Cumberland System, 42764-42774 [2013-17129]

Agencies

• DEPARTMENT OF ENERGY
• Southeastern Power Administration

[Federal Register Volume 78, Number 137 (Wednesday, July 17, 2013)]
[Notices]
[Pages 42764-42774]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-17129]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Southeastern Power Administration


Cumberland System

AGENCY: Southeastern Power Administration (Southeastern), Department of 
Energy.

ACTION: Notice of rate extension.

-----------------------------------------------------------------------

SUMMARY: The Deputy Secretary, Department of Energy, extended on an 
interim basis rate schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, 
CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3. These rate schedules are 
applicable to Southeastern power sold to existing preference customers 
in Alabama, Georgia, Illinois, Kentucky, Mississippi, North Carolina, 
Tennessee, and Virginia. The rate schedules are extended through 
September 30, 2015.

DATES: Approval of the rate extension is effective October 1, 2013.

FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs III, Assistant 
Administrator, Finance and Marketing, Southeastern Power 
Administration, Department of Energy, 1166 Athens Tech Road, Elberton, 
Georgia 30635-6711, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by 
Order issued December 22, 2011, in Docket No. EF11-13-000 (137 FERC ] 
62,249), confirmed and approved Wholesale Power Rate Schedules CBR-1-H, 
CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-1-H, CTVI-1-A, and 
Replacement-3 through September 30, 2013. This order extends these rate 
schedules on an interim basis.

    Dated: July 10, 2013.
Daniel B. Poneman,
Deputy Secretary.

Deputy Secretary

Rate Order No. SEPA-57

    In the Matter of:

Southeastern Power Administration Cumberland System Rates

Order Confirming and Approving Power Rates on an Interim Basis

    Pursuant to Sections 302(a) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern 
Power Administration (Southeastern), were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated to Southeastern's 
Administrator the authority to develop power and transmission rates for 
Southeastern customers and delegated to the Deputy Secretary of Energy 
the authority to extend and place in effect such rates on an interim 
basis. This rate is issued by the Deputy Secretary pursuant to that 
delegation order.

Background

    Power from the Cumberland Projects is presently sold under 
Wholesale Power Rate Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-
I, CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3. These rate schedules 
were approved by the Federal Energy Regulatory Commission (FERC) in 
docket number EF11-13-000 on December 22, 2011, for a period ending 
September 30, 2013 (137 FERC ] 62,249).

Public Notice and Comment

    Notice of a proposed rate extension was published in the Federal 
Register on March 28, 2013 (78 FR 18976). The notice advised interested 
parties of a proposal to extend the existing rate schedules for a two-
year period, from October 1, 2013, through September 30, 2015. Written 
comments were due on or before April 29, 2013. Written comments were 
received from seven sources.
    Comments received from interested parties are summarized below. 
Southeastern's response follows each comment.
    Comment 1: The customers support the proposed extension.
    Response 1: Southeastern will recommend the extension to the Deputy 
Secretary of the Department of Energy.
    Comment 2: Future rate increases may drive Southeastern's rates to 
the point where it would no longer be economical to purchase 
Southeastern power. Once the full cost of repairs of the Wolf Creek and 
Center Hill Projects are included, the customers estimate Southeastern 
power will become uneconomical during nearly eighty percent of the 
dispatchable hours. The potential price of the Southeastern resources 
has been projected to exceed the expected market prices the majority of 
the time.
    Response 2: Southeastern is concerned the cost of power 
Southeastern is responsible for marketing may exceed market rates. 
Southeastern will work with the U.S. Army Corps of Engineers (Corps) 
and the customers to ensure costs are managed and charged appropriately 
in an effort to maintain competitive rates.
    Comment 3: At present, the Corps has not completed the repair work 
at the Wolf Creek and Center Hill Projects. It is appropriate that 
Southeastern set a rate that does not include any of the repair costs 
at this time.
    Response 3: The cost of the repair work at Wolf Creek and Center 
Hill has not been included in the proposed rate extension.
    Comment 4: While the Corps has declined to consider the appropriate 
statutory language in the Dam Safety Act that would mitigate the cost 
that hydropower customers may be asked to pay, Southeastern retains the 
full authority to ensure that the eventual rates for power will be the 
lowest possible rates consistent with sound business principles.
    Response 4: Southeastern agrees that it retains full authority to 
ensure that the rates for power will be the lowest possible rates 
consistent with sound business principles within the meaning of Section 
5 of the Flood Control Act of 1944. As noted above, Southeastern has 
not included the repair costs in the proposed rate extension.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in January 2013, for the Cumberland System, shows that 
the existing rates are adequate to meet repayment criteria. The 
Administrator of Southeastern Power Administration (Administrator) has 
certified that the rates are consistent with applicable law and that 
they are the lowest possible rates to customers consistent with sound 
business principles.

Environmental Impact

    Southeastern has reviewed the possible environmental impacts of the 
rate extension under consideration and has concluded that, because the 
adjusted rates would not significantly affect the quality of the human 
environment within the meaning of the National Environmental Policy Act 
of 1969, the proposed action is not a major

[[Page 42765]]

Federal action for which preparation of an Environmental Impact 
Statement is required.

Availability of Information

    Information regarding these rates, including studies and other 
supporting materials, is available for public review in the offices of 
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, 
Georgia 30635.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve on an 
interiml basis, effective October 1, 2013, attached Wholesale Power 
Rate Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-
1-H, CTVI-1-A, and Replacement-3. The Rate Schedules shall remain in 
effect through September 30, 2015, unless such period is extended or 
until the FERC confirms and approves substitute Rate Schedules on a 
final basis.
Dated:

Daniel B. Poneman
Deputy Secretary

Wholesale Power Rate Schedule CBR-1-H

    Availability:
    This rate schedule shall be available to Big Rivers Electric 
Corporation and includes the City of Henderson, Kentucky (hereinafter 
called the Customer).
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power 
shall be delivered at nominal voltages of 13,800 volts and 161,000 
volts to the transmission system of Big Rivers Electric Corporation.
    Points of Delivery:
    Capacity and energy delivered to the Customer will be delivered at 
points of interconnection of the Customer at the Barkley Project 
Switchyard, at a delivery point in the vicinity of the Paradise steam 
plant and at such other points of delivery as may hereafter be agreed 
upon by the Government and Tennessee Valley Authority (TVA).
    Billing Month:
    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective, on the last 
day of each calendar month.
    Conditions of Service:
    The customer shall at its own expense provide, install, and 
maintain on its side of each delivery point the equipment necessary to 
protect and control its own system. In so doing, the installation, 
adjustment, and setting of all such control and protective equipment at 
or near the point of delivery shall be coordinated with that which is 
installed by and at the expense of TVA on its side of the delivery 
point.
    Southeastern is including three rate alternatives. All of the rate 
alternatives have a revenue requirement of $59,600,000.

Rate Scenario 1--Interim Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a 
precaution to prevent failure of the dams, Southeastern is not able to 
provide peaking capacity to these customers. Southeastern implemented 
an Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario 1 will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    Transmission:
    The Customer will pay a ratable percent listed below of the credit 
the Administrator of Southeastern Power Administration (Administrator) 
provides to the TVA as consideration for delivering capacity and energy 
for the account of the Administrator to points of delivery of Other 
Customers or interconnection points of delivery with other electric 
systems for the benefit of Other Customers, as agreed by contract 
between the Administrator and TVA.

Big Rivers Electric Corporation, 32.660%
City of Henderson, Kentucky, 2.202%

    Energy to be Furnished by the Government:
    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Rate Scenario 2--Cost Recovered From Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be scheduled. The revenue 
requirement under this alternative is $59,600,000, the same as the 
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will 
receive revenues from capacity that can be scheduled and the remainder 
from energy, at charges that will be determined at the time. Under 
Scenario 2, the cost of the TVA transmission credit will be passed to 
customers outside the TVA System. This rate alternative will be in 
effect when the Corps modifies operation of the Wolf Creek Project and 
the Center Hill Project to allow some of the capacity scheduled. When 
the lake level rises and capacity is available, the capacity will be 
allocated on an interim basis to the customers.

Rate Scenario 3--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on the operation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $4.245 per kilowatt/month of total contract demand.
    Energy Charge:
    None.
    Energy to be Furnished by the Government:
    The Government shall make available each contract year to the 
customer from the Projects through the customer's interconnections with 
TVA and the customer will schedule and accept an allocation of 1500 
kilowatt-hours of energy delivered at the TVA border for each kilowatt 
of contract demand. A contract year is defined as the 12 months 
beginning July 1 and ending at midnight June 30 of the following 
calendar year. The energy made available for a contract year shall be

[[Page 42766]]

scheduled monthly such that the maximum amount scheduled in any month 
shall not exceed 240 hours per kilowatt of the customer's contract 
demand and the minimum amount scheduled in any month shall not be less 
than 60 hours per kilowatt of the customer's contract demand. The 
customer may request and the Government may approve energy scheduled 
for a month greater than 240 hours per kilowatt of the customer's 
contract demand; provided, that the combined schedule of all 
Southeastern customers outside TVA and served by TVA does not exceed 
240 hours per kilowatt of the total contract demands of these 
customers.
    Service Interruption:
    When delivery of capacity is interrupted or reduced due to 
conditions on the Administrator's system beyond his control, the 
Administrator will continue to make available the portion of his 
declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.010

Wholesale Power Rate Schedule CSI-1-H

    Availability:
    This rate schedule shall be available to Southern Illinois Power 
Cooperative (hereinafter the Customer).
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power 
shall be delivered at nominal voltages of 13,800 volts and 161,000 
volts to the transmission system of Big Rivers Electric Corporation.

Points of Delivery

    Capacity and energy delivered to the Customer will be delivered at 
points of interconnection of the Customer at the Barkley Project 
Switchyard, at a delivery point in the vicinity of the Paradise steam 
plant and at such other points of delivery as may hereafter be agreed 
upon by the Government and Tennessee Valley Authority (TVA).
    Billing Month:
    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective, on the last 
day of each calendar month.
    Southeastern Power Administration (Southeastern) is including three 
rate alternatives. All of the rate alternatives have a revenue 
requirement of $59,600,000.

Rate Scenario 1--Interim Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a 
precaution to prevent failure of the dams, Southeastern is not able to 
provide peaking capacity to these customers. Southeastern implemented 
an Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario 1 will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    Transmission Charge:
    The Customer will pay 5.138 percent of the credit the Administrator 
of Southeastern Power Administration (Administrator) provides to the 
TVA as consideration for delivering capacity and energy for the account 
of the Administrator to points of delivery of Other Customers or 
interconnection points of delivery with other electric systems for the 
benefit of Other Customers, as agreed by contract between the 
Administrator and TVA.
    Energy to be Furnished by the Government:
    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Rate Scenario 2--Cost Recovered From Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be scheduled. The revenue 
requirement under this alternative is $59,600,000, the same as the 
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will 
receive revenues from capacity that can be scheduled and the remainder 
from energy, at charges that will be determined at the time. Under 
Scenario 2, the cost of the TVA transmission credit will be passed to 
customers outside the TVA System. This rate alternative will be in 
effect when the Corps modifies operation of the Wolf Creek Project and 
the Center Hill Project to allow some of the capacity scheduled. When 
the lake level rises and capacity is available, the capacity will be 
allocated on an interim basis to the customers.

Rate Scenario 3--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on the operation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:

[[Page 42767]]

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $4.245 per kilowatt/month of total contract demand.
    Energy Charge:
    None.
    Energy to be Furnished by the Government:
    The Government shall make available each contract year to the 
customer from the Projects through the customer's interconnections with 
TVA and the customer will schedule and accept an allocation of 1500 
kilowatt-hours of energy delivered at the TVA border for each kilowatt 
of contract demand. A contract year is defined as the 12 months 
beginning July 1 and ending at midnight June 30 of the following 
calendar year. The energy made available for a contract year shall be 
scheduled monthly such that the maximum amount scheduled in any month 
shall not exceed 240 hours per kilowatt of the customer's contract 
demand and the minimum amount scheduled in any month shall not be less 
than 60 hours per kilowatt of the customer's contract demand. The 
customer may request and the Government may approve energy scheduled 
for a month greater than 240 hours per kilowatt of the customer's 
contract demand; provided, that the combined schedule of all 
Southeastern customers outside TVA and served by TVA does not exceed 
240 hours per kilowatt of the total contract demands of these 
customers.
    Service Interruption:
    When delivery of capacity is interrupted or reduced due to 
conditions on the Administrator's system beyond his control, the 
Administrator will continue to make available the portion of his 
declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.011

Wholesale Power Rate Schedule CEK-1-H

    Availability:
    This rate schedule shall be available to East Kentucky Power 
Cooperative (hereinafter called the Customer).
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and power available from the Laurel 
Project and sold in wholesale quantities.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power 
shall be delivered at nominal voltages of 161,000 volts to the 
transmission systems of the Customer.

Points of Delivery

    The points of delivery will be the 161,000 volt bus of the Wolf 
Creek Power Plant and the 161,000 volt bus of the Laurel Project. Other 
points of delivery may be as agreed upon.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective, on the last 
day of each calendar month.
    Conditions of Service:
    The customer shall at its own expense provide, install, and 
maintain on its side of each delivery point the equipment necessary to 
protect and control its own system. In so doing, the installation, 
adjustment and setting of all such control and protective equipment at 
or near the point of delivery shall be coordinated with that which is 
installed by and at the expense of the Tennessee Valley Authority (TVA) 
on its side of the delivery point.
    Southeastern Power Administration (Southeastern) is including three 
rate alternatives. All of the rate alternatives have a revenue 
requirement of $59,600,000.

Rate Scenario 1--Interim Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a 
precaution to prevent failure of the dams, Southeastern is not able to 
provide peaking capacity to these customers. Southeastern implemented 
an Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario 1 will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    Transmission Charge:
    The Customer will pay 31.192 percent of the credit the 
Administrator of Southeastern Power Administration (Administrator) 
provides to the TVA as consideration for delivering capacity and energy 
for the account of the Administrator to points of delivery of Other 
Customers or interconnection points of delivery with other electric 
systems for the benefit of Other Customers, as agreed by contract 
between the Administrator and TVA.
    Energy to be Furnished by the Government:
    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Rate Scenario 2--Cost Recovered from Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be

[[Page 42768]]

scheduled. The revenue requirement under this alternative is 
$59,600,000, the same as the revenue requirement in Scenarios 1 and 3. 
The Rate Scenario 2 will receive revenues from capacity that can be 
scheduled and the remainder from energy, at charges that will be 
determined at the time. Under Scenario 2, the cost of the TVA 
transmission credit will be passed to customers outside the TVA System. 
This rate alternative will be in effect when the Corps modifies 
operation of the Wolf Creek Project and the Center Hill Project to 
allow some of the capacity scheduled. When the lake level rises and 
capacity is available, the capacity will be allocated on an interim 
basis to the customers.

Rate Scenario 3--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on the operation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $2.950 per kilowatt/month of total contract demand.
    Energy Charge:
    10.358 mills per kilowatt-hour.
    Energy to be Furnished by the Government:
    The Government shall make available each contract year to the 
customer from the Projects through the customer's interconnections with 
TVA and the customer will schedule and accept an allocation of 1500 
kilowatt-hours of energy delivered at the TVA border for each kilowatt 
of contract demand plus 369 kilowatt-hours of energy delivered for each 
kilowatt of contract demand to supplement energy available at the 
Laurel Project. A contract year is defined as the 12 months beginning 
July 1 and ending at midnight June 30 of the following calendar year. 
The energy made available for a contract year shall be scheduled 
monthly such that the maximum amount scheduled in any month shall not 
exceed 240 hours per kilowatt of the customer's contract demand and the 
minimum amount scheduled in any month shall not be less than 60 hours 
per kilowatt of the customer's contract demand. The customer may 
request and the Government may approve energy scheduled for a month 
greater than 240 hours per kilowatt of the customer's contract demand; 
provided, that the combined schedule of all Southeastern customers 
outside TVA and served by TVA does not exceed 240 hours per kilowatt of 
the total contract demands of these customers.
    Service Interruption:
    When delivery of capacity is interrupted or reduced due to 
conditions on the Administrator's system beyond his control, the 
Administrator will continue to make available the portion of his 
declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.012

Wholesale Power Rate Schedule CM-1-H

    Availability:
    This rate schedule shall be available to the South Mississippi 
Electric Power Association, Municipal Energy Agency of Mississippi, and 
Mississippi Delta Energy Agency (hereinafter called the Customers).
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power 
shall be delivered at nominal voltages of 161,000 volts to the 
transmission systems of Mississippi Power and Light.

Points of Delivery

    The points of delivery will be at interconnection points of the 
Tennessee Valley Authority (TVA) system and the Mississippi Power and 
Light system. Other points of delivery may be as agreed upon.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective on the last day 
of each calendar month.
    Southeastern Power Administration (Southeastern) is including three 
rate alternatives. All of the rate alternatives have a revenue 
requirement of $59,600,000.

Rate Scenario 1--Interim Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a 
precaution to prevent failure of the dams, Southeastern is not able to 
provide peaking capacity to these customers. Southeastern implemented 
an Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario 1 will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    Transmission Charge:
    The Customer will pay a ratable percent listed below of the credit 
the

[[Page 42769]]

Administrator of Southeastern Power Administration (Administrator) 
provides to the TVA as consideration for delivering capacity and energy 
for the account of the Administrator to points of delivery of Other 
Customers or interconnection points of delivery with other electric 
systems for the benefit of Other Customers, as agreed by contract 
between the Administrator and TVA.

Mississippi Delta Energy Agency, 2.058%
Municipal Energy Agency of Mississippi, 3.447%
South Mississippi EPA, 9.358%

    Energy to be Furnished by the Government:
    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U.S. Army Corps of 
Engineers.

Rate Scenario 2--Cost Recovered From Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be scheduled. The revenue 
requirement under this alternative is $59,600,000, the same as the 
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will 
receive revenues from capacity that can be scheduled and the remainder 
from energy, at charges that will be determined at the time. Under 
Scenario 2, the cost of the TVA transmission credit will be passed to 
customers outside the TVA System. This rate alternative will be in 
effect when the Corps modifies operation of the Wolf Creek Project and 
the Center Hill Project to allow some of the capacity scheduled. When 
the lake level rises and capacity is available, the capacity will be 
allocated on an interim basis to the customers.

Rate Scenario--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on the operation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $4.245 per kilowatt/month of total contract demand.
    Energy Charge:
    None.
    Energy to be Furnished by the Government:
    The Government shall make available each contract year to the 
Customer from the Projects through the Customer's interconnections with 
TVA and the Customer will schedule and accept an allocation of 1500 
kilowatt-hours of energy delivered at the TVA border for each kilowatt 
of contract demand. A contract year is defined as the 12 months 
beginning July 1 and ending at midnight June 30 of the following 
calendar year. The energy made available for a contract year shall be 
scheduled monthly such that the maximum amount scheduled in any month 
shall not exceed 240 hours per kilowatt of the Customer's contract 
demand and the minimum amount scheduled in any month shall not be less 
than 60 hours per kilowatt of the Customer's contract demand. The 
Customer may request and the Government may approve energy scheduled 
for a month greater than 240 hours per kilowatt of the Customer's 
contract demand; provided, that the combined schedule of all 
Southeastern Customers outside TVA and served by TVA does not exceed 
240 hours per kilowatt of the total contract demands of these 
Customers.
    In the event that any portion of the capacity allocated to the 
Customers is not initially delivered to the Customers as of the 
beginning of a full contract year, the 1500 kilowatt hours shall be 
reduced \1/12\ for each month of that year prior to initial delivery of 
such capacity.
    Service Interruption:
    When delivery of capacity is interrupted or reduced due to 
conditions on the Administrator's system beyond his control, the 
Administrator will continue to make available the portion of his 
declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.013

Wholesale Power Rate Schedule CC-1-I

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives served through the facilities of Carolina Power & Light 
Company, Western Division (hereinafter called the Customers).
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power 
shall be delivered at nominal voltages of 161,000 volts to the 
transmission system of Carolina Power & Light Company, Western 
Division.

Points of Delivery

    The points of delivery will be at interconnecting points of the 
Tennessee Valley Authority (TVA) system and the Carolina Power & Light 
Company, Western Division system. Other points of delivery may be as 
agreed upon.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective, on the last 
day of each calendar month.
    Southeastern Power Administration (Southeastern) is including three 
rate alternatives. All of the rate alternatives have a revenue 
requirement of $59,600,000.

[[Page 42770]]

Rate Scenario 1--Interim Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a 
precaution to prevent failure of the dams, Southeastern is not able to 
provide peaking capacity to these customers. Southeastern implemented 
an Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    TVA Transmission Charge:
    The Customer will pay a ratable percent listed below of the credit 
the Administrator of Southeastern Power Administration (Administrator) 
provides to the TVA as consideration for delivering capacity and energy 
for the account of the Administrator to points of delivery of Other 
Customers or interconnection points of delivery with other electric 
systems for the benefit of Other Customers, as agreed by contract 
between the Administrator and TVA.

French Broad EMC, 1.713%
Haywood EMC, 0.501%
Town of Waynesville, 0.355%
    CP&L Transmission Charge:
    The Customer will way a ratable percent listed below of the charge 
for transmission service furnished by Carolina Power & Light Company, 
Western Division.

French Broad EMC, 66.667%
Haywood EMC, 19.512%
Town of Waynesville, 13.821%

    Energy To Be Furnished by the Government:
    The Government will sell to the customer and the customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to 
Carolina Power & Light Company (less applicable losses). The Customer's 
contract demand and accompanying energy allocation will be divided pro 
rata among its individual delivery points served from the Carolina 
Power & Light Company's, Western Division transmission system.

Rate Scenario 2--Cost Recovered From Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be scheduled. The revenue 
requirement under this alternative is $59,600,000, the same as the 
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will 
receive revenues from capacity that can be scheduled and the remainder 
from energy, at charges that will be determined at the time. Under 
Scenario 2, the cost of the TVA transmission credit will be passed to 
customers outside the TVA System. This rate alternative will be in 
effect when the Corps modifies operation of the Wolf Creek Project and 
the Center Hill Project to allow some of the capacity scheduled. When 
the lake level rises and capacity is available, the capacity will be 
allocated on an interim basis to the customers.

Rate Scenario 3--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on the operation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $4.832 per kilowatt/month of total contract demand.
    Energy Charge:
    None.
    CP&L Transmission Charge:
    $1.3334 per kilowatt/month of total contract demand (As of July 
2011 and provided for illustrative purposes.)
    The CP&L transmission rate is subject to annual adjustment on April 
1 of each year and will be computed subject to the formula in Appendix 
A attached to the Government--Carolina Power & Light Company contract.
    Energy to be Furnished by the Government:
    The Government will sell to the customer and the customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to 
Carolina Power & Light Company (less six percent [6%] losses). The 
Customer's contract demand and accompanying energy allocation will be 
divided pro rata among its individual delivery points served from the 
Carolina Power & Light Company's, Western Division transmission system.

Wholesale Power Rate Schedule CK-1-H

    Availability:
    This rate schedule shall be available to public bodies served 
through the facilities of Kentucky Utilities Company, (hereinafter 
called the Customers.)
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power 
shall be delivered at nominal voltages of 161,000 volts to the 
transmission systems of Kentucky Utilities Company.
    Points of Delivery
    The points of delivery will be at interconnecting points between 
the Tennessee Valley Authority (TVA) system and the Kentucky Utilities 
Company system. Other points of delivery may be as agreed upon.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective on the last day 
of each calendar month.
    Southeastern Power Administration (Southeastern) is including three 
rate alternatives. All of the rate alternatives have a revenue 
requirement of $59,600,000.

Rate Scenario 1--Interim Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a 
precaution to

[[Page 42771]]

prevent failure of the dams, Southeastern is not able to provide 
peaking capacity to these customers. Southeastern implemented an 
Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario 1 will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    Transmission Charge:
    The Customer will pay a ratable percent listed below of the credit 
the Administrator of Southeastern Power Administration (Administrator) 
provides to the TVA as consideration for delivering capacity and energy 
for the account of the Administrator to points of delivery of Other 
Customers or interconnection points of delivery with other electric 
systems for the benefit of Other Customers, as agreed by contract 
between the Administrator and TVA.

City of Barbourville, 0.404%
City of Bardstown, 0.412%
City of Bardwell, 0.099%
City of Benham, 0.046%
City of Corbin, 0.477%
City of Falmouth, 0.108%
City of Frankfort, 2.866%
City of Madisonville, 1.432%
City of Nicholasville, 0.469%
City of Owensboro, 4.587%
City of Paris, 0.250%
City of Providence, 0.226%

    Energy to be Furnished by the Government:
    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Rate Scenario 2--Cost Recovered from Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be scheduled. The revenue 
requirement under this alternative is $59,600,000, the same as the 
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will 
receive revenues from capacity that can be scheduled and the remainder 
from energy, at charges that will be determined at the time. Under 
Scenario 2, the cost of the TVA transmission credit will be passed to 
customers outside the TVA System. This rate alternative will be in 
effect when the Corps modifies operation of the Wolf Creek Project and 
the Center Hill Project to allow some of the capacity scheduled. When 
the lake level rises and capacity is available, the capacity will be 
allocated on an interim basis to the customers.

Rate Scenario 3--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on the operation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $4.245 per kilowatt/month of total contract demand.
    Energy Charge:
    None.
    Additional Energy Charge:
    10.358 mills per kilowatt-hour.
    Energy to be Furnished by the Government:
    The Government shall make available each contract year to the 
Customer from the Projects and the Customer will accept an allocation 
of 1500 kilowatt-hours of energy for each kilowatt of contract demand. 
A contract year is defined as the 12 months beginning July 1 and ending 
at midnight June 30 of the following calendar year. The energy made 
available for a contract year shall be scheduled monthly such that the 
maximum amount scheduled in any month shall not exceed 240 hours per 
kilowatt of the Customer's contract demand and the minimum amount 
scheduled in any month shall not be less than 60 hours per kilowatt of 
the Customer's contract demand. The Customer may request and the 
Government may approve energy scheduled for a month greater than 240 
hours per kilowatt of the Customer's contract demand; provided, that 
the combined schedule of all Southeastern Customers outside TVA and 
served by TVA does not exceed 240 hours per kilowatt of the total 
contract demands of these Customers.
    In the event that any portion of the capacity allocated to the 
Customers is not initially delivered to the Customers as of the 
beginning of a full contract year, the 1500 kilowatt hours shall be 
reduced \1/12\ for each month of that year prior to initial delivery of 
such capacity.
    For billing purposes, each kilowatt of capacity will include 1500 
kilowatt-hours energy per year. Customers will pay for additional 
energy at the additional energy rate.

Wholesale Power Rate Schedule CTV-1-H

    Availability:
    This rate schedule shall be available to the Tennessee Valley 
Authority (hereinafter called TVA).
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old 
Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects 
(all of such projects being hereafter called collectively the 
``Cumberland Projects'') and the Laurel Project sold under agreement 
between the Department of Energy and TVA.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a frequency of approximately 60 hertz at 
the outgoing terminals of the Cumberland Projects' switchyards.
    Billing Month:
    The billing month for capacity and energy sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective, 
on the last day of each calendar month.
    Contract Year:
    For purposes of this rate schedule, a contract year shall be as in 
Section 13.1 of the Southeastern Power Administration--Tennessee Valley 
Authority Contract.
    Power Factor:
    TVA shall take capacity and energy from the Department of Energy at 
such power factor as will best serve TVA's system from time to time; 
provided, that TVA shall not impose a power factor of less than .85 
lagging on the Department of Energy's facilities which requires 
operation contrary to good operating practice or results in overload or 
impairment of such facilities.
    Southeastern Power Administration (Southeastern) is including three 
rate alternatives. All of the rate alternatives have a revenue 
requirement of $59,600,000.

Rate Scenario 1--Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project

[[Page 42772]]

imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to 
prevent failure of the dams, Southeastern is not able to provide 
peaking capacity to these customers. Southeastern implemented an 
Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario 1 will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rates:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    Energy to be Made Available:
    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U.S. Army Corps of 
Engineers.

Rate Scenario 2--Cost Recovered From Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be scheduled. The revenue 
requirement under this alternative is $59,600,000, the same as the 
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will 
receive revenues from capacity that can be scheduled and the remainder 
from energy, at charges that will be determined at the time. Under 
Scenario 2, the cost of the TVA transmission credit will be passed to 
customers outside the TVA System. This rate alternative will be in 
effect when the Corps modifies operation of the Wolf Creek Project and 
the Center Hill Project to allow some of the capacity scheduled. When 
the lake level rises and capacity is available, the capacity will be 
allocated on an interim basis to the customers.

Rate Scenario 3--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on theoperation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $2.779 per kilowatt/month of total contract demand.
    Energy Charge:
    None.
    Additional Energy Charge:
    10.358 mills per kilowatt-hour.
    Energy to be Made Available:
    The Department of Energy shall determine the energy that is 
available from the projects for declaration in the billing month.
    To meet the energy requirements of the Department of Energy's 
customers outside the TVA area (hereinafter called Other Customers), 
768,000 megawatt-hours of net energy shall be available annually 
(including 36,900 megawatt-hours of annual net energy to supplement 
energy available at Laurel Project). The energy requirement of the 
Other Customers shall be available annually, divided monthly such that 
the maximum available in any month shall not exceed 240 hours per 
kilowatt of total Other Customers contract demand, and the minimum 
amount available in any month shall not be less than 60 hours per 
kilowatt of total Other Customers demand.
    In the event that any portion of the capacity allocated to Other 
Customers is not initially delivered to the Other Customers as of the 
beginning of a full contract year, (July through June), the 1500 hours, 
plus any such additional energy required as discussed above, shall be 
reduced \1/12\ for each month of that year prior to initial delivery of 
such capacity.
    The energy scheduled by TVA for use within the TVA System in any 
billing month shall be the total energy delivered to TVA less (1) an 
adjustment for fast or slow meters, if any, (2) an adjustment for 
Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month 
which is delivered to TVA under the agreement from the Cumberland 
Projects without charge to TVA, (3) the energy scheduled by the 
Department of Energy in said month for the Other Customers plus losses 
of two percent [2%], and (4) station service energy furnished by TVA.
    Each kilowatt of capacity will include 1500 kilowatt-hours of 
energy per year, which is defined as base energy. Energy received in 
excess of 1500 kilowatt-hours per kilowatt will be subject to an 
additional energy charge identified in the monthly rates section of 
this rate schedule.
    Service Interruption:
    When delivery of capacity to TVA is interrupted or reduced due to 
conditions on the Department of Energy's system that are beyond its 
control, the Department of Energy will continue to make available the 
portion of its declaration of energy that can be generated with the 
capacity available.
    For such interruption or reduction (exclusive of any restrictions 
provided in the agreement) due to conditions on the Department of 
Energy's system which have not been arranged for and agreed to in 
advance, the demand charge for scheduled capacity made available to TVA 
will be reduced as to the kilowatts of such scheduled capacity which 
have been so interrupted or reduced for each day in accordance with the 
following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.014

Wholesale Power Rate Schedule CTVI-1-A

    Availability:
    This rate schedule shall be available to customers (hereinafter 
called the Customer) who are or were formerly in the Tennessee Valley 
Authority (hereinafter called TVA) service area.
    Applicability:
    This rate schedule shall be applicable to electric capacity and 
energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old 
Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects 
(all of such projects being hereafter called collectively the 
``Cumberland Projects'') and the Laurel Project sold under agreement 
between the Department of Energy and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a frequency of approximately 60 hertz at 
the outgoing terminals of the Cumberland Projects' switchyards.

[[Page 42773]]

    Billing Month:
    The billing month for capacity and energy sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective, 
on the last day of each calendar month.
    Contract Year:
    For purposes of this rate schedule, a contract year shall be as in 
Section 13.1 of the Southeastern Power Administration--Tennessee Valley 
Authority Contract.
    Southeastern Power Administration (Southeastern) is including three 
rate alternatives. All of the rate alternatives have a revenue 
requirement of $59,600,000.

Rate Scenario 1--Interim Operating Plan

    The final marketing policy for the Cumberland System was published 
in the Federal Register August 5, 1993 (58 FR 41762). The marketing 
policy for the Cumberland System of Projects provides peaking capacity, 
along with 1500 hours of energy annually with each kilowatt of 
capacity, to customers outside the TVA transmission system. Due to 
restrictions on the operation of the Wolf Creek Project and the Center 
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a 
precaution to prevent failure of the dams, Southeastern is not able to 
provide peaking capacity to these customers. Southeastern implemented 
an Interim Operating Plan for the Cumberland System to provide these 
customers with energy that did not include capacity. The rates under 
Scenario 1 will remain in effect for the duration of the Interim 
Operating Plan.
    Monthly Rates:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    None.
    Energy Charge:
    17.69 mills per kilowatt-hour.
    Transmission Charge:
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the Federal Energy Regulatory Commission (FERC) or other overseeing 
entity involving the TVA's and other transmission provider's Open 
Access Transmission Tariff (OATT).
    Proceedings before FERC or other overseeing entity involving the 
OATT or the Distribution charge may result in the separation of charges 
currently included in the transmission rate. In this event, the 
Government may charge the Customer for any and all separate 
transmission, ancillary services, and distribution charges paid by the 
Government in behalf of the Customer. These charges could be recovered 
through a capacity charge or an energy charge, as determined by the 
Government.
    Energy To Be Made Available:
    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U.S. Army Corps of 
Engineers.

Rate Scenario 2--Cost Recovered From Capacity and Energy

    This rate alternative will be implemented if a portion of the 
Cumberland Capacity can be scheduled, though not all the capacity in 
the published marketing policy can be scheduled. The revenue 
requirement under this alternative is $59,600,000, the same as the 
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will 
receive revenues from capacity that can be scheduled and the remainder 
from energy, at charges that will be determined at the time. This rate 
alternative will be in effect when the Corps modifies operation of the 
Wolf Creek Project and the Center Hill Project to allow some of the 
capacity scheduled. When the lake level rises and capacity is 
available, the capacity will be allocated on an interim basis to the 
customers. The Customer will pay the same rate for capacity and energy 
as TVA. The Customer will pay their ratable share of any transmission 
charges paid in behalf of the Customer.

Rate Scenario 3--Original Cumberland Marketing Policy

    The third rate alternative will go into effect once the Corps lifts 
all restrictions on the operation of the Wolf Creek Dam and Center Hill 
Dam and Southeastern returns to operations that support the published 
marketing policy.
    Monthly Rate:
    The monthly rate for capacity and energy sold under this rate 
schedule shall be:
    Demand Charge:
    $2.779 per kilowatt/month of total contract demand.
    Energy Charge:
    None.
    Additional Energy Charge:
    10.358 mills per kilowatt-hour.
    Transmission Charge:
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
FERC or other overseeing entity involving the TVA's and other 
transmission provider's Open Access Transmission Tariff (OATT).
    Proceedings before FERC or other overseeing entity involving the 
OATT or the Distribution charge may result in the separation of charges 
currently included in the transmission rate. In this event, the 
Government may charge the Customer for any and all separate 
transmission, ancillary services, and distribution charges paid by the 
Government in behalf of the Customer. These charges could be recovered 
through a capacity charge or an energy charge, as determined by the 
Government.
    Energy To Be Made Available:
    The energy will be scheduled by TVA and the Customer will receive 
their ratable share, in accordance with the Government-Customer 
Contract. Energy shall be accounted for, in accordance with agreements 
with TVA.
    The Customer will receive a ratable share of their capacity, in 
accordance with the Government-Customer Contract.
    Service Interruption:
    When delivery of capacity to TVA is interrupted or reduced due to 
conditions on the Department of Energy's system that are beyond its 
control, the Department of Energy will continue to make available the 
portion of its declaration of energy that can be generated with the 
capacity available. The customer will receive a ratable share of this 
capacity.
    For such interruption or reduction (exclusive of any restrictions 
provided in the agreement) due to conditions on the Department of 
Energy's system which have not been arranged for and agreed to in 
advance, the demand charge for scheduled capacity made available to the 
Customer will be reduced as to the kilowatts of such scheduled capacity 
which have been so interrupted or reduced for each day in accordance 
with the following formula:

[[Page 42774]]

[GRAPHIC] [TIFF OMITTED] TN17JY13.015

Wholesale Rate Schedule Replacement--3

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia, North Carolina, Tennessee, Georgia, Alabama, Mississippi, 
Kentucky, and southern Illinois to whom power is provided pursuant to 
contracts between the Government and the customer from the Dale Hollow, 
Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy 
Priest, Cordell Hull, and Laurel Projects (all of such projects being 
hereinafter called collectively the ``Cumberland Projects'').
    Applicability:
    This rate schedule shall be applicable to the sale of wholesale 
energy purchased to meet contract minimum energy sold under appropriate 
contracts between the Government and the Customer.
    Character of Service:
    The energy supplied hereunder will be delivered at the delivery 
points provided for under appropriate contracts between the Government 
and the Customer.
    Monthly Charge:
    The rate for replacement energy will be a formulary capacity charge 
based on the monthly cost to the Government to purchase replacement 
energy necessary to support capacity in the Cumberland System divided 
by the capacity available from the Cumberland System, which is 950,000 
kilowatts in the published power marketing policy. The capacity rate 
will be adjusted for any capacity retained by the Customer's 
transmission facilitator.
    Conditions of Service:
    The customer shall at its own expense provide, install, and 
maintain on its side of each delivery point the equipment necessary to 
protect and control its own system.

[FR Doc. 2013-17129 Filed 7-16-13; 8:45 am]
BILLING CODE 6450-01-P