Parker-Davis Project-Rate Order No. WAPA-138
The Western Area Power Administration (Western) is proposing modifications to the rate methodology used to develop Parker-Davis Project (P-DP) firm electric and transmission service formula rates. The modifications to the rate methodology will change the allocation factors used to apportion certain expenses between generation and transmission revenue requirements. The firm electric and transmission service rates resulting from the rate methodology modifications are equal to current rates and will provide sufficient revenue to pay all annual costs, including interest expense, and repayment of required investment within the allowable period. Western is also proposing changes to the current billing practices for P-DP long-term firm transmission service. Under the proposed billing changes, customers will be required to pay for long-term firm transmission service one month in advance of service. Western will prepare a brochure that provides detailed information on the modifications and proposed firm electric and transmission service formula rates. Current formula rates under Rate Schedules PD-F6, PD-FT6, PD-FCT6, and PD-NFT6 expire September 30, 2008. The proposed formula rates under Rate Schedules PD- F7, PD-FT7, PD-FCT7, and PD-NFT7 are scheduled to become effective on October 1, 2008, and will remain in effect through September 30, 2013. Publication of this Federal Register notice begins the formal process for the proposed formula rates.