Proposed Salt Lake City Area Integrated Projects Firm Power Rate and Colorado River Storage Project Transmission and Ancillary Services Rates-Rate Order No. WAPA-190, 3367-3370 [2020-00890]
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Federal Register / Vol. 85, No. 13 / Tuesday, January 21, 2020 / Notices
Filed Date: 1/10/20.
Accession Number: 20200110–5225.
Comments Due: 5 p.m. ET 1/21/20.
Docket Numbers: ER20–695–001.
Applicants: Tri-State Generation and
Transmission Association, Inc.
Description: Tariff Amendment:
Amendment to Rate Schedule Nos. 121
and 129 to be effective 3/23/2020.
Filed Date: 1/10/20.
Accession Number: 20200110–5234.
Comments Due: 5 p.m. ET 1/21/20.
Docket Numbers: ER20–772–000.
Applicants: Tri-State Generation and
Transmission Association, Inc.
Description: Tariff Cancellation:
Notice of Cancellation of Rate Schedule
Nos. 172 and 173 to be effective 3/23/
2020.
Filed Date: 1/10/20.
Accession Number: 20200110–5237.
Comments Due: 5 p.m. ET 1/31/20.
Docket Numbers: ER20–773–000.
Applicants: Duke Energy Progress,
LLC.
Description: Notice of Cancellation of
Service Agreements (Nos. 75, et al.) of
Duke Energy Progress, LLC.
Filed Date: 1/10/20.
Accession Number: 20200110–5256.
Comments Due: 5 p.m. ET 1/31/20.
Docket Numbers: ER20–774–000.
Applicants: Tucson Electric Power
Company.
Description: 205(d) Rate Filing:
Concurrence to CAISO RS No. 6046 to
be effective 1/14/2020.
Filed Date: 1/13/20.
Accession Number: 20200113–5050.
Comments Due: 5 p.m. ET 2/3/20.
Docket Numbers: ER20–775–000.
Applicants: Southwest Power Pool,
Inc.
Description: 205(d) Rate Filing: 3618
Little Blue Wind, LLC GIA to be
effective 12/19/2019.
Filed Date: 1/13/20.
Accession Number: 20200113–5063.
Comments Due: 5 p.m. ET 2/3/20.
Docket Numbers: ER20–776–000.
Applicants: Appalachian Power
Company, PJM Interconnection, L.L.C.
Description: 205(d) Rate Filing: PJM
Transmission Owners submit revisions
to OATT, Sch. 12 re: Economic Projects
to be effective 3/13/2020.
Filed Date: 1/13/20.
Accession Number: 20200113–5140.
Comments Due: 5 p.m. ET 2/3/20.
The filings are accessible in the
Commission’s eLibrary system by
clicking on the links or querying the
docket number.
Any person desiring to intervene or
protest in any of the above proceedings
must file in accordance with Rules 211
and 214 of the Commission’s
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Regulations (18 CFR 385.211 and
385.214) on or before 5:00 p.m. Eastern
Time on the specified comment date.
Protests may be considered, but
intervention is necessary to become a
party to the proceeding.
eFiling is encouraged. More detailed
information relating to filing
requirements, interventions, protests,
service, and qualifying facilities filings
can be found at: https://www.ferc.gov/
docs-filing/efiling/filing-req.pdf. For
other information, call (866) 208–3676
(toll free). For TTY, call (202) 502–8659.
Dated: January 13, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2020–00792 Filed 1–17–20; 8:45 am]
Federal Energy Regulatory
Commission
[FR Doc. 2020–00870 Filed 1–17–20; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Proposed Salt Lake City Area
Integrated Projects Firm Power Rate
and Colorado River Storage Project
Transmission and Ancillary Services
Rates—Rate Order No. WAPA–190
Take notice that the Commission has
received the following Natural Gas
Pipeline Rate and Refund Report filings:
Docket Numbers: RP20–432–000.
Applicants: Rockies Express Pipeline
LLC.
Description: § 4(d) Rate Filing: REX
2020–01–13 Negotiated Rate
Agreements to be effective 1/14/2020.
Filed Date: 1/13/20.
Accession Number: 20200113–5170.
Comments Due: 5 p.m. ET 1/27/20.
Docket Numbers: RP20–433–000.
Applicants: Adelphia Gateway, LLC.
Description: § 4(d) Rate Filing:
Adelphia NAESB update Filing 1–13–20
to be effective 1/13/2020.
Filed Date: 1/13/20.
Accession Number: 20200113–5175.
Comments Due: 5 p.m. ET 1/27/20.
The filings are accessible in the
Commission’s eLibrary system by
clicking on the links or querying the
docket number.
Any person desiring to intervene or
protest in any of the above proceedings
must file in accordance with Rules 211
and 214 of the Commission’s
Regulations (18 CFR 385.211 and
385.214) on or before 5:00 p.m. Eastern
time on the specified date(s). Protests
may be considered, but intervention is
necessary to become a party to the
proceeding.
eFiling is encouraged. More detailed
information relating to filing
requirements, interventions, protests,
service, and qualifying facilities filings
can be found at: https://www.ferc.gov/
docs-filing/efiling/filing-req.pdf. For
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Western Area Power
Administration (WAPA) proposes a new
Salt Lake City Area Integrated Projects
(SLCA/IP) firm power rate and revised
Colorado River Storage Project (CRSP)
transmission and ancillary services
formula rates. The existing rates for
these services expire on September 30,
2020. Currently, there is a 4.25 percent
projected decrease to the firm power
composite rate. WAPA also proposes
modifications to the Cost Recovery
Charge (CRC) formula. WAPA proposes
changes to the annual transmission
revenue requirement. WAPA also
proposes to add generator imbalance
service to the energy imbalance rate
schedule and implement a new rate
schedule for the sale of surplus
products.
SUMMARY:
Combined Notice of Filings
Fmt 4703
Dated: January 14, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
Western Area Power
Administration, DOE.
ACTION: Notice of proposed firm power
rate and transmission and ancillary
services formula rates.
DEPARTMENT OF ENERGY
Frm 00033
other information, call (866) 208–3676
(toll free). For TTY, call (202) 502–8659.
AGENCY:
BILLING CODE 6717–01–P
PO 00000
3367
A consultation and comment
period will begin January 21, 2020 and
end April 20, 2020. WAPA will present
a detailed explanation of the proposed
rates and modifications at a public
information forum on the following date
and time: March 12, 2020, 11 a.m. MDT
to 1 p.m. MDT. WAPA will accept oral
and written comments at a public
comment forum on the following date
and time: March 12, 2020, 1:30 p.m. to
no later than 3 p.m. MDT. WAPA will
accept written comments any time
during the consultation and comment
period.
DATES:
Written comments and
requests to be informed about Federal
Energy Regulatory Commission (FERC)
actions concerning the proposed rates
submitted by WAPA to FERC for
approval should be sent to: Mr. Steven
Johnson, CRSP Manager, Colorado River
Storage Project Management Center,
ADDRESSES:
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Western Area Power Administration,
299 South Main Street, Suite 200, Salt
Lake City, UT 84111, (801) 524–6372, or
email: johnsons@wapa.gov or CRSPMCRATE-ADJ@WAPA.GOV. WAPA will
post information about the proposed
rates and written comments received to
its website at: https://www.wapa.gov/
regions/CRSP/rates/Pages/rates.aspx.
The public information and comment
forum location is 299 South Main Street,
23rd Floor Conference Room, Salt Lake
City, Utah.
FOR FURTHER INFORMATION CONTACT: Mr.
Thomas Hackett, Rates Manager,
Colorado River Storage Project
Management Center, Western Area
Power Administration, (801) 524–5503,
or email: CRSPMC-rate-adj@wapa.gov.
SUPPLEMENTARY INFORMATION: On
December 29, 2016, FERC approved and
confirmed, under Rate Order No.
WAPA–169 on a final basis through
September 30, 2020,1 the following Rate
Schedules: SLIP–F10 for SLCA/IP Firm
Power, SP–PTP8 for Firm Point-ToPoint Transmission Service, SP–NW4
for Network Integration Transmission
Service, SP–NFT7 for Non-Firm PointTo-Point Transmission Service, SP–SD4
for Scheduling, System Control, and
Dispatch Service, SP–RS4 for Reactive
Supply and Voltage Control from
Generation and Other Sources Service,
SP–EI4 for Energy Imbalance Service,
SP–FR4 for Regulation and Frequency
Response Service, SP–SSR4 for
Operating Reserves—Spinning and
Supplemental Reserve Services, and
SP–UU1 for Unreserved Use Penalties.
FERC subsequently approved and
confirmed, under Rate Order No.
WAPA–174 2 on a final basis through
September 30, 2021, the following Rate
Schedules: L–AS1 for Scheduling,
System Control, and Dispatch Service,
L–AS2 for Reactive Supply and Voltage
Control from Generation or Other
Sources Service, and L–AS3 for
Regulation and Frequency Response
Service, which superseded Rate
Schedules SP–SD4, SP–RS4, and SP–
FR4, respectively.
The proposed firm power rate is a
fixed rate, and WAPA will continue to
use the formula-based methodology for
the proposed transmission and ancillary
services rates, which include an annual
update to the applicable financial and
load data. WAPA intends the proposed
rates to be effective October 1, 2020. The
charges under the formula rates will be
annually updated each October 1
thereafter. The proposed rates will
remain in effect until September 30,
2025, or until WAPA supersedes or
changes the rates through another
public rate process pursuant to 10 CFR
part 903, whichever occurs first.
The proposed rates will provide
WAPA with sufficient revenue to
recover annual Operation, Maintenance
and Replacement (OM&R) expenses,
interest expense, irrigation assistance,
and capital repayment requirements
while ensuring repayment of the project
within the cost recovery criteria set
forth in Department of Energy (DOE)
Order Resource Application 6120.2.
SLCA/IP Firm Power Rate
Under the current Rate Schedule
SLIP–10, the energy rate is 12.19 mills
per kilowatthour (mills/kWh), and the
capacity rate is $5.18 per kilowattmonth
($/kWmonth). The composite rate of all
charges, used for reference only as a
comparison against other wholesale
power rates, is 29.42 mills/kWh.
The revenue requirement for the
proposed rate is based upon the most
current data available, specifically the
fiscal year (FY) 2018 historical financial
data and the FY 2021 work plans for
WAPA and the Bureau of Reclamation
(Reclamation). WAPA plans to use the
FY 2019 historical financial data and FY
2022 work plans, if available, in the
final rate setting study and rate order
submission.
TABLE 1—COMPARISON OF EXISTING AND PROPOSED FIRM POWER RATES
Existing rate
under rate schedule
SLIP–F10
effective
October 1, 2015
Rate schedule
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Base Rate:
Firm Energy: (mills/kWh) ......................................................................
Firm Capacity: ($kW/month) .................................................................
Composite Rate 3: (mills/kWh) ..............................................................
12.19
5.18
29.42
Currently, WAPA uses Reclamation’s
April, 24-month, long-term, average
hydrological study in combination with
Reclamation’s August Colorado River
Simulation System (CRSS) model traces
to forecast 5 years of firming-energy
purchase requirements. WAPA proposes
using the most-probable water releases
reported in Reclamation’s August 24Month Study to determine the first year
of firming-energy-purchase projections.
For subsequent years, WAPA will
continue to use Reclamation’s August
CRSS model traces to estimate energy
purchase projections while using a
rolling median value to minimize
fluctuations. In addition, WAPA
proposes projecting the required
firming-energy purchases, for a period
that overlaps the years in which a
subsequent rate would become effective,
in order to avoid gaps in the forecasts.
Finally, WAPA plans to remove the
$4 million per year in purchase power
out years in the current rate schedule,
which was previously used as a broadcost estimate of operational energy
purchases for the Energy Marketing and
Management Office in Montrose,
Colorado. Improved modeling tools that
1 Order Confirming and Approving Rate
Schedules on a Final Basis, FERC Docket Nos.
EF15–10–000, 155 FERC ¶ 61,042 (2016).
2 WAPA–174 was approved by the Deputy
Secretary of Energy on August 12, 2016 (81 FR
56632). FERC Order Confirming and Approving
Rate Schedules on a Final Basis, FERC Docket No.
EF16–5–000, 158 FERC ¶ 62,181 (2017).
3 The composite rate is used for reference only as
a comparison against other wholesale power rates.
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Proposed rate
under rate schedule
SLIP–F11
effective
October 1, 2020
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11.79
5.01
28.17
Change
(%)
¥3.28
¥3.28
¥4.25
incorporate outages and scheduled
maintenance produce more accurate
estimates of purchase power expenses
have rendered this requirement
obsolete.
Cost Recovery Charge
WAPA would continue to use the
CRC, if necessary, as a mechanism to
adequately recover and maintain a
sufficient balance in the Upper Colorado
River Basin Fund (Basin Fund) 4 in the
event projected expenses significantly
exceed projected revenue estimates. The
CRC is an additional surcharge on all
4 Upper Colorado River Basin Fund was
established through the CRSP Act of 1956, to
receive revenues collected in connection with the
projects, to be made available for defraying the
project’s costs of operation, maintenance, and
emergency expenditures.
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Sustainable Hydro Power (SHP) 5 energy
deliveries. The CRC may be
implemented when, among other things,
the Basin Fund’s cash balance is at risk
due to low hydropower generation, high
prices for firming power, and funding
for capitalized investments. The
volatility of hydropower generation and
power prices continues to be a concern
for cost-recovery issues for the SLCA/IP.
The CRC is based only on Basin Fund
cash analysis and is independent of the
Power Repayment Study calculations.
WAPA proposes to move the CRC
from a FY timeline to a calendar year
(CY) timeline and to use Reclamation’s
August 24-month Study to calculate
projected purchase power expenses.
This aligns the purchase power
projections for the CRC with those in
the firm power rate. This proposal
would change the annual notification
date from May 1 to October 1. WAPA
would provide its customers with
information concerning the anticipated
CRC and allow them 45 days to request
a waiver or accept the CRC. The
established CRC would be in effect for
12 months from the date implemented.
If circumstances dictate the need to
reassess an enacted CRC, the updated
CRC would supersede the previous CRC
and remain in effect for 12 months.
The CRC is implemented at WAPA’s
discretion based on the balance of the
Basin Fund and WAPA’s ability to meet
contractual requirements.6 The
minimum Basin Fund carryover balance
is $40 million.
TABLE 3—CRC IMPLEMENTATION TIERS
Tier
i ................
ii ...............
iii ..............
iv ..............
v ...............
Criteria, if the Basin Fund beginning balance is:
Greater than $150 million with an expected decrease to below $75 million ....................................
Less than $150 million but greater than $120 million with an expected 50 percent decrease in
the next CY.
Less than $120 million but greater than $90 million with an expected 40 percent decrease in the
next CY.
Less than $90 million but greater than $60 million with an expected 25 percent decrease in the
next CY.
Less than $60 million but greater than $40 million with an expected decrease to below $40 million in the next CY.
WAPA also reserves the right to
consider a CRC if annual water releases
from Glen Canyon Dam fall below 8.23
million acre-feet regardless of the Basin
Fund balance.
Customers can accept either the CRC
or WL, not a combination of the two.
For these customers, WAPA will
establish an energy waiver level (WL)
using the CRC formula. The WL
provides WAPA the ability to reduce
purchase power expenses by scheduling
less energy than its contractual
obligations. For those customers who
agree to schedule no more energy than
their proportionate share of the WL,
WAPA will waive the CRC for that year.
WAPA also proposes modifications in
SLIP–F11 to account for lost revenue
associated with the decreased energy
deliveries that occur when a customer
requests the WL. The details of the
calculations will be provided in the
customer brochure prior to the public
information forum. WAPA also
proposes to decrease a customer’s
monthly SHP capacity allocation
proportionally under the WL to match
the monthly energy reduction.
Transmission Services
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Annual Transmission Revenue
Requirement (ATRR)
Under this proposal, WAPA would
not change the existing formula rate for
calculating the Annual Transmission
5 SHP Energy—Sustainable Hydro Power energy
is the minimum quantity of firm energy, expressed
in kWh, that each Salt Lake City Area Integrated
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Annually.
Semi-Annual (May/November).
Monthly.
Revenue Requirement (ATRR), which is
applicable to both Network Integration
and Point-to-Point transmission
services. The ATRR is the annual cost
of the CRSP Transmission System,
adjusted for Non-Firm Point-to-Point
revenue credits, other miscellaneous
charges or credits, and the prior year
true-up. WAPA is, however, proposing
to change the projection period for
calculating the ATRR in order to recover
transmission O&M costs on a current
basis rather than on a historical basis.
Using the current-basis methodology
would more accurately align cost
recovery with cost incurrence. WAPA
proposes to estimate transmission costs
and loads for the current year in the
annual rate calculation, thus changing
how the inputs are developed rather
than the formula rate itself. WAPA
would then true-up cost estimates to
actual costs and any revenue collected
in excess of WAPA’s actual net revenue
requirement would be returned to
customers through a credit against the
transmission rates in a subsequent year.
Actual revenues that collect less than
the net revenue requirement would,
likewise, need to be recovered through
an increased revenue requirement in a
subsequent year. The true-up procedure
would help ensure WAPA recovers no
more and no less than the actual
transmission costs for the year.
Unreserved Use Penalties
Projects firm electric service customer/contractor is
entitled to receive each Winter Season and each
Summer Season as set forth in the respective firm
electric service contract with each customer/
contractor.
6 See Table 3.
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WAPA proposes no changes to the
Unreserved Use penalty rate.
Ancillary Services
Energy Imbalance and Generator
Imbalance Services
WAPA proposes adding Generator
Imbalance Service (GIS), Schedule 9 to
WAPA’s Open Access Transmission
Tariff to the Energy Imbalance Service
Rate Schedule. GIS is provided to CRSP,
as a Transmission Service Provider, by
the Western Area Colorado Missouri
Balancing Authority under Rate
Schedule L–AS9.
Spinning and Supplemental Reserves
WAPA proposes no changes to the
Operating Reserves—Spinning and
Supplemental Reserves Services
formula rate.
Sale of Surplus Products (SP–SS1)
WAPA proposes implementing a new
rate schedule applicable to the sale of
the following surplus energy and
capacity products: Energy, regulation,
reserves, and frequency response.
WAPA would determine the charge for
each product at the time of the sale
based on market rates, plus applicable
administrative costs, and would use
separate agreement(s) to specify the
terms of sale(s). The customer would be
responsible for acquiring transmission
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service necessary to deliver the
product(s), for which a separate charge
may be incurred.
Legal Authority
Existing DOE procedures for public
participation in power and transmission
rate adjustments (10 CFR part 903) were
published on September 18, 1985, and
February 21, 2019.7
The proposed action is a major rate
adjustment, as defined by 10 CFR
903.2(e). In accordance with 10 CFR
903.15(a) and 10 CFR 903.16(a), WAPA
will hold public information and public
comment forums for this rate
adjustment. WAPA will review and
consider all timely public comments at
the conclusion of the consultation and
comment period and make amendments
or adjustments to the proposal as
appropriate. Proposed rates will be
forwarded to the Assistant Secretary for
Electricity for approval on an interim
basis.
WAPA is proposing the SLCA/IP firm
power rate and revised CRSP
transmission and ancillary services
formula rates in accordance with section
302 of the DOE Organization Act (42
U.S.C. 7152). This Act transferred to,
and vested in, the Secretary of Energy
the power marketing functions of the
Secretary of the Department of the
Interior and the Bureau of Reclamation
under the Reclamation Act of 1902 (ch.
1093, 32 Stat. 388), as amended and
supplemented by subsequent laws,
particularly section 9(c) of the
Reclamation Project Act of 1939 (43
U.S.C. 485h(c)); and other acts that
specifically apply to the projects
involved.
By Delegation Order No. 00–037.00B,
effective November 19, 2016, the
Secretary of Energy delegated: (1) The
authority to develop power and
transmission rates to WAPA’s
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, or to remand
or disapprove such rates to FERC. By
Delegation Order No. 00–002.00Q,
effective November 1, 2018, the
Secretary of Energy also delegated the
authority to confirm, approve, and place
such rates into effect on an interim basis
to the Under Secretary of Energy. By
Redelegation Order No. 00–002.10D,
effective June 4, 2019, the Under
Secretary of Energy further delegated
the authority to confirm, approve, and
place such rates into effect on an
7 50 FR 37835 (September 18, 1985) and 84 FR
5347 (February 21, 2019).
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18:20 Jan 17, 2020
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interim basis to the Assistant Secretary
for Electricity.
Availability of Information
All brochures, studies, comments,
letters, memoranda, or other documents
that WAPA initiates or uses to develop
the proposed rates are available for
inspection and copying at the Colorado
River Storage Project Management
Center, 299 South Main Street, Suite
200, Salt Lake City, Utah. Many of these
documents and supporting information
are also available on WAPA’s website at
https://www.wapa.gov/regions/CRSP/
rates/Pages/rates.aspx.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is in the process of
determining whether an environmental
assessment or an environmental impact
statement should be prepared or if this
action can be categorically excluded
from those requirements.8
Determination Under Executive Order
12866
WAPA has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Dated: January 10, 2020.
Mark A. Gabriel,
Administrator.
[FR Doc. 2020–00890 Filed 1–17–20; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–10004–35–ORD]
Human Studies Review Board;
Notification of Public Meetings
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
The Environmental Protection
Agency (EPA), Office of the Science
Advisor, Policy, and Engagement
announces two separate public meetings
of the Human Studies Review Board
(HSRB) to advise the Agency on the
ethical and scientific review of research
involving human subjects.
DATES: A virtual public meeting will be
held on Thursday, January 30, 2020
from 1 p.m. to approximately 5:30 p.m.
SUMMARY:
8 In compliance with the National Environmental
Policy Act (NEPA) of 1969 (42 U.S.C. 4321–4347);
the Council on Environmental Quality Regulations
for implementing NEPA (40 CFR parts 1500–1508);
and DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021).
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Eastern Time. A separate, subsequent
teleconference meeting is planned for
Tuesday, March 17, 2020, from 2 p.m.
to approximately 3:30 p.m. Eastern
Time for the HSRB to finalize its Report
of the January 30, 2020 meeting and
review other possible topics.
ADDRESSES: All of these meetings will be
conducted entirely by telephone and on
the internet. For detailed access
information visit the HSRB website:
https://www2.epa.gov/osa/humanstudies-review-board.
FOR FURTHER INFORMATION CONTACT: Any
member of the public who wishes to
receive further information should
contact the HSRB Designated Federal
Official (DFO), Thomas O’Farrell on
telephone number (202) 564–8451; fax
number: (202) 564–2070; email address:
ofarrell.thomas@epa.gov; or mailing
address: Environmental Protection
Agency, Office of the Science Advisor,
Mail code 8105R, 1200 Pennsylvania
Avenue NW, Washington, DC 20460.
SUPPLEMENTARY INFORMATION:
Meeting access: These meetings will
be open to the public. The full agenda
with access information and meeting
materials will be available at the HSRB
website: https://www2.epa.gov/osa/
human-studies-review-board. For
questions on document availability, or if
you do not have access to the internet,
consult with the DFO, Thomas
O’Farrell, listed under FOR FURTHER
INFORMATION CONTACT.
Special accommodations. For
information on access or services for
individuals with disabilities, or to
request accommodation of a disability,
please contact the DFO listed under FOR
FURTHER INFORMATION CONTACT at least
10 days prior to the meeting to give EPA
as much time as possible to process
your request.
How may I participate in this meeting?
The HSRB encourages the public’s
input. You may participate in these
meetings by following the instructions
in this section.
1. Oral comments. To pre-register to
make oral comments, please contact the
DFO, Thomas O’Farrell, listed under
FOR FURTHER INFORMATION CONTACT.
Requests to present oral comments
during the meeting will be accepted up
to Noon Eastern Time on Thursday,
January 23, 2020, for the January 30,
2020 meeting and up to Noon Eastern
Time on Tuesday, March 10, 2020 for
the March 17, 2020 meeting. To the
extent that time permits, interested
persons who have not pre-registered
may be permitted by the HSRB Chair to
present oral comments during either
meeting at the designated time on the
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]]>Agencies
[Federal Register Volume 85, Number 13 (Tuesday, January 21, 2020)]
[Notices]
[Pages 3367-3370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00890]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Proposed Salt Lake City Area Integrated Projects Firm Power Rate
and Colorado River Storage Project Transmission and Ancillary Services
Rates--Rate Order No. WAPA-190
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed firm power rate and transmission and
ancillary services formula rates.
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SUMMARY: Western Area Power Administration (WAPA) proposes a new Salt
Lake City Area Integrated Projects (SLCA/IP) firm power rate and
revised Colorado River Storage Project (CRSP) transmission and
ancillary services formula rates. The existing rates for these services
expire on September 30, 2020. Currently, there is a 4.25 percent
projected decrease to the firm power composite rate. WAPA also proposes
modifications to the Cost Recovery Charge (CRC) formula. WAPA proposes
changes to the annual transmission revenue requirement. WAPA also
proposes to add generator imbalance service to the energy imbalance
rate schedule and implement a new rate schedule for the sale of surplus
products.
DATES: A consultation and comment period will begin January 21, 2020
and end April 20, 2020. WAPA will present a detailed explanation of the
proposed rates and modifications at a public information forum on the
following date and time: March 12, 2020, 11 a.m. MDT to 1 p.m. MDT.
WAPA will accept oral and written comments at a public comment forum on
the following date and time: March 12, 2020, 1:30 p.m. to no later than
3 p.m. MDT. WAPA will accept written comments any time during the
consultation and comment period.
ADDRESSES: Written comments and requests to be informed about Federal
Energy Regulatory Commission (FERC) actions concerning the proposed
rates submitted by WAPA to FERC for approval should be sent to: Mr.
Steven Johnson, CRSP Manager, Colorado River Storage Project Management
Center,
[[Page 3368]]
Western Area Power Administration, 299 South Main Street, Suite 200,
Salt Lake City, UT 84111, (801) 524-6372, or email: [email protected]
or [email protected]. WAPA will post information about the
proposed rates and written comments received to its website at: https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.
The public information and comment forum location is 299 South Main
Street, 23rd Floor Conference Room, Salt Lake City, Utah.
FOR FURTHER INFORMATION CONTACT: Mr. Thomas Hackett, Rates Manager,
Colorado River Storage Project Management Center, Western Area Power
Administration, (801) 524-5503, or email: [email protected]
SUPPLEMENTARY INFORMATION: On December 29, 2016, FERC approved and
confirmed, under Rate Order No. WAPA-169 on a final basis through
September 30, 2020,\1\ the following Rate Schedules: SLIP-F10 for SLCA/
IP Firm Power, SP-PTP8 for Firm Point-To-Point Transmission Service,
SP-NW4 for Network Integration Transmission Service, SP-NFT7 for Non-
Firm Point-To-Point Transmission Service, SP-SD4 for Scheduling, System
Control, and Dispatch Service, SP-RS4 for Reactive Supply and Voltage
Control from Generation and Other Sources Service, SP-EI4 for Energy
Imbalance Service, SP-FR4 for Regulation and Frequency Response
Service, SP-SSR4 for Operating Reserves--Spinning and Supplemental
Reserve Services, and SP-UU1 for Unreserved Use Penalties. FERC
subsequently approved and confirmed, under Rate Order No. WAPA-174 \2\
on a final basis through September 30, 2021, the following Rate
Schedules: L-AS1 for Scheduling, System Control, and Dispatch Service,
L-AS2 for Reactive Supply and Voltage Control from Generation or Other
Sources Service, and L-AS3 for Regulation and Frequency Response
Service, which superseded Rate Schedules SP-SD4, SP-RS4, and SP-FR4,
respectively.
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\1\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket Nos. EF15-10-000, 155 FERC ] 61,042 (2016).
\2\ WAPA-174 was approved by the Deputy Secretary of Energy on
August 12, 2016 (81 FR 56632). FERC Order Confirming and Approving
Rate Schedules on a Final Basis, FERC Docket No. EF16-5-000, 158
FERC ] 62,181 (2017).
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The proposed firm power rate is a fixed rate, and WAPA will
continue to use the formula-based methodology for the proposed
transmission and ancillary services rates, which include an annual
update to the applicable financial and load data. WAPA intends the
proposed rates to be effective October 1, 2020. The charges under the
formula rates will be annually updated each October 1 thereafter. The
proposed rates will remain in effect until September 30, 2025, or until
WAPA supersedes or changes the rates through another public rate
process pursuant to 10 CFR part 903, whichever occurs first.
The proposed rates will provide WAPA with sufficient revenue to
recover annual Operation, Maintenance and Replacement (OM&R) expenses,
interest expense, irrigation assistance, and capital repayment
requirements while ensuring repayment of the project within the cost
recovery criteria set forth in Department of Energy (DOE) Order
Resource Application 6120.2.
SLCA/IP Firm Power Rate
Under the current Rate Schedule SLIP-10, the energy rate is 12.19
mills per kilowatthour (mills/kWh), and the capacity rate is $5.18 per
kilowattmonth ($/kWmonth). The composite rate of all charges, used for
reference only as a comparison against other wholesale power rates, is
29.42 mills/kWh.
The revenue requirement for the proposed rate is based upon the
most current data available, specifically the fiscal year (FY) 2018
historical financial data and the FY 2021 work plans for WAPA and the
Bureau of Reclamation (Reclamation). WAPA plans to use the FY 2019
historical financial data and FY 2022 work plans, if available, in the
final rate setting study and rate order submission.
Table 1--Comparison of Existing and Proposed Firm Power Rates
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Existing rate under Proposed rate under
rate schedule SLIP-F10 rate schedule SLIP-F11
Rate schedule effective October 1, effective October 1, Change (%)
2015 2020
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Base Rate:
Firm Energy: (mills/kWh).................. 12.19 11.79 -3.28
Firm Capacity: ($kW/month)................ 5.18 5.01 -3.28
Composite Rate \3\: (mills/kWh)........... 29.42 28.17 -4.25
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Currently, WAPA uses Reclamation's April, 24-month, long-term,
average hydrological study in combination with Reclamation's August
Colorado River Simulation System (CRSS) model traces to forecast 5
years of firming-energy purchase requirements. WAPA proposes using the
most-probable water releases reported in Reclamation's August 24-Month
Study to determine the first year of firming-energy-purchase
projections. For subsequent years, WAPA will continue to use
Reclamation's August CRSS model traces to estimate energy purchase
projections while using a rolling median value to minimize
fluctuations. In addition, WAPA proposes projecting the required
firming-energy purchases, for a period that overlaps the years in which
a subsequent rate would become effective, in order to avoid gaps in the
forecasts.
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\3\ The composite rate is used for reference only as a
comparison against other wholesale power rates.
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Finally, WAPA plans to remove the $4 million per year in purchase
power out years in the current rate schedule, which was previously used
as a broad-cost estimate of operational energy purchases for the Energy
Marketing and Management Office in Montrose, Colorado. Improved
modeling tools that incorporate outages and scheduled maintenance
produce more accurate estimates of purchase power expenses have
rendered this requirement obsolete.
Cost Recovery Charge
WAPA would continue to use the CRC, if necessary, as a mechanism to
adequately recover and maintain a sufficient balance in the Upper
Colorado River Basin Fund (Basin Fund) \4\ in the event projected
expenses significantly exceed projected revenue estimates. The CRC is
an additional surcharge on all
[[Page 3369]]
Sustainable Hydro Power (SHP) \5\ energy deliveries. The CRC may be
implemented when, among other things, the Basin Fund's cash balance is
at risk due to low hydropower generation, high prices for firming
power, and funding for capitalized investments. The volatility of
hydropower generation and power prices continues to be a concern for
cost-recovery issues for the SLCA/IP. The CRC is based only on Basin
Fund cash analysis and is independent of the Power Repayment Study
calculations.
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\4\ Upper Colorado River Basin Fund was established through the
CRSP Act of 1956, to receive revenues collected in connection with
the projects, to be made available for defraying the project's costs
of operation, maintenance, and emergency expenditures.
\5\ SHP Energy--Sustainable Hydro Power energy is the minimum
quantity of firm energy, expressed in kWh, that each Salt Lake City
Area Integrated Projects firm electric service customer/contractor
is entitled to receive each Winter Season and each Summer Season as
set forth in the respective firm electric service contract with each
customer/contractor.
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WAPA proposes to move the CRC from a FY timeline to a calendar year
(CY) timeline and to use Reclamation's August 24-month Study to
calculate projected purchase power expenses. This aligns the purchase
power projections for the CRC with those in the firm power rate. This
proposal would change the annual notification date from May 1 to
October 1. WAPA would provide its customers with information concerning
the anticipated CRC and allow them 45 days to request a waiver or
accept the CRC. The established CRC would be in effect for 12 months
from the date implemented. If circumstances dictate the need to
reassess an enacted CRC, the updated CRC would supersede the previous
CRC and remain in effect for 12 months.
The CRC is implemented at WAPA's discretion based on the balance of
the Basin Fund and WAPA's ability to meet contractual requirements.\6\
The minimum Basin Fund carryover balance is $40 million.
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\6\ See Table 3.
Table 3--CRC Implementation Tiers
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Criteria, if the Basin Fund
Tier beginning balance is: Review
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i............... Greater than $150 million with an Annually.
expected decrease to below $75
million.
ii.............. Less than $150 million but greater
than $120 million with an
expected 50 percent decrease in
the next CY.
iii............. Less than $120 million but greater
than $90 million with an expected
40 percent decrease in the next
CY.
iv.............. Less than $90 million but greater Semi-Annual (May/
than $60 million with an expected November).
25 percent decrease in the next
CY.
v............... Less than $60 million but greater Monthly.
than $40 million with an expected
decrease to below $40 million in
the next CY.
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WAPA also reserves the right to consider a CRC if annual water
releases from Glen Canyon Dam fall below 8.23 million acre-feet
regardless of the Basin Fund balance.
Customers can accept either the CRC or WL, not a combination of the
two. For these customers, WAPA will establish an energy waiver level
(WL) using the CRC formula. The WL provides WAPA the ability to reduce
purchase power expenses by scheduling less energy than its contractual
obligations. For those customers who agree to schedule no more energy
than their proportionate share of the WL, WAPA will waive the CRC for
that year.
WAPA also proposes modifications in SLIP-F11 to account for lost
revenue associated with the decreased energy deliveries that occur when
a customer requests the WL. The details of the calculations will be
provided in the customer brochure prior to the public information
forum. WAPA also proposes to decrease a customer's monthly SHP capacity
allocation proportionally under the WL to match the monthly energy
reduction.
Transmission Services
Annual Transmission Revenue Requirement (ATRR)
Under this proposal, WAPA would not change the existing formula
rate for calculating the Annual Transmission Revenue Requirement
(ATRR), which is applicable to both Network Integration and Point-to-
Point transmission services. The ATRR is the annual cost of the CRSP
Transmission System, adjusted for Non-Firm Point-to-Point revenue
credits, other miscellaneous charges or credits, and the prior year
true-up. WAPA is, however, proposing to change the projection period
for calculating the ATRR in order to recover transmission O&M costs on
a current basis rather than on a historical basis. Using the current-
basis methodology would more accurately align cost recovery with cost
incurrence. WAPA proposes to estimate transmission costs and loads for
the current year in the annual rate calculation, thus changing how the
inputs are developed rather than the formula rate itself. WAPA would
then true-up cost estimates to actual costs and any revenue collected
in excess of WAPA's actual net revenue requirement would be returned to
customers through a credit against the transmission rates in a
subsequent year. Actual revenues that collect less than the net revenue
requirement would, likewise, need to be recovered through an increased
revenue requirement in a subsequent year. The true-up procedure would
help ensure WAPA recovers no more and no less than the actual
transmission costs for the year.
Unreserved Use Penalties
WAPA proposes no changes to the Unreserved Use penalty rate.
Ancillary Services
Energy Imbalance and Generator Imbalance Services
WAPA proposes adding Generator Imbalance Service (GIS), Schedule 9
to WAPA's Open Access Transmission Tariff to the Energy Imbalance
Service Rate Schedule. GIS is provided to CRSP, as a Transmission
Service Provider, by the Western Area Colorado Missouri Balancing
Authority under Rate Schedule L-AS9.
Spinning and Supplemental Reserves
WAPA proposes no changes to the Operating Reserves--Spinning and
Supplemental Reserves Services formula rate.
Sale of Surplus Products (SP-SS1)
WAPA proposes implementing a new rate schedule applicable to the
sale of the following surplus energy and capacity products: Energy,
regulation, reserves, and frequency response. WAPA would determine the
charge for each product at the time of the sale based on market rates,
plus applicable administrative costs, and would use separate
agreement(s) to specify the terms of sale(s). The customer would be
responsible for acquiring transmission
[[Page 3370]]
service necessary to deliver the product(s), for which a separate
charge may be incurred.
Legal Authority
Existing DOE procedures for public participation in power and
transmission rate adjustments (10 CFR part 903) were published on
September 18, 1985, and February 21, 2019.\7\
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\7\ 50 FR 37835 (September 18, 1985) and 84 FR 5347 (February
21, 2019).
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The proposed action is a major rate adjustment, as defined by 10
CFR 903.2(e). In accordance with 10 CFR 903.15(a) and 10 CFR 903.16(a),
WAPA will hold public information and public comment forums for this
rate adjustment. WAPA will review and consider all timely public
comments at the conclusion of the consultation and comment period and
make amendments or adjustments to the proposal as appropriate. Proposed
rates will be forwarded to the Assistant Secretary for Electricity for
approval on an interim basis.
WAPA is proposing the SLCA/IP firm power rate and revised CRSP
transmission and ancillary services formula rates in accordance with
section 302 of the DOE Organization Act (42 U.S.C. 7152). This Act
transferred to, and vested in, the Secretary of Energy the power
marketing functions of the Secretary of the Department of the Interior
and the Bureau of Reclamation under the Reclamation Act of 1902 (ch.
1093, 32 Stat. 388), as amended and supplemented by subsequent laws,
particularly section 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)); and other acts that specifically apply to the projects
involved.
By Delegation Order No. 00-037.00B, effective November 19, 2016,
the Secretary of Energy delegated: (1) The authority to develop power
and transmission rates to WAPA's Administrator; (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, or to remand or
disapprove such rates to FERC. By Delegation Order No. 00-002.00Q,
effective November 1, 2018, the Secretary of Energy also delegated the
authority to confirm, approve, and place such rates into effect on an
interim basis to the Under Secretary of Energy. By Redelegation Order
No. 00-002.10D, effective June 4, 2019, the Under Secretary of Energy
further delegated the authority to confirm, approve, and place such
rates into effect on an interim basis to the Assistant Secretary for
Electricity.
Availability of Information
All brochures, studies, comments, letters, memoranda, or other
documents that WAPA initiates or uses to develop the proposed rates are
available for inspection and copying at the Colorado River Storage
Project Management Center, 299 South Main Street, Suite 200, Salt Lake
City, Utah. Many of these documents and supporting information are also
available on WAPA's website at https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is in the process of determining whether an environmental
assessment or an environmental impact statement should be prepared or
if this action can be categorically excluded from those
requirements.\8\
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\8\ In compliance with the National Environmental Policy Act
(NEPA) of 1969 (42 U.S.C. 4321-4347); the Council on Environmental
Quality Regulations for implementing NEPA (40 CFR parts 1500-1508);
and DOE NEPA Implementing Procedures and Guidelines (10 CFR part
1021).
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Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Dated: January 10, 2020.
Mark A. Gabriel,
Administrator.
[FR Doc. 2020-00890 Filed 1-17-20; 8:45 am]
BILLING CODE 6450-01-P
