Notice2024-19564
Sam Rayburn Dam-Rate Order No. SWPA-84
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 30, 2024
Effective
October 1, 2024
Issuing agencies
Energy DepartmentSouthwestern Power Administration
Abstract
The Administrator, Southwestern Power Administration (Southwestern), has confirmed, approved and placed into effect on an interim basis Rate Order No. SWPA-84 (Rate Order), which provides the rate schedule Wholesale Rates for Hydro Power and Energy at Sam Rayburn Dam and Reservoir (SRD-23). This new rate schedule for the Sam Rayburn Dam and Reservoir (Rayburn) replaces the existing power rate under Rate Schedule SRD-15 which expires on September 30, 2024. Rate Schedule SRD- 23 increases the annual wholesale power rate for Rayburn by 21.1 percent.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 169 (Friday, August 30, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 169 (Friday, August 30, 2024)]
[Notices]
[Pages 70627-70629]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19564]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam--Rate Order No. SWPA-84
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of rate order.
-----------------------------------------------------------------------
SUMMARY: The Administrator, Southwestern Power Administration
(Southwestern), has confirmed, approved and placed into effect on an
interim basis Rate Order No. SWPA-84 (Rate Order), which provides the
rate schedule Wholesale Rates for Hydro Power and Energy at Sam Rayburn
Dam and Reservoir (SRD-23). This new rate schedule for the Sam Rayburn
Dam and Reservoir (Rayburn) replaces the existing power rate under Rate
Schedule SRD-15 which expires on September 30, 2024. Rate Schedule SRD-
23 increases the annual wholesale power rate for Rayburn by 21.1
percent.
DATES: The effective period for the rate schedule specified in Rate
Order No. SWPA-84 is October 1, 2024, through September 30, 2027,
pending confirmation and approval by the Federal Energy Regulatory
Commission (FERC) on a final basis, or until superseded.
FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice
President, Chief Operating Officer, Southwestern Power Administration,
(918) 595-6646 or <a href="/cdn-cgi/l/email-protection#d2b4a0bba6bab3fcbdbabea1bdbc92a1a5a2b3fcb5bda4"><span class="__cf_email__" data-cfemail="0660746f726e6728696e6a756968467571766728616970">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On June 30, 2016, FERC confirmed and
approved Rate Schedule SRD-15 under Rate Order No. SWPA-69 on a final
basis through September 30, 2019. Rate Schedule SRD-15 was subsequently
extended through September 30, 2024. Southwestern published a Federal
Register notice (Proposed FRN) on December 5, 2023 (87 FR 84318),
proposing to increase the annual rate by approximately 21.10% from
$4,563,792 to $5,526,588. The Proposed FRN also initiated a 90-day
public consultation and comment period and set the date of the public
information and public comment forum to be January 17, 2024. No written
comments were received and there were no outstanding comments or
questions from the public information and public comment forum.
Following review of the proposal, Rate Order No. SWPA-84, which
provides the rate for the hydro power and energy from Sam Rayburn Dam
and Reservoir, is hereby confirmed, approved, and placed into effect on
an interim basis. Southwestern will submit Rate Order No. SWPA-84 to
FERC for confirmation and approval on a final basis.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ADMINISTRATOR, SOUTHWESTERN POWER ADMINISTRATION
In the matter of: Southwestern Power Administration, Sam Rayburn Dam
Rate Schedule, Rate Order No. SWPA-84
[[Page 70628]]
Order Confirming, Approving, and Placing the Sam Rayburn Dam Rate
Schedule in Effect on an Interim Basis (8/26/2024)
Pursuant to Sections 301(b) and 302(a) of the Department of Energy
Organization Act, 42 U.S.C. 7151(b) and 7152(a), the functions of the
Secretary of the Interior and the Federal Power Commission under
Section 5 of the Flood Control Act of 1944, 16 U.S.C. 825s, relating to
the Southwestern Power Administration (Southwestern), were transferred
to, and vested in the Secretary of Energy. By Delegation Order No. S1-
DEL-RATES-2016, effective November 19, 2016, the Secretary of Energy
delegated: (1) the authority to develop power and transmission rates to
Southwestern'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, or to remand or disapprove such
rates, to the Federal Energy Regulatory Commission (FERC). By
Delegation Order No. S1-DEL-S3-2023, effective April 10, 2023, the
Secretary of Energy also delegated the authority to confirm, approve,
and place such rates into effect on an interim basis to the Under
Secretary for Infrastructure. By Redelegation Order No. S3-DEL-SWPA1-
2023, effective April 10, 2023, the Under Secretary for Infrastructure
redelegated the authority to confirm, approve, and place such rates
into effect on an interim basis to the Southwestern Administrator.
Background
On December 17, 2015, in Rate Order No. SWPA-69, the Deputy
Secretary of Energy placed into effect the current Sam Rayburn Dam rate
schedule (SRD-15) on an interim basis for the period January 1, 2016,
to September 30, 2019. FERC confirmed and approved SRD-15 on a final
basis on June 30, 2016, for a period ending September 30, 2019. On
September 22, 2019, in Rate Order No. SWPA-75, the Assistant Secretary
for Electricity extended SRD-15 for two years, for the period of
October 1, 2019, through September 30, 2021. On August 30, 2021, in
Rate Order No. SWPA-78, the Administrator, Southwestern, extended SRD-
15 for two years, for the period of October 1, 2021, through September
30, 2023. On September 20, 2023, in Rate Order No. SWPA-82, the
Administrator, Southwestern, extended SRD-15 for one year, for the
period of October 1, 2023, through September 30, 2024, and FERC issued
an ordering accepting the extension on January 18, 2024.
Discussion
Southwestern's current rate schedule for the Sam Rayburn Dam
isolated rate system, SRD-15, is based on the 2015 Power Repayment
Studies (PRS). Each subsequent annual PRS through 2022 indicated the
need for a revenue adjustment within a plus or minus five percent range
of the current revenue estimate. It is Southwestern's practice for the
Administrator to defer, on a case-by-case basis, revenue adjustments
for isolated rate systems that are within plus or minus five percent of
the revenue estimated from the current rate schedule. Therefore, the
Administrator deferred revenue adjustments annually for Sam Rayburn Dam
through 2022. Southwestern prepared a 2023 Current PRS which indicated
that the existing power rate would not satisfy present financial
criteria regarding repayment of investment within a 50-year period due
to increased operations and maintenance expenses as well as increase
cost of replacements in the hydroelectric generating facilities. The
2023 Revised PRS indicates the need for an increase in annual revenues
of $962,796 (21.1 percent) is necessary, to accomplish repayment in the
required number of years. Accordingly, Southwestern has prepared a new
proposed rate schedule (SRD-23) based on the additional revenue
requirement to ensure repayment.
Southwestern conducted the rate adjustment proceeding in accordance
with title 10, part 903, subpart A of the Code of Federal Regulations
(10 CFR part 903), ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions.'' Opportunities for
public review and comment during a 90-day period on the proposed Sam
Rayburn Dam power rate were announced by a Federal Register notice
published on December 5, 2023 (88 FR 84318), with written comments due
March 4, 2024. A combined public information and comment forum was held
virtually on January 17, 2024. Southwestern published the Federal
Register notice, the proposed rate schedule, and the draft 2023 PRS on
its website for customers and interested parties to review and comment
upon during the public comment period.
Following the conclusion of the comment period on March 4, 2024,
Southwestern finalized the Power Repayment Studies and Rate Schedule
SRD-23 for the proposed annual rate of $5,526,588 which is the lowest
possible rate needed to satisfy the repayment criteria set forth within
the provisions of U.S. Department of Energy (DOE) Order No. RA 6120.2.
This rate represents an annual increase of 21.1 percent. The
Administrator made the decision to approve the rate proposal for
implementation.
Southwestern will continue to perform its Power Repayment Studies
annually, and if the 2024 results should indicate the need for
additional revenues, another rate adjustment proceeding will be
conducted to implement the updated revenue requirements.
Comments and Responses
Southwestern did not receive any written comments during the 90-day
public review and comment period. Southwestern did receive oral
comments from Mr. James Striedel of GDS Associates, representing Sam
Rayburn Dam Electrical Cooperative, Inc., during Southwestern's January
17, 2024, public information and comment forum which are summarized
below. The comments are also included verbatim as part of the
transcript of the public comment forum which will be submitted to FERC
along with other applicable documents for final confirmation and
approval of Rate Schedule SRD-23.
Mr. Striedel was the only member of the public who attended the
public comment forum. Mr. Striedel commended Southwestern for its
diligence in managing costs and asked three questions. First, Mr.
Striedel asked Southwestern to confirm that the power repayment study
(PRS) estimate of U.S. Army Corps of Engineers (Corps) operations and
maintenance costs includes an estimate of the reduction in cost for
centralized dispatch of Sam Rayburn Dam. Southwestern confirmed this in
the affirmative. Second, Mr. Striedel asked for confirmation that the
PRS does not include costs for transformers that were gifted by
customers to the Corps. Southwestern confirmed this in the affirmative.
Finally, Mr. Striedel asked for confirmation that the PRS does not
include transmission cost from the Blakely Mountain and DeGray projects
to the system of Southwestern. Southwestern confirmed this in the
affirmative.
Availability of Information
Information regarding the rate adjustment proceeding, including the
Final 2023 PRS and Rate Proposal, for Rate Schedule SRD-23 is available
for public review in the offices of Southwestern Power Administration,
Williams Tower I, One West Third
[[Page 70629]]
Street Suite 1500, Tulsa, Oklahoma 74103. Rate Schedule SRD-23 is
available on Southwestern's website at <a href="http://www.energy.gov/swpa/rates-and-repayment">www.energy.gov/swpa/rates-and-repayment</a>.
Certification of Rates
I have certified that the provisional rate under Rate Schedule SRD-
23 is the lowest possible rate consistent with sound business
principles. The rate was developed following administrative policies
and applicable laws.
Ratemaking Procedure Requirements
Environmental Compliance
Southwestern has determined that this action fits within the
following categorical exclusions listed in appendix B to subpart D of
10 CFR 1021.410: B4.3 (Electric power marketing rate changes).
Categorically excluded projects and activities do not require
preparation of either an environmental impact statement or an
environmental assessment. A copy of the categorical exclusion
determination is available on Southwestern's website at <a href="https://www.energy.gov/swpa/southwestern-power-administration">https://www.energy.gov/swpa/southwestern-power-administration</a>.
Determination Under Executive Order 12866
Southwestern has an exemption from centralized regulatory review
under Executive Order 12866; accordingly, no clearance of this notice
by the Office of Management and Budget is required.
Submission to the Federal Energy Regulatory Commission
Rate Schedule SRD-23 herein confirmed, approved, and placed into
effect on an interim basis, together with supporting documents, will be
submitted to FERC for confirmation and final approval.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm, approve and place in
effect on an interim basis, effective October 1, 2024, Rate Schedule
SRD-23, Wholesale Rates for Hydro Power and Energy at Sam Rayburn Dam
and Reservoir. The rate schedule shall remain in effect on a temporary
basis through September 30, 2027, or until the FERC confirms and
approves the rate on a final basis, or until it is superseded by a
subsequent rate.
Signing Authority
This document of the Department of Energy was signed on August 26,
2024, by Michael S. Wech, Administrator for Southwestern Power
Administration, pursuant to delegated authority from the Secretary of
Energy. That document, with the original signature and date, is
maintained by DOE. For administrative purposes only, and in compliance
with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of DOE. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on August 27, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
Rate Schedule SRD-23 <SUP>1</SUP>
---------------------------------------------------------------------------
\1\ Supersedes Rate Schedule SRD-15
---------------------------------------------------------------------------
Wholesale Rates for Hydro Power and Energy
At Sam Rayburn Dam and Reservoir
Effective
During the period October 1, 2024, through September 30, 2027, in
accordance with interim approval from Rate Order No. SWPA-84 issued by
the Administrator on October 1, 2024, and pursuant to final approval by
the Federal Energy Regulatory Commission.
Applicable
To wholesale customers which have contractual rights from
Southwestern Power Administration (Southwestern) to purchase the Hydro
Power and Energy generated at the Sam Rayburn Dam and Reservoir.
Character and Conditions of Service
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage, at the point of delivery, and in such
quantities as are specified by contract.
1. Wholesale Rates, Terms, and Conditions for Hydro Power and Energy
1.1. This rate shall be applicable regardless of the quantity of
Hydro Power and Energy available or delivered from the Sam Rayburn Dam
and Reservoir; provided, however, that if an Uncontrollable Force
prevents utilization of both of the project's power generating units
for an entire billing period, and if during such billing period water
releases were being made which otherwise would have been used to
generate Hydro Power and Energy, then Southwestern shall, upon request
by the customer(s), suspend billing for subsequent billing periods,
until such time as at least one of the project's generating units is
again available.
1.2. The term ``Uncontrollable Force,'' as used herein, shall mean
any force which is not within the control of the party affected,
including, but not limited to, failure of water supply, failure of
facilities, flood, earthquake, storm, lightning, fire, epidemic, riot,
civil disturbance, labor disturbance, sabotage, war, acts of war,
terrorist acts, or restraint by court of general jurisdiction, which by
exercise of due diligence and foresight such party could not reasonably
have been expected to avoid.
1.3. Hydro Power Rates, Terms, and Conditions
1.3.1. Monthly Charge for the Period of October 1, 2024, through
September 30, 2027
$460,549 per month ($5,526,588 per year) for Sam Rayburn Dam Hydro
Power and Energy purchased from October 1, 2024, through September 30,
2027.
[FR Doc. 2024-19564 Filed 8-29-24; 8:45 am]
BILLING CODE 6450-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on August 30, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.