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Proposed Rates for Loveland Area Projects Firm Electric Service
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: June 13, 2003 (Volume 68, Number 114)]
[Notices]
[Page 35401-35402]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13jn03-71]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Proposed Rates for Loveland Area Projects Firm Electric Service
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed rates.
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SUMMARY: The Western Area Power Administration (Western) is proposing
revised rates for Loveland Area Projects (LAP) firm electric service.
Current rates, under Rate Schedule L-F4, have been extended through
March 31, 2004. The proposed rates will provide sufficient revenue to
pay all annual costs, including interest expense and repayment of
required investment within the allowable period. The rate impacts will
be detailed in a brochure to be made available to all interested
parties. The proposed rates, under Rate Schedule L-F5, are scheduled to
go into effect on January 1, 2004, and will remain in effect through
December 31, 2008. Publication of this Federal Register notice begins
the formal process for the proposed rates.
DATES: The consultation and comment period begins today and will end
September 11, 2003.
Western will present a detailed explanation of the proposed rates
at the following public information forums:
1. July 14, 2003, 1 p.m. MDT in Denver, Colorado.
2. July 15, 2003, 9 a.m. CDT in Lincoln, Nebraska.
Western will receive oral and written comments at the following
public comment forum:
1. August 6, 2003, 1 p.m. MDT in Denver, Colorado.
ADDRESSES: The public information forums will be held at the following
locations:
1. Denver, Radisson Stapleton Plaza Hotel, 3333 Quebec Street,
Denver, Colorado.
2. Lincoln, Southeast Community College, 11th and O Street,
Lincoln, Nebraska.
The public comment forum will be held at the following location:
1. Denver, Radisson Stapleton Plaza Hotel, 3333 Quebec, Denver,
Colorado.
Written comments should be sent to: Joel K. Bladow, Regional
Manager, Rocky Mountain Region, Western Area Power Administration, 5555
East Crossroads Boulevard, Loveland, CO 80538-8986, or email:
lapfirmadj@wapa.gov. Official comments received via letter and e-mail
will be posted to our Web site located under the ``2004 Rate
Adjustments'' section at http://www.wapa.gov/rm/rm.htm 
after the close of the 90-day consultation and comment period. Western
must receive written comments by the end of the consultation and comment
period to be assured consideration.
FOR FURTHER INFORMATION CONTACT: Mr. Daniel T. Payton, Rates Manager,
Rocky Mountain Region, Western Area Power Administration, 5555 East
Crossroads Boulevard, Loveland, CO 80538-8986, telephone (970) 461-
7442, email: dpayton@wapa.gov.
SUPPLEMENTARY INFORMATION: The proposed rates for LAP firm electric
service are designed to recover an annual revenue requirement that
includes investment repayment, interest, purchase power, operation and
maintenance, and other annual expenses. The projected annual revenue
requirement for firm electric service is allocated equally between
capacity and energy.
The Department of Energy (DOE) Deputy Secretary approved Rate
Schedule L-F4 for LAP firm electric service on an interim basis on
January 6, 1994 (Rate Order No. WAPA-61, 59 FR 3339, January 21, 1994),
and the Federal Energy Regulatory Commission (FERC) confirmed and
approved the rate schedule on a final basis on July 14, 1994, under
FERC Docket No. EF94-5181-000 (68 FERC 62,040). Rate Schedule L-F4 was
approved for a 5-year period beginning on February 1, 1994, ending on
January 31, 1999. Rate Order No. WAPA-82 extended the existing rate for
2 years, beginning February 1, 1999, through January 31, 2001. Rate
Order No. WAPA-89 extended the rate again beginning February 1, 2001,
through September 30, 2003. FERC confirmed and approved the rate
schedule on August 4, 2000, under FERC Docket No. EF00-5181-000 (92
FERC 62,093). Rate Order No. WAPA-103 extended the rate a third time
beginning October 1, 2003, through March 31, 2004.
Under Rate Schedule L-F4, the composite rate effective on October
1, 1994, is 21.70 mills per kilowatthour (mills/kWh); the energy rate
is 10.85 mills/kWh and the capacity rate is $2.85 per kilowattmonth
(kW-month). Under Rate Schedule L-F5, the proposed rates for LAP firm
electric service will result in an overall composite rate increase of
approximately 9.7 percent effective on January 1, 2004. The proposed
rates for LAP firm electric service are listed in Table 1.
[[Page 35402]]
Table 1.--Proposed Firm Electric Service Revenue Requirement and Rates
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Existing revenue requirement/ Proposed rev req./rates Percent
Firm electric service rates Jan. 1, 2004 change
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LAP Revenue Requirement.................. $44.3 million............... $48.6 million............... 9.7
Total LAP Composite Rate................. 21.70 mills/kWh............. 23.81 mills/kWh............. 9.7
Firm Energy.............................. 10.85 mills/kWh............. 11.91 mills/kWh............. 9.8
Firm Capacity............................ 2.85/kW-month............... 3.14/kW-month............... 10.2
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Although a one-step rate adjustment method is the option being
proposed, Western is interested in receiving comments on a two-step
rate adjustment option. Under a two-step method, the rates for LAP firm
electric service will result in an overall composite rate increase of
approximately 7.8 percent effective on January 1, 2004, and another 1.9
percent effective on October 1, 2004, for a total increase of
approximately 9.7 percent. The rates under this option for LAP firm
electric service are listed in Table 2.
Table 2.--Two-Step Option--Firm Electric Service Revenue Requirement and Rates
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First step rates Percent Second step rates Percent
Firm electric service Existing rates Jan. 1, 2004 change Oct. 1, 2004 change
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LAP Revenue Requirement........ $44.3 million..... $47.7 million..... 7.7 $48.6 million.... 1.9
Total LAP Composite Rate....... 21.70 mills/kWh... 23.39 mills/kWh... 7.8 23.84 mills/kWh.. 1.9
Firm Energy.................... 10.85 mills/kWh... 11.69 mills/kWh... 7.7 11.92 mills/kWh.. 2.0
Firm Capacity.................. 2.85/kW-month..... 3.08/kW-month..... 8.1 3.14/kW-month.... 1.9
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Since the proposed rates constitute a major adjustment as defined
by the procedures for public participation in general rate adjustments,
as cited below, Western will hold public information forums and a
public comment forum. After review of public comments, and possible
amendments or adjustments, Western will recommend the proposed rates
for approval on an interim basis by the DOE Deputy Secretary.
These firm electric service rates for LAP are being established
pursuant to the Department of Energy 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 projects involved.
By Delegation Order No. 00-037.00, approved December 6, 2001, the
Secretary of Energy delegated (1) the authority to develop power and
transmission rates on a nonexclusive basis to Western's Administrator;
(2) the authority to confirm, approve, and place such rates into effect
on an interim basis to the Deputy Secretary; and (3) the authority to
confirm, approve, and place into effect on a final basis, to remand, or
to disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR part 903) became
effective on September 18, 1985 (50 FR 37835).
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents made or kept by Western in developing the proposed rates are
available for inspection and copying at the Rocky Mountain Regional
Office, located at 5555 East Crossroads Boulevard, Loveland, Colorado.
Many of these documents, as well as supporting information, are also
available on our Web site under the ``2004 Rate Adjustments'' section
located at http://www.wapa.gov/rm/rm.htm.
Regulatory Procedure 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
involving rates or services applicable to 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; so 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
rulemaking of particular applicability relating to rates or services
and involves matters of procedure.
Dated: May 30, 2003.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 03-14948 Filed 6-12-03; 8:45 am]
BILLING CODE 6450-01-P