Integrated System Rate Schedules, 51537-51551 [2019-21040]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices The Commission strongly encourages electronic filing. Please file scoping comments using the Commission’s eFiling system at http://www.ferc.gov/ docs-filing/efiling.asp. Commenters can submit brief comments up to 6,000 characters, without prior registration, using the eComment system at http:// www.ferc.gov/docs-filing/ ecomment.asp. You must include your name and contact information at the end of your comments. For assistance, please contact FERC Online Support at FERCOnlineSupport@ferc.gov, (866) 208–3676 (toll free), or (202) 502–8659 (TTY). In lieu of electronic filing, please send a paper copy to: Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426. The first page of any filing should include docket number P–2814–025. k. This application is not ready for environmental analysis at this time. l. The existing project works consist of: (1) The Society for the Establishment of Useful Manufactures dam, an overflow granite stone gravity structure about 315 feet long, with a maximum height of 15 feet and having a crest elevation of 114.6 feet mean sea level (msl); (2) a reservoir with a surface area of 202 acres and a storage capacity of 1,415 acre-feet at elevation 114.6 feet msl; (3) a forebay inlet structure; (4) a headgate control structure containing three trashracks and three steel gates; (5) three penstocks, each 8.5 feet in diameter and approximately 55 feet long; (6) a powerhouse containing three turbine-generator units with a total rated capacity of 10.95 megawatts; (7) a 37foot-long, 4.16–kilovolt (kV) underground transmission line connecting the powerhouse to a 4.16/ 26.4–kV step-up transformer which in turn is connected to a 26.4–kV transmission grid via an approximately 30-foot-long, 26.4–kV underground transmission line; (8) and appurtenant facilities. The Great Falls Project is operated in a run-of-river mode. For the period 2010 through 2018, the average annual generation at the Great Falls Project was 17,484 megawatt-hours. m. A copy of the application is available for review at the Commission in the Public Reference Room or may be viewed on the Commission’s website at http://www.ferc.gov using the ‘‘eLibrary’’ link. Enter the docket number excluding the last three digits in the docket number field to access the document. For assistance, contact FERC Online Support. A copy is also available for inspection and reproduction at the address in item h above. You may also register online at http:// www.ferc.gov/docs-filing/ VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 esubscription.asp to be notified via email of new filings and issuances related to this or other pending projects. For assistance, contact FERC Online Support. n. Scoping Process. The Commission intends to prepare an environmental assessment (EA) on the projects in accordance with the National Environmental Policy Act. The EA will consider both site-specific and cumulative environmental impacts and reasonable alternatives to the proposed action. Scoping Meetings FERC staff will conduct one agency scoping meeting and one public meeting. The agency scoping meeting will focus on resource agency and nongovernmental organization (NGO) concerns, while the public scoping meeting is primarily for public input. All interested individuals, organizations, and agencies are invited to attend one or both of the meetings, and to assist the staff in identifying the scope of the environmental issues that should be analyzed in the EA. The times and locations of these meetings are as follows: Public Scoping Meeting Date: Wednesday, October 23, 2019. Time: 7:00 p.m. (EDT). Place: Rogers Meeting Center, Second Floor. Address: 32 Spruce Street, Paterson, New Jersey. Agency Scoping Meeting Date: Thursday, October 24, 2019. Time: 2:00 p.m. (EDT). Place: Rogers Meeting Center, Second Floor. Address: 32 Spruce Street, Paterson, New Jersey. Copies of the Scoping Document (SD1) outlining the subject areas to be addressed in the EA were distributed to the parties on the Commission’s mailing list. Copies of the SD1 will be available at the scoping meeting or may be viewed on the web at http:// www.ferc.gov using the ‘‘eLibrary’’ link (see item m above). Environmental Site Review The applicants and FERC staff will conduct a project Environmental Site Review beginning at 9:00 a.m. on October 24, 2019. All interested individuals, organizations, and agencies are invited to attend. All participants should meet at the Great Falls Project facility, located at 72 McBride Avenue, Paterson, New Jersey. All participants are responsible for their own transportation to the site and during the PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 51537 site visit. Anyone with questions about the Environmental Site Review should contact Mr. Matt Nini, Relicensing Project Manager for Eagle Creek, at 973– 998–8171 or matthew.nini@ eaglecreekre.com. Objectives At the scoping meetings, the staff will: (1) Summarize the environmental issues tentatively identified for analysis in the EA; (2) solicit from the meeting participants all available information, especially quantifiable data, on the resources at issue; (3) encourage statements from experts and the public on issues that should be analyzed in the EA, including viewpoints in opposition to, or in support of, the staff’s preliminary views; (4) determine the resource issues to be addressed in the EA; and (5) identify those issues that require a detailed analysis, as well as those issues that do not require a detailed analysis. Procedures The meetings are recorded by a stenographer and become part of the formal record of the Commission proceeding on the projects. Individuals, organizations, and agencies with environmental expertise and concerns are encouraged to attend the meeting and to assist the staff in defining and clarifying the issues to be addressed in the EA. Dated: September 23, 2019. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2019–21141 Filed 9–27–19; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Southwestern Power Administration Integrated System Rate Schedules Southwestern Power Administration, DOE. ACTION: Notice of extension of Integrated System rate schedules. AGENCY: The Assistant Secretary for Electricity has approved and placed into effect on an interim basis Rate Order No. SWPA–74, which extends the following existing Integrated System rate schedules for the Southwestern Power Administration: Rate Schedule P–13A, Wholesale Rates for Hydro Peaking Power; Rate Schedule NFTS–13A, Wholesale Rates for Non-Federal Transmission/Interconnection Facilities Service; Rate Schedule EE–13, Wholesale Rates for Excess Energy. This is an interim rate action effective SUMMARY: E:\FR\FM\30SEN1.SGM 30SEN1 51538 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices October 1, 2019, extending for a period of two years through September 30, 2021. The effective period for the rate schedules specified in Rate Order No. SWPA–74 is October 1, 2019 through September 30, 2021. FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Director, Division of Resources and Rates, Office of Corporate Operations, Southwestern Power Administration, U.S. Department of Energy, One West Third Street, Tulsa, Oklahoma 74103, (918) 595–6684, fritha.ohlson@swpa.gov, or facsimile transmission (918) 595–6684. SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00–037.00B, effective November 19, 2016, and 00– 002.00Q, effective November 1, 2018, and Redelegation Order No. 00– 002.10D, effective June 4, 2019, and pursuant to the implementation authorities in 10 CFR 903.22(h), 10 CFR 903.23(a)(3), and 10 CFR 903.23(b), as amended (84 FR 5347 (Feb. 21, 2019)), Rate Order No. SWPA–74 is approved and placed into effect on an interim basis for the period October 1, 2019, through September 30, 2021, for the following Southwestern Power Administration (Southwestern) Integrated System rate schedules: Rate Schedule P–13A, Wholesale Rates for Hydro Peaking Power Rate Schedule NFTS–13A, Wholesale Rates for Non-Federal Transmission/ Interconnection Facilities Service Rate Schedule EE–13, Wholesale Rates for Excess Energy The Integrated System rate schedules (P–13, NFTS–13 and EE–13) were placed into effect on an interim basis by the Deputy Secretary of Energy and were confirmed and approved on a final basis by the Federal Energy Regulatory Commission (FERC) on January 9, 2014, in Docket No. EF14–1–000 (146 FERC ¶ 62,016) 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 change had no impact on the Integrated System revenue requirements and the revised rate schedule was re-designated NFTS–13A to reflect the change. The NFTS–13A rate schedule was placed into effect on an interim basis by the Deputy Secretary of Energy and was confirmed and approved on a final basis by FERC on March 9, 2017, in Docket No. EF14–1– khammond on DSKJM1Z7X2PROD with NOTICES DATES: VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 001 (158 FERC ¶ 62,182) for the period January 1, 2017 through September 30, 2017. A two-year extension of all Integrated System rate schedules was approved on an interim basis by the Deputy Secretary in Docket No. EF14– 1–002 for the period October 1, 2017 through September 30, 2019. Since the Integrated System rate schedules were placed into effect and subsequently extended, there has been one additional change with no impact on revenue requirements. Southwestern added section 4.2 and a corresponding new 1.9 definition section within the Hydro Peaking Power rate schedule P–13 to provide a single instrument and procedure for establishing and making limited adjustments to the time Southwestern requires its customers to submit Peaking Energy schedules. The revised rate schedule was re-designated P–13A to reflect the change. The P–13A rate schedule change was placed into effect on an interim basis by the Assistant Secretary, effective July 1, 2019, through September 30, 2019, and was confirmed and approved on a final basis by FERC in Docket No. EF14–1– 003 (Aug. 29, 2019). Southwestern’s Administrator completed an annual review of the continuing adequacy of the existing rate schedules for the Integrated System. This review, as presented in the 2019 Integrated System Power Repayment Studies (PRSs), indicated the need for a 0.8 percent revenue increase to continue to satisfy cost recovery criteria. It is Southwestern’s established practice for the Administrator to defer, on a case-bycase basis, revenue adjustments for the Integrated System if such adjustments are within plus or minus two percent of the revenue estimated from the current Integrated System rate schedules. The Administrator has determined it to be prudent to defer the increase and allow the current rate schedules, which are set to expire September 30, 2019, to remain in effect. The deferral of a revenue adjustment provides for rate stability and savings on the administrative cost of implementation, and recognizes that the revenue sufficiency will be re-examined in the following year’s PRSs. Therefore, the Administrator proposes the two-year extension of the Integrated System rate schedules for the period October 1, 2019 through September 30, 2021. The Administrator has followed part 903, subpart A of Title 10 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 informed by notice published in the PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 Federal Register (84 FR 29200 (June 21, 2019)) of the proposed extension of the rate schedules and of the opportunity to provide written comments for a period of 30 days ending July 22, 2019. 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–74. Dated: September 22, 2019. Bruce J. Walker, Assistant Secretary for Electricity. UNITED STATES OF AMERICA DEPARTMENT OF ENERGY ASSISTANT SECRETARY In the matter of: Southwestern Power Administration) Rate Order Integrated System Rate Schedules) No. SWPA–74 ORDER APPROVING EXTENSION OF RATE SCHEDULES ON AN INTERIM BASIS (September 22, 2019) 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 of Southwestern (Administrator) the authority to develop power and transmission rates, 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. By Delegation Order No. 00–002.00Q, the Secretary of Energy delegated to the Under Secretary (of Energy) the authority to confirm, approve, and place into effect on an interim basis rates developed by the Administrator under delegation. By Redelegation Order No. 00–002.10D, the Under Secretary (of Energy) redelegated to the Assistant Secretary for Electricity (Assistant Secretary) the authority to confirm, approve, and place into effect such rates on an interim basis. Pursuant to that delegated authority, the Assistant E:\FR\FM\30SEN1.SGM 30SEN1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices khammond on DSKJM1Z7X2PROD with NOTICES 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, in Docket No. EF14–1– 000 (146 FERC ¶ 62,016), for the period October 1, 2013 through September 30, 2017: Rate Schedule P–13, Wholesale Rates for Hydro Peaking Power Rate Schedule NFTS–13, Wholesale Rates for Non-Federal Transmission/ Interconnection Facilities Service Rate Schedule EE–13, Wholesale Rates 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 was designated NFTS–13A to reflect the change. The following rate schedule was approved on a final basis by FERC on March 9, 2017, in Docket No. EF14–1– 001 (158 FERC ¶ 62,182), effective for the period January 1, 2017 through September 30, 2017. Rate Schedule NFTS–13A, Wholesale Rates for Non-Federal Transmission/ Interconnection Facilities Service A two-year extension of all Integrated System rate schedules was approved on an interim basis by the Deputy Secretary in Docket No. EF14–1–002 for the period October 1, 2017 through September 30, 2019. Subsequently, Southwestern added section 4.2 (together with a new 1.9 definition section) within the Hydro Peaking Power rate schedule P–13 to provide a single instrument and procedure for establishing and making limited adjustments to the time Southwestern requires its customers to submit Peaking Energy schedules. The revised rate schedule was re-designated P–13A to reflect the change. The following rate schedule was placed into effect on an interim basis by the Assistant Secretary, effective July 1, 2019, and was confirmed and approved on a final basis by FERC under Docket No. EF14–1–003 (Aug. 29, 2019). Rate Schedule P–13A, Wholesale Rates for Hydro Peaking Power 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 VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 existing rate schedules. The estimated revised annual revenue identified by the subsequent PRSs since the 2013 PRSs has indicated the need for minimal rate increases. Since the revenue changes reflected by the subsequent PRSs were all within the plus or minus two percent rate adjustment threshold practice established by the Administrator on June 23, 1987, these rate adjustments were deferred in the best interest of the government. However, the existing rate schedules are set to expire on September 30, 2019. Consequently, Southwestern proposed to extend the existing rate schedules for a two-year period ending September 30, 2021, on an interim basis under the implementation authorities noted in 10 CFR 903.22(h) and 10 CFR 903.23(a)(3). Southwestern followed Part 903 of Title 10 of the Code of Federal Regulations, ‘‘Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions’’ 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 21, 2019 (84 FR 29200), with written comments due by July 22, 2019. COMMENTS AND RESPONSES Southwestern received no comments regarding the extension of the 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 2019 Integrated System PRSs indicated the need for an annual revenue increase of 0.8 percent. However, the 2019 rate adjustment falls within Southwestern’s established plus or minus two percent Integrated System rate adjustment threshold practice and was deferred. Southwestern’s 2020 PRSs will determine the appropriate level of revenues needed for the next rate period. In accordance with Delegation Order No. 00–037.00B effective November 19, 2016, and Section 5 of the PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 51539 Flood Control Act of 1944, the Administrator has determined that the existing 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 Under the Administrative Procedure Act (5 U.S.C. 553(d)), publication or service of a substantive rule must 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 Assistant Secretary finds good cause to waive the 30-day delay in the 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 redelegated to me by the Under Secretary (of Energy), I hereby extend on an interim basis, for the period of two years, effective October 1, 2019 through September 30, 2021, the current Integrated System rate schedules: Rate Schedule P–13A, Wholesale Rates for Hydro Peaking Power Rate Schedule NFTS–13A, Wholesale Rates for Non-Federal Transmission/ Interconnection Facilities Service Rate Schedule EE–13, Wholesale Rates for Excess Energy E:\FR\FM\30SEN1.SGM 30SEN1 51540 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices Bruce J. Walker, Assistant Secretary for Electricity. 1.1.2. Reactive Supply and Voltage Control from Generation Sources Service UNITED STATES DEPARTMENT OF ENERGY SOUTHWESTERN POWER ADMINISTRATIONRATE SCHEDULE P-13A1** is provided at transmission facilities in the System of Southwestern to produce or absorb reactive power and to maintain transmission voltages within specific limits. Dated: September 22, 2019 1.1.3. Regulation and Frequency Response Service WHOLESALE RATES FOR HYDRO PEAKING POWER Effective: During the period October 1, 2013, through September 30, 2021**, in accordance with Federal Energy Regulatory Commission (FERC) order issued in Docket No. EF14–1–000 (January 9, 2014), extension approved by the Deputy Secretary in Docket No. EF14–1–002 (September 13, 2017), modification approved by FERC in Docket No. EF14–1–003 (August 29, 2019), and extension approved by the Assistant Secretary in Rate Order No. 74. 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 1.1. 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: khammond on DSKJM1Z7X2PROD with NOTICES 1.1.1. Scheduling, System Control, and Dispatch Service is provided by Southwestern as Balancing Authority Area operator and is in regard to interchange and loadmatch scheduling and related system control and dispatch functions. 1 Supersedes Rate Schedule P–13. ** Extended through September 30, 2021, by approval of Rate Order No. SWPA–74 by the Assistant Secretary for Electricity. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 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-bymoment changes in load and to maintain frequency within a Balancing Authority Area. 1.1.4. 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. 1.1.5. 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. 1.1.6. 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. 1.2. Customer The entity which is utilizing and/or purchasing Federal Power and Federal Energy and services from Southwestern pursuant to this Rate Schedule. 1.3. 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. 1.4. Federal Power and Energy The power and energy provided from the System of Southwestern. PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 1.5. 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. 1.6. Peaking Billing Demand The quantity equal to the Peaking Contract Demand for any month unless otherwise provided by the Customer’s Power Sales Contract. 1.7. 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. 1.8. 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. 1.9. Peaking Energy Schedule Submission Time The time by which Southwestern requires the Customer to submit Peaking Energy schedules to Southwestern as provided for in this Rate Schedule and 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, E:\FR\FM\30SEN1.SGM 30SEN1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 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. 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. 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. 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: 2.1. Hydro Peaking Power Rates, Terms, and Conditions 2.1.1. Monthly Capacity Charge for Hydro Peaking Power $4.50 per kilowatt of Peaking Billing Demand. khammond on DSKJM1Z7X2PROD with NOTICES 2.1.2. 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. 2.1.3. 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: 2.1.3.1. 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; 2.1.3.2. The non-Federal energy transmitted under such secondary service is delivered to the Customer’s point of delivery for Hydro Peaking Power; 2.1.3.3. The Customer commits to provide Real Power Losses associated with such deliveries of non-Federal energy; and 2.1.3.4. Sufficient transfer capability exists between the point of receipt into the System of Southwestern of such VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 2.1.4. Adjustment for Reduction in Service R = (C × K × 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. 2.2. Peaking Energy and Supplemental Peaking Energy Rates, Terms, and Conditions 2.2.1. 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. 2.2.2. Supplemental Energy Charge $0.0094 per kilowatthour of Supplemental Peaking Energy delivered. PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 51541 2.2.3. 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. 2.2.3.1. 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’’). 2.2.3.2. 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 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. E:\FR\FM\30SEN1.SGM 30SEN1 51542 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 2.4.1.4. Energy Imbalance Service: $0.0 per kilowatt for all reservation periods. 2.3. Transformation Service Rates, Terms, and Conditions 2.3.1. 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. 2.3.2. 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. 2.4. Ancillary Services Rates, Terms, and Conditions 2.4.1. Capacity Charges for Ancillary Services 2.4.1.1. 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. 2.4.1.2. 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. 2.4.1.3. 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. khammond on DSKJM1Z7X2PROD with NOTICES Year 2014 2015 2016 2017 2.4.2. 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. 2.4.3. 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. 2.4.4. 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. 2.4.5. 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. The Regulation Purchased Adder will be phased in over a period of four (4) years as follows: Regulation Purchased Adder for the incremental replacement value of energy used from storage ................................ ................................ ................................ and thereafter ........ ⁄ of the ⁄ of the 3⁄4 of the The total 14 12 average average average average 2.4.5.1. Applicability of Regulation Purchased Adder: The replacement annual annual annual annual use use use use of of of of energy energy energy energy from from from from storage storage storage storage × 2014 Purchased Power price. × 2015 Purchased Power price. × 2016 Purchased Power price. × the applicable Purchased Power price. value of the estimated annual use of energy from storage for Regulation and Frequency Response Service shall be recovered by Customers located within 1 The average annual use of energy from storage for Regulation and Frequency Response Service is based on Southwestern studies. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 E:\FR\FM\30SEN1.SGM 30SEN1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices khammond on DSKJM1Z7X2PROD with NOTICES 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. 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 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. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 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. 2.4.6. 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 NonFederal 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. Energy Overrun Penalty 3.2.1. Penalty Charge for Energy Overrun $0.1034 per kilowatthour for each kilowatthour of overrun. 3.2.2. 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. 3.3. 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: 3.1. Capacity Overrun Penalty 3.1.1. 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: Rate per kilowatt Months associated with charge March, April, May, October, November, December ............................................ January, February, June, July, August, September ........................................... $0.15 0.30 3.1.2. 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. PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 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 × (0.95 – LPF) × $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. E:\FR\FM\30SEN1.SGM 30SEN1 EN30SE19.001</GPH> 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 NFTS13A, then it shall not be applied here. 2.4.5.2. 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) × RP Total ] ÷ 12 with the factors defined as follows: 51543 51544 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices If C is negative, then C = zero (0). khammond on DSKJM1Z7X2PROD with NOTICES 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. Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions 4.1. 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 × 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 VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 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: 4.1.1. 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. 4.1.2. 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. 4.1.3. 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-ofmonth loss energy balance to zero (0) megawatthours and the Customer shall be obliged to purchase such energy at the following rates: Months associated with charge March, April, May, October, November, December .................................. January, February, June, July, August, September ........................................ Rate per kilowatthour $0.15 0.30 4.1.4. 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. 4.2. Peaking Energy Schedule Submission Time Southwestern’s Peaking Energy Schedule Submission Time is on or before 2:30 p.m. Central Prevailing Time (CPT), as adjusted by the Administrator, Southwestern, in accordance with Section 4.2.2 in this Rate Schedule, of the day preceding the day for the delivery of Peaking Energy. The Peaking PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 Energy Schedule Submission Time supersedes the Peaking Energy schedule submission time provided in the Customer’s Power Sales Contract, pursuant to Section 4.2.1 of this Rate Schedule. 4.2.1. Applicability of Peaking Energy Schedule Submission Time The Peaking Energy Schedule Submission Time shall apply to the scheduling of Peaking Energy. The Peaking Energy Schedule Submission Time shall not apply to the scheduling of Supplemental Peaking Energy or to Contract Support Arrangements. 4.2.2. Procedure for Adjusting the Peaking Energy Schedule Submission Time Not more than once annually, the Peaking Energy Schedule Submission Time of 2:30 p.m. CPT, as noted in Section 4.2 of this Rate Schedule, may be adjusted by the Administrator, Southwestern, to a time no earlier than 2:00 p.m. CPT and no later than 3:00 p.m. CPT. 4.2.2.1. Determination of Need to Adjust the Peaking Energy Schedule Submission Time: The Administrator, Southwestern, will make a determination on the need to adjust the Peaking Energy Schedule Submission Time based on Southwestern’s studies involving financial analysis, regional energy market conditions, and/or operational considerations. 4.2.2.2. Notification of Peaking Energy Schedule Submission Time Adjustment: The Administrator, Southwestern, will notify customers of the determination to adjust the Peaking Energy Schedule Submission Time in writing no later than 30 calendar days prior to the effective date of the Peaking Energy Schedule Submission Time adjustment. UNITED STATES DEPARTMENT OF ENERGY SOUTHWESTERN POWER ADMINISTRATION RATE SCHEDULE NFTS–13A 1** WHOLESALE RATES FOR NONFEDERAL TRANSMISSION/INTERCONNECTION FACILITIES SERVICE Effective: During the period January 1, 2017, through September 30, 2021*, in accordance with Federal Energy Regulatory Commission (FERC) order issued in Docket No. EF14–1–000 (January 9, 2014), FERC order issued in Docket No. EF14–1–001 (March 9, 1 Supersedes Rate Schedule NFTS–13. through September 30, 2021, by approval of Rate Order No. SWPA–74 by the Assistant Secretary for Electricity. ** Extended E:\FR\FM\30SEN1.SGM 30SEN1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 2017), extension approved by the Deputy Secretary in Docket No. EF14– 1–002 (September 13, 2017), and extension approved by the Assistant Secretary in Rate Order No. 74. 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. 1.1.4. Spinning Operating Reserve Service 1.7. Non-Firm Point-to-Point Transmission 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. Transmission service reserved on a non-firm basis between specific points of receipt and delivery pursuant to a Transmission Service Transaction. 1. Definitions of Terms 1.2. Customer 1.1. 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: The entity which is utilizing and/or purchasing services from Southwestern pursuant to this Rate Schedule. 1.1.1. Scheduling, System Control, and Dispatch Service is provided by Southwestern as Balancing Authority Area operator and is in regard to interchange and loadmatch scheduling and related system control and dispatch functions. 1.1.2. 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. khammond on DSKJM1Z7X2PROD with NOTICES 51545 1.1.3. 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-bymoment changes in load and to maintain frequency within a Balancing Authority Area. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 1.1.5. 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. 1.1.6. 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. 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. 1.4. 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. 1.5. 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. 1.6. 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. PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 1.8. 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. 1.9. 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 asavailable, 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 asavailable, 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. 1.10. 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: 1.10.1. Firm Transmission Service Agreement provides for reserved transmission capacity on a firm basis, for a particular point-to-point delivery path. 1.10.2. 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. E:\FR\FM\30SEN1.SGM 30SEN1 51546 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 1.10.3. 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. 1.10.4. Non-Firm Transmission Service Agreement provides for the Customer to request transmission service on a non-firm basis. 1.11. Service Request The request made under a Transmission Service Agreement through the Southwest Power Pool, Inc. (hereinafter ‘‘SPP’’) Open Access SameTime 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. 1.12. 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. Transmission Service Transaction A Service Request that has been approved by SPP. khammond on DSKJM1Z7X2PROD with NOTICES 1.14. 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 Pointto-Point Transmission Service, Network Integration Transmission Service, and Interconnection Facilities Service month of service or invoiced in accordance with a longer term agreement. 2.1.2. 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. 2.1.3. 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. 2.1.4. Services Associated With Capacity Charge for Firm Point-to-Point Transmission Service The capacity charge for Firm Point-toPoint Transmission Service includes Secondary Transmission Service, but does not include charges for Ancillary Services associated with actual schedules. 2.1.5. Applicability of Capacity Charge for Firm Point-to-Point Transmission Service Capacity charges for Firm Point-toPoint 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. 2.2. Non-Firm Point-to-Point Transmission Service Rates, Terms, and Conditions 2.1. Firm Point-to-Point Transmission Service Rates, Terms, and Conditions 2.2.1. Monthly Capacity Charge for NonFirm Point-to-Point Transmission Service 2.1.1. Monthly Capacity Charge for Firm Point-to-Point Transmission Service $1.48 per kilowatt of transmission capacity reserved in increments of one 80 percent of the monthly capacity charge for Firm Point-to-Point Transmission Service reserved in increments of one month. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 2.2.2. Weekly Capacity Charge for NonFirm Point-to-Point Transmission Service 80 percent of the monthly capacity charge divided by 4 for Firm Point-toPoint Transmission Service reserved in increments of one week. 2.2.3. Daily Capacity Charge for NonFirm Point-to-Point Transmission Service 80 percent of the monthly capacity charge divided by 22 for Firm Point-toPoint Transmission Service reserved in increments of one day. 2.2.4. Hourly Capacity Charge for NonFirm Point-to-Point Transmission Service 80 percent of the monthly capacity charge divided by 352 for Firm Point-toPoint Transmission Service reserved in increments of one hour. 2.2.5. Applicability of Charges for NonFirm Point-to-Point Transmission Service Capacity charges for Non-Firm Pointto-Point Transmission Service are applied to quantities reserved under a Transmission Service Transaction, and do not include charges for Ancillary Services. 2.3. Network Integration Transmission Service Rates, Terms, and Conditions 2.3.1. Annual Revenue Requirement for Network Integration Transmission Service $15,533,800. 2.3.2. Monthly Revenue Requirement for Network Integration Transmission Service $1,294,483. 2.3.3. Net Capacity Available for Network Integration Transmission Service 872,000 kilowatts. 2.3.4. Monthly Capacity Charge for Network Integration Transmission Service $1.48 per kilowatt of Network Load (charge derived from $1,294,483 ÷ 872,000 kilowatts). 2.3.5. 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 E:\FR\FM\30SEN1.SGM 30SEN1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 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. khammond on DSKJM1Z7X2PROD with NOTICES 2.3.6. 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) × 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. 2.4. Interconnection Facilities Service Rates, Terms, and Conditions 2.4.1. Monthly Capacity Charge for Interconnection Facilities Service $1.48 per kilowatt. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 2.4.2. 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. 2.5. Transformation Service Rates, Terms, and Conditions 2.5.1. 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. 2.5.2. 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. 2.6. Ancillary Services Rates, Terms, and Conditions 2.6.1. Capacity Charges for Ancillary Services 2.6.1.1. 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 PO 00000 Frm 00040 Fmt 4703 Sfmt 4703 51547 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 nonfirm transmission service. 2.6.1.2. 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 nonfirm transmission service. 2.6.1.3. 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 nonfirm transmission service plus the Regulation Purchased Adder as defined in Section 2.6.5 of this Rate Schedule. 2.6.1.4. 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. E:\FR\FM\30SEN1.SGM 30SEN1 51548 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 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 nonfirm transmission service. 2.6.1.5. 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 nonfirm transmission service. 2.6.1.6. Energy Imbalance Service: $0.0 per kilowatt for all reservation periods. 2.6.2. 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. Year khammond on DSKJM1Z7X2PROD with NOTICES 2014 2015 2016 2017 2.6.3. 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. 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. 2.6.4. 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 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. The Regulation Purchased Adder will be phased in over a period of four (4) years as follows: 2.6.5. Regulation Purchased Adder Regulation Purchased Adder for the incremental replacement value of energy used from storage ................................ ................................ ................................ and thereafter ........ ⁄ of the ⁄ of the 3⁄4 of the The total 14 12 average average average average 2.6.5.1. Applicability of Regulation Purchased Adder: The replacement value of the estimated annual use of energy from storage for Regulation and annual annual annual annual use use use use of of of of energy energy energy energy from from from from storage storage storage storage × 2014 Purchased Power price. × 2015 Purchased Power price. × 2016 Purchased Power price. × the applicable Purchased Power price. 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. 1 The average annual use of energy from storage for Regulation and Frequency Response Service is based on Southwestern studies. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 E:\FR\FM\30SEN1.SGM 30SEN1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 51549 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. Rate per kilowatt khammond on DSKJM1Z7X2PROD with NOTICES LCustomer = 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. LTotal = The sum of all LCustomer factors for all Customers that were inside Southwestern’s Balancing Authority Area at the beginning of the previous calendar year in MW. RPTotal = 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 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. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 2.6.6. 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: PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 Months associated with charge March, April, May, October, November, December ............................................ January, February, June, July, August, September ........................................... $0.15 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 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: 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. E:\FR\FM\30SEN1.SGM 30SEN1 EN30SE19.002</GPH> If the Regulation Purchased Adder is determined and applied under Southwestern’s Rate Schedule P–13, then it shall not be applied here. 2.6.5.2. 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: [(LCustomer ÷ LTotal) × RPTotal] ÷ 12 with the factors defined as follows: 51550 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 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 × (0.95 ¥ LPF) × $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). khammond on DSKJM1Z7X2PROD with NOTICES 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. VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 4. Non-Federal Transmission/ Interconnection Facilities Service Miscellaneous Rates, Terms, and Conditions 4.1. 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 × 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: 4.1.1. 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. 4.1.2. 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. 4.1.3. 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-ofmonth loss energy balance to zero (0) megawatthours and the Customer shall be obliged to purchase such energy at the following rates: PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 Months associated with charge Rate per kilowatthour March, April, May, October, November, December .................................. January, February, June, July, August, September ........................................ $0.15 0.30 4.1.4. 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 EE–13 1** WHOLESALE RATES FOR EXCESS ENERGY Effective: During the period October 1, 2013, through September 30, 2021**, in accordance with Federal Energy Regulatory Commission (FERC) order issued in Docket No. EF14–1–000 (January 9, 2014), extension approved by the Deputy Secretary in Docket No. EF14–1–002 (September 13, 2017), and extension approved by the Assistant Secretary in Rate Order No. 74. 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 Supersedes Rate Schedule EE–11. ** Extended through September 30, 2021, by approval of Rate Order No. SWPA–74 by the Assistant Secretary for Electricity. E:\FR\FM\30SEN1.SGM 30SEN1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Notices 1.2. Transmission and Related Ancillary Services Rate Schedule SRD–15, Wholesale Rates for Hydro Power and Energy Transmission service for the delivery of Excess Energy shall be the sole responsibility of such customer purchasing Excess Energy. The Sam Rayburn Dam rate schedule (SRD–15) was placed into effect on an interim basis by the Deputy Secretary and was confirmed and approved on a final basis by the Federal Energy Regulatory Commission (FERC) on June 30, 2016, in Docket No. EF16–2–000 (155 FERC ¶ 62,254) for the period January 1, 2016 through September 30, 2019. The 2019 Sam Rayburn Dam power repayment studies (PRSs) indicated the need for a 1.7 percent revenue increase to continue to satisfy cost recovery criteria. It is Southwestern’s established practice for the Administrator to defer, on a case by case basis, revenue adjustments for an isolated project if such adjustments are within plus or minus five percent of the revenue estimated from the current rate schedule. The Administrator determined it to be prudent to defer the increase and allow the current rate schedule, which is set to expire September 30, 2019, to remain in effect. The deferral of a revenue adjustment provides for rate stability and savings on the administrative cost of implementation, and recognizes that the revenue sufficiency will be re-examined in the following year’s PRSs. Therefore, the Administrator proposes the two-year extension of the Sam Rayburn Dam rate schedule for the period October 1, 2019 through September 30, 2021. The Administrator has followed part 903, subpart A of Title 10 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 schedule. The public was advised by notice published in the Federal Register (84 FR 29200 (June 21, 2019)) of the proposed extension of the rate schedules and of the opportunity to provide written comments for a period of 30 days ending July 22, 2019. No comments were received. Information regarding the extension of this rate schedule, including the rate schedule 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–75. 1.3. Excess Energy Charge $0.0094 per kilowatthour of Excess Energy delivered. [FR Doc. 2019–21040 Filed 9–27–19; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF ENERGY Southwestern Power Administration Sam Rayburn Dam Rate Schedule Southwestern Power Administration, DOE. ACTION: Notice of extension of Sam Rayburn Dam rate schedule. AGENCY: The Assistant Secretary for Electricity has approved and placed into effect on an interim basis Rate Order No. SWPA–75, which extends the following existing Sam Rayburn Dam rate schedule for the Southwestern Power Administration: Rate Schedule SRD–15, Wholesale Rates for Hydro Power and Energy. This is an interim rate action effective October 1, 2019, extending for a period of two years through September 30, 2021. DATES: The effective period for the rate schedule specified in Rate Order No. SWPA–75 is October 1, 2019 through September 30, 2021. FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Director, Division of Resources and Rates, Office of Corporate Operations, Southwestern Power Administration, U.S. Department of Energy, One West Third Street, Tulsa, Oklahoma 74103, (918) 595–6684, fritha.ohlson@swpa.gov, or facsimile transmission (918) 595–6684. SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00–037.00B, effective November 19, 2016, and 00– 002.00Q, effective November 1, 2018, and Redelegation Order No. 00– 002.10D, effective June 4, 2019, and pursuant to the implementation authorities in 10 CFR 903.22(h), 10 CFR 903.23(a)(3), and 10 CFR 903.23(b), as amended (84 FR 5347 (Feb. 21, 2019)), Rate Order No. SWPA–75 is approved and placed into effect on an interim basis for the period October 1, 2019 through September 30, 2021, for the following Southwestern Power Administration (Southwestern) Sam Rayburn Dam rate schedule: khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 19:16 Sep 27, 2019 Jkt 247001 PO 00000 51551 Dated: September 22, 2019. Bruce J. Walker, Assistant Secretary for Electricity. UNITED STATES OF AMERICA DEPARTMENT OF ENERGY ASSISTANT SECRETARY In the matter of: Southwestern Power Administration, Sam Rayburn Dam Rate Schedule Rate Order No. SWPA–75 ORDER APPROVING EXTENSION OF RATE SCHEDULE ON AN INTERIM BASIS ( September 22, 2019 ) 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 of Southwestern (Administrator) the authority to develop power and transmission rates, 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. By Delegation Order No. 00-002.00Q, the Secretary of Energy delegated to the Under Secretary (of Energy) the authority to confirm, approve, and place into effect on an interim basis rates developed by the Administrator under delegation. By Redelegation Order No. 00-002.10D, the Under Secretary (of Energy) redelegated to the Assistant Secretary for Electricity (Assistant Secretary) the authority to confirm, approve, and place into effect such rates on an interim basis. Pursuant to that delegated authority, the Assistant Secretary has issued this interim rate order. BACKGROUND The following rate schedule for Sam Rayburn Dam was confirmed and approved on a final basis by FERC on June 30, 2016 in Docket No. EF16–2-000 (155 FERC ¶ 62,254) for the period January 1, 2016 through September 30, 2019. Rate Schedule SRD-15, Wholesale Rates for Hydro Power and Energy DISCUSSION The existing Sam Rayburn Dam rate schedule is based on the 2015 power Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\30SEN1.SGM 30SEN1

Agencies

[Federal Register Volume 84, Number 189 (Monday, September 30, 2019)]
[Notices]
[Pages 51537-51551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21040]


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

DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Rate Schedules

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of extension of Integrated System rate schedules.

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

SUMMARY: The Assistant Secretary for Electricity has approved and 
placed into effect on an interim basis Rate Order No. SWPA-74, which 
extends the following existing Integrated System rate schedules for the 
Southwestern Power Administration: Rate Schedule P-13A, Wholesale Rates 
for Hydro Peaking Power; Rate Schedule NFTS-13A, Wholesale Rates for 
Non-Federal Transmission/Interconnection Facilities Service; Rate 
Schedule EE-13, Wholesale Rates for Excess Energy. This is an interim 
rate action effective

[[Page 51538]]

October 1, 2019, extending for a period of two years through September 
30, 2021.

DATES: The effective period for the rate schedules specified in Rate 
Order No. SWPA-74 is October 1, 2019 through September 30, 2021.

FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Director, Division 
of Resources and Rates, Office of Corporate Operations, Southwestern 
Power Administration, U.S. Department of Energy, One West Third Street, 
Tulsa, Oklahoma 74103, (918) 595-6684, [email protected], or 
facsimile transmission (918) 595-6684.

SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00-
037.00B, effective November 19, 2016, and 00-002.00Q, effective 
November 1, 2018, and Redelegation Order No. 00-002.10D, effective June 
4, 2019, and pursuant to the implementation authorities in 10 CFR 
903.22(h), 10 CFR 903.23(a)(3), and 10 CFR 903.23(b), as amended (84 FR 
5347 (Feb. 21, 2019)), Rate Order No. SWPA-74 is approved and placed 
into effect on an interim basis for the period October 1, 2019, through 
September 30, 2021, for the following Southwestern Power Administration 
(Southwestern) Integrated System rate schedules:

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

    The Integrated System rate schedules (P-13, NFTS-13 and EE-13) were 
placed into effect on an interim basis by the Deputy Secretary of 
Energy and were confirmed and approved on a final basis by the Federal 
Energy Regulatory Commission (FERC) on January 9, 2014, in Docket No. 
EF14-1-000 (146 FERC ] 62,016) 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 change had no impact on the Integrated System revenue 
requirements and the revised rate schedule was re-designated NFTS-13A 
to reflect the change. The NFTS-13A rate schedule was placed into 
effect on an interim basis by the Deputy Secretary of Energy and was 
confirmed and approved on a final basis by FERC on March 9, 2017, in 
Docket No. EF14-1-001 (158 FERC ] 62,182) for the period January 1, 
2017 through September 30, 2017. A two-year extension of all Integrated 
System rate schedules was approved on an interim basis by the Deputy 
Secretary in Docket No. EF14-1-002 for the period October 1, 2017 
through September 30, 2019. Since the Integrated System rate schedules 
were placed into effect and subsequently extended, there has been one 
additional change with no impact on revenue requirements. Southwestern 
added section 4.2 and a corresponding new 1.9 definition section within 
the Hydro Peaking Power rate schedule P-13 to provide a single 
instrument and procedure for establishing and making limited 
adjustments to the time Southwestern requires its customers to submit 
Peaking Energy schedules. The revised rate schedule was re-designated 
P-13A to reflect the change. The P-13A rate schedule change was placed 
into effect on an interim basis by the Assistant Secretary, effective 
July 1, 2019, through September 30, 2019, and was confirmed and 
approved on a final basis by FERC in Docket No. EF14-1-003 (Aug. 29, 
2019).
    Southwestern's Administrator completed an annual review of the 
continuing adequacy of the existing rate schedules for the Integrated 
System. This review, as presented in the 2019 Integrated System Power 
Repayment Studies (PRSs), indicated the need for a 0.8 percent revenue 
increase to continue to satisfy cost recovery criteria. It is 
Southwestern's established practice for the Administrator to defer, on 
a case-by-case basis, revenue adjustments for the Integrated System if 
such adjustments are within plus or minus two percent of the revenue 
estimated from the current Integrated System rate schedules. The 
Administrator has determined it to be prudent to defer the increase and 
allow the current rate schedules, which are set to expire September 30, 
2019, to remain in effect.
    The deferral of a revenue adjustment provides for rate stability 
and savings on the administrative cost of implementation, and 
recognizes that the revenue sufficiency will be re-examined in the 
following year's PRSs. Therefore, the Administrator proposes the two-
year extension of the Integrated System rate schedules for the period 
October 1, 2019 through September 30, 2021.
    The Administrator has followed part 903, subpart A of Title 10 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 informed by 
notice published in the Federal Register (84 FR 29200 (June 21, 2019)) 
of the proposed extension of the rate schedules and of the opportunity 
to provide written comments for a period of 30 days ending July 22, 
2019. 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-74.

    Dated: September 22, 2019.
Bruce J. Walker,
Assistant Secretary for Electricity.

UNITED STATES OF AMERICA DEPARTMENT OF ENERGY ASSISTANT SECRETARY

In the matter of:
    Southwestern Power Administration) Rate Order
    Integrated System Rate Schedules) No. SWPA-74

ORDER APPROVING EXTENSION OF RATE SCHEDULES ON AN INTERIM BASIS

(September 22, 2019)
    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 of Southwestern 
(Administrator) the authority to develop power and transmission rates, 
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. By 
Delegation Order No. 00-002.00Q, the Secretary of Energy delegated to 
the Under Secretary (of Energy) the authority to confirm, approve, and 
place into effect on an interim basis rates developed by the 
Administrator under delegation. By Redelegation Order No. 00-002.10D, 
the Under Secretary (of Energy) redelegated to the Assistant Secretary 
for Electricity (Assistant Secretary) the authority to confirm, 
approve, and place into effect such rates on an interim basis. Pursuant 
to that delegated authority, the Assistant

[[Page 51539]]

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, in 
Docket No. EF14-1-000 (146 FERC ] 62,016), for the period October 1, 
2013 through September 30, 2017:

Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13, Wholesale Rates for Non-Federal Transmission/
Interconnection Facilities Service
Rate Schedule EE-13, Wholesale Rates 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 was designated NFTS-13A to reflect the 
change. The following rate schedule was approved on a final basis by 
FERC on March 9, 2017, in Docket No. EF14-1-001 (158 FERC ] 62,182), 
effective for the period January 1, 2017 through September 30, 2017.

Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission/ 
Interconnection Facilities Service

    A two-year extension of all Integrated System rate schedules was 
approved on an interim basis by the Deputy Secretary in Docket No. 
EF14-1-002 for the period October 1, 2017 through September 30, 2019. 
Subsequently, Southwestern added section 4.2 (together with a new 1.9 
definition section) within the Hydro Peaking Power rate schedule P-13 
to provide a single instrument and procedure for establishing and 
making limited adjustments to the time Southwestern requires its 
customers to submit Peaking Energy schedules. The revised rate schedule 
was re-designated P-13A to reflect the change. The following rate 
schedule was placed into effect on an interim basis by the Assistant 
Secretary, effective July 1, 2019, and was confirmed and approved on a 
final basis by FERC under Docket No. EF14-1-003 (Aug. 29, 2019).

Rate Schedule P-13A, Wholesale Rates for Hydro Peaking Power

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 
subsequent PRSs since the 2013 PRSs has indicated the need for minimal 
rate increases. Since the revenue changes reflected by the subsequent 
PRSs were all within the plus or minus two percent rate adjustment 
threshold practice established by the Administrator on June 23, 1987, 
these rate adjustments were deferred in the best interest of the 
government.
    However, the existing rate schedules are set to expire on September 
30, 2019. Consequently, Southwestern proposed to extend the existing 
rate schedules for a two-year period ending September 30, 2021, on an 
interim basis under the implementation authorities noted in 10 CFR 
903.22(h) and 10 CFR 903.23(a)(3).
    Southwestern followed Part 903 of Title 10 of the Code of Federal 
Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' 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 21, 2019 (84 FR 29200), with written 
comments due by July 22, 2019.

COMMENTS AND RESPONSES

    Southwestern received no comments regarding the extension of the 
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 2019 Integrated System 
PRSs indicated the need for an annual revenue increase of 0.8 percent. 
However, the 2019 rate adjustment falls within Southwestern's 
established plus or minus two percent Integrated System rate adjustment 
threshold practice and was deferred.
    Southwestern's 2020 PRSs will determine the appropriate level of 
revenues needed for the next rate period. In accordance with Delegation 
Order No. 00-037.00B effective November 19, 2016, and Section 5 of the 
Flood Control Act of 1944, the Administrator has determined that the 
existing 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

    Under the Administrative Procedure Act (5 U.S.C. 553(d)), 
publication or service of a substantive rule must 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 Assistant Secretary finds good cause to waive the 30-day 
delay in the 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 redelegated 
to me by the Under Secretary (of Energy), I hereby extend on an interim 
basis, for the period of two years, effective October 1, 2019 through 
September 30, 2021, the current Integrated System rate schedules:

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

[[Page 51540]]

Dated: September 22, 2019
Bruce J. Walker, Assistant Secretary for Electricity.

UNITED STATES DEPARTMENT OF ENERGY SOUTHWESTERN POWER ADMINISTRATION 
RATE SCHEDULE P-13A\1\**
---------------------------------------------------------------------------

    \1\ Supersedes Rate Schedule P-13.
    ** Extended through September 30, 2021, by approval of Rate 
Order No. SWPA-74 by the Assistant Secretary for Electricity.
---------------------------------------------------------------------------

WHOLESALE RATES FOR HYDRO PEAKING POWER

    Effective: During the period October 1, 2013, through September 30, 
2021**, in accordance with Federal Energy Regulatory Commission (FERC) 
order issued in Docket No. EF14-1-000 (January 9, 2014), extension 
approved by the Deputy Secretary in Docket No. EF14-1-002 (September 
13, 2017), modification approved by FERC in Docket No. EF14-1-003 
(August 29, 2019), and extension approved by the Assistant Secretary in 
Rate Order No. 74.
    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

1.1. 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:
1.1.1. 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.
1.1.2. 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.
1.1.3. 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.
1.1.4. 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.
1.1.5. 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.
1.1.6. 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.

1.2. Customer

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

1.3. 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.

1.4. Federal Power and Energy

    The power and energy provided from the System of Southwestern.

1.5. 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.

1.6. Peaking Billing Demand

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

1.7. 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.

1.8. 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.

1.9. Peaking Energy Schedule Submission Time

    The time by which Southwestern requires the Customer to submit 
Peaking Energy schedules to Southwestern as provided for in this Rate 
Schedule and 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,

[[Page 51541]]

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.

2.1. Hydro Peaking Power Rates, Terms, and Conditions

2.1.1. Monthly Capacity Charge for Hydro Peaking Power
    $4.50 per kilowatt of Peaking Billing Demand.
2.1.2. 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.
2.1.3. 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:
    2.1.3.1. 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;
    2.1.3.2. The non-Federal energy transmitted under such secondary 
service is delivered to the Customer's point of delivery for Hydro 
Peaking Power;
    2.1.3.3. The Customer commits to provide Real Power Losses 
associated with such deliveries of non-Federal energy; and
    2.1.3.4. 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.
2.1.4. 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.

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

2.2.1. 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.
2.2.2. Supplemental Energy Charge
    $0.0094 per kilowatthour of Supplemental Peaking Energy delivered.
2.2.3. 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.
    2.2.3.1. 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'').
    2.2.3.2. 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 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.

[[Page 51542]]

2.3. Transformation Service Rates, Terms, and Conditions

2.3.1. 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.
2.3.2. 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.

2.4. Ancillary Services Rates, Terms, and Conditions

2.4.1. Capacity Charges for Ancillary Services
    2.4.1.1. 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.
    2.4.1.2. 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.
    2.4.1.3. 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.
    2.4.1.4. Energy Imbalance Service: $0.0 per kilowatt for all 
reservation periods.
2.4.2. 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.
2.4.3. 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.
2.4.4. 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.
2.4.5. 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.
---------------------------------------------------------------------------

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

------------------------------------------------------------------------
                                   Regulation Purchased Adder for the
             Year                incremental replacement 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.
------------------------------------------------------------------------

    2.4.5.1. 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

[[Page 51543]]

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-13A, then it shall not be applied 
here.
    2.4.5.2. 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
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

(3) The Customer's highest rate of Scheduled Imports \2\ during the 
previous calendar year.
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.
2.4.6. 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

3.1. Capacity Overrun Penalty

3.1.1. 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:

------------------------------------------------------------------------
                                                                Rate per
                Months associated with charge                   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 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.

3.2. Energy Overrun Penalty

3.2.1. Penalty Charge for Energy Overrun
    $0.1034 per kilowatthour for each kilowatthour of overrun.
3.2.2. 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.

3.3. 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] TN30SE19.001

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.

[[Page 51544]]

    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. Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions

4.1. 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:
    4.1.1. 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.
    4.1.2. 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.
    4.1.3. 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
------------------------------------------------------------------------

    4.1.4. 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.

4.2. Peaking Energy Schedule Submission Time

    Southwestern's Peaking Energy Schedule Submission Time is on or 
before 2:30 p.m. Central Prevailing Time (CPT), as adjusted by the 
Administrator, Southwestern, in accordance with Section 4.2.2 in this 
Rate Schedule, of the day preceding the day for the delivery of Peaking 
Energy. The Peaking Energy Schedule Submission Time supersedes the 
Peaking Energy schedule submission time provided in the Customer's 
Power Sales Contract, pursuant to Section 4.2.1 of this Rate Schedule.
4.2.1. Applicability of Peaking Energy Schedule Submission Time
    The Peaking Energy Schedule Submission Time shall apply to the 
scheduling of Peaking Energy. The Peaking Energy Schedule Submission 
Time shall not apply to the scheduling of Supplemental Peaking Energy 
or to Contract Support Arrangements.
4.2.2. Procedure for Adjusting the Peaking Energy Schedule Submission 
Time
    Not more than once annually, the Peaking Energy Schedule Submission 
Time of 2:30 p.m. CPT, as noted in Section 4.2 of this Rate Schedule, 
may be adjusted by the Administrator, Southwestern, to a time no 
earlier than 2:00 p.m. CPT and no later than 3:00 p.m. CPT.
    4.2.2.1. Determination of Need to Adjust the Peaking Energy 
Schedule Submission Time: The Administrator, Southwestern, will make a 
determination on the need to adjust the Peaking Energy Schedule 
Submission Time based on Southwestern's studies involving financial 
analysis, regional energy market conditions, and/or operational 
considerations.
    4.2.2.2. Notification of Peaking Energy Schedule Submission Time 
Adjustment: The Administrator, Southwestern, will notify customers of 
the determination to adjust the Peaking Energy Schedule Submission Time 
in writing no later than 30 calendar days prior to the effective date 
of the Peaking Energy Schedule Submission Time adjustment.

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE NFTS-13A \1\**

    \1\ Supersedes Rate Schedule NFTS-13.
    \**\ Extended through September 30, 2021, by approval of Rate 
Order No. SWPA-74 by the Assistant Secretary for Electricity.
---------------------------------------------------------------------------

WHOLESALE RATES FOR NON-FEDERAL

TRANSMISSION/INTERCONNECTION FACILITIES SERVICE

    Effective: During the period January 1, 2017, through September 30, 
2021*, in accordance with Federal Energy Regulatory Commission (FERC) 
order issued in Docket No. EF14-1-000 (January 9, 2014), FERC order 
issued in Docket No. EF14-1-001 (March 9,

[[Page 51545]]

2017), extension approved by the Deputy Secretary in Docket No. EF14-1-
002 (September 13, 2017), and extension approved by the Assistant 
Secretary in Rate Order No. 74.
    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

1.1. 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:
1.1.1. 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.
1.1.2. 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.
1.1.3. 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.
1.1.4. 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.
1.1.5. 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.
1.1.6. 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.

1.2. Customer

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

1.3. 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.

1.4. 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.

1.5. 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.

1.6. 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.

1.7. 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.

1.8. 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.

1.9. 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.

1.10. 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:
1.10.1. Firm Transmission Service Agreement
provides for reserved transmission capacity on a firm basis, for a 
particular point-to-point delivery path.
1.10.2. 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.

[[Page 51546]]

1.10.3. 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.
1.10.4. Non-Firm Transmission Service Agreement
provides for the Customer to request transmission service on a non-firm 
basis.

1.11. 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.

1.12. 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. Transmission Service Transaction

    A Service Request that has been approved by SPP.

1.14. 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

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

2.1.1. 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.
2.1.2. 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.
2.1.3. 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.
2.1.4. 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.
2.1.5. 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.

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

2.2.1. 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.
2.2.2. 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.
2.2.3. 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.
2.2.4. 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.
2.2.5. 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.

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

2.3.1. Annual Revenue Requirement for Network Integration Transmission 
Service
    $15,533,800.
2.3.2. Monthly Revenue Requirement for Network Integration Transmission 
Service
    $1,294,483.
2.3.3. Net Capacity Available for Network Integration Transmission 
Service
    872,000 kilowatts.
2.3.4. Monthly Capacity Charge for Network Integration Transmission 
Service
    $1.48 per kilowatt of Network Load (charge derived from $1,294,483 
/ 872,000 kilowatts).
2.3.5. 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

[[Page 51547]]

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.
2.3.6. 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.

2.4. Interconnection Facilities Service Rates, Terms, and Conditions

2.4.1. Monthly Capacity Charge for Interconnection Facilities Service
    $1.48 per kilowatt.
2.4.2. 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.

2.5. Transformation Service Rates, Terms, and Conditions

2.5.1. 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.
2.5.2. 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.

2.6. Ancillary Services Rates, Terms, and Conditions

2.6.1. Capacity Charges for Ancillary Services
    2.6.1.1. 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.
    2.6.1.2. 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.
    2.6.1.3. 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.
    2.6.1.4. 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.

[[Page 51548]]

    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.
    2.6.1.5. 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.
    2.6.1.6. Energy Imbalance Service: $0.0 per kilowatt for all 
reservation periods.
2.6.2. 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.
2.6.3. 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.
2.6.4. 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.
2.6.5. 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.
---------------------------------------------------------------------------

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

------------------------------------------------------------------------
                                   Regulation Purchased Adder for the
             Year                incremental replacement 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.
------------------------------------------------------------------------

    2.6.5.1. 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.

[[Page 51549]]

    If the Regulation Purchased Adder is determined and applied under 
Southwestern's Rate Schedule P-13, then it shall not be applied here.
    2.6.5.2. 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:

[(LCustomer / LTotal) x RPTotal] / 12

with the factors defined as follows:

LCustomer = 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
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

(3) The Customer's highest rate of Scheduled Imports \2\ during the 
previous calendar year.
LTotal = The sum of all LCustomer factors for 
all Customers that were inside Southwestern's Balancing Authority 
Area at the beginning of the previous calendar year in MW.
RPTotal = 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.
2.6.6. 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:

------------------------------------------------------------------------
                                                                Rate per
                Months associated with charge                   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 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] TN30SE19.002

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.

[[Page 51550]]

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

4.1. 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:
    4.1.1. 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.
    4.1.2. 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.
    4.1.3. 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
------------------------------------------------------------------------

    4.1.4. 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.
---------------------------------------------------------------------------

    \1\ Supersedes Rate Schedule EE-11.
    ** Extended through September 30, 2021, by approval of Rate 
Order No. SWPA-74 by the Assistant Secretary for Electricity.
---------------------------------------------------------------------------

UNITED STATES DEPARTMENT OF ENERGY

SOUTHWESTERN POWER ADMINISTRATION

RATE SCHEDULE EE-13 \1\**

WHOLESALE RATES FOR EXCESS ENERGY

    Effective: During the period October 1, 2013, through September 30, 
2021**, in accordance with Federal Energy Regulatory Commission (FERC) 
order issued in Docket No. EF14-1-000 (January 9, 2014), extension 
approved by the Deputy Secretary in Docket No. EF14-1-002 (September 
13, 2017), and extension approved by the Assistant Secretary in Rate 
Order No. 74.
    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.

[[Page 51551]]

1.2. Transmission and Related Ancillary Services

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

1.3. Excess Energy Charge

    $0.0094 per kilowatthour of Excess Energy delivered.

[FR Doc. 2019-21040 Filed 9-27-19; 8:45 am]
BILLING CODE 6450-01-P