Integrated System Power Rates, 88997-88999 [2024-26144]
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Federal Register / Vol. 89, No. 218 / Tuesday, November 12, 2024 / Notices
such as orders, notices, and
rulemakings.
Public sessions or site visits will be
posted on the Commission’s calendar
located at https://www.ferc.gov/newsevents/events along with other related
information.
Dated: November 5, 2024.
Debbie-Anne A. Reese,
Secretary.
[FR Doc. 2024–26140 Filed 11–8–24; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates
Southwestern Power
Administration, DOE.
ACTION: Notice of proposed rate.
AGENCY:
Southwestern Power
Administration (Southwestern)
proposes to revise the existing
Integrated System rate schedules to
meet the identified average annual
revenue need of $237,821,129, an
increase of $44,230,649 (22.8 percent),
effective April 1, 2025, through
September 30, 2027. Interested persons
may review the proposed rate and
supporting studies on Southwestern’s
website, request to participate in a
public forum, and submit comments.
Southwestern will evaluate all
comments received in this process.
DATES: A consultation and comment
period will begin November 12, 2024
and end February 10, 2025. Written
comments are due on or before February
10, 2025. If requested, a public
information and comment forum
(Forum) will be held on December 18,
2024, at 9:00 a.m. to no later than 12:00
p.m. Central Standard Time (CST). The
Forum will be conducted via Microsoft
Teams. Persons desiring to attend the
Forum should notify Southwestern by
December 11, 2024, at 11:59 p.m. CST,
so that a list of Forum participants can
be prepared. Requests to attend the
Forum should be sent via email to
swparates@swpa.gov should include the
individual’s name, address, phone
number, entity (if any) they represent,
and email address. Persons desiring to
speak at the Forum should specify this
in their notification to Southwestern;
others may speak if time permits.
If Southwestern does not receive a
request for a Forum, the Forum will not
be held. If a Forum is requested, the
Microsoft Teams meeting information
will be posted to Southwestern’s
website.
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
16:35 Nov 08, 2024
Jkt 265001
Written comments should
be submitted to: Fritha Ohlson, Senior
Vice President, Chief Operating Officer,
Office of Corporate Operations,
Southwestern Power Administration,
U.S. Department of Energy, One West
Third Street, Tulsa, Oklahoma 74103 or
emailed to swparates@swpa.gov.
FOR FURTHER INFORMATION CONTACT:
Ashley Corker, Director, Division of
Resources and Rates, Southwestern
Power Administration, U.S. Department
of Energy, One West Third Street, Tulsa,
Oklahoma 74103, (918) 595–6682,
ashley.corker@swpa.gov.
SUPPLEMENTARY INFORMATION:
Southwestern markets power from 24
multi-purpose reservoir projects with
hydroelectric power facilities
constructed and operated by the Corps.
These projects are located in Arkansas,
Missouri, Oklahoma, and Texas.
Southwestern’s marketing area includes
these states plus Kansas and Louisiana.
The costs associated with 22 of these 24
hydropower projects are repaid with
revenues received under the Integrated
System rates. These rates also cover the
costs of Southwestern’s transmission
facilities that consist of 1,381 miles of
high-voltage transmission lines, 27
substations, and 46 microwave and VHF
radio sites.
On September 30, 2013, the Deputy
Secretary of Energy, via Rate Order No.
SWPA–66, placed Southwestern’s
Integrated System rate schedules (P–13,
NFTS–13, and EE–13) into effect until
September 30, 2017. Subsequently, rate
schedule NFTS–13 was renamed to
NFTS–13A and rate schedule P–13 was
renamed to P–13A and then later to P–
13B, in each case with no revenue
adjustment.1 Additionally, all three rate
schedules have been extended with no
revenue adjustment.2 Most recently, the
Southwestern Administrator extended
rate schedules P–13B, NFTS–13A, and
EE–13, via Rate Order No. SWPA–85,
through September 30, 2025.
The guidelines for preparation of
power repayment studies are included
in DOE Order No. RA 6120.2, ‘‘Power
Marketing Administration Financial
Reporting.’’ In simple terms, the rate
process works as follows. First,
Southwestern conducts a Power
Repayment Study to determine whether
its current revenues are sufficient for
Southwestern to meet its repayment
obligations. If a revenue shortfall (or
surplus) is indicated, Southwestern
conducts a revised Power Repayment
ADDRESSES:
1 Rate Order Nos. SWPA–71 (January 1, 2017),
SWPA–73 (July 15, 2017), SWPA–80 (July 15, 2023)
2 Rate Order Nos. SWPA–72 (September 13,
2017), SWPA–74 (September 22, 2019), SWPA–77
(August 30, 2021), SWPA–81 (September 20, 2023).
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88997
Study to determine the level of revenue
needed. If the revenue change needed to
meet Southwestern’s repayment
obligations is within a small margin of
Agency discretion, Southwestern will
finalize the Power Repayment Studies
for that year and Southwestern’s rates
will not be adjusted. This is what
occurred annually for Southwestern’s
Integrated System Rates from 2013 until
2023.
If, however, Southwestern’s annual
Power Repayment Studies indicate a
revenue shortfall (or surplus) outside of
that small margin of Agency discretion,
Southwestern must then engage in a
Rate Design Study to inform the
Administrator as to what the new
proposed rates should be in order to
generate the needed revenue. This is
what occurred in 2023.
Unlike previous years, Southwestern’s
2023 Power Repayment Studies
indicated the need for a revenue
increase that was substantial enough to
impact Southwestern’s ability to meet
its repayment obligations. The 2023
Power Repayment Studies indicated the
need for an increase of $44,230,649 in
average annual revenue. Southwestern
then engaged in a Rate Design Study to
develop rates necessary to generate this
additional revenue. The resulting rates
are described in the chart.
Part of the total additional revenue
identified by the Power Repayment
Studies is a need to increase revenues
specifically for purchased power and
wheeling. The Purchased Power &
Wheeling Adder (PPWA) produces
revenues which are segregated to cover
the cost of power purchased to meet
contractual obligations. The PPWA is
established to reflect revenues required
to meet Southwestern’s purchased
power and wheeling needs on an
average annual basis. The PPWA rate
will increase to reflect the increasing
average cost of purchasing power over
the period as well as the cost of firm
transmission to wheel power and energy
from two projects, Blakely Mountain
and DeGray, from MISO into
Southwestern’s system. Revenue from
the sale of excess energy from Blakely
Mountain and DeGray will offset the
increase in purchased power and
wheeling cost. The Administrator’s
authority to adjust the PPWA at her or
his discretion with the Purchased Power
& Wheeling Adder Adjustment
(PPWAA) will remain in force.3 The
PPWAA is limited to two adjustments
per year not to exceed a total of ±8.7
mills per kilowatt-hour per year. The
PPWA will increase to $0.0087 per
kilowatt-hour and the PPWAA will
3 See
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138 FERC ¶ 62,199 (2012).
12NON1
88998
Federal Register / Vol. 89, No. 218 / Tuesday, November 12, 2024 / Notices
decrease to $0.00 per kilowatt-hour
when the proposed rate schedules take
effect.
Additionally, the Capacity Overrun
and Energy Overrun penalties in the
proposed Hydro Peaking Power rate
schedule have been updated to be
formula rates, which are the greater of
the penalties as included in P–13B, or
the applicable day-ahead locational
marginal price. This change is to ensure
that penalties are sufficient to cover the
financial impact of unauthorized
capacity and energy overruns. The
Excess Energy rate schedule has also
been converted to a formula rate based
on the applicable market rates at the
time of sale, rather than a set rate as in
EE–13. Like EE–13, the proposed Excess
Energy rate schedule does not include a
transmission component, as
transmission service will be the sole
responsibility of the entity purchasing
excess energy.
Below is a comparison of the existing
and proposed Integrated System rates:
Existing
Proposed
P–13B
P–23
Change
Dollars
I
Percent
Hydro Peaking Power
Energy:
Peaking Energy .................................................................
Supplemental Peaking Energy ..........................................
Purchased Power & Wheeling ..........................................
Administrator’s Discretionary Adder Adjustment—Annual
Limit.
Capacity:
Grid or 138–161 kV ...........................................................
Regulation & Frequency Response ..................................
Operational Reserves—Spinning ......................................
Operational Reserves—Supplemental ..............................
Energy Imbalance .............................................................
Regulation Purchased Adder (load within SWPA BAA) ...
Transformation Service 69 kV & less (applied to usage,
not reservation).
$0.0094 /kWh ................
$0.0094 /kWh ................
$0.0059 /kWh ................
+/¥$0.0059 /kWh .........
$0.0128 /kWh ................
$0.0128 /kWh ................
$0.0087 /kWh ................
+/¥$0.0087 /kWh .........
$0.0034
0.0034
0.0028
0.0028
36.2
36.2
47.5
47.5
$4.50 /kW/Mo ................
$0.07 /kW/Mo ................
$0.0146 /kW/Mo ............
$0.0146 /kW/Mo ............
$0.0 /kW/Mo ..................
prorated share of total
energy cost.
$0.46 /kW/Mo ................
$5.30 /kW/Mo ................
$0.0208 /kW/Mo ............
$0.0208 /kW/Mo ............
$0.0208 /kW/Mo ............
$0.0 /kW/Mo ..................
prorated share of total
energy cost.
$0.86 /kW/Mo ................
0.80
(0.0492)
0.0062
0.0062
0.0
N/A
17.8
¥70.3
42.5
42.5
0.0
N/A
0.4000
87.0
Non-Federal Transmission & Interconnection Facilities Service
Firm Point-to-Point Capacity ....................................................
Non-Firm Point-to-Point Capacity (80 percent of Firm Pointto-Point).
Network Integration ..................................................................
Interconnection Facilities ..........................................................
Transformation Service 69 kV & less (applied to usage, not
reservation).
Scheduling, System Control, & Dispatch .................................
Reactive Supply & Voltage Control ..........................................
Regulation & Frequency Response .........................................
Operational Reserves—Spinning .............................................
Operational Reserves—Supplemental .....................................
Energy Imbalance .....................................................................
Regulation Purchased Adder (load within SWPA BAA) ..........
NFTS–13A
NFS–23
Dollars
Percent
$1.48 /kW/Mo ................
$1.184 /kW/Mo ..............
$1.15 /kW/Mo ................
$0.92 /kW/Mo ................
($0.33)
(0.26)
¥22.3
¥22.3
$1.48 /kW/Mo ................
$1.48 /kW/Mo ................
$0.46 /kW/Mo ................
$1.15 /kW/Mo ................
$1.15 /kW/Mo ................
$0.86 /kW/Mo ................
(0.33)
(0.33)
0.40
¥22.3
¥22.3
87.0
$0.09 /kW/Mo ................
$0.04 /kW/Mo ................
$0.07 /kW/Mo ................
$0.0146 /kW/Mo ............
$0.0146 /kW/Mo ............
$0.0 /kW/Mo ..................
prorated share of total
energy cost.
$0.17 /kW/Mo ................
$0.10 /kW/Mo ................
$0.0208 /kW/Mo ............
$0.0208 /kW/Mo ............
$0.0208 /kW/Mo ............
$0.0 /kW/Mo ..................
prorated share of total
energy cost.
0.08
0.06
(0.0492)
0.0062
0.0062
0.0
N/A
88.9
150.0
¥70.3
42.5
42.5
0.0
N/A
Excess Energy
Excess Energy ..........................................................................
khammond on DSKJM1Z7X2PROD with NOTICES
Public Participation
The procedures for public
participation are found at title 10, part
903, subpart A of the Code of Federal
Regulations (10 CFR part 903). This
proposed action is considered a ‘‘Major
Rate Adjustment,’’ as defined by 10 CFR
903.2(d). As such, in accordance with
10 CFR 903.14, the public consultation
and comment period is 90 days. In
accordance with 10 CFR 903.15(a) and
903.16(a), Southwestern will hold a
Forum for this proposed rate adjustment
VerDate Sep<11>2014
16:35 Nov 08, 2024
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EE–13
EE–23
$0.0094 /kWh ................
formula rate ...................
if requested. Southwestern will review
and consider all timely public
comments at the conclusion of the
consultation and comment period and
adjust the proposal as appropriate. The
Integrated System rate schedules will
then be approved on an interim basis.
Legal Authority
By Delegation Order No. S1–DEL–
RATES–2016, effective November 19,
2016, the Secretary of Energy delegated:
(1) the authority to develop power and
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Dollars
N/A
Percent
N/A
transmission rates to Southwestern’s
Administrator; (2) the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the
authority to confirm, approve, and place
into effect on a final basis, or to remand
or disapprove such rates, to FERC. By
Delegation Order No. S1–DEL–S3–2024,
effective August 30, 2024, the Secretary
of Energy also delegated the authority to
confirm, approve, and place such rates
into effect on an interim basis to the
E:\FR\FM\12NON1.SGM
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Federal Register / Vol. 89, No. 218 / Tuesday, November 12, 2024 / Notices
Under Secretary for Infrastructure. By
Redelegation Order No. S3–DEL–
SWPA1–2023, effective April 10, 2023,
the Under Secretary for Infrastructure
redelegated the authority to confirm,
approve, and place such rates into effect
on an interim basis to the
Administrator, Southwestern.
Availability of Information
Environmental Impact
Southwestern 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
Southwestern 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 November 6,
2024, by Mike Wech, Administrator for
Southwestern Power Administration,
pursuant to delegated authority from the
Secretary of Energy. That document,
with the original signature and date, is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
DOE. This administrative process in no
way alters the legal effect of this
4 In compliance with the National Environmental
Policy Act (NEPA) of 1969, as amended, 42 U.S.C.
4321 through 4347; the Council on Environmental
Quality Regulations for implementing NEPA (40
CFR parts 1500 through 1508); and DOE NEPA
Implementing Procedures and Guidelines (10 CFR
part 1021)
16:35 Nov 08, 2024
Signed in Washington, DC, on November 6,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2024–26144 Filed 11–8–24; 8:45 am]
BILLING CODE 6450–01–P
The 2023 Integrated System Power
Repayment Studies and the associated
Rate Design Study as well as the
proposed Integrated System rate
schedules are available on
Southwestern’s website at: https://
www.energy.gov/swpa/rate-scheduleactions. At the conclusion of the
consultation and comment period,
Southwestern will post all comments
received at the same website location. If
a Forum is held, the transcript of the
Forum and any other documents
introduced during the Forum will also
be made available on Southwestern’s
website.
VerDate Sep<11>2014
document upon publication in the
Federal Register.
Jkt 265001
DEPARTMENT OF ENERGY
Western Area Power Administration
Final 2028 Parker-Davis Project Power
Marketing Plan and Call for Resource
Pool Applications
Western Area Power
Administration, Department of Energy
(DOE).
ACTION: Notice of final plan and call for
resource pool applications.
AGENCY:
The Department of Energy
(DOE), Western Area Power
Administration (WAPA), Desert
Southwest Region (DSW), announces its
Final 2028 Parker-Davis Project (P–DP)
Power Marketing Plan (Final 2028 Plan)
and issues a Call for Resource Pool
Applications. This notice responds to
comments received on the Proposed
2028 P–DP Power Marketing Plan
(Proposed 2028 Plan). The Final 2028
Plan specifies the terms and conditions
under which WAPA will market power
from P–DP from October 1, 2028,
through September 30, 2048. WAPA
will offer new contracts for the sale of
power to existing contractors and create
a resource pool for potential new
applicants. Entities who wish to apply
for a new allocation of power from
WAPA, and who meet the criteria
defined in the Final 2028 Plan, must
submit a formal application using the
Applicant Profile Data (APD) form and
must meet the Eligibility Criteria and
Allocation Criteria described herein.
The General Criteria and Contract
Principles set forth in the Final 2028
Plan will apply to new allottees and
existing contractors. This Final 2028
Plan supersedes all previous marketing
plans for P–DP.
DATES: The Final 2028 Plan will become
effective December 12, 2024 to make
power allocations and complete the
other processes necessary to begin
providing service on October 1, 2028.
Resource pool applications must be
received on or before 5:00 p.m.,
Mountain Standard Time (MST), on
January 31, 2025. WAPA will accept
applications using the APD form by
email or by certified mail (or its
equivalent). Applications sent by
SUMMARY:
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88999
regular mail will be accepted if
postmarked before January 31, 2025,
and received no later than February 5,
2025. WAPA will not consider
applications unless they are received by
the prescribed dates.
ADDRESSES: Preference entities
interested in applying for an allocation
of WAPA power may complete the APD
form available at https://www.wapa.gov/
about-wapa/regions/dsw/
pdpremarketing/ and mail the signed
and dated APD form to Ms. Jennifer
Henn, Power Marketing Advisor, Desert
Southwest Region, Western Area Power
Administration, P.O. Box 6457,
Phoenix, AZ 85005–6457. APD
application forms with an electronic
signature (e-signature) may be emailed
to pdp-remarketing@wapa.gov. If an
electronic signature is not available, the
signed APD form may be scanned and
emailed to the address above, faxed to
(602) 605–4663, or mailed it to the
address above. All APD forms must be
received by WAPA within the time
required in the DATES section, herein.
WAPA will publish a notice of Proposed
2028 Allocations in the Federal Register
after evaluating all applications.
FOR FURTHER INFORMATION CONTACT:
Jennifer Henn, Power Marketing
Advisor, Desert Southwest Region,
Western Area Power Administration,
(602) 605–2572 or email: pdpremarketing@wapa.gov. Information on
development of the Final 2028 Plan can
be found at https://www.wapa.gov/
about-wapa/regions/dsw/
pdpremarketing/.
SUPPLEMENTARY INFORMATION:
Development of the Final 2028 Plan
P–DP power facilities include Davis
Dam, with its current total operating
capacity of 255,000 kilowatts (kW) for
P–DP and expected increase of
approximately 3,750 kW from the
rewind of Unit 3, and Parker Dam, with
60,000 kW of operating capacity allotted
to P–DP and 60,000 kW allotted to
Metropolitan Water District of Southern
California. Both dams are owned and
operated by the Bureau of Reclamation
(Reclamation). WAPA owns and
operates approximately 1,500 miles of
high voltage transmission lines and 45
substations throughout Arizona,
California, and Nevada to facilitate
delivery of P–DP power in those three
states.
On September 30, 2028, WAPA’s
existing long-term sales contracts for P–
DP power will expire. WAPA began
developing the Final 2028 Plan with a
series of informal public information
meetings for existing and new potential
contractors. These meetings helped
E:\FR\FM\12NON1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 218 (Tuesday, November 12, 2024)]
[Notices]
[Pages 88997-88999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26144]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Power Rates
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of proposed rate.
-----------------------------------------------------------------------
SUMMARY: Southwestern Power Administration (Southwestern) proposes to
revise the existing Integrated System rate schedules to meet the
identified average annual revenue need of $237,821,129, an increase of
$44,230,649 (22.8 percent), effective April 1, 2025, through September
30, 2027. Interested persons may review the proposed rate and
supporting studies on Southwestern's website, request to participate in
a public forum, and submit comments. Southwestern will evaluate all
comments received in this process.
DATES: A consultation and comment period will begin November 12, 2024
and end February 10, 2025. Written comments are due on or before
February 10, 2025. If requested, a public information and comment forum
(Forum) will be held on December 18, 2024, at 9:00 a.m. to no later
than 12:00 p.m. Central Standard Time (CST). The Forum will be
conducted via Microsoft Teams. Persons desiring to attend the Forum
should notify Southwestern by December 11, 2024, at 11:59 p.m. CST, so
that a list of Forum participants can be prepared. Requests to attend
the Forum should be sent via email to [email protected] should include
the individual's name, address, phone number, entity (if any) they
represent, and email address. Persons desiring to speak at the Forum
should specify this in their notification to Southwestern; others may
speak if time permits.
If Southwestern does not receive a request for a Forum, the Forum
will not be held. If a Forum is requested, the Microsoft Teams meeting
information will be posted to Southwestern's website.
ADDRESSES: Written comments should be submitted to: Fritha Ohlson,
Senior Vice President, Chief Operating Officer, Office of Corporate
Operations, Southwestern Power Administration, U.S. Department of
Energy, One West Third Street, Tulsa, Oklahoma 74103 or emailed to
[email protected].
FOR FURTHER INFORMATION CONTACT: Ashley Corker, Director, Division of
Resources and Rates, Southwestern Power Administration, U.S. Department
of Energy, One West Third Street, Tulsa, Oklahoma 74103, (918) 595-
6682, [email protected].
SUPPLEMENTARY INFORMATION: Southwestern markets power from 24 multi-
purpose reservoir projects with hydroelectric power facilities
constructed and operated by the Corps. These projects are located in
Arkansas, Missouri, Oklahoma, and Texas. Southwestern's marketing area
includes these states plus Kansas and Louisiana. The costs associated
with 22 of these 24 hydropower projects are repaid with revenues
received under the Integrated System rates. These rates also cover the
costs of Southwestern's transmission facilities that consist of 1,381
miles of high-voltage transmission lines, 27 substations, and 46
microwave and VHF radio sites.
On September 30, 2013, the Deputy Secretary of Energy, via Rate
Order No. SWPA-66, placed Southwestern's Integrated System rate
schedules (P-13, NFTS-13, and EE-13) into effect until September 30,
2017. Subsequently, rate schedule NFTS-13 was renamed to NFTS-13A and
rate schedule P-13 was renamed to P-13A and then later to P-13B, in
each case with no revenue adjustment.\1\ Additionally, all three rate
schedules have been extended with no revenue adjustment.\2\ Most
recently, the Southwestern Administrator extended rate schedules P-13B,
NFTS-13A, and EE-13, via Rate Order No. SWPA-85, through September 30,
2025.
---------------------------------------------------------------------------
\1\ Rate Order Nos. SWPA-71 (January 1, 2017), SWPA-73 (July 15,
2017), SWPA-80 (July 15, 2023)
\2\ Rate Order Nos. SWPA-72 (September 13, 2017), SWPA-74
(September 22, 2019), SWPA-77 (August 30, 2021), SWPA-81 (September
20, 2023).
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The guidelines for preparation of power repayment studies are
included in DOE Order No. RA 6120.2, ``Power Marketing Administration
Financial Reporting.'' In simple terms, the rate process works as
follows. First, Southwestern conducts a Power Repayment Study to
determine whether its current revenues are sufficient for Southwestern
to meet its repayment obligations. If a revenue shortfall (or surplus)
is indicated, Southwestern conducts a revised Power Repayment Study to
determine the level of revenue needed. If the revenue change needed to
meet Southwestern's repayment obligations is within a small margin of
Agency discretion, Southwestern will finalize the Power Repayment
Studies for that year and Southwestern's rates will not be adjusted.
This is what occurred annually for Southwestern's Integrated System
Rates from 2013 until 2023.
If, however, Southwestern's annual Power Repayment Studies indicate
a revenue shortfall (or surplus) outside of that small margin of Agency
discretion, Southwestern must then engage in a Rate Design Study to
inform the Administrator as to what the new proposed rates should be in
order to generate the needed revenue. This is what occurred in 2023.
Unlike previous years, Southwestern's 2023 Power Repayment Studies
indicated the need for a revenue increase that was substantial enough
to impact Southwestern's ability to meet its repayment obligations. The
2023 Power Repayment Studies indicated the need for an increase of
$44,230,649 in average annual revenue. Southwestern then engaged in a
Rate Design Study to develop rates necessary to generate this
additional revenue. The resulting rates are described in the chart.
Part of the total additional revenue identified by the Power
Repayment Studies is a need to increase revenues specifically for
purchased power and wheeling. The Purchased Power & Wheeling Adder
(PPWA) produces revenues which are segregated to cover the cost of
power purchased to meet contractual obligations. The PPWA is
established to reflect revenues required to meet Southwestern's
purchased power and wheeling needs on an average annual basis. The PPWA
rate will increase to reflect the increasing average cost of purchasing
power over the period as well as the cost of firm transmission to wheel
power and energy from two projects, Blakely Mountain and DeGray, from
MISO into Southwestern's system. Revenue from the sale of excess energy
from Blakely Mountain and DeGray will offset the increase in purchased
power and wheeling cost. The Administrator's authority to adjust the
PPWA at her or his discretion with the Purchased Power & Wheeling Adder
Adjustment (PPWAA) will remain in force.\3\ The PPWAA is limited to two
adjustments per year not to exceed a total of 8.7 mills per
kilowatt-hour per year. The PPWA will increase to $0.0087 per kilowatt-
hour and the PPWAA will
[[Page 88998]]
decrease to $0.00 per kilowatt-hour when the proposed rate schedules
take effect.
---------------------------------------------------------------------------
\3\ See 138 FERC ] 62,199 (2012).
---------------------------------------------------------------------------
Additionally, the Capacity Overrun and Energy Overrun penalties in
the proposed Hydro Peaking Power rate schedule have been updated to be
formula rates, which are the greater of the penalties as included in P-
13B, or the applicable day-ahead locational marginal price. This change
is to ensure that penalties are sufficient to cover the financial
impact of unauthorized capacity and energy overruns. The Excess Energy
rate schedule has also been converted to a formula rate based on the
applicable market rates at the time of sale, rather than a set rate as
in EE-13. Like EE-13, the proposed Excess Energy rate schedule does not
include a transmission component, as transmission service will be the
sole responsibility of the entity purchasing excess energy.
Below is a comparison of the existing and proposed Integrated
System rates:
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Existing Proposed Change
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P-13B P-23 Dollars Percent
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Hydro Peaking Power
----------------------------------------------------------------------------------------------------------------
Energy:
Peaking Energy.................. $0.0094 /kWh........... $0.0128 /kWh........... $0.0034 36.2
Supplemental Peaking Energy..... $0.0094 /kWh........... $0.0128 /kWh........... 0.0034 36.2
Purchased Power & Wheeling...... $0.0059 /kWh........... $0.0087 /kWh........... 0.0028 47.5
Administrator's Discretionary +/-$0.0059 /kWh........ +/-$0.0087 /kWh........ 0.0028 47.5
Adder Adjustment--Annual Limit.
Capacity:
Grid or 138-161 kV.............. $4.50 /kW/Mo........... $5.30 /kW/Mo........... 0.80 17.8
Regulation & Frequency Response. $0.07 /kW/Mo........... $0.0208 /kW/Mo......... (0.0492) -70.3
Operational Reserves--Spinning.. $0.0146 /kW/Mo......... $0.0208 /kW/Mo......... 0.0062 42.5
Operational Reserves-- $0.0146 /kW/Mo......... $0.0208 /kW/Mo......... 0.0062 42.5
Supplemental.
Energy Imbalance................ $0.0 /kW/Mo............ $0.0 /kW/Mo............ 0.0 0.0
Regulation Purchased Adder (load prorated share of total prorated share of total N/A N/A
within SWPA BAA). energy cost. energy cost.
Transformation Service 69 kV & $0.46 /kW/Mo........... $0.86 /kW/Mo........... 0.4000 87.0
less (applied to usage, not
reservation).
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Non-Federal Transmission & Interconnection Facilities Service
----------------------------------------------------------------------------------------------------------------
NFTS-13A............... NFS-23................. Dollars Percent
----------------------------------------------------------------------------------------------------------------
Firm Point-to-Point Capacity........ $1.48 /kW/Mo........... $1.15 /kW/Mo........... ($0.33) -22.3
Non-Firm Point-to-Point Capacity (80 $1.184 /kW/Mo.......... $0.92 /kW/Mo........... (0.26) -22.3
percent of Firm Point-to-Point).
Network Integration................. $1.48 /kW/Mo........... $1.15 /kW/Mo........... (0.33) -22.3
Interconnection Facilities.......... $1.48 /kW/Mo........... $1.15 /kW/Mo........... (0.33) -22.3
Transformation Service 69 kV & less $0.46 /kW/Mo........... $0.86 /kW/Mo........... 0.40 87.0
(applied to usage, not reservation).
Scheduling, System Control, & $0.09 /kW/Mo........... $0.17 /kW/Mo........... 0.08 88.9
Dispatch.
Reactive Supply & Voltage Control... $0.04 /kW/Mo........... $0.10 /kW/Mo........... 0.06 150.0
Regulation & Frequency Response..... $0.07 /kW/Mo........... $0.0208 /kW/Mo......... (0.0492) -70.3
Operational Reserves--Spinning...... $0.0146 /kW/Mo......... $0.0208 /kW/Mo......... 0.0062 42.5
Operational Reserves--Supplemental.. $0.0146 /kW/Mo......... $0.0208 /kW/Mo......... 0.0062 42.5
Energy Imbalance.................... $0.0 /kW/Mo............ $0.0 /kW/Mo............ 0.0 0.0
Regulation Purchased Adder (load prorated share of total prorated share of total N/A N/A
within SWPA BAA). energy cost. energy cost.
----------------------------------------------------------------------------------------------------------------
Excess Energy
----------------------------------------------------------------------------------------------------------------
EE-13.................. EE-23.................. Dollars Percent
----------------------------------------------------------------------------------------------------------------
Excess Energy....................... $0.0094 /kWh........... formula rate........... N/A N/A
----------------------------------------------------------------------------------------------------------------
Public Participation
The procedures for public participation are found at title 10, part
903, subpart A of the Code of Federal Regulations (10 CFR part 903).
This proposed action is considered a ``Major Rate Adjustment,'' as
defined by 10 CFR 903.2(d). As such, in accordance with 10 CFR 903.14,
the public consultation and comment period is 90 days. In accordance
with 10 CFR 903.15(a) and 903.16(a), Southwestern will hold a Forum for
this proposed rate adjustment if requested. Southwestern will review
and consider all timely public comments at the conclusion of the
consultation and comment period and adjust the proposal as appropriate.
The Integrated System rate schedules will then be approved on an
interim basis.
Legal Authority
By Delegation Order No. S1-DEL-RATES-2016, effective November 19,
2016, the Secretary of Energy delegated: (1) the authority to develop
power and transmission rates to Southwestern's Administrator; (2) the
authority to confirm, approve, and place such rates into effect on an
interim basis to the Deputy Secretary of Energy; and (3) the authority
to confirm, approve, and place into effect on a final basis, or to
remand or disapprove such rates, to FERC. By Delegation Order No. S1-
DEL-S3-2024, effective August 30, 2024, the Secretary of Energy also
delegated the authority to confirm, approve, and place such rates into
effect on an interim basis to the
[[Page 88999]]
Under Secretary for Infrastructure. By Redelegation Order No. S3-DEL-
SWPA1-2023, effective April 10, 2023, the Under Secretary for
Infrastructure redelegated the authority to confirm, approve, and place
such rates into effect on an interim basis to the Administrator,
Southwestern.
Availability of Information
The 2023 Integrated System Power Repayment Studies and the
associated Rate Design Study as well as the proposed Integrated System
rate schedules are available on Southwestern's website at: https://www.energy.gov/swpa/rate-schedule-actions. At the conclusion of the
consultation and comment period, Southwestern will post all comments
received at the same website location. If a Forum is held, the
transcript of the Forum and any other documents introduced during the
Forum will also be made available on Southwestern's website.
Environmental Impact
Southwestern 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 through 4347; the Council
on Environmental Quality Regulations for implementing NEPA (40 CFR
parts 1500 through 1508); and DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021)
---------------------------------------------------------------------------
Determination Under Executive Order 12866
Southwestern 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 November 6,
2024, by Mike Wech, Administrator for Southwestern Power
Administration, pursuant to delegated authority from the Secretary of
Energy. That document, with the original signature and date, is
maintained by DOE. For administrative purposes only, and in compliance
with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of DOE. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on November 6, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-26144 Filed 11-8-24; 8:45 am]
BILLING CODE 6450-01-P
