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<br />I. SUMMARY <br /> <br />The Western Area Power Administration (Western) is providing <br />information on the proposed adjustment of the Salt Lake City Area <br />Integrated Projects (Integrated Projects) firm power rate in this <br />brochure. A public information forum and a pUblic comment forum will <br />be held during the consultation and comment period, discussed in <br />Section II, to provide additional information and to hear from <br />interested persons. After the consultation and comment period and <br />review of oral and written comments, the Administrator of Western may <br />develop a provisional firm power rate, which, with the concurrence of <br />the Deputy Secretary of the Department of Energy (DOE), would be <br />confirmed, approved, and placed into effect on an interim basis. If <br />the decision is to adjust the rate, it will be announced to the public <br />along with an explanation of the principal factors leading to the <br />decision. The new rate would be placed in effect on an interim basis <br />and submitted to the Federal Energy Regulatory Commission (FERC) for <br />approval on a final basis. <br /> <br />The Integrated Projects consist of the Colorado River Storage Project <br />(CRSP), the Rio Grande Project (RGP), and the Collbran Project <br />(Collbran). These projects were integrated for marketing and rate- <br />making purposes on October 1, 1987. <br /> <br />Power repayment studies (PRSs) are used to determine if power revenues <br />are sufficient to pay all of the project costs allocated to power <br />within the prescribed time periods. Information from annual PRSs for <br />CRSP, RGP, and Collbran is used in the Integrated Projects PRS to <br />determine the integrated rate. The fiscal year (FY) 1989 Integrated <br />Projects Preliminary PRS shows that a capacity charge of $2.82 per <br />kilowatt-month (kW-month) and an energy charge of 6.64 mills per <br />kilowatthour (mills/kWh) will be needed to meet the revenue <br />requirements of the Integrated Projects. Western proposes to place a <br />provisional rate in effect on October 1, 1990. <br /> <br />II. RATE ADJUSTMENT PROCEDURE <br /> <br />A. Announcement of Proposed Rate and Consultation and Comment <br />Period. A rate adjustment is being considered because the FY 1989 <br />Integrated Projects Preliminary PRS indicates that the firm power <br />rate needs to be increased from the present capacity charge of <br />$2.09/kW-month and energy charge of 5.0 mills/kWh, a combined rate <br />of 9.92 mills/kWh calculated at 58.2 percent load factor. A <br />capacity charge of $2.82/kW-month and an energy charge of <br />6.64 mills/kWh, resulting in a proposed combined rate of <br />13.4 mills/kWh calculated at 58.2 percent load factor, would meet <br />revenue requirements. <br /> <br />The procedures adopted by DOE give interested persons an <br />opportunity to participate in the development of power rates. The <br />pUblished procedures for rate adjustments, as amended, are <br />included in Appendix A of this rate brochure, "Procedures for <br />Public Participation in Power and Transmission Rate Adjustments <br />and Extensions." The first step required by the procedures is <br />