Integrated System Rate Schedule, 837-839 [2016-31885]
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837
Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices
ESTIMATED ANNUAL BURDEN FOR GENERIC CLEARANCE
Number of
respondents
Number of
responses per
respondent
Total number
of responses
Average
burden
minutes per
response
Total burden
hours
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
15,000
1
15,000
6
3 1,500
Generic Clearance ...............................................................
Comments: Comments are invited on:
(1) Whether the collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(2) the accuracy of the agency’s estimate
of the burden and cost of the collection
of information, including the validity of
the methodology and assumptions used;
(3) ways to enhance the quality, utility
and clarity of the information collection;
and (4) ways to minimize the burden of
the collection of information on those
who are to respond, including the use
of automated collection techniques or
other forms of information technology.
Dated: December 23, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016–31662 Filed 1–3–17; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Rate Schedule
Southwestern Power
Administration, DOE.
ACTION: Notice of Rate Order.
AGENCY:
The Deputy Secretary has
approved and placed into effect on an
interim basis Rate Order No. SWPA–71,
which provides the following Integrated
System Non-Federal Transmission
Service (NFTS) Rate Schedule: Rate
Schedule NFTS–13A, Wholesale Rates
for Non-Federal Transmission Service.
FOR FURTHER INFORMATION CONTACT: Mr.
Marshall Boyken, Senior Vice President,
Chief Operating Officer, Office of
Corporate Operations, Southwestern
Power Administration, U.S. Department
of Energy, One West Third Street, Tulsa,
Oklahoma 74103, (918) 595–6646,
marshall.boyken@swpa.gov, or facsimile
transmission (918) 595–6646.
SUPPLEMENTARY INFORMATION: Pursuant
to Delegation Order Nos. 00–037.00A,
effective October 25, 2013, and 00–
001.00F, effective November 17, 2014,
Rate Order No. SWPA–71, is approved
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SUMMARY:
2 1,500
hours = 90,000 minutes.
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16:46 Jan 03, 2017
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and placed into effect on an interim
basis for the period January 1, 2017,
through September 30, 2017, pursuant
to the following rate schedule: Rate
Schedule NFTS–13A, Wholesale Rates
for Non-Federal Transmission Service,
which supersedes the existing Rate
Schedule NFTS–13, Wholesale Rates for
Non-Federal Transmission Service.
Southwestern Power Administration’s
(Southwestern) Administrator has
determined that an additional section
within Southwestern’s Integrated
System NFTS Rate Schedule is
necessary to better align Southwestern’s
rate schedule with standard practices
utilized by the Southwest Power Pool,
Inc. (SPP) Regional Transmission
Organization. The new section 2.3.6
establishes a procedure for determining
an Annual Revenue Requirement (ARR)
for customers that choose to contract for
Network Integration Transmission
Service (NITS) on Southwestern’s
transmission system pursuant to the
SPP Open Access Transmission Tariff
(OATT).
The NFTS–13 Rate Schedule included
a stated rate for NITS that is calculated
by dividing Southwestern’s monthly
revenue requirement, derived from
Southwestern’s NFTS ARR identified
within the Southwestern 2013
Integrated System Power Repayment
Studies (PRS), by the net transmission
capacity available for NITS. Modifying
Southwestern’s rate schedule to include
an ARR for SPP NITS, rather than
applying a stated rate better aligns with
standard practices utilized by SPP.
Therefore, in place of applying the NITS
stated rate for SPP NITS on
Southwestern’s transmission system, the
proposed Section 2.3.6 includes a
procedure for determining and updating
an SPP NITS ARR, as a portion of
Southwestern’s NFTS ARR, based on
the amount of revenue assumed to be
recovered on an annual basis from NITS
customers in each approved PRS. If
additional customers choose to contract
for SPP NITS on Southwestern’s
transmission system, the new Section
2.3.6 methodology updates the SPP
NITS ARR. The title of the NFTS–13
Rate Schedule was changed to NFTS–
PO 00000
Frm 00023
Fmt 4703
Sfmt 4703
13A to reflect the addition of Section
2.3.6.
The Southwestern 2013 PRS indicated
that rates (total Southwestern NFTS
ARR) prescribed by NFTS–13,
Wholesale Rates for Non-Federal
Transmission Service, as approved in
Docket No. EF14–1–000, for the period
October 1, 2013, through September 30,
2017, are sufficient to meet repayment
criteria and will have no impact on the
amortization or status of repayment
forecasted in the Southwestern 2013
PRS and will not require rate changes.
Revenues based on current rates remain
sufficient to meet repayment criteria.
The Southwestern Administrator has
followed Title 10, Part 903, Subpart A
of the Code of Federal Regulations,
‘‘Procedures for Public Participation in
Power and Transmission Rate
Adjustments and Extensions,’’ in
connection with the rate schedule
revisions. The public was advised by
notice published in the Federal Register
(81 FR 75814), November 1, 2016, of the
proposed rate schedule change and of
the opportunity to provide written
comments for a period of 30 days
ending December 1, 2016. One customer
provided comments during the period of
public participation related to the
proposed rate schedule change, which
consisted of some clarifying questions
that Southwestern answered and one
comment on phrasing that Southwestern
acknowledged.
Information regarding this rate
proposal, including studies and other
supporting material, and comments
received is available for public review
in the offices of Southwestern Power
Administration, Williams Tower I, One
West Third Street, Tulsa, Oklahoma
74103. Following review of
Southwestern’s proposal within the
Department of Energy, I approve Rate
Order No. SWPA–71.
E:\FR\FM\04JAN1.SGM
04JAN1
838
Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices
Dated: December 23, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary.
United States of America
Department of Energy
Deputy Secretary
In the matter of: Southwestern Power
Administration Integrated System NonFederal Transmission Service Rate Schedule
Rate Order No. SWPA–71
ORDER CONFIRMING, APPROVING
AND PLACING REVISED POWER
RATE SCHEDULES IN EFFECT ON AN
INTERIM BASIS
Pursuant to Sections 302(a) and
301(b) of the Department of Energy
Organization Act, Public Law 95-91, the
functions of the Secretary of the Interior
and the Federal Power Commission
under Section 5 of the Flood Control
Act of 1944, 16 U.S.C. 825s, relating to
the Southwestern Power Administration
(Southwestern) were transferred to and
vested in the Secretary of Energy. By
Delegation Order No. 00–037.00A, the
Secretary of Energy delegated to the
Administrator of Southwestern the
authority to develop power and
transmission rates, delegated to the
Deputy Secretary of the Department of
Energy the authority to confirm,
approve, and place in effect such rates
on an interim basis and delegated to the
Federal Energy Regulatory Commission
(FERC) the authority to confirm and
approve on a final basis or to disapprove
rates developed by the Administrator
under the delegation. Pursuant to that
delegated authority, the Deputy
Secretary has issued this interim rate
order.
mstockstill on DSK3G9T082PROD with NOTICES
BACKGROUND
In July 2013, Southwestern completed
its review of the adequacy of the current
rate schedules for the Integrated System
and finalized its 2013 Power Repayment
Studies (2013 PRS). The studies
indicated that the proposed rates would
meet cost recovery criteria for the
Integrated System, including the
identified Non-Federal Transmission
Service (NFTS) Annual Revenue
Requirement (ARR). The Federal Energy
Regulatory Commission (FERC)
confirmation and approval of the
following Integrated System rate
schedules was provided in a FERC order
issued in Docket No. EF14–1–000 on
January 9, 2014,1 for the period October
1, 2013, through September 30, 2017:
Rate Schedule P–13, Wholesale Rates
for Hydro Peaking Power
1 146
FERC ¶62,016
VerDate Sep<11>2014
16:46 Jan 03, 2017
Jkt 241001
Rate Schedule NFTS–13, Wholesale
Rates for Point-to-Point and Network
Transmission Service
Rate Schedule EE–13, Wholesale Rate
for Excess Energy
Based on operations under the approved
rate schedules, the Administrator
determined that an additional section
outlining a new methodology within
Southwestern’s Integrated System NonFederal Transmission Service (NFTS–
13) Rate Schedule is necessary to better
align Southwestern’s rate schedule with
standard practices utilized by the
Southwest Power Pool, Inc. (SPP)
Regional Transmission Organization. A
new section 2.3.6 is proposed that
establishes a procedure for determining
an ARR for customers that choose to
contract for Network Integration
Transmission Service (NITS) on
Southwestern’s transmission system
pursuant to the SPP Open Access
Transmission Tariff (OATT).
The new Section 2.3.6 does not
change Southwestern’s NFTS ARR, as
determined in its 2013 PRS, but rather
replaces the current stated-rate for SPP
NITS with a revenue-requirement based
methodology that includes determining
the SPP NITS ARR portion of
Southwestern’s NFTS ARR.
Furthermore, the new Section 2.3.6
affects only those customers that choose
to contract for SPP NITS on
Southwestern’s transmission system
under the SPP OATT.
The designation of the
aforementioned rate schedule has been
revised from NFTS–13 to NFTS–13A to
reflect that an addition has been made.
Southwestern followed Title 10, Part
903 Subpart A, of the Code of Federal
Regulations, ‘‘Procedures for Public
Participation in Power and
Transmission Rate Adjustments and
Extensions’’ (Part 903) in connection
with the proposed Rate Schedule
NFTS-13A. An opportunity for
customers and other interested members
of the public to review and comment on
the proposed rate schedule was
announced by notice published in the
Federal Register November 1, 2016, (81
FR 75814), with written comments due
by December 1, 2016. One customer
provided comments during the period of
public participation related to the
proposed rate schedule change, which
consisted of some clarifying questions
that Southwestern answered and one
comment on phrasing that Southwestern
acknowledged.
DISCUSSION
The NFTS–13 Rate Schedule includes
a stated rate for NITS that is calculated
by dividing Southwestern’s monthly
revenue requirement, derived from
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
Southwestern’s NFTS ARR identified
within the 2013 PRS, by the net
transmission capacity available for
NITS. Modifying Southwestern’s rate
schedule to include an ARR for SPP
NITS, rather than applying a stated rate,
better aligns with standard practices
utilized by SPP. Therefore, in place of
applying the NITS stated rate for SPP
NITS on Southwestern’s transmission
system, the new Section 2.3.6 in NFTS–
13A includes a procedure for
determining and updating an SPP NITS
ARR, as a portion of Southwestern’s
NFTS ARR, based on the amount of
revenue assumed to be recovered on an
annual basis from NITS customers in
each approved PRS. If additional
customers choose to contract for SPP
NITS on Southwestern’s transmission
system, the proposed Section 2.3.6
methodology updates the SPP NITS
ARR.
COMMENTS AND RESPONSES
Southwestern received comments
from one customer during the period of
public participation related to the
proposed rate schedule change, which
consisted of some clarifying questions
that Southwestern answered and one
comment on phrasing that Southwestern
acknowledged. Southwestern made no
change to the proposed rate schedule as
a result of the questions and comment
received. The questions and comment,
with Southwestern’s responses in
underlined text, are detailed below.
Questions:
1. Will NITS for delivery to loads
within Southwestern’s system only be
available under the terms of the SPP
OATT? Yes, for new transmission
service. Additionally, as current
Southwestern transmission service
agreements expire (for grandfathered
service or service under Southwestern’s
OATT), they will not be renewed; so if
continued service is desired, it would be
under a new SPP OATT agreement.
If not, under what conditions may a
customer elect to take Southwestern
NITS? Per Southwestern’s agreement
with SPP, which is filed as Attachment
AD of the SPP OATT, new Southwestern
OATT NITS agreements will not be
entered into.
2. Approximately how many MWs of
Southwestern NITS Capacity are
currently reserved? 66 MW is currently
reserved as NITS under both the
Southwestern and SPP OATTs.
3. Will current Southwestern NITS
customers be allowed to renew their
Southwestern NITS Agreement(s), or
will they transition to SPP NITS? As
current Southwestern transmission
service agreements expire (for
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04JAN1
Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices
grandfathered service or service under
Southwestern’s OATT), they will not be
renewed; so if continued service is
desired, it would be under a new SPP
OATT agreement, per SPP OATT
Attachment AD.
4. Do you expect Section 2.3.5. to
apply to both SPP NITS and
Southwestern NITS? I believe the peak
billing demand methodology is
different. Section 2.3.5 applies to
Southwestern NITS only. The new
Section 2.3.6 applies to SPP NITS only.
5. My understanding is that SPP bills
NITS load on a 12CP basis, whereas,
Southwestern bills NITS load on a 1CP
basis (per 2.3.5). Is it correct that NITS
Transmission Customers on
Southwestern’s system will pay less for
SPP NITS service than for equivalent
Southwestern NITS service?
Southwestern NITS customers are billed
on a 1 CP basis and SPP NITS
customers are billed on 12 CP basis,
both in accordance with their respective
OATT’s.
As to whether or not SPP NITS will
cost less than Southwestern NITS,
several factors will have to be assessed
to make that determination, including
the entities’ proportion of load at the
time of the monthly CP and the amount
of transmission service reserved that
was transitioned to SPP NITS (per the
proposed Section 2.3.6). Additionally,
entities choosing to utilize SPP NITS
will be subject to various SPP charges
(i.e. Schedule 11) that may add cost to
the SPP NITS. The analysis of these
costs can only be determined by the
particular customer and their unique set
of circumstances. Therefore, a statement
that conveys certainty of a lower cost for
SPP NITS cannot be made.
Comment:
mstockstill on DSK3G9T082PROD with NOTICES
1. There are several general references
in the proposed NFTS–13A to Network
Integration Transmission Service. In a
few instances, the document refers to
SPP NITS or Southwestern NITS. I think
it would be good to clarify in each
instance if we are referring to SPP NITS,
Southwestern NITS, or both. Comment
acknowledged. We will review the
language and ensure the final rate
schedule has clarity between SPP NITS
and Southwestern NITS.
AVAILABILITY OF INFORMATION
Information regarding this rate
schedule change is available for public
review in the offices of Southwestern
Power Administration, Williams Tower
I, One West Third Street, Tulsa,
Oklahoma 74103.
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16:46 Jan 03, 2017
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ADMINISTRATOR’S CERTIFICATION
The revised rate schedule will repay
all costs of the Integrated System
including amortization of the power
investment consistent with the
provisions of Department of Energy
Order No. RA 6120.2. In accordance
with Delegation Order Nos. 00–037.00A,
effective October 25, 2013, and 00–
001.00F, effective November 17, 2014,
and Section 5 of the Flood Control Act
of 1944, the Administrator has
determined that the proposed Integrated
System rate schedule is consistent with
applicable law and the lowest possible
rates consistent with sound business
principles.
ENVIRONMENT
839
revenues of the power system; or (2) is
for a power system that has either
annual sales normally less than 100
million kilowatt hours or an installed
capacity of less than 20,000 kilowatts.
When consistent with the APA, DOE
regulations also provide that the
effective date of rate schedules put into
effect on an interim basis by the Deputy
Secretary may be sooner than 30 days
after the Deputy Secretary’s decision
when making a minor rate adjustment.
Additionally, DOE emphasizes that
there were no substantive issues or
concerns raised during the public
comment period for the NFTS–13A rate
schedule action.
ORDER
In view of the foregoing and pursuant
to the authority delegated to me by the
Secretary of Energy, I hereby confirm,
approve and place in effect on an
interim basis, effective January 1, 2017,
the Southwestern Integrated System
Rate Schedule NFTS–13A which shall
remain in effect on an interim basis
through September 30, 2017, or until the
FERC confirms and approves the rates
on a final basis.
The Southwestern NEPA Compliance
Officer determined that the currentlyapproved Integrated System rates fall
within the class of actions that are
categorically excluded from the
requirements of preparing either an
Environmental Impact Statement or an
Environmental Assessment. No
additional evaluation of the
environmental impact of the proposed
rate schedule changes was conducted
because no change in anticipated
revenues was contemplated.
Dated: December 23, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary.
ADMINISTRATIVE PROCEDURES
[FR Doc. 2016–31885 Filed 1–3–17; 8:45 am]
The Administrative Procedure Act (5
U.S.C. 553(d)) (APA) prescribes that the
required publication or service of a
substantive rule shall be made not less
than 30 days before its effective date,
except (1) a substantive rule that grants
or recognizes an exemption or relieves
a restriction; (2) interpretative rules and
statements of policy; or (3) as otherwise
provided by the agency for good cause
found and published with the rule. For
the reasons stated in the paragraph that
follows, the Department of Energy
(DOE) finds good cause to waive the 30day delay in effective date because a 30day delay would be unnecessary.
In this action, Southwestern updates
the method for charging non-Federal
transmission customers who choose to
contract for SPP NITS on
Southwestern’s transmission system
under the SPP OATT from a stated rate
to a revenue-requirement based charge,
to better align with standard practices
utilized by SPP. Because the NFTS–13A
rate schedule change will result in no
change in anticipated revenues, it is
considered a ‘‘minor rate adjustment’’
pursuant to 10 CFR part 903, subpart A,
and Southwestern has treated it as such
in the rate schedule actions to date. A
‘‘minor rate adjustment’’ is defined as a
rate adjustment that (1) will produce
less than 1 percent change in the annual
BILLING CODE 6450–01–P
PO 00000
Frm 00025
Fmt 4703
Sfmt 4703
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications will also be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
E:\FR\FM\04JAN1.SGM
04JAN1
]]>Agencies
[Federal Register Volume 82, Number 2 (Wednesday, January 4, 2017)]
[Notices]
[Pages 837-839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31885]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Rate Schedule
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Rate Order.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary has approved and placed into effect on an
interim basis Rate Order No. SWPA-71, which provides the following
Integrated System Non-Federal Transmission Service (NFTS) Rate
Schedule: Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal
Transmission Service.
FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice
President, Chief Operating Officer, Office of Corporate Operations,
Southwestern Power Administration, U.S. Department of Energy, One West
Third Street, Tulsa, Oklahoma 74103, (918) 595-6646,
marshall.boyken@swpa.gov, or facsimile transmission (918) 595-6646.
SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00-
037.00A, effective October 25, 2013, and 00-001.00F, effective November
17, 2014, Rate Order No. SWPA-71, is approved and placed into effect on
an interim basis for the period January 1, 2017, through September 30,
2017, pursuant to the following rate schedule: Rate Schedule NFTS-13A,
Wholesale Rates for Non-Federal Transmission Service, which supersedes
the existing Rate Schedule NFTS-13, Wholesale Rates for Non-Federal
Transmission Service.
Southwestern Power Administration's (Southwestern) Administrator
has determined that an additional section within Southwestern's
Integrated System NFTS Rate Schedule is necessary to better align
Southwestern's rate schedule with standard practices utilized by the
Southwest Power Pool, Inc. (SPP) Regional Transmission Organization.
The new section 2.3.6 establishes a procedure for determining an Annual
Revenue Requirement (ARR) for customers that choose to contract for
Network Integration Transmission Service (NITS) on Southwestern's
transmission system pursuant to the SPP Open Access Transmission Tariff
(OATT).
The NFTS-13 Rate Schedule included a stated rate for NITS that is
calculated by dividing Southwestern's monthly revenue requirement,
derived from Southwestern's NFTS ARR identified within the Southwestern
2013 Integrated System Power Repayment Studies (PRS), by the net
transmission capacity available for NITS. Modifying Southwestern's rate
schedule to include an ARR for SPP NITS, rather than applying a stated
rate better aligns with standard practices utilized by SPP. Therefore,
in place of applying the NITS stated rate for SPP NITS on
Southwestern's transmission system, the proposed Section 2.3.6 includes
a procedure for determining and updating an SPP NITS ARR, as a portion
of Southwestern's NFTS ARR, based on the amount of revenue assumed to
be recovered on an annual basis from NITS customers in each approved
PRS. If additional customers choose to contract for SPP NITS on
Southwestern's transmission system, the new Section 2.3.6 methodology
updates the SPP NITS ARR. The title of the NFTS-13 Rate Schedule was
changed to NFTS-13A to reflect the addition of Section 2.3.6.
The Southwestern 2013 PRS indicated that rates (total Southwestern
NFTS ARR) prescribed by NFTS-13, Wholesale Rates for Non-Federal
Transmission Service, as approved in Docket No. EF14-1-000, for the
period October 1, 2013, through September 30, 2017, are sufficient to
meet repayment criteria and will have no impact on the amortization or
status of repayment forecasted in the Southwestern 2013 PRS and will
not require rate changes. Revenues based on current rates remain
sufficient to meet repayment criteria.
The Southwestern Administrator has followed Title 10, Part 903,
Subpart A of the Code of Federal Regulations, ``Procedures for Public
Participation in Power and Transmission Rate Adjustments and
Extensions,'' in connection with the rate schedule revisions. The
public was advised by notice published in the Federal Register (81 FR
75814), November 1, 2016, of the proposed rate schedule change and of
the opportunity to provide written comments for a period of 30 days
ending December 1, 2016. One customer provided comments during the
period of public participation related to the proposed rate schedule
change, which consisted of some clarifying questions that Southwestern
answered and one comment on phrasing that Southwestern acknowledged.
Information regarding this rate proposal, including studies and
other supporting material, and comments received is available for
public review in the offices of Southwestern Power Administration,
Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103.
Following review of Southwestern's proposal within the Department of
Energy, I approve Rate Order No. SWPA-71.
[[Page 838]]
Dated: December 23, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary.
United States of America
Department of Energy
Deputy Secretary
In the matter of: Southwestern Power Administration Integrated
System Non-Federal Transmission Service Rate Schedule
Rate Order No. SWPA-71
ORDER CONFIRMING, APPROVING AND PLACING REVISED POWER RATE SCHEDULES IN
EFFECT ON AN INTERIM BASIS
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95[dash]91, the functions of the Secretary
of the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern
Power Administration (Southwestern) were transferred to and vested in
the Secretary of Energy. By Delegation Order No. 00-037.00A, the
Secretary of Energy delegated to the Administrator of Southwestern the
authority to develop power and transmission rates, delegated to the
Deputy Secretary of the Department of Energy the authority to confirm,
approve, and place in effect such rates on an interim basis and
delegated to the Federal Energy Regulatory Commission (FERC) the
authority to confirm and approve on a final basis or to disapprove
rates developed by the Administrator under the delegation. Pursuant to
that delegated authority, the Deputy Secretary has issued this interim
rate order.
BACKGROUND
In July 2013, Southwestern completed its review of the adequacy of
the current rate schedules for the Integrated System and finalized its
2013 Power Repayment Studies (2013 PRS). The studies indicated that the
proposed rates would meet cost recovery criteria for the Integrated
System, including the identified Non-Federal Transmission Service
(NFTS) Annual Revenue Requirement (ARR). The Federal Energy Regulatory
Commission (FERC) confirmation and approval of the following Integrated
System rate schedules was provided in a FERC order issued in Docket No.
EF14-1-000 on January 9, 2014,\1\ for the period October 1, 2013,
through September 30, 2017:
---------------------------------------------------------------------------
\1\ 146 FERC ]62,016
---------------------------------------------------------------------------
Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13, Wholesale Rates for Point-to-Point and Network
Transmission Service
Rate Schedule EE-13, Wholesale Rate for Excess Energy
Based on operations under the approved rate schedules, the
Administrator determined that an additional section outlining a new
methodology within Southwestern's Integrated System Non-Federal
Transmission Service (NFTS-13) Rate Schedule is necessary to better
align Southwestern's rate schedule with standard practices utilized by
the Southwest Power Pool, Inc. (SPP) Regional Transmission
Organization. A new section 2.3.6 is proposed that establishes a
procedure for determining an ARR for customers that choose to contract
for Network Integration Transmission Service (NITS) on Southwestern's
transmission system pursuant to the SPP Open Access Transmission Tariff
(OATT).
The new Section 2.3.6 does not change Southwestern's NFTS ARR, as
determined in its 2013 PRS, but rather replaces the current stated-rate
for SPP NITS with a revenue-requirement based methodology that includes
determining the SPP NITS ARR portion of Southwestern's NFTS ARR.
Furthermore, the new Section 2.3.6 affects only those customers that
choose to contract for SPP NITS on Southwestern's transmission system
under the SPP OATT.
The designation of the aforementioned rate schedule has been
revised from NFTS-13 to NFTS-13A to reflect that an addition has been
made.
Southwestern followed Title 10, Part 903 Subpart A, of the Code of
Federal Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions'' (Part 903) in connection
with the proposed Rate Schedule NFTS[dash]13A. An opportunity for
customers and other interested members of the public to review and
comment on the proposed rate schedule was announced by notice published
in the Federal Register November 1, 2016, (81 FR 75814), with written
comments due by December 1, 2016. One customer provided comments during
the period of public participation related to the proposed rate
schedule change, which consisted of some clarifying questions that
Southwestern answered and one comment on phrasing that Southwestern
acknowledged.
DISCUSSION
The NFTS-13 Rate Schedule includes a stated rate for NITS that is
calculated by dividing Southwestern's monthly revenue requirement,
derived from Southwestern's NFTS ARR identified within the 2013 PRS, by
the net transmission capacity available for NITS. Modifying
Southwestern's rate schedule to include an ARR for SPP NITS, rather
than applying a stated rate, better aligns with standard practices
utilized by SPP. Therefore, in place of applying the NITS stated rate
for SPP NITS on Southwestern's transmission system, the new Section
2.3.6 in NFTS-13A includes a procedure for determining and updating an
SPP NITS ARR, as a portion of Southwestern's NFTS ARR, based on the
amount of revenue assumed to be recovered on an annual basis from NITS
customers in each approved PRS. If additional customers choose to
contract for SPP NITS on Southwestern's transmission system, the
proposed Section 2.3.6 methodology updates the SPP NITS ARR.
COMMENTS AND RESPONSES
Southwestern received comments from one customer during the period
of public participation related to the proposed rate schedule change,
which consisted of some clarifying questions that Southwestern answered
and one comment on phrasing that Southwestern acknowledged.
Southwestern made no change to the proposed rate schedule as a result
of the questions and comment received. The questions and comment, with
Southwestern's responses in underlined text, are detailed below.
Questions:
1. Will NITS for delivery to loads within Southwestern's system
only be available under the terms of the SPP OATT? Yes, for new
transmission service. Additionally, as current Southwestern
transmission service agreements expire (for grandfathered service or
service under Southwestern's OATT), they will not be renewed; so if
continued service is desired, it would be under a new SPP OATT
agreement.
If not, under what conditions may a customer elect to take
Southwestern NITS? Per Southwestern's agreement with SPP, which is
filed as Attachment AD of the SPP OATT, new Southwestern OATT NITS
agreements will not be entered into.
2. Approximately how many MWs of Southwestern NITS Capacity are
currently reserved? 66 MW is currently reserved as NITS under both the
Southwestern and SPP OATTs.
3. Will current Southwestern NITS customers be allowed to renew
their Southwestern NITS Agreement(s), or will they transition to SPP
NITS? As current Southwestern transmission service agreements expire
(for
[[Page 839]]
grandfathered service or service under Southwestern's OATT), they will
not be renewed; so if continued service is desired, it would be under a
new SPP OATT agreement, per SPP OATT Attachment AD.
4. Do you expect Section 2.3.5. to apply to both SPP NITS and
Southwestern NITS? I believe the peak billing demand methodology is
different. Section 2.3.5 applies to Southwestern NITS only. The new
Section 2.3.6 applies to SPP NITS only.
5. My understanding is that SPP bills NITS load on a 12CP basis,
whereas, Southwestern bills NITS load on a 1CP basis (per 2.3.5). Is it
correct that NITS Transmission Customers on Southwestern's system will
pay less for SPP NITS service than for equivalent Southwestern NITS
service? Southwestern NITS customers are billed on a 1 CP basis and SPP
NITS customers are billed on 12 CP basis, both in accordance with their
respective OATT's.
As to whether or not SPP NITS will cost less than Southwestern
NITS, several factors will have to be assessed to make that
determination, including the entities' proportion of load at the time
of the monthly CP and the amount of transmission service reserved that
was transitioned to SPP NITS (per the proposed Section 2.3.6).
Additionally, entities choosing to utilize SPP NITS will be subject to
various SPP charges (i.e. Schedule 11) that may add cost to the SPP
NITS. The analysis of these costs can only be determined by the
particular customer and their unique set of circumstances. Therefore, a
statement that conveys certainty of a lower cost for SPP NITS cannot be
made.
Comment:
1. There are several general references in the proposed NFTS-13A to
Network Integration Transmission Service. In a few instances, the
document refers to SPP NITS or Southwestern NITS. I think it would be
good to clarify in each instance if we are referring to SPP NITS,
Southwestern NITS, or both. Comment acknowledged. We will review the
language and ensure the final rate schedule has clarity between SPP
NITS and Southwestern NITS.
AVAILABILITY OF INFORMATION
Information regarding this rate schedule change is available for
public review in the offices of Southwestern Power Administration,
Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103.
ADMINISTRATOR'S CERTIFICATION
The revised rate schedule will repay all costs of the Integrated
System including amortization of the power investment consistent with
the provisions of Department of Energy Order No. RA 6120.2. In
accordance with Delegation Order Nos. 00-037.00A, effective October 25,
2013, and 00-001.00F, effective November 17, 2014, and Section 5 of the
Flood Control Act of 1944, the Administrator has determined that the
proposed Integrated System rate schedule is consistent with applicable
law and the lowest possible rates consistent with sound business
principles.
ENVIRONMENT
The Southwestern NEPA Compliance Officer determined that the
currently-approved Integrated System rates fall within the class of
actions that are categorically excluded from the requirements of
preparing either an Environmental Impact Statement or an Environmental
Assessment. No additional evaluation of the environmental impact of the
proposed rate schedule changes was conducted because no change in
anticipated revenues was contemplated.
ADMINISTRATIVE PROCEDURES
The Administrative Procedure Act (5 U.S.C. 553(d)) (APA) prescribes
that the required publication or service of a substantive rule shall be
made not less than 30 days before its effective date, except (1) a
substantive rule that grants or recognizes an exemption or relieves a
restriction; (2) interpretative rules and statements of policy; or (3)
as otherwise provided by the agency for good cause found and published
with the rule. For the reasons stated in the paragraph that follows,
the Department of Energy (DOE) finds good cause to waive the 30-day
delay in effective date because a 30-day delay would be unnecessary.
In this action, Southwestern updates the method for charging non-
Federal transmission customers who choose to contract for SPP NITS on
Southwestern's transmission system under the SPP OATT from a stated
rate to a revenue-requirement based charge, to better align with
standard practices utilized by SPP. Because the NFTS-13A rate schedule
change will result in no change in anticipated revenues, it is
considered a ``minor rate adjustment'' pursuant to 10 CFR part 903,
subpart A, and Southwestern has treated it as such in the rate schedule
actions to date. A ``minor rate adjustment'' is defined as a rate
adjustment that (1) will produce less than 1 percent change in the
annual revenues of the power system; or (2) is for a power system that
has either annual sales normally less than 100 million kilowatt hours
or an installed capacity of less than 20,000 kilowatts. When consistent
with the APA, DOE regulations also provide that the effective date of
rate schedules put into effect on an interim basis by the Deputy
Secretary may be sooner than 30 days after the Deputy Secretary's
decision when making a minor rate adjustment.
Additionally, DOE emphasizes that there were no substantive issues
or concerns raised during the public comment period for the NFTS-13A
rate schedule action.
ORDER
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm, approve and place in
effect on an interim basis, effective January 1, 2017, the Southwestern
Integrated System Rate Schedule NFTS-13A which shall remain in effect
on an interim basis through September 30, 2017, or until the FERC
confirms and approves the rates on a final basis.
Dated: December 23, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary.
[FR Doc. 2016-31885 Filed 1-3-17; 8:45 am]
BILLING CODE 6450-01-P
