Provo River Project Rate Order No. WAPA-149, 6380-6383 [2010-2838]
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Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices
project is considered a ‘‘Comment on a
Filing’’; or
(3) You may file a paper copy of your
comments at the following address:
Kimberly D. Bose, Secretary, Federal
Energy Regulatory Commission, 888
First Street, NE., Room 1A, Washington,
DC 20426.
Environmental Mailing List
The environmental mailing list
includes federal, state, and local
government representatives and
agencies; elected officials;
environmental and public interest
groups; Native American Tribes; other
interested parties; and local libraries
and newspapers. This list also includes
all affected landowners (as defined in
the Commission’s regulations) who are
potential right-of-way grantors, whose
property may be used temporarily for
project purposes, or who own homes
within certain distances of aboveground
facilities, and anyone who submits
comments on the project. We will
update the environmental mailing list as
the analysis proceeds to ensure that we
send the information related to this
environmental review to all individuals,
organizations, and government entities
interested in and/or potentially affected
by the proposed project.
If the EA is published for distribution,
copies will be sent to the environmental
mailing list for public review and
comment. If you would prefer to receive
a paper copy of the document instead of
the CD version, please return the
attached Information Request (appendix
2).
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Becoming an Intervenor
In addition to involvement in the EA
scoping process, you may want to
become an ‘‘intervenor,’’ which is an
official party to the Commission’s
proceeding. Intervenors play a more
formal role in the process and are able
to file briefs, appear at hearings, and be
heard by the courts if they choose to
appeal the Commission’s final ruling.
An intervenor formally participates in
the proceeding by filing a request to
intervene. Instructions for becoming an
intervenor are included in the User’s
Guide under the ‘‘e-filing’’ link on the
Commission’s Web site.
Additional Information
Additional information about the
project is available from the
Commission’s Office of External Affairs,
at (866) 208–FERC, or on the Internet at
https://www.ferc.gov using the ‘‘eLibrary’’
link. Click on the eLibrary link, click on
‘‘General Search’’ and enter the docket
number, excluding the last three digits,
in the Docket Number field (i.e., CP10–
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14:39 Feb 08, 2010
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40). Be sure you have selected an
appropriate date range. For assistance,
please contact FERC Online Support at
FercOnlineSupport@ferc.gov or toll free
at (866) 208–3676, or for TTY, contact
(202) 502–8659. The eLibrary link also
provides access to the texts of formal
documents issued by the Commission,
such as orders, notices, and
rulemakings.
In addition, the Commission now
offers a free service called eSubscription
which allows you to keep track of all
formal issuances and submittals in
specific dockets. This can reduce the
amount of time you spend researching
proceedings by automatically providing
you with notification of these filings,
document summaries and direct links to
the documents. Go to https://
www.ferc.gov/esubscribenow.htm.
Finally, public meetings or site visits
will be posted on the Commission’s
calendar located at https://www.ferc.gov/
EventCalendar/EventsList.aspx along
with other related information.
Kimberly D. Bose,
Secretary.
[FR Doc. 2010–2730 Filed 2–8–10; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Provo River Project Rate Order No.
WAPA–149
AGENCY: Western Area Power
Administration, DOE.
ACTION: Notice of Rate Order Concerning
a Power Rate Formula.
SUMMARY: The Deputy Secretary of
Energy confirmed and approved Rate
Order No. WAPA–149 placing a power
rate formula for the Provo River Project
(PRP) of Western Area Power
Administration (Western) into effect on
an interim basis. The provisional power
rate formula will remain in effect on an
interim basis until the Federal Energy
Regulatory Commission (FERC)
confirms, approves, and places it into
effect on a final basis, or until the power
rate formula is replaced by another
power rate formula.
DATES: The provisional power rate
formula will be placed into effect on an
interim basis on April 1, 2010, and will
be in effect until FERC confirms,
approves, and places the provisional
power rate formula in effect on a final
basis for 5 years ending March 31, 2015,
or until superseded.
FOR FURTHER INFORMATION CONTACT: Ms.
LaVerne Kyriss, Acting CRSP Manager,
Colorado River Storage Project
PO 00000
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Management Center, Western Area
Power Administration, 150 East Social
Hall Avenue, Suite 300, Salt Lake City,
UT 84111–1580, (801) 524–5493, e-mail
kyriss@wapa.gov, or Mr. Rodney Bailey,
Rates Manager, Colorado River Storage
Project Management Center, Western
Area Power Administration, 150 East
Social Hall Avenue, Suite 300, Salt Lake
City, UT 84111–1580, (801) 524–4007,
e-mail rbailey@wapa.gov.
SUPPLEMENTARY INFORMATION: The PRP,
which includes Deer Creek Dam on the
Provo River in Utah, was authorized in
1935. Construction of the dam began in
1938 and was completed in 1951. The
Deer Creek Powerplant was authorized
on August 20, 1951, construction began
in 1956, and was completed in 1958;
generation began that same year. Its
maximum operating capacity is 5,300
kilowatts.
The PRP power is marketed according
to a marketing plan that was approved
and published in the Federal Register
on November 21, 1994. This marketing
plan allows Western to market the
output of the PRP to customers of Utah
Municipal Power Agency, Utah
Associated Municipal Power Systems,
and Heber Light and Power (Customers)
in the Provo River drainage area.
Contract Nos. 94–SLC–0253, 94–SLC–
0254, and 07–SLC–0601 between the
United States and Customers require
that the amount of each annual
installment be established in advance by
Western and submitted to the Customers
on or before August 31 of the year
preceding the appropriate fiscal year.
Each fiscal year, Western will estimate
the Deer Creek Powerplant (DCP)
expenses by preparing a power
repayment study, which will include
estimates of operation, maintenance,
and replacement costs for the DCP.
Each annual installment pays the
annual amortized portion of the United
States’ investment in the Deer Creek
Dam and Reservoir hydroelectric
facilities with interest and the
associated operation, maintenance, and
replacement (OM&R) costs. Since the
repayment schedule does not depend
upon the power and energy made
available for sale or the rate of
generation each year, the Customers pay
all OM&R expenses of the PRP and, in
return, receive all of the energy
produced by the PRP. Western will
continue to provide the Customers a
revised annual installment by August 31
of each year using the same
methodology.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
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Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices
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 903) were published on
September 18, 1985.
Under Delegation Order Nos. 00–
037.00 and 00–001.00C, 10 CFR 903,
and 18 CFR 300, I hereby confirm,
approve, and place Rate Order No.
WAPA–149 into effect on an interim
basis. The renewal of the power rate
formula will be promptly submitted to
FERC for confirmation and approval on
a final basis.
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Dated: February 1, 2010.
Daniel B. Poneman,
Deputy Secretary.
Order Confirming, Approving, and
Placing the Power Rate Formula for the
Provo River Project Into Effect on an
Interim Basis
This rate was established in
accordance with section 302 of the
Department of Energy (DOE)
Organization Act (42 U.S.C. 7152). This
Act transferred to and vested in the
Secretary of Energy the power marketing
functions of the Secretary of the
Department of the Interior and the
Bureau of Reclamation under the
Reclamation Act of 1902 (ch. 1093, 32
Stat. 388), as amended and
supplemented by subsequent laws,
particularly section 9(c) of the
Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other acts that
specifically apply to the Provo River
Project (PRP).
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, 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.
Acronyms and Definitions
As used in this rate order, the following
acronyms and definitions apply:
Administrator: The Administrator of the
Western Area Power Administration.
CRSP: Colorado River Storage Project.
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Contracts: Contract No. 94–SLC–0254 with
Utah Municipal Power Agency effective
December 22, 1994, Contract No. 94–SLC–
0253 with Utah Associated Municipal
Power System effective January 19, 1995,
and Contract No. 07–SLC–0601 with Heber
Light and Power effective April 1, 2007.
The Contracts are effective through
September 30, 2024.
Customers: Utah Associated Municipal
Power Systems, Utah Municipal Power
Agency, and Heber Light and Power.
DCP: Deer Creek Powerplant.
DOE: Department of Energy.
DOE Order RA 6120.2: A Department of
Energy order dealing with power marketing
administration financial reporting and
ratemaking procedures.
FERC: Federal Energy Regulatory
Commission.
FY: Fiscal year; October 1 to September 30.
Heber: Heber Light & Power.
Interior: United States Department of the
Interior.
kW: Kilowatt—the electrical unit of capacity
that equals 1,000 watts.
MW: Megawatt—the electrical unit of
capacity that equals 1 million watts or
1,000 kilowatts.
NEPA: National Environmental Policy Act of
1969. (42 U.S.C. 4321, et seq.)
OM&R: Operation, Maintenance, and
Replacement.
PRP: Provo River Project.
PRS: Power Repayment Study.
PRWUA: Provo River Water Users
Association.
Reclamation: United States Department of
the Interior, Bureau of Reclamation.
UAMPS: Utah Associated Municipal Power
Systems.
UMPA: Utah Municipal Power Agency.
Western: United States Department of Energy,
Western Area Power Administration.
Effective Date
This power rate formula takes effect
on an interim basis beginning April 1,
2010, and will remain in effect pending
FERC’s approval of this or a substitute
power rate formula on a final basis for
a 5-year period ending March 31, 2015,
or until superseded.1
Public Notice and Comment
Paragraph 903.23(a) of 10 CFR 903 for
rate extensions does not require either a
consultation and comment period, or
public information, or comment forums.
Western considers this rate order a rate
extension since the power rate formula
is not changing; rather it is going
through the course of a 5-year renewal.
This request is for approval of the power
rate formula renewal using the present
methodology for calculating the annual
installment. On April 20, 2009, Western
met with the Customers and notified
them of Western’s intent to renew the
present power rate formula. Western
1 FERC confirmed and approved the present
Provo River Project rate on April 25, 2005, for a
period through March 31, 2010 (111 FERC ¶ 62089).
PO 00000
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6381
also discussed the FY 2010 budget and
capital expenditures. The Customers
expressed their desire to continue using
the power rate formula methodology
through letter notifications.
Project Description
Construction of the PRP began in May
1938, and the powerplant was
completed in 1958. Presently, it has a
generating capacity of 5,300 kW of
power. Energy excess to the PRP
purposes is marketed under a marketing
plan published in the Federal Register
on November 21, 1994. This marketing
plan allows Western to market the
output of the PRP to customers of
UAMPS, UMPA, and Heber in the Provo
River drainage area.
Power Repayment Studies
Each FY, Western will estimate DCP
expenses by preparing a PRS that will
include estimates of OM&R costs for the
DCP for the next FY. The PRS
determines if power revenues will be
sufficient to pay, within the prescribed
time periods, all costs assigned to the
PRP power function. Repayment criteria
are based on law, policies (including
DOE Order RA 6120.2), and authorizing
legislation.
Western calculates the annual
installment based on 2 years of data.
The calculation includes the projected
costs of the rate installment year (future
FY) and an adjustment from the last
historic FY. The adjustment is the
surplus or deficit that occurs in the last
historic year when actual costs and
repayment obligations are compared
with actual revenues. This surplus or
deficit is combined with the costs for
the projected rate installment year to
arrive at the annual rate installment.
Each annual installment pays the
annual amortized portion of the United
States’ investment in the Deer Creek
Dam and Reservoir hydroelectric
facilities with interest and the
associated OM&R. This repayment
schedule does not depend upon the
power and energy made available for
sale or the rate of generation each year.
Certification of Rates
Western’s Administrator certified that
the methodology for the provisional
power rate formula renewal for the
Provo River Project to calculate the
annual installment is consistent with
sound business principles. The
methodology for the provisional power
rate formula renewal was developed
following administrative policies and
applicable laws.
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Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices
Statement of Revenue and Related
Expenses
The revenue requirements for the PRP
are based on PRS calculations for future
requirements, which will be adjusted
when FY actuals are known. The
following table summarizes revenues
and expenses for the current 6-year
power rate formula and the actual
revenues and expenses for the same
period.
PROVO RIVER—COMPARISON OF 6-YEAR TOTAL REVENUES AND REVENUE DISTRIBUTION FY 2004–2009
[$1,000]
Projected 1
Item
Actual 2
Change
Total Revenues ................................................................................................................
Revenues Distribution:
O&M ..........................................................................................................................
Transmission ............................................................................................................
Interest ......................................................................................................................
Investment Repayment .............................................................................................
Surplus Revenues ....................................................................................................
1,857
1,532
(325)
1,217
179
165
264
32
1,510
108
23
316
(425)
293
(71)
(142)
52
(457)
Total Revenues Distribution ..............................................................................
1,857
1,532
(325)
1 Taken
from FY 2003 Final PRS.
the rate process seeks approval for a 5-year period, 6 years of data are shown in the above table because FY 2009 is an estimate
and is used for the current 2009 rate installment. Actual data is taken from the FY 2008 Final PRS.
2 Although
The following table provides a
summary of the projected revenues and
expenses during the provisional power
rate formula period.
PROVO RIVER PROJECT 6-YEAR PROJECTIONS TOTAL REVENUES AND REVENUE DISTRIBUTION FY 2010–2015
[$1,000]
FY 2010–2015 projections
Total Revenues 1 .......................................................................................................................................................
Revenue Distribution:
O&M ....................................................................................................................................................................
Interest 2 ..............................................................................................................................................................
Investment Repayment 2 ....................................................................................................................................
$1,799
Total Revenue Distribution ..........................................................................................................................
1,799
1,799
0
0
1 Although
the rate process seeks approval for a 5-year period (FY 2010–2015), 6 years of data are shown in the above table because FY
2010 is an estimate and is used for the current 2010 rate installment.
2 All capitalized investments are repaid and none are planned through 2015; therefore, no interest or principal payments are projected.
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Basis for Rate Development
Each Customer is billed for electric
service calculated every FY, payable in
12 equal monthly payments. Every FY,
Western will estimate the PRP expenses
by preparing a PRS which will include
estimates of OM&R costs for the DCP.
The amount of each monthly payment
will be established in advance by
Western and submitted to the Customers
on or before August 31 of the year
preceding the appropriate FY.
The calculation of the annual
installment and the monthly payments
will include adjustments to the revenue
requirements estimates. These
adjustments deal with the difference
between estimated and actual revenue
requirements. If the revenue
requirements are underestimated, an
amount equal to the difference must be
added to the next annual installment.
Conversely, if revenue requirements are
overestimated, the amount would be
deducted from the next installment.
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14:39 Feb 08, 2010
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In accordance with the Contracts,
minor replacements and additions are
included in the revenue requirements of
the DCP. If major replacements and
additions exceeding $5,000 but not
greater than $25,000 are needed, the
Customers will be given the option of
financing their share of the cost or
having the cost capitalized and
amortized over the life of the
replacement or addition. If the
Customers select the latter, the costs
will be capitalized at the current interest
rate prescribed by DOE, under RA
6120.2, Paragraph 11B, ‘‘Basic Policy for
Rate Adjustment; Interest Rate
Formula,’’ in the fiscal year in which the
replacement or addition is made. Such
costs will be based on prudent and
businesslike management practices and
following established electric industry
operation and maintenance practices. If
extraordinary replacements exceeding
$25,000 are needed, the Customers will
consult with Reclamation, PRWUA, and
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Western about financing the
replacement.
The rate does not depend upon the
power and energy made available for
sale; instead, the Customers will pay the
total PRP’s annual powerplant revenue
requirements in return for the total
marketable PRP production. Each
Customer will pay its proportional share
of the revenue requirements identified
in the PRS in 12 monthly installments.
Availability of Information
Information about this power rate
formula renewal is available for public
review at the Colorado River Storage
Project Management Center, Western
Area Power Administration, 150 East
Social Hall Avenue, Suite 300, Salt Lake
City, Utah or at https://www.wapa.gov/
crsp/ratescrsp/adjustments.htm under
CRSP rate adjustment documents for the
Provo River Project’s section.
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Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National
Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321, et seq.), Council
on Environmental Quality Regulations
(40 CFR parts 1500–1508), and DOE
NEPA Regulations (10 CFR part 1021),
Western has determined that this action
is categorically excluded from the
preparation of an environmental
assessment or an environmental impact
statement.
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Submission to Federal Energy
Regulatory Commission
The interim power rate formula
renewal herein confirmed, approved,
and placed into effect on an interim
basis, together with supporting
documents, will be submitted to FERC
for confirmation and final approval.
Order
In view of the above and under the
authority delegated to me as the Deputy
Secretary of Energy, I confirm and
approve on an interim basis, effective
April 1, 2010, a renewal of the rate
formula for the Provo River Project of
the Western Area Power
Administration. The power rate formula
shall remain in effect on an interim
basis, pending FERC’s confirmation and
approval of it or a substitute rate on a
final basis, through March 31, 2015.
Dated: February 1, 2010.
Daniel B. Poneman,
Deputy Secretary.
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
Cprice-sewell on DSK2BSOYB1PROD with NOTICES
[EPA–R05–RCRA–2009–1018; FRL–9110–3]
Lead-Based Paint Renovation, Repair
and Painting, and Pre-Renovation
Education Activities in Target Housing
and Child Occupied Facilities; State of
Wisconsin Notice of Self-Certification
Program Authorization, Request for
Public Comment, Opportunity for
Public Hearing
AGENCY: Environmental Protection
Agency (EPA).
14:39 Feb 08, 2010
SUMMARY: This notice announces that on
October 20, 2009, the State of Wisconsin
was deemed authorized under section
404(a) of the Toxic Substances Control
Act (TSCA), 15 U.S.C. 2684(a), and 40
CFR 745.324(d)(2), to administer and
enforce requirements for a renovation,
repair and painting program in
accordance with section 402(c)(3) of
TSCA, 15 U.S.C. 2682(c)(3), and a leadbased paint pre-renovation education
program in accordance with section
406(b) of TSCA, 15 U.S.C. 2686(b). This
notice also announces that EPA is
seeking comment during a 45-day
public comment period, and is
providing an opportunity to request a
public hearing within the first 15 days
of this comment period, on whether
these Wisconsin programs are at least as
protective as the federal programs and
provide for adequate enforcement. This
notice also announces that the
authorization of the Wisconsin 402(c)(3)
and 406(b) programs, which were
deemed authorized by regulation and
statute on October 20, 2009, will
continue without further notice unless
EPA, based on its own review and/or
comments received during the comment
period, disapproves one or both of these
Wisconsin program applications on or
before April 19, 2010.
DATES: Comments, identified by docket
control number EPA–R05–RCRA–2009–
1018, must be received on or before
March 26, 2010. In addition, a public
hearing request must be submitted on or
before February 24, 2010.
Comments, and requests for
a public hearing may be submitted by
mail, electronically, or in person. Please
follow the detailed instructions for each
method as provided in Section I of the
SUPPLEMENTARY INFORMATION. To ensure
proper receipt by EPA, it is imperative
that you identify docket control number
EPA–R05–RCRA–2009–1018 in the
subject line on the first page of your
response.
ADDRESSES:
[FR Doc. 2010–2838 Filed 2–8–10; 8:45 am]
VerDate Nov<24>2008
ACTION: Notice; program authorization,
request for comments and opportunity
for public hearing.
Jkt 220001
FOR FURTHER INFORMATION CONTACT:
Marlyse Wiebenga, Technical Contact,
LCD, Toxics Section, United States
Environmental Protection Agency, 77
W. Jackson Blvd., Mail Code LC–8J,
Chicago, IL 60604, telephone number:
(312) 886–4377; e-mail address:
wiebenga.marlyse@epa.gov.
SUPPLEMENTARY INFORMATION:
PO 00000
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6383
I. General Information
A. Does This Action Apply to Me?
This action is directed to the public
in general, to entities offering Lead Safe
Renovation courses, and to firms and
individuals engaged in renovation and
remodeling activities of pre-1978
housing in the State of Wisconsin.
Individuals and firms falling under the
North American Industrial
Classification System (NAICS) codes
231118, 238210, 238220, 238320,
531120, 531210, 53131, e.g., General
Building Contractors/Operative
Builders, Renovation Firms, Individual
Contractors, and Special Trade
Contractors like Carpenters, Painters,
Drywall workers and Plumbers, ‘‘Home
Improvement’’ Contractors, as well as
Property Management Firms and some
Landlords are also affected by these
rules. This listing is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
affected by this action. Other types of
entities not listed in this notice could
also be affected. The NAICS codes have
been provided to assist you and others
in determining whether this action
might apply to certain entities. If you
have any questions regarding the
applicability of this action to a
particular entity, consult the technical
person listed under FOR FURTHER
INFORMATION CONTACT.
B. How Can I Get Additional
Information, Including Copies of This
Document or Other Related Documents?
1. Electronically: you may obtain
electronic copies of this document, and
certain other related documents that
might be available electronically, from
the EPA Internet Home Page at https://
www.epa.gov/. To access this document
select ‘‘Laws and Regulations,’’
‘‘Regulations and Proposed Rules,’’ and
then look up the entry for this document
under the ‘‘Federal RegisterEnvironmental Documents.’’ You can
also go directly to the Federal Register
listings at https://www.epa.gov/fedrgstr/.
2. In person: you may read this
document, and certain other related
documents, by visiting the Wisconsin
Department of Health Services, 1 West
Wilson St., 1st floor, Room 137,
Madison, WI, 53703, contact person,
Shelley Bruce, phone number (608)
261–6876. You may also read this
document, and certain other related
documents, by visiting the United States
Environmental Protection Agency, 77
W. Jackson Blvd., Chicago, IL. You
should arrange your visit to the EPA
office by contacting the technical person
listed under FOR FURTHER INFORMATION
CONTACT. Also, EPA has established an
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]]>Agencies
[Federal Register Volume 75, Number 26 (Tuesday, February 9, 2010)]
[Notices]
[Pages 6380-6383]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2838]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Provo River Project Rate Order No. WAPA-149
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Rate Order Concerning a Power Rate Formula.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-149 placing a power rate formula for the Provo River
Project (PRP) of Western Area Power Administration (Western) into
effect on an interim basis. The provisional power rate formula will
remain in effect on an interim basis until the Federal Energy
Regulatory Commission (FERC) confirms, approves, and places it into
effect on a final basis, or until the power rate formula is replaced by
another power rate formula.
DATES: The provisional power rate formula will be placed into effect on
an interim basis on April 1, 2010, and will be in effect until FERC
confirms, approves, and places the provisional power rate formula in
effect on a final basis for 5 years ending March 31, 2015, or until
superseded.
FOR FURTHER INFORMATION CONTACT: Ms. LaVerne Kyriss, Acting CRSP
Manager, Colorado River Storage Project Management Center, Western Area
Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake
City, UT 84111-1580, (801) 524-5493, e-mail kyriss@wapa.gov, or Mr.
Rodney Bailey, Rates Manager, Colorado River Storage Project Management
Center, Western Area Power Administration, 150 East Social Hall Avenue,
Suite 300, Salt Lake City, UT 84111-1580, (801) 524-4007, e-mail
rbailey@wapa.gov.
SUPPLEMENTARY INFORMATION: The PRP, which includes Deer Creek Dam on
the Provo River in Utah, was authorized in 1935. Construction of the
dam began in 1938 and was completed in 1951. The Deer Creek Powerplant
was authorized on August 20, 1951, construction began in 1956, and was
completed in 1958; generation began that same year. Its maximum
operating capacity is 5,300 kilowatts.
The PRP power is marketed according to a marketing plan that was
approved and published in the Federal Register on November 21, 1994.
This marketing plan allows Western to market the output of the PRP to
customers of Utah Municipal Power Agency, Utah Associated Municipal
Power Systems, and Heber Light and Power (Customers) in the Provo River
drainage area.
Contract Nos. 94-SLC-0253, 94-SLC-0254, and 07-SLC-0601 between the
United States and Customers require that the amount of each annual
installment be established in advance by Western and submitted to the
Customers on or before August 31 of the year preceding the appropriate
fiscal year. Each fiscal year, Western will estimate the Deer Creek
Powerplant (DCP) expenses by preparing a power repayment study, which
will include estimates of operation, maintenance, and replacement costs
for the DCP.
Each annual installment pays the annual amortized portion of the
United States' investment in the Deer Creek Dam and Reservoir
hydroelectric facilities with interest and the associated operation,
maintenance, and replacement (OM&R) costs. Since the repayment schedule
does not depend upon the power and energy made available for sale or
the rate of generation each year, the Customers pay all OM&R expenses
of the PRP and, in return, receive all of the energy produced by the
PRP. Western will continue to provide the Customers a revised annual
installment by August 31 of each year using the same methodology.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
[[Page 6381]]
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 903) were published on
September 18, 1985.
Under Delegation Order Nos. 00-037.00 and 00-001.00C, 10 CFR 903,
and 18 CFR 300, I hereby confirm, approve, and place Rate Order No.
WAPA-149 into effect on an interim basis. The renewal of the power rate
formula will be promptly submitted to FERC for confirmation and
approval on a final basis.
Dated: February 1, 2010.
Daniel B. Poneman,
Deputy Secretary.
Order Confirming, Approving, and Placing the Power Rate Formula for the
Provo River Project Into Effect on an Interim Basis
This rate was established in accordance with section 302 of the
Department of Energy (DOE) Organization Act (42 U.S.C. 7152). This Act
transferred to and vested in the Secretary of Energy the power
marketing functions of the Secretary of the Department of the Interior
and the Bureau of Reclamation under the Reclamation Act of 1902 (ch.
1093, 32 Stat. 388), as amended and supplemented by subsequent laws,
particularly section 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other acts that specifically apply to the Provo
River Project (PRP).
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, 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.
Acronyms and Definitions
As used in this rate order, the following acronyms and
definitions apply:
Administrator: The Administrator of the Western Area Power
Administration.
CRSP: Colorado River Storage Project.
Contracts: Contract No. 94-SLC-0254 with Utah Municipal Power Agency
effective December 22, 1994, Contract No. 94-SLC-0253 with Utah
Associated Municipal Power System effective January 19, 1995, and
Contract No. 07-SLC-0601 with Heber Light and Power effective April
1, 2007. The Contracts are effective through September 30, 2024.
Customers: Utah Associated Municipal Power Systems, Utah Municipal
Power Agency, and Heber Light and Power.
DCP: Deer Creek Powerplant.
DOE: Department of Energy.
DOE Order RA 6120.2: A Department of Energy order dealing with power
marketing administration financial reporting and ratemaking
procedures.
FERC: Federal Energy Regulatory Commission.
FY: Fiscal year; October 1 to September 30.
Heber: Heber Light & Power.
Interior: United States Department of the Interior.
kW: Kilowatt--the electrical unit of capacity that equals 1,000
watts.
MW: Megawatt--the electrical unit of capacity that equals 1 million
watts or 1,000 kilowatts.
NEPA: National Environmental Policy Act of 1969. (42 U.S.C. 4321, et
seq.)
OM&R: Operation, Maintenance, and Replacement.
PRP: Provo River Project.
PRS: Power Repayment Study.
PRWUA: Provo River Water Users Association.
Reclamation: United States Department of the Interior, Bureau of
Reclamation.
UAMPS: Utah Associated Municipal Power Systems.
UMPA: Utah Municipal Power Agency.
Western: United States Department of Energy, Western Area Power
Administration.
Effective Date
This power rate formula takes effect on an interim basis beginning
April 1, 2010, and will remain in effect pending FERC's approval of
this or a substitute power rate formula on a final basis for a 5-year
period ending March 31, 2015, or until superseded.\1\
---------------------------------------------------------------------------
\1\ FERC confirmed and approved the present Provo River Project
rate on April 25, 2005, for a period through March 31, 2010 (111
FERC ] 62089).
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Public Notice and Comment
Paragraph 903.23(a) of 10 CFR 903 for rate extensions does not
require either a consultation and comment period, or public
information, or comment forums. Western considers this rate order a
rate extension since the power rate formula is not changing; rather it
is going through the course of a 5-year renewal. This request is for
approval of the power rate formula renewal using the present
methodology for calculating the annual installment. On April 20, 2009,
Western met with the Customers and notified them of Western's intent to
renew the present power rate formula. Western also discussed the FY
2010 budget and capital expenditures. The Customers expressed their
desire to continue using the power rate formula methodology through
letter notifications.
Project Description
Construction of the PRP began in May 1938, and the powerplant was
completed in 1958. Presently, it has a generating capacity of 5,300 kW
of power. Energy excess to the PRP purposes is marketed under a
marketing plan published in the Federal Register on November 21, 1994.
This marketing plan allows Western to market the output of the PRP to
customers of UAMPS, UMPA, and Heber in the Provo River drainage area.
Power Repayment Studies
Each FY, Western will estimate DCP expenses by preparing a PRS that
will include estimates of OM&R costs for the DCP for the next FY. The
PRS determines if power revenues will be sufficient to pay, within the
prescribed time periods, all costs assigned to the PRP power function.
Repayment criteria are based on law, policies (including DOE Order RA
6120.2), and authorizing legislation.
Western calculates the annual installment based on 2 years of data.
The calculation includes the projected costs of the rate installment
year (future FY) and an adjustment from the last historic FY. The
adjustment is the surplus or deficit that occurs in the last historic
year when actual costs and repayment obligations are compared with
actual revenues. This surplus or deficit is combined with the costs for
the projected rate installment year to arrive at the annual rate
installment. Each annual installment pays the annual amortized portion
of the United States' investment in the Deer Creek Dam and Reservoir
hydroelectric facilities with interest and the associated OM&R. This
repayment schedule does not depend upon the power and energy made
available for sale or the rate of generation each year.
Certification of Rates
Western's Administrator certified that the methodology for the
provisional power rate formula renewal for the Provo River Project to
calculate the annual installment is consistent with sound business
principles. The methodology for the provisional power rate formula
renewal was developed following administrative policies and applicable
laws.
[[Page 6382]]
Statement of Revenue and Related Expenses
The revenue requirements for the PRP are based on PRS calculations
for future requirements, which will be adjusted when FY actuals are
known. The following table summarizes revenues and expenses for the
current 6-year power rate formula and the actual revenues and expenses
for the same period.
Provo River--Comparison of 6-Year Total Revenues and Revenue Distribution FY 2004-2009
[$1,000]
----------------------------------------------------------------------------------------------------------------
Item Projected \1\ Actual \2\ Change
----------------------------------------------------------------------------------------------------------------
Total Revenues............................................ 1,857 1,532 (325)
Revenues Distribution:
O&M................................................... 1,217 1,510 293
Transmission.......................................... 179 108 (71)
Interest.............................................. 165 23 (142)
Investment Repayment.................................. 264 316 52
Surplus Revenues...................................... 32 (425) (457)
-----------------------------------------------------
Total Revenues Distribution....................... 1,857 1,532 (325)
----------------------------------------------------------------------------------------------------------------
\1\ Taken from FY 2003 Final PRS.
\2\ Although the rate process seeks approval for a 5-year period, 6 years of data are shown in the above table
because FY 2009 is an estimate and is used for the current 2009 rate installment. Actual data is taken from
the FY 2008 Final PRS.
The following table provides a summary of the projected revenues
and expenses during the provisional power rate formula period.
Provo River Project 6-Year Projections Total Revenues and Revenue
Distribution FY 2010-2015
[$1,000]
------------------------------------------------------------------------
FY 2010-2015 projections
------------------------------------------------------------------------
Total Revenues \1\........................ $1,799
Revenue Distribution:
O&M................................... 1,799
Interest \2\.......................... 0
Investment Repayment \2\.............. 0
-----------------------------
Total Revenue Distribution........ 1,799
------------------------------------------------------------------------
\1\ Although the rate process seeks approval for a 5-year period (FY
2010-2015), 6 years of data are shown in the above table because FY
2010 is an estimate and is used for the current 2010 rate installment.
\2\ All capitalized investments are repaid and none are planned through
2015; therefore, no interest or principal payments are projected.
Basis for Rate Development
Each Customer is billed for electric service calculated every FY,
payable in 12 equal monthly payments. Every FY, Western will estimate
the PRP expenses by preparing a PRS which will include estimates of
OM&R costs for the DCP. The amount of each monthly payment will be
established in advance by Western and submitted to the Customers on or
before August 31 of the year preceding the appropriate FY.
The calculation of the annual installment and the monthly payments
will include adjustments to the revenue requirements estimates. These
adjustments deal with the difference between estimated and actual
revenue requirements. If the revenue requirements are underestimated,
an amount equal to the difference must be added to the next annual
installment. Conversely, if revenue requirements are overestimated, the
amount would be deducted from the next installment.
In accordance with the Contracts, minor replacements and additions
are included in the revenue requirements of the DCP. If major
replacements and additions exceeding $5,000 but not greater than
$25,000 are needed, the Customers will be given the option of financing
their share of the cost or having the cost capitalized and amortized
over the life of the replacement or addition. If the Customers select
the latter, the costs will be capitalized at the current interest rate
prescribed by DOE, under RA 6120.2, Paragraph 11B, ``Basic Policy for
Rate Adjustment; Interest Rate Formula,'' in the fiscal year in which
the replacement or addition is made. Such costs will be based on
prudent and businesslike management practices and following established
electric industry operation and maintenance practices. If extraordinary
replacements exceeding $25,000 are needed, the Customers will consult
with Reclamation, PRWUA, and Western about financing the replacement.
The rate does not depend upon the power and energy made available
for sale; instead, the Customers will pay the total PRP's annual
powerplant revenue requirements in return for the total marketable PRP
production. Each Customer will pay its proportional share of the
revenue requirements identified in the PRS in 12 monthly installments.
Availability of Information
Information about this power rate formula renewal is available for
public review at the Colorado River Storage Project Management Center,
Western Area Power Administration, 150 East Social Hall Avenue, Suite
300, Salt Lake City, Utah or at https://www.wapa.gov/crsp/ratescrsp/adjustments.htm under CRSP rate adjustment documents for the Provo
River Project's section.
[[Page 6383]]
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321, et seq.), Council on Environmental Quality
Regulations (40 CFR parts 1500-1508), and DOE NEPA Regulations (10 CFR
part 1021), Western has determined that this action is categorically
excluded from the preparation of an environmental assessment or an
environmental impact statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Submission to Federal Energy Regulatory Commission
The interim power rate formula renewal herein confirmed, approved,
and placed into effect on an interim basis, together with supporting
documents, will be submitted to FERC for confirmation and final
approval.
Order
In view of the above and under the authority delegated to me as the
Deputy Secretary of Energy, I confirm and approve on an interim basis,
effective April 1, 2010, a renewal of the rate formula for the Provo
River Project of the Western Area Power Administration. The power rate
formula shall remain in effect on an interim basis, pending FERC's
confirmation and approval of it or a substitute rate on a final basis,
through March 31, 2015.
Dated: February 1, 2010.
Daniel B. Poneman,
Deputy Secretary.
[FR Doc. 2010-2838 Filed 2-8-10; 8:45 am]
BILLING CODE 6450-01-P
