Washoe Project-Rate Order No. WAPA-136, 42565-42570 [E8-16744]

Download as PDF Federal Register / Vol. 73, No. 141 / Tuesday, July 22, 2008 / Notices DEPARTMENT OF ENERGY DEPARTMENT OF ENERGY Federal Energy Regulatory Commission Western Area Power Administration [Docket No. RP08–401–000; RP08–403–000] Washoe Project-Rate Order No. WAPA–136 Western Area Power Administration, DOE. ACTION: Notice of Order Concerning Non-Firm Power Formula Rate. AGENCY: Notice of Technical Conference July 14, 2008. Columbia Gas Transmission Corporation, Docket No. RP08–401–000, Atmos Energy Marketing, LLC, Docket No. RP08–403–000, BP Energy Company, Delta Energy, LLC, Direct Energy, Hess Corporation, Honda of America Mfg., Inc., Integrys Energy Services, Inc., Interstate Gas Supply, Inc., National Energy Marketers Association, Ohio Farm Bureau Federation, Sequent Energy Management, L.P., Complainants v. Columbia Gas Transmission Corporation, Respondent. sroberts on PROD1PC70 with NOTICES The Commission’s July 2, 2008 Order,1 in the above-captioned proceeding, directed that a technical conference be held to address issues raised by Columbia Gas Transmission Corporation’s (Columbia) Natural Gas Act (NGA) section 4 filing to clarify the nature of the Master List of Interconnect points and their use as identifiers of virtual scheduling points in Columbia’s tariff and the complaint filed by Atmos Energy Marketing, LLC, et al., pursuant to section 5 of the NGA. Take notice that a technical conference will be held on Tuesday, August 5, 2008 and Wednesday August 6, 2008. The conference will begin at 10 a.m. on both days in a room to be designated at the offices of the Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426. Participants are directed to make available persons familiar with contracting, nominating, scheduling and related practices on Columbia’s system. FERC conferences are accessible under section 508 of the Rehabilitation Act of 1973. For accessibility accommodations please send an e-mail to accessibility@ferc.gov or call toll free (866) 208–3372 (voice) or 202–502–8659 (TTY), or send a fax to 202–208–2106 with the required accommodations. All interested persons and staff are permitted to attend. For further procedural information please contact Robert Mclean at (202) 502–8156. Kimberly D. Bose, Secretary. [FR Doc. E8–16706 Filed 7–21–08; 8:45 am] BILLING CODE 6717–01–P 1 Columbia Gas Transmission Corp., 124 FERC ¶ 61,007 (2008). VerDate Aug<31>2005 19:47 Jul 21, 2008 Jkt 214001 SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA–136 and Rate Schedule SNF–7, placing a non-firm power formula rate from the Stampede Powerplant (Stampede) of the Washoe Project of the Western Area Power Administration (Western) into effect on an interim basis. The provisional rate will be in effect until the Federal Energy Regulatory Commission (FERC) confirms, approves, and places it into effect on a final basis or until it is replaced by another rate. The provisional rate will provide sufficient revenue to pay all annual costs, including interest expense, and repayment of power investment within allowable periods. DATES: Rate Schedule SNF–7 will be placed into effect on an interim basis on the first day of the first full billing period beginning on or after August 1, 2008, and will be in effect until FERC confirms, approves, and places the rate schedule in effect on a final basis through July 31, 2013, or until the rate schedule is superseded. FOR FURTHER INFORMATION CONTACT: Mr. Thomas Boyko, Regional Manager, Sierra Nevada Customer Service Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630–4710, (916) 353–4418 or Ms. Sonja A. Anderson, Power Marketing Manager, Sierra Nevada Customer Service Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630–4710, (916) 353– 4421, e-mail sanderso@wapa.gov. SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved existing Rate Schedule SNF–6, a nonfirm power formula rate on August 16, 2005.1 Rate Schedule SNF–6 is effective from October 1, 2005, through September 30, 2010. Rate schedule SNF–6 links the existing non-firm power formula rate to a contract with the Sierra Pacific Power Company (Sierra). The index that Western uses in SNF–6 to set the ‘‘floor rate’’ in SNF– 6 is linked to the same contract. Western 1 Rate Order No. WAPA–119, August 29, 2005. FERC confirmed and approved the rate schedule on May 4, 2006, under FERC Docket EF05–5161–000. PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 42565 terminated the contract with Sierra on July 31, 2007. As a result, it is necessary for Western to initiate a new rate case to align the non-firm power formula rate to future third-party contractors. As explained below, the provisional formula rate for Rate Schedule SNF–7 will rectify the mismatches to the terminated contract and will continue to calculate the Stampede annual transferred Power Revenue Requirement (PRR) as a cost transferred to the Central Valley Project (CVP). In order to serve project use loads and effectively market the energy from Stampede, Western has contracted with a third party (Contractor) that provides for a Stampede Energy Exchange Account (SEEA). The SEEA is an annual energy exchange account for Stampede energy. Under this contract, the Contractor accepts delivery of all energy generated from Stampede and integrates this generation into its resource portfolio. The monthly calculation of revenue from Stampede energy received by the Contractor is credited into the SEEA at the SEEA Rate. Western can use the SEEA to benefit project use facilities and market energy from Stampede to CVP preference customers. From 1994 to 2007, Sierra, through Contract 94–SAO–00010 (Contract 00010), has served as the Contractor integrating Stampede generation into its resource portfolio and serving station service and project use loads in Sierra’s service territory. SNF–6 links the current non-firm power formula rate to Contract 00010 and the management of the SEEA. In addition, the index that was used in Rate Schedule SNF–6 to set the floor rate was contained in Contract 00010. On May 10, 2007, the Truckee Donner Public Utility District (Truckee Donner) and the City of Fallon (Fallon), two preference customers located within Sierra’s Balancing Authority, entered into a contract with Western that replaces Contract 00010. This new contract with Truckee Donner and Fallon (TDF), Contract 07–SNR–01026 (Contract 01026), uses a market index methodology as the basis for valuing Stampede generation. The effective date of Contract 01026 was August 1, 2007. The change in contractors and the ‘‘floor rate’’ definition makes it necessary for Western to initiate a new rate adjustment to update the non-firm power formula rate. In this new rate design, Western is using a general term of ‘‘Contractor’’ in the development of the formula rate and resulting rate schedule in order to provide flexibility in the event the Contractor changes in the future. E:\FR\FM\22JYN1.SGM 22JYN1 42566 Federal Register / Vol. 73, No. 141 / Tuesday, July 22, 2008 / Notices The existing non-firm power Rate Schedule set the SEEA rate (previously known as the floor rate in SNF–6) at 17.89 mills per kilowatthour (mills/ kWh). Western estimates the proposed formula rate for non-firm power for the Washoe Project in Rate Schedule SNF– 7 will result in an average SEEA Rate for the rate period of 47.85 mills/kWh. This will result in an increase of 167 percent when compared with the existing Washoe Project non-firm power SEEA Rate under Rate Schedule SNF–6. 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. DOE published its existing procedures for public participation in power rate adjustments on September 18, 1985 (10 CFR Part 903 (2008)). Pursuant to paragraph 1.5 of Delegation Order No. 00–037.00, Western’s Administrator approved the power formula rate for the sale of shortterm, non-firm power to TDF effective August 1, 2007. The Administrator’s approval provided interim rate authority between the effective date of the new contract, August 1, 2007, and the effective date of the interim rate, August 1, 2008. The Administrator’s approval will expire on July 31, 2008. Under Delegation Order Nos. 00– 037.00 and 00–001.00C, 10 CFR Part 903, and 18 CFR Part 300, I hereby confirm, approve, and place Rate Order No. WAPA–136, the Washoe non-firm power formula rate into effect on an interim basis. The new Rate Schedule SNF–7 will be promptly submitted to FERC for confirmation and approval on a final basis. Dated: July 14, 2008. Jeffrey F. Kupfer, Acting Deputy Secretary. Department of Energy Deputy Secretary sroberts on PROD1PC70 with NOTICES In the matter of: Western Area Power Administration, Rate Adjustment for the Washoe Project, Stampede Division NonFirm Power Formula Rate; Rate Order No. WAPA–136 Order Confirming, Approving, and Placing the Washoe Project, Stampede Division, Non-Firm Power Formula Rate Into Effect on an Interim Basis This rate was established in accordance with section 302 of the Department of Energy (DOE) VerDate Aug<31>2005 19:47 Jul 21, 2008 Jkt 214001 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 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 Area Power Administration’s (Western) 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. DOE published its existing procedures for public participation in power rate adjustments (10 CFR Part 903) on September 18, 1985. Acronyms and Definitions As used in this Rate Order, the following acronyms and definitions apply: 2004 Power Marketing Plan: The 2004 Power Marketing Plan (64 FR 34417) effective January 1, 2005. Administrator: The Administrator of the Western Area Power Administration. Capacity: The electric capability of a generator, transformer, transmission circuit, or other equipment expressed in kilowatts. Composite Rate: The rate for non-firm power which is the total annual revenue requirement for capacity and energy divided by the total annual energy sales. It is expressed as mills/kWh and used for comparison purposes. Contractor: The third party(ies) who, under contract with Western, are responsible for (1) managing the Stampede Energy Exchange Account (SEEA) (2) integrating Stampede generation into their resource portfolio, and (3) ensuring that station service and project use loads are served for the Washoe Project. Customer: An entity with a contract that receives service from Western’s Sierra Nevada Customer Service Region (SNR). CVP: Central Valley Project—A multipurpose Federal water development project extending from the Cascade Range in northern California to PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 the plains along the Kern River south of Bakersfield, California. Deficits: Unpaid or deferred annual or interest expenses. DOE: United States Department of Energy. DOE Order RA 6120.2: An order outlining power marketing administration financial reporting and ratemaking procedures. Energy: Measured in terms of the work it is capable of doing over a period of time. It is expressed in kilowatthours. FERC: The Federal Energy Regulatory Commission. Floor Rate: Per Contract 00010 with Sierra, is equal to 85 percent of the then effective, non-time differentiated rate provided in Sierra’s California Quarterly Short-Term Purchase Price Schedule for as-available purchases from qualifying facilities with capacities of 100 kilowatts (kW) or less. FRN: Federal Register notice. FY: Fiscal Year; October 1 to September 30. kW: Kilowatt—The electrical unit of capacity that equals 1,000 watts. kWh: Kilowatthour—The electrical unit of energy that equals 1,000 watts delivered or used in 1 hour. Load: The amount of electric power or energy delivered or required at any specified point(s) on a transmission or distribution system. 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. The unit of charge for energy. MW: Megawatt—The electrical unit of capacity that equals 1 million watts or 1,000 kilowatts. NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et seq.). Non-firm: A type of product and/or service not always available at the time requested by the customer. O&M: Operation and Maintenance. Power: Capacity and Energy. Preference: The provisions of Reclamation Law which require Western to first make Federal power available to certain entities. For example, section 9(c) of the Reclamation Project Act of 1939 states that preference in the sale of Federal power shall be given to municipalities and other public corporations or agencies and also to cooperatives and other nonprofit organizations financed in whole or in part by loans made under the Rural Electrification Act of 1936 (43 U.S.C. 485h(c)). Project Use: Power used to operate Washoe Project facilities under Reclamation Law. Provisional Rate: A rate which has been confirmed, approved, and placed E:\FR\FM\22JYN1.SGM 22JYN1 sroberts on PROD1PC70 with NOTICES Federal Register / Vol. 73, No. 141 / Tuesday, July 22, 2008 / Notices into effect on an interim basis by the Deputy Secretary. PRR: Power Revenue Requirement— The annual revenue that must be collected to recover annual expenses such as O&M, purchase power, transmission service expenses, interest, deferred expenses, and repay Federal investments and other assigned costs. PRS: Power Repayment Study. Rate Brochure: A document explaining the rationale and background for the rate proposal contained in this Rate Order dated February 2008. Ratesetting PRS: The PRS used for the rate adjustment proposal. Reclamation: United States Department of the Interior, Bureau of Reclamation. Reclamation Law: A series of Federal laws. Viewed as a whole, these laws create the originating framework under which Western markets power. Revenue Requirement: The revenue required to recover annual expenses such as O&M, purchase power, transmission service expenses, interest, deferred expenses, and repay Federal investments and other assigned costs. SEEA: The Stampede Energy Exchange Account. SEEA Rate: The rate at which Stampede project generation is valued and credited to the SEEA. The SEEA Rate replaces the floor rate (WAPA Order No. 119). Sierra: Sierra Pacific Power Company also known as Nevada Power and Sierra Pacific Resources. SNR: The Sierra Nevada Customer Service Region of Western. Stampede: Power system facilities of Washoe Project, Stampede Division. Stampede Annual PRR: The total Power Revenue Requirement for Stampede required to repay all reimbursable annual costs, including interest and the investment within the allowable period. Stampede Revenue: Revenue generated from applying the SEEA Rate to project generation under the methodology established in a contract. Supporting Documentation: A compilation of data and documents that support the Rate Brochure and the rate proposal. TDF: Truckee Donner Public Utility District and City of Fallon—As of August 1, 2007, TDF is the third-party Contractor responsible for the management of the SEEA and Stampede generation. Washoe Project: A Reclamation project located in the Lahontan Basin in west-central Nevada and east-central California. Western: United States Department of Energy, Western Area Power Administration. VerDate Aug<31>2005 19:47 Jul 21, 2008 Jkt 214001 Effective Date The new provisional formula rate will take effect on the first day of the first full billing period beginning on or after August 1, 2008, and will remain in effect until July 31, 2013, 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 included: 1. A FRN published on February 6, 2008 (73 FR 6958), announced the proposed change of the non-firm power formula rate. This notice began the public consultation and comment period. 2. On February 6, 2008, Western emailed the FRN (73 FR 6958) to the SNR Preference Customers and interested parties explaining that this was a minor rate adjustment. While there was no public information or comment forum for this rate process (10 CFR part 903), Western informed interested parties of Western’s availability to explain the rationale for the rate adjustment and to discuss the studies that support the proposal for the change to the formula rate. 3. On February 6, 2008, Western also mailed letters to the SNR Preference Customers and interested parties transmitting the Web site address to obtain a copy of the FRN and providing instructions on how to receive a copy of the Rate Brochure. 4. Western communicated clarifying information on the proposed rate adjustment with the following Preference Customers and/or interested parties. This information is included in the record: Northern California Power Agency, California. Redding Electric Utility, California. Sacramento Municipal Utility District, California. 5. Western received no comment letters during the consultation and comment period, which ended on March 7, 2008. Project Description The Stampede Dam and Reservoir are located on the Little Truckee River immediately below the mouth of Davies Creek and approximately 8 miles above the confluence of the Little Truckee and Truckee Rivers. The dam and reservoir are in Sierra County, California, approximately 11 miles northeast of the town of Truckee. The water source for PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 42567 Stampede Reservoir is the Little Truckee River drainage basin containing about 136 square miles of densely wooded slopes and grass meadowlands. On August 1, 1956, as part of the Washoe Project, Congress authorized the Stampede Dam and Reservoir project, including hydroelectric power development. (70 Stat. 755 (1956)). When the United States built the Stampede Dam, it did not construct the power facilities because the power function was not economically justified. Subsequently, in July 1976, the United States re-evaluated constructing a powerplant at Stampede and published its findings in a special Reclamation report: Adding Powerplants at Existing Federal Dams in California. In the report, Reclamation recommended constructing a Stampede powerplant. As a result, Reclamation initiated definitive plan studies in FY 1977, and Reclamation completed construction in 1987. A one-half mile 60-kV transmission line interconnects the Stampede power facilities with Sierra’s transmission system. Reclamation operates Stampede Dam and Reservoir for four specific purposes: Flood control, fisheries enhancement, recreation, and power generation. The powerplant has a 3.65 MW generator and it provides approximately 12 million kWh of energy annually. The energy generated by the powerplant is first used to serve designated Washoe Project use loads. Western markets all remaining energy generation. Due to the nature of Washoe Project (run of the river), the energy produced is non-firm. To maximize the value of the non-firm energy, Western, in consultation with Reclamation, markets the energy under the conditions outlined in Western’s contract with a third-party Contractor. The Lahontan National Fish Hatchery and the Marble Bluff Fish Facility are the project use facilities entitled to energy from the Stampede Powerplant. The Marble Bluff Fish Hatchery is located on the Truckee River about 3.5 miles upstream from Pyramid Lake. The Lahontan National Fish Hatchery is located off the Carson River just south of Carson City in Gardnerville, Nevada. The loads at these facilities are projected to be approximately 2 million kWh annually. Section 2 of the Washoe Project Act outlined the repayment period to be ‘‘* * * over a period of not more than fifty years * * *’’ (70 Stat. 775). In addition, Section 4 stated the cost of Fish and Wildlife facilities, including the operations and maintenance, shall be non-reimbursable. (70 Stat. 776). Public Law No. 101–618 dated November 16, 1990, further made all E:\FR\FM\22JYN1.SGM 22JYN1 42568 Federal Register / Vol. 73, No. 141 / Tuesday, July 22, 2008 / Notices Washoe Project Facilities except Stampede Powerplant nonreimbursable. This was necessary because a 1982 court order requires that Stampede be operated for the benefit of endangered or threatened fish at Pyramid Lake. Power Repayment Study Western prepares a PRS each FY to determine if revenues are sufficient to repay, within the required time, all costs assigned to the Washoe Project power function. Repayment criteria are based on law, applicable policies, including DOE Order RA 6120.2, and authorizing legislation. To serve project use loads and effectively market the energy from Stampede, Western has entered into a contract with a third party (Contractor) that provides for an energy banking arrangement and establishes the SEEA. The SEEA is an annual energy exchange account for Stampede energy. Under this third-party contract, the Contractor accepts delivery of all energy generated from Stampede. The monthly calculation of revenue from Stampede energy received by the Contractor is credited into the SEEA at the SEEA Rate. Western can use the SEEA to benefit project use facilities and market energy from Stampede to CVP Preference Customers. In the SEEA, the revenues from sales (generation revenues) made at the SEEA Rate are reduced by the project use and station service power costs and SEEA administrative costs. In accordance with Western’s Letter of Agreement (LOA) with Reclamation (LOA 07–SNR– 01036), Western applies the ratio of projected project use costs to the projected generation revenue recorded in the SEEA to determine a nonreimbursable percentage. One hundred percent minus this non-reimbursable percentage establishes a reimbursable percentage. This reimbursable percentage is then applied to the appropriate power-related costs to determine the reimbursable costs for repayment. The reimbursable costs are then netted against generation revenues made at the SEEA Rate. Beginning in August 2007, due to the change in the SEEA Rate, Western anticipates a reduction in the nonreimbursable percentage for the Washoe Project. This condition will subsequently increase reimbursable costs to the Preference Customers. Western estimates that the reimbursable O&M costs could increase between $97,000 and $284,000 annually due to the change in generation revenues. The proposed formula rate will increase the Stampede Revenue for repayment of the Washoe Project, which is directly attributable to the increased SEEA Rate. Under the 2004 Power Marketing Plan and the provisional formula rate, Western transfers any reimbursable costs remaining after netting them against Stampede Revenue to the CVP PRR. Western transfers revenues collected through the CVP PRR for Stampede reimbursable costs from the CVP to the Washoe Project annually. Existing and Provisional Rates and Revenue Requirement Rate schedule SNF–6 links the existing non-firm power formula rate to the terminated contract with Sierra. In addition, the index that Western uses in SNF–6 to set the ‘‘floor rate’’ in SNF– 6 is linked to language contained in the terminated contract. These two conditions make it necessary for SNR to initiate a new rate case to align the nonfirm power formula rate to future thirdparty contractors. The provisional formula rate SNF–7 will rectify the mismatches to the terminated contract and will continue to calculate the Stampede annual transferred PRR as a cost transferred to the CVP. The following table compares the existing and provisional non-firm power formula rate components as listed under the existing SNF–6 and provisional SNF–7 rate schedules. COMPARISON OF EXISTING AND PROVISIONAL FLOOR/SEEA RATE AND REVENUE REQUIREMENT WASHOE PROJECT, STAMPEDE POWERPLANT Non-firm energy sales and PRR Rate Schedule ......................................................................................... Floor Rate or Average SEEA Rate (Mills/kWh) for the Rate Period ...... Average Estimated Stampede Annual Transferred PRR ($) for Rate Period ................................................................................................... Certification of Rates Western’s Administrator certified the provisional non-firm power formula rate for Stampede is the lowest possible rate consistent with sound business principles. Western developed the provisional formula rate following administrative policies and applicable laws. Provisional rates (effective 8/1/08) Existing rates Percent change SNF–6 0.01789 SNF–7 0.04785 .................................... 167 323,139 250,194 ¥23 Non-Firm Power Formula Rate and PRR Discussion Statement of Revenue and Related Expenses According to Reclamation Law, Western must establish rates sufficient to recover O&M, other annual and interest expenses, and repay power investment and irrigation aid. The following table provides a summary of projected revenues and expenses data for the Stampede nonfirm power formula rate through the 5year provisional rate approval period. STAMPEDE NON-FIRM POWER FORMULA RATE REVENUE REQUIREMENT COMPARISON OF 5–YEAR RATE PERIOD (AUGUST 1, 2008–JULY 31, 2013) sroberts on PROD1PC70 with NOTICES [Total revenues and expenses 1] Existing revenue requirement ($000) Generation Revenue .......................................................................................... Stampede Annual Transferred PRR (CVP Transfer Revenue) ........................ VerDate Aug<31>2005 19:47 Jul 21, 2008 Jkt 214001 PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 Provisional revenue requirement ($000) $1,073 1,939 E:\FR\FM\22JYN1.SGM $2,886 1,501 22JYN1 Difference ($000) $1,813 (438) 42569 Federal Register / Vol. 73, No. 141 / Tuesday, July 22, 2008 / Notices STAMPEDE NON-FIRM POWER FORMULA RATE REVENUE REQUIREMENT COMPARISON OF 5–YEAR RATE PERIOD (AUGUST 1, 2008–JULY 31, 2013)—Continued [Total revenues and expenses 1] Existing revenue requirement ($000) Provisional revenue requirement ($000) Difference ($000) Total Revenues .......................................................................................... 3,012 4,387 1,375 Revenue Distribution Expenses: O&M 2 ......................................................................................................... Project Use Expense .................................................................................. Interest ........................................................................................................ 0 1,199 549 1,371 1,199 557 1,371 0 8 Total Expenses .................................................................................... 1,748 3,127 1,379 Principal Payments: 3 Capitalized Deficits 4 ................................................................................... Original Project and Additions .................................................................... Replacements ............................................................................................. Irrigation ...................................................................................................... 1,264 0 0 N/A 1,260 0 0 N/A (4) 0 0 N/A Total Principal Payments .................................................................... 1,264 1,260 (4) Total Revenue Distribution ........................................................... 3,012 4,387 1,375 1 Existing and proposed rates are based on a historical generation average. The difference between the two rates is (1) different generation valuation rates and (2) different reimbursable percentages as a result of the generation value. 2 Western’s LOA with Reclamation (SNR–07–01036) articulates the calculation methodology for determining non-reimbursable costs for Stampede. Based on this LOA, the reimbursable percentage was calculated at 0.0 percent for the existing rates and 59 percent for the proposed rate adjustment. 3 For illustrative purposes, capital repayment for the existing and proposed ratesetting PRSs were set at identical levels in an effort to identify the impact of this rate adjustment on the Stampede Annual Transferred PRR. 4 Deficits are projected to be repaid by 2014. sroberts on PROD1PC70 with NOTICES Basis for Rate Development In the SEEA, the revenues from sales (generation revenues) made at the SEEA Rate are reduced by the project use and station service power costs and SEEA administrative costs. Western applies the ratio of project use costs to the generation revenue recorded in the SEEA to determine a non-reimbursable percentage. One hundred percent minus this non-reimbursable percentage establishes a reimbursable percentage. This reimbursable percentage is then applied to the appropriate power-related costs to determine the reimbursable costs for repayment. The reimbursable costs are then netted against generation revenues made at the SEEA Rate. As stipulated under the 2004 Power Marketing Plan, any remaining reimbursable costs, to include interest and annual capital costs, are then transferred to the CVP for incorporation into the CVP PRR. The provisional formula rate for Stampede power is: Stampede Annual Transferred PRR = Stampede Annual PRR ¥ Stampede Revenue Where: Stampede Annual Transferred Power Revenue Requirement (PRR) = Stampede Annual PRR as identified as a cost transferred to the CVP. VerDate Aug<31>2005 19:47 Jul 21, 2008 Jkt 214001 Stampede Annual PRR = The total PRR for Stampede required to repay all annual costs, including interest, and the investment within the allowable period. Stampede Revenue = Revenue from applying the SEEA rate to project generation. Western will review the PRR for the Stampede Powerplant semiannually in or around March and September each year. Western will also review the CVP PRR in March and September of each year (71 FR 45821). The CVP rate procedures stipulate that Western will analyze the CVP financial data from October through February, to the extent information is available, as well as forecasted data for March through September. In the case of Stampede, Western will use the most current PRS and the disposition of the SEEA account up through February and estimate March through September and other financial data, to the extent information is available, to determine the amount of costs to include in the CVP PRR. In September, when the next review occurs, Western will use the same methodology to include costs in the CVP PRR for the following year. Comments Western received no comments on the rate proposal during the public comment and consultation period that ended on March 7, 2008. PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 Availability of Information Information about this rate adjustment, including power repayment studies, comments, letters, memorandums, and other supporting material made or kept by Western and used to develop the provisional rate, is available for public review in the Sierra Nevada Regional Office, Western Area Power Administration, 114 Parkshore Drive, Folsom, California. Ratemaking Procedure Requirements Environmental Compliance In compliance with the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321, et seq.); the Council on Environmental Quality Regulations for implementing NEPA (40 CFR Parts 1500–1508); and DOE NEPA Implementing Procedures and Guidelines (10 CFR Part 1021), 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. E:\FR\FM\22JYN1.SGM 22JYN1 42570 Federal Register / Vol. 73, No. 141 / Tuesday, July 22, 2008 / Notices Submission to the Federal Energy Regulatory Commission Available Billing for the SEEA Rate will be as specified in the service agreement. Within the marketing area served by the Sierra Nevada Customer Service Region. SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), this document announces that an Information Collection Request (ICR) has been forwarded to the Office of Management and Budget (OMB) for review and approval. This is a request to renew an existing approved collection. The ICR which is abstracted below describes the nature of the collection and the estimated burden and cost. DATES: Additional comments may be submitted on or before August 21, 2008. ADDRESSES: Submit your comments, referencing docket ID number EPA–HQ– OECA–2007–0128, to (1) EPA online using http://www.regulations.gov (our preferred method), or by e-mail to docket.oeca@epa.gov, or by mail to: EPA Docket Center (EPA/DC), Environmental Protection Agency, Enforcement and Compliance Docket and Information Center, Mail Code 2201T, 1200 Pennsylvania Avenue, NW., Washington, DC 20460, and (2) OMB at: Office of Information and Regulatory Affairs, Office of Management and Budget (OMB), Attention: Desk Officer for EPA, 725 17th Street, NW., Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: ´ ´ Marıa Malave, Compliance Assessment and Media Programs Division, Mail Code 2223A, Office of Compliance, Environmental Protection Agency, 1200 Pennsylvania Avenue, NW., Washington, DC 20460; telephone number: (202) 564–7027; fax number: (202) 564–0050; e-mail address: malave.maria@epa.gov. Adjustment for Losses SUPPLEMENTARY INFORMATION: The interim rate 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 August 1, 2008, Rate Schedule SNF–7 for the Washoe Project, Stampede Division of the Western Area Power Administration. The rate schedule shall remain in effect on an interim basis, pending FERC’s confirmation and approval of them or substitute rate on a final basis through July 31, 2013. Dated: July 14, 2008. Jeffrey F. Kupfer, Acting Deputy Secretary. Rate Schedule SNF–7 (Supersedes Schedule SNF–6) United States Department of Energy Western Area Power Administration Washoe Project, Stampede Division Schedule of Rate for Non-Firm Power Formula Rate Effective The first day of the first full billing period beginning on or after August 1, 2008, through July 31, 2013, or until superseded by another rate schedule, whichever occurs earlier. Applicable To preference customers under the 2004 Power Marketing Plan and the applicable third party(ies) who are under contract (Contractor) with Western. sroberts on PROD1PC70 with NOTICES Losses will be accounted for under this rate schedule as stated in the service agreement. ENVIRONMENTAL PROTECTION AGENCY Non-Firm Power Formula Rate In order to serve project use loads and effectively market the energy from Stampede, Western has contracted with a third-party Contractor that provides for a Stampede Energy Exchange Account (SEEA). The SEEA is an annual energy exchange account for Stampede energy. In the SEEA, the revenues from sales (generation revenues) made at the Jkt 214001 Billing BILLING CODE 6450–01–P Alternating current, 60 hertz, threephase, delivered and metered at the voltages and points established by contract. 19:47 Jul 21, 2008 Where: Stampede Annual Transferred Power Revenue Requirement (PRR) = Stampede Annual PRR as identified as a cost transferred to the CVP. Stampede Annual PRR = The total PRR for Stampede required to repay all annual costs, including interest, and the investment within the allowable period. Stampede Revenue = Revenue from applying the SEEA Rate to project generation. [FR Doc. E8–16744 Filed 7–21–08; 8:45 am] Character and Conditions of Service VerDate Aug<31>2005 SEEA Rate are reduced by the project use and station service power costs and SEEA administrative costs. Western applies the ratio of project use costs to the generation revenue recorded in the SEEA to determine a non-reimbursable percentage. One hundred percent minus this non-reimbursable percentage establishes a reimbursable percentage. This reimbursable percentage is then applied to the appropriate power-related costs to determine the reimbursable costs for repayment. The reimbursable costs are then netted against generation revenues made at the SEEA Rate. As stipulated under the 2004 Power Marketing Plan, any remaining reimbursable costs, to include interest and annual capital costs, are then transferred to the Central Valley Project for incorporation into the CVP Power Revenue Requirement. The provisional formula rate for Stampede power is: Stampede Annual Transferred PRR = Stampede Annual PRR¥Stampede Revenue [EPA–HQ–OECA–2007–0128; FRL–8695–6] Agency Information Collection Activities; Submission to OMB for Review and Approval; Comment Request; NESHAP for Ferroalloys Production: Ferromanganese and Silicomanganese (Renewal), ICR Number 1831.04, OMB Number 2060– 0391 Environmental Protection Agency. ACTION: Notice. AGENCY: PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 EPA has submitted the following ICR to OMB for review and approval according to the procedures prescribed in 5 CFR 1320.12. On March 9, 2007 (72 FR 10735), EPA sought comments on this ICR pursuant to 5 CFR 1320.8(d). EPA received no comments. Any additional comments on this ICR should be submitted to EPA and OMB within 30 days of this notice. EPA has established a public docket for this ICR under docket ID number EPA–HQ–OECA–2007–0128, which is available for public viewing online at http://www.regulations.gov, in person viewing at the Enforcement and Compliance Docket in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Avenue, NW., Washington, DC. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 566–1744, and the telephone number for the E:\FR\FM\22JYN1.SGM 22JYN1

Agencies

[Federal Register Volume 73, Number 141 (Tuesday, July 22, 2008)]
[Notices]
[Pages 42565-42570]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16744]


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

DEPARTMENT OF ENERGY

Western Area Power Administration


Washoe Project-Rate Order No. WAPA-136

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Order Concerning Non-Firm Power Formula Rate.

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

SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate 
Order No. WAPA-136 and Rate Schedule SNF-7, placing a non-firm power 
formula rate from the Stampede Powerplant (Stampede) of the Washoe 
Project of the Western Area Power Administration (Western) into effect 
on an interim basis. The provisional rate will be in effect until the 
Federal Energy Regulatory Commission (FERC) confirms, approves, and 
places it into effect on a final basis or until it is replaced by 
another rate. The provisional rate will provide sufficient revenue to 
pay all annual costs, including interest expense, and repayment of 
power investment within allowable periods.

DATES: Rate Schedule SNF-7 will be placed into effect on an interim 
basis on the first day of the first full billing period beginning on or 
after August 1, 2008, and will be in effect until FERC confirms, 
approves, and places the rate schedule in effect on a final basis 
through July 31, 2013, or until the rate schedule is superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas Boyko, Regional Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4418 or Ms. Sonja A. Anderson, Power Marketing Manager, Sierra Nevada 
Customer Service Region, Western Area Power Administration, 114 
Parkshore Drive, Folsom, CA 95630-4710, (916) 353-4421, e-mail 
sanderso@wapa.gov.

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved 
existing Rate Schedule SNF-6, a non-firm power formula rate on August 
16, 2005.\1\ Rate Schedule SNF-6 is effective from October 1, 2005, 
through September 30, 2010. Rate schedule SNF-6 links the existing non-
firm power formula rate to a contract with the Sierra Pacific Power 
Company (Sierra). The index that Western uses in SNF-6 to set the 
``floor rate'' in SNF-6 is linked to the same contract. Western 
terminated the contract with Sierra on July 31, 2007. As a result, it 
is necessary for Western to initiate a new rate case to align the non-
firm power formula rate to future third-party contractors. As explained 
below, the provisional formula rate for Rate Schedule SNF-7 will 
rectify the mismatches to the terminated contract and will continue to 
calculate the Stampede annual transferred Power Revenue Requirement 
(PRR) as a cost transferred to the Central Valley Project (CVP).
---------------------------------------------------------------------------

    \1\ Rate Order No. WAPA-119, August 29, 2005. FERC confirmed and 
approved the rate schedule on May 4, 2006, under FERC Docket EF05-
5161-000.
---------------------------------------------------------------------------

    In order to serve project use loads and effectively market the 
energy from Stampede, Western has contracted with a third party 
(Contractor) that provides for a Stampede Energy Exchange Account 
(SEEA). The SEEA is an annual energy exchange account for Stampede 
energy. Under this contract, the Contractor accepts delivery of all 
energy generated from Stampede and integrates this generation into its 
resource portfolio. The monthly calculation of revenue from Stampede 
energy received by the Contractor is credited into the SEEA at the SEEA 
Rate. Western can use the SEEA to benefit project use facilities and 
market energy from Stampede to CVP preference customers.
    From 1994 to 2007, Sierra, through Contract 94-SAO-00010 (Contract 
00010), has served as the Contractor integrating Stampede generation 
into its resource portfolio and serving station service and project use 
loads in Sierra's service territory. SNF-6 links the current non-firm 
power formula rate to Contract 00010 and the management of the SEEA. In 
addition, the index that was used in Rate Schedule SNF-6 to set the 
floor rate was contained in Contract 00010.
    On May 10, 2007, the Truckee Donner Public Utility District 
(Truckee Donner) and the City of Fallon (Fallon), two preference 
customers located within Sierra's Balancing Authority, entered into a 
contract with Western that replaces Contract 00010. This new contract 
with Truckee Donner and Fallon (TDF), Contract 07-SNR-01026 (Contract 
01026), uses a market index methodology as the basis for valuing 
Stampede generation. The effective date of Contract 01026 was August 1, 
2007. The change in contractors and the ``floor rate'' definition makes 
it necessary for Western to initiate a new rate adjustment to update 
the non-firm power formula rate. In this new rate design, Western is 
using a general term of ``Contractor'' in the development of the 
formula rate and resulting rate schedule in order to provide 
flexibility in the event the Contractor changes in the future.

[[Page 42566]]

    The existing non-firm power Rate Schedule set the SEEA rate 
(previously known as the floor rate in SNF-6) at 17.89 mills per 
kilowatthour (mills/kWh). Western estimates the proposed formula rate 
for non-firm power for the Washoe Project in Rate Schedule SNF-7 will 
result in an average SEEA Rate for the rate period of 47.85 mills/kWh. 
This will result in an increase of 167 percent when compared with the 
existing Washoe Project non-firm power SEEA Rate under Rate Schedule 
SNF-6.
    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. DOE published its existing procedures 
for public participation in power rate adjustments on September 18, 
1985 (10 CFR Part 903 (2008)).
    Pursuant to paragraph 1.5 of Delegation Order No. 00-037.00, 
Western's Administrator approved the power formula rate for the sale of 
short-term, non-firm power to TDF effective August 1, 2007. The 
Administrator's approval provided interim rate authority between the 
effective date of the new contract, August 1, 2007, and the effective 
date of the interim rate, August 1, 2008. The Administrator's approval 
will expire on July 31, 2008.
    Under Delegation Order Nos. 00-037.00 and 00-001.00C, 10 CFR Part 
903, and 18 CFR Part 300, I hereby confirm, approve, and place Rate 
Order No. WAPA-136, the Washoe non-firm power formula rate into effect 
on an interim basis. The new Rate Schedule SNF-7 will be promptly 
submitted to FERC for confirmation and approval on a final basis.

    Dated: July 14, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.

Department of Energy Deputy Secretary

    In the matter of: Western Area Power Administration, Rate 
Adjustment for the Washoe Project, Stampede Division Non-Firm Power 
Formula Rate; Rate Order No. WAPA-136

Order Confirming, Approving, and Placing the Washoe Project, Stampede 
Division, Non-Firm Power Formula Rate Into Effect on an Interim Basis

    This rate was established in accordance with section 302 of the 
Department of Energy (DOE) Organization Act (42 U.S.C. 7152). This Act 
transferred to and vested in the Secretary of Energy the power 
marketing functions of the Secretary of the Department of the Interior 
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 Area Power Administration's (Western) 
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. 
DOE published its existing procedures for public participation in power 
rate adjustments (10 CFR Part 903) on September 18, 1985.

Acronyms and Definitions

    As used in this Rate Order, the following acronyms and definitions 
apply:
    2004 Power Marketing Plan: The 2004 Power Marketing Plan (64 FR 
34417) effective January 1, 2005.
    Administrator: The Administrator of the Western Area Power 
Administration.
    Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment expressed in kilowatts.
    Composite Rate: The rate for non-firm power which is the total 
annual revenue requirement for capacity and energy divided by the total 
annual energy sales. It is expressed as mills/kWh and used for 
comparison purposes.
    Contractor: The third party(ies) who, under contract with Western, 
are responsible for (1) managing the Stampede Energy Exchange Account 
(SEEA) (2) integrating Stampede generation into their resource 
portfolio, and (3) ensuring that station service and project use loads 
are served for the Washoe Project.
    Customer: An entity with a contract that receives service from 
Western's Sierra Nevada Customer Service Region (SNR).
    CVP: Central Valley Project--A multipurpose Federal water 
development project extending from the Cascade Range in northern 
California to the plains along the Kern River south of Bakersfield, 
California.
    Deficits: Unpaid or deferred annual or interest expenses.
    DOE: United States Department of Energy.
    DOE Order RA 6120.2: An order outlining power marketing 
administration financial reporting and ratemaking procedures.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time. It is expressed in kilowatthours.
    FERC: The Federal Energy Regulatory Commission.
    Floor Rate: Per Contract 00010 with Sierra, is equal to 85 percent 
of the then effective, non-time differentiated rate provided in 
Sierra's California Quarterly Short-Term Purchase Price Schedule for 
as-available purchases from qualifying facilities with capacities of 
100 kilowatts (kW) or less.
    FRN: Federal Register notice.
    FY: Fiscal Year; October 1 to September 30.
    kW: Kilowatt--The electrical unit of capacity that equals 1,000 
watts.
    kWh: Kilowatthour--The electrical unit of energy that equals 1,000 
watts delivered or used in 1 hour.
    Load: The amount of electric power or energy delivered or required 
at any specified point(s) on a transmission or distribution system.
    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. The unit of charge for energy.
    MW: Megawatt--The electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.
    NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et 
seq.).
    Non-firm: A type of product and/or service not always available at 
the time requested by the customer.
    O&M: Operation and Maintenance.
    Power: Capacity and Energy.
    Preference: The provisions of Reclamation Law which require Western 
to first make Federal power available to certain entities. For example, 
section 9(c) of the Reclamation Project Act of 1939 states that 
preference in the sale of Federal power shall be given to 
municipalities and other public corporations or agencies and also to 
cooperatives and other nonprofit organizations financed in whole or in 
part by loans made under the Rural Electrification Act of 1936 (43 
U.S.C. 485h(c)).
    Project Use: Power used to operate Washoe Project facilities under 
Reclamation Law.
    Provisional Rate: A rate which has been confirmed, approved, and 
placed

[[Page 42567]]

into effect on an interim basis by the Deputy Secretary.
    PRR: Power Revenue Requirement--The annual revenue that must be 
collected to recover annual expenses such as O&M, purchase power, 
transmission service expenses, interest, deferred expenses, and repay 
Federal investments and other assigned costs.
    PRS: Power Repayment Study.
    Rate Brochure: A document explaining the rationale and background 
for the rate proposal contained in this Rate Order dated February 2008.
    Ratesetting PRS: The PRS used for the rate adjustment proposal.
    Reclamation: United States Department of the Interior, Bureau of 
Reclamation.
    Reclamation Law: A series of Federal laws. Viewed as a whole, these 
laws create the originating framework under which Western markets 
power.
    Revenue Requirement: The revenue required to recover annual 
expenses such as O&M, purchase power, transmission service expenses, 
interest, deferred expenses, and repay Federal investments and other 
assigned costs.
    SEEA: The Stampede Energy Exchange Account.
    SEEA Rate: The rate at which Stampede project generation is valued 
and credited to the SEEA. The SEEA Rate replaces the floor rate (WAPA 
Order No. 119).
    Sierra: Sierra Pacific Power Company also known as Nevada Power and 
Sierra Pacific Resources.
    SNR: The Sierra Nevada Customer Service Region of Western.
    Stampede: Power system facilities of Washoe Project, Stampede 
Division.
    Stampede Annual PRR: The total Power Revenue Requirement for 
Stampede required to repay all reimbursable annual costs, including 
interest and the investment within the allowable period.
    Stampede Revenue: Revenue generated from applying the SEEA Rate to 
project generation under the methodology established in a contract.
    Supporting Documentation: A compilation of data and documents that 
support the Rate Brochure and the rate proposal.
    TDF: Truckee Donner Public Utility District and City of Fallon--As 
of August 1, 2007, TDF is the third-party Contractor responsible for 
the management of the SEEA and Stampede generation.
    Washoe Project: A Reclamation project located in the Lahontan Basin 
in west-central Nevada and east-central California.
    Western: United States Department of Energy, Western Area Power 
Administration.

Effective Date

    The new provisional formula rate will take effect on the first day 
of the first full billing period beginning on or after August 1, 2008, 
and will remain in effect until July 31, 2013, 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 included:
    1. A FRN published on February 6, 2008 (73 FR 6958), announced the 
proposed change of the non-firm power formula rate. This notice began 
the public consultation and comment period.
    2. On February 6, 2008, Western e-mailed the FRN (73 FR 6958) to 
the SNR Preference Customers and interested parties explaining that 
this was a minor rate adjustment. While there was no public information 
or comment forum for this rate process (10 CFR part 903), Western 
informed interested parties of Western's availability to explain the 
rationale for the rate adjustment and to discuss the studies that 
support the proposal for the change to the formula rate.
    3. On February 6, 2008, Western also mailed letters to the SNR 
Preference Customers and interested parties transmitting the Web site 
address to obtain a copy of the FRN and providing instructions on how 
to receive a copy of the Rate Brochure.
    4. Western communicated clarifying information on the proposed rate 
adjustment with the following Preference Customers and/or interested 
parties. This information is included in the record:

Northern California Power Agency, California.
Redding Electric Utility, California.
Sacramento Municipal Utility District, California.

    5. Western received no comment letters during the consultation and 
comment period, which ended on March 7, 2008.

Project Description

    The Stampede Dam and Reservoir are located on the Little Truckee 
River immediately below the mouth of Davies Creek and approximately 8 
miles above the confluence of the Little Truckee and Truckee Rivers. 
The dam and reservoir are in Sierra County, California, approximately 
11 miles northeast of the town of Truckee. The water source for 
Stampede Reservoir is the Little Truckee River drainage basin 
containing about 136 square miles of densely wooded slopes and grass 
meadowlands.
    On August 1, 1956, as part of the Washoe Project, Congress 
authorized the Stampede Dam and Reservoir project, including 
hydroelectric power development. (70 Stat. 755 (1956)). When the United 
States built the Stampede Dam, it did not construct the power 
facilities because the power function was not economically justified.
    Subsequently, in July 1976, the United States re-evaluated 
constructing a powerplant at Stampede and published its findings in a 
special Reclamation report: Adding Powerplants at Existing Federal Dams 
in California. In the report, Reclamation recommended constructing a 
Stampede powerplant. As a result, Reclamation initiated definitive plan 
studies in FY 1977, and Reclamation completed construction in 1987. A 
one-half mile 60-kV transmission line interconnects the Stampede power 
facilities with Sierra's transmission system.
    Reclamation operates Stampede Dam and Reservoir for four specific 
purposes: Flood control, fisheries enhancement, recreation, and power 
generation. The powerplant has a 3.65 MW generator and it provides 
approximately 12 million kWh of energy annually. The energy generated 
by the powerplant is first used to serve designated Washoe Project use 
loads. Western markets all remaining energy generation. Due to the 
nature of Washoe Project (run of the river), the energy produced is 
non-firm. To maximize the value of the non-firm energy, Western, in 
consultation with Reclamation, markets the energy under the conditions 
outlined in Western's contract with a third-party Contractor.
    The Lahontan National Fish Hatchery and the Marble Bluff Fish 
Facility are the project use facilities entitled to energy from the 
Stampede Powerplant. The Marble Bluff Fish Hatchery is located on the 
Truckee River about 3.5 miles upstream from Pyramid Lake. The Lahontan 
National Fish Hatchery is located off the Carson River just south of 
Carson City in Gardnerville, Nevada. The loads at these facilities are 
projected to be approximately 2 million kWh annually.
    Section 2 of the Washoe Project Act outlined the repayment period 
to be ``* * * over a period of not more than fifty years * * *'' (70 
Stat. 775). In addition, Section 4 stated the cost of Fish and Wildlife 
facilities, including the operations and maintenance, shall be non-
reimbursable. (70 Stat. 776). Public Law No. 101-618 dated November 16, 
1990, further made all

[[Page 42568]]

Washoe Project Facilities except Stampede Powerplant non-reimbursable. 
This was necessary because a 1982 court order requires that Stampede be 
operated for the benefit of endangered or threatened fish at Pyramid 
Lake.

Power Repayment Study

    Western prepares a PRS each FY to determine if revenues are 
sufficient to repay, within the required time, all costs assigned to 
the Washoe Project power function. Repayment criteria are based on law, 
applicable policies, including DOE Order RA 6120.2, and authorizing 
legislation.
    To serve project use loads and effectively market the energy from 
Stampede, Western has entered into a contract with a third party 
(Contractor) that provides for an energy banking arrangement and 
establishes the SEEA. The SEEA is an annual energy exchange account for 
Stampede energy. Under this third-party contract, the Contractor 
accepts delivery of all energy generated from Stampede. The monthly 
calculation of revenue from Stampede energy received by the Contractor 
is credited into the SEEA at the SEEA Rate. Western can use the SEEA to 
benefit project use facilities and market energy from Stampede to CVP 
Preference Customers.
    In the SEEA, the revenues from sales (generation revenues) made at 
the SEEA Rate are reduced by the project use and station service power 
costs and SEEA administrative costs. In accordance with Western's 
Letter of Agreement (LOA) with Reclamation (LOA 07-SNR-01036), Western 
applies the ratio of projected project use costs to the projected 
generation revenue recorded in the SEEA to determine a non-reimbursable 
percentage. One hundred percent minus this non-reimbursable percentage 
establishes a reimbursable percentage. This reimbursable percentage is 
then applied to the appropriate power-related costs to determine the 
reimbursable costs for repayment. The reimbursable costs are then 
netted against generation revenues made at the SEEA Rate.
    Beginning in August 2007, due to the change in the SEEA Rate, 
Western anticipates a reduction in the non-reimbursable percentage for 
the Washoe Project. This condition will subsequently increase 
reimbursable costs to the Preference Customers. Western estimates that 
the reimbursable O&M costs could increase between $97,000 and $284,000 
annually due to the change in generation revenues.
    The proposed formula rate will increase the Stampede Revenue for 
repayment of the Washoe Project, which is directly attributable to the 
increased SEEA Rate. Under the 2004 Power Marketing Plan and the 
provisional formula rate, Western transfers any reimbursable costs 
remaining after netting them against Stampede Revenue to the CVP PRR. 
Western transfers revenues collected through the CVP PRR for Stampede 
reimbursable costs from the CVP to the Washoe Project annually.

Existing and Provisional Rates and Revenue Requirement

    Rate schedule SNF-6 links the existing non-firm power formula rate 
to the terminated contract with Sierra. In addition, the index that 
Western uses in SNF-6 to set the ``floor rate'' in SNF-6 is linked to 
language contained in the terminated contract. These two conditions 
make it necessary for SNR to initiate a new rate case to align the non-
firm power formula rate to future third-party contractors. The 
provisional formula rate SNF-7 will rectify the mismatches to the 
terminated contract and will continue to calculate the Stampede annual 
transferred PRR as a cost transferred to the CVP. The following table 
compares the existing and provisional non-firm power formula rate 
components as listed under the existing SNF-6 and provisional SNF-7 
rate schedules.

     Comparison of Existing and Provisional Floor/SEEA Rate and Revenue Requirement Washoe Project, Stampede
                                                   Powerplant
----------------------------------------------------------------------------------------------------------------
                                                                        Provisional rates
         Non-firm energy sales and PRR             Existing rates      (effective 8/1/08)      Percent change
----------------------------------------------------------------------------------------------------------------
Rate Schedule.................................                 SNF-6                 SNF-7  ....................
Floor Rate or Average SEEA Rate (Mills/kWh)                  0.01789               0.04785                   167
 for the Rate Period..........................
Average Estimated Stampede Annual Transferred                323,139               250,194                   -23
 PRR ($) for Rate Period......................
----------------------------------------------------------------------------------------------------------------

Certification of Rates

    Western's Administrator certified the provisional non-firm power 
formula rate for Stampede is the lowest possible rate consistent with 
sound business principles. Western developed the provisional formula 
rate following administrative policies and applicable laws.

Non-Firm Power Formula Rate and PRR Discussion

    According to Reclamation Law, Western must establish rates 
sufficient to recover O&M, other annual and interest expenses, and 
repay power investment and irrigation aid.

Statement of Revenue and Related Expenses

    The following table provides a summary of projected revenues and 
expenses data for the Stampede non-firm power formula rate through the 
5-year provisional rate approval period.

 Stampede Non-Firm Power Formula Rate Revenue Requirement Comparison of 5-Year Rate Period (August 1, 2008-July
                                                    31, 2013)
                                        [Total revenues and expenses \1\]
----------------------------------------------------------------------------------------------------------------
                                                                             Provisional
                                                      Existing revenue         revenue
                                                         requirement         requirement      Difference  ($000)
                                                           ($000)              ($000)
----------------------------------------------------------------------------------------------------------------
Generation Revenue.................................              $1,073              $2,886              $1,813
Stampede Annual Transferred PRR (CVP Transfer                     1,939               1,501                (438)
 Revenue)..........................................
                                                    ------------------------------------------------------------

[[Page 42569]]

 
    Total Revenues.................................               3,012               4,387               1,375
                                                    ============================================================
                Revenue Distribution
Expenses:
    O&M \2\........................................                   0               1,371               1,371
    Project Use Expense............................               1,199               1,199                   0
    Interest.......................................                 549                 557                   8
                                                    ------------------------------------------------------------
        Total Expenses.............................               1,748               3,127               1,379
                                                    ============================================================
Principal Payments: \3\
    Capitalized Deficits \4\.......................               1,264               1,260                  (4)
    Original Project and Additions.................                   0                   0                   0
    Replacements...................................                   0                   0                   0
    Irrigation.....................................                 N/A                 N/A                 N/A
                                                    ------------------------------------------------------------
        Total Principal Payments...................               1,264               1,260                  (4)
                                                    ============================================================
            Total Revenue Distribution.............               3,012               4,387               1,375
----------------------------------------------------------------------------------------------------------------
\1\ Existing and proposed rates are based on a historical generation average. The difference between the two
  rates is (1) different generation valuation rates and (2) different reimbursable percentages as a result of
  the generation value.
\2\ Western's LOA with Reclamation (SNR-07-01036) articulates the calculation methodology for determining non-
  reimbursable costs for Stampede. Based on this LOA, the reimbursable percentage was calculated at 0.0 percent
  for the existing rates and 59 percent for the proposed rate adjustment.
\3\ For illustrative purposes, capital repayment for the existing and proposed ratesetting PRSs were set at
  identical levels in an effort to identify the impact of this rate adjustment on the Stampede Annual
  Transferred PRR.
\4\ Deficits are projected to be repaid by 2014.

Basis for Rate Development

    In the SEEA, the revenues from sales (generation revenues) made at 
the SEEA Rate are reduced by the project use and station service power 
costs and SEEA administrative costs. Western applies the ratio of 
project use costs to the generation revenue recorded in the SEEA to 
determine a non-reimbursable percentage. One hundred percent minus this 
non-reimbursable percentage establishes a reimbursable percentage. This 
reimbursable percentage is then applied to the appropriate power-
related costs to determine the reimbursable costs for repayment. The 
reimbursable costs are then netted against generation revenues made at 
the SEEA Rate. As stipulated under the 2004 Power Marketing Plan, any 
remaining reimbursable costs, to include interest and annual capital 
costs, are then transferred to the CVP for incorporation into the CVP 
PRR.
    The provisional formula rate for Stampede power is:

Stampede Annual Transferred PRR = Stampede Annual PRR - Stampede 
Revenue

Where:

Stampede Annual Transferred Power Revenue Requirement (PRR) = 
Stampede Annual PRR as identified as a cost transferred to the CVP.
Stampede Annual PRR = The total PRR for Stampede required to repay 
all annual costs, including interest, and the investment within the 
allowable period.
Stampede Revenue = Revenue from applying the SEEA rate to project 
generation.

Western will review the PRR for the Stampede Powerplant semiannually in 
or around March and September each year. Western will also review the 
CVP PRR in March and September of each year (71 FR 45821). The CVP rate 
procedures stipulate that Western will analyze the CVP financial data 
from October through February, to the extent information is available, 
as well as forecasted data for March through September. In the case of 
Stampede, Western will use the most current PRS and the disposition of 
the SEEA account up through February and estimate March through 
September and other financial data, to the extent information is 
available, to determine the amount of costs to include in the CVP PRR. 
In September, when the next review occurs, Western will use the same 
methodology to include costs in the CVP PRR for the following year.

Comments

    Western received no comments on the rate proposal during the public 
comment and consultation period that ended on March 7, 2008.

Availability of Information

    Information about this rate adjustment, including power repayment 
studies, comments, letters, memorandums, and other supporting material 
made or kept by Western and used to develop the provisional rate, is 
available for public review in the Sierra Nevada Regional Office, 
Western Area Power Administration, 114 Parkshore Drive, Folsom, 
California.

Ratemaking Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969 (42 U.S.C. 4321, et seq.); the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR Parts 1500-1508); and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR Part 1021), 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.

[[Page 42570]]

Submission to the Federal Energy Regulatory Commission

    The interim rate 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 August 1, 2008, Rate 
Schedule SNF-7 for the Washoe Project, Stampede Division of the Western 
Area Power Administration. The rate schedule shall remain in effect on 
an interim basis, pending FERC's confirmation and approval of them or 
substitute rate on a final basis through July 31, 2013.


    Dated: July 14, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
Rate Schedule SNF-7
(Supersedes Schedule SNF-6)

United States Department of Energy Western Area Power Administration

Washoe Project, Stampede Division

Schedule of Rate for Non-Firm Power Formula Rate

Effective
    The first day of the first full billing period beginning on or 
after August 1, 2008, through July 31, 2013, or until superseded by 
another rate schedule, whichever occurs earlier.
Available
    Within the marketing area served by the Sierra Nevada Customer 
Service Region.
Applicable
    To preference customers under the 2004 Power Marketing Plan and the 
applicable third party(ies) who are under contract (Contractor) with 
Western.
Character and Conditions of Service
    Alternating current, 60 hertz, three-phase, delivered and metered 
at the voltages and points established by contract.
Non-Firm Power Formula Rate
    In order to serve project use loads and effectively market the 
energy from Stampede, Western has contracted with a third-party 
Contractor that provides for a Stampede Energy Exchange Account (SEEA). 
The SEEA is an annual energy exchange account for Stampede energy. In 
the SEEA, the revenues from sales (generation revenues) made at the 
SEEA Rate are reduced by the project use and station service power 
costs and SEEA administrative costs. Western applies the ratio of 
project use costs to the generation revenue recorded in the SEEA to 
determine a non-reimbursable percentage. One hundred percent minus this 
non-reimbursable percentage establishes a reimbursable percentage. This 
reimbursable percentage is then applied to the appropriate power-
related costs to determine the reimbursable costs for repayment. The 
reimbursable costs are then netted against generation revenues made at 
the SEEA Rate. As stipulated under the 2004 Power Marketing Plan, any 
remaining reimbursable costs, to include interest and annual capital 
costs, are then transferred to the Central Valley Project for 
incorporation into the CVP Power Revenue Requirement.
    The provisional formula rate for Stampede power is:

Stampede Annual Transferred PRR = Stampede Annual PRR-Stampede Revenue

Where:

Stampede Annual Transferred Power Revenue Requirement (PRR) = 
Stampede Annual PRR as identified as a cost transferred to the CVP.
Stampede Annual PRR = The total PRR for Stampede required to repay 
all annual costs, including interest, and the investment within the 
allowable period.
Stampede Revenue = Revenue from applying the SEEA Rate to project 
generation.
Billing
    Billing for the SEEA Rate will be as specified in the service 
agreement.
Adjustment for Losses
    Losses will be accounted for under this rate schedule as stated in 
the service agreement.

 [FR Doc. E8-16744 Filed 7-21-08; 8:45 am]
BILLING CODE 6450-01-P