Colorado River Storage Project-Rate Order No. WAPA-169, 73067-73070 [2014-28866]

Download as PDF Federal Register / Vol. 79, No. 236 / Tuesday, December 9, 2014 / Notices to seek court review of the Commission’s final order. The Commission strongly encourages electronic filings of comments, protests, and interventions via the internet in lieu of paper. See 18 CFR 385.2001(a) (1) (iii) and the instructions on the Commission’s Web site (www.ferc.gov) under the ‘‘e-Filing’’ link. Persons unable to file electronically should submit original and 5 copies of the protest or intervention to the Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426. Dated: December 1, 2014. Kimberly D. Bose, Secretary. [FR Doc. 2014–28761 Filed 12–8–14; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Project No. 14241–000] rljohnson on DSK3VPTVN1PROD with NOTICES Alaska Energy Authority; Notice of Revised Restricted Service List for a Programmatic Agreements for Managing Properties Included In or Eligible for Inclusion in the National Register of Historic Places On February 25, 2014, the Federal Energy Regulatory Commission (Commission) issued notice of a proposed restricted service list for the preparation of a programmatic agreement for managing properties included in, or eligible for inclusion in, the National Register of Historic Places at the Susitna-Watana Hydroelectric Project No. 14241. Rule 2010(d)(1) of the Commission’s Rules of Practice and Procedure, 18 CFR 2010(d)(1) (2005), provides for the establishment of such a list for a particular phase or issue in a proceeding to eliminate unnecessary expense or improve administrative efficiency. Under Rule 2010(d)(4), persons on the official service list are to be given notice of any proposal to establish a restricted service list and an opportunity to show why they should also be included on the restricted service list. On March, 11, 2014, Sharon Corsaro, Concerned Citizen for the Historic District of Talkeetna, Alaska (Talkeetna Historic District), and Robert Gerlach, President of Talkeetna Airmen’s Association filed requests to include: Sharon Corsaro, Talkeetna Historic District; Constance Twigg, property owner in the Talkeetna Historic District; and Robert Gerlach, Talkeetna Airmen’s VerDate Sep<11>2014 14:48 Dec 08, 2014 Jkt 235001 Association on the proposed restricted service list. On March 12, 2014, Van Ness Feldman, LLP (Van Ness) on behalf of the Alaska Energy Authority (AEA) filed a request to include Wayne Dyok, Susitna-Watana Project Manager of AEA and Charles Sensiba of Van Ness, and council for AEA, on the proposed restricted service list. On May 12, 2014, AEA filed a letter opposing the additions of such persons as Ms. Corsaro, Ms. Twigg, and Mr. Gerlach to the restricted service list because AEA maintains that their particular interests are more broad and non-regulatory in nature and they should not have access to sensitive cultural information that is protected by law from public disclosure.1 In this regard, we agree with AEA to restrict such sensitive information from individuals who are not associated with the involved agencies and Alaska Native entities. Under Rule 2010(d)(2), any restricted service list will contain the names of each person on the official service list, or the person’s representative, who, in the judgment of the decisional authority establishing the list, is an active participant with respect to the phase or issue in the proceeding for which the list is established. As the proposed licensee for the project, AEA, and their legal representative at Van Ness, have an identifiable interest in issues relating to the management of historic properties at the Susitna-Watana Hydroelectric Project No. 14241. Therefore, AEA’s representatives will be added to the restrictive service list. In regards to the representatives associated with the Talkeetna Historic District and Talkeetna Airmen’s Association, these additional three individuals will also be added to the restricted service list as they too have identifiable interest in issues relating to the management of historic properties at the SusitnaWatana Hydroelectric Project No. 14241. These interests are: (1) The partial ownership of the Talkeetna Village Air Strip by the Talkeetna Airmen’s Association and the preservation and protection of this historic property; and (2) the preservation and protection of the Talkeetna Historic District. However, these three individuals should not receive any information deemed sensitive or confidential in nature that is associated with: (1) data or reports involving archeological finds; or (2) Alaska Native areas, items, or perspectives deemed to be of religious or cultural significance and considered sensitive to one or more the involved 1 See PO 00000 16 U.S.C. 470w–3(a); also see 18 CFR 5.2(c). Frm 00042 Fmt 4703 Sfmt 4703 73067 Alaska Native entities. Finally, the Bureau of Land Management also needs to have a representative added to the restricted service list because they manage lands within the proposed project’s boundary and are participants within the technical work group for cultural resources. Accordingly, the restricted service list issued on October 12, 2006, for the Susitna-Watana Hydroelectric Project No. 14241, is revised to add the following persons: Wayne Dyok or Representative, SusitnaWatana Project Manager, Alaska Energy Authority, 813 West Northern Lights Boulevard, Anchorage, AK 99503. John Jangela or Representative, Bureau of Land Management, Glennallen Field Office, P.O. Box 147, Mile Post 186.5 Glenn Hwy., Glennallen, AK 99588. Sharon Corsaro or Representative, Concern Citizen, Historic District of Talkeetna, P.O. Box 255, Hermosa Beach, CA 90254. Charles Sensiba or Representative, Van Ness Feldman, LLP, 1050 Thomas Jefferson St., NW, Seventh Floor, Washington, DC 20007. Constance Twigg or Representative, Property Owner, Historic Townsite of Talkeetna, P.O. Box 266, Talkeetna, AK 99676. Robert Gerlach or Representative, President of the Talkeetna Airman’s, Association, P.O. Box 23, Talkeetna, AK 99676. Dated: December 2, 2014. Kimberly D. Bose, Secretary. [FR Doc. 2014–28759 Filed 12–8–14; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Western Area Power Administration Colorado River Storage Project—Rate Order No. WAPA–169 Western Area Power Administration, DOE. ACTION: Notice of Proposed Salt Lake City Area Integrated Projects Firm Power Rate and Colorado River Storage Project Transmission and Ancillary Services Rates. AGENCY: Western Area Power Administration (Western) is proposing adjustments to the Salt Lake City Area Integrated Projects (SLCA/IP) Firm Power Rate and the Colorado River Storage Project (CRSP) Transmission and Ancillary Services Rates. The SLCA/IP consists of the CRSP, Collbran, SUMMARY: E:\FR\FM\09DEN1.SGM 09DEN1 73068 Federal Register / Vol. 79, No. 236 / Tuesday, December 9, 2014 / Notices and Rio Grande projects, which were integrated for marketing and ratemaking purposes on October 1, 1987, and two participating projects of the CRSP that have power facilities, the Dolores and Seedskadee projects. The current rates, under Rate Schedules SLIP–F9, SP– PTP7, SP–NW3, SP–NFT6, SP–SD3, SP– RS3, SP–EI3, SP–FR3, and SP–SSR3 will expire September 30, 2015. The proposed rates, under Rate Schedules SLIP–F10, SP–PTP8, SP–NW4, SP– NFT7, SP–SD4, SP–RS4, SP–EI4, SP– FR4, SP–SSR4, and SP–UU1 are scheduled to be placed into effect on an interim basis on October 1, 2015, and will remain in effect through September 30, 2020, or until superseded. These rates will provide sufficient revenue to pay all annual costs, including operation, maintenance, replacements (OM&R), interest expenses, and the required repayment of investment within the allowable period. Western will prepare a brochure that provides detailed information on the rates and will make it available to all interested parties. Publication of this Federal Register notice (FRN) begins the formal process for the proposed rates. DATES: The consultation and comment period closes on March 13, 2015. Western will present a detailed explanation of the proposed rates at a public information forum to be held on January 15, 2015, 11:30 a.m. MST, in Salt Lake City, Utah. Western will accept oral and written comments at a public comment forum to be held on February 5, 2015, 11:30 a.m. MST, in Salt Lake City, Utah. Western will accept written comments any time during the consultation and comment period. Written comments and requests to be informed of Federal Energy Regulatory Commission (FERC) actions concerning the rates submitted by Western to FERC for approval should ADDRESSES: be sent to: Ms. Lynn C. Jeka, CRSP Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City, UT 84111–1580, telephone (801) 524– 6372, email jeka@wapa.gov or CRSPMC–RATE–ADJ@WAPA.GOV. Western will post information regarding this rate process on its Web page located at: http://www.wapa.gov/crsp/ratescrsp/ WAPA-169.htm. Western will post official comments received by letter and email to its Web page after the close of the comment period. Western must receive written comments by the end of the consultation and comment period to ensure consideration in Western’s decision process. The location of the public information forum and the comment forum is the Holiday Inn & Suites Salt Lake City Airport West, 5001 Wiley Post Way, Salt Lake City, Utah. FOR FURTHER INFORMATION CONTACT: Mr. Rodney G. Bailey, Power Marketing Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City, UT 84111–1580, telephone (801) 524– 4007, email rbailey@wapa.gov. SUPPLEMENTARY INFORMATION: The proposed rates for SLCA/IP Firm Power and CRSP Transmission and Ancillary Services will collect annual revenue sufficient to recover annual OM&R expenses, interest expense, irrigation assistance, and capital requirements, ensuring repayment of the project within the cost recovery criteria set forth in DOE Order RA 6120.2. The Deputy Secretary of Energy approved Rate Schedules SLIP–F9 for SLCA/IP Firm Power and SP–PTP7, SP– NW3, SP–NFT6, SP–SD3, SP–RS3, SP– EI3, SP–FR3, and SP–SSR3 for CRSP Transmission and Ancillary Services on August 1, 2008 1 for a 5-year period ending on September 30, 2013. The Deputy Secretary of Energy approved Rate Order WAPA–161 2 on September 6, 2013, extending the rates through September 30, 2015. Firm Power Rate Under the current Rate Schedule SLIP–F9, the energy rate is 12.19 mills per kilowatthour (mills/kWh), and the capacity rate is $5.18 per kilowattmonth (kWmonth). The composite rate is 29.62 mills/kWh. The proposed rates under Rate Schedule SLIP–F10 are intended to become effective October 1, 2015. The revenue requirements for the proposed rates are based on the fiscal year (FY) 2016 work plans for Western and the Bureau of Reclamation (Reclamation). These work plans form the basis for the FY 2016 Congressional budget requests for the two agencies. If available, the FY 2017 work plans will be included in the final rate order submission. The FY 2013 historical financial data are the latest available for the proposed rate. The final rate-setting study will include the FY 2014 historical financial data. As in the current Rate Schedule, Western will determine firming energy purchase expenses by using Reclamation’s longterm, median hydrological studies. The August 2014, 24-month study is used for the proposed Rate Order, and the April 2015, 24-month study for the final Rate Order. This reflects the firming purchase power requirements between projected generation and contract obligations for FY 2016–FY 2020. In the existing SLIP–F9 Rate Schedule, $4 million a year is projected in the remaining out years to cover operational costs for the Energy Marketing and Management Office (EMMO) in Montrose, Colorado. The proposed Rate Schedule, SLIP–F10, will include the $4 million for the EMMO operational costs every year, not just the out years. Table 1 below displays the current and proposed Firm Power Rates. TABLE 1—COMPARISON OF EXISTING AND PROPOSED FIRM POWER RATES Existing rate under rate schedule SLIP–F9 effective October 1, 2008 rljohnson on DSK3VPTVN1PROD with NOTICES Rate schedule Proposed rate under rate schedule SLIP–F10 effective October 1, 2015 Change (percent) Base Rate: Firm Energy: (mills/kWh) .................................................................................. Firm Capacity: ($kW/month) ............................................................................. Composite Rate: (mills/kWh) ................................................................................... 12.19 5.18 29.62 1 Rate Order No. WAPA–137, 73 FR 52980, September 12, 2008. FERC confirmed and approved 2 Rate Order No. WAPA–161, 78 FR 56692, September 13, 2013. VerDate Sep<11>2014 14:48 Dec 08, 2014 Jkt 235001 the rate schedules on June 19, 2009, under FERC Docket No. EF08–5171–000 (127 FERC ¶ 62,220). PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\09DEN1.SGM 12.38 5.26 29.93 09DEN1 1.6 1.5 1.0 Federal Register / Vol. 79, No. 236 / Tuesday, December 9, 2014 / Notices rljohnson on DSK3VPTVN1PROD with NOTICES Cost Recovery Charge In setting its firm power rate, Western forecasts generation available from the SLCA/IP units and projects the firming energy purchase expense over the ratesetting period. These firming expense projections are included in the annual revenue requirement of the firm power rate. The volatility of hydropower generation and power prices continue to be a concern for costrecovery issues for the SLCA/IP. To adequately recover expenses in times of financial hardship, Western will continue to calculate the Cost Recovery Charge (CRC) as in the current Rate Schedule SLIP–F9. The CRC is an additional charge on all sustainable hydropower (SHP) energy deliveries (long-term SLCA/IP hydropower capacity with energy) that may be implemented when, among other things, the Basin Fund’s balance is at risk due to low hydropower generation, high prices for firming power, funding for capitalized investments, etc. Western will establish the energy waiver level (WL) per the formulas of the CRC. The WL provides Customers the ability for Western to reduce purchase power expenses by scheduling less energy than their contractual amounts. Customers may choose not to take the full SHP energy supplied using the WL. For those Customers who voluntarily schedule no more energy than their proportionate share of the WL, Western will waive the CRC for that year. The conditions that would trigger the CRC, as well as a more detailed formula methodology of how and when the CRC would apply, will be discussed in detail in the rate brochure and at the public information forum. Western will continue to include a mechanism that allows for recalculation of the CRC if the annual water release from Glen Canyon Dam falls below 8.23 million acre-feet. The proposed changes for the CRC will include ‘‘tiers’’ to quantify the need for a CRC-based on the balance of the Basin Fund and Western’s ability to meet contractual agreements. The CRC will be implemented at the discretion of Western when the Basin Fund’s balance meets the criteria in the tiers below. The Basin Fund Beginning Balance (BFBB) determines the applicable tier criteria. The minimum Basin Fund target balance is $40 million. In addition to the current process of an annual review for tiers one through three below and Customer notification in May for the upcoming FY, Western will conduct additional reviews as specified in tiers four and five below that are tailored to meet the urgency for cost recovery: VerDate Sep<11>2014 14:48 Dec 08, 2014 Jkt 235001 CRSP has the option to charge or not charge a CRC if the BFBB is: i. Greater than $150 million with an expected decrease below $75 million. ii. Less than $150 million but greater than $120 million with an expected 50percent decrease. iii. Less than $120 million but greater than $90 million with an expected 40percent decrease. iv. Less than $90 million but greater than $60 million with an expected 25percent decrease, conduct semi-annual reviews in May and November. v. Less than $60 million but greater than $40 million with an expected decrease below $40 million; conduct monthly reviews. If it is determined during the additional reviews that a CRC is necessary, Customers will be notified that a CRC will be implemented in 90 days. Western will provide its Customers with information concerning the anticipated CRC and give them 45 days to request a waiver or accept the CRC. The established CRC will be in effect for 12 months from the date implemented. Proposed Formula Transmission Rate (SP–PTP8) Western proposes to change the method used to calculate the Annual Transmission Costs to recover transmission expenses and investments on a current basis rather than a historical basis. This will allow Western to more accurately match cost recovery with cost incurrence. Western will use projections to estimate transmission costs and load for the upcoming year in the annual rate calculation. Currently, the rate calculation for a year uses actual data from 2 years prior to that year. This is a change in the manner in which the inputs for the rate are developed, rather than a change to the formula rate itself. Western will ‘‘true up’’ the cost estimates with Western’s actual costs. Revenue collected in excess of Western’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 recovers no more and no less than the actual transmission costs for the year. Proposed Rate for Regulation and Frequency Response Service (SP–FR4) The current rate states ‘‘[i]f the CRSP MC has regulation available for sale, the SLCA/IP firm power capacity rate, PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 73069 currently in effect, will be charged. If regulation is unavailable from SLCA/IP resources, the Western Area Lower Colorado or Western Area Colorado Missouri balancing authorities can provide the service, in accordance with their respective rate schedules.’’ Western proposes to use a formulabased rate that will more accurately reflect the cost of the Regulation and Frequency Response Service rather than the SLCA/IP firm power capacity rate. The formula will be discussed in detail in the rate brochure and during the Information Forum. Proposed Rate for Unreserved Use of Transmission Service (SP–UU1) Western is proposing to migrate from an Unauthorized Use Charge to an Unreserved Use of Transmission Service (Unreserved Use) Rate under the proposed Rate Schedule SP–UU1. Unreserved Use is provided when a transmission customer uses transmission service it has not reserved or exceeds its reserved capacity. Western proposes that a transmission customer that engages in Unreserved Use be assessed a penalty charge of 200 percent of Western’s approved transmission service rate for Firm Pointto-Point transmission service as follows: (i) The Unreserved Use penalty for a single hour of unreserved use will be based upon the rate for daily firm pointto-point service. (ii) The Unreserved Use penalty for more than one assessment for a given duration (e.g., daily) will increase to the next longest duration (e.g., weekly). (iii) The Unreserved Use penalty charge for multiple instances of unreserved use (e.g., more than 1 hour) within a day will be based on the rate for daily firm point-to-point service. Multiple instances of unreserved use isolated to 1 calendar week will result in a penalty based on the charge for weekly firm point-to-point service. The penalty charge for multiple instances of unreserved use during more than 1 week during a calendar month will be based on the rate for monthly firm point-to-point service. A transmission customer that exceeds its firm reserved capacity at any point of receipt or point of delivery, or an eligible customer that uses transmission service at a point of receipt or point of delivery that it has not reserved will be required to pay, in addition to the Unreserved Use penalties, for all ancillary services identified in Western’s Open Access Transmission Tariff based on the amount of transmission service it used and did not reserve. E:\FR\FM\09DEN1.SGM 09DEN1 73070 Federal Register / Vol. 79, No. 236 / Tuesday, December 9, 2014 / Notices Proposed Rates for Network Integration Transmission, Non-Firm Point-to-Point Transmission, Scheduling-System Control and Dispatch, Reactive Supply and Voltage Control, Energy Imbalance, and Spinning and Supplemental Reserves (SP–NW4, SP–NFT7, SP–SD4, SP–RS4, SP–EI4, SP–SSR4) Western is not proposing any formula changes to the existing Rate Schedules for Network Integration Transmission, Non-Firm Point-to-Point Transmission, Scheduling-System Control & Dispatch, Reactive Supply & Voltage Control, Energy Imbalance, and Spinning & Supplemental Reserves. Legal Authority The proposed rates constitute a major rate adjustment, as defined by 10 CFR part 903, and Western will hold both a public information forum and a public comment forum. Western will review all timely public comments and make amendments or adjustments to the proposal as appropriate. A final rate schedule will be forwarded to the Deputy Secretary of Energy for approval on an interim basis. Western is establishing firm electric service rates for SLCA/IP under the Department of Energy Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)); and other acts that specifically apply to the projects involved. By Delegation Order No. 00–037.00A, effective October 25, 2013, the Secretary of Energy delegated: (1) The authority to develop power and transmission rates to Western’s Administrator; (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy; and (3) the authority to confirm, approve, and place into effect on a final basis, to remand, or to disapprove such rates to FERC. Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985. rljohnson on DSK3VPTVN1PROD with NOTICES Availability of Information All brochures, studies, comments, letters, memorandums, and other documents that Western initiates or uses to develop the proposed rates are available for inspection and copying at the Colorado River Storage Project Management Center, 150 East Social Hall Avenue, Suite 300, Salt Lake City, UT. Many of these documents and supporting information are also available on Western’s Web page, VerDate Sep<11>2014 14:48 Dec 08, 2014 Jkt 235001 located at http://www.wapa.gov/crsp/ ratescrsp/WAPA-169.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: December 1, 2014. Mark A. Gabriel, Administrator. [FR Doc. 2014–28866 Filed 12–8–14; 8:45 am] BILLING CODE 6450–01–P For general information contact: The TSCA-Hotline, ABVI-Goodwill, 422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 554– 1404; email address: TSCA-Hotline@ epa.gov. SUPPLEMENTARY INFORMATION: I. Chemical Substances and/or Mixtures Information about the following chemical substances and/or mixtures is provided in Unit IV.: A. Benzenediamine, ar,ar-diethyl-armethyl- (Chemical Abstracts Service (CAS) No. 68479–98–1). B. 2-Oxiranemethanamine, N-[4-(2oxiranylmethoxy)phenyl]-N-(2oxiranylmethyl)- (CAS No. 5026–74–4). C. Phenol, 2,4-bis(1-methyl-1phenylethyl)-6-[2-(2nitrophenyl)diazenyl]- (CAS No. 70693– 50–4). II. Federal Register Publication Requirement Section 4(d) of TSCA (15 U.S.C. 2603(d)) requires EPA to publish a notice in the Federal Register reporting the receipt of test data submitted pursuant to test rules promulgated under TSCA section 4 (15 U.S.C. 2603). III. Docket Information ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OPPT–2013–0677; FRL–9919–62] Receipt of Test Data Under the Toxic Substances Control Act Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: EPA is announcing its receipt of test data submitted pursuant to test rules issued by EPA under the Toxic Substances Control Act (TSCA). As required by TSCA, this document identifies each chemical substance and/ or mixture for which test data have been received; the uses or intended uses of such chemical substances and/or mixtures; and describes the nature of the test data received. Each chemical substance and/or mixture related to this announcement is identified in Unit I. under SUPPLEMENTARY INFORMATION. FOR FURTHER INFORMATION CONTACT: For technical information contact: Kathy Calvo, Chemical Control Division (7405M), Office of Pollution Prevention and Toxics, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460–0001; telephone number: (202) 564–8089; email address: calvo.kathy@epa.gov. SUMMARY: PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 A docket, identified by the docket identification (ID) number EPA–HQ– OPPT–2013–0677, has been established for this Federal Register document that announces the receipt of data. Upon EPA’s completion of its quality assurance review, the test data received will be added to the docket for the TSCA section 4 test rule that required the test data. Use the docket ID number provided in Unit IV. to access the test data in the docket for the related TSCA section 4 test rule. The docket for this Federal Register document and the docket for each related TSCA section 4 test rule is available electronically at http:// www.regulations.gov or in person at the Office of Pollution Prevention and Toxics Docket (OPPT Docket), Environmental Protection Agency Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566–1744, and the telephone number for the OPPT Docket is (202) 566–0280. Please review the visitor instructions and additional information about the docket available at http://www.epa.gov/dockets. E:\FR\FM\09DEN1.SGM 09DEN1

Agencies

[Federal Register Volume 79, Number 236 (Tuesday, December 9, 2014)]
[Notices]
[Pages 73067-73070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28866]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Colorado River Storage Project--Rate Order No. WAPA-169

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Salt Lake City Area Integrated Projects Firm 
Power Rate and Colorado River Storage Project Transmission and 
Ancillary Services Rates.

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SUMMARY: Western Area Power Administration (Western) is proposing 
adjustments to the Salt Lake City Area Integrated Projects (SLCA/IP) 
Firm Power Rate and the Colorado River Storage Project (CRSP) 
Transmission and Ancillary Services Rates. The SLCA/IP consists of the 
CRSP, Collbran,

[[Page 73068]]

and Rio Grande projects, which were integrated for marketing and 
ratemaking purposes on October 1, 1987, and two participating projects 
of the CRSP that have power facilities, the Dolores and Seedskadee 
projects. The current rates, under Rate Schedules SLIP-F9, SP-PTP7, SP-
NW3, SP-NFT6, SP-SD3, SP-RS3, SP-EI3, SP-FR3, and SP-SSR3 will expire 
September 30, 2015. The proposed rates, under Rate Schedules SLIP-F10, 
SP-PTP8, SP-NW4, SP-NFT7, SP-SD4, SP-RS4, SP-EI4, SP-FR4, SP-SSR4, and 
SP-UU1 are scheduled to be placed into effect on an interim basis on 
October 1, 2015, and will remain in effect through September 30, 2020, 
or until superseded. These rates will provide sufficient revenue to pay 
all annual costs, including operation, maintenance, replacements 
(OM&R), interest expenses, and the required repayment of investment 
within the allowable period.
    Western will prepare a brochure that provides detailed information 
on the rates and will make it available to all interested parties. 
Publication of this Federal Register notice (FRN) begins the formal 
process for the proposed rates.

DATES: The consultation and comment period closes on March 13, 2015. 
Western will present a detailed explanation of the proposed rates at a 
public information forum to be held on January 15, 2015, 11:30 a.m. 
MST, in Salt Lake City, Utah. Western will accept oral and written 
comments at a public comment forum to be held on February 5, 2015, 
11:30 a.m. MST, in Salt Lake City, Utah. Western will accept written 
comments any time during the consultation and comment period.

ADDRESSES: Written comments and requests to be informed of Federal 
Energy Regulatory Commission (FERC) actions concerning the rates 
submitted by Western to FERC for approval should be sent to: Ms. Lynn 
C. Jeka, CRSP Manager, Colorado River Storage Project Management 
Center, Western Area Power Administration, 150 East Social Hall Avenue, 
Suite 300, Salt Lake City, UT 84111-1580, telephone (801) 524-6372, 
email jeka@wapa.gov or CRSPMC-RATE-ADJ@WAPA.GOV. Western will post 
information regarding this rate process on its Web page located at: 
http://www.wapa.gov/crsp/ratescrsp/WAPA-169.htm. Western will post 
official comments received by letter and email to its Web page after 
the close of the comment period. Western must receive written comments 
by the end of the consultation and comment period to ensure 
consideration in Western's decision process. The location of the public 
information forum and the comment forum is the Holiday Inn & Suites 
Salt Lake City Airport West, 5001 Wiley Post Way, Salt Lake City, Utah.

FOR FURTHER INFORMATION CONTACT: Mr. Rodney G. Bailey, Power Marketing 
Manager, Colorado River Storage Project Management Center, Western Area 
Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake 
City, UT 84111-1580, telephone (801) 524-4007, email rbailey@wapa.gov.

SUPPLEMENTARY INFORMATION: The proposed rates for SLCA/IP Firm Power 
and CRSP Transmission and Ancillary Services will collect annual 
revenue sufficient to recover annual OM&R expenses, interest expense, 
irrigation assistance, and capital requirements, ensuring repayment of 
the project within the cost recovery criteria set forth in DOE Order RA 
6120.2.
    The Deputy Secretary of Energy approved Rate Schedules SLIP-F9 for 
SLCA/IP Firm Power and SP-PTP7, SP-NW3, SP-NFT6, SP-SD3, SP-RS3, SP-
EI3, SP-FR3, and SP-SSR3 for CRSP Transmission and Ancillary Services 
on August 1, 2008 \1\ for a 5-year period ending on September 30, 2013. 
The Deputy Secretary of Energy approved Rate Order WAPA-161 \2\ on 
September 6, 2013, extending the rates through September 30, 2015.
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    \1\ Rate Order No. WAPA-137, 73 FR 52980, September 12, 2008. 
FERC confirmed and approved the rate schedules on June 19, 2009, 
under FERC Docket No. EF08-5171-000 (127 FERC ] 62,220).
    \2\ Rate Order No. WAPA-161, 78 FR 56692, September 13, 2013.
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Firm Power Rate

    Under the current Rate Schedule SLIP-F9, the energy rate is 12.19 
mills per kilowatthour (mills/kWh), and the capacity rate is $5.18 per 
kilowattmonth (kWmonth). The composite rate is 29.62 mills/kWh.
    The proposed rates under Rate Schedule SLIP-F10 are intended to 
become effective October 1, 2015. The revenue requirements for the 
proposed rates are based on the fiscal year (FY) 2016 work plans for 
Western and the Bureau of Reclamation (Reclamation). These work plans 
form the basis for the FY 2016 Congressional budget requests for the 
two agencies. If available, the FY 2017 work plans will be included in 
the final rate order submission. The FY 2013 historical financial data 
are the latest available for the proposed rate. The final rate-setting 
study will include the FY 2014 historical financial data. As in the 
current Rate Schedule, Western will determine firming energy purchase 
expenses by using Reclamation's long-term, median hydrological studies. 
The August 2014, 24-month study is used for the proposed Rate Order, 
and the April 2015, 24-month study for the final Rate Order. This 
reflects the firming purchase power requirements between projected 
generation and contract obligations for FY 2016-FY 2020. In the 
existing SLIP-F9 Rate Schedule, $4 million a year is projected in the 
remaining out years to cover operational costs for the Energy Marketing 
and Management Office (EMMO) in Montrose, Colorado. The proposed Rate 
Schedule, SLIP-F10, will include the $4 million for the EMMO 
operational costs every year, not just the out years. Table 1 below 
displays the current and proposed Firm Power Rates.

                          Table 1--Comparison of Existing and Proposed Firm Power Rates
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                                                        Existing rate under  Proposed rate under
                                                        rate schedule SLIP-  rate schedule SLIP-      Change
                     Rate schedule                          F9 effective        F10 effective        (percent)
                                                          October 1, 2008      October 1, 2015
----------------------------------------------------------------------------------------------------------------
Base Rate:
    Firm Energy: (mills/kWh)..........................                12.19                12.38             1.6
    Firm Capacity: ($kW/month)........................                 5.18                 5.26             1.5
Composite Rate: (mills/kWh)...........................                29.62                29.93             1.0
----------------------------------------------------------------------------------------------------------------


[[Page 73069]]

Cost Recovery Charge

    In setting its firm power rate, Western forecasts generation 
available from the SLCA/IP units and projects the firming energy 
purchase expense over the ratesetting period. These firming expense 
projections are included in the annual revenue requirement of the firm 
power rate. The volatility of hydropower generation and power prices 
continue to be a concern for cost-recovery issues for the SLCA/IP. To 
adequately recover expenses in times of financial hardship, Western 
will continue to calculate the Cost Recovery Charge (CRC) as in the 
current Rate Schedule SLIP-F9. The CRC is an additional charge on all 
sustainable hydropower (SHP) energy deliveries (long-term SLCA/IP 
hydropower capacity with energy) that may be implemented when, among 
other things, the Basin Fund's balance is at risk due to low hydropower 
generation, high prices for firming power, funding for capitalized 
investments, etc. Western will establish the energy waiver level (WL) 
per the formulas of the CRC. The WL provides Customers the ability for 
Western to reduce purchase power expenses by scheduling less energy 
than their contractual amounts. Customers may choose not to take the 
full SHP energy supplied using the WL. For those Customers who 
voluntarily schedule no more energy than their proportionate share of 
the WL, Western will waive the CRC for that year. The conditions that 
would trigger the CRC, as well as a more detailed formula methodology 
of how and when the CRC would apply, will be discussed in detail in the 
rate brochure and at the public information forum. Western will 
continue to include a mechanism that allows for re-calculation of the 
CRC if the annual water release from Glen Canyon Dam falls below 8.23 
million acre-feet.
    The proposed changes for the CRC will include ``tiers'' to quantify 
the need for a CRC-based on the balance of the Basin Fund and Western's 
ability to meet contractual agreements. The CRC will be implemented at 
the discretion of Western when the Basin Fund's balance meets the 
criteria in the tiers below. The Basin Fund Beginning Balance (BFBB) 
determines the applicable tier criteria. The minimum Basin Fund target 
balance is $40 million. In addition to the current process of an annual 
review for tiers one through three below and Customer notification in 
May for the upcoming FY, Western will conduct additional reviews as 
specified in tiers four and five below that are tailored to meet the 
urgency for cost recovery:
    CRSP has the option to charge or not charge a CRC if the BFBB is:
    i. Greater than $150 million with an expected decrease below $75 
million.
    ii. Less than $150 million but greater than $120 million with an 
expected 50-percent decrease.
    iii. Less than $120 million but greater than $90 million with an 
expected 40-percent decrease.
    iv. Less than $90 million but greater than $60 million with an 
expected 25-percent decrease, conduct semi-annual reviews in May and 
November.
    v. Less than $60 million but greater than $40 million with an 
expected decrease below $40 million; conduct monthly reviews.
    If it is determined during the additional reviews that a CRC is 
necessary, Customers will be notified that a CRC will be implemented in 
90 days. Western will provide its Customers with information concerning 
the anticipated CRC and give them 45 days to request a waiver or accept 
the CRC. The established CRC will be in effect for 12 months from the 
date implemented.

Proposed Formula Transmission Rate (SP-PTP8)

    Western proposes to change the method used to calculate the Annual 
Transmission Costs to recover transmission expenses and investments on 
a current basis rather than a historical basis. This will allow Western 
to more accurately match cost recovery with cost incurrence. Western 
will use projections to estimate transmission costs and load for the 
upcoming year in the annual rate calculation. Currently, the rate 
calculation for a year uses actual data from 2 years prior to that 
year. This is a change in the manner in which the inputs for the rate 
are developed, rather than a change to the formula rate itself.
    Western will ``true up'' the cost estimates with Western's actual 
costs. Revenue collected in excess of Western'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 recovers no more and 
no less than the actual transmission costs for the year.

Proposed Rate for Regulation and Frequency Response Service (SP-FR4)

    The current rate states ``[i]f the CRSP MC has regulation available 
for sale, the SLCA/IP firm power capacity rate, currently in effect, 
will be charged. If regulation is unavailable from SLCA/IP resources, 
the Western Area Lower Colorado or Western Area Colorado Missouri 
balancing authorities can provide the service, in accordance with their 
respective rate schedules.'' Western proposes to use a formula-based 
rate that will more accurately reflect the cost of the Regulation and 
Frequency Response Service rather than the SLCA/IP firm power capacity 
rate. The formula will be discussed in detail in the rate brochure and 
during the Information Forum.

Proposed Rate for Unreserved Use of Transmission Service (SP-UU1)

    Western is proposing to migrate from an Unauthorized Use Charge to 
an Unreserved Use of Transmission Service (Unreserved Use) Rate under 
the proposed Rate Schedule SP-UU1. Unreserved Use is provided when a 
transmission customer uses transmission service it has not reserved or 
exceeds its reserved capacity.
    Western proposes that a transmission customer that engages in 
Unreserved Use be assessed a penalty charge of 200 percent of Western's 
approved transmission service rate for Firm Point-to-Point transmission 
service as follows:
    (i) The Unreserved Use penalty for a single hour of unreserved use 
will be based upon the rate for daily firm point-to-point service.
    (ii) The Unreserved Use penalty for more than one assessment for a 
given duration (e.g., daily) will increase to the next longest duration 
(e.g., weekly).
    (iii) The Unreserved Use penalty charge for multiple instances of 
unreserved use (e.g., more than 1 hour) within a day will be based on 
the rate for daily firm point-to-point service. Multiple instances of 
unreserved use isolated to 1 calendar week will result in a penalty 
based on the charge for weekly firm point-to-point service. The penalty 
charge for multiple instances of unreserved use during more than 1 week 
during a calendar month will be based on the rate for monthly firm 
point-to-point service.
    A transmission customer that exceeds its firm reserved capacity at 
any point of receipt or point of delivery, or an eligible customer that 
uses transmission service at a point of receipt or point of delivery 
that it has not reserved will be required to pay, in addition to the 
Unreserved Use penalties, for all ancillary services identified in 
Western's Open Access Transmission Tariff based on the amount of 
transmission service it used and did not reserve.

[[Page 73070]]

Proposed Rates for Network Integration Transmission, Non-Firm Point-to-
Point Transmission, Scheduling-System Control and Dispatch, Reactive 
Supply and Voltage Control, Energy Imbalance, and Spinning and 
Supplemental Reserves (SP-NW4, SP-NFT7, SP-SD4, SP-RS4, SP-EI4, SP-
SSR4)

    Western is not proposing any formula changes to the existing Rate 
Schedules for Network Integration Transmission, Non-Firm Point-to-Point 
Transmission, Scheduling-System Control & Dispatch, Reactive Supply & 
Voltage Control, Energy Imbalance, and Spinning & Supplemental 
Reserves.

Legal Authority

    The proposed rates constitute a major rate adjustment, as defined 
by 10 CFR part 903, and Western will hold both a public information 
forum and a public comment forum. Western will review all timely public 
comments and make amendments or adjustments to the proposal as 
appropriate. A final rate schedule will be forwarded to the Deputy 
Secretary of Energy for approval on an interim basis.
    Western is establishing firm electric service rates for SLCA/IP 
under the Department of Energy Organization Act (42 U.S.C. 7152); the 
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, particularly section 9(c) of the 
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)); and other acts 
that specifically apply to the projects involved.
    By Delegation Order No. 00-037.00A, effective October 25, 2013, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to Western's Administrator; (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985.

Availability of Information

    All brochures, studies, comments, letters, memorandums, and other 
documents that Western initiates or uses to develop the proposed rates 
are available for inspection and copying at the Colorado River Storage 
Project Management Center, 150 East Social Hall Avenue, Suite 300, Salt 
Lake City, UT. Many of these documents and supporting information are 
also available on Western's Web page, located at http://www.wapa.gov/crsp/ratescrsp/WAPA-169.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: December 1, 2014.
Mark A. Gabriel,
Administrator.
[FR Doc. 2014-28866 Filed 12-8-14; 8:45 am]
BILLING CODE 6450-01-P