Sam Rayburn Dam Rate Schedule
| Published date | 09 September 2021 |
| Citation | 86 FR 50530 |
| Record Number | 2021-19395 |
| Section | Notices |
| Court | Energy Department,Southwestern Power Administration |
Federal Register, Volume 86 Issue 172 (Thursday, September 9, 2021)
[Federal Register Volume 86, Number 172 (Thursday, September 9, 2021)]
[Notices]
[Pages 50530-50532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19395]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam Rate Schedule
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of extension of Sam Rayburn Dam rate schedule.
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SUMMARY: The Administrator, Southwestern Power Administration
(Southwestern) has approved and placed into effect on an interim basis
Rate Order No. SWPA-78, which extends the following existing
Southwestern Sam Rayburn Dam Hydropower Project rate schedule: Rate
Schedule SRD-15, Wholesale Rates for Hydro Power and Energy. This is an
interim rate action effective October 1, 2021, extending for a period
of two years through September 30, 2023.
DATES: The effective period for the rate schedule specified in Rate
Order No. SWPA-78 is October 1, 2021, through September 30, 2023.
FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice
President and Chief Operating Officer, Office of Corporate Operations,
Southwestern Power Administration, U.S. Department of Energy, One West
Third Street, Tulsa, Oklahoma 74103, (918) 595-6684 or email:
[email protected].
SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-78 is approved and
placed into effect on an interim basis for the period October 1, 2021,
through September 30, 2023, for the following Southwestern Sam Rayburn
Dam rate schedule: Rate Schedule SRD-15, Wholesale Rates for Hydro
Power and Energy.
Decision Rationale
The Southwestern Administrator completed an annual review of the
continuing adequacy of the existing rate schedule for the Sam Rayburn
Dam. This review, as presented in the 2021 Sam Rayburn Dam Power
Repayment Studies (PRSs), indicated the need for a 3.5 percent revenue
increase to continue to satisfy cost recovery criteria. It is
Southwestern practice for the Administrator to defer, on a case-by-case
basis, revenue adjustments for an isolated project if such adjustments
are within plus or minus five percent of the revenue estimated from the
current rate schedule. The deferral of a revenue adjustment (rate
change) provides for rate stability and savings on the administrative
cost of implementation. The Administrator determined it to be prudent
to defer the increase and allow the current rate schedule, which is set
to expire September 30, 2021, to remain in effect.
To ensure that Southwestern has a rate schedule in effect for
collection of revenue in order to meet its repayment obligations, the
Administrator has approved and placed into effect a two-year extension
of the Sam Rayburn Dam rate schedule for the period October 1, 2021,
through September 30, 2023.
The Administrator followed part 903, subpart A of title 10 of the
Code of Federal Regulations (CFR), ``Procedures for Public
Participation in Power and Transmission Rate Adjustments and
Extensions'' for the extension to the rate schedule. The public was
informed by publication in the Federal Register (86 FR 31500 (June 14,
2021)) of the proposed extension of the rate schedule and of the
opportunity to provide written comments for a period of 30 days ending
July 14, 2021. No comments were received.
Legal Authority
By Delegation Order No. 00-037.00B, effective November 19, 2016,
the Secretary of Energy delegated: (1) The authority to develop power
and transmission rates to the Southwestern 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-S4-2021, effective
February 25, 2021, the Acting 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 Science (and Energy). By
Redelegation Order No. S4-DEL-OE1-2021, effective March 25, 2021, the
Acting Under Secretary for Science (and Energy) redelegated the
authority to confirm, approve, and place such rates into effect on an
interim basis to the Assistant Secretary for Electricity. And by
Redelegation Order No. 00-002.10-04, effective July 8, 2020, the
Assistant Secretary for Electricity further redelegated the authority
to confirm, approve, and place such rates into effect on an interim
basis to the Southwestern Administrator. This redelegation order,
despite predating the February 2021 delegation and March 2021
redelegation, remains valid. By these delegations, and in accordance
with 10 CFR 903.22(h) and 10 CFR 903.23(a), as amended (84 FR 5347,
5350 (Feb. 21, 2019)), the Administrator may approve and extend, on an
interim basis, rates previously confirmed and approved by
[[Page 50531]]
FERC beyond the period specified by FERC.
Environmental Impact
Southwestern previously determined that the rate change action,
placed into effect on January 1, 2016 for Sam Rayburn Dam fit within
the class of categorically excluded actions as listed in Appendix B to
Subpart D of 10 CFR part 1021, the Implementing Procedures and
Guidelines of the National Environmental Policy Act of 1969, as amended
(42 U.S.C. 4321-4347), categorical exclusions applicable to B4.3:
Electric power marketing rate changes, which does not require
preparation of either an environmental impact statement (EIS) or an
environmental assessment (EA). On May 27, 2021, Southwestern determined
that categorical exclusion B4.3 applies to the current action.
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.
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-78
Order Approving Extension of Rate Schedule on an Interim Basis
(August 30, 2021)
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. 00-
037.00B, effective November 19, 2016, the Secretary of Energy
delegated: (1) The authority to develop power and transmission rates to
the Southwestern 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-S4-2021, effective February 25, 2021, the
Acting 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 Science (and Energy). By Redelegation Order No. S4-
DEL-OE1-2021, effective March 25, 2021, the Acting Under Secretary for
Science (and Energy) redelegated the authority to confirm, approve, and
place such rates into effect on an interim basis to the Assistant
Secretary for Electricity. And by Redelegation Order No. 00-002.10-04,
effective July 8, 2020, the Assistant Secretary for Electricity further
redelegated the authority to confirm, approve, and place such rates
into effect on an interim basis to the Southwestern Administrator. This
redelegation order, despite predating the February 2021 delegation and
March 2021 redelegation, remains valid. By these delegations, and in
accordance with 10 CFR 903.22(h) and 10 CFR 903.23(a), as amended (84
FR 5347, 5350 (Feb. 21, 2019)), the Southwestern Administrator may
approve and extend, on an interim basis, rates previously confirmed and
approved by FERC beyond the period specified by FERC. Pursuant to that
delegated authority, the Southwestern Administrator has issued this
interim rate order.
Background
The following rate schedule for Sam Rayburn Dam was confirmed and
approved on a final basis by FERC on June 30, 2016, in Docket No. EF16-
2-000 (155 FERC ] 62,254) for the period January 1, 2016, through
September 30, 2019.
Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy
Since initial FERC approval, the Assistant Secretary for
Electricity extended the Sam Rayburn rate schedule SRD-15 for a period
of two years, from October 1, 2019, through September 30, 2021, in Rate
Order No. SWPA-75.
Discussion
The existing Sam Rayburn Dam rate schedule is based on the
Southwestern 2015 power repayment studies (PRSs). PRSs have been
completed for the Sam Rayburn Dam isolated project each year since
approval of the existing rate schedule. Since 2015, subsequent PRSs
have indicated the need for a minimal rate increase, all within the
plus or minus five percent rate adjustment threshold practice
established by the Administrator on September 8, 2003. Therefore, the
Administrator deferred these rate adjustments in the best interest of
the government.
However, the existing rate schedule is set to expire on September
30, 2021. Consequently, Southwestern proposed to extend the existing
rate schedule for a two-year period ending September 30, 2023, on an
interim basis under the implementation authorities noted in 10 CFR
903.22(h) and 10 CFR 903.23(a).
Southwestern followed 10 CFR part 903, ``Procedures for Public
Participation in Power and Transmission Rate Adjustments and
Extensions'' for the proposed extension of the rate schedule. An
opportunity for customers and other interested members of the public to
review and comment on the proposed extension of the rate schedule was
published in the Federal Register on June 14, 2021 (86 FR 31500), with
written comments due by July 14, 2021.
Comments and Responses
Southwestern received no comments regarding the extension of the
rate schedule.
Availability of Information
Information regarding the extension of the rate schedule is
available for public review in the offices of Southwestern Power
Administration, Williams Tower I, One West Third Street, Tulsa,
Oklahoma 74103. The rate schedule is available on the Southwestern
website at www.swpa.gov.
Administration's Certification
The 2015 Sam Rayburn Dam PRSs indicated that the current rate
schedule will repay all costs including amortization of the power
investment consistent with the provisions of Department of Energy Order
No. RA 6120.2. The 2021 Sam Rayburn Dam PRSs indicated the need for an
annual revenue increase of 3.5 percent. However, the 2021 rate
adjustment falls within the Southwestern established plus or minus five
percent isolated project rate adjustment threshold practice and was
deferred.
The Southwestern 2022 PRSs will determine the appropriate level of
revenues needed for the next rate period. In accordance with Delegation
Order No. 00-037.00B, effective November 19, 2016, and Section 5 of the
Flood Control Act of 1944, the Administrator has determined that the
existing rate schedule is the lowest possible rate consistent with
sound business principles, and the extension is consistent with
applicable law.
Environment
Southwestern previously determined that the rate change actions,
placed into effect on January 1, 2016 for Sam
[[Page 50532]]
Rayburn Dam, fit within the class of categorically excluded actions as
listed in Appendix B to Subpart D of 10 CFR part 1021, the Implementing
Procedures and Guidelines of the National Environmental Policy Act of
1969, as amended (42 U.S.C. 4321-4347): Categorical exclusions
applicable to B4.3: Electric power marketing rate changes, which does
not require preparation of either an environmental impact statement
(EIS) or an environmental assessment (EA). On May 27, 2021,
Southwestern determined that categorical exclusion B4.3 applies to the
current action.
Administrative Procedures
Under the Administrative Procedure Act (5 U.S.C. 553(d)),
publication or service of a substantive rule must be made not less than
30 days before its effective date, except (1) a substantive rule that
grants or recognizes an exemption or relieves a restriction; (2)
interpretative rules and statements of policy; or (3) as otherwise
provided by the agency for good cause found and published with the
rule. The Administrator finds good cause to waive the 30-day delay in
the effective date of this action as unnecessary for the following
reasons: (1) This is an extension of rates previously approved by FERC,
pursuant to 10 CFR 903.23(a); (2) there are no substantive changes, as
the existing rate schedules and anticipated revenues remain the same;
and (3) the Administrator provided notice and opportunity for public
comment more than 30 days prior to the effective date of the rate
extension and received no comments.
Order
In view of the foregoing, and pursuant to delegated authority from
the Secretary of Energy, I hereby extend on an interim basis, for the
period of two years, effective October 1, 2021, through September 30,
2023, the current Sam Rayburn Dam rate schedule:
Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy
Signing Authority
This document of the Department of Energy was signed on August 30,
2021, by Mike 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 September 2, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
United States Department of Energy
Southwestern Power Administration
Rate Schedule SRD-15 1 **
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\1\ Supersedes Rate Schedule SRD-13.
** Extended through September 30, 2023, by approval of Rate
Order No. SWPA-78 by the Administrator, Southwestern Power
Administration.
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Wholesale Rates for Hydro Power and Energy Sold to Sam Rayburn Dam
Electric Cooperative, Inc.
(Contract No. DE-PM75-92SW00215)
Effective
During the period January 1, 2016, through September 30, 2023,** in
accordance with the Federal Energy Regulatory Commission (FERC) order
issued in Docket No. EF16-2-000 (June 30, 2016), extension approved by
the Assistant Secretary for Electricity in Rate Order No. 75 (Sept. 22,
2019), and extension approved by the Administrator in Rate Order No. 78
(August 30, 2021).
Applicable
To the power and energy purchased by Sam Rayburn Dam Electric
Cooperative, Inc. (SRDEC) from the Southwestern Power Administration
(Southwestern) under the terms and conditions of the Power Sales
Contract dated October 7, 1992, as amended, for the sale of all 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 to SRDEC; 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 SRDEC, 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 January 1, 2016, through
September 30, 2023.
$380,316 per month ($4,563,792 per year) for Sam Rayburn Dam Hydro
Power and Energy purchased by SRDEC from January 1, 2016, through
September 30, 2023.
[FR Doc. 2021-19395 Filed 9-8-21; 8:45 am]
BILLING CODE 6450-01-P
