Integrated System Rate Schedules, 44772-44783 [2017-20034]

Agencies

• DEPARTMENT OF ENERGY
• Southwestern Power Administration

[Federal Register Volume 82, Number 185 (Tuesday, September 26, 2017)]
[Notices]
[Pages 44772-44783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20034]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of extension.

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SUMMARY: The Deputy Secretary has approved and placed into effect on an 
interim basis Rate Order No. SWPA-72 which extends the existing rate 
schedules for the Integrated System:

Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission 
Service
Rate Schedule EE-13, Wholesale Rates for Excess Energy

This is an interim rate action effective October 1, 2017, extending for 
a period of two years through September 30, 2019.

DATES: The effective period for the rate schedules specified in Rate 
Order No. SWPA-72 is October 1, 2017, through September 30, 2019.

FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice 
President, Chief Operating Office, 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-
037.00B, effective November 19, 2016, and 00-001.00F, effective 
November 17, 2014, and pursuant to the implementation authorities in 10 
CFR 903.22(h) and 903.23(a)(3), Rate Order No. SWPA-72 is approved and 
placed into effect on an interim basis for the period October 1, 2017, 
through September 30, 2019, for the following rate schedules:

Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission 
Service
Rate Schedule EE-13, Wholesale Rates for Excess Energy

    These current rate schedules for the Integrated System were 
confirmed and approved on a final basis by the Federal Energy 
Regulatory Commission (FERC) on January 9, 2014, for the period October 
1, 2013, through September 30, 2017. Since initial FERC approval, a new 
section within rate schedule NFTS-13 was added to change from a stated 
rate to a revenue-requirement based methodology to better align with 
practices utilized by the Southwest Power Pool, Inc. Regional 
Transmission Organization. The revised rate schedule NFTS-13 was 
designated NFTS-13A and was subsequently approved on a final basis by 
FERC on March 9, 2017 in Docket No. EF14-1-001 (158 FERC ] 62,182) 
effective through September 30, 2017.
    The Administrator, Southwestern, completed an annual review of the 
continuing adequacy of the existing hydroelectric rate schedules for 
the Integrated System. This review, as presented in the 2017 Power 
Repayment Studies (PRSs), indicated the need for a revenue adjustment 
of 0.7 percent to continue to satisfy cost recovery criteria. Because 
the 0.7 percent revenue adjustment was within Southwestern's 
established 2 percent rate adjustment threshold, the 
Administrator deferred the revenue adjustment and now adopts the two-
year extension of the Integrated System rate schedules.
    The 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'' for the 
proposed extension to the rate schedules. The public was advised by 
notice published in the Federal Register (82 FR 27062), June 13, 2017, 
of the proposed extension of the rate schedules and of the opportunity 
to provide written comments for a period of 30 days ending July 13, 
2017. No comments were received.
    Information regarding the extension of these rate schedules, 
including the rate schedules and other supporting material, is 
available for public review in the offices of Southwestern Power 
Administration, Williams Tower I, One West Third Street, Tulsa, 
Oklahoma 74103. I have reviewed the Southwestern proposal and I approve 
Rate Order No. SWPA-72.

    Dated: September 13, 2017.
Dan Brouillette,
Deputy Secretary.

UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

DEPUTY SECRETARY

    In the matter of: Southwestern Power Administration Integrated 
System Rates

Rate Order No. SWPA-72

ORDER APPROVING EXTENSION OF RATE SCHEDULES 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. 00-037.00B, the Secretary of Energy delegated to the 
Administrator, Southwestern, the authority to develop power and 
transmission rates, delegated to the Deputy Secretary 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

    The following rate schedules for the Integrated System were 
confirmed and approved on a final basis by FERC on January 9, 2014, 
for the period October 1, 2013, through September 30, 2017.

Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates Non-Federal Transmission 
Service
Rate Schedule EE-13, Wholesale Rate for Excess Energy

    Since initial FERC approval, a new section within rate schedule 
NFTS-13 was added to change from a stated rate to a revenue-
requirement based methodology to better align with practices 
utilized by the Southwest Power Pool, Inc. Regional Transmission 
Organization. The revised rate schedule NFTS-13 was designated NFTS-
13A and was subsequently approved on a final basis by FERC on March 
9, 2017 in Docket No. EF14-1-001 (158 FERC ] 62,182) effective 
through September 30, 2017.
    Southwestern followed Title 10 Part 903 of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' (Part 903) for the 
proposed extension of the rate schedules. An opportunity for 
customers and other interested members of the public to review and 
comment on the proposed extension of the rate schedules was 
announced by notice published in the Federal Register on June 13, 
2017, (82 FR 27062), with written comments due by July 13, 2017. No 
comments were received.

[[Page 44773]]

DISCUSSION

    The existing Integrated System rate schedules are based on the 
2013 Power Repayment Studies (PRSs). PRSs have been completed on the 
Integrated System each year since approval of the existing rate 
schedules. The estimated revised annual revenue identified by the 
PRSs since the 2013 PRSs have indicated the need for minimal rate 
increases. Since the revenue changes reflected by the PRSs were 
within the plus-or-minus two percent rate adjustment threshold 
established by the Administrator on June 23, 1987, these rate 
adjustments were deferred in the best interest of the government.
    The 2017 PRSs indicated the need for an annual revenue increase 
of 0.7 percent. As has been the case since the existing rate 
schedules were approved, the 2017 rate adjustment fell within 
Southwestern's plus-or-minus two percent rate adjustment threshold 
and was deferred by the Administrator with no rate filing necessary. 
However, the existing rate schedules are set to expire on September 
30, 2017. Consequently, Southwestern proposes to extend the existing 
rate schedules for a two-year period ending September 30, 2019, on 
an interim basis under the implementation authorities noted in 10 
CFR 903.22(h) and 903.23(a)(3).

COMMENTS AND RESPONSES

    Southwestern received no comments regarding the extension of the 
Integrated System rate schedules.

AVAILABILITY OF INFORMATION

    Information regarding the extension of the rate schedules is 
available for public review in the offices of Southwestern Power 
Administration, Williams Tower I, One West Third Street, Tulsa, 
Oklahoma 74103.

ADMINISTRATION'S CERTIFICATION

    The 2013 Integrated System PRSs indicated that the current rate 
schedules 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. The 2017 Integrated 
System PRSs indicate the need for an annual revenue increase of 0.7 
percent. However, the 2017 rate adjustment falls within 
Southwestern's established plus-or-minus two percent rate adjustment 
threshold and was deferred. Southwestern's 2018 PRSs will determine 
the appropriate level of revenues needed for the next rate period. 
In accordance with Delegation Order Nos. 00-037.00B (November 19, 
2016), and 00-001.00F, effective November 17, 2014, and Section 5 of 
the Flood Control Act of 1944, the Administrator has determined that 
the existing Integrated System rate schedules are the lowest 
possible rates consistent with sound business principles, and their 
extension is consistent with applicable law.

ENVIRONMENT

    The Southwestern NEPA Compliance Officer determined that this 
class of actions is 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 extension of the existing rate schedules 
was conducted since no change in anticipated revenues has been made 
to the currently-approved Integrated System rate schedules.

ADMINISTRATIVE PROCEDURES

    The Administrative Procedure Act (5 U.S.C. 553(d)) 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. The Department of Energy finds 
good cause to waive the 30-day delay in effective date of this 
action as unnecessary for the following reasons: (1) this is an 
extension of rates previously approved by FERC, pursuant to 10 CFR 
903.23(a); (2) there are no substantive changes as the existing rate 
schedules and anticipated revenues remain the same; and (3) the 
Administrator provided notice and opportunity for public comment 
more than 30 days prior to the effective date of the rate extension 
and received no comments.

ORDER

    In view of the foregoing and pursuant to the authority delegated 
to me by the Secretary of Energy, I hereby extend on an interim 
basis, for the period of two years, effective October 1, 2017, 
through September 30, 2019, the current rate schedules for the 
Integrated System:

Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission 
Service
Rate Schedule EE-13, Wholesale Rates for Excess Energy

Dated: September 17, 2017

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Dan Brouillette,

Deputy Secretary.

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE P-13 \1\

     **
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    \1\ Supersedes Rate Schedule P-11.
    ** Extended through September 30, 2019 by approval of Rate Order 
No. SWPA-72 by the Deputy Secretary of Energy.
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WHOLESALE RATES FOR HYDRO PEAKING POWER

Effective:

During the period October 1, 2013, through September 30, 2019**, in 
accordance with Federal Energy Regulatory Commission order issued 
January 9, 2014, Docket No. EF14-1-000.

Available:

In the marketing area of Southwestern Power Administration 
(Southwestern), described generally as the States of Arkansas, 
Kansas, Louisiana, Missouri, Oklahoma, and Texas.

Applicable:

To wholesale Customers which have contractual rights from 
Southwestern to purchase Hydro Peaking Power and associated energy 
(Peaking Energy and Supplemental Peaking Energy).

Character and Conditions of Service:

Three-phase, alternating current, delivered at approximately 60 
Hertz, at the nominal voltage(s), at the point(s) of delivery, and 
in such quantities as are specified by contract.

1.

Definitions of Terms

1.2. Ancillary Services

The services necessary to support the transmission of capacity and 
energy from resources to loads while maintaining reliable operation 
of the System of Southwestern in accordance with good utility 
practice, which include the following:

1.2.1. Scheduling, System Control, and Dispatch Service

is provided by Southwestern as Balancing Authority Area operator and 
is in regard to interchange and load-match scheduling and related 
system control and dispatch functions.

1.2.2. Reactive Supply and Voltage Control from Generation Sources 
Service

is provided at transmission facilities in the System of Southwestern 
to produce or absorb reactive power and to maintain transmission 
voltages within specific limits.

1.2.3. Regulation and Frequency Response Service

is the continuous balancing of generation and interchange resources 
accomplished by raising or lowering the output of on-line generation 
as necessary to follow the moment-by-moment changes in load and to 
maintain frequency within a Balancing Authority Area.

1.2.4. Spinning Operating Reserve Service

maintains generating units on-line, but loaded at less than maximum 
output, which may be used to service load immediately when 
disturbance conditions are experienced due to a sudden loss of 
generation or load.

1.2.5. Supplemental Operating Reserve Service

provides an additional amount of operating reserve sufficient to 
reduce Area Control Error to zero within 10 minutes following loss 
of generating capacity which would result from the most severe 
single contingency.

1.2.6. Energy Imbalance Service

corrects for differences over a period of time between schedules and 
actual hourly deliveries of energy to a load. Energy delivered or 
received within the authorized bandwidth for this service is 
accounted for as an inadvertent flow and is returned to the 
providing party by the receiving party in accordance with standard 
utility practice or

[[Page 44774]]

a contractual arrangement between the parties.

1.3. Customer

The entity which is utilizing and/or purchasing Federal Power and 
Federal Energy and services from Southwestern pursuant to this Rate 
Schedule.

1.4. Demand Period

The period of time used to determine maximum integrated rates of 
delivery for the purpose of power accounting which is the 60-minute 
period that begins with the change of hour.

1.5. Federal Power and Energy

The power and energy provided from the System of Southwestern.

1.6. Hydro Peaking Power

The Federal Power that Southwestern sells and makes available to the 
Customers through their respective Power Sales Contracts in 
accordance with this Rate Schedule.

1.7. Peaking Billing Demand

The quantity equal to the Peaking Contract Demand for any month 
unless otherwise provided by the Customer's Power Sales Contract.

1.8. Peaking Contract Demand

The maximum rate in kilowatts at which Southwestern is obligated to 
deliver Federal Energy associated with Hydro Peaking Power as set 
forth in the Customer's Power Sales Contract.

1.9. Peaking Energy

The Federal Energy associated with Hydro Peaking Power that 
Southwestern sells and makes available to the Customer in accordance 
with the terms and conditions of the Customer's Power Sales 
Contract.

1.10. Power Sales Contract

The Customer's contract with Southwestern for the sale of Federal 
Power and Federal Energy.

1.11. Supplemental Peaking Energy

The Federal Energy associated with Hydro Peaking Power that 
Southwestern sells and makes available to the Customer if determined 
by Southwestern to be available and that is in addition to the 
quantity of Peaking Energy purchased by the Customer in accordance 
with the terms and conditions of the Customer's Power Sales 
Contract.

1.12. System of Southwestern

The transmission and related facilities owned by Southwestern, and/
or the generation, transmission, and related facilities owned by 
others, the capacity of which, by contract, is available to and 
utilized by Southwestern to satisfy its contractual obligations to 
the Customer.

1.13. Uncontrollable Force

Any force which is not within the control of the party affected, 
including, but not limited to failure of water supply, failure of 
facilities, flood, earthquake, storm, lightning, fire, epidemic, 
riot, civil disturbance, labor disturbance, sabotage, war, act of 
war, terrorist acts, or restraint by court of general jurisdiction, 
which by exercise of due diligence and foresight such party could 
not reasonably have been expected to avoid.

2.

Wholesale Rates, Terms, and Conditions for Hydro Peaking Power, Peaking 
Energy, Supplemental Peaking Energy, and Associated Services

Unless otherwise specified, this Section 2 is applicable to all 
sales under the Customer's Power Sales Contract.

2.2. Hydro Peaking Power Rates, Terms, and Conditions

2.2.1. Monthly Capacity Charge for Hydro Peaking Power

$4.50 per kilowatt of Peaking Billing Demand.

2.2.2. Services Associated with Capacity Charge for Hydro Peaking Power

The capacity charge for Hydro Peaking Power includes such 
transmission services as are necessary to integrate Southwestern's 
resources in order to reliably deliver Hydro Peaking Power and 
associated energy to the Customer. This capacity charge also 
includes two Ancillary Services charges: Scheduling, System Control, 
and Dispatch Service; and Reactive Supply and Voltage Control from 
Generation Sources Service.

2.2.3. Secondary Transmission Service under Capacity Associated with 
Hydro Peaking Power

Customers may utilize the transmission capacity associated with 
Peaking Contract Demand for the transmission of non-Federal energy, 
on a non-firm, as-available basis, at no additional charge for such 
transmission service or associated Ancillary Services, under the 
following terms and conditions:

    2.2.3.1. The sum of the capacity, for any hour, which is used 
for Peaking Energy, Supplemental Peaking Energy, and Secondary 
Transmission Service, may not exceed the Peaking Contract Demand;
    2.2.3.2. The non-Federal energy transmitted under such secondary 
service is delivered to the Customer's point of delivery for Hydro 
Peaking Power;
    2.2.3.3. The Customer commits to provide Real Power Losses 
associated with such deliveries of non-Federal energy; and
    2.2.3.4. Sufficient transfer capability exists between the point 
of receipt into the System of Southwestern of such non-Federal 
energy and the Customer's point of delivery for Hydro Peaking Power 
for the time period that such secondary transmission service is 
requested.

2.2.4. Adjustment for Reduction in Service

If, during any month, the Peaking Contract Demand associated with a 
Power Sales Contract in which Southwestern has the obligation to 
provide 1,200 kilowatthours of Peaking Energy per kilowatt of 
Peaking Contract Demand is reduced by Southwestern for a period or 
periods of not less than two consecutive hours by reason of an 
outage caused by either an Uncontrollable Force or by the 
installation, maintenance, replacement or malfunction of generation, 
transmission and/or related facilities on the System of 
Southwestern, or insufficient pool levels, the Customer's capacity 
charges for such month will be reduced for each such reduction in 
service by an amount computed under the formula:

R = (C x K x H) / S

with the factors defined as follows:

R = The dollar amount of reduction in the monthly total capacity 
charges for a particular reduction of not less than two consecutive 
hours during any month, except that the total amount of any such 
reduction shall not exceed the product of the Customer's capacity 
charges associated with Hydro Peaking Power times the Peaking 
Billing Demand.
C = The Customer's capacity charges associated with Hydro Peaking 
Power for the Peaking Billing Demand for such month.
K = The reduction in kilowatts in Peaking Billing Demand for a 
particular event.
H = The number of hours duration of such particular reduction.
S = The number of hours that Peaking Energy is scheduled during such 
month, but not less than 60 hours times the Peaking Contract Demand.

Such reduction in charges shall fulfill Southwestern's obligation to 
deliver Hydro Peaking Power and Peaking Energy.

2.3. Peaking Energy and Supplemental Peaking Energy Rates, Terms, and 
Conditions

2.3.1. Peaking Energy Charge

$0.0094 per kilowatthour of Peaking Energy delivered plus the 
Purchased Power Adder as defined in Section 2.2.3 of this Rate 
Schedule.

2.3.2. Supplemental Energy Charge

$0.0094 per kilowatthour of Supplemental Peaking Energy delivered.

2.3.3. Purchased Power Adder

A purchased power adder of $0.0059 per kilowatthour of Peaking 
Energy delivered, as adjusted by the Administrator, Southwestern, in 
accordance with the procedure within this Rate Schedule.

2.3.3.1. Applicability of Purchased Power Adder

The Purchased Power Adder shall apply to sales of Peaking Energy. 
The Purchased Power Adder shall not apply to sales of Supplemental 
Peaking Energy or sales to any Customer which, by contract, has 
assumed the obligation to supply energy to fulfill the minimum of 
1,200 kilowatthours of Peaking Energy per kilowatt of Peaking 
Contract Demand during a contract year (hereinafter ``Contract 
Support Arrangements'').

2.3.3.2. Procedure for Determining Net Purchased Power Adder Adjustment

Not more than twice annually, the Purchased Power Adder of $0.0059 
(5.9 mills) per kilowatthour of Peaking Energy, as noted in this 
Rate Schedule, may be adjusted by the Administrator, Southwestern, 
by an amount

[[Page 44775]]

up to a total of $0.0059 (5.9 mills) per kilowatthour 
per year, as calculated by the following formula:

ADJ = (PURCH-EST + DIF) / SALES

with the factors defined as follows:

ADJ = The dollar per kilowatthour amount of the total adjustment, 
plus or minus, to be applied to the net Purchased Power Adder, 
rounded to the nearest $0.0001 per kilowatthour, provided that the 
total ADJ to be applied in any year shall not vary from the then-
effective ADJ by more than $0.0059 per kilowatthour;
PURCH = The actual total dollar cost of Southwestern's System Direct 
Purchases as accounted for in the financial records of the 
Southwestern Federal Power System for the period;
EST = The estimated total dollar cost ($13,273,800 per year) of 
Southwestern's System Direct Purchases used as the basis for the 
Purchased Power Adder of $0.0059 per kilowatthour of Peaking Energy;
DIF = The accumulated remainder of the difference in the actual and 
estimated total dollar cost of Southwestern's System Direct 
Purchases since the effective date of the currently approved 
Purchased Power Adder set forth in this Rate Schedule, which 
remainder is not projected for recovery through the ADJ in any 
previous periods;
SALES = The annual Total Peaking Energy sales projected to be 
delivered (2,241,300,000 KWh per year) from the System of 
Southwestern, which total was used as the basis for the $0.0059 per 
kilowatthour Purchased Power Adder.

2.4. Transformation Service Rates, Terms, and Conditions

2.4.1. Monthly Capacity Charge for Transformation Service

$0.46 per kilowatt will be assessed for capacity used to deliver 
energy at any point of delivery at which Southwestern provides 
transformation service for deliveries at voltages of 69 kilovolts or 
less from higher voltage facilities.

2.4.2. Applicability of Capacity Charge for Transformation Service

Unless otherwise specified by contract, for any particular month, a 
charge for transformation service will be assessed on the greater of 
(1) that month's highest metered demand, or (2) the highest metered 
demand recorded during the previous 11 months, at any point of 
delivery. For the purpose of this Rate Schedule, the highest metered 
demand will be based on all deliveries, of both Federal and non-
Federal energy, from the System of Southwestern, at such point 
during such month.

2.5. Ancillary Services Rates, Terms, and Conditions

2.5.1. Capacity Charges for Ancillary Services

2.5.1.1. Regulation and Frequency Response Service

Monthly rate of $0.07 per kilowatt of Peaking Billing Demand plus 
the Regulation Purchased Adder as defined in Section 2.4.5 of this 
Rate Schedule.

2.5.1.2. Spinning Operating Reserve Service

Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.

Daily rate of $0.00066 per kilowatt for non-Federal generation 
inside Southwestern's Balancing Authority Area.

2.5.1.3. Supplemental Operating Reserve Service

Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.

Daily rate of $0.00066 per kilowatt for non-Federal generation 
inside Southwestern's Balancing Authority Area.

2.5.1.4. Energy Imbalance Service

$0.0 per kilowatt for all reservation periods.

2.5.2. Availability of Ancillary Services

Regulation and Frequency Response Service and Energy Imbalance 
Service are available only for deliveries of power and energy to 
load within Southwestern's Balancing Authority Area. Spinning 
Operating Reserve Service and Supplemental Operating Reserve Service 
are available only for deliveries of non-Federal power and energy 
generated by resources located within Southwestern's Balancing 
Authority Area and for deliveries of all Hydro Peaking Power and 
associated energy from and within Southwestern's Balancing Authority 
Area. Where available, such Ancillary Services must be taken from 
Southwestern; unless, arrangements are made in accordance with 
Section 2.4.4 of this Rate Schedule.

2.5.3. Applicability of Charges for Ancillary Services

For any month, the charges for Ancillary Services for deliveries of 
Hydro Peaking Power shall be based on the Peaking Billing Demand.

The daily charge for Spinning Operating Reserve Service and 
Supplemental Operating Reserve Service for non-Federal generation 
inside Southwestern's Balancing Authority Area shall be applied to 
the greater of Southwestern's previous day's estimate of the peak, 
or the actual peak, in kilowatts, of the internal non-Federal 
generation.

2.5.4. Provision of Ancillary Services by Others

Customers for which Ancillary Services are made available as 
specified above, must inform Southwestern by written notice of the 
Ancillary Services which they do not intend to take and purchase 
from Southwestern, and of their election to provide all or part of 
such Ancillary Services from their own resources or from a third 
party.

Subject to Southwestern's approval of the ability of such resources 
or third parties to meet Southwestern's technical and operational 
requirements for provision of such Ancillary Services, the Customer 
may change the Ancillary Services which it takes from Southwestern 
and/or from other sources at the beginning of any month upon the 
greater of 60 days notice or upon completion of any necessary 
equipment modifications necessary to accommodate such change; 
Provided, That, if the Customer chooses not to take Regulation and 
Frequency Response Service, which includes the associated Regulation 
Purchased Adder, the Customer must pursue these services from a 
different host Balancing Authority; thereby moving all metered loads 
and resources from Southwestern's Balancing Authority Area to the 
Balancing Authority Area of the new host Balancing Authority. Until 
such time as that meter reconfiguration is accomplished, the 
Customer will be charged for the Regulation and Frequency Response 
Service and applicable Adder then in effect. The Customer must 
notify Southwestern by July 1 of this choice, to be effective the 
subsequent calendar year.

2.5.5. Regulation Purchased Adder

Southwestern has determined the amount of energy used from storage 
to provide Regulation and Frequency Response Service in order to 
meet Southwestern's Balancing Authority Area requirements. The 
replacement value of such energy used shall be recovered through the 
Regulation Purchased Adder. The Regulation Purchased Adder during 
the time period of January 1 through December 31 of the current 
calendar year is based on the average annual use of energy from 
storage \1\ for Regulation and Frequency Response Service and 
Southwestern's estimated purchased power price for the corresponding 
year from the most currently approved Power Repayment Studies.

    \1\ The average annual use of energy from storage for Regulation 
and Frequency Response Service is based on Southwestern studies.
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The Regulation Purchased Adder will be phased in over a period of 
four (4) years as follows:

------------------------------------------------------------------------
                                          Regulation Purchased Adder for
                                            the Incremental Replacement
                  Year                       Value of Energy Used from
                                                      Storage
------------------------------------------------------------------------
2014....................................  \1/4\ of the average annual
                                           use of energy from storage x
                                           2014 Purchased Power price.
2015....................................  \1/2\ of the average annual
                                           use of energy from storage x
                                           2015 Purchased Power price.
2016....................................  \3/4\ of the average annual
                                           use of energy from storage x
                                           2016 Purchased Power price.
2017 and thereafter.....................  The total average annual use
                                           of energy from storage x the
                                           applicable Purchased Power
                                           price.
------------------------------------------------------------------------


[[Page 44776]]

2.5.5.1. Applicability of Regulation Purchased Adder

The replacement value of the estimated annual use of energy from 
storage for Regulation and Frequency Response Service shall be 
recovered by Customers located within Southwestern's Balancing 
Authority Area on a non-coincident peak ratio share basis, divided 
into twelve equal monthly payments, in accordance with the formula 
in Section 2.4.5.2.

If the Regulation Purchased Adder is determined and applied under 
Southwestern's Rate Schedule NFTS-13, then it shall not be applied 
here.

2.5.5.2. Procedure for Determining Regulation Purchased Adder

Unless otherwise specified by contract, the Regulation Purchased 
Adder for an individual Customer shall be based on the following 
formula rate, calculated to include the replacement value of the 
estimated annual use of energy from storage by Southwestern for 
Regulation and Frequency Response Service.

RPA = The Regulation Purchased Adder for an individual Customer per 
month, which is as follows:
[(L Customer / L Total) x RP Total] 
/ 12

with the factors defined as follows:

L Customer = The sum in MW of the following three 
factors:

    (1) The Customer's highest metered load plus generation used to 
serve the Customer's load that is accounted for through a reduction 
in the Customer's metered load (referred to as `generation behind 
the meter') during the previous calendar year, and
    (2) The Customer's highest rate of Scheduled Exports \2\ during 
the previous calendar year, and
    (3) The Customer's highest rate of Scheduled Imports \2\ during 
the previous calendar year.
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    \2\ Scheduled Exports and Scheduled Imports are transactions, 
such as sales and purchases respectively, which are in addition to a 
Customer's metered load that contribute to Southwestern's Balancing 
Authority Area need for regulation.
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L Total = The sum of all L Customer factors 
for all Customers that were inside Southwestern's Balancing 
Authority Area at the beginning of the previous calendar year in MW.
RP Total = The ``net'' cost in dollars and cents based on 
Southwestern's estimated purchased power price for the corresponding 
year from the most currently approved Power Repayment Studies 
multiplied by the average annual use of energy from storage, as 
provided for in the table in Section 2.4.5, to support 
Southwestern's ability to regulate within its Balancing Authority 
Area. The ``net'' cost in dollars and cents shall be adjusted by 
subtracting the product of the quantity of such average annual use 
of energy from storage in MWh and Southwestern's highest rate in 
dollars per MWh for Supplemental Peaking Energy during the previous 
calendar year.

For Customers that have aggregated their load, resources, and 
scheduling into a single node by contract within Southwestern's 
Balancing Authority Area, the individual Customer's respective 
Regulation Purchased Adder shall be that Customer's ratio share of 
the Regulation Purchased Adder established for the node. Such ratio 
share shall be determined for the Customer on a non-coincident basis 
and shall be calculated for the Customer from their highest metered 
load plus generation behind the meter.

2.5.6. Energy Imbalance Service Limitations

Energy Imbalance Service primarily applies to deliveries of power 
and energy which are required to satisfy a Customer's load. As Hydro 
Peaking Power and associated energy are limited by contract, the 
Energy Imbalance Service bandwidth specified for Non-Federal 
Transmission Service does not apply to deliveries of Hydro Peaking 
Power, and therefore Energy Imbalance Service is not charged on such 
deliveries. Customers who consume a capacity of Hydro Peaking Power 
greater than their Peaking Contract Demand may be subject to a 
Capacity Overrun Penalty.

3.

Hydro Peaking Power Penalties, Terms, and Conditions

3.2. Capacity Overrun Penalty

3.2.1. Penalty Charge for Capacity Overrun

For each hour during which Hydro Peaking Power was provided at a 
rate greater than that to which the Customer is entitled, the 
Customer will be charged a Capacity Overrun Penalty at the following 
rates:

------------------------------------------------------------------------
            Months Associated With Charge              Rate per Kilowatt
------------------------------------------------------------------------
March, April, May, October, November, December.......              $0.15
January, February, June, July, August, September.....               0.30
------------------------------------------------------------------------

3.2.2. Applicability of Capacity Overrun Penalty

Customers which have loads within Southwestern's Balancing Authority 
Area are obligated by contract to provide resources, over and above 
the Hydro Peaking Power and associated energy purchased from 
Southwestern, sufficient to meet their loads. A Capacity Overrun 
Penalty shall be applied only when the formulas provided in 
Customers' respective Power Sales Contracts indicate an overrun on 
Hydro Peaking Power, and investigation determines that all 
resources, both firm and non-firm, which were available at the time 
of the apparent overrun were insufficient to meet the Customer's 
load.

3.3. Energy Overrun Penalty

3.3.1. Penalty Charge for Energy Overrun

$0.1034 per kilowatthour for each kilowatthour of overrun.

3.3.2. Applicability of Energy Overrun Penalty

By contract, the Customer is subject to limitations on the maximum 
amounts of Peaking Energy which may be scheduled under the 
Customer's Power Sales Contract. When the Customer schedules an 
amount in excess of such maximum amounts, such Customer is subject 
to the Energy Overrun Penalty.

3.4. Power Factor Penalty

3.4.1. Requirements Related to Power Factor

Any Customer served from facilities owned by or available by 
contract to Southwestern will be required to maintain a power factor 
of not less than 95 percent and will be subject to the following 
provisions.

3.4.2. Determination of Power Factor

The power factor will be determined for all Demand Periods and shall 
be calculated under the formula:
[GRAPHIC] [TIFF OMITTED] TN26SE17.000

with the factors defined as follows:

PF = The power factor for any Demand Period of the month.
kWh = The total quantity of energy which is delivered during such 
Demand Period to the point of delivery or interconnection in 
accordance with Section 3.3.4.
rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs) 
delivered during such Demand Period to the point of delivery or 
interconnection in accordance with Section 3.3.4.

3.4.3. Penalty Charge for Power Factor

The Customer shall be assessed a penalty for all Demand Periods of a 
month where the power factor is less than 95 percent lagging. For 
any Demand Period during a particular

[[Page 44777]]

month such penalty shall be in accordance with the following 
formula:

C = D x (0.95-LPF) x $0.10

with the factors defined as follows:

C = The charge in dollars to be assessed for any particular Demand 
Period of such month that the determination of power factor ``PF'' 
is calculated to be less than 95 percent lagging.
D = The Customer's demand in kilowatts at the point of delivery for 
such Demand Period in which a low power factor was calculated.
LPF = The lagging power factor, if any, determined by the formula 
``PF'' for such Demand Period.
If C is negative, then C = zero (0).

3.4.4. Applicability of Power Factor Penalty

The Power Factor Penalty is applicable to radial interconnections 
with the System of Southwestern. The total Power Factor Penalty for 
any month shall be the sum of all charges ``C'' for all Demand 
Periods of such month. No penalty is assessed for leading power 
factor. Southwestern, in its sole judgment and at its sole option, 
may determine whether power factor calculations should be applied to 
(i) a single physical point of delivery, (ii) a combination of 
physical points of delivery where a Customer has a single, 
electrically integrated load, (iii) or interconnections. The general 
criteria for such decision shall be that, given the configuration of 
the Customer's and Southwestern's systems, Southwestern will 
determine, in its sole judgment and at its sole option, whether the 
power factor calculation more accurately assesses the detrimental 
impact on Southwestern's system when the above formula is calculated 
for a single physical point of delivery, a combination of physical 
points of delivery, or for an interconnection as specified by an 
Interconnection Agreement.

Southwestern, at its sole option, may reduce or waive Power Factor 
Penalties when, in Southwestern's sole judgment, low power factor 
conditions were not detrimental to the System of Southwestern due to 
particular loading and voltage conditions at the time the power 
factor dropped below 95 percent lagging.

4. Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions

4.2. Real Power Losses

Customers are required to self-provide all Real Power Losses for 
non-Federal energy transmitted by Southwestern on behalf of such 
Customers under the provisions detailed below.

Real Power Losses are computed as four (4) percent of the total 
amount of non-Federal energy transmitted by Southwestern. The 
Customer's monthly Real Power Losses are computed each month on a 
megawatthour basis as follows:

ML = 0.04 x NFE

with the factors defined as follows:

ML = The total monthly loss energy, rounded to the nearest 
megawatthour, to be scheduled by a Customer for receipt by 
Southwestern for Real Power Losses associated with non-Federal 
energy transmitted on behalf of such Customer; and
NFE = The amount of non-Federal energy that was transmitted by 
Southwestern on behalf of a Customer during a particular month.

The Customer must schedule or cause to be scheduled to Southwestern, 
Real Power Losses for which it is responsible subject to the 
following conditions:

    4.2.1. The Customer shall schedule and deliver Real Power Losses 
back to Southwestern during the second month after they were 
incurred by Southwestern in the transmission of the Customer's non-
Federal power and energy over the System of Southwestern unless such 
Customer has accounted for Real Power Losses as part of a metering 
arrangement with Southwestern.
    4.2.2. On or before the twentieth day of each month, 
Southwestern shall determine the amount of non-Federal loss energy 
it provided on behalf of the Customer during the previous month and 
provide a written schedule to the Customer setting forth hour-by-
hour the quantities of non-Federal energy to be delivered to 
Southwestern as losses during the next month.
    4.2.3. Real Power Losses not delivered to Southwestern by the 
Customer, according to the schedule provided, during the month in 
which such losses are due shall be billed by Southwestern to the 
Customer to adjust the end-of-month loss energy balance to zero (0) 
megawatthours and the Customer shall be obliged to purchase such 
energy at the following rates:

------------------------------------------------------------------------
                                                            Rate per
            Months associated with charge                 kilowatthour
------------------------------------------------------------------------
March, April, May, October, November, December.......              $0.15
January, February, June, July, August, September.....              $0.30
------------------------------------------------------------------------

    4.2.4. Real Power Losses delivered to Southwestern by the 
Customer in excess of the losses due during the month shall be 
purchased by Southwestern from the Customer at a rate per 
megawatthour equal to Southwestern's rate per megawatthour for 
Supplemental Peaking Energy, as set forth in Southwestern's then-
effective Rate Schedule for Hydro Peaking Power to adjust such 
hourly end-of-month loss energy balance to zero (0) megawatthours.

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE NFTS-13 \1\ **
---------------------------------------------------------------------------

    \1\ Supersedes Rate Schedule NFTS-13.
    ** Extended through September 30, 2019 by approval of Rate Order 
No. SWPA-72 by the Deputy Secretary of Energy.
---------------------------------------------------------------------------

WHOLESALE RATES FOR NON-FEDERAL TRANSMISSION/INTERCONNECTION FACILITIES 
SERVICE

Effective

During the period January 1, 2017, through September 30, 2019 **, in 
accordance with Federal Energy Regulatory Commission order issued 
March 9, 2017, Docket No. EF14-1-001.

Available

In the region of the System of Southwestern.

Applicable

To Customers which have executed Service Agreements with 
Southwestern for the transmission of non-Federal power and energy 
over the System of Southwestern or for its use for interconnections. 
Southwestern will provide services over those portions of the System 
of Southwestern in which the Administrator, Southwestern, in his or 
her sole judgment, has determined that uncommitted transmission and 
transformation capacities in the System of Southwestern are and will 
be available in excess of the capacities required to market Federal 
power and energy pursuant to Section 5 of the Flood Control Act of 
1944 (58 Stat. 887,890; 16 U.S.C. 825s).

Character and Conditions of Service

Three-phase, alternating current, delivered at approximately 60 
Hertz, at the nominal voltage(s), at the point(s) specified by 
Service Agreement or Transmission Service Transaction.

1.

Definitions of Terms

1.2. Ancillary Services

The services necessary to support the transmission of capacity and 
energy from resources to loads while maintaining reliable operation 
of the System of Southwestern in accordance with good utility 
practice, which include the following:

1.2.1. Scheduling, System Control, and Dispatch Service

is provided by Southwestern as Balancing Authority Area operator and 
is in regard to interchange and load-match scheduling and related 
system control and dispatch functions.

[[Page 44778]]

1.2.2. Reactive Supply and Voltage Control from Generation Sources 
Service

is provided at transmission facilities in the System of Southwestern 
to produce or absorb reactive power and to maintain transmission 
voltages within specific limits.

1.2.3. Regulation and Frequency Response Service

is the continuous balancing of generation and interchange resources 
accomplished by raising or lowering the output of on-line generation 
as necessary to follow the moment-by-moment changes in load and to 
maintain frequency within a Balancing Authority Area.

1.2.4. Spinning Operating Reserve Service

maintains generating units on-line, but loaded at less than maximum 
output, which may be used to service load immediately when 
disturbance conditions are experienced due to a sudden loss of 
generation or load.

1.2.5. Supplemental Operating Reserve Service

provides an additional amount of operating reserve sufficient to 
reduce Area Control Error to zero within 10 minutes following loss 
of generating capacity which would result from the most severe 
single contingency.

1.2.6. Energy Imbalance Service

corrects for differences over a period of time between schedules and 
actual hourly deliveries of energy to a load. Energy delivered or 
received within the authorized bandwidth for this service is 
accounted for as an inadvertent flow and is returned to the 
providing party by the receiving party in accordance with standard 
utility practice or a contractual arrangement between the parties.

1.3. Customer

The entity which is utilizing and/or purchasing services from 
Southwestern pursuant to this Rate Schedule.

1.4. Demand Period

The period of time used to determine maximum integrated rates of 
delivery for the purpose of power accounting which is the 60-minute 
period that begins with the change of hour.

1.5. Firm Point-to-Point Transmission Service

Transmission service reserved on a firm basis between specific 
points of receipt and delivery pursuant to either a Firm 
Transmission Service Agreement or to a Transmission Service 
Transaction.

1.6. Interconnection Facilities Service

A service that provides for the use of the System of Southwestern to 
deliver energy and/or provide system support at an interconnection.

1.7. Network Integration Transmission Service

Transmission service provided under Part III of Southwestern's Open 
Access Transmission Service Tariff which provides the Customer with 
firm transmission service for the delivery of capacity and energy 
from the Customer's resources to the Customer's load.

1.8. Interconnection Facilities Service

A service that provides for the use of the System of Southwestern to 
deliver energy and/or provide system support at an interconnection.

1.9. Network Integration Transmission Service

Transmission service provided under Part III of Southwestern's Open 
Access Transmission Service Tariff which provides the Customer with 
firm transmission service for the delivery of capacity and energy 
from the Customer's resources to the Customer's load.

1.10. Non-Firm Point-to-Point Transmission Service

Transmission service reserved on a non-firm basis between specific 
points of receipt and delivery pursuant to a Transmission Service 
Transaction.

1.11. Point of Delivery

Either a single physical point to which electric power and energy 
are delivered from the System of Southwestern, or a specified set of 
delivery points which together form a single, electrically 
integrated load.

1.12. Secondary Transmission Service

Service that is associated with Firm Point-to-Point Transmission 
Service and Network Integration Transmission Service. For Firm 
Point-to-Point Transmission Service, it consists of transmission 
service provided on an as-available, non-firm basis, scheduled 
within the limits of a particular capacity reservation for 
transmission service, and scheduled from points of receipt, or to 
points of delivery, other than those designated in a Long-Term Firm 
Transmission Service Agreement or a Transmission Service Transaction 
for Firm Point-to-Point Transmission Service. For Network 
Integration Transmission Service, Secondary Transmission Service 
consists of transmission service provided on an as-available, non-
firm basis, from resources other than the network resources 
designated in a Network Transmission Service Agreement, to meet the 
Customer's network load. The charges for Secondary Transmission 
Service, other than Ancillary Services, are included in the 
applicable capacity charges for Firm Point-to-Point Transmission 
Service and Network Integration Transmission Service.

1.13. Service Agreement

A contract executed between a Customer and Southwestern for the 
transmission of non-Federal power and energy over the System of 
Southwestern or for interconnections which include the following:

1.13.1. Firm Transmission Service Agreement

provides for reserved transmission capacity on a firm basis, for a 
particular point-to-point delivery path.

1.13.2. Interconnection Agreement

provides for the use of the System of Southwestern and recognizes 
the exchange of mutual benefits for such use or provides for 
application of a charge for Interconnection Facilities Service.

1.13.3. Network Transmission Service Agreement

provides for the Customer to request firm transmission service for 
the delivery of capacity and energy from the Customer's network 
resources to the Customer's network load, for a period of one year 
or more.

1.13.4. Non-Firm Transmission Service Agreement

provides for the Customer to request transmission service on a non-
firm basis.

1.14. Service Request

The request made under a Transmission Service Agreement through the 
Southwest Power Pool, Inc. (hereinafter ``SPP'') Open Access Same-
Time Information System (hereinafter ``OASIS'') for reservation of 
transmission capacity over a particular point-to-point delivery path 
for a particular period. The Customer must submit hourly schedules 
for actual service in addition to the Service Request.

1.15. System of Southwestern

The transmission and related facilities owned by Southwestern, and/
or the generation, transmission, and related facilities owned by 
others, the capacity of which, by contract, is available to and 
utilized by Southwestern to satisfy its contractual obligations to 
the Customer.

1.16. Transmission Service Transaction

A Service Request that has been approved by SPP.

1.17. Uncontrollable Force

Any force which is not within the control of the party affected, 
including, but not limited to failure of water supply, failure of 
facilities, flood, earthquake, storm, lightning, fire, epidemic, 
riot, civil disturbance, labor disturbance, sabotage, war, act of 
war, terrorist acts, or restraint by court of general jurisdiction, 
which by exercise of due diligence and foresight such party could 
not reasonably have been expected to avoid.

2.

Wholesale Rates, Terms, and Conditions for Firm Point-to-Point 
Transmission Service, Non-Firm Point-to-Point Transmission Service, 
Network Integration Transmission Service, and Interconnection 
Facilities Service

2.2. Firm Point-to-Point Transmission Service Rates, Terms, and 
Conditions

2.2.1. Monthly Capacity Charge for Firm Point-to-Point Transmission 
Service

$1.48 per kilowatt of transmission capacity reserved in increments 
of one month of service or invoiced in accordance with a longer term 
agreement.

2.2.2. Weekly Capacity Charge for Firm Point-to-Point Transmission 
Service

$0.370 per kilowatt of transmission capacity reserved in increments 
of one week of service.

[[Page 44779]]

2.2.3. Daily Capacity Charge for Firm Point-to-Point Transmission 
Service

$0.0673 per kilowatt of transmission capacity reserved in increments 
of one day of service.

2.2.4. Services Associated with Capacity Charge for Firm Point-to-Point 
Transmission Service

The capacity charge for Firm Point-to-Point Transmission Service 
includes Secondary Transmission Service, but does not include 
charges for Ancillary Services associated with actual schedules.

2.2.5. Applicability of Capacity Charge for Firm Point-to-Point 
Transmission Service

Capacity charges for Firm Point-to-Point Transmission Service are 
applied to quantities reserved by contract under a Firm Transmission 
Service Agreement or in accordance with a Transmission Service 
Transaction.

A Customer, unless otherwise specified by contract, will be assessed 
capacity charges on the greatest of (1) the highest metered demand 
at any particular Point of Delivery during a particular month, 
rounded up to the nearest whole megawatt, or (2) the highest metered 
demand recorded at such Point of Delivery during any of the previous 
11 months, rounded up to the nearest whole megawatt, or (3) the 
capacity reserved by contract; which amount shall be considered such 
Customer's reserved capacity. Secondary Transmission Service for 
such Customer shall be limited during any month to the most recent 
metered demand on which that Customer is billed or to the capacity 
reserved by contract, whichever is greater.

2.3. Non-Firm Point-to-Point Transmission Service Rates, Terms, and 
Conditions

2.3.1. Monthly Capacity Charge for Non-Firm Point-to-Point Transmission 
Service

80 percent of the monthly capacity charge for Firm Point-to-Point 
Transmission Service reserved in increments of one month.

2.3.2. Weekly Capacity Charge for Non-Firm Point-to-Point Transmission 
Service

80 percent of the monthly capacity charge divided by 4 for Firm 
Point-to-Point Transmission Service reserved in increments of one 
week.

2.3.3. Daily Capacity Charge for Non-Firm Point-to-Point Transmission 
Service

80 percent of the monthly capacity charge divided by 22 for Firm 
Point-to-Point Transmission Service reserved in increments of one 
day.

2.3.4. Hourly Capacity Charge for Non-Firm Point-to-Point Transmission 
Service

80 percent of the monthly capacity charge divided by 352 for Firm 
Point-to-Point Transmission Service reserved in increments of one 
hour.

2.3.5. Applicability of Charges for Non-Firm Point-to-Point 
Transmission Service

Capacity charges for Non-Firm Point-to-Point Transmission Service 
are applied to quantities reserved under a Transmission Service 
Transaction, and do not include charges for Ancillary Services.

2.4. Network Integration Transmission Service Rates, Terms, and 
Conditions

2.4.1. Annual Revenue Requirement for Network Integration Transmission 
Service

$15,533,800.

2.4.2. Monthly Revenue Requirement for Network Integration Transmission 
Service

$1,294,483.

2.4.3. Net Capacity Available for Network Integration Transmission 
Service

872,000 kilowatts.

2.4.4. Monthly Capacity Charge for Network Integration Transmission 
Service

$1.48 per kilowatt of Network Load (charge derived from $1,294,483 / 
872,000 kilowatts).

2.4.5. Applicability of Charges for Network Integration Transmission 
Service

Network Integration Transmission Service is available only for 
deliveries of non-Federal power and energy, and is applied to the 
Customer utilizing such service exclusive of any deliveries of 
Federal power and energy. The capacity on which charges for any 
particular Customer utilizing this service is determined on the 
greatest of (1) the highest metered demand at any particular point 
of delivery during a particular month, rounded up to the nearest 
whole megawatt, or (2) the highest metered demand recorded at such 
point of delivery during any of the previous 11 months, rounded up 
to the nearest whole megawatt.

For a Customer taking Network Integration Transmission Service who 
is also taking delivery of Federal Power and Energy, the highest 
metered demand shall be determined by subtracting the energy 
scheduled for delivery of Federal Power and Energy for any hour from 
the metered demand for such hour.

Secondary transmission Service for a Customer shall be limited 
during any month to the most recent highest metered demand on which 
such Customer is billed. Charges for Ancillary Services shall also 
be assessed.

2.4.6. Procedure for Determining SPP Open Access Transmission Tariff 
Network Integration Transmission Service Annual Revenue Requirement

The SPP Open Access Transmission Tariff Network Integration 
Transmission Service Annual Revenue Requirement shall be based on 
the following formula which shall be calculated when a Customer 
transitions from a Service Agreement to an agreement for Network 
Integration Transmission Service under the SPP Open Access 
Transmission Tariff.

SPP NITS ARR = Southwestern's SPP Network Integration Transmission 
Service Annual Revenue Requirement, which is as follows:

(SPP NITS Capacity/Southwestern NITS Capacity) x Southwestern NITS 
ARR

with the factors defined as follows:

SPP NITS Capacity = The capacity on the System of Southwestern 
utilized for SPP Network Integration Transmission Service which 
shall be based on the currently approved Power Repayment Studies.
Southwestern NITS Capacity = Net Capacity Available for Network 
Integration Transmission Service on the System of Southwestern as 
specified in Section 2.3.3.
Southwestern NITS ARR = Southwestern's Annual Revenue Requirement 
for Network Integration Transmission Service as specified in Section 
2.3.1.

2.5. Interconnection Facilities Service Rates, Terms, and Conditions

2.5.1. Monthly Capacity Charge for Interconnection Facilities Service

$1.48 per kilowatt.

2.5.2. Applicability of Capacity Charge for Interconnection Facilities 
Service

Any Customer that requests an interconnection from Southwestern 
which, in Southwestern's sole judgment and at its sole option, does 
not provide commensurate benefits or compensation to Southwestern 
for the use of its facilities shall be assessed a capacity charge 
for Interconnection Facilities Service. For any month, charges for 
Interconnection Facilities Service shall be assessed on the greater 
of (1) that month's actual highest metered demand, or (2) the 
highest metered demand recorded during the previous eleven months, 
as metered at the interconnection. The use of Interconnection 
Facilities Service will be subject to power factor provisions as 
specified in this Rate Schedule. The interconnection customer shall 
also schedule and deliver Real Power Losses pursuant to the 
provisions of this Rate Schedule based on metered flow through the 
interconnection where Interconnection Facilities Services is 
assessed.

2.6. Transformation Service Rates, Terms, and Conditions

2.6.1. Monthly Capacity Charge for Transformation Service

$0.46 per kilowatt will be assessed for capacity used to deliver 
energy at any point of delivery at which Southwestern provides 
transformation service for deliveries at voltages of 69 kilovolts or 
less from higher voltage facilities.

2.6.2. Applicability of Capacity Charge for Transformation Service

Unless otherwise specified by contract, for any particular month, a 
charge for transformation service will be assessed on the greater of 
(1) that month's highest metered demand, or (2) the highest metered 
demand recorded during the previous 11 months, at any point of 
delivery. For the purpose of this Rate Schedule, the highest metered 
demand will be based on all deliveries, of both Federal and non-
Federal energy, from the System of Southwestern, at such point 
during such month.

[[Page 44780]]

2.7. Ancillary Services Rates, Terms, and Conditions

2.7.1. Capacity Charges for Ancillary Services

2.7.1.1. Scheduling, System Control, and Dispatch Service

Monthly rate of $0.09 per kilowatt of transmission capacity reserved 
in increments of one month of service or invoiced in accordance with 
a Long-Term Firm Transmission Service Agreement or Network 
Transmission Service Agreement.

Weekly rate of $0.023 per kilowatt of transmission capacity reserved 
in increments of one week of service.

Daily rate of $0.0041 per kilowatt of transmission capacity reserved 
in increments of one day of service.

Hourly rate of $0.00026 per kilowatt of transmission energy 
delivered as non-firm transmission service.

2.7.1.2. Reactive Supply and Voltage Control from Generation Sources 
Service

Monthly rate of $0.04 per kilowatt of transmission capacity reserved 
in increments of one month of service or invoiced in accordance with 
a Long-Term Firm Transmission Service Agreement or Network 
Transmission Service Agreement.

Weekly rate of $0.010 per kilowatt of transmission capacity reserved 
in increments of one week of service.

Daily rate of $0.0018 per kilowatt of transmission capacity reserved 
in increments of one day of service.

Hourly rate of $0.00011 per kilowatt of transmission energy 
delivered as non-firm transmission service.

2.7.1.3. Regulation and Frequency Response Service

Monthly rate of $0.07 per kilowatt of transmission capacity reserved 
in increments of one month of service or invoiced in accordance with 
a Long-Term Firm Transmission Service Agreement or Network 
Transmission Service Agreement plus the Regulation Purchased Adder 
as defined in Section 2.6.5 of this Rate Schedule.

Weekly rate of $0.018 per kilowatt of transmission capacity reserved 
in increments of one week of service plus the Regulation Purchased 
Adder as defined in Section 2.6.5 of this Rate Schedule.

Daily rate of $0.0032 per kilowatt of transmission capacity reserved 
in increments of one day of service plus the Regulation Purchased 
Adder as defined in Section 2.6.5 of this Rate Schedule.

Hourly rate of $0.00020 per kilowatt of transmission energy 
delivered as non-firm transmission service plus the Regulation 
Purchased Adder as defined in Section 2.6.5 of this Rate Schedule.

2.7.1.4. Spinning Operating Reserve Service

Monthly rate of $0.0146 per kilowatt of transmission capacity 
reserved in increments of one month of service or invoiced in 
accordance with a Long-Term Firm Transmission Service Agreement or 
Network Transmission Service Agreement.

Weekly rate of $0.00365 per kilowatt of transmission capacity 
reserved in increments of one week of service.

Daily rate of $0.00066 per kilowatt of transmission capacity 
reserved in increments of one day of service.

Hourly rate of $0.00004 per kilowatt of transmission energy 
delivered as non-firm transmission service.

2.7.1.5. Supplemental Operating Reserve Service

Monthly rate of $0.0146 per kilowatt of transmission capacity 
reserved in increments of one month of service or invoiced in 
accordance with a Long-Term Firm Transmission Service Agreement or 
Network Transmission Service Agreement.

Weekly rate of $0.00365 per kilowatt of transmission capacity 
reserved in increments of one week of service.

Daily rate of $0.00066 per kilowatt of transmission capacity 
reserved in increments of one day of service.

Hourly rate of $0.00004 per kilowatt of transmission energy 
delivered as non-firm transmission service.

2.7.1.6. Energy Imbalance Service

$0.0 per kilowatt for all reservation periods.

2.7.2. Availability of Ancillary Services

Scheduling, System Control, and Dispatch Service and Reactive Supply 
and Voltage Control from Generation Sources Service are available 
for all transmission services in and from the System of Southwestern 
and shall be provided by Southwestern. Regulation and Frequency 
Response Service and Energy Imbalance Service are available only for 
deliveries of power and energy to load within Southwestern's 
Balancing Authority Area, and shall be provided by Southwestern, 
unless, subject to Southwestern's approval, they are provided by 
others. Spinning Operating Reserve Service and Supplemental 
Operating Reserve Service are available only for deliveries of power 
and energy generated by resources located within Southwestern's 
Balancing Authority Area and shall be provided by Southwestern, 
unless, subject to Southwestern's approval, they are provided by 
others.

2.7.3. Applicability of Charges for Ancillary Services

Charges for all Ancillary Services are applied to the transmission 
capacity reserved or network transmission service taken by the 
Customer in accordance with the rates listed above when such 
services are provided by Southwestern.

The charges for Ancillary Services are considered to include 
Ancillary Services for any Secondary Transmission Service, except in 
cases where Ancillary Services identified in Sections 2.6.1.3 
through 2.6.1.6 of this Rate Schedule are applicable to a 
Transmission Service Transaction of Secondary Transmission Service, 
but are not applicable to the transmission capacity reserved under 
which Secondary Transmission Service is provided. When charges for 
Ancillary Services are applicable to Secondary Transmission Service, 
the charge for the Ancillary Service shall be the hourly rate 
applied to all energy transmitted utilizing the Secondary 
Transmission Service.

2.7.4. Provision of Ancillary Services by Others

Customers for which Ancillary Services identified in Sections 
2.6.1.3 through 2.6.1.6 of this Rate Schedule are made available as 
specified above must inform Southwestern by written notice of the 
Ancillary Services which they do not intend to take and purchase 
from Southwestern, and of their election to provide all or part of 
such Ancillary Services from their own resources or from a third 
party. Such notice requirements also apply to requests for 
Southwestern to provide Ancillary Services when such services are 
available as specified above.

Subject to Southwestern's approval of the ability of such resources 
or third parties to meet Southwestern's technical and operational 
requirements for provision of such Ancillary Services, the Customer 
may change the Ancillary Services which it takes from Southwestern 
and/or from other sources at the beginning of any month upon the 
greater of 60 days written notice or upon the completion of any 
necessary equipment modifications necessary to accommodate such 
change; Provided, That, if the Customer chooses not to take 
Regulation and Frequency Response Service, which includes the 
associated Regulation Purchased Adder, the Customer must pursue 
these services from a different host Balancing Authority; thereby 
moving all metered loads and resources from Southwestern's Balancing 
Authority Area to the Balancing Authority Area of the new host 
Balancing Authority. Until such time as that meter reconfiguration 
is accomplished, the Customer will be charged for the Regulation and 
Frequency Response Service and applicable Adder then in effect. The 
Customer must notify Southwestern by July 1 of this choice, to be 
effective the subsequent calendar year.

2.7.5. Regulation Purchased Adder

Southwestern has determined the amount of energy used from storage 
to provide Regulation and Frequency Response Service in order to 
meet Southwestern's Balancing Authority Area requirements. The 
replacement value of such energy used shall be recovered through the 
Regulation Purchased Adder. The Regulation Purchased Adder during 
the time period of January 1 through December 31 of the current 
calendar year is based on the average annual use of energy from 
storage \1\ for Regulation and Frequency Response Service and

[[Page 44781]]

Southwestern's estimated purchased power price for the corresponding 
year from the most currently approved Power Repayment Studies.

    \1\ The average annual use of energy from storage for Regulation 
and Frequency Response Service is based on Southwestern studies.
---------------------------------------------------------------------------

The Regulation Purchased Adder will be phased in over a period of 
four (4) years as follows:

------------------------------------------------------------------------
                                          Regulation Purchased Adder for
                                            the Incremental Replacement
                  Year                       Value of Energy Used from
                                                      Storage
------------------------------------------------------------------------
2014....................................  \1/4\ of the average annual
                                           use of energy from storage x
                                           2014 Purchased Power price.
2015....................................  \1/2\ of the average annual
                                           use of energy from storage x
                                           2015 Purchased Power price.
2016....................................  \3/4\ of the average annual
                                           use of energy from storage x
                                           2016 Purchased Power price.
2017 and thereafter.....................  The total average annual use
                                           of energy from storage x the
                                           applicable Purchased Power
                                           price.
------------------------------------------------------------------------

2.7.5.1. Applicability of Regulation Purchased Adder

The replacement value of the estimated annual use of energy from 
storage for Regulation and Frequency Response Service shall be 
recovered by Customers located within Southwestern's Balancing 
Authority Area on a non-coincident peak ratio share basis, divided 
into twelve equal monthly payments, in accordance with the formula 
in Section 2.6.5.2.

If the Regulation Purchased Adder is determined and applied under 
Southwestern's Rate Schedule P-13, then it shall not be applied 
here.

2.7.5.2. Procedure for Determining Regulation Purchased Adder

Unless otherwise specified by contract, the Regulation Purchased 
Adder for an individual Customer shall be based on the following 
formula rate, calculated to include the replacement value of the 
estimated annual use of energy from storage by Southwestern for 
Regulation and Frequency Response Service.

RPA = The Regulation Purchased Adder for an individual Customer per 
month, which is as follows:

[(L Customer / L Total) x RP Total 
] / 12

with the factors defined as follows:

L Customer = The sum in MW of the following three 
factors:

(1) The Customer's highest metered load plus generation used to 
serve the Customer's load that is accounted for through a reduction 
in the Customer's metered load (referred to as `generation behind 
the meter') during the previous calendar year, and
(2) The Customer's highest rate of Scheduled Exports \2\ during the 
previous calendar year, and
(3) The Customer's highest rate of Scheduled Imports \2\ during the 
previous calendar year.

    \2\ Scheduled Exports and Scheduled Imports are transactions, 
such as sales and purchases respectively, which are in addition to a 
Customer's metered load that contribute to Southwestern's Balancing 
Authority Area need for regulation.
---------------------------------------------------------------------------

L Total = The sum of all L Customer factors 
for all Customers that were inside Southwestern's Balancing 
Authority Area at the beginning of the previous calendar year in MW.
RP Total = The ``net'' cost in dollars and cents based on 
Southwestern's estimated purchased power price for the corresponding 
year from the most currently approved Power Repayment Studies 
multiplied by the average annual use of energy from storage, as 
provided for in the table in Section 2.6.5, to support 
Southwestern's ability to regulate within its Balancing Authority 
Area. The ``net'' cost in dollars and cents shall be adjusted by 
subtracting the product of the quantity of such average annual use 
of energy from storage in MWh and Southwestern's highest rate in 
dollars per MWh for Supplemental Peaking Energy during the previous 
calendar year.

For Customers that have aggregated their load, resources, and 
scheduling into a single node by contract within Southwestern's 
Balancing Authority Area, the individual Customer's respective 
Regulation Purchased Adder shall be that Customer's ratio share of 
the Regulation Purchased Adder established for the node. Such ratio 
share shall be determined for the Customer on a non-coincident basis 
and shall be calculated for the Customer from their highest metered 
load plus generation behind the meter.

2.7.6. Energy Imbalance Service Limitations

    Energy Imbalance Service is authorized for use only within a 
bandwidth of  1.5 percent of the actual requirements of 
the load at a particular point of delivery, for any hour, compared 
to the resources scheduled to meet such load during such hour. 
Deviations which are greater than  1.5 percent, but 
which are less than  2,000 kilowatts, are considered to 
be within the authorized bandwidth. Deviations outside the 
authorized bandwidth are subject to a Capacity Overrun Penalty.

Energy delivered or received within the authorized bandwidth for 
this service is accounted for as an inadvertent flow and will be 
netted against flows in the future. The inadvertent flow in any 
given hour will only be offset with the flows in the corresponding 
hour of a day in the same category. Unless otherwise specified by 
contract, the two categories of days are weekdays and weekend days/
North American Electric Reliability Corporation holidays, and this 
process will result in a separate inadvertent accumulation for each 
hour of the two categories of days. The hourly accumulations in the 
current month will be added to the hourly inadvertent balances from 
the previous month, resulting in a month-end balance for each hour.

The Customer is required to adjust the scheduling of resources in 
such a way as to reduce the accumulation towards zero. It is 
recognized that the inadvertent hourly flows can be both negative 
and positive, and that offsetting flows should deter a significant 
accumulation of inadvertent. Unless otherwise specified by contract, 
in the event any hourly month-end balance exceeds 12 MWhs, the 
excess will be subject to Section 3.1 or Section 3.2 of this Rate 
Schedule, depending on the direction of the accumulation.

3.

Non-Federal Transmission/Interconnection Facilities Service Penalties, 
Terms, and Conditions

3.1. Capacity Overrun Penalty

3.1.1. Penalty Charge for Capacity Overrun

For each hour during which energy flows outside the authorized 
bandwidth, the Customer will be obliged to purchase such energy at 
the following rates:

------------------------------------------------------------------------
            Months Associated With Charge              Rate per Kilowatt
------------------------------------------------------------------------
March, April, May, October, November, December.......              $0.15
January, February, June, July, August, September.....              $0.30
------------------------------------------------------------------------

3.1.2. Applicability of Capacity Overrun Penalty

Customers who receive deliveries within Southwestern's Balancing 
Authority Area are obligated to provide resources sufficient to meet 
their loads. Such obligation is not related to the amount of 
transmission capacity that such Customers may have reserved for 
transmission service to a particular load. In the event that a 
Customer underschedules its resources to serve its load, resulting 
in a difference between

[[Page 44782]]

resources and actual metered load (adjusted for transformer losses 
as applicable) outside the authorized bandwidth for Energy Imbalance 
Service for any hour, then such Customer is subject to the Capacity 
Overrun Penalty.

3.2. Unauthorized Use of Energy Imbalance Service by Overscheduling of 
Resources

In the event that a Customer schedules greater resources than are 
needed to serve its load, such that energy flows at rates beyond the 
authorized bandwidth for the use of Energy Imbalance Service, 
Southwestern retains such energy at no cost to Southwestern and with 
no obligation to return such energy.

3.3. Power Factor Penalty

3.3.1. Requirements Related to Power Factor

Any Customer served from facilities owned by or available by 
contract to Southwestern will be required to maintain a power factor 
of not less than 95 percent and will be subject to the following 
provisions.

3.3.2. Determination of Power Factor

    The power factor will be determined for all Demand Periods and 
shall be calculated under the formula:
[GRAPHIC] [TIFF OMITTED] TN26SE17.001

with the factors defined as follows:

PF = The power factor for any Demand Period of the month.
kWh = The total quantity of energy which is delivered during such 
Demand Period to the point of delivery or interconnection in 
accordance with Section 3.3.4.
rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs) 
delivered during such Demand Period to the point of delivery or 
interconnection in accordance with Section 3.3.4.

3.3.3. Penalty Charge for Power Factor

The Customer shall be assessed a penalty for all Demand Periods of a 
month where the power factor is less than 95 percent lagging. For 
any Demand Period during a particular month such penalty shall be in 
accordance with the following formula:

C = D x (0.95-LPF) x $0.10

with the factors defined as follows:

C = The charge in dollars to be assessed for any particular Demand 
Period of such month that the determination of power factor ``PF'' 
is calculated to be less than 95 percent lagging.
D = The Customer's demand in kilowatts at the point of delivery for 
such Demand Period in which a low power factor was calculated.
LPF = The lagging power factor, if any, determined by the formula 
``PF'' for such Demand Period.

If C is negative, then C = zero (0).

3.3.4. Applicability of Power Factor Penalty

The Power Factor Penalty is applicable to radial interconnections 
with the System of Southwestern. The total Power Factor Penalty for 
any month shall be the sum of all charges ``C'' for all Demand 
Periods of such month. No penalty is assessed for leading power 
factor. Southwestern, in its sole judgment and at its sole option, 
may determine whether power factor calculations should be applied to 
(i) a single physical point of delivery, (ii) a combination of 
physical points of delivery where a Customer has a single, 
electrically integrated load, (iii) or interconnections. The general 
criteria for such decision shall be that, given the configuration of 
the Customer's and Southwestern's systems, Southwestern will 
determine, in its sole judgment and at its sole option, whether the 
power factor calculation more accurately assesses the detrimental 
impact on Southwestern's system when the above formula is calculated 
for a single physical point of delivery, a combination of physical 
points of delivery, or for an interconnection as specified by an 
Interconnection Agreement.

Southwestern, at its sole option, may reduce or waive Power Factor 
Penalties when, in Southwestern's sole judgment, low power factor 
conditions were not detrimental to the System of Southwestern due to 
particular loading and voltage conditions at the time the power 
factor dropped below 95 percent lagging.

4.

Non-Federal Transmission/Interconnection Facilities Service 
Miscellaneous Rates, Terms, and Conditions

4.2. Real Power Losses

Customers are required to self-provide all Real Power Losses for 
non-Federal energy transmitted by Southwestern on behalf of such 
Customers under the provisions detailed below.

Real Power Losses are computed as four (4) percent of the total 
amount of non-Federal energy transmitted by Southwestern. The 
Customer's monthly Real Power Losses are computed each month on a 
megawatthour basis as follows:

ML = 0.04 x NFE

with the factors defined as follows:

ML = The total monthly loss energy, rounded to the nearest 
megawatthour, to be scheduled by a Customer for receipt by 
Southwestern for Real Power Losses associated with non-Federal 
energy transmitted on behalf of such Customer; and
NFE = The amount of non-Federal energy that was transmitted by 
Southwestern on behalf of a Customer during a particular month.

The Customer must schedule or cause to be scheduled to Southwestern, 
Real Power Losses for which it is responsible subject to the 
following conditions:

    4.2.1. The Customer shall schedule and deliver Real Power Losses 
back to Southwestern during the second month after they were 
incurred by Southwestern in the transmission of the Customer's non-
Federal power and energy over the System of Southwestern unless such 
Customer has accounted for Real Power Losses as part of a metering 
arrangement with Southwestern.
    4.2.2. On or before the twentieth day of each month, 
Southwestern shall determine the amount of non-Federal loss energy 
it provided on behalf of the Customer during the previous month and 
provide a written schedule to the Customer setting forth hour-by-
hour the quantities of non-Federal energy to be delivered to 
Southwestern as losses during the next month.
    4.2.3. Real Power Losses not delivered to Southwestern by the 
Customer, according to the schedule provided, during the month in 
which such losses are due shall be billed by Southwestern to the 
Customer to adjust the end-of-month loss energy balance to zero (0) 
megawatthours and the Customer shall be obliged to purchase such 
energy at the following rates:

------------------------------------------------------------------------
                                                            Rate per
            Months Associated With Charge                 Kilowatthour
------------------------------------------------------------------------
March, April, May, October, November, December.......              $0.15
January, February, June, July, August, September.....              $0.30
------------------------------------------------------------------------

    4.2.4. Real Power Losses delivered to Southwestern by the 
Customer in excess of the losses due during the month shall be 
purchased by Southwestern from the Customer at a rate per 
megawatthour equal to Southwestern's rate per megawatthour for 
Supplemental Peaking Energy, as set forth in Southwestern's then-
effective Rate Schedule for Hydro Peaking Power to adjust such 
hourly end-of-month loss energy balance to zero (0) megawatthours.

[[Page 44783]]

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE EE-13 \1\ **
---------------------------------------------------------------------------

    \1\ Supersedes Rate Schedule EE-11.
    ** Extended through September 30, 2019 by approval of Rate Order 
No. SWPA-72 by the Deputy Secretary of Energy.
---------------------------------------------------------------------------

WHOLESALE RATES FOR EXCESS ENERGY

Effective:

During the period October 1, 2013, through September 30, 2019 **, in 
accordance with Federal Energy Regulatory Commission order issued 
January 9, 2014, Docket No. EF14-1-000.

Available:

In the marketing area of Southwestern Power Administration 
(Southwestern), described generally as the States of Arkansas, 
Kansas, Louisiana, Missouri, Oklahoma, and Texas.

Applicable:

To electric utilities which, by contract, may purchase Excess Energy 
from Southwestern.

Character and Conditions of Service:

Three-phase, alternating current, delivered at approximately 60 
Hertz, at the nominal voltage(s) and at the point(s) of delivery 
specified by contract.

1.

Wholesale Rates, Terms, and Conditions for Excess Energy

Excess Energy will be furnished at such times and in such amounts as 
Southwestern determines to be available.

1.1. Transmission and Related Ancillary Services

Transmission service for the delivery of Excess Energy shall be the 
sole responsibility of such customer purchasing Excess Energy.

1.2. Excess Energy Charge

$0.0094 per kilowatthour of Excess Energy delivered.

[FR Doc. 2017-20034 Filed 9-25-17; 8:45 am]
BILLING CODE 6450-01-P