Integrated System Power Rates-Rate Order No. SWPA-80, 43337-43347 [2023-14401]
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Federal Register / Vol. 88, No. 129 / Friday, July 7, 2023 / Notices
interventions, comments, or requests for
rehearing, the public is encouraged to
contact OPP at (202) 502–6595 or OPP@
ferc.gov.
For more information about this
Notice, please contact:
Katherine Scott (Technical Information),
Office of Energy Market Regulation,
(202) 502–6495, katherine.scott@
ferc.gov
Ryan Bruno (Legal Information), Office
of the General Counsel, (202) 502–
8533, ryan.bruno@ferc.gov
Dated: June 30, 2023.
Kimberly D. Bose,
Secretary.
[FR Doc. 2023–14421 Filed 7–6–23; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. AD21–15–000]
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Joint Federal-State Task Force on
Electric Transmission; Notice of
Meeting and Agenda
As first announced in the
Commission’s April 19, 2023 Notice in
the above-captioned docket,1 the next
public meeting of the Joint Federal-State
Task Force on Electric Transmission
(Task Force) will be held on July 16,
2023, at the JW Marriott in Austin,
Texas, from approximately 2:30 p.m. to
5:00 p.m. Central time. Commissioners
may attend and participate in this
meeting. Attached to this Notice is an
agenda for the meeting.
While this Task Force meeting is not
for the purpose of discussing any
specific matters before the Commission,
some discussions at the meeting may
involve issues raised in proceedings that
are currently pending before the
Commission. These proceedings
include, but are not limited to:
Interregional HVDC Merchant
Transmission—Docket No. AD22–13–
000
Invenergy Transmission LLC v.
Midcontinent Independent System
Operator, Inc.—Docket No. EL22–83–
000
The meeting will be open to the
public for listening and observing and
on the record. There is no fee for
attendance and registration is not
required. This conference will be
transcribed. Transcripts will be
available for a fee from Ace Reporting,
202–347–3700.
1 Joint Fed.-State Task Force on Elec.
Transmission, Notice, Docket No. AD21–15–000
(issued Apr. 19, 2023).
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Commission conferences are
accessible under section 508 of the
Rehabilitation Act of 1973. For
accessibility accommodations, please
send an email to accessibility@ferc.gov
or call toll free 1–866–208–3372 (voice)
or 202–208–8659 (TTY), or send a fax to
202–208–2106 with the required
accommodations.
More information about the Task
Force, including frequently asked
questions, is available here: https://
www.ferc.gov/TFSOET. For more
information about this meeting, please
contact: Anne Marie Hirschberger, 202–
502–8387, annemarie.hirschberger@
ferc.gov; or Jennifer Murphy, 202–898–
1350, jmurphy@naruc.org. For
information related to logistics, please
contact Benjamin Williams, 202–502–
8506, benjamin.williams@ferc.gov; or
Rob Thormeyer, 202–502–8694,
robert.thormeyer@ferc.gov.
For more information about this
Notice, please contact: Anne Marie
Hirschberger, Office of the General
Counsel, (202) 502–8387,
annemarie.hirschberger@ferc.gov.
Dated: June 30, 2023.
Kimberly D. Bose,
Secretary.
[FR Doc. 2023–14347 Filed 7–6–23; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates—Rate
Order No. SWPA–80
Southwestern Power
Administration, DOE.
ACTION: Notice of rate order.
AGENCY:
The Administrator,
Southwestern Power Administration
(Southwestern), has approved and
placed into effect on an interim basis
Rate Order No. SWPA–80 (Rate Order),
which provides the following Integrated
System Wholesale Rates for Hydro
Peaking Power (P–13B) Rate Schedule:
Rate Schedule P–13B, Wholesale Rates
for Hydro Peaking Power (Rate Schedule
P–13B).
DATES: Approval of Rate Schedule P–
13B on an interim basis is effective July
15, 2023.
FOR FURTHER INFORMATION CONTACT: Ms.
Fritha Ohlson, Senior Vice President,
Chief Operating Officer, Office of
Corporate Operations, (918) 595–6684 or
fritha.ohlson@swpa.gov.
SUPPLEMENTARY INFORMATION: Rate Order
No. SWPA–80 is approved and placed
into effect on an interim basis for the
SUMMARY:
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period July 15, 2023, through September
30, 2023, for the following rate
schedule:
Rate Schedule P–13B, Wholesale
Rates for Hydro Peaking Power, which
supersedes the existing Rate Schedule
P–13A, Wholesale Rates for Hydro
Peaking Power.
Southwestern’s Administrator
determined that a change to the Peaking
Energy Schedule Submission Time was
needed to provide Southwestern with
more flexibility and greater certainty
when making replacement power
purchases, and better align
Southwestern with regional organized
energy market considerations. Rate
Schedule P–13B replaces the existing
Rate Schedule P–13A and will expire on
September 30, 2023. Rate Schedule P–
13B updates the Peaking Energy
Schedule Submission time from 2:30
p.m. Central Prevailing Time (CPT) to
8:30 a.m. CPT and allows the
Southwestern’s Administrator to change
the Peaking Energy Schedule
Submission Time no more than once per
year to a time no earlier than 8:00 a.m.
CPT and no later than 9:00 a.m. CPT.
Additionally, in response to comments
received, Rate Schedule P–13B includes
a new Section 4.2.3 that, for a transition
period of approximately two months,
provides for customers to reduce their
Peaking Energy schedules submitted for
the next day after the 8:30 a.m. Peaking
Energy Schedule Submission Time,
provided that such adjustments: (1) do
not increase the amount of Peaking
Energy scheduled for any one hour; (2)
are limited to a 25 percent reduction in
Peaking Energy scheduled for any one
hour; and (3) are coordinated with
Southwestern’s Scheduling and
Operations staff no later than 2:00 p.m.
on the day prior to schedule
implementation. Additional responses
to comments received on the proposed
Rate Schedule P–13B published in the
Federal Register on April 5, 2023
(Proposed Rate Schedule P–13B), are
contained in the Rate Order.
United States of America
Department of Energy
Administrator, Southwestern Power
Administration
In the matter of: Southwestern Power
Administration, Integrated System
Hydro Peaking Power Rate Schedule,
Rate Order No. SWPA–80
Order Confirming, Approving and
Placing Revised Power Rate Schedule
in Effect on an Interim Basis (June 30,
2023)
Pursuant to Sections 301(b) and
302(a) of the Department of Energy
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Organization Act, Public Law 42 U.S.C.
7151(b) and 7152(a), the functions of the
Secretary of the Interior and the Federal
Power Commission under Section 5 of
the Flood Control Act of 1944, 16 U.S.C.
825s, relating to the Southwestern
Power Administration (Southwestern),
were transferred to, and vested in the
Secretary of Energy. 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 Southwestern’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 the Federal
Energy Regulatory Commission (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–SWPA1–2023, effective
April 10, 2023, the Under Secretary for
Infrastructure redelegated the authority
to confirm, approve, and place such
rates into effect on an interim basis to
the Southwestern Administrator.
Pursuant to that delegated authority,
the Southwestern Administrator has
issued this interim rate order.
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Background
Originally established by Order 1865,
Secretary of the Interior, dated August
31, 1943 and effective September 1,
1943 (8 FR 12142 (Sept. 3, 1943)),
Southwestern is authorized by Congress
to market the hydroelectric power and
energy from Federal dams controlled by
the U.S. Army Corps of Engineers
(Corps), pursuant to Section 302(a)(1) of
the Department of Energy Organization
Act (42 U.S.C. 7152(a)(1)), Section 5 of
the Flood Control Act of 1944 (16 U.S.C.
825s), and Public Law 95–456 (16 U.S.C.
825s–3). Guidelines for preparation of
power repayment studies are included
in Department of Energy (DOE) Order
No. RA 6120.2 (Sept. 20, 1979), entitled
Power Marketing Administration
Financial Reporting. Procedures for
public participation in power and
transmission rate adjustments of the
Power Marketing Administrations are
found at title 10, part 903, subpart A of
the Code of Federal Regulations (10 CFR
part 903). Procedures for the
confirmation and approval of rates for
the Federal Power Marketing
Administrations are found at title 18,
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part 300, subpart L of the Code of
Federal Regulations (18 CFR part 300).
Southwestern markets power from 24
multi-purpose reservoir projects with
hydroelectric power facilities
constructed and operated by the Corps.
These projects are located in Arkansas,
Missouri, Oklahoma, and Texas.
Southwestern’s marketing area includes
these states plus Kansas and Louisiana.
The costs associated with 22 of these 24
hydropower projects are repaid with
revenues received under the Integrated
System rates. These rates also cover the
costs of Southwestern’s transmission
facilities that consist of 1,381 miles of
high-voltage transmission lines, 27
substations, and 46 microwave and VHF
radio sites. Additionally, Southwestern
markets power from two hydropower
projects in southeastern Texas, Sam
Rayburn Dam and Robert D. Willis.
These projects are isolated
hydraulically, electrically, and
financially from the Integrated System,
and are repaid via separate rate
schedules and therefore are not
addressed in this Order.
On September 30, 2013, in Rate Order
No. SWPA–66, the Deputy Secretary of
Energy placed into effect
Southwestern’s Integrated System rate
schedules (P–13, NFTS–13, and EE–13)
on an interim basis for the period
October 1, 2013 to September 30, 2017.
The Federal Energy Regulatory
Commission (FERC) confirmed and
approved Southwestern’s interim
Integrated System rates on a final basis
on January 9, 2014 for a period ending
September 30, 2017.
Southwestern re-designated Integrated
System rate schedule ‘‘NFTS–13’’ as
‘‘NFTS–13A’’ with no revenue
adjustment. In Rate Order No. SWPA–
71, the Deputy Secretary of Energy
placed into effect Southwestern’s rate
schedule NFTS–13A on an interim basis
beginning January 1, 2017. FERC
confirmed and approved NFTS–13A on
a final basis on March 9, 2017.
On September 13, 2017, in Rate Order
No. SWPA–72, the Deputy Secretary of
Energy extended all of Southwestern’s
Integrated System rate schedules (P–13,
NTFS–13A, and EE–13) for two years,
for the period of October 1, 2017
through September 30, 2019.
Southwestern re-designated Integrated
System rate schedule ‘‘P–13’’ as ‘‘P–
13A’’ with no revenue adjustment. In
Rate Order No. SWPA–73, the Assistant
Secretary for Electricity placed into
effect Southwestern’s rate schedule P–
13A on an interim basis beginning July
15, 2019. FERC confirmed and approved
P–13A on a final basis on August 29,
2019.
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On September 22, 2019, in Rate Order
No. SWPA–74, the Assistant Secretary
for Electricity extended all of
Southwestern’s Integrated System rate
schedules (P–13A, NFTS–13A, EE–13)
for two years, for the period of October
1, 2019 through September 30, 2021.
On August 30, 2021, in Rate Order
No. SWPA–77, the Administrator,
Southwestern, extended all of
Southwestern’s Integrated System rate
schedules (P–13A, NFTS–13A, EE–13)
for two years, for the period of October
1, 2021 through September 30, 2023.
Southwestern must at times make
replacement capacity and energy
purchases to fulfill its contractual
obligations associated with the delivery
of Hydro Peaking Power as required
through the majority of Power Sales
Contracts that utilize Southwestern’s
Integrated System rate schedules.
Historically, a significant portion of
needed replacement power purchases
were made through pre-arranged
Purchase Power Agreements (PPAs),
many of which were capacity and
energy ‘‘call options’’ that allowed
Southwestern to schedule the energy as
needed after the historic Peaking Energy
Schedule Submission Time of 2:00 p.m.
Central Prevailing Time (CPT). In 2019,
Southwestern implemented a rate
schedule change to move the Peaking
Energy Schedule Submission Time to
2:30 p.m. CPT. To facilitate the 30minute shift in the Peaking Energy
Schedule Submission Time,
Southwestern negotiated with its
bilateral trading partners at the time to
shift the call option strike time later by
30 minutes as well. Over the last several
years, even prior to 2019, the role of
FERC-approved reliability transmission
organizations (RTOs) in Southwestern’s
marketing region has increased to the
point where the majority of
Southwestern’s traditional bi-lateral
trading partners are members of or
participants in RTO energy markets. The
regional organized day-ahead energy
markets close by 9:30 a.m. CPT, which
means that Southwestern’s call option
trading partners lose the opportunity to
bid their resources into the day-ahead
markets if they allow Southwestern to
wait until the afternoon to determine
whether to call on the capacity and
energy. Additionally, the planning
reserve margins for the RTOs
surrounding Southwestern have either
been increased or are in the process of
being increased which has led to
entities keeping their resources within
their own portfolios to ensure their own
resource adequacy. These two
complications have led to increased
pricing and decreased flexibility in the
bilateral PPA offers available to
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Southwestern as well as a decrease in
the availability of offers for firm,
deliverable capacity and energy in
recent months. As a strategy for
addressing this issue, Southwestern has
recently become a Market Participant of
the Midcontinent Independent System
Operator (MISO), which enables
Southwestern to purchase physical and
financial energy from the MISO DayAhead and Real-Time energy markets.
Southwestern is also exploring
becoming a Market Participant in the
Southwest Power Pool (SPP). Both the
MISO and SPP day-ahead energy
markets close bidding at 9:30 a.m. CPT
every day. In order to best utilize
regional organized day-ahead energy
markets as a cost-competitive and riskmanagement option for replacement
energy purchases, Southwestern must
have increased certainty about its
Peaking Energy obligations before 9:30
a.m. the day before the Peaking Energy
will be delivered. Further, Southwestern
expects that earlier day-ahead certainty
of Peaking Energy schedules will
provide Southwestern with additional
options when seeking new PPAs, as
Southwestern could accept a strike time
prior to the closing times of regional
organized day-ahead energy markets
and mitigate the lost opportunity
concerns of trading partners. Ultimately,
Southwestern’s effective participation in
regional organized day-ahead energy
markets as well as the ability to attract
more cost-competitive PPAs will best
ensure Southwestern can procure
sufficient energy to meet its contractual
obligations at the lowest costs while
limiting the purchase of unneeded
energy. Reduced risk and greater surety
in the delivery of Federal Power and
Energy, as well as any cost savings
realized by Southwestern, will be to the
benefit of all Integrated System
customers for which Southwestern has
the contractual obligation to provide
replacement power.
Therefore, Southwestern’s
Administrator determined that Section
4.2, Peaking Energy Schedule
Submission Time, should be modified
to establish the Peaking Energy
Schedule Submission Time as on or
before 8:30 a.m. Central Prevailing Time
(CPT) of the day preceding the day for
delivery of Peaking Energy.
Additionally, Section 4.2.2, Procedure
for Adjusting the Peaking Energy
Schedule Submission Time, which
allows the Southwestern Administrator
to adjust the Peaking Energy Schedule
Submission Time no more than once
annually should be updated to allow for
a submission time no earlier than 8:00
a.m. CPT and no later than 9:00 a.m.
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CPT. These updates are expected to
provide Southwestern with more
flexibility and greater certainty when
making replacement power purchases,
and better align Southwestern with
regional organized energy market
considerations. After considering
comments received, Southwestern’s
Administrator determined that a new
Section 4.2.3 should be added to
provide for an approximate two-month
transition period during which
customers will be allowed to reduce
their Peaking Energy schedules
submitted for the next day after the 8:30
a.m. Peaking Energy Schedule
Submission Time, provided that such
adjustments: (1) do not increase the
amount of Peaking Energy scheduled for
any one hour; (2) are limited to a 25
percent reduction in Peaking Energy
scheduled for any one hour; and (3) are
coordinated with Southwestern’s
Scheduling and Operations staff no later
than 2:00 p.m. on the day prior to
schedule implementation. The changes
to Rate Schedule P–13A, which will be
delineated as Rate Schedule P–13B, is a
change to a rate schedule in accordance
with 18 CFR part 300.
Public Notice and Comment
Notice of a proposed rate schedule
change was published in the Federal
Register April 5, 2023 (88 FR 20163).
The notice advised parties of the
Proposed Rate Schedule P–13B and an
associated public consultation and
comment period to provide for an open
and transparent process. Comments
were accepted through May 5, 2023.
Southwestern received five responses
containing comments on the Proposed
Rate Schedule P–13B. In finalizing the
Rate Schedule P–13B, Southwestern
reviewed and considered all comments
received during the public consultation
and comment period. The following is
a summary of comments received and
Southwestern’s response to those
comments.
Comment 1: Three commenters
acknowledged the regional capacity
challenges that Southwestern and other
entities are facing: Arkansas Electric
Cooperative Corporation (AECC)
‘‘understands the capacity situation that
exists’’; City Water and Light Plant of
the City of Jonesboro, Arkansas
(Jonesboro) ‘‘empathizes with the lack of
capacity that [Southwestern] and other
utilities in our region are facing’’; and
the Southwestern Power Resources
Association (SPRA), which represents
the interests of consumer-owned electric
systems that are customers of
Southwestern, ‘‘recognize[s] the difficult
position that [Southwestern] and all
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utilities in our region are facing with the
lack of capacity.’’
Response 1: As stated above, regional
capacity challenges are a driving factor
for Southwestern’s decision. Rate
Schedule P–13B allows Southwestern to
better align itself with the closing times
of regional organized day-ahead energy
markets, and therefore be better
positioned to utilize those markets and/
or enter into PPAs that provide
consideration of those markets to ensure
Southwestern is able to meet its mission
of marketing Federal hydropower at the
lowest possible costs.
Comment 2: Four commenters noted
that their Federal hydropower allocation
is a valuable portion of their energy
portfolios: AECC ‘‘appreciate[s] the great
value that [Southwestern] has provided
in the past few years’’; Associated
Electric Cooperative, Inc. (AECI) ‘‘views
its longstanding partnership with
[Southwestern] as integral to AECI’s
mission to provide the lowest cost and
reliable wholesale power to its
membership’’; Jonesboro’s ‘‘Federal
Hydropower Allocation is a critical
resource in [its] wholesale power
portfolio’’; and SPRA stated that
‘‘Federal hydropower is a valued piece
of the portfolio for the members of
SPRA.’’
Response 2: Southwestern works hard
to maintain and improve the value of
Federal hydropower in its region while
providing wholesale power to its
preference customers at the lowest
possible costs.
Comment 3: Three commenters
expressed appreciation for their
partnerships with Southwestern: AECC
‘‘appreciates [Southwestern] working
with customers’’; Jonesboro and
Southwestern ‘‘have a long history or
partnering to support the overall benefit
of all [Southwestern’s] customers’’ and
‘‘are very thankful for this partnership’’;
and SPRA has ‘‘long enjoyed working
with [Southwestern] to address
concerns that could threaten the value
or reliability of federal hydropower.’’
Response 3: Southwestern also
appreciates and works hard to foster the
collaborative relationship it has with its
customers.
Comment 4: ARKMO, a group
consisting of five municipally-owned
utilities, located in Northeast Arkansas
and Southeast Missouri, all of which are
Southwestern customers, stated that ‘‘as
small municipal utilities the ARKMO
group members are impacted
significantly through their
[Southwestern] rates. Because of this,
the ARKMO group is in support of
moving the peaking schedule
submission time to 8:30 a.m.’’
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Response 4: Southwestern appreciates
ARKMO’s acknowledgement of the
beneficial aspects of this rate schedule
change on its Integrated System
customers for which Southwestern has
the contractual obligation to provide
replacement power. As noted, the
purpose of this change is to facilitate
Southwestern’s effective participation in
regional organized day-ahead energy
markets and increase Southwestern’s
ability to attract more cost-competitive
PPAs.
Comment 5: ARKMO stated that the
proposed change will allow
Southwestern ‘‘to better manage their
resources. The ARKMO group is in
support of [Southwestern] making
strategic decisions to help maintain
lower rates for their customers.’’
Response 5: As noted above, this
change allows Southwestern to better
align itself with the closing times of
regional organized day-ahead energy
markets. Southwestern’s effective
participation in regional organized dayahead energy markets as well as the
ability to attract more cost-competitive
PPAs will best ensure Southwestern can
procure sufficient energy to meet its
contractual obligations at the lowest
costs while limiting the purchase of
unneeded energy. Reduced risk and
greater surety in the delivery of Federal
Power and Energy, as well as any cost
savings realized by Southwestern, will
be to the benefit of all Integrated System
customers for which Southwestern has
the contractual obligation to provide
replacement power, and will ensure
Southwestern meets its mission of
marketing Federal hydropower at the
lowest possible costs.
Comment 6: Three commenters
indicated a desire for Southwestern to
revisit the need for the Peaking Energy
Schedule Submission Time change in
the future to look for a more mutually
agreeable solution to Southwestern’s
capacity and energy concerns: AECC
hopes the conditions which have caused
the capacity situation that exists
‘‘change soon to allow for a return to the
scheduling timeline that exists today’’;
Jonesboro ‘‘respectfully encourage[s]
[Southwestern] to continue its
partnership with the customers and
evaluate solutions that (1) provide for
the lowest cost power purchase adder
and (2) provide for the overall
maximum benefit for [Southwestern]
customers’’; and SPRA is ’’ looking
forward to a robust conversation during
SPRA’s upcoming September meeting to
analyze the data that was gathered
during this time, and continuing to
work with [Southwestern] to produce
solutions which ensure the most value
for all federal hydropower customers.’’
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Response 6: Southwestern will
evaluate the impact of the Peaking
Energy Schedule Submission Time after
implementation and will continue to
informally and periodically discuss the
change as well as other possible
solutions with its customers. The ability
to optimize energy purchases via
regional organized day-ahead energy
markets will help alleviate its capacity
and energy shortage issues.
Southwestern will continue to monitor
its progress and engage its customers to
ensure the most effective use of the
Federal hydropower system consistent
with sound business principles.
Comment 7: Two commenters,
Jonesboro and SPRA, stated that
Southwestern should use a ‘‘temporary
solution that allows for the total
reduction of a peaking schedule made to
[Southwestern] by 8:30 a.m. by no more
than 25 percent of the total of each
individual hour submitted. Any
proposed reductions must be
coordinated with [Southwestern]
Operations and Merchant Staff and
completed by no later than 2:00 p.m. the
day prior to energy flow.’’
Response 7: As a result of informal
discussion with customers and in
response to comments received, to
mitigate some of the immediate impact
of this change Southwestern has
included a new Section 4.2.3 in Rate
Schedule P–13B that, for a transition
period of approximately two months,
allows customers to reduce their
Peaking Energy schedules submitted for
the next day after the 8:30 a.m. Peaking
Energy Schedule Submission Time,
provided that such adjustments: (1) do
not increase the amount of Peaking
Energy scheduled for any one hour; (2)
are limited to a 25 percent reduction in
Peaking Energy scheduled for any one
hour; and (3) are coordinated with
Southwestern’s Scheduling and
Operations staff no later than 2:00 p.m.
on the day prior to schedule
implementation.
Comment 8: Two commenters noted
that the Proposed Rate Schedule P–13B
will limit customers’ ability to optimize
their Federal hydropower resource in
day-ahead markets: AECC ‘‘estimates a
loss in energy value of 15–20 percent’’
and ‘‘a trim on the capacity of 82%’’
which ‘‘would have been a loss in value
for 2022 of 23%’’, and AECI stated that
‘‘limiting [Southwestern] customers’
flexibility to choose when to call on
peaking power in this way will drive
unnecessary cost increases to AECI’s
end-use members.’’
Response 8: Southwestern has
determined that purchased power from
regional organized energy markets is
one of the more cost-effective and viable
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replacement power options available.
Having more certainty about
Southwestern’s obligations to customers
prior to the closing times of regional
organized day-ahead energy markets
will ensure that when a resource
shortage occurs, Southwestern can
procure sufficient energy to meet its
obligations at the lowest costs while
limiting the purchase of unneeded
energy. Any cost savings realized by
Southwestern will be to the benefit of
all Integrated System customers for
which Southwestern has the contractual
obligation to provide replacement
power.
Comment 9: AECC stated it ‘‘would
appreciate [Southwestern’s] further
consideration of allowing for increased
flexibility, such as allowing a customer
to agree to trim capacity, keeping energy
the same, in return for allowing for the
customer to have the ability to offer the
energy into the market.’’
Response 9: Although this proposal
would lower Southwestern’s capacity
obligation, there would still be concerns
regarding Southwestern’s next-day
energy obligation and Southwestern’s
limited ability to optimize regional
organized day-ahead energy market
purchases. Southwestern has
determined that a Peaking Energy
Schedule Submission Time that is prior
to the closing times of regional
organized day-ahead energy markets is
in the best interest of Southwestern
customers overall. Southwestern
intends to move forward with Rate
Schedule P–13B, which allows the
Administrator to change the Peaking
Energy Schedule Submission Time no
more than once per year to a time no
earlier than 8:00 a.m. CPT and no later
than 9:00 a.m. CPT. Additionally, Rate
Schedule P–13B includes a new Section
4.2.3 that, for a transition period of
approximately two months, allows
customers limited ability to reduce their
Peaking Energy schedules submitted for
the next day after the 8:30 a.m. Peaking
Energy Schedule Submission Time.
Comment 10: AECC provided a
‘‘proposed revision to [Southwestern]
Rate Schedule P–13A’’ which updates
Section 4.2.2 to state the ‘‘Peaking
Energy Schedule Submission Time of
2:00 p.m. CPT, as noted in Section 4.2
of this Rate Schedule, may be adjusted
by the Administrator, Southwestern, to
a time no earlier than 8:30 a.m. CPT and
no later than 2:00 p.m. CPT.’’
Response 10: Southwestern has
determined that a Peaking Energy
Schedule Submission Time that is prior
to the closing times of regional
organized day-ahead energy markets is
in the best interest of Southwestern and
its Integrated System customers for
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which Southwestern has the contractual
obligation to provide replacement
power. Southwestern intends to move
forward with Rate Schedule P–13B,
which allows the Administrator to
change the Peaking Energy Schedule
Submission Time no more than once per
year to a time no earlier than 8:00 a.m.
CPT and no later than 9:00 a.m. CPT.
Additionally, in response to comments
received, Southwestern included a new
Section 4.2.3 in Rate Schedule P–13B
that, for a transition period of
approximately two months, allows
customers limited ability reduce their
Peaking Energy schedules submitted for
the next day after the 8:30 a.m. Peaking
Energy Schedule Submission Time.
Comment 11: AECI stated that the
‘‘unilateral change to [Southwestern’s]
Peaking Power Rate Schedule does not
constitute a minor rate adjustment as it
fails to adequately consider the
significant negative economic impact
that removal of the 2:30 p.m. peaking
energy submission time will have on
integrated system customers.’’
Response 11: ‘‘Minor rate adjustment’’
is a defined term under 10 CFR part
903.2. Under 10 CFR part 903.2,
determinations as to whether a rate
adjustment qualifies as ‘‘minor’’ are
based upon the revenue change to
Southwestern’s Integrated System as a
whole and not the subjective impacts on
an individual customer or set of
customers. This comment afforded
Southwestern an opportunity to
reexamine its initial classification of the
proposed change as a ‘‘minor rate
adjustment.’’ The terms ‘‘rate,’’ ‘‘rate
adjustment,’’ and ‘‘minor rate
adjustment’’ are all defined in 10 CFR
903.2. A pre-requisite to any change
being qualified as a ‘‘minor rate
adjustment’’ is that it involves a ‘‘rate’’
and that it constitutes a ‘‘rate
adjustment.’’ Upon further review,
Southwestern has determined that this
action does not meet the definition of a
‘‘rate adjustment,’’ and thus should not
be classified as a ‘‘minor rate
adjustment.’’ Under 10 CFR 903.2 a
‘‘rate adjustment’’ is defined as ‘‘a
change in an existing rate or rates, or the
establishment of a rate or rates for a new
service.’’ The definition goes on to
expressly state a rate adjustment ‘‘. . .
does not include a change in rate
schedule provisions or in contract terms
. . .’’ Instead, the action should be
classified simply as a change in the
terms or provisions of the ‘‘Rate
Schedule’’ that does not change the
existing ‘‘rates’’ (the monetary charges
or formula for computing such charges)
to Southwestern’s customers as
provided for in Rate Schedule P–13A.
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Comment 12: AECI stated
Southwestern’s ‘‘assertion that
switching to an earlier peaking power
submission deadline will increase its
ability to provide shortfall capacity presupposes that power will be available
during those needed hours. Thus,
[Southwestern’s] plan would on-balance
create at least as much uncertainty as it
attempts to resolve and would expose
[Southwestern] customers to greater
price risk in the organized markets.’’
Response 12: Southwestern has been
and is exposed to price risk through past
and present PPAs that have a variable
energy price based on a gas index or
energy market nodal pricing.
Additionally, such PPAs come with a
capacity premium. The ability to
optimize Southwestern’s participation
in regional organized day-ahead energy
markets through an earlier Peaking
Energy Schedule Submission Time
while maintaining optionality with
PPAs, as needed, will allow
Southwestern to better manage risk than
if Southwestern were to rely solely on
the recent PPA offers it has received.
Comment 13: AECI stated
Southwestern ‘‘provides no data
showing there are significant and
recurring capacity shortfalls.’’
Response 13: Southwestern has
experienced recurring capacity
shortfalls the last several years due to
both scheduled and unscheduled
maintenance outages. Long-term unit
outages (defined as an outage
anticipated to last longer than three
months) are reported weekly to
customers, including AECI, via a
Monday Morning Report, and short-term
outages were reported on that same
report until October 2021. Additionally,
Southwestern has provided outage
information via regular reports to its
customer organization, the
Southwestern Power Resources
Association (SPRA). Southwestern will
make information supporting the
assertion that it has experienced
significant and recurring capacity
shortfalls available on request.
Comment 14: AECI stated that ‘‘no
supporting data and hence no
substantial evidence underlies either
assertion’’ that ‘‘ ‘the number of PPAs
available to Southwestern has decreased
and the pricing of available PPAs has
increased’ ’’.
Response 14: In August 2022,
Southwestern issued a request for
proposals (RFP) for firm schedulable/
dispatchable capacity and associated
energy. No proposals were received.
Southwestern issued an RFP for firm
energy deliverable to Southwestern’s
transmission system in January and
February 2023. Three proposals were
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received but only one of them met
Southwestern’s requested requirements
but with energy pricing significantly
higher than historical rates. In April
2023, Southwestern received additional
proposals, none of which were for firm
deliverable capacity. All proposals
contained elements that were
significantly higher in cost than
historical responses. Even if more PPAs
were available to Southwestern,
participation in regional organized
energy markets offers an additional tool
for Southwestern to manage risk.
Comment 15: AECI stated that
Southwestern’s ‘‘scheduling rationale
appears to ironically rely on creating
‘better options when seeking new PPAs’
when the absence of previous PPAs is
driving the change.’’
Response 15: The current need for
Rate Schedule P–13B is to allow
Southwestern to better optimize its
participation in regional organized dayahead energy markets while
competitively priced, firm, deliverable
capacity and energy options are limited.
Southwestern plans to utilize both
regional organized energy markets as
well as PPAs, when competitive, to
manage risk and meet its contractual
obligations.
Comment 16: AECI stated that
‘‘amending the day-ahead peaking
scheduling requirement on all days of
the year for the entire capacity of the
integrated system, to guard against a
relatively rare convergence of high
customer needs, insufficient
hydropower resources, and insufficient
market liquidity is unnecessary and
inconsistent with [Southwestern’s]
mission under Section 5 of the Flood
Control Act of 1944 to encourage the
most widespread use at the lowest
possible rates of Federal hydropower
consistent with sound business
principles.’’
Response 16: As Southwestern moves
towards increased participation in
regional organized energy markets, it is
anticipated that Southwestern will
benefit from the earlier Peaking Energy
Schedule Submission Time through
having increased knowledge regarding
Peaking Energy obligations prior to
market close on a regular basis. This
will help Southwestern prevent against
either making purchases in excess of its
energy needs, thereby unnecessarily
increasing costs, or making purchases
less than its energy needs, at which
point the energy market liquidity is
significantly reduced when procuring
the remainder of needed energy.
Furthermore, no matter the rarity of the
situation at hand, Southwestern
contends the certainty of energy
delivery in accordance with our
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contractual obligations is paramount to
its mission in accordance with Section
5 of the Flood Control Act of 1944.
Comment 17: AECI provided a
‘‘proposed revision to [Southwestern]
Rate Schedule P–13A’’ Section 4.2.2
which would: (1) require that
‘‘Concurrent with the Peaking Energy
Schedule Submission Time, customers
designated by Administrator,
Southwestern, are required to submit to
Southwestern a preliminary Peaking
Energy Schedule for the second
following day’’ in addition to the dayahead peaking energy schedule by the
then in-effect Peaking Energy Schedule
Submission Time; (2) allow for the
‘‘Peaking Energy Schedule Submission
Time of 2:00 p.m. CPT’’ to be ‘‘adjusted
by the Administrator, Southwestern, to
a time no earlier than 8:30 a.m. CPT and
no later than 2:00 p.m. CPT’’; (3) require
that the Administrator ‘‘make a
determination daily on the need to
adjust the Peaking Energy Schedule
Submission Time, limited to the extent
conditions required, based on
preliminary Peaking Energy Schedules,
regional energy market conditions, and/
or operational considerations’’ and (4)
require that the Administrator ‘‘notify
customers of the determination to adjust
the Peaking Energy Schedule
Submission Time via electronic
communication no later than 7:30 a.m.
of the day the Peaking Energy Schedule
Submissions are due.’’
Response 17: The suggested changes
have been considered and Southwestern
has chosen not to implement any of the
changes for the following reasons: (1)
the preliminary two-day-ahead schedule
is allowed to change without any
restrictions prior to being submitted as
a final day-ahead schedule and therefore
cannot be reliably used by Southwestern
in making operational decisions; (2) the
analysis of a preliminary schedule and
daily determination of the Peaking
Energy Schedule Submission Time
creates a significant additional workload
and administrative burden for
Southwestern’s staff with no
corresponding benefit for customers
overall; (3) submission of a two-dayahead preliminary schedule is likely to
create a burden for a majority of
Southwestern’s customers, which
currently submit Peaking Energy
schedules prior to 8:30 a.m. CPT rather
than waiting until closer to the 2:30
p.m. CPT Peaking Energy Schedule
Submission Time as permitted by the
current Rate Schedule P–13A (although
the comment allows for Southwestern’s
Administrator to select specific
customers which are required to submit
a two-day-ahead schedule,
Southwestern applies rate schedule
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provisions equally to all customers); (4)
frequent changes to the Peaking Energy
Schedule Submission Time could easily
cause confusion among Southwestern’s
customers; (5) Southwestern desires to
develop rate schedules which are as
consistent as possible for its customers,
and frequent changes to the Peaking
Energy Schedule Submission Time
would increase volatility of daily
operations; and (6) as noted previously,
Southwestern has determined that a
Peaking Energy Schedule Submission
Time that is coordinated with the
closing times of regional organized dayahead energy markets is in the best
interest of Southwestern and its
Integrated System customers for which
Southwestern has the contractual
obligation to provide replacement
power. Southwestern intends to move
forward with Rate Schedule P–13B,
which allows the Administrator to
change the Peaking Energy Schedule
Submission Time no more than once per
year to a time no earlier than 8:00 a.m.
CPT and no later than 9:00 a.m. CPT.
Availability of Information
Information regarding Rate Schedule
P–13B, including public comments
received, is available for public review
in the offices of Southwestern Power
Administration, One West Third Street,
Suite 1500, Tulsa, Oklahoma 74103.
Southwestern in-effect rate schedules
are available on the Southwestern
website at www.energy.gov/swpa.
Administration’s Certification
Rate Schedule P–13B will repay all
costs of the Integrated System including
amortization of the power investment
consistent with the provisions of
Department of Energy Order No. RA
6120.2. In accordance with Delegation
Order No. 00–037.00B, effective
November 19, 2016, and Section 5 of the
Flood Control Act of 1944, the
Administrator has determined that Rate
Schedule P–13B is consistent with
applicable law and the lowest possible
rates consistent with sound business
principles.
Environment
Southwestern previously determined
that the rate change actions, placed into
effect on October 1, 2013, fit within the
following class of categorically excluded
actions as listed in Appendix B to
Subpart D of 10 CFR part 1021, DOE’s
Implementing Procedures and
Guidelines of the National
Environmental Policy Act of 1969, as
amended (42 U.S.C. 4321–4347): B4.4
(Electric power marketing rate changes).
Categorically excluded actions do not
require preparation of either an
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environmental impact statement or an
environmental assessment. On June 13,
2023, Southwestern determined that
categorical exclusion B4.4 applies to the
current action as well.
Order
In view of the foregoing, and pursuant
to delegated authority from the
Secretary of Energy, I hereby confirm,
approve, and place into effect on an
interim basis, effective July 15, 2023, the
Southwestern Integrated System Rate
Schedule P–13B which shall remain in
effect on an interim basis through
September 30, 2023, or the FERC
confirms and approves the rates on a
final basis.
Signing Authority
This document of the Department of
Energy was signed on June 30, 2023, by
Mike Wech, Administrator for
Southwestern 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
DOE. This administrative process in no
way alters the legal effect of this
document upon publication in the
Federal Register.
Signed in Washington, DC, on July 3, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
United States Department of Energy
Southwestern Power Administration
Rate Schedule P–13B 1 **
Wholesale Rates for Hydro Peaking Power
Effective
During the period October 1, 2013, through
September 30, 2023,** in accordance with
Federal Energy Regulatory Commission
(FERC) order issued in Docket No. EF14–1–
000 (Jan. 9, 2014), extension approved by the
Deputy Secretary in Docket No. EF14–1–002
(Sept. 13, 2017), modification approved by
FERC in Docket No. EF14–1–003 (Aug. 29,
2019), extension approved by Assistant
Secretary for Electricity in Rate Order No. 74
(Sept. 22, 2019), and extension approved by
the Administrator in Rate Order No. 77
(August 30, 2021).
1 Supersedes
Rate Schedule P–13A.
** Extended through September 30, 2023 by
approval of Rate Order No. SWPA–77 by the
Administrator, Southwestern Power
Administration.
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Available
In the marketing area of Southwestern
Power Administration (Southwestern),
described generally as the States of Arkansas,
Kansas, Louisiana, Missouri, Oklahoma, and
Texas.
Applicable
To wholesale Customers which have
contractual rights from Southwestern to
purchase Hydro Peaking Power and
associated energy (Peaking Energy and
Supplemental Peaking Energy).
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Character and Conditions of Service
Three-phase, alternating current, delivered
at approximately 60 Hertz, at the nominal
voltage(s), at the point(s) of delivery, and in
such quantities as are specified by contract.
1. Definitions of Terms
1.1. Ancillary Services
The services necessary to support the
transmission of capacity and energy from
resources to loads while maintaining reliable
operation of the System of Southwestern in
accordance with good utility practice, which
include the following:
1.1.1. Scheduling, System Control, and
Dispatch Service
Is provided by Southwestern as Balancing
Authority Area operator and is in regard to
interchange and load-match scheduling and
related system control and dispatch
functions.
1.1.2. Reactive Supply and Voltage Control
From Generation Sources Service
Is provided at transmission facilities in the
System of Southwestern to produce or absorb
reactive power and to maintain transmission
voltages within specific limits.
1.1.3. Regulation and Frequency Response
Service
Is the continuous balancing of generation
and interchange resources accomplished by
raising or lowering the output of on-line
generation as necessary to follow the
moment-by-moment changes in load and to
maintain frequency within a Balancing
Authority Area.
1.1.4. Spinning Operating Reserve Service
Maintains generating units on-line, but
loaded at less than maximum output, which
may be used to service load immediately
when disturbance conditions are experienced
due to a sudden loss of generation or load.
1.1.5. Supplemental Operating Reserve
Service
Provides an additional amount of operating
reserve sufficient to reduce Area Control
Error to zero within 10 minutes following
loss of generating capacity which would
result from the most severe single
contingency.
1.1.6. Energy Imbalance Service
Corrects for differences over a period of
time between schedules and actual hourly
deliveries of energy to a load. Energy
delivered or received within the authorized
bandwidth for this service is accounted for as
an inadvertent flow and is returned to the
providing party by the receiving party in
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accordance with standard utility practice or
a contractual arrangement between the
parties.
1.2. Customer
The entity which is utilizing and/or
purchasing Federal Power and Federal
Energy and services from Southwestern
pursuant to this Rate Schedule.
1.3. Demand Period
The period of time used to determine
maximum integrated rates of delivery for the
purpose of power accounting which is the
60-minute period that begins with the change
of hour.
1.4. Federal Power and Energy
The power and energy provided from the
System of Southwestern.
1.5. Hydro Peaking Power
The Federal Power that Southwestern sells
and makes available to the Customers
through their respective Power Sales
Contracts in accordance with this Rate
Schedule.
1.6. Peaking Billing Demand
The quantity equal to the Peaking Contract
Demand for any month unless otherwise
provided by the Customer’s Power Sales
Contract.
1.7. Peaking Contract Demand
The maximum rate in kilowatts at which
Southwestern is obligated to deliver Federal
Energy associated with Hydro Peaking Power
as set forth in the Customer’s Power Sales
Contract.
1.8. Peaking Energy
The Federal Energy associated with Hydro
Peaking Power that Southwestern sells and
makes available to the Customer in
accordance with the terms and conditions of
the Customer’s Power Sales Contract.
1.9. Peaking Energy Schedule Submission
Time
The time by which Southwestern requires
the Customer to submit Peaking Energy
schedules to Southwestern as provided for in
this Rate Schedule and in accordance with
the terms and conditions of the Customer’s
Power Sales Contract.
1.10. Power Sales Contract
The Customer’s contract with
Southwestern for the sale of Federal Power
and Federal Energy.
1.11. Supplemental Peaking Energy
The Federal Energy associated with Hydro
Peaking Power that Southwestern sells and
makes available to the Customer if
determined by Southwestern to be available
and that is in addition to the quantity of
Peaking Energy purchased by the Customer
in accordance with the terms and conditions
of the Customer’s Power Sales Contract.
1.12. System of Southwestern
The transmission and related facilities
owned by Southwestern, and/or the
generation, transmission, and related
facilities owned by others, the capacity of
which, by contract, is available to and
utilized by Southwestern to satisfy its
contractual obligations to the Customer.
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1.13. Uncontrollable Force
Any force which is not within the control
of the party affected, including, but not
limited to failure of water supply, failure of
facilities, flood, earthquake, storm, lightning,
fire, epidemic, riot, civil disturbance, labor
disturbance, sabotage, war, act of war,
terrorist acts, or restraint by court of general
jurisdiction, which by exercise of due
diligence and foresight such party could not
reasonably have been expected to avoid.
2. Wholesale Rates, Terms, and Conditions
for Hydro Peaking Power, Peaking Energy,
Supplemental Peaking Energy, and
Associated Services
Unless otherwise specified, this Section 2
is applicable to all sales under the
Customer’s Power Sales Contract.
2.1. Hydro Peaking Power Rates, Terms, and
Conditions
2.1.1. Monthly Capacity Charge for Hydro
Peaking Power
$4.50 per kilowatt of Peaking Billing
Demand.
2.1.2. Services Associated With Capacity
Charge for Hydro Peaking Power
The capacity charge for Hydro Peaking
Power includes such transmission services as
are necessary to integrate Southwestern’s
resources in order to reliably deliver Hydro
Peaking Power and associated energy to the
Customer. This capacity charge also includes
two Ancillary Services charges: Scheduling,
System Control, and Dispatch Service; and
Reactive Supply and Voltage Control from
Generation Sources Service.
2.1.3. Secondary Transmission Service Under
Capacity Associated With Hydro Peaking
Power
Customers may utilize the transmission
capacity associated with Peaking Contract
Demand for the transmission of non-Federal
energy, on a non-firm, as-available basis, at
no additional charge for such transmission
service or associated Ancillary Services,
under the following terms and conditions:
2.1.3.1. The sum of the capacity, for any
hour, which is used for Peaking Energy,
Supplemental Peaking Energy, and
Secondary Transmission Service, may not
exceed the Peaking Contract Demand;
2.1.3.2. The non-Federal energy
transmitted under such secondary service is
delivered to the Customer’s point of delivery
for Hydro Peaking Power;
2.1.3.3. The Customer commits to provide
Real Power Losses associated with such
deliveries of non-Federal energy; and
2.1.3.4. Sufficient transfer capability exists
between the point of receipt into the System
of Southwestern of such non-Federal energy
and the Customer’s point of delivery for
Hydro Peaking Power for the time period that
such secondary transmission service is
requested.
2.1.4. Adjustment for Reduction in Service
If, during any month, the Peaking Contract
Demand associated with a Power Sales
Contract in which Southwestern has the
obligation to provide 1,200 kilowatthours of
Peaking Energy per kilowatt of Peaking
Contract Demand is reduced by
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Southwestern for a period or periods of not
less than two consecutive hours by reason of
an outage caused by either an Uncontrollable
Force or by the installation, maintenance,
replacement or malfunction of generation,
transmission and/or related facilities on the
System of Southwestern, or insufficient pool
levels, the Customer’s capacity charges for
such month will be reduced for each such
reduction in service by an amount computed
under the formula:
R = (C × K × H) ÷ S
with the factors defined as follows:
R = The dollar amount of reduction in the
monthly total capacity charges for a
particular reduction of not less than two
consecutive hours during any month,
except that the total amount of any such
reduction shall not exceed the product of
the Customer’s capacity charges
associated with Hydro Peaking Power
times the Peaking Billing Demand.
C = The Customer’s capacity charges
associated with Hydro Peaking Power for
the Peaking Billing Demand for such
month.
K = The reduction in kilowatts in Peaking
Billing Demand for a particular event.
H = The number of hours duration of such
particular reduction.
S = The number of hours that Peaking Energy
is scheduled during such month, but not
less than 60 hours times the Peaking
Contract Demand.
Such reduction in charges shall fulfill
Southwestern’s obligation to deliver Hydro
Peaking Power and Peaking Energy.
2.2. Peaking Energy and Supplemental
Peaking Energy Rates, Terms, and Conditions
2.2.1. Peaking Energy Charge
$0.0094 per kilowatthour of Peaking
Energy delivered plus the Purchased Power
Adder as defined in Section 2.2.3 of this Rate
Schedule.
2.2.2. Supplemental Energy Charge
$0.0094 per kilowatthour of Supplemental
Peaking Energy delivered.
2.2.3. Purchased Power Adder
A purchased power adder of $0.0059 per
kilowatthour of Peaking Energy delivered, as
adjusted by the Administrator, Southwestern,
in accordance with the procedure within this
Rate Schedule.
2.2.3.1. Applicability of Purchased Power
Adder
The Purchased Power Adder shall apply to
sales of Peaking Energy. The Purchased
Power Adder shall not apply to sales of
Supplemental Peaking Energy or sales to any
Customer which, by contract, has assumed
the obligation to supply energy to fulfill the
minimum of 1,200 kilowatthours of Peaking
Energy per kilowatt of Peaking Contract
Demand during a contract year (hereinafter
‘‘Contract Support Arrangements’’).
2.2.3.2. Procedure for Determining Net
Purchased Power Adder Adjustment
Not more than twice annually, the
Purchased Power Adder of $0.0059 (5.9
mills) per kilowatthour of Peaking Energy, as
noted in this Rate Schedule, may be adjusted
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by the Administrator, Southwestern, by an
amount up to a total of ±$0.0059 (5.9 mills)
per kilowatthour per year, as calculated by
the following formula:
ADJ = (PURCH¥EST + DIF) ÷ SALES
with the factors defined as follows:
ADJ = The dollar per kilowatthour amount of
the total adjustment, plus or minus, to be
applied to the net Purchased Power
Adder, rounded to the nearest $0.0001
per kilowatthour, provided that the total
ADJ to be applied in any year shall not
vary from the then-effective ADJ by more
than $0.0059 per kilowatthour;
PURCH = The actual total dollar cost of
Southwestern’s System Direct Purchases
as accounted for in the financial records
of the Southwestern Federal Power
System for the period;
EST = The estimated total dollar cost
($13,273,800 per year) of Southwestern’s
System Direct Purchases used as the
basis for the Purchased Power Adder of
$0.0059 per kilowatthour of Peaking
Energy;
DIF = The accumulated remainder of the
difference in the actual and estimated
total dollar cost of Southwestern’s
System Direct Purchases since the
effective date of the currently approved
Purchased Power Adder set forth in this
Rate Schedule, which remainder is not
projected for recovery through the ADJ in
any previous periods;
SALES = The annual Total Peaking Energy
sales projected to be delivered
(2,241,300,000 KWh per year) from the
System of Southwestern, which total was
used as the basis for the $0.0059 per
kilowatthour Purchased Power Adder.
2.3. Transformation Service Rates, Terms,
and Conditions
2.3.1. Monthly Capacity Charge for
Transformation Service
$0.46 per kilowatt will be assessed for
capacity used to deliver energy at any point
of delivery at which Southwestern provides
transformation service for deliveries at
voltages of 69 kilovolts or less from higher
voltage facilities.
2.3.2. Applicability of Capacity Charge for
Transformation Service
Unless otherwise specified by contract, for
any particular month, a charge for
transformation service will be assessed on
the greater of (1) that month’s highest
metered demand, or (2) the highest metered
demand recorded during the previous 11
months, at any point of delivery. For the
purpose of this Rate Schedule, the highest
metered demand will be based on all
deliveries, of both Federal and non-Federal
energy, from the System of Southwestern, at
such point during such month.
2.4. Ancillary Services Rates, Terms, and
Conditions
2.4.1. Capacity Charges for Ancillary Services
2.4.1.1. Regulation and Frequency Response
Service
Monthly rate of $0.07 per kilowatt of
Peaking Billing Demand plus the Regulation
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Purchased Adder as defined in Section 2.4.5
of this Rate Schedule.
2.4.1.2. Spinning Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of
Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for nonFederal generation inside Southwestern’s
Balancing Authority Area.
2.4.1.3. Supplemental Operating Reserve
Service
Monthly rate of $0.0146 per kilowatt of
Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for nonFederal generation inside Southwestern’s
Balancing Authority Area.
2.4.1.4. Energy Imbalance Service
$0.0 per kilowatt for all reservation
periods.
2.4.2. Availability of Ancillary Services
Regulation and Frequency Response
Service and Energy Imbalance Service are
available only for deliveries of power and
energy to load within Southwestern’s
Balancing Authority Area. Spinning
Operating Reserve Service and Supplemental
Operating Reserve Service are available only
for deliveries of non-Federal power and
energy generated by resources located within
Southwestern’s Balancing Authority Area
and for deliveries of all Hydro Peaking Power
and associated energy from and within
Southwestern’s Balancing Authority Area.
Where available, such Ancillary Services
must be taken from Southwestern; unless,
arrangements are made in accordance with
Section 2.4.4 of this Rate Schedule.
2.4.3. Applicability of Charges for Ancillary
Services
For any month, the charges for Ancillary
Services for deliveries of Hydro Peaking
Power shall be based on the Peaking Billing
Demand.
The daily charge for Spinning Operating
Reserve Service and Supplemental Operating
Reserve Service for non-Federal generation
inside Southwestern’s Balancing Authority
Area shall be applied to the greater of
Southwestern’s previous day’s estimate of the
peak, or the actual peak, in kilowatts, of the
internal non-Federal generation.
2.4.4. Provision of Ancillary Services by
Others
Customers for which Ancillary Services are
made available as specified above, must
inform Southwestern by written notice of the
Ancillary Services which they do not intend
to take and purchase from Southwestern, and
of their election to provide all or part of such
Ancillary Services from their own resources
or from a third party.
Subject to Southwestern’s approval of the
ability of such resources or third parties to
meet Southwestern’s technical and
operational requirements for provision of
such Ancillary Services, the Customer may
change the Ancillary Services which it takes
from Southwestern and/or from other sources
at the beginning of any month upon the
greater of 60 days notice or upon completion
of any necessary equipment modifications
necessary to accommodate such change;
Provided, That, if the Customer chooses not
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to take Regulation and Frequency Response
Service, which includes the associated
Regulation Purchased Adder, the Customer
must pursue these services from a different
host Balancing Authority; thereby moving all
metered loads and resources from
Southwestern’s Balancing Authority Area to
the Balancing Authority Area of the new host
Balancing Authority. Until such time as that
meter reconfiguration is accomplished, the
Customer will be charged for the Regulation
and Frequency Response Service and
applicable Adder then in effect. The
Year
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2014
2015
2016
2017
Customer must notify Southwestern by July
1 of this choice, to be effective the
subsequent calendar year.
2.4.5. Regulation Purchased Adder
Southwestern has determined the amount
of energy used from storage to provide
Regulation and Frequency Response Service
in order to meet Southwestern’s Balancing
Authority Area requirements. The
replacement value of such energy used shall
be recovered through the Regulation
Purchased Adder. The Regulation Purchased
⁄ of the
⁄ of the
3⁄4 of the
The total
14
12
average
average
average
average
annual
annual
annual
annual
use
use
use
use
of
of
of
of
energy
energy
energy
energy
from
from
from
from
storage
storage
storage
storage
× 2014 Purchased Power price.
× 2015 Purchased Power price.
× 2016 Purchased Power price.
× the applicable Purchased Power price.
2.4.5.1. Applicability of Regulation
Purchased Adder
The replacement value of the estimated
annual use of energy from storage for
Regulation and Frequency Response Service
shall be recovered by Customers located
within Southwestern’s Balancing Authority
Area on a non-coincident peak ratio share
basis, divided into twelve equal monthly
payments, in accordance with the formula in
Section 2.4.5.2.
If the Regulation Purchased Adder is
determined and applied under
Southwestern’s Rate Schedule NFTS–13,
then it shall not be applied here.
2.4.5.2. Procedure for Determining
Regulation Purchased Adder
Unless otherwise specified by contract, the
Regulation Purchased Adder for an
individual Customer shall be based on the
following formula rate, calculated to include
the replacement value of the estimated
annual use of energy from storage by
Southwestern for Regulation and Frequency
Response Service.
RPA = The Regulation Purchased Adder for
an individual Customer per month,
which is as follows:
[(LCustomer ÷ LTotal) × RPTotal ] ÷ 12
with the factors defined as follows:
LCustomer = The sum in MW of the following
three factors:
(1) The Customer’s highest metered load
plus generation used to serve the
Customer’s load that is accounted for
through a reduction in the Customer’s
metered load (referred to as ‘generation
behind the meter’) during the previous
calendar year, and
(2) The Customer’s highest rate of
Scheduled Exports 2 during the previous
calendar year, and
(3) The Customer’s highest rate of
Scheduled Imports 2 during the previous
calendar year.
LTotal = The sum of all LCustomer factors for all
Customers that were inside
Southwestern’s Balancing Authority
Area at the beginning of the previous
calendar year in MW.
RPTotal = The ‘‘net’’ cost in dollars and cents
based on Southwestern’s estimated
purchased power price for the
corresponding year from the most
currently approved Power Repayment
Studies multiplied by the average annual
use of energy from storage, as provided
for in the table in Section 2.4.5, to
support Southwestern’s ability to
regulate within its Balancing Authority
Area. The ‘‘net’’ cost in dollars and cents
shall be adjusted by subtracting the
product of the quantity of such average
annual use of energy from storage in
MWh and Southwestern’s highest rate in
dollars per MWh for Supplemental
Peaking Energy during the previous
calendar year.
For Customers that have aggregated their
load, resources, and scheduling into a single
node by contract within Southwestern’s
Balancing Authority Area, the individual
Customer’s respective Regulation Purchased
Adder shall be that Customer’s ratio share of
the Regulation Purchased Adder established
for the node. Such ratio share shall be
determined for the Customer on a noncoincident basis and shall be calculated for
the Customer from their highest metered load
plus generation behind the meter.
1 The average annual use of energy from storage
for Regulation and Frequency Response Service is
based on Southwestern studies.
2 Scheduled Exports and Scheduled Imports are
transactions, such as sales and purchases
respectively, which are in addition to a Customer’s
18:55 Jul 06, 2023
Adder during the time period of January 1
through December 31 of the current calendar
year is based on the average annual use of
energy from storage 1 for Regulation and
Frequency Response Service and
Southwestern’s estimated purchased power
price for the corresponding year from the
most currently approved Power Repayment
Studies.
The Regulation Purchased Adder will be
phased in over a period of four (4) years as
follows:
Regulation purchased adder for the incremental replacement value of energy used from storage
................................................
................................................
................................................
and thereafter ........................
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2.4.6. Energy Imbalance Service Limitations
Energy Imbalance Service primarily
applies to deliveries of power and energy
which are required to satisfy a Customer’s
load. As Hydro Peaking Power and associated
energy are limited by contract, the Energy
Imbalance Service bandwidth specified for
Non-Federal Transmission Service does not
apply to deliveries of Hydro Peaking Power,
and therefore Energy Imbalance Service is
not charged on such deliveries. Customers
who consume a capacity of Hydro Peaking
Power greater than their Peaking Contract
Demand may be subject to a Capacity
Overrun Penalty.
PO 00000
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3. Hydro Peaking Power Penalties, Terms,
and Conditions
3.1. Capacity Overrun Penalty
3.1.1. Penalty Charge for Capacity Overrun
For each hour during which Hydro Peaking
Power was provided at a rate greater than
that to which the Customer is entitled, the
Customer will be charged a Capacity Overrun
Penalty at the following rates:
Months associated with
charge
March, April, May, October,
November, December .......
January, February, June,
July, August, September ...
Rate per
kilowatt
$0.15
0.30
3.1.2. Applicability of Capacity Overrun
Penalty
Customers which have loads within
Southwestern’s Balancing Authority Area are
obligated by contract to provide resources,
over and above the Hydro Peaking Power and
associated energy purchased from
Southwestern, sufficient to meet their loads.
A Capacity Overrun Penalty shall be applied
only when the formulas provided in
Customers’ respective Power Sales Contracts
indicate an overrun on Hydro Peaking Power,
and investigation determines that all
resources, both firm and non-firm, which
were available at the time of the apparent
overrun were insufficient to meet the
Customer’s load.
3.2. Energy Overrun Penalty
3.2.1. Penalty Charge for Energy Overrun
$0.1034 per kilowatthour for each
kilowatthour of overrun.
3.2.2. Applicability of Energy Overrun
Penalty
By contract, the Customer is subject to
limitations on the maximum amounts of
Peaking Energy which may be scheduled
under the Customer’s Power Sales Contract.
When the Customer schedules an amount in
metered load that contribute to Southwestern’s
Balancing Authority Area need for regulation.
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Federal Register / Vol. 88, No. 129 / Friday, July 7, 2023 / Notices
3.3.1. Requirements Related to Power Factor
Any Customer served from facilities owned
by or available by contract to Southwestern
will be required to maintain a power factor
of not less than 95 percent and will be
subject to the following provisions.
3.3.2. Determination of Power Factor
The power factor will be determined for all
Demand Periods and shall be calculated
under the formula:
option, whether the power factor calculation
more accurately assesses the detrimental
impact on Southwestern’s system when the
above formula is calculated for a single
physical point of delivery, a combination of
physical points of delivery, or for an
interconnection as specified by an
Interconnection Agreement.
Southwestern, at its sole option, may
reduce or waive Power Factor Penalties
when, in Southwestern’s sole judgment, low
power factor conditions were not detrimental
to the System of Southwestern due to
particular loading and voltage conditions at
the time the power factor dropped below 95
percent lagging.
with the factors defined as follows:
PF = The power factor for any Demand
Period of the month.
kWh = The total quantity of energy which is
delivered during such Demand Period to
the point of delivery or interconnection
in accordance with Section 3.3.4.
rkVAh = The total quantity of reactive
kilovolt-ampere-hours (kVARs) delivered
during such Demand Period to the point
of delivery or interconnection in
accordance with Section 3.3.4. {tc\l ‘‘2.2
Reservation Priority For Existing Firm
Service Customers’’}
3.3.3. Penalty Charge for Power Factor
The Customer shall be assessed a penalty
for all Demand Periods of a month where the
power factor is less than 95 percent lagging.
For any Demand Period during a particular
month such penalty shall be in accordance
with the following formula:
C = D × (0.95¥LPF) × $0.10
with the factors defined as follows:
C = The charge in dollars to be assessed for
any particular Demand Period of such
month that the determination of power
factor ‘‘PF’’ is calculated to be less than
95 percent lagging.
D = The Customer’s demand in kilowatts at
the point of delivery for such Demand
Period in which a low power factor was
calculated.
LPF = The lagging power factor, if any,
determined by the formula ‘‘PF’’ for such
Demand Period.
If C is negative, then C = zero (0).
3.3.4. Applicability of Power Factor Penalty
The Power Factor Penalty is applicable to
radial interconnections with the System of
Southwestern. The total Power Factor
Penalty for any month shall be the sum of all
charges ‘‘C’’ for all Demand Periods of such
month. No penalty is assessed for leading
power factor. Southwestern, in its sole
judgment and at its sole option, may
determine whether power factor calculations
should be applied to (i) a single physical
point of delivery, (ii) a combination of
physical points of delivery where a Customer
has a single, electrically integrated load, (iii)
or interconnections. The general criteria for
such decision shall be that, given the
configuration of the Customer’s and
Southwestern’s systems, Southwestern will
determine, in its sole judgment and at its sole
4. Hydro Peaking Power Miscellaneous Rates,
Terms, and Conditions {tc\12 ‘‘2 Initial
Allocation and Renewal Procedures’’}
4.1. Real Power Losses {tc\13 ‘‘2.1 Initial
Allocation and Renewal Procedures’’}
Customers are required to self-provide all
Real Power Losses for non-Federal energy
transmitted by Southwestern on behalf of
such Customers under the provisions
detailed below.
Real Power Losses are computed as four (4)
percent of the total amount of non-Federal
energy transmitted by Southwestern. The
Customer’s monthly Real Power Losses are
computed each month on a megawatthour
basis as follows:
ML = 0.04 × NFE
with the factors defined as follows:
ML = The total monthly loss energy, rounded
to the nearest megawatthour, to be
scheduled by a Customer for receipt by
Southwestern for Real Power Losses
associated with non-Federal energy
transmitted on behalf of such Customer;
and
NFE = The amount of non-Federal energy
that was transmitted by Southwestern on
behalf of a Customer during a particular
month.
The Customer must schedule or cause to be
scheduled to Southwestern, Real Power
Losses for which it is responsible subject to
the following conditions:
4.1.1. The Customer shall schedule and
deliver Real Power Losses back to
Southwestern during the second month after
they were incurred by Southwestern in the
transmission of the Customer’s non-Federal
power and energy over the System of
Southwestern unless such Customer has
accounted for Real Power Losses as part of
a metering arrangement with Southwestern.
4.1.2. On or before the twentieth day of
each month, Southwestern shall determine
the amount of non-Federal loss energy it
provided on behalf of the Customer during
the previous month and provide a written
schedule to the Customer setting forth hourby-hour the quantities of non-Federal energy
to be delivered to Southwestern as losses
during the next month.
4.1.3. Real Power Losses not delivered to
Southwestern by the Customer, according to
the schedule provided, during the month in
which such losses are due shall be billed by
Southwestern to the Customer to adjust the
end-of-month loss energy balance to zero (0)
megawatthours and the Customer shall be
ddrumheller on DSK120RN23PROD with NOTICES1
excess of such maximum amounts, such
Customer is subject to the Energy Overrun
Penalty.
3.3. Power Factor Penalty
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PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
obliged to purchase such energy at the
following rates:
Months associated with
charge
Rate per
kilowatthour
March, April, May, October,
November, December .......
January, February, June,
July, August, September ...
$0.15
0.30
4.1.4. Real Power Losses delivered to
Southwestern by the Customer in excess of
the losses due during the month shall be
purchased by Southwestern from the
Customer at a rate per megawatthour equal to
Southwestern’s rate per megawatthour for
Supplemental Peaking Energy, as set forth in
Southwestern’s then-effective Rate Schedule
for Hydro Peaking Power to adjust such
hourly end-of-month loss energy balance to
zero (0) megawatthours.
4.2. Peaking Energy Schedule Submission
Time
Southwestern’s Peaking Energy Schedule
Submission Time is on or before 8:30 a.m.
Central Prevailing Time (CPT), as adjusted by
the Administrator, Southwestern, in
accordance with Section 4.2.2 in this Rate
Schedule, of the day preceding the day for
the delivery of Peaking Energy. The Peaking
Energy Schedule Submission Time
supersedes the Peaking Energy schedule
submission time provided in the Customer’s
Power Sales Contract, pursuant to Section
4.2.1 of this Rate Schedule. Reductions to
Peaking Energy schedules may be made in
accordance with Section 4.2.3 of this Rate
Schedule.
4.2.1. Applicability of Peaking Energy
Schedule Submission Time
The Peaking Energy Schedule Submission
Time shall apply to the scheduling of
Peaking Energy. The Peaking Energy
Schedule Submission Time shall not apply to
the scheduling of Supplemental Peaking
Energy or to Contract Support Arrangements.
4.2.2. Procedure for Adjusting the Peaking
Energy Schedule Submission Time
Not more than once annually, the Peaking
Energy Schedule Submission Time of 8:30
a.m. CPT, as noted in Section 4.2 of this Rate
Schedule, may be adjusted by the
Administrator, Southwestern, to a time no
earlier than 8:00 a.m. CPT and no later than
9:00 a.m. CPT.
4.2.2.1. Determination of Need To Adjust the
Peaking Energy Schedule Submission Time
The Administrator, Southwestern, will
make a determination on the need to adjust
the Peaking Energy Schedule Submission
Time based on Southwestern’s studies
involving financial analysis, regional energy
market conditions, and/or operational
considerations.
4.2.2.2. Notification of Peaking Energy
Schedule Submission Time Adjustment
The Administrator, Southwestern, will
notify customers of the determination to
adjust the Peaking Energy Schedule
Submission Time in writing no later than 30
calendar days prior to the effective date of
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Federal Register / Vol. 88, No. 129 / Friday, July 7, 2023 / Notices
the Peaking Energy Schedule Submission
Time adjustment.
4.2.3. Reductions to Peaking Energy
Schedules After the Peaking Energy Schedule
Submission Time
Customers may reduce Peaking Energy
Schedules submitted for July 15, 2023,
through September 15, 2023, after the
Peaking Energy Schedule Submission Time
in accordance with this Section 4.2.3. Such
changes must be coordinated with
Southwestern Scheduling and Operations
staff no later than 2:00 p.m. CPT the day
prior to schedule implementation.
4.2.3.1. Customers must submit a Peaking
Energy Schedule by the Peaking Energy
Schedule Submission Time.
4.2.3.2. For hours the Customer has
scheduled a non-zero energy amount, the
Customer may reduce the amount of Peaking
Energy scheduled for that same hour by no
more than 25 percent. Customers may not
increase the Peaking Energy scheduled for
any hour.
4.2.3.3. For determining the 25 percent
Peaking Energy hourly reduction limit,
fractional megawatt reductions will round to
the nearest whole megawatt. Values ending
in 0.01 to 0.49 will round down and values
ending in 0.50 to 0.99 will round up.
4.2.3.4. Customers choosing to reduce the
Peaking Energy Schedule must adjust the
applicable transaction tag to reflect the
desired reductions no later than 2:00 CPT the
day prior to schedule implementation.
[FR Doc. 2023–14401 Filed 7–6–23; 8:45 am]
BILLING CODE P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL OP–OFA–076]
ddrumheller on DSK120RN23PROD with NOTICES1
Environmental Impact Statements;
Notice of Availability
Responsible Agency: Office of Federal
Activities, General Information 202–
564–5632 or https://www.epa.gov/nepa.
Weekly receipt of Environmental Impact
Statements (EIS)
Filed June 26, 2023 10 a.m. EST
Through June 30, 2023 10 a.m. EST
Pursuant to 40 CFR 1506.9.
Notice: Section 309(a) of the Clean Air
Act requires that EPA make public its
comments on EISs issued by other
Federal agencies. EPA’s comment letters
on EISs are available at: https://
cdxapps.epa.gov/cdx-enepa-II/public/
action/eis/search.
EIS No. 20230082, Final, BLM, CO,
Proposed Eastern Colorado Resource
Management Plan and Environmental
Impact Statement, Review Period
Ends: 08/07/2023, Contact: Doug
Vilsack, BLM CO State Director 303–
239–3700.
EIS No. 20230083, Final, FERC, TN,
Cumberland Project, Review Period
VerDate Sep<11>2014
18:55 Jul 06, 2023
Jkt 259001
Ends: 08/07/2023, Contact: Office of
External Affairs 866–208–3372.
Dated: June 30, 2023.
Cindy S. Barger,
Director, NEPA Compliance Division, Office
of Federal Activities.
[FR Doc. 2023–14291 Filed 7–6–23; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
[OMB 3060–1028; FR ID 151822]
Information Collection Being
Submitted for Review and Approval to
Office of Management and Budget
Federal Communications
Commission.
ACTION: Notice and request for
comments.
AGENCY:
As part of its continuing effort
to reduce paperwork burdens, as
required by the Paperwork Reduction
Act (PRA) of 1995, the Federal
Communications Commission (FCC or
the Commission) invites the general
public and other Federal Agencies to
take this opportunity to comment on the
following information collection.
Pursuant to the Small Business
Paperwork Relief Act of 2002, the FCC
seeks specific comment on how it can
further reduce the information
collection burden for small business
concerns with fewer than 25 employees.
DATES: Written comments and
recommendations for the proposed
information collection should be
submitted on or before August 7, 2023.
ADDRESSES: Comments should be sent to
www.reginfo.gov/public/do/PRAMain.
Find this particular information
collection by selecting ‘‘Currently under
30-day Review—Open for Public
Comments’’ or by using the search
function. Your comment must be
submitted into www.reginfo.gov per the
above instructions for it to be
considered. In addition to submitting in
www.reginfo.gov also send a copy of
your comment on the proposed
information collection to Cathy
Williams, FCC, via email to PRA@
fcc.gov and to Cathy.Williams@fcc.gov.
Include in the comments the OMB
control number as shown in the
SUPPLEMENTARY INFORMATION below.
FOR FURTHER INFORMATION CONTACT: For
additional information or copies of the
information collection, contact Cathy
Williams at (202) 418–2918. To view a
copy of this information collection
request (ICR) submitted to OMB: (1) go
to the web page https://www.reginfo.gov/
SUMMARY:
PO 00000
Frm 00085
Fmt 4703
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43347
public/do/PRAMain, (2) look for the
section of the web page called
‘‘Currently Under Review,’’ (3) click on
the downward-pointing arrow in the
‘‘Select Agency’’ box below the
‘‘Currently Under Review’’ heading, (4)
select ‘‘Federal Communications
Commission’’ from the list of agencies
presented in the ‘‘Select Agency’’ box,
(5) click the ‘‘Submit’’ button to the
right of the ‘‘Select Agency’’ box, (6)
when the list of FCC ICRs currently
under review appears, look for the Title
of this ICR and then click on the ICR
Reference Number. A copy of the FCC
submission to OMB will be displayed.
SUPPLEMENTARY INFORMATION: The
Commission may not conduct or
sponsor a collection of information
unless it displays a currently valid
Office of Management and Budget
(OMB) control number. No person shall
be subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid OMB control number.
As part of its continuing effort to
reduce paperwork burdens, as required
by the Paperwork Reduction Act (PRA)
of 1995 (44 U.S.C. 3501–3520), the FCC
invited the general public and other
Federal Agencies to take this
opportunity to comment on the
following information collection.
Comments are requested concerning: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
burden estimates; (c) ways to enhance
the quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology. Pursuant to the
Small Business Paperwork Relief Act of
2002, Public Law 107–198, see 44 U.S.C.
3506(c)(4), the FCC seeks specific
comment on how it might ‘‘further
reduce the information collection
burden for small business concerns with
fewer than 25 employees.’’
OMB Control No.: 3060–1028.
Title: International Signaling Point
Code (ISPC).
Form No.: N/A.
Type of Review: Revision of a
currently approved collection.
Respondents: Business or other forprofit entities.
Number of Respondents: 11
respondents; 20 responses.
Estimated Time per Response: 0.5
hours–3 hours.
E:\FR\FM\07JYN1.SGM
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Agencies
[Federal Register Volume 88, Number 129 (Friday, July 7, 2023)]
[Notices]
[Pages 43337-43347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14401]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates--Rate Order No. SWPA-80
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of rate order.
-----------------------------------------------------------------------
SUMMARY: The Administrator, Southwestern Power Administration
(Southwestern), has approved and placed into effect on an interim basis
Rate Order No. SWPA-80 (Rate Order), which provides the following
Integrated System Wholesale Rates for Hydro Peaking Power (P-13B) Rate
Schedule: Rate Schedule P-13B, Wholesale Rates for Hydro Peaking Power
(Rate Schedule P-13B).
DATES: Approval of Rate Schedule P-13B on an interim basis is effective
July 15, 2023.
FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice
President, Chief Operating Officer, Office of Corporate Operations,
(918) 595-6684 or [email protected].
SUPPLEMENTARY INFORMATION: Rate Order No. SWPA-80 is approved and
placed into effect on an interim basis for the period July 15, 2023,
through September 30, 2023, for the following rate schedule:
Rate Schedule P-13B, Wholesale Rates for Hydro Peaking Power, which
supersedes the existing Rate Schedule P-13A, Wholesale Rates for Hydro
Peaking Power.
Southwestern's Administrator determined that a change to the
Peaking Energy Schedule Submission Time was needed to provide
Southwestern with more flexibility and greater certainty when making
replacement power purchases, and better align Southwestern with
regional organized energy market considerations. Rate Schedule P-13B
replaces the existing Rate Schedule P-13A and will expire on September
30, 2023. Rate Schedule P-13B updates the Peaking Energy Schedule
Submission time from 2:30 p.m. Central Prevailing Time (CPT) to 8:30
a.m. CPT and allows the Southwestern's Administrator to change the
Peaking Energy Schedule Submission Time no more than once per year to a
time no earlier than 8:00 a.m. CPT and no later than 9:00 a.m. CPT.
Additionally, in response to comments received, Rate Schedule P-13B
includes a new Section 4.2.3 that, for a transition period of
approximately two months, provides for customers to reduce their
Peaking Energy schedules submitted for the next day after the 8:30 a.m.
Peaking Energy Schedule Submission Time, provided that such
adjustments: (1) do not increase the amount of Peaking Energy scheduled
for any one hour; (2) are limited to a 25 percent reduction in Peaking
Energy scheduled for any one hour; and (3) are coordinated with
Southwestern's Scheduling and Operations staff no later than 2:00 p.m.
on the day prior to schedule implementation. Additional responses to
comments received on the proposed Rate Schedule P-13B published in the
Federal Register on April 5, 2023 (Proposed Rate Schedule P-13B), are
contained in the Rate Order.
United States of America
Department of Energy
Administrator, Southwestern Power Administration
In the matter of: Southwestern Power Administration, Integrated System
Hydro Peaking Power Rate Schedule, Rate Order No. SWPA-80
Order Confirming, Approving and Placing Revised Power Rate Schedule in
Effect on an Interim Basis (June 30, 2023)
Pursuant to Sections 301(b) and 302(a) of the Department of Energy
[[Page 43338]]
Organization Act, Public Law 42 U.S.C. 7151(b) and 7152(a), the
functions of the Secretary of the Interior and the Federal Power
Commission under Section 5 of the Flood Control Act of 1944, 16 U.S.C.
825s, relating to the Southwestern Power Administration (Southwestern),
were transferred to, and vested in the Secretary of Energy. 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 Southwestern'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 the Federal Energy Regulatory
Commission (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-SWPA1-2023, effective April 10, 2023, the Under Secretary for
Infrastructure redelegated the authority to confirm, approve, and place
such rates into effect on an interim basis to the Southwestern
Administrator.
Pursuant to that delegated authority, the Southwestern
Administrator has issued this interim rate order.
Background
Originally established by Order 1865, Secretary of the Interior,
dated August 31, 1943 and effective September 1, 1943 (8 FR 12142
(Sept. 3, 1943)), Southwestern is authorized by Congress to market the
hydroelectric power and energy from Federal dams controlled by the U.S.
Army Corps of Engineers (Corps), pursuant to Section 302(a)(1) of the
Department of Energy Organization Act (42 U.S.C. 7152(a)(1)), Section 5
of the Flood Control Act of 1944 (16 U.S.C. 825s), and Public Law 95-
456 (16 U.S.C. 825s-3). Guidelines for preparation of power repayment
studies are included in Department of Energy (DOE) Order No. RA 6120.2
(Sept. 20, 1979), entitled Power Marketing Administration Financial
Reporting. Procedures for public participation in power and
transmission rate adjustments of the Power Marketing Administrations
are found at title 10, part 903, subpart A of the Code of Federal
Regulations (10 CFR part 903). Procedures for the confirmation and
approval of rates for the Federal Power Marketing Administrations are
found at title 18, part 300, subpart L of the Code of Federal
Regulations (18 CFR part 300).
Southwestern markets power from 24 multi-purpose reservoir projects
with hydroelectric power facilities constructed and operated by the
Corps. These projects are located in Arkansas, Missouri, Oklahoma, and
Texas. Southwestern's marketing area includes these states plus Kansas
and Louisiana. The costs associated with 22 of these 24 hydropower
projects are repaid with revenues received under the Integrated System
rates. These rates also cover the costs of Southwestern's transmission
facilities that consist of 1,381 miles of high-voltage transmission
lines, 27 substations, and 46 microwave and VHF radio sites.
Additionally, Southwestern markets power from two hydropower projects
in southeastern Texas, Sam Rayburn Dam and Robert D. Willis. These
projects are isolated hydraulically, electrically, and financially from
the Integrated System, and are repaid via separate rate schedules and
therefore are not addressed in this Order.
On September 30, 2013, in Rate Order No. SWPA-66, the Deputy
Secretary of Energy placed into effect Southwestern's Integrated System
rate schedules (P-13, NFTS-13, and EE-13) on an interim basis for the
period October 1, 2013 to September 30, 2017. The Federal Energy
Regulatory Commission (FERC) confirmed and approved Southwestern's
interim Integrated System rates on a final basis on January 9, 2014 for
a period ending September 30, 2017.
Southwestern re-designated Integrated System rate schedule ``NFTS-
13'' as ``NFTS-13A'' with no revenue adjustment. In Rate Order No.
SWPA-71, the Deputy Secretary of Energy placed into effect
Southwestern's rate schedule NFTS-13A on an interim basis beginning
January 1, 2017. FERC confirmed and approved NFTS-13A on a final basis
on March 9, 2017.
On September 13, 2017, in Rate Order No. SWPA-72, the Deputy
Secretary of Energy extended all of Southwestern's Integrated System
rate schedules (P-13, NTFS-13A, and EE-13) for two years, for the
period of October 1, 2017 through September 30, 2019.
Southwestern re-designated Integrated System rate schedule ``P-13''
as ``P-13A'' with no revenue adjustment. In Rate Order No. SWPA-73, the
Assistant Secretary for Electricity placed into effect Southwestern's
rate schedule P-13A on an interim basis beginning July 15, 2019. FERC
confirmed and approved P-13A on a final basis on August 29, 2019.
On September 22, 2019, in Rate Order No. SWPA-74, the Assistant
Secretary for Electricity extended all of Southwestern's Integrated
System rate schedules (P-13A, NFTS-13A, EE-13) for two years, for the
period of October 1, 2019 through September 30, 2021.
On August 30, 2021, in Rate Order No. SWPA-77, the Administrator,
Southwestern, extended all of Southwestern's Integrated System rate
schedules (P-13A, NFTS-13A, EE-13) for two years, for the period of
October 1, 2021 through September 30, 2023.
Southwestern must at times make replacement capacity and energy
purchases to fulfill its contractual obligations associated with the
delivery of Hydro Peaking Power as required through the majority of
Power Sales Contracts that utilize Southwestern's Integrated System
rate schedules. Historically, a significant portion of needed
replacement power purchases were made through pre-arranged Purchase
Power Agreements (PPAs), many of which were capacity and energy ``call
options'' that allowed Southwestern to schedule the energy as needed
after the historic Peaking Energy Schedule Submission Time of 2:00 p.m.
Central Prevailing Time (CPT). In 2019, Southwestern implemented a rate
schedule change to move the Peaking Energy Schedule Submission Time to
2:30 p.m. CPT. To facilitate the 30-minute shift in the Peaking Energy
Schedule Submission Time, Southwestern negotiated with its bilateral
trading partners at the time to shift the call option strike time later
by 30 minutes as well. Over the last several years, even prior to 2019,
the role of FERC-approved reliability transmission organizations (RTOs)
in Southwestern's marketing region has increased to the point where the
majority of Southwestern's traditional bi-lateral trading partners are
members of or participants in RTO energy markets. The regional
organized day-ahead energy markets close by 9:30 a.m. CPT, which means
that Southwestern's call option trading partners lose the opportunity
to bid their resources into the day-ahead markets if they allow
Southwestern to wait until the afternoon to determine whether to call
on the capacity and energy. Additionally, the planning reserve margins
for the RTOs surrounding Southwestern have either been increased or are
in the process of being increased which has led to entities keeping
their resources within their own portfolios to ensure their own
resource adequacy. These two complications have led to increased
pricing and decreased flexibility in the bilateral PPA offers available
to
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Southwestern as well as a decrease in the availability of offers for
firm, deliverable capacity and energy in recent months. As a strategy
for addressing this issue, Southwestern has recently become a Market
Participant of the Midcontinent Independent System Operator (MISO),
which enables Southwestern to purchase physical and financial energy
from the MISO Day-Ahead and Real-Time energy markets. Southwestern is
also exploring becoming a Market Participant in the Southwest Power
Pool (SPP). Both the MISO and SPP day-ahead energy markets close
bidding at 9:30 a.m. CPT every day. In order to best utilize regional
organized day-ahead energy markets as a cost-competitive and risk-
management option for replacement energy purchases, Southwestern must
have increased certainty about its Peaking Energy obligations before
9:30 a.m. the day before the Peaking Energy will be delivered. Further,
Southwestern expects that earlier day-ahead certainty of Peaking Energy
schedules will provide Southwestern with additional options when
seeking new PPAs, as Southwestern could accept a strike time prior to
the closing times of regional organized day-ahead energy markets and
mitigate the lost opportunity concerns of trading partners. Ultimately,
Southwestern's effective participation in regional organized day-ahead
energy markets as well as the ability to attract more cost-competitive
PPAs will best ensure Southwestern can procure sufficient energy to
meet its contractual obligations at the lowest costs while limiting the
purchase of unneeded energy. Reduced risk and greater surety in the
delivery of Federal Power and Energy, as well as any cost savings
realized by Southwestern, will be to the benefit of all Integrated
System customers for which Southwestern has the contractual obligation
to provide replacement power.
Therefore, Southwestern's Administrator determined that Section
4.2, Peaking Energy Schedule Submission Time, should be modified to
establish the Peaking Energy Schedule Submission Time as on or before
8:30 a.m. Central Prevailing Time (CPT) of the day preceding the day
for delivery of Peaking Energy. Additionally, Section 4.2.2, Procedure
for Adjusting the Peaking Energy Schedule Submission Time, which allows
the Southwestern Administrator to adjust the Peaking Energy Schedule
Submission Time no more than once annually should be updated to allow
for a submission time no earlier than 8:00 a.m. CPT and no later than
9:00 a.m. CPT. These updates are expected to provide Southwestern with
more flexibility and greater certainty when making replacement power
purchases, and better align Southwestern with regional organized energy
market considerations. After considering comments received,
Southwestern's Administrator determined that a new Section 4.2.3 should
be added to provide for an approximate two-month transition period
during which customers will be allowed to reduce their Peaking Energy
schedules submitted for the next day after the 8:30 a.m. Peaking Energy
Schedule Submission Time, provided that such adjustments: (1) do not
increase the amount of Peaking Energy scheduled for any one hour; (2)
are limited to a 25 percent reduction in Peaking Energy scheduled for
any one hour; and (3) are coordinated with Southwestern's Scheduling
and Operations staff no later than 2:00 p.m. on the day prior to
schedule implementation. The changes to Rate Schedule P-13A, which will
be delineated as Rate Schedule P-13B, is a change to a rate schedule in
accordance with 18 CFR part 300.
Public Notice and Comment
Notice of a proposed rate schedule change was published in the
Federal Register April 5, 2023 (88 FR 20163). The notice advised
parties of the Proposed Rate Schedule P-13B and an associated public
consultation and comment period to provide for an open and transparent
process. Comments were accepted through May 5, 2023. Southwestern
received five responses containing comments on the Proposed Rate
Schedule P-13B. In finalizing the Rate Schedule P-13B, Southwestern
reviewed and considered all comments received during the public
consultation and comment period. The following is a summary of comments
received and Southwestern's response to those comments.
Comment 1: Three commenters acknowledged the regional capacity
challenges that Southwestern and other entities are facing: Arkansas
Electric Cooperative Corporation (AECC) ``understands the capacity
situation that exists''; City Water and Light Plant of the City of
Jonesboro, Arkansas (Jonesboro) ``empathizes with the lack of capacity
that [Southwestern] and other utilities in our region are facing''; and
the Southwestern Power Resources Association (SPRA), which represents
the interests of consumer-owned electric systems that are customers of
Southwestern, ``recognize[s] the difficult position that [Southwestern]
and all utilities in our region are facing with the lack of capacity.''
Response 1: As stated above, regional capacity challenges are a
driving factor for Southwestern's decision. Rate Schedule P-13B allows
Southwestern to better align itself with the closing times of regional
organized day-ahead energy markets, and therefore be better positioned
to utilize those markets and/or enter into PPAs that provide
consideration of those markets to ensure Southwestern is able to meet
its mission of marketing Federal hydropower at the lowest possible
costs.
Comment 2: Four commenters noted that their Federal hydropower
allocation is a valuable portion of their energy portfolios: AECC
``appreciate[s] the great value that [Southwestern] has provided in the
past few years''; Associated Electric Cooperative, Inc. (AECI) ``views
its longstanding partnership with [Southwestern] as integral to AECI's
mission to provide the lowest cost and reliable wholesale power to its
membership''; Jonesboro's ``Federal Hydropower Allocation is a critical
resource in [its] wholesale power portfolio''; and SPRA stated that
``Federal hydropower is a valued piece of the portfolio for the members
of SPRA.''
Response 2: Southwestern works hard to maintain and improve the
value of Federal hydropower in its region while providing wholesale
power to its preference customers at the lowest possible costs.
Comment 3: Three commenters expressed appreciation for their
partnerships with Southwestern: AECC ``appreciates [Southwestern]
working with customers''; Jonesboro and Southwestern ``have a long
history or partnering to support the overall benefit of all
[Southwestern's] customers'' and ``are very thankful for this
partnership''; and SPRA has ``long enjoyed working with [Southwestern]
to address concerns that could threaten the value or reliability of
federal hydropower.''
Response 3: Southwestern also appreciates and works hard to foster
the collaborative relationship it has with its customers.
Comment 4: ARKMO, a group consisting of five municipally-owned
utilities, located in Northeast Arkansas and Southeast Missouri, all of
which are Southwestern customers, stated that ``as small municipal
utilities the ARKMO group members are impacted significantly through
their [Southwestern] rates. Because of this, the ARKMO group is in
support of moving the peaking schedule submission time to 8:30 a.m.''
[[Page 43340]]
Response 4: Southwestern appreciates ARKMO's acknowledgement of the
beneficial aspects of this rate schedule change on its Integrated
System customers for which Southwestern has the contractual obligation
to provide replacement power. As noted, the purpose of this change is
to facilitate Southwestern's effective participation in regional
organized day-ahead energy markets and increase Southwestern's ability
to attract more cost-competitive PPAs.
Comment 5: ARKMO stated that the proposed change will allow
Southwestern ``to better manage their resources. The ARKMO group is in
support of [Southwestern] making strategic decisions to help maintain
lower rates for their customers.''
Response 5: As noted above, this change allows Southwestern to
better align itself with the closing times of regional organized day-
ahead energy markets. Southwestern's effective participation in
regional organized day-ahead energy markets as well as the ability to
attract more cost-competitive PPAs will best ensure Southwestern can
procure sufficient energy to meet its contractual obligations at the
lowest costs while limiting the purchase of unneeded energy. Reduced
risk and greater surety in the delivery of Federal Power and Energy, as
well as any cost savings realized by Southwestern, will be to the
benefit of all Integrated System customers for which Southwestern has
the contractual obligation to provide replacement power, and will
ensure Southwestern meets its mission of marketing Federal hydropower
at the lowest possible costs.
Comment 6: Three commenters indicated a desire for Southwestern to
revisit the need for the Peaking Energy Schedule Submission Time change
in the future to look for a more mutually agreeable solution to
Southwestern's capacity and energy concerns: AECC hopes the conditions
which have caused the capacity situation that exists ``change soon to
allow for a return to the scheduling timeline that exists today'';
Jonesboro ``respectfully encourage[s] [Southwestern] to continue its
partnership with the customers and evaluate solutions that (1) provide
for the lowest cost power purchase adder and (2) provide for the
overall maximum benefit for [Southwestern] customers''; and SPRA is ''
looking forward to a robust conversation during SPRA's upcoming
September meeting to analyze the data that was gathered during this
time, and continuing to work with [Southwestern] to produce solutions
which ensure the most value for all federal hydropower customers.''
Response 6: Southwestern will evaluate the impact of the Peaking
Energy Schedule Submission Time after implementation and will continue
to informally and periodically discuss the change as well as other
possible solutions with its customers. The ability to optimize energy
purchases via regional organized day-ahead energy markets will help
alleviate its capacity and energy shortage issues. Southwestern will
continue to monitor its progress and engage its customers to ensure the
most effective use of the Federal hydropower system consistent with
sound business principles.
Comment 7: Two commenters, Jonesboro and SPRA, stated that
Southwestern should use a ``temporary solution that allows for the
total reduction of a peaking schedule made to [Southwestern] by 8:30
a.m. by no more than 25 percent of the total of each individual hour
submitted. Any proposed reductions must be coordinated with
[Southwestern] Operations and Merchant Staff and completed by no later
than 2:00 p.m. the day prior to energy flow.''
Response 7: As a result of informal discussion with customers and
in response to comments received, to mitigate some of the immediate
impact of this change Southwestern has included a new Section 4.2.3 in
Rate Schedule P-13B that, for a transition period of approximately two
months, allows customers to reduce their Peaking Energy schedules
submitted for the next day after the 8:30 a.m. Peaking Energy Schedule
Submission Time, provided that such adjustments: (1) do not increase
the amount of Peaking Energy scheduled for any one hour; (2) are
limited to a 25 percent reduction in Peaking Energy scheduled for any
one hour; and (3) are coordinated with Southwestern's Scheduling and
Operations staff no later than 2:00 p.m. on the day prior to schedule
implementation.
Comment 8: Two commenters noted that the Proposed Rate Schedule P-
13B will limit customers' ability to optimize their Federal hydropower
resource in day-ahead markets: AECC ``estimates a loss in energy value
of 15-20 percent'' and ``a trim on the capacity of 82%'' which ``would
have been a loss in value for 2022 of 23%'', and AECI stated that
``limiting [Southwestern] customers' flexibility to choose when to call
on peaking power in this way will drive unnecessary cost increases to
AECI's end-use members.''
Response 8: Southwestern has determined that purchased power from
regional organized energy markets is one of the more cost-effective and
viable replacement power options available. Having more certainty about
Southwestern's obligations to customers prior to the closing times of
regional organized day-ahead energy markets will ensure that when a
resource shortage occurs, Southwestern can procure sufficient energy to
meet its obligations at the lowest costs while limiting the purchase of
unneeded energy. Any cost savings realized by Southwestern will be to
the benefit of all Integrated System customers for which Southwestern
has the contractual obligation to provide replacement power.
Comment 9: AECC stated it ``would appreciate [Southwestern's]
further consideration of allowing for increased flexibility, such as
allowing a customer to agree to trim capacity, keeping energy the same,
in return for allowing for the customer to have the ability to offer
the energy into the market.''
Response 9: Although this proposal would lower Southwestern's
capacity obligation, there would still be concerns regarding
Southwestern's next-day energy obligation and Southwestern's limited
ability to optimize regional organized day-ahead energy market
purchases. Southwestern has determined that a Peaking Energy Schedule
Submission Time that is prior to the closing times of regional
organized day-ahead energy markets is in the best interest of
Southwestern customers overall. Southwestern intends to move forward
with Rate Schedule P-13B, which allows the Administrator to change the
Peaking Energy Schedule Submission Time no more than once per year to a
time no earlier than 8:00 a.m. CPT and no later than 9:00 a.m. CPT.
Additionally, Rate Schedule P-13B includes a new Section 4.2.3 that,
for a transition period of approximately two months, allows customers
limited ability to reduce their Peaking Energy schedules submitted for
the next day after the 8:30 a.m. Peaking Energy Schedule Submission
Time.
Comment 10: AECC provided a ``proposed revision to [Southwestern]
Rate Schedule P-13A'' which updates Section 4.2.2 to state the
``Peaking Energy Schedule Submission Time of 2:00 p.m. CPT, as noted in
Section 4.2 of this Rate Schedule, may be adjusted by the
Administrator, Southwestern, to a time no earlier than 8:30 a.m. CPT
and no later than 2:00 p.m. CPT.''
Response 10: Southwestern has determined that a Peaking Energy
Schedule Submission Time that is prior to the closing times of regional
organized day-ahead energy markets is in the best interest of
Southwestern and its Integrated System customers for
[[Page 43341]]
which Southwestern has the contractual obligation to provide
replacement power. Southwestern intends to move forward with Rate
Schedule P-13B, which allows the Administrator to change the Peaking
Energy Schedule Submission Time no more than once per year to a time no
earlier than 8:00 a.m. CPT and no later than 9:00 a.m. CPT.
Additionally, in response to comments received, Southwestern included a
new Section 4.2.3 in Rate Schedule P-13B that, for a transition period
of approximately two months, allows customers limited ability reduce
their Peaking Energy schedules submitted for the next day after the
8:30 a.m. Peaking Energy Schedule Submission Time.
Comment 11: AECI stated that the ``unilateral change to
[Southwestern's] Peaking Power Rate Schedule does not constitute a
minor rate adjustment as it fails to adequately consider the
significant negative economic impact that removal of the 2:30 p.m.
peaking energy submission time will have on integrated system
customers.''
Response 11: ``Minor rate adjustment'' is a defined term under 10
CFR part 903.2. Under 10 CFR part 903.2, determinations as to whether a
rate adjustment qualifies as ``minor'' are based upon the revenue
change to Southwestern's Integrated System as a whole and not the
subjective impacts on an individual customer or set of customers. This
comment afforded Southwestern an opportunity to reexamine its initial
classification of the proposed change as a ``minor rate adjustment.''
The terms ``rate,'' ``rate adjustment,'' and ``minor rate adjustment''
are all defined in 10 CFR 903.2. A pre-requisite to any change being
qualified as a ``minor rate adjustment'' is that it involves a ``rate''
and that it constitutes a ``rate adjustment.'' Upon further review,
Southwestern has determined that this action does not meet the
definition of a ``rate adjustment,'' and thus should not be classified
as a ``minor rate adjustment.'' Under 10 CFR 903.2 a ``rate
adjustment'' is defined as ``a change in an existing rate or rates, or
the establishment of a rate or rates for a new service.'' The
definition goes on to expressly state a rate adjustment ``. . . does
not include a change in rate schedule provisions or in contract terms .
. .'' Instead, the action should be classified simply as a change in
the terms or provisions of the ``Rate Schedule'' that does not change
the existing ``rates'' (the monetary charges or formula for computing
such charges) to Southwestern's customers as provided for in Rate
Schedule P-13A.
Comment 12: AECI stated Southwestern's ``assertion that switching
to an earlier peaking power submission deadline will increase its
ability to provide shortfall capacity pre-supposes that power will be
available during those needed hours. Thus, [Southwestern's] plan would
on-balance create at least as much uncertainty as it attempts to
resolve and would expose [Southwestern] customers to greater price risk
in the organized markets.''
Response 12: Southwestern has been and is exposed to price risk
through past and present PPAs that have a variable energy price based
on a gas index or energy market nodal pricing. Additionally, such PPAs
come with a capacity premium. The ability to optimize Southwestern's
participation in regional organized day-ahead energy markets through an
earlier Peaking Energy Schedule Submission Time while maintaining
optionality with PPAs, as needed, will allow Southwestern to better
manage risk than if Southwestern were to rely solely on the recent PPA
offers it has received.
Comment 13: AECI stated Southwestern ``provides no data showing
there are significant and recurring capacity shortfalls.''
Response 13: Southwestern has experienced recurring capacity
shortfalls the last several years due to both scheduled and unscheduled
maintenance outages. Long-term unit outages (defined as an outage
anticipated to last longer than three months) are reported weekly to
customers, including AECI, via a Monday Morning Report, and short-term
outages were reported on that same report until October 2021.
Additionally, Southwestern has provided outage information via regular
reports to its customer organization, the Southwestern Power Resources
Association (SPRA). Southwestern will make information supporting the
assertion that it has experienced significant and recurring capacity
shortfalls available on request.
Comment 14: AECI stated that ``no supporting data and hence no
substantial evidence underlies either assertion'' that `` `the number
of PPAs available to Southwestern has decreased and the pricing of
available PPAs has increased' ''.
Response 14: In August 2022, Southwestern issued a request for
proposals (RFP) for firm schedulable/dispatchable capacity and
associated energy. No proposals were received. Southwestern issued an
RFP for firm energy deliverable to Southwestern's transmission system
in January and February 2023. Three proposals were received but only
one of them met Southwestern's requested requirements but with energy
pricing significantly higher than historical rates. In April 2023,
Southwestern received additional proposals, none of which were for firm
deliverable capacity. All proposals contained elements that were
significantly higher in cost than historical responses. Even if more
PPAs were available to Southwestern, participation in regional
organized energy markets offers an additional tool for Southwestern to
manage risk.
Comment 15: AECI stated that Southwestern's ``scheduling rationale
appears to ironically rely on creating `better options when seeking new
PPAs' when the absence of previous PPAs is driving the change.''
Response 15: The current need for Rate Schedule P-13B is to allow
Southwestern to better optimize its participation in regional organized
day-ahead energy markets while competitively priced, firm, deliverable
capacity and energy options are limited. Southwestern plans to utilize
both regional organized energy markets as well as PPAs, when
competitive, to manage risk and meet its contractual obligations.
Comment 16: AECI stated that ``amending the day-ahead peaking
scheduling requirement on all days of the year for the entire capacity
of the integrated system, to guard against a relatively rare
convergence of high customer needs, insufficient hydropower resources,
and insufficient market liquidity is unnecessary and inconsistent with
[Southwestern's] mission under Section 5 of the Flood Control Act of
1944 to encourage the most widespread use at the lowest possible rates
of Federal hydropower consistent with sound business principles.''
Response 16: As Southwestern moves towards increased participation
in regional organized energy markets, it is anticipated that
Southwestern will benefit from the earlier Peaking Energy Schedule
Submission Time through having increased knowledge regarding Peaking
Energy obligations prior to market close on a regular basis. This will
help Southwestern prevent against either making purchases in excess of
its energy needs, thereby unnecessarily increasing costs, or making
purchases less than its energy needs, at which point the energy market
liquidity is significantly reduced when procuring the remainder of
needed energy. Furthermore, no matter the rarity of the situation at
hand, Southwestern contends the certainty of energy delivery in
accordance with our
[[Page 43342]]
contractual obligations is paramount to its mission in accordance with
Section 5 of the Flood Control Act of 1944.
Comment 17: AECI provided a ``proposed revision to [Southwestern]
Rate Schedule P-13A'' Section 4.2.2 which would: (1) require that
``Concurrent with the Peaking Energy Schedule Submission Time,
customers designated by Administrator, Southwestern, are required to
submit to Southwestern a preliminary Peaking Energy Schedule for the
second following day'' in addition to the day-ahead peaking energy
schedule by the then in-effect Peaking Energy Schedule Submission Time;
(2) allow for the ``Peaking Energy Schedule Submission Time of 2:00
p.m. CPT'' to be ``adjusted by the Administrator, Southwestern, to a
time no earlier than 8:30 a.m. CPT and no later than 2:00 p.m. CPT'';
(3) require that the Administrator ``make a determination daily on the
need to adjust the Peaking Energy Schedule Submission Time, limited to
the extent conditions required, based on preliminary Peaking Energy
Schedules, regional energy market conditions, and/or operational
considerations'' and (4) require that the Administrator ``notify
customers of the determination to adjust the Peaking Energy Schedule
Submission Time via electronic communication no later than 7:30 a.m. of
the day the Peaking Energy Schedule Submissions are due.''
Response 17: The suggested changes have been considered and
Southwestern has chosen not to implement any of the changes for the
following reasons: (1) the preliminary two-day-ahead schedule is
allowed to change without any restrictions prior to being submitted as
a final day-ahead schedule and therefore cannot be reliably used by
Southwestern in making operational decisions; (2) the analysis of a
preliminary schedule and daily determination of the Peaking Energy
Schedule Submission Time creates a significant additional workload and
administrative burden for Southwestern's staff with no corresponding
benefit for customers overall; (3) submission of a two-day-ahead
preliminary schedule is likely to create a burden for a majority of
Southwestern's customers, which currently submit Peaking Energy
schedules prior to 8:30 a.m. CPT rather than waiting until closer to
the 2:30 p.m. CPT Peaking Energy Schedule Submission Time as permitted
by the current Rate Schedule P-13A (although the comment allows for
Southwestern's Administrator to select specific customers which are
required to submit a two-day-ahead schedule, Southwestern applies rate
schedule provisions equally to all customers); (4) frequent changes to
the Peaking Energy Schedule Submission Time could easily cause
confusion among Southwestern's customers; (5) Southwestern desires to
develop rate schedules which are as consistent as possible for its
customers, and frequent changes to the Peaking Energy Schedule
Submission Time would increase volatility of daily operations; and (6)
as noted previously, Southwestern has determined that a Peaking Energy
Schedule Submission Time that is coordinated with the closing times of
regional organized day-ahead energy markets is in the best interest of
Southwestern and its Integrated System customers for which Southwestern
has the contractual obligation to provide replacement power.
Southwestern intends to move forward with Rate Schedule P-13B, which
allows the Administrator to change the Peaking Energy Schedule
Submission Time no more than once per year to a time no earlier than
8:00 a.m. CPT and no later than 9:00 a.m. CPT.
Availability of Information
Information regarding Rate Schedule P-13B, including public
comments received, is available for public review in the offices of
Southwestern Power Administration, One West Third Street, Suite 1500,
Tulsa, Oklahoma 74103. Southwestern in-effect rate schedules are
available on the Southwestern website at www.energy.gov/swpa.
Administration's Certification
Rate Schedule P-13B will repay all costs of the Integrated System
including amortization of the power investment consistent with the
provisions of Department of Energy Order No. RA 6120.2. In accordance
with Delegation Order No. 00-037.00B, effective November 19, 2016, and
Section 5 of the Flood Control Act of 1944, the Administrator has
determined that Rate Schedule P-13B is consistent with applicable law
and the lowest possible rates consistent with sound business
principles.
Environment
Southwestern previously determined that the rate change actions,
placed into effect on October 1, 2013, fit within the following class
of categorically excluded actions as listed in Appendix B to Subpart D
of 10 CFR part 1021, DOE's Implementing Procedures and Guidelines of
the National Environmental Policy Act of 1969, as amended (42 U.S.C.
4321-4347): B4.4 (Electric power marketing rate changes). Categorically
excluded actions do not require preparation of either an environmental
impact statement or an environmental assessment. On June 13, 2023,
Southwestern determined that categorical exclusion B4.4 applies to the
current action as well.
Order
In view of the foregoing, and pursuant to delegated authority from
the Secretary of Energy, I hereby confirm, approve, and place into
effect on an interim basis, effective July 15, 2023, the Southwestern
Integrated System Rate Schedule P-13B which shall remain in effect on
an interim basis through September 30, 2023, or the FERC confirms and
approves the rates on a final basis.
Signing Authority
This document of the Department of Energy was signed on June 30,
2023, by Mike Wech, Administrator for Southwestern 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 DOE. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on July 3, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
United States Department of Energy
Southwestern Power Administration
Rate Schedule P-13B \1\ **
---------------------------------------------------------------------------
\1\ Supersedes Rate Schedule P-13A.
** Extended through September 30, 2023 by approval of Rate Order
No. SWPA-77 by the Administrator, Southwestern Power Administration.
---------------------------------------------------------------------------
Wholesale Rates for Hydro Peaking Power
Effective
During the period October 1, 2013, through September 30, 2023,**
in accordance with Federal Energy Regulatory Commission (FERC) order
issued in Docket No. EF14-1-000 (Jan. 9, 2014), extension approved
by the Deputy Secretary in Docket No. EF14-1-002 (Sept. 13, 2017),
modification approved by FERC in Docket No. EF14-1-003 (Aug. 29,
2019), extension approved by Assistant Secretary for Electricity in
Rate Order No. 74 (Sept. 22, 2019), and extension approved by the
Administrator in Rate Order No. 77 (August 30, 2021).
[[Page 43343]]
Available
In the marketing area of Southwestern Power Administration
(Southwestern), described generally as the States of Arkansas,
Kansas, Louisiana, Missouri, Oklahoma, and Texas.
Applicable
To wholesale Customers which have contractual rights from
Southwestern to purchase Hydro Peaking Power and associated energy
(Peaking Energy and Supplemental Peaking Energy).
Character and Conditions of Service
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage(s), at the point(s) of delivery, and
in such quantities as are specified by contract.
1. Definitions of Terms
1.1. Ancillary Services
The services necessary to support the transmission of capacity
and energy from resources to loads while maintaining reliable
operation of the System of Southwestern in accordance with good
utility practice, which include the following:
1.1.1. Scheduling, System Control, and Dispatch Service
Is provided by Southwestern as Balancing Authority Area operator
and is in regard to interchange and load-match scheduling and
related system control and dispatch functions.
1.1.2. Reactive Supply and Voltage Control From Generation Sources
Service
Is provided at transmission facilities in the System of
Southwestern to produce or absorb reactive power and to maintain
transmission voltages within specific limits.
1.1.3. Regulation and Frequency Response Service
Is the continuous balancing of generation and interchange
resources accomplished by raising or lowering the output of on-line
generation as necessary to follow the moment-by-moment changes in
load and to maintain frequency within a Balancing Authority Area.
1.1.4. Spinning Operating Reserve Service
Maintains generating units on-line, but loaded at less than
maximum output, which may be used to service load immediately when
disturbance conditions are experienced due to a sudden loss of
generation or load.
1.1.5. Supplemental Operating Reserve Service
Provides an additional amount of operating reserve sufficient to
reduce Area Control Error to zero within 10 minutes following loss
of generating capacity which would result from the most severe
single contingency.
1.1.6. Energy Imbalance Service
Corrects for differences over a period of time between schedules
and actual hourly deliveries of energy to a load. Energy delivered
or received within the authorized bandwidth for this service is
accounted for as an inadvertent flow and is returned to the
providing party by the receiving party in accordance with standard
utility practice or a contractual arrangement between the parties.
1.2. Customer
The entity which is utilizing and/or purchasing Federal Power
and Federal Energy and services from Southwestern pursuant to this
Rate Schedule.
1.3. Demand Period
The period of time used to determine maximum integrated rates of
delivery for the purpose of power accounting which is the 60-minute
period that begins with the change of hour.
1.4. Federal Power and Energy
The power and energy provided from the System of Southwestern.
1.5. Hydro Peaking Power
The Federal Power that Southwestern sells and makes available to
the Customers through their respective Power Sales Contracts in
accordance with this Rate Schedule.
1.6. Peaking Billing Demand
The quantity equal to the Peaking Contract Demand for any month
unless otherwise provided by the Customer's Power Sales Contract.
1.7. Peaking Contract Demand
The maximum rate in kilowatts at which Southwestern is obligated
to deliver Federal Energy associated with Hydro Peaking Power as set
forth in the Customer's Power Sales Contract.
1.8. Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer in accordance
with the terms and conditions of the Customer's Power Sales
Contract.
1.9. Peaking Energy Schedule Submission Time
The time by which Southwestern requires the Customer to submit
Peaking Energy schedules to Southwestern as provided for in this
Rate Schedule and in accordance with the terms and conditions of the
Customer's Power Sales Contract.
1.10. Power Sales Contract
The Customer's contract with Southwestern for the sale of
Federal Power and Federal Energy.
1.11. Supplemental Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer if determined
by Southwestern to be available and that is in addition to the
quantity of Peaking Energy purchased by the Customer in accordance
with the terms and conditions of the Customer's Power Sales
Contract.
1.12. System of Southwestern
The transmission and related facilities owned by Southwestern,
and/or the generation, transmission, and related facilities owned by
others, the capacity of which, by contract, is available to and
utilized by Southwestern to satisfy its contractual obligations to
the Customer.
1.13. Uncontrollable Force
Any force which is not within the control of the party affected,
including, but not limited to failure of water supply, failure of
facilities, flood, earthquake, storm, lightning, fire, epidemic,
riot, civil disturbance, labor disturbance, sabotage, war, act of
war, terrorist acts, or restraint by court of general jurisdiction,
which by exercise of due diligence and foresight such party could
not reasonably have been expected to avoid.
2. Wholesale Rates, Terms, and Conditions for Hydro Peaking Power,
Peaking Energy, Supplemental Peaking Energy, and Associated
Services
Unless otherwise specified, this Section 2 is applicable to all
sales under the Customer's Power Sales Contract.
2.1. Hydro Peaking Power Rates, Terms, and Conditions
2.1.1. Monthly Capacity Charge for Hydro Peaking Power
$4.50 per kilowatt of Peaking Billing Demand.
2.1.2. Services Associated With Capacity Charge for Hydro Peaking Power
The capacity charge for Hydro Peaking Power includes such
transmission services as are necessary to integrate Southwestern's
resources in order to reliably deliver Hydro Peaking Power and
associated energy to the Customer. This capacity charge also
includes two Ancillary Services charges: Scheduling, System Control,
and Dispatch Service; and Reactive Supply and Voltage Control from
Generation Sources Service.
2.1.3. Secondary Transmission Service Under Capacity Associated With
Hydro Peaking Power
Customers may utilize the transmission capacity associated with
Peaking Contract Demand for the transmission of non-Federal energy,
on a non-firm, as-available basis, at no additional charge for such
transmission service or associated Ancillary Services, under the
following terms and conditions:
2.1.3.1. The sum of the capacity, for any hour, which is used
for Peaking Energy, Supplemental Peaking Energy, and Secondary
Transmission Service, may not exceed the Peaking Contract Demand;
2.1.3.2. The non-Federal energy transmitted under such secondary
service is delivered to the Customer's point of delivery for Hydro
Peaking Power;
2.1.3.3. The Customer commits to provide Real Power Losses
associated with such deliveries of non-Federal energy; and
2.1.3.4. Sufficient transfer capability exists between the point
of receipt into the System of Southwestern of such non-Federal
energy and the Customer's point of delivery for Hydro Peaking Power
for the time period that such secondary transmission service is
requested.
2.1.4. Adjustment for Reduction in Service
If, during any month, the Peaking Contract Demand associated
with a Power Sales Contract in which Southwestern has the obligation
to provide 1,200 kilowatthours of Peaking Energy per kilowatt of
Peaking Contract Demand is reduced by
[[Page 43344]]
Southwestern for a period or periods of not less than two
consecutive hours by reason of an outage caused by either an
Uncontrollable Force or by the installation, maintenance,
replacement or malfunction of generation, transmission and/or
related facilities on the System of Southwestern, or insufficient
pool levels, the Customer's capacity charges for such month will be
reduced for each such reduction in service by an amount computed
under the formula:
R = (C x K x H) / S
with the factors defined as follows:
R = The dollar amount of reduction in the monthly total capacity
charges for a particular reduction of not less than two consecutive
hours during any month, except that the total amount of any such
reduction shall not exceed the product of the Customer's capacity
charges associated with Hydro Peaking Power times the Peaking
Billing Demand.
C = The Customer's capacity charges associated with Hydro Peaking
Power for the Peaking Billing Demand for such month.
K = The reduction in kilowatts in Peaking Billing Demand for a
particular event.
H = The number of hours duration of such particular reduction.
S = The number of hours that Peaking Energy is scheduled during such
month, but not less than 60 hours times the Peaking Contract Demand.
Such reduction in charges shall fulfill Southwestern's
obligation to deliver Hydro Peaking Power and Peaking Energy.
2.2. Peaking Energy and Supplemental Peaking Energy Rates, Terms, and
Conditions
2.2.1. Peaking Energy Charge
$0.0094 per kilowatthour of Peaking Energy delivered plus the
Purchased Power Adder as defined in Section 2.2.3 of this Rate
Schedule.
2.2.2. Supplemental Energy Charge
$0.0094 per kilowatthour of Supplemental Peaking Energy
delivered.
2.2.3. Purchased Power Adder
A purchased power adder of $0.0059 per kilowatthour of Peaking
Energy delivered, as adjusted by the Administrator, Southwestern, in
accordance with the procedure within this Rate Schedule.
2.2.3.1. Applicability of Purchased Power Adder
The Purchased Power Adder shall apply to sales of Peaking
Energy. The Purchased Power Adder shall not apply to sales of
Supplemental Peaking Energy or sales to any Customer which, by
contract, has assumed the obligation to supply energy to fulfill the
minimum of 1,200 kilowatthours of Peaking Energy per kilowatt of
Peaking Contract Demand during a contract year (hereinafter
``Contract Support Arrangements'').
2.2.3.2. Procedure for Determining Net Purchased Power Adder Adjustment
Not more than twice annually, the Purchased Power Adder of
$0.0059 (5.9 mills) per kilowatthour of Peaking Energy, as noted in
this Rate Schedule, may be adjusted by the Administrator,
Southwestern, by an amount up to a total of $0.0059 (5.9
mills) per kilowatthour per year, as calculated by the following
formula:
ADJ = (PURCH-EST + DIF) / SALES
with the factors defined as follows:
ADJ = The dollar per kilowatthour amount of the total adjustment,
plus or minus, to be applied to the net Purchased Power Adder,
rounded to the nearest $0.0001 per kilowatthour, provided that the
total ADJ to be applied in any year shall not vary from the then-
effective ADJ by more than $0.0059 per kilowatthour;
PURCH = The actual total dollar cost of Southwestern's System Direct
Purchases as accounted for in the financial records of the
Southwestern Federal Power System for the period;
EST = The estimated total dollar cost ($13,273,800 per year) of
Southwestern's System Direct Purchases used as the basis for the
Purchased Power Adder of $0.0059 per kilowatthour of Peaking Energy;
DIF = The accumulated remainder of the difference in the actual and
estimated total dollar cost of Southwestern's System Direct
Purchases since the effective date of the currently approved
Purchased Power Adder set forth in this Rate Schedule, which
remainder is not projected for recovery through the ADJ in any
previous periods;
SALES = The annual Total Peaking Energy sales projected to be
delivered (2,241,300,000 KWh per year) from the System of
Southwestern, which total was used as the basis for the $0.0059 per
kilowatthour Purchased Power Adder.
2.3. Transformation Service Rates, Terms, and Conditions
2.3.1. Monthly Capacity Charge for Transformation Service
$0.46 per kilowatt will be assessed for capacity used to deliver
energy at any point of delivery at which Southwestern provides
transformation service for deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
2.3.2. Applicability of Capacity Charge for Transformation Service
Unless otherwise specified by contract, for any particular
month, a charge for transformation service will be assessed on the
greater of (1) that month's highest metered demand, or (2) the
highest metered demand recorded during the previous 11 months, at
any point of delivery. For the purpose of this Rate Schedule, the
highest metered demand will be based on all deliveries, of both
Federal and non-Federal energy, from the System of Southwestern, at
such point during such month.
2.4. Ancillary Services Rates, Terms, and Conditions
2.4.1. Capacity Charges for Ancillary Services
2.4.1.1. Regulation and Frequency Response Service
Monthly rate of $0.07 per kilowatt of Peaking Billing Demand
plus the Regulation Purchased Adder as defined in Section 2.4.5 of
this Rate Schedule.
2.4.1.2. Spinning Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.4.1.3. Supplemental Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.4.1.4. Energy Imbalance Service
$0.0 per kilowatt for all reservation periods.
2.4.2. Availability of Ancillary Services
Regulation and Frequency Response Service and Energy Imbalance
Service are available only for deliveries of power and energy to
load within Southwestern's Balancing Authority Area. Spinning
Operating Reserve Service and Supplemental Operating Reserve Service
are available only for deliveries of non-Federal power and energy
generated by resources located within Southwestern's Balancing
Authority Area and for deliveries of all Hydro Peaking Power and
associated energy from and within Southwestern's Balancing Authority
Area. Where available, such Ancillary Services must be taken from
Southwestern; unless, arrangements are made in accordance with
Section 2.4.4 of this Rate Schedule.
2.4.3. Applicability of Charges for Ancillary Services
For any month, the charges for Ancillary Services for deliveries
of Hydro Peaking Power shall be based on the Peaking Billing Demand.
The daily charge for Spinning Operating Reserve Service and
Supplemental Operating Reserve Service for non-Federal generation
inside Southwestern's Balancing Authority Area shall be applied to
the greater of Southwestern's previous day's estimate of the peak,
or the actual peak, in kilowatts, of the internal non-Federal
generation.
2.4.4. Provision of Ancillary Services by Others
Customers for which Ancillary Services are made available as
specified above, must inform Southwestern by written notice of the
Ancillary Services which they do not intend to take and purchase
from Southwestern, and of their election to provide all or part of
such Ancillary Services from their own resources or from a third
party.
Subject to Southwestern's approval of the ability of such
resources or third parties to meet Southwestern's technical and
operational requirements for provision of such Ancillary Services,
the Customer may change the Ancillary Services which it takes from
Southwestern and/or from other sources at the beginning of any month
upon the greater of 60 days notice or upon completion of any
necessary equipment modifications necessary to accommodate such
change; Provided, That, if the Customer chooses not
[[Page 43345]]
to take Regulation and Frequency Response Service, which includes
the associated Regulation Purchased Adder, the Customer must pursue
these services from a different host Balancing Authority; thereby
moving all metered loads and resources from Southwestern's Balancing
Authority Area to the Balancing Authority Area of the new host
Balancing Authority. Until such time as that meter reconfiguration
is accomplished, the Customer will be charged for the Regulation and
Frequency Response Service and applicable Adder then in effect. The
Customer must notify Southwestern by July 1 of this choice, to be
effective the subsequent calendar year.
2.4.5. Regulation Purchased Adder
Southwestern has determined the amount of energy used from
storage to provide Regulation and Frequency Response Service in
order to meet Southwestern's Balancing Authority Area requirements.
The replacement value of such energy used shall be recovered through
the Regulation Purchased Adder. The Regulation Purchased Adder
during the time period of January 1 through December 31 of the
current calendar year is based on the average annual use of energy
from storage \1\ for Regulation and Frequency Response Service and
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies.
---------------------------------------------------------------------------
\1\ The average annual use of energy from storage for Regulation
and Frequency Response Service is based on Southwestern studies.
---------------------------------------------------------------------------
The Regulation Purchased Adder will be phased in over a period
of four (4) years as follows:
------------------------------------------------------------------------
Regulation purchased adder for the
Year incremental replacement value of
energy used from storage
------------------------------------------------------------------------
2014.............................. \1/4\ of the average annual use of
energy from storage x 2014
Purchased Power price.
2015.............................. \1/2\ of the average annual use of
energy from storage x 2015
Purchased Power price.
2016.............................. \3/4\ of the average annual use of
energy from storage x 2016
Purchased Power price.
2017 and thereafter............... The total average annual use of
energy from storage x the
applicable Purchased Power price.
------------------------------------------------------------------------
2.4.5.1. Applicability of Regulation Purchased Adder
The replacement value of the estimated annual use of energy from
storage for Regulation and Frequency Response Service shall be
recovered by Customers located within Southwestern's Balancing
Authority Area on a non-coincident peak ratio share basis, divided
into twelve equal monthly payments, in accordance with the formula
in Section 2.4.5.2.
If the Regulation Purchased Adder is determined and applied
under Southwestern's Rate Schedule NFTS-13, then it shall not be
applied here.
2.4.5.2. Procedure for Determining Regulation Purchased Adder
Unless otherwise specified by contract, the Regulation Purchased
Adder for an individual Customer shall be based on the following
formula rate, calculated to include the replacement value of the
estimated annual use of energy from storage by Southwestern for
Regulation and Frequency Response Service.
RPA = The Regulation Purchased Adder for an individual Customer per
month, which is as follows:
[(LCustomer / LTotal) x RPTotal ] /
12
with the factors defined as follows:
LCustomer = The sum in MW of the following three factors:
(1) The Customer's highest metered load plus generation used to
serve the Customer's load that is accounted for through a reduction
in the Customer's metered load (referred to as `generation behind
the meter') during the previous calendar year, and
(2) The Customer's highest rate of Scheduled Exports \2\ during
the previous calendar year, and
---------------------------------------------------------------------------
\2\ Scheduled Exports and Scheduled Imports are transactions,
such as sales and purchases respectively, which are in addition to a
Customer's metered load that contribute to Southwestern's Balancing
Authority Area need for regulation.
---------------------------------------------------------------------------
(3) The Customer's highest rate of Scheduled Imports \2\ during
the previous calendar year.
LTotal = The sum of all LCustomer factors for
all Customers that were inside Southwestern's Balancing Authority
Area at the beginning of the previous calendar year in MW.
RPTotal = The ``net'' cost in dollars and cents based on
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies
multiplied by the average annual use of energy from storage, as
provided for in the table in Section 2.4.5, to support
Southwestern's ability to regulate within its Balancing Authority
Area. The ``net'' cost in dollars and cents shall be adjusted by
subtracting the product of the quantity of such average annual use
of energy from storage in MWh and Southwestern's highest rate in
dollars per MWh for Supplemental Peaking Energy during the previous
calendar year.
For Customers that have aggregated their load, resources, and
scheduling into a single node by contract within Southwestern's
Balancing Authority Area, the individual Customer's respective
Regulation Purchased Adder shall be that Customer's ratio share of
the Regulation Purchased Adder established for the node. Such ratio
share shall be determined for the Customer on a non-coincident basis
and shall be calculated for the Customer from their highest metered
load plus generation behind the meter.
2.4.6. Energy Imbalance Service Limitations
Energy Imbalance Service primarily applies to deliveries of
power and energy which are required to satisfy a Customer's load. As
Hydro Peaking Power and associated energy are limited by contract,
the Energy Imbalance Service bandwidth specified for Non-Federal
Transmission Service does not apply to deliveries of Hydro Peaking
Power, and therefore Energy Imbalance Service is not charged on such
deliveries. Customers who consume a capacity of Hydro Peaking Power
greater than their Peaking Contract Demand may be subject to a
Capacity Overrun Penalty.
3. Hydro Peaking Power Penalties, Terms, and Conditions
3.1. Capacity Overrun Penalty
3.1.1. Penalty Charge for Capacity Overrun
For each hour during which Hydro Peaking Power was provided at a
rate greater than that to which the Customer is entitled, the
Customer will be charged a Capacity Overrun Penalty at the following
rates:
------------------------------------------------------------------------
Rate per
Months associated with charge kilowatt
------------------------------------------------------------------------
March, April, May, October, November, December.......... $0.15
January, February, June, July, August, September........ 0.30
------------------------------------------------------------------------
3.1.2. Applicability of Capacity Overrun Penalty
Customers which have loads within Southwestern's Balancing
Authority Area are obligated by contract to provide resources, over
and above the Hydro Peaking Power and associated energy purchased
from Southwestern, sufficient to meet their loads. A Capacity
Overrun Penalty shall be applied only when the formulas provided in
Customers' respective Power Sales Contracts indicate an overrun on
Hydro Peaking Power, and investigation determines that all
resources, both firm and non-firm, which were available at the time
of the apparent overrun were insufficient to meet the Customer's
load.
3.2. Energy Overrun Penalty
3.2.1. Penalty Charge for Energy Overrun
$0.1034 per kilowatthour for each kilowatthour of overrun.
3.2.2. Applicability of Energy Overrun Penalty
By contract, the Customer is subject to limitations on the
maximum amounts of Peaking Energy which may be scheduled under the
Customer's Power Sales Contract. When the Customer schedules an
amount in
[[Page 43346]]
excess of such maximum amounts, such Customer is subject to the
Energy Overrun Penalty.
3.3. Power Factor Penalty
3.3.1. Requirements Related to Power Factor
Any Customer served from facilities owned by or available by
contract to Southwestern will be required to maintain a power factor
of not less than 95 percent and will be subject to the following
provisions.
3.3.2. Determination of Power Factor
The power factor will be determined for all Demand Periods and
shall be calculated under the formula:
[GRAPHIC] [TIFF OMITTED] TN07JY23.004
with the factors defined as follows:
PF = The power factor for any Demand Period of the month.
kWh = The total quantity of energy which is delivered during such
Demand Period to the point of delivery or interconnection in
accordance with Section 3.3.4.
rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs)
delivered during such Demand Period to the point of delivery or
interconnection in accordance with Section 3.3.4. {tc\l ``2.2
Reservation Priority For Existing Firm Service Customers''{time}
3.3.3. Penalty Charge for Power Factor
The Customer shall be assessed a penalty for all Demand Periods
of a month where the power factor is less than 95 percent lagging.
For any Demand Period during a particular month such penalty shall
be in accordance with the following formula:
C = D x (0.95-LPF) x $0.10
with the factors defined as follows:
C = The charge in dollars to be assessed for any particular Demand
Period of such month that the determination of power factor ``PF''
is calculated to be less than 95 percent lagging.
D = The Customer's demand in kilowatts at the point of delivery for
such Demand Period in which a low power factor was calculated.
LPF = The lagging power factor, if any, determined by the formula
``PF'' for such Demand Period.
If C is negative, then C = zero (0).
3.3.4. Applicability of Power Factor Penalty
The Power Factor Penalty is applicable to radial
interconnections with the System of Southwestern. The total Power
Factor Penalty for any month shall be the sum of all charges ``C''
for all Demand Periods of such month. No penalty is assessed for
leading power factor. Southwestern, in its sole judgment and at its
sole option, may determine whether power factor calculations should
be applied to (i) a single physical point of delivery, (ii) a
combination of physical points of delivery where a Customer has a
single, electrically integrated load, (iii) or interconnections. The
general criteria for such decision shall be that, given the
configuration of the Customer's and Southwestern's systems,
Southwestern will determine, in its sole judgment and at its sole
option, whether the power factor calculation more accurately
assesses the detrimental impact on Southwestern's system when the
above formula is calculated for a single physical point of delivery,
a combination of physical points of delivery, or for an
interconnection as specified by an Interconnection Agreement.
Southwestern, at its sole option, may reduce or waive Power
Factor Penalties when, in Southwestern's sole judgment, low power
factor conditions were not detrimental to the System of Southwestern
due to particular loading and voltage conditions at the time the
power factor dropped below 95 percent lagging.
4. Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions
{tc\12 ``2 Initial Allocation and Renewal Procedures''{time}
4.1. Real Power Losses {tc\13 ``2.1 Initial Allocation and Renewal
Procedures''{time}
Customers are required to self-provide all Real Power Losses for
non-Federal energy transmitted by Southwestern on behalf of such
Customers under the provisions detailed below.
Real Power Losses are computed as four (4) percent of the total
amount of non-Federal energy transmitted by Southwestern. The
Customer's monthly Real Power Losses are computed each month on a
megawatthour basis as follows:
ML = 0.04 x NFE
with the factors defined as follows:
ML = The total monthly loss energy, rounded to the nearest
megawatthour, to be scheduled by a Customer for receipt by
Southwestern for Real Power Losses associated with non-Federal
energy transmitted on behalf of such Customer; and
NFE = The amount of non-Federal energy that was transmitted by
Southwestern on behalf of a Customer during a particular month.
The Customer must schedule or cause to be scheduled to
Southwestern, Real Power Losses for which it is responsible subject
to the following conditions:
4.1.1. The Customer shall schedule and deliver Real Power Losses
back to Southwestern during the second month after they were
incurred by Southwestern in the transmission of the Customer's non-
Federal power and energy over the System of Southwestern unless such
Customer has accounted for Real Power Losses as part of a metering
arrangement with Southwestern.
4.1.2. On or before the twentieth day of each month,
Southwestern shall determine the amount of non-Federal loss energy
it provided on behalf of the Customer during the previous month and
provide a written schedule to the Customer setting forth hour-by-
hour the quantities of non-Federal energy to be delivered to
Southwestern as losses during the next month.
4.1.3. Real Power Losses not delivered to Southwestern by the
Customer, according to the schedule provided, during the month in
which such losses are due shall be billed by Southwestern to the
Customer to adjust the end-of-month loss energy balance to zero (0)
megawatthours and the Customer shall be obliged to purchase such
energy at the following rates:
------------------------------------------------------------------------
Rate per
Months associated with charge kilowatthour
------------------------------------------------------------------------
March, April, May, October, November, December.......... $0.15
January, February, June, July, August, September........ 0.30
------------------------------------------------------------------------
4.1.4. Real Power Losses delivered to Southwestern by the
Customer in excess of the losses due during the month shall be
purchased by Southwestern from the Customer at a rate per
megawatthour equal to Southwestern's rate per megawatthour for
Supplemental Peaking Energy, as set forth in Southwestern's then-
effective Rate Schedule for Hydro Peaking Power to adjust such
hourly end-of-month loss energy balance to zero (0) megawatthours.
4.2. Peaking Energy Schedule Submission Time
Southwestern's Peaking Energy Schedule Submission Time is on or
before 8:30 a.m. Central Prevailing Time (CPT), as adjusted by the
Administrator, Southwestern, in accordance with Section 4.2.2 in
this Rate Schedule, of the day preceding the day for the delivery of
Peaking Energy. The Peaking Energy Schedule Submission Time
supersedes the Peaking Energy schedule submission time provided in
the Customer's Power Sales Contract, pursuant to Section 4.2.1 of
this Rate Schedule. Reductions to Peaking Energy schedules may be
made in accordance with Section 4.2.3 of this Rate Schedule.
4.2.1. Applicability of Peaking Energy Schedule Submission Time
The Peaking Energy Schedule Submission Time shall apply to the
scheduling of Peaking Energy. The Peaking Energy Schedule Submission
Time shall not apply to the scheduling of Supplemental Peaking
Energy or to Contract Support Arrangements.
4.2.2. Procedure for Adjusting the Peaking Energy Schedule Submission
Time
Not more than once annually, the Peaking Energy Schedule
Submission Time of 8:30 a.m. CPT, as noted in Section 4.2 of this
Rate Schedule, may be adjusted by the Administrator, Southwestern,
to a time no earlier than 8:00 a.m. CPT and no later than 9:00 a.m.
CPT.
4.2.2.1. Determination of Need To Adjust the Peaking Energy Schedule
Submission Time
The Administrator, Southwestern, will make a determination on
the need to adjust the Peaking Energy Schedule Submission Time based
on Southwestern's studies involving financial analysis, regional
energy market conditions, and/or operational considerations.
4.2.2.2. Notification of Peaking Energy Schedule Submission Time
Adjustment
The Administrator, Southwestern, will notify customers of the
determination to adjust the Peaking Energy Schedule Submission Time
in writing no later than 30 calendar days prior to the effective
date of
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the Peaking Energy Schedule Submission Time adjustment.
4.2.3. Reductions to Peaking Energy Schedules After the Peaking Energy
Schedule Submission Time
Customers may reduce Peaking Energy Schedules submitted for July
15, 2023, through September 15, 2023, after the Peaking Energy
Schedule Submission Time in accordance with this Section 4.2.3. Such
changes must be coordinated with Southwestern Scheduling and
Operations staff no later than 2:00 p.m. CPT the day prior to
schedule implementation.
4.2.3.1. Customers must submit a Peaking Energy Schedule by the
Peaking Energy Schedule Submission Time.
4.2.3.2. For hours the Customer has scheduled a non-zero energy
amount, the Customer may reduce the amount of Peaking Energy
scheduled for that same hour by no more than 25 percent. Customers
may not increase the Peaking Energy scheduled for any hour.
4.2.3.3. For determining the 25 percent Peaking Energy hourly
reduction limit, fractional megawatt reductions will round to the
nearest whole megawatt. Values ending in 0.01 to 0.49 will round
down and values ending in 0.50 to 0.99 will round up.
4.2.3.4. Customers choosing to reduce the Peaking Energy
Schedule must adjust the applicable transaction tag to reflect the
desired reductions no later than 2:00 CPT the day prior to schedule
implementation.
[FR Doc. 2023-14401 Filed 7-6-23; 8:45 am]
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