Rocky Mountain Region Transmission, Ancillary Services, Transmission Losses, and Sales of Surplus Products-Rate Order No. WAPA-174, 56632-56652 [2016-19973]
Download as PDF
<![CDATA[
56632
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
who will eFile a document and/or be
listed as a contact for an intervenor
must create and validate an
eRegistration account using the
eRegistration link. Select the eFiling
link to log on and submit the
intervention or protests.
Persons unable to file electronically
should submit an original and 5 copies
of the intervention or protest to the
Federal Energy Regulatory Commission,
888 First Street NE., Washington, DC
20426.
The filings in the above-referenced
proceeding are accessible in the
Commission’s eLibrary system by
clicking on the appropriate link in the
above list. They are also available for
electronic review in the Commission’s
Public Reference Room in Washington,
DC. There is an eSubscription link on
the Web site that enables subscribers to
receive email notification when a
document is added to a subscribed
docket(s). For assistance with any FERC
Online service, please email
FERCOnlineSupport@ferc.gov or call
(866) 208–3676 (toll free). For TTY, call
(202) 502–8659.
Dated: August 16, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016–19964 Filed 8–19–16; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Rocky Mountain Region Transmission,
Ancillary Services, Transmission
Losses, and Sales of Surplus
Products—Rate Order No. WAPA–174
Western Area Power
Administration, DOE.
ACTION: Notice of order concerning
transmission, ancillary services,
transmission losses, and sales of surplus
products formula rates.
AGENCY:
The Deputy Secretary of
Energy has confirmed and approved
Rate Order No. WAPA–174 and Rate
Schedules L–NT1, L–FPT1, L–NFPT1,
L–UU1, L–AS1, L–AS2, L–AS3, L–AS4,
L–AS5, L–AS6, L–AS7, L–AS9, and L–
M1 placing Loveland Area Projects
(LAP) transmission; Colorado River
Storage Project (CRSP), LAP, and
Western Area Colorado Missouri
Balancing Authority (WACM) ancillary
services; WACM transmission losses,
and LAP sales of surplus products
formula rates of the Western Area Power
Administration (WAPA), Rocky
Mountain Region (WAPA–RMR) into
effect on an interim basis (Provisional
asabaliauskas on DSK3SPTVN1PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Formula Rates). The Provisional
Formula Rates will provide sufficient
revenue to pay all annual costs,
including interest expense, and to repay
applicable investments within the
allowable periods.
DATES: The Provisional Formula Rate
Schedules L–NT1, L–FPT1, L–NFPT1,
L–UU1, L–AS1, L–AS2, L–AS3, L–AS4,
L–AS5, L–AS6, L–AS7, L–AS9, and L–
M1 are effective on the first day of the
first full billing period beginning on or
after October 1, 2016, and will remain
in effect through September 30, 2021,
pending approval by the Federal Energy
Regulatory Commission (FERC) on a
final basis or until superseded.
FOR FURTHER INFORMATION CONTACT: Mr.
Bradley S. Warren, Regional Manager,
Rocky Mountain Region, Western Area
Power Administration, 5555 East
Crossroads Boulevard, Loveland, CO
80538–8986, telephone (970) 461–7201,
or Mrs. Sheila D. Cook, Rates Manager,
Rocky Mountain Region, Western Area
Power Administration, 5555 East
Crossroads Boulevard, Loveland, CO
80538–8986, telephone (970) 461–7211,
email scook@wapa.gov.
SUPPLEMENTARY INFORMATION: The
Deputy Secretary of Energy approved
WAPA–155, which provides the
existing formula Rate Schedules L–NT1,
L–FPT1, L–NFPT1, L–UU1, L–AS1, L–
AS2, L–AS3, L–AS4, L–AS5, L–AS6, L–
AS7, L–AS9, on September 2, 2011 (76
FR 61184).1 Those formula rate
schedules expire on September 30,
2016. WAPA–RMR published a Federal
Register notice (Proposed FRN) on
February 3, 2016 (81 FR 5744),
proposing a change to the forwardlooking transmission rate methodology;
modifications to rate designs under Rate
Schedules L–FPT1, L–AS2, and L–AS3;
clarification of the language in all the
existing rate schedules; and
implementation of a new rate schedule
for sales of surplus products, L–M1. The
Proposed FRN also initiated a public
consultation and comment period and
set forth the date and location of the
public information and public comment
forums. WAPA–RMR held both forums
in Loveland, Colorado, on March 28,
2016, where staff explained the
proposed formula rates, answered
questions, and provided the public with
an opportunity to comment for the
record.
WAPA–RMR modified the forwardlooking transmission rate methodology;
rate designs in Rate Schedules L–FPT1,
1 FERC confirmed and approved WAPA–155 on a
final basis on December 2, 2011, in Docket No.
EF11–10–000. See United States Department of
Energy, Western Area Power Administration, 137
FERC ¶ 62,200.
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
L–AS2, and L–AS3; clarified language
in all the existing rate schedules; and
implemented a new formula rate
schedule for sales of surplus products,
Rate Schedule L–M1. The rate schedules
contain formula-based charges which
will be calculated annually to
incorporate the most recent financial,
load, and schedule information, as
applicable.
By Delegation Order No. 00–037.00A,
effective October 25, 2013, the Secretary
of Energy delegated: (1) The authority to
develop power and transmission rates to
the Administrator of WAPA; (2) the
authority to confirm, approve, and place
such rates into effect on an interim basis
to the Deputy Secretary of Energy; and
(3) the authority to confirm, approve,
and place into effect on a final basis, to
remand, or to disapprove such rates to
FERC. Federal rules (10 CFR part 903)
govern Department of Energy
procedures for public participation in
power and transmission rate
adjustments.
Under Delegation Order Nos. 00–
037.00A and 00–001.00F and in
compliance with 10 CFR part 903 and
18 CFR part 300, I hereby confirm,
approve, and place Rate Order No.
WAPA–174, which provides the
formula rates for LAP transmission;
LAP, CRSP, and WACM ancillary
services; WACM transmission losses;
and LAP sales of surplus products, into
effect on an interim basis. The new Rate
Schedules L–NT1, L–FPT1, L–NFPT1,
L–UU1, L–AS1, L–AS2, L–AS3, L–AS4,
L–AS5, L–AS6, L–AS7, L–AS9, and L–
M1 will be submitted promptly to FERC
for confirmation and approval on a final
basis.
Dated: August 12, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.
Department of Energy
Deputy Secretary
In the Matter of:
Western Area Power Administration, Rocky
Mountain Region, Rate Adjustment for
Transmission, Ancillary Services,
Transmission, Losses, and Sales of Surplus
Products,
Rate Order No. WAPA–174
Order Confirming, Approving, and Placing
Transmission Service, Ancillary Services,
Transmission Losses, and Sales of Surplus
Products Formula Rates Into Effect on An
Interim Basis
The transmission, ancillary services,
transmission losses, and sales of surplus
products formula rates set forth in this order
are established pursuant to section 302 of the
Department of Energy (DOE) Organization
Act (42 U.S.C. 7152). This act transferred to
and vested in the Secretary of Energy the
E:\FR\FM\22AUN1.SGM
22AUN1
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
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 laws,
particularly section 9(c) of the Reclamation
Act of 1939 (43 U.S.C. 485h(c)) and section
5 of the Flood Control Act of 1944 (16 U.S.C.
825s), and other acts that specifically apply
to the projects involved.
By Delegation Order No. 00–037.00A,
effective October 25, 2013, the Secretary of
Energy delegated: (1) The authority to
develop power and transmission rates to the
Administrator of Western Area Power
Administration; (2) the authority to confirm,
approve, and place such rates into effect on
an interim basis to the Deputy Secretary of
Energy; and (3) the authority to confirm,
approve, and place into effect on a final
56633
basis, to remand, or to disapprove such rates
to the Federal Energy Regulatory
Commission. Federal rules (10 CFR part 903)
govern DOE procedures for public
participation in power rate adjustments.
Acronyms/Terms and Definitions
As used in this Rate Order, the
following acronyms/terms and
definitions apply:
Acronym/term
Definition
$/kW-month .....................................
12-cp ...............................................
Dollars per kilowatt per month.
Rolling 12-month average of customers’ loads in excess of applicable Federal Entitlement, coincident with
the Loveland Area Projects transmission system peak.
Automatic Generation Control.
The responsible entity that integrates resource plans ahead of time, maintains load-interchange-generation
balance within a Balancing Authority area, and supports interconnection frequency in real time.
Document that provides requirements for services and clarifies various aspects of the services offered.
The term used for a Balancing Authority area in WAPA’s Open Access Transmission Tariff.
Document that further explains the rate methodologies under Rate Order No. WAPA–174.
Colorado River Storage Project.
The CRSP Transmission Service Provider.
United States Department of Energy.
LAP or CRSP customers taking delivery of long-term firm service under firm electric service contracts,
project use, and special use contracts.
Contracts for the sale of long-term firm LAP and CRSP Federal energy and capacity, pursuant to each
Project’s General Power Marketing and Allocation Criteria (Marketing Plan).
Federal Energy Regulatory Commission.
The energy and capacity delivered to Federal Customers under Firm Electric Service Contracts.
Fryingpan-Arkansas Project.
Fiscal Year, October 1 through September 30.
Loveland Area Projects.
The LAP Transmission Service Provider.
Municipal and Industrial.
Maximum capacity to be delivered each month under Firm Electric Service Contracts. Each monthly entitlement is a percentage of the seasonal contract-rate-of-delivery.
Megawatt. The unit of electrical capacity equal to 1,000 kW or 1,000,000 watts.
An electronic posting system a Transmission Service Provider maintains for transmission access data that
allows all transmission customers to view the data simultaneously.
WAPA’s revised Open Access Transmission Service Tariff, effective April 12, 2013.
A formula rate confirmed, approved, and placed into effect on an interim basis by the Deputy Secretary.
Pick-Sloan Missouri Basin Program.
Pick-Sloan Missouri Basin Program—Western Division.
Rocky Mountain Region.
An entity who administers a transmission tariff and provides transmission service to transmission customers under applicable transmission service agreements.
Volt-Ampere Reactive related to Reactive Supply and Voltage Control.
Variable Energy Resource is one whose output is volatile and variable due to factors beyond direct operations control and, therefore, is not dispatchable.
Western Area Colorado Missouri Balancing Authority.
Western Area Power Administration.
AGC .................................................
Balancing Authority .........................
Business Practices ..........................
Control Area ....................................
Customer Brochure .........................
CRSP ..............................................
CRCM ..............................................
DOE .................................................
Federal Customers ..........................
Firm Electric Service Contracts ......
FERC ...............................................
Federal Entitlements .......................
Fry-Ark .............................................
FY ....................................................
LAP ..................................................
LAPT ...............................................
M&I ..................................................
Monthly Entitlements .......................
MW ..................................................
Open Access Same Time Information System (OASIS).
OATT ...............................................
Provisional Formula Rate ................
P–SMBP ..........................................
P–SMBP—WD ................................
RMR ................................................
Transmission Service Provider .......
VAR .................................................
VER .................................................
WACM .............................................
WAPA ..............................................
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Effective Date
The Provisional Formula Rate
Schedules L–NT1, L–FPT1, L–NFPT1,
L–UU1, L–AS1, L–AS2, L–AS3, L–AS4,
L–AS5, L–AS6, L–AS7, L–AS9, and L–
M1 are effective on the first day of the
first full billing period beginning on or
after October 1, 2016, and will remain
in effect through September 30, 2021,
pending approval by FERC on a final
basis or until superseded.
Public Notice and Comment
WAPA–RMR has followed the
Procedures for Public Participation in
Power and Transmission Rate
Adjustments and Extensions, 10 CFR
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
part 903, in the development of these
formula rates and schedules. The steps
WAPA–RMR took to involve interested
parties in the rate process were:
1. On August 10, 2015, WAPA–RMR
held an informal customer meeting to
discuss changes, updates, and additions
WAPA–RMR was considering
recommending for LAP transmission;
CRSP, LAP, and WACM ancillary
services; WACM transmission losses;
and LAP sales of surplus products. The
meeting was announced through email
notification to all customers, as well as
posting on WAPA–RMR’s Web site for
all interested parties. WAPA–RMR
posted all information presented at the
informal customer meeting, as well as
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
responses to questions asked at the
meeting, on its Web site at https://
www.wapa.gov/regions/RM/rates/Pages/
2017-rate-adjustment.aspx.
2. WAPA–RMR published a Federal
Register notice on February 3, 2016 (81
FR 5744) (Proposed FRN), announcing
the proposed transmission, ancillary
services, transmission losses, and sales
of surplus products formula rates
adjustment, initiating the public
consultation and comment period,
announcing the date and location of the
public information and public comment
forums, and outlining procedures for
public participation.
3. On February 3, 2016, WAPA–RMR
sent a letter to customers and interested
E:\FR\FM\22AUN1.SGM
22AUN1
56634
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
parties providing them with a copy of
the Proposed FRN.
4. On March 28, 2016, WAPA–RMR
held a public information forum in
Loveland, Colorado, where WAPA–RMR
representatives explained the need for
the formula rates adjustment in detail
and answered questions.
5. On March 28, 2016, following the
public information forum, WAPA–RMR
held a public comment forum in
Loveland, Colorado, to provide an
opportunity for customers and other
interested parties to comment for the
record. At this forum, one individual
presented nine comments. Those
comments and WAPA–RMR’s responses
are addressed below.
6. WAPA–RMR received one written
comment letter during the 90-day
consultation and comment period,
which ended on May 3, 2016. The letter
contained several comments, many of
which were also presented during the
comment forum. The comments and
WAPA–RMR’s responses are addressed
below.
All comments received have been
considered in the preparation of this
Rate Order.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Project Descriptions
The Post-1989 General Power
Marketing and Allocation Criteria,
published in the Federal Register on
January 31, 1986 (51 FR 4012),
integrated the resources of the P–
SMBP—WD and Fry-Ark. This
operational and contractual integration,
known as LAP, allowed an increase in
marketable resources, simplified
contract administration, and established
a blended rate for LAP power sales.
WAPA–RMR offers ancillary services
from a combination of LAP generation
resources and CRSP generation
resources.
P–SMBP—WD
The P–SMBP was authorized by
Congress in section 9 of the Flood
Control Act of December 22, 1944 (Pub.
L. 534, 58 Stat. 877, 891). This
multipurpose program provides flood
control, M&I water supply, irrigation,
navigation, recreation, preservation and
enhancement of fish and wildlife, and
hydroelectric power. Multipurpose
projects have been developed on the
Missouri River and its tributaries in
Colorado, Montana, Nebraska, North
Dakota, South Dakota, and Wyoming.
In addition to the multipurpose water
projects authorized by section 9 of the
Flood Control Act of 1944, certain other
existing projects have been integrated
with the P–SMBP for power marketing,
operation, and repayment purposes. The
Colorado-Big Thompson, Kendrick,
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Riverton, and Shoshone Projects were
combined with P–SMBP in 1954,
followed by the North Platte Project in
1959. These projects are known as the
‘‘Integrated Projects’’ of the P–SMBP.
The Riverton Project was reauthorized
as a unit of the P–SMBP in 1970.
Together, the P–SMBP—WD and the
Integrated Projects have 19 power
plants.
There are six power plants in P–
SMBP—WD: Glendo, Kortes, and
Fremont Canyon power plants on the
North Platte River; Boysen and Pilot
Butte power plants on the Wind River;
and Yellowtail power plant on the Big
Horn River. The Colorado-Big
Thompson Project has six power plants:
Green Mountain power plant on the
Blue River is on the Western Slope of
the Continental Divide; and Mary’s
Lake, Estes, Pole Hill, Flatiron, and Big
Thompson power plants along the Big
Thompson River are on the Eastern
Slope of the Continental Divide. The
Kendrick Project has two power plants:
Alcova and Seminoe power plants on
the North Platte River. Power plants in
the Shoshone Project are the Shoshone,
Buffalo Bill, Heart Mountain, and Spirit
Mountain plants on the Shoshone River.
The only power plant in the North
Platte Project is the Guernsey power
plant, also on the North Platte River.
Fry-Ark
Fry-Ark is a trans-mountain diversion
development in southeastern Colorado
authorized by the Act of Congress on
August 16, 1962 (Pub. L. 87–590, 76
Stat. 389, as amended by Title XI of the
Act of Congress on October 27, 1974
(Pub. L. 93–493, 88 Stat. 1486, 1497)).
The Fry-Ark diverts water from the
Fryingpan River and other tributaries of
the Roaring Fork River in the Colorado
River Basin on the Western Slope of the
Rocky Mountains to the Arkansas River
on the Eastern Slope of the Rocky
Mountains. The water diverted from the
Western Slope, together with regulated
Arkansas River water, provides
supplemental irrigation and M&I water
supplies and produces hydroelectric
power. Flood control, fish and wildlife
enhancement, and recreation are other
important purposes of Fry-Ark. The
only generating facility in Fry-Ark is the
Mt. Elbert Pumped-Storage power plant
on the Eastern Slope.
CRSP
CRSP was authorized by the Colorado
River Storage Project Act, ch. 203, 70
Stat. 105, (43 U.S.C. 620) on April 11,
1956. The project provides water-use
developments for states in the Upper
Basin (Colorado, New Mexico, Utah,
and Wyoming) while still maintaining
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
water deliveries to the states of the
Lower Basin (Arizona, California, and
Nevada) as required by the Colorado
River Compact of 1922. Generation from
CRSP and its participating projects,
Dolores and Seedskadee, and from the
Collbran and Rio Grande Projects have
been marketed as the Salt Lake City
Area/Integrated projects (SLCA/IP) since
October 1, 1987. The CRSP Project has
five plants: Blue Mesa, Crystal, and
Morrow Point on the Gunnison River,
Flaming Gorge located on the Green
River, and Glen Canyon located on the
Colorado River; Dolores Project has two
plants: Towaoc located on the Towaoc
Canal and McPhee located on the
Dolores River; Seedskadee Project has
one plant: Fontenelle located on the
Green River; Collbran Project has two
plants: Upper and Lower Molina located
on the Cottonwood and Plateau Creeks
respectively; and the Rio Grande Project
has one plant: Elephant Butte located on
the Rio Grande River.
Transmission, Ancillary Services,
Transmission Losses, and Sales of
Surplus Products
WAPA–RMR is implementing revised
formula rates for transmission, ancillary
services, and transmission losses under
Rate Schedules L–NT1, L–FPT1, L–
NFPT1, L–UU1, L–AS1, L–AS2, L–AS3,
L–AS4, L–AS5, L–AS6, L–AS7, and L–
AS9 and a new formula rate for sales of
surplus products under Rate Schedule
L–M1. The formula rates are each
designed to recover the annual costs of
providing the services, as applicable.
Existing and Provisional Formula Rates
The existing formula rates contained
in Rate Schedules L–NT1, L–FPT1, L–
NFPT1, L–UU1, L–AS1, L–AS2, L–AS3,
L–AS4, L–AS5, L–AS6, L–AS7, and L–
AS9 expire on September 30, 2016.
Several of these rate schedules contain
formula rates that were calculated each
year to include the most recent
financial, load, and schedule
information, as applicable. The new rate
schedules continue with this approach.
The charges under the applicable
formula rates are calculated annually in
early summer; therefore, WAPA–RMR
was unable to provide the specific
charges for FY 2017 during the rate
process and in this Rate Order. Once
calculated, the FY 2017 charges will be
posted to WAPA’s Web sites at https://
www.wapa.gov/regions/RM/rates/Pages/
Transmission-ancillary.aspx and
https://www.wapa.gov/regions/CRSP/
rates/Pages/Tariffs.aspx.
Certification of Rates
WAPA’s Administrator certified the
Provisional Formula Rates for LAP
E:\FR\FM\22AUN1.SGM
22AUN1
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
56635
LAP Transmission Service Discussion
In accordance with WAPA’s OATT,
LAPT offers Network Integration
Transmission Service (Network Service)
and Firm and Non-Firm Point-to-Point
Transmission Services. These services
include the transmission of energy to
points of delivery on the LAP
interconnected high-voltage system,
which is comprised of transmission
lines, substations, and related facilities.
Transmission service for the LAP
Federal Customers is bundled in the
LAP Firm Electric Service (FES) rate.
The methodology used for formula
rate development and the
implementation process are described
below.
The annual transmission cost is the
ratio of gross investment cost for
transmission facilities to gross
investment cost for all facilities
multiplied by the applicable total
annual costs, which include operations
and maintenance, interest, and
depreciation expenses. The calculation
is:
The gross investment cost for
transmission facilities will be
determined by an analysis of the LAP
Transmission System. Each LAP facility
is classified by function: Transmission,
sub-transmission, or generation-related.
The facilities identified as performing
the function of transmission include
transmission lines normally operated in
a continuously-looped manner and the
associated substations and switchyard
facilities. In the LAP Transmission
System, these are primarily the 115-kV
and above facilities. In addition, a
portion of the communication and
maintenance facilities is included in the
investment cost for transmission. Only
the investment costs of the facilities
identified as ‘‘transmission,’’ including
allocated costs for communication and
maintenance facilities, are used in
developing the annual transmission
cost. The investment costs of facilities
identified as ‘‘sub-transmission’’ are
excluded from the ATRR, as the LAP
sub-transmission system is used
primarily for delivery of Federal
Entitlements to Federal Customers. If a
transmission customer, who does not
have an FES agreement with LAP,
requires the use of the sub-transmission
system, an additional facility-use charge
will be assessed. Fry-Ark facilities are
considered generation-related and,
therefore, are excluded from the ATRR.
The transmission expenses for
increasing transmission system capacity
will continue to include payments made
to others for their systems’
augmentation of the LAP Transmission
System. Miscellaneous charges and
credits will include, but not be limited
to, Unreserved Use and facility charges
for transmission facility investments
included in the revenue requirement.
Since the LAP transmission rates
include LAP’s Scheduling, System
Control, and Dispatch Service (SSCD
Service) costs, the revenue collected by
WACM for providing this service is
included as a credit to the ATRR, as
shown above.
removing the additional twelve months
from the projection, thus only having to
true-up the projected costs for the fourmonth period of the current year. This
method will allow WAPA–RMR to more
accurately match cost recovery with cost
incurrence. This method will be a
change in the manner in which the
inputs for the charge are developed,
rather than a change to the formula rate
itself.
When actual cost information for a
year becomes available, WAPA–RMR
will continue to calculate the actual
revenue requirement. Revenue collected
in excess of WAPA–RMR’s actual
revenue requirement will be included as
a credit in the ATRR in the following
year. Similarly, any under-collection of
the revenue requirement will be
recovered in the following year. This
true-up procedure ensures WAPA–RMR
recovers no more or no less than the
actual transmission costs for the year.
For example, as the remaining four
months of FY 2016 actual financial data
becomes available during FY 2017, the
under-collection or over-collection of
revenue for FY 2016 can be determined.
When the FY 2018 charge is calculated,
it will include an adjustment for
revenue under-collection or overcollected in FY 2016.
Annual operation and maintenance
expenses are projected using budgeted
amounts. Depreciation and interest
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Effective October 2011, WAPA–RMR
used a forward-looking transmission
rate methodology to calculate the ATRR
to recover transmission expenses and
investments on a current basis rather
than a historical basis. As part of this
methodology, WAPA–RMR projected
transmission costs two years into the
future, relying on current year actuals
for approximately the first eight months
of the year and projecting the remaining
four months of the year plus twelve
additional months. Western has
determined, however, estimating the
additional twelve months introduced
unnecessarily large true-ups. As a result,
starting in October 2016, WAPA–RMR is
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
WAPA–RMR is not changing the
calculation of the annual transmission
revenue requirement (ATRR), which is
applicable to both Network and Pointto-Point transmission services. The
calculation for the ATRR is:
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.017</GPH>
Forward-Looking Transmission Rate
Annual Transmission Revenue
Requirement
EN22AU16.016</GPH>
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Transmission; CRSP, LAP and WACM
Ancillary Services; WACM
Transmission Losses; and LAP Sales of
Surplus Products under Rate Schedules
L–NT1, L–FPT1, L–NFPT1, L–UU1, L–
AS1, L–AS2, L–AS3, L–AS4, L–AS5, L–
AS6, L–AS7, L–AS9, and L–M1 are the
lowest possible rates consistent with
sound business principles. The
Provisional Formula Rates were
developed following administrative
policies and applicable laws.
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
Just like the ATRR, the capacity used
in this formula is determined once
annually and is used to calculate the
Firm Point-to-Point Transmission
Service charges for the entire year.
Non-Firm Point-to-Point Transmission
Service
Penalty Rate for Unreserved Use of
Transmission Service (Unreserved Use)
penalty for a single hour of Unreserved
Use will be based upon the charge for
daily Firm Point-to-Point Transmission
Service. The Unreserved Use penalty for
more than one assessment for a given
duration (e.g., daily) will increase to the
next longest duration (e.g., weekly). The
Unreserved Use penalty charge for
multiple instances of Unreserved Use
(e.g., more than one hour) within a day
will be based on the charge for daily
Firm Point-to-Point Transmission
Service. Multiple instances of
Unreserved Use isolated to one calendar
week will result in a penalty based on
the charge for weekly Firm Point-toPoint Transmission Service. The penalty
charge for multiple instances of
Unreserved Use during more than one
week during a calendar month will be
WAPA–RMR has made no changes to
the Unreserved Use Penalties rate,
under Rate Schedule L–UU1. LAP will
continue to assess Unreserved Use
penalties against a transmission
customer who has not secured reserved
capacity or exceeds their reserved
capacity at any point of receipt or any
point of delivery. Unreserved Use may
also include a transmission customer’s
failure to curtail transmission when
requested.
LAP transmission customers who
engage in Unreserved Use are assessed
a penalty charge of 200% of LAP’s
approved transmission service charge
for Firm Point-to-Point Transmission
Service, as well as, any related ancillary
services as follows: The Unreserved Use
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
The formula rate for Firm Point-toPoint Transmission service, under Rate
Schedule L–FPT1, has been modified in
order to clarify the denominator
includes the reserved capacity for Firm
WAPA–RMR has made no changes to
the Non-Firm Point-to-Point
Transmission Service formula rate,
under Rate Schedule L–NFPT1. It will
continue to equal the Firm Point-toPoint Transmission Service formula
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
Point-to-Point Transmission Service,
plus a 12-month average capacity value
for Network Service (including Federal
Entitlements) rather than stating it
includes the ‘‘LAP Transmission System
total load.’’
The Provisional Formula Rate is as
follows:
rate. The charge for Non-Firm Point-toPoint Transmission Service may be
discounted based on market conditions,
but will never be higher than the Firm
Point-to-Point Transmission Service
charge.
The Provisional Formula Rate for
Non-Firm Point-to-Point Transmission
Service is as follows:
based on the charge for monthly Firm
Point-to-Point Transmission Service.
Ancillary Services Discussion
In accordance with WAPA’s OATT,
ancillary services are needed with
transmission service to maintain
reliability inside and among the Control
Areas affected by the transmission
service. CRCM and LAPT currently
provide seven ancillary services under
the OATT: Scheduling, System Control
& Dispatch Service (SSCD Service);
Reactive Supply & Voltage Control
Support Service (VAR Support Service);
Regulation and Frequency Response
Service (Regulation Service); Energy and
Generator Imbalance Services; and
Operating Reserves—Spinning Reserve
and Supplemental Reserve Services.
The Provisional Formula Rates for these
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.020</GPH>
Firm Point-to-Point Transmission
Service
Network Integration Transmission
Service
WAPA–RMR has made no changes to
the Network Service formula rate, under
Rate Schedule L–NT1. The monthly
charge for Network Service will
continue to be the product of onetwelfth of the ATRR times the
transmission customer’s load-ratio
share.
The Provisional Formula Rate is as
follows:
EN22AU16.019</GPH>
current year and by removing current
year retirements.
The customer’s load-ratio share is the
ratio of its Network Service load to the
LAP Transmission System total load at
the LAP system peak. This is calculated
on a rolling 12-month basis (12
coincident peak average or 12-cp).
asabaliauskas on DSK3SPTVN1PROD with NOTICES
expenses are projected using historical
amounts modified to account for
projected additions to plant in-service
in the current year. Plant in-service
expenses are projected using historical
amounts plus an estimate for projects
anticipated to be booked to plant in the
EN22AU16.018</GPH>
56636
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
56637
with the Control Area operator, and the
transmission customer is required to
purchase.
The other five ancillary services,
Regulation Service, Energy and
Generator Imbalance Services, and
Operating Reserves—Spinning Reserve
and Supplemental Reserve Services, are
services the Transmission Service
Provider must offer when transmission
service is used to serve load within the
Transmission Service Provider’s Control
Area. The transmission customer must
purchase these ancillary services from
the Transmission Service Provider,
acquire the services from a third party,
or self-supply the services.
The annual cost of scheduling
personnel and related costs includes
annual costs associated with
transmission scheduling (i.e., personnel,
facilities, equipment and software, as
well as credits representing fees for
agent services).
The number of schedules per year is
the yearly total of daily tags which
result in a schedule, excluding loss
schedules.
WAPA–RMR allocates the charge of
each schedule equally among all
Transmission Service Providers, both
Federal and non-Federal, listed on the
schedule who are inside WACM. The
Federal transmission segments are
exempt from invoicing, as costs for
these segments continue to be included
in the Federal (LAP and CRSP)
Transmission Service rates.
Federal generation, but also the annual
cost of other resources used to provide
VAR Support Service and any
applicable revenue credits related to
WACM providing service. The wording
of the denominator has been changed in
order to clarify the denominator
includes all ‘‘transmission transactions’’
requiring VAR Support Service rather
than stating it includes ‘‘load in
WACM’’ requiring VAR Support
Service.
The Provisional Formula Rate for
VAR Support Service is as follows:
The annual revenue requirement for
VAR Support Service equals revenue
requirement for generation × % of
resource capacity used for VAR Support
Service (1 minus power factor) plus
other resources, e.g., energy and
transmission costs for condensing
Federal generating units minus
applicable revenue credits related to
WACM providing service.
The transmission transactions
requiring VAR Support Service equals
the transmission capacity use of the
Federal transmission systems; including
Point-to-Point and Network
Transmission Services on LAP and
CRSP transmission systems.
The unit charge is applicable to all
LAP and CRSP transmission
transactions in excess of any Federal
Entitlements and to any non-Federal
Transmission Service Providers for
which WACM provides service. WACM
will charge based on the rate applicable
under L–AS2 and any resulting revenue
will be treated as a revenue credit
within the L–AS2 rate design. Federal
Entitlements pay the same unit charge
for this service, but the charge remains
bundled in the LAP and CRSP FES
rates.
WAPA–RMR is eliminating
previously granted LAP and CRSP
transmission service VAR Support
Service charge exemptions, unless the
Federal transmission customer has
generating resources capable of
providing VARs directly connected to a
Federal transmission facility owned and
operated by CRSP and/or LAP and has
executed a contract stipulating all the
provisions of their self-supply.
Including the previously exempted
capacity in the VAR Support Service
denominator puts downward pressure
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
WAPA–RMR has made no changes to
the formula rate for SSCD Service,
under Rate Schedule L–AS1. The
Provisional Formula Rate for SSCD
Service is as follows:
on the VAR Support Service rate, which
will benefit the Federal transmission
customers who are currently paying a
higher rate. Customers who have
previously received an exemption will
now pay for VAR Support Service, but
their rate will be significantly lower
than those who have paid for the service
to date.
Regulation and Frequency Response
Service
The formula rate for Regulation
Service, under Rate Schedule L–AS3,
has been modified so the denominator
includes wind and solar capacity
multipliers that will be applied to the
installed nameplate capacity value of
wind and solar generators. The basis for
application of the multiplier is the
growth WACM has seen in VERs,
requiring WAPA–RMR to purchase
additional regulation and frequency
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.022</GPH>
Reactive Supply and Voltage Control
Service From Generation or Other
Sources Service
The formula rate for VAR Support
Service, under Rate Schedule L–AS2,
has been modified. The numerator has
been changed to include not only LAP
and CRSP’s revenue requirements for
Scheduling, System Control, and
Dispatch Service
EN22AU16.021</GPH>
asabaliauskas on DSK3SPTVN1PROD with NOTICES
services are designed to recover the
costs incurred for providing each of the
services. The Provisional Formula Rates
are also applicable to WACM when, as
the Control Area operator, WACM
provides services as required or as
requested by Transmission Service
Providers and Load Serving Entities.
The first two of these seven ancillary
services, SSCD Service and VAR
Support Service, are services the
Transmission Service Provider is
required to provide, or offer to arrange
56638
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
wind VERs required 225% more
regulation and frequency response
services than load and traditional
generation require. WACM does not
have a significant amount of solar
generation impacting its Balancing
Authority area and, therefore, does not
have sufficient solar generation data
available to perform a thorough analysis
at this time. Therefore, WAPA–RMR
will identify a solar capacity multiplier
of 100% until such a time a different
value is warranted, i.e., if and when
solar VERs become more prevalent in
the WACM footprint.
The Provisional Formula Rate for
Regulation Service is as follows:
The total annual revenue requirement
for Regulation Service includes such
costs as LAP and CRSP plant costs,
purchases of regulation products,
purchases of power in support of the
generating units’ ability to regulate,
purchases of transmission for regulating
units who are trapped geographically
inside another Balancing Authority area,
purchases of transmission required to
relocate energy due to regulation/load
following issues, and lost on-peak sales
opportunities resulting from the
requirement to generate at night to
permit units to have ‘down’ regulating
capability.
The total load for Regulation Service
equals load inside WACM requiring
Regulation Service, plus the installed
nameplate capacity of wind generators
serving load inside WACM times the
wind capacity multiplier, plus the
installed nameplate capacity of solar
generators serving load inside WACM
times the solar capacity multiplier. The
capacity multipliers will be updated
yearly to coincide with the normal
annual formula rate updates (each
October 1).
The capacity required for regulation is
subject to re-evaluation every year.
Historically, the regulation requirement
from Federal generators had been 75
MW (55 MW from LAP and 20 MW from
CRSP). Starting in the FY 2014 rate
design, following the CRSP transmission
system being reconfigured into WACM,
WAPA–RMR and WAPA–CRSP agreed
to assign the regulation requirement to
LAP and CRSP based on a ratio of LAP,
CRSP, and WACM individual contract
requirements to the total of all
requirements. Using this ratio share
methodology, to annually update the
ratio shares, allows LAP and CRSP to
each supply resources sufficient to
cover their own requirement (FES and
transmission sales), plus a portion of
WACM’s requirement (Balancing
Authority agreements), with LAP being
capped at 55 MW and CRSP being
capped at 40 MW—the historical
commitment from each Project. In
addition, WAPA–RMR made changes
within the rate design to assign only the
proper share of each Project’s plant
costs, and any applicable purchases and
transmission costs, to the LAP and
CRSP Federal Entitlements. This change
ensures the Federal Entitlements are not
being improperly assigned costs related
to WAPA–RMR’s purchase of additional
regulation and frequency response
services needed for VERs or increased
sales of transmission service. The
methodology for determining annual
plant costs is unchanged. First, the
annual costs for Federal plants used to
regulate is calculated by multiplying the
net plant costs by the annual fixed
charge rate for generation. Then, the
annual cost per unit of capacity for
regulating plants is calculated by
dividing the annual costs for regulating
plants by the capacity of those plants.
Next, the portion of the total annual
plant costs to be recovered in the
Regulation Service rate is calculated by
multiplying the annual unit cost by the
amount of capacity required for
regulation from those Federal plants.
The analysis to determine the
capacity multipliers will be completed
on a monthly basis for WAPA–RMR to
determine a 12-month average. WAPA–
RMR will use the most current analysis
data available, typically July of the prior
year to June of the current year, for the
annual formula rate updates. The
capacity multipliers will be posted to
the Web sites along with the annual
charges.
The formula rate for Regulation
Service has two different applications:
1. Load-based Assessment: The charge
is assessed on an entity’s auxiliary load
(total metered load less applicable
Federal Entitlements) and on the
amount stated in any Balancing
Authority or other transmission service
agreements. The charge is also applied
to the installed nameplate capacity of all
VER, including wind and solar
generators, serving load inside the
WACM Control Area, multiplied by the
applicable annually-calculated capacity
multiplier.
2. Self-provision Assessment: WAPA–
RMR allows entities with AGC to selfprovide for all or a portion of their
loads. Entities with AGC are known as
sub-Balancing Authorities and must
meet various criteria, as listed in the
rate schedule.
WACM does not regulate for the
difference between the output of a
variable generator located inside the
WACM Control Area and a delivery
schedule from a generator serving load
located outside the WACM Control
Area. In addition, WACM may allow
entities to self- or third-party supply
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.023</GPH>
asabaliauskas on DSK3SPTVN1PROD with NOTICES
response services. WAPA–RMR
developed a ‘‘Regulation Analysis’’ tool
that allows WAPA–RMR to see the
hourly impacts of both load and
traditional generation and VERs on
WACM and determine the amount of
regulation and following resource
consumption. For the period of July
2014–June 2015, the tool indicated that
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
their regulation requirement. As such,
Rate Schedule L–AS3 will continue to
include the following ‘‘alternative
arrangements’’:
Exporting Variable Generator
Requirement
WACM does not provide Regulation
Service to variable resources inside the
WACM Control Area which are not used
to serve load inside the WACM Control
Area. An entity that exports the output
from a variable generator to another
Balancing Authority will be required to
dynamically meter or dynamically
schedule that resource out of WACM to
another Balancing Authority unless
arrangements, satisfactory to WACM,
are made for that entity to acquire this
service from a third party or self-supply
(as outlined below).
Self- or Third-Party Supply
WACM may allow an entity to supply
some or all of its required regulation, or
contract with a third party to do so. This
entity must have revenue quality
metering at every load and generation
point, accurate as defined by North
American Electric Reliability
Corporation (NERC), to include MW
flow data availability at 6-second (or
smaller) intervals. WACM will evaluate
the entity’s metering,
telecommunications, and regulating
resource, as well as the required level of
regulation, and determine whether the
entity qualifies to self-supply under this
provision. If approved, the entity is
required to enter into a separate contract
with WACM which will specify the
terms of the self-supply agreement.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Imbalance Services
WAPA–RMR has made no changes to
the Energy Imbalance Service or
Generator Imbalance Service formula
rates, under Rate Schedules L–AS4 and
L–AS9.
Energy Imbalance
WAPA–RMR calculates energy
imbalances and assesses penalties based
on a three deviation band structure as
follows:
1. An imbalance of less than or equal
to 1.5 percent of metered load (or 4 MW,
whichever is greater) for any hour is
settled financially at 100 percent of the
WACM weighted average hourly energy
price for that hour.
2. An imbalance between 1.5 percent
and 7.5 percent of metered load (or 4 to
10 MW, whichever is greater) for any
hour is settled financially at 90 percent
of the WACM weighted average hourly
energy price when net energy scheduled
exceeds metered load or 110 percent of
the WACM weighted average hourly
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
energy price when net energy scheduled
is less than metered load.
3. An imbalance greater than 7.5
percent of metered load (or 10 MW,
whichever is greater) for any hour is
settled financially at 75 percent of the
WACM weighted average hourly energy
price when net energy scheduled
exceeds metered load or 125 percent of
the WACM weighted average hourly
energy price when net energy scheduled
is less than metered load.
The term ‘‘metered load’’ is defined to
be ‘‘metered load adjusted for losses.’’
Also, each hour stands on its own; there
is no monthly netting. Hourly
accounting encourages the customer to
more closely follow its load.
Generator Imbalance
Generator Imbalance Service applies
to all:
1. Jointly-owned generators (unless
arrangements are made to allocate actual
generation to each individual owner),
2. Variable generators (unless
arrangements are made to assess the
variable generator under Rate Schedule
L–AS4), and
3. Non-variable generators serving
load outside the WACM Control Area.
An entity’s solely-owned non-variable
generator inside the WACM Control
Area will be included in the entity’s
Energy Imbalance Service calculation.
The formula rate and pricing for
Generator Imbalance Service will be
identical to the formula rate for Energy
Imbalance Service, with the following
exceptions:
1. Bandwidths will be calculated as a
percentage of metered generation, since
there is no load.
2. Variable generators will be exempt
from the outer bandwidth. All
imbalances greater than 1.5 percent of
metered generation are subject only to a
10 percent penalty.
Penalty Elimination
In any hour, WAPA–RMR may charge
a customer a penalty for either
Generator Imbalance Service or Energy
Imbalance Service, but not both.
Minimum Bandwidth
WAPA–RMR has concluded that strict
imposition of FERC Order 890
parameters for minimum bandwidth (2
MW) is unnecessarily restrictive to
small customers. LAP’s Federal
Entitlement may be the only resource a
small customer has available for
following load and staying within
prescribed bandwidths. WAPA–RMR
requires customers to schedule their
Federal Entitlements 48-hours in
advance, which is unique in the
industry. With weekends and holidays,
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
56639
this schedule may have to be submitted
several days in advance. This situation
is exacerbated by the requirement
scheduling be done in whole MWs,
while loads (and imbalance) are
measured to the kilowatt. Due to these
circumstances, WAPA–RMR will not
start assessing penalties after a 2 MW
deviation and will continue to employ
a 4 MW minimum bandwidth. No costs
are being passed to customers with
larger loads due to the larger minimum
bandwidth. WAPA–RMR has employed
this practice, with FERC approval, since
March 2004.1
Settlement and Pricing
All imbalances will be settled
financially using WACM pricing for
each hour. The imbalance for each
applicable entity shall be totaled and
netted to determine WACM’s aggregate
energy condition. The sign of the
aggregate energy condition for WACM
will determine whether sale or purchase
pricing will be used in all bandwidths
(surplus hours will use sale pricing, and
deficit hours will use purchase pricing).
Expansion of the Bandwidth
Expansion of the bandwidth may be
allowed during the following instances:
1) response to the loss of a physical
resource and 2) during transition of
large base-load thermal resources
(capacity greater than 200 MW) between
off-line and on-line following a reserve
sharing group response, when the unit
generates less than the predetermined
minimum scheduling level. Details are
as follows:
1. WAPA–RMR will expand the
bandwidth during an event established
by a WAPA-recognized reserve-sharing
group, such as the Rocky Mountain
Reserve Group. A response made by a
member of the reserve group will be
accounted for by an after-the-fact
schedule. Normally, these events are 1–
2 hours in duration. Since such events
are accounted for by after-the-fact
schedules, no expansion will be
necessary for the entity receiving the
response. The expanded bandwidth will
apply to the customer who increased
generation in response to the event and
will be based on the magnitude of that
customer’s generation response.
2. During transition of large base-load
thermal resources (capacity greater than
200 MW) between off-line and on-line
following a reserve sharing group
response, WAPA–RMR may expand the
bandwidth (eliminate all penalties)
1 FERC’s initial confirmation and approval was in
Docket No. EF04–5182–000. See United States
Department of Energy, Western Area Power
Administration, 110 FERC ¶ 62,084 (January 31
2005).
E:\FR\FM\22AUN1.SGM
22AUN1
56640
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
during hours in which the unit
generates less than the predetermined
minimum scheduling level. WAPA–
RMR may not have access to
information necessary to determine
these hours for some generators and will
not have access to information on events
for reserve sharing groups outside
WACM. Customers should request
bandwidth expansion in hours in which
they believe it to be warranted. WAPA–
RMR may request additional
information for its decision whether to
grant the request. Bandwidth will not be
expanded when the customer’s ramping
services have been acquired by another
entity.
Balancing Authority Operating
Constraints
WAPA–RMR reserves the right to
offer no credit for Imbalance Service
over-deliveries during times of WACM
operating constraints, such as ‘‘mustrun’’ hydrologic conditions, or times
when WACM cannot dispose of surplus
energy. Due to the unpredictable nature
of hour-to-hour energy imbalances and
the very short notice for disposition of
over deliveries, WACM may experience
some hours of zero value sales and may
eliminate credits in these hours.
If WACM is unable to dispose of the
entire net over-delivery and the
operating criteria for the balancing
authority are not met, reliability
oversight agencies, such as the NERC or
the Western Electricity Coordinating
Council may charge WACM with
violating applicable standards. In these
cases, WAPA–RMR reserves the right to
eliminate credit to customers and
require customers to share in any costs
incurred as a result of such violations.
Also, there may be conditions under
which customers who under-deliver
may share in any costs incurred by
WAPA–RMR as a result of violations
asserted by reliability oversight
agencies.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Operating Reserves—Spinning and
Supplemental Reserve Services
WAPA–RMR has made no changes to
the Operating Reserve Services formula
rates, under Rate Schedules L–AS5 and
L–AS6. LAPT and WACM have no
Reserves available for sale. At a
customer’s request, WAPA–RMR will
purchase and pass-through the cost of
Operating Reserves, plus the cost of any
activation energy, plus a fee for
administration. The customer will be
responsible for providing the
transmission to deliver the Operating
Reserves purchased.
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Transmission Losses Service Discussion
WAPA–RMR has made no changes to
the Transmission Losses Service
formula rate, under Rate Schedule L–
AS7. WACM provides Transmission
Losses Service to all Transmission
Service Providers who market
transmission inside the WACM Control
Area. Transmission losses are assessed
for all real-time and prescheduled
transactions on transmission facilities
inside the WACM Control Area.
Customers may settle financially or with
energy. The pricing for this service will
be the WACM weighted average hourly
purchase price.
LAP Marketing Service Discussion
WAPA–RMR has implemented a new
LAP Marketing rate schedule, L–M1,
applicable to the sale of LAP surplus
energy and capacity products. The
schedule includes reserves, regulation,
and frequency response. If LAP surplus
products are available, the charge will
be determined based on market rates,
plus administrative costs. The customer
will be responsible for acquiring
transmission service necessary to
deliver the product(s). This rate
schedule is not applicable to
transmission service and therefore, is
not provided through WAPA’s OATT.
Rate Schedule Discussion
Editorial changes have been made to
the rate schedules for better clarification
and to ensure greater consistency
between WAPA’s regions and the
OATT, as applicable. In addition, the
rate schedules will no longer include
the unit charge(s) and be updated each
year. Annual charges will instead be
posted on WAPA’s Web sites listed
above under ‘‘Provisional Formula
Rates’’ and on the LAPT and CRCM
OASIS Web sites.
Comments
WAPA–RMR received multiple
comments during the public
consultation and comment period.
Comments have been paraphrased
where appropriate, without
compromising the meaning of the
comments.
Comment 1: Customer commented
they are supportive of the following
proposals: (1) Leave unchanged the
existing formula rate for calculating the
ATRR; (2) shorten the forward-looking
transmission rate projection period; (3)
incorporate minor edits to the network
formula rate schedule; (4) modify the
denominator for Firm and Non-firm
Point-to-Point transmission service; (5)
incorporate minor edits to the
Transmission Losses Service formula
rate schedule; (6) not modify the
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
Unreserved Use formula rate and to
make minor edits to the formula rate
schedule; (7) not modify the SSCD
Service formula rate and to make minor
edits to the formula rate schedule; and
(8) leave unchanged the Energy
Imbalance, Generator Imbalance, and
Spinning and Supplemental Reserve
Services formula rates.
Response 1: WAPA–RMR
acknowledges the Customer’s support of
these proposals.
Comment 2: Customer commented
they support WAPA–RMR’s proposal
regarding the Transmission Losses
Service rate; however, customer
recommends WAPA–RMR perform a
transmission loss study if the latest loss
study was performed more than five
years ago. Customer also recommends
WAPA–RMR perform any loss study
through a formal public process.
Response 2: This comment regarding
the loss study is outside the scope of
this rate process, considering WAPA–
RMR’s formula rate schedule does not
address the method for calculating the
loss rate or the process for determining
the loss rate, but rather only the method
in which WACM is to be compensated
for providing the losses. However,
WAPA–RMR does perform loss studies
periodically. In fact, several months
ahead of this rate process, due to
various changes within the WACM
Control Area, WAPA–RMR began
conducting a loss study to determine the
appropriate loss rate to be in effect
starting October 1, 2016. WAPA–RMR
has shared the methodology and the
result of this loss study with its
customers; however, WAPA–RMR no
plans to conduct formal public
processes in order to conduct loss
studies and implement loss rates.
Comment 3: Customer commented
they do not support WAPA–RMR’s
proposed changes to the VAR Support
Service rate, as WAPA–RMR has not
provided the underlying data to support
the rate. They would like details of the
costs and the methodology to which
those costs are assigned to WAPA–
RMR’s FES customers and to WAPA–
RMR’s transmission customers.
Specifically, the customer asked
whether: (1) The denominator includes
all, or a portion of, CRSP long-term
point-to-point reservations supporting
hydropower, Customer Displacement
Power (CDP), and Western Replacement
Power (WRP) deliveries; (2) the annual
maximum Contract Rate of Delivery
(CROD) for LAP FES deliveries is a
component of the VAR Support Service
denominator; and (3) whether the
Network Service load will be derived
from prior year actuals or will it be
derived from a forecast of the rate year?
E:\FR\FM\22AUN1.SGM
22AUN1
56641
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
WAPA–RMR did not have all the
applicable annual data necessary to
update the formulas until the June-July
timeframe for the upcoming fiscal year
rate, WAPA–RMR was not able to
include data for the FY 2017 rates in the
proposed formulas during the rate
process. In order to provide the
Customer with the requested details,
Response 3: Since WAPA–RMR is
seeking approval of formula rates for
services previously approved, with the
exception of the new LAP Marketing
formula rate for the Sales of Surplus
Products, WAPA–RMR focused on
highlighting the proposed changes to
the formulas of those previously
approved formula rates. Also, since
WAPA–RMR has prepared the table
below using the FY 2016 rate data, since
data for the FY 2017 rate was not yet
available, with modifications to the
numerator to include the addition of the
‘‘Other Resources’’ and to the
denominator in order to demonstrate
how the elimination of the exemptions
will impact the rate, as proposed.
REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION AND OTHER SOURCES SERVICE
[Example FY 2017 rate design using FY 2016 rate data]
FY 17
example
FY 16
% change
Revenue Requirement
LAP Annual Fixed Charge Rate ..................................................................................................
Total Net LAP Generation Plant Costs .......................................................................................
Annual Cost of LAP Generation ..................................................................................................
LAP Capacity Used for VAR (1 minus power factor) ..................................................................
LAP Plant Costs for VAR ............................................................................................................
SLCA/IP Annual Fixed Charge Rate ...........................................................................................
17.425%
$344,385,364
$60,010,711
5.984%
$3,590,825
24.84%
17.425%
$344,385,364
$60,010,711
5.984%
$3,590,825
24.84%
0
0
0
0
0
0
Total Net SLCA/IP Generation Plant Costs .........................................................................
Annual Cost of SLCA/IP Generation ...........................................................................................
SLCA/IP Capability Used for VAR (1 minus power factor) .........................................................
SLCA/IP Plant Costs for VAR .....................................................................................................
Other Resources: Condensing *NEW .........................................................................................
Revenue from VAR Support for FY 2014 non-firm PTP .............................................................
Revenue from WACM Transactions *NEW .................................................................................
Annual VAR Support Revenue Requirement ..............................................................................
$177,435,000
$44,072,729
5.670%
$2,498,924
$446
¥$842,233
¥$0
$5,247,962
$177,435,000
$44,072,729
5.670%
$2,498,924
$0
¥$842,233
¥$0
$5,247,516
0
0
0
0
100
0
0
0.01
Transmission Transactions Requiring VAR Support (kW)
LAP FES (12-mo avg of CROD) .................................................................................................
LAPT ............................................................................................................................................
CRSP FES (CDP, WRP, merchant) ............................................................................................
CRCM ..........................................................................................................................................
582,231
670,622
4,758,030
1,025,188
582,231
314,744
880,507
903,188
0
113
440
14
Total Transmission Transactions Requiring VAR Support (kW), * INCLUDING ELIMINATED EXEMPTIONS .....................................................................................................
7,036,071
2,680,670
163
$0.066
$0.163
¥62
Rate
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Monthly Rate/kW-mo ...................................................................................................................
Based on customer feedback, and to
avoid confusion, rather than including
the non-Federal Transmission Service
Provider’s capacity usage as another
component of the denominator as
WAPA–RMR proposed, if WACM, as the
Control Area operator, supplies any
VAR Support on behalf of a non-Federal
Transmission Service Provider, WACM
will assess charges based on the unit
rate applicable under L–AS2 and the
resulting revenue will instead be treated
as a revenue credit within the L–AS2
rate design in a subsequent year. As
such, WAPA–RMR has changed the
denominator to now read ‘‘Transmission
Transactions that Require VAR Support
Service (kW).’’ The denominator will
continue to include only LAPT and
CRCM’s transmission transactions, both
point-to-point and Network Service,
including CRSP’s FES, CDP, and WRP
deliveries and LAP’s FES deliveries. It
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
will continue to be based on LAPT and
CRCM’s Network 12-month coincident
peak (12cp) values from the most recent
billing month available (normally May),
and LAPT and CRCM’s total point-topoint reservations expected to be in
place during the rate year.
Comment 4: Customer recommends
WAPA–RMR provide additional
information and an example regarding
the component in the denominator
‘‘Transmission Capacity Usage by Other
Transmission Service Providers inside
WACM.’’ Customer seeks to better
understand how third party
Transmission Service Providers are a
part of the VAR Support Service rate for
a service WAPA–RMR proposes they are
providing only for the LAPT and CRCM
transmission systems located within the
WACM Control Area. Customer also
requests additional information
regarding how WACM may assess VAR
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
Support Service charges to
Transmission Service Providers located
in the Control Area found to not be
providing sufficient VAR support.
Response 4: As discussed in the
Proposed FRN and in the Customer
Brochure, WACM, as the Control Area
operator, is not currently charging any
non-Federal Transmission Service
Providers for VAR Support Service, so
the proposed capacity component is 0
MW at this time. WACM had previously
determined that the non-Federal
Transmission Service Providers within
the WACM Control Area have adequate
non-Federal generation resources and/or
other VAR compensating devices
connected to their transmission systems
to self-provide VAR support for the
transactions on their systems. The
potential exists, however, where
WACM, using facilities under its
control, could be providing VAR
E:\FR\FM\22AUN1.SGM
22AUN1
asabaliauskas on DSK3SPTVN1PROD with NOTICES
56642
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
support on behalf of a non-Federal
Transmission Service Provider (directly
or indirectly). As such, language in L–
AS2 has been revised to clarify how the
formula rate applies to CRCM and LAPT
as Transmission Service Providers and
to WACM as the Control Area operator.
If and when deemed necessary, WACM
will assess charges to Transmission
Service Providers using the unit rate
applicable under L–AS2 against either
the Transmission Service Provider’s
reserved capacity or the tagged
megawatt usage of the Transmission
Service Provider’s transmission
customers.
As stated above, WAPA–RMR is
removing this proposed capacity
component from the denominator and is
instead going to treat any future revenue
from these potential WACM
transactions as revenue credits within
the numerator of the VAR Support
Service rate design.
Comment 5: Customer requests
additional information regarding the
entity from which a transmission
customer will be obtaining VAR
Support Service as part of the use of
transmission located within the WACM
Control Area. It is not clear if the
WACM Control Area is the provider of
VAR Support Services and LAPT and
CRCM Transmission Service Providers
are providing VAR support on behalf of
the WACM Control Area or if individual
Transmission Service Providers within
the WACM Control Area are
independently providing VAR support.
Customer also seeks to better
understand the role and contribution of
non-Federal generation resources
located inside the WACM Control Area
and how those contributions support
VAR requirements, as these activities
are primarily performed on a local basis
and not necessarily separated by
Transmission Service Provider
ownership within the Control Area
boundaries.
Response 5: According to WAPA’s
OATT, VAR Support Service can be
provided directly by the Transmission
Service Provider if the Transmission
Service Provider is the Control Area
operator or indirectly by the
Transmission Service Provider making
arrangements with the Control Area
operator performing this service for the
Transmission Service Provider’s system.
As such, CRCM and LAPT provide VAR
Support Service directly to the LAP and
CRSP transmission systems. CRCM and
LAPT assess charges to their
transmission customers using a rate
design that includes only the portion of
the Federal generation costs applicable
to VAR support.
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
WACM, as the Control Area operator,
through coordinated efforts with the
Transmission Service Providers,
performs this service for the nonFederal Transmission Service Providers
within the Control Area. As previously
discussed, WACM had previously
determined that the non-Federal
Transmission Service Providers within
the WACM Control Area have adequate
non-Federal generation resources and/or
other VAR compensating devices
connected to their transmission systems
to self-provide VAR support for their
systems. In these cases, WACM is not
the provider of VAR support and
therefore does not charge the nonFederal Transmission Service Providers
for performing this service on their
behalf. If WACM determines a
Transmission Service Provider does not
have adequate VAR resources, WACM
may assess charges to the Transmission
Service Provider under L–AS2.
Comment 6: Customer recommends
WAPA–RMR provide a list of generators
and other transmission equipment
providing VAR support for the LAP and
CRSP transmission systems located
within the WACM Control Area.
Response 6: The generators providing
VAR support for LAP and CRSP
transmission systems and whose costs
are included in the L–AS2 rate design
are: Alcova, Big Thompson, Blue Mesa,
Boysen, Crystal, Estes, Flaming Gorge,
Flatiron, Fontenelle, Fremont Canyon,
Glen Canyon, Glendo, Green Mountain,
Guernsey, Heart Mountain, Kortes,
Morrow Point, Mary’s Lake, Molina, Mt.
Elbert, Polehill, Seminoe, Towaoc,
Willow Creek, and Yellowtail. The costs
for the transmission equipment (i.e.,
reactors and shunt capacitors) providing
VAR support for the LAP and CRSP
transmission systems are not included
in the L–AS2 rate design, but are instead
included in each Project’s respective
transmission rate.
Comment 7: Customer requests
additional information regarding the
process in which WAPA–RMR may
exclude charges for VAR Support
Service for a transmission customer.
Customer seeks to better understand the
application and the governing
agreement used to qualify a
transmission customer for exemption,
i.e., is the exclusion an all or nothing
election or is there a pro-rated off-set or
credit for eligibility exemption?
Response 7: According to WAPA’s
OATT, VAR Support Service is a service
Transmission Service Providers must
offer for each transaction on its
transmission system and the
transmission customers must purchase.
As discussed in the Customer Brochure,
LAPT and CRCM may allow a LAP or
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
CRSP transmission customer who
requests an exemption to receive an
exemption from VAR Support Service
charges related to its LAP or CRSP
transmission service if they have a
generating plant directly connected to
the LAP or CRSP transmission system.
The generator must have the capability
to provide VARs and the transmission
customer must execute a contract with
WAPA–RMR stipulating all the
provisions of their VAR support selfsupply. WAPA–RMR will work with
customers to evaluate their particular
circumstances.
Comment 8: Customer commented
they are generally supportive of the
concept to more accurately allocate
costs based on cost causation principals
by applying a cost multiplier; however,
Customer has concerns regarding how
WAPA–RMR plans to assess Regulation
Service charges under its proposal for
three example scenarios: (1) A
distribution cooperative purchases the
output of a 2 MW wind farm connected
to a 34.5–kV distribution system from a
third party. The distribution system is
connected to a 34.5/115–kV transformer
and is metered on the low side of the
transformer. The maximum output of
the wind farm is less than the local load
served through the 34.5/115–kV
transformer connected off the
transmission system; (2) A retail
customer of a distribution cooperative
with a load of 15 MW installs a 10 MW
wind farm behind its retail revenue
meter to self-supply a portion of its load
requirements; and (3) A transmission
customer purchases the output of a solar
facility located physically outside of the
WACM Control Area and the
transmission customer requests to
dynamically meter the solar facility into
the WACM Control Area and WACM
approves the request.
With respect to scenarios 1 and 2,
Customer considers them to not be
subject to Regulation Service VER
charges from WAPA–RMR for several
reasons. First, Customer does not own,
control, or lease the resources. Second,
Customer cannot designate these
resources as Network resources. Third,
the VER is located on the underlying
distribution system or behind a retail
customer’s revenue meter, and the
resources do not utilize transmission
located inside the WACM Control Area.
Fourth, local load self-supply by
Customer’s member owners allows for
member owners to serve up to five
percent of their load by non-customer
owned, controlled, or leased resources.
Customer is responsible for delivering
resources it owns, controls, or leases to
the remaining load not self-provided by
its members. Customer supports cost
E:\FR\FM\22AUN1.SGM
22AUN1
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
causation principles to allocate
regulation costs, however, Customer
does not support costs shifted to it as a
transmission customer of WAPA–RMR
for resources for which Customer has no
responsibility and over which Customer
has no control. Customer believes they
should be subject only to Regulation
Service VER charges for VER they own,
control, or lease and which is located
within the WACM Control Area.
Customer requests WAPA–RMR to
identify the entity responsible for
specific eligible charges for Regulation
Service for VER located in the WACM
Control Area. Are these resources
subject to Regulation Service charges
under WAPA’s OATT? Customer
requests WAPA–RMR provide the
supporting OATT language of WAPA–
RMR’s determination of the responsible
entity.
Response 8: The application of the
load-based assessment to the installed
nameplate of VER serving load inside
the WACM Control Area has been in
place since June 2006. WAPA–RMR did
not propose a change to the assessment.
WAPA–RMR proposed to include only
the ‘‘variable capacity multipliers’’ to
the assessment.
All loads inside the Control Area
consume regulation; therefore, WACM,
by default, provides Regulation Service
to all loads inside the Control Area. As
such, WAPA–RMR’s Regulation Service
formula rate schedule L–AS3 is a
combined rate schedule applicable to
CRCM and LAPT as Transmission
Service Providers and to WACM as the
Control Area operator.
WAPA–RMR’s OATT is applicable to
Federal transmission service, not to
services provided by the WACM Control
Area. WAPA–RMR establishes Business
Practices to document policies/practices
applicable to the Control Areas.
WAPA’s OATT does not specifically
address how Regulation Service is to be
charged under these scenarios, but
WAPA–RMR has posted a Business
Practice that specifically addresses
behind the meter generation. Based on
customer feedback, WAPA–RMR will
pursue providing more specific details
related to these types of scenarios in a
new Business Practice.
Since 2006, L–AS3 has been
applicable to all variable generators
inside the WACM Control Area. WACM
does not differentiate where the variable
resource is connected to any elements of
the transmission system, e.g., directly
connected to a transmission line, direct
interconnection to a substation, or
connected to the distribution system
behind the customer’s meter. The
Regulation Service provided by WACM
for the variable resource is to mitigate
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
the minute-to-minute variation of the
generator output. The Regulation need
is the same no matter where the variable
resource is connected. WAPA–RMR
acknowledges any resource behind the
customer’s meter reduces the customer’s
energy requirements, but the
transmission service and ancillary
services for said load is not decreased
by the variable resource behind the
customer’s meter. Variable resource, by
definition, is intermittent, nondispatchable, and has a unique energy
profile whether it is netted to load or
sent elsewhere.
When a Federal transmission
customer or a WACM customer
purchases the output of a variable
resource located outside the WACM
Control Area, and statically schedules it
into WACM, the application of the loadbased assessment on the VER nameplate
is not applicable since the regulation
service for the resource is being
provided by the host or native Balancing
Authority (where the VER resides). If a
Federal transmission customer or a
WACM customer requests to
dynamically transfer the output of a
VER that resides in another Balancing
Authority to the WACM Control Area,
WACM will work with the customer to
dynamically transfer the VER from the
native Balancing Authority to the
WACM Control Area. Under this
condition, and with installation of
proper telemetry and inclusion of the
variable resource in its AGC, WACM
will be providing the Regulation Service
for the VER generator and the
application of the load-based
assessment on the VER nameplate is
applicable.
Comment 9: Customer recommends
WAPA–RMR provide the quantity of
renewable resources comprised of solar
generation located within the WACM
Control Area that would result in
WAPA–RMR applying a capacity
multiplier other than 1.00.
Response 9: As stated in the Proposed
FRN, WACM does not have a significant
amount of solar generation impacting its
Control Area; therefore, does not have
sufficient solar generation data available
to perform a thorough analysis to
determine a more specific solar
multiplier at this time. The multipliers
are determined based on the size of the
resource, as well as the behavior and
diversity of those resources and how
they impact the Control Area, so a
specific quantity of solar generation
which would result in changing the
multiplier is unknown at this time.
Comment 10: Customer recommends
in lieu of an annual update to the
variable capacity multiplier, if the
annual update calculation results in a
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
56643
multiplier change of .25 or more (higher
or lower) from the previous multiplier,
then an update to the multiplier would
be appropriate. Customer also
recommends WAPA–RMR update the
multiplier in increments of 0.25.
Response 10: WAPA–RMR conducted
an analysis which shows allowing a
difference in the multiplier up to 0.24
would result in a cost shift in the rate
design of approximately 3–4% between
the VER and non-VER customers.
WAPA–RMR has determined that this
cost shift is not warranted because the
correct multiplier will be known at the
time the annual rate design is updated.
Comment 11: Customer asked if
WAPA–RMR anticipates the total
revenue collection for regulation will
increase due to the rate proposal.
Response 11: The only proposed
change to the Regulation Service
formula rate was to implement the
‘‘variable capacity multipliers.’’ This
change will impact the denominator of
the rate and will change how much of
the revenue requirement is collected
from customers with VER and from
customers without VER, but it has no
impact on the total revenue collected
because it has no impact on the revenue
requirement.
Comment 12: Customer commented
they do not support WAPA–RMR’s
current proposal to develop a new rate
schedule for LAP Marketing to sell
surplus products as they believe it, as
currently written, provides very little
detail and it is unclear how the proposal
will be used by WAPA–RMR in its
management of delivery of hydropower
to FES customers as well as the
marketing of excess non-firm
transmission to transmission customers
available after meeting FES delivery
obligations. The new rate schedule
appears to support the marketing of
available products and resources to
wholesale electricity market
participants at market-based rates in
lieu of offering products to FES
customers on a cost-based basis. They
recommend WAPA–RMR not pursue
development of the proposed L–M1 rate
schedule at this time, even though they
agree WAPA–RMR should have a more
formal level of documentation of new
products it may have available to offer
to its FES customers and agrees this
should be supported through the formal
public process.
If WAPA–RMR moves forward with
the proposal, Customer recommends if
excess products are available for sale
(regardless of duration) the FES
customers are provided first opportunity
to purchase excess products from
WAPA–RMR on a cost-based delivery
basis and not at prevailing market
E:\FR\FM\22AUN1.SGM
22AUN1
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
prices. Customer also recommends
WAPA–RMR provide to its FES
customers the supporting rate sheet data
for products offered to FES customers so
they can better understand the cost
drivers for a product.
Response 12: WAPA–RMR intends to
use this rate schedule to offer products
to FES and other customers. LAP cannot
always sell these surplus products at
cost to FES or other customers due to
more competitive market options;
therefore, the rates have been
discounted to make the sales possible.
As such, WAPA–RMR is not able to
provide specific rate sheet data for these
types of transactions. The revenue LAP
receives from these surplus sales offsets
expenses, which is a benefit to the LAP
power rate and all FES customers.
Availability of Information
All brochures, studies, comments,
letters, memorandums, or other
documents used by WAPA–RMR to
develop the Provisional Formula Rates
are available for inspection and copying
at the Rocky Mountain Regional Office,
5555 East Crossroads Boulevard,
Loveland, Colorado. Many of these
documents are also available on WAPA–
RMR’s Web site located at https://
www.wapa.gov/regions/RM/rates/Pages/
2017-rate-adjustment.aspx.
Ratemaking Procedure Requirements
Environmental Compliance
asabaliauskas on DSK3SPTVN1PROD with NOTICES
In compliance with the National
Environmental Policy Act (NEPA) of
1969, 42 U.S.C. 4321–4347; the Council
on Environmental Quality Regulations
for implementing NEPA (40 CFR parts
1500–1508); and DOE NEPA
Implementing Procedures and
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Guidelines (10 CFR part 1021), WAPA
has determined this action is
categorically excluded from the
preparation of an environmental
assessment or an environmental impact
statement. A copy of the categorical
exclusion determination is available on
WAPA–RMR’s Web site located at
https://www.wapa.gov/regions/RM/
environment/Pages/CX2016.aspx. Look
for file entitled, ‘‘2016–077 Prop
Formula Rate Adjust for Transmission
Ancillary Services and Sale of Surplus
Prods 031016.’’
Determination Under Executive Order
12866
WAPA has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Submission to the Federal Energy
Regulatory Commission
The formula rates herein confirmed,
approved, and placed into effect on an
interim basis, together with supporting
documents, will be submitted to FERC
for confirmation and final approval.
ORDER
In view of the foregoing, and under
the authority delegated to me, I confirm
and approve on an interim basis,
effective the first full billing period on
or after October 1, 2016, formula rates
for LAP Transmission; CRSP, LAP, and
WACM Ancillary Services; WACM
Transmission Losses, and LAP
Marketing Sales of Surplus Products
under Rate Schedules L–NT1, L–FPT1,
L–NFPT1, L–UU1, L–AS1, L–AS2,
L–AS3, L–AS4, L–AS5, L–AS6, L–AS7,
L–AS9, and L–M1. These rate schedules
PO 00000
Frm 00068
Fmt 4703
Sfmt 4725
shall remain in effect on an interim
basis, pending FERC’s confirmation and
approval of them, or substitute formula
rates, on a final basis through September
30, 2021.
Dated: August 12, 2016
Elizabeth Sherwood-Randall
Deputy Secretary of Energy
Rate Schedule L–NT1
ATTACHMENT H to OATT
(Supersedes Rate Schedule L–NT1
dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
NETWORK INTEGRATION
TRANSMISSION SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
The Transmission Customer will
compensate the Loveland Area Projects
Transmission Service Provider (LAPT)
each month for Network Integration
Transmission Service under the
applicable Network Integration
Transmission Service Agreement and
the Annual Transmission Revenue
Requirement described herein.
Formula Rate
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.024</GPH>
56644
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
A calculated Annual Transmission
Revenue Requirement will go into effect
every October 1 based on updated
financial projections and the true-up of
previous projections. The Annual
Transmission Revenue Requirement
will be posted on the LAPT Open
Access Same-Time Information System
Web site.
Rate Schedule L–FPT1
SCHEDULE 7 to OATT
(Supersedes Rate Schedule L–FPT1
dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
LONG-TERM FIRM AND SHORTTERM FIRM POINT-TO-POINT
TRANSMISSION SERVICE
56645
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
The Transmission Customer shall
compensate the Loveland Area Projects
Transmission Service Provider (LAPT)
each month for reserved capacity under
the applicable Firm Point-to-Point
Transmission Service Agreement and
the formula rate described herein.
Formula Rate
Effective
The first day of the first full billing
period beginning on or after October 1,
A calculated charge will go into effect
every October 1 based on the formula
above, updated financial and load
projections, and the true-up of previous
projections. The annual charge will be
posted on the LAPT Open Access Same-
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Rate Schedule L–NFPT1
SCHEDULE 8 to OATT
(Supersedes Rate Schedule L–NFPT1
dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN POWER AREA
ADMINISTRATION
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
The Transmission Customer will
compensate the Loveland Area Projects
Transmission Service Provider (LAPT)
for Non-Firm Point-to-Point
Transmission Service under the
applicable Non-Firm Point-to-Point
Transmission Service Agreement and
the formula rate described herein.
Formula Rate
ROCKY MOUNTAIN REGION
Loveland Area Projects
NON-FIRM POINT-TO-POINT
TRANSMISSION SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
Time Information System (OASIS) Web
site.
Discounts
Three principal requirements apply to
discounts for transmission service as
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
follows: (1) any offer of a discount made
by LAPT must be announced to all
eligible customers solely by posting on
the LAPT OASIS Web site; (2) any
customer-initiated requests for
discounts, including requests for use by
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.026</GPH>
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Discounts
Three principal requirements apply to
discounts for transmission service as
follows: (1) Any offer of a discount
made by LAPT must be announced to
all eligible customers solely by posting
on the LAPT OASIS Web site; (2) any
customer-initiated requests for
discounts, including requests for use by
LAP Marketing, must occur solely by
posting on the LAPT OASIS Web site;
and (3) once a discount is negotiated,
details must be immediately posted on
the LAPT OASIS Web site. For any
discount agreed upon for service on a
path, from Point(s) of Receipt to Point(s)
of Delivery, LAPT must offer the same
discounted transmission service rate for
the same time period to all eligible
customers on all unconstrained
transmission paths that go to the same
point(s) of delivery on the transmission
system.
EN22AU16.025</GPH>
A calculated charge will go into effect
every October 1 based on the formula
above, updated financial and load
projections, and the true-up of previous
projections. The annual charge will be
posted on the LAPT Open Access SameTime Information System (OASIS) Web
site.
56646
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
LAP Marketing, must occur solely by
posting on the LAPT OASIS; and (3)
once a discount is negotiated, details
must be immediately posted on the
LAPT OASIS. For any discount agreed
upon for service on a path, from Point(s)
of Receipt to Point(s) of Delivery, LAPT
must offer the same discounted
transmission service charge for the same
time period to all eligible customers on
all unconstrained transmission paths
that go to the same point(s) of delivery
on the transmission system.
Rate Schedule L–UU1
SCHEDULE 10 to OATT
(Supersedes Rate Schedule L–UU1
dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
UNRESERVED USE PENALTIES
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Applicable
The Transmission Customer shall
compensate the Loveland Area Projects
Transmission Service Provider (LAPT)
each month for any unreserved use of
the transmission system (Unreserved
Use) under the applicable transmission
service formula rates as described
herein. Unreserved Use occurs when an
eligible customer uses transmission
service it has not reserved or a
Transmission Customer uses
transmission service in excess of its
reserved capacity. Unreserved Use may
also include a Transmission Customer’s
failure to curtail transmission when
requested, a Network Integration
Transmission Service (Network)
Customer’s scheduled delivery of offsystem non-designated purchases using
transmission capacity reserved for
designated Network resources, and a
Network Customer’s use of Network
service or secondary service to facilitate
a wholesale sale that does not serve a
Network load.
Penalty Rate
The penalty charge for a Transmission
Customer who engages in Unreserved
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Use is 200 percent of the Loveland Area
Project’s approved formula rate for Firm
Point-to-Point Transmission Service
assessed as follows: the Unreserved Use
Penalty for a single hour of Unreserved
Use is based upon the charge for daily
Firm Point-to-Point Transmission
Service. The Unreserved Use Penalty for
more than one assessment for a given
duration (e.g., daily) increases to the
next longest duration (e.g., weekly). The
Unreserved Use Penalty for multiple
instances of Unreserved Use (e.g., more
than one hour) within a day is based on
the charge for daily Firm Point-to-Point
Transmission Service. The Unreserved
Use Penalty for multiple instances of
Unreserved Use isolated to one calendar
week is based on the charge for weekly
Firm Point-to-Point Transmission
Service. The Unreserved Use Penalty for
multiple instances of Unreserved Use
during more than one week in a
calendar month is based on the charge
for monthly Firm Point-to-Point
Transmission Service.
A Transmission Customer who
exceeds their reserved capacity at any
point of receipt or point of delivery, or
an eligible customer who uses
transmission service at a point of receipt
or point of delivery it has not reserved,
is required to pay for all ancillary
services provided by LAPT and
associated with the Unreserved Use.
The Transmission Customer will pay for
ancillary services based on the amount
of transmission service it used and did
not reserve.
Rate Schedule L–AS1
SCHEDULE 1 to OATT
(Supersedes Rate Schedule SP–SD4 and
Rate Schedule L–AS1 dated October 1,
2011, through September 30, 2016)
Applicable
This rate schedule applies to Colorado
River Storage Project Transmission
(CRCM) and Loveland Area Projects
Transmission (LAPT) as Transmission
Service Providers (TSPs) and to Western
Area Colorado Missouri Balancing
Authority (WACM) as the Control Area
operator. Scheduling, System Control,
and Dispatch Service is required to
schedule the movement of power
through, out of, within, or into WACM.
This service can be provided only by the
operator of the Control Area in which
the transmission facilities used for
transmission service are located.
The CRCM and LAPT TSPs must offer
this service and the Federal
Transmission Customers must purchase
this service from the CRCM and LAPT
TSPs. WACM provides this service on
behalf of all TSPs within WACM and
those TSPs must purchase this service
from WACM.
The charge will be applied to all
schedules, except those for the delivery
of transmission losses to WACM.
WACM will accept any number of
scheduling changes over the course of
the day without any additional charge.
Unless other arrangements are made
with WACM, the charge will be
allocated equally among all TSPs, both
Federal and non-Federal, listed on the
schedule who are inside WACM. The
Federal transmission segments of the
schedule are exempt from invoicing, as
costs for these segments are included in
the CRCM and LAPT transmission
service rates.
Formula Rate
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Colorado River Storage Project
Loveland Area Projects
Western Area Colorado Missouri
Balancing Authority
SCHEDULING, SYSTEM CONTROL,
AND DISPATCH SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
E:\FR\FM\22AUN1.SGM
22AUN1
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
The annual cost of scheduling
personnel and related costs includes
annual costs associated with
transmission scheduling (i.e., personnel,
facilities, equipment and software, as
well as credits representing fees for
agent services).
The number of schedules per year is
the yearly total of daily tags which
result in a schedule, excluding loss
schedules.
A calculated charge will go into effect
every October 1 based on the formula
above and updated financial and
schedule data. The annual charge will
be posted on the CRCM and LAPT Open
Access Same-Time Information System
Web sites.
Rate Schedule L–AS2
SCHEDULE 2 to OATT
(Supersedes Rate Schedule SP–RS4 and
Rate Schedule L–AS2 dated October 1,
2011, through September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Colorado River Storage Project
Loveland Area Projects
Western Area Colorado Missouri
Balancing Authority
REACTIVE SUPPLY AND VOLTAGE
CONTROL FROM GENERATION OR
OTHER SOURCES SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs first.
Applicable
Other Sources Services (VAR Support
Service) is required to maintain
transmission voltages on the TSPs
transmission facilities within acceptable
limits, using generation facilities and
non-generation resources capable of
providing this service to produce or
absorb reactive power. Thus, VAR
Support Service must be provided for
each transaction on the transmission
facilities within the Control Area. The
amount of VAR Support Service
supplied to the transmission
transactions will be based on the VAR
Support Service necessary to maintain
transmission voltages within limits
generally accepted in the region and
consistently adhered to by WACM.
The CRCM and LAPT TSPs must offer
this service for each transaction and the
Federal Transmission Customers must
purchase this service from the CRCM
and LAPT TSPs, unless the
Transmission Customer has generating
resources capable of providing VARs
directly connected to a Federal
transmission facility owned and
operated by CRCM and/or LAPT and
has executed a contract stipulating all
the provisions of their self-supply. If
WACM provides VAR Support Service
on behalf of any non-Federal TSP, VAR
Support Service will be assessed based
on either the TSP’s reserved capacity or
the tagged megawatt usage of the TSP’s
Transmission Customers.
EN22AU16.028</GPH>
Formula Rate
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
PO 00000
Frm 00071
Fmt 4703
Sfmt 4725
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.027</GPH>
asabaliauskas on DSK3SPTVN1PROD with NOTICES
This rate schedule applies to Colorado
River Storage Project (CRCM) and
Loveland Area Projects (LAPT) as
Transmission Service Providers (TSPs)
and to Western Area Colorado Missouri
Balancing Authority (WACM) as the
Control Area operator. Reactive Supply
and Voltage Control from Generation or
56647
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
The annual revenue requirement for
VAR Support Service equals the
revenue requirement for Federal
generation times the % of resource
capacity used for VAR Support Service
(1 minus power factor) plus other
resources, e.g., energy and transmission
costs for condensing Federal generating
units minus applicable revenue credits
related to WACM providing service.
The transmission transactions
requiring VAR Support Service equals
transmission capacity use of the Federal
transmission systems; including pointto-point and network service on LAPT
and CRCM transmission systems.
A calculated charge will go into effect
every October 1 based on the formula
above and updated financial and
capacity data. The annual charge will be
posted on the CRCM and LAPT Open
Access Same-Time Information System
Web sites.
Rate Schedule L–AS3
SCHEDULE 3 to OATT
(Supersedes Rate Schedule SP–FR4 and
Rate Schedule L–AS3 dated October 1,
2011, through September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Colorado River Storage Project
Loveland Area Projects
Western Area Colorado Missouri
Balancing Authority
REGULATION AND FREQUENCY
RESPONSE SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Applicable
This rate schedule applies to Colorado
River Storage Project (CRCM) and
Loveland Area Projects (LAPT) as
Transmission Service Providers (TSPs)
and to Western Area Colorado Missouri
Balancing Authority (WACM) as the
Control Area operator. Regulation and
Frequency Response Service (Regulation
Service) is necessary to provide for the
The total annual revenue requirement
for Regulation Service includes such
costs as LAP and CRSP plant costs,
purchases of regulation products,
purchases of power in support of the
generating units’ ability to regulate,
purchases of transmission for regulating
units trapped geographically inside
another balancing authority, purchases
of transmission required to relocate
energy due to regulation/load following
issues, and lost on-peak sales
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
opportunities resulting from the
requirement to generate at night to
permit units to have ‘‘down’’ regulating
capability.
The total load for Regulation Service
equals load inside WACM requiring
Regulation Service, plus the installed
nameplate capacity of wind generators
serving load inside WACM times the
wind capacity multiplier, plus the
installed nameplate capacity of solar
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
continuous balancing of resources,
generation, and interchange with load
and for maintaining scheduled
interconnection frequency at sixty
cycles per second (60 Hz). Regulation
Service is accomplished by committing
on-line generation whose output is
raised or lowered, predominantly
through the use of automatic generation
control (AGC) equipment as necessary,
to follow the moment-by-moment
changes in load. All loads inside the
Control Area consume regulation;
therefore, WACM, by default, provides
Regulation Service to all loads inside
the Control Area.
The CRCM and LAPT TSPs offer this
service when transmission service is
used to serve load within WACM and
the Federal Transmission Customers
must purchase this service from the
CRCM and LAPT TSPs or make
alternative comparable arrangements
with WACM to satisfy their regulation
obligations. For the Load Serving
Entities (LSEs) who are not taking
transmission service from CRCM and
LAPT, WACM will assess Regulation
Service charges for their load and for
their variable resources inside WACM.
The formula rate will be assessed to
all applicable Federal Transmission
Customers and to all applicable nonFederal LSEs serving load inside
WACM.
Formula Rate
generators serving load inside WACM
times the solar capacity multiplier.
A calculated charge will go into effect
every October 1 based on the formula
above and updated financial, load, and
capacity multiplier data. The annual
charge and multipliers will be posted on
the CRCM and LAPT Open Access
Same-Time Information System Web
sites.
E:\FR\FM\22AUN1.SGM
22AUN1
EN22AU16.029</GPH>
56648
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Types
There are two different applications of
this Formula Rate:
1. Load-based Assessment: The charge
is assessed on an entity’s auxiliary load
(total metered load less applicable
Federal entitlements) and on the
amount stated in any BA or
transmission service agreements. The
charge is also applied to the installed
nameplate capacity of all variable
energy resources, including wind and
solar generators, serving load inside
WACM multiplied by the applicable
annually calculated Capacity Multiplier.
2. Self-provision Assessment: WACM
allows entities with AGC to self-provide
for all or a portion of their loads.
Entities with AGC are known as SubBalancing Authorities (SBA) and must
meet all of the following criteria:
a. Have a well-defined boundary, with
WACM-approved revenue-quality
metering, accurate as defined by the
North American Electric Reliability
Corporation (NERC), to include
Megawatt flow data availability at 6second or smaller intervals;
b. Have AGC responsive unit(s);
c. Demonstrate Regulation Service
capability; and
d. Execute a contract with WACM in
which entities agree to:
i. Provide all requested data to
WACM.
ii. Meet SBA error criteria as
described below.
Self-provision is measured by use of
the entity’s 1-minute average Area
Control Error (ACE) to determine the
amount of self-provision. The ACE is
used to calculate the Regulation Service
charges every hour as follows:
a. If the entity’s 1-minute average ACE
for the hour is less than or equal to 0.5
percent of its hourly average load, no
Regulation Service charge is assessed for
that hour.
b. If the entity’s 1-minute average ACE
for the hour is greater than or equal to
1.5 percent of its hourly average load,
WACM assesses Regulation Service
charges to the entity’s entire auxiliary
load, using the hourly Load-based
Assessment applied to the entity’s
auxiliary 12-cp load for that month.
c. If the entity’s 1-minute average ACE
for the hour is greater than 0.5 percent
of its hourly average load, but less than
1.5 percent of its hourly average load,
WACM assesses Regulation Service
charges based on linear interpolation of
zero charge and full charge, using the
hourly Load-based Assessment applied
to the entity’s auxiliary 12-cp load for
that month.
d. WACM monitors the entity’s Selfprovision on a regular basis. If WACM
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
determines the entity has not been
attempting to self-regulate, WACM will,
upon notification, employ the Loadbased Assessment described in No. 1,
above.
Alternative Arrangements
Exporting Variable Resource
Requirement: WACM does not provide
Regulation Service to variable resources
inside the WACM Control Area which
are not used to serve load inside the
WACM Control Area. An entity that
exports the output from a variable
generator to another Control Area will
be required to dynamically meter or
dynamically schedule the resource out
of the WACM Control Area to another
Control Area unless arrangements,
satisfactory to WACM, are made for the
entity to acquire this service from a
third party or self-supply (as outlined
below). A variable generator is one
whose output is volatile and variable
due to factors beyond direct operational
control and, therefore, is not
dispatchable.
Self- or Third-party supply: WACM
may allow an entity to supply some or
all of its required regulation, or contract
with a third party to do so. This entity
must have revenue quality metering at
every load and generation point,
accurate as defined by NERC, to include
MW flow data availability at 6-second or
smaller intervals. WACM will evaluate
the entity’s metering,
telecommunications and regulating
resource, as well as the required level of
regulation, and determine whether the
entity qualifies to self-supply under this
provision. If approved, the entity is
required to enter into a separate
agreement with WACM which will
specify the terms of the self-supply
application.
Customer Accommodation
For entities unwilling to take
Regulation Service, self-provide as
described above, or acquire the service
from a third party, WACM will assist
the entity in dynamically metering its
loads/resources to another Control Area.
Until such time as meter configuration
is accomplished, the entity will be
responsible for charges assessed under
the formula rate in effect.
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
56649
Rate Schedule L–AS4
SCHEDULE 4 to OATT
(Supersedes Rate Schedule L–AS4
dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
Western Area Colorado Missouri
Balancing Authority
ENERGY IMBALANCE SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to
Loveland Area Projects (LAPT) as the
Transmission Service Provider (TSP)
and to Western Area Colorado Missouri
Balancing Authority (WACM) as the
Control Area operator. WACM provides
Energy Imbalance Service when a
difference occurs between the
scheduled and the actual delivery of
energy to a load located within the
Control Area over a single hour. Energy
Imbalance Service is calculated as
resources minus obligations (adjusted
for transmission and transformer losses)
for any combination of generation,
scheduled transfers, transactions, or
actual load integrated over each hour.
The LAPT TSP must offer this service
when the transmission service is used to
serve load within WACM and the
Federal Transmission Customers must
purchase this service from the LAPT
TSP or make alternative comparable
arrangements with WACM to satisfy
their Energy Imbalance obligations. By
default, WACM, as the Control Area
operator, provides Energy
Imbalance Service to all entities
within its Control Area footprint. All
entities who serve load inside WACM
must enter into separate agreements
with WACM which will specify the
terms of the Energy Imbalance Service.
Formula Rate
Imbalances are calculated in three
deviation bands as follows. The term
‘‘metered load’’ is defined to be
‘‘metered load adjusted for losses.’’
1. An imbalance of less than or equal
to 1.5 percent of metered load (or 4 MW,
whichever is greater) for any hour is
settled financially at 100 percent of the
E:\FR\FM\22AUN1.SGM
22AUN1
56650
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
WACM weighted average hourly energy
price.
2. An imbalance between 1.5 percent
and 7.5 percent of metered load (or 4 to
10 MW, whichever is greater) for any
hour is settled financially at 90 percent
of the WACM weighted average hourly
energy price when net energy scheduled
exceeds metered load or 110 percent of
the WACM weighted average hourly
energy price when net energy scheduled
is less than metered load.
3. An imbalance greater than 7.5
percent of metered load (or 10 MW,
whichever is greater) for any hour is
settled financially at 75 percent of the
WACM weighted average hourly energy
price when net energy scheduled
exceeds metered load or 125 percent of
the WACM weighted average hourly
energy price when net energy scheduled
is less than metered load.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Pricing:
All Energy Imbalance Service
provided by WACM is accounted for
hourly and settled financially. The
WACM aggregate imbalance determines
the energy pricing used in all deviation
bands. A surplus dictates the use of sale
pricing; a deficit dictates the use of
purchase pricing. When no hourly data
is available, the pricing defaults for
sales and purchase pricing are applied
in the following order:
1. Weighted average sale or purchase
pricing for the day (on- and off-peak).
2. Weighted average sale or purchase
pricing for the month (on- and off-peak).
3. Weighted average sale or purchase
pricing for the prior month (on- and offpeak).
4. Weighted average sale or purchase
pricing for the month prior to the prior
month (and continuing until sale or
purchase pricing is located) (on- and offpeak).
Expansion of the bandwidth may be
allowed during the following instances:
1. Response to the loss of a physical
resource.
2. During transition of large base-load
thermal resources (capacity greater than
200 MW) between off-line and on-line
following a reserve sharing group
response, when the unit generates less
than the predetermined minimum
scheduling level.
During periods of Balancing Authority
operating constraints, WACM reserves
the right to eliminate credits for overdeliveries. The cost to WACM of any
charge assessed by a reliability oversight
agency due to a violation of operating
standards resulting from under-delivery
or over-delivery of energy may be
passed through to Energy Imbalance
Service Customers.
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
Rate Schedule L–AS9
SCHEDULE 9 to OATT
(Supersedes Rate Schedule L–AS9
dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects and
Western Area Colorado Missouri
Balancing Authority
GENERATOR IMBALANCE SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to
Loveland Area Projects (LAPT) as the
Transmission Service Provider (TSP)
and to Western Area Colorado Missouri
Balancing Authority (WACM) as the
Control Area operator. WACM provides
Generator Imbalance Service when there
is a difference between actual
generation and scheduled generation for
each hour.
The LAPT TSP must offer this service
when transmission service is used to
deliver energy to serve load within
WACM and the Federal Transmission
Customers must purchase this service
from the LAPT TSP or make alternative
comparable arrangements with WACM
to satisfy their Generator Imbalance
obligations. By default, WACM, as the
Control Area operator, provides
Generator Imbalance Service to all
entities within its Control Area
footprint. All entities who have
generation inside WACM must enter
into separate agreements with WACM
which will specify the terms of the
Generator Imbalance Service.
This formula rate applies to all
jointly-owned generators (unless
arrangements are made to allocate actual
generation to each individual owner),
variable generators (unless arrangements
are made to assess the variable generator
under Rate Schedule L–AS4), and any
non-variable generators without
associated load inside the WACM
Control Area.
Formula Rate
Imbalances are calculated in three
deviation bands as follows:
1. An imbalance of less than or equal
to 1.5 percent of metered generation (or
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
4 MW, whichever is greater) for any
hour is settled financially at 100 percent
of the WACM weighted average hourly
energy price.
2. An imbalance between 1.5 percent
and 7.5 percent of metered generation
(or 4 to 10 MW, whichever is greater) for
any hour is settled financially at 90
percent of the WACM weighted average
hourly energy price when actual
generation exceeds scheduled
generation or 110 percent of the WACM
weighted average hourly energy price
when actual generation is less than
scheduled generation.
3. An imbalance greater than 7.5
percent of metered generation (or 10
MW, whichever is greater) for any hour
is settled financially at 75 percent of the
WACM weighted average hourly energy
price when actual generation exceeds
scheduled generation or 125 percent of
the WACM weighted average hourly
energy price when actual generation is
less than scheduled generation.
Variable generators are exempt from
25 percent penalties. All imbalances
greater than 1.5 percent of metered
generation are subject only to a 10
percent penalty.
Pricing:
All Generator Imbalance Service
provided by WACM is accounted for
hourly and settled financially. The
WACM aggregate imbalance determines
the energy pricing used in all deviation
bands. A surplus dictates the use of sale
pricing; a deficit dictates the use of
purchase pricing. When no hourly data
is available, the pricing defaults for
sales and purchase pricing are applied
in the following order:
1. Weighted average sale or purchase
pricing for the day (on- and off-peak).
2. Weighted average sale or purchase
pricing for the current month (on- and
off-peak).
3. Weighted average sale or purchase
pricing for the prior month (on- and offpeak).
4. Weighted average sale or purchase
pricing for the month prior to the prior
month (and continuing until sale or
purchase pricing is located) (on- and offpeak).
Expansion of the bandwidth may be
allowed during the following instances:
1. Response to the loss of a physical
resource.
2. During transition of large base-load
thermal resources (capacity greater than
200 MW) between off-line and on-line
following a reserve sharing group
response, when the unit generates less
than the predetermined minimum
scheduling level.
During periods of Balancing Authority
operating constraints, WACM reserves
E:\FR\FM\22AUN1.SGM
22AUN1
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
56651
the right to eliminate credits for overdeliveries. The cost to WACM of any
charge assessed by a reliability oversight
agency due to a violation of operating
standards resulting from under-delivery
or over-delivery of energy may be
passed through to Generator Imbalance
Service Customers.
cost and any activation energy, plus a
fee for administration. The customer
will be responsible for providing the
transmission to deliver the Spinning
Reserves purchased.
through the cost and any activation
energy, plus a fee for administration.
The customer will be responsible for
providing the transmission to deliver
the Supplemental Reserves purchased.
Rate Schedule L–AS6
Rate Schedule L–AS7
SCHEDULE 6 to OATT
Rate Schedule L–AS5
(Supersedes Rate Schedule L–AS6
dated October 1, 2011, through
September 30, 2016)
(Supersedes Rate Schedule L–AS7
dated October 1, 2011, through
September 30, 2016)
SCHEDULE 5 to OATT
(Supersedes Rate Schedule L–AS5
dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
UNITED STATES DEPARTMENT OF
ENERGY
Loveland Area Projects and
Western Area Colorado Missouri
Balancing Authority
ROCKY MOUNTAIN REGION
Loveland Area Projects and
OPERATING RESERVE—
SUPPLEMENTAL RESERVE SERVICE
Western Area Colorado Missouri
Balancing Authority
OPERATING RESERVE—SPINNING
RESERVE SERVICE
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to
Loveland Area Projects (LAPT) as the
Transmission Service Provider (TSP)
and to Western Area Colorado Missouri
Balancing Authority (WACM) as the
Control Area operator. Spinning Reserve
Service is needed to serve load
immediately in the event of a system
contingency. Spinning Reserve Service
may be provided by generating units
that are on-line and loaded at less than
maximum output.
The LAPT TSP must offer this service
when transmission service is used to
serve load within WACM and the
Federal Transmission Customers must
purchase this service from the LAPT
TSP or make alternative comparable
arrangements with WACM to satisfy
their Spinning Reserve obligations.
WACM may be willing to provide
Spinning Reserves to other entities,
providing the entities enter into separate
agreements with WACM which will
specify the terms of the Spinning
Reserve Service.
Applicable
This rate schedule applies to the
Loveland Area Projects (LAPT) as the
Transmission Service Provider (TSP)
and the Western Area Colorado
Missouri Balancing Authority (WACM)
as the Control Area operator.
Supplemental Reserve Service is needed
to serve load in the event of a system
contingency; however, it is not available
immediately to serve load but rather
within a short period of time.
Supplemental Reserve Service may be
provided by generating units that are
on-line but unloaded, by quick-start
generation, or by interruptible load.
The LAPT TSP must offer this service
when the transmission service is used to
serve load within WACM and the
Federal Transmission Customers must
purchase this service from the LAPT
TSP or make alternative comparable
arrangements with WACM to satisfy
their Supplemental Reserve obligations.
WACM may be willing to provide
Supplemental Reserves to other entities,
providing the entities enter into separate
agreements with WACM which will
specify the terms of the Supplemental
Reserve Service.
Formula Rate
The LAPT TSP and WACM have no
Spinning Reserves available for sale. At
a customer’s request, the Rocky
Mountain Region will purchase
Spinning Reserves and pass through the
Formula Rate
The LAPT TSP and WACM have no
Supplemental Reserves available for
sale. At a customer’s request, the Rocky
Mountain Region will purchase
Supplemental Reserves and pass
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
ROCKY MOUNTAIN REGION
WESTERN AREA POWER
ADMINISTRATION
UNITED STATES DEPARTMENT OF
ENERGY
Western Area Colorado Missouri
Balancing Authority
TRANSMISSION LOSSES SERVICE
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
The Western Area Colorado Missouri
Balancing Authority (WACM) provides
Transmission Losses Service (Losses) to
all Transmission Service Providers
(TSPs) who market transmission inside
the WACM Control Area (Customers).
Transmission Losses are assessed for all
real-time and prescheduled transactions
on transmission facilities inside the
WACM Control Area. For transactions
(schedules) which involve more than
one TSP inside the WACM Control
Area, the loss obligation falls on the last
TSP listed on the schedule. This
prevents double and triple assessment
of the losses for schedules which
involve more than one TSP. The
Customer is allowed the option of
energy repayment or financial
repayment. Customers must declare
annually their preferred methodology of
energy payback. Energy repayment may
be either concurrently or seven days
later, to be delivered using the same
profile as the related transmission
transaction. The Losses applicable to the
Colorado River Storage Project (CRCM)
and Loveland Area Projects (LAPT)
TSPs will be passed directly to the
CRCM and LAPT Transmission
Customers.
Formula Rate
The loss factor currently in effect is
posted on WACM’s Business Practices
which is posted on the CRCM and LAPT
Open Access Same-Time Information
System Web sites.
When a transmission loss energy
obligation is not provided (or is under-
E:\FR\FM\22AUN1.SGM
22AUN1
56652
Federal Register / Vol. 81, No. 162 / Monday, August 22, 2016 / Notices
provided) by a Customer for a
transmission transaction, the energy
owed for Transmission Losses Service is
calculated and a charge is assessed to
the Customer based on the WACM
weighted average hourly purchase price.
Pricing for loss energy due 7 days
later, and not received by WACM, will
be priced at the 7-day-later-price based
on the WACM weighted average hourly
purchase price.
There will be no financial
compensation or energy return to
Customers for over-delivery of
Transmission Losses Service, as there
should be no condition beyond the
control of the Customer that results in
overpayment.
Customers may settle financially or
with energy. The pricing for this service
will be the WACM weighted average
hourly purchase price. When no hourly
data is available, pricing defaults will be
applied in the following order:
1. Weighted average purchase pricing
for the day (on- and off-peak).
2. Weighted average purchase pricing
for the current month (on- and off-peak).
3. Weighted average purchase pricing
for the prior month (on- and off-peak).
4. Weighted average purchase pricing
for the month prior to the prior month
(and continuing until purchase pricing
is located (on- and off-peak).
Rate Schedule L–M1
UNITED STATES DEPARTMENT OF
ENERGY
WESTERN AREA POWER
ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
SALES OF SURPLUS PRODUCTS
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Effective
The first day of the first full billing
period beginning on or after October 1,
2016, and extending through September
30, 2021, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to
Loveland Area Projects (LAP) Marketing
and is applicable to the sale of the
following LAP surplus energy and
capacity products: reserves, regulation,
and frequency response. If any of the
above LAP surplus products are
available, LAP can make the product(s)
available for sale, providing entities
enter into separate agreement(s) with
LAP Marketing which will specify the
terms of sale(s).
Formula Rate
The charge for each product will be
determined at the time of the sale based
VerDate Sep<11>2014
17:13 Aug 19, 2016
Jkt 238001
on market rates, plus administrative
costs. The customer will be responsible
for acquiring transmission service
necessary to deliver the product(s).
Dated: July 28, 2016.
Greg Armstrong,
Acting Chief, Enforcement and Community
Engagement Branch, Superfund Division.
[FR Doc. 2016–19973 Filed 8–19–16; 8:45 am]
[FR Doc. 2016–20027 Filed 8–19–16; 8:45 am]
BILLING CODE 6450–01–P
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–9951–03–Region 4; CERCLA–04–
2016–3754]
Forshaw Chemicals Superfund Site
Charlotte, Mecklenburg County, North
Carolina; Notice of Settlement
Environmental Protection
Agency (EPA).
ACTION: Notice of Settlement.
AGENCY:
Under 122(h) of the
Comprehensive Environmental
Response, Compensation and Liability
Act (CERCLA), the United States
Environmental Protection Agency (EPA)
has entered into a settlement with
Thomas Forshaw III, Forshaw
Industries, Inc., Forshaw Chemicals
Incorporated, Forshaw Distribution,
Inc., and Bess C. Forshaw, concerning
the Forshaw Chemicals Superfund Site
located in Charlotte, Mecklenburg
County, North Carolina. The settlement
addresses recovery of CERCLA costs for
a cleanup action performed by the EPA
at the Site.
DATES: The Agency will consider public
comments on the settlement until
September 21, 2016. The Agency will
consider all comments received and
may modify or withdraw its consent to
the proposed settlement if comments
received disclose facts or considerations
which indicate that the proposed
settlement is inappropriate, improper,
or inadequate.
ADDRESSES: Copies of the settlement are
available from the Agency by contacting
Ms. Paula V. Painter, Program Analyst,
using the contact information provided
in this notice. Comments may also be
submitted by referencing the Site’s
name through one of the following
methods:
Internet: https://www.epa.gov/
aboutepa/about-epa-region-4southeast#r4-public-notices.
• U.S. Mail: U.S. Environmental
Protection Agency, Superfund Division,
Attn: Paula V. Painter, 61 Forsyth Street,
SW., Atlanta, Georgia 30303.
• Email: Painter.Paula@epa.gov.
FOR FURTHER INFORMATION CONTACT:
Paula V. Painter at 404/562–8887.
SUMMARY:
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
Agency Information Collection
Activities; Comment Request
Equal Employment
Opportunity Commission.
ACTION: Final notice of information
collection under review; ADEA waivers.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995, the
Commission gives notice that it has
submitted to the Office of Management
and Budget (OMB) a request for an
extension without change of the existing
collection requirements under 29 CFR
1625.22, Waivers of rights and claims
under the Age Discrimination in
Employment Act (ADEA). No public
comments were received in response to
the EEOC’s May 27, 2016 60-Day notice
soliciting comments on the proposed
extension of this collection.
DATES: Written comments on this notice
must be submitted on or before
September 21, 2016.
ADDRESSES: Comments on this final
notice must be submitted to Joseph B.
Nye, Policy Analyst, Office of
Information and Regulatory Affairs,
Office of Management and Budget, 725
17th Street NW., Washington, DC 20503,
email oira_submission@omb.eop.gov.
Commenters are also encouraged to
send comments to the EEOC online at
https://www.regulations.gov, which is
the Federal eRulemaking Portal. Follow
the instructions on the Web site for
submitting comments. In addition, the
EEOC’s Executive Secretariat will accept
comments in hard copy by delivery by
COB on September 21, 2016. Hard copy
comments should be sent to Bernadette
Wilson, Acting Executive Officer, EEOC,
131 M Street NE., Washington, DC
20507. Finally, the Executive Secretariat
will accept comments totaling six or
fewer pages by facsimile (‘‘fax’’)
machine before the same deadline at
(202) 663–4114. (This is not a toll-free
number.) Receipt of fax transmittals will
not be acknowledged, except that the
sender may request confirmation of
receipt by calling the Executive
Secretariat staff at (202) 663–4070
(voice) or (202) 663–4074 (TTY). (These
are not toll-free telephone numbers.)
The EEOC will post online at https://
www.regulations.gov all comments
SUMMARY:
E:\FR\FM\22AUN1.SGM
22AUN1
]]>Agencies
[Federal Register Volume 81, Number 162 (Monday, August 22, 2016)]
[Notices]
[Pages 56632-56652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19973]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Rocky Mountain Region Transmission, Ancillary Services,
Transmission Losses, and Sales of Surplus Products--Rate Order No.
WAPA-174
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of order concerning transmission, ancillary services,
transmission losses, and sales of surplus products formula rates.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy has confirmed and approved Rate
Order No. WAPA-174 and Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-UU1, L-
AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-M1 placing
Loveland Area Projects (LAP) transmission; Colorado River Storage
Project (CRSP), LAP, and Western Area Colorado Missouri Balancing
Authority (WACM) ancillary services; WACM transmission losses, and LAP
sales of surplus products formula rates of the Western Area Power
Administration (WAPA), Rocky Mountain Region (WAPA-RMR) into effect on
an interim basis (Provisional Formula Rates). The Provisional Formula
Rates will provide sufficient revenue to pay all annual costs,
including interest expense, and to repay applicable investments within
the allowable periods.
DATES: The Provisional Formula Rate Schedules L-NT1, L-FPT1, L-NFPT1,
L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-M1
are effective on the first day of the first full billing period
beginning on or after October 1, 2016, and will remain in effect
through September 30, 2021, pending approval by the Federal Energy
Regulatory Commission (FERC) on a final basis or until superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Bradley S. Warren, Regional
Manager, Rocky Mountain Region, Western Area Power Administration, 5555
East Crossroads Boulevard, Loveland, CO 80538-8986, telephone (970)
461-7201, or Mrs. Sheila D. Cook, Rates Manager, Rocky Mountain Region,
Western Area Power Administration, 5555 East Crossroads Boulevard,
Loveland, CO 80538-8986, telephone (970) 461-7211, email
scook@wapa.gov.
SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved
WAPA-155, which provides the existing formula Rate Schedules L-NT1, L-
FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7,
L-AS9, on September 2, 2011 (76 FR 61184).\1\ Those formula rate
schedules expire on September 30, 2016. WAPA-RMR published a Federal
Register notice (Proposed FRN) on February 3, 2016 (81 FR 5744),
proposing a change to the forward-looking transmission rate
methodology; modifications to rate designs under Rate Schedules L-FPT1,
L-AS2, and L-AS3; clarification of the language in all the existing
rate schedules; and implementation of a new rate schedule for sales of
surplus products, L-M1. The Proposed FRN also initiated a public
consultation and comment period and set forth the date and location of
the public information and public comment forums. WAPA-RMR held both
forums in Loveland, Colorado, on March 28, 2016, where staff explained
the proposed formula rates, answered questions, and provided the public
with an opportunity to comment for the record.
---------------------------------------------------------------------------
\1\ FERC confirmed and approved WAPA-155 on a final basis on
December 2, 2011, in Docket No. EF11-10-000. See United States
Department of Energy, Western Area Power Administration, 137 FERC ]
62,200.
---------------------------------------------------------------------------
WAPA-RMR modified the forward-looking transmission rate
methodology; rate designs in Rate Schedules L-FPT1, L-AS2, and L-AS3;
clarified language in all the existing rate schedules; and implemented
a new formula rate schedule for sales of surplus products, Rate
Schedule L-M1. The rate schedules contain formula-based charges which
will be calculated annually to incorporate the most recent financial,
load, and schedule information, as applicable.
By Delegation Order No. 00-037.00A, effective October 25, 2013, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to the Administrator of WAPA; (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to FERC. Federal rules (10 CFR part 903) govern
Department of Energy procedures for public participation in power and
transmission rate adjustments.
Under Delegation Order Nos. 00-037.00A and 00-001.00F and in
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm,
approve, and place Rate Order No. WAPA-174, which provides the formula
rates for LAP transmission; LAP, CRSP, and WACM ancillary services;
WACM transmission losses; and LAP sales of surplus products, into
effect on an interim basis. The new Rate Schedules L-NT1, L-FPT1, L-
NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9,
and L-M1 will be submitted promptly to FERC for confirmation and
approval on a final basis.
Dated: August 12, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.
Department of Energy
Deputy Secretary
In the Matter of:
Western Area Power Administration, Rocky Mountain Region, Rate
Adjustment for Transmission, Ancillary Services, Transmission,
Losses, and Sales of Surplus Products,
Rate Order No. WAPA-174
Order Confirming, Approving, and Placing Transmission Service,
Ancillary Services, Transmission Losses, and Sales of Surplus Products
Formula Rates Into Effect on An Interim Basis
The transmission, ancillary services, transmission losses, and
sales of surplus products formula rates set forth in this order are
established pursuant to section 302 of the Department of Energy
(DOE) Organization Act (42 U.S.C. 7152). This act transferred to and
vested in the Secretary of Energy 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 laws, particularly
section 9(c) of the Reclamation Act of 1939 (43 U.S.C. 485h(c)) and
section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), and
other acts that specifically apply to the projects involved.
By Delegation Order No. 00-037.00A, effective October 25, 2013,
the Secretary of Energy delegated: (1) The authority to develop
power and transmission rates to the Administrator of Western Area
Power Administration; (2) the authority to confirm, approve, and
place such rates into effect on an interim basis to the Deputy
Secretary of Energy; 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. Federal rules (10
CFR part 903) govern DOE procedures for public participation in
power rate adjustments.
[[Page 56633]]
Acronyms/Terms and Definitions
As used in this Rate Order, the following acronyms/terms and
definitions apply:
------------------------------------------------------------------------
Acronym/term Definition
------------------------------------------------------------------------
$/kW-month........................ Dollars per kilowatt per month.
12-cp............................. Rolling 12-month average of
customers' loads in excess of
applicable Federal Entitlement,
coincident with the Loveland Area
Projects transmission system peak.
AGC............................... Automatic Generation Control.
Balancing Authority............... The responsible entity that
integrates resource plans ahead of
time, maintains load-interchange-
generation balance within a
Balancing Authority area, and
supports interconnection frequency
in real time.
Business Practices................ Document that provides requirements
for services and clarifies various
aspects of the services offered.
Control Area...................... The term used for a Balancing
Authority area in WAPA's Open
Access Transmission Tariff.
Customer Brochure................. Document that further explains the
rate methodologies under Rate Order
No. WAPA-174.
CRSP.............................. Colorado River Storage Project.
CRCM.............................. The CRSP Transmission Service
Provider.
DOE............................... United States Department of Energy.
Federal Customers................. LAP or CRSP customers taking
delivery of long-term firm service
under firm electric service
contracts, project use, and special
use contracts.
Firm Electric Service Contracts... Contracts for the sale of long-term
firm LAP and CRSP Federal energy
and capacity, pursuant to each
Project's General Power Marketing
and Allocation Criteria (Marketing
Plan).
FERC.............................. Federal Energy Regulatory
Commission.
Federal Entitlements.............. The energy and capacity delivered to
Federal Customers under Firm
Electric Service Contracts.
Fry-Ark........................... Fryingpan-Arkansas Project.
FY................................ Fiscal Year, October 1 through
September 30.
LAP............................... Loveland Area Projects.
LAPT.............................. The LAP Transmission Service
Provider.
M&I............................... Municipal and Industrial.
Monthly Entitlements.............. Maximum capacity to be delivered
each month under Firm Electric
Service Contracts. Each monthly
entitlement is a percentage of the
seasonal contract-rate-of-delivery.
MW................................ Megawatt. The unit of electrical
capacity equal to 1,000 kW or
1,000,000 watts.
Open Access Same Time Information An electronic posting system a
System (OASIS). Transmission Service Provider
maintains for transmission access
data that allows all transmission
customers to view the data
simultaneously.
OATT.............................. WAPA's revised Open Access
Transmission Service Tariff,
effective April 12, 2013.
Provisional Formula Rate.......... A formula rate confirmed, approved,
and placed into effect on an
interim basis by the Deputy
Secretary.
P-SMBP............................ Pick-Sloan Missouri Basin Program.
P-SMBP--WD........................ Pick-Sloan Missouri Basin Program--
Western Division.
RMR............................... Rocky Mountain Region.
Transmission Service Provider..... An entity who administers a
transmission tariff and provides
transmission service to
transmission customers under
applicable transmission service
agreements.
VAR............................... Volt-Ampere Reactive related to
Reactive Supply and Voltage
Control.
VER............................... Variable Energy Resource is one
whose output is volatile and
variable due to factors beyond
direct operations control and,
therefore, is not dispatchable.
WACM.............................. Western Area Colorado Missouri
Balancing Authority.
WAPA.............................. Western Area Power Administration.
------------------------------------------------------------------------
Effective Date
The Provisional Formula Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-
UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-M1
are effective on the first day of the first full billing period
beginning on or after October 1, 2016, and will remain in effect
through September 30, 2021, pending approval by FERC on a final basis
or until superseded.
Public Notice and Comment
WAPA-RMR has followed the Procedures for Public Participation in
Power and Transmission Rate Adjustments and Extensions, 10 CFR part
903, in the development of these formula rates and schedules. The steps
WAPA-RMR took to involve interested parties in the rate process were:
1. On August 10, 2015, WAPA-RMR held an informal customer meeting
to discuss changes, updates, and additions WAPA-RMR was considering
recommending for LAP transmission; CRSP, LAP, and WACM ancillary
services; WACM transmission losses; and LAP sales of surplus products.
The meeting was announced through email notification to all customers,
as well as posting on WAPA-RMR's Web site for all interested parties.
WAPA-RMR posted all information presented at the informal customer
meeting, as well as responses to questions asked at the meeting, on its
Web site at https://www.wapa.gov/regions/RM/rates/Pages/2017-rate-adjustment.aspx.
2. WAPA-RMR published a Federal Register notice on February 3, 2016
(81 FR 5744) (Proposed FRN), announcing the proposed transmission,
ancillary services, transmission losses, and sales of surplus products
formula rates adjustment, initiating the public consultation and
comment period, announcing the date and location of the public
information and public comment forums, and outlining procedures for
public participation.
3. On February 3, 2016, WAPA-RMR sent a letter to customers and
interested parties providing them with a copy of the Proposed FRN.
4. On March 28, 2016, WAPA-RMR held a public information forum in
Loveland, Colorado, where WAPA-RMR representatives explained the need
for the formula rates adjustment in detail and answered questions.
5. On March 28, 2016, following the public information forum, WAPA-
RMR held a public comment forum in Loveland, Colorado, to provide an
opportunity for customers and other interested parties to comment for
the
[[Page 56634]]
record. At this forum, one individual presented nine comments. Those
comments and WAPA-RMR's responses are addressed below.
6. WAPA-RMR received one written comment letter during the 90-day
consultation and comment period, which ended on May 3, 2016. The letter
contained several comments, many of which were also presented during
the comment forum. The comments and WAPA-RMR's responses are addressed
below.
All comments received have been considered in the preparation of
this Rate Order.
Project Descriptions
The Post-1989 General Power Marketing and Allocation Criteria,
published in the Federal Register on January 31, 1986 (51 FR 4012),
integrated the resources of the P-SMBP--WD and Fry-Ark. This
operational and contractual integration, known as LAP, allowed an
increase in marketable resources, simplified contract administration,
and established a blended rate for LAP power sales. WAPA-RMR offers
ancillary services from a combination of LAP generation resources and
CRSP generation resources.
P-SMBP--WD
The P-SMBP was authorized by Congress in section 9 of the Flood
Control Act of December 22, 1944 (Pub. L. 534, 58 Stat. 877, 891). This
multipurpose program provides flood control, M&I water supply,
irrigation, navigation, recreation, preservation and enhancement of
fish and wildlife, and hydroelectric power. Multipurpose projects have
been developed on the Missouri River and its tributaries in Colorado,
Montana, Nebraska, North Dakota, South Dakota, and Wyoming.
In addition to the multipurpose water projects authorized by
section 9 of the Flood Control Act of 1944, certain other existing
projects have been integrated with the P-SMBP for power marketing,
operation, and repayment purposes. The Colorado-Big Thompson, Kendrick,
Riverton, and Shoshone Projects were combined with P-SMBP in 1954,
followed by the North Platte Project in 1959. These projects are known
as the ``Integrated Projects'' of the P-SMBP. The Riverton Project was
reauthorized as a unit of the P-SMBP in 1970. Together, the P-SMBP--WD
and the Integrated Projects have 19 power plants.
There are six power plants in P-SMBP--WD: Glendo, Kortes, and
Fremont Canyon power plants on the North Platte River; Boysen and Pilot
Butte power plants on the Wind River; and Yellowtail power plant on the
Big Horn River. The Colorado-Big Thompson Project has six power plants:
Green Mountain power plant on the Blue River is on the Western Slope of
the Continental Divide; and Mary's Lake, Estes, Pole Hill, Flatiron,
and Big Thompson power plants along the Big Thompson River are on the
Eastern Slope of the Continental Divide. The Kendrick Project has two
power plants: Alcova and Seminoe power plants on the North Platte
River. Power plants in the Shoshone Project are the Shoshone, Buffalo
Bill, Heart Mountain, and Spirit Mountain plants on the Shoshone River.
The only power plant in the North Platte Project is the Guernsey power
plant, also on the North Platte River.
Fry-Ark
Fry-Ark is a trans-mountain diversion development in southeastern
Colorado authorized by the Act of Congress on August 16, 1962 (Pub. L.
87-590, 76 Stat. 389, as amended by Title XI of the Act of Congress on
October 27, 1974 (Pub. L. 93-493, 88 Stat. 1486, 1497)). The Fry-Ark
diverts water from the Fryingpan River and other tributaries of the
Roaring Fork River in the Colorado River Basin on the Western Slope of
the Rocky Mountains to the Arkansas River on the Eastern Slope of the
Rocky Mountains. The water diverted from the Western Slope, together
with regulated Arkansas River water, provides supplemental irrigation
and M&I water supplies and produces hydroelectric power. Flood control,
fish and wildlife enhancement, and recreation are other important
purposes of Fry-Ark. The only generating facility in Fry-Ark is the Mt.
Elbert Pumped-Storage power plant on the Eastern Slope.
CRSP
CRSP was authorized by the Colorado River Storage Project Act, ch.
203, 70 Stat. 105, (43 U.S.C. 620) on April 11, 1956. The project
provides water-use developments for states in the Upper Basin
(Colorado, New Mexico, Utah, and Wyoming) while still maintaining water
deliveries to the states of the Lower Basin (Arizona, California, and
Nevada) as required by the Colorado River Compact of 1922. Generation
from CRSP and its participating projects, Dolores and Seedskadee, and
from the Collbran and Rio Grande Projects have been marketed as the
Salt Lake City Area/Integrated projects (SLCA/IP) since October 1,
1987. The CRSP Project has five plants: Blue Mesa, Crystal, and Morrow
Point on the Gunnison River, Flaming Gorge located on the Green River,
and Glen Canyon located on the Colorado River; Dolores Project has two
plants: Towaoc located on the Towaoc Canal and McPhee located on the
Dolores River; Seedskadee Project has one plant: Fontenelle located on
the Green River; Collbran Project has two plants: Upper and Lower
Molina located on the Cottonwood and Plateau Creeks respectively; and
the Rio Grande Project has one plant: Elephant Butte located on the Rio
Grande River.
Transmission, Ancillary Services, Transmission Losses, and Sales of
Surplus Products
WAPA-RMR is implementing revised formula rates for transmission,
ancillary services, and transmission losses under Rate Schedules L-NT1,
L-FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-
AS7, and L-AS9 and a new formula rate for sales of surplus products
under Rate Schedule L-M1. The formula rates are each designed to
recover the annual costs of providing the services, as applicable.
Existing and Provisional Formula Rates
The existing formula rates contained in Rate Schedules L-NT1, L-
FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7,
and L-AS9 expire on September 30, 2016. Several of these rate schedules
contain formula rates that were calculated each year to include the
most recent financial, load, and schedule information, as applicable.
The new rate schedules continue with this approach. The charges under
the applicable formula rates are calculated annually in early summer;
therefore, WAPA-RMR was unable to provide the specific charges for FY
2017 during the rate process and in this Rate Order. Once calculated,
the FY 2017 charges will be posted to WAPA's Web sites at https://www.wapa.gov/regions/RM/rates/Pages/Transmission-ancillary.aspx and
https://www.wapa.gov/regions/CRSP/rates/Pages/Tariffs.aspx.
Certification of Rates
WAPA's Administrator certified the Provisional Formula Rates for
LAP Transmission; CRSP, LAP and WACM Ancillary Services; WACM
Transmission Losses; and LAP Sales of Surplus Products under Rate
Schedules L-NT1, L-FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-
AS5, L-AS6, L-AS7, L-AS9, and L-M1 are the lowest possible rates
consistent with sound business principles. The Provisional Formula
Rates were developed following administrative policies and applicable
laws.
[[Page 56635]]
LAP Transmission Service Discussion
In accordance with WAPA's OATT, LAPT offers Network Integration
Transmission Service (Network Service) and Firm and Non-Firm Point-to-
Point Transmission Services. These services include the transmission of
energy to points of delivery on the LAP interconnected high-voltage
system, which is comprised of transmission lines, substations, and
related facilities. Transmission service for the LAP Federal Customers
is bundled in the LAP Firm Electric Service (FES) rate.
The methodology used for formula rate development and the
implementation process are described below.
Annual Transmission Revenue Requirement
WAPA-RMR is not changing the calculation of the annual transmission
revenue requirement (ATRR), which is applicable to both Network and
Point-to-Point transmission services. The calculation for the ATRR is:
[GRAPHIC] [TIFF OMITTED] TN22AU16.016
The annual transmission cost is the ratio of gross investment cost
for transmission facilities to gross investment cost for all facilities
multiplied by the applicable total annual costs, which include
operations and maintenance, interest, and depreciation expenses. The
calculation is:
[GRAPHIC] [TIFF OMITTED] TN22AU16.017
The gross investment cost for transmission facilities will be
determined by an analysis of the LAP Transmission System. Each LAP
facility is classified by function: Transmission, sub-transmission, or
generation-related. The facilities identified as performing the
function of transmission include transmission lines normally operated
in a continuously-looped manner and the associated substations and
switchyard facilities. In the LAP Transmission System, these are
primarily the 115-kV and above facilities. In addition, a portion of
the communication and maintenance facilities is included in the
investment cost for transmission. Only the investment costs of the
facilities identified as ``transmission,'' including allocated costs
for communication and maintenance facilities, are used in developing
the annual transmission cost. The investment costs of facilities
identified as ``sub-transmission'' are excluded from the ATRR, as the
LAP sub-transmission system is used primarily for delivery of Federal
Entitlements to Federal Customers. If a transmission customer, who does
not have an FES agreement with LAP, requires the use of the sub-
transmission system, an additional facility-use charge will be
assessed. Fry-Ark facilities are considered generation-related and,
therefore, are excluded from the ATRR.
The transmission expenses for increasing transmission system
capacity will continue to include payments made to others for their
systems' augmentation of the LAP Transmission System. Miscellaneous
charges and credits will include, but not be limited to, Unreserved Use
and facility charges for transmission facility investments included in
the revenue requirement. Since the LAP transmission rates include LAP's
Scheduling, System Control, and Dispatch Service (SSCD Service) costs,
the revenue collected by WACM for providing this service is included as
a credit to the ATRR, as shown above.
Forward-Looking Transmission Rate
Effective October 2011, WAPA-RMR used a forward-looking
transmission rate methodology to calculate the ATRR to recover
transmission expenses and investments on a current basis rather than a
historical basis. As part of this methodology, WAPA-RMR projected
transmission costs two years into the future, relying on current year
actuals for approximately the first eight months of the year and
projecting the remaining four months of the year plus twelve additional
months. Western has determined, however, estimating the additional
twelve months introduced unnecessarily large true-ups. As a result,
starting in October 2016, WAPA-RMR is removing the additional twelve
months from the projection, thus only having to true-up the projected
costs for the four-month period of the current year. This method will
allow WAPA-RMR to more accurately match cost recovery with cost
incurrence. This method will be a change in the manner in which the
inputs for the charge are developed, rather than a change to the
formula rate itself.
When actual cost information for a year becomes available, WAPA-RMR
will continue to calculate the actual revenue requirement. Revenue
collected in excess of WAPA-RMR's actual revenue requirement will be
included as a credit in the ATRR in the following year. Similarly, any
under-collection of the revenue requirement will be recovered in the
following year. This true-up procedure ensures WAPA-RMR recovers no
more or no less than the actual transmission costs for the year. For
example, as the remaining four months of FY 2016 actual financial data
becomes available during FY 2017, the under-collection or over-
collection of revenue for FY 2016 can be determined. When the FY 2018
charge is calculated, it will include an adjustment for revenue under-
collection or over-collected in FY 2016.
Annual operation and maintenance expenses are projected using
budgeted amounts. Depreciation and interest expenses are projected
using historical amounts modified to account for projected additions to
plant in-service in the current year. Plant in-service expenses are
projected using historical amounts plus an estimate for projects
anticipated to be booked to plant in the current year and by removing
current year retirements.
Network Integration Transmission Service
WAPA-RMR has made no changes to the Network Service formula rate,
under Rate Schedule L-NT1. The monthly charge for Network Service will
[[Page 56636]]
continue to be the product of one-twelfth of the ATRR times the
transmission customer's load-ratio share.
The Provisional Formula Rate is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.018
The customer's load-ratio share is the ratio of its Network Service
load to the LAP Transmission System total load at the LAP system peak.
This is calculated on a rolling 12-month basis (12 coincident peak
average or 12-cp).
Firm Point-to-Point Transmission Service
The formula rate for Firm Point-to-Point Transmission service,
under Rate Schedule L-FPT1, has been modified in order to clarify the
denominator includes the reserved capacity for Firm Point-to-Point
Transmission Service, plus a 12-month average capacity value for
Network Service (including Federal Entitlements) rather than stating it
includes the ``LAP Transmission System total load.''
The Provisional Formula Rate is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.019
Just like the ATRR, the capacity used in this formula is determined
once annually and is used to calculate the Firm Point-to-Point
Transmission Service charges for the entire year.
Non-Firm Point-to-Point Transmission Service
WAPA-RMR has made no changes to the Non-Firm Point-to-Point
Transmission Service formula rate, under Rate Schedule L-NFPT1. It will
continue to equal the Firm Point-to-Point Transmission Service formula
rate. The charge for Non-Firm Point-to-Point Transmission Service may
be discounted based on market conditions, but will never be higher than
the Firm Point-to-Point Transmission Service charge.
The Provisional Formula Rate for Non-Firm Point-to-Point
Transmission Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.020
Penalty Rate for Unreserved Use of Transmission Service (Unreserved
Use)
WAPA-RMR has made no changes to the Unreserved Use Penalties rate,
under Rate Schedule L-UU1. LAP will continue to assess Unreserved Use
penalties against a transmission customer who has not secured reserved
capacity or exceeds their reserved capacity at any point of receipt or
any point of delivery. Unreserved Use may also include a transmission
customer's failure to curtail transmission when requested.
LAP transmission customers who engage in Unreserved Use are
assessed a penalty charge of 200% of LAP's approved transmission
service charge for Firm Point-to-Point Transmission Service, as well
as, any related ancillary services as follows: The Unreserved Use
penalty for a single hour of Unreserved Use will be based upon the
charge for daily Firm Point-to-Point Transmission Service. The
Unreserved Use penalty for more than one assessment for a given
duration (e.g., daily) will increase to the next longest duration
(e.g., weekly). The Unreserved Use penalty charge for multiple
instances of Unreserved Use (e.g., more than one hour) within a day
will be based on the charge for daily Firm Point-to-Point Transmission
Service. Multiple instances of Unreserved Use isolated to one calendar
week will result in a penalty based on the charge for weekly Firm
Point-to-Point Transmission Service. The penalty charge for multiple
instances of Unreserved Use during more than one week during a calendar
month will be based on the charge for monthly Firm Point-to-Point
Transmission Service.
Ancillary Services Discussion
In accordance with WAPA's OATT, ancillary services are needed with
transmission service to maintain reliability inside and among the
Control Areas affected by the transmission service. CRCM and LAPT
currently provide seven ancillary services under the OATT: Scheduling,
System Control & Dispatch Service (SSCD Service); Reactive Supply &
Voltage Control Support Service (VAR Support Service); Regulation and
Frequency Response Service (Regulation Service); Energy and Generator
Imbalance Services; and Operating Reserves--Spinning Reserve and
Supplemental Reserve Services. The Provisional Formula Rates for these
services are designed to recover the costs incurred for providing each
of the services. The Provisional Formula Rates are also applicable to
WACM when, as the Control Area operator, WACM provides services as
required or as requested by Transmission Service Providers and Load
Serving Entities.
The first two of these seven ancillary services, SSCD Service and
VAR Support Service, are services the Transmission Service Provider is
required to provide, or offer to arrange with the Control Area
operator, and the transmission customer is required to purchase.
The other five ancillary services, Regulation Service, Energy and
Generator Imbalance Services, and
[[Page 56637]]
Operating Reserves--Spinning Reserve and Supplemental Reserve Services,
are services the Transmission Service Provider must offer when
transmission service is used to serve load within the Transmission
Service Provider's Control Area. The transmission customer must
purchase these ancillary services from the Transmission Service
Provider, acquire the services from a third party, or self-supply the
services.
Scheduling, System Control, and Dispatch Service
WAPA-RMR has made no changes to the formula rate for SSCD Service,
under Rate Schedule L-AS1. The Provisional Formula Rate for SSCD
Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.021
The annual cost of scheduling personnel and related costs includes
annual costs associated with transmission scheduling (i.e., personnel,
facilities, equipment and software, as well as credits representing
fees for agent services).
The number of schedules per year is the yearly total of daily tags
which result in a schedule, excluding loss schedules.
WAPA-RMR allocates the charge of each schedule equally among all
Transmission Service Providers, both Federal and non-Federal, listed on
the schedule who are inside WACM. The Federal transmission segments are
exempt from invoicing, as costs for these segments continue to be
included in the Federal (LAP and CRSP) Transmission Service rates.
Reactive Supply and Voltage Control Service From Generation or Other
Sources Service
The formula rate for VAR Support Service, under Rate Schedule L-
AS2, has been modified. The numerator has been changed to include not
only LAP and CRSP's revenue requirements for Federal generation, but
also the annual cost of other resources used to provide VAR Support
Service and any applicable revenue credits related to WACM providing
service. The wording of the denominator has been changed in order to
clarify the denominator includes all ``transmission transactions''
requiring VAR Support Service rather than stating it includes ``load in
WACM'' requiring VAR Support Service.
The Provisional Formula Rate for VAR Support Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.022
The annual revenue requirement for VAR Support Service equals
revenue requirement for generation x % of resource capacity used for
VAR Support Service (1 minus power factor) plus other resources, e.g.,
energy and transmission costs for condensing Federal generating units
minus applicable revenue credits related to WACM providing service.
The transmission transactions requiring VAR Support Service equals
the transmission capacity use of the Federal transmission systems;
including Point-to-Point and Network Transmission Services on LAP and
CRSP transmission systems.
The unit charge is applicable to all LAP and CRSP transmission
transactions in excess of any Federal Entitlements and to any non-
Federal Transmission Service Providers for which WACM provides service.
WACM will charge based on the rate applicable under L-AS2 and any
resulting revenue will be treated as a revenue credit within the L-AS2
rate design. Federal Entitlements pay the same unit charge for this
service, but the charge remains bundled in the LAP and CRSP FES rates.
WAPA-RMR is eliminating previously granted LAP and CRSP
transmission service VAR Support Service charge exemptions, unless the
Federal transmission customer has generating resources capable of
providing VARs directly connected to a Federal transmission facility
owned and operated by CRSP and/or LAP and has executed a contract
stipulating all the provisions of their self-supply. Including the
previously exempted capacity in the VAR Support Service denominator
puts downward pressure on the VAR Support Service rate, which will
benefit the Federal transmission customers who are currently paying a
higher rate. Customers who have previously received an exemption will
now pay for VAR Support Service, but their rate will be significantly
lower than those who have paid for the service to date.
Regulation and Frequency Response Service
The formula rate for Regulation Service, under Rate Schedule L-AS3,
has been modified so the denominator includes wind and solar capacity
multipliers that will be applied to the installed nameplate capacity
value of wind and solar generators. The basis for application of the
multiplier is the growth WACM has seen in VERs, requiring WAPA-RMR to
purchase additional regulation and frequency response services. WAPA-
RMR developed a ``Regulation Analysis'' tool that allows WAPA-RMR to
see the hourly impacts of both load and traditional generation and VERs
on WACM and determine the amount of regulation and following resource
consumption. For the period of July 2014-June 2015, the tool indicated
that wind VERs required 225% more regulation and frequency response
services than load and traditional generation require. WACM does not
have a significant amount of solar generation impacting its Balancing
[[Page 56638]]
Authority area and, therefore, does not have sufficient solar
generation data available to perform a thorough analysis at this time.
Therefore, WAPA-RMR will identify a solar capacity multiplier of 100%
until such a time a different value is warranted, i.e., if and when
solar VERs become more prevalent in the WACM footprint.
The Provisional Formula Rate for Regulation Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.023
The total annual revenue requirement for Regulation Service
includes such costs as LAP and CRSP plant costs, purchases of
regulation products, purchases of power in support of the generating
units' ability to regulate, purchases of transmission for regulating
units who are trapped geographically inside another Balancing Authority
area, purchases of transmission required to relocate energy due to
regulation/load following issues, and lost on-peak sales opportunities
resulting from the requirement to generate at night to permit units to
have `down' regulating capability.
The total load for Regulation Service equals load inside WACM
requiring Regulation Service, plus the installed nameplate capacity of
wind generators serving load inside WACM times the wind capacity
multiplier, plus the installed nameplate capacity of solar generators
serving load inside WACM times the solar capacity multiplier. The
capacity multipliers will be updated yearly to coincide with the normal
annual formula rate updates (each October 1).
The capacity required for regulation is subject to re-evaluation
every year. Historically, the regulation requirement from Federal
generators had been 75 MW (55 MW from LAP and 20 MW from CRSP).
Starting in the FY 2014 rate design, following the CRSP transmission
system being reconfigured into WACM, WAPA-RMR and WAPA-CRSP agreed to
assign the regulation requirement to LAP and CRSP based on a ratio of
LAP, CRSP, and WACM individual contract requirements to the total of
all requirements. Using this ratio share methodology, to annually
update the ratio shares, allows LAP and CRSP to each supply resources
sufficient to cover their own requirement (FES and transmission sales),
plus a portion of WACM's requirement (Balancing Authority agreements),
with LAP being capped at 55 MW and CRSP being capped at 40 MW--the
historical commitment from each Project. In addition, WAPA-RMR made
changes within the rate design to assign only the proper share of each
Project's plant costs, and any applicable purchases and transmission
costs, to the LAP and CRSP Federal Entitlements. This change ensures
the Federal Entitlements are not being improperly assigned costs
related to WAPA-RMR's purchase of additional regulation and frequency
response services needed for VERs or increased sales of transmission
service. The methodology for determining annual plant costs is
unchanged. First, the annual costs for Federal plants used to regulate
is calculated by multiplying the net plant costs by the annual fixed
charge rate for generation. Then, the annual cost per unit of capacity
for regulating plants is calculated by dividing the annual costs for
regulating plants by the capacity of those plants. Next, the portion of
the total annual plant costs to be recovered in the Regulation Service
rate is calculated by multiplying the annual unit cost by the amount of
capacity required for regulation from those Federal plants.
The analysis to determine the capacity multipliers will be
completed on a monthly basis for WAPA-RMR to determine a 12-month
average. WAPA-RMR will use the most current analysis data available,
typically July of the prior year to June of the current year, for the
annual formula rate updates. The capacity multipliers will be posted to
the Web sites along with the annual charges.
The formula rate for Regulation Service has two different
applications:
1. Load-based Assessment: The charge is assessed on an entity's
auxiliary load (total metered load less applicable Federal
Entitlements) and on the amount stated in any Balancing Authority or
other transmission service agreements. The charge is also applied to
the installed nameplate capacity of all VER, including wind and solar
generators, serving load inside the WACM Control Area, multiplied by
the applicable annually-calculated capacity multiplier.
2. Self-provision Assessment: WAPA-RMR allows entities with AGC to
self-provide for all or a portion of their loads. Entities with AGC are
known as sub-Balancing Authorities and must meet various criteria, as
listed in the rate schedule.
WACM does not regulate for the difference between the output of a
variable generator located inside the WACM Control Area and a delivery
schedule from a generator serving load located outside the WACM Control
Area. In addition, WACM may allow entities to self- or third-party
supply their regulation requirement. As such, Rate Schedule L-AS3 will
continue to include the following ``alternative arrangements'':
Exporting Variable Generator Requirement
WACM does not provide Regulation Service to variable resources
inside the WACM Control Area which are not used to serve load inside
the WACM Control Area. An entity that exports the output from a
variable generator to another Balancing Authority will be required to
dynamically meter or dynamically schedule that resource out of WACM to
[[Page 56639]]
another Balancing Authority unless arrangements, satisfactory to WACM,
are made for that entity to acquire this service from a third party or
self-supply (as outlined below).
Self- or Third-Party Supply
WACM may allow an entity to supply some or all of its required
regulation, or contract with a third party to do so. This entity must
have revenue quality metering at every load and generation point,
accurate as defined by North American Electric Reliability Corporation
(NERC), to include MW flow data availability at 6-second (or smaller)
intervals. WACM will evaluate the entity's metering,
telecommunications, and regulating resource, as well as the required
level of regulation, and determine whether the entity qualifies to
self-supply under this provision. If approved, the entity is required
to enter into a separate contract with WACM which will specify the
terms of the self-supply agreement.
Imbalance Services
WAPA-RMR has made no changes to the Energy Imbalance Service or
Generator Imbalance Service formula rates, under Rate Schedules L-AS4
and L-AS9.
Energy Imbalance
WAPA-RMR calculates energy imbalances and assesses penalties based
on a three deviation band structure as follows:
1. An imbalance of less than or equal to 1.5 percent of metered
load (or 4 MW, whichever is greater) for any hour is settled
financially at 100 percent of the WACM weighted average hourly energy
price for that hour.
2. An imbalance between 1.5 percent and 7.5 percent of metered load
(or 4 to 10 MW, whichever is greater) for any hour is settled
financially at 90 percent of the WACM weighted average hourly energy
price when net energy scheduled exceeds metered load or 110 percent of
the WACM weighted average hourly energy price when net energy scheduled
is less than metered load.
3. An imbalance greater than 7.5 percent of metered load (or 10 MW,
whichever is greater) for any hour is settled financially at 75 percent
of the WACM weighted average hourly energy price when net energy
scheduled exceeds metered load or 125 percent of the WACM weighted
average hourly energy price when net energy scheduled is less than
metered load.
The term ``metered load'' is defined to be ``metered load adjusted
for losses.'' Also, each hour stands on its own; there is no monthly
netting. Hourly accounting encourages the customer to more closely
follow its load.
Generator Imbalance
Generator Imbalance Service applies to all:
1. Jointly-owned generators (unless arrangements are made to
allocate actual generation to each individual owner),
2. Variable generators (unless arrangements are made to assess the
variable generator under Rate Schedule L-AS4), and
3. Non-variable generators serving load outside the WACM Control
Area.
An entity's solely-owned non-variable generator inside the WACM
Control Area will be included in the entity's Energy Imbalance Service
calculation.
The formula rate and pricing for Generator Imbalance Service will
be identical to the formula rate for Energy Imbalance Service, with the
following exceptions:
1. Bandwidths will be calculated as a percentage of metered
generation, since there is no load.
2. Variable generators will be exempt from the outer bandwidth. All
imbalances greater than 1.5 percent of metered generation are subject
only to a 10 percent penalty.
Penalty Elimination
In any hour, WAPA-RMR may charge a customer a penalty for either
Generator Imbalance Service or Energy Imbalance Service, but not both.
Minimum Bandwidth
WAPA-RMR has concluded that strict imposition of FERC Order 890
parameters for minimum bandwidth (2 MW) is unnecessarily restrictive to
small customers. LAP's Federal Entitlement may be the only resource a
small customer has available for following load and staying within
prescribed bandwidths. WAPA-RMR requires customers to schedule their
Federal Entitlements 48-hours in advance, which is unique in the
industry. With weekends and holidays, this schedule may have to be
submitted several days in advance. This situation is exacerbated by the
requirement scheduling be done in whole MWs, while loads (and
imbalance) are measured to the kilowatt. Due to these circumstances,
WAPA-RMR will not start assessing penalties after a 2 MW deviation and
will continue to employ a 4 MW minimum bandwidth. No costs are being
passed to customers with larger loads due to the larger minimum
bandwidth. WAPA-RMR has employed this practice, with FERC approval,
since March 2004.\1\
---------------------------------------------------------------------------
\1\ FERC's initial confirmation and approval was in Docket No.
EF04-5182-000. See United States Department of Energy, Western Area
Power Administration, 110 FERC ] 62,084 (January 31 2005).
---------------------------------------------------------------------------
Settlement and Pricing
All imbalances will be settled financially using WACM pricing for
each hour. The imbalance for each applicable entity shall be totaled
and netted to determine WACM's aggregate energy condition. The sign of
the aggregate energy condition for WACM will determine whether sale or
purchase pricing will be used in all bandwidths (surplus hours will use
sale pricing, and deficit hours will use purchase pricing).
Expansion of the Bandwidth
Expansion of the bandwidth may be allowed during the following
instances: 1) response to the loss of a physical resource and 2) during
transition of large base-load thermal resources (capacity greater than
200 MW) between off-line and on-line following a reserve sharing group
response, when the unit generates less than the predetermined minimum
scheduling level. Details are as follows:
1. WAPA-RMR will expand the bandwidth during an event established
by a WAPA-recognized reserve-sharing group, such as the Rocky Mountain
Reserve Group. A response made by a member of the reserve group will be
accounted for by an after-the-fact schedule. Normally, these events are
1-2 hours in duration. Since such events are accounted for by after-
the-fact schedules, no expansion will be necessary for the entity
receiving the response. The expanded bandwidth will apply to the
customer who increased generation in response to the event and will be
based on the magnitude of that customer's generation response.
2. During transition of large base-load thermal resources (capacity
greater than 200 MW) between off-line and on-line following a reserve
sharing group response, WAPA-RMR may expand the bandwidth (eliminate
all penalties) during hours in which the unit generates less than the
predetermined minimum scheduling level. WAPA-RMR may not have access to
information necessary to determine these hours for some generators and
will not have access to information on events for reserve sharing
groups outside WACM. Customers should request bandwidth expansion in
hours in which they believe it to be warranted. WAPA-RMR may request
additional information for its decision whether to
[[Page 56640]]
grant the request. Bandwidth will not be expanded when the customer's
ramping services have been acquired by another entity.
Balancing Authority Operating Constraints
WAPA-RMR reserves the right to offer no credit for Imbalance
Service over-deliveries during times of WACM operating constraints,
such as ``must-run'' hydrologic conditions, or times when WACM cannot
dispose of surplus energy. Due to the unpredictable nature of hour-to-
hour energy imbalances and the very short notice for disposition of
over deliveries, WACM may experience some hours of zero value sales and
may eliminate credits in these hours.
If WACM is unable to dispose of the entire net over-delivery and
the operating criteria for the balancing authority are not met,
reliability oversight agencies, such as the NERC or the Western
Electricity Coordinating Council may charge WACM with violating
applicable standards. In these cases, WAPA-RMR reserves the right to
eliminate credit to customers and require customers to share in any
costs incurred as a result of such violations. Also, there may be
conditions under which customers who under-deliver may share in any
costs incurred by WAPA-RMR as a result of violations asserted by
reliability oversight agencies.
Operating Reserves--Spinning and Supplemental Reserve Services
WAPA-RMR has made no changes to the Operating Reserve Services
formula rates, under Rate Schedules L-AS5 and L-AS6. LAPT and WACM have
no Reserves available for sale. At a customer's request, WAPA-RMR will
purchase and pass-through the cost of Operating Reserves, plus the cost
of any activation energy, plus a fee for administration. The customer
will be responsible for providing the transmission to deliver the
Operating Reserves purchased.
Transmission Losses Service Discussion
WAPA-RMR has made no changes to the Transmission Losses Service
formula rate, under Rate Schedule L-AS7. WACM provides Transmission
Losses Service to all Transmission Service Providers who market
transmission inside the WACM Control Area. Transmission losses are
assessed for all real-time and prescheduled transactions on
transmission facilities inside the WACM Control Area. Customers may
settle financially or with energy. The pricing for this service will be
the WACM weighted average hourly purchase price.
LAP Marketing Service Discussion
WAPA-RMR has implemented a new LAP Marketing rate schedule, L-M1,
applicable to the sale of LAP surplus energy and capacity products. The
schedule includes reserves, regulation, and frequency response. If LAP
surplus products are available, the charge will be determined based on
market rates, plus administrative costs. The customer will be
responsible for acquiring transmission service necessary to deliver the
product(s). This rate schedule is not applicable to transmission
service and therefore, is not provided through WAPA's OATT.
Rate Schedule Discussion
Editorial changes have been made to the rate schedules for better
clarification and to ensure greater consistency between WAPA's regions
and the OATT, as applicable. In addition, the rate schedules will no
longer include the unit charge(s) and be updated each year. Annual
charges will instead be posted on WAPA's Web sites listed above under
``Provisional Formula Rates'' and on the LAPT and CRCM OASIS Web sites.
Comments
WAPA-RMR received multiple comments during the public consultation
and comment period. Comments have been paraphrased where appropriate,
without compromising the meaning of the comments.
Comment 1: Customer commented they are supportive of the following
proposals: (1) Leave unchanged the existing formula rate for
calculating the ATRR; (2) shorten the forward-looking transmission rate
projection period; (3) incorporate minor edits to the network formula
rate schedule; (4) modify the denominator for Firm and Non-firm Point-
to-Point transmission service; (5) incorporate minor edits to the
Transmission Losses Service formula rate schedule; (6) not modify the
Unreserved Use formula rate and to make minor edits to the formula rate
schedule; (7) not modify the SSCD Service formula rate and to make
minor edits to the formula rate schedule; and (8) leave unchanged the
Energy Imbalance, Generator Imbalance, and Spinning and Supplemental
Reserve Services formula rates.
Response 1: WAPA-RMR acknowledges the Customer's support of these
proposals.
Comment 2: Customer commented they support WAPA-RMR's proposal
regarding the Transmission Losses Service rate; however, customer
recommends WAPA-RMR perform a transmission loss study if the latest
loss study was performed more than five years ago. Customer also
recommends WAPA-RMR perform any loss study through a formal public
process.
Response 2: This comment regarding the loss study is outside the
scope of this rate process, considering WAPA-RMR's formula rate
schedule does not address the method for calculating the loss rate or
the process for determining the loss rate, but rather only the method
in which WACM is to be compensated for providing the losses. However,
WAPA-RMR does perform loss studies periodically. In fact, several
months ahead of this rate process, due to various changes within the
WACM Control Area, WAPA-RMR began conducting a loss study to determine
the appropriate loss rate to be in effect starting October 1, 2016.
WAPA-RMR has shared the methodology and the result of this loss study
with its customers; however, WAPA-RMR no plans to conduct formal public
processes in order to conduct loss studies and implement loss rates.
Comment 3: Customer commented they do not support WAPA-RMR's
proposed changes to the VAR Support Service rate, as WAPA-RMR has not
provided the underlying data to support the rate. They would like
details of the costs and the methodology to which those costs are
assigned to WAPA-RMR's FES customers and to WAPA-RMR's transmission
customers. Specifically, the customer asked whether: (1) The
denominator includes all, or a portion of, CRSP long-term point-to-
point reservations supporting hydropower, Customer Displacement Power
(CDP), and Western Replacement Power (WRP) deliveries; (2) the annual
maximum Contract Rate of Delivery (CROD) for LAP FES deliveries is a
component of the VAR Support Service denominator; and (3) whether the
Network Service load will be derived from prior year actuals or will it
be derived from a forecast of the rate year?
Response 3: Since WAPA-RMR is seeking approval of formula rates for
services previously approved, with the exception of the new LAP
Marketing formula rate for the Sales of Surplus Products, WAPA-RMR
focused on highlighting the proposed changes to the formulas of those
previously approved formula rates. Also, since WAPA-RMR did not have
all the applicable annual data necessary to update the formulas until
the June-July timeframe for the upcoming fiscal year rate, WAPA-RMR was
not able to
[[Page 56641]]
include data for the FY 2017 rates in the proposed formulas during the
rate process. In order to provide the Customer with the requested
details, WAPA-RMR has prepared the table below using the FY 2016 rate
data, since data for the FY 2017 rate was not yet available, with
modifications to the numerator to include the addition of the ``Other
Resources'' and to the denominator in order to demonstrate how the
elimination of the exemptions will impact the rate, as proposed.
Reactive Supply and Voltage Control From Generation and Other Sources Service
[Example FY 2017 rate design using FY 2016 rate data]
----------------------------------------------------------------------------------------------------------------
FY 17 example FY 16 % change
----------------------------------------------------------------------------------------------------------------
Revenue Requirement
----------------------------------------------------------------------------------------------------------------
LAP Annual Fixed Charge Rate.................................... 17.425% 17.425% 0
Total Net LAP Generation Plant Costs............................ $344,385,364 $344,385,364 0
Annual Cost of LAP Generation................................... $60,010,711 $60,010,711 0
LAP Capacity Used for VAR (1 minus power factor)................ 5.984% 5.984% 0
LAP Plant Costs for VAR......................................... $3,590,825 $3,590,825 0
SLCA/IP Annual Fixed Charge Rate................................ 24.84% 24.84% 0
-----------------------------------------------
Total Net SLCA/IP Generation Plant Costs.................... $177,435,000 $177,435,000 0
Annual Cost of SLCA/IP Generation............................... $44,072,729 $44,072,729 0
SLCA/IP Capability Used for VAR (1 minus power factor).......... 5.670% 5.670% 0
SLCA/IP Plant Costs for VAR..................................... $2,498,924 $2,498,924 0
Other Resources: Condensing *NEW................................ $446 $0 100
Revenue from VAR Support for FY 2014 non-firm PTP............... -$842,233 -$842,233 0
Revenue from WACM Transactions *NEW............................. -$0 -$0 0
Annual VAR Support Revenue Requirement.......................... $5,247,962 $5,247,516 0.01
----------------------------------------------------------------------------------------------------------------
Transmission Transactions Requiring VAR Support (kW)
----------------------------------------------------------------------------------------------------------------
LAP FES (12-mo avg of CROD)..................................... 582,231 582,231 0
LAPT............................................................ 670,622 314,744 113
CRSP FES (CDP, WRP, merchant)................................... 4,758,030 880,507 440
CRCM............................................................ 1,025,188 903,188 14
-----------------------------------------------
Total Transmission Transactions Requiring VAR Support (kW), 7,036,071 2,680,670 163
* INCLUDING ELIMINATED EXEMPTIONS..........................
----------------------------------------------------------------------------------------------------------------
Rate
----------------------------------------------------------------------------------------------------------------
Monthly Rate/kW-mo.............................................. $0.066 $0.163 -62
----------------------------------------------------------------------------------------------------------------
Based on customer feedback, and to avoid confusion, rather than
including the non-Federal Transmission Service Provider's capacity
usage as another component of the denominator as WAPA-RMR proposed, if
WACM, as the Control Area operator, supplies any VAR Support on behalf
of a non-Federal Transmission Service Provider, WACM will assess
charges based on the unit rate applicable under L-AS2 and the resulting
revenue will instead be treated as a revenue credit within the L-AS2
rate design in a subsequent year. As such, WAPA-RMR has changed the
denominator to now read ``Transmission Transactions that Require VAR
Support Service (kW).'' The denominator will continue to include only
LAPT and CRCM's transmission transactions, both point-to-point and
Network Service, including CRSP's FES, CDP, and WRP deliveries and
LAP's FES deliveries. It will continue to be based on LAPT and CRCM's
Network 12-month coincident peak (12cp) values from the most recent
billing month available (normally May), and LAPT and CRCM's total
point-to-point reservations expected to be in place during the rate
year.
Comment 4: Customer recommends WAPA-RMR provide additional
information and an example regarding the component in the denominator
``Transmission Capacity Usage by Other Transmission Service Providers
inside WACM.'' Customer seeks to better understand how third party
Transmission Service Providers are a part of the VAR Support Service
rate for a service WAPA-RMR proposes they are providing only for the
LAPT and CRCM transmission systems located within the WACM Control
Area. Customer also requests additional information regarding how WACM
may assess VAR Support Service charges to Transmission Service
Providers located in the Control Area found to not be providing
sufficient VAR support.
Response 4: As discussed in the Proposed FRN and in the Customer
Brochure, WACM, as the Control Area operator, is not currently charging
any non-Federal Transmission Service Providers for VAR Support Service,
so the proposed capacity component is 0 MW at this time. WACM had
previously determined that the non-Federal Transmission Service
Providers within the WACM Control Area have adequate non-Federal
generation resources and/or other VAR compensating devices connected to
their transmission systems to self-provide VAR support for the
transactions on their systems. The potential exists, however, where
WACM, using facilities under its control, could be providing VAR
support on behalf of a non-Federal Transmission Service Provider
(directly or indirectly). As such, language in L-AS2 has been revised
to clarify how the formula rate applies to CRCM and LAPT as
Transmission Service Providers and to WACM as the Control Area
operator. If and when deemed necessary, WACM will assess charges to
Transmission Service Providers using the unit rate applicable under L-
AS2 against either the Transmission Service Provider's
[[Page 56642]]
reserved capacity or the tagged megawatt usage of the Transmission
Service Provider's transmission customers.
As stated above, WAPA-RMR is removing this proposed capacity
component from the denominator and is instead going to treat any future
revenue from these potential WACM transactions as revenue credits
within the numerator of the VAR Support Service rate design.
Comment 5: Customer requests additional information regarding the
entity from which a transmission customer will be obtaining VAR Support
Service as part of the use of transmission located within the WACM
Control Area. It is not clear if the WACM Control Area is the provider
of VAR Support Services and LAPT and CRCM Transmission Service
Providers are providing VAR support on behalf of the WACM Control Area
or if individual Transmission Service Providers within the WACM Control
Area are independently providing VAR support. Customer also seeks to
better understand the role and contribution of non-Federal generation
resources located inside the WACM Control Area and how those
contributions support VAR requirements, as these activities are
primarily performed on a local basis and not necessarily separated by
Transmission Service Provider ownership within the Control Area
boundaries.
Response 5: According to WAPA's OATT, VAR Support Service can be
provided directly by the Transmission Service Provider if the
Transmission Service Provider is the Control Area operator or
indirectly by the Transmission Service Provider making arrangements
with the Control Area operator performing this service for the
Transmission Service Provider's system. As such, CRCM and LAPT provide
VAR Support Service directly to the LAP and CRSP transmission systems.
CRCM and LAPT assess charges to their transmission customers using a
rate design that includes only the portion of the Federal generation
costs applicable to VAR support.
WACM, as the Control Area operator, through coordinated efforts
with the Transmission Service Providers, performs this service for the
non-Federal Transmission Service Providers within the Control Area. As
previously discussed, WACM had previously determined that the non-
Federal Transmission Service Providers within the WACM Control Area
have adequate non-Federal generation resources and/or other VAR
compensating devices connected to their transmission systems to self-
provide VAR support for their systems. In these cases, WACM is not the
provider of VAR support and therefore does not charge the non-Federal
Transmission Service Providers for performing this service on their
behalf. If WACM determines a Transmission Service Provider does not
have adequate VAR resources, WACM may assess charges to the
Transmission Service Provider under L-AS2.
Comment 6: Customer recommends WAPA-RMR provide a list of
generators and other transmission equipment providing VAR support for
the LAP and CRSP transmission systems located within the WACM Control
Area.
Response 6: The generators providing VAR support for LAP and CRSP
transmission systems and whose costs are included in the L-AS2 rate
design are: Alcova, Big Thompson, Blue Mesa, Boysen, Crystal, Estes,
Flaming Gorge, Flatiron, Fontenelle, Fremont Canyon, Glen Canyon,
Glendo, Green Mountain, Guernsey, Heart Mountain, Kortes, Morrow Point,
Mary's Lake, Molina, Mt. Elbert, Polehill, Seminoe, Towaoc, Willow
Creek, and Yellowtail. The costs for the transmission equipment (i.e.,
reactors and shunt capacitors) providing VAR support for the LAP and
CRSP transmission systems are not included in the L-AS2 rate design,
but are instead included in each Project's respective transmission
rate.
Comment 7: Customer requests additional information regarding the
process in which WAPA-RMR may exclude charges for VAR Support Service
for a transmission customer. Customer seeks to better understand the
application and the governing agreement used to qualify a transmission
customer for exemption, i.e., is the exclusion an all or nothing
election or is there a pro-rated off-set or credit for eligibility
exemption?
Response 7: According to WAPA's OATT, VAR Support Service is a
service Transmission Service Providers must offer for each transaction
on its transmission system and the transmission customers must
purchase. As discussed in the Customer Brochure, LAPT and CRCM may
allow a LAP or CRSP transmission customer who requests an exemption to
receive an exemption from VAR Support Service charges related to its
LAP or CRSP transmission service if they have a generating plant
directly connected to the LAP or CRSP transmission system. The
generator must have the capability to provide VARs and the transmission
customer must execute a contract with WAPA-RMR stipulating all the
provisions of their VAR support self-supply. WAPA-RMR will work with
customers to evaluate their particular circumstances.
Comment 8: Customer commented they are generally supportive of the
concept to more accurately allocate costs based on cost causation
principals by applying a cost multiplier; however, Customer has
concerns regarding how WAPA-RMR plans to assess Regulation Service
charges under its proposal for three example scenarios: (1) A
distribution cooperative purchases the output of a 2 MW wind farm
connected to a 34.5-kV distribution system from a third party. The
distribution system is connected to a 34.5/115-kV transformer and is
metered on the low side of the transformer. The maximum output of the
wind farm is less than the local load served through the 34.5/115-kV
transformer connected off the transmission system; (2) A retail
customer of a distribution cooperative with a load of 15 MW installs a
10 MW wind farm behind its retail revenue meter to self-supply a
portion of its load requirements; and (3) A transmission customer
purchases the output of a solar facility located physically outside of
the WACM Control Area and the transmission customer requests to
dynamically meter the solar facility into the WACM Control Area and
WACM approves the request.
With respect to scenarios 1 and 2, Customer considers them to not
be subject to Regulation Service VER charges from WAPA-RMR for several
reasons. First, Customer does not own, control, or lease the resources.
Second, Customer cannot designate these resources as Network resources.
Third, the VER is located on the underlying distribution system or
behind a retail customer's revenue meter, and the resources do not
utilize transmission located inside the WACM Control Area. Fourth,
local load self-supply by Customer's member owners allows for member
owners to serve up to five percent of their load by non-customer owned,
controlled, or leased resources. Customer is responsible for delivering
resources it owns, controls, or leases to the remaining load not self-
provided by its members. Customer supports cost causation principles to
allocate regulation costs, however, Customer does not support costs
shifted to it as a transmission customer of WAPA-RMR for resources for
which Customer has no responsibility and over which Customer has no
control. Customer believes they should be subject only to Regulation
Service VER charges for VER they own, control, or lease and which is
located within the WACM Control Area.
Customer requests WAPA-RMR to identify the entity responsible for
[[Page 56643]]
specific eligible charges for Regulation Service for VER located in the
WACM Control Area. Are these resources subject to Regulation Service
charges under WAPA's OATT? Customer requests WAPA-RMR provide the
supporting OATT language of WAPA-RMR's determination of the responsible
entity.
Response 8: The application of the load-based assessment to the
installed nameplate of VER serving load inside the WACM Control Area
has been in place since June 2006. WAPA-RMR did not propose a change to
the assessment. WAPA-RMR proposed to include only the ``variable
capacity multipliers'' to the assessment.
All loads inside the Control Area consume regulation; therefore,
WACM, by default, provides Regulation Service to all loads inside the
Control Area. As such, WAPA-RMR's Regulation Service formula rate
schedule L-AS3 is a combined rate schedule applicable to CRCM and LAPT
as Transmission Service Providers and to WACM as the Control Area
operator.
WAPA-RMR's OATT is applicable to Federal transmission service, not
to services provided by the WACM Control Area. WAPA-RMR establishes
Business Practices to document policies/practices applicable to the
Control Areas. WAPA's OATT does not specifically address how Regulation
Service is to be charged under these scenarios, but WAPA-RMR has posted
a Business Practice that specifically addresses behind the meter
generation. Based on customer feedback, WAPA-RMR will pursue providing
more specific details related to these types of scenarios in a new
Business Practice.
Since 2006, L-AS3 has been applicable to all variable generators
inside the WACM Control Area. WACM does not differentiate where the
variable resource is connected to any elements of the transmission
system, e.g., directly connected to a transmission line, direct
interconnection to a substation, or connected to the distribution
system behind the customer's meter. The Regulation Service provided by
WACM for the variable resource is to mitigate the minute-to-minute
variation of the generator output. The Regulation need is the same no
matter where the variable resource is connected. WAPA-RMR acknowledges
any resource behind the customer's meter reduces the customer's energy
requirements, but the transmission service and ancillary services for
said load is not decreased by the variable resource behind the
customer's meter. Variable resource, by definition, is intermittent,
non-dispatchable, and has a unique energy profile whether it is netted
to load or sent elsewhere.
When a Federal transmission customer or a WACM customer purchases
the output of a variable resource located outside the WACM Control
Area, and statically schedules it into WACM, the application of the
load-based assessment on the VER nameplate is not applicable since the
regulation service for the resource is being provided by the host or
native Balancing Authority (where the VER resides). If a Federal
transmission customer or a WACM customer requests to dynamically
transfer the output of a VER that resides in another Balancing
Authority to the WACM Control Area, WACM will work with the customer to
dynamically transfer the VER from the native Balancing Authority to the
WACM Control Area. Under this condition, and with installation of
proper telemetry and inclusion of the variable resource in its AGC,
WACM will be providing the Regulation Service for the VER generator and
the application of the load-based assessment on the VER nameplate is
applicable.
Comment 9: Customer recommends WAPA-RMR provide the quantity of
renewable resources comprised of solar generation located within the
WACM Control Area that would result in WAPA-RMR applying a capacity
multiplier other than 1.00.
Response 9: As stated in the Proposed FRN, WACM does not have a
significant amount of solar generation impacting its Control Area;
therefore, does not have sufficient solar generation data available to
perform a thorough analysis to determine a more specific solar
multiplier at this time. The multipliers are determined based on the
size of the resource, as well as the behavior and diversity of those
resources and how they impact the Control Area, so a specific quantity
of solar generation which would result in changing the multiplier is
unknown at this time.
Comment 10: Customer recommends in lieu of an annual update to the
variable capacity multiplier, if the annual update calculation results
in a multiplier change of .25 or more (higher or lower) from the
previous multiplier, then an update to the multiplier would be
appropriate. Customer also recommends WAPA-RMR update the multiplier in
increments of 0.25.
Response 10: WAPA-RMR conducted an analysis which shows allowing a
difference in the multiplier up to 0.24 would result in a cost shift in
the rate design of approximately 3-4% between the VER and non-VER
customers. WAPA-RMR has determined that this cost shift is not
warranted because the correct multiplier will be known at the time the
annual rate design is updated.
Comment 11: Customer asked if WAPA-RMR anticipates the total
revenue collection for regulation will increase due to the rate
proposal.
Response 11: The only proposed change to the Regulation Service
formula rate was to implement the ``variable capacity multipliers.''
This change will impact the denominator of the rate and will change how
much of the revenue requirement is collected from customers with VER
and from customers without VER, but it has no impact on the total
revenue collected because it has no impact on the revenue requirement.
Comment 12: Customer commented they do not support WAPA-RMR's
current proposal to develop a new rate schedule for LAP Marketing to
sell surplus products as they believe it, as currently written,
provides very little detail and it is unclear how the proposal will be
used by WAPA-RMR in its management of delivery of hydropower to FES
customers as well as the marketing of excess non-firm transmission to
transmission customers available after meeting FES delivery
obligations. The new rate schedule appears to support the marketing of
available products and resources to wholesale electricity market
participants at market-based rates in lieu of offering products to FES
customers on a cost-based basis. They recommend WAPA-RMR not pursue
development of the proposed L-M1 rate schedule at this time, even
though they agree WAPA-RMR should have a more formal level of
documentation of new products it may have available to offer to its FES
customers and agrees this should be supported through the formal public
process.
If WAPA-RMR moves forward with the proposal, Customer recommends if
excess products are available for sale (regardless of duration) the FES
customers are provided first opportunity to purchase excess products
from WAPA-RMR on a cost-based delivery basis and not at prevailing
market prices. Customer also recommends WAPA-RMR provide to its FES
customers the supporting rate sheet data for products offered to FES
customers so they can better understand the cost drivers for a product.
Response 12: WAPA-RMR intends to use this rate schedule to offer
products to FES and other customers. LAP cannot always sell these
surplus products at cost to FES or other customers due to more
competitive market options; therefore, the rates have been
[[Page 56644]]
discounted to make the sales possible. As such, WAPA-RMR is not able to
provide specific rate sheet data for these types of transactions. The
revenue LAP receives from these surplus sales offsets expenses, which
is a benefit to the LAP power rate and all FES customers.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents used by WAPA-RMR to develop the Provisional Formula Rates are
available for inspection and copying at the Rocky Mountain Regional
Office, 5555 East Crossroads Boulevard, Loveland, Colorado. Many of
these documents are also available on WAPA-RMR's Web site located at
https://www.wapa.gov/regions/RM/rates/Pages/2017-rate-adjustment.aspx.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969, 42 U.S.C. 4321-4347; the Council on Environmental Quality
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), WAPA
has determined this action is categorically excluded from the
preparation of an environmental assessment or an environmental impact
statement. A copy of the categorical exclusion determination is
available on WAPA-RMR's Web site located at https://www.wapa.gov/regions/RM/environment/Pages/CX2016.aspx. Look for file entitled,
``2016-077 Prop Formula Rate Adjust for Transmission Ancillary Services
and Sale of Surplus Prods 031016.''
Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Submission to the Federal Energy Regulatory Commission
The formula rates herein confirmed, approved, and placed into
effect on an interim basis, together with supporting documents, will be
submitted to FERC for confirmation and final approval.
ORDER
In view of the foregoing, and under the authority delegated to me,
I confirm and approve on an interim basis, effective the first full
billing period on or after October 1, 2016, formula rates for LAP
Transmission; CRSP, LAP, and WACM Ancillary Services; WACM Transmission
Losses, and LAP Marketing Sales of Surplus Products under Rate
Schedules L-NT1, L-FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-
AS5, L-AS6, L-AS7, L-AS9, and L-M1. These rate schedules shall remain
in effect on an interim basis, pending FERC's confirmation and approval
of them, or substitute formula rates, on a final basis through
September 30, 2021.
Dated: August 12, 2016
Elizabeth Sherwood-Randall
Deputy Secretary of Energy
Rate Schedule L-NT1
ATTACHMENT H to OATT
(Supersedes Rate Schedule L-NT1 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
NETWORK INTEGRATION TRANSMISSION SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
The Transmission Customer will compensate the Loveland Area
Projects Transmission Service Provider (LAPT) each month for Network
Integration Transmission Service under the applicable Network
Integration Transmission Service Agreement and the Annual Transmission
Revenue Requirement described herein.
Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.024
A calculated Annual Transmission Revenue Requirement will go into
effect every October 1 based on updated financial projections and the
true-up of previous projections. The Annual Transmission Revenue
Requirement will be posted on the LAPT Open Access Same-Time
Information System Web site.
Rate Schedule L-FPT1
SCHEDULE 7 to OATT
(Supersedes Rate Schedule L-FPT1 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
LONG-TERM FIRM AND SHORT-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
The Transmission Customer shall compensate the Loveland Area
Projects Transmission Service Provider (LAPT) each month for reserved
capacity under the applicable Firm Point-to-Point Transmission Service
Agreement and the formula rate described herein.
Formula Rate
[[Page 56645]]
[GRAPHIC] [TIFF OMITTED] TN22AU16.025
A calculated charge will go into effect every October 1 based on
the formula above, updated financial and load projections, and the
true-up of previous projections. The annual charge will be posted on
the LAPT Open Access Same-Time Information System (OASIS) Web site.
Discounts
Three principal requirements apply to discounts for transmission
service as follows: (1) Any offer of a discount made by LAPT must be
announced to all eligible customers solely by posting on the LAPT OASIS
Web site; (2) any customer-initiated requests for discounts, including
requests for use by LAP Marketing, must occur solely by posting on the
LAPT OASIS Web site; and (3) once a discount is negotiated, details
must be immediately posted on the LAPT OASIS Web site. For any discount
agreed upon for service on a path, from Point(s) of Receipt to Point(s)
of Delivery, LAPT must offer the same discounted transmission service
rate for the same time period to all eligible customers on all
unconstrained transmission paths that go to the same point(s) of
delivery on the transmission system.
Rate Schedule L-NFPT1
SCHEDULE 8 to OATT
(Supersedes Rate Schedule L-NFPT1 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN POWER AREA ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
NON-FIRM POINT-TO-POINT TRANSMISSION SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
The Transmission Customer will compensate the Loveland Area
Projects Transmission Service Provider (LAPT) for Non-Firm Point-to-
Point Transmission Service under the applicable Non-Firm Point-to-Point
Transmission Service Agreement and the formula rate described herein.
Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.026
A calculated charge will go into effect every October 1 based on
the formula above, updated financial and load projections, and the
true-up of previous projections. The annual charge will be posted on
the LAPT Open Access Same-Time Information System (OASIS) Web site.
Discounts
Three principal requirements apply to discounts for transmission
service as follows: (1) any offer of a discount made by LAPT must be
announced to all eligible customers solely by posting on the LAPT OASIS
Web site; (2) any customer-initiated requests for discounts, including
requests for use by LAP Marketing, must occur solely by posting on the
LAPT OASIS; and (3) once a discount is negotiated, details must be
immediately posted on the LAPT OASIS. For any discount agreed upon for
service on a path, from Point(s) of Receipt to Point(s) of Delivery,
LAPT must offer the same discounted transmission service charge for the
same time period to all eligible customers on all unconstrained
transmission paths that go to the same point(s) of delivery on the
transmission system.
Rate Schedule L-UU1
SCHEDULE 10 to OATT
(Supersedes Rate Schedule L-UU1 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
UNRESERVED USE PENALTIES
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
The Transmission Customer shall compensate the Loveland Area
Projects Transmission Service Provider (LAPT) each month for any
unreserved use of the transmission system (Unreserved Use) under the
applicable transmission service formula rates as described herein.
Unreserved Use occurs when an eligible customer uses transmission
service it has not reserved or a Transmission Customer uses
transmission service in excess of its reserved capacity. Unreserved Use
may also include a Transmission Customer's failure to curtail
transmission when requested, a Network Integration Transmission Service
(Network) Customer's scheduled delivery of off-system non-designated
purchases using transmission capacity reserved for designated Network
resources, and a Network Customer's use of Network service or secondary
service to facilitate a wholesale sale that does not serve a Network
load.
Penalty Rate
The penalty charge for a Transmission Customer who engages in
Unreserved Use is 200 percent of the Loveland Area Project's approved
formula rate for Firm Point-to-Point Transmission Service
[[Page 56646]]
assessed as follows: the Unreserved Use Penalty for a single hour of
Unreserved Use is based upon the charge for daily Firm Point-to-Point
Transmission Service. The Unreserved Use Penalty for more than one
assessment for a given duration (e.g., daily) increases to the next
longest duration (e.g., weekly). The Unreserved Use Penalty for
multiple instances of Unreserved Use (e.g., more than one hour) within
a day is based on the charge for daily Firm Point-to-Point Transmission
Service. The Unreserved Use Penalty for multiple instances of
Unreserved Use isolated to one calendar week is based on the charge for
weekly Firm Point-to-Point Transmission Service. The Unreserved Use
Penalty for multiple instances of Unreserved Use during more than one
week in a calendar month is based on the charge for monthly Firm Point-
to-Point Transmission Service.
A Transmission Customer who exceeds their reserved capacity at any
point of receipt or point of delivery, or an eligible customer who uses
transmission service at a point of receipt or point of delivery it has
not reserved, is required to pay for all ancillary services provided by
LAPT and associated with the Unreserved Use. The Transmission Customer
will pay for ancillary services based on the amount of transmission
service it used and did not reserve.
Rate Schedule L-AS1
SCHEDULE 1 to OATT
(Supersedes Rate Schedule SP-SD4 and Rate Schedule L-AS1 dated October
1, 2011, through September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Colorado River Storage Project
Loveland Area Projects
Western Area Colorado Missouri Balancing Authority
SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Colorado River Storage Project
Transmission (CRCM) and Loveland Area Projects Transmission (LAPT) as
Transmission Service Providers (TSPs) and to Western Area Colorado
Missouri Balancing Authority (WACM) as the Control Area operator.
Scheduling, System Control, and Dispatch Service is required to
schedule the movement of power through, out of, within, or into WACM.
This service can be provided only by the operator of the Control Area
in which the transmission facilities used for transmission service are
located.
The CRCM and LAPT TSPs must offer this service and the Federal
Transmission Customers must purchase this service from the CRCM and
LAPT TSPs. WACM provides this service on behalf of all TSPs within WACM
and those TSPs must purchase this service from WACM.
The charge will be applied to all schedules, except those for the
delivery of transmission losses to WACM. WACM will accept any number of
scheduling changes over the course of the day without any additional
charge. Unless other arrangements are made with WACM, the charge will
be allocated equally among all TSPs, both Federal and non-Federal,
listed on the schedule who are inside WACM. The Federal transmission
segments of the schedule are exempt from invoicing, as costs for these
segments are included in the CRCM and LAPT transmission service rates.
Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.027
[[Page 56647]]
The annual cost of scheduling personnel and related costs includes
annual costs associated with transmission scheduling (i.e., personnel,
facilities, equipment and software, as well as credits representing
fees for agent services).
The number of schedules per year is the yearly total of daily tags
which result in a schedule, excluding loss schedules.
A calculated charge will go into effect every October 1 based on
the formula above and updated financial and schedule data. The annual
charge will be posted on the CRCM and LAPT Open Access Same-Time
Information System Web sites.
Rate Schedule L-AS2
SCHEDULE 2 to OATT
(Supersedes Rate Schedule SP-RS4 and Rate Schedule L-AS2 dated October
1, 2011, through September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Colorado River Storage Project
Loveland Area Projects
Western Area Colorado Missouri Balancing Authority
REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION OR OTHER SOURCES
SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs first.
Applicable
This rate schedule applies to Colorado River Storage Project (CRCM)
and Loveland Area Projects (LAPT) as Transmission Service Providers
(TSPs) and to Western Area Colorado Missouri Balancing Authority (WACM)
as the Control Area operator. Reactive Supply and Voltage Control from
Generation or Other Sources Services (VAR Support Service) is required
to maintain transmission voltages on the TSPs transmission facilities
within acceptable limits, using generation facilities and non-
generation resources capable of providing this service to produce or
absorb reactive power. Thus, VAR Support Service must be provided for
each transaction on the transmission facilities within the Control
Area. The amount of VAR Support Service supplied to the transmission
transactions will be based on the VAR Support Service necessary to
maintain transmission voltages within limits generally accepted in the
region and consistently adhered to by WACM.
The CRCM and LAPT TSPs must offer this service for each transaction
and the Federal Transmission Customers must purchase this service from
the CRCM and LAPT TSPs, unless the Transmission Customer has generating
resources capable of providing VARs directly connected to a Federal
transmission facility owned and operated by CRCM and/or LAPT and has
executed a contract stipulating all the provisions of their self-
supply. If WACM provides VAR Support Service on behalf of any non-
Federal TSP, VAR Support Service will be assessed based on either the
TSP's reserved capacity or the tagged megawatt usage of the TSP's
Transmission Customers.
Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.028
[[Page 56648]]
The annual revenue requirement for VAR Support Service equals the
revenue requirement for Federal generation times the % of resource
capacity used for VAR Support Service (1 minus power factor) plus other
resources, e.g., energy and transmission costs for condensing Federal
generating units minus applicable revenue credits related to WACM
providing service.
The transmission transactions requiring VAR Support Service equals
transmission capacity use of the Federal transmission systems;
including point-to-point and network service on LAPT and CRCM
transmission systems.
A calculated charge will go into effect every October 1 based on
the formula above and updated financial and capacity data. The annual
charge will be posted on the CRCM and LAPT Open Access Same-Time
Information System Web sites.
Rate Schedule L-AS3
SCHEDULE 3 to OATT
(Supersedes Rate Schedule SP-FR4 and Rate Schedule L-AS3 dated October
1, 2011, through September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Colorado River Storage Project
Loveland Area Projects
Western Area Colorado Missouri Balancing Authority
REGULATION AND FREQUENCY RESPONSE SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Colorado River Storage Project (CRCM)
and Loveland Area Projects (LAPT) as Transmission Service Providers
(TSPs) and to Western Area Colorado Missouri Balancing Authority (WACM)
as the Control Area operator. Regulation and Frequency Response Service
(Regulation Service) is necessary to provide for the continuous
balancing of resources, generation, and interchange with load and for
maintaining scheduled interconnection frequency at sixty cycles per
second (60 Hz). Regulation Service is accomplished by committing on-
line generation whose output is raised or lowered, predominantly
through the use of automatic generation control (AGC) equipment as
necessary, to follow the moment-by-moment changes in load. All loads
inside the Control Area consume regulation; therefore, WACM, by
default, provides Regulation Service to all loads inside the Control
Area.
The CRCM and LAPT TSPs offer this service when transmission service
is used to serve load within WACM and the Federal Transmission
Customers must purchase this service from the CRCM and LAPT TSPs or
make alternative comparable arrangements with WACM to satisfy their
regulation obligations. For the Load Serving Entities (LSEs) who are
not taking transmission service from CRCM and LAPT, WACM will assess
Regulation Service charges for their load and for their variable
resources inside WACM.
The formula rate will be assessed to all applicable Federal
Transmission Customers and to all applicable non-Federal LSEs serving
load inside WACM.
Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.029
The total annual revenue requirement for Regulation Service
includes such costs as LAP and CRSP plant costs, purchases of
regulation products, purchases of power in support of the generating
units' ability to regulate, purchases of transmission for regulating
units trapped geographically inside another balancing authority,
purchases of transmission required to relocate energy due to
regulation/load following issues, and lost on-peak sales opportunities
resulting from the requirement to generate at night to permit units to
have ``down'' regulating capability.
The total load for Regulation Service equals load inside WACM
requiring Regulation Service, plus the installed nameplate capacity of
wind generators serving load inside WACM times the wind capacity
multiplier, plus the installed nameplate capacity of solar generators
serving load inside WACM times the solar capacity multiplier.
A calculated charge will go into effect every October 1 based on
the formula above and updated financial, load, and capacity multiplier
data. The annual charge and multipliers will be posted on the CRCM and
LAPT Open Access Same-Time Information System Web sites.
[[Page 56649]]
Types
There are two different applications of this Formula Rate:
1. Load-based Assessment: The charge is assessed on an entity's
auxiliary load (total metered load less applicable Federal
entitlements) and on the amount stated in any BA or transmission
service agreements. The charge is also applied to the installed
nameplate capacity of all variable energy resources, including wind and
solar generators, serving load inside WACM multiplied by the applicable
annually calculated Capacity Multiplier.
2. Self-provision Assessment: WACM allows entities with AGC to
self-provide for all or a portion of their loads. Entities with AGC are
known as Sub-Balancing Authorities (SBA) and must meet all of the
following criteria:
a. Have a well-defined boundary, with WACM-approved revenue-quality
metering, accurate as defined by the North American Electric
Reliability Corporation (NERC), to include Megawatt flow data
availability at 6-second or smaller intervals;
b. Have AGC responsive unit(s);
c. Demonstrate Regulation Service capability; and
d. Execute a contract with WACM in which entities agree to:
i. Provide all requested data to WACM.
ii. Meet SBA error criteria as described below.
Self-provision is measured by use of the entity's 1-minute average
Area Control Error (ACE) to determine the amount of self-provision. The
ACE is used to calculate the Regulation Service charges every hour as
follows:
a. If the entity's 1-minute average ACE for the hour is less than
or equal to 0.5 percent of its hourly average load, no Regulation
Service charge is assessed for that hour.
b. If the entity's 1-minute average ACE for the hour is greater
than or equal to 1.5 percent of its hourly average load, WACM assesses
Regulation Service charges to the entity's entire auxiliary load, using
the hourly Load-based Assessment applied to the entity's auxiliary 12-
cp load for that month.
c. If the entity's 1-minute average ACE for the hour is greater
than 0.5 percent of its hourly average load, but less than 1.5 percent
of its hourly average load, WACM assesses Regulation Service charges
based on linear interpolation of zero charge and full charge, using the
hourly Load-based Assessment applied to the entity's auxiliary 12-cp
load for that month.
d. WACM monitors the entity's Self-provision on a regular basis. If
WACM determines the entity has not been attempting to self-regulate,
WACM will, upon notification, employ the Load-based Assessment
described in No. 1, above.
Alternative Arrangements
Exporting Variable Resource Requirement: WACM does not provide
Regulation Service to variable resources inside the WACM Control Area
which are not used to serve load inside the WACM Control Area. An
entity that exports the output from a variable generator to another
Control Area will be required to dynamically meter or dynamically
schedule the resource out of the WACM Control Area to another Control
Area unless arrangements, satisfactory to WACM, are made for the entity
to acquire this service from a third party or self-supply (as outlined
below). A variable generator is one whose output is volatile and
variable due to factors beyond direct operational control and,
therefore, is not dispatchable.
Self- or Third-party supply: WACM may allow an entity to supply
some or all of its required regulation, or contract with a third party
to do so. This entity must have revenue quality metering at every load
and generation point, accurate as defined by NERC, to include MW flow
data availability at 6-second or smaller intervals. WACM will evaluate
the entity's metering, telecommunications and regulating resource, as
well as the required level of regulation, and determine whether the
entity qualifies to self-supply under this provision. If approved, the
entity is required to enter into a separate agreement with WACM which
will specify the terms of the self-supply application.
Customer Accommodation
For entities unwilling to take Regulation Service, self-provide as
described above, or acquire the service from a third party, WACM will
assist the entity in dynamically metering its loads/resources to
another Control Area. Until such time as meter configuration is
accomplished, the entity will be responsible for charges assessed under
the formula rate in effect.
Rate Schedule L-AS4
SCHEDULE 4 to OATT
(Supersedes Rate Schedule L-AS4 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
Western Area Colorado Missouri Balancing Authority
ENERGY IMBALANCE SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Loveland Area Projects (LAPT) as the
Transmission Service Provider (TSP) and to Western Area Colorado
Missouri Balancing Authority (WACM) as the Control Area operator. WACM
provides Energy Imbalance Service when a difference occurs between the
scheduled and the actual delivery of energy to a load located within
the Control Area over a single hour. Energy Imbalance Service is
calculated as resources minus obligations (adjusted for transmission
and transformer losses) for any combination of generation, scheduled
transfers, transactions, or actual load integrated over each hour.
The LAPT TSP must offer this service when the transmission service
is used to serve load within WACM and the Federal Transmission
Customers must purchase this service from the LAPT TSP or make
alternative comparable arrangements with WACM to satisfy their Energy
Imbalance obligations. By default, WACM, as the Control Area operator,
provides Energy
Imbalance Service to all entities within its Control Area
footprint. All entities who serve load inside WACM must enter into
separate agreements with WACM which will specify the terms of the
Energy Imbalance Service.
Formula Rate
Imbalances are calculated in three deviation bands as follows. The
term ``metered load'' is defined to be ``metered load adjusted for
losses.''
1. An imbalance of less than or equal to 1.5 percent of metered
load (or 4 MW, whichever is greater) for any hour is settled
financially at 100 percent of the
[[Page 56650]]
WACM weighted average hourly energy price.
2. An imbalance between 1.5 percent and 7.5 percent of metered load
(or 4 to 10 MW, whichever is greater) for any hour is settled
financially at 90 percent of the WACM weighted average hourly energy
price when net energy scheduled exceeds metered load or 110 percent of
the WACM weighted average hourly energy price when net energy scheduled
is less than metered load.
3. An imbalance greater than 7.5 percent of metered load (or 10 MW,
whichever is greater) for any hour is settled financially at 75 percent
of the WACM weighted average hourly energy price when net energy
scheduled exceeds metered load or 125 percent of the WACM weighted
average hourly energy price when net energy scheduled is less than
metered load.
Pricing:
All Energy Imbalance Service provided by WACM is accounted for
hourly and settled financially. The WACM aggregate imbalance determines
the energy pricing used in all deviation bands. A surplus dictates the
use of sale pricing; a deficit dictates the use of purchase pricing.
When no hourly data is available, the pricing defaults for sales and
purchase pricing are applied in the following order:
1. Weighted average sale or purchase pricing for the day (on- and
off-peak).
2. Weighted average sale or purchase pricing for the month (on- and
off-peak).
3. Weighted average sale or purchase pricing for the prior month
(on- and off-peak).
4. Weighted average sale or purchase pricing for the month prior to
the prior month (and continuing until sale or purchase pricing is
located) (on- and off-peak).
Expansion of the bandwidth may be allowed during the following
instances:
1. Response to the loss of a physical resource.
2. During transition of large base-load thermal resources (capacity
greater than 200 MW) between off-line and on-line following a reserve
sharing group response, when the unit generates less than the
predetermined minimum scheduling level.
During periods of Balancing Authority operating constraints, WACM
reserves the right to eliminate credits for over-deliveries. The cost
to WACM of any charge assessed by a reliability oversight agency due to
a violation of operating standards resulting from under-delivery or
over-delivery of energy may be passed through to Energy Imbalance
Service Customers.
Rate Schedule L-AS9
SCHEDULE 9 to OATT
(Supersedes Rate Schedule L-AS9 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects and
Western Area Colorado Missouri Balancing Authority
GENERATOR IMBALANCE SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Loveland Area Projects (LAPT) as the
Transmission Service Provider (TSP) and to Western Area Colorado
Missouri Balancing Authority (WACM) as the Control Area operator. WACM
provides Generator Imbalance Service when there is a difference between
actual generation and scheduled generation for each hour.
The LAPT TSP must offer this service when transmission service is
used to deliver energy to serve load within WACM and the Federal
Transmission Customers must purchase this service from the LAPT TSP or
make alternative comparable arrangements with WACM to satisfy their
Generator Imbalance obligations. By default, WACM, as the Control Area
operator, provides Generator Imbalance Service to all entities within
its Control Area footprint. All entities who have generation inside
WACM must enter into separate agreements with WACM which will specify
the terms of the Generator Imbalance Service.
This formula rate applies to all jointly-owned generators (unless
arrangements are made to allocate actual generation to each individual
owner), variable generators (unless arrangements are made to assess the
variable generator under Rate Schedule L-AS4), and any non-variable
generators without associated load inside the WACM Control Area.
Formula Rate
Imbalances are calculated in three deviation bands as follows:
1. An imbalance of less than or equal to 1.5 percent of metered
generation (or 4 MW, whichever is greater) for any hour is settled
financially at 100 percent of the WACM weighted average hourly energy
price.
2. An imbalance between 1.5 percent and 7.5 percent of metered
generation (or 4 to 10 MW, whichever is greater) for any hour is
settled financially at 90 percent of the WACM weighted average hourly
energy price when actual generation exceeds scheduled generation or 110
percent of the WACM weighted average hourly energy price when actual
generation is less than scheduled generation.
3. An imbalance greater than 7.5 percent of metered generation (or
10 MW, whichever is greater) for any hour is settled financially at 75
percent of the WACM weighted average hourly energy price when actual
generation exceeds scheduled generation or 125 percent of the WACM
weighted average hourly energy price when actual generation is less
than scheduled generation.
Variable generators are exempt from 25 percent penalties. All
imbalances greater than 1.5 percent of metered generation are subject
only to a 10 percent penalty.
Pricing:
All Generator Imbalance Service provided by WACM is accounted for
hourly and settled financially. The WACM aggregate imbalance determines
the energy pricing used in all deviation bands. A surplus dictates the
use of sale pricing; a deficit dictates the use of purchase pricing.
When no hourly data is available, the pricing defaults for sales and
purchase pricing are applied in the following order:
1. Weighted average sale or purchase pricing for the day (on- and
off-peak).
2. Weighted average sale or purchase pricing for the current month
(on- and off-peak).
3. Weighted average sale or purchase pricing for the prior month
(on- and off-peak).
4. Weighted average sale or purchase pricing for the month prior to
the prior month (and continuing until sale or purchase pricing is
located) (on- and off-peak).
Expansion of the bandwidth may be allowed during the following
instances:
1. Response to the loss of a physical resource.
2. During transition of large base-load thermal resources (capacity
greater than 200 MW) between off-line and on-line following a reserve
sharing group response, when the unit generates less than the
predetermined minimum scheduling level.
During periods of Balancing Authority operating constraints, WACM
reserves
[[Page 56651]]
the right to eliminate credits for over-deliveries. The cost to WACM of
any charge assessed by a reliability oversight agency due to a
violation of operating standards resulting from under-delivery or over-
delivery of energy may be passed through to Generator Imbalance Service
Customers.
Rate Schedule L-AS5
SCHEDULE 5 to OATT
(Supersedes Rate Schedule L-AS5 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects and
Western Area Colorado Missouri Balancing Authority
OPERATING RESERVE--SPINNING RESERVE SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Loveland Area Projects (LAPT) as the
Transmission Service Provider (TSP) and to Western Area Colorado
Missouri Balancing Authority (WACM) as the Control Area operator.
Spinning Reserve Service is needed to serve load immediately in the
event of a system contingency. Spinning Reserve Service may be provided
by generating units that are on-line and loaded at less than maximum
output.
The LAPT TSP must offer this service when transmission service is
used to serve load within WACM and the Federal Transmission Customers
must purchase this service from the LAPT TSP or make alternative
comparable arrangements with WACM to satisfy their Spinning Reserve
obligations. WACM may be willing to provide Spinning Reserves to other
entities, providing the entities enter into separate agreements with
WACM which will specify the terms of the Spinning Reserve Service.
Formula Rate
The LAPT TSP and WACM have no Spinning Reserves available for sale.
At a customer's request, the Rocky Mountain Region will purchase
Spinning Reserves and pass through the cost and any activation energy,
plus a fee for administration. The customer will be responsible for
providing the transmission to deliver the Spinning Reserves purchased.
Rate Schedule L-AS6
SCHEDULE 6 to OATT
(Supersedes Rate Schedule L-AS6 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects and
Western Area Colorado Missouri Balancing Authority
OPERATING RESERVE--SUPPLEMENTAL RESERVE SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to the Loveland Area Projects (LAPT) as
the Transmission Service Provider (TSP) and the Western Area Colorado
Missouri Balancing Authority (WACM) as the Control Area operator.
Supplemental Reserve Service is needed to serve load in the event of a
system contingency; however, it is not available immediately to serve
load but rather within a short period of time. Supplemental Reserve
Service may be provided by generating units that are on-line but
unloaded, by quick-start generation, or by interruptible load.
The LAPT TSP must offer this service when the transmission service
is used to serve load within WACM and the Federal Transmission
Customers must purchase this service from the LAPT TSP or make
alternative comparable arrangements with WACM to satisfy their
Supplemental Reserve obligations. WACM may be willing to provide
Supplemental Reserves to other entities, providing the entities enter
into separate agreements with WACM which will specify the terms of the
Supplemental Reserve Service.
Formula Rate
The LAPT TSP and WACM have no Supplemental Reserves available for
sale. At a customer's request, the Rocky Mountain Region will purchase
Supplemental Reserves and pass through the cost and any activation
energy, plus a fee for administration. The customer will be responsible
for providing the transmission to deliver the Supplemental Reserves
purchased.
Rate Schedule L-AS7
(Supersedes Rate Schedule L-AS7 dated October 1, 2011, through
September 30, 2016)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Western Area Colorado Missouri Balancing Authority
TRANSMISSION LOSSES SERVICE
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
The Western Area Colorado Missouri Balancing Authority (WACM)
provides Transmission Losses Service (Losses) to all Transmission
Service Providers (TSPs) who market transmission inside the WACM
Control Area (Customers). Transmission Losses are assessed for all
real-time and prescheduled transactions on transmission facilities
inside the WACM Control Area. For transactions (schedules) which
involve more than one TSP inside the WACM Control Area, the loss
obligation falls on the last TSP listed on the schedule. This prevents
double and triple assessment of the losses for schedules which involve
more than one TSP. The Customer is allowed the option of energy
repayment or financial repayment. Customers must declare annually their
preferred methodology of energy payback. Energy repayment may be either
concurrently or seven days later, to be delivered using the same
profile as the related transmission transaction. The Losses applicable
to the Colorado River Storage Project (CRCM) and Loveland Area Projects
(LAPT) TSPs will be passed directly to the CRCM and LAPT Transmission
Customers.
Formula Rate
The loss factor currently in effect is posted on WACM's Business
Practices which is posted on the CRCM and LAPT Open Access Same-Time
Information System Web sites.
When a transmission loss energy obligation is not provided (or is
under-
[[Page 56652]]
provided) by a Customer for a transmission transaction, the energy owed
for Transmission Losses Service is calculated and a charge is assessed
to the Customer based on the WACM weighted average hourly purchase
price.
Pricing for loss energy due 7 days later, and not received by WACM,
will be priced at the 7-day-later-price based on the WACM weighted
average hourly purchase price.
There will be no financial compensation or energy return to
Customers for over-delivery of Transmission Losses Service, as there
should be no condition beyond the control of the Customer that results
in overpayment.
Customers may settle financially or with energy. The pricing for
this service will be the WACM weighted average hourly purchase price.
When no hourly data is available, pricing defaults will be applied in
the following order:
1. Weighted average purchase pricing for the day (on- and off-
peak).
2. Weighted average purchase pricing for the current month (on- and
off-peak).
3. Weighted average purchase pricing for the prior month (on- and
off-peak).
4. Weighted average purchase pricing for the month prior to the
prior month (and continuing until purchase pricing is located (on- and
off-peak).
Rate Schedule L-M1
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
ROCKY MOUNTAIN REGION
Loveland Area Projects
SALES OF SURPLUS PRODUCTS
Effective
The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Loveland Area Projects (LAP)
Marketing and is applicable to the sale of the following LAP surplus
energy and capacity products: reserves, regulation, and frequency
response. If any of the above LAP surplus products are available, LAP
can make the product(s) available for sale, providing entities enter
into separate agreement(s) with LAP Marketing which will specify the
terms of sale(s).
Formula Rate
The charge for each product will be determined at the time of the
sale based on market rates, plus administrative costs. The customer
will be responsible for acquiring transmission service necessary to
deliver the product(s).
[FR Doc. 2016-19973 Filed 8-19-16; 8:45 am]
BILLING CODE 6450-01-P
