Desert Southwest Customer Service Region-Rate Order No. WAPA-127, 59335-59337 [05-20433]
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Federal Register / Vol. 70, No. 196 / Wednesday, October 12, 2005 / Notices
intervene again in a subdocket related to
a compliance filing if you have
previously intervened in the same
docket. Protests will be considered by
the Commission in determining the
appropriate action to be taken, but will
not serve to make protestants parties to
the proceeding. Anyone filing a motion
to intervene or protest must serve a copy
of that document on the Applicant. In
reference to filings initiating a new
proceeding, interventions or protests
submitted on or before the comment
deadline need not be served on persons
other and the Applicant.
The Commission encourages
electronic submission of protests and
interventions in lieu of paper, using the
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www.ferc.gov. To facilitate electronic
service, persons with Internet access
who will eFile a document and/or be
listed as a contact for an intervenor
must create and validate an
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eRegistration link. Select the eFiling
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intervention or protests.
Persons unable to file electronically
should submit an original and 14 copies
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888 First St. NE., Washington, DC
20426.
The filings in the above proceedings
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(202) 502–8659.
Magalie R. Salas,
Secretary.
[FR Doc. E5–5573 Filed 10–11–05; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Desert Southwest Customer Service
Region-Rate Order No. WAPA–127
Western Area Power
Administration, DOE.
ACTION: Notice of Proposed Network
Integration Transmission and Ancillary
Services Rates.
AGENCY:
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SUMMARY: The Western Area Power
Administration (Western) is proposing
revised rate methodologies for network
integration transmission service
(network service) for the Parker-Davis
Project (PDP), and the Pacific
Northwest-Pacific Southwest Intertie
Project (Intertie) and for ancillary
services from the PDP, Boulder Canyon
Project (BCP), and part of the Colorado
River Storage Project (CRSP) located in
the Desert Southwest Customer Service
Region’s (DSWR) Balancing Authority
and Transmission Operations Area
(BATO). Current rates, under Rate
Schedules DSW–SD1, DSW–RS1, DSW–
FR1, DSW–EI1, DSW–SPR1, DSW–
SUR1, PD–NTS1, and INT–NTS1,
extend through March 31, 2006. The
proposed rates will provide sufficient
revenue to pay all annual costs,
including interest expense and
repayment of required investment
within the allowable period. Western
will prepare a brochure that provides
detailed information on the rates. The
proposed rates, under Rate Schedules
DSW–SD2, DSW–RS2, DSW–FR2,
DSW–EI2, DSW–SPR2, DSW–SUR2,
PD–NTS2, INT–NTS2, WS–NTS1, are
scheduled to go into effect on April 1,
2006, and will remain in effect through
March 31, 2011. Publication of this
Federal Register notice begins the
formal process for the proposed rates.
DATES: The consultation and comment
period begins today and will end
January 10, 2006. Western will present
a detailed explanation of the proposed
rates at a public information forum to be
held on November 2, 2005, 1 p.m. MST,
Phoenix, AZ. Western will accept oral
and written comments at the public
comment forum. The public comment
forum will be held on November 29,
2005, 1 p.m. MST, Phoenix, AZ.
Western will accept written comments
any time during the consultation and
comment period.
ADDRESSES: Send written comments to
Mr. J. Tyler Carlson, Regional Manager,
Desert Southwest Customer Service
Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457, e-mail
carlson@wapa.gov. Western will post
information about the rate process on its
external Web site at https://
www.wapa.gov/dsw/dsw.htm. Western
will post official comments received via
letter and e-mail to its Web site after the
close of the comment period. Western
must receive written comments by the
end of the consultation and comment
period to ensure they are considered in
Western’s decision process. The
location for the Public Information and
Public Comment Forums is Desert
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59335
Southwest Regional Office, 615 South
43rd Avenue, Phoenix, AZ.
FOR FURTHER INFORMATION CONTACT: Mr.
Jack Murray, Rates Team Lead, Desert
Southwest Customer Service Region,
Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005–
6457; telephone (602) 605–2442, e-mail
jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The
proposed rates for DSWR network
service for the PDP and the Intertie and
ancillary services for the Western Area
Lower Colorado (WALC) BATO are
designed to recover an annual revenue
requirement that includes investment
repayment, interest, operation and
maintenance expense, and other
expenses. The ancillary services apply
to specified transmission service in the
WALC BATO including firm point-topoint, non-firm and network services on
the PDP, the Intertie, the Central
Arizona Project (CAP), and the portions
of the CRSP in WALC. All firm pointto-point and non-firm transmission
service and network service on the CAP
and CRSP are defined under existing
Rate Orders and are not a part of the
proposed rates.
The Deputy Secretary of Energy
approved Rate Schedules DSW–SD1,
DSW–RS1, DSW–FR1, DSW–EI1, DSW–
SPR1, DSW–SUR1, PD–NTS1, and INT–
NTS1 for the DSWR network service for
PDP and Intertie and ancillary services
for the WALC BATO on May 3, 1999
(Rate Order No. WAPA–84, 64 FR
25323, May 11, 1999), and the Federal
Energy Regulatory Commission
(Commission) confirmed and approved
the rate schedules on January 20, 2000,
under FERC Docket No EF99–5041–000,
(90 FERC 62,032). Approval for Rate
Schedules DSW–SD1, DSW–RS1, DSW–
FR1, DSW–EI1, DSW–SPR1, DSW–
SUR1, PD–NTS1, and INT–NTS1
covered 5 years beginning on April 1,
1999, and ending on March 31, 2004.
These rate schedules were extended by
a series of Rate Orders through March
31, 2006, with the most recent Rate
Order being Rate Order No. WAPA–121
(70 FR 15622, March 28, 2005). The rate
schedules were extended to
accommodate the DSWR Multi-System
Transmission Rate (MSTR) process. An
MSTR has not been approved. However,
Rate Schedule WS–NTS1 is structured
to allow multi-system network service
on the DSWR System if and when an
MSTR is approved.
Under Rate Schedules PD–NTS2,
INT–NTS2, and WS–NTS1, the
methodology for calculating the
customer’s monthly charge is the
product of the transmission customer’s
load-ratio share times one-twelfth of the
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Federal Register / Vol. 70, No. 196 / Wednesday, October 12, 2005 / Notices
annual transmission revenue
requirement. The customer’s load-ratio
share is equal to the network
transmission customer’s coincidental
peak (CP), which is the load coincident
with the appropriate Project’s monthly
transmission system peak averaged with
the previous 11 months (12 CP) divided
by the resultant value of the appropriate
Project’s average monthly transmission
system load at the hour of the system
peak in each month.
The monthly hour of the system peak
is determined as the hour that the sum
of the network customers’ metered loads
is the greatest. The system load at the
peak hour is determined by adding the
point-to-point firm transmission
reservations to the sum of the network
customer’s metered loads. The point-topoint firm transmission reservations can
include the Open Access Transmission
Tariff (OATT) firm point-to-point
reservations, the PDP Firm Electric
Service (FES) contract rates of delivery
(CROD), the pre-OATT Firm
Transmission Service (FTS) and the Salt
Lake City Area Integrated Project FES
with delivery points on the PDP.
The methodology to determine the
network service charges is the same for
the single system (PDP–NTS2 and INT–
NTS2) and the whole system (WS–
NTS1) services. One complication is
that under WS–NTS1, the determinants
(system load, peak hour, and revenue
requirement) apply to the combined
PDP, Intertie and CAP system (CRSP is
excluded from this calculation).
Under Rate Schedule DSW–SD2,
Scheduling, Dispatch, and System
Control Ancillary Service, the rate is
calculated as an annual cost of all
personnel, capital costs (such as the
dispatch center building), and other
expenses incurred in providing the
service for DSWR customers. These
costs are recovered through a rate
applied on a per tag basis. That rate is
determined in two major steps: First, the
yearly costs associated with capital
improvements are determined and
divided by the number of tags issued
during the year; second, the average
labor cost per tag is determined and
added to the capital cost per tag. This
rate design differs from the previous
methodology in two ways: (1) The
proposed rates are based on tags rather
than schedules, and (2) the proposed
methodology does not differentiate as to
new vs. existing tags or as to whether or
not a tag involves an intra-bus transfer.
Under Schedule DSW–RS2, Reactive
Supply and Voltage Control Service (Var
Support) from generation sources, the
rate is determined by dividing the
revenue requirement for the service by
the reservations requiring the service.
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The revenue requirement for the service
is one minus the power factor (1–PF)
times the combined generation revenue
requirement of the PDP, BCP and CRSP.
The previous methodology used the
factor (1–PF2) to determine the Var
Support revenue requirement for BCP
and PDP, and used an amount for the
CRSP Var Support revenue requirement
supplied by the CRSP Management
Center.
Under Schedule DSW–FR2,
Regulation and Frequency Response
Service (Regulation), the rate is
determined using the revenue
requirement for the service divided by
the load in the WALC requiring the
service. The revenue requirement for the
service is the product of the generation
capacity that is used for regulation and
the capacity rate of the Project, plus any
regulation purchases the transmission
provider must make. This total is
multiplied by a use factor, which takes
into consideration the customer load in
the WALC BATO. The denominator in
the equation and the load in the BATO
requiring the service includes a portion
of the CRSP load and the DSWR load.
Regulation is not available from
DSWR resources on a long-term basis.
However, if necessary, DSWR will
purchase regulation on the open market
for a charge that covers the cost of
procuring and supplying the service.
Regulation will be supplied from DSWR
resources only on a short-term basis, if
such resources are available. Under Rate
Schedule DSW–FR1, Western also
indicated that this service would only
be supplied under short-term sales, but
set the charge equal to the capacity rate
of the Project supplying the service
rather than basing the charge on a
formula as with the proposed rate
methodology.
Non-standard load refers to large,
volatile loads (such as those associated
with certain smelters and arc furnaces),
which can require a BATO to acquire
significant amounts of generation
capacity for regulation. Such nonstandard loads require separate metering
of their moment-to-moment load values
to accurately calculate their effects on
the system, and will not be covered
under the proposed regulation rate.
For this rate order, DSWR is defining
a non-standard load as either a single
plant or site: (1) With a regulation
capacity requirement of 5 megawatts
(MW) or greater on a recurring basis,
and (2) whose capacity requirement is
equal to 10 percent or greater of their
average load. Regulation for nonstandard loads, as determined by
Western, must be delineated in a service
agreement, which recognizes the
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additional burden required to supply
this service.
Rate Schedule DSW–EI2, Energy
Imbalance Service, proposes a different
bandwidth for on-peak and for off-peak,
because Western’s ability to supply this
service is different for these two
scenarios, especially during periods of
low water. The bandwidth for on-peak
is proposed to be plus or minus 1.5
percent of the customer’s load with a
minimum of 5 MW of either over- or
under-delivery. The off-peak bandwidth
is 1.5 percent to a negative 3 percent of
a customer’s load with a minimum of 2
MW of over-delivery and 5 MW of
under-delivery.
The settlement with the customer will
be different for excursions within the
bandwidth than for excursions outside
the bandwidth. However, in all cases it
is at Western’s discretion whether to
require a scheduled return of energy or
a financial settlement. If the customer’s
Imbalance Energy is within the
bandwidth for either on-peak or offpeak, the customer will be either
charged or credited 100 percent of a
weighted index price chosen by Western
or a scheduled return of an equal
amount of energy.
For energy outside the bandwidth
during the on-peak hours, the
methodology proposes 110 percent of a
weighted index price for underdeliveries and 90 percent of the
weighted index price for over-deliveries.
For energy outside the bandwidth
during the off-peak hours, the
methodology proposes 110 percent of a
weighted index price for underdeliveries. However, for over-deliveries
in the off-peak hours, the methodology
proposes the lesser of 60-percent of a
weighted index price, or a WALC
weighted sales price. In lieu of a
financial settlement for energy outside
the bandwidth, an amount of energy
equivalent to the financial settlement
will be scheduled.
The proposed rate methodology
differs from the previous methodology
in that previously DSWR used the FERC
pro-forma methodology to define the
service. Better metering and data sorting
capabilities and the drought, which
persists in the southwest, have shown
that Western is disadvantaged when
using the FERC pro-forma methodology.
Under the previous methodology, a 3percent bandwidth with a 2 MW
deviation was used, and underdeliveries were assessed 100 mills per
kilowatthour penalty and overdeliveries were credited at 50 percent of
market value.
Under Schedule DSW–SPR2,
Operating Reserves-Spinning Reserve
Service is not available from DSWR
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Federal Register / Vol. 70, No. 196 / Wednesday, October 12, 2005 / Notices
resources on a long-term firm basis. If a
customer cannot self-supply or purchase
this service from another provider,
Western may obtain the reserves on the
open market for a charge that covers the
cost of procuring the service. The
transmission customer will be
responsible for the transmission service
to get these reserves to their destination.
Under Schedule DSW–SUR2,
Operating Reserves-Supplemental
Reserve Service is not available from
DSWR resources on a long-term firm
basis. If a customer cannot self-supply
or purchase this service from another
provider, at the customer’s request,
Western may obtain the reserves on the
open market for a charge that covers the
cost of procuring the service. The
transmission customer will be
responsible for the transmission service
to get these reserves to their destination.
Spinning and Supplemental Reserve
Services were handled in the same way
in the previous rate methodology as in
this proposal.
Legal Authority
Since the proposed rates constitute a
major rate adjustment as defined by 10
CFR part 903, Western will hold both a
public information forum and a public
comment forum. After review of public
comments, and possible amendments or
adjustments, Western will recommend
the Deputy Secretary of Energy approve
the proposed rates on an interim basis.
Western is establishing network
service for the PDP and the Intertie and
ancillary services for the PDP, Intertie,
CAP, and the part of the CRSP located
in the WALC BATO under the
Department of Energy Organization Act
(42 U.S.C. 7152); the Reclamation Act of
1902 (ch. 1093, 32 Stat. 388), as
amended and supplemented by
subsequent laws, particularly section
9(c) of the Reclamation Project Act of
1939 (43 U.S.C. 485h(c)); and other acts
that specifically apply to the projects
involved.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to Western’s
Administrator; (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
Commission. Existing Department of
Energy (DOE) procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985.
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Availability of Information
All brochures, studies, comments,
letters, memorandums, or other
documents that Western initiates or uses
to develop the proposed rates are
available for inspection and copying at
the Desert Southwest Regional Office,
615 South 43rd Avenue, Phoenix,
Arizona. Many of these documents and
supporting information are also
available on DSWR’s external Web site
https://www.wapa.gov/dsw/dsw.htm.
Regulatory Procedure Requirements
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980
(5 U.S.C. 601, et seq.) requires Federal
agencies to perform a regulatory
flexibility analysis if a final rule is likely
to have a significant economic impact
on a substantial number of small
entities, and there is a legal requirement
to issue a general notice of proposed
rulemaking. This action does not require
a regulatory flexibility analysis since it
is a rulemaking of particular
applicability involving rates or services
applicable to public property.
Environmental Compliance
In compliance with the National
Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.);
Council on Environmental Quality
Regulations (40 CFR parts 1500–1508);
and DOE NEPA Regulations (10 CFR
part 1021), Western has determined this
action is categorically excluded from
preparing an environmental assessment
or an environmental impact statement.
Determination Under Executive Order
12866
Western 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.
Small Business Regulatory Enforcement
Fairness Act
Western has determined that this rule
is exempt from congressional
notification requirements under 5 U.S.C.
801 because the action is a rulemaking
of particular applicability relating to
rates or services and involves matters of
procedure.
Dated: September 30, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05–20433 Filed 10–11–05; 8:45 am]
BILLING CODE 6450–01–P
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59337
ENVIRONMENTAL PROTECTION
AGENCY
[Petition IV–2002–1; FRL–7982–7]
Clean Air Act Operating Permit
Program; Petition for Objection to
State Operating Permit for Oglethorpe
Power Company—Wansley Combined
Cycle Energy Facility; Roopville (Heard
County), GA
Environmental Protection
Agency (EPA).
ACTION: Notice of final order denying
petition to object to a state operating
permit in response to remand.
AGENCY:
SUMMARY: On September 15, 2005, the
Administrator issued an Order
Responding to Remand denying a
petition to object to a state operating
permit issued to Oglethorpe Power
Company (Oglethorpe)—Wansley
Combined Cycle Energy Facility (Block
8) located in Roopville, Heard County,
Georgia, pursuant to title V of the Clean
Air Act (the Act), 42 U.S.C. 7661–7661f.
On February 4, 2002, Sierra Club had
filed a petition seeking EPA’s objection
to the title V operating permit for Block
8 issued by the Georgia Environmental
Protection Division (EPD). The
Administrator denied the petition in an
Order dated November 15, 2002.
Pursuant to Section 502(b) of the Act,
Sierra Club appealed to the U.S. Court
of Appeals for the Eleventh Circuit (the
Court), arguing that Oglethorpe was not
entitled to a permit for Block 8 (in
accordance with Georgia’s Statewide
Compliance Rule) because it owns part
of another major stationary source that
has been cited for non-compliance with
the Act. On May 5, 2004, the Court
granted Sierra Club’s petition for
review, vacated the November 12, 2002,
Order, and remanded to EPA for further
explanation of the manner in which the
Georgia rule should be applied in cases
of partial ownership. After considering
the issues raised by the Court, the Order
Responding to Remand reaches the
same conclusion as EPA’s original
Order, but provides a more detailed
explanation.
Copies of the Order
Responding to Remand, the petition,
and all pertinent information relating
thereto are on file at the following
location: EPA Region 4, Air, Pesticides
and Toxics Management Division, 61
Forsyth Street SW., Atlanta, Georgia
30303–8960. The remanded final order
is also available electronically at the
following address: https://www.epa.gov/
region7/programs/artd/air/title5/
petitiondb/petitions/
ADDRESSES:
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[Federal Register Volume 70, Number 196 (Wednesday, October 12, 2005)]
[Notices]
[Pages 59335-59337]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-20433]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Desert Southwest Customer Service Region-Rate Order No. WAPA-127
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Network Integration Transmission and
Ancillary Services Rates.
-----------------------------------------------------------------------
SUMMARY: The Western Area Power Administration (Western) is proposing
revised rate methodologies for network integration transmission service
(network service) for the Parker-Davis Project (PDP), and the Pacific
Northwest-Pacific Southwest Intertie Project (Intertie) and for
ancillary services from the PDP, Boulder Canyon Project (BCP), and part
of the Colorado River Storage Project (CRSP) located in the Desert
Southwest Customer Service Region's (DSWR) Balancing Authority and
Transmission Operations Area (BATO). Current rates, under Rate
Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1, PD-
NTS1, and INT-NTS1, extend through March 31, 2006. The proposed rates
will provide sufficient revenue to pay all annual costs, including
interest expense and repayment of required investment within the
allowable period. Western will prepare a brochure that provides
detailed information on the rates. The proposed rates, under Rate
Schedules DSW-SD2, DSW-RS2, DSW-FR2, DSW-EI2, DSW-SPR2, DSW-SUR2, PD-
NTS2, INT-NTS2, WS-NTS1, are scheduled to go into effect on April 1,
2006, and will remain in effect through March 31, 2011. Publication of
this Federal Register notice begins the formal process for the proposed
rates.
DATES: The consultation and comment period begins today and will end
January 10, 2006. Western will present a detailed explanation of the
proposed rates at a public information forum to be held on November 2,
2005, 1 p.m. MST, Phoenix, AZ. Western will accept oral and written
comments at the public comment forum. The public comment forum will be
held on November 29, 2005, 1 p.m. MST, Phoenix, AZ. Western will accept
written comments any time during the consultation and comment period.
ADDRESSES: Send written comments to Mr. J. Tyler Carlson, Regional
Manager, Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, e-mail
carlson@wapa.gov. Western will post information about the rate process
on its external Web site at https://www.wapa.gov/dsw/dsw.htm. Western
will post official comments received via letter and e-mail to its Web
site after the close of the comment period. Western must receive
written comments by the end of the consultation and comment period to
ensure they are considered in Western's decision process. The location
for the Public Information and Public Comment Forums is Desert
Southwest Regional Office, 615 South 43rd Avenue, Phoenix, AZ.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Team Lead,
Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457; telephone (602)
605-2442, e-mail jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The proposed rates for DSWR network service
for the PDP and the Intertie and ancillary services for the Western
Area Lower Colorado (WALC) BATO are designed to recover an annual
revenue requirement that includes investment repayment, interest,
operation and maintenance expense, and other expenses. The ancillary
services apply to specified transmission service in the WALC BATO
including firm point-to-point, non-firm and network services on the
PDP, the Intertie, the Central Arizona Project (CAP), and the portions
of the CRSP in WALC. All firm point-to-point and non-firm transmission
service and network service on the CAP and CRSP are defined under
existing Rate Orders and are not a part of the proposed rates.
The Deputy Secretary of Energy approved Rate Schedules DSW-SD1,
DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1, PD-NTS1, and INT-NTS1
for the DSWR network service for PDP and Intertie and ancillary
services for the WALC BATO on May 3, 1999 (Rate Order No. WAPA-84, 64
FR 25323, May 11, 1999), and the Federal Energy Regulatory Commission
(Commission) confirmed and approved the rate schedules on January 20,
2000, under FERC Docket No EF99-5041-000, (90 FERC 62,032). Approval
for Rate Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-
SUR1, PD-NTS1, and INT-NTS1 covered 5 years beginning on April 1, 1999,
and ending on March 31, 2004. These rate schedules were extended by a
series of Rate Orders through March 31, 2006, with the most recent Rate
Order being Rate Order No. WAPA-121 (70 FR 15622, March 28, 2005). The
rate schedules were extended to accommodate the DSWR Multi-System
Transmission Rate (MSTR) process. An MSTR has not been approved.
However, Rate Schedule WS-NTS1 is structured to allow multi-system
network service on the DSWR System if and when an MSTR is approved.
Under Rate Schedules PD-NTS2, INT-NTS2, and WS-NTS1, the
methodology for calculating the customer's monthly charge is the
product of the transmission customer's load-ratio share times one-
twelfth of the
[[Page 59336]]
annual transmission revenue requirement. The customer's load-ratio
share is equal to the network transmission customer's coincidental peak
(CP), which is the load coincident with the appropriate Project's
monthly transmission system peak averaged with the previous 11 months
(12 CP) divided by the resultant value of the appropriate Project's
average monthly transmission system load at the hour of the system peak
in each month.
The monthly hour of the system peak is determined as the hour that
the sum of the network customers' metered loads is the greatest. The
system load at the peak hour is determined by adding the point-to-point
firm transmission reservations to the sum of the network customer's
metered loads. The point-to-point firm transmission reservations can
include the Open Access Transmission Tariff (OATT) firm point-to-point
reservations, the PDP Firm Electric Service (FES) contract rates of
delivery (CROD), the pre-OATT Firm Transmission Service (FTS) and the
Salt Lake City Area Integrated Project FES with delivery points on the
PDP.
The methodology to determine the network service charges is the
same for the single system (PDP-NTS2 and INT-NTS2) and the whole system
(WS-NTS1) services. One complication is that under WS-NTS1, the
determinants (system load, peak hour, and revenue requirement) apply to
the combined PDP, Intertie and CAP system (CRSP is excluded from this
calculation).
Under Rate Schedule DSW-SD2, Scheduling, Dispatch, and System
Control Ancillary Service, the rate is calculated as an annual cost of
all personnel, capital costs (such as the dispatch center building),
and other expenses incurred in providing the service for DSWR
customers. These costs are recovered through a rate applied on a per
tag basis. That rate is determined in two major steps: First, the
yearly costs associated with capital improvements are determined and
divided by the number of tags issued during the year; second, the
average labor cost per tag is determined and added to the capital cost
per tag. This rate design differs from the previous methodology in two
ways: (1) The proposed rates are based on tags rather than schedules,
and (2) the proposed methodology does not differentiate as to new vs.
existing tags or as to whether or not a tag involves an intra-bus
transfer.
Under Schedule DSW-RS2, Reactive Supply and Voltage Control Service
(Var Support) from generation sources, the rate is determined by
dividing the revenue requirement for the service by the reservations
requiring the service. The revenue requirement for the service is one
minus the power factor (1-PF) times the combined generation revenue
requirement of the PDP, BCP and CRSP. The previous methodology used the
factor (1-PF2) to determine the Var Support revenue
requirement for BCP and PDP, and used an amount for the CRSP Var
Support revenue requirement supplied by the CRSP Management Center.
Under Schedule DSW-FR2, Regulation and Frequency Response Service
(Regulation), the rate is determined using the revenue requirement for
the service divided by the load in the WALC requiring the service. The
revenue requirement for the service is the product of the generation
capacity that is used for regulation and the capacity rate of the
Project, plus any regulation purchases the transmission provider must
make. This total is multiplied by a use factor, which takes into
consideration the customer load in the WALC BATO. The denominator in
the equation and the load in the BATO requiring the service includes a
portion of the CRSP load and the DSWR load.
Regulation is not available from DSWR resources on a long-term
basis. However, if necessary, DSWR will purchase regulation on the open
market for a charge that covers the cost of procuring and supplying the
service. Regulation will be supplied from DSWR resources only on a
short-term basis, if such resources are available. Under Rate Schedule
DSW-FR1, Western also indicated that this service would only be
supplied under short-term sales, but set the charge equal to the
capacity rate of the Project supplying the service rather than basing
the charge on a formula as with the proposed rate methodology.
Non-standard load refers to large, volatile loads (such as those
associated with certain smelters and arc furnaces), which can require a
BATO to acquire significant amounts of generation capacity for
regulation. Such non-standard loads require separate metering of their
moment-to-moment load values to accurately calculate their effects on
the system, and will not be covered under the proposed regulation rate.
For this rate order, DSWR is defining a non-standard load as either
a single plant or site: (1) With a regulation capacity requirement of 5
megawatts (MW) or greater on a recurring basis, and (2) whose capacity
requirement is equal to 10 percent or greater of their average load.
Regulation for non-standard loads, as determined by Western, must be
delineated in a service agreement, which recognizes the additional
burden required to supply this service.
Rate Schedule DSW-EI2, Energy Imbalance Service, proposes a
different bandwidth for on-peak and for off-peak, because Western's
ability to supply this service is different for these two scenarios,
especially during periods of low water. The bandwidth for on-peak is
proposed to be plus or minus 1.5 percent of the customer's load with a
minimum of 5 MW of either over- or under-delivery. The off-peak
bandwidth is 1.5 percent to a negative 3 percent of a customer's load
with a minimum of 2 MW of over-delivery and 5 MW of under-delivery.
The settlement with the customer will be different for excursions
within the bandwidth than for excursions outside the bandwidth.
However, in all cases it is at Western's discretion whether to require
a scheduled return of energy or a financial settlement. If the
customer's Imbalance Energy is within the bandwidth for either on-peak
or off-peak, the customer will be either charged or credited 100
percent of a weighted index price chosen by Western or a scheduled
return of an equal amount of energy.
For energy outside the bandwidth during the on-peak hours, the
methodology proposes 110 percent of a weighted index price for under-
deliveries and 90 percent of the weighted index price for over-
deliveries. For energy outside the bandwidth during the off-peak hours,
the methodology proposes 110 percent of a weighted index price for
under-deliveries. However, for over-deliveries in the off-peak hours,
the methodology proposes the lesser of 60-percent of a weighted index
price, or a WALC weighted sales price. In lieu of a financial
settlement for energy outside the bandwidth, an amount of energy
equivalent to the financial settlement will be scheduled.
The proposed rate methodology differs from the previous methodology
in that previously DSWR used the FERC pro-forma methodology to define
the service. Better metering and data sorting capabilities and the
drought, which persists in the southwest, have shown that Western is
disadvantaged when using the FERC pro-forma methodology. Under the
previous methodology, a 3-percent bandwidth with a 2 MW deviation was
used, and under-deliveries were assessed 100 mills per kilowatthour
penalty and over-deliveries were credited at 50 percent of market
value.
Under Schedule DSW-SPR2, Operating Reserves-Spinning Reserve
Service is not available from DSWR
[[Page 59337]]
resources on a long-term firm basis. If a customer cannot self-supply
or purchase this service from another provider, Western may obtain the
reserves on the open market for a charge that covers the cost of
procuring the service. The transmission customer will be responsible
for the transmission service to get these reserves to their
destination.
Under Schedule DSW-SUR2, Operating Reserves-Supplemental Reserve
Service is not available from DSWR resources on a long-term firm basis.
If a customer cannot self-supply or purchase this service from another
provider, at the customer's request, Western may obtain the reserves on
the open market for a charge that covers the cost of procuring the
service. The transmission customer will be responsible for the
transmission service to get these reserves to their destination.
Spinning and Supplemental Reserve Services were handled in the same way
in the previous rate methodology as in this proposal.
Legal Authority
Since the proposed rates constitute a major rate adjustment as
defined by 10 CFR part 903, Western will hold both a public information
forum and a public comment forum. After review of public comments, and
possible amendments or adjustments, Western will recommend the Deputy
Secretary of Energy approve the proposed rates on an interim basis.
Western is establishing network service for the PDP and the
Intertie and ancillary services for the PDP, Intertie, CAP, and the
part of the CRSP located in the WALC BATO under the Department of
Energy Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902
(ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent
laws, particularly section 9(c) of the Reclamation Project Act of 1939
(43 U.S.C. 485h(c)); and other acts that specifically apply to the
projects involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator; (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 Commission. Existing Department of Energy
(DOE) procedures for public participation in power rate adjustments (10
CFR part 903) were published on September 18, 1985.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Western initiates or uses to develop the proposed rates
are available for inspection and copying at the Desert Southwest
Regional Office, 615 South 43rd Avenue, Phoenix, Arizona. Many of these
documents and supporting information are also available on DSWR's
external Web site https://www.wapa.gov/dsw/dsw.htm.
Regulatory Procedure Requirements
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.)
requires Federal agencies to perform a regulatory flexibility analysis
if a final rule is likely to have a significant economic impact on a
substantial number of small entities, and there is a legal requirement
to issue a general notice of proposed rulemaking. This action does not
require a regulatory flexibility analysis since it is a rulemaking of
particular applicability involving rates or services applicable to
public property.
Environmental Compliance
In compliance with the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.); Council on Environmental Quality
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR
part 1021), Western has determined this action is categorically
excluded from preparing an environmental assessment or an environmental
impact statement.
Determination Under Executive Order 12866
Western 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.
Small Business Regulatory Enforcement Fairness Act
Western has determined that this rule is exempt from congressional
notification requirements under 5 U.S.C. 801 because the action is a
rulemaking of particular applicability relating to rates or services
and involves matters of procedure.
Dated: September 30, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05-20433 Filed 10-11-05; 8:45 am]
BILLING CODE 6450-01-P
