Kerr-Philpott Project, SEPA-46, 50902-50917 [06-7192]

Download as PDF 50902 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices (CCAMPIS) grantees are better able than similar postsecondary institutions to provide child care services to lowincome students, and (2) if data are available to determine if these services improve these students’ persistence and graduation rates. Data collected from child care directors at grantee and nongrantee institutions will be used to monitor and improve the CCAMPIS program. Requests for copies of the information collection submission for OMB review may be accessed from http:// edicsweb.ed.gov, by selecting the ‘‘Browse Pending Collections’’ link and by clicking on link number 3142. When you access the information collection, click on ‘‘Download Attachments’’ to view. Written requests for information should be addressed to U.S. Department of Education, 400 Maryland Avenue, SW., Potomac Center, 9th Floor, Washington, DC 20202–4700. Requests may also be electronically mailed to ICDocketMgr@ed.gov or faxed to 202– 245–6623. Please specify the complete title of the information collection when making your request. Comments regarding burden and/or the collection activity requirements should be electronically mailed to ICDocketMgr@ed.gov. Individuals who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1– 800–877–8339. [FR Doc. E6–14246 Filed 8–25–06; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY Environmental Management SiteSpecific Advisory Board, Oak Ridge Reservation Department of Energy. ACTION: Notice of open meeting. mstockstill on PROD1PC61 with NOTICES AGENCY: SUMMARY: This notice announces a meeting of the Environmental Management Site-Specific Advisory Board (EM SSAB), Oak Ridge Reservation. The Federal Advisory Committee Act (Pub. L. No. 92–463, 86 Stat. 770) requires that public notice of this meeting be announced in the Federal Register. DATES: Wednesday, September 13, 2006, 6 p.m. ADDRESSES: DOE Information Center, 475 Oak Ridge Turnpike, Oak Ridge, Tennessee. FOR FURTHER INFORMATION CONTACT: Pat Halsey, Federal Coordinator, Department of Energy Oak Ridge Operations Office, P.O. Box 2001, EM– VerDate Aug<31>2005 16:57 Aug 25, 2006 Jkt 208001 90, Oak Ridge, TN 37831. Phone (865) 576–4025; Fax (865) 576–5333 or Email: halseypj@oro.doe.gov or check the Web site at http:// www.oakridge.doe.gov/em/ssab. SUPPLEMENTARY INFORMATION: Purpose of the Board: The purpose of the Board is to make recommendations to DOE in the areas of environmental restoration, waste management, and related activities. Tentative Agenda Proposed Activities for the U–233 Project at Oak Ridge National Laboratory, Building 3019. Public Participation: The meeting is open to the public. Written statements may be filed with the Board either before or after the meeting. Individuals who wish to make oral statements pertaining to the agenda item should contact Pat Halsey at the address or telephone number listed above. Requests must be received five days prior to the meeting and reasonable provision will be made to include the presentation in the agenda. The Deputy Designated Federal Officer is empowered to conduct the meeting in a fashion that will facilitate the orderly conduct of business. Individuals wishing to make public comment will be provided a maximum of five minutes to present their comments. Minutes: Minutes of this meeting will be available for public review and copying at the Department of Energy’s Information Center at 475 Oak Ridge Turnpike, Oak Ridge, TN between 8 a.m. and 5 p.m., Monday through Friday, or by writing to Pat Halsey, Department of Energy Oak Ridge Operations Office, P.O. Box 2001, EM– 90, Oak Ridge, TN 37831, or by calling her at (865) 576–4025. Issued at Washington, DC on August 21, 2006. Carol Matthews, Acting Advisory Committee Management Officer. [FR Doc. E6–14218 Filed 8–25–06; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF ENERGY Southeastern Power Administration Kerr-Philpott Project, SEPA–46 Southeastern Power Administration, DOE. ACTION: Notice of rate order. AGENCY: SUMMARY: The Deputy Secretary, Department of Energy, confirmed and approved, on an interim basis, Rate Schedules VA–1–A, VA–2–A, VA–3–A, PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 VA–4–A, CP&L–1–A, CP&L–2–A, CP&L–3–A, CP&L–4–A, AP–1–A, AP–2– A, AP–3–A, AP–4–A, NC–1–A, Replacement-2, and VANC–1. The rates were approved on an interim basis through September 30, 2011, and are subject to confirmation and approval by the Federal Energy Regulatory Commission on a final basis. DATES: Approval of rates on an interim basis is effective October 1, 2006. FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant Administrator, Finance & Marketing, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635– 4578, (706) 213–3800. SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by Order issued March 6, 2002, in Docket No. EF01–3041–000, confirmed and approved Wholesale Power Rate Schedules VA–1, VA–2, VA–3, VA–4, CP&L–1, CP&L–2, CP&L–3, CP&L–4, AP–1, AP–2, AP–3, AP–4, and NC–1 through September 30, 2006. This order replaces these rate schedules. Dated: August 15, 2006. Clay Sell, Deputy Secretary. In the Matter of: Southeastern Power Administration B Kerr-Philpott System Power Rates; Order Confirming and Approving Power Rates on an Interim Basis Pursuant to sections 302(a) and 301(b) of the Department of Energy Organization Act, Public Law 95–91, the functions of the Secretary of the Interior and the Federal Power Commission under section 5 of the Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern Power Administration (SEPA), were transferred to and vested in the Secretary of Energy. 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 Southeastern’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 Federal Energy Regulatory Commission (Commission). Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985. Background Power from the Kerr-Philpott Projects is presently sold under Wholesale E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices Power Rate Schedules VA–1, VA–2, VA–3, VA–4, CP&L–1, CP&L–2, CP&L– 3, CP&L–4, AP–1, AP–2, AP–3, AP–4, and NC–1. These rate schedules were approved by the FERC on March 6, 2002, for a period ending September 30, 2006 (98 FERC 62,156). An examination of SEPA’s current system power repayment study, prepared in July 2006, for the Kerr-Philpott System shows that revenues are not adequate to meet repayment criteria. A revised repayment study with a revenue increase of $1,423,000 in fiscal year 2007 and all future years over the current repayment study shows that all costs are repaid within their service life. Therefore, Southeastern is proposing to revise the existing rates to generate this additional revenue. The rate adjustment is an increase of about twelve percent (12%). mstockstill on PROD1PC61 with NOTICES Public Notice and Comment Notice of a proposed rate adjustment for the Kerr-Philpott System, based on a repayment study prepared in February of 2006, was published in the Federal Register March 10, 2006 (71 FR 12354). A Public Information and Comment Forum was held in Raleigh, North Carolina, on April 26, 2006. Transcripts from this forum are included as exhibit A–4. Written comments were accepted until June 8, 2006. Written comments were received from two sources and are attached to this exhibit. Comments have been condensed into three major categories. The three major categories are as follows: 1. Power Marketing Policy; 2. Inclusion of investments that are not currently used and useful; 3. Establishment of a true-up mechanism; 4. A question on Corps Operation & Maintenance (O&M) Expense; and 5. Questions directed at the Corps of Engineers (Corps). Category 1: Power Marketing Policy Comment 1: We don’t question the need for a rate increase, but suggest that it should be phased in as the project is funded and as we see benefits from the increased capacity and hopefully more energy. Response 1: The question pertains to marketing policy, rather than rates. Over the next five years, SEPA anticipates that at least one unit at the John H. Kerr Project will be out of service for rehabilitation. During that time, no additional capacity or energy will be available to allocate to preference customers. After the rehabilitation of the Kerr Project is complete, SEPA will evaluate the marketing arrangements and policies and may allocate the additional capacity. VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 Category 2: Inclusion of Investments that are Not Currently Used and Useful Comment 2: It appears to us that SEPA intends to include amounts in the new rate schedules for plant and investment that have not gone into commercial operation at this time. The inclusion of these amounts appears to violate the general legal principles on cost recovery, as well as DOE Regulations that govern the preparation of repayment studies and development of rate schedules. Response 2: The laws, regulations, methods, and standards for establishing rate schedules for Power Marketing Administrations (PMA) are different from the standards that apply to Investor Owned Utilities. See Generally: Central Electric Power Coop., Inc. v. Southeastern Power Administration (4th Cir. 2003). As the commenter has cited, ¶ 10(k.) of RA 6120.2 requires PMAs to include ‘‘investment costs for all authorized power system facilities for which Congress has appropriated funds for construction and which will be in service within the cost evaluation period * * *’’ ¶ 10(l.) provides ‘‘Future replacement costs will be included * * *’’ SEPA has traditionally included the cost of power investment that is estimated to be in service during the cost evaluation period (normally 5 years). SEPA is setting the rate at the beginning of the cost evaluation period; therefore it must be an estimate of when it will go into service. The budget process of the Corps is to request a new start for a major rehabilitation. The Corps may ask for several years of additional appropriations to complete the rehabilitation. When the first monies are appropriated the cost are included in the repayment study if the in service date is estimated to be within the cost evaluation period. It should be noted that ¶ 10(l.) does not include a requirement that the replacements included in the Repayment Study to have been appropriated funds by Congress. The paragraph is discussing costs to be included beyond the cost evaluation period. These costs have not been appropriated and are estimated assuming the need to be made in order to keep the projects in good operating order. It should also be noted that RA 6120.2 does not include a requirement that the investment be ‘‘used and useful’’ before it can be included in the repayment study. ¶ 10(k.) requires that investment costs that ‘‘* * * will be in service within the cost evaluation period will be PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 50903 included.’’ At this time, the customers point out that it is unclear that the ongoing rehabilitation of the John H. Kerr Project will be complete at the end of the cost evaluation period, which is the end of Fiscal Year 2011. Accordingly, SEPA has removed these projected investment costs from the Repayment Study used to develop the proposed rate schedules, and established a true-up mechanism that is discussed in SEPA’s response to comments 9 and 10. The Repayment Study includes projections of future replacement costs for which funds have not been appropriated by Congress, as required by ¶ 10(l.) of RA 6120.2. Comment 3: The United States Supreme Court essentially noted that electric utilities should recover investments when actually made and when the plant or investment is used and useful. It appears that those same considerations apply to Power Marketing Administrations as well. Response 3: See Response 2, above. Comment 4: On page 4 of RA 6120.2, subsection b(3), states ‘‘Fixed assets should be carried at the cost of acquisition or construction’’. There is no suggestion here that the fixed assets should be carried at the cost of a predicted acquisition or construction. Response 4: See Response 2, above. Comment 5: [¶ 10(k) of RA 6120.2] explains ‘‘The allocated power investment costs of all authorized power system facilities for which Congress has appropriated funds for construction and which will be in service within the cost evaluation period will be included.’’ So not only does Congress need to provide the funds, but the construction needs to be completed before the Department of Energy Regulations allow for the recovery of these amounts in the rates. Response 5: See Response 2, above. Comment 6: [¶ 10(l.) of RA 6120.2 states] ‘‘Future replacement costs will be included in repayment studies by adding the estimated capital cost of replacement to the unpaid Federal investment in the year each replacement is estimated to go into service.’’ The rate regulation tells the PMAs that they can include amounts in the rates that have been appropriated and then put into plant that has or will go into service during the time frame of the repayment schedule. Response 6: See Response 2, above. Comment 7: The SeFPC believes that SEPA must look to common electric utility practice to apply this term of art in the context of the proposed increase. Indeed, when considering the inclusion of investment that is not yet commercially operable, Federal Courts E:\FR\FM\28AUN1.SGM 28AUN1 50904 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices have determined that rates should include investment that is ‘‘used and useful.’’ See Oglethorpe Power Corporation v. FERC, 84 F.3d 1447, 1451 (D.C. Cir. 1996) citing Town of Norwood v. FERC, 80 F.3d 526, 531 (D.C. Cir. 1996). Response 7: See Response 2, above. Comment 8: If the Corps and SEPA are wrong about the anticipated funding and expected completion of the rehabilitation work, there is no apparent downside for each of these agencies. SEPA will continue to collect the funds for investment that is not commercially operable, and the Corps will simply fail to meet the rehabilitation schedule. There appears to be no financial accountability for the failure to perform. Response 8: See Response 2, above. mstockstill on PROD1PC61 with NOTICES 3. Establishment of a True-Up Mechanism Comment 9: The North Carolina EMC’s propose that an annual assessment of plant place in service be made, and only then, impose a rate increase that reflect the cost of this placed in-service project. The customers should not be in a position to pay in advance for service that may or may not be completed. Response 9: SEPA has agreed to include a true-up mechanism in the proposed rates. The true-up mechanism will work as follows: the Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Comment 10: To provide a more accurate reflection of the investment entering commercial operation and ensure that the rates reflect this reality, the Customers encourage SEPA to consider a rate structure that recognizes and accounts for rehabilitation work that goes into commercial operation for the preceding fiscal year. Response 10. See Response 9, above. 4. Question About Corps of Engineers O&M Comment 11: What are the specific components of Corps O&M that have increased to make up the $2.7 million annual increase to be recovered through rates from the hydropower function at the Kerr Project. Response: SEPA provides a breakdown of Corps O&M annually. The VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 projections that are incorporated into the repayment study used to develop the proposed rate schedules were provided to the O&M Committee of the SeFPC on June 8, 2005. SEPA and the Corps provided updates of O&M activities May 16, 2006. The specific components of Corps O&M that make up the $2.7 million annual increase were included in this breakdown. SEPA will continue to provide these reports to the SeFPC and any other party that requests them. 5. Questions Directed at the Corps of Engineers Comment 12: The SeFPC asked several questions that SEPA believes are appropriately addressed by the Corps of Engineers. The questions are listed below. The Corps response follows each question. SeFPC 1. Has the Corps requested funding for this project that has not been provided in the year requested? Corps 1: No. All funding requested in the President’s Budget has been provided in the year of the request. SeFPC 2. Does the Corps intend to take more than one unit out of operation at a time to perform rehabilitation? Corps 2: No. The contract allows for a 50-day overlap between unit outages. This overlap is to provide better efficiency of the contract work force. This will reduce the overall contract time between assembly and reassembly of the main hydropower units (Units 2– 7). Likewise there is a weight restriction and physical size limitation to one main rotor removal (215 tons) in the powerhouse on the generator floor erection bay. SeFPC 3. Are there any infrastructure repairs that must occur before the rehabilitation of the generators can take place? i.e. overhead bridge crane? Corps 3: The only outstanding work is the refurbishment of the existing draft tube gates. A new set of draft tube gates has been delivered to the project and now being used on Unit 1. This refurbishment should not delay any future contract work. The bridge crane was refurbished and upgraded already prior to the start of the major GE Hydro contract. SeFPC 4. Has the Corps ordered all of the equipment needed to make the needed replacements? If not, when will this take place? Corps 4: All Government furnished equipment required to support the rehabilitation contractor has been ordered. SeFPC 5. What contingencies have been put in place to address any delays from suppliers of equipment or PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 problems with equipment quality, installation, or performance? Corps 5: The last of the Government furnished equipment is to be delivered to the project site within 30 days, well in advance of the needs of the rehabilitation contractor. The rehabilitation contractor is required by contract to provide a contractor quality control system to manage the procurement, installation and testing of the remaining equipment. The performance of the contractor’s quality control system and the contract schedule are continuously evaluated by the Government. SeFPC 6. How many Corps Full Time Employees (‘‘FTEs’’) were anticipated to be allocated to the hydropower function at the Kerr project in 2000? Corps 6: There have been several reorganizations in Operations since FY 2000. None of the positions identified in Operations or Maintenance of the powerhouses were established or abolished based on the major rehabilitation of the powerhouse. The permanent FTE assigned to John H. Kerr in 2000 was approx. 21. The projected FTE this year and future years is 22 FTE for the Kerr project. The Hydropower District Function (Wilmington-1 FTE) was absorbed into the regular O&M staff at the powerhouse to make a total of 22 permanent FTE. There will be a projected increase in Philpott FTE by 1 for FY 07 and will remain constant into the future for a staff of 4. One additional J.H. Kerr FTE may be transferred to Philpott (net gain 0) in the next several years based on attrition or upcoming retirements at John H. Kerr. For the Kerr-Philpott system this will remain a total of 26 FTE. These totals are consistent with other hydropower stations of our size within SAD. In the case of the remote operated Philpott Powerhouse the staff is somewhat smaller than other remote powerhouse sites in SAD. The John H. Kerr staff also has the responsibility for the O&M of another station; the Island Creek Pumping Station to support the 22 FTE. The District approved Objective Organization, reviewed quarterly, that accounts for all USACE Wilmington District FTE for FY 06 through FY 10 allocates a combined total staff of 26 permanent FTE for the Hydropower Branch for both powerhouses and the pumping station. There are no plans to increase or decrease this staffing in the next 4 years. SeFPC 7. How many Corps FTEs are anticipated to be allocated to the hydropower function at the Kerr project in 2011? Corps 7: 22 FTE. E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices SeFPC 8. If there is an increase in Corps FTE allocated to the hydropower function between FY 2007 and FY 2011, please explain why the Corps expects FTEs allocated to hydropower to rise as the project is rehabilitated? Corps 8: There is no projected increase or decrease in FTE anticipated due to the rehabilitation of the powerhouse. Replacing the old generators with new still will require normal O&M and biennial inspections on all 7 units. The hydropower staff is allocated certain labor charge numbers to assist with the GE Hydro contract for review of P&S, submittals, meetings, plant security, and Lockout & Tag out of the equipment. Mostly this represents the managers and senior craft staff for about 5–10% of their time. SeFPC 9. Are any of these Corps FTEs allocated to hydropower working on a full time or part-time basis on rehabilitation work? Corps 9: No. Administration of the major rehabilitation contract is the responsibility of the Wilmington District Construction Branch. The Resident Engineer’s office of the Wilmington District Construction Branch did increase their staff for the administration of the major rehabilitation contract with 3.5 FTE. Those employees will be reassigned upon completion of the rehabilitation project. Discussion System Repayment An examination of SEPA’s revised system power repayment study, prepared in July 2006, for the KerrPhilpott System shows that with the proposed rates, all system power costs are paid within the 50-year repayment period required by existing law and DOE Procedure RA 6120.2. The Administrator of SEPA has certified that the rates are consistent with applicable law and that they are the lowest possible rates to customers consistent with sound business principles. mstockstill on PROD1PC61 with NOTICES Environmental Impact SEPA has reviewed the possible environmental impacts of the rate adjustment under consideration and has concluded that, because the adjusted rates would not significantly affect the quality of the human environment within the meaning of the National Environmental Policy Act of 1969, the proposed action is not a major Federal action for which preparation of an Environmental Impact Statement is required. VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 Availability of Information Information regarding these rates, including studies and other supporting materials, is available for public review in the offices of Southeastern Power Administration, 1166 Athens Tech Road, Elberton, Georgia 30635, and in the Power Marketing Liaison Office, James Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 20585. Order In view of the foregoing and pursuant to the authority delegated to me by the Secretary of Energy, I hereby confirm and approve on an interim basis, effective October 1, 2001, attached Wholesale Power Rate Schedules VA–1– A, VA–2–A, VA–3–A, VA–4–A, CP&L– 1–A, CP&L–2–A, CP&L–3–A, CP&L–4– A, AP–1–A, AP–2–A, AP–3–A, AP–4–A, NC–1–A, Replacement–2, and VANC–1. The Rate Schedules shall remain in effect on an interim basis through September 30, 2011, unless such period is extended or until the FERC confirms and approves them or substitutes Rate Schedules on a final basis. Dated: August 15, 2006. Clay Sell, Deputy Secretary. Wholesale Power Rate Schedule VA–1– A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia and North Carolina to whom power may be transmitted and scheduled pursuant to contracts between the Government, Virginia Electric and Power Company (hereinafter called the Company) , the Company’s Transmission Operator, currently PJM Interconnection LLC (hereinafter called PJM), and the Customer. This rate schedule is applicable to customers receiving power from the Government on an arrangement where the Company schedules the power and provides the Customer a credit on their bill for Government power. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 50905 between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company’s transmission and distribution system. Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and any ancillary services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company or PJM. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Transmission $2.43 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and Ancillary Services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may E:\FR\FM\28AUN1.SGM 28AUN1 50906 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices Billing Month charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Wholesale Power Rate Schedule VA–2– A Tandem Transmission Charge Availability $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia and North Carolina to whom power may be transmitted pursuant to contracts between the Government, Virginia Electric and Power Company (hereinafter called the Company), the Company’s Transmission Operator, currently PJM Interconnection LLC (hereinafter called PJM), and the Customer. The Customer has chosen to self-schedule and does not receive Government power under an arrangement where the Company schedules the power and provides a credit on the Customer’s bill for Government power. The Customer is responsible for providing a scheduling arrangement with the Government. The Government is responsible for arranging transmission with the Company and PJM. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. mstockstill on PROD1PC61 with NOTICES Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company or PJM under section 205 of the Federal Power Act or Southeastern Power Administration under section 206 of the Federal Power Act or otherwise. VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company’s transmission and distribution system. Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and any ancillary services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company or PJM. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Transmission $2.43 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company or PJM under section 205 of the Federal Power Act or Southeastern Power Administration under section 206 of the Federal Power Act or otherwise. Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. mstockstill on PROD1PC61 with NOTICES Wholesale Power Rate Schedule VA–2– A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia and North Carolina to whom power may be transmitted pursuant to contracts between the Government, Virginia Electric and Power Company (hereinafter called the Company), the Company’s Transmission Operator, currently PJM Interconnection LLC (hereinafter called PJM), and the Customer. The Customer has chosen to self-schedule and does not receive Government power under an VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 arrangement where the Company schedules the power and provides a credit on the Customer’s bill for Government power. The Customer is responsible for providing a scheduling arrangement with the Government. The Government is responsible for arranging transmission with the Company and PJM. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company’s transmission and distribution system. Monthly Rate 50907 Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and any ancillary services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company or PJM. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Tandem Transmission Charge Transmission The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. $2.43 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. Contract Demand E:\FR\FM\28AUN1.SGM 28AUN1 50908 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices Character of Service Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company or PJM under Section 205 of the Federal Power Act or Southeastern Power Administration under Section 206 of the Federal Power Act or otherwise. Billing Month The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule VA–4– A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia and North Carolina served through the transmission facilities of Virginia Electric and Power Company (hereinafter called the Company) and PJM Interconnection LLC (hereinafter called PJM). The Customer has chosen to self-schedule and does not receive Government power under an arrangement where the Company schedules the power and provides a credit on the Customer’s bill for Government power. The Customer is responsible for providing a scheduling arrangement with the Government and for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. mstockstill on PROD1PC61 with NOTICES Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects (hereinafter called the Projects) and sold under appropriate contracts between the Government and the Customer. VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 Tandem Transmission Charge The electric capacity and energy supplied hereunder will be delivered at the Projects. $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company or PJM. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company or PJM under Section 205 of the Federal Power Act or Southeastern Power Administration under Section 206 of the Federal Power Act or otherwise. Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices Wholesale Power Rate Schedule CP&L– 1–A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina to whom power may be transmitted and scheduled pursuant to contracts between the Government and Carolina Power & Light Company (hereinafter called the Company) and the Customer. This rate schedule is applicable to customers receiving power from the Government on an arrangement where the Company schedules the power and provides the Customer a credit on their bill for Government power. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company’s transmission and distribution system. mstockstill on PROD1PC61 with NOTICES Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Transmission $1.0475 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. The initial transmission charge will be the Customer’s ratable share of the transmission and distribution charges paid by the Government. The rate is subject to periodic adjustment and will be computed in accordance with the terms of the Government-Company contract. Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government on behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. 50909 each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission, in accordance with the Government-Company contract, is six (6) per cent. This loss factor will be governed by the terms of the Government-Company contract. Billing Month: The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule CP&L– 2–A Availability $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina to whom power may be transmitted pursuant to contracts between the Government and Carolina Power & Light Company (hereinafter called the Company) and the Customer. The Customer has chosen to selfschedule and does not receive Government power under an arrangement where the Company schedules the power and provides a credit on the Customer’s bill for Government power. The Customer is responsible for providing a scheduling arrangement with the Government. The Government is responsible for arranging transmission with the Company. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Transmission and Ancillary Services Applicability The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the terms of the Government-Company contract. This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts between the Government and the Customer. Tandem Transmission Charge Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 Character of Service The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company’s transmission and distribution system. Monthly Rate The monthly rate for capacity, energy, and generation services provided under E:\FR\FM\28AUN1.SGM 28AUN1 50910 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. mstockstill on PROD1PC61 with NOTICES Transmission $1.0475 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. The initial transmission charge will be the Customer’s ratable share of the transmission and distribution charges paid by the Government. The rate is subject to periodic adjustment and will be computed in accordance with the terms of the Government-Company contract. Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the terms of the Government-Company contract. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission, in accordance with the Government-Company contract, is six (6) per cent. This loss factor will be governed by the terms of the Government-Company contract. Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Wholesale Power Rate Schedule CP&L– 3–A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina to whom power may be scheduled pursuant to contracts between the Government and Carolina Power & Light Company (hereinafter called the Company) and the Customer. The Government is responsible for providing the scheduling. The Customer is responsible for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects (hereinafter called the Projects) and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the Projects. Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the terms of the Government-Company contract. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects (hereinafter called the Projects) and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the Projects. Wholesale Power Rate Schedule CP&L– 4–A Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina served through the transmission facilities of Carolina Power & Light Company (hereinafter called the Company). The Customer has chosen to self-schedule and does not receive Government power under an arrangement where the Company schedules the power and provides a credit on the Customer’s bill for Government power. The Customer is responsible for providing a scheduling arrangement with the Government and for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission, in accordance with the Government-Company contract, is six (6) per cent. This loss factor will be governed by the terms of the Government-Company contract. mstockstill on PROD1PC61 with NOTICES Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 50911 Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the terms of the Government-Company contract. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission, in accordance with the Government-Company contract, is six (6) per cent. This loss factor will be governed by the terms of the Government-Company contract. Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Wholesale Power Rate Schedule AP–1– A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia to whom power may be transmitted and scheduled pursuant to contracts between the Government, American Electric Power Service Corporation (hereinafter called the Company), the Company’s Transmission Operator, currently PJM Interconnection LLC (hereinafter called PJM), and the Customer. This rate schedule is applicable to customers receiving power from the Government on an arrangement where the Company schedules the power and provides the Customer a credit on their bill for Government power. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. E:\FR\FM\28AUN1.SGM 28AUN1 50912 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company’s transmission and distribution system. Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Transmission $2.43 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. mstockstill on PROD1PC61 with NOTICES Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 Regulatory Commission, pursuant to application by the Company or PJM under section 205 of the Federal Power Act or Southeastern Power Administration under section 206 of the Federal Power Act or otherwise. Billing Month The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule AP–2– A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia to whom power may be transmitted pursuant to contracts between the Government, American Electric Power Service Corporation (hereinafter called the Company), the Company’s Transmission Operator, currently PJM Interconnection LLC (hereinafter called PJM), and the Customer. The Customer has chosen to self-schedule and does not receive Government power under an arrangement where the Company schedules the power and provides a credit on the Customer’s bill for Government power. The Customer is responsible for providing a scheduling arrangement with the Government. The Government is responsible for arranging transmission with the Company. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company’s transmission and distribution system. Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Transmission $2.43 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. PJM), and the Customer. The Government is responsible for providing the scheduling. The Customer is responsible for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects (hereinafter called the Projects) and sold under appropriate contracts between the Government and the Customer. Character of Service Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by American Electric Power Service Corporation under section 205 of the Federal Power Act or Southeastern Power Administration under section 206 of the Federal Power Act or otherwise. The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. mstockstill on PROD1PC61 with NOTICES Wholesale Power Rate Schedule AP–3– A Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia to whom power may be scheduled pursuant to contracts between the Government, American Electric Power Service Corporation (hereinafter called the Company), PJM Interconnection LLC (hereinafter called 15:09 Aug 25, 2006 Jkt 208001 Applicability Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. VerDate Aug<31>2005 50913 Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 The electric capacity and energy supplied hereunder will be delivered at the Projects. Monthly Rate Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings E:\FR\FM\28AUN1.SGM 28AUN1 50914 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. mstockstill on PROD1PC61 with NOTICES Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. VerDate Aug<31>2005 15:09 Aug 25, 2006 Jkt 208001 These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company or PJM under section 205 of the Federal Power Act or Southeastern Power Administration under section 206 of the Federal Power Act or otherwise. Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Wholesale Power Rate Schedule AP–4– A Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia served through the facilities of American Electric Power Service Corporation (hereinafter called the Company) and PJM Interconnection LLC (hereinafter called PJM). The Customer has chosen to self-schedule and does not receive Government power under an arrangement where the Company schedules the power and provides a credit on the Customer’s bill for Government power. The Customer is responsible for providing a scheduling arrangement with the Government and for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects (hereinafter called the Projects) and sold under appropriate contracts between the Government and the Customer. Character of Service The electric capacity and energy supplied hereunder will be delivered at the Projects. Monthly Rate The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company’s rate. Ancillary Services 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Tandem Transmission Charge $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices Transmission and Ancillary Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving the Company’s or PJM’s Open Access Transmission Tariff. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company or PJM under section 205 of the Federal Power Act or Southeastern Power Administration under section 206 of the Federal Power Act or otherwise. Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Wholesale Power Rate Schedule NC–1– A mstockstill on PROD1PC61 with NOTICES Availability This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Virginia and North Carolina to whom power may be transmitted pursuant to a contract between the Government and Virginia Electric and Power Company (hereinafter called the Virginia Power) and PJM Interconnection LLC (hereinafter called PJM), scheduled pursuant to a contract between the Government and Carolina Power & Light Company (hereinafter called CP&L), and billed pursuant to contracts between the Government and the Customer. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer VerDate Aug<31>2005 16:57 Aug 25, 2006 Jkt 208001 50915 The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Virginia Power’s transmission and distribution system. upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) involving the Company’s or PJM’s Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Monthly Rate Tandem Transmission Charge The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: Capacity Charge: $2.35 Per kilowatt of total contract demand per month. Energy Charge: 9.38 Mills per kilowatt-hour. The Capacity Charge and the Energy Charge will be subject to annual adjustment on January 1 of each year based on transfers to plant in service for the preceding Fiscal Year that are not included in the proposed repayment study. The adjustment will be for each increase of $1,000,000 to plant in service an increase of $0.01 per kilowatt per month added to the capacity charge and 0.04 mills per kilowatt-hour added to the energy charge. Additional rates for Transmission and Ancillary Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Virginia Power and CP&L. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of Virginia Power’s or CP&L’s rate. $1.69 Per kilowatt of total contract demand per month, as an estimated cost as of February 2006. The tandem transmission charge will recover the cost of transmitting power from a project to the border of another transmitting system. This rate will be a formulary rate based on the cost to the Government for transmission of power from the Philpott project to the border of the Virginia Electric and Power Company System and the cost to the Government for transmission of power from the John H. Kerr Project to the border of the Carolina Power & Light System. to elect service under another rate schedule. Applicability This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the John H. Kerr and Philpott Projects and sold under appropriate contracts between the Government and the Customer. Character of Service Transmission $2.43 Per kilowatt of total contract demand per month as of February 2006, is presented for illustrative purposes. Transmission, System Control, Reactive, and Regulation Services The charges for Transmission and Ancillary Services shall be governed by and subject to refund based upon the determination in the proceeding involving Virginia Electric and Power Company’s or Carolina Power & Light Company’s Open Access Transmission Tariff. Contract Demand The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Ancillary Services Energy To Be Furnished by the Government 3.63 Mills per kilowatt-hour of energy as of February 2006, is presented for illustrative purposes. The initial charge for transmission and ancillary services will be the Customer’s ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Company (less applicable losses). The Customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company’s system. The PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 E:\FR\FM\28AUN1.SGM 28AUN1 50916 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices applicable energy loss factor for transmission is specified in the OATT. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company or PJM under section 205 of the Federal Power Act or Southeastern Power Administration under section 206 of the Federal Power Act or otherwise. Billing Month The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Replacement-2 contracts between the Government and the Customer. Availability Character of Service This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and Virginia to whom power is provided pursuant to contracts between the Government and the customer from the John H. Kerr and Philpott Projects (or Kerr-Philpott System). The energy supplied hereunder will be delivered at the delivery points provided for under appropriate contracts between the Government and the Customer. Applicability This rate schedule shall be applicable to the sale of wholesale energy purchased to meet contract minimum energy and sold under appropriate mstockstill on PROD1PC61 with NOTICES Customer 1150 ........................................ 1155 ........................................ 853 .......................................... 854 .......................................... 855 .......................................... 1144 ........................................ 1203 ........................................ 1204 ........................................ 895 .......................................... 1166 ........................................ 878 .......................................... 880 .......................................... 881 .......................................... 1205 ........................................ 882 .......................................... 1206 ........................................ 885 .......................................... 1208 ........................................ 892 .......................................... 889 .......................................... 1156 ........................................ 1145 ........................................ 1151 ........................................ 875 .......................................... 856 .......................................... 891 .......................................... 857 .......................................... 1152 ........................................ 869 .......................................... 1167 ........................................ 858 .......................................... 859 .......................................... 1157 ........................................ 1158 ........................................ 1159 ........................................ 860 .......................................... 861 .......................................... 862 .......................................... 1160 ........................................ 863 .......................................... 1161 ........................................ 1153 ........................................ 1162 ........................................ 864 .......................................... 1146 ........................................ 865 .......................................... 1154 ........................................ 870 .......................................... 871 .......................................... Albemarle EMC ...................................................................... B-A-R-C EC ............................................................................ Brunswick EMC ...................................................................... Carteret-Craven EMC ............................................................. Central EMC ........................................................................... Central Virginia EC ................................................................. City of Bedford ....................................................................... City of Danville ....................................................................... City of Elizabeth City .............................................................. City of Franklin ....................................................................... City of Kinston ........................................................................ City of Laurinburg ................................................................... City of Lumberton ................................................................... City of Martinsville .................................................................. City of New Bern .................................................................... City of Radford ....................................................................... City of Rocky Mount ............................................................... City of Salem .......................................................................... City of Washington ................................................................. City of Wilson ......................................................................... Community EC ....................................................................... Craig-Botetourt EC ................................................................. Edgecombe-Martin County EMC ........................................... Fayetteville Public Works Commission .................................. Four County EMC .................................................................. Greenville Utilities Commission .............................................. Halifax EMC ........................................................................... Halifax EMC ........................................................................... Harkers Island EMC ............................................................... Harrisonburg Electric Commission ......................................... Jones-Onslow EMC ................................................................ Lumbee River EMC ................................................................ Mecklenburg EMC .................................................................. Northern Neck EC .................................................................. Northern Virginia EC .............................................................. Pee Dee EMC ........................................................................ Piedmont EMC ....................................................................... Pitt & Greene EMC ................................................................ Prince George EC .................................................................. Randolph EMC ....................................................................... Rappahannock EC ................................................................. Roanoke EMC ........................................................................ Shenandoah Valley EMC ....................................................... South River EMC ................................................................... Southside EC ......................................................................... Tideland EMC ......................................................................... Tideland EMC ......................................................................... Town of Apex ......................................................................... Town of Ayden ....................................................................... 15:09 Aug 25, 2006 Jkt 208001 PO 00000 Frm 00035 Fmt 4703 The customer will pay its ratable share of Southeastern’s monthly cost for replacement energy. The ratable share will be the cost allocation factor for the customer listed in the table below times Southeastern’s monthly cost for replacement energy purchased for the Kerr-Philpott System, rounded to the nearest $0.01. Capacity allocation Contract No. 89–00–1501– VerDate Aug<31>2005 Monthly Charge Sfmt 4703 2,593 3,740 3,515 2,679 1,239 7,956 1,200 5,600 2,073 1,003 1,466 415 895 1,600 1,204 1,300 2,538 2,200 2,703 2,950 4,230 1,692 4,155 5,431 4,198 7,534 585 2,021 56 2,691 5,184 3,729 11,344 3,944 3,268 2,968 1,086 1,580 2,530 3,608 22,427 5,528 9,938 6,119 14,575 680 2,418 145 208 E:\FR\FM\28AUN1.SGM 28AUN1 Average energy 7,060,781 10,219,728 10,161,347 7,744,595 3,581,767 21,875,642 906,232 4,229,084 1,577,731 754,349 1,115,751 315,850 681,172 1,208,310 916,347 981,752 1,931,636 377,597 2,057,214 2,245,202 11,574,897 4,646,794 11,454,119 4,133,456 12,135,800 5,734,019 1,691,149 5,565,062 42,002 2,050,335 14,986,180 10,779,991 31,293,885 10,815,621 9,015,145 8,580,051 3,146,180 4,567,548 6,889,239 10,430,197 61,464,702 15,140,444 27,370,081 17,689,129 40,004,415 1,965,779 6,657,840 110,358 158,306 Cost allocation factor (percent) 1.587091 2.297145 2.284022 1.740796 0.805094 4.917110 0.203699 0.950595 0.354635 0.169559 0.250794 0.070995 0.153111 0.271599 0.205972 0.220674 0.434185 0.084875 0.462411 0.504667 2.601754 1.044486 2.574606 0.929100 2.727831 1.288867 0.380129 1.250890 0.009441 0.460865 3.368527 2.423079 7.034101 2.431087 2.026384 1.928586 0.707184 1.026673 1.548533 2.344453 13.815763 3.403202 6.152125 3.976084 8.992015 0.441859 1.496520 0.024806 0.035583 Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices Capacity allocation Average energy 50917 Cost allocation factor (percent) Contract No. 89–00–1501– Customer 893 .......................................... 872 .......................................... 1163 ........................................ 873 .......................................... 1164 ........................................ 894 .......................................... 1165 ........................................ 1169 ........................................ 874 .......................................... 876 .......................................... 896 .......................................... 897 .......................................... 898 .......................................... 877 .......................................... 879 .......................................... 868 .......................................... 883 .......................................... 884 .......................................... 1207 ........................................ 899 .......................................... 900 .......................................... 886 .......................................... 887 .......................................... 901 .......................................... 888 .......................................... 1168 ........................................ 1170 ........................................ 866 .......................................... 867 .......................................... Town of Belhaven .................................................................. Town of Benson ..................................................................... Town of Blackstone ................................................................ Town of Clayton ..................................................................... Town of Culpepper ................................................................. Town of Edenton .................................................................... Town of Elkton ....................................................................... Town of Enfield ...................................................................... Town of Farmville ................................................................... Town of Fremont .................................................................... Town of Hamilton ................................................................... Town of Hertford .................................................................... Town of Hobgood ................................................................... Town of Hookerton ................................................................. Town of La Grange ................................................................ Town of Louisburg .................................................................. Town of Pikeville .................................................................... Town of Red Springs ............................................................. Town of Richlands .................................................................. Town of Robersonville ............................................................ Town of Scotland Neck .......................................................... Town of Selma ....................................................................... Town of Smithfield .................................................................. Town of Tarboro ..................................................................... Town of Wake Forest ............................................................. Town of Wakefield .................................................................. Town of Windsor .................................................................... Tri-County EMC ...................................................................... Wake EMC ............................................................................. 182 120 389 161 391 775 171 259 237 60 40 203 46 30 93 857 40 117 500 232 304 183 378 2,145 149 106 331 3,096 2,164 138,518 91,330 292,564 122,535 297,911 589,841 128,608 194,792 180,378 45,665 30,443 154,500 35,010 22,833 70,781 2,561,391 30,443 89,047 1,661,426 176,572 231,370 139,279 287,691 1,632,529 113,402 79,721 248,943 8,950,081 6,255,806 0.031135 0.020529 0.065761 0.027543 0.066963 0.132582 0.028908 0.043784 0.040545 0.010264 0.006843 0.034728 0.007869 0.005132 0.015910 0.575738 0.006843 0.020016 0.373448 0.039689 0.052006 0.031307 0.064666 0.366953 0.025490 0.017919 0.055956 2.011759 1.406152 Total ................................. ................................................................................................. 196,500 444,888,221 100.000000 Energy To Be Furnished by the Government The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Facilitator (less any losses required by the Facilitator). The customer’s contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Facilitator’s system. Billing Month The billing month for power sold under this schedule shall lend at 1200 midnight on the last day of each calendar month. mstockstill on PROD1PC61 with NOTICES Availability This rate schedule shall be available to public bodies and cooperatives or their agents (any one of whom is hereinafter called the Customer) in North Carolina and Virginia to whom transmission is provided from the PJM Interconnection LLC (hereinafter called PJM) or Carolina Power & Light Company (hereinafter called CP&L). The Customer must have a contractual 15:09 Aug 25, 2006 Jkt 208001 ENVIRONMENTAL PROTECTION AGENCY Applicability Proposed CERCLA Section 122(h) Administrative Agreement for Recovery of Response Costs for the Peter Cooper Landfill Superfund Site, Village of Gowanda, Cattaraugus County, NY and the Peter Cooper (Markhams) Superfund Site, Town of Dayton, Cattaraugus County, NY This rate schedule shall be applicable to transmission services provided and sold under appropriate contracts between the Government and the Customer. Character of Service The services supplied hereunder will be delivered at the delivery points provided for under appropriate contracts between the Government and the Customer. Monthly Charge Wholesale Power Rate Schedule VANC–1 VerDate Aug<31>2005 arrangement with the Government to provide this service and currently pay the tandem transmission rate under another Kerr-Philpott rate schedule. The monthly charge will be the customer’s ratable share of the transmission and ancillary services incurred by the Government in behalf of the customer. Billing Month The billing month for power sold under this schedule shall lend at 1200 midnight on the last day of each calendar month. [FR Doc. 06–7192 Filed 8–25–06; 8:45 am] BILLING CODE 6450–01–P PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 [FRL–8213–6] Environmental Protection Agency. ACTION: Notice; request for public comment. AGENCY: SUMMARY: In accordance with Section 122(i) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (‘‘CERCLA’’), 42 U.S.C. 9622(i), notice is hereby given by the U.S. Environmental Protection Agency (‘‘EPA’’), Region II, of a proposed administrative agreement pursuant to Section 122(h) of CERCLA, 42 U.S.C. 9622(h), for recovery of response costs concerning the Peter Cooper Landfill Superfund Site located in the Village of Gowanda, Cattaraugus County, New York (‘‘Gowanda Site’’) and the Peter Cooper (Markhams) Superfund Site located in the Town of E:\FR\FM\28AUN1.SGM 28AUN1

Agencies

[Federal Register Volume 71, Number 166 (Monday, August 28, 2006)]
[Notices]
[Pages 50902-50917]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7192]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Kerr-Philpott Project, SEPA-46

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of rate order.

-----------------------------------------------------------------------

SUMMARY: The Deputy Secretary, Department of Energy, confirmed and 
approved, on an interim basis, Rate Schedules VA-1-A, VA-2-A, VA-3-A, 
VA-4-A, CP&L-1-A, CP&L-2-A, CP&L-3-A, CP&L-4-A, AP-1-A, AP-2-A, AP-3-A, 
AP-4-A, NC-1-A, Replacement-2, and VANC-1. The rates were approved on 
an interim basis through September 30, 2011, and are subject to 
confirmation and approval by the Federal Energy Regulatory Commission 
on a final basis.

DATES: Approval of rates on an interim basis is effective October 1, 
2006.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance & Marketing, Southeastern Power Administration, 
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-
4578, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by 
Order issued March 6, 2002, in Docket No. EF01-3041-000, confirmed and 
approved Wholesale Power Rate Schedules VA-1, VA-2, VA-3, VA-4, CP&L-1, 
CP&L-2, CP&L-3, CP&L-4, AP-1, AP-2, AP-3, AP-4, and NC-1 through 
September 30, 2006. This order replaces these rate schedules.

    Dated: August 15, 2006.
Clay Sell,
Deputy Secretary.

In the Matter of: Southeastern Power Administration B Kerr-Philpott 
System Power Rates; Order Confirming and Approving Power Rates on an 
Interim Basis

    Pursuant to sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern 
Power Administration (SEPA), were transferred to and vested in the 
Secretary of Energy. 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 Southeastern'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 Federal 
Energy Regulatory Commission (Commission). Existing DOE procedures for 
public participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985.

Background

    Power from the Kerr-Philpott Projects is presently sold under 
Wholesale

[[Page 50903]]

Power Rate Schedules VA-1, VA-2, VA-3, VA-4, CP&L-1, CP&L-2, CP&L-3, 
CP&L-4, AP-1, AP-2, AP-3, AP-4, and NC-1. These rate schedules were 
approved by the FERC on March 6, 2002, for a period ending September 
30, 2006 (98 FERC 62,156). An examination of SEPA's current system 
power repayment study, prepared in July 2006, for the Kerr-Philpott 
System shows that revenues are not adequate to meet repayment criteria. 
A revised repayment study with a revenue increase of $1,423,000 in 
fiscal year 2007 and all future years over the current repayment study 
shows that all costs are repaid within their service life. Therefore, 
Southeastern is proposing to revise the existing rates to generate this 
additional revenue. The rate adjustment is an increase of about twelve 
percent (12%).

Public Notice and Comment

    Notice of a proposed rate adjustment for the Kerr-Philpott System, 
based on a repayment study prepared in February of 2006, was published 
in the Federal Register March 10, 2006 (71 FR 12354). A Public 
Information and Comment Forum was held in Raleigh, North Carolina, on 
April 26, 2006. Transcripts from this forum are included as exhibit A-
4. Written comments were accepted until June 8, 2006. Written comments 
were received from two sources and are attached to this exhibit.
    Comments have been condensed into three major categories. The three 
major categories are as follows:
    1. Power Marketing Policy;
    2. Inclusion of investments that are not currently used and useful;
    3. Establishment of a true-up mechanism;
    4. A question on Corps Operation & Maintenance (O&M) Expense; and
    5. Questions directed at the Corps of Engineers (Corps).
Category 1: Power Marketing Policy
    Comment 1: We don't question the need for a rate increase, but 
suggest that it should be phased in as the project is funded and as we 
see benefits from the increased capacity and hopefully more energy.
    Response 1: The question pertains to marketing policy, rather than 
rates. Over the next five years, SEPA anticipates that at least one 
unit at the John H. Kerr Project will be out of service for 
rehabilitation. During that time, no additional capacity or energy will 
be available to allocate to preference customers. After the 
rehabilitation of the Kerr Project is complete, SEPA will evaluate the 
marketing arrangements and policies and may allocate the additional 
capacity.
Category 2: Inclusion of Investments that are Not Currently Used and 
Useful
    Comment 2: It appears to us that SEPA intends to include amounts in 
the new rate schedules for plant and investment that have not gone into 
commercial operation at this time. The inclusion of these amounts 
appears to violate the general legal principles on cost recovery, as 
well as DOE Regulations that govern the preparation of repayment 
studies and development of rate schedules.
    Response 2: The laws, regulations, methods, and standards for 
establishing rate schedules for Power Marketing Administrations (PMA) 
are different from the standards that apply to Investor Owned 
Utilities. See Generally: Central Electric Power Coop., Inc. v. 
Southeastern Power Administration (4th Cir. 2003). As the commenter has 
cited, ] 10(k.) of RA 6120.2 requires PMAs to include ``investment 
costs for all authorized power system facilities for which Congress has 
appropriated funds for construction and which will be in service within 
the cost evaluation period * * *'' ] 10(l.) provides ``Future 
replacement costs will be included * * *''
    SEPA has traditionally included the cost of power investment that 
is estimated to be in service during the cost evaluation period 
(normally 5 years). SEPA is setting the rate at the beginning of the 
cost evaluation period; therefore it must be an estimate of when it 
will go into service.
    The budget process of the Corps is to request a new start for a 
major rehabilitation. The Corps may ask for several years of additional 
appropriations to complete the rehabilitation. When the first monies 
are appropriated the cost are included in the repayment study if the in 
service date is estimated to be within the cost evaluation period.
    It should be noted that ] 10(l.) does not include a requirement 
that the replacements included in the Repayment Study to have been 
appropriated funds by Congress. The paragraph is discussing costs to be 
included beyond the cost evaluation period. These costs have not been 
appropriated and are estimated assuming the need to be made in order to 
keep the projects in good operating order. It should also be noted that 
RA 6120.2 does not include a requirement that the investment be ``used 
and useful'' before it can be included in the repayment study.
    ] 10(k.) requires that investment costs that ``* * * will be in 
service within the cost evaluation period will be included.'' At this 
time, the customers point out that it is unclear that the ongoing 
rehabilitation of the John H. Kerr Project will be complete at the end 
of the cost evaluation period, which is the end of Fiscal Year 2011. 
Accordingly, SEPA has removed these projected investment costs from the 
Repayment Study used to develop the proposed rate schedules, and 
established a true-up mechanism that is discussed in SEPA's response to 
comments 9 and 10.
    The Repayment Study includes projections of future replacement 
costs for which funds have not been appropriated by Congress, as 
required by ] 10(l.) of RA 6120.2.
    Comment 3: The United States Supreme Court essentially noted that 
electric utilities should recover investments when actually made and 
when the plant or investment is used and useful. It appears that those 
same considerations apply to Power Marketing Administrations as well.
    Response 3: See Response 2, above.
    Comment 4: On page 4 of RA 6120.2, subsection b(3), states ``Fixed 
assets should be carried at the cost of acquisition or construction''. 
There is no suggestion here that the fixed assets should be carried at 
the cost of a predicted acquisition or construction.
    Response 4: See Response 2, above.
    Comment 5: [] 10(k) of RA 6120.2] explains ``The allocated power 
investment costs of all authorized power system facilities for which 
Congress has appropriated funds for construction and which will be in 
service within the cost evaluation period will be included.'' So not 
only does Congress need to provide the funds, but the construction 
needs to be completed before the Department of Energy Regulations allow 
for the recovery of these amounts in the rates.
    Response 5: See Response 2, above.
    Comment 6: [] 10(l.) of RA 6120.2 states] ``Future replacement 
costs will be included in repayment studies by adding the estimated 
capital cost of replacement to the unpaid Federal investment in the 
year each replacement is estimated to go into service.'' The rate 
regulation tells the PMAs that they can include amounts in the rates 
that have been appropriated and then put into plant that has or will go 
into service during the time frame of the repayment schedule.
    Response 6: See Response 2, above.
    Comment 7: The SeFPC believes that SEPA must look to common 
electric utility practice to apply this term of art in the context of 
the proposed increase. Indeed, when considering the inclusion of 
investment that is not yet commercially operable, Federal Courts

[[Page 50904]]

have determined that rates should include investment that is ``used and 
useful.'' See Oglethorpe Power Corporation v. FERC, 84 F.3d 1447, 1451 
(D.C. Cir. 1996) citing Town of Norwood v. FERC, 80 F.3d 526, 531 (D.C. 
Cir. 1996).
    Response 7: See Response 2, above.
    Comment 8: If the Corps and SEPA are wrong about the anticipated 
funding and expected completion of the rehabilitation work, there is no 
apparent downside for each of these agencies. SEPA will continue to 
collect the funds for investment that is not commercially operable, and 
the Corps will simply fail to meet the rehabilitation schedule. There 
appears to be no financial accountability for the failure to perform.
    Response 8: See Response 2, above.
3. Establishment of a True-Up Mechanism
    Comment 9: The North Carolina EMC's propose that an annual 
assessment of plant place in service be made, and only then, impose a 
rate increase that reflect the cost of this placed in-service project. 
The customers should not be in a position to pay in advance for service 
that may or may not be completed.
    Response 9: SEPA has agreed to include a true-up mechanism in the 
proposed rates. The true-up mechanism will work as follows: the 
Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Comment 10: To provide a more accurate reflection of the investment 
entering commercial operation and ensure that the rates reflect this 
reality, the Customers encourage SEPA to consider a rate structure that 
recognizes and accounts for rehabilitation work that goes into 
commercial operation for the preceding fiscal year.
    Response 10. See Response 9, above.
4. Question About Corps of Engineers O&M
    Comment 11: What are the specific components of Corps O&M that have 
increased to make up the $2.7 million annual increase to be recovered 
through rates from the hydropower function at the Kerr Project.
    Response: SEPA provides a breakdown of Corps O&M annually. The 
projections that are incorporated into the repayment study used to 
develop the proposed rate schedules were provided to the O&M Committee 
of the SeFPC on June 8, 2005. SEPA and the Corps provided updates of 
O&M activities May 16, 2006. The specific components of Corps O&M that 
make up the $2.7 million annual increase were included in this 
breakdown. SEPA will continue to provide these reports to the SeFPC and 
any other party that requests them.
5. Questions Directed at the Corps of Engineers
    Comment 12: The SeFPC asked several questions that SEPA believes 
are appropriately addressed by the Corps of Engineers. The questions 
are listed below.
    The Corps response follows each question.
    SeFPC 1. Has the Corps requested funding for this project that has 
not been provided in the year requested?
    Corps 1: No. All funding requested in the President's Budget has 
been provided in the year of the request.
    SeFPC 2. Does the Corps intend to take more than one unit out of 
operation at a time to perform rehabilitation?
    Corps 2: No. The contract allows for a 50-day overlap between unit 
outages. This overlap is to provide better efficiency of the contract 
work force. This will reduce the overall contract time between assembly 
and reassembly of the main hydropower units (Units 2-7). Likewise there 
is a weight restriction and physical size limitation to one main rotor 
removal (215 tons) in the powerhouse on the generator floor erection 
bay.
    SeFPC 3. Are there any infrastructure repairs that must occur 
before the rehabilitation of the generators can take place? i.e. 
overhead bridge crane?
    Corps 3: The only outstanding work is the refurbishment of the 
existing draft tube gates. A new set of draft tube gates has been 
delivered to the project and now being used on Unit 1. This 
refurbishment should not delay any future contract work. The bridge 
crane was refurbished and upgraded already prior to the start of the 
major GE Hydro contract.
    SeFPC 4. Has the Corps ordered all of the equipment needed to make 
the needed replacements? If not, when will this take place?
    Corps 4: All Government furnished equipment required to support the 
rehabilitation contractor has been ordered.
    SeFPC 5. What contingencies have been put in place to address any 
delays from suppliers of equipment or problems with equipment quality, 
installation, or performance?
    Corps 5: The last of the Government furnished equipment is to be 
delivered to the project site within 30 days, well in advance of the 
needs of the rehabilitation contractor. The rehabilitation contractor 
is required by contract to provide a contractor quality control system 
to manage the procurement, installation and testing of the remaining 
equipment. The performance of the contractor's quality control system 
and the contract schedule are continuously evaluated by the Government.
    SeFPC 6. How many Corps Full Time Employees (``FTEs'') were 
anticipated to be allocated to the hydropower function at the Kerr 
project in 2000?
    Corps 6: There have been several reorganizations in Operations 
since FY 2000. None of the positions identified in Operations or 
Maintenance of the powerhouses were established or abolished based on 
the major rehabilitation of the powerhouse. The permanent FTE assigned 
to John H. Kerr in 2000 was approx. 21. The projected FTE this year and 
future years is 22 FTE for the Kerr project. The Hydropower District 
Function (Wilmington-1 FTE) was absorbed into the regular O&M staff at 
the powerhouse to make a total of 22 permanent FTE. There will be a 
projected increase in Philpott FTE by 1 for FY 07 and will remain 
constant into the future for a staff of 4. One additional J.H. Kerr FTE 
may be transferred to Philpott (net gain 0) in the next several years 
based on attrition or upcoming retirements at John H. Kerr. For the 
Kerr-Philpott system this will remain a total of 26 FTE. These totals 
are consistent with other hydropower stations of our size within SAD. 
In the case of the remote operated Philpott Powerhouse the staff is 
somewhat smaller than other remote powerhouse sites in SAD. The John H. 
Kerr staff also has the responsibility for the O&M of another station; 
the Island Creek Pumping Station to support the 22 FTE. The District 
approved Objective Organization, reviewed quarterly, that accounts for 
all USACE Wilmington District FTE for FY 06 through FY 10 allocates a 
combined total staff of 26 permanent FTE for the Hydropower Branch for 
both powerhouses and the pumping station. There are no plans to 
increase or decrease this staffing in the next 4 years.
    SeFPC 7. How many Corps FTEs are anticipated to be allocated to the 
hydropower function at the Kerr project in 2011?
    Corps 7: 22 FTE.

[[Page 50905]]

    SeFPC 8. If there is an increase in Corps FTE allocated to the 
hydropower function between FY 2007 and FY 2011, please explain why the 
Corps expects FTEs allocated to hydropower to rise as the project is 
rehabilitated?
    Corps 8: There is no projected increase or decrease in FTE 
anticipated due to the rehabilitation of the powerhouse. Replacing the 
old generators with new still will require normal O&M and biennial 
inspections on all 7 units. The hydropower staff is allocated certain 
labor charge numbers to assist with the GE Hydro contract for review of 
P&S, submittals, meetings, plant security, and Lockout & Tag out of the 
equipment. Mostly this represents the managers and senior craft staff 
for about 5-10% of their time.
    SeFPC 9. Are any of these Corps FTEs allocated to hydropower 
working on a full time or part-time basis on rehabilitation work?
    Corps 9: No. Administration of the major rehabilitation contract is 
the responsibility of the Wilmington District Construction Branch. The 
Resident Engineer's office of the Wilmington District Construction 
Branch did increase their staff for the administration of the major 
rehabilitation contract with 3.5 FTE. Those employees will be 
reassigned upon completion of the rehabilitation project.

Discussion

System Repayment

    An examination of SEPA's revised system power repayment study, 
prepared in July 2006, for the Kerr-Philpott System shows that with the 
proposed rates, all system power costs are paid within the 50-year 
repayment period required by existing law and DOE Procedure RA 6120.2. 
The Administrator of SEPA has certified that the rates are consistent 
with applicable law and that they are the lowest possible rates to 
customers consistent with sound business principles.

Environmental Impact

    SEPA has reviewed the possible environmental impacts of the rate 
adjustment under consideration and has concluded that, because the 
adjusted rates would not significantly affect the quality of the human 
environment within the meaning of the National Environmental Policy Act 
of 1969, the proposed action is not a major Federal action for which 
preparation of an Environmental Impact Statement is required.

Availability of Information

    Information regarding these rates, including studies and other 
supporting materials, is available for public review in the offices of 
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, 
Georgia 30635, and in the Power Marketing Liaison Office, James 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective October 1, 2001, attached Wholesale Power Rate 
Schedules VA-1-A, VA-2-A, VA-3-A, VA-4-A, CP&L-1-A, CP&L-2-A, CP&L-3-A, 
CP&L-4-A, AP-1-A, AP-2-A, AP-3-A, AP-4-A, NC-1-A, Replacement-2, and 
VANC-1. The Rate Schedules shall remain in effect on an interim basis 
through September 30, 2011, unless such period is extended or until the 
FERC confirms and approves them or substitutes Rate Schedules on a 
final basis.

    Dated: August 15, 2006.

Clay Sell,
Deputy Secretary.

Wholesale Power Rate Schedule VA-1-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted and 
scheduled pursuant to contracts between the Government, Virginia 
Electric and Power Company (hereinafter called the Company) , the 
Company's Transmission Operator, currently PJM Interconnection LLC 
(hereinafter called PJM), and the Customer. This rate schedule is 
applicable to customers receiving power from the Government on an 
arrangement where the Company schedules the power and provides the 
Customer a credit on their bill for Government power. Nothing in this 
rate schedule shall preclude modifications to the aforementioned 
contracts to allow an eligible customer to elect service under another 
rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and any ancillary services 
provided under this rate schedule shall be the rates charged 
Southeastern Power Administration by the Company or PJM. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $2.43 Per kilowatt of total contract demand per month as of 
February 2006, is presented for illustrative purposes.

Ancillary Services

    3.63 Mills per kilowatt-hour of energy as of February 2006, is 
presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the Federal Energy Regulatory Commission (FERC) involving the Company's 
or PJM's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may

[[Page 50906]]

charge the Customer for any and all separate transmission, ancillary 
services, and distribution charges paid by the Government in behalf of 
the Customer. These charges could be recovered through a capacity 
charge or an energy charge, as determined by the Government.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System. These 
charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's Open Access Transmission 
Tariff.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by the Company or 
PJM under section 205 of the Federal Power Act or Southeastern Power 
Administration under section 206 of the Federal Power Act or otherwise.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule VA-2-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted pursuant 
to contracts between the Government, Virginia Electric and Power 
Company (hereinafter called the Company), the Company's Transmission 
Operator, currently PJM Interconnection LLC (hereinafter called PJM), 
and the Customer. The Customer has chosen to self-schedule and does not 
receive Government power under an arrangement where the Company 
schedules the power and provides a credit on the Customer's bill for 
Government power. The Customer is responsible for providing a 
scheduling arrangement with the Government. The Government is 
responsible for arranging transmission with the Company and PJM. 
Nothing in this rate schedule shall preclude modifications to the 
aforementioned contracts to allow an eligible customer to elect service 
under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and any ancillary services 
provided under this rate schedule shall be the rates charged 
Southeastern Power Administration by the Company or PJM. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $2.43 Per kilowatt of total contract demand per month as of 
February 2006, is presented for illustrative purposes.

Ancillary Services

    3.63 Mills per kilowatt-hour of energy as of February 2006, is 
presented for illustrative purposes.
    The initial charge for transmission and ancillary services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the Federal Energy Regulatory Commission (FERC) involving the Company's 
or PJM's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the

[[Page 50907]]

border of the Carolina Power & Light System. These charges could be 
recovered through a capacity charge or an energy charge, as determined 
by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's Open Access Transmission 
Tariff.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by the Company or 
PJM under section 205 of the Federal Power Act or Southeastern Power 
Administration under section 206 of the Federal Power Act or otherwise.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule VA-2-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted pursuant 
to contracts between the Government, Virginia Electric and Power 
Company (hereinafter called the Company), the Company's Transmission 
Operator, currently PJM Interconnection LLC (hereinafter called PJM), 
and the Customer. The Customer has chosen to self-schedule and does not 
receive Government power under an arrangement where the Company 
schedules the power and provides a credit on the Customer's bill for 
Government power. The Customer is responsible for providing a 
scheduling arrangement with the Government. The Government is 
responsible for arranging transmission with the Company and PJM. 
Nothing in this rate schedule shall preclude modifications to the 
aforementioned contracts to allow an eligible customer to elect service 
under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and any ancillary services 
provided under this rate schedule shall be the rates charged 
Southeastern Power Administration by the Company or PJM. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $2.43 Per kilowatt of total contract demand per month as of 
February 2006, is presented for illustrative purposes.

Ancillary Services

    3.63 Mills per kilowatt-hour of energy as of February 2006, is 
presented for illustrative purposes.
    The initial charge for transmission and ancillary services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the Federal Energy Regulatory Commission (FERC) involving the Company's 
or PJM's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System. These 
charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's Open Access Transmission 
Tariff.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

[[Page 50908]]

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by the Company or 
PJM under Section 205 of the Federal Power Act or Southeastern Power 
Administration under Section 206 of the Federal Power Act or otherwise.

Billing Month

    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule VA-4-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina served through the transmission facilities 
of Virginia Electric and Power Company (hereinafter called the Company) 
and PJM Interconnection LLC (hereinafter called PJM). The Customer has 
chosen to self-schedule and does not receive Government power under an 
arrangement where the Company schedules the power and provides a credit 
on the Customer's bill for Government power. The Customer is 
responsible for providing a scheduling arrangement with the Government 
and for providing a transmission arrangement. Nothing in this rate 
schedule shall preclude modifications to the aforementioned contracts 
to allow an eligible customer to elect service under another rate 
schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company or PJM. Future adjustments to these rates 
will become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission of the Company's rate.

Ancillary Services

    3.63 Mills per kilowatt-hour of energy as of February 2006, is 
presented for illustrative purposes.
    The initial charge for transmission and ancillary services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the Federal Energy Regulatory Commission (FERC) involving the Company's 
or PJM's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System. These 
charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's Open Access Transmission 
Tariff.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by the Company or 
PJM under Section 205 of the Federal Power Act or Southeastern Power 
Administration under Section 206 of the Federal Power Act or otherwise.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

[[Page 50909]]

Wholesale Power Rate Schedule CP&L-1-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be transmitted and 
scheduled pursuant to contracts between the Government and Carolina 
Power & Light Company (hereinafter called the Company) and the 
Customer. This rate schedule is applicable to customers receiving power 
from the Government on an arrangement where the Company schedules the 
power and provides the Customer a credit on their bill for Government 
power. Nothing in this rate schedule shall preclude modifications to 
the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission of the Company's rate.

Transmission

    $1.0475 Per kilowatt of total contract demand per month as of 
February 2006, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The rate is subject to periodic adjustment and will be 
computed in accordance with the terms of the Government-Company 
contract.
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government on behalf of the Customer. These charges could 
be recovered through a capacity charge or an energy charge, as 
determined by the Government.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System. These 
charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the terms of the 
Government-Company contract.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule CP&L-2-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be transmitted 
pursuant to contracts between the Government and Carolina Power & Light 
Company (hereinafter called the Company) and the Customer. The Customer 
has chosen to self-schedule and does not receive Government power under 
an arrangement where the Company schedules the power and provides a 
credit on the Customer's bill for Government power. The Customer is 
responsible for providing a scheduling arrangement with the Government. 
The Government is responsible for arranging transmission with the 
Company. Nothing in this rate schedule shall preclude modifications to 
the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under

[[Page 50910]]

this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission of the Company's rate.

Transmission

    $1.0475 Per kilowatt of total contract demand per month as of 
February 2006, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The rate is subject to periodic adjustment and will be 
computed in accordance with the terms of the Government-Company 
contract.
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer. These charges could 
be recovered through a capacity charge or an energy charge, as 
determined by the Government.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System. These 
charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the terms of the 
Government-Company contract.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule CP&L-3-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be scheduled 
pursuant to contracts between the Government and Carolina Power & Light 
Company (hereinafter called the Company) and the Customer. The 
Government is responsible for providing the scheduling. The Customer is 
responsible for providing a transmission arrangement. Nothing in this 
rate schedule shall preclude modifications to the aforementioned 
contracts to allow an eligible customer to elect service under another 
rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission of the Company's rate.
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power

[[Page 50911]]

from the John H. Kerr Project to the border of the Carolina Power & 
Light System. These charges could be recovered through a capacity 
charge or an energy charge, as determined by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the terms of the 
Government-Company contract.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule CP&L-4-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina served through the transmission 
facilities of Carolina Power & Light Company (hereinafter called the 
Company). The Customer has chosen to self-schedule and does not receive 
Government power under an arrangement where the Company schedules the 
power and provides a credit on the Customer's bill for Government 
power. The Customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement. Nothing in this rate schedule shall preclude modifications 
to the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission of the Company's rate.

Tandem Transmission Charge

    $1.69 Per kilowatt of total contract demand per month, as an 
estimated cost as of February 2006.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System. These 
charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.

Transmission and Ancillary Services

    The charges for Transmission and Ancillary Services shall be 
governed by and subject to refund based upon the terms of the 
Government-Company contract.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.

Energy To Be Furnished by the Government

    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule AP-1-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia to whom power may be transmitted and scheduled pursuant to 
contracts between the Government, American Electric Power Service 
Corporation (hereinafter called the Company), the Company's 
Transmission Operator, currently PJM Interconnection LLC (hereinafter 
called PJM), and the Customer. This rate schedule is applicable to 
customers receiving power from the Government on an arrangement where 
the Company schedules the power and provides the Customer a credit on 
their bill for Government power. Nothing in this rate schedule shall 
preclude modifications to the aforementioned contracts to allow an 
eligible customer to elect service under another rate schedule.

[[Page 50912]]

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge:
    $2.35 Per kilowatt of total contract demand per month.
    Energy Charge:
    9.38 Mills per kilowatt-hour.
    The Capacity Charge and the Energy Charge will be subject to annual 
adjustment on January 1 of each year based on transfers to plant in 
service for the preceding Fiscal Year that are not included in the 
proposed repayment study. The adjustment will be for each increase of 
$1,000,000 to plant in service an increase of $0.01 per kilowatt per 
month added to the capacity charge and 0.04 mills per kilowatt-hour 
added to the energy charge.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission of the Company's rate.

Transmission

    $2.43 Per kilowatt of total contract demand per month as of 
February 2006, is presented for illustrative purposes.

Ancillary Services

    3.63 Mills per kilowatt-hour of energy as of February 2006, is 
presented for illustrative purposes.
    The initial charge for transmission and ancillary services will be 
the Customer's ratabl