Desert Southwest Region Transmission, Transmission Losses, Unreserved Use Penalties, and Ancillary Services-Rate Order No. WAPA-175, 58497-58510 [2016-20397]

Download as PDF Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices withdrawal beyond the current withdrawal expiration date. As part of the withdrawal extension, the Air Force proposes to continue military operations on the NTTR’s existing 2,949,603 acres of land. In addition to extending the existing land withdrawal, the Air Force is also proposing to withdraw up to an additional 301,507 acres to improve the range’s capacity to support military testing and training. The alternatives being evaluated in the LEIS include: (1) Extending the existing land withdrawal and management of the NTTR (Status Quo); (2) extending the existing land withdrawal and providing the Air Force with increased access for military activities in the South Range of the NTTR; (3) Alternative 1 or 2 and expanding the existing withdrawal by including up to 301,507 additional acres, via three sub-alternatives; (4) establishing the time period of the withdrawal as either 20 years, 50 years, or as an indefinite military withdrawal; and (5) the No Action alternative which includes returning NTTR lands to the public domain, through the Department of the Interior. The alternatives structure allows for combining elements of alternatives in an additive fashion. For example, Alternative 2, could be selected along with sub-alternatives of Alternatives 3 (an option for expansion) and 4 (option for duration) as part of the Air Force’s recommendation to Congress for the future military withdrawal. Within the framework of these alternatives, the LEIS will support Congressional action by identifying and evaluating potential impacts to land use, airspace, safety, noise, hazardous materials and solid waste, earth resources, water resources, air quality, transportation, wilderness and wilderness study areas, cultural resources, biological resources, socioeconomics, and environmental justice. Henry Williams, Acting Air Force Federal Register Officer. [FR Doc. 2016–20401 Filed 8–24–16; 8:45 am] asabaliauskas on DSK3SPTVN1PROD with NOTICES BILLING CODE 5001–10–P VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 DEPARTMENT OF EDUCATION [Docket No. ED–2016–ICCD–0068] Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Carl D. Perkins Career and Technical Education Improvement Act of 2006 (Pub. L. 109–270) State Plan Guide Office of Career, Technical, and Adult Education (OCTAE), Department of Education (ED). ACTION: Notice. AGENCY: In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 3501 et seq.), ED is proposing an extension of an existing information collection. DATES: Interested persons are invited to submit comments on or before September 26, 2016. ADDRESSES: To access and review all the documents related to the information collection listed in this notice, please use http://www.regulations.gov by searching the Docket ID number ED– 2016–ICCD–0068. Comments submitted in response to this notice should be submitted electronically through the Federal eRulemaking Portal at http:// www.regulations.gov by selecting the Docket ID number or via postal mail, commercial delivery, or hand delivery. Please note that comments submitted by fax or email and those submitted after the comment period will not be accepted. Written requests for information or comments submitted by postal mail or delivery should be addressed to the Director of the Information Collection Clearance Division, U.S. Department of Education, 400 Maryland Avenue SW., LBJ, Room 2E–349, Washington, DC 20202–4537. FOR FURTHER INFORMATION CONTACT: For specific questions related to collection activities, please contact Braden Goetz, 202–245–7405. SUPPLEMENTARY INFORMATION: The Department of Education (ED), in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Department assess the impact of its information collection requirements and minimize the public’s reporting burden. It also helps the public understand the Department’s information collection requirements and provide the requested data in the desired format. ED is soliciting comments on the proposed SUMMARY: PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 58497 information collection request (ICR) that is described below. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records. Title of Collection: Carl D. Perkins Career and Technical Education Improvement Act of 2006 (P.L. 109–270) State Plan Guide. OMB Control Number: 1830–0029. Type of Review: An extension of an existing information collection. Respondents/Affected Public: State, Local, and Tribal Governments. Total Estimated Number of Annual Responses: 56. Total Estimated Number of Annual Burden Hours: 2,240. Abstract: This information collection solicits from all eligible States and outlying areas the State plans required under Title I of the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins IV) (P.L. 109–270), as well as, for those States and outlying areas that fail to meet 90 percent of their performance levels for an indicator for three consecutive years, periodic reports on their progress in implementing the improvement plans required by section 123(a)(1) of Perkins IV. Dated: August 22, 2016. Tomakie Washington, Acting Director, Information Collection Clearance Division, Office of the Chief Privacy Officer, Office of Management. [FR Doc. 2016–20370 Filed 8–24–16; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY Western Area Power Administration Desert Southwest Region Transmission, Transmission Losses, Unreserved Use Penalties, and Ancillary Services—Rate Order No. WAPA–175 Western Area Power Administration, DOE. ACTION: Notice of Final Formula Rates for Transmission and Ancillary Services. AGENCY: E:\FR\FM\25AUN1.SGM 25AUN1 58498 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices The Deputy Secretary of Energy has confirmed and approved Rate Order No. WAPA–175 and Rate Schedules PD–NTS4 and INT–NTS4, placing formula rates for Network Integration Transmission Service (Network) on the Parker-Davis Project (P–DP) and Pacific Northwest-Pacific Southwest Intertie Project (Intertie) of the Western Area Power Administration (WAPA) into effect on an interim basis. The Deputy Secretary also confirmed and approved Rate Schedules DSW– TL1, DSW–UU1, DSW–SD4, DSW–RS4, DSW–FR4, DSW–EI4, DSW–SPR4, DSW–SUR4, and DSW–GI2, placing formula rates for transmission losses, unreserved use penalties, and ancillary services from WAPA’s Desert Southwest Region (DSW) and Western Area Lower Colorado Balancing Authority (WALC) into effect on an interim basis. The provisional formula rates will provide sufficient revenue to pay all annual costs, including interest expense, and repay applicable investments within the allowable periods. SUMMARY: Rate Schedules PD–NTS4, INT– NTS4, DSW–TL1, DSW–UU1, DSW– SD4, DSW–RS4, DSW–FR4, DSW–EI4, DSW–SPR4, DSW–SUR4, and DSW–GI2 are effective on the first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, pending approval by the Federal Energy Regulatory Commission (FERC) on a final basis or until superseded. DATES: Mr. Ronald E. Moulton, Regional Manager, Desert Southwest Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005–6457, (602) 605– 2453, or Mr. Scott Lund, Rates Manager, Desert Southwest Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005–6457, (602) 605– 2442, email slund@wapa.gov. FOR FURTHER INFORMATION CONTACT: WAPA’s DSW published a Federal Register notice on February 3, 2016 (81 FR 5741), announcing the proposed formula rates, initiating a public consultation and comment period, and setting forth the date and location of public information and comment forums. On February 4, 2016, customers and interested parties were provided a copy of the published notice. WAPA’s DSW held both forums in Phoenix, Arizona, on March 30, 2016. The previous Rate Schedules PD– NTS3, INT–NTS3, DSW–SD3, DSW– RS3, DSW–FR3, DSW–EI3, DSW–SPR3, DSW–SUR3, and DSW–GI1 for Rate Order No. WAPA–151 were approved by FERC for a 5-year period through asabaliauskas on DSK3SPTVN1PROD with NOTICES SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 September 30, 2016.1 Several of these rate schedules contain formula rates that were calculated each year to include the most recent financial, load, and schedule information, as applicable. The new rate schedules continue this approach. Transmission Services Rate Schedules PD–NTS4 and INT– NTS4 for Network on the P–DP and Intertie are based on a revenue requirement that recovers the costs for providing transmission service. This includes the costs for scheduling, system control, and dispatch service needed to provide the transmission service. Rate Schedule DSW–TL1 for Transmission Losses is a new rate schedule that provides for the recovery of losses associated with transmission service. Previously, losses were addressed in the transmission service rate schedules for each project administered by WAPA’s DSW. Rate Schedule DSW–UU1 for Unreserved Use Penalties is also a new rate schedule that provides for a penalty, in addition to the usual charge for transmission service, for the use of transmission capacity that has not been reserved or has been used in excess of the amount reserved. Previously, penalty provisions for unauthorized use were included in the transmission service rate schedules for each project administered by WAPA’s DSW. Ancillary Services DSW provides seven ancillary services pursuant to WAPA’s Open Access Transmission Tariff (OATT). These services include: (1) Scheduling, System Control, and Dispatch (DSW– SD4); (2) Reactive Supply and Voltage Control (DSW–RS4); (3) Regulation and Frequency Response (DSW–FR4); (4) Energy Imbalance (DSW–EI4); (5) Spinning Reserve (DSW–SPR4); (6) Supplemental Reserve (DSW–SUR4), and (7) Generator Imbalance (DSW– GI2). Changes were made to the formula rates for Regulation and Frequency Response, Energy Imbalance, and Generator Imbalance. The formula rate for Regulation and Frequency Response now includes the application of variable capacity multipliers to the installed capacity of variable energy resources. The formula rates for Energy Imbalance and Generator Imbalance now have the same bandwidth structure for on-peak and off-peak hours. No changes were 1 Rate Order No. WAPA–151 was approved by FERC on a final basis on March 5, 2012, in Docket No. EF11–14–000 (138 FERC ¶ 62,198). PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 made to the formula rates for the other ancillary services. Minor editorial changes were made to rate schedule language to provide clarification and make them more uniform and consistent. 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 the Administrator of WAPA; (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. Federal rules (10 CFR part 903) govern Department of Energy procedures for public participation in power and transmission rate adjustments. 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 Rate Order No. WAPA–175, which provides the formula rates for DSW transmission, transmission losses, unreserved use penalties, and ancillary services into effect on an interim basis. The new Rate Schedules PD–NTS4, INT–NTS4, DSW– TL1, DSW–UU1, DSW–SD4, DSW–RS4, DSW–FR4, DSW–EI4, DSW–SPR4, DSW–SUR4, and DSW–GI2 will be submitted promptly to FERC for confirmation and approval on a final basis. Dated: August 18, 2016. Elizabeth Sherwood-Randall, Deputy Secretary of Energy. DEPARTMENT OF ENERGY DEPUTY SECRETARY In the matter of: Western Area Power Administration, Desert Southwest Region, Rate Adjustment for Transmission Service, Transmission Losses, Unreserved Use Penalties, and Ancillary Services. Rate Order No. WAPA–175 ORDER CONFIRMING, APPROVING, AND PLACING FORMULA RATES FOR TRANSMISSION SERVICE, TRANSMISSION LOSSES, UNRESERVED USE PENALTIES, AND ANCILLARY SERVICES INTO EFFECT ON AN INTERIM BASIS The formula rates set forth in this order are established pursuant to 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 E:\FR\FM\25AUN1.SGM 25AUN1 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and other acts that specifically apply to the projects involved. By Delegation Order No. 00-037.00A, effective October 25, 2013, the Secretary Balancing Authority (BA) ...................... Balancing Authority (BA) Area ............. DOE ...................................................... DSW ..................................................... FERC .................................................... Kilowatt (kW) ........................................ Megawatt (MW) .................................... Network ................................................ OATT .................................................... Open Access Same-Time Informaton System (OASIS). Transmission Service Provider (TSP) .. VAR ...................................................... VER ...................................................... WALC ................................................... WAPA ................................................... The provisional formula rates are effective on the first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, pending approval by FERC on a final basis or until superseded. asabaliauskas on DSK3SPTVN1PROD with NOTICES Public Notice and Comment WAPA followed the Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in developing these formula rates and schedules. WAPA took the following steps to involve the public in the rate adjustment process: 1. On July 2, 2015, WAPA notified DSW customers and interested parties by email of an informal meeting and posted this notice on its public website. On August 10, 2015, WAPA held an informal meeting to discuss DSW’s rate proposals for transmission and ancillary services. 2. WAPA published a Federal Register notice on February 3, 2016 (81 FR 5741), announcing the proposed formula rates, initiating the 90-day public consultation and comment period, setting forth the date and location of public information and public comment forums, and outlining the procedures for public participation. 3. On February 4, 2016, WAPA sent DSW customers and interested parties a copy of the notice. 18:54 Aug 24, 2016 the Federal Energy Regulatory Commission (FERC). Federal rules (10 CFR part 903) govern DOE procedures for public participation in power and transmission rate adjustments. Acronyms and Definitions As used in this Rate Order, the following acronyms and definitions apply: The responsible entity that integrates resource plans ahead of time, maintains load-interchange-generation balance within a Balancing Authority Area, and supports interconnection frequency in real-time. The collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority. United States Department of Energy. Desert Southwest Region. Federal Energy Regulatory Commission. Electrical unit of capacity equal to 1,000 watts. Electrical unit of capacity equal to 1,000 kW or 1,000,000 watts. Network Integration Transmission Service. WAPA’s revised Open Access Transmission Tariff, effective May 13, 2013. An electronic posting system that a service provider maintains for transmission access data that allows users to view information simultaneously. Any utility that owns, operates, or controls facilities used to transmit electric energy. Volt-Ampere Reactive, a unit by which reactive power is expressed. Variable energy resources. Western Area Lower Colorado Balancing Authority. Western Area Power Administration. Effective Date VerDate Sep<11>2014 of Energy delegated: (1) the authority to develop power and transmission rates to the Administrator of the Western Area Power Administration (WAPA); (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 58499 Jkt 238001 4. On March 30, 2016, WAPA held a public information forum in Phoenix, Arizona. WAPA’s DSW representatives explained the need for the formula rate adjustment and proposed changes to the formula rates, answered questions, and provided presentation handouts. 5. On March 30, 2016, following the public information forum, WAPA held a public comment forum in Phoenix, Arizona, to provide customers and interested parties an opportunity to comment for the record. 6. WAPA established a public website to post information about this rate adjustment. The website is located at https://www.wapa.gov/regions/DSW/ Rates/Pages/ancillary-rates.aspx. Comments No oral comments were made at the public comment forum. WAPA received one written comment during the consultation and comment period. A written comment was received from Arizona Generation and Transmission Cooperatives, Benson, Arizona. The comment has been considered in preparing this Rate Order Project Descriptions WAPA’s DSW provides ancillary services through WALC, which encompasses the projects within its marketing area—Boulder Canyon Project (BCP), Parker-Davis Project (P–DP), Central Arizona Project (CAP), and the Pacific Northwest-Pacific Southwest PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 Intertie Project (Intertie). Network is offered on the P–DP, CAP, and Intertie. BCP Hoover Dam, authorized by the Boulder Canyon Project Act (45 Stat. 1057, December 21, 1928), sits on the Colorado River along the ArizonaNevada border. Hoover Dam’s power plant has 19 generating units (two for plant use) and an installed capacity of 2,078,800 kW (4,800 kW for plant use). High-voltage transmission lines and substations make it possible to deliver this power to southern Nevada, Arizona, and southern California. P–DP P–DP was formed by consolidating two projects, Davis Dam and Parker Dam, under terms of the Act of May 28, 1954 (68 Stat. 143). Davis Dam’s power plant has five generating units and an installed capacity of 255,000 kW. Parker Dam’s power plant has four generating units and an installed capacity of 120,000 kW. P–DP is operated in conjunction with the other Federal hydroelectric generation facilities in the Colorado River Basin. The project also includes 1,535 circuit miles of transmission lines in Arizona, southern Nevada, and along the Colorado River in California. CAP Congress authorized CAP in 1968 to improve water resources in the Colorado River Basin (43 U.S.C. 1501). The E:\FR\FM\25AUN1.SGM 25AUN1 58500 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices Intertie consists of two parts, a northern portion and a southern portion. The northern portion is administered by WAPA’s Sierra Nevada Region. The southern portion is administered by WAPA’s DSW and consists of 865 circuit miles of extra high-voltage and 108 circuit miles of high-voltage transmission lines in Arizona, southern Nevada, and southern California. SUR3, and DSW–GI1 expire on September 30, 2016. Several of these rate schedules contain formula rates that are calculated each fiscal year to include the most recent financial, load, and schedule information, as applicable. The new rate schedules continue with this approach. Intertie Existing and Provisional Formula Rates Intertie was authorized by Section 8 of the Pacific Northwest Power Marketing Act of August 31, 1964 (16 U.S.C. 837g). WAPA’s portion of the The existing formula rates contained in Rate Schedules PD–NTS3, INT– NTS3, DSW–SD3, DSW–RS3, DSW– FR3, DSW–EI3, DSW–SPR3, DSW– The existing formula rates for Network on the P–DP and Intertie under Rate Schedules PD–NTS3 and INT– NTS3, respectively, are the following: The provisional formula rates for Network on the P–DP and Intertie under Rate Schedules PD–NTS4 and INT– NTS4 remain the same without adjustment. existing losses provisions in the separate transmission rate schedules for each project. The current loss percentages and their application remain unchanged. Transmission Losses Unreserved Use Penalties Scheduling, System Control, and Dispatch Rate Schedule DSW–TL1 is a new schedule that consolidates the provisions for transmission losses. This rate schedule will supersede the Rate Schedule DSW–UU1 is a new schedule that unifies and consolidates the penalty provisions for unreserved use. This rate schedule will supersede The existing formula rate for this service under Rate Schedule DSW–SD3 is the following: The provisional formula rate for this service under Rate Schedule DSW–SD4 remains the same without adjustment. Reactive Supply and Voltage Control The provisional formula rate for this service under Rate Schedule DSW–RS4 remains the same without adjustment. Regulation and Frequency Response Network the existing unauthorized or unreserved use provisions in the separate transmission rate schedules for each project. The existing formula rate for this service under Rate Schedule DSW–RS3 is the following: EN25AU16.029</GPH> EN25AU16.030</GPH> The existing formula rate for this service under Rate Schedule DSW–FR3 is the following: VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 E:\FR\FM\25AUN1.SGM 25AUN1 EN25AU16.028</GPH> asabaliauskas on DSK3SPTVN1PROD with NOTICES legislation also authorized Federal participation in the Navajo Generating Station, which has three coal-fired steam electric generating units with a combined capacity of 2,250,000 kW. The 24.3 percent Federal share (546,750 kW) of the Navajo Generating Station is used to power the pumps that move Colorado River water through the CAP canals. Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices 58501 Energy Imbalance The existing formula rate for this service under Rate Schedule DSW–EI3 is the following: Deviation bands Settlements On-Peak Hours Deviations less than or equal to ±1.5% (with a 4 MW minimum) of metered load. Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10 MW) of metered load. Deviations greater than ±7.5% (or 10 MW) of metered load ................. 100% (no penalty). 90% for over-deliveries and 110% for under-deliveries (10% penalty). 75% for over-deliveries and 125% for under-deliveries (25% penalty). Off-Peak Hours Deviations less than or equal to +7.5% (with a 2 MW minimum) of metered load. Deviations less than or equal to ¥3.0% (with a 5 MW minimum) of metered load. 60% for over-delivery (40% penalty). 110% for under-delivery (10% penalty). The provisional formula rate for this service under Rate Schedule DSW–EI4 is the following Deviation bands Settlements On-Peak Hours No Changes ............................................................................................ No Changes. Deviations less than or equal to ±1.5% (with a 4 MW minimum) of metered load. Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10 MW) of metered load. Deviations greater than ±7.5% (or 10 MW) of metered load ................. VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 PO 00000 Frm 00034 Fmt 4703 100% (no penalty). 75% for over-deliveries (25% penalty), 110% for under-deliveries (10% penalty). 60% for over-deliveries (40% penalty), 125% for under-deliveries (25% penalty). Sfmt 4703 E:\FR\FM\25AUN1.SGM 25AUN1 EN25AU16.031</GPH> asabaliauskas on DSK3SPTVN1PROD with NOTICES Off-Peak Hours 58502 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices Operating Reserves—Spinning and Supplemental The existing formula rates for these services under Rate Schedules DSW– SPR3 and DSW–SUR3 are the following: The provisional formula rates for these services under Rate Schedules DSW–SPR4 and DSW–SUR4 remain the same without adjustment. Generator Imbalance The existing formula rate for this service under Rate Schedule DSW–GI1 is the following: Deviation bands Settlements On-Peak Hours Deviations less than or equal to ±1.5% (with a 4 MW minimum) of metered generation. Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10 MW) of metered generation. Deviations greater than ±7.5% (or 10 MW) of metered generation ....... 100% (no penalty). 90% for over-deliveries and 110%, for under-deliveries (10% penalty). 75% for over-deliveries and 125%, for under-deliveries (25% penalty). Off-Peak Hours Deviations less than or equal to +7.5% (with a 2 MW minimum) of metered generation. Deviations less than or equal to ¥3.0% (with a 5 MW minimum) of metered generation. 60% for over-delivery (40% penalty). 110% for under-delivery (10% penalty). The provisional formula rate for this service under Rate Schedule DSW–GI2 is the following: Deviation bands Settlements On-Peak Hours No Changes ............................................................................................ No Changes. Off-Peak Hours 100% (no penalty). 75% for over-deliveries (25% penalty), 110% for under-deliveries (10% penalty). 60% for over-deliveries (40% penalty), 125% for under-deliveries (25% penalty). asabaliauskas on DSK3SPTVN1PROD with NOTICES Certification of Rates Transmission Services Discussion WAPA’s Administrator certified that the provisional formula rates for Network, transmission losses, unreserved use penalties, and ancillary services under Rate Schedules PD– NTS4, INT–NTS4, DSW–TL1, DSW– UU1, DSW–SD4, DSW–RS4, DSW–FR4, DSW–EI4, DSW–SPR4, DSW–SUR4, and DSW–GI2 result in the lowest possible rates consistent with sound business principles. The provisional formula rates were developed following administrative policies and applicable laws. Network VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 DSW offers Network to eligible customers, subject to the provisions in WAPA’s OATT, from the P–DP, Intertie, and CAP transmission systems. This service includes the transmission of energy to points of delivery on the P– DP, Intertie, and CAP interconnected high-voltage systems, which includes transmission lines, substations, communication equipment and related facilities. The provisional formula rates only apply to Network from the P–DP and Intertie transmission systems. The formula rate for Network from the CAP PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 transmission system was approved under Rate Order No. WAPA–172 and became effective on January 1, 2016.2 The formula rate for Network from CAP is identical to the provisional formula rates for P–DP and Intertie. The monthly charge for Network is the product of the customer’s load-ratio share and one-twelfth (1⁄12) of the annual revenue requirement for the appropriate transmission system. The load-ratio share is equal to the customer’s hourly load coincident with 2 Rate Order No. WAPA–172 was approved by the Deputy Secretary of Energy on December 21, 2015, (80 FR 81310, December 29, 2015) and filed with FERC. E:\FR\FM\25AUN1.SGM 25AUN1 EN25AU16.037</GPH> Deviations less than or equal to ±1.5%, (with a 4 MW minimum) of metered generation. Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10 MW) of metered generation. Deviations greater than ±7.5% (or 10 MW) of metered generation ....... Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices the monthly transmission system peak hour. The monthly transmission system peak hour occurs when the metered load for all network service customers is the greatest. The metered load and the transmission system load at the peak hour are averaged on a rolling 12-month basis (12–CP). No changes were made to the formula rates for Network. asabaliauskas on DSK3SPTVN1PROD with NOTICES Transmission Losses WALC provides transmission losses to TSPs within its BA Area. Capacity and energy losses occur when a TSP delivers electricity over its transmission facilities for a customer. Losses are assessed for transactions on transmission facilities within WALC. A single loss percentage for WALC was developed in 2004 and applied to the P–DP, Intertie, and CAP transmission systems. The loss provisions contained in the transmission service rate schedules for each project have been consolidated into a new single rate schedule. No changes were made to the existing loss percentage or application. The transmission loss percentage currently in effect is posted on WALC’s OASIS. Unreserved Use Penalties Unreserved use occurs when a customer uses transmission service 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 penalty provisions for unreserved use in the transmission service rate schedules for each project have been unified and consolidated into a new single rate schedule. The penalty for a customer that engages in unreserved use is two times the maximum allowable firm point-to-point transmission rate for the service at issue, assessed as follows: (1) The penalty for one instance in a single hour is based on the daily shortterm rate; (2) The penalty for more than one instance for any given duration (e.g., daily) increases to the next longest duration (e.g., weekly). A transmission customer is also required to pay for all ancillary services provided and associated with the unreserved use. The customer must pay for ancillary services based on the amount of transmission service it used and did not reserve. Ancillary Services Discussion In accordance with WAPA’s OATT, ancillary services are needed with transmission service to maintain reliability inside and among the BA Areas affected by the transmission VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 service. WAPA’s DSW currently provides seven ancillary services under the OATT: (1) Scheduling, System Control and Dispatch; (2) Reactive Supply and Voltage Control; (3) Regulation and Frequency Response; (4) Energy Imbalance; (5) Spinning Reserve; (6) Supplemental Reserve; and (7) Generator Imbalance. The provisional formula rates for these services are designed to recover the costs incurred for providing each of the services. The first two ancillary services are defined by FERC as services that the TSP is required to provide directly, or indirectly by making arrangements with the BA, and the transmission customer is required to purchase. The remaining five ancillary services are services that the TSP (or the BA who performs the function for the TSP) must offer when transmission is used to serve load within the TSP’s BA. The transmission customer must purchase these ancillary services from the TSP, acquire the services from a third party, or selfsupply the services. Scheduling, System Control, and Dispatch This service is required to schedule the movement of power through, out of, within, or into a BA Area and must be provided by the BA in which the facilities used for transmission are located. WALC will provide this service for all transmission customers within its BA Area. The charge per schedule per day is calculated by dividing the annual costs associated with scheduling (numerator) by the number of schedules per year (denominator). The numerator includes the costs of transmission scheduling personnel, facilities, equipment, software, and other related costs involved in providing the service. The denominator is the yearly total of daily tags that result in a schedule, excluding schedules that return energy in kind. No changes were made to this formula rate. Reactive Supply and Voltage Control This service is required to maintain transmission voltages on DSW’s transmission facilities within acceptable limits, using generation facilities and non-generation resources capable of producing (or absorbing) reactive power. This service must be provided for each transaction on the transmission facilities within the BA by the TSP (or the BA who performs this function for the TSP). WALC will perform this service for DSW’s transmission system within its BA Area. The rate is calculated by dividing the annual revenue requirement for the service (numerator) by the transactions PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 58503 requiring the service (denominator). The numerator consists of the annual revenue requirement for generation multiplied by the percentage of resource capacity used for providing the service. That percentage is based on the nameplate power factor (one minus the power factor) for the generating units supplying service within WALC. The denominator consists of the transmission capacity of customers taking this service. No changes were made to this formula rate. Regulation and Frequency Response This service is necessary to provide for the continuous balancing of resources, generation and interchange with load, as well as for maintaining scheduled interconnection frequency at sixty cycles per second. The obligation to maintain this balance between resources and load lies with the TSP (or the BA who performs this function for the TSP). DSW (via WALC) must offer this service when transmission is used to serve load within its BA Area. The rate is calculated by dividing the annual revenue requirement for the service (numerator) by the sum of the load within WALC that requires the service and the generating capacity associated with variable energy resources (denominator). The numerator includes the annual costs associated with plant-in-service, operation and maintenance, purchases of regulation products, purchases of power to support WALC’s ability to regulate, and other related costs involved in providing the service. The denominator consists of the load within WALC that requires this service plus the product of the installed nameplate capacity of solar and wind generators serving load within WALC and the applicable capacity multipliers. The denominator has been changed to include the application of capacity multipliers. Although variable energy resources have not yet impacted WALC, including the multipliers will allow the formula rate to more accurately recover potential future costs from customers by following cost causation principles. WAPA’s DSW will set the multipliers at a value of one until variable energy resources begin to adversely impact WALC’s regulation needs. Energy Imbalance This service is provided when differences occur between the scheduled and the actual delivery of energy to a load located within the BA Area over a single hour. DSW (via WALC) must offer this service when transmission is used to serve load within its BA Area. E:\FR\FM\25AUN1.SGM 25AUN1 58504 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices The charges for this service are based on a graduated bandwidth structure. The size of the deviation and whether the deviation occurs in on-peak or offpeak hours determines settlement. No changes were made to the deviation bands and settlements for on-peak hours. The bandwidth structure for offpeak hours was changed to consist of three deviation bands, similar to the onpeak structure. This aligns with FERC Order 890 guidelines with appropriate penalty adjustments for WALC operating conditions. Spinning Reserve This service is needed to serve load immediately in the event of a system contingency and may be provided by generating units that are on-line and loaded at less than maximum output. DSW (via WALC) must offer this service when transmission is used to serve load within its BA Area. WALC has no resources available to provide this service. DSW may obtain the service on a pass-through cost basis at market price plus an administrative fee. No changes were made to this formula rate. asabaliauskas on DSK3SPTVN1PROD with NOTICES Supplemental Reserve This service is needed to serve load in the event of a system contingency. It is not available immediately to serve load but is generally available within a short period of time after a system contingency event. DSW (via WALC) must offer this service when transmission is used to serve load within its BA Area. WALC has no resources available to provide this service. DSW may obtain the service on a pass-through cost basis at market price plus an administrative fee. No changes were made to this formula rate. Generator Imbalance This service is provided when differences occur between the output of a generator located within the BA Area and a delivery schedule from that generator to another BA Area or a load within the TSP’s BA Area over a single hour. DSW (via WALC) must offer this service, to the extent it is physically feasible to do so from its resources or from resources available to it, when transmission is used to deliver energy from a generator located within its BA Area. The charges for this service are based on a graduated bandwidth structure. The size of the deviation and whether the deviation occurs in on-peak or offpeak hours determines settlement. No changes were made to the deviation bands and settlements for on-peak VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 hours. The bandwidth structure for offpeak hours was changed to consist of three deviation bands, similar to the onpeak structure. This aligns with FERC Order 890 guidelines with appropriate penalty adjustments for WALC operating conditions. Comments WAPA’s DSW received one comment during the public consultation and comment period. The comment has been paraphrased where appropriate, without compromising the meaning of the comment. Comment: Customer supports the rates as developed but requests that WAPA clarify the obligation to update service agreements in line with the terms of WAPA’s OATT. The customer also asks that WAPA clarify that the new rates and changes to underlying rate formulas constitute a change in formula, indicate to the Deputy Secretary what changes are required to the applicable service agreements, and notify WAPA’s customers when the Deputy Secretary approves the rates on an interim basis. Response: Although WAPA believes its process is sufficiently clear, WAPA will consider clarifying the manner in which it updates service agreements as currently set forth in WAPA’s OATT. However, review of WAPA’s OATT language is outside the scope of this rate adjustment process. WAPA identifies in the Federal Register notice the new rate schedules and the changes that were made to the formula rates for ancillary services. WAPA will notify DSW customers when the Deputy Secretary approves the formula rates on an interim basis. Availability of Information All brochures, studies, comments, letters, memorandums and other documents used by WAPA’s DSW to develop the provisional formula rates are available for inspection and copying at the Desert Southwest Regional Office, Western Area Power Administration, 615 South 43rd Avenue, Phoenix, Arizona. Many of these documents are available on WAPA’s DSW website at: https://www.wapa.gov/regions/DSW/ Rates/Pages/ancillary-rates.aspx. RATEMAKING PROCEDURE REQUIREMENTS Environmental Compliance In compliance with the National Environmental Policy Act (NEPA) of 1969, 42 U.S.C. 4321–4347; the Council on Environmental Quality Regulations for implementing NEPA (40 CFR parts 1500–1508); and DOE NEPA Implementing Procedures and PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 Guidelines (10 CFR part 1021), WAPA has determined that this action is categorically excluded from preparing an environmental assessment or an environmental impact statement. Determination Under Executive Order 12866 WAPA 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 FERC 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, the formula rates under Rate Schedules PD–NTS4, INT–NTS4, DSW–TL1, DSW–UU1, DSW–SD4, DSW–RS4, DSW–FR4, DSW–EI4, DSW–SPR4, DSW–SUR4, and DSW–GI2. These rate schedules are effective the first full billing period on or after October 1, 2016, and will remain in effect through September 30, 2021, pending FERC’s confirmation and approval of them or substitute formula rates on a final basis. Dated: August 18, 2016. Elizabeth Sherwood-Randall, Deputy Secretary of Energy. Rate Schedule PDP–NTS4 ATTACHMENT H to Tariff (Supersedes Schedule PDP–NTS3) UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION DESERT SOUTHWEST REGION Parker-Davis Project NETWORK INTEGRATION TRANSMISSION SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Transmission customers will compensate the Parker-Davis Project each month for Network Integration Transmission Service (Network) under the applicable Network Agreement and the formula rate described herein. E:\FR\FM\25AUN1.SGM 25AUN1 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices 58505 Formula Rate Based on the formula rate, the Annual Transmission Revenue Requirement (ATRR) will be calculated for each fiscal year using updated financial data. The ATRR will be effective on October 1st of each year and posted on Western Area Lower Colorado Balancing Authority’s website. Rate Schedule INT–NTS4 ATTACHMENT H to Tariff (Supersedes Schedule INT–NTS3) UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION DESERT SOUTHWEST REGION Pacific Northwest-Pacific Southwest Intertie Project NETWORK INTEGRATION TRANSMISSION SERVICE 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Transmission customers will compensate the Pacific NorthwestPacific Southwest Intertie Project each month for Network Integration Transmission Service (Network) under the applicable Network Agreement and the formula rate described herein. Formula Rate Effective The first day of the first full billing period beginning on or after October 1, UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION DESERT SOUTHWEST REGION Western Area Lower Colorado Balancing Authority Formula Rate TRANSMISSION LOSSES SERVICE asabaliauskas on DSK3SPTVN1PROD with NOTICES Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Capacity and energy losses occur when a Transmission Service Provider (TSP) delivers electricity over its transmission facilities for a transmission VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 The loss percentage currently in effect is posted on WALC’s website and may be changed from time to time. Financial settlement for losses will occur on a monthly basis, unless determined by WALC. Proxy prices used to determine financial settlement will be derived from the Palo Verde electricity price indexes, or similar alternative, for onpeak and off-peak. This pricing information is posted on WALC’s website. PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 Rate Schedule DSW–UU1 SCHEDULE 10 to OATT UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION DESERT SOUTHWEST REGION Central Arizona Project Pacific Northwest-Pacific Southwest Intertie Project Parker-Davis Project UNRESERVED USE PENALTIES Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Unreserved use occurs when a customer uses transmission service it has not reserved or uses transmission service in excess of its reserved capacity. Unreserved use may also include a transmission customer’s failure to curtail transmission when requested. The transmission customer shall compensate the Federal E:\FR\FM\25AUN1.SGM 25AUN1 EN25AU16.033</GPH> Rate Schedule DSW–TL1 customer. The Western Area Lower Colorado Balancing Authority (WALC) provides this service to TSPs within its Balancing Authority Area. Transmission losses (losses) are assessed for transactions on transmission facilities within WALC, unless separate agreements specify the terms for losses. The losses applicable to Federal TSPs will be passed directly to transmission customers. The transmission customer must either purchase this service from WALC or make alternative comparable arrangements to satisfy their obligations for losses. EN25AU16.032</GPH> Based on the formula rate, the Annual Transmission Revenue Requirement (ATRR) will be calculated for each fiscal year using updated financial data. The ATRR will be effective on October 1st of each year and posted on Western Area Lower Colorado Balancing Authority’s website. Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices Rate Schedule DSW–SD4 Transmission Service Providers (TSP) each month for any unreserved use of the transmission system. SCHEDULE 1 to OATT (Supersedes Schedule DSW–SD3) Penalty Rate The charge for a transmission customer that engages in unreserved use is two times the maximum allowable firm point-to-point transmission rate for the service at issue, assessed as follows: (1) The penalty for one instance in a single hour is based on the daily rate; (2) The penalty for more than one instance for any given duration (e.g., daily) increases to the next longest duration (e.g., weekly). A transmission 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 Federal TSP and associated with the unreserved use. The customer will pay for ancillary services based on the amount of transmission service it used and did not reserve. The charge per schedule per day is calculated by dividing the annual costs associated with scheduling (numerator) by the number of schedules per year (denominator). The numerator is the annual cost of transmission scheduling personnel, facilities, equipment, software, and other related costs involved in providing the service. The denominator is the yearly total of daily tags which result in a schedule, excluding schedules that return energy in kind. asabaliauskas on DSK3SPTVN1PROD with NOTICES Based on the formula rate, the charge will be calculated each fiscal year using updated financial and schedule data. The charge will be effective on October 1st of each year and posted on WALC’s website. UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Desert Southwest Region and Western Area Lower Colorado Balancing Authority SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Scheduling, System Control, and Dispatch Service is required to schedule the movement of power through, out of, within, or into the Balancing Authority Rate Schedule DSW–RS4 SCHEDULE 2 to OATT (Supersedes Schedule DSW–RS3) UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Desert Southwest Region and Western Area Lower Colorado Balancing Authority REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION SOURCES OR OTHER SOURCES SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable In order to maintain transmission voltages on the transmission facilities within acceptable limits, generation facilities and non-generation resources VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 Area (BA Area). This service can be provided only by the operator in which the transmission facilities used for transmission service are located. The Western Area Lower Colorado Balancing Authority (WALC) performs this service for all Transmission Service Providers (TSPs) within its BA Area. The transmission customer must purchase this service, unless other arrangements are made with WALC. The charge will be applied to all schedules, except for schedules that return energy in kind to WALC. WALC will accept any number of scheduling changes during the day without additional charge. The charge will be allocated equally among all TSPs, both Federal and non-Federal, listed on schedules inside its BA Area. The Federal transmission segments of the schedule are exempt from invoicing since the costs for these segments are included in applicable transmission service rates. Formula Rate capable of providing Reactive Supply and Voltage Control (VAR Support Service) are operated to produce (or absorb) reactive power. This service must be provided for each transaction on the transmission facilities within the Balancing Authority (BA) by the Transmission Service Provider (TSP) or the BA who performs this function for the TSP. VAR Support Service will be provided by the Western Area Lower Colorado Balancing Authority (WALC). Customers of a Federal TSP must purchase this service from WALC unless the transmission customer has generating resources capable of providing VARs directly to the Federal TSP and has executed a contract stipulating all the provisions of their self-supply. If WALC provides VAR Support Service on behalf of any nonFederal TSP, this service will be assessed on either the non-Federal TSP’s reserved capacity or the scheduled quantity of the non-Federal TSP’s customers. Formula Rate E:\FR\FM\25AUN1.SGM 25AUN1 EN25AU16.034</GPH> 58506 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices SCHEDULE 3 to OATT (Supersedes Schedule DSW–FR3) UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Desert Southwest Region and Western Area Lower Colorado Balancing Authority REGULATION AND FREQUENCY RESPONSE SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. asabaliauskas on DSK3SPTVN1PROD with NOTICES Applicable Regulation and Frequency Response Service (Regulation Service) is The numerator includes the annual costs associated with plant-in-service, operation and maintenance, purchase of regulation products, purchases of power to support WALC’s ability to regulate, and other related costs involved in providing the service. The denominator consists of the load within WALC that requires this service plus the product of the installed nameplate capacity of solar and wind generators serving load within WALC and the applicable capacity multipliers. Based on the formula rate, the charge will be calculated each fiscal year using updated financial and load data. The charge will be effective on October 1st of each year and will be posted on WALC’s website. Types of Assessments There are two different applications of this formula rate: VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 1) A load-based assessment which is applicable to load within WALC (total metered load less Federal power allocation, including behind the meter generation rating, or if available, hourly data if generation is synchronized) and the installed nameplate capacity of all intermittent resources serving load within WALC. 2) A self-provision assessment which allows entities with Automatic Generation Control (AGC) to selfprovide for all or a portion of their loads. Entities with AGC are known as Sub-Balancing Authorities (SBA) and must meet all of the following criteria: (a) have a well-defined boundary, with WALC-approved revenue-quality metering, accurate as defined by the North American Electric Reliability Corporation (NERC), to include Megawatt (MW) flow data availability at 6-second or smaller intervals; (b) have PO 00000 Frm 00040 Fmt 4703 Sfmt 4703 necessary to provide for the continuous balancing of resources, generation and interchange, with load, and for maintaining scheduled interconnection frequency at sixty cycles per second (60 Hz). The obligation to maintain this balance between resources and load lies with the Transmission Service Provider (TSP) or the Balancing Authority (BA) who performs this function for the TSP. The Western Area Lower Colorado Balancing Authority (WALC) performs this function for the Federal TSPs and must offer this service when transmission is used to serve load within its Balancing Authority Area (BA Area). Non-Federal TSPs and customers of Federal TSPs must purchase Regulation Service from WALC or make alternative comparable arrangements to satisfy their regulation obligations. Formula Rate AGC responsive unit(s); (c) demonstrate Regulation Service capability; and (d) execute a contract with WALC, provide all requested data, and meet the SBA error criteria below. Self-provision is measured by use of the entity’s 1-minute average Area Control Error (ACE) to determine the amount of self-provision. The ACE is used to calculate the Regulation Service charges every hour as follows: 1) If the entity’s 1-minute average ACE for the hour is less than or equal to 0.5 percent of its hourly average load, no charge is assessed for that hour. 2) If the entity’s 1-minute average ACE for the hour is greater than or equal to 1.5 percent of the entity’s hourly average load, WALC assess charges using the hourly load-based assessment applied to the entity’s peak load for that month. E:\FR\FM\25AUN1.SGM 25AUN1 EN25AU16.036</GPH> Rate Schedule DSW–FR4 EN25AU16.035</GPH> The numerator consists of the annual revenue requirement for generation multiplied by the percentage of resource capacity used for providing VAR Support Service. That percentage is based on the nameplate power factor (one minus the power factor) for the generating units supplying the service within WALC. The denominator consists of the transmission transactions within WALC that require this service. Based on the formula rate, the charge will be calculated each fiscal year using updated financial and reservation data. The charge will be effective on October 1st of each year and will be posted on WALC’s website. 58507 58508 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices 3) If the entity’s 1-minute average ACE for the hour is greater than 0.5 percent but less than 1.5 percent of its hourly average load, WALC assesses charges based on linear interpolation of no charge and full charge, using the hourly load-based assessment applied to the entity’s peak load for that month. Rate Schedule DSW–EI4 WALC monitors the entity’s selfprovision on a regular basis. If WALC determines that the entity has not been attempting to self-regulate, WALC will, upon notification, employ the loadbased assessment methodology described above. Desert Southwest Region and Western Area Lower Colorado Balancing Authority Alternative Arrangements Exporting Intermittent Resource Requirement: An entity that exports the output from an intermittent generator to another BA Area will be required to dynamically meter or dynamically schedule that resource out of WALC to another BA unless arrangements, satisfactory to WALC, are made for that entity to acquire this service from a third-party or self-supply (as outlined below). An intermittent generator is one whose output is volatile and variable due to factors beyond direct operational control and, therefore, is not dispatchable. Self- or Third-party Supply: WALC may allow an entity to supply some or all of its required regulation, or contract with a third party. This entity must have revenue quality metering at every load and generation point, with accuracy as defined by NERC, to include MW flow data availability at 6-second (or smaller) intervals. WALC will evaluate the entity’s metering, telecommunications and regulating resource, as well as the required level of regulation, to determine whether the entity qualifies to self-supply under this provision. If approved, the entity is required to enter into a separate agreement with WALC which will specify the terms of selfsupply. asabaliauskas on DSK3SPTVN1PROD with NOTICES Customer Accommodation For entities unwilling to take Regulation Service, self-provide as described above, or obtain the service from a third party, WALC will assist the entity in dynamically metering its loads/resources to another BA. Until such time meter configuration is accomplished, the entity will be responsible for charges assessed under this schedule. VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 SCHEDULE 4 to OATT (Supersedes Schedule DSW–EI3) UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION ENERGY IMBALANCE SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Energy Imbalance Service is provided when there is a difference between the scheduled and actual delivery of energy to a load located within a Balancing Authority Area (BA Area) over a single hour. The Transmission Service Provider (TSP) or the Balancing Authority (BA) who performs this function for the TSP must offer this service when transmission is used to serve load within its BA Area. The Western Area Lower Colorado Balancing Authority (WALC) performs this function for the Federal TSP. Customers of a Federal TSP must purchase this service from WALC or make alternative comparable arrangements to satisfy their Energy Imbalance obligations. Non-Federal TSPs must have separate agreements with WALC that specify the terms of Energy Imbalance Service. WALC may charge a transmission customer for either energy imbalances under this schedule or generator imbalances under Schedule 9 for imbalances occurring during the same hour, but not both unless the imbalances aggravate rather than offset each other. Formula Rate Charges for energy imbalances are based on the deviation bands as follows: 1. For deviations within ±1.5 percent (with a minimum of 4 MW) of the metered load, the settlement for on-peak and off-peak hours is 100 percent. 2. For deviations greater than ±1.5 up to 7.5 percent (or greater than 4 MW up to 10 MW) of the metered load, the settlement for on-peak hours is 110 percent for under-delivery and 90 percent for over-delivery, and the settlement for off-peak hours is 110 percent for under-delivery and 75 percent for over-delivery. PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 3. For deviations greater than ±7.5 percent (or 10 MW) of the metered load, the settlement for on-peak hours is 125 percent for under-delivery and 75 percent for over-delivery, and the settlement for off-peak hours is 125 percent for under-delivery and 60 percent for over-delivery. The deviation bands will be applied hourly and any energy imbalances that occur as a result of the transmission customer’s scheduled transactions will be netted on a monthly basis and settled financially at the end of the month. For purposes of this schedule, the proxy prices used to determine financial settlement will be derived from the Palo Verde electricity price indexes, or similar alternative, for on-peak and offpeak. WALC may accept settlement in energy in lieu of financial settlement. During periods of BA operating constraints, WALC reserves the right to eliminate credits for over-delivery. The cost to WALC of any penalty assessed by a regulatory authority due to a violation of operating standards resulting from under or over-delivery of energy may be passed through to customers. Rate Schedule DSW–SPR4 SCHEDULE 5 to OATT (Supersedes Schedule DSW–SPR3) UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Desert Southwest Region and Western Area Lower Colorado Balancing Authority OPERATING RESERVE—SPINNING RESERVE SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Spinning Reserve Service is needed to serve load immediately in the event of a system contingency and may be provided by generating units that are on-line and loaded at less than maximum output. The Transmission Service Provider (TSP) or the Balancing Authority (BA) who performs this function for the TSP must offer this service when transmission is used to serve load within its BA Area. The Western Area Lower Colorado Balancing Authority (WALC) performs this function for the Federal TSP. Customers of a Federal TSP must E:\FR\FM\25AUN1.SGM 25AUN1 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices 58509 make alternative arrangements to satisfy their Spinning Reserve obligations. Formula Rate WALC has no Spinning Reserves available for sale. Upon request, WALC will purchase at market price and passthrough the cost plus an administrative fee that covers the cost of procuring and supplying Spinning Reserves. The customer will be responsible for providing the transmission needed to deliver the Spinning Reserves purchased. WALC has no Supplemental Reserves for sale. Upon request, WALC will purchase at market price and passthrough the cost plus an administrative fee that covers the cost of procuring and supplying Supplemental Reserves. The customer will be responsible for providing the transmission needed to deliver. Rate Schedule DSW–SUR4 SCHEDULE 9 to OATT SCHEDULE 6 to OATT (Supersedes Schedule DSW–GI1) (Supersedes Schedule DSW–SPR3 UNITED STATES DEPARTMENT OF ENERGY dynamically schedule or dynamically meter their generation to another BA Area unless arrangements, satisfactory to WALC, are made to acquire this service from a third-party. An intermittent resource, for the limited purpose of this 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. WALC may charge a transmission customer for either generator imbalances under this schedule or energy imbalances under Schedule 4 for imbalances occurring during the same hour, but not both unless the imbalances aggravate rather than offset each other. UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION WESTERN AREA POWER ADMINISTRATION Desert Southwest Region and Western Area Lower Colorado Balancing Authority OPERATING RESERVE— SUPPLEMENTAL RESERVE SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. asabaliauskas on DSK3SPTVN1PROD with NOTICES Applicable Supplemental Reserve Service is needed to serve load in the event of a system contingency. It is not available immediately to serve load but is generally available within a short period of time after a system contingency event. This service may be provided by generating units that are on-line but unloaded, by quick-start generation, or by interruptible load. The Transmission Service Provider (TSP) or the Balancing Authority (BA) who performs this function for the TSP must offer this service when transmission is used to serve load within its BA Area. The Western Area Lower Colorado Balancing Authority (WALC) performs this function for the Federal TSP. Customers of a Federal TSP must purchase this service from WALC or make alternative arrangements to satisfy their Supplemental Reserve obligations. Formula Rate Cost of Service = Market Price + Administrative Fee VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 Rate Schedule DSW–GI2 Desert Southwest Region and Western Area Lower Colorado Balancing Authority GENERATOR IMBALANCE SERVICE Effective The first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Applicable Generator Imbalance Service is provided when a difference occurs between the output of a generator located in the Balancing Authority Area (BA Area) and the delivery schedule from that generator to another BA Area or a load within the Transmission Service Provider’s (TSP) BA Area over a single hour. The TSP or the Balancing Authority (BA) who performs this function for the TSP must offer this service, to the extent it is physically feasible to do so from its resources or from resources available to it, when transmission is used to deliver energy from a generator located within its BA Area. The Western Area Lower Colorado Balancing Authority (WALC) performs this function for the Federal TSP. Customers of a Federal TSP must purchase this service from WALC or make alternative comparable arrangements to satisfy their Generator Imbalance obligations. Non-Federal TSPs must have separate agreements with WALC that specify the terms of Generator Imbalance Service. An intermittent resource serving load outside WALC will be required to PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 Formula Rate Charges for generator imbalances are based on the deviation bands as follows: 1. For deviations within ±1.5 percent (with a minimum of 4 MW) of the metered generation, the settlement for on-peak and off-peak hours is 100 percent. 2. For deviations greater than ±1.5 up to 7.5 percent (or greater than 4 MW up to 10 MW) of the metered generation, the settlement for on-peak hours is 110 percent for under-delivery and 90 percent for over-delivery, and the settlement for off-peak hours is 110 percent for under-delivery and 75 percent for over-delivery. 3. For deviations greater than ±7.5 percent (or 10 MW) of the metered generation, the settlement for on-peak hours is 125 percent for under-delivery and 75 percent for over-delivery, and the settlement for off-peak hours is 125 percent for under-delivery and 60 percent for over-delivery. An intermittent resource will be exempt from this deviation band but will be subject to the settlement provisions in the second deviation band for all deviations greater than ±7.5 percent (or 10 MW). The deviation bands will be applied hourly and any generator imbalances that occur as a result of the transmission customer’s scheduled transactions will be netted on a monthly basis and settled financially at the end of the month. For purposes of this schedule, the proxy prices used to determine financial settlement will be derived from the Palo Verde electricity price indexes, or E:\FR\FM\25AUN1.SGM 25AUN1 EN25AU16.038</GPH> purchase this service from WALC or 58510 Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices similar alternative, for on-peak and offpeak. WALC may accept settlement in energy in lieu of financial settlement. During periods of BA operating constraints, WALC reserves the right to eliminate credits for over-delivery. The cost to WALC of any penalty assessed by a regulatory authority due to a violation of operating standards resulting from under or over-delivery of energy may be passed through to customers. [FR Doc. 2016–20397 Filed 8–24–16; 8:45 am] BILLING CODE 6450–01–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OLEM–2016–0465, FRL–9951–43– OLEM] Agency Information Collection Activities; Proposed Collection; Comment Request; Information Requirements for Boilers and Industrial Furnaces Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: The Environmental Protection Agency (EPA) is planning to submit the information collection request (ICR), Information Requirements for Boilers and Industrial Furnaces (EPA ICR No. 1361.17, OMB Control No. 2050–0073) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.). Before doing so, the EPA is soliciting public comments on specific aspects of the proposed information collection as described below. This is a proposed extension of the ICR, which is currently approved through December 31, 2016. An Agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. DATES: Comments must be submitted on or before October 24, 2016. ADDRESSES: Submit your comments, referencing by Docket ID No. EPA–HQ– OLEM–2016–0465, online using www.regulations.gov (our preferred method), by email to rcra-docket@ epa.gov, or by mail to: EPA Docket Center, Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW., Washington, DC 20460. EPA’s policy is that all comments received will be included in the public docket without change including any personal information provided, unless asabaliauskas on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:54 Aug 24, 2016 Jkt 238001 the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. FOR FURTHER INFORMATION CONTACT: Peggy Vyas, Office of Resource Conservation and Recovery (mail code 5303P), Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone number: 703–308–5477; fax number: 703–308–8433; email address: vyas.peggy@epa.gov. SUPPLEMENTARY INFORMATION: Supporting documents which explain in detail the information the EPA will be collecting are available in the public docket for this ICR. The docket can be viewed online at www.regulations.gov or in person at the EPA Docket Center, WJC West, Room 3334, 1301 Constitution Ave. NW., Washington, DC. The telephone number for the Docket Center is 202–566–1744. For additional information about EPA’s public docket, visit http://www.epa.gov/ dockets. Pursuant to section 3506(c)(2)(A) of the PRA, the EPA is soliciting comments and information to enable it to: (i) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (ii) evaluate the accuracy of the Agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) enhance the quality, utility, and clarity of the information to be collected; and (iv) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. The EPA will consider the comments received and amend the ICR as appropriate. The final ICR package will then be submitted to OMB for review and approval. At that time, the EPA will issue another Federal Register notice to announce the submission of the ICR to OMB and the opportunity to submit additional comments to OMB. Abstract: EPA regulates the burning of hazardous waste in boilers, incinerators, and industrial furnaces (BIFs) under 40 CFR parts 63, 264, 265, 266 and 270. This ICR describes the paperwork requirements that apply to the owners and operators of BIFs. This includes the general facility requirements at 40 CFR PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 parts 264 and 265, subparts B thru H; the requirements applicable to BIF units at 40 CFR part 266; and the RCRA Part B permit application and modification requirements at 40 CFR part 270. Form Numbers: None. Respondents/affected entities: Business or other for-profit. Respondent’s obligation to respond: Mandatory (per 40 CFR 264, 265, and 270). Estimated number of respondents: 114. Frequency of response: On occasion. Total estimated burden: 291,757 hours per year. Burden is defined at 5 CFR 1320.03(b). Total estimated cost: $21,004,550, which includes $9,839,942 annualized labor costs and $11,164,608 annualized capital or O&M costs. Changes in Estimates: The burden hours are likely to stay substantially the same. Dated: August 17, 2016. Barnes Johnson, Director, Office of Resource Conservation and Recovery. [FR Doc. 2016–20321 Filed 8–24–16; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY [FRL–9951–35–OA] Meeting of the Local Government Advisory Committee Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: The Local Government Advisory Committee’s (LGAC) Protecting America’s Waters Workgroup is seeking input on the LGAC’s Charge from the U.S. Environmental Protection Agency (EPA) to give advice and recommendations to the Administrator to inform the development of a National Action Plan for Drinking Water (Action Plan). The LGAC will provide their final recommendations to the EPA Administrator during the autumn of 2016. EPA is committed to working with government partners, communities, and stakeholders to strengthen the nations drinking water systems. The LGAC Protecting America’s Waters Workgroup will have a series of meetings to hear from local elected and appointed officials. These meetings will be held on Wednesday, September 7th, 2016 at 4:30–5:30 EDT; and Wednesday, September 21st, 4:30–5:30 EDT via teleconference. The focus of the SUMMARY: E:\FR\FM\25AUN1.SGM 25AUN1

Agencies

[Federal Register Volume 81, Number 165 (Thursday, August 25, 2016)]
[Notices]
[Pages 58497-58510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20397]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Region Transmission, Transmission Losses, 
Unreserved Use Penalties, and Ancillary Services--Rate Order No. WAPA-
175

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Final Formula Rates for Transmission and Ancillary 
Services.

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

[[Page 58498]]

SUMMARY: The Deputy Secretary of Energy has confirmed and approved Rate 
Order No. WAPA-175 and Rate Schedules PD-NTS4 and INT-NTS4, placing 
formula rates for Network Integration Transmission Service (Network) on 
the Parker-Davis Project (P-DP) and Pacific Northwest-Pacific Southwest 
Intertie Project (Intertie) of the Western Area Power Administration 
(WAPA) into effect on an interim basis. The Deputy Secretary also 
confirmed and approved Rate Schedules DSW-TL1, DSW-UU1, DSW-SD4, DSW-
RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2, placing formula 
rates for transmission losses, unreserved use penalties, and ancillary 
services from WAPA's Desert Southwest Region (DSW) and Western Area 
Lower Colorado Balancing Authority (WALC) into effect on an interim 
basis. The provisional formula rates will provide sufficient revenue to 
pay all annual costs, including interest expense, and repay applicable 
investments within the allowable periods.

DATES: Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, 
DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2 are 
effective on the first day of the first full billing period beginning 
on or after October 1, 2016, and will remain in effect through 
September 30, 2021, pending approval by the Federal Energy Regulatory 
Commission (FERC) on a final basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Ronald E. Moulton, Regional 
Manager, Desert Southwest Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2453, or Mr. Scott 
Lund, Rates Manager, Desert Southwest Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, 
email slund@wapa.gov.

SUPPLEMENTARY INFORMATION: WAPA's DSW published a Federal Register 
notice on February 3, 2016 (81 FR 5741), announcing the proposed 
formula rates, initiating a public consultation and comment period, and 
setting forth the date and location of public information and comment 
forums. On February 4, 2016, customers and interested parties were 
provided a copy of the published notice. WAPA's DSW held both forums in 
Phoenix, Arizona, on March 30, 2016.
    The previous Rate Schedules PD-NTS3, INT-NTS3, DSW-SD3, DSW-RS3, 
DSW-FR3, DSW-EI3, DSW-SPR3, DSW-SUR3, and DSW-GI1 for Rate Order No. 
WAPA-151 were approved by FERC for a 5-year period through September 
30, 2016.\1\ Several of these rate schedules contain formula rates that 
were calculated each year to include the most recent financial, load, 
and schedule information, as applicable. The new rate schedules 
continue this approach.
---------------------------------------------------------------------------

    \1\ Rate Order No. WAPA-151 was approved by FERC on a final 
basis on March 5, 2012, in Docket No. EF11-14-000 (138 FERC ] 
62,198).
---------------------------------------------------------------------------

Transmission Services

    Rate Schedules PD-NTS4 and INT-NTS4 for Network on the P-DP and 
Intertie are based on a revenue requirement that recovers the costs for 
providing transmission service. This includes the costs for scheduling, 
system control, and dispatch service needed to provide the transmission 
service.
    Rate Schedule DSW-TL1 for Transmission Losses is a new rate 
schedule that provides for the recovery of losses associated with 
transmission service. Previously, losses were addressed in the 
transmission service rate schedules for each project administered by 
WAPA's DSW.
    Rate Schedule DSW-UU1 for Unreserved Use Penalties is also a new 
rate schedule that provides for a penalty, in addition to the usual 
charge for transmission service, for the use of transmission capacity 
that has not been reserved or has been used in excess of the amount 
reserved. Previously, penalty provisions for unauthorized use were 
included in the transmission service rate schedules for each project 
administered by WAPA's DSW.

Ancillary Services

    DSW provides seven ancillary services pursuant to WAPA's Open 
Access Transmission Tariff (OATT). These services include: (1) 
Scheduling, System Control, and Dispatch (DSW-SD4); (2) Reactive Supply 
and Voltage Control (DSW-RS4); (3) Regulation and Frequency Response 
(DSW-FR4); (4) Energy Imbalance (DSW-EI4); (5) Spinning Reserve (DSW-
SPR4); (6) Supplemental Reserve (DSW-SUR4), and (7) Generator Imbalance 
(DSW-GI2).
    Changes were made to the formula rates for Regulation and Frequency 
Response, Energy Imbalance, and Generator Imbalance. The formula rate 
for Regulation and Frequency Response now includes the application of 
variable capacity multipliers to the installed capacity of variable 
energy resources. The formula rates for Energy Imbalance and Generator 
Imbalance now have the same bandwidth structure for on-peak and off-
peak hours. No changes were made to the formula rates for the other 
ancillary services. Minor editorial changes were made to rate schedule 
language to provide clarification and make them more uniform and 
consistent.
    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 the Administrator of WAPA; (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. Federal rules (10 CFR part 903) govern 
Department of Energy procedures for public participation in power and 
transmission rate adjustments.
    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 Rate Order No. WAPA-175, which provides the formula 
rates for DSW transmission, transmission losses, unreserved use 
penalties, and ancillary services into effect on an interim basis. The 
new Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, DSW-
RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2 will be 
submitted promptly to FERC for confirmation and approval on a final 
basis.

    Dated: August 18, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY

DEPUTY SECRETARY

    In the matter of: Western Area Power Administration, Desert 
Southwest Region, Rate Adjustment for Transmission Service, 
Transmission Losses, Unreserved Use Penalties, and Ancillary 
Services.

Rate Order No. WAPA-175

ORDER CONFIRMING, APPROVING, AND PLACING FORMULA RATES FOR TRANSMISSION 
SERVICE, TRANSMISSION LOSSES, UNRESERVED USE PENALTIES, AND ANCILLARY 
SERVICES INTO EFFECT ON AN INTERIM BASIS

    The formula rates set forth in this order are established pursuant 
to 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

[[Page 58499]]

Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, particularly section 9(c) of the 
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and other acts that 
specifically apply to the projects involved.
    By Delegation Order No. 00[dash]037.00A, effective October 25, 
2013, the Secretary of Energy delegated: (1) the authority to develop 
power and transmission rates to the Administrator of the Western Area 
Power Administration (WAPA); (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). Federal rules 
(10 CFR part 903) govern DOE procedures for public participation in 
power and transmission rate adjustments.

Acronyms and Definitions

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

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Balancing Authority (BA).....  The responsible entity that integrates
                                resource plans ahead of time, maintains
                                load-interchange-generation balance
                                within a Balancing Authority Area, and
                                supports interconnection frequency in
                                real-time.
Balancing Authority (BA) Area  The collection of generation,
                                transmission, and loads within the
                                metered boundaries of the Balancing
                                Authority.
DOE..........................  United States Department of Energy.
DSW..........................  Desert Southwest Region.
FERC.........................  Federal Energy Regulatory Commission.
Kilowatt (kW)................  Electrical unit of capacity equal to
                                1,000 watts.
Megawatt (MW)................  Electrical unit of capacity equal to
                                1,000 kW or 1,000,000 watts.
Network......................  Network Integration Transmission Service.
OATT.........................  WAPA's revised Open Access Transmission
                                Tariff, effective May 13, 2013.
Open Access Same-Time          An electronic posting system that a
 Informaton System (OASIS).     service provider maintains for
                                transmission access data that allows
                                users to view information
                                simultaneously.
Transmission Service Provider  Any utility that owns, operates, or
 (TSP).                         controls facilities used to transmit
                                electric energy.
VAR..........................  Volt-Ampere Reactive, a unit by which
                                reactive power is expressed.
VER..........................  Variable energy resources.
WALC.........................  Western Area Lower Colorado Balancing
                                Authority.
WAPA.........................  Western Area Power Administration.
------------------------------------------------------------------------

Effective Date

    The provisional formula rates are effective on the first day of the 
first full billing period beginning on or after October 1, 2016, and 
will remain in effect through September 30, 2021, pending approval by 
FERC on a final basis or until superseded.

Public Notice and Comment

    WAPA followed the Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these formula rates and schedules. WAPA took the following 
steps to involve the public in the rate adjustment process:
    1. On July 2, 2015, WAPA notified DSW customers and interested 
parties by email of an informal meeting and posted this notice on its 
public website. On August 10, 2015, WAPA held an informal meeting to 
discuss DSW's rate proposals for transmission and ancillary services.
    2. WAPA published a Federal Register notice on February 3, 2016 (81 
FR 5741), announcing the proposed formula rates, initiating the 
90[dash]day public consultation and comment period, setting forth the 
date and location of public information and public comment forums, and 
outlining the procedures for public participation.
    3. On February 4, 2016, WAPA sent DSW customers and interested 
parties a copy of the notice.
    4. On March 30, 2016, WAPA held a public information forum in 
Phoenix, Arizona. WAPA's DSW representatives explained the need for the 
formula rate adjustment and proposed changes to the formula rates, 
answered questions, and provided presentation handouts.
    5. On March 30, 2016, following the public information forum, WAPA 
held a public comment forum in Phoenix, Arizona, to provide customers 
and interested parties an opportunity to comment for the record.
    6. WAPA established a public website to post information about this 
rate adjustment. The website is located at https://www.wapa.gov/regions/DSW/Rates/Pages/ancillary-rates.aspx.

Comments

    No oral comments were made at the public comment forum. WAPA 
received one written comment during the consultation and comment 
period. A written comment was received from Arizona Generation and 
Transmission Cooperatives, Benson, Arizona. The comment has been 
considered in preparing this Rate Order

Project Descriptions

    WAPA's DSW provides ancillary services through WALC, which 
encompasses the projects within its marketing area--Boulder Canyon 
Project (BCP), Parker-Davis Project (P-DP), Central Arizona Project 
(CAP), and the Pacific Northwest-Pacific Southwest Intertie Project 
(Intertie). Network is offered on the P-DP, CAP, and Intertie.

BCP

    Hoover Dam, authorized by the Boulder Canyon Project Act (45 Stat. 
1057, December 21, 1928), sits on the Colorado River along the Arizona-
Nevada border. Hoover Dam's power plant has 19 generating units (two 
for plant use) and an installed capacity of 2,078,800 kW (4,800 kW for 
plant use). High-voltage transmission lines and substations make it 
possible to deliver this power to southern Nevada, Arizona, and 
southern California.

P-DP

    P-DP was formed by consolidating two projects, Davis Dam and Parker 
Dam, under terms of the Act of May 28, 1954 (68 Stat. 143). Davis Dam's 
power plant has five generating units and an installed capacity of 
255,000 kW. Parker Dam's power plant has four generating units and an 
installed capacity of 120,000 kW. P-DP is operated in conjunction with 
the other Federal hydroelectric generation facilities in the Colorado 
River Basin. The project also includes 1,535 circuit miles of 
transmission lines in Arizona, southern Nevada, and along the Colorado 
River in California.

CAP

    Congress authorized CAP in 1968 to improve water resources in the 
Colorado River Basin (43 U.S.C. 1501). The

[[Page 58500]]

legislation also authorized Federal participation in the Navajo 
Generating Station, which has three coal-fired steam electric 
generating units with a combined capacity of 2,250,000 kW. The 24.3 
percent Federal share (546,750 kW) of the Navajo Generating Station is 
used to power the pumps that move Colorado River water through the CAP 
canals.

Intertie

    Intertie was authorized by Section 8 of the Pacific Northwest Power 
Marketing Act of August 31, 1964 (16 U.S.C. 837g). WAPA's portion of 
the Intertie consists of two parts, a northern portion and a southern 
portion. The northern portion is administered by WAPA's Sierra Nevada 
Region. The southern portion is administered by WAPA's DSW and consists 
of 865 circuit miles of extra high-voltage and 108 circuit miles of 
high-voltage transmission lines in Arizona, southern Nevada, and 
southern California.

Existing and Provisional Formula Rates

    The existing formula rates contained in Rate Schedules PD-NTS3, 
INT-NTS3, DSW-SD3, DSW-RS3, DSW-FR3, DSW-EI3, DSW-SPR3, DSW-SUR3, and 
DSW-GI1 expire on September 30, 2016. Several of these rate schedules 
contain formula rates that are calculated each fiscal year to include 
the most recent financial, load, and schedule information, as 
applicable. The new rate schedules continue with this approach.

Network

    The existing formula rates for Network on the P-DP and Intertie 
under Rate Schedules PD-NTS3 and INT-NTS3, respectively, are the 
following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.028

    The provisional formula rates for Network on the P-DP and Intertie 
under Rate Schedules PD-NTS4 and INT-NTS4 remain the same without 
adjustment.

Transmission Losses

    Rate Schedule DSW-TL1 is a new schedule that consolidates the 
provisions for transmission losses. This rate schedule will supersede 
the existing losses provisions in the separate transmission rate 
schedules for each project. The current loss percentages and their 
application remain unchanged.

Unreserved Use Penalties

    Rate Schedule DSW-UU1 is a new schedule that unifies and 
consolidates the penalty provisions for unreserved use. This rate 
schedule will supersede the existing unauthorized or unreserved use 
provisions in the separate transmission rate schedules for each 
project.

Scheduling, System Control, and Dispatch

    The existing formula rate for this service under Rate Schedule DSW-
SD3 is the following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.029

    The provisional formula rate for this service under Rate Schedule 
DSW-SD4 remains the same without adjustment.

Reactive Supply and Voltage Control

    The existing formula rate for this service under Rate Schedule DSW-
RS3 is the following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.030

    The provisional formula rate for this service under Rate Schedule 
DSW-RS4 remains the same without adjustment.

Regulation and Frequency Response

    The existing formula rate for this service under Rate Schedule DSW-
FR3 is the following:

[[Page 58501]]

[GRAPHIC] [TIFF OMITTED] TN25AU16.031

Energy Imbalance

    The existing formula rate for this service under Rate Schedule DSW-
EI3 is the following:

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5% (with a 4 MW minimum) of
 metered load.
Deviations greater than 1.5% up to 7.5% (or greater than   110% for under-deliveries (10%
 4 MW to 10 MW) of metered load.          penalty).
Deviations greater than 7.5% (or 10 MW) of metered load.   125% for under-deliveries (25%
                                          penalty).
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to +7.5%   60% for over-delivery (40%
 (with a 2 MW minimum) of metered load.   penalty).
Deviations less than or equal to -3.0%   110% for under-delivery (10%
 (with a 5 MW minimum) of metered load.   penalty).
------------------------------------------------------------------------

    The provisional formula rate for this service under Rate Schedule 
DSW-EI4 is the following

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
No Changes.............................  No Changes.
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5% (with a 4 MW minimum) of
 metered load.
Deviations greater than 1.5% up to 7.5% (or greater than   penalty), 110% for under-
 4 MW to 10 MW) of metered load.          deliveries (10% penalty).
Deviations greater than 7.5% (or 10 MW) of metered load.   penalty), 125% for under-
                                          deliveries (25% penalty).
------------------------------------------------------------------------


[[Page 58502]]

Operating Reserves--Spinning and Supplemental

    The existing formula rates for these services under Rate Schedules 
DSW-SPR3 and DSW-SUR3 are the following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.037

    The provisional formula rates for these services under Rate 
Schedules DSW-SPR4 and DSW-SUR4 remain the same without adjustment.

Generator Imbalance

    The existing formula rate for this service under Rate Schedule DSW-
GI1 is the following:

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5% (with a 4 MW minimum) of
 metered generation.
Deviations greater than 1.5% up to 7.5% (or greater than   110%, for under-deliveries
 4 MW to 10 MW) of metered generation.    (10% penalty).
Deviations greater than 7.5% (or 10 MW) of metered         125%, for under-deliveries
 generation.                              (25% penalty).
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to +7.5%   60% for over-delivery (40%
 (with a 2 MW minimum) of metered         penalty).
 generation.
Deviations less than or equal to -3.0%   110% for under-delivery (10%
 (with a 5 MW minimum) of metered         penalty).
 generation.
------------------------------------------------------------------------

    The provisional formula rate for this service under Rate Schedule 
DSW-GI2 is the following:

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
No Changes.............................  No Changes.
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5%, (with a 4 MW minimum) of
 metered generation.
Deviations greater than 1.5% up to 7.5% (or greater than   penalty), 110% for under-
 4 MW to 10 MW) of metered generation.    deliveries (10% penalty).
Deviations greater than 7.5% (or 10 MW) of metered         penalty), 125% for under-
 generation.                              deliveries (25% penalty).
------------------------------------------------------------------------

Certification of Rates

    WAPA's Administrator certified that the provisional formula rates 
for Network, transmission losses, unreserved use penalties, and 
ancillary services under Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, 
DSW-UU1, DSW-SD4, DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and 
DSW-GI2 result in the lowest possible rates consistent with sound 
business principles. The provisional formula rates were developed 
following administrative policies and applicable laws.

Transmission Services Discussion

Network

    DSW offers Network to eligible customers, subject to the provisions 
in WAPA's OATT, from the P-DP, Intertie, and CAP transmission systems. 
This service includes the transmission of energy to points of delivery 
on the P-DP, Intertie, and CAP interconnected high-voltage systems, 
which includes transmission lines, substations, communication equipment 
and related facilities. The provisional formula rates only apply to 
Network from the P-DP and Intertie transmission systems. The formula 
rate for Network from the CAP transmission system was approved under 
Rate Order No. WAPA-172 and became effective on January 1, 2016.\2\ The 
formula rate for Network from CAP is identical to the provisional 
formula rates for P-DP and Intertie.
---------------------------------------------------------------------------

    \2\ Rate Order No. WAPA-172 was approved by the Deputy Secretary 
of Energy on December 21, 2015, (80 FR 81310, December 29, 2015) and 
filed with FERC.
---------------------------------------------------------------------------

    The monthly charge for Network is the product of the customer's 
load-ratio share and one-twelfth (\1/12\) of the annual revenue 
requirement for the appropriate transmission system. The load-ratio 
share is equal to the customer's hourly load coincident with

[[Page 58503]]

the monthly transmission system peak hour. The monthly transmission 
system peak hour occurs when the metered load for all network service 
customers is the greatest. The metered load and the transmission system 
load at the peak hour are averaged on a rolling 12-month basis (12-CP). 
No changes were made to the formula rates for Network.

Transmission Losses

    WALC provides transmission losses to TSPs within its BA Area. 
Capacity and energy losses occur when a TSP delivers electricity over 
its transmission facilities for a customer. Losses are assessed for 
transactions on transmission facilities within WALC.
    A single loss percentage for WALC was developed in 2004 and applied 
to the P-DP, Intertie, and CAP transmission systems. The loss 
provisions contained in the transmission service rate schedules for 
each project have been consolidated into a new single rate schedule. No 
changes were made to the existing loss percentage or application. The 
transmission loss percentage currently in effect is posted on WALC's 
OASIS.

Unreserved Use Penalties

    Unreserved use occurs when a customer uses transmission service 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 penalty provisions for unreserved use in the transmission 
service rate schedules for each project have been unified and 
consolidated into a new single rate schedule. The penalty for a 
customer that engages in unreserved use is two times the maximum 
allowable firm point-to-point transmission rate for the service at 
issue, assessed as follows:
    (1) The penalty for one instance in a single hour is based on the 
daily short-term rate;
    (2) The penalty for more than one instance for any given duration 
(e.g., daily) increases to the next longest duration (e.g., weekly).
    A transmission customer is also required to pay for all ancillary 
services provided and associated with the unreserved use. The customer 
must pay for ancillary services based on the amount of transmission 
service it used and did not reserve.

Ancillary Services Discussion

    In accordance with WAPA's OATT, ancillary services are needed with 
transmission service to maintain reliability inside and among the BA 
Areas affected by the transmission service. WAPA's DSW currently 
provides seven ancillary services under the OATT: (1) Scheduling, 
System Control and Dispatch; (2) Reactive Supply and Voltage Control; 
(3) Regulation and Frequency Response; (4) Energy Imbalance; (5) 
Spinning Reserve; (6) Supplemental Reserve; and (7) Generator 
Imbalance. The provisional formula rates for these services are 
designed to recover the costs incurred for providing each of the 
services.
    The first two ancillary services are defined by FERC as services 
that the TSP is required to provide directly, or indirectly by making 
arrangements with the BA, and the transmission customer is required to 
purchase. The remaining five ancillary services are services that the 
TSP (or the BA who performs the function for the TSP) must offer when 
transmission is used to serve load within the TSP's BA. The 
transmission customer must purchase these ancillary services from the 
TSP, acquire the services from a third party, or self-supply the 
services.

Scheduling, System Control, and Dispatch

    This service is required to schedule the movement of power through, 
out of, within, or into a BA Area and must be provided by the BA in 
which the facilities used for transmission are located. WALC will 
provide this service for all transmission customers within its BA Area.
    The charge per schedule per day is calculated by dividing the 
annual costs associated with scheduling (numerator) by the number of 
schedules per year (denominator). The numerator includes the costs of 
transmission scheduling personnel, facilities, equipment, software, and 
other related costs involved in providing the service. The denominator 
is the yearly total of daily tags that result in a schedule, excluding 
schedules that return energy in kind. No changes were made to this 
formula rate.

Reactive Supply and Voltage Control

    This service is required to maintain transmission voltages on DSW's 
transmission facilities within acceptable limits, using generation 
facilities and non-generation resources capable of producing (or 
absorbing) reactive power. This service must be provided for each 
transaction on the transmission facilities within the BA by the TSP (or 
the BA who performs this function for the TSP). WALC will perform this 
service for DSW's transmission system within its BA Area.
    The rate is calculated by dividing the annual revenue requirement 
for the service (numerator) by the transactions requiring the service 
(denominator). The numerator consists of the annual revenue requirement 
for generation multiplied by the percentage of resource capacity used 
for providing the service. That percentage is based on the nameplate 
power factor (one minus the power factor) for the generating units 
supplying service within WALC. The denominator consists of the 
transmission capacity of customers taking this service. No changes were 
made to this formula rate.

Regulation and Frequency Response

    This service is necessary to provide for the continuous balancing 
of resources, generation and interchange with load, as well as for 
maintaining scheduled interconnection frequency at sixty cycles per 
second. The obligation to maintain this balance between resources and 
load lies with the TSP (or the BA who performs this function for the 
TSP). DSW (via WALC) must offer this service when transmission is used 
to serve load within its BA Area.
    The rate is calculated by dividing the annual revenue requirement 
for the service (numerator) by the sum of the load within WALC that 
requires the service and the generating capacity associated with 
variable energy resources (denominator). The numerator includes the 
annual costs associated with plant-in-service, operation and 
maintenance, purchases of regulation products, purchases of power to 
support WALC's ability to regulate, and other related costs involved in 
providing the service. The denominator consists of the load within WALC 
that requires this service plus the product of the installed nameplate 
capacity of solar and wind generators serving load within WALC and the 
applicable capacity multipliers.
    The denominator has been changed to include the application of 
capacity multipliers. Although variable energy resources have not yet 
impacted WALC, including the multipliers will allow the formula rate to 
more accurately recover potential future costs from customers by 
following cost causation principles. WAPA's DSW will set the 
multipliers at a value of one until variable energy resources begin to 
adversely impact WALC's regulation needs.

Energy Imbalance

    This service is provided when differences occur between the 
scheduled and the actual delivery of energy to a load located within 
the BA Area over a single hour. DSW (via WALC) must offer this service 
when transmission is used to serve load within its BA Area.

[[Page 58504]]

    The charges for this service are based on a graduated bandwidth 
structure. The size of the deviation and whether the deviation occurs 
in on-peak or off-peak hours determines settlement. No changes were 
made to the deviation bands and settlements for on-peak hours. The 
bandwidth structure for off-peak hours was changed to consist of three 
deviation bands, similar to the on-peak structure. This aligns with 
FERC Order 890 guidelines with appropriate penalty adjustments for WALC 
operating conditions.

Spinning Reserve

    This service is needed to serve load immediately in the event of a 
system contingency and may be provided by generating units that are on-
line and loaded at less than maximum output. DSW (via WALC) must offer 
this service when transmission is used to serve load within its BA 
Area.
    WALC has no resources available to provide this service. DSW may 
obtain the service on a pass-through cost basis at market price plus an 
administrative fee. No changes were made to this formula rate.

Supplemental Reserve

    This service is needed to serve load in the event of a system 
contingency. It is not available immediately to serve load but is 
generally available within a short period of time after a system 
contingency event. DSW (via WALC) must offer this service when 
transmission is used to serve load within its BA Area.
    WALC has no resources available to provide this service. DSW may 
obtain the service on a pass-through cost basis at market price plus an 
administrative fee. No changes were made to this formula rate.

Generator Imbalance

    This service is provided when differences occur between the output 
of a generator located within the BA Area and a delivery schedule from 
that generator to another BA Area or a load within the TSP's BA Area 
over a single hour. DSW (via WALC) must offer this service, to the 
extent it is physically feasible to do so from its resources or from 
resources available to it, when transmission is used to deliver energy 
from a generator located within its BA Area.
    The charges for this service are based on a graduated bandwidth 
structure. The size of the deviation and whether the deviation occurs 
in on-peak or off-peak hours determines settlement. No changes were 
made to the deviation bands and settlements for on-peak hours. The 
bandwidth structure for off-peak hours was changed to consist of three 
deviation bands, similar to the on-peak structure. This aligns with 
FERC Order 890 guidelines with appropriate penalty adjustments for WALC 
operating conditions.

Comments

    WAPA's DSW received one comment during the public consultation and 
comment period. The comment has been paraphrased where appropriate, 
without compromising the meaning of the comment.
    Comment: Customer supports the rates as developed but requests that 
WAPA clarify the obligation to update service agreements in line with 
the terms of WAPA's OATT. The customer also asks that WAPA clarify that 
the new rates and changes to underlying rate formulas constitute a 
change in formula, indicate to the Deputy Secretary what changes are 
required to the applicable service agreements, and notify WAPA's 
customers when the Deputy Secretary approves the rates on an interim 
basis.
    Response: Although WAPA believes its process is sufficiently clear, 
WAPA will consider clarifying the manner in which it updates service 
agreements as currently set forth in WAPA's OATT. However, review of 
WAPA's OATT language is outside the scope of this rate adjustment 
process. WAPA identifies in the Federal Register notice the new rate 
schedules and the changes that were made to the formula rates for 
ancillary services. WAPA will notify DSW customers when the Deputy 
Secretary approves the formula rates on an interim basis.

Availability of Information

    All brochures, studies, comments, letters, memorandums and other 
documents used by WAPA's DSW to develop the provisional formula rates 
are available for inspection and copying at the Desert Southwest 
Regional Office, Western Area Power Administration, 615 South 43rd 
Avenue, Phoenix, Arizona. Many of these documents are available on 
WAPA's DSW website at: https://www.wapa.gov/regions/DSW/Rates/Pages/ancillary-rates.aspx.

RATEMAKING PROCEDURE REQUIREMENTS

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969, 42 U.S.C. 4321-4347; the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), WAPA 
has determined that this action is categorically excluded from 
preparing an environmental assessment or an environmental impact 
statement.

Determination Under Executive Order 12866

    WAPA 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 FERC

    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, the formula rates under Rate 
Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, DSW-RS4, DSW-
FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2. These rate schedules are 
effective the first full billing period on or after October 1, 2016, 
and will remain in effect through September 30, 2021, pending FERC's 
confirmation and approval of them or substitute formula rates on a 
final basis.

    Dated: August 18, 2016.

Elizabeth Sherwood-Randall,

Deputy Secretary of Energy.

Rate Schedule PDP-NTS4

ATTACHMENT H to Tariff

(Supersedes Schedule PDP-NTS3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Parker-Davis Project

NETWORK INTEGRATION TRANSMISSION SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Transmission customers will compensate the Parker-Davis Project 
each month for Network Integration Transmission Service (Network) under 
the applicable Network Agreement and the formula rate described herein.

[[Page 58505]]

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.032

    Based on the formula rate, the Annual Transmission Revenue 
Requirement (ATRR) will be calculated for each fiscal year using 
updated financial data. The ATRR will be effective on October 1st of 
each year and posted on Western Area Lower Colorado Balancing 
Authority's website.

Rate Schedule INT-NTS4

ATTACHMENT H to Tariff

(Supersedes Schedule INT-NTS3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Pacific Northwest-Pacific Southwest Intertie Project

NETWORK INTEGRATION TRANSMISSION SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Transmission customers will compensate the Pacific Northwest-
Pacific Southwest Intertie Project each month for Network Integration 
Transmission Service (Network) under the applicable Network Agreement 
and the formula rate described herein.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.033

    Based on the formula rate, the Annual Transmission Revenue 
Requirement (ATRR) will be calculated for each fiscal year using 
updated financial data. The ATRR will be effective on October 1st of 
each year and posted on Western Area Lower Colorado Balancing 
Authority's website.

Rate Schedule DSW-TL1

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Western Area Lower Colorado Balancing Authority

TRANSMISSION LOSSES SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Capacity and energy losses occur when a Transmission Service 
Provider (TSP) delivers electricity over its transmission facilities 
for a transmission customer. The Western Area Lower Colorado Balancing 
Authority (WALC) provides this service to TSPs within its Balancing 
Authority Area. Transmission losses (losses) are assessed for 
transactions on transmission facilities within WALC, unless separate 
agreements specify the terms for losses. The losses applicable to 
Federal TSPs will be passed directly to transmission customers. The 
transmission customer must either purchase this service from WALC or 
make alternative comparable arrangements to satisfy their obligations 
for losses.

Formula Rate

    The loss percentage currently in effect is posted on WALC's website 
and may be changed from time to time. Financial settlement for losses 
will occur on a monthly basis, unless determined by WALC. Proxy prices 
used to determine financial settlement will be derived from the Palo 
Verde electricity price indexes, or similar alternative, for on-peak 
and off-peak. This pricing information is posted on WALC's website.

Rate Schedule DSW-UU1

SCHEDULE 10 to OATT

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Central Arizona Project

Pacific Northwest-Pacific Southwest Intertie Project

Parker-Davis Project

UNRESERVED USE PENALTIES

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Unreserved use occurs when a customer uses transmission service it 
has not reserved or uses transmission service in excess of its reserved 
capacity. Unreserved use may also include a transmission customer's 
failure to curtail transmission when requested. The transmission 
customer shall compensate the Federal

[[Page 58506]]

Transmission Service Providers (TSP) each month for any unreserved use 
of the transmission system.

Penalty Rate

    The charge for a transmission customer that engages in unreserved 
use is two times the maximum allowable firm point-to-point transmission 
rate for the service at issue, assessed as follows:
    (1) The penalty for one instance in a single hour is based on the 
daily rate;
    (2) The penalty for more than one instance for any given duration 
(e.g., daily) increases to the next longest duration (e.g., weekly).
    A transmission 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 Federal TSP and associated with the unreserved use. The 
customer will pay for ancillary services based on the amount of 
transmission service it used and did not reserve.

Rate Schedule DSW-SD4

SCHEDULE 1 to OATT

(Supersedes Schedule DSW-SD3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and

Western Area Lower Colorado Balancing Authority

SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Scheduling, System Control, and Dispatch Service is required to 
schedule the movement of power through, out of, within, or into the 
Balancing Authority Area (BA Area). This service can be provided only 
by the operator in which the transmission facilities used for 
transmission service are located. The Western Area Lower Colorado 
Balancing Authority (WALC) performs this service for all Transmission 
Service Providers (TSPs) within its BA Area. The transmission customer 
must purchase this service, unless other arrangements are made with 
WALC.
    The charge will be applied to all schedules, except for schedules 
that return energy in kind to WALC. WALC will accept any number of 
scheduling changes during the day without additional charge. The charge 
will be allocated equally among all TSPs, both Federal and non-Federal, 
listed on schedules inside its BA Area. The Federal transmission 
segments of the schedule are exempt from invoicing since the costs for 
these segments are included in applicable transmission service rates.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.034

    The charge per schedule per day is calculated by dividing the 
annual costs associated with scheduling (numerator) by the number of 
schedules per year (denominator). The numerator is the annual cost of 
transmission scheduling personnel, facilities, equipment, software, and 
other related costs involved in providing the service. The denominator 
is the yearly total of daily tags which result in a schedule, excluding 
schedules that return energy in kind.
    Based on the formula rate, the charge will be calculated each 
fiscal year using updated financial and schedule data. The charge will 
be effective on October 1st of each year and posted on WALC's website.

Rate Schedule DSW-RS4

SCHEDULE 2 to OATT

(Supersedes Schedule DSW-RS3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and

Western Area Lower Colorado Balancing Authority

REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION SOURCES OR OTHER 
SOURCES SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    In order to maintain transmission voltages on the transmission 
facilities within acceptable limits, generation facilities and non-
generation resources capable of providing Reactive Supply and Voltage 
Control (VAR Support Service) are operated to produce (or absorb) 
reactive power. This service must be provided for each transaction on 
the transmission facilities within the Balancing Authority (BA) by the 
Transmission Service Provider (TSP) or the BA who performs this 
function for the TSP.
    VAR Support Service will be provided by the Western Area Lower 
Colorado Balancing Authority (WALC). Customers of a Federal TSP must 
purchase this service from WALC unless the transmission customer has 
generating resources capable of providing VARs directly to the Federal 
TSP and has executed a contract stipulating all the provisions of their 
self-supply. If WALC provides VAR Support Service on behalf of any non-
Federal TSP, this service will be assessed on either the non-Federal 
TSP's reserved capacity or the scheduled quantity of the non-Federal 
TSP's customers.

Formula Rate

[[Page 58507]]

[GRAPHIC] [TIFF OMITTED] TN25AU16.035

    The numerator consists of the annual revenue requirement for 
generation multiplied by the percentage of resource capacity used for 
providing VAR Support Service. That percentage is based on the 
nameplate power factor (one minus the power factor) for the generating 
units supplying the service within WALC. The denominator consists of 
the transmission transactions within WALC that require this service.
    Based on the formula rate, the charge will be calculated each 
fiscal year using updated financial and reservation data. The charge 
will be effective on October 1st of each year and will be posted on 
WALC's website.

Rate Schedule DSW-FR4

SCHEDULE 3 to OATT

(Supersedes Schedule DSW-FR3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and

Western Area Lower Colorado Balancing Authority

REGULATION AND FREQUENCY RESPONSE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Regulation and Frequency Response Service (Regulation Service) is 
necessary to provide for the continuous balancing of resources, 
generation and interchange, with load, and for maintaining scheduled 
interconnection frequency at sixty cycles per second (60 Hz). The 
obligation to maintain this balance between resources and load lies 
with the Transmission Service Provider (TSP) or the Balancing Authority 
(BA) who performs this function for the TSP. The Western Area Lower 
Colorado Balancing Authority (WALC) performs this function for the 
Federal TSPs and must offer this service when transmission is used to 
serve load within its Balancing Authority Area (BA Area). Non-Federal 
TSPs and customers of Federal TSPs must purchase Regulation Service 
from WALC or make alternative comparable arrangements to satisfy their 
regulation obligations.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.036

    The numerator includes the annual costs associated with plant-in-
service, operation and maintenance, purchase of regulation products, 
purchases of power to support WALC's ability to regulate, and other 
related costs involved in providing the service. The denominator 
consists of the load within WALC that requires this service plus the 
product of the installed nameplate capacity of solar and wind 
generators serving load within WALC and the applicable capacity 
multipliers.
    Based on the formula rate, the charge will be calculated each 
fiscal year using updated financial and load data. The charge will be 
effective on October 1st of each year and will be posted on WALC's 
website.

Types of Assessments

    There are two different applications of this formula rate:
    1) A load-based assessment which is applicable to load within WALC 
(total metered load less Federal power allocation, including behind the 
meter generation rating, or if available, hourly data if generation is 
synchronized) and the installed nameplate capacity of all intermittent 
resources serving load within WALC.
    2) A self-provision assessment which allows entities with Automatic 
Generation Control (AGC) to self-provide for all or a portion of their 
loads. Entities with AGC are known as Sub-Balancing Authorities (SBA) 
and must meet all of the following criteria: (a) have a well-defined 
boundary, with WALC-approved revenue-quality metering, accurate as 
defined by the North American Electric Reliability Corporation (NERC), 
to include Megawatt (MW) flow data availability at 6-second or smaller 
intervals; (b) have AGC responsive unit(s); (c) demonstrate Regulation 
Service capability; and (d) execute a contract with WALC, provide all 
requested data, and meet the SBA error criteria below.
    Self-provision is measured by use of the entity's 1-minute average 
Area Control Error (ACE) to determine the amount of self-provision. The 
ACE is used to calculate the Regulation Service charges every hour as 
follows:
    1) If the entity's 1-minute average ACE for the hour is less than 
or equal to 0.5 percent of its hourly average load, no charge is 
assessed for that hour.
    2) If the entity's 1-minute average ACE for the hour is greater 
than or equal to 1.5 percent of the entity's hourly average load, WALC 
assess charges using the hourly load-based assessment applied to the 
entity's peak load for that month.

[[Page 58508]]

    3) If the entity's 1-minute average ACE for the hour is greater 
than 0.5 percent but less than 1.5 percent of its hourly average load, 
WALC assesses charges based on linear interpolation of no charge and 
full charge, using the hourly load-based assessment applied to the 
entity's peak load for that month.

WALC monitors the entity's self-provision on a regular basis. If WALC 
determines that the entity has not been attempting to self-regulate, 
WALC will, upon notification, employ the load-based assessment 
methodology described above.

Alternative Arrangements

    Exporting Intermittent Resource Requirement: An entity that exports 
the output from an intermittent generator to another BA Area will be 
required to dynamically meter or dynamically schedule that resource out 
of WALC to another BA unless arrangements, satisfactory to WALC, are 
made for that entity to acquire this service from a third-party or 
self-supply (as outlined below). An intermittent generator is one whose 
output is volatile and variable due to factors beyond direct 
operational control and, therefore, is not dispatchable.
    Self- or Third-party Supply: WALC may allow an entity to supply 
some or all of its required regulation, or contract with a third party. 
This entity must have revenue quality metering at every load and 
generation point, with accuracy as defined by NERC, to include MW flow 
data availability at 6-second (or smaller) intervals. WALC will 
evaluate the entity's metering, telecommunications and regulating 
resource, as well as the required level of regulation, to determine 
whether the entity qualifies to self-supply under this provision. If 
approved, the entity is required to enter into a separate agreement 
with WALC which will specify the terms of self-supply.

Customer Accommodation

    For entities unwilling to take Regulation Service, self-provide as 
described above, or obtain the service from a third party, WALC will 
assist the entity in dynamically metering its loads/resources to 
another BA. Until such time meter configuration is accomplished, the 
entity will be responsible for charges assessed under this schedule.

Rate Schedule DSW-EI4

SCHEDULE 4 to OATT

(Supersedes Schedule DSW-EI3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

ENERGY IMBALANCE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Energy Imbalance Service is provided when there is a difference 
between the scheduled and actual delivery of energy to a load located 
within a Balancing Authority Area (BA Area) over a single hour. The 
Transmission Service Provider (TSP) or the Balancing Authority (BA) who 
performs this function for the TSP must offer this service when 
transmission is used to serve load within its BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must 
purchase this service from WALC or make alternative comparable 
arrangements to satisfy their Energy Imbalance obligations. Non-Federal 
TSPs must have separate agreements with WALC that specify the terms of 
Energy Imbalance Service. WALC may charge a transmission customer for 
either energy imbalances under this schedule or generator imbalances 
under Schedule 9 for imbalances occurring during the same hour, but not 
both unless the imbalances aggravate rather than offset each other.

Formula Rate

    Charges for energy imbalances are based on the deviation bands as 
follows:
    1. For deviations within 1.5 percent (with a minimum of 
4 MW) of the metered load, the settlement for on-peak and off-peak 
hours is 100 percent.
    2. For deviations greater than 1.5 up to 7.5 percent 
(or greater than 4 MW up to 10 MW) of the metered load, the settlement 
for on-peak hours is 110 percent for under-delivery and 90 percent for 
over-delivery, and the settlement for off-peak hours is 110 percent for 
under-delivery and 75 percent for over-delivery.
    3. For deviations greater than 7.5 percent (or 10 MW) 
of the metered load, the settlement for on-peak hours is 125 percent 
for under-delivery and 75 percent for over-delivery, and the settlement 
for off-peak hours is 125 percent for under-delivery and 60 percent for 
over-delivery.

The deviation bands will be applied hourly and any energy imbalances 
that occur as a result of the transmission customer's scheduled 
transactions will be netted on a monthly basis and settled financially 
at the end of the month. For purposes of this schedule, the proxy 
prices used to determine financial settlement will be derived from the 
Palo Verde electricity price indexes, or similar alternative, for on-
peak and off-peak. WALC may accept settlement in energy in lieu of 
financial settlement.
    During periods of BA operating constraints, WALC reserves the right 
to eliminate credits for over-delivery. The cost to WALC of any penalty 
assessed by a regulatory authority due to a violation of operating 
standards resulting from under or over-delivery of energy may be passed 
through to customers.

Rate Schedule DSW-SPR4

SCHEDULE 5 to OATT

(Supersedes Schedule DSW-SPR3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

OPERATING RESERVE--SPINNING RESERVE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Spinning Reserve Service is needed to serve load immediately in the 
event of a system contingency and may be provided by generating units 
that are on-line and loaded at less than maximum output. The 
Transmission Service Provider (TSP) or the Balancing Authority (BA) who 
performs this function for the TSP must offer this service when 
transmission is used to serve load within its BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must

[[Page 58509]]

purchase this service from WALC or make alternative arrangements to 
satisfy their Spinning Reserve obligations.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.038

    WALC has no Spinning Reserves available for sale. Upon request, 
WALC will purchase at market price and pass-through the cost plus an 
administrative fee that covers the cost of procuring and supplying 
Spinning Reserves. The customer will be responsible for providing the 
transmission needed to deliver the Spinning Reserves purchased.

Rate Schedule DSW-SUR4

SCHEDULE 6 to OATT

(Supersedes Schedule DSW-SPR3

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

OPERATING RESERVE--SUPPLEMENTAL RESERVE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Supplemental Reserve Service is needed to serve load in the event 
of a system contingency. It is not available immediately to serve load 
but is generally available within a short period of time after a system 
contingency event. This service may be provided by generating units 
that are on-line but unloaded, by quick-start generation, or by 
interruptible load. The Transmission Service Provider (TSP) or the 
Balancing Authority (BA) who performs this function for the TSP must 
offer this service when transmission is used to serve load within its 
BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must 
purchase this service from WALC or make alternative arrangements to 
satisfy their Supplemental Reserve obligations.

Formula Rate

------------------------------------------------------------------------
 
-------------------------------------------------------------------
Cost of Service = Market Price + Administrative Fee
------------------------------------------------------------------------

    WALC has no Supplemental Reserves for sale. Upon request, WALC will 
purchase at market price and pass-through the cost plus an 
administrative fee that covers the cost of procuring and supplying 
Supplemental Reserves. The customer will be responsible for providing 
the transmission needed to deliver.

Rate Schedule DSW-GI2

SCHEDULE 9 to OATT

(Supersedes Schedule DSW-GI1)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

GENERATOR IMBALANCE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Generator Imbalance Service is provided when a difference occurs 
between the output of a generator located in the Balancing Authority 
Area (BA Area) and the delivery schedule from that generator to another 
BA Area or a load within the Transmission Service Provider's (TSP) BA 
Area over a single hour. The TSP or the Balancing Authority (BA) who 
performs this function for the TSP must offer this service, to the 
extent it is physically feasible to do so from its resources or from 
resources available to it, when transmission is used to deliver energy 
from a generator located within its BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must 
purchase this service from WALC or make alternative comparable 
arrangements to satisfy their Generator Imbalance obligations. Non-
Federal TSPs must have separate agreements with WALC that specify the 
terms of Generator Imbalance Service. An intermittent resource serving 
load outside WALC will be required to dynamically schedule or 
dynamically meter their generation to another BA Area unless 
arrangements, satisfactory to WALC, are made to acquire this service 
from a third-party. An intermittent resource, for the limited purpose 
of this 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.
    WALC may charge a transmission customer for either generator 
imbalances under this schedule or energy imbalances under Schedule 4 
for imbalances occurring during the same hour, but not both unless the 
imbalances aggravate rather than offset each other.

Formula Rate

    Charges for generator imbalances are based on the deviation bands 
as follows:
    1. For deviations within 1.5 percent (with a minimum of 
4 MW) of the metered generation, the settlement for on-peak and off-
peak hours is 100 percent.
    2. For deviations greater than 1.5 up to 7.5 percent 
(or greater than 4 MW up to 10 MW) of the metered generation, the 
settlement for on-peak hours is 110 percent for under-delivery and 90 
percent for over-delivery, and the settlement for off-peak hours is 110 
percent for under-delivery and 75 percent for over-delivery.
    3. For deviations greater than 7.5 percent (or 10 MW) 
of the metered generation, the settlement for on-peak hours is 125 
percent for under-delivery and 75 percent for over-delivery, and the 
settlement for off-peak hours is 125 percent for under-delivery and 60 
percent for over-delivery. An intermittent resource will be exempt from 
this deviation band but will be subject to the settlement provisions in 
the second deviation band for all deviations greater than 7.5 percent (or 10 MW).
    The deviation bands will be applied hourly and any generator 
imbalances that occur as a result of the transmission customer's 
scheduled transactions will be netted on a monthly basis and settled 
financially at the end of the month. For purposes of this schedule, the 
proxy prices used to determine financial settlement will be derived 
from the Palo Verde electricity price indexes, or

[[Page 58510]]

similar alternative, for on-peak and off-peak. WALC may accept 
settlement in energy in lieu of financial settlement.
    During periods of BA operating constraints, WALC reserves the right 
to eliminate credits for over-delivery. The cost to WALC of any penalty 
assessed by a regulatory authority due to a violation of operating 
standards resulting from under or over-delivery of energy may be passed 
through to customers.

[FR Doc. 2016-20397 Filed 8-24-16; 8:45 am]
 BILLING CODE 6450-01-P