Federal Register: December 28, 2006 (Volume 71, Number 249)

DOCID: FR Doc E6-22268

DEPARTMENT OF ENERGY

Western Area Power Administration

NOTICE: NOTICES

ACTION: Power rates:

DOCUMENT ACTION: Notice of Order Extending Transmission Service Rates and Notice of Extension of Public Process for Rate Adjustment.

SUBJECT CATEGORY:

Pacific Northwest-Pacific Southwest Intertie Project--Rate Order No. WAPA-133

DATES: The extended consultation and comment period begins today and will end March 28, 2007. A public information forum will be held on February 8, 2007, beginning at 10 a.m. MST in Phoenix, AZ. A public comment forum will be held February 27, 2007, beginning at 10 a.m. MST in Phoenix, AZ. Western will accept written comments any time during the consultation and comment period.

DOCUMENT SUMMARY:

This action is to extend the existing Pacific Northwest- Pacific Southwest Intertie Project (Intertie) transmission service rates through December 31, 2007. Simultaneously, the Western Area Power Administration (Western) is extending the public process for a rate adjustment that was initiated in July 2006 under Rate Order No. WAPA 130. Without this action, the existing transmission service rates will expire December 31, 2006, and no rates will be in effect for these services. Western initiated a public process to modify the transmission service rates for the Intertie, via a notice published in the Federal Register on July 12, 2006. Western is extending the comment and consultation period to allow sufficient time to evaluate additional alternatives to the proposed rates. In conjunction with extending the comment and consultation period, Western will hold an additional public information forum and public comment forum.

SUMMARY:

Pacific Northwest-Pacific Southwest Intertie Project,

SUPPLEMENTAL 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 (FERC).

The existing Rate Schedules consist of separate firm transmission service rates for the 230/345kilovolt (kV) and 500kV transmission systems and a nonfirm transmission service rate for the 230/345/500kV transmission system. Rate Schedules INTFT2 and INTNFT2, Rate Order No. WAPA71 \1\, were approved for a 53month period, beginning February 1, 1996, and ending September 30, 2000. Rate Order No. WAPA91 \2\ extended these rate schedules for a 39month period, beginning October 1, 2000, through December 31, 2003. Rate Order No. WAPA108 \3\ extended these rate schedules again beginning January 1, 2004, through December 31, 2006. Rate Schedule INTFT3, contained in Rate Order No. WAPA76, \4\ was approved for a 5year period, beginning January 1, 1999, and ending December 31, 2003. Rate Order No. WAPA108 extended this rate schedule beginning January 1, 2004, through December 31, 2006.
\1\ WAPA71 (published 2/7/96, 61 FR 4650) was approved by FERC on a final basis on July 24, 1996, through September 30, 2000, in Docket No. EF965191000 (76 FERC ]62,061).
\2\ WAPA91 (published 8/29/00, 65 FR 52423) (which extended the WAPA71 rates from October 1, 2000, through December 31, 2003) was approved by the Deputy Secretary on August 15, 2000. FERC
``accepted'' this extension pursuant to a letter order from Michael A. Coleman, Director, Division of Tariffs and RatesWest dated October 19, 2000 (Docket EF005191000).
\3\ WAPA108 (published 11/7/03, 68 FR 63083) (which extended the WAPA76 and WAPA71/91 rates) was approved by FERC on a final basis on March 25, 2004, through December 31, 2006, in Docket No. EF045191000 (106 FERC ]62,227)
\4\ WAPA76 (published 2/9/99, 64 FR 6344) was approved by FERC on a final basis on June 22, 1999, through December 31, 2003, in Docket No. EF995191000 (87 FERC ]61,346).

Western's Desert Southwest Customer Service Region entered into a rate adjustment process with aFederal Register notice published on July 12, 2006, (71 FR 39310), which began the initial public consultation and comment period that ended on October 10, 2006. Western seeks this extension to provide more time to evaluate additional alternatives to the proposed rates. During the original consultation and comment period, Western was evaluating the impacts of a transmission sale arrangement that would have mitigated the proposed rate increase. However, a deferral of that transaction requires Western to assess the impact on the proposed rates as presented in the public process. The evaluation period and public process will take approximately 6 months to complete, including additional formal public forums. This makes it necessary to extend the current rates under 10 CFR 903.23(b). Upon its approval, Rate Order No. WAPA71 and Rate Order No. WAPA76, previously extended under Rate Order No. WAPA91 and Rate Order No. WAPA108, will be extended under Rate Order No. WAPA133. Rate Order No. WAPA133 will be submitted to FERC for confirmation and approval on a final basis.

Following review of Western's proposal within DOE, I approve Rate Order No. WAPA133, which extends the existing Intertie firm and nonfirm transmission service rates, Rate Schedules INTFT2, INTFT3, and INTNFT2, through December 31, 2007.
[[Page 78190]]

Dated: December 21, 2006.
Clay Sell,
Deputy Secretary.
DEPARTMENT OF ENERGY, DEPUTY SECRETARY
In the Matter of: Western Area Power Administration Rates Extension for the Pacific NorthwestPacific Southwest Intertie Project Transmission Service Rates
Order Confirming and Approving an Extension of the Pacific Northwest Pacific Southwest Intertie Project Transmission Service Rates

These transmission service rates were 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. 00037.00, 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 Schedules consist of separate firm transmission service rates for the 230/345kilovolt (kV) and 500kV transmission systems and a nonfirm transmission service rate for the 230/345/500kV transmission system. Rate Schedules INTFT2 and INTNFT2, Rate Order No. WAPA71, were approved for a 53month period, beginning February 1, 1996, and ending September 30, 2000. Rate Order No. WAPA91 extended these rate schedules for a 39month period, beginning October 1, 2000, through December 31, 2003. Rate Order No. WAPA108 extended these rate schedules again beginning January 1, 2004, through December 31, 2006. Rate Schedule INTFT3, contained in Rate Order No. WAPA76, was approved for a 5year period, beginning January 1, 1999, and ending December 31, 2003. Rate Order No. WAPA108 extended this rate schedule beginning January 1, 2004, through December 31, 2006.

Discussion

Western's Desert Southwest Customer Service Region entered into a rate adjustment process with a Federal Register notice published on July 12, 2006, (71 FR 39310), which began the initial public consultation and comment period that ended on October 10, 2006. Western seeks an extension of the public process to provide more time to evaluate additional alternatives to the proposed rates. During the original consultation and comment period, Western was evaluating the impacts of a transmission sale arrangement that would have mitigated the proposed rate increase. However, a deferral of that transaction requires Western to assess the impact on the proposed rates as presented in the public process. The evaluation period and public process will take approximately 6 months to complete, including additional formal public forums. This makes it necessary to extend the current rates pursuant to 10 CFR part 903.23(b). Upon its approval, Rate Order No. WAPA71 and Rate Order No. WAPA76, previously extended under Rate Order No. WAPA91 and Rate Order No. WAPA108, will be extended under Rate Order No. WAPA133.

ORDER

In view of the above and under the authority delegated to me by the Secretary, I hereby extend the existing Rate Schedules INTFT2, INT FT3, and INTNFT2 for firm and nonfirm transmission service from January 1, 2007, through December 31, 2007.
Dated: 12/21/06.
Clay Sell,
Deputy Secretary.
[FR Doc. E622268 Filed 122706; 8:45 am]
BILLING CODE 645001P

FOR FURTHER INFORMATION CONTACT

Mr. Jack Murray, Rates Team Lead, Desert Southwest Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 850056457, (602) 6052442, email jmurray@wapa.gov.