Pacific Northwest-Pacific Southwest Intertie Project-Rate Order No. WAPA-130, 57563-57568 [E7-19914]
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Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Notices
DEPARTMENT OF ENERGY
Western Area Power Administration
Pacific Northwest-Pacific Southwest
Intertie Project—Rate Order No.
WAPA–130
Western Area Power
Administration, DOE.
ACTION: Notice of Order Concerning
Transmission Service Rates.
AGENCY:
SUMMARY: The Deputy Secretary of
Energy confirmed and approved Rate
Order No. WAPA–130 and Rate
Schedules INT–FT4 and INT–NFT3,
placing firm and nonfirm transmission
service rates for the Pacific NorthwestPacific Southwest Intertie Project
(Intertie) of the Western Area Power
Administration (Western) into effect on
an interim basis. The provisional rates
will be in effect until the Federal Energy
Regulatory Commission (FERC)
confirms, approves, and places them
into effect on a final basis, or until they
are replaced by other rates. The
provisional rates will provide sufficient
revenue to pay all annual costs,
including interest expense, and repay
required investment within the
allowable periods.
DATES: Rate Schedules INT–FT4 and
INT–NFT3 will be placed into effect on
an interim basis on the first day of the
first full billing period beginning on or
after October 1, 2007, and will be in
effect until FERC confirms, approves,
and places the rate schedules in effect
on a final basis ending September 30,
2012, or until the rate schedules are
superseded.
Mr.
J. Tyler Carlson, Regional Manager,
Desert Southwest Customer Service
Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457, (602) 605–
2453, e-mail carlson@wapa.gov or Mr.
Jack Murray, Rates Team Lead, Desert
Southwest Customer Service Region,
Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005–
6457, (602) 605–2442, e-mail
jmurray@wapa.gov.
FOR FURTHER INFORMATION CONTACT:
The
existing Rate Schedules consist of
separate firm transmission service rates
for the 230/345–kilovolt (kV) and 500–
kV transmission systems, and a nonfirm
transmission service rate for the 230/
345/500–kV transmission system. Rate
Schedules INT–FT2 and INT–NFT2,
Rate Order No. WAPA–71, were
approved for a 56-month period
beginning February 1, 1996, and ending
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SUPPLEMENTARY INFORMATION:
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September 30, 2000.1 Rate Schedule
INT–FT3, Rate Order No. WAPA–76,
superseded Rate Schedule INT–FT2 as it
related to firm transmission service on
the 230/345–kV transmission system
and was approved for a 5-year period
beginning January 1, 1999, and ending
December 31, 2003.2 Rate Order No.
WAPA–91 extended Rate Schedules
INT–FT2 and INT–NFT2 beginning
October 1, 2000, through December 31,
2003,3 as they related to firm
transmission service on the 500–kV
transmission system and nonfirm
transmission service on the 230/345/
500–kV transmission system. Rate Order
No. WAPA–108 extended Rate
Schedules INT–FT2, INT–FT3, and
INT–NFT2 beginning January 1, 2004,
through December 31, 2006.4 Western
initiated a public process to adjust all
three transmission service rates via a
notice published in the Federal Register
on July 12, 2006, (71 FR 39310). Rate
Order No. WAPA–133 extended the
public process for the rate adjustment
that was initiated on July 12, 2006, and
extended the existing rate schedules
again beginning January 1, 2007,
through December 31, 2007.5
The existing firm transmission service
Rate Schedules are being superseded by
Rate Schedule INT–FT4. Under Rate
Schedule INT–FT2, the rate for firm
point-to-point 500–kV transmission
service is $17.23 per kilowattyear
(kWyear). Under Rate Schedule INT–
FT3, the rate for firm point-to-point 230/
345–kV transmission service is $12 per
kWyear. The provisional rate for firm
point-to-point 230/345/500–kV
transmission service under Rate
Schedule INT–FT4 is $15.24 per
kWyear. The provisional rate for firm
transmission service in Rate Schedule
INT–FT4 results in a decrease of about
1 WAPA–71 was approved by the Deputy
Secretary of Energy on January 31, 1996 (61 FR
4650), and confirmed and approved by FERC on a
final basis on July 24, 1996, in Docket No. EF96–
5191–000 (76 FERC ¶ 62061).
2 WAPA–76 was approved by the Deputy
Secretary of Energy on January 28, 1999 (64 FR
6344), and confirmed and approved by FERC on a
final basis on June 22, 1999, in Docket No. EF99–
5191–000 (87 FERC ¶ 61346).
3 WAPA–91 was approved by the Deputy
Secretary of Energy on August 15, 2000 (65 FR
52423). FERC accepted this extension pursuant to
a letter order from Michael A. Coleman, Director,
Division of Tariffs and Rates-West dated October
19, 2000, in Docket No. EF00–5191–000.
4 WAPA–108 was approved by the Deputy
Secretary of Energy on October 27, 2003 (68 FR
63083), and approved by FERC on a final basis on
March 25, 2004, in Docket No. EF04–5191–000 (106
FERC ¶ 62227).
5 WAPA–133 was approved by the Deputy
Secretary of Energy on December 21, 2006 (71 FR
78189) and filed with FERC for informational
purposes only, and docketed by FERC in Docket No.
EF07–5191–000 on December 21, 2006.
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57563
11.5 percent when compared with the
existing rate under Rate Schedule INT–
FT2, and an increase of 27 percent when
compared with the existing rate under
Rate Schedule INT–FT3. The existing
nonfirm transmission service Rate
Schedule is being superseded by Rate
Schedule INT–NFT3. Under Rate
Schedule INT–NFT2, the rate for
nonfirm point-to-point 230/345/500–kV
transmission service is 2.00 mills per
kilowatthour (kWh). The provisional
rate for nonfirm point-to-point 230/345/
500–kV transmission service under Rate
Schedule INT–NFT3 is 1.74 mills per
kWh. The provisional rate for nonfirm
transmission service in Rate Schedule
INT–NFT3 results in a decrease of 13
percent when compared with the
existing rate under Rate Schedule INT–
NFT2.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to Western’s
Administrator, (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy, and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand,
or to disapprove such rates to FERC.
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985.
Under Delegation Order Nos. 00–
037.00 and 00–001.00C, and in
compliance with 10 CFR part 903, and
18 CFR part 300, I hereby confirm,
approve, and place Rate Order No.
WAPA–130 and the proposed rates for
Intertie transmission service into effect
on an interim basis. The new Rate
Schedules INT–FT4 and INT–NFT3 will
be submitted promptly to FERC for
confirmation and approval on a final
basis.
Dated: September 28, 2007.
Clay Sell,
Deputy Secretary of Energy.
Department of Energy, Deputy
Secretary
[Rate Order No. WAPA–130]
In the Matter of: Western Area Power
Administration Rate Adjustment for the
Pacific Northwest-Pacific Southwest
Intertie Project; Order Confirming,
Approving, and Placing the Pacific
Northwest-Pacific Southwest Intertie
Project Transmission Service Rates Into
Effect on an Interim Basis
These rates were established in
accordance with section 302 of the
Department of Energy (DOE)
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Organization Act (42 U.S.C. 7152). This
Act transferred to and vested in the
Secretary of Energy, the power
marketing functions of the Secretary of
the Department of the Interior and the
Bureau of Reclamation under the
Reclamation Act of 1902 (ch. 1093, 32
Stat. 388), as amended and
supplemented by subsequent laws,
particularly section 9(c) of the
Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other Acts that
specifically apply to the project
involved.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to Western’s
Administrator, (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy, and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand,
or to disapprove such rates to FERC.
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985.
Acronyms and Definitions
As used in this Rate Order, the
following acronyms and definitions
apply:
Administrator: The Administrator of the
Western Area Power Administration.
Capacity: The electric capability of a
generator, transformer, transmission
circuit, or other equipment. It is
expressed in kilowatts.
CROD: Contract Rate of Delivery. The
maximum amount of capacity made
available to a customer for a period
specified under a contract or service
agreement.
Customer: An entity with a contract or
service agreement that is receiving
service from Western’s Desert
Southwest Region.
Deficits: Deferred or unrecovered annual
expenses.
DOE: United States Department of
Energy.
DOE Order RA 6120.2: An order
outlining power marketing
administration financial reporting and
ratemaking procedures.
Desert Southwest Region: The Desert
Southwest Customer Service Region
of Western.
Energy: Measured in terms of the work
it is capable of doing over a period of
time. It is expressed in kilowatthours.
FERC: Federal Energy Regulatory
Commission
Firm: type of product and/or service that
is available at the time requested by
the customer.
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FRN: Federal Register notice.
FY: Fiscal year; October 1 to September
30.
Intertie: Pacific Northwest-Pacific
Southwest Intertie Project.
kV: Kilovolt—the electrical unit of
measure of electric potential that
equals 1,000 volts.
kW: Kilowatt—the electrical unit of
capacity that equals 1,000 watts.
kWh: Kilowatthour—the electrical unit
of energy that equals 1,000 watts in 1
hour.
kWmonth: Kilowattmonth—the
electrical unit of the monthly amount
of capacity.
kWyear: Kilowattyear—the electrical
unit of the yearly amount of capacity.
mill: A monetary denomination of the
United States that equals one tenth of
a cent or one thousandth of a dollar.
mills/kWh: Mills per kilowatthour—a
unit of charge.
NEPA: National Environmental Policy
Act of 1969 (42 U.S.C. 4321, et seq.).
Nonfirm: A type of product and/or
service not always available at the
time requested by the customer.
O&M: Operation and Maintenance.
Proposed Rate: A rate that has been
recommended by Western to the
Deputy Secretary of Energy for
approval.
Provisional Rate: A rate that has been
confirmed, approved, and placed into
effect on an interim basis by the
Deputy Secretary of Energy.
PRS: Power Repayment Study.
Rate Brochure: Documents prepared for
public distribution explaining the
rationale and background for the rate
proposal contained in this rate order
dated July 2006 and February 2007.
Ratesetting PRS: The PRS used for the
rate adjustment proposal.
Revenue Requirement: The revenue
required to recover annual expenses
(such as O&M, purchased
transmission capacity, interest and
deferred expenses) and repay Federal
investments and other assigned costs.
Supporting Documentation: A
compilation of data and documents
that support the Rate Brochure and
the rate proposal.
Western: United States Department of
Energy, Western Area Power
Administration.
Effective Date
The new provisional rates will take
effect on the first day of the first full
billing period beginning on or after
October 1, 2007, and will remain in
effect until September 30, 2012, pending
approval by FERC on a final basis.
Public Notice and Comment
Western followed the Procedures for
Public Participation in Power and
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Transmission Rate Adjustments and
Extensions, 10 CFR part 903, in
developing these rates. The steps
Western took to involve interested
parties in the rate process were:
1. On May 15, 2006, Western’s Desert
Southwest Region mailed a notice
announcing an informal meeting to all
Intertie customers and interested
parties. The informal meeting was held
June 15, 2006, in Phoenix, Arizona. At
this informal meeting, Western
explained the rationale for the rate
adjustment, presented proposed rates
and answered questions.
2. A FRN was published on July 12,
2006, (71 FR 39310) officially
announcing the proposed rates for
transmission service, initiating a public
consultation and comment period, and
announcing the public information and
public comment forums.
3. On July 28, 2006, Western’s Desert
Southwest Region mailed letters to all
Intertie customers and interested parties
transmitting a copy of the published
FRN (71 FR 39310).
4. On August 17, 2006, Western’s
Desert Southwest Region held a public
information forum in Phoenix, Arizona.
Western explained the proposed rates
and potential changes to the proposed
rates, answered questions, and provided
rate brochures and presentation
handouts.
5. On August 24, 2006, Western’s
Desert Southwest Region held a public
comment forum in Phoenix, Arizona to
give the public an opportunity to
comment for the record. There were no
comments at this forum.
6. Western received no comment
letters during the consultation and
comment period, which ended October
10, 2006.
7. A FRN was published on December
28, 2006 (71 FR 78189), extending the
public process for the rate adjustment
and announcing additional public
information and public comment
forums.
8. On December 29, 2006, Western’s
Desert Southwest Region mailed letters
to all Intertie customers and interested
parties transmitting a copy of the
published FRN (71 FR 78189).
9. On February 8, 2007, Western’s
Desert Southwest Region held an
additional public information forum in
Phoenix, Arizona. Western explained
alternatives to the proposed rates,
answered questions, and provided
presentation handouts.
10. On February 26, 2007, Western’s
Desert Southwest Region sent written
responses to customers’ questions that
were remaining from the additional
public information forum.
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11. On February 27, 2007, Western’s
Desert Southwest Region held an
additional public comment forum in
Phoenix, Arizona to give the public an
opportunity to comment for the record.
There were no comments at this forum.
12. Western received one comment
letter during the extended consultation
and comment period, which ended
March 28, 2007. All formally submitted
comments have been considered in
preparing this Rate Order.
13. Western provided a Web site for
information about this rate adjustment
process. The Web site is located at
https://www.wapa.gov/dsw/pwrmkt/
Intertie/RateAdjust.
Comments
Written comments were received from
the following organization: Arizona
Power Authority.
Project Description
The Intertie was authorized by
Section 8 of the Pacific Northwest
Power Marketing Act of August 31, 1964
(16 U.S.C. 837g). The basic purpose of
the Intertie was to provide, through
transmission system interconnections
among certain Federal and non-Federal
power systems, maximum utilization of
power resources to meet growing
demands. This purpose was to be
accomplished through the exchange of
summer-winter surplus peaking
capacity between the northwest and
southwest to reduce capital
expenditures for new generating
capacity; the sale of northwest
secondary energy to the southwest; the
sale of southwest energy to the
northwest to ‘‘firm’’ peaking
hydroelectric sources during critical
water years; conservation of significant
amounts of fuel through the use of
surplus hydroelectric energy; and
increased efficiency in the operation of
hydroelectric and thermal resources. As
authorized, the Intertie was to be a
cooperative construction venture by
Federal and non-Federal entities,
incorporating the capability for
alternating current (AC) and direct
current (DC) transmission service.
The Lower Colorado Region, Bureau
of Reclamation (Reclamation), U.S.
Department of the Interior, was assigned
construction jurisdiction for: (i) The
Celilo-Mead 750-kV DC transmission
line from the Oregon-Nevada border to
Mead Substation; (ii) Mead Substation;
and (iii) all facilities south of Mead
Substation. Several delays in
construction funding for the CeliloMead 750-kV DC transmission line
revised its estimated in-service date to
the point that potential users withdrew
their interest. This, and the subsequent
lack of congressional funding, resulted
in the May 1969 indefinite
postponement of the Celilo-Mead 750kV DC transmission line construction.
The only facilities constructed were
Mead Substation and all facilities south
of Mead Substation, which provide AC
transmission service. Pursuant to
section 302 of the Department of Energy
Organization Act (42 U.S.C. 7152), dated
August 4, 1977, these Reclamation
constructed facilities were transferred to
Western.
Western’s Desert Southwest Region
administers these facilities as a standalone transmission project for
operational, financial, and repayment
purposes. The transmission facilities
consist of a 256-mile, 500-kV
transmission line from Mead Substation
(Nevada) to Perkins Substation
(Arizona); a 202-mile, 500-kV
transmission line from Mead Substation
to Adelanto Switching Substation
(California); a 238-mile, 345-kV
transmission line from Mead Substation
to Liberty Substation (Arizona); a 19mile, 230-kV transmission line from
Liberty Substation to Westwing
Substation (Arizona); and a 22-mile,
230-kV transmission line from
Westwing Substation to Pinnacle Peak
Substation (Arizona).
57565
Power Repayment Study—
Transmission Service Rates
Western prepares a PRS each FY to
determine if revenues will be sufficient
to repay, within the required time, all
costs assigned to the Intertie revenues.
Repayment criteria are based on law,
policies, including DOE Order RA
6120.2, and authorizing legislation. To
meet the Cost Recovery Criteria outlined
in DOE Order RA 6120.2, a revised
study and rate adjustment have been
developed to demonstrate that sufficient
revenues will be collected to meet
future obligations.
The provisional rates for Intertie will
become effective on an interim basis on
the first day of the first full billing
period beginning on or after October 1,
2007. Under Rate Schedule INT–FT4,
the provisional rate for Intertie 230/345/
500-kV firm transmission service will
result in a rate decrease of
approximately 11.5 percent when
compared to the existing rate for Intertie
500-kV firm transmission service in Rate
Schedule INT–FT2, and a rate increase
of 27 percent when compared to the
existing rate for Intertie 230/345-kV firm
transmission service in Rate Schedule
INT–FT3. The current rate for Intertie
500-kV firm transmission service under
Rate Schedule INT–FT2 is $17.23 per
kWyear. The current rate for Intertie
230/345-kV firm transmission service
under Rate Schedule INT–FT3 is $12
per kWyear. The provisional rate for
Intertie 230/345/500-kV firm
transmission service is $15.24 per
kWyear. Under Rate Schedule INT–
NFT3, the provisional rate for Intertie
230/345/500-kV nonfirm transmission
service will result in a rate decrease of
13 percent. The current rate under Rate
Schedule INT–NFT2 is 2.00 mills/kWh.
The provisional rate is 1.74 mills/kWh.
Existing and Provisional Rates
A comparison of the existing and
provisional rates for Intertie
transmission service follows:
COMPARISON OF EXISTING AND PROVISIONAL RATES: PACIFIC NORTHWEST-PACIFIC SOUTHWEST INTERTIE PROJECT
Existing rates
Provisional rates (effective 10/1/07)
230/345-kV Firm ........................................
500-kV Firm ...............................................
230/345/500-kV Nonfirm ............................
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Transmission service
$12.00/kWyear ..........................................
$17.23 /kWyear .........................................
2.00 mills/kWh ...........................................
$15.24 /kWyear .........................................
$15.24 /kWyear .........................................
1.74 mills/kWh ...........................................
Certification of Rates
Western’s Administrator certified that
the provisional rates for Intertie
transmission service under Rate
Schedules INT–FT4 and IN–NFT3 are
the lowest possible rates consistent with
sound business principles. The
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provisional rates were developed
following administrative policies and
applicable laws.
Intertie Transmission Rate Discussion
According to Reclamation Law,
Western must establish transmission
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Change
27.0%
(11.5%)
(13.0%)
rates sufficient to recover operation,
maintenance, purchased transmission
and interest expenses, and repay
transmission investment.
The Intertie transmission rates are
insufficient due to higher-than-expected
costs for O&M and purchased
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transmission and lower-than-projected
sales of 500-kV transmission service that
have occurred since the existing rates
were established. Future cost estimates
for O&M and purchased transmission
have increased in the Ratesetting PRS.
In addition, sales forecasts of 500-kV
transmission service over the next five
years have been adjusted to allow
Western additional time to market this
service.
The lower-than-projected sales of 500kV transmission service and higherthan-expected costs for O&M and
purchased transmission have created
deficits in the Intertie PRS and these
conditions are expected to continue
through FY 2010. These deficits are
scheduled to be repaid within the
allowable period under the provisional
rates.
The existing rates for Intertie
transmission service under Rate
Schedules INT–FT2, INT–FT3, and
INT–NFT2 expire December 31, 2007.
Effective October 1, 2007, Rate
Schedules INT–FT2, INT–FT3, and
INT–NFT2 will be superseded by the
new rates in Rate Schedules INT–FT4
and INT–NFT3. The provisional rates
for Intertie transmission service consist
of a firm point-to-point rate and a
nonfirm point-to-point rate. The
provisional firm point-to-point rate is
$15.24 per kWyear, and the provisional
nonfirm point-to-point rate is 1.74
mills/kWh.
Western intends to modify its billing
practices for Intertie long-term firm
transmission service. Existing billing
practices require customers to pay for
long-term firm transmission service after
the fact, usually one month after the
service is provided. In today’s business
and economic environment, a
customer’s financial and credit status
can change quickly, and under existing
billing practices, Western can
experience up to four months of
uncollectible revenue before it becomes
apparent that a customer is unable to
pay its transmission service bills. On
more than one occasion, Western has
dealt with uncollectible revenue due to
a customer’s bankruptcy or credit rating
change. Western’s risk of non-payment
is further increased by the fact that
several of the Intertie long-term firm
transmission service customers are not
traditional preference customers. Many
are independent power producers and
other entities whose financial status can
significantly and rapidly change due to
the volatile energy market. Uncollectible
revenue places all ratepayers at risk,
since Western assumes full collection of
all revenue when developing rates for
long-term firm transmission service. To
the extent that revenue is uncollectible,
the rate will be insufficient to recover
revenue requirements, which will result
in upward pressure on rates for longterm transmission service.
To mitigate the credit risk exposure
and the uncollectible revenue
vulnerability, Western will require
Intertie customers to pay for long-term
firm transmission service one month in
advance. This requirement is
incorporated into Rate Schedule INT–
FT4 and will be implemented upon the
appropriate revision to Western’s Open
Access Transmission Tariff and notice
to long-term firm transmission service
customers.
Statement of Revenue and Related
Expenses
The following table provides a
summary of projected revenue and
expense data for the Intertie firm
transmission rate through the 5-year
provisional rate approval period.
INTERTIE FIRM TRANSMISSION RATE: COMPARISON OF 5-YEAR RATE PERIOD (FY 2008–FY 2012), TOTAL REVENUES AND
EXPENSES
Existing rate
($000)
Total Revenues ....................................................................................................................
Proposed rate
($000)
Difference
($000)
$140,577
$159,709
$19,132
21,899
0
2,397
90,569
2,174
32,043
2,755
2,397
99,305
3,699
10,144
2,755
0
8,736
1,525
Total Expenses ......................................................................................................
Principal Payments:
Capitalized Expenses ...................................................................................................
Original Project and Additions ......................................................................................
Replacements ...............................................................................................................
117,039
140,199
23,160
23,493
0
45
19,465
0
45
(4,028)
0
0
Total Principal Payments ......................................................................................
23,538
19,510
(4,028)
Total Revenue Distribution ..................................................................................................
140,577
159,709
19,132
Revenue Distribution
Expenses:
O&M ..............................................................................................................................
Purchased Transmission ..............................................................................................
Abandoned Project .......................................................................................................
Interest ..........................................................................................................................
Other .............................................................................................................................
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Basis for Rate Development
The existing rates for Intertie
transmission service under Rate
Schedules INT–FT2, INT–FT3, and
INT–NFT2 expire December 31, 2007.
The existing rates no longer provide
sufficient revenues to pay all annual
costs, including interest, and repayment
of investment within the allowable
period. The adjusted rates reflect cost
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increases primarily in O&M, purchased
transmission, and interest. The
provisional rates will provide sufficient
revenue to pay all annual costs,
including interest, and repayment of
investment within the allowable
periods. The provisional rates will take
effect on October 1, 2007, to correspond
with the start of the Federal fiscal year,
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and will remain in effect through
September 30, 2012.
Comments
The comments and responses
regarding the firm transmission rate,
paraphrased for brevity when not
affecting the meaning of the
statement(s), are discussed below. Direct
quotes from comment letters are used
for clarification where necessary.
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Comment: A customer supports
Western’s rate adjustment proposal
which includes having all deficits paid
by FY 2017 and commends Western for
exploring methods to control costs and
stabilize rates.
Response: Western appreciates the
support it has received during the
public process for this rate adjustment
proposal. Western will continue to work
with customers to control costs and
maintain stable transmission service
rates.
Comment: A customer supports
Western’s proposal to modify its
existing billing practices and require
payment in advance for Intertie longterm firm 230/345/500-kV transmission
service.
Response: Western acknowledges the
comment in support of the modification
in billing practices for Intertie long-term
firm 230/345/500-kV transmission
service. Western will proceed with
implementing the change as specified in
this rate order.
Availability of Information
Information about this rate
adjustment, including PRSs, comments,
letters, memorandums, and other
supporting material made or kept by
Western and used to develop the
provisional rates, is available for public
review in the Desert Southwest Regional
Office, Western Area Power
Administration, 615 South 43rd
Avenue, Phoenix, Arizona.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National
Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321, et seq.); Council
on Environmental Quality Regulations
for implementing NEPA (40 CFR parts
1500–1508); and DOE NEPA
Implementing Procedures and
Guidelines (10 CFR part 1021), Western
has determined that this action is
categorically excluded from preparing
an environmental assessment or an
environmental impact statement.
rwilkins on PROD1PC63 with NOTICES
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Submission to the Federal Energy
Regulatory Commission
The provisional interim rates herein
confirmed, approved, and placed into
effect, together with supporting
documents, will be submitted to FERC
for confirmation and final approval.
VerDate Aug<31>2005
17:08 Oct 09, 2007
Jkt 214001
Order
In view of the foregoing and under the
authority delegated to me, I confirm and
approve on an interim basis, effective
October 1, 2007, Rate Schedules INT–
FT4 and INT–NFT3 for the Pacific
Northwest-Pacific Southwest Intertie
Project of the Western Area Power
Administration. The rate schedules
shall remain in effect on an interim
basis pending FERC’s confirmation and
approval of them or substitute rates on
a final basis through September 30,
2012.
Dated: September 28, 2007.
Clay Sell,
Deputy Secretary of Energy.
Rate Schedule INT–FT4
(Supersedes Rate Schedules INT–FT2
and INT–FT3)
United States Department of Energy;
Western Area Power Administration
Pacific Northwest-Pacific Southwest
Intertie Project
Schedule of Rates for Long-Term and
Short-Term Firm Point-to-Point 230/
345/500-KV Transmission Service
Effective: The first day of the first full
billing period beginning on or after
October 1, 2007, and will remain in
effect through September 30, 2012, or
until superseded by another rate
schedule, whichever occurs first.
Available: In the area served by the
Pacific Northwest-Pacific Southwest
Intertie Project (Intertie) 230/345/500kV transmission system.
Applicable: To firm point-to-point
transmission service customers where
capacity and energy are supplied to the
Intertie 230/345/500-kV transmission
system at points of interconnection with
other systems and transmitted and
delivered, less losses, to points of
delivery on the Intertie 230/345/500-kV
transmission system.
Character and Conditions of Service:
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points of delivery
established by service agreement or
contract.
Long-Term Rate: For transmission
service one year or longer, the rate is
$15.24 for each kilowatt (kW) per year,
payable monthly at the rate of $1.27 for
each kW per month.
Short-Term Rates: For transmission
service up to one year, the maximum
rate for each kW is as follows:
Monthly: $1.27
Weekly: $0.2931
Daily: $0.0418
Hourly: 1.74 mills
Discounts may be offered from timeto-time in accordance with Western’s
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Fmt 4703
Sfmt 4703
57567
Open Access Transmission Tariff
(OATT).
Billing: Western will bill firm pointto-point transmission service customers
monthly by applying the rates listed
above to the amount of capacity
reserved. Upon the appropriate revision
to Western’s OATT and notification to
long-term firm transmission customers,
payment for service will be required one
month in advance of said service.
Adjustments for Reactive Power:
There shall be no entitlement to transfer
of reactive kilovolt-amperes at delivery
points, except when such transfers may
be mutually agreed upon by the
customer and Western or their
authorized representatives.
Adjustments for Losses: Capacity and
energy losses incurred in connection
with the transmission and delivery of
capacity and energy under this rate
schedule shall be supplied by the
customer in accordance with the service
agreement or contract.
Overrun of Capacity Reserved:
Western will assess a charge for
unauthorized use of transmission
service at a rate equal to two (2) times
the applicable rate for the service at
issue. The charge will be applied to use
in excess of the reservation amount
(‘‘the overrun’’), which shall be the
difference between the amount of
transmission service actually used by
the customer less the amount of
transmission service the customer has
reserved. The customer will incur the
charge for an overrun during the
calendar month or for the period of
transmission service if such service is
for a term of less than one month.
Rate Schedule INT–NFT3
(Supersedes Rate Schedule INT–NFT2)
United States Department of Energy;
Western Area Power Administration
Pacific Northwest-Pacific Southwest
Intertie Project
Schedule of Rate for Nonfirm 230/345/
500-kV Transmission Service
Effective: The first day of the first full
billing period beginning on or after
October 1, 2007, and will remain in
effect through September 30, 2012, or
until superseded by another rate
schedule, whichever occurs first.
Available: In the area served by the
Pacific Northwest-Pacific Southwest
Intertie Project (Intertie) 230/345/500kV transmission system.
Applicable: To nonfirm transmission
service customers where capacity and
energy are supplied to the Intertie 230/
345/500-kV transmission system at
points of interconnection with other
systems and transmitted and delivered,
less losses, to points of delivery on the
E:\FR\FM\10OCN1.SGM
10OCN1
57568
Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Notices
Intertie 230/345/500-kV transmission
system.
Character and Conditions of Service:
Interruptible transmission service on a
three-phase alternating current at 60
hertz, delivered and metered at the
voltages and points of delivery
established by service agreement or in
advance by Western. Curtailment
conditions shall be determined by
Western and in accordance with
Western’s Open Access Transmission
Tariff (OATT).
Rate: The nonfirm transmission
service rate is 1.74 mills for each
kilowatt per hour. Discounts may be
offered from time-to-time in accordance
with Western’s OATT.
Billing: Western will bill nonfirm
transmission service customers monthly
by applying the rate listed above to the
amount of capacity reserved.
Adjustments for Reactive Power:
There shall be no entitlement to transfer
of reactive kilovolt amperes at delivery
points, except when such transfers may
be mutually agreed upon by the
customer and Western or their
authorized representatives.
Adjustment for Losses: Capacity and
energy losses incurred in connection
with the transmission and delivery of
capacity and energy under this rate
schedule shall be supplied by the
customer in accordance with the service
agreement or contract.
[FR Doc. E7–19914 Filed 10–9–07; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OPP–2007–0409; FRL–8150–3]
The Association of American Pesticide
Control Officials (AAPCO)/State FIFRA
Issues Research and Evaluation Group
(SFIREG) Working Committee on Water
Quality/Pesticide Disposal (WC/
WQPD); Notice of Public Meeting
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
The Association of American
Pesticide Control Officials (AAPCO)/
State FIFRA Issues Research and
Evaluation Group (SFIREG) Working
Committee on Working Committee on
Water Quality & Pesticide Disposal
(WC/WQ/PD) will hold a 2–day
meeting, beginning on October 29, 2007
and ending October 30, 2007. This
notice announces the location and times
for the meeting and sets forth the
tentative agenda topics.
rwilkins on PROD1PC63 with NOTICES
SUMMARY:
VerDate Aug<31>2005
17:08 Oct 09, 2007
Jkt 214001
The meeting will be held on
October 29, 2007 from 8:30 a.m. to 5
p.m. and 8:30 a.m. to 12 noon on
October 30, 2007.
To request accommodation of a
disability, please contact the person
listed under FOR FURTHER INFORMATON
CONTACT, preferably at least 10 days
prior to the meeting, to give EPA as
much time as possible to process your
request.
ADDRESSES: The meeting will be held at
EPA, 2777 Crystal Dr., One Potomac
Yard South, 4th Floor South Conference
Center, Arlington, VA 22202.
FOR FURTHER INFORMATION CONTACT:
Georgia McDuffie, Field and External
Affairs Division, (7506P), Office of
Pesticide Programs, Environmental
Protection Agency, 1200 Pennsylvania
Ave., NW., Washington, DC 20460–
0001; telephone number: (703) 605–
0195; fax number: (703) 308–1850; email address: mcduffie.georgia@epa.gov
or Grier Stayton, Executive Secretary,
P.O. Box 466 Milford, DE 19963;
telephone number: (302) 422–8152; fax:
(302) 422–2435; email: ≥grier
stayton≥aapco-sfireg@comcast.net.
SUPPLEMENTARY INFORMATION:
DATES:
I. General Information
A. Does this Action Apply to Me?
You may be potentially affected by
this action if you are interested in
SFIREG information exchange
relationship with EPA regarding
important issues related to human
health, environmental exposure to
pesticides, and insight into EPA’s
decision-making process are invited and
encouraged to attend the meetings and
participate as appropriate. ’’ Potentially
affected entities may include, but are
not limited to: Those persons who are
or may be required to conduct testing of
chemical substances under the Federal
Food, Drug and Cosmetic Act (FFDCA),
or the Federal Insecticide, Fungicide,
and Rodenticide Act (FIFRA).
B. How Can I Get Copies of this
Document and Other Related
Information?
1. Docket. EPA has established a
docket for this action under docket
identification (ID) number EPA–HQ–
OPPT–2007–0409 Publicly available
docket materials are available either in
the electronic docket at https://
www.regulations.gov, or, if only
available in hard copy, at the Office of
Pesticide Programs (OPP) Regulatory
Public Docket in Rm. S–4400, One
Potomac Yard (South Bldg.), 2777 S.
Crystal Dr., Arlington, VA. The hours of
operation of this Docket Facility are
from 8:30 a.m. to 4 p.m., Monday
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
through Friday, excluding legal
holidays. The Docket Facility telephone
number is (703) 305–5805.
2. Electronic access. You may access
this Federal Register document
electronically through the EPA Internet
under the ‘‘Federal Register’’ listings at
https://www.epa.gov/fedrgstr.
II. Tentative Agenda
1. Buffers to Protect Surface Water
2. OPP Surface Water and Ground
Water Benchmarks
3. USGS Water Quality Pesticide
Projects
4. Container Recycling
5. Endangered Species: Water Quality
Issues
6. Performance Measures, ‘‘Pesticides
of Interest’’ List, On-line Reporting
7. SFIREG WQ/PD State Reporting
and Participation
8. Exposure Modeling Public Meeting:
Activities Report
9. SFIREG Disposal White Paper and
EPA Follow-up
10. Pesticide Degradate Information
Tracking
11. AAPCO/SFIREG & ASIWPCA
Benchmarks Project
12. Inert Ingredient WQ impacts:
Nonylpheonol Exthoxylates
13. Ground Water Advisory Statement
& Label Review Manual, Chapter 8
14. Atrazine: Post-IRED OPP
Activities Update
15. Office Water Atrazine
Implementation Workplan – Region 5
16. EPA Update/Briefing:
a. Office of Pesticide Programs Update
b. Office of Enforcement Compliance
Assurance Update
List of Subjects
Environmental protection.
Dated: September 26, 2007.
William R. Diamond,
Director, Field External Affairs Division,
Office of Pesticide Programs
[FR Doc. E7–19655 Filed 10–9–07; 8:45 am]
BILLING CODE 6560–50–S
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–8480–4]
Science Advisory Board Staff Office;
Clean Air Scientific Advisory
Committee (CASAC); Notification of a
Public Teleconference of the NOX and
SOX Secondary NAAQS Review Panel
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
SUMMARY: The Environmental Protection
Agency (EPA or Agency) Science
E:\FR\FM\10OCN1.SGM
10OCN1
]]>Agencies
[Federal Register Volume 72, Number 195 (Wednesday, October 10, 2007)]
[Notices]
[Pages 57563-57568]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19914]
[[Page 57563]]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Pacific Northwest-Pacific Southwest Intertie Project--Rate Order
No. WAPA-130
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Order Concerning Transmission Service Rates.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-130 and Rate Schedules INT-FT4 and INT-NFT3, placing
firm and nonfirm transmission service rates for the Pacific Northwest-
Pacific Southwest Intertie Project (Intertie) of the Western Area Power
Administration (Western) into effect on an interim basis. The
provisional rates will be in effect until the Federal Energy Regulatory
Commission (FERC) confirms, approves, and places them into effect on a
final basis, or until they are replaced by other rates. The provisional
rates will provide sufficient revenue to pay all annual costs,
including interest expense, and repay required investment within the
allowable periods.
DATES: Rate Schedules INT-FT4 and INT-NFT3 will be placed into effect
on an interim basis on the first day of the first full billing period
beginning on or after October 1, 2007, and will be in effect until FERC
confirms, approves, and places the rate schedules in effect on a final
basis ending September 30, 2012, or until the rate schedules are
superseded.
FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Regional
Manager, Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2453,
e-mail carlson@wapa.gov or Mr. Jack Murray, Rates Team Lead, Desert
Southwest Customer Service Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, e-mail
jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The existing Rate Schedules consist of
separate firm transmission service rates for the 230/345-kilovolt (kV)
and 500-kV transmission systems, and a nonfirm transmission service
rate for the 230/345/500-kV transmission system. Rate Schedules INT-FT2
and INT-NFT2, Rate Order No. WAPA-71, were approved for a 56-month
period beginning February 1, 1996, and ending September 30, 2000.\1\
Rate Schedule INT-FT3, Rate Order No. WAPA-76, superseded Rate Schedule
INT-FT2 as it related to firm transmission service on the 230/345-kV
transmission system and was approved for a 5-year period beginning
January 1, 1999, and ending December 31, 2003.\2\ Rate Order No. WAPA-
91 extended Rate Schedules INT-FT2 and INT-NFT2 beginning October 1,
2000, through December 31, 2003,\3\ as they related to firm
transmission service on the 500-kV transmission system and nonfirm
transmission service on the 230/345/500-kV transmission system. Rate
Order No. WAPA-108 extended Rate Schedules INT-FT2, INT-FT3, and INT-
NFT2 beginning January 1, 2004, through December 31, 2006.\4\ Western
initiated a public process to adjust all three transmission service
rates via a notice published in the Federal Register on July 12, 2006,
(71 FR 39310). Rate Order No. WAPA-133 extended the public process for
the rate adjustment that was initiated on July 12, 2006, and extended
the existing rate schedules again beginning January 1, 2007, through
December 31, 2007.\5\
---------------------------------------------------------------------------
\1\ WAPA-71 was approved by the Deputy Secretary of Energy on
January 31, 1996 (61 FR 4650), and confirmed and approved by FERC on
a final basis on July 24, 1996, in Docket No. EF96-5191-000 (76 FERC
] 62061).
\2 \ WAPA-76 was approved by the Deputy Secretary of Energy on
January 28, 1999 (64 FR 6344), and confirmed and approved by FERC on
a final basis on June 22, 1999, in Docket No. EF99-5191-000 (87 FERC
] 61346).
\3\ WAPA-91 was approved by the Deputy Secretary of Energy on
August 15, 2000 (65 FR 52423). FERC accepted this extension pursuant
to a letter order from Michael A. Coleman, Director, Division of
Tariffs and Rates-West dated October 19, 2000, in Docket No. EF00-
5191-000.
\4\ WAPA-108 was approved by the Deputy Secretary of Energy on
October 27, 2003 (68 FR 63083), and approved by FERC on a final
basis on March 25, 2004, in Docket No. EF04-5191-000 (106 FERC ]
62227).
\5\ WAPA-133 was approved by the Deputy Secretary of Energy on
December 21, 2006 (71 FR 78189) and filed with FERC for
informational purposes only, and docketed by FERC in Docket No.
EF07-5191-000 on December 21, 2006.
---------------------------------------------------------------------------
The existing firm transmission service Rate Schedules are being
superseded by Rate Schedule INT-FT4. Under Rate Schedule INT-FT2, the
rate for firm point-to-point 500-kV transmission service is $17.23 per
kilowattyear (kWyear). Under Rate Schedule INT-FT3, the rate for firm
point-to-point 230/345-kV transmission service is $12 per kWyear. The
provisional rate for firm point-to-point 230/345/500-kV transmission
service under Rate Schedule INT-FT4 is $15.24 per kWyear. The
provisional rate for firm transmission service in Rate Schedule INT-FT4
results in a decrease of about 11.5 percent when compared with the
existing rate under Rate Schedule INT-FT2, and an increase of 27
percent when compared with the existing rate under Rate Schedule INT-
FT3. The existing nonfirm transmission service Rate Schedule is being
superseded by Rate Schedule INT-NFT3. Under Rate Schedule INT-NFT2, the
rate for nonfirm point-to-point 230/345/500-kV transmission service is
2.00 mills per kilowatthour (kWh). The provisional rate for nonfirm
point-to-point 230/345/500-kV transmission service under Rate Schedule
INT-NFT3 is 1.74 mills per kWh. The provisional rate for nonfirm
transmission service in Rate Schedule INT-NFT3 results in a decrease of
13 percent when compared with the existing rate under Rate Schedule
INT-NFT2.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator, (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy, and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985.
Under Delegation Order Nos. 00-037.00 and 00-001.00C, and in
compliance with 10 CFR part 903, and 18 CFR part 300, I hereby confirm,
approve, and place Rate Order No. WAPA-130 and the proposed rates for
Intertie transmission service into effect on an interim basis. The new
Rate Schedules INT-FT4 and INT-NFT3 will be submitted promptly to FERC
for confirmation and approval on a final basis.
Dated: September 28, 2007.
Clay Sell,
Deputy Secretary of Energy.
Department of Energy, Deputy Secretary
[Rate Order No. WAPA-130]
In the Matter of: Western Area Power Administration Rate Adjustment for
the Pacific Northwest-Pacific Southwest Intertie Project; Order
Confirming, Approving, and Placing the Pacific Northwest-Pacific
Southwest Intertie Project Transmission Service Rates Into Effect on an
Interim Basis
These rates were established in accordance with section 302 of the
Department of Energy (DOE)
[[Page 57564]]
Organization Act (42 U.S.C. 7152). This Act transferred to and vested
in the Secretary of Energy, the power marketing functions of the
Secretary of the Department of the Interior and the Bureau of
Reclamation under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388),
as amended and supplemented by subsequent laws, particularly section
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and
other Acts that specifically apply to the project involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator, (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy, and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985.
Acronyms and Definitions
As used in this Rate Order, the following acronyms and definitions
apply:
Administrator: The Administrator of the Western Area Power
Administration.
Capacity: The electric capability of a generator, transformer,
transmission circuit, or other equipment. It is expressed in kilowatts.
CROD: Contract Rate of Delivery. The maximum amount of capacity made
available to a customer for a period specified under a contract or
service agreement.
Customer: An entity with a contract or service agreement that is
receiving service from Western's Desert Southwest Region.
Deficits: Deferred or unrecovered annual expenses.
DOE: United States Department of Energy.
DOE Order RA 6120.2: An order outlining power marketing administration
financial reporting and ratemaking procedures.
Desert Southwest Region: The Desert Southwest Customer Service Region
of Western.
Energy: Measured in terms of the work it is capable of doing over a
period of time. It is expressed in kilowatthours.
FERC: Federal Energy Regulatory Commission
Firm: type of product and/or service that is available at the time
requested by the customer.
FRN: Federal Register notice.
FY: Fiscal year; October 1 to September 30.
Intertie: Pacific Northwest-Pacific Southwest Intertie Project.
kV: Kilovolt--the electrical unit of measure of electric potential that
equals 1,000 volts.
kW: Kilowatt--the electrical unit of capacity that equals 1,000 watts.
kWh: Kilowatthour--the electrical unit of energy that equals 1,000
watts in 1 hour.
kWmonth: Kilowattmonth--the electrical unit of the monthly amount of
capacity.
kWyear: Kilowattyear--the electrical unit of the yearly amount of
capacity.
mill: A monetary denomination of the United States that equals one
tenth of a cent or one thousandth of a dollar.
mills/kWh: Mills per kilowatthour--a unit of charge.
NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et
seq.).
Nonfirm: A type of product and/or service not always available at the
time requested by the customer.
O&M: Operation and Maintenance.
Proposed Rate: A rate that has been recommended by Western to the
Deputy Secretary of Energy for approval.
Provisional Rate: A rate that has been confirmed, approved, and placed
into effect on an interim basis by the Deputy Secretary of Energy.
PRS: Power Repayment Study.
Rate Brochure: Documents prepared for public distribution explaining
the rationale and background for the rate proposal contained in this
rate order dated July 2006 and February 2007.
Ratesetting PRS: The PRS used for the rate adjustment proposal.
Revenue Requirement: The revenue required to recover annual expenses
(such as O&M, purchased transmission capacity, interest and deferred
expenses) and repay Federal investments and other assigned costs.
Supporting Documentation: A compilation of data and documents that
support the Rate Brochure and the rate proposal.
Western: United States Department of Energy, Western Area Power
Administration.
Effective Date
The new provisional rates will take effect on the first day of the
first full billing period beginning on or after October 1, 2007, and
will remain in effect until September 30, 2012, pending approval by
FERC on a final basis.
Public Notice and Comment
Western followed the Procedures for Public Participation in Power
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in
developing these rates. The steps Western took to involve interested
parties in the rate process were:
1. On May 15, 2006, Western's Desert Southwest Region mailed a
notice announcing an informal meeting to all Intertie customers and
interested parties. The informal meeting was held June 15, 2006, in
Phoenix, Arizona. At this informal meeting, Western explained the
rationale for the rate adjustment, presented proposed rates and
answered questions.
2. A FRN was published on July 12, 2006, (71 FR 39310) officially
announcing the proposed rates for transmission service, initiating a
public consultation and comment period, and announcing the public
information and public comment forums.
3. On July 28, 2006, Western's Desert Southwest Region mailed
letters to all Intertie customers and interested parties transmitting a
copy of the published FRN (71 FR 39310).
4. On August 17, 2006, Western's Desert Southwest Region held a
public information forum in Phoenix, Arizona. Western explained the
proposed rates and potential changes to the proposed rates, answered
questions, and provided rate brochures and presentation handouts.
5. On August 24, 2006, Western's Desert Southwest Region held a
public comment forum in Phoenix, Arizona to give the public an
opportunity to comment for the record. There were no comments at this
forum.
6. Western received no comment letters during the consultation and
comment period, which ended October 10, 2006.
7. A FRN was published on December 28, 2006 (71 FR 78189),
extending the public process for the rate adjustment and announcing
additional public information and public comment forums.
8. On December 29, 2006, Western's Desert Southwest Region mailed
letters to all Intertie customers and interested parties transmitting a
copy of the published FRN (71 FR 78189).
9. On February 8, 2007, Western's Desert Southwest Region held an
additional public information forum in Phoenix, Arizona. Western
explained alternatives to the proposed rates, answered questions, and
provided presentation handouts.
10. On February 26, 2007, Western's Desert Southwest Region sent
written responses to customers' questions that were remaining from the
additional public information forum.
[[Page 57565]]
11. On February 27, 2007, Western's Desert Southwest Region held an
additional public comment forum in Phoenix, Arizona to give the public
an opportunity to comment for the record. There were no comments at
this forum.
12. Western received one comment letter during the extended
consultation and comment period, which ended March 28, 2007. All
formally submitted comments have been considered in preparing this Rate
Order.
13. Western provided a Web site for information about this rate
adjustment process. The Web site is located at https://www.wapa.gov/dsw/
pwrmkt/Intertie/RateAdjust.
Comments
Written comments were received from the following organization:
Arizona Power Authority.
Project Description
The Intertie was authorized by Section 8 of the Pacific Northwest
Power Marketing Act of August 31, 1964 (16 U.S.C. 837g). The basic
purpose of the Intertie was to provide, through transmission system
interconnections among certain Federal and non-Federal power systems,
maximum utilization of power resources to meet growing demands. This
purpose was to be accomplished through the exchange of summer-winter
surplus peaking capacity between the northwest and southwest to reduce
capital expenditures for new generating capacity; the sale of northwest
secondary energy to the southwest; the sale of southwest energy to the
northwest to ``firm'' peaking hydroelectric sources during critical
water years; conservation of significant amounts of fuel through the
use of surplus hydroelectric energy; and increased efficiency in the
operation of hydroelectric and thermal resources. As authorized, the
Intertie was to be a cooperative construction venture by Federal and
non-Federal entities, incorporating the capability for alternating
current (AC) and direct current (DC) transmission service.
The Lower Colorado Region, Bureau of Reclamation (Reclamation),
U.S. Department of the Interior, was assigned construction jurisdiction
for: (i) The Celilo-Mead 750-kV DC transmission line from the Oregon-
Nevada border to Mead Substation; (ii) Mead Substation; and (iii) all
facilities south of Mead Substation. Several delays in construction
funding for the Celilo-Mead 750-kV DC transmission line revised its
estimated in-service date to the point that potential users withdrew
their interest. This, and the subsequent lack of congressional funding,
resulted in the May 1969 indefinite postponement of the Celilo-Mead
750-kV DC transmission line construction. The only facilities
constructed were Mead Substation and all facilities south of Mead
Substation, which provide AC transmission service. Pursuant to section
302 of the Department of Energy Organization Act (42 U.S.C. 7152),
dated August 4, 1977, these Reclamation constructed facilities were
transferred to Western.
Western's Desert Southwest Region administers these facilities as a
stand-alone transmission project for operational, financial, and
repayment purposes. The transmission facilities consist of a 256-mile,
500-kV transmission line from Mead Substation (Nevada) to Perkins
Substation (Arizona); a 202-mile, 500-kV transmission line from Mead
Substation to Adelanto Switching Substation (California); a 238-mile,
345-kV transmission line from Mead Substation to Liberty Substation
(Arizona); a 19-mile, 230-kV transmission line from Liberty Substation
to Westwing Substation (Arizona); and a 22-mile, 230-kV transmission
line from Westwing Substation to Pinnacle Peak Substation (Arizona).
Power Repayment Study--Transmission Service Rates
Western prepares a PRS each FY to determine if revenues will be
sufficient to repay, within the required time, all costs assigned to
the Intertie revenues. Repayment criteria are based on law, policies,
including DOE Order RA 6120.2, and authorizing legislation. To meet the
Cost Recovery Criteria outlined in DOE Order RA 6120.2, a revised study
and rate adjustment have been developed to demonstrate that sufficient
revenues will be collected to meet future obligations.
The provisional rates for Intertie will become effective on an
interim basis on the first day of the first full billing period
beginning on or after October 1, 2007. Under Rate Schedule INT-FT4, the
provisional rate for Intertie 230/345/500-kV firm transmission service
will result in a rate decrease of approximately 11.5 percent when
compared to the existing rate for Intertie 500-kV firm transmission
service in Rate Schedule INT-FT2, and a rate increase of 27 percent
when compared to the existing rate for Intertie 230/345-kV firm
transmission service in Rate Schedule INT-FT3. The current rate for
Intertie 500-kV firm transmission service under Rate Schedule INT-FT2
is $17.23 per kWyear. The current rate for Intertie 230/345-kV firm
transmission service under Rate Schedule INT-FT3 is $12 per kWyear. The
provisional rate for Intertie 230/345/500-kV firm transmission service
is $15.24 per kWyear. Under Rate Schedule INT-NFT3, the provisional
rate for Intertie 230/345/500-kV nonfirm transmission service will
result in a rate decrease of 13 percent. The current rate under Rate
Schedule INT-NFT2 is 2.00 mills/kWh. The provisional rate is 1.74
mills/kWh.
Existing and Provisional Rates
A comparison of the existing and provisional rates for Intertie
transmission service follows:
Comparison of Existing and Provisional Rates: Pacific Northwest-Pacific Southwest Intertie Project
----------------------------------------------------------------------------------------------------------------
Provisional rates
Transmission service Existing rates (effective 10/1/07) Change
----------------------------------------------------------------------------------------------------------------
230/345-kV Firm.......................... $12.00/kWyear............... $15.24 /kWyear............. 27.0%
500-kV Firm.............................. $17.23 /kWyear.............. $15.24 /kWyear............. (11.5%)
230/345/500-kV Nonfirm................... 2.00 mills/kWh.............. 1.74 mills/kWh............. (13.0%)
----------------------------------------------------------------------------------------------------------------
Certification of Rates
Western's Administrator certified that the provisional rates for
Intertie transmission service under Rate Schedules INT-FT4 and IN-NFT3
are the lowest possible rates consistent with sound business
principles. The provisional rates were developed following
administrative policies and applicable laws.
Intertie Transmission Rate Discussion
According to Reclamation Law, Western must establish transmission
rates sufficient to recover operation, maintenance, purchased
transmission and interest expenses, and repay transmission investment.
The Intertie transmission rates are insufficient due to higher-
than-expected costs for O&M and purchased
[[Page 57566]]
transmission and lower-than-projected sales of 500-kV transmission
service that have occurred since the existing rates were established.
Future cost estimates for O&M and purchased transmission have increased
in the Ratesetting PRS. In addition, sales forecasts of 500-kV
transmission service over the next five years have been adjusted to
allow Western additional time to market this service.
The lower-than-projected sales of 500-kV transmission service and
higher-than-expected costs for O&M and purchased transmission have
created deficits in the Intertie PRS and these conditions are expected
to continue through FY 2010. These deficits are scheduled to be repaid
within the allowable period under the provisional rates.
The existing rates for Intertie transmission service under Rate
Schedules INT-FT2, INT-FT3, and INT-NFT2 expire December 31, 2007.
Effective October 1, 2007, Rate Schedules INT-FT2, INT-FT3, and INT-
NFT2 will be superseded by the new rates in Rate Schedules INT-FT4 and
INT-NFT3. The provisional rates for Intertie transmission service
consist of a firm point-to-point rate and a nonfirm point-to-point
rate. The provisional firm point-to-point rate is $15.24 per kWyear,
and the provisional nonfirm point-to-point rate is 1.74 mills/kWh.
Western intends to modify its billing practices for Intertie long-
term firm transmission service. Existing billing practices require
customers to pay for long-term firm transmission service after the
fact, usually one month after the service is provided. In today's
business and economic environment, a customer's financial and credit
status can change quickly, and under existing billing practices,
Western can experience up to four months of uncollectible revenue
before it becomes apparent that a customer is unable to pay its
transmission service bills. On more than one occasion, Western has
dealt with uncollectible revenue due to a customer's bankruptcy or
credit rating change. Western's risk of non-payment is further
increased by the fact that several of the Intertie long-term firm
transmission service customers are not traditional preference
customers. Many are independent power producers and other entities
whose financial status can significantly and rapidly change due to the
volatile energy market. Uncollectible revenue places all ratepayers at
risk, since Western assumes full collection of all revenue when
developing rates for long-term firm transmission service. To the extent
that revenue is uncollectible, the rate will be insufficient to recover
revenue requirements, which will result in upward pressure on rates for
long-term transmission service.
To mitigate the credit risk exposure and the uncollectible revenue
vulnerability, Western will require Intertie customers to pay for long-
term firm transmission service one month in advance. This requirement
is incorporated into Rate Schedule INT-FT4 and will be implemented upon
the appropriate revision to Western's Open Access Transmission Tariff
and notice to long-term firm transmission service customers.
Statement of Revenue and Related Expenses
The following table provides a summary of projected revenue and
expense data for the Intertie firm transmission rate through the 5-year
provisional rate approval period.
Intertie Firm Transmission Rate: Comparison of 5-Year Rate Period (FY 2008-FY 2012), Total Revenues and Expenses
----------------------------------------------------------------------------------------------------------------
Existing rate Proposed rate Difference
($000) ($000) ($000)
----------------------------------------------------------------------------------------------------------------
Total Revenues.............................................. $140,577 $159,709 $19,132
----------------------------------------------------------------------------------------------------------------
Revenue Distribution
----------------------------------------------------------------------------------------------------------------
Expenses:
O&M..................................................... 21,899 32,043 10,144
Purchased Transmission.................................. 0 2,755 2,755
Abandoned Project....................................... 2,397 2,397 0
Interest................................................ 90,569 99,305 8,736
Other................................................... 2,174 3,699 1,525
---------------------------------------------------
Total Expenses...................................... 117,039 140,199 23,160
Principal Payments:
Capitalized Expenses.................................... 23,493 19,465 (4,028)
Original Project and Additions.......................... 0 0 0
Replacements............................................ 45 45 0
---------------------------------------------------
Total Principal Payments............................ 23,538 19,510 (4,028)
---------------------------------------------------
Total Revenue Distribution.................................. 140,577 159,709 19,132
----------------------------------------------------------------------------------------------------------------
Basis for Rate Development
The existing rates for Intertie transmission service under Rate
Schedules INT-FT2, INT-FT3, and INT-NFT2 expire December 31, 2007. The
existing rates no longer provide sufficient revenues to pay all annual
costs, including interest, and repayment of investment within the
allowable period. The adjusted rates reflect cost increases primarily
in O&M, purchased transmission, and interest. The provisional rates
will provide sufficient revenue to pay all annual costs, including
interest, and repayment of investment within the allowable periods. The
provisional rates will take effect on October 1, 2007, to correspond
with the start of the Federal fiscal year, and will remain in effect
through September 30, 2012.
Comments
The comments and responses regarding the firm transmission rate,
paraphrased for brevity when not affecting the meaning of the
statement(s), are discussed below. Direct quotes from comment letters
are used for clarification where necessary.
[[Page 57567]]
Comment: A customer supports Western's rate adjustment proposal
which includes having all deficits paid by FY 2017 and commends Western
for exploring methods to control costs and stabilize rates.
Response: Western appreciates the support it has received during
the public process for this rate adjustment proposal. Western will
continue to work with customers to control costs and maintain stable
transmission service rates.
Comment: A customer supports Western's proposal to modify its
existing billing practices and require payment in advance for Intertie
long-term firm 230/345/500-kV transmission service.
Response: Western acknowledges the comment in support of the
modification in billing practices for Intertie long-term firm 230/345/
500-kV transmission service. Western will proceed with implementing the
change as specified in this rate order.
Availability of Information
Information about this rate adjustment, including PRSs, comments,
letters, memorandums, and other supporting material made or kept by
Western and used to develop the provisional rates, is available for
public review in the Desert Southwest Regional Office, Western Area
Power Administration, 615 South 43rd Avenue, Phoenix, Arizona.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321, et seq.); Council on Environmental Quality
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western
has determined that this action is categorically excluded from
preparing an environmental assessment or an environmental impact
statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Submission to the Federal Energy Regulatory Commission
The provisional interim rates herein confirmed, approved, and
placed into effect, together with supporting documents, will be
submitted to FERC for confirmation and final approval.
Order
In view of the foregoing and under the authority delegated to me, I
confirm and approve on an interim basis, effective October 1, 2007,
Rate Schedules INT-FT4 and INT-NFT3 for the Pacific Northwest-Pacific
Southwest Intertie Project of the Western Area Power Administration.
The rate schedules shall remain in effect on an interim basis pending
FERC's confirmation and approval of them or substitute rates on a final
basis through September 30, 2012.
Dated: September 28, 2007.
Clay Sell,
Deputy Secretary of Energy.
Rate Schedule INT-FT4
(Supersedes Rate Schedules INT-FT2 and INT-FT3)
United States Department of Energy; Western Area Power Administration
Pacific Northwest-Pacific Southwest Intertie Project
Schedule of Rates for Long-Term and Short-Term Firm Point-to-Point 230/
345/500-KV Transmission Service
Effective: The first day of the first full billing period beginning
on or after October 1, 2007, and will remain in effect through
September 30, 2012, or until superseded by another rate schedule,
whichever occurs first.
Available: In the area served by the Pacific Northwest-Pacific
Southwest Intertie Project (Intertie) 230/345/500-kV transmission
system.
Applicable: To firm point-to-point transmission service customers
where capacity and energy are supplied to the Intertie 230/345/500-kV
transmission system at points of interconnection with other systems and
transmitted and delivered, less losses, to points of delivery on the
Intertie 230/345/500-kV transmission system.
Character and Conditions of Service: Alternating current at 60
hertz, three-phase, delivered and metered at the voltages and points of
delivery established by service agreement or contract.
Long-Term Rate: For transmission service one year or longer, the
rate is $15.24 for each kilowatt (kW) per year, payable monthly at the
rate of $1.27 for each kW per month.
Short-Term Rates: For transmission service up to one year, the
maximum rate for each kW is as follows:
Monthly: $1.27
Weekly: $0.2931
Daily: $0.0418
Hourly: 1.74 mills
Discounts may be offered from time-to-time in accordance with
Western's Open Access Transmission Tariff (OATT).
Billing: Western will bill firm point-to-point transmission service
customers monthly by applying the rates listed above to the amount of
capacity reserved. Upon the appropriate revision to Western's OATT and
notification to long-term firm transmission customers, payment for
service will be required one month in advance of said service.
Adjustments for Reactive Power: There shall be no entitlement to
transfer of reactive kilovolt-amperes at delivery points, except when
such transfers may be mutually agreed upon by the customer and Western
or their authorized representatives.
Adjustments for Losses: Capacity and energy losses incurred in
connection with the transmission and delivery of capacity and energy
under this rate schedule shall be supplied by the customer in
accordance with the service agreement or contract.
Overrun of Capacity Reserved: Western will assess a charge for
unauthorized use of transmission service at a rate equal to two (2)
times the applicable rate for the service at issue. The charge will be
applied to use in excess of the reservation amount (``the overrun''),
which shall be the difference between the amount of transmission
service actually used by the customer less the amount of transmission
service the customer has reserved. The customer will incur the charge
for an overrun during the calendar month or for the period of
transmission service if such service is for a term of less than one
month.
Rate Schedule INT-NFT3
(Supersedes Rate Schedule INT-NFT2)
United States Department of Energy; Western Area Power Administration
Pacific Northwest-Pacific Southwest Intertie Project
Schedule of Rate for Nonfirm 230/345/500-kV Transmission Service
Effective: The first day of the first full billing period beginning
on or after October 1, 2007, and will remain in effect through
September 30, 2012, or until superseded by another rate schedule,
whichever occurs first.
Available: In the area served by the Pacific Northwest-Pacific
Southwest Intertie Project (Intertie) 230/345/500-kV transmission
system.
Applicable: To nonfirm transmission service customers where
capacity and energy are supplied to the Intertie 230/345/500-kV
transmission system at points of interconnection with other systems and
transmitted and delivered, less losses, to points of delivery on the
[[Page 57568]]
Intertie 230/345/500-kV transmission system.
Character and Conditions of Service: Interruptible transmission
service on a three-phase alternating current at 60 hertz, delivered and
metered at the voltages and points of delivery established by service
agreement or in advance by Western. Curtailment conditions shall be
determined by Western and in accordance with Western's Open Access
Transmission Tariff (OATT).
Rate: The nonfirm transmission service rate is 1.74 mills for each
kilowatt per hour. Discounts may be offered from time-to-time in
accordance with Western's OATT.
Billing: Western will bill nonfirm transmission service customers
monthly by applying the rate listed above to the amount of capacity
reserved.
Adjustments for Reactive Power: There shall be no entitlement to
transfer of reactive kilovolt amperes at delivery points, except when
such transfers may be mutually agreed upon by the customer and Western
or their authorized representatives.
Adjustment for Losses: Capacity and energy losses incurred in
connection with the transmission and delivery of capacity and energy
under this rate schedule shall be supplied by the customer in
accordance with the service agreement or contract.
[FR Doc. E7-19914 Filed 10-9-07; 8:45 am]
BILLING CODE 6450-01-P
