Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable; Bonneville Power Administration; Order Approving Rates on an Interim Basis and Providing Opportunity for Additional Comments, 57351-57353 [2015-24136]

Download as PDF Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES Enhancement Filing to be effective 11/ 16/2015. Filed Date: 9/16/15. Accession Number: 20150916–5137. Comments Due: 5 p.m. ET 10/7/15. Docket Numbers: ER15–2658–000. Applicants: Midcontinent Independent System Operator, Inc. Description: § 205(d) Rate Filing: 2015–09–16_Order 1000 (TOA) CTDS Enhancement Filing to be effective 11/ 15/2015. Filed Date: 9/16/15. Accession Number: 20150916–5139. Comments Due: 5 p.m. ET 10/7/15. Docket Numbers: ER15–2659–000. Applicants: Southern California Edison Company. Description: § 205(d) Rate Filing: Amended SGIA SEPV Palmdale East, LLC to be effective 11/17/2015. Filed Date: 9/17/15. Accession Number: 20150917–5002. Comments Due: 5 p.m. ET 10/8/15. Docket Numbers: ER15–2660–000. Applicants: Midcontinent Independent System Operator, Inc. Description: Annual Calculation of the Cost of New Entry value (‘‘CONE’’) for each Local Resource Zone (‘‘LRZ’’) in the MISO Region of Midcontinent Independent System Operator, Inc. Filed Date: 9/16/15. Accession Number: 20150916–5149. Comments Due: 5 p.m. ET 10/7/15. Docket Numbers: ER15–2661–000. Applicants: PJM Interconnection, L.L.C. Description: § 205(d) Rate Filing: Original WMPA SA No. 4259, Queue No. Z1–110 to be effective 7/22/2015. Filed Date: 9/17/15. Accession Number: 20150917–5070. Comments Due: 5 p.m. ET 10/8/15. The filings are accessible in the Commission’s eLibrary system by clicking on the links or querying the docket number. Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission’s Regulations (18 CFR 385.211 and 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding. eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: https://www.ferc.gov/ docs-filing/efiling/filing-req.pdf. For other information, call (866) 208–3676 (toll free). For TTY, call (202) 502–8659. VerDate Sep<11>2014 18:00 Sep 22, 2015 Jkt 235001 Dated: September 17, 2015. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2015–24135 Filed 9–22–15; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. AD06–6–000] Joint Meeting of the Nuclear Regulatory Commission and the Federal Energy Regulatory Commission; Notice of Joint Meeting of the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission The Federal Energy Regulatory Commission (FERC) and the Nuclear Regulatory Commission (NRC) will hold a joint meeting on Wednesday, October 21, 2015 at the headquarters of the Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426. The meeting is expected to begin at 9:00 a.m. and conclude at approximately 11:30 a.m. Eastern Time. Members of the public may attend the open session. Commissioners from both agencies are expected to participate. The format for the joint meeting will consist of discussions between the two sets of Commissioners following presentations by their respective staffs. In addition, representatives of the North American Electric Reliability Corporation (NERC) will attend and participate in this meeting. The technical conference will be transcribed. Transcripts of the technical conference will be available for a fee from Ace-Federal Reporters, Inc. ((202) 347–3700 or 1 (800) 336–6646). There will be a free Webcast of the conference. The webcast will allow persons to listen to the technical conference, but not participate. Anyone with Internet access can listen to the conference by navigating to the Calendar of Events at www.ferc.gov and locating the technical conference in the Calendar. The technical conference will contain a link to its webcast. The Capital Connection provides technical support for the webcast and offers the option of listing to the meeting via phone-bridge for a fee. If you have any questions, please visit www.CapitolConnection.org or call 703–993–3100.1 Pre-registration is not required but is highly encouraged for those attending in 1 The Webcast will continue to be available on the Calendar of Events on the Commission’s Web site www.ferc.gov for three months after the conference. PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 57351 person. Attendees may register in advance at the following Web page: https://www.ferc.gov/whats-new/ registration/10-21-15-NRC-form.asp. Attendees should bring a photo ID and allow time to pass through building security procedures. There is no fee to attend the open meeting. Commission conferences are accessible under section 508 of the Rehabilitation Act of 1973. For accessibility accommodations please send an email to accessibility@ferc.gov or call toll free 1–866–208–3372 (voice) or 202–502–8659 (TTY); or send a fax to 202–208–2106 with the required accommodations. Questions about the meeting should be directed to Sarah McKinley at sarah.mckinley@ferc.gov or by phone at 202–502–8368. Dated: September 17, 2015. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2015–24134 Filed 9–22–15; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. EF15–9–000] Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable; Bonneville Power Administration; Order Approving Rates on an Interim Basis and Providing Opportunity for Additional Comments 1. In this order, we approve the Bonneville Power Administration’s (Bonneville) proposed 2016 wholesale power and transmission rates on an interim basis, pending our further review. We also provide an additional period of time for the parties to file comments. I. Background 2. On July 29, 2015, Bonneville filed a request for interim and final approval of its wholesale power 1 and transmission rates 2 in accordance with 1 The proposed wholesale power rates for which Bonneville seeks approval for the period October 1, 2015 through September 30, 2017, include: Priority Firm Power Rate (PF–16); New Resource Firm Power Rate (NR–16); Industrial Firm Power Rate (IP–16); Firm Power Products and Services Rate (FPS–16); and Power General Rate Schedule Provisions (GRSPs). 2 The proposed transmission rates for which Bonneville seeks approval for the period October 1, 2015 through September 30, 2017, include: Formula Power Transmission Rate (FPT–16.1); Formula E:\FR\FM\23SEN1.SGM Continued 23SEN1 57352 Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices the Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Act) 3 and Part 300 of the Commission’s regulations.4 Bonneville projects that the filed rates will produce average annual power revenues of $2.861 billion, and average annual revenues from transmission and ancillary services rates of $1.085 billion. Bonneville asserts that this level of annual revenues is sufficient to recover its costs for the 2016–2017 rate approval period, while providing cash flow to ensure at least a 95 percent probability of making all payments to the United States Treasury in full and on time for each year of the rate period. mstockstill on DSK4VPTVN1PROD with NOTICES II. Notice of Filing 3. Notice of Bonneville’s application was published in the Federal Register,5 with protests and interventions due on or before August 28, 2015. Timely motions to intervene were filed by the Turlock Irrigation District, Calpine Corporation, Public Power Council, Industrial Customers of Northwest Utilities, Northwest Requirements Utilities, Public Power Council, Idaho Power Company, PacifiCorp, Puget Sound Company, M-S-R Public Power Agency, Caithness Shepherds Flat LLC, Modesto Irrigation District, Pacific Northwest Generating Cooperative, Western Public Agencies Group, Powerex Corporation and Portland General Electric Company. 4. Iberdrola Renewables, LLC (Iberdrola) filed a motion to intervene and protest. Iberdrola asserts that Bonneville’s Oversupply Rate, OS–16, violates the Northwest Power Act by incorrectly allocating Bonneville’s power costs to Bonneville’s transmission customers.6 Iberdrola quotes Northwest Power Act section 7(g) as saying all costs of fish and wildlife measures, as well as all costs associated with the sale of or inability to sell excess power, must be allocated to power rates.7 Iberdrola argues Bonneville’s oversupply management costs are fish and wildlife costs as well as costs associated with the inability to Power Transmission Rate (FPT–16.3); Integration of Resources Rate (IR–16); Network Integration Rate (NT–16); Point-to-Point Rate (PTP–16); Southern Intertie Rate (IS–16); Montana Intertie Rate (IM–16); Use-of-Facilities Transmission Rate (UFT–16); Advance Funding Rate (AF–16); Ancillary Services and Control Area Services Rates (ACS–16); Townsend-Garrison Transmission Rate (TGT–16); WECC and Peak Service Rate (PW–16); Oversupply Rate (OS–16); Eastern Intertie Rate (IE–16); and Transmission General Rate Schedule Provisions (GRSPs). 3 16 U.S.C. 839e (2012). 4 18 CFR Part 300 (2015). 5 80 FR 46,983 (Aug. 8, 2015). 6 Iberdrola Protest at 3. 7 Id. at 4. VerDate Sep<11>2014 18:00 Sep 22, 2015 Jkt 235001 sell excess electric power, and thus should be allocated to power customers, not transmission customers.8 Iberdrola continues that, although Bonneville states that oversupply costs occur because wind generators have been interconnected to its system, the oversupply costs are actually caused by Bonneville having too much generation and not enough load, and having fishprotection restrictions on spillage that require Bonneville to pay someone to take the excess generation.9 Finally, Iberdrola argues that if Bonneville wishes to extend the use of the Oversupply Management Proposal (OMP) for the 2016–17 rate period, it should submit those rates to the Commission for review and approval under Federal Power Act section 211A.10 5. Avista Corporation, Portland General Electric Company, Puget Sound Energy, Inc, and PacifiCorp (collectively Joint Commenters) filed Joint Comments requesting that the Commission reject Bonneville’s proposed allocation of oversupply costs to transmission customers and deny Bonneville’s application for confirmation and approval of the OS–16 Rate.11 The Joint Commenters request that the OS–16 Rate should be rejected as a permanent solution to Bonneville’s purported oversupply.12 The Joint Commenters also request that the Commission not rely on its prior OS–14 rate determinations in reviewing the OS–16 rate,13 and that Bonneville’s proposed allocation of oversupply costs to transmission is based on the flawed premise that interconnection of, or scheduling of transmission for, generation in Bonneville’s Balancing Authority Area causes oversupply.14 The Joint Commenters also assert that it is Bonneville’s reliance on OMP and its failure to take all reasonable actions to avoid excess spill that lead to the erroneous conclusion that transmission of displaceable generation interconnected in Bonneville’s Balancing Authority Area causes oversupply.15 The Joint Commenters further assert that the Northwest Power Act 16 and Transmission System Act 17 cost allocation standards prohibit the 8 Id. at 5. at 6. 10 Id. at 7–8; 16 U.S.C. 824j–1(f) (2012). 11 Joint Commenters at 18. 12 Joint Commenters at 2, citing Bonneville Power Admin., 149 FERC ¶ 61,043 (2014). 13 Id. at 5–6. 14 Id. at 7–11. 15 Id. at 11–14. 16 16 U.S.C. 839 (2012). 17 16 U.S.C. 838 (2012). 9 Id. PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 allocation of oversupply costs to transmission rates.18 III. Discussion A. Procedural Matters 6. Pursuant to Rule 214 of the Commission’s Rules of Practice and Procedure,19 the timely, unopposed motions to intervene serve to make the entities that filed them parties to this proceeding. 7. Rule 213(a)(2) of the Commission’s Rules of Practice and Procedure 20 prohibits an answer to a protest or an answer unless otherwise ordered by the decisional authority. B. Standard of Review 8. Under the Northwest Power Act, the Commission’s review of Bonneville’s regional power and transmission rates is limited to determining whether Bonneville’s proposed rates meet the three specific requirements of section 7(a)(2) of the Northwest Power Act: 21 (A) They must be sufficient to assure repayment of the federal investment in the Federal Columbia River Power System over a reasonable number of years after first meeting Bonneville’s other costs; (B) they must be based upon Bonneville’s total system costs; and (C) insofar as transmission rates are concerned, they must equitably allocate the costs of the federal transmission system between federal and non-federal power. 9. Commission review of Bonneville’s non-regional, non-firm rates also is limited. Review is restricted to determining whether such rates meet the requirements of section 7(k) of the Northwest Power Act,22 which requires that they comply with the Bonneville Project Act, the Flood Control Act of 1944, and the Federal Columbia River Transmission System Act. Taken together, those statutes require that Bonneville’s non-regional, non-firm rates: (A) Recover the cost of generation and transmission of such electric energy, including the amortization of investments in the power projects within a reasonable period; (B) encourage the most widespread use of Bonneville power; and 18 Id. at 14–17. CFR 385.214 (2015). 20 18 CFR 385.213(a)(2) (2015), 21 16 U.S.C. 839e(a)(2) (2012). Bonneville also must comply with the financial, accounting, and ratemaking requirements in Department of Energy Order No. RA 6120.2. 22 16 U.S.C. 839e(k) (2012). 19 18 E:\FR\FM\23SEN1.SGM 23SEN1 Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES (C) provide the lowest possible rates to consumers consistent with sound business principles. 10. Unlike the Commission’s statutory authority under the Federal Power Act, the Commission’s authority under sections 7(a) and 7(k) of the Northwest Power Act does not include the power to modify the rates. The responsibility for developing rates in the first instance is vested with Bonneville’s Administrator. The rates are then submitted to the Commission for approval or disapproval. In this regard, the Commission’s role can be viewed as an appellate one: to affirm or remand the rates submitted to it for review.23 11. Moreover, review at this interim stage is further limited. In view of the volume and complexity of a Bonneville rate application, such as the one now before the Commission in this filing, and the limited period in advance of the requested effective date in which to review the application,24 the Commission generally defers resolution of issues on the merits of Bonneville’s application until the order on final confirmation. Thus, the proposed rates, if not patently deficient, generally are approved on an interim basis and the parties are afforded an additional opportunity in which to raise issues with regard to Bonneville’s filing.25 12. The Commission declines at this time to grant final confirmation and approval of Bonneville’s proposed wholesale power and transmission rates. The Commission’s preliminary review nevertheless indicates that Bonneville’s wholesale power and transmission rates filing appears to meet the statutory standards and the minimum threshold filing requirements of Part 300 of the Commission’s regulations.26 Moreover, the Commission’s preliminary review of Bonneville’s submittal indicates that it does not contain any patent deficiencies. The proposed rates therefore will be approved on an interim basis pending our further review. We note, as well, that no one will be harmed by this decision because interim approval allows Bonneville’s rates to go 23 See, e.g., United States Department of Energy— Bonneville Power Admin., 67 FERC ¶ 61,351, at 62,216–17 (1994); see also, e.g., Aluminum Co. of America v. Bonneville Power Admin., 903 F.2d 585, 592–93 (9th Cir. 1989). 24 See 18 CFR 300.10(a)(3)(ii) (2015). 25 See, e.g., United States Department of Energy— Bonneville Power Administration, 64 FERC ¶ 61,375, at 63,606 (1993); United States Department of Energy—Bonneville Power Admin., 40 FERC ¶ 61,351, at 62,059–60 (1987). 26 See, e.g., United States Department of Energy— Bonneville Power Admin., 105 FERC ¶ 61,006, at PP 13–14 (2003); United States Department of Energy— Bonneville Power Admin., 96 FERC ¶ 61,360, at 62,358 (2001). VerDate Sep<11>2014 18:00 Sep 22, 2015 Jkt 235001 into effect subject to refund with interest; the Commission may order refunds with interest if the Commission later determines in its final decision not to approve the rates.27 13. In addition, we will provide an additional period of time for parties to file comments and reply comments on issues related to final confirmation and approval of Bonneville’s proposed rates. This will ensure that the record in this proceeding is complete and fully developed. The Commission orders: (A) Interim approval of Bonneville’s proposed wholesale power and transmission rates is hereby granted, to become effective on October 1, 2015, through September 30, 2017, subject to refund with interest as set forth in section 300.20(c) of the Commission’s regulations 28 pending final action and either their approval or disapproval. (B) Within thirty (30) days of the date of this order, parties who wish to do so may file additional comments regarding final confirmation and approval of Bonneville’s proposed rates. Parties who wish to do so may file reply comments within twenty (20) days thereafter. (C) The Secretary shall promptly publish this order in the Federal Register. By the Commission. Issued: September 17, 2015. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2015–24136 Filed 9–22–15; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Southeastern Power Administration Kerr-Philpott System Southeastern Power Administration, (Southeastern), Department of Energy. ACTION: Notice of interim approval. AGENCY: The Deputy Secretary, Department of Energy, confirmed and approved, on an interim basis new rate schedules VA–1–C, VA–2–C, VA–3–C, VA–4–C, DEP–1–C, DEP–2–C, DEP–3–C, DEP–4–C, AP–1–C, AP–2–C, AP–3–C, AP–4–C, NC–1–C, and Replacement–2– B. These rate schedules are applicable to Southeastern power sold to existing preference customers in the Virginia and North Carolina service area. The rate schedules are approved on an interim basis through September 30, 2020, and are subject to confirmation SUMMARY: 27 See 28 18 PO 00000 18 CFR 300.20(c) (2015). CFR 300.20(c) (2015). Frm 00022 Fmt 4703 Sfmt 4703 57353 and approval by the Federal Energy Regulatory Commission (FERC) on a final basis. DATES: The rates are effective October 1, 2015. FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs III, Assistant Administrator, Finance and Marketing, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635– 4578, (706) 213–3800. SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by Order issued March 11, 2011, in Docket No. EF10–8–000 (134 FERC 62,233), confirmed and approved Wholesale Power Rate Schedules VA–1– B, VA–2–B, VA–3–B, VA–4–B, CP&L–1– B, CP&L–2–B, CP&L–3–B, CP&L–4–B, AP–1–B, AP–2–B, AP–3–B, AP–4–B, NC–1–B, and Replacement–2–A through September 30, 2015. This order replaces these rate schedules on an interim basis, subject to final approval by FERC. Dated: September 16, 2015. Elizabeth Sherwood-Randall, Deputy Secretary of Energy. Department of Energy Deputy Secretary In the Matter of: Southeastern Power Administration), Kerr-Philpott System Power Rates), Rate Order No. SEPA–58 Order Confirming and Approving Power Rates on an Interim Basis Pursuant to Sections 302(a) of the Department of Energy Organization Act, Public Law 95–91, the functions of the Secretary of the Interior and the Federal Power Commission under Section 5 of the Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern Power Administration (Southeastern), were transferred to and vested in the Secretary of Energy. By Delegation Order No. 00–037.00A, effective December 6, 2001, the Secretary of Energy delegated to Southeastern’s Administrator the authority to develop power and transmission rates, to the Deputy Secretary of Energy the authority to confirm, approve, and place in effect such rates on interim basis, and to the Federal Energy Regulatory Commission (FERC) the authority to confirm, approve, and place into effect on a final basis or to disapprove rates developed by the Administrator under the delegation. This rate is issued by the Deputy Secretary pursuant to that delegation order. Background Power from the Kerr-Philpott Projects is presently sold under Wholesale E:\FR\FM\23SEN1.SGM 23SEN1

Agencies

[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Notices]
[Pages 57351-57353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24136]


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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EF15-9-000]


Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, 
Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable; Bonneville 
Power Administration; Order Approving Rates on an Interim Basis and 
Providing Opportunity for Additional Comments

    1. In this order, we approve the Bonneville Power Administration's 
(Bonneville) proposed 2016 wholesale power and transmission rates on an 
interim basis, pending our further review. We also provide an 
additional period of time for the parties to file comments.

I. Background

    2. On July 29, 2015, Bonneville filed a request for interim and 
final approval of its wholesale power \1\ and transmission rates \2\ in 
accordance with

[[Page 57352]]

the Pacific Northwest Electric Power Planning and Conservation Act 
(Northwest Power Act) \3\ and Part 300 of the Commission's 
regulations.\4\ Bonneville projects that the filed rates will produce 
average annual power revenues of $2.861 billion, and average annual 
revenues from transmission and ancillary services rates of $1.085 
billion. Bonneville asserts that this level of annual revenues is 
sufficient to recover its costs for the 2016-2017 rate approval period, 
while providing cash flow to ensure at least a 95 percent probability 
of making all payments to the United States Treasury in full and on 
time for each year of the rate period.
---------------------------------------------------------------------------

    \1\ The proposed wholesale power rates for which Bonneville 
seeks approval for the period October 1, 2015 through September 30, 
2017, include: Priority Firm Power Rate (PF-16); New Resource Firm 
Power Rate (NR-16); Industrial Firm Power Rate (IP-16); Firm Power 
Products and Services Rate (FPS-16); and Power General Rate Schedule 
Provisions (GRSPs).
    \2\ The proposed transmission rates for which Bonneville seeks 
approval for the period October 1, 2015 through September 30, 2017, 
include: Formula Power Transmission Rate (FPT-16.1); Formula Power 
Transmission Rate (FPT-16.3); Integration of Resources Rate (IR-16); 
Network Integration Rate (NT-16); Point-to-Point Rate (PTP-16); 
Southern Intertie Rate (IS-16); Montana Intertie Rate (IM-16); Use-
of-Facilities Transmission Rate (UFT-16); Advance Funding Rate (AF-
16); Ancillary Services and Control Area Services Rates (ACS-16); 
Townsend-Garrison Transmission Rate (TGT-16); WECC and Peak Service 
Rate (PW-16); Oversupply Rate (OS-16); Eastern Intertie Rate (IE-
16); and Transmission General Rate Schedule Provisions (GRSPs).
    \3\ 16 U.S.C. 839e (2012).
    \4\ 18 CFR Part 300 (2015).
---------------------------------------------------------------------------

II. Notice of Filing

    3. Notice of Bonneville's application was published in the Federal 
Register,\5\ with protests and interventions due on or before August 
28, 2015. Timely motions to intervene were filed by the Turlock 
Irrigation District, Calpine Corporation, Public Power Council, 
Industrial Customers of Northwest Utilities, Northwest Requirements 
Utilities, Public Power Council, Idaho Power Company, PacifiCorp, Puget 
Sound Company, M-S-R Public Power Agency, Caithness Shepherds Flat LLC, 
Modesto Irrigation District, Pacific Northwest Generating Cooperative, 
Western Public Agencies Group, Powerex Corporation and Portland General 
Electric Company.
---------------------------------------------------------------------------

    \5\ 80 FR 46,983 (Aug. 8, 2015).
---------------------------------------------------------------------------

    4. Iberdrola Renewables, LLC (Iberdrola) filed a motion to 
intervene and protest. Iberdrola asserts that Bonneville's Oversupply 
Rate, OS-16, violates the Northwest Power Act by incorrectly allocating 
Bonneville's power costs to Bonneville's transmission customers.\6\ 
Iberdrola quotes Northwest Power Act section 7(g) as saying all costs 
of fish and wildlife measures, as well as all costs associated with the 
sale of or inability to sell excess power, must be allocated to power 
rates.\7\ Iberdrola argues Bonneville's oversupply management costs are 
fish and wildlife costs as well as costs associated with the inability 
to sell excess electric power, and thus should be allocated to power 
customers, not transmission customers.\8\ Iberdrola continues that, 
although Bonneville states that oversupply costs occur because wind 
generators have been interconnected to its system, the oversupply costs 
are actually caused by Bonneville having too much generation and not 
enough load, and having fish-protection restrictions on spillage that 
require Bonneville to pay someone to take the excess generation.\9\ 
Finally, Iberdrola argues that if Bonneville wishes to extend the use 
of the Oversupply Management Proposal (OMP) for the 2016-17 rate 
period, it should submit those rates to the Commission for review and 
approval under Federal Power Act section 211A.\10\
---------------------------------------------------------------------------

    \6\ Iberdrola Protest at 3.
    \7\ Id. at 4.
    \8\ Id. at 5.
    \9\ Id. at 6.
    \10\ Id. at 7-8; 16 U.S.C. 824j-1(f) (2012).
---------------------------------------------------------------------------

    5. Avista Corporation, Portland General Electric Company, Puget 
Sound Energy, Inc, and PacifiCorp (collectively Joint Commenters) filed 
Joint Comments requesting that the Commission reject Bonneville's 
proposed allocation of oversupply costs to transmission customers and 
deny Bonneville's application for confirmation and approval of the OS-
16 Rate.\11\ The Joint Commenters request that the OS-16 Rate should be 
rejected as a permanent solution to Bonneville's purported 
oversupply.\12\ The Joint Commenters also request that the Commission 
not rely on its prior OS-14 rate determinations in reviewing the OS-16 
rate,\13\ and that Bonneville's proposed allocation of oversupply costs 
to transmission is based on the flawed premise that interconnection of, 
or scheduling of transmission for, generation in Bonneville's Balancing 
Authority Area causes oversupply.\14\ The Joint Commenters also assert 
that it is Bonneville's reliance on OMP and its failure to take all 
reasonable actions to avoid excess spill that lead to the erroneous 
conclusion that transmission of displaceable generation interconnected 
in Bonneville's Balancing Authority Area causes oversupply.\15\ The 
Joint Commenters further assert that the Northwest Power Act \16\ and 
Transmission System Act \17\ cost allocation standards prohibit the 
allocation of oversupply costs to transmission rates.\18\
---------------------------------------------------------------------------

    \11\ Joint Commenters at 18.
    \12\ Joint Commenters at 2, citing Bonneville Power Admin., 149 
FERC ] 61,043 (2014).
    \13\ Id. at 5-6.
    \14\ Id. at 7-11.
    \15\ Id. at 11-14.
    \16\ 16 U.S.C. 839 (2012).
    \17\ 16 U.S.C. 838 (2012).
    \18\ Id. at 14-17.
---------------------------------------------------------------------------

III. Discussion

A. Procedural Matters

    6. Pursuant to Rule 214 of the Commission's Rules of Practice and 
Procedure,\19\ the timely, unopposed motions to intervene serve to make 
the entities that filed them parties to this proceeding.
---------------------------------------------------------------------------

    \19\ 18 CFR 385.214 (2015).
---------------------------------------------------------------------------

    7. Rule 213(a)(2) of the Commission's Rules of Practice and 
Procedure \20\ prohibits an answer to a protest or an answer unless 
otherwise ordered by the decisional authority.
---------------------------------------------------------------------------

    \20\ 18 CFR 385.213(a)(2) (2015),
---------------------------------------------------------------------------

B. Standard of Review

    8. Under the Northwest Power Act, the Commission's review of 
Bonneville's regional power and transmission rates is limited to 
determining whether Bonneville's proposed rates meet the three specific 
requirements of section 7(a)(2) of the Northwest Power Act: \21\
---------------------------------------------------------------------------

    \21\ 16 U.S.C. 839e(a)(2) (2012). Bonneville also must comply 
with the financial, accounting, and ratemaking requirements in 
Department of Energy Order No. RA 6120.2.
---------------------------------------------------------------------------

    (A) They must be sufficient to assure repayment of the federal 
investment in the Federal Columbia River Power System over a reasonable 
number of years after first meeting Bonneville's other costs;
    (B) they must be based upon Bonneville's total system costs; and
    (C) insofar as transmission rates are concerned, they must 
equitably allocate the costs of the federal transmission system between 
federal and non-federal power.
    9. Commission review of Bonneville's non-regional, non-firm rates 
also is limited. Review is restricted to determining whether such rates 
meet the requirements of section 7(k) of the Northwest Power Act,\22\ 
which requires that they comply with the Bonneville Project Act, the 
Flood Control Act of 1944, and the Federal Columbia River Transmission 
System Act. Taken together, those statutes require that Bonneville's 
non-regional, non-firm rates:
---------------------------------------------------------------------------

    \22\ 16 U.S.C. 839e(k) (2012).
---------------------------------------------------------------------------

    (A) Recover the cost of generation and transmission of such 
electric energy, including the amortization of investments in the power 
projects within a reasonable period;
    (B) encourage the most widespread use of Bonneville power; and

[[Page 57353]]

    (C) provide the lowest possible rates to consumers consistent with 
sound business principles.
    10. Unlike the Commission's statutory authority under the Federal 
Power Act, the Commission's authority under sections 7(a) and 7(k) of 
the Northwest Power Act does not include the power to modify the rates. 
The responsibility for developing rates in the first instance is vested 
with Bonneville's Administrator. The rates are then submitted to the 
Commission for approval or disapproval. In this regard, the 
Commission's role can be viewed as an appellate one: to affirm or 
remand the rates submitted to it for review.\23\
---------------------------------------------------------------------------

    \23\ See, e.g., United States Department of Energy--Bonneville 
Power Admin., 67 FERC ] 61,351, at 62,216-17 (1994); see also, e.g., 
Aluminum Co. of America v. Bonneville Power Admin., 903 F.2d 585, 
592-93 (9th Cir. 1989).
---------------------------------------------------------------------------

    11. Moreover, review at this interim stage is further limited. In 
view of the volume and complexity of a Bonneville rate application, 
such as the one now before the Commission in this filing, and the 
limited period in advance of the requested effective date in which to 
review the application,\24\ the Commission generally defers resolution 
of issues on the merits of Bonneville's application until the order on 
final confirmation. Thus, the proposed rates, if not patently 
deficient, generally are approved on an interim basis and the parties 
are afforded an additional opportunity in which to raise issues with 
regard to Bonneville's filing.\25\
---------------------------------------------------------------------------

    \24\ See 18 CFR 300.10(a)(3)(ii) (2015).
    \25\ See, e.g., United States Department of Energy--Bonneville 
Power Administration, 64 FERC ] 61,375, at 63,606 (1993); United 
States Department of Energy--Bonneville Power Admin., 40 FERC ] 
61,351, at 62,059-60 (1987).
---------------------------------------------------------------------------

    12. The Commission declines at this time to grant final 
confirmation and approval of Bonneville's proposed wholesale power and 
transmission rates. The Commission's preliminary review nevertheless 
indicates that Bonneville's wholesale power and transmission rates 
filing appears to meet the statutory standards and the minimum 
threshold filing requirements of Part 300 of the Commission's 
regulations.\26\ Moreover, the Commission's preliminary review of 
Bonneville's submittal indicates that it does not contain any patent 
deficiencies. The proposed rates therefore will be approved on an 
interim basis pending our further review. We note, as well, that no one 
will be harmed by this decision because interim approval allows 
Bonneville's rates to go into effect subject to refund with interest; 
the Commission may order refunds with interest if the Commission later 
determines in its final decision not to approve the rates.\27\
---------------------------------------------------------------------------

    \26\ See, e.g., United States Department of Energy--Bonneville 
Power Admin., 105 FERC ] 61,006, at PP 13-14 (2003); United States 
Department of Energy--Bonneville Power Admin., 96 FERC ] 61,360, at 
62,358 (2001).
    \27\ See 18 CFR 300.20(c) (2015).
---------------------------------------------------------------------------

    13. In addition, we will provide an additional period of time for 
parties to file comments and reply comments on issues related to final 
confirmation and approval of Bonneville's proposed rates. This will 
ensure that the record in this proceeding is complete and fully 
developed.
    The Commission orders:
    (A) Interim approval of Bonneville's proposed wholesale power and 
transmission rates is hereby granted, to become effective on October 1, 
2015, through September 30, 2017, subject to refund with interest as 
set forth in section 300.20(c) of the Commission's regulations \28\ 
pending final action and either their approval or disapproval.
---------------------------------------------------------------------------

    \28\ 18 CFR 300.20(c) (2015).
---------------------------------------------------------------------------

    (B) Within thirty (30) days of the date of this order, parties who 
wish to do so may file additional comments regarding final confirmation 
and approval of Bonneville's proposed rates. Parties who wish to do so 
may file reply comments within twenty (20) days thereafter.
    (C) The Secretary shall promptly publish this order in the Federal 
Register.

    By the Commission.

    Issued: September 17, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-24136 Filed 9-22-15; 8:45 am]
 BILLING CODE 6717-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.