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<br />1. SUMMAR Y <br /> <br />Western Area Power Administration (Western) is distributing this brochure <br />to provide information on the proposed establishment of the Salt Lake City Area <br />Integrated Projects (Integrated) power rate. Published procedures for public <br />involvement in proposed power rate adjustments will be followed. Public <br />information and comment forums will be held to provide additional information <br />and to hear from interested persons. There will be a 100-day consultation and <br />comment period during which interested persons may consult with, obtain <br />information from, or make written comments to Western representatives. <br />Following the review of oral and written comments, the Under Secretary of the <br />Department of Energy (DOE) may announce a rate decision. If the decision is to <br />establish the rate, it will be placed in effect on an' interim basis and <br />submitted to the Federal Energy Regulatory Commission (FERC) for a final <br />decision. <br /> <br />Project integration will integrate the Rio Grande and Collbran projects <br />with the Colorado River Storage Project (CRSP), The goal of integration is to <br />increase marketable resources, simplify contract and rate development and <br />project administration, assure repayment of costs, and create a common rate. <br />The projects will maintain their individual financial integrity for repayment <br />purposes but their revenue requirements will be integrated into one power <br />repayment study (PRS) for rate making. The integrated PRS will determine <br />whether power revenues are suffi ci ent to pay a 11 ind i v idua 1 project costs <br />within the prescribed time periods as defined by individual project statute and <br />DOE orders. <br /> <br />Western also proposes that a power factor adjustment clause be added to <br />the rate schedule. The clause calls for a surcharge of one percent for each <br />percentage point that a customer's power factor drops below 95 percent lagging <br />and 95 percent leading, as determined at the time of maximum monthly demand at <br />the customer's point of use, to be added to the customer's monthly bill. <br /> <br />Power repayment studies are used to determine whether or not power <br />revenues are sufficient to pay all of the project costs allocated to power <br />within the prescribed time periods. The Integrated PRS for FY 1985, revised to <br />include updated FY 1986 estimates, shows that a rate of 10.25 mills per <br />kilowatt hour would meet the revenue needs of all the projects. <br /> <br />II. RATE ADJUSTMENT PROCEDURE <br /> <br />A. Announcement of Proposed Rate and Consultation and Comment Period. <br />The procedures adopted by the DOE for power rate adjustments 9ive interested <br />persons a reasonable opportunity for participation in the development of <br />rates. The first step required by the procedure is the issuance of a Federal <br />Register notice announcing the proposed Integrated power rate. Western is also <br />distributing this brochure announcing the proposed Integrated power rate and <br />explaining the criteria used in determining the rate. A consultation and <br />comment period starts with the date of the Federal Register notice and will end <br />100 days thereafter or 15 days after the close of the public meeting, whichever <br />is later. During this period, interested persons will have the opportunity to <br />consult with and obtain information from Western representatives. They also <br />may examine PRS data and suggest changes. <br />