[Federal Register Volume 70, Number 99 (Tuesday, May 24, 2005)]
[Notices]
[Pages 29741-29742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10307]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project--Rate Order No. WAPA-123

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of order revising the Wholesale Firm Power Service Rate 
Schedule.

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SUMMARY: This action is to revise the existing Parker-Davis Project (P-
DP) Wholesale Firm Power Service Rate Schedule PD-F6 to include 
language pertinent to the Lower Colorado River Basin Development Fund 
surcharge, which the Western Area Power Administration (Western) is 
legislatively required to assess to P-DP power service customers in the 
states of Arizona, California, and Nevada beginning June 1, 2005. Title 
I, section 102(c) of the Hoover Power Plant Act of 1984 specifies that 
beginning June 1, 2005, and until the end of the repayment period for 
the Central Arizona Project, the Secretary of Energy shall provide for 
surplus revenues to the Lower Colorado River Basin Development Fund by 
including the equivalent of 4\1/2\ mills per kilowatthour in the rates 
set by the Secretary of Energy that are charged to Arizona purchasers 
and 2\1/2\ mills per kilowatthour in rates charged to California and 
Nevada purchasers of P-DP power.

FOR FURTHER INFORMATION CONTACT: Mr. Jack D. Murray, Rates Team Lead, 
Desert Southwest Region, Western Area Power Administration, P. O. Box 
6457, Phoenix, AZ 85005-6457, telephone (602) 605-2442, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00 effective 
December 6, 2001, the Secretary of Energy delegated: (1) The authority 
to develop power and transmission rates to Western'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, 
to remand, or to disapprove such rates to the Federal Energy Regulatory 
Commission.
    The existing P-DP firm rate methodology contained within Rate Order 
No. WAPA-75 was approved for 5 years. Subsequent rate orders extended 
the methodology until September 30, 2006. The revision of Rate Schedule 
PD-F6 for wholesale firm power service will not modify the approved 
rate methodology.
    Western is required by statute to begin imposing the surcharge on 
June 1, 2005. The Hoover Power Plant Act of 1984, Title I, section 
102(c) states:

* * * [F]or the Parker Davis project commencing June 1, 2005, and 
until the end of the repayment period for the Central Arizona 
project described in section 301(a) of this Act, the Secretary of 
Energy shall provide for surplus revenues by including the 
equivalent of 4\1/2\ mills per kilowatthour in the rates charged to 
purchasers in Arizona for application to the purposes specified in 
subsection (f) of this section and by including the equivalent of 
2\1/2\ mills per kilowatthour in the rates charged to purchasers in 
California and Nevada for application to the purposes of subsection 
(g) of this section as amended and supplemented: Provided further, 
that after the repayment period for said Central Arizona project, 
the equivalent of 2\1/2\ mills per kilowatthour shall be included by 
the Secretary of Energy in the rates charged to purchasers in 
Arizona, California, and Nevada to provide revenues for application 
to the purposes of said subsection (g) of this section.

    The rate schedule must be revised to include reference to the 
surcharge, which will be included on the customers' firm electric 
service bills for the June 2005 service month. Since the decision to 
revise Rate Schedule PD-F6 stems from a legislative requirement, 
Western has no discretion as to the amount or timing of the surcharge. 
Therefore, Western is not required to carry out a public process. Given 
the lack of discretion, this surcharge is being implemented under the 
Hoover Power Plant Act of 1984 and not Delegation Order No. 00-037.00.
    Following review of Western's proposal within the DOE, I hereby 
approve Rate Order No. WAPA-123, which revises Rate Schedule PD-F6 for 
P-DP firm power to include the Lower Colorado River Development 
Surcharge beginning June 1, 2005.


[[Page 29742]]


    Dated: May 13, 2005.
Clay Sell,
Deputy Secretary.

Department of Energy, Deputy Secretary

[Rate Order No. WAPA-123]

    In the Matter of Western Area Power Administration Rate Schedule 
Revision for Parker-Davis Project Wholesale Firm Power Service Rate

Order Confirming and Approving Revision of the Parker-Davis Project 
Wholesale Firm Power Service Rate Schedule

    This wholesale firm power service rate was established following 
section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152). This Act transferred to and vested in the Secretary of 
Energy the power marketing functions of the Secretary of the Department 
of the Interior and the Bureau of Reclamation under the Reclamation Act 
of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by 
subsequent laws, particularly section 9(c) of the Reclamation Project 
Act of 1939 (43 U.S.C. 485h(c)), and other Acts that specifically apply 
to the project system involved.
    By Delegation Order No. 00-037.00 effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to the Administrator of the Western Area Power 
Administration (Western); (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, to remand, or to disapprove such 
rates to the Federal Energy Regulatory Commission.

Background

    The existing rate methodology, Rate Order No. WAPA-75, was approved 
for 5 years. By subsequent rate orders, the rate was extended through 
September 30, 2006.

Discussion

    This action is to revise the existing Parker-Davis Project (P-DP) 
Wholesale Firm Power Service Rate Schedule PD-F6 to include language 
pertinent to the Lower Colorado River Basin Development Fund surcharge, 
which Western is legislatively required to assess to P-DP power 
customers in the states of Arizona, California, and Nevada beginning 
June 1, 2005. Title I, section 102(c) of the Hoover Power Plant Act of 
1984 specifies that beginning June 1, 2005, and until the end of the 
repayment period for the Central Arizona Project, the Secretary of 
Energy shall provide for surplus revenues to the Lower Colorado River 
Basin Development Fund by including the equivalent of 4\1/2\ mills per 
kilowatthour in the rates set by the Secretary of Energy that are 
charged to Arizona purchasers and 2\1/2\ mills per kilowatthour in 
rates charged to California and Nevada purchasers of P-DP power.
    On the Deputy Secretary of Energy's approval, Rate Order No. WAPA-
123 will revise existing P-DP Wholesale Firm Power Service Rate 
Schedule PD-F6 to include the Lower Colorado River Development 
Surcharge beginning June 1, 2005.

Order

    In view of the above and under the authority of the Hoover Power 
Plant Act of 1984, I hereby revise, effective June 1, 2005, the 
existing Rate Schedule PD-F6 for wholesale firm power service to 
include the Lower Colorado River Development Surcharge. The revised 
Rate Schedule PD-F6 shall remain in effect through September 30, 2006.

    Dated: May 13, 2005.
Clay Sell,
Deputy Secretary.
[FR Doc. 05-10307 Filed 5-23-05; 8:45 am]
BILLING CODE 6450-01-P