Olmsted Powerplant Replacement Project-Rate Order No. WAPA-177, 20065-20070 [2018-09623]

Download as PDF daltland on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices Docket Numbers: ER10–2390–003; ER10–2394–005; ER10–2395–005 ER10– 2422–005; ER11–3642–018; ER12–1562– 005 ER12–1563–005. Applicants: Bicent (California) Malburg LLC, BIV Generation Company, L.L.C., Cayuga Operating Company, LLC, Colorado Power Partners, Rocky Mountain Power, LLC, Tanner Street Generation, LLC, Somerset Operating Company, LLC. Description: Notice of Non-Material Change in Status of Bicent (California) Malburg LLC, et. al. Filed Date: 4/30/18. Accession Number: 20180430–5461. Comments Due: 5 p.m. ET 5/21/18. Docket Numbers: ER18–1184–000; ER18–1183–000. Applicants: Delta Solar Power II, LLC, Delta Solar Power I, LLC. Description: Supplement to March 22, 2018 Delta Solar Power I, LLC and Delta Solar Power II, LLC tariff filings. Filed Date: 4/27/18. Accession Number: 20180427–5308. Comments Due: 5 p.m. ET 5/18/18. Docket Numbers: ER18–1480–000. Applicants: PJM Interconnection, L.L.C. Description: § 205(d) Rate Filing: First Revised ISA, SA No. 2133, Queue No. AC1–140 to be effective 3/29/2018. Filed Date: 4/30/18. Accession Number: 20180430–5301. Comments Due: 5 p.m. ET 5/21/18. Docket Numbers: ER18–1481–000. Applicants: Duke Energy Florida, LLC. Description: § 205(d) Rate Filing: DEF IA Annual Cost Factor Update (2018) to be effective 5/1/2018. Filed Date: 4/30/18. Accession Number: 20180430–5328. Comments Due: 5 p.m. ET 5/21/18. Docket Numbers: ER18–1482–000. Applicants: Pacific Gas and Electric Company. Description: § 205(d) Rate Filing: Q1 2018 Quarterly Filing of City and County of San Francisco’s WDT SA (SA 275) to be effective 3/31/2018. Filed Date: 4/30/18. Accession Number: 20180430–5343. Comments Due: 5 p.m. ET 5/21/18. Docket Numbers: ER18–1483–000. Applicants: PJM Interconnection, L.L.C. Description: § 205(d) Rate Filing: 1st Quarter 2018 Revisions to OA, Sch. 12 and RAA, Sch. 17 Member Lists to be effective 3/31/2018. Filed Date: 4/30/18. Accession Number: 20180430–5351. Comments Due: 5 p.m. ET 5/21/18. Docket Numbers: ER18–1485–000. Applicants: New England Power Pool Participants Committee. VerDate Sep<11>2014 17:38 May 04, 2018 Jkt 244001 Description: § 205(d) Rate Filing: May 2018 Membership Filing to be effective 4/1/2018. Filed Date: 5/1/18. Accession Number: 20180501–5009. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1486–000. Applicants: AEP Ohio Transmission Company, Inc. Description: § 205(d) Rate Filing: OHTCo-Buckeye Cardinal SA to be effective 6/30/2018. Filed Date: 5/1/18. Accession Number: 20180501–5010. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1487–000. Applicants: Southwestern Electric Power Company. Description: § 205(d) Rate Filing: Rayburn Revised PSA to be effective 5/31/2018. Filed Date: 5/1/18. Accession Number: 20180501–5016. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1488–000. Applicants: AEP Texas Inc. Description: § 205(d) Rate Filing: AEP TX-Texas-New Mexico Power IA 3rd Amend & Restated to be effective 4/16/ 2018. Filed Date: 5/1/18. Accession Number: 20180501–5273. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1489–000. Applicants: SP Cimarron I, LLC. Description: § 205(d) Rate Filing: Market-Based Rate Tariff Amendment to Reflect Name Change to be effective 5/2/2018. Filed Date: 5/1/18. Accession Number: 20180501–5275. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1490–000. Applicants: AEP Texas Inc. Description: § 205(d) Rate Filing: AEP TX-Patriot Wind Farm IA 4th Amend & Restated to be effective 4/13/2018. Filed Date: 5/1/18. Accession Number: 20180501–5278. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1491–000. Applicants: AEP Texas Inc. Description: § 205(d) Rate Filing: AEPTX-Las Majadas Wind Farm Interconnection Agreement to be effective 4/13/2018. Filed Date: 5/1/18. Accession Number: 20180501–5280. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1492–000. Applicants: PJM Interconnection, L.L.C. Description: § 205(d) Rate Filing: First Revised ISA, SA No. 4627; Queue No. AA1–076/AC1–108 to be effective 3/30/ 2018. Filed Date: 5/1/18. PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 20065 Accession Number: 20180501–5288. Comments Due: 5 p.m. ET 5/22/18. Docket Numbers: ER18–1493–000. Applicants: Midcontinent Independent System Operator, Inc. Description: § 205(d) Rate Filing: 2018–05–01_Order 825 Price Formation True-up Filing to be effective 7/1/2018. Filed Date: 5/1/18. Accession Number: 20180501–5293. Comments Due: 5 p.m. ET 5/22/18. The filings are accessible in the Commission’s eLibrary system by clicking on the links or querying the docket number. Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission’s Regulations (18 CFR 385.211 and 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding. eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: http://www.ferc.gov/ docs-filing/efiling/filing-req.pdf. For other information, call (866) 208–3676 (toll free). For TTY, call (202) 502–8659. Dated: May 1, 2018. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2018–09614 Filed 5–4–18; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Western Area Power Administration Olmsted Powerplant Replacement Project-Rate Order No. WAPA–177 Western Area Power Administration, DOE. ACTION: Notice of order concerning final rate for the Olmsted Powerplant Replacement Project. AGENCY: The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA–177 and Rate Schedule F–1, placing the formula rate for the Western Area Power Administration (WAPA) Olmsted Powerplant Replacement Project (Olmsted) into effect on an interim basis (Provisional Formula Rate). DATES: The Provisional Formula Rate Schedule Olmsted F–1 is effective on the first day of the first, full billing period beginning on or after June 6, 2018, and will remain in effect through May 6, 2023, pending confirmation and SUMMARY: E:\FR\FM\07MYN1.SGM 07MYN1 20066 Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices approval by the Federal Energy Regulatory Commission (FERC) on a final basis or until superseded. FOR FURTHER INFORMATION CONTACT: Mr. Brent Osiek, Power Marketing Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 299 South Main Street, Suite 200, Salt Lake City, UT 84111, telephone (801) 524–5495, or Mr. Thomas Hackett, Rates Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 299 South Main Street, Suite 200, Salt Lake City, UT 84111, telephone (801) 524–5503, email hackett@wapa.gov. SUPPLEMENTARY INFORMATION: Olmsted is located at the mouth of Provo Canyon in northern Utah and is a part of the Central Utah Project, a participating project of the Colorado River Storage Project (CRSP). In order to secure water rights necessary for the Central Utah Project, the United States Department of the Interior initiated condemnation proceedings in 1987 to acquire the Olmsted facility from Utah Power and Light (now PacifiCorp). Under the terms of the condemnation settlement agreement, PacifiCorp was allowed to operate the Olmsted facility until September 2015. Upon expiration of the settlement agreement, replacement construction began due to the age and condition of the existing generating plant. The Project is scheduled to begin commercial service on August 1, 2018. Olmsted is a ‘‘take all, pay all’’ project; i.e., the annual revenue requirement is not dependent upon the amount of energy available each year. Customers with an allocation, as determined by the marketing plan process, will receive a proportional share of the energy and will annually pay a proportional share of the operation, maintenance, and replacement (OM&R) expenses in 12 monthly installments. This Notice establishes the initial formula rate for Olmsted under Rate Schedule F–1. The initial formula rate is as follows: Annual Revenue Requirement = Projected OM&R Costs + Projected Interest + Projected Principal Payments ± True-Up Adjustment. daltland on DSKBBV9HB2PROD with NOTICES Legal Authority 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 the Administrator of WAPA; (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 VerDate Sep<11>2014 17:38 May 04, 2018 Jkt 244001 authority to confirm, approve, and place into effect on a final basis, to remand, or to disapprove such rates to FERC. Federal rules (10 CFR part 903) govern DOE procedures for public participation in power rate adjustments. Under Delegation Order Nos. 00– 037.00B and 00–001.00F and in compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm, approve, and place Rate Order No. WAPA–177, Olmsted Powerplant Replacement Project, into effect on an interim basis. The new Rate Schedule F–1 will be submitted to FERC for confirmation and approval on a final basis. Dated: April 30, 2018. Dan Brouillette, Deputy Secretary of Energy. DEPARTMENT OF ENERGY DEPUTY SECRETARY In the matter of: Western Area Power Administration, Rate Order for the Olmsted Powerplant Replacement Project. Rate Order No. WAPA–177 ORDER CONFIRMING, APPROVING, AND PLACING THE OLMSTED POWERPLANT REPLACEMENT PROJECT FORMULA RATE INTO EFFECT ON AN INTERIM BASIS The formula rate for the Olmsted Powerplant Replacement Project (Olmsted) set forth in this order is established in accordance with section 302 of the Department of Energy (DOE) Organization Act (42 U.S.C. 7152). This Act transferred to, and vested in, the Secretary of Energy the power marketing functions of the Secretary of the Department of the Interior and the Bureau of Reclamation (Reclamation) under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Act of 1939 (43 U.S.C. 485h(c)); and other acts that specifically apply 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 the Administrator of Western Area Power Administration (WAPA); (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 the Federal Energy Regulatory Commission (FERC). Federal rules (10 CFR part 903) PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 govern DOE procedures for public participation in power rate adjustments. Acronyms, Terms, and Definitions As used in this Rate Order, the following acronyms, terms, and definitions apply: Allocation: A portion of Olmsted generation assigned a particular customer. CRSP Act Section 5(c): All revenues collected in connection with the operation of the Colorado River Storage Project and participating projects shall be credited to the Basin Fund, and shall be available, without further appropriation, for (1) defraying the costs of operation, maintenance, and replacements of, and emergency expenditures for, all facilities of the Colorado River Storage Project and participating projects, within such separate limitations as may be included in annual appropriation acts; lrovided, that with respect to each participating projects, such costs shall be paid from revenues received from each such project; (2) payment as required by subsection (d) of this section; and (3) payment as required by subsection (e) of this section. Revenues credited to the Basin Fund shall not be available for appropriation for construction of the units and participating projects authorized by or pursuant to this Act. Customer: An entity with a contract that is receiving an allocation of the Olmsted generation. DOE Order RA 6120.2: An order outlining power marketing administration financial reporting and ratemaking procedures. Energy: Measured in terms of the work it is capable of doing over a period of time. Electric energy is expressed in kilowatt-hours. Environmental Documentation: Includes the Olmsted Hydroelectric Powerplant Replacement Project Final Environmental Assessment, Finding of No Significant Impact (FONSI) and the Memorandum of Agreement among the CUWCD, Interior, and the Utah State Historical Preservation Officer regarding the Olmsted Hydroelectric Powerplant Replacement Project. FY: Fiscal year; October 1 to September 30. Funding Agreement: Parties to the agreement are United States Department of the Interior—Bureau of Reclamation (Reclamation), United States Department of the Interior—Central Utah Project Completion Act Office, and Central Utah Water Conservancy District (District). The agreement describes the sources of funding for the project including non-Federal contributed E:\FR\FM\07MYN1.SGM 07MYN1 Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices funds and provides for the transfer of funds from Reclamation to the District. Implementation Agreement: Memorandum of Understanding among the United States Department of the Interior—Bureau of Reclamation (Reclamation), United States Department of the Interior—Central Utah Project Completion Act Office, Central Utah Water Conservancy District, and Western Area Power Administration. It describes the proposed project and responsibilities of the parties. Installment: Annual Revenue Requirement billed to customers in 12 equal monthly payments. M&I: Municipal and Industrial water supplies and uses. MW: Megawatt—the electrical unit of capacity that equals 1 million watts or 1,000 kilowatts. O&M: Operation and Maintenance. OM&R: Operation, Maintenance, and Replacements. Power: Rate at which electric energy is transferred. Electric power is measured by capacity and is commonly expressed in megawatts. Provisional Formula Rate: A formula rate confirmed, approved, and placed into effect on an interim basis by the Deputy Secretary of Energy. PRS: Power Repayment Study. Revenue Requirement: The revenue required by the PRS to recover annual expenses (such as O&M, transmission service expenses, interest, and deferred expenses) and repay Federal investments and other assigned costs. Effective Date The Provisional Olmsted Formula Rate Schedule F–1 will take effect on the first day of the first, full billing period beginning on or after June 6, 2018, and will remain in effect through May 6, 2023, pending approval by FERC on a final basis or until superseded. daltland on DSKBBV9HB2PROD with NOTICES Public Notice and Comment WAPA followed the Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in developing this rate and schedule. The steps WAPA took to involve interested parties in the rate process were: 1. A Federal Register notice (FRN), published on October 12, 2017 (82 FR 47506) (Proposal FRN), announced the proposed rate for Olmsted and began the 90-day public consultation and comment period. 2. On October 17, 2017, WAPA’s CRSP MC emailed an announcement of the November 17, 2017, public information and public comment forums to power customers of the CRSP VerDate Sep<11>2014 17:38 May 04, 2018 Jkt 244001 MC, CRSP transmission customers, and interested parties, along with the Rate Brochure, which contained a copy of the published FRN proposal. This information was also posted to website: https://www.wapa.gov/regions/CRSP/ rates/Pages/rates.aspx. 3. On November 17, 2017, at 10 a.m. (MST), WAPA held a public information forum at the CRSP MC, 299 South Main Street, Suite 200, Salt Lake City, Utah. WAPA provided information about the proposed Olmsted formula rate. WAPA also answered questions and gave notice that more information was available in the customer rate brochure and on the website located at https:// www.wapa.gov/regions/CRSP/rates/ Pages/rate-order-177.aspx. 4. On November 17, 2017, directly following the public information forum, WAPA held a public comment forum at the same location to provide an opportunity for customers and other interested parties to comment for the record. Three verbal comments were received at this forum. 5. WAPA posted critical dates, customer letters, presentations, FRNs, customer brochure, and other information about this rate process at the website located at: https:// www.wapa.gov/regions/CRSP/rates/ Pages/rate-order-177.aspx. Updates to the site were posted as follows: October 17, 2017: Olmsted Customer Brochure, Customer Letter for Proposed FRN, and the Published FRN—Olmsted Proposed Rates. November 15, 2017: Updated Customer Brochure with updated Table 1 (pg. 7) and Schedule (pg. 16). November 17, 2017: Public Information Forum Presentation. December 4, 2017: Implementation Agreement, Memorandum of Concurrence, Funding Agreement, Table A & Olmsted Costs. December 6, 2017: Public Information Forum and Public Comment Forum transcripts. January 25, 2018: Letter Agreement No: 92–SLC–0208, Olmsted Final Environmental Assessment, comment letters received during the public comment period. 6. During the 90-day consultation and comment period that ended on January 10, 2018, WAPA received three verbal comments and five comment letters. The comments and WAPA’s responses are addressed below. All comments have been considered in the preparation of this Rate Order. Three representatives from the following organizations made verbal comments: Central Utah Water Conservancy District, Utah PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 20067 Colorado River Energy Distributors Association, Arizona Utah Associated Municipal Power Systems, Utah Five representatives from the following organizations provided written comments: Central Utah Project Completion Act Office, Utah Central Utah Water Conservancy District, Utah Colorado River Energy Distributors Association, Arizona Utah Associated Municipal Power Systems, Utah Utah Municipal Power Agency Project Description Olmsted is located at the mouth of Provo Canyon in northern Utah and is a part of the Central Utah Project, a participating project of the Colorado River Storage Project (CRSP). In order to secure water rights necessary for the Central Utah Project, the United States Department of the Interior initiated condemnation proceedings in 1987 to acquire the Olmsted facility from Utah Power and Light (now PacifiCorp). Under the terms of the condemnation settlement agreement, PacifiCorp was allowed to operate the Olmsted facility until September 2015. Upon expiration of the settlement agreement, replacement construction began due to the age and condition of the existing generating plant. Olmsted is scheduled to begin commercial service on August 1, 2018. Olmsted is a ‘‘take all, pay all’’ project; i.e., the annual revenue requirement is not dependent on the amount of energy available each year. Customers with an allocation, as determined by the marketing plan process, will receive a proportional share of the energy and will annually pay a share of the operation, maintenance, and replacement (OM&R) expenses in 12 monthly installments. Power Repayment Study—Formula Rate Repayment criteria are based on applicable laws and legislation as well as policies including DOE Order RA 6120.2. To meet the Cost Recovery Criteria outlined in DOE Order RA 6120.2, WAPA will prepare a Power Repayment Study (PRS) each FY to determine if revenues will be sufficient to repay, within the required time, all costs assigned to Olmsted. Under the provisional rate methodology, the formula rate for Olmsted is designed to recover an annual revenue requirement that includes power investment repayment, E:\FR\FM\07MYN1.SGM 07MYN1 20068 Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices interest, O&M, and other expenses within the allowable period. The annual revenue requirement is proportionally distributed among all customers that have an allocated portion of Olmsted energy production. Annual OM&R obligations and related costs for Olmsted will be paid by designated revenues deposited in the Basin Fund, pursuant to the authority of Section 5(c) of the CRSP Act, attributable to the Central Utah Project including the OM&R costs of Olmsted Facilities; OM&R costs for the Olmsted Facilities located upstream of Olmsted Facilities; and costs associated with preservation of the historic power house that will be preserved and maintained as a museum as agreed with the Utah Division of State History (State Historic Preservation Office) as part of the National Environmental Policy Act (NEPA) process associated with Olmsted. The actual and projected investment and OM&R costs requiring repayment are shown in Table 1. TABLE 1—PROJECTED INVESTMENT AND OM&R COSTS REIMBURSABLE BY POWER CUSTOMERS FY 2018 2019 2020 2021 2022 2023 2024 Capitalized Generation/SCADA ...... Historic Preservation .... ........................ ........................ $5,815,169 ........................ ........................ $500,000 ........................ $500,000 ........................ $500,000 ........................ ........................ ........................ ........................ Total Capitalized ... ........................ 5,815,169 500,000 500,000 500,000 ........................ ........................ Expensed $10,000 0 0 10,000 10,000 50,000 10,000 100,000 39,054 27,500 10,000 200,000 20,000 175,000 277,724 10,000 10,000 200,000 20,000 180,250 352,976 10,000 10,000 200,000 20,000 185,658 206,070 27,500 10,000 200,000 $50,000 191,227 177,754 10,000 10,000 200,000 $30,000 196,964 342,087 10,000 10,000 200,000 Total O&M ............. daltland on DSKBBV9HB2PROD with NOTICES Historic Preservation .... Powerplant ................... Intake & Pipeline .......... USBR O&M .................. WAPA O&M ................. Wheeling Charge ......... 80,000 386,554 692,724 773,226 649,227 638,981 789,051 WAPA will calculate the annual revenue requirement based on 2 years of data. The calculation includes the projected costs of the rate installment year (future FY) and an adjustment from the last historic FY. Annual revenues pay the annual amortized portion of the United States’ investment in Olmsted with interest and the associated OM&R. The adjustment is the surplus or deficit that occurs in the last historic year when actual costs and repayment obligations are subtracted from actual revenues. This surplus or deficit is combined with the projected rate installment year costs to arrive at the revenue requirement. To date, all investments are accounted for as Construction in Progress (CIP) costs and have not been transferred to plant accounts for capitalization. Once transferred, a straight-line amortization schedule will be calculated for repayment. Historical financial data are only available through FY 2016, and projections are based on the FY 2019 Reclamation and WAPA work plans received in April 2017, as indicated in Table 1. WAPA will provide Olmsted power customers with the initial installment information at least 30 days prior to initiation of service. The FY 2018 annual installment will include all projected FY 2018 OM&R costs requiring repayment through FY 2018. The FY 2018 installment amount will be VerDate Sep<11>2014 17:38 May 04, 2018 Jkt 244001 divided by the number of months of service, which is anticipated to be 3 months. Thereafter, the annual installment amount, billed in 12 monthly payments, will be established in advance by WAPA and submitted to Olmsted power customers on or before August 31 prior to the new FY. The FY 2019 annual installment will include the projected FY 2019 OM&R costs in addition to amortized payments on capital investments plus interest. The FY 2020 annual installment will be similar to FY 2019; however, it will include the FY 2018 final financial data and any True-Up between the FY 2018 projected costs and the actual FY 2018 costs. Existing and Provisional Formula Rates There is no existing rate for the Project. This Notice establishes the initial formula rate for Olmsted under Rate Schedule F–1. The initial formula rate is as follows: Annual Revenue Requirement = Projected OM&R Costs + Projected Interest + Projected Principal Payments ± True-Up Adjustment. Certification of Rates WAPA’s Administrator certified that the Provisional Formula Rate for the Olmsted Powerplant Replacement Project under Rate Schedule F–1 results in the lowest possible rate consistent with sound business principles. PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 Basis for Rate Development The Provisional Formula Rate under Rate Schedule F–1 will provide sufficient revenue to pay all annual costs, including interest expenses, and repay investments within the allowable periods. Comments WAPA received three verbal comments and five comment letters during the public consultation and comment period. The comments expressed have been paraphrased, where appropriate, without compromising the meaning of the comments. Direct quotes from comment letters are used for clarity where necessary. Comment: One commenter stated they are contributing up to 15 million of local tax revenues to support this project and are counting on power revenues to reimburse O&M expenses. Response: WAPA’s rate captures the yearly O&M expenses related to power, and those expenses will be included in the rate as will the repayment of funds from Section 5(c) of the CRSP Act contributed to the project. WAPA acknowledges that the cost of the Olmsted Project is being supported by local tax dollars as well from other funding sources. Comment: Commenter appreciated the information provided by WAPA during the public information and E:\FR\FM\07MYN1.SGM 07MYN1 daltland on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices comment forum as well as on the website. Response: WAPA will continue its efforts to provide transparency throughout the process. Comment: Commenter supports the proposed rate formula, which is consistent with the rate structure of the Provo River Project, including the trueup provisions to ensure only actual costs are attributed to the project and billed to customers. Response: WAPA acknowledges the comment. Comment: Commenter requested to be kept apprised of any revisions to Table A of the implementation agreement and to be notified and included in the annual customer/stakeholder meetings due to their relationship with Reclamation and WAPA. Commenter suggested that all attendees at the forum(s) be notified of the availability of updated and additional information. Response: A list of updates is posted in the ‘‘Public Notice and Comment’’ section of this document. WAPA sends out notifications when uploading data to the website so all participants have equitable access to the same information. Olmsted customers will be invited to annual rate meetings to discuss yearly repayment expenses as well as planned O&M costs. Comment: A commenter stated given the successful customer/agency partnership model of Agreement No. 92–SLC–0208, WAPA, Reclamation, and CUWCD should consider a similar process/agreement with the ultimate allottees of the Olmsted Project as a complement to Olmsted Implementation Agreement (Contract WS15–100). Response: While this comment is not within the scope of this rate process, WAPA has posted a copy of Agreement No. 92–SLC–0208 to the Olmsted Rate website located at https:// www.wapa.gov/regions/CRSP/rates/ Pages/rate-order-177.aspx for informational purposes and for consideration in future discussions about whether a similar partnership agreement would be appropriate. Comment: Commenter asked whether the WAPA O&M rate component includes appropriate overhead/loading costs to ensure there is no subsidy between other WAPA projects and the Olmsted Project. Response: In addition to power marketing labor costs, the work plan includes depreciation expense (ADEPR), and applies both a headquarters’ and regional Administrative & General Expense (AGE) overhead burden similar to all CRSP MC projects. Comment: Commenter questioned the difference between the cost table in the VerDate Sep<11>2014 17:38 May 04, 2018 Jkt 244001 Proposal FRN and the one presented at the public information forum. Additionally, there was a request to provide additional delineation in the Olmsted O&M table including which costs associated with the historic preservation of the Olmsted Powerhouse would be capitalized versus expensed. Response: WAPA used the cost table from the Implementation Agreement in the Proposal FRN. WAPA subsequently received an update from CUWCD with additional construction costs that increased the total estimated project by 12 million and that cost table was introduced at the public information forum. However, of the differences noted between the tables, only the 300,000 increase in CRSP Act Section 5(c) funding is reimbursable by power customers. The capitalized and expensed costs for historic preservation are segregated in Table 1. Comment: A commenter stated, that: ‘‘The annual revenues projected from the power revenue for each annual installment, adjusted as provided in the rate order, must be sufficient to reimburse the annual O&M expenses for operation of the Olmsted Project and must not be decreased on account of other revenue also deposited into the Basin Fund. The CUWCD anticipates participating in annual customer meetings and coordinating, more often outside those annual customer meetings, with the CUPCA office of the Department of Interior, Reclamation Power office and WAPA, to provide budget work plans and capital improvement and rehabilitation plans that can be used for calculating the most accurate annual installments by WAPA.’’ Response: Revenues received from the sale of Olmsted power will be deposited in the Basin Fund and identified as being associated with the Central Utah Project. Funds are available for the O&M and the annual rate update will provide sufficient funding for those activities associated with Olmsted operations without negatively affecting funding available for other CUP activities. WAPA welcomes continued coordination and participation of interested parties in the development and application of the Olmsted rate. Comment: Commenters questioned how much of the $837,670 is associated with historic preservation costs for converting the original power plant into a museum, as well as details of that work; the specific requirement(s) for preservation; the legal authority for including the costs as O&M; whether costs could be capitalized and repaid over forty years instead of expensed and repaid over 3 years; the intent regarding PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 20069 use of the facility as a museum and if it is intended to be accessible by the public. Response: Upon review of future cost estimates, it has been determined that historic preservation costs, estimated at $500,000 per year for FY 2020 thru FY 2022, should be capitalized rather than expensed as initially presented at the November 17, 2017, public information forum. This is reflected in Table 1 and was posted to the website on February 14, 2018. The original Olmsted Powerhouse is listed on the National Register of Historic Places and scheduled tours will be conducted in the renovated museum. The structural improvements to the existing Powerhouse are outlined in Section 5 of the Memorandum of Agreement among CUWCD, Interior, and the Utah State Historic Preservation Officer that was signed in October 2014 and was posted along with the Environmental Assessment (EA) and Finding of No Significant Impact (FONSI) to the website on January 25, 2018. Comment: Commenters questioned the funding source for the historical preservation work and whether nonreimbursable appropriations have been or could be requested/obtained in accordance with Section 8 of the CRSP Act. Response: CRSP Act Section 8 funding will not be available. The Bureau of Reclamation’s authorized construction cost ceiling for the Bonneville Unit M&I System was fully utilized. As a result, Olmsted is not authorized for additional construction appropriations. Comment: Commenter expressed concern about a statement by WAPA during the public information forum that at the end of the contract period in 2024, the Olmsted Project may be included into CRSP. Customers asked for clarification and an explanation of what options WAPA is currently contemplating for Olmsted. Customers oppose any changes that would shift costs to CRSP. Response: The marketing plan is not within the scope of this process. WAPA will seek public comments when it conducts a public process for the Post2024 Marketing Plan prior to the end of the current Marketing Plan. Availability of Information Information about this rate schedule, including the customer rate brochure, PRSs, comments, letters, memorandums, and other supporting materials that were used to develop the Provisional Formula Rates, is available for inspection and copying at the Colorado River Storage Project E:\FR\FM\07MYN1.SGM 07MYN1 20070 Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices Management Center, 299 South Main Street, Suite 200, Salt Lake City, Utah. Many of these documents are also available on WAPA’s website at https:// www.wapa.gov/regions/CRSP/rates/ Pages/rate-order-177.aspx. Deputy Secretary of Energy. Ratemaking Procedure Requirements Electric Power Service, (Approved Under Rate Order No. WAPA–177) 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 adopted the EA and FONSI prepared by the Central Utah Water District for the Olmsted Powerplant Replacement Project. In addition, WAPA has determined that the marketing of Olmsted power and the establishment of power rates for the marketing of that power are Federal actions that are categorically excluded from the preparation of an EA or an environmental impact statement. A copy of the categorical exclusion determination is available on WAPA’s website at https://www.wapa.gov/ regions/RM/environment/Pages/ CX2017.aspx. Determination Under Executive Order 12866 WAPA has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no review of this Notice by the Office of Management and Budget is required. daltland on DSKBBV9HB2PROD with NOTICES Submission to the Federal Energy Regulatory Commission The Provisional Formula Rates herein confirmed, approved, and placed into effect on an interim basis, together with supporting documents, will be submitted to FERC for confirmation and final approval. Order In view of the foregoing and under the authority delegated to me, I confirm and approve on an interim basis, effective the first full billing period on or after June 6, 2018, Rate Schedule F–1 for the Olmsted Powerplant Replacement Project of the Western Area Power Administration. This rate schedule shall remain in effect on an interim basis, pending the Federal Energy Regulatory Commission’s confirmation and approval of it, or substitute rate, on a final basis through May 6, 2023, or until superseded. Dated: April 30, 2018. Dan Brouillette, VerDate Sep<11>2014 17:38 May 04, 2018 Jkt 244001 United States Department of Energy Western Area Power Administration Colorado River Storage Project Management Center Olmsted Powerplant Replacement Project Effective The first day of the first, full billing period beginning on or after June 6, 2018, and extending through May 6, 2023, or until superseded by another rate schedule, whichever occurs earlier. Available Within the marketing area served by the Colorado River Storage Project; parts of Northern Utah. Applicable To the sale of total plant generation to all customers with an Olmsted allocation. Character Alternating current, 60 hertz, three-phase, delivered and metered at the voltages and points established by contract. Formula Rate Annual Revenue Requirement = Projected OM&R Costs + Projected Interest + Projected Principal Payments ± True-Up Adjustment. Adjustments True-Up Adjustment: The surplus or deficit that occurred in the last historic year when actual costs and repayment obligations are subtracted from actual revenues. Adjustment for Power Factor: The customer will be required to maintain a power factor at all points of measurement between 95 percent lagging and 95 percent leading. [FR Doc. 2018–09623 Filed 5–4–18; 8:45 am] BILLING CODE 6450–01–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OPP–2018–0192; FRL–9976–55] Dinotefuran; Receipt of Applications for Emergency Exemptions, Solicitation of Public Comment Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: EPA has received specific exemption requests from the Delaware Department of Agriculture (DDA), the Maryland Department of Agriculture (MDA), the Pennsylvania Department of Agriculture (PDA) and the Virginia Department of Agriculture and Consumer Services (VDACS) to use the insecticide dinotefuran (CAS No. 165252–70–0) to treat up to 58,118 acres of pome and stone fruits to control the SUMMARY: PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 brown marmorated stinkbug. The applicants propose uses which are supported by the Interregional Research Project Number 4 (IR–4) and have been requested in 5 or more previous years, and petitions for tolerances have not yet been submitted to the Agency. Therefore, EPA is soliciting public comment before making the decision whether to grant the exemptions. DATES: Comments must be received on or before May 22, 2018. ADDRESSES: Submit your comments, identified by docket identification (ID) number EPA–HQ–OPP–2018–0192, by one of the following methods: • Federal eRulemaking Portal: https://www.regulations.gov. Follow the online instructions for submitting comments. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. • Mail: OPP Docket, Environmental Protection Agency Docket Center (EPA/ DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC 20460–0001. • Hand Delivery: To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at https:// www.epa.gov/dockets/where-sendcomments-epa-dockets. Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at https:// www.epa.gov/dockets. FOR FURTHER INFORMATION CONTACT: Michael L. Goodis, Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460–0001; main telephone number: (703) 305–7090; email address: RDFRNotices@epa.gov. SUPPLEMENTARY INFORMATION: I. General Information A. Does this action apply to me? You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. The following list of North American Industrial Classification System (NAICS) codes is not intended to be exhaustive, but rather provides a guide to help readers determine whether this document applies to them. Potentially affected entities may include: • Crop production (NAICS code 111). • Animal production (NAICS code 112). • Food manufacturing (NAICS code 311). E:\FR\FM\07MYN1.SGM 07MYN1

Agencies

[Federal Register Volume 83, Number 88 (Monday, May 7, 2018)]
[Notices]
[Pages 20065-20070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09623]


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

DEPARTMENT OF ENERGY

Western Area Power Administration


Olmsted Powerplant Replacement Project-Rate Order No. WAPA-177

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of order concerning final rate for the Olmsted 
Powerplant Replacement Project.

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

SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate 
Order No. WAPA-177 and Rate Schedule F-1, placing the formula rate for 
the Western Area Power Administration (WAPA) Olmsted Powerplant 
Replacement Project (Olmsted) into effect on an interim basis 
(Provisional Formula Rate).

DATES: The Provisional Formula Rate Schedule Olmsted F-1 is effective 
on the first day of the first, full billing period beginning on or 
after June 6, 2018, and will remain in effect through May 6, 2023, 
pending confirmation and

[[Page 20066]]

approval by the Federal Energy Regulatory Commission (FERC) on a final 
basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Brent Osiek, Power Marketing 
Manager, Colorado River Storage Project Management Center, Western Area 
Power Administration, 299 South Main Street, Suite 200, Salt Lake City, 
UT 84111, telephone (801) 524-5495, or Mr. Thomas Hackett, Rates 
Manager, Colorado River Storage Project Management Center, Western Area 
Power Administration, 299 South Main Street, Suite 200, Salt Lake City, 
UT 84111, telephone (801) 524-5503, email [email protected].

SUPPLEMENTARY INFORMATION: Olmsted is located at the mouth of Provo 
Canyon in northern Utah and is a part of the Central Utah Project, a 
participating project of the Colorado River Storage Project (CRSP). In 
order to secure water rights necessary for the Central Utah Project, 
the United States Department of the Interior initiated condemnation 
proceedings in 1987 to acquire the Olmsted facility from Utah Power and 
Light (now PacifiCorp). Under the terms of the condemnation settlement 
agreement, PacifiCorp was allowed to operate the Olmsted facility until 
September 2015. Upon expiration of the settlement agreement, 
replacement construction began due to the age and condition of the 
existing generating plant. The Project is scheduled to begin commercial 
service on August 1, 2018.
    Olmsted is a ``take all, pay all'' project; i.e., the annual 
revenue requirement is not dependent upon the amount of energy 
available each year. Customers with an allocation, as determined by the 
marketing plan process, will receive a proportional share of the energy 
and will annually pay a proportional share of the operation, 
maintenance, and replacement (OM&R) expenses in 12 monthly 
installments. This Notice establishes the initial formula rate for 
Olmsted under Rate Schedule F-1. The initial formula rate is as 
follows: Annual Revenue Requirement = Projected OM&R Costs + Projected 
Interest + Projected Principal Payments  True-Up 
Adjustment.

Legal Authority

    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 the Administrator of WAPA; (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. Federal rules (10 CFR part 903) 
govern DOE procedures for public participation in power rate 
adjustments.
    Under Delegation Order Nos. 00-037.00B and 00-001.00F and in 
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm, 
approve, and place Rate Order No. WAPA-177, Olmsted Powerplant 
Replacement Project, into effect on an interim basis. The new Rate 
Schedule F-1 will be submitted to FERC for confirmation and approval on 
a final basis.

    Dated: April 30, 2018.
Dan Brouillette,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY DEPUTY SECRETARY

In the matter of: Western Area Power Administration, Rate Order for the 
Olmsted Powerplant Replacement Project.
Rate Order No. WAPA-177

ORDER CONFIRMING, APPROVING, AND PLACING THE OLMSTED POWERPLANT 
REPLACEMENT PROJECT FORMULA RATE INTO EFFECT ON AN INTERIM BASIS

    The formula rate for the Olmsted Powerplant Replacement Project 
(Olmsted) set forth in this order is established in accordance with 
section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152). This Act transferred to, and vested in, the Secretary of 
Energy the power marketing functions of the Secretary of the Department 
of the Interior and the Bureau of Reclamation (Reclamation) under the 
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, particularly section 9(c) of the 
Reclamation Act of 1939 (43 U.S.C. 485h(c)); and other acts that 
specifically apply 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 the Administrator of Western Area Power 
Administration (WAPA); (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 the 
Federal Energy Regulatory Commission (FERC). Federal rules (10 CFR part 
903) govern DOE procedures for public participation in power rate 
adjustments.

Acronyms, Terms, and Definitions

    As used in this Rate Order, the following acronyms, terms, and 
definitions apply:
    Allocation: A portion of Olmsted generation assigned a particular 
customer.
    CRSP Act Section 5(c): All revenues collected in connection with 
the operation of the Colorado River Storage Project and participating 
projects shall be credited to the Basin Fund, and shall be available, 
without further appropriation, for (1) defraying the costs of 
operation, maintenance, and replacements of, and emergency expenditures 
for, all facilities of the Colorado River Storage Project and 
participating projects, within such separate limitations as may be 
included in annual appropriation acts; lrovided, that with respect to 
each participating projects, such costs shall be paid from revenues 
received from each such project; (2) payment as required by subsection 
(d) of this section; and (3) payment as required by subsection (e) of 
this section. Revenues credited to the Basin Fund shall not be 
available for appropriation for construction of the units and 
participating projects authorized by or pursuant to this Act.
    Customer: An entity with a contract that is receiving an allocation 
of the Olmsted generation.
    DOE Order RA 6120.2: An order outlining power marketing 
administration financial reporting and ratemaking procedures.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time. Electric energy is expressed in kilowatt-hours.
    Environmental Documentation: Includes the Olmsted Hydroelectric 
Powerplant Replacement Project Final Environmental Assessment, Finding 
of No Significant Impact (FONSI) and the Memorandum of Agreement among 
the CUWCD, Interior, and the Utah State Historical Preservation Officer 
regarding the Olmsted Hydroelectric Powerplant Replacement Project.
    FY: Fiscal year; October 1 to September 30.
    Funding Agreement: Parties to the agreement are United States 
Department of the Interior--Bureau of Reclamation (Reclamation), United 
States Department of the Interior--Central Utah Project Completion Act 
Office, and Central Utah Water Conservancy District (District). The 
agreement describes the sources of funding for the project including 
non-Federal contributed

[[Page 20067]]

funds and provides for the transfer of funds from Reclamation to the 
District.
    Implementation Agreement: Memorandum of Understanding among the 
United States Department of the Interior--Bureau of Reclamation 
(Reclamation), United States Department of the Interior--Central Utah 
Project Completion Act Office, Central Utah Water Conservancy District, 
and Western Area Power Administration. It describes the proposed 
project and responsibilities of the parties.
    Installment: Annual Revenue Requirement billed to customers in 12 
equal monthly payments.
    M&I: Municipal and Industrial water supplies and uses.
    MW: Megawatt--the electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.
    O&M: Operation and Maintenance.
    OM&R: Operation, Maintenance, and Replacements.
    Power: Rate at which electric energy is transferred. Electric power 
is measured by capacity and is commonly expressed in megawatts.
    Provisional Formula Rate: A formula rate confirmed, approved, and 
placed into effect on an interim basis by the Deputy Secretary of 
Energy.
    PRS: Power Repayment Study.
    Revenue Requirement: The revenue required by the PRS to recover 
annual expenses (such as O&M, transmission service expenses, interest, 
and deferred expenses) and repay Federal investments and other assigned 
costs.

Effective Date

    The Provisional Olmsted Formula Rate Schedule F-1 will take effect 
on the first day of the first, full billing period beginning on or 
after June 6, 2018, and will remain in effect through May 6, 2023, 
pending approval by FERC on a final basis or until superseded.

Public Notice and Comment

    WAPA followed the Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing this rate and schedule. The steps WAPA took to involve 
interested parties in the rate process were:
    1. A Federal Register notice (FRN), published on October 12, 2017 
(82 FR 47506) (Proposal FRN), announced the proposed rate for Olmsted 
and began the 90-day public consultation and comment period.
    2. On October 17, 2017, WAPA's CRSP MC emailed an announcement of 
the November 17, 2017, public information and public comment forums to 
power customers of the CRSP MC, CRSP transmission customers, and 
interested parties, along with the Rate Brochure, which contained a 
copy of the published FRN proposal. This information was also posted to 
website: https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.
    3. On November 17, 2017, at 10 a.m. (MST), WAPA held a public 
information forum at the CRSP MC, 299 South Main Street, Suite 200, 
Salt Lake City, Utah. WAPA provided information about the proposed 
Olmsted formula rate. WAPA also answered questions and gave notice that 
more information was available in the customer rate brochure and on the 
website located at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx.
    4. On November 17, 2017, directly following the public information 
forum, WAPA held a public comment forum at the same location to provide 
an opportunity for customers and other interested parties to comment 
for the record. Three verbal comments were received at this forum.
    5. WAPA posted critical dates, customer letters, presentations, 
FRNs, customer brochure, and other information about this rate process 
at the website located at: https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx. Updates to the site were posted as follows:
    October 17, 2017: Olmsted Customer Brochure, Customer Letter for 
Proposed FRN, and the Published FRN--Olmsted Proposed Rates.
    November 15, 2017: Updated Customer Brochure with updated Table 1 
(pg. 7) and Schedule (pg. 16).
    November 17, 2017: Public Information Forum Presentation.
    December 4, 2017: Implementation Agreement, Memorandum of 
Concurrence, Funding Agreement, Table A & Olmsted Costs.
    December 6, 2017: Public Information Forum and Public Comment Forum 
transcripts.
    January 25, 2018: Letter Agreement No: 92-SLC-0208, Olmsted Final 
Environmental Assessment, comment letters received during the public 
comment period.
    6. During the 90-day consultation and comment period that ended on 
January 10, 2018, WAPA received three verbal comments and five comment 
letters. The comments and WAPA's responses are addressed below. All 
comments have been considered in the preparation of this Rate Order.
    Three representatives from the following organizations made verbal 
comments:

Central Utah Water Conservancy District, Utah
Colorado River Energy Distributors Association, Arizona
Utah Associated Municipal Power Systems, Utah

    Five representatives from the following organizations provided 
written comments:

Central Utah Project Completion Act Office, Utah
Central Utah Water Conservancy District, Utah
Colorado River Energy Distributors Association, Arizona
Utah Associated Municipal Power Systems, Utah
Utah Municipal Power Agency

Project Description

    Olmsted is located at the mouth of Provo Canyon in northern Utah 
and is a part of the Central Utah Project, a participating project of 
the Colorado River Storage Project (CRSP). In order to secure water 
rights necessary for the Central Utah Project, the United States 
Department of the Interior initiated condemnation proceedings in 1987 
to acquire the Olmsted facility from Utah Power and Light (now 
PacifiCorp). Under the terms of the condemnation settlement agreement, 
PacifiCorp was allowed to operate the Olmsted facility until September 
2015. Upon expiration of the settlement agreement, replacement 
construction began due to the age and condition of the existing 
generating plant. Olmsted is scheduled to begin commercial service on 
August 1, 2018.
    Olmsted is a ``take all, pay all'' project; i.e., the annual 
revenue requirement is not dependent on the amount of energy available 
each year. Customers with an allocation, as determined by the marketing 
plan process, will receive a proportional share of the energy and will 
annually pay a share of the operation, maintenance, and replacement 
(OM&R) expenses in 12 monthly installments.

Power Repayment Study--Formula Rate

    Repayment criteria are based on applicable laws and legislation as 
well as policies including DOE Order RA 6120.2. To meet the Cost 
Recovery Criteria outlined in DOE Order RA 6120.2, WAPA will prepare a 
Power Repayment Study (PRS) each FY to determine if revenues will be 
sufficient to repay, within the required time, all costs assigned to 
Olmsted.
    Under the provisional rate methodology, the formula rate for 
Olmsted is designed to recover an annual revenue requirement that 
includes power investment repayment,

[[Page 20068]]

interest, O&M, and other expenses within the allowable period. The 
annual revenue requirement is proportionally distributed among all 
customers that have an allocated portion of Olmsted energy production. 
Annual OM&R obligations and related costs for Olmsted will be paid by 
designated revenues deposited in the Basin Fund, pursuant to the 
authority of Section 5(c) of the CRSP Act, attributable to the Central 
Utah Project including the OM&R costs of Olmsted Facilities; OM&R costs 
for the Olmsted Facilities located upstream of Olmsted Facilities; and 
costs associated with preservation of the historic power house that 
will be preserved and maintained as a museum as agreed with the Utah 
Division of State History (State Historic Preservation Office) as part 
of the National Environmental Policy Act (NEPA) process associated with 
Olmsted. The actual and projected investment and OM&R costs requiring 
repayment are shown in Table 1.

                                      Table 1--Projected Investment and OM&R Costs Reimbursable by Power Customers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   FY                          2018            2019            2020            2021            2022            2023            2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Capitalized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Generation/SCADA........................  ..............      $5,815,169  ..............  ..............  ..............  ..............  ..............
Historic Preservation...................  ..............  ..............        $500,000        $500,000        $500,000  ..............  ..............
                                         ---------------------------------------------------------------------------------------------------------------
    Total Capitalized...................  ..............       5,815,169         500,000         500,000         500,000  ..............  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Expensed
--------------------------------------------------------------------------------------------------------------------------------------------------------
Historic Preservation...................         $10,000          10,000          20,000          20,000          20,000         $50,000         $30,000
Powerplant..............................               0         100,000         175,000         180,250         185,658         191,227         196,964
Intake & Pipeline.......................               0          39,054         277,724         352,976         206,070         177,754         342,087
USBR O&M................................          10,000          27,500          10,000          10,000          27,500          10,000          10,000
WAPA O&M................................          10,000          10,000          10,000          10,000          10,000          10,000          10,000
Wheeling Charge.........................          50,000         200,000         200,000         200,000         200,000         200,000         200,000
                                         ---------------------------------------------------------------------------------------------------------------
    Total O&M...........................          80,000         386,554         692,724         773,226         649,227         638,981         789,051
--------------------------------------------------------------------------------------------------------------------------------------------------------

    WAPA will calculate the annual revenue requirement based on 2 years 
of data. The calculation includes the projected costs of the rate 
installment year (future FY) and an adjustment from the last historic 
FY. Annual revenues pay the annual amortized portion of the United 
States' investment in Olmsted with interest and the associated OM&R. 
The adjustment is the surplus or deficit that occurs in the last 
historic year when actual costs and repayment obligations are 
subtracted from actual revenues. This surplus or deficit is combined 
with the projected rate installment year costs to arrive at the revenue 
requirement. To date, all investments are accounted for as Construction 
in Progress (CIP) costs and have not been transferred to plant accounts 
for capitalization. Once transferred, a straight-line amortization 
schedule will be calculated for repayment. Historical financial data 
are only available through FY 2016, and projections are based on the FY 
2019 Reclamation and WAPA work plans received in April 2017, as 
indicated in Table 1.
    WAPA will provide Olmsted power customers with the initial 
installment information at least 30 days prior to initiation of 
service. The FY 2018 annual installment will include all projected FY 
2018 OM&R costs requiring repayment through FY 2018. The FY 2018 
installment amount will be divided by the number of months of service, 
which is anticipated to be 3 months. Thereafter, the annual installment 
amount, billed in 12 monthly payments, will be established in advance 
by WAPA and submitted to Olmsted power customers on or before August 31 
prior to the new FY. The FY 2019 annual installment will include the 
projected FY 2019 OM&R costs in addition to amortized payments on 
capital investments plus interest. The FY 2020 annual installment will 
be similar to FY 2019; however, it will include the FY 2018 final 
financial data and any True-Up between the FY 2018 projected costs and 
the actual FY 2018 costs.

Existing and Provisional Formula Rates

    There is no existing rate for the Project. This Notice establishes 
the initial formula rate for Olmsted under Rate Schedule F-1. The 
initial formula rate is as follows: Annual Revenue Requirement = 
Projected OM&R Costs + Projected Interest + Projected Principal 
Payments  True-Up Adjustment.

Certification of Rates

    WAPA's Administrator certified that the Provisional Formula Rate 
for the Olmsted Powerplant Replacement Project under Rate Schedule F-1 
results in the lowest possible rate consistent with sound business 
principles.

Basis for Rate Development

    The Provisional Formula Rate under Rate Schedule F-1 will provide 
sufficient revenue to pay all annual costs, including interest 
expenses, and repay investments within the allowable periods.

Comments

    WAPA received three verbal comments and five comment letters during 
the public consultation and comment period. The comments expressed have 
been paraphrased, where appropriate, without compromising the meaning 
of the comments. Direct quotes from comment letters are used for 
clarity where necessary.
    Comment: One commenter stated they are contributing up to 15 
million of local tax revenues to support this project and are counting 
on power revenues to reimburse O&M expenses.
    Response: WAPA's rate captures the yearly O&M expenses related to 
power, and those expenses will be included in the rate as will the 
repayment of funds from Section 5(c) of the CRSP Act contributed to the 
project. WAPA acknowledges that the cost of the Olmsted Project is 
being supported by local tax dollars as well from other funding 
sources.
    Comment: Commenter appreciated the information provided by WAPA 
during the public information and

[[Page 20069]]

comment forum as well as on the website.
    Response: WAPA will continue its efforts to provide transparency 
throughout the process.
    Comment: Commenter supports the proposed rate formula, which is 
consistent with the rate structure of the Provo River Project, 
including the true-up provisions to ensure only actual costs are 
attributed to the project and billed to customers.
    Response: WAPA acknowledges the comment.
    Comment: Commenter requested to be kept apprised of any revisions 
to Table A of the implementation agreement and to be notified and 
included in the annual customer/stakeholder meetings due to their 
relationship with Reclamation and WAPA. Commenter suggested that all 
attendees at the forum(s) be notified of the availability of updated 
and additional information.
    Response: A list of updates is posted in the ``Public Notice and 
Comment'' section of this document. WAPA sends out notifications when 
uploading data to the website so all participants have equitable access 
to the same information. Olmsted customers will be invited to annual 
rate meetings to discuss yearly repayment expenses as well as planned 
O&M costs.
    Comment: A commenter stated given the successful customer/agency 
partnership model of Agreement No. 92-SLC-0208, WAPA, Reclamation, and 
CUWCD should consider a similar process/agreement with the ultimate 
allottees of the Olmsted Project as a complement to Olmsted 
Implementation Agreement (Contract WS15-100).
    Response: While this comment is not within the scope of this rate 
process, WAPA has posted a copy of Agreement No. 92-SLC-0208 to the 
Olmsted Rate website located at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx for informational purposes and for 
consideration in future discussions about whether a similar partnership 
agreement would be appropriate.
    Comment: Commenter asked whether the WAPA O&M rate component 
includes appropriate overhead/loading costs to ensure there is no 
subsidy between other WAPA projects and the Olmsted Project.
    Response: In addition to power marketing labor costs, the work plan 
includes depreciation expense (ADEPR), and applies both a headquarters' 
and regional Administrative & General Expense (AGE) overhead burden 
similar to all CRSP MC projects.
    Comment: Commenter questioned the difference between the cost table 
in the Proposal FRN and the one presented at the public information 
forum. Additionally, there was a request to provide additional 
delineation in the Olmsted O&M table including which costs associated 
with the historic preservation of the Olmsted Powerhouse would be 
capitalized versus expensed.
    Response: WAPA used the cost table from the Implementation 
Agreement in the Proposal FRN. WAPA subsequently received an update 
from CUWCD with additional construction costs that increased the total 
estimated project by 12 million and that cost table was introduced at 
the public information forum. However, of the differences noted between 
the tables, only the 300,000 increase in CRSP Act Section 5(c) funding 
is reimbursable by power customers. The capitalized and expensed costs 
for historic preservation are segregated in Table 1.
    Comment: A commenter stated, that: ``The annual revenues projected 
from the power revenue for each annual installment, adjusted as 
provided in the rate order, must be sufficient to reimburse the annual 
O&M expenses for operation of the Olmsted Project and must not be 
decreased on account of other revenue also deposited into the Basin 
Fund. The CUWCD anticipates participating in annual customer meetings 
and coordinating, more often outside those annual customer meetings, 
with the CUPCA office of the Department of Interior, Reclamation Power 
office and WAPA, to provide budget work plans and capital improvement 
and rehabilitation plans that can be used for calculating the most 
accurate annual installments by WAPA.''
    Response: Revenues received from the sale of Olmsted power will be 
deposited in the Basin Fund and identified as being associated with the 
Central Utah Project. Funds are available for the O&M and the annual 
rate update will provide sufficient funding for those activities 
associated with Olmsted operations without negatively affecting funding 
available for other CUP activities. WAPA welcomes continued 
coordination and participation of interested parties in the development 
and application of the Olmsted rate.
    Comment: Commenters questioned how much of the $837,670 is 
associated with historic preservation costs for converting the original 
power plant into a museum, as well as details of that work; the 
specific requirement(s) for preservation; the legal authority for 
including the costs as O&M; whether costs could be capitalized and 
repaid over forty years instead of expensed and repaid over 3 years; 
the intent regarding use of the facility as a museum and if it is 
intended to be accessible by the public.
    Response: Upon review of future cost estimates, it has been 
determined that historic preservation costs, estimated at $500,000 per 
year for FY 2020 thru FY 2022, should be capitalized rather than 
expensed as initially presented at the November 17, 2017, public 
information forum. This is reflected in Table 1 and was posted to the 
website on February 14, 2018. The original Olmsted Powerhouse is listed 
on the National Register of Historic Places and scheduled tours will be 
conducted in the renovated museum. The structural improvements to the 
existing Powerhouse are outlined in Section 5 of the Memorandum of 
Agreement among CUWCD, Interior, and the Utah State Historic 
Preservation Officer that was signed in October 2014 and was posted 
along with the Environmental Assessment (EA) and Finding of No 
Significant Impact (FONSI) to the website on January 25, 2018.
    Comment: Commenters questioned the funding source for the 
historical preservation work and whether non-reimbursable 
appropriations have been or could be requested/obtained in accordance 
with Section 8 of the CRSP Act.
    Response: CRSP Act Section 8 funding will not be available. The 
Bureau of Reclamation's authorized construction cost ceiling for the 
Bonneville Unit M&I System was fully utilized. As a result, Olmsted is 
not authorized for additional construction appropriations.
    Comment: Commenter expressed concern about a statement by WAPA 
during the public information forum that at the end of the contract 
period in 2024, the Olmsted Project may be included into CRSP. 
Customers asked for clarification and an explanation of what options 
WAPA is currently contemplating for Olmsted. Customers oppose any 
changes that would shift costs to CRSP.
    Response: The marketing plan is not within the scope of this 
process. WAPA will seek public comments when it conducts a public 
process for the Post-2024 Marketing Plan prior to the end of the 
current Marketing Plan.

Availability of Information

    Information about this rate schedule, including the customer rate 
brochure, PRSs, comments, letters, memorandums, and other supporting 
materials that were used to develop the Provisional Formula Rates, is 
available for inspection and copying at the Colorado River Storage 
Project

[[Page 20070]]

Management Center, 299 South Main Street, Suite 200, Salt Lake City, 
Utah. Many of these documents are also available on WAPA's website at 
https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.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 
adopted the EA and FONSI prepared by the Central Utah Water District 
for the Olmsted Powerplant Replacement Project. In addition, WAPA has 
determined that the marketing of Olmsted power and the establishment of 
power rates for the marketing of that power are Federal actions that 
are categorically excluded from the preparation of an EA or an 
environmental impact statement. A copy of the categorical exclusion 
determination is available on WAPA's website at https://www.wapa.gov/regions/RM/environment/Pages/CX2017.aspx.

Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no review of this Notice by the 
Office of Management and Budget is required.

Submission to the Federal Energy Regulatory Commission

    The Provisional Formula Rates herein confirmed, approved, and 
placed into effect on an interim basis, together with supporting 
documents, will be submitted to FERC for confirmation and final 
approval.

Order

    In view of the foregoing and under the authority delegated to me, I 
confirm and approve on an interim basis, effective the first full 
billing period on or after June 6, 2018, Rate Schedule F-1 for the 
Olmsted Powerplant Replacement Project of the Western Area Power 
Administration. This rate schedule shall remain in effect on an interim 
basis, pending the Federal Energy Regulatory Commission's confirmation 
and approval of it, or substitute rate, on a final basis through May 6, 
2023, or until superseded.

    Dated: April 30, 2018.

Dan Brouillette,

Deputy Secretary of Energy.

United States Department of Energy Western Area Power Administration

Colorado River Storage Project Management Center Olmsted Powerplant 
Replacement Project

Electric Power Service, (Approved Under Rate Order No. WAPA-177)

Effective

    The first day of the first, full billing period beginning on or 
after June 6, 2018, and extending through May 6, 2023, or until 
superseded by another rate schedule, whichever occurs earlier.

Available

    Within the marketing area served by the Colorado River Storage 
Project; parts of Northern Utah.

Applicable

    To the sale of total plant generation to all customers with an 
Olmsted allocation.

Character

    Alternating current, 60 hertz, three-phase, delivered and 
metered at the voltages and points established by contract.

Formula Rate

    Annual Revenue Requirement = Projected OM&R Costs + Projected 
Interest + Projected Principal Payments  True-Up 
Adjustment.

Adjustments

    True-Up Adjustment: The surplus or deficit that occurred in the 
last historic year when actual costs and repayment obligations are 
subtracted from actual revenues.
    Adjustment for Power Factor: The customer will be required to 
maintain a power factor at all points of measurement between 95 
percent lagging and 95 percent leading.

[FR Doc. 2018-09623 Filed 5-4-18; 8:45 am]
 BILLING CODE 6450-01-P