Notice of Interim Approval, 54573-54584 [E8-22097]
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a result of the public scoping process.
The environmental issues include:
(1) Atmospheric Resources: Potential
air quality impacts resulting from air
emissions during construction and
operation of the proposed Kemper
County IGCC Project and the connected
actions (e.g., effects of ground-level
concentrations of criteria pollutants and
trace metals including mercury, on
surrounding areas, including those of
special concern such as Prevention of
Significant Deterioration Class I areas).
Potential effects of greenhouse gas
emissions.
(2) Water Resources: Potential effects
of groundwater withdrawals and
discharges of effluents to surface waters.
Potential water resources impacts
resulting from construction and
operation of the connected actions.
(3) Infrastructure and Land Use:
Potential effects on existing
infrastructure and land uses resulting
from the construction and operation of
the proposed IGCC project and
connected action facilities. For example,
potential traffic effects resulting from
the proposed project and potential land
use impacts of committing land to
power plant or temporary land use
impacts of mining.
(4) Solid Waste: Pollution prevention
and waste management issues,
including potential solid waste impacts
caused by the generation, treatment,
transport, storage, and management of
ash and solid wastes.
(5) Visual: Potential aesthetic impacts
associated with new stacks, mechanicaldraft cooling tower, two flare derricks,
and other plant structures included in
the IGCC plant and from the connected
actions.
(6) Floodplain: Potential impacts (e.g.,
impeding floodwaters, re-directing
floodwaters, onsite property damage) of
siting structures and infrastructure
within a floodplain.
(7) Wetlands: Potential effects to
wetlands due to construction and
operation of the power plant and the
connected action facilities.
(8) Ecological: Potential onsite and
offsite impacts to vegetation, terrestrial
wildlife, aquatic wildlife, threatened
and endangered species (other than
broadly distributed and wide ranging
species such as the bald eagle and redcockaded woodpecker, the threatened
Price’s potato bean is the only Federally
protected species known to occur in
Kemper County), and ecologically
sensitive habitats due to the
construction and operation of the power
plant and connected actions.
(9) Safety and Health: Constructionrelated safety, process safety, and
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management of process chemicals and
materials.
(10) Construction: Potential impacts
associated with noise, traffic patterns,
and construction-related emissions.
(11) Community Impacts: Potential
congestion and other impacts to local
traffic patterns; socioeconomic impacts
on public services and infrastructure
(e.g., police protection, schools, and
utilities); noise associated with project
operation; and environmental justice
issues with respect to the surrounding
community.
(12) Cultural and Archaeological
Resources: Potential impacts to such
resources associated with construction
of the project and connected actions.
(13) Cumulative Effects: The
incremental impacts of the proposed
project (e.g., incremental air emissions
affecting ambient air quality) when
added to other past, present, and
reasonably foreseeable future actions,
including the connected actions. This
analysis will include potential impacts
on global climate change.
The level of analysis of issues
analyzed in the EIS will be in
accordance with their level of
importance and as determined by the
scoping process. The most detailed
analyses are tentatively expected to
focus on potential impacts on air
resources, cultural and archaeological
resources, communities (noise and
traffic), water resources, wetlands, and
ecological resources.
Public Scoping Process: To ensure
that all issues related to this proposal
are properly addressed, DOE will
conduct an open process to define the
scope of the EIS. The public scoping
period will end on October 23, 2008.
Interested agencies, organizations, and
the general public are encouraged to
submit comments or suggestions
concerning the content of the EIS, issues
and impacts to be addressed in the EIS,
and alternatives that should be
considered. Scoping comments should
clearly describe specific issues or topics
that the EIS should address in order to
assist DOE in identifying significant
issues. Written, e-mailed, faxed, or
telephoned comments should be
communicated by October 23, 2008 (see
ADDRESSES).
In addition, DOE will conduct a
public scoping meeting at the Kemper
County High School, 429 Philadelphia
Road, DeKalb, Mississippi, at 7 PM on
October 14, 2008. The public is also
invited to learn more about the
proposed project at an informal session
at this location beginning at 5 PM. DOE
requests that anyone who wishes to
speak at this public scoping meeting
contact Mr. Richard A. Hargis, either by
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54573
phone, fax, computer, or in writing (see
ADDRESSES).
Individuals who do not make advance
arrangements to speak may register at
the meeting and will be given the
opportunity to speak following
previously scheduled speakers.
Speakers who need more than five
minutes should indicate the length of
time desired in their request. Depending
on the number of speakers, DOE may
need to limit speakers to five-minute
presentations initially, but will provide
additional opportunities as time
permits. Speakers can also provide
written material to supplement their
presentations. Oral and written
comments will be given equal weight.
DOE will begin the formal meeting
with an overview of the proposed
Kemper County IGCC Project. DOE will
designate a presiding officer to chair the
meeting. The meeting will not be
conducted as an evidentiary hearing,
and speakers will not be crossexamined. However, speakers may be
asked questions to ensure that DOE fully
understands their comments or
suggestions. The presiding officer will
establish the order of speakers and
provide any additional procedures
necessary to conduct the meeting.
Issued in Washington, DC, this 17th day of
September 2008.
James A. Slutz,
Assistant Secretary (Acting), Office of Fossil
Energy.
[FR Doc. E8–22100 Filed 9–19–08; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Notice of Interim Approval
Southeastern Power
Administration, DOE.
ACTION: Notice of Interim Approval for
Southeastern Power Administration
Cumberland System.
AGENCY:
SUMMARY: The Deputy Secretary of
Energy confirmed and approved, on an
interim basis, Rate Schedules CBR–1–G,
CSI–1–G, CEK–1–G, CM–1–G, CC–1–H,
CK–1–G, CTV–1–G, and Replacement-3.
The rates were approved on an interim
basis through September 30, 2013. The
new rates take effect on October 1, 2008,
and are subject to confirmation and
approval on a final basis by the Federal
Energy Regulatory Commission
(‘‘FERC’’).
Approval of the rate schedules
on an interim basis is effective October
1, 2008, through September 30, 2013.
FOR FURTHER INFORMATION CONTACT:
Leon Jourolmon, Assistant
DATES:
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Administrator, Finance & Marketing,
Southeastern Power Administration,
Department of Energy, 1166 Athens
Tech Road, Elberton, Georgia 30635–
6711, (706) 213–3800.
SUPPLEMENTARY INFORMATION: On August
19, 2008, FERC confirmed and approved
Interim Wholesale Power Rate
Schedules CBR–1–F, CSI–1–F, CEK–1–
F, CM–1–F, CC–1–G, CK–1–F, and
CTV–1–F for the period from February
25, 2008 to September 30, 2008.
Dated: September 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
DEPARTMENT OF ENERGY DEPUTY
SECRETARY
In the Matter of: Southeastern Power
Administration
Cumberland System Rates
[Rate Order No. SEPA–50]
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Order Confirming and Approving
Power Rates on an Interim Basis
Pursuant to Sections 302(a) and
301(b) of the Department of Energy
Organization Act, Public Law 95–91, the
functions of the Secretary of the Interior
and the Federal Power Commission
under Section 5 of the Flood Control
Act of 1944, 16 U.S.C. 825s, relating to
the Southeastern Power Administration
(‘‘Southeastern’’ or ‘‘SEPA’’) were
transferred to and vested in the
Secretary of Energy. By Delegation
Order No. 00–037.00, effective
December 6, 2001, the Secretary of
Energy delegated to Southeastern’s
Administrator the authority to develop
power and transmission rates, and
delegated to the Deputy Secretary of
Energy the authority to confirm,
approve, and place in effect such rates
on an interim basis, and delegated to the
Federal Energy Regulatory Commission
(‘‘FERC’’) the authority to confirm,
approve, and place into effect on a final
basis or to disapprove rates developed
by the Administrator under the
delegation. This rate order is issued by
the Deputy Secretary pursuant to said
notice.
Background
The FERC issued an order approving
Rate Schedules CBR–1–F, CSI–1–F,
CEK–1–F, CM–1–F, CC–1–G, CK–1–F,
and CTV–1–F on a final basis for the
sale of power from the Cumberland
System August 19, 2008 (124 FERC
¶ 62,139).
The power marketing policy provides
peaking capacity, along with 1500 hours
of energy with each kilowatt of capacity,
to customers outside the Tennessee
Valley Authority (‘‘TVA’’) transmission
system. Due to restrictions on the
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operations of the Wolf Creek and Center
Hill Projects imposed by the U.S. Army
Corps of Engineers (‘‘Corps’’) as a
precaution to prevent failure of the dam,
Southeastern has not been able to
provide peaking capacity to these
customers. An interim operating plan
for the Cumberland System provides
these customers with energy that does
not include capacity.
Public Notice and Comment
Notice of a proposed rate adjustment
was published in the Federal Register
April 11, 2008 (73 FR 19832). The
notice advised interested parties of a
public information and comment forum
to be held in Nashville, Tennessee on
May 22, 2008. Written comments were
accepted on or before July 10, 2008.
Written comments were received from
six sources pursuant to this notice.
Comment 1: There is concern * * *
whether the amounts included for Corps
Operation and Maintenance (‘‘O&M’’)
expense are appropriate forecasts in
light of potential budget cuts in Corps
appropriations in Fiscal Year 2009.
The Southeastern Federal Power
Customers, Inc. (‘‘SeFPC’’ or
‘‘Customers’’) has frequently questioned
whether the amounts for Corps O&M
and at times renewals and replacements,
in a proposed rate are appropriate when
Congress appears poised to reduce the
funding levels for these precise
activities. In particular, the Customers
have not wanted to pay more in rates
than what the Corps will receive from
Congress for O&M and renewals and
replacement activity. Therefore, the
Customers encourage SEPA to examine
closely the proposed O&M projections
to ensure that they appropriately align
with anticipated appropriations.
Response 1: The Corps provides O&M
estimates to Southeastern annually. The
customers have an opportunity to
review the Corps’ estimated and actual
costs annually through the O&M
committee of the SeFPC. Southeastern
believes that the estimates are the best
available.
Comment 2: * * * the SeFPC suggests
that SEPA develop a consultation and
related true-up process for
implementing a rate in the event that
capacity is made available. Under the
consultation and true-up process
suggested * * * SEPA would consult
with preference customers regarding
available capacity to market to all
existing customers of the Cumberland
River Basin projects. The consultation
could involve a meeting or conference
call or some other communication
depending upon the immediacy of the
available capacity. During this
conference with the customers, SEPA
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would explain how it intends to market
the capacity and how it would recover
the necessary revenues. At or around
this time, the customers could suggest
how the marketing of the capacity could
be adjusted, including offering
comments as suitable on the appropriate
pricing for capacity and energy. SEPA
would consider the input from the
customers and make modifications as
deemed appropriate for the
implementation of the interim rate for
capacity and energy sales.
To remain true to the proposed rate,
the Customers recommend that SEPA
evaluate the sales of capacity and energy
on an ongoing, yet practical, basis to
determine whether the capacity and
energy delivered was consistent with
the projections used to develop the rates
under rate Alternative Two. In the event
that there is a significant deviation in
the amount of delivered capacity and
energy from the projections used to
prepare the rate, SEPA would again
consult with the customers. As
appropriate, SEPA would change the
interim rate for the capacity and energy
sales to ensure that the delivery of the
benefits of the projects remains
consistent with the underlying
marketing plan for the Cumberland
System of Projects.
Response 2: Southeastern will consult
with Cumberland System customers on
any marketing arrangements and rate
design matters involved in the rates
under Alternative Two. The
consultation could include meetings,
conference calls, or some other
communications depending on the
immediacy of the available capacity.
Southeastern will consider the input
from the customers and make
modifications Southeastern deems
appropriate for the implementation of
the interim rate for capacity and energy
sales.
Southeastern does not believe a trueup mechanism is appropriate or
necessary for the rates that may be
established under Alternative Two.
Southeastern evaluates and monitors all
sales of capacity and energy on an
ongoing, continuous basis and makes
changes when Southeastern determines
they are appropriate.
Comment 3: South Mississippi
Electric Power Association (‘‘SMEPA’’)
encourages SEPA to examine closely the
proposed rate increase and keep it to the
absolute minimum required to satisfy
SEPA revenue requirements.
Response 3: Under the Flood Control
Act of 1944 (‘‘Act’’), Southeastern is
required to market power at the lowest
possible rates consistent with sound
business principles. The Administrator
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has certified that the proposed rates
satisfy this requirement of the Act.
Comment 4: East Kentucky Power
Cooperative (‘‘EKPC’’) submits that
SEPA is not purchasing firm
transmission service for the 70 MW at
the Laurel Dam facility; therefore, EKPC
should not have to pay a firm TVA
transmission service charge for that
capacity.
Response 4: By contract, under
normal operating conditions, EKPC will
receive 170 MW from the Cumberland
projects. Delivery of EKPC’s allocation
is not limited to the operations of any
Cumberland project. The output of the
Laurel Project, which is in EKPC’s
control area, is supplemented by energy
and capacity from the Cumberland
Projects in TVA’s control area.
Southeastern believes it is appropriate
to continue to recover the TVA
transmission charge from EKPC’s full
allocation.
Comment 5: It is TVA’s understanding
that there were certain errors in the
financial information set forth in Exhibit
5 of SEPA’s rate change support
materials. Those errors in turn resulted
in errors in the calculation of the
published proposed rate changes for
TVA and for SEPA’s other Cumberland
System customers. It is TVA’s
understanding that SEPA is aware of
those errors and intends to correct them.
Accordingly, TVA’s forbearance of
raising objections to the proposed rate
changes is based on TVA’s expectation
that these corrections will be made such
that the new rates to be paid by all
SEPA’s Cumberland System customers
will be increased by approximately the
same 4.9 per centum consistent with
SEPA’s own policies for such rate
changes regarding the Cumberland
System of Projects.
Response 5: Southeastern has
corrected certain errors in the rate
design of the proposed rates under
Alternative Three. After correcting the
errors, the rate adjustment is about five
percent (5%) for all Cumberland
customers except those in Carolina
Power & Light, Western Division
(‘‘CP&L’’). The CP&L area customers’
increase is less because the CP&L
transmission rate has not changed.
Comment 6: The purpose for the
proposed rate changes cannot be
achieved unless the Corps, SEPA, and
the Cumberland System customers
reach agreement upon and implement
Memorandums of Agreement (‘‘MOAs’’)
sufficient to cover each and all of Fiscal
Years 2008 through 2028 and related
Sub-agreements. Accordingly, TVA’s
forbearance of raising objections to the
proposed rate changes is based on
TVA’s expectation that MOAs and
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related Sub-agreements * * * will be
executed and appropriately
implemented.
The Tennessee Valley Public Power
Association (‘‘TVPPA’’) respectfully
recommends that unless and until the
United States Army Corps of Engineers
(‘‘USACE’’), the Southeastern Power
Administration (‘‘SEPA’’) and the
Cumberland System Customers of SEPA
have reached an agreement with a
specific understanding as to amount and
duration for rehabilitation and
replacement work on the USACE
hydroelectric projects on the
Cumberland System, that the rate
increase should not be implemented.
Response 6: Southeastern is required
to include estimates of replacements
and additions in the repayment study to
support the proposed rate schedules.
Southeastern believes the estimates of
replacements and additions included in
this rate adjustment are the best
available. Southeastern believes this rate
adjustment would be necessary
independent of the implementation of
MOAs and related Sub-agreements.
Discussion
54575
Submission to the Federal Energy
Regulatory Commission
The rates hereinafter confirmed and
approved on an interim basis, together
with supporting documents, will be
submitted promptly to FERC for
confirmation and approval on a final
basis, ending no later than September
30, 2013.
Order
In view of the foregoing and pursuant
to the authority delegated to me by the
Secretary of Energy, I hereby confirm
and approve on an interim basis,
effective October 1, 2008, attached
Wholesale Power Rate Schedules CBR–
1–G, CSI–1–G, CEK–1–G, CM–1–G, CC–
1–H, CK–1–G, CTV–1–G, and
Replacement–3. The rate schedules
shall remain in effect on an interim
basis through September 30, 2013,
unless such period is extended or until
FERC confirms and approves them or
substitute rate schedules on a final
basis.
Dated: September 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
System Repayment
Wholesale Power Rate Schedule
CBR–1–G
An examination of Southeastern’s
revised system power repayment study,
prepared in July 2008, for the
Cumberland System, shows that with
the proposed rates, all system power
costs are paid within the 50-year
repayment period required by existing
law and DOE Order RA 6120.2. The
Administrator of Southeastern has
certified that the rates are consistent
with applicable law and that they are
the lowest possible rates to customers
consistent with sound business
principles.
Availability
This rate schedule shall be available
to Big Rivers Electric Corporation and
includes the City of Henderson,
Kentucky, (hereinafter called the
Customer).
Environmental Impact
Southeastern has reviewed the
possible environmental impacts of the
rate adjustment under consideration and
has concluded that, because the
adjusted rates would not significantly
affect the quality of the human
environment within the meaning of the
National Environmental Policy Act of
1969, the proposed action is not a major
Federal action for which preparation of
an Environmental Impact Statement is
required.
Availability of Information
Information regarding these rates,
including studies, and other supporting
materials, is available for public review
in the offices of Southeastern Power
Administration, 1166 Athens Tech
Road, Elberton, Georgia 30635–6711.
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Applicability
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of sixty hertz. The power
shall be delivered at nominal voltages of
13,800 volts and 161,000 volts to the
transmission system of Big Rivers
Electric Corporation.
Points of Delivery
Capacity and energy delivered to the
Customer will be delivered at points of
interconnection of the Customer at the
Barkley Project Switchyard, at a
delivery point in the vicinity of the
Paradise steam plant and at such other
points of delivery as may hereafter be
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agreed upon by the Government and
TVA.
Billing Month
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Conditions of Service
The customer shall at its own expense
provide, install, and maintain on its side
of each delivery point the equipment
necessary to protect and control its own
system. In so doing, the installation,
adjustment, and setting of all such
control and protective equipment at or
near the point of delivery shall be
coordinated with that which is installed
by and at the expense of TVA on its side
of the delivery point.
Southeastern is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$50,400,000.
Rate Alternative 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the
Tennessee Valley Authority (TVA)
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers as a precaution to prevent
failure of the dams, Southeastern is not
able to provide peaking capacity to
these customers. Southeastern
implemented an Interim Operating Plan
for the Cumberland System to provide
these customers with energy that did
not include capacity. The rates under
Alternative 1 will remain in effect for
the duration of the Interim Operating
Plan.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
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None.
Energy Charge
12.67 mills per kilowatt-hour.
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Transmission
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
Administration (Administrator)
provides to the Tennessee Valley
Authority (TVA) as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
Big Rivers Electric Corporation—
32.660%
City of Henderson, Kentucky—2.202%
Energy To Be Furnished by the
Government
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Alternative 2—Cost Recovered
From Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $50,400,000,
the same as the revenue requirement in
Alternatives 1 and 3. The rate
alternative 2 will receive revenues from
capacity that can be scheduled and the
remainder from energy, at charges that
will be determined at the time. Under
alternative 2, the cost of the TVA
transmission credit will be passed to
customers outside the TVA System.
This rate alternative will be in effect
when the Corps modifies operation of
the Wolf Creek Project and the Center
Hill Project to allow some of the
capacity scheduled. When the lake level
rises and capacity is available, the
capacity will be allocated on an interim
basis to the customers.
Rate Alternative 3—Original
Cumberland Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
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Demand Charge
$3.538 per kilowatt/month of total
contract demand.
Energy Charge
None.
Energy To Be Furnished by the
Government
The Government shall make available
each contract year to the customer from
the Projects through the customer’s
interconnections with TVA and the
customer will schedule and accept an
allocation of 1500 kilowatt-hours of
energy delivered at the TVA border for
each kilowatt of contract demand. A
contract year is defined as the 12
months beginning July 1 and ending at
midnight June 30 of the following
calendar year. The energy made
available for a contract year shall be
scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
customer’s contract demand. The
customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the customer’s
contract demand; provided, that the
combined schedule of all SEPA
customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these customers.
Service Interruption
When delivery of capacity is
interrupted or reduced due to
conditions on the Administrator’s
system beyond his control, the
Administrator will continue to make
available the portion of his declaration
of energy that can be generated with the
capacity available.
For such interruption or reduction
due to conditions on the
Administrator’s system which have not
been arranged for and agreed to in
advance, the demand charge for
capacity made available will be reduced
as to the kilowatts of such capacity
which have been interrupted or reduced
in accordance with the following
formula:
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54577
Monthly Capacity Charge
Number of Days in Billing Month
n
( Number of kilowatts unavailable for at least 12 hours in any calendar day ) ×
Availability
This rate schedule shall be available
to Southern Illinois Power Cooperative
(hereinafter the Customer).
Applicability
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service
Points of Delivery
Capacity and energy delivered to the
Customer will be delivered at points of
interconnection of the Customer at the
Barkley Project Switchyard, at a
delivery point in the vicinity of the
Paradise steam plant and at such other
points of delivery as may hereafter be
agreed upon by the Government and
TVA.
Billing Month
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Southeastern is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$50,400,000.
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Rate Alternative 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the
Tennessee Valley Authority (TVA)
transmission system. Due to restrictions
on the operation of the Wolf Creek
19:11 Sep 19, 2008
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
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None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay 5.138 percent
of the credit the Administrator of
Southeastern Power Administration
(Administrator) provides to the
Tennessee Valley Authority (TVA) as
consideration for delivering capacity
and energy for the account of the
Administrator to points of delivery of
Other Customers or interconnection
points of delivery with other electric
systems for the benefit of Other
Customers, as agreed by contract
between the Administrator and TVA.
Energy To Be Furnished by the
Government
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Alternative 2—Cost Recovered
From Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $50,400,000,
the same as the revenue requirement in
Alternatives 1 and 3. The rate
alternative 2 will receive revenues from
capacity that can be scheduled and the
remainder from energy, at charges that
will be determined at the time. Under
alternative 2, the cost of the TVA
transmission credit will be passed to
PO 00000
Frm 00024
Fmt 4703
customers outside the TVA System.
This rate alternative will be in effect
when the Corps modifies operation of
the Wolf Creek Project and the Center
Hill Project to allow some of the
capacity scheduled. When the lake level
rises and capacity is available, the
capacity will be allocated on an interim
basis to the customers.
Rate Alternative 3—Original
Cumberland Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of sixty hertz. The power
shall be delivered at nominal voltages of
13,800 volts and 161,000 volts to the
transmission system of Big Rivers
Electric Corporation.
VerDate Aug<31>2005
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers as a precaution to prevent
failure of the dams, Southeastern is not
able to provide peaking capacity to
these customers. Southeastern
implemented an Interim Operating Plan
for the Cumberland System to provide
these customers with energy that did
not include capacity. The rates under
Alternative 1 will remain in effect for
the duration of the Interim Operating
Plan.
Sfmt 4703
Demand Charge
$3.538 per kilowatt/month of total
contract demand.
Energy Charge
None.
Energy To Be Furnished by the
Government
The Government shall make available
each contract year to the customer from
the Projects through the customer’s
interconnections with TVA and the
customer will schedule and accept an
allocation of 1500 kilowatt-hours of
energy delivered at the TVA border for
each kilowatt of contract demand. A
contract year is defined as the 12
months beginning July 1 and ending at
midnight June 30 of the following
calendar year. The energy made
available for a contract year shall be
scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
customer’s contract demand. The
customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the customer’s
contract demand; provided, that the
combined schedule of all SEPA
customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these customers.
E:\FR\FM\22SEN1.SGM
22SEN1
EN22SE08.000</GPH>
Wholesale Power Rate Schedule
CSI–1–G
54578
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
Service Interruption
available the portion of his declaration
of energy that can be generated with the
capacity available.
For such interruption or reduction
due to conditions on the
Administrator’s system which have not
been arranged for and agreed to in
When delivery of capacity is
interrupted or reduced due to
conditions on the Administrator’s
system beyond his control, the
Administrator will continue to make
advance, the demand charge for
capacity made available will be reduced
as to the kilowatts of such capacity
which have been interrupted or reduced
in accordance with the following
formula:
Monthly Capacity Charge
Number of Days in Billing Month
n
( Number of kilowatts unavailable for at least 12 hours in any calendar day ) ×
Availability
Southeastern is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$50,400,000.
This rate schedule shall be available
to East Kentucky Power Cooperative
(hereinafter called the Customer).
Rate Alternative 1—Interim Operating
Plan
Applicability
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and power available from the
Laurel Project and sold in wholesale
quantities.
Character of Service
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of sixty hertz. The power
shall be delivered at nominal voltages of
161,000 volts to the transmission
systems of the Customer.
Points of Delivery
The points of delivery will be the
161,000 volt bus of the Wolf Creek
Power Plant and the 161,000 volt bus of
the Laurel Project. Other points of
delivery may be as agreed upon.
Billing Month
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the
Tennessee Valley Authority (TVA)
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U. S. Army Corps of
Engineers as a precaution to prevent
failure of the dams, Southeastern is not
able to provide peaking capacity to
these customers. Southeastern
implemented an Interim Operating Plan
for the Cumberland System to provide
these customers with energy that did
not include capacity. The rates under
Alternative 1 will remain in effect for
the duration of the Interim Operating
Plan.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
Conditions of Service
sroberts on PROD1PC70 with NOTICES
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Transmission Charge
The customer shall at its own expense
provide, install, and maintain on its side
of each delivery point the equipment
necessary to protect and control its own
system. In so doing, the installation,
adjustment and setting of all such
control and protective equipment at or
near the point of delivery shall be
coordinated with that which is installed
by and at the expense of TVA on its side
of the delivery point.
The Customer will pay 31.192 percent
of the credit the Administrator of
Southeastern Power Administration
(Administrator) provides to the
Tennessee Valley Authority (TVA) as
consideration for delivering capacity
and energy for the account of the
Administrator to points of delivery of
Other Customers or interconnection
points of delivery with other electric
systems for the benefit of Other
VerDate Aug<31>2005
19:11 Sep 19, 2008
Jkt 214001
Energy Charge
12.67 mills per kilowatt-hour.
Frm 00025
Fmt 4703
Energy To Be Furnished by the
Government
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Alternative 2—Cost Recovered
from Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $50,400,000,
the same as the revenue requirement in
Alternatives 1 and 3. The rate
alternative 2 will receive revenues from
capacity that can be scheduled and the
remainder from energy, at charges that
will be determined at the time. Under
alternative 2, the cost of the TVA
transmission credit will be passed to
customers outside the TVA System.
This rate alternative will be in effect
when the Corps modifies operation of
the Wolf Creek Project and the Center
Hill Project to allow some of the
capacity scheduled. When the lake level
rises and capacity is available, the
capacity will be allocated on an interim
basis to the customers.
Rate Alternative 3—Original
Cumberland Marketing Policy
None.
PO 00000
Customers, as agreed by contract
between the Administrator and TVA.
Sfmt 4703
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
$2.364 per kilowatt/month of total
contract demand.
E:\FR\FM\22SEN1.SGM
22SEN1
EN22SE08.001</GPH>
Wholesale Power Rate Schedule
CEK–1–G
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
Energy Charge
9.392 mills per kilowatt-hour.
Energy To Be Furnished by the
Government
The Government shall make available
each contract year to the customer from
the Projects through the customer’s
interconnections with TVA and the
customer will schedule and accept an
allocation of 1500 kilowatt-hours of
energy delivered at the TVA border for
each kilowatt of contract demand plus
369 kilowatt-hours of energy delivered
for each kilowatt of contract demand to
supplement energy available at the
Laurel Project. A contract year is
defined as the 12 months beginning July
1 and ending at midnight June 30 of the
following calendar year. The energy
made available for a contract year shall
be scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
customer’s contract demand. The
customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the customer’s
contract demand; provided, that the
combined schedule of all SEPA
customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these customers.
54579
Service Interruption
When delivery of capacity is
interrupted or reduced due to
conditions on the Administrator’s
system beyond his control, the
Administrator will continue to make
available the portion of his declaration
of energy that can be generated with the
capacity available.
For such interruption or reduction
due to conditions on the
Administrator’s system which have not
been arranged for and agreed to in
advance, the demand charge for
capacity made available will be reduced
as to the kilowatts of such capacity
which have been interrupted or reduced
in accordance with the following
formula:
Monthly Capacity Charge
Number of Days in Billing Month
n
( Number of kilowatts unavailable for at least 12 hours in any calendar day ) ×
Availability
This rate schedule shall be available
to the South Mississippi Electric Power
Association, Municipal Energy Agency
of Mississippi, and Mississippi Delta
Energy Agency (hereinafter called the
Customers).
Applicability
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of sixty hertz. The power
shall be delivered at nominal voltages of
161,000 volts to the transmission
systems of Mississippi Power and Light.
sroberts on PROD1PC70 with NOTICES
Points of Delivery
The points of delivery will be at
interconnection points of the Tennessee
Valley Authority system and the
Mississippi Power and Light system.
Other points of delivery may be as
agreed upon.
Billing Month
The billing month for power sold
under this schedule shall end at 2400
VerDate Aug<31>2005
19:11 Sep 19, 2008
Jkt 214001
hours CDT or CST, whichever is
currently effective on the last day of
each calendar month.
Southeastern is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$50,400,000.
Rate Alternative 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the
Tennessee Valley Authority (TVA)
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers as a precaution to prevent
failure of the dams, Southeastern is not
able to provide peaking capacity to
these customers. Southeastern
implemented an Interim Operating Plan
for the Cumberland System to provide
these customers with energy that did
not include capacity. The rates under
Alternative 1 will remain in effect for
the duration of the Interim Operating
Plan.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
None.
PO 00000
Frm 00026
Fmt 4703
Sfmt 4703
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
Administration (Administrator)
provides to the Tennessee Valley
Authority (TVA) as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
Mississippi Delta Energy Agency—
2.058%
Municipal Energy Agency of
Mississippi—3.447%
South Mississippi EPA—9.358%
Energy To Be Furnished by the
Government
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Alternative 2—Cost Recovered
From Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $50,400,000,
the same as the revenue requirement in
Alternatives 1 and 3. The rate
alternative 2 will receive revenues from
E:\FR\FM\22SEN1.SGM
22SEN1
EN22SE08.002</MATH>
Wholesale Power Rate Schedule
CM–1–G
54580
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
capacity that can be scheduled and the
remainder from energy, at charges that
will be determined at the time. Under
alternative 2, the cost of the TVA
transmission credit will be passed to
customers outside the TVA System.
This rate alternative will be in effect
when the Corps modifies operation of
the Wolf Creek Project and the Center
Hill Project to allow some of the
capacity scheduled. When the lake level
rises and capacity is available, the
capacity will be allocated on an interim
basis to the customers.
Rate Alternative 3—Original
Cumberland Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
$3.538 per kilowatt/month of total
contract demand.
Energy Charge
None.
Energy To Be Furnished by the
Government
The Government shall make available
each contract year to the Customer from
the Projects through the Customer’s
interconnections with TVA and the
Customer will schedule and accept an
allocation of 1500 kilowatt-hours of
energy delivered at the TVA border for
each kilowatt of contract demand. A
contract year is defined as the 12
months beginning July 1 and ending at
midnight June 30 of the following
calendar year. The energy made
available for a contract year shall be
scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the Customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
Customer’s contract demand. The
Customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the Customer’s
contract demand; provided, that the
combined schedule of all SEPA
Customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these Customers.
In the event that any portion of the
capacity allocated to the Customers is
not initially delivered to the Customers
as of the beginning of a full contract
year, the 1500 kilowatt hours shall be
reduced 1/12 for each month of that
year prior to initial delivery of such
capacity.
Service Interruption
When delivery of capacity is
interrupted or reduced due to
conditions on the Administrator’s
system beyond his control, the
Administrator will continue to make
available the portion of his declaration
of energy that can be generated with the
capacity available.
For such interruption or reduction
due to conditions on the
Administrator’s system which have not
been arranged for and agreed to in
advance, the demand charge for
capacity made available will be reduced
as to the kilowatts of such capacity
which have been interrupted or reduced
in accordance with the following
formula:
Monthly Capacity Charge
Number of Days in Billing Month
n
( Number of kilowatts unavailable for at least 12 hours in any calendar day ) ×
of Carolina Power & Light Company,
Western Division.
Availability
Points of Delivery
The points of delivery will be at
interconnecting points of the Tennessee
Valley Authority system and the
Carolina Power & Light Company,
Western Division system. Other points
of delivery may be as agreed upon.
This rate schedule shall be available
to public bodies and cooperatives
served through the facilities of Carolina
Power & Light Company, Western
Division (hereinafter called the
Customers).
Applicability
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
sroberts on PROD1PC70 with NOTICES
Character of Service
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of sixty hertz. The power
shall be delivered at nominal voltages of
161,000 volts to the transmission system
VerDate Aug<31>2005
19:11 Sep 19, 2008
Jkt 214001
Billing Month
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Southeastern is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$50,400,000.
Rate Alternative 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
PO 00000
Frm 00027
Fmt 4703
Sfmt 4703
of energy annually with each kilowatt of
capacity, to customers outside the
Tennessee Valley Authority (TVA)
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers as a precaution to prevent
failure of the dams, Southeastern is not
able to provide peaking capacity to
these customers. Southeastern
implemented an Interim Operating Plan
for the Cumberland System to provide
these customers with energy that did
not include capacity. The rates under
Alternative 1 will remain in effect for
the duration of the Interim Operating
Plan.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
E:\FR\FM\22SEN1.SGM
22SEN1
EN22SE08.003</MATH>
Wholesale Power Rate Schedule
CC–1–H
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
TVA Transmission Charge
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
Administration (Administrator)
provides to the Tennessee Valley
Authority (TVA) as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
French Broad EMC—1.713%
Haywood EMC—0.501%
Town of Waynesville—0.355%
sroberts on PROD1PC70 with NOTICES
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Energy Charge
None.
CP&L Transmission Charge
Rate Alternative 2—Cost Recovered
From Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $50,400,000,
the same as the revenue requirement in
Alternatives 1 and 3. The rate
alternative 2 will receive revenues from
capacity that can be scheduled and the
remainder from energy, at charges that
will be determined at the time. Under
alternative 2, the cost of the TVA
transmission credit will be passed to
customers outside the TVA System.
This rate alternative will be in effect
when the Corps modifies operation of
the Wolf Creek Project and the Center
Hill Project to allow some of the
capacity scheduled. When the lake level
Jkt 214001
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
$4.027 per kilowatt/month of total
contract demand.
Energy To Be Furnished by the
Government
The Government will sell to the
customer and the customer will
purchase from the Government energy
each billing month equivalent to a
percentage specified by contract of the
energy made available to Carolina
Power & Light Company (less applicable
losses). The Customer’s contract
demand and accompanying energy
allocation will be divided pro rata
among its individual delivery points
served from the Carolina Power & Light
Company’s Western Division
transmission system.
19:11 Sep 19, 2008
Rate Alternative 3—Original
Cumberland Marketing Policy
Demand Charge
CP&L Transmission Charge
The Customer will pay a ratable
percent listed below of the charge for
transmission service furnished by
Carolina Power & Light Company,
Western Division.
French Broad EMC—66.667%
Haywood EMC—19.512%
Town of Waynesville—13.821%
VerDate Aug<31>2005
rises and capacity is available, the
capacity will be allocated on an interim
basis to the customers.
$1.1022 per kilowatt/month of total
contract demand.
The CP&L transmission rate is subject
to annual adjustment on April 1 of each
year and will be computed subject to the
formula in Appendix A attached to the
Government-Carolina Power & Light
Company contract.
Energy To Be Furnished by the
Government
The Government will sell to the
customer and the customer will
purchase from the Government energy
each billing month equivalent to a
percentage specified by contract of the
energy made available to Carolina
Power & Light Company (less six
percent (6%) losses). The Customer’s
contract demand and accompanying
energy allocation will be divided pro
rata among its individual delivery
points served from the Carolina Power
& Light Company’s Western Division
transmission system.
Wholesale Power Rate Schedule
CK–1–G
Availability
This rate schedule shall be available
to public bodies served through the
facilities of Kentucky Utilities Company
(hereinafter called the Customers.)
Applicability
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
PO 00000
Frm 00028
Fmt 4703
Sfmt 4703
54581
Projects’’) and sold in wholesale
quantities.
Character of Service
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of sixty hertz. The power
shall be delivered at nominal voltages of
161,000 volts to the transmission
systems of Kentucky Utilities Company.
Points of Delivery
The points of delivery will be at
interconnecting points between the
Tennessee Valley Authority system and
the Kentucky Utilities Company system.
Other points of delivery may be as
agreed upon.
Billing Month
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective on the last day of
each calendar month.
Southeastern is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$50,400,000.
Rate Alternative 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the
Tennessee Valley Authority (TVA)
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers as a precaution to prevent
failure of the dams, Southeastern is not
able to provide peaking capacity to
these customers. Southeastern
implemented an Interim Operating Plan
for the Cumberland System to provide
these customers with energy that did
not include capacity. The rates under
Alternative 1 will remain in effect for
the duration of the Interim Operating
Plan.
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
E:\FR\FM\22SEN1.SGM
22SEN1
54582
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
Transmission Charge
Monthly Rate
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
Administration (Administrator)
provides to the Tennessee Valley
Authority (TVA) as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
City
City
City
City
City
City
City
City
City
City
City
City
Energy To Be Furnished by the
Government
of
of
of
of
of
of
of
of
of
of
of
of
Barbourville .............
Bardstown ................
Bardwell ...................
Benham ....................
Corbin ......................
Falmouth ..................
Frankfort ..................
Madisonville ............
Nicholasville ............
Owensboro ...............
Paris .........................
Providence ...............
0.404%
0.412%
0.099%
0.046%
0.477%
0.108%
2.866%
1.432%
0.469%
4.587%
0.250%
0.226%
Energy To Be Furnished by the
Government
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Alternative 2—Cost Recovered
From Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $50,400,000,
the same as the revenue requirement in
Alternatives 1 and 3. The rate
alternative 2 will receive revenues from
capacity that can be scheduled and the
remainder from energy, at charges that
will be determined at the time. Under
alternative 2, the cost of the TVA
transmission credit will be passed to
customers outside the TVA System.
This rate alternative will be in effect
when the Corps modifies operation of
the Wolf Creek Project and the Center
Hill Project to allow some of the
capacity scheduled. When the lake level
rises and capacity is available, the
capacity will be allocated on an interim
basis to the customers.
Demand Charge
$3.538 per kilowatt/month of total
contract demand
Energy Charge
None.
Additional Energy Charge
9.392 mills per kilowatt-hour.
The Government shall make available
each contract year to the Customer from
the Projects and the Customer will
accept an allocation of 1500 kilowatthours of energy for each kilowatt of
contract demand. A contract year is
defined as the 12 months beginning July
1 and ending at midnight June 30 of the
following calendar year. The energy
made available for a contract year shall
be scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the Customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
Customer’s contract demand. The
Customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the Customer’s
contract demand; provided, that the
combined schedule of all SEPA
Customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these Customers.
In the event that any portion of the
capacity allocated to the Customers is
not initially delivered to the Customers
as of the beginning of a full contract
year, the 1500 kilowatt hours shall be
reduced 1⁄12 for each month of that year
prior to initial delivery of such capacity.
For billing purposes, each kilowatt of
capacity will include 1500 kilowatthours energy per year. Customers will
pay for additional energy at the
additional energy rate.
Wholesale Power Rate Schedule
CTV–1–G
sroberts on PROD1PC70 with NOTICES
Rate Alternative 3—Original
Cumberland Marketing Policy
Availability
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Applicability
VerDate Aug<31>2005
19:11 Sep 19, 2008
Jkt 214001
This rate schedule shall be available
to the Tennessee Valley Authority
(hereinafter called TVA).
This rate schedule shall be applicable
to electric capacity and energy
PO 00000
Frm 00029
Fmt 4703
Sfmt 4703
generated at the Dale Hollow, Center
Hill, Wolf Creek, Old Hickory,
Cheatham, Barkley, J. Percy Priest, and
Cordell Hull Projects (all of such
projects being hereafter called
collectively the ‘‘Cumberland Projects’’)
and the Laurel Project sold under
agreement between the Department of
Energy and TVA.
Character of Service
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a frequency of
approximately 60 Hertz at the outgoing
terminals of the Cumberland Projects’
switchyards.
Billing Month
The billing month for capacity and
energy sold under this schedule shall
end at 2400 hours CDT or CST,
whichever is currently effective, on the
last day of each calendar month.
Contract Year
For purposes of this rate schedule, a
contract year shall be as in Section 13.1
of the Southeastern Power
Administration—Tennessee Valley
Authority Contract.
Power Factor
TVA shall take capacity and energy
from the Department of Energy at such
power factor as will best serve TVA’s
system from time to time; provided, that
TVA shall not impose a power factor of
less than .85 lagging on the Department
of Energy’s facilities which requires
operation contrary to good operating
practice or results in overload or
impairment of such facilities.
Southeastern is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$50,400,000.
Rate Alternative 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the
Tennessee Valley Authority (TVA)
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U. S. Army Corps of
Engineers as a precaution to prevent
failure of the dams, Southeastern is not
able to provide peaking capacity to
these customers. Southeastern
implemented an Interim Operating Plan
for the Cumberland System to provide
E:\FR\FM\22SEN1.SGM
22SEN1
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
Rate Alternative 3—Original
Cumberland Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
these customers with energy that did
not include capacity. The rates under
Alternative 1 will remain in effect for
the duration of the Interim Operating
Plan.
Monthly Rates
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Monthly Rate
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge
None.
Demand Charge
$2.072 per kilowatt/month of total
contract demand.
Energy Charge
12.67 mills per kilowatt-hour.
Energy To Be Made Available
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Energy Charge
None.
Additional Energy Charge
9.392 mills per kilowatt-hour.
Rate Alternative 2—Cost Recovered
From Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $50,400,000,
the same as the revenue requirement in
Alternatives 1 and 3. The rate
alternative 2 will receive revenues from
capacity that can be scheduled and the
remainder from energy, at charges that
will be determined at the time. Under
alternative 2, the cost of the TVA
transmission credit will be passed to
customers outside the TVA System.
This rate alternative will be in effect
when the Corps modifies operation of
the Wolf Creek Project and the Center
Hill Project to allow some of the
capacity scheduled. When the lake level
rises and capacity is available, the
capacity will be allocated on an interim
basis to the customers.
Energy To Be Made Available
The Department of Energy shall
determine the energy that is available
from the projects for declaration in the
billing month.
To meet the energy requirements of
the Department of Energy’s customers
outside the TVA area (hereinafter called
Other Customers), 768,000 megawatthours of net energy shall be available
annually (including 36,900 megawatthours of annual net energy to
supplement energy available at Laurel
Project). The energy requirement of the
Other Customers shall be available
annually, divided monthly such that the
maximum available in any month shall
not exceed 240 hours per kilowatt of
total Other Customers contract demand,
and the minimum amount available in
any month shall not be less than 60
hours per kilowatt of total Other
Customers demand.
In the event that any portion of the
capacity allocated to Other Customers is
not initially delivered to the Other
Customers as of the beginning of a full
contract year, (July through June), the
54583
1500 hours, plus any such additional
energy required as discussed above,
shall be reduced 1⁄12 for each month of
that year prior to initial delivery of such
capacity.
The energy scheduled by TVA for use
within the TVA System in any billing
month shall be the total energy
delivered to TVA less (1) an adjustment
for fast or slow meters, if any, (2) an
adjustment for Barkley-Kentucky Canal
of 15,000 megawatt-hours of energy
each month which is delivered to TVA
under the agreement from the
Cumberland Projects without charge to
TVA, (3) the energy scheduled by the
Department of Energy in said month for
the Other Customers plus losses of two
(2) percent, and (4) station service
energy furnished by TVA.
Each kilowatt of capacity will include
1500 kilowatt-hours of energy per year,
which is defined as base energy. Energy
received in excess of 1500 kilowatthours per kilowatt will be subject to an
additional energy charge identified in
the monthly rates section of this rate
schedule.
Service Interruption
When delivery of capacity to TVA is
interrupted or reduced due to
conditions on the Department of
Energy’s system that are beyond its
control, the Department of Energy will
continue to make available the portion
of its declaration of energy that can be
generated with the capacity available.
For such interruption or reduction
(exclusive of any restrictions provided
in the agreement) due to conditions on
the Department of Energy’s system
which have not been arranged for and
agreed to in advance, the demand
charge for scheduled capacity made
available to TVA will be reduced as to
the kilowatts of such scheduled capacity
which have been so interrupted or
reduced for each day in accordance with
the following formula:
Contract Demand
Monthly Capacity Charge
Number of kilowatts unavailable for
( at least 12 hours in any calendar day ) × Number of Days in Billing Month × 880, 000 Kilowatts
y
sroberts on PROD1PC70 with NOTICES
Availability
This rate schedule shall be available
to public bodies and cooperatives ( any
one of whom is hereinafter called the
Customer) in Virginia, North Carolina,
Tennessee, Georgia, Alabama,
Mississippi, Kentucky and southern
VerDate Aug<31>2005
19:11 Sep 19, 2008
Jkt 214001
Illinois to whom power is provided
pursuant to contracts between the
Government and the customer from the
Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J.
Percy Priest, Cordell Hull, and Laurel
Projects (all of such projects being
hereinafter called collectively the
‘‘Cumberland Projects’’).
PO 00000
Frm 00030
Fmt 4703
Sfmt 4703
Applicability
This rate schedule shall be applicable
to the sale of wholesale energy
purchased to meet contract minimum
energy sold under appropriate contracts
between the Government and the
Customer.
E:\FR\FM\22SEN1.SGM
22SEN1
EN22SE08.004</MATH>
Wholesale Rate Schedule
Replacement—3
54584
Federal Register / Vol. 73, No. 184 / Monday, September 22, 2008 / Notices
Character of Service
The energy supplied hereunder will
be delivered at the delivery points
provided for under appropriate
contracts between the Government and
the Customer.
Monthly Charge
The rate for replacement energy will
be a formulary capacity charge based on
the monthly cost to the Government to
purchase replacement energy necessary
to support capacity in the Cumberland
System divided by the capacity
available from the Cumberland System,
which is 950,000 kilowatts in the
published power marketing policy. The
capacity rate will be adjusted for any
capacity retained by the Customer’s
transmission facilitator.
Conditions of Service
The customer shall at its own expense
provide, install, and maintain on its side
of each delivery point the equipment
necessary to protect and control its own
system.
[FR Doc. E8–22097 Filed 9–19–08; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Energy Information Administration
Agency Information Collection
Activities: Submission for OMB
Review; Comment Request
Energy Information
Administration (EIA), Department of
Energy (DOE).
ACTION: Agency Information Collection
Activities: Submission for OMB Review;
Comment Request.
sroberts on PROD1PC70 with NOTICES
AGENCY:
SUMMARY: The EIA has submitted the
Petroleum Supply Reporting System
package to the Office of Management
and Budget (OMB) for review and a
three-year extension under section
3507(h)(1) of the Paperwork Reduction
Act of 1995 (Pub. L. 104–13) (44 U.S.C.
3501 et seq).
DATES: Comments must be filed by
October 22, 2008. If you anticipate that
you will be submitting comments but
find it difficult to do so within that
period, you should contact the OMB
Desk Officer for DOE listed below as
soon as possible.
ADDRESSES: Send comments to OMB
Desk Officer for DOE, Office of
Information and Regulatory Affairs,
Office of Management and Budget. To
ensure receipt of the comments by the
due date, submission by FAX at 202–
395–7285 or e-mail to
Nathan_J._Frey@omb.eop.gov is
VerDate Aug<31>2005
19:11 Sep 19, 2008
Jkt 214001
recommended. The mailing address is
726 Jackson Place, NW., Washington,
DC 20503. The OMB DOE Desk Officer
may be telephoned at (202) 395–7345.
(A copy of your comments should also
be provided to EIA’s Statistics and
Methods Group at the address below.)
FOR FURTHER INFORMATION CONTACT:
Requests for additional information
should be directed to Grace Sutherland.
To ensure receipt of the comments by
the due date, submission by FAX (202–
586–5271) or e-mail
(grace.sutherland@eia.doe.gov) is also
recommended. The mailing address is
Statistics and Methods Group (EI–70),
Forrestal Building, U.S. Department of
Energy, Washington, DC 20585–0670.
Ms. Sutherland may be contacted by
telephone at (202) 586–6264.
SUPPLEMENTARY INFORMATION: This
section contains the following
information about the energy
information collection submitted to
OMB for review: (1) The collection
numbers and title; (2) the sponsor (i.e.,
the Department of Energy component);
(3) the current OMB docket number (if
applicable); (4) the type of request (i.e.,
new, revision, extension, or
reinstatement); (5) response obligation
(i.e., mandatory, voluntary, or required
to obtain or retain benefits); (6) a
description of the need for and
proposed use of the information; (7) a
categorical description of the likely
respondents; and (8) an estimate of the
total annual reporting burden (i.e., the
estimated number of likely respondents
times the proposed frequency of
response per year times the average
hours per response).
1. Forms EIA–800, 801, 802, 803, 804,
805, 810, 811, 812, 813, 814, 815, 816,
817, 819, 820 ‘‘Petroleum Supply
Reporting System’’.
2. Energy Information Administration.
3. OMB Number 1905–0165.
4. Three-year extension.
5. Mandatory.
6. EIA’s Petroleum Supply Reporting
System collects information needed for
determining the supply and disposition
of crude oil, petroleum products, and
natural gas liquids. The data are
published by EIA and are used by
public and private analysts.
Respondents are operators of petroleum
refineries, blending plants, bulk
terminals, crude oil and product
pipelines, natural gas plant facilities,
tankers, barges, and oil importers.
7. Business or other for-profit.
8. 100,186 hours.
Please refer to the supporting
statement as well as the proposed forms
and instructions for more information
about the purpose, who must report,
PO 00000
Frm 00031
Fmt 4703
Sfmt 4703
when to report, where to submit, the
elements to be reported, detailed
instructions, provisions for
confidentiality, and uses (including
possible nonstatistical uses) of the
information. For instructions on
obtaining materials, see the FOR FURTHER
INFORMATION CONTACT section.
Statutory Authority: Section 3507(h)(1) of
the Paperwork Reduction Act of 1995 (Pub.
L. No. 104–13, 44 U.S.C. Chapter 35).
Issued in Washington, DC, September 16,
2008.
Stephanie Brown,
Director, Statistics and Methods Group,
Energy Information Administration.
[FR Doc. E8–22092 Filed 9–19–08; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Combined Notice of Filings
September 16, 2008.
Take notice that the Commission has
received the following Natural Gas
Pipeline Rate and Refund Report filings:
Docket Numbers: RP97–81–051.
Applicants: Kinder Morgan Interstate
Gas Transmission LLC.
Description: Kinder Morgan Interstate
Gas Transmission LLC submits Sixth
Revised Sheet 4G.02 et al. to FERC Gas
Tariff, Fourth Revised Volume 1–A.
Filed Date: 09/12/2008.
Accession Number: 20080916–0028.
Comment Date: 5 p.m. Eastern Time
on Wednesday, September 24, 2008.
Docket Numbers: RP98–18–034.
Applicants: Iroquois Gas
Transmission System, L.P.
Description: Iroquois Gas
Transmission System, LP submits
Original Sheet 6P et al. to FERC Gas
Tariff, First Revised Volume 1, to be
effective 11/1/08.
Filed Date: 08/29/2008.
Accession Number: 20080903–0040.
Comment Date: 5 p.m. Eastern Time
on Friday, September 19, 2008.
Docket Numbers: RP99–176–165.
Applicants: Natural Gas Pipeline
Company of America.
Description: Natural Gas Pipeline
Company of America LLC submits First
Revised Sheet 33J.01 et al. to FERC Gas
Tariff, Seventy Revised Volume 1, to be
effective 11/1/08.
Filed Date: 09/12/2008.
Accession Number: 20080916–0026.
Comment Date: 5 p.m. Eastern Time
on Wednesday, September 24, 2008.
Docket Numbers: RP99–176–166.
Applicants: Natural Gas Pipeline
Company of America.
E:\FR\FM\22SEN1.SGM
22SEN1
]]>Agencies
[Federal Register Volume 73, Number 184 (Monday, September 22, 2008)]
[Notices]
[Pages 54573-54584]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22097]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Notice of Interim Approval
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of Interim Approval for Southeastern Power
Administration Cumberland System.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved, on an
interim basis, Rate Schedules CBR-1-G, CSI-1-G, CEK-1-G, CM-1-G, CC-1-
H, CK-1-G, CTV-1-G, and Replacement-3. The rates were approved on an
interim basis through September 30, 2013. The new rates take effect on
October 1, 2008, and are subject to confirmation and approval on a
final basis by the Federal Energy Regulatory Commission (``FERC'').
DATES: Approval of the rate schedules on an interim basis is effective
October 1, 2008, through September 30, 2013.
FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant
[[Page 54574]]
Administrator, Finance & Marketing, Southeastern Power Administration,
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-
6711, (706) 213-3800.
SUPPLEMENTARY INFORMATION: On August 19, 2008, FERC confirmed and
approved Interim Wholesale Power Rate Schedules CBR-1-F, CSI-1-F, CEK-
1-F, CM-1-F, CC-1-G, CK-1-F, and CTV-1-F for the period from February
25, 2008 to September 30, 2008.
Dated: September 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
DEPARTMENT OF ENERGY DEPUTY SECRETARY
In the Matter of: Southeastern Power Administration
Cumberland System Rates
[Rate Order No. SEPA-50]
Order Confirming and Approving Power Rates on an Interim Basis
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern
Power Administration (``Southeastern'' or ``SEPA'') were transferred to
and vested in the Secretary of Energy. By Delegation Order No. 00-
037.00, effective December 6, 2001, the Secretary of Energy delegated
to Southeastern's Administrator the authority to develop power and
transmission rates, and delegated to the Deputy Secretary of Energy the
authority to confirm, approve, and place in effect such rates on an
interim basis, and delegated to the Federal Energy Regulatory
Commission (``FERC'') the authority to confirm, approve, and place into
effect on a final basis or to disapprove rates developed by the
Administrator under the delegation. This rate order is issued by the
Deputy Secretary pursuant to said notice.
Background
The FERC issued an order approving Rate Schedules CBR-1-F, CSI-1-F,
CEK-1-F, CM-1-F, CC-1-G, CK-1-F, and CTV-1-F on a final basis for the
sale of power from the Cumberland System August 19, 2008 (124 FERC ]
62,139).
The power marketing policy provides peaking capacity, along with
1500 hours of energy with each kilowatt of capacity, to customers
outside the Tennessee Valley Authority (``TVA'') transmission system.
Due to restrictions on the operations of the Wolf Creek and Center Hill
Projects imposed by the U.S. Army Corps of Engineers (``Corps'') as a
precaution to prevent failure of the dam, Southeastern has not been
able to provide peaking capacity to these customers. An interim
operating plan for the Cumberland System provides these customers with
energy that does not include capacity.
Public Notice and Comment
Notice of a proposed rate adjustment was published in the Federal
Register April 11, 2008 (73 FR 19832). The notice advised interested
parties of a public information and comment forum to be held in
Nashville, Tennessee on May 22, 2008. Written comments were accepted on
or before July 10, 2008. Written comments were received from six
sources pursuant to this notice.
Comment 1: There is concern * * * whether the amounts included for
Corps Operation and Maintenance (``O&M'') expense are appropriate
forecasts in light of potential budget cuts in Corps appropriations in
Fiscal Year 2009.
The Southeastern Federal Power Customers, Inc. (``SeFPC'' or
``Customers'') has frequently questioned whether the amounts for Corps
O&M and at times renewals and replacements, in a proposed rate are
appropriate when Congress appears poised to reduce the funding levels
for these precise activities. In particular, the Customers have not
wanted to pay more in rates than what the Corps will receive from
Congress for O&M and renewals and replacement activity. Therefore, the
Customers encourage SEPA to examine closely the proposed O&M
projections to ensure that they appropriately align with anticipated
appropriations.
Response 1: The Corps provides O&M estimates to Southeastern
annually. The customers have an opportunity to review the Corps'
estimated and actual costs annually through the O&M committee of the
SeFPC. Southeastern believes that the estimates are the best available.
Comment 2: * * * the SeFPC suggests that SEPA develop a
consultation and related true-up process for implementing a rate in the
event that capacity is made available. Under the consultation and true-
up process suggested * * * SEPA would consult with preference customers
regarding available capacity to market to all existing customers of the
Cumberland River Basin projects. The consultation could involve a
meeting or conference call or some other communication depending upon
the immediacy of the available capacity. During this conference with
the customers, SEPA would explain how it intends to market the capacity
and how it would recover the necessary revenues. At or around this
time, the customers could suggest how the marketing of the capacity
could be adjusted, including offering comments as suitable on the
appropriate pricing for capacity and energy. SEPA would consider the
input from the customers and make modifications as deemed appropriate
for the implementation of the interim rate for capacity and energy
sales.
To remain true to the proposed rate, the Customers recommend that
SEPA evaluate the sales of capacity and energy on an ongoing, yet
practical, basis to determine whether the capacity and energy delivered
was consistent with the projections used to develop the rates under
rate Alternative Two. In the event that there is a significant
deviation in the amount of delivered capacity and energy from the
projections used to prepare the rate, SEPA would again consult with the
customers. As appropriate, SEPA would change the interim rate for the
capacity and energy sales to ensure that the delivery of the benefits
of the projects remains consistent with the underlying marketing plan
for the Cumberland System of Projects.
Response 2: Southeastern will consult with Cumberland System
customers on any marketing arrangements and rate design matters
involved in the rates under Alternative Two. The consultation could
include meetings, conference calls, or some other communications
depending on the immediacy of the available capacity. Southeastern will
consider the input from the customers and make modifications
Southeastern deems appropriate for the implementation of the interim
rate for capacity and energy sales.
Southeastern does not believe a true-up mechanism is appropriate or
necessary for the rates that may be established under Alternative Two.
Southeastern evaluates and monitors all sales of capacity and energy on
an ongoing, continuous basis and makes changes when Southeastern
determines they are appropriate.
Comment 3: South Mississippi Electric Power Association (``SMEPA'')
encourages SEPA to examine closely the proposed rate increase and keep
it to the absolute minimum required to satisfy SEPA revenue
requirements.
Response 3: Under the Flood Control Act of 1944 (``Act''),
Southeastern is required to market power at the lowest possible rates
consistent with sound business principles. The Administrator
[[Page 54575]]
has certified that the proposed rates satisfy this requirement of the
Act.
Comment 4: East Kentucky Power Cooperative (``EKPC'') submits that
SEPA is not purchasing firm transmission service for the 70 MW at the
Laurel Dam facility; therefore, EKPC should not have to pay a firm TVA
transmission service charge for that capacity.
Response 4: By contract, under normal operating conditions, EKPC
will receive 170 MW from the Cumberland projects. Delivery of EKPC's
allocation is not limited to the operations of any Cumberland project.
The output of the Laurel Project, which is in EKPC's control area, is
supplemented by energy and capacity from the Cumberland Projects in
TVA's control area. Southeastern believes it is appropriate to continue
to recover the TVA transmission charge from EKPC's full allocation.
Comment 5: It is TVA's understanding that there were certain errors
in the financial information set forth in Exhibit 5 of SEPA's rate
change support materials. Those errors in turn resulted in errors in
the calculation of the published proposed rate changes for TVA and for
SEPA's other Cumberland System customers. It is TVA's understanding
that SEPA is aware of those errors and intends to correct them.
Accordingly, TVA's forbearance of raising objections to the
proposed rate changes is based on TVA's expectation that these
corrections will be made such that the new rates to be paid by all
SEPA's Cumberland System customers will be increased by approximately
the same 4.9 per centum consistent with SEPA's own policies for such
rate changes regarding the Cumberland System of Projects.
Response 5: Southeastern has corrected certain errors in the rate
design of the proposed rates under Alternative Three. After correcting
the errors, the rate adjustment is about five percent (5%) for all
Cumberland customers except those in Carolina Power & Light, Western
Division (``CP&L''). The CP&L area customers' increase is less because
the CP&L transmission rate has not changed.
Comment 6: The purpose for the proposed rate changes cannot be
achieved unless the Corps, SEPA, and the Cumberland System customers
reach agreement upon and implement Memorandums of Agreement (``MOAs'')
sufficient to cover each and all of Fiscal Years 2008 through 2028 and
related Sub-agreements. Accordingly, TVA's forbearance of raising
objections to the proposed rate changes is based on TVA's expectation
that MOAs and related Sub-agreements * * * will be executed and
appropriately implemented.
The Tennessee Valley Public Power Association (``TVPPA'')
respectfully recommends that unless and until the United States Army
Corps of Engineers (``USACE''), the Southeastern Power Administration
(``SEPA'') and the Cumberland System Customers of SEPA have reached an
agreement with a specific understanding as to amount and duration for
rehabilitation and replacement work on the USACE hydroelectric projects
on the Cumberland System, that the rate increase should not be
implemented.
Response 6: Southeastern is required to include estimates of
replacements and additions in the repayment study to support the
proposed rate schedules. Southeastern believes the estimates of
replacements and additions included in this rate adjustment are the
best available. Southeastern believes this rate adjustment would be
necessary independent of the implementation of MOAs and related Sub-
agreements.
Discussion
System Repayment
An examination of Southeastern's revised system power repayment
study, prepared in July 2008, for the Cumberland System, shows that
with the proposed rates, all system power costs are paid within the 50-
year repayment period required by existing law and DOE Order RA 6120.2.
The Administrator of Southeastern has certified that the rates are
consistent with applicable law and that they are the lowest possible
rates to customers consistent with sound business principles.
Environmental Impact
Southeastern has reviewed the possible environmental impacts of the
rate adjustment under consideration and has concluded that, because the
adjusted rates would not significantly affect the quality of the human
environment within the meaning of the National Environmental Policy Act
of 1969, the proposed action is not a major Federal action for which
preparation of an Environmental Impact Statement is required.
Availability of Information
Information regarding these rates, including studies, and other
supporting materials, is available for public review in the offices of
Southeastern Power Administration, 1166 Athens Tech Road, Elberton,
Georgia 30635-6711.
Submission to the Federal Energy Regulatory Commission
The rates hereinafter confirmed and approved on an interim basis,
together with supporting documents, will be submitted promptly to FERC
for confirmation and approval on a final basis, ending no later than
September 30, 2013.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm and approve on an
interim basis, effective October 1, 2008, attached Wholesale Power Rate
Schedules CBR-1-G, CSI-1-G, CEK-1-G, CM-1-G, CC-1-H, CK-1-G, CTV-1-G,
and Replacement-3. The rate schedules shall remain in effect on an
interim basis through September 30, 2013, unless such period is
extended or until FERC confirms and approves them or substitute rate
schedules on a final basis.
Dated: September 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
Wholesale Power Rate Schedule CBR-1-G
Availability
This rate schedule shall be available to Big Rivers Electric
Corporation and includes the City of Henderson, Kentucky, (hereinafter
called the Customer).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 13,800 volts and
161,000 volts to the transmission system of Big Rivers Electric
Corporation.
Points of Delivery
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be
[[Page 54576]]
agreed upon by the Government and TVA.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment, and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of TVA on its side of the delivery
point.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
Big Rivers Electric Corporation--32.660%
City of Henderson, Kentucky--2.202%
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand.
Energy Charge
None.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all SEPA
customers outside TVA and served by TVA does not exceed 240 hours per
kilowatt of the total contract demands of these customers.
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[[Page 54577]]
[GRAPHIC] [TIFF OMITTED] TN22SE08.000
Wholesale Power Rate Schedule CSI-1-G
Availability
This rate schedule shall be available to Southern Illinois Power
Cooperative (hereinafter the Customer).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 13,800 volts and
161,000 volts to the transmission system of Big Rivers Electric
Corporation.
Points of Delivery
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be agreed
upon by the Government and TVA.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay 5.138 percent of the credit the Administrator
of Southeastern Power Administration (Administrator) provides to the
Tennessee Valley Authority (TVA) as consideration for delivering
capacity and energy for the account of the Administrator to points of
delivery of Other Customers or interconnection points of delivery with
other electric systems for the benefit of Other Customers, as agreed by
contract between the Administrator and TVA.
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand.
Energy Charge
None.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all SEPA
customers outside TVA and served by TVA does not exceed 240 hours per
kilowatt of the total contract demands of these customers.
[[Page 54578]]
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.001
Wholesale Power Rate Schedule CEK-1-G
Availability
This rate schedule shall be available to East Kentucky Power
Cooperative (hereinafter called the Customer).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and power available from the Laurel
Project and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of the Customer.
Points of Delivery
The points of delivery will be the 161,000 volt bus of the Wolf
Creek Power Plant and the 161,000 volt bus of the Laurel Project. Other
points of delivery may be as agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of TVA on its side of the delivery
point.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U. S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay 31.192 percent of the credit the
Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered from Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$2.364 per kilowatt/month of total contract demand.
[[Page 54579]]
Energy Charge
9.392 mills per kilowatt-hour.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand plus 369 kilowatt-hours of energy delivered for each
kilowatt of contract demand to supplement energy available at the
Laurel Project. A contract year is defined as the 12 months beginning
July 1 and ending at midnight June 30 of the following calendar year.
The energy made available for a contract year shall be scheduled
monthly such that the maximum amount scheduled in any month shall not
exceed 240 hours per kilowatt of the customer's contract demand and the
minimum amount scheduled in any month shall not be less than 60 hours
per kilowatt of the customer's contract demand. The customer may
request and the Government may approve energy scheduled for a month
greater than 240 hours per kilowatt of the customer's contract demand;
provided, that the combined schedule of all SEPA customers outside TVA
and served by TVA does not exceed 240 hours per kilowatt of the total
contract demands of these customers.
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.002
Wholesale Power Rate Schedule CM-1-G
Availability
This rate schedule shall be available to the South Mississippi
Electric Power Association, Municipal Energy Agency of Mississippi, and
Mississippi Delta Energy Agency (hereinafter called the Customers).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Mississippi Power and Light.
Points of Delivery
The points of delivery will be at interconnection points of the
Tennessee Valley Authority system and the Mississippi Power and Light
system. Other points of delivery may be as agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
Mississippi Delta Energy Agency--2.058%
Municipal Energy Agency of Mississippi--3.447%
South Mississippi EPA--9.358%
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from
[[Page 54580]]
capacity that can be scheduled and the remainder from energy, at
charges that will be determined at the time. Under alternative 2, the
cost of the TVA transmission credit will be passed to customers outside
the TVA System. This rate alternative will be in effect when the Corps
modifies operation of the Wolf Creek Project and the Center Hill
Project to allow some of the capacity scheduled. When the lake level
rises and capacity is available, the capacity will be allocated on an
interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand.
Energy Charge
None.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
Customer from the Projects through the Customer's interconnections with
TVA and the Customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the Customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the Customer's contract demand. The
Customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the Customer's
contract demand; provided, that the combined schedule of all SEPA
Customers outside TVA and served by TVA does not exceed 240 hours per
kilowatt of the total contract demands of these Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced 1/12 for each month of that year prior to initial delivery of
such capacity.
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.003
Wholesale Power Rate Schedule CC-1-H
Availability
This rate schedule shall be available to public bodies and
cooperatives served through the facilities of Carolina Power & Light
Company, Western Division (hereinafter called the Customers).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission system of Carolina Power & Light Company, Western
Division.
Points of Delivery
The points of delivery will be at interconnecting points of the
Tennessee Valley Authority system and the Carolina Power & Light
Company, Western Division system. Other points of delivery may be as
agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
[[Page 54581]]
TVA Transmission Charge
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
French Broad EMC--1.713%
Haywood EMC--0.501%
Town of Waynesville--0.355%
CP&L Transmission Charge
The Customer will pay a ratable percent listed below of the charge
for transmission service furnished by Carolina Power & Light Company,
Western Division.
French Broad EMC--66.667%
Haywood EMC--19.512%
Town of Waynesville--13.821%
Energy To Be Furnished by the Government
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less applicable losses). The Customer's
contract demand and accompanying energy allocation will be divided pro
rata among its individual delivery points served from the Carolina
Power & Light Company's Western Division transmission system.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$4.027 per kilowatt/month of total contract demand.
Energy Charge
None.
CP&L Transmission Charge
$1.1022 per kilowatt/month of total contract demand.
The CP&L transmission rate is subject to annual adjustment on April
1 of each year and will be computed subject to the formula in Appendix
A attached to the Government-Carolina Power & Light Company contract.
Energy To Be Furnished by the Government
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less six percent (6%) losses). The
Customer's contract demand and accompanying energy allocation will be
divided pro rata among its individual delivery points served from the
Carolina Power & Light Company's Western Division transmission system.
Wholesale Power Rate Schedule CK-1-G
Availability
This rate schedule shall be available to public bodies served
through the facilities of Kentucky Utilities Company (hereinafter
called the Customers.)
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Kentucky Utilities Company.
Points of Delivery
The points of delivery will be at interconnecting points between
the Tennessee Valley Authority system and the Kentucky Utilities
Company system. Other points of delivery may be as agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
[[Page 54582]]
Transmission Charge
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
City of Barbourville.................................... 0.404%
City of Bardstown....................................... 0.412%
City of Bardwell........................................ 0.099%
City of Benham.......................................... 0.046%
City of Corbin.......................................... 0.477%
City of Falmouth........................................ 0.108%
City of Frankfort....................................... 2.866%
City of Madisonville.................................... 1.432%
City of Nicholasville................................... 0.469%
City of Owensboro....................................... 4.587%
City of Paris........................................... 0.250%
City of Providence...................................... 0.226%
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand
Energy Charge
None.
Additional Energy Charge
9.392 mills per kilowatt-hour.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
Customer from the Projects and the Customer will accept an allocation
of 1500 kilowatt-hours of energy for each kilowatt of contract demand.
A contract year is defined as the 12 months beginning July 1 and ending
at midnight June 30 of the following calendar year. The energy made
available for a contract year shall be scheduled monthly such that the
maximum amount scheduled in any month shall not exceed 240 hours per
kilowatt of the Customer's contract demand and the minimum amount
scheduled in any month shall not be less than 60 hours per kilowatt of
the Customer's contract demand. The Customer may request and the
Government may approve energy scheduled for a month greater than 240
hours per kilowatt of the Customer's contract demand; provided, that
the combined schedule of all SEPA Customers outside TVA and served by
TVA does not exceed 240 hours per kilowatt of the total contract
demands of these Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
For billing purposes, each kilowatt of capacity will include 1500
kilowatt-hours energy per year. Customers will pay for additional
energy at the additional energy rate.
Wholesale Power Rate Schedule CTV-1-G
Availability
This rate schedule shall be available to the Tennessee Valley
Authority (hereinafter called TVA).
Applicability
This rate schedule shall be applicable to electric capacity and
energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old
Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereafter called collectively the
``Cumberland Projects'') and the Laurel Project sold under agreement
between the Department of Energy and TVA.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a frequency of approximately 60 Hertz at
the outgoing terminals of the Cumberland Projects' switchyards.
Billing Month
The billing month for capacity and energy sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Contract Year
For purposes of this rate schedule, a contract year shall be as in
Section 13.1 of the Southeastern Power Administration--Tennessee Valley
Authority Contract.
Power Factor
TVA shall take capacity and energy from the Department of Energy at
such power factor as will best serve TVA's system from time to time;
provided, that TVA shall not impose a power factor of less than .85
lagging on the Department of Energy's facilities which requires
operation contrary to good operating practice or results in overload or
impairment of such facilities.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U. S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide
[[Page 54583]]
these customers with energy that did not include capacity. The rates
under Alternative 1 will remain in effect for the duration of the
Interim Operating Plan.
Monthly Rates
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Energy To Be Made Available
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$2.072 per kilowatt/month of total contract demand.
Energy Charge
None.
Additional Energy Charge
9.392 mills per kilowatt-hour.
Energy To Be Made Available
The Department of Energy shall determine the energy that is
available from the projects for declaration in the billing month.
To meet the energy requirements of the Department of Energy's
customers outside the TVA area (hereinafter called Other Customers),
768,000 megawatt-hours of net energy shall be available annually
(including 36,900 megawatt-hours of annual net energy to supplement
energy available at Laurel Project). The energy requirement of the
Other Customers shall be available annually, divided monthly such that
the maximum available in any month shall not exceed 240 hours per
kilowatt of total Other Customers contract demand, and the minimum
amount available in any month shall not be less than 60 hours per
kilowatt of total Other Customers demand.
In the event that any portion of the capacity allocated to Other
Customers is not initially delivered to the Other Customers as of the
beginning of a full contract year, (July through June), the 1500 hours,
plus any such additional energy required as discussed above, shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
The energy scheduled by TVA for use within the TVA System in any
billing month shall be the total energy delivered to TVA less (1) an
adjustment for fast or slow meters, if any, (2) an adjustment for
Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month
which is delivered to TVA under the agreement from the Cumberland
Projects without charge to TVA, (3) the energy scheduled by the
Department of Energy in said month for the Other Customers plus losses
of two (2) percent, and (4) station service energy furnished by TVA.
Each kilowatt of capacity will include 1500 kilowatt-hours of
energy per year, which is defined as base energy. Energy received in
excess of 1500 kilowatt-hours per kilowatt will be subject to an
additional energy charge identified in the monthly rates section of
this rate schedule.
Service Interruption
When delivery of capacity to TVA is interrupted or reduced due to
conditions on the Department of Energy's system that are beyond its
control, the Department of Energy will continue to make available the
portion of its declaration of energy that can be generated with the
capacity available.
For such interruption or reduction (exclusive of any restrictions
provided in the agreement) due to conditions on the Department of
Energy's system which have not been arranged for and agreed to in
advance, the demand charge for scheduled capacity made available to TVA
will be reduced as to the kilowatts of such scheduled capacity which
have been so interrupted or reduced for each day in accordance with the
following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.004
Wholesale Rate Schedule Replacement--3
Availability
This rate schedule shall be available to public bodies and
cooperatives ( any one of whom is hereinafter called the Customer) in
Virginia, North Carolina, Tennessee, Georgia, Alabama, Mississippi,
Kentucky and southern Illinois to whom power is provided pursuant to
contracts between the Government and the customer from the Dale Hollow,
Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy
Priest, Cordell Hull, and Laurel Projects (all of such projects being
hereinafter called collectively the ``Cumberland Projects'').
Applicability
This rate schedule shall be applicable to the sale of wholesale
energy purchased to meet contract minimum energy sold under appropriate
contracts between the Government and the Customer.
[[Page 54584]]
Character of Service
The energy supplied hereunder will be delivered at the delivery
points provided for under appropriate contracts between the Government
and the Customer.
Monthly Charge
The rate for replacement energy will be a formulary capacity charge
based on the monthly cost to the Government to purchase replacement
energy necessary to support capacity in the Cumberland System divided
by the capacity available from the Cumberland System, which is 950,000
kilowatts in the published power marketing policy. The capacity rate
will be adjusted for any capacity retained by the Customer's
transmission facilitator.
Conditions of Service
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system.
[FR Doc. E8-22097 Filed 9-19-08; 8:45 am]
BILLING CODE 6450-01-P
