51898 Federal Register Notice

​[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

[[Page 27279]]

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, 199 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, anplace 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.