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[Federal Register: May 18, 1998 (Volume 63, Number 95)]
[Notices]               
[Page 27278-27279]
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DEPARTMENT OF ENERGY
Western Area Power Administration
 
Amistad and Falcon Projects--Notice of Order Confirming and 
Approving an Extension of the Power Rate Formula--WAPA-81
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order.
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SUMMARY: This action is to extend the existing Amistad and Falcon 
Projects' power rate formula until June 7, 1999. Without this action, 
the existing power rate formula will expire June 7, 1998; and no rate 
formula will be in effect for this service.
FOR FURTHER INFORMATION CONTACT: Mr. Dave Sabo, CRSP Manager, CRSP 
Customer Service Center, Western Area Power Administration, P.O. Box 
11606, Salt Lake City, UT 84147-0606, telephone (801) 524-5493.
SUPPLEMENTARY INFORMATION: By Amendment No. 3 to Delegation Order No. 
0204-108, published November 10, 1993 (58 FR 59716), the Secretary of 
Energy delegated (1) the authority to develop long-term power and 
transmission rates on a nonexclusive basis 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; 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).
    Pursuant to Delegation Order No. 0204-108 and existing Department 
of Energy (DOE) procedures for public participation in power rate 
adjustments at 10 CFR Part 903, the power rate formula for Western's 
Amistad and Falcon Projects was submitted to FERC for confirmation and 
approval on June 10, 1993. On September 29, 1993, in Docket No. EF93-
5101-000 at 64 FERC para. 62,225, FERC issued an order confirming, 
approving, and placing into effect on a final basis the power rate 
formula for the Amistad and Falcon Projects. The rate was approved for 
the 5-year period beginning June 8, 1993, and ending June 7, 1998.
    All of the generation from these projects is marketed by Western 
under the terms of Contract No. 7-07-50-P0890 dated August 9, 1977, and 
amended on April 10, 1986. According to the terms of the Contract, the 
customers, Medina Electric Cooperative, Inc. and South Texas Electric 
Cooperative, Inc., agreed to purchase the
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output of the Amistad and Falcon Powerplants for a 50-year period, 
beginning when electrical service initially became available. The 
Cooperatives agreed to take all Amistad and Falcon Projects' power and 
to pay the United States annual installments that are calculated to 
repay the power investment costs with interest, within 50 years, and 
annual operation, maintenance, replacement, and administration costs of 
the projects.
    Following review of Western's proposal within DOE, I have approved 
Rate Order No. WAPA-81, which extends the existing power rate formula 
for Amistad and Falcon Projects until June 7, 1999.
    Dated: May 6, 1998.
Elizabeth A. Moler,
Deputy Secretary.
[Rate Order No. WAPA-81]
    In the Matter of: Western Area Power Administration, Extension 
for Amistad and, Falcon Projects Power Rate Formula
Order Confirming and Approving an Extension of the Amistad and Falcon 
Projects' Power Rate Formula
June 7, 1998
    This rate formula was established pursuant to Section 302(a) of the 
Department of Energy (DOE) Organization Act, 42 U.S.C. 7152(a), through 
which the power marketing functions of the Secretary of the Interior 
and the Bureau of Reclamation (Reclamation) under 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 Amistad Project and the Falcon Projects were 
transferred to and vested in the Secretary of Energy (Secretary).
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary delegated (1) the 
authority to develop long-term power and transmission rates on a 
nonexclusive basis 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; 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). This disapprove such rates 
to the Federal Energy Regulatory Commission (FERC). This rate extension 
is issued pursuant to the Delegation Order and the DOE rate extension 
procedures at 10 CFR Part 903.
Background
    In the order issued September 29, 1993, at 64 FERC para. 62,225, in 
Docket No. EF93-5101-000, FERC confirmed, approved, and placed into 
effect on a final basis the power rate formula for the Amistad and 
Falcon Projects. The rate formula was approved for the period from June 
8, 1993, through June 7, 1998.
Discussion
    All of the generation from these projects is marketed by Western 
under the terms of Contract No. 7-07-50-P0890 dated August 9, 1977, and 
amended on April 10, 1986. According to the terms of the Contract, the 
customers, Medina Electric Cooperative, Inc. and South Texas Electric 
Cooperative, Inc., agreed to purchase the output of the Amistad and 
Falcon Powerplants for a 50-year period, beginning when electrical 
service initially became available. The Cooperatives agreed to take all 
Amistad and Falcon Projects' power and to pay the United States annual 
installments that are calculated to repay the power investment costs 
with interest, within 50 years, and annual operation, maintenance, 
replacement, and administration costs of the projects.
    On June 7, 1998, Western's Amistad and Falcon power rate formula 
will expire. Pursuant to 10 CFR 903.23, Western proposes to extend the 
existing rate formula until June 7, 1999, to determine whether it 
should make any changes in the present rate formula and Power Repayment 
Study presentation. During the early part of FY 1999, Western will 
begin a public rate adjustment process to this effect with the 
publication of a notice in the Federal Register.
Order
    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary, I hereby extend for a period, effective June 8, 
1998, through June 7, 1999, the existing rate formula for the Amistad 
and Falcon Powerplants.
Dated: May 6, 1998.
Elizabeth A. Moler,
Deputy Secretary.