Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-180, 30858-30861 [2017-13981]

Download as PDF 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. VerDate Sep<11>2014 17:53 Jun 30, 2017 Jkt 241001 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: E:\FR\FM\03JYN1.SGM 03JYN1 Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES 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 VerDate Sep<11>2014 17:53 Jun 30, 2017 Jkt 241001 30859 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 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1 30860 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 VerDate Sep<11>2014 17:53 Jun 30, 2017 Jkt 241001 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 E:\FR\FM\03JYN1.SGM 03JYN1 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 Frm 00046 Fmt 4703 Sfmt 4703 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 http://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 E:\FR\FM\03JYN1.SGM 03JYN1

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.

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

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.
---------------------------------------------------------------------------

    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
----------------------------------------------------------------------------------------------------------------
                                                             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,
-------------------------------------------------------------------2017-----------------------------------------
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
----------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          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
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
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