Proposed Salt Lake City Area Integrated Projects Firm Power Rate and Colorado River Storage Project Transmission and Ancillary Services Rates-Rate Order No. WAPA-199, 34002-34005 [2021-13645]

Download as PDF 34002 Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Notices operation of Rule 214(c)(1).6 Motions to intervene that are filed after the intervention deadline are untimely, and may be denied. Any late-filed motion to intervene must show good cause for being late and must explain why the time limitation should be waived and provide justification by reference to factors set forth in Rule 214(d) of the Commission’s Rules and Regulations.7 A person obtaining party status will be placed on the service list maintained by the Secretary of the Commission and will receive copies (paper or electronic) of all documents filed by the applicant and by all other parties. Tracking the Proceeding Throughout the proceeding, additional information about the projects will be available from the Commission’s Office of External Affairs, at (866) 208–FERC, or on the FERC website at www.ferc.gov using the ‘‘eLibrary’’ link as described above. The eLibrary link also provides access to the texts of all formal documents issued by the Commission, such as orders, notices, and rulemakings. In addition, the Commission offers a free service called eSubscription which allows you to keep track of all formal issuances and submittals in specific dockets. This can reduce the amount of time you spend researching proceedings by automatically providing you with notification of these filings, document summaries, and direct links to the documents. For more information and to register, go to www.ferc.gov/docs-filing/ esubscription.asp. Intervention Deadline: 5:00 p.m. Eastern Time on July 13, 2021. Dated: June 22, 2021. Debbie-Anne A. Reese, Deputy Secretary. [FR Doc. 2021–13747 Filed 6–25–21; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Western Area Power Administration khammond on DSKJM1Z7X2PROD with NOTICES Proposed Salt Lake City Area Integrated Projects Firm Power Rate and Colorado River Storage Project Transmission and Ancillary Services Rates—Rate Order No. WAPA—199 Western Area Power Administration, DOE. ACTION: Notice of proposed firm power fixed rate and transmission and ancillary services formula rates. AGENCY: 6 18 7 18 CFR 385.214(c)(1). CFR 385.214(b)(3) and (d). VerDate Sep<11>2014 17:39 Jun 25, 2021 Jkt 253001 The Colorado River Storage Project Management Center (CRSP MC) of the Western Area Power Administration (WAPA) proposes a new Salt Lake City Area Integrated Projects (SLCA/IP) fixed firm power rates for use December 1, 2021, through December 31, 2023. The existing rates for these services are not set to expire until September 30, 2025; however, CRSP MC is initiating this rate action in response to a 35-percent projected increase to the firm power composite rate caused by a large increase in purchased power costs due to on-going drought conditions and a small increase to Operation, Maintenance, and Replacement (OM&R) expenses. Based on the FY 2021 toll on the Upper Colorado River Basin Fund (Basin Fund) and the drought-induced purchased power projections from the Reclamation May 24-Month Study, existing rates will not sustain a balance in the Basin Fund capable of supporting operations. CRSP MC proposes modifying how purchased power is calculated, and purchased power costs would be assessed on a pass-throughcost basis charged to each customer. CRSP MC proposes modifying language to implement the Cost Recovery Charge (CRC) throughout the year, if warranted, and would be able to implement a CRC if water levels drop below the intake structures at Glen Canyon Dam. Additionally, updated Colorado River Storage Project (CRSP) transmission and ancillary services rate schedules are proposed for use December 1, 2021, through December 31, 2023, with no material change proposed other than updating effective dates. DATES: A consultation and comment period will begin June 28, 2021 and end August 31, 2021. This provides approximately 65 days for public comment, in accordance with WAPA’s authority under 10 CFR 903.14 to shorten the otherwise 90-day comment period for good cause. Concluding the comment period by August 31, 2021, will enable CRSP MC to implement the rates by the effective date of December 1, 2021. Further delaying implementation to January 1, 2022, given projected costs of purchased power, would reduce the Basin Fund by a further $10 million due to the deficiency of current rates in light of escalating purchased power costs. CRSP MC will present a detailed explanation of the proposed rates and other modifications at a public information forum on July 7, 2021, 12 p.m. to 2 p.m. Mountain Daylight Time (MDT). CRSP MC will present a purchased-powerspecific public information forum on July 28, 2021, 12 p.m. to 2 p.m. MDT. SUMMARY: PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 CRSP MC will present a CRC-specific public information forum on July 29, 2021, 12 p.m. to 2 p.m. MDT. CRSP MC will accept oral and written comments at a public comment forum on August 11, 2021, 12 p.m. to no later than 2 p.m. MDT. CRSP MC will accept written comments any time during the consultation and comment period. CRSP MC will provide a 14-day consultation and comment period specifically for purchased power after the CRSP MC posts the final purchased power amounts to its website at: https:// www.wapa.gov/regions/CRSP/rates/ Pages/rates.aspx. ADDRESSES: Written comments and requests for information about Federal Energy Regulatory Commission (FERC) actions concerning the proposed rates submitted by WAPA to FERC for approval should be sent to: Mr. Rodney Bailey, Acting CRSP Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 1800 South Rio Grande Avenue, Montrose, CO 81401, or email: CRSPMC-rate-adj-@wapa.gov. CRSP MC 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 forums will be conducted online. CRSP MC will post webinar and call-in information a week before each respective forum to its website at: https://www.wapa.gov/regions/CRSP/ rates/Pages/rates.aspx. 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 August 17, 2020, under Rate Order No. WAPA– 190, WAPA’s Administrator placed the following rate schedules into effect on an interim basis, effective October 1, 2020, and through September 30, 2025, pending confirmation and final approval by FERC:1 SLIP–F11 for SLCA/ IP Firm Power, SP–NW5 for Network Integration Transmission Service, SP– PTP9 for Firm Point-to-Point Transmission Service, SP–NFT8 for Non-Firm Point-to-Point Transmission Service, SP–UU2 for Unreserved Use Penalties, SP–EI5 for Energy and Generator Imbalance Service, SP–SSR5 for Operating Reserves—Spinning and Supplemental Reserve Services, and SP–SS1 for Sale of Surplus Products. On December 17, 2020, FERC approved and 1 85 E:\FR\FM\28JNN1.SGM FR 52115 (Aug. 24, 2020). 28JNN1 Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Notices confirmed the rate schedules on a final basis through September 30, 2025.2 WAPA is proposing a 2-year rate to address worsening drought conditions in the southwestern United States and volatile purchased power costs. The proposed firm power rate is a fixed rate; the proposed transmission and ancillary services rates continue to use the formula-based methodology that includes an annual update to the financial and load data in the rate formulas. The proposed rates would go into effect December 1, 2021, and remain in effect until December 31, 2023, or until WAPA supersedes or changes the rates through another public rate process pursuant to 10 CFR part 903, whichever occurs first. The proposed base rates would provide sufficient revenue to recover annual OM&R expenses, interest expense, irrigation assistance, and capital repayment requirements within the cost recovery criteria set forth in Department of Energy (DOE) Order No. RA 6120.2. WAPA proposes that purchased power required to supplement hydropower deliveries up to contractual levels would be passed through to firm power customers under a separate charge, which would be in addition to the base rate for hydropower deliveries. Any customer not wanting to receive its share of the purchased power costs would not be charged the purchased power charge and would receive a proportionate amount of capacity and energy from WAPA each month, charged at the base rate, reflecting actual hydropower generation levels. If WAPA identifies a viable proposal to reduce the total purchased power expenses in the power rate and provide additional flexibility to the customers, it will be set forth during a public information forum. WAPA will develop a rate schedule to 34003 pass through the purchased power costs. A draft of the new rate schedule will be included in the brochure. SLCA/IP Firm Power Rate Under the current Rate Schedule SLIP–11, the energy rate is 11.43 mills per kilowatthour (mills/kWh), and the capacity rate is $4.85 per kilowattmonth ($/kWmonth). The composite rate of all charges, used for reference only as a comparison against other wholesale power rates, is 27.45 mills/kWh. The revenue requirement for the proposed rate is based upon the most current data available, specifically the fiscal year (FY) 2020 historical financial data and the FY 2023 work plans for WAPA and the Bureau of Reclamation (Reclamation), and the May 24-Month Study. Table 1 shows a comparison of costs of the existing rate structures, without the additional purchased power expenses. TABLE 1—COMPARISON OF EXISTING AND PROPOSED FIRM POWER RATES Rate schedule Existing rate under rate schedule SLIP–F11 effective October 1, 2020 Proposed rate under rate schedule SLIP–F12 effective December 1, 2021 11.43 4.85 27.45 N/A 12.70 5.40 30.44 Market Price khammond on DSKJM1Z7X2PROD with NOTICES Base Rate: Firm Energy: (mills/kWh) ............................................................................................. Firm Capacity: ($kW/month) ........................................................................................ Composite Rate: (mills/kWh) ....................................................................................... Purchased Power Rate: Average Monthly Purchase Energy (mills/kWh) .................. Currently, WAPA uses Reclamation’s most-probable monthly water releases and end-of-month elevations as reported in Reclamation’s August 24-Month Study (24-month Study), provided by Reclamation—Upper Colorado Basin, to determine the first year of firmingenergy-purchase projections. For energy-purchase projections in subsequent years, WAPA uses a subset of Reclamation’s annual August Colorado River Simulation System (CRSS) model traces to estimate energy purchase projections, using a rolling average value to minimize fluctuations. WAPA continues to evaluate methodologies used to forecast purchased power. Under rate schedule SLIP–F12, WAPA will use the August 24-Month Study to determine generation and projected sales for the two rate years. WAPA will propose actions to be implemented when Lake Powell’s water level drops below the level at which its turbines cannot generate power. These actions will be included in the new rate schedule. Any additional changes to methodologies will be posted in the rate brochure and presented at the public information forum for purchased power. WAPA will update the rate brochure throughout the rate process as data and processes are updated or added. Cost Recovery Charge WAPA will continue to use a Cost Recovery Charge (CRC), if necessary, as a mechanism to adequately recover and maintain a sufficient balance in the Basin Fund in the event projected expenses significantly exceed projected revenue estimates. The Basin Fund is a revolving fund and operates without annual appropriations. The CRC is an additional surcharge on all Sustainable Hydro Power (SHP) energy deliveries, which are long-term energy sales provided under WAPA’s SLCA/IP firm electric service contracts. The CRC may be implemented when, among other things, the Basin Fund’s cash balance is at risk due to low hydropower 17:39 Jun 25, 2021 Jkt 253001 PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 +11.11 +11.25 +10.89 generation, high prices for firming power, or emergency capitalized investment funding. The CRC is based only on Basin Fund cash analysis and is independent of the SLCA/IP Power Repayment Study calculations. WAPA proposes to reserve the right to implement a CRC throughout the year using guidance from the existing implementation tiers and the latest 24month Study from Reclamation. An established CRC would be in effect for 12 months from the date implemented. If circumstances dictate the need to reassess an established 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. The minimum Basin Fund carryover balance is $40 million. 2 Order Confirming and Approving Rate Schedules on a Final Basis, FERC Docket No. EF20– 7–000, 173 FERC ¶ 61,230 (2020). VerDate Sep<11>2014 Change (%) E:\FR\FM\28JNN1.SGM 28JNN1 34004 Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Notices TABLE 3—CRC IMPLEMENTATION TIERS Tier Criteria, if the Basin Fund beginning balance is: i ......................... ii ......................... 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. iii ........................ iv ........................ v ........................ Under this proposal, WAPA reserves the right to implement a CRC throughout the year using the criteria in Table 3 if annual water releases from Glen Canyon Dam fall below 8.23 million acre-feet regardless of the Basin Fund balance. WAPA would establish an energy waiver level (WL) using the CRC formula. Customers could accept either the CRC or WL. The WL provides WAPA the ability to reduce purchase power expenses by delivering less energy than its contractual obligations. For those customers who agree to schedule no more energy than their proportionate share of the WL, WAPA would waive the CRC for that year. WAPA continues to refine the CRC process and the details of the CRC calculations. Any recommended changes will be provided in the customer rate brochure and set forth at the public information forum for the CRC. Transmission Services Annual Transmission Revenue Requirement (ATRR) Unreserved Use Penalties WAPA proposes no changes to the Unreserved Use penalty rate. khammond on DSKJM1Z7X2PROD with NOTICES Ancillary Services Energy Imbalance and Generator Imbalance Services WAPA proposes no changes to the Energy Imbalance and Generator Imbalance Rate Schedule. These services are provided to CRSP, as a Transmission Service Provider, by the Western Area Colorado Missouri 17:39 Jun 25, 2021 Jkt 253001 Spinning and Supplemental Reserves WAPA proposes no changes to the Operating Reserves—Spinning and Supplemental Reserves Services formula rate. Sale of Surplus Products WAPA proposes no changes to the rate schedule for the sale of the following surplus energy and capacity products: Energy, regulation, reserves, and frequency response. Joint Dispatch Transmission Service Joint Dispatch Transmission Service is currently being added, in a separate parallel process, to WAPA’s rates under Rate Order No. WAPA–195 3 and is proposed to be effective October 1, 2021. This Rate Order would supersede WAPA–195 for the purpose of aligning expiration dates. No other changes are proposed. Legal Authority WAPA does not propose any changes to the existing formula rate for calculating ATRR, applicable to both Network Integration and Point-to-Point transmission service rates. The ATRR is the annual cost of the CRSP Transmission System adjusted for NonFirm Point-to-Point revenue credits, other miscellaneous charges or credits, and the prior year true-up. VerDate Sep<11>2014 Balancing Authority under Rate Schedule L–AS9. 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, 2019.4 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), CRSP MC will hold public information and public comment forums for this rate adjustment. CRSP MC will review and consider all timely public comments at the conclusion of the consultation and comment period and adjust the proposal, as appropriate. The rates will then be approved on an interim basis. CRSP MC is proposing the SLCA/IP firm power rate and revised CRSP transmission and ancillary services formula rates in accordance with section 3 86 FR 21726 (Apr 23, 2021). FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019). 4 50 PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 Notification Annually. Semi-Annual (May/November). Monthly. 302 of the DOE Organization Act (42 U.S.C. 7152).5 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. S1–DEL–S4–2021, effective February 25, 2021, the Acting Secretary of Energy also delegated the authority to confirm, approve, and place such rates into effect on an interim basis to the Under Secretary for Science (and Energy). By Redelegation Order No. S4– DEL–OE1–2021, effective March 25, 2021, the Acting Under Secretary for Science (and Energy) redelegated 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 redelegated the authority to confirm, approve, and place such rates into effect on an interim basis to WAPA’s Administrator. This redelegation order, despite predating the February 2021 and March 2021 delegations, remains valid. Availability of Information All brochures, studies, comments, letters, memoranda, or other documents that the CRSP MC initiates or uses to develop the proposed rates are available for inspection and copying at the Colorado River Storage Project Management Center, 1800 South Rio Grande Avenue, Montrose, Colorado. 5 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. E:\FR\FM\28JNN1.SGM 28JNN1 Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Notices 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. Environmental Compliance 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. Signing Authority This document of the Department of Energy was signed on June 21, 2021, by Tracey A. LeBeau, Interim Administrator, Western Area Power Administration, pursuant to delegated authority from the Secretary of Energy. That document, with the original signature and date, is 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 June 22, 2021. Treena V. Garrett, Federal Register Liaison Officer, U.S. Department of Energy. [FR Doc. 2021–13645 Filed 6–25–21; 8:45 am] BILLING CODE 6450–01–P khammond on DSKJM1Z7X2PROD with NOTICES Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: 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.6 6 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). 17:39 Jun 25, 2021 [EPA–HQ–OPPT–2003–0004; FRL–10024– 39] Access to Confidential Business Information by Avanti Corporation Ratemaking Procedure Requirements VerDate Sep<11>2014 ENVIRONMENTAL PROTECTION AGENCY Jkt 253001 EPA has authorized its contractor Avanti Corporation of Alexandria, VA, to access information which has been submitted to EPA under all Sections of the Toxic Substances Control Act (TSCA). Some of the information may be claimed or determined to be Confidential Business Information (CBI). DATES: Access to the confidential data will occur no sooner than July 6, 2021. FOR FURTHER INFORMATION CONTACT: For technical information contact: Colby Lintner, Program Management and Operations Division (7407M), Office of Pollution Prevention and Toxics, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460–0001; telephone number: (202) 564–8182; email address: lintner.colby@ epa.gov. For general information contact: The TSCA-Hotline, ABVI-Goodwill, 422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 554– 1404; email address: TSCA-Hotline@ epa.gov. SUPPLEMENTARY INFORMATION: SUMMARY: 34005 telephone number for the Public Reading Room is (202) 566–1744, and the telephone number for the OPPT Docket is (202) 566–0280. Due to the public health concerns related to COVID–19, the EPA Docket Center (EPA/DC) and Reading Room is closed to visitors with limited exceptions. The staff continues to provide remote customer service via email, phone, and webform. For the latest status information on EPA/DC services and docket access, visit https:// www.epa.gov/dockets. II. What action is the Agency taking? Under contract number 47QRAA20D002D, task order number 68HERC21F0043, contractor Avanti, Corporation of 6621 Richmond Hwy. #200, Alexandria, VA will assist the Office of Pollution Prevention and Toxics (OPPT) by providing administrative and technical support to the TSCA New Chemicals Program utilizing EPA CBI databases and software to create documents, databases, attend meetings, previewing CBI claims, transferring sanitized documents from the CBI LAN to ADMIN and transfer non-CBI files to the CBI LAN for special projects. In accordance with 40 CFR 2.306(j), EPA has determined that under EPA contract number 47QRAA20D002D, task order number 68HERC21F0043, Avanti will require access to CBI submitted under all Sections of TSCA to perform successfully the duties specified under I. General Information the contract. Avanti’s personnel will be A. Does this action apply to me? given access to information claimed or determined to be CBI information This action is directed to the public in general. This action may, however, be submitted to EPA under all sections of TSCA. of interest to all who manufacture, process, or distribute industrial EPA is issuing this notice to inform chemicals. Since other entities may also all submitters of information under all be interested, the Agency has not sections of TSCA that EPA will provide attempted to describe all the specific Avanti access to these CBI materials on entities that may be affected by this a need-to-know basis only. All access to action. TSCA CBI under this contract will take B. How can I get copies of this document place at EPA Headquarters, in accordance with EPA’s TSCA CBI and other related information? Protection Manual. The docket for this action, identified Access to TSCA data, including CBI, by docket identification (ID) number EPA–HQ–OPPT–2003–0004, is available will continue until October 31, 2023. If at http://www.regulations.gov or at the the contract is extended, this access will Office of Pollution Prevention and also continue for the duration of the Toxics Docket (OPPT Docket), extended contract without further Environmental Protection Agency notice. Docket Center (EPA/DC), West William Avanti’s personnel will be required to Jefferson Clinton Bldg., Rm. 3334, 1301 sign nondisclosure agreements and will Constitution Ave. NW, Washington, DC. be briefed on specific security The Public Reading Room is open from procedures for TSCA CBI. 8:30 a.m. to 4:30 p.m., Monday through Authority: 15 U.S.C. 2601 et seq. Friday, excluding legal holidays. The PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 E:\FR\FM\28JNN1.SGM 28JNN1

Agencies

[Federal Register Volume 86, Number 121 (Monday, June 28, 2021)]
[Notices]
[Pages 34002-34005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13645]


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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--199

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed firm power fixed rate and transmission and 
ancillary services formula rates.

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SUMMARY: The Colorado River Storage Project Management Center (CRSP MC) 
of the Western Area Power Administration (WAPA) proposes a new Salt 
Lake City Area Integrated Projects (SLCA/IP) fixed firm power rates for 
use December 1, 2021, through December 31, 2023. The existing rates for 
these services are not set to expire until September 30, 2025; however, 
CRSP MC is initiating this rate action in response to a 35-percent 
projected increase to the firm power composite rate caused by a large 
increase in purchased power costs due to on-going drought conditions 
and a small increase to Operation, Maintenance, and Replacement (OM&R) 
expenses. Based on the FY 2021 toll on the Upper Colorado River Basin 
Fund (Basin Fund) and the drought-induced purchased power projections 
from the Reclamation May 24-Month Study, existing rates will not 
sustain a balance in the Basin Fund capable of supporting operations. 
CRSP MC proposes modifying how purchased power is calculated, and 
purchased power costs would be assessed on a pass-through-cost basis 
charged to each customer. CRSP MC proposes modifying language to 
implement the Cost Recovery Charge (CRC) throughout the year, if 
warranted, and would be able to implement a CRC if water levels drop 
below the intake structures at Glen Canyon Dam. Additionally, updated 
Colorado River Storage Project (CRSP) transmission and ancillary 
services rate schedules are proposed for use December 1, 2021, through 
December 31, 2023, with no material change proposed other than updating 
effective dates.

DATES: A consultation and comment period will begin June 28, 2021 and 
end August 31, 2021. This provides approximately 65 days for public 
comment, in accordance with WAPA's authority under 10 CFR 903.14 to 
shorten the otherwise 90-day comment period for good cause. Concluding 
the comment period by August 31, 2021, will enable CRSP MC to implement 
the rates by the effective date of December 1, 2021. Further delaying 
implementation to January 1, 2022, given projected costs of purchased 
power, would reduce the Basin Fund by a further $10 million due to the 
deficiency of current rates in light of escalating purchased power 
costs. CRSP MC will present a detailed explanation of the proposed 
rates and other modifications at a public information forum on July 7, 
2021, 12 p.m. to 2 p.m. Mountain Daylight Time (MDT). CRSP MC will 
present a purchased-power-specific public information forum on July 28, 
2021, 12 p.m. to 2 p.m. MDT. CRSP MC will present a CRC-specific public 
information forum on July 29, 2021, 12 p.m. to 2 p.m. MDT. CRSP MC will 
accept oral and written comments at a public comment forum on August 
11, 2021, 12 p.m. to no later than 2 p.m. MDT. CRSP MC will accept 
written comments any time during the consultation and comment period. 
CRSP MC will provide a 14-day consultation and comment period 
specifically for purchased power after the CRSP MC posts the final 
purchased power amounts to its website at: https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.

ADDRESSES: Written comments and requests for information about Federal 
Energy Regulatory Commission (FERC) actions concerning the proposed 
rates submitted by WAPA to FERC for approval should be sent to: Mr. 
Rodney Bailey, Acting CRSP Manager, Colorado River Storage Project 
Management Center, Western Area Power Administration, 1800 South Rio 
Grande Avenue, Montrose, CO 81401, or email: [email protected]. 
CRSP MC 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 forums will be conducted online. 
CRSP MC will post webinar and call-in information a week before each 
respective forum to its website at: https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.

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 August 17, 2020, under Rate Order No. 
WAPA-190, WAPA's Administrator placed the following rate schedules into 
effect on an interim basis, effective October 1, 2020, and through 
September 30, 2025, pending confirmation and final approval by FERC:\1\ 
SLIP-F11 for SLCA/IP Firm Power, SP-NW5 for Network Integration 
Transmission Service, SP-PTP9 for Firm Point-to-Point Transmission 
Service, SP-NFT8 for Non-Firm Point-to-Point Transmission Service, SP-
UU2 for Unreserved Use Penalties, SP-EI5 for Energy and Generator 
Imbalance Service, SP-SSR5 for Operating Reserves--Spinning and 
Supplemental Reserve Services, and SP-SS1 for Sale of Surplus Products. 
On December 17, 2020, FERC approved and

[[Page 34003]]

confirmed the rate schedules on a final basis through September 30, 
2025.\2\
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    \1\ 85 FR 52115 (Aug. 24, 2020).
    \2\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF20-7-000, 173 FERC ] 61,230 (2020).
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    WAPA is proposing a 2-year rate to address worsening drought 
conditions in the southwestern United States and volatile purchased 
power costs. The proposed firm power rate is a fixed rate; the proposed 
transmission and ancillary services rates continue to use the formula-
based methodology that includes an annual update to the financial and 
load data in the rate formulas. The proposed rates would go into effect 
December 1, 2021, and remain in effect until December 31, 2023, or 
until WAPA supersedes or changes the rates through another public rate 
process pursuant to 10 CFR part 903, whichever occurs first.
    The proposed base rates would provide sufficient revenue to recover 
annual OM&R expenses, interest expense, irrigation assistance, and 
capital repayment requirements within the cost recovery criteria set 
forth in Department of Energy (DOE) Order No. RA 6120.2.
    WAPA proposes that purchased power required to supplement 
hydropower deliveries up to contractual levels would be passed through 
to firm power customers under a separate charge, which would be in 
addition to the base rate for hydropower deliveries. Any customer not 
wanting to receive its share of the purchased power costs would not be 
charged the purchased power charge and would receive a proportionate 
amount of capacity and energy from WAPA each month, charged at the base 
rate, reflecting actual hydropower generation levels. If WAPA 
identifies a viable proposal to reduce the total purchased power 
expenses in the power rate and provide additional flexibility to the 
customers, it will be set forth during a public information forum. WAPA 
will develop a rate schedule to pass through the purchased power costs. 
A draft of the new rate schedule will be included in the brochure.

SLCA/IP Firm Power Rate

    Under the current Rate Schedule SLIP-11, the energy rate is 11.43 
mills per kilowatthour (mills/kWh), and the capacity rate is $4.85 per 
kilowattmonth ($/kWmonth). The composite rate of all charges, used for 
reference only as a comparison against other wholesale power rates, is 
27.45 mills/kWh.
    The revenue requirement for the proposed rate is based upon the 
most current data available, specifically the fiscal year (FY) 2020 
historical financial data and the FY 2023 work plans for WAPA and the 
Bureau of Reclamation (Reclamation), and the May 24-Month Study. Table 
1 shows a comparison of costs of the existing rate structures, without 
the additional purchased power expenses.

                          Table 1--Comparison Of Existing And Proposed Firm Power Rates
----------------------------------------------------------------------------------------------------------------
                                                             Existing rate       Proposed rate
                                                              under rate          under rate
                      Rate schedule                        schedule SLIP-F11   schedule SLIP-F12    Change (%)
                                                           effective October  effective December
                                                                1, 2020             1, 2021
----------------------------------------------------------------------------------------------------------------
Base Rate:
Firm Energy: (mills/kWh)................................               11.43               12.70          +11.11
Firm Capacity: ($kW/month)..............................                4.85                5.40          +11.25
Composite Rate: (mills/kWh).............................               27.45               30.44          +10.89
Purchased Power Rate: Average Monthly Purchase Energy                    N/A        Market Price
 (mills/kWh)............................................
----------------------------------------------------------------------------------------------------------------

    Currently, WAPA uses Reclamation's most-probable monthly water 
releases and end-of-month elevations as reported in Reclamation's 
August 24-Month Study (24-month Study), provided by Reclamation--Upper 
Colorado Basin, to determine the first year of firming-energy-purchase 
projections. For energy-purchase projections in subsequent years, WAPA 
uses a subset of Reclamation's annual August Colorado River Simulation 
System (CRSS) model traces to estimate energy purchase projections, 
using a rolling average value to minimize fluctuations. WAPA continues 
to evaluate methodologies used to forecast purchased power. Under rate 
schedule SLIP-F12, WAPA will use the August 24-Month Study to determine 
generation and projected sales for the two rate years. WAPA will 
propose actions to be implemented when Lake Powell's water level drops 
below the level at which its turbines cannot generate power. These 
actions will be included in the new rate schedule. Any additional 
changes to methodologies will be posted in the rate brochure and 
presented at the public information forum for purchased power. WAPA 
will update the rate brochure throughout the rate process as data and 
processes are updated or added.

Cost Recovery Charge

    WAPA will continue to use a Cost Recovery Charge (CRC), if 
necessary, as a mechanism to adequately recover and maintain a 
sufficient balance in the Basin Fund in the event projected expenses 
significantly exceed projected revenue estimates. The Basin Fund is a 
revolving fund and operates without annual appropriations. The CRC is 
an additional surcharge on all Sustainable Hydro Power (SHP) energy 
deliveries, which are long-term energy sales provided under WAPA's 
SLCA/IP firm electric service contracts. 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, or 
emergency capitalized investment funding. The CRC is based only on 
Basin Fund cash analysis and is independent of the SLCA/IP Power 
Repayment Study calculations.
    WAPA proposes to reserve the right to implement a CRC throughout 
the year using guidance from the existing implementation tiers and the 
latest 24-month Study from Reclamation. An established CRC would be in 
effect for 12 months from the date implemented. If circumstances 
dictate the need to reassess an established 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.
    The minimum Basin Fund carryover balance is $40 million.

[[Page 34004]]



                                        Table 3--CRC Implementation Tiers
----------------------------------------------------------------------------------------------------------------
                                 Criteria, if the Basin Fund
             Tier                   beginning balance is:                         Notification
----------------------------------------------------------------------------------------------------------------
i.............................  Greater than $150 million      Annually.
                                 with an 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      Semi-Annual (May/November).
                                 greater than $60 million
                                 with an expected 25-percent
                                 decrease in the next CY.
v.............................  Less than $60 million but      Monthly.
                                 greater than $40 million
                                 with an expected decrease to
                                 below $40 million in the
                                 next CY.
----------------------------------------------------------------------------------------------------------------

    Under this proposal, WAPA reserves the right to implement a CRC 
throughout the year using the criteria in Table 3 if annual water 
releases from Glen Canyon Dam fall below 8.23 million acre-feet 
regardless of the Basin Fund balance.
    WAPA would establish an energy waiver level (WL) using the CRC 
formula. Customers could accept either the CRC or WL. The WL provides 
WAPA the ability to reduce purchase power expenses by delivering less 
energy than its contractual obligations. For those customers who agree 
to schedule no more energy than their proportionate share of the WL, 
WAPA would waive the CRC for that year.
    WAPA continues to refine the CRC process and the details of the CRC 
calculations. Any recommended changes will be provided in the customer 
rate brochure and set forth at the public information forum for the 
CRC.

Transmission Services

Annual Transmission Revenue Requirement (ATRR)

    WAPA does not propose any changes to the existing formula rate for 
calculating ATRR, applicable to both Network Integration and Point-to-
Point transmission service rates. 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.

Unreserved Use Penalties

    WAPA proposes no changes to the Unreserved Use penalty rate.

Ancillary Services

Energy Imbalance and Generator Imbalance Services

    WAPA proposes no changes to the Energy Imbalance and Generator 
Imbalance Rate Schedule. These services are 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

    WAPA proposes no changes to the rate schedule for the sale of the 
following surplus energy and capacity products: Energy, regulation, 
reserves, and frequency response.

Joint Dispatch Transmission Service

    Joint Dispatch Transmission Service is currently being added, in a 
separate parallel process, to WAPA's rates under Rate Order No. WAPA-
195 \3\ and is proposed to be effective October 1, 2021. This Rate 
Order would supersede WAPA-195 for the purpose of aligning expiration 
dates. No other changes are proposed.
---------------------------------------------------------------------------

    \3\ 86 FR 21726 (Apr 23, 2021).
---------------------------------------------------------------------------

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.\4\ 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), CRSP MC will hold public 
information and public comment forums for this rate adjustment. CRSP MC 
will review and consider all timely public comments at the conclusion 
of the consultation and comment period and adjust the proposal, as 
appropriate. The rates will then be approved on an interim basis.
---------------------------------------------------------------------------

    \4\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------

    CRSP MC 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).\5\
---------------------------------------------------------------------------

    \5\ 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. S1-DEL-S4-2021, 
effective February 25, 2021, the Acting Secretary of Energy also 
delegated the authority to confirm, approve, and place such rates into 
effect on an interim basis to the Under Secretary for Science (and 
Energy). By Redelegation Order No. S4-DEL-OE1-2021, effective March 25, 
2021, the Acting Under Secretary for Science (and Energy) redelegated 
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 redelegated the authority 
to confirm, approve, and place such rates into effect on an interim 
basis to WAPA's Administrator. This redelegation order, despite 
predating the February 2021 and March 2021 delegations, remains valid.

Availability of Information

    All brochures, studies, comments, letters, memoranda, or other 
documents that the CRSP MC initiates or uses to develop the proposed 
rates are available for inspection and copying at the Colorado River 
Storage Project Management Center, 1800 South Rio Grande Avenue, 
Montrose, Colorado.

[[Page 34005]]

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.\6\
---------------------------------------------------------------------------

    \6\ 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).
---------------------------------------------------------------------------

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.

Signing Authority

    This document of the Department of Energy was signed on June 21, 
2021, by Tracey A. LeBeau, Interim Administrator, Western Area Power 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document, with the original signature and date, is 
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 June 22, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-13645 Filed 6-25-21; 8:45 am]
BILLING CODE 6450-01-P