Fiscal Year (FY) 2012-2013 Proposed Transmission Rate Adjustments Public Hearing and Opportunities for Public Review and Comment, 78690-78694 [2010-31621]
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78690
Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices
Secondary locations: Director,
National Personnel Records Center,
Military Personnel Records, 9700 Page
Avenue, St. Louis, MO 63132–5100, for
records of retired or former personnel 62
years after retirement or discharged
from the U.S. Navy.’’
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM:
All Navy military members.
CATEGORIES OF RECORDS IN THE SYSTEM:
Name, Social Security Number (SSN),
date of birth, education, training and
qualifications, professional history,
assignments, performance, promotions,
leave and pay entitlements and
deductions.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
10 U.S.C. 5013, Secretary of the Navy
and E.O. 9397 (SSN), as amended.
PURPOSE(S):
The purpose of this system is to
provide secure worldwide personnel
and pay support for Navy members and
their commands. To allow authorized
Navy personnel and pay specialists to
collect, process, modify, transmit, and
store unclassified personnel and pay
data. To support management of leave
and pay entitlements and deductions so
that this information can be provided to
the Defense Finance and Accounting
Service (DFAS) for payroll processing
and preparation of the Leave and
Earnings Statements (LES).
ROUTINE USES OF RECORDS MAINTAINED IN THE
SYSTEM, INCLUDING CATEGORIES OF USERS AND
THE PURPOSES OF SUCH USES:
In additional to those disclosures
generally permitted under 5 U.S.C.
552a(b) of the Privacy Act of 1974, these
records or information contained
therein may specifically be disclosed
outside the DoD as a routine use
pursuant to 5 U.S.C. 552a(b)(3) as
follows:
The DoD ‘Blanket Routine Uses’ that
appear at the beginning of the Navy’s
compilation of systems of records
notices apply to this system.
Policies and practices for storing,
retrieving, accessing, retaining, and
disposing of records in the system:
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STORAGE:
Paper and automated records
maintained by Space and Warfare
Systems Center Atlantic.
RETRIEVABILITY:
SAFEGUARDS:
Password controlled system, file, and
element access based on predefined
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RETENTION AND DISPOSAL:
Records will be maintained by the
primary record holder for current U.S.
Navy members, and for 62 years after
retirement or discharged from the U.S.
Navy. Thereafter, records will be
maintained by the secondary record
holder at the National Personnel
Records Center.
SYSTEM MANAGER(S) AND ADDRESS:
Policy Official: Commander, Navy
Personnel Command (PERS–33), 5720
Integrity Drive, Millington, TN 38055–
3120.
Primary Record Holder: Personnel
Office or Personnel Support Detachment
that provides administrative support for
the local activity where assigned.
Official mailing addresses are published
in the Standard Navy Distribution List.
Secondary locations: Director,
National Personnel Records Center,
Military Personnel Records, 9700 Page
Avenue, St. Louis, MO 63132–5100, for
records of retired or former personnel 62
years after retirement or discharged
from the U.S. Navy.
NOTIFICATION PROCEDURE:
Individuals seeking to determine
whether this system of records contains
information about themselves should
address written inquiries to the
Personnel Office or Personnel Support
Detachment providing administrative
support for the local activity where they
are assigned. Official mailing addresses
are published in the Standard Navy
Distribution List.
Secondary location: Director, National
Personnel Records Center, Military
Personnel Records, 9700 Page Avenue,
St. Louis, MO 63132–5100, for records
of retired or former personnel 62 years
after retirement or discharge from the
U.S. Navy.
The request should include full name,
Social Security Number, and address of
the individual concerned and should be
signed. The system manager may
require an original signature or a
notarized signature as a means of
proving the identity of the individual
requesting access to the records.
RECORD ACCESS PROCEDURE:
Records are retrieved by name and
Social Security Number (SSN).
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need-to-know. Physical access to
terminals, terminal rooms, buildings
and activities’ grounds are controlled by
locked terminals and rooms, guards,
personnel screening and visitor
registers.
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CONTESTING RECORD PROCEDURES:
The Navy’s rules for accessing
records, and for contesting contents and
appealing initial agency determinations
are published in Secretary of the Navy
Instruction 5211.5; 32 CFR part 701; or
may be obtained from the system
manager.
RECORDS SOURCE CATEGORIES:
Official records and systems
maintaining personnel information,
professional qualifications, and
educational institutions. These records
and systems include the Navy Military
Personnel Records System, Enlisted
Master File Automated System, Officer
Master File Automated System, Reserve
Command Management System, OnLine Distribution Information System,
and Education and Training Records.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
[FR Doc. 2010–31577 Filed 12–15–10; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF ENERGY
Bonneville Power Administration
[BPA File No.: BP–12]
Fiscal Year (FY) 2012–2013 Proposed
Transmission Rate Adjustments Public
Hearing and Opportunities for Public
Review and Comment
Bonneville Power
Administration (BPA), Department of
Energy (DOE).
ACTION: Notice of FY 2012–2013
proposed transmission rate adjustments.
AGENCY:
BPA is holding a consolidated
rate proceeding, Docket No. BP–12, to
establish power and transmission rates
for FY 2012–2013. The purpose of this
Federal Register Notice is to provide
notice of the proposed rates for
SUMMARY:
Individuals seeking access to records
about themselves should address
written inquiries to the Personnel Office
or Personnel Support Detachment
providing administrative support for the
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local activity where they are assigned.
Official mailing addresses are published
in the Standard Navy Distribution List.
Secondary location: Director, National
Personnel Records Center, Military
Personnel Records, 9700 Page Avenue,
St. Louis, MO 63132–5100, for records
of retired or former personnel 62 years
after retirement or discharge from the
U.S. Navy.
Written requests should contain full
name, Social Security Number, and
address of the individual concerned and
should be signed. The system manager
may require an original signature or a
notarized signature as a means of
proving the identity of the individual
requesting access to the records.
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transmission and for the two required
ancillary services (listed below, part
IV.C.). BPA has previously issued a
separate Federal Register Notice to
provide notice of the proposed rates for
power, the other ancillary services, and
all control area services.
The Pacific Northwest Electric Power
Planning and Conservation Act
(Northwest Power Act) provides that
BPA must establish and periodically
review and revise its rates so that they
are adequate to recover, in accordance
with sound business principles, the
costs associated with the acquisition,
conservation, and transmission of
electric power, including amortization
of the Federal investment in the Federal
Columbia River Power System (FCRPS)
over a reasonable number of years and
BPA’s other costs and expenses. The
Northwest Power Act also requires that
BPA’s rates be established based on the
record of a formal hearing, and for
transmission rates only, that the costs of
the Federal transmission system be
equitably allocated between Federal and
non-Federal power utilizing the system.
By this notice, BPA announces the
commencement of the transmission
portion of a power and transmission rate
adjustment proceeding, for rates to
become effective on October 1, 2011.
DATES: Anyone who has previously
intervened in the BP–12 rate proceeding
is automatically a party to this portion
of the proceeding as well. Anyone who
has not intervened in the BP–12 rate
proceeding and wishes to become a
party to the proceeding for purposes of
the transmission portion of the case
only must intervene by sending notice
to the addresses listed below no later
than 5 p.m. on December 23, 2010.
Parties that intervene at this time may
not participate in the power portion of
the rate proceeding.
The transmission portion of the BP–
12 rate adjustment proceeding begins
with a prehearing conference at 9 a.m.
on December 17, 2010, in the BPA Rates
Hearing Room, 2nd floor, 911 NE. 11th
Avenue, Portland, Oregon 97232.
Written comments by non-party
participants must be received by
March 8, 2011 to be considered in the
Administrator’s ROD.
ADDRESSES:
1. Petitions to intervene should be
directed to: Hearing Clerk—L–7,
Bonneville Power Administration, 905
NE. 11th Avenue, Portland, Oregon
97232, or may be e-mailed to
rateclerk@bpa.gov. In addition, copies
of the petition must be served
concurrently on BPA’s General Counsel
and directed to both Mr. Peter J. Burger,
LP–7, and Mr. Barry Bennett, LC–7,
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Office of General Counsel, 905 NE. 11th
Avenue, Portland, Oregon 97232, or via
e-mail to pjburger@bpa.gov and
bbennett@bpa.gov (see section III.A. for
more information regarding
interventions).
2. Written comments by participants
should be submitted to the Public
Engagement Office, DKE–7, Bonneville
Power Administration, P.O. Box 14428,
Portland, Oregon 97293. Participants
may also submit comments by e-mail at:
https://www.bpa.gov/comment. BPA
requests that all comments and
documents intended to be part of the
official record in this rate proceeding
contain the designation BP–12 in the
subject line.
FOR FURTHER INFORMATION CONTACT:
Ms. Heidi Y. Helwig, DKC–7, Public
Affairs Specialist, Bonneville Power
Administration, P.O. Box 3621,
Portland, Oregon 97208; by phone toll
free at 1–800–622–4520; or via e-mail to
hyhelwig@bpa.gov.
Responsible Officials: Ms. Rebecca E.
Fredrickson, Transmission Rates
Manager, is the official responsible for
the development of BPA’s transmission,
ancillary and control area services
(ACS) rates.
SUPPLEMENTARY INFORMATION:
Table of Contents
Part I. Introduction and Procedural
Background
Part II. Scope of 2012 Rate Proceeding
Part III. Public Participation in BP–12
Part IV. Summary of Rate Proposal
Part V. Proposed 2012 Rate Schedules
Part I—Introduction and Procedural
Background
Section 7(i) of the Northwest Power
Act, 16 U.S.C. 839e(i), requires that
BPA’s rates be established according to
certain procedures, including
publication in the Federal Register of
this notice of the proposed rates; one or
more hearings conducted as
expeditiously as practicable by a
Hearing Officer; opportunity for both
oral presentation and written
submission of views, data, questions,
and arguments related to the proposed
rates; and a decision by the
Administrator based on the record.
BPA’s rate proceedings are further
governed by BPA’s Procedures
Governing Bonneville Power
Administration Rate Hearings, 51
Federal Register 7611 (1986), which
implement and expand the statutory
requirements.
This proceeding is being conducted
under the rule for general rate
proceedings, section 1010.4 of BPA’s
Procedures. A proposed schedule for the
proceeding is provided below. A final
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schedule will be established by the
Hearing Officer at the prehearing
conference.
Prehearing/BPA Direct
Case.
Intervention Deadline ........
Clarification .......................
Motions to Strike ...............
Data Request Deadline ....
Answers to Motions to
Strike.
Data Response Deadline
Parties File Direct Case ...
Clarification .......................
Motions to Strike ...............
Data Request Deadline ....
Answers to Motions to
Strike.
Data Response Deadline
Close of Participant Comments.
Litigants File Rebuttal .......
Clarification .......................
Motions to Strike ...............
Data Request Deadline ....
Answers to Motions to
Strike.
Data Response Deadline
Cross-Examination ...........
Initial Briefs Filed ..............
Oral Argument ..................
Draft ROD Issued .............
Briefs on Exceptions .........
Final ROD—Final Studies
December 17.
December 23.
January 4–7.
January 11.
January 11.
January 18.
January 18.
February 8.
February 14–15.
February 22.
February 22.
March 1.
March 1.
March 8.
March
March
March
March
March
8.
14–15.
17.
17.
25.
March 25.
March 28–April
1.
May 2.
May 12.
June 14.
June 24.
July 25.
Section 1010.7 of BPA’s Procedures
prohibits ex parte communications. The
ex parte rule applies to all BPA and
DOE employees and contractors. Except
as provided below, any outside
communications with BPA and/or DOE
personnel regarding the merits of any
issue in BPA’s rate proceeding by other
Executive Branch agencies, Congress,
existing or potential BPA customers
(including Tribes), or nonprofit or
public interest groups are considered
outside communications and are subject
to the ex parte rule. The rule does not
apply to communications relating to: (1)
Matters of procedure only (the status of
the rate proceeding, for example); (2)
exchanges of data in the course of
business or under the Freedom of
Information Act; (3) requests for factual
information; (4) matters for which BPA
is responsible under statutes other than
the ratemaking provisions; or (5) matters
which all parties agree may be made on
an ex parte basis. The ex parte rule
remains in effect until the
Administrator’s Final ROD is issued,
which is scheduled to occur on or about
July 25, 2011.
Part II—Scope of 2012 Rate Proceeding
A. Joint Rate Proceeding
BPA is holding one wholesale power
and transmission rate proceeding with
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one schedule, one record, and one ROD.
As noted above in the summary, BPA
has issued a separate Federal Register
Notice to provide notice of the proposed
power rates and rates for certain
ancillary services and all control area
services.
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B. 2010 Integrated Program Review
BPA began its 2010 Integrated
Program Review (IPR) process in May
2010. The IPR process is designed to
allow people interested in BPA’s
program levels an opportunity to review
and comment on all of BPA’s expense
and capital spending level estimates in
the same forum prior to the use of those
estimates in setting rates. Concurrent
with the IPR, BPA held regional
conversations about risk mitigation and
debt management practices.
The 2010 IPR focused on FY 2012 and
2013 program levels for BPA’s Power
Services and Transmission Services as
well as a review of FY 2011 program
levels. BPA held 19 technical
workshops and two general manager
meetings at which proposed spending
levels were presented for each of BPA’s
programs. BPA carefully reviewed and
considered the 26 written comments
and numerous oral comments on FY
2012 and 2013 program levels that were
provided during this public process.
On October 27, 2010, BPA issued the
Final Close-Out Letter and
accompanying final report for the IPR,
which summarizes the comments
received and outlines BPA’s responses.
The report also summarizes comments
and BPA’s responses on the regional
conversations about risk mitigation and
debt management. In the Final CloseOut Letter and report, BPA established
the program level cost estimates for both
power and transmission rates that are
used in the Initial Proposal. BPA does
not anticipate additional public review
of proposed spending levels. However,
an abbreviated IPR process may be held
if conditions warrant. BPA would
conduct this process separately from the
rate proceeding to share updates and
solicit feedback from customers and
constituents before the final program
levels are incorporated into the final
rates.
C. Rate Case Workshops
In preparation for the BP–12 rate
proceeding, BPA held several public
rate case workshops with customers and
interested parties from March through
September 2010. During the workshops,
BPA staff presented and discussed
information about costs, load and
resource forecasting, generation inputs
pricing, segmentation, revenue
forecasts, load forecasts, risk analysis
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and mitigation, products, pricing, and
rate design. Customers and interested
parties had extensive opportunity to
participate, raise issues, present
alternative proposals, and comment on
the information BPA staff presented.
The comments and alternatives received
during these workshops have assisted in
the preparation of the Initial Proposal.
D. Scope of the Rate Proceeding
This section provides guidance to the
Hearing Officer as to those matters that
are within the scope of the rate
proceeding and those that are outside
the scope.
1. Program Cost Estimates
Some of the decisions that determine
program costs and spending levels have
been made in the IPR public review
process outside the rate proceeding. See
section II.B. BPA’s spending levels for
investments and expenses are not
determined or subject to review in rate
proceedings.
Pursuant to section 1010.3(f) of BPA’s
Procedures, the Administrator directs
the Hearing Officer to exclude from the
record all argument, testimony, or other
evidence that challenges the
appropriateness or reasonableness of the
Administrator’s decisions on cost and
spending levels. If, and to the extent
that, any re-examination of spending
levels is necessary, such re-examination
will occur outside of the rate
proceeding. This exclusion does not
extend to portions of the revenue
requirements related to interest rate
forecasts, interest expense and credit,
Treasury repayment schedules, forecasts
of depreciation, forecasts of system
replacements used in repayment
studies, generation acquisition expense
incurred by Transmission Services,
minimum required net revenue, and the
costs of risk mitigation actions resulting
from the expense and revenue
uncertainties included in the risk
analysis. The Administrator also directs
the Hearing Officer to exclude argument
and evidence regarding BPA’s debt
management practices and policies. See
section II.D.2.
2. Federal and Non-Federal Debt Service
and Debt Management
During the 2010 IPR and in other
forums, BPA provided the public with
background information on BPA’s
internal Federal and non-Federal debt
management policies and practices.
While these policies and practices are
not decided in the IPR forum, these
discussions were intended to inform
interested parties about these matters so
that they would better understand
BPA’s debt structure. Notwithstanding
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the public discussions, BPA’s debt
management policies and practices
remain outside the scope of the rate
proceeding.
Pursuant to § 1010.3(f) of BPA’s
Procedures, the Administrator hereby
directs the Hearing Officer to exclude
from the record all argument, testimony,
or other evidence that seeks in any way
to address the appropriateness or
reasonableness of BPA’s debt
management policies and practices.
3. Potential Environmental Impacts
Environmental impacts are addressed
in a concurrent National Environmental
Policy Act (NEPA) process. See section
II.E.
Pursuant to § 1010.3(f) of BPA’s
Procedures, the Administrator directs
the Hearing Officer to exclude from the
record all argument, testimony, or other
evidence that seeks in any way to
address the potential environmental
impacts of the rates being developed in
this rate proceeding.
E. The National Environmental Policy
Act
BPA is in the process of assessing the
potential environmental effects of its
proposed power and transmission rates,
consistent with the NEPA. The NEPA
process is conducted separately from
the rate proceeding. As discussed in
section II.D.3., all evidence and
argument addressing potential
environmental impacts of rates being
developed in the BP–12 rate proceeding
are excluded from the rate proceeding
hearing record. Rather, comments on
environmental effects should be
directed to the NEPA process.
Because this proposal involves BPA’s
ongoing business practices related to
rates, BPA is reviewing the proposal for
consistency with BPA’s Business Plan
Environmental Impact Statement
(Business Plan EIS), completed in June
1995 (BOE/EIS–0183). This policy-level
EIS evaluates the environmental
impacts of a range of business plan
alternatives for BPA that could be varied
by applying various policy modules,
including one for rates. Any
combination of alternative policy
modules should allow BPA to balance
its costs and revenues. The Business
Plan EIS also includes response
strategies, such as adjustments to rates,
that BPA could implement if BPA’s
costs exceed its revenues.
In August 1995, the BPA
Administrator issued a ROD (Business
Plan ROD) that adopted the MarketDriven Alternative from the Business
Plan EIS. This alternative was selected
because, among other reasons, it allows
BPA to: (1) Recover costs through rates;
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(2) competitively market BPA’s products
and services; (3) develop rates that meet
customer needs for clarity and
simplicity; (4) continue to meet BPA’s
legal mandates; and (5) avoid adverse
environmental impacts. BPA also
committed to apply as many response
strategies as necessary when BPA’s costs
and revenues do not balance.
In April 2007, BPA completed and
issued a Supplement Analysis to the
Business Plan EIS. This Supplement
Analysis found that the Business Plan
EIS’s relationship-based and policylevel analysis of potential
environmental impacts from BPA’s
business practices remains valid, and
that BPA’s current business practices
remain consistent with BPA’s MarketDriven Alternative approach. The
Business Plan EIS and ROD thus
continue to provide a sound basis for
making determinations under NEPA
concerning BPA’s policy-level
decisions, including rates.
Because the proposed rates likely
would assist BPA in accomplishing the
goals identified in the Business Plan
ROD, the proposal appears consistent
with these aspects of the Market-Driven
Alternative. In addition, this rate
proposal is similar to the type of rate
designs evaluated in the Business Plan
EIS; thus, implementation of this rate
proposal would not be expected to
result in environmental impacts
significantly different from those
examined in the Business Plan EIS.
Therefore, BPA expects that this rate
proposal likely will fall within the
scope of the Market-Driven Alternative
that was evaluated in the Business Plan
EIS and adopted in the Business Plan
ROD.
As part of the Administrator’s ROD
that will be prepared for the BP–12 rate
proceeding, BPA may tier its decision
under NEPA to the Business Plan ROD.
However, depending upon the ongoing
environmental review, BPA may instead
issue another appropriate NEPA
document. Comments regarding the
potential environmental effects of the
proposal may be submitted to Katherine
Pierce, NEPA Compliance Officer, KEC–
4, Bonneville Power Administration,
905 NE 11th Avenue, Portland, OR
97232. Any such comments received by
the comment deadline for Participant
Comments identified in section III.A.
below will be considered by BPA’s
NEPA compliance staff in the NEPA
process that will be conducted for this
proposal.
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Part III—Public Participation in BP–12
A. Distinguishing Between
‘‘Participants’’ and ‘‘Parties’’
BPA distinguishes between
‘‘participants in’’ and ‘‘parties to’’ the
hearings. Apart from the formal hearing
process, BPA will receive written
comments, views, opinions, and
information from ‘‘participants,’’ who
may submit comments without being
subject to the duties of, or having the
privileges of, parties. Participants’
written comments will be made part of
the official record and considered by the
Administrator. Participants are not
entitled to participate in the prehearing
conference; may not cross-examine
parties’ witnesses, seek discovery, or
serve or be served with documents; and
are not subject to the same procedural
requirements as parties. BPA customers
whose rates are subject to this
proceeding, or their affiliated customer
groups, may not submit participant
comments. Members or employees of
organizations that have intervened in
the rate proceeding may submit general
comments as participants but may not
use the comment procedures to address
specific issues raised by their intervenor
organizations.
Written comments by participants
will be included in the record if they are
received by March 8, 2011. Written
views, supporting information,
questions, and arguments should be
submitted to the address listed in the
ADDRESSES section of this Notice.
Entities or people become parties to
the proceeding by filing petitions to
intervene, which must state the name
and address of the entity or person
requesting party status and the entity’s
or person’s interest in the hearing. BPA
customers and affiliated customer
groups will be granted intervention
based on petitions filed in conformance
with BPA’s Procedures. Other
petitioners must explain their interests
in sufficient detail to permit the Hearing
Officer to determine whether the
petitioners have a relevant interest in
the hearing. Pursuant to Rule 1010.1(d)
of BPA’s Procedures, BPA waives the
requirement in Rule 1010.4(d) that an
opposition to an intervention petition be
filed and served 24 hours before the
prehearing conference. The time limit
for opposing a timely intervention will
be established at the prehearing
conference. Any party, including BPA,
may oppose a petition for intervention.
All petitions will be ruled on by the
Hearing Officer. Late interventions are
strongly disfavored. Opposition to an
untimely petition to intervene must be
filed and received by BPA within two
days after service of the petition.
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B. Developing the Record
The hearing record will include,
among other things, the transcripts of
the hearing, written evidence and
argument entered into the record by
BPA and the parties, written comments
from participants, and other material
accepted into the record by the Hearing
Officer. The Hearing Officer will then
review the record and certify the record
to the Administrator for final decision.
The Administrator will develop final
rates based on the record and such other
materials and information as may have
been submitted to or developed by the
Administrator. The Administrator will
serve copies of the Final ROD on all
parties. BPA will file its rates with the
Commission for confirmation and
approval after issuance of the Final
ROD.
Part IV—Summary of Rate Proposal
A. Partial Settlement of Transmission
Rates
Transmission Services and most of its
customers are parties to a Partial
Settlement Agreement that provides for
Transmission Services to submit a
Settlement Proposal that incorporates
the provisions of the agreement. Under
the Partial Settlement Agreement,
Transmission Services will propose
maintaining current FY 2010–2011
rates, with no rate increase for the FY
2012–2013 period, for all transmission
services and for two ancillary services:
Scheduling, System Control and
Dispatch Service and Reactive Supply
and Voltage Control from Generation
Sources Service. The remaining
ancillary services and all control area
services are not covered by the partial
settlement.
The Partial Settlement Agreement also
includes changes to the Failure to
Comply Penalty Charge, the Network
Integration Rate, and the Integration of
Resources Rate, as well as changes to
several definitions in the General Rate
Schedule Provisions. In addition, the
agreement restricts the arguments
parties to the settlement may make
regarding the reliance of Power Services
on reserves attributable to Transmission
Services and commits BPA to various
public processes regarding rates and
other issues.
Under the Partial Settlement
Agreement the Administrator will
establish the Montana Intertie (IM) and
Eastern Intertie (IE) rates, and consider
revisions to the Townsend-Garrison
Transmission rate, in a contested
process in this rate case. However,
under the agreement, BPA staff will
propose that the IM and IE rates be no
higher than the existing rates, and the
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signatories to the settlement agreement
agree not to present evidence or
argument that either rate should be
higher than the existing rates.
The Partial Settlement Agreement
recognizes the possibility that parties to
the BP–12 rate proceeding that have not
signed the Partial Settlement Agreement
may object to the Settlement Proposal.
If any party objects to the Settlement
Proposal, BPA has the right to submit a
revised proposal. If BPA submits a
revised proposal, signatories to the
Partial Settlement Agreement may
contest any aspect of the revised
proposal. If BPA does not revise the
Settlement Proposal, and the
Administrator establishes transmission
rates consistent with the Settlement
Proposal, the signatories may not
challenge approval of the rates by the
Commission or in any judicial forum.
B. Transmission Rates
BPA is proposing four different rates
for the use of its Integrated Network
segment, four different rates for use of
intertie segments, and several other
rates for various purposes.
The four rates for use of the Integrated
Network segment are:
Formula Power Transmission (FPT–
12) rate—The FPT rate is based on the
cost of using specific types of facilities,
including a distance component for the
use of transmission lines, and is charged
on a contract demand basis.
Integration of Resources (IR–12) rate—
The IR rate is a postage stamp, contract
demand rate for the use of the Integrated
Network, similar to Point-to-Point (PTP)
service.
Network Integration Transmission
(NT–12) rate—The NT rate applies to
customers taking network integration
service under the Open Access
Transmission Tariff (OATT) and allows
customers to flexibly serve their retail
load.
Point-to-Point (PTP–12) rate—The
PTP rate is a contract demand rate that
applies to customers taking point-topoint service on BPA’s network
facilities under the OATT. It provides
customers with flexible service from
identified Points of Receipt to identified
Points of Delivery. There are separate
PTP rates for: Long-term firm service;
daily firm and non-firm service; and
hourly firm and non-firm service.
In addition to the four rates for
network use, other proposed
transmission rates include the
following:
The Southern Intertie (IS–12) and the
Montana Intertie (IM–12) rates are
contract demand rates that apply to
customers taking point-to-point service
under the OATT on the Southern
VerDate Mar<15>2010
18:00 Dec 15, 2010
Jkt 223001
Intertie and Montana Intertie. These
rates are structured similarly to the rate
for point-to-point service on network
facilities.
The Townsend-Garrison Transmission
(TGT–12) and the Eastern Intertie (IE–
12) rates are developed pursuant to the
Montana Intertie agreement.
The Use-of-Facilities (UFT–12) rate
establishes a formula for charging for
the use of a specific facility based on the
annual cost of that facility.
The Advance Funding (AF–12) rate
allows Transmission Services to collect
the capital and related costs of specific
facilities through an advance-funding
mechanism.
Other charges that may apply include:
A Delivery Charge for the use of lowvoltage delivery substations; a Power
Factor Penalty Charge; a Reservation Fee
for customers that postpone their
service commencement dates;
incremental rates for transmission
requests that require new facilities; a
penalty charge for failure to comply
with dispatch, curtailment, redispatch,
or load shedding orders; and an
Unauthorized Increase Charge for
customers that exceed their contracted
amounts.
C. Ancillary Services Rates
In this Federal Register notice BPA is
proposing rates for two ancillary
services: Scheduling, System Control,
and Dispatch Service, and Reactive
Supply and Voltage Control from
Generation Sources Service.
3. Changes to Transmission Rates and
Rate Schedules
b. Failure To Comply Penalty Charge
BPA proposes to change the rate for
the Failure to Comply Penalty Charge
from 1000 mills per kilowatthour to the
greater of 500 mills per kilowatthour or
150% of an hourly energy index in the
Pacific Northwest.
c. Integration of Resources (IR–12)—
Ratchet Demand Relief
BPA proposes to add language to the
section on Ratchet Demand Relief
providing that relief from the Ratchet
Demand is not available in the month in
which the Ratchet Demand was
established. For that month, the
customer will be assessed charges based
upon the highest hourly Scheduled
Demand Billing Factor.
d. Changes to Definitions
BPA proposes to modify the
definitions of Dynamic Schedule,
Dynamic Transfer, Daily Service,
Monthly Service, and Weekly Service.
Part V—Proposed 2012 Rate Schedules
BPA’s proposed 2012 Transmission
Rate Schedules are a part of this notice
and are available for viewing and
downloading on BPA’s Web site at
https://www.bpa.gov/corporate/ratecase/
2012/. Copies of the proposed rate
schedules also are available for viewing
in BPA’s Public Reference Room at the
BPA Headquarters, 1st Floor, 905 NE
11th Avenue, Portland, OR 97232.
Issued this 7th day of December, 2010.
Stephen J. Wright,
Administrator and Chief Executive Officer.
[FR Doc. 2010–31621 Filed 12–15–10; 8:45 am]
BILLING CODE P
a. Network Integration Transmission
(NT–12) rate
The NT rate applies to customers
taking network integration service under
the OATT and allows customers to
flexibly serve their retail load.
Transmission Services is proposing to
delete CSL and add a Short Distance
Discount (SDD) to the NT rate, applied
to the NT Base Charge. The SDD would
apply when a Customer has a resource
that: (i) Is designated as a Network
Resource in the customer’s NT Service
Agreement for at least 12 months; and
(ii) uses FCRTS facilities for less than 75
circuit miles for delivery to the
Customer’s Network Load. A designated
network resource that is a system sale
(the designated resource is not
associated with a specific generating
resource) would not qualify for the SDD.
Additionally, any designated resource
that is eligible for the SDD must be
noted as such in the NT Service
Agreement to receive the billing credit.
PO 00000
Frm 00028
Fmt 4703
Sfmt 4703
DEPARTMENT OF ENERGY
Bonneville Power Administration
[BPA File No.: REP–12]
Proposed Residential Exchange
Program Settlement Agreement
Proceeding (REP–12); Public Hearing
and Opportunities for Public Review
and Comment
Bonneville Power
Administration (BPA), Department of
Energy (DOE).
ACTION: Notice of Residential Exchange
Program Settlement Agreement
Proceeding (REP–12).
AGENCY:
BPA is conducting the 2012
Residential Exchange Program
Settlement Agreement Proceeding (REP–
12) to review the terms and conditions
of a proposed 17-year settlement of
issues regarding the implementation of
SUMMARY:
E:\FR\FM\16DEN1.SGM
16DEN1
Agencies
[Federal Register Volume 75, Number 241 (Thursday, December 16, 2010)]
[Notices]
[Pages 78690-78694]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31621]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Bonneville Power Administration
[BPA File No.: BP-12]
Fiscal Year (FY) 2012-2013 Proposed Transmission Rate Adjustments
Public Hearing and Opportunities for Public Review and Comment
AGENCY: Bonneville Power Administration (BPA), Department of Energy
(DOE).
ACTION: Notice of FY 2012-2013 proposed transmission rate adjustments.
-----------------------------------------------------------------------
SUMMARY: BPA is holding a consolidated rate proceeding, Docket No. BP-
12, to establish power and transmission rates for FY 2012-2013. The
purpose of this Federal Register Notice is to provide notice of the
proposed rates for
[[Page 78691]]
transmission and for the two required ancillary services (listed below,
part IV.C.). BPA has previously issued a separate Federal Register
Notice to provide notice of the proposed rates for power, the other
ancillary services, and all control area services.
The Pacific Northwest Electric Power Planning and Conservation Act
(Northwest Power Act) provides that BPA must establish and periodically
review and revise its rates so that they are adequate to recover, in
accordance with sound business principles, the costs associated with
the acquisition, conservation, and transmission of electric power,
including amortization of the Federal investment in the Federal
Columbia River Power System (FCRPS) over a reasonable number of years
and BPA's other costs and expenses. The Northwest Power Act also
requires that BPA's rates be established based on the record of a
formal hearing, and for transmission rates only, that the costs of the
Federal transmission system be equitably allocated between Federal and
non-Federal power utilizing the system. By this notice, BPA announces
the commencement of the transmission portion of a power and
transmission rate adjustment proceeding, for rates to become effective
on October 1, 2011.
DATES: Anyone who has previously intervened in the BP-12 rate
proceeding is automatically a party to this portion of the proceeding
as well. Anyone who has not intervened in the BP-12 rate proceeding and
wishes to become a party to the proceeding for purposes of the
transmission portion of the case only must intervene by sending notice
to the addresses listed below no later than 5 p.m. on December 23,
2010. Parties that intervene at this time may not participate in the
power portion of the rate proceeding.
The transmission portion of the BP-12 rate adjustment proceeding
begins with a prehearing conference at 9 a.m. on December 17, 2010, in
the BPA Rates Hearing Room, 2nd floor, 911 NE. 11th Avenue, Portland,
Oregon 97232.
Written comments by non-party participants must be received by
March 8, 2011 to be considered in the Administrator's ROD.
ADDRESSES:
1. Petitions to intervene should be directed to: Hearing Clerk--L-
7, Bonneville Power Administration, 905 NE. 11th Avenue, Portland,
Oregon 97232, or may be e-mailed to rateclerk@bpa.gov. In addition,
copies of the petition must be served concurrently on BPA's General
Counsel and directed to both Mr. Peter J. Burger, LP-7, and Mr. Barry
Bennett, LC-7, Office of General Counsel, 905 NE. 11th Avenue,
Portland, Oregon 97232, or via e-mail to pjburger@bpa.gov and
bbennett@bpa.gov (see section III.A. for more information regarding
interventions).
2. Written comments by participants should be submitted to the
Public Engagement Office, DKE-7, Bonneville Power Administration, P.O.
Box 14428, Portland, Oregon 97293. Participants may also submit
comments by e-mail at: https://www.bpa.gov/comment. BPA requests that
all comments and documents intended to be part of the official record
in this rate proceeding contain the designation BP-12 in the subject
line.
FOR FURTHER INFORMATION CONTACT:
Ms. Heidi Y. Helwig, DKC-7, Public Affairs Specialist, Bonneville Power
Administration, P.O. Box 3621, Portland, Oregon 97208; by phone toll
free at 1-800-622-4520; or via e-mail to hyhelwig@bpa.gov.
Responsible Officials: Ms. Rebecca E. Fredrickson, Transmission
Rates Manager, is the official responsible for the development of BPA's
transmission, ancillary and control area services (ACS) rates.
SUPPLEMENTARY INFORMATION:
Table of Contents
Part I. Introduction and Procedural Background
Part II. Scope of 2012 Rate Proceeding
Part III. Public Participation in BP-12
Part IV. Summary of Rate Proposal
Part V. Proposed 2012 Rate Schedules
Part I--Introduction and Procedural Background
Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i),
requires that BPA's rates be established according to certain
procedures, including publication in the Federal Register of this
notice of the proposed rates; one or more hearings conducted as
expeditiously as practicable by a Hearing Officer; opportunity for both
oral presentation and written submission of views, data, questions, and
arguments related to the proposed rates; and a decision by the
Administrator based on the record. BPA's rate proceedings are further
governed by BPA's Procedures Governing Bonneville Power Administration
Rate Hearings, 51 Federal Register 7611 (1986), which implement and
expand the statutory requirements.
This proceeding is being conducted under the rule for general rate
proceedings, section 1010.4 of BPA's Procedures. A proposed schedule
for the proceeding is provided below. A final schedule will be
established by the Hearing Officer at the prehearing conference.
------------------------------------------------------------------------
------------------------------------------------------------------------
Prehearing/BPA Direct Case............. December 17.
Intervention Deadline.................. December 23.
Clarification.......................... January 4-7.
Motions to Strike...................... January 11.
Data Request Deadline.................. January 11.
Answers to Motions to Strike........... January 18.
Data Response Deadline................. January 18.
Parties File Direct Case............... February 8.
Clarification.......................... February 14-15.
Motions to Strike...................... February 22.
Data Request Deadline.................. February 22.
Answers to Motions to Strike........... March 1.
Data Response Deadline................. March 1.
Close of Participant Comments.......... March 8.
Litigants File Rebuttal................ March 8.
Clarification.......................... March 14-15.
Motions to Strike...................... March 17.
Data Request Deadline.................. March 17.
Answers to Motions to Strike........... March 25.
Data Response Deadline................. March 25.
Cross-Examination...................... March 28-April 1.
Initial Briefs Filed................... May 2.
Oral Argument.......................... May 12.
Draft ROD Issued....................... June 14.
Briefs on Exceptions................... June 24.
Final ROD--Final Studies............... July 25.
------------------------------------------------------------------------
Section 1010.7 of BPA's Procedures prohibits ex parte
communications. The ex parte rule applies to all BPA and DOE employees
and contractors. Except as provided below, any outside communications
with BPA and/or DOE personnel regarding the merits of any issue in
BPA's rate proceeding by other Executive Branch agencies, Congress,
existing or potential BPA customers (including Tribes), or nonprofit or
public interest groups are considered outside communications and are
subject to the ex parte rule. The rule does not apply to communications
relating to: (1) Matters of procedure only (the status of the rate
proceeding, for example); (2) exchanges of data in the course of
business or under the Freedom of Information Act; (3) requests for
factual information; (4) matters for which BPA is responsible under
statutes other than the ratemaking provisions; or (5) matters which all
parties agree may be made on an ex parte basis. The ex parte rule
remains in effect until the Administrator's Final ROD is issued, which
is scheduled to occur on or about July 25, 2011.
Part II--Scope of 2012 Rate Proceeding
A. Joint Rate Proceeding
BPA is holding one wholesale power and transmission rate proceeding
with
[[Page 78692]]
one schedule, one record, and one ROD. As noted above in the summary,
BPA has issued a separate Federal Register Notice to provide notice of
the proposed power rates and rates for certain ancillary services and
all control area services.
B. 2010 Integrated Program Review
BPA began its 2010 Integrated Program Review (IPR) process in May
2010. The IPR process is designed to allow people interested in BPA's
program levels an opportunity to review and comment on all of BPA's
expense and capital spending level estimates in the same forum prior to
the use of those estimates in setting rates. Concurrent with the IPR,
BPA held regional conversations about risk mitigation and debt
management practices.
The 2010 IPR focused on FY 2012 and 2013 program levels for BPA's
Power Services and Transmission Services as well as a review of FY 2011
program levels. BPA held 19 technical workshops and two general manager
meetings at which proposed spending levels were presented for each of
BPA's programs. BPA carefully reviewed and considered the 26 written
comments and numerous oral comments on FY 2012 and 2013 program levels
that were provided during this public process.
On October 27, 2010, BPA issued the Final Close-Out Letter and
accompanying final report for the IPR, which summarizes the comments
received and outlines BPA's responses. The report also summarizes
comments and BPA's responses on the regional conversations about risk
mitigation and debt management. In the Final Close-Out Letter and
report, BPA established the program level cost estimates for both power
and transmission rates that are used in the Initial Proposal. BPA does
not anticipate additional public review of proposed spending levels.
However, an abbreviated IPR process may be held if conditions warrant.
BPA would conduct this process separately from the rate proceeding to
share updates and solicit feedback from customers and constituents
before the final program levels are incorporated into the final rates.
C. Rate Case Workshops
In preparation for the BP-12 rate proceeding, BPA held several
public rate case workshops with customers and interested parties from
March through September 2010. During the workshops, BPA staff presented
and discussed information about costs, load and resource forecasting,
generation inputs pricing, segmentation, revenue forecasts, load
forecasts, risk analysis and mitigation, products, pricing, and rate
design. Customers and interested parties had extensive opportunity to
participate, raise issues, present alternative proposals, and comment
on the information BPA staff presented. The comments and alternatives
received during these workshops have assisted in the preparation of the
Initial Proposal.
D. Scope of the Rate Proceeding
This section provides guidance to the Hearing Officer as to those
matters that are within the scope of the rate proceeding and those that
are outside the scope.
1. Program Cost Estimates
Some of the decisions that determine program costs and spending
levels have been made in the IPR public review process outside the rate
proceeding. See section II.B. BPA's spending levels for investments and
expenses are not determined or subject to review in rate proceedings.
Pursuant to section 1010.3(f) of BPA's Procedures, the
Administrator directs the Hearing Officer to exclude from the record
all argument, testimony, or other evidence that challenges the
appropriateness or reasonableness of the Administrator's decisions on
cost and spending levels. If, and to the extent that, any re-
examination of spending levels is necessary, such re-examination will
occur outside of the rate proceeding. This exclusion does not extend to
portions of the revenue requirements related to interest rate
forecasts, interest expense and credit, Treasury repayment schedules,
forecasts of depreciation, forecasts of system replacements used in
repayment studies, generation acquisition expense incurred by
Transmission Services, minimum required net revenue, and the costs of
risk mitigation actions resulting from the expense and revenue
uncertainties included in the risk analysis. The Administrator also
directs the Hearing Officer to exclude argument and evidence regarding
BPA's debt management practices and policies. See section II.D.2.
2. Federal and Non-Federal Debt Service and Debt Management
During the 2010 IPR and in other forums, BPA provided the public
with background information on BPA's internal Federal and non-Federal
debt management policies and practices. While these policies and
practices are not decided in the IPR forum, these discussions were
intended to inform interested parties about these matters so that they
would better understand BPA's debt structure. Notwithstanding the
public discussions, BPA's debt management policies and practices remain
outside the scope of the rate proceeding.
Pursuant to Sec. 1010.3(f) of BPA's Procedures, the Administrator
hereby directs the Hearing Officer to exclude from the record all
argument, testimony, or other evidence that seeks in any way to address
the appropriateness or reasonableness of BPA's debt management policies
and practices.
3. Potential Environmental Impacts
Environmental impacts are addressed in a concurrent National
Environmental Policy Act (NEPA) process. See section II.E.
Pursuant to Sec. 1010.3(f) of BPA's Procedures, the Administrator
directs the Hearing Officer to exclude from the record all argument,
testimony, or other evidence that seeks in any way to address the
potential environmental impacts of the rates being developed in this
rate proceeding.
E. The National Environmental Policy Act
BPA is in the process of assessing the potential environmental
effects of its proposed power and transmission rates, consistent with
the NEPA. The NEPA process is conducted separately from the rate
proceeding. As discussed in section II.D.3., all evidence and argument
addressing potential environmental impacts of rates being developed in
the BP-12 rate proceeding are excluded from the rate proceeding hearing
record. Rather, comments on environmental effects should be directed to
the NEPA process.
Because this proposal involves BPA's ongoing business practices
related to rates, BPA is reviewing the proposal for consistency with
BPA's Business Plan Environmental Impact Statement (Business Plan EIS),
completed in June 1995 (BOE/EIS-0183). This policy-level EIS evaluates
the environmental impacts of a range of business plan alternatives for
BPA that could be varied by applying various policy modules, including
one for rates. Any combination of alternative policy modules should
allow BPA to balance its costs and revenues. The Business Plan EIS also
includes response strategies, such as adjustments to rates, that BPA
could implement if BPA's costs exceed its revenues.
In August 1995, the BPA Administrator issued a ROD (Business Plan
ROD) that adopted the Market-Driven Alternative from the Business Plan
EIS. This alternative was selected because, among other reasons, it
allows BPA to: (1) Recover costs through rates;
[[Page 78693]]
(2) competitively market BPA's products and services; (3) develop rates
that meet customer needs for clarity and simplicity; (4) continue to
meet BPA's legal mandates; and (5) avoid adverse environmental impacts.
BPA also committed to apply as many response strategies as necessary
when BPA's costs and revenues do not balance.
In April 2007, BPA completed and issued a Supplement Analysis to
the Business Plan EIS. This Supplement Analysis found that the Business
Plan EIS's relationship-based and policy-level analysis of potential
environmental impacts from BPA's business practices remains valid, and
that BPA's current business practices remain consistent with BPA's
Market-Driven Alternative approach. The Business Plan EIS and ROD thus
continue to provide a sound basis for making determinations under NEPA
concerning BPA's policy-level decisions, including rates.
Because the proposed rates likely would assist BPA in accomplishing
the goals identified in the Business Plan ROD, the proposal appears
consistent with these aspects of the Market-Driven Alternative. In
addition, this rate proposal is similar to the type of rate designs
evaluated in the Business Plan EIS; thus, implementation of this rate
proposal would not be expected to result in environmental impacts
significantly different from those examined in the Business Plan EIS.
Therefore, BPA expects that this rate proposal likely will fall within
the scope of the Market-Driven Alternative that was evaluated in the
Business Plan EIS and adopted in the Business Plan ROD.
As part of the Administrator's ROD that will be prepared for the
BP-12 rate proceeding, BPA may tier its decision under NEPA to the
Business Plan ROD. However, depending upon the ongoing environmental
review, BPA may instead issue another appropriate NEPA document.
Comments regarding the potential environmental effects of the proposal
may be submitted to Katherine Pierce, NEPA Compliance Officer, KEC-4,
Bonneville Power Administration, 905 NE 11th Avenue, Portland, OR
97232. Any such comments received by the comment deadline for
Participant Comments identified in section III.A. below will be
considered by BPA's NEPA compliance staff in the NEPA process that will
be conducted for this proposal.
Part III--Public Participation in BP-12
A. Distinguishing Between ``Participants'' and ``Parties''
BPA distinguishes between ``participants in'' and ``parties to''
the hearings. Apart from the formal hearing process, BPA will receive
written comments, views, opinions, and information from
``participants,'' who may submit comments without being subject to the
duties of, or having the privileges of, parties. Participants' written
comments will be made part of the official record and considered by the
Administrator. Participants are not entitled to participate in the
prehearing conference; may not cross-examine parties' witnesses, seek
discovery, or serve or be served with documents; and are not subject to
the same procedural requirements as parties. BPA customers whose rates
are subject to this proceeding, or their affiliated customer groups,
may not submit participant comments. Members or employees of
organizations that have intervened in the rate proceeding may submit
general comments as participants but may not use the comment procedures
to address specific issues raised by their intervenor organizations.
Written comments by participants will be included in the record if
they are received by March 8, 2011. Written views, supporting
information, questions, and arguments should be submitted to the
address listed in the ADDRESSES section of this Notice.
Entities or people become parties to the proceeding by filing
petitions to intervene, which must state the name and address of the
entity or person requesting party status and the entity's or person's
interest in the hearing. BPA customers and affiliated customer groups
will be granted intervention based on petitions filed in conformance
with BPA's Procedures. Other petitioners must explain their interests
in sufficient detail to permit the Hearing Officer to determine whether
the petitioners have a relevant interest in the hearing. Pursuant to
Rule 1010.1(d) of BPA's Procedures, BPA waives the requirement in Rule
1010.4(d) that an opposition to an intervention petition be filed and
served 24 hours before the prehearing conference. The time limit for
opposing a timely intervention will be established at the prehearing
conference. Any party, including BPA, may oppose a petition for
intervention. All petitions will be ruled on by the Hearing Officer.
Late interventions are strongly disfavored. Opposition to an untimely
petition to intervene must be filed and received by BPA within two days
after service of the petition.
B. Developing the Record
The hearing record will include, among other things, the
transcripts of the hearing, written evidence and argument entered into
the record by BPA and the parties, written comments from participants,
and other material accepted into the record by the Hearing Officer. The
Hearing Officer will then review the record and certify the record to
the Administrator for final decision.
The Administrator will develop final rates based on the record and
such other materials and information as may have been submitted to or
developed by the Administrator. The Administrator will serve copies of
the Final ROD on all parties. BPA will file its rates with the
Commission for confirmation and approval after issuance of the Final
ROD.
Part IV--Summary of Rate Proposal
A. Partial Settlement of Transmission Rates
Transmission Services and most of its customers are parties to a
Partial Settlement Agreement that provides for Transmission Services to
submit a Settlement Proposal that incorporates the provisions of the
agreement. Under the Partial Settlement Agreement, Transmission
Services will propose maintaining current FY 2010-2011 rates, with no
rate increase for the FY 2012-2013 period, for all transmission
services and for two ancillary services: Scheduling, System Control and
Dispatch Service and Reactive Supply and Voltage Control from
Generation Sources Service. The remaining ancillary services and all
control area services are not covered by the partial settlement.
The Partial Settlement Agreement also includes changes to the
Failure to Comply Penalty Charge, the Network Integration Rate, and the
Integration of Resources Rate, as well as changes to several
definitions in the General Rate Schedule Provisions. In addition, the
agreement restricts the arguments parties to the settlement may make
regarding the reliance of Power Services on reserves attributable to
Transmission Services and commits BPA to various public processes
regarding rates and other issues.
Under the Partial Settlement Agreement the Administrator will
establish the Montana Intertie (IM) and Eastern Intertie (IE) rates,
and consider revisions to the Townsend-Garrison Transmission rate, in a
contested process in this rate case. However, under the agreement, BPA
staff will propose that the IM and IE rates be no higher than the
existing rates, and the
[[Page 78694]]
signatories to the settlement agreement agree not to present evidence
or argument that either rate should be higher than the existing rates.
The Partial Settlement Agreement recognizes the possibility that
parties to the BP-12 rate proceeding that have not signed the Partial
Settlement Agreement may object to the Settlement Proposal. If any
party objects to the Settlement Proposal, BPA has the right to submit a
revised proposal. If BPA submits a revised proposal, signatories to the
Partial Settlement Agreement may contest any aspect of the revised
proposal. If BPA does not revise the Settlement Proposal, and the
Administrator establishes transmission rates consistent with the
Settlement Proposal, the signatories may not challenge approval of the
rates by the Commission or in any judicial forum.
B. Transmission Rates
BPA is proposing four different rates for the use of its Integrated
Network segment, four different rates for use of intertie segments, and
several other rates for various purposes.
The four rates for use of the Integrated Network segment are:
Formula Power Transmission (FPT-12) rate--The FPT rate is based on
the cost of using specific types of facilities, including a distance
component for the use of transmission lines, and is charged on a
contract demand basis.
Integration of Resources (IR-12) rate--The IR rate is a postage
stamp, contract demand rate for the use of the Integrated Network,
similar to Point-to-Point (PTP) service.
Network Integration Transmission (NT-12) rate--The NT rate applies
to customers taking network integration service under the Open Access
Transmission Tariff (OATT) and allows customers to flexibly serve their
retail load.
Point-to-Point (PTP-12) rate--The PTP rate is a contract demand
rate that applies to customers taking point-to-point service on BPA's
network facilities under the OATT. It provides customers with flexible
service from identified Points of Receipt to identified Points of
Delivery. There are separate PTP rates for: Long-term firm service;
daily firm and non-firm service; and hourly firm and non-firm service.
In addition to the four rates for network use, other proposed
transmission rates include the following:
The Southern Intertie (IS-12) and the Montana Intertie (IM-12)
rates are contract demand rates that apply to customers taking point-
to-point service under the OATT on the Southern Intertie and Montana
Intertie. These rates are structured similarly to the rate for point-
to-point service on network facilities.
The Townsend-Garrison Transmission (TGT-12) and the Eastern
Intertie (IE-12) rates are developed pursuant to the Montana Intertie
agreement.
The Use-of-Facilities (UFT-12) rate establishes a formula for
charging for the use of a specific facility based on the annual cost of
that facility.
The Advance Funding (AF-12) rate allows Transmission Services to
collect the capital and related costs of specific facilities through an
advance-funding mechanism.
Other charges that may apply include: A Delivery Charge for the use
of low-voltage delivery substations; a Power Factor Penalty Charge; a
Reservation Fee for customers that postpone their service commencement
dates; incremental rates for transmission requests that require new
facilities; a penalty charge for failure to comply with dispatch,
curtailment, redispatch, or load shedding orders; and an Unauthorized
Increase Charge for customers that exceed their contracted amounts.
C. Ancillary Services Rates
In this Federal Register notice BPA is proposing rates for two
ancillary services: Scheduling, System Control, and Dispatch Service,
and Reactive Supply and Voltage Control from Generation Sources
Service.
3. Changes to Transmission Rates and Rate Schedules
a. Network Integration Transmission (NT-12) rate
The NT rate applies to customers taking network integration service
under the OATT and allows customers to flexibly serve their retail
load. Transmission Services is proposing to delete CSL and add a Short
Distance Discount (SDD) to the NT rate, applied to the NT Base Charge.
The SDD would apply when a Customer has a resource that: (i) Is
designated as a Network Resource in the customer's NT Service Agreement
for at least 12 months; and (ii) uses FCRTS facilities for less than 75
circuit miles for delivery to the Customer's Network Load. A designated
network resource that is a system sale (the designated resource is not
associated with a specific generating resource) would not qualify for
the SDD. Additionally, any designated resource that is eligible for the
SDD must be noted as such in the NT Service Agreement to receive the
billing credit.
b. Failure To Comply Penalty Charge
BPA proposes to change the rate for the Failure to Comply Penalty
Charge from 1000 mills per kilowatthour to the greater of 500 mills per
kilowatthour or 150% of an hourly energy index in the Pacific
Northwest.
c. Integration of Resources (IR-12)--Ratchet Demand Relief
BPA proposes to add language to the section on Ratchet Demand
Relief providing that relief from the Ratchet Demand is not available
in the month in which the Ratchet Demand was established. For that
month, the customer will be assessed charges based upon the highest
hourly Scheduled Demand Billing Factor.
d. Changes to Definitions
BPA proposes to modify the definitions of Dynamic Schedule, Dynamic
Transfer, Daily Service, Monthly Service, and Weekly Service.
Part V--Proposed 2012 Rate Schedules
BPA's proposed 2012 Transmission Rate Schedules are a part of this
notice and are available for viewing and downloading on BPA's Web site
at https://www.bpa.gov/corporate/ratecase/2012/. Copies of the proposed
rate schedules also are available for viewing in BPA's Public Reference
Room at the BPA Headquarters, 1st Floor, 905 NE 11th Avenue, Portland,
OR 97232.
Issued this 7th day of December, 2010.
Stephen J. Wright,
Administrator and Chief Executive Officer.
[FR Doc. 2010-31621 Filed 12-15-10; 8:45 am]
BILLING CODE P