[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