Olmsted Powerplant Replacement Project-Rate Order No. WAPA-205, 17837-17840 [2023-06142]
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Federal Register / Vol. 88, No. 57 / Friday, March 24, 2023 / Notices
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Dated: March 20, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023–06150 Filed 3–23–23; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. ER23–1415–000]
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Persons unable to file electronically
may mail similar pleadings to the
Federal Energy Regulatory Commission,
888 First Street NE, Washington, DC
20426. Hand delivered submissions in
docketed proceedings should be
delivered to Health and Human
Services, 12225 Wilkins Avenue,
Rockville, Maryland 20852.
In addition to publishing the full text
of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the internet through the
Commission’s Home Page (https://
www.ferc.gov) using the ‘‘eLibrary’’ link.
Enter the docket number excluding the
last three digits in the docket number
field to access the document. At this
time, the Commission has suspended
access to the Commission’s Public
Reference Room, due to the
proclamation declaring a National
Emergency concerning the Novel
Coronavirus Disease (COVID–19), issued
by the President on March 13, 2020. For
assistance, contact the Federal Energy
Regulatory Commission at
FERCOnlineSupport@ferc.gov or call
toll-free, (886) 208–3676 or TYY, (202)
502–8659.
Dated: March 20, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023–06146 Filed 3–23–23; 8:45 am]
BILLING CODE 6717–01–P
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17837
DEPARTMENT OF ENERGY
Western Area Power Administration
Olmsted Powerplant Replacement
Project—Rate Order No. WAPA–205
Western Area Power
Administration, DOE.
ACTION: Notice of rate order concerning
electric power service formula rate.
AGENCY:
The formula rate for the
Colorado River Storage Project (CRSP)
Management Center’s (MC) Olmsted
Powerplant Replacement Project
(Olmsted Project) has been confirmed,
approved, and placed into effect on an
interim basis (Provisional Formula
Rate). The new formula rate, under Rate
Schedule Olmsted F–2, replaces the
existing formula rate for this service,
under Rate Schedule Olmsted F–1,
which expires on May 6, 2023. A change
was made to the definition of Formula
Rate in the Rate Schedule F–2 to reflect
that the Annual Revenue Requirement is
multiplied by the Customer’s allocation
percentage. The new formula rate under
Rate Schedule Olmsted F–2 is effective
May 1, 2023, through April 30, 2028.
DATES: The provisional formula rate
under Rate Schedule Olmsted F–2 is
effective on the first day of the first full
billing period beginning on or after May
1, 2023, and will remain in effect
through April 30, 2028, pending
confirmation and approval by the
Federal Energy Regulatory Commission
(FERC) on a final basis or until
superseded.
FOR FURTHER INFORMATION CONTACT:
Rodney Bailey, CRSP Manager, CRSP
Management Center, Western Area
Power Administration, 1800 South Rio
Grande Avenue, Montrose, CO 81401, or
email: CRSPMC-rate-adj.gov, or Thomas
Hackett, Rates Manager, CRSP
Management Center, Western Area
Power Administration, 801–524–5503,
or email: hackett@wapa.gov.
SUPPLEMENTARY INFORMATION: On August
30, 2018, FERC confirmed and approved
Rate Schedule F–1 under Rate Order No.
WAPA–177 on a final basis through
May 6, 2023.1 This schedule applies to
the Olmsted Project electric power
service. Western Area Power
Administration (WAPA) published a
Federal Register notice (Proposed FRN)
on November 10, 2022 (87 FR 67894),
proposing no changes to the existing
formula rate under Rate Order WAPA–
177, but establishing a new rate period
for the formula Rate Schedule Olmsted
SUMMARY:
1 Order Confirming and Approving Rate Schedule
on a Final Basis, FERC Docket No. EF18–4–000, 164
FERC ¶ 62,116 (2018).
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F–2. The Proposed FRN also initiated a
30-day public consultation and
comment period on the new rate
schedule.
Legal Authority
By Delegation Order No. S1–DEL–
RATES–2016, 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, and place
into effect on a final basis, or to remand
or disapprove such rates, to FERC. By
Delegation Order No. S1–DEL–S3–
2022–2, effective June 13, 2022, 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 for
Infrastructure. By Redelegation Order
No. S3–DEL–WAPA1–2022, effective
June 13, 2022, the Under Secretary for
Infrastructure further redelegated 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. S3–DEL–WAPA1–2022 and
Department of Energy procedures for
public participation in rate adjustments
set forth at 10 CFR part 903.2
Following a review of CRSP MC’s
proposal, Rate Order No. WAPA–205,
which provides the formula rate for the
Olmsted Powerplant Replacement
Project, is hereby confirmed, approved,
and placed into effect on an interim
basis. WAPA will submit Rate Order No.
WAPA–205 to FERC for confirmation
and approval on a final basis.
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Department of Energy Administrator,
Western Area Power Administration
In the Matter of: Western Area Power
Administration, Colorado River
Storage Project Management Center,
Rate Adjustment for the Olmsted
Powerplant Replacement Project,
Electric Power Service Formula Rate
Rate Order No. WAPA–205
Order Confirming, Approving, and
Placing the Formula Rate for the
Olmsted Powerplant Replacement
Project Into Effect on an Interim Basis
The formula rate in Rate Order No.
WAPA–205 is established following
section 302 of the Department of Energy
(DOE) Organization Act (42 U.S.C.
7152).1
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
1 This Act transferred to, and vested in, the
Secretary of Energy the power marketing functions
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By Delegation Order No. S1–DEL–
RATES–2016, effective November 19,
2016, the Secretary of Energy delegated:
(1) the authority to develop power and
transmission rates to the Western Area
Power Administration (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, 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. S1–DEL–S3–
2022–2, effective June 13, 2022, 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 for
Infrastructure. By Redelegation Order
No.S3–DEL–WAPA1–2022, effective
June 13, 2022, the Under Secretary for
Infrastructure further redelegated 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. S3–DEL–WAPA1–2022 and
DOE procedures for public participation
in rate adjustments set forth at 10 CFR
part 903.2
Acronyms, Terms, and Definitions
As used in this Rate Order, the
following acronyms, terms, and
definitions apply:
Allocation: A portion of the Olmsted
Project assigned to a particular
customer.
Capital Repayment: The total amount
of principal and interest applied to
repay capital projects.
Customer: An entity with a contract
receiving an allocation of the Olmsted
Project generation.
Customer Rate Brochure: A document
prepared for public distribution
explaining the rationale and background
for the information contained in this
rate order.
Energy: Measured in terms of the
work it can do over time. Electric energy
is expressed in kilowatt-hours or
megawatt-hours.
FY: WAPA’s fiscal year; October 1 to
September 30.
Installments: Annual Revenue
Requirement billed to customers in 12
equal monthly amounts.
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 project involved.
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
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Marketable Energy: The generation
made available for sale.
NEPA: National Environmental Policy
Act of 1969, as amended.
O&M: Operation and maintenance
expenses.
OM&R: Operation, maintenance, and
replacement expenses.
Order RA 6120.2: DOE Order
outlining the power marketing
administration financial reporting and
rate-making procedures.
Power: Energy (there is no capacity for
Olmsted as it is an Energy only project).
Power Repayment Study (PRS):
Defined in Order RA 6120.2 as a study
portraying the annual repayment of
power production and transmission
costs of a power system through the
application of revenues over the
repayment period of the power system.
The study shows, among other items,
estimated revenues and expenses, year
by year, over the remainder of the power
system’s repayment period (based upon
conditions prevailing over the cost
evaluation period), the estimated
amount of Federal investment amortized
during each year, and the total
estimated amount of Federal investment
remaining to be amortized.
Provisional Formula Rate: A formula
rate confirmed, approved, and placed
into effect on an interim basis by the
Secretary or his/her designee.
Revenue Requirement: The revenue
required by the PRS to recover annual
expenses (such as operation and
maintenance, interest, and deferred
expenses) and repay Federal
investments and other assigned costs.
Effective Date
The Provisional Formula Rate
Schedule Olmsted F–2 will take effect
on the first day of the first full billing
period beginning on or after May 1,
2023, and will remain in effect through
April 30, 2028, pending approval by
FERC on a final basis or until
superseded.
Public Notice and Comment
CRSP MC followed the Procedures for
Public Participation in Power and
Transmission Rate Adjustments and
Extensions, 10 CFR part 903, in
developing this formula rate. The steps
CRSP MC took to involve interested
parties in the rate process included:
1. On November 10, 2022, a Federal
Register notice (87 FR 67894) (Proposed
FRN) announced the proposed formula
rate and launched a 30-day public
consultation and comment period.
2. On November 10, 2022, CRSP MC
notified Customers and interested
parties of the proposed rate and
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provided a copy of the published
Proposed FRN.
3. CRSP MC provided a website that
contained all dates, letters,
presentations, the FRN, a Customer Rate
Brochure, and other information about
this rate process. The website is located
at www.wapa.gov/regions/CRSP/rates/
Pages/rate-order-205.aspx.
4. The 30-day consultation and
comment period ended on December 12,
2022. CRSP MC received no oral or
written comments.
Power Repayment Study—Electric
Power Service Formula Rate
CRSP MC prepares a PRS each FY to
determine if revenues will be sufficient
to repay, within the required time, all
costs assigned to the Olmsted Project.
Repayment criteria are based on
applicable laws, legislation, and
policies, including Order RA 6120.2. To
meet the Cost Recovery Criteria outlined
in Order RA 6120.2, CRSP MC
developed a formula rate to demonstrate
that sufficient revenues will be collected
under the Provisional Formula Rate to
meet future obligations.
A change was made to the definition
of Formula Rate in the Rate Schedule F–
2 to reflect that the Annual Revenue
Requirement is multiplied by the
Customer’s allocation percentage. Each
customer will continue to be billed for
its proportional share of the Olmsted
Project Revenue Requirement. The
Revenue Requirement is calculated
every FY and is payable in 12 monthly
Installments. CRSP MC will forecast
Olmsted Project FY expenses by
preparing a PRS, which will include
estimates of future OM&R, associated
interest expenses, and other assigned
costs. This repayment schedule does not
depend on the energy made available for
sale or the year’s generation amount.
The amount of each monthly
installment is established in advance
and submitted to the Customers on or
before August 31 of the year preceding
the appropriate FY. Customers are to
pay reimbursable investment and the
OM&R of the Olmsted Project and, in
return, will receive all marketable
Energy produced.
CRSP MC will calculate the revenue
requirement based on two years of data.
The calculation also includes an
adjustment. The adjustment is the
surplus or deficit in the last historic
year when actual costs and repayment
obligations are subtracted from
revenues. This surplus or deficit is
combined with the projected revenue
requirement year costs to arrive at the
annual revenue requirement. Each
customer’s annual installment pays the
annual amortized portion of the United
States’ investment in the Olmsted
Project with interest and the associated
OM&R.
To date, all investments not currently
in progress (or in progress and not yet
complete), are accounted for as
Construction in Progress costs and have
not been transferred to plant accounts
for capitalization. Once transferred, an
amortization schedule will be calculated
for repayment. Historical financial data
is available through FY 2021. Current
projections are based on the FY 2024
Reclamation and WAPA work plans
received in February 2022, as indicated
in Table 1. WAPA will update these
projections on the website as data
becomes available.
TABLE 1—ACTUAL & PROJECTED INVESTMENT AND O&M, AND CAPITAL REPAYMENT
FY
2022
2024
2025
2026
2027
Capital Repayment ..................................
CUWCD Olmsted O&M ...........................
USBR O&M ..............................................
WAPA O&M .............................................
Provo Facility Use ....................................
$385,144
709,657
27,500
17,357
118,841
$408,263
1,029,299
10,000
19,177
118,841
$408,973
1,017,876
27,500
19,560
118,841
$408,898
483,559
27,500
19,951
118,841
$408,821
562,421
10,000
20,350
118,841
$408,742
543,187
10,000
20,757
118,841
FY Totals ..........................................
1,258,498
1,585,580
1,575,250
1,058,749
1,120,434
1,101,527
The FY 2023 annual revenue
requirement includes all projected FY
2023 OM&R requiring repayment
through FY 2023. Annual installments
are established in advance by WAPA
and submitted to the Olmsted Project
customers on August 31, before the new
FY. The FY 2024 annual installment
will include all actual OM&R requiring
repayment from the FY 2022 final
financial data, the projected FY 2025
OM&R work plan, and amortized
payments on capital investments plus
interest. Subsequent annual installment
updates will use updated financial data
from appropriate conforming years.
Schedule Olmsted F–2 is the lowest
possible rate, consistent with sound
business principles. The Provisional
Formula Rate was developed following
administrative policies and applicable
laws.
Availability of Information
CRSP MC received no oral or written
comments during the public
consultation and comment period.
Information about this rate
adjustment, including the Customer
Rate Brochure, PRSs, comments, letters,
memorandums, and other supporting
materials used to develop the
Provisional Formula Rate, is available
for inspection and copying at the CRSP
MC Regional Office, 1800 South Rio
Grande Avenue, Montrose, CO. Many of
these documents are also available on
WAPA’s website at www.wapa.gov/
regions/CRSP/rates/Pages/rate-order205.aspx.
Certification of Rates
Ratemaking Procedure Requirements
I have certified that the Provisional
Formula Rate for the Olmsted Project
electric power service under Rate
Environmental Compliance
Comments
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2023
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WAPA has determined that this
action fits within the following
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categorical exclusions listed in
appendix B to subpart D of 10 CFR
1021.410: B4.3 (Electric power
marketing rate changes). Categorically
excluded projects and activities do not
require the preparation of either an
environmental impact statement or an
environmental assessment.3 A copy of
the categorical exclusion determination
is available on WAPA’s website at
www.wapa.gov/regions/CRSP/rates/
Pages/rate-order-205.aspx.
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.
3 The determination was done in compliance with
NEPA (42 U.S.C. 4321–4347); the Council on
Environmental Quality Regulations for
implementing NEPA (40 CFR parts 1500–1508); and
DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021).
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Federal Register / Vol. 88, No. 57 / Friday, March 24, 2023 / Notices
Submission to the Federal Energy
Regulatory Commission
The Provisional Formula Rate is
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–205. The rate will remain in
effect on an interim basis until: (1) FERC
confirms and approves it on a final
basis; (2) a subsequent rate is confirmed
and approved; or (3) such rate is
superseded.
Signing Authority
This document of the Department of
Energy was signed on March 14, 2023,
by Tracey A. LeBeau, 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
Office of the Federal Register
requirements, 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 March 21,
2023.
Treena V. Garrett
Federal Register Liaison Officer, U.S.
Department of Energy.
Colorado River Storage Project
Management Center
Olmsted Powerplant Replacement
Project
Electric Power Service
(Approved Under Rate Order No.
WAPA–205)
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Formula Rate
Annual Revenue Requirement
(Projected Operations, Maintenance,
and Replacement Costs + Projected
Interest + Projected Principal Payments
± True-Up Adjustment) × Customer’s
Allocation Percentage.
Adjustments
True-Up Adjustment: The surplus or
deficit that occurred in the last historic
year when actual costs and repayment
obligations are subtracted from actual
revenues.
Adjustment for Power Factor: The
customer will be required to maintain a
power factor at all points of
measurement between 95 percent
lagging and 95 percent leading.
[FR Doc. 2023–06142 Filed 3–23–23; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–10806–01–OA]
Notification of a Public Meeting of the
Chartered Clean Air Scientific Advisory
Committee (CASAC) and CASAC
Ozone Review Panel
The Environmental Protection
Agency (EPA) Science Advisory Board
(SAB) Staff Office announces a public
meeting of the Chartered Clean Air
Scientific Advisory Committee (CASAC)
and CASAC Ozone Review Panel to
discuss a draft CASAC report on EPA’s
Ozone Policy Assessment (PA).
DATES: The public meeting will be held
on May 23, 2023, from 11:00 a.m. to
3:00 p.m. and May 24, 2023, from 11
a.m. to 3 p.m. All times listed are in
Eastern Time.
ADDRESSES: The meeting will be
conducted virtually. Please refer to the
CASAC website at https://casac.epa.gov
for details on how to access the meeting.
SUMMARY:
Western Area Power Administration
Effective
The first day of the first, full billing
period beginning on or after May 1,
2023, and extending through April 30,
2028, or until superseded by another
rate schedule, whichever occurs earlier.
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Alternating current, 60 hertz, threephase, delivered and metered at the
voltages and points established by
contract.
Environmental Protection
Agency (EPA).
ACTION: Notice.
United States Department of Energy
19:18 Mar 23, 2023
Applicable
To the sale of total plant generation to
all customers with an Olmsted Project
allocation.
AGENCY:
Rate Schedule Olmsted F–2
(Supersedes Rate Schedule F–1)
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Available
Within the marketing area served by
the Colorado River Storage Project; parts
of Northern Utah.
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Any
member of the public wishing further
information regarding this notice may
contact Mr. Aaron Yeow, Designated
Federal Officer (DFO), SAB Staff Office,
by telephone at (202) 564–2050 or via
email at yeow.aaron@epa.gov. General
information concerning the CASAC, as
well as any updates concerning the
meetings announced in this notice can
be found on the CASAC website:
https://casac.epa.gov.
SUPPLEMENTARY INFORMATION:
Background: The CASAC was
established pursuant to the Clean Air
Act (CAA) Amendments of 1977,
codified at 42 U.S.C. 7409(d)(2), to
review air quality criteria and NAAQS
and recommend to the EPA
Administrator any new NAAQS and
revisions of existing criteria and
NAAQS as may be appropriate. The
CASAC shall also: advise the EPA
Administrator of areas in which
additional knowledge is required to
appraise the adequacy and basis of
existing, new, or revised NAAQS;
describe the research efforts necessary
to provide the required information;
advise the EPA Administrator on the
relative contribution to air pollution
concentrations of natural as well as
anthropogenic activity; and advise the
EPA Administrator of any adverse
public health, welfare, social, economic,
or energy effects which may result from
various strategies for attainment and
maintenance of such NAAQS. As
amended, 5 U.S.C., App. Section
109(d)(1) of the Clean Air Act (CAA)
requires that EPA carry out a periodic
review and revision, as appropriate, of
the air quality criteria and the NAAQS
for the six ‘‘criteria’’ air pollutants,
including ozone.
The CASAC is a Federal Advisory
Committee chartered under the Federal
Advisory Committee Act (FACA), 5
U.S.C., App. 2, and conducts business
in accordance with FACA and related
regulations. The CASAC and the
CASAC Ozone Review Panel will
comply with the provisions of FACA
and all appropriate SAB Staff Office
procedural policies. Pursuant to FACA
and EPA policy, notice is hereby given
that the Chartered CASAC and CASAC
Ozone Review Panel will hold a public
meeting to discuss a draft CASAC report
on EPA’s Ozone PA.
Technical Contacts: Any technical
questions concerning EPA’s Ozone PA
should be directed to Ms. Leigh Meyer
(meyer.leigh@epa.gov).
Availability of Meeting Materials:
Prior to the meeting, the review
documents, agenda and other materials
will be accessible on the CASAC
website: https://casac.epa.gov.
FOR FURTHER INFORMATION CONTACT:
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]]>Agencies
[Federal Register Volume 88, Number 57 (Friday, March 24, 2023)]
[Notices]
[Pages 17837-17840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06142]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Olmsted Powerplant Replacement Project--Rate Order No. WAPA-205
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order concerning electric power service formula
rate.
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SUMMARY: The formula rate for the Colorado River Storage Project (CRSP)
Management Center's (MC) Olmsted Powerplant Replacement Project
(Olmsted Project) has been confirmed, approved, and placed into effect
on an interim basis (Provisional Formula Rate). The new formula rate,
under Rate Schedule Olmsted F-2, replaces the existing formula rate for
this service, under Rate Schedule Olmsted F-1, which expires on May 6,
2023. A change was made to the definition of Formula Rate in the Rate
Schedule F-2 to reflect that the Annual Revenue Requirement is
multiplied by the Customer's allocation percentage. The new formula
rate under Rate Schedule Olmsted F-2 is effective May 1, 2023, through
April 30, 2028.
DATES: The provisional formula rate under Rate Schedule Olmsted F-2 is
effective on the first day of the first full billing period beginning
on or after May 1, 2023, and will remain in effect through April 30,
2028, pending confirmation and approval by the Federal Energy
Regulatory Commission (FERC) on a final basis or until superseded.
FOR FURTHER INFORMATION CONTACT: Rodney Bailey, CRSP Manager, CRSP
Management Center, Western Area Power Administration, 1800 South Rio
Grande Avenue, Montrose, CO 81401, or email: CRSPMC-rate-adj.gov, or
Thomas Hackett, Rates Manager, CRSP Management Center, Western Area
Power Administration, 801-524-5503, or email: [email protected].
SUPPLEMENTARY INFORMATION: On August 30, 2018, FERC confirmed and
approved Rate Schedule F-1 under Rate Order No. WAPA-177 on a final
basis through May 6, 2023.\1\ This schedule applies to the Olmsted
Project electric power service. Western Area Power Administration
(WAPA) published a Federal Register notice (Proposed FRN) on November
10, 2022 (87 FR 67894), proposing no changes to the existing formula
rate under Rate Order WAPA-177, but establishing a new rate period for
the formula Rate Schedule Olmsted
[[Page 17838]]
F-2. The Proposed FRN also initiated a 30-day public consultation and
comment period on the new rate schedule.
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\1\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF18-4-000, 164 FERC ] 62,116 (2018).
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Legal Authority
By Delegation Order No. S1-DEL-RATES-2016, 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, and place into effect on a final basis, or to
remand or disapprove such rates, to FERC. By Delegation Order No. S1-
DEL-S3-2022-2, effective June 13, 2022, 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 for Infrastructure.
By Redelegation Order No. S3-DEL-WAPA1-2022, effective June 13, 2022,
the Under Secretary for Infrastructure further redelegated 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. S3-DEL-WAPA1-2022 and Department of Energy
procedures for public participation in rate adjustments set forth at 10
CFR part 903.\2\
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\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Following a review of CRSP MC's proposal, Rate Order No. WAPA-205,
which provides the formula rate for the Olmsted Powerplant Replacement
Project, is hereby confirmed, approved, and placed into effect on an
interim basis. WAPA will submit Rate Order No. WAPA-205 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, Colorado River
Storage Project Management Center, Rate Adjustment for the Olmsted
Powerplant Replacement Project, Electric Power Service Formula Rate
Rate Order No. WAPA-205
Order Confirming, Approving, and Placing the Formula Rate for the
Olmsted Powerplant Replacement Project Into Effect on an Interim Basis
The formula rate in Rate Order No. WAPA-205 is established
following section 302 of the Department of Energy (DOE) Organization
Act (42 U.S.C. 7152).\1\
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\1\ 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 project
involved.
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By Delegation Order No. S1-DEL-RATES-2016, effective November 19,
2016, the Secretary of Energy delegated: (1) the authority to develop
power and transmission rates to the Western Area Power Administration
(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, 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.
S1-DEL-S3-2022-2, effective June 13, 2022, 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 for Infrastructure.
By Redelegation Order No.S3-DEL-WAPA1-2022, effective June 13, 2022,
the Under Secretary for Infrastructure further redelegated 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. S3-DEL-WAPA1-2022 and DOE procedures for public
participation in rate adjustments set forth at 10 CFR part 903.\2\
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\2\ 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:
Allocation: A portion of the Olmsted Project assigned to a
particular customer.
Capital Repayment: The total amount of principal and interest
applied to repay capital projects.
Customer: An entity with a contract receiving an allocation of the
Olmsted Project generation.
Customer Rate Brochure: A document prepared for public distribution
explaining the rationale and background for the information contained
in this rate order.
Energy: Measured in terms of the work it can do over time. Electric
energy is expressed in kilowatt-hours or megawatt-hours.
FY: WAPA's fiscal year; October 1 to September 30.
Installments: Annual Revenue Requirement billed to customers in 12
equal monthly amounts.
Marketable Energy: The generation made available for sale.
NEPA: National Environmental Policy Act of 1969, as amended.
O&M: Operation and maintenance expenses.
OM&R: Operation, maintenance, and replacement expenses.
Order RA 6120.2: DOE Order outlining the power marketing
administration financial reporting and rate-making procedures.
Power: Energy (there is no capacity for Olmsted as it is an Energy
only project).
Power Repayment Study (PRS): Defined in Order RA 6120.2 as a study
portraying the annual repayment of power production and transmission
costs of a power system through the application of revenues over the
repayment period of the power system. The study shows, among other
items, estimated revenues and expenses, year by year, over the
remainder of the power system's repayment period (based upon conditions
prevailing over the cost evaluation period), the estimated amount of
Federal investment amortized during each year, and the total estimated
amount of Federal investment remaining to be amortized.
Provisional Formula Rate: A formula rate confirmed, approved, and
placed into effect on an interim basis by the Secretary or his/her
designee.
Revenue Requirement: The revenue required by the PRS to recover
annual expenses (such as operation and maintenance, interest, and
deferred expenses) and repay Federal investments and other assigned
costs.
Effective Date
The Provisional Formula Rate Schedule Olmsted F-2 will take effect
on the first day of the first full billing period beginning on or after
May 1, 2023, and will remain in effect through April 30, 2028, pending
approval by FERC on a final basis or until superseded.
Public Notice and Comment
CRSP MC followed the Procedures for Public Participation in Power
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in
developing this formula rate. The steps CRSP MC took to involve
interested parties in the rate process included:
1. On November 10, 2022, a Federal Register notice (87 FR 67894)
(Proposed FRN) announced the proposed formula rate and launched a 30-
day public consultation and comment period.
2. On November 10, 2022, CRSP MC notified Customers and interested
parties of the proposed rate and
[[Page 17839]]
provided a copy of the published Proposed FRN.
3. CRSP MC provided a website that contained all dates, letters,
presentations, the FRN, a Customer Rate Brochure, and other information
about this rate process. The website is located at www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx.
4. The 30-day consultation and comment period ended on December 12,
2022. CRSP MC received no oral or written comments.
Power Repayment Study--Electric Power Service Formula Rate
CRSP MC prepares a PRS each FY to determine if revenues will be
sufficient to repay, within the required time, all costs assigned to
the Olmsted Project. Repayment criteria are based on applicable laws,
legislation, and policies, including Order RA 6120.2. To meet the Cost
Recovery Criteria outlined in Order RA 6120.2, CRSP MC developed a
formula rate to demonstrate that sufficient revenues will be collected
under the Provisional Formula Rate to meet future obligations.
A change was made to the definition of Formula Rate in the Rate
Schedule F-2 to reflect that the Annual Revenue Requirement is
multiplied by the Customer's allocation percentage. Each customer will
continue to be billed for its proportional share of the Olmsted Project
Revenue Requirement. The Revenue Requirement is calculated every FY and
is payable in 12 monthly Installments. CRSP MC will forecast Olmsted
Project FY expenses by preparing a PRS, which will include estimates of
future OM&R, associated interest expenses, and other assigned costs.
This repayment schedule does not depend on the energy made available
for sale or the year's generation amount. The amount of each monthly
installment is established in advance and submitted to the Customers on
or before August 31 of the year preceding the appropriate FY. Customers
are to pay reimbursable investment and the OM&R of the Olmsted Project
and, in return, will receive all marketable Energy produced.
CRSP MC will calculate the revenue requirement based on two years
of data. The calculation also includes an adjustment. The adjustment is
the surplus or deficit in the last historic year when actual costs and
repayment obligations are subtracted from revenues. This surplus or
deficit is combined with the projected revenue requirement year costs
to arrive at the annual revenue requirement. Each customer's annual
installment pays the annual amortized portion of the United States'
investment in the Olmsted Project with interest and the associated
OM&R.
To date, all investments not currently in progress (or in progress
and not yet complete), are accounted for as Construction in Progress
costs and have not been transferred to plant accounts for
capitalization. Once transferred, an amortization schedule will be
calculated for repayment. Historical financial data is available
through FY 2021. Current projections are based on the FY 2024
Reclamation and WAPA work plans received in February 2022, as indicated
in Table 1. WAPA will update these projections on the website as data
becomes available.
Table 1--Actual & Projected Investment and O&M, and Capital Repayment
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FY 2022 2023 2024 2025 2026 2027
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Capital Repayment....................................... $385,144 $408,263 $408,973 $408,898 $408,821 $408,742
CUWCD Olmsted O&M....................................... 709,657 1,029,299 1,017,876 483,559 562,421 543,187
USBR O&M................................................ 27,500 10,000 27,500 27,500 10,000 10,000
WAPA O&M................................................ 17,357 19,177 19,560 19,951 20,350 20,757
Provo Facility Use...................................... 118,841 118,841 118,841 118,841 118,841 118,841
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FY Totals........................................... 1,258,498 1,585,580 1,575,250 1,058,749 1,120,434 1,101,527
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The FY 2023 annual revenue requirement includes all projected FY
2023 OM&R requiring repayment through FY 2023. Annual installments are
established in advance by WAPA and submitted to the Olmsted Project
customers on August 31, before the new FY. The FY 2024 annual
installment will include all actual OM&R requiring repayment from the
FY 2022 final financial data, the projected FY 2025 OM&R work plan, and
amortized payments on capital investments plus interest. Subsequent
annual installment updates will use updated financial data from
appropriate conforming years.
Comments
CRSP MC received no oral or written comments during the public
consultation and comment period.
Certification of Rates
I have certified that the Provisional Formula Rate for the Olmsted
Project electric power service under Rate Schedule Olmsted F-2 is the
lowest possible rate, consistent with sound business principles. The
Provisional Formula Rate was 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 used to develop the Provisional Formula Rate, is available
for inspection and copying at the CRSP MC Regional Office, 1800 South
Rio Grande Avenue, Montrose, CO. Many of these documents are also
available on WAPA's website at www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this action fits within the following
categorical exclusions listed in appendix B to subpart D of 10 CFR
1021.410: B4.3 (Electric power marketing rate changes). Categorically
excluded projects and activities do not require the preparation of
either an environmental impact statement or an environmental
assessment.\3\ A copy of the categorical exclusion determination is
available on WAPA's website at www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx.
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\3\ The determination was done in compliance with NEPA (42
U.S.C. 4321-4347); the Council on Environmental Quality Regulations
for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA
Implementing Procedures and Guidelines (10 CFR part 1021).
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Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
[[Page 17840]]
Submission to the Federal Energy Regulatory Commission
The Provisional Formula Rate is 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-205. The rate will remain in effect on an interim
basis until: (1) FERC confirms and approves it on a final basis; (2) a
subsequent rate is confirmed and approved; or (3) such rate is
superseded.
Signing Authority
This document of the Department of Energy was signed on March 14,
2023, by Tracey A. LeBeau, 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 Office of the Federal Register requirements, 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 March 21, 2023.
Treena V. Garrett
Federal Register Liaison Officer, U.S. Department of Energy.
Rate Schedule Olmsted F-2
(Supersedes Rate Schedule F-1)
United States Department of Energy
Western Area Power Administration
Colorado River Storage Project Management Center
Olmsted Powerplant Replacement Project
Electric Power Service
(Approved Under Rate Order No. WAPA-205)
Effective
The first day of the first, full billing period beginning on or
after May 1, 2023, and extending through April 30, 2028, or until
superseded by another rate schedule, whichever occurs earlier.
Available
Within the marketing area served by the Colorado River Storage
Project; parts of Northern Utah.
Applicable
To the sale of total plant generation to all customers with an
Olmsted Project allocation.
Character
Alternating current, 60 hertz, three-phase, delivered and metered
at the voltages and points established by contract.
Formula Rate
Annual Revenue Requirement (Projected Operations, Maintenance, and
Replacement Costs + Projected Interest + Projected Principal Payments
True-Up Adjustment) x Customer's Allocation Percentage.
Adjustments
True-Up Adjustment: The surplus or deficit that occurred in the
last historic year when actual costs and repayment obligations are
subtracted from actual revenues.
Adjustment for Power Factor: The customer will be required to
maintain a power factor at all points of measurement between 95 percent
lagging and 95 percent leading.
[FR Doc. 2023-06142 Filed 3-23-23; 8:45 am]
BILLING CODE 6450-01-P
