Salt Lake City Area Integrated Projects and Colorado River Storage Project-Rate Order No. WAPA-206, 40813-40816 [2023-13282]
Download as PDF
Federal Register / Vol. 88, No. 119 / Thursday, June 22, 2023 / Notices
and interventions in lieu of paper using
the ‘‘eFile’’ link at https://www.ferc.gov.
In lieu of electronic filing, you may
submit a paper copy. Submissions sent
via the U.S. Postal Service must be
addressed to: Kimberly D. Bose,
Secretary, Federal Energy Regulatory
Commission, 888 First Street NE, Room
1A, Washington, DC 20426.
Submissions sent via any other carrier
must be addressed to: Kimberly D. Bose,
Secretary, Federal Energy Regulatory
Commission, 12225 Wilkins Avenue,
Rockville, Maryland 20852.
The Commission’s Office of Public
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public engagement and participation in
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ferc.gov.
Dated: June 15, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023–13284 Filed 6–21–23; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Salt Lake City Area Integrated Projects
and Colorado River Storage Project—
Rate Order No. WAPA–206
Western Area Power
Administration, DOE.
ACTION: Notice of proposed firm power
fixed rate and transmission services,
ancillary services, and sale of surplus
products formula rates.
AGENCY:
The Colorado River Storage
Project (CRSP) Management Center (MC)
of the Western Area Power
Administration (WAPA) proposes a new
Salt Lake City Area Integrated Projects
(SLCA/IP) firm power rate and updated
effective dates for existing CRSP
transmission, joint dispatch
transmission, ancillary services, and
sale of surplus products formula rates.
The current firm power rate expires
December 31, 2023. The CRSP
transmission services, ancillary services,
and surplus products rates that expire
September 30, 2025, and the CRSP joint
dispatch transmission service rate that
expires September 30, 2024, are
included in Rate Order No. WAPA–206
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SUMMARY:
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to make all the rate schedules effective
for the same timeframe. The firm power
service rate is proposed to remain the
same. No material changes are proposed
to the other rate schedules aside from
updating the effective dates.
DATES: A consultation and comment
period will begin June 22, 2023 and
ends September 1, 2023. CRSP MC will
present a detailed explanation of the
proposed rates and other modifications
at public information forums on the
following dates and times:
1. Public information forum July 19,
2023, 12:00 p.m. to 2:00 p.m. Mountain
Daylight Time (MDT). This meeting will
be conducted in Salt Lake City, UT,
along with a WebEx option.
2. CRSP MC will accept oral and
written comments at a public comment
forum on the following date and time:
August 15, 2023, 12:00 p.m. to no later
than 2:00 p.m. MDT. This meeting will
be conducted via WebEx.
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: Rodney
Bailey, 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:
www.wapa.gov/regions/CRSP/rates/
Pages/rate-order-206.aspx.
FOR FURTHER INFORMATION CONTACT:
Tony Henriquez, Rates Specialist,
Colorado River Storage Project
Management Center, Western Area
Power Administration, 970–240–6546,
or email: CRSPMC-rate-adj@wapa.gov.
SUPPLEMENTARY INFORMATION: On May
12, 2022, FERC approved and confirmed
Rate Schedule SLIP–F12 for Firm Power
Service under Rate Order No. WAPA–
199 on a final basis through December
31, 2023.1 On March 18, 2022, FERC
approved and confirmed Rate Schedule
SP–NFJDT for Joint Dispatch
Transmission Service under Rate Order
No. WAPA–195 on a final basis through
September 30, 2024.2 On December 17,
2020, FERC approved and confirmed the
following rate schedules under Rate
Order No. WAPA–190 on a final basis
1 Order Confirming and Approving Rate Schedule
on a Final Basis, FERC Docket No. EF 22–1–000
(179 FERC ¶ 62,085 (2022)).
2 Order Confirming and Approving Rate Schedule
on a Final Basis, FERC Docket No. EF 21–7–000
(178 FERC ¶ 62,154 (2022)).
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40813
through September 30, 2025.3 These rate
schedules are: SLIP–F11 for Firm Power
Service (later superseded by SLIP–F12),
SP–NW5 for Network Integration
Transmission Service, SP–PTP9 for
Firm Point-to-Point Transmission
Service, SP–NFT8 for Non-Firm Pointto-Point Transmission Service, SP–UU2
for Unreserved Use Penalties, SP–E15
for Energy and Generation Imbalance,
SP–SSR5 for Operating Reserves—
Spinning and Supplemental Reserve
Services, and SP–SS1 for Sale of
Surplus Products. The proposed firm
power rate is a fixed rate. The proposed
transmission, ancillary services, and
surplus products rates continue the
formula-based methodology that
includes an annual update to the
financial and load data in the applicable
rate formulas. The inputs into the
formulas and resulting charges under
the rates will be annually updated on
October 1 thereafter. CRSP MC intends
the proposed rates to go into effect
January 1, 2024, and remain in effect
until December 31, 2028, or until WAPA
supersedes or changes the rates through
another public rate process pursuant to
10 CFR part 903, whichever occurs first.
The proposed rates will provide
sufficient revenue to recover annual
operation, maintenance, and
replacement expenses, interest expense,
irrigation assistance, and capital
repayment requirements while ensuring
repayment of the project within the cost
recovery criteria set forth in Department
of Energy (DOE) Order RA 6120.2. For
more information on the proposed rates,
including the Cost Recovery Charge
component, please see the customer rate
brochure (brochure) located on CRSP
MC’s website at: www.wapa.gov/
regions/CRSP/rates/Pages/rate-order206.aspx.
The Comment and Consultation
period is shorter than 90 days and will
end on September 1, 2023. In
accordance with 10 CFR 903.14(a),
WAPA has shortened the comment
period to less than 90 days for good
cause. This timeframe is necessary to
implement a new rate effective January
1, 2024. There also was a delay in
processing this Federal Register Notice
resulting from the unexpected loss of
key rates personnel.
SLCA/IP Firm Power Rate
Under the current Rate Schedule
SLIP–12, the energy rate is 12.36 mills
per kilowatt hour (mills/kWh) and the
capacity rate is $5.25 per kilowatt
month ($/kWmonth). The composite
3 Order Confirming and Approving Rate
Schedules on a Final Basis, FERC Docket No. EF
20–7–000 (173 FERC ¶ 61,230 (2020)).
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Federal Register / Vol. 88, No. 119 / Thursday, June 22, 2023 / Notices
rate of all charges, used for reference
only as a comparison against other
wholesale power rates, is 30.51 mills/
kWh.
Currently, CRSP MC uses the Bureau
of Reclamation’s (Reclamation) most
probable monthly water releases and
end-of-month elevations as reported in
Reclamation’s August 24-Month Study,
provided by Reclamation—Upper
Colorado Basin, to determine the first
year of firming-energy-sales/generation
projections. For energy-sales/generation
projections in subsequent years, CRSP
MC will use data provided by
Reclamation’s Colorado River Mid-term
Modeling System (CRMMS). Under Rate
Schedule SLIP–F13, CRSP MC proposes
no changes to the customers 30 days’
notice before reducing the Deliverable
Sales Amount (DSA) if Lake Powell’s
water level drops below the level at
which its turbines can no longer
generate power, as established in Rate
Schedule SLIP–F12. CRSP MC will
update the customer rate brochure
throughout the rate process as data and
processes are updated or added.
The revenue requirement for the
proposed firm power rate is based on
fiscal year (FY) 2022 historical financial
data and estimated FY 2025 work plans
for WAPA and Reclamation. The
Reclamation FY 2023 April 24-Month
Study is the source for the generation
data for this proposal FRN. 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 under rate
schedule SLIP–F12
effective
December 1, 2021
Rate schedule
Base Rate:
Firm Energy: (mills/kWh) ......................................................................
Firm Capacity: ($kW/month) .................................................................
Composite Rate/ 1 (mills/kWh) ..............................................................
1 The
12.36
5.25
30.51
Change
12.36
5.25
31.14
0.0%
0.0%
+2.0%
composite rate is used for reference only as a comparison against other wholesale power rates.
Deliverable Sales Amount
CRSP MC will continue to use the
DSA methodology established in Rate
Order No. WAPA–199 to address
drought conditions in the southwestern
United States and volatile purchased
power costs. Under DSA, sales are
limited to projected generation, and
CRSP MC will make firming purchases
up to the forecasted DSA level. WAPA
will include projected costs for
operational expenses necessary to meet
DSA, and these costs will be included
in the rate based on expenses incurred
in FY2022 and FY2023. CRSP MC will
continue to offer the Western
Replacement Firming (WRF) product.
WRF is optional purchased power to
firm to customers’ Sustainable
Hydropower (SHP) allocation levels, the
cost of which is passed through to firm
power customers under a separate
charge for those customers electing
WRF. Both DSA and WRF will continue
to be updated quarterly using the
applicable 24-month study from
Reclamation. WRF will continue to be
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Proposed rate under
rate achedule
SLIP–F13
effective
January 1, 2024
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18:01 Jun 21, 2023
Jkt 259001
billed as it is requested to match cost
collection with cost occurrence.
Any customer electing not to receive
its share of the purchased power costs
through WRF will not be charged for
WRF. These customers will receive a
proportionate amount of capacity and
energy from CRSP MC each month
under the DSA, charged at the proposed
firm power rate, reflecting projected
hydropower generation levels.
Cost Recovery Charge
CRSP MC will continue to use a Cost
Recovery Charge (CRC), if necessary.
The CRC is a mechanism to adequately
recover and maintain a sufficient
balance in the Upper Colorado River
Basin Fund (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
SHP energy deliveries, which are longterm energy sales provided under
WAPA’s SLCA/IP firm electric service
contracts. The CRC may be
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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.
Transmission Services
Annual Transmission Revenue
Requirement (ATRR)
CRSP MC does not propose any
material changes to the existing formula
rate for calculating the ATRR,
applicable to the rates for Network
Integration Transmission Service and
other transmission services. 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.
Network Integration Transmission
Service
Formula Rate (SP–NW5)
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Federal Register / Vol. 88, No. 119 / Thursday, June 22, 2023 / Notices
CRSP MC proposes no material
changes to the rate schedules for
network integration transmission
service under proposed Rate Schedule
SP–NW6.
Formula Rate (SP–NFT8)
Sale of Surplus Products
Maximum Non-Firm Point-To-Point
Transmission Rate = Firm Point-ToPoint Transmission Rate
CRSP MC proposes no material
changes to the rate schedule for the sale
of surplus products under proposed
Rate Schedule SP–SS2.
Hourly Delivery:
On-Peak Hours: $0.00/MWh
Off Peak Hours: $0.00/MWh
CRSP MC proposes no material
changes to the rate schedule for joint
dispatch transmission service under
Rate Schedule SP–NFJDT.
Unreserved Use Penalties
CRSP MC proposes no material
changes to the rate schedule for
unreserved use penalties under
proposed Rate Schedule SP–UU3.
Ancillary Services
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Energy Imbalance and Generator
Imbalance Services
CRSP MC proposes no material
changes to the rate schedule for energy
imbalance and generator imbalance
under proposed Rate Schedule SP–EI6.
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18:01 Jun 21, 2023
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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(d). 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.
WAPA is establishing the SLCA/IP
firm power rate, CRSP transmission and
ancillary services formula rates, and sale
of surplus products formula rate in
accordance with section 302 of the DOE
Organization Act (42 U.S.C. 7152).5
By Delegation Order No. S1–DEL–
RATES–2016, effective November 19,
2016, the Secretary of Energy delegated:
4 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
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 (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.
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Availability of Information
All brochures, studies, comments,
letters, memoranda, or other documents
that CRSP MC initiates or uses to
develop the proposed rates are available
for inspection and copying at the
Colorado River Storage Project
Management Center, located at 1800
South Rio Grande Avenue, Montrose,
Colorado. Many of these documents and
supporting information are also
available on WAPA’s website at:
www.wapa.gov/regions/CRSP/rates/
Pages/rate-order-206.aspx.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is determining whether an
environmental assessment or an
environmental impact statement should
E:\FR\FM\22JNN1.SGM
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EN22JN23.004
Formula Rate (SP–NFJDT)
Legal Authority
(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–S3–2023,
effective April 10, 2023, 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–
WAPA1–2023, effective April 10, 2023,
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.
EN22JN23.003
Joint Dispatch Transmission Service
CRSP MC proposes no material
changes to the rate schedule for
operating reserves—spinning and
supplemental reserves services under
proposed Rate Schedule SP–SSR6.
Firm and Non-Firm Point-to-Point
Transmission Services
Formula Rate (SP–PTP9)
CRSP MC proposes no material
changes to the rate schedules for pointto-point service under proposed Rate
Schedules SP–PTP10 and SP–NFT9.
Spinning and Supplemental Reserves
Services
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Federal Register / Vol. 88, No. 119 / Thursday, June 22, 2023 / Notices
be prepared or if this action can be
categorically excluded from those
requirements.6
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 2, 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
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 16,
2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2023–13282 Filed 6–21–23; 8:45 am]
threshold to report to EPA, every four
years, information concerning the
manufacturing, processing, and use of
such chemical substances, unless
exempt from this requirement under the
CDR rule. For the 2024 submission
period, manufacturers (including
importers) are subject to the reporting
requirements based on manufacturing
(including importing) activities
conducted during the calendar years
2020 through 2023.
DATES: The 2024 submission period is
from June 1, 2024, to September 30,
2024.
The docket for this action,
identified by docket identification (ID)
number EPA–HQ–OPPT–2023–0316, is
available at https://
www.regulations.gov. Additional
instructions on visiting the docket,
along with more information about
dockets generally, is available at https://
www.epa.gov/dockets. For the latest
status information on EPA/DC services
and docket access, visit https://
www.epa.gov/dockets.
FOR FURTHER INFORMATION CONTACT:
Susan Sharkey, Data Gathering and
Analysis Division (7406M), Office of
Pollution Prevention and Toxics,
Environmental Protection Agency, 1200
Pennsylvania Ave. NW, Washington, DC
20460–0001; telephone number: 202–
564–8789; email address:
sharkey.susan@epa.gov.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
I. Executive Summary
BILLING CODE 6450–01–P
A. Does this action apply to me?
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OPPT–2023–0316; FRL–10264–
01–OCSPP]
Announcing the 2024 Chemical Data
Reporting Submission Period
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
The Environmental Protection
Agency (EPA) is announcing the start of
the 2024 submission period for the
Toxic Substances Control Act (TSCA)
Chemical Data Reporting (CDR) rule.
The CDR rule requires manufacturers
(including importers) of chemical
substances on the TSCA Inventory
above an applicable regulatory
ddrumheller on DSK120RN23PROD with NOTICES1
SUMMARY:
6 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).
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18:01 Jun 21, 2023
Jkt 259001
You may be potentially affected by
this action if you manufacture
(including import) chemical substances
listed on the TSCA Chemical Substance
Inventory. The following list of North
American Industrial Classification
System (NAICS) codes is not intended
to be exhaustive, but rather provides a
guide for readers to determine whether
this document applies to them.
Potentially affected entities include but
are not limited to:
• Chemical manufacturers (including
importers) (NAICS codes 325 and
324110, e.g., chemical manufacturing
and processing and petroleum
refineries).
• Chemical users and processors who
may manufacture a byproduct chemical
substance (NAICS codes 22, 322, 331,
and 3344, e.g., utilities, paper
manufacturing, primary metal
manufacturing, and semiconductor and
other electronic component
manufacturing).
Other types of entities not included
could also be affected. To determine
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Fmt 4703
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whether your entity is affected by this
action, you should carefully examine
the applicability criteria found in 40
CFR 711. If you have questions
regarding the applicability of this action
to a particular entity, consult the person
listed in the FOR FURTHER INFORMATION
CONTACT section.
B. What is the Agency’s authority for
taking this action?
The CDR rule is required by section
8(a) of the Toxic Substances Control Act
(TSCA), 15 U.S.C. 2607(a).
C. What action is the Agency taking?
EPA is reminding the public of the
upcoming 2024 CDR submission period,
for which reporting is due between June
1, 2024, and September 30, 2024. The
CDR rule requires manufacturers
(including importers) of chemical
substances on the TSCA Inventory
above an applicable regulatory
threshold to report to EPA, every four
years, information concerning the
manufacturing, processing, and use of
such chemical substances, unless
exempt from this requirement under the
CDR rule.
For the 2024 submission period,
manufacturers (including importers) are
subject to the reporting requirements
based on manufacturing (including
importing) activities conducted during
the calendar years 2020 through 2023.
The determination of the need to report
is based on production volume during
any calendar year since the last
principal reporting year. As an example,
for the 2024 CDR, the last principal
reporting year would be 2019.
II. Background
A. What is CDR?
Under the CDR rule (40 CFR part 711),
EPA collects basic exposure-related
information including information on
the types, quantities and uses of
chemical substances produced
domestically and imported into the
United States. The CDR database
constitutes the most comprehensive
source of basic screening-level,
exposure-related information on
chemicals available to EPA, and is used
by the Agency to protect the public from
potential chemical risks.
The information is collected every
four years from manufacturers
(including importers) of certain
chemicals in commerce generally when
production volumes for the chemical are
25,000 lbs or greater for a specific
reporting year. Collecting the
information every four years assures
that EPA and (for non-confidential data)
the public have access to up-to-date
information on chemicals.
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Agencies
[Federal Register Volume 88, Number 119 (Thursday, June 22, 2023)]
[Notices]
[Pages 40813-40816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13282]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Salt Lake City Area Integrated Projects and Colorado River
Storage Project--Rate Order No. WAPA-206
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed firm power fixed rate and transmission
services, ancillary services, and sale of surplus products formula
rates.
-----------------------------------------------------------------------
SUMMARY: The Colorado River Storage Project (CRSP) Management Center
(MC) of the Western Area Power Administration (WAPA) proposes a new
Salt Lake City Area Integrated Projects (SLCA/IP) firm power rate and
updated effective dates for existing CRSP transmission, joint dispatch
transmission, ancillary services, and sale of surplus products formula
rates. The current firm power rate expires December 31, 2023. The CRSP
transmission services, ancillary services, and surplus products rates
that expire September 30, 2025, and the CRSP joint dispatch
transmission service rate that expires September 30, 2024, are included
in Rate Order No. WAPA-206 to make all the rate schedules effective for
the same timeframe. The firm power service rate is proposed to remain
the same. No material changes are proposed to the other rate schedules
aside from updating the effective dates.
DATES: A consultation and comment period will begin June 22, 2023 and
ends September 1, 2023. CRSP MC will present a detailed explanation of
the proposed rates and other modifications at public information forums
on the following dates and times:
1. Public information forum July 19, 2023, 12:00 p.m. to 2:00 p.m.
Mountain Daylight Time (MDT). This meeting will be conducted in Salt
Lake City, UT, along with a WebEx option.
2. CRSP MC will accept oral and written comments at a public
comment forum on the following date and time: August 15, 2023, 12:00
p.m. to no later than 2:00 p.m. MDT. This meeting will be conducted via
WebEx.
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: Rodney
Bailey, 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: www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx.
FOR FURTHER INFORMATION CONTACT: Tony Henriquez, Rates Specialist,
Colorado River Storage Project Management Center, Western Area Power
Administration, 970-240-6546, or email: [email protected].
SUPPLEMENTARY INFORMATION: On May 12, 2022, FERC approved and confirmed
Rate Schedule SLIP-F12 for Firm Power Service under Rate Order No.
WAPA-199 on a final basis through December 31, 2023.\1\ On March 18,
2022, FERC approved and confirmed Rate Schedule SP-NFJDT for Joint
Dispatch Transmission Service under Rate Order No. WAPA-195 on a final
basis through September 30, 2024.\2\ On December 17, 2020, FERC
approved and confirmed the following rate schedules under Rate Order
No. WAPA-190 on a final basis through September 30, 2025.\3\ These rate
schedules are: SLIP-F11 for Firm Power Service (later superseded by
SLIP-F12), 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-E15 for Energy and Generation Imbalance, SP-SSR5 for
Operating Reserves--Spinning and Supplemental Reserve Services, and SP-
SS1 for Sale of Surplus Products. The proposed firm power rate is a
fixed rate. The proposed transmission, ancillary services, and surplus
products rates continue the formula-based methodology that includes an
annual update to the financial and load data in the applicable rate
formulas. The inputs into the formulas and resulting charges under the
rates will be annually updated on October 1 thereafter. CRSP MC intends
the proposed rates to go into effect January 1, 2024, and remain in
effect until December 31, 2028, or until WAPA supersedes or changes the
rates through another public rate process pursuant to 10 CFR part 903,
whichever occurs first.
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\1\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF 22-1-000 (179 FERC ] 62,085 (2022)).
\2\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF 21-7-000 (178 FERC ] 62,154 (2022)).
\3\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF 20-7-000 (173 FERC ] 61,230 (2020)).
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The proposed rates will provide sufficient revenue to recover
annual operation, maintenance, and replacement expenses, interest
expense, irrigation assistance, and capital repayment requirements
while ensuring repayment of the project within the cost recovery
criteria set forth in Department of Energy (DOE) Order RA 6120.2. For
more information on the proposed rates, including the Cost Recovery
Charge component, please see the customer rate brochure (brochure)
located on CRSP MC's website at: www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx.
The Comment and Consultation period is shorter than 90 days and
will end on September 1, 2023. In accordance with 10 CFR 903.14(a),
WAPA has shortened the comment period to less than 90 days for good
cause. This timeframe is necessary to implement a new rate effective
January 1, 2024. There also was a delay in processing this Federal
Register Notice resulting from the unexpected loss of key rates
personnel.
SLCA/IP Firm Power Rate
Under the current Rate Schedule SLIP-12, the energy rate is 12.36
mills per kilowatt hour (mills/kWh) and the capacity rate is $5.25 per
kilowatt month ($/kWmonth). The composite
[[Page 40814]]
rate of all charges, used for reference only as a comparison against
other wholesale power rates, is 30.51 mills/kWh.
Currently, CRSP MC uses the Bureau of Reclamation's (Reclamation)
most probable monthly water releases and end-of-month elevations as
reported in Reclamation's August 24-Month Study, provided by
Reclamation--Upper Colorado Basin, to determine the first year of
firming-energy-sales/generation projections. For energy-sales/
generation projections in subsequent years, CRSP MC will use data
provided by Reclamation's Colorado River Mid-term Modeling System
(CRMMS). Under Rate Schedule SLIP-F13, CRSP MC proposes no changes to
the customers 30 days' notice before reducing the Deliverable Sales
Amount (DSA) if Lake Powell's water level drops below the level at
which its turbines can no longer generate power, as established in Rate
Schedule SLIP-F12. CRSP MC will update the customer rate brochure
throughout the rate process as data and processes are updated or added.
The revenue requirement for the proposed firm power rate is based
on fiscal year (FY) 2022 historical financial data and estimated FY
2025 work plans for WAPA and Reclamation. The Reclamation FY 2023 April
24-Month Study is the source for the generation data for this proposal
FRN. 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
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Existing rate under Proposed rate under
rate schedule SLIP-F12 rate achedule SLIP-F13
Rate schedule effective December 1, effective January 1, Change
2021 2024
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Base Rate:
Firm Energy: (mills/kWh).................. 12.36 12.36 0.0%
Firm Capacity: ($kW/month)................ 5.25 5.25 0.0%
Composite Rate/ \1\ (mills/kWh)........... 30.51 31.14 +2.0%
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\1\ The composite rate is used for reference only as a comparison against other wholesale power rates.
Deliverable Sales Amount
CRSP MC will continue to use the DSA methodology established in
Rate Order No. WAPA-199 to address drought conditions in the
southwestern United States and volatile purchased power costs. Under
DSA, sales are limited to projected generation, and CRSP MC will make
firming purchases up to the forecasted DSA level. WAPA will include
projected costs for operational expenses necessary to meet DSA, and
these costs will be included in the rate based on expenses incurred in
FY2022 and FY2023. CRSP MC will continue to offer the Western
Replacement Firming (WRF) product. WRF is optional purchased power to
firm to customers' Sustainable Hydropower (SHP) allocation levels, the
cost of which is passed through to firm power customers under a
separate charge for those customers electing WRF. Both DSA and WRF will
continue to be updated quarterly using the applicable 24-month study
from Reclamation. WRF will continue to be billed as it is requested to
match cost collection with cost occurrence.
Any customer electing not to receive its share of the purchased
power costs through WRF will not be charged for WRF. These customers
will receive a proportionate amount of capacity and energy from CRSP MC
each month under the DSA, charged at the proposed firm power rate,
reflecting projected hydropower generation levels.
Cost Recovery Charge
CRSP MC will continue to use a Cost Recovery Charge (CRC), if
necessary. The CRC is a mechanism to adequately recover and maintain a
sufficient balance in the Upper Colorado River Basin Fund (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 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.
Transmission Services
Annual Transmission Revenue Requirement (ATRR)
CRSP MC does not propose any material changes to the existing
formula rate for calculating the ATRR, applicable to the rates for
Network Integration Transmission Service and other transmission
services. The ATRR is the annual cost of the CRSP Transmission System
adjusted for Non-Firm Point-to-Point revenue credits, other
miscellaneous charges or credits, and the prior year true-up.
Network Integration Transmission Service
Formula Rate (SP-NW5)
[[Page 40815]]
[GRAPHIC] [TIFF OMITTED] TN22JN23.003
CRSP MC proposes no material changes to the rate schedules for
network integration transmission service under proposed Rate Schedule
SP-NW6.
Firm and Non-Firm Point-to-Point Transmission Services
Formula Rate (SP-PTP9)
[GRAPHIC] [TIFF OMITTED] TN22JN23.004
Formula Rate (SP-NFT8)
Maximum Non-Firm Point-To-Point Transmission Rate = Firm Point-To-Point
Transmission Rate
CRSP MC proposes no material changes to the rate schedules for
point-to-point service under proposed Rate Schedules SP-PTP10 and SP-
NFT9.
Joint Dispatch Transmission Service
Formula Rate (SP-NFJDT)
Hourly Delivery:
On-Peak Hours: $0.00/MWh
Off Peak Hours: $0.00/MWh
CRSP MC proposes no material changes to the rate schedule for joint
dispatch transmission service under Rate Schedule SP-NFJDT.
Unreserved Use Penalties
CRSP MC proposes no material changes to the rate schedule for
unreserved use penalties under proposed Rate Schedule SP-UU3.
Ancillary Services
Energy Imbalance and Generator Imbalance Services
CRSP MC proposes no material changes to the rate schedule for
energy imbalance and generator imbalance under proposed Rate Schedule
SP-EI6.
Spinning and Supplemental Reserves Services
CRSP MC proposes no material changes to the rate schedule for
operating reserves--spinning and supplemental reserves services under
proposed Rate Schedule SP-SSR6.
Sale of Surplus Products
CRSP MC proposes no material changes to the rate schedule for the
sale of surplus products under proposed Rate Schedule SP-SS2.
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(d). 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.
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\4\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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WAPA is establishing the SLCA/IP firm power rate, CRSP transmission
and ancillary services formula rates, and sale of surplus products
formula rate in accordance with section 302 of the DOE Organization Act
(42 U.S.C. 7152).\5\
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\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
(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.
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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 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-S3-2023, effective April 10, 2023, 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-WAPA1-2023, effective April 10, 2023,
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.
Availability of Information
All brochures, studies, comments, letters, memoranda, or other
documents that CRSP MC initiates or uses to develop the proposed rates
are available for inspection and copying at the Colorado River Storage
Project Management Center, located at 1800 South Rio Grande Avenue,
Montrose, Colorado. Many of these documents and supporting information
are also available on WAPA's website at: www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is determining whether an environmental assessment or an
environmental impact statement should
[[Page 40816]]
be prepared or if this action can be categorically excluded from those
requirements.\6\
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\6\ 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).
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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.
Signing Authority
This document of the Department of Energy was signed on June 2,
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 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 16, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-13282 Filed 6-21-23; 8:45 am]
BILLING CODE 6450-01-P