Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-170, 44339-44350 [2015-18240]

Download as PDF Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices provide copies of their protests only to the party or parties directly involved in the protest. Persons who wish to comment only on the environmental review of this project should submit an original and two copies of their comments to the Secretary of the Commission. Environmental commentors will be placed on the Commission’s environmental mailing list, will receive copies of the environmental documents, and will be notified of meetings associated with the Commission’s environmental review process. Environmental commentors will not be required to serve copies of filed documents on all other parties. However, the non-party commentors will not receive copies of all documents filed by other parties or issued by the Commission (except for the mailing of environmental documents issued by the Commission) and will not have the right to seek court review of the Commission’s final order. The Commission strongly encourages electronic filings of comments, protests and interventions in lieu of paper using the ‘‘eFiling’’ link at http:// www.ferc.gov. Persons unable to file electronically should submit an original and 7 copies of the protest or intervention to the Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426. Comment Date: 5:00 p.m. Eastern Time on July August 11, 2015. Dated: July 21, 2015. Kimberly D. Bose, Secretary. [FR Doc. 2015–18297 Filed 7–24–15; 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 Final Transmission and Ancillary Services Formula Rates. AGENCY: The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA–170 and Rate Schedules WAUGP–ATRR, WAUGP– AS1, WAUW–AS3, WAUW–AS4, WAUW–AS5, WAUW–AS6 and WAUW–AS7. Through this notice, the Western Area Power Administration (Western), places formula transmission and ancillary services rates for Western’s Pick-Sloan Missouri Basin tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 Program—Eastern Division (P–SMBP— ED) into effect on an interim basis. The provisional rates will be in effect until the Federal Energy Regulatory Commission (FERC) confirms, approves, and places them into effect on a final basis, or until they are superseded. The provisional formula rates will provide sufficient revenue to pay all associated annual costs, including interest expense, and repay required investment within the allowable periods. DATES: Formula rates for Transmission and Ancillary Services under Rate Schedules WAUGP–ATRR, WAUGP– AS1, WAUW–AS3, WAUW–AS4, WAUW–AS5, WAUW–AS6 and WAUW–AS7 are effective on the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-Upper Great Plains Region (Western-UGP) transmission facilities to Southwest Power Pool, Inc. (SPP) and will remain in effect until September 30, 2020, pending approval by FERC on a final basis or until superseded. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. 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: Western published a Federal Register Notice on November 3, 2014, (79 FR 65205) announcing the proposed formula rates for transmission service, initiating a public consultation and comment period, and setting forth the dates and locations of public information and public comment forums. Western held a public information forum in Omaha, Nebraska on November 19, 2014, and a public information forum in Fargo, North Dakota, on November 20, 2014. Western explained the proposed formula rates, answered questions, and provided Rate Brochures and presentation handouts. Western held a public comment forum in Omaha, Nebraska, on December 17, 2014, and a public comment forum in Fargo, North Dakota, on December 18, 2014. These forums provided the public with opportunity to comment for the record. On December 19, 2014, Western notified all P–SMBP—ED customers and PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 44339 interested parties of an updated Rate Brochure that was available on the Web site at www.wapa.gov/ugp/rates/ default.htm. This Web site also contained information about this formula rate adjustment process. Western followed the Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions, 10 CFR part 903, as described above, in developing these formula rates. No individuals commented at either of the public comment forums, and Western received no comments during the consultation and comment period. Western-UGP has signed a Membership Agreement with SPP. Upon achieving final FERC approval of membership within SPP, Western will transfer functional control of WesternUGP’s P–SMBP—ED eligible transmission facilities located in the Upper Missouri Zone (UMZ or Zone 19) to SPP. Western-UGP will then merge its Western Area Power Administration, Upper Great Plains East Balancing Authority Area (WAUE) in the Eastern Interconnection into SPP’s Balancing Authority Area and place its transmission system located in the Eastern Interconnection into SPP’s Integrated Marketplace. Western-UGP will retain operation of its Western Area Power Administration, Upper Great Plains West Balancing Authority Area (WAUW) in the Western Interconnection as the Balancing Authority, and will not place its transmission system located in the Western Interconnection into SPP’s Integrated Marketplace. Even though SPP’s Integrated Marketplace will not extend into the Western Interconnection, Western-UGP’s eligible transmission facilities in the Western Interconnection will be included under SPP’s Tariff to allow SPP to provide transmission service over all of WesternUGP’s eligible transmission facilities in the UMZ regardless of whether they are located in the Eastern or Western Interconnection. The UMZ is a single SPP rate zone that includes WesternUGP’s transmission facilities located in the Eastern and Western Interconnections. Therefore, one formula rate schedule WAUGP–ATRR will calculate the Annual Transmission Revenue Requirement (ATRR) for all of Western-UGP’s eligible transmission facilities that are transferred to the functional control of SPP and used by SPP to provide transmission service under the SPP Tariff. For 2015, the Western-UGP estimated ATRR is $123,816,622 based on facilities that Western-UGP has proposed to be included per Attachment AI of SPP’s E:\FR\FM\27JYN1.SGM 27JYN1 tkelley on DSK3SPTVN1PROD with NOTICES 44340 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices Tariff and feedback from SPP regarding Attachment AI qualifying criteria. The list of Western-UGP facilities proposed for inclusion is available on the Web site at www.wapa.gov/ugp/rates/ default.htm. Western-UGP has also developed a formula rate schedule WAUGP–AS1 for Scheduling, System Control, and Dispatch Service (SSCD), which will include Western-UGP’s costs associated with providing this service in the UMZ, and formula rate schedules to calculate charges for ancillary services associated with WAUW. These ancillary services formula rate schedules are necessary because the Western-UGP transmission facilities in WAUW are not included within SPP’s Integrated Marketplace, and SPP’s standard market-based ancillary services will not be available. As a result, when SPP provides transmission service in the WAUW, the associated ancillary services will need to be provided by Western-UGP as the Balancing Authority, if it is capable of doing so. These ancillary service 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 provisional transmission and ancillary service rate schedules contain formula-based rates that will be recalculated annually and submitted to SPP to provide and bill for services under the SPP Tariff. The formulas in these rate schedules use estimates for the upcoming year to calculate revenue requirements and have a true-up to actual costs in a subsequent year. 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 Department of Energy procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985. Under Delegation Order Nos. 00– 037.00A and 00–001.00E, and in compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm, approve, and place Rate Order No. WAPA–170 and the proposed formula rates for transmission and ancillary VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 services into effect on an interim basis. The new Rate Schedules WAUGP– ATRR, WAUGP–AS1, WAUW–AS3, WAUW–AS4, WAUW–AS5, WAUW– AS6 and WAUW–AS7 will be submitted promptly to FERC for confirmation and approval on a final basis. Dated: July 17, 2015. Elizabeth Sherwood-Randall, Deputy Secretary of Energy. DEPARTMENT OF ENERGY DEPUTY SECRETARY In the matter of: Western Area Power Administration, Rate Adjustment for the Pick-Sloan, Missouri Basin Program— Eastern Division Rate Order No. WAPA–170 ORDER CONFIRMING, APPROVING, AND PLACING THE PICK–SLOAN MISSOURI BASIN PROGRAM— EASTERN DIVISION TRANSMISSION AND ANCILLARY SERVICES FORMULA RATES INTO EFFECT ON AN INTERIM BASIS These transmission and ancillary services formula rates are established in accordance with section 302 of the Department of Energy (DOE) Organization Act (42 U.S.C. 7152). This Act transferred to and vested in the Secretary of Energy the power marketing functions of the Secretary of the Department of the Interior and the Bureau of Reclamation under 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 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 the Federal Energy Regulatory Commission (FERC). Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985. Acronyms and Definitions As used in this Rate Order, the following acronyms and definitions apply: PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 $/MW-year: Annual charge for capacity (i.e., $ per megawatt (MW) per year). A&GE: Administrative and General Expense. ATRR: Annual Transmission Revenue Requirement. Balancing Authority (BA): The responsible entity that integrates resource plans ahead of time, maintains load-interchangegeneration balance within a designated area, and supports interconnection frequency in real-time. Balancing Authority Area: An electric system or systems, bounded by interconnection metering and telemetry, capable of controlling generation to maintain its interchange schedule with other Balancing Authorities and contributing to frequency regulation of the Interconnection. Basin Electric: Basin Electric Power Cooperative. Capacity: The electric capability of a generator, transformer, transmission circuit, or other equipment, expressed in kilowatts (kW). Corps: U.S. Army Corps of Engineers. DOE: United States Department of Energy. Eastern Interconnection: A major alternatingcurrent electrical grid in North America. The Eastern Interconnection reaches from Central Canada eastward to the Atlantic coast (excluding Quebec), south to Florida, and back west to the foot of the Rockies (excluding most of Texas). Energy: Power produced or delivered over a period of time. Measured in terms of the work capacity over a period of time. It is expressed in kilowatt hours. Energy Imbalance Service: A service that provides energy correction for any hourly mismatch between a Southwest Power Pool Transmission Customer’s energy supply and the demand served. FERC: Federal Energy Regulatory Commission. FRN: Federal Register notice. Generator Imbalance Service: A service that provides energy correction for any hourly mismatch between generator output and a delivery schedule from that generator to another Balancing Authority Area or to a load within the same Balancing Authority Area. Heartland: Heartland Consumers Power District. Integrated System (IS): Transmission system combining assets of Western-UGP, Basin Electric, and Heartland prior to WesternUGP’s integration into SPP. Intermittent Resource: An electric generator that is not dispatchable and cannot store its fuel source and, therefore, cannot respond to changes in demand or respond to transmission security restraints. Kilowatt (kW): Electrical unit of capacity that equals 1,000 watts. Kilowatt hour (kWh): Electrical unit of energy that equals 1,000 watts in 1 hour. Load: The amount of electric power or energy delivered or required at any specified point(s) on a system. Megawatt (MW): The electrical unit of capacity that equals 1 million watts or 1,000 kilowatts. NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321–4347). Open Access Same-Time Information System (OASIS): An electronic posting system that E:\FR\FM\27JYN1.SGM 27JYN1 tkelley on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices a service provider maintains for transmission access data that allows all customers to view information simultaneously. O&M: Operation and Maintenance. P–SMBP: Pick-Sloan Missouri Basin Program. P–SMBP ED: Pick-Sloan Missouri Basin Program—Eastern Division. Provisional Rate: A rate that has been confirmed, approved, and placed into effect on an interim basis by the Deputy Secretary of Energy. Rate Brochure: A document prepared for public distribution explaining the rationale and background for the rate proposal contained in this rate order. Regulation and Frequency Response Service: A service that provides for following the moment-to-moment variations in the demand or supply in a Balancing Authority Area and maintaining scheduled interconnection frequency. Reserve Services: Spinning Reserve Service and Supplemental Reserve Service. Revenue Requirement: The revenue required to recover annual expenses (such as O&M, purchase power, transmission service expenses, interest expense, and deferred expenses) and repay Federal investments, and other assigned costs. Schedule: An agreed-upon transaction size (megawatts), beginning and ending ramp times and rate, and type of service required for delivery and receipt of power between the contracting parties and the Balancing Authority(ies) involved in the transaction. Scheduling, System Control and Dispatch Service: A service that provides for (a) scheduling, (b) confirming and implementing an interchange schedule with other balancing authorities, including intermediary balancing authorities providing transmission service, and (c) ensuring operational security during the interchange transaction. Southwest Power Pool, Inc. (SPP): A Regional Transmission Organization. SPP’s Integrated Marketplace (Integrated Marketplace): The SPP Energy and Operating Reserve Markets and the Transmission Congestion Rights Markets. Spinning Reserve Service: Generation capacity needed to serve load immediately in the event of a system contingency. Spinning Reserve Service may be provided by generating units that are on-line and loaded at less than maximum output. Supplemental Reserve Service: Generation capacity needed to serve load in the event of a system contingency; however, it is not available immediately to serve load but rather within a short period of time. Supplemental Reserve Service may be provided by generation units that are online but unloaded, by quick start generation or by interruptible load. System: An interconnected combination of generation, transmission and/or distribution components comprising an electric utility, independent power producer(s) (IPP), or group of utilities and IPP(s). SPP Tariff: Southwest Power Pool, Open Access Transmission Tariff, approved by FERC. SPP Transmission Customer: Any eligible customer (or its designated agent) that VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 44341 receives transmission service under the SPP Tariff. Transmission Provider: Any utility that owns, operates, or controls facilities used to transmit electric energy in interstate commerce. SPP is the Transmission Provider under the SPP Tariff. Transmission System: The facilities owned, controlled, or operated by the transmission owner or Transmission Provider that are used by the Transmission Provider to provide transmission service. Upper Missouri Zone (UMZ): Multi-owner zone in SPP in which Western-UGP will participate as a Transmission Owner; also defined as Zone 19 under the SPP Tariff. The UMZ includes transmission facilities located in both the Eastern and Western Interconnections. WAUE: Western Area Power Administration, Upper Great Plains East Balancing Authority Area. WAUE is located in the Eastern Interconnection, and will cease to exist when it is merged into the SPP Balancing Authority Area. WAUW: Western Area Power Administration, Upper Great Plains West Balancing Authority Area. WAUW is located in the Western Interconnection. Watertown Operations Office: Western Area Power Administration, Upper Great Plains Region, Operations Office, 1330 41st Street SE., Watertown, South Dakota. Western: United States Department of Energy, Western Area Power Administration. Western Interconnection: A major alternating current power grid in North America. The Western Interconnection stretches from Western Canada south to Baja California in Mexico, reaching eastward over the Rockies to the Great Plains. Western Interconnection is comprised of the states of Washington, Oregon, California, Idaho, Nevada, Utah, Arizona, Colorado, Wyoming, portions of Montana, South Dakota, Nebraska, New Mexico and Texas in the United States, the Provinces of British Columbia and Alberta in Canada, ´ and a portion of the Comision Federal de Electricidad’s system in Baja California in Mexico. Western-UGP: United States Department of Energy, Western Area Power Administration, Upper Great Plains Region. Western-UGP is the definition for Western’s Upper Great Plains Region in the SPP Tariff. Public Notice and Comment Effective Date No oral or written comments were received during the consultation and comment period. Rate Schedules WAUGP–ATRR, WAUGP–AS1, WAUW–AS3, WAUW– AS4, WAUW–AS5, WAUW–AS6, and WAUW–AS7 are effective on the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP, and will remain in effect until September 30, 2020, pending approval by FERC on a final basis or until superseded. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 Western followed the Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in developing these formula rates. The steps Western took to involve interested parties in the rate process were: 1. A FRN was published on November 3, 2014, (79 FR 65205) announcing the proposed rates for transmission service, initiating a public consultation and comment period, and setting forth the dates and locations of public information and public comment forums. 2. On November 3, 2014, Western notified all P–SMBP—ED customers and interested parties of the proposed rates and provided a copy of the published FRN. 3. On November 19, 2014, Western held a public information forum in Omaha, Nebraska; and on November 20, 2014, Western held a public information forum in Fargo, North Dakota. Western explained the proposed rates, answered questions, and provided Rate Brochures and presentation handouts. 4. On December 17, 2014, Western held a public comment forum in Omaha, Nebraska; and on December 18, 2014, Western held a public comment forum in Fargo, North Dakota. This provided the public with opportunity to comment for the record. No individuals commented at either of these forums. 5. On December 19, 2014, Western notified all P–SMBP—ED customers and interested parties of an updated Rate Brochure that was available on the Web site at www.wapa.gov/ugp/rates/ default.htm. 6. Western did not receive any oral or written comments during the consultation and comment period. 7. Western provided a Web site for information about this rate adjustment process. The Web site is located at www.wapa.gov/ugp/rates/default.htm. Comments Project Description The initial stages of the Missouri River Basin Project were authorized by section 9 of the Flood Control Act of 1944 (58 Stat. 887, 890, Pub. L. 78–534). It was later renamed the P–SMBP. The P–SMBP is a comprehensive program with the following authorized functions: Flood control, navigation improvement, irrigation, municipal and industrial water development, and hydroelectric production for the entire Missouri River E:\FR\FM\27JYN1.SGM 27JYN1 tkelley on DSK3SPTVN1PROD with NOTICES 44342 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices Basin. Multipurpose projects have been developed on the Missouri River and its tributaries in Colorado, Montana, Nebraska, North Dakota, South Dakota, and Wyoming. Western-UGP markets significant quantities of Federally-generated hydroelectric power from the P– SMBP—ED. This power is generated by eight power plants located in Montana, North Dakota, and South Dakota. Western-UGP owns and operates from its Watertown Operations Office an extensive system of high-voltage transmission facilities that Western-UGP uses to market approximately 2,400 MW of capacity from Federal projects within the Missouri River Basin to customers located within the P–SMBP—ED. This marketing area includes Montana, east of the Continental Divide, all of North and South Dakota, eastern Nebraska, western Iowa, and western Minnesota. Historically, the Western-UGP transmission facilities in the P–SMBP— ED have been integrated with transmission facilities of Basin Electric and Heartland to provide transmission services over the IS. The IS included 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 included transmission facilities located in both the Eastern and Western Interconnections separated by the Miles City direct current (DC) tie and the Fort Peck Power Plant substation. WesternUGP also has operated two Balancing Authority Areas within the IS—WAUW and WAUE—that were also separated by the Miles City DC tie and the Fort Peck Power Plant substation. Western-UGP’s historic rate schedules for the IS consisted of separate rates for firm and non-firm transmission service and ancillary services rates for the transmission facilities in the P–SMBP— ED. On November 1, 2013, Western published a Notice of Recommendation to Pursue Regional Transmission Organization Membership (78 FR 65641). Subsequently, Western-UGP has signed a Membership Agreement with SPP. Upon achieving final FERC approval of membership within SPP, Western-UGP will transfer functional control of all eligible Western-UGP P– SMBP—ED facilities in the Eastern and Western Interconnections, which include nearly 100 substations and 7,800 miles of transmission lines, to SPP. Subsequently, P–SMBP—ED transmission and ancillary services will no longer be available on the IS under Western’s Open Access Transmission VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 Tariff, but instead will be available from SPP as the Transmission Provider under SPP’s Tariff. P–SMBP—ED Transmission and Ancillary Services Rate Study Existing IS 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 for a 5-year period beginning on January 1, 2010, and ending December 31, 2014. These rates were extended through December 31, 2016, under Rate Order No. WAPA–168. When Western-UGP transfers functional control of its eligible P–SMBP—ED facilities to SPP, 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. When Western-UGP transfers functional control of P–SMBP—ED eligible transmission facilities located in the Upper Missouri Zone (UMZ or Zone 19) to SPP, Western-UGP will merge its WAUE in the Eastern Interconnection into SPP’s Balancing Authority Area and place its transmission system located in the Eastern Interconnection into SPP’s Integrated Marketplace. Western-UGP will retain operation of its WAUW in the Western Interconnection as the Balancing Authority, and will not place its transmission system located in the Western Interconnection into SPP’s Integrated Marketplace. Even though SPP’s Integrated Marketplace will not extend into the Western Interconnection, Western-UGP’s eligible transmission facilities in the Western Interconnection will be included under SPP’s Tariff to allow SPP to provide transmission service over all of WesternUGP’s eligible transmission facilities in the UMZ regardless of whether they are located in the Eastern or Western Interconnection. The UMZ is a single SPP rate zone that includes WesternUGP’s transmission facilities located in the Eastern and Western Interconnections. Therefore, one formula rate schedule, WAUGP–ATRR, will calculate the Annual Transmission Revenue Requirement (ATRR) for all of Western-UGP’s eligible transmission facilities that are transferred to the functional control of SPP and used by SPP to calculate charges for transmission service under the SPP Tariff. Western-UGP will utilize a formula template to calculate its ATRR. Western-UGP has also developed formula rate schedule WAUGP–AS1 for Scheduling, System Control, and Dispatch Service (SSCD), which will PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 include Western-UGP’s costs associated with providing this service in the UMZ, and formula rate schedules to calculate charges for ancillary services associated with its WAUW. These ancillary services formula rate schedules are necessary because the Western-UGP transmission facilities in its WAUW are not included within SPP’s Integrated Marketplace, and SPP’s standard market-based ancillary services will not be available. Therefore, when SPP provides transmission service in the WAUW, the associated ancillary services will need to be provided by Western-UGP as the Balancing Authority. These ancillary service 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 provisional formula rates for use under SPP’s Tariff include Transmission and Ancillary Service Rates as described in Rate Schedules WAUGP–ATRR, WAUGP–AS1, WAUW–AS3, WAUW– AS4, WAUW–AS5, WAUW–AS6, and WAUW–AS7. These rates will be submitted to SPP as the Transmission Provider in order for SPP to bill SPP Transmission Customers for transmission and ancillary services that SPP provides over Western-UGP’s transmission facilities under the SPP Tariff. The costs under the formulas in these rate schedules will be recalculated annually and those utilizing estimates for the upcoming year to calculate revenue requirements will include a true-up to actual costs in a subsequent year. The annual revenue requirements include O&M expenses, A&GE, interest expense, and depreciation expense and are offset by appropriate estimated revenue credits. Annual audited financial data will be used to true-up the cost estimates and credit estimates used to project these forward-looking rates to the actual expenses and credits. Western-UGP will true-up the estimates it used in the calculation of its calendar year 2013, 2014, and 2015 IS rate charges that were in place prior to joining SPP when calculating these trueup rates. This IS true-up will only include Western-UGP’s portion of the IS revenue requirement, and these provisional formula rates for use under the SPP Tariff will only include Western-UGP’s IS true-up, if applicable. The IS true-up, if any, associated with the other IS owners’ portion of the IS revenue requirement is outside the E:\FR\FM\27JYN1.SGM 27JYN1 44343 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices scope of this rate process, and would be addressed by other IS owners. Western prepared Transmission and Ancillary Services rates studies to ensure that the formula rates are based on the cost of service of the Western- UGP eligible transmission facilities that will be transferred to the functional control of SPP and the associated operation of the WAUW. These studies included all applicable expenses and associated offsetting revenues. Provisional Rates The revenue requirements for 2015 for the individual services are outlined in the following table. PROVISIONAL WESTERN-UGP TRANSMISSION AND ANCILLARY SERVICES FORMULA RATES Provisional 2015 annual revenue requirement 1 Service Rate schedule No. Transmission ....................................................................... Scheduling, System Control, and Dispatch ........................ Regulation and Frequency Response ................................ Operating Reserves—Spinning and Supplemental Reserves. Energy Imbalance ............................................................... Generator Imbalance .......................................................... WAUGP–ATRR .................................................................. WAUGP–AS1 ..................................................................... WAUW–AS3 ....................................................................... WAUW–AS5 and WAUW–AS6 .......................................... 2 $123,816,622 WAUW–AS4 ....................................................................... WAUW–AS7 ....................................................................... N/A N/A 2 11,384,293 294,308 232,291 1 The new provisional formula rates and rate schedules will take effect on the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP. 2 ATRR estimate based upon facilities that Western-UGP has proposed to be included per Attachment AI of SPP’s Tariff and feedback from SPP regarding Attachment AI qualifying criteria. The list of Western-UGP facilities proposed for inclusion is available on the Web site at www.wapa.gov/ugp/rates/default.htm. Certification of Rates Western’s Administrator certified that the provisional formula rates for Transmission and Ancillary Services are the lowest possible rates consistent with sound business principles. The provisional formula rates were developed following administrative policies and applicable laws. tkelley on DSK3SPTVN1PROD with NOTICES Transmission Rate Discussion Formula Rate for Transmission Service Western-UGP will recover its transmission system related expenses and investments on a forward-looking basis by using projections to estimate transmission costs for the upcoming year, with a true-up in a subsequent year. For transmission service provided by SPP as the Transmission Provider under SPP’s Tariff, Western-UGP will provide its ATRR to SPP for determination of charges. SPP will use zonal and regional load and other applicable information, including additional annual transmission revenue requirements from other transmission owners with transmission facilities in the multi-owner UMZ to determine 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, which consist of O&M, interest expense, 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. Data used in the annual recalculation of the costs under the formula for WAUGP–ATRR effective on January 1 VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 each year will be made available to SPP and interested parties for review and comment on or shortly after September 1 each preceding year. Data used and the revenue requirement resulting from using these formulas will be posted on the applicable SPP Web site and/or SPP OASIS. Western-UGP will provide interested parties the opportunity to discuss and comment on the recalculated WAUGP–ATRR 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 WAUGP–ATRR. This will also provide interested parties the opportunity to comment before the costs are collected through the formula rate. Formula Rate for Scheduling, System Control, and Dispatch Service Western-UGP will use a formulabased rate methodology to calculate its annual revenue requirement for SSCD on a forward-looking basis by using projections to estimate applicable transmission-related costs associated with SSCD 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. A single SSCD rate applies for WesternUGP’s costs associated with providing SSCD in both the Eastern and Western Interconnections under the SPP Tariff. Western-UGP’s annual revenue requirement for SSCD will be used by SPP to determine the regional SPP Schedule 1 rate for SPP through and out transactions, and also to determine the zonal SPP Schedule 1 rate for the UMZ. SSCD is required to schedule the movement of power through, out of, PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 within, or into the SPP Balancing Authority Area and/or the WAUW. Therefore, Western’s SSCD will also be charged by SPP for transmission service within the Western Interconnection. Western-UGP’s annual revenue requirement for SSCD is derived by calculating Western-UGP’s applicable transmission-related annual costs associated with SSCD service, including O&M, interest expense, A&GE, and depreciation. 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 through a credit 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. Formula Rate for Regulation and Frequency Response Service Western-UGP will use 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 as the BA will need to provide Regulation and Frequency Response Service in the WAUW, which will be billed by SPP, as the Transmission Provider, to a SPP Transmission Customer along with the associated transmission service provided by SPP under the SPP Tariff. Regulation and Frequency Response Service in the WAUW is provided primarily by Corps facilities. The Corps’ E:\FR\FM\27JYN1.SGM 27JYN1 tkelley on DSK3SPTVN1PROD with NOTICES 44344 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices generation calculated fixed charge rate (in percent) is applied to the net plant investment of the Corps generation to derive 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 applied to the capacity of Corps generation reserved for Regulation and Frequency Response Service in the WAUW, producing the annual Corps generation cost for 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 will be recovered under the SPP Tariff under Rate Schedule WAUW–AS3. 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 through a credit 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. Western-UGP 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-UGP 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 WAUW to provide Regulation and Frequency Response Service to intermittent renewable generation resources serving load within the WAUW, costs for these regulation resources will become part of WesternUGP’s Regulation and Frequency Response Service. However, WesternUGP will not regulate for the difference between the output of an Intermittent Resource located within the WAUW and a delivery schedule from that generator serving load located outside of the WAUW. Intermittent Resources serving load outside the WAUW will be required to be pseudo-tied or VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 dynamically scheduled to another Balancing Authority Area. Formula 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 the WAUW over a single hour. Given the SPP Integrated Marketplace will not be extended into the Western Interconnection, Western-UGP as the BA will need to provide Energy Imbalance Service in the WAUW, which will be billed by SPP, as the Transmission Provider, to a SPP Transmission Customer along with the associated transmission service provided by SPP under the SPP Tariff. Western-UGP will offer this service, if it is capable of doing so, from its own resources or from resources available to it when transmission service is provided by SPP and used to serve load within the WAUW. The SPP Transmission Customer must either purchase this service from SPP or make alternative comparable arrangements pursuant to the SPP Tariff to satisfy its Energy Imbalance Service obligation. A SPP Transmission Customer may incur a charge 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. The rate for service within the WAUW will 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 the SPP 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 the SPP 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 SPP Transmission Customer in a schedule hour is greater than the energy scheduled or 90 percent of incremental cost when energy taken by a SPP Transmission Customer in a schedule hour is less than the scheduled amount; and (iii) deviations greater than ± 7.5 PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 percent (or 10 MW) of the scheduled transaction to be applied hourly to any energy imbalance that occurs as a result of the SPP 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 SPP Transmission Customer in a schedule 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 SPP Transmission Customer is less than the scheduled amount. 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 the applicable SPP Web site and/or SPP’s OASIS at least 30 days before 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. Formula Rates for Operating Reserves Service—Spinning and Supplemental Given the SPP Integrated Marketplace will not be extended into the Western Interconnection, Western-UGP as the BA will need to provide Operating Reserve—Spinning Reserve Service and Operating Reserve—Supplemental Reserve Service (together referred to as Reserve Services) in the WAUW, which will be billed by SPP, as the Transmission Provider, to a SPP Transmission Customer along with the associated transmission service provided by SPP under the SPP Tariff. Western-UGP will offer these services under the formula-based rate methodologies for Spinning Reserve Service and Supplemental Reserve Service and will use the reserve requirement of the reserve sharing program 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 E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices tkelley on DSK3SPTVN1PROD with NOTICES derived by taking the annual Corps generation cost to provide this service and adding costs associated with the current reserve sharing program. Western-UGP’s annual revenue requirement will be recovered under the SPP Tariff under Rate Schedules WAUW–AS5 and WAUW–AS6. 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 through a credit 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. Western-UGP has no long-term reserves available beyond its own internal requirements. At SPP’s request as the Transmission Provider, 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 SPP for the requesting SPP Transmission Customer. The SPP Transmission Customer is responsible to provide the transmission to deliver these reserves. In the event that Reserve Services are called upon for emergency use, the SPP Transmission Customer will be assessed a charge for energy used at the prevailing market energy rate in the WAUW. The prevailing market energy rate will be based on a representative hourly energy index or combination of indexes. The index to be used will be posted on the applicable SPP Web site and/or SPP’s OASIS at least 30 days prior to use for determining the prevailing market energy rate 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. Formula Rate for Generator Imbalance Service Generator Imbalance Service is provided when a difference occurs between the output of a generator located within the WAUW and a delivery schedule from that generator to: (1) another Balancing Authority Area or (2) a load within the WAUW over a single hour. Given the SPP Integrated Marketplace will not be extended into the Western Interconnection, WesternUGP as the BA must provide Generator Imbalance Service in the WAUW, which will be billed by SPP, as the Transmission Provider, to a SPP Transmission Customer along with the associated transmission service provided by SPP under the SPP Tariff. VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 Western-UGP will offer this service, if it is capable of doing so, from its own resources or from resources available to it, when SPP transmission service is used to deliver energy from a generator located within the WAUW. The SPP Transmission Customer must either purchase this service from SPP, or make alternative comparable arrangements pursuant to the SPP Tariff, to satisfy its Generator Imbalance Service obligation. A SPP Transmission Customer may incur a charge for either hourly generator imbalances under this Rate 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-UGP 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-UGP 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, WesternUGP will not regulate for the difference between the output of an Intermittent Resource located within the WAUW and a delivery schedule from that generator serving load located outside of the WAUW. Intermittent Resources serving load outside the WAUW will be required to be pseudo-tied or dynamically scheduled to another Balancing Authority Area. The rate for service within the WAUW will 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 generator imbalance that occurs as a result of the SPP 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; (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 the SPP 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 PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 44345 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 SPP 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. 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 SPP as the Transmission Provider, a Balancing Authority, 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 the applicable SPP Web site and/or SPP’s OASIS at least 30 days before 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. Availability of Information All documents related to this action are available for inspection and copying at the Upper Great Plains Regional Office, located at 2900 4th Avenue North, Billings, Montana. These documents are also available on Western’s Web site located at http:// www.wapa.gov/ugp/rates. RATEMAKING PROCEDURE REQUIREMENTS Environmental Compliance In compliance with the National Environmental Policy Act 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 has determined that this action is E:\FR\FM\27JYN1.SGM 27JYN1 44346 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices October 1, 2015 formula will be posted on the applicable SPP Web site and/or SPP Open Access Same-Time Information System. UNITED STATES DEPARTMENT OF ENERGY Rate Schedule WAUGP–AS1 categorically excluded from preparing an environmental assessment or an environmental impact statement. A copy of the categorical exclusion determination is available on WesternUGP’s Web site located at http:// www.wapa.gov/ugp/Environment. Rate Schedule WAUGP–ATRR Determination Under Executive Order 12866 UPPER GREAT PLAINS REGION PICK–SLOAN MISSOURI BASIN PROGRAM—EASTERN DIVISION 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. Submission to the Federal Energy Regulatory Commission The formula rates herein confirmed, approved, and placed into effect on an interim basis, together with supporting documents, will be submitted to FERC for confirmation and final approval. ORDER In view of the foregoing and under the authority delegated to me, I confirm and approve on an interim basis, effective on or after October 1, 2015, upon transfer of functional control of eligible WesternUGP facilities to SPP, formula rates for Transmission and Ancillary Services under Rate Schedules WAUGP–ATRR, WAUGP–AS1, WAUW–AS3, WAUW– AS4, WAUW–AS5, WAUW–AS6 and WAUW–AS7 for the Pick-Sloan Missouri Basin Program—Eastern Division Project of the Western Area Power Administration. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. The rate schedules shall remain in effect on an interim basis, pending the Federal Energy Regulatory Commission’s confirmation and approval of the rate schedules or substitute rates on a final basis through September 30, 2020, or until the rate schedules are superseded. tkelley on DSK3SPTVN1PROD with NOTICES Dated: July 17, 2015 Elizabeth Sherwood-Randall Deputy Secretary of Energy October 1, 2015 WESTERN AREA POWER ADMINISTRATION 18:58 Jul 24, 2015 Jkt 235001 WESTERN AREA POWER ADMINISTRATION ANNUAL TRANSMISSION REVENUE REQUIREMENT FOR TRANSMISSION SERVICE UPPER GREAT PLAINS REGION PICK–SLOAN MISSOURI BASIN PROGRAM—EASTERN DIVISION Effective On the first full day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible WesternUGP facilities to SPP, and shall remain in effect through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE Applicable Western Area Power AdministrationUpper Great Plains Region’s (WesternUGP) formula based Annual Transmission Revenue Requirement (ATRR) for its eligible transmission related facilities included under the Southwest Power Pool, Inc. (SPP) Tariff shall be calculated using the formula outlined below. Formula Rate Define: A = Operation & Maintenance allocated to transmission ($) B = Depreciation allocated to transmission ($) C = Interest Expense allocated to transmission ($) D = Revenue Credits ($) E = Scheduling, System Control, and Dispatch costs ($) F = Prior Period True-up ($) ATRR = A + B + C¥D¥E + F Note: Western-UGP will identify any portion of the ATRR eligible for SPP Regionwide cost sharing pursuant to the SPP Tariff in its Rate Formula Template submitted under Attachment H of the SPP Tariff. A recalculated annual revenue requirement will go into effect every January 1 based on the above formula and updated financial data. WesternUGP will annually notify SPP and make data and information available to interested parties for review and comment related to the recalculated annual revenue requirement on or shortly after September 1 of the preceding year. Data used and the charges resulting from using this VerDate Sep<11>2014 UNITED STATES DEPARTMENT OF ENERGY PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 Effective On the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP, and shall remain in effect through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. Applicable Scheduling, System Control, and Dispatch Service (SSCD) is required to schedule the movement of power through, out of, within, or into the Southwest Power Pool, Inc. (SPP) Balancing Authority Area and/or the Western Area Power Administration, Upper Great Plains West Balancing Authority Area (WAUW). Western Area Power Administration-Upper Great Plains Region’s (Western-UGP) annual revenue requirement for SSCD will be used by SPP to calculate the regional SPP Schedule 1 rate for SPP through and out transactions, and also to calculate the zonal SPP Schedule 1 rate for the Upper Missouri Zone (UMZ or Zone 19). This rate will also be charged by SPP for SPP Transmission Service provided within the Western Interconnection. Formula Rate Define: A = Operation & Maintenance for SSCD ($) B = Administrative and General Expense for SSCD ($) C = Depreciation for SSCD ($) D = Taxes Other than Income Taxes for Transmission ($) E = Allocation of General Plant for SSCD ($) F = Cost of Capital for SSCD ($) G = SSCD Revenue from non-Transmission facilities ($) H = Prior Period True-up ($) SSCD Annual Revenue Requirement = A + B + C + D + E + F—G + H E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices A recalculated annual revenue requirement will go into effect every January 1 based on the above formula and updated financial data. WesternUGP will annually notify SPP and make data and information available to interested parties for review and comment related to the recalculated annual revenue requirement on or shortly after September 1 of the preceding year. Data used and the charges resulting from using this formula will be posted on the applicable SPP Web site and/or SPP Open Access Same-Time Information System. Rate Schedule WAUW–AS3 October 1, 2015 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION UPPER GREAT PLAINS REGION PICK–SLOAN MISSOURI BASIN PROGRAM—EASTERN DIVISION REGULATION AND FREQUENCY RESPONSE SERVICE—WAUW tkelley on DSK3SPTVN1PROD with NOTICES Effective On the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP, and shall remain in effect through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. Applicable This Rate Schedule applies to the Western Area Power Administration, Upper Great Plains West Balancing Authority Area (WAUW). Regulation and Frequency Response Service (Regulation) is necessary to provide for the continuous balancing of resources, generation, and interchange with load and for maintaining scheduled interconnection frequency at 60 cycles per second (60 Hz). Regulation is accomplished by committing on-line generation whose output is raised or lowered, predominantly through the use of automatic generating control equipment, as necessary, to follow the moment-by-moment changes in load. The obligation to maintain this balance between resources and load lies with the Western Area Power Administration-Upper Great Plains Region (Western-UGP) as the WAUW operator. The SPP Transmission Customer must either purchase this service from SPP or make alternative VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 comparable arrangements pursuant to the SPP Tariff to satisfy its Regulation obligation. Western-UGP’s annual revenue requirement for Regulation (outlined below) will be used by SPP to calculate the WAUW charges for Regulation. Western-UGP 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. When Western-UGP purchases power resources to provide Regulation to intermittent resources serving load within Western-UGP’s WAUW, costs for these regulation resources will become part of Western’s Regulation revenue requirement, which will be billed by SPP, as the Transmission Provider, to a SPP Transmission Customer along with the associated transmission service provided by SPP under the SPP Tariff. However, Western-UGP will not regulate for the difference between the output of an intermittent resource located within Western-UGP’s WAUW and a delivery schedule from that generator serving load located outside of Western-UGP’s WAUW. Intermittent resources serving load outside WesternUGP’s WAUW will be required to be pseudo-tied or dynamically scheduled to another Balancing Authority Area. An intermittent resource, for the limited purpose of this Rate Schedule, is an electric generator that is not dispatchable and cannot store its fuel source and, therefore, cannot respond to changes in demand or respond to transmission security constraints. Formula Rate Define: A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%) B = Corps Generation Net Plant Costs ($) C = Plant Capacity (kW) D = Capacity Used for Regulation (kW-year) E = Capacity Purchases for Regulation ($) F = Prior Period True-up Regulation Annual Revenue Requirement = (A * B/C) * D + E + F A recalculated revenue requirement will go into effect every January 1 based on the above formula and updated financial data. Western-UGP will annually notify SPP and make data and information available to interested parties for review and comment related to the recalculated annual revenue requirement on or shortly after September 1 of the preceding year. Data used and the charges resulting from using this formula will be posted on the applicable SPP Web site and/or SPP Open Access Same-Time Information System. PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 44347 Rate Schedule WAUW–AS4 October 1, 2015 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION UPPER GREAT PLAINS REGION PICK–SLOAN MISSOURI BASIN PROGRAM—EASTERN DIVISION ENERGY IMBALANCE SERVICE— WAUW Effective On the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP, and shall remain in effect through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. Applicable This Rate Schedule applies to the Western Area Power Administration, Upper Great Plains West Balancing Authority Area (WAUW). Energy Imbalance Service is provided when a difference occurs between scheduled and actual delivery of energy to a load located within Western Area Power Administration-Upper Great Plains Region’s (Western-UGP) WAUW over a single hour. Given the Southwest Power Pool, Inc. (SPP) Integrated Marketplace will not be extended into the Western Interconnection, Western-UGP, as the Balancing Authority, will offer to provide Energy Imbalance Service in the WAUW, if it is capable of doing so, from its own resources or from resources available to it, at the request of SPP, as the Transmission Provider, when transmission service is provided by SPP and used to serve load within the WAUW. Energy Imbalance Service in the WAUW will be billed by SPP to the SPP Transmission Customer along with the associated transmission service provided by SPP. The SPP Transmission Customer must either purchase this service from SPP, or make alternative comparable arrangements pursuant to the SPP Tariff to satisfy its Energy Imbalance Service obligation. The SPP Transmission Customer will incur a charge for either hourly energy imbalances under this 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. E:\FR\FM\27JYN1.SGM 27JYN1 44348 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices tkelley on DSK3SPTVN1PROD with NOTICES Formula Rate Rate Schedule WAUW–AS5 For 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 the SPP 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. 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 energy imbalance that occurs as a result of the SPP Transmission Customer’s scheduled transaction(s) will be settled financially, at the end of each month. When energy taken in a schedule hour is greater than the energy scheduled, the charge is 110 percent of incremental cost. When energy taken is less than the scheduled amount, the credit is 90 percent of the incremental cost. 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 SPP Transmission Customer’s scheduled transaction(s) will be settled at 125 percent of Western-UGP’s incremental cost when energy taken in a schedule hour is greater than the energy scheduled or 75 percent of Western-UGP’s incremental cost when energy taken by a SPP 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 the applicable SPP Web site and/or SPP’s Open Access Same-Time Information System (OASIS) at least 30 days before 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. The pricing and charge for deviations in the above deviation bandwidths is as specified above. Data used and the charges resulting from using this formula will be posted on the applicable SPP Web site and/or SPP OASIS. October 1, 2015 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION UPPER GREAT PLAINS REGION PICK–SLOAN MISSOURI BASIN PROGRAM—EASTERN DIVISION OPERATING RESERVE—SPINNING RESERVE SERVICE—WAUW Effective On the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP, and shall remain in effect through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. Applicable This Rate Schedule applies to the Western Area Power Administration, Upper Great Plains West Balancing Authority Area (WAUW). Operating Reserve-Spinning Reserve Service (Spinning Reserves) is needed to serve load immediately in the event of a system contingency. Spinning Reserves may be provided by generating units that are on-line and loaded at less than maximum output. Given the Southwest Power Pool, Inc. (SPP) Integrated Marketplace will not be extended into the Western Interconnection, Western Area Power Administration-Upper Great Plains Region (Western-UGP), as the Balancing Authority, will offer to provide Spinning Reserves, if available, at the request of SPP as the Transmission Provider in the WAUW. Operating Reserve-Spinning Reserve Service in the WAUW will be billed by SPP to the SPP Transmission Customer along with the associated transmission service provided by SPP. The SPP Transmission Customer must either purchase this service from SPP or make alternative comparable arrangements pursuant to the SPP Tariff to satisfy its Spinning Reserves obligation. WesternUGP’s annual revenue requirement for Spinning Reserves (outlined below) will be utilized by SPP to calculate the WAUW charges for Spinning Reserves. Formula Rate Define: A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%) B = Corps Generation Net Plant Costs ($) C = Plant Capacity (kW) VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 D = Maximum Load in the WAUW (kW) E = Maximum Generation in the WAUW (kW) F = Reserve Sharing Program Requirement based upon Load (%)—See Note 1 G = Reserve Sharing Program Requirement based upon Generation (%)—See Note 2 H = Prior Period True-up Note 1: Currently 3% in the Northwest Power Pool (NWPP) Reserve Sharing Program Note 2: Currently 3% in the NWPP Reserve Sharing Program Spinning Reserves Annual Revenue Requirement = (A * B/C) * ((D * F) + (E * G)) + H A recalculated revenue requirement will go into effect every January 1 based on the above formula and updated financial, load/generation, and Reserve Sharing Program requirements data. Western-UGP will annually notify SPP and make data and information available to interested parties for review and comment related to the recalculated annual revenue requirement on or shortly after September 1 of the preceding year. Data used and the charges resulting from using this formula will be posted on the applicable SPP Web site and/or SPP Open Access Same-Time Information System (OASIS). If resources are not available from a Western-UGP resource, Western-UGP, at the request of SPP as the Transmission Provider, will offer to purchase the Spinning Reserves and pass through the costs, plus an amount for administration, to SPP for the SPP Transmission Customer. In the event that Spinning Reserves are called upon for emergency use, the SPP Transmission Customer will be assessed a charge for energy used at the prevailing market energy rate in the WAUW. The prevailing market energy rate will be based upon a representative hourly energy index or combination of indexes. The index to be used will be posted on the applicable SPP Web site and/or SPP’s OASIS at least 30 days before use for determining the prevailing market energy rate 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. The SPP Transmission Customer would be responsible for providing transmission service to get the Spinning Reserves to its destination. E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices 44349 Rate Schedule WAUW–AS6 Formula Rate Rate Schedule WAUW–AS7 October 1, 2015 Define: October 1, 2015 UNITED STATES DEPARTMENT OF ENERGY A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%) B = Corps Generation Net Plant Costs ($) C = Plant Capacity (kW) D = Maximum Load in the WAUW (kW) E = Maximum Generation in the WAUW (kW) F = Reserve Sharing Program Requirement based upon Load (%)—See Note 1 G = Reserve Sharing Program Requirement based upon Generation (%)—See Note 2 H = Prior Period True-up Note 1: Currently 3% in the Northwest Power Pool (NWPP) Reserve Sharing Program Note 2: Currently 3% in the NWPP Reserve Sharing Program Supplemental Reserves Annual Revenue Requirement = (A * B/C) * ((D * F) + (E * G)) + H UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION UPPER GREAT PLAINS REGION PICK–SLOAN MISSOURI BASIN PROGRAM—EASTERN DIVISION OPERATING RESERVE— SUPPLEMENTAL RESERVE SERVICE—WAUW Effective On the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP, and shall remain in effect through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. tkelley on DSK3SPTVN1PROD with NOTICES Applicable This Rate Schedule applies to the Western Area Power Administration, Upper Great Plains West Balancing Authority Area (WAUW). Operating Reserve-Supplemental Reserve Service (Supplemental Reserves) is needed to serve load in the event of a system contingency: however, it is not available immediately to serve load but rather within a short period of time. Supplemental Reserves may be provided by generating units that are on-line but unloaded, by quick-start generation, or by interruptible load. Given the Southwest Power Pool, Inc. (SPP) Integrated Marketplace will not be extended into the Western Interconnection, Western Area Power Administration-Upper Great Plains Region (Western-UGP), as the Balancing Authority, will offer to provide Supplemental Reserves, if available, at the request of SPP as the Transmission Provider, in the WAUW. Operating Reserve-Supplemental Reserve Service in the WAUW will be billed by SPP to the SPP Transmission Customer along with the associated transmission service provided by SPP. The SPP Transmission Customer must either purchase this service from SPP or make alternative comparable arrangements pursuant to the SPP Tariff to satisfy its Supplemental Reserves obligation. Western-UGP’s annual revenue requirement for Supplemental Reserves (outlined below) will be utilized by SPP to calculate the WAUW charges for Supplemental Reserves. VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 A recalculated revenue requirement will go into effect every January 1 based on the above formula and updated financial, load/generation, and Reserve Sharing Program requirements data. Western-UGP will annually notify SPP and make data and information available to interested parties for review and comment related to the recalculated annual revenue requirement on or shortly after September 1 of the preceding year. Data used and the charges resulting from using this formula will be posted on the applicable SPP Web site and/or SPP Open Access Same-Time Information System (OASIS). If resources are not available from a Western-UGP resource, Western-UGP, at the request of SPP as the Transmission Provider, will offer to purchase the Supplemental Reserves and pass through the costs, plus an amount for administration, to SPP for the SPP Transmission Customer. In the event Supplemental Reserves are called upon for emergency use, the SPP Transmission Customer will be assessed a charge for energy used at the prevailing market energy rate in the WAUW. The prevailing market energy rate will be based upon a representative hourly energy index or combination of indexes. The index to be used will be posted on the applicable SPP Web site and/or SPP’s OASIS at least 30 days before use for determining the prevailing market energy rate 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. The SPP Transmission Customer would be responsible for providing transmission service to get the Supplemental Reserves to its destination. PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 WESTERN AREA POWER ADMINISTRATION UPPER GREAT PLAINS REGION PICK–SLOAN MISSOURI BASIN PROGRAM—EASTERN DIVISION GENERATOR IMBALANCE SERVICE— WAUW Effective On the first day of the first full billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-UGP facilities to SPP, and shall remain in effect through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier. Notification of the transfer of functional control and the effective date of the formula rates will be published in the Federal Register. Applicable This Rate Schedule applies to the Western Area Power Administration, Upper Great Plains West Balancing Authority Area (WAUW). Generator Imbalance Service is provided when a difference occurs between the output of a generator located within Western Area Power Administration-Upper Great Plains Region’s (Western-UGP) 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. Western-UGP, as the Balancing Authority, will offer to provide this service, if it is capable of doing so, from its own resources or from resources available to it, at the request of the Southwest Power Pool, Inc. (SPP) as the Transmission Provider, when transmission service is used to deliver energy from a generator located within the WAUW. Generator Imbalance Service in the WAUW will be billed by SPP to the SPP Transmission Customer along with the associated transmission service provided by SPP. The SPP Transmission Customer must either purchase this service from SPP or make alternative comparable arrangements pursuant to the SPP Tariff, to satisfy its Generator Imbalance Service obligation. The SPP Transmission Customer will incur a charge 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. E:\FR\FM\27JYN1.SGM 27JYN1 44350 Federal Register / Vol. 80, No. 143 / Monday, July 27, 2015 / Notices tkelley on DSK3SPTVN1PROD with NOTICES Western-UGP 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-UGP 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, WesternUGP will not regulate for the difference between the output of an intermittent resource located within the WAUW and a delivery schedule from that generator serving load located outside of the WAUW. Intermittent resources serving load outside Western-UGP’s WAUW will be required to be pseudo-tied or dynamically scheduled to another Balancing Authority Area. An intermittent resource, for the limited purpose of this Rate Schedule, is an electric generator that is not dispatchable and cannot store its fuel source and, therefore, cannot respond to changes in demand or respond to transmission security constraints. Formula Rate For 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 the SPP 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. 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 the SPP 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. 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 SPP 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 VerDate Sep<11>2014 18:58 Jul 24, 2015 Jkt 235001 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 responding to directives by the Transmission Provider, a Balancing Authority, 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 upon a representative hourly energy index or combination of indexes. The index to be used will be posted on the applicable SPP Web site and/or SPP’s Open Access Same-Time Information System (OASIS) at least 30 days before 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. The pricing and charge for deviations in the deviation bandwidths is as specified above. Data used and the charges resulting from using this formula will be posted on the applicable SPP Web site and/or SPP OASIS. [FR Doc. 2015–18240 Filed 7–24–15; 8:45 am] BILLING CODE 6450–01–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OW–2004–0019; FRL–9931–21– OW] Request for Scientific Views: Draft Recommended Aquatic Life Ambient Water Quality Chronic Criterion for Selenium—Freshwater 2015 Environmental Protection Agency (EPA). ACTION: Notice of availability. AGENCY: The Environmental Protection Agency (EPA) is opening the comment period for the Agency’s draft recommended aquatic life water quality chronic criterion for selenium in freshwater. EPA released a previous draft entitled ‘‘External Peer Review Draft Aquatic Life Ambient Water Quality Criterion for Selenium— Freshwater, 2014’’ for public comment on May 14, 2014. EPA received SUMMARY: PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 scientific views from the public and stakeholders, and convened a contractor-led expert external peer review. EPA considered the results from the expert peer review and scientific views and comments from the public and stakeholders to develop the current draft document, which is now available for comment. Following closure of this public comment period, EPA will consider scientific views from the public on this draft document as well as any new data or information received. EPA will then publish Federal Register notice(s) announcing the availability of the final selenium criterion. DATES: Comments must be received on or before September 25, 2015. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–HQ– OW–2004–0019, by one of the following methods: • www.regulations.gov: Follow the on-line instructions for submitting comments. • Email: ow-docket@epa.gov. Attention Docket No. EPA–HQ–OW– 2004–0019. • Fax: 202–566–1140. • Mail: EPA Water Docket, Environmental Protection Agency, Mailcode 2822–IT 1200 Pennsylvania Ave. NW., Washington, DC 20640, Attention Docket No. EPA–HQ–OW– 2004–0019. Please include a total of two copies (including references). • Hand Delivery: EPA Water Docket, EPA Docket Center, William Jefferson Clinton West Building, Room 3334, 1301 Constitution Avenue NW., Washington, DC 20004, Docket No. EPA–HQ–OW–2004–0019. Such deliveries are only accepted during the Docket’s normal hours of operation, and special arrangements should be made for deliveries of boxed information. Instructions: Direct your comments to Docket ID No. [EPA–HQ–2004–0019]. EPA’s policy is that all comments received will be included in the public docket without change and may be made available online at www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through www.regulations.gov or ow-docket@epa.gov. The www.regulations.gov Web site is an ‘‘anonymous access’’ system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email comment directly E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

[Federal Register Volume 80, Number 143 (Monday, July 27, 2015)]
[Notices]
[Pages 44339-44350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18240]


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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 Final Transmission and Ancillary Services Formula 
Rates.

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

SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate 
Order No. WAPA-170 and Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, 
WAUW-AS4, WAUW-AS5, WAUW-AS6 and WAUW-AS7. Through this notice, the 
Western Area Power Administration (Western), places formula 
transmission and ancillary services rates for Western's Pick-Sloan 
Missouri Basin Program--Eastern Division (P-SMBP--ED) into effect on an 
interim basis. The provisional rates will be in effect until the 
Federal Energy Regulatory Commission (FERC) confirms, approves, and 
places them into effect on a final basis, or until they are superseded. 
The provisional formula rates will provide sufficient revenue to pay 
all associated annual costs, including interest expense, and repay 
required investment within the allowable periods.

DATES: Formula rates for Transmission and Ancillary Services under Rate 
Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, WAUW-AS4, WAUW-AS5, WAUW-AS6 
and WAUW-AS7 are effective on the first day of the first full billing 
period beginning on or after October 1, 2015, upon transfer of 
functional control of eligible Western-Upper Great Plains Region 
(Western-UGP) transmission facilities to Southwest Power Pool, Inc. 
(SPP) and will remain in effect until September 30, 2020, pending 
approval by FERC on a final basis or until superseded. Notification of 
the transfer of functional control and the effective date of the 
formula rates will be published in the Federal Register.

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: Western published a Federal Register Notice 
on November 3, 2014, (79 FR 65205) announcing the proposed formula 
rates for transmission service, initiating a public consultation and 
comment period, and setting forth the dates and locations of public 
information and public comment forums. Western held a public 
information forum in Omaha, Nebraska on November 19, 2014, and a public 
information forum in Fargo, North Dakota, on November 20, 2014. Western 
explained the proposed formula rates, answered questions, and provided 
Rate Brochures and presentation handouts. Western held a public comment 
forum in Omaha, Nebraska, on December 17, 2014, and a public comment 
forum in Fargo, North Dakota, on December 18, 2014. These forums 
provided the public with opportunity to comment for the record.
    On December 19, 2014, Western notified all P-SMBP--ED customers and 
interested parties of an updated Rate Brochure that was available on 
the Web site at www.wapa.gov/ugp/rates/default.htm. This Web site also 
contained information about this formula rate adjustment process.
    Western followed the Procedures for Public Participation in Power 
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, as 
described above, in developing these formula rates. No individuals 
commented at either of the public comment forums, and Western received 
no comments during the consultation and comment period.
    Western-UGP has signed a Membership Agreement with SPP. Upon 
achieving final FERC approval of membership within SPP, Western will 
transfer functional control of Western-UGP's P-SMBP--ED eligible 
transmission facilities located in the Upper Missouri Zone (UMZ or Zone 
19) to SPP. Western-UGP will then merge its Western Area Power 
Administration, Upper Great Plains East Balancing Authority Area (WAUE) 
in the Eastern Interconnection into SPP's Balancing Authority Area and 
place its transmission system located in the Eastern Interconnection 
into SPP's Integrated Marketplace. Western-UGP will retain operation of 
its Western Area Power Administration, Upper Great Plains West 
Balancing Authority Area (WAUW) in the Western Interconnection as the 
Balancing Authority, and will not place its transmission system located 
in the Western Interconnection into SPP's Integrated Marketplace. Even 
though SPP's Integrated Marketplace will not extend into the Western 
Interconnection, Western-UGP's eligible transmission facilities in the 
Western Interconnection will be included under SPP's Tariff to allow 
SPP to provide transmission service over all of Western-UGP's eligible 
transmission facilities in the UMZ regardless of whether they are 
located in the Eastern or Western Interconnection. The UMZ is a single 
SPP rate zone that includes Western-UGP's transmission facilities 
located in the Eastern and Western Interconnections. Therefore, one 
formula rate schedule WAUGP-ATRR will calculate the Annual Transmission 
Revenue Requirement (ATRR) for all of Western-UGP's eligible 
transmission facilities that are transferred to the functional control 
of SPP and used by SPP to provide transmission service under the SPP 
Tariff. For 2015, the Western-UGP estimated ATRR is $123,816,622 based 
on facilities that Western-UGP has proposed to be included per 
Attachment AI of SPP's

[[Page 44340]]

Tariff and feedback from SPP regarding Attachment AI qualifying 
criteria. The list of Western-UGP facilities proposed for inclusion is 
available on the Web site at www.wapa.gov/ugp/rates/default.htm.
    Western-UGP has also developed a formula rate schedule WAUGP-AS1 
for Scheduling, System Control, and Dispatch Service (SSCD), which will 
include Western-UGP's costs associated with providing this service in 
the UMZ, and formula rate schedules to calculate charges for ancillary 
services associated with WAUW. These ancillary services formula rate 
schedules are necessary because the Western-UGP transmission facilities 
in WAUW are not included within SPP's Integrated Marketplace, and SPP's 
standard market-based ancillary services will not be available. As a 
result, when SPP provides transmission service in the WAUW, the 
associated ancillary services will need to be provided by Western-UGP 
as the Balancing Authority, if it is capable of doing so. These 
ancillary service 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 provisional transmission and ancillary service rate schedules 
contain formula-based rates that will be recalculated annually and 
submitted to SPP to provide and bill for services under the SPP Tariff. 
The formulas in these rate schedules use estimates for the upcoming 
year to calculate revenue requirements and have a true-up to actual 
costs in a subsequent year.
    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 Department of Energy procedures 
for public participation in power rate adjustments (10 CFR part 903) 
were published on September 18, 1985.
    Under Delegation Order Nos. 00-037.00A and 00-001.00E, and in 
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm, 
approve, and place Rate Order No. WAPA-170 and the proposed formula 
rates for transmission and ancillary services into effect on an interim 
basis. The new Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, WAUW-
AS4, WAUW-AS5, WAUW-AS6 and WAUW-AS7 will be submitted promptly to FERC 
for confirmation and approval on a final basis.

    Dated: July 17, 2015.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY

DEPUTY SECRETARY

    In the matter of: Western Area Power Administration, Rate 
Adjustment for the Pick-Sloan, Missouri Basin Program--Eastern Division
Rate Order No. WAPA-170

ORDER CONFIRMING, APPROVING, AND PLACING THE PICK-SLOAN MISSOURI BASIN 
PROGRAM--EASTERN DIVISION TRANSMISSION AND ANCILLARY SERVICES FORMULA 
RATES INTO EFFECT ON AN INTERIM BASIS

    These transmission and ancillary services formula rates are 
established in accordance with section 302 of the Department of Energy 
(DOE) Organization Act (42 U.S.C. 7152). This Act transferred to and 
vested in the Secretary of Energy the power marketing functions of the 
Secretary of the Department of the Interior and the Bureau of 
Reclamation under 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 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 the Federal Energy Regulatory Commission 
(FERC). Existing DOE procedures for public participation in power rate 
adjustments (10 CFR part 903) were published on September 18, 1985.

Acronyms and Definitions

    As used in this Rate Order, the following acronyms and definitions 
apply:

$/MW-year: Annual charge for capacity (i.e., $ per megawatt (MW) per 
year).
A&GE: Administrative and General Expense.
ATRR: Annual Transmission Revenue Requirement.
Balancing Authority (BA): The responsible entity that integrates 
resource plans ahead of time, maintains load-interchange-generation 
balance within a designated area, and supports interconnection 
frequency in real-time.
Balancing Authority Area: An electric system or systems, bounded by 
interconnection metering and telemetry, capable of controlling 
generation to maintain its interchange schedule with other Balancing 
Authorities and contributing to frequency regulation of the 
Interconnection.
Basin Electric: Basin Electric Power Cooperative.
Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment, expressed in kilowatts 
(kW).
Corps: U.S. Army Corps of Engineers.
DOE: United States Department of Energy.
Eastern Interconnection: A major alternating-current electrical grid 
in North America. The Eastern Interconnection reaches from Central 
Canada eastward to the Atlantic coast (excluding Quebec), south to 
Florida, and back west to the foot of the Rockies (excluding most of 
Texas).
Energy: Power produced or delivered over a period of time. Measured 
in terms of the work capacity over a period of time. It is expressed 
in kilowatt hours.
Energy Imbalance Service: A service that provides energy correction 
for any hourly mismatch between a Southwest Power Pool Transmission 
Customer's energy supply and the demand served.
FERC: Federal Energy Regulatory Commission.
FRN: Federal Register notice.
Generator Imbalance Service: A service that provides energy 
correction for any hourly mismatch between generator output and a 
delivery schedule from that generator to another Balancing Authority 
Area or to a load within the same Balancing Authority Area.
Heartland: Heartland Consumers Power District.
Integrated System (IS): Transmission system combining assets of 
Western-UGP, Basin Electric, and Heartland prior to Western-UGP's 
integration into SPP.
Intermittent Resource: An electric generator that is not 
dispatchable and cannot store its fuel source and, therefore, cannot 
respond to changes in demand or respond to transmission security 
restraints.
Kilowatt (kW): Electrical unit of capacity that equals 1,000 watts.
Kilowatt hour (kWh): Electrical unit of energy that equals 1,000 
watts in 1 hour.
Load: The amount of electric power or energy delivered or required 
at any specified point(s) on a system.
Megawatt (MW): The electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.
NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321-
4347).
Open Access Same-Time Information System (OASIS): An electronic 
posting system that

[[Page 44341]]

a service provider maintains for transmission access data that 
allows all customers to view information simultaneously.
O&M: Operation and Maintenance.
P-SMBP: Pick-Sloan Missouri Basin Program.
P-SMBP ED: Pick-Sloan Missouri Basin Program--Eastern Division.
Provisional Rate: A rate that has been confirmed, approved, and 
placed into effect on an interim basis by the Deputy Secretary of 
Energy.
Rate Brochure: A document prepared for public distribution 
explaining the rationale and background for the rate proposal 
contained in this rate order.
Regulation and Frequency Response Service: A service that provides 
for following the moment-to-moment variations in the demand or 
supply in a Balancing Authority Area and maintaining scheduled 
interconnection frequency.
Reserve Services: Spinning Reserve Service and Supplemental Reserve 
Service.
Revenue Requirement: The revenue required to recover annual expenses 
(such as O&M, purchase power, transmission service expenses, 
interest expense, and deferred expenses) and repay Federal 
investments, and other assigned costs.
Schedule: An agreed-upon transaction size (megawatts), beginning and 
ending ramp times and rate, and type of service required for 
delivery and receipt of power between the contracting parties and 
the Balancing Authority(ies) involved in the transaction.
Scheduling, System Control and Dispatch Service: A service that 
provides for (a) scheduling, (b) confirming and implementing an 
interchange schedule with other balancing authorities, including 
intermediary balancing authorities providing transmission service, 
and (c) ensuring operational security during the interchange 
transaction.
Southwest Power Pool, Inc. (SPP): A Regional Transmission 
Organization.
SPP's Integrated Marketplace (Integrated Marketplace): The SPP 
Energy and Operating Reserve Markets and the Transmission Congestion 
Rights Markets.
Spinning Reserve Service: Generation capacity needed to serve load 
immediately in the event of a system contingency. Spinning Reserve 
Service may be provided by generating units that are on-line and 
loaded at less than maximum output.
Supplemental Reserve Service: Generation capacity needed to serve 
load in the event of a system contingency; however, it is not 
available immediately to serve load but rather within a short period 
of time. Supplemental Reserve Service may be provided by generation 
units that are on-line but unloaded, by quick start generation or by 
interruptible load.
System: An interconnected combination of generation, transmission 
and/or distribution components comprising an electric utility, 
independent power producer(s) (IPP), or group of utilities and 
IPP(s).
SPP Tariff: Southwest Power Pool, Open Access Transmission Tariff, 
approved by FERC.
SPP Transmission Customer: Any eligible customer (or its designated 
agent) that receives transmission service under the SPP Tariff.
Transmission Provider: Any utility that owns, operates, or controls 
facilities used to transmit electric energy in interstate commerce. 
SPP is the Transmission Provider under the SPP Tariff.
Transmission System: The facilities owned, controlled, or operated 
by the transmission owner or Transmission Provider that are used by 
the Transmission Provider to provide transmission service.
Upper Missouri Zone (UMZ): Multi-owner zone in SPP in which Western-
UGP will participate as a Transmission Owner; also defined as Zone 
19 under the SPP Tariff. The UMZ includes transmission facilities 
located in both the Eastern and Western Interconnections.
WAUE: Western Area Power Administration, Upper Great Plains East 
Balancing Authority Area. WAUE is located in the Eastern 
Interconnection, and will cease to exist when it is merged into the 
SPP Balancing Authority Area.
WAUW: Western Area Power Administration, Upper Great Plains West 
Balancing Authority Area. WAUW is located in the Western 
Interconnection.
Watertown Operations Office: Western Area Power Administration, 
Upper Great Plains Region, Operations Office, 1330 41st Street SE., 
Watertown, South Dakota.
Western: United States Department of Energy, Western Area Power 
Administration.
Western Interconnection: A major alternating current power grid in 
North America. The Western Interconnection stretches from Western 
Canada south to Baja California in Mexico, reaching eastward over 
the Rockies to the Great Plains. Western Interconnection is 
comprised of the states of Washington, Oregon, California, Idaho, 
Nevada, Utah, Arizona, Colorado, Wyoming, portions of Montana, South 
Dakota, Nebraska, New Mexico and Texas in the United States, the 
Provinces of British Columbia and Alberta in Canada, and a portion 
of the Comisi[oacute]n Federal de Electricidad's system in Baja 
California in Mexico.
Western-UGP: United States Department of Energy, Western Area Power 
Administration, Upper Great Plains Region. Western-UGP is the 
definition for Western's Upper Great Plains Region in the SPP 
Tariff.

Effective Date

    Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, WAUW-AS4, WAUW-AS5, 
WAUW-AS6, and WAUW-AS7 are effective on the first day of the first full 
billing period beginning on or after October 1, 2015, upon transfer of 
functional control of eligible Western-UGP facilities to SPP, and will 
remain in effect until September 30, 2020, pending approval by FERC on 
a final basis or until superseded. Notification of the transfer of 
functional control and the effective date of the formula rates will be 
published in the Federal Register.

Public Notice and Comment

    Western followed the Procedures for Public Participation in Power 
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these formula rates. The steps Western took to involve 
interested parties in the rate process were:
    1. A FRN was published on November 3, 2014, (79 FR 65205) 
announcing the proposed rates for transmission service, initiating a 
public consultation and comment period, and setting forth the dates and 
locations of public information and public comment forums.
    2. On November 3, 2014, Western notified all P-SMBP--ED customers 
and interested parties of the proposed rates and provided a copy of the 
published FRN.
    3. On November 19, 2014, Western held a public information forum in 
Omaha, Nebraska; and on November 20, 2014, Western held a public 
information forum in Fargo, North Dakota. Western explained the 
proposed rates, answered questions, and provided Rate Brochures and 
presentation handouts.
    4. On December 17, 2014, Western held a public comment forum in 
Omaha, Nebraska; and on December 18, 2014, Western held a public 
comment forum in Fargo, North Dakota. This provided the public with 
opportunity to comment for the record. No individuals commented at 
either of these forums.
    5. On December 19, 2014, Western notified all P-SMBP--ED customers 
and interested parties of an updated Rate Brochure that was available 
on the Web site at www.wapa.gov/ugp/rates/default.htm.
    6. Western did not receive any oral or written comments during the 
consultation and comment period.
    7. Western provided a Web site for information about this rate 
adjustment process. The Web site is located at www.wapa.gov/ugp/rates/default.htm.

Comments

    No oral or written comments were received during the consultation 
and comment period.

Project Description

    The initial stages of the Missouri River Basin Project were 
authorized by section 9 of the Flood Control Act of 1944 (58 Stat. 887, 
890, Pub. L. 78-534). It was later renamed the P-SMBP. The P-SMBP is a 
comprehensive program with the following authorized functions: Flood 
control, navigation improvement, irrigation, municipal and industrial 
water development, and hydroelectric production for the entire Missouri 
River

[[Page 44342]]

Basin. Multipurpose projects have been developed on the Missouri River 
and its tributaries in Colorado, Montana, Nebraska, North Dakota, South 
Dakota, and Wyoming.
    Western-UGP markets significant quantities of Federally-generated 
hydroelectric power from the P-SMBP--ED. This power is generated by 
eight power plants located in Montana, North Dakota, and South Dakota. 
Western-UGP owns and operates from its Watertown Operations Office an 
extensive system of high-voltage transmission facilities that Western-
UGP uses to market approximately 2,400 MW of capacity from Federal 
projects within the Missouri River Basin to customers located within 
the P-SMBP--ED. This marketing area includes Montana, east of the 
Continental Divide, all of North and South Dakota, eastern Nebraska, 
western Iowa, and western Minnesota.
    Historically, the Western-UGP transmission facilities in the P-
SMBP--ED have been integrated with transmission facilities of Basin 
Electric and Heartland to provide transmission services over the IS. 
The IS included 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 included transmission facilities located in both 
the Eastern and Western Interconnections separated by the Miles City 
direct current (DC) tie and the Fort Peck Power Plant substation. 
Western-UGP also has operated two Balancing Authority Areas within the 
IS--WAUW and WAUE--that were also separated by the Miles City DC tie 
and the Fort Peck Power Plant substation. Western-UGP's historic rate 
schedules for the IS consisted of separate rates for firm and non-firm 
transmission service and ancillary services rates for the transmission 
facilities in the P-SMBP--ED.
    On November 1, 2013, Western published a Notice of Recommendation 
to Pursue Regional Transmission Organization Membership (78 FR 65641). 
Subsequently, Western-UGP has signed a Membership Agreement with SPP. 
Upon achieving final FERC approval of membership within SPP, Western-
UGP will transfer functional control of all eligible Western-UGP P-
SMBP--ED facilities in the Eastern and Western Interconnections, which 
include nearly 100 substations and 7,800 miles of transmission lines, 
to SPP. Subsequently, P-SMBP--ED transmission and ancillary services 
will no longer be available on the IS under Western's Open Access 
Transmission Tariff, but instead will be available from SPP as the 
Transmission Provider under SPP's Tariff.

P-SMBP--ED Transmission and Ancillary Services Rate Study

    Existing IS 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 for a 5-year 
period beginning on January 1, 2010, and ending December 31, 2014. 
These rates were extended through December 31, 2016, under Rate Order 
No. WAPA-168. When Western-UGP transfers functional control of its 
eligible P-SMBP--ED facilities to SPP, 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.
    When Western-UGP transfers functional control of P-SMBP--ED 
eligible transmission facilities located in the Upper Missouri Zone 
(UMZ or Zone 19) to SPP, Western-UGP will merge its WAUE in the Eastern 
Interconnection into SPP's Balancing Authority Area and place its 
transmission system located in the Eastern Interconnection into SPP's 
Integrated Marketplace. Western-UGP will retain operation of its WAUW 
in the Western Interconnection as the Balancing Authority, and will not 
place its transmission system located in the Western Interconnection 
into SPP's Integrated Marketplace. Even though SPP's Integrated 
Marketplace will not extend into the Western Interconnection, Western-
UGP's eligible transmission facilities in the Western Interconnection 
will be included under SPP's Tariff to allow SPP to provide 
transmission service over all of Western-UGP's eligible transmission 
facilities in the UMZ regardless of whether they are located in the 
Eastern or Western Interconnection. The UMZ is a single SPP rate zone 
that includes Western-UGP's transmission facilities located in the 
Eastern and Western Interconnections. Therefore, one formula rate 
schedule, WAUGP-ATRR, will calculate the Annual Transmission Revenue 
Requirement (ATRR) for all of Western-UGP's eligible transmission 
facilities that are transferred to the functional control of SPP and 
used by SPP to calculate charges for transmission service under the SPP 
Tariff. Western-UGP will utilize a formula template to calculate its 
ATRR.
    Western-UGP has also developed formula rate schedule WAUGP-AS1 for 
Scheduling, System Control, and Dispatch Service (SSCD), which will 
include Western-UGP's costs associated with providing this service in 
the UMZ, and formula rate schedules to calculate charges for ancillary 
services associated with its WAUW. These ancillary services formula 
rate schedules are necessary because the Western-UGP transmission 
facilities in its WAUW are not included within SPP's Integrated 
Marketplace, and SPP's standard market-based ancillary services will 
not be available. Therefore, when SPP provides transmission service in 
the WAUW, the associated ancillary services will need to be provided by 
Western-UGP as the Balancing Authority. These ancillary service 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 provisional formula rates for use under SPP's Tariff include 
Transmission and Ancillary Service Rates as described in Rate Schedules 
WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, WAUW-AS4, WAUW-AS5, WAUW-AS6, and 
WAUW-AS7. These rates will be submitted to SPP as the Transmission 
Provider in order for SPP to bill SPP Transmission Customers for 
transmission and ancillary services that SPP provides over Western-
UGP's transmission facilities under the SPP Tariff. The costs under the 
formulas in these rate schedules will be recalculated annually and 
those utilizing estimates for the upcoming year to calculate revenue 
requirements will include a true-up to actual costs in a subsequent 
year. The annual revenue requirements include O&M expenses, A&GE, 
interest expense, and depreciation expense and are offset by 
appropriate estimated revenue credits. Annual audited financial data 
will be used to true-up the cost estimates and credit estimates used to 
project these forward-looking rates to the actual expenses and credits. 
Western-UGP will true-up the estimates it used in the calculation of 
its calendar year 2013, 2014, and 2015 IS rate charges that were in 
place prior to joining SPP when calculating these true-up rates. This 
IS true-up will only include Western-UGP's portion of the IS revenue 
requirement, and these provisional formula rates for use under the SPP 
Tariff will only include Western-UGP's IS true-up, if applicable. The 
IS true-up, if any, associated with the other IS owners' portion of the 
IS revenue requirement is outside the

[[Page 44343]]

scope of this rate process, and would be addressed by other IS owners.
    Western prepared Transmission and Ancillary Services rates studies 
to ensure that the formula rates are based on the cost of service of 
the Western-UGP eligible transmission facilities that will be 
transferred to the functional control of SPP and the associated 
operation of the WAUW. These studies included all applicable expenses 
and associated offsetting revenues.

Provisional Rates

    The revenue requirements for 2015 for the individual services are 
outlined in the following table.

                    Provisional Western-UGP Transmission and Ancillary Services Formula Rates
----------------------------------------------------------------------------------------------------------------
                                                                                         Provisional 2015 annual
                    Service                                 Rate schedule No.            revenue requirement \1\
----------------------------------------------------------------------------------------------------------------
Transmission...................................  WAUGP-ATRR............................         \2\ $123,816,622
Scheduling, System Control, and Dispatch.......  WAUGP-AS1.............................           \2\ 11,384,293
Regulation and Frequency Response..............  WAUW-AS3..............................                  294,308
Operating Reserves--Spinning and Supplemental    WAUW-AS5 and WAUW-AS6.................                  232,291
 Reserves.
Energy Imbalance...............................  WAUW-AS4..............................                      N/A
Generator Imbalance............................  WAUW-AS7..............................                      N/A
----------------------------------------------------------------------------------------------------------------
\1\ The new provisional formula rates and rate schedules will take effect on the first day of the first full
  billing period beginning on or after October 1, 2015, upon transfer of functional control of eligible Western-
  UGP facilities to SPP.
\2\ ATRR estimate based upon facilities that Western-UGP has proposed to be included per Attachment AI of SPP's
  Tariff and feedback from SPP regarding Attachment AI qualifying criteria. The list of Western-UGP facilities
  proposed for inclusion is available on the Web site at www.wapa.gov/ugp/rates/default.htm.

Certification of Rates

    Western's Administrator certified that the provisional formula 
rates for Transmission and Ancillary Services are the lowest possible 
rates consistent with sound business principles. The provisional 
formula rates were developed following administrative policies and 
applicable laws.

Transmission Rate Discussion

Formula Rate for Transmission Service

    Western-UGP will recover its transmission system related expenses 
and investments on a forward-looking basis by using projections to 
estimate transmission costs for the upcoming year, with a true-up in a 
subsequent year. For transmission service provided by SPP as the 
Transmission Provider under SPP's Tariff, Western-UGP will provide its 
ATRR to SPP for determination of charges. SPP will use zonal and 
regional load and other applicable information, including additional 
annual transmission revenue requirements from other transmission owners 
with transmission facilities in the multi-owner UMZ to determine 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, which consist of O&M, interest 
expense, 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.
    Data used in the annual recalculation of the costs under the 
formula for WAUGP-ATRR effective on January 1 each year will be made 
available to SPP and interested parties for review and comment on or 
shortly after September 1 each preceding year. Data used and the 
revenue requirement resulting from using these formulas will be posted 
on the applicable SPP Web site and/or SPP OASIS. Western-UGP will 
provide interested parties the opportunity to discuss and comment on 
the recalculated WAUGP-ATRR 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 WAUGP-ATRR. This 
will also provide interested parties the opportunity to comment before 
the costs are collected through the formula rate.

Formula Rate for Scheduling, System Control, and Dispatch Service

    Western-UGP will use a formula-based rate methodology to calculate 
its annual revenue requirement for SSCD on a forward-looking basis by 
using projections to estimate applicable transmission-related costs 
associated with SSCD 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. A single SSCD rate applies for Western-UGP's 
costs associated with providing SSCD in both the Eastern and Western 
Interconnections under the SPP Tariff. Western-UGP's annual revenue 
requirement for SSCD will be used by SPP to determine the regional SPP 
Schedule 1 rate for SPP through and out transactions, and also to 
determine the zonal SPP Schedule 1 rate for the UMZ. SSCD is required 
to schedule the movement of power through, out of, within, or into the 
SPP Balancing Authority Area and/or the WAUW. Therefore, Western's SSCD 
will also be charged by SPP for transmission service within the Western 
Interconnection. Western-UGP's annual revenue requirement for SSCD is 
derived by calculating Western-UGP's applicable transmission-related 
annual costs associated with SSCD service, including O&M, interest 
expense, A&GE, and depreciation.
    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 through a credit 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.

Formula Rate for Regulation and Frequency Response Service

    Western-UGP will use 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 as the BA will need to provide 
Regulation and Frequency Response Service in the WAUW, which will be 
billed by SPP, as the Transmission Provider, to a SPP Transmission 
Customer along with the associated transmission service provided by SPP 
under the SPP Tariff. Regulation and Frequency Response Service in the 
WAUW is provided primarily by Corps facilities. The Corps'

[[Page 44344]]

generation calculated fixed charge rate (in percent) is applied to the 
net plant investment of the Corps generation to derive 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 applied to the capacity of 
Corps generation reserved for Regulation and Frequency Response Service 
in the WAUW, producing the annual Corps generation cost for 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 
will be recovered under the SPP Tariff under Rate Schedule WAUW-AS3.
    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 through a credit 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.
    Western-UGP 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-UGP 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 WAUW to provide Regulation and Frequency Response Service to 
intermittent renewable generation resources serving load within the 
WAUW, costs for these regulation resources will become part of Western-
UGP's Regulation and Frequency Response Service. However, Western-UGP 
will not regulate for the difference between the output of an 
Intermittent Resource located within the WAUW and a delivery schedule 
from that generator serving load located outside of the WAUW. 
Intermittent Resources serving load outside the WAUW will be required 
to be pseudo-tied or dynamically scheduled to another Balancing 
Authority Area.

Formula 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 the WAUW over a single hour. Given the SPP Integrated 
Marketplace will not be extended into the Western Interconnection, 
Western-UGP as the BA will need to provide Energy Imbalance Service in 
the WAUW, which will be billed by SPP, as the Transmission Provider, to 
a SPP Transmission Customer along with the associated transmission 
service provided by SPP under the SPP Tariff. Western-UGP will offer 
this service, if it is capable of doing so, from its own resources or 
from resources available to it when transmission service is provided by 
SPP and used to serve load within the WAUW. The SPP Transmission 
Customer must either purchase this service from SPP or make alternative 
comparable arrangements pursuant to the SPP Tariff to satisfy its 
Energy Imbalance Service obligation. A SPP Transmission Customer may 
incur a charge 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.
    The rate for service within the WAUW will 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 the SPP 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 the SPP 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 SPP Transmission Customer in a schedule hour is greater than the 
energy scheduled or 90 percent of incremental cost when energy taken by 
a SPP 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 SPP 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 SPP Transmission Customer in a 
schedule 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 SPP Transmission Customer is less than the scheduled amount.
    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 the applicable SPP Web site and/or SPP's OASIS at 
least 30 days before 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.

Formula Rates for Operating Reserves Service--Spinning and Supplemental

    Given the SPP Integrated Marketplace will not be extended into the 
Western Interconnection, Western-UGP as the BA will need to provide 
Operating Reserve--Spinning Reserve Service and Operating Reserve--
Supplemental Reserve Service (together referred to as Reserve Services) 
in the WAUW, which will be billed by SPP, as the Transmission Provider, 
to a SPP Transmission Customer along with the associated transmission 
service provided by SPP under the SPP Tariff. Western-UGP will offer 
these services under the formula-based rate methodologies for Spinning 
Reserve Service and Supplemental Reserve Service and will use the 
reserve requirement of the reserve sharing program 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

[[Page 44345]]

derived by taking the annual Corps generation cost to provide this 
service and adding costs associated with the current reserve sharing 
program. Western-UGP's annual revenue requirement will be recovered 
under the SPP Tariff under Rate Schedules WAUW-AS5 and WAUW-AS6.
    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 through a credit 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.
    Western-UGP has no long-term reserves available beyond its own 
internal requirements. At SPP's request as the Transmission Provider, 
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 
SPP for the requesting SPP Transmission Customer. The SPP Transmission 
Customer is responsible to provide the transmission to deliver these 
reserves. In the event that Reserve Services are called upon for 
emergency use, the SPP Transmission Customer will be assessed a charge 
for energy used at the prevailing market energy rate in the WAUW. The 
prevailing market energy rate will be based on a representative hourly 
energy index or combination of indexes. The index to be used will be 
posted on the applicable SPP Web site and/or SPP's OASIS at least 30 
days prior to use for determining the prevailing market energy rate 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.

Formula Rate for Generator Imbalance Service

    Generator Imbalance Service is provided when a difference occurs 
between the output of a generator located within the WAUW and a 
delivery schedule from that generator to: (1) another Balancing 
Authority Area or (2) a load within the WAUW over a single hour. Given 
the SPP Integrated Marketplace will not be extended into the Western 
Interconnection, Western-UGP as the BA must provide Generator Imbalance 
Service in the WAUW, which will be billed by SPP, as the Transmission 
Provider, to a SPP Transmission Customer along with the associated 
transmission service provided by SPP under the SPP Tariff. Western-UGP 
will offer this service, if it is capable of doing so, from its own 
resources or from resources available to it, when SPP transmission 
service is used to deliver energy from a generator located within the 
WAUW. The SPP Transmission Customer must either purchase this service 
from SPP, or make alternative comparable arrangements pursuant to the 
SPP Tariff, to satisfy its Generator Imbalance Service obligation. A 
SPP Transmission Customer may incur a charge for either hourly 
generator imbalances under this Rate 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-UGP 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-UGP 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 
Resource located within the WAUW and a delivery schedule from that 
generator serving load located outside of the WAUW. Intermittent 
Resources serving load outside the WAUW will be required to be pseudo-
tied or dynamically scheduled to another Balancing Authority Area.
    The rate for service within the WAUW will 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 generator imbalance that occurs as a result of the SPP 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; (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 the SPP 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 SPP 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. 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 SPP as the Transmission Provider, a Balancing Authority, 
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 the applicable SPP Web site and/or SPP's OASIS at 
least 30 days before 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.

Availability of Information

    All documents related to this action are available for inspection 
and copying at the Upper Great Plains Regional Office, located at 2900 
4th Avenue North, Billings, Montana. These documents are also available 
on Western's Web site located at http://www.wapa.gov/ugp/rates.

RATEMAKING PROCEDURE REQUIREMENTS

Environmental Compliance

    In compliance with the National Environmental Policy Act 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 has 
determined that this action is

[[Page 44346]]

categorically excluded from preparing an environmental assessment or an 
environmental impact statement. A copy of the categorical exclusion 
determination is available on Western-UGP's Web site located at http://www.wapa.gov/ugp/Environment.

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.

Submission to the Federal Energy Regulatory Commission

    The formula rates herein confirmed, approved, and placed into 
effect on an interim basis, together with supporting documents, will be 
submitted to FERC for confirmation and final approval.

ORDER

    In view of the foregoing and under the authority delegated to me, I 
confirm and approve on an interim basis, effective on or after October 
1, 2015, upon transfer of functional control of eligible Western-UGP 
facilities to SPP, formula rates for Transmission and Ancillary 
Services under Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, WAUW-
AS4, WAUW-AS5, WAUW-AS6 and WAUW-AS7 for the Pick-Sloan Missouri Basin 
Program--Eastern Division Project of the Western Area Power 
Administration. Notification of the transfer of functional control and 
the effective date of the formula rates will be published in the 
Federal Register. The rate schedules shall remain in effect on an 
interim basis, pending the Federal Energy Regulatory Commission's 
confirmation and approval of the rate schedules or substitute rates on 
a final basis through September 30, 2020, or until the rate schedules 
are superseded.

Dated: July 17, 2015

Elizabeth Sherwood-Randall

Deputy Secretary of Energy
Rate Schedule WAUGP-ATRR
October 1, 2015

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

ANNUAL TRANSMISSION REVENUE REQUIREMENT FOR TRANSMISSION SERVICE

Effective

    On the first full day of the first full billing period beginning on 
or after October 1, 2015, upon transfer of functional control of 
eligible Western-UGP facilities to SPP, and shall remain in effect 
through September 30, 2020, or until superseded by another rate 
schedule, whichever occurs earlier. Notification of the transfer of 
functional control and the effective date of the formula rates will be 
published in the Federal Register.

Applicable

    Western Area Power Administration-Upper Great Plains Region's 
(Western-UGP) formula based Annual Transmission Revenue Requirement 
(ATRR) for its eligible transmission related facilities included under 
the Southwest Power Pool, Inc. (SPP) Tariff shall be calculated using 
the formula outlined below.

Formula Rate

Define:

A = Operation & Maintenance allocated to transmission ($)
B = Depreciation allocated to transmission ($)
C = Interest Expense allocated to transmission ($)
D = Revenue Credits ($)
E = Scheduling, System Control, and Dispatch costs ($)
F = Prior Period True-up ($)

ATRR = A + B + C-D-E + F

    Note: Western-UGP will identify any portion of the ATRR eligible 
for SPP Region-wide cost sharing pursuant to the SPP Tariff in its 
Rate Formula Template submitted under Attachment H of the SPP 
Tariff.

    A recalculated annual revenue requirement will go into effect every 
January 1 based on the above formula and updated financial data. 
Western-UGP will annually notify SPP and make data and information 
available to interested parties for review and comment related to the 
recalculated annual revenue requirement on or shortly after September 1 
of the preceding year. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP Web site and/or SPP 
Open Access Same-Time Information System.
Rate Schedule WAUGP-AS1
October 1, 2015

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE

Effective

    On the first day of the first full billing period beginning on or 
after October 1, 2015, upon transfer of functional control of eligible 
Western-UGP facilities to SPP, and shall remain in effect through 
September 30, 2020, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the transfer of functional 
control and the effective date of the formula rates will be published 
in the Federal Register.

Applicable

    Scheduling, System Control, and Dispatch Service (SSCD) is required 
to schedule the movement of power through, out of, within, or into the 
Southwest Power Pool, Inc. (SPP) Balancing Authority Area and/or the 
Western Area Power Administration, Upper Great Plains West Balancing 
Authority Area (WAUW). Western Area Power Administration-Upper Great 
Plains Region's (Western-UGP) annual revenue requirement for SSCD will 
be used 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 Upper Missouri Zone (UMZ or Zone 19). This rate 
will also be charged by SPP for SPP Transmission Service provided 
within the Western Interconnection.

Formula Rate

Define:

A = Operation & Maintenance for SSCD ($)
B = Administrative and General Expense for SSCD ($)
C = Depreciation for SSCD ($)
D = Taxes Other than Income Taxes for Transmission ($)
E = Allocation of General Plant for SSCD ($)
F = Cost of Capital for SSCD ($)
G = SSCD Revenue from non-Transmission facilities ($)
H = Prior Period True-up ($)

SSCD Annual Revenue Requirement = A + B + C + D + E + F--G + H


[[Page 44347]]


    A recalculated annual revenue requirement will go into effect every 
January 1 based on the above formula and updated financial data. 
Western-UGP will annually notify SPP and make data and information 
available to interested parties for review and comment related to the 
recalculated annual revenue requirement on or shortly after September 1 
of the preceding year. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP Web site and/or SPP 
Open Access Same-Time Information System.
Rate Schedule WAUW-AS3
October 1, 2015

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

REGULATION AND FREQUENCY RESPONSE SERVICE--WAUW

Effective

    On the first day of the first full billing period beginning on or 
after October 1, 2015, upon transfer of functional control of eligible 
Western-UGP facilities to SPP, and shall remain in effect through 
September 30, 2020, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the transfer of functional 
control and the effective date of the formula rates will be published 
in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Regulation and Frequency Response Service (Regulation) is 
necessary to provide for the continuous balancing of resources, 
generation, and interchange with load and for maintaining scheduled 
interconnection frequency at 60 cycles per second (60 Hz). Regulation 
is accomplished by committing on-line generation whose output is raised 
or lowered, predominantly through the use of automatic generating 
control equipment, as necessary, to follow the moment-by-moment changes 
in load. The obligation to maintain this balance between resources and 
load lies with the Western Area Power Administration-Upper Great Plains 
Region (Western-UGP) as the WAUW operator. The SPP Transmission 
Customer must either purchase this service from SPP or make alternative 
comparable arrangements pursuant to the SPP Tariff to satisfy its 
Regulation obligation. Western-UGP's annual revenue requirement for 
Regulation (outlined below) will be used by SPP to calculate the WAUW 
charges for Regulation.
    Western-UGP 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. When Western-UGP purchases power resources to provide 
Regulation to intermittent resources serving load within Western-UGP's 
WAUW, costs for these regulation resources will become part of 
Western's Regulation revenue requirement, which will be billed by SPP, 
as the Transmission Provider, to a SPP Transmission Customer along with 
the associated transmission service provided by SPP under the SPP 
Tariff. However, Western-UGP will not regulate for the difference 
between the output of an intermittent resource located within Western-
UGP's WAUW and a delivery schedule from that generator serving load 
located outside of Western-UGP's WAUW. Intermittent resources serving 
load outside Western-UGP's WAUW will be required to be pseudo-tied or 
dynamically scheduled to another Balancing Authority Area.
    An intermittent resource, for the limited purpose of this Rate 
Schedule, is an electric generator that is not dispatchable and cannot 
store its fuel source and, therefore, cannot respond to changes in 
demand or respond to transmission security constraints.

Formula Rate

Define:

A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%)
B = Corps Generation Net Plant Costs ($)
C = Plant Capacity (kW)
D = Capacity Used for Regulation (kW-year)
E = Capacity Purchases for Regulation ($)
F = Prior Period True-up

Regulation Annual Revenue Requirement = (A * B/C) * D + E + F

    A recalculated revenue requirement will go into effect every 
January 1 based on the above formula and updated financial data. 
Western-UGP will annually notify SPP and make data and information 
available to interested parties for review and comment related to the 
recalculated annual revenue requirement on or shortly after September 1 
of the preceding year. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP Web site and/or SPP 
Open Access Same-Time Information System.
Rate Schedule WAUW-AS4
October 1, 2015

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

ENERGY IMBALANCE SERVICE--WAUW

Effective

    On the first day of the first full billing period beginning on or 
after October 1, 2015, upon transfer of functional control of eligible 
Western-UGP facilities to SPP, and shall remain in effect through 
September 30, 2020, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the transfer of functional 
control and the effective date of the formula rates will be published 
in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Energy Imbalance Service is provided when a difference occurs 
between scheduled and actual delivery of energy to a load located 
within Western Area Power Administration-Upper Great Plains Region's 
(Western-UGP) WAUW over a single hour. Given the Southwest Power Pool, 
Inc. (SPP) Integrated Marketplace will not be extended into the Western 
Interconnection, Western-UGP, as the Balancing Authority, will offer to 
provide Energy Imbalance Service in the WAUW, if it is capable of doing 
so, from its own resources or from resources available to it, at the 
request of SPP, as the Transmission Provider, when transmission service 
is provided by SPP and used to serve load within the WAUW. Energy 
Imbalance Service in the WAUW will be billed by SPP to the SPP 
Transmission Customer along with the associated transmission service 
provided by SPP. The SPP Transmission Customer must either purchase 
this service from SPP, or make alternative comparable arrangements 
pursuant to the SPP Tariff to satisfy its Energy Imbalance Service 
obligation.
    The SPP Transmission Customer will incur a charge for either hourly 
energy imbalances under this 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.

[[Page 44348]]

Formula Rate

    For 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 the SPP 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.
    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 energy imbalance that occurs as a result of the 
SPP Transmission Customer's scheduled transaction(s) will be settled 
financially, at the end of each month. When energy taken in a schedule 
hour is greater than the energy scheduled, the charge is 110 percent of 
incremental cost. When energy taken is less than the scheduled amount, 
the credit is 90 percent of the incremental cost.
    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 SPP Transmission Customer's scheduled 
transaction(s) will be settled at 125 percent of Western-UGP's 
incremental cost when energy taken in a schedule hour is greater than 
the energy scheduled or 75 percent of Western-UGP's incremental cost 
when energy taken by a SPP 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 the applicable SPP Web site and/or SPP's Open Access 
Same-Time Information System (OASIS) at least 30 days before 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.
    The pricing and charge for deviations in the above deviation 
bandwidths is as specified above. Data used and the charges resulting 
from using this formula will be posted on the applicable SPP Web site 
and/or SPP OASIS.
Rate Schedule WAUW-AS5
October 1, 2015

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

OPERATING RESERVE--SPINNING RESERVE SERVICE--WAUW

Effective

    On the first day of the first full billing period beginning on or 
after October 1, 2015, upon transfer of functional control of eligible 
Western-UGP facilities to SPP, and shall remain in effect through 
September 30, 2020, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the transfer of functional 
control and the effective date of the formula rates will be published 
in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Operating Reserve-Spinning Reserve Service (Spinning Reserves) 
is needed to serve load immediately in the event of a system 
contingency. Spinning Reserves may be provided by generating units that 
are on-line and loaded at less than maximum output. Given the Southwest 
Power Pool, Inc. (SPP) Integrated Marketplace will not be extended into 
the Western Interconnection, Western Area Power Administration-Upper 
Great Plains Region (Western-UGP), as the Balancing Authority, will 
offer to provide Spinning Reserves, if available, at the request of SPP 
as the Transmission Provider in the WAUW. Operating Reserve-Spinning 
Reserve Service in the WAUW will be billed by SPP to the SPP 
Transmission Customer along with the associated transmission service 
provided by SPP. The SPP Transmission Customer must either purchase 
this service from SPP or make alternative comparable arrangements 
pursuant to the SPP Tariff to satisfy its Spinning Reserves obligation. 
Western-UGP's annual revenue requirement for Spinning Reserves 
(outlined below) will be utilized by SPP to calculate the WAUW charges 
for Spinning Reserves.

Formula Rate

Define:

A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%)
B = Corps Generation Net Plant Costs ($)
C = Plant Capacity (kW)
D = Maximum Load in the WAUW (kW)
E = Maximum Generation in the WAUW (kW)
F = Reserve Sharing Program Requirement based upon Load (%)--See 
Note 1
G = Reserve Sharing Program Requirement based upon Generation (%)--
See Note 2
H = Prior Period True-up

    Note 1: Currently 3% in the Northwest Power Pool (NWPP) Reserve 
Sharing Program
    Note 2: Currently 3% in the NWPP Reserve Sharing Program

Spinning Reserves Annual Revenue Requirement = (A * B/C) * ((D * F) 
+ (E * G)) + H

    A recalculated revenue requirement will go into effect every 
January 1 based on the above formula and updated financial, load/
generation, and Reserve Sharing Program requirements data. Western-UGP 
will annually notify SPP and make data and information available to 
interested parties for review and comment related to the recalculated 
annual revenue requirement on or shortly after September 1 of the 
preceding year. Data used and the charges resulting from using this 
formula will be posted on the applicable SPP Web site and/or SPP Open 
Access Same-Time Information System (OASIS).
    If resources are not available from a Western-UGP resource, 
Western-UGP, at the request of SPP as the Transmission Provider, will 
offer to purchase the Spinning Reserves and pass through the costs, 
plus an amount for administration, to SPP for the SPP Transmission 
Customer.
    In the event that Spinning Reserves are called upon for emergency 
use, the SPP Transmission Customer will be assessed a charge for energy 
used at the prevailing market energy rate in the WAUW. The prevailing 
market energy rate will be based upon a representative hourly energy 
index or combination of indexes. The index to be used will be posted on 
the applicable SPP Web site and/or SPP's OASIS at least 30 days before 
use for determining the prevailing market energy rate 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. The SPP 
Transmission Customer would be responsible for providing transmission 
service to get the Spinning Reserves to its destination.

[[Page 44349]]

Rate Schedule WAUW-AS6
October 1, 2015

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

OPERATING RESERVE--SUPPLEMENTAL RESERVE SERVICE--WAUW

Effective

    On the first day of the first full billing period beginning on or 
after October 1, 2015, upon transfer of functional control of eligible 
Western-UGP facilities to SPP, and shall remain in effect through 
September 30, 2020, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the transfer of functional 
control and the effective date of the formula rates will be published 
in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Operating Reserve-Supplemental Reserve Service (Supplemental 
Reserves) is needed to serve load in the event of a system contingency: 
however, it is not available immediately to serve load but rather 
within a short period of time. Supplemental Reserves may be provided by 
generating units that are on-line but unloaded, by quick-start 
generation, or by interruptible load. Given the Southwest Power Pool, 
Inc. (SPP) Integrated Marketplace will not be extended into the Western 
Interconnection, Western Area Power Administration-Upper Great Plains 
Region (Western-UGP), as the Balancing Authority, will offer to provide 
Supplemental Reserves, if available, at the request of SPP as the 
Transmission Provider, in the WAUW. Operating Reserve-Supplemental 
Reserve Service in the WAUW will be billed by SPP to the SPP 
Transmission Customer along with the associated transmission service 
provided by SPP. The SPP Transmission Customer must either purchase 
this service from SPP or make alternative comparable arrangements 
pursuant to the SPP Tariff to satisfy its Supplemental Reserves 
obligation. Western-UGP's annual revenue requirement for Supplemental 
Reserves (outlined below) will be utilized by SPP to calculate the WAUW 
charges for Supplemental Reserves.

Formula Rate

Define:

A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%)
B = Corps Generation Net Plant Costs ($)
C = Plant Capacity (kW)
D = Maximum Load in the WAUW (kW)
E = Maximum Generation in the WAUW (kW)
F = Reserve Sharing Program Requirement based upon Load (%)--See 
Note 1
G = Reserve Sharing Program Requirement based upon Generation (%)--
See Note 2
H = Prior Period True-up

    Note 1: Currently 3% in the Northwest Power Pool (NWPP) Reserve 
Sharing Program
    Note 2: Currently 3% in the NWPP Reserve Sharing Program

Supplemental Reserves Annual Revenue Requirement = (A * B/C) * ((D * 
F) + (E * G)) + H

    A recalculated revenue requirement will go into effect every 
January 1 based on the above formula and updated financial, load/
generation, and Reserve Sharing Program requirements data. Western-UGP 
will annually notify SPP and make data and information available to 
interested parties for review and comment related to the recalculated 
annual revenue requirement on or shortly after September 1 of the 
preceding year. Data used and the charges resulting from using this 
formula will be posted on the applicable SPP Web site and/or SPP Open 
Access Same-Time Information System (OASIS).
    If resources are not available from a Western-UGP resource, 
Western-UGP, at the request of SPP as the Transmission Provider, will 
offer to purchase the Supplemental Reserves and pass through the costs, 
plus an amount for administration, to SPP for the SPP Transmission 
Customer.
    In the event Supplemental Reserves are called upon for emergency 
use, the SPP Transmission Customer will be assessed a charge for energy 
used at the prevailing market energy rate in the WAUW. The prevailing 
market energy rate will be based upon a representative hourly energy 
index or combination of indexes. The index to be used will be posted on 
the applicable SPP Web site and/or SPP's OASIS at least 30 days before 
use for determining the prevailing market energy rate 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. The SPP 
Transmission Customer would be responsible for providing transmission 
service to get the Supplemental Reserves to its destination.
Rate Schedule WAUW-AS7
October 1, 2015

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

GENERATOR IMBALANCE SERVICE--WAUW

Effective

    On the first day of the first full billing period beginning on or 
after October 1, 2015, upon transfer of functional control of eligible 
Western-UGP facilities to SPP, and shall remain in effect through 
September 30, 2020, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the transfer of functional 
control and the effective date of the formula rates will be published 
in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Generator Imbalance Service is provided when a difference 
occurs between the output of a generator located within Western Area 
Power Administration-Upper Great Plains Region's (Western-UGP) 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. Western-UGP, as the Balancing Authority, will offer to provide 
this service, if it is capable of doing so, from its own resources or 
from resources available to it, at the request of the Southwest Power 
Pool, Inc. (SPP) as the Transmission Provider, when transmission 
service is used to deliver energy from a generator located within the 
WAUW. Generator Imbalance Service in the WAUW will be billed by SPP to 
the SPP Transmission Customer along with the associated transmission 
service provided by SPP. The SPP Transmission Customer must either 
purchase this service from SPP or make alternative comparable 
arrangements pursuant to the SPP Tariff, to satisfy its Generator 
Imbalance Service obligation. The SPP Transmission Customer will incur 
a charge 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.

[[Page 44350]]

    Western-UGP 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-UGP 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 
resource located within the WAUW and a delivery schedule from that 
generator serving load located outside of the WAUW. Intermittent 
resources serving load outside Western-UGP's WAUW will be required to 
be pseudo-tied or dynamically scheduled to another Balancing Authority 
Area.
    An intermittent resource, for the limited purpose of this Rate 
Schedule, is an electric generator that is not dispatchable and cannot 
store its fuel source and, therefore, cannot respond to changes in 
demand or respond to transmission security constraints.

Formula Rate

    For 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 the SPP 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.
    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 
the SPP 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.
    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 SPP 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 responding to directives by 
the Transmission Provider, a Balancing Authority, 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 upon a representative 
hourly energy index or combination of indexes. The index to be used 
will be posted on the applicable SPP Web site and/or SPP's Open Access 
Same-Time Information System (OASIS) at least 30 days before 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.
    The pricing and charge for deviations in the deviation bandwidths 
is as specified above. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP Web site and/or SPP 
OASIS.

[FR Doc. 2015-18240 Filed 7-24-15; 8:45 am]
BILLING CODE 6450-01-P