Boulder Canyon Project, 60203-60205 [2023-18849]
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Federal Register / Vol. 88, No. 168 / Thursday, August 31, 2023 / Notices
others, access publicly available
information and navigate Commission
processes. For public inquiries and
assistance with making filings such as
interventions, comments, or requests for
rehearing, the public is encouraged to
contact OPP at (202) 502–6595 or OPP@
ferc.gov.
n. Scoping Process: Pursuant to the
National Environmental Policy Act
(NEPA), Commission staff intends to
prepare either an environmental
assessment (EA) or an environmental
impact statement (EIS) (collectively
referred to as the ‘‘NEPA document’’)
that describes and evaluates the
probable effects, including an
assessment of the site-specific and
cumulative effects, if any, of the
proposed action and alternatives. The
Commission’s scoping process will help
determine the required level of analysis
and satisfy the NEPA scoping
requirements, irrespective of whether
the Commission issues an EA or an EIS.
Scoping Meetings
Commission staff will hold two public
scoping meetings for the projects to
receive input on the scope of the
environmental issues that should be
analyzed in the NEPA document. An
evening meeting will be held at 7:00
p.m. on September 27, 2023, at the City
Hall of Hurley, Wisconsin, and will
focus on receiving input from the
public. A daytime meeting will be held
at 9:00 a.m. on September 28, 2023, at
the same location, and will focus on the
concerns of resource agencies, nongovernmental organizations (NGOs), and
Indian Tribes. We invite all interested
agencies, Indian Tribes, nongovernmental organizations, and
individuals to attend one or both of
these meetings. The times and locations
of these meetings are as follows:
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Evening Scoping Meeting
Date: Wednesday, September 27, 2023
Time: 7:00 p.m. (CDT)
Place: City Hall of Hurley
Address: 405 5th Avenue North, Hurley,
WI 54534
Daytime Scoping Meeting
Date: Thursday, September 28, 2023
Time: 9:00 a.m. (CDT)
Place: City Hall of Hurley
Address: 405 5th Avenue North, Hurley,
WI 54534
Copies of the Scoping Document
(SD1) outlining the proposed project
and subject areas to be addressed in the
NEPA document were distributed to the
parties on the Commission’s mailing
list. Copies of the SD1 will be available
at the scoping meeting or may be
viewed on the web at https://
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60203
www.ferc.gov using the ‘‘eLibrary’’ link
(see item m above).
clarifying the issues to be addressed in
the NEPA document.
Environmental Site Reviews
The applicant and Commission staff
will conduct environmental site reviews
of the projects. All interested
individuals, agencies, Indian Tribes,
and NGOs are invited to attend. All
participants are responsible for their
own transportation to the sites and
during the site visits. Please RSVP via
email to matthew.j.miller@
xcelenergy.com or notify Matthew
Miller at 715–737–1353 on or before
Friday, September 22, 2023, if you plan
to attend the environmental site
reviews. The times and locations of the
environmental site reviews are as
follows:
Dated: August 25, 2023.
Kimberly D. Bose,
Secretary.
Saxon Falls and Superior Falls
Hydroelectric Projects
Date: Wednesday, September 27, 2023
Time: 10:00 a.m. (CDT)
Place: Superior Falls Hydroelectric
Project
Participants will meet at the Superior
Falls parking lot for the powerhouse of
the Superior Project, which is located
on Lake Superior Rd, immediately
adjacent to the west side of Lake County
Park (Latitude 46.56494/Longitude90.41523). Immediately following the
site review at the Superior Project,
participants will proceed to the Saxon
Project. All participants are responsible
for their own transportation and must
wear sturdy, closed-toe shoes, or boots.
Objectives
At the scoping meetings, Commission
staff will: (1) summarize the
environmental issues tentatively
identified for analysis in the NEPA
document; (2) solicit from the meeting
participants all available information,
especially quantifiable data, on the
resources at issue; (3) encourage
statements from experts and the public
on issues that should be analyzed in the
NEPA document, including viewpoints
in opposition to, or in support of, the
staff’s preliminary views; (4) determine
the resource issues to be addressed in
the NEPA document; and (5) identify
those issues that require a detailed
analysis, as well as those issues that do
not require a detailed analysis.
Procedures
The meetings are recorded by a
stenographer and become part of the
formal record of the Commission
proceeding on the project. Individuals,
NGOs, Indian Tribes, and agencies with
environmental expertise and concerns
are encouraged to attend the meeting
and to assist the staff in defining and
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[FR Doc. 2023–18872 Filed 8–30–23; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
Western Area Power
Administration (WAPA), Department of
Energy (DOE).
ACTION: Notice concerning fiscal year
(FY) 2024 base charge and rates for
Boulder Canyon Project (BCP) electric
service.
AGENCY:
The Deputy Secretary
confirms, approves, and places into
effect on a final basis the Boulder
Canyon Project base charge and rates for
fiscal year 2024 under Rate Schedule
BCP–F11. The base charge increased
11.3 percent from $66.8 million in FY
2023 to $74.3 million in FY 2024. The
change is primarily the result of an
increase in the Bureau of Reclamation’s
(Reclamation) replacement costs, an
increase in WAPA’s operations and
maintenance (O&M) expenses and
replacement costs, and a decrease in
prior year carryover funds from FY
2023.
DATES: The FY 2024 base charge and
rates are effective October 1, 2023, and
will remain in effect through September
30, 2024.
FOR FURTHER INFORMATION CONTACT: Jack
D. Murray, Regional Manager, Desert
Southwest Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457, or Tina
Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power
Administration, (602) 605–2565, or
email: dswpwrmrk@wapa.gov.
SUPPLEMENTARY INFORMATION: On March
31, 2023, the Federal Energy Regulatory
Commission (FERC) approved and
confirmed Rate Schedule BCP–F11,
under Rate Order No. WAPA–204, on a
final basis through September 30, 2027.1
WAPA published a Federal Register
notice (Proposed FRN) on April 18,
2023 (88 FR 23669), proposing the FY
2024 base charge and rates under Rate
Schedule BCP–F11. The Proposed FRN
also initiated a 90-day public
consultation and comment period and
SUMMARY:
1 Order Confirming and Approving Rate Schedule
on a Final Basis, FERC Docket No. EF22–4–000
(2023).
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60204
Federal Register / Vol. 88, No. 168 / Thursday, August 31, 2023 / Notices
set forth the date and location of the
public information and public comment
forums.
The proposed FY 2024 base charge
was a 3.5 percent increase over the FY
2023 base charge. In addition, due to
recent favorable hydrology projections
and following BCP contractor comments
during the public consultation and
comment period, additional funding of
$5.5 million has been reallocated from
future years to the FY 2024 budget to
accelerate Reclamation’s cylinder gate
stem replacement project and continue
WAPA’s relay and breaker replacement
project. These factors will increase the
base charge 11.3 percent from $66.8
million in FY 2023 to $74.3 million in
FY 2024.
The rate-setting methodology for BCP
electric service requires a calculation of
an annual base charge rather than a unit
rate for Hoover Dam hydropower. The
base charge recovers an annual revenue
requirement that includes projected
costs of investment repayment, interest,
operations, maintenance, replacements,
payments to states, and Hoover Dam
visitor services. Non-power revenue
projections such as water sales, Hoover
Dam visitor revenue, ancillary services,
and late fees help offset these projected
ddrumheller on DSK120RN23PROD with NOTICES1
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FY 2024
66,798,560
22.43
11.22
2.17
74,334,285
23.10
11.55
2.15
five-year average of recent actual
expenses.
Costs for Reclamation and WAPA are
offset by a slight increase of $18,000 in
non-power revenue projections,
resulting from a higher estimate for
ancillary services. Prior year carryover
is projected to be $2.2 million, a $3.4
million decrease from FY 2023.
The proposed FY 2024 base charge for
BCP electric service is projected to
increase from $66.8 million in FY 2023
to $74.3 million in FY 2024, an 11.3
percent increase. The composite rate is
increasing 3 percent and the energy rate
is increasing 2.9 percent. The capacity
rate is decreasing 0.9 percent from FY
2023, due to increases in capacity
forecasts. These unit rate calculations
use forecasted energy and capacity
values. With the uncertainty of
hydrological conditions, Reclamation
and Desert Southwest Region (DSW)
will continue to work collaboratively to
lessen the impact of the ongoing
drought in the Colorado River Basin in
subsequent years.
Public Notice and Comment
DSW followed the Procedures for
Public Participation in Power and
Transmission Rate Adjustments and
Extensions (10 CFR part 903) and
General Regulations for the Charges for
the Sale of Power from the BCP (10 CFR
part 904). DSW took the following steps
to involve interested parties in the rate
process:
1. DSW provided a website where
information is posted about this rate
process. The website is located at
www.wapa.gov/regions/DSW/Rates/
Pages/boulder-canyon-rates.aspx.
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Comparison of Base Charge and Rates
FY 2023
Base Charge ($) ..............................................................................................
Composite Rate (mills/kWh) ............................................................................
Energy Rate (mills/kWh) ..................................................................................
Capacity Rate ($/kW-Mo) ................................................................................
Reclamation’s FY 2024 budget is
increasing $3.3 million from $84.7
million to $88 million, a 3.9 percent
increase from FY 2023. Reflected in this
budget, O&M costs are decreasing by
$811,000 primarily due to the
elimination of three positions and the
associated travel and training costs. This
decrease in O&M costs includes a midyear review adjustment of $300,000,
resulting from changing the financial
audit period from every three years to
every five years, thereby postponing the
FY 2024 audit until FY 2026.
Replacement costs are increasing by
$3.3 million in FY 2024 due to
continuing the unit control
modernization, 480-volt switchgear, and
the cylinder gate stem replacement
projects. Post-retirement benefits costs
are increasing $104,000 based on a
higher five-year average of recent actual
expenses. Visitor services costs are
increasing by $728,000, primarily due to
costs for the National Park Services
security agreement being realigned from
security forces in O&M to visitor
services.
WAPA’s FY 2024 budget is increasing
$850,000 to $9.6 million, a 9.7 percent
increase from FY 2023. WAPA’s O&M
costs are increasing $680,000 from FY
2023 due to higher labor projections for
salaries, overtime, overhead, and
benefits and an updated charging
methodology from overhead to direct
charging for power billing. WAPA’s
replacement costs are increasing
$130,000 from FY 2023 due to the
continuation of the relay and breaker
replacement project. WAPA’s postretirement benefit costs are increasing
$39,000 from FY 2023 due to a higher
costs. Hoover power customers are
billed a percentage of the base charge in
proportion to their power allocation.
Unit rates are calculated for comparative
purposes but are not used to determine
the charges for electric service.
Rate Schedule BCP–F11 and the BCP
Electric Service Contract require WAPA
to calculate the annual base charge and
rates for the next fiscal year before
October 1 of each year. The FY 2023
BCP base charge and rates expire on
September 30, 2023.
Sfmt 4703
Amount
change
7,535,725
0.67
0.33
¥0.02
Percent
change
11.3
3.0
2.9
¥0.9
2. On April 18, 2023, a Federal
Register notice (88 FR 23669)
announced the proposed FY 2024 base
charge and rates and initiated the 90day public consultation and comment
period.
3. On April 18, 2023, DSW notified
contractors and interested parties of the
proposed rates and provided a copy of
the published Proposed FRN by email.
4. On May 18, 2023, DSW held a
public information forum via video
conference. This provided contractors
and interested parties an opportunity to
provide official comments for the
record.
5. On June 13, 2023, DSW posted on
its website responses to questions asked
at the public information forum about
Reclamation’s Supplemental
Environmental Impact Statement, the
Western Energy Imbalance Market, and
the Colorado River Storage Project’s
potential participation in the Southwest
Power Pool’s Western Regional
Transmission Organization.
6. On June 20, 2023, DSW held a
public comment forum via video
conference. This provided contractors
and interested parties an opportunity to
provide official comments for the
record.
7. During the 90-day consultation and
comment period, which ended on July
17, 2023, DSW received comments from
17 contractors and interested parties.
DSW’s responses to questions received
prior to the public comment forum were
posted to the BCP website. DSW’s
responses to comments received during
or after the public comment forum
appear below, paraphrased where
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ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 168 / Thursday, August 31, 2023 / Notices
appropriate without compromising their
meaning.
Comment: At the public comment
forum, five contractors and interested
parties expressed support for increasing
Reclamation and WAPA’s replacement
budgets for FY 2024. Following a
special session of the BCP Engineering
and Operating Committee on June 29,
2023, a summary of which is provided
on DSW’s website, 11 additional
contractors and interested parties
expressed support for increasing
Reclamation and WAPA’s replacement
budgets by moving costs associated with
Reclamation’s cylinder gate stem project
in the amount of $4.5 million and
WAPA’s relay and breaker replacement
projects in the amount of $950,000 from
future years into FY 2024. Commenters
stated they are aware the acceleration of
these projects will increase the FY 2024
base charge and rates. Commenters
further noted the favorable hydrology
projections for FY 2024 provide an
opportunity to complete some needed
maintenance, reduce the total cost of the
projects, and should put downward
pressure on the rates in subsequent
years.
Response: Reclamation and WAPA
appreciate the comments and the
support on the acceleration of
Reclamation’s cylinder gate stem project
and the continuation of WAPA’s relay
and breaker replacement project. The
costs associated with these projects have
been moved from future years and will
be included in the FY 2024 budget, base
charge, and rates.
Comment: One commenter expressed
concerns about future work plans,
maintaining and operating the Hoover
Dam visitor center, and the decreasing
Hoover Dam visitor center revenues.
The commenter would like Reclamation
and WAPA to continue their efforts to
mitigate the effects on the base charge
and rates and for Reclamation to
consider making changes to the visitor
center.
Response: Reclamation and WAPA
acknowledge the comment and will
continue to work collaboratively with
the contractors on moderating future
costs and mitigating the effects on the
base charge and rates to ensure rates are
the lowest possible consistent with
sound business principles.
Comment: One commenter also
requested that future energy and
capacity projections be considered as
alternative sets of data for future rate
analysis.
Response: Reclamation and WAPA
agree with this request to consider
alternative data sets in future rate
analysis and will work to incorporate
the data in future meetings.
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60205
Certification of Rates
Ratemaking Procedure Requirements
WAPA’s Administrator certified the
FY 2024 base charge and rates under
Rate Schedule BCP–F11 are the lowest
possible rates consistent with sound
business principles. The base charge
and rates were developed following
administrative policies and applicable
laws.
Environmental Compliance
Availability of Information
Information used by WAPA to
develop the base charge and rates for
electric service is available for
inspection and copying at the Desert
Southwest Customer Service Regional
Office, located at 615 South 43rd
Avenue, Phoenix, Arizona. Many of
these documents are also available on
DSW’s website at www.wapa.gov/
regions/DSW/Rates/Pages/bouldercanyon-rates.aspx.
Legal Authority
DOE regulations governing charges for
the sale of BCP power, 10 CFR 904.7(e),
require annual review of the BCP base
charge and an ‘‘adjust[ment], either
upward or downward, when necessary
and administratively feasible, to assure
sufficient revenues to effect payment of
all costs and financial obligations
associated with the [p]roject.’’ WAPA’s
Administrator provided all BCP
contractors an opportunity to comment
on the proposed base charge adjustment,
consistent with DOE procedures for
public participation in rate adjustments.
The BCP Electric Service Contract states
for years other than the first year and
each fifth year thereafter, when the rate
schedule is approved by the Deputy
Secretary on a provisional basis and by
FERC on a final basis, adjustments to
the base charge ‘‘shall become effective
upon approval by the Deputy Secretary
of Energy.’’ Accordingly, the Deputy
Secretary of Energy may approve the FY
2024 base charge and rates for BCP
electric service, as authorized by the
BCP Electric Service Contract and DOE’s
procedures for public participation in
rate adjustments set forth at 10 CFR
parts 903 and 904.2
Following DOE’s review of WAPA’s
proposal, and as authorized by
applicable provisions of the BCP
Electric Service Contract, I have
confirmed, approved, and placed the FY
2024 base charge and rates for BCP
electric service, under Rate Schedule
BCP F–11, into effect on a final basis
through September 30, 2024.
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
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WAPA has determined that this
action fits within the following
categorical exclusions listed in
appendix B to subpart D of 10 CFR
1021: B4.3 (Electric power marketing
rate changes). Categorically excluded
projects and activities do not require
preparation of either an environmental
impact statement or an environmental
assessment.3 A copy of the categorical
exclusion determination is available on
WAPA’s website at www.wapa.gov/
regions/DSW/Environment/Pages/
environment.aspx.
Determination Under Executive Order
12866
WAPA has an exemption from
centralized regulatory review under
Executive Order 12866; accordingly, no
clearance of this notice by the Office of
Management and Budget is required.
Signing Authority
This document of the Department of
Energy was signed on August 25, 2023,
by David M. Turk, Deputy Secretary of
Energy. That document, with the
original signature and date, is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on August 28,
2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2023–18849 Filed 8–30–23; 8:45 am]
BILLING CODE 6450–01–P
3 The determination was done in compliance with
NEPA (42 U.S.C. 4321–4347); the Council on
Environmental Quality Regulations for
implementing NEPA (40 CFR parts 1500–1508); and
DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021).
E:\FR\FM\31AUN1.SGM
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Agencies
[Federal Register Volume 88, Number 168 (Thursday, August 31, 2023)]
[Notices]
[Pages 60203-60205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18849]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
AGENCY: Western Area Power Administration (WAPA), Department of Energy
(DOE).
ACTION: Notice concerning fiscal year (FY) 2024 base charge and rates
for Boulder Canyon Project (BCP) electric service.
-----------------------------------------------------------------------
SUMMARY: The Deputy Secretary confirms, approves, and places into
effect on a final basis the Boulder Canyon Project base charge and
rates for fiscal year 2024 under Rate Schedule BCP-F11. The base charge
increased 11.3 percent from $66.8 million in FY 2023 to $74.3 million
in FY 2024. The change is primarily the result of an increase in the
Bureau of Reclamation's (Reclamation) replacement costs, an increase in
WAPA's operations and maintenance (O&M) expenses and replacement costs,
and a decrease in prior year carryover funds from FY 2023.
DATES: The FY 2024 base charge and rates are effective October 1, 2023,
and will remain in effect through September 30, 2024.
FOR FURTHER INFORMATION CONTACT: Jack D. Murray, Regional Manager,
Desert Southwest Region, Western Area Power Administration, P.O. Box
6457, Phoenix, AZ 85005-6457, or Tina Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power Administration, (602) 605-2565, or
email: [email protected].
SUPPLEMENTARY INFORMATION: On March 31, 2023, the Federal Energy
Regulatory Commission (FERC) approved and confirmed Rate Schedule BCP-
F11, under Rate Order No. WAPA-204, on a final basis through September
30, 2027.\1\ WAPA published a Federal Register notice (Proposed FRN) on
April 18, 2023 (88 FR 23669), proposing the FY 2024 base charge and
rates under Rate Schedule BCP-F11. The Proposed FRN also initiated a
90-day public consultation and comment period and
[[Page 60204]]
set forth the date and location of the public information and public
comment forums.
---------------------------------------------------------------------------
\1\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF22-4-000 (2023).
---------------------------------------------------------------------------
The proposed FY 2024 base charge was a 3.5 percent increase over
the FY 2023 base charge. In addition, due to recent favorable hydrology
projections and following BCP contractor comments during the public
consultation and comment period, additional funding of $5.5 million has
been reallocated from future years to the FY 2024 budget to accelerate
Reclamation's cylinder gate stem replacement project and continue
WAPA's relay and breaker replacement project. These factors will
increase the base charge 11.3 percent from $66.8 million in FY 2023 to
$74.3 million in FY 2024.
The rate-setting methodology for BCP electric service requires a
calculation of an annual base charge rather than a unit rate for Hoover
Dam hydropower. The base charge recovers an annual revenue requirement
that includes projected costs of investment repayment, interest,
operations, maintenance, replacements, payments to states, and Hoover
Dam visitor services. Non-power revenue projections such as water
sales, Hoover Dam visitor revenue, ancillary services, and late fees
help offset these projected costs. Hoover power customers are billed a
percentage of the base charge in proportion to their power allocation.
Unit rates are calculated for comparative purposes but are not used to
determine the charges for electric service.
Rate Schedule BCP-F11 and the BCP Electric Service Contract require
WAPA to calculate the annual base charge and rates for the next fiscal
year before October 1 of each year. The FY 2023 BCP base charge and
rates expire on September 30, 2023.
Comparison of Base Charge and Rates
----------------------------------------------------------------------------------------------------------------
FY 2023 FY 2024 Amount change Percent change
----------------------------------------------------------------------------------------------------------------
Base Charge ($)................................. 66,798,560 74,334,285 7,535,725 11.3
Composite Rate (mills/kWh)...................... 22.43 23.10 0.67 3.0
Energy Rate (mills/kWh)......................... 11.22 11.55 0.33 2.9
Capacity Rate ($/kW-Mo)......................... 2.17 2.15 -0.02 -0.9
----------------------------------------------------------------------------------------------------------------
Reclamation's FY 2024 budget is increasing $3.3 million from $84.7
million to $88 million, a 3.9 percent increase from FY 2023. Reflected
in this budget, O&M costs are decreasing by $811,000 primarily due to
the elimination of three positions and the associated travel and
training costs. This decrease in O&M costs includes a mid-year review
adjustment of $300,000, resulting from changing the financial audit
period from every three years to every five years, thereby postponing
the FY 2024 audit until FY 2026. Replacement costs are increasing by
$3.3 million in FY 2024 due to continuing the unit control
modernization, 480-volt switchgear, and the cylinder gate stem
replacement projects. Post-retirement benefits costs are increasing
$104,000 based on a higher five-year average of recent actual expenses.
Visitor services costs are increasing by $728,000, primarily due to
costs for the National Park Services security agreement being realigned
from security forces in O&M to visitor services.
WAPA's FY 2024 budget is increasing $850,000 to $9.6 million, a 9.7
percent increase from FY 2023. WAPA's O&M costs are increasing $680,000
from FY 2023 due to higher labor projections for salaries, overtime,
overhead, and benefits and an updated charging methodology from
overhead to direct charging for power billing. WAPA's replacement costs
are increasing $130,000 from FY 2023 due to the continuation of the
relay and breaker replacement project. WAPA's post-retirement benefit
costs are increasing $39,000 from FY 2023 due to a higher five-year
average of recent actual expenses.
Costs for Reclamation and WAPA are offset by a slight increase of
$18,000 in non-power revenue projections, resulting from a higher
estimate for ancillary services. Prior year carryover is projected to
be $2.2 million, a $3.4 million decrease from FY 2023.
The proposed FY 2024 base charge for BCP electric service is
projected to increase from $66.8 million in FY 2023 to $74.3 million in
FY 2024, an 11.3 percent increase. The composite rate is increasing 3
percent and the energy rate is increasing 2.9 percent. The capacity
rate is decreasing 0.9 percent from FY 2023, due to increases in
capacity forecasts. These unit rate calculations use forecasted energy
and capacity values. With the uncertainty of hydrological conditions,
Reclamation and Desert Southwest Region (DSW) will continue to work
collaboratively to lessen the impact of the ongoing drought in the
Colorado River Basin in subsequent years.
Public Notice and Comment
DSW followed the Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions (10 CFR part 903) and
General Regulations for the Charges for the Sale of Power from the BCP
(10 CFR part 904). DSW took the following steps to involve interested
parties in the rate process:
1. DSW provided a website where information is posted about this
rate process. The website is located at www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-rates.aspx.
2. On April 18, 2023, a Federal Register notice (88 FR 23669)
announced the proposed FY 2024 base charge and rates and initiated the
90-day public consultation and comment period.
3. On April 18, 2023, DSW notified contractors and interested
parties of the proposed rates and provided a copy of the published
Proposed FRN by email.
4. On May 18, 2023, DSW held a public information forum via video
conference. This provided contractors and interested parties an
opportunity to provide official comments for the record.
5. On June 13, 2023, DSW posted on its website responses to
questions asked at the public information forum about Reclamation's
Supplemental Environmental Impact Statement, the Western Energy
Imbalance Market, and the Colorado River Storage Project's potential
participation in the Southwest Power Pool's Western Regional
Transmission Organization.
6. On June 20, 2023, DSW held a public comment forum via video
conference. This provided contractors and interested parties an
opportunity to provide official comments for the record.
7. During the 90-day consultation and comment period, which ended
on July 17, 2023, DSW received comments from 17 contractors and
interested parties. DSW's responses to questions received prior to the
public comment forum were posted to the BCP website. DSW's responses to
comments received during or after the public comment forum appear
below, paraphrased where
[[Page 60205]]
appropriate without compromising their meaning.
Comment: At the public comment forum, five contractors and
interested parties expressed support for increasing Reclamation and
WAPA's replacement budgets for FY 2024. Following a special session of
the BCP Engineering and Operating Committee on June 29, 2023, a summary
of which is provided on DSW's website, 11 additional contractors and
interested parties expressed support for increasing Reclamation and
WAPA's replacement budgets by moving costs associated with
Reclamation's cylinder gate stem project in the amount of $4.5 million
and WAPA's relay and breaker replacement projects in the amount of
$950,000 from future years into FY 2024. Commenters stated they are
aware the acceleration of these projects will increase the FY 2024 base
charge and rates. Commenters further noted the favorable hydrology
projections for FY 2024 provide an opportunity to complete some needed
maintenance, reduce the total cost of the projects, and should put
downward pressure on the rates in subsequent years.
Response: Reclamation and WAPA appreciate the comments and the
support on the acceleration of Reclamation's cylinder gate stem project
and the continuation of WAPA's relay and breaker replacement project.
The costs associated with these projects have been moved from future
years and will be included in the FY 2024 budget, base charge, and
rates.
Comment: One commenter expressed concerns about future work plans,
maintaining and operating the Hoover Dam visitor center, and the
decreasing Hoover Dam visitor center revenues. The commenter would like
Reclamation and WAPA to continue their efforts to mitigate the effects
on the base charge and rates and for Reclamation to consider making
changes to the visitor center.
Response: Reclamation and WAPA acknowledge the comment and will
continue to work collaboratively with the contractors on moderating
future costs and mitigating the effects on the base charge and rates to
ensure rates are the lowest possible consistent with sound business
principles.
Comment: One commenter also requested that future energy and
capacity projections be considered as alternative sets of data for
future rate analysis.
Response: Reclamation and WAPA agree with this request to consider
alternative data sets in future rate analysis and will work to
incorporate the data in future meetings.
Certification of Rates
WAPA's Administrator certified the FY 2024 base charge and rates
under Rate Schedule BCP-F11 are the lowest possible rates consistent
with sound business principles. The base charge and rates were
developed following administrative policies and applicable laws.
Availability of Information
Information used by WAPA to develop the base charge and rates for
electric service is available for inspection and copying at the Desert
Southwest Customer Service Regional Office, located at 615 South 43rd
Avenue, Phoenix, Arizona. Many of these documents are also available on
DSW's website at www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-rates.aspx.
Legal Authority
DOE regulations governing charges for the sale of BCP power, 10 CFR
904.7(e), require annual review of the BCP base charge and an
``adjust[ment], either upward or downward, when necessary and
administratively feasible, to assure sufficient revenues to effect
payment of all costs and financial obligations associated with the
[p]roject.'' WAPA's Administrator provided all BCP contractors an
opportunity to comment on the proposed base charge adjustment,
consistent with DOE procedures for public participation in rate
adjustments. The BCP Electric Service Contract states for years other
than the first year and each fifth year thereafter, when the rate
schedule is approved by the Deputy Secretary on a provisional basis and
by FERC on a final basis, adjustments to the base charge ``shall become
effective upon approval by the Deputy Secretary of Energy.''
Accordingly, the Deputy Secretary of Energy may approve the FY 2024
base charge and rates for BCP electric service, as authorized by the
BCP Electric Service Contract and DOE's procedures for public
participation in rate adjustments set forth at 10 CFR parts 903 and
904.\2\
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\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Following DOE's review of WAPA's proposal, and as authorized by
applicable provisions of the BCP Electric Service Contract, I have
confirmed, approved, and placed the FY 2024 base charge and rates for
BCP electric service, under Rate Schedule BCP F-11, into effect on a
final basis through September 30, 2024.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this action fits within the following
categorical exclusions listed in appendix B to subpart D of 10 CFR
1021: B4.3 (Electric power marketing rate changes). Categorically
excluded projects and activities do not require preparation of either
an environmental impact statement or an environmental assessment.\3\ A
copy of the categorical exclusion determination is available on WAPA's
website at www.wapa.gov/regions/DSW/Environment/Pages/environment.aspx.
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\3\ The determination was done in compliance with NEPA (42
U.S.C. 4321-4347); the Council on Environmental Quality Regulations
for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA
Implementing Procedures and Guidelines (10 CFR part 1021).
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Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Signing Authority
This document of the Department of Energy was signed on August 25,
2023, by David M. Turk, Deputy Secretary of Energy. That document, with
the original signature and date, is maintained by DOE. For
administrative purposes only, and in compliance with requirements of
the Office of the Federal Register, the undersigned DOE Federal
Register Liaison Officer has been authorized to sign and submit the
document in electronic format for publication, as an official document
of the Department of Energy. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on August 28, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-18849 Filed 8-30-23; 8:45 am]
BILLING CODE 6450-01-P