Central Valley Project-Rate Order No. WAPA-194, 11511-11523 [2021-03853]

Agencies

• DEPARTMENT OF ENERGY
• Western Area Power Administration

[Federal Register Volume 86, Number 36 (Thursday, February 25, 2021)]
[Notices]
[Pages 11511-11523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03853]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Valley Project--Rate Order No. WAPA-194

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order concerning Energy Imbalance Market 
Services, Sale of Surplus Products, and revisions to existing Energy 
Imbalance and Generator Imbalance rate schedules.

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SUMMARY: This Rate Order confirms, approves, and places into effect 
Provisional Formula Rates for the Central Valley Project's (CVP) Energy 
Imbalance Market (EIM) Services, Sale of Surplus Products (SSP), and 
revisions

[[Page 11512]]

to the existing Energy Imbalance (EI) and Generator Imbalance (GI) 
formula rates (collectively, Provisional Formula Rates). The 
Provisional Formula Rates are associated with three events: 
Participation in the California Independent System Operator's (CAISO) 
EIM; alignment of CVP's SSP with other Western Area Power 
Administration (WAPA) regions; and revision of existing EI and GI rate 
schedules.

DATES: The Provisional Formula Rates under rate schedules CV-EIM1S, CV-
EIM4S, CV-EIM9S, and CV-SSP2 \1\ are effective on March 25, 2021, and 
will remain in effect through December 31, 2024, pending confirmation 
and approval by the Federal Energy Regulatory Commission (FERC) on a 
final basis or until superseded. The Provisional Formula Rates under 
rate schedules CV-EID5 and CV-GID2 are effective on the first day of 
the first full billing period after March 25, 2021, and will remain in 
effect through December 31, 2024, pending confirmation and approval by 
FERC on a final basis or until superseded.
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    \1\ The Balancing Authority of Northern California accelerated 
the implementation date for Frequency Response Reserve, which is 
included under the Rate Schedule for SPP. To accommodate the 
schedule, WAPA implemented a short-term rate for SPP as CV-SSP1. 
This necessitated a change in numbering from proposed Rate Schedule 
CV-SSP1 to final Rate Schedule CV-SSP2.

FOR FURTHER INFORMATION CONTACT: Ms. Sonja Anderson, Regional Manager, 
Sierra Nevada Region, Western Area Power Administration, 114 Parkshore 
Drive, Folsom, CA 95630, or email: [email protected], or Ms. Autumn 
Wolfe, Rates Manager, Sierra Nevada Region, Western Area Power 
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Administration, (916) 353-4686 or email: [email protected].

SUPPLEMENTARY INFORMATION: On September 12, 2019, as part of Rate Order 
WAPA-185, FERC confirmed and approved WAPA's formula rates for EI and 
GI Services and Rate Schedules CV-EID4 and CV-GID1 through September 
30, 2024.\2\ On July 31, 2020, WAPA published a notice in the Federal 
Register (FRN) (85 FR 46083) that proposed: (1) New formula rates for 
participation in EIM (CV-EIM1S, CV-EIM4S, and CV-EIM9S); (2) formula 
rate schedule SSP (CV-SSP2) that is consistent with other WAPA regions; 
and (3) revised EI (CV-EID5) and GI (CV-GID2) formula rate schedules. 
These rates are formula-based methodologies that include an annual 
update to the data in the rate formulas. The FRN initiated a public 
consultation and comment period and set forth the date and location of 
the public information and public comment forums.
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    \2\ Order Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. EF19-4-000, 168 FERC ] 62,150 (2019).
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    WAPA made the decision to enter EIM on August 27, 2019, in the 
document posted on the website: https://www.wapa.gov/regions/SN/PowerMarketing/Documents/sn-eim-recommendation-memo.pdf. The 
participation in CAISO's EIM provides market liquidity to make EI 
purchases to maintain just and reasonable pricing, reduces WAPA's 
financial risk if there are few or no resources to purchase, mitigates 
the negative impacts of changing generation mix, and addresses WAPA's 
EI requirements with greater available resources. WAPA has a duty to 
recover its costs within certain statutory periods for fiscal year 
annual expenses and for capital repayment of projects based on DOE 
Orders and statutory obligations. WAPA will recover EIM costs through 
the CVP Power Revenue Requirement (PRR), including startup costs and 
EIM load costs for those customers with loads too small to identify. 
Any potential EIM benefits will also pass through to the PRR.

Legal Authority

    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
the Secretary of Energy delegated: (1) The authority to develop power 
and transmission rates to the WAPA 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 on a final basis, remand, or disapprove such rates to FERC. By 
Delegation Order No. 00-002.00S, effective January 15, 2020, 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. 00-002.10E, effective 
February 14, 2020, 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. By 
Redelegation Order No. 00-002.10-05, effective July 8, 2020, the 
Assistant Secretary for Electricity further delegated the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to WAPA's Administrator. This rate action is issued under Redelegation 
Order No. 00-002.10-05 and Department of Energy procedures for public 
participation in rate adjustments codified at 10 CFR part 903.\3\
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    \3\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    Following DOE's review of WAPA's proposal, I hereby confirm, 
approve, and place Rate Order No. WAPA-194, which provides the formula 
rates for the CVP's EIM Services, SSP, and revisions to the existing EI 
and GI service, into effect on an interim basis. WAPA will submit Rate 
Order No. WAPA-194 to FERC for confirmation and approval on a final 
basis.

Department of Energy Administrator, Western Area Power Administration

In the Matter of:
Western Area Power Administration Formula Rates for the Central 
Valley Project Energy Imbalance Market Services, Sale of Surplus 
Products, Revisions to Existing Energy Imbalance) and Generator 
Imbalance Formula Rates Rate Order No. WAPA-194
Order Confirming, Approving, and Placing the Energy Imbalance Market 
Services, Sale of Surplus Products, and Revisions to Existing Energy 
Imbalance and Generator Imbalance Formula Rates for the Central Valley 
Project Into Effect on an Interim Basis
    The Provisional Formula Rates in Rate Order No. WAPA-194 are 
established following section 302 of the Department of Energy (DOE) 
Organization Act (42 U.S.C. 7152).\4\
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    \4\ This Act transferred to, and vested in, the Secretary of 
Energy the power marketing functions of the Secretary of the 
Department of the Interior and the Bureau of Reclamation 
(Reclamation) under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 
388), as amended and supplemented by subsequent laws, particularly 
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 
485h(c)); and other acts that specifically apply to the Central 
Valley Project.
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    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
the Secretary of Energy delegated: (1) The authority to develop power 
and transmission rates to the Western Area Power Administration's 
(WAPA) Administrator; (2) the authority to confirm, approve, and place 
into effect such rates 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 the 
Federal Energy Regulatory Commission (FERC). By Delegation Order No. 
00-002.00S, effective January 15, 2020, 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. 00-002.10E, effective February 14, 2020, the 
Under Secretary of Energy further delegated the authority to confirm, 
approve, and

[[Page 11513]]

place such rates into effect on an interim basis to the Assistant 
Secretary for Electricity. By Redelegation Order No. 00-002.10-05, 
effective July 8, 2020, the Assistant Secretary for Electricity further 
delegated the authority to confirm, approve, and place such rates into 
effect on an interim basis to WAPA's Administrator. This rate action is 
issued under Redelegation Order No. 00-002.10-05 and Department of 
Energy procedures for public participation in rate adjustments set 
forth at 10 CFR part 903.\5\
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    \5\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Acronyms, Terms, and Definitions

    As used in this Rate Order, the following acronyms, terms, and 
definitions apply.
    BA: As defined in WAPA's OATT, is Balancing Authority and is the 
responsible entity that integrates resource plans ahead of time, 
maintains load Interchange-generation balance within a Balancing 
Authority Area, and supports interconnection frequency in real time.
    BAA: As defined in WAPA's OATT, is Balancing Authority Area; the 
term Balancing Authority Area shall have the same meaning as ``Control 
Area.''
    BANC: As defined in WAPA's OATT, is Balancing Authority of Northern 
California (BANC). A joint powers authority that provides BA and other 
services to its members and other entities within the BAA. Members/
entities of BANC may in turn provide transmission service to customers.
    Base Resource: As defined in Central Valley Project's 2025 
Marketing Plan, Base Resource is the Central Valley and Washoe Project 
power (capacity and energy) output determined by WAPA to be available 
for marketing, including the environmental attributes, after meeting 
the requirements of project use and first preference customers, and any 
adjustments for maintenance, reserves, system losses, and certain 
ancillary services.
    Transmission Customer Base Schedule: As defined in WAPA's OATT, 
Attachment S, means Transmission Customers Base Schedule and is an 
energy schedule that provides Transmission Customer hourly-level 
forecast data and other information used as the baseline by which to 
measure Imbalance Energy for purposes of EIM settlement. The term 
``Transmission Customer Base Schedule'' as used in this Tariff is 
synonymous with the term ``EIM Participant Base Schedule'' used in the 
EIM Entity's business practices, and may refer collectively to the 
components of such schedule (resource, Interchange, Intrachange, and 
load determined pursuant to the EIM Entity's business practices) or any 
individual components of such schedule. This term is synonymous to 
``Base Schedule.''
    CAISO: As defined in WAPA's OATT, is the California Independent 
System Operator Corporation. A state-chartered, California, non-profit 
public benefit corporation that operates the transmission facilities of 
all CAISO participating transmission owners and dispatches certain 
generating units and loads. The CAISO is the MO for the EIM.
    Capacity: As defined in Central Valley Project's 2025 Marketing 
Plan, is the electric capability of a generator, transformer, 
transmission circuit, or other equipment.
    Conforming Load: The term is not officially defined by CAISO at 
this time and will be addressed in the future. The following 
description reasonably aligns with the CAISO's use of the term in 
defining load forecasting requirements under EIM: Is the load that 
changes in a reasonably predictable, uniform manner that is 
environmentally driven. A conforming load has a load profile that is 
similar to the aggregated load profile. Due to conventional weather- 
and temperature-based patterns, conforming loads can be forecast with a 
high level of accuracy using historical and meteorological data.
    CVP: As defined in Central Valley Project's 2025 Marketing Plan, is 
Central Valley Project. The multipurpose Federal water development 
project extending from the Cascade Range in northern California to the 
plains along the Kern River south of the city of Bakersfield, 
California.
    DOE: United States Department of Energy.
    DOE Order RA 6120.2: Department of Energy Order outlining power 
marketing administration financial reporting and rate-making 
procedures.
    EI Service: Energy Imbalance Service is an ancillary service that 
provides for the difference between the scheduled and the actual 
delivery of energy to a load within the Transmission Provider's Sub-
BAA.
    EIM: As defined in CAISO's Business Practice Manual, means Energy 
Imbalance Market and is the rules and procedures in Section 29 of the 
CAISO Tariff governing the CAISO's operation of the Real-Time Market in 
BAAs outside of the CAISO BAA and the participation of EIM Market 
Participants in the Real-Time Market.
    EIM Administrative Charge: As defined in CAISO's Business Practice 
Manual, is the fee imposed on transaction in the energy imbalance 
market as described in section 29.11(i)(1) of the CASIO Tariff.
    EIM Entity: As defined in WAPA's OATT, Attachment S, is a BAA that 
enters into the MO's EIM Entity Agreement to enable the EIM to occur in 
its BAA. BANC is the EIM Entity for the BANC EIM Entity BAA. For the 
purposes of this Attachment S, the EIM Entity is the BANC EIM Entity or 
the entity selected by the BANC EIM Entity who is certified by the MO. 
WAPA SN participates in the CAISO Western EIM under the BANC EIM 
Entity.
    EIM Participating Resource: As defined in WAPA's OATT, Attachment 
S, is a resource or a portion of a resource: (1) That meets the 
Transmission Provider's eligibility requirements; (2) has been 
certified by the BANC EIM Entity for participation in the EIM; and (3) 
for which the generation owner and/or operator enters into the MO's EIM 
Participating Resource Agreement and any agreements as may be required 
by BANC and/or the BANC EIM Entity.
    EIM Non-Participating Resource: As defined on CAISO's website 
https://www.westerneim.com/Documents/EIMTrack5-MeteringFAQ.pdf, EIM 
Resource that does not participate in the Real-Time Market but is 
required to be identified in the EIM BAA for settling charges and 
payments related to nonparticipating load and nonparticipating 
resources.
    Energy: As defined in Central Valley Project's 2025 Marketing Plan, 
is measured in terms of the work it is capable of doing over a period 
of time; electric energy is usually measured in kilowatt-hours or 
megawatt-hours.
    FERC: Federal Energy Regulatory Commission.
    Firm Point-to-Point Transmission Service: As defined in WAPA's 
OATT, is transmission service reserved and/or scheduled between 
specified Points of Receipt and Delivery pursuant to Part II of the 
Tariff.
    First Preference Customers/Entity: As defined in Central Valley 
Project's 2025 Marketing Plan, is a preference customer and/or a 
preference entity (an entity qualified to use, but not using, 
preference power) within a country or origin (Trinity, Calaveras, and 
Tuolumne) as specified under the Trinity River Division Act (69 Sta. 
719) and the New Melones Project provisions of the Flood Control Act of 
1962 (76 Stat. 1173, 1191-1192).
    Frequency Response Reserve (FRR) or (FR): As defined in SMUD's 
Operating Reserves OP-114, ``NERC/WECC does not have an official 
definition for Frequency Response Reserve (FRR) yet.

[[Page 11514]]

BANC is defining the FRR as an amount of reserve in MW that is 
synchronized to the system and can automatically respond to system 
frequency deviation. BANC in coordination with WAPA and SMUD procures 
and monitors sufficient FRR in both Day-Ahead scheduling process and 
Real-Time operations to ensure that BANC meet NERC Reliability Standard 
BAL-003-1.1 R1.''
    FY: Fiscal year; October 1 to September 30.
    Generating Unit: As defined in CAISO Tariff, is an individual 
electric generator and its associated plant and apparatus whose 
electrical output is capable of being separately identified and metered 
or a Physical Scheduling Plant that, in either case, is: Located within 
the CAISO BAA (which includes a Pseudo-Tie of a generating unit to the 
CAISO BAA) or, for purposes of scheduling and operating the Real-Time 
Market only, an EIM Entity BAA; connected to the CAISO Controlled Grid, 
either directly or via interconnected transmission, or distribution 
facilities or via a Pseudo-Tie; and capable of producing and delivering 
net Energy (Energy in excess of a generating station's internal power 
requirements).
    GI Service: Generator Imbalance Service is an ancillary service 
that provides for the difference between the output of a generator and 
the delivery schedule from that generator to: (1) another BAA, (2) the 
BANC BAA, or (3) a load within the Transmission Provider's Sub-BAA. GI 
Service during EIM participation is that associated with a generator 
that is not an EIM Participating Resource located in the Transmission 
Provider's Sub-BAA.
    kW: As defined in WAPA's 2025 Marketing Plan, is kilowatt. A unit 
measuring the rate of production of electricity; one kilowatt equals 
one thousand watts.
    LAP: Load Aggregation Point is a set of Pricing Nodes as specified 
in Section 27.2 of the CAISO Tariff that are used for the submission of 
Bids and Settlement of Demand.
    Load Ratio Share: As defined in WAPA's OATT, is the ratio of a 
Transmission Customer's Network Load to the Transmission Provider's 
total load computed in accordance with Sections 34.2 and 34.3 of the 
Network Integration Transmission Service under Part III of the Tariff 
and calculated on a rolling twelve month basis.
    Long-Term Firm Point-to-Point Transmission Service: As defined in 
WAPA's OATT, is Firm Point-to-Point Transmission Service under Part II 
of the Tariff with a term of one year or more.
    MO: As defined in WAPA's OATT, Attachment S, is Market Operator. 
The entity responsible for operation, administration, settlement, and 
oversight of the EIM. The CAISO is the current MO of the EIM.
    MO Tariff: As defined in WAPA's OATT, Attachment S, is those 
portions of the MO's approved tariff, as such tariff may be modified 
from time to time, that specifically apply to the operation, 
administration, settlement, and oversight of the EIM.
    MW: As defined in Central Valley Project's 2025 Marketing Plan, is 
a unit measuring the rate of production of electricity; one megawatt 
equals one million watts.
    NERC: The North American Electric Reliability Corporation.
    New Rate: As defined in WAPA's OATT, means the modification of a 
Rate for transmission or ancillary services provided by the 
Transmission Provider which has been promulgated pursuant to the rate 
development process outlined in Power and Transmission Rates, 10 CFR 
part 903 (2006).
    NITS: Network Integration Transmission Service, as defined in 
WAPA's OATT, is the transmission service provided under Part III of the 
Tariff.
    Non-Conforming Load: The term is not officially defined by CAISO at 
this time and will be addressed in the future. The following 
description reasonably aligns with the CAISO's use of the term in 
defining load forecasting requirements under EIM: Is the load with 
unpredictable load pattern, e.g., pumps, industrial plants, etc., that 
makes it difficult for the CAISO model to accurately forecast. CAISO's 
load forecasting model uses historical actual conforming load data and 
meteorological data determined necessary to accurately forecast the 
conforming load. When non-conforming load causes more than 5% deviation 
(hourly) from the total actual load, they should be modeled separately 
from the load that CAISO will forecast for the EIM Entity (the 
conforming load). This requirement is part of the EIM Readiness 
Criteria in accordance with CAISO Tariff section 29.2(b)(7)(A)(iv).
    Non-Firm Point-to-Point Transmission Service: As defined in the 
Tariff, is Point-to-Point Transmission Service under the Tariff that is 
reserved and scheduled on an as-available basis and is subject to 
Curtailment or Interruption as set forth in Section 14.7 under Part II 
of the Tariff. Non-Firm Point-to-Point Transmission Service is 
available on a stand-alone basis for periods ranging from one hour to 
one month. The Transmission provider may offer Non-Firm Point-to-Point 
Transmission Service for periods longer than one month. If offered, the 
terms and conditions will be consistent with Part II of the Tariff and 
will be posted on the Transmission Provider's OASIS.
    OASIS: As defined in WAPA's OATT, is Open Access Same-Time 
Information System. The information system and standards of conduct 
contained in Part 37 of FERC's regulations and all additional 
requirements implemented by subsequent FERC orders dealing with OASIS.
    OATT: The Open Access Transmission Tariff or `OATT', including all 
schedules or attachments thereto, of the Transmission Provided as 
amended from time to time, and approved by the Commission.
    OM&R: Operation, Maintenance, and Replacements expense refers to 
the annual expense incurred for attending/servicing/replacement of 
power and transmission lines and facilities.
    Preference: As defined in Central Valley Project's 2025 Marketing 
Plan, is the requirements of Reclamation Law that provide for 
preference in the sale of Federal power be given to certain entities, 
such as governments (state, Federal and Native American), 
municipalities and other public corporations or agencies, and 
cooperatives and other nonprofit organizations financed in whole or in 
part by loans made pursuant to the Rural Electrification Act of 1936 
(See, e.g., Reclamation Project Act of 1939, Section 9(c), 43 U.S.C. 
485h(c)).
    Point-to-Point Transmission Service: As defined in WAPA's OATT, is 
the reservation and transmission of capacity and energy on either a 
firm or non-firm basis from the Point(s) of Receipt to the Point(s) of 
Delivery under Part II of the Tariff.
    Project Use: As defined in Central Valley Project's 2025 Marketing 
Plan, is power as defined by Reclamation Law and/or used to operate CVP 
and Washoe Project facilities.
    Power: As defined in Central Valley Project's 2025 Marketing Plan, 
is capacity and energy.
    Provisional Formula Rates: The formula rates confirmed, approved, 
and placed into effect on an interim basis by the Deputy Secretary of 
Energy or his designee.
    PRR: Power Revenue Requirement is revenue required by the PRS to 
recover annual expenses (such as operation and maintenance, purchase 
power, transmission service expenses, interest, and deferred expenses) 
and repay Federal investments and other assigned costs.

[[Page 11515]]

    PRS: Power Repayment Study, as defined in DOE Order RA 6120.2 and 
used for the rate adjustment period, is a tool used to determine if the 
projected power revenue for each project is adequate to meet the annual 
revenue requirement. The PRS is used to calculate how much revenue is 
needed to meet annual investment obligations, O&M expenses, and 
repayment requirements (including repayment periods).
    Rate: As defined in WAPA's OATT, means the monetary charge or the 
formula for computing such a charge for any electric service provided a 
Transmission Provider as defined in 10 CFR part 903.
    Rate Adjustment: As defined in WAPA's OATT, means a change in an 
existing rate or rates, or the establishment of a rate or rates for a 
new service. It does not include a change in rate schedule provisions 
or in contract terms, other than changes in the price per unit of 
service, nor does it include changes in the monetary charge pursuant to 
a formula stated in a rate schedule or a contract as defined in 10 CFR 
part 903.
    Rate Formula Adjustment: As defined in WAPA's OATT, means a change 
in an existing rate formula, or the establishment of a rate formula for 
a new service. It does not include updates to the monetary charge 
pursuant to a formula stated in a rate schedule or a contract.
    Rate Brochure: A document prepared for public distribution 
explaining the rationale and background for the information contained 
in this rate order.
    Reclamation: United States Department of the Interior; Bureau of 
Reclamation, and formerly the United States Reclamation Service.
    Reclamation Law: As defined in WAPA's 2025 Marketing Plan, refers 
to a series of Federal laws with a lineage dating back to the late 
1800s. Viewed as a whole, those laws create the framework under which 
WAPA markets CVP power.
    Regulation: As defined in CAISO's Tariff, is the service provided 
either by resources certified by the CAISO as equipped and capable of 
responding to the CAISO's direct digital control signals, or by System 
Resources that have been certified by the CAISO as capable of 
delivering such service to the CAISO BAA, in an upward and downward 
direction to match, on a Real-Time basis, Demand and resources, 
consistent with established NERC and WECC reliability standards and any 
requirements of the Nuclear Regulatory Commission, or its successor. 
Regulation is used to control the operating level of a resource within 
a prescribed area in response to a change in system frequency, tie line 
loading, or the relation of these to each other so as to maintain the 
target system frequency and/or the established Interchange with other 
BAAs within the predetermined Regulation Limits. Regulation includes 
both an increase in Energy production by a resource or decrease in 
Energy consumption by a resource (Regulation Up) and a decrease in 
Energy production by a resource or increase in Energy consumption by a 
resource (Regulation Down). Regulation Up and Regulation Down are 
distinct capacity products, with separately stated requirements and 
Ancillary Service Marginal Pricings in each Settlement Period.
    Resource Sufficiency: CAISO defines and proposes resource 
sufficiency evaluation require all BAAs offer sufficient resources to 
meet their bid-in demand, reliability capacity to meet forecasted net 
load, provide ramp capability to meet their 24-hour net demand 
variation, and their forecasted ancillary service and imbalance reserve 
requirements (adjusted for diversity benefit).
    Short-Term Firm Point-to-Point Transmission Service: As defined in 
WAPA's OATT, is Firm Point-to-Point Transmission Service under Part II 
of the Tariff with a term of less than one year.
    Sub-BAA: As defined in WAPA's OATT, is Sub-Balancing Authority 
Area. An electric power system operating within a host BAA that is 
bounded by meters and is responsible for BAA-like performance of 
generation, load, and transmission. WAPA-SN is a Sub-BAA within the 
BANC BAA.
    Tariff: As defined in WAPA's OATT, is the Open Access Transmission 
Tariff or `OATT', including all schedules or attachments thereto, of 
the Transmission Provided as amended from time to time, and approved by 
the Commission.
    TO: As defined in WAPA's OATT, means Transmission Owner and is the 
entity that owns, leases or otherwise possesses an interest in the 
portion of the Transmission System at the Point of Interconnection and 
may be a Party to the Small Generator Interconnection Agreement to the 
extent necessary.
    Transmission Customer: As defined in WAPA's OATT, is any Eligible 
Customer (or its Designated Agent) that (i) executes a Service 
Agreement, or (ii) requests in writing that the Transmission Provider 
provide transmission service without a Service Agreement, pursuant to 
section 15.3 of the Tariff. This term is used in the Part I Common 
Service Provisions to include customers receiving transmission service 
under Part II and Part III of this Tariff.
    Transmission Provider: As defined in WAPA's OATT, is the Regional 
Office of the WAPA that owns, controls, or operates the facilities used 
for the transmission of electric energy in interstate commerce and 
provides transmission service under the Tariff.
    Transmission System: As defined in WAPA's OATT, is the facilities 
owned, controlled, or operated by the Transmission Provider that are 
used to provide transmission service under Part II and Part III of the 
Tariff.
    UIE: As defined in WAPA's OATT, Attachment S, is Uninstructed 
Imbalance Energy. Settlement charges incurred by the Transmission 
Provider on behalf of Transmission Customers due to uninstructed 
deviations of supply or demand.
    WAPA: United States Department of Energy, Western Area Power 
Administration.
    WAPA-SN: United States Department of Energy, Western Area Power 
Administration, Sierra Nevada Region.
    WECC: The Western Electricity Coordinating Council.
    Webex: The Webex is an online secure by invite only meeting 
platform used by WAPA. The general website is https://doe.webex.com.
    Website: WAPA's public online source for resources at https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2021-WAPA-194.aspx.

Effective Date

    The Provisional Formula Rates, under Rate Schedules CV-EIM1S, CV-
EIM4S, CV-EIM9S, and CV-SSP2, are effective on March 25, 2021, and will 
remain in effect through December 31, 2024, pending confirmation and 
approval by FERC on a final basis or until superseded. The Provisional 
Formula Rates, under Rate Schedules CV-EID5 and CV-GID2, are effective 
on the first day of the first full billing period after March 25, 2021, 
and will remain in effect through December 31, 2024, pending 
confirmation and approval by FERC on a final basis or until superseded.

Public Notice and Comment

    WAPA followed the Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these formula rates. WAPA took steps to involve interested 
parties in the rate process:
    1. On July 31, 2020, a Federal Register notice (85 FR 46083) 
(Proposal

[[Page 11516]]

FRN) announced the proposed formula rates and launched a 90-day public 
consultation and comment period.
    2. On July 31, 2020, WAPA notified Preference Customers and 
interested parties of the proposed rates and provided a copy of the 
Proposal FRN.
    3. On August 17, 2020, WAPA held a public information forum via 
Webex. WAPA's representatives explained the proposed Formula Rates, 
answered questions, and gave notice that more information was available 
in the customer rate brochure.
    4. On August 17, 2020, WAPA held a public comment forum via Webex 
to provide an opportunity for customers and other interested parties to 
comment for the record.
    5. WAPA provided a website that contains all dates, customer 
letters, presentations, FRNs, customer Rate Brochure, and other 
information about this rate process. The website is located at https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2021-WAPA-194.aspx.
    6. During the 90-day consultation and comment period, which ended 
on October 29, 2020, WAPA received twelve oral comments and one written 
comment. The comments and WAPA's responses are addressed below. All 
comments have been considered in the preparation of this Rate Order.
    Oral comments were received from the following organizations:

Balancing Authority of Northern California (BANC), California
University of California (UC) Davis, California
Northern California Power Agency (NCPA), California
Modesto Irrigation District (MID), California
Turlock Irrigation District (TID), California
City of Redding (REU), California

    Written comments were received from the following organization:

Northern California Power Agency (NCPA), California

Supplementary Information

    WAPA will participate in EIM, as a Transmission Provider, within 
BANC's BAA. To recover all imbalance costs, WAPA will need rates for: 
(1) EIM Administrative Service (CV-EIM1S), (2) EIM EI Service (CV-
EIM4S), and (3) EIM GI Service (CV-EIM9S). The new EIM Administrative 
Services Provisional Formula Rate (CV-EIM1S) will allow WAPA to pass 
through certain administrative costs incurred by WAPA resulting from 
its participation in EIM as a Transmission Provider. The Provisional 
Formula Rates and cost allocation for Administrative, EI and GI 
Services will be in effect when WAPA is participating in EIM, and to 
the extent WAPA incurs associated settlements during market suspension 
or contingency.
    In addition to implementing new rates, WAPA revised the existing 
rates for EI Services (CV-EID4) and GI Services (CV-GID1). Since 
CAISO's EIM economically dispatches energy under CAISO's Tariff to meet 
the imbalances for loads and resources over multiple BAAs as a 
centralized, automated, and region-wide dispatch for imbalances, WAPA 
revised its settlement of EI and GI Services to settle financially 
rather than with energy. The revised EI Services (CV-EID5) and GI 
Services (CV-GID2) rate schedules apply when EIM has been suspended.
    The Provisional Formula Rate for the Sale of Surplus Products (CV-
SSP2) is a new rate. This rate makes WAPA-SN's practices consistent 
with other WAPA regions. CV-SSP2 is further discussed in the section on 
Sale of Surplus Products.
    The Provisional Formula Rates along with the existing effective 
formula rates provide WAPA with sufficient revenue to recover annual 
OM&R expenses, interest expense, aid to irrigation, and capital 
repayment requirements while ensuring repayment of the project within 
the cost recovery criteria set forth in DOE Order RA 6120.2.
    The Provisional Formula Rates under rate schedules CV-EIM1S, CV-
EIM4S, CV-EIM9S, and CV-SSP2, will go into effect on March 25, 2021, 
through December 31, 2024, or until WAPA changes the formula rates 
through another public rate process pursuant to 10 CFR part 903, 
whichever occurs first. The Provisional Formula Rates under rate 
schedules CV-EID5 and CV-GID2 will go into effect on the first day of 
the first full billing period after March 25, 2021, through December 
31, 2024, or until WAPA changes the formula rates through another 
public rate process pursuant to 10 CFR part 903, whichever occurs 
first.

EIM Administrative Service Charge, CV-EIM1S

    WAPA's new rate schedule, CV-EIM1S, is applicable under Attachment 
S, Addendum 1, of WAPA's Tariff. CV-EIM1S will apply when WAPA, as 
Transmission Provider, is participating in EIM and when EIM has not 
been suspended. EIM Administrative Service and the associated rate will 
apply in addition to the services provided under Schedule 1 of WAPA's 
Tariff, which are incorporated in existing WAPA transmission service 
rates. To the extent WAPA incurs EIM Administrative Service related 
charges during periods of market suspension or contingency, as 
described in Attachment S, Section 11, of WAPA's Tariff, Schedule 1S 
and rate schedule CV-EIM1S will both apply to ensure that WAPA, as 
Transmission Provider, remains revenue-neutral for its participation in 
EIM.
    EIM Administrative Service recovers the administrative costs for 
participating in EIM by WAPA as a Transmission Provider, including, but 
not limited to, such administrative charges as may be incurred by WAPA 
from the MO and those MO charges passed through by the EIM Entity.
    Unless such charges are allocated to the Transmission Customer 
directly by the EIM Entity, all Transmission Customers purchasing Long-
Term Firm Point-to-Point Transmission Service, Short-Term Firm Point-
to-Point Transmission Service, Non-Firm Point-to-Point Transmission 
Service, or NITS from WAPA will be required to acquire EIM 
Administrative Service from WAPA.
    The MO's Administrative Service charge, as defined in the MO's 
Tariff, will be included in CV-EIM1S. This rate also includes 
administrative charges assessed to WAPA by the EIM Entity based on net 
energy load within the WAPA Sub-BAA. The new formula rate for EIM 
Administrative Service Charge will be sub-allocated to WAPA's 
Transmission Customers based on load ratio share for the time-period in 
which WAPA incurs EIM administrative costs.
    WAPA's costs for EIM start up, including software, hardware, and 
other features, to implement EIM, will not be included as 
administrative costs under this schedule. WAPA will allocate startup 
costs for EIM according to the cost allocation methodologies and 
procedures discussed under the Energy Imbalance Market Cost Allocation 
heading, below.

EIM Energy Imbalance Service, CV-EIM4S

    WAPA's new rate schedule, CV-EIM4S for Energy Imbalance Service, is 
applicable under Schedule 4S of the Tariff. CV-EIM4S will apply when 
WAPA, as Transmission Provider, is participating in EIM and when EIM 
has not been suspended. In accordance with Attachment S, Section 11, of 
WAPA's Tariff, Schedule 4 of the Tariff will apply when WAPA is not 
participating in EIM or when EIM has been suspended. To the extent WAPA 
incurs EIM EI Service related charges from the EIM Entity during 
periods of market suspension or contingency, as described in Attachment 
S, Section 11, of WAPA's

[[Page 11517]]

Tariff, Schedule 4S and rate schedule CV-EIM4S will both apply to 
ensure that WAPA, as Transmission Provider, remains revenue-neutral for 
its participation in EIM.
    EIM EI Service is provided when a difference occurs between the 
scheduled and the actual delivery of energy to a load located within 
the WAPA Sub-BAA. WAPA offers this service when transmission service is 
used to serve load within the WAPA Sub-BAA.
    Unless subsequently imposed by the MO as part of the MO Tariff and 
promulgated by WAPA through rate proceedings, there will be no 
incremental transmission charge assessed for transmission use related 
to EIM EI Service. Transmission Customers must have transmission 
service rights, as set forth in Attachment S of the Tariff.
    The formula rate for EIM EI Service, CV-EIM4S, is the deviation of 
the Transmission Customer's metered load compared to the load component 
of the Transmission Customer Base Schedule settled as UIE for the 
period of the deviation at the applicable LAP price where the load is 
located.
    Unless such charges are allocated to the Transmission Customer 
directly by the EIM Entity, a Transmission Customer will be responsible 
for any pass-through charges/credits associated with applicable EIM EI 
Service charges allocated to WAPA, as Transmission Provider, for its 
participation in the EIM, in accordance with this rate schedule. WAPA 
will sub-allocate load charges based on a Transmission Customer's load 
ratio share.

EIM Generator Imbalance Service, CV-EIM9S

    EIM GI Service is provided when a difference occurs between the 
output of a generator that is not an EIM Participating Resource located 
in the WAPA Sub-BAA, as reflected in the resource component of the 
Transmission Customer Base Schedule, and the delivery schedule from 
that generator to: (1) Another BAA, (2) the BANC BAA, or (3) a load 
within the WAPA Sub-BAA. The EIM Entity does not allow EIM Non-
Participating Resources.
    WAPA's new rate schedule, CV-EIM9S, is applicable under Schedule 9S 
of the Tariff. CV-EIM9S will apply when WAPA, as Transmission Provider, 
is participating in EIM and when EIM has not been suspended. In 
accordance with Attachment S, Section 11, of WAPA's Tariff, Schedule 9 
and CV-EIM9S will both apply when WAPA is not participating in the EIM 
and when the EIM has been suspended. To the extent WAPA incurs EIM GI 
Service-related charges from the EIM Entity during periods of market 
suspension or contingency, as described in Attachment S, Section 11, of 
WAPA's Tariff, Schedule 9S and CV-EIM9S will both apply to ensure that 
WAPA, as Transmission Provider, remains revenue-neutral for its 
participation in EIM.
    Unless subsequently imposed by the MO as part of the MO Tariff and 
promulgated by WAPA through rate proceedings, there will be no 
incremental transmission charge assessed for transmission use related 
to EIM GI Service. Transmission Customers must have transmission 
service rights, as set forth in Attachment S of the Tariff.
    EIM GI Services does not have a direct rate component for EIM GI 
Services for EIM Non-Participating Resources. WAPA expects all EIM 
Participating Resources to directly settle with CAISO. However, if 
charges are allocated to the Transmission Provider by the EIM Entity, a 
Transmission Customer will be responsible for any pass-through charges/
credits associated with applicable EIM GI Service charges allocated to 
WAPA, as Transmission Provider, for its participation in EIM, in 
accordance with CV-EIM9S. Such charges will be included due to 
operational adjustments of any affected interchange. WAPA will directly 
assign charges and/or sub-allocate charges based on the Transmission 
Customer's load ratio share. In the event the EIM Entity modifies its 
procedures to allow EIM Non-Participating Resources, WAPA will update 
CV-EIM9S.

Energy Imbalance Service, CV-EID5

    WAPA revised its existing rate schedule for EI Services, CV-EID4, 
to settle charges financially rather than with energy. Component one to 
the EI schedule states: ``EI Service is applied to deviations as 
follows unless otherwise dictated by contract or policy: (1) Deviations 
within the bandwidth will be tracked and settled financially at the 
greater of the California Independent System Operator market price or 
WAPA's actual cost.'' The revised EI Services rate schedule, CV-EID5, 
will remain in effect when EIM has been suspended.

Generator Imbalance Service, CV-GID2

    WAPA revised its existing rate schedule for GI Services, CV-GID1, 
to settle charges financially rather than with energy. Component one to 
the GI schedule states: ``GI is applied to deviations as follows unless 
otherwise dictated by contract or policy: (1) Deviations within the 
bandwidth will be tracked and settled financially at the greater of the 
California Independent System Operator market price or WAPA's actual 
cost.'' The GI schedule further adds to component one: ``to the extent 
that an entity incorporates intermittent resources, deviations will be 
charged as follows unless otherwise dictated by contract or policy: (1) 
Deviations within the bandwidth will be tracked and settled financially 
at the greater of the California Independent System Operator market 
price or WAPA-SN's actual cost.'' The revised GI Services rate 
schedule, CV-GID2, will apply when EIM has been suspended.

Sale of Surplus Products (SSP), CV-SSP2

    WAPA's new rate schedule, CV-SSP2, is applicable for the sale of 
surplus energy and/or capacity products. This includes: (1) Energy, (2) 
Frequency Response, (3) Regulation, (4) Reserves, and (5) Resource 
Sufficiency. If any surplus products are available, WAPA may make the 
product(s) available for sale, provided entities enter into separate 
agreement(s), which will specify the terms of sale(s).
    WAPA will determine the charge for each product at the time of sale 
to be the greater of WAPA's cost or market rates including transmission 
charges, as appropriate. WAPA may use a separate agreement(s) to 
specify the terms of sale(s). The customer will be responsible for 
acquiring additional transmission service necessary to deliver the 
product(s), for which a separate charge may be incurred from the 
transmission provider(s).
    SSP includes two new products for sale: FRR and Resource 
Sufficiency. FRR is a new product requirement based on Reliability 
Standard BAL-003-1.1, as approved by NERC. FRR is used to serve load 
immediately in the event of a system contingency. Generating units that 
are on-line and generating at less than maximum output provides these 
reserves. FRR supplies capacity that is available immediately to serve 
load and is synchronized with the power system. BANC implemented this 
requirement in January 2021, and WAPA therefore will include this FRR 
service under rate schedule CV-SSP2.\6\
---------------------------------------------------------------------------

    \6\ As discussed in footnote 1, BANC accelerated the 
implementation of FRR, which was originally scheduled to take effect 
in April 2021. WAPA proposed to include FRR service under the 
proposed rate for SSP, as discussed in the July 31, 2020, Federal 
Register notice. To accommodate BANC's accelerated schedule, WAPA 
implemented a rate for the short term sale of SSP (which included 
FRR) CV-SSP-1, with an effective date of January 7, 2021. CV-SSP-2 
will supersede CV-SSP-1.

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

[[Page 11518]]

    Resource Sufficiency product supplies capacity to aid with EIM 
balancing resources to load forecast, and flexible ramping for aid with 
EIM 15-minute ramp up or down. WAPA bids energy into the EIM market for 
immediate dispatch. Resource Sufficiency is not a spin or regulation 
product. It is a new product available to BANC EIM members as a 
balancing or flexible ramping product. WAPA's Merchant handles the sale 
and bidding of the products in EIM, which may result in adjustments to 
the EIM Transmission Customer Base Schedule market submission or bid 
ranges.

Energy Imbalance Market Cost Allocation

    WAPA's EIM cost allocation methodology for EIM implementation costs 
and net EIM ongoing charges and/or benefits will be allocated to the 
CVP PRR, with an exception for Non-Conforming Loads which will be 
directly charged to the customer. BANC's, WAPA's, and Reclamation's EIM 
implementation costs will be recovered over a period not to exceed 
three years. WAPA has identified four separate categories to allocate 
ongoing charges and/or benefits: (1) Conforming Loads; (2) Non-
Conforming Loads; (3) small loads; and (4) statutory loads.
    A Conforming Load is a type of load generally associated with a 
weather-based element, which is somewhat predictable based on given 
conditions. For Conforming Loads, WAPA will allocate the net EIM 
ongoing cost and/or net benefits to the CVP PRR.
    A Non-Conforming Load changes abnormally--such as a factory that 
consumes high demand intermittently. For Non-Conforming Loads, WAPA 
will allocate the net EIM ongoing charges and/or benefits directly to 
the customer(s) with the Non-Conforming Load(s), in accordance with 
WAPA's applicable draft business practice, BP-44 ``Energy Imbalance 
Market Settlements,'' posted on its OASIS, or at https://www.oasis.oati.com/woa/docs/WASN/WASNdocs/Energy_Imbalance_Market_Settlements_Clean_v1.1.pdf.
    EIM implementation costs and net ongoing costs will be allocated to 
the CVP PRR for customers with small loads less than one MW. WAPA will 
assign load charges and benefits for those customers with statutory 
obligations, such as project use, to the CVP PRR. Customers with small 
loads or with statutory obligations will not directly pay nor benefit 
from EIM charges.

Comments

    WAPA received twelve oral comments and one written comment during 
the public consultation and comment period. The comments expressed have 
been paraphrased, where appropriate, without compromising the meaning 
of the comments.
    A. Comment: Commenter from BANC provided clarification regarding 
WAPA's share of BANC's annual ongoing costs for EIM. The commenter 
explained the annual cost presented, approximately $376,597 per year, 
is a little low as it is based on 9 calendar months, not a whole year. 
WAPA's share of BANC's annual ongoing costs for a full year will be 
approximately $417,000 per year.
    Response: WAPA agreed to update the estimated cost information to 
reflect ongoing costs of approximately $417,000 per year.
    B. Comment: Commenter asked whether there are savings associated 
with implementation of EIM and, if so, where WAPA will account for the 
savings in the PRR.
    Response: EIM costs and benefits will be allocated to the PRR. WAPA 
anticipates the annual benefits to exceed the annual costs beginning in 
FY 2022, after the BANC EIM implementation costs are fully expensed.
    C. Comment: Commenter asked whether WAPA or Reclamation plan to 
hire additional staff to support the implementation of EIM, or if the 
implementation costs are just a shift from other activities. Commenter 
asked whether the current staff will be charged to EIM.
    Response: No additional staff will be needed. EIM activities will 
be absorbed as part of WAPA's current labor staff. WAPA has separate 
labor codes for EIM. WAPA employees will record their time to the EIM 
specific labor codes. WAPA will be providing EIM cost/benefit 
information at future customer meetings.
    D. Comment: Commenter requested clarification regarding EIM 
implementation and ongoing costs not being charged to the PRR until 
after the rate proceedings. Commenter asked whether customers would 
begin paying in October 2020.
    Response: The costs will be included in the FY 2021 PRR, which is 
for the period October 2020 through September 2021. The costs are 
included in the PRR at the beginning of FY 2021 to allow a full 12 
months to recover the implementation costs. WAPA recovers such costs 
under its current rates. If there are revisions made to the proposed 
allocation of EIM implementation costs, WAPA will provide an adjustment 
to the PRR as needed to reflect the revisions. The estimated EIM costs 
are included in the 10-year PRR forecast posted to WAPA's website.
    E. Comment: Commenter asked how often WAPA will monitor the costs 
and benefits of participation in EIM. Commenter asked whether, if the 
costs are greater than the benefits, WAPA will stop participating in 
EIM.
    Response: WAPA expects the annual financial benefits of EIM to 
exceed annual costs, but EIM also brings intangible benefits. WAPA will 
closely monitor the costs and benefits and will share information at 
future customer meetings.
    F. Comment: Commenter asked whether the 3-year rolling average of 
the net energy load percentage (used for determining participating 
entities share of BANC ongoing costs) is an ongoing rolling average for 
prospective costs.
    Response: Yes, this is a prospective 3-year rolling average.
    G. Comment: Commenter asked where Turlock Irrigation District (TID) 
fits within the Conforming and Non-Conforming Loads in WAPA's 
footprint, and noted that currently, TID has a Base Resource percentage 
it pays. Commenter asked whether this would remain the same. The 
commentor asked whether the Provisional Rates for EIM directly apply to 
TID.
    Response: WAPA Merchant Customers (such as TID) will be impacted by 
the Tier 2 allocation of EIM costs and benefits that are applied to the 
PRR and will share in the costs and benefits based on Base Resource 
percentages. The Provisional Rates for EIM do not directly apply to TID 
since TID does not take transmission service under the WAPA Tariff.
    H. Comment: Commenter asked WAPA to clarify which customers 
identified on slide 15 of WAPA's public information forum presentation 
represents the 8.6% of WAPA's net energy load, and of those customers, 
which are considered Conforming or Non-Conforming Loads. Commenter 
asked whether there is a process for tracking those costs.
    Response: All of the customers identified on slide 15 represent 
WAPA's 8.6% net energy load, and all are Conforming Loads, except for 
Lawrence Livermore National Labs (LLNL) and project use. LLNL and 
project use are considered non-conforming loads. LLNL will be directly 
charged for all EIM costs related to their non-conforming loads. 
Project use will not be charged, as it does not share in the costs or 
benefits of EIM. The process for the allocation of

[[Page 11519]]

Tier 1 costs is described in Business Practice-44 (BP44) posted on 
OASIS. The presentation is posted on WAPA's website at https://www.wapa.gov/regions/SN/rates/Documents/wapa-194-eim-public-information-forum-presentation-2020-08-13.pdf.
    I. Comment: Commenter noted that slide 40 of the WAPA public 
information forum presentation states that charge code 4575 will be 
allocated based on load ratio share; however, slide 47 states that it 
will be allocated based on simple division by five.
    Response: For charge code 4575 from BANC, as the EIM Entity, the 
scheduling coordinator charges are allocated based on load ratio share, 
as described on slide 40. For charge code 4575 from WAPA, as a EIM 
Participating Resource, the scheduling coordinator charges are 
allocated by number of resource identifications, as described on slide 
47. The presentation is posted on WAPA's website at https://www.wapa.gov/regions/SN/rates/Documents/wapa-194-eim-public-information-forum-presentation-2020-08-13.pdf.
    J. Comment: Commenter asked whether, as described on slide 39 of 
the WAPA public information forum presentation, regarding changes at 
the intertie after T-57, Tracy Pump would be different than its load. 
Comment asked whether WAPA has a sense of how often that would happen. 
Commenter also asked how on slide 41 the first three costs are 
allocated since there is no applicable rate schedule, and whether, if 
it is not a rate schedule, it is pursuant to a business process.
    Response: Slide 39 does not apply to Tracy Pump. Only Conforming 
Loads are submitted to CAISO through BANC as the EIM Entity. Tracy Pump 
is not a generator nor is it at an intertie. Tracy Pump is a Non-
Conforming Load modeled as a non-generator resource. Since Tracy Pump 
is the load, it will not be different than its load. The first three 
charge codes in the table on slide 41 are related to BANC 
administrative charges. BANC administrative charges are not recovered 
under the EIM Rate Schedules because they are determined to be specific 
to WAPA's generation and load participation in EIM. They are recovered 
as a cost on the annual PRR. The presentation is posted on the WAPA's 
website at https://www.wapa.gov/regions/SN/rates/Documents/wapa-194-eim-public-information-forum-presentation-2020-08-13.pdf.
    K. Comment: Commenter asked whether the simulations WAPA performed 
to measure Sub-Balancing Area resources and demand in EIM consider the 
limitations on hydrology in terms of managing levels.
    Response: WAPA attempted to capture the limitations of hydrology by 
applying the caps. For the EIM dispatches, WAPA used a cap of 50 MWh 
per hour, 300 MWh/day, and 600 MWh/week. In the simulation, if the 
resource is continually receiving incremental (or decremental) dispatch 
during the day, WAPA capped that to 300 MWh, then assumed that bidding 
is put on hold until the resource receives a decremental (or 
incremental) dispatch. At the end of the day, the resource can 
potentially be in a net positive or negative energy position. The 600 
MWh cap for the week is applied similarly to the 300 MWh cap that is in 
place for the day.
    L. Comment: Commenter asked whether the information on slide 86 of 
the WAPA public information forum presentation, in regard to the 11 MW 
of FR, describes the surplus product or the Sub-BA requirement. 
Commenter asked whether there is a specific charge related to the FR 
for the SBA.
    Response: The 11 MW is the SBA requirement. WAPA will provide its 
own FR, so there would not be a charge from BANC. If WAPA needed to 
purchase FR, it would be at market rates. WAPA would sell at market 
rates for the reserves and set a price for the energy similar to how 
WAPA markets spin. The presentation is posted on WAPA's website at 
https://www.wapa.gov/regions/SN/rates/Documents/wapa-194-eim-public-information-forum-presentation-2020-08-13.pdf.

Certification of Rates

    WAPA's Administrator certifies that the Provisional Formula Rates 
for the CVP and services under Rate Schedules CV-EIM1S, CV-EIM4S, CV-
EIM9S, CV-SSP2, CV-EID5, and CV-GID2 are the lowest possible rates, 
consistent with sound business principles. The Provisional Formula 
Rates were developed following administrative policies and applicable 
laws.

Availability of Information

    Information about this rate adjustment, including the customer rate 
brochure, PRSs, comments, letters, memorandums, and other supporting 
materials that were used to develop the Provisional Formula Rates, is 
available for inspection and copying at the Sierra Nevada Region, 
Western Area Power Administration, 114 Parkshore Drive, Folsom, 
California 95630. These documents are also available on WAPA's website 
at https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2021-WAPA-194.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    WAPA determined that this action fits within the class listed in 
Appendix B to Subpart D of 10 CFR part 1021.410: Categorical exclusions 
applicable to B4.3: Electric power marketing rate changes and B4.4: 
Power marketing services and activities, which do not require 
preparation of either an environmental impact statement (EIS) or an 
environmental assessment (EA).\7\ Specifically, WAPA has determined 
that this rulemaking is consistent with activities identified in B4, 
Categorical Exclusions Applicable to Specific Agency Actions (see 10 
CFR part 1021, Appendix B to Subpart D, Part B4. A copy of the 
categorical exclusion determination is available on WAPA's website at 
https://www.wapa.gov/regions/SN/environment/Pages/environment.aspx.
---------------------------------------------------------------------------

    \7\ The determination was done in compliance with the National 
Environmental Policy Act (NEPA) of 1969, as amended, 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).
---------------------------------------------------------------------------

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.

Submission to the Federal Energy Regulatory Commission

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

Order

    In view of the above and under the authority delegated to me, I 
hereby confirm, approve, and place into effect, on an interim basis, 
Rate Order No. WAPA-194. The rates will remain in effect on an interim 
basis until: (1) FERC confirms and approves them on a final basis; (2) 
subsequent rates are confirmed and approved; or (3) such rates are 
superseded.

Signing Authority

    This document of the Department of Energy was signed on February 
10, 2021, by Mark A. Gabriel, Administrator, Western Area Power 
Administration, pursuant to delegated authority from the Acting 
Secretary of Energy. That document, with the original signature and 
date, is

[[Page 11520]]

maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on February 19, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
Rate Schedule CV-EIM1S

United States Department of Energy

Western Area Power Administration

Central Valley Project

Schedule of Rate for Energy Imbalance Market Administrative Service 
Charge

    Effective: March 25, 2021, through December 31, 2024.
    Available: Within the marketing area served by the Western Area 
Power Administration (WAPA), Sierra Nevada Customer Service Region 
(SN).
    Applicable: This rate applies to WAPA-SN customers when WAPA-SN, as 
Transmission Provider, is participating in Energy Imbalance Market 
(EIM) and when EIM has not been suspended. To the extent WAPA-SN incurs 
EIM Administrative Service-related charges from the EIM Entity during 
periods of market suspension or contingency, this schedule also applies 
to ensure that WAPA-SN, as Transmission Provider, remains revenue-
neutral for its participation in EIM.
    Character and Conditions of Service: EIM Administrative Service 
Charge recovers the administrative costs for participating in the EIM 
by WAPA-SN as a Transmission Provider, including but not limited to 
such administrative charges as may be incurred by WAPA-SN from 
California Independent System Operator (CAISO) as the EIM Market 
Operator (MO) and/or Balancing Authority of Northern California (BANC) 
as the EIM Entity.
    Unless such charges are allocated to the Transmission Customer 
directly by BANC, all Transmission Customers purchasing Long-Term Firm 
Point-to-Point Transmission Service, Short-Term Firm Point-to-Point 
Transmission Service, Non-Firm Point-to-Point Transmission Service, or 
Network Integration Transmission Service from WAPA-SN shall be required 
to acquire EIM Administrative Service Charge from WAPA-SN.
    CAISO's Administrative Service Charge, as defined in the MO Tariff, 
is included in this rate. This rate also includes administrative 
charges assessed to WAPA-SN by BANC based on net energy load within the 
WAPA-SN Sub-Balancing Authority Area.
    Formula Rate: The formula rate for EIM Administrative Service 
Charge includes three components:
    Component 1: The EIM Administrative Service Charge will be sub-
allocated to WAPA-SN's Transmission Customers based on load ratio share 
for the time period in which WAPA-SN incurs EIM administrative costs.
    Component 2: Any charges or credits associated with the creation, 
termination, or modification to any tariff, contract, or rate schedule 
accepted or approved by the Federal Energy Regulatory Commission (FERC) 
or other regulatory bodies will be passed on to each relevant customer. 
FERC's or other regulatory bodies' accepted or approved charges or 
credits apply to the service to which this rate methodology applies. 
When possible, WAPA-SN will pass through directly to the relevant 
customer FERC's or other regulatory bodies' accepted or approved 
charges or credits in the same manner WAPA-SN is charged or credited. 
If FERC's or other regulatory bodies' accepted or approved charges or 
credits cannot be passed through directly to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Component 3: Any charges or credits from the Host Balancing 
Authority (HBA) applied to WAPA-SN for providing this service will be 
passed through directly to the relevant customer in the same manner 
WAPA-SN is charged or credited to the extent possible. If the HBA's 
charges or credits cannot be passed through to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Billing: Billing will occur monthly.
    Adjustment for Audit Adjustments: Financial audit adjustments that 
apply to the formula rate under this rate schedule will be evaluated on 
a case-by-case basis to determine the appropriate treatment for 
repayment and cash flow management.

Rate Schedule CV-EIM4S

United States Department of Energy

Western Area Power Administration

Central Valley Project

Schedule of Rate for Energy Imbalance Market Energy Imbalance Service

    Effective: March 25, 2021, through December 31, 2024.
    Available: Within the marketing area served by the Western Area 
Power Administration (WAPA), Sierra Nevada Customer Service Region 
(SN).
    Applicable: This rate applies to WAPA-SN customers receiving Energy 
Imbalance (EI) Service when WAPA-SN, as Transmission Provider, is 
participating in Energy Imbalance Market (EIM) and when EIM has not 
been suspended. To the extent WAPA-SN incurs EIM EI Service-related 
charges from the EIM Entity during periods of market suspension or 
contingency, this schedule will also apply to ensure that WAPA-SN, as 
Transmission Provider, remains revenue-neutral for its participation in 
EIM.
    Character and Conditions of Service: EI Service is provided when a 
difference occurs between the scheduled and the actual delivery of 
energy to a load located within the WAPA-SN Sub-Balancing Authority 
Area (Sub-BAA). WAPA-SN offers this service when transmission service 
is used to serve load within the WAPA-SN Sub-BAA.
    Unless subsequently imposed by California Independent System 
Operator (CAISO) as the Market Operator (MO) as part of the MO Tariff 
and promulgated by WAPA through rate proceedings, there shall be no 
incremental transmission charge assessed for transmission use related 
to the EIM. Transmission Customers must have transmission service 
rights, as set forth in Attachment S of WAPA's Tariff.
    Formula Rate: The formula rate for EI Service includes three 
components:
    Component 1: EI Service is the deviation of the Transmission 
Customer's metered load compared to the load component of the 
Transmission Customer Base Schedule settled as Uninstructed Imbalance 
Energy (UIE) for the period of the deviation at the applicable Load 
Aggregation Point (LAP) price where the load is located.
    Unless such charges are allocated to the Transmission Customer 
directly by Balancing Authority of Northern California (BANC) as the 
EIM Entity, a Transmission Customer will be responsible for any pass-
through charges and/or credits associated with applicable EI Service 
charges allocated to WAPA-SN, as Transmission Provider, for its 
participation in the

[[Page 11521]]

EIM, in accordance with this rate schedule. WAPA-SN will sub-allocate 
load charges based on a Transmission Customer's load ratio share.
    Component 2: Any charges or credits associated with the creation, 
termination, or modification to any tariff, contract, or rate schedule 
accepted or approved by the Federal Energy Regulatory Commission (FERC) 
or other regulatory bodies will be passed on to each relevant customer. 
FERC's or other regulatory bodies' accepted or approved charges or 
credits apply to the service to which this rate methodology applies. 
When possible, WAPA-SN will pass through directly to the relevant 
customer FERC's or other regulatory bodies' accepted or approved 
charges or credits in the same manner WAPA-SN is charged or credited. 
If FERC's or other regulatory bodies' accepted or approved charges or 
credits cannot be passed through directly to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Component 3: Any charges or credits from the Host Balancing 
Authority (HBA) applied to WAPA-SN for providing this service will be 
passed through directly to the relevant customer in the same manner 
WAPA-SN is charged or credited to the extent possible. If the HBA's 
charges or credits cannot be passed through to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Billing: Billing will occur monthly.
    Adjustment for Audit Adjustments: Financial audit adjustments that 
apply to the formula rate under this rate schedule will be evaluated on 
a case-by-case basis to determine the appropriate treatment for 
repayment and cash flow management.

Rate Schedule CV-EIM9S

United States Department of Energy

Western Area Power Administration

Central Valley Project

Schedule of Rate for Energy Imbalance Market Generator Imbalance 
Service

    Effective: March 25, 2021, through December 31, 2024.
    Available: Within the marketing area served by the Western Area 
Power Administration (WAPA), Sierra Nevada Customer Service Region 
(SN).
    Applicable: This rate applies to WAPA-SN customers receiving 
Generator Imbalance (GI) Service when WAPA-SN, as Transmission 
Provider, is participating in Energy Imbalance Market (EIM) and when 
EIM has not been suspended. To the extent WAPA-SN incurs EIM GI 
Service-related charges from the EIM Entity during periods of market 
suspension or contingency, this schedule will also apply to ensure that 
WAPA-SN, as Transmission Provider, remains revenue-neutral for its 
participation in EIM.
    Character and Conditions of Service: GI Service is provided when a 
difference occurs between the output of EIM Non-Participating Resource 
located in the WAPA-SN Sub-Balancing Authority (Sub-BAA), as reflected 
in the resource component of the Transmission Customer Base Schedule, 
and the delivery schedule from that generator to (1) another BAA, (2) 
the Balancing Authority of Northern California (BANC) BAA, or (3) a 
load within the WAPA-SN Sub-BAA.
    Unless subsequently imposed by California Independent System 
Operator (CAISO) as the Market Operator (MO) as part of the MO Tariff 
and promulgated by WAPA through rate proceedings, there shall be no 
incremental transmission charge assessed for transmission use related 
to the EIM. Transmission Customers must have transmission service 
rights, as set forth in Attachment S of WAPA's Tariff.
    Formula Rate: The formula rate for GI Service includes three 
components:
    Component 1: Unless such charges are allocated to the Transmission 
Customer directly by BANC as the EIM Entity, a Transmission Customer 
shall be responsible for any pass-through charges and/or credits 
associated with applicable GI Service charges allocated to WAPA-SN, as 
Transmission Provider, for its participation in EIM, in accordance with 
this rate schedule. Such charges will be included due to operational 
adjustments of any affected Interchange. WAPA-SN will directly assign 
charges and/or sub-allocate charges based on the Transmission 
Customer's load ratio share.
    Component 2: Any charges or credits associated with the creation, 
termination, or modification to any tariff, contract, or rate schedule 
accepted or approved by the Federal Energy Regulatory Commission (FERC) 
or other regulatory bodies will be passed on to each relevant customer. 
FERC's or other regulatory bodies' accepted or approved charges or 
credits apply to the service to which this rate methodology applies. 
When possible, WAPA-SN will pass through directly to the relevant 
customer FERC's or other regulatory bodies' accepted or approved 
charges or credits in the same manner WAPA-SN is charged or credited. 
If FERC's or other regulatory bodies' accepted or approved charges or 
credits cannot be passed through directly to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Component 3: Any charges or credits from the Host Balancing 
Authority (HBA) applied to WAPA-SN for providing this service will be 
passed through directly to the relevant customer in the same manner 
WAPA-SN is charged or credited to the extent possible. If the HBA's 
charges or credits cannot be passed through to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Billing: Billing will occur monthly.
    Adjustment for Audit Adjustments: Financial audit adjustments that 
apply to the formula rate under this rate schedule will be evaluated on 
a case-by-case basis to determine the appropriate treatment for 
repayment and cash flow management.
Rate Schedule CV-SSP2
(Supersedes Schedule CV-SSP1)

United States Department of Energy

Western Area Power Administration

Central Valley Project

Schedule of Rate for Sale of Surplus Products

    Effective: March 25, 2021, through December 31, 2024.
    Available: Within the marketing area served by the Western Area 
Power Administration (WAPA), Sierra Nevada Customer Service Region 
(SN).
    Applicable: To WAPA-SN customers participating in the Sale of 
Surplus Products.
    Character and Conditions of Service: Sale of Surplus Products 
occurs when there is a sale of surplus energy and/or capacity products. 
This includes: (1) Energy, (2) Frequency Response, (3) Regulation, (4) 
Reserves, and (5) Resource Sufficiency. If any of the surplus products 
are available, WAPA-SN could make the product(s) available for sale, 
provided entities enter into separate agreement(s) which will specify 
the terms of the sale(s).
    Formula Rate:The formula rate for Sale of Surplus Products service 
includes three components:
    Component 1: WAPA-SN will determine the charge for each product at 
the time of sale to be the greater of WAPA-SN's cost or market rates, 
to include transmission charges. WAPA-SN will use a separate 
agreement(s) to specify the terms of sale(s). The

[[Page 11522]]

customer may be responsible for acquiring additional transmission 
service if necessary to deliver the product(s), for which a separate 
charge may be incurred from the transmission provider.
    Component 2: Any charges or credits associated with the creation, 
termination, or modification to any tariff, contract, or rate schedule 
accepted or approved by the Federal Energy Regulatory Commission (FERC) 
or other regulatory bodies will be passed on to each relevant customer. 
FERC's or other regulatory bodies' accepted or approved charges or 
credits apply to the service to which this rate methodology applies. 
When possible, WAPA-SN will pass through directly to the relevant 
customer FERC's or other regulatory bodies' accepted or approved 
charges or credits in the same manner WAPA-SN is charged or credited. 
If FERC's or other regulatory bodies' accepted or approved charges or 
credits cannot be passed through directly to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Component 3: Any charges or credits from the Host Balancing 
Authority (HBA) applied to WAPA-SN for providing this service will be 
passed through directly to the relevant customer in the same manner 
WAPA-SN is charged or credited to the extent possible. If the HBA's 
charges or credits cannot be passed through to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Billing: The formula rate above will be applied to the Sale of 
Surplus product(s) sold. Billing will occur monthly.
    Adjustment for Audit Adjustments: Financial audit adjustments that 
apply to the formula rate under this rate schedule will be evaluated on 
a case-by-case basis to determine the appropriate treatment for 
repayment and cash flow management.

Rate Schedule CV-EID5
(Supersedes Schedule CV-EID4)

United States Department of Energy

Western Area Power Administration

Central Valley Project

Schedule of Rate for Energy Imbalance Service

    Effective: The first day of the first full billing period after 
March 25, 2021, through December 31, 2024.
    Available: Within the marketing area served by the Western Area 
Power Administration (WAPA), Sierra Nevada Customer Service Region 
(SN).
    Applicable: To customers receiving Energy Imbalance (EI) Service.
    Character and Conditions of Service: EI Service is provided when a 
difference occurs between the scheduled and the actual delivery of 
energy to a load within the Sub-Balancing Authority (SBA) over an hour 
or in accordance with approved policies and procedures. The deviation, 
in megawatts, is the net scheduled amount of energy minus the net 
metered (actual delivered) amount.
    EI Service uses the deviation bandwidth that is established in the 
service agreement or Interconnected Operations Agreements.
    Formula Rate: The formula rate for EI Service includes three 
components:
    Component 1: EI Service is applied to deviations as follows unless 
otherwise dictated by contract or policy: (1) Deviations within the 
bandwidth will be tracked and settled financially, at the greater of 
the California Independent System Operator (CAISO) market price, or 
WAPA-SN's actual cost; (2) negative deviations (under-delivery), 
outside the deviation bandwidth, will be charged the greater of 150-
percent of the CAISO market price or 150-percent of WAPA-SN's actual 
cost; and (3) positive deviations (over-delivery), outside the 
deviation bandwidth, will be lost to the system, except for any hour 
when WAPA-SN incurs a cost to dispose of the energy, in which event the 
responsible party will bear that cost.
    Deviations that occur as a result of actions taken to support 
reliability will be resolved in accordance with existing contractual 
requirements. Such actions include reserve activations or uncontrolled 
event responses as directed by the responsible reliability authority 
such as SBA, Host Balancing Authority (HBA), Reliability Coordinator, 
or Transmission Operator.
    Component 2: Any charges or credits associated with the creation, 
termination, or modification to any tariff, contract, or rate schedule 
accepted or approved by the Federal Energy Regulatory Commission (FERC) 
or other regulatory bodies will be passed on to each relevant customer. 
FERC's or other regulatory bodies' accepted or approved charges or 
credits apply to the service to which this rate methodology applies. 
When possible, WAPA-SN will pass through directly to the relevant 
customer FERC's or other regulatory bodies' accepted or approved 
charges or credits in the same manner WAPA-SN is charged or credited. 
If FERC's or other regulatory bodies' accepted or approved charges or 
credits cannot be passed through directly to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Component 3: Any charges or credits from the HBA applied to WAPA-SN 
for providing this service will be passed through directly to the 
relevant customer in the same manner WAPA-SN is charged or credited to 
the extent possible. If the HBA's charges or credits cannot be passed 
through to the relevant customer in the same manner WAPA-SN is charged 
or credited, the charges or credits will be passed through using 
Component 1 of the formula rate.
    Billing: Billing for negative deviations outside the bandwidth, or 
as otherwise required, will occur monthly.
    Adjustment for Audit Adjustments: Financial audit adjustments that 
apply to the formula rate under this rate schedule will be evaluated on 
a case-by-case basis to determine the appropriate treatment for 
repayment and cash flow management.

Rate Schedule CV-GID2
(Supersedes Schedule CV-GID1)

United States Department of Energy

Western Area Power Administration

Central Valley Project

Schedule of Rate for Generator Imbalance Service

    Effective: The first day of the first full billing period after 
March 25, 2021, through December 31, 2024.
    Available: Within the marketing area served by the Western Area 
Power Administration (WAPA), Sierra Nevada Customer Service Region 
(SN).
    Applicable: To generators receiving Generator Imbalance (GI) 
Service.
    Character and Conditions of Service: GI Service is provided when a 
difference occurs between the scheduled and actual delivery of energy 
from an eligible generation resource within the Sub-Balancing Authority 
(SBA), over an hour, or in accordance with approved policies. The 
deviation in megawatts is the net scheduled amount of generation minus 
the net metered output from the generator's (actual generation) amount.
    GI Service is subject to the deviation bandwidth established in the 
service agreement or Interconnected Operations Agreements.
    Formula Rate: The formula rate for the GI Service has three 
components:
    Component 1: GI Service is applied to deviations as follows, unless 
otherwise dictated by contract or policy: (1) Deviations within the 
bandwidth will be tracked and settled financially at the greater of the 
California Independent System Operator (CAISO) market price or WAPA-
SN's actual cost; (2) negative

[[Page 11523]]

deviations (under-delivery), outside the deviation bandwidth, will be 
charged the greater of 150-percent of the CAISO market price or 150-
percent of WAPA-SN's actual cost; and (3) positive deviations (over-
delivery), outside the deviation bandwidth, will be lost to the system, 
except for any hour when WAPA-SN incurs a cost to dispose of the 
energy, in which event the responsible party will bear that cost.
    Deviations that occur as a result of actions taken to support 
reliability will be resolved in accordance with existing contractual 
requirements. Such actions include reserve activations or uncontrolled 
event responses as directed by the responsible reliability authority 
such as SBA, Host Balancing Authority (HBA), Reliability Coordinator, 
or Transmission Operator.
    To the extent that an entity incorporates intermittent resources, 
deviations will be charged as follows, unless otherwise dictated by 
contract or policy: (1) Deviations within the bandwidth will be tracked 
and settled financially at the greater of the CAISO market price or 
WAPA-SN's actual cost; (2) negative deviations (under-delivery), 
outside the deviation bandwidth, will be charged the greater of market 
price or actual cost (no penalty); and (3) positive deviations (over-
delivery), outside the deviation bandwidth, will be lost to the system, 
except for any hour where WAPA-SN incurs a cost, then that cost will be 
borne by the responsible party.
    Intermittent generators serving load outside of WAPA-SN's SBA will 
be required to dynamically schedule or dynamically meter their 
generation to another Balancing Authority. An intermittent resource, 
for the limited purpose of these rate schedules, is an electric 
generator that is not dispatchable and cannot store its output, and 
therefore cannot respond to changes in demand or respond to 
transmission security constraints.
    Component 2: Any charges or credits associated with the creation, 
termination, or modification to any tariff, contract, or rate schedule 
accepted or approved by the Federal Energy Regulatory Commission (FERC) 
or other regulatory bodies will be passed on to each relevant customer. 
FERC's or other regulatory bodies' accepted or approved charges or 
credits apply to the service to which this rate methodology applies. 
When possible, WAPA-SN will pass through directly to the relevant 
customer FERC's or other regulatory bodies' accepted or approved 
charges or credits in the same manner WAPA-SN is charged or credited. 
If FERC's or other regulatory bodies' accepted or approved charges or 
credits cannot be passed through directly to the relevant customer in 
the same manner WAPA-SN is charged or credited, the charges or credits 
will be passed through using Component 1 of the formula rate.
    Component 3: Any charges or credits from the HBA applied to WAPA-SN 
for providing this service will be passed through directly to the 
relevant customer in the same manner WAPA-SN is charged or credited to 
the extent possible. If the HBA's charges or credits cannot be passed 
through to the relevant customer in the same manner WAPA-SN is charged 
or credited, the charges or credits will be passed through using 
Component 1 of the formula rate.
    Billing: Billing for negative deviations outside the bandwidth will 
occur monthly.
    Adjustment for Audit Adjustments: Financial audit adjustments that 
apply to the formula rate under this rate schedule will be evaluated on 
a case-by-case basis to determine the appropriate treatment for 
repayment and cash flow management.

[FR Doc. 2021-03853 Filed 2-24-21; 8:45 am]
BILLING CODE 6450-01-P