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DEPARTMENT OF ENERGY

Western Area Power Administration

NOTICE: NOTICES

ACTION: Power rates:

DOCUMENT ACTION: Notice of Order Concerning Power Rates.

SUBJECT CATEGORY: Pick-Sloan Missouri Basin Program--Eastern Division--Rate Order No. WAPA-135

DATES: Rate Schedules P-SED-F9 and P-SED-FP9 will be placed into effect on an interim basis on the first day of the first full billing period beginning on or after January 1, 2008, and will be in effect until FERC confirms, approves, and places the rate schedules in effect on a final basis ending December 31, 2012, or until the rate schedules are superseded.

DOCUMENT SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA135 and Rate Schedules PSEDF9 and PSEDFP9, placing firm power and firm peaking power rates from the PickSloan Missouri Basin ProgramEastern Division (PSMBPED) of the Western Area Power Administration (Western) into effect on an interim basis. The provisional rates will be in effect until the Federal Energy Regulatory Commission (FERC) confirms, approves, and places them into effect on a final basis or until they are replaced by other rates. The provisional rates will provide sufficient revenue to pay all annual costs, including interest expense, and repay power investment and irrigation aid within the allowable periods.

SUMMARY: Pick-Sloan Missouri Basin ProgramEastern Division,

SUPPLEMENTAL INFORMATION

The Deputy Secretary of Energy approved existing Rate Schedules PSEDF8 and PSEDFP8 for firm and firm peaking electric service on an interim basis on November 9, 2005.\1\ The existing rate schedules are effective from January 1, 2006, through December 31, 2010.
\1\ Rate Order No. WAPA125, November 9, 2005 (70 FR 71280). It was confirmed and approved by FERC on a final basis on June 14, 2006, in Docket No. EF065181000 (115 FERC ] 62276).

The PSMBPED firm power and firm peaking power rates must be increased due to the economic impact of the drought, increased operation and maintenance and other annual expenses, increased investments, and increased interest expense associated with drought induced deficits. Additionally, under Rate Schedules PSEDF9 and P SEDFP9, Western will identify its firm electric and firm peaking service revenue requirements using a Base component (Base) and a Drought Adder component (Drought Adder). Under Rate Schedule PSEDF9, Western will also eliminate the tiered rate in PSMBPED.

The existing firm electric service Rate Schedules PSEDF8 and P SEDFP8 are being superseded by Rate Schedules PSEDF9 and PSEDFP9. Under current Rate Schedules PSEDF8 and PSEDFP8, a twostep method was approved. The composite rate for the second step of Rate Schedules PSEDF8 and PSEDFP8, effective on January 1, 2007, is 19.54 mills per kilowatt hour (mills/kWh), the firm energy rate is 11.29 mills/kWh, the firm capacity rate is $4.45 per kilowatt month (kWmonth) and the firm peaking capacity rate is $4.45 per kWmonth. Under Rate Schedule P SEDF9, the provisional rates for firm electric services will result in a combined composite rate of 24.49 mills/kWh. The energy rate will be 13.99 mills/kWh (a Base component of 8.93 mills/kWh and a Drought Adder component of 5.06 mills/kWh) and the capacity rate will be $5.65 kWmonth (a Base component of $3.65/kWmonth and a Drought Adder component of $2.00/kWmonth). This will result in an increase of 25.3 percent when compared with the existing firm power rate under Rate Schedule PSEDF8. Under Rate Schedule PSEDFP9 the provisional [[Page 64068]]
rates for firm peaking power consist of a capacity charge of $5.10 per kWmonth and an energy charge of 13.99 mills/kWh, effective on January 1, 2008. This will result in an increase of 14.6 percent when compared with the existing firm peaking power rate under Rate Schedule PSED FP8.

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 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 FERC. Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985.

Under Delegation Order Nos. 00037.00 and 00001.00C, 10 CFR part 903, and 18 CFR part 300, I hereby confirm, approve, and place Rate Order No. WAPA135, the proposed PSMBPED firm power and firm peaking power rates, into effect on an interim basis. The new Rate Schedules P SEDF9 and PSEDFP9 will be promptly submitted to FERC for
confirmation and approval on a final basis.

Dated: November 1, 2007.
Clay Sell,
Deputy Secretary of Energy.
Department of Energy, Deputy Secretary
[Rate Order No. WAPA135]
In the matter of: Western Area Power Administration Rate Adjustment for the PickSloan Missouri Basin ProgramEastern Division
Order Confirming, Approving, and Placing the PickSloan Missouri Basin ProgramEastern Division Firm Power and Firm Peaking Power Service Rates Into Effect on an Interim Basis

These rates for the PickSloan Missouri Basin ProgramEastern Division were established in accordance with 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 section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s) and other Acts that specifically apply to the project 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 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 FERC. Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985.

Acronyms and Definitions

As used in this Rate Order, the following acronyms and definitions apply:
Administrator: The Administrator of the Western Area Power Administration.
Base: Revenue requirement component of the power rate including annual operation and maintenance expenses, investment repayment and associated interest, normal timing power purchases, and transmission costs. Capacity: The electric capability of a generator, transformer, transmission circuit, or other equipment. It is expressed in kilowatts. Capacity Charge: The rate which sets forth the charges for capacity. It is expressed in dollars per kWmonth.
Composite Rate: The rate for commercial firm power which is the total annual revenue requirement for capacity and energy divided by the total annual energy sales. It is expressed in mills per kilowatthour and used for comparison purposes.
Corps: United States Army Corps of Engineers.

FOR FURTHER INFORMATION CONTACT Mr. Robert J. Harris, Regional Manager, Upper Great Plains Region, Western Area Power Administration, 2900 4th Avenue North, Billings, MT 591011266, telephone (406) 247 7405, email rharris@wapa.gov, or Mr. Jon R. Horst, Rates Manager, Upper Great Plains Region, Western Area Power Administration, 2900 4th Avenue North, Billings, MT 591011266, telephone (406) 2477444, email
horst@wapa.gov.