Loveland Area Projects-Rate Order No. WAPA-167, 46430-46431 [2014-18811]

Download as PDF 46430 Federal Register / Vol. 79, No. 153 / Friday, August 8, 2014 / Notices Applicants: Puget Sound Energy, Inc. Description: Bellingham Cold StorageRoeder TX Agreements 705, 706 & 707 to be effective 5/1/2014. Filed Date: 8/1/14. Accession Number: 20140801–5012. Comments Due: 5 p.m. ET 8/22/14. Docket Numbers: ER14–2560–000. Applicants: Puget Sound Energy, Inc. Description: Tesoro TX Agreements 702, 703 & 704 to be effective 5/1/2014. Filed Date: 8/1/14. Accession Number: 20140801–5013. Comments Due: 5 p.m. ET 8/22/14. Docket Numbers: ER14–2561–000. Applicants: Niagara Mohawk Power Corporation, New York Independent System Operator, Inc. Description: NiMo cancellation: Cost Reimbursement Agreement No. 1953 w/ Erie Blvd. Hydro to be effective 10/1/ 2014. Filed Date: 8/1/14. Accession Number: 20140801–5025. Comments Due: 5 p.m. ET 8/22/14. Docket Numbers: ER14–2562–000. Applicants: Midcontinent Independent System Operator, Inc. Description: 2014–08–01 SGIP Order 792 Filing to be effective 10/1/2014. Filed Date: 8/1/14. Accession Number: 20140801–5053. Comments Due: 5 p.m. ET 8/22/14. The filings are accessible in the Commission’s eLibrary system by clicking on the links or querying the docket number. Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission’s Regulations (18 CFR 385.211 and 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding. eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: https://www.ferc.gov/ docs-filing/efiling/filing-req.pdf. For other information, call (866) 208–3676 (toll free). For TTY, call (202) 502–8659. September 8, 2014. Western will accept written comments any time during the consultation and comment period. Dated: August 1, 2014. Nathaniel J. Davis, Sr., Deputy Secretary. ADDRESSES: [FR Doc. 2014–18813 Filed 8–7–14; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Western Area Power Administration Loveland Area Projects—Rate Order No. WAPA–167 Western Area Power Administration, DOE. ACTION: Notice of Proposed Power Rates. AGENCY: The Western Area Power Administration (Western) Loveland Area Projects’ (LAP) Rate Schedule L– F9 expires December 31, 2014. LAP consists of the Fryingpan-Arkansas Project (Fry-Ark) and the Pick-Sloan Missouri Basin Program (P–SMBP)— Western Division, which were integrated for marketing and ratemaking purposes in 1989. Western is proposing modifications to the charge components in Rate Schedule L–F9 in order to true up the base and drought adder charges, which require a minor rate adjustment process. The revenue requirement and the total rate charges in the firm electric service rate schedule are not changing from Rate Schedule L– F9 and will continue to provide sufficient revenue to pay all annual costs, including interest expense, and repay investments within the allowable periods. If approved, the proposed Rate Schedule L–F10 will become effective on January 1, 2015, and will remain in effect through December 31, 2019. Publication of this Federal Register notice begins the formal process for the proposed rate schedule. DATES: The consultation and comment period will begin today and will end SUMMARY: Written comments and requests to be informed of Federal Energy Regulatory Commission (FERC) actions concerning the rates submitted by Western to FERC for approval should be sent to: Mr. Bradley S. Warren, Regional Manager, Rocky Mountain Region, Western Area Power Administration, 5555 East Crossroads Boulevard, Loveland, CO 80538–8986 or email lapfirmadj@wapa.gov. Information about the rate process is posted on Western’s Web site at https://www.wapa.gov/rm/ratesRM/ 2015/default.htm. Western will post official comments received via letter and email to its Web site after the close of the comment period. Western must receive written comments by the end of the consultation and comment period to ensure they are considered in Western’s decision process. Ms. Sheila D. Cook, Rates Manager, Rocky Mountain Region, Western Area Power Administration, 5555 East Crossroads Boulevard, Loveland, CO 80538–8986, telephone (970) 461–7211, email lapfirmadj@wapa.gov or scook@ wapa.gov. FOR FURTHER INFORMATION CONTACT: On December 16, 2009, the Deputy Secretary of Energy approved, on an interim basis, Rate Schedule L–F9 under Rate Order No. WAPA–146 for the period beginning January 1, 2010, and ending December 31, 2014 (74 FR 67191–67197 (Dec. 18, 2009)).1 The existing charges in the current rate schedule for LAP firm electric service continue to provide sufficient revenue to meet the LAP repayment obligations. The total annual revenue requirement for LAP remains $84.5 million for firm electric service and the overall capacity and energy charges are not changing, as indicated in the following Table 1: SUPPLEMENTARY INFORMATION: TABLE 1—COMPARISON OF EXISTING AND PROPOSED RATES Existing rate (January 1, 2010) L–F9 mstockstill on DSK4VPTVN1PROD with NOTICES Firm electric service LAP Revenue Requirement (million) ........................................................... LAP Composite Rate (mills/kWh) ................................................................ Firm Energy Rate (mills/kWh) ..................................................................... Firm Capacity Rate ($/kWmonth) ................................................................ 1 FERC confirmed and approved Rate Order WAPA–146 on a final basis on June 18, 2010, in VerDate Mar<15>2010 16:51 Aug 07, 2014 Jkt 232001 $84.5 41.42 20.71 $5.43 Docket No. EF10–1–000. See United States Department of Energy, Western Area Power PO 00000 Frm 00036 Fmt 4703 Proposed rate (January 1, 2015) L–F10 Sfmt 4703 $84.5 41.42 20.71 $5.43 Percent change (%) 0 0 0 0 Administration (Loveland Area Projects), 131 FERC ¶ 62,247. E:\FR\FM\08AUN1.SGM 08AUN1 46431 Federal Register / Vol. 79, No. 153 / Friday, August 8, 2014 / Notices through December 31, 2019. The proposed true up updates the base component to represent present costs and lowers the drought adder component to represent present drought costs. Over the past 5-year rate period, the P–SMBP costs included in the LAP drought adder have decreased as the actual deficits taken were less than projected when the current charges were placed into effect. Additionally, there has been P–SMBP drought costs repaid ahead of schedule, which decreased the drought deficit interest expense. The portion of the LAP drought adder Under the current rate methodology, rates for LAP firm electric service are designed to recover an annual revenue requirement that includes investment repayment, interest, purchase power, operation and maintenance, and other expenses within the allowable period. The annual revenue requirement continues to be allocated equally between capacity and energy. Western is proposing to true up the base and drought adder components of the rate schedule and to place a new rate schedule into effect for the 5-year period beginning January 1, 2015, component coming from Fry-Ark ($200,000) is now going to $0, as FryArk did not actually incur any deficits and Fry-Ark is not projecting any future non-timing purchases at this time. All historical drought-related costs for FryArk have been repaid. In addition, base costs for both P–SMBP and Fry-Ark increased during that same period due to a new 5-year cost evaluation period, new investments and replacements, and inflationary costs. A comparison of the current and proposed components is listed in Table 2. TABLE 2—SUMMARY OF LAP RATE COMPONENTS Existing charges under rate schedule L–F9 as of January 1, 2010 Base Component Firm Capacity Rate (/kWmonth) .............. Firm Energy Rate (mills/kWh) .................. $3.29 12.54 mstockstill on DSK4VPTVN1PROD with NOTICES Over the last 5 years, Western has conducted its annual process of reviewing the sufficiency of the drought adder. With the rate schedule set to expire December 31, 2014, and the requirement of a public process to place a new rate schedule into effect, Western proposes to true up the base and drought adder components in the new rate schedule to current values. Updating the components does not change the overall charges, it only identifies what portion of the charge is driven by base and drought adder components. Legal Authority The proposed modifications to the rate schedule for firm electric service, resulting in a true up of the base and drought adder components, as described above, constitute a minor rate adjustment, as defined by 10 CFR part 903.2(f). Western determined it is not necessary to hold a public information or public comment forum for this minor rate adjustment and, instead, held an informal public meeting via webinar, pursuant to 10 CFR part 903.17. Western will review all timely public comments and make amendments or adjustments to the proposal as appropriate. A proposed rate schedule will be forwarded to the Deputy Secretary of Energy for approval on an interim basis. Western is establishing firm electric service rates for LAP under the Department of Energy (DOE) Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and VerDate Mar<15>2010 16:51 Aug 07, 2014 Jkt 232001 Drought adder component Proposed charges under rate schedule L–F10 as of January 1, 2015 Total charge $2.14 8.17 Base component $5.43 20.71 Drought adder component $3.92 14.95 Total charge $1.51 5.76 $5.43 20.71 supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s); and other acts that specifically apply to the projects involved. By Delegation Order No. 00–037.00A, effective October 25, 2013, the Secretary of Energy delegated: (1) The authority to develop power and transmission rates to Western’s Administrator; (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy; and (3) the authority to confirm, approve, and place into effect on a final basis, to remand or to disapprove such rates to FERC. Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985. parties about the adjustment. The webinar was recorded and posted to the above referenced Western Web site. Availability of Information All studies, comments, letters, memorandums, or other documents that Western initiates or uses to develop the proposed rates are available for inspection and copying at the Rocky Mountain Regional Office located at 5555 East Crossroads Boulevard, Loveland, Colorado. Many of these documents and supporting information are also available on Western’s Web site under the ‘‘2015 Firm Rate Adjustment’’ section located at https://www.wapa. gov/rm/ratesRM/2015/default.htm. Western held an informal public meeting on May 2, 2014, via a webinar to inform customers, Native American tribes, stakeholders, and other interested Determination Under Executive Order 12866 PO 00000 Frm 00037 Fmt 4703 Sfmt 9990 Ratemaking Procedure Requirements Environmental Compliance In compliance with the National Environmental Policy Act (NEPA) of 1969, 42 U.S.C. 4321, et seq.; the Council on Environmental Quality Regulations for implementing NEPA (40 CFR parts 1500–1508); and DOE NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western is in the process of determining whether an environmental assessment or an environmental impact statement should be prepared or if this action can be categorically excluded from those requirements. Western has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no clearance of this notice by the Office of Management and Budget is required. Dated: July 23, 2014. Mark A. Gabriel, Administrator. [FR Doc. 2014–18811 Filed 8–7–14; 8:45 am] BILLING CODE 6450–01–P E:\FR\FM\08AUN1.SGM 08AUN1

Agencies

[Federal Register Volume 79, Number 153 (Friday, August 8, 2014)]
[Notices]
[Pages 46430-46431]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18811]

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

DEPARTMENT OF ENERGY

Western Area Power Administration

Loveland Area Projects--Rate Order No. WAPA-167

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Power Rates.

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

SUMMARY: The Western Area Power Administration (Western) Loveland Area
Projects' (LAP) Rate Schedule L-F9 expires December 31, 2014. LAP
consists of the Fryingpan-Arkansas Project (Fry-Ark) and the Pick-Sloan
Missouri Basin Program (P-SMBP)--Western Division, which were
integrated for marketing and rate-making purposes in 1989. Western is
proposing modifications to the charge components in Rate Schedule L-F9
in order to true up the base and drought adder charges, which require a
minor rate adjustment process. The revenue requirement and the total
rate charges in the firm electric service rate schedule are not
changing from Rate Schedule L-F9 and will continue to provide
sufficient revenue to pay all annual costs, including interest expense,
and repay investments within the allowable periods. If approved, the
proposed Rate Schedule L-F10 will become effective on January 1, 2015,
and will remain in effect through December 31, 2019. Publication of
this Federal Register notice begins the formal process for the proposed
rate schedule.

DATES: The consultation and comment period will begin today and will
end September 8, 2014. Western will accept written comments any time
during the consultation and comment period.

ADDRESSES: Written comments and requests to be informed of Federal
Energy Regulatory Commission (FERC) actions concerning the rates
submitted by Western to FERC for approval should be sent to: Mr.
Bradley S. Warren, Regional Manager, Rocky Mountain Region, Western
Area Power Administration, 5555 East Crossroads Boulevard, Loveland, CO
80538-8986 or email lapfirmadj@wapa.gov. Information about the rate
process is posted on Western's Web site at https://www.wapa.gov/rm/ratesRM/2015/default.htm. Western will post official comments received
via letter and email to its Web site after the close of the comment
period. Western must receive written comments by the end of the
consultation and comment period to ensure they are considered in
Western's decision process.

FOR FURTHER INFORMATION CONTACT: Ms. Sheila D. Cook, Rates Manager,
Rocky Mountain Region, Western Area Power Administration, 5555 East
Crossroads Boulevard, Loveland, CO 80538-8986, telephone (970) 461-
7211, email lapfirmadj@wapa.gov or scook@wapa.gov.

SUPPLEMENTARY INFORMATION: On December 16, 2009, the Deputy Secretary
of Energy approved, on an interim basis, Rate Schedule L-F9 under Rate
Order No. WAPA-146 for the period beginning January 1, 2010, and ending
December 31, 2014 (74 FR 67191-67197 (Dec. 18, 2009)).\1\ The existing
charges in the current rate schedule for LAP firm electric service
continue to provide sufficient revenue to meet the LAP repayment
obligations. The total annual revenue requirement for LAP remains $84.5
million for firm electric service and the overall capacity and energy
charges are not changing, as indicated in the following Table 1:
---------------------------------------------------------------------------

\1\ FERC confirmed and approved Rate Order WAPA-146 on a final
basis on June 18, 2010, in Docket No. EF10-1-000. See United States
Department of Energy, Western Area Power Administration (Loveland
Area Projects), 131 FERC ] 62,247.

Table 1--Comparison of Existing and Proposed Rates
----------------------------------------------------------------------------------------------------------------
Existing rate (January Proposed rate (January Percent change
Firm electric service 1, 2010) L-F9 1, 2015) L-F10 (%)
----------------------------------------------------------------------------------------------------------------
LAP Revenue Requirement (million)............. $84.5 $84.5 0
LAP Composite Rate (mills/kWh)................ 41.42 41.42 0
Firm Energy Rate (mills/kWh).................. 20.71 20.71 0
Firm Capacity Rate ($/kWmonth)................ $5.43 $5.43 0
----------------------------------------------------------------------------------------------------------------

[[Page 46431]]

Under the current rate methodology, rates for LAP firm electric
service are designed to recover an annual revenue requirement that
includes investment repayment, interest, purchase power, operation and
maintenance, and other expenses within the allowable period. The annual
revenue requirement continues to be allocated equally between capacity
and energy.
Western is proposing to true up the base and drought adder
components of the rate schedule and to place a new rate schedule into
effect for the 5-year period beginning January 1, 2015, through
December 31, 2019. The proposed true up updates the base component to
represent present costs and lowers the drought adder component to
represent present drought costs. Over the past 5-year rate period, the
P-SMBP costs included in the LAP drought adder have decreased as the
actual deficits taken were less than projected when the current charges
were placed into effect. Additionally, there has been P-SMBP drought
costs repaid ahead of schedule, which decreased the drought deficit
interest expense. The portion of the LAP drought adder component coming
from Fry-Ark ($200,000) is now going to $0, as Fry-Ark did not actually
incur any deficits and Fry-Ark is not projecting any future non-timing
purchases at this time. All historical drought-related costs for Fry-
Ark have been repaid. In addition, base costs for both P-SMBP and Fry-
Ark increased during that same period due to a new 5-year cost
evaluation period, new investments and replacements, and inflationary
costs. A comparison of the current and proposed components is listed in
Table 2.

Table 2--Summary of LAP Rate Components
--------------------------------------------------------------------------------------------------------------------------------------------------------
Existing charges under rate schedule L-F9 as Proposed charges under rate schedule L-F10 as
--------------------------------------------------------- of January 1, 2010 of January 1, 2015
-----------------------------------------------------------------------------------------------
Drought adder Drought adder
Base Component component Total charge Base component component Total charge
--------------------------------------------------------------------------------------------------------------------------------------------------------
Firm Capacity Rate (/kWmonth)........................... $3.29 $2.14 $5.43 $3.92 $1.51 $5.43
Firm Energy Rate (mills/kWh)............................ 12.54 8.17 20.71 14.95 5.76 20.71
--------------------------------------------------------------------------------------------------------------------------------------------------------

Over the last 5 years, Western has conducted its annual process of
reviewing the sufficiency of the drought adder. With the rate schedule
set to expire December 31, 2014, and the requirement of a public
process to place a new rate schedule into effect, Western proposes to
true up the base and drought adder components in the new rate schedule
to current values. Updating the components does not change the overall
charges, it only identifies what portion of the charge is driven by
base and drought adder components.

Legal Authority

The proposed modifications to the rate schedule for firm electric
service, resulting in a true up of the base and drought adder
components, as described above, constitute a minor rate adjustment, as
defined by 10 CFR part 903.2(f). Western determined it is not necessary
to hold a public information or public comment forum for this minor
rate adjustment and, instead, held an informal public meeting via
webinar, pursuant to 10 CFR part 903.17. Western will review all timely
public comments and make amendments or adjustments to the proposal as
appropriate. A proposed rate schedule will be forwarded to the Deputy
Secretary of Energy for approval on an interim basis.
Western is establishing firm electric service rates for LAP under
the Department of Energy (DOE) Organization Act (42 U.S.C. 7152); the
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and
supplemented by subsequent laws, particularly section 9(c) of the
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and section 5 of
the Flood Control Act of 1944 (16 U.S.C. 825s); and other acts that
specifically apply to the projects involved.
By Delegation Order No. 00-037.00A, effective October 25, 2013, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator; (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand or to
disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985.

Availability of Information

All studies, comments, letters, memorandums, or other documents
that Western initiates or uses to develop the proposed rates are
available for inspection and copying at the Rocky Mountain Regional
Office located at 5555 East Crossroads Boulevard, Loveland, Colorado.
Many of these documents and supporting information are also available
on Western's Web site under the ``2015 Firm Rate Adjustment'' section
located at https://www.wapa.gov/rm/ratesRM/2015/default.htm.
Western held an informal public meeting on May 2, 2014, via a
webinar to inform customers, Native American tribes, stakeholders, and
other interested parties about the adjustment. The webinar was recorded
and posted to the above referenced Western Web site.

Ratemaking Procedure Requirements

Environmental Compliance

In compliance with the National Environmental Policy Act (NEPA) of
1969, 42 U.S.C. 4321, et seq.; the Council on Environmental Quality
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western
is in the process of determining whether an environmental assessment or
an environmental impact statement should be prepared or if this action
can be categorically excluded from those requirements.

Determination Under Executive Order 12866

Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.

Dated: July 23, 2014.
Mark A. Gabriel,
Administrator.
[FR Doc. 2014-18811 Filed 8-7-14; 8:45 am]
BILLING CODE 6450-01-P

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