Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-213, 53989-53992 [2024-14275]
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Federal Register / Vol. 89, No. 125 / Friday, June 28, 2024 / Notices
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Authority: Presidential Executive
Order 14050.
Alexis Barrett,
Chief of Staff, Office of the Secretary.
[FR Doc. 2024–14340 Filed 6–27–24; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF ENERGY
Energy Information Administration
Agency Information Collection
Extension
U.S. Energy Information
Administration (EIA), U.S. Department
of Energy (DOE).
ACTION: Notice.
AGENCY:
EIA submitted an information
collection request for extension as
required by the Paperwork Reduction
Act of 1995. The information collection
requests a three-year extension, with
change, of its Form EIA–111 Quarterly
Electricity Imports and Exports Report,
OMB Control Number 1905–0208. Form
EIA–111 collects information on U.S.
imports and exports of electricity. Data
are used to obtain estimates on the flows
of electricity into and out of the United
States.
DATES: Comments on this information
collection must be received no later
than July 29, 2024. Written comments
and recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
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SUMMARY:
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for Public Comments’’ or by using the
search function.
FOR FURTHER INFORMATION CONTACT:
Glenn McGrath at (202) 586–4325 or by
email at Glenn.Mcgrath@eia.gov. The
form and instructions are available at
https://www.eia.gov/survey/changes/
electricity/.
SUPPLEMENTARY INFORMATION: This
information collection request contains:
(1) OMB No.: 1905–0208;
(2) Information Collection Request
Title: Quarterly Electricity Imports and
Exports Report;
(3) Type of Request: Three-year
extension with change;
(4) Purpose: Form EIA–111 collects
U.S. electricity import and export data
on a quarterly basis. The data are used
to measure the flow of electricity into
and out of the United States. The import
and export data are reported by U.S.
purchasers, sellers and transmitters of
wholesale electricity, including persons
authorized by Order to export electric
energy from the United States to foreign
countries, persons authorized by
Presidential Permit to construct,
operate, maintain, or connect electric
power transmission lines that cross the
U.S. international border, and U.S.
Balancing Authorities that are directly
interconnected with foreign Balancing
Authorities. Such entities report
monthly flows of electric energy
received or delivered across the border,
the cost associated with the
transactions, and actual and
implemented interchange.
(4a) Proposed Changes to Information
Collection: There is a reduction in the
number of survey respondents required
to file EIA–111 reports. This reduces the
annual estimated responses and
associated burden hours. There is no
change to the content collected on the
EIA–111.
(5) Annual Estimated Number of
Respondents: 153;
(6) Annual Estimated Number of
Total Responses: 612;
(7) Annual Estimated Number of
Burden Hours: 918;
(8) Annual Estimated Reporting and
Recordkeeping Cost Burden: $83,685
(918 burden hours times $91.16 per
hour). EIA estimates that respondents
will have no additional costs associated
with the surveys other than the burden
hours and the maintenance of the
information as part of the normal course
of business.
Comments are invited on whether or
not: (a) The proposed collection of
information is necessary for the proper
performance of agency functions,
including whether the information will
have a practical utility; (b) EIA’s
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53989
estimate of the burden of the proposed
collection of information, including the
validity of the methodology and
assumptions used, is accurate; (c) EIA
can improve the quality, utility, and
clarity of the information it will collect;
and (d) EIA can minimize the burden of
the collection of information on
respondents, such as automated
collection techniques or other forms of
information technology.
Statutory Authority: 15 U.S.C. 772(b),
42 U.S.C. 7101 et seq.
Signed in Washington, DC, on June 24,
2024.
Samson A. Adeshiyan
Director, Office of Statistical Methods and
Research, U.S. Energy Information
Administration.
[FR Doc. 2024–14248 Filed 6–27–24; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program—
Eastern Division—Rate Order No.
WAPA–213
Western Area Power
Administration, Department of Energy
(DOE).
ACTION: Notice of proposed firm power
service and sale of surplus products
formula rates.
AGENCY:
The Upper Great Plains (UGP)
region of the Western Area Power
Administration (WAPA) proposes
revised formula rates for the Pick-Sloan
Missouri Basin Program (P–SMBP)—
Eastern Division (ED) firm power, firm
peaking power service, and sale of
surplus products. The existing formula
rates for these services, under Rate
Schedules P–SED–F14 and P–SED–
FP14, and sale of surplus products,
under formula rate schedule P–SED–
M2, do not expire until December 31,
2027; however, the existing firm power
and firm peaking power service rates no
longer provide sufficient revenue 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–213 (WAPA–213) 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
SUMMARY:
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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.’’
UGP will present a detailed
explanation of the proposed P–SMBP—
ED formula rates and other
modifications at a public information
forum that will be held on August 7,
2024, at 8:30 MDT to no later than 10:30
MDT. UGP will also host a public
comment forum on August 7, 2024, at
11:00 MDT to no later than noon MDT.
The public information forum and the
public comment forum will only be
conducted virtually. Instructions for
participating in the forums will be
posted on UGP’s website at least 14 days
prior to the public information and
comment forums at: www.wapa.gov/
about-wapa/regions/ugp/ugp-rates/
2025-firm-rate-adjustment.
UGP will accept comments any time
during the consultation and comment
period.
Written comments and
requests to be informed of Federal
Energy Regulatory Commission (FERC)
actions concerning the proposed
formula rates submitted by UGP to
FERC for approval should be sent to:
Lloyd Linke, Regional Manager, Upper
Great Plains Region, Western Area
Power Administration, 2900 4th Avenue
North, 6th Floor, Billings, MT 59101–
1266, or email: ugpfirmrate@wapa.gov.
UGP will post information about the
proposed formula rates and written
comments received to its website at:
www.wapa.gov/about-wapa/regions/
ugp/ugp-rates/2025-firm-rateadjustment.
ADDRESSES:
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FOR FURTHER INFORMATION CONTACT:
Linda Cady-Hoffman, Rates Manager,
Upper Great Plains Region, Western
Area Power Administration, 2900 4th
Avenue North, 6th Floor, Billings, MT
59101–1266, telephone (406) 255–2920,
email cady@wapa.gov or ugpfirmrate@
wapa.gov.
On June
29, 2023, FERC confirmed and approved
Rate Schedules P–SED–F14, P–SED–
FP14, and P–SED–M2 under Rate Order
No. WAPA–203 (WAPA–203) on a final
SUPPLEMENTARY INFORMATION:
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basis through December 31, 2027.1
These schedules apply to firm power,
firm peaking power service, and the sale
of surplus products. UGP intends for the
proposed formula rates under P–SED–
F15, P–SED–FP15, and P–SED–M3 to go
into effect January 1, 2025. The
proposed formula rates 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 UGP’s
website at: www.wapa.gov/about-wapa/
regions/ugp/ugp-rates/2025-firm-rateadjustment.
Firm Power and Firm Peaking Power
Services
adjustment. For the base component, the
revenue requirements and associated
charges for each step would be set
values. For the drought adder
component, UGP is proposing estimated
revenue requirements based on the
USACE’s 2024 AOP and drought costs
projected in the Final FY 2023 PRS for
the first and second steps. UGP 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–213 and become effective
January 1, 2025. UGP will also inform
customers of updates by letter and post
updates to UGP’s external website.
A comparison of the current and
proposed revenue requirements is
shown in Table 1:
The P–SMBP FY 2023 Power
Repayment Study (PRS) revenue
requirement, changes to future
workplans, and projected water
conditions are the determining factors
for this proposed rate adjustment.
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–203 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–203. 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 P–
SMBP—ED revenue requirement. Under
Rate Schedules P–SED–F15 and P–SED–
FP15, UGP is proposing a two-step rate
1 Order Confirming and Approving Rate
Schedules on a Final Basis, FERC Docket No. EF23–
2–000, (2023).
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TABLE 1—SUMMARY OF CURRENT AND TWO-STEP PROPOSAL REVENUE REQUIREMENTS
Current
under
P–SED–F14
as of
Jan. 1, 2023
(in million $)
Firm power service
Total Revenue Requirement 1 ..............................................
Base Component .................................................................
Drought Adder Component 2 ................................................
1 Proposed
2 Proposed
Proposed
under
P–SED–F15
first step
as of
Jan. 1, 2025
(in million $)
$268.4
235.4
33.0
Proposed
under
P–SED–F15
second step
as of
Jan. 1, 2026
(in million $) 2
First step
percent
change
$288.1
264.5
23.6
7.4
12.4
¥28.5
$306.0
292.4
13.6
Second step
percent
change
6.2
10.5
¥42.4
values are estimates only based on using final base and estimated drought adder components.
values are estimates that may change during the existing annual drought adder adjustment process.
Under the current rate methodology,
rates for P–SMBP—ED firm power and
firm peaking power service 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 demand and energy.
A comparison of the current and
proposed rates is shown in Table 2:
TABLE 2—SUMMARY OF CURRENT AND TWO-STEP PROPOSAL RATES
P–SMBP—ED firm power service
Current under
P–SED–F14/
P–SED–FP14
as of
Jan. 1, 2023
Proposed
under
P–SED–F15/
P–SED–FP15
as of
Jan. 1, 2025 1
27.91
$6.20
15.27
$5.70
15.27
30.00
$6.60
16.55
$6.05
16.55
P–SMBP—ED Composite Rate (mills/kilowatt-hour) ...........
Firm Demand ($/kilowatt-month) .........................................
Firm Energy (mills/kilowatt-hour) .........................................
Firm Peaking Demand ($/kilowatt-month) ...........................
Firm Peaking Energy 2 (mills/kilowatt-hour) .........................
First step
percent
change
7.5
6.5
8.4
6.1
8.4
Proposed
under
P–SED–F15/
P–SED–FP15
as of
Jan. 1, 2026 1
Second step
percent
change
31.87
$7.00
17.60
$6.40
17.60
6.2
6.1
6.3
5.8
6.3
1 Proposed
2 Firm
values are estimates only based on using final base and estimated drought adder components.
Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not returned.
adder formula rate for any one-year
cycle. Continuing to identify the firm
power service revenue requirement
using base and drought adder
components will assist UGP in the
presentation of future impacts of
droughts, demonstrate repayment of
drought-related costs in the PRS, and
allow UGP to be more responsive to
changes caused by drought-related
As a part of the current and proposed
rate schedules, UGP provides for a
formula-based adjustment of the
drought adder component, with an
annual increase of up to 2 mills per
kilowatt-hour (kWh). The 2 mills/kWh
cap places a limit on the amount the
drought adder component can be
adjusted upward relative to associated
drought costs included in the drought
expenses. UGP will continue to charge
and bill its customers firm power and
firm peaking power service rates for
energy and demand, which are the sum
of the base and drought adder
components.
A summary of the proposed charge
components is shown in Table 3:
TABLE 3—SUMMARY OF P–SMBP—ED TWO-STEP PROPOSAL CHARGE COMPONENTS
Proposed charges under rate schedules
P–SED–F15 and P–SED–FP15 first step
as of January 1, 2025
Base
component
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Firm Demand ($/kilowatt-month) .............
Firm Energy (mills/kWh) ..........................
Firm Peaking Demand ($/kilowatt-month)
Firm Peaking Energy 3 .............................
(mills/kWh) ...............................................
Drought adder
component 1
Total
charge 2
Proposed charges under rate schedules
P–SED–F15 and P–SED–FP15 second step
as of January 1, 2026
Base
component
Drought adder
component 1
Total
charge 2
$6.05
15.21
$5.55
$0.55
1.34
$0.50
$6.60
16.55
$6.05
$6.70
16.80
$6.10
$0.30
0.80
$0.30
$7.00
17.60
$6.40
15.21
1.34
16.55
16.80
0.80
17.60
1 Proposed
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.
peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.
2 Proposed
3 Firm
Sale of Surplus Products
The Sale of Surplus Products rate
schedule is formula-based, providing for
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P–SMBP—ED Marketing to sell P–
SMBP—ED surplus energy and demand
products. If P–SMBP—ED surplus
products are available, as specified in
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the rate schedule, the charge will be
based on market rates plus
administrative costs. The customer will
be responsible for acquiring
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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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]]>Agencies
[Federal Register Volume 89, Number 125 (Friday, June 28, 2024)]
[Notices]
[Pages 53989-53992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14275]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program--Eastern Division--Rate Order
No. WAPA-213
AGENCY: Western Area Power Administration, Department of Energy (DOE).
ACTION: Notice of proposed firm power service and sale of surplus
products formula rates.
-----------------------------------------------------------------------
SUMMARY: The Upper Great Plains (UGP) region of the Western Area Power
Administration (WAPA) proposes revised formula rates for the Pick-Sloan
Missouri Basin Program (P-SMBP)--Eastern Division (ED) firm power, firm
peaking power service, and sale of surplus products. The existing
formula rates for these services, under Rate Schedules P-SED-F14 and P-
SED-FP14, and sale of surplus products, under formula rate schedule P-
SED-M2, do not expire until December 31, 2027; however, the existing
firm power and firm peaking power service rates no longer provide
sufficient revenue 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-213 (WAPA-213) 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
[[Page 53990]]
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.''
UGP will present a detailed explanation of the proposed P-SMBP--ED
formula rates and other modifications at a public information forum
that will be held on August 7, 2024, at 8:30 MDT to no later than 10:30
MDT. UGP will also host a public comment forum on August 7, 2024, at
11:00 MDT to no later than noon MDT. The public information forum and
the public comment forum will only be conducted virtually. Instructions
for participating in the forums will be posted on UGP's website at
least 14 days prior to the public information and comment forums at:
www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
UGP 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 UGP to FERC for approval should be sent to:
Lloyd Linke, Regional Manager, Upper Great Plains Region, Western Area
Power Administration, 2900 4th Avenue North, 6th Floor, Billings, MT
59101-1266, or email: [email protected]. UGP will post information
about the proposed formula rates and written comments received to its
website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
FOR FURTHER INFORMATION CONTACT: Linda Cady-Hoffman, Rates Manager,
Upper Great Plains Region, Western Area Power Administration, 2900 4th
Avenue North, 6th Floor, Billings, MT 59101-1266, telephone (406) 255-
2920, email [email protected] or [email protected].
SUPPLEMENTARY INFORMATION: On June 29, 2023, FERC confirmed and
approved Rate Schedules P-SED-F14, P-SED-FP14, and P-SED-M2 under Rate
Order No. WAPA-203 (WAPA-203) on a final basis through December 31,
2027.\1\ These schedules apply to firm power, firm peaking power
service, and the sale of surplus products. UGP intends for the proposed
formula rates under P-SED-F15, P-SED-FP15, and P-SED-M3 to go into
effect January 1, 2025. The proposed formula rates 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. EF23-2-000, (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 UGP's website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
Firm Power and Firm Peaking Power Services
The P-SMBP FY 2023 Power Repayment Study (PRS) revenue requirement,
changes to future workplans, and projected water conditions are the
determining factors for this proposed rate adjustment.
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-203 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-203.
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 P-SMBP--ED revenue
requirement. Under Rate Schedules P-SED-F15 and P-SED-FP15, UGP 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, UGP is proposing estimated
revenue requirements based on the USACE's 2024 AOP and drought costs
projected in the Final FY 2023 PRS for the first and second steps. UGP
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-213 and become effective
January 1, 2025. UGP will also inform customers of updates by letter
and post updates to UGP's external website.
A comparison of the current and proposed revenue requirements is
shown in Table 1:
[[Page 53991]]
Table 1--Summary of Current and Two-Step Proposal Revenue Requirements
----------------------------------------------------------------------------------------------------------------
Proposed under
Current under Proposed under P-SED-F15
P-SED-F14 as P-SED-F15 First step second step as Second step
Firm power service of Jan. 1, first step as percent change of Jan. 1, percent change
2023 (in of Jan. 1, 2026 (in
million $) 2025 (in million $) \2\
----------------------------------------------------million $)--------------------------------------------------
Total Revenue Requirement \1\... $268.4 $288.1 7.4 $306.0 6.2
Base Component.................. 235.4 264.5 12.4 292.4 10.5
Drought Adder Component \2\..... 33.0 23.6 -28.5 13.6 -42.4
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\1\ Proposed values are estimates only based on using final base and estimated drought adder components.
\2\ Proposed values are estimates that may change during the existing annual drought adder adjustment process.
Under the current rate methodology, rates for P-SMBP--ED firm power
and firm peaking power service are designed to recover an annual
revenue requirement that includes investment repayment, interest,
purchase power, OM&R, and other expenses within the allowable period.
The annual revenue requirement continues to be allocated equally
between demand and energy.
A comparison of the current and proposed rates is shown in Table 2:
Table 2--Summary of Current and Two-Step Proposal Rates
----------------------------------------------------------------------------------------------------------------
Proposed under Proposed under
Current under P-SED-F15/ P- P-SED-F15/ P-
P-SMBP--ED firm power service P-SED-F14/ P- SED-FP15 as of First step SED-FP15 as of Second step
SED-FP14 as of Jan. 1, 2025 percent change Jan. 1, 2026 percent change
Jan. 1, 2023 \1\ \1\
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P-SMBP--ED Composite Rate (mills/ 27.91 30.00 7.5 31.87 6.2
kilowatt-hour).................
Firm Demand ($/kilowatt-month).. $6.20 $6.60 6.5 $7.00 6.1
Firm Energy (mills/kilowatt- 15.27 16.55 8.4 17.60 6.3
hour)..........................
Firm Peaking Demand ($/kilowatt- $5.70 $6.05 6.1 $6.40 5.8
month).........................
Firm Peaking Energy \2\ (mills/ 15.27 16.55 8.4 17.60 6.3
kilowatt-hour).................
----------------------------------------------------------------------------------------------------------------
\1\ Proposed values are estimates only based on using final base and estimated drought adder components.
\2\ Firm Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is
not returned.
As a part of the current and proposed rate schedules, UGP provides
for a formula-based adjustment of the drought adder component, with an
annual increase of up to 2 mills per kilowatt-hour (kWh). 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 firm power service revenue requirement using base and
drought adder components will assist UGP in the presentation of future
impacts of droughts, demonstrate repayment of drought-related costs in
the PRS, and allow UGP to be more responsive to changes caused by
drought-related expenses. UGP will continue to charge and bill its
customers firm power and firm peaking power service rates for energy
and demand, 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 P-SMBP--ED Two-Step Proposal Charge Components
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proposed charges under rate schedules P-SED- Proposed charges under rate schedules P-SED-
F15 and P-SED-FP15 first step as of January 1, F15 and P-SED-FP15 second step as of January
----------------------2025-------------------------------------------1, 2026-------------------
Drought adder Total charge Drought adder Total charge
Base component component \1\ \2\ Base component component \1\ \2\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Firm Demand ($/kilowatt-month).......................... $6.05 $0.55 $6.60 $6.70 $0.30 $7.00
Firm Energy (mills/kWh)................................. 15.21 1.34 16.55 16.80 0.80 17.60
Firm Peaking Demand ($/kilowatt-month).................. $5.55 $0.50 $6.05 $6.10 $0.30 $6.40
Firm Peaking Energy \3\................................. 15.21 1.34 16.55 16.80 0.80 17.60
(mills/kWh).............................................
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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.
\3\ Firm peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.
Sale of Surplus Products
The Sale of Surplus Products rate schedule is formula-based,
providing for P-SMBP--ED Marketing to sell P-SMBP--ED surplus energy
and demand products. If P-SMBP--ED 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
[[Page 53992]]
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
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.
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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 P-SMPB--ED 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 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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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.
Availability of Information
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-rate-adjustment.
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. 2024-14275 Filed 6-27-24; 8:45 am]
BILLING CODE 6450-01-P
