Washoe Project-Rate Order No. WAPA-136, 42565-42570 [E8-16744]
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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).
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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.
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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.
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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)
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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 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
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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
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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.
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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
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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
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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) ........................
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Provisional revenue
requirement
($000)
$1,073
1,939
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$2,886
1,501
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Difference
($000)
$1,813
(438)
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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 https://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
https://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
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]]>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 $284,000
annually due to the change in generation revenues.
The proposed formula rate will increase the Stampede Revenue for
repayment of the Washoe Project, which is directly attributable to the
increased SEEA Rate. Under the 2004 Power Marketing Plan and the
provisional formula rate, Western transfers any reimbursable costs
remaining after netting them against Stampede Revenue to the CVP PRR.
Western transfers revenues collected through the CVP PRR for Stampede
reimbursable costs from the CVP to the Washoe Project annually.
Existing and Provisional Rates and Revenue Requirement
Rate schedule SNF-6 links the existing non-firm power formula rate
to the terminated contract with Sierra. In addition, the index that
Western uses in SNF-6 to set the ``floor rate'' in SNF-6 is linked to
language contained in the terminated contract. These two conditions
make it necessary for SNR to initiate a new rate case to align the non-
firm power formula rate to future third-party contractors. The
provisional formula rate SNF-7 will rectify the mismatches to the
terminated contract and will continue to calculate the Stampede annual
transferred PRR as a cost transferred to the CVP. The following table
compares the existing and provisional non-firm power formula rate
components as listed under the existing SNF-6 and provisional SNF-7
rate schedules.
Comparison of Existing and Provisional Floor/SEEA Rate and Revenue Requirement Washoe Project, Stampede
Powerplant
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Provisional rates
Non-firm energy sales and PRR Existing rates (effective 8/1/08) Percent change
----------------------------------------------------------------------------------------------------------------
Rate Schedule................................. SNF-6 SNF-7 ....................
Floor Rate or Average SEEA Rate (Mills/kWh) 0.01789 0.04785 167
for the Rate Period..........................
Average Estimated Stampede Annual Transferred 323,139 250,194 -23
PRR ($) for Rate Period......................
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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\]
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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)..........................................
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[[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
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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
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\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
