Boulder Canyon Project, 64147-64149 [2016-22465]

Download as PDF Federal Register / Vol. 81, No. 181 / Monday, September 19, 2016 / Notices skills gained both in and out of school environments. PISA 2018 will focus on reading literacy as the major domain. Mathematics and science literacy will also be assessed as minor domains, with additional assessments of global competence and financial literacy. In addition to the cognitive assessments described above, PISA 2018 will include questionnaires administered to assessed students, school principals, and teachers. To prepare for the main study in 2018, NCES will conduct a PISA field test from April–May 2017 to evaluate newly developed assessment and questionnaire items, to test the assessment operations, and to test school recruitment, data collection, and data management procedures. The PISA main study will be conducted in the U.S. from September–November 2018. This submission requests approval for: Recruitment and pre-assessment activities for the 2017 field test sample; administration of the field test; and recruitment of schools for the 2018 main study sample. Dated: September 14, 2016. Kate Mullan, Acting Director, Information Collection Clearance Division, Office of the Chief Privacy Officer, Office of Management. [FR Doc. 2016–22443 Filed 9–16–16; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY Western Area Power Administration Boulder Canyon Project Western Area Power Administration, DOE. ACTION: Notice of approval for Fiscal Year 2017 base charge and rates. AGENCY: In this notice, the Western Area Power Administration (WAPA) establishes the Fiscal Year (FY) 2017 base charge and rates for Boulder Canyon Project (BCP) electric service, as approved by the Deputy Secretary of Energy (Deputy Secretary). The base charge will provide sufficient revenue to cover all annual costs, including interest expense, and to repay investments within the allowable period. DATES: The base charge and rates will be 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billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2017, or until superseded. FOR FURTHER INFORMATION CONTACT: Mr. Ronald E. Moulton, Regional Manager, Desert Southwest Region, Western Area Power Administration, P.O. Box 6457, mstockstill on DSK3G9T082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 21:47 Sep 16, 2016 Jkt 238001 Phoenix, AZ 85005–6457, (602) 605– 2453, email rmoulton@wapa.gov, 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: Hoover Dam, authorized by the Boulder Canyon Project Act (45 Stat. 1057, December 21, 1928), sits on the Colorado River along the Arizona and Nevada border. The Hoover Dam power plant has 19 generating units (two for plant use) and an installed capacity of 2,078,800 kilowatts (kW) (4,800 kW for plant use). High-voltage transmission lines and substations connect BCP power to consumers in southern Nevada, Arizona, and southern California. Electric service rates are adjusted annually using an existing rate formula established on April 19, 1996. The rate formula requires BCP power customers to pay a base charge (expressed in dollars), rather than a rate, for their power. The base charge is calculated to generate sufficient revenue to cover all annual costs, including interest expense, and to repay investments within allowable time periods. The base charge is allocated to each BCP power customer in proportion to its allocation of Hoover power. The composite power rate, expressed in mills per kilowatthour (mills/kWh), is calculated by dividing the base charge by energy sales in a year. However, it is the base charge and not the power rate that is used to calculate BCP customers’ bills. Rate Schedule BCP–F9 under Rate Order No. WAPA–171 was approved on an interim basis by the Deputy Secretary for a five-year period beginning October 1, 2015, and ending September 30, 2020.1 This rate schedule, which was approved by the Federal Energy Regulatory Commission (FERC) on a final basis on December 11, 2015, requires the base charge be calculated annually based on current financial and hydrological data.2 This notice sets forth the calculation for the FY 2017 BCP base charge. The FY 2017 base charge for BCP electric service is $69,662,289, a 9.3 percent increase from the FY 2016 base charge of $63,735,856. The primary factors contributing to the change in the base charge are prior year carryover and total expenses. Prior year carryover, the difference between the previous year’s base charge and expense, has decreased by $9 million, or 62.7 percent. Prior year carryover offset current year expenses, thereby reducing the base charge. In FY 1 80 FR 44098 (July 24, 2015). No. EF15–7–000 (153 FERC ¶ 62,189). 2 Docket PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 64147 2014, carryover increased significantly when customers repaid certain capitalized investments. Since that time carryover has steadily decreased, contributing to the increase in the FY 2017 base charge. Total expenses, which include operation, maintenance and replacement costs, increased by $6 million, or 9.2 percent, while other expenses such as the uprating credit program and Hoover Dam Visitor Center costs decreased by $10 million, or 37 percent. Despite the overall expense decrease of $4 million, the FY 2017 base charge is increasing due to the reduction of prior year carryover. The FY 2017 composite rate of 19.63 mills/kWh increased 7.11 percent compared to the FY 2016 composite rate of 18.33 mills/kWh. The FY 2017 energy rate of 9.82 mills/kWh increased 7.11 percent compared to the FY 2016 energy rate of 9.17 mills/kWh. The FY 2017 capacity rate of $1.89/kW-month increased 9.8 percent compared to the FY 2016 capacity rate of $1.72/kWmonth. Energy sales are forecast to increase 2 percent from FY 2016 while FY 2017 capacity sales are expected to decrease 0.5 percent due to poor hydrological conditions. The increase in the FY 2017 base charge is the primary driver behind the increases in the composite, energy and capacity rates. The base charge and rates were calculated using WAPA’s FY 2016 Final Master Schedule which provides FY 2017 energy and capacity sales projections. The following summarizes the steps taken by WAPA to ensure involvement of all interested parties in determining the base charge and rates: 1. A Federal Register notice was published on April 4, 2016 (81 FR 19169), announcing the proposed rate adjustment process, initiating a public consultation and comment period, announcing public information and public comment forums, and presenting procedures for public participation. 2. Discussion of the proposal occurred at two informal BCP Contractor meetings held April 5, 2016, in Phoenix, Arizona and April 12, 2016, via web conference. Representatives from WAPA and the Bureau of Reclamation (Reclamation) explained the basis for the estimates used to calculate the base charge and rates and held a question and answer session. 3. At the public information forum held on April 27, 2016, in Phoenix, Arizona, WAPA and Reclamation representatives explained the proposed base charge and rates for FY 2017 and held a question and answer session at these informal meetings. E:\FR\FM\19SEN1.SGM 19SEN1 mstockstill on DSK3G9T082PROD with NOTICES 64148 Federal Register / Vol. 81, No. 181 / Monday, September 19, 2016 / Notices 4. A public comment forum held on May 25, 2016, in Phoenix, Arizona, provided the public with an opportunity to comment for the record. 5. WAPA received several comments during the 90-day consultation and comment period ending July 5, 2016. Comments and responses, paraphrased for brevity when not affecting the meaning of the statement, are presented below. Comment: Commenters objected to the expense WAPA incurred to negotiate electric service contracts for the Post-2017 marketing period. Response: Department of Energy Order RA 6120.2 requires the recovery of all costs of operating and maintaining a power system. It was necessary and appropriate to incur costs associated with negotiating the Post-2017 electric service contracts and implementation agreement. During the negotiations, WAPA remained mindful of costs incurred and was prudent in managing travel and related expenses. Comment: A commenter questioned why the FY 2017 base charge has cost increases for power marketing when the negotiations for the Post-2017 electric service contracts have concluded. Response: The commenter is correct in pointing out that negotiations on the Post-2017 electric service contracts concluded in 2016. The increase in power marketing costs in the FY 2017 base charge is necessary to implement and support the 31 additional electric service contracts that will be in effect during the Post-2017 marketing period. Comment: A commenter expressed concern regarding changes to WAPA’s General Western Allocation, which is a component of the Facility Expenses cost category. Response: WAPA provided a detailed explanation of cost allocation changes that affect the General Western Allocation during a customer meeting held on August 23, 2016. WAPA will continue to provide customers with detailed explanations of changes in BCP costs. Comment: A commenter encouraged Reclamation and WAPA to separately account for Post-Retirement Benefit (PRB) expenses collected during each marketing period in the event a refund is given for those expenses. Response: Reclamation and WAPA are able to identify the PRB expenses collected in each marketing period, inclusive of any refunds. Comment: A commenter asked for an update on a customer audit of the BCP and whether the audit will impact the FY 2017 base charge. Response: The BCP contractors designated an audit selection committee VerDate Sep<11>2014 21:47 Sep 16, 2016 Jkt 238001 to oversee the selection process of a new audit firm. Southern California Public Power Authority plans to administer the contract. This audit will not affect the FY 2017 base charge and rates as any findings will not be identified until after the FY 2017 base charge and rates are in effect. Comment: A commenter requested that detailed presentations be made when the FY 2018 base charge is proposed so new contractors can better understand the proposal. Response: WAPA will increase the level of detail presented in future presentations and supporting documentation and work with new contractors to assist them in understanding the proposed base charge. Comment: A commenter requested the current Ten Year Operating Plan and supporting documentation for the FY 2017 base charge. Response: Reclamation has sent new and existing contractors the latest Ten Year Operating Plan. Supporting documentation for the base charge is available on WAPA’s Web site at https://www.wapa.gov/regions/DSW/ Rates/Pages/boulder-canyon-rates.aspx. Electric Service Rates The base charge and the resulting calculated rates for electric service are designed to recover expenses including operation and maintenance, payments to states, visitor services, the uprating program, replacements, investment repayment, and accumulated interest. WAPA’s power repayment study (PRS) allocates the base charge for electric service equally between capacity and energy. Availability of Information Information about this base charge and rate adjustment, including the PRS, comments, letters, memorandums, and other supporting material developed or maintained by WAPA and used to develop the FY 2017 base charge and rates is available for public review at the Desert Southwest Region, Western Area Power Administration, 615 South 43rd Avenue, Phoenix, AZ 85009. The information is also available on WAPA’s Web site at https://www.wapa.gov/ regions/DSW/Rates/Pages/bouldercanyon-rates.aspx. Ratemaking Procedure Requirements BCP electric service rates are developed under the Department of Energy Organization Act (42 U.S.C. 7101–7352), through which the power marketing functions of the Secretary of the Interior under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 amended and supplemented by subsequent enactments, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and other acts that specifically apply to the project involved, were transferred to and vested in the Secretary of Energy, acting by and through WAPA. 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; and (3) the authority to confirm, approve, and place into effect on a final basis, to remand or to disapprove such rates to the FERC. Existing Department of Energy procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985 (50 FR 37835). Department of Energy procedures were followed by WAPA in developing the rate formula approved by FERC on December 11, 2015.3 The Boulder Canyon Project Implementation Agreement (BCPIA) requires that WAPA determine the annual base charge and rates for the next fiscal year before October 1 of each rate year. The rates for the first rate year, and each fifth rate year thereafter, become effective provisionally upon approval by the Deputy Secretary subject to final approval by FERC. For all other rate years, as is the case for FY 2017, the rates become effective on a final basis upon approval by the Deputy Secretary. In accordance with 10 CFR part 904, effective June 1, 1987, and the BCPIA, the rates are reviewed annually and adjusted to assure sufficient revenues are collected to achieve payment of all costs and financial obligations associated with the project. Each fiscal year, WAPA prepares a PRS for the BCP to update actual revenues and expenses, including interest, estimates of future revenues, operating expenses, and capitalized costs. Consistent with procedures set forth in 10 CFR parts 903 and 904 and 18 CFR part 300, WAPA held a consultation and comment period. The notice of the proposed FY 2017 base charge and rates for electric service was published in the Federal Register on April 4, 2016 (81 FR 19169). Under Delegation Order Nos. 00– 037.00A and 00–001.00F and in compliance with 10 CFR parts 903 and 904, I hereby approve the FY 2017 base charge and rates for BCP electric service 3 Docket E:\FR\FM\19SEN1.SGM No. EF15–7–000 (153 FERC ¶ 62,189). 19SEN1 Federal Register / Vol. 81, No. 181 / Monday, September 19, 2016 / Notices on a final basis under Rate Schedule BCP–F9 through September 30, 2017. Dated: September 12, 2016. Elizabeth Sherwood-Randall, Deputy Secretary of Energy. [FR Doc. 2016–22465 Filed 9–16–16; 8:45 am] BILLING CODE 6450–01–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OPP–2015–0794; FRL–9947–88] Registration Review; Draft Ecological and/or Human Health Risk Assessments; Notice of Availability Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: This notice announces the availability of EPA’s draft human health and ecological risk assessments for the registration review of carfentrazoneethyl, copper compounds, mineral acids, spinosad, and spinetoram and opens a public comment period on these documents. Registration review is EPA’s periodic review of pesticide registrations to ensure that each pesticide continues to satisfy the statutory standard for registration, that is, the pesticide can perform its intended function without unreasonable adverse effects on human health or the environment. As part of the registration review process, the Agency has completed comprehensive draft human health and/or ecological risk assessments for all chemicals listed in the Table of Unit III. After reviewing comments received during the public comment period, EPA will issue revised risk assessments, explain any changes to the draft risk assessments, and respond to comments and may request public input on risk mitigation before completing proposed registration review decisions for the chemicals listed in the Table of Unit III. Through this program, EPA is ensuring that each pesticide’s registration is based on current scientific and other knowledge, including its effects on human health and the environment. DATES: Comments must be received on or before November 18, 2016. ADDRESSES: Submit your comments, identified by docket identification (ID) number EPA–HQ–OPP–2015–0794, by one of the following methods: • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the online instructions for submitting comments. Do not submit electronically any information you consider to be mstockstill on DSK3G9T082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 21:47 Sep 16, 2016 Jkt 238001 Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. • Mail: OPP Docket, Environmental Protection Agency Docket Center (EPA/ DC), (28221T), 1200 Pennsylvania Ave. NW., Washington, DC 20460–0001. • Hand Delivery: To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at http:// www.epa.gov/dockets/contacts.html. Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at http:// www.epa.gov/dockets. FOR FURTHER INFORMATION CONTACT: For pesticide specific information contact: The Chemical Review Manager listed in the Table of Unit III. For general questions on the registration review program, contact: Richard Dumas, Pesticide Re-Evaluation Division (7508P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460–0001; telephone number: (703) 308–8015; email address:dumas.richard@epa.gov. SUPPLEMENTARY INFORMATION: I. General Information A. Does this action apply to me? This action is directed to the public in general, and may be of interest to a wide range of stakeholders including environmental, human health, farm worker, and agricultural advocates; the chemical industry; pesticide users; and members of the public interested in the sale, distribution, or use of pesticides. Since others also may be interested, the Agency has not attempted to describe all the specific entities that may be affected by this action. If you have any questions regarding the applicability of this action to a particular entity, consult the Chemical Review Manager listed in the Table of Unit III. B. What should I consider as I prepare my comments for EPA? 1. Submitting CBI. Do not submit this information to EPA through regulations.gov or email. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD–ROM that you mail to EPA, mark the outside of the disk or CD–ROM as CBI and then identify electronically within the disk or CD–ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 64149 contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 2. Tips for preparing your comments. When preparing and submitting your comments, see the commenting tips at http://www.epa.gov/dockets/ comments.html. 3. Environmental justice. EPA seeks to achieve environmental justice, the fair treatment and meaningful involvement of any group, including minority and/or low income populations, in the development, implementation, and enforcement of environmental laws, regulations, and policies. To help address potential environmental justice issues, the Agency seeks information on any groups or segments of the population who, as a result of their location, cultural practices, or other factors, may have atypical or disproportionately high and adverse human health impacts or environmental effects from exposure to the pesticides discussed in this document, compared to the general population. II. Authority EPA is conducting its registration review of the chemicals listed in the Table of Unit III pursuant to section 3(g) of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Procedural Regulations for Registration Review at 40 CFR part 155, subpart C. Section 3(g) of FIFRA provides, among other things, that the registrations of pesticides are to be reviewed every 15 years. Under FIFRA, a pesticide product may be registered or remain registered only if it meets the statutory standard for registration given in FIFRA section 3(c)(5) (7 U.S.C. 136a(c)(5)). When used in accordance with widespread and commonly recognized practice, the pesticide product must perform its intended function without unreasonable adverse effects on the environment; that is, without any unreasonable risk to man or the environment, or a human dietary risk from residues that result from the use of a pesticide in or on food. III. Registration Reviews As directed by FIFRA section 3(g), EPA is reviewing the pesticide registrations for the chemicals listed in the Table in this Unit to ensure that they continue to satisfy the FIFRA standard for registration—that is, that these chemicals can still be used without unreasonable adverse effects on human health or the environment. E:\FR\FM\19SEN1.SGM 19SEN1

Agencies

[Federal Register Volume 81, Number 181 (Monday, September 19, 2016)]
[Notices]
[Pages 64147-64149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22465]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of approval for Fiscal Year 2017 base charge and rates.

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

SUMMARY: In this notice, the Western Area Power Administration (WAPA) 
establishes the Fiscal Year (FY) 2017 base charge and rates for Boulder 
Canyon Project (BCP) electric service, as approved by the Deputy 
Secretary of Energy (Deputy Secretary). The base charge will provide 
sufficient revenue to cover all annual costs, including interest 
expense, and to repay investments within the allowable period.

DATES: The base charge and rates will be 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, 2017, 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, email 
rmoulton@wapa.gov, 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: Hoover Dam, authorized by the Boulder Canyon 
Project Act (45 Stat. 1057, December 21, 1928), sits on the Colorado 
River along the Arizona and Nevada border. The Hoover Dam power plant 
has 19 generating units (two for plant use) and an installed capacity 
of 2,078,800 kilowatts (kW) (4,800 kW for plant use). High-voltage 
transmission lines and substations connect BCP power to consumers in 
southern Nevada, Arizona, and southern California. Electric service 
rates are adjusted annually using an existing rate formula established 
on April 19, 1996. The rate formula requires BCP power customers to pay 
a base charge (expressed in dollars), rather than a rate, for their 
power. The base charge is calculated to generate sufficient revenue to 
cover all annual costs, including interest expense, and to repay 
investments within allowable time periods. The base charge is allocated 
to each BCP power customer in proportion to its allocation of Hoover 
power. The composite power rate, expressed in mills per kilowatt-hour 
(mills/kWh), is calculated by dividing the base charge by energy sales 
in a year. However, it is the base charge and not the power rate that 
is used to calculate BCP customers' bills.
    Rate Schedule BCP-F9 under Rate Order No. WAPA-171 was approved on 
an interim basis by the Deputy Secretary for a five-year period 
beginning October 1, 2015, and ending September 30, 2020.\1\ This rate 
schedule, which was approved by the Federal Energy Regulatory 
Commission (FERC) on a final basis on December 11, 2015, requires the 
base charge be calculated annually based on current financial and 
hydrological data.\2\ This notice sets forth the calculation for the FY 
2017 BCP base charge.
---------------------------------------------------------------------------

    \1\ 80 FR 44098 (July 24, 2015).
    \2\ Docket No. EF15-7-000 (153 FERC ] 62,189).
---------------------------------------------------------------------------

    The FY 2017 base charge for BCP electric service is $69,662,289, a 
9.3 percent increase from the FY 2016 base charge of $63,735,856. The 
primary factors contributing to the change in the base charge are prior 
year carryover and total expenses. Prior year carryover, the difference 
between the previous year's base charge and expense, has decreased by 
$9 million, or 62.7 percent. Prior year carryover offset current year 
expenses, thereby reducing the base charge. In FY 2014, carryover 
increased significantly when customers repaid certain capitalized 
investments. Since that time carryover has steadily decreased, 
contributing to the increase in the FY 2017 base charge. Total 
expenses, which include operation, maintenance and replacement costs, 
increased by $6 million, or 9.2 percent, while other expenses such as 
the uprating credit program and Hoover Dam Visitor Center costs 
decreased by $10 million, or 37 percent. Despite the overall expense 
decrease of $4 million, the FY 2017 base charge is increasing due to 
the reduction of prior year carryover.
    The FY 2017 composite rate of 19.63 mills/kWh increased 7.11 
percent compared to the FY 2016 composite rate of 18.33 mills/kWh. The 
FY 2017 energy rate of 9.82 mills/kWh increased 7.11 percent compared 
to the FY 2016 energy rate of 9.17 mills/kWh. The FY 2017 capacity rate 
of $1.89/kW-month increased 9.8 percent compared to the FY 2016 
capacity rate of $1.72/kW-month. Energy sales are forecast to increase 
2 percent from FY 2016 while FY 2017 capacity sales are expected to 
decrease 0.5 percent due to poor hydrological conditions. The increase 
in the FY 2017 base charge is the primary driver behind the increases 
in the composite, energy and capacity rates. The base charge and rates 
were calculated using WAPA's FY 2016 Final Master Schedule which 
provides FY 2017 energy and capacity sales projections.
    The following summarizes the steps taken by WAPA to ensure 
involvement of all interested parties in determining the base charge 
and rates:
    1. A Federal Register notice was published on April 4, 2016 (81 FR 
19169), announcing the proposed rate adjustment process, initiating a 
public consultation and comment period, announcing public information 
and public comment forums, and presenting procedures for public 
participation.
    2. Discussion of the proposal occurred at two informal BCP 
Contractor meetings held April 5, 2016, in Phoenix, Arizona and April 
12, 2016, via web conference. Representatives from WAPA and the Bureau 
of Reclamation (Reclamation) explained the basis for the estimates used 
to calculate the base charge and rates and held a question and answer 
session.
    3. At the public information forum held on April 27, 2016, in 
Phoenix, Arizona, WAPA and Reclamation representatives explained the 
proposed base charge and rates for FY 2017 and held a question and 
answer session at these informal meetings.

[[Page 64148]]

    4. A public comment forum held on May 25, 2016, in Phoenix, 
Arizona, provided the public with an opportunity to comment for the 
record.
    5. WAPA received several comments during the 90-day consultation 
and comment period ending July 5, 2016. Comments and responses, 
paraphrased for brevity when not affecting the meaning of the 
statement, are presented below.
    Comment: Commenters objected to the expense WAPA incurred to 
negotiate electric service contracts for the Post-2017 marketing 
period.
    Response: Department of Energy Order RA 6120.2 requires the 
recovery of all costs of operating and maintaining a power system. It 
was necessary and appropriate to incur costs associated with 
negotiating the Post-2017 electric service contracts and implementation 
agreement. During the negotiations, WAPA remained mindful of costs 
incurred and was prudent in managing travel and related expenses.
    Comment: A commenter questioned why the FY 2017 base charge has 
cost increases for power marketing when the negotiations for the Post-
2017 electric service contracts have concluded.
    Response: The commenter is correct in pointing out that 
negotiations on the Post-2017 electric service contracts concluded in 
2016. The increase in power marketing costs in the FY 2017 base charge 
is necessary to implement and support the 31 additional electric 
service contracts that will be in effect during the Post-2017 marketing 
period.
    Comment: A commenter expressed concern regarding changes to WAPA's 
General Western Allocation, which is a component of the Facility 
Expenses cost category.
    Response: WAPA provided a detailed explanation of cost allocation 
changes that affect the General Western Allocation during a customer 
meeting held on August 23, 2016. WAPA will continue to provide 
customers with detailed explanations of changes in BCP costs.
    Comment: A commenter encouraged Reclamation and WAPA to separately 
account for Post-Retirement Benefit (PRB) expenses collected during 
each marketing period in the event a refund is given for those 
expenses.
    Response: Reclamation and WAPA are able to identify the PRB 
expenses collected in each marketing period, inclusive of any refunds.
    Comment: A commenter asked for an update on a customer audit of the 
BCP and whether the audit will impact the FY 2017 base charge.
    Response: The BCP contractors designated an audit selection 
committee to oversee the selection process of a new audit firm. 
Southern California Public Power Authority plans to administer the 
contract. This audit will not affect the FY 2017 base charge and rates 
as any findings will not be identified until after the FY 2017 base 
charge and rates are in effect.
    Comment: A commenter requested that detailed presentations be made 
when the FY 2018 base charge is proposed so new contractors can better 
understand the proposal.
    Response: WAPA will increase the level of detail presented in 
future presentations and supporting documentation and work with new 
contractors to assist them in understanding the proposed base charge.
    Comment: A commenter requested the current Ten Year Operating Plan 
and supporting documentation for the FY 2017 base charge.
    Response: Reclamation has sent new and existing contractors the 
latest Ten Year Operating Plan. Supporting documentation for the base 
charge is available on WAPA's Web site at https://www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-rates.aspx.

Electric Service Rates

    The base charge and the resulting calculated rates for electric 
service are designed to recover expenses including operation and 
maintenance, payments to states, visitor services, the uprating 
program, replacements, investment repayment, and accumulated interest. 
WAPA's power repayment study (PRS) allocates the base charge for 
electric service equally between capacity and energy.

Availability of Information

    Information about this base charge and rate adjustment, including 
the PRS, comments, letters, memorandums, and other supporting material 
developed or maintained by WAPA and used to develop the FY 2017 base 
charge and rates is available for public review at the Desert Southwest 
Region, Western Area Power Administration, 615 South 43rd Avenue, 
Phoenix, AZ 85009. The information is also available on WAPA's Web site 
at https://www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-rates.aspx.

Ratemaking Procedure Requirements

    BCP electric service rates are developed under the Department of 
Energy Organization Act (42 U.S.C. 7101-7352), through which the power 
marketing functions of the Secretary of the Interior under the 
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent enactments, particularly section 9(c) of the 
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and other acts 
that specifically apply to the project involved, were transferred to 
and vested in the Secretary of Energy, acting by and through WAPA.
    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; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand or to disapprove such 
rates to the FERC. Existing Department of Energy procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985 (50 FR 37835). Department of Energy 
procedures were followed by WAPA in developing the rate formula 
approved by FERC on December 11, 2015.\3\
---------------------------------------------------------------------------

    \3\ Docket No. EF15-7-000 (153 FERC ] 62,189).
---------------------------------------------------------------------------

    The Boulder Canyon Project Implementation Agreement (BCPIA) 
requires that WAPA determine the annual base charge and rates for the 
next fiscal year before October 1 of each rate year. The rates for the 
first rate year, and each fifth rate year thereafter, become effective 
provisionally upon approval by the Deputy Secretary subject to final 
approval by FERC. For all other rate years, as is the case for FY 2017, 
the rates become effective on a final basis upon approval by the Deputy 
Secretary.
    In accordance with 10 CFR part 904, effective June 1, 1987, and the 
BCPIA, the rates are reviewed annually and adjusted to assure 
sufficient revenues are collected to achieve payment of all costs and 
financial obligations associated with the project. Each fiscal year, 
WAPA prepares a PRS for the BCP to update actual revenues and expenses, 
including interest, estimates of future revenues, operating expenses, 
and capitalized costs.
    Consistent with procedures set forth in 10 CFR parts 903 and 904 
and 18 CFR part 300, WAPA held a consultation and comment period. The 
notice of the proposed FY 2017 base charge and rates for electric 
service was published in the Federal Register on April 4, 2016 (81 FR 
19169).
    Under Delegation Order Nos. 00-037.00A and 00-001.00F and in 
compliance with 10 CFR parts 903 and 904, I hereby approve the FY 2017 
base charge and rates for BCP electric service

[[Page 64149]]

on a final basis under Rate Schedule BCP-F9 through September 30, 2017.

    Dated: September 12, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.
[FR Doc. 2016-22465 Filed 9-16-16; 8:45 am]
 BILLING CODE 6450-01-P