Desert Southwest Customer Service Region-Western Area Lower Colorado Balancing Authority-Rate Order No. WAPA-151, 59682-59695 [2011-24787]
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Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
subject rate schedules. On August 29,
2011, the Commission accepted and
suspended the tariff records proposed to
be effective February 1, 2012, subject to
refund and to the outcome of a technical
conference. Kern River Gas
Transmission Company, 136 FERC
¶ 61,140 (2011).
Take notice that a technical
conference to discuss the differences in
the terms and conditions of service
between the Self-Contained Rate
Schedules and Rate Schedule KRF–1
and other related issues encompassed
by Docket Nos. RP04–274–000 and
RP11–2356–000, will be held on,
Tuesday, October 4, 2011 at 10 a.m.
(EST), in a room to be designated at the
offices of the Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426.
Federal Energy Regulatory
Commission conferences are accessible
under section 508 of the Rehabilitation
Act of 1973. For accessibility
accommodations please send an e-mail
to accessibility@ferc.gov or call toll free
1–866–208–3372 (voice) or 202–502–
8659 (TTY), or send a FAX to 202–502–
2106 with the required
accommodations.
All interested persons, parties, and
staff are permitted to attend. For further
information please contact Robert D.
McLean (202) 502–8156.
Dated: September 20, 2011.
Kimberly D. Bose,
Secretary.
being required for assessing project
related effects on aquatic resources. The
focus of the technical session is for the
disputing agency, applicant, and
Commission to provide the Panel with
additional information necessary to
evaluate the disputed studies. All local,
state, and federal agencies, Indian tribes,
and other interested parties are invited
to attend the meeting as observers. The
Panel may also request information or
clarification on written submissions as
necessary to understand the matters in
dispute. The Panel will limit all input
that it receives to the specific studies or
information in dispute and will focus on
the applicability of such studies or
information to the study criteria
stipulated in 18 CFR 5.9(b). If the
number of participants wishing to speak
creates time constraints, the Panel may,
at their discretion, limit the speaking
time for each participant.
If you have any questions, please
contact Ryan Hansen at (202) 502–8074.
Technical Conference
Date: Wednesday, October 5, 2011.
Time: 8:30 a.m.–5 p.m. (EDT).
Place: Doubletree Hotel Syracuse,
6301 State Route 298, East Syracuse,
New York 13057.
Phone: 315–432–0200.
Dated: September 20, 2011.
Kimberly D. Bose,
Secretary.
BILLING CODE 6717–01–P
[FR Doc. 2011–24766 Filed 9–26–11; 8:45 am]
DEPARTMENT OF ENERGY
Western Area Power Administration
DEPARTMENT OF ENERGY
Desert Southwest Customer Service
Region—Western Area Lower
Colorado Balancing Authority—Rate
Order No. WAPA–151
Federal Energy Regulatory
Commission
[Project No. 7518–012]
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On September 16, 2011, Commission
staff, in response to the filing of notice
of study dispute by the New York State
Department of Environmental
Conservation (NYSDEC) on August 29,
2011, convened a single three-person
Dispute Resolution Panel (Panel)
pursuant to 18 CFR 5.14(d).
The Panel will hold a technical
conference at the time and place noted
below. The session will address study
disputes regarding six separate studies
that focus on aquatic resource related
issues. The disputes primarily address
the Commission’s determination on data
collection and study methodologies
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Western Area Power
Administration, DOE.
ACTION: Notice of Order Concerning
Network Integration Transmission
Service and Ancillary Services Formula
Rates.
AGENCY:
Erie Boulevard Hydropower L.P.;
Notice of Dispute Resolution Panel
Meeting and Technical Conference
The Deputy Secretary of
Energy has confirmed and approved
Rate Order No. WAPA–151 and Rate
Schedules PD–NTS3, INT–NTS3, DSW–
SD3, DSW–RS3, DSW–FR3, DSW–EI3,
DSW–SPR3, DSW–SUR3, and DSW–
GI1, placing the Western Area Power
Administration’s (Western) Desert
Southwest Customer Service Region
(DSWR) Parker-Davis Project (P–DP)
Network Integration Transmission
Service (NITS), the AC Intertie Project
(Intertie) NITS, and the Western Area
SUMMARY:
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Mr.
Jack Murray, Rates Manager, Desert
Southwest Customer Service Region,
Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005–
6457, (602) 605–2442, e-mail
jmurray@wapa.gov.
FOR FURTHER INFORMATION CONTACT:
The
Deputy Secretary of Energy approved
Rate Schedules PD–NTS2, INT–NTS2,
DSW–SD2, DSW–RS2, DSW–FR2,
DSW–EI2, DSW–SPR2, and DSW–SUR2
on June 26, 2006 (Rate Order No.
WAPA–127, 71 FR 36332).1 These rates
became effective on July 1, 2006, with
an expiration date of June 30, 2011. The
rate schedules were extended
temporarily through September 30,
2013, under Rate Order No. WAPA–
152.2
SUPPLEMENTARY INFORMATION:
[FR Doc. 2011–24767 Filed 9–26–11; 8:45 am]
BILLING CODE 6717–01–P
Lower Colorado (WALC) Balancing
Authority Ancillary Services formula
rates into effect on an interim basis. The
Provisional Formula Rates will be in
effect until the Federal Energy
Regulatory Commission (FERC)
confirms, approves, and places them
into effect on a final basis or until they
are replaced by other formula rates. The
Provisional Formula Rates will provide
sufficient revenue to pay all annual
costs, including interest expense, and to
repay power investment within the
allowable periods.
DATES: Rate Schedules PD–NTS3, INT–
NTS3, DSW–SD3, DSW–RS3, DSW–
FR3, DSW–EI3, DSW–SPR3, DSW–
SUR3, and DSW–GI1 will be placed into
effect on an interim basis on the first
day of the first full billing period
beginning on or after October 1, 2011,
and will remain in effect until FERC
confirms, approves, and places the rate
schedules into effect on a final basis for
a 5-year period ending September 30,
2016, or until the rate schedules are
superseded.
Desert Southwest Customer Service
Region Network Integration
Transmission Service
Rate Schedules PD–NTS3 and INT–
NTS3 for P–DP and Intertie NITS are
based on a revenue requirement that
recovers the DSWR transmission system
costs for facilities associated with
providing all transmission services as
well as the non-transmission facility
costs allocated to transmission service.
1 FERC confirmed and approved Rate Order No.
WAPA–127 on November 21, 2006, in Docket No.
EF06–5191. See United States Department of
Energy, Western Area Power Administration, 117
FERC ¶ 62,172.
2 WAPA–152, Extension of Rate Order No.
WAPA–127 through September 30, 2013. 76 FR
28767, May 18, 2011.
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WALC Ancillary Services
Western will provide seven ancillary
services pursuant to its Tariff. These are:
(1) Scheduling, System Control, and
Dispatch Service (DSW–SD3); (2)
Reactive Supply and Voltage Control
Service from Generation or Other
Sources Service (VAR Support) (DSW–
RS3); (3) Regulation and Frequency
Response Service (Regulation) (DSW–
FR3); (4) Energy Imbalance Service
(DSW–EI3); (5) Spinning Reserve
Service (DSW–SPR3); (6) Supplemental
Reserve Service (DSW–SUR3); and (7)
Generator Imbalance Service (DSW–
GI1). Rates for these services will be
recalculated each year to incorporate the
most recent financial and load
information, and will be applicable to
all NITS and WALC Ancillary Services
customers.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to the Administrator
of Western; (2) the authority to confirm,
approve, and place such rates into effect
on an interim basis to the Deputy
Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand or
to disapprove such rates to FERC.
Existing Department of Energy
procedures for public participation in
power rate adjustments (10 CFR part
903) were published on September 18,
1985 (50 FR 37835).
Under Delegation Order Nos. 00–
037.00 and 00–001.00C, 10 CFR part
903, and 18 CFR part 300, I hereby
confirm, approve, and place Rate Order
No. WAPA–151, the proposed NITS and
WALC Ancillary Services formula rates,
into effect on an interim basis. By this
Order, I am placing the rates into effect
in less than 30 days to meet contract
deadlines, to avoid financial difficulties
and to provide a rate for a new service.
The new Rate Schedules PD–NTS3,
INT–NTS3, DSW–SD3, DSW–RS3,
DSW–FR3, DSW–EI3, DSW–SPR3,
DSW–SUR3, and DSW–GI1 will be
submitted promptly to FERC for
confirmation and approval on a final
basis.
Dated: September 19, 2011.
Daniel B. Poneman,
Deputy Secretary.
Deputy Secretary
Rate Order No. WAPA–151
In the Matter of: Western Area Power
Administration
Rate Adjustment for the Desert
Southwest Customer Service Region;
Network Integration Transmission
Service and Ancillary Services; Order
Confirming, Approving, and Placing the
Parker-Davis Project and AC Intertie
Project Network Integration
Transmission Service and Western Area
Lower Colorado Ancillary Services
Formula Rates Into Effect on an Interim
Basis
These Network Integration
Transmission Service (NITS) and
Western Area Lower Colorado (WALC)
Ancillary Services formula rates are
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established pursuant to Section 302 of
the Department of Energy (DOE)
Organization Act (42 U.S.C. 7152). This
Act transferred to and vested in the
Secretary of Energy the power marketing
functions of the Secretary of the
Department of the Interior and the
Bureau of Reclamation (Reclamation)
under the Reclamation Act of 1902 (ch.
1093, 32 Stat. 388), as amended and
supplemented by subsequent laws,
particularly section (c) of the
Reclamation Project Act of 1939 (43
U.S.C. 485h(c)) and section 5 of the
Flood Control Act of 1944 (16 U.S.C.
825s); and other acts that specifically
apply to the project involved.
By Delegation Order No. 00–037.00,
effective December 6, 2001, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to the Administrator
of Western; (2) the authority to confirm,
approve, and place such rates into effect
on an interim basis to the Deputy
Secretary of Energy, and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand or
to disapprove such rates to the Federal
Energy Regulatory Commission (FERC).
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985.
Acronyms and Definitions
As used in this Rate Order, the
following acronyms/terms and
definitions apply:
Acronym/term
Definition
$/kW-month ..............................................................................................
12-cp .........................................................................................................
Dollars per kilowatt per month.
Rolling 12-month peak average of customers’ loads in excess of Federal entitlement, coincident with the applicable transmission project’s
peak.
The Administrator of the Western Area Power Administration.
The instantaneous difference between a Balancing Authority’s net actual and scheduled interchange, taking into account the effects of
frequency bias and correction for meter error.
Those services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable
operation of the Transmission Service Provider’s transmission system in accordance with good utility practice.
Annual Transmission Revenue Requirement.
Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authority’s
interchange schedule plus frequency bias.
The responsible entity that integrates resource plans ahead of time,
maintains load-interchange-generation balance within a Balancing
Authority Area, and supports Interconnection frequency in real time.
The term used for a Balancing Authority in Western’s Open Access
Transmission Tariff.
Colorado River Storage Project.
Department of Energy.
Desert Southwest Customer Service Region.
The ancillary service in which the Balancing Authority corrects hourly
for the difference between a customer’s energy supply and energy
usage.
Environmental Impact Statement.
Administrator .............................................................................................
Area Control Error (ACE) .........................................................................
Ancillary Services .....................................................................................
ATRR ........................................................................................................
Automatic Generation Control (AGC) .......................................................
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Balancing Authority (BA) ..........................................................................
Control Area .............................................................................................
CRSP ........................................................................................................
DOE ..........................................................................................................
DSWR .......................................................................................................
Energy Imbalance Service .......................................................................
EIS ............................................................................................................
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Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Acronym/term
Definition
FERC ........................................................................................................
Firm Electric Service Contracts ................................................................
Federal Energy Regulatory Commission.
Contracts of the sale of long-term firm DSWR Federal energy and capacity, pursuant to the Post 1989 General Power Marketing and Allocation Criteria (Marketing Plan).
Federal Register notice.
Fiscal Year.
The ancillary service in which the Balancing Authority corrects hourly
for the difference between a customer’s actual generation and
scheduled generation.
Kilowatt. 1,000 watts.
Kilowatt-hour; the common unit of electric energy, equal to 1 kW produced or delivered for a period of 1 hour.
Kilowatt-month of electric energy, equal to 1 kW produced and delivered for 1 month.
Kilowatt-year. A unit of electrical capacity demanded for 8,760 hours.
Network Service plus 12-month rolling average of monthly entitlements
of Federal Customers plus reserved capacity for all long-term firm
point-to-point transmission service.
Network Transmission Customer’s 12-cp load coincident with applicable transmission project’s peak, expressed as a ratio.
An entity within the Balancing Authority serving load.
Unit of monetary value equal to .001 of U.S. dollar; i.e., one-tenth of a
cent.
Mills per kilowatt-hour.
Maximum capacity to be delivered each month under Firm Electric
Service Contracts. Each monthly entitlement is a percentage of the
seasonal contract-rate-of-delivery.
Megawatt. Equal to 1,000 kW or 1,000,000 watts.
Megawatt-hour. Equal to 1,000,000 watt-hours of electric energy.
Net Annual Transmission Revenue Requirement.
National Environmental Policy Act of 1969 (42 U.S.C. 4321, et seq.).
North American Electric Reliability Corporation.
Firm Transmission Service for the delivery of capacity and energy from
designated network resources to designated network loads not using
one specific path.
An electronic posting system that the Transmission Service Provider
maintains for transmission access data that allows all transmission
customers to view the data simultaneously.
Operation and Maintenance.
Operation, Maintenance, and Replacements.
Generation capacity needed to serve load immediately in the event of
a system contingency. Spinning Reserve Service may be provided
by generating units that are on-line and loaded at less than maximum output.
Generation capacity needed to serve load in the event of a system
contingency, which capacity is not available immediately to serve
load but rather within a short period of time. Supplemental Reserve
Service may be provided by generation units that are on-line but unloaded, by quick start generation, or by interruptible load.
A formula rate which has been confirmed, approved, and placed into
effect on an interim basis by the Deputy Secretary.
A document explaining the rationale and background for the rate proposal contained in this Rate Order, dated February 22, 2011.
The ancillary service under which a Balancing Authority operates generation facilities under its control to produce or absorb reactive
power to maintain voltages on all transmission facilities within acceptable limits.
United States Department of the Interior, Bureau of Reclamation.
A series of Federal laws, viewed as a whole that create the originating
framework under which Western markets power.
The ancillary service under which a Balancing Authority maintains moment-by-moment load-interchange-generation balance with the Balancing Authority area, and supports interconnection frequency.
The revenue required to recover annual expenses, such as O&M, purchased power, transmission service expenses, interest, deferred expenses, repayment of Federal investments, and other assigned
costs.
Rocky Mountain Customer Service Region.
The ancillary service under which a Balancing Authority sets up an arrangement for an energy interchange transaction.
The initial agreement and any amendments or supplements entered
into by the Transmission Customer and Western for service under
the Tariff.
FRN ..........................................................................................................
FY .............................................................................................................
Generator Imbalance Service ...................................................................
kW .............................................................................................................
kWh ...........................................................................................................
kW-month .................................................................................................
kW-year ....................................................................................................
Load (Total) ..............................................................................................
Load-ratio share .......................................................................................
Load Serving Entity (LSE) ........................................................................
Mill ............................................................................................................
Mills/kWh ..................................................................................................
Monthly Entitlements ................................................................................
MW ...........................................................................................................
MWH .........................................................................................................
NATRR .....................................................................................................
NEPA ........................................................................................................
NERC ........................................................................................................
Network Integration Transmission Service (NITS) ...................................
Open Access Same-Time Information System (OASIS) .........................
O&M ..........................................................................................................
OM&R .......................................................................................................
Operating Reserve-Spinning Reserve Service ........................................
Operating Reserve-Supplemental Reserve Service ................................
Provisional Formula Rate .........................................................................
Rate Brochure ..........................................................................................
Reactive Supply and Voltage Control From Generation or Other
Sources Service.
Reclamation ..............................................................................................
Reclamation Law ......................................................................................
Regulation and Frequency Response Service .........................................
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Revenue Requirement ..............................................................................
RMR ..........................................................................................................
Scheduling, System Control, and Dispatch Service ................................
Service Agreement ...................................................................................
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Acronym/term
Definition
Sub-Balancing Authority (SBA) ................................................................
An area within a Balancing Authority that has a boundary metering
scheme and for which an Area Control Error can be measured.
Western Area Power Administration’s revised Open Access Transmission Service Tariff, effective December 1, 2009 (FERC Docket
No. NJ10–1–000).
The DSWR customer taking network or point-to-point transmission
service.
An entity that administers a transmission tariff and provides transmission service to Transmission Customers under applicable transmission service agreements.
Western Area Lower Colorado Balancing Authority.
Western Electricity Coordinating Council.
Western Area Power Administration.
Tariff ..........................................................................................................
Transmission Customer ............................................................................
Transmission Provider ..............................................................................
WALC .......................................................................................................
WECC .......................................................................................................
Western ....................................................................................................
Effective Date
The Provisional Formula Rates will
take effect on the first day of the first
full billing period beginning on or after
October 1, 2011, and will remain in
effect until September 30, 2016, pending
approval by FERC on a final basis.
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Public Notice and Comment
Western has followed the Procedures
for Public Participation in Power and
Transmission Rate Adjustments and
Extensions, 10 CFR part 903, in
developing these formula rates and
schedules. The steps Western took to
involve interested parties in the rate
process were:
1. On September 22, 2010, Western
held an informal public meeting with
customers and interested parties to
discuss DSWR’s proposed rates for NITS
and WALC Ancillary Services. Western
posted all information presented at the
informal public meeting, as well as
answering questions asked at the
meeting, on its Web site at https://
www.wapa.gov/dsw/pwrmkt/ANCSRV/
ANCSRV.htm.
2. On February 15, 2011, DSWR
published a Federal Register notice (76
FR 8730), officially announcing the
proposed NITS and WALC Ancillary
Services formula rates adjustment,
initiating the public consultation and
comment period, announcing the Public
Information and Public Comment
forums and outlining procedures for
public participation.
3. On February 16, 2011, Western
mailed all DSWR transmission
customers and interested parties a copy
of the published Federal Register notice
published on February 15, 2011,(76 FR
8730).
4. On March 10, 2011, beginning at 1
p.m., Western held its Public
Information Forum at the DSWR Office
at 615 South 43rd Avenue, Phoenix,
Arizona. Western representatives
explained the need for the formula rates
adjustment in detail and answered
questions.
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5. On April 6, 2011, beginning at 1
p.m., Western held a Public Comment
Forum at the DSWR Office, Phoenix,
Arizona, to provide the public an
opportunity to comment for the record.
No comments were received at this
forum.
6. Western received three comment
letters during the consultation and
comment period, which ended May 16,
2011.
All comments received have been
considered in the preparation of this
Rate Order.
Comments
No oral comments were received.
The following three organizations
submitted written comments:
• Irrigation & Electrical Districts
Association of Arizona, Phoenix,
Arizona.
• Wellton-Mohawk Irrigation and
Drainage District, Wellton, Arizona.
• Yuma County Water User’s
Association, Yuma, Arizona.
Project Description
DSWR provides Ancillary Services
under the WALC. It encompasses all the
power systems located in the DSWR
marketing area; Boulder Canyon Project
(BCP), Parker-Davis Project (P–DP),
Central Arizona Project (CAP), Colorado
River Storage Project (CRSP), and the
Pacific Northwest-Pacific Southwest
Intertie Project (AC Intertie), as well as
the transmission facilities of the Salt
Lake City Area Integrated Projects of the
CRSP. NITS is provided on the P–DP
and the AC Intertie.
P–DP
P–DP was formed by consolidating
two projects, Davis Dam and Parker
Dam, under terms of the Act of May 28,
1954 (68 Stat. 143). P–DP is operated in
conjunction with the other Federal
hydro generation projects in the
Colorado River Basin. The project
includes 1,541 circuit-miles of highvoltage transmission lines in Arizona,
southern Nevada, and along the
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Colorado River in California. Power
generated from the P–DP is marketed to
customers in Nevada, Arizona, and
California. The current methodologies to
calculate rates for firm electric and
transmission service have been in effect
since October 1, 2008.
AC Intertie
The AC Intertie was authorized by
Section 8 of the Pacific Northwest
Power Marketing Act of August 31, 1964
(16 U.S.C. 837g). Western’s portion of
the AC Intertie consists of two parts, a
northern portion and a southern
portion. The southern portion is
administered by Western’s DSWR and is
treated as a separate, stand alone project
for repayment and operational purposes.
It consists of a 238-mile, 345-kV line
from Mead Substation (Nevada) to
Liberty Substation (Arizona), a 19-mile,
230-kV line from Liberty to Westwing
Substation (Arizona), a 22-mile, 230-kV
line from Westwing to Pinnacle Peak
Substation (Arizona), and two segments
that came on line in April 1996; the 260mile Mead-Phoenix 500-kV AC
Transmission Line between Marketplace
Substation (Nevada) and Perkins
Substation (Arizona), and the 202-mile
Mead-Adelanto 500-kV AC transmission
line between Marketplace and the
existing Adelanto Switching Substation
in southern California. The rate
schedules for firm and non-firm
transmission services were placed into
effect on October 1, 2007, and expire on
September 30, 2012, unless superseded
with new rate schedules.
BCP
Hoover Dam, authorized by the
Boulder Canyon Project Act (45 Stat.
1057, December 21, 1928), sits on the
Colorado River along the Arizona and
Nevada border. Hoover Power Plant has
19 generating units (two for plant use)
and an installed capacity of 2,078,800
kW (4,800 kW for plant use). Highvoltage transmission lines and
substations make it possible for
consumers in southern Nevada,
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Arizona, and southern California to
receive power from the BCP. BCP
electric service rates are adjusted
annually using an existing rate formula
established on April 19, 1996.
CAP
The CAP is one of three related water
development projects that make up the
Colorado River Basin Project. Congress
authorized CAP in 1968 to improve
water resources in the Colorado River
Basin (43 U.S.C. 1501). The legislation
also authorized Federal participation in
the Navajo Generating Station, which
has three coal-fired steam electric
generating units for a combined capacity
of approximately 2,250,000 kW. The
current rate methodology for CAP firm
and non-firm transmission service went
into effect on January 1, 2001, and was
extended through December 31, 2012.
CRSP
CRSP was authorized by the Colorado
River Storage Project Act, ch. 203, 70
Stat. 105, on April 11, 1956. The project
provides water-use developments for
states in the Upper Basin (Colorado,
New Mexico, Utah, and Wyoming)
while still maintaining water deliveries
to the states of the Lower Basin
(Arizona, California, and Nevada) as
required by the Colorado River Compact
Act of 1922. The CRSP hydroelectric
facility providing Ancillary Services for
WALC is the Glen Canyon power plant
on the Colorado River.
Network Integration Transmission
Service
The formula rates for NITS were
initially placed into effect by Rate Order
No. WAPA–127 on November 21, 2006,
and were effective through June 30,
2011. These formula rates were then
extended by Rate Order No. WAPA–152
through September 30, 2013. The
formula rates being placed into effect by
Rate Order No. WAPA–151 will be
effective on October 1, 2011, and will
remain in effect until September 30,
2015, or until superseded. The formula
rate for CAP is being offered under a
separate Rate Order No. WAPA–124.
The formula rate methodology will
remain identical to those for P–DP and
AC Intertie.
The formula rates for NITS for P–DP
and AC Intertie are described in Rate
Schedules PD–NTS3 and INT–NTS3.
These formula rates will remain projectspecific under Rate Order No. WAPA–
151. The rates will subsequently be
recalculated every year, effective
October 1, based on the approved
formula and updated financial and load
data. DSWR will provide official notice
of changes in rates to customers prior to
October 1 of each year.
WALC Ancillary Services
The formula rates for WALC Ancillary
Service were initially placed into effect
by Rate Order No. WAPA–127 on July
1, 2006, and were effective through June
30, 2011.3 These rate schedules were
then extended by Rate Order No.
WAPA–152 through September 30,
2013.4 The rate schedules being placed
into effect by Rate Order No. WAPA–
151 will be effective on October 1, 2011,
and will remain in effect until
September 30, 2016, or until
superseded.
Western will offer seven ancillary
services pursuant to its Tariff. The seven
ancillary services are: (1) Scheduling,
system control, and dispatch service; (2)
reactive supply and voltage control
service; (3) regulation and frequency
response service; (4) energy imbalance
service; (5) spinning reserve service; (6)
supplemental reserve service; and (7)
generator imbalance service. The
formula rates for ancillary services are
designed to recover only the costs
incurred for providing the service(s).
The formula rates for ancillary services
are described in Rate Schedules DSW–
SD3, DSW–RS3, DSW–FR3, DSW–EI3,
DSW–SPR3, DSW–SUR3, and DSW–
GI1. The rates will subsequently be
recalculated every year, effective
October 1, based on the approved
formula and updated financial and load
data. DSWR will provide official notice
of changes in rates to customers prior to
October 1 of each year.
Comparison of Existing and Provisional
Formula Rates for Network Integration
Transmission Service and WALC
Ancillary Services
The following table displays a
comparison of existing rates and
provisional rates for FY 2012. These
rates will be recalculated annually
based on updated financial and load
data.
FORMULA RATE COMPARISON TABLE
Existing formula rates
effective October 1, 2010
(FY 2011)
Provisional formula rates
effective October 1, 2011
(FY 2012)
Customer’s Load Ratio Share times onetwelfth of the Annual Transmission Revenue Requirement.
$37,912,005 .....................................................
$27,476,836 .....................................................
$26.85/tag Maximum cost per tag ...................
$0.058/kW-month .............................................
Customer’s Load Ratio Share times onetwelfth of the Annual Transmission Revenue Requirement.
$38,572,394.
$27,906,604.
$30.33/Schedule Maximum cost per Schedule.
$0.063/kW-month.
0.2481 Mills/kWh (Energy based) ....................
$0.2327/kW-month (Capacity based).
+/¥ 0 to 1.5%; Min: 0 to 5 MW ......................
100% return .....................................................
..........................................................................
+/¥ 0 to 1.5%; Min: 0 to 4 MW.
100% return.
+/¥ 1.5% to 7.5%; Min: 4 to 10 MW
110% return .....................................................
90% return .......................................................
N/A ...................................................................
110% return.
90% return.
>+/¥7.5%, Min: >10MW.
Class of service
mstockstill on DSK4VPTVN1PROD with NOTICES
Network Integration Transmission Service:
P–DP ...........................................................
AC Intertie ...................................................
Scheduling, System Control, and Dispatch
Services DSW–SD3.
Reactive Supply and Voltage Control from Generation Sources Services DSW–RS3.
Regulation and Frequency Response Service
DSW–FR3.
Energy Imbalance Service:
DSW–EI3.
On-Peak Hours ...........................................
Energy within Bandwidth .............................
On-Peak Hours ...................................................
Energy outside Bandwidth Deliveries:
Under ...........................................................
Over .............................................................
On-Peak Hours ...................................................
3 See 71 FR 36322 (June 26, 2006). FERC
confirmed and approved these rates on November
21, 2006 (117 FERC ¶ 62,172).
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4 WAPA–152, Extension of Rate Order No.
WAPA–127 through September 30, 2013. 76 FR
28767, May 18, 2011.
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Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
59687
FORMULA RATE COMPARISON TABLE—Continued
Existing formula rates
effective October 1, 2010
(FY 2011)
Class of service
Certification of Rates
mstockstill on DSK4VPTVN1PROD with NOTICES
Western’s Administrator certified that
the Provisional Formula Rates for NITS
and WALC Ancillary Services under
Rate Schedules PD–NTS3, INT–NTS3,
DSW–SD3, DSW–RS3, DSW–FR3,
The customer’s load-ratio share is the
ratio of its network load to the Project’s
Transmission System Total Load at the
Project’s system peak. This is calculated
on a rolling 12-month basis (12
coincident peak average or 12-cp).
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..........................................................................
..........................................................................
+1.5% to ¥3% .................................................
125% return.
75% return.
+7.5% to ¥3%.
Min: 5 MW ........................................................
Min: 2 MW ........................................................
100% return .....................................................
Min: 5 MW.
Min: 2 MW.
100% return.
110% return .....................................................
60% return .......................................................
110% return.
60% return.
N/A ...................................................................
..........................................................................
..........................................................................
N/A.
..........................................................................
..........................................................................
..........................................................................
N/A.
..........................................................................
..........................................................................
N/A ...................................................................
+/¥ 0 to 1.5%; Min: 0 to 4 MW.
100% return.
+/¥ 1.5% to 7.5%; Min: 4 to 10 MW.
..........................................................................
..........................................................................
..........................................................................
Min: 5 MW.
Min: 2 MW.
100% return.
..........................................................................
..........................................................................
110% return.
60% return.
None available on long-term basis; market
price, if available, on short-term basis, or on
request. Western will procure at cost plus
10% administrative charge.
None available on long-term basis; market
price, if available, on short-term basis, or on
request. Western will procure at cost plus
10% administrative charge.
110% return.
90% return.
> +/¥ 7.5%, Min: > 10 MW
125% return.
75% return.
+7.5% to ¥3%.
DSW–EI3, DSW–SPR3, DSW–SUR3, and
DSW–GI1 are the lowest possible rates
consistent with sound business
principles. The Provisional Formula
Rates were developed following
administrative policies and applicable
laws.
Network Integration Transmission
Service Discussion
Network Integration Transmission
Service Comments
WALC Ancillary Services Discussion
DSWR received three comment letters
during the Public Consultation and
Comment Period. No comments
provided related specifically to NITS.
The commenters requested an extension
to the public comment period, and
Western responds to these comments
later in this document.
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The monthly charge for NITS will be
as follows:
Pursuant to Western’s Tariff, WALC
will offer seven Ancillary Services. Two
of these services, Scheduling, System
Control and Dispatch (SSCD) Service
and Reactive Supply and Voltage
Control (VAR Support) from Generation
or Other Sources Service, are services
that the Transmission Provider is
required to provide (or offer to arrange
E:\FR\FM\27SEN1.SGM
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EN27SE11.022</GPH>
Deliveries:
Under ...........................................................
Over .............................................................
Off-Peak Hours ...................................................
Deliveries:
Under ...........................................................
Over .............................................................
Energy within Bandwidth Energy outside Bandwidth.
Deliveries:
Under ...........................................................
Over .............................................................
Generator Imbalance Service:
DSW–GI1
On-Peak Hours ...................................................
Energy within Bandwidth ....................................
On-Peak Hours Energy outside bandwidth ........
Deliveries ............................................................
Under ...........................................................
Over .............................................................
On-Peak Hours ...................................................
Deliveries ............................................................
Under ...........................................................
Over .............................................................
Off-Peak Hours ...................................................
Deliveries:
Under ...........................................................
Over .............................................................
Energy within Bandwidth ....................................
Energy outside Bandwidth
Deliveries:
Under ...........................................................
Over ....................................................................
Operating Reserves:
Spinning Service DSW–SPR3 and Supplemental Service DSW–SUR3.
Provisional formula rates
effective October 1, 2011
(FY 2012)
59688
Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Reserve—Supplemental Reserve
Service, Generator Imbalance (GI)
Service, are services that the
Transmission Provider is required to
offer to provide to the Transmission
Customer. The Transmission Customer
is required to acquire these Ancillary
Services, either from the Transmission
Provider, from a third party, or by selfsupply.
Western’s annual revenue
requirement (numerator) for SSCD
Service primarily consists of costs for
scheduling and will not include costs
for system control and dispatch. Those
costs are contained in other rates. The
denominator is the yearly total of daily
schedules. This is a change from the
current methodology in that WALC
previously counted tags at the time of
creation and any subsequent
modifications where WALC is listed as
a Transmission Provider and as a
Balancing Authority.
Under Schedule 1 of Western’s Tariff,
‘‘this service can be provided only by
the operator of the Control Area in
which the transmission facilities used
for transmission service are located.’’ In
cases where the Transmission Provider
directly provides the service as the
Control Area operator, the costs for this
service are included in the respective
Federal transmission rate. In cases
where the Transmission Provider on the
schedule is not the control area operator
and the entities are not taking
transmission service over the Federal
transmission system in WALC, unless
other arrangements are made with
WALC, the SSCD rate will be
applicable.
Western’s total annual revenue
requirement (numerator) for VAR
Support Service captures the percentage
of annual generation costs that are used
for this service. That percentage is based
on the nameplate power factor for the
generating units. The annual generation
costs are multiplied by the complement
of the power factor. The denominator is
a measure of the loads requiring this
service. Western uses long-term firm
transmission reservation data for both
CRSP and P–DP, and subtracts for those
customers that provide VAR Support
Service to the Balancing Authority.
There is no change to the rate formula
methodology.
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Formula Rate for Scheduling, System
Control, and Dispatch Service
The formula for SSCD Service is as
follows:
Formula Rate for Reactive Supply and
Voltage Support Control Service From
Generation or Other Sources Service
E:\FR\FM\27SEN1.SGM
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EN27SE11.024</GPH>
The formula for VAR Support Service
is as follows:
EN27SE11.023</GPH>
mstockstill on DSK4VPTVN1PROD with NOTICES
with the Balancing Authority operator)
and the Transmission Customer is
required to purchase.
The other five Ancillary Services,
Regulation and Frequency Response
(Regulation) Service, Energy Imbalance
(EI) Service, Operating Reserves—
Spinning Reserve and Operating
Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Formula Rate for Regulation and
Frequency Response Service
59689
1. Load-based Assessment. The
formula is as follows:
Western’s annual revenue
requirement (numerator) for Regulation
Service captures the plant, operation
and maintenance (O&M) costs,
purchases of a regulation product, and
purchases of power in support of the
units’ ability to regulate. The load
(denominator) applies to all entities’
auxiliary load (total less Federal
entitlements, including behind the
meter generation rating, or if available,
hourly data if generation is
synchronized to the system), plus the
nameplate capacity of intermittent
resources serving load in the WALC.
Application of Regulation Service to
intermittent resources serving load
inside WALC is a change from the
current methodology. Western retains
the existing requirement for providing
regulation service for non-conforming
loads. A non-conforming load is defined
as a single plant or site with a regulation
capacity requirement of 5 MWs or
greater on a recurring basis and 10
percent or greater of its average load.
Regulation Service for non-conforming
loads, as determined by Western, will
continue to be delineated in a Service
Agreement and charged an amount that
includes the cost to procure the service
and the additional amount required to
monitor and supply the service. The
denominator is a change from the
existing formula rate methodology in
that it was energy-based rather than
capacity (load)-based.
1. Self-Provision Using Automatic
Generation Control Assessment
Western allows entities with
automatic or manual generation control
to self-provide for all or a portion of
their loads. Typically, entities with
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generation control are known as SubBalancing Authorities (SBA) and should
meet all of the following criteria:
a. Have a well-defined boundary, with
WALC-approved revenue-quality
metering, accurate as defined by North
American Electric Reliability
Corporation (NERC), to include MW
flow data availability at 6-second or
smaller intervals.
b. Have Automatic Generation Control
capability.
c. Demonstrate Regulation Service
capability as determined by Western.
d. Execute a contract with the WALC
BA to:
i. Provide all requested data to the
WALC BA.
ii. Meet SBA Error Criteria as
described below.
Self-provision is to be measured by
use of the entity’s 1-minute average
Area Control Error (ACE) to determine
the amount of self-provision. The
assessment is calculated every hour and
the value of ACE is used to calculate the
Regulation Service charges as follows:
a. If the entity’s 1-minute average ACE
is ≤ 0.5 percent of the entity’s hourly
average load, no Regulation Service
charges are assessed by WALC.
b. If the entity’s 1-minute average ACE
is ≥ 1.5 percent of the entity’s hourly
average load, WALC assesses Regulation
Service charges to the entity’s entire
load, using the Load-based rate.
c. If the entity’s 1-minute average ACE
is > 0.5 percent of the entity’s hourly
average load, but < 1.5 percent of the
entity’s hourly average load, WALC
assesses Regulation Service charges
based on linear interpolation of zero
charge and full charge, using the Loadbased rate.
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d. Western will monitor the entity’s
self-provision on a regular basis. If
Western determines that the entity has
not been self-regulating, Western will,
upon notification, employ the loadbased assessment methodology
described in No. 1 above.
Alternative Arrangements
1. Exporting Intermittent Resource
Requirement: An entity that exports the
output from an intermittent generator to
another balancing authority will be
required to dynamically meter or
dynamically schedule that resource out
of WALC to another balancing authority
unless arrangements, satisfactory to
Western, are made for that entity to
acquire this service from a third-party or
self-supply (as outlined below). An
intermittent generator is one that is
volatile and variable due to factors
beyond direct operational control and,
therefore, is not dispatchable.
2. Self- or Third-party Supply:
Western may allow an entity to supply
some or all of its required regulation or
contract with a third party to do so,
even without well-defined boundary
metering. This entity must have revenue
quality metering at every load and
generation point, and accuracy as
defined by NERC, to include MW flow
data availability at 6-second or smaller
intervals. WALC will evaluate the
entity’s metering, telecommunications
and regulating resource, as well as the
required level of regulation, and
determine whether the entity qualifies
to self-supply under this provision. If
approved, the entity is required to enter
into a separate contract with Western,
which will specify the terms of the selfsupply agreement.
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The formula for Regulation Service
will have two different applications:
59690
Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Formula Rate for Energy Imbalance
Service
WALC provides EI Service using a
bandwidth and penalty structure with
three deviation bands as follows:
1. On-peak hours +/¥ 0 percent to 1.5
percent of metered load (0 to 4 MW
minimum) with no penalty within
bandwidth.
2. On-peak hours +/- 1.5 percent to
7.5 percent of metered load (4 to 10 MW
minimum) with 110 percent return for
under-deliveries and 90 percent return
for over-deliveries.
3. On-peak hours >7.5 percent of
metered load (>10 MW minimum) with
125 percent return for under-deliveries
and 75 percent for over-deliveries.
Due to Balancing Authority operating
constraints in the off-peak hours, WALC
will continue to treat on-peak and offpeak hour imbalances differently. For
off-peak hour imbalances, WALC is
proposing to continue using the
following bandwidth structure in those
hours but with an expanded bandwidth
for over-delivery:
Off-peak hours 7.5 percent to ¥3
percent of metered load (2 MW
minimum for over-deliveries; 5 MW
minimum for under-deliveries) with 110
percent return for under-delivery, 60
percent return for over-delivery.
For off-peak hour imbalances, WALC
is proposing an imbalance and penalty
structure very similar to the existing
structure.
Service under Rate Schedule DSW–EI3,
but not both, unless the imbalances
aggravate rather than offset each other.
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Comments
DSWR received three comment letters
during the Public Consultation and
Comment Period. The comment
expressed in these letters has been
paraphrased where appropriate, without
compromising the meaning of the
comment.
Comment: All three commenters
requested a 30-day extension to the
public consultation and comment
period ending May 16, 2011.
Response: Western recognizes the
request for an extension to the comment
period. In order to make the rates
effective October 1, however, Western
must issue the order confirming,
approving and placing the rates into
effect on an interim basis. Western
provided opportunities for the
customers and interested parties to
participate and comment within the 90day consultation and comment period.
Prior to initiation of the formal
comment period, Western also held
informal discussions with customers
and interested parties, providing for
initial consultation and comments
beginning in September 2010. Western
believes that these comment
opportunities were sufficient, and the
requesters did not provide sufficient
justification of the need for an
extension.
Submission to the FERC
Formula Rates for Operating
Reserves—Spinning and Supplemental
Services
WALC has no long-term Reserves
available for sale. At a customer’s
request, WALC may attempt to purchase
and pass through the cost of Reserves,
plus 10 percent administrative costs.
This represents no change to the
existing methodology.
mstockstill on DSK4VPTVN1PROD with NOTICES
Formula Rates for Generator Imbalance
Service
WALC has not had a separate rate
schedule or provided this service in the
past. The formula rate for GI Service
will be identical to that of EI Service,
with the following exceptions:
1. Bandwidths will be calculated as a
percentage of metered generation, since
there is no load.
2. Intermittent resources are exempt
from the outer bandwidth. All
deviations greater than 1.5 percent of
metered generation in the on-peak hours
will be subject only to a 10 percent
penalty.
In any hour, WALC may charge a
customer a penalty for either GI Service
under Rate Schedule DSW–GI1 or EI
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Availability of Information
All brochures, studies, comments,
letters, memorandums and other
documents that Western used to
develop the Provisional Formula Rates
are available for inspection and copying
at the Desert Southwest Customer
Service Region Office, located at 615
South 43rd Avenue, Phoenix, Arizona
or on its Web site at https://
www.wapa.gov/dsw/pwrmkt/ancsrv/
ancsrv.htm.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National
Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321 et seq.), Council
on Environmental Quality Regulations
(40 CFR parts 1500–1508), and DOE
NEPA Regulations (10 CFR part 1021),
Western has determined that this action
is categorically excluded from preparing
an environmental assessment or an
environmental impact statement.
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
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The Provisional Formula Rates herein
confirmed, approved, and placed into
effect on an interim basis, together with
supporting documents, will be
submitted to FERC for confirmation and
final approval.
Order
In view of the foregoing and under the
authority delegated to me, I confirm and
approve on an interim basis, effective on
the first full billing period on or after
October 1, 2011, formula rates for
Network Integration Transmission
Service and WALC Balancing Authority
Ancillary Services under Rate
Schedules PD–NTS3, INT–NTS3, DSW–
SD3, DSW–RS3, DSW–FR3, DSW–EI3,
DSW–SPR3, DSW–SUR3, and DSW–
GI1. By this Order, I am placing the
rates into effect in less than 30 days to
meet contract deadlines, to avoid
financial difficulties and to provide a
rate for a new service. These rate
schedules shall remain in effect on an
interim basis, pending FERC’s
confirmation and approval of them or
substitute formula rates on a final basis
through September 30, 2016.
Dated: September 19, 2011.
Daniel B. Poneman,
Deputy Secretary.
Network Integration Transmission
Service on the Parker-Davis Project
Effective
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
Available
In the area served by the Parker-Davis
Project (P–DP) transmission facilities.
Applicable
To Network Integration Transmission
Service (Network Service) customers
where capacity and energy are supplied
to the P–DP transmission system from
designated resources, transmitted
subject to the availability of the
transmission capacity, and delivered,
less losses, to designated points of
delivery on the P–DP system specified
in the network service agreement.
Character and Conditions of Service
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points of delivery
established by the network service
agreement.
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Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Revenue Requirement
The projected annual revenue
requirement allocated to transmission
for FY 2012 for the P–DP is $38,572,394.
Based on updated financial and load
data, a recalculated revenue
requirement will go into effect on
October 1 of each year during the
effective rate schedule period.
Adjustment for Ancillary Services
Network Service is offered under
Western’s Open Access Transmission
Tariff, and contractors are responsible
for all ancillary services set forth in the
applicable rate schedules specified in
the customer’s network service
agreement.
Adjustment for Losses
Capacity and energy losses incurred
in connection with the transmission and
delivery of power and energy under this
rate schedule shall be supplied by the
customer in accordance with the
network service agreement.
Modifications
The Desert Southwest Customer
Service Region may modify the charges
for Network Service upon written notice
to the transmission customer. Any
change to the charges to the
transmission customer for Network
Service shall be included in a revision
to this rate schedule promulgated under
applicable Federal laws, regulations,
and policies, and made part of the
applicable network service agreement.
Network Integration Transmission
Service on the Pacific Northwest-Pacific
Southwest Intertie Project
mstockstill on DSK4VPTVN1PROD with NOTICES
Effective
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
The numerator captures the personnel
costs associated with providing
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16:35 Sep 26, 2011
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Available
Within the marketing area serviced by
the Pacific Northwest-Pacific Southwest
Intertie Project (Intertie) transmission
facilities.
Applicable
To Network Integration Transmission
Service (Network Service) customers
where capacity and energy are supplied
to the Intertie from designated
resources, transmitted subject to the
availability of the transmission capacity,
and delivered, less losses, to designated
points of delivery on the Intertie system
specified in the network service
agreement.
Character and Conditions of Service
Alternating current at 60 hertz, threephase, delivered and metered at the
voltages and points of delivery
established by the network service
agreement.
Monthly Rate
Network Service Charge: Each
contractor shall be billed an amount
based on the contractor’s load ratio
share times one-twelfth of the Intertie
annual revenue requirement. The load
ratio share will be determined by the
contractor’s coincidental peak load
averaged with the coincidental peak
loads of the previous 11 months divided
by the average Intertie system peak for
the same time period.
Revenue Requirement
The projected annual revenue
requirement allocated to transmission
for FY 2012 for the Intertie is
$27,906,604. Based on updated financial
and load data, a recalculated revenue
requirement will go into effect on
October 1 of each year during the
effective rate schedule period.
Adjustments for Ancillary Services
Network Service is offered under the
Open Access Transmission Tariff and
contractors are responsible for all
ancillary services set forth in the
applicable rate schedules specified in
the customer’s network service
agreement.
Adjustments for Losses
Capacity and energy losses incurred
in connection with the transmission and
Scheduling Service, as well as related
costs, including annual capital costs
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delivery of power and energy under this
rate schedule shall be supplied by the
customer in accordance with the
network service agreement.
Modifications
The Desert Southwest Customer
Service Region may modify the charges
for Network Service upon written notice
to the transmission customer. Any
change to the charges to the
transmission customer for Network
Service shall be included in a revision
to this rate schedule promulgated under
applicable Federal laws, regulations,
and policies and made part of the
applicable network service agreement.
Scheduling, System Control, and
Dispatch Service
Effective
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
Available
In the area served by the Western
Area Lower Colorado (WALC) Balancing
Authority (BA).
Applicable
Unless other arrangements are made
with WALC, to transactions with
entities not taking transmission service
over the Federal transmission system in
WALC, where WALC is listed as the
Transmission Provider. For entities
taking transmission service from
Western in the WALC BA, the
Scheduling, System Control, and
Dispatch Service (Scheduling Service)
charge is included in the transmission
rate.
Character of Service
Scheduling Service is required to
schedule the movement of power
through, out of, within, or into the
WALC BA.
Formula Rate
The charges for Scheduling Service
are to be based on the following formula
rate where the Rate per Schedule equals:
associated with providing Scheduling
Service. The denominator captures the
E:\FR\FM\27SEN1.SGM
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EN27SE11.026</GPH>
Monthly Rate
Network Service Charge: Each
contractor shall be billed an amount
based on the contractor’s load ratio
share times one-twelfth of the P–DP
annual revenue requirement. The load
ratio share will be determined by the
contractor’s coincidental peak load
averaged with the coincidental peak
loads of the previous 11 months divided
by the average P–DP system peak for the
same time period.
59691
59692
Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
total number of daily schedules per
year.
and made part of the applicable service
agreement.
Rate:
The rate charged for Scheduling
Service is $30.33 per Schedule. This
rate is based on FY 2010 financial and
load data, and will be in effect October
1, 2011, through September 30, 2012.
Based on updated financial and load
data, a recalculated rate will go into
effect on October 1 of each year during
the effective rate period.
The Desert Southwest Customer
Service Region’s charge for Scheduling
Service may be modified upon written
notice to the customer, and any change
to the charges for the service shall be
included in a revision to this rate
schedule promulgated under applicable
Federal laws, regulations, and policies
Reactive Supply and Voltage Control
From Generation Sources Service
The revenue requirement for the
service is the sum of the service for each
generation project in WALC, determined
by multiplying the generation revenue
requirement by one minus the power
factor for the supplying plants.
The load requiring Voltage Support
Service equals long-term firm
transmission reservation data for both
P–DP and that portion of Colorado River
Storage Project (CRSP) located in
WALC, and subtracts for those
reservations by entities with generation
agreements to supply Voltage Support
Service to WALC.
Regulation And Frequency Response
Service
The charges for Regulation Service are
outlined below.
Effective
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
Types
The rate to be in effect October 1,
2011, through September 30, 2012, is:
Monthly: $0.063/kW-month.
Weekly: $0.015/kW-week.
Daily: $0.0021/kW-day.
Hourly: $0.0870 mills/kWh.
This rate is based on the above
formula and on FY 2010 financial and
load data, and will be adjusted annually
as new data becomes available and will
go into effect October 1 of each year.
The Desert Southwest Customer Service
Region (DSWR) charges for Voltage
Support Service may be modified upon
written notice to the customer. Any
change to the charges for Voltage
Support Service shall be included in a
revision to the rate schedule
promulgated under applicable Federal
laws, regulations, and policies and
made part of the applicable service
agreement. DSWR shall charge the
customer in accordance with the rate
then in effect.
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16:35 Sep 26, 2011
Jkt 223001
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
Available
In the area served by the Western
Area Lower Colorado (WALC) Balancing
Authority (BA).
Applicable
To all customers in the WALC BA
taking transmission service under
Western’s Open Access Transmission
Tariff. The customer must purchase this
Applicable
Regulation and Frequency Response
Service (Regulation Service) is
necessary to provide for the continuous
balancing of resources, generation and
interchange with load, and for
maintaining scheduled interconnection
frequency at 60 cycles per second (60
Hz). Regulation Service is accomplished
by committing on-line generation whose
output is raised or lowered as necessary,
predominantly through the use of
automatic generation control
equipment, to follow the moment-bymoment changes in load. The obligation
to maintain this balance between
resources and load lies with the Western
Area Lower Colorado (WALC) Balancing
Authority (BA) operator. Customers
(Federal transmission customers and
customers on others’ transmission
systems within WALC) with conforming
loads must purchase this service from
WALC or make alternative comparable
arrangements to satisfy their Regulation
Service obligations. Customers with
non-conforming loads will be charged
differently as stated below. A nonconforming load is defined as a single
plant or site with a regulation capacity
requirement of 5 megawatts (MW) or
greater on a recurring basis and whose
capacity requirement is equal to 10
percent or greater of its average load.
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Sfmt 4703
Character of Service
Voltage Support Service is needed to
maintain transmission voltages on all
transmission facilities within acceptable
limits. To accomplish this, generation
facilities under the control of the WALC
BA are operated to produce or absorb
reactive power.
Formula Rate
The charges for Voltage Support
Service are based on the following
formula rate:
There are two different applications of
this Formula Rate:
1. Load-based Assessment: The rate
for the load-based assessment is
reflected in the ‘‘Formula Rate’’ section
and is applied to entities that take
regulation service from the WALC BA.
This load-based rate is assessed on an
entity’s auxiliary load (total metered
load less Federal entitlements,
including behind the meter generation
rating, or if available, hourly data if
generation is synchronized to the
system) and is also applied to the
installed nameplate capacity of all
intermittent generators within WALC.
2. Self-Provision Assessment: Western
allows entities with automatic or
manual generation control to selfprovide for all or a portion of their
loads. Typically, entities with
generation control are known as SubBalancing Authorities (SBA) and should
meet all of the following criteria:
a. Have a well-defined boundary, with
WALC-approved revenue-quality
metering, accurate as defined by NERC,
to include MW flow data availability at
6-second or smaller intervals.
b. Have Automatic Generation Control
capability.
c. Demonstrate Regulation Service
capability.
d. Execute a contract with the WALC
BA to:
i. Provide all requested data to the
WALC BA.
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mstockstill on DSK4VPTVN1PROD with NOTICES
Rate
Effective
service from WALC, unless the entity
has a separate generation agreement to
supply Reactive Supply and Voltage
Control from Generation Sources
Service (Voltage Support Service) to
WALC.
Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Energy Imbalance Service
Load-Based Rate
Effective
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
The rate to be in effect October 1,
2011, through September 30, 2012, for
Nos. 1 and 2, as described above in the
‘‘Types’’ section of this rate schedule is:
Monthly: $0.2327/kW-month.
Weekly: $0.0536974/kW-week.
Daily: $0.0076500/kW-day.
Hourly: $0.0003188/kWh.
This rate is based on the above
formula and will be revised annually
based on updated financial and load
data. The above Load-Base Rate applies
to conforming loads. Regulation Service
for non-conforming loads, as
determined by Western, must be
delineated in a service agreement, and
charged an amount that includes the
cost to procure the service and the
additional amount required to monitor
and supply this service.
WALC charges for Regulation Service
may be modified upon written notice to
customers. Any change to the
Regulation Service charges will be listed
in a revision to this rate schedule issued
under applicable Federal laws,
regulations, and policies and made part
of the applicable service agreement.
Western will charge customers under
the rate then in effect.
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Alternative Arrangements
Exporting Intermittent Resource
Requirement: An entity that exports the
output from an intermittent generator to
another balancing authority will be
required to dynamically meter or
dynamically schedule that resource out
of WALC to another balancing authority
unless arrangements, satisfactory to
Western, are made for that entity to
acquire this service from a third-party or
self-supply (as outlined below). An
intermittent generator is one that is
volatile and variable due to factors
Available
In the area served by the Western
Area Lower Colorado (WALC) Balancing
Authority (BA).
Applicable
To all customers receiving Energy
Imbalance Service from the Desert
Southwest Customer Service Region
(DSWR) for the WALC.
Character of Service
Provided when a difference occurs
between the scheduled and the actual
delivery of energy to a load located
within the WALC BA. The transmission
customer (Federal transmission
customers and customers on nonWestern transmission systems within
WALC BA) must either obtain this
service from WALC, or make alternative
comparable arrangements to satisfy its
Energy Imbalance Service obligation.
Western may charge a transmission
customer a penalty for either hourly
energy imbalances under this Schedule
DSW–EI3 or hourly generator
imbalances under Rate Schedule DSW–
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Fmt 4703
Sfmt 4703
beyond direct operational control and,
therefore, is not dispatchable.
Other Self- or Third-party Supply:
Western may allow an entity to supply
some or all of its required regulation or
contract with a third party to do so,
even without well-defined boundary
metering. This entity must have revenue
quality metering at every load and
generation point, accuracy as defined by
NERC, to include MW flow data
availability at 6-second (or smaller)
intervals. WALC will evaluate the
entity’s metering, telecommunications,
and regulating resource, as well as the
required level of regulation, and
determine whether the entity qualifies
to Self-supply under this provision. If
approved, the entity is required to enter
into a separate contract with Western,
which will specify the terms of the selfsupply agreement.
Formula Rate
GI1 for imbalances occurring during the
same hour, but not both, unless the
imbalances aggravate rather than offset
each other.
Formula Rate
WALC has established a multi-tiered
deviation bandwidth, based on the size
of deviation and whether the deviation
occurs in the on-peak or off-peak hours.
For on-peak hours the deviation bands
are as follows:
1. Deviations of plus or minus 1.5
percent of metered load, with a
minimum of 0 to 4 MW, either over or
under-delivery.
2. Deviations of plus or minus 1.5 to
7.5 percent of a customer’s metered
load, with a minimum of 4 to 10 MW,
either over or under-delivery.
3. Deviations of greater than plus or
minus 7.5 percent of metered load, with
a minimum of greater than 10 MW,
either over or under-delivery.
For off-peak deviations the deviation
band is 7.5 percent to a negative 3
percent of metered load, with a
minimum of 5 MW for under-deliveries
and 2 MW for over-deliveries. Normally,
there are four scenarios for Energy
Imbalance Service. They are: (1) Overdelivery within the bandwidth; (2)
under-delivery within the bandwidth;
(3) over-delivery outside the bandwidth;
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charge and full charge, using the loadbased rate.
d. Western monitors the entity’s selfprovision on a regular basis. If Western
determines that the entity has not been
attempting to self-regulate, Western
will, upon notification, employ the
load-based assessment methodology
described in No. 1 above.
Rates
mstockstill on DSK4VPTVN1PROD with NOTICES
ii. Meet SBA Error Criteria as
described below.
Self-provision is measured by use of
the entity’s 1-minute average Area
Control Error (ACE) to determine the
amount of self-provision. The
assessment is calculated every hour, and
the value of ACE is used to calculate the
Regulation Service charges as follows:
a. If the entity’s 1-minute average ACE
is ≤ 0.5 percent of the entity’s hourly
average load, no Regulation Service
charges is assessed by WALC.
b. If the entity’s 1-minute average ACE
is ≥ 1.5 percent of the entity’s hourly
average load, WALC assesses Regulation
Service charges to the entity’s entire
load, using the load-based rate.
c. If the entity’s 1-minute average ACE
is > 0.5 percent of the entity’s hourly
average load, but < 1.5 percent of the
entity’s hourly average load, WALC
assesses Regulation Service charges
based on linear interpolation of zero
59693
59694
Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Imbalance Service shall be included in
a revision to this schedule promulgated
pursuant to applicable Federal laws,
regulations, and policies and made part
of the applicable service agreement. The
DSWR shall charge the customer in
accordance with the rate then in effect.
Operating Reserve—Supplemental
Reserve Service
Within the Bandwidth
For Energy Imbalance within the
bandwidth for both on-peak and offpeak, settlement between the existing
customer and Western will be 100
percent of the energy imbalance. In lieu
of financial settlement, equal to 100
percent of a weighted index price
(described below), Western, at its
discretion, may accept settlement in
energy.
mstockstill on DSK4VPTVN1PROD with NOTICES
and (4) under-delivery outside the
bandwidth. There are different penalties
and bandwidths imbalances that occur
during on-peak and off-peak hours.
During periods of BA operating
constraints, Western reserves the right
to eliminate credits for over-deliveries.
Operating Reserve—Spinning Reserve
Service
Available
Effective
In the area served by the Western
Area Lower Colorado (WALC) Balancing
Authority (BA).
Outside the Bandwidth
For that portion of the customer’s
energy imbalance that is outside the
bandwidth during on-peak hours, the
settlement will be as follows:
1. For deviations of plus or minus 0
to 7.5 percent of metered load, with a
0 to 10 MW minimum, the settlement is
110 percent of the energy imbalance for
under-deliveries and 90 percent of the
energy imbalance for over-deliveries.
2. For deviations of greater than plus
or minus 7.5 percent of metered load,
with a minimum exceeding 10 MW,
settlement is 125 percent of the energy
imbalance for under-deliveries and 75
percent for over-deliveries.
In lieu of financial settlement,
Western may, at its discretion accept
settlement in energy. Financial
settlement will be equal to a weighted
index price (described below). For onpeak deviations described above,
settlement will be 110 percent of the
weighted index price for underdeliveries, and 90 percent in the first
tier. For on-peak deviations in the
second tier, financial settlement will be
equal to 125 percent of the weighted
index price for under-deliveries and 75
percent of the weighted index price for
over-deliveries. For deviations in the
off-peak, settlements will be 110 percent
of the weighted index price for underdeliveries, and 60 percent of the
weighted index price for over-deliveries.
For financial settlement of transactions,
the index used to calculate the
settlement will be the Dow Jones Palo
Verde average monthly index or an
index identified on Western’s Open
Access Same-time Information System
at the beginning of each fiscal year.
Settlement for the hourly deviations
will occur on a monthly basis. The
Energy Imbalance Service compensation
may be modified upon written notice to
the customer. Any change to the
customer compensation for Energy
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The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
Available
Effective
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
Applicable
In the area served by the Western
Area Lower Colorado (WALC) Balancing
Authority (BA).
To all customers receiving
supplemental reserve service from the
Desert Southwest Customer Service
Region (DSWR) for the WALC BA.
Applicable
Character of Service
To all customers receiving spinning
reserve service from the Desert
Southwest Customer Service Region
(DSWR) for the WALC BA.
Supplemental reserve service
(Supplemental Service) is needed to
serve load in the event of a system
contingency; however, it is not available
immediately to serve load.
Supplemental Service may be provided
by generating units that can be
synchronized to the system within 10
minutes and loaded within 30 minutes.
The transmission customer must either
purchase this service from the Western
WALC BA, or make alternative
comparable arrangements, satisfactory
to Western, to meet its Supplemental
Service requirements.
Character of Service
Spinning reserve service (Spinning
Service) is needed to serve load
immediately in the event of a system
contingency. Spinning Service may be
provided by generating units that are
on-line and loaded at less than
maximum output. The transmission
customer must either purchase this
service from the Western WALC BA, or
make alternative comparable
arrangements, satisfactory to Western, to
meet its Spinning Service requirements.
Formula Rate
Spinning Service will not be available
from DSWR resources on a long-term
basis. If a customer cannot self-supply
or purchase this service from another
provider, Western may obtain the
Spinning Service on a pass-through cost
basis at market price, plus a charge that
covers the cost of procuring and
supplying the service. The transmission
customer will be responsible for the
transmission service to get Spinning
Service to the designated point of
delivery.
Cost for Spinning Service = market
price + cost to procure service. The
Operating Reserve-Spinning Reserve
Service compensation may be modified
upon written notice to the customer.
Any change to the customer
compensation for Spinning Reserve
Service shall be included in a revision
to this schedule promulgated pursuant
to applicable Federal laws, regulations,
and policies and made part of the
applicable service agreement. The
DSWR shall charge the customer in
accordance with the rate then in effect.
PO 00000
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Fmt 4703
Sfmt 4703
Formula Rate
Supplemental Service will not be
available from DSWR resources on a
long-term basis. If a customer cannot
self-supply or purchase this service
from another provider; Western may
obtain the Supplemental Service on a
pass-through cost basis at market price,
plus a charge that covers the cost of
procuring and supplying the service.
The transmission customer will be
responsible for the transmission service
to get Supplemental Service to the
designated point of delivery.
Cost for Supplemental Service =
market price + cost to procure service.
The Operating Reserve-Supplemental
Reserve Service compensation may be
modified upon written notice to the
customer. Any change to the customer
compensation for Supplemental Reserve
Service shall be included in a revision
to this schedule promulgated pursuant
to applicable Federal laws, regulations,
and policies and made part of the
applicable service agreement. The
DSWR shall charge the customer in
accordance with the rate then in effect.
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Federal Register / Vol. 76, No. 187 / Tuesday, September 27, 2011 / Notices
Generator Imbalance Service
Effective
The first day of the first full billing
period beginning on or after October 1,
2011, through September 30, 2016.
Available
In the area served by the Western
Area Lower Colorado (WALC) Balancing
Authority (BA).
Applicable
To all customers receiving Generator
Imbalance Service from the Desert
Southwest Customer Service Region
(DSWR) for the WALC.
mstockstill on DSK4VPTVN1PROD with NOTICES
Character of Service
Generator Imbalance Service is
provided when a difference occurs
between the output of a generator
located within the Transmission
Provider’s BA and a delivery schedule
from that generator to (1) Another BA,
or (2) a load within the Transmission
Provider’s BA over a single hour.
Western will offer this service, to the
extent it is feasible to do so from its own
resources or from resources available to
it, when Transmission Service is used to
deliver energy from a generator located
with its BA. The transmission customer
(Federal transmission customers and
customers on non-Western transmission
systems within WALC) must either
obtain this service from Western, or
make alternative comparable
arrangements, which may include use of
non-generation resources capable of
providing this service, satisfactory to
Western, to meet their Generator
Imbalance Service obligation. Western
may charge a transmission customer a
penalty for either hourly generator
imbalances under this Schedule DSW–
GI1 or hourly energy imbalances under
Rate Schedule DSW–EI3 for imbalances
occurring during the same, but not both,
unless the imbalances aggravate rather
than offset each other.
Intermittent generators serving load
outside WALC will be required to
dynamically schedule or dynamically
meter their generation to another BA
unless arrangements, satisfactory to
Western, are made for that entity to
acquire this service from a third-party.
An intermittent resource, for the limited
purpose of these rate schedules is an
electric generator that is not
dispatchable and cannot store its fuel
source, and therefore, cannot respond to
changes in demand or respond to
transmission security constraints.
Formula Rate
WALC has established a multi-tiered
deviation bandwidth, based on the size
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Jkt 223001
of deviation and whether the deviation
occurs in the on-peak or off-peak hours.
The magnitude of all deviations will be
based on metered generation. For onpeak hours the deviation bands are as
follows:
1. Deviations of plus or minus 1.5
percent of the scheduled transaction,
with a minimum of 0 to 4 MW;
2. Deviations of plus or minus 1.5 to
7.5 percent of the scheduled transaction,
with a minimum 4 to 10 MW; and
3. Deviations of greater than plus or
minus 7.5 percent of the scheduled
transaction with a minimum of greater
than 10 MW.
For off-peak deviations the deviation
band is 7.5 percent to a negative 3
percent of the scheduled transaction,
with a minimum of 5 MW for underscheduling and 2 MW for overscheduling. Normally, there are four
scenarios for Generator Imbalance
Service. They are: (1) Over-generation
within the bandwidth; (2) undergeneration within the bandwidth; (3)
over-generation outside the bandwidth;
and (4) under-generation outside the
bandwidth. There are different penalties
and bandwidths for imbalances that
occur during on-peak and off-peak
hours. During periods of BA operating
constraints, Western reserves the right
to eliminate credits for over deliveries.
Additionally, parties who over or underdeliver may share in potential penalty
costs assessed against Western for
operation outside of established utility
guidelines.
Within the Bandwidth
For Generator Imbalance within the
bandwidth for both on-peak and offpeak, settlement will be 100 percent of
the imbalance. In lieu of financial
settlement, equal to 100 percent of a
weighted index price (described below),
Western, at its discretion, may accept
settlement in energy.
Outside the Bandwidth
For that portion of the customer’s
generator imbalance that is outside the
bandwidth during on-peak hours, the
settlement will be as follows:
1. For deviations of plus or minus 0
to 7.5 percent of a scheduled
transaction, with a 0 to 10 MW
minimum, the settlement is 110 percent
of the imbalance for under-generation
and 90 percent of the energy imbalance
for over-generation.
2. For deviations of greater than plus
or minus 7.5 percent of a scheduled
transaction, with a minimum exceeding
10 MW, settlement is 125 percent of the
imbalance for under-generation and 75
percent for over-generation.
PO 00000
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Fmt 4703
Sfmt 9990
59695
In lieu of financial settlement,
Western may, at its discretion accept
settlement in energy. Financial
settlement will be equal to a weighted
index price (described below). For onpeak deviations described above,
settlement will be 110 percent of the
weighted index price for undergeneration and 90 percent for overgeneration in the first tier. For on-peak
deviations in the second tier, financial
settlement will be equal to 125 percent
of the weighted index price for undergeneration and 75 percent of the
weighted index price for overgeneration. For deviations in the offpeak, settlement will be 110 percent of
the weighted index price for underdeliveries and 60 percent of the
weighted index price for over-deliveries.
As an exception, an intermittent
resource will be exempt from the outer
deviation band. All deviations greater
that 1.5 percent of metered generation in
the on-peak hours will be subject to a
10 percent penalty. An intermittent
resource, for the limited purpose of
these rate schedules, is an electric
generator that is not dispatchable and
cannot store its fuel source, and
therefore, cannot respond to changes in
demand or respond to transmission
security constraints.
For financial settlement of
transactions, the index used to calculate
the settlement will be the Dow Jones
Palo Verde average monthly index or an
index identified on the Open Access
Same-time Information System at the
beginning of each fiscal year. Settlement
for the hourly deviations will occur on
a monthly basis.
The generator imbalance service
compensation may be modified upon
written notice to the customer. Any
change to the customer compensation
for Generator Imbalance Service shall be
included in a revision to this schedule
promulgated pursuant to applicable
Federal laws, regulations, and policies
and made part of the applicable service
agreement. The DSWR shall charge the
customer in accordance with the rate
then in effect.
[FR Doc. 2011–24787 Filed 9–26–11; 8:45 am]
BILLING CODE 6450–01–P
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]]>Agencies
[Federal Register Volume 76, Number 187 (Tuesday, September 27, 2011)]
[Notices]
[Pages 59682-59695]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-24787]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Desert Southwest Customer Service Region--Western Area Lower
Colorado Balancing Authority--Rate Order No. WAPA-151
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Order Concerning Network Integration Transmission
Service and Ancillary Services Formula Rates.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy has confirmed and approved Rate
Order No. WAPA-151 and Rate Schedules PD-NTS3, INT-NTS3, DSW-SD3, DSW-
RS3, DSW-FR3, DSW-EI3, DSW-SPR3, DSW-SUR3, and DSW-GI1, placing the
Western Area Power Administration's (Western) Desert Southwest Customer
Service Region (DSWR) Parker-Davis Project (P-DP) Network Integration
Transmission Service (NITS), the AC Intertie Project (Intertie) NITS,
and the Western Area Lower Colorado (WALC) Balancing Authority
Ancillary Services formula rates into effect on an interim basis. The
Provisional Formula Rates will be in effect until the Federal Energy
Regulatory Commission (FERC) confirms, approves, and places them into
effect on a final basis or until they are replaced by other formula
rates. The Provisional Formula Rates will provide sufficient revenue to
pay all annual costs, including interest expense, and to repay power
investment within the allowable periods.
DATES: Rate Schedules PD-NTS3, INT-NTS3, DSW-SD3, DSW-RS3, DSW-FR3,
DSW-EI3, DSW-SPR3, DSW-SUR3, and DSW-GI1 will be placed into effect on
an interim basis on the first day of the first full billing period
beginning on or after October 1, 2011, and will remain in effect until
FERC confirms, approves, and places the rate schedules into effect on a
final basis for a 5-year period ending September 30, 2016, or until the
rate schedules are superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert
Southwest Customer Service Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, e-mail
jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved Rate
Schedules PD-NTS2, INT-NTS2, DSW-SD2, DSW-RS2, DSW-FR2, DSW-EI2, DSW-
SPR2, and DSW-SUR2 on June 26, 2006 (Rate Order No. WAPA-127, 71 FR
36332).\1\ These rates became effective on July 1, 2006, with an
expiration date of June 30, 2011. The rate schedules were extended
temporarily through September 30, 2013, under Rate Order No. WAPA-
152.\2\
---------------------------------------------------------------------------
\1\ FERC confirmed and approved Rate Order No. WAPA-127 on
November 21, 2006, in Docket No. EF06-5191. See United States
Department of Energy, Western Area Power Administration, 117 FERC ]
62,172.
\2\ WAPA-152, Extension of Rate Order No. WAPA-127 through
September 30, 2013. 76 FR 28767, May 18, 2011.
---------------------------------------------------------------------------
Desert Southwest Customer Service Region Network Integration
Transmission Service
Rate Schedules PD-NTS3 and INT-NTS3 for P-DP and Intertie NITS are
based on a revenue requirement that recovers the DSWR transmission
system costs for facilities associated with providing all transmission
services as well as the non-transmission facility costs allocated to
transmission service.
[[Page 59683]]
WALC Ancillary Services
Western will provide seven ancillary services pursuant to its
Tariff. These are: (1) Scheduling, System Control, and Dispatch Service
(DSW-SD3); (2) Reactive Supply and Voltage Control Service from
Generation or Other Sources Service (VAR Support) (DSW-RS3); (3)
Regulation and Frequency Response Service (Regulation) (DSW-FR3); (4)
Energy Imbalance Service (DSW-EI3); (5) Spinning Reserve Service (DSW-
SPR3); (6) Supplemental Reserve Service (DSW-SUR3); and (7) Generator
Imbalance Service (DSW-GI1). Rates for these services will be
recalculated each year to incorporate the most recent financial and
load information, and will be applicable to all NITS and WALC Ancillary
Services customers.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to the Administrator of Western; (2) the authority
to confirm, approve, and place such rates into effect on an interim
basis to the Deputy Secretary of Energy; and (3) the authority to
confirm, approve, and place into effect on a final basis, to remand or
to disapprove such rates to FERC. Existing Department of Energy
procedures for public participation in power rate adjustments (10 CFR
part 903) were published on September 18, 1985 (50 FR 37835).
Under Delegation Order Nos. 00-037.00 and 00-001.00C, 10 CFR part
903, and 18 CFR part 300, I hereby confirm, approve, and place Rate
Order No. WAPA-151, the proposed NITS and WALC Ancillary Services
formula rates, into effect on an interim basis. By this Order, I am
placing the rates into effect in less than 30 days to meet contract
deadlines, to avoid financial difficulties and to provide a rate for a
new service. The new Rate Schedules PD-NTS3, INT-NTS3, DSW-SD3, DSW-
RS3, DSW-FR3, DSW-EI3, DSW-SPR3, DSW-SUR3, and DSW-GI1 will be
submitted promptly to FERC for confirmation and approval on a final
basis.
Dated: September 19, 2011.
Daniel B. Poneman,
Deputy Secretary.
Deputy Secretary
Rate Order No. WAPA-151
In the Matter of: Western Area Power Administration
Rate Adjustment for the Desert Southwest Customer Service Region;
Network Integration Transmission Service and Ancillary Services; Order
Confirming, Approving, and Placing the Parker-Davis Project and AC
Intertie Project Network Integration Transmission Service and Western
Area Lower Colorado Ancillary Services Formula Rates Into Effect on an
Interim Basis
These Network Integration Transmission Service (NITS) and Western
Area Lower Colorado (WALC) Ancillary Services formula rates are
established pursuant to Section 302 of the Department of Energy (DOE)
Organization Act (42 U.S.C. 7152). This Act transferred to and vested
in the Secretary of Energy the power marketing functions of the
Secretary of the Department of the Interior and the Bureau of
Reclamation (Reclamation) under the Reclamation Act of 1902 (ch. 1093,
32 Stat. 388), as amended and supplemented by subsequent laws,
particularly section (c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)) and section 5 of the Flood Control Act of 1944 (16
U.S.C. 825s); and other acts that specifically apply to the project
involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to the Administrator of Western; (2) the authority
to confirm, approve, and place such rates into effect on an interim
basis to the Deputy Secretary of Energy, and (3) the authority to
confirm, approve, and place into effect on a final basis, to remand or
to disapprove such rates to the Federal Energy Regulatory Commission
(FERC). Existing DOE procedures for public participation in power rate
adjustments (10 CFR part 903) were published on September 18, 1985.
Acronyms and Definitions
As used in this Rate Order, the following acronyms/terms and
definitions apply:
------------------------------------------------------------------------
Acronym/term Definition
------------------------------------------------------------------------
$/kW-month............................. Dollars per kilowatt per month.
12-cp.................................. Rolling 12-month peak average
of customers' loads in excess
of Federal entitlement,
coincident with the applicable
transmission project's peak.
Administrator.......................... The Administrator of the
Western Area Power
Administration.
Area Control Error (ACE)............... The instantaneous difference
between a Balancing
Authority's net actual and
scheduled interchange, taking
into account the effects of
frequency bias and correction
for meter error.
Ancillary Services..................... Those services that are
necessary to support the
transmission of capacity and
energy from resources to loads
while maintaining reliable
operation of the Transmission
Service Provider's
transmission system in
accordance with good utility
practice.
ATRR................................... Annual Transmission Revenue
Requirement.
Automatic Generation Control (AGC)..... Equipment that automatically
adjusts generation in a
Balancing Authority Area from
a central location to maintain
the Balancing Authority's
interchange schedule plus
frequency bias.
Balancing Authority (BA)............... The responsible entity that
integrates resource plans
ahead of time, maintains load-
interchange-generation balance
within a Balancing Authority
Area, and supports
Interconnection frequency in
real time.
Control Area........................... The term used for a Balancing
Authority in Western's Open
Access Transmission Tariff.
CRSP................................... Colorado River Storage Project.
DOE.................................... Department of Energy.
DSWR................................... Desert Southwest Customer
Service Region.
Energy Imbalance Service............... The ancillary service in which
the Balancing Authority
corrects hourly for the
difference between a
customer's energy supply and
energy usage.
EIS.................................... Environmental Impact Statement.
[[Page 59684]]
FERC................................... Federal Energy Regulatory
Commission.
Firm Electric Service Contracts........ Contracts of the sale of long-
term firm DSWR Federal energy
and capacity, pursuant to the
Post 1989 General Power
Marketing and Allocation
Criteria (Marketing Plan).
FRN.................................... Federal Register notice.
FY..................................... Fiscal Year.
Generator Imbalance Service............ The ancillary service in which
the Balancing Authority
corrects hourly for the
difference between a
customer's actual generation
and scheduled generation.
kW..................................... Kilowatt. 1,000 watts.
kWh.................................... Kilowatt-hour; the common unit
of electric energy, equal to 1
kW produced or delivered for a
period of 1 hour.
kW-month............................... Kilowatt-month of electric
energy, equal to 1 kW produced
and delivered for 1 month.
kW-year................................ Kilowatt-year. A unit of
electrical capacity demanded
for 8,760 hours.
Load (Total)........................... Network Service plus 12-month
rolling average of monthly
entitlements of Federal
Customers plus reserved
capacity for all long-term
firm point-to-point
transmission service.
Load-ratio share....................... Network Transmission Customer's
12-cp load coincident with
applicable transmission
project's peak, expressed as a
ratio.
Load Serving Entity (LSE).............. An entity within the Balancing
Authority serving load.
Mill................................... Unit of monetary value equal to
.001 of U.S. dollar; i.e., one-
tenth of a cent.
Mills/kWh.............................. Mills per kilowatt-hour.
Monthly Entitlements................... Maximum capacity to be
delivered each month under
Firm Electric Service
Contracts. Each monthly
entitlement is a percentage of
the seasonal contract-rate-of-
delivery.
MW..................................... Megawatt. Equal to 1,000 kW or
1,000,000 watts.
MWH.................................... Megawatt-hour. Equal to
1,000,000 watt-hours of
electric energy.
NATRR.................................. Net Annual Transmission Revenue
Requirement.
NEPA................................... National Environmental Policy
Act of 1969 (42 U.S.C. 4321,
et seq.).
NERC................................... North American Electric
Reliability Corporation.
Network Integration Transmission Firm Transmission Service for
Service (NITS). the delivery of capacity and
energy from designated network
resources to designated
network loads not using one
specific path.
Open Access Same-Time Information An electronic posting system
System (OASIS). that the Transmission Service
Provider maintains for
transmission access data that
allows all transmission
customers to view the data
simultaneously.
O&M.................................... Operation and Maintenance.
OM&R................................... Operation, Maintenance, and
Replacements.
Operating Reserve-Spinning Reserve Generation capacity needed to
Service. serve load immediately in the
event of a system contingency.
Spinning Reserve Service may
be provided by generating
units that are on-line and
loaded at less than maximum
output.
Operating Reserve-Supplemental Reserve Generation capacity needed to
Service. serve load in the event of a
system contingency, which
capacity is not available
immediately to serve load but
rather within a short period
of time. Supplemental Reserve
Service may be provided by
generation units that are on-
line but unloaded, by quick
start generation, or by
interruptible load.
Provisional Formula Rate............... A formula rate which has been
confirmed, approved, and
placed into effect on an
interim basis by the Deputy
Secretary.
Rate Brochure.......................... A document explaining the
rationale and background for
the rate proposal contained in
this Rate Order, dated
February 22, 2011.
Reactive Supply and Voltage Control The ancillary service under
From Generation or Other Sources which a Balancing Authority
Service. operates generation facilities
under its control to produce
or absorb reactive power to
maintain voltages on all
transmission facilities within
acceptable limits.
Reclamation............................ United States Department of the
Interior, Bureau of
Reclamation.
Reclamation Law........................ A series of Federal laws,
viewed as a whole that create
the originating framework
under which Western markets
power.
Regulation and Frequency Response The ancillary service under
Service. which a Balancing Authority
maintains moment-by-moment
load-interchange-generation
balance with the Balancing
Authority area, and supports
interconnection frequency.
Revenue Requirement.................... The revenue required to recover
annual expenses, such as O&M,
purchased power, transmission
service expenses, interest,
deferred expenses, repayment
of Federal investments, and
other assigned costs.
RMR.................................... Rocky Mountain Customer Service
Region.
Scheduling, System Control, and The ancillary service under
Dispatch Service. which a Balancing Authority
sets up an arrangement for an
energy interchange
transaction.
Service Agreement...................... The initial agreement and any
amendments or supplements
entered into by the
Transmission Customer and
Western for service under the
Tariff.
[[Page 59685]]
Sub-Balancing Authority (SBA).......... An area within a Balancing
Authority that has a boundary
metering scheme and for which
an Area Control Error can be
measured.
Tariff................................. Western Area Power
Administration's revised Open
Access Transmission Service
Tariff, effective December 1,
2009 (FERC Docket No. NJ10-1-
000).
Transmission Customer.................. The DSWR customer taking
network or point-to-point
transmission service.
Transmission Provider.................. An entity that administers a
transmission tariff and
provides transmission service
to Transmission Customers
under applicable transmission
service agreements.
WALC................................... Western Area Lower Colorado
Balancing Authority.
WECC................................... Western Electricity
Coordinating Council.
Western................................ Western Area Power
Administration.
------------------------------------------------------------------------
Effective Date
The Provisional Formula Rates will take effect on the first day of
the first full billing period beginning on or after October 1, 2011,
and will remain in effect until September 30, 2016, pending approval by
FERC on a final basis.
Public Notice and Comment
Western has followed the Procedures for Public Participation in
Power and Transmission Rate Adjustments and Extensions, 10 CFR part
903, in developing these formula rates and schedules. The steps Western
took to involve interested parties in the rate process were:
1. On September 22, 2010, Western held an informal public meeting
with customers and interested parties to discuss DSWR's proposed rates
for NITS and WALC Ancillary Services. Western posted all information
presented at the informal public meeting, as well as answering
questions asked at the meeting, on its Web site at https://www.wapa.gov/dsw/pwrmkt/ANCSRV/ANCSRV.htm.
2. On February 15, 2011, DSWR published a Federal Register notice
(76 FR 8730), officially announcing the proposed NITS and WALC
Ancillary Services formula rates adjustment, initiating the public
consultation and comment period, announcing the Public Information and
Public Comment forums and outlining procedures for public
participation.
3. On February 16, 2011, Western mailed all DSWR transmission
customers and interested parties a copy of the published Federal
Register notice published on February 15, 2011,(76 FR 8730).
4. On March 10, 2011, beginning at 1 p.m., Western held its Public
Information Forum at the DSWR Office at 615 South 43rd Avenue, Phoenix,
Arizona. Western representatives explained the need for the formula
rates adjustment in detail and answered questions.
5. On April 6, 2011, beginning at 1 p.m., Western held a Public
Comment Forum at the DSWR Office, Phoenix, Arizona, to provide the
public an opportunity to comment for the record. No comments were
received at this forum.
6. Western received three comment letters during the consultation
and comment period, which ended May 16, 2011.
All comments received have been considered in the preparation of
this Rate Order.
Comments
No oral comments were received.
The following three organizations submitted written comments:
Irrigation & Electrical Districts Association of Arizona,
Phoenix, Arizona.
Wellton-Mohawk Irrigation and Drainage District, Wellton,
Arizona.
Yuma County Water User's Association, Yuma, Arizona.
Project Description
DSWR provides Ancillary Services under the WALC. It encompasses all
the power systems located in the DSWR marketing area; Boulder Canyon
Project (BCP), Parker-Davis Project (P-DP), Central Arizona Project
(CAP), Colorado River Storage Project (CRSP), and the Pacific
Northwest-Pacific Southwest Intertie Project (AC Intertie), as well as
the transmission facilities of the Salt Lake City Area Integrated
Projects of the CRSP. NITS is provided on the P-DP and the AC Intertie.
P-DP
P-DP was formed by consolidating two projects, Davis Dam and Parker
Dam, under terms of the Act of May 28, 1954 (68 Stat. 143). P-DP is
operated in conjunction with the other Federal hydro generation
projects in the Colorado River Basin. The project includes 1,541
circuit-miles of high-voltage transmission lines in Arizona, southern
Nevada, and along the Colorado River in California. Power generated
from the P-DP is marketed to customers in Nevada, Arizona, and
California. The current methodologies to calculate rates for firm
electric and transmission service have been in effect since October 1,
2008.
AC Intertie
The AC Intertie was authorized by Section 8 of the Pacific
Northwest Power Marketing Act of August 31, 1964 (16 U.S.C. 837g).
Western's portion of the AC Intertie consists of two parts, a northern
portion and a southern portion. The southern portion is administered by
Western's DSWR and is treated as a separate, stand alone project for
repayment and operational purposes. It consists of a 238-mile, 345-kV
line from Mead Substation (Nevada) to Liberty Substation (Arizona), a
19-mile, 230-kV line from Liberty to Westwing Substation (Arizona), a
22-mile, 230-kV line from Westwing to Pinnacle Peak Substation
(Arizona), and two segments that came on line in April 1996; the 260-
mile Mead-Phoenix 500-kV AC Transmission Line between Marketplace
Substation (Nevada) and Perkins Substation (Arizona), and the 202-mile
Mead-Adelanto 500-kV AC transmission line between Marketplace and the
existing Adelanto Switching Substation in southern California. The rate
schedules for firm and non-firm transmission services were placed into
effect on October 1, 2007, and expire on September 30, 2012, unless
superseded with new rate schedules.
BCP
Hoover Dam, authorized by the Boulder Canyon Project Act (45 Stat.
1057, December 21, 1928), sits on the Colorado River along the Arizona
and Nevada border. Hoover Power Plant has 19 generating units (two for
plant use) and an installed capacity of 2,078,800 kW (4,800 kW for
plant use). High-voltage transmission lines and substations make it
possible for consumers in southern Nevada,
[[Page 59686]]
Arizona, and southern California to receive power from the BCP. BCP
electric service rates are adjusted annually using an existing rate
formula established on April 19, 1996.
CAP
The CAP is one of three related water development projects that
make up the Colorado River Basin Project. Congress authorized CAP in
1968 to improve water resources in the Colorado River Basin (43 U.S.C.
1501). The legislation also authorized Federal participation in the
Navajo Generating Station, which has three coal-fired steam electric
generating units for a combined capacity of approximately 2,250,000 kW.
The current rate methodology for CAP firm and non-firm transmission
service went into effect on January 1, 2001, and was extended through
December 31, 2012.
CRSP
CRSP was authorized by the Colorado River Storage Project Act, ch.
203, 70 Stat. 105, on April 11, 1956. The project provides water-use
developments for states in the Upper Basin (Colorado, New Mexico, Utah,
and Wyoming) while still maintaining water deliveries to the states of
the Lower Basin (Arizona, California, and Nevada) as required by the
Colorado River Compact Act of 1922. The CRSP hydroelectric facility
providing Ancillary Services for WALC is the Glen Canyon power plant on
the Colorado River.
Network Integration Transmission Service
The formula rates for NITS were initially placed into effect by
Rate Order No. WAPA-127 on November 21, 2006, and were effective
through June 30, 2011. These formula rates were then extended by Rate
Order No. WAPA-152 through September 30, 2013. The formula rates being
placed into effect by Rate Order No. WAPA-151 will be effective on
October 1, 2011, and will remain in effect until September 30, 2015, or
until superseded. The formula rate for CAP is being offered under a
separate Rate Order No. WAPA-124. The formula rate methodology will
remain identical to those for P-DP and AC Intertie.
The formula rates for NITS for P-DP and AC Intertie are described
in Rate Schedules PD-NTS3 and INT-NTS3. These formula rates will remain
project-specific under Rate Order No. WAPA-151. The rates will
subsequently be recalculated every year, effective October 1, based on
the approved formula and updated financial and load data. DSWR will
provide official notice of changes in rates to customers prior to
October 1 of each year.
WALC Ancillary Services
The formula rates for WALC Ancillary Service were initially placed
into effect by Rate Order No. WAPA-127 on July 1, 2006, and were
effective through June 30, 2011.\3\ These rate schedules were then
extended by Rate Order No. WAPA-152 through September 30, 2013.\4\ The
rate schedules being placed into effect by Rate Order No. WAPA-151 will
be effective on October 1, 2011, and will remain in effect until
September 30, 2016, or until superseded.
---------------------------------------------------------------------------
\3\ See 71 FR 36322 (June 26, 2006). FERC confirmed and approved
these rates on November 21, 2006 (117 FERC ] 62,172).
\4\ WAPA-152, Extension of Rate Order No. WAPA-127 through
September 30, 2013. 76 FR 28767, May 18, 2011.
---------------------------------------------------------------------------
Western will offer seven ancillary services pursuant to its Tariff.
The seven ancillary services are: (1) Scheduling, system control, and
dispatch service; (2) reactive supply and voltage control service; (3)
regulation and frequency response service; (4) energy imbalance
service; (5) spinning reserve service; (6) supplemental reserve
service; and (7) generator imbalance service. The formula rates for
ancillary services are designed to recover only the costs incurred for
providing the service(s). The formula rates for ancillary services are
described in Rate Schedules DSW-SD3, DSW-RS3, DSW-FR3, DSW-EI3, DSW-
SPR3, DSW-SUR3, and DSW-GI1. The rates will subsequently be
recalculated every year, effective October 1, based on the approved
formula and updated financial and load data. DSWR will provide official
notice of changes in rates to customers prior to October 1 of each
year.
Comparison of Existing and Provisional Formula Rates for Network
Integration Transmission Service and WALC Ancillary Services
The following table displays a comparison of existing rates and
provisional rates for FY 2012. These rates will be recalculated
annually based on updated financial and load data.
Formula Rate Comparison Table
------------------------------------------------------------------------
Existing formula Provisional formula
rates effective rates effective
Class of service October 1, 2010 (FY October 1, 2011 (FY
2011) 2012)
------------------------------------------------------------------------
Network Integration Customer's Load Customer's Load
Transmission Service: Ratio Share times Ratio Share times
one-twelfth of the one-twelfth of the
Annual Transmission Annual Transmission
Revenue Requirement. Revenue
Requirement.
P-DP.................... $37,912,005......... $38,572,394.
AC Intertie............. $27,476,836......... $27,906,604.
Scheduling, System Control, $26.85/tag Maximum $30.33/Schedule
and Dispatch Services DSW- cost per tag. Maximum cost per
SD3. Schedule.
Reactive Supply and Voltage $0.058/kW-month..... $0.063/kW-month.
Control from Generation
Sources Services DSW-RS3.
Regulation and Frequency 0.2481 Mills/kWh $0.2327/kW-month
Response Service DSW-FR3. (Energy based). (Capacity based).
Energy Imbalance Service:
DSW-EI3.................
On-Peak Hours........... +/- 0 to 1.5%; Min: +/- 0 to 1.5%; Min:
0 to 5 MW. 0 to 4 MW.
Energy within Bandwidth. 100% return......... 100% return.
On-Peak Hours............... .................... +/- 1.5% to 7.5%;
Min: 4 to 10 MW
Energy outside Bandwidth
Deliveries:
Under................... 110% return......... 110% return.
Over.................... 90% return.......... 90% return.
On-Peak Hours............... N/A................. >+/-7.5%, Min:
>10MW.
[[Page 59687]]
Deliveries:
Under................... .................... 125% return.
Over.................... .................... 75% return.
Off-Peak Hours.............. +1.5% to -3%........ +7.5% to -3%.
Deliveries:
Under................... Min: 5 MW........... Min: 5 MW.
Over.................... Min: 2 MW........... Min: 2 MW.
Energy within Bandwidth 100% return......... 100% return.
Energy outside Bandwidth.
Deliveries:
Under................... 110% return......... 110% return.
Over.................... 60% return.......... 60% return.
Generator Imbalance Service:
DSW-GI1
On-Peak Hours............... N/A................. +/- 0 to 1.5%; Min:
0 to 4 MW.
Energy within Bandwidth..... .................... 100% return.
On-Peak Hours Energy outside .................... +/- 1.5% to 7.5%;
bandwidth. Min: 4 to 10 MW.
Deliveries.................. N/A.
Under................... .................... 110% return.
Over.................... .................... 90% return.
On-Peak Hours............... .................... > +/- 7.5%, Min: >
10 MW
Deliveries.................. N/A.
Under................... .................... 125% return.
Over.................... .................... 75% return.
Off-Peak Hours.............. N/A................. +7.5% to -3%.
Deliveries:
Under................... .................... Min: 5 MW.
Over.................... .................... Min: 2 MW.
Energy within Bandwidth..... .................... 100% return.
Energy outside Bandwidth
Deliveries:
Under................... .................... 110% return.
Over........................ .................... 60% return.
Operating Reserves:
Spinning Service DSW- None available on None available on
SPR3 and Supplemental long-term basis; long-term basis;
Service DSW-SUR3. market price, if market price, if
available, on short- available, on short-
term basis, or on term basis, or on
request. Western request. Western
will procure at will procure at
cost plus 10% cost plus 10%
administrative administrative
charge. charge.
------------------------------------------------------------------------
Certification of Rates
Western's Administrator certified that the Provisional Formula
Rates for NITS and WALC Ancillary Services under Rate Schedules PD-
NTS3, INT-NTS3, DSW-SD3, DSW-RS3, DSW-FR3, DSW-EI3, DSW-SPR3, DSW-SUR3,
and DSW-GI1 are the lowest possible rates consistent with sound
business principles. The Provisional Formula Rates were developed
following administrative policies and applicable laws.
Network Integration Transmission Service Discussion
The monthly charge for NITS will be as follows:
[GRAPHIC] [TIFF OMITTED] TN27SE11.022
The customer's load-ratio share is the ratio of its network load to the
Project's Transmission System Total Load at the Project's system peak.
This is calculated on a rolling 12-month basis (12 coincident peak
average or 12-cp).
Network Integration Transmission Service Comments
DSWR received three comment letters during the Public Consultation
and Comment Period. No comments provided related specifically to NITS.
The commenters requested an extension to the public comment period, and
Western responds to these comments later in this document.
WALC Ancillary Services Discussion
Pursuant to Western's Tariff, WALC will offer seven Ancillary
Services. Two of these services, Scheduling, System Control and
Dispatch (SSCD) Service and Reactive Supply and Voltage Control (VAR
Support) from Generation or Other Sources Service, are services that
the Transmission Provider is required to provide (or offer to arrange
[[Page 59688]]
with the Balancing Authority operator) and the Transmission Customer is
required to purchase.
The other five Ancillary Services, Regulation and Frequency
Response (Regulation) Service, Energy Imbalance (EI) Service, Operating
Reserves--Spinning Reserve and Operating Reserve--Supplemental Reserve
Service, Generator Imbalance (GI) Service, are services that the
Transmission Provider is required to offer to provide to the
Transmission Customer. The Transmission Customer is required to acquire
these Ancillary Services, either from the Transmission Provider, from a
third party, or by self-supply.
Formula Rate for Scheduling, System Control, and Dispatch Service
The formula for SSCD Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN27SE11.023
Western's annual revenue requirement (numerator) for SSCD Service
primarily consists of costs for scheduling and will not include costs
for system control and dispatch. Those costs are contained in other
rates. The denominator is the yearly total of daily schedules. This is
a change from the current methodology in that WALC previously counted
tags at the time of creation and any subsequent modifications where
WALC is listed as a Transmission Provider and as a Balancing Authority.
Under Schedule 1 of Western's Tariff, ``this service can be
provided only by the operator of the Control Area in which the
transmission facilities used for transmission service are located.'' In
cases where the Transmission Provider directly provides the service as
the Control Area operator, the costs for this service are included in
the respective Federal transmission rate. In cases where the
Transmission Provider on the schedule is not the control area operator
and the entities are not taking transmission service over the Federal
transmission system in WALC, unless other arrangements are made with
WALC, the SSCD rate will be applicable.
Formula Rate for Reactive Supply and Voltage Support Control Service
From Generation or Other Sources Service
The formula for VAR Support Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN27SE11.024
Western's total annual revenue requirement (numerator) for VAR
Support Service captures the percentage of annual generation costs that
are used for this service. That percentage is based on the nameplate
power factor for the generating units. The annual generation costs are
multiplied by the complement of the power factor. The denominator is a
measure of the loads requiring this service. Western uses long-term
firm transmission reservation data for both CRSP and P-DP, and
subtracts for those customers that provide VAR Support Service to the
Balancing Authority. There is no change to the rate formula
methodology.
[[Page 59689]]
Formula Rate for Regulation and Frequency Response Service
The formula for Regulation Service will have two different
applications:
1. Load-based Assessment. The formula is as follows:
[GRAPHIC] [TIFF OMITTED] TN27SE11.025
Western's annual revenue requirement (numerator) for Regulation
Service captures the plant, operation and maintenance (O&M) costs,
purchases of a regulation product, and purchases of power in support of
the units' ability to regulate. The load (denominator) applies to all
entities' auxiliary load (total less Federal entitlements, including
behind the meter generation rating, or if available, hourly data if
generation is synchronized to the system), plus the nameplate capacity
of intermittent resources serving load in the WALC. Application of
Regulation Service to intermittent resources serving load inside WALC
is a change from the current methodology. Western retains the existing
requirement for providing regulation service for non-conforming loads.
A non-conforming load is defined as a single plant or site with a
regulation capacity requirement of 5 MWs or greater on a recurring
basis and 10 percent or greater of its average load. Regulation Service
for non-conforming loads, as determined by Western, will continue to be
delineated in a Service Agreement and charged an amount that includes
the cost to procure the service and the additional amount required to
monitor and supply the service. The denominator is a change from the
existing formula rate methodology in that it was energy-based rather
than capacity (load)-based.
1. Self-Provision Using Automatic Generation Control Assessment
Western allows entities with automatic or manual generation control
to self-provide for all or a portion of their loads. Typically,
entities with generation control are known as Sub-Balancing Authorities
(SBA) and should meet all of the following criteria:
a. Have a well-defined boundary, with WALC-approved revenue-quality
metering, accurate as defined by North American Electric Reliability
Corporation (NERC), to include MW flow data availability at 6-second or
smaller intervals.
b. Have Automatic Generation Control capability.
c. Demonstrate Regulation Service capability as determined by
Western.
d. Execute a contract with the WALC BA to:
i. Provide all requested data to the WALC BA.
ii. Meet SBA Error Criteria as described below.
Self-provision is to be measured by use of the entity's 1-minute
average Area Control Error (ACE) to determine the amount of self-
provision. The assessment is calculated every hour and the value of ACE
is used to calculate the Regulation Service charges as follows:
a. If the entity's 1-minute average ACE is <= 0.5 percent of the
entity's hourly average load, no Regulation Service charges are
assessed by WALC.
b. If the entity's 1-minute average ACE is >= 1.5 percent of the
entity's hourly average load, WALC assesses Regulation Service charges
to the entity's entire load, using the Load-based rate.
c. If the entity's 1-minute average ACE is > 0.5 percent of the
entity's hourly average load, but < 1.5 percent of the entity's hourly
average load, WALC assesses Regulation Service charges based on linear
interpolation of zero charge and full charge, using the Load-based
rate.
d. Western will monitor the entity's self-provision on a regular
basis. If Western determines that the entity has not been self-
regulating, Western will, upon notification, employ the load-based
assessment methodology described in No. 1 above.
Alternative Arrangements
1. Exporting Intermittent Resource Requirement: An entity that
exports the output from an intermittent generator to another balancing
authority will be required to dynamically meter or dynamically schedule
that resource out of WALC to another balancing authority unless
arrangements, satisfactory to Western, are made for that entity to
acquire this service from a third-party or self-supply (as outlined
below). An intermittent generator is one that is volatile and variable
due to factors beyond direct operational control and, therefore, is not
dispatchable.
2. Self- or Third-party Supply: Western may allow an entity to
supply some or all of its required regulation or contract with a third
party to do so, even without well-defined boundary metering. This
entity must have revenue quality metering at every load and generation
point, and accuracy as defined by NERC, to include MW flow data
availability at 6-second or smaller intervals. WALC will evaluate the
entity's metering, telecommunications and regulating resource, as well
as the required level of regulation, and determine whether the entity
qualifies to self-supply under this provision. If approved, the entity
is required to enter into a separate contract with Western, which will
specify the terms of the self-supply agreement.
[[Page 59690]]
Formula Rate for Energy Imbalance Service
WALC provides EI Service using a bandwidth and penalty structure
with three deviation bands as follows:
1. On-peak hours +/- 0 percent to 1.5 percent of metered load (0 to
4 MW minimum) with no penalty within bandwidth.
2. On-peak hours +/- 1.5 percent to 7.5 percent of metered load (4
to 10 MW minimum) with 110 percent return for under-deliveries and 90
percent return for over-deliveries.
3. On-peak hours >7.5 percent of metered load (>10 MW minimum) with
125 percent return for under-deliveries and 75 percent for over-
deliveries.
Due to Balancing Authority operating constraints in the off-peak
hours, WALC will continue to treat on-peak and off-peak hour imbalances
differently. For off-peak hour imbalances, WALC is proposing to
continue using the following bandwidth structure in those hours but
with an expanded bandwidth for over-delivery:
Off-peak hours 7.5 percent to -3 percent of metered load (2 MW
minimum for over-deliveries; 5 MW minimum for under-deliveries) with
110 percent return for under-delivery, 60 percent return for over-
delivery.
For off-peak hour imbalances, WALC is proposing an imbalance and
penalty structure very similar to the existing structure.
Formula Rates for Operating Reserves--Spinning and Supplemental
Services
WALC has no long-term Reserves available for sale. At a customer's
request, WALC may attempt to purchase and pass through the cost of
Reserves, plus 10 percent administrative costs. This represents no
change to the existing methodology.
Formula Rates for Generator Imbalance Service
WALC has not had a separate rate schedule or provided this service
in the past. The formula rate for GI Service will be identical to that
of EI Service, with the following exceptions:
1. Bandwidths will be calculated as a percentage of metered
generation, since there is no load.
2. Intermittent resources are exempt from the outer bandwidth. All
deviations greater than 1.5 percent of metered generation in the on-
peak hours will be subject only to a 10 percent penalty.
In any hour, WALC may charge a customer a penalty for either GI
Service under Rate Schedule DSW-GI1 or EI Service under Rate Schedule
DSW-EI3, but not both, unless the imbalances aggravate rather than
offset each other.
Comments
DSWR received three comment letters during the Public Consultation
and Comment Period. The comment expressed in these letters has been
paraphrased where appropriate, without compromising the meaning of the
comment.
Comment: All three commenters requested a 30-day extension to the
public consultation and comment period ending May 16, 2011.
Response: Western recognizes the request for an extension to the
comment period. In order to make the rates effective October 1,
however, Western must issue the order confirming, approving and placing
the rates into effect on an interim basis. Western provided
opportunities for the customers and interested parties to participate
and comment within the 90-day consultation and comment period. Prior to
initiation of the formal comment period, Western also held informal
discussions with customers and interested parties, providing for
initial consultation and comments beginning in September 2010. Western
believes that these comment opportunities were sufficient, and the
requesters did not provide sufficient justification of the need for an
extension.
Availability of Information
All brochures, studies, comments, letters, memorandums and other
documents that Western used to develop the Provisional Formula Rates
are available for inspection and copying at the Desert Southwest
Customer Service Region Office, located at 615 South 43rd Avenue,
Phoenix, Arizona or on its Web site at https://www.wapa.gov/dsw/pwrmkt/
ancsrv/ancsrv.htm.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321 et seq.), Council on Environmental Quality
Regulations (40 CFR parts 1500-1508), and DOE NEPA Regulations (10 CFR
part 1021), Western has determined that this action is categorically
excluded from preparing an environmental assessment or an environmental
impact statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Submission to the FERC
The Provisional Formula Rates herein confirmed, approved, and
placed into effect on an interim basis, together with supporting
documents, will be submitted to FERC for confirmation and final
approval.
Order
In view of the foregoing and under the authority delegated to me, I
confirm and approve on an interim basis, effective on the first full
billing period on or after October 1, 2011, formula rates for Network
Integration Transmission Service and WALC Balancing Authority Ancillary
Services under Rate Schedules PD-NTS3, INT-NTS3, DSW-SD3, DSW-RS3, DSW-
FR3, DSW-EI3, DSW-SPR3, DSW-SUR3, and DSW-GI1. By this Order, I am
placing the rates into effect in less than 30 days to meet contract
deadlines, to avoid financial difficulties and to provide a rate for a
new service. These rate schedules shall remain in effect on an interim
basis, pending FERC's confirmation and approval of them or substitute
formula rates on a final basis through September 30, 2016.
Dated: September 19, 2011.
Daniel B. Poneman,
Deputy Secretary.
Network Integration Transmission Service on the Parker-Davis Project
Effective
The first day of the first full billing period beginning on or
after October 1, 2011, through September 30, 2016.
Available
In the area served by the Parker-Davis Project (P-DP) transmission
facilities.
Applicable
To Network Integration Transmission Service (Network Service)
customers where capacity and energy are supplied to the P-DP
transmission system from designated resources, transmitted subject to
the availability of the transmission capacity, and delivered, less
losses, to designated points of delivery on the P-DP system specified
in the network service agreement.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by the network
service agreement.
[[Page 59691]]
Monthly Rate
Network Service Charge: Each contractor shall be billed an amount
based on the contractor's load ratio share times one-twelfth of the P-
DP annual revenue requirement. The load ratio share will be determined
by the contractor's coincidental peak load averaged with the
coincidental peak loads of the previous 11 months divided by the
average P-DP system peak for the same time period.
Revenue Requirement
The projected annual revenue requirement allocated to transmission
for FY 2012 for the P-DP is $38,572,394. Based on updated financial and
load data, a recalculated revenue requirement will go into effect on
October 1 of each year during the effective rate schedule period.
Adjustment for Ancillary Services
Network Service is offered under Western's Open Access Transmission
Tariff, and contractors are responsible for all ancillary services set
forth in the applicable rate schedules specified in the customer's
network service agreement.
Adjustment for Losses
Capacity and energy losses incurred in connection with the
transmission and delivery of power and energy under this rate schedule
shall be supplied by the customer in accordance with the network
service agreement.
Modifications
The Desert Southwest Customer Service Region may modify the charges
for Network Service upon written notice to the transmission customer.
Any change to the charges to the transmission customer for Network
Service shall be included in a revision to this rate schedule
promulgated under applicable Federal laws, regulations, and policies,
and made part of the applicable network service agreement.
Network Integration Transmission Service on the Pacific Northwest-
Pacific Southwest Intertie Project
Effective
The first day of the first full billing period beginning on or
after October 1, 2011, through September 30, 2016.
Available
Within the marketing area serviced by the Pacific Northwest-Pacific
Southwest Intertie Project (Intertie) transmission facilities.
Applicable
To Network Integration Transmission Service (Network Service)
customers where capacity and energy are supplied to the Intertie from
designated resources, transmitted subject to the availability of the
transmission capacity, and delivered, less losses, to designated points
of delivery on the Intertie system specified in the network service
agreement.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by the network
service agreement.
Monthly Rate
Network Service Charge: Each contractor shall be billed an amount
based on the contractor's load ratio share times one-twelfth of the
Intertie annual revenue requirement. The load ratio share will be
determined by the contractor's coincidental peak load averaged with the
coincidental peak loads of the previous 11 months divided by the
average Intertie system peak for the same time period.
Revenue Requirement
The projected annual revenue requirement allocated to transmission
for FY 2012 for the Intertie is $27,906,604. Based on updated financial
and load data, a recalculated revenue requirement will go into effect
on October 1 of each year during the effective rate schedule period.
Adjustments for Ancillary Services
Network Service is offered under the Open Access Transmission
Tariff and contractors are responsible for all ancillary services set
forth in the applicable rate schedules specified in the customer's
network service agreement.
Adjustments for Losses
Capacity and energy losses incurred in connection with the
transmission and delivery of power and energy under this rate schedule
shall be supplied by the customer in accordance with the network
service agreement.
Modifications
The Desert Southwest Customer Service Region may modify the charges
for Network Service upon written notice to the transmission customer.
Any change to the charges to the transmission customer for Network
Service shall be included in a revision to this rate schedule
promulgated under applicable Federal laws, regulations, and policies
and made part of the applicable network service agreement.
Scheduling, System Control, and Dispatch Service
Effective
The first day of the first full billing period beginning on or
after October 1, 2011, through September 30, 2016.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority (BA).
Applicable
Unless other arrangements are made with WALC, to transactions with
entities not taking transmission service over the Federal transmission
system in WALC, where WALC is listed as the Transmission Provider. For
entities taking transmission service from Western in the WALC BA, the
Scheduling, System Control, and Dispatch Service (Scheduling Service)
charge is included in the transmission rate.
Character of Service
Scheduling Service is required to schedule the movement of power
through, out of, within, or into the WALC BA.
Formula Rate
The charges for Scheduling Service are to be based on the following
formula rate where the Rate per Schedule equals:
[GRAPHIC] [TIFF OMITTED] TN27SE11.026
The numerator captures the personnel costs associated with
providing Scheduling Service, as well as related costs, including
annual capital costs associated with providing Scheduling Service. The
denominator captures the
[[Page 59692]]
total number of daily schedules per year.
Rate:
The rate charged for Scheduling Service is $30.33 per Schedule.
This rate is based on FY 2010 financial and load data, and will be in
effect October 1, 2011, through September 30, 2012. Based on updated
financial and load data, a recalculated rate will go into effect on
October 1 of each year during the effective rate period.
The Desert Southwest Customer Service Region's charge for
Scheduling Service may be modified upon written notice to the customer,
and any change to the charges for the service shall be included in a
revision to this rate schedule promulgated under applicable Federal
laws, regulations, and policies and made part of the applicable service
agreement.
Reactive Supply and Voltage Control From Generation Sources Service
Effective
The first day of the first full billing period beginning on or
after October 1, 2011, through September 30, 2016.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority (BA).
Applicable
To all customers in the WALC BA taking transmission service under
Western's Open Access Transmission Tariff. The customer must purchase
this service from WALC, unless the entity has a separate generation
agreement to supply Reactive Supply and Voltage Control from Generation
Sources Service (Voltage Support Service) to WALC.
Character of Service
Voltage Support Service is needed to maintain transmission voltages
on all transmission facilities within acceptable limits. To accomplish
this, generation facilities under the control of the WALC BA are
operated to produce or absorb reactive power.
Formula Rate
The charges for Voltage Support Service are based on the following
formula rate:
[GRAPHIC] [TIFF OMITTED] TN27SE11.027
The revenue requirement for the service is the sum of the service
for each generation project in WALC, determined by multiplying the
generation revenue requirement by one minus the power factor for the
supplying plants.
The load requiring Voltage Support Service equals long-term firm
transmission reservation data for both P-DP and that portion of
Colorado River Storage Project (CRSP) located in WALC, and subtracts
for those reservations by entities with generation agreements to supply
Voltage Support Service to WALC.
Rate
The rate to be in effect October 1, 2011, through September 30,
2012, is:
Monthly: $0.063/kW-month.
Weekly: $0.015/kW-week.
Daily: $0.0021/kW-day.
Hourly: $0.0870 mills/kWh.
This rate is based on the above formula and on FY 2010 financial
and load data, and will be adjusted annually as new data becomes
available and will go into effect October 1 of each year. The Desert
Southwest Customer Service Region (DSWR) charges for Voltage Support
Service may be modified upon written notice to the customer. Any change
to the charges for Voltage Support Service shall be included in a
revision to the rate schedule promulgated under applicable Federal
laws, regulations, and policies and made part of the applicable service
agreement. DSWR shall charge the customer in accordance with the rate
then in effect.
Regulation And Frequency Response Service
Effective
The first day of the first full billing period beginning on or
after October 1, 2011, through September 30, 2016.
Applicable
Regulation and Frequency Response Service (Regulation Service) is
necessary to provide for the continuous balancing of resources,
generation and interchange with load, and for maintaining scheduled
interconnection frequency at 60 cycles per second (60 Hz). Regulation
Service is accomplished by committing on-line generation whose output
is raised or lowered as necessary, predominantly through the use of
automatic generation control equipment, to follow the moment-by-moment
changes in load. The obligation to maintain this balance between
resources and load lies with the Western Area Lower Colorado (WALC)
Balancing Authority (BA) operator. Customers (Federal transmission
customers and customers on others' transmission systems within WALC)
with conforming loads must purchase this service from WALC or make
alternative comparable arrangements to satisfy their Regulation Service
obligations. Customers with non-conforming loads will be charged
differently as stated below. A non-conforming load is defined as a
single plant or site with a regulation capacity requirement of 5
megawatts (MW) or greater on a recurring basis and whose capacity
requirement is equal to 10 percent or greater of its average load.
The charges for Regulation Service are outlined below.
Types
There are two different applications of this Formula Rate:
1. Load-based Assessment: The rate for the load-based assessment is
reflected in the ``Formula Rate'' section and is applied to entities
that take regulation service from the WALC BA. This load-based rate is
assessed on an entity's auxiliary load (total metered load less Federal
entitlements, including behind the meter generation rating, or if
available, hourly data if generation is synchronized to the system) and
is also applied to the installed nameplate capacity of all intermittent
generators within WALC.
2. Self-Provision Assessment: Western allows entities with
automatic or manual generation control to self-provide for all or a
portion of their loads. Typically, entities with generation control are
known as Sub-Balancing Authorities (SBA) and should meet all of the
following criteria:
a. Have a well-defined boundary, with WALC-appro
