Boulder Canyon Project, 28767-28769 [2024-08387]
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Federal Register / Vol. 89, No. 77 / Friday, April 19, 2024 / Notices
directed NNSA to prepare a lifecycle
cost estimate for disposal of surplus
plutonium using the dilute and dispose
strategy. The completed cost estimate
indicated that the estimate-to-complete
lifecycle cost of the dilute and dispose
strategy would be substantially lower
than the cost to complete the MOX
Program. In response, the Secretary of
Energy halted construction of the MFFF
in May 2018 by waiving the requirement
to use funds for MFFF construction as
required by the National Defense
Authorization Act of 2018. In a letter
dated May 10, 2018, the Secretary of
Energy certified ‘‘that the remaining
lifecycle cost for the dilute and dispose
approach will be less than
approximately half of the estimated
remaining lifecycle cost of the MOX fuel
program.’’ In 2018, NNSA terminated
construction of the MFFF. In 2019, the
U.S. Nuclear Regulatory Commission
(NRC) terminated the construction
license for MFFF. With the end of the
MOX project there was no longer a
disposition path for the 34 MT of
surplus plutonium that had been
designated for disposition as MOX fuel.
The decision to use the dilute and
dispose strategy for disposition of the 34
MT of surplus plutonium allows NNSA
to make the maximum use of existing,
proven technologies and operating
facilities.
Construction of the SPD Project will
continue consistent with DOE’s 2016
decision (81 FR 19588). When it
becomes operational, the project’s three
new gloveboxes for dilution will
significantly increase throughput
capacity. Other aspects of the SPD
Program, including pit transfer from
Pantex, ARIES operation at LANL, the
capability to transfer plutonium oxide
from LANL to SRS, dilution, assay, and
shipment of resulting CH–TRU waste to
WIPP for emplacement in the
underground, are operational and
require no upgrades or modifications to
continue operations. This decision will
result in continued progress toward the
disposition of 34 MT of surplus
plutonium while eliminating potential
conflicts with ongoing construction
projects and new missions within the
nuclear security enterprise.
After analyzing options for expanding
a PDP capability at SRS or LANL and
considering the current high volume of
major construction projects across the
nuclear security enterprise, NNSA has
decided to revisit the initiation of the
PDP capital line-item project. This will
result in initiation of the PDP project in
the mid-2030s rather than the mid2020s. NNSA may re-evaluate this
decision as conditions change in the
nuclear security enterprise. In the
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meantime, NNSA will continue to
dismantle surplus pits and produce
plutonium oxide at LANL and remains
fully committed to dispositioning 34
MT of surplus plutonium.
The Surplus Plutonium Disposition
line-item project execution at SRS will
continue as planned and NNSA will
continue to dilute and ship
downblended plutonium as defenserelated contact handled transuranic
waste to the Waste Isolation Pilot Plant
for permanent disposal. This decision
will allow NNSA to focus on removal of
material from South Carolina in
alignment with the DOE-South Carolina
Settlement Agreement.
Mitigation Measures
Operations at each facility involved in
the SPD Program would result in
airborne emissions of various
pollutants, including radionuclides, and
organic and inorganic constituents.
These emissions would continue to be
controlled using Best Available Control
Technology to ensure that emissions are
compliant with applicable standards.
Impacts would be controlled by use of
glovebox confinement, packaging as
applicable, and confinement and air
filtration systems to remove radioactive
particulates before discharging process
exhaust air to the atmosphere.
Occupational safety risks to workers
would be limited by adherence to
Federal and state laws, Occupational
Safety and Health Administration
regulations, NNSA requirements
including regulations and orders, and
plans and procedures for performing
work. NNSA facility operations adhere
to programs to ensure the reduction of
human health and safety impacts.
Workers are protected from specific
hazards by use of engineering and
administrative controls, use of personal
protective equipment, and monitoring
and training. Implementation of DOE’s
required Radiological Protection
Program limits impacts by ensuring that
radiological exposures and doses to all
personnel are maintained As Low As
Reasonably Achievable and by
providing job specific instructions to the
facility workers regarding the use of
personal protective equipment.
The Emergency Preparedness Program
required for each site mitigates potential
accident consequences by ensuring that
appropriate organizations are available
to respond to emergency situations and
take appropriate actions to recover from
accident events, while reducing the
spread of contamination and protecting
facility personnel and the public.
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28767
Signing Authority
This document of the Department of
Energy was signed on April 3, 2024, by
Jill Hruby, Under Secretary for Nuclear
Security and Administrator, NNSA,
pursuant to delegated authority from the
Secretary of Energy. That document
with the original signature and date is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on April 16,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2024–08390 Filed 4–18–24; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
Western Area Power
Administration, DOE.
ACTION: Notice of proposed fiscal year
2025 Boulder Canyon Project base
charge and rates for electric service.
AGENCY:
The Desert Southwest region
(DSW) of the Western Area Power
Administration (WAPA) proposes an
adjustment to the fiscal year (FY) 2025
base charge and rates for Boulder
Canyon Project (BCP) electric service
under Rate Schedule BCP–F11. The
proposed FY 2025 base charge is
unchanged from FY 2024 and will
remain at $74.3 million. The proposed
base charge and rates would go into
effect on October 1, 2024, and remain in
effect through September 30, 2025.
Publication of this Federal Register
notice will initiate the public process.
DATES: A consultation and comment
period begins today and will end July
18, 2024. DSW will present a detailed
explanation of the proposed FY 2025
base charge and rates at a public
information forum on May 20, 2024,
from 10 a.m. Mountain Standard Time
to no later than 12 p.m. Mountain
Standard Time. DSW will also host a
public comment forum on June 18,
2024, from 10 a.m. Mountain Standard
Time to no later than 12 p.m. Mountain
SUMMARY:
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Federal Register / Vol. 89, No. 77 / Friday, April 19, 2024 / Notices
Standard Time, or until the last
comment is received.
ADDRESSES: The public information and
public comment forums will be held
virtually and in person at WAPA’s
Desert Southwest Regional Office
located at 615 South 43rd Avenue,
Phoenix, Arizona 85009. Instructions for
participating in the forums will be
posted on DSW’s website at least 14
days prior to the public information and
comment forums at: www.wapa.gov/
about-wapa/regions/dsw/rates/bouldercanyon-project-rates. DSW will accept
written comments any time during the
consultation and comment period.
As access to Federal facilities is
controlled, any U.S. citizen wishing to
attend a public forum at WAPA must
present an official form of picture
identification (ID), such as a U.S.
driver’s license, U.S. passport, U.S.
Government ID, or U.S. military ID at
the time of the meeting. Foreign
nationals should contact Tina Ramsey,
Rates Manager, Desert Southwest
Region, Western Area Power
Administration, (602) 605–2565, or
dswpwrmrk@wapa.gov in advance of a
forum to obtain the necessary form for
admittance to the Desert Southwest
Regional Office. Written comments and
requests to be informed of Federal
Energy Regulatory Commission (FERC)
actions concerning the proposed base
charge and rates should be sent to: Jack
D. Murray, Regional Manager, Desert
Southwest Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457, or
dswpwrmrk@wapa.gov. DSW will post
information concerning the rate process
and written comments received to its
website at: www.wapa.gov/about-wapa/
regions/dsw/rates/boulder-canyonproject-rates.
FOR FURTHER INFORMATION CONTACT: Tina
Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power
Administration, (602) 605–2565, or
dswpwrmrk@wapa.gov.
SUPPLEMENTARY INFORMATION: Hoover
Dam,1 authorized by the Boulder
Canyon Project Act of 1928, as amended
(43 U.S.C. 617, et seq.), sits on the
Colorado River along the ArizonaNevada border. The Hoover Dam power
plant has 19 generating units (two for
plant use) with installed capacity of
2,078.8 megawatts (4,800 kilowatts for
plant use). In collaboration with the
U.S. Bureau of Reclamation
(Reclamation), WAPA markets and
delivers hydropower from the Hoover
Dam power plant through high-voltage
transmission lines and substations to
customers in Arizona, Southern
California, and Southern Nevada.
The rate-setting methodology for BCP
calculates 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 for 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 service.
On March 31, 2023, FERC approved
and confirmed Rate Schedule BCP–F11,
under Rate Order No. WAPA–204, on a
final basis through September 30, 2027.2
Rate Schedule BCP–F11 and the BCP
Electric Service Contract require WAPA
to determine the annual base charge and
rates for the next fiscal year before
October 1 of each year. The FY 2024
BCP base charge and rates expire on
September 30, 2024.
COMPARISON OF BASE CHARGE AND RATES
FY 2024
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Base Charge ($) ..................................................................................
Composite Rate (mills/kWh) ................................................................
Energy Rate (mills/kWh) ......................................................................
Capacity Rate ($/kW-Mo) ....................................................................
$74,334,285
23.10
11.55
$2.15
Amount
change
FY 2025
$74,334,285
24.61
12.30
$2.19
$0.00
1.51
0.75
$0.04
Percent
change
0.0
6.5
6.5
1.9
The proposed FY 2025 base charge for
BCP electric service is projected to
remain at $74.3 million, the same as FY
2024.
Reclamation’s FY 2025 budget is
decreasing $700,000 from $87.9 million
to $87.2 million, a 0.8 percent decrease
from FY 2024. Reflected in this budget,
O&M costs are increasing $1.1 million
primarily due to higher projected labor
costs for salaries, benefits, and
overhead. Several large projects are
being delayed, decreasing replacements
costs by $2.2 million. Post-retirement
benefits costs are increasing $109,000
based on a higher five-year average of
recent actual expenses. Visitor services
costs are increasing by $270,000
primarily due to higher projected labor
costs for salaries, benefits, overhead,
and overtime. The FY 2024 budget
amounts cited for Reclamation do not
include approximately $20.8 million in
costs that are funded by prior year
carryover from FY 2023.
WAPA’s FY 2025 budget is increasing
approximately $600,000 to $10.1
million, a 5.9 percent increase from FY
2024. WAPA’s O&M costs are increasing
$770,000 from FY 2024 due to higher
labor projections for salaries, overtime,
overhead, and benefits. The increase in
O&M costs is offset by a $208,000
decrease in replacement costs and
modest decreases in WAPA’s postretirement benefit costs and interest
expenses due to lower 5-year averages of
recent actual expenses. The FY 2024
budget amounts for WAPA do not
include approximately $282,000 in costs
that are funded by prior year carryover
from FY 2023.
Non-power revenue projections for
Reclamation and WAPA are decreasing
$2.1 million due to lower estimated
revenues for the Commercial Use Fee
program and ancillary services. Prior
year carryover is projected to be $4.1
million, a $1.9 million increase from FY
2024.
The composite and energy rate are
both increasing 6.5 percent and the
capacity rate is increasing 1.9 percent
from FY 2024. These unit rate
calculations use forecasted energy and
capacity values, which have been
decreasing due to the ongoing drought
in the Lower Colorado River Basin.
Forecasted energy and capacity values
may be updated when determining the
1 Hoover Dam was known as Boulder Dam from
1933 to 1947, but was renamed Hoover Dam by an
April 30, 1947, joint resolution of Congress. See Act
of April 30, 1947, H.J. Res. 140, ch. 46, 61 Stat. 56–
57.
2 Order Confirming and Approving Rate Schedule
on a Final Basis, FERC Docket No. EF22–4–000.
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Federal Register / Vol. 89, No. 77 / Friday, April 19, 2024 / Notices
final base charge and rates if
hydrological conditions change.
WAPA’s proposed base charge and
rates for FY 2025, which would be
effective October 1, 2024, are
preliminary and subject to change based
on modifications to forecasts before
publication of the final base charge and
rates.
lotter on DSK11XQN23PROD with NOTICES1
Legal Authority
WAPA is establishing rates for BCP
electric service in accordance with
section 302 of the DOE Organization Act
(42 U.S.C. 7152). This provision
transferred to, and vested in, the
Secretary of Energy certain functions of
the Secretary of the Interior, along with
the power marketing functions of
Reclamation. Those functions include
actions that specifically apply to the
BCP.
WAPA’s proposal to calculate the
base charge and rates for FY 2025
constitutes a major rate adjustment, as
defined by 10 CFR 903.2(d). In
accordance with 10 CFR 903.15, 10 CFR
903.16, and 10 CFR 904.7(e), DSW will
hold public information and public
comment forums for this rate
adjustment. DSW will review and
consider all timely public comments at
the conclusion of the consultation and
comment period and adjust the proposal
as appropriate.
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.’’ This
proposal is issued pursuant to
Delegation Order No. S1–DEL–RATES–
2016, effective November 19, 2016, in
which the Secretary of Energy delegated
the authority to develop power and
transmission rates to WAPA’s
Administrator. The BCP Electric Service
Contract states that for years other than
the first year and each fifth year
thereafter, when the rate schedule is
approved by the Deputy Secretary of
Energy 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 would approve the
final FY 2025 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
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02:06 Apr 19, 2024
Jkt 262001
forth at 10 CFR parts 903 and 904.3 The
FY 2025 base charge will also be filed
at FERC for informational purposes
only.
Availability of Information
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is in the process of
determining whether an environmental
assessment or an environmental impact
statement should be prepared or if this
action can be categorically excluded
from those requirements.4
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 April 12, 2024, by
Tracey A. LeBeau, Administrator,
Western Area Power Administration,
pursuant to delegated authority from the
Secretary of Energy. The 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.
3 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
4 In compliance with the National Environmental
Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et seq.,
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).
Frm 00054
Fmt 4703
Sfmt 4703
Signed in Washington, DC, on April 16,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2024–08387 Filed 4–18–24; 8:45 am]
All brochures, studies, comments,
letters, memorandums, or other
documents that DSW initiates or uses to
develop the proposed formula rates for
electric service and the base charge and
rates are available for inspection and
copying at the Desert Southwest
Regional Office, located at 615 South
43rd Avenue, Phoenix, Arizona. Many
of these documents and supporting
information are also available on DSW’s
website at: www.wapa.gov/about-wapa/
regions/dsw/rates/boulder-canyonproject-rates.
PO 00000
28769
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OPP–2015–0739; FRL–11816–01–
OCSPP]
Pesticide Registration Review; Draft
Human Health and Ecological Risk
Assessments for Formaldehyde and
Paraformaldehyde; Notice of
Availability
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
This notice announces the
availability of EPA’s draft human health
and ecological risk assessments for the
registration review of formaldehyde and
paraformaldehyde and opens a 60-day
public comment period on this
document.
SUMMARY:
Comments must be received on
or before June 18, 2024.
ADDRESSES: Submit your comments,
identified by docket identification (ID)
number EPA–HQ–OPP–2015–0739,
through the Federal eRulemaking Portal
at https://www.regulations.gov. Follow
the online instructions for submitting
comments. Do not submit electronically
any information you consider to be
Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute. Additional
instructions on commenting and visiting
the docket, along with more information
about dockets generally, is available at
https://www.epa.gov/dockets.
FOR FURTHER INFORMATION CONTACT: The
Chemical Review Manager for
formaldehyde identified in table 1 of
unit I.
For general questions on the
registration review program, contact:
Melanie Biscoe, Pesticide Re-Evaluation
Division (7508P), Office of Pesticide
Programs, Environmental Protection
Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460–0001; telephone
number: (202) 566–0701; email address:
biscoe.melanie@epa.gov.
SUPPLEMENTARY INFORMATION:
DATES:
I. General Information
A. Does this action apply to me?
This notice is directed to the public
in general and may be of interest to a
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]]>Agencies
[Federal Register Volume 89, Number 77 (Friday, April 19, 2024)]
[Notices]
[Pages 28767-28769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08387]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed fiscal year 2025 Boulder Canyon Project base
charge and rates for electric service.
-----------------------------------------------------------------------
SUMMARY: The Desert Southwest region (DSW) of the Western Area Power
Administration (WAPA) proposes an adjustment to the fiscal year (FY)
2025 base charge and rates for Boulder Canyon Project (BCP) electric
service under Rate Schedule BCP-F11. The proposed FY 2025 base charge
is unchanged from FY 2024 and will remain at $74.3 million. The
proposed base charge and rates would go into effect on October 1, 2024,
and remain in effect through September 30, 2025. Publication of this
Federal Register notice will initiate the public process.
DATES: A consultation and comment period begins today and will end July
18, 2024. DSW will present a detailed explanation of the proposed FY
2025 base charge and rates at a public information forum on May 20,
2024, from 10 a.m. Mountain Standard Time to no later than 12 p.m.
Mountain Standard Time. DSW will also host a public comment forum on
June 18, 2024, from 10 a.m. Mountain Standard Time to no later than 12
p.m. Mountain
[[Page 28768]]
Standard Time, or until the last comment is received.
ADDRESSES: The public information and public comment forums will be
held virtually and in person at WAPA's Desert Southwest Regional Office
located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Instructions
for participating in the forums will be posted on DSW's website at
least 14 days prior to the public information and comment forums at:
www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates.
DSW will accept written comments any time during the consultation and
comment period.
As access to Federal facilities is controlled, any U.S. citizen
wishing to attend a public forum at WAPA must present an official form
of picture identification (ID), such as a U.S. driver's license, U.S.
passport, U.S. Government ID, or U.S. military ID at the time of the
meeting. Foreign nationals should contact Tina Ramsey, Rates Manager,
Desert Southwest Region, Western Area Power Administration, (602) 605-
2565, or [email protected] in advance of a forum to obtain the
necessary form for admittance to the Desert Southwest Regional Office.
Written comments and requests to be informed of Federal Energy
Regulatory Commission (FERC) actions concerning the proposed base
charge and rates should be sent to: Jack D. Murray, Regional Manager,
Desert Southwest Region, Western Area Power Administration, P.O. Box
6457, Phoenix, AZ 85005-6457, or [email protected]. DSW will post
information concerning the rate process and written comments received
to its website at: www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates.
FOR FURTHER INFORMATION CONTACT: Tina Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power Administration, (602) 605-2565, or
[email protected].
SUPPLEMENTARY INFORMATION: Hoover Dam,\1\ authorized by the Boulder
Canyon Project Act of 1928, as amended (43 U.S.C. 617, et seq.), sits
on the Colorado River along the Arizona-Nevada border. The Hoover Dam
power plant has 19 generating units (two for plant use) with installed
capacity of 2,078.8 megawatts (4,800 kilowatts for plant use). In
collaboration with the U.S. Bureau of Reclamation (Reclamation), WAPA
markets and delivers hydropower from the Hoover Dam power plant through
high-voltage transmission lines and substations to customers in
Arizona, Southern California, and Southern Nevada.
---------------------------------------------------------------------------
\1\ Hoover Dam was known as Boulder Dam from 1933 to 1947, but
was renamed Hoover Dam by an April 30, 1947, joint resolution of
Congress. See Act of April 30, 1947, H.J. Res. 140, ch. 46, 61 Stat.
56-57.
---------------------------------------------------------------------------
The rate-setting methodology for BCP calculates 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 for 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 service.
On March 31, 2023, FERC approved and confirmed Rate Schedule BCP-
F11, under Rate Order No. WAPA-204, on a final basis through September
30, 2027.\2\ Rate Schedule BCP-F11 and the BCP Electric Service
Contract require WAPA to determine the annual base charge and rates for
the next fiscal year before October 1 of each year. The FY 2024 BCP
base charge and rates expire on September 30, 2024.
---------------------------------------------------------------------------
\2\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF22-4-000.
Comparison of Base Charge and Rates
----------------------------------------------------------------------------------------------------------------
FY 2024 FY 2025 Amount change Percent change
----------------------------------------------------------------------------------------------------------------
Base Charge ($)........................... $74,334,285 $74,334,285 $0.00 0.0
Composite Rate (mills/kWh)................ 23.10 24.61 1.51 6.5
Energy Rate (mills/kWh)................... 11.55 12.30 0.75 6.5
Capacity Rate ($/kW-Mo)................... $2.15 $2.19 $0.04 1.9
----------------------------------------------------------------------------------------------------------------
The proposed FY 2025 base charge for BCP electric service is
projected to remain at $74.3 million, the same as FY 2024.
Reclamation's FY 2025 budget is decreasing $700,000 from $87.9
million to $87.2 million, a 0.8 percent decrease from FY 2024.
Reflected in this budget, O&M costs are increasing $1.1 million
primarily due to higher projected labor costs for salaries, benefits,
and overhead. Several large projects are being delayed, decreasing
replacements costs by $2.2 million. Post-retirement benefits costs are
increasing $109,000 based on a higher five-year average of recent
actual expenses. Visitor services costs are increasing by $270,000
primarily due to higher projected labor costs for salaries, benefits,
overhead, and overtime. The FY 2024 budget amounts cited for
Reclamation do not include approximately $20.8 million in costs that
are funded by prior year carryover from FY 2023.
WAPA's FY 2025 budget is increasing approximately $600,000 to $10.1
million, a 5.9 percent increase from FY 2024. WAPA's O&M costs are
increasing $770,000 from FY 2024 due to higher labor projections for
salaries, overtime, overhead, and benefits. The increase in O&M costs
is offset by a $208,000 decrease in replacement costs and modest
decreases in WAPA's post-retirement benefit costs and interest expenses
due to lower 5-year averages of recent actual expenses. The FY 2024
budget amounts for WAPA do not include approximately $282,000 in costs
that are funded by prior year carryover from FY 2023.
Non-power revenue projections for Reclamation and WAPA are
decreasing $2.1 million due to lower estimated revenues for the
Commercial Use Fee program and ancillary services. Prior year carryover
is projected to be $4.1 million, a $1.9 million increase from FY 2024.
The composite and energy rate are both increasing 6.5 percent and
the capacity rate is increasing 1.9 percent from FY 2024. These unit
rate calculations use forecasted energy and capacity values, which have
been decreasing due to the ongoing drought in the Lower Colorado River
Basin. Forecasted energy and capacity values may be updated when
determining the
[[Page 28769]]
final base charge and rates if hydrological conditions change.
WAPA's proposed base charge and rates for FY 2025, which would be
effective October 1, 2024, are preliminary and subject to change based
on modifications to forecasts before publication of the final base
charge and rates.
Legal Authority
WAPA is establishing rates for BCP electric service in accordance
with section 302 of the DOE Organization Act (42 U.S.C. 7152). This
provision transferred to, and vested in, the Secretary of Energy
certain functions of the Secretary of the Interior, along with the
power marketing functions of Reclamation. Those functions include
actions that specifically apply to the BCP.
WAPA's proposal to calculate the base charge and rates for FY 2025
constitutes a major rate adjustment, as defined by 10 CFR 903.2(d). In
accordance with 10 CFR 903.15, 10 CFR 903.16, and 10 CFR 904.7(e), DSW
will hold public information and public comment forums for this rate
adjustment. DSW will review and consider all timely public comments at
the conclusion of the consultation and comment period and adjust the
proposal as appropriate.
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.'' This proposal is issued pursuant to Delegation Order No.
S1-DEL-RATES-2016, effective November 19, 2016, in which the Secretary
of Energy delegated the authority to develop power and transmission
rates to WAPA's Administrator. The BCP Electric Service Contract states
that for years other than the first year and each fifth year
thereafter, when the rate schedule is approved by the Deputy Secretary
of Energy 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 would approve the final FY 2025 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.\3\ The FY 2025 base charge will also
be filed at FERC for informational purposes only.
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\3\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that DSW initiates or uses to develop the proposed formula
rates for electric service and the base charge and rates are available
for inspection and copying at the Desert Southwest Regional Office,
located at 615 South 43rd Avenue, Phoenix, Arizona. Many of these
documents and supporting information are also available on DSW's
website at: www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is in the process of determining whether an environmental
assessment or an environmental impact statement should be prepared or
if this action can be categorically excluded from those
requirements.\4\
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\4\ In compliance with the National Environmental Policy Act of
1969 (NEPA), 42 U.S.C. 4321 et seq., 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 April 12,
2024, by Tracey A. LeBeau, Administrator, Western Area Power
Administration, pursuant to delegated authority from the Secretary of
Energy. The 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 April 16, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-08387 Filed 4-18-24; 8:45 am]
BILLING CODE 6450-01-P
