Boulder Canyon Project-Rate Order No. WAPA-150, 57912-57915 [2010-23807]
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Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Notices
comment, or protest at the address
provided above in accordance with
§§ 385.211 or 385.214 of the Federal
Energy Regulatory Commission’s Rules
of Practice and Procedures (18 CFR
385.211, 385.214). Fifteen copies of each
petition and protest should be filed with
DOE on or before the date listed above.
Comments on the GSEMNA
application to export electric energy to
Canada should be clearly marked with
Docket No. EA–372. Additional copies
are to be filed directly with Ray
Cunningham, GDF SUEZ Energy
Marketing NA, Inc., 1990 Post Oak
Blvd., Suite 1900, Houston, TX 77056
and Catherine P. McCarthy, Dewey &
LeBoeuf LLP, 1101 New York Ave.,
NW., Washington, DC 20005. A final
decision will be made on this
application after the environmental
impacts have been evaluated pursuant
to DOE’s National Environmental Policy
Act Implementing Procedures (10 CFR
part 1021) and after a determination is
made by DOE that the proposed action
will not adversely impact on the
reliability of the U.S. electric power
supply system.
Copies of this application will be
made available, upon request, for public
inspection and copying at the address
provided above, by accessing the
program Web site at https://
www.oe.energy.gov/
permits_pending.htm, or by e-mailing
Odessa Hopkins at
Odessa.hopkins@hq.doe.gov.
Issued in Washington, DC, on September
17, 2010.
Anthony J. Como,
Director, Permitting and Siting, Office of
Electricity Delivery and Energy Reliability.
[FR Doc. 2010–23795 Filed 9–22–10; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
[OE Docket No. EA–375]
Application To Export Electric Energy;
Rainbow Energy Marketing
Corporation
Office of Electricity Delivery
and Energy Reliability, DOE.
ACTION: Notice of application.
AGENCY:
Rainbow Energy Marketing
Corporation (Rainbow) has applied for
authority to transmit electric energy
from the United States to Mexico
pursuant to section 202(e) of the Federal
Power Act.
DATES: Comments, protests, or requests
to intervene must be submitted on or
before October 25, 2010.
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SUMMARY:
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Comments, protests, or
requests to intervene should be
addressed as follows: Office of
Electricity Delivery and Energy
Reliability, Mail Code: OE–20, U.S.
Department of Energy, 1000
Independence Avenue, SW.,
Washington, DC 20585–0350 (FAX 202–
586–8008).
FOR FURTHER INFORMATION CONTACT:
Christopher Lawrence (Program Office)
202–586–5260 or Michael Skinker
(Program Attorney) 202–586–2793.
SUPPLEMENTARY INFORMATION: Exports of
electricity from the United States to a
foreign country are regulated by the
Department of Energy (DOE) pursuant to
sections 301(b) and 402(f) of the
Department of Energy Organization Act
(42 U.S.C. 7151(b), 7172(f)) and require
authorization under section 202(e) of
the FPA (16 U.S.C. 824a(e)).
On September 16, 2010, DOE received
an application from Rainbow for
authority to transmit electric energy
from the United States to Mexico for
five years as a power marketer using
existing international transmission
facilities. Rainbow does not own any
electric transmission facilities nor does
it hold a franchised service area.
The electric energy that Rainbow
proposes to export to Mexico would be
surplus energy purchased from electric
utilities, Federal power marketing
agencies and other entities within the
United States. The existing international
transmission facilities to be utilized by
Rainbow have previously been
authorized by Presidential permits
issued pursuant to Executive Order
10485, as amended, and are appropriate
for open access transmission by third
parties.
Procedural Matters: Any person
desiring to become a party to these
proceedings or to be heard by filing
comments or protests to this application
should file a petition to intervene,
comment, or protest at the address
provided above in accordance with
§§ 385.211 or 385.214 of the Federal
Energy Regulatory Commission’s Rules
of Practice and Procedures (18 CFR
385.211, 385.214). Fifteen copies of each
petition and protest should be filed with
DOE on or before the date listed above.
Comments on the Rainbow
application to export electric energy to
Mexico should be clearly marked with
Docket No. EA–375. Additional copies
are to be filed directly with Joseph M.
Wolfe, Rainbow Energy Marketing
Corporation, Kirkwood Office tower,
919 South 7th Street, Suite 405,
Bismarck, ND 58504. A final decision
will be made on this application after
the environmental impacts have been
ADDRESSES:
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evaluated pursuant to the National
Environmental Policy Act of 1969, and
a determination is made by DOE that the
proposed action will not adversely
impact on the reliability of the U.S.
electric power supply system.
Copies of this application will be
made available, upon request, for public
inspection and copying at the address
provided above, by accessing the
program Web site at https://
www.oe.energy.gov/
permits_pending.htm, or by e-mailing
Odessa Hopkins at
Odessa.hopkins@hq.doe.gov.
Issued in Washington, DC, on September
17, 2010.
Anthony J. Como,
Director, Permitting and Siting, Office of
Electricity Delivery and Energy Reliability.
[FR Doc. 2010–23798 Filed 9–22–10; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project-Rate Order
No. WAPA–150
Western Area Power
Administration, DOE.
ACTION: Notice of Extension of Existing
Rate-setting Formula and Approval of
FY 2011 Base Charge and Rates.
AGENCY:
The Deputy Secretary of
Energy confirmed and approved Rate
Order No. WAPA–150 and Rate
Schedule BCP–F8 extending on an
interim basis the existing Boulder
Canyon Project (BCP) rate-setting
formula and approving the base charge
and rates for FY 2011. The existing
Electric Service Rate Schedule, BCP–F7,
expires September 30, 2010. The
Electric Service Rate Schedule contains
a rate-setting formula that is
recalculated annually based on updated
financial and load data. The existing
rate-setting formula is being extended
under Rate Order No. WAPA–150 and
Rate Schedule BCP–F8.
DATES: Rate Schedule BCP–F8 will be
placed into effect on an interim basis on
the first day of the first full billing
period beginning on October 1, 2010,
and will be in effect until the Federal
Energy Regulatory Commission (FERC)
confirms, approves, and places the rate
schedule in effect on a final basis up to
September 30, 2015, or until the rate
schedule is superseded.
FOR FURTHER INFORMATION CONTACT: Mr.
Jack Murray, Rates Manager, Desert
Southwest Customer Service Region,
Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005–
SUMMARY:
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6457, (602) 605–2442, e-mail
jmurray@wapa.gov.
The
Deputy Secretary of Energy approved on
an interim basis existing Electric Rate
Schedule BCP–120 for BCP electric
service on August 11, 2005 (Rate Order
No. WAPA–120, 70 FR 50316 (August
26, 2005)). FERC confirmed and
approved the rate schedule on June 22,
2006, in FERC Docket No. EF05–5091–
000 (115 FERC ¶ 61,362). The rate
schedule became effective on October 1,
2005, and expires September 30, 2010.
The existing base charge and rates for
BCP electric service under Rate
Schedule BCP–F7 expire September 30,
2010. Effective October 1, 2010, Rate
Schedule BCP–F7 will be superseded by
the new base charge and rates in Rate
Schedule BCP–F8. Under the existing
formula, the rates for BCP electric
service consist of a base charge, a
capacity rate, and an energy rate. The
provisional base charge is $75,182,522,
the provisional capacity rate is $1.90 per
kilowattmonth (kWmonth), and the
provisional energy rate is 9.86 mills/
kWh.
The adjusted base charge and rates
reflect increases in the overall O&M
program costs, visitor services, uprating
program principal payments,
replacement costs, and investment
principal and interest payments. In
addition to the annual expenses
increasing, the offset of other revenues
is decreasing. The new base charge and
rates will provide sufficient revenue to
pay all annual costs, including interest
expense, and repayment of power
investment within the allowable
periods.
Western’s existing rate-setting formula
for electric service requires
recalculation of the base charge and
rates annually to ensure sufficient
recovery of project expenses, including
interest, and capital requirements up to
September 30, 2015.
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. Under
Delegation Order No. 00–037.00 10 CFR
part 903, and 18 CFR part 300, I hereby
approve Rate Order No. WAPA–150,
which extends the existing rate-setting
formula on an interim basis up to
September 30, 2015 and approve the FY
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SUPPLEMENTARY INFORMATION:
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2011 proposed BCP electric service base
charge and rates. Rate Order No.
WAPA–150 will be submitted to the
FERC for confirmation and approval on
a final basis.
Dated: September 16, 2010.
Daniel B. Poneman,
Deputy Secretary.
Department of Energy
Deputy Secretary
In the matter of: Western Area Power
Administration Rate Extension for the
Boulder Canyon Project; Rate Order No.
WAPA–150; Electric Service Rate Schedule
Order Confirming and Approving an
Extension of the Boulder Canyon Project
Electric Service Rate-Setting Formula and FY
2011 Base Charge and Rates Rate Schedule
The extension of the existing ratesetting formula and the approval of base
charge and rates for FY 2011 were
conducted in accordance with section
302 of the Department of Energy (DOE)
Organization Act (42 U.S.C. 7152). This
Act transferred to and vested in the
Secretary of Energy the power marketing
functions of the Secretary of the
Department of the Interior and the
Bureau of Reclamation under the
Reclamation Act of 1902 (ch. 1093, 32
Stat. 388), as amended and
supplemented by subsequent laws,
particularly section 9(c) of the
Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other Acts that
specifically apply to the project
involved.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to Western’s
Administrator, (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy, and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand or
to disapprove such rates to the Federal
Energy Regulatory Commission (FERC).
Existing DOE procedures for public
participation in electric service rate
adjustments are located at 10 CFR part
903, effective September 18, 1985 (50
FR 37835), and 18 CFR part 300.
Western followed the DOE procedures
in developing the rate formula approved
by FERC on June 22, 2006, at 115 FERC
61362.
Background
On June 22, 2006, in Docket No.
EF05–5091–000 at 115 FERC ¶ 61,362,
FERC issued an order confirming,
approving and placing into effect on a
final basis the Electric Service Rate
Schedule BCP–F7 for the Boulder
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57913
Canyon Project (BCP). The Electric
Service Rate Schedule, Rate Order No.
WAPA–120, was approved for 5 years
beginning October 1, 2005, through
September 30, 2010. With this interim
approval, the existing rate-setting
formula will be extended up to
September 30, 2015 under Rate Order
No. WAPA–150.
In addition, new base charge and rates
will take effect on the first day of the
first full billing period beginning on or
after October 1, 2010, and will remain
in effect until September 30, 2011.
When compared to the existing BCP
electric service base charge and rates
under Rate Schedule BCP–F7, the
proposed base charge and rates for BCP
electric service reflect an overall
composite rate increase of
approximately 4.20 percent effective
October 1, 2010. The existing composite
rate under Rate Schedule BCP–F7 is
18.93 mills per kilowatthour (mills/
kWh). The proposed composite rate
under Rate Schedule BCP–F8 is 19.73
mills/kWh.
BCP Electric Service Base Charge and
Rates
BCP electric service rates are designed
to recover an annual revenue
requirement that includes operation and
maintenance expenses, payments to
states, visitor services, the uprating
program, replacements, investment
repayment and interest expense.
Western’s Power Repayment Study
(PRS) allocates the projected annual
revenue requirement for electric service
equally between capacity and energy.
The existing formula for developing
electric service rates would sufficiently
recover all project expenses (including
interest) and capital requirements up to
September 30, 2015.
The BCP electric service base charge
and rates are increasing in FY 2011 due
to the increase of $5 million in annual
expenses from FY 2010 to FY 2011. In
addition to the annual expense increase,
other revenues, which act as an offset to
total expenses, are also decreasing $2.5
million. A projected carryover at the
end of FY 2010 results in mitigating the
increase in the base charge to $4.5
million in FY 2011.
The existing base charge and rates for
BCP electric service under Rate
Schedule BCP–F7 expire September 30,
2010. As stated above, Rate Schedule
BCP–F7 will be superseded by the new
base charge and rates in Rate Schedule
BCP–F8, effective October 1, 2010.
Under the existing formula, the rates for
BCP electric service consist of a base
charge, a capacity rate, and an energy
rate. The provisional base charge is
$75,182,522, the provisional capacity
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Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Notices
rate is $1.90 per kilowattmonth
(kWmonth), and the provisional energy
rate is 9.86 mills/kWh.
The adjusted base charge and rates
reflect increases in the overall O&M
program costs, visitor services, uprating
program principal payments,
replacement costs, and investment
principal and interest payments. In
addition to the annual expenses
increasing, the offset of other revenues
is decreasing. The new base charge and
rates will provide sufficient revenue to
pay all annual costs, including interest
expense, and repayment of power
investment within the allowable
periods.
Western followed the Procedures for
Public Participation in Power and
Transmission Rate Adjustments and
Extensions set forth in 10 CFR part
903.23(a)(2) in extending the BCP ratesetting formula and setting the new base
charge and rates for FY 2011. The steps
Western took to involve interested
parties in the rate process were:
1. On February 2, 2010, Western
published a notice in the Federal
Register announcing the proposed base
charge and rates for BCP, beginning the
public consultation and comment
period, and announcing the public
information and public comment
forums. (75 FR 5315) Western also
announced the public forum dates as
well as access to the BCP rate
adjustment Web site at https://
www.wapa.gov/dsw/pwrmkt/BCP/
RateAdjust.htm.
2. On March 10, 2010, Western hosted
an informal customer meeting in
Phoenix, Arizona. At this informal
meeting, Western explained the
rationale for the rate adjustment and
answered questions.
3. On April 7, 2010, Western held a
public information forum at the Desert
Southwest Regional Office in Phoenix,
Arizona. Western provided detailed
explanations of the proposed base
charge and rates for BCP and answered
questions. Western provided a copy of
the rate presentation, supporting
documentation, and informational
handouts.
4. On April 22, 2010, Western held a
comment forum to give the public an
opportunity to comment for the record.
Three individuals representing entities
commented at this forum.
5. Western received one comment
letter during the consultation and
comment period, which ended May 3,
2010. All comments have been
considered in preparing this Rate Order.
Comments
Written comments were received from
the following organization:
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Irrigation & Electrical Districts
Association of Arizona, Arizona.
Oral comments were made on behalf
of the following organizations:
Arizona Municipal Power Users
Association, Arizona.
Irrigation & Electrical Districts
Association of Arizona, Arizona.
Metropolitan Water District of Southern
California, California.
The comments and responses
regarding the electric service base
charge and rates, paraphrased for
brevity when not affecting the meaning
of the statement(s), are discussed below.
Direct quotes from comment letters are
used for clarification where necessary.
Comment: A commenter stated that he
objects to a 3 percent indexing factor
used by the Federal Agencies for
increasing their annual expenses when
the Consumer Price Index (CPI) current
year was less than 1 percent and the
projected CPI for next year is flat,
showing no increase. It was expressed
that under these circumstances a 3percent increase in expected
expenditures is unrealistic.
Response: Reclamation and Western
are sensitive to increased costs to the
customers. Although Western’s and
Reclamation’s budgets are not explicitly
tied to the CPI or any other inflation
index, both agencies are conscious of
these factors and work diligently to
adhere to the mandate of maintaining
the lowest rates possible to the customer
while using sound business principles.
Both agencies continue to provide
transparency in development of their
annual budgets during the annual
Technical Review Committee process,
the Engineering and Operating
Committee meetings and in the annual
rate processes. Budgets are estimated as
conservatively as possible, taking into
consideration any increases in labor
costs approved by Congress for the
upcoming year. All budgets are
ultimately approved in close
coordination with BCP Contractors, to
ensure all annual costs are covered
while maintaining a safe and reliable
resource.
Comment: A commenter stated that
the Bureau of Reclamation’s post
September 11, 2001, security costs be
adjusted upward or downward with
regard to the CPI. Since the CPI
applicable to this budget declined, a
corresponding decline in the security
costs should be reflected in this budget.
Response: As stated in the notes for
the Boulder Canyon Project FY2011
Final Ten Year Operating Plan under
Administrative and General Expense
(A&GE), an adjustment for the projected
security non-reimbursable costs has
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been incorporated into the final total for
the ‘‘Post 9/11 Security contract.’’ Per
the Reclamation Directives & Standards
(D&S) for Reimbursability of Security
Costs, establishing provisions for the
reimbursability of Reclamation security
costs, under authority of the
Reclamation Act of June 17, 1902 (32
Stat. 388; 43 U.S.C. 391) and acts
amendatory thereof and supplementary
thereto; Section 513 of the Consolidated
Natural Resources Act of 2008 (Pub. L.
110–229), the projected FY2011 nonreimbursable security projected
reduction in expense, utilizing the CPI
as indicated in the D&S, and totaling
$275,000 ($239,000 reducing A&GE and
$36,000 reducing Visitor Services total)
was factored into the FY2011 projected
expenditures, per the ‘‘Report to
Congress’’ and based upon the
reimbursability ceiling for Reclamation.
The D&S can be viewed at https://
www.usbr.gov/recman/sle/sle05-01.pdf.
Comment: A commenter asked for an
explanation of a notation made by the
Bureau of Reclamation regarding the
total water scheduling account being
two and one half years in arrears. What
impact does this statement have on the
Hoover rate? Why is this account in
arrears? What is being done about it?
Response: After discussions between
Reclamation Water Operations, Power
Office and Financial Management,
Reclamation notes that the account itself
is not two and one half years in arrears,
and the reference will be removed from
the notes under Operations summary
spreadsheets in the Ten Year Operating
Plan. It has no impact on the Hoover
rates.
Comment: A commenter encouraged
Western to file comments in FERC
Docket No. RM10–11–000, Notice of
Inquiry into the Integration of Variable
Energy Resources, similar to those filed
by the Bureau of Reclamation since
integration could increase costs to the
BCP.
Response: Any costs to the BCP
associated with the integration of
variable energy resources are
speculative at this point, and therefore
are not included in these proposed base
charge and rates.
Availability of Information
Information about this extension and
adjustment of electric service base
charge and rates, including power
repayment studies, comments, letters,
memoranda, and other supporting
material made or kept by Western used
to develop the provisional base charge
and rates, is available for public review
in the Desert Southwest Customer
Service Regional Office, Western Area
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Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Notices
Power Administration, 615 South 43rd
Avenue, Phoenix, Arizona.
Order
In view of the foregoing and under the
authority delegated to me, I hereby
confirm and approve on an interim
basis, effective October 1, 2010, Rate
Schedule BCP–F8, for the Boulder
Canyon Project of the Western Area
Power Administration. The rate
schedule shall remain in effect on an
interim basis, pending FERC
confirmation and approval of it or
substitute rates on a final basis up to
September 30, 2015.
Dated: September 16, 2010.
Daniel B. Poneman, Deputy Secretary.
United States Department of Energy
Western Area Power Administration
Boulder Canyon Project, Arizona,
Nevada, Southern California
Schedule of Rates for Electric Service
Effective
The first day of the first full billing
period beginning on or after October 1,
2010, and remaining in effect through
September 30, 2015, or until
superseded.
Available
In the marketing area serviced by the
Boulder Canyon Project (BCP).
Applicable
To power Contractors served by the
BCP supplied through one meter, at one
point of delivery, unless otherwise
provided by contract.
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Character and Conditions of Service
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points established by
contract.
Base Charge
The total charge paid by a Contractor
for annual capacity and energy based on
the annual revenue requirement. The
base charge shall be composed of an
energy component and a capacity
component:
Energy Charge: Each Contractor shall
be billed monthly an energy charge
equal to the Rate Year Energy Dollar
multiplied by the Contractor’s firm
energy percentage multiplied by the
Contractor’s monthly energy ratio as
provided by contract.
Capacity Charge: Each Contractor
shall be billed monthly a capacity
charge equal to the Rate Year Capacity
Dollar divided by 12 multiplied by the
Contractor’s contingent capacity
percentage as provided by contract.
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Forecast Rates
DEPARTMENT OF ENERGY
Energy: Shall be equal to the Rate
Year Energy Dollar divided by the lesser
of the total master schedule energy or
4,501.001 million kWhs. This rate is to
be applied for use of excess energy,
unauthorized overruns, and water pump
energy.
Capacity: Shall be equal to the Rate
Year Capacity Dollar divided by
1,951,000 kWs, to be applied for use of
unauthorized overruns.
Office of Energy Efficiency and
Renewable Energy
Calculated Energy Rate
57915
AGENCY:
Within 90 days after the end of each
rate year, a Calculated Energy Rate shall
be calculated. If the energy deemed
delivered is greater than 4,501.001
million kWhs, then the Calculated
Energy Rate shall be applied to each
Contractor’s energy deemed delivered.
A credit or debit shall be established
based on the difference between the
Contractor’s Energy Dollar and the
Contractor’s actual energy charge, to be
applied the following month calculated
or as soon as possible thereafter.
Lower Basin Development Fund
Contribution Charge
The contribution charge is 4.5 mills/
kWh for each kWh measured or
scheduled to an Arizona purchaser and
2.5 mills/kWh for each kWh measured
or scheduled to a California or Nevada
purchaser, except for purchased power.
Billing for Unauthorized Overruns
For each billing period in which there
is a contract violation involving an
unauthorized overrun of the contractual
power obligations, such overrun shall be
billed at 10 times the Forecast Energy
Rate and Forecast Capacity Rate. The
contribution charge shall be applied
also to each kWh of overrun.
Adjustments
None.
[FR Doc. 2010–23807 Filed 9–22–10; 8:45 am]
BILLING CODE 6450–01–P
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[Case No. CW–013]
Energy Conservation Program for
Consumer Products: Notice of Petition
for Waiver of the General Electric
Company From the Department of
Energy Residential Clothes Washer
Test Procedure, and Grant of Interim
Waiver
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Notice of petition for waiver,
notice of grant of interim waiver, and
request for comments.
This notice announces receipt
of and publishes the General Electric
Company (GE) petition for waiver
(hereafter, ‘‘petition’’) from specified
portions of the U.S. Department of
Energy (DOE) test procedure for
determining the energy consumption of
clothes washers. Today’s notice also
grants an interim waiver of the clothes
washer test procedure. Through this
notice, DOE also solicits comments with
respect to the GE petition.
DATES: DOE will accept comments, data,
and information with respect to the GE
petition until, but no later than October
25, 2010.
ADDRESSES: You may submit comments,
identified by case number CW–013, by
any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
AS_Waiver_Requests@ee.doe.gov
Include ‘‘Case No. CW–013’’ in the
subject line of the message.
• Mail: Ms. Brenda Edwards, U.S.
Department of Energy, Building
Technologies Program, Mailstop EE–2J/
1000 Independence Avenue, SW.,
Washington, DC 20585–0121.
Telephone: (202) 586–2945. Please
submit one signed original paper copy.
• Hand Delivery/Courier: Ms. Brenda
Edwards, U.S. Department of Energy,
Building Technologies Program, 950
L’Enfant Plaza SW., Suite 600,
Washington, DC 20024. Please submit
one signed original paper copy.
Instructions: All submissions received
should include the agency name and
case number for this proceeding. Submit
electronic comments in WordPerfect,
Microsoft Word, Portable Document
Format (PDF), or text (American
Standard Code for Information
Interchange (ASCII)) file format and
SUMMARY:
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]]>Agencies
[Federal Register Volume 75, Number 184 (Thursday, September 23, 2010)]
[Notices]
[Pages 57912-57915]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-23807]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project-Rate Order No. WAPA-150
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Extension of Existing Rate-setting Formula and
Approval of FY 2011 Base Charge and Rates.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-150 and Rate Schedule BCP-F8 extending on an interim
basis the existing Boulder Canyon Project (BCP) rate-setting formula
and approving the base charge and rates for FY 2011. The existing
Electric Service Rate Schedule, BCP-F7, expires September 30, 2010. The
Electric Service Rate Schedule contains a rate-setting formula that is
recalculated annually based on updated financial and load data. The
existing rate-setting formula is being extended under Rate Order No.
WAPA-150 and Rate Schedule BCP-F8.
DATES: Rate Schedule BCP-F8 will be placed into effect on an interim
basis on the first day of the first full billing period beginning on
October 1, 2010, and will be in effect until the Federal Energy
Regulatory Commission (FERC) confirms, approves, and places the rate
schedule in effect on a final basis up to September 30, 2015, or until
the rate schedule is superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert
Southwest Customer Service Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-
[[Page 57913]]
6457, (602) 605-2442, e-mail jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved on
an interim basis existing Electric Rate Schedule BCP-120 for BCP
electric service on August 11, 2005 (Rate Order No. WAPA-120, 70 FR
50316 (August 26, 2005)). FERC confirmed and approved the rate schedule
on June 22, 2006, in FERC Docket No. EF05-5091-000 (115 FERC ] 61,362).
The rate schedule became effective on October 1, 2005, and expires
September 30, 2010.
The existing base charge and rates for BCP electric service under
Rate Schedule BCP-F7 expire September 30, 2010. Effective October 1,
2010, Rate Schedule BCP-F7 will be superseded by the new base charge
and rates in Rate Schedule BCP-F8. Under the existing formula, the
rates for BCP electric service consist of a base charge, a capacity
rate, and an energy rate. The provisional base charge is $75,182,522,
the provisional capacity rate is $1.90 per kilowattmonth (kWmonth), and
the provisional energy rate is 9.86 mills/kWh.
The adjusted base charge and rates reflect increases in the overall
O&M program costs, visitor services, uprating program principal
payments, replacement costs, and investment principal and interest
payments. In addition to the annual expenses increasing, the offset of
other revenues is decreasing. The new base charge and rates will
provide sufficient revenue to pay all annual costs, including interest
expense, and repayment of power investment within the allowable
periods.
Western's existing rate-setting formula for electric service
requires recalculation of the base charge and rates annually to ensure
sufficient recovery of project expenses, including interest, and
capital requirements up to September 30, 2015.
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. Under Delegation Order No. 00-037.00 10
CFR part 903, and 18 CFR part 300, I hereby approve Rate Order No.
WAPA-150, which extends the existing rate-setting formula on an interim
basis up to September 30, 2015 and approve the FY 2011 proposed BCP
electric service base charge and rates. Rate Order No. WAPA-150 will be
submitted to the FERC for confirmation and approval on a final basis.
Dated: September 16, 2010.
Daniel B. Poneman,
Deputy Secretary.
Department of Energy
Deputy Secretary
In the matter of: Western Area Power Administration Rate
Extension for the Boulder Canyon Project; Rate Order No. WAPA-150;
Electric Service Rate Schedule Order Confirming and Approving an
Extension of the Boulder Canyon Project Electric Service Rate-
Setting Formula and FY 2011 Base Charge and Rates Rate Schedule
The extension of the existing rate-setting formula and the approval
of base charge and rates for FY 2011 were conducted in accordance with
section 302 of the Department of Energy (DOE) Organization Act (42
U.S.C. 7152). This Act transferred to and vested in the Secretary of
Energy the power marketing functions of the Secretary of the Department
of the Interior and the Bureau of Reclamation under the Reclamation Act
of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by
subsequent laws, particularly section 9(c) of the Reclamation Project
Act of 1939 (43 U.S.C. 485h(c)), and other Acts that specifically apply
to the project involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator, (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy, and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand or to
disapprove such rates to the Federal Energy Regulatory Commission
(FERC). Existing DOE procedures for public participation in electric
service rate adjustments are located at 10 CFR part 903, effective
September 18, 1985 (50 FR 37835), and 18 CFR part 300. Western followed
the DOE procedures in developing the rate formula approved by FERC on
June 22, 2006, at 115 FERC 61362.
Background
On June 22, 2006, in Docket No. EF05-5091-000 at 115 FERC ] 61,362,
FERC issued an order confirming, approving and placing into effect on a
final basis the Electric Service Rate Schedule BCP-F7 for the Boulder
Canyon Project (BCP). The Electric Service Rate Schedule, Rate Order
No. WAPA-120, was approved for 5 years beginning October 1, 2005,
through September 30, 2010. With this interim approval, the existing
rate-setting formula will be extended up to September 30, 2015 under
Rate Order No. WAPA-150.
In addition, new base charge and rates will take effect on the
first day of the first full billing period beginning on or after
October 1, 2010, and will remain in effect until September 30, 2011.
When compared to the existing BCP electric service base charge and
rates under Rate Schedule BCP-F7, the proposed base charge and rates
for BCP electric service reflect an overall composite rate increase of
approximately 4.20 percent effective October 1, 2010. The existing
composite rate under Rate Schedule BCP-F7 is 18.93 mills per
kilowatthour (mills/kWh). The proposed composite rate under Rate
Schedule BCP-F8 is 19.73 mills/kWh.
BCP Electric Service Base Charge and Rates
BCP electric service rates are designed to recover an annual
revenue requirement that includes operation and maintenance expenses,
payments to states, visitor services, the uprating program,
replacements, investment repayment and interest expense. Western's
Power Repayment Study (PRS) allocates the projected annual revenue
requirement for electric service equally between capacity and energy.
The existing formula for developing electric service rates would
sufficiently recover all project expenses (including interest) and
capital requirements up to September 30, 2015.
The BCP electric service base charge and rates are increasing in FY
2011 due to the increase of $5 million in annual expenses from FY 2010
to FY 2011. In addition to the annual expense increase, other revenues,
which act as an offset to total expenses, are also decreasing $2.5
million. A projected carryover at the end of FY 2010 results in
mitigating the increase in the base charge to $4.5 million in FY 2011.
The existing base charge and rates for BCP electric service under
Rate Schedule BCP-F7 expire September 30, 2010. As stated above, Rate
Schedule BCP-F7 will be superseded by the new base charge and rates in
Rate Schedule BCP-F8, effective October 1, 2010. Under the existing
formula, the rates for BCP electric service consist of a base charge, a
capacity rate, and an energy rate. The provisional base charge is
$75,182,522, the provisional capacity
[[Page 57914]]
rate is $1.90 per kilowattmonth (kWmonth), and the provisional energy
rate is 9.86 mills/kWh.
The adjusted base charge and rates reflect increases in the overall
O&M program costs, visitor services, uprating program principal
payments, replacement costs, and investment principal and interest
payments. In addition to the annual expenses increasing, the offset of
other revenues is decreasing. The new base charge and rates will
provide sufficient revenue to pay all annual costs, including interest
expense, and repayment of power investment within the allowable
periods.
Western followed the Procedures for Public Participation in Power
and Transmission Rate Adjustments and Extensions set forth in 10 CFR
part 903.23(a)(2) in extending the BCP rate-setting formula and setting
the new base charge and rates for FY 2011. The steps Western took to
involve interested parties in the rate process were:
1. On February 2, 2010, Western published a notice in the Federal
Register announcing the proposed base charge and rates for BCP,
beginning the public consultation and comment period, and announcing
the public information and public comment forums. (75 FR 5315) Western
also announced the public forum dates as well as access to the BCP rate
adjustment Web site at https://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm.
2. On March 10, 2010, Western hosted an informal customer meeting
in Phoenix, Arizona. At this informal meeting, Western explained the
rationale for the rate adjustment and answered questions.
3. On April 7, 2010, Western held a public information forum at the
Desert Southwest Regional Office in Phoenix, Arizona. Western provided
detailed explanations of the proposed base charge and rates for BCP and
answered questions. Western provided a copy of the rate presentation,
supporting documentation, and informational handouts.
4. On April 22, 2010, Western held a comment forum to give the
public an opportunity to comment for the record. Three individuals
representing entities commented at this forum.
5. Western received one comment letter during the consultation and
comment period, which ended May 3, 2010. All comments have been
considered in preparing this Rate Order.
Comments
Written comments were received from the following organization:
Irrigation & Electrical Districts Association of Arizona, Arizona.
Oral comments were made on behalf of the following organizations:
Arizona Municipal Power Users Association, Arizona.
Irrigation & Electrical Districts Association of Arizona, Arizona.
Metropolitan Water District of Southern California, California.
The comments and responses regarding the electric service base
charge and rates, paraphrased for brevity when not affecting the
meaning of the statement(s), are discussed below. Direct quotes from
comment letters are used for clarification where necessary.
Comment: A commenter stated that he objects to a 3 percent indexing
factor used by the Federal Agencies for increasing their annual
expenses when the Consumer Price Index (CPI) current year was less than
1 percent and the projected CPI for next year is flat, showing no
increase. It was expressed that under these circumstances a 3-percent
increase in expected expenditures is unrealistic.
Response: Reclamation and Western are sensitive to increased costs
to the customers. Although Western's and Reclamation's budgets are not
explicitly tied to the CPI or any other inflation index, both agencies
are conscious of these factors and work diligently to adhere to the
mandate of maintaining the lowest rates possible to the customer while
using sound business principles. Both agencies continue to provide
transparency in development of their annual budgets during the annual
Technical Review Committee process, the Engineering and Operating
Committee meetings and in the annual rate processes. Budgets are
estimated as conservatively as possible, taking into consideration any
increases in labor costs approved by Congress for the upcoming year.
All budgets are ultimately approved in close coordination with BCP
Contractors, to ensure all annual costs are covered while maintaining a
safe and reliable resource.
Comment: A commenter stated that the Bureau of Reclamation's post
September 11, 2001, security costs be adjusted upward or downward with
regard to the CPI. Since the CPI applicable to this budget declined, a
corresponding decline in the security costs should be reflected in this
budget.
Response: As stated in the notes for the Boulder Canyon Project
FY2011 Final Ten Year Operating Plan under Administrative and General
Expense (A&GE), an adjustment for the projected security non-
reimbursable costs has been incorporated into the final total for the
``Post 9/11 Security contract.'' Per the Reclamation Directives &
Standards (D&S) for Reimbursability of Security Costs, establishing
provisions for the reimbursability of Reclamation security costs, under
authority of the Reclamation Act of June 17, 1902 (32 Stat. 388; 43
U.S.C. 391) and acts amendatory thereof and supplementary thereto;
Section 513 of the Consolidated Natural Resources Act of 2008 (Pub. L.
110-229), the projected FY2011 non-reimbursable security projected
reduction in expense, utilizing the CPI as indicated in the D&S, and
totaling $275,000 ($239,000 reducing A&GE and $36,000 reducing Visitor
Services total) was factored into the FY2011 projected expenditures,
per the ``Report to Congress'' and based upon the reimbursability
ceiling for Reclamation. The D&S can be viewed at https://www.usbr.gov/recman/sle/sle05-01.pdf.
Comment: A commenter asked for an explanation of a notation made by
the Bureau of Reclamation regarding the total water scheduling account
being two and one half years in arrears. What impact does this
statement have on the Hoover rate? Why is this account in arrears? What
is being done about it?
Response: After discussions between Reclamation Water Operations,
Power Office and Financial Management, Reclamation notes that the
account itself is not two and one half years in arrears, and the
reference will be removed from the notes under Operations summary
spreadsheets in the Ten Year Operating Plan. It has no impact on the
Hoover rates.
Comment: A commenter encouraged Western to file comments in FERC
Docket No. RM10-11-000, Notice of Inquiry into the Integration of
Variable Energy Resources, similar to those filed by the Bureau of
Reclamation since integration could increase costs to the BCP.
Response: Any costs to the BCP associated with the integration of
variable energy resources are speculative at this point, and therefore
are not included in these proposed base charge and rates.
Availability of Information
Information about this extension and adjustment of electric service
base charge and rates, including power repayment studies, comments,
letters, memoranda, and other supporting material made or kept by
Western used to develop the provisional base charge and rates, is
available for public review in the Desert Southwest Customer Service
Regional Office, Western Area
[[Page 57915]]
Power Administration, 615 South 43rd Avenue, Phoenix, Arizona.
Order
In view of the foregoing and under the authority delegated to me, I
hereby confirm and approve on an interim basis, effective October 1,
2010, Rate Schedule BCP-F8, for the Boulder Canyon Project of the
Western Area Power Administration. The rate schedule shall remain in
effect on an interim basis, pending FERC confirmation and approval of
it or substitute rates on a final basis up to September 30, 2015.
Dated: September 16, 2010.
Daniel B. Poneman, Deputy Secretary.
United States Department of Energy
Western Area Power Administration
Boulder Canyon Project, Arizona, Nevada, Southern California
Schedule of Rates for Electric Service
Effective
The first day of the first full billing period beginning on or
after October 1, 2010, and remaining in effect through September 30,
2015, or until superseded.
Available
In the marketing area serviced by the Boulder Canyon Project (BCP).
Applicable
To power Contractors served by the BCP supplied through one meter,
at one point of delivery, unless otherwise provided by contract.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points established by contract.
Base Charge
The total charge paid by a Contractor for annual capacity and
energy based on the annual revenue requirement. The base charge shall
be composed of an energy component and a capacity component:
Energy Charge: Each Contractor shall be billed monthly an energy
charge equal to the Rate Year Energy Dollar multiplied by the
Contractor's firm energy percentage multiplied by the Contractor's
monthly energy ratio as provided by contract.
Capacity Charge: Each Contractor shall be billed monthly a capacity
charge equal to the Rate Year Capacity Dollar divided by 12 multiplied
by the Contractor's contingent capacity percentage as provided by
contract.
Forecast Rates
Energy: Shall be equal to the Rate Year Energy Dollar divided by
the lesser of the total master schedule energy or 4,501.001 million
kWhs. This rate is to be applied for use of excess energy, unauthorized
overruns, and water pump energy.
Capacity: Shall be equal to the Rate Year Capacity Dollar divided
by 1,951,000 kWs, to be applied for use of unauthorized overruns.
Calculated Energy Rate
Within 90 days after the end of each rate year, a Calculated Energy
Rate shall be calculated. If the energy deemed delivered is greater
than 4,501.001 million kWhs, then the Calculated Energy Rate shall be
applied to each Contractor's energy deemed delivered. A credit or debit
shall be established based on the difference between the Contractor's
Energy Dollar and the Contractor's actual energy charge, to be applied
the following month calculated or as soon as possible thereafter.
Lower Basin Development Fund Contribution Charge
The contribution charge is 4.5 mills/kWh for each kWh measured or
scheduled to an Arizona purchaser and 2.5 mills/kWh for each kWh
measured or scheduled to a California or Nevada purchaser, except for
purchased power.
Billing for Unauthorized Overruns
For each billing period in which there is a contract violation
involving an unauthorized overrun of the contractual power obligations,
such overrun shall be billed at 10 times the Forecast Energy Rate and
Forecast Capacity Rate. The contribution charge shall be applied also
to each kWh of overrun.
Adjustments
None.
[FR Doc. 2010-23807 Filed 9-22-10; 8:45 am]
BILLING CODE 6450-01-P
