Loveland Area Projects-Rate Order No. WAPA-212, 91723-91731 [2024-26932]
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Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
Signed in Washington, DC, on November
15, 2024.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer,
U.S. Department of Energy.
[FR Doc. 2024–27102 Filed 11–19–24; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Energy Information Administration
Agency Information Collection
Proposed Extension
U.S. Energy Information
Administration (EIA), Department of
Energy (DOE).
ACTION: Notice.
AGENCY:
EIA submitted an information
collection request for the three-year
extension, with changes, to the
Petroleum Marketing Program (PMP) as
required under the Paperwork
Reduction Act of 1995. EIA’s PMP
collects volumetric and price
information needed for determining the
supply of and demand for crude oil and
refined petroleum products.
DATES: Comments on this information
collection must be received no later
than December 20, 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
for Public Comments’’ or by using the
search function.
FOR FURTHER INFORMATION CONTACT:
Kenneth Pick, EIA Clearance Officer, at
(202) 586–5562. The forms and
instructions are available at https://
www.eia.gov/survey/.
SUPPLEMENTARY INFORMATION: This
information collection request contains:
(1) OMB No.: 1905–0174;
(2) Information Collection Request
Title: Petroleum Marketing Program;
(3) Type of Request: Three-year
extension with changes;
(4) Purpose: The surveys included in
the Petroleum Marketing Program
collect volume and price information
needed for determining the supply of
and demand for crude oil and refined
petroleum products. These surveys
provide a basic set of data pertaining to
the structure, efficiency, and behavior of
petroleum markets. These data are
published by EIA on its website, at
https://www.eia.gov. The Petroleum
Marketing Program consists of the
following surveys: Form EIA–14
Refiners’ Monthly Cost Report; Form
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SUMMARY:
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EIA–182 Domestic Crude Oil First
Purchase Report; Form EIA–856
Monthly Foreign Crude Oil Acquisition
Report; Form EIA–877 Winter Heating
Fuels Telephone Survey; Form EIA–878
Motor Gasoline Price Survey; Form EIA–
888 On-Highway Diesel Fuel Price
Survey;
(4a) Proposed Changes to Information
Collection:
Form EIA–888, On-Highway Diesel
Fuel Price Survey (Potential Change
to Data Collection Form and
Instructions)
EIA proposes modifying Form EIA–
888, On-Highway Diesel Fuel Price
Survey, to include a checkbox allowing
stations to indicate that they do not sell
diesel fuel. This designation will make
it easier to identify stations that are no
longer in scope for the survey but are
still in operation.
(4b) Proposed Survey
Discontinuations:
EIA is requesting the discontinuation
and removal of the following four
surveys from the Petroleum Marketing
Program:
Form EIA–863, Petroleum Product
Sales Identification Survey
The EIA–863, Petroleum Product
Sales Identification Survey, has been
suspended since 2011, with the last
completed survey cycle occurring for
2006 data. Surveys previously reliant on
these data for sample design have
implemented new sampling
methodologies, which no longer require
these data. EIA proposes formally
discontinuing this survey.
Form EIA–782A, Refiners’/Gas Plant
Operators’ Monthly Petroleum Product
Sales Report, Form EIA–782C, Monthly
Report of Prime Supplier Sales of
Petroleum Products Sold for Local
Consumption, and Form EIA–821,
Annual Fuel Oil and Kerosene Sales
Report
To concentrate limited EIA and
respondent resources on more timely
products, EIA proposes eliminating the
EIA–782A, Refiners’/Gas Plant
Operators’ Monthly Petroleum Product
Sales Report, the EIA–782C, Monthly
Report of Prime Supplier Sales of
Petroleum Products Sold for Local
Consumption, and the EIA–821, Annual
Fuel Oil and Kerosene Sales Report,
surveys. EIA remains committed to
balancing the costs associated with
collecting data (for both respondents
and taxpayers) with the benefits of
providing a more complete data set. The
U.S. energy industry is dynamic, and
our surveys and publications have and
will continue to evolve to provide the
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best value to the American people in
support of efficient energy markets. We
continue to explore opportunities to
incorporate similar data from other
sources.
(5) Annual Estimated Number of
Respondents: 5,241;
(6) Annual Estimated Number of
Total Responses: 199,792;
(7) Annual Estimated Number of
Burden Hours: 28,557;
(8) Annual Estimated Reporting and
Recordkeeping Cost Burden: $ 2,603,256
(28,557 annual burden hours multiplied
by $91.16 per hour), a reduction from $
5,147,216 (63,040 annual burden hours
multiplied by $81.65 per hour) in 2021.
EIA estimates that respondents will
have no additional costs associated with
the surveys other than the burden hours
and the maintenance of the information
during the normal course of business.
Statutory Authority: 15 U.S.C. 772(b)
and 42 U.S.C. 7101 et seq.
Signed in Washington, DC, on November
14, 2024.
Samson A. Adeshiyan,
Director, Office of Statistical Methods and
Research, U.S. Energy Information
Administration.
[FR Doc. 2024–27071 Filed 11–19–24; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Western Area Power Administration
Loveland Area Projects—Rate Order
No. WAPA–212
Western Area Power
Administration, DOE.
ACTION: Notice of rate.
AGENCY:
The formula rates for the
Rocky Mountain (RM) region’s Loveland
Area Projects (LAP) firm electric service
and sale of surplus products have been
confirmed, approved, and placed into
effect on an interim basis (Provisional
Formula Rates). LAP consists of the
Fryingpan-Arkansas Project (Fry-Ark)
and the Pick-Sloan Missouri Basin
Program (P–SMBP)—Western Division,
which were integrated for marketing
and ratemaking purposes in 1989. These
new formula rates replace the existing
formula rates for these services under
Rate Schedules L–F12, Firm Electric
Service; and L–M3, Sale of Surplus
Products, which expire on December 31,
2027. The LAP firm electric service
composite rate is increasing over a 2year period with an 8.8 percent increase
on January 1, 2025, and an additional
8.2 percent increase on January 1, 2026.
There are no changes to the formula rate
for sale of surplus products.
SUMMARY:
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Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
The Provisional Formula Rates
under Rate Schedules L–F13, Firm
Electric Service; and L–M4, Sale of
Surplus Products, are effective on the
first day of the first full billing period
beginning on or after January 1, 2025,
and will remain in effect through
December 31, 2029, pending
confirmation and approval by the
Federal Energy Regulatory Commission
(FERC) on a final basis or until
superseded.
DATES:
FOR FURTHER INFORMATION CONTACT:
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, or Sheila D. Cook, Rates
Manager, Rocky Mountain Region,
Western Area Power Administration,
(970) 685–9562, or email: scook@
wapa.gov.
On
September 12, 2023, FERC confirmed
and approved Rate Schedules L–F12
and L–M3 under Rate Order No.
WAPA–202 on a final basis through
December 31, 2027.1 Western Area
Power Administration (WAPA)
published a Federal Register notice
(Proposed FRN) on June 28, 2024 (89 FR
53992), proposing adjustments to
increase the base component and
decrease the drought adder component
of the LAP firm electric service rate
using a two-step rate adjustment where
roughly 50 percent of the total increase
is being applied in step 1 (January 2025)
and the remaining 50 percent is being
applied in step 2 (January 2026), and to
put new 5-year rate schedules in place.
The Proposed FRN also initiated a 60day public consultation and comment
period and set forth the dates and
locations of the virtual public
information and public comment
forums.
SUPPLEMENTARY INFORMATION:
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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 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–S3–2024,
effective August 30, 2024, the Secretary
1 Order Confirming and Approving Rate
Schedules on a Final Basis, FERC Docket No. EF23–
1–000 (2023).
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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
further redelegated the authority to
confirm, approve, and place such rates
into effect on an interim basis to
WAPA’s Administrator. This rate action
is issued under Redelegation Order No.
S3–DEL–WAPA1–2023 and Department
of Energy procedures for public
participation in rate adjustments set
forth in 10 CFR part 903.2
Following review of RM’s proposal,
Rate Order No. WAPA–212, which
provides the formula rates for LAP firm
electric service and sale of surplus
products, is hereby confirmed,
approved, and placed into effect on an
interim basis. WAPA will submit Rate
Order No. WAPA–212 to FERC for
confirmation and approval on a final
basis.
Department of Energy
Administrator, Western Area Power
Administration
In the Matter of: Western Area Power
Administration, Rocky Mountain
Region, Rate Adjustment for the
Loveland Area Projects, Firm Electric
Service and Sale of Surplus Products,
Formula Rates, Rate Order No.
WAPA–212
Order Confirming, Approving, and
Placing the Formula Rates for the
Loveland Area Projects Into Effect on
an Interim Basis
The formula rates in Rate Order No.
WAPA–212 are established following
section 302 of the Department of Energy
(DOE) Organization Act (42 U.S.C.
7152).1
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 Western Area
Power Administration (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
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
1 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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authority to confirm, approve, and place
into effect on a final basis, or to remand
or disapprove such rates, to the Federal
Energy Regulatory Commission (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 Under Secretary for
Infrastructure. By Redelegation Order
No. S3–DEL–WAPA1–2023, effective
April 10, 2023, the Under Secretary for
Infrastructure further redelegated the
authority to confirm, approve, and place
such rates into effect on an interim basis
to WAPA’s Administrator. This rate
action is issued under Redelegation
Order No. S3–DEL–WAPA1–2023 and
DOE procedures for public participation
in rate adjustments set forth at 10 CFR
part 903.2
Acronyms, Terms, and Definitions
As used in this Rate Order, the
following acronyms, terms, and
definitions apply:
Base: A component of the firm
electric service rate design that is a fixed
revenue requirement that includes
operation and maintenance expenses
(O&M), investments and replacements,
interest on investments and
replacements, normal timing power
purchases, and transmission costs.
Capacity: The electric capability of a
generator, transformer, transmission
circuit, or other equipment. It is
expressed in kilowatts (kW) or
megawatts (MW).
Capacity Rate: The rate which sets
forth the charges for capacity. It is
expressed in dollars per kilowatt-month
and applied to each kilowatt of the
Contract Rate of Delivery or CROD.
Composite Rate: The Power
Repayment Study (PRS) rate for
commercial firm power, which is the
total annual revenue requirement for
capacity and energy divided by the total
annual energy sales. It is expressed in
mills per kilowatt-hour (mills/kWh) and
used only for comparison purposes.
Corps of Engineers Annual Operating
Plan (AOP): The United States Army
Corps of Engineers (USACE) water
management guidelines designed to
meet the reservoir regulation objectives.
Customer: An entity with a contract
that is receiving Loveland Area Projects
(LAP) firm electric service from WAPA.
Customer Rate Brochure: A document
prepared for public distribution
explaining the rationale and background
for the information contained in the
Proposed FRN and in this rate order.
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
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Deficit(s): Deferred or unrecovered
annual and/or interest expenses.
Drought Adder: A component of the
firm electric service rate design that is
a formula-based revenue requirement
that includes future power purchases
above normal timing power purchases,
previous purchase power droughtrelated Deficits, and interest on the
purchase power drought-related
Deficits.
Energy: Measured in terms of the
work it is capable of doing over a period
of time. Electric energy is expressed in
kilowatt-hours (kWh) or megawatt-hours
(MWh).
Energy Charge: The charge under the
rate schedule for energy. It is expressed
in mills per kilowatt-hour and applied
to each kilowatt-hour delivered to each
Customer.
Firm: Power intended to be available
at all times during the period covered by
a guaranteed commitment to deliver,
even under adverse conditions.
FRN: Federal Register Notice—a
document published in the Federal
Register in order for WAPA to provide
information of public interest.
FY: WAPA’s fiscal year; October 1 to
September 30.
kW: Kilowatt—the electrical unit of
capacity that equals 1,000 watts.
kWh: Kilowatt-hour—the electrical
unit of energy that equals 1,000 watts in
1 hour.
kW-month: Kilowatt-month—the
electrical unit of the monthly amount of
capacity.
mills/kWh: Mills per kilowatt-hour—
the unit of charge for energy (equal to
one tenth of a cent or one thousandth
of a dollar).
Microsoft Teams: Microsoft Teams is
an online secure invite-only meeting
platform used by WAPA. The general
website is www.microsoft.com/en-us/
microsoft-teams/group-chat-software.
NEPA: National Environmental Policy
Act of 1969, as amended.
Non-timing Power Purchases: Power
purchases related to drought conditions,
not related to operational constraints.
Normal Timing Power Purchases:
Power purchases related to operational
constraints (e.g., management of
endangered species habitat, water
quality, navigation, balancing authority
purposes, market events, etc.), not
associated with drought conditions.
O&M: Operation and maintenance
expenses.
Order RA 6120.2: DOE Order
outlining Power Marketing
Administration financial reporting and
rate-making procedures.
Power: Capacity and energy.
Power Factor: The ratio of real to
apparent power at any given point and
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time in an electrical circuit. Generally,
it is expressed as a percentage.
Power Repayment Study (PRS):
Defined in Order RA 6120.2 as a study
portraying the annual repayment of
power production and transmission
costs of a power system through the
application of revenues over the
repayment period of the power system.
The study shows, among other items,
estimated revenues and expenses, year
by year, over the remainder of the power
system’s repayment period (based upon
conditions prevailing over the cost
evaluation period), the estimated
amount of Federal investment amortized
during each year, and the total
estimated amount of Federal investment
remaining to be amortized.
Preference: The provisions of
Reclamation Law that require WAPA to
first make Federal Power available to
certain entities. For example, section
9(c) of the Reclamation Project Act of
1939 (43 U.S.C. 485h(c)) states that
preference in the sale of Federal Power
shall be given to municipalities and
other public corporations or agencies
and also to cooperatives and other
nonprofit organizations financed in
whole or in part by loans made under
the Rural Electrification Act of 1936.
Provisional Formula Rates: Formula
rates confirmed, approved, and placed
into effect on an interim basis by the
Secretary of Energy or his/her designee.
Rate-setting PRS: The PRS used for
the rate adjustment.
Regions: WAPA’s Rocky Mountain
(RM) region, WAPA’s Upper Great
Plains (UGP) region.
Revenue Requirement: The revenue
required by the PRS to recover annual
expenses (such as O&M, purchase
power, transmission service expenses,
interest, and deferred expenses) and
repay Federal investments and
replacements and other assigned costs.
Effective Date
The Provisional Formula Rate
Schedules L–F13, Firm Electric Service;
and L–M4, Sale of Surplus Products,
will take effect on the first day of the
first full billing period beginning on or
after January 1, 2025, and will remain in
effect through December 31, 2029,
pending approval by FERC on a final
basis or until superseded.
Public Notice and Comment
RM followed the Procedures for
Public Participation in Power and
Transmission Rate Adjustments and
Extensions, 10 CFR part 903, in
developing these formula rates. RM took
the following steps to involve interested
parties in the rate process:
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1. On June 28, 2024, a Federal
Register notice (89 FR 53992) (Proposed
FRN) announced the proposed formula
rates and initiated a 60-day public
consultation and comment period.
2. On July 1, 2024, RM notified
Preference Customers and interested
parties of the proposed rates and
provided a copy of the published
Proposed FRN.
3. On August 7, 2024, RM held a
public information forum via Microsoft
Teams. RM’s representatives explained
the proposed formula rates, answered
questions, and gave notice that more
information was available in the
Customer Rate Brochure.
4. On August 7, 2024, RM held a
public comment forum via Microsoft
Teams to provide an opportunity for
Customers and other interested parties
to comment for the record.
5. RM established a public website to
post information about the rate process.
The website is located at:
www.wapa.gov/about-wapa/regions/rm/
rm-rates/2025-rate-adjustment-firmelectric-service.
6. During the 60-day consultation and
comment period, which ended on
August 27, 2024, RM received three oral
comment submissions and one written
comment letter. The comments and
RM’s responses are addressed in the
‘‘Comments’’ section. All comments
have been considered in the preparation
of this Rate Order.
Oral comments were received from
the following organizations:
City of Orange City, Iowa (member
utility)
Mid-West Electric Consumers
Association, Colorado (customer
association)
Missouri River Energy Services, South
Dakota (action agency)
Written comments were received from
the following organization:
Mid-West Electric Consumers
Association, Colorado (customer
association)
Power Repayment Study—Firm Electric
Service Rate Discussion
PRSs are prepared each FY to
determine if revenues will be sufficient
to repay, within the required time, all
costs assigned to the Pick-Sloan
Missouri Basin Program (P–SMBP) and
the Fryingpan-Arkansas Project (FryArk). Repayment criteria are based on
applicable laws and legislation, as well
as policies including Order RA 6120.2.
To meet the Cost Recovery Criteria
outlined in Order RA 6120.2, RM
developed a rate adjustment to
demonstrate that sufficient revenues
will be collected under the Provisional
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Formula Rate to meet future obligations.
The Revenue Requirement of the FryArk PRS is combined with the P–
SMBP—Western Division (WD) Revenue
Requirement, derived from the P–SMBP
PRS, to develop one rate for LAP firm
electric service. The Revenue
Requirement and composite rate for
LAP firm electric service are being
increased using a two-step adjustment,
where roughly 50 percent of the total
increase is being applied in step 1
(January 2025) and the remaining 50
percent is being applied in step 2
(January 2026), as indicated in Table 1:
TABLE 1—COMPARISON OF EXISTING AND PROVISIONAL REVENUE REQUIREMENTS AND COMPOSITE RATE
Existing
under L–F12
as of
Jan. 1, 2023
LAP
firm electric service
Total Revenue Requirement 1 (in million $) .........................
Pick-Sloan—WD 1 2 ..............................................................
Fry-Ark .................................................................................
(in million $).
LAP Composite Rate 1 (mills/kWh) ......................................
Provisional
under L–F13
first step
as of
Jan. 1, 2025
First step
percent
change
Provisional
under L–F13
second step
as of
Jan. 1, 2026
Second step
percent
change
$74.6
$81.3
9.0
$87.9
8.1
$58.5
$16.1
36.61
$62.6
$18.7
39.84
7.0
16.1
8.8
$66.3
$21.6
43.10
5.9
15.5
8.2
1 Provisional
values are estimates only based on using set/final Base and estimated Drought Adder components.
information on the overall P–SMBP PRS and charge components can be found in Rate Order No. WAPA–213 and on the UGP’s
website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
2 Additional
Firm Electric Service—Existing and
Provisional Formula Rates
Under the existing and provisional
rate methodology, rates for LAP firm
electric service are designed to recover
an annual Revenue Requirement that
includes investment and replacement
repayment (including aid to irrigation),
interest, purchase power, O&M, and
other expenses within the allowable
period. The annual Revenue
Requirement continues to be allocated
equally between capacity and energy.
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Base and Drought Adder Components
As a part of the existing and
provisional rate schedule, RM provides
for a formula-based adjustment of the
Drought Adder component, with an
annual increase of up to 2mills/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 1-year cycle. The
Drought Adder component may be
adjusted downward by any amount.
Continuing to identify the firm electric
service Revenue Requirement using
Base and Drought Adder components
will assist the Regions in presenting the
future impacts of droughts, demonstrate
repayment of drought-related costs in
the PRSs, and allow the Regions to be
more responsive to changes caused by
drought-related expenses. RM will
continue to charge and bill its customers
firm electric service rates for energy and
capacity, which are the sum of the Base
and Drought Adder components.
Under Rate Schedule L–F13, RM will
continue to identify its LAP firm electric
service Revenue Requirement using
Base and Drought Adder components.
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The Base component is a fixed Revenue
Requirement from each PRS that
includes annual O&M, investment and
replacement repayment, and associated
interest, Normal Timing Power
Purchases, and transmission costs. RM
cannot adjust the Base component
without a public process. The Drought
Adder component is a formula-based
Revenue Requirement from each PRS
that includes costs attributable to
drought conditions in the Regions. The
Drought Adder component includes
costs associated with future Non-timing
Power Purchases to meet firm electric
service contractual obligations not
covered with available system
generation due to a drought, previously
incurred Deficits due to purchased
power debt that resulted from Nontiming Power Purchases made during a
drought, and the interest associated
with drought-related Deficits. The
Drought Adder component is designed
to repay drought-related Deficits within
10 years from the time the Deficit was
incurred, using balloon-payment
methodology. For example, a droughtrelated Deficit incurred in FY2024
would be repaid by FY2034.
The annual Revenue Requirement
calculation will continue to be
summarized by the following formula:
Annual Revenue Requirement = Base
Revenue Requirement + Drought Adder
Revenue Requirement.
Annual Drought Adder Adjustment
Process
RM reviews the inputs for the P–
SMBP and Fry-Ark PRS Base and
Drought Adder components after the
annual PRSs are complete, generally in
the first quarter of the calendar year. If
an adjustment to the LAP Base
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component is necessary, or if an
incremental upward adjustment to the
LAP Drought Adder component greater
than the equivalent of 2 mills/kWh to
the LAP Rate is necessary, RM will
initiate a public process pursuant to 10
CFR part 903 prior to making an
adjustment.
In accordance with the approved
annual Drought Adder adjustment
process, the PRS Drought Adder
components are reviewed annually in
early summer to determine if drought
costs differ from those projected in the
PRSs. In October, RM will determine if
a change to the LAP Drought Adder
component is necessary, either
incremental or decremental. Any
incremental adjustment to the Drought
Adder component, up to 2mills/kWh, or
any decremental adjustment will be
implemented in the following January
billing cycle. Although decremental
adjustments to the Drought Adder
component will occur as drought costs
are repaid, the adjustments cannot
result in a negative Drought Adder
component. Implementing the Drought
Adder component adjustment on
January 1 of each year will help keep
the drought-related Deficits from
escalating as quickly, will lower the
interest expense due to drought-related
Deficits, will demonstrate responsible
Deficit management, and will provide
prompt drought-related Deficit
repayments.
Revenue Requirement Changes
The Base component costs for the P–
SMBP PRS have increased primarily
due to increased O&M from WAPA and
the generating agencies. The Base
component costs for the Fry-Ark PRS
have increased primarily due to
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increased annual expenses, mainly
attributed to transmission purchases
and O&M from both WAPA and the
Bureau of Reclamation and increases in
capital investment projections for the
Mount Elbert Power Plant repairs/
refurbishment.
The driver behind the P–SMBP
Drought Adder component decrease is
the USACE’s 2024 AOP projecting less
than average generation, despite the
improvement to generation as projected
in the WAPA–202 January 2023 rate.
Planned repayment of both the Base and
Drought Adder 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
regarding the ability to satisfy firm
power contractual commitments.
The net effect of these changes to the
PRS Base and Drought Adder
components results in an overall
increase to the LAP rate. To implement
the required rate increase over a twoyear period/in two steps, the Base
component Revenue Requirements and
associated charges for each step are set
values. For the Drought Adder
component, RM is using estimated
Revenue Requirements and associated
charges for each step based on the
USACE’s 2024 AOP and drought costs
projected in the Rate-Setting PRSs. In
accordance with the approved annual
Drought Adder adjustment process,
these Drought Adder estimates are
subject to change based upon updated
AOPs/generation models and revised
drought costs. A comparison of the
existing and provisional charge
component Revenue Requirements for
firm electric service are shown in Table
2:
TABLE 2—COMPARISON OF EXISTING AND PROVISIONAL CHARGE COMPONENT REVENUE REQUIREMENTS
Existing
under L–F12
as of
Jan.1, 2023
(in million $)
LAP
firm electric service
Base Component .................................................................
Pick-Sloan—WD 1 ................................................................
Fry—Ark ...............................................................................
Provisional
under L–F13
first step
as of
Jan. 1, 2025
(in million $)
Provisional
under L–F13
second step
as of
Jan. 1, 2026
(in million $)
First step
percent
change
Second step
percent
change
$67.8
$76.4
12.7
$85.1
11.4
51.7
16.1
6.8
57.7
18.7
4.9
11.6
16.1
¥27.9
63.5
21.6
2.8
10.1
15.5
¥42.9
6.8
0.0
4.9
0.0
¥27.9
0.0
2.8
0.0
¥42.9
0.0
Drought Adder Component 2 ................................................
Pick-Sloan—WD 1 2 ..............................................................
Fry—Ark 2 .............................................................................
1 Additional information on the overall P–SMBP PRS and charge components can be found in Rate Order No.WAPA–213 and on UGP’s
website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
2 Provisional values are estimates that may change during the existing annual Drought Adder adjustment process.
A summary of the provisional charge
components is shown in Table 3:
TABLE 3—SUMMARY OF TWO-STEP PROVISIONAL CHARGE COMPONENTS
Provisional charges under rate
schedule L–F13 first step
as of Jan. 1, 2025
Base
component
Firm Capacity ($/kilowatt-month) .....................................
Firm Energy (mills/kWh) ..................................................
1 Provisional
2 Provisional
$4.91
18.72
Drought
adder
component 1
$0.31
1.20
Base
component
$5.22
19.92
expense data for the Fry-Ark firm power
service Revenue Requirement through
Drought
adder
component 1
$5.47
20.86
Total
charge 2
$0.18
0.69
18:39 Nov 19, 2024
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the 5-year provisional rate approval
periods:
BILLING CODE 6450–01–P
The following Table 4 provides a
summary of projected revenue and
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Total
charge 2
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.
Statement of Revenue and Related
Expenses
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schedule L–F13 second step
as of Jan. 1, 2026
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21.55
91728
BILLING CODE 6450–01–C
The summary of the P–SMBP
projected revenue and expenses for the
5-year rate-setting periods is included in
the P–SMBP Statement of Revenue and
Related Expenses that is part of Rate
Order No. WAPA–213.
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Sale of Surplus Products Rate
Discussion
The sale of surplus products rate
schedule is formula-based, providing for
LAP Marketing Office 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. Rate
Schedule L–M3 is being superseded by
the Provisional Rate Schedule L–M4
and continues to allow for the sale of
energy, frequency response, regulation,
and reserves.
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Comments
RM received four separate oral and/or
written comments during the public
consultation and comment period. The
comments expressed have been
paraphrased and/or combined, where
appropriate, without compromising the
meaning of the comments.
A. Comment: The customer
association, member utility, and action
agency commented that they understand
a rate increase is necessary due to
inflation on O&M and labor costs, along
with increased debt principal costs and
they support and appreciate the increase
being implemented in two steps rather
than one large increase.
Response: WAPA appreciates the
recognition of the impacts many entities
are facing due to increasing inflation
and labor costs, the specific costs of the
power repayment study, and the twostep implementation for the rate
adjustment.
B. Comment: The customer
association and the action agency
commented that they have a concern
with the addition of new Full-Time
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Employees (FTE) when many positions
within WAPA remain unfilled. The
customers encourage WAPA to evaluate
its internal processes for cost control,
seeking efficiencies in workflow and
staffing.
Response: WAPA understands the
concern raised with the addition of new
FTEs and the impacts of the FTEs to the
rate. WAPA is committed to finding
ways to limit cost increases impacting
its customers while still ensuring it has
the positions needed to fulfill its
mission.
C. Comment: The action agency
commented that they lack an
understanding of any compromises
made within the budgeting process to
meet the WAPA Administrator’s
guidance stating tradeoffs need to be
made. The action agency also stated
they believe that this guidance could
have been followed as an element of
cost control.
Response: WAPA appreciates the
comment regarding the need for better
cost control and that compromises in
the budgeting process may be necessary
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Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
to accomplish this effort. WAPA is
committed to looking for ways to
control its costs and will continue to
communicate its funding priorities to its
customers.
D. Comment: The action agency and
the customer association commented
that they have concerns about the longterm viability of the P–SMBP going
forward as it faces significant financial
and operational issues in the future
including: (1) USACE’s plan of
rehabilitation of the Missouri River; (2)
dam safety repairs; (3) Aid to Irrigation
payments coming due; and (4)
environmental impact issues from nonsupporting stakeholders. They also
expressed their concern that these
issues could result in significant future
rate impacts to the firm power
customers and that WAPA needs to
focus on cost control in the future.
Response: WAPA appreciates the
concerns regarding the long-term
stability and affordability of the P–
SMBP beyond the 5-year rate window.
WAPA is committed to continuing to
focus on the impact of rising costs and
to mitigate those costs when possible.
E. Comment: The customer
organization commented that they
appreciate WAPA engaging with the
customers early in the ratemaking
process, responding to Customer
concerns and questions. The customer
organization also commented that they
encourage WAPA leadership to support
their rates and finance teams who have
long-standing working relationships
with the customers.
Response: WAPA appreciates the
comment regarding WAPA’s
commitment to engaging with the
Customers on issues concerning the firm
power rate.
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Certification of Rates
I have certified that the Provisional
Formula Rates for LAP firm electric
service under Rate Schedule L–F13 and
LAP sale of surplus products under Rate
Schedule L–M4 are the lowest possible
rates, consistent with sound business
principles. The Provisional Formula
Rates were developed following
administrative policies and applicable
laws.
documents are also available on RM’s
Rates website at: www.wapa.gov/aboutwapa/regions/rm/rm-rates/2025-rateadjustment-firm-electric-service.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this
action fits within the following
categorical exclusion listed in appendix
B to subpart D of 10 CFR part 1021: B4.3
(Electric power marketing rate
changes).3 Categorically excluded
projects and activities do not require
preparation of either an environmental
impact statement or an environmental
assessment. A copy of the categorical
exclusion determination is available on
WAPA’s Rates website at:
www.wapa.gov/wp-content/uploads/
2024/10/2025-001-Proposed-Lovelandarea-FY25-Rate-adjustment-CX.pdf.
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.
Submission to the Federal Energy
Regulatory Commission
The Provisional Formula Rates herein
confirmed, approved, and placed into
effect on an interim basis, together with
supporting documents, will be
submitted to FERC for confirmation and
final approval.
Order
In view of the above and under the
authority delegated to me, I hereby
confirm, approve, and place into effect,
on an interim basis, Rate Order No.
WAPA–212. The rates will remain in
effect on an interim basis until: (1) FERC
confirms and approves them on a final
basis; (2) subsequent rates are confirmed
and approved; or (3) such rates are
superseded.
Availability of Information
Information used by RM to develop
the Provisional Formula Rates is
available for inspection and copying at
the Rocky Mountain Regional Office,
5555 East Crossroads Boulevard,
Loveland, Colorado. Many of these
Signing Authority
This document of the Department of
Energy was signed on November 12,
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
3 The determination was done in compliance with
NEPA (42 U.S.C. 4321–4347); the Council on
Environmental Quality Regulations for
implementing NEPA (40 CFR parts 1500–1508); and
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91729
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 November
14, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
Rate Schedule L–F13
(Supersedes Rate Schedule L–F12
Effective January 1, 2023)
United States Department of Energy
Western Area Power Administration
Rocky Mountain Region
Loveland Area Projects
Firm Electric Service
(Approved Under Rate Order No.
WAPA–212)
Effective
First Step: Beginning on the first day
of the first full billing period beginning
on or after January 1, 2025, through
December 31, 2025.
Second Step: Beginning on January 1,
2026, and extending through December
31, 2029, or until superseded by another
rate schedule, whichever occurs earlier.
Available
Within the marketing area served by
the Loveland Area Projects (LAP)
(consisting of the Fryingpan-Arkansas
Project and the Pick-Sloan Missouri
Basin Program—Western Division,
which were integrated for marketing
and rate-making purposes in 1989),
parts of Colorado, Kansas, Nebraska,
and Wyoming.
Applicable
To the LAP firm electric service
delivered at specific point(s) of delivery,
as established by contract.
Character
Alternating current, 60 hertz, three
phase, delivered and metered at the
voltages and points established by
contract.
Formula Rate and Charge Components
LAP Firm Electric Service Rate (Rate) =
Base component + Drought Adder
component:
DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021).
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First step
January 1, 2025
monthly charges
Base
component
Capacity Charge ($/kilowatt-month of billing capacity 3)
Energy Charge (mills/kWh of monthly entitlement) .........
2 Values
3 Unless
$0.31
1.20
Base
component
$5.22
19.92
$5.47
20.86
Drought
adder
component 1
$0.18
0.69
Total
charge 2
$5.65
21.55
are estimates that are subject to change during the annual Drought Adder adjustment process.
are estimates only based on final Base and estimated Drought Adder components.
otherwise specified by contract, the billing capacity will be the seasonal contract rate of delivery.
Charge Components
Base Component: A fixed revenue
requirement that includes operation and
maintenance expense, investments and
replacements, interest on investments
and replacements, normal timing power
purchases (purchases due to operational
constraints, not associated with
drought), and transmission costs. Any
proposed change to the Base component
will require a public process. The Base
component revenue requirement for the
first step is $76,396,300 and for the
second step is $85,126,600.
Drought Adder Component: A
formula-based revenue requirement that
includes future power purchases above
normal timing power purchases,
previous purchase power drought-
related deficits, and interest on the
purchase power drought-related deficits.
The Drought Adder component revenue
requirement for the first step is
$4,890,480 and for the second step is
estimated to be $2,803,080. The second
step revenue requirement is subject to
change during the annual Drought
Adder adjustment processes starting in
January 2026.
Annual Drought Adder Adjustment
Process
the formula. In October, RM will make
a final determination of any change to
the Drought Adder component charge,
either incremental or decremental. If a
Drought Adder component change is
required, a modified Drought Adder
revenue requirement and the associated
charges will become effective the
following January 1 and will be
identified in a Drought Adder
modification update. RM will inform
customers of updates by letter and post
updates to RM’s external website.
substation, the meter readings will be
increased to compensate for transformer
losses as provided for in the contract.
For Power Factor: None. Customers
will be required to maintain a power
factor within the range of 95-percent
leading to 95-percent lagging, measured
at the point of interconnection.
The Drought Adder component may
be adjusted annually using the above
formulas for any costs attributed to
drought of less than or equal to the
equivalent of 2 mills/kWh to the Rate.
Any planned incremental upward
adjustment to the Drought Adder
component greater than the equivalent
of 2 mills/kWh to the Rate will require
a public process.
The annual review process is initiated
in early summer when the Rocky
Mountain (RM) region reviews the
Drought Adder component and provides
notice of any estimated change to the
Drought Adder component charge under
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Total
charge
Adjustments
For Transformer Losses: If delivery is
made at transmission voltage but
metered on the low-voltage side of the
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1 Values
$4.91
18.72
Drought
adder
component
Second step
January 1, 2026
monthly charges
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
formula rates for these services under
Rate Schedules P–SED–F14, Firm Power
Service; P–SED–FP14, Firm Peaking
Power Service; and P–SED–M2, Sale of
Surplus Products, which expire on
December 31, 2027. The P–SMBP—ED
firm power service composite rate is
increasing over a 2-year period with a
7.5 percent increase on January 1, 2025,
and an additional 6.2 percent increase
on January 1, 2026. There are no
changes to the formula rate for sale of
surplus products.
Rate Schedule L–M4
(Supersedes Rate Schedule L–M3
Effective January 1, 2023)
United States Department of Energy
Western Area Power Administration
Rocky Mountain Region
Loveland Area Projects
Sale of Surplus Products
(Approved Under Rate Order No.
WAPA–212)
Effective
The first day of the first full billing
period beginning on or after January 1,
2025, and extending through December
31, 2029, or until superseded by another
rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to
Loveland Area Projects (LAP) marketing
and is applicable to the sale of the
following LAP surplus energy and
capacity products: energy, frequency
response, regulation, and reserves. If
any of the above LAP surplus products
are available, LAP can make the
product(s) available for sale, providing
entities enter into separate agreement(s)
with LAP Marketing Office which will
specify the terms of sale(s).
Formula Rate
The charge for each product will be
determined at the time of the sale 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.
[FR Doc. 2024–26932 Filed 11–19–24; 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, DOE.
ACTION: Notice of rate order.
AGENCY:
The formula rates for the
Upper Great Plains (UGP) region’s PickSloan Missouri Basin Program (P–
SMBP)—Eastern Division (ED) firm
power service, firm peaking power
service, and sale of surplus products
have been confirmed, approved, and
placed into effect on an interim basis
(Provisional Formula Rates). These new
formula rates replace the existing
khammond on DSK9W7S144PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
18:39 Nov 19, 2024
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The Provisional Formula Rates
under Rate Schedules P–SED–F15, Firm
Power Service; P–SED–FP15, Firm
Peaking Power Service; and Rate
Schedule P–SED–M3, Sale of Surplus
Products, are effective on the first day
of the first full billing period beginning
on or after January 1, 2025, and will
remain in effect through December 31,
2029, pending confirmation and
approval by the Federal Energy
Regulatory Commission (FERC) on a
final basis or until superseded.
DATES:
FOR FURTHER INFORMATION CONTACT:
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,
or Linda Cady-Hoffman, Rates Manager,
Upper Great Plains Region, Western
Area Power Administration, (406) 255–
2920, or email: cady@wapa.gov or
ugpfirmrate@wapa.gov.
On June
29, 2023, FERC confirmed and approved
Formula Rate Schedules P–SED–F14, P–
SED–FP14, and P–SED–M2, under Rate
Order No. WAPA–203, on a final basis
through December 31, 2027.1 Western
Area Power Administration (WAPA)
published a Federal Register notice
(Proposed FRN) on June 28, 2024 (89 FR
53989), proposing adjustments to
increase the base component and
decrease the drought adder component
of the P–SMBP—ED firm power service
and firm peaking power service rate
using a two-step rate adjustment where
roughly 50 percent of the total increase
is being applied in step 1 (January 2025)
and the remaining 50 percent is being
applied in step 2 (January 2026), and to
put new 5-year rate schedules in place.
The Proposed FRN also initiated a 60day public consultation and comment
period and set forth the dates and
locations of the virtual public
information and public comment
forums.
SUPPLEMENTARY INFORMATION:
1 Order Confirming and Approving Rate Schedule
on a Final Basis, FERC Docket No. EF23–2–000
(2023).
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91731
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 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–S3–2024,
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
Under Secretary for Infrastructure. By
Redelegation Order No. S3–DEL–
WAPA1–2023, effective April 10, 2023,
the Under Secretary for Infrastructure
further redelegated the authority to
confirm, approve, and place such rates
into effect on an interim basis to
WAPA’s Administrator. This rate action
is issued under Redelegation Order No.
S3–DEL–WAPA1–2023 and Department
of Energy procedures for public
participation in rate adjustments set
forth at 10 CFR part 903.2
Following review of UGP’s proposal,
Rate Order No. WAPA–213, which
provides the formula rates for the P–
SMBP—ED firm power service, firm
peaking power service, and sale of
surplus products, is hereby confirmed,
approved, and placed into effect on an
interim basis. WAPA will submit Rate
Order No. WAPA–213 to FERC for
confirmation and approval on a final
basis.
Department of Energy
Administrator, Western Area Power
Administration
In the Matter of: Western Area Power
Administration, Upper Great Plains
Region, Rate Adjustment for the PickSloan Missouri Basin Program—Eastern
Division, Firm Power Service, Firm
Peaking Power Service, and Sale of
Surplus Products Formula Rates, Rate
Order No. WAPA–213
Order Confirming, Approving, and
Placing The Formula Rates for the PickSloan Missouri Basin Program—
Eastern Division into Effect on an
Interim Basis
The formula rates in Rate Order No.
WAPA–213 are established following
section 302 of the Department of Energy
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
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]]>Agencies
[Federal Register Volume 89, Number 224 (Wednesday, November 20, 2024)]
[Notices]
[Pages 91723-91731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26932]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Loveland Area Projects--Rate Order No. WAPA-212
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate.
-----------------------------------------------------------------------
SUMMARY: The formula rates for the Rocky Mountain (RM) region's
Loveland Area Projects (LAP) firm electric service and sale of surplus
products have been confirmed, approved, and placed into effect on an
interim basis (Provisional Formula Rates). LAP consists of the
Fryingpan-Arkansas Project (Fry-Ark) and the Pick-Sloan Missouri Basin
Program (P-SMBP)--Western Division, which were integrated for marketing
and ratemaking purposes in 1989. These new formula rates replace the
existing formula rates for these services under Rate Schedules L-F12,
Firm Electric Service; and L-M3, Sale of Surplus Products, which expire
on December 31, 2027. The LAP firm electric service composite rate is
increasing over a 2-year period with an 8.8 percent increase on January
1, 2025, and an additional 8.2 percent increase on January 1, 2026.
There are no changes to the formula rate for sale of surplus products.
[[Page 91724]]
DATES: The Provisional Formula Rates under Rate Schedules L-F13, Firm
Electric Service; and L-M4, Sale of Surplus Products, are effective on
the first day of the first full billing period beginning on or after
January 1, 2025, and will remain in effect through December 31, 2029,
pending confirmation and approval by the Federal Energy Regulatory
Commission (FERC) on a final basis or until superseded.
FOR FURTHER INFORMATION CONTACT: Barton V. Barnhart, Regional Manager,
Rocky Mountain Region, Western Area Power Administration, 5555 East
Crossroads Boulevard, Loveland, CO 80538-8986, or email:
[email protected], or Sheila D. Cook, Rates Manager, Rocky Mountain
Region, Western Area Power Administration, (970) 685-9562, or email:
[email protected].
SUPPLEMENTARY INFORMATION: On September 12, 2023, FERC confirmed and
approved Rate Schedules L-F12 and L-M3 under Rate Order No. WAPA-202 on
a final basis through December 31, 2027.\1\ Western Area Power
Administration (WAPA) published a Federal Register notice (Proposed
FRN) on June 28, 2024 (89 FR 53992), proposing adjustments to increase
the base component and decrease the drought adder component of the LAP
firm electric service rate using a two-step rate adjustment where
roughly 50 percent of the total increase is being applied in step 1
(January 2025) and the remaining 50 percent is being applied in step 2
(January 2026), and to put new 5-year rate schedules in place. The
Proposed FRN also initiated a 60-day public consultation and comment
period and set forth the dates and locations of the virtual public
information and public comment forums.
---------------------------------------------------------------------------
\1\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF23-1-000 (2023).
---------------------------------------------------------------------------
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 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-S3-2024, 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 Under Secretary for Infrastructure.
By Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023,
the Under Secretary for Infrastructure further redelegated the
authority to confirm, approve, and place such rates into effect on an
interim basis to WAPA's Administrator. This rate action is issued under
Redelegation Order No. S3-DEL-WAPA1-2023 and Department of Energy
procedures for public participation in rate adjustments set forth in 10
CFR part 903.\2\
---------------------------------------------------------------------------
\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------
Following review of RM's proposal, Rate Order No. WAPA-212, which
provides the formula rates for LAP firm electric service and sale of
surplus products, is hereby confirmed, approved, and placed into effect
on an interim basis. WAPA will submit Rate Order No. WAPA-212 to FERC
for confirmation and approval on a final basis.
Department of Energy
Administrator, Western Area Power Administration
In the Matter of: Western Area Power Administration, Rocky Mountain
Region, Rate Adjustment for the Loveland Area Projects, Firm Electric
Service and Sale of Surplus Products, Formula Rates, Rate Order No.
WAPA-212
Order Confirming, Approving, and Placing the Formula Rates for the
Loveland Area Projects Into Effect on an Interim Basis
The formula rates in Rate Order No. WAPA-212 are established
following section 302 of the Department of Energy (DOE) Organization
Act (42 U.S.C. 7152).\1\
---------------------------------------------------------------------------
\1\ 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.
---------------------------------------------------------------------------
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 Western Area Power Administration
(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 the
Federal Energy Regulatory Commission (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 Under Secretary for Infrastructure.
By Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023,
the Under Secretary for Infrastructure further redelegated the
authority to confirm, approve, and place such rates into effect on an
interim basis to WAPA's Administrator. This rate action is issued under
Redelegation Order No. S3-DEL-WAPA1-2023 and DOE procedures for public
participation in rate adjustments set forth at 10 CFR part 903.\2\
---------------------------------------------------------------------------
\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------
Acronyms, Terms, and Definitions
As used in this Rate Order, the following acronyms, terms, and
definitions apply:
Base: A component of the firm electric service rate design that is
a fixed revenue requirement that includes operation and maintenance
expenses (O&M), investments and replacements, interest on investments
and replacements, normal timing power purchases, and transmission
costs.
Capacity: The electric capability of a generator, transformer,
transmission circuit, or other equipment. It is expressed in kilowatts
(kW) or megawatts (MW).
Capacity Rate: The rate which sets forth the charges for capacity.
It is expressed in dollars per kilowatt-month and applied to each
kilowatt of the Contract Rate of Delivery or CROD.
Composite Rate: The Power Repayment Study (PRS) rate for commercial
firm power, which is the total annual revenue requirement for capacity
and energy divided by the total annual energy sales. It is expressed in
mills per kilowatt-hour (mills/kWh) and used only for comparison
purposes.
Corps of Engineers Annual Operating Plan (AOP): The United States
Army Corps of Engineers (USACE) water management guidelines designed to
meet the reservoir regulation objectives.
Customer: An entity with a contract that is receiving Loveland Area
Projects (LAP) firm electric service from WAPA.
Customer Rate Brochure: A document prepared for public distribution
explaining the rationale and background for the information contained
in the Proposed FRN and in this rate order.
[[Page 91725]]
Deficit(s): Deferred or unrecovered annual and/or interest
expenses.
Drought Adder: A component of the firm electric service rate design
that is a formula-based revenue requirement that includes future power
purchases above normal timing power purchases, previous purchase power
drought-related Deficits, and interest on the purchase power drought-
related Deficits.
Energy: Measured in terms of the work it is capable of doing over a
period of time. Electric energy is expressed in kilowatt-hours (kWh) or
megawatt-hours (MWh).
Energy Charge: The charge under the rate schedule for energy. It is
expressed in mills per kilowatt-hour and applied to each kilowatt-hour
delivered to each Customer.
Firm: Power intended to be available at all times during the period
covered by a guaranteed commitment to deliver, even under adverse
conditions.
FRN: Federal Register Notice--a document published in the Federal
Register in order for WAPA to provide information of public interest.
FY: WAPA's fiscal year; October 1 to September 30.
kW: Kilowatt--the electrical unit of capacity that equals 1,000
watts.
kWh: Kilowatt-hour--the electrical unit of energy that equals 1,000
watts in 1 hour.
kW-month: Kilowatt-month--the electrical unit of the monthly amount
of capacity.
mills/kWh: Mills per kilowatt-hour--the unit of charge for energy
(equal to one tenth of a cent or one thousandth of a dollar).
Microsoft Teams: Microsoft Teams is an online secure invite-only
meeting platform used by WAPA. The general website is
www.microsoft.com/en-us/microsoft-teams/group-chat-software.
NEPA: National Environmental Policy Act of 1969, as amended.
Non-timing Power Purchases: Power purchases related to drought
conditions, not related to operational constraints.
Normal Timing Power Purchases: Power purchases related to
operational constraints (e.g., management of endangered species
habitat, water quality, navigation, balancing authority purposes,
market events, etc.), not associated with drought conditions.
O&M: Operation and maintenance expenses.
Order RA 6120.2: DOE Order outlining Power Marketing Administration
financial reporting and rate-making procedures.
Power: Capacity and energy.
Power Factor: The ratio of real to apparent power at any given
point and time in an electrical circuit. Generally, it is expressed as
a percentage.
Power Repayment Study (PRS): Defined in Order RA 6120.2 as a study
portraying the annual repayment of power production and transmission
costs of a power system through the application of revenues over the
repayment period of the power system. The study shows, among other
items, estimated revenues and expenses, year by year, over the
remainder of the power system's repayment period (based upon conditions
prevailing over the cost evaluation period), the estimated amount of
Federal investment amortized during each year, and the total estimated
amount of Federal investment remaining to be amortized.
Preference: The provisions of Reclamation Law that require WAPA to
first make Federal Power available to certain entities. For example,
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c))
states that preference in the sale of Federal Power shall be given to
municipalities and other public corporations or agencies and also to
cooperatives and other nonprofit organizations financed in whole or in
part by loans made under the Rural Electrification Act of 1936.
Provisional Formula Rates: Formula rates confirmed, approved, and
placed into effect on an interim basis by the Secretary of Energy or
his/her designee.
Rate-setting PRS: The PRS used for the rate adjustment.
Regions: WAPA's Rocky Mountain (RM) region, WAPA's Upper Great
Plains (UGP) region.
Revenue Requirement: The revenue required by the PRS to recover
annual expenses (such as O&M, purchase power, transmission service
expenses, interest, and deferred expenses) and repay Federal
investments and replacements and other assigned costs.
Effective Date
The Provisional Formula Rate Schedules L-F13, Firm Electric
Service; and L-M4, Sale of Surplus Products, will take effect on the
first day of the first full billing period beginning on or after
January 1, 2025, and will remain in effect through December 31, 2029,
pending approval by FERC on a final basis or until superseded.
Public Notice and Comment
RM followed the Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in
developing these formula rates. RM took the following steps to involve
interested parties in the rate process:
1. On June 28, 2024, a Federal Register notice (89 FR 53992)
(Proposed FRN) announced the proposed formula rates and initiated a 60-
day public consultation and comment period.
2. On July 1, 2024, RM notified Preference Customers and interested
parties of the proposed rates and provided a copy of the published
Proposed FRN.
3. On August 7, 2024, RM held a public information forum via
Microsoft Teams. RM's representatives explained the proposed formula
rates, answered questions, and gave notice that more information was
available in the Customer Rate Brochure.
4. On August 7, 2024, RM held a public comment forum via Microsoft
Teams to provide an opportunity for Customers and other interested
parties to comment for the record.
5. RM established a public website to post information about the
rate process. The website is located at: www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.
6. During the 60-day consultation and comment period, which ended
on August 27, 2024, RM received three oral comment submissions and one
written comment letter. The comments and RM's responses are addressed
in the ``Comments'' section. All comments have been considered in the
preparation of this Rate Order.
Oral comments were received from the following organizations:
City of Orange City, Iowa (member utility)
Mid-West Electric Consumers Association, Colorado (customer
association)
Missouri River Energy Services, South Dakota (action agency)
Written comments were received from the following organization:
Mid-West Electric Consumers Association, Colorado (customer
association)
Power Repayment Study--Firm Electric Service Rate Discussion
PRSs are prepared each FY to determine if revenues will be
sufficient to repay, within the required time, all costs assigned to
the Pick-Sloan Missouri Basin Program (P-SMBP) and the Fryingpan-
Arkansas Project (Fry-Ark). Repayment criteria are based on applicable
laws and legislation, as well as policies including Order RA 6120.2. To
meet the Cost Recovery Criteria outlined in Order RA 6120.2, RM
developed a rate adjustment to demonstrate that sufficient revenues
will be collected under the Provisional
[[Page 91726]]
Formula Rate to meet future obligations. The Revenue Requirement of the
Fry-Ark PRS is combined with the P-SMBP--Western Division (WD) Revenue
Requirement, derived from the P-SMBP PRS, to develop one rate for LAP
firm electric service. The Revenue Requirement and composite rate for
LAP firm electric service are being increased using a two-step
adjustment, where roughly 50 percent of the total increase is being
applied in step 1 (January 2025) and the remaining 50 percent is being
applied in step 2 (January 2026), as indicated in Table 1:
Table 1--Comparison of Existing and Provisional Revenue Requirements and Composite Rate
----------------------------------------------------------------------------------------------------------------
Provisional Provisional
Existing under under L-F13 under L-F13
LAP firm electric service L-F12 as of first step as First step second step as Second step
Jan. 1, 2023 of Jan. 1, percent change of Jan. 1, percent change
2025 2026
----------------------------------------------------------------------------------------------------------------
Total Revenue Requirement \1\ $74.6 $81.3 9.0 $87.9 8.1
(in million $).................
Pick-Sloan--WD \1\ \2\.......... $58.5 $62.6 7.0 $66.3 5.9
Fry-Ark......................... $16.1 $18.7 16.1 $21.6 15.5
(in million $)..................
LAP Composite Rate \1\ (mills/ 36.61 39.84 8.8 43.10 8.2
kWh)...........................
----------------------------------------------------------------------------------------------------------------
\1\ Provisional values are estimates only based on using set/final Base and estimated Drought Adder components.
\2\ Additional information on the overall P-SMBP PRS and charge components can be found in Rate Order No. WAPA-
213 and on the UGP's website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
Firm Electric Service--Existing and Provisional Formula Rates
Under the existing and provisional rate methodology, rates for LAP
firm electric service are designed to recover an annual Revenue
Requirement that includes investment and replacement repayment
(including aid to irrigation), interest, purchase power, O&M, and other
expenses within the allowable period. The annual Revenue Requirement
continues to be allocated equally between capacity and energy.
Base and Drought Adder Components
As a part of the existing and provisional rate schedule, RM
provides for a formula-based adjustment of the Drought Adder component,
with an annual increase of up to 2mills/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 1-year cycle. The Drought Adder
component may be adjusted downward by any amount. Continuing to
identify the firm electric service Revenue Requirement using Base and
Drought Adder components will assist the Regions in presenting the
future impacts of droughts, demonstrate repayment of drought-related
costs in the PRSs, and allow the Regions to be more responsive to
changes caused by drought-related expenses. RM will continue to charge
and bill its customers firm electric service rates for energy and
capacity, which are the sum of the Base and Drought Adder components.
Under Rate Schedule L-F13, RM will continue to identify its LAP
firm electric service Revenue Requirement using Base and Drought Adder
components. The Base component is a fixed Revenue Requirement from each
PRS that includes annual O&M, investment and replacement repayment, and
associated interest, Normal Timing Power Purchases, and transmission
costs. RM cannot adjust the Base component without a public process.
The Drought Adder component is a formula-based Revenue Requirement from
each PRS that includes costs attributable to drought conditions in the
Regions. The Drought Adder component includes costs associated with
future Non-timing Power Purchases to meet firm electric service
contractual obligations not covered with available system generation
due to a drought, previously incurred Deficits due to purchased power
debt that resulted from Non-timing Power Purchases made during a
drought, and the interest associated with drought-related Deficits. The
Drought Adder component is designed to repay drought-related Deficits
within 10 years from the time the Deficit was incurred, using balloon-
payment methodology. For example, a drought-related Deficit incurred in
FY2024 would be repaid by FY2034.
The annual Revenue Requirement calculation will continue to be
summarized by the following formula: Annual Revenue Requirement = Base
Revenue Requirement + Drought Adder Revenue Requirement.
Annual Drought Adder Adjustment Process
RM reviews the inputs for the P-SMBP and Fry-Ark PRS Base and
Drought Adder components after the annual PRSs are complete, generally
in the first quarter of the calendar year. If an adjustment to the LAP
Base component is necessary, or if an incremental upward adjustment to
the LAP Drought Adder component greater than the equivalent of 2 mills/
kWh to the LAP Rate is necessary, RM will initiate a public process
pursuant to 10 CFR part 903 prior to making an adjustment.
In accordance with the approved annual Drought Adder adjustment
process, the PRS Drought Adder components are reviewed annually in
early summer to determine if drought costs differ from those projected
in the PRSs. In October, RM will determine if a change to the LAP
Drought Adder component is necessary, either incremental or
decremental. Any incremental adjustment to the Drought Adder component,
up to 2mills/kWh, or any decremental adjustment will be implemented in
the following January billing cycle. Although decremental adjustments
to the Drought Adder component will occur as drought costs are repaid,
the adjustments cannot result in a negative Drought Adder component.
Implementing the Drought Adder component adjustment on January 1 of
each year will help keep the drought-related Deficits from escalating
as quickly, will lower the interest expense due to drought-related
Deficits, will demonstrate responsible Deficit management, and will
provide prompt drought-related Deficit repayments.
Revenue Requirement Changes
The Base component costs for the P-SMBP PRS have increased
primarily due to increased O&M from WAPA and the generating agencies.
The Base component costs for the Fry-Ark PRS have increased primarily
due to
[[Page 91727]]
increased annual expenses, mainly attributed to transmission purchases
and O&M from both WAPA and the Bureau of Reclamation and increases in
capital investment projections for the Mount Elbert Power Plant
repairs/refurbishment.
The driver behind the P-SMBP Drought Adder component decrease is
the USACE's 2024 AOP projecting less than average generation, despite
the improvement to generation as projected in the WAPA-202 January 2023
rate. Planned repayment of both the Base and Drought Adder 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 regarding
the ability to satisfy firm power contractual commitments.
The net effect of these changes to the PRS Base and Drought Adder
components results in an overall increase to the LAP rate. To implement
the required rate increase over a two-year period/in two steps, the
Base component Revenue Requirements and associated charges for each
step are set values. For the Drought Adder component, RM is using
estimated Revenue Requirements and associated charges for each step
based on the USACE's 2024 AOP and drought costs projected in the Rate-
Setting PRSs. In accordance with the approved annual Drought Adder
adjustment process, these Drought Adder estimates are subject to change
based upon updated AOPs/generation models and revised drought costs. A
comparison of the existing and provisional charge component Revenue
Requirements for firm electric service are shown in Table 2:
Table 2--Comparison of Existing and Provisional Charge Component Revenue Requirements
----------------------------------------------------------------------------------------------------------------
Provisional Provisional
Existing under under L-F13 under L-F13
L-F12 as of first step as First step second step as Second step
LAP firm electric service Jan.1, 2023 of Jan. 1, percent change of Jan. 1, percent change
(in million $) 2025 (in 2026 (in
million $) million $)
----------------------------------------------------------------------------------------------------------------
Base Component.................. $67.8 $76.4 12.7 $85.1 11.4
Pick-Sloan--WD \1\.............. 51.7 57.7 11.6 63.5 10.1
Fry--Ark........................ 16.1 18.7 16.1 21.6 15.5
Drought Adder Component \2\..... 6.8 4.9 -27.9 2.8 -42.9
Pick-Sloan--WD \1\ \2\.......... 6.8 4.9 -27.9 2.8 -42.9
Fry--Ark \2\.................... 0.0 0.0 0.0 0.0 0.0
----------------------------------------------------------------------------------------------------------------
\1\ Additional information on the overall P-SMBP PRS and charge components can be found in Rate Order No.WAPA-
213 and on UGP's website at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
\2\ Provisional values are estimates that may change during the existing annual Drought Adder adjustment
process.
A summary of the provisional charge components is shown in Table 3:
Table 3--Summary of Two-Step Provisional Charge Components
----------------------------------------------------------------------------------------------------------------
Provisional charges under rate Provisional charges under rate
schedule L-F13 first step as of Jan. schedule L-F13 second step as of Jan.
1, 2025 1, 2026
-----------------------------------------------------------------------------
Drought Drought
Base adder Total Base adder Total
component component charge \2\ component component charge \2\
\1\ \1\
----------------------------------------------------------------------------------------------------------------
Firm Capacity ($/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
----------------------------------------------------------------------------------------------------------------
\1\ Provisional values are estimates that may change during the existing annual Drought Adder adjustment
process.
\2\ Provisional values are estimates only based on using final Base and estimated Drought Adder components.
Statement of Revenue and Related Expenses
The following Table 4 provides a summary of projected revenue and
expense data for the Fry-Ark firm power service Revenue Requirement
through the 5-year provisional rate approval periods:
BILLING CODE 6450-01-P
[[Page 91728]]
[GRAPHIC] [TIFF OMITTED] TN20NO24.073
BILLING CODE 6450-01-C
The summary of the P-SMBP projected revenue and expenses for the 5-
year rate-setting periods is included in the P-SMBP Statement of
Revenue and Related Expenses that is part of Rate Order No. WAPA-213.
Sale of Surplus Products Rate Discussion
The sale of surplus products rate schedule is formula-based,
providing for LAP Marketing Office 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. Rate Schedule L-M3 is being superseded
by the Provisional Rate Schedule L-M4 and continues to allow for the
sale of energy, frequency response, regulation, and reserves.
Comments
RM received four separate oral and/or written comments during the
public consultation and comment period. The comments expressed have
been paraphrased and/or combined, where appropriate, without
compromising the meaning of the comments.
A. Comment: The customer association, member utility, and action
agency commented that they understand a rate increase is necessary due
to inflation on O&M and labor costs, along with increased debt
principal costs and they support and appreciate the increase being
implemented in two steps rather than one large increase.
Response: WAPA appreciates the recognition of the impacts many
entities are facing due to increasing inflation and labor costs, the
specific costs of the power repayment study, and the two-step
implementation for the rate adjustment.
B. Comment: The customer association and the action agency
commented that they have a concern with the addition of new Full-Time
Employees (FTE) when many positions within WAPA remain unfilled. The
customers encourage WAPA to evaluate its internal processes for cost
control, seeking efficiencies in workflow and staffing.
Response: WAPA understands the concern raised with the addition of
new FTEs and the impacts of the FTEs to the rate. WAPA is committed to
finding ways to limit cost increases impacting its customers while
still ensuring it has the positions needed to fulfill its mission.
C. Comment: The action agency commented that they lack an
understanding of any compromises made within the budgeting process to
meet the WAPA Administrator's guidance stating tradeoffs need to be
made. The action agency also stated they believe that this guidance
could have been followed as an element of cost control.
Response: WAPA appreciates the comment regarding the need for
better cost control and that compromises in the budgeting process may
be necessary
[[Page 91729]]
to accomplish this effort. WAPA is committed to looking for ways to
control its costs and will continue to communicate its funding
priorities to its customers.
D. Comment: The action agency and the customer association
commented that they have concerns about the long-term viability of the
P-SMBP going forward as it faces significant financial and operational
issues in the future including: (1) USACE's plan of rehabilitation of
the Missouri River; (2) dam safety repairs; (3) Aid to Irrigation
payments coming due; and (4) environmental impact issues from non-
supporting stakeholders. They also expressed their concern that these
issues could result in significant future rate impacts to the firm
power customers and that WAPA needs to focus on cost control in the
future.
Response: WAPA appreciates the concerns regarding the long-term
stability and affordability of the P-SMBP beyond the 5-year rate
window. WAPA is committed to continuing to focus on the impact of
rising costs and to mitigate those costs when possible.
E. Comment: The customer organization commented that they
appreciate WAPA engaging with the customers early in the ratemaking
process, responding to Customer concerns and questions. The customer
organization also commented that they encourage WAPA leadership to
support their rates and finance teams who have long-standing working
relationships with the customers.
Response: WAPA appreciates the comment regarding WAPA's commitment
to engaging with the Customers on issues concerning the firm power
rate.
Certification of Rates
I have certified that the Provisional Formula Rates for LAP firm
electric service under Rate Schedule L-F13 and LAP sale of surplus
products under Rate Schedule L-M4 are the lowest possible rates,
consistent with sound business principles. The Provisional Formula
Rates were developed following administrative policies and applicable
laws.
Availability of Information
Information used by RM to develop the Provisional Formula Rates is
available for inspection and copying at the Rocky Mountain Regional
Office, 5555 East Crossroads Boulevard, Loveland, Colorado. Many of
these documents are also available on RM's Rates website at:
www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this action fits within the following
categorical exclusion listed in appendix B to subpart D of 10 CFR part
1021: B4.3 (Electric power marketing rate changes).\3\ Categorically
excluded projects and activities do not require preparation of either
an environmental impact statement or an environmental assessment. A
copy of the categorical exclusion determination is available on WAPA's
Rates website at: www.wapa.gov/wp-content/uploads/2024/10/2025-001-Proposed-Loveland-area-FY25-Rate-adjustment-CX.pdf.
---------------------------------------------------------------------------
\3\ The determination was done in compliance with NEPA (42
U.S.C. 4321-4347); the Council on Environmental Quality Regulations
for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA
Implementing Procedures and Guidelines (10 CFR part 1021).
---------------------------------------------------------------------------
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.
Submission to the Federal Energy Regulatory Commission
The Provisional Formula Rates herein confirmed, approved, and
placed into effect on an interim basis, together with supporting
documents, will be submitted to FERC for confirmation and final
approval.
Order
In view of the above and under the authority delegated to me, I
hereby confirm, approve, and place into effect, on an interim basis,
Rate Order No. WAPA-212. The rates will remain in effect on an interim
basis until: (1) FERC confirms and approves them on a final basis; (2)
subsequent rates are confirmed and approved; or (3) such rates are
superseded.
Signing Authority
This document of the Department of Energy was signed on November
12, 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 November 14, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
Rate Schedule L-F13
(Supersedes Rate Schedule L-F12 Effective January 1, 2023)
United States Department of Energy
Western Area Power Administration
Rocky Mountain Region
Loveland Area Projects
Firm Electric Service
(Approved Under Rate Order No. WAPA-212)
Effective
First Step: Beginning on the first day of the first full billing
period beginning on or after January 1, 2025, through December 31,
2025.
Second Step: Beginning on January 1, 2026, and extending through
December 31, 2029, or until superseded by another rate schedule,
whichever occurs earlier.
Available
Within the marketing area served by the Loveland Area Projects
(LAP) (consisting of the Fryingpan-Arkansas Project and the Pick-Sloan
Missouri Basin Program--Western Division, which were integrated for
marketing and rate-making purposes in 1989), parts of Colorado, Kansas,
Nebraska, and Wyoming.
Applicable
To the LAP firm electric service delivered at specific point(s) of
delivery, as established by contract.
Character
Alternating current, 60 hertz, three phase, delivered and metered
at the voltages and points established by contract.
Formula Rate and Charge Components
LAP Firm Electric Service Rate (Rate) = Base component + Drought Adder
component:
[[Page 91730]]
----------------------------------------------------------------------------------------------------------------
First step January 1, 2025 monthly Second step January 1, 2026 monthly
charges charges
-----------------------------------------------------------------------------
Drought
Base Drought Total Base adder Total
component adder charge component component charge \2\
component \1\
----------------------------------------------------------------------------------------------------------------
Capacity Charge ($/kilowatt-month $4.91 $0.31 $5.22 $5.47 $0.18 $5.65
of billing capacity \3\).........
Energy Charge (mills/kWh of 18.72 1.20 19.92 20.86 0.69 21.55
monthly entitlement).............
----------------------------------------------------------------------------------------------------------------
\1\ Values are estimates that are subject to change during the annual Drought Adder adjustment process.
\2\ Values are estimates only based on final Base and estimated Drought Adder components.
\3\ Unless otherwise specified by contract, the billing capacity will be the seasonal contract rate of delivery.
Charge Components
Base Component: A fixed revenue requirement that includes operation
and maintenance expense, investments and replacements, interest on
investments and replacements, normal timing power purchases (purchases
due to operational constraints, not associated with drought), and
transmission costs. Any proposed change to the Base component will
require a public process. The Base component revenue requirement for
the first step is $76,396,300 and for the second step is $85,126,600.
[GRAPHIC] [TIFF OMITTED] TN20NO24.074
Drought Adder Component: A formula-based revenue requirement that
includes future power purchases above normal timing power purchases,
previous purchase power drought-related deficits, and interest on the
purchase power drought-related deficits. The Drought Adder component
revenue requirement for the first step is $4,890,480 and for the second
step is estimated to be $2,803,080. The second step revenue requirement
is subject to change during the annual Drought Adder adjustment
processes starting in January 2026.
[GRAPHIC] [TIFF OMITTED] TN20NO24.075
Annual Drought Adder Adjustment Process
The Drought Adder component may be adjusted annually using the
above formulas for any costs attributed to drought of less than or
equal to the equivalent of 2 mills/kWh to the Rate. Any planned
incremental upward adjustment to the Drought Adder component greater
than the equivalent of 2 mills/kWh to the Rate will require a public
process.
The annual review process is initiated in early summer when the
Rocky Mountain (RM) region reviews the Drought Adder component and
provides notice of any estimated change to the Drought Adder component
charge under the formula. In October, RM will make a final
determination of any change to the Drought Adder component charge,
either incremental or decremental. If a Drought Adder component change
is required, a modified Drought Adder revenue requirement and the
associated charges will become effective the following January 1 and
will be identified in a Drought Adder modification update. RM will
inform customers of updates by letter and post updates to RM's external
website.
Adjustments
For Transformer Losses: If delivery is made at transmission voltage
but metered on the low-voltage side of the substation, the meter
readings will be increased to compensate for transformer losses as
provided for in the contract.
For Power Factor: None. Customers will be required to maintain a
power factor within the range of 95-percent leading to 95-percent
lagging, measured at the point of interconnection.
[[Page 91731]]
Rate Schedule L-M4
(Supersedes Rate Schedule L-M3 Effective January 1, 2023)
United States Department of Energy
Western Area Power Administration
Rocky Mountain Region
Loveland Area Projects
Sale of Surplus Products
(Approved Under Rate Order No. WAPA-212)
Effective
The first day of the first full billing period beginning on or
after January 1, 2025, and extending through December 31, 2029, or
until superseded by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Loveland Area Projects (LAP)
marketing and is applicable to the sale of the following LAP surplus
energy and capacity products: energy, frequency response, regulation,
and reserves. If any of the above LAP surplus products are available,
LAP can make the product(s) available for sale, providing entities
enter into separate agreement(s) with LAP Marketing Office which will
specify the terms of sale(s).
Formula Rate
The charge for each product will be determined at the time of the
sale 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.
[FR Doc. 2024-26932 Filed 11-19-24; 8:45 am]
BILLING CODE 6450-01-P
