Subject: Boulder Canyon Project
[Federal Register: February 27, 2002 (Volume 67, Number 39)]
[Notices]
[Page 8964-8965]
>From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27fe02-83]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed base charge and rates adjustment.
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SUMMARY: The Western Area Power Administration (Western) is proposing
an adjustment to the Boulder Canyon Project (BCP) firm power base
charge and rates. The current base charge and rates expire September
30, 2002. The current base charge is not sufficient to pay all annual
costs including operation, maintenance, replacement, and interest
expenses, and to repay investment obligations within the required
period. The proposed base charge will provide sufficient revenue to pay
all annual costs, including operation, maintenance, replacement, and
interest expenses, and to repay investment obligations within the
allowable period. A detailed rate package that identifies the reasons
for the base charge and rates adjustment will be available in March
2002. The proposed base charge and rates are scheduled to become
effective on October 1, 2002, the beginning of Federal fiscal year (FY)
2003, and will remain in effect through September 30, 2003. This
Federal Register notice initiates the formal process for the proposed
base charge and rates.
DATES: The consultation and comment period will begin today and will
end May 28, 2002. Western representatives will explain the proposed
base charge and rates at a public information forum on April 4, 2002,
beginning at 10 a.m. MST, Phoenix, AZ. Interested parties can provide
oral and written comments at a public comment forum on April 25, 2002,
beginning at 10 a.m. MST, at the same location.
ADDRESSES: The meetings will be held at the Desert Southwest Customer
Service Regional Office 615 South 43rd Avenue, Phoenix, Arizona. If you
are interested in sending comments, address them to: Mr. J. Tyler
Carlson, Regional Manager, Desert Southwest Customer Service Region,
Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-
6457, e-mail: carlson@wapa.gov. Comments must be received by Western by
the end of the consultation and comment period to be assured
consideration.
FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead,
Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, telephone (602)
352-2768, e-mail: nasir@wapa.gov.
SUPPLEMENTARY INFORMATION:
Proposed Base Charge and Rates for BCP Firm Power
The proposed base charge and rates for BCP firm power service are
designed to recover an annual revenue requirement that includes the
investment repayment, interest, operation and maintenance,
replacements, payment to states, visitor services, and uprating
payments. These annual costs are reduced by the projected revenue from
water sales, visitor services, water pump energy sales, facility use
charges, regulation services, miscellaneous leases, late fees, and the
prior year carryover to determine the annual revenue requirement. The
projected annual revenue requirement is the base charge for firm power
service and is divided equally between capacity dollars and energy
dollars. Annual energy dollars are divided by annual energy sales, and
annual capacity dollars are divided by annual capacity sales to
determine the proposed energy rate and the proposed capacity rate.
The Deputy Secretary of the Department of Energy (DOE) approved the
existing rate formula for calculating the base charge and rates in Rate
Schedule BCP-F6 for BCP firm power service on August 29, 2001, (Rate
Order No. WAPA-94, October 13, 2000). The Federal Energy Regulatory
Commission (FERC) confirmed and approved the rate formula on a final
basis in Docket No. EF00-5092-000 issued July 31, 2001. Rate Schedule
BCP-F6 became effective on October 1, 2000, for the period ending
September 30, 2005. Under Rate Schedule BCP-F6, for FY 2002, the base
charge is $48,039,988, the forecasted energy rate is 5.33 mills per
kilowatthour (mills/kWh) and the forecasted capacity rate is $0.99 per
kilowattmonth (kWmonth). The composite rate is 10.32 mills/kWh.
The FY 2003 proposed base charge is $58,993,730, the forecasted
energy rate is 6.22 mills/kWh, and the forecasted capacity rate is
$1.26/kWmonth. The proposed composite rate is 12.44 mills/kWh. This is
approximately a 21 percent increase from the current composite rate.
The proposed base charge and rates are based on the FY 2003 operating
plan for Western and the Bureau of Reclamation (Reclamation), and also
account for the restrictions in operations at the Hoover Dam following
the September 11, 2001 terrorist attack in the United States. The
following table compares the current and proposed base charge and
rates.
Comparison of Current and Proposed Base Charge and Rates
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Proposed Oct.
Current Oct. 1, 2001 through Sept. 30, 2002 1, 2002 through Percent change
Sept. 30, 2003 increase
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Total Composite (mills/kWh)...................................... 10.32 12.44 21
Base Charge ($).................................................. 48,039,988 58,993,730 23
Energy Rate (mills/kWh).......................................... 5.33 6.22 17
Capacity Rate ($/kWmonth)........................................ 0.99 1.26 27
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The increase in the base charge and rates results from higher
annual costs and lower non-power revenues. The significant increase in
annual costs is due to increased security staff at Hoover Dam, and
limitations on public tours at the Hoover visitor center. Another
contributing factor is an increase in the replacement costs.
Procedural Requirements
Although the proposed base charge and rates do not constitute a
major rate adjustment as defined by the procedures for public
participation in general rate adjustments, Western will hold both a
public information forum and a public comment forum. After considering
comments, Western will recommend the proposed base charge and rates for
final approval by the DOE Deputy Secretary.
The proposed firm power service base charge and rates for BCP are
being established pursuant to the DOE Organization Act 42 U.S.C. 7101-
7352; the Reclamation Act of 1902, ch. 1093, 32 Stat. 388, as amended
and supplemented by subsequent enactments, particularly section 9(c) of
the Reclamation Project Act of 1939, 43 U.S.C. 485h(c); and other acts
specifically applicable to the project involved.
Availability of Information
Interested parties may review and copy all brochures, studies,
comments, letters, memorandums, or other documents made or kept by
Western for developing the proposed base charge and rates. These
documents are at the Desert Southwest Customer Service Regional Office,
located at 615 South 43rd Avenue, Phoenix, Arizona.
Regulatory Procedural Requirements
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.)
requires Federal agencies to perform a regulatory flexibility analysis
if a final rule is likely to have a significant economic impact on a
substantial number of small entities, and there is a legal requirement
to issue a general notice of proposed rulemaking. This action does not
require a regulatory flexibility analysis since it is a rulemaking that
applies to rates or services for public property.
Environmental Compliance
In compliance with the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.); Council On Environmental Quality
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR
part 1021), Western has determined that this action is categorically
excluded from preparing an environmental assessment or an environmental
impact statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; therefore, this notice requires no clearance by
the Office of Management and Budget.
Small Business Regulatory Enforcement Fairness Act
Western has determined that this rule is exempt from congressional
notification requirements under 5 U.S.C. 801 because the action is a
rulemaking of particular applicability relating to rates or services
and involves matters of procedure.
Dated: February 8, 2002.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 02-4617 Filed 2-26-02; 8:45 am]
BILLING CODE 6450-01-P