The Central Valley Project, the California-Oregon Transmission Project, the Pacific Alternating Current Intertie, and Path 15 Transmission-Rate Order No. WAPA-156, 127-142 [2010-33108]
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[FR Doc. 2010–33066 Filed 12–30–10; 8:45 am]
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SUMMARY:
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DEPARTMENT OF ENERGY
Western Area Power Administration
The Central Valley Project, the
California-Oregon Transmission
Project, the Pacific Alternating Current
Intertie, and Path 15 Transmission—
Rate Order No. WAPA–156
AGENCY: Western Area Power
Administration, DOE.
ACTION: Notice of Proposed Power,
Transmission, and Ancillary Services
Rates.
SUMMARY: The Western Area Power
Administration (Western) is proposing
new and revised formula rates and
information for the following: Western
power, the Central Valley Project (CVP)
transmission, the California-Oregon
Transmission Project (COTP)
transmission, the Pacific Alternating
Current Intertie (PACI) transmission,
ancillary services, custom product
power, and information on Path 15
transmission upgrade. In addition to
these existing rates for services, Western
also is proposing to implement two new
rates and services: Unreserved Use
Penalties and Generator Imbalance
Services (GI).
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Western is not proposing any changes
to its existing formula rate
methodologies. The proposed rates will
provide sufficient revenue to pay all
annual costs including interest expense,
investments, and aid to irrigation within
the allowable time periods. Western’s
rate brochure providing detailed
information on the proposed formula
rates will be available January 11, 2011,
to all interested parties upon request.
The current rates for existing services
expire on September 30, 2011.1 If
approved, the proposed rates would
become effective on October 1, 2011,
and remain in effect through September
30, 2016, or until superseded by another
rate schedule. Publication of this
Federal Register notice begins the
formal process for the proposed rate
adjustments.
DATES: The consultation and comment
period will begin on the date of
publication of the Federal Register
notice and will end April 4, 2011.
Western will present a detailed
explanation of the proposed rates at a
public information forum. The public
information forum date is: January 25,
2011, 1 p.m. Pacific Standard Time,
Folsom, CA.
Western will accept written
comments anytime during the
consultation and comment period. In
addition, Western will accept oral and
written comments at a public comment
forum. The public comment forum date
is: March 1, 2011, 1 p.m. Pacific
Standard Time, Folsom, CA.
ADDRESSES: Send written comments to
Mr. Thomas R. Boyko, Regional
Manager, or Mr. Charles J. Faust, Rates
Manager, Sierra Nevada Customer
Service Region, Western Area Power
Administration, 114 Parkshore Drive,
Folsom, CA 95630–4710, or e-mail
comments to SNR–
FY12RateCase@wapa.gov.
Western will accept written
comments anytime during the
consultation and comment period.
Western will post comments it receives
on Western’s Web site at https://
www.wapa.gov/sn/marketing/rates/
ratesprocess/formalProcess/index.asp.
Western must receive written comments
by the end of the consultation and
comment period to ensure
consideration.
Western will host both the public
information and public comment
forums at: Lake Natoma Inn, 702 Gold
Lake Drive, Folsom, CA 95630–2559,
telephone number (916) 351–1500.
FOR FURTHER INFORMATION CONTACT: Mr.
Charles J. Faust, Rates Manager, Sierra
1 See Rate Order No. WAPA–139, 73 FR 48381
(August 19, 2008).
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Nevada Customer Service Region,
Western Area Power Administration,
114 Parkshore Drive, Folsom, CA
95630–4710, telephone (916) 353–4468,
or e-mail SNR–
FY12RateCase@wapa.gov.
SUPPLEMENTARY INFORMATION: This
Federal Register notice initiates the
formal public process to replace the
Federal Energy Regulatory
Commission’s (FERC) approved rate
schedules effective beginning January 1,
2005, ending September 30, 2011.
The following discussion provides an
overview of the proposed formula rates
and components, including a rate
comparison, rate recovery, and
applicability. Western held 14 public
Informal Rate meetings beginning June
2008 through April 2010. Based on
stakeholders’ comments and Western’s
analysis, Western is not proposing any
changes to existing rate methodologies.
Western proposes adding new rate
schedules for unreserved use penalties
and generator imbalance services.
Western will continue to operate as a
Sub-Balancing Authority (SBA) under
contract with the Sacramento Municipal
Utility District, who operates the Host
Balancing Authority (HBA).
Prior to the start of each fiscal year
(FY), Western will calculate and publish
an annual Power Revenue Requirement
(PRR) to determine the total cost of
power to be allocated to preference
customers. For example, by October 1,
2011, Western will publish the PRR for
FY 2012, which begins October 1, 2011,
and ends September 30, 2012. As part
of the rate development, Western
prepares a Power Repayment Study
(PRS) each FY to determine if revenue
will be sufficient to repay, within the
required time periods, all costs assigned
to the commercial power function.
Repayment criteria are based on
legislation and applicable policies,
including DOE Order RA 6120.2.
Generally, the PRR includes operation
and maintenance (O&M) expenses,
purchased power for Project Use and
First Preference (FP) customers’ loads,
interest and other expenses (including
any other statutorily-required costs or
charges), investment repayment, and the
Washoe Project annual PRR that
remains after project use loads are met.
Revenues from project use,
transmission, ancillary services, and
other services are offset against
expenses in the PRR; and the remainder
is collected from Base Resource (BR)
and FP customers. The PRR is reviewed
during March of each year; and if such
review results in a change of $5 million
or more, the PRR is adjusted for the
remaining 6-month period. The PRR is
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an estimate of revenues and costs
including investment and repayment
projections from the PRS. Any deviation
from estimate to actual will increase or
decrease annual project repayment.
Project repayment is measured over the
long term to ensure repayment is met
and to maintain rate stability.
The PRR is allocated to Western’s
preference customers, namely, FP
customers based on their FP
percentages, and the remaining amount
to BR customers based on their BR
allocation, adjusted for programs, such
as, hourly exchange. The Trinity River
Division Act of 1955 (69 Stat. 719) and
the Flood Control Act of 1962 (76 Stat.
1173, 1191–1192) accorded first
preference to CVP power to customers
in Trinity, Tuolumne, and Calaveras
Counties. A BR customer, under the
2004 Marketing Plan, is an entity that
has executed a BR contract and is
allocated a percentage of the BR.
In order for Western to meet the load
requirements, beyond delivered BR, for
Full Load Service (FLS) customers and
Variable Resource (VR) customers,
Western may make supplemental power
(SP) purchases, pursuant to the Custom
Product Power (CPP) rate schedule. FLS
and VR customers who contract with
Western for such service will pay all SP
costs. FLS customers pay a portfolio
management charge pursuant to their
contract, whereas VR customers pay a
scheduling charge pursuant to the
proposed rate schedule.
At least annually, Western will
publish the CVP transmission rates for
point-to-point and network integration
transmission service, the seasonal COTP
and PACI transmission rates, and CVP
regulation and frequency response
service rates. Western prepares a
detailed cost-of-service study to
determine the costs, by project, that
support the transfer capability of each
transmission system and the costs that
support the generation capability of the
CVP system. Generally, the costs
allocated through the cost-of-service
study for the transmission systems
include O&M, interest, and depreciation
expenses. Western’s costs for
scheduling, system control and dispatch
service associated with CVP, COTP, and
PACI transmission service are included
and recovered through the respective
transmission system’s RR. Third-party
transmission service costs are passed
through directly to each requesting
customer.
Spinning and supplemental reserves
are charged the price consistent with the
California Independent System
Operator’s (CAISO) market price plus all
costs incurred for the sale of these
reserves. Customers who have a
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contractual obligation to provide
spinning and supplemental reserves and
do not fulfill their obligation will be
assessed a penalty equal to the greater
of Western’s actual cost or 150 percent
of the market price. Similarly, for
Energy Imbalance (EI) service,
customers outside of their contractual
bandwidth (under delivery) will pay the
greater of 150 percent of the market
price or Western’s actual cost. Given
Western’s EI customers are and will
continue to operate under existing
agreements, Western will continue its
existing rate methodology for EI. During
the applicable rate period, Western will
review FERC Order No. 890 pro forma
approach, as well as Western’s existing
settlements and billing processes and
will reconsider a transition to FERC’s
pro forma tariff methodology during
Western’s next rate process or earlier if
deemed appropriate.
Finally, based on the requirements
under FERC’s Order No. 890, Western
proposes adding two new rate schedules
to be effective during the new rate
period: Unreserved Use Penalties and
GI. Western proposes the Unreserved
Use Penalties be assessed at 150 percent
of the effective point-to-point
transmission rate when transmission
service is used and not reserved or
when used in excess of reservation.
Western proposes the GI rate use the
same tiered methodology as Western’s
existing and proposed EI service rate
and any subsequent changes. Note,
currently Western has no customers
subject to this proposed GI rate.
Information on Path 15 Transmission
Upgrade
The Path 15 Transmission Upgrade
was completed in 2005. Western has
turned over the operational control of
Western’s Path 15 Upgrade to the
CAISO. Western maintains the lines and
is compensated by Atlantic Path 15, LLC
for the Operation and Maintenance
work costs. The CAISO charges for use
on the Path 15 Upgrade as part of its
rates. Western does not charge a
separate rate for Path 15. Western
collects revenues from the CAISO under
its agreements with the CAISO. Under
Amendment No. 48, the CAISO remits
to Western, wheeling, congestion, and
Congestion Revenue Rights revenues
associated with Western’s rights on the
Path 15 transmission.2
Proposed Rate Schedules and
Discussion
Proposed Rate Schedule Cv–F13
(Supersedes CV–F12)
Schedule of Rates for Base Resource and
First Preference Power
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by the Sierra Nevada Customer
Service Region (SNR).
Applicable: To the BR and FP power
customers.
Character and Conditions of Service:
Alternating current, 60 hertz, threephase, delivered and metered at the
voltages and points established by
contract. This service includes the CVP
transmission (to include reactive supply
and voltage control from Federal
generation sources needed to support
the transmission service), spinning
reserve service, and supplemental
reserve service.
Power Revenue Requirement: Western
will develop the PRR prior to the start
of each FY. The PRR will be divided
into two 6-month periods, October
through March and April through
September. A monthly PRR will be
calculated by dividing each 6-month
PRR by six. The PRR for the Aprilthrough-September period will be
reviewed in March of each year. The
review will analyze financial data from
the October-through-February period, to
the extent information is available, as
well as forecasted data for the Marchthrough-September period. If there is a
change of $5 million or more, the PRR
for the April-through-September period
will be recalculated. The PRR is
allocated to FP and BR customers based
on the formula rates.
EXAMPLE OF POWER REVENUE REQUIREMENT ALLOCATION TO FIRST PREFERENCE AND BASE RESOURCE
Component
Formula
Allocation
Annual PRR ................................................................................
FP Customer Allocation (Total FP % = 5%) ...............................
Remaining PRR Allocated to BR ................................................
....................................................................................................
$70,000,000 × 5% ......................................................................
$70,000,000¥$3,500,000 ..........................................................
$70,000,000
3,500,000
66,500,000
Note: This example is intended to show the PRR allocation to the customer groups and is not adjusted for billing or midyear adjustments.
equal to the annual PRR multiplied by
the relevant FP percentage.
Where:
FP Customer Load = An FP customer’s
forecasted annual load in megawatthours
(MWh).
Gen = The forecasted annual CVP and
Washoe generation (MWh).
Power Purchases = Power purchases for
project use and FP loads (MWh).
Project Use = The forecasted annual project
use loads (MWh).
MRR = Monthly Power Revenue
Western will develop the FP customer
percentage prior to the start of each FY.
During March of each FY, each FP
customer’s percentage will be reviewed.
If, as a result of the review, there is a
change in the FP customer’s percentage
of more than one-half of one percent,
the percentage will be revised for the
April-through-September period.
2 Amendment No. 48 amended CAISO’s tariff to
provide congestion revenues, wheeling revenues,
and firm transmission rights auction revenues to
entities other than CAISO’s Participating
Transmission Owners, if any such entities fund
transmission facility upgrades on the CAISO grid.
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Requirement.
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Component 1:
The percentages in the table below are
the maximum percentages for each FP
customer that will be effective to the
MRR during the rate period October 1,
2011, through September 30, 2016. The
maximum percentages were determined
based on a critically dry year where
there are hydrologic conditions that
result in low CVP generation and,
consequently, low levels of BR. An FP
See Federal Energy Regulatory Commission Docket
No. ER03–407–000.
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First Preference Power Formula Rate:
The annual FP customer allocation is
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percentage cannot exceed the maximum
except in instances where individual FP
customer percentages increase due to
load growth. If these maximum
percentages are used for determining the
FP customer’s charges for more than 1
year, Western will evaluate their
percentage from the formula rate versus
the maximum percentage and make
adjustments as appropriate.
FIRST PREFERENCE’S ACTUAL MAXIMUM PERCENTAGES EFFECTIVE RATE PERIOD
Maximum FP customer’s percentage applied to the MRR
(%)
FP customers
Sierra Conservation Center .......................................................................................................................................
Calaveras Public Power Agency ...............................................................................................................................
Trinity Public Utilities District .....................................................................................................................................
Tuolumne Public Power Agency ...............................................................................................................................
1.58
3.81
11.99
3.16
Total ....................................................................................................................................................................
20.54
Below is a sample calculation for an FP
customer monthly charge for power.
EXAMPLE—FIRST PREFERENCE
MONTHLY CUSTOMER CHARGE CALCULATION
Numerator:
FP Customer Load—MWh
Denominator:
Washoe Generation—
MWh ..............................
CVP Generation—MWh ....
Project Use Load—MWh ..
Project Use Purchase—
MWh ..............................
Calculated Percentage:
FP Customer Percentage
Monthly Power Revenue Requirement (MRR) ..............
FP Customer Monthly
Charge = (FP % × MRR) ..
10,000
2,500
3,700,000
(1,200,000)
47,000
0.39%
$3,333,333
$13,000
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
BR Formula Rate: The annual BR
allocation is equal to the annual PRR
less the annual FP customer allocation.
Component 1:
BR Customer Allocation =
(BR RR × BR %)
Where:
BR RR = BR Monthly Revenue Requirement
(RR)
BR % = BR percentage for each customer as
indicated in the BR contract after
adjustments for programs, such as hourly
exchange, if applicable.
After the FP customers’ share of the
annual PRR has been determined, the
remainder of the annual PRR is
recovered from the BR customers. The
BR RR will be collected in two 6-month
periods. For October through March, 25
percent of the BR RR will be collected.
For April through September, 75
percent of the BR RR will be collected.
A BR RR is calculated by dividing the
BR 6-month RR by six. The revenues
from the sale of surplus BR will be
applied to the annual BR RR for the
following FY.
An example of a reallocation program
is the Hourly Exchange (HE) Program.
BR customers pay for exchange energy,
hourly or seasonally, by adjusting the
BR percentage that is applied to the BR
RR. Adjustments to a customer’s BR
percentage for seasonal exchanges will
be reflected in the customer’s BR
contract.
An illustration of the adjustment to a
customer’s BR percentage for HE energy
is shown in the example below.
EXAMPLE OF BASE RESOURCE PERCENTAGE ADJUSTMENTS FOR HOURLY EXCHANGE ENERGY
BR % from
contract
BR customer
Hourly BR =
30 MWh
Customer’s
BR > load
Customers
receiving HE
BR delivered
(adj’d for HE)
Revised BR %
20
10
70
6
3
21
3
0
0
0
1
2
3
4
23
10.0
13.3
76.7
Total ..................................................
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Customer A ..............................................
Customer B ..............................................
Customer C ..............................................
100
30
3
3
30
100.0
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
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each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
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customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
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through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: Billing for BR and FP power
will occur monthly using the respective
formula rate.
Adjustment for Losses: Losses will be
accounted for under this rate schedule
as stated in the service agreement.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the RR under this rate schedule will
be evaluated on a case-by-case basis to
determine the appropriate treatment for
repayment and cash flow management.
Rate Comparison
Comparison of the existing to the
proposed RR results in a change in costs
and not a rate methodology change. The
0.86 percent PRR increase is due to an
inflationary change to O&M, as well as
increased interest expense. Those costs
are offset by increased transmission
revenue due to the anticipated
completion of assets supporting the
transmission function. The table below
compares the existing RRs (FY 2011) to
the estimated RRs (FY 2012) under the
proposed formula rates.
COMPARISON OF EXISTING TO PROPOSED POWER REVENUE REQUIREMENT, AND ALLOCATION TO FIRST PREFERENCE AND
BASE RESOURCE CUSTOMERS
Service
Existing RRs
PRR .....................................................................................................................................
FP RR ..................................................................................................................................
BR RR ..................................................................................................................................
Estimated RRs for
the proposed formula rate
(effective FY
2012)
$75,751,929
3,636,093
72,115,836
Percent
change
(%)
$76,401,847
3,644,368
72,757,479
0.86
0.02
0.89
The table below compares the FP
percentages as well as their maximum
percentages for the two periods.
FIRST PREFERENCE PERCENTAGE COMPARISON, AND ACTUAL MAXIMUM PERCENTAGES EFFECTIVE RATE PERIOD
FP percentages
FP Customers
Existing
(%)
Maximum FP customer’s percentage applied to the MRR
Estimated
(%)
Existing
(%)
Estimated
(%)
Sierra Conservation Center .............................................................................
Calaveras Public Power Agency .....................................................................
Trinity Public Utilities District ...........................................................................
Tuolumne Public Power Agency ......................................................................
0.37
0.90
2.80
0.73
0.37
0.90
2.80
0.70
1.39
3.49
9.21
3.42
1.58
3.81
11.99
3.16
Total ..........................................................................................................
4.80
4.76
17.51
20.54
The change in FP percentages is due
to changes in generation and FP
customer loads not a rate methodology
change. The increase in FP maximum
percentage is due to a collective
increase in FP customer loads not a rate
methodology change.
During the effective rate period, if
deemed appropriate, Western will
reevaluate the FP maximum percentage
based on new data.
jlentini on DSKJ8SOYB1PROD with NOTICES
Rate Recovery and Application
The formula rates for CVP FP power
and BR power are based on a PRR that
recovers: (1) O&M expense allocated to
power; (2) CVP network transmission;
(3) annual investment and replacement
repayment; (4) aid-to-irrigation costs; (5)
interest expense; (6) power purchases
for firming BR; (7) Washoe project
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20:10 Dec 30, 2010
Jkt 223001
annual costs after project use loads are
met; (8) other miscellaneous expenses
allocated to power, such as, settlements,
California-Oregon Intertie (COI) path
operator costs, etc.; (9) the pass through
of FERC’s or other regulatory body’s
accepted or approved charges or credits;
(10) the pass through of the HBA’s
charges or credits; (11) any other
statutorily-required costs or charges;
and (12) any other costs associated with
BR or FP power service including
uncollectible debt.
Expenses are offset by revenues from
project use energy, transmission
revenue, ancillary service revenue,
scheduling coordinator, portfolio
management and VR charge
administrative fees, all pass through
revenue, and any other miscellaneous
revenue.
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Sfmt 4703
The PRR will be allocated first to FP
customers based on their percentages,
subject to the maximum cap, then the
remaining amount to BR customers
based on their BR allocation
percentages, adjusted for programs, such
as, HE if applicable.
The BR RR will be collected in two,
6-month periods: 25 percent for October
through March and 75 percent for April
through September. However, the FP RR
is not subject to the 25/75 percent split;
and it will be collected evenly over a 12month period.
The formula rates will be effective at
the beginning of each FY and reviewed
in March of each year. If the March midyear review reflects a change of $5
million or more, the annual PRR will be
revised. The FP percentages are also
reviewed at mid-year. If the mid-year
E:\FR\FM\03JAN1.SGM
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132
Federal Register / Vol. 76, No. 1 / Monday, January 3, 2011 / Notices
review reflects a change to a FP
customer’s percentage of more than one
half of one percent, that customer’s
percentage will be revised for the
remainder of the FY.
The formula rates apply to CVP BR
and FP power customers. The estimated
rates are subject to change prior to the
rates taking effect. The rates will be
finalized by Western on or before
October 1, 2011.
Proposed Formula Rate for Custom
Product Power and Effective Rate for
Variable Resource Schedules
Rate Schedule CPP–2 (Supersedes CPP–
1)
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To customers that
contract with Western for CPP.
To VR customers requesting
scheduling for this service. VR
customers will pay a scheduling charge
to recover Western’s cost for scheduling
VR CPP service.
Character and Conditions of Service:
Alternating current, 60 hertz, threephase, delivered and metered at the
voltages and points established by
contract.
Formula Rate: The formula rate for
CPP includes three components:
Component 1: The customer will pay
all costs incurred in the provision of
CPP. These costs will be passed through
to the customer. The methodology used
to calculate the amount of the pass
through will be based on the type of
funding used to purchase the CPP. The
CPP includes, but is not limited to, SP
and BR firming power. If in the event
customer advance funding is used to
purchase CPP, then allocation of surplus
CPP sales will be determined based on
customer’s account status.
If the CPP is funded through
appropriations, Federal reimbursable, or
use of receipts authority, the cost of the
CPP is passed through to the
customer(s) for whom Western has
made the purchase. The CPP funded
through appropriations, Federal
reimbursable, or use of receipts
authority that is surplus to the load
requirements of the customer(s) will be
sold. Proceeds from the sale of surplus
CPP funded through use of receipts,
Federal reimbursable, or appropriations
authority will be applied to the CPP
purchase cost for the customer(s) to the
extent possible. If the cost of the CPP is
fully recovered and proceeds remain
from the sale of surplus CPP, the
remaining proceeds will be used to
reduce the PRR.
The table below illustrates the pass
through of the CPP costs to each
customer and the treatment of proceeds
from the sale of surplus CPP funded
through appropriations, Federal
reimbursable, or use of receipts
authority. As shown below, Customers
A, B, and C are responsible for paying
the full costs of the CPP purchase made
by Western (total CPP RR is $780). The
CPP RR of $780 is reduced by the sale
of 1 MWh at $45, which reduces the
CPP RR to $735. Therefore, the reduced
CPP RR of $735 is prorated to each
customer based on the amount of CPP
purchased on their behalf.
EXAMPLE CUSTOM PRODUCT POWER COST RECOVERY WITH PROCEEDS FROM SALES OF SURPLUS CUSTOM PRODUCT
POWER USE OF RECEIPTS, FEDERAL REIMBURSABLE, OR APPROPRIATIONS AUTHORITY
[If Western made a CPP purchase of 13 MW for the hour @ $60/MWh = $780]
CPP purchased
(MWh)
CPP USED
(MWh)
CPP Costs
Customer A ..............................................
Customer B ..............................................
Customer C ..............................................
5
4
4
5
4
3
Total ..................................................
13
12
Surplus CPP
sold
Proceeds from
excess CPP
sales
CPP customer
charges
0
0
1
$780
$283
226
226
1
$45
735
Notes:
1. Western sold 1 MWh of CPP at $45/MWh = $45.
2. Proceeds from the sale of surplus CPP reduce the CPP Costs prorated based on the amount of CPP purchased.
Effective October 1, 2011, Western
will charge $38.22 per schedule per day
to cover its administrative costs for
procuring and scheduling CPP if the
customer has not contracted with
Western for this type of service through
other agreements. If the actual number
of schedules for the month is not
available, Western will estimate the
number of schedules for the month and
apply the $38.22 per schedule charge to
the estimated number of schedules.
The table below depicts the VR
customers charge per schedule for the
effective rate period.
VARIABLE RESOURCE CUSTOMERS EFFECTIVE RATE PER SCHEDULE
2012
2013
2014
2015
2016
VR Charge Per Schedule ....................................................
jlentini on DSKJ8SOYB1PROD with NOTICES
FY
$38.22
$39.36
$40.54
$41.76
$43.01
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
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20:10 Dec 30, 2010
Jkt 223001
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
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Fmt 4703
Sfmt 4703
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
E:\FR\FM\03JAN1.SGM
03JAN1
Federal Register / Vol. 76, No. 1 / Monday, January 3, 2011 / Notices
Rate Comparison
Effective October 1, 2011, the CPP
cost recovery is not changing from the
existing methodology and remains 100
percent pass through under this rate
schedule.
Under the proposed formula rate,
Component 1, the VR customer’s
scheduling charge is adjusted to $38.22
per schedule. This is a 23-percent
increase from the January 1, 2005, VR
customer’s charge of $31.07 per
schedule. This increase is based on a
percentage change in O&M from the
2005 rate case through FY 2010. The FY
2013 VR customer’s charge increases 3
percent each year through FY 2016 to
reflect inflationary increases. The rate
increase is due to inflationary costs not
a rate methodology change.
Rate Recovery and Application
The CPP cost recovery methodology is
not changing and remains 100 percent
pass through under this rate schedule.
The formula rate for CPP applies to
power supplied by Western to meet a
customer’s load. The VR customer
charge is to recover Western’s cost for
scheduling VR customer’s CPP service.
Proposed Formula Rate for CVP
Transmission
jlentini on DSKJ8SOYB1PROD with NOTICES
Proposed Rate Schedule CV–T3
(Supersedes CV–T2)
Central Valley Project; Schedule of Rate
for Firm and Non-Firm Point-to-Point
Transmission Service
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To customers receiving
CVP firm and/or non-firm point-to-point
transmission service.
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20:10 Dec 30, 2010
Jkt 223001
Character and Conditions of Service
Transmission service for three-phase,
alternating current at 60 hertz, delivered
and metered at the voltages and points
of delivery or receipt, adjusted for
losses, and delivered to points of
delivery. This service includes
scheduling and system control and
dispatch service needed to support the
transmission service.
Formula Rate: The formula rate for
CVP firm and non-firm point-to-point
transmission includes three
components:
Component 1:
Where:
CVP TRR = Transmission Revenue
Requirement (TRR) is the cost associated
with facilities that support the transfer
capability of the CVP transmission
system excluding generation facilities
and radial lines.
TTc = The Total Transmission Capacity is the
total transmission capacity under longterm contract between Western and other
parties.
NITSc = The Network Integration
Transmission Service Capacity is the 12month average coincident peaks of
Network Integrated Transmission Service
(NITS) customers at the time of the
monthly CVP transmission system peak.
For rate design purposes, Western’s use
of the transmission system to meet its
statutory obligations is treated as NITS.
Western may revise the rate from
Component 1 based on either of the
following conditions: (1) Updated
financial data available in March of each
year; or (2) a change in the numerator
or denominator that results in a rate
change of at least $0.05 per kilowatt
month (kWmonth). Rate change
notifications will be posted on
Western’s Open Access Same-Time
Information System (OASIS).
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
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Frm 00053
Fmt 4703
Sfmt 4703
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: The formula rate above
applies to the maximum amount of
capacity reserved for periods ranging
from 1 hour to 1 month, payable
whether used or not. Billing will occur
monthly.
Adjustment for Losses: Losses
incurred for service under this rate
schedule will be accounted for as agreed
to by the parties in accordance with the
service agreements.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the RR under this rate schedule will
be evaluated on a case-by-case basis to
determine the appropriate treatment for
repayment and cash flow management.
Rate Comparison
Under the proposed formula rate,
Component 1, the estimated firm and
non-firm point-to-point rate effective
October 1, 2011, is $1.32 per kWmonth.
This is a 22-percent increase from the
October 1, 2010, CVP firm and non-firm
point-to-point rate of $1.08 per
kWmonth. The rate increase is due to
the anticipated completion of assets
supporting the transmission function
not a rate methodology change.
Rate Recovery and Application
The formula rate for CVP transmission
service is based on a RR that recovers:
(1) The CVP transmission system costs
for facilities associated with providing
transmission service; (2) the non-facility
costs allocated to transmission service;
(3) costs include O&M costs, cost of
capital or interest expense, depreciation
expense, and other miscellaneous costs;
(4) the cost for transmission scheduling,
system control and dispatch service is
included in O&M; (5) the pass through
of FERC’s or other regulatory body’s
accepted or approved charges or credits;
(6) the pass through of the HBA’s
charges or credits; (7) any other
statutorily-required costs or charges;
and (8) any other costs associated with
transmission service including
uncollectible debt. Revenues from the
sales of short-term, non-firm
transmission will offset the TRR.
E:\FR\FM\03JAN1.SGM
03JAN1
EN03JA11.025</GPH>
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: Billing for CPP and VR
customers’ scheduling charge occurs
monthly using the formula rate.
Adjustments for Losses: All losses
incurred for delivery of CPP under this
rate schedule shall be the responsibility
of the customer that has contracted for
this service.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the RR under this rate schedule will
be evaluated on a case-by-case basis to
determine the appropriate treatment for
repayment and cash flow management.
133
Federal Register / Vol. 76, No. 1 / Monday, January 3, 2011 / Notices
Revenue from unreserved use of
transmission penalties exceeding
transmission service cost will be
applied as an offset to the TRR.
The formula rate applies to CVP firm
point-to-point transmission service,
existing CVP firm pre-Open Access
Transmission Tariff (OATT)
transmission service, and CVP non-firm
transmission service. The estimated
rates resulting from the formula rate are
subject to change prior to the rates
taking effect. The rates will be finalized
by Western on or before October 1,
2011.
Proposed Rate Schedule CV–NWT5
(Supersedes Schedule CV–NWT4)
Proposed Formula Rate for CVP NITS
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To customers receiving
CVP NITS.
Character and Conditions of Service:
Transmission service for three-phase,
alternating current at 60 hertz, delivered
and metered at the voltages and points
of delivery or receipt, adjusted for
losses, and delivered to points of
delivery. This service includes
scheduling and system control and
dispatch service needed to support the
transmission service.
Formula Rate: The formula rate for
CVP NITS includes three components:
Component 1: The NITS RR is the
result of the CVP TRR less the CVP firm
point-to-point TRR. Each NITS
customer’s allocation is based on the
following formula:
NITS customer’s monthly demand
charge = NITS customer’s load ratio
share times one-twelfth (1⁄12) of the
Annual Network TRR.
jlentini on DSKJ8SOYB1PROD with NOTICES
Where:
NITS customer’s load ratio share = The NITS
customer’s usage, hourly or in
accordance with approved policies or
procedures, (including behind the meter
generation minus the NITS customer’s
adjusted BR) coincident with the
monthly CVP transmission system peak,
averaged over a 12-month rolling period.
Annual Network TRR = The total CVP TRR,
less revenues from long-term contracts
for the CVP transmission between
Western and other parties.
The Annual Network TRR will be
revised when the rate from Component
1 of the CVP transmission rate under
Rates Schedule CV–T3 is revised.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Rate Comparison
Effective October 1, 2011, the
estimated monthly NITS RR is
$2,237,158. This rate is a 23-percent
increase from the October 1, 2010,
monthly NITS RR of $1,824,170. The
rate increase is due to the anticipated
completion of assets supporting the CVP
transmission function not a rate
methodology change.
The formula rate applies to CVP NITS.
The estimated NITS monthly RR,
resulting from the formula rate, may
change prior to the rates taking effect
based on the final CVP TRR. The NITS
monthly RR will be finalized by
Western on or before October 1, 2011.
Rate Recovery and Application
The formula rate for CVP NITS is
based on a RR that recovers: (1) The
Where:
COTP TRR = COTP Seasonal TRR (Western’s
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PO 00000
costs associated with facilities that
support the transfer capability of the
Frm 00054
Fmt 4703
Sfmt 4703
CVP transmission system costs for
facilities associated with providing
transmission service; (2) the non-facility
costs allocated to transmission service;
(3) costs include O&M cost, cost of
capital or interest expense, depreciation
expense, and other miscellaneous costs;
(4) the cost for transmission scheduling,
system control and dispatch; (5) the
pass through of FERC’s or other
regulatory body’s accepted or approved
charges or credits; (6) the pass through
of the HBA’s charges or credits; (7) any
other statutorily-required costs or
charges; and (8) any other costs
associated with transmission service
including uncollectible debt. Revenues
from the sales of short-term, non-firm
transmission will offset the TRR.
Revenue exceeding cost from
unreserved use of transmission
penalties will also be applied as an
offset to the TRR.
The formula rate applies to CVP NITS
transmission service. The estimated
rates resulting from the formula rate are
subject to change prior to the rates
taking effect. The rates will be finalized
by Western on or before October 1,
2011.
Proposed Rate Schedule COTP–T3
(Supersedes Schedule COTP–T2)
Formula Rate for COTP Point-to-Point
Transmission Service
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To customers receiving
COTP firm and/or non-firm point-topoint transmission service.
Character and Conditions of Service:
Transmission service for three-phase,
alternating current at 60 hertz, delivered
and metered at the voltages and points
of delivery or receipt, adjusted for
losses, and delivered to points of
delivery. This service includes
scheduling and system control and
dispatch service needed to support the
transmission service.
Formula Rate: The formula rate for
COTP firm and non-firm point-to-point
transmission service includes three
components:
Component 1:
COTP).
Western’s COTP Seasonal Capacity =
E:\FR\FM\03JAN1.SGM
03JAN1
EN03JA11.026</GPH>
134
Federal Register / Vol. 76, No. 1 / Monday, January 3, 2011 / Notices
Western’s share of COTP capacity
(subject to curtailment) under the current
COI transfer capability for the season.
The three seasons are defined as follows:
Summer—June through October;
Winter—November through March; and
Spring—April through May.
Western will update the formula rate
from Component 1 for COTP firm and
non-firm point-to-point transmission
service at least 15 days before the start
of each COI rating season. Rate change
notifications will be posted on the
OASIS Web site.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
135
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Rate Comparison
A comparison of the estimated rates
resulting from Component 1 of the
proposed formula rate for COTP firm
point-to-point transmission service to
the existing COTP firm point-to-point
transmission service rates are shown in
the table below.
TABLE—COMPARISON OF EXISTING RATES TO ESTIMATED RATES FROM THE PROPOSED FORMULA RATE FOR COTP FIRM
AND NON-FIRM POINT-TO-POINT TRANSMISSION SERVICE
Season
Existing rates
Estimated rates
from proposed
formula rate
Spring ...............................................................................................................................
Summer ...........................................................................................................................
Winter ...............................................................................................................................
$2.74 $/MWh ....
$2.73 $/MWh ....
$2.77 $/MWh ....
$2.80 $/MWh ....
$2.79 $/MWh ....
$2.83 $/MWh ....
Rate Recovery and Application
jlentini on DSKJ8SOYB1PROD with NOTICES
The proposed formula rate for COTP
firm and non-firm point-to-point
transmission service is based on a RR
that recovers: (1) The COTP
transmission system costs for facilities
associated with providing transmission
service; (2) the non-facility costs
allocated to transmission service; (3) the
cost of scheduling system control and
dispatch service associated with COTP
transmission; (4) the pass through of
FERC’s or other regulatory body’s
accepted or approved charges or credits;
(5) the pass through of the HBA’s
charges or credits; (6) any other
statutorily-required costs or charges;
and (7) any other costs associated with
transmission service including
uncollectible debt.
Where:
PACI TRR = PACI Seasonal TRR includes
Western’s costs associated with facilities
that support the transfer capability of the
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Jkt 223001
The proposed firm and non-firm
formula rate includes Western’s cost for
transmission scheduling, and system
control and dispatch service associated
with COTP transmission. The proposed
formula rate applies to COTP point-topoint transmission service. The rates
resulting from Component 1 of the
proposed formula rate may be
discounted for short-term sales and
revenue from COTP unreserved use
penalties.
The estimated rates resulting from the
proposed formula rate are subject to
change prior to the rates taking effect.
The rates resulting from the proposed
formula rate for the winter season will
be finalized by Western on or before
October 15, 2011.
Proposed Rate Schedule PACI–T3
(Supersedes Schedule PACI–T2)
Proposed Formula Rate for PACI Pointto-Point Transmission Service
Effective: October 1, 2011, through
September 30, 2016.
PACI.
Western’s PACI Seasonal Capacity =
Western’s share of PACI capacity (subject
to curtailment) under the current COI
transfer capability for the season. The
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Fmt 4703
Sfmt 4703
1.02
1.02
1.02
Available: Within the marketing area
served by SNR.
Applicable: To customers receiving
PACI firm and/or non-firm point-topoint transmission service.
Character and Conditions of Service:
Transmission service for three-phase,
alternating current at 60 hertz, delivered
and metered at the voltages and points
of delivery or receipt, adjusted for
losses, and delivered to points of
delivery. This service includes
scheduling and system control and
dispatch service needed to support the
transmission service.
Formula Rate: The proposed formula
rate for PACI firm and non-firm
transmission includes three
components:
Component 1:
three seasons are defined as follows:
Summer—June through October;
Winter—November through March; and
Spring—April through May.
E:\FR\FM\03JAN1.SGM
03JAN1
EN03JA11.027</GPH>
The estimated firm point-to-point
COTP transmission service rate
increased primarily due to an
inflationary increase of costs not a rate
methodology change.
Percent increase
136
Federal Register / Vol. 76, No. 1 / Monday, January 3, 2011 / Notices
Western will update the formula rate
resulting from Component 1 at least 15
days before the start of each COI rating
season. Rate change notifications will be
posted on the OASIS.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
The proposed formula rate for PACI
non-firm transmission includes the
same three components used in the
proposed formula rate for PACI firm
transmission.
Rate Comparison
The estimated firm and non-firm
point-to-point rates resulting from
Component 1 of the proposed formula
rate for PACI transmission service are
shown in the example below.
EXAMPLE—COMPARISON OF EXISTING RATES TO ESTIMATED RATES OF THE PROPOSED FORMULA RATE FOR PACI FIRM
AND NON-FIRM POINT-TO-POINT TRANSMISSION SERVICE
Season
Existing firm rate
Spring ...............
Summer ............
Winter ...............
$1.14 ($/MWh) ..
$1.13 ($/MWh) ..
$1.15 ($/MWh) ..
$1.16 ($/MWh)
$1.16 ($/MWh)
$1.17 ($/MWh)
The estimated firm, point-to-point
PACI transmission service rate
increased slightly due to an inflationary
increase of costs not a rate methodology
change.
jlentini on DSKJ8SOYB1PROD with NOTICES
Rate Recovery and Application
The proposed formula rate for PACI
transmission service is based on a RR
that recovers: (1) The PACI transmission
system costs for facilities associated
with providing transmission service;
(2) the non-facility costs allocated to
transmission service; (3) the pass
through of FERC’s or other regulatory
body’s accepted or approved charges or
credits; (4) the pass through of the
HBA’s charges or credits; (5) any other
statutorily-required costs or charges;
and (6) any other costs associated with
transmission service including
uncollectible debt.
The proposed formula rate includes
Western’s cost for transmission
scheduling, system control and dispatch
service. The proposed formula rate
applies to PACI firm and non-firm
point-to-point transmission service. The
rates resulting from Component 1 of the
proposed formula rate may be
discounted for short-term sales and
revenue from PACI unreserved use
penalties. The estimated rates resulting
from the proposed formula rate are
subject to change prior to the rates
taking effect. The rates resulting from
the proposed formula rate for the winter
season will be finalized by Western on
or before October 15, 2011.
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Rate change
(percent)
Estimated firm rate
Proposed Rate Schedule CV–TPT7
(Supersedes CV–TPT6)
Schedule of Rate for Transmission of
Western Power by Others
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To Western’s power
service customers who require
transmission service by a third party to
receive power sold by Western.
Character and Conditions of Service:
Transmission service for three-phase,
alternating current at 60 hertz, delivered
and metered at the voltages and points
of delivery or receipt, adjusted for
losses, and delivered to points as agreed
to by the parties.
Formula Rate: The proposed formula
rate for transmission of Western’s power
by others includes three components.
Component 1: When Western uses
transmission facilities other than its
own in supplying Western power and
costs are incurred by Western for the
use of such facilities, the customer will
pay all costs, including transmission
losses, incurred in the delivery of such
power.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
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1.02
1.02
1.02
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: Third-party transmission will
be billed monthly under the formula
rate.
Adjustments for losses: All losses
incurred for delivery of power under
this rate schedule shall be the
responsibility of the customer that
received the power.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the RR under this rate schedule will
be evaluated on a case-by-case basis to
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determine the appropriate treatment for
repayment and cash flow management.
Rate Comparison
Effective October 1, 2011, the cost of
this service is not changing from the
existing methodology and all costs are
pass through under this rate schedule.
Rate Recovery and Application
These costs are fully recovered from
the beneficiaries receiving this service,
and this is not changing from the
existing rate methodology.
Proposed Rate Schedule CV–UUP1
(New Rate Schedule)
Schedule of Rate for Unreserved Use
Penalties
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To transmission
customers using transmission not
reserved or in excess of reservation.
Character and Conditions of Service:
Transmission service for three-phase,
alternating current at 60 hertz, delivered
and metered at the voltages and points
of delivery or receipt, adjusted for
losses, and delivered to points of
delivery. This service includes
scheduling and system control and
dispatch service needed to support the
transmission service.
jlentini on DSKJ8SOYB1PROD with NOTICES
Summary
Western proposes to add a penalty
rate for unreserved use of transmission
for the CVP, COTP, and PACI in a new
rate schedule, Rate Schedule CV–UUP1.
Penalty Rate
The rate for Unreserved Use Penalties
service is 150 percent of the approved
transmission service rate for point-topoint transmission service assessed as
described above, plus 100 percent of the
approved ancillary service rates if
applicable.
Component 1: Unreserved Use
Penalties service is provided when a
transmission customer uses
transmission service that it has not
reserved or uses transmission service in
excess of its reserved capacity. A
transmission customer that has not
secured reserved capacity or exceeds its
firm or non-firm reserved capacity at
any point of receipt or any point of
delivery will be assessed Unreserved
Use Penalties.
The penalty charge for a transmission
customer who engages in unreserved
use is 150 percent of Western’s
approved transmission service rate for
point-to-point transmission service
assessed as follows: (1) The Unreserved
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Use Penalty for a single hour of
unreserved use will be based upon the
rate for daily firm point-to-point service;
(2) the Unreserved Use Penalty for more
than one assessment for a given
duration (e.g., daily) will increase to the
next longest duration (e.g., weekly); and
(3) the Unreserved Use Penalty for
multiple instances of unreserved use
(e.g., more than 1 hour) within a day
will be based on the rate for daily firm
point-to-point service. The penalty
charge for multiple instances of
unreserved use isolated to 1 calendar
week would result in a penalty based on
the charge for weekly firm point-topoint service. The penalty charge for
multiple instances of unreserved use
during more than 1 week within a
calendar month is based on the charge
for monthly firm point-to-point service.
Unreserved Use Penalties will not
apply to transmission customers
utilizing point-to-point transmission
service under Western’s OATT as a
result of action taken to support
reliability. Such actions include reserve
activations or uncontrolled event
response as directed by the responsible
reliability authority such as SBA, HBA
Reliability Coordinator, or Transmission
Operator.
A transmission customer that exceeds
its firm or non-firm reserved capacity is
required to pay for all ancillary services
identified in Western’s OATT associated
with the unreserved use of transmission
service. The transmission customer or
eligible customer will pay for ancillary
services based on the amount of
transmission service it used but did not
reserve. No penalty will be applied to
the ancillary service charges.
Unreserved Use Penalties collected
over and above the base firm or nonfirm point-to-point charge will be
distributed to customers as a credit on
future TRRs.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
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137
credits will be passed through using
Component 1 of the penalty rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the penalty rate.
Rate Comparison
This is a new rate schedule effective
October 1, 2011, through September 30,
2016.
Rate Recovery and Applicability
The rate recovers the cost of
transmission and applies a penalty for
such unreserved use. The revenue
resulting from the penalty portion will
be distributed as a credit to the relevant
TRRs. The penalty rate is applicable for
all unreserved use of transmission and
transmission in excess of reservation
except, as may be determined by
Western, in emergencies or reserve
sharing activations. Western will
provide written notification 30 days in
advance to its transmission customers
prior to implementing this penalty rate
and will also post a notification on its
OASIS Web site indicating the
implementation of Unreserved Use
Penalties.
Proposed Rates for Ancillary Services
This section includes proposed rates
for the following services: spinning
reserve, supplemental reserve,
regulation and frequency response, EI
and GI. Western’s costs for providing
transmission scheduling, system control
and dispatch service, and reactive
supply and voltage control are included
in the appropriate transmission or BR
and FP power formula rates.
Proposed Rate Schedule CV–SPR4
(Supersedes Schedule CV–SPR3)
Proposed Formula Rate for Spinning
Reserve Service
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To customers receiving
spinning reserve service.
Character and Conditions of Service:
Spinning reserve service supplies
capacity that is available immediately to
take load and is synchronized with the
power system.
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Formula Rate: The formula rate for
spinning reserve includes three
components:
Component 1: The formula rate for
spinning reserve service is the price
consistent with the CAISO’s market plus
all costs incurred as a result of the sale
of spinning reserves such as Western’s
scheduling costs.
For customers that have a contractual
obligation to provide spinning reserve to
Western and do not fulfill that
obligation, the penalty for nonperformance is the greater of actual cost
or 150 percent of the market price.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: The formula rate above will be
applied to the amount of spinning
reserve sold. Billing will occur monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the formula rate under this rate
schedule will be evaluated on a case-bycase basis to determine the appropriate
treatment for repayment and cash flow
management.
Rate Comparison
Western is not proposing a change to
the existing formula rate methodology
for spinning reserve service.
Rate Recovery and Application
The spinning reserve charge is
calculated for each hour during the
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month in order to derive the total
monthly charge. The proposed formula
rate for spinning reserve service is as
follows: (1) A price consistent with the
CAISO’s market price; (2) all costs
incurred as a result of the sale of
spinning reserves, such as Western’s
scheduling costs; (3) the cost of energy,
capacity, or generation that supports
spinning reserve service; (4) the pass
through of FERC’s or other regulatory
body’s accepted or approved charges or
credits; (5) the pass through of the
HBA’s charges or credits; and (6) any
other statutorily required costs or
charges. For customers that have a
contractual obligation to provide
spinning reserve to Western and do not
fulfill that obligation, the penalty for
non-performance is the greater of actual
cost or 150 percent of the market price.
The cost for spinning reserve required
to firm CVP generation for the current
hour and the following hour is included
in the PRR. Spinning reserves surplus to
those required to support the SBA and
firm CVP generation may be sold.
Surplus spinning reserves will be sold
at prices consistent with the CAISO
markets. Revenues from the sale of
surplus spinning reserves will offset the
PRR. The spinning reserve formula rate
will apply to SBA customers who
contract with Western to provide this
service.
Proposed Rate Schedule CV–SUR4
(Supersedes Schedule CV–SUR3)
Proposed Formula Rate for
Supplemental Reserve Service
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To customers receiving
supplemental reserve service.
Character and Conditions of Service:
Supplemental reserve service supplies
capacity that is available within the first
10 minutes to take load and is
synchronized with the power system.
Formula Rate: The formula rate for
supplemental reserve service includes
three components:
Component 1: The formula rate for
supplemental reserve service is the
price consistent with the CAISO’s
market plus all costs incurred as a result
of the sale of supplemental reserves,
such as Western’s scheduling costs.
For customers that have a contractual
obligation to provide supplemental
reserve service to Western and do not
fulfill that obligation, the penalty for
non-performance is the greater of actual
cost or 150 percent of the market price.
Component 2: Any charges or credits
associated with the creation,
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termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: The formula rate above will be
applied to the amount of supplemental
reserve service sold. Billing will occur
monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the formula rate under this rate
schedule will be evaluated on a case-bycase basis to determine the appropriate
treatment for repayment and cash flow
management.
Rate Comparison
Western is not proposing a change to
the existing formula rate methodology
for supplemental reserve service.
Rate Recovery and Application
The formula rate for supplemental
reserve service is as follows: (1) A price
consistent with the CAISO’s market
price; (2) all costs incurred as a result
of the sale of supplemental reserve
service, such as Western’s scheduling
costs; (3) the cost of energy, capacity, or
generation that supports supplemental
reserve service; (4) the pass through of
the HBA’s charges or credits; (5) the
pass through of FERC’s or other
regulatory body’s accepted or approved
charges or credits; and (6) any other
statutorily required costs or charges.
For customers that have a contractual
obligation to provide supplemental
reserve to Western and do not fulfill that
obligation, the penalty for non-
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PRR. The supplemental reserve formula
rate will apply to SBA customers who
contract with Western to provide this
service.
The annual RR includes: (1) The CVP
generation costs associated with
providing Regulation; and (2) the nonfacility costs allocated to Regulation.
The annual regulating capacity is onehalf of the total regulating capacity
bandwidths provided by Western under
the interconnected operations
agreements with SBA members.
The penalty for nonperformance by an
SBA customer who has committed to
self-provision for their regulating
capacity requirement will be the greater
of actual costs or 150 percent of the
market price.
Western will revise the formula rate
resulting from Component 1 based on
either of the following two conditions:
(1) Updated financial data available in
March of each year; or (2) a change in
the numerator or denominator that
results in a rate change of at least $0.25
per kWmonth.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
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Proposed Rate Schedule CV–RFS4
(Supersedes Schedule CV–RFS3)
Proposed Formula Rate for Regulation
and Frequency Response Service
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Rate Comparison
Western is not proposing a change to
the existing formula rate methodology.
The Regulation rate effective October 1,
2010, is $4.65 per kWmonth. Based on
the existing threshold for a rate change
of $0.25, we do not expect the rate to
change effective October 1, 2011.
Rate Recovery and Application
The annual RR includes: (1) The CVP
generation costs associated with
providing Regulation; and (2) the nonfacility costs allocated to Regulation.
The Regulation RR will be recovered
from SBA customers that have
contracted with Western for this service.
The revenues from Regulation service
will be applied to the PRR. The
estimated RR resulting from the
proposed formula rate is subject to
change prior to the rates taking effect.
The RR will be finalized by Western on
or before October 1, 2011.
Proposed Rate Schedule CV–EID4
(Supersedes Schedule CV–EID3)
Proposed Formula Rate for Energy
Imbalance Service
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To customers receiving EI
service.
Character and Conditions of Service:
EI is provided when a difference occurs
between the scheduled and the actual
delivery of energy to a load within the
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Applicable: To customers receiving
Regulation and Frequency Response
Service (Regulation).
Character and Conditions of Service:
Regulation is necessary to provide for
the continuous balancing of resources
and interchange with load and for
maintaining scheduled interconnection
frequency at 60 cycles per second.
Formula Rate: The proposed formula
rate for Regulation includes three
components:
Component 1:
SBA over an hour or in accordance with
approved policies and procedures. The
deviation, in MW, is the net scheduled
amount of energy minus the net metered
(actual delivered) amount.
EI service uses the deviation
bandwidth that is established in the
service agreement or Interconnected
Operations Agreements (IOA).
Formula Rate: The formula rate for EI
service includes three components:
Component 1: EI service is applied to
deviations as follows: (1) For deviations
within the bandwidth, there will be no
financial settlement; rather, EI will be
tracked and settled with energy; (2)
negative deviations (under delivery),
outside the deviation bandwidth, will
be charged the greater of 150 percent of
market price or actual cost; and (3)
positive deviations (over delivery),
outside the deviation bandwidth, will
be lost to the system.
Deviations which occur as a result of
actions taken to support reliability will
be resolved in accordance with existing
contractual requirements. Such actions
include reserve activations or
uncontrolled event responses as
directed by the responsible reliability
authority such as SBA, HBA, Reliability
Coordinator, or Transmission Operator.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
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performance is equal to the greater of
actual cost of generation or 150 percent
of the market price.
The cost for supplemental reserves
required to firm CVP generation for the
current hour and the following hour is
included in the PRR. Supplemental
reserve service surplus to those required
to support the SBA and firm CVP
generation may be sold. Surplus
supplemental reserves will be sold at
prices consistent with the CAISO
markets. Revenues from the sale of
supplemental reserves will offset the
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charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: Billing for negative deviations
outside the bandwidth will occur
monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the formula rate under this rate
schedule will be evaluated on a case-bycase basis to determine the appropriate
treatment for repayment and cash flow
management.
Rate Comparison
Western is not proposing a change to
the existing formula rate methodology.
Any changes to EI charges result from
changes to actual cost or market prices.
Rate Recovery and Application
Western is proposing to maintain its
existing tier methodology for EI. While
FERC Order No. 890 defines a three-tier
methodology, it allows alternatives to
pro forma design if the rate schedule
follows the intent of the three
principles: (1) Charges based on
incremental cost or some multiple
thereof; (2) charges must provide
incentive for accurate scheduling; and
(3) provisions address intermittent
renewable resources (wind/solar)
limited forecasting abilities by waiver of
the most punitive penalties.
Western’s existing EI rate schedule
follows the intent by: (1) Charges under
a tiered methodology where, within the
bandwidth, energy is exchanged, over
deliveries are lost to the system, and
under deliveries are charged the greater
of 150 percent of the CAISO market
price or Western’s actual cost; (2)
penalties outside the bandwidth also
provide incentives for good scheduling
practices; and (3) to the extent that an
entity incorporates intermittent
resources, Western proposes eliminating
the 150 percent of market price factor
for under deliveries. Western will
charge the greater of market price or
Western’s actual cost.
Given that Western’s customers will
be operating under existing agreements
during the applicable rate period,
Western will review FERC Order No.
890 pro forma approach, as well as
Western’s existing settlements and
billing processes and will consider a
transition to FERC’s pro forma tariff
methodology during Western’s next rate
process or earlier if deemed appropriate.
Accordingly, for deviations outside of
the bandwidth, the EI service charge is
recovered using the greater of 150
percent of the market price or Western’s
actual cost. The actual cost is calculated
using CVP generation RR and associated
energy. Additional costs subject to
recovery include HBA’s charges or
credits, FERC’s or other regulatory
body’s accepted or approved charges or
credits, and any other statutorilyrequired costs or charges.
The EI service charge will be
recovered from SBA customers that
have contracted with Western for this
service. The revenues from EI service
will be applied to the PRR. Since the
actual cost is calculated based on
Western’s cost of generation, it is subject
to change prior to the effective rate
period.
Below is an example of how the EI
charge is calculated using Component 1.
ENERGY IMBALANCE CHARGE EXAMPLE
CALCULATION (COMPONENT 1)
[On October 1, HE 1, Customer A has:]
Scheduled Net Interchange ..............
Actual Net Interchange .....................
90 MW
102
MW
Actual Energy in excess of Scheduled ...............................................
Contractual Bandwidth .....................
Energy Imbalance for HE 1 ..............
12 MW
8 MW
4 MW
To derive the total monthly charge for
Customer A, the EI is calculated for each
hour that it occurs during the month.
The EI charge is based upon a
comparison between the real-time
energy pricing from the CAISO for each
hour multiplied by 150 percent and
Western’s actual cost for that same hour.
The higher of the two is applied to
derive the EI charge. EI charge for
October 1, HE 1, is calculated as
follows:
October 1, Hour Ending 1
Price
Price comparison
MW
Charge
Western’s Calculated Actual Cost ............................
Real Time CAISO price ($21.84 * 150%) applied
per rate schedule.
$18.27
32.76
Actual < 150% of Market ..........................................
150% Market > Actual ..............................................
N/A
4
N/A
$131.04
jlentini on DSKJ8SOYB1PROD with NOTICES
Note: EI charge for October 1, HE 1, is calculated as follows: 4 MW * $32.76 = $131.04
Imbalances that occur as a result of
action taken by the generator, at
Western’s request, to support reliability
will not be subject to penalties. Such
actions include directives by SBA, HBA,
Reliability Coordinators, or reserve
activations and frequency correction
initiatives.
To the extent that an entity
incorporates variable resources,
treatment of such will be determined in
the associated contract.
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Proposed Rate Schedule CV–GID1 (New
Rate Schedule)
Schedule of Rate for Generator
Imbalance Service
Effective: October 1, 2011, through
September 30, 2016.
Available: Within the marketing area
served by SNR.
Applicable: To generators receiving
GI.
Character and Conditions of Service:
GI is provided when a difference occurs
between the scheduled and actual
delivery of energy from an eligible
generation resource within the SBA,
over an hour, or in accordance with
approved policies and procedures. The
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Fmt 4703
Sfmt 4703
deviation in MW is the net scheduled
amount of generation minus the net
metered output from the generator’s
(actual generation) amount.
GI is subject to the deviation
bandwidth to be established in the
service agreement or IOA.
Formula Rate: The formula rate for
the GI has three components:
Component 1: GI is applied to
deviations as follows: (1) For deviations
within the bandwidth, there will be no
financial settlement; rather, GI will be
tracked and settled with energy; (2)
negative deviations (under delivery),
outside the deviation bandwidth, will
be charged the greater of 150 percent of
market price or actual cost; and (3)
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positive deviations (over delivery),
outside the deviation bandwidth, will
be lost to the system.
Deviations which occur as a result of
actions taken to support reliability will
be resolved in accordance with existing
contractual requirements. Such actions
include reserve activations or
uncontrolled event responses as
directed by the responsible reliability
authority such as SBA, HBA, Reliability
Coordinator, or Transmission Operator.
To the extent that an entity
incorporates intermittent resources,
deviations will be charged as follows:
(1) For deviations within the
bandwidth, there will be no financial
settlement; rather, GI will be tracked
and settled with energy; (2) negative
deviations (under delivery), outside the
deviation bandwidth, will be charged
the greater of market price or actual
cost; and (3) positive deviations (over
delivery), outside the deviation
bandwidth, will be lost to the system.
Component 2: Any charges or credits
associated with the creation,
termination, or modification to any
tariff, contract, or rate schedule
accepted or approved by FERC or other
regulatory body will be passed on to
each relevant customer. The FERC’s or
other regulatory body’s accepted or
approved charges or credits apply to the
service to which this rate methodology
applies. When possible, Western will
pass through directly to the relevant
customer FERC’s or other regulatory
body’s accepted or approved charges or
credits in the same manner Western is
charged or credited. If FERC’s or other
regulatory body’s accepted or approved
charges or credits cannot be passed
through directly to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Component 3: Any charges or credits
from the HBA applied to Western for
providing this service will be passed
through directly to the relevant
customer in the same manner Western
is charged or credited to the extent
possible. If the HBA’s costs or credits
cannot be passed through to the relevant
customer in the same manner Western
is charged or credited, the charges or
credits will be passed through using
Component 1 of the formula rate.
Billing: Billing for negative deviations
outside the bandwidth will occur
monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply
to the formula rate under this rate
schedule will be evaluated on a case-bycase basis to determine the appropriate
treatment for repayment and cash flow
management.
Rate Comparison
This is a new rate schedule effective
October 1, 2011, through September 30,
2016.
Rate Recovery and Application
Western is proposing to adopt its
existing EI methodology for GI. Similar
to EI, FERC Order No. 890 defines a
three-tier methodology for GI. The order
allows alternatives to pro forma design
if the rate schedule follows the intent of
the three principles: (1) Charges based
on incremental cost or some multiple
thereof; (2) charges must provide
incentive for good scheduling practice;
and (3) provisions address intermittent
renewable resources (wind/solar) to
waive punitive penalties.
Similar to Western’s existing EI rate
schedule, GI will follow the intent by:
(1) Charges under a tiered methodology;
where, within the bandwidth, energy is
exchanged, over deliveries are lost to
the system, and under deliveries are
charged the greater of 150 percent of the
CAISO market price or Western’s actual
cost; (2) penalties outside the
bandwidth also provide incentives for
good scheduling practices; and (3) to the
extent that an entity incorporates
intermittent resources, Western
proposes eliminating the 150 percent of
market price factor for under deliveries.
Western will charge the greater of
market price or Western’s actual cost.
Currently, Western has no existing
customers under GI. Western will
review FERC Order No. 890 pro forma
approach, as well as Western’s existing
settlements and billing processes and
will consider a transition to FERC’s pro
forma tariff methodology during
Western’s next rate process or earlier if
deemed appropriate.
Accordingly, for deviations outside of
the bandwidth, the GI charge is
recovered using the greater of 150
percent of the market price or Western’s
actual cost. The actual cost is calculated
using CVP generation RR and associated
energy. Additional costs subject to
recovery include HBA’s charges or
credits, FERC’s or other regulatory
body’s accepted or approved charges or
credits, and any other statutorily
required costs or charges.
The GI charge will be recovered from
SBA customers that have contracted
with Western for this service. The
revenues from GI will be applied to the
PRR. Since the actual cost is calculated
based on Western’s cost of generation, it
is subject to change prior to the effective
rate period.
Below is an example of how the GI
charge is calculated using Component 1.
GENERATION IMBALANCE SERVICE
CHARGE EXAMPLE CALCULATION
(COMPONENT 1)
[If, on October 1, HE 1, Customer A has:]
Scheduled Net Interchange ..............
Actual Net Interchange .....................
Scheduled Generation in excess of
Actual Generation (under delivery)
Contractual Bandwidth .....................
Generator Imbalance for HE 1 .........
12 MW
8 MW
4 MW
To derive the total monthly charge for
Customer A, the GI is calculated for
each hour that it occurs during the
month.
The GI charge is based upon a
comparison between the real-time
energy pricing from the CAISO for each
hour multiplied by 150 percent and
Western’s actual cost for that same hour.
The greater of the two is applied to
derive the GI charge. The following
table is an example of how Western
determines the GI charge related to the
GI in the table above:
October 1, Hour Ending 1
Price
Price comparison
Western’s Calculated Actual Cost ............................
Real Time CAISO price ($21.84 * 150%) applied
per rate schedule.
jlentini on DSKJ8SOYB1PROD with NOTICES
102
MW
90 MW
MW
$18.27
32.76
Actual < 150% of Market ..........................................
150% Market > Actual ..............................................
Charge
N/A
4
N/A
$131.04
Note: GI charge for October 1, HE 1 is calculated as follows: 4 MW * $32.76 = $131.04
GI charges will not apply as a result
of action taken to support reliability.
Such actions include reserve activations
or uncontrolled event response as
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20:10 Dec 30, 2010
Jkt 223001
directed by the responsible reliability
authority, such as, SBA, HBA,
Reliability Coordinator, or Transmission
Operator.
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Fmt 4703
Sfmt 4703
To the extent that an entity
incorporates VRs, treatment of such will
be determined in the associated
contract.
E:\FR\FM\03JAN1.SGM
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Federal Register / Vol. 76, No. 1 / Monday, January 3, 2011 / Notices
GI and EI service charges/energy
accounting will be netted within the
hour, or in accordance with approved
policies and procedures, with charges
for both services allowable only when
the imbalances for both are deficit rather
than offsetting (note that this only
applies to netting within the
bandwidth).
Potential Example of an Addition
Presented above:
Transmission Provider or SBA can
charge customer for both GI and EI
service in the same hour, but not if the
imbalances offset each other.
Example of Offsetting:
• For example—Customer A
〉〉 GI:–10MW deficit
〉〉 EI service: 5MW surplus
〉〉 Customer A charged: 5MW (GI
charge)
Example of Aggravating (increasing—
absolute value)
• For example—Customer B
〉〉 GI Service:–10MW deficit
〉〉 EI service:–10MW deficit
〉〉 Customer A charged:–10MW for GI
charge plus -10MW for EI charge
Legal Authority
These proposed rates for COTP, PACI,
CVP transmission, Western power, and
related services are being established
pursuant to the DOE Organization Act
(42 U.S.C. 7101–7352); the Reclamation
Act of 1902 (ch. 1093, 32 Stat. 388), as
amended and supplemented by
subsequent enactments, particularly
section 9(c) of the Reclamation Project
Act of 1939 (43 U.S.C. 485(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 FERC.
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985 (50 FR 37835).
jlentini on DSKJ8SOYB1PROD with NOTICES
Availability of Information
All brochures, studies, comments,
letters, memorandums, or other
documents made or kept by Western for
developing the proposed rates are
available for inspection and copying at
the Sierra Nevada Regional Office,
located at 114 Parkshore Drive, Folsom,
California.
VerDate Mar<15>2010
20:10 Dec 30, 2010
Jkt 223001
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National
Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321, et seq.), the
Council on Environmental Quality
Regulations for implementing NEPA (40
CFR parts 1500–1508); and DOE NEPA
Implementing Procedures and
Guidelines (10 CFR part 1021), Western
has determined that this action is
categorically excluded from further
NEPA analysis.
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Dated: December 22, 2010.
Timothy J. Meeks,
Administrator.
[FR Doc. 2010–33108 Filed 12–30–10; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–9245–9]
Notice of Prevention of Significant
Deterioration Final Determination for
Russell City Energy Center
Environmental Protection
Agency (‘‘EPA’’).
ACTION: Notice of final action.
AGENCY:
viewing of these documents, call
Shaheerah Kelly at (415) 947–4156. Due
to building security procedures, please
call Ms. Kelly at least 24 hours before
you would like to view the documents.
FOR FURTHER INFORMATION CONTACT:
Shaheerah Kelly, Air Division, U.S.
Environmental Protection Agency,
Region 9, 75 Hawthorne St., San
Francisco, CA 94105. Anyone who
wishes to review the EAB decision can
obtain it at https://www.epa.gov/eab/.
SUPPLEMENTARY INFORMATION:
Notification of EAB Final Decision: The
BAAQMD, acting under authority of a
PSD delegation agreement dated
February 4, 2008, issued a PSD permit
to Russell City Energy Center, LLC, on
February 3, 2010, granting approval to
construct a new 600-megawatt natural
gas-fired combined-cycle power plant in
Hayward, California. Five petitioners
filed timely Petitions for Review of the
PSD decision with the EAB. The EAB
issued an Order denying the Petitions
for review on November 18, 2010. One
petitioner filed a Motion and
Supplemental Motion for
Reconsideration and/or Clarification
and Stay of the EAB’s November 18,
2010 Order.
On December 17, 2010, the EAB
issued an Order denying the Motion and
Supplemental Motion for
Reconsideration and/or Clarification
and Stay.
Dated: December 20, 2010.
Kerry Drake,
Acting Director, Air Division, Region 9.
[FR Doc. 2010–32969 Filed 12–30–10; 8:45 am]
BILLING CODE 6560–50–P
This notice announces that on
November 18, 2010, the Environmental
Appeals Board (EAB) of the EPA denied
Petitions for Review of a Federal
Prevention of Significant Deterioration
(PSD) Permit issued to Russell City
Energy Center, LLC by the Bay Area Air
Quality Management District
(‘‘BAAQMD’’).
SUMMARY:
DATES: The effective date for the EAB’s
decision is November 18, 2010.
Pursuant to section 307(b)(1) of the
Clean Air Act, 42 U.S.C. 7607(b)(1),
judicial review of this permit decision,
to the extent it is available, may be
sought by filing a Petition for Review in
the United States Court of Appeals for
the Ninth Circuit on or before March 4,
2011.
ADDRESSES: The documents relevant to
this notice are available for public
inspection during normal business
hours at the following address: U.S.
Environmental Protection Agency,
Region 9, 75 Hawthorne St., San
Francisco, CA 94105. To arrange
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ENVIRONMENTAL PROTECTION
AGENCY
[FRL–9247–1]
Notice of a Regional Project Waiver of
Section 1605 (Buy American) of the
American Recovery and Reinvestment
Act of 2009 (ARRA) to the Town of
Smyrna, DE
SUMMARY: The EPA is hereby granting a
waiver of the Buy American
Requirements of ARRA Section 1605
under the authority of Section
1605(b)(2) [manufactured goods are not
produced in the United States in
sufficient and reasonably available
quantities and of a satisfactory quality]
to the Town of Smyrna, DE (‘‘Town’’),
for the purchase of GreensandPlus
pressure filter media, manufactured in
Brazil, for six pressure filters. This is a
project specific waiver and only applies
to the use of the specified product for
the ARRA project being proposed. Any
E:\FR\FM\03JAN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 1 (Monday, January 3, 2011)]
[Notices]
[Pages 127-142]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-33108]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
The Central Valley Project, the California-Oregon Transmission
Project, the Pacific Alternating Current Intertie, and Path 15
Transmission--Rate Order No. WAPA-156
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Power, Transmission, and Ancillary Services
Rates.
-----------------------------------------------------------------------
SUMMARY: The Western Area Power Administration (Western) is proposing
new and revised formula rates and information for the following:
Western power, the Central Valley Project (CVP) transmission, the
California-Oregon Transmission Project (COTP) transmission, the Pacific
Alternating Current Intertie (PACI) transmission, ancillary services,
custom product power, and information on Path 15 transmission upgrade.
In addition to these existing rates for services, Western also is
proposing to implement two new rates and services: Unreserved Use
Penalties and Generator Imbalance Services (GI).
[[Page 128]]
Western is not proposing any changes to its existing formula rate
methodologies. The proposed rates will provide sufficient revenue to
pay all annual costs including interest expense, investments, and aid
to irrigation within the allowable time periods. Western's rate
brochure providing detailed information on the proposed formula rates
will be available January 11, 2011, to all interested parties upon
request.
The current rates for existing services expire on September 30,
2011.\1\ If approved, the proposed rates would become effective on
October 1, 2011, and remain in effect through September 30, 2016, or
until superseded by another rate schedule. Publication of this Federal
Register notice begins the formal process for the proposed rate
adjustments.
---------------------------------------------------------------------------
\1\ See Rate Order No. WAPA-139, 73 FR 48381 (August 19, 2008).
DATES: The consultation and comment period will begin on the date of
publication of the Federal Register notice and will end April 4, 2011.
Western will present a detailed explanation of the proposed rates at a
public information forum. The public information forum date is: January
25, 2011, 1 p.m. Pacific Standard Time, Folsom, CA.
Western will accept written comments anytime during the
consultation and comment period. In addition, Western will accept oral
and written comments at a public comment forum. The public comment
forum date is: March 1, 2011, 1 p.m. Pacific Standard Time, Folsom, CA.
ADDRESSES: Send written comments to Mr. Thomas R. Boyko, Regional
Manager, or Mr. Charles J. Faust, Rates Manager, Sierra Nevada Customer
Service Region, Western Area Power Administration, 114 Parkshore Drive,
Folsom, CA 95630-4710, or e-mail comments to SNR-FY12RateCase@wapa.gov.
Western will accept written comments anytime during the
consultation and comment period. Western will post comments it receives
on Western's Web site at https://www.wapa.gov/sn/marketing/rates/ratesprocess/formalProcess/index.asp. Western must receive written
comments by the end of the consultation and comment period to ensure
consideration.
Western will host both the public information and public comment
forums at: Lake Natoma Inn, 702 Gold Lake Drive, Folsom, CA 95630-2559,
telephone number (916) 351-1500.
FOR FURTHER INFORMATION CONTACT: Mr. Charles J. Faust, Rates Manager,
Sierra Nevada Customer Service Region, Western Area Power
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, telephone
(916) 353-4468, or e-mail SNR-FY12RateCase@wapa.gov.
SUPPLEMENTARY INFORMATION: This Federal Register notice initiates the
formal public process to replace the Federal Energy Regulatory
Commission's (FERC) approved rate schedules effective beginning January
1, 2005, ending September 30, 2011.
The following discussion provides an overview of the proposed
formula rates and components, including a rate comparison, rate
recovery, and applicability. Western held 14 public Informal Rate
meetings beginning June 2008 through April 2010. Based on stakeholders'
comments and Western's analysis, Western is not proposing any changes
to existing rate methodologies. Western proposes adding new rate
schedules for unreserved use penalties and generator imbalance
services. Western will continue to operate as a Sub-Balancing Authority
(SBA) under contract with the Sacramento Municipal Utility District,
who operates the Host Balancing Authority (HBA).
Prior to the start of each fiscal year (FY), Western will calculate
and publish an annual Power Revenue Requirement (PRR) to determine the
total cost of power to be allocated to preference customers. For
example, by October 1, 2011, Western will publish the PRR for FY 2012,
which begins October 1, 2011, and ends September 30, 2012. As part of
the rate development, Western prepares a Power Repayment Study (PRS)
each FY to determine if revenue will be sufficient to repay, within the
required time periods, all costs assigned to the commercial power
function. Repayment criteria are based on legislation and applicable
policies, including DOE Order RA 6120.2. Generally, the PRR includes
operation and maintenance (O&M) expenses, purchased power for Project
Use and First Preference (FP) customers' loads, interest and other
expenses (including any other statutorily-required costs or charges),
investment repayment, and the Washoe Project annual PRR that remains
after project use loads are met. Revenues from project use,
transmission, ancillary services, and other services are offset against
expenses in the PRR; and the remainder is collected from Base Resource
(BR) and FP customers. The PRR is reviewed during March of each year;
and if such review results in a change of $5 million or more, the PRR
is adjusted for the remaining 6-month period. The PRR is an estimate of
revenues and costs including investment and repayment projections from
the PRS. Any deviation from estimate to actual will increase or
decrease annual project repayment. Project repayment is measured over
the long term to ensure repayment is met and to maintain rate
stability.
The PRR is allocated to Western's preference customers, namely, FP
customers based on their FP percentages, and the remaining amount to BR
customers based on their BR allocation, adjusted for programs, such as,
hourly exchange. The Trinity River Division Act of 1955 (69 Stat. 719)
and the Flood Control Act of 1962 (76 Stat. 1173, 1191-1192) accorded
first preference to CVP power to customers in Trinity, Tuolumne, and
Calaveras Counties. A BR customer, under the 2004 Marketing Plan, is an
entity that has executed a BR contract and is allocated a percentage of
the BR.
In order for Western to meet the load requirements, beyond
delivered BR, for Full Load Service (FLS) customers and Variable
Resource (VR) customers, Western may make supplemental power (SP)
purchases, pursuant to the Custom Product Power (CPP) rate schedule.
FLS and VR customers who contract with Western for such service will
pay all SP costs. FLS customers pay a portfolio management charge
pursuant to their contract, whereas VR customers pay a scheduling
charge pursuant to the proposed rate schedule.
At least annually, Western will publish the CVP transmission rates
for point-to-point and network integration transmission service, the
seasonal COTP and PACI transmission rates, and CVP regulation and
frequency response service rates. Western prepares a detailed cost-of-
service study to determine the costs, by project, that support the
transfer capability of each transmission system and the costs that
support the generation capability of the CVP system. Generally, the
costs allocated through the cost-of-service study for the transmission
systems include O&M, interest, and depreciation expenses. Western's
costs for scheduling, system control and dispatch service associated
with CVP, COTP, and PACI transmission service are included and
recovered through the respective transmission system's RR. Third-party
transmission service costs are passed through directly to each
requesting customer.
Spinning and supplemental reserves are charged the price consistent
with the California Independent System Operator's (CAISO) market price
plus all costs incurred for the sale of these reserves. Customers who
have a
[[Page 129]]
contractual obligation to provide spinning and supplemental reserves
and do not fulfill their obligation will be assessed a penalty equal to
the greater of Western's actual cost or 150 percent of the market
price. Similarly, for Energy Imbalance (EI) service, customers outside
of their contractual bandwidth (under delivery) will pay the greater of
150 percent of the market price or Western's actual cost. Given
Western's EI customers are and will continue to operate under existing
agreements, Western will continue its existing rate methodology for EI.
During the applicable rate period, Western will review FERC Order No.
890 pro forma approach, as well as Western's existing settlements and
billing processes and will reconsider a transition to FERC's pro forma
tariff methodology during Western's next rate process or earlier if
deemed appropriate.
Finally, based on the requirements under FERC's Order No. 890,
Western proposes adding two new rate schedules to be effective during
the new rate period: Unreserved Use Penalties and GI. Western proposes
the Unreserved Use Penalties be assessed at 150 percent of the
effective point-to-point transmission rate when transmission service is
used and not reserved or when used in excess of reservation. Western
proposes the GI rate use the same tiered methodology as Western's
existing and proposed EI service rate and any subsequent changes. Note,
currently Western has no customers subject to this proposed GI rate.
Information on Path 15 Transmission Upgrade
The Path 15 Transmission Upgrade was completed in 2005. Western has
turned over the operational control of Western's Path 15 Upgrade to the
CAISO. Western maintains the lines and is compensated by Atlantic Path
15, LLC for the Operation and Maintenance work costs. The CAISO charges
for use on the Path 15 Upgrade as part of its rates. Western does not
charge a separate rate for Path 15. Western collects revenues from the
CAISO under its agreements with the CAISO. Under Amendment No. 48, the
CAISO remits to Western, wheeling, congestion, and Congestion Revenue
Rights revenues associated with Western's rights on the Path 15
transmission.\2\
---------------------------------------------------------------------------
\2\ Amendment No. 48 amended CAISO's tariff to provide
congestion revenues, wheeling revenues, and firm transmission rights
auction revenues to entities other than CAISO's Participating
Transmission Owners, if any such entities fund transmission facility
upgrades on the CAISO grid. See Federal Energy Regulatory Commission
Docket No. ER03-407-000.
---------------------------------------------------------------------------
Proposed Rate Schedules and Discussion
Proposed Rate Schedule Cv-F13 (Supersedes CV-F12)
Schedule of Rates for Base Resource and First Preference Power
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by the Sierra Nevada
Customer Service Region (SNR).
Applicable: To the BR and FP power customers.
Character and Conditions of Service: Alternating current, 60 hertz,
three-phase, delivered and metered at the voltages and points
established by contract. This service includes the CVP transmission (to
include reactive supply and voltage control from Federal generation
sources needed to support the transmission service), spinning reserve
service, and supplemental reserve service.
Power Revenue Requirement: Western will develop the PRR prior to
the start of each FY. The PRR will be divided into two 6-month periods,
October through March and April through September. A monthly PRR will
be calculated by dividing each 6-month PRR by six. The PRR for the
April-through-September period will be reviewed in March of each year.
The review will analyze financial data from the October-through-
February period, to the extent information is available, as well as
forecasted data for the March-through-September period. If there is a
change of $5 million or more, the PRR for the April-through-September
period will be recalculated. The PRR is allocated to FP and BR
customers based on the formula rates.
Example of Power Revenue Requirement Allocation to First Preference and
Base Resource
------------------------------------------------------------------------
Component Formula Allocation
------------------------------------------------------------------------
Annual PRR..................... ....................... $70,000,000
FP Customer Allocation (Total $70,000,000 x 5%....... 3,500,000
FP % = 5%).
Remaining PRR Allocated to BR.. $70,000,000-$3,500,000. 66,500,000
------------------------------------------------------------------------
Note: This example is intended to show the PRR allocation to the
customer groups and is not adjusted for billing or midyear
adjustments.
First Preference Power Formula Rate: The annual FP customer
allocation is equal to the annual PRR multiplied by the relevant FP
percentage.
Component 1:
[GRAPHIC] [TIFF OMITTED] TN03JA11.024
Where:
FP Customer Load = An FP customer's forecasted annual load in
megawatthours (MWh).
Gen = The forecasted annual CVP and Washoe generation (MWh).
Power Purchases = Power purchases for project use and FP loads
(MWh).
Project Use = The forecasted annual project use loads (MWh).
MRR = Monthly Power Revenue Requirement.
Western will develop the FP customer percentage prior to the start
of each FY. During March of each FY, each FP customer's percentage will
be reviewed. If, as a result of the review, there is a change in the FP
customer's percentage of more than one-half of one percent, the
percentage will be revised for the April-through-September period.
The percentages in the table below are the maximum percentages for
each FP customer that will be effective to the MRR during the rate
period October 1, 2011, through September 30, 2016. The maximum
percentages were determined based on a critically dry year where there
are hydrologic conditions that result in low CVP generation and,
consequently, low levels of BR. An FP
[[Page 130]]
percentage cannot exceed the maximum except in instances where
individual FP customer percentages increase due to load growth. If
these maximum percentages are used for determining the FP customer's
charges for more than 1 year, Western will evaluate their percentage
from the formula rate versus the maximum percentage and make
adjustments as appropriate.
First Preference's Actual Maximum Percentages Effective Rate Period
------------------------------------------------------------------------
Maximum FP customer's
FP customers percentage applied to the
MRR (%)
------------------------------------------------------------------------
Sierra Conservation Center................ 1.58
Calaveras Public Power Agency............. 3.81
Trinity Public Utilities District......... 11.99
Tuolumne Public Power Agency.............. 3.16
-----------------------------
Total................................. 20.54
------------------------------------------------------------------------
Below is a sample calculation for an FP customer monthly charge for
power.
Example--First Preference Monthly Customer Charge Calculation
------------------------------------------------------------------------
------------------------------------------------------------------------
Numerator:
FP Customer Load--MWh................................. 10,000
Denominator:
Washoe Generation--MWh................................ 2,500
CVP Generation--MWh................................... 3,700,000
Project Use Load--MWh................................. (1,200,000)
Project Use Purchase--MWh............................. 47,000
Calculated Percentage:
FP Customer Percentage................................ 0.39%
Monthly Power Revenue Requirement (MRR)................. $3,333,333
FP Customer Monthly Charge = (FP % x MRR)............... $13,000
------------------------------------------------------------------------
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed through directly to the
relevant customer in the same manner Western is charged or credited,
the charges or credits will be passed through using Component 1 of the
formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant customer in the same manner Western is charged or credited to
the extent possible. If the HBA's costs or credits cannot be passed
through to the relevant customer in the same manner Western is charged
or credited, the charges or credits will be passed through using
Component 1 of the formula rate.
BR Formula Rate: The annual BR allocation is equal to the annual
PRR less the annual FP customer allocation.
Component 1:
BR Customer Allocation = (BR RR x BR %)
Where:
BR RR = BR Monthly Revenue Requirement (RR)
BR % = BR percentage for each customer as indicated in the BR
contract after adjustments for programs, such as hourly exchange, if
applicable.
After the FP customers' share of the annual PRR has been
determined, the remainder of the annual PRR is recovered from the BR
customers. The BR RR will be collected in two 6-month periods. For
October through March, 25 percent of the BR RR will be collected. For
April through September, 75 percent of the BR RR will be collected.
A BR RR is calculated by dividing the BR 6-month RR by six. The
revenues from the sale of surplus BR will be applied to the annual BR
RR for the following FY.
An example of a reallocation program is the Hourly Exchange (HE)
Program. BR customers pay for exchange energy, hourly or seasonally, by
adjusting the BR percentage that is applied to the BR RR. Adjustments
to a customer's BR percentage for seasonal exchanges will be reflected
in the customer's BR contract.
An illustration of the adjustment to a customer's BR percentage for
HE energy is shown in the example below.
Example of Base Resource Percentage Adjustments for Hourly Exchange Energy
--------------------------------------------------------------------------------------------------------------------------------------------------------
BR % from Hourly BR = 30 Customer's BR Customers BR delivered
BR customer contract MWh > load receiving HE (adj'd for HE) Revised BR %
--------------------------------------------------------------------------------------------------------------------------------------------------------
Customer A.............................................. 20 6 3 0 3 10.0
Customer B.............................................. 10 3 0 1 4 13.3
Customer C.............................................. 70 21 0 2 23 76.7
-----------------------------------------------------------------------------------------------
Total............................................... 100 30 3 3 30 100.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed
[[Page 131]]
through directly to the relevant customer in the same manner Western is
charged or credited, the charges or credits will be passed through
using Component 1 of the formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant customer in the same manner Western is charged or credited to
the extent possible. If the HBA's costs or credits cannot be passed
through to the relevant customer in the same manner Western is charged
or credited, the charges or credits will be passed through using
Component 1 of the formula rate.
Billing: Billing for BR and FP power will occur monthly using the
respective formula rate.
Adjustment for Losses: Losses will be accounted for under this rate
schedule as stated in the service agreement.
Adjustment for Audit Adjustments: Financial audit adjustments that
apply to the RR under this rate schedule will be evaluated on a case-
by-case basis to determine the appropriate treatment for repayment and
cash flow management.
Rate Comparison
Comparison of the existing to the proposed RR results in a change
in costs and not a rate methodology change. The 0.86 percent PRR
increase is due to an inflationary change to O&M, as well as increased
interest expense. Those costs are offset by increased transmission
revenue due to the anticipated completion of assets supporting the
transmission function. The table below compares the existing RRs (FY
2011) to the estimated RRs (FY 2012) under the proposed formula rates.
Comparison of Existing to Proposed Power Revenue Requirement, and Allocation to First Preference and Base
Resource Customers
----------------------------------------------------------------------------------------------------------------
Estimated RRs for
the proposed
Service Existing RRs formula rate Percent
(effective FY change (%)
2012)
----------------------------------------------------------------------------------------------------------------
PRR.......................................................... $75,751,929 $76,401,847 0.86
FP RR........................................................ 3,636,093 3,644,368 0.02
BR RR........................................................ 72,115,836 72,757,479 0.89
----------------------------------------------------------------------------------------------------------------
The table below compares the FP percentages as well as their
maximum percentages for the two periods.
First Preference Percentage Comparison, and Actual Maximum Percentages Effective Rate Period
----------------------------------------------------------------------------------------------------------------
FP percentages Maximum FP customer's
-------------------------------- percentage applied to the MRR
FP Customers -------------------------------
Existing (%) Estimated (%) Existing (%) Estimated (%)
----------------------------------------------------------------------------------------------------------------
Sierra Conservation Center...................... 0.37 0.37 1.39 1.58
Calaveras Public Power Agency................... 0.90 0.90 3.49 3.81
Trinity Public Utilities District............... 2.80 2.80 9.21 11.99
Tuolumne Public Power Agency.................... 0.73 0.70 3.42 3.16
---------------------------------------------------------------
Total....................................... 4.80 4.76 17.51 20.54
----------------------------------------------------------------------------------------------------------------
The change in FP percentages is due to changes in generation and FP
customer loads not a rate methodology change. The increase in FP
maximum percentage is due to a collective increase in FP customer loads
not a rate methodology change.
During the effective rate period, if deemed appropriate, Western
will reevaluate the FP maximum percentage based on new data.
Rate Recovery and Application
The formula rates for CVP FP power and BR power are based on a PRR
that recovers: (1) O&M expense allocated to power; (2) CVP network
transmission; (3) annual investment and replacement repayment; (4) aid-
to-irrigation costs; (5) interest expense; (6) power purchases for
firming BR; (7) Washoe project annual costs after project use loads are
met; (8) other miscellaneous expenses allocated to power, such as,
settlements, California-Oregon Intertie (COI) path operator costs,
etc.; (9) the pass through of FERC's or other regulatory body's
accepted or approved charges or credits; (10) the pass through of the
HBA's charges or credits; (11) any other statutorily-required costs or
charges; and (12) any other costs associated with BR or FP power
service including uncollectible debt.
Expenses are offset by revenues from project use energy,
transmission revenue, ancillary service revenue, scheduling
coordinator, portfolio management and VR charge administrative fees,
all pass through revenue, and any other miscellaneous revenue.
The PRR will be allocated first to FP customers based on their
percentages, subject to the maximum cap, then the remaining amount to
BR customers based on their BR allocation percentages, adjusted for
programs, such as, HE if applicable.
The BR RR will be collected in two, 6-month periods: 25 percent for
October through March and 75 percent for April through September.
However, the FP RR is not subject to the 25/75 percent split; and it
will be collected evenly over a 12-month period.
The formula rates will be effective at the beginning of each FY and
reviewed in March of each year. If the March mid-year review reflects a
change of $5 million or more, the annual PRR will be revised. The FP
percentages are also reviewed at mid-year. If the mid-year
[[Page 132]]
review reflects a change to a FP customer's percentage of more than one
half of one percent, that customer's percentage will be revised for the
remainder of the FY.
The formula rates apply to CVP BR and FP power customers. The
estimated rates are subject to change prior to the rates taking effect.
The rates will be finalized by Western on or before October 1, 2011.
Proposed Formula Rate for Custom Product Power and Effective Rate for
Variable Resource Schedules
Rate Schedule CPP-2 (Supersedes CPP-1)
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by SNR.
Applicable: To customers that contract with Western for CPP.
To VR customers requesting scheduling for this service. VR
customers will pay a scheduling charge to recover Western's cost for
scheduling VR CPP service.
Character and Conditions of Service: Alternating current, 60 hertz,
three-phase, delivered and metered at the voltages and points
established by contract.
Formula Rate: The formula rate for CPP includes three components:
Component 1: The customer will pay all costs incurred in the
provision of CPP. These costs will be passed through to the customer.
The methodology used to calculate the amount of the pass through will
be based on the type of funding used to purchase the CPP. The CPP
includes, but is not limited to, SP and BR firming power. If in the
event customer advance funding is used to purchase CPP, then allocation
of surplus CPP sales will be determined based on customer's account
status.
If the CPP is funded through appropriations, Federal reimbursable,
or use of receipts authority, the cost of the CPP is passed through to
the customer(s) for whom Western has made the purchase. The CPP funded
through appropriations, Federal reimbursable, or use of receipts
authority that is surplus to the load requirements of the customer(s)
will be sold. Proceeds from the sale of surplus CPP funded through use
of receipts, Federal reimbursable, or appropriations authority will be
applied to the CPP purchase cost for the customer(s) to the extent
possible. If the cost of the CPP is fully recovered and proceeds remain
from the sale of surplus CPP, the remaining proceeds will be used to
reduce the PRR.
The table below illustrates the pass through of the CPP costs to
each customer and the treatment of proceeds from the sale of surplus
CPP funded through appropriations, Federal reimbursable, or use of
receipts authority. As shown below, Customers A, B, and C are
responsible for paying the full costs of the CPP purchase made by
Western (total CPP RR is $780). The CPP RR of $780 is reduced by the
sale of 1 MWh at $45, which reduces the CPP RR to $735. Therefore, the
reduced CPP RR of $735 is prorated to each customer based on the amount
of CPP purchased on their behalf.
Example Custom Product Power Cost Recovery With Proceeds From Sales of Surplus Custom Product Power Use of Receipts, Federal Reimbursable, or
Appropriations Authority
[If Western made a CPP purchase of 13 MW for the hour @ $60/MWh = $780]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proceeds from
CPP purchased CPP USED (MWh) CPP Costs Surplus CPP excess CPP CPP customer
(MWh) sold sales charges
--------------------------------------------------------------------------------------------------------------------------------------------------------
Customer A.............................................. 5 5 .............. 0 .............. $283
Customer B.............................................. 4 4 .............. 0 .............. 226
Customer C.............................................. 4 3 .............. 1 .............. 226
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total............................................... 13 12 $780 1 $45 735
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
1. Western sold 1 MWh of CPP at $45/MWh = $45.
2. Proceeds from the sale of surplus CPP reduce the CPP Costs prorated based on the amount of CPP purchased.
Effective October 1, 2011, Western will charge $38.22 per schedule
per day to cover its administrative costs for procuring and scheduling
CPP if the customer has not contracted with Western for this type of
service through other agreements. If the actual number of schedules for
the month is not available, Western will estimate the number of
schedules for the month and apply the $38.22 per schedule charge to the
estimated number of schedules.
The table below depicts the VR customers charge per schedule for
the effective rate period.
Variable Resource Customers Effective Rate Per Schedule
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2012 2013 2014 2015 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
VR Charge Per Schedule............................................. $38.22 $39.36 $40.54 $41.76 $43.01
--------------------------------------------------------------------------------------------------------------------------------------------------------
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed through directly to the
relevant customer in the same manner Western is charged or credited,
the charges or credits will be passed through using Component 1 of the
formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant
[[Page 133]]
customer in the same manner Western is charged or credited to the
extent possible. If the HBA's costs or credits cannot be passed through
to the relevant customer in the same manner Western is charged or
credited, the charges or credits will be passed through using Component
1 of the formula rate.
Billing: Billing for CPP and VR customers' scheduling charge occurs
monthly using the formula rate.
Adjustments for Losses: All losses incurred for delivery of CPP
under this rate schedule shall be the responsibility of the customer
that has contracted for this service.
Adjustment for Audit Adjustments: Financial audit adjustments that
apply to the RR under this rate schedule will be evaluated on a case-
by-case basis to determine the appropriate treatment for repayment and
cash flow management.
Rate Comparison
Effective October 1, 2011, the CPP cost recovery is not changing
from the existing methodology and remains 100 percent pass through
under this rate schedule.
Under the proposed formula rate, Component 1, the VR customer's
scheduling charge is adjusted to $38.22 per schedule. This is a 23-
percent increase from the January 1, 2005, VR customer's charge of
$31.07 per schedule. This increase is based on a percentage change in
O&M from the 2005 rate case through FY 2010. The FY 2013 VR customer's
charge increases 3 percent each year through FY 2016 to reflect
inflationary increases. The rate increase is due to inflationary costs
not a rate methodology change.
Rate Recovery and Application
The CPP cost recovery methodology is not changing and remains 100
percent pass through under this rate schedule. The formula rate for CPP
applies to power supplied by Western to meet a customer's load. The VR
customer charge is to recover Western's cost for scheduling VR
customer's CPP service.
Proposed Formula Rate for CVP Transmission
Proposed Rate Schedule CV-T3 (Supersedes CV-T2)
Central Valley Project; Schedule of Rate for Firm and Non-Firm Point-
to-Point Transmission Service
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by SNR.
Applicable: To customers receiving CVP firm and/or non-firm point-
to-point transmission service.
Character and Conditions of Service
Transmission service for three-phase, alternating current at 60
hertz, delivered and metered at the voltages and points of delivery or
receipt, adjusted for losses, and delivered to points of delivery. This
service includes scheduling and system control and dispatch service
needed to support the transmission service.
Formula Rate: The formula rate for CVP firm and non-firm point-to-
point transmission includes three components:
Component 1:
[GRAPHIC] [TIFF OMITTED] TN03JA11.025
Where:
CVP TRR = Transmission Revenue Requirement (TRR) is the cost
associated with facilities that support the transfer capability of
the CVP transmission system excluding generation facilities and
radial lines.
TTc = The Total Transmission Capacity is the total transmission
capacity under long-term contract between Western and other parties.
NITSc = The Network Integration Transmission Service Capacity is the
12-month average coincident peaks of Network Integrated Transmission
Service (NITS) customers at the time of the monthly CVP transmission
system peak. For rate design purposes, Western's use of the
transmission system to meet its statutory obligations is treated as
NITS.
Western may revise the rate from Component 1 based on either of the
following conditions: (1) Updated financial data available in March of
each year; or (2) a change in the numerator or denominator that results
in a rate change of at least $0.05 per kilowatt month (kWmonth). Rate
change notifications will be posted on Western's Open Access Same-Time
Information System (OASIS).
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed through directly to the
relevant customer in the same manner Western is charged or credited,
the charges or credits will be passed through using Component 1 of the
formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant customer in the same manner Western is charged or credited to
the extent possible. If the HBA's costs or credits cannot be passed
through to the relevant customer in the same manner Western is charged
or credited, the charges or credits will be passed through using
Component 1 of the formula rate.
Billing: The formula rate above applies to the maximum amount of
capacity reserved for periods ranging from 1 hour to 1 month, payable
whether used or not. Billing will occur monthly.
Adjustment for Losses: Losses incurred for service under this rate
schedule will be accounted for as agreed to by the parties in
accordance with the service agreements.
Adjustment for Audit Adjustments: Financial audit adjustments that
apply to the RR under this rate schedule will be evaluated on a case-
by-case basis to determine the appropriate treatment for repayment and
cash flow management.
Rate Comparison
Under the proposed formula rate, Component 1, the estimated firm
and non-firm point-to-point rate effective October 1, 2011, is $1.32
per kWmonth. This is a 22-percent increase from the October 1, 2010,
CVP firm and non-firm point-to-point rate of $1.08 per kWmonth. The
rate increase is due to the anticipated completion of assets supporting
the transmission function not a rate methodology change.
Rate Recovery and Application
The formula rate for CVP transmission service is based on a RR that
recovers: (1) The CVP transmission system costs for facilities
associated with providing transmission service; (2) the non-facility
costs allocated to transmission service; (3) costs include O&M costs,
cost of capital or interest expense, depreciation expense, and other
miscellaneous costs; (4) the cost for transmission scheduling, system
control and dispatch service is included in O&M; (5) the pass through
of FERC's or other regulatory body's accepted or approved charges or
credits; (6) the pass through of the HBA's charges or credits; (7) any
other statutorily-required costs or charges; and (8) any other costs
associated with transmission service including uncollectible debt.
Revenues from the sales of short-term, non-firm transmission will
offset the TRR.
[[Page 134]]
Revenue from unreserved use of transmission penalties exceeding
transmission service cost will be applied as an offset to the TRR.
The formula rate applies to CVP firm point-to-point transmission
service, existing CVP firm pre-Open Access Transmission Tariff (OATT)
transmission service, and CVP non-firm transmission service. The
estimated rates resulting from the formula rate are subject to change
prior to the rates taking effect. The rates will be finalized by
Western on or before October 1, 2011.
Proposed Rate Schedule CV-NWT5 (Supersedes Schedule CV-NWT4)
Proposed Formula Rate for CVP NITS
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by SNR.
Applicable: To customers receiving CVP NITS.
Character and Conditions of Service: Transmission service for
three-phase, alternating current at 60 hertz, delivered and metered at
the voltages and points of delivery or receipt, adjusted for losses,
and delivered to points of delivery. This service includes scheduling
and system control and dispatch service needed to support the
transmission service.
Formula Rate: The formula rate for CVP NITS includes three
components:
Component 1: The NITS RR is the result of the CVP TRR less the CVP
firm point-to-point TRR. Each NITS customer's allocation is based on
the following formula:
NITS customer's monthly demand charge = NITS customer's load ratio
share times one-twelfth (\1/12\) of the Annual Network TRR.
Where:
NITS customer's load ratio share = The NITS customer's usage, hourly
or in accordance with approved policies or procedures, (including
behind the meter generation minus the NITS customer's adjusted BR)
coincident with the monthly CVP transmission system peak, averaged
over a 12-month rolling period.
Annual Network TRR = The total CVP TRR, less revenues from long-term
contracts for the CVP transmission between Western and other
parties.
The Annual Network TRR will be revised when the rate from Component
1 of the CVP transmission rate under Rates Schedule CV-T3 is revised.
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed through directly to the
relevant customer in the same manner Western is charged or credited,
the charges or credits will be passed through using Component 1 of the
formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant customer in the same manner Western is charged or credited to
the extent possible. If the HBA's costs or credits cannot be passed
through to the relevant customer in the same manner Western is charged
or credited, the charges or credits will be passed through using
Component 1 of the formula rate.
Rate Comparison
Effective October 1, 2011, the estimated monthly NITS RR is
$2,237,158. This rate is a 23-percent increase from the October 1,
2010, monthly NITS RR of $1,824,170. The rate increase is due to the
anticipated completion of assets supporting the CVP transmission
function not a rate methodology change.
The formula rate applies to CVP NITS. The estimated NITS monthly
RR, resulting from the formula rate, may change prior to the rates
taking effect based on the final CVP TRR. The NITS monthly RR will be
finalized by Western on or before October 1, 2011.
Rate Recovery and Application
The formula rate for CVP NITS is based on a RR that recovers: (1)
The CVP transmission system costs for facilities associated with
providing transmission service; (2) the non-facility costs allocated to
transmission service; (3) costs include O&M cost, cost of capital or
interest expense, depreciation expense, and other miscellaneous costs;
(4) the cost for transmission scheduling, system control and dispatch;
(5) the pass through of FERC's or other regulatory body's accepted or
approved charges or credits; (6) the pass through of the HBA's charges
or credits; (7) any other statutorily-required costs or charges; and
(8) any other costs associated with transmission service including
uncollectible debt. Revenues from the sales of short-term, non-firm
transmission will offset the TRR. Revenue exceeding cost from
unreserved use of transmission penalties will also be applied as an
offset to the TRR.
The formula rate applies to CVP NITS transmission service. The
estimated rates resulting from the formula rate are subject to change
prior to the rates taking effect. The rates will be finalized by
Western on or before October 1, 2011.
Proposed Rate Schedule COTP-T3 (Supersedes Schedule COTP-T2)
Formula Rate for COTP Point-to-Point Transmission Service
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by SNR.
Applicable: To customers receiving COTP firm and/or non-firm point-
to-point transmission service.
Character and Conditions of Service: Transmission service for
three-phase, alternating current at 60 hertz, delivered and metered at
the voltages and points of delivery or receipt, adjusted for losses,
and delivered to points of delivery. This service includes scheduling
and system control and dispatch service needed to support the
transmission service.
Formula Rate: The formula rate for COTP firm and non-firm point-to-
point transmission service includes three components:
Component 1:
[GRAPHIC] [TIFF OMITTED] TN03JA11.026
Where:
COTP TRR = COTP Seasonal TRR (Western's costs associated with
facilities that support the transfer capability of the COTP).
Western's COTP Seasonal Capacity =
[[Page 135]]
Western's share of COTP capacity (subject to curtailment) under the
current COI transfer capability for the season. The three seasons
are defined as follows: Summer--June through October; Winter--
November through March; and Spring--April through May.
Western will update the formula rate from Component 1 for COTP firm
and non-firm point-to-point transmission service at least 15 days
before the start of each COI rating season. Rate change notifications
will be posted on the OASIS Web site.
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed through directly to the
relevant customer in the same manner Western is charged or credited,
the charges or credits will be passed through using Component 1 of the
formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant customer in the same manner Western is charged or credited to
the extent possible. If the HBA's costs or credits cannot be passed
through to the relevant customer in the same manner Western is charged
or credited, the charges or credits will be passed through using
Component 1 of the formula rate.
Rate Comparison
A comparison of the estimated rates resulting from Component 1 of
the proposed formula rate for COTP firm point-to-point transmission
service to the existing COTP firm point-to-point transmission service
rates are shown in the table below.
Table--Comparison of Existing Rates to Estimated Rates From the Proposed Formula Rate for COTP Firm and Non-Firm
Point-to-Point Transmission Service
----------------------------------------------------------------------------------------------------------------
Estimated rates
Season Existing rates from proposed Percent
formula rate increase
----------------------------------------------------------------------------------------------------------------
Spring....................................... $2.74 $/MWh......................... $2.80 $/MWh 1.02
Summer....................................... $2.73 $/MWh......................... $2.79 $/MWh 1.02
Winter....................................... $2.77 $/MWh......................... $2.83 $/MWh 1.02
----------------------------------------------------------------------------------------------------------------
The estimated firm point-to-point COTP transmission service rate
increased primarily due to an inflationary increase of costs not a rate
methodology change.
Rate Recovery and Application
The proposed formula rate for COTP firm and non-firm point-to-point
transmission service is based on a RR that recovers: (1) The COTP
transmission system costs for facilities associated with providing
transmission service; (2) the non-facility costs allocated to
transmission service; (3) the cost of scheduling system control and
dispatch service associated with COTP transmission; (4) the pass
through of FERC's or other regulatory body's accepted or approved
charges or credits; (5) the pass through of the HBA's charges or
credits; (6) any other statutorily-required costs or charges; and (7)
any other costs associated with transmission service including
uncollectible debt.
The proposed firm and non-firm formula rate includes Western's cost
for transmission scheduling, and system control and dispatch service
associated with COTP transmission. The proposed formula rate applies to
COTP point-to-point transmission service. The rates resulting from
Component 1 of the proposed formula rate may be discounted for short-
term sales and revenue from COTP unreserved use penalties.
The estimated rates resulting from the proposed formula rate are
subject to change prior to the rates taking effect. The rates resulting
from the proposed formula rate for the winter season will be finalized
by Western on or before October 15, 2011.
Proposed Rate Schedule PACI-T3 (Supersedes Schedule PACI-T2)
Proposed Formula Rate for PACI Point-to-Point Transmission Service
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by SNR.
Applicable: To customers receiving PACI firm and/or non-firm point-
to-point transmission service.
Character and Conditions of Service: Transmission service for
three-phase, alternating current at 60 hertz, delivered and metered at
the voltages and points of delivery or receipt, adjusted for losses,
and delivered to points of delivery. This service includes scheduling
and system control and dispatch service needed to support the
transmission service.
Formula Rate: The proposed formula rate for PACI firm and non-firm
transmission includes three components:
Component 1:
[GRAPHIC] [TIFF OMITTED] TN03JA11.027
Where:
PACI TRR = PACI Seasonal TRR includes Western's costs associated
with facilities that support the transfer capability of the PACI.
Western's PACI Seasonal Capacity = Western's share of PACI capacity
(subject to curtailment) under the current COI transfer capability
for the season. The three seasons are defined as follows: Summer--
June through October; Winter--November through March; and Spring--
April through May.
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Western will update the formula rate resulting from Component 1 at
least 15 days before the start of each COI rating season. Rate change
notifications will be posted on the OASIS.
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed through directly to the
relevant customer in the same manner Western is charged or credited,
the charges or credits will be passed through using Component 1 of the
formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant customer in the same manner Western is charged or credited to
the extent possible. If the HBA's costs or credits cannot be passed
through to the relevant customer in the same manner Western is charged
or credited, the charges or credits will be passed through using
Component 1 of the formula rate.
The proposed formula rate for PACI non-firm transmission includes
the same three components used in the proposed formula rate for PACI
firm transmission.
Rate Comparison
The estimated firm and non-firm point-to-point rates resulting from
Component 1 of the proposed formula rate for PACI transmission service
are shown in the example below.
Example--Comparison of Existing Rates to Estimated Rates of the Proposed Formula Rate for PACI Firm and Non-Firm
Point-To-Point Transmission Service
----------------------------------------------------------------------------------------------------------------
Estimated firm Rate change
Season Existing firm rate rate (percent)
----------------------------------------------------------------------------------------------------------------
Spring.............................. $1.14 ($/MWh)....................... $1.16 ($/MWh) 1.02
Summer.............................. $1.13 ($/MWh)....................... $1.16 ($/MWh) 1.02
Winter.............................. $1.15 ($/MWh)....................... $1.17 ($/MWh) 1.02
----------------------------------------------------------------------------------------------------------------
The estimated firm, point-to-point PACI transmission service rate
increased slightly due to an inflationary increase of costs not a rate
methodology change.
Rate Recovery and Application
The proposed formula rate for PACI transmission service is based on
a RR that recovers: (1) The PACI transmission system costs for
facilities associated with providing transmission service; (2) the non-
facility costs allocated to transmission service; (3) the pass through
of FERC's or other regulatory body's accepted or approved charges or
credits; (4) the pass through of the HBA's charges or credits; (5) any
other statutorily-required costs or charges; and (6) any other costs
associated with transmission service including uncollectible debt.
The proposed formula rate includes Western's cost for transmission
scheduling, system control and dispatch service. The proposed formula
rate applies to PACI firm and non-firm point-to-point transmission
service. The rates resulting from Component 1 of the proposed formula
rate may be discounted for short-term sales and revenue from PACI
unreserved use penalties. The estimated rates resulting from the
proposed formula rate are subject to change prior to the rates taking
effect. The rates resulting from the proposed formula rate for the
winter season will be finalized by Western on or before October 15,
2011.
Proposed Rate Schedule CV-TPT7 (Supersedes CV-TPT6)
Schedule of Rate for Transmission of Western Power by Others
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by SNR.
Applicable: To Western's power service customers who require
transmission service by a third party to receive power sold by Western.
Character and Conditions of Service: Transmission service for
three-phase, alternating current at 60 hertz, delivered and metered at
the voltages and points of delivery or receipt, adjusted for losses,
and delivered to points as agreed to by the parties.
Formula Rate: The proposed formula rate for transmission of
Western's power by others includes three components.
Component 1: When Western uses transmission facilities other than
its own in supplying Western power and costs are incurred by Western
for the use of such facilities, the customer will pay all costs,
including transmission losses, incurred in the delivery of such power.
Component 2: Any charges or credits associated with the creation,
termination, or modification to any tariff, contract, or rate schedule
accepted or approved by FERC or other regulatory body will be passed on
to each relevant customer. The FERC's or other regulatory body's
accepted or approved charges or credits apply to the service to which
this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory body's
accepted or approved charges or credits in the same manner Western is
charged or credited. If FERC's or other regulatory body's accepted or
approved charges or credits cannot be passed through directly to the
relevant customer in the same manner Western is charged or credited,
the charges or credits will be passed through using Component 1 of the
formula rate.
Component 3: Any charges or credits from the HBA applied to Western
for providing this service will be passed through directly to the
relevant customer in the same manner Western is charged or credited to
the extent possible. If the HBA's costs or credits cannot be passed
through to the relevant customer in the same manner Western is charged
or credited, the charges or credits will be passed through using
Component 1 of the formula rate.
Billing: Third-party transmission will be billed monthly under the
formula rate.
Adjustments for losses: All losses incurred for delivery of power
under this rate schedule shall be the responsibility of the customer
that received the power.
Adjustment for Audit Adjustments: Financial audit adjustments that
apply to the RR under this rate schedule will be evaluated on a case-
by-case basis to
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determine the appropriate treatment for repayment and cash flow
management.
Rate Comparison
Effective October 1, 2011, the cost of this service is not changing
from the existing methodology and all costs are pass through under this
rate schedule.
Rate Recovery and Application
These costs are fully recovered from the beneficiaries receiving
this service, and this is not changing from the existing rate
methodology.
Proposed Rate Schedule CV-UUP1 (New Rate Schedule)
Schedule of Rate for Unreserved Use Penalties
Effective: October 1, 2011, through September 30, 2016.
Available: Within the marketing area served by SNR.
Applicable: To transmission customers using transmission not
reserved or in excess of reservation.
Character and Conditions of Service: Transmission service for
three-phase, alternating current at 60 hertz, delivered and metered at
the voltages and points of delivery or receipt, adjusted for losses,
and delivered to points of delivery. This service includes scheduling
and system control and dispatch service needed to support the
transmission service.
Summary
Western proposes to add a penalty rate for unreserved use of
transmission for the CVP, COTP, and PACI in a new rate schedule, Rate
Schedule CV-UUP1.
Penalty Rate
The rate for Unreserved Use Penalties service is 150 percent of the
approved transmission service rate for point-to-point transmission
service assessed as described above, plus 100 percent of the approved
ancillary service rates if applicable.
Component 1: Unreserved Use Penalties service is provided when a
transmission customer uses transmission service that it has not
reserved or uses transmission service in excess of its reserved
capacity. A transmission customer that has not secured r
