
rate for Rayburn by 21.1 percent.
DATES: The effective period for the rate
schedule specified in Rate Order No.
SWPA–84 is October 1, 2024, through
September 30, 2027, pending
confirmation and approval by the
Federal Energy Regulatory Commission
(FERC) on a final basis, or until
superseded.
FOR FURTHER INFORMATION CONTACT: Ms.
Fritha Ohlson, Senior Vice President,
Chief Operating Officer, Southwestern
Power Administration, (918) 595–6646
or fritha.ohlson@swpa.gov.
SUPPLEMENTARY INFORMATION: On June
30, 2016, FERC confirmed and approved
Rate Schedule SRD–15 under Rate
Order No. SWPA–69 on a final basis
through September 30, 2019. Rate
Schedule SRD–15 was subsequently
extended through September 30, 2024.
Southwestern published a Federal
Register notice (Proposed FRN) on
December 5, 2023 (87 FR 84318),
proposing to increase the annual rate by
approximately 21.10% from $4,563,792
to $5,526,588. The Proposed FRN also
initiated a 90-day public consultation
and comment period and set the date of
the public information and public
comment forum to be January 17, 2024.
No written comments were received and
there were no outstanding comments or
questions from the public information
and public comment forum.
Following review of the proposal,
Rate Order No. SWPA–84, which
provides the rate for the hydro power
and energy from Sam Rayburn Dam and
Reservoir, is hereby confirmed,
approved, and placed into effect on an
interim basis. Southwestern will submit
Rate Order No. SWPA–84 to FERC for
confirmation and approval on a final
basis.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ADMINISTRATOR, SOUTHWESTERN
POWER ADMINISTRATION
In the matter of: Southwestern Power
Administration, Sam Rayburn Dam
Rate Schedule, Rate Order No.
SWPA–84
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70628
Federal Register / Vol. 89, No. 169 / Friday, August 30, 2024 / Notices
Order Confirming, Approving, and
Placing the Sam Rayburn Dam Rate
Schedule in Effect on an Interim Basis
(8/26/2024)
Pursuant to Sections 301(b) and
302(a) of the Department of Energy
Organization Act, 42 U.S.C. 7151(b) and
7152(a), 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. S1–DEL–RATES–2016,
effective November 19, 2016, the
Secretary of Energy delegated: (1) the
authority to develop power and
transmission rates to Southwestern’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, or to remand
or disapprove such rates, to the Federal
Energy Regulatory Commission (FERC).
By Delegation Order No. S1–DEL–S3–
2023, effective April 10, 2023, the
Secretary of Energy also delegated the
authority to confirm, approve, and place
such rates into effect on an interim basis
to the Under Secretary for
Infrastructure. By Redelegation Order
No. S3–DEL–SWPA1–2023, effective
April 10, 2023, the Under Secretary for
Infrastructure redelegated the authority
to confirm, approve, and place such
rates into effect on an interim basis to
the Southwestern Administrator.
ddrumheller on DSK120RN23PROD with NOTICES1
Background
On December 17, 2015, in Rate Order
No. SWPA–69, the Deputy Secretary of
Energy placed into effect the current
Sam Rayburn Dam rate schedule (SRD–
15) on an interim basis for the period
January 1, 2016, to September 30, 2019.
FERC confirmed and approved SRD–15
on a final basis on June 30, 2016, for a
period ending September 30, 2019. On
September 22, 2019, in Rate Order No.
SWPA–75, the Assistant Secretary for
Electricity extended SRD–15 for two
years, for the period of October 1, 2019,
through September 30, 2021. On August
30, 2021, in Rate Order No. SWPA–78,
the Administrator, Southwestern,
extended SRD–15 for two years, for the
period of October 1, 2021, through
September 30, 2023. On September 20,
2023, in Rate Order No. SWPA–82, the
Administrator, Southwestern, extended
SRD–15 for one year, for the period of
October 1, 2023, through September 30,
2024, and FERC issued an ordering
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20:35 Aug 29, 2024
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accepting the extension on January 18,
2024.
Discussion
Southwestern’s current rate schedule
for the Sam Rayburn Dam isolated rate
system, SRD–15, is based on the 2015
Power Repayment Studies (PRS). Each
subsequent annual PRS through 2022
indicated the need for a revenue
adjustment within a plus or minus five
percent range of the current revenue
estimate. It is Southwestern’s practice
for the Administrator to defer, on a caseby-case basis, revenue adjustments for
isolated rate systems that are within
plus or minus five percent of the
revenue estimated from the current rate
schedule. Therefore, the Administrator
deferred revenue adjustments annually
for Sam Rayburn Dam through 2022.
Southwestern prepared a 2023 Current
PRS 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 operations and
maintenance expenses as well as
increase cost of replacements in the
hydroelectric generating facilities. The
2023 Revised PRS indicates the need for
an increase in annual revenues of
$962,796 (21.1 percent) is necessary, to
accomplish repayment in the required
number of years. Accordingly,
Southwestern has prepared a new
proposed rate schedule (SRD–23) 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
part 903), ‘‘Procedures for Public
Participation in Power and
Transmission Rate Adjustments and
Extensions.’’ Opportunities for public
review and comment during a 90-day
period on the proposed Sam Rayburn
Dam power rate were announced by a
Federal Register notice published on
December 5, 2023 (88 FR 84318), with
written comments due March 4, 2024. A
combined public information and
comment forum was held virtually on
January 17, 2024. Southwestern
published the Federal Register notice,
the proposed rate schedule, and the
draft 2023 PRS on its website for
customers and interested parties to
review and comment upon during the
public comment period.
Following the conclusion of the
comment period on March 4, 2024,
Southwestern finalized the Power
Repayment Studies and Rate Schedule
SRD–23 for the proposed annual rate of
$5,526,588 which is the lowest possible
rate needed to satisfy the repayment
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Sfmt 4703
criteria set forth within the provisions of
U.S. Department of Energy (DOE) Order
No. RA 6120.2. This rate represents an
annual increase of 21.1 percent. The
Administrator made the decision to
approve the rate proposal for
implementation.
Southwestern will continue to
perform its Power Repayment Studies
annually, and if the 2024 results should
indicate the need for additional
revenues, another rate adjustment
proceeding will be conducted to
implement the updated revenue
requirements.
Comments and Responses
Southwestern did not receive any
written comments during the 90-day
public review and comment period.
Southwestern did receive oral
comments from Mr. James Striedel of
GDS Associates, representing Sam
Rayburn Dam Electrical Cooperative,
Inc., during Southwestern’s January 17,
2024, public information and comment
forum which are summarized below.
The comments are also included
verbatim as part of the transcript of the
public comment forum which will be
submitted to FERC along with other
applicable documents for final
confirmation and approval of Rate
Schedule SRD–23.
Mr. Striedel was the only member of
the public who attended the public
comment forum. Mr. Striedel
commended Southwestern for its
diligence in managing costs and asked
three questions. First, Mr. Striedel asked
Southwestern to confirm that the power
repayment study (PRS) estimate of U.S.
Army Corps of Engineers (Corps)
operations and maintenance costs
includes an estimate of the reduction in
cost for centralized dispatch of Sam
Rayburn Dam. Southwestern confirmed
this in the affirmative. Second, Mr.
Striedel asked for confirmation that the
PRS does not include costs for
transformers that were gifted by
customers to the Corps. Southwestern
confirmed this in the affirmative.
Finally, Mr. Striedel asked for
confirmation that the PRS does not
include transmission cost from the
Blakely Mountain and DeGray projects
to the system of Southwestern.
Southwestern confirmed this in the
affirmative.
Availability of Information
Information regarding the rate
adjustment proceeding, including the
Final 2023 PRS and Rate Proposal, for
Rate Schedule SRD–23 is available for
public review in the offices of
Southwestern Power Administration,
Williams Tower I, One West Third
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Federal Register / Vol. 89, No. 169 / Friday, August 30, 2024 / Notices
Street Suite 1500, Tulsa, Oklahoma
74103. Rate Schedule SRD–23 is
available on Southwestern’s website at
www.energy.gov/swpa/rates-andrepayment.
Certification of Rates
I have certified that the provisional
rate under Rate Schedule SRD–23 is the
lowest possible rate consistent with
sound business principles. The rate was
developed following administrative
policies and applicable laws.
Ratemaking Procedure Requirements
Environmental Compliance
Southwestern has determined that
this action fits within the following
categorical exclusions listed in
appendix B to subpart D of 10 CFR
1021.410: B4.3 (Electric power
marketing rate changes). Categorically
excluded projects and activities do not
require preparation of either an
environmental impact statement or an
environmental assessment. A copy of
the categorical exclusion determination
is available on Southwestern’s website
at https://www.energy.gov/swpa/
southwestern-power-administration.
Determination Under Executive Order
12866
Southwestern 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.
ddrumheller on DSK120RN23PROD with NOTICES1
Submission to the Federal Energy
Regulatory Commission
Rate Schedule SRD–23 herein
confirmed, approved, and placed into
effect on an interim basis, together with
supporting documents, will be
submitted to FERC for confirmation and
final approval.
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, 2024,
Rate Schedule SRD–23, Wholesale Rates
for Hydro Power and Energy at Sam
Rayburn Dam and Reservoir. The rate
schedule shall remain in effect on a
temporary basis through September 30,
2027, or until the FERC confirms and
approves the rate on a final basis, or
until it is superseded by a subsequent
rate.
Signing Authority
This document of the Department of
Energy was signed on August 26, 2024,
by Michael S. Wech, Administrator for
Southwestern Power Administration,
VerDate Sep<11>2014
20:35 Aug 29, 2024
Jkt 262001
pursuant to delegated authority from the
Secretary of Energy. That document,
with the original signature and date, is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
DOE. This administrative process in no
way alters the legal effect of this
document upon publication in the
Federal Register.
Signed in Washington, DC, on August 27,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
UNITED STATES DEPARTMENT OF
ENERGY
SOUTHWESTERN POWER
ADMINISTRATION
Rate Schedule SRD–23 1
Wholesale Rates for Hydro Power and
Energy
At Sam Rayburn Dam and Reservoir
Effective
During the period October 1, 2024,
through September 30, 2027, in
accordance with interim approval from
Rate Order No. SWPA–84 issued by the
Administrator on October 1, 2024, and
pursuant to final approval by the
Federal Energy Regulatory Commission.
Applicable
To wholesale customers which have
contractual rights from Southwestern
Power Administration (Southwestern) to
purchase the Hydro Power and Energy
generated at the Sam Rayburn Dam and
Reservoir.
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. This rate shall be applicable
regardless of the quantity of Hydro
Power and Energy available or delivered
from the Sam Rayburn Dam and
Reservoir; 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
1 Supersedes
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Rate Schedule SRD–15
Fmt 4703
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70629
otherwise would have been used to
generate Hydro Power and Energy, then
Southwestern shall, upon request by the
customer(s), 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, 2024, through September
30, 2027
$460,549 per month ($5,526,588 per
year) for Sam Rayburn Dam Hydro
Power and Energy purchased from
October 1, 2024, through September 30,
2027.
[FR Doc. 2024–19564 Filed 8–29–24; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
Western Area Power
Administration, DOE.
ACTION: Notice concerning fiscal year
2025 base charge and rates for electric
service.
AGENCY:
The Deputy Secretary
confirms, approves, and places into
effect on a final basis the Western Area
Power Administration (WAPA) Desert
Southwest Region’s (DSW) fiscal year
(FY) 2025 base charge and rates for
Boulder Canyon Project (BCP) electric
service under Rate Schedule BCP–F11.
The FY 2025 base charge is unchanged
from FY 2024 and will remain at $74.3
million.
DATES: The FY 2025 base charge and
rates are effective October 1, 2024, and
will remain in effect through September
30, 2025.
FOR FURTHER INFORMATION CONTACT: Jack
D. Murray, Regional Manager, Desert
Southwest Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457, or Tina
Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power
SUMMARY:
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]]>Agencies
[Federal Register Volume 89, Number 169 (Friday, August 30, 2024)]
[Notices]
[Pages 70627-70629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19564]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam--Rate Order No. SWPA-84
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of rate order.
-----------------------------------------------------------------------
SUMMARY: The Administrator, Southwestern Power Administration
(Southwestern), has confirmed, approved and placed into effect on an
interim basis Rate Order No. SWPA-84 (Rate Order), which provides the
rate schedule Wholesale Rates for Hydro Power and Energy at Sam Rayburn
Dam and Reservoir (SRD-23). This new rate schedule for the Sam Rayburn
Dam and Reservoir (Rayburn) replaces the existing power rate under Rate
Schedule SRD-15 which expires on September 30, 2024. Rate Schedule SRD-
23 increases the annual wholesale power rate for Rayburn by 21.1
percent.
DATES: The effective period for the rate schedule specified in Rate
Order No. SWPA-84 is October 1, 2024, through September 30, 2027,
pending confirmation and approval by the Federal Energy Regulatory
Commission (FERC) on a final basis, or until superseded.
FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice
President, Chief Operating Officer, Southwestern Power Administration,
(918) 595-6646 or [email protected].
SUPPLEMENTARY INFORMATION: On June 30, 2016, FERC confirmed and
approved Rate Schedule SRD-15 under Rate Order No. SWPA-69 on a final
basis through September 30, 2019. Rate Schedule SRD-15 was subsequently
extended through September 30, 2024. Southwestern published a Federal
Register notice (Proposed FRN) on December 5, 2023 (87 FR 84318),
proposing to increase the annual rate by approximately 21.10% from
$4,563,792 to $5,526,588. The Proposed FRN also initiated a 90-day
public consultation and comment period and set the date of the public
information and public comment forum to be January 17, 2024. No written
comments were received and there were no outstanding comments or
questions from the public information and public comment forum.
Following review of the proposal, Rate Order No. SWPA-84, which
provides the rate for the hydro power and energy from Sam Rayburn Dam
and Reservoir, is hereby confirmed, approved, and placed into effect on
an interim basis. Southwestern will submit Rate Order No. SWPA-84 to
FERC for confirmation and approval on a final basis.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ADMINISTRATOR, SOUTHWESTERN POWER ADMINISTRATION
In the matter of: Southwestern Power Administration, Sam Rayburn Dam
Rate Schedule, Rate Order No. SWPA-84
[[Page 70628]]
Order Confirming, Approving, and Placing the Sam Rayburn Dam Rate
Schedule in Effect on an Interim Basis (8/26/2024)
Pursuant to Sections 301(b) and 302(a) of the Department of Energy
Organization Act, 42 U.S.C. 7151(b) and 7152(a), 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. S1-
DEL-RATES-2016, effective November 19, 2016, the Secretary of Energy
delegated: (1) the authority to develop power and transmission rates to
Southwestern'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, or to remand or disapprove such
rates, to the Federal Energy Regulatory Commission (FERC). By
Delegation Order No. S1-DEL-S3-2023, effective April 10, 2023, the
Secretary of Energy also delegated the authority to confirm, approve,
and place such rates into effect on an interim basis to the Under
Secretary for Infrastructure. By Redelegation Order No. S3-DEL-SWPA1-
2023, effective April 10, 2023, the Under Secretary for Infrastructure
redelegated the authority to confirm, approve, and place such rates
into effect on an interim basis to the Southwestern Administrator.
Background
On December 17, 2015, in Rate Order No. SWPA-69, the Deputy
Secretary of Energy placed into effect the current Sam Rayburn Dam rate
schedule (SRD-15) on an interim basis for the period January 1, 2016,
to September 30, 2019. FERC confirmed and approved SRD-15 on a final
basis on June 30, 2016, for a period ending September 30, 2019. On
September 22, 2019, in Rate Order No. SWPA-75, the Assistant Secretary
for Electricity extended SRD-15 for two years, for the period of
October 1, 2019, through September 30, 2021. On August 30, 2021, in
Rate Order No. SWPA-78, the Administrator, Southwestern, extended SRD-
15 for two years, for the period of October 1, 2021, through September
30, 2023. On September 20, 2023, in Rate Order No. SWPA-82, the
Administrator, Southwestern, extended SRD-15 for one year, for the
period of October 1, 2023, through September 30, 2024, and FERC issued
an ordering accepting the extension on January 18, 2024.
Discussion
Southwestern's current rate schedule for the Sam Rayburn Dam
isolated rate system, SRD-15, is based on the 2015 Power Repayment
Studies (PRS). Each subsequent annual PRS through 2022 indicated the
need for a revenue adjustment within a plus or minus five percent range
of the current revenue estimate. It is Southwestern's practice for the
Administrator to defer, on a case-by-case basis, revenue adjustments
for isolated rate systems that are within plus or minus five percent of
the revenue estimated from the current rate schedule. Therefore, the
Administrator deferred revenue adjustments annually for Sam Rayburn Dam
through 2022. Southwestern prepared a 2023 Current PRS 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 operations and maintenance expenses as well as increase
cost of replacements in the hydroelectric generating facilities. The
2023 Revised PRS indicates the need for an increase in annual revenues
of $962,796 (21.1 percent) is necessary, to accomplish repayment in the
required number of years. Accordingly, Southwestern has prepared a new
proposed rate schedule (SRD-23) 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 part 903), ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions.'' Opportunities for
public review and comment during a 90-day period on the proposed Sam
Rayburn Dam power rate were announced by a Federal Register notice
published on December 5, 2023 (88 FR 84318), with written comments due
March 4, 2024. A combined public information and comment forum was held
virtually on January 17, 2024. Southwestern published the Federal
Register notice, the proposed rate schedule, and the draft 2023 PRS on
its website for customers and interested parties to review and comment
upon during the public comment period.
Following the conclusion of the comment period on March 4, 2024,
Southwestern finalized the Power Repayment Studies and Rate Schedule
SRD-23 for the proposed annual rate of $5,526,588 which is the lowest
possible rate needed to satisfy the repayment criteria set forth within
the provisions of U.S. Department of Energy (DOE) Order No. RA 6120.2.
This rate represents an annual increase of 21.1 percent. The
Administrator made the decision to approve the rate proposal for
implementation.
Southwestern will continue to perform its Power Repayment Studies
annually, and if the 2024 results should indicate the need for
additional revenues, another rate adjustment proceeding will be
conducted to implement the updated revenue requirements.
Comments and Responses
Southwestern did not receive any written comments during the 90-day
public review and comment period. Southwestern did receive oral
comments from Mr. James Striedel of GDS Associates, representing Sam
Rayburn Dam Electrical Cooperative, Inc., during Southwestern's January
17, 2024, public information and comment forum which are summarized
below. The comments are also included verbatim as part of the
transcript of the public comment forum which will be submitted to FERC
along with other applicable documents for final confirmation and
approval of Rate Schedule SRD-23.
Mr. Striedel was the only member of the public who attended the
public comment forum. Mr. Striedel commended Southwestern for its
diligence in managing costs and asked three questions. First, Mr.
Striedel asked Southwestern to confirm that the power repayment study
(PRS) estimate of U.S. Army Corps of Engineers (Corps) operations and
maintenance costs includes an estimate of the reduction in cost for
centralized dispatch of Sam Rayburn Dam. Southwestern confirmed this in
the affirmative. Second, Mr. Striedel asked for confirmation that the
PRS does not include costs for transformers that were gifted by
customers to the Corps. Southwestern confirmed this in the affirmative.
Finally, Mr. Striedel asked for confirmation that the PRS does not
include transmission cost from the Blakely Mountain and DeGray projects
to the system of Southwestern. Southwestern confirmed this in the
affirmative.
Availability of Information
Information regarding the rate adjustment proceeding, including the
Final 2023 PRS and Rate Proposal, for Rate Schedule SRD-23 is available
for public review in the offices of Southwestern Power Administration,
Williams Tower I, One West Third
[[Page 70629]]
Street Suite 1500, Tulsa, Oklahoma 74103. Rate Schedule SRD-23 is
available on Southwestern's website at www.energy.gov/swpa/rates-and-repayment.
Certification of Rates
I have certified that the provisional rate under Rate Schedule SRD-
23 is the lowest possible rate consistent with sound business
principles. The rate was developed following administrative policies
and applicable laws.
Ratemaking Procedure Requirements
Environmental Compliance
Southwestern has determined that this action fits within the
following categorical exclusions listed in appendix B to subpart D of
10 CFR 1021.410: B4.3 (Electric power marketing rate changes).
Categorically excluded projects and activities do not require
preparation of either an environmental impact statement or an
environmental assessment. A copy of the categorical exclusion
determination is available on Southwestern's website at https://www.energy.gov/swpa/southwestern-power-administration.
Determination Under Executive Order 12866
Southwestern 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 the Federal Energy Regulatory Commission
Rate Schedule SRD-23 herein confirmed, approved, and placed into
effect on an interim basis, together with supporting documents, will be
submitted to FERC for confirmation and final approval.
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, 2024, Rate Schedule
SRD-23, Wholesale Rates for Hydro Power and Energy at Sam Rayburn Dam
and Reservoir. The rate schedule shall remain in effect on a temporary
basis through September 30, 2027, or until the FERC confirms and
approves the rate on a final basis, or until it is superseded by a
subsequent rate.
Signing Authority
This document of the Department of Energy was signed on August 26,
2024, by Michael S. Wech, Administrator for Southwestern Power
Administration, pursuant to delegated authority from the Secretary of
Energy. That document, with the original signature and date, is
maintained by DOE. For administrative purposes only, and in compliance
with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of DOE. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on August 27, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
Rate Schedule SRD-23 1
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\1\ Supersedes Rate Schedule SRD-15
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Wholesale Rates for Hydro Power and Energy
At Sam Rayburn Dam and Reservoir
Effective
During the period October 1, 2024, through September 30, 2027, in
accordance with interim approval from Rate Order No. SWPA-84 issued by
the Administrator on October 1, 2024, and pursuant to final approval by
the Federal Energy Regulatory Commission.
Applicable
To wholesale customers which have contractual rights from
Southwestern Power Administration (Southwestern) to purchase the Hydro
Power and Energy generated at the Sam Rayburn Dam and Reservoir.
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. This rate shall be applicable regardless of the quantity of
Hydro Power and Energy available or delivered from the Sam Rayburn Dam
and Reservoir; 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 the customer(s), 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, 2024, through
September 30, 2027
$460,549 per month ($5,526,588 per year) for Sam Rayburn Dam Hydro
Power and Energy purchased from October 1, 2024, through September 30,
2027.
[FR Doc. 2024-19564 Filed 8-29-24; 8:45 am]
BILLING CODE 6450-01-P
