Parker-Davis Project-Rate Order No. WAPA-138, 54588-54594 [E8-22096]
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Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
adequately represented by any other
parties. You do not need intervenor
status to have your environmental
comments considered.
Availability of Additional Information
Additional information about the
project is available from the
Commission’s Office of External Affairs,
at 1–866–208–FERC or on the FERC
Internet Web site (https://www.ferc.gov)
using the eLibrary link. Click on the
eLibrary link, click on ‘‘General Search’’
and enter the docket number excluding
the last three digits in the Docket
Number field. Be sure you have selected
an appropriate date range. For
assistance, please contact FERC Online
Support at FercOnlineSupport@ferc.gov
or toll free at 1–866–208–3676, or for
TTY, contact (202) 502–8659. The
eLibrary link also provides access to the
texts of formal documents issued by the
Commission, such as orders, notices,
and rulemakings.
In addition, the Commission now
offers a free service called eSubscription
which allows you to keep track of all
formal issuances and submittals in
specific dockets. This can reduce the
amount of time you spend researching
proceedings by automatically providing
you with notification of these filings,
document summaries and direct links to
the documents. Go to https://
www.ferc.gov/esubscribenow.htm.
Finally, public meetings or site visits
will be posted on the Commission’s
calendar located at https://www.ferc.gov/
EventCalendar/EventsList.aspx along
with other related information.
Kimberly D. Bose,
Secretary.
[FR Doc. E8–22008 Filed 9–19–08; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Parker-Davis Project-Rate Order No.
WAPA–138
Western Area Power
Administration, DOE.
ACTION: Notice of Order Concerning
Firm Electric and Transmission Service
Formula Rates.
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AGENCY:
SUMMARY: The Deputy Secretary of
Energy confirmed and approved Rate
Order No. WAPA–138 and Rate
Schedules PD–F7, PD–FT7, PD–FCT7,
and PD–NFT7 placing firm electric and
transmission service formula rates for
the Parker-Davis Project (P–DP) of the
Western Area Power Administration
(Western) into effect on an interim basis.
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The provisional rates will be in effect
until the Federal Energy Regulatory
Commission (FERC) confirms, approves,
and places them into effect on a final
basis or until they are replaced by other
rates. The provisional formula rates will
provide sufficient revenue to pay all
annual costs, including interest
expense, and repayment of investment,
within the allowable periods.
DATES: Rate Schedules PD–F7, PD–FT7,
PD–FCT7, and PD–NFT7 will be placed
into effect on an interim basis on the
first day of the first full billing period
beginning on or after October 1, 2008,
and will be in effect until FERC
confirms, approves, and places the rate
schedules in effect on a final basis
through September 30, 2013, or until the
rate schedule is superseded.
FOR FURTHER INFORMATION CONTACT: Mr.
J. Tyler Carlson, Regional Manager,
Desert Southwest Customer Service
Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457, (602) 605–
2453, carlson@wapa.gov, or Mr. Jack
Murray, Rates Manager, Desert
Southwest Customer Service Region,
Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005–
6457, (602) 605–2442,
jmurray@wapa.gov.
Rate
Schedules PD–F6, PD–FT6, PD–FCT6,
and PD–NFT6 were approved under
Rate Order No. WAPA–75 for the period
beginning November 1, 1997, and
ending September 30, 2002.1 These rate
schedules were extended through
September 30, 2004, by the approval of
Rate Order No. WAPA–98 on September
13, 2002.2 These rate schedules were
extended again through September 30,
2006, by the approval of Rate Order No.
WAPA–113 approved on September 2,
2004.3 These rate schedules were
extended again through September 30,
2008, by Rate Order No. WAPA–131
approved on September 22, 2006.4
SUPPLEMENTARY INFORMATION:
1 WAPA–75 was approved by the Deputy
Secretary of Energy on November 18, 1997 (62 FR
63150), and confirmed and approved by FERC on
a final basis on March 10, 1998, in Docket No.
EF98–5041–000 (82 FERC 62164).
2 WAPA–98 was approved by the Secretary of
Energy on September 13, 2002 (67 FR 60655), filed
with FERC for informational purposes only, and
docketed by FERC on September 24, 2002, in
Docket No. EF02–5041–000.
3 WAPA–113 was approved by the Deputy
Secretary of Energy on September 2, 2004 (69 FR
55429), filed with FERC for informational purposes
only, and docketed by FERC on September 3, 2004,
in Docket No. EF04–5042–000.
4 WAPA–131 was approved by the Deputy
Secretary of Energy on September 22, 2006 (71 FR
57941), and filed with FERC for informational
purposes only, and docketed by FERC on
September 22, 2006, in Docket No. EF06–5042–000.
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Rate Schedule PD–F6 for firm electric
service is being superseded by Rate
Schedule PD–F7. Under Rate Schedule
PD–F7, the capacity rate is $17.45 per
kilowattyear (kWyear), and the energy
rate is 3.32 mills per kilowatthour
(mills/kWh). The provisional rates in
Rate Schedule PD–F7 equal the existing
rates under Rate Schedule PD–F6.
Rate Schedules PD–FT6 and PD–FCT6
for firm point-to-point transmission
service and firm transmission of Salt
Lake City Area/Integrated Projects
power are being superseded by Rate
Schedules PD–FT7 and PD–FCT7. The
provisional transmission rates under
Rate Schedules PD–FT7 and PD–FCT7
are $12.96/kWyear, which is equal to
the existing rates under Rate Schedules
PD–FT6 and PD–FCT6.
Rate Schedule PD–NFT6 for nonfirm
transmission service is being
superseded by Rate Schedule PD–NFT7.
Under Rate Schedule PD–NFT6, the
existing nonfirm transmission rate is
2.47 mills/kWh. The provisional
nonfirm transmission rate under Rate
Schedule PD–NFT7 is 1.48 mills/kWh.
A change to the existing formula for
calculating the nonfirm transmission
rate resulted in a 40 percent decrease
when compared to the existing rate. The
modification to the nonfirm
transmission rate formula ensures that
the nonfirm transmission rate will not
exceed the firm transmission rate.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to Western’s
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand or
to disapprove such rates to FERC.
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985.
Under Delegation Order Nos. 00–
037.00 and 00–001.00C, 10 CFR part
903, and 18 CFR part 300, I hereby
confirm, approve, and place Rate Order
No. WAPA–138, the proposed P–DP
firm electric and transmission service
formula rates, into effect on an interim
basis. The new Rate Schedules PD–F7,
PD–FT7, PD–FCT7, and PD–NFT7 will
be promptly submitted to FERC for
confirmation and approval on a final
basis.
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Dated: September 12, 2008.
Jeffery F. Kupfer,
Acting Deputy Secretary.
Department of Energy
Deputy Secretary
Rate Order No. WAPA–138.
In the matter of: Western Area Power
Administration Rate Adjustment for the
Parker-Davis Project Firm Electric and
Transmission Service Formula Rates:
Order Confirming, Approving, and
Placing the Parker-Davis Project Firm
Electric and Transmission Service
Formula Rates Into Effect on an Interim
Basis
These rates were 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 and the
Bureau of Reclamation under the
Reclamation Act of 1902 (ch. 1093, 32
Stat. 388), as amended and
supplemented by subsequent laws,
particularly section 9(c) of the
Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other Acts that
specifically apply to the project
involved.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to Western’s
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand or
to disapprove such rates to the Federal
Energy Regulatory Commission (FERC).
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985.
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Acronyms and Definitions
As used in this Rate Order, the
following acronyms and definitions
apply:
Administrator: The Administrator of the
Western Area Power Administration.
Capacity: The electric capability of a
generator, transformer, transmission
circuit, or other equipment. It is
expressed in kilowatts.
Capacity Rate: The rate which sets forth
the charges for capacity. It is
expressed in dollars per killowattyear
and applied to each kW of
reservation.
CME: Capitalized Moveable Equipment.
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Customer: An entity with a contract that
is receiving firm electric service or
transmission service from the ParkerDavis Project.
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.
Energy Rate: The rate which sets forth
the charges for energy. It is expressed
in mills per kilowatthour and applied
to each kilowatthour of reservation.
FERC: The Federal Energy Regulatory
Commission.
Firm: A type of product and/or service
guaranteed to be available in
accordance with the terms of the
contract.
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 in 1
hour.
kWyear: Kilowattyear—the electrical
unit of the yearly amount of capacity.
Mill: A monetary denomination of the
United States that equals one tenth of
a cent or one thousandth of a dollar.
Mills/kWh: Mills per kilowatthour—a
unit of charge for energy.
Nonfirm: A type of product and/or
service not always available at the
time requested by the Customer.
O&M: Operation and Maintenance.
MWD: The Metropolitan Water District
of Southern California.
P–DP: The Parker-Davis Project.
Power: Capacity and energy.
Proposed Rate: A rate that has been
recommended by Western to the
Deputy Secretary of the DOE for
approval.
Provisional Rate: A rate which has been
confirmed, approved, and placed into
effect on an interim basis by the
Deputy Secretary of the DOE.
PRS: Power Repayment Study.
Rate Brochure: A document explaining
the rationale and background for the
rate proposal contained in this Rate
Order.
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,
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54589
interest, deferred expenses,
repayment of Federal investments,
and other assigned costs.
SCADA: Supervisory Control and Data
Acquisition.
SLCA/IP: Salt Lake City Area/Integrated
Projects—the resources of the
Collbran, Dolores, Rio Grande, and
Seedskadee projects blended together
with the CRSP to create the SLCA/IP.
Supporting Documentation: A
compilation of data and documents
that support the Rate Brochure and
the rate proposal.
Western: United States Department of
Energy, Western Area Power
Administration.
Effective Date
The new interim formula rates will
take effect on the first day of the first
full billing period beginning on or after
October 1, 2008, and will remain in
effect until September 30, 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 formula rates. The
proposed action constituted a minor rate
adjustment as defined by 10 CFR part
903.2. As such, Western determined that
it was not necessary to hold public
information or comment forums. The
steps Western took to involve interested
parties in the rate process were:
1. On October 11, 2007, Western’s
Desert Southwest Region mailed a
notice announcing an informal meeting
to the P–DP customers and interested
parties. The informal meeting was held
November 14, 2007, in Phoenix,
Arizona. At this informal meeting,
Western explained the rationale for the
rate adjustment, presented options for
the proposed formula rates, and
answered questions.
2. On December 14, 2007, Western’s
Desert Southwest Region e-mailed the
P–DP customers and interested parties
to provide the Web site address to
obtain the supplemental information
that was requested by the customers at
the informal meeting held November 14,
2007.
3. On February 1, 2008, Western’s
Desert Southwest Region mailed a
notice announcing a second informal
meeting to the P–DP customers and
interested parties. The second informal
meeting was held March 12, 2008, in
Phoenix, Arizona. At this informal
meeting, Western explained the minor
rate adjustment process and presented
proposed formula rates that included
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customer input from the informal
meeting held November 14, 2008.
4. An FRN published on April 29,
2008 (73 FR 23248), announced the
proposed formula rates. This notice
began a public consultation and
comment period.
5. On May 1, 2008, Western’s Desert
Southwest Region e-mailed the FRN (73
FR 23248) to the P–DP customers and
interested parties and provided the Web
site address to obtain a copy of the Rate
Brochure and supporting
documentation.
6. Western received one comment
letter during the consultation and
comment period, which ended on May
29, 2008. All formally submitted
comments have been considered in
preparing this Rate Order.
Comments
Written comments were received from
the Irrigation & Electrical Districts
Association of Arizona.
Project Description
The P–DP was formed by
consolidating two projects, Parker Dam
and Davis Dam, under the terms of the
Act of May 28, 1954. All facilities of the
P–DP were operated and maintained by
Reclamation until the formation of the
Department of Energy pursuant to the
Department of Energy Organization Act
(DOE Act). Pursuant to the DOE Act,
responsibility for the power marketing
functions of Reclamation, including the
construction, operation, and
maintenance of substations,
transmission lines, and attendant
facilities, was transferred to the DOE.
The responsibility for operation and
maintenance of the dams and
powerplants remains with Reclamation.
Parker Dam, which created Lake
Havasu 155 miles below Hoover Dam on
the Colorado River, was authorized by
the Rivers and Harbors Act of August
30, 1935. Construction of Parker Dam
began in 1934 and was completed in
1942. Reclamation constructed the
project partly with funds advanced by
the MWD. MWD receives half of the
capacity and energy from the four
generating units at Parker Dam.
Davis Dam, which created Lake
Mohave 67 miles below Hoover Dam on
the Colorado River, was authorized
under the Reclamation Project Act of
1939. Construction began in 1941, but
due to construction delays caused by
World War II, it was not completed until
1953. Davis Dam has five generating
units.
Power generated from the P–DP is
marketed to customers in Arizona,
Nevada, and California. Excluding
project use, the marketing period
effective FY 2009 provides for 198,337
kW of capacity in the winter season and
259,206 kW of capacity in the summer
season. Customers receive 1,703 kWh
per kW in the winter season and 3,441
kWh per kW in the summer season.
The P–DP transmission system
includes 48 substations and over 1,500
circuit miles of transmission lines in
Arizona, southern Nevada, and along
the Colorado River in California.
Power Repayment Study
Western prepares a PRS each FY to
determine if revenues will be sufficient
to repay, within the required time, all
costs assigned to the P–DP. Repayment
criteria are based on law, policies,
including DOE Order RA 6120.2, and
authorizing legislation.
The provisional formula rates under
Rate Schedules, PD–F7, PD–FT–7, and
PD–FCT7 are equal to the existing rates.
The provisional firm electric service
capacity rate under Rate Schedule PD–
F7 is $17.45 per kWyear. The
provisional firm electric service energy
rate under Rate Schedule PD–F7 is 3.32
mills per kWh. The provisional firm
point-to-point transmission service rate
under Rate Schedule PD–FT7 is $12.96
per kWyear. The provisional firm
transmission service rate for
transmission of SLCA/IP power under
Rate Schedule PD–FCT7 is $12.96 per
kWyear. Under Rate Schedule PD–
NFT7, the provisional rate for nonfirm
transmission service will result in a rate
decrease of 40 percent when compared
to the existing rate. The existing rate for
nonfirm transmission service under Rate
Schedule PD–NFT6 is 2.47 mills per
kWh. The provisional rate for nonfirm
transmission service under Rate
Schedule PD–NFT7 is 1.48 mills per
kWh.
Existing and Provisional Rates
A comparison of the existing and
provisional firm electric and
transmission service rates follows:
PARKER-DAVIS PROJECT COMPARISON OF EXISTING AND PROVISIONAL RATES
Service
Existing rates
Firm Electric Service—Capacity ($/kWyear) ...............................................................................
Firm Electric Service—Energy (mills/kWh) ..................................................................................
Firm Point-to-Point Transmission ($/kWyear) .............................................................................
Firm Transmission of SLCA/IP Power ($/kWyear) ......................................................................
Nonfirm Transmission (mills/kWh) ...............................................................................................
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Certification of Rates
Western’s Administrator certified that
the provisional rates for P–DP firm
electric and transmission service are the
lowest possible rates consistent with
sound business principles. The
provisional rates were developed
following administrative policies and
applicable laws.
Firm Electric and Transmission Service
Formula Rates Discussion
According to Reclamation Law,
Western must establish power and
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transmission rates sufficient to recover
operation, maintenance, purchased
power expenses, interest expenses, and
repayment of power investment and
irrigation aid.
Formula rates for P–DP firm electric
and transmission service are calculated
annually. Under the rate methodology,
costs that are readily identifiable as
supporting either generation or
transmission functions are directly
allocated to generation or transmission
revenue requirements. All other costs
are apportioned between generation and
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$17.45
3.32
$12.96
$12.96
2.47
Provisional
rates
(effective
10/01/08)
$17.45
3.32
$12.96
$12.96
1.48
Change
0%
0%
0%
0%
(40%)
transmission revenue requirements
based on cost allocation factors. Existing
cost allocation factors include SCADA,
CME, percentage allocation of Western
O&M, labor hours devoted to billing,
and historic project investment.
Western will modify the existing rate
methodology by eliminating the CME,
labor hours devoted to billing, and
historic project investment cost
allocation factors. Western will
implement a new cost allocation factor
that is the ratio of the number of
customers receiving firm electric or
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transmission service to the total number
of customers. A comparison of the
affected cost allocation factors follows:
PARKER-DAVIS PROJECT COMPARISON OF COST ALLOCATION FACTORS
Cost
Existing factor
Systemwide (Billing and Finance) ......................
Operations/Dispatch ...........................................
CME ....................................................................
Western Principal & Interest ...............................
Billing Hours .....................................................
SCADA/Billing Hours .......................................
CME Calculation ..............................................
Historic Investment ..........................................
Western prepared a detailed impact
analysis that determined, over the last
seven years, the cost allocation factor
changes would have resulted in an
average annual change to either the
transmission or generation revenue
requirements of approximately $388,000
or 0.96%. At this time, the firm electric
service and firm transmission service
rates resulting from the modifications to
the rate methodology are equal to
existing rates and will provide sufficient
revenue to recover generation and
transmission revenue requirements. The
nonfirm transmission rate is being
decreased due to a change in the rate
formula, and as a result, it will not
exceed the firm point-to-point
transmission rate. The change in the
nonfirm transmission rate is
Proposed factor
independent of the changes to the cost
allocation factors.
During informal discussions prior to
the commencement of the rate
adjustment process, Western received a
request from customers to modify the
billing practices for P–DP long-term firm
transmission service. In the request, the
customers noted that payments for firm
electric service are required one month
in advance of service and suggested that
all parties be subject to the same billing
terms and conditions.
Existing billing practices for P–DP
long-term firm transmission service
allow customers to pay after the fact,
usually one month after service is
provided. Additionally, the P–DP rate
calculations assume the full and timely
collection of revenues. To the extent
that customer payments are late or
Ratio of Customers.
SCADA.
Percentage Allocation of Western O&M.
None (Allocated to Transmission Only).
uncollectible, rates may be insufficient
to recover revenue requirements. This
could result in a rate increase, adversely
affecting all P–DP customers. In
response to the customers’ request,
Western will modify the billing
practices so that customers will be
required to pay for P–DP long-term firm
transmission service one month in
advance of service. This requirement is
incorporated into Rate Schedules PD–
FT7 and PD–FCT7.
Statement of Revenue and Related
Expenses
The following table provides a
summary of projected revenue and
expense data for the firm electric and
transmission services formula rates
through the 5-year provisional rate
approval period.
PARKER-DAVIS PROJECT COMPARISON OF 5-YEAR RATE PERIOD (FY 2009–FY 2013) TOTAL REVENUES AND EXPENSES
Existing rates
($000)
Provisional
rates
($000)
Difference
($000)
Total Revenues 1 .........................................................................................................................
Revenue Distribution
Expenses:
O&M ......................................................................................................................................
Purchased Power and Wheeling ..........................................................................................
Interest ..................................................................................................................................
Other .....................................................................................................................................
$295,256
$295,256
$0
161,701
21,043
86,266
7,282
161,701
21,043
86,266
7,282
0
0
0
0
Total Expenses ..............................................................................................................
Principal Payments:
Capitalized Expenses ...........................................................................................................
Original Project and Additions ..............................................................................................
Replacements .......................................................................................................................
Irrigation ................................................................................................................................
276,292
276,292
0
0
110
18,804
50
0
110
18,804
50
0
0
0
0
Total Principal Payments ..............................................................................................
18,964
18,964
0
Total Revenue Distribution ............................................................................................
295,256
295,256
0
1 Total
revenues include approximately $41,625,000 of available revenues from prior periods.
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Basis for Rate Development
The existing formula rates for P–DP
firm electric and transmission service
under Rate Schedules PD–F6, PD–FT6,
PD–FCT6, and PD–NFT6 expire
September 30, 2008. The provisional
formula rates will provide sufficient
revenue to pay all annual costs,
including interest expense, and
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repayment of power investment and
irrigation aid within the allowable
periods. The provisional formula rates
will take effect on October 1, 2008, to
correspond with the start of the Federal
fiscal year, and will remain in effect
through September 30, 2013.
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Comments
The comments and responses
regarding the firm electric and
transmission service rates, paraphrased
for brevity when not affecting the
meaning of the statement(s), are
discussed below.
A. Comment: An interested party
made a statement with regard to Senate
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Bill S.2739. Section 513 of that bill
contains post-September 11, 2001,
security cost legislation which specifies
the amount of security costs which will
be considered non-reimbursable. The
Interested Party requested that Western
and Reclamation adjust their budgets to
account for the legislation.
Response: Senate Bill S.2739 was
signed into law on May 8, 2008.
Reclamation is in the process of
determining which costs in these rate
calculations will be deemed nonreimbursable under the new law. Any
security costs ultimately deemed nonreimbursable will be carried into the
next fiscal year, reducing FY 2010
revenue requirements.
B. Comment: An interested party
sought assurance that the firm electric
and transmission service formula rates
will include hydrologic data to be
collected by Reclamation in July of
2008.
Response: Generation and purchase
power forecasts used in the firm electric
and transmission service formula rates
are based on the most recent Annual
Operating Plan (AOP) produced by
Western and presented to the customers.
The FY 2009 AOP, used to calculate the
rates, was based on hydrologic data
released by Reclamation on April 7,
2008. Additional revenues or expenses
resulting from changes in hydrology
will be included in the annual rate
calculation for the subsequent year.
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 rates, is
available for public review in the Desert
Southwest Regional Office, Western
Area Power Administration, 615 South
43rd Avenue, Phoenix, Arizona.
Ratemaking Procedure Requirements
Determination Under Executive Order
12866
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Western has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Submission to the Federal Energy
Regulatory Commission
The interim formula rates herein
confirmed, approved, and placed into
effect, together with supporting
documents, will be submitted to FERC
for confirmation and final approval.
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Order
Rate Schedule PD–F7 (Supersedes
Schedule PD–F6).
percent of the annual generation
revenue requirement divided by the
estimated total generation delivery
commitments, rounded to two decimal
places.
Transmission Charge: Each firm
electric service customer shall be billed
monthly a transmission charge. This
charge is equal to the customer’s
contractual reservation multiplied by
the rate calculated in accordance with
PD–FT7, rounded to the penny.
Lower Basin Development Fund
Contribution Charge: The contribution
charge is 4.5 mills/kWh for each kWh
measured or scheduled to an Arizona
purchaser and 2.5 mills/kWh for each
kWh measured or scheduled to a
California or Nevada purchaser.
United States Department of Energy
Billing of Excess Energy
In view of the above and under the
authority delegated to me, I confirm and
approve on an interim basis, effective
October 1, 2008, Rate Schedules PD–F7,
PD–FT7, PD–FCT7, and PD–NFT7 for
the Parker-Davis Project of the Western
Area Power Administration. The rate
schedules shall remain in effect on an
interim basis, pending FERC’s
confirmation and approval of them or
substitute rates on a final basis through
September 30, 2013.
Dated: September 12, 2008.
Jeffery F. Kupfer,
Acting Deputy Secretary.
Western Area Power Administration
Parker-Davis Project; Schedule of Rates
for Firm Electric Service
Effective
The first day of the first full billing
period beginning on or after October 1,
2008, through September 30, 2013, or
until superseded, whichever occurs
earlier.
Available
In the area served by the Parker-Davis
Project (P–DP).
Applicable
To firm electric service customers for
firm power service supplied through
one meter at one point of delivery,
unless otherwise provided by service
agreement or contract.
For each month in which there is
excess energy available, offered, and
delivered to the firm electric service
customer, such excess energy shall be
billed at the Energy Rate.
Billing for Unauthorized Overruns
For each month in which there is a
contract violation involving an
unauthorized overrun of energy and/or
capacity, such overruns shall be billed
at 10 times the Energy and/or Capacity
Rate in this rate schedule. For each
month in which there is a contract
violation involving an unauthorized
overrun of transmission, such overrun
shall be billed at two times the
Transmission Charge in this rate
schedule.
Transformer Losses
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points of delivery
established by service agreement or
contract.
If delivery is made at transmission
voltage but metered on the low-voltage
side of the substation, the meter
readings will be increased to
compensate for transformer losses as
provided for in the contract.
Charges
Power Factor
Energy Charge: Each firm electric
service customer shall be billed monthly
an energy charge. This charge is equal
to the customer’s monthly contractual
energy reservation multiplied by the
Energy Rate, rounded to the penny. The
Energy Rate shall be equal to 50 percent
of the annual generation revenue
requirement divided by the estimated
total generation delivery commitments,
rounded to two decimal places.
Capacity Charge: Each firm electric
service customer shall be billed monthly
a capacity charge. This charge is equal
to the customer’s monthly contractual
capacity reservation multiplied by the
Capacity Rate, rounded to the penny.
The Capacity Rate shall be equal to 50
The firm electric service customer
will normally be required to maintain a
power factor at all points of
measurement between 95-percent
lagging and 95-percent leading.
Rate Schedule PD–FT7 (Supersedes
Schedule PD–FT6).
Character and Conditions of Service
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United States Department of Energy
Western Area Power Administration
Parker-Davis Project; Schedule of Rates
for Firm Point-to-Point Transmission
Service
Effective
The first day of the first full billing
period beginning on or after October 1,
2008, through September 30, 2013, or
E:\FR\FM\22SEN1.SGM
22SEN1
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
transfers may be mutually agreed upon
by the customer and Western or their
authorized representatives.
until superseded, whichever occurs
earlier.
Available
In the area served by the Parker-Davis
Project (P–DP).
Applicable
To firm point-to-point transmission
service customers where capacity and
energy are supplied to the P–DP system
at points of interconnection with other
systems and transmitted and delivered,
less losses, to points of delivery on the
P–DP system.
Character and Conditions of Service
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points of delivery
established by service agreement or
contract.
Long-Term Rate
For transmission service one year or
longer, the annual rate for each kilowatt
per year is equal to the annual
transmission revenue requirement
divided by the estimated transmission
delivery commitments, rounded to the
nearest 12 cent increment. The annual
rate for long-term service is payable
monthly at a rate for each kilowatt per
month equal to the annual rate for longterm service divided by 12.
Short-Term Rates
For transmission service up to one
year, the maximum rate for each kW is
as follows:
Monthly: Equal to the annual longterm rate, divided by 12 and rounded to
two decimal places.
Weekly: Equal to the annual long term
rate, divided by 52 and rounded to two
decimal places.
Daily: Equal to the annual long term
rate, divided by 365 and rounded to two
decimal places.
Hourly: Equal to the annual long term
rate, divided by 8,760 and rounded to
five decimal places.
Discounts may be offered from time to
time in accordance with Western’s Open
Access Transmission Tariff.
sroberts on PROD1PC70 with NOTICES
Billing
Western will bill firm point-to-point
transmission service customers monthly
by applying the rates under this rate
schedule to the amount of capacity
reserved. Payment for service will be
required one month in advance of
service.
Adjustments for Reactive Power
There shall be no entitlement to
transfer of reactive kilovolt-amperes at
delivery points, except when such
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Adjustments for Losses
Capacity and energy losses incurred
in connection with the transmission and
delivery of capacity and energy under
this rate schedule shall be supplied by
the customer in accordance with the
service agreement or contract.
Overrun of Capacity Reserved
Western will assess a charge for
unauthorized use of transmission
service at a rate equal to two times the
applicable rate for the service at issue.
The charge will be applied to use in
excess of the reservation amount, which
shall be the difference between the
amount of transmission service actually
used by the customer less the amount of
transmission service the customer has
reserved. The customer will incur the
charge for an overrun during the
calendar month or for the period of
transmission service if such service is
for a term of less than one month.
Rate Schedule PD–FCT7 (Supersedes
Schedule PD–FCT6).
United States Department of Energy
Western Area Power Administration
Parker-Davis Project; Schedule of Rate
for Firm Transmission Service of Salt
Lake City Area/Integrated Projects
Power
Effective
The first day of the first full billing
period beginning on or after October 1,
2008, through September 30, 2013, or
until superseded, whichever occurs
earlier.
Available
In the area served by the Parker-Davis
Project (P–DP).
Applicable
To Salt Lake City Area/Integrated
Projects (SLCA/IP) southern division
customers, where SLCA/IP capacity and
energy are supplied to the P–DP system
by the Colorado River Storage Project
(CRSP) at points of interconnection with
the CRSP system and transmitted and
delivered on a uni-directional basis, less
losses, to southern division customers at
points of delivery on the P–DP system.
Character and Conditions of Service
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points of delivery
established by service agreement or
contract.
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Sfmt 4703
54593
Rate
The annual rate for each kilowatt per
year is equal to the annual transmission
revenue requirement divided by the
estimated transmission delivery
commitments, rounded to the nearest 12
cent increment. The annual rate is
payable monthly at a rate for each
kilowatt per month equal to the annual
rate divided by 12.
Billing
Western will bill firm transmission
service customers monthly by applying
the rates under this rate schedule to the
amount of capacity reserved. Payment
for service will be required one month
in advance of said service.
Adjustments for Reactive Power
There shall be no entitlement to
transfer of reactive kilovolt-amperes at
delivery points, except when such
transfers may be mutually agreed upon
by the customer and Western or their
authorized representatives.
Adjustments for Losses
Capacity and energy losses incurred
in connection with the transmission and
delivery of capacity and energy under
this rate schedule shall be supplied by
the customer in accordance with the
service agreement or contract.
Overrun of Capacity Reserved
Western will asses a charge for
unauthorized use of transmission
service at a rate equal to two times the
applicable rate for the service at issue.
The charge will be applied to use in
excess of the reservation amount, which
shall be the difference between the
amount of transmission service actually
used by the customer less the amount of
transmission service the customer has
reserved. The customer will incur the
charge for an overrun during the
calendar month or for the period of
transmission service if such service is
for a term of less than one month.
Rate Schedule PD–NFT7 (Supersedes
Schedule PD–NFT6).
United States Department of Energy
Western Area Power Administration
Parker-Davis Project; Schedule of Rate
for Nonfirm Transmission Service
Effective
The first day of the first full billing
period beginning on or after October 1,
2008, through September 30, 2013, or
until superseded, whichever occurs
earlier.
Available
In the area served by the Parker-Davis
Project (P–DP).
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Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
Applicable
To nonfirm transmission service
customers where capacity and energy
are supplied to the P–DP system at
points of interconnection with other
systems and transmitted and delivered,
less losses, to points of delivery on the
P–DP system.
Character and Conditions of Service
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points of delivery
established by service agreement or
contract.
Rate
The nonfirm transmission service rate
for each kilowatt per hour is equal to the
annual transmission revenue
requirement divided by the estimated
transmission delivery commitments,
divided by 8,760 and rounded to five
decimal places. Discounts may be
offered from time to time in accordance
with Western’s Open Access
Transmission Tariff.
Billing
Western will bill nonfirm
transmission customers monthly by
applying the nonfirm rate under this
rate schedule to the amount of capacity
reserved.
Adjustments for Reactive Power
There shall be no entitlement to
transfer of reactive kilovolt-amperes at
delivery points, except when such
transfers may be mutually agreed upon
by the customer and Western or their
authorized representatives.
Adjustments for Losses
Capacity and energy losses incurred
in connection with the transmission and
delivery of capacity and energy under
this rate schedule shall be supplied by
the customer in accordance with the
service agreement or contract.
[FR Doc. E8–22096 Filed 9–19–08; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
sroberts on PROD1PC70 with NOTICES
[EPA–HQ–OPP–2008–0143; FRL–8381–1]
The Association of American Pesticide
Control Officials/State FIFRA Issues
Research and Evaluation Group
(SFIREG) Working Committee on
Pesticide Operations and
Management; Notice of Public Meeting
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
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19:11 Sep 19, 2008
Jkt 214001
SUMMARY: The Association of American
Pesticide Control Officials (AAPCO)/
State FIFRA Issues Research and
Evaluation Group (SFIREG) Working
Committee on Pesticide Operations and
Management (WC/POM) will hold a 2–
day meeting, beginning on October 6-7,
2008 and ending October 7, 2008. This
notice announces the location and times
for the meeting and sets forth the
tentative agenda topics.
DATES: The meeting will be held on
Monday, October 6, 2008 from 8:30 a.m.
to 5 p.m. and 8:30 a.m. to 12 noon on
Tuesday, October 7, 2008.
To request accommodation of a
disability, please contact the person
listed under FOR FURTHER INFORMATON
CONTACT, preferably at least 10 days
prior to the meeting, to give EPA as
much time as possible to process your
request.
ADDRESSES: The meeting will be held at
The Grove Hotel, 245 South Capitol
Blvd., Boise, Idaho.
FOR FURTHER INFORMATION CONTACT: Jim
Roelofs, Field and External Affairs
Division, (7506P), Office of Pesticide
Programs, Environmental Protection
Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460–0001; telephone
number: (703) 308–2964; fax number:
(703) 308–1850; e-mail address:
roelofs.jim@epa.gov or Grier Stayton,
SFIREG Executive Secretary, P.O. Box
466, Milford, DE 19963; telephone
number: (302) 422–8152; fax (302) 422–
2435; e-mail address: aapcosfireg@comcast.net.
SUPPLEMENTARY INFORMATION:
I. General Information
A. Does this Action Apply to Me?
You may be potentially affected by
this action if you are interested in
SFIREG information exchange
relationship with EPA regarding
important issues related to human
health, environmental exposure to
pesticides, and insight into EPA’s
decision-making process are invited and
encouraged to attend the meetings and
participate as appropriate. Potentially
affected entities may include, but are
not limited to, those persons who are or
may be required to conduct testing of
chemical substances under the Federal
Food, Drug and Cosmetic Act (FFDCA),
or the Federal Insecticide, Fungicide,
and Rodenticide Act (FIFRA).
B. How Can I Get Copies of this
Document and Other Related
Information?
1. Docket. EPA has established a
docket for this action under docket ID
number EPA–HQ–OPP–2008–0143.
PO 00000
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Fmt 4703
Sfmt 4703
Publicly available docket materials are
available either in the electronic docket
at https://www.regulations.gov, or, if only
available in hard copy, at the Office of
Pesticide Programs (OPP) Regulatory
Public Docket in Rm. S–4400, One
Potomac Yard (South Bldg.), 2777 S.
Crystal Dr., Arlington, VA. The hours of
operation of this Docket Facility are
from 8:30 a.m. to 4 p.m., Monday
through Friday, excluding legal
holidays. The Docket Facility telephone
number is (703) 305–5805.
2. Electronic access. You may access
this Federal Register document
electronically through the EPA Internet
under the ‘‘Federal Register’’ listings at
https://www.epa.gov/fedrgstr.
II. Background
1. Discussion on risk mitigation
measures for soil fumigants.
2. Follow up report on updated spray
drift language for agricultural
pyrethroids.
3. State concerns with proposed
labeling changes for picloram.
4. Refining a system for SFIREG/POM
review of proposed pesticide labeling.
5. Improving groundwater advisory
statements on pesticide labels.
6. Developing acceptable, boiler plate
language to replace ‘‘For Use By’’
statements.
7. Risk of eye injury from certain 2,4D products.
8. Food safety issues following
pesticide misuse.
9. EPA Update/Briefing.
a. Office of Pesticide Programs
Update.
b. Office of Enforcement
Compliance Assurance Update.
10. POM Working Committee
Workgroups Issue Papers/Updates.
List of Subjects
Environmental protection,
Dated: September 4, 2008.
William R. Diamond,
Director, Field and External Affairs Division,
Office of Pesticide Programs
[FR Doc. E8–22077 Filed 9–19–08; 8:45 am]
BILLING CODE 6560–50–S
FEDERAL COMMUNICATIONS
COMMISSION
Public Information Collections
Approved by Office of Management
and Budget
September 8, 2008.
SUMMARY: The Federal Communications
Commission (FCC) has received Office
of Management and Budget (OMB)
E:\FR\FM\22SEN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 184 (Monday, September 22, 2008)]
[Notices]
[Pages 54588-54594]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22096]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Parker-Davis Project-Rate Order No. WAPA-138
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Order Concerning Firm Electric and Transmission
Service Formula Rates.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-138 and Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-
NFT7 placing firm electric and transmission service formula rates for
the Parker-Davis Project (P-DP) of the Western Area Power
Administration (Western) into effect on an interim basis. The
provisional rates will be in effect until the Federal Energy Regulatory
Commission (FERC) confirms, approves, and places them into effect on a
final basis or until they are replaced by other rates. The provisional
formula rates will provide sufficient revenue to pay all annual costs,
including interest expense, and repayment of investment, within the
allowable periods.
DATES: Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 will be
placed into effect on an interim basis on the first day of the first
full billing period beginning on or after October 1, 2008, and will be
in effect until FERC confirms, approves, and places the rate schedules
in effect on a final basis through September 30, 2013, or until the
rate schedule is superseded.
FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Regional
Manager, Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2453,
carlson@wapa.gov, or Mr. Jack Murray, Rates Manager, Desert Southwest
Customer Service Region, Western Area Power Administration, P.O. Box
6457, Phoenix, AZ 85005-6457, (602) 605-2442, jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: Rate Schedules PD-F6, PD-FT6, PD-FCT6, and
PD-NFT6 were approved under Rate Order No. WAPA-75 for the period
beginning November 1, 1997, and ending September 30, 2002.\1\ These
rate schedules were extended through September 30, 2004, by the
approval of Rate Order No. WAPA-98 on September 13, 2002.\2\ These rate
schedules were extended again through September 30, 2006, by the
approval of Rate Order No. WAPA-113 approved on September 2, 2004.\3\
These rate schedules were extended again through September 30, 2008, by
Rate Order No. WAPA-131 approved on September 22, 2006.\4\
---------------------------------------------------------------------------
\1\ WAPA-75 was approved by the Deputy Secretary of Energy on
November 18, 1997 (62 FR 63150), and confirmed and approved by FERC
on a final basis on March 10, 1998, in Docket No. EF98-5041-000 (82
FERC 62164).
\2\ WAPA-98 was approved by the Secretary of Energy on September
13, 2002 (67 FR 60655), filed with FERC for informational purposes
only, and docketed by FERC on September 24, 2002, in Docket No.
EF02-5041-000.
\3\ WAPA-113 was approved by the Deputy Secretary of Energy on
September 2, 2004 (69 FR 55429), filed with FERC for informational
purposes only, and docketed by FERC on September 3, 2004, in Docket
No. EF04-5042-000.
\4\ WAPA-131 was approved by the Deputy Secretary of Energy on
September 22, 2006 (71 FR 57941), and filed with FERC for
informational purposes only, and docketed by FERC on September 22,
2006, in Docket No. EF06-5042-000.
---------------------------------------------------------------------------
Rate Schedule PD-F6 for firm electric service is being superseded
by Rate Schedule PD-F7. Under Rate Schedule PD-F7, the capacity rate is
$17.45 per kilowattyear (kWyear), and the energy rate is 3.32 mills per
kilowatthour (mills/kWh). The provisional rates in Rate Schedule PD-F7
equal the existing rates under Rate Schedule PD-F6.
Rate Schedules PD-FT6 and PD-FCT6 for firm point-to-point
transmission service and firm transmission of Salt Lake City Area/
Integrated Projects power are being superseded by Rate Schedules PD-FT7
and PD-FCT7. The provisional transmission rates under Rate Schedules
PD-FT7 and PD-FCT7 are $12.96/kWyear, which is equal to the existing
rates under Rate Schedules PD-FT6 and PD-FCT6.
Rate Schedule PD-NFT6 for nonfirm transmission service is being
superseded by Rate Schedule PD-NFT7. Under Rate Schedule PD-NFT6, the
existing nonfirm transmission rate is 2.47 mills/kWh. The provisional
nonfirm transmission rate under Rate Schedule PD-NFT7 is 1.48 mills/
kWh. A change to the existing formula for calculating the nonfirm
transmission rate resulted in a 40 percent decrease when compared to
the existing rate. The modification to the nonfirm transmission rate
formula ensures that the nonfirm transmission rate will not exceed the
firm transmission rate.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator; (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand or to
disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985.
Under Delegation Order Nos. 00-037.00 and 00-001.00C, 10 CFR part
903, and 18 CFR part 300, I hereby confirm, approve, and place Rate
Order No. WAPA-138, the proposed P-DP firm electric and transmission
service formula rates, into effect on an interim basis. The new Rate
Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 will be promptly
submitted to FERC for confirmation and approval on a final basis.
[[Page 54589]]
Dated: September 12, 2008.
Jeffery F. Kupfer,
Acting Deputy Secretary.
Department of Energy
Deputy Secretary
Rate Order No. WAPA-138.
In the matter of: Western Area Power Administration Rate Adjustment for
the Parker-Davis Project Firm Electric and Transmission Service Formula
Rates: Order Confirming, Approving, and Placing the Parker-Davis
Project Firm Electric and Transmission Service Formula Rates Into
Effect on an Interim Basis
These rates were 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
and the Bureau of Reclamation under the Reclamation Act of 1902 (ch.
1093, 32 Stat. 388), as amended and supplemented by subsequent laws,
particularly section 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other Acts that specifically apply to the project
involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator; (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand or to
disapprove such rates to the Federal Energy Regulatory Commission
(FERC). Existing DOE procedures for public participation in power rate
adjustments (10 CFR part 903) were published on September 18, 1985.
Acronyms and Definitions
As used in this Rate Order, the following acronyms and definitions
apply:
Administrator: The Administrator of the Western Area Power
Administration.
Capacity: The electric capability of a generator, transformer,
transmission circuit, or other equipment. It is expressed in kilowatts.
Capacity Rate: The rate which sets forth the charges for capacity. It
is expressed in dollars per killowattyear and applied to each kW of
reservation.
CME: Capitalized Moveable Equipment.
Customer: An entity with a contract that is receiving firm electric
service or transmission service from the Parker-Davis Project.
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.
Energy Rate: The rate which sets forth the charges for energy. It is
expressed in mills per kilowatthour and applied to each kilowatthour of
reservation.
FERC: The Federal Energy Regulatory Commission.
Firm: A type of product and/or service guaranteed to be available in
accordance with the terms of the contract.
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 in 1 hour.
kWyear: Kilowattyear--the electrical unit of the yearly amount of
capacity.
Mill: A monetary denomination of the United States that equals one
tenth of a cent or one thousandth of a dollar.
Mills/kWh: Mills per kilowatthour--a unit of charge for energy.
Nonfirm: A type of product and/or service not always available at the
time requested by the Customer.
O&M: Operation and Maintenance.
MWD: The Metropolitan Water District of Southern California.
P-DP: The Parker-Davis Project.
Power: Capacity and energy.
Proposed Rate: A rate that has been recommended by Western to the
Deputy Secretary of the DOE for approval.
Provisional Rate: A rate which has been confirmed, approved, and placed
into effect on an interim basis by the Deputy Secretary of the DOE.
PRS: Power Repayment Study.
Rate Brochure: A document explaining the rationale and background for
the rate proposal contained in this Rate Order.
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, repayment of Federal investments, and other assigned
costs.
SCADA: Supervisory Control and Data Acquisition.
SLCA/IP: Salt Lake City Area/Integrated Projects--the resources of the
Collbran, Dolores, Rio Grande, and Seedskadee projects blended together
with the CRSP to create the SLCA/IP.
Supporting Documentation: A compilation of data and documents that
support the Rate Brochure and the rate proposal.
Western: United States Department of Energy, Western Area Power
Administration.
Effective Date
The new interim formula rates will take effect on the first day of
the first full billing period beginning on or after October 1, 2008,
and will remain in effect until September 30, 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 formula rates. The proposed action constituted a minor
rate adjustment as defined by 10 CFR part 903.2. As such, Western
determined that it was not necessary to hold public information or
comment forums. The steps Western took to involve interested parties in
the rate process were:
1. On October 11, 2007, Western's Desert Southwest Region mailed a
notice announcing an informal meeting to the P-DP customers and
interested parties. The informal meeting was held November 14, 2007, in
Phoenix, Arizona. At this informal meeting, Western explained the
rationale for the rate adjustment, presented options for the proposed
formula rates, and answered questions.
2. On December 14, 2007, Western's Desert Southwest Region e-mailed
the P-DP customers and interested parties to provide the Web site
address to obtain the supplemental information that was requested by
the customers at the informal meeting held November 14, 2007.
3. On February 1, 2008, Western's Desert Southwest Region mailed a
notice announcing a second informal meeting to the P-DP customers and
interested parties. The second informal meeting was held March 12,
2008, in Phoenix, Arizona. At this informal meeting, Western explained
the minor rate adjustment process and presented proposed formula rates
that included
[[Page 54590]]
customer input from the informal meeting held November 14, 2008.
4. An FRN published on April 29, 2008 (73 FR 23248), announced the
proposed formula rates. This notice began a public consultation and
comment period.
5. On May 1, 2008, Western's Desert Southwest Region e-mailed the
FRN (73 FR 23248) to the P-DP customers and interested parties and
provided the Web site address to obtain a copy of the Rate Brochure and
supporting documentation.
6. Western received one comment letter during the consultation and
comment period, which ended on May 29, 2008. All formally submitted
comments have been considered in preparing this Rate Order.
Comments
Written comments were received from the Irrigation & Electrical
Districts Association of Arizona.
Project Description
The P-DP was formed by consolidating two projects, Parker Dam and
Davis Dam, under the terms of the Act of May 28, 1954. All facilities
of the P-DP were operated and maintained by Reclamation until the
formation of the Department of Energy pursuant to the Department of
Energy Organization Act (DOE Act). Pursuant to the DOE Act,
responsibility for the power marketing functions of Reclamation,
including the construction, operation, and maintenance of substations,
transmission lines, and attendant facilities, was transferred to the
DOE. The responsibility for operation and maintenance of the dams and
powerplants remains with Reclamation.
Parker Dam, which created Lake Havasu 155 miles below Hoover Dam on
the Colorado River, was authorized by the Rivers and Harbors Act of
August 30, 1935. Construction of Parker Dam began in 1934 and was
completed in 1942. Reclamation constructed the project partly with
funds advanced by the MWD. MWD receives half of the capacity and energy
from the four generating units at Parker Dam.
Davis Dam, which created Lake Mohave 67 miles below Hoover Dam on
the Colorado River, was authorized under the Reclamation Project Act of
1939. Construction began in 1941, but due to construction delays caused
by World War II, it was not completed until 1953. Davis Dam has five
generating units.
Power generated from the P-DP is marketed to customers in Arizona,
Nevada, and California. Excluding project use, the marketing period
effective FY 2009 provides for 198,337 kW of capacity in the winter
season and 259,206 kW of capacity in the summer season. Customers
receive 1,703 kWh per kW in the winter season and 3,441 kWh per kW in
the summer season.
The P-DP transmission system includes 48 substations and over 1,500
circuit miles of transmission lines in Arizona, southern Nevada, and
along the Colorado River in California.
Power Repayment Study
Western prepares a PRS each FY to determine if revenues will be
sufficient to repay, within the required time, all costs assigned to
the P-DP. Repayment criteria are based on law, policies, including DOE
Order RA 6120.2, and authorizing legislation.
The provisional formula rates under Rate Schedules, PD-F7, PD-FT-7,
and PD-FCT7 are equal to the existing rates. The provisional firm
electric service capacity rate under Rate Schedule PD-F7 is $17.45 per
kWyear. The provisional firm electric service energy rate under Rate
Schedule PD-F7 is 3.32 mills per kWh. The provisional firm point-to-
point transmission service rate under Rate Schedule PD-FT7 is $12.96
per kWyear. The provisional firm transmission service rate for
transmission of SLCA/IP power under Rate Schedule PD-FCT7 is $12.96 per
kWyear. Under Rate Schedule PD-NFT7, the provisional rate for nonfirm
transmission service will result in a rate decrease of 40 percent when
compared to the existing rate. The existing rate for nonfirm
transmission service under Rate Schedule PD-NFT6 is 2.47 mills per kWh.
The provisional rate for nonfirm transmission service under Rate
Schedule PD-NFT7 is 1.48 mills per kWh.
Existing and Provisional Rates
A comparison of the existing and provisional firm electric and
transmission service rates follows:
Parker-Davis Project Comparison of Existing and Provisional Rates
----------------------------------------------------------------------------------------------------------------
Provisional
rates
Service Existing rates (effective 10/ Change
01/08)
----------------------------------------------------------------------------------------------------------------
Firm Electric Service--Capacity ($/kWyear)...................... $17.45 $17.45 0%
Firm Electric Service--Energy (mills/kWh)....................... 3.32 3.32 0%
Firm Point-to-Point Transmission ($/kWyear)..................... $12.96 $12.96 0%
Firm Transmission of SLCA/IP Power ($/kWyear)................... $12.96 $12.96 0%
Nonfirm Transmission (mills/kWh)................................ 2.47 1.48 (40%)
----------------------------------------------------------------------------------------------------------------
Certification of Rates
Western's Administrator certified that the provisional rates for P-
DP firm electric and transmission service are the lowest possible rates
consistent with sound business principles. The provisional rates were
developed following administrative policies and applicable laws.
Firm Electric and Transmission Service Formula Rates Discussion
According to Reclamation Law, Western must establish power and
transmission rates sufficient to recover operation, maintenance,
purchased power expenses, interest expenses, and repayment of power
investment and irrigation aid.
Formula rates for P-DP firm electric and transmission service are
calculated annually. Under the rate methodology, costs that are readily
identifiable as supporting either generation or transmission functions
are directly allocated to generation or transmission revenue
requirements. All other costs are apportioned between generation and
transmission revenue requirements based on cost allocation factors.
Existing cost allocation factors include SCADA, CME, percentage
allocation of Western O&M, labor hours devoted to billing, and historic
project investment.
Western will modify the existing rate methodology by eliminating
the CME, labor hours devoted to billing, and historic project
investment cost allocation factors. Western will implement a new cost
allocation factor that is the ratio of the number of customers
receiving firm electric or
[[Page 54591]]
transmission service to the total number of customers. A comparison of
the affected cost allocation factors follows:
Parker-Davis Project Comparison of Cost Allocation Factors
------------------------------------------------------------------------
Cost Existing factor Proposed factor
------------------------------------------------------------------------
Systemwide (Billing and Billing Hours....... Ratio of Customers.
Finance).
Operations/Dispatch......... SCADA/Billing Hours. SCADA.
CME......................... CME Calculation..... Percentage
Allocation of
Western O&M.
Western Principal & Interest Historic Investment. None (Allocated to
Transmission Only).
------------------------------------------------------------------------
Western prepared a detailed impact analysis that determined, over
the last seven years, the cost allocation factor changes would have
resulted in an average annual change to either the transmission or
generation revenue requirements of approximately $388,000 or 0.96%. At
this time, the firm electric service and firm transmission service
rates resulting from the modifications to the rate methodology are
equal to existing rates and will provide sufficient revenue to recover
generation and transmission revenue requirements. The nonfirm
transmission rate is being decreased due to a change in the rate
formula, and as a result, it will not exceed the firm point-to-point
transmission rate. The change in the nonfirm transmission rate is
independent of the changes to the cost allocation factors.
During informal discussions prior to the commencement of the rate
adjustment process, Western received a request from customers to modify
the billing practices for P-DP long-term firm transmission service. In
the request, the customers noted that payments for firm electric
service are required one month in advance of service and suggested that
all parties be subject to the same billing terms and conditions.
Existing billing practices for P-DP long-term firm transmission
service allow customers to pay after the fact, usually one month after
service is provided. Additionally, the P-DP rate calculations assume
the full and timely collection of revenues. To the extent that customer
payments are late or uncollectible, rates may be insufficient to
recover revenue requirements. This could result in a rate increase,
adversely affecting all P-DP customers. In response to the customers'
request, Western will modify the billing practices so that customers
will be required to pay for P-DP long-term firm transmission service
one month in advance of service. This requirement is incorporated into
Rate Schedules PD-FT7 and PD-FCT7.
Statement of Revenue and Related Expenses
The following table provides a summary of projected revenue and
expense data for the firm electric and transmission services formula
rates through the 5-year provisional rate approval period.
Parker-Davis Project Comparison of 5-Year Rate Period (FY 2009-FY 2013) Total Revenues and Expenses
----------------------------------------------------------------------------------------------------------------
Existing rates Provisional Difference
($000) rates ($000) ($000)
----------------------------------------------------------------------------------------------------------------
Total Revenues \1\.............................................. $295,256 $295,256 $0
Revenue Distribution
Expenses:
O&M......................................................... 161,701 161,701 0
Purchased Power and Wheeling................................ 21,043 21,043 0
Interest.................................................... 86,266 86,266 0
Other....................................................... 7,282 7,282 0
-----------------------------------------------
Total Expenses.......................................... 276,292 276,292 0
Principal Payments:
Capitalized Expenses........................................ 0 0 0
Original Project and Additions.............................. 110 110 0
Replacements................................................ 18,804 18,804 0
Irrigation.................................................. 50 50 0
-----------------------------------------------
Total Principal Payments................................ 18,964 18,964 0
-----------------------------------------------
Total Revenue Distribution.............................. 295,256 295,256 0
----------------------------------------------------------------------------------------------------------------
\1\ Total revenues include approximately $41,625,000 of available revenues from prior periods.
Basis for Rate Development
The existing formula rates for P-DP firm electric and transmission
service under Rate Schedules PD-F6, PD-FT6, PD-FCT6, and PD-NFT6 expire
September 30, 2008. The provisional formula rates will provide
sufficient revenue to pay all annual costs, including interest expense,
and repayment of power investment and irrigation aid within the
allowable periods. The provisional formula rates will take effect on
October 1, 2008, to correspond with the start of the Federal fiscal
year, and will remain in effect through September 30, 2013.
Comments
The comments and responses regarding the firm electric and
transmission service rates, paraphrased for brevity when not affecting
the meaning of the statement(s), are discussed below.
A. Comment: An interested party made a statement with regard to
Senate
[[Page 54592]]
Bill S.2739. Section 513 of that bill contains post-September 11, 2001,
security cost legislation which specifies the amount of security costs
which will be considered non-reimbursable. The Interested Party
requested that Western and Reclamation adjust their budgets to account
for the legislation.
Response: Senate Bill S.2739 was signed into law on May 8, 2008.
Reclamation is in the process of determining which costs in these rate
calculations will be deemed non-reimbursable under the new law. Any
security costs ultimately deemed non-reimbursable will be carried into
the next fiscal year, reducing FY 2010 revenue requirements.
B. Comment: An interested party sought assurance that the firm
electric and transmission service formula rates will include hydrologic
data to be collected by Reclamation in July of 2008.
Response: Generation and purchase power forecasts used in the firm
electric and transmission service formula rates are based on the most
recent Annual Operating Plan (AOP) produced by Western and presented to
the customers. The FY 2009 AOP, used to calculate the rates, was based
on hydrologic data released by Reclamation on April 7, 2008. Additional
revenues or expenses resulting from changes in hydrology will be
included in the annual rate calculation for the subsequent year.
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 rates, is
available for public review in the Desert Southwest Regional Office,
Western Area Power Administration, 615 South 43rd Avenue, Phoenix,
Arizona.
Ratemaking Procedure Requirements
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Submission to the Federal Energy Regulatory Commission
The interim formula rates herein confirmed, approved, and placed
into effect, together with supporting documents, will be submitted to
FERC for confirmation and final approval.
Order
In view of the above and under the authority delegated to me, I
confirm and approve on an interim basis, effective October 1, 2008,
Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 for the Parker-Davis
Project of the Western Area Power Administration. The rate schedules
shall remain in effect on an interim basis, pending FERC's confirmation
and approval of them or substitute rates on a final basis through
September 30, 2013.
Dated: September 12, 2008.
Jeffery F. Kupfer,
Acting Deputy Secretary.
Rate Schedule PD-F7 (Supersedes Schedule PD-F6).
United States Department of Energy
Western Area Power Administration
Parker-Davis Project; Schedule of Rates for Firm Electric Service
Effective
The first day of the first full billing period beginning on or
after October 1, 2008, through September 30, 2013, or until superseded,
whichever occurs earlier.
Available
In the area served by the Parker-Davis Project (P-DP).
Applicable
To firm electric service customers for firm power service supplied
through one meter at one point of delivery, unless otherwise provided
by service agreement or contract.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by service agreement
or contract.
Charges
Energy Charge: Each firm electric service customer shall be billed
monthly an energy charge. This charge is equal to the customer's
monthly contractual energy reservation multiplied by the Energy Rate,
rounded to the penny. The Energy Rate shall be equal to 50 percent of
the annual generation revenue requirement divided by the estimated
total generation delivery commitments, rounded to two decimal places.
Capacity Charge: Each firm electric service customer shall be
billed monthly a capacity charge. This charge is equal to the
customer's monthly contractual capacity reservation multiplied by the
Capacity Rate, rounded to the penny. The Capacity Rate shall be equal
to 50 percent of the annual generation revenue requirement divided by
the estimated total generation delivery commitments, rounded to two
decimal places.
Transmission Charge: Each firm electric service customer shall be
billed monthly a transmission charge. This charge is equal to the
customer's contractual reservation multiplied by the rate calculated in
accordance with PD-FT7, rounded to the penny.
Lower Basin Development Fund Contribution Charge: The contribution
charge is 4.5 mills/kWh for each kWh measured or scheduled to an
Arizona purchaser and 2.5 mills/kWh for each kWh measured or scheduled
to a California or Nevada purchaser.
Billing of Excess Energy
For each month in which there is excess energy available, offered,
and delivered to the firm electric service customer, such excess energy
shall be billed at the Energy Rate.
Billing for Unauthorized Overruns
For each month in which there is a contract violation involving an
unauthorized overrun of energy and/or capacity, such overruns shall be
billed at 10 times the Energy and/or Capacity Rate in this rate
schedule. For each month in which there is a contract violation
involving an unauthorized overrun of transmission, such overrun shall
be billed at two times the Transmission Charge in this rate schedule.
Transformer Losses
If delivery is made at transmission voltage but metered on the low-
voltage side of the substation, the meter readings will be increased to
compensate for transformer losses as provided for in the contract.
Power Factor
The firm electric service customer will normally be required to
maintain a power factor at all points of measurement between 95-percent
lagging and 95-percent leading.
Rate Schedule PD-FT7 (Supersedes Schedule PD-FT6).
United States Department of Energy
Western Area Power Administration
Parker-Davis Project; Schedule of Rates for Firm Point-to-Point
Transmission Service
Effective
The first day of the first full billing period beginning on or
after October 1, 2008, through September 30, 2013, or
[[Page 54593]]
until superseded, whichever occurs earlier.
Available
In the area served by the Parker-Davis Project (P-DP).
Applicable
To firm point-to-point transmission service customers where
capacity and energy are supplied to the P-DP system at points of
interconnection with other systems and transmitted and delivered, less
losses, to points of delivery on the P-DP system.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by service agreement
or contract.
Long-Term Rate
For transmission service one year or longer, the annual rate for
each kilowatt per year is equal to the annual transmission revenue
requirement divided by the estimated transmission delivery commitments,
rounded to the nearest 12 cent increment. The annual rate for long-term
service is payable monthly at a rate for each kilowatt per month equal
to the annual rate for long-term service divided by 12.
Short-Term Rates
For transmission service up to one year, the maximum rate for each
kW is as follows:
Monthly: Equal to the annual long-term rate, divided by 12 and
rounded to two decimal places.
Weekly: Equal to the annual long term rate, divided by 52 and
rounded to two decimal places.
Daily: Equal to the annual long term rate, divided by 365 and
rounded to two decimal places.
Hourly: Equal to the annual long term rate, divided by 8,760 and
rounded to five decimal places.
Discounts may be offered from time to time in accordance with Western's
Open Access Transmission Tariff.
Billing
Western will bill firm point-to-point transmission service
customers monthly by applying the rates under this rate schedule to the
amount of capacity reserved. Payment for service will be required one
month in advance of service.
Adjustments for Reactive Power
There shall be no entitlement to transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually
agreed upon by the customer and Western or their authorized
representatives.
Adjustments for Losses
Capacity and energy losses incurred in connection with the
transmission and delivery of capacity and energy under this rate
schedule shall be supplied by the customer in accordance with the
service agreement or contract.
Overrun of Capacity Reserved
Western will assess a charge for unauthorized use of transmission
service at a rate equal to two times the applicable rate for the
service at issue. The charge will be applied to use in excess of the
reservation amount, which shall be the difference between the amount of
transmission service actually used by the customer less the amount of
transmission service the customer has reserved. The customer will incur
the charge for an overrun during the calendar month or for the period
of transmission service if such service is for a term of less than one
month.
Rate Schedule PD-FCT7 (Supersedes Schedule PD-FCT6).
United States Department of Energy
Western Area Power Administration
Parker-Davis Project; Schedule of Rate for Firm Transmission Service of
Salt Lake City Area/Integrated Projects Power
Effective
The first day of the first full billing period beginning on or
after October 1, 2008, through September 30, 2013, or until superseded,
whichever occurs earlier.
Available
In the area served by the Parker-Davis Project (P-DP).
Applicable
To Salt Lake City Area/Integrated Projects (SLCA/IP) southern
division customers, where SLCA/IP capacity and energy are supplied to
the P-DP system by the Colorado River Storage Project (CRSP) at points
of interconnection with the CRSP system and transmitted and delivered
on a uni-directional basis, less losses, to southern division customers
at points of delivery on the P-DP system.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by service agreement
or contract.
Rate
The annual rate for each kilowatt per year is equal to the annual
transmission revenue requirement divided by the estimated transmission
delivery commitments, rounded to the nearest 12 cent increment. The
annual rate is payable monthly at a rate for each kilowatt per month
equal to the annual rate divided by 12.
Billing
Western will bill firm transmission service customers monthly by
applying the rates under this rate schedule to the amount of capacity
reserved. Payment for service will be required one month in advance of
said service.
Adjustments for Reactive Power
There shall be no entitlement to transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually
agreed upon by the customer and Western or their authorized
representatives.
Adjustments for Losses
Capacity and energy losses incurred in connection with the
transmission and delivery of capacity and energy under this rate
schedule shall be supplied by the customer in accordance with the
service agreement or contract.
Overrun of Capacity Reserved
Western will asses a charge for unauthorized use of transmission
service at a rate equal to two times the applicable rate for the
service at issue. The charge will be applied to use in excess of the
reservation amount, which shall be the difference between the amount of
transmission service actually used by the customer less the amount of
transmission service the customer has reserved. The customer will incur
the charge for an overrun during the calendar month or for the period
of transmission service if such service is for a term of less than one
month.
Rate Schedule PD-NFT7 (Supersedes Schedule PD-NFT6).
United States Department of Energy
Western Area Power Administration
Parker-Davis Project; Schedule of Rate for Nonfirm Transmission Service
Effective
The first day of the first full billing period beginning on or
after October 1, 2008, through September 30, 2013, or until superseded,
whichever occurs earlier.
Available
In the area served by the Parker-Davis Project (P-DP).
[[Page 54594]]
Applicable
To nonfirm transmission service customers where capacity and energy
are supplied to the P-DP system at points of interconnection with other
systems and transmitted and delivered, less losses, to points of
delivery on the P-DP system.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by service agreement
or contract.
Rate
The nonfirm transmission service rate for each kilowatt per hour is
equal to the annual transmission revenue requirement divided by the
estimated transmission delivery commitments, divided by 8,760 and
rounded to five decimal places. Discounts may be offered from time to
time in accordance with Western's Open Access Transmission Tariff.
Billing
Western will bill nonfirm transmission customers monthly by
applying the nonfirm rate under this rate schedule to the amount of
capacity reserved.
Adjustments for Reactive Power
There shall be no entitlement to transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually
agreed upon by the customer and Western or their authorized
representatives.
Adjustments for Losses
Capacity and energy losses incurred in connection with the
transmission and delivery of capacity and energy under this rate
schedule shall be supplied by the customer in accordance with the
service agreement or contract.
[FR Doc. E8-22096 Filed 9-19-08; 8:45 am]
BILLING CODE 6450-01-P
