Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-170, 65205-65209 [2014-26042]
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or documents with the Commission
relating to the merits of an issue that
may affect the responsibilities of a
particular resource agency, they must
also serve a copy of the document on
that resource agency.
k. This application is not ready for
environmental analysis at this time.
l. The proposed Sardis Lake Project
would utilize the following existing
Corps’ Sardis Lake dam facilities: (1) A
15,300-foot-long, 97-foot-high earth fill
embankment dam; (2) a reservoir; and
(3) outlet works consisting of a concrete
intake tower, four gated inlets that
combine to a 560-foot-long and 16.0-foot
by 18.25-foot ovoid concrete outlet
tunnel, and a stilling basin.
The proposed Sardis Lake Project
would consist of the following new
facilities: (1) A 510-foot-long, 15.5-footdiameter steel liner installed within the
existing concrete outlet tunnel; (2) a 50foot-long, 20-foot-high steel-lined,
reinforced concrete gated bifurcation at
the end of the existing concrete outlet
tunnel to divide the flows between the
existing stilling basin and new
powerhouse; (3) a 250-foot-long, 15.5foot-diameter steel penstock from the
bifurcation structure to the forebay; (4)
a 102.6-foot-long, 78-foot-wide, 50-foothigh forebay; (5) a 120-foot-long, 85foot-wide, 105-foot-high concrete
powerhouse containing two vertical
Kaplan generating units with a total
installed capacity of 14.6 megawatts; (6)
a 200-foot-long, 100-foot-wide tailrace
channel; (7) a substation; (8) a 7,097foot-long transmission line consisting of
a 887-foot-long, 4.160-kilovolt (kV)
buried cable from the powerhouse to the
substation, and a 6,210-foot-long
overhead, 161-kV line from the
substation to an existing utility-owned
distribution line; and (9) appurtenant
facilities. The average annual generation
would be 52,000 megawatt-hours.
m. A copy of the application is
available for electronic review at the
Commission in the Public Reference
Room, or may be viewed on the
Commission’s Web site at https://
www.ferc.gov, using the ‘‘eLibrary’’ link.
Enter the docket number, excluding the
last three digits in the docket number
field, to access the document. For
assistance, contact FERC Online
Support. A copy is available for
inspection and reproduction at the
address in item h above.
You may register online at https://
www.ferc.gov/docs-filing/
esubscription.asp to be notified via
email of new filings and issuances
related to this or other pending projects.
For assistance, contact FERC Online
Support.
n. Scoping process.
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The Commission staff intends to
prepare an environmental assessment
(EA) for the project, in accordance with
the National Environmental Policy Act.
The EA will consider both site-specific
and cumulative environmental impacts
and reasonable alternatives to the
proposed action.
The Commission staff does not
propose to conduct any on-site scoping
meetings at this time. Instead, staff is
soliciting comments, recommendations,
and information on Scoping Document
(SD1) issued on October 27, 2014.
Copies of the SD1 outlining the
subject areas to be addressed in the EA
were distributed to the parties on the
Commission’s mailing list. Copies of the
SD1 may be viewed on the Web at
https://www.ferc.gov, using the
‘‘eLibrary’’ link. Enter the docket
number, excluding the last three digits
in the docket number field, to access the
document. For assistance, call 1–866–
208–3676, or for TTY, (202) 502–8659.
Dated: October 27, 2014.
Kimberly D. Bose,
Secretary.
[FR Doc. 2014–25989 Filed 10–31–14; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Notice of Commissioner and Staff
Attendance at North American Electric
Reliability Corporation Meetings
The Federal Energy Regulatory
Commission (Commission) hereby gives
notice that members of the Commission
and/or Commission staff may attend the
following meetings:
North American Electric Reliability
Corporation
Member Representatives Committee and
Board of Trustees Meetings
Board of Trustees Corporate Governance
and Human Resources Committee,
Finance and Audit Committee,
Compliance Committee, and
Standards Oversight and Technology
Committee Meetings
The Westin Buckhead Atlanta, 3391
Peachtree Road NE., Atlanta, GA
30326
November 12 (7:30 a.m.–5:00 p.m.) and
November 13 (8:30 a.m.–12:00 p.m.),
2014
Further information regarding these
meetings may be found at: https://
www.nerc.com/Pages/Calendar.aspx.
The discussions at the meetings,
which are open to the public, may
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address matters at issue in the following
Commission proceedings:
Docket No. RR14–5, North American
Electric Reliability Corporation
Docket No. RR14–6, North American
Electric Reliability Corporation
For further information, please
contact Jonathan First, 202–502–8529,
or jonathan.first@ferc.gov.
Dated: October 28, 2014.
Kimberly D. Bose,
Secretary.
[FR Doc. 2014–26066 Filed 10–31–14; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program—
Eastern Division-Rate Order No.
WAPA–170
Western Area Power
Administration, DOE.
ACTION: Notice of Proposed
Transmission and Ancillary Services
Formula Rates.
AGENCY:
The Western Area Power
Administration (Western), a power
marketing administration within the
Department of Energy (DOE), is
proposing new formula transmission
and ancillary services rates for the PickSloan Missouri Basin Program—Eastern
Division (P–SMBP—ED). The proposed
formula rates would become effective
October 1, 2015, and remain in effect
until September 30, 2020, or until
Western changes the formula rates
through another public rate process
pursuant to 10 CFR part 903, whichever
is sooner. Western’s Upper Great Plains
Region (Western-UGP) has joined the
Southwest Power Pool (SPP) Regional
Transmission Organization (RTO)
contingent upon Federal Energy
Regulatory Commission (FERC)
approval of Western-UGP’s negotiated
provisions in the SPP Membership
Agreement, Bylaws, and Tariff (SPP
Governing Documents). Transmission
and ancillary services will be provided
over Western-UGP facilities under the
SPP Open Access Transmission Tariff
(Tariff) by SPP as the transmission
service provider upon Western-UGP
transferring functional control to SPP.
Western-UGP needs to adopt new
formula rates for these transmission and
ancillary services so Western-UGP’s
costs can be recovered under the SPP
Tariff. These formula rates will provide
Western sufficient revenue to pay all
annual costs, including interest
expenses, and repay required
investments within the allowable
SUMMARY:
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periods. Western-UGP’s membership in
SPP and the functional control of its
facilities will be in accordance with the
SPP Governing Documents and other
contractual arrangements with SPP.
Publication of this Federal Register
notice begins the formal process for the
proposed rates.
DATES: The consultation and comment
period begins today and will end
February 2, 2015. Western will present
a detailed explanation of the proposed
rates at public information forums that
will be held on November 19, 2014,
from 9 a.m. to 12 p.m. CST in Omaha,
Nebraska, and November 20, 2014, from
9 a.m. to 12 p.m. CST in Fargo, North
Dakota. Western will accept written
comments any time during the 90-day
consultation and comment period.
Western will also accept oral and
written comments at public comment
forums that will be held on December
17, 2014, from 9 a.m. to 12 p.m. CST in
Omaha, Nebraska, and December 18,
2014, from 9 a.m. to 12 p.m. CST in
Fargo, North Dakota.
ADDRESSES: The public information
forums and public comment forums will
be held at the Holiday Inn Downtown
Omaha, located at 1420 Cuming Street,
Omaha, Nebraska, and at the Ramada
Plaza & Suites and Conference Center,
located at 1635 42nd Street South,
Fargo, North Dakota, on the dates cited
above. Written comments should be sent
to: Mr. Robert J. Harris, Regional
Manager, Upper Great Plains Region,
Western Area Power Administration,
2900 4th Avenue North, Billings, MT
59101–1266; or email: UGPTRates@
wapa.gov. Written comments may also
be faxed to: (406) 255–2900, attention:
Linda Cady-Hoffman, Rates Manager.
Western will post information about the
rate process on its Web site at: https://
www.wapa.gov/ugp/rates/default.htm.
Western will also post official
comments received via letter, fax, and
email to this Web site. Written
comments must be received by the end
of the consultation and comment period
to ensure they are considered in
Western’s decision process.
FOR FURTHER INFORMATION CONTACT: Mr.
Lloyd Linke, Operations Manager,
Upper Great Plains Region, Western
Area Power Administration, 1330 41st
Street, Watertown, SD 57201; telephone:
(605) 882–7500; email: Lloyd@wapa.gov;
or Ms. Linda Cady-Hoffman, Rates
Manager, Upper Great Plains Region,
Western Area Power Administration,
2900 4th Avenue North, Billings, MT
59101–1266; telephone: (406) 255–2920;
email: cady@wapa.gov.
SUPPLEMENTARY INFORMATION: On
November 1, 2013, Western published a
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Notice of Recommendation to Pursue
Regional Transmission Organization
Membership.1 Western-UGP has signed
a Membership Agreement enabling it to
join SPP, and the membership
application is currently before FERC for
approval. The Western-UGP
transmission facilities in the P–SMBP—
ED are currently integrated with
transmission facilities of Basin Electric
Power Cooperative and Heartland
Consumers Power District such that
transmission services are provided over
an Integrated System (IS). The IS
includes approximately 9,848 miles of
transmission lines, with transmission
and ancillary services provided under
Western’s Open Access Transmission
Tariff, and Western-UGP serving as the
IS administrator. The IS includes
transmission facilities located in both
the Eastern and Western
Interconnections separated by the Miles
City DC tie and the Fort Peck Power
Plant substation. Western-UGP also
currently operates two Balancing
Authority Areas within the IS; Western
Area Power Administration, Upper
Great Plains West (WAUW), and
Western Area Power Administration,
Upper Great Plains East (WAUE), which
are also separated by the Miles City DC
tie and the Fort Peck Power Plant
substation. Western-UGP’s existing rate
schedules consist of separate rates for
firm and non-firm transmission service
and ancillary services rates for the
transmission facilities in the P–SMBP—
ED.
Existing Rate Schedules UGP–NT1,
UGP–FPT1, UGP–NFPT1, UGP–AS1,
UGP–AS2, UGP–AS3, UGP–AS4, UGP–
AS5, UGP–AS6, UGP–AS7, and UGP–
TSP1 were approved under Rate Order
Nos. WAPA–144 and WAPA–148 2 for a
5-year period beginning on January 1,
2010, and ending December 31, 2014.
These rates are being extended through
December 31, 2016, under a separate
public process.3 Upon achieving final
FERC approval of membership within
SPP and transferring functional control
of Western-UGP’s P–SMBP—ED
facilities to SPP, Western-UGP will
merge its WAUE in the Eastern
Interconnection into SPP’s Balancing
Authority Area. P–SMBP—ED
transmission services will no longer be
available on the IS under Western’s
Open Access Transmission Tariff, and
the existing Rate Schedules UGP–NT1,
1 78
FR 65641, November 1, 2013.
Order Nos. WAPA–144 and WAPA–148,
approved on an interim basis, 74 FR 68820,
December 29, 2009; approved and confirmed by
FERC on a final basis, 132 FERC ¶61,257, FERC
Docket No. EF10–3–000, September 23, 2010.
3 Rate Order No. WAPA–168, 79 FR 46798,
August 11, 2014.
2 Rate
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UGP–FPT1, UGP–NFPT1, UGP–AS1,
UGP–AS2, UGP–AS3, UGP–AS4, UGP–
AS5, UGP–AS6, UGP–AS7, and UGP–
TSP1 will not be applicable. WesternUGP will, however, retain operation of
the WAUW in the Western
Interconnection as the Balancing
Authority (BA), and will not place the
portion of its transmission system
located in the Western Interconnection
into SPP’s Integrated Marketplace.
Western-UGP needs to adopt new
formula rates for use under the SPP
Tariff. The adoption of new formula
rates is necessary so that Western may
recover its revenue requirement of
eligible transmission facilities under
SPP’s Tariff. Western-UGP is proposing
a formula rate to calculate its Annual
Transmission Revenue Requirement
(ATRR) for its transmission facilities
located in both the Eastern and Western
Interconnections that are to be
transferred to the functional control of
SPP and used by SPP to provide
transmission service in the joint-owner
Upper Missouri Zone (UMZ or Zone 19)
under the SPP Tariff.
Western-UGP is also proposing a
formula rate schedule WAUGP–AS1 for
Scheduling, System Control, and
Dispatch Service (SSCD) for the SPP
UMZ, which will include the
transmission facilities in the WAUW.
Additionally, Western-UGP is proposing
formula rate schedules to calculate
charges for applicable ancillary services
associated with its WAUW in the
Western Interconnection. These formula
rate schedules include WAUW–AS3 for
Regulation and Frequency Response
Service, WAUW–AS4 for Energy
Imbalance Service, WAUW–AS5 for
Operating Reserve—Spinning Reserve
Service, WAUW–AS6 for Operating
Reserve—Supplemental Reserve
Service, and WAUW–AS7 for Generator
Imbalance Service. The proposed rate
schedules contain formula-based rates
that will be recalculated annually.
Western-UGP intends for the proposed
formula-based rates to go into effect
October 1, 2015, and remain in effect
until September 30, 2020. Annual
recalculated charges under the formulabased rates are proposed to go into effect
on January 1, 2016, and annually on
January 1 thereafter.
Proposed Formula Transmission Rates
Consistent with Western-UGP’s
current formula rates, Western-UGP
proposes to recover its transmission
system related expenses and
investments on a current (forwardlooking) basis by using projections to
estimate transmission costs for the
upcoming year, with a ‘‘true up’’ in a
subsequent year. For transmission
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service provided by SPP under SPP’s
Tariff, Western-UGP will provide its
ATRR to SPP for calculation of charges
for transmission service in the jointowner UMZ. SPP will utilize zonal and
regional load and other applicable
information, including additional
annual transmission revenue
requirements from other transmission
owners with transmission facilities in
the joint-owner UMZ, to calculate the
applicable charges for SPP transmission
service in the UMZ. The ATRR is
derived by annualizing Western-UGP’s
transmission investment and adding
transmission-related annual costs,
including operation and maintenance,
interest, administrative and general
costs, and depreciation. Western-UGP
cost data will be submitted to SPP in
standard revenue requirement
templates. The annual costs are reduced
by revenue credits received by WesternUGP under the SPP Tariff. A revenue
requirement template will be used to
calculate the ATRR utilizing the cost
estimates as data inputs.
Western-UGP will ‘‘true-up’’ the cost
estimates with Western-UGP’s actual
costs. Revenue collected in excess of
Western-UGP’s actual net revenue
requirement will be returned to
customers through a credit against rates
in a subsequent year. Actual revenues
that are less than the net revenue
requirement would likewise be
recovered in a subsequent year. The
true-up procedure will ensure that
Western-UGP will recover no more and
no less than the actual transmission
costs for the year.
Data used in the annual recalculation
of the formula rate effective on January
1 each year will be made available for
review and comment on or shortly after
September 1 each year. Western
proposes providing customers the
opportunity to discuss and comment on
the recalculated rates on or before
October 31, 2015, and October 31 of
subsequent years. This procedure will
ensure that interested parties are aware
of the data used to calculate the rates.
This will also provide interested parties
the opportunity to comment before the
costs are collected through the formula
rate.
Proposed Formula Rate for SSCD
Service
Western-UGP proposes a formulabased rate methodology to calculate its
annual revenue requirement for SSCD
on a current (forward-looking) basis by
using projections to estimate
transmission costs for the upcoming
year, with a ‘‘true up’’ in a subsequent
year, to be provided to SPP for inclusion
in Schedule 1 under the SPP Tariff.
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SSCD is required to schedule the
movement of power through, out of,
within, or into the SPP and/or WAUW
Balancing Authority Area(s). WesternUGP’s annual revenue requirement for
SSCD, reduced by any portion assessed
specifically to the loads in the WAUW,
will be utilized by SPP to calculate the
regional SPP Schedule 1 rate for SPP
through and out transactions, and also
to calculate the zonal SPP Schedule 1
rate for the UMZ. Western-UGP’s annual
revenue requirement for SSCD is
derived by annualizing Western-UGP’s
applicable transmission-related annual
costs associated with the provision of
SSCD service, including operation and
maintenance, interest, administrative
and general costs, and depreciation. A
portion of this revenue requirement may
be assessed to the loads in the WAUW.
This rate and rate design only recovers
Western-UGP’s revenue requirement for
SSCD service.
Western-UGP will ‘‘true-up’’ the cost
estimates with Western-UGP’s actual
costs. Revenue collected in excess of
Western-UGP’s actual net revenue
requirement will be returned to
customers through a credit against rates
in a subsequent year. Actual revenues
that are less than the net revenue
requirement would likewise be
recovered in a subsequent year. The
true-up procedure will ensure that
Western-UGP will recover no more and
no less than the actual costs for the year.
Proposed Formula Rate for Regulation
and Frequency Response Service
Western-UGP proposes a formulabased rate methodology for Regulation
and Frequency Response Service for the
WAUW as described below. Given the
SPP Integrated Marketplace will not be
extended into the Western
Interconnection, Western-UGP will need
to provide Regulation and Frequency
Response Service in the WAUW as the
BA. Regulation and Frequency Response
Service in the WAUW is provided
primarily by United States Army Corps
of Engineers (Corps) facilities. The
Corps’ generation fixed charge rate (in
percent) is applied to the net plant
investment of the Corps generation
producing an annual Corps generation
cost. This cost is divided by the capacity
at the plants to derive a dollar-permegawatt amount for Corps installed
capacity ($/MW-year). This dollar-permegawatt amount is then applied to the
capacity of Corps generation reserved
for Regulation and Frequency Response
Service in the WAUW producing the
annual Corps generation cost to provide
this service. Western-UGP’s annual
revenue requirement for Regulation and
Frequency Response Service is then
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determined by taking the annual Corps
generation cost to provide this service
and adding costs associated with the
purchase of power resources to provide
Regulation and Frequency Response
Service to support intermittent
renewable resources as described below.
Western-UGP’s annual revenue
requirement would be recovered under
the SPP Tariff.
Western supports the installation of
renewable sources of energy but
recognizes that certain operational
constraints exist in managing the
significant fluctuations that are a normal
part of their operation. Western has
marketed the maximum practical
amount of power from each of its
projects, leaving little or no flexibility
for provision of additional power
services. Consequently, provided that
Western-UGP is able to purchase
additional power resources delivered
into its WAUW to provide Regulation
and Frequency Response Service to
intermittent renewable generation
resources serving load within WesternUGP’s WAUW, costs for these regulation
resources will become part of WesternUGP’s Regulation and Frequency
Response Service charges. However,
Western-UGP will not regulate for the
difference between the output of an
intermittent generator located within
Western-UGP’s WAUW and a delivery
schedule from that generator serving
load located outside of Western-UGP’s
WAUW. Intermittent generators serving
load outside Western-UGP’s WAUW
will be required to pseudo-tie or
dynamically schedule their generation
to another Balancing Authority Area. An
intermittent resource, for the limited
purpose of these Rate Schedules, is an
electric generator that is not
dispatchable and cannot store its fuel
source, and therefore cannot respond to
changes in system demand or respond
to transmission security constraints.
Proposed Rate for Energy Imbalance
Service
Energy Imbalance Service is provided
when a difference occurs between the
scheduled and the actual delivery of
energy to a load located within WesternUGP’s WAUW over a single hour. Given
the SPP Integrated Marketplace will not
be extended into the Western
Interconnection, Western-UGP will need
to provide Energy Imbalance Service in
the WAUW as the BA. Western-UGP
will offer this service, to the extent that
it is feasible to do so from its own
resources or from resources available to
it, when transmission service is
provided by SPP and used to serve load
within its WAUW. The transmission
customer must either purchase this
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service or make alternative comparable
arrangements pursuant to the SPP Tariff
to satisfy its Energy Imbalance Service
obligation. A transmission customer
may be charged a penalty for either
hourly energy imbalances under this
Rate Schedule, WAUW–AS4, or hourly
generator imbalances under Rate
Schedule WAUW–AS7 for imbalances
occurring during the same hour, but not
both, unless the imbalances aggravate
rather than offset each other.
Western-UGP proposes that charges
for service within WAUW be based on
deviation bands as follows: (i)
Deviations within +/¥1.5 percent (with
a minimum of 2 MW) of the scheduled
transaction to be applied hourly to any
energy imbalance that occurs as a result
of transmission customer’s scheduled
transaction(s) will be netted on a
monthly basis and settled financially, at
the end of the month, at 100 percent of
the average incremental cost for the
month; (ii) deviations greater than +/
¥1.5 percent up to 7.5 percent (or
greater than 2 MW up to 10 MW) of the
scheduled transaction(s) to be applied
hourly to any energy imbalance that
occurs as a result of transmission
customer’s scheduled transaction(s) will
be settled financially, at the end of each
month, at 110 percent of incremental
cost when energy taken by the
transmission customer in a schedule
hour is greater than the energy
scheduled or 90 percent of incremental
cost when energy taken by a
transmission customer in a schedule
hour is less than the scheduled amount;
and (iii) deviations greater than +/¥7.5
percent (or 10 MW) of the scheduled
transaction to be applied hourly to any
energy imbalance that occurs as a result
of the transmission customer’s
scheduled transaction(s) will be settled
financially, at the end of each month, at
125 percent of the highest incremental
cost that occurs that day for energy
taken by the transmission customer in a
scheduled hour that is greater than the
energy scheduled, or 75 percent of the
lowest incremental cost that occurs that
day when energy taken by a
transmission customer is less than the
scheduled amount.
Western-UGP’s incremental cost will
be based upon a representative hourly
energy index or combination of indexes.
The index to be used will be posted on
Western-UGP’s homepage on SPP’s
Open Access Same-Time Information
System (OASIS) at least 30 days prior to
use for determining the Western-UGP
incremental cost and will not be
changed more often than once per year
unless Western-UGP determines that the
existing index is no longer a reliable
price index.
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Proposed Formula Rates for Operating
Reserves Service—Spinning and
Supplemental
Given the SPP Integrated Marketplace
will not be extended into the Western
Interconnection, Western-UGP will need
to provide Operating Reserve—Spinning
Reserve Service and Operating
Reserve—Supplemental Reserve Service
in the WAUW as the BA. Western-UGP
will offer this service under a formulabased rate methodology for Spinning
Reserve Service and Supplemental
Reserve Service (Reserve Services);
except that Western-UGP will substitute
the reserve requirement of the reserve
sharing group under which WesternUGP is currently a member for its
transmission system in the Western
Interconnection.
Western-UGP’s annual cost of
generation for Reserve Services is
determined by multiplying the Corps’
generation fixed charge rate (in percent)
by the net plant investment of the Corps
generation producing an annual Corps
generation cost. This cost is divided by
the capacity at the plants to derive a
dollar-per-megawatt amount for Corps
installed capacity ($/MW-year). This
dollar-per-megawatt amount is then
applied to the capacity of Corps
generation reserved for Reserve Services
in the WAUW producing the annual
Corps generation cost to provide this
service. Western-UGP’s annual revenue
requirement for Reserve Services is then
determined by taking the annual Corps
generation cost to provide this service
and adding costs associated with the
current reserve sharing group, if
applicable. Western-UGP’s annual
revenue requirement would be
recovered under the SPP Tariff. This
rate design recovers only Western-UGP’s
revenue requirement associated with
Reserve Services.
Western-UGP has no long-term
reserves available beyond its own
internal requirements. At a customer’s
request, and if it is capable of doing so,
Western-UGP will acquire needed
resources and pass the costs, plus an
amount for administration, on to the
requesting customer. The customer is
responsible to provide the transmission
to deliver these reserves. In the event
that Reserve Services are called upon for
emergency use, Western-UGP will
assess a charge for energy used at the
prevailing market energy rate in the
WAUW.
Proposed Rate for Generator Imbalance
Service
Generator Imbalance Service is
provided when a difference occurs
between the output of a generator
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located within Western-UGP’s WAUW
and a delivery schedule from that
generator to: (1) Another Balancing
Authority Area or (2) a load within
Western-UGP’s WAUW over a single
hour. Given the SPP Integrated
Marketplace will not be extended into
the Western Interconnection, WesternUGP will need to provide Generator
Imbalance Service in the WAUW as the
BA. Western-UGP will offer this service,
to the extent that it is feasible to do so,
from its own resources or from
resources available to it, when
transmission service is used to deliver
energy from a generator located within
its WAUW. The transmission customer
must either purchase this service, or
make alternative comparable
arrangements pursuant to the SPP Tariff,
to satisfy its Generator Imbalance
Service obligation. A transmission
customer may be charged a penalty for
either hourly generator imbalances
under this Schedule, WAUW–AS7, or
hourly energy imbalances under Rate
Schedule WAUW–AS4 for imbalances
occurring during the same hour, but not
both, unless the imbalances aggravate
rather than offset each other.
Western supports the installation of
renewable sources of energy but
recognizes that certain operational
constraints exist in managing the
significant fluctuations that are a normal
part of their operation. Western has
marketed the maximum practical
amount of power from each of its
projects, leaving little or no flexibility
for provision of additional power
services. Consequently, Western-UGP
will not regulate for the difference
between the output of an intermittent
generator located within Western-UGP’s
WAUW and a delivery schedule from
that generator serving load located
outside of Western-UGP’s WAUW.
Intermittent generators serving load
outside Western-UGP’s WAUW will be
required to pseudo-tie or dynamically
schedule their generation to another
Balancing Authority Area. An
intermittent resource, for the limited
purpose of these schedules, is an
electric generator that is not
dispatchable and cannot store its fuel
source, and therefore cannot respond to
changes in system demand or respond
to transmission security constraints.
Western-UGP proposes to base the
rate on deviation bands as follows: (i)
Deviations within +/¥1.5 percent (with
a minimum of 2 MW) of the scheduled
transaction to be applied hourly to any
generator imbalance that occurs as a
result of transmission customer’s
scheduled transaction(s) will be netted
on a monthly basis and settled
financially, at the end of the month, at
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Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices
100 percent of the average incremental
cost; (ii) deviations greater than +/¥1.5
percent up to 7.5 percent (or greater
than 2 MW up to 10 MW) of the
scheduled transaction to be applied
hourly to any generator imbalance that
occurs as a result of transmission
customer’s scheduled transaction(s) will
be settled financially, at the end of each
month. When energy delivered in a
schedule hour from the generation
resource is less than the energy
scheduled, the charge is 110 percent of
incremental cost. When energy
delivered from the generation resource
is greater than the scheduled amount,
the credit is 90 percent of the
incremental cost; and (iii) deviations
greater than +/¥7.5 percent (or 10 MW)
of the scheduled transaction to be
applied hourly to any generator
imbalance that occurs as a result of the
transmission customer’s scheduled
transaction(s) will be settled at 125
percent of Western-UGP’s highest
incremental cost for the day when
energy delivered in a schedule hour is
less than the energy scheduled or 75
percent of Western-UGP’s lowest daily
incremental cost when energy delivered
from the generation resource is greater
than the scheduled amount. As an
exception, an intermittent resource will
be exempt from this deviation band and
will pay the deviation band charges for
all deviations greater than the larger of
1.5 percent or 2 MW.
Deviations from scheduled
transactions in order to respond to
directives by the transmission service
provider, a BA or a reliability
coordinator shall not be subject to the
deviation bands identified above and,
instead, shall be settled financially, at
the end of the month, at 100 percent of
incremental cost. Such directives may
include instructions to correct
frequency decay, respond to a reserve
sharing event, or change output to
relieve congestion.
Western-UGP’s incremental cost will
be based on a representative hourly
energy index or combination of indexes.
The index to be used will be posted on
Western-UGP’s homepage on SPP’s
OASIS at least 30 days prior to use for
determining the Western-UGP
incremental cost and will not be
changed more often than once per year
unless Western-UGP determines that the
existing index is no longer a reliable
price index.
Legal Authority
Since the proposed rates constitute a
major rate adjustment as defined by 10
CFR part 903, Western will hold both
public information forums and public
comment forums. After review of public
VerDate Sep<11>2014
17:37 Oct 31, 2014
Jkt 235001
comments, Western will take further
action on the proposed formula rates
consistent with 10 CFR part 903.
Western is establishing transmission
and ancillary services formula rates for
the P–SMBP–ED under the 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)); section 5 of the Flood
Control Act of 1944 (16 U.S.C. 825s);
and other acts that specifically apply to
the project involved.
By Delegation Order No. 00–037.00A,
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 and
transmission rate adjustments (10 CFR
part 903) were published on September
18, 1985 (50 FR 37837).
Availability of Information
All brochures, 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 Upper Great Plains Region, Western
Area Power Administration, 2900 4th
Avenue North, Billings, Montana. Many
of these documents are also available on
Western’s Web site at: https://
www.wapa.gov/ugp/rates/default.htm.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National
Environmental Policy Act (NEPA) of
1969, 42 U.S.C. 4321–4347; 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
PO 00000
Frm 00035
Fmt 4703
Sfmt 4703
65209
clearance of this notice by the Office of
Management and Budget is required.
Dated: October 24, 2014.
Mark A. Gabriel,
Administrator.
[FR Doc. 2014–26042 Filed 10–31–14; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OW–2014–0593; FRL–9918–71–
OW]
Proposed Information Collection
Request; Comment Request; 2015
Drinking Water Infrastructure Needs
Survey and Assessment
(Reinstatement)
Environmental Protection
Agency.
ACTION: Notice.
AGENCY:
The U.S. Environmental
Protection Agency (EPA) is planning to
submit an information collection
request (ICR), ‘‘2015 Drinking Water
Infrastructure Needs Survey and
Assessment (Reinstatement)’’ (EPA ICR
No. 2234.04, OMB Control No. 2014–
0274), to the Office of Management and
Budget (OMB) for review and approval
in accordance with the Paperwork
Reduction Act (PRA) (44 U.S.C. 3501 et
seq.). Before doing so, the EPA is
soliciting comments on specific aspects
of the proposed information collection
as described in this request. This is a
reinstatement of a previously approved
information collection activity that was
discontinued on February 28, 2014. An
Agency may not conduct or sponsor and
a person is not required to respond to
a collection of information unless it
displays a currently valid OMB control
number.
DATES: Comments must be submitted on
or before January 2, 2015.
ADDRESSES: Submit your comments,
referencing Docket ID No. EPA–HQ–
OW–2014–0593, online using
www.regulations.gov (our preferred
method), by email to ow-docket@
epa.gov or by mail to: EPA Docket
Center, Environmental Protection
Agency, Mail Code 28221T, 1200
Pennsylvania Ave. NW., Washington,
DC 20460.
The EPA’s policy is that all comments
received will be included in the public
docket without change including any
personal information provided, unless
the comment includes profanity, threats,
information claimed to be Confidential
Business Information (CBI) or other
information whose disclosure is
restricted by statute.
SUMMARY:
E:\FR\FM\03NON1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 212 (Monday, November 3, 2014)]
[Notices]
[Pages 65205-65209]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26042]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program--Eastern Division-Rate Order
No. WAPA-170
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Transmission and Ancillary Services Formula
Rates.
-----------------------------------------------------------------------
SUMMARY: The Western Area Power Administration (Western), a power
marketing administration within the Department of Energy (DOE), is
proposing new formula transmission and ancillary services rates for the
Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--ED). The
proposed formula rates would become effective October 1, 2015, and
remain in effect until September 30, 2020, or until Western changes the
formula rates through another public rate process pursuant to 10 CFR
part 903, whichever is sooner. Western's Upper Great Plains Region
(Western-UGP) has joined the Southwest Power Pool (SPP) Regional
Transmission Organization (RTO) contingent upon Federal Energy
Regulatory Commission (FERC) approval of Western-UGP's negotiated
provisions in the SPP Membership Agreement, Bylaws, and Tariff (SPP
Governing Documents). Transmission and ancillary services will be
provided over Western-UGP facilities under the SPP Open Access
Transmission Tariff (Tariff) by SPP as the transmission service
provider upon Western-UGP transferring functional control to SPP.
Western-UGP needs to adopt new formula rates for these transmission and
ancillary services so Western-UGP's costs can be recovered under the
SPP Tariff. These formula rates will provide Western sufficient revenue
to pay all annual costs, including interest expenses, and repay
required investments within the allowable
[[Page 65206]]
periods. Western-UGP's membership in SPP and the functional control of
its facilities will be in accordance with the SPP Governing Documents
and other contractual arrangements with SPP. Publication of this
Federal Register notice begins the formal process for the proposed
rates.
DATES: The consultation and comment period begins today and will end
February 2, 2015. Western will present a detailed explanation of the
proposed rates at public information forums that will be held on
November 19, 2014, from 9 a.m. to 12 p.m. CST in Omaha, Nebraska, and
November 20, 2014, from 9 a.m. to 12 p.m. CST in Fargo, North Dakota.
Western will accept written comments any time during the 90-day
consultation and comment period. Western will also accept oral and
written comments at public comment forums that will be held on December
17, 2014, from 9 a.m. to 12 p.m. CST in Omaha, Nebraska, and December
18, 2014, from 9 a.m. to 12 p.m. CST in Fargo, North Dakota.
ADDRESSES: The public information forums and public comment forums will
be held at the Holiday Inn Downtown Omaha, located at 1420 Cuming
Street, Omaha, Nebraska, and at the Ramada Plaza & Suites and
Conference Center, located at 1635 42nd Street South, Fargo, North
Dakota, on the dates cited above. Written comments should be sent to:
Mr. Robert J. Harris, Regional Manager, Upper Great Plains Region,
Western Area Power Administration, 2900 4th Avenue North, Billings, MT
59101-1266; or email: UGPTRates@wapa.gov. Written comments may also be
faxed to: (406) 255-2900, attention: Linda Cady-Hoffman, Rates Manager.
Western will post information about the rate process on its Web site
at: https://www.wapa.gov/ugp/rates/default.htm. Western will also post
official comments received via letter, fax, and email to this Web site.
Written comments must be received by the end of the consultation and
comment period to ensure they are considered in Western's decision
process.
FOR FURTHER INFORMATION CONTACT: Mr. Lloyd Linke, Operations Manager,
Upper Great Plains Region, Western Area Power Administration, 1330 41st
Street, Watertown, SD 57201; telephone: (605) 882-7500; email:
Lloyd@wapa.gov; or Ms. Linda Cady-Hoffman, Rates Manager, Upper Great
Plains Region, Western Area Power Administration, 2900 4th Avenue
North, Billings, MT 59101-1266; telephone: (406) 255-2920; email:
cady@wapa.gov.
SUPPLEMENTARY INFORMATION: On November 1, 2013, Western published a
Notice of Recommendation to Pursue Regional Transmission Organization
Membership.\1\ Western-UGP has signed a Membership Agreement enabling
it to join SPP, and the membership application is currently before FERC
for approval. The Western-UGP transmission facilities in the P-SMBP--ED
are currently integrated with transmission facilities of Basin Electric
Power Cooperative and Heartland Consumers Power District such that
transmission services are provided over an Integrated System (IS). The
IS includes approximately 9,848 miles of transmission lines, with
transmission and ancillary services provided under Western's Open
Access Transmission Tariff, and Western-UGP serving as the IS
administrator. The IS includes transmission facilities located in both
the Eastern and Western Interconnections separated by the Miles City DC
tie and the Fort Peck Power Plant substation. Western-UGP also
currently operates two Balancing Authority Areas within the IS; Western
Area Power Administration, Upper Great Plains West (WAUW), and Western
Area Power Administration, Upper Great Plains East (WAUE), which are
also separated by the Miles City DC tie and the Fort Peck Power Plant
substation. Western-UGP's existing rate schedules consist of separate
rates for firm and non-firm transmission service and ancillary services
rates for the transmission facilities in the P-SMBP--ED.
---------------------------------------------------------------------------
\1\ 78 FR 65641, November 1, 2013.
---------------------------------------------------------------------------
Existing Rate Schedules UGP-NT1, UGP-FPT1, UGP-NFPT1, UGP-AS1, UGP-
AS2, UGP-AS3, UGP-AS4, UGP-AS5, UGP-AS6, UGP-AS7, and UGP-TSP1 were
approved under Rate Order Nos. WAPA-144 and WAPA-148 \2\ for a 5-year
period beginning on January 1, 2010, and ending December 31, 2014.
These rates are being extended through December 31, 2016, under a
separate public process.\3\ Upon achieving final FERC approval of
membership within SPP and transferring functional control of Western-
UGP's P-SMBP--ED facilities to SPP, Western-UGP will merge its WAUE in
the Eastern Interconnection into SPP's Balancing Authority Area. P-
SMBP--ED transmission services will no longer be available on the IS
under Western's Open Access Transmission Tariff, and the existing Rate
Schedules UGP-NT1, UGP-FPT1, UGP-NFPT1, UGP-AS1, UGP-AS2, UGP-AS3, UGP-
AS4, UGP-AS5, UGP-AS6, UGP-AS7, and UGP-TSP1 will not be applicable.
Western-UGP will, however, retain operation of the WAUW in the Western
Interconnection as the Balancing Authority (BA), and will not place the
portion of its transmission system located in the Western
Interconnection into SPP's Integrated Marketplace.
---------------------------------------------------------------------------
\2\ Rate Order Nos. WAPA-144 and WAPA-148, approved on an
interim basis, 74 FR 68820, December 29, 2009; approved and
confirmed by FERC on a final basis, 132 FERC ]61,257, FERC Docket
No. EF10-3-000, September 23, 2010.
\3\ Rate Order No. WAPA-168, 79 FR 46798, August 11, 2014.
---------------------------------------------------------------------------
Western-UGP needs to adopt new formula rates for use under the SPP
Tariff. The adoption of new formula rates is necessary so that Western
may recover its revenue requirement of eligible transmission facilities
under SPP's Tariff. Western-UGP is proposing a formula rate to
calculate its Annual Transmission Revenue Requirement (ATRR) for its
transmission facilities located in both the Eastern and Western
Interconnections that are to be transferred to the functional control
of SPP and used by SPP to provide transmission service in the joint-
owner Upper Missouri Zone (UMZ or Zone 19) under the SPP Tariff.
Western-UGP is also proposing a formula rate schedule WAUGP-AS1 for
Scheduling, System Control, and Dispatch Service (SSCD) for the SPP
UMZ, which will include the transmission facilities in the WAUW.
Additionally, Western-UGP is proposing formula rate schedules to
calculate charges for applicable ancillary services associated with its
WAUW in the Western Interconnection. These formula rate schedules
include WAUW-AS3 for Regulation and Frequency Response Service, WAUW-
AS4 for Energy Imbalance Service, WAUW-AS5 for Operating Reserve--
Spinning Reserve Service, WAUW-AS6 for Operating Reserve--Supplemental
Reserve Service, and WAUW-AS7 for Generator Imbalance Service. The
proposed rate schedules contain formula-based rates that will be
recalculated annually. Western-UGP intends for the proposed formula-
based rates to go into effect October 1, 2015, and remain in effect
until September 30, 2020. Annual recalculated charges under the
formula-based rates are proposed to go into effect on January 1, 2016,
and annually on January 1 thereafter.
Proposed Formula Transmission Rates
Consistent with Western-UGP's current formula rates, Western-UGP
proposes to recover its transmission system related expenses and
investments on a current (forward-looking) basis by using projections
to estimate transmission costs for the upcoming year, with a ``true
up'' in a subsequent year. For transmission
[[Page 65207]]
service provided by SPP under SPP's Tariff, Western-UGP will provide
its ATRR to SPP for calculation of charges for transmission service in
the joint-owner UMZ. SPP will utilize zonal and regional load and other
applicable information, including additional annual transmission
revenue requirements from other transmission owners with transmission
facilities in the joint-owner UMZ, to calculate the applicable charges
for SPP transmission service in the UMZ. The ATRR is derived by
annualizing Western-UGP's transmission investment and adding
transmission-related annual costs, including operation and maintenance,
interest, administrative and general costs, and depreciation. Western-
UGP cost data will be submitted to SPP in standard revenue requirement
templates. The annual costs are reduced by revenue credits received by
Western-UGP under the SPP Tariff. A revenue requirement template will
be used to calculate the ATRR utilizing the cost estimates as data
inputs.
Western-UGP will ``true-up'' the cost estimates with Western-UGP's
actual costs. Revenue collected in excess of Western-UGP's actual net
revenue requirement will be returned to customers through a credit
against rates in a subsequent year. Actual revenues that are less than
the net revenue requirement would likewise be recovered in a subsequent
year. The true-up procedure will ensure that Western-UGP will recover
no more and no less than the actual transmission costs for the year.
Data used in the annual recalculation of the formula rate effective
on January 1 each year will be made available for review and comment on
or shortly after September 1 each year. Western proposes providing
customers the opportunity to discuss and comment on the recalculated
rates on or before October 31, 2015, and October 31 of subsequent
years. This procedure will ensure that interested parties are aware of
the data used to calculate the rates. This will also provide interested
parties the opportunity to comment before the costs are collected
through the formula rate.
Proposed Formula Rate for SSCD Service
Western-UGP proposes a formula-based rate methodology to calculate
its annual revenue requirement for SSCD on a current (forward-looking)
basis by using projections to estimate transmission costs for the
upcoming year, with a ``true up'' in a subsequent year, to be provided
to SPP for inclusion in Schedule 1 under the SPP Tariff. SSCD is
required to schedule the movement of power through, out of, within, or
into the SPP and/or WAUW Balancing Authority Area(s). Western-UGP's
annual revenue requirement for SSCD, reduced by any portion assessed
specifically to the loads in the WAUW, will be utilized by SPP to
calculate the regional SPP Schedule 1 rate for SPP through and out
transactions, and also to calculate the zonal SPP Schedule 1 rate for
the UMZ. Western-UGP's annual revenue requirement for SSCD is derived
by annualizing Western-UGP's applicable transmission-related annual
costs associated with the provision of SSCD service, including
operation and maintenance, interest, administrative and general costs,
and depreciation. A portion of this revenue requirement may be assessed
to the loads in the WAUW. This rate and rate design only recovers
Western-UGP's revenue requirement for SSCD service.
Western-UGP will ``true-up'' the cost estimates with Western-UGP's
actual costs. Revenue collected in excess of Western-UGP's actual net
revenue requirement will be returned to customers through a credit
against rates in a subsequent year. Actual revenues that are less than
the net revenue requirement would likewise be recovered in a subsequent
year. The true-up procedure will ensure that Western-UGP will recover
no more and no less than the actual costs for the year.
Proposed Formula Rate for Regulation and Frequency Response Service
Western-UGP proposes a formula-based rate methodology for
Regulation and Frequency Response Service for the WAUW as described
below. Given the SPP Integrated Marketplace will not be extended into
the Western Interconnection, Western-UGP will need to provide
Regulation and Frequency Response Service in the WAUW as the BA.
Regulation and Frequency Response Service in the WAUW is provided
primarily by United States Army Corps of Engineers (Corps) facilities.
The Corps' generation fixed charge rate (in percent) is applied to the
net plant investment of the Corps generation producing an annual Corps
generation cost. This cost is divided by the capacity at the plants to
derive a dollar-per-megawatt amount for Corps installed capacity ($/MW-
year). This dollar-per-megawatt amount is then applied to the capacity
of Corps generation reserved for Regulation and Frequency Response
Service in the WAUW producing the annual Corps generation cost to
provide this service. Western-UGP's annual revenue requirement for
Regulation and Frequency Response Service is then determined by taking
the annual Corps generation cost to provide this service and adding
costs associated with the purchase of power resources to provide
Regulation and Frequency Response Service to support intermittent
renewable resources as described below. Western-UGP's annual revenue
requirement would be recovered under the SPP Tariff.
Western supports the installation of renewable sources of energy
but recognizes that certain operational constraints exist in managing
the significant fluctuations that are a normal part of their operation.
Western has marketed the maximum practical amount of power from each of
its projects, leaving little or no flexibility for provision of
additional power services. Consequently, provided that Western-UGP is
able to purchase additional power resources delivered into its WAUW to
provide Regulation and Frequency Response Service to intermittent
renewable generation resources serving load within Western-UGP's WAUW,
costs for these regulation resources will become part of Western-UGP's
Regulation and Frequency Response Service charges. However, Western-UGP
will not regulate for the difference between the output of an
intermittent generator located within Western-UGP's WAUW and a delivery
schedule from that generator serving load located outside of Western-
UGP's WAUW. Intermittent generators serving load outside Western-UGP's
WAUW will be required to pseudo-tie or dynamically schedule their
generation to another Balancing Authority Area. An intermittent
resource, for the limited purpose of these Rate Schedules, is an
electric generator that is not dispatchable and cannot store its fuel
source, and therefore cannot respond to changes in system demand or
respond to transmission security constraints.
Proposed Rate for Energy Imbalance Service
Energy Imbalance Service is provided when a difference occurs
between the scheduled and the actual delivery of energy to a load
located within Western-UGP's WAUW over a single hour. Given the SPP
Integrated Marketplace will not be extended into the Western
Interconnection, Western-UGP will need to provide Energy Imbalance
Service in the WAUW as the BA. Western-UGP will offer this service, to
the extent that it is feasible to do so from its own resources or from
resources available to it, when transmission service is provided by SPP
and used to serve load within its WAUW. The transmission customer must
either purchase this
[[Page 65208]]
service or make alternative comparable arrangements pursuant to the SPP
Tariff to satisfy its Energy Imbalance Service obligation. A
transmission customer may be charged a penalty for either hourly energy
imbalances under this Rate Schedule, WAUW-AS4, or hourly generator
imbalances under Rate Schedule WAUW-AS7 for imbalances occurring during
the same hour, but not both, unless the imbalances aggravate rather
than offset each other.
Western-UGP proposes that charges for service within WAUW be based
on deviation bands as follows: (i) Deviations within +/-1.5 percent
(with a minimum of 2 MW) of the scheduled transaction to be applied
hourly to any energy imbalance that occurs as a result of transmission
customer's scheduled transaction(s) will be netted on a monthly basis
and settled financially, at the end of the month, at 100 percent of the
average incremental cost for the month; (ii) deviations greater than +/
-1.5 percent up to 7.5 percent (or greater than 2 MW up to 10 MW) of
the scheduled transaction(s) to be applied hourly to any energy
imbalance that occurs as a result of transmission customer's scheduled
transaction(s) will be settled financially, at the end of each month,
at 110 percent of incremental cost when energy taken by the
transmission customer in a schedule hour is greater than the energy
scheduled or 90 percent of incremental cost when energy taken by a
transmission customer in a schedule hour is less than the scheduled
amount; and (iii) deviations greater than +/-7.5 percent (or 10 MW) of
the scheduled transaction to be applied hourly to any energy imbalance
that occurs as a result of the transmission customer's scheduled
transaction(s) will be settled financially, at the end of each month,
at 125 percent of the highest incremental cost that occurs that day for
energy taken by the transmission customer in a scheduled hour that is
greater than the energy scheduled, or 75 percent of the lowest
incremental cost that occurs that day when energy taken by a
transmission customer is less than the scheduled amount.
Western-UGP's incremental cost will be based upon a representative
hourly energy index or combination of indexes. The index to be used
will be posted on Western-UGP's homepage on SPP's Open Access Same-Time
Information System (OASIS) at least 30 days prior to use for
determining the Western-UGP incremental cost and will not be changed
more often than once per year unless Western-UGP determines that the
existing index is no longer a reliable price index.
Proposed Formula Rates for Operating Reserves Service--Spinning and
Supplemental
Given the SPP Integrated Marketplace will not be extended into the
Western Interconnection, Western-UGP will need to provide Operating
Reserve--Spinning Reserve Service and Operating Reserve--Supplemental
Reserve Service in the WAUW as the BA. Western-UGP will offer this
service under a formula-based rate methodology for Spinning Reserve
Service and Supplemental Reserve Service (Reserve Services); except
that Western-UGP will substitute the reserve requirement of the reserve
sharing group under which Western-UGP is currently a member for its
transmission system in the Western Interconnection.
Western-UGP's annual cost of generation for Reserve Services is
determined by multiplying the Corps' generation fixed charge rate (in
percent) by the net plant investment of the Corps generation producing
an annual Corps generation cost. This cost is divided by the capacity
at the plants to derive a dollar-per-megawatt amount for Corps
installed capacity ($/MW-year). This dollar-per-megawatt amount is then
applied to the capacity of Corps generation reserved for Reserve
Services in the WAUW producing the annual Corps generation cost to
provide this service. Western-UGP's annual revenue requirement for
Reserve Services is then determined by taking the annual Corps
generation cost to provide this service and adding costs associated
with the current reserve sharing group, if applicable. Western-UGP's
annual revenue requirement would be recovered under the SPP Tariff.
This rate design recovers only Western-UGP's revenue requirement
associated with Reserve Services.
Western-UGP has no long-term reserves available beyond its own
internal requirements. At a customer's request, and if it is capable of
doing so, Western-UGP will acquire needed resources and pass the costs,
plus an amount for administration, on to the requesting customer. The
customer is responsible to provide the transmission to deliver these
reserves. In the event that Reserve Services are called upon for
emergency use, Western-UGP will assess a charge for energy used at the
prevailing market energy rate in the WAUW.
Proposed Rate for Generator Imbalance Service
Generator Imbalance Service is provided when a difference occurs
between the output of a generator located within Western-UGP's WAUW and
a delivery schedule from that generator to: (1) Another Balancing
Authority Area or (2) a load within Western-UGP's WAUW over a single
hour. Given the SPP Integrated Marketplace will not be extended into
the Western Interconnection, Western-UGP will need to provide Generator
Imbalance Service in the WAUW as the BA. Western-UGP will offer this
service, to the extent that it is feasible to do so, from its own
resources or from resources available to it, when transmission service
is used to deliver energy from a generator located within its WAUW. The
transmission customer must either purchase this service, or make
alternative comparable arrangements pursuant to the SPP Tariff, to
satisfy its Generator Imbalance Service obligation. A transmission
customer may be charged a penalty for either hourly generator
imbalances under this Schedule, WAUW-AS7, or hourly energy imbalances
under Rate Schedule WAUW-AS4 for imbalances occurring during the same
hour, but not both, unless the imbalances aggravate rather than offset
each other.
Western supports the installation of renewable sources of energy
but recognizes that certain operational constraints exist in managing
the significant fluctuations that are a normal part of their operation.
Western has marketed the maximum practical amount of power from each of
its projects, leaving little or no flexibility for provision of
additional power services. Consequently, Western-UGP will not regulate
for the difference between the output of an intermittent generator
located within Western-UGP's WAUW and a delivery schedule from that
generator serving load located outside of Western-UGP's WAUW.
Intermittent generators serving load outside Western-UGP's WAUW will be
required to pseudo-tie or dynamically schedule their generation to
another Balancing Authority Area. An intermittent resource, for the
limited purpose of these schedules, is an electric generator that is
not dispatchable and cannot store its fuel source, and therefore cannot
respond to changes in system demand or respond to transmission security
constraints.
Western-UGP proposes to base the rate on deviation bands as
follows: (i) Deviations within +/-1.5 percent (with a minimum of 2 MW)
of the scheduled transaction to be applied hourly to any generator
imbalance that occurs as a result of transmission customer's scheduled
transaction(s) will be netted on a monthly basis and settled
financially, at the end of the month, at
[[Page 65209]]
100 percent of the average incremental cost; (ii) deviations greater
than +/-1.5 percent up to 7.5 percent (or greater than 2 MW up to 10
MW) of the scheduled transaction to be applied hourly to any generator
imbalance that occurs as a result of transmission customer's scheduled
transaction(s) will be settled financially, at the end of each month.
When energy delivered in a schedule hour from the generation resource
is less than the energy scheduled, the charge is 110 percent of
incremental cost. When energy delivered from the generation resource is
greater than the scheduled amount, the credit is 90 percent of the
incremental cost; and (iii) deviations greater than +/-7.5 percent (or
10 MW) of the scheduled transaction to be applied hourly to any
generator imbalance that occurs as a result of the transmission
customer's scheduled transaction(s) will be settled at 125 percent of
Western-UGP's highest incremental cost for the day when energy
delivered in a schedule hour is less than the energy scheduled or 75
percent of Western-UGP's lowest daily incremental cost when energy
delivered from the generation resource is greater than the scheduled
amount. As an exception, an intermittent resource will be exempt from
this deviation band and will pay the deviation band charges for all
deviations greater than the larger of 1.5 percent or 2 MW.
Deviations from scheduled transactions in order to respond to
directives by the transmission service provider, a BA or a reliability
coordinator shall not be subject to the deviation bands identified
above and, instead, shall be settled financially, at the end of the
month, at 100 percent of incremental cost. Such directives may include
instructions to correct frequency decay, respond to a reserve sharing
event, or change output to relieve congestion.
Western-UGP's incremental cost will be based on a representative
hourly energy index or combination of indexes. The index to be used
will be posted on Western-UGP's homepage on SPP's OASIS at least 30
days prior to use for determining the Western-UGP incremental cost and
will not be changed more often than once per year unless Western-UGP
determines that the existing index is no longer a reliable price index.
Legal Authority
Since the proposed rates constitute a major rate adjustment as
defined by 10 CFR part 903, Western will hold both public information
forums and public comment forums. After review of public comments,
Western will take further action on the proposed formula rates
consistent with 10 CFR part 903.
Western is establishing transmission and ancillary services formula
rates for the P-SMBP-ED under the 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)); section 5 of the
Flood Control Act of 1944 (16 U.S.C. 825s); and other acts that
specifically apply to the project involved.
By Delegation Order No. 00-037.00A, 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 and transmission rate adjustments (10 CFR part
903) were published on September 18, 1985 (50 FR 37837).
Availability of Information
All brochures, 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 Upper Great Plains
Region, Western Area Power Administration, 2900 4th Avenue North,
Billings, Montana. Many of these documents are also available on
Western's Web site at: https://www.wapa.gov/ugp/rates/default.htm.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969, 42 U.S.C. 4321-4347; 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: October 24, 2014.
Mark A. Gabriel,
Administrator.
[FR Doc. 2014-26042 Filed 10-31-14; 8:45 am]
BILLING CODE 6450-01-P
