Notice of Interim Approval, 58790-58803 [2011-24224]
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Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
On October 14, 2011, starting at 8:30
a.m., the Board will approve the agenda
and hear remarks from the chair, Jon
Baron. John Easton, IES Director, will
introduce Deborah Speece, the newly
appointed Commissioner of the National
Center for Special Education Research.
The Commissioners of the national
centers will give an overview of recent
developments at IES. From 9:30 to 10:45
a.m., Board members will consider the
topic of ‘‘Peer Review of Research
Proposals: The IES approach, and
possible refinements to increase
findings of policy importance.’’ Opening
remarks by Anne Ricciuti, the IES
Deputy Director for Science, will be
followed by Board discussion. A break
will take place from 10:45 to 11:00 a.m.
From 11:00 a.m. to 12:00 noon, the
Board will take up the topic, ‘‘The
Administration’s ‘Tiered’ Evidence
Initiatives in Education and Other
Areas.’’ Following a brief presentation
by Kathy Stack, Deputy Associate
Director for Education and Human
Resources, Office of Management and
Budget, Board members will engage in
a roundtable discussion of the issues
raised by the presentation. The meeting
will break for lunch from 12:00 to 1:00
p.m.
Following lunch the Board will turn
to the topic, ‘‘The Congressionallyestablished Committee on Science,
Technology, Engineering and Math
Education (CoSTEM)’’ from 1:00 to 2:00
p.m. After opening remarks by Carl
Wieman, Associate Director for Science
at the White House Office of Science
and Technology Policy, and Co-Chair of
CoSTEM, the Board will discuss the
issues raised.
Next, from 2:00 to 3:20 p.m., the
Board will address ‘‘Continuous
Improvement Research: Is it a path for
achieving program effectiveness in
large-scale implementation?’’ Following
opening remarks by Gilbert Botvin of
Weill Cornell Medical College and
Anthony Bryk, an NBES member and
President of the Carnegie Foundation for
the Advancement of Teaching, the
Board will engage in roundtable
discussion.
An afternoon break from 3:20 to 3:30
p.m. will precede a discussion of ‘‘NBES
Annual Reports’’ from 3:30 to 4:10 p.m.
Monica Herk, NBES’s Executive
Director, will kickoff the discussion by
laying out the statutory requirements for
the annual report and describing how
they have been produced in the past.
Her remarks will be followed by Board
discussion.
From 4:10 to 4:40 p.m., the Board will
elect Board leaders. At approximately
4:40 p.m., there will be closing remarks
and a consideration of next steps from
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the IES Director and NBES Chair, with
adjournment scheduled for 5:00 p.m.
Individuals who will need
accommodations for a disability in order
to attend the meeting (e.g., interpreting
services, assistance listening devices, or
materials in alternative format) should
notify Monica Herk no later than
September 30. We will attempt to meet
requests for accommodations after this
date but cannot guarantee their
availability. The meeting site is
accessible to individuals with
disabilities.
There will not be an opportunity for
public comment. However, members of
the public are encouraged to submit
written comments related to NBES to
Monica Herk (see contact information
above). A final agenda will be available
from Monica Herk (see contact
information above) on September 30
and will be posted on the Board Web
site: https://ies.ed.gov/director/board/
agendas/index.asp.
Records are kept of all Committee
proceedings and are available for public
inspection at 555 New Jersey Ave., NW.,
Room 602 K, Washington, DC 20208,
from the hours of 9 a.m. to 5 p.m.,
Eastern Time Monday through Friday.
Electronic Access to This Document:
You may view this document, as well as
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text or Adobe Portable Document
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Note: The official version of this document
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edition of the Federal Register and the Code
of Federal Regulations is available on GPO
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index.html.
John Q. Easton,
Director, Institute of Education Sciences.
[FR Doc. 2011–24409 Filed 9–21–11; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF ENERGY
Notice of Interim Approval
Southeastern Power
Administration, DOE.
ACTION: Notice of interim approval for
Southeastern Power Administration
Cumberland System.
AGENCY:
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The Deputy Secretary of
Energy confirmed and approved, on an
interim basis, Rate Schedules CBR–1–H,
CSI–1–H, CEK–1–H, CM–1–H, CC–1–I,
CK–1–H, CTV–1–H, CTVI–1–A, and
Replacement-3. The rates were
approved on an interim basis through
September 30, 2013. The new rates take
effect on October 1, 2011, and are
subject to confirmation and approval on
a final basis by the Federal Energy
Regulatory Commission (Commission).
DATES: Approval of the rate schedules
on an interim basis is effective October
1, 2011, through September 30, 2013.
FOR FURTHER INFORMATION CONTACT:
Virgil G. Hobbs, III, Assistant
Administrator, Finance & Marketing,
Southeastern Power Administration,
Department of Energy, 1166 Athens
Tech Road, Elberton, Georgia 30635–
6711, (706) 213–3800.
SUPPLEMENTARY INFORMATION: On May 6,
2009, the Commission confirmed and
approved on a final basis Wholesale
Power Rate Schedules CBR–1–G, CSI–1–
G, CEK–1–G, CM–1–G, CC–1–H, CK–1–
G, and CTV–1–G for the period from
October 1, 2008, to September 30, 2013
(127 FERC ¶ 62,115). Rate Schedule
CTVI–1 was approved by the
Administrator, Southeastern Power
Administration, for a period ending
September 30, 2013.
The power marketing policy provides
peaking capacity, along with 1500 hours
of energy with each kilowatt of capacity,
to customers outside the Tennessee
Valley Authority (TVA) transmission
system. Due to restrictions on the
operations of the Wolf Creek and Center
Hill Projects imposed by the U.S. Army
Corps of Engineers (Corps) as a
precaution to prevent failure of the dam,
Southeastern has not been able to
provide peaking capacity to these
customers. An interim operating plan
for the Cumberland System provides
these customers with energy that does
not include capacity.
A current repayment study using
present rates shows that revenues will
not be adequate to meet repayment
criteria. A revised study with a revenue
requirement increase of $9,570,000, or
about eighteen percent, shows that these
rates will be adequate to meet
repayment criteria. Because the
estimated annual energy delivered to
the customers has been reduced, the rate
increase under the interim operating
plan is about 40 percent.
The rate schedules have been
developed to cover the differing
marketing arrangements in the
Cumberland System under normal
operation conditions. The Rate
Schedules CBR–1–H, CSI–1–H, and
SUMMARY:
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CM–1–H, include rates for customers
who receive 1500 kilowatt-hours of
energy annually for each kilowatt of
capacity. The transmission and
scheduling arrangements under each of
these rate schedules are different. Rate
Schedule CEK–1–H is for East Kentucky
Power Cooperative, which receives a
fixed quantity of energy annually from
projects connected to the TVA
transmission system plus the output of
the Laurel Project. Rate Schedule CK–1–
H is for customers in Kentucky who
receive 1800 kilowatt-hours of energy
annually for each kilowatt of capacity.
Rate Schedule CC–1–I is for customers
on the Carolina Power & Light Western
Division, (or Progress Energy Carolinas
Western Division).
Rate Schedule CTV–1–H is for TVA
and TVPPA. Rate Schedule CTVI–1–A is
for customers inside the TVA system
who choose a power supplier other than
TVA.
Dated: September 12, 2011.
Daniel B. Poneman,
Deputy Secretary.
DEPARTMENT OF ENERGY
Deputy Secretary
[Rate Order No. SEPA–55]
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In the Matter of: Southeastern Power
Administration Cumberland System
Rates; Order Confirming and Approving
Power Rates on an Interim Basis
Pursuant to Sections 302(a) and
301(b) of the Department of Energy
Organization Act, Public Law 95–91, the
functions of the Secretary of the Interior
and the Federal Power Commission
under Section 5 of the Flood Control
Act of 1944, 16 U.S.C. 825s, relating to
the Southeastern Power Administration
(Southeastern or SEPA) were transferred
to and vested in the Secretary of Energy.
DOE Delegation Order No. 00–037.00,
issued on December 6, 2001, granted the
Deputy Secretary authority to confirm,
approve, and place into effect
Southeastern’s rates on an interim basis.
This rate order is issued by the Deputy
Secretary pursuant to this delegation.
Background
On May 9, 2009, the Commission
issued an order approving Rate
Schedules CBR–1–G, CSI–1–G, CEK–1–
G, CM–1–G, CC–1–H, CK–1–G, and
CTV–1–G on a final basis for the sale of
power from the Cumberland System
(127 FERC ¶ 62,115). The Administrator
of Southeastern Power Administration
approved Rate Schedule CTVI–1 for a
period ending September 30, 2013.
The power marketing policy provides
peaking capacity, along with 1500 hours
of energy with each kilowatt of capacity,
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to customers outside the Tennessee
Valley Authority (TVA) transmission
system. Due to restrictions on the
operations of the Wolf Creek and Center
Hill Projects imposed by the U.S. Army
Corps of Engineers (Corps) as a
precaution to prevent failure of the dam,
Southeastern has not been able to
provide peaking capacity to these
customers. An interim operating plan
for the Cumberland System provides
these customers with energy that does
not include capacity.
Public Notice and Comment
Notice of a proposed rate adjustment
was published in the Federal Register
March 7, 2011 (76 FR 12354). The notice
advised interested parties of a public
information and comment forum to be
held in Nashville, Tennessee on May 3,
2011. By notice published in the
Federal Register May 20, 2011 (76 FR
29235), Southeastern extended the
comment period to July 1, 2011. Written
comments were received from six
sources pursuant to this notice.
The comments have been condensed
into the following seven major
categories:
1. Replacement costs.
2. Average energy estimate/energy true-up.
3. Corps Operation and Maintenance (O&M).
4. Forced payments/repayment study
method.
5. Energy shaping.
6. Dam safety.
7. SEPA Rates versus Market Cost of Power.
Southeastern’s response follows each
comment.
Category 1: Replacement Costs
Comment: SEPA should remove
opportunity projects from projected
replacements. In future studies, only
those opportunity projects that are
approved by the Project Coordinating
Committee (PCC) for funding through
the Long-Term Memorandum of
Agreement (MOA) will be included in
capitalized investments. It is premature
to include opportunity projects in the
current study.
Comment: SEPA should consider
revising the cost for the 20-year
rehabilitation plan so that renewals are
completed over a 30-year period of time.
To account for the differences between
proposed and actual capital
expenditures, a true-up mechanism for
capital expenses could be implemented.
Comment: SEPA rates must be based
on a realistic estimate of replacement
costs actually expected to be incurred.
Response: Southeastern is required to
include estimates of replacements and
additions in the repayment study to
support the proposed rate schedules. As
a result of the comments received,
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Southeastern has removed the
opportunity projects from the plan of
replacements. Southeastern expects
future replacements and rehabilitation
of the Cumberland Projects will be
accomplished through customer
funding. Because the customers are
expected to control customer funding,
they are not expected to fund the
opportunity projects through the rate
adjustments established in this
document.
The proposed rate schedules are to be
effective for a two-year period, from
October 1, 2011 to September 30, 2013.
Any true-up mechanism incorporated
into the proposed rate schedules would
be implemented beyond the term of the
proposed rate schedules. As such, the
proposed rate schedules do not include
a true-up mechanism.
The rehabilitation plan for the
Cumberland System is expected to be
implemented over twenty years. It is
possible that the implementation of the
plan may extend to thirty years.
However, the proposed rate schedules
have been developed with the present
twenty-year plan of implementation, as
Southeastern considers this the best
estimate currently available.
Category 2: Average Energy Estimate/
Energy True-Up
Comment: SEPA should consider
revising the energy sales starting in the
year 2014 to 3,000,000 hours to account
for an improved generation due to head
improvements once Wolf Creek and
Center Hill project lake levels return to
normal.
Comment: Annual energy sales for
2009 and 2010 were 2,654,328 MWh
and 2,706,215 MWh respectively. In
addition, the Tennessee Valley
Authority (TVA) prepared an
independent estimate of 2,707,500 MWh
for energy sales in 2012 and 2013.
SEPA’s projected energy sales of
2,538,434 MWh are below actual energy
sales for 2009 and 2010 and are below
TVA’s estimate. We recommend SEPA
utilize TVA’s estimated energy sales of
2,707,500 MWh for 2012–14.
Comment: SEPA should not base the
proposed rate adjustment on an
arbitrarily determined annual system
generation amount.
Response: Based on the comments
received from the customers in the
Cumberland System, Southeastern has
revised the energy estimate used in the
repayment study. Based on the
continued Interim operations due to the
ongoing work at Wolf Creek and Center
Hill, Southeastern does not use normal
system generation for the term of the
Interim Operating Plan and the
development of rates under the Interim
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Operating Plan. Southeastern revised
the proposed rate under the interim
Operating Plan to include the energy
estimate determined in TVA’s energy
model. The primary difference between
the estimates was that the period of
record used by TVA is 24 years longer
than the period of record used by
Southeastern. This additional data
allows for multiple year of additional
river basin hydrology to be considered
when analyzing system operations and
in the determination of statistical
average generation for the system. Both
the TVA model and Southeastern’s
records are comprised of actual project
generation averaged over the respective
periods of record. The TVA model also
includes reductions at Wolf Creek and
Center Hill.
Category 3: Corps O&M Costs
Comment: Corps O&M expenses
included in the repayment study should
be verified in a detailed accounting.
Comment: SEPA should conduct a
more intensive study and analysis of the
Corps’ request for increased revenues,
and engage in collaboration with the
Corps to make further introspective
study and analysis of the scope and
need of the Corps’ request. SEPA and
the Corps through a collaborative effort
can help ameliorate the extreme impact
of SEPA’s proposed rate increase by
both using more aggressive cost controls
and applying the correct accounting
procedures to capital expenditures as
capital assets, thus amortizing those
over the life of the cost-effective
improvements to the Corps’ facilities.
This approach is used in private sector
accounting principles for capital
additions.
Comment: SEPA should reexamine
Corps operation and maintenance
(‘‘O&M’’) cost because these costs are
projected to be higher than a realistic
forecast would indicate.
Response: Southeastern recognizes
that the customers have an interest in
the maintenance and operation
expenses and funding of the
Cumberland Projects. Southeastern
shares the customers concern over the
estimated Corps O&M expense included
in the repayment study to support the
proposed rate schedules. The estimates
used to develop the current rate
schedules in the Cumberland System
were about 33 percent lower than the
actual costs incurred. The estimates
used to develop the proposed rate
schedules were provided to
Southeastern and the customers in April
of 2010. Any variance of the actual costs
incurred from these estimates will
impact repayment of the federal
investment and will be accounted for in
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the next rate adjustment. Southeastern
will work in collaboration with the
Corps, the customers, and the O&M
Committee to ensure that operation and
maintenance is properly funded and
charged consistent with generally
accepted accounting principles.
Category 4: Forced Payments/
Repayment Study Method
Comment: Following sound business
principles would dictate that a revenue
requirement for the last two years of a
50-year repayment study should not be
driven by pinch points in years 49 and
50 of the study.
Comment: SEPA should consider
spreading out forced payments for the
Barkley and Cordell Hull projects over
multiple years to reduce the required
payments of these two projects in the
years 2016 and 2024 respectively.
Comment: SEPA should revisit its
ratemaking methodology to reflect a
more common practice of meeting
future revenue requirements through a
series of rate adjustments versus a onetime rate adjustment for the entire study
period.
Comment: Utilizing a series of rate
adjustments will more accurately reflect
the change in river operations that will
occur after force majeure conditions are
lifted in 2014 or 2015.
Comment: Instead of a single rate
adjustment to meet a 50-year study
period, three rate adjustments should be
made to meet increasing revenue
requirements in future years.
Comment: Forced payments for
Barkley and Cordell Hull should be
added to the repayment study if they
will result in lower rates for 2012 and
2013 (e.g. two years of forced payments
prior to the Barkley required payment in
2016, and five years of forced payments
prior to the Cordell Hull required
payment in 2024).
Response: The methodology the
power marketing administrations are
required to use is set forth in DOE Order
RA 6120.2. It describes, among other
things, the highest interest first method
of amortization. Section 8c.(3) of the
Order describes the priority of revenue
application.
The power marketing administrations
adopted highest interest bearing first
amortization method because it resulted
in the lowest possible rates. Under this
method, annual revenues are applied
first to operating expenses and interest.
Remaining revenues are then applied
first to any deferred or unpaid annual
expense, and then to the Federal
investment. To the extent possible,
while still complying with the
repayment periods established for each
increment of investment, amortization is
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accomplished by application to the
highest interest-bearing investment first.
Southeastern is not required to make
any payments until the year that an
investment is due for repayment.
Southeastern includes early, or
‘‘forced,’’ payments in a repayment
study to override the normal priority of
repayment and to comply with the
repayment period for the investment.
Revising the schedule of forced
payments as the customers have
requested would result in a slight,
though not material, increase in the
revenue requirement than the proposed
rate schedules were designed to recover.
This is caused by the increase in
expensed interest from the later
payment of high interest rate
investment.
Section 7 b. of DOE Order RA6120.2
defines the ‘‘Cost Evaluation Period’’ for
the repayment study. The Cost
Evaluation Period is the period of time
during which estimates of future costs
and revenues may be modified to reflect
changing conditions. For these proposed
rate schedules, the cost evaluation
period is two years, fiscal year 2012 and
fiscal year 2013. Any changes to the
rates or estimates outside the cost
evaluation period, as commenters have
requested, are not permitted under DOE
Order RA6120.2.
Category 5: Energy Shaping
Comment: While this is not expected
to change over the next two years, the
affected Customers would encourage
SEPA to take steps to work with the
Corps to encourage ‘‘shaping’’ of the
available resource to provide delivery at
times when energy markets recognize
higher demand. This step alone would
increase the value of the energy-only
resource that is currently available from
the Cumberland River basin Corps
projects.
Comment: SEPA should press the
Corps for increased coordination of
stream flow water management and runof-river energy scheduling to provide
more on-peak energy and less off-peak
energy to the extent possible.
Response: Because of the loss of
storage operations at the Wolf Creek and
Center Hill Projects Southeastern is
unable to provide peaking operations for
the Cumberland Projects. This is
expected to continue until the
rehabilitation work is complete and the
reservoirs have refilled. Southeastern
will work with the Corps to provide
more on-peak energy and less off-peak
energy to the extent feasible.
Category 6: Dam Safety
Comment: The customers want to
express their concern that the seepage
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repair costs for Wolf Creek and Center
Hill as currently classified would
present another rate hurdle.
Comment: Proper classification of
costs for dam safety repairs at Wolf
Creek and Center Hill is a significant
concern for SEPA hydropower
customers. Currently, combined costs
for these two projects are expected to be
over $850 million, and, if not properly
classified under provisions of the Dam
Safety Act, will result in a significant
rate increase for hydropower. This
creates a significant concern that SEPA
rates may become non-competitive with
other energy resources available to
SEPA’s customers. Indeed, the proposed
rates are already uneconomical at times
over the next two-year time period. To
protect the viability of the federal power
program, SEPA should fully exercise its
authority under the Flood Control Act of
1944 to develop the lowest possible
rates to consumers consistent with
sound business principles.
Comment: With the projected
recovery of the investment needed to
complete the projects in the Master Plan
and potential inclusion of the costs
related to the dam safety repairs at the
Wolf Creek and Center Hill Projects, the
affected customers recognize that the
cost of the SEPA resource may soon
become uneconomical.
Comment: The expenditures for
repairs at the Wolf Creek and Center
Hill Dam Projects should be classified as
a dam safety project and therefore
subject to reimbursement rates in
accordance with the Dam Safety Act
(Section 1203 of the WRDA 1986) rather
than as maintenance costs.
Response: The rehabilitation work at
the Wolf Creek and Center Hill Projects
is currently expected to be complete in
fiscal year 2014, which is beyond the
two-year term of these proposed rate
schedules. The cost associated with this
rehabilitation work is not included with
this rate adjustment.
Southeastern expects to receive from
the Corps reports on the cost of the
rehabilitation work that the Corps has
determined should be allocated to
power for cost recovery. After
Southeastern has received these reports,
Southeastern will develop proposed rate
schedules to recover the costs.
Category 7: SEPA Rates Versus Market
Cost of Power
Comment: If SEPA is seeking to
recover from the additional funds
required to pay for the dam safety
repairs, the cost of power will likely
exceed prevailing market rates. If this
occurs, there’s some speculation that
some customers will relinquish their
SEPA allocations. In light of this
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potential scenario, has SEPA performed
any modeling to calculate how costs
will be recovered if the customer base
continues to shrink?
Comment: In the instance that the
eventual rate does exceed market rates,
is there anything that would prevent
SEPA from considering the option of
exercising its authority under the Flood
Control Act to ensure that the rates
remain the lowest possible consistent
with sound business principles?
Response: The provisions of section 5
of the Flood Control Act of 1944 require
that Southeastern’s ‘‘Rate Schedules
shall be drawn having regard to the
recovery (upon the basis of the
application of such rate schedules to the
capacity of the electric facilities of the
projects) of the cost of producing and
transmitting such electric energy,
including the amortization of the capital
investment allocated to power over a
reasonable period of years.’’ As such,
Southeastern is required to develop and
propose rate schedules that recover the
cost. If such rates prove to be above
market, Southeastern will make a
determination of the appropriate steps
necessary to market the power and meet
its repayment obligation.
Discussion
System Repayment
An examination of Southeastern’s
revised system power repayment study,
prepared in July, 2011, for the
Cumberland System, shows that with
the proposed rates, all system power
costs are paid within the 50-year
repayment period required by existing
law and DOE Order RA 6120.2. The
Administrator of Southeastern has
certified that the rates are consistent
with applicable law and that they are
the lowest possible rates to customers
consistent with sound business
principles.
Environmental Impact
Southeastern has reviewed the
possible environmental impacts of the
rate adjustment under consideration and
has concluded that, because the
adjusted rates would not significantly
affect the quality of the human
environment within the meaning of the
National Environmental Policy Act of
1969, the proposed action is not a major
Federal action for which preparation of
an Environmental Impact Statement is
required.
Availability of Information
Information regarding these rates,
including studies, and other supporting
materials, is available for public review
in the offices of Southeastern Power
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Administration, 1166 Athens Tech
Road, Elberton, Georgia 30635–6711.
Submission to the Federal Energy
Regulatory Commission
The rates hereinafter confirmed and
approved on an interim basis, together
with supporting documents, will be
submitted promptly to FERC for
confirmation and approval on a final
basis.
Order
In view of the foregoing and pursuant
to the authority delegated to me by the
Secretary of Energy, I hereby confirm
and approve on an interim basis,
effective October 1, 2011, attached
Wholesale Power Rate Schedules CBR–
1–H, CSI–1–H, CEK–1–H, CM–1–H, CC–
1–I, CK–1–H, CTV–1–H, CTVI–1–A, and
Replacement-3. The rate schedules shall
remain in effect on an interim basis
through September 30, 2013, unless
such period is extended or until FERC
confirms and approves them or
substitute rate schedules on a final
basis.
Dated: September 12, 2011.
Daniel B. Poneman,
Deputy Secretary.
Wholesale Power Rate Schedule
CBR–1–H
Availability:
This rate schedule shall be available
to Big Rivers Electric Corporation and
includes the City of Henderson,
Kentucky (hereinafter called the
Customer).
Applicability:
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of 60 hertz. The power shall
be delivered at nominal voltages of
13,800 volts and 161,000 volts to the
transmission system of Big Rivers
Electric Corporation.
Points of Delivery:
Capacity and energy delivered to the
Customer will be delivered at points of
interconnection of the Customer at the
Barkley Project Switchyard, at a
delivery point in the vicinity of the
Paradise steam plant and at such other
points of delivery as may hereafter be
agreed upon by the Government and
Tennessee Valley Authority (TVA).
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Billing Month:
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Conditions of Service:
The customer shall at its own expense
provide, install, and maintain on its side
of each delivery point the equipment
necessary to protect and control its own
system. In so doing, the installation,
adjustment, and setting of all such
control and protective equipment at or
near the point of delivery shall be
coordinated with that which is installed
by and at the expense of TVA on its side
of the delivery point.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
jlentini on DSK4TPTVN1PROD with NOTICES
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario 1 will remain
in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission:
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
Administration (Administrator)
provides to the TVA as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
Demand Charge:
$4.245 per kilowatt/month of total
contract demand.
Energy Charge:
None.
Energy to be Furnished by the
Government:
The Government shall make available
each contract year to the customer from
Percent
the Projects through the customer’s
Big Rivers Electric Corporation ....
32.660 interconnections with TVA and the
City of Henderson, Kentucky ........
2.202 customer will schedule and accept an
allocation of 1500 kilowatt-hours of
Energy to be Furnished by the
energy delivered at the TVA border for
Government:
each kilowatt of contract demand. A
The Customer will receive a ratable
contract year is defined as the 12
share of the energy made available by
months beginning July 1 and ending at
the Nashville District of the U.S. Army
midnight June 30 of the following
Corps of Engineers.
calendar year. The energy made
Rate Scenario 2—Cost Recovered From available for a contract year shall be
scheduled monthly such that the
Capacity and Energy
maximum amount scheduled in any
This rate alternative will be
month shall not exceed 240 hours per
implemented if a portion of the
Cumberland Capacity can be scheduled, kilowatt of the customer’s contract
demand and the minimum amount
though not all the capacity in the
scheduled in any month shall not be
published marketing policy can be
less than 60 hours per kilowatt of the
scheduled. The revenue requirement
customer’s contract demand. The
under this alternative is $59,600,000,
customer may request and the
the same as the revenue requirement in
Government may approve energy
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that scheduled for a month greater than 240
hours per kilowatt of the customer’s
can be scheduled and the remainder
contract demand; provided, that the
from energy, at charges that will be
combined schedule of all Southeastern
determined at the time. Under Scenario
customers outside TVA and served by
2, the cost of the TVA transmission
TVA does not exceed 240 hours per
credit will be passed to customers
kilowatt of the total contract demands of
outside the TVA System. This rate
these customers.
alternative will be in effect when the
Corps modifies operation of the Wolf
Service Interruption:
Creek Project and the Center Hill Project
When delivery of capacity is
to allow some of the capacity scheduled. interrupted or reduced due to
When the lake level rises and capacity
conditions on the Administrator’s
is available, the capacity will be
system beyond his control, the
allocated on an interim basis to the
Administrator will continue to make
customers.
available the portion of his declaration
Rate Scenario 3—Original Cumberland of energy that can be generated with the
capacity available.
Marketing Policy
For such interruption or reduction
The third rate alternative will go into
effect once the Corps lifts all restrictions due to conditions on the
on the operation of the Wolf Creek Dam Administrator’s system which have not
been arranged for and agreed to in
and Center Hill Dam and Southeastern
advance, the demand charge for
returns to operations that support the
capacity made available will be reduced
published marketing policy.
as to the kilowatts of such capacity
Monthly Rate:
The monthly rate for capacity and
which have been interrupted or reduced
energy sold under this rate schedule
in accordance with the following
shall be:
formula:
PO 00000
Frm 00028
Fmt 4703
Sfmt 4725
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22SEN1
EN22SE11.000</GPH>
58794
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
jlentini on DSK4TPTVN1PROD with NOTICES
Wholesale Power Rate Schedule
CSI–1–H
Availability:
This rate schedule shall be available
to Southern Illinois Power Cooperative
(hereinafter the Customer).
Applicability:
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of 60 hertz. The power shall
be delivered at nominal voltages of
13,800 volts and 161,000 volts to the
transmission system of Big Rivers
Electric Corporation.
Points of Delivery:
Capacity and energy delivered to the
Customer will be delivered at points of
interconnection of the Customer at the
Barkley Project Switchyard, at a
delivery point in the vicinity of the
Paradise steam plant and at such other
points of delivery as may hereafter be
agreed upon by the Government and
Tennessee Valley Authority (TVA).
Billing Month:
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario 1 will remain
in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay 5.138 percent
of the credit the Administrator of
Southeastern Power Administration
(Administrator) provides to the TVA as
consideration for delivering capacity
and energy for the account of the
Administrator to points of delivery of
Other Customers or interconnection
points of delivery with other electric
systems for the benefit of Other
Customers, as agreed by contract
between the Administrator and TVA.
Energy to be Furnished by the
Government:
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Scenario 2—Cost Recovered From
Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $59,600,000,
the same as the revenue requirement in
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that
can be scheduled and the remainder
from energy, at charges that will be
determined at the time. Under Scenario
2, the cost of the TVA transmission
credit will be passed to customers
outside the TVA System. This rate
alternative will be in effect when the
Corps modifies operation of the Wolf
Creek Project and the Center Hill Project
to allow some of the capacity scheduled.
When the lake level rises and capacity
is available, the capacity will be
allocated on an interim basis to the
customers.
Rate Scenario 3—Original Cumberland
Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
PO 00000
Frm 00029
Fmt 4703
Sfmt 4703
58795
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
$4.245 per kilowatt/month of total
contract demand.
Energy Charge:
None.
Energy to be Furnished by the
Government:
The Government shall make available
each contract year to the customer from
the Projects through the customer’s
interconnections with TVA and the
customer will schedule and accept an
allocation of 1500 kilowatt-hours of
energy delivered at the TVA border for
each kilowatt of contract demand. A
contract year is defined as the 12
months beginning July 1 and ending at
midnight June 30 of the following
calendar year. The energy made
available for a contract year shall be
scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
customer’s contract demand. The
customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the customer’s
contract demand; provided, that the
combined schedule of all Southeastern
customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these customers.
Service Interruption:
When delivery of capacity is
interrupted or reduced due to
conditions on the Administrator’s
system beyond his control, the
Administrator will continue to make
available the portion of his declaration
of energy that can be generated with the
capacity available.
For such interruption or reduction
due to conditions on the
Administrator’s system which have not
been arranged for and agreed to in
advance, the demand charge for
capacity made available will be reduced
as to the kilowatts of such capacity
which have been interrupted or reduced
in accordance with the following
formula:
E:\FR\FM\22SEN1.SGM
22SEN1
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
Wholesale Power Rate Schedule
CEK–1–H
Availability:
This rate schedule shall be available
to East Kentucky Power Cooperative
(hereinafter called the Customer).
Applicability:
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and power available from the
Laurel Project and sold in wholesale
quantities.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of 60 hertz. The power shall
be delivered at nominal voltages of
161,000 volts to the transmission
systems of the Customer.
Points of Delivery:
The points of delivery will be the
161,000 volt bus of the Wolf Creek
Power Plant and the 161,000 volt bus of
the Laurel Project. Other points of
delivery may be as agreed upon.
Billing Month:
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Conditions of Service:
The customer shall at its own expense
provide, install, and maintain on its side
of each delivery point the equipment
necessary to protect and control its own
system. In so doing, the installation,
adjustment and setting of all such
control and protective equipment at or
near the point of delivery shall be
coordinated with that which is installed
by and at the expense of the Tennessee
Valley Authority (TVA) on its side of
the delivery point.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U. S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario 1 will remain
in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay 31.192 percent
of the credit the Administrator of
Southeastern Power Administration
(Administrator) provides to the TVA as
consideration for delivering capacity
and energy for the account of the
Administrator to points of delivery of
Other Customers or interconnection
points of delivery with other electric
systems for the benefit of Other
Customers, as agreed by contract
between the Administrator and TVA.
Energy to be Furnished by the
Government:
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U. S. Army
Corps of Engineers.
Rate Scenario 2—Cost Recovered from
Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $59,600,000,
the same as the revenue requirement in
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that
can be scheduled and the remainder
PO 00000
Frm 00030
Fmt 4703
Sfmt 4703
from energy, at charges that will be
determined at the time. Under Scenario
2, the cost of the TVA transmission
credit will be passed to customers
outside the TVA System. This rate
alternative will be in effect when the
Corps modifies operation of the Wolf
Creek Project and the Center Hill Project
to allow some of the capacity scheduled.
When the lake level rises and capacity
is available, the capacity will be
allocated on an interim basis to the
customers.
Rate Scenario 3—Original Cumberland
Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
$2.950 per kilowatt/month of total
contract demand.
Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Furnished by the
Government:
The Government shall make available
each contract year to the customer from
the Projects through the customer’s
interconnections with TVA and the
customer will schedule and accept an
allocation of 1500 kilowatt-hours of
energy delivered at the TVA border for
each kilowatt of contract demand plus
369 kilowatt-hours of energy delivered
for each kilowatt of contract demand to
supplement energy available at the
Laurel Project. A contract year is
defined as the 12 months beginning July
1 and ending at midnight June 30 of the
following calendar year. The energy
made available for a contract year shall
be scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
customer’s contract demand. The
customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the customer’s
E:\FR\FM\22SEN1.SGM
22SEN1
EN22SE11.001</GPH>
jlentini on DSK4TPTVN1PROD with NOTICES
58796
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
58797
conditions on the Administrator’s
system beyond his control, the
Administrator will continue to make
available the portion of his declaration
of energy that can be generated with the
capacity available.
For such interruption or reduction
due to conditions on the
Administrator’s system which have not
been arranged for and agreed to in
advance, the demand charge for
capacity made available will be reduced
as to the kilowatts of such capacity
which have been interrupted or reduced
in accordance with the following
formula:
Wholesale Power Rate Schedule
CM–1–H
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario 1 will remain
in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
Administration (Administrator)
provides to the TVA as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
Energy to be Furnished by the
Government:
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Availability:
This rate schedule shall be available
to the South Mississippi Electric Power
Association, Municipal Energy Agency
of Mississippi, and Mississippi Delta
Energy Agency (hereinafter called the
Customers).
Applicability:
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of 60 hertz. The power shall
be delivered at nominal voltages of
161,000 volts to the transmission
systems of Mississippi Power and Light.
Points of Delivery
The points of delivery will be at
interconnection points of the Tennessee
Valley Authority (TVA) system and the
Mississippi Power and Light system.
Other points of delivery may be as
agreed upon.
Billing Month:
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective on the last day of
each calendar month.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
Percent
Mississippi Delta Energy Agency
Municipal Energy Agency of Mississippi ......................................
South Mississippi EPA .................
PO 00000
Frm 00031
Fmt 4703
Sfmt 4703
2.058
3.447
9.358
Rate Scenario 2—Cost Recovered From
Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $59,600,000,
the same as the revenue requirement in
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that
can be scheduled and the remainder
from energy, at charges that will be
determined at the time. Under Scenario
2, the cost of the TVA transmission
credit will be passed to customers
outside the TVA System. This rate
alternative will be in effect when the
Corps modifies operation of the Wolf
Creek Project and the Center Hill Project
to allow some of the capacity scheduled.
When the lake level rises and capacity
is available, the capacity will be
allocated on an interim basis to the
customers.
Rate Scenario 3—Original Cumberland
Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
$4.245 per kilowatt/month of total
contract demand.
Energy Charge:
None.
E:\FR\FM\22SEN1.SGM
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EN22SE11.002</GPH>
jlentini on DSK4TPTVN1PROD with NOTICES
contract demand; provided, that the
combined schedule of all Southeastern
customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these customers.
Service Interruption:
When delivery of capacity is
interrupted or reduced due to
58798
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
less than 60 hours per kilowatt of the
Customer’s contract demand. The
Customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the Customer’s
contract demand; provided, that the
combined schedule of all Southeastern
Customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these Customers.
In the event that any portion of the
capacity allocated to the Customers is
not initially delivered to the Customers
as of the beginning of a full contract
year, the 1500 kilowatt hours shall be
reduced 1/12 for each month of that
year prior to initial delivery of such
capacity.
Service Interruption:
When delivery of capacity is
interrupted or reduced due to
conditions on the Administrator’s
system beyond his control, the
Administrator will continue to make
available the portion of his declaration
of energy that can be generated with the
capacity available.
For such interruption or reduction
due to conditions on the
Administrator’s system which have not
been arranged for and agreed to in
advance, the demand charge for
capacity made available will be reduced
as to the kilowatts of such capacity
which have been interrupted or reduced
in accordance with the following
formula:
Wholesale Power Rate Schedule
CC–1–I
hours CDT or CST, whichever is
currently effective, on the last day of
each calendar month.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
TVA Transmission Charge:
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
Administration (Administrator)
provides to the TVA as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
Availability:
This rate schedule shall be available
to public bodies and cooperatives
served through the facilities of Carolina
Power & Light Company, Western
Division (hereinafter called the
Customers).
Applicability:
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of 60 hertz. The power shall
be delivered at nominal voltages of
161,000 volts to the transmission system
of Carolina Power & Light Company,
Western Division.
Points of Delivery:
The points of delivery will be at
interconnecting points of the Tennessee
Valley Authority (TVA) system and the
Carolina Power & Light Company,
Western Division system. Other points
of delivery may be as agreed upon.
Billing Month:
The billing month for power sold
under this schedule shall end at 2400
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U. S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario will remain in
effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
PO 00000
Frm 00032
Fmt 4703
Sfmt 4703
Percent
French Broad EMC .......................
Haywood EMC ..............................
Town of Waynesville ....................
1.713
0.501
0.355
CP&L Transmission Charge:
The Customer will pay a ratable
percent listed below of the charge for
transmission service furnished by
Carolina Power & Light Company,
Western Division.
Percent
French Broad EMC .......................
Haywood EMC ..............................
Town of Waynesville ....................
Energy to be Furnished by the
Government:
E:\FR\FM\22SEN1.SGM
22SEN1
66.667
19.512
13.821
EN22SE11.003</GPH>
jlentini on DSK4TPTVN1PROD with NOTICES
Energy to be Furnished by the
Government:
The Government shall make available
each contract year to the Customer from
the Projects through the Customer’s
interconnections with TVA and the
Customer will schedule and accept an
allocation of 1500 kilowatt-hours of
energy delivered at the TVA border for
each kilowatt of contract demand. A
contract year is defined as the 12
months beginning July 1 and ending at
midnight June 30 of the following
calendar year. The energy made
available for a contract year shall be
scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the Customer’s contract
demand and the minimum amount
scheduled in any month shall not be
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
The Government will sell to the
customer and the customer will
purchase from the Government energy
each billing month equivalent to a
percentage specified by contract of the
energy made available to Carolina
Power & Light Company (less applicable
losses). The Customer’s contract
demand and accompanying energy
allocation will be divided pro rata
among its individual delivery points
served from the Carolina Power & Light
Company’s Western Division
transmission system.
jlentini on DSK4TPTVN1PROD with NOTICES
Rate Scenario 2—Cost Recovered From
Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $59,600,000,
the same as the revenue requirement in
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that
can be scheduled and the remainder
from energy, at charges that will be
determined at the time. Under Scenario
2, the cost of the TVA transmission
credit will be passed to customers
outside the TVA System. This rate
alternative will be in effect when the
Corps modifies operation of the Wolf
Creek Project and the Center Hill Project
to allow some of the capacity scheduled.
When the lake level rises and capacity
is available, the capacity will be
allocated on an interim basis to the
customers.
Rate Scenario 3—Original Cumberland
Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
$4.832 per kilowatt/month of total
contract demand.
Energy Charge:
None.
CP&L Transmission Charge:
$1.3334 per kilowatt/month of total
contract demand (As of July 2011 and
provided for illustrative purposes.).
The CP&L transmission rate is subject
to annual adjustment on April 1 of each
year and will be computed subject to the
formula in Appendix A attached to the
Government—Carolina Power & Light
Company contract.
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
Energy to be Furnished by the
Government:
The Government will sell to the
customer and the customer will
purchase from the Government energy
each billing month equivalent to a
percentage specified by contract of the
energy made available to Carolina
Power & Light Company (less six
percent [6%] losses). The Customer’s
contract demand and accompanying
energy allocation will be divided pro
rata among its individual delivery
points served from the Carolina Power
& Light Company’s, Western Division
transmission system.
Wholesale Power Rate Schedule
CK–1–H
Availability:
This rate schedule shall be available
to public bodies served through the
facilities of Kentucky Utilities
Company, (hereinafter called the
Customers.).
Applicability:
This rate schedule shall be applicable
to electric capacity and energy available
from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley,
J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereinafter
called collectively the ‘‘Cumberland
Projects’’) and sold in wholesale
quantities.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a nominal
frequency of 60 hertz. The power shall
be delivered at nominal voltages of
161,000 volts to the transmission
systems of Kentucky Utilities Company.
Points of Delivery:
The points of delivery will be at
interconnecting points between the
Tennessee Valley Authority (TVA)
system and the Kentucky Utilities
Company system. Other points of
delivery may be as agreed upon.
Billing Month:
The billing month for power sold
under this schedule shall end at 2400
hours CDT or CST, whichever is
currently effective on the last day of
each calendar month.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
PO 00000
Frm 00033
Fmt 4703
Sfmt 4703
58799
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario 1 will remain
in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay a ratable
percent listed below of the credit the
Administrator of Southeastern Power
Administration (Administrator)
provides to the TVA as consideration for
delivering capacity and energy for the
account of the Administrator to points
of delivery of Other Customers or
interconnection points of delivery with
other electric systems for the benefit of
Other Customers, as agreed by contract
between the Administrator and TVA.
Percent
City
City
City
City
City
City
City
City
City
City
City
City
of
of
of
of
of
of
of
of
of
of
of
of
Barbourville .......................
Bardstown .........................
Bardwell ............................
Benham .............................
Corbin ................................
Falmouth ...........................
Frankfort ............................
Madisonville ......................
Nicholasville ......................
Owensboro ........................
Paris ..................................
Providence ........................
0.404
0.412
0.099
0.046
0.477
0.108
2.866
1.432
0.469
4.587
0.250
0.226
Energy to be Furnished by the
Government:
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Scenario 2—Cost Recovered From
Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
E:\FR\FM\22SEN1.SGM
22SEN1
58800
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
under this alternative is $59,600,000,
the same as the revenue requirement in
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that
can be scheduled and the remainder
from energy, at charges that will be
determined at the time. Under Scenario
2, the cost of the TVA transmission
credit will be passed to customers
outside the TVA System. This rate
alternative will be in effect when the
Corps modifies operation of the Wolf
Creek Project and the Center Hill Project
to allow some of the capacity scheduled.
When the lake level rises and capacity
is available, the capacity will be
allocated on an interim basis to the
customers.
jlentini on DSK4TPTVN1PROD with NOTICES
Rate Scenario 3—Original Cumberland
Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
$4.245 per kilowatt/month of total
contract demand.
Energy Charge:
None.
Additional Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Furnished by the
Government:
The Government shall make available
each contract year to the Customer from
the Projects and the Customer will
accept an allocation of 1500 kilowatthours of energy for each kilowatt of
contract demand. A contract year is
defined as the 12 months beginning July
1 and ending at midnight June 30 of the
following calendar year. The energy
made available for a contract year shall
be scheduled monthly such that the
maximum amount scheduled in any
month shall not exceed 240 hours per
kilowatt of the Customer’s contract
demand and the minimum amount
scheduled in any month shall not be
less than 60 hours per kilowatt of the
Customer’s contract demand. The
Customer may request and the
Government may approve energy
scheduled for a month greater than 240
hours per kilowatt of the Customer’s
contract demand; provided, that the
combined schedule of all Southeastern
Customers outside TVA and served by
TVA does not exceed 240 hours per
kilowatt of the total contract demands of
these Customers.
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
In the event that any portion of the
capacity allocated to the Customers is
not initially delivered to the Customers
as of the beginning of a full contract
year, the 1500 kilowatt hours shall be
reduced 1⁄12 for each month of that year
prior to initial delivery of such capacity.
For billing purposes, each kilowatt of
capacity will include 1500 kilowatthours energy per year. Customers will
pay for additional energy at the
additional energy rate.
Wholesale Power Rate Schedule
CTV–1–H
Availability:
This rate schedule shall be available
to the Tennessee Valley Authority
(hereinafter called TVA).
Applicability:
This rate schedule shall be applicable
to electric capacity and energy
generated at the Dale Hollow, Center
Hill, Wolf Creek, Old Hickory,
Cheatham, Barkley, J. Percy Priest, and
Cordell Hull Projects (all of such
projects being hereafter called
collectively the ‘‘Cumberland Projects’’)
and the Laurel Project sold under
agreement between the Department of
Energy and TVA.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a frequency of
approximately 60 hertz at the outgoing
terminals of the Cumberland Projects’
switchyards.
Billing Month:
The billing month for capacity and
energy sold under this schedule shall
end at 2400 hours CDT or CST,
whichever is currently effective, on the
last day of each calendar month.
Contract Year:
For purposes of this rate schedule, a
contract year shall be as in Section 13.1
of the Southeastern Power
Administration—Tennessee Valley
Authority Contract.
Power Factor:
TVA shall take capacity and energy
from the Department of Energy at such
power factor as will best serve TVA’s
system from time to time; provided, that
TVA shall not impose a power factor of
less than .85 lagging on the Department
of Energy’s facilities which requires
operation contrary to good operating
practice or results in overload or
impairment of such facilities.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
PO 00000
Frm 00034
Fmt 4703
Sfmt 4703
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U.S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario 1 will remain
in effect for the duration of the Interim
Operating Plan.
Monthly Rates:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Energy to be Made Available:
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U.S. Army
Corps of Engineers.
Rate Scenario 2—Cost Recovered From
Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $59,600,000,
the same as the revenue requirement in
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that
can be scheduled and the remainder
from energy, at charges that will be
determined at the time. Under Scenario
2, the cost of the TVA transmission
credit will be passed to customers
outside the TVA System. This rate
alternative will be in effect when the
Corps modifies operation of the Wolf
Creek Project and the Center Hill Project
to allow some of the capacity scheduled.
When the lake level rises and capacity
is available, the capacity will be
allocated on an interim basis to the
customers.
E:\FR\FM\22SEN1.SGM
22SEN1
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
jlentini on DSK4TPTVN1PROD with NOTICES
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
$2.779 per kilowatt/month of total
contract demand.
Energy Charge:
None.
Additional Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Made Available:
The Department of Energy shall
determine the energy that is available
from the projects for declaration in the
billing month.
To meet the energy requirements of
the Department of Energy’s customers
outside the TVA area (hereinafter called
Other Customers), 768,000 megawatthours of net energy shall be available
annually (including 36,900 megawatthours of annual net energy to
supplement energy available at Laurel
Wholesale Power Rate Schedule
CTVI–1–A
Availability:
This rate schedule shall be available
to customers (hereinafter called the
Customer) who are or were formerly in
the Tennessee Valley Authority
(hereinafter called TVA) service area.
Applicability:
This rate schedule shall be applicable
to electric capacity and energy
generated at the Dale Hollow, Center
Hill, Wolf Creek, Old Hickory,
Cheatham, Barkley, J. Percy Priest, and
Cordell Hull Projects (all of such
projects being hereafter called
collectively the ‘‘Cumberland Projects’’)
and the Laurel Project sold under
agreement between the Department of
Energy and the Customer.
Character of Service:
The electric capacity and energy
supplied hereunder will be three-phase
alternating current at a frequency of
approximately 60 hertz at the outgoing
terminals of the Cumberland Projects’
switchyards.
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
Project). The energy requirement of the
Other Customers shall be available
annually, divided monthly such that the
maximum available in any month shall
not exceed 240 hours per kilowatt of
total Other Customers contract demand,
and the minimum amount available in
any month shall not be less than 60
hours per kilowatt of total Other
Customers demand.
In the event that any portion of the
capacity allocated to Other Customers is
not initially delivered to the Other
Customers as of the beginning of a full
contract year, (July through June), the
1500 hours, plus any such additional
energy required as discussed above,
shall be reduced 1⁄12 for each month of
that year prior to initial delivery of such
capacity.
The energy scheduled by TVA for use
within the TVA System in any billing
month shall be the total energy
delivered to TVA less (1) An adjustment
for fast or slow meters, if any, (2) an
adjustment for Barkley-Kentucky Canal
of 15,000 megawatt-hours of energy
each month which is delivered to TVA
under the agreement from the
Cumberland Projects without charge to
TVA, (3) the energy scheduled by the
Department of Energy in said month for
the Other Customers plus losses of two
percent [2%], and (4) station service
energy furnished by TVA.
Each kilowatt of capacity will include
1500 kilowatt-hours of energy per year,
which is defined as base energy. Energy
received in excess of 1500 kilowatthours per kilowatt will be subject to an
additional energy charge identified in
the monthly rates section of this rate
schedule.
Service Interruption:
When delivery of capacity to TVA is
interrupted or reduced due to
conditions on the Department of
Energy’s system that are beyond its
control, the Department of Energy will
continue to make available the portion
of its declaration of energy that can be
generated with the capacity available.
For such interruption or reduction
(exclusive of any restrictions provided
in the agreement) due to conditions on
the Department of Energy’s system
which have not been arranged for and
agreed to in advance, the demand
charge for scheduled capacity made
available to TVA will be reduced as to
the kilowatts of such scheduled capacity
which have been so interrupted or
reduced for each day in accordance with
the following formula:
Billing Month:
The billing month for capacity and
energy sold under this schedule shall
end at 2400 hours CDT or CST,
whichever is currently effective, on the
last day of each calendar month.
Contract Year:
For purposes of this rate schedule, a
contract year shall be as in Section 13.1
of the Southeastern Power
Administration—Tennessee Valley
Authority Contract.
Southeastern Power Administration
(Southeastern) is including three rate
alternatives. All of the rate alternatives
have a revenue requirement of
$59,600,000.
capacity, to customers outside the TVA
transmission system. Due to restrictions
on the operation of the Wolf Creek
Project and the Center Hill Project
imposed by the U. S. Army Corps of
Engineers (Corps) as a precaution to
prevent failure of the dams,
Southeastern is not able to provide
peaking capacity to these customers.
Southeastern implemented an Interim
Operating Plan for the Cumberland
System to provide these customers with
energy that did not include capacity.
The rates under Scenario 1 will remain
in effect for the duration of the Interim
Operating Plan.
Monthly Rates:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The initial charge for transmission
and Ancillary Services will be the
Rate Scenario 1—Interim Operating
Plan
The final marketing policy for the
Cumberland System was published in
the Federal Register August 5, 1993 (58
FR 41762). The marketing policy for the
Cumberland System of Projects provides
peaking capacity, along with 1500 hours
of energy annually with each kilowatt of
PO 00000
Frm 00035
Fmt 4703
Sfmt 4703
E:\FR\FM\22SEN1.SGM
22SEN1
EN22SE11.004</GPH>
Rate Scenario 3—Original Cumberland
Marketing Policy
58801
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
Customer’s ratable share of the charges
for transmission, distribution, and
ancillary services paid by the
Government. The charges for
transmission and ancillary services are
governed by and subject to refund based
upon the determination in proceedings
before the Federal Energy Regulatory
Commission (FERC) or other overseeing
entity involving the TVA’s and other
transmission provider’s Open Access
Transmission Tariff (OATT).
Proceedings before FERC or other
overseeing entity involving the OATT or
the Distribution charge may result in the
separation of charges currently included
in the transmission rate. In this event,
the Government may charge the
Customer for any and all separate
transmission, ancillary services, and
distribution charges paid by the
Government in behalf of the Customer.
These charges could be recovered
through a capacity charge or an energy
charge, as determined by the
Government.
Energy to be Made Available:
The Customer will receive a ratable
share of the energy made available by
the Nashville District of the U. S. Army
Corps of Engineers.
Rate Scenario 2—Cost Recovered From
Capacity and Energy
This rate alternative will be
implemented if a portion of the
Cumberland Capacity can be scheduled,
though not all the capacity in the
published marketing policy can be
scheduled. The revenue requirement
under this alternative is $59,600,000,
the same as the revenue requirement in
Scenarios 1 and 3. The Rate Scenario 2
will receive revenues from capacity that
can be scheduled and the remainder
from energy, at charges that will be
determined at the time. This rate
jlentini on DSK4TPTVN1PROD with NOTICES
Wholesale Rate Schedule Replacement3
Availability:
This rate schedule shall be available
to public bodies and cooperatives (any
one of whom is hereinafter called the
Customer) in Virginia, North Carolina,
Tennessee, Georgia, Alabama,
Mississippi, Kentucky and southern
Illinois to whom power is provided
pursuant to contracts between the
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
Rate Scenario 3—Original Cumberland
Marketing Policy
The third rate alternative will go into
effect once the Corps lifts all restrictions
on the operation of the Wolf Creek Dam
and Center Hill Dam and Southeastern
returns to operations that support the
published marketing policy.
Monthly Rate:
The monthly rate for capacity and
energy sold under this rate schedule
shall be:
Demand Charge:
$2.779 per kilowatt/month of total
contract demand.
Energy Charge:
None.
Additional Energy Charge:
10.358 mills per kilowatt-hour.
Transmission Charge:
The initial charge for transmission
and Ancillary Services will be the
Customer’s ratable share of the charges
for transmission, distribution, and
ancillary services paid by the
Government. The charges for
transmission and ancillary services are
governed by and subject to refund based
upon the determination in proceedings
before FERC or other overseeing entity
involving the TVA’s and other
transmission provider’s Open Access
Transmission Tariff (OATT).
Proceedings before FERC or other
overseeing entity involving the OATT or
the Distribution charge may result in the
separation of charges currently included
in the transmission rate. In this event,
the Government may charge the
Customer for any and all separate
transmission, ancillary services, and
distribution charges paid by the
Government in behalf of the Customer.
These charges could be recovered
through a capacity charge or an energy
charge, as determined by the
Government.
Energy To Be Made Available:
The energy will be scheduled by TVA
and the Customer will receive their
ratable share, in accordance with the
Government-Customer Contract. Energy
shall be accounted for, in accordance
with agreements with TVA.
The Customer will receive a ratable
share of their capacity, in accordance
with the Government-Customer
Contract.
Service Interruption:
When delivery of capacity to TVA is
interrupted or reduced due to
conditions on the Department of
Energy’s system that are beyond its
control, the Department of Energy will
continue to make available the portion
of its declaration of energy that can be
generated with the capacity available.
The customer will receive a ratable
share of this capacity.
For such interruption or reduction
(exclusive of any restrictions provided
in the agreement) due to conditions on
the Department of Energy’s system
which have not been arranged for and
agreed to in advance, the demand
charge for scheduled capacity made
available to the Customer will be
reduced as to the kilowatts of such
scheduled capacity which have been so
interrupted or reduced for each day in
accordance with the following formula:
Government and the customer from the
Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J.
Percy Priest, Cordell Hull, and Laurel
Projects (all of such projects being
hereinafter called collectively the
‘‘Cumberland Projects’’) .
Applicability:
This rate schedule shall be applicable
to the sale of wholesale energy
purchased to meet contract minimum
energy sold under appropriate contracts
between the Government and the
Customer.
Character of Service:
The energy supplied hereunder will
be delivered at the delivery points
provided for under appropriate
contracts between the Government and
the Customer.
Monthly Charge:
The rate for replacement energy will
be a formulary capacity charge based on
the monthly cost to the Government to
alternative will be in effect when the
Corps modifies operation of the Wolf
Creek Project and the Center Hill Project
to allow some of the capacity scheduled.
When the lake level rises and capacity
is available, the capacity will be
allocated on an interim basis to the
customers. The Customer will pay the
same rate for capacity and energy as
TVA. The Customer will pay their
ratable share of any transmission
charges paid in behalf of the Customer.
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22SEN1
EN22SE11.005</GPH>
58802
Federal Register / Vol. 76, No. 184 / Thursday, September 22, 2011 / Notices
purchase replacement energy necessary
to support capacity in the Cumberland
System divided by the capacity
available from the Cumberland System,
which is 950,000 kilowatts in the
published power marketing policy. The
capacity rate will be adjusted for any
capacity retained by the Customer’s
transmission facilitator.
Conditions of Service:
The customer shall at its own expense
provide, install, and maintain on its side
of each delivery point the equipment
necessary to protect and control its own
system.
[FR Doc. 2011–24224 Filed 9–21–11; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. RD11–4–000]
Commission Information Collection
Activities (FERC–725A); Comment
Request; Submitted for OMB Review
Federal Energy Regulatory
Commission.
ACTION: Notice.
AGENCY:
In compliance with the
requirements of section 3507 of the
Paperwork Reduction Act of 1995, 44
U.S.C. 3507, the Federal Energy
Regulatory Commission (Commission or
FERC) has submitted the information
collection described below to the Office
of Management and Budget (OMB) for
review of the information collection
requirements. Any interested person
may file comments directly with OMB
and should address a copy of those
comments to the Commission as
explained below. The Commission
issued a Notice in the Federal Register
(76 FR 23801, 04/28/2011) requesting
public comments. FERC received no
comments on the FERC–725A and has
made this notation in its submission to
OMB.
DATES: Comments in consideration of
the collection of information are due
October 24, 2011.
ADDRESSES: Comments may be filed
either electronically (eFiled) or in paper
format, and should refer to Docket No.
RD11–4–000. Documents must be
prepared in an acceptable filing format
and in compliance with Commission
jlentini on DSK4TPTVN1PROD with NOTICES
SUMMARY:
submission guidelines at: https://www.
ferc.gov/help/submission-guide.asp.
eFiling instructions are available at:
https://www.ferc.gov/docs-filing/efiling.
asp. First time users must follow
eRegister instructions at: https://www.
ferc.gov/docs-filing/eregistration.asp, to
establish a username and password
before eFiling. The Commission will
send an automatic acknowledgement to
the sender’s e-mail address upon receipt
of eFiled comments. Commenters
making an eFiling should not make a
paper filing. Commenters that are not
able to file electronically must send an
original of their comments to: Federal
Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
Users interested in receiving
automatic notification of activity in this
docket may do so through eSubscription
at https://www.ferc.gov/docs-filing/
esubscription.asp. In addition, all
comments and FERC issuances may be
viewed, printed or downloaded
remotely through FERC’s eLibrary at
https://www.ferc.gov/docs-filing/elibrary.
asp, by searching on Docket No. RD11–
4–000. For user assistance, contact
FERC Online Support by e-mail at
ferconlinesupport@ferc.gov, or by phone
at: (866) 208–3676 (toll-free), or (202)
502–8659 for TTY.
FOR FURTHER INFORMATION CONTACT:
Ellen Brown may be reached by e-mail
at DataClearance@FERC.gov, telephone
at (202) 502–8663, and fax at (202) 273–
0873.
SUPPLEMENTARY INFORMATION: The
information collected under the order in
Docket No. RD11–4–000 under the
requirements of FERC–725A,
‘‘Mandatory Reliability Standards for
the Bulk-Power System’’ (OMB No.
1902–0244), is required by Commissionapproved Reliability Standard EOP–
008–1 (Loss of Control Center
Functionality) that requires reliability
coordinators, transmission operators,
and balancing authorities to have an
operating plan and facilities for backup
functionality to ensure Bulk-Power
System reliability in the event that a
control center becomes inoperable. The
standard consists of eight requirements.
Requirement R1 requires each
applicable entity to have a current
operating plan describing the manner in
which it will continue to meet its
functional obligations in the event that
its primary control center functionality
Number of
respondents
annually
(A)
Changes to FERC–725A data collection
Review and possible revision of plan (one-time) ...................................
VerDate Mar<15>2010
17:29 Sep 21, 2011
Jkt 223001
PO 00000
Frm 00037
Fmt 4703
215
Sfmt 4703
58803
is lost. Requirement R2 instructs each
applicable entity to have a copy of its
current plan for backup functionality at
its primary control center and at the
location providing backup functionality.
Requirement R3 mandates that each
reliability coordinator have a backup
control center that provides
functionality sufficient to maintain
compliance with all Reliability
Standards that depend on primary
control center functionality.
Requirement R4 directs balancing
authorities and transmission operators
to have a backup functionality, either
through a facility or contracted services,
to maintain compliance with all
Reliability Standards that depend on
their primary control center
functionality. Requirement R5 requires
each applicable entity to review
annually and approve its plan for
backup functionality. Requirement R6
mandates that primary and backup
functionality cannot depend on each
other, and Requirement R7 requires
each applicable entity to annually test
and document the results of its plan
demonstrating the transition time
between the simulated loss of the
primary control center and the full
implementation of the backup
functionality. Finally, each reliability
coordinator, balancing authority or
transmission operator that experiences a
loss of either primary or backup
functionality anticipated to last for more
than six months must, in accordance
with Requirement R8, provide a plan to
its Regional Entity within six calendar
months of the date when functionality
is lost showing how it will re-establish
such functionality.
Rather than creating entirely new
obligations with respect to the loss of
control center functionality, Reliability
Standard EOP–008–1 upgrades existing
planning requirements. The standard
does not impose entirely new burdens
on the effected entities, but it does
impose new requirements regarding the
approval, placement, documentation
and updating of plans as well as
requires entities that may not already
possess backup functionality to obtain,
possibly through contractual
arrangements, backup capabilities.
Burden Statement: Public reporting
burden resulting from the approval of
Reliability Standard EOP–008–1 is
estimated as:
Number of
responses per
respondent
(B)
1
E:\FR\FM\22SEN1.SGM
Average
burden hours
per response
(C)
20 ............................
22SEN1
Total annual
hours
(A×B×C)
4,300
]]>Agencies
[Federal Register Volume 76, Number 184 (Thursday, September 22, 2011)]
[Notices]
[Pages 58790-58803]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-24224]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Notice of Interim Approval
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of interim approval for Southeastern Power
Administration Cumberland System.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved, on an
interim basis, Rate Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-
I, CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3. The rates were
approved on an interim basis through September 30, 2013. The new rates
take effect on October 1, 2011, and are subject to confirmation and
approval on a final basis by the Federal Energy Regulatory Commission
(Commission).
DATES: Approval of the rate schedules on an interim basis is effective
October 1, 2011, through September 30, 2013.
FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs, III, Assistant
Administrator, Finance & Marketing, Southeastern Power Administration,
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-
6711, (706) 213-3800.
SUPPLEMENTARY INFORMATION: On May 6, 2009, the Commission confirmed and
approved on a final basis Wholesale Power Rate Schedules CBR-1-G, CSI-
1-G, CEK-1-G, CM-1-G, CC-1-H, CK-1-G, and CTV-1-G for the period from
October 1, 2008, to September 30, 2013 (127 FERC ] 62,115). Rate
Schedule CTVI-1 was approved by the Administrator, Southeastern Power
Administration, for a period ending September 30, 2013.
The power marketing policy provides peaking capacity, along with
1500 hours of energy with each kilowatt of capacity, to customers
outside the Tennessee Valley Authority (TVA) transmission system. Due
to restrictions on the operations of the Wolf Creek and Center Hill
Projects imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dam, Southeastern has not been
able to provide peaking capacity to these customers. An interim
operating plan for the Cumberland System provides these customers with
energy that does not include capacity.
A current repayment study using present rates shows that revenues
will not be adequate to meet repayment criteria. A revised study with a
revenue requirement increase of $9,570,000, or about eighteen percent,
shows that these rates will be adequate to meet repayment criteria.
Because the estimated annual energy delivered to the customers has been
reduced, the rate increase under the interim operating plan is about 40
percent.
The rate schedules have been developed to cover the differing
marketing arrangements in the Cumberland System under normal operation
conditions. The Rate Schedules CBR-1-H, CSI-1-H, and
[[Page 58791]]
CM-1-H, include rates for customers who receive 1500 kilowatt-hours of
energy annually for each kilowatt of capacity. The transmission and
scheduling arrangements under each of these rate schedules are
different. Rate Schedule CEK-1-H is for East Kentucky Power
Cooperative, which receives a fixed quantity of energy annually from
projects connected to the TVA transmission system plus the output of
the Laurel Project. Rate Schedule CK-1-H is for customers in Kentucky
who receive 1800 kilowatt-hours of energy annually for each kilowatt of
capacity. Rate Schedule CC-1-I is for customers on the Carolina Power &
Light Western Division, (or Progress Energy Carolinas Western
Division).
Rate Schedule CTV-1-H is for TVA and TVPPA. Rate Schedule CTVI-1-A
is for customers inside the TVA system who choose a power supplier
other than TVA.
Dated: September 12, 2011.
Daniel B. Poneman,
Deputy Secretary.?>
DEPARTMENT OF ENERGY
Deputy Secretary
[Rate Order No. SEPA-55]
In the Matter of: Southeastern Power Administration Cumberland System
Rates; Order Confirming and Approving Power Rates on an Interim Basis
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern
Power Administration (Southeastern or SEPA) were transferred to and
vested in the Secretary of Energy. DOE Delegation Order No. 00-037.00,
issued on December 6, 2001, granted the Deputy Secretary authority to
confirm, approve, and place into effect Southeastern's rates on an
interim basis. This rate order is issued by the Deputy Secretary
pursuant to this delegation.
Background
On May 9, 2009, the Commission issued an order approving Rate
Schedules CBR-1-G, CSI-1-G, CEK-1-G, CM-1-G, CC-1-H, CK-1-G, and CTV-1-
G on a final basis for the sale of power from the Cumberland System
(127 FERC ] 62,115). The Administrator of Southeastern Power
Administration approved Rate Schedule CTVI-1 for a period ending
September 30, 2013.
The power marketing policy provides peaking capacity, along with
1500 hours of energy with each kilowatt of capacity, to customers
outside the Tennessee Valley Authority (TVA) transmission system. Due
to restrictions on the operations of the Wolf Creek and Center Hill
Projects imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dam, Southeastern has not been
able to provide peaking capacity to these customers. An interim
operating plan for the Cumberland System provides these customers with
energy that does not include capacity.
Public Notice and Comment
Notice of a proposed rate adjustment was published in the Federal
Register March 7, 2011 (76 FR 12354). The notice advised interested
parties of a public information and comment forum to be held in
Nashville, Tennessee on May 3, 2011. By notice published in the Federal
Register May 20, 2011 (76 FR 29235), Southeastern extended the comment
period to July 1, 2011. Written comments were received from six sources
pursuant to this notice.
The comments have been condensed into the following seven major
categories:
1. Replacement costs.
2. Average energy estimate/energy true-up.
3. Corps Operation and Maintenance (O&M).
4. Forced payments/repayment study method.
5. Energy shaping.
6. Dam safety.
7. SEPA Rates versus Market Cost of Power.
Southeastern's response follows each comment.
Category 1: Replacement Costs
Comment: SEPA should remove opportunity projects from projected
replacements. In future studies, only those opportunity projects that
are approved by the Project Coordinating Committee (PCC) for funding
through the Long-Term Memorandum of Agreement (MOA) will be included in
capitalized investments. It is premature to include opportunity
projects in the current study.
Comment: SEPA should consider revising the cost for the 20-year
rehabilitation plan so that renewals are completed over a 30-year
period of time. To account for the differences between proposed and
actual capital expenditures, a true-up mechanism for capital expenses
could be implemented.
Comment: SEPA rates must be based on a realistic estimate of
replacement costs actually expected to be incurred.
Response: Southeastern is required to include estimates of
replacements and additions in the repayment study to support the
proposed rate schedules. As a result of the comments received,
Southeastern has removed the opportunity projects from the plan of
replacements. Southeastern expects future replacements and
rehabilitation of the Cumberland Projects will be accomplished through
customer funding. Because the customers are expected to control
customer funding, they are not expected to fund the opportunity
projects through the rate adjustments established in this document.
The proposed rate schedules are to be effective for a two-year
period, from October 1, 2011 to September 30, 2013. Any true-up
mechanism incorporated into the proposed rate schedules would be
implemented beyond the term of the proposed rate schedules. As such,
the proposed rate schedules do not include a true-up mechanism.
The rehabilitation plan for the Cumberland System is expected to be
implemented over twenty years. It is possible that the implementation
of the plan may extend to thirty years. However, the proposed rate
schedules have been developed with the present twenty-year plan of
implementation, as Southeastern considers this the best estimate
currently available.
Category 2: Average Energy Estimate/Energy True-Up
Comment: SEPA should consider revising the energy sales starting in
the year 2014 to 3,000,000 hours to account for an improved generation
due to head improvements once Wolf Creek and Center Hill project lake
levels return to normal.
Comment: Annual energy sales for 2009 and 2010 were 2,654,328 MWh
and 2,706,215 MWh respectively. In addition, the Tennessee Valley
Authority (TVA) prepared an independent estimate of 2,707,500 MWh for
energy sales in 2012 and 2013. SEPA's projected energy sales of
2,538,434 MWh are below actual energy sales for 2009 and 2010 and are
below TVA's estimate. We recommend SEPA utilize TVA's estimated energy
sales of 2,707,500 MWh for 2012-14.
Comment: SEPA should not base the proposed rate adjustment on an
arbitrarily determined annual system generation amount.
Response: Based on the comments received from the customers in the
Cumberland System, Southeastern has revised the energy estimate used in
the repayment study. Based on the continued Interim operations due to
the ongoing work at Wolf Creek and Center Hill, Southeastern does not
use normal system generation for the term of the Interim Operating Plan
and the development of rates under the Interim
[[Page 58792]]
Operating Plan. Southeastern revised the proposed rate under the
interim Operating Plan to include the energy estimate determined in
TVA's energy model. The primary difference between the estimates was
that the period of record used by TVA is 24 years longer than the
period of record used by Southeastern. This additional data allows for
multiple year of additional river basin hydrology to be considered when
analyzing system operations and in the determination of statistical
average generation for the system. Both the TVA model and
Southeastern's records are comprised of actual project generation
averaged over the respective periods of record. The TVA model also
includes reductions at Wolf Creek and Center Hill.
Category 3: Corps O&M Costs
Comment: Corps O&M expenses included in the repayment study should
be verified in a detailed accounting.
Comment: SEPA should conduct a more intensive study and analysis of
the Corps' request for increased revenues, and engage in collaboration
with the Corps to make further introspective study and analysis of the
scope and need of the Corps' request. SEPA and the Corps through a
collaborative effort can help ameliorate the extreme impact of SEPA's
proposed rate increase by both using more aggressive cost controls and
applying the correct accounting procedures to capital expenditures as
capital assets, thus amortizing those over the life of the cost-
effective improvements to the Corps' facilities. This approach is used
in private sector accounting principles for capital additions.
Comment: SEPA should reexamine Corps operation and maintenance
(``O&M'') cost because these costs are projected to be higher than a
realistic forecast would indicate.
Response: Southeastern recognizes that the customers have an
interest in the maintenance and operation expenses and funding of the
Cumberland Projects. Southeastern shares the customers concern over the
estimated Corps O&M expense included in the repayment study to support
the proposed rate schedules. The estimates used to develop the current
rate schedules in the Cumberland System were about 33 percent lower
than the actual costs incurred. The estimates used to develop the
proposed rate schedules were provided to Southeastern and the customers
in April of 2010. Any variance of the actual costs incurred from these
estimates will impact repayment of the federal investment and will be
accounted for in the next rate adjustment. Southeastern will work in
collaboration with the Corps, the customers, and the O&M Committee to
ensure that operation and maintenance is properly funded and charged
consistent with generally accepted accounting principles.
Category 4: Forced Payments/Repayment Study Method
Comment: Following sound business principles would dictate that a
revenue requirement for the last two years of a 50-year repayment study
should not be driven by pinch points in years 49 and 50 of the study.
Comment: SEPA should consider spreading out forced payments for the
Barkley and Cordell Hull projects over multiple years to reduce the
required payments of these two projects in the years 2016 and 2024
respectively.
Comment: SEPA should revisit its ratemaking methodology to reflect
a more common practice of meeting future revenue requirements through a
series of rate adjustments versus a one-time rate adjustment for the
entire study period.
Comment: Utilizing a series of rate adjustments will more
accurately reflect the change in river operations that will occur after
force majeure conditions are lifted in 2014 or 2015.
Comment: Instead of a single rate adjustment to meet a 50-year
study period, three rate adjustments should be made to meet increasing
revenue requirements in future years.
Comment: Forced payments for Barkley and Cordell Hull should be
added to the repayment study if they will result in lower rates for
2012 and 2013 (e.g. two years of forced payments prior to the Barkley
required payment in 2016, and five years of forced payments prior to
the Cordell Hull required payment in 2024).
Response: The methodology the power marketing administrations are
required to use is set forth in DOE Order RA 6120.2. It describes,
among other things, the highest interest first method of amortization.
Section 8c.(3) of the Order describes the priority of revenue
application.
The power marketing administrations adopted highest interest
bearing first amortization method because it resulted in the lowest
possible rates. Under this method, annual revenues are applied first to
operating expenses and interest. Remaining revenues are then applied
first to any deferred or unpaid annual expense, and then to the Federal
investment. To the extent possible, while still complying with the
repayment periods established for each increment of investment,
amortization is accomplished by application to the highest interest-
bearing investment first. Southeastern is not required to make any
payments until the year that an investment is due for repayment.
Southeastern includes early, or ``forced,'' payments in a repayment
study to override the normal priority of repayment and to comply with
the repayment period for the investment.
Revising the schedule of forced payments as the customers have
requested would result in a slight, though not material, increase in
the revenue requirement than the proposed rate schedules were designed
to recover. This is caused by the increase in expensed interest from
the later payment of high interest rate investment.
Section 7 b. of DOE Order RA6120.2 defines the ``Cost Evaluation
Period'' for the repayment study. The Cost Evaluation Period is the
period of time during which estimates of future costs and revenues may
be modified to reflect changing conditions. For these proposed rate
schedules, the cost evaluation period is two years, fiscal year 2012
and fiscal year 2013. Any changes to the rates or estimates outside the
cost evaluation period, as commenters have requested, are not permitted
under DOE Order RA6120.2.
Category 5: Energy Shaping
Comment: While this is not expected to change over the next two
years, the affected Customers would encourage SEPA to take steps to
work with the Corps to encourage ``shaping'' of the available resource
to provide delivery at times when energy markets recognize higher
demand. This step alone would increase the value of the energy-only
resource that is currently available from the Cumberland River basin
Corps projects.
Comment: SEPA should press the Corps for increased coordination of
stream flow water management and run-of-river energy scheduling to
provide more on-peak energy and less off-peak energy to the extent
possible.
Response: Because of the loss of storage operations at the Wolf
Creek and Center Hill Projects Southeastern is unable to provide
peaking operations for the Cumberland Projects. This is expected to
continue until the rehabilitation work is complete and the reservoirs
have refilled. Southeastern will work with the Corps to provide more
on-peak energy and less off-peak energy to the extent feasible.
Category 6: Dam Safety
Comment: The customers want to express their concern that the
seepage
[[Page 58793]]
repair costs for Wolf Creek and Center Hill as currently classified
would present another rate hurdle.
Comment: Proper classification of costs for dam safety repairs at
Wolf Creek and Center Hill is a significant concern for SEPA hydropower
customers. Currently, combined costs for these two projects are
expected to be over $850 million, and, if not properly classified under
provisions of the Dam Safety Act, will result in a significant rate
increase for hydropower. This creates a significant concern that SEPA
rates may become non-competitive with other energy resources available
to SEPA's customers. Indeed, the proposed rates are already
uneconomical at times over the next two-year time period. To protect
the viability of the federal power program, SEPA should fully exercise
its authority under the Flood Control Act of 1944 to develop the lowest
possible rates to consumers consistent with sound business principles.
Comment: With the projected recovery of the investment needed to
complete the projects in the Master Plan and potential inclusion of the
costs related to the dam safety repairs at the Wolf Creek and Center
Hill Projects, the affected customers recognize that the cost of the
SEPA resource may soon become uneconomical.
Comment: The expenditures for repairs at the Wolf Creek and Center
Hill Dam Projects should be classified as a dam safety project and
therefore subject to reimbursement rates in accordance with the Dam
Safety Act (Section 1203 of the WRDA 1986) rather than as maintenance
costs.
Response: The rehabilitation work at the Wolf Creek and Center Hill
Projects is currently expected to be complete in fiscal year 2014,
which is beyond the two-year term of these proposed rate schedules. The
cost associated with this rehabilitation work is not included with this
rate adjustment.
Southeastern expects to receive from the Corps reports on the cost
of the rehabilitation work that the Corps has determined should be
allocated to power for cost recovery. After Southeastern has received
these reports, Southeastern will develop proposed rate schedules to
recover the costs.
Category 7: SEPA Rates Versus Market Cost of Power
Comment: If SEPA is seeking to recover from the additional funds
required to pay for the dam safety repairs, the cost of power will
likely exceed prevailing market rates. If this occurs, there's some
speculation that some customers will relinquish their SEPA allocations.
In light of this potential scenario, has SEPA performed any modeling to
calculate how costs will be recovered if the customer base continues to
shrink?
Comment: In the instance that the eventual rate does exceed market
rates, is there anything that would prevent SEPA from considering the
option of exercising its authority under the Flood Control Act to
ensure that the rates remain the lowest possible consistent with sound
business principles?
Response: The provisions of section 5 of the Flood Control Act of
1944 require that Southeastern's ``Rate Schedules shall be drawn having
regard to the recovery (upon the basis of the application of such rate
schedules to the capacity of the electric facilities of the projects)
of the cost of producing and transmitting such electric energy,
including the amortization of the capital investment allocated to power
over a reasonable period of years.'' As such, Southeastern is required
to develop and propose rate schedules that recover the cost. If such
rates prove to be above market, Southeastern will make a determination
of the appropriate steps necessary to market the power and meet its
repayment obligation.
Discussion
System Repayment
An examination of Southeastern's revised system power repayment
study, prepared in July, 2011, for the Cumberland System, shows that
with the proposed rates, all system power costs are paid within the 50-
year repayment period required by existing law and DOE Order RA 6120.2.
The Administrator of Southeastern has certified that the rates are
consistent with applicable law and that they are the lowest possible
rates to customers consistent with sound business principles.
Environmental Impact
Southeastern has reviewed the possible environmental impacts of the
rate adjustment under consideration and has concluded that, because the
adjusted rates would not significantly affect the quality of the human
environment within the meaning of the National Environmental Policy Act
of 1969, the proposed action is not a major Federal action for which
preparation of an Environmental Impact Statement is required.
Availability of Information
Information regarding these rates, including studies, and other
supporting materials, is available for public review in the offices of
Southeastern Power Administration, 1166 Athens Tech Road, Elberton,
Georgia 30635-6711.
Submission to the Federal Energy Regulatory Commission
The rates hereinafter confirmed and approved on an interim basis,
together with supporting documents, will be submitted promptly to FERC
for confirmation and approval on a final basis.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm and approve on an
interim basis, effective October 1, 2011, attached Wholesale Power Rate
Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-1-H,
CTVI-1-A, and Replacement-3. The rate schedules shall remain in effect
on an interim basis through September 30, 2013, unless such period is
extended or until FERC confirms and approves them or substitute rate
schedules on a final basis.
Dated: September 12, 2011.
Daniel B. Poneman,
Deputy Secretary.
Wholesale Power Rate Schedule CBR-1-H
Availability:
This rate schedule shall be available to Big Rivers Electric
Corporation and includes the City of Henderson, Kentucky (hereinafter
called the Customer).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 13,800 volts and 161,000
volts to the transmission system of Big Rivers Electric Corporation.
Points of Delivery:
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be agreed
upon by the Government and Tennessee Valley Authority (TVA).
[[Page 58794]]
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service:
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment, and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of TVA on its side of the delivery
point.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission:
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
Big Rivers Electric Corporation.............................. 32.660
City of Henderson, Kentucky.................................. 2.202
------------------------------------------------------------------------
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all
Southeastern customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
customers.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE11.000
[[Page 58795]]
Wholesale Power Rate Schedule CSI-1-H
Availability:
This rate schedule shall be available to Southern Illinois Power
Cooperative (hereinafter the Customer).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 13,800 volts and 161,000
volts to the transmission system of Big Rivers Electric Corporation.
Points of Delivery:
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be agreed
upon by the Government and Tennessee Valley Authority (TVA).
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay 5.138 percent of the credit the Administrator
of Southeastern Power Administration (Administrator) provides to the
TVA as consideration for delivering capacity and energy for the account
of the Administrator to points of delivery of Other Customers or
interconnection points of delivery with other electric systems for the
benefit of Other Customers, as agreed by contract between the
Administrator and TVA.
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all
Southeastern customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
customers.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[[Page 58796]]
[GRAPHIC] [TIFF OMITTED] TN22SE11.001
Wholesale Power Rate Schedule CEK-1-H
Availability:
This rate schedule shall be available to East Kentucky Power
Cooperative (hereinafter called the Customer).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and power available from the Laurel
Project and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of the Customer.
Points of Delivery:
The points of delivery will be the 161,000 volt bus of the Wolf
Creek Power Plant and the 161,000 volt bus of the Laurel Project. Other
points of delivery may be as agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service:
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of the Tennessee Valley Authority (TVA)
on its side of the delivery point.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay 31.192 percent of the credit the
Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U. S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered from Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$2.950 per kilowatt/month of total contract demand.
Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand plus 369 kilowatt-hours of energy delivered for each
kilowatt of contract demand to supplement energy available at the
Laurel Project. A contract year is defined as the 12 months beginning
July 1 and ending at midnight June 30 of the following calendar year.
The energy made available for a contract year shall be scheduled
monthly such that the maximum amount scheduled in any month shall not
exceed 240 hours per kilowatt of the customer's contract demand and the
minimum amount scheduled in any month shall not be less than 60 hours
per kilowatt of the customer's contract demand. The customer may
request and the Government may approve energy scheduled for a month
greater than 240 hours per kilowatt of the customer's
[[Page 58797]]
contract demand; provided, that the combined schedule of all
Southeastern customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
customers.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE11.002
Wholesale Power Rate Schedule CM-1-H
Availability:
This rate schedule shall be available to the South Mississippi
Electric Power Association, Municipal Energy Agency of Mississippi, and
Mississippi Delta Energy Agency (hereinafter called the Customers).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Mississippi Power and Light.
Points of Delivery
The points of delivery will be at interconnection points of the
Tennessee Valley Authority (TVA) system and the Mississippi Power and
Light system. Other points of delivery may be as agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
Mississippi Delta Energy Agency.............................. 2.058
Municipal Energy Agency of Mississippi....................... 3.447
South Mississippi EPA........................................ 9.358
------------------------------------------------------------------------
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
[[Page 58798]]
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
Customer from the Projects through the Customer's interconnections with
TVA and the Customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the Customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the Customer's contract demand. The
Customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the Customer's
contract demand; provided, that the combined schedule of all
Southeastern Customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced 1/12 for each month of that year prior to initial delivery of
such capacity.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE11.003
Wholesale Power Rate Schedule CC-1-I
Availability:
This rate schedule shall be available to public bodies and
cooperatives served through the facilities of Carolina Power & Light
Company, Western Division (hereinafter called the Customers).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission system of Carolina Power & Light Company, Western
Division.
Points of Delivery:
The points of delivery will be at interconnecting points of the
Tennessee Valley Authority (TVA) system and the Carolina Power & Light
Company, Western Division system. Other points of delivery may be as
agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
TVA Transmission Charge:
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
French Broad EMC............................................. 1.713
Haywood EMC.................................................. 0.501
Town of Waynesville.......................................... 0.355
------------------------------------------------------------------------
CP&L Transmission Charge:
The Customer will pay a ratable percent listed below of the charge
for transmission service furnished by Carolina Power & Light Company,
Western Division.
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
French Broad EMC............................................. 66.667
Haywood EMC.................................................. 19.512
Town of Waynesville.......................................... 13.821
------------------------------------------------------------------------
Energy to be Furnished by the Government:
[[Page 58799]]
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less applicable losses). The Customer's
contract demand and accompanying energy allocation will be divided pro
rata among its individual delivery points served from the Carolina
Power & Light Company's Western Division transmission system.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.832 per kilowatt/month of total contract demand.
Energy Charge:
None.
CP&L Transmission Charge:
$1.3334 per kilowatt/month of total contract demand (As of July
2011 and provided for illustrative purposes.).
The CP&L transmission rate is subject to annual adjustment on April
1 of each year and will be computed subject to the formula in Appendix
A attached to the Government--Carolina Power & Light Company contract.
Energy to be Furnished by the Government:
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less six percent [6%] losses). The
Customer's contract demand and accompanying energy allocation will be
divided pro rata among its individual delivery points served from the
Carolina Power & Light Company's, Western Division transmission system.
Wholesale Power Rate Schedule CK-1-H
Availability:
This rate schedule shall be available to public bodies served
through the facilities of Kentucky Utilities Company, (hereinafter
called the Customers.).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Kentucky Utilities Company.
Points of Delivery:
The points of delivery will be at interconnecting points between
the Tennessee Valley Authority (TVA) system and the Kentucky Utilities
Company system. Other points of delivery may be as agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
City of Barbourville......................................... 0.404
City of Bardstown............................................ 0.412
City of Bardwell............................................. 0.099
City of Benham............................................... 0.046
City of Corbin............................................... 0.477
City of Falmouth............................................. 0.108
City of Frankfort............................................ 2.866
City of Madisonville......................................... 1.432
City of Nicholasville........................................ 0.469
City of Owensboro............................................ 4.587
City of Paris................................................ 0.250
City of Providence........................................... 0.226
------------------------------------------------------------------------
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement
[[Page 58800]]
under this alternative is $59,600,000, the same as the revenue
requirement in Scenarios 1 and 3. The Rate Scenario 2 will receive
revenues from capacity that can be scheduled and the remainder from
energy, at charges that will be determined at the time. Under Scenario
2, the cost of the TVA transmission credit will be passed to customers
outside the TVA System. This rate alternative will be in effect when
the Corps modifies operation of the Wolf Creek Project and the Center
Hill Project to allow some of the capacity scheduled. When the lake
level rises and capacity is available, the capacity will be allocated
on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
Additional Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
Customer from the Projects and the Customer will accept an allocation
of 1500 kilowatt-hours of energy for each kilowatt of contract demand.
A contract year is defined as the 12 months beginning July 1 and ending
at midnight June 30 of the following calendar year. The energy made
available for a contract year shall be scheduled monthly such that the
maximum amount scheduled in any month shall not exceed 240 hours per
kilowatt of the Customer's contract demand and the minimum amount
scheduled in any month shall not be less than 60 hours per kilowatt of
the Customer's contract demand. The Customer may request and the
Government may approve energy scheduled for a month
