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Federal Register / Vol. 86, No. 161 / Tuesday, August 24, 2021 / Notices Reclamations FY 2022 budget is increasing by $1.6 million to $81.7
million, a 2 percent increase from FY
2021. While O&M costs are decreasing by $4.4 million compared to FY 2021, there was a minimal increase of $44,000
for post-retirement benefits and replacement costs are increasing by $4.4
million due to the addition of new projects and the inclusion of projects that were previously deferred due to the COVID19 pandemic. Visitor services costs are also increasing by $1.5 million in FY 2022, primarily due to a $1
million reallocation of expenses from administrative and general expenses in O&M to visitor services expenses.
Higher labor projections in salaries, overtime, overhead, and benefits also contribute to the visitor services increase.
WAPAs FY 2022 budget is increasing by $762,000 to $9.2 million, a 9.1
percent increase from FY 2021. A
$247,000 increase in WAPAs replacement budget for communication equipment and higher O&M expenses of $520,000 account for this increase. The increase in O&M expenses is primarily due to the following: The Hoover-Mead transmission line lease costs, which were not budgeted in FY 2021; an updated distribution of labor costs resulting from the closure of the Navajo Generating Station near Page, Arizona;
and higher labor projections for salaries, overtime, overhead, and benefits in power operations. The increase in replacements and O&M costs is offset by a modest decrease in facility expenses and post-retirement benefits.
The cost increase for both Reclamation and WAPA is offset by a $2.1 million increase in non-power revenue projections due to the added commercial use authorization for roadbased tours. Prior year carryover is estimated to be $2.7 million, a $1.7
million decrease from FY 2021.
While the base charge is increasing 2.9 percent, the composite and energy rates are both increasing 14 percent and the capacity rate is increasing 20.1
percent from FY 2021. Projections of energy and capacity are decreasing in FY 2022 due to the ongoing drought in the Lower Colorado River Basin.
Reclamation and WAPA work collaboratively each year to minimize budget increases to moderate the financial impact of the drought to the rates. For FY 2022, Reclamation and WAPA were able to reduce previously formulated budgets and defer projects to decrease costs by $4 million. Without this decrease in costs, the base charge would have increased approximately $5.9 million instead of $1.9 million.

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Public Notice and Comment The notice of the proposed FY 2022
base charge and rates for electric service was published consistent with procedures set forth in 10 CFR part 903
and 10 CFR part 904. WAPA took the following steps to involve customers and interested parties in the rate process:
1. On April 15, 2021, a Federal Register notice 86 FR 19881
announced the proposed base charge and rates and initiated the 90-day public consultation and comment period.
2. On May 17, 2021, WAPA held a public information forum by web conference. WAPA and Reclamation representatives explained the proposed base charge and rates and answered questions. Presentation materials and supplemental information requested by customers were posted to WAPAs website.
3. On June 14, 2021, WAPA held a public comment forum by web conference to provide customers and interested parties an opportunity to comment for the record. WAPA received no comments during this forum.
4. On July 14, 2021, the public consultation and comment period ended with WAPA receiving no comments.
Certification of Rates WAPAs Administrator certified that the FY 2022 base charge and rates under Rate Schedule BCPF10 are the lowest possible rates consistent with sound business principles. The base charge and rates were developed following administrative policies and applicable laws.
Availability of Information Information about the rate process to establish the FY 2022 base charge and rates was made available on WAPAs website at https www.wapa.gov/
regions/DSW/Rates/Pages/bouldercanyon-rates.aspx.
Legal Authority 10 CFR 904.7e requires annual review of the BCP base charge and an adjustment, either upward or downward, when necessary and administratively feasible, to assure sufficient revenues to effect payment of all costs and financial obligations associated with the project. WAPAs Administrator provided all BCP
contractors an opportunity to comment on the proposed base charge adjustment consistent with the procedures for public participation in rate adjustments as required under 10 CFR 904.7e and the BCP Electric Service Contract. The BCP Electric Service Contract states that for years other than the first year and
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each fifth year thereafter, when the rate schedule is approved by the Deputy Secretary on a provisional basis and by FERC on a final basis, adjustments to the base charge shall become effective upon approval by the Deputy Secretary of Energy. Under the DOE Organization Act, the Secretary of Energy holds plenary authority over DOE affairs with respect to the Power Marketing Administrations, and the Secretary of Energy may therefore exercise the Deputy Secretarys contractual authority in this context. By Delegation Order No.
S1DELS42021, effective February 25, 2021, the Acting Secretary of Energy delegated to the Under Secretary for Science and Energy the authority vested in the Secretary with respect to the . . . Western Area Power Administration. By Redelegation Order No. S4DELOE12021, effective March 25, 2021, the Acting Under Secretary for Science and Energy redelegated the same authority to the Assistant Secretary for Electricity. Based upon the governing terms of the existing BCP
Electric Service Contract, the Acting Assistant Secretary for Electricity is approving the FY 2022 base charge and rates for BCP electric service. This rate action is issued under the Redelegation Orders and DOEs procedures for public participation in rate adjustments as set forth at 10 CFR part 903 and 10 CFR
part 904.2
Following DOEs review of WAPAs proposal, and as authorized by applicable provisions of the BCP
Electric Service Contract, I hereby confirm, approve, and place the FY
2022 base charge and rates for BCP
electric service, under Rate Schedule BCPF10, into effect on a final basis through September 30, 2022.
Ratemaking Procedure Requirements Environmental Compliance WAPA has determined this action fits within the following categorical exclusions listed in appendix B to subpart D of 10 CFR 1021: B4.3 Electric power marketing rate changes and B4.4
Power marketing services and activities. Categorically excluded projects and activities do not require preparation of either an environmental impact statement EIS or an environmental assessment EA.3 A
2 50 FR 37835 Sept. 18, 1985 and 84 FR 5347
Feb. 21, 2019.
3 The determination was done in compliance with the National Environmental Policy Act NEPA of 1969, as amended, 42 U.S.C. 43214347; the Council on Environmental Quality Regulations for implementing NEPA 40 CFR parts 15001508; and DOE NEPA Implementing Procedures and Guidelines 10 CFR part 1021.

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