Integrated System Power Rates, 62616-62627 [2013-24606]
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62616
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
docket(s). For assistance with any FERC
Online service, please email
FERCOnlineSupport@ferc.gov. or call
(866) 208–3676 (toll free). For TTY, call
(202) 502–8659.
Dated: October 16, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013–24561 Filed 10–21–13; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. ER14–41–000]
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RE Rosamond One LLC; Supplemental
Notice That Initial Market-Based Rate
Filing Includes Request for Blanket
Section 204 Authorization
This is a supplemental notice in the
above-referenced proceeding of RE
Rosamond One LLC’s application for
market-based rate authority, with an
accompanying rate tariff, noting that
such application includes a request for
blanket authorization, under 18 CFR
Part 34, of future issuances of securities
and assumptions of liability.
Any person desiring to intervene or to
protest should file with the Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC 20426,
in accordance with Rules 211 and 214
of the Commission’s Rules of Practice
and Procedure (18 CFR 385.211 and
385.214). Anyone filing a motion to
intervene or protest must serve a copy
of that document on the Applicant.
Notice is hereby given that the
deadline for filing protests with regard
to the applicant’s request for blanket
authorization, under 18 CFR part 34, of
future issuances of securities and
assumptions of liability, is November 5,
2013.
The Commission encourages
electronic submission of protests and
interventions in lieu of paper, using the
FERC Online links at https://
www.ferc.gov. To facilitate electronic
service, persons with Internet access
who will eFile a document and/or be
listed as a contact for an intervenor
must create and validate an
eRegistration account using the
eRegistration link. Select the eFiling
link to log on and submit the
intervention or protests.
Persons unable to file electronically
should submit an original and 5 copies
of the intervention or protest to the
Federal Energy Regulatory Commission,
888 First Street NE., Washington, DC
20426.
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The filings in the above-referenced
proceeding are accessible in the
Commission’s eLibrary system by
clicking on the appropriate link in the
above list. They are also available for
review in the Commission’s Public
Reference Room in Washington, DC.
There is an eSubscription link on the
Web site that enables subscribers to
receive email notification when a
document is added to a subscribed
docket(s). For assistance with any FERC
Online service, please email
FERCOnlineSupport@ferc.gov. or call
(866) 208–3676 (toll free). For TTY, call
(202) 502–8659.
Dated: October 16, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
have changed its name to Salmon Creek
Hydroelectric Company, LLC for the
Salmon Creek Hydroelectric Project,
FERC No. 3730, originally issued
August 10, 1981.1 The project is located
on Salmon and Sardine Creeks in Sierra
County, California. The transfer of an
exemption does not require Commission
approval.
2. Salmon Creek Hydroelectric
Company, LLC is now the exemptee of
the Salmon Creek Hydroelectric Project,
FERC No. 3730. All correspondence
should be forwarded to: Mr. Mark
Henwood, Salmon Creek Hydroelectric
Company, LLC, 7311 Greenhaven Drive,
Suite 275, Sacramento, CA 95831.
[FR Doc. 2013–24565 Filed 10–21–13; 8:45 am]
Dated: October 15, 2013.
Kimberly D. Bose,
Secretary.
BILLING CODE 6717–01–P
[FR Doc. 2013–24528 Filed 10–21–13; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Southwestern Power Administration
[Docket No. EL14–2–000]
Integrated System Power Rates
Duke Energy Progress, Inc.; Notice of
Initiation of Proceeding and Refund
Effective Date
AGENCY:
On October 15, 2013, the Commission
issued an order that initiated a
proceeding in Docket No. EL14–2–000,
pursuant to section 206 of the Federal
Power Act (FPA), 16 U.S.C. 824e (2006),
to determine the justness and
reasonableness of the rate decrease
proposed by Duke Energy Progress, Inc.
Duke Energy Progress, Inc., 145 FERC ¶
61,037 (2013).
The refund effective date in Docket
No. EL14–2–000, established pursuant
to section 206(b) of the FPA, will be the
date of publication of this notice in the
Federal Register.
SUMMARY:
Dated: October 16, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013–24564 Filed 10–21–13; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Project No. 3730–005]
Southwestern Power
Administration, DOE.
ACTION: Notice of Rate Order.
The U.S. Department of
Energy Deputy Secretary has approved
and placed into effect on an interim
basis Rate Order No. SWPA–66, which
increases the power rates for the
Integrated System pursuant to the
Integrated System Rate Schedules to
supersede the existing rate schedules.
DATES: The effective period for the rate
schedules specified in Rate Order No.
SWPA–66 is October 1, 2013, through
September 30, 2017.
FOR FURTHER INFORMATION CONTACT: Mr.
James K. McDonald, Vice President for
Corporate Operations/Chief Operating
Office, 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–66, 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:
Salmon Creek Hydroelectric Company,
Salmon Creek Hydroelectric Company,
LLC; Notice of Transfer of Exemption
Rate Schedule P–13, Wholesale Rates for
Hydro Peaking Power;
1. By letter filed September 23, 2013,
Salmon Creek Hydroelectric Company
informed the Commission that they
1 16 FERC ¶ 62,209, Order Granting Exemption
from Licensing of a Small Hydroelectric Project of
5 Megawatts or Less and Dismissing Application for
Preliminary Permit.
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Rate Schedule NFTS–13, Wholesale Rates
for Non-Federal Transmission/
Interconnection Facilities Service;
Rate Schedule EE–13, Wholesale Rate for
Excess Energy.
The rate schedules supersede the
existing rate schedules shown below:
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Rate Schedule P–11, Wholesale Rates for
Hydro Peaking Power (superseded by P–13);
Rate Schedule NFTS–11, Wholesale Rates
for Non-Federal Transmission/
Interconnection Facilities Service
(superseded by NFTS–13);
Rate Schedule EE–11, Wholesale Rate for
Excess Energy (superseded by EE–13).
Southwestern Power Administration’s
(Southwestern) Administrator has
determined based on the 2013
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
2013 Integrated System Power
Repayment Studies (PRSs) indicate that
an increase in annual revenue of
$8,706,702, or 4.7 percent, beginning
October 1, 2013, will satisfy cost
recovery criteria for the Integrated
System projects. The proposed
Integrated System rate schedules would
increase annual revenues from
$184,059,100 to $192,765,802 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 Administrator’s
Discretionary Purchased Power Adder
Adjustment (Adjustment). This
Adjustment allows the Administrator to
adjust the Purchased Power Adder twice
annually, limited to ±$0.0059 per
kilowatthour per year as necessary, at
his/her discretion, 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
Transmission Rate Adjustments and
Extensions’’ in connection with the
proposed rate schedule. On July 1, 2013,
Southwestern published notice in the
Federal Register (78 FR 39280) of a 60day comment period, together with a
planned combined Public Information
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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 not held because
Southwestern did not receive any
requests to hold such a forum. Written
comments were accepted through
August 30, 2013. 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 hereby approve
Rate Order No. SWPA–66, which
increases the existing Integrated System
annual revenue requirement to
$192,765,802 per year for the period
October 1, 2013 through September 30,
2017. Rate Order No. SWPA–66 will be
submitted to FERC for confirmation and
approval on a final basis.
The Administrative Procedure Act
requires that publication of a
substantive rule be made not less than
30 days before its effective date, except,
in relevant part, if the agency has good
cause to waive the delay requirement (5
U.S.C. 553(d)). Southwestern finds good
cause to waive the 30-day delay in
effective date, placing the rates in effect
on an interim basis starting October 1,
2013, because the current rate is
insufficient to recover costs as required
by statute; no change to the standard
October 1 date of implementation is
being made; and no comments were
received and no revisions were made to
the proposed rates.
Dated: September 30, 2013.
Daniel Poneman,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
In the matter of: Southwestern Power
Administration Integrated System Rates
Rate Order No. SWPA–66
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
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Energy. By Delegation Order Nos. 00–037.00
and 00–001.00E, 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. Pursuant
to delegated authority, the Deputy Secretary
issued this interim rate order.
BACKGROUND
FERC confirmation and approval of the
following Integrated System (System) rate
schedules was provided in FERC Docket No.
EF12–1–000 issued on March 5, 2012, (138
FERC ¶ 62,199) effective for the period from
January 1, 2012, through September 30, 2015:
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.
Southwestern prepared a 2013 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 4.7 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 2013 Revised PRS indicates that
an increase in annual revenues of $8,706,702
(a 4.7 percent increase) is necessary
beginning October 1, 2013, to accomplish
repayment in the required number of years.
Accordingly, Southwestern has prepared
proposed rate schedules based on the
additional revenue requirement and the 2013
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. 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, July 1, 2013, (78 FR 39280).
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 preissuance consultation with customers. A
Public Information and Comment Forum was
proposed to be held on July 11, 2013, in
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Tulsa, Oklahoma. Such forum was not held
since no one requested that the 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 August 30, 2013.
No comments were received during the
public participation process on
Southwestern’s preliminary results.
Following the conclusion of the comment
period on August 30, 2013, the 2013 Power
Repayment and Rate Design Studies were
finalized. The Administrator made the
decision to submit the rate proposal for
interim approval and implementation.
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DISCUSSION
General
The existing rate schedules as developed in
the 2011 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 $8,706,702 or
4.7 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 2013 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 also see an
increase 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.
Consistent with FERC’s Order No. 888,
Southwestern will continue charging for the
six ancillary services under Rate Schedule P–
13 and Rate Schedule NFTS–13, and offering
non-Federal transmission service under Rate
Schedule NFTS–13. Southwestern’s rate
design has separated the 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
remaining ancillary services will be made
available to any transmission user within
Southwestern’s balancing area, including
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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–13.
With respect to the Purchased Power
Adder (PPA), 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 $0.0062 per
kWh of peaking energy to $0.0059 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 July 2013 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 (10 CFR 1021)
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 October 1, 2013, the following
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Southwestern Integrated System Rate
Schedules which shall remain in effect on an
interim basis through September 30, 2017, or
until the FERC confirms and approves the
rates on a final basis.
Dated: September 30, 2013.
Daniel Poneman,
Deputy Secretary.
United States Department of Energy
Southwestern Power Administration
Rate Schedule P–13 1
Wholesale Rates for Hydro Peaking Power
Effective:
During the period October 1, 2013, through
September 30, 2017, in accordance with
interim approval from Rate Order No.
SWPA–66 issued by the Deputy Secretary of
Energy on September 30, 2013 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
1 Supersedes
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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 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.
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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.
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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, riot, civil disturbance, labor
disturbance, sabotage, war, act of war,
terrorist acts 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
$4.50 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
2.1.3.4. 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
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62619
such secondary transmission service is
requested.
2.1.4. 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 Hydro
Peaking Power and Peaking Energy.
2.2. Peaking Energy and Supplemental
Peaking Energy Rates, Terms, and Conditions
2.2.1. Peaking Energy Charge
$0.0094 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
$0.0094 per kilowatthour of Supplemental
Peaking Energy delivered.
2.2.3. Purchased Power Adder
A purchased power adder of $0.0059 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
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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 $0.0059 (5.9
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 ±$0.0059 (5.9 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 $0.0059 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
($13,273,800 per year) of Southwestern’s
System Direct Purchases used as the
basis for the Purchased Power Adder of
$0.0059 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 $0.0059 per
kilowatthour Purchased Power Adder.
2.3. Transformation Service Rates, Terms,
and Conditions
2.3.1. Monthly Capacity Charge for
Transformation Service
$0.46 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.
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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 $0.07 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 $0.0146 per kilowatt of
Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for nonFederal generation inside Southwestern’s
Balancing Authority Area.
2.4.1.3. Supplemental Operating Reserve
Service
Monthly rate of $0.0146 per kilowatt of
Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for nonFederal 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
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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, 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 the
subsequent calendar year.
2.4.5. Regulation Purchased Adder
Southwestern has determined the amount
of energy used from storage to provide
Regulation and Frequency Response Service
in order to meet Southwestern’s Balancing
Authority Area requirements. The
replacement value of such energy used shall
be recovered through the Regulation
Purchased Adder. The Regulation Purchased
Adder during the time period of January 1
through December 31 of the current calendar
year is based on the average annual use of
energy from storage 1 for Regulation and
Frequency Response Service and
Southwestern’s estimated purchased power
price for the corresponding year from the
most currently approved Power Repayment
Studies.
The Regulation Purchased Adder will be
phased in over a period of four (4) years as
follows:
Regulation purchased adder for the
incremental replacement value of
energy used from storage
Year
2014
⁄
of the average annual use of
energy from storage × 2014 Purchased Power price.
1⁄2 of the average annual use of
energy from storage × 2015 Purchased Power price.
3⁄4 of the average annual use of
energy from storage × 2016 Purchased Power price.
The total average annual use of
energy from storage × the applicable Purchased Power price.
14
2015
2016
2017
and
thereafter
2.4.5.1. Applicability of Regulation
Purchased Adder
The replacement value of the estimated
annual use of energy from storage for
Regulation and Frequency Response Service
shall be recovered by Customers located
within Southwestern’s Balancing Authority
1 The average annual use of energy from storage
for Regulation and Frequency Response Service is
based on Southwestern studies.
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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
the replacement value of the estimated
annual use of energy from storage by
Southwestern for Regulation and Frequency
Response Service.
RPA = The Regulation Purchased Adder for
an individual Customer per month,
which is as follows:
[(L Customer ÷ L Total) × RP Total ] ÷ 12
with the factors defined as follows:
L Customer = 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 2 during the previous
calendar year, and
(3) The Customer’s highest rate of
Scheduled Imports 2 during the previous
calendar year.
L Total = The sum of all L Customer factors for
all Customers that were inside
Southwestern’s Balancing Authority
Area at the beginning of the previous
calendar year in MW.
RP Total = The ‘‘net’’ cost in dollars and cents
based on Southwestern’s estimated
purchased power price for the
corresponding year from the most
currently approved Power Repayment
Studies multiplied by the average annual
use of energy from storage, as provided
for in the table in Section 2.4.5, to
support Southwestern’s ability to
regulate within its Balancing Authority
Area. The ‘‘net’’ cost in dollars and cents
shall be adjusted by subtracting the
product of the quantity of such average
annual use of energy from storage in
MWh and Southwestern’s highest rate in
dollars per MWh for Supplemental
Peaking Energy during the previous
calendar year.
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
2 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.
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determined for the Customer on a noncoincident 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:
Months associated with charge
Rate per
kilowatt
March, April, May, October, November, December .................
January, February, June, July,
August, September .................
$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
$0.1034 per kilowatthour for each
kilowatthour of overrun.
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.
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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:
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 × (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 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
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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.
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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 × 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 hourby-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:
Months associated with charge
Rate per
kilowatthour
March, April, May, October, November, December ................
$0.15
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Months associated with charge
Rate per
kilowatthour
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–13 1
Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities
Service
Effective: During the period October 1,
2013, through September 30, 2017, in
accordance with interim approval from Rate
Order No. SWPA–66 issued by the Deputy
Secretary of Energy on September 30, 2013
and pursuant to final approval by the Federal
Energy Regulatory Commission.
Available: In the region of the System of
Southwestern.
Applicable: To Customers which have
executed Service Agreements with
Southwestern for the transmission of nonFederal 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
1 Supersedes
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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 nonfirm basis between specific points of receipt
and delivery pursuant to a Transmission
Service Transaction.
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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 Pointto-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 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.
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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-Time Information System
(hereinafter ‘‘OASIS’’) for reservation of
transmission capacity over a particular pointto-point delivery path for a particular period.
The Customer must submit hourly schedules
for actual service in addition to the Service
Request.
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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, riot, civil disturbance, labor
disturbance, sabotage, war, act of war,
terrorist acts 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
$1.48 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
$0.370 per kilowatt of transmission
capacity reserved in increments of one week
of service.
2.1.3. Daily Capacity Charge for Firm Pointto-Point Transmission Service
$0.0673 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
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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-toPoint 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
$15,533,800.
2.3.2. Monthly Revenue Requirement for
Network Integration Transmission Service
$1,294,483.
2.3.3. Net Capacity Available for Network
Integration Transmission Service
872,000 kilowatts.
2.3.4. Monthly Capacity Charge for Network
Integration Transmission Service
$1.48 per kilowatt of Network Load (charge
derived from $1,294,483 ÷ 872,000
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
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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 Ancillary Services shall also be assessed.
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2.4. Interconnection Facilities Service Rates,
Terms, and Conditions
2.4.1. Monthly Capacity Charge for
Interconnection Facilities Service
$1.48 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
$0.46 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.
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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 $0.07 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 $0.018 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 $0.0032 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 $0.00020 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 $0.0146 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 $0.00365 per kilowatt of
transmission capacity reserved in increments
of one week of service.
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Daily rate of $0.00066 per kilowatt of
transmission capacity reserved in increments
of one day of service.
Hourly rate of $0.00004 per kilowatt of
transmission energy delivered as non-firm
transmission service.
2.6.1.5. Supplemental Operating Reserve
Service
Monthly rate of $0.0146 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 $0.00365 per kilowatt of
transmission capacity reserved in increments
of one week of service.
Daily rate of $0.00066 per kilowatt of
transmission capacity reserved in increments
of one day of service.
Hourly rate of $0.00004 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 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
Southwestern’s approval, they are provided
by others.
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.
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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
Year
2014
2015
2016
2017
2.6.5. Regulation Purchased Adder
Southwestern has determined the amount
of energy used from storage to provide
Regulation and Frequency Response Service
in order to meet Southwestern’s Balancing
Authority Area requirements. The
replacement value of such energy used shall
be recovered through the Regulation
Purchased Adder. The Regulation Purchased
Adder during the time period of January 1
through December 31 of the current calendar
year is based on the average annual use of
energy from storage 1 for Regulation and
Frequency Response Service and
Southwestern’s estimated purchased power
price for the corresponding year from the
most currently approved Power Repayment
Studies.
The Regulation Purchased Adder will be
phased in over a period of four (4) years as
follows:
Regulation purchased adder for the incremental replacement value of energy used from storage
.............................................
.............................................
.............................................
and thereafter .....................
⁄ of the
⁄ of the
3⁄4 of the
The total
14
12
average
average
average
average
annual
annual
annual
annual
use
use
use
use
of
of
of
of
energy
energy
energy
energy
from
from
from
from
storage
storage
storage
storage
× 2014 Purchased Power price.
× 2015 Purchased Power price.
× 2016 Purchased Power price.
× the applicable Purchased Power price.
Unless otherwise specified by contract, the
Regulation Purchased Adder for an
individual Customer shall be based on the
following formula rate, calculated to include
the replacement value of the estimated
annual use of energy from storage by
Southwestern for Regulation and Frequency
Response Service.
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 Exports2 during the previous
calendar year, and
(3) The Customer’s highest rate of Scheduled
Imports2 during the previous calendar
year.
LTotal = The sum of all LCustomer factors for all
Customers that were inside
Southwestern’s Balancing Authority
Area at the beginning of the previous
calendar year in MW.
RPTotal = The ‘‘net’’ cost in dollars and cents
based on Southwestern’s estimated
purchased power price for the
corresponding year from the most
currently approved Power Repayment
Studies multiplied by the average annual
use of energy from storage, as provided
for in the table in Section 2.4.5, to
support Southwestern’s ability to
regulate within its Balancing Authority
Area. The ‘‘net’’ cost in dollars and cents
shall be adjusted by subtracting the
product of the quantity of such average
annual use of energy from storage in
MWh and Southwestern’s highest rate in
dollars per MWh for Supplemental
Peaking Energy during the previous
calendar year.
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 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.
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
1 The average annual use of energy from storage
for Regulation and Frequency Response Service is
based on Southwestern studies.
2 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.
2.6.5.1. Applicability of Regulation
Purchased Adder
The replacement value of the estimated
annual use of energy from storage for
Regulation and Frequency Response Service
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.
2.6.5.2. Procedure for Determining
Regulation Purchased Adder
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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 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 the subsequent calendar.
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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
Months associated with charge
March, April, May, October, November, December .................
January, February, June, July,
August, September .................
$0.15
0.30
3.1.2. Applicability of Capacity Overrun
Penalty
Customers who receive deliveries within
Southwestern’s Balancing Authority Area are
obligated to provide 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.
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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:
with the factors defined as follows:
PF = The power factor for any Demand
Period of the month.
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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 × (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 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
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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:
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 hourby-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:
Months associated with charge
Rate per
kilowatthour
March, April, May, October, November, December ................
January, February, June, July,
August, September ................
$0.15
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.
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Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
UNITED STATES DEPARTMENT OF
ENERGY
SOUTHWESTERN POWER
ADMINISTRATION
RATE SCHEDULE EE–13 1
WHOLESALE RATES FOR EXCESS
ENERGY
Effective: During the period October 1,
2013, through September 30, 2017, in
accordance with interim approval from Rate
Order No. SWPA–66 issued by the Deputy
Secretary of Energy on September 30, 2013
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
$0.0094 per kilowatthour of Excess Energy
delivered.
[FR Doc. 2013–24606 Filed 10–21–13; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Southwestern Power Administration
Sam Rayburn Dam Rate
Southwestern Power
Administration, DOE.
ACTION: Notice of Rate Order.
AGENCY:
The U.S. Department of
Energy Deputy Secretary has approved
and placed into effect on an interim
basis Rate Order No. SWPA–67, which
increases the power rate for the Sam
Rayburn Dam (Rayburn) project
pursuant to the Rayburn rate schedule
(SRD–13) to supersede the existing rate
schedule.
DATES: The effective period for the rate
schedule specified in Rate Order No.
SWPA–67 is October 1, 2013, through
September 30, 2017.
sroberts on DSK5SPTVN1PROD with FRONT MATTER
SUMMARY:
1 Supersedes
VerDate Mar<15>2010
Rate Schedule EE–11.
21:08 Oct 21, 2013
Jkt 232001
Mr.
James K. McDonald, Vice President for
Corporate Operations/Chief Operating
Officer, Southwestern Power
Administration, U.S. Department of
Energy, One West Third Street, Tulsa,
Oklahoma 74103, (918) 595–6690
(office), (918) 595–6656 (fax),
jim.mcdonald@swpa.gov.
SUPPLEMENTARY INFORMATION: Rate Order
No. SWPA–67, which has been
approved and placed into effect on an
interim basis, increases the power rate
for the Rayburn project pursuant to the
following rate schedule:
FOR FURTHER INFORMATION CONTACT:
Rate Schedule SRD–13, Wholesale Rates
for Hydro Power and Energy Sold to Sam
Rayburn Dam Electric Cooperative, Inc.
(Contract No. DE–PM75–92SW00215)
The rate schedule supersedes the
existing rate schedule shown below:
Rate Schedule SRD–08, Wholesale Rates
for Hydro Power and Energy Sold to Sam
Rayburn Dam Electric Cooperative, Inc.
(Contract No. DE–PM75–92SW00215)
(superseded by SRD–13)
Southwestern Power Administration’s
(Southwestern) Administrator has
determined, based on the 2013 Rayburn
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 2013
Rayburn Revised Power Repayment
Studies (PRSs) indicate that an increase
in annual revenue of $280,248, or 7.1
percent, beginning October 1, 2013, will
satisfy cost recovery criteria for the
Rayburn project. The proposed Rayburn
rate schedule would increase annual
revenues from $3,949,872 to $4,230,120,
to recover increased U.S. Army Corps of
Engineers’ (Corps) investments and
replacements in the hydroelectric
generating facility and increased
operations and maintenance costs.
The Administrator has followed Title
10, part 903 subpart A, of the Code of
Federal Regulations, ‘‘Procedures for
Public Participation in Power and
Transmission Rate Adjustments and
Extensions’’ in connection with the
proposed rate schedule. On August 6,
2013, Southwestern published notice in
the Federal Register, (78 FR 47695), of
the proposed rate increase for the
Rayburn project. Southwestern provided
a 30-day comment period as an
opportunity for customers and other
interested members of the public to
review and comment on the proposed
rate increase. Southwestern did not hold
the combined Public Information and
Comment Forum (Forum) because
Southwestern did not receive any
requests to hold the Forum. One
PO 00000
Frm 00045
Fmt 4703
Sfmt 4703
62627
comment was received from Gillis,
Borchardt and Barthel, LLP, on behalf of
the Sam Rayburn Dam Electric
Cooperative, Inc., which stated no
objection to the proposed rate
adjustment.
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 hereby approve
Rate Order No. SWPA–67 which
increases the existing Sam Rayburn Dam
rate to $4,230,120 per year for the
period October 1, 2013 through
September 30, 2017. Rate Order No.
SWPA–67 will be submitted to FERC for
confirmation and approval on a final
basis.
The Administrative Procedure Act
requires that publication of a
substantive rule be made not less than
30 days before its effective date, except,
in relevant part, if the agency has good
cause to waive the delay requirement (5
U.S.C. 553(d)). Southwestern finds good
cause to waive the 30-day delay in
effective date, placing the rates in effect
on an interim basis starting October 1,
2013, because the current rate is
insufficient to recover costs as required
by statute; no change to the standard
October 1 date of implementation is
being made; and no comments were
received and no revisions were made to
the proposed rates.
Dated: September 30, 2013.
Daniel Poneman,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
In the matter of: Southwestern Power
Administration Sam Rayburn Dam Project
Rate Rate Order No. SWPA–67
ORDER CONFIRMING, APPROVING AND
PLACING INCREASED POWER RATE
SCHEDULE 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
E:\FR\FM\22OCN1.SGM
22OCN1
Agencies
[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62616-62627]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24606]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy Deputy Secretary has approved
and placed into effect on an interim basis Rate Order No. SWPA-66,
which increases the power rates for the Integrated System pursuant to
the Integrated System Rate Schedules to supersede the existing rate
schedules.
DATES: The effective period for the rate schedules specified in Rate
Order No. SWPA-66 is October 1, 2013, through September 30, 2017.
FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Vice President
for Corporate Operations/Chief Operating Office, 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-66, 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-13, Wholesale Rates for Hydro Peaking Power;
[[Page 62617]]
Rate Schedule NFTS-13, Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities Service;
Rate Schedule EE-13, Wholesale Rate for Excess Energy.
The rate schedules supersede the existing rate schedules shown
below:
Rate Schedule P-11, Wholesale Rates for Hydro Peaking Power
(superseded by P-13);
Rate Schedule NFTS-11, Wholesale Rates for Non-Federal
Transmission/Interconnection Facilities Service (superseded by NFTS-
13);
Rate Schedule EE-11, Wholesale Rate for Excess Energy
(superseded by EE-13).
Southwestern Power Administration's (Southwestern) Administrator
has determined based on the 2013 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 2013
Integrated System Power Repayment Studies (PRSs) indicate that an
increase in annual revenue of $8,706,702, or 4.7 percent, beginning
October 1, 2013, will satisfy cost recovery criteria for the Integrated
System projects. The proposed Integrated System rate schedules would
increase annual revenues from $184,059,100 to $192,765,802 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 Administrator's Discretionary
Purchased Power Adder Adjustment (Adjustment). This Adjustment allows
the Administrator to adjust the Purchased Power Adder twice annually,
limited to $0.0059 per kilowatthour per year as necessary,
at his/her discretion, 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 Transmission Rate Adjustments and Extensions'' in connection
with the proposed rate schedule. On July 1, 2013, Southwestern
published notice in the Federal Register (78 FR 39280) of a 60-day
comment period, together with a planned 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 not held because
Southwestern did not receive any requests to hold such a forum. Written
comments were accepted through August 30, 2013. 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 hereby
approve Rate Order No. SWPA-66, which increases the existing Integrated
System annual revenue requirement to $192,765,802 per year for the
period October 1, 2013 through September 30, 2017. Rate Order No. SWPA-
66 will be submitted to FERC for confirmation and approval on a final
basis.
The Administrative Procedure Act requires that publication of a
substantive rule be made not less than 30 days before its effective
date, except, in relevant part, if the agency has good cause to waive
the delay requirement (5 U.S.C. 553(d)). Southwestern finds good cause
to waive the 30-day delay in effective date, placing the rates in
effect on an interim basis starting October 1, 2013, because the
current rate is insufficient to recover costs as required by statute;
no change to the standard October 1 date of implementation is being
made; and no comments were received and no revisions were made to the
proposed rates.
Dated: September 30, 2013.
Daniel Poneman,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY OF ENERGY
In the matter of: Southwestern Power Administration Integrated System
Rates
Rate Order No. SWPA-66
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 Nos. 00-037.00 and 00-001.00E, 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. Pursuant
to delegated authority, the Deputy Secretary issued this interim
rate order.
BACKGROUND
FERC confirmation and approval of the following Integrated
System (System) rate schedules was provided in FERC Docket No. EF12-
1-000 issued on March 5, 2012, (138 FERC ] 62,199) effective for the
period from January 1, 2012, through September 30, 2015:
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.
Southwestern prepared a 2013 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 4.7 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 2013 Revised PRS indicates that an increase in annual
revenues of $8,706,702 (a 4.7 percent increase) is necessary
beginning October 1, 2013, to accomplish repayment in the required
number of years. Accordingly, Southwestern has prepared proposed
rate schedules based on the additional revenue requirement and the
2013 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. 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, July 1, 2013, (78 FR 39280). 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
was proposed to be held on July 11, 2013, in
[[Page 62618]]
Tulsa, Oklahoma. Such forum was not held since no one requested that
the 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 August 30, 2013.
No comments were received during the public participation
process on Southwestern's preliminary results. Following the
conclusion of the comment period on August 30, 2013, the 2013 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 2011 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 $8,706,702 or 4.7 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 2013 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 also see an increase 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.
Consistent with FERC's Order No. 888, Southwestern will continue
charging for the six ancillary services under Rate Schedule P-13 and
Rate Schedule NFTS-13, and offering non-Federal transmission service
under Rate Schedule NFTS-13. Southwestern's rate design has
separated the 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
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-
13.
With respect to the Purchased Power Adder (PPA), 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 $0.0062 per kWh of
peaking energy to $0.0059 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 July 2013 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 (10 CFR 1021) 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 October 1, 2013, the
following Southwestern Integrated System Rate Schedules which shall
remain in effect on an interim basis through September 30, 2017, or
until the FERC confirms and approves the rates on a final basis.
Dated: September 30, 2013.
Daniel Poneman,
Deputy Secretary.
United States Department of Energy
Southwestern Power Administration
Rate Schedule P-13 \1\
---------------------------------------------------------------------------
\1\ Supersedes Rate Schedule P-11.
---------------------------------------------------------------------------
Wholesale Rates for Hydro Peaking Power
Effective:
During the period October 1, 2013, through September 30, 2017,
in accordance with interim approval from Rate Order No. SWPA-66
issued by the Deputy Secretary of Energy on September 30, 2013 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
[[Page 62619]]
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 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,
riot, civil disturbance, labor disturbance, sabotage, war, act of
war, terrorist acts 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
$4.50 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
2.1.3.4. 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.
2.1.4. 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 Hydro Peaking Power and Peaking Energy.
2.2. Peaking Energy and Supplemental Peaking Energy Rates, Terms,
and Conditions
2.2.1. Peaking Energy Charge
$0.0094 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
$0.0094 per kilowatthour of Supplemental Peaking Energy
delivered.
2.2.3. Purchased Power Adder
A purchased power adder of $0.0059 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
[[Page 62620]]
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
$0.0059 (5.9 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 $0.0059 (5.9
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 $0.0059 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 ($13,273,800 per year) of
Southwestern's System Direct Purchases used as the basis for the
Purchased Power Adder of $0.0059 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 $0.0059 per
kilowatthour Purchased Power Adder.
2.3. Transformation Service Rates, Terms, and Conditions
2.3.1. Monthly Capacity Charge for Transformation Service
$0.46 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 $0.07 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 $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.4.1.3. Supplemental Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 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, 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 the subsequent calendar year.
2.4.5. Regulation Purchased Adder
Southwestern has determined the amount of energy used from
storage to provide Regulation and Frequency Response Service in
order to meet Southwestern's Balancing Authority Area requirements.
The replacement value of such energy used shall be recovered through
the Regulation Purchased Adder. The Regulation Purchased Adder
during the time period of January 1 through December 31 of the
current calendar year is based on the average annual use of energy
from storage \1\ for Regulation and Frequency Response Service and
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies.
---------------------------------------------------------------------------
\1\ The average annual use of energy from storage for Regulation
and Frequency Response Service is based on Southwestern studies.
---------------------------------------------------------------------------
The Regulation Purchased Adder will be phased in over a period
of four (4) years as follows:
------------------------------------------------------------------------
Regulation purchased adder for the
Year incremental replacement value of energy
used from storage
------------------------------------------------------------------------
2014 \1/4\ of the average annual use of
energy from storage x 2014 Purchased
Power price.
2015 \1/2\ of the average annual use of
energy from storage x 2015 Purchased
Power price.
2016 \3/4\ of the average annual use of
energy from storage x 2016 Purchased
Power price.
2017 and thereafter The total average annual use of energy
from storage x the applicable Purchased
Power price.
------------------------------------------------------------------------
2.4.5.1. Applicability of Regulation Purchased Adder
The replacement value of the estimated annual use of energy from
storage for Regulation and Frequency Response Service shall be
recovered by Customers located within Southwestern's Balancing
Authority
[[Page 62621]]
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 the replacement value of the
estimated annual use of energy from storage by Southwestern for
Regulation and Frequency Response Service.
RPA = The Regulation Purchased Adder for an individual Customer per
month, which is as follows:
[(L Customer / L Total) x RP Total
] / 12
with the factors defined as follows:
L Customer = 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 \2\ during
the previous calendar year, and
(3) The Customer's highest rate of Scheduled Imports \2\ during
the previous calendar year.
\2\ 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.
---------------------------------------------------------------------------
L Total = The sum of all L Customer factors
for all Customers that were inside Southwestern's Balancing
Authority Area at the beginning of the previous calendar year in MW.
RP Total = The ``net'' cost in dollars and cents based on
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies
multiplied by the average annual use of energy from storage, as
provided for in the table in Section 2.4.5, to support
Southwestern's ability to regulate within its Balancing Authority
Area. The ``net'' cost in dollars and cents shall be adjusted by
subtracting the product of the quantity of such average annual use
of energy from storage in MWh and Southwestern's highest rate in
dollars per MWh for Supplemental Peaking Energy during the previous
calendar year.
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
$0.1034 per kilowatthour for each kilowatthour of overrun.
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:
[GRAPHIC] [TIFF OMITTED] TN22OC13.012
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
[[Page 62622]]
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-13 \1\
---------------------------------------------------------------------------
\1\ Supersedes Rate Schedule NFTS-11.
---------------------------------------------------------------------------
Wholesale Rates for Non-Federal Transmission/Interconnection Facilities
Service
Effective: During the period October 1, 2013, through September
30, 2017, in accordance with interim approval from Rate Order No.
SWPA-66 issued by the Deputy Secretary of Energy on September 30,
2013 and pursuant to final approval by the Federal Energy Regulatory
Commission.
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.
[[Page 62623]]
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-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,
riot, civil disturbance, labor disturbance, sabotage, war, act of
war, terrorist acts 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
$1.48 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
$0.370 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
$0.0673 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
$15,533,800.
2.3.2. Monthly Revenue Requirement for Network Integration Transmission
Service
$1,294,483.
2.3.3. Net Capacity Available for Network Integration Transmission
Service
872,000 kilowatts.
2.3.4. Monthly Capacity Charge for Network Integration Transmission
Service
$1.48 per kilowatt of Network Load (charge derived from
$1,294,483 / 872,000 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
[[Page 62624]]
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 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
$1.48 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
$0.46 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 $0.07 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 $0.018 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 $0.0032 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 $0.00020 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 $0.0146 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 $0.00365 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.00066 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00004 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.6.1.5. Supplemental Operating Reserve Service
Monthly rate of $0.0146 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 $0.00365 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.00066 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00004 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 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 Southwestern's approval, they are
provided by others.
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.
[[Page 62625]]
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 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 the subsequent calendar.
2.6.5. Regulation Purchased Adder
Southwestern has determined the amount of energy used from
storage to provide Regulation and Frequency Response Service in
order to meet Southwestern's Balancing Authority Area requirements.
The replacement value of such energy used shall be recovered through
the Regulation Purchased Adder. The Regulation Purchased Adder
during the time period of January 1 through December 31 of the
current calendar year is based on the average annual use of energy
from storage \1\ for Regulation and Frequency Response Service and
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies.
---------------------------------------------------------------------------
\1\ The average annual use of energy from storage for Regulation
and Frequency Response Service is based on Southwestern studies.
---------------------------------------------------------------------------
The Regulation Purchased Adder will be phased in over a period
of four (4) years as follows:
------------------------------------------------------------------------
Regulation purchased
adder for the incremental
Year replacement value of
energy used from storage
------------------------------------------------------------------------
2014......................................... \1/4\ of the average
annual use of energy
from storage x 2014
Purchased Power price.
2015......................................... \1/2\ of the average
annual use of energy
from storage x 2015
Purchased Power price.
2016......................................... \3/4\ of the average
annual use of energy
from storage x 2016
Purchased Power price.
2017 and thereafter.......................... The total average annual
use of energy from
storage x the applicable
Purchased Power price.
------------------------------------------------------------------------
2.6.5.1. Applicability of Regulation Purchased Adder
The replacement value of the estimated annual use of energy from
storage for Regulation and Frequency Response Service 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.
2.6.5.2. 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 the replacement value of the
estimated annual use of energy from storage by Southwestern for
Regulation and Frequency Response Service.
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\2\ during
the previous calendar year, and
(3) The Customer's highest rate of Scheduled Imports\2\ during the
previous calendar year.
---------------------------------------------------------------------------
\2\ 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.
LTotal = The sum of all LCustomer factors for
all Customers that were inside Southwestern's Balancing Authority
---------------------------------------------------------------------------
Area at the beginning of the previous calendar year in MW.
RPTotal = The ``net'' cost in dollars and cents based on
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies
multiplied by the average annual use of energy from storage, as
provided for in the table in Section 2.4.5, to support
Southwestern's ability to regulate within its Balancing Authority
Area. The ``net'' cost in dollars and cents shall be adjusted by
subtracting the product of the quantity of such average annual use
of energy from storage in MWh and Southwestern's highest rate in
dollars per MWh for Supplemental Peaking Energy during the previous
calendar year.
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 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.
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
[[Page 62626]]
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
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 who receive deliveries within Southwestern's Balancing
Authority Area are obligated to provide 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:
[GRAPHIC] [TIFF OMITTED] TN22OC13.013
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. 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 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.
[[Page 62627]]
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE EE-13 \1\
---------------------------------------------------------------------------
\1\ Supersedes Rate Schedule EE-11.
---------------------------------------------------------------------------
WHOLESALE RATES FOR EXCESS ENERGY
Effective: During the period October 1, 2013, through September
30, 2017, in accordance with interim approval from Rate Order No.
SWPA-66 issued by the Deputy Secretary of Energy on September 30,
2013 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
$0.0094 per kilowatthour of Excess Energy delivered.
[FR Doc. 2013-24606 Filed 10-21-13; 8:45 am]
BILLING CODE 6450-01-P