Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-170, 65205-65209 [2014-26042]

Download as PDF mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 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 http:// 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 http:// 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. VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 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 http://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: http:// www.nerc.com/Pages/Calendar.aspx. The discussions at the meetings, which are open to the public, may PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 65205 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: E:\FR\FM\03NON1.SGM 03NON1 mstockstill on DSK4VPTVN1PROD with NOTICES 65206 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 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: http:// 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 VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 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 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 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 E:\FR\FM\03NON1.SGM 03NON1 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES 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. VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 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 PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 65207 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 E:\FR\FM\03NON1.SGM 03NON1 mstockstill on DSK4VPTVN1PROD with NOTICES 65208 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 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. VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 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 PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 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 E:\FR\FM\03NON1.SGM 03NON1 mstockstill on DSK4VPTVN1PROD with NOTICES 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: http:// 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 03NON1

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]


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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.

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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: http://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.
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    \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: http://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