Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-180, 30858-30861 [2017-13981]
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30858
Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices
TABLE 3—SUMMARY OF LAP CHARGE COMPONENTS
Existing charges under rate schedule L–F10 with
adjusted drought adder as of January 1, 2017
Base
component
Firm Capacity (/kWmonth)
Firm Energy (mills/kWh) ....
Drought adder
component
$3.92
14.95
sradovich on DSK3GMQ082PROD with NOTICES
Sale of Surplus Products
On August 12, 2016, the Deputy
Secretary of Energy approved, on an
interim basis, Rate Schedule L–M1
under Rate Order No. WAPA–174, for
the period beginning October 1, 2016,
and ending September 30, 2021 (81 FR
56632–56652 (August 22, 2016)).3 This
Rate Schedule is formula-based,
providing for LAP Marketing to sell LAP
surplus energy and capacity products. If
LAP surplus products are available, as
specified in the rate schedule, the
charge will be based on market rates
plus administrative costs. The customer
will be responsible for acquiring
transmission service necessary to
deliver the product(s) for which a
separate charge may be incurred. The
rate schedule currently allows for the
sale of reserves, regulation, and
frequency response. WAPA is proposing
to add ‘‘energy’’ as a fourth surplus
product offered under this rate
schedule. WAPA is proposing to place
Rate Schedule L–M2 into effect for the
5-year period beginning January 1, 2018,
through December 31, 2022.
Legal Authority
The proposed rates constitute a major
rate adjustment, as defined by 10 CFR
903.2(e); therefore, WAPA will hold
public information and public comment
forums for this rate adjustment,
pursuant to 10 CFR 903.15 and 903.16.
WAPA will review all timely public
comments and make amendments or
adjustments to the proposals as
appropriate. Proposed rates will be
forwarded to the Deputy Secretary of
Energy for approval on an interim basis.
WAPA is establishing firm electric
service rates and sale of surplus
products formula rates under the
Department of Energy (DOE)
Organization Act (42 U.S.C. 7152); the
Reclamation Act of 1902 (ch. 1093, 32
Stat. 388), as amended and
supplemented by subsequent
enactments, particularly section 9(c) of
3 FERC confirmed and approved Rate Order
WAPA–174 on a final basis on March 9, 2017, in
Docket Nos. EF16–5–000 and EF16–5–001. See
United States Department of Energy, Western Area
Power Administration (Loveland Area Projects), 158
FERC ¶ 62,181.
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Total charge
$0.87
3.33
$4.79
18.28
Proposed charges under rate schedule L–F11 as
of January 1, 2018
Base
component
$4.12
15.72
the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)) and section 5 of the
Flood Control Act of 1944 (16 U.S.C.
825s); and other acts specifically
applicable to the projects involved.
By Delegation Order No. 00–037.00B,
effective November 19, 2016, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to WAPA’s
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand,
or to disapprove such rates to FERC.
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985 (50 FR 37835).
All brochures, studies, comments,
letters, memorandums, or other
documents WAPA initiates or uses to
develop the proposed rates will be
available for inspection and copying at
the Rocky Mountain Regional Office
located at 5555 East Crossroads
Boulevard, Loveland, Colorado. These
documents and supporting information
will be posted on WAPA’s Web site as
they become available under the ‘‘2018
Rate Adjustment—Firm Power’’ section
located at: https://www.wapa.gov/
regions/RM/rates/Pages/2018-RateAdjustment---Firm-Power.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
is in the process of determining whether
an environmental assessment or an
environmental impact statement should
be prepared or if this action can be
categorically excluded from those
requirements.
Frm 00043
Fmt 4703
Sfmt 4703
Percent
change
Total charge
$0
0
$4.12
15.72
¥14
¥14
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.
Dated: June 27, 2017.
Mark A. Gabriel,
Administrator.
[FR Doc. 2017–13980 Filed 6–30–17; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program—
Eastern Division-Rate Order No.
WAPA–180
Western Area Power
Administration, DOE.
ACTION: Notice of Proposed Firm Power
Service and Sale of Surplus Products
Rates.
AGENCY:
Availability of Information
PO 00000
Drought adder
component
Western Area Power
Administration (WAPA) is proposing
revised rates for Pick-Sloan Missouri
Basin Program—Eastern Division (P–
SMBP—ED) firm power and firm
peaking power service, and a new
formula rate for sales of surplus
products. Current firm power and firm
peaking power service rates, under Rate
Schedules P–SED–F12 and P–SED–
FP12, are in effect through December 31,
2019.
WAPA is proposing to lower the
overall charges for firm power and firm
peaking power service by 19 percent, as
a result of rebalancing the charge
components in formula-based Rate
Schedules P–SED–F12 and P–SED–FP12
by reducing the drought adder
component, increasing the base
component, and removing the voltage
discount. The proposed rates will
provide sufficient revenue to pay all
annual costs, including interest
expense, and repay investments within
the allowable periods. In addition,
WAPA is proposing a new formula rate
for the sale of surplus products under
Rate Schedule P–SED–M1. This new
SUMMARY:
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Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices
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rate schedule will allow for the sale of
generation and generation-related
products in excess of WAPA’s P–
SMBP—ED firm power obligations at
market rates. WAPA will prepare a
brochure providing detailed information
on these proposed rates prior to the
public information forums listed below.
This brochure will be posted to WAPA’s
Web site at https://www.wapa.gov/
regions/UGP/rates/Pages/2018-firmrate-adjustment.aspx. If approved, the
proposed rates, under Rate Schedules
P–SED–F13, P–SED–FP13, and P–SED–
M1 would become effective on January
1, 2018, and would remain in effect
through December 31, 2022, or until
superseded. Publication of this Federal
Register notice begins the formal
process for the proposed rate adjustment
and new sale of surplus products
formula rate.
DATES: The consultation and comment
period will begin July 3, 2017 and end
October 2, 2017. WAPA will present a
detailed explanation of the proposed
rates and other modifications at public
information forums being held on the
following dates and times:
1. August 22, 2017, 9:00 a.m. to 10:30
a.m. MDT, Denver, Colorado.
2. August 23, 2017, 9:00 a.m. to 10:30
a.m. CDT, Sioux Falls, South Dakota.
WAPA will accept oral and written
comments at public comment forums on
the following dates and times:
1. August 22, 2017, 11:00 a.m. to no
later than 12 noon MDT, Denver,
Colorado.
2. August 23, 2017, 11:00 a.m. to no
later than 12 noon CDT, Sioux Falls,
South Dakota.
WAPA will accept written comments
anytime during the consultation and
comment period.
ADDRESSES: Written comments and/or
requests to be informed of Federal
Energy Regulatory Commission (FERC)
actions concerning the proposed rates
submitted by WAPA to FERC for
approval should be sent to: Mr. Robert
J. Harris, Regional Manager, Upper Great
Plains Region, Western Area Power
Administration, 2900 4th Avenue North,
6th Floor, Billings, MT 59101–1266, or
email ugpfirmrate@wapa.gov.
1 FERC confirmed and approved Rate Order
WAPA–166 on a final basis on March 18, 2015, in
Docket No. EF15–3–000. See United States
Department of Energy, Western Area Power
Administration (Pick-Sloan Missouri Basin
Program—Eastern Division), 150 FERC ¶ 62,170.
2 The drought adder component is a formulabased revenue requirement that includes future
purchase power above timing purchases, previous
purchase power drought deficits, and interest on
the purchase power drought deficits. See 72 FR
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On December 2, 2014, the Deputy
Secretary of Energy approved, on an
interim basis, Rate Order No. WAPA–
166 and Rate Schedules P–SED–F12 and
P–SED–FP12 for the period beginning
January 1, 2015, and ending December
31, 2019 (79 FR 72670–72677 (Dec. 8,
2014)).1 These Rate Schedules are
formula-based, providing for downward
adjustments to the drought adder
component.2 On January 1, 2017, the
drought adder component of the P–
SMBP—ED effective Rate Schedules was
adjusted downward, recognizing
repayment of drought costs included in
the drought adder component of the
approved formula rates. The formulabased drought adder component needs
to be adjusted down to zero in 2018 and
such adjustment can be made using the
approved annual drought adder
adjustment process. However, since any
adjustment to the base component must
be done through a public rate process,
WAPA now proposes to adjust both the
base and drought adder components
through a rate adjustment process.
WAPA proposes to adjust the formulabased drought adder component of firm
power rate schedules down to zero in
2018, while the base component will be
adjusted upward to address present
costs. The P–SMBP Fiscal Year 2016
Power Repayment Study (PRS) revenue
requirement and current water
conditions in the P–SMBP are the
determining factors for this proposed
rate adjustment.
WAPA’s Upper Great Plains Region
(UGP) is also proposing the removal of
the 5 percent voltage discount currently
in the existing P–SMBP—ED firm power
rate schedule P–SED–F12 and removing
it from the firm power revenue
requirement determined in the FY 2016
PRS. The voltage discount was
originally created by the Bureau of
Reclamation (BOR) in its firm power
rate schedules prior to the creation of
WAPA. This discount was to
compensate certain preference
customers for providing ‘‘transmission’’
facilities otherwise provided by the BOR
and later WAPA. The effect of providing
this discount to certain customers is to
raise the firm power rates to all
customers to recover the dollars lost by
providing the discount. By removing the
voltage discount, the overall P–SMBP—
ED firm power rate will be lower and all
firm power customers will pay firm
power rates on an equivalent basis. The
original intent of the voltage discount
has been met in its nearly 70 years of
application. The voltage discount has
been difficult to administer equitably
among customers. It takes considerable
staff time to administer, impedes
simplifying power and energy billing,
and adds complexity to solely Upper
Great Plains (UGP) power billing.
Removing the voltage discount is
revenue neutral for WAPA.
With the removal of the voltage
discount taken into account, the
proposed total annual revenue
requirement for P–SMBP—ED is $230.1
million for firm power and firm peaking
power service. The existing P–SMBP—
ED charges in the current rate schedules
for firm power and firm peaking power
are being reduced, as indicated in Table
1:
64067 (November 14, 2007). The drought adder was
added as a component to the energy and capacity
rates in Rate Order No. WAPA–135, which was
approved by the Deputy Secretary on an interim
basis on November 14, 2007 (72 FR 64067). FERC
confirmed and approved Rate Order WAPA–135 on
a final basis on April 14, 2008, in Docket No. EF08–
5031. See United States Department of Energy,
Western Area Power Administration (Pick-Sloan
Missouri Basin Program-Eastern Division), 123
FERC ¶ 62,048. Western reviews the drought adder
each September to determine if drought costs differ
from those projected in the Power Repayment Study
and whether an adjustment to the drought adder is
necessary. See 72 FR at 64071. The drought adder
may be adjusted downward using the approved
annual drought adder adjustment process, whereas
an incremental upward adjustment to the drought
adder component greater than the equivalent of 2
mills/kWh requires a public rate process. See 72 FR
at 64071.
Information about this rate process is
posted on WAPA’s Web site at https://
www.wapa.gov/regions/UGP/rates/
Pages/2018-firm-rate-adjustment.aspx.
WAPA will post official comments
received via letter and email to its Web
site after the close of the comment
period. WAPA must receive written
comments by the end of the
consultation and comment period to
ensure they are considered in WAPA’s
decision process.
Public information and comment
forum locations are:
1. Denver—Embassy Suites, 7001
Yampa Street, Denver, Colorado.
2. Sioux Falls—Holiday Inn, 100 West
8th Street, Sioux Falls, South Dakota.
FOR FURTHER INFORMATION CONTACT: Mrs.
Linda Cady-Hoffman, Rates Manager,
Upper Great Plains Region, Western
Area Power Administration, 2900 4th
Avenue North, 6th Floor, Billings, MT
59101–1266, telephone: (406) 255–2920,
email: cady@wapa.govorUGPFirmRate@
wapa.gov.
SUPPLEMENTARY INFORMATION:
Firm Electric Service
PO 00000
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Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices
TABLE 1—SUMMARY OF CURRENT AND PROPOSED REVENUE REQUIREMENT AND RATES
Current under
P–SED–F12/
P–SED–FP12
with modified
drought adder
reduction as of
January 1, 2017
Firm power service
P–SMBP—ED Revenue Requirement (millions $) ..........................................................
P–SMBP—ED Composite Rate (mills/kWh) ....................................................................
Firm Capacity ($/kW-month) ............................................................................................
Firm Energy (mills/kWh) ..................................................................................................
Firm Peaking Capacity ($/kW-month) .............................................................................
Firm Peaking Energy (mills/kWh) 1 ..................................................................................
1 Firm
Proposed under
P–SED–F13/
P–SED–FP13
as of
January 1, 2018
$282.7
28.25
$6.50
16.18
$5.85
16.18
$230.1
24.00
$5.25
13.27
$4.75
13.27
Percent
change
¥19
¥15
¥19
¥18
¥19
¥18
Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not returned.
Under the current rate methodology,
rates for P–SMBP—ED firm power and
firm peaking power service are designed
to recover an annual revenue
requirement that includes investment
repayment, interest, purchase power,
operation and maintenance, and other
expenses within the allowable period.
The annual revenue requirement
continues to be allocated equally
between capacity and energy.
WAPA is proposing to place Rate
Schedules P–SED–F13 and P–SED–FP13
into effect for the 5-year period
beginning January 1, 2018, through
December 31, 2022. The proposed
adjustment updates the base component
with present costs and reduces the
drought adder component to zero, as the
drought-related debts are projected to be
fully repaid in 2018. The net effect of
these adjustments results in an overall
decrease to the P–SMBP—ED rates.
Base component costs for the P–
SMBP—ED have increased primarily
due to inflationary annual and capital
cost increases associated with
incorporating three new out-year
projections into the 5-year cost
evaluation period of the current ratesetting PRS. Concurrently, WAPA will
be reducing the P SMBP—ED drought
adder components of the firm power
rates to zero recognizing the full
repayment of drought costs in 2018. The
anticipated net effect of these planned
rate actions is the firm power rate
charges for the P–SMBP—ED will be
decreasing overall from the current rate
charges. A comparison of the current
and proposed components is listed in
Table 2.
TABLE 2—SUMMARY OF P–SMBP—ED CHARGE COMPONENTS
Current charges under rate schedules
P–SED–F12 and P–SED–FP12
with modified drought adder reduction
as of January 1, 2017
Base
component
Firm
Firm
Firm
Firm
Capacity ($/kWmonth) .............
Energy (mills/kWh) ..................
Peaking Capacity ($/kWmonth)
Peaking Energy (mills/kWh) 1 ..
sradovich on DSK3GMQ082PROD with NOTICES
1 Firm
Drought adder
component
Total charge
$1.60
3.85
$1.40
3.85
$6.50
16.18
$5.85
16.18
$4.90
12.33
$4.45
12.33
Proposed charges under rate schedules
P–SED–F13 and P–SED–FP13
as of January 1, 2018
Base
component
Drought adder
component
Total charge
$0.00
0.00
$0.00
0.00
$5.25
13.27
$4.75
13.27
Change
(percent)
$5.25
13.27
$4.75
13.27
¥19
¥18
¥19
¥18
peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.
As a part of the current and proposed
rate schedules, WAPA provides for a
formula-based adjustment of the
drought adder component of up to 2
mills/kWh. The 2 mills/kWh cap is
intended to place a limit on the amount
the drought adder component can be
adjusted relative to associated drought
costs to recover costs attributable to the
drought adder formula rate for any oneyear cycle. Continuing to identify the
firm power service revenue requirement
using base and drought adder
components will assist WAPA in the
presentation of future impacts of
droughts, demonstrate repayment of
drought-related costs in the PRS, and
allow WAPA to be more responsive to
changes caused by drought-related
expenses. WAPA will continue to
charge and bill its customers firm power
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and firm peaking power service rates for
energy and capacity, which are the sum
of the base and drought adder
components.
is proposing to place Rate Schedule P–
SED–M1 into effect for the 5-year period
beginning January 1, 2018, through
December 31, 2022.
Sale of Surplus Products
In addition to the firm power and firm
peaking power rate schedules, WAPA is
proposing a new formula-based rate
schedule, P–SED–M1, applicable to the
sale of surplus energy and capacity
products. The schedule includes
reserves, regulation, frequency response,
and energy. If WAPA UGP surplus
products are available, the charge will
be determined based on market rates,
plus administrative costs. The customer
will be responsible for acquiring
transmission service necessary to
deliver the product(s) for which a
separate charge may be incurred. WAPA
Legal Authority
PO 00000
Frm 00045
Fmt 4703
Sfmt 4703
The proposed rates constitute a major
rate adjustment, as defined by 10 CFR
903.2(e); therefore, WAPA will hold the
public information and public comment
forums for this rate adjustment,
pursuant to 10 CFR 903.15 and 903.16.
WAPA will review all timely public
comments and make amendments or
adjustments to the proposals as
appropriate. Proposed rates will be
forwarded to the Deputy Secretary of
Energy for approval on an interim basis.
WAPA is establishing firm power
service rates, firm peaking power
service rates, and sale of surplus
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Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices
product formula rates for P–SMBP–ED
under the Department of Energy (DOE)
Organization Act (42 U.S.C. 7152); 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 section 5 of the
Flood Control Act of 1944 (16 U.S.C.
825s); and other acts specifically
applicable to the projects involved.
By Delegation Order No. 00–037.00B,
effective November 19, 2016, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to WAPA’s
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, to remand or
to disapprove such rates to FERC.
Existing DOE procedures for public
participation in power rate adjustments
(10 CFR part 903) were published on
September 18, 1985 (50 FR 37835).
Availability of Information
All brochures, studies, comments,
letters, memorandums, or other
documents WAPA initiates or uses to
develop the proposed rates will be
available for inspection and copying at
the Upper Great Plains Regional Office,
located at 2900 4th Avenue North, 6th
Floor, Billings, Montana. These
documents and supporting information
will be posted on WAPA’s Web site as
they become available under the ‘‘2018
Firm Rate Adjustment’’ section located
at https://www.wapa.gov/regions/UGP/
rates/Pages/2018-firm-rateadjustment.aspx.
Ratemaking Procedure Requirements
sradovich on DSK3GMQ082PROD with NOTICES
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
is in the process of determining whether
an environmental assessment or an
environmental impact statement should
be prepared or if this action can be
categorically excluded from those
requirements.
Determination Under Executive Order
12866
WAPA has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
VerDate Sep<11>2014
17:53 Jun 30, 2017
Jkt 241001
clearance of this notice by the Office of
Management and Budget is required.
Dated: June 27, 2017.
Mark A. Gabriel,
Administrator.
[FR Doc. 2017–13981 Filed 6–30–17; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OW–2005–0023; FRL–9961–97–
OW]
Proposed Information Collection
Request; Comment Request; Clean
Water Act Section 404 State-Assumed
Programs; EPA ICR No. 0220.13, OMB
Control No. 2040–0168
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
The Environmental Protection
Agency (EPA) is planning to submit an
information collection request (ICR),
‘‘Clean Water Act Section 404 StateAssumed Programs’’ (EPA ICR No.
0220.13, OMB Control No. 2040–0168)
to the Office of Management and Budget
(OMB) for review and approval in
accordance with the Paperwork
Reduction Act. Before doing so, EPA is
soliciting public comments on specific
aspects of the proposed information
collection as described below. This is a
proposed extension of the ICR No.
0220.12, which is currently approved
through November 30, 2017. 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 August 2, 2017.
ADDRESSES: Submit your comments,
referencing Docket ID No. EPA–HQ–
OW–2005–0023, online using
www.regulations.gov (our preferred
method), by email to ow-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
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:
Kathy Hurld, Wetlands Division, Office
SUMMARY:
PO 00000
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30861
of Wetlands, Oceans, and Watersheds
(4502T), Environmental Protection
Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460; telephone: 202–
566–1269; fax number: 202–566–1349;
email address: hurld.kathy@epa.gov.
SUPPLEMENTARY INFORMATION:
Supporting documents which explain in
detail the information that 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 https://www.epa.gov/
dockets.
Pursuant to section 3506(c)(2)(A) of
the PRA, 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. 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, 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: Section 404(g) of the Clean
Water Act authorizes states [and tribes]
to assume the section 404 permit
program for discharges of dredged or fill
material into certain Waters of the U.S.
This ICR covers the collection of
information EPA needs to perform its
program approval and oversight
responsibilities and the state/tribe needs
to implement its program.
Request to assume CWA section 404
permit program. States/tribes must
demonstrate that they meet the statutory
and regulatory requirements (40 CFR
233) for an approvable program.
Specified information and documents
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]]>Agencies
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)]
[Notices]
[Pages 30858-30861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13981]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program--Eastern Division-Rate Order
No. WAPA-180
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Firm Power Service and Sale of Surplus
Products Rates.
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SUMMARY: Western Area Power Administration (WAPA) is proposing revised
rates for Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--
ED) firm power and firm peaking power service, and a new formula rate
for sales of surplus products. Current firm power and firm peaking
power service rates, under Rate Schedules P-SED-F12 and P-SED-FP12, are
in effect through December 31, 2019.
WAPA is proposing to lower the overall charges for firm power and
firm peaking power service by 19 percent, as a result of rebalancing
the charge components in formula-based Rate Schedules P-SED-F12 and P-
SED-FP12 by reducing the drought adder component, increasing the base
component, and removing the voltage discount. The proposed rates will
provide sufficient revenue to pay all annual costs, including interest
expense, and repay investments within the allowable periods. In
addition, WAPA is proposing a new formula rate for the sale of surplus
products under Rate Schedule P-SED-M1. This new
[[Page 30859]]
rate schedule will allow for the sale of generation and generation-
related products in excess of WAPA's P-SMBP--ED firm power obligations
at market rates. WAPA will prepare a brochure providing detailed
information on these proposed rates prior to the public information
forums listed below. This brochure will be posted to WAPA's Web site at
https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.aspx. If approved, the proposed rates, under Rate Schedules
P-SED-F13, P-SED-FP13, and P-SED-M1 would become effective on January
1, 2018, and would remain in effect through December 31, 2022, or until
superseded. Publication of this Federal Register notice begins the
formal process for the proposed rate adjustment and new sale of surplus
products formula rate.
DATES: The consultation and comment period will begin July 3, 2017 and
end October 2, 2017. WAPA will present a detailed explanation of the
proposed rates and other modifications at public information forums
being held on the following dates and times:
1. August 22, 2017, 9:00 a.m. to 10:30 a.m. MDT, Denver, Colorado.
2. August 23, 2017, 9:00 a.m. to 10:30 a.m. CDT, Sioux Falls, South
Dakota.
WAPA will accept oral and written comments at public comment forums
on the following dates and times:
1. August 22, 2017, 11:00 a.m. to no later than 12 noon MDT,
Denver, Colorado.
2. August 23, 2017, 11:00 a.m. to no later than 12 noon CDT, Sioux
Falls, South Dakota.
WAPA will accept written comments anytime during the consultation
and comment period.
ADDRESSES: Written comments and/or requests to be informed of Federal
Energy Regulatory Commission (FERC) actions concerning the proposed
rates submitted by WAPA to FERC for approval should be sent to: Mr.
Robert J. Harris, Regional Manager, Upper Great Plains Region, Western
Area Power Administration, 2900 4th Avenue North, 6th Floor, Billings,
MT 59101-1266, or email ugpfirmrate@wapa.gov. Information about this
rate process is posted on WAPA's Web site at https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.aspx. WAPA will post
official comments received via letter and email to its Web site after
the close of the comment period. WAPA must receive written comments by
the end of the consultation and comment period to ensure they are
considered in WAPA's decision process.
Public information and comment forum locations are:
1. Denver--Embassy Suites, 7001 Yampa Street, Denver, Colorado.
2. Sioux Falls--Holiday Inn, 100 West 8th Street, Sioux Falls,
South Dakota.
FOR FURTHER INFORMATION CONTACT: Mrs. Linda Cady-Hoffman, Rates
Manager, Upper Great Plains Region, Western Area Power Administration,
2900 4th Avenue North, 6th Floor, Billings, MT 59101-1266, telephone:
(406) 255-2920, email: cady@wapa.govorUGPFirmRate@wapa.gov.
SUPPLEMENTARY INFORMATION:
Firm Electric Service
On December 2, 2014, the Deputy Secretary of Energy approved, on an
interim basis, Rate Order No. WAPA-166 and Rate Schedules P-SED-F12 and
P-SED-FP12 for the period beginning January 1, 2015, and ending
December 31, 2019 (79 FR 72670-72677 (Dec. 8, 2014)).\1\ These Rate
Schedules are formula-based, providing for downward adjustments to the
drought adder component.\2\ On January 1, 2017, the drought adder
component of the P-SMBP--ED effective Rate Schedules was adjusted
downward, recognizing repayment of drought costs included in the
drought adder component of the approved formula rates. The formula-
based drought adder component needs to be adjusted down to zero in 2018
and such adjustment can be made using the approved annual drought adder
adjustment process. However, since any adjustment to the base component
must be done through a public rate process, WAPA now proposes to adjust
both the base and drought adder components through a rate adjustment
process. WAPA proposes to adjust the formula-based drought adder
component of firm power rate schedules down to zero in 2018, while the
base component will be adjusted upward to address present costs. The P-
SMBP Fiscal Year 2016 Power Repayment Study (PRS) revenue requirement
and current water conditions in the P-SMBP are the determining factors
for this proposed rate adjustment.
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\1\ FERC confirmed and approved Rate Order WAPA-166 on a final
basis on March 18, 2015, in Docket No. EF15-3-000. See United States
Department of Energy, Western Area Power Administration (Pick-Sloan
Missouri Basin Program--Eastern Division), 150 FERC ] 62,170.
\2\ The drought adder component is a formula-based revenue
requirement that includes future purchase power above timing
purchases, previous purchase power drought deficits, and interest on
the purchase power drought deficits. See 72 FR 64067 (November 14,
2007). The drought adder was added as a component to the energy and
capacity rates in Rate Order No. WAPA-135, which was approved by the
Deputy Secretary on an interim basis on November 14, 2007 (72 FR
64067). FERC confirmed and approved Rate Order WAPA-135 on a final
basis on April 14, 2008, in Docket No. EF08-5031. See United States
Department of Energy, Western Area Power Administration (Pick-Sloan
Missouri Basin Program-Eastern Division), 123 FERC ] 62,048. Western
reviews the drought adder each September to determine if drought
costs differ from those projected in the Power Repayment Study and
whether an adjustment to the drought adder is necessary. See 72 FR
at 64071. The drought adder may be adjusted downward using the
approved annual drought adder adjustment process, whereas an
incremental upward adjustment to the drought adder component greater
than the equivalent of 2 mills/kWh requires a public rate process.
See 72 FR at 64071.
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WAPA's Upper Great Plains Region (UGP) is also proposing the
removal of the 5 percent voltage discount currently in the existing P-
SMBP--ED firm power rate schedule P-SED-F12 and removing it from the
firm power revenue requirement determined in the FY 2016 PRS. The
voltage discount was originally created by the Bureau of Reclamation
(BOR) in its firm power rate schedules prior to the creation of WAPA.
This discount was to compensate certain preference customers for
providing ``transmission'' facilities otherwise provided by the BOR and
later WAPA. The effect of providing this discount to certain customers
is to raise the firm power rates to all customers to recover the
dollars lost by providing the discount. By removing the voltage
discount, the overall P-SMBP--ED firm power rate will be lower and all
firm power customers will pay firm power rates on an equivalent basis.
The original intent of the voltage discount has been met in its nearly
70 years of application. The voltage discount has been difficult to
administer equitably among customers. It takes considerable staff time
to administer, impedes simplifying power and energy billing, and adds
complexity to solely Upper Great Plains (UGP) power billing. Removing
the voltage discount is revenue neutral for WAPA.
With the removal of the voltage discount taken into account, the
proposed total annual revenue requirement for P-SMBP--ED is $230.1
million for firm power and firm peaking power service. The existing P-
SMBP--ED charges in the current rate schedules for firm power and firm
peaking power are being reduced, as indicated in Table 1:
[[Page 30860]]
Table 1--Summary of Current and Proposed Revenue Requirement and Rates
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Current under P-
SED-F12/ P-SED- Proposed under P-
FP12 with SED-F13/ P-SED-
Firm power service modified drought FP13 as of Percent change
adder reduction January 1, 2018
as of January 1,
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P-SMBP--ED Revenue Requirement (millions $)............... $282.7 $230.1 -19
P-SMBP--ED Composite Rate (mills/kWh)..................... 28.25 24.00 -15
Firm Capacity ($/kW-month)................................ $6.50 $5.25 -19
Firm Energy (mills/kWh)................................... 16.18 13.27 -18
Firm Peaking Capacity ($/kW-month)........................ $5.85 $4.75 -19
Firm Peaking Energy (mills/kWh) 1......................... 16.18 13.27 -18
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1 Firm Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not
returned.
Under the current rate methodology, rates for P-SMBP--ED firm power
and firm peaking power service are designed to recover an annual
revenue requirement that includes investment repayment, interest,
purchase power, operation and maintenance, and other expenses within
the allowable period. The annual revenue requirement continues to be
allocated equally between capacity and energy.
WAPA is proposing to place Rate Schedules P-SED-F13 and P-SED-FP13
into effect for the 5-year period beginning January 1, 2018, through
December 31, 2022. The proposed adjustment updates the base component
with present costs and reduces the drought adder component to zero, as
the drought-related debts are projected to be fully repaid in 2018. The
net effect of these adjustments results in an overall decrease to the
P-SMBP--ED rates.
Base component costs for the P-SMBP--ED have increased primarily
due to inflationary annual and capital cost increases associated with
incorporating three new out-year projections into the 5-year cost
evaluation period of the current rate-setting PRS. Concurrently, WAPA
will be reducing the P SMBP--ED drought adder components of the firm
power rates to zero recognizing the full repayment of drought costs in
2018. The anticipated net effect of these planned rate actions is the
firm power rate charges for the P-SMBP--ED will be decreasing overall
from the current rate charges. A comparison of the current and proposed
components is listed in Table 2.
Table 2--Summary of P-SMBP--ED Charge Components
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Current charges under rate schedules P- Proposed charges under rate schedules P-
SED-F12 and P-SED-FP12 with modified SED-F13 and P-SED-FP13 as of January 1,
drought adder reduction as of January 1, 2018
2017 ------------------------------------------ Change
------------------------------------------ (percent)
Base Drought adder Total Base Drought adder Total
component component charge component component charge
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Firm Capacity ($/kWmonth).............................. $4.90 $1.60 $6.50 $5.25 $0.00 $5.25 -19
Firm Energy (mills/kWh)................................ 12.33 3.85 16.18 13.27 0.00 13.27 -18
Firm Peaking Capacity ($/kWmonth)...................... $4.45 $1.40 $5.85 $4.75 $0.00 $4.75 -19
Firm Peaking Energy (mills/kWh) 1...................... 12.33 3.85 16.18 13.27 0.00 13.27 -18
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1 Firm peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.
As a part of the current and proposed rate schedules, WAPA provides
for a formula-based adjustment of the drought adder component of up to
2 mills/kWh. The 2 mills/kWh cap is intended to place a limit on the
amount the drought adder component can be adjusted relative to
associated drought costs to recover costs attributable to the drought
adder formula rate for any one-year cycle. Continuing to identify the
firm power service revenue requirement using base and drought adder
components will assist WAPA in the presentation of future impacts of
droughts, demonstrate repayment of drought-related costs in the PRS,
and allow WAPA to be more responsive to changes caused by drought-
related expenses. WAPA will continue to charge and bill its customers
firm power and firm peaking power service rates for energy and
capacity, which are the sum of the base and drought adder components.
Sale of Surplus Products
In addition to the firm power and firm peaking power rate
schedules, WAPA is proposing a new formula-based rate schedule, P-SED-
M1, applicable to the sale of surplus energy and capacity products. The
schedule includes reserves, regulation, frequency response, and energy.
If WAPA UGP surplus products are available, the charge will be
determined based on market rates, plus administrative costs. The
customer will be responsible for acquiring transmission service
necessary to deliver the product(s) for which a separate charge may be
incurred. WAPA is proposing to place Rate Schedule P-SED-M1 into effect
for the 5-year period beginning January 1, 2018, through December 31,
2022.
Legal Authority
The proposed rates constitute a major rate adjustment, as defined
by 10 CFR 903.2(e); therefore, WAPA will hold the public information
and public comment forums for this rate adjustment, pursuant to 10 CFR
903.15 and 903.16. WAPA will review all timely public comments and make
amendments or adjustments to the proposals as appropriate. Proposed
rates will be forwarded to the Deputy Secretary of Energy for approval
on an interim basis.
WAPA is establishing firm power service rates, firm peaking power
service rates, and sale of surplus
[[Page 30861]]
product formula rates for P-SMBP-ED under the Department of Energy
(DOE) Organization Act (42 U.S.C. 7152); 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 section 5 of the Flood Control Act of 1944
(16 U.S.C. 825s); and other acts specifically applicable to the
projects involved.
By Delegation Order No. 00-037.00B, effective November 19, 2016,
the Secretary of Energy delegated: (1) The authority to develop power
and transmission rates to WAPA's Administrator; (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand or to
disapprove such rates to FERC. Existing DOE procedures for public
participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985 (50 FR 37835).
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents WAPA initiates or uses to develop the proposed rates will be
available for inspection and copying at the Upper Great Plains Regional
Office, located at 2900 4th Avenue North, 6th Floor, Billings, Montana.
These documents and supporting information will be posted on WAPA's Web
site as they become available under the ``2018 Firm Rate Adjustment''
section located at https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.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 is
in the process of determining whether an environmental assessment or an
environmental impact statement should be prepared or if this action can
be categorically excluded from those requirements.
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.
Dated: June 27, 2017.
Mark A. Gabriel,
Administrator.
[FR Doc. 2017-13981 Filed 6-30-17; 8:45 am]
BILLING CODE 6450-01-P
