Loveland Area Projects-Rate Order No. WAPA-212, 53992-53995 [2024-14274]
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53992
Federal Register / Vol. 89, No. 125 / Friday, June 28, 2024 / Notices
transmission service necessary to
deliver the product(s) for which a
separate charge may be incurred. The
proposed Rate Schedule P–SED–M3
continues to allow for the sale of energy,
frequency response, regulation, and
reserves.
Legal Authority
khammond on DSKJM1Z7X2PROD with NOTICES
Existing DOE procedures for public
participation in power and transmission
rate adjustments (10 CFR part 903) were
published on September 18, 1985, and
February 21, 2019.2 The proposed
action is a major rate adjustment, as
defined by 10 CFR 903.2(d). In
accordance with 10 CFR 903.15(a) and
10 CFR 903.16(a), UGP will hold public
information and public comment
forums for this rate adjustment. UGP
will review and consider all timely
public comments at the conclusion of
the consultation and comment period
and adjust the proposal as appropriate.
The rates will then be approved on an
interim basis.
WAPA is establishing the formula
rates for P–SMPB—ED in accordance
with section302 of the DOE
Organization Act (42 U.S.C. 7152).3
By Delegation Order No. S1–DEL–
RATES–2016, effective November 19,
2016, the Secretary of Energy delegated:
(1) the authority to develop power and
transmission rates to the WAPA
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, or to remand
or disapprove such rates to FERC. By
Delegation Order No. S1–DEL–S3–2023,
effective April 10, 2023, the Secretary of
Energy also delegated the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Under Secretary for Infrastructure. By
Redelegation Order No. S3–DEL–
WAPA1–2023, effective April 10, 2023,
the Under Secretary for Infrastructure
redelegated the authority to confirm,
approve, and place such rates into effect
on an interim basis to WAPA’s
Administrator.
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
3 This Act transferred to, and vested in, the
Secretary of Energy the power marketing functions
of the Secretary of the Department of the Interior
and the Bureau of Reclamation (Reclamation) under
the Reclamation Act of 1902 (ch. 1093, 32 Stat.
388), as amended and supplemented by subsequent
laws, particularly section 9(c) of the Reclamation
Project Act of 1939 (43 U.S.C. 485h(c)) and section
5 of the Flood Control Act of 1944 (16 U.S.C. 825s);
and other acts that specifically apply to the projects
involved.
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Availability of Information
DEPARTMENT OF ENERGY
All brochures, studies, comments,
letters, memorandums, or other
documents that UGP initiates or uses to
develop the proposed formula rates are
available for inspection and copying at
the Upper Great Plains Regional Office,
located at 2900 4th Avenue North, 6th
Floor, Billings, Montana. Many of these
documents and supporting information
are also available on UGP’s website at:
www.wapa.gov/about-wapa/regions/
ugp/ugp-rates/2025-firm-rateadjustment.
Western Area Power Administration
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 June 24, 2024, by
Tracey A. LeBeau, Administrator,
Western Area Power Administration,
pursuant to delegated authority from the
Secretary of Energy. That document,
with the original signature and date, is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on June 25,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2024–14275 Filed 6–27–24; 8:45 am]
BILLING CODE 6450–01–P
4 In compliance with the National Environmental
Policy Act (NEPA) of 1969, as amended, 42 U.S.C.
4321–4347; the Council on Environmental Quality
Regulations for implementing NEPA (40 CFR parts
1500–1508); and DOE NEPA Implementing
Procedures and Guidelines (10 CFR part 1021).
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Loveland Area Projects—Rate Order
No. WAPA–212
Western Area Power
Administration, Department of Energy
(DOE).
ACTION: Notice of proposed firm electric
service and sale of surplus products
formula rates.
AGENCY:
The Rocky Mountain (RM)
region of the Western Area Power
Administration (WAPA) proposes
revised formula rates for the Loveland
Area Projects (LAP) firm electric service
(FES) and sale of surplus products. LAP
consists of the Fryingpan-Arkansas
Project (Fry-Ark) and the Pick-Sloan
Missouri Basin Program (P–SMBP)—
Western Division (WD), which were
integrated for marketing and ratemaking purposes in 1989. The existing
formula rates for these services, under
Rate Schedules L–F12 and L–M3, do not
expire until December 31, 2027;
however, the existing FES rate no longer
provides sufficient revenues to recover
interest expense and repay investments.
The formula rate for sale of surplus
products is not changing but is being
included in Rate Order No. WAPA–212
(WAPA–212) in order to make these rate
schedules effective for the same time
frame.
DATES: A consultation and comment
period will begin June 28, 2024 and end
August 27, 2024. Due to not receiving
final Fiscal Year (FY) 2023 financial
data until late January, holding
subsequent rate impact discussions with
customers between February and April,
and the subsequent time frame required
for completion of the Federal Register
notice workflow process, the
publication of this proposal was not
possible prior to the June 2024 time
frame. As such, and in order to continue
with the existing January 2025
implementation date, the time frame of
the consultation and comment period
has been shortened from the standard 90
days to 60 days. This shortened time
frame is allowed under 10 CFR
903.14(a), which states that, ‘‘. . .
periods may be shortened for good
cause shown.’’
RM will present a detailed
explanation of the proposed LAP
formula rates and other modifications at
a public information forum that will be
held on August 7, 2024, at 8:30 a.m.
MDT to no later than 10:30 a.m. MDT.
RM will also host a public comment
forum on August 7, 2024, at 11:00 a.m.
MDT to no later than noon MDT. The
SUMMARY:
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Federal Register / Vol. 89, No. 125 / Friday, June 28, 2024 / Notices
public information forum and the public
comment forum will only be conducted
virtually. Instructions for participating
in the forums will be posted on RM’s
website at least 14 days prior to the
public information and comment
forums at: www.wapa.gov/about-wapa/
regions/rm/rm-rates/2025-rateadjustment-firm-electric-service.
RM will accept comments any time
during the consultation and comment
period.
ADDRESSES: Written comments and
requests to be informed of Federal
Energy Regulatory Commission (FERC)
actions concerning the proposed
formula rates submitted by RM to FERC
for approval should be sent to: Barton V.
Barnhart, Regional Manager, Rocky
Mountain Region, Western Area Power
Administration, 5555 East Crossroads
Boulevard, Loveland, CO 80538–8986,
or email lapfirmadj@wapa.gov. RM will
post information about the proposed
formula rates and written comments
received to its website at:
www.wapa.gov/about-wapa/regions/rm/
rm-rates/2025-rate-adjustment-firmelectric-service.
FOR FURTHER INFORMATION CONTACT:
Sheila D. Cook, Rates Manager, Rocky
Mountain Region, Western Area Power
Administration, 5555 East Crossroads
Boulevard, Loveland, CO 80538–8986,
(970) 685–9562, or email scook@
wapa.gov or lapfirmadj@wapa.gov.
SUPPLEMENTARY INFORMATION: On
September 12, 2023, FERC confirmed
and approved Rate Schedule L–F12 and
Rate Schedule L–M3 under Rate Order
No. WAPA–202 (WAPA–202) on a final
basis through December 31, 2027.1
These schedules apply to FES and the
sale of surplus products. RM intends the
proposed formula rates under Rate
Schedule L–F13 and Rate Schedule L–
M4 to go into effect January 1, 2025. The
proposed formula rate schedules would
remain in effect until December 31,
2029, or until WAPA supersedes or
changes the formula rates through
another public rate process pursuant to
10 CFR part 903, whichever occurs first.
The proposed formula rates would
provide sufficient revenue to recover
annual operation, maintenance, and
replacement (OM&R) expenses, interest
expense, irrigation assistance, and
capital repayment requirements while
ensuring repayment of the project
within the cost recovery criteria set
forth in Department of Energy (DOE)
Order RA 6120.2. For more information
on the proposed rates, please see the
customer brochure located on RM’s
website at: www.wapa.gov/about-wapa/
regions/rm/rm-rates/2025-rateadjustment-firm-electric-service.
Firm Electric Service
The Fry-Ark and the P–SMBP FY
2023 Power Repayment Studies’ (PRSs)
revenue requirements, changes to future
workplans, and projected water
conditions are the determining factors
for this proposed rate adjustment.
The base component costs for the FryArk have increased primarily due to
increased annual expenses, mainly
transmission purchases and OM&R from
both WAPA and the Bureau of
Reclamation (Reclamation).
The base component costs for the P–
SMBP have increased primarily due to
increased OM&R from WAPA and the
generating agencies.
The driver behind the P–SMBP
drought adder component decrease is
the United States Army Corps of
Engineers (USACE) 2024 Annual
Operating Plan (AOP) projecting less
than average generation, though it is
better than generation projected in the
WAPA–202 January 2023 rate. Planned
repayment of both the base and drought
deficits are in the same time frame
(2027) as they were projected to be
repaid under WAPA–202. Uncertainties
with water inflows, hydro generation,
and replacement energy prices continue
to pose potential risks for meeting firm
power contractual commitments.
The net effect of these adjustments to
the base and drought adder components
results in an overall increase to the LAP
revenue requirement. Under Rate
Schedule L–F13, RM is proposing a twostep rate adjustment. For the base
component, the revenue requirements
and associated charges for each step
would be set values. For the drought
adder component, RM is proposing
estimated revenue requirements based
on the USACE’s 2024 AOP and drought
costs projected in the Final FY 2023
PRSs for the first and second steps. RM
will follow the previously established
‘‘annual drought adder adjustment
process’’ to determine if these estimated
values for the January 2025 and 2026
rate years require adjustment. If a
drought adder component change is
required for January 2025, a modified
drought adder revenue requirement and
the associated charges for January 2025,
and possibly new estimates for January
2026, will be included in the
publication of the notice of rate order
WAPA–212 and become effective
January 1, 2025. RM will also inform
customers of updates by letter and post
updates to RM’s external website.
A comparison of the current and
proposed revenue requirements is
shown in Table 1:
TABLE 1—SUMMARY OF CURRENT AND TWO-STEP PROPOSAL REVENUE REQUIREMENTS
Current
under L–F12
as of
Jan. 1, 2023
(in million $)
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LAP firm electric service
Total Revenue Requirement 1 ..............................................
Pick-Sloan—WD 2 .........................................................
Fry-Ark ..........................................................................
Base Component .................................................................
Pick-Sloan—WD 2 .........................................................
Fry-Ark ..........................................................................
Drought Adder Component 3 ................................................
Pick-Sloan—WD 2 .........................................................
Fry-Ark ..........................................................................
1 Proposed
Proposed
under L–F13
first step
as of
Jan. 1, 2025
(in million $)
$74.6
58.5
16.1
67.8
51.7
16.1
6.8
6.8
0.0
First step
percent
change
$81.3
62.6
18.7
76.4
57.7
18.7
4.9
4.9
0.0
9.0
7.0
16.1
12.7
11.6
16.1
¥27.9
¥27.9
0.0
values are estimates only based on using final base and estimated drought adder components.
1 Order Confirming and Approving Rate
Schedules on a Final Basis, FERC Docket No. EF23–
1–000 (2023).
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Proposed
under L–F13
second step
as of
Jan. 1, 2026
(in million $)
$87.9
66.3
21.6
85.1
63.5
21.6
2.8
2.8
0.0
Second step
percent
change
8.1
5.9
15.5
11.4
10.1
15.5
¥42.9
¥42.9
0.0
53994
Federal Register / Vol. 89, No. 125 / Friday, June 28, 2024 / Notices
2 Additional information on the overall P–SMBP PRS and charge components can be found in the proposal under Rate Order No. WAPA–213
and on the Upper Great Plains region’s website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
3 Proposed values are estimates that may change during the existing annual drought adder adjustment process.
Under the current rate methodology,
rates for LAP FES are designed to
recover an annual revenue requirement
that includes investment repayment,
interest, purchase power, OM&R, and
other expenses within the allowable
period. The annual revenue requirement
continues to be allocated equally
between capacity and energy.
A comparison of the current and
proposed rates is shown in Table 2:
TABLE 1—SUMMARY OF CURRENT AND TWO-STEP PROPOSAL RATES
Firm electric service
Current
under L–F12
as of
Jan. 1, 2023 1
Proposed
under L–F13
first step
as of
Jan. 1, 2025 1
36.61
$4.80
18.31
39.84
$5.22
19.92
LAP Composite Rate (mills/kilowatt-hour) ...........................
Firm Capacity Rate ($/kilowatt-month) ................................
Firm Energy Rate (mills/kilowatt-hour) ................................
1 Proposed
First step
percent
change
Proposed
under L–F13
second step
as of
Jan. 1, 2026 1
8.8
8.8
8.8
Second step
percent
change
43.10
$5.65
21.55
8.2
8.2
8.2
values are estimates only based on using final base and estimated drought adder components.
As a part of the current and proposed
rate schedules, RM provides for a
formula-based adjustment of the
drought adder component, with an
annual increase of up to 2 mills per
kilowatt-hour (kWh) each year. The 2
mills/kWh cap places a limit on the
amount the drought adder component
can be adjusted upward relative to
associated drought costs included in the
drought adder formula rate for any oneyear cycle. Continuing to identify the
FES revenue requirement using base
and drought adder components will
assist RM in the presentation of future
impacts of droughts, demonstrate
repayment of drought-related costs in
the PRSs, and allow RM to be more
responsive to changes caused by
drought-related expenses. RM will
continue to charge and bill its customers
FES rates for energy and capacity,
which are the sum of the base and
drought adder components.
A summary of the proposed charge
components is shown in Table 3:
TABLE 3—SUMMARY OF TWO-STEP PROPOSAL CHARGE COMPONENTS
Proposed charges under rate schedule
L–F13 first step as of Jan. 1, 2025
Base
component
Firm Capacity ($/kilowatt-month) .............
Firm Energy (mills/kWh) ..........................
1 Proposed
2 Proposed
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Total charge 2
$0.31
1.20
$5.22
19.92
$4.91
18.72
Base
component
Drought adder
component 1
Total charge 2
$0.18
0.69
$5.65
21.55
$5.47
20.86
values are estimates that may change during the existing annual drought adder adjustment process.
values are estimates only based on using final base and estimated drought adder components.
Sale of Surplus Products
The Sale of Surplus Products rate
schedule is formula-based, providing for
LAP Marketing to sell LAP surplus
energy and capacity products. If LAP
surplus products are available, as
specified in the rate schedule, the
charge will be based on market rates
plus administrative costs. The customer
will be responsible for acquiring
transmission service necessary to
deliver the product(s) for which a
separate charge may be incurred. The
proposed Rate Schedule, L–M4,
continues to allow for the sale of energy,
frequency response, regulation, and
reserves.
Legal Authority
Existing DOE procedures for public
participation in power and transmission
rate adjustments (10 CFR part 903) were
published on September 18, 1985, and
VerDate Sep<11>2014
Drought adder
component 1
Proposed charges under rate schedule
L–F13 second step as of Jan. 1, 2026
19:25 Jun 27, 2024
Jkt 262001
February 21, 2019.2 The proposed
action is a major rate adjustment, as
defined by 10 CFR 903.2(d). In
accordance with 10 CFR 903.15(a) and
10 CFR 903.16(a), RM will hold public
information and public comment
forums for this rate adjustment. RM will
review and consider all timely public
comments at the conclusion of the
consultation and comment period and
adjust the proposal as appropriate. The
rates will then be approved on an
interim basis.
WAPA is establishing the formula
rates for LAP in accordance with
section302 of the DOE Organization Act
(42 U.S.C. 7152).3
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
3 This Act transferred to, and vested in, the
Secretary of Energy the power marketing functions
of the Secretary of the Department of the Interior
and Bureau of Reclamation (Reclamation) under the
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388),
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By Delegation Order No. S1–DEL–
RATES–2016, effective November 19,
2016, the Secretary of Energy delegated:
(1) the authority to develop power and
transmission rates to the WAPA
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, or to remand
or disapprove such rates to FERC. By
Delegation Order No. S1–DEL–S3–2023,
effective April 10, 2023, the Secretary of
Energy also delegated the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Under Secretary for Infrastructure. By
as amended and supplemented by subsequent laws,
particularly section 9(c) of the Reclamation Project
Act of 1939 (43 U.S.C. 485h(c)) and section 5 of the
Flood Control Act of 1944 (16 U.S.C. 825s); and
other acts that specifically apply to the projects
involved.
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Federal Register / Vol. 89, No. 125 / Friday, June 28, 2024 / Notices
Redelegation Order No.S3–DEL–
WAPA1–2023, 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 WAPA’s
Administrator.
Signed in Washington, DC, on June 25,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2024–14274 Filed 6–27–24; 8:45 am]
BILLING CODE 6450–01–P
Availability of Information
All brochures, studies, comments,
letters, memorandums, or other
documents that RM initiates or uses to
develop the proposed formula rates are
available for inspection and copying at
the Rocky Mountain Regional Office
located at 5555 East Crossroads
Boulevard, Loveland, Colorado. Many of
these documents and supporting
information are also available on RM’s
website at: www.wapa.gov/about-wapa/
regions/rm/rm-rates/2025-rateadjustment-firm-electric-service.
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.
khammond on DSKJM1Z7X2PROD with NOTICES
Signing Authority
This document of the Department of
Energy was signed on June 24, 2024, by
Tracey A. LeBeau, Administrator,
Western Area Power Administration,
pursuant to delegated authority from the
Secretary of Energy. That document,
with the original signature and date, is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
4 In compliance with the National Environmental
Policy Act (NEPA) of 1969, as amended, 42 U.S.C.
4321–4347; the Council on Environmental Quality
Regulations for implementing NEPA (40 CFR parts
1500–1508); and DOE NEPA Implementing
Procedures and Guidelines (10 CFR part 1021).
VerDate Sep<11>2014
19:25 Jun 27, 2024
Jkt 262001
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OW–2024–0206; FRL 11920–01–
OW]
2024 Clean Water Act Section 319
Guidelines
Environmental Protection
Agency (EPA).
ACTION: Notice of availability.
AGENCY:
The U.S. Environmental
Protection Agency (EPA) announces
revised guidelines for eligible recipients
(states, territories, and the District of
Columbia) awarded Federal grants
under section 319 of the Clean Water
Act (CWA) for the implementation of
nonpoint source management programs
(‘‘2024 Guidelines’’). The 2024
guidelines describe the requirements
that apply to recipients of grants made
with funds appropriated by Congress
under the Clean Water Act. These new
guidelines will replace the Nonpoint
Source Program and Grants Guidelines
for States and Territories that have been
in effect since the fiscal year 2014 grant
cycle. The revisions are intended to
advance new science and information,
engage communities, and guide the
national Nonpoint Source Program.
FOR FURTHER INFORMATION CONTACT:
Cynthia Curtis, Watershed Restoration,
Assessment, and Protection Division,
Office of Water (4503T), Environmental
Protection Agency, 1301 Constitution
Ave. NW, Washington, DC 20460;
telephone number: 202–566–0340;
email address: curtis.cynthia@epa.gov.
A copy of the guidelines can be found
on the Clean Water Act section 319
Grant Guidance website, https://
www.epa.gov/nps/cwa-ss319-grantcurrent-guidance.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. General Information
This notice of availability is intended
to inform the public and state nonpoint
source management programs of the
release of the 2024 Guidelines. The
revisions to these guidelines were
informed by two years of stakeholder
engagements with Clean Water Act
section 319 grantees, sub-recipients of
CWA section 319 funding, local
community organizations, and other
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53995
important stakeholders. Among other
changes, these revisions encourage
recipients (states, territories, and the
District of Columbia) awarded CWA
section 319 funds to take actions that
ensure equitable access to nonpoint
source water quality benefits and
advance climate resilient nonpoint
source solutions. More information is
available on EPA’s 2023 nonpoint
source Guidelines updates website,
https://www.epa.gov/nps/319-granthistoric-guidance. EPA publishes
separate CWA section 319 guidelines for
Tribal grantees, https://www.epa.gov/
nps/tribal. State and Tribal nonpoint
source programs include a variety of
components, including technical
assistance, financial assistance,
education, training, technology transfer,
demonstration projects, and regulatory
programs. Clean Water Act section
319(h) grant funds are provided only to
designated state, territorial, and Tribal
agencies to implement EPA-approved
nonpoint source management programs.
More information is available on EPA’s
websites for 319 Grant Program for
States and Territories https://
www.epa.gov/nps/319-grant-programstates-and-territories and nonpoint
source program equity information,
https://www.epa.gov/nps/equityresources.
If you have questions regarding the
applicability of this action to a
particular entity, consult the person
listed in the FOR FURTHER INFORMATION
CONTACT section.
Ann Ferrio,
Deputy Director, Office of Wetlands, Oceans
and Watersheds.
[FR Doc. 2024–14277 Filed 6–27–24; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL OP–OFA–132]
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 14, 2024 10 a.m. EST
Through June 24, 2024 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.
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]]>Agencies
[Federal Register Volume 89, Number 125 (Friday, June 28, 2024)]
[Notices]
[Pages 53992-53995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14274]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Loveland Area Projects--Rate Order No. WAPA-212
AGENCY: Western Area Power Administration, Department of Energy (DOE).
ACTION: Notice of proposed firm electric service and sale of surplus
products formula rates.
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SUMMARY: The Rocky Mountain (RM) region of the Western Area Power
Administration (WAPA) proposes revised formula rates for the Loveland
Area Projects (LAP) firm electric service (FES) and sale of surplus
products. LAP consists of the Fryingpan-Arkansas Project (Fry-Ark) and
the Pick-Sloan Missouri Basin Program (P-SMBP)--Western Division (WD),
which were integrated for marketing and rate-making purposes in 1989.
The existing formula rates for these services, under Rate Schedules L-
F12 and L-M3, do not expire until December 31, 2027; however, the
existing FES rate no longer provides sufficient revenues to recover
interest expense and repay investments. The formula rate for sale of
surplus products is not changing but is being included in Rate Order
No. WAPA-212 (WAPA-212) in order to make these rate schedules effective
for the same time frame.
DATES: A consultation and comment period will begin June 28, 2024 and
end August 27, 2024. Due to not receiving final Fiscal Year (FY) 2023
financial data until late January, holding subsequent rate impact
discussions with customers between February and April, and the
subsequent time frame required for completion of the Federal Register
notice workflow process, the publication of this proposal was not
possible prior to the June 2024 time frame. As such, and in order to
continue with the existing January 2025 implementation date, the time
frame of the consultation and comment period has been shortened from
the standard 90 days to 60 days. This shortened time frame is allowed
under 10 CFR 903.14(a), which states that, ``. . . periods may be
shortened for good cause shown.''
RM will present a detailed explanation of the proposed LAP formula
rates and other modifications at a public information forum that will
be held on August 7, 2024, at 8:30 a.m. MDT to no later than 10:30 a.m.
MDT. RM will also host a public comment forum on August 7, 2024, at
11:00 a.m. MDT to no later than noon MDT. The
[[Page 53993]]
public information forum and the public comment forum will only be
conducted virtually. Instructions for participating in the forums will
be posted on RM's website at least 14 days prior to the public
information and comment forums at: www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.
RM will accept comments any time during the consultation and
comment period.
ADDRESSES: Written comments and requests to be informed of Federal
Energy Regulatory Commission (FERC) actions concerning the proposed
formula rates submitted by RM to FERC for approval should be sent to:
Barton V. Barnhart, Regional Manager, Rocky Mountain Region, Western
Area Power Administration, 5555 East Crossroads Boulevard, Loveland, CO
80538-8986, or email [email protected]. RM will post information
about the proposed formula rates and written comments received to its
website at: www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.
FOR FURTHER INFORMATION CONTACT: Sheila D. Cook, Rates Manager, Rocky
Mountain Region, Western Area Power Administration, 5555 East
Crossroads Boulevard, Loveland, CO 80538-8986, (970) 685-9562, or email
[email protected] or [email protected].
SUPPLEMENTARY INFORMATION: On September 12, 2023, FERC confirmed and
approved Rate Schedule L-F12 and Rate Schedule L-M3 under Rate Order
No. WAPA-202 (WAPA-202) on a final basis through December 31, 2027.\1\
These schedules apply to FES and the sale of surplus products. RM
intends the proposed formula rates under Rate Schedule L-F13 and Rate
Schedule L-M4 to go into effect January 1, 2025. The proposed formula
rate schedules would remain in effect until December 31, 2029, or until
WAPA supersedes or changes the formula rates through another public
rate process pursuant to 10 CFR part 903, whichever occurs first.
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\1\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF23-1-000 (2023).
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The proposed formula rates would provide sufficient revenue to
recover annual operation, maintenance, and replacement (OM&R) expenses,
interest expense, irrigation assistance, and capital repayment
requirements while ensuring repayment of the project within the cost
recovery criteria set forth in Department of Energy (DOE) Order RA
6120.2. For more information on the proposed rates, please see the
customer brochure located on RM's website at: www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.
Firm Electric Service
The Fry-Ark and the P-SMBP FY 2023 Power Repayment Studies' (PRSs)
revenue requirements, changes to future workplans, and projected water
conditions are the determining factors for this proposed rate
adjustment.
The base component costs for the Fry-Ark have increased primarily
due to increased annual expenses, mainly transmission purchases and
OM&R from both WAPA and the Bureau of Reclamation (Reclamation).
The base component costs for the P-SMBP have increased primarily
due to increased OM&R from WAPA and the generating agencies.
The driver behind the P-SMBP drought adder component decrease is
the United States Army Corps of Engineers (USACE) 2024 Annual Operating
Plan (AOP) projecting less than average generation, though it is better
than generation projected in the WAPA-202 January 2023 rate. Planned
repayment of both the base and drought deficits are in the same time
frame (2027) as they were projected to be repaid under WAPA-202.
Uncertainties with water inflows, hydro generation, and replacement
energy prices continue to pose potential risks for meeting firm power
contractual commitments.
The net effect of these adjustments to the base and drought adder
components results in an overall increase to the LAP revenue
requirement. Under Rate Schedule L-F13, RM is proposing a two-step rate
adjustment. For the base component, the revenue requirements and
associated charges for each step would be set values. For the drought
adder component, RM is proposing estimated revenue requirements based
on the USACE's 2024 AOP and drought costs projected in the Final FY
2023 PRSs for the first and second steps. RM will follow the previously
established ``annual drought adder adjustment process'' to determine if
these estimated values for the January 2025 and 2026 rate years require
adjustment. If a drought adder component change is required for January
2025, a modified drought adder revenue requirement and the associated
charges for January 2025, and possibly new estimates for January 2026,
will be included in the publication of the notice of rate order WAPA-
212 and become effective January 1, 2025. RM will also inform customers
of updates by letter and post updates to RM's external website.
A comparison of the current and proposed revenue requirements is
shown in Table 1:
Table 1--Summary of Current and Two-Step Proposal Revenue Requirements
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Proposed under Proposed under
Current under L-F13 first L-F13 second
LAP firm electric service L-F12 as of step as of First step step as of Second step
Jan. 1, 2023 Jan. 1, 2025 percent change Jan. 1, 2026 percent change
(in million $) (in million $) (in million $)
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Total Revenue Requirement \1\... $74.6 $81.3 9.0 $87.9 8.1
Pick-Sloan--WD \2\.......... 58.5 62.6 7.0 66.3 5.9
Fry-Ark..................... 16.1 18.7 16.1 21.6 15.5
Base Component.................. 67.8 76.4 12.7 85.1 11.4
Pick-Sloan--WD \2\.......... 51.7 57.7 11.6 63.5 10.1
Fry-Ark..................... 16.1 18.7 16.1 21.6 15.5
Drought Adder Component \3\..... 6.8 4.9 -27.9 2.8 -42.9
Pick-Sloan--WD \2\.......... 6.8 4.9 -27.9 2.8 -42.9
Fry-Ark..................... 0.0 0.0 0.0 0.0 0.0
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\1\ Proposed values are estimates only based on using final base and estimated drought adder components.
[[Page 53994]]
\2\ Additional information on the overall P-SMBP PRS and charge components can be found in the proposal under
Rate Order No. WAPA-213 and on the Upper Great Plains region's website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
\3\ Proposed values are estimates that may change during the existing annual drought adder adjustment process.
Under the current rate methodology, rates for LAP FES are designed
to recover an annual revenue requirement that includes investment
repayment, interest, purchase power, OM&R, and other expenses within
the allowable period. The annual revenue requirement continues to be
allocated equally between capacity and energy.
A comparison of the current and proposed rates is shown in Table 2:
Table 1--Summary of Current and Two-Step Proposal Rates
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Proposed under Proposed under
Current under L-F13 first L-F13 second
Firm electric service L-F12 as of step as of First step step as of Second step
Jan. 1, 2023 Jan. 1, 2025 percent change Jan. 1, 2026 percent change
\1\ \1\ \1\
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LAP Composite Rate (mills/ 36.61 39.84 8.8 43.10 8.2
kilowatt-hour).................
Firm Capacity Rate ($/kilowatt- $4.80 $5.22 8.8 $5.65 8.2
month).........................
Firm Energy Rate (mills/kilowatt- 18.31 19.92 8.8 21.55 8.2
hour)..........................
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\1\ Proposed values are estimates only based on using final base and estimated drought adder components.
As a part of the current and proposed rate schedules, RM provides
for a formula-based adjustment of the drought adder component, with an
annual increase of up to 2 mills per kilowatt-hour (kWh) each year. The
2 mills/kWh cap places a limit on the amount the drought adder
component can be adjusted upward relative to associated drought costs
included in the drought adder formula rate for any one-year cycle.
Continuing to identify the FES revenue requirement using base and
drought adder components will assist RM in the presentation of future
impacts of droughts, demonstrate repayment of drought-related costs in
the PRSs, and allow RM to be more responsive to changes caused by
drought-related expenses. RM will continue to charge and bill its
customers FES rates for energy and capacity, which are the sum of the
base and drought adder components.
A summary of the proposed charge components is shown in Table 3:
Table 3--Summary of Two-Step Proposal Charge Components
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Proposed charges under rate schedule L-F13 Proposed charges under rate schedule L-F13
first step as of Jan. 1, 2025 second step as of Jan. 1, 2026
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Drought adder Total charge Drought adder Total charge
Base component component \1\ \2\ Base component component \1\ \2\
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Firm Capacity ($/kilowatt-month)........................ $4.91 $0.31 $5.22 $5.47 $0.18 $5.65
Firm Energy (mills/kWh)................................. 18.72 1.20 19.92 20.86 0.69 21.55
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\1\ Proposed values are estimates that may change during the existing annual drought adder adjustment process.
\2\ Proposed values are estimates only based on using final base and estimated drought adder components.
Sale of Surplus Products
The Sale of Surplus Products rate schedule is formula-based,
providing for LAP Marketing to sell LAP surplus energy and capacity
products. If LAP surplus products are available, as specified in the
rate schedule, the charge will be based on market rates plus
administrative costs. The customer will be responsible for acquiring
transmission service necessary to deliver the product(s) for which a
separate charge may be incurred. The proposed Rate Schedule, L-M4,
continues to allow for the sale of energy, frequency response,
regulation, and reserves.
Legal Authority
Existing DOE procedures for public participation in power and
transmission rate adjustments (10 CFR part 903) were published on
September 18, 1985, and February 21, 2019.\2\ The proposed action is a
major rate adjustment, as defined by 10 CFR 903.2(d). In accordance
with 10 CFR 903.15(a) and 10 CFR 903.16(a), RM will hold public
information and public comment forums for this rate adjustment. RM will
review and consider all timely public comments at the conclusion of the
consultation and comment period and adjust the proposal as appropriate.
The rates will then be approved on an interim basis.
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\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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WAPA is establishing the formula rates for LAP in accordance with
section302 of the DOE Organization Act (42 U.S.C. 7152).\3\
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\3\ This Act transferred to, and vested in, the Secretary of
Energy the power marketing functions of the Secretary of the
Department of the Interior and Bureau of Reclamation (Reclamation)
under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as
amended and supplemented by subsequent laws, particularly section
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and
section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s); and
other acts that specifically apply to the projects involved.
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By Delegation Order No. S1-DEL-RATES-2016, effective November 19,
2016, the Secretary of Energy delegated: (1) the authority to develop
power and transmission rates to the WAPA Administrator; (2) the
authority to confirm, approve, and place such rates into effect on an
interim basis to the Deputy Secretary of Energy; and (3) the authority
to confirm, approve, and place into effect on a final basis, or to
remand or disapprove such rates to FERC. By Delegation Order No. S1-
DEL-S3-2023, effective April 10, 2023, the Secretary of Energy also
delegated the authority to confirm, approve, and place such rates into
effect on an interim basis to the Under Secretary for Infrastructure.
By
[[Page 53995]]
Redelegation Order No.S3-DEL-WAPA1-2023, 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 WAPA's Administrator.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that RM initiates or uses to develop the proposed formula
rates are available for inspection and copying at the Rocky Mountain
Regional Office located at 5555 East Crossroads Boulevard, Loveland,
Colorado. Many of these documents and supporting information are also
available on RM's website at: www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.
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
(NEPA) of 1969, as amended, 42 U.S.C. 4321-4347; the Council on
Environmental Quality Regulations for implementing NEPA (40 CFR
parts 1500-1508); and DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021).
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Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Signing Authority
This document of the Department of Energy was signed on June 24,
2024, by Tracey A. LeBeau, Administrator, Western Area Power
Administration, pursuant to delegated authority from the Secretary of
Energy. That document, with the original signature and date, is
maintained by DOE. For administrative purposes only, and in compliance
with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on June 25, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-14274 Filed 6-27-24; 8:45 am]
BILLING CODE 6450-01-P
