[Federal Register Volume 76, Number 3 (Wednesday, January 5, 2011)]
[Notices]
[Page 548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-33278]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Central Arizona Project-Rate Order No. WAPA-153
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Order Temporarily Extending Transmission Formula
Rates.
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SUMMARY: This action is to extend the existing Central Arizona Project
(CAP) formula rates through December 31, 2012. The existing
Transmission Service Formula Rate Schedules CAP-FT2, CAP-NFT2, and CAP-
NITS2 expire on December 31, 2010. These Transmission Service Rate
Schedules contain formula rates that are recalculated from annual
updated financial and load data.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert
Southwest Customer Service Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-6457, (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 the Administrator of 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 (FERC).
The existing rates, contained in Rate Order No. WAPA-124 \1\ were
approved for 5 years through December 31, 2010. Western is proposing to
temporarily extend the existing CAP transmission service formula rates
pursuant to 10 CFR 903.23 (b).
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\1\ FERC confirmed and approved Rate Order No. WAPA-124 on June
29, 2006 in Docket No. EF06-5111-000. See United States Department
of Energy, Western Area Power Administration, Central Arizona
Project, 115 FERC ] 62,326.
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Western is engaged in ongoing discussions with CAP stakeholders and
these discussions may ultimately result in Western proposing future
changes to the formula rates. Therefore, Western believes it is
premature to proceed with a formal rate adjustment process at this
time. Extending the existing Transmission Service Rate Schedules CAP-
FT2, CAP-NFT2, and CAP-NITS2 through December 31, 2012, will provide
adequate time for Western to finalize these discussions.
The existing CAP formula rates collect sufficient revenue to meet
all annual costs, including interest expense, and repayment of required
investment, thus ensuring repayment of the project within the cost
recovery criteria set forth in DOE order RA 6120.2.
Western did not have a consultation and comment period and did not
hold public information and comment forums, in accordance with 10 CFR
903.23 (b).
Following review of Western's proposal within the Department of
Energy, I hereby approve Rate Order No. WAPA-153, extending the
existing Transmission Service Rate Schedules CAP-FT2, CAP-NFT2, and
CAP-NITS2 through December 31, 2012. Rate Order No. WAPA-153 will be
submitted to FERC for informational purposes only.
Dated: December 29, 2010.
Daniel B. Poneman,
Deputy Secretary.
Department of Energy
Deputy Secretary
In the Matter of:
Western Area Power Administration, Rate Extension for Central
Arizona Project, Transmission Service Rate Schedules.
Rate Order No. WAPA-153.
Order Confirming and Approving an Extension of the Central Arizona
Project Transmission Service Rate Schedules
Section 302 of the Department of Energy (DOE) Organization Act (42
U.S.C. 7152) 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 involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop long-term
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 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 (FERC). This temporary extension
is issued pursuant to the Delegation Order and DOE rate extension
procedures at 10 CFR 903.23(b).
Background
On June 29, 2006, in Docket No. EF06-5111-000 at 115 FERC ] 62,326
FERC issued an order confirming, approving, and placing into effect on
a final basis the Transmission Service Rate Schedules CAP-FT2, CAP-NFT2
and CAP-NITS2 for the CAP. The Transmission Service Rates, Rate Order
No. WAPA-124, were approved for 5 years beginning January 1, 2006
through December 31, 2010.
Discussion
Western is proposing to extend the existing transmission rate
schedules pursuant to
10 CFR 903.23(b). Western's existing Transmission Service Formula
Rates, which are recalculated annually, would sufficiently recover
project expenses (including interest) and capital requirements through
December 31, 2012. Western did not have a consultation and comment
period and did not hold public information and comment forums, in
accordance with
10 CFR 903.23(b).
Order
In view of the above and under the authority delegated to me, I
hereby extend from January 1, 2011 through December 31, 2012, the
existing Rate Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2 for
transmission service for the Central Arizona Project of the Western
Area Power Administration.
Dated: December 29, 2010.
Daniel B. Poneman,
Deputy Secretary.
[FR Doc. 2010-33278 Filed 1-4-11; 8:45 am]
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