Central Arizona Project-Rate Order No. WAPA-172, 81310-81314 [2015-32792]
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asabaliauskas on DSK5VPTVN1PROD with NOTICES
81310
Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Notices
Applicants: Sierra Pacific Power
Company.
Description: Compliance filing:
Market-Based Rate Tariff Volume No. 7
to be effective 12/1/2015.
Filed Date: 12/21/15.
Accession Number: 20151221–5308.
Comments Due: 5 p.m. ET 1/11/16.
Docket Numbers: ER16–606–000.
Applicants: PacifiCorp.
Description: Compliance filing:
Amendment to Market-Based Rate
Tariff—EIM Compliance Filing to be
effective 12/1/2015.
Filed Date: 12/21/15.
Accession Number: 20151221–5310.
Comments Due: 5 p.m. ET 1/11/16.
Docket Numbers: ER16–607–000.
Applicants: 67RK 8me LLC.
Description: § 205(d) Rate Filing: SFA
to be effective 12/22/2015.
Filed Date: 12/21/15.
Accession Number: 20151221–5311.
Comments Due: 5 p.m. ET 1/11/16.
Docket Numbers: ER16–608–000.
Applicants: 65HK 8me LLC.
Description: § 205(d) Rate Filing:
65HK 8me LLC Hayworth SFA to be
effective 12/22/2015.
Filed Date: 12/21/15.
Accession Number: 20151221–5312.
Comments Due: 5 p.m. ET 1/11/16.
Docket Numbers: ER16–609–000.
Applicants: 87RL 8me LLC.
Description: § 205(d) Rate Filing:
87RL 8me LLC Woodmere SFA to be
effective 12/22/2015.
Filed Date: 12/21/15.
Accession Number: 20151221–5313.
Comments Due: 5 p.m. ET 1/11/16.
Docket Numbers: ER16–610–000.
Applicants: Northern Indiana Public
Service Company.
Description: § 205(d) Rate Filing:
Filing of a CIAC Agreement to be
effective 1/4/2016.
Filed Date: 12/21/15.
Accession Number: 20151221–5314.
Comments Due: 5 p.m. ET 1/11/16.
Take notice that the Commission
received the following electric
reliability filings:
Docket Numbers: RR15–12–001.
Applicants: North American Electric
Reliability Corporation.
Description: Compliance Filing of
North American Electric Reliability
Corporation in Accordance with the
Commission’s November 2, 2015 Order.
Filed Date: 12/18/15.
Accession Number: 20151218–5315.
Comments Due: 5 p.m. ET 1/8/16.
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
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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.
Dated: December 22, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015–32689 Filed 12–28–15; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Central Arizona Project—Rate Order
No. WAPA–172
Western Area Power
Administration, DOE.
ACTION: Notice of final transmission
service formula rates.
AGENCY:
The Deputy Secretary of
Energy confirmed and approved Rate
Order No. WAPA–172 and Rate
Schedules CAP–FT3, CAP–NFT3, and
CAP–NITS3, placing transmission
service formula rates for the Central
Arizona Project (CAP) of the Western
Area Power Administration (Western)
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 replaced by other
rates. The provisional rates will provide
sufficient revenue to pay all annual
costs, including interest expense, and
repay required investment within the
allowable periods.
DATES: Rate Schedules CAP–FT3, CAP–
NFT3, and CAP–NITS3 are effective on
the first day of the first full billing
period beginning on or after January 1,
2016, and will be in effect until FERC
confirms, approves, and places the rate
schedules in effect on a final basis
through December 31, 2020, or until the
rate schedules are superseded.
FOR FURTHER INFORMATION CONTACT: Mr.
Jack Murray, Vice President of Power
Marketing, Desert Southwest Customer
Service Regional Office, Western Area
Power Administration, P.O. Box 6457,
SUMMARY:
PO 00000
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Phoenix, AZ 85005–6457, (602) 605–
2555, email jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: An FRN
was published on July 24, 2015 (80 FR
44100) announcing the proposed rates
for transmission service and initiating a
public consultation and comment
period. On July 29, 2015, Western
notified all CAP customers and
interested parties of the rate adjustment
and provided a copy of the published
FRN. On August 27, 2015, Western held
a public information forum in Phoenix,
Arizona, explained the proposed rates
and potential changes to the proposed
rates, answered questions, and provided
handouts. On September 24, 2015,
Western held a public comment forum
in Phoenix, Arizona, to give the public
an opportunity to comment for the
record. No comments were received at
the forum.
Previous Rate Schedules CAP–FT2,
CAP–NFT2, and CAP–NITS2 for Rate
Order No. WAPA–124 1 were approved
by FERC for a 5-year period through
December 31, 2010. These Rate
Schedules were extended through
December 31, 2012, under Rate Order
No. WAPA–153,2 and extended again
through December 31, 2015, under Rate
Order No. WAPA–158.3 Rate Schedules
CAP–FT2, CAP–NFT2, and CAP–NITS2
are being superseded by Rate Schedules
CAP–FT3, CAP–NFT3, and CAP–NITS3.
Under Rate Schedule CAP–FT2, the rate
for firm point-to-point transmission
service is $13.56 per kilowatt year (kWyear). The provisional rate for firm
point-to-point transmission service
under Rate Schedule CAP–FT3 is
$14.88/kW-year, which represents an
increase of 10 percent when compared
with the existing rate. Under Rate
Schedule CAP–NFT2, the rate for nonfirm point-to-point transmission service
is 1.55 mills per kilowatt hour (mills/
kWh). The provisional rate for non-firm
point-to-point transmission service
under Rate Schedule CAP–NFT3 is 1.70
mills/kWh, which represents an
increase of 10 percent when compared
with the existing rate. There will be no
changes to the rate formula under CAP–
NITS3.
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
1 Rate Order No. WAPA–124 was approved by
FERC on a final basis on June 29, 2006, in Docket
No. EF06–5111–000 (115 FERC ¶ 62,326).
2 76 FR 548 (January 5, 2011).
3 78 FR 18335 (March 26, 2013).
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(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 00–001.00F, and in
compliance with 10 CFR part 903 and
18 CFR part 300, I hereby confirm,
approve, and place provisional rates for
transmission service under Rate Order
No. WAPA–172 into effect on an interim
basis. New Rate Schedules CAP–FT3,
CAP–NFT3, and CAP–NITS3 will be
submitted promptly to FERC for
confirmation and approval on a final
basis.
Dated: December 21, 2015.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.
DEPARTMENT OF ENERGY
DEPUTY SECRETARY
asabaliauskas on DSK5VPTVN1PROD with NOTICES
In the matter of: Western Area Power
Administration Rate Adjustment for the
Central Arizona Project
Rate Order No. WAPA–172
ORDER CONFIRMING, APPROVING,
AND PLACING THE CENTRAL
ARIZONA PROJECT TRANSMISSION
SERVICE FORMULA RATES INTO
EFFECT ON AN INTERIM BASIS
These rates were 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 Area Power Administration’s
(Western) 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. Existing DOE procedures
for public participation in power rate
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adjustments (10 CFR part 903) were
published on September 18, 1985.
Western: Western Area Power
Administration.
Acronyms and Definitions
Effective Date
The new provisional rates will take
effect on the first day of the first full
billing period beginning on or after
January 1, 2016, and will remain in
effect until FERC confirms, approves,
and places the rate schedules in effect
on a final basis through December 31,
2020, or until the rate schedules are
superseded.
As used in this Rate Order, the
following acronyms and definitions
apply:
Administrator: Administrator for the
Western Area Power Administration.
Capacity: The electric capability of a
transformer, transmission circuit, or
other equipment, expressed in kilowatts
(kW).
CAP: Central Arizona Project, one of
three related water development
projects that make up the Colorado
River Basin Project.
Customer: An entity with a contract or
service agreement that receives service
from Western’s Desert Southwest
Region.
DOE: United States Department of
Energy.
DOE Order RA 6120.2: A DOE order
outlining power marketing
administration financial reporting and
ratemaking procedures.
Desert Southwest Region: The Desert
Southwest Customer Service Region of
Western.
FERC: Federal Energy Regulatory
Commission.
Firm: A type of product and/or service
that is available at the time requested by
the customer.
Formula Rates: A rate which is based
upon a formula calculated yearly.
FRN: Federal Register notice.
Kilovolt (kV): Electrical unit of
measure of potential difference that
equals 1,000 volts.
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.
Kilowatt month (kW-month):
Electrical unit of the monthly amount of
capacity.
Kilowatt year (kW-year): Electrical
unit of the yearly amount of capacity.
Mill: A monetary denomination of the
United States that equals one tenth of a
cent or one thousandth of a dollar.
Mills per kilowatt hour (mills/kWh): A
unit of charge.
Non-firm: A type of product and/or
service not always available at the time
requested by the customer.
O&M: Operation and Maintenance.
Proposed Rate: A rate that has been
recommended by Western to the Deputy
Secretary of Energy for approval.
Provisional Rate: A rate that has been
confirmed, approved, and placed into
effect on an interim basis by the Deputy
Secretary of Energy.
Reclamation: United States
Department of Interior, Bureau of
Reclamation.
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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 rates. The steps
Western took to involve interested
parties in the rate process were:
1. An FRN was published on July 24,
2015 (80 FR 44100) 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 July 29, 2015, Western notified
all CAP customers and interested parties
of the rate adjustment and provided a
copy of the published FRN.
3. On August 27, 2015, Western held
a public information forum in Phoenix,
Arizona. Western explained the
proposed rates and potential changes to
the proposed rates, answered questions,
and provided handouts.
4. On September 24, 2015, Western
held a public comment forum in
Phoenix, Arizona, to give the public an
opportunity to comment for the record.
There were no comments received at
this forum.
5. Western created a CAP rate
adjustment Web site to provide
interested parties with information
about this rate adjustment process. The
Web site is located at https://
www.wapa.gov/regions/DSW/Rates/
Pages/central-arizona-rates.aspx
6. On October 6, 2015, Western
provided answers to a list of questions
concerning the proposed rates and
posted the answers on the CAP rate
adjustment Web site.
Project Description
The CAP is one of three related water
development projects that make up the
Colorado River Basin Project. The others
are the Dixie and the Upper Basin
projects. The CAP was developed for
Arizona and western New Mexico; the
Dixie Project for southeastern Utah; and
the Upper Basin Project for Colorado
and New Mexico.
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Congress authorized the Colorado
River Basin Project in 1968 to improve
water resources in the Colorado River
Basin. Segments of the 1968
authorization allowed Federal
participation in the Navajo Generating
Station (Navajo), which has three coalfired steam electric generating units
with a combined capacity of 2,250 MW.
Construction of the plant, located near
Lake Powell at Page, Arizona, began in
1970 and generation began in 1976.
The 24.3 percent Federal Share of
Navajo, or 546,750 kW, is used to power
the pumps that move Colorado River
water through CAP canals. Surplus
generation is currently marketed under
the Navajo Power Marketing Plan
adopted on Dec. 1, 1987. Surplus Navajo
short-term firm and non-firm
transmission service will be marketed at
the CAP 115/230-kV transmission rate
during the term of the rate schedules.
Existing and Provisional Rates
The existing rates for point-to-point
transmission service consist of a firm
rate and a non-firm rate. The existing
rate for firm point-to-point transmission
service under Rate Schedule CAP–FT2
is $13.56/kW-year. The existing rate for
non-firm point-to-point transmission
service under Rate Schedule CAP–NFT2
is 1.55 mills/kWh. The existing rates
under Rate Schedules CAP–FT2, CAP–
NFT2, and CAP–NITS2 expire
December 31, 2015.
The provisional rates will supersede
the existing rates and become effective
on an interim basis on the first day of
the first full billing period beginning on
or after January 1, 2016. The provisional
rate for firm point-to-point transmission
service under Rate Schedule CAP–FT3
is $14.88/kW-year. The provisional rate
for non-firm point-to-point transmission
service under Rate Schedule CAP–NFT3
is 1.70 mills/kWh. The provisional rates
will result in a rate increase of 10
percent when compared to the existing
rates. A comparison of the existing and
provisional rates for transmission
service follows:
COMPARISON OF EXISTING AND PROVISIONAL RATES CENTRAL ARIZONA PROJECT
Transmission service
Existing rates
Provisional rates
(effective 1/1/16)
Firm Point-to-Point ...................................
Non-firm Point-to-Point ............................
$13.56/kW-year .......................................
1.55 mills/kWh .........................................
$14.88/kW-year .......................................
1.70 mills/kWh .........................................
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Certification of Rates
Western’s Administrator certified that
the provisional rates for CAP
transmission service under Rate
Schedules CAP–FT3, CAP–NFT3, and
CAP–NITS3 are the lowest possible
rates consistent with sound business
principles. The provisional rates were
developed following administrative
policies and applicable laws.
Transmission Rate Discussion
According to Reclamation law,
Western must establish rates which
provide sufficient revenue to recover
annual O&M, purchase power,
transmission service and other costs,
interest expense, and repay investments.
Western calculates the rates each year to
determine if the existing rates will
provide adequate revenue to repay all
power system costs within the required
time. Repayment criteria are based on
existing law and applicable policies,
including DOE Order RA 6120.2. To
meet the cost recovery criteria outlined
in DOE Order RA 6120.2, a rate
calculation was completed to
demonstrate that sufficient revenues
will be collected under the provisional
rates to meet future obligations.
The existing rates are insufficient and
do not provide adequate revenue to
cover costs due primarily to the
replacement of the aging ED2-Saguaro
line. Construction of this line started in
2015, and the costs will be spread over
a 5-year period.
A secondary factor for the rate
increase is a decrease in projected sales
of long-term firm point-to-point
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transmission service. The provisional
rates include the reduction in the sales
forecast for 115/230-kV transmission
service over the 5-year cost evaluation
period.
Availability of Information
All brochures, studies, comments,
letters, memorandums, and other
documents that Western used to
develop the provisional rates are
available for inspection and copying at
the Desert Southwest Customer Service
Regional Office, Western Area Power
Administration, 615 South 43rd
Avenue, Phoenix, AZ 85009–5313.
Many of these documents and
supporting information are available on
Western’s Web site at https://
www.wapa.gov/regions/DSW/Rates/
Pages/central–arizona–rates.aspx.
RATEMAKING PROCEDURE
REQUIREMENTS
Environmental Compliance
In compliance with the National
Environmental Policy Act (NEPA) of
1969, (42 U.S.C. 4321, et seq.), Council
on Environmental Quality Regulations
(40 CFR parts 1500–1508), and DOE
NEPA Regulations (10 CFR part 1021),
Western has determined that this action
is categorically excluded from the
preparation of an environmental
assessment or an environmental impact
statement.
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10%
10%
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 interim rates confirmed,
approved, and placed into effect herein,
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 Rate
Schedules CAP–FT3, CAP–NFT3, and
CAP–NITS3 to become effective on the
first day of the first full-billing period
beginning on or after January 1, 2016,
and to remain in effect until FERC
confirms, approves, and places the rate
schedules in effect on a final basis
through December 31, 2020, or until the
rate schedules are superseded.
Dated: December 21, 2015
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy
Rate Schedule CAP–FT3
SCHEDULE 7 to Tariff
(Supersedes Schedule CAP–FT2)
Determination Under Executive Order
12866
Western has an exemption from
centralized regulatory review under
PO 00000
Change
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UNITED STATES DEPARTMENT OF
ENERGY WESTERN AREA POWER
ADMINISTRATION
2016, through December 31, 2020, or
until superseded by another rate
schedule, whichever occurs earlier.
DESERT SOUTHWEST CUSTOMER
SERVICE REGION CENTRAL
ARIZONA PROJECT
Applicable:
Effective:
The first day of the first full billing
period beginning on or after January 1,
A recalculated rate will go into effect
every January 1 based on the above
formula and updated financial and
operational data. Western will notify the
transmission customer annually of the
recalculated rate on or before December
1. Discounts may be offered from timeto-time in accordance with Western’s
Open Access Transmission Tariff.
Character and Conditions of Service:
Alternating current at 60 Hertz, threephase, delivered and metered at the
voltages and points of delivery
established by contract or service
agreement over the CAP 115/230-kV
transmission system.
Adjustment for Reactive Power:
There shall be no entitlement to
transfer of reactive kilovolt amperes at
delivery points, except when such
transfers may be mutually agreed upon
by the parties and contracting officer or
their authorized representatives.
Billing:
Billing determinants for the formula
rate above will be as specified in the
contract or service agreement. Billing
will occur monthly under the formula
rate.
Adjustment for Losses:
Losses incurred for service under this
rate schedule will be accounted for as
agreed to by the parties in accordance
with the contract or service agreement.
If losses are not fully provided by a
Transmission Customer, charges for
financial compensation may apply.
Unreserved Use:
Western will assess a charge for any
unreserved use of the transmission
system. Unreserved use occurs when a
customer uses transmission service that
it has not reserved or uses transmission
service in excess of its reserved
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The transmission customer will
compensate the Central Arizona Project
(CAP) each month for Reserved Capacity
under the applicable Firm Point-ToPoint Transmission Service Agreement
and the formula rate described herein.
Formula Rate:
capacity. Unreserved use may also
include a customer’s failure to curtail
transmission when requested.
The charge assessed for unreserved
use is two times the maximum
allowable rate for the service at issue as
follows: The penalty for a single hour of
unreserved use is based on the daily
short-term rate. The penalty for more
than one assessment of unreserved use
for any given duration (e.g., daily)
increases to next longest duration (e.g.,
weekly). The penalty for multiple
instances of unreserved use (e.g., more
than one hour) within a day is based on
the daily short-term rate. The penalty
for multiple instances of unreserved use
isolated to one calendar week is based
on the weekly short-term rate. The
penalty for multiple instances of
unreserved use during more than one
week in a calendar month is based on
the monthly short-term rate.
A customer that exceeds its reserved
capacity at any point of receipt or point
of delivery, or a customer that uses
transmission service at a point of receipt
or point of delivery that it has not
reserved, is required to pay for all
ancillary services provided by the
Western Area Lower Colorado (WALC)
Balancing Authority and associated
with the unreserved use. The customer
will pay for ancillary services based on
the amount of transmission service used
and not reserved.
Rate Schedule CAP–NFT3
SCHEDULE 7 to Tariff
(Supersedes Schedule CAP–NFT2)
PO 00000
UNITED STATES DEPARTMENT OF
ENERGY WESTERN AREA POWER
ADMINISTRATION
DESERT SOUTHWEST CUSTOMER
SERVICE REGION CENTRAL
ARIZONA PROJECT
NON-FIRM POINT-TO-POINT
TRANSMISSION SERVICE
Effective:
The first day of the first full billing
period beginning on or after January 1,
2016, through December 31, 2020, or
until superseded by another rate
schedule, whichever occurs earlier.
Applicable:
The transmission customer will
compensate the Central Arizona Project
(CAP) each month for Non-Firm PointTo-Point Transmission Service under
the applicable agreement and the
formula rate described herein.
Formula Rate:
Maximum Non-Firm Point-To-Point
Transmission Rate = Firm Point-ToPoint Transmission Rate
A recalculated rate will go into effect
every January 1 based on the above
formula and updated financial and
operational data. Western will notify the
transmission customer annually of the
recalculated rate on or before December
1. Discounts may be offered from timeto-time in accordance with Western’s
Open Access Transmission Tariff.
Character and Conditions of Service:
Alternating current at 60 Hertz, threephase, delivered and metered at the
voltages and points of delivery
established by contract or service
agreement over the CAP 115/230-kV
transmission system.
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EN29DE15.008
FIRM POINT-TO-POINT
TRANSMISSION SERVICE
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There shall be no entitlement to
transfer of reactive kilovolt amperes at
delivery points, except when such
transfers may be mutually agreed upon
by the parties and contracting officer or
their authorized representatives.
Navajo Transmission Service (500-kV):
Western will market excess
transmission service from the Navajo
(500-kV) portion of the CAP on a shortterm basis at the formula rate described
herein.
Billing:
Rate Schedule CAP–NITS3
ATTACHMENT H to Tariff
(Supersedes Schedule CAP–NITS2)
Billing determinants for the formula
rate above will be as specified in the
service agreement. Billing will occur
monthly under the formula rate.
UNITED STATES DEPARTMENT OF
ENERGY WESTERN AREA POWER
ADMINISTRATION
Adjustment for Losses:
Losses incurred for service under this
rate schedule will be accounted for as
agreed to by the parties in accordance
with the contract or service agreement.
If losses are not fully provided by a
transmission customer, charges for
financial compensation may apply.
A recalculated Annual Transmission
Revenue Requirement for Network
Integration Transmission Service will go
into effect every January 1 based on the
above formula and updated financial
and load data. Western will notify the
transmission customer annually of the
recalculated annual revenue
requirement on or before December 1.
Billing:
Billing determinants for the formula
rate above will be as specified in the
service agreement. Billing will occur
monthly under the formula rate.
Adjustment for Losses:
Losses incurred for service under this
rate schedule will be accounted for as
agreed to by the parties in accordance
with the contract or service agreement.
If losses are not fully provided by a
transmission customer, charges for
financial compensation may apply.
[FR Doc. 2015–32792 Filed 12–28–15; 8:45 am]
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BILLING CODE 6450–01–P
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2016, through December 31, 2020, or
until superseded by another rate
schedule, whichever occurs earlier.
Applicable:
The transmission customer will
compensate the Central Arizona Project
(CAP) each month for Network
Integration Transmission Service (NITS)
under the applicable agreement and the
formula rate described herein.
Formula Rate:
DESERT SOUTHWEST CUSTOMER
SERVICE REGION CENTRAL
ARIZONA PROJECT
NETWORK INTEGRATION
TRANSMISSION SERVICE
Effective:
The first day of the first full billing
period beginning on or after January 1,
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OECA–2011–0275; FRL–9940–
68–OEI]
Information Collection Request
Submitted to OMB for Review and
Approval; Comment Request; NESHAP
for Hydrochloric Acid Production
(Renewal)
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
The Environmental Protection
Agency has submitted an information
collection request (ICR), ‘‘NESHAP for
Hydrochloric Acid Production (40 CFR
part 63, subpart NNNNN) (Renewal)’’
(EPA ICR No. 2032.08, OMB Control No.
2060–0529) to the Office of Management
and Budget (OMB) for review and
approval in accordance with the
Paperwork Reduction Act (44 U.S.C.
3501 et seq.). This is a proposed
extension of the ICR, which is currently
approved through December 31, 2015.
Public comments were previously
requested via the Federal Register (80
FR 32116) on June 5, 2015 during a 60day comment period. This notice allows
for an additional 30 days for public
comments. A fuller description of the
ICR is given below, including its
estimated burden and cost to the public.
An Agency may not conduct or sponsor
SUMMARY:
PO 00000
Frm 00043
Fmt 4703
Sfmt 4703
and a person is not required to respond
to a collection of information unless it
displays a currently valid OMB control
number.
Additional comments may be
submitted on or before January 28, 2016.
DATES:
Submit your comments,
referencing Docket ID Number EPA–
HQ–OECA–2011–0275, to (1) EPA
online using www.regulations.gov (our
preferred method), by email to
docket.oeca@epa.gov, or by mail to: EPA
Docket Center, Environmental
Protection Agency, Mail Code 28221T,
1200 Pennsylvania Ave., NW.,
Washington, DC 20460, and (2) OMB via
email to oira_submission@omb.eop.gov.
Address comments to OMB Desk Officer
for EPA.
EPA’s policy is that all comments
received will be included in the public
docket without change including any
personal information provided, unless
the comment includes profanity, threats,
information claimed to be Confidential
Business Information (CBI) or other
information whose disclosure is
restricted by statute.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Patrick Yellin, Monitoring, Assistance,
and Media Programs Division, Office of
Compliance, Mail Code 2227A,
Environmental Protection Agency, 1200
Pennsylvania Ave., NW., Washington,
DC 20460; telephone number: (202)
E:\FR\FM\29DEN1.SGM
29DEN1
EN29DE15.009
Adjustment for Reactive Power:
Agencies
[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Notices]
[Pages 81310-81314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32792]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Central Arizona Project--Rate Order No. WAPA-172
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of final transmission service formula rates.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-172 and Rate Schedules CAP-FT3, CAP-NFT3, and CAP-NITS3,
placing transmission service formula rates for the Central Arizona
Project (CAP) of the Western Area Power Administration (Western) 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 replaced by other rates. The provisional rates will provide
sufficient revenue to pay all annual costs, including interest expense,
and repay required investment within the allowable periods.
DATES: Rate Schedules CAP-FT3, CAP-NFT3, and CAP-NITS3 are effective on
the first day of the first full billing period beginning on or after
January 1, 2016, and will be in effect until FERC confirms, approves,
and places the rate schedules in effect on a final basis through
December 31, 2020, or until the rate schedules are superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Vice President of
Power Marketing, Desert Southwest Customer Service Regional Office,
Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-
6457, (602) 605-2555, email jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: An FRN was published on July 24, 2015 (80 FR
44100) announcing the proposed rates for transmission service and
initiating a public consultation and comment period. On July 29, 2015,
Western notified all CAP customers and interested parties of the rate
adjustment and provided a copy of the published FRN. On August 27,
2015, Western held a public information forum in Phoenix, Arizona,
explained the proposed rates and potential changes to the proposed
rates, answered questions, and provided handouts. On September 24,
2015, Western held a public comment forum in Phoenix, Arizona, to give
the public an opportunity to comment for the record. No comments were
received at the forum.
Previous Rate Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2 for Rate
Order No. WAPA-124 \1\ were approved by FERC for a 5-year period
through December 31, 2010. These Rate Schedules were extended through
December 31, 2012, under Rate Order No. WAPA-153,\2\ and extended again
through December 31, 2015, under Rate Order No. WAPA-158.\3\ Rate
Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2 are being superseded by Rate
Schedules CAP-FT3, CAP-NFT3, and CAP-NITS3. Under Rate Schedule CAP-
FT2, the rate for firm point-to-point transmission service is $13.56
per kilowatt year (kW-year). The provisional rate for firm point-to-
point transmission service under Rate Schedule CAP-FT3 is $14.88/kW-
year, which represents an increase of 10 percent when compared with the
existing rate. Under Rate Schedule CAP-NFT2, the rate for non-firm
point-to-point transmission service is 1.55 mills per kilowatt hour
(mills/kWh). The provisional rate for non-firm point-to-point
transmission service under Rate Schedule CAP-NFT3 is 1.70 mills/kWh,
which represents an increase of 10 percent when compared with the
existing rate. There will be no changes to the rate formula under CAP-
NITS3.
---------------------------------------------------------------------------
\1\ Rate Order No. WAPA-124 was approved by FERC on a final
basis on June 29, 2006, in Docket No. EF06-5111-000 (115 FERC ]
62,326).
\2\ 76 FR 548 (January 5, 2011).
\3\ 78 FR 18335 (March 26, 2013).
---------------------------------------------------------------------------
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
[[Page 81311]]
(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 00-001.00F, and in
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm,
approve, and place provisional rates for transmission service under
Rate Order No. WAPA-172 into effect on an interim basis. New Rate
Schedules CAP-FT3, CAP-NFT3, and CAP-NITS3 will be submitted promptly
to FERC for confirmation and approval on a final basis.
Dated: December 21, 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 Central Arizona Project
Rate Order No. WAPA-172
ORDER CONFIRMING, APPROVING, AND PLACING THE CENTRAL ARIZONA PROJECT
TRANSMISSION SERVICE FORMULA RATES INTO EFFECT ON AN INTERIM BASIS
These rates were 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 Area Power Administration's (Western)
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. 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:
Administrator: Administrator for the Western Area Power
Administration.
Capacity: The electric capability of a transformer, transmission
circuit, or other equipment, expressed in kilowatts (kW).
CAP: Central Arizona Project, one of three related water
development projects that make up the Colorado River Basin Project.
Customer: An entity with a contract or service agreement that
receives service from Western's Desert Southwest Region.
DOE: United States Department of Energy.
DOE Order RA 6120.2: A DOE order outlining power marketing
administration financial reporting and ratemaking procedures.
Desert Southwest Region: The Desert Southwest Customer Service
Region of Western.
FERC: Federal Energy Regulatory Commission.
Firm: A type of product and/or service that is available at the
time requested by the customer.
Formula Rates: A rate which is based upon a formula calculated
yearly.
FRN: Federal Register notice.
Kilovolt (kV): Electrical unit of measure of potential difference
that equals 1,000 volts.
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.
Kilowatt month (kW-month): Electrical unit of the monthly amount of
capacity.
Kilowatt year (kW-year): Electrical unit of the yearly amount of
capacity.
Mill: A monetary denomination of the United States that equals one
tenth of a cent or one thousandth of a dollar.
Mills per kilowatt hour (mills/kWh): A unit of charge.
Non-firm: A type of product and/or service not always available at
the time requested by the customer.
O&M: Operation and Maintenance.
Proposed Rate: A rate that has been recommended by Western to the
Deputy Secretary of Energy for approval.
Provisional Rate: A rate that has been confirmed, approved, and
placed into effect on an interim basis by the Deputy Secretary of
Energy.
Reclamation: United States Department of Interior, Bureau of
Reclamation.
Western: Western Area Power Administration.
Effective Date
The new provisional rates will take effect on the first day of the
first full billing period beginning on or after January 1, 2016, and
will remain in effect until FERC confirms, approves, and places the
rate schedules in effect on a final basis through December 31, 2020, or
until the rate schedules are superseded.
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 rates. The steps Western took to involve interested
parties in the rate process were:
1. An FRN was published on July 24, 2015 (80 FR 44100) 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 July 29, 2015, Western notified all CAP customers and
interested parties of the rate adjustment and provided a copy of the
published FRN.
3. On August 27, 2015, Western held a public information forum in
Phoenix, Arizona. Western explained the proposed rates and potential
changes to the proposed rates, answered questions, and provided
handouts.
4. On September 24, 2015, Western held a public comment forum in
Phoenix, Arizona, to give the public an opportunity to comment for the
record. There were no comments received at this forum.
5. Western created a CAP rate adjustment Web site to provide
interested parties with information about this rate adjustment process.
The Web site is located at https://www.wapa.gov/regions/DSW/Rates/Pages/central-arizona-rates.aspx
6. On October 6, 2015, Western provided answers to a list of
questions concerning the proposed rates and posted the answers on the
CAP rate adjustment Web site.
Project Description
The CAP is one of three related water development projects that
make up the Colorado River Basin Project. The others are the Dixie and
the Upper Basin projects. The CAP was developed for Arizona and western
New Mexico; the Dixie Project for southeastern Utah; and the Upper
Basin Project for Colorado and New Mexico.
[[Page 81312]]
Congress authorized the Colorado River Basin Project in 1968 to
improve water resources in the Colorado River Basin. Segments of the
1968 authorization allowed Federal participation in the Navajo
Generating Station (Navajo), which has three coal-fired steam electric
generating units with a combined capacity of 2,250 MW. Construction of
the plant, located near Lake Powell at Page, Arizona, began in 1970 and
generation began in 1976.
The 24.3 percent Federal Share of Navajo, or 546,750 kW, is used to
power the pumps that move Colorado River water through CAP canals.
Surplus generation is currently marketed under the Navajo Power
Marketing Plan adopted on Dec. 1, 1987. Surplus Navajo short-term firm
and non-firm transmission service will be marketed at the CAP 115/230-
kV transmission rate during the term of the rate schedules.
Existing and Provisional Rates
The existing rates for point-to-point transmission service consist
of a firm rate and a non-firm rate. The existing rate for firm point-
to-point transmission service under Rate Schedule CAP-FT2 is $13.56/kW-
year. The existing rate for non-firm point-to-point transmission
service under Rate Schedule CAP-NFT2 is 1.55 mills/kWh. The existing
rates under Rate Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2 expire
December 31, 2015.
The provisional rates will supersede the existing rates and become
effective on an interim basis on the first day of the first full
billing period beginning on or after January 1, 2016. The provisional
rate for firm point-to-point transmission service under Rate Schedule
CAP-FT3 is $14.88/kW-year. The provisional rate for non-firm point-to-
point transmission service under Rate Schedule CAP-NFT3 is 1.70 mills/
kWh. The provisional rates will result in a rate increase of 10 percent
when compared to the existing rates. A comparison of the existing and
provisional rates for transmission service follows:
Comparison of Existing and Provisional Rates Central Arizona Project
----------------------------------------------------------------------------------------------------------------
Provisional rates
Transmission service Existing rates (effective 1/1/16) Change
----------------------------------------------------------------------------------------------------------------
Firm Point-to-Point..................... $13.56/kW-year............ $14.88/kW-year............ 10%
Non-firm Point-to-Point................. 1.55 mills/kWh............ 1.70 mills/kWh............ 10%
----------------------------------------------------------------------------------------------------------------
Certification of Rates
Western's Administrator certified that the provisional rates for
CAP transmission service under Rate Schedules CAP-FT3, CAP-NFT3, and
CAP-NITS3 are the lowest possible rates consistent with sound business
principles. The provisional rates were developed following
administrative policies and applicable laws.
Transmission Rate Discussion
According to Reclamation law, Western must establish rates which
provide sufficient revenue to recover annual O&M, purchase power,
transmission service and other costs, interest expense, and repay
investments. Western calculates the rates each year to determine if the
existing rates will provide adequate revenue to repay all power system
costs within the required time. Repayment criteria are based on
existing law and applicable policies, including DOE Order RA 6120.2. To
meet the cost recovery criteria outlined in DOE Order RA 6120.2, a rate
calculation was completed to demonstrate that sufficient revenues will
be collected under the provisional rates to meet future obligations.
The existing rates are insufficient and do not provide adequate
revenue to cover costs due primarily to the replacement of the aging
ED2-Saguaro line. Construction of this line started in 2015, and the
costs will be spread over a 5-year period.
A secondary factor for the rate increase is a decrease in projected
sales of long-term firm point-to-point transmission service. The
provisional rates include the reduction in the sales forecast for 115/
230-kV transmission service over the 5-year cost evaluation period.
Availability of Information
All brochures, studies, comments, letters, memorandums, and other
documents that Western used to develop the provisional rates are
available for inspection and copying at the Desert Southwest Customer
Service Regional Office, Western Area Power Administration, 615 South
43rd Avenue, Phoenix, AZ 85009-5313. Many of these documents and
supporting information are available on Western's Web site at https://www.wapa.gov/regions/DSW/Rates/Pages/central-arizona-rates.aspx.
RATEMAKING PROCEDURE REQUIREMENTS
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969, (42 U.S.C. 4321, et seq.), Council on Environmental Quality
Regulations (40 CFR parts 1500-1508), and DOE NEPA Regulations (10 CFR
part 1021), Western has determined that this action is categorically
excluded from the preparation of an environmental assessment or an
environmental impact statement.
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 interim rates confirmed, approved, and placed into effect
herein, 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 Rate Schedules CAP-FT3, CAP-
NFT3, and CAP-NITS3 to become effective on the first day of the first
full-billing period beginning on or after January 1, 2016, and to
remain in effect until FERC confirms, approves, and places the rate
schedules in effect on a final basis through December 31, 2020, or
until the rate schedules are superseded.
Dated: December 21, 2015
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy
Rate Schedule CAP-FT3
SCHEDULE 7 to Tariff
(Supersedes Schedule CAP-FT2)
[[Page 81313]]
UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION
DESERT SOUTHWEST CUSTOMER SERVICE REGION CENTRAL ARIZONA PROJECT
FIRM POINT-TO-POINT TRANSMISSION SERVICE
Effective:
The first day of the first full billing period beginning on or
after January 1,
2016, through December 31, 2020, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable:
The transmission customer will compensate the Central Arizona
Project (CAP) each month for Reserved Capacity under the applicable
Firm Point-To-Point Transmission Service Agreement and the formula rate
described herein.
Formula Rate:
[GRAPHIC] [TIFF OMITTED] TN29DE15.008
A recalculated rate will go into effect every January 1 based on
the above formula and updated financial and operational data. Western
will notify the transmission customer annually of the recalculated rate
on or before December 1. Discounts may be offered from time-to-time in
accordance with Western's Open Access Transmission Tariff.
Character and Conditions of Service:
Alternating current at 60 Hertz, three-phase, delivered and metered
at the voltages and points of delivery established by contract or
service agreement over the CAP 115/230-kV transmission system.
Adjustment for Reactive Power:
There shall be no entitlement to transfer of reactive kilovolt
amperes at delivery points, except when such transfers may be mutually
agreed upon by the parties and contracting officer or their authorized
representatives.
Billing:
Billing determinants for the formula rate above will be as
specified in the contract or service agreement. Billing will occur
monthly under the formula rate.
Adjustment for Losses:
Losses incurred for service under this rate schedule will be
accounted for as agreed to by the parties in accordance with the
contract or service agreement. If losses are not fully provided by a
Transmission Customer, charges for financial compensation may apply.
Unreserved Use:
Western will assess a charge for any unreserved use of the
transmission system. Unreserved use occurs when a customer uses
transmission service that it has not reserved or uses transmission
service in excess of its reserved capacity. Unreserved use may also
include a customer's failure to curtail transmission when requested.
The charge assessed for unreserved use is two times the maximum
allowable rate for the service at issue as follows: The penalty for a
single hour of unreserved use is based on the daily short-term rate.
The penalty for more than one assessment of unreserved use for any
given duration (e.g., daily) increases to next longest duration (e.g.,
weekly). The penalty for multiple instances of unreserved use (e.g.,
more than one hour) within a day is based on the daily short-term rate.
The penalty for multiple instances of unreserved use isolated to one
calendar week is based on the weekly short-term rate. The penalty for
multiple instances of unreserved use during more than one week in a
calendar month is based on the monthly short-term rate.
A customer that exceeds its reserved capacity at any point of
receipt or point of delivery, or a customer that uses transmission
service at a point of receipt or point of delivery that it has not
reserved, is required to pay for all ancillary services provided by the
Western Area Lower Colorado (WALC) Balancing Authority and associated
with the unreserved use. The customer will pay for ancillary services
based on the amount of transmission service used and not reserved.
Rate Schedule CAP-NFT3
SCHEDULE 7 to Tariff
(Supersedes Schedule CAP-NFT2)
UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION
DESERT SOUTHWEST CUSTOMER SERVICE REGION CENTRAL ARIZONA PROJECT
NON-FIRM POINT-TO-POINT TRANSMISSION SERVICE
Effective:
The first day of the first full billing period beginning on or
after January 1, 2016, through December 31, 2020, or until superseded
by another rate schedule, whichever occurs earlier.
Applicable:
The transmission customer will compensate the Central Arizona
Project (CAP) each month for Non-Firm Point-To-Point Transmission
Service under the applicable agreement and the formula rate described
herein.
Formula Rate:
Maximum Non-Firm Point-To-Point Transmission Rate = Firm Point-To-Point
Transmission Rate
A recalculated rate will go into effect every January 1 based on the
above formula and updated financial and operational data. Western will
notify the transmission customer annually of the recalculated rate on
or before December 1. Discounts may be offered from time-to-time in
accordance with Western's Open Access Transmission Tariff.
Character and Conditions of Service:
Alternating current at 60 Hertz, three-phase, delivered and metered
at the voltages and points of delivery established by contract or
service agreement over the CAP 115/230-kV transmission system.
[[Page 81314]]
Adjustment for Reactive Power:
There shall be no entitlement to transfer of reactive kilovolt
amperes at delivery points, except when such transfers may be mutually
agreed upon by the parties and contracting officer or their authorized
representatives.
Billing:
Billing determinants for the formula rate above will be as
specified in the service agreement. Billing will occur monthly under
the formula rate.
Adjustment for Losses:
Losses incurred for service under this rate schedule will be
accounted for as agreed to by the parties in accordance with the
contract or service agreement. If losses are not fully provided by a
transmission customer, charges for financial compensation may apply.
Navajo Transmission Service (500-kV):
Western will market excess transmission service from the Navajo
(500-kV) portion of the CAP on a short-term basis at the formula rate
described herein.
Rate Schedule CAP-NITS3
ATTACHMENT H to Tariff
(Supersedes Schedule CAP-NITS2)
UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION
DESERT SOUTHWEST CUSTOMER SERVICE REGION CENTRAL ARIZONA PROJECT
NETWORK INTEGRATION TRANSMISSION SERVICE
Effective:
The first day of the first full billing period beginning on or
after January 1, 2016, through December 31, 2020, or until superseded
by another rate schedule, whichever occurs earlier.
Applicable:
The transmission customer will compensate the Central Arizona
Project (CAP) each month for Network Integration Transmission Service
(NITS) under the applicable agreement and the formula rate described
herein.
Formula Rate:
[GRAPHIC] [TIFF OMITTED] TN29DE15.009
A recalculated Annual Transmission Revenue Requirement for Network
Integration Transmission Service will go into effect every January 1
based on the above formula and updated financial and load data. Western
will notify the transmission customer annually of the recalculated
annual revenue requirement on or before December 1.
Billing:
Billing determinants for the formula rate above will be as
specified in the service agreement. Billing will occur monthly under
the formula rate.
Adjustment for Losses:
Losses incurred for service under this rate schedule will be
accounted for as agreed to by the parties in accordance with the
contract or service agreement. If losses are not fully provided by a
transmission customer, charges for financial compensation may apply.
[FR Doc. 2015-32792 Filed 12-28-15; 8:45 am]
BILLING CODE 6450-01-P