Integrated System Power Rates, 2521-2533 [2012-801]
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Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices
2521
977TH—MEETING, REGULAR MEETING, JANUARY 19, 2012, 10 A.M.—Continued
Item No.
Docket No.
Company
Gas
G–1 ........
RM11–4–000 ..................................................................................
G–2 ........
OR11–21–000 ................................................................................
G–3 ........
RP11–1432–000, ............................................................................
RP11–1432–001
Storage Reporting Requirements of Interstate and Intrastate Natural Gas Companies.
Kenai Pipe Line Company; Tesoro Alaska Company and Tesoro
Logistics Operations, LLC.
ETC Tiger Pipeline, LLC.
Hydro
H–1 ........
P–7269–029 ...................................................................................
James B. Boyd and Janet A. Boyd.
Certificates
C–1 ........
C–2 ........
CP11–531–000 ...............................................................................
CP11–46–000 .................................................................................
Dated: January 12, 2012.
Kimberly D. Bose,
Secretary.
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[FR Doc. 2012–906 Filed 1–13–12; 11:15 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Southwestern Power Administration
tkelley on DSK3SPTVN1PROD with NOTICES
Integrated System Power Rates
Southwestern Power
Administration, DOE.
ACTION: Notice of Rate Order.
AGENCY:
Pursuant to Delegation Order
Nos. 00–037.00, effective December 6,
2001, and 00–001.00C, effective January
SUMMARY:
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Golden Triangle Storage, Inc.
Kern River Gas Transmission Company.
31, 2007, the Deputy Secretary has
approved and placed into effect on an
interim basis Rate Order No. SWPA–63,
which increases the power rates for the
Integrated System pursuant to the
Integrated System Rate Schedules which
supersede the existing rate schedules.
DATES: The effective period for the rate
schedules specified in Rate Order No.
SWPA–63 is January 1, 2012, through
September 30, 2015.
FOR FURTHER INFORMATION CONTACT: Mr.
James K. McDonald, Administrator,
Southwestern Power Administration,
Department of Energy, Williams Center
Tower I, One West Third Street, Tulsa,
Oklahoma 74103, (918) 595–6690,
jim.mcdonald@swpa.gov.
Rate Order
No. SWPA–63, which has been
approved and placed into effect on an
interim basis, increases the power rates
for the Integrated System pursuant to
the following Integrated System Rate
Schedules:
Rate Schedule P–11, Wholesale Rates
for Hydro Peaking Power;
Rate Schedule NFTS–11, Wholesale
Rates for Non-Federal Transmission/
Interconnection Facilities Service;
Rate Schedule EE–11, Wholesale Rate
for Excess Energy.
The rate schedules supersede the
existing rate schedules shown below:
Rate Schedule P–09, Wholesale Rates
for Hydro Peaking Power (superseded
by P–11);
Rate Schedule NFTS–09, Wholesale
Rates for Non-Federal Transmission/
Interconnection Facilities Service
(superseded by NFTS–11);
Rate Schedule EE–09, Wholesale Rate
for Excess Energy (superseded by EE–
11).
SUPPLEMENTARY INFORMATION:
Southwestern Power Administration’s
(Southwestern) Administrator has
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determined based on the 2011
Integrated System Current Power
Repayment Study, that existing rates
will not satisfy cost recovery criteria
specified in Department of Energy Order
No. RA 6120.2 and Section 5 of the
Flood Control Act of 1944. The finalized
2011 Integrated System Power
Repayment Studies (PRSs) indicate that
an increase in annual revenue of
$9,569,425, or 5.4 percent, beginning
January 1, 2012, will satisfy cost
recovery criteria for the Integrated
System projects. The proposed
Integrated System rate schedules would
increase annual revenues from
$177,191,800 to $186,761,225, to
recover increased investments and
replacements in the hydroelectric
generating and transmission facilities
and increased operations and
maintenance costs for both
Southwestern and the U.S. Army’s
Corps of Engineers (Corps).
Additionally, the PRS analyzes the
Purchased Power Deferral Account
which indicated a reduction was needed
for the Purchased Power Adder which is
used to recover average year purchased
energy costs. This proposal also
continues the size and frequency of the
Administrator’s Discretionary
Purchased Power Adder Adjustment
(Adjustment). This Adjustment allows
the Administrator to adjust the
Purchased Power Adder twice annually,
limited to ±$0.0062 per kilowatthour
per year as necessary, at his/her
discretion, under a formula-type rate,
with notification to the Federal Energy
Regulatory Commission, to regulate the
account at a level that will recover
purchased power costs.
The Administrator has followed Title
10, Part 903 Subpart A, of the Code of
Federal Regulations, ‘‘Procedures for
Public Participation in Power and
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Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices
Transmission Rate Adjustments and
Extensions’’ in connection with the
proposed rate schedule. On August 8,
2011, Southwestern published notice in
the Federal Register, (76 FR 48159), of
a 60-day comment period, together with
a combined Public Information and
Comment Forum, to provide an
opportunity for customers and other
interested members of the public to
review and comment on the proposed
rate increase for the Integrated System.
The forum was canceled because
Southwestern did not receive any
requests that a forum be held. Written
comments were accepted through
October 7, 2011. No comments were
received.
Information regarding this rate
proposal, including studies and other
supporting material, is available for
public review and comment in the
offices of Southwestern Power
Administration, Williams Center Tower
I, One West Third Street, Tulsa,
Oklahoma 74103. Following review of
Southwestern’s proposal within the
Department of Energy, I approved, Rate
Order No. SWPA–63, on an interim
basis, which increases the existing
Integrated System annual revenue
requirement to $186,761,225 per year
for the period January 1, 2012 through
September 30, 2015.
Dated: January 9, 2012.
Daniel Poneman,
Deputy Secretary.
United States of America
Department of Energy
Deputy Secretary of Energy
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In the matter of: Southwestern Power
Administration; Rate Order; Integrated
System Rates; No. SWPA–63
Order Confirming, Approving and
Placing Increased Power Rate
Schedules in Effect on an Interim Basis
Pursuant to Sections 302(a) and
301(b) of the Department of Energy
Organization Act, Public Law 95–91, the
functions of the Secretary of the Interior
and the Federal Power Commission
under Section 5 of the Flood Control
Act of 1944, 16 U.S.C. 825s, relating to
the Southwestern Power Administration
(Southwestern) were transferred to and
vested in the Secretary of Energy. By
Delegation Order No. 00–037.00, the
Secretary of Energy delegated to the
Administrator of Southwestern the
authority to develop power and
transmission rates, delegated to the
Deputy Secretary of the Department of
Energy the authority to confirm,
approve, and place in effect such rates
on an interim basis and delegated to the
Federal Energy Regulatory Commission
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(FERC) the authority to confirm and
approve on a final basis or to disapprove
rates developed by the Administrator
under the delegation. The Deputy
Secretary issued this interim rate order
pursuant to that delegation.
Background
FERC confirmation and approval of
the following Integrated System
(System) rate schedules was provided in
FERC Docket No. EF10–4–000 issued on
October 4, 2010, (133 FERC ¶ 62,005)
effective for the period January 1, 2010,
through September 30, 2013:
Rate Schedule P–09, Wholesale Rates
for Hydro Peaking Power;
Rate Schedule NFTS–09, Wholesale
Rates for Non-Federal Transmission/
Interconnection Facilities Service;
Rate Schedule EE–09, Wholesale Rate
for Excess Energy.
Southwestern prepared a 2011
Current Power Repayment Study (PRS)
which indicated that the existing rates
would not satisfy present financial
criteria regarding repayment of
investment within a 50-year period due
to increased investments, replacements
and operations and maintenance
expenses in the U.S. Army Corps of
Engineers (Corps) hydroelectric
generating facilities and Southwestern’s
transmission facilities. The Revised PRS
indicated the need for a 5.4 percent
revenue increase. These preliminary
results which presented the basis for the
proposed revenue increase were
provided to the customers for their
review prior to the formal process.
The final 2011 Revised PRS indicates
that an increase in annual revenues of
$9,569,425 (5.4 percent) is necessary
beginning January 1, 2012, to
accomplish repayment in the required
number of years. Accordingly,
Southwestern has prepared proposed
rate schedules based on the additional
revenue requirement and the 2011 Rate
Design Study which allocates the
revenue requirement to the various
System rate schedules to ensure
repayment.
Title 10, Part 903, Subpart A of the
Code of Federal Regulations,
‘‘Procedures for Public Participation in
Power and Transmission Rate
Adjustments and Extensions,’’ has been
followed in connection with the
proposed rate adjustments. More
specifically, opportunities for public
review and comment on proposed
System power rates during a 60-day
period were announced by notice
published in the Federal Register,
August 8, 2011, (76 FR 48159). The
consultation and comment period was
shortened from the 90 days provided for
in the regulations by the Administrator
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in accordance with Sec. 903.14 of 10
CFR part 903, because Southwestern
held a pre-issuance consultation with
customers. A Public Information and
Comment Forum scheduled for August
30, 2011, in Tulsa, Oklahoma, was
canceled because Southwestern did not
receive any requests that a forum be
held. No request for information or
copies of the proposed Power
Repayment and Rate Design Studies
were received from any customers or
interested parties during the formal
period of public participation. Written
comments were due by October 7, 2011.
No comments were received during
the public participation process on
Southwestern’s preliminary results.
Following the conclusion of the
comment period on October 7, 2011, the
2011 Power Repayment and Rate Design
Studies were finalized. The
Administrator made the decision to
submit the rate proposal for interim
approval and implementation.
Discussion
General
The existing rate schedules as
developed in the 2009 Integrated
System PRS were the basis for the
revenue determination in the System
Current PRS. The Current PRS indicates
that existing rates are insufficient to
produce the annual revenues necessary
to accomplish repayment of the capital
investment as required by Section 5 of
the Flood Control Act of 1944 and
Department of Energy (DOE) Order No.
RA 6120.2.
The Revised PRS indicates it is
necessary to increase annual revenues
by $9,569,425 or 5.4 percent, which
satisfies the cost recovery criteria
outlined in DOE Order No. RA 6120.2
and Section 5 of the Flood Control Act
of 1944.
In Southwestern’s 2011 Rate Design
proposal, rates were designed to recover
the additional revenue requirements.
The monthly demand charge for the sale
of Federal hydroelectric power has
increased. The base energy and
supplemental energy charges also reflect
an increase over the current rate. In
addition, transmission charges for nonFederal, firm service have increased.
Those customers taking transformation
service will see no change in that rate
component. The increases to the
transmission charges are due to
including projected additions and
replacements to Southwestern’s aging
transmission facilities since the last rate
change and a transmission specific cost
related to participation in the Southwest
Power Pool Regional Transmission
Organization.
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Consistent with FERC’s Order No.
888, Southwestern will continue
charging for the six ancillary services
under Rate Schedule P–11 and Rate
Schedule NFTS–11, and offering nonFederal transmission service under Rate
Schedule NFTS–11. Southwestern’s rate
design has separated the six ancillary
services for all transmission service.
Two ancillary services, Scheduling,
System Control and Dispatch Service
together with Reactive and Voltage
Support Service, are required for every
transmission transaction. These charges
are also a part of the capacity rate for
Federal power. This is consistent with
Southwestern’s long-standing practice
of charging for the sale and delivery of
Federal power in its Federal demand
charge. The four remaining ancillary
services will be made available to any
transmission user within
Southwestern’s balancing area,
including Federal power customers. The
rate schedules for Peaking Power and
Non-Federal Transmission Service
reflect these charges. Network
transmission service is provided to
those who have contracted for the
service, but only for non-Federal
deliveries. The rate for and application
of this service are identified in the NonFederal Transmission/Interconnection
Facilities Service Rate Schedule, NFTS–
11.
With respect to the Purchased Power
Adder (Adder), Southwestern proposed,
as in all previous proposals beginning
with the 1983 implementation of the
purchased power rate component, that
the Adder is set equal to the current
average long-term purchased power
revenue requirement. As shown in the
Rate Design Study, the amount is
determined by dividing the estimated
total average direct purchased power
costs by Southwestern’s total annual
contractual 1200-hour peaking energy
commitments to the customers
(exclusive of contract support
arrangements). In Southwestern’s rate
proposal, the resulting Adder decreases
from the current $0.0067 per kWh of
peaking energy to $0.0062 per kWh of
peaking energy. The total revenue
created through application of this
Adder should enable Southwestern to
cover its average annual purchased
power costs.
Comments and Responses
Southwestern received no comments
or questions during the public
participation period.
Availability of Information
Information regarding this rate
proposal, including studies, comments
and other supporting material, is
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available for public review and
comment in the offices of Southwestern
Power Administration, One West Third
Street, Tulsa, OK 74103.
Administration’s Certification
The June 2011 Revised PRS indicates
that the increased power rates will
repay all costs of the Integrated System
including amortization of the power
investment consistent with the
provisions of Department of Energy
Order No. RA 6120.2. In accordance
with Delegation Order No. 00–037.00
(December 6, 2001), and Section 5 of the
Flood Control Act of 1944, the
Administrator has determined that the
proposed System rates are consistent
with applicable law and the lowest
possible rates consistent with sound
business principles.
Environment
The environmental impact of the
proposed System rates was evaluated in
consideration of DOE’s guidelines for
implementing the procedural provisions
of the National Environmental Policy
Act and was determined to fall within
the class of actions that are categorically
excluded from the requirements of
preparing either an Environmental
Impact Statement or an Environmental
Assessment.
Order
In view of the foregoing and pursuant
to the authority delegated to me by the
Secretary of Energy, I hereby confirm,
approve and place in effect on an
interim basis, effective January 1, 2012,
the following Southwestern Integrated
System Rate Schedules which shall
remain in effect on an interim basis
through September 30, 2015, or until the
FERC confirms and approves the rates
on a final basis.
Dated: January 9, 2012.
Daniel Poneman,
Deputy Secretary.
United States Department of Energy
Southwestern Power Administration
Rate Schedule P–11 1
Wholesale Rates for Hydro Peaking
Power
Effective:
During the period January 1, 2012,
through September 30, 2015, in
accordance with interim approval from
Rate Order No. SWPA–63 issued by the
Deputy Secretary of Energy on January
9, 2012, and pursuant to final approval
by the Federal Energy Regulatory
Commission.
1 Supersedes
1 Supersedes
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Rate Schedule P–09.
Rate Schedule P–09.
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Available:
In the marketing area of Southwestern
Power Administration (Southwestern),
described generally as the States of
Arkansas, Kansas, Louisiana, Missouri,
Oklahoma, and Texas.
Applicable:
To wholesale Customers which have
contractual rights from Southwestern to
purchase Hydro Peaking Power and
associated energy (Peaking Energy and
Supplemental Peaking Energy).
Character and Conditions of Service:
Three-phase, alternating current,
delivered at approximately 60 Hertz, at
the nominal voltage(s), at the point(s) of
delivery, and in such quantities as are
specified by contract.
1. Definitions of Terms
1.1. Ancillary Services
The services necessary to support the
transmission of capacity and energy
from resources to loads while
maintaining reliable operation of the
System of Southwestern in accordance
with good utility practice, which
include the following:
1.1.1. Scheduling, System Control,
and Dispatch Service is provided by
Southwestern as Balancing Authority
Area operator and is in regard to
interchange and load-match scheduling
and related system control and dispatch
functions.
1.1.2. Reactive Supply and Voltage
Control from Generation Sources
Service is provided at transmission
facilities in the System of Southwestern
to produce or absorb reactive power and
to maintain transmission voltages
within specific limits.
1.1.3. Regulation and Frequency
Response Service is the continuous
balancing of generation and interchange
resources accomplished by raising or
lowering the output of on-line
generation as necessary to follow the
moment-by-moment changes in load
and to maintain frequency within a
Balancing Authority Area.
1.1.4. Spinning Operating Reserve
Service maintains generating units online, but loaded at less than maximum
output, which may be used to service
load immediately when disturbance
conditions are experienced due to a
sudden loss of generation or load.
1.1.5. Supplemental Operating
Reserve Service provides an additional
amount of operating reserve sufficient to
reduce Area Control Error to zero within
10 minutes following loss of generating
capacity which would result from the
most severe single contingency.
1.1.6. Energy Imbalance Service
corrects for differences over a period of
time between schedules and actual
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hourly deliveries of energy to a load.
Energy delivered or received within the
authorized bandwidth for this service is
accounted for as an inadvertent flow
and is returned to the providing party
by the receiving party in accordance
with standard utility practice or a
contractual arrangement between the
parties.
1.2. Customer
The entity which is utilizing and/or
purchasing Federal Power and Federal
Energy and services from Southwestern
pursuant to this Rate Schedule.
1.3. Demand Period
The period of time used to determine
maximum integrated rates of delivery
for the purpose of power accounting
which is the 60-minute period that
begins with the change of hour.
1.4. Federal Power and Energy
The power and energy provided from
the System of Southwestern.
1.5. Hydro Peaking Power
The Federal Power that Southwestern
sells and makes available to the
Customers through their respective
Power Sales Contracts in accordance
with this Rate Schedule.
1.6. Peaking Billing Demand
The quantity equal to the Peaking
Contract Demand for any month unless
otherwise provided by the Customer’s
Power Sales Contract.
1.7. Peaking Contract Demand
The maximum rate in kilowatts at
which Southwestern is obligated to
deliver Federal Energy associated with
Hydro Peaking Power as set forth in the
Customer’s Power Sales Contract.
1.8. Peaking Energy
The Federal Energy associated with
Hydro Peaking Power that Southwestern
sells and makes available to the
Customer in accordance with the terms
and conditions of the Customer’s Power
Sales Contract.
1.9. Power Sales Contract
The Customer’s contract with
Southwestern for the sale of Federal
Power and Federal Energy.
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1.10. Supplemental Peaking Energy
The Federal Energy associated with
Hydro Peaking Power that Southwestern
sells and makes available to the
Customer if determined by
Southwestern to be available and that is
in addition to the quantity of Peaking
Energy purchased by the Customer in
accordance with the terms and
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conditions of the Customer’s Power
Sales Contract.
1.11. System of Southwestern
The transmission and related facilities
owned by Southwestern, and/or the
generation, transmission, and related
facilities owned by others, the capacity
of which, by contract, is available to and
utilized by Southwestern to satisfy its
contractual obligations to the Customer.
1.12. Uncontrollable Force
Any force which is not within the
control of the party affected, including,
but not limited to failure of water
supply, failure of facilities, flood,
earthquake, storm, lightning, fire,
epidemic, war, riot, civil disturbance,
labor disturbance, sabotage,
Congressional act, or restraint by court
of general jurisdiction, which by
exercise of due diligence and foresight
such party could not reasonably have
been expected to avoid.
2. Wholesale Rates, Terms, and
Conditions for Hydro Peaking Power,
Peaking Energy, Supplemental Peaking
Energy, and Associated Services
Unless otherwise specified, this
Section 2 is applicable to all sales under
the Customer’s Power Sales Contract.
2.1. Hydro Peaking Power Rates, Terms,
and Conditions
2.1.1. Monthly Capacity Charge for
Hydro Peaking Power
$4.29 per kilowatt of Peaking Billing
Demand.
2.1.2. Services Associated With
Capacity Charge for Hydro Peaking
Power
The capacity charge for Hydro
Peaking Power includes such
transmission services as are necessary to
integrate Southwestern’s resources in
order to reliably deliver Hydro Peaking
Power and associated energy to the
Customer. This capacity charge also
includes two Ancillary Services charges:
Scheduling, System Control, and
Dispatch Service; and Reactive Supply
and Voltage Control from Generation
Sources Service.
2.1.3. Secondary Transmission Service
under Capacity Associated With Hydro
Peaking Power
Customers may utilize the
transmission capacity associated with
Peaking Contract Demand for the
transmission of non-Federal energy, on
a non-firm, as-available basis, at no
additional charge for such transmission
service or associated Ancillary Services,
under the following terms and
conditions:
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2.1.3.1. The sum of the capacity, for
any hour, which is used for Peaking
Energy, Supplemental Peaking Energy,
and Secondary Transmission Service,
may not exceed the Peaking Contract
Demand;
2.1.3.2. The non-Federal energy
transmitted under such secondary
service is delivered to the Customer’s
point of delivery for Hydro Peaking
Power;
2.1.3.3. The Customer commits to
provide Real Power Losses associated
with such deliveries of non-Federal
energy; and
2.1.4. Sufficient transfer capability
exists between the point of receipt into
the System of Southwestern of such
non-Federal energy and the Customer’s
point of delivery for Hydro Peaking
Power for the time period that such
secondary transmission service is
requested.
2.1.5. Adjustment for Reduction in
Service. If, during any month, the
Peaking Contract Demand associated
with a Power Sales Contract in which
Southwestern has the obligation to
provide 1,200 kilowatthours of Peaking
Energy per kilowatt of Peaking Contract
Demand is reduced by Southwestern for
a period or periods of not less than two
consecutive hours by reason of an
outage caused by either an
Uncontrollable Force or by the
installation, maintenance, replacement
or malfunction of generation,
transmission and/or related facilities on
the System of Southwestern, or
insufficient pool levels, the Customer’s
capacity charges for such month will be
reduced for each such reduction in
service by an amount computed under
the formula:
R = (C × K × H) ÷ S
with the factors defined as follows:
R = The dollar amount of reduction in the
monthly total capacity charges for a
particular reduction of not less than two
consecutive hours during any month,
except that the total amount of any such
reduction shall not exceed the product of
the Customer’s capacity charges
associated with Hydro Peaking Power
times the Peaking Billing Demand.
C = The Customer’s capacity charges
associated with Hydro Peaking Power for
the Peaking Billing Demand for such
month.
K = The reduction in kilowatts in Peaking
Billing Demand for a particular event.
H = The number of hours duration of such
particular reduction.
S = The number of hours that Peaking Energy
is scheduled during such month, but not
less than 60 hours times the Peaking
Contract Demand.
Such reduction in charges shall fulfill
Southwestern’s obligation to deliver
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Hydro Peaking Power and Peaking
Energy.
2.2. Peaking Energy and Supplemental
Peaking Energy Rates, Terms, and
Conditions
2.2.1. Peaking Energy Charge
$0.0091 per kilowatthour of Peaking
Energy delivered plus the Purchased
Power Adder as defined in Section 2.2.3
of this Rate Schedule.
2.2.2. Supplemental Energy Charge
$0.0091 per kilowatthour of
Supplemental Peaking Energy delivered.
2.2.3. Purchased Power Adder
A purchased power adder of $0.0062
per kilowatthour of Peaking Energy
delivered, as adjusted by the
Administrator, Southwestern, in
accordance with the procedure within
this Rate Schedule.
2.2.3.1. Applicability of Purchased
Power Adder
The Purchased Power Adder shall
apply to sales of Peaking Energy. The
Purchased Power Adder shall not apply
to sales of Supplemental Peaking Energy
or sales to any Customer which, by
contract, has assumed the obligation to
supply energy to fulfill the minimum of
1,200 kilowatthours of Peaking Energy
per kilowatt of Peaking Contract
Demand during a contract year
(hereinafter ‘‘Contract Support
Arrangements’’).
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2.2.3.2. Procedure for Determining Net
Purchased Power Adder Adjustment
Not more than twice annually, the
Purchased Power Adder of $0.0062 (6.2
mills) per kilowatthour of Peaking
Energy, as noted in this Rate Schedule,
may be adjusted by the Administrator,
Southwestern, by an amount up to a
total of ±$0.0062 (6.2 mills) per
kilowatthour per year, as calculated by
the following formula:
ADJ = (PURCH—EST + DIF) ÷ SALES
with the factors defined as follows:
ADJ = The dollar per kilowatthour amount of
the total adjustment, plus or minus, to be
applied to the net Purchased Power
Adder, rounded to the nearest $0.0001
per kilowatthour, provided that the total
ADJ to be applied in any year shall not
vary from the then-effective ADJ by more
than $0.0062 per kilowatthour;
PURCH = The actual total dollar cost of
Southwestern’s System Direct Purchases
as accounted for in the financial records
of the Southwestern Federal Power
System for the period;
EST = The estimated total dollar cost
($13,838,800 per year) of Southwestern’s
System Direct Purchases used as the
basis for the Purchased Power Adder of
$0.0062 per kilowatthour of Peaking
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Energy;
DIF = The accumulated remainder of the
difference in the actual and estimated
total dollar cost of Southwestern’s
System Direct Purchases since the
effective date of the currently approved
Purchased Power Adder set forth in this
Rate Schedule, which remainder is not
projected for recovery through the ADJ in
any previous periods;
SALES = The annual Total Peaking Energy
sales projected to be delivered
(2,241,300,000 KWh per year) from the
System of Southwestern, which total was
used as the basis for the $0.0062 per
kilowatthour Purchased Power Adder.
2.3. Transformation Service Rates,
Terms, and Conditions
2.3.1. Monthly Capacity Charge for
Transformation Service
$0.42 per kilowatt will be assessed for
capacity used to deliver energy at any
point of delivery at which Southwestern
provides transformation service for
deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
2.3.2. Applicability of Capacity Charge
for Transformation Service
Unless otherwise specified by
contract, for any particular month, a
charge for transformation service will be
assessed on the greater of (1) that
month’s highest metered demand, or (2)
the highest metered demand recorded
during the previous 11 months, at any
point of delivery. For the purpose of this
Rate Schedule, the highest metered
demand will be based on all deliveries,
of both Federal and non-Federal energy,
from the System of Southwestern, at
such point during such month.
2.4. Ancillary Services Rates, Terms,
and Conditions
2.4.1. Capacity Charges for Ancillary
Services
2.4.1.1. Regulation and Frequency
Response Service
Monthly rate of $0.09 per kilowatt of
Peaking Billing Demand plus the
Regulation Purchased Adder as defined
in Section 2.4.5 of this Rate Schedule.
2.4.1.2. Spinning Operating Reserve
Service
Monthly rate of $0.0112 per kilowatt
of Peaking Billing Demand.
Daily rate of $0.00051 per kilowatt for
non-Federal generation inside
Southwestern’s Balancing Authority
Area.
2.4.1.3. Supplemental Operating
Reserve Service
Monthly rate of $0.0112 per kilowatt
of Peaking Billing Demand.
Daily rate of $0.00051 per kilowatt for
non-Federal generation inside
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Southwestern’s Balancing Authority
Area.
2.4.1.4. Energy Imbalance Service
$0.0 per kilowatt for all reservation
periods.
2.4.2. Availability of Ancillary Services
Regulation and Frequency Response
Service and Energy Imbalance Service
are available only for deliveries of
power and energy to load within
Southwestern’s Balancing Authority
Area. Spinning Operating Reserve
Service and Supplemental Operating
Reserve Service are available only for
deliveries of non-Federal power and
energy generated by resources located
within Southwestern’s Balancing
Authority Area and for deliveries of all
Hydro Peaking Power and associated
energy from and within Southwestern’s
Balancing Authority Area. Where
available, such Ancillary Services must
be taken from Southwestern; unless,
arrangements are made in accordance
with Section 2.4.4 of this Rate Schedule.
2.4.3. Applicability of Charges for
Ancillary Services
For any month, the charges for
Ancillary Services for deliveries of
Hydro Peaking Power shall be based on
the Peaking Billing Demand.
The daily charge for Spinning
Operating Reserve Service and
Supplemental Operating Reserve
Service for non-Federal generation
inside Southwestern’s Balancing
Authority Area shall be applied to the
greater of Southwestern’s previous day’s
estimate of the peak, or the actual peak,
in kilowatts, of the internal non-Federal
generation.
2.4.4. Provision of Ancillary Services by
Others
Customers for which Ancillary
Services are made available as specified
above, must inform Southwestern by
written notice of the Ancillary Services
which they do not intend to take and
purchase from Southwestern, and of
their election to provide all or part of
such Ancillary Services from their own
resources or from a third party.
Subject to Southwestern’s approval of
the ability of such resources or third
parties to meet Southwestern’s technical
and operational requirements for
provision of such Ancillary Services,
the Customer may change the Ancillary
Services which it takes from
Southwestern and/or from other sources
at the beginning of any month upon the
greater of 60 days notice or upon
completion of any necessary equipment
modifications necessary to
accommodate such change; Provided,
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That, if the Customer chooses not to
take Regulation and Frequency
Response Service, which includes the
associated Regulation Purchased Adder,
the Customer must pursue these
services from a different host Balancing
Authority; thereby moving all metered
loads and resources from
Southwestern’s Balancing Authority
Area to the Balancing Authority Area of
the new host Balancing Authority. Until
such time as that meter reconfiguration
is accomplished, the Customer will be
charged for the Regulation and
Frequency Response Service and
applicable Adder then in effect. The
Customer must notify Southwestern by
July 1 of this choice, to be effective
January 1 of the subsequent calendar
year; Provided, That, such Customers
shall be assessed for all costs incurred
by Southwestern for the Regulation
Purchased Adder for the calendar year
in which they give notice. Such
assessment will be paid in twelve equal
monthly payments during the
subsequent calendar year.
tkelley on DSK3SPTVN1PROD with NOTICES
2.4.5. Regulation Purchased Adder
At Southwestern’s sole discretion,
Southwestern may make a
determination that additional regulation
purchases are necessary in order to meet
Southwestern’s Balancing Authority
Area requirements. Such regulation
purchases shall be provided for through
the Regulation Purchased Adder, which
shall be estimated annually before May
1. Southwestern will provide written
notice to the Customer of the estimated
Regulation Purchased Adder charge to
be recovered during the time period of
January 1 through December 31 of the
next calendar year; Provided, That,
should Southwestern incur additional
regulation costs beyond the initial
estimate, such costs will be recovered in
the Regulation Purchased Adder for the
calendar year following when such costs
were incurred.
2.4.5.1. Applicability of Regulation
Purchased Adder
The costs for regulation purchases
shall be recovered by Customers located
within Southwestern’s Balancing
Authority Area on a non-coincident
peak ratio share basis, divided into
twelve equal monthly payments, in
accordance with the formula in Section
2.4.5.2. If the Regulation Purchased
Adder is determined and applied under
Southwestern’s Rate Schedule NFTS–
11, then it shall not be applied here.
2.4.5.2. Procedure for Determining
Regulation Purchased Adder
Unless otherwise specified by
contract, the Regulation Purchased
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Adder for an individual Customer shall
be based on the following formula rate,
calculated to include all costs incurred
by Southwestern for regulation
purchases from the previous calendar
year.
RPA = The Regulation Purchased Adder
for an individual Customer per
month, which is as follows:
[(LCustomer ÷ LTotal) × RPTotal] ÷ 12
with the factors defined as follows:
LCustomer = The sum in MW of the following
three factors:
(1) The Customer’s highest metered load
plus generation used to serve the Customer’s
load that is accounted for through a
reduction in the Customer’s metered load
(referred to as ‘‘generation behind the meter’’)
during the previous calendar year, and
(2) The Customer’s highest rate of
Scheduled Exports* during the previous
calendar year, and
(3) The Customer’s highest rate of
Scheduled Imports* during the previous
calendar year.
LTotal = The sum of all LCustomer factors for all
Customers inside Southwestern’s
Balancing Authority Area in MW.
RPTotal = The cost in dollars and cents of all
capacity and ‘‘net energy’’ purchases
made by Southwestern during the
previous calendar year to support
Southwestern’s ability to regulate within
its Balancing Authority Area. The cost in
dollars and cents associated with ‘‘net
energy’’ purchases shall be adjusted by
subtracting the product of the quantity of
such energy purchased in MWh and
Southwestern’s highest rate in dollars
per MWh for Supplemental Peaking
Energy during the previous calendar
year.
* Scheduled Exports and Scheduled
Imports are transactions, such as sales
and purchases respectively, which are
in addition to a Customer’s metered
load that contribute to Southwestern’s
Balancing Authority Area need for
regulation. The Scheduled Exports and
Scheduled Imports for calendar year
2011 shall not factor into the Customers’
Regulation Purchased Adders for
calendar year 2012.
For Customers that have aggregated
their load, resources, and scheduling
into a single node by contract within
Southwestern’s Balancing Authority
Area, the individual Customer’s
respective Regulation Purchased Adder
shall be that Customer’s ratio share of
the Regulation Purchased Adder
established for the node. Such ratio
share shall be determined for the
Customer on a non-coincident basis and
shall be calculated for the Customer
from their highest metered load plus
generation behind the meter.
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2.4.6. Energy Imbalance Service
Limitations
Energy Imbalance Service primarily
applies to deliveries of power and
energy which are required to satisfy a
Customer’s load. As Hydro Peaking
Power and associated energy are limited
by contract, the Energy Imbalance
Service bandwidth specified for NonFederal Transmission Service does not
apply to deliveries of Hydro Peaking
Power, and therefore Energy Imbalance
Service is not charged on such
deliveries. Customers who consume a
capacity of Hydro Peaking Power greater
than their Peaking Contract Demand
may be subject to a Capacity Overrun
Penalty.
3. Hydro Peaking Power Penalties,
Terms, and Conditions
3.1. Capacity Overrun Penalty
3.1.1. Penalty Charge for Capacity
Overrun
For each hour during which Hydro
Peaking Power was provided at a rate
greater than that to which the Customer
is entitled, the Customer will be charged
a Capacity Overrun Penalty at the
following rates:
Months associated with charge
March, April, May, October, November, December ...................
January, February, June, July,
August, September ...................
Rate per
kilowatt
$0.15
0.30
3.1.2. Applicability of Capacity Overrun
Penalty
Customers which have loads within
Southwestern’s Balancing Authority
Area are obligated by contract to
provide resources, over and above the
Hydro Peaking Power and associated
energy purchased from Southwestern,
sufficient to meet their loads. A
Capacity Overrun Penalty shall be
applied only when the formulas
provided in Customers’ respective
Power Sales Contracts indicate an
overrun on Hydro Peaking Power, and
investigation determines that all
resources, both firm and non-firm,
which were available at the time of the
apparent overrun were insufficient to
meet the Customer’s load.
3.2. Energy Overrun Penalty
3.2.1. Penalty Charge for Energy
Overrun
$0.1001 per kilowatthour for each
kilowatthour of overrun.
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3.2.2. Applicability of Energy Overrun
Penalty
By contract, the Customer is subject to
limitations on the maximum amounts of
Peaking Energy which may be
scheduled under the Customer’s Power
Sales Contract. When the Customer
schedules an amount in excess of such
maximum amounts, such Customer is
subject to the Energy Overrun Penalty.
3.3. Power Factor Penalty
3.3.1. Requirements Related to Power
Factor
Any Customer served from facilities
owned by or available by contract to
Southwestern will be required to
maintain a power factor of not less than
95 percent and will be subject to the
following provisions.
3.3.2. Determination of Power Factor
The power factor will be determined
for all Demand Periods and shall be
calculated under the formula:
PF = (kWh) ÷ √ (kWh2 + rkVAh2)
with the factors defined as follows:
PF = The power factor for any Demand
Period of the month.
kWh = The total quantity of energy which is
delivered during such Demand Period to
the point of delivery or interconnection
in accordance with Section 3.3.4.
rkVAh = The total quantity of reactive
kilovolt-ampere-hours (kVARs) delivered
during such Demand Period to the point
of delivery or interconnection in
accordance with Section 3.3.4.
tkelley on DSK3SPTVN1PROD with NOTICES
3.3.3. Penalty Charge for Power Factor
The Customer shall be assessed a
penalty for all Demand Periods of a
month where the power factor is less
than 95 percent lagging. For any
Demand Period during a particular
month such penalty shall be in
accordance with the following formula:
C = D × (0.95¥LPF) × $0.10
with the factors defined as follows:
C = The charge in dollars to be assessed for
any particular Demand Period of such
month that the determination of power
factor ‘‘PF’’ is calculated to be less than
95 percent lagging.
D = The Customer’s demand in kilowatts at
the point of delivery for such Demand
Period in which a low power factor was
calculated.
LPF = The lagging power factor, if any,
determined by the formula ‘‘PF’’ for such
Demand Period.
If C is negative, then C = zero (0).
3.3.4. Applicability of Power Factor
Penalty
The Power Factor Penalty is
applicable to radial interconnections
with the System of Southwestern. The
total Power Factor Penalty for any
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month shall be the sum of all charges
‘‘C’’ for all Demand Periods of such
month. No penalty is assessed for
leading power factor. Southwestern, in
its sole judgment and at its sole option,
may determine whether power factor
calculations should be applied to (i) a
single physical point of delivery, (ii) a
combination of physical points of
delivery where a Customer has a single,
electrically integrated load, (iii) or
interconnections. The general criteria
for such decision shall be that, given the
configuration of the Customer’s and
Southwestern’s systems, Southwestern
will determine, in its sole judgment and
at its sole option, whether the power
factor calculation more accurately
assesses the detrimental impact on
Southwestern’s system when the above
formula is calculated for a single
physical point of delivery, a
combination of physical points of
delivery, or for an interconnection as
specified by an Interconnection
Agreement.
Southwestern, at its sole option, may
reduce or waive Power Factor Penalties
when, in Southwestern’s sole judgment,
low power factor conditions were not
detrimental to the System of
Southwestern due to particular loading
and voltage conditions at the time the
power factor dropped below 95 percent
lagging.
4.1.1. The Customer shall schedule
and deliver Real Power Losses back to
Southwestern during the second month
after they were incurred by
Southwestern in the transmission of the
Customer’s non-Federal power and
energy over the System of Southwestern
unless such Customer has accounted for
Real Power Losses as part of a metering
arrangement with Southwestern.
4.1.2. On or before the twentieth day
of each month, Southwestern shall
determine the amount of non-Federal
loss energy it provided on behalf of the
Customer during the previous month
and provide a written schedule to the
Customer setting forth hour-by-hour the
quantities of non-Federal energy to be
delivered to Southwestern as losses
during the next month.
4.1.3. Real Power Losses not delivered
to Southwestern by the Customer,
according to the schedule provided,
during the month in which such losses
are due shall be billed by Southwestern
to the Customer to adjust the end-ofmonth loss energy balance to zero (0)
megawatthours and the Customer shall
be obliged to purchase such energy at
the following rates:
4. Hydro Peaking Power Miscellaneous
Rates, Terms, and Conditions
0.30
Months associated with charge
Rate per
kilowatthour
March, April, May, October, November, December ................
January, February, June, July,
August, September ................
$0.15
4.1. Real Power Losses
Customers are required to self-provide
all Real Power Losses for non-Federal
energy transmitted by Southwestern on
behalf of such Customers under the
provisions detailed below.
Real Power Losses are computed as
four (4) percent of the total amount of
non-Federal energy transmitted by
Southwestern. The Customer’s monthly
Real Power Losses are computed each
month on a megawatthour basis as
follows:
ML = 0.04 × NFE
with the factors defined as follows:
4.1.4. Real Power Losses delivered to
Southwestern by the Customer in excess
of the losses due during the month shall
be purchased by Southwestern from the
Customer at a rate per megawatthour
equal to Southwestern’s rate per
megawatthour for Supplemental
Peaking Energy, as set forth in
Southwestern’s then-effective Rate
Schedule for Hydro Peaking Power to
adjust such hourly end-of-month loss
energy balance to zero (0)
megawatthours.
ML = The total monthly loss energy, rounded
to the nearest megawatthour, to be
scheduled by a Customer for receipt by
Southwestern for Real Power Losses
associated with non-Federal energy
transmitted on behalf of such Customer;
and
NFE = The amount of non-Federal energy
that was transmitted by Southwestern on
behalf of a Customer during a particular
month.
Rate Schedule NFTS–11 1
The Customer must schedule or cause
to be scheduled to Southwestern, Real
Power Losses for which it is responsible
subject to the following conditions:
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United States Department of Energy
Southwestern Power Administration
Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities
Service
Effective: During the period January 1,
2012, through September 30, 2015, in
accordance with interim approval from
Rate Order No. SWPA–63 issued by the
Deputy Secretary of Energy on January
9, 2012, and pursuant to final approval
by the Federal Energy Regulatory
Commission.
1 Supersedes
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Rate Schedule NFTS–09.
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Available: In the region of the System
of Southwestern.
Applicable: To Customers which have
executed Service Agreements with
Southwestern for the transmission of
non-Federal power and energy over the
System of Southwestern or for its use for
interconnections. Southwestern will
provide services over those portions of
the System of Southwestern in which
the Administrator, Southwestern, in his
or her sole judgment, has determined
that uncommitted transmission and
transformation capacities in the System
of Southwestern are and will be
available in excess of the capacities
required to market Federal power and
energy pursuant to Section 5 of the
Flood Control Act of 1944 (58 Stat.
887,890; 16 U.S.C. 825s).
Character and Conditions of Service:
Three-phase, alternating current,
delivered at approximately 60 Hertz, at
the nominal voltage(s), at the point(s)
specified by Service Agreement or
Transmission Service Transaction.
1. Definitions of Terms
tkelley on DSK3SPTVN1PROD with NOTICES
1.1. Ancillary Services
The services necessary to support the
transmission of capacity and energy
from resources to loads while
maintaining reliable operation of the
System of Southwestern in accordance
with good utility practice, which
include the following:
1.1.1. Scheduling, System Control,
and Dispatch Service is provided by
Southwestern as Balancing Authority
Area operator and is in regard to
interchange and load-match scheduling
and related system control and dispatch
functions.
1.1.2. Reactive Supply and Voltage
Control from Generation Sources
Service is provided at transmission
facilities in the System of Southwestern
to produce or absorb reactive power and
to maintain transmission voltages
within specific limits.
1.1.3. Regulation and Frequency
Response Service is the continuous
balancing of generation and interchange
resources accomplished by raising or
lowering the output of on-line
generation as necessary to follow the
moment-by-moment changes in load
and to maintain frequency within a
Balancing Authority Area.
1.1.4. Spinning Operating Reserve
Service maintains generating units online, but loaded at less than maximum
output, which may be used to service
load immediately when disturbance
conditions are experienced due to a
sudden loss of generation or load.
1.1.5. Supplemental Operating
Reserve Service provides an additional
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amount of operating reserve sufficient to
reduce Area Control Error to zero within
10 minutes following loss of generating
capacity which would result from the
most severe single contingency.
1.1.6. Energy Imbalance Service
corrects for differences over a period of
time between schedules and actual
hourly deliveries of energy to a load.
Energy delivered or received within the
authorized bandwidth for this service is
accounted for as an inadvertent flow
and is returned to the providing party
by the receiving party in accordance
with standard utility practice or a
contractual arrangement between the
parties.
1.2. Customer
The entity which is utilizing and/or
purchasing services from Southwestern
pursuant to this Rate Schedule.
1.3. Demand Period
The period of time used to determine
maximum integrated rates of delivery
for the purpose of power accounting
which is the 60-minute period that
begins with the change of hour.
1.4. Firm Point-to-Point Transmission
Service
Transmission service reserved on a
firm basis between specific points of
receipt and delivery pursuant to either
a Firm Transmission Service Agreement
or to a Transmission Service
Transaction.
1.5. Interconnection Facilities Service
A service that provides for the use of
the System of Southwestern to deliver
energy and/or provide system support at
an interconnection.
1.6. Network Integration Transmission
Service
Transmission service provided under
Part III of Southwestern’s Open Access
Transmission Service Tariff which
provides the Customer with firm
transmission service for the delivery of
capacity and energy from the
Customer’s resources to the Customer’s
load.
1.7. Non-Firm Point-to-Point
Transmission Service
Transmission service reserved on a
non-firm basis between specific points
of receipt and delivery pursuant to a
Transmission Service Transaction.
1.8. Point of Delivery
Either a single physical point to
which electric power and energy are
delivered from the System of
Southwestern, or a specified set of
delivery points which together form a
single, electrically integrated load.
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1.9. Secondary Transmission Service
Service that is associated with Firm
Point-to-Point Transmission Service and
Network Integration Transmission
Service. For Firm Point-to-Point
Transmission Service, it consists of
transmission service provided on an asavailable, non-firm basis, scheduled
within the limits of a particular capacity
reservation for transmission service, and
scheduled from points of receipt, or to
points of delivery, other than those
designated in a Long-Term Firm
Transmission Service Agreement or a
Transmission Service Transaction for
Firm Point-to-Point Transmission
Service. For Network Integration
Transmission Service, Secondary
Transmission Service consists of
transmission service provided on an asavailable, non-firm basis, from resources
other than the network resources
designated in a Network Transmission
Service Agreement, to meet the
Customer’s network load. The charges
for Secondary Transmission Service,
other than Ancillary Services, are
included in the applicable capacity
charges for Firm Point-to-Point
Transmission Service and Network
Integration Transmission Service.
1.10. Service Agreement
A contract executed between a
Customer and Southwestern for the
transmission of non-Federal power and
energy over the System of Southwestern
or for interconnections which include
the following:
1.10.1. Firm Transmission Service
Agreement provides for reserved
transmission capacity on a firm basis,
for a particular point-to-point delivery
path.
1.10.2. Interconnection Agreement
provides for the use of the System of
Southwestern and recognizes the
exchange of mutual benefits for such
use or provides for application of a
charge for Interconnection Facilities
Service.
1.10.3. Network Transmission Service
Agreement provides for the Customer to
request firm transmission service for the
delivery of capacity and energy from the
Customer’s network resources to the
Customer’s network load, for a period of
one year or more.
1.10.4. Non-Firm Transmission
Service Agreement provides for the
Customer to request transmission
service on a non-firm basis.
1.11. Service Request
The request made under a
Transmission Service Agreement
through the Southwest Power Pool, Inc.
(hereinafter ‘‘SPP’’) Open Access Same-
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Time Information System (hereinafter
‘‘OASIS’’) for reservation of
transmission capacity over a particular
point-to-point delivery path for a
particular period. The Customer must
submit hourly schedules for actual
service in addition to the Service
Request.
1.12. System of Southwestern
The transmission and related facilities
owned by Southwestern, and/or the
generation, transmission, and related
facilities owned by others, the capacity
of which, by contract, is available to and
utilized by Southwestern to satisfy its
contractual obligations to the Customer.
1.13. Transmission Service Transaction
A Service Request that has been
approved by SPP.
1.14. Uncontrollable Force
Any force which is not within the
control of the party affected, including,
but not limited to failure of water
supply, failure of facilities, flood,
earthquake, storm, lightning, fire,
epidemic, war, riot, civil disturbance,
labor disturbance, sabotage,
Congressional act, or restraint by court
of general jurisdiction, which by
exercise of due diligence and foresight
such party could not reasonably have
been expected to avoid.
2. Wholesale Rates, Terms, and
Conditions for Firm Point-to-Point
Transmission Service, Non-Firm Pointto-Point Transmission Service, Network
Integration Transmission Service, and
Interconnection Facilities Service
2.1. Firm Point-to-Point Transmission
Service Rates, Terms, and Conditions
2.1.1. Monthly Capacity Charge for Firm
Point-to-Point Transmission Service
$1.28 per kilowatt of transmission
capacity reserved in increments of one
month of service or invoiced in
accordance with a longer term
agreement.
tkelley on DSK3SPTVN1PROD with NOTICES
2.1.2. Weekly Capacity Charge for Firm
Point-to-Point Transmission Service
$0.320 per kilowatt of transmission
capacity reserved in increments of one
week of service.
2.1.3. Daily Capacity Charge for Firm
Point-to-Point Transmission Service
$0.0582 per kilowatt of transmission
capacity reserved in increments of one
day of service.
2.1.4. Services Associated With
Capacity Charge for Firm Point-to-Point
Transmission Service
The capacity charge for Firm Point-toPoint Transmission Service includes
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Secondary Transmission Service, but
does not include charges for Ancillary
Services associated with actual
schedules.
2.1.5. Applicability of Capacity Charge
for Firm Point-to-Point Transmission
Service
Capacity charges for Firm Point-toPoint Transmission Service are applied
to quantities reserved by contract under
a Firm Transmission Service Agreement
or in accordance with a Transmission
Service Transaction.
A Customer, unless otherwise
specified by contract, will be assessed
capacity charges on the greatest of (1)
the highest metered demand at any
particular Point of Delivery during a
particular month, rounded up to the
nearest whole megawatt, or (2) the
highest metered demand recorded at
such Point of Delivery during any of the
previous 11 months, rounded up to the
nearest whole megawatt, or (3) the
capacity reserved by contract; which
amount shall be considered such
Customer’s reserved capacity.
Secondary Transmission Service for
such Customer shall be limited during
any month to the most recent metered
demand on which that Customer is
billed or to the capacity reserved by
contract, whichever is greater.
2529
2.2.5. Applicability of Charges for NonFirm Point-to-Point Transmission
Service
Capacity charges for Non-Firm Pointto-Point Transmission Service are
applied to quantities reserved under a
Transmission Service Transaction, and
do not include charges for Ancillary
Services.
2.3. Network Integration Transmission
Service Rates, Terms, and Conditions
2.3.1. Annual Revenue Requirement for
Network Integration Transmission
Service
$14,267,100.
2.3.2. Monthly Revenue Requirement for
Network Integration Transmission
Service
$1,188,925.
2.3.3. Net Capacity Available for
Network Integration Transmission
Service
930,000 kilowatts.
2.3.4. Monthly Capacity Charge for
Network Integration Transmission
Service
$1.28 per kilowatt of Network Load
(charge derived from $1,188,925 ÷
930,000 kilowatts).
2.2. Non-Firm Point-to-Point
Transmission Service Rates, Terms, and
Conditions
2.3.5. Applicability of Charges for
Network Integration Transmission
Service
2.2.1. Monthly Capacity Charge for NonFirm Point-to-Point Transmission
Service
80 percent of the monthly capacity
charge for Firm Point-to-Point
Transmission Service reserved in
increments of one month.
Network Integration Transmission
Service is available only for deliveries of
non-Federal power and energy, and is
applied to the Customer utilizing such
service exclusive of any deliveries of
Federal power and energy. The capacity
on which charges for any particular
Customer utilizing this service is
determined on the greatest of (1) the
highest metered demand at any
particular point of delivery during a
particular month, rounded up to the
nearest whole megawatt, or (2) the
highest metered demand recorded at
such point of delivery during any of the
previous 11 months, rounded up to the
nearest whole megawatt.
For a Customer taking Network
Integration Transmission Service who is
also taking delivery of Federal Power
and Energy, the highest metered
demand shall be determined by
subtracting the energy scheduled for
delivery of Federal Power and Energy
for any hour from the metered demand
for such hour.
Secondary Transmission Service for a
Customer shall be limited during any
month to the most recent highest
metered demand on which such
Customer is billed. Charges for
2.2.2. Weekly Capacity Charge for NonFirm Point-to-Point Transmission
Service
80 percent of the monthly capacity
charge divided by 4 for Firm Point-toPoint Transmission Service reserved in
increments of one week.
2.2.3. Daily Capacity Charge for NonFirm Point-to-Point Transmission
Service
80 percent of the monthly capacity
charge divided by 22 for Firm Point-toPoint Transmission Service reserved in
increments of one day.
2.2.4. Hourly Capacity Charge for NonFirm Point-to-Point Transmission
Service
80 percent of the monthly capacity
charge divided by 352 for Firm Point-toPoint Transmission Service reserved in
increments of one hour.
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Ancillary Services shall also be
assessed.
2.6. Ancillary Services Rates, Terms,
and Conditions
2.4. Interconnection Facilities Service
Rates, Terms, and Conditions
2.6.1. Capacity Charges for Ancillary
Services
2.4.1. Monthly Capacity Charge for
Interconnection Facilities Service
2.6.1.1. Scheduling, System Control,
and Dispatch Service
Monthly rate of $0.09 per kilowatt of
transmission capacity reserved in
increments of one month of service or
invoiced in accordance with a LongTerm Firm Transmission Service
Agreement or Network Transmission
Service Agreement.
Weekly rate of $0.023 per kilowatt of
transmission capacity reserved in
increments of one week of service.
Daily rate of $0.0041 per kilowatt of
transmission capacity reserved in
increments of one day of service.
Hourly rate of $0.00026 per kilowatt
of transmission energy delivered as nonfirm transmission service.
$1.28 per kilowatt.
2.4.2. Applicability of Capacity Charge
for Interconnection Facilities Service
Any Customer that requests an
interconnection from Southwestern
which, in Southwestern’s sole judgment
and at its sole option, does not provide
commensurate benefits or compensation
to Southwestern for the use of its
facilities shall be assessed a capacity
charge for Interconnection Facilities
Service. For any month, charges for
Interconnection Facilities Service shall
be assessed on the greater of (1) that
month’s actual highest metered demand,
or (2) the highest metered demand
recorded during the previous eleven
months, as metered at the
interconnection. The use of
Interconnection Facilities Service will
be subject to power factor provisions as
specified in this Rate Schedule. The
interconnection customer shall also
schedule and deliver Real Power Losses
pursuant to the provisions of this Rate
Schedule based on metered flow
through the interconnection where
Interconnection Facilities Services is
assessed.
2.5. Transformation Service Rates,
Terms, and Conditions
2.5.1. Monthly Capacity Charge for
Transformation Service
$0.42 per kilowatt will be assessed for
capacity used to deliver energy at any
point of delivery at which Southwestern
provides transformation service for
deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
tkelley on DSK3SPTVN1PROD with NOTICES
2.5.2. Applicability of Capacity Charge
for Transformation Service
Unless otherwise specified by
contract, for any particular month, a
charge for transformation service will be
assessed on the greater of (1) that
month’s highest metered demand, or (2)
the highest metered demand recorded
during the previous 11 months, at any
point of delivery. For the purpose of this
Rate Schedule, the highest metered
demand will be based on all deliveries,
of both Federal and non-Federal energy,
from the System of Southwestern, at
such point during such month.
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2.6.1.2. Reactive Supply and Voltage
Control From Generation Sources
Service
Monthly rate of $0.04 per kilowatt of
transmission capacity reserved in
increments of one month of service or
invoiced in accordance with a LongTerm Firm Transmission Service
Agreement or Network Transmission
Service Agreement.
Weekly rate of $0.010 per kilowatt of
transmission capacity reserved in
increments of one week of service.
Daily rate of $0.0018 per kilowatt of
transmission capacity reserved in
increments of one day of service.
Hourly rate of $0.00011 per kilowatt
of transmission energy delivered as nonfirm transmission service.
2.6.1.3. Regulation and Frequency
Response Service
Monthly rate of $0.09 per kilowatt of
transmission capacity reserved in
increments of one month of service or
invoiced in accordance with a LongTerm Firm Transmission Service
Agreement or Network Transmission
Service Agreement plus the Regulation
Purchased Adder as defined in Section
2.6.5 of this Rate Schedule.
Weekly rate of $0.023 per kilowatt of
transmission capacity reserved in
increments of one week of service plus
the Regulation Purchased Adder as
defined in Section 2.6.5 of this Rate
Schedule.
Daily rate of $0.0041 per kilowatt of
transmission capacity reserved in
increments of one day of service plus
the Regulation Purchased Adder as
defined in Section 2.6.5 of this Rate
Schedule.
Hourly rate of $0.00026 per kilowatt
of transmission energy delivered as non-
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firm transmission service plus the
Regulation Purchased Adder as defined
in Section 2.6.5 of this Rate Schedule.
2.6.1.4. Spinning Operating Reserve
Service
Monthly rate of $0.0112 per kilowatt
of transmission capacity reserved in
increments of one month of service or
invoiced in accordance with a LongTerm Firm Transmission Service
Agreement or Network Transmission
Service Agreement.
Weekly rate of $0.0028 per kilowatt of
transmission capacity reserved in
increments of one week of service.
Daily rate of $0.00051 per kilowatt of
transmission capacity reserved in
increments of one day of service.
Hourly rate of $0.00003 per kilowatt
of transmission energy delivered as nonfirm transmission service.
2.6.1.5. Supplemental Operating
Reserve Service
Monthly rate of $0.0112 per kilowatt
of transmission capacity reserved in
increments of one month of service or
invoiced in accordance with a LongTerm Firm Transmission Service
Agreement or Network Transmission
Service Agreement.
Weekly rate of $0.0028 per kilowatt of
transmission capacity reserved in
increments of one week of service.
Daily rate of $0.00051 per kilowatt of
transmission capacity reserved in
increments of one day of service.
Hourly rate of $0.00003 per kilowatt
of transmission energy delivered as nonfirm transmission service.
2.6.1.6. Energy Imbalance Service
$0.0 per kilowatt for all reservation
periods.
2.6.2. Availability of Ancillary Services
Scheduling, System Control, and
Dispatch Service and Reactive Supply
and Voltage Control from Generation
Sources Service are available for all
transmission services in and from the
System of Southwestern and shall be
provided by Southwestern. Regulation
and Frequency Response Service and
Energy Imbalance Service are available
only for deliveries of power and energy
to load within Southwestern’s Balancing
Authority Area, and shall be provided
by Southwestern, unless, subject to
Southwestern’s approval, they are
provided by others. Spinning Operating
Reserve Service and Supplemental
Operating Reserve Service are available
only for deliveries of power and energy
generated by resources located within
Southwestern’s Balancing Authority
Area and shall be provided by
Southwestern, unless, subject to
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Southwestern’s approval, they are
provided by others.
tkelley on DSK3SPTVN1PROD with NOTICES
2.6.3. Applicability of Charges for
Ancillary Services
Charges for all Ancillary Services are
applied to the transmission capacity
reserved or network transmission
service taken by the Customer in
accordance with the rates listed above
when such services are provided by
Southwestern.
The charges for Ancillary Services are
considered to include Ancillary
Services for any Secondary
Transmission Service, except in cases
where Ancillary Services identified in
Sections 2.6.1.3 through 2.6.1.6 of this
Rate Schedule are applicable to a
Transmission Service Transaction of
Secondary Transmission Service, but
are not applicable to the transmission
capacity reserved under which
Secondary Transmission Service is
provided. When charges for Ancillary
Services are applicable to Secondary
Transmission Service, the charge for the
Ancillary Service shall be the hourly
rate applied to all energy transmitted
utilizing the Secondary Transmission
Service.
2.6.4. Provision of Ancillary Services by
Others
Customers for which Ancillary
Services identified in Sections 2.6.1.3
through 2.6.1.6 of this Rate Schedule are
made available as specified above must
inform Southwestern by written notice
of the Ancillary Services which they do
not intend to take and purchase from
Southwestern, and of their election to
provide all or part of such Ancillary
Services from their own resources or
from a third party. Such notice
requirements also apply to requests for
Southwestern to provide Ancillary
Services when such services are
available as specified above.
Subject to Southwestern’s approval of
the ability of such resources or third
parties to meet Southwestern’s technical
and operational requirements for
provision of such Ancillary Services,
the Customer may change the Ancillary
Services which it takes from
Southwestern and/or from other sources
at the beginning of any month upon the
greater of 60 days written notice or upon
the completion of any necessary
equipment modifications necessary to
accommodate such change; Provided,
That, if the Customer chooses not to
take Regulation and Frequency
Response Service, which includes the
associated Regulation Purchased Adder,
the Customer must pursue these
services from a different host Balancing
Authority; thereby moving all metered
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Jkt 226001
loads and resources from
Southwestern’s Balancing Authority
Area to the Balancing Authority Area of
the new host Balancing Authority. Until
such time as that meter reconfiguration
is accomplished, the Customer will be
charged for the Regulation and
Frequency Response Service and
applicable Adder then in effect. The
Customer must notify Southwestern by
July 1 of this choice, to be effective
January 1 of the subsequent calendar
year; Provided, That, such Customers
shall be assessed for all costs incurred
by Southwestern for the Regulation
Purchased Adder for the calendar year
in which they give notice. Such
assessment will be paid in twelve equal
monthly payments during the
subsequent calendar year.
2.6.5. Regulation Purchased Adder
At Southwestern’s sole discretion,
Southwestern may make a
determination that additional regulation
purchases are necessary in order to meet
Southwestern’s Balancing Authority
Area requirements. Such regulation
purchases shall be provided for through
the Regulation Purchased Adder, which
shall be estimated annually before May
1. Southwestern will provide written
notice to the Customer of the estimated
Regulation Purchased Adder charge to
be recovered during the time period of
January 1 through December 31 of the
next calendar year; Provided, That,
should Southwestern incur additional
regulation costs beyond the initial
estimate, such costs will be recovered in
the Regulation Purchased Adder for the
calendar year following when such costs
were incurred.
2.6.5.1. Applicability of Regulation
Purchased Adder
The costs for regulation purchases
shall be recovered by Customers located
within Southwestern’s Balancing
Authority Area on a non-coincident
peak ratio share basis, divided into
twelve equal monthly payments, in
accordance with the formula in Section
2.6.5.2.
If the Regulation Purchased Adder is
determined and applied under
Southwestern’s Rate Schedule P–11,
then it shall not be applied here.
2.6.5.2. Procedure for Determining
Regulation Purchased Adder
Unless otherwise specified by
contract, the Regulation Purchased
Adder for an individual Customer shall
be based on the following formula rate,
calculated to include all costs incurred
by Southwestern for regulation
purchases from the previous calendar
year.
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2531
RPA = The Regulation Purchased Adder
for an individual Customer per
month, which is as follows:
[(LCustomer ÷ LTotal) × RPTotal] ÷ 12
with the factors defined as follows:
LCustomer = The sum in MW of the following
three factors:
(1) The Customer’s highest metered load
plus generation used to serve the Customer’s
load that is accounted for through a
reduction in the Customer’s metered load
(referred to as ‘generation behind the meter’)
during the previous calendar year, and
(2) The Customer’s highest rate of
Scheduled Exports* during the previous
calendar year, and
(3) The Customer’s highest rate of
Scheduled Imports* during the previous
calendar year.
LTotal = The sum of all LCustomer factors for all
Customers inside Southwestern’s
Balancing Authority Area in MW.
RPTotal = The cost in dollars and cents of all
capacity and ‘‘net energy’’ purchases
made by Southwestern during the
previous calendar year to support
Southwestern’s ability to regulate within
its Balancing Authority Area. The cost in
dollars and cents associated with ‘‘net
energy’’ purchases shall be adjusted by
subtracting the product of the quantity of
such energy purchased in MWh and
Southwestern’s highest rate in dollars
per MWh for Supplemental Peaking
Energy during the previous calendar
year.
*Scheduled Exports and Scheduled
Imports are transactions, such as sales
and purchases respectively, which are
in addition to a Customer’s metered
load that contribute to Southwestern’s
Balancing Authority Area need for
regulation. The Scheduled Exports and
Scheduled Imports for calendar year
2011 shall not factor into the Customers’
Regulation Purchased Adders for
calendar year 2012.
For Customers that have aggregated
their load, resources, and scheduling
into a single node by contract within
Southwestern’s Balancing Authority
Area, the individual Customer’s
respective Regulation Purchased Adder
shall be that Customer’s ratio share of
the Regulation Purchased Adder
established for the node. Such ratio
share shall be determined for the
Customer on a non-coincident basis and
shall be calculated for the Customer
from their highest metered load plus
generation behind the meter.
2.6.6. Energy Imbalance Service
Limitations
Energy Imbalance Service is
authorized for use only within a
bandwidth of ±1.5 percent of the actual
requirements of the load at a particular
point of delivery, for any hour,
compared to the resources scheduled to
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meet such load during such hour.
Deviations which are greater than ±1.5
percent, but which are less than ±2,000
kilowatts, are considered to be within
the authorized bandwidth. Deviations
outside the authorized bandwidth are
subject to a Capacity Overrun Penalty.
Energy delivered or received within
the authorized bandwidth for this
service is accounted for as an
inadvertent flow and will be netted
against flows in the future. The
inadvertent flow in any given hour will
only be offset with the flows in the
corresponding hour of a day in the same
category. Unless otherwise specified by
contract, the two categories of days are
weekdays and weekend days/North
American Electric Reliability
Corporation holidays, and this process
will result in a separate inadvertent
accumulation for each hour of the two
categories of days. The hourly
accumulations in the current month will
be added to the hourly inadvertent
balances from the previous month,
resulting in a month-end balance for
each hour.
The Customer is required to adjust the
scheduling of resources in such a way
as to reduce the accumulation towards
zero. It is recognized that the
inadvertent hourly flows can be both
negative and positive, and that offsetting
flows should deter a significant
accumulation of inadvertent. Unless
otherwise specified by contract, in the
event any hourly month-end balance
exceeds 12 MWhs, the excess will be
subject to Section 3.1 or Section 3.2 of
this Rate Schedule, depending on the
direction of the accumulation.
3. Non-Federal Transmission/
Interconnection Facilities Service
Penalties, Terms, and Conditions
3.1. Capacity Overrun Penalty
3.1.1. Penalty Charge for Capacity
Overrun
For each hour during which energy
flows outside the authorized bandwidth,
the Customer will be obliged to
purchase such energy at the following
rates:
Rate per
kilowatt
tkelley on DSK3SPTVN1PROD with NOTICES
Months associated with charge
resources sufficient to meet their loads.
Such obligation is not related to the
amount of transmission capacity that
such Customers may have reserved for
transmission service to a particular load.
In the event that a Customer
underschedules its resources to serve its
load, resulting in a difference between
resources and actual metered load
(adjusted for transformer losses as
applicable) outside the authorized
bandwidth for Energy Imbalance Service
for any hour, then such Customer is
subject to the Capacity Overrun Penalty.
3.2. Unauthorized Use of Energy
Imbalance Service by Overscheduling of
Resources
In the event that a Customer
schedules greater resources than are
needed to serve its load, such that
energy flows at rates beyond the
authorized bandwidth for the use of
Energy Imbalance Service,
Southwestern retains such energy at no
cost to Southwestern and with no
obligation to return such energy.
3.3. Power Factor Penalty
3.3.1. Requirements Related to Power
Factor
Any Customer served from facilities
owned by or available by contract to
Southwestern will be required to
maintain a power factor of not less than
95 percent and will be subject to the
following provisions.
3.3.2. Determination of Power Factor
The power factor will be determined
for all Demand Periods and shall be
calculated under the formula:
PF = (kWh) ÷ √ (kWh2 + rkVAh2)
with the factors defined as follows:
PF = The power factor for any Demand
Period of the month.
kWh = The total quantity of energy which is
delivered during such Demand Period to
the point of delivery or interconnection
in accordance with Section 3.3.4.
rkVAh = The total quantity of reactive
kilovolt-ampere-hours (kVARs) delivered
during such Demand Period to the point
of delivery or interconnection in
accordance with Section 3.3.4.
3.3.3. Penalty Charge for Power Factor
The Customer shall be assessed a
penalty for all Demand Periods of a
$0.15 month where the power factor is less
than 95 percent lagging. For any
0.30 Demand Period during a particular
month such penalty shall be in
3.1.2. Applicability of Capacity Overrun accordance with the following formula:
C = D × (0.95 ¥ LPF) × $0.10
Penalty
with the factors defined as follows:
Customers who receive deliveries
within Southwestern’s Balancing
C = The charge in dollars to be assessed for
Authority Area are obligated to provide
any particular Demand Period of such
March, April, May, October, November, December ...................
January, February, June, July,
August, September ...................
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month that the determination of power
factor ‘‘PF’’ is calculated to be less than
95 percent lagging.
D = The Customer’s demand in kilowatts at
the point of delivery for such Demand
Period in which a low power factor was
calculated.
LPF = The lagging power factor, if any,
determined by the formula ‘‘PF’’ for such
Demand Period.
If C is negative, then C = zero (0).
3.3.4. Applicability of Power Factor
Penalty
The Power Factor Penalty is
applicable to radial interconnections
with the System of Southwestern. The
total Power Factor Penalty for any
month shall be the sum of all charges
‘‘C’’ for all Demand Periods of such
month. No penalty is assessed for
leading power factor. Southwestern, in
its sole judgment and at its sole option,
may determine whether power factor
calculations should be applied to (i) a
single physical point of delivery, (ii) a
combination of physical points of
delivery where a Customer has a single,
electrically integrated load, (iii) or
interconnections. The general criteria
for such decision shall be that, given the
configuration of the Customer’s and
Southwestern’s systems, Southwestern
will determine, in its sole judgment and
at its sole option, whether the power
factor calculation more accurately
assesses the detrimental impact on
Southwestern’s system when the above
formula is calculated for a single
physical point of delivery, a
combination of physical points of
delivery, or for an interconnection as
specified by an Interconnection
Agreement.
Southwestern, at its sole option, may
reduce or waive Power Factor Penalties
when, in Southwestern’s sole judgment,
low power factor conditions were not
detrimental to the System of
Southwestern due to particular loading
and voltage conditions at the time the
power factor dropped below 95 percent
lagging.
4. Non-Federal Transmission/
Interconnection Facilities Service
Miscellaneous Rates, Terms, and
Conditions
4.1. Real Power Losses
Customers are required to self-provide
all Real Power Losses for non-Federal
energy transmitted by Southwestern on
behalf of such Customers under the
provisions detailed below.
Real Power Losses are computed as
four (4) percent of the total amount of
non-Federal energy transmitted by
Southwestern. The Customer’s monthly
Real Power Losses are computed each
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energy balance to zero (0)
megawatthours.
month on a megawatthour basis as
follows:
ML = 0.04 × NFE
with the factors defined as follows:
United States Department of Energy
ML = The total monthly loss energy, rounded
to the nearest megawatthour, to be
scheduled by a Customer for receipt by
Southwestern for Real Power Losses
associated with non-Federal energy
transmitted on behalf of such Customer;
and
NFE = The amount of non-Federal energy
that was transmitted by Southwestern on
behalf of a Customer during a particular
month.
The Customer must schedule or cause
to be scheduled to Southwestern, Real
Power Losses for which it is responsible
subject to the following conditions:
4.1.1. The Customer shall schedule
and deliver Real Power Losses back to
Southwestern during the second month
after they were incurred by
Southwestern in the transmission of the
Customer’s non-Federal power and
energy over the System of Southwestern
unless such Customer has accounted for
Real Power Losses as part of a metering
arrangement with Southwestern.
4.1.2. On or before the twentieth day
of each month, Southwestern shall
determine the amount of non-Federal
loss energy it provided on behalf of the
Customer during the previous month
and provide a written schedule to the
Customer setting forth hour-by-hour the
quantities of non-Federal energy to be
delivered to Southwestern as losses
during the next month.
4.1.3. Real Power Losses not delivered
to Southwestern by the Customer,
according to the schedule provided,
during the month in which such losses
are due shall be billed by Southwestern
to the Customer to adjust the end-ofmonth loss energy balance to zero (0)
megawatthours and the Customer shall
be obliged to purchase such energy at
the following rates:
Rate per
kilowatthour
March, April, May, October, November, December ................
January, February, June, July,
August, September ................
tkelley on DSK3SPTVN1PROD with NOTICES
Months associated with charge
$0.15
16:07 Jan 17, 2012
Rate Schedule EE–11 1
Wholesale Rates for Excess Energy
Effective: During the period January 1,
2012, through September 30, 2015, in
accordance with interim approval from
Rate Order No. SWPA–63 issued by the
Deputy Secretary of Energy on January
9, 2012, and pursuant to final approval
by the Federal Energy Regulatory
Commission.
Available: In the marketing area of
Southwestern Power Administration
(Southwestern), described generally as
the States of Arkansas, Kansas,
Louisiana, Missouri, Oklahoma, and
Texas.
Applicable: To electric utilities
which, by contract, may purchase
Excess Energy from Southwestern.
Character and Conditions of Service:
Three-phase, alternating current,
delivered at approximately 60 Hertz, at
the nominal voltage(s) and at the
point(s) of delivery specified by
contract.
1. Wholesale Rates, Terms, and
Conditions for Excess Energy
Excess Energy will be furnished at
such times and in such amounts as
Southwestern determines to be
available.
1.1. Transmission and Related Ancillary
Services
Transmission service for the delivery
of Excess Energy shall be the sole
responsibility of such customer
purchasing Excess Energy.
1.2. Excess Energy Charge
$0.0091 per kilowatthour of Excess
Energy delivered.
[FR Doc. 2012–801 Filed 1–17–12; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
0.30
4.1.4. Real Power Losses delivered to
Southwestern by the Customer in excess
of the losses due during the month shall
be purchased by Southwestern from the
Customer at a rate per megawatthour
equal to Southwestern’s rate per
megawatthour for Supplemental
Peaking Energy, as set forth in
Southwestern’s then-effective Rate
Schedule for Hydro Peaking Power to
adjust such hourly end-of-month loss
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Southwestern Power Administration
Jkt 226001
Western Area Power Administration
Boulder Canyon Project
Western Area Power
Administration, DOE.
ACTION: Notice of Proposed Base Charge
and Rates.
AGENCY:
The Western Area Power
Administration (Western), a power
marketing administration within the
Department of Energy (DOE), is
SUMMARY:
1 Supersedes
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Fmt 4703
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2533
proposing an adjustment to the Boulder
Canyon Project (BCP) electric service
base charge and rates. The current base
charge and rates expire September 30,
2012, under Rate Schedule BCP–F8. The
existing base charge is being adjusted to
ensure it includes all annual costs
including operation, maintenance,
replacements, interest expense, and to
repay investment obligations within the
required period. The proposed base
charge will provide sufficient revenue to
cover all annual costs and to repay
investment obligations within the
allowable period. A detailed rate
package that identifies the reasons for
the base charge and rates adjustment
will be available in March 2012. The
proposed base charge and rates are
scheduled to become effective October
1, 2012, and will remain in effect
through September 30, 2013. This
Federal Register notice initiates the
formal process for the proposed base
charge and rates.
DATES: The consultation and comment
period will begin today and will end
April 17, 2012. Western will present a
detailed explanation of the proposed
base charge and rates at a public
information forum March 28, 2012,
beginning at 10:30 a.m. Mountain
Standard Time (MST), in Phoenix,
Arizona. Western will accept oral and
written comments at a public comment
forum April 11, 2012, beginning at 10:30
a.m. MST, at the same location. Western
will accept written comments any time
during the consultation and comment
period.
ADDRESSES: The public information
forum and public comment forum will
be held at the Desert Southwest
Customer Service Regional Office,
located at 615 South 43rd Avenue,
Phoenix, Arizona, on the dates cited
above. Written comments should be sent
to Darrick Moe, Regional Manager,
Desert Southwest Customer Service
Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457, email
moe@wapa.gov. Written comments may
also be faxed to (602) 605–2490,
attention: Jack Murray. Western will
post information about the rate
processes on its Web site at https://
www.wapa.gov/dsw/pwrmkt/BCP/
RateAdjust.htm. Western will also post
official comments received via letter,
fax, and email to this Web site. Western
must receive written comments by the
end of the consultation and comment
period to ensure they are considered in
Western’s decision process.
As access to Western facilities is
controlled, any U.S. citizen wishing to
attend any meeting held at Western
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18JAN1
Agencies
[Federal Register Volume 77, Number 11 (Wednesday, January 18, 2012)]
[Notices]
[Pages 2521-2533]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-801]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective
December 6, 2001, and 00-001.00C, effective January 31, 2007, the
Deputy Secretary has approved and placed into effect on an interim
basis Rate Order No. SWPA-63, which increases the power rates for the
Integrated System pursuant to the Integrated System Rate Schedules
which supersede the existing rate schedules.
DATES: The effective period for the rate schedules specified in Rate
Order No. SWPA-63 is January 1, 2012, through September 30, 2015.
FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Administrator,
Southwestern Power Administration, Department of Energy, Williams
Center Tower I, One West Third Street, Tulsa, Oklahoma 74103, (918)
595-6690, jim.mcdonald@swpa.gov.
SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-63, which has been
approved and placed into effect on an interim basis, increases the
power rates for the Integrated System pursuant to the following
Integrated System Rate Schedules:
Rate Schedule P-11, Wholesale Rates for Hydro Peaking Power;
Rate Schedule NFTS-11, Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities Service;
Rate Schedule EE-11, Wholesale Rate for Excess Energy.
The rate schedules supersede the existing rate schedules shown
below:
Rate Schedule P-09, Wholesale Rates for Hydro Peaking Power
(superseded by P-11);
Rate Schedule NFTS-09, Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities Service (superseded by NFTS-
11);
Rate Schedule EE-09, Wholesale Rate for Excess Energy (superseded
by EE-11).
Southwestern Power Administration's (Southwestern) Administrator
has determined based on the 2011 Integrated System Current Power
Repayment Study, that existing rates will not satisfy cost recovery
criteria specified in Department of Energy Order No. RA 6120.2 and
Section 5 of the Flood Control Act of 1944. The finalized 2011
Integrated System Power Repayment Studies (PRSs) indicate that an
increase in annual revenue of $9,569,425, or 5.4 percent, beginning
January 1, 2012, will satisfy cost recovery criteria for the Integrated
System projects. The proposed Integrated System rate schedules would
increase annual revenues from $177,191,800 to $186,761,225, to recover
increased investments and replacements in the hydroelectric generating
and transmission facilities and increased operations and maintenance
costs for both Southwestern and the U.S. Army's Corps of Engineers
(Corps). Additionally, the PRS analyzes the Purchased Power Deferral
Account which indicated a reduction was needed for the Purchased Power
Adder which is used to recover average year purchased energy costs.
This proposal also continues the size and frequency of the
Administrator's Discretionary Purchased Power Adder Adjustment
(Adjustment). This Adjustment allows the Administrator to adjust the
Purchased Power Adder twice annually, limited to $0.0062
per kilowatthour per year as necessary, at his/her discretion, under a
formula-type rate, with notification to the Federal Energy Regulatory
Commission, to regulate the account at a level that will recover
purchased power costs.
The Administrator has followed Title 10, Part 903 Subpart A, of the
Code of Federal Regulations, ``Procedures for Public Participation in
Power and
[[Page 2522]]
Transmission Rate Adjustments and Extensions'' in connection with the
proposed rate schedule. On August 8, 2011, Southwestern published
notice in the Federal Register, (76 FR 48159), of a 60-day comment
period, together with a combined Public Information and Comment Forum,
to provide an opportunity for customers and other interested members of
the public to review and comment on the proposed rate increase for the
Integrated System. The forum was canceled because Southwestern did not
receive any requests that a forum be held. Written comments were
accepted through October 7, 2011. No comments were received.
Information regarding this rate proposal, including studies and
other supporting material, is available for public review and comment
in the offices of Southwestern Power Administration, Williams Center
Tower I, One West Third Street, Tulsa, Oklahoma 74103. Following review
of Southwestern's proposal within the Department of Energy, I approved,
Rate Order No. SWPA-63, on an interim basis, which increases the
existing Integrated System annual revenue requirement to $186,761,225
per year for the period January 1, 2012 through September 30, 2015.
Dated: January 9, 2012.
Daniel Poneman,
Deputy Secretary.
United States of America
Department of Energy
Deputy Secretary of Energy
In the matter of: Southwestern Power Administration; Rate Order;
Integrated System Rates; No. SWPA-63
Order Confirming, Approving and Placing Increased Power Rate Schedules
in Effect on an Interim Basis
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern
Power Administration (Southwestern) were transferred to and vested in
the Secretary of Energy. By Delegation Order No. 00-037.00, the
Secretary of Energy delegated to the Administrator of Southwestern the
authority to develop power and transmission rates, delegated to the
Deputy Secretary of the Department of Energy the authority to confirm,
approve, and place in effect such rates on an interim basis and
delegated to the Federal Energy Regulatory Commission (FERC) the
authority to confirm and approve on a final basis or to disapprove
rates developed by the Administrator under the delegation. The Deputy
Secretary issued this interim rate order pursuant to that delegation.
Background
FERC confirmation and approval of the following Integrated System
(System) rate schedules was provided in FERC Docket No. EF10-4-000
issued on October 4, 2010, (133 FERC ] 62,005) effective for the period
January 1, 2010, through September 30, 2013:
Rate Schedule P-09, Wholesale Rates for Hydro Peaking Power;
Rate Schedule NFTS-09, Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities Service;
Rate Schedule EE-09, Wholesale Rate for Excess Energy.
Southwestern prepared a 2011 Current Power Repayment Study (PRS)
which indicated that the existing rates would not satisfy present
financial criteria regarding repayment of investment within a 50-year
period due to increased investments, replacements and operations and
maintenance expenses in the U.S. Army Corps of Engineers (Corps)
hydroelectric generating facilities and Southwestern's transmission
facilities. The Revised PRS indicated the need for a 5.4 percent
revenue increase. These preliminary results which presented the basis
for the proposed revenue increase were provided to the customers for
their review prior to the formal process.
The final 2011 Revised PRS indicates that an increase in annual
revenues of $9,569,425 (5.4 percent) is necessary beginning January 1,
2012, to accomplish repayment in the required number of years.
Accordingly, Southwestern has prepared proposed rate schedules based on
the additional revenue requirement and the 2011 Rate Design Study which
allocates the revenue requirement to the various System rate schedules
to ensure repayment.
Title 10, Part 903, Subpart A of the Code of Federal Regulations,
``Procedures for Public Participation in Power and Transmission Rate
Adjustments and Extensions,'' has been followed in connection with the
proposed rate adjustments. More specifically, opportunities for public
review and comment on proposed System power rates during a 60-day
period were announced by notice published in the Federal Register,
August 8, 2011, (76 FR 48159). The consultation and comment period was
shortened from the 90 days provided for in the regulations by the
Administrator in accordance with Sec. 903.14 of 10 CFR part 903,
because Southwestern held a pre-issuance consultation with customers. A
Public Information and Comment Forum scheduled for August 30, 2011, in
Tulsa, Oklahoma, was canceled because Southwestern did not receive any
requests that a forum be held. No request for information or copies of
the proposed Power Repayment and Rate Design Studies were received from
any customers or interested parties during the formal period of public
participation. Written comments were due by October 7, 2011.
No comments were received during the public participation process
on Southwestern's preliminary results. Following the conclusion of the
comment period on October 7, 2011, the 2011 Power Repayment and Rate
Design Studies were finalized. The Administrator made the decision to
submit the rate proposal for interim approval and implementation.
Discussion
General
The existing rate schedules as developed in the 2009 Integrated
System PRS were the basis for the revenue determination in the System
Current PRS. The Current PRS indicates that existing rates are
insufficient to produce the annual revenues necessary to accomplish
repayment of the capital investment as required by Section 5 of the
Flood Control Act of 1944 and Department of Energy (DOE) Order No. RA
6120.2.
The Revised PRS indicates it is necessary to increase annual
revenues by $9,569,425 or 5.4 percent, which satisfies the cost
recovery criteria outlined in DOE Order No. RA 6120.2 and Section 5 of
the Flood Control Act of 1944.
In Southwestern's 2011 Rate Design proposal, rates were designed to
recover the additional revenue requirements. The monthly demand charge
for the sale of Federal hydroelectric power has increased. The base
energy and supplemental energy charges also reflect an increase over
the current rate. In addition, transmission charges for non-Federal,
firm service have increased. Those customers taking transformation
service will see no change in that rate component. The increases to the
transmission charges are due to including projected additions and
replacements to Southwestern's aging transmission facilities since the
last rate change and a transmission specific cost related to
participation in the Southwest Power Pool Regional Transmission
Organization.
[[Page 2523]]
Consistent with FERC's Order No. 888, Southwestern will continue
charging for the six ancillary services under Rate Schedule P-11 and
Rate Schedule NFTS-11, and offering non-Federal transmission service
under Rate Schedule NFTS-11. Southwestern's rate design has separated
the six ancillary services for all transmission service. Two ancillary
services, Scheduling, System Control and Dispatch Service together with
Reactive and Voltage Support Service, are required for every
transmission transaction. These charges are also a part of the capacity
rate for Federal power. This is consistent with Southwestern's long-
standing practice of charging for the sale and delivery of Federal
power in its Federal demand charge. The four remaining ancillary
services will be made available to any transmission user within
Southwestern's balancing area, including Federal power customers. The
rate schedules for Peaking Power and Non-Federal Transmission Service
reflect these charges. Network transmission service is provided to
those who have contracted for the service, but only for non-Federal
deliveries. The rate for and application of this service are identified
in the Non-Federal Transmission/Interconnection Facilities Service Rate
Schedule, NFTS-11.
With respect to the Purchased Power Adder (Adder), Southwestern
proposed, as in all previous proposals beginning with the 1983
implementation of the purchased power rate component, that the Adder is
set equal to the current average long-term purchased power revenue
requirement. As shown in the Rate Design Study, the amount is
determined by dividing the estimated total average direct purchased
power costs by Southwestern's total annual contractual 1200-hour
peaking energy commitments to the customers (exclusive of contract
support arrangements). In Southwestern's rate proposal, the resulting
Adder decreases from the current $0.0067 per kWh of peaking energy to
$0.0062 per kWh of peaking energy. The total revenue created through
application of this Adder should enable Southwestern to cover its
average annual purchased power costs.
Comments and Responses
Southwestern received no comments or questions during the public
participation period.
Availability of Information
Information regarding this rate proposal, including studies,
comments and other supporting material, is available for public review
and comment in the offices of Southwestern Power Administration, One
West Third Street, Tulsa, OK 74103.
Administration's Certification
The June 2011 Revised PRS indicates that the increased power rates
will repay all costs of the Integrated System including amortization of
the power investment consistent with the provisions of Department of
Energy Order No. RA 6120.2. In accordance with Delegation Order No. 00-
037.00 (December 6, 2001), and Section 5 of the Flood Control Act of
1944, the Administrator has determined that the proposed System rates
are consistent with applicable law and the lowest possible rates
consistent with sound business principles.
Environment
The environmental impact of the proposed System rates was evaluated
in consideration of DOE's guidelines for implementing the procedural
provisions of the National Environmental Policy Act and was determined
to fall within the class of actions that are categorically excluded
from the requirements of preparing either an Environmental Impact
Statement or an Environmental Assessment.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm, approve and place in
effect on an interim basis, effective January 1, 2012, the following
Southwestern Integrated System Rate Schedules which shall remain in
effect on an interim basis through September 30, 2015, or until the
FERC confirms and approves the rates on a final basis.
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\1\ Supersedes Rate Schedule P-09.
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Dated: January 9, 2012.
Daniel Poneman,
Deputy Secretary.
United States Department of Energy
Southwestern Power Administration
Rate Schedule P-11 \1\
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\1\ Supersedes Rate Schedule P-09.
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Wholesale Rates for Hydro Peaking Power
Effective:
During the period January 1, 2012, through September 30, 2015, in
accordance with interim approval from Rate Order No. SWPA-63 issued by
the Deputy Secretary of Energy on January 9, 2012, and pursuant to
final approval by the Federal Energy Regulatory Commission.
Available:
In the marketing area of Southwestern Power Administration
(Southwestern), described generally as the States of Arkansas, Kansas,
Louisiana, Missouri, Oklahoma, and Texas.
Applicable:
To wholesale Customers which have contractual rights from
Southwestern to purchase Hydro Peaking Power and associated energy
(Peaking Energy and Supplemental Peaking Energy).
Character and Conditions of Service:
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage(s), at the point(s) of delivery, and in
such quantities as are specified by contract.
1. Definitions of Terms
1.1. Ancillary Services
The services necessary to support the transmission of capacity and
energy from resources to loads while maintaining reliable operation of
the System of Southwestern in accordance with good utility practice,
which include the following:
1.1.1. Scheduling, System Control, and Dispatch Service is provided
by Southwestern as Balancing Authority Area operator and is in regard
to interchange and load-match scheduling and related system control and
dispatch functions.
1.1.2. Reactive Supply and Voltage Control from Generation Sources
Service is provided at transmission facilities in the System of
Southwestern to produce or absorb reactive power and to maintain
transmission voltages within specific limits.
1.1.3. Regulation and Frequency Response Service is the continuous
balancing of generation and interchange resources accomplished by
raising or lowering the output of on-line generation as necessary to
follow the moment-by-moment changes in load and to maintain frequency
within a Balancing Authority Area.
1.1.4. Spinning Operating Reserve Service maintains generating
units on-line, but loaded at less than maximum output, which may be
used to service load immediately when disturbance conditions are
experienced due to a sudden loss of generation or load.
1.1.5. Supplemental Operating Reserve Service provides an
additional amount of operating reserve sufficient to reduce Area
Control Error to zero within 10 minutes following loss of generating
capacity which would result from the most severe single contingency.
1.1.6. Energy Imbalance Service corrects for differences over a
period of time between schedules and actual
[[Page 2524]]
hourly deliveries of energy to a load. Energy delivered or received
within the authorized bandwidth for this service is accounted for as an
inadvertent flow and is returned to the providing party by the
receiving party in accordance with standard utility practice or a
contractual arrangement between the parties.
1.2. Customer
The entity which is utilizing and/or purchasing Federal Power and
Federal Energy and services from Southwestern pursuant to this Rate
Schedule.
1.3. Demand Period
The period of time used to determine maximum integrated rates of
delivery for the purpose of power accounting which is the 60-minute
period that begins with the change of hour.
1.4. Federal Power and Energy
The power and energy provided from the System of Southwestern.
1.5. Hydro Peaking Power
The Federal Power that Southwestern sells and makes available to
the Customers through their respective Power Sales Contracts in
accordance with this Rate Schedule.
1.6. Peaking Billing Demand
The quantity equal to the Peaking Contract Demand for any month
unless otherwise provided by the Customer's Power Sales Contract.
1.7. Peaking Contract Demand
The maximum rate in kilowatts at which Southwestern is obligated to
deliver Federal Energy associated with Hydro Peaking Power as set forth
in the Customer's Power Sales Contract.
1.8. Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer in accordance
with the terms and conditions of the Customer's Power Sales Contract.
1.9. Power Sales Contract
The Customer's contract with Southwestern for the sale of Federal
Power and Federal Energy.
1.10. Supplemental Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer if determined by
Southwestern to be available and that is in addition to the quantity of
Peaking Energy purchased by the Customer in accordance with the terms
and conditions of the Customer's Power Sales Contract.
1.11. System of Southwestern
The transmission and related facilities owned by Southwestern, and/
or the generation, transmission, and related facilities owned by
others, the capacity of which, by contract, is available to and
utilized by Southwestern to satisfy its contractual obligations to the
Customer.
1.12. Uncontrollable Force
Any force which is not within the control of the party affected,
including, but not limited to failure of water supply, failure of
facilities, flood, earthquake, storm, lightning, fire, epidemic, war,
riot, civil disturbance, labor disturbance, sabotage, Congressional
act, or restraint by court of general jurisdiction, which by exercise
of due diligence and foresight such party could not reasonably have
been expected to avoid.
2. Wholesale Rates, Terms, and Conditions for Hydro Peaking Power,
Peaking Energy, Supplemental Peaking Energy, and Associated Services
Unless otherwise specified, this Section 2 is applicable to all
sales under the Customer's Power Sales Contract.
2.1. Hydro Peaking Power Rates, Terms, and Conditions
2.1.1. Monthly Capacity Charge for Hydro Peaking Power
$4.29 per kilowatt of Peaking Billing Demand.
2.1.2. Services Associated With Capacity Charge for Hydro Peaking Power
The capacity charge for Hydro Peaking Power includes such
transmission services as are necessary to integrate Southwestern's
resources in order to reliably deliver Hydro Peaking Power and
associated energy to the Customer. This capacity charge also includes
two Ancillary Services charges: Scheduling, System Control, and
Dispatch Service; and Reactive Supply and Voltage Control from
Generation Sources Service.
2.1.3. Secondary Transmission Service under Capacity Associated With
Hydro Peaking Power
Customers may utilize the transmission capacity associated with
Peaking Contract Demand for the transmission of non-Federal energy, on
a non-firm, as-available basis, at no additional charge for such
transmission service or associated Ancillary Services, under the
following terms and conditions:
2.1.3.1. The sum of the capacity, for any hour, which is used for
Peaking Energy, Supplemental Peaking Energy, and Secondary Transmission
Service, may not exceed the Peaking Contract Demand;
2.1.3.2. The non-Federal energy transmitted under such secondary
service is delivered to the Customer's point of delivery for Hydro
Peaking Power;
2.1.3.3. The Customer commits to provide Real Power Losses
associated with such deliveries of non-Federal energy; and
2.1.4. Sufficient transfer capability exists between the point of
receipt into the System of Southwestern of such non-Federal energy and
the Customer's point of delivery for Hydro Peaking Power for the time
period that such secondary transmission service is requested.
2.1.5. Adjustment for Reduction in Service. If, during any month,
the Peaking Contract Demand associated with a Power Sales Contract in
which Southwestern has the obligation to provide 1,200 kilowatthours of
Peaking Energy per kilowatt of Peaking Contract Demand is reduced by
Southwestern for a period or periods of not less than two consecutive
hours by reason of an outage caused by either an Uncontrollable Force
or by the installation, maintenance, replacement or malfunction of
generation, transmission and/or related facilities on the System of
Southwestern, or insufficient pool levels, the Customer's capacity
charges for such month will be reduced for each such reduction in
service by an amount computed under the formula:
R = (C x K x H) / S
with the factors defined as follows:
R = The dollar amount of reduction in the monthly total capacity
charges for a particular reduction of not less than two consecutive
hours during any month, except that the total amount of any such
reduction shall not exceed the product of the Customer's capacity
charges associated with Hydro Peaking Power times the Peaking
Billing Demand.
C = The Customer's capacity charges associated with Hydro Peaking
Power for the Peaking Billing Demand for such month.
K = The reduction in kilowatts in Peaking Billing Demand for a
particular event.
H = The number of hours duration of such particular reduction.
S = The number of hours that Peaking Energy is scheduled during such
month, but not less than 60 hours times the Peaking Contract Demand.
Such reduction in charges shall fulfill Southwestern's obligation
to deliver
[[Page 2525]]
Hydro Peaking Power and Peaking Energy.
2.2. Peaking Energy and Supplemental Peaking Energy Rates, Terms, and
Conditions
2.2.1. Peaking Energy Charge
$0.0091 per kilowatthour of Peaking Energy delivered plus the
Purchased Power Adder as defined in Section 2.2.3 of this Rate
Schedule.
2.2.2. Supplemental Energy Charge
$0.0091 per kilowatthour of Supplemental Peaking Energy delivered.
2.2.3. Purchased Power Adder
A purchased power adder of $0.0062 per kilowatthour of Peaking
Energy delivered, as adjusted by the Administrator, Southwestern, in
accordance with the procedure within this Rate Schedule.
2.2.3.1. Applicability of Purchased Power Adder
The Purchased Power Adder shall apply to sales of Peaking Energy.
The Purchased Power Adder shall not apply to sales of Supplemental
Peaking Energy or sales to any Customer which, by contract, has assumed
the obligation to supply energy to fulfill the minimum of 1,200
kilowatthours of Peaking Energy per kilowatt of Peaking Contract Demand
during a contract year (hereinafter ``Contract Support Arrangements'').
2.2.3.2. Procedure for Determining Net Purchased Power Adder Adjustment
Not more than twice annually, the Purchased Power Adder of $0.0062
(6.2 mills) per kilowatthour of Peaking Energy, as noted in this Rate
Schedule, may be adjusted by the Administrator, Southwestern, by an
amount up to a total of $0.0062 (6.2 mills) per
kilowatthour per year, as calculated by the following formula:
ADJ = (PURCH--EST + DIF) / SALES
with the factors defined as follows:
ADJ = The dollar per kilowatthour amount of the total adjustment,
plus or minus, to be applied to the net Purchased Power Adder,
rounded to the nearest $0.0001 per kilowatthour, provided that the
total ADJ to be applied in any year shall not vary from the then-
effective ADJ by more than $0.0062 per kilowatthour;
PURCH = The actual total dollar cost of Southwestern's System Direct
Purchases as accounted for in the financial records of the
Southwestern Federal Power System for the period;
EST = The estimated total dollar cost ($13,838,800 per year) of
Southwestern's System Direct Purchases used as the basis for the
Purchased Power Adder of $0.0062 per kilowatthour of Peaking Energy;
DIF = The accumulated remainder of the difference in the actual and
estimated total dollar cost of Southwestern's System Direct
Purchases since the effective date of the currently approved
Purchased Power Adder set forth in this Rate Schedule, which
remainder is not projected for recovery through the ADJ in any
previous periods;
SALES = The annual Total Peaking Energy sales projected to be
delivered (2,241,300,000 KWh per year) from the System of
Southwestern, which total was used as the basis for the $0.0062 per
kilowatthour Purchased Power Adder.
2.3. Transformation Service Rates, Terms, and Conditions
2.3.1. Monthly Capacity Charge for Transformation Service
$0.42 per kilowatt will be assessed for capacity used to deliver
energy at any point of delivery at which Southwestern provides
transformation service for deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
2.3.2. Applicability of Capacity Charge for Transformation Service
Unless otherwise specified by contract, for any particular month, a
charge for transformation service will be assessed on the greater of
(1) that month's highest metered demand, or (2) the highest metered
demand recorded during the previous 11 months, at any point of
delivery. For the purpose of this Rate Schedule, the highest metered
demand will be based on all deliveries, of both Federal and non-Federal
energy, from the System of Southwestern, at such point during such
month.
2.4. Ancillary Services Rates, Terms, and Conditions
2.4.1. Capacity Charges for Ancillary Services
2.4.1.1. Regulation and Frequency Response Service
Monthly rate of $0.09 per kilowatt of Peaking Billing Demand plus
the Regulation Purchased Adder as defined in Section 2.4.5 of this Rate
Schedule.
2.4.1.2. Spinning Operating Reserve Service
Monthly rate of $0.0112 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00051 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.4.1.3. Supplemental Operating Reserve Service
Monthly rate of $0.0112 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00051 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.4.1.4. Energy Imbalance Service
$0.0 per kilowatt for all reservation periods.
2.4.2. Availability of Ancillary Services
Regulation and Frequency Response Service and Energy Imbalance
Service are available only for deliveries of power and energy to load
within Southwestern's Balancing Authority Area. Spinning Operating
Reserve Service and Supplemental Operating Reserve Service are
available only for deliveries of non-Federal power and energy generated
by resources located within Southwestern's Balancing Authority Area and
for deliveries of all Hydro Peaking Power and associated energy from
and within Southwestern's Balancing Authority Area. Where available,
such Ancillary Services must be taken from Southwestern; unless,
arrangements are made in accordance with Section 2.4.4 of this Rate
Schedule.
2.4.3. Applicability of Charges for Ancillary Services
For any month, the charges for Ancillary Services for deliveries of
Hydro Peaking Power shall be based on the Peaking Billing Demand.
The daily charge for Spinning Operating Reserve Service and
Supplemental Operating Reserve Service for non-Federal generation
inside Southwestern's Balancing Authority Area shall be applied to the
greater of Southwestern's previous day's estimate of the peak, or the
actual peak, in kilowatts, of the internal non-Federal generation.
2.4.4. Provision of Ancillary Services by Others
Customers for which Ancillary Services are made available as
specified above, must inform Southwestern by written notice of the
Ancillary Services which they do not intend to take and purchase from
Southwestern, and of their election to provide all or part of such
Ancillary Services from their own resources or from a third party.
Subject to Southwestern's approval of the ability of such resources
or third parties to meet Southwestern's technical and operational
requirements for provision of such Ancillary Services, the Customer may
change the Ancillary Services which it takes from Southwestern and/or
from other sources at the beginning of any month upon the greater of 60
days notice or upon completion of any necessary equipment modifications
necessary to accommodate such change; Provided,
[[Page 2526]]
That, if the Customer chooses not to take Regulation and Frequency
Response Service, which includes the associated Regulation Purchased
Adder, the Customer must pursue these services from a different host
Balancing Authority; thereby moving all metered loads and resources
from Southwestern's Balancing Authority Area to the Balancing Authority
Area of the new host Balancing Authority. Until such time as that meter
reconfiguration is accomplished, the Customer will be charged for the
Regulation and Frequency Response Service and applicable Adder then in
effect. The Customer must notify Southwestern by July 1 of this choice,
to be effective January 1 of the subsequent calendar year; Provided,
That, such Customers shall be assessed for all costs incurred by
Southwestern for the Regulation Purchased Adder for the calendar year
in which they give notice. Such assessment will be paid in twelve equal
monthly payments during the subsequent calendar year.
2.4.5. Regulation Purchased Adder
At Southwestern's sole discretion, Southwestern may make a
determination that additional regulation purchases are necessary in
order to meet Southwestern's Balancing Authority Area requirements.
Such regulation purchases shall be provided for through the Regulation
Purchased Adder, which shall be estimated annually before May 1.
Southwestern will provide written notice to the Customer of the
estimated Regulation Purchased Adder charge to be recovered during the
time period of January 1 through December 31 of the next calendar year;
Provided, That, should Southwestern incur additional regulation costs
beyond the initial estimate, such costs will be recovered in the
Regulation Purchased Adder for the calendar year following when such
costs were incurred.
2.4.5.1. Applicability of Regulation Purchased Adder
The costs for regulation purchases shall be recovered by Customers
located within Southwestern's Balancing Authority Area on a non-
coincident peak ratio share basis, divided into twelve equal monthly
payments, in accordance with the formula in Section 2.4.5.2. If the
Regulation Purchased Adder is determined and applied under
Southwestern's Rate Schedule NFTS-11, then it shall not be applied
here.
2.4.5.2. Procedure for Determining Regulation Purchased Adder
Unless otherwise specified by contract, the Regulation Purchased
Adder for an individual Customer shall be based on the following
formula rate, calculated to include all costs incurred by Southwestern
for regulation purchases from the previous calendar year.
RPA = The Regulation Purchased Adder for an individual Customer per
month, which is as follows:
[(LCustomer / LTotal) x RPTotal] / 12
with the factors defined as follows:
LCustomer = The sum in MW of the following three factors:
(1) The Customer's highest metered load plus generation used to
serve the Customer's load that is accounted for through a reduction
in the Customer's metered load (referred to as ``generation behind
the meter'') during the previous calendar year, and
(2) The Customer's highest rate of Scheduled Exports* during the
previous calendar year, and
(3) The Customer's highest rate of Scheduled Imports* during the
previous calendar year.
LTotal = The sum of all LCustomer factors for
all Customers inside Southwestern's Balancing Authority Area in MW.
RPTotal = The cost in dollars and cents of all capacity
and ``net energy'' purchases made by Southwestern during the
previous calendar year to support Southwestern's ability to regulate
within its Balancing Authority Area. The cost in dollars and cents
associated with ``net energy'' purchases shall be adjusted by
subtracting the product of the quantity of such energy purchased in
MWh and Southwestern's highest rate in dollars per MWh for
Supplemental Peaking Energy during the previous calendar year.
* Scheduled Exports and Scheduled Imports are transactions, such as
sales and purchases respectively, which are in addition to a Customer's
metered load that contribute to Southwestern's Balancing Authority Area
need for regulation. The Scheduled Exports and Scheduled Imports for
calendar year 2011 shall not factor into the Customers' Regulation
Purchased Adders for calendar year 2012.
For Customers that have aggregated their load, resources, and
scheduling into a single node by contract within Southwestern's
Balancing Authority Area, the individual Customer's respective
Regulation Purchased Adder shall be that Customer's ratio share of the
Regulation Purchased Adder established for the node. Such ratio share
shall be determined for the Customer on a non-coincident basis and
shall be calculated for the Customer from their highest metered load
plus generation behind the meter.
2.4.6. Energy Imbalance Service Limitations
Energy Imbalance Service primarily applies to deliveries of power
and energy which are required to satisfy a Customer's load. As Hydro
Peaking Power and associated energy are limited by contract, the Energy
Imbalance Service bandwidth specified for Non-Federal Transmission
Service does not apply to deliveries of Hydro Peaking Power, and
therefore Energy Imbalance Service is not charged on such deliveries.
Customers who consume a capacity of Hydro Peaking Power greater than
their Peaking Contract Demand may be subject to a Capacity Overrun
Penalty.
3. Hydro Peaking Power Penalties, Terms, and Conditions
3.1. Capacity Overrun Penalty
3.1.1. Penalty Charge for Capacity Overrun
For each hour during which Hydro Peaking Power was provided at a
rate greater than that to which the Customer is entitled, the Customer
will be charged a Capacity Overrun Penalty at the following rates:
------------------------------------------------------------------------
Rate per
Months associated with charge kilowatt
------------------------------------------------------------------------
March, April, May, October, November, December............... $0.15
January, February, June, July, August, September............. 0.30
------------------------------------------------------------------------
3.1.2. Applicability of Capacity Overrun Penalty
Customers which have loads within Southwestern's Balancing
Authority Area are obligated by contract to provide resources, over and
above the Hydro Peaking Power and associated energy purchased from
Southwestern, sufficient to meet their loads. A Capacity Overrun
Penalty shall be applied only when the formulas provided in Customers'
respective Power Sales Contracts indicate an overrun on Hydro Peaking
Power, and investigation determines that all resources, both firm and
non-firm, which were available at the time of the apparent overrun were
insufficient to meet the Customer's load.
3.2. Energy Overrun Penalty
3.2.1. Penalty Charge for Energy Overrun
$0.1001 per kilowatthour for each kilowatthour of overrun.
[[Page 2527]]
3.2.2. Applicability of Energy Overrun Penalty
By contract, the Customer is subject to limitations on the maximum
amounts of Peaking Energy which may be scheduled under the Customer's
Power Sales Contract. When the Customer schedules an amount in excess
of such maximum amounts, such Customer is subject to the Energy Overrun
Penalty.
3.3. Power Factor Penalty
3.3.1. Requirements Related to Power Factor
Any Customer served from facilities owned by or available by
contract to Southwestern will be required to maintain a power factor of
not less than 95 percent and will be subject to the following
provisions.
3.3.2. Determination of Power Factor
The power factor will be determined for all Demand Periods and
shall be calculated under the formula:
PF = (kWh) / [radic] (kWh\2\ + rkVAh\2\)
with the factors defined as follows:
PF = The power factor for any Demand Period of the month.
kWh = The total quantity of energy which is delivered during such
Demand Period to the point of delivery or interconnection in
accordance with Section 3.3.4.
rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs)
delivered during such Demand Period to the point of delivery or
interconnection in accordance with Section 3.3.4.
3.3.3. Penalty Charge for Power Factor
The Customer shall be assessed a penalty for all Demand Periods of
a month where the power factor is less than 95 percent lagging. For any
Demand Period during a particular month such penalty shall be in
accordance with the following formula:
C = D x (0.95-LPF) x $0.10
with the factors defined as follows:
C = The charge in dollars to be assessed for any particular Demand
Period of such month that the determination of power factor ``PF''
is calculated to be less than 95 percent lagging.
D = The Customer's demand in kilowatts at the point of delivery for
such Demand Period in which a low power factor was calculated.
LPF = The lagging power factor, if any, determined by the formula
``PF'' for such Demand Period.
If C is negative, then C = zero (0).
3.3.4. Applicability of Power Factor Penalty
The Power Factor Penalty is applicable to radial interconnections
with the System of Southwestern. The total Power Factor Penalty for any
month shall be the sum of all charges ``C'' for all Demand Periods of
such month. No penalty is assessed for leading power factor.
Southwestern, in its sole judgment and at its sole option, may
determine whether power factor calculations should be applied to (i) a
single physical point of delivery, (ii) a combination of physical
points of delivery where a Customer has a single, electrically
integrated load, (iii) or interconnections. The general criteria for
such decision shall be that, given the configuration of the Customer's
and Southwestern's systems, Southwestern will determine, in its sole
judgment and at its sole option, whether the power factor calculation
more accurately assesses the detrimental impact on Southwestern's
system when the above formula is calculated for a single physical point
of delivery, a combination of physical points of delivery, or for an
interconnection as specified by an Interconnection Agreement.
Southwestern, at its sole option, may reduce or waive Power Factor
Penalties when, in Southwestern's sole judgment, low power factor
conditions were not detrimental to the System of Southwestern due to
particular loading and voltage conditions at the time the power factor
dropped below 95 percent lagging.
4. Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions
4.1. Real Power Losses
Customers are required to self-provide all Real Power Losses for
non-Federal energy transmitted by Southwestern on behalf of such
Customers under the provisions detailed below.
Real Power Losses are computed as four (4) percent of the total
amount of non-Federal energy transmitted by Southwestern. The
Customer's monthly Real Power Losses are computed each month on a
megawatthour basis as follows:
ML = 0.04 x NFE
with the factors defined as follows:
ML = The total monthly loss energy, rounded to the nearest
megawatthour, to be scheduled by a Customer for receipt by
Southwestern for Real Power Losses associated with non-Federal
energy transmitted on behalf of such Customer; and
NFE = The amount of non-Federal energy that was transmitted by
Southwestern on behalf of a Customer during a particular month.
The Customer must schedule or cause to be scheduled to
Southwestern, Real Power Losses for which it is responsible subject to
the following conditions:
4.1.1. The Customer shall schedule and deliver Real Power Losses
back to Southwestern during the second month after they were incurred
by Southwestern in the transmission of the Customer's non-Federal power
and energy over the System of Southwestern unless such Customer has
accounted for Real Power Losses as part of a metering arrangement with
Southwestern.
4.1.2. On or before the twentieth day of each month, Southwestern
shall determine the amount of non-Federal loss energy it provided on
behalf of the Customer during the previous month and provide a written
schedule to the Customer setting forth hour-by-hour the quantities of
non-Federal energy to be delivered to Southwestern as losses during the
next month.
4.1.3. Real Power Losses not delivered to Southwestern by the
Customer, according to the schedule provided, during the month in which
such losses are due shall be billed by Southwestern to the Customer to
adjust the end-of-month loss energy balance to zero (0) megawatthours
and the Customer shall be obliged to purchase such energy at the
following rates:
------------------------------------------------------------------------
Rate per
Months associated with charge kilowatthour
------------------------------------------------------------------------
March, April, May, October, November, December............ $0.15
January, February, June, July, August, September.......... 0.30
------------------------------------------------------------------------
4.1.4. Real Power Losses delivered to Southwestern by the Customer
in excess of the losses due during the month shall be purchased by
Southwestern from the Customer at a rate per megawatthour equal to
Southwestern's rate per megawatthour for Supplemental Peaking Energy,
as set forth in Southwestern's then-effective Rate Schedule for Hydro
Peaking Power to adjust such hourly end-of-month loss energy balance to
zero (0) megawatthours.
United States Department of Energy
Southwestern Power Administration
Rate Schedule NFTS-11 \1\
---------------------------------------------------------------------------
\1\ Supersedes Rate Schedule NFTS-09.
---------------------------------------------------------------------------
Wholesale Rates for Non-Federal Transmission/Interconnection Facilities
Service
Effective: During the period January 1, 2012, through September 30,
2015, in accordance with interim approval from Rate Order No. SWPA-63
issued by the Deputy Secretary of Energy on January 9, 2012, and
pursuant to final approval by the Federal Energy Regulatory Commission.
[[Page 2528]]
Available: In the region of the System of Southwestern.
Applicable: To Customers which have executed Service Agreements
with Southwestern for the transmission of non-Federal power and energy
over the System of Southwestern or for its use for interconnections.
Southwestern will provide services over those portions of the System of
Southwestern in which the Administrator, Southwestern, in his or her
sole judgment, has determined that uncommitted transmission and
transformation capacities in the System of Southwestern are and will be
available in excess of the capacities required to market Federal power
and energy pursuant to Section 5 of the Flood Control Act of 1944 (58
Stat. 887,890; 16 U.S.C. 825s).
Character and Conditions of Service: Three-phase, alternating
current, delivered at approximately 60 Hertz, at the nominal
voltage(s), at the point(s) specified by Service Agreement or
Transmission Service Transaction.
1. Definitions of Terms
1.1. Ancillary Services
The services necessary to support the transmission of capacity and
energy from resources to loads while maintaining reliable operation of
the System of Southwestern in accordance with good utility practice,
which include the following:
1.1.1. Scheduling, System Control, and Dispatch Service is provided
by Southwestern as Balancing Authority Area operator and is in regard
to interchange and load-match scheduling and related system control and
dispatch functions.
1.1.2. Reactive Supply and Voltage Control from Generation Sources
Service is provided at transmission facilities in the System of
Southwestern to produce or absorb reactive power and to maintain
transmission voltages within specific limits.
1.1.3. Regulation and Frequency Response Service is the continuous
balancing of generation and interchange resources accomplished by
raising or lowering the output of on-line generation as necessary to
follow the moment-by-moment changes in load and to maintain frequency
within a Balancing Authority Area.
1.1.4. Spinning Operating Reserve Service maintains generating
units on-line, but loaded at less than maximum output, which may be
used to service load immediately when disturbance conditions are
experienced due to a sudden loss of generation or load.
1.1.5. Supplemental Operating Reserve Service provides an
additional amount of operating reserve sufficient to reduce Area
Control Error to zero within 10 minutes following loss of generating
capacity which would result from the most severe single contingency.
1.1.6. Energy Imbalance Service corrects for differences over a
period of time between schedules and actual hourly deliveries of energy
to a load. Energy delivered or received within the authorized bandwidth
for this service is accounted for as an inadvertent flow and is
returned to the providing party by the receiving party in accordance
with standard utility practice or a contractual arrangement between the
parties.
1.2. Customer
The entity which is utilizing and/or purchasing services from
Southwestern pursuant to this Rate Schedule.
1.3. Demand Period
The period of time used to determine maximum integrated rates of
delivery for the purpose of power accounting which is the 60-minute
period that begins with the change of hour.
1.4. Firm Point-to-Point Transmission Service
Transmission service reserved on a firm basis between specific
points of receipt and delivery pursuant to either a Firm Transmission
Service Agreement or to a Transmission Service Transaction.
1.5. Interconnection Facilities Service
A service that provides for the use of the System of Southwestern
to deliver energy and/or provide system support at an interconnection.
1.6. Network Integration Transmission Service
Transmission service provided under Part III of Southwestern's Open
Access Transmission Service Tariff which provides the Customer with
firm transmission service for the delivery of capacity and energy from
the Customer's resources to the Customer's load.
1.7. Non-Firm Point-to-Point Transmission Service
Transmission service reserved on a non-firm basis between specific
points of receipt and delivery pursuant to a Transmission Service
Transaction.
1.8. Point of Delivery
Either a single physical point to which electric power and energy
are delivered from the System of Southwestern, or a specified set of
delivery points which together form a single, electrically integrated
load.
1.9. Secondary Transmission Service
Service that is associated with Firm Point-to-Point Transmission
Service and Network Integration Transmission Service. For Firm Point-
to-Point Transmission Service, it consists of transmission service
provided on an as-available, non-firm basis, scheduled within the
limits of a particular capacity reservation for transmission service,
and scheduled from points of receipt, or to points of delivery, other
than those designated in a Long-Term Firm Transmission Service
Agreement or a Transmission Service Transaction for Firm Point-to-Point
Transmission Service. For Network Integration Transmission Service,
Secondary Transmission Service consists of transmission service
provided on an as-available, non-firm basis, from resources other than
the network resources designated in a Network Transmission Service
Agreement, to meet the Customer's network load. The charges for
Secondary Transmission Service, other than Ancillary Services, are
included in the applicable capacity charges for Firm Point-to-Point
Transmission Service and Network Integration Transmission Service.
1.10. Service Agreement
A contract executed between a Customer and Southwestern for the
transmission of non-Federal power and energy over the System of
Southwestern or for interconnections which include the following:
1.10.1. Firm Transmission Service Agreement provides for reserved
transmission capacity on a firm basis, for a particular point-to-point
delivery path.
1.10.2. Interconnection Agreement provides for the use of the
System of Southwestern and recognizes the exchange of mutual benefits
for such use or provides for application of a charge for
Interconnection Facilities Service.
1.10.3. Network Transmission Service Agreement provides for the
Customer to request firm transmission service for the delivery of
capacity and energy from the Customer's network resources to the
Customer's network load, for a period of one year or more.
1.10.4. Non-Firm Transmission Service Agreement provides for the
Customer to request transmission service on a non-firm basis.
1.11. Service Request
The request made under a Transmission Service Agreement through the
Southwest Power Pool, Inc. (hereinafter ``SPP'') Open Access Same-
[[Page 2529]]
Time Information System (hereinafter ``OASIS'') for reservation of
transmission capacity over a particular point-to-point delivery path
for a particular period. The Customer must submit hourly schedules for
actual service in addition to the Service Request.
1.12. System of Southwestern
The transmission and related facilities owned by Southwestern, and/
or the generation, transmission, and related facilities owned by
others, the capacity of which, by contract, is available to and
utilized by Southwestern to satisfy its contractual obligations to the
Customer.
1.13. Transmission Service Transaction
A Service Request that has been approved by SPP.
1.14. Uncontrollable Force
Any force which is not within the control of the party affected,
including, but not limited to failure of water supply, failure of
facilities, flood, earthquake, storm, lightning, fire, epidemic, war,
riot, civil disturbance, labor disturbance, sabotage, Congressional
act, or restraint by court of general jurisdiction, which by exercise
of due diligence and foresight such party could not reasonably have
been expected to avoid.
2. Wholesale Rates, Terms, and Conditions for Firm Point-to-Point
Transmission Service, Non-Firm Point-to-Point Transmission Service,
Network Integration Transmission Service, and Interconnection
Facilities Service
2.1. Firm Point-to-Point Transmission Service Rates, Terms, and
Conditions
2.1.1. Monthly Capacity Charge for Firm Point-to-Point Transmission
Service
$1.28 per kilowatt of transmission capacity reserved in increments
of one month of service or invoiced in accordance with a longer term
agreement.
2.1.2. Weekly Capacity Charge for Firm Point-to-Point Transmission
Service
$0.320 per kilowatt of transmission capacity reserved in increments
of one week of service.
2.1.3. Daily Capacity Charge for Firm Point-to-Point Transmission
Service
$0.0582 per kilowatt of transmission capacity reserved in
increments of one day of service.
2.1.4. Services Associated With Capacity Charge for Firm Point-to-Point
Transmission Service
The capacity charge for Firm Point-to-Point Transmission Service
includes Secondary Transmission Service, but does not include charges
for Ancillary Services associated with actual schedules.
2.1.5. Applicability of Capacity Charge for Firm Point-to-Point
Transmission Service
Capacity charges for Firm Point-to-Point Transmission Service are
applied to quantities reserved by contract under a Firm Transmission
Service Agreement or in accordance with a Transmission Service
Transaction.
A Customer, unless otherwise specified by contract, will be
assessed capacity charges on the greatest of (1) the highest metered
demand at any particular Point of Delivery during a particular month,
rounded up to the nearest whole megawatt, or (2) the highest metered
demand recorded at such Point of Delivery during any of the previous 11
months, rounded up to the nearest whole megawatt, or (3) the capacity
reserved by contract; which amount shall be considered such Customer's
reserved capacity. Secondary Transmission Service for such Customer
shall be limited during any month to the most recent metered demand on
which that Customer is billed or to the capacity reserved by contract,
whichever is greater.
2.2. Non-Firm Point-to-Point Transmission Service Rates, Terms, and
Conditions
2.2.1. Monthly Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge for Firm Point-to-Point
Transmission Service reserved in increments of one month.
2.2.2. Weekly Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge divided by 4 for Firm
Point-to-Point Transmission Service reserved in increments of one week.
2.2.3. Daily Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge divided by 22 for Firm
Point-to-Point Transmission Service reserved in increments of one day.
2.2.4. Hourly Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge divided by 352 for Firm
Point-to-Point Transmission Service reserved in increments of one hour.
2.2.5. Applicability of Charges for Non-Firm Point-to-Point
Transmission Service
Capacity charges for Non-Firm Point-to-Point Transmission Service
are applied to quantities reserved under a Transmission Service
Transaction, and do not include charges for Ancillary Services.
2.3. Network Integration Transmission Service Rates, Terms, and
Conditions
2.3.1. Annual Revenue Requirement for Network Integration Transmission
Service
$14,267,100.
2.3.2. Monthly Revenue Requirement for Network Integration Transmission
Service
$1,188,925.
2.3.3. Net Capacity Available for Network Integration Transmission
Service
930,000 kilowatts.
2.3.4. Monthly Capacity Charge for Network Integration Transmission
Service
$1.28 per kilowatt of Network Load (charge derived from $1,188,925
/ 930,000 kilowatts).
2.3.5. Applicability of Charges for Network Integration Transmission
Service
Network Integration Transmission Service is available only for
deliveries of non-Federal power and energy, and is applied to the
Customer utilizing such service exclusive of any deliveries of Federal
power and energy. The capacity on which charges for any particular
Customer utilizing this service is determined on the greatest of (1)
the highest metered demand at any particular point of delivery during a
particular month, rounded up to the nearest whole megawatt, or (2) the
highest metered demand recorded at such point of delivery during any of
the previous 11 months, rounded up to the nearest whole megawatt.
For a Customer taking Network Integration Transmission Service who
is also taking delivery of Federal Power and Energy, the highest
metered demand shall be determined by subtracting the energy scheduled
for delivery of Federal Power and Energy for any hour from the metered
demand for such hour.
Secondary Transmission Service for a Customer shall be limited
during any month to the most recent highest metered demand on which
such Customer is billed. Charges for
[[Page 2530]]
Ancillary Services shall also be assessed.
2.4. Interconnection Facilities Service Rates, Terms, and Conditions
2.4.1. Monthly Capacity Charge for Interconnection Facilities Service
$1.28 per kilowatt.
2.4.2. Applicability of Capacity Charge for Interconnection Facilities
Service
Any Customer that requests an interconnection from Southwestern
which, in Southwestern's sole judgment and at its sole option, does not
provide commensurate benefits or compensation to Southwestern for the
use of its facilities shall be assessed a capacity charge for
Interconnection Facilities Service. For any month, charges for
Interconnection Facilities Service shall be assessed on the greater of
(1) that month's actual highest metered demand, or (2) the highest
metered demand recorded during the previous eleven months, as metered
at the interconnection. The use of Interconnection Facilities Service
will be subject to power factor provisions as specified in this Rate
Schedule. The interconnection customer shall also schedule and deliver
Real Power Losses pursuant to the provisions of this Rate Schedule
based on metered flow through the interconnection where Interconnection
Facilities Services is assessed.
2.5. Transformation Service Rates, Terms, and Conditions
2.5.1. Monthly Capacity Charge for Transformation Service
$0.42 per kilowatt will be assessed for capacity used to deliver
energy at any point of delivery at which Southwestern provides
transformation service for deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
2.5.2. Applicability of Capacity Charge for Transformation Service
Unless otherwise specified by contract, for any particular month, a
charge for transformation service will be assessed on the greater of
(1) that month's highest metered demand, or (2) the highest metered
demand recorded during the previous 11 months, at any point of
delivery. For the purpose of this Rate Schedule, the highest metered
demand will be based on all deliveries, of both Federal and non-Federal
energy, from the System of Southwestern, at such point during such
month.
2.6. Ancillary Services Rates, Terms, and Conditions
2.6.1. Capacity Charges for Ancillary Services
2.6.1.1. Scheduling, System Control, and Dispatch Service
Monthly rate of $0.09 per kilowatt of transmission capacity
reserved in increments of one month of service or invoiced in
accordance with a Long-Term Firm Transmission Service Agreement or
Network Transmission Service Agreement.
Weekly rate of $0.023 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.0041 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00026 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.6.1.2. Reactive Supply and Voltage Control From Generation Sources
Service
Monthly rate of $0.04 per kilowatt of transmission capacity
reserved in increments of one month of service or invoiced in
accordance with a Long-Term Firm Transmission Service Agreement or
Network Transmission Service Agreement.
Weekly rate of $0.010 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.0018 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00011 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.6.1.3. Regulation and Frequency Response Service
Monthly rate of $0.09 per kilowatt of transmission capacity
reserved in increments of one month of service or invoiced in
accordance with a Long-Term Firm Transmission Service Agreement or
Network Transmission Service Agreement plus the Regulation Purchased
Adder as defined in Section 2.6.5 of this Rate Schedule.
Weekly rate of $0.023 per kilowatt of transmission capacity
reserved in increments of one week of service plus the Regulation
Purchased Adder as defined in Section 2.6.5 of this Rate Schedule.
Daily rate of $0.0041 per kilowatt of transmission capacity
reserved in increments of one day of service plus the Regulation
Purchased Adder as defined in Section 2.6.5 of this Rate Schedule.
Hourly rate of $0.00026 per kilowatt of transmission energy
delivered as non-firm transmission service plus the Regulation
Purchased Adder as defined in Section 2.6.5 of this Rate Schedule.
2.6.1.4. Spinning Operating Reserve Service
Monthly rate of $0.0112 per kilowatt of transmission capacity
reserved in increments of one month of service or invoiced in
accordance with a Long-Term Firm Transmission Service Agreement or
Network Transmission Service Agreement.
Weekly rate of $0.0028 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.00051 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00003 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.6.1.5. Supplemental Operating Reserve Service
Monthly rate of $0.0112 per kilowatt of transmission capacity
reserved in increments of one month of service or invoiced in
accordance with a Long-Term Firm Transmission Service Agreement or
Network Transmission Service Agreement.
Weekly rate of $0.0028 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.00051 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00003 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.6.1.6. Energy Imbalance Service
$0.0 per kilowatt for all reservation periods.
2.6.2. Availability of Ancillary Services
Scheduling, System Control, and Dispatch Service and Reactive
Supply and Voltage Control from Generation Sources Service are
available for all transmission services in and from the System of
Southwestern and shall be provided by Southwestern. Regulation and
Frequency Response Service and Energy Imbalance Service are available
only for deliveries of power and ene