Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-147, 34012-34014 [E9-16690]
Download as PDF
<![CDATA[
34012
Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices
be categorically excluded from those
requirements.
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Dated: June 29, 2009.
Timothy J. Meeks,
Administrator.
[FR Doc. E9–16689 Filed 7–13–09; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program—
Eastern Division—Rate Order No.
WAPA–147
mstockstill on DSKH9S0YB1PROD with NOTICES
AGENCY: Western Area Power
Administration, DOE.
ACTION: Notice of Proposed Power Rates.
SUMMARY: The Western Area Power
Administration (Western) is proposing
revised rates for Pick-Sloan Missouri
Basin Program—Eastern Division (P–
SMBP—ED) firm electric and firm
peaking power service. Current rates,
under Rate Schedules P–SED–F10 and
P–SED–FP10, extend through December
31, 2013, but are not sufficient to meet
the P–SMBP—ED revenue requirements.
The proposed rates will provide
sufficient revenue to pay all annual
costs, including interest expense, and
repay investments within the allowable
periods. Western will prepare and make
available a brochure that provides
detailed information on the proposed
rates. The proposed rates, under Rate
Schedules P–SED–F11 and P–SED–
FP11, would go into effect on January 1,
2010, and would remain in effect
through December 31, 2014, or until
superseded. Publication of this Federal
Register notice begins the formal
process for the proposed rate
adjustment.
DATES: The consultation and comment
period begins today and will end
October 13, 2009. Western will present
a detailed explanation of the proposed
rates at public information forums.
Public information forum dates are:
1. August 18, 2009, 9 a.m. to 10:30
a.m. MDT, Northglenn, Colorado.
2. August 19, 2009, 9 a.m. to 10:30
a.m. CDT, Sioux Falls, South Dakota.
VerDate Nov<24>2008
17:50 Jul 13, 2009
Jkt 217001
Western will accept oral and written
comments at public comment forums.
Public comment forums will be held on
the following dates:
1. August 18, 2009, 11 a.m. to no later
than 12 noon MDT, Northglenn,
Colorado.
2. August 19, 2009, 11 a.m. to no later
than 12 noon CDT, Sioux Falls, South
Dakota.
Western will accept written
comments any time during the
consultation and comment period.
ADDRESSES: Written comments and/or
requests to be informed of Federal
Energy Regulatory Commission (FERC)
actions concerning the rates submitted
by Western to FERC for approval should
be sent to Mr. Robert J. Harris, Regional
Manager, Upper Great Plains Region,
Western Area Power Administration,
2900 4th Avenue North, Billings, MT
59101–1266, or e-mail at
ugpfirmrate@wapa.gov. Western will
post information about the rate process
on its Web site at https://www.wapa.gov/
ugp/rates/2010firmrateadjust. Western
will post comments received via letter
and e-mail to its Web site after the close
of the comment period. Written
comments must be received by the end
of the consultation and comment period
to be considered by Western in its
decision process.
Public information and comment
forum locations are:
1. Northglenn—Ramada Plaza Hotel,
10 East 120th Avenue, Northglenn,
Colorado.
2. Sioux Falls—Holiday Inn, 100 West
8th Street, Sioux Falls, South Dakota.
FOR FURTHER INFORMATION CONTACT: Ms.
Linda Cady-Hoffman, Rates Manager,
Upper Great Plains Region, Western
Area Power Administration, 2900 4th
Avenue North, Billings, MT 59101–
1266, telephone (406) 247–7439, e-mail
cady@wapa.gov.
SUPPLEMENTARY INFORMATION: The
proposed rates for P-SMBP—ED firm
electric and firm peaking service are
designed to recover an annual revenue
requirement that includes investment
repayment, interest, purchase power,
operation and maintenance, and other
expenses.
The Acting Deputy Secretary of
Energy approved existing Rate
Schedules P–SED–F10 and P–SED–FP10
for firm electric and firm peaking
service on an interim basis on January
8, 2009 (74 FR, 3022, January 16, 2009),
for a 5-year period beginning on
February 1, 2009, and ending December
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
31, 2013, or until superseded. FERC
confirmed and approved those Rate
Schedules on a final basis on April 28,
2009.1 Under Rate Schedule P–SED–F10
effective February 1, 2009, the
composite rate is 29.34 mills per
kilowatthour (mills/kWh), the firm
energy rate is 16.71 mills/kWh, and the
firm capacity rate is $6.80 per
kilowattmonth (kWmonth). The
projected revenue requirement for firm
electric service is allocated equally
between capacity and energy. Under
Rate Schedule P–SED–FP10 effective
February 1, 2009, the firm peaking
capacity rate is $6.20/kWmonth. These
Rate Schedules are formula-based,
providing for an increase in the Drought
Adder rate component of up to 2 mills/
kWh without a formal public process.
This proposed rate adjustment reflects
a rate increase based on the P–SMBP
Fiscal Year 2008 Power Repayment
Study (PRS). The PRS sets the total
annual P–SMBP—ED revenue
requirement for 2010 for firm electric
and firm peaking power service at
$320.2 million, or a 13.1 percent
increase for a composite rate of 33.25
mills/kWh. The current rates, including
a 2 mills/kWh increase provided for
under the Drought Adder formula rate
component, are not sufficient to meet
the P–SMBP—ED revenue requirements.
Given the need for a Base rate
component increase and the size of the
Drought Adder rate component increase,
Western is required to initiate a formal
public process.2 Western has prepared
the proposed rate schedules for firm
electric service (P–SED–F11) and firm
peaking service (P–SED–FP11) for
consideration and comment during this
public process. A comparison of the
existing revenue requirement and rates
and the proposed revenue requirement
and rates under P–SED–F11 and P–
SED–FP11 is listed in Table 1.
1 FERC confirmed and approved Rate Order No.
WAPA–140 on April 28, 2009, in Docket No. EF09–
5031–000. See United States Department of Energy,
Western Area Power Administration, Pick-Sloan
Missouri Basin Program, 127 FERC ¶62075 (April
28, 2009).
2 Under the current Rate Schedules, Western had
the option of increasing the Drought Adder rate
component by up to 2 mills/kWh outside of a
formal public process and only initiating the formal
public process for the Base rate component increase
and the incremental increase of the Drought Adder
rate component above 2 mills/kWh. Instead,
Western has opted to initiate the formal public
process for this rate increase.
E:\FR\FM\14JYN1.SGM
14JYN1
34013
Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices
TABLE 1—P–SMBP—ED FIRM ELECTRIC AND FIRM PEAKING POWER SERVICE REVENUE REQUIREMENT AND RATES
Firm electric service
Existing rates as of Feb. 1, 2009
Proposed rates Jan. 1, 2010
Firm and Firm Peaking Revenue Requirement ...................
Composite Rate ....................................................................
Firm Capacity Rate ...............................................................
Firm Energy Rate .................................................................
Firm Peaking Capacity Rate ................................................
Firm Peaking Energy Rate 1 .................................................
$283.0 million .................................
29.34 mills/kWh ..............................
$6.80/kWmonth ..............................
16.71 mills/kWh ..............................
$6.20/kWmonth ..............................
16.71 mills/kWh ..............................
Percent
change
$320.2 million .................................
33.25 mills/kWh ..............................
$7.65/kWmonth ..............................
19.05 mills/kWh ..............................
$6.90/kWmonth ..............................
19.05 mills/kWh ..............................
1 Firm
13.1
13.3
12.5
14.0
11.3
14.0
peaking energy is normally returned. This will be assessed in the event firm peaking energy is not returned.
Under Rate Schedule P–SED–F11,
Western is proposing to continue to
identify its firm electric service revenue
requirement using Base and Drought
Adder rate components and provide for
an annual increase in the Drought
Adder rate component of up to 2 mills/
kWh. The Base rate component is a
revenue requirement that includes
annual operation and maintenance
expenses, investment repayment and
associated interest, normal timing
power purchases, and transmission
costs. Western’s normal timing power
purchases are due to operational
constraints (e.g., management of
endangered species habitat, water
quality, navigation, etc.) and are not
associated with the current drought. The
Drought Adder rate component is a
formula-based revenue requirement that
includes costs attributable to the past
and present drought conditions. The
Drought Adder rate component includes
costs associated with future non-timing
purchases of additional power to firm
obligations not covered with available
system generation due to the drought,
previously incurred deficits due to
purchased power debt that resulted
from non-timing power purchases made
during this drought, and the interest
associated with the previously incurred
and future drought debt. The Drought
Adder rate component is designed to
repay Western’s drought debt within 10
years from the time the debt was
incurred, using balloon-payment
methodology. For example, the drought
debt incurred by Western in 2008 will
be repaid by 2018.
The annual revenue requirement
calculation will continue to be
summarized by the following formula:
Annual Revenue Requirement = Base
Revenue Requirement + Drought Adder
Revenue Requirement. Under this
proposal, effective January 1, 2010, the
P–SMBP—ED annual revenue
requirement equals $332.8 million and
is comprised of a Base revenue
requirement of $166.0 million plus a
Drought Adder revenue requirement of
$166.8 million. Both the Base and
Drought Adder rate components recover
portions of the firm power revenue
requirement, firm peaking power, and
associated 5 percent discount revenue
necessary to equal the P–SMBP—ED
revenue requirement. A comparison of
the current and proposed rate
components is listed in Table 2.
TABLE 2—SUMMARY OF P–SMBP—ED RATE COMPONENTS
Existing rates as of February 1, 2009
Base rate
component
Firm
Firm
Firm
Firm
$3.80
9.27
$3.40
9.27
$3.00
7.44
$2.80
7.44
Capacity Rate (/kWmonth) ......................................
Energy Rate (mills/kWh) ..........................................
Peaking Capacity Rate (/kWmonth) ........................
Peaking Energy Rate (mills/kWh)1 ..........................
1Firm
mstockstill on DSKH9S0YB1PROD with NOTICES
Drought
Adder rate
component
Proposed rates January 1, 2010
Base rate
component
Total
$6.80
16.71
$6.20
16.71
Drought
Adder rate
component
$3.80
9.53
$3.45
9.53
$3.85
9.52
$3.45
9.52
Total
$7.65
19.05
$6.90
19.05
peaking energy is normally returned. This will be assessed in the event firm peaking energy is not returned.
As set forth in Table 2 above, under
proposed Rate Schedule P–SED–FP11,
the firm peaking capacity rate will
increase to $6.90/kWmonth, or an 11.3
percent increase for the proposed
January 1, 2010, rate adjustment.
Peaking energy is either returned to
Western or paid for in accordance with
the terms of the contract between
Western and the peaking power
customer.
Continuing to identify the firm
electric service revenue requirement
using Base and Drought Adder rate
components will assist Western in the
presentation of the impacts of the
drought within the Pick-Sloan Program,
demonstrate repayment of the drought
related costs in the PRS, and allow
VerDate Nov<24>2008
17:50 Jul 13, 2009
Jkt 217001
Western to be more responsive to
changes in drought related expenses.
Western will continue to charge and bill
its customers firm electric service rates
for energy and capacity, which are the
sum of the Base and Drought Adder rate
components.
Western reviews its firm electric
service rates annually. Western will
review the Base rate component after
the annual PRS is completed, generally
in the first quarter of the calendar year.
If an adjustment to the Base rate
component is necessary, Western will
initiate a public process pursuant to 10
CFR part 903 prior to making an
adjustment.
In accordance with the original
implementation of the Drought Adder
PO 00000
Frm 00026
Fmt 4703
Sfmt 4703
rate component, Western will continue
to review the Drought Adder rate
component each September to
determine if drought costs differ from
those projected in the PRS, and, if so,
whether an adjustment, either
incremental or decremental, to the
Drought Adder rate component is
necessary. Western will notify
customers by letter in October of the
planned incremental or decremental
adjustment and implement the
adjustment in the January billing cycle.
Although decremental adjustments to
the Drought Adder rate component will
occur as drought costs are repaid, the
adjustments cannot result in a negative
Drought Adder rate component. To give
customers advance notice, Western will
E:\FR\FM\14JYN1.SGM
14JYN1
34014
Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
conduct a preliminary review of the
Drought Adder rate component in early
summer and notify customers by letter
of the estimated change to the Drought
Adder rate component for the following
January, with the final Drought Adder
rate component adjustment verified
with notification in the October letter to
the customers. Implementing the
Drought Adder rate component
adjustment on January 1 of each year
will help keep the drought deficits from
escalating as quickly, will lower the
interest expense due to drought deficits,
will demonstrate responsible deficit
management, and will provide prompt
drought deficit repayments.
As a part of the current and proposed
rate schedules, Western provides for a
formula-based adjustment of the
Drought Adder rate component of up to
2 mills/kWh. The 2 mills/kWh cap is
intended to place a limit on the amount
the Drought Adder formula can be
adjusted relative to associated drought
costs without having to go through a
public process to recover costs
attributable to the Drought Adder
formula rate for any 1-year cycle.
Legal Authority
Since the proposed rates constitute a
major rate adjustment as defined by 10
CFR part 903, Western will hold public
information forums and public
comment forums. Western will review
all timely public comments and make
amendments or adjustments to the
proposal as appropriate. Proposed rates
will be forwarded to the Deputy
Secretary of Energy for approval on an
interim basis.
Western is establishing firm electric
service and peaking rates for P–SMBP—
ED under the Department of Energy
Organization Act (42 U.S.C. 7152); the
Reclamation Act of 1902 (ch. 1093, 32
Stat. 388), as amended and
supplemented by subsequent laws,
particularly section 9(c) of the
Reclamation Project Act of 1939 (43
U.S.C. 485h(c)); section 5 of the Flood
Control Act of 1944 (16 U.S.C. 825s);
and other acts that specifically apply to
the projects involved.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to Western’s
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand,
or to disapprove such rates to FERC.
Existing DOE procedures for public
participation in power rate adjustments
VerDate Nov<24>2008
17:50 Jul 13, 2009
Jkt 217001
(10 CFR part 903) were published on
September 18, 1985.
Availability of Information
All brochures, studies, comments,
letters, memorandums, or other
documents that Western initiates or uses
to develop the proposed rates are
available for inspection and copying at
the Upper Great Plains Regional Office,
located at 2900 4th Avenue North,
Billings, Montana. Many of these
documents and supporting information
are also available on Western’s Web site
under the ‘‘2010 Firm Rate Adjustment’’
section located at https://www.wapa.gov/
ugp/rates/2010firmrateadjust.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National
Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321–4347), Council on
Environmental Quality Regulations (40
CFR parts 1500–1508), and DOE NEPA
Regulations (10 CFR part 1021), Western
is in the process of determining whether
an environmental assessment or an
environmental impact statement should
be prepared or if this action can be
categorically excluded from those
requirements.
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Dated: June 29, 2009.
Timothy J. Meeks,
Administrator.
[FR Doc. E9–16690 Filed 7–13–09; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL COMMUNICATIONS
COMMISSION
Notice of Public Information
Collection(s) Being Reviewed by the
Federal Communications Commission
for Extension Under Delegated
Authority, Comments Requested
June 30, 2009.
SUMMARY: As part of its continuing effort
to reduce paperwork burden and as
required by the Paperwork Reduction
Act (PRA) of 1995 (44 U.S.C. 3501–
3520), the Federal Communications
Commission invites the general public
and other Federal agencies to comment
on the following information
collection(s). Comments are requested
concerning (a) whether the proposed
collection of information is necessary
PO 00000
Frm 00027
Fmt 4703
Sfmt 4703
for the proper performance of the
functions of the Commission, including
whether the information shall have
practical utility; (b) the accuracy of the
Commission’s burden estimate; (c) ways
to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
An agency may not conduct or sponsor
a collection of information unless it
displays a currently valid OMB control
number. No person shall be subject to
any penalty for failing to comply with
a collection of information subject to the
Paperwork Reduction Act that does not
display a valid OMB control number.
DATES: Written PRA comments should
be submitted on or before September 14,
2009. If you anticipate that you will be
submitting comments but find it
difficult to do so within the period of
time allowed by this notice, you should
advise the contact listed below as soon
as possible.
ADDRESSES: Submit your comments by
e-mail to PRA@fcc.gov. Include in the email the OMB control number of the
collection. If you are unable to submit
your comments by e-mail, contact the
person listed below to make alternate
arrangements.
FOR FURTHER INFORMATION CONTACT: For
additional information about the
information collection(s) or to obtain a
copy of the collection, send an e-mail to
PRA@fcc.gov and include the
collection’s OMB control number as
shown in the SUPPLEMENTARY
INFORMATION section below, or call
Leslie F. Smith at (202) 418–0217.
SUPPLEMENTARY INFORMATION:
OMB Control Number: 3060–0392.
Title: 47 CFR 1 Subpart J—Pole
Attachment Complaint Procedures.
Form Number: Not applicable.
Type of Review: Extension of
currently approved collection.
Respondents: Businesses or other forprofit, and State, Local or Tribal
Government.
Number of Respondents and
Responses: 1,772 respondents; 1,772
responses.
Estimated Time per Response: 0.5 to
100 hours.
Frequency of Response: On occasion
reporting requirement; Third party
disclosure.
Obligation To Respond: Required to
obtain or retain benefits (47 U.S.C. 224).
Total Annual Burden: 2,629 hours.
Total Annual Cost: $450,000.
Privacy Act Impact Assessment: No
privacy impacts.
E:\FR\FM\14JYN1.SGM
14JYN1
]]>Agencies
[Federal Register Volume 74, Number 133 (Tuesday, July 14, 2009)]
[Notices]
[Pages 34012-34014]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16690]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program--Eastern Division--Rate Order
No. WAPA-147
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Power Rates.
-----------------------------------------------------------------------
SUMMARY: The Western Area Power Administration (Western) is proposing
revised rates for Pick-Sloan Missouri Basin Program--Eastern Division
(P-SMBP--ED) firm electric and firm peaking power service. Current
rates, under Rate Schedules P-SED-F10 and P-SED-FP10, extend through
December 31, 2013, but are not sufficient to meet the P-SMBP--ED
revenue requirements. The proposed rates will provide sufficient
revenue to pay all annual costs, including interest expense, and repay
investments within the allowable periods. Western will prepare and make
available a brochure that provides detailed information on the proposed
rates. The proposed rates, under Rate Schedules P-SED-F11 and P-SED-
FP11, would go into effect on January 1, 2010, and would remain in
effect through December 31, 2014, or until superseded. Publication of
this Federal Register notice begins the formal process for the proposed
rate adjustment.
DATES: The consultation and comment period begins today and will end
October 13, 2009. Western will present a detailed explanation of the
proposed rates at public information forums. Public information forum
dates are:
1. August 18, 2009, 9 a.m. to 10:30 a.m. MDT, Northglenn, Colorado.
2. August 19, 2009, 9 a.m. to 10:30 a.m. CDT, Sioux Falls, South
Dakota.
Western will accept oral and written comments at public comment
forums. Public comment forums will be held on the following dates:
1. August 18, 2009, 11 a.m. to no later than 12 noon MDT,
Northglenn, Colorado.
2. August 19, 2009, 11 a.m. to no later than 12 noon CDT, Sioux
Falls, South Dakota.
Western will accept written comments any time during the
consultation and comment period.
ADDRESSES: Written comments and/or requests to be informed of Federal
Energy Regulatory Commission (FERC) actions concerning the rates
submitted by Western to FERC for approval should be sent to Mr. Robert
J. Harris, Regional Manager, Upper Great Plains Region, Western Area
Power Administration, 2900 4th Avenue North, Billings, MT 59101-1266,
or e-mail at ugpfirmrate@wapa.gov. Western will post information about
the rate process on its Web site at https://www.wapa.gov/ugp/rates/2010firmrateadjust. Western will post comments received via letter and
e-mail to its Web site after the close of the comment period. Written
comments must be received by the end of the consultation and comment
period to be considered by Western in its decision process.
Public information and comment forum locations are:
1. Northglenn--Ramada Plaza Hotel, 10 East 120th Avenue,
Northglenn, Colorado.
2. Sioux Falls--Holiday Inn, 100 West 8th Street, Sioux Falls,
South Dakota.
FOR FURTHER INFORMATION CONTACT: Ms. Linda Cady-Hoffman, Rates Manager,
Upper Great Plains Region, Western Area Power Administration, 2900 4th
Avenue North, Billings, MT 59101-1266, telephone (406) 247-7439, e-mail
cady@wapa.gov.
SUPPLEMENTARY INFORMATION: The proposed rates for P-SMBP--ED firm
electric and firm peaking service are designed to recover an annual
revenue requirement that includes investment repayment, interest,
purchase power, operation and maintenance, and other expenses.
The Acting Deputy Secretary of Energy approved existing Rate
Schedules P-SED-F10 and P-SED-FP10 for firm electric and firm peaking
service on an interim basis on January 8, 2009 (74 FR, 3022, January
16, 2009), for a 5-year period beginning on February 1, 2009, and
ending December 31, 2013, or until superseded. FERC confirmed and
approved those Rate Schedules on a final basis on April 28, 2009.\1\
Under Rate Schedule P-SED-F10 effective February 1, 2009, the composite
rate is 29.34 mills per kilowatthour (mills/kWh), the firm energy rate
is 16.71 mills/kWh, and the firm capacity rate is $6.80 per
kilowattmonth (kWmonth). The projected revenue requirement for firm
electric service is allocated equally between capacity and energy.
Under Rate Schedule P-SED-FP10 effective February 1, 2009, the firm
peaking capacity rate is $6.20/kWmonth. These Rate Schedules are
formula-based, providing for an increase in the Drought Adder rate
component of up to 2 mills/kWh without a formal public process.
---------------------------------------------------------------------------
\1\ FERC confirmed and approved Rate Order No. WAPA-140 on April
28, 2009, in Docket No. EF09-5031-000. See United States Department
of Energy, Western Area Power Administration, Pick-Sloan Missouri
Basin Program, 127 FERC ]62075 (April 28, 2009).
---------------------------------------------------------------------------
This proposed rate adjustment reflects a rate increase based on the
P-SMBP Fiscal Year 2008 Power Repayment Study (PRS). The PRS sets the
total annual P-SMBP--ED revenue requirement for 2010 for firm electric
and firm peaking power service at $320.2 million, or a 13.1 percent
increase for a composite rate of 33.25 mills/kWh. The current rates,
including a 2 mills/kWh increase provided for under the Drought Adder
formula rate component, are not sufficient to meet the P-SMBP--ED
revenue requirements. Given the need for a Base rate component increase
and the size of the Drought Adder rate component increase, Western is
required to initiate a formal public process.\2\ Western has prepared
the proposed rate schedules for firm electric service (P-SED-F11) and
firm peaking service (P-SED-FP11) for consideration and comment during
this public process. A comparison of the existing revenue requirement
and rates and the proposed revenue requirement and rates under P-SED-
F11 and P-SED-FP11 is listed in Table 1.
---------------------------------------------------------------------------
\2\ Under the current Rate Schedules, Western had the option of
increasing the Drought Adder rate component by up to 2 mills/kWh
outside of a formal public process and only initiating the formal
public process for the Base rate component increase and the
incremental increase of the Drought Adder rate component above 2
mills/kWh. Instead, Western has opted to initiate the formal public
process for this rate increase.
[[Page 34013]]
Table 1--P-SMBP--ED Firm Electric and Firm Peaking Power Service Revenue
Requirement and Rates
------------------------------------------------------------------------
Existing rates
Firm electric service as of Feb. 1, Proposed rates Percent
2009 Jan. 1, 2010 change
------------------------------------------------------------------------
Firm and Firm Peaking $283.0 million. $320.2 million. 13.1
Revenue Requirement.
Composite Rate.............. 29.34 mills/kWh 33.25 mills/kWh 13.3
Firm Capacity Rate.......... $6.80/kWmonth.. $7.65/kWmonth.. 12.5
Firm Energy Rate............ 16.71 mills/kWh 19.05 mills/kWh 14.0
Firm Peaking Capacity Rate.. $6.20/kWmonth.. $6.90/kWmonth.. 11.3
Firm Peaking Energy Rate \1\ 16.71 mills/kWh 19.05 mills/kWh 14.0
------------------------------------------------------------------------
\1\ Firm peaking energy is normally returned. This will be assessed in
the event firm peaking energy is not returned.
Under Rate Schedule P-SED-F11, Western is proposing to continue to
identify its firm electric service revenue requirement using Base and
Drought Adder rate components and provide for an annual increase in the
Drought Adder rate component of up to 2 mills/kWh. The Base rate
component is a revenue requirement that includes annual operation and
maintenance expenses, investment repayment and associated interest,
normal timing power purchases, and transmission costs. Western's normal
timing power purchases are due to operational constraints (e.g.,
management of endangered species habitat, water quality, navigation,
etc.) and are not associated with the current drought. The Drought
Adder rate component is a formula-based revenue requirement that
includes costs attributable to the past and present drought conditions.
The Drought Adder rate component includes costs associated with future
non-timing purchases of additional power to firm obligations not
covered with available system generation due to the drought, previously
incurred deficits due to purchased power debt that resulted from non-
timing power purchases made during this drought, and the interest
associated with the previously incurred and future drought debt. The
Drought Adder rate component is designed to repay Western's drought
debt within 10 years from the time the debt was incurred, using
balloon-payment methodology. For example, the drought debt incurred by
Western in 2008 will be repaid by 2018.
The annual revenue requirement calculation will continue to be
summarized by the following formula: Annual Revenue Requirement = Base
Revenue Requirement + Drought Adder Revenue Requirement. Under this
proposal, effective January 1, 2010, the P-SMBP--ED annual revenue
requirement equals $332.8 million and is comprised of a Base revenue
requirement of $166.0 million plus a Drought Adder revenue requirement
of $166.8 million. Both the Base and Drought Adder rate components
recover portions of the firm power revenue requirement, firm peaking
power, and associated 5 percent discount revenue necessary to equal the
P-SMBP--ED revenue requirement. A comparison of the current and
proposed rate components is listed in Table 2.
Table 2--Summary of P-SMBP--ED Rate Components
----------------------------------------------------------------------------------------------------------------
Existing rates as of February 1, 2009 Proposed rates January 1, 2010
-----------------------------------------------------------------------------
Drought Drought
Base rate Adder rate Total Base rate Adder rate Total
component component component component
----------------------------------------------------------------------------------------------------------------
Firm Capacity Rate (/kWmonth)..... $3.80 $3.00 $6.80 $3.80 $3.85 $7.65
Firm Energy Rate (mills/kWh)...... 9.27 7.44 16.71 9.53 9.52 19.05
Firm Peaking Capacity Rate (/ $3.40 $2.80 $6.20 $3.45 $3.45 $6.90
kWmonth).........................
Firm Peaking Energy Rate (mills/ 9.27 7.44 16.71 9.53 9.52 19.05
kWh)\1\..........................
----------------------------------------------------------------------------------------------------------------
\1\Firm peaking energy is normally returned. This will be assessed in the event firm peaking energy is not
returned.
As set forth in Table 2 above, under proposed Rate Schedule P-SED-
FP11, the firm peaking capacity rate will increase to $6.90/kWmonth, or
an 11.3 percent increase for the proposed January 1, 2010, rate
adjustment. Peaking energy is either returned to Western or paid for in
accordance with the terms of the contract between Western and the
peaking power customer.
Continuing to identify the firm electric service revenue
requirement using Base and Drought Adder rate components will assist
Western in the presentation of the impacts of the drought within the
Pick-Sloan Program, demonstrate repayment of the drought related costs
in the PRS, and allow Western to be more responsive to changes in
drought related expenses. Western will continue to charge and bill its
customers firm electric service rates for energy and capacity, which
are the sum of the Base and Drought Adder rate components.
Western reviews its firm electric service rates annually. Western
will review the Base rate component after the annual PRS is completed,
generally in the first quarter of the calendar year. If an adjustment
to the Base rate component is necessary, Western will initiate a public
process pursuant to 10 CFR part 903 prior to making an adjustment.
In accordance with the original implementation of the Drought Adder
rate component, Western will continue to review the Drought Adder rate
component each September to determine if drought costs differ from
those projected in the PRS, and, if so, whether an adjustment, either
incremental or decremental, to the Drought Adder rate component is
necessary. Western will notify customers by letter in October of the
planned incremental or decremental adjustment and implement the
adjustment in the January billing cycle. Although decremental
adjustments to the Drought Adder rate component will occur as drought
costs are repaid, the adjustments cannot result in a negative Drought
Adder rate component. To give customers advance notice, Western will
[[Page 34014]]
conduct a preliminary review of the Drought Adder rate component in
early summer and notify customers by letter of the estimated change to
the Drought Adder rate component for the following January, with the
final Drought Adder rate component adjustment verified with
notification in the October letter to the customers. Implementing the
Drought Adder rate component adjustment on January 1 of each year will
help keep the drought deficits from escalating as quickly, will lower
the interest expense due to drought deficits, will demonstrate
responsible deficit management, and will provide prompt drought deficit
repayments.
As a part of the current and proposed rate schedules, Western
provides for a formula-based adjustment of the Drought Adder rate
component of up to 2 mills/kWh. The 2 mills/kWh cap is intended to
place a limit on the amount the Drought Adder formula can be adjusted
relative to associated drought costs without having to go through a
public process to recover costs attributable to the Drought Adder
formula rate for any 1-year cycle.
Legal Authority
Since the proposed rates constitute a major rate adjustment as
defined by 10 CFR part 903, Western will hold public information forums
and public comment forums. Western will review all timely public
comments and make amendments or adjustments to the proposal as
appropriate. Proposed rates will be forwarded to the Deputy Secretary
of Energy for approval on an interim basis.
Western is establishing firm electric service and peaking rates for
P-SMBP--ED under the Department of Energy Organization Act (42 U.S.C.
7152); the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended
and supplemented by subsequent laws, particularly section 9(c) of the
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)); section 5 of the
Flood Control Act of 1944 (16 U.S.C. 825s); and other acts that
specifically apply to the projects involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator; (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Western initiates or uses to develop the proposed rates
are available for inspection and copying at the Upper Great Plains
Regional Office, located at 2900 4th Avenue North, Billings, Montana.
Many of these documents and supporting information are also available
on Western's Web site under the ``2010 Firm Rate Adjustment'' section
located at https://www.wapa.gov/ugp/rates/2010firmrateadjust.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321-4347), Council on Environmental Quality
Regulations (40 CFR parts 1500-1508), and DOE NEPA Regulations (10 CFR
part 1021), Western is in the process of determining whether an
environmental assessment or an environmental impact statement should be
prepared or if this action can be categorically excluded from those
requirements.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Dated: June 29, 2009.
Timothy J. Meeks,
Administrator.
[FR Doc. E9-16690 Filed 7-13-09; 8:45 am]
BILLING CODE 6450-01-P
