Western Area Power Administration June 2005 – Federal Register Recent Federal Regulation Documents

The Western Area Power Administration (Western) is proposing an adjustment for its Regulation and Frequency Response Service (Regulation) rate. The current rate, Rate Schedule No. L-AS3, will expire February 28, 2009. Western is undertaking this rate adjustment in response to anticipated load and resource growth and the corresponding impact on the Western Area Colorado Missouri (WACM) Balancing Authority (WACM Balancing Authority). Prior to April 1, 2005, the WACM Balancing Authority was known as the WACM Control Area. This proposed rate adjustment will ensure that users of Regulation service within the WACM Balancing Authority are appropriately assessed for their Regulation usage and that sufficient revenue is collected to cover provision of the service. Publication of this Federal Register notice begins the formal process for the proposed rate adjustment.

The Western Area Power Administration (Western) is proposing revised rates for Loveland Area Projects (LAP) firm electric service. LAP consists of the Fryingpan-Arkansas Project and the Pick-Sloan Missouri Basin ProgramWestern Division, which were integrated for marketing and rate-making purposes in 1989. Current rates, under Rate Schedule L-F5, expire on December 31, 2008, but are not sufficient to meet the LAP revenue requirements. Proposed rates will provide sufficient revenue to pay all annual costs, including interest expense, and repay required investment within the allowable period. Western will prepare a brochure that provides detailed information on the rates to all interested parties. Proposed rates, under Rate Schedule L-F6, are scheduled to go into effect on January 1, 2006, and will remain in effect through December 31, 2010. Publication of this Federal Register notice begins the formal process for the proposed rate adjustment.