Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-213, 91731-91739 [2024-26933]
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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31, 2029, or until superseded by another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
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SUMMARY:
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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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(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
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
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Acronyms, Terms, and Definitions
As used in this Rate Order, the
following acronyms, terms, and
definitions apply:
Base: A component of the firm power
and firm peaking power 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).
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
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.
2 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347
(Feb. 21, 2019).
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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 Pick-Sloan Missouri
Basin Program—Eastern Division (P–
SMBP—ED) firm power 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.
Deficit(s): Deferred or unrecovered
annual and/or interest expenses.
Demand: The rate at which electric
energy is delivered to or by a system or
part of a system, generally expressed in
kilowatts (kW) or megawatts (MW), at a
given instant or averaged over any
designated interval of time.
Drought Adder: A component of the
firm power and firm peaking power 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
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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, interest,
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and deferred expenses) and repay
Federal investments and replacements
and other assigned costs.
Effective Date
The Provisional Formula Rate
Schedules P–SED–F15, Firm Power
Service; P–SED–FP15, Firm Peaking
Power Service; and P–SED–M3, 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
UGP followed the Procedures for
Public Participation in Power and
Transmission Rate Adjustments and
Extensions, 10 CFR part 903, in
developing these formula rates. UGP
took the following steps to involve
interested parties in the rate process:
1. On June 28, 2024, a Federal
Register notice (89 FR 53989) (Proposed
FRN) announced the proposed formula
rates and launched the 60-day public
consultation and comment period.
2. On July 2, 2024, UGP notified
Preference Customers and interested
parties of the proposed rates and
provided a copy of the published
Proposed FRN.
3. On August 7, 2024, UGP held a
public information forum via Microsoft
Teams. UGP’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, UGP held a
public comment forum via Microsoft
Teams to provide an opportunity for
Customers and other interested parties
to comment for the record.
5. UGP established a public website to
post information about the rate process.
The website is located at:
www.wapa.gov/about-wapa/regions/
ugp/ugp-rates/2025-firm-rateadjustment.
6. During the 60-day consultation and
comment period, which ended on
August 27, 2024, UGP received three
oral comment submissions and 20
written comment letters. The comments
and UGP’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 organizations:
East River Electric Power Cooperative,
South Dakota (member utility)
Mid-West Electric Consumers
Association, Colorado (customer
association)
Missouri River Energy Services, South
Dakota (action agency)
City of Alton, Iowa (member utility)
City of Benson, Minnesota (member
utility)
City of Denison, Iowa (member utility)
City of Detroit Lakes, Minnesota
(member utility)
City of Hawarden, Iowa (member utility)
City of Lake Park, Iowa (member utility)
City of Madison, Minnesota (member
utility)
City of Orange City, Iowa (member
utility)
City of Rock Rapids, Iowa (member
utility)
City of Sauk Centre, Minnesota (member
utility)
City of Sioux Center, Iowa (member
utility)
City of Valley City, North Dakota
(member utility)
City of Vermillion, South Dakota
(member utility)
City of Wadena, Minnesota (member
utility)
City of Watertown, South Dakota
(member utility)
City of Willmar, Minnesota (member
utility)
City of Worthington, Minnesota
(member utility)
Power Repayment Study—Firm Power
Service Rate Discussion
A PRS is 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).
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, UGP
developed a rate adjustment to
demonstrate sufficient revenues will be
collected under the Provisional Formula
Rates to meet future obligations. The
Revenue Requirement for P–SMBP is
recovered by both the UGP in the P–
SMBP—ED rates and by RM in the
Loveland Area Projects (LAP) rate. The
Revenue Requirement and composite
rate for P–SMBP—ED firm power
service is being increased using a twostep 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
P–SED–F14
as of
Jan. 1, 2023
P–SMBP firm power service
Total Revenue Requirement (in million $) ...........................
P–SMBP—ED Composite Rate (mills/kWh) ........................
1 Provisional
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2 Provisional
$268.4
27.91
First Step
Percent
Change
$288.1
30.00
Provisional
under
P–SED–F15
second step
as of
Jan. 1, 2026 2
7.4
7.5
Second step
percent
change
$306.0
31.87
6.2
6.2
values are estimates only based on using set/final Base and estimated Drought Adder components.
values are estimates that may change during the existing annual drought adder adjustment process.
Firm Power Service—Existing and
Provisional Formula Rates
Under the existing and provisional
rate methodology, rates for P–SMBP—
ED firm power and firm peaking power
services are designed to recover an
VerDate Sep<11>2014
Provisional
under
P–SED–F15
first step
as of
Jan. 1, 2025 1
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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
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Requirement continues to be allocated
equally between demand and energy.
Base and Drought Adder Components
As a part of the existing and
provisional rate schedules, UGP
provides for a formula-based adjustment
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of the Drought Adder component, with
an annual increase of up to 2 mills/
kWh. The 2 mills/kWh cap places a
limit on the amount the Drought Adder
component can be adjusted upward
relative to associated drought costs
included in the Drought Adder formula
rate for any 1-year cycle. The Drought
Adder component may be adjusted
downward by any amount. Continuing
to identify the firm power service
Revenue Requirement using Base and
Drought Adder components will assist
the Regions in presenting future impacts
of droughts, demonstrate repayment of
drought-related costs in the PRS, and
allow the Regions to be more responsive
to changes caused by drought-related
expenses. UGP will continue to charge
and bill its customers firm power and
firm peaking power service rates for
energy and demand, which are the sum
of the Base and Drought Adder
components.
Under Rate Schedule P–SED–F15,
UGP will continue to identify its P–
SMBP—ED firm power service Revenue
Requirement using Base and Drought
Adder components. The Base
component is a fixed Revenue
Requirement that includes annual O&M,
investment and replacement repayment,
and associated interest, Normal Timing
Power Purchases, and transmission
costs. UGP cannot adjust the Base
component without a public process.
The Drought Adder component is a
formula-based Revenue Requirement
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 power
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 FY 2024
would be repaid by FY 2034.
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
The Regions review the inputs for the
P–SMBP Base and Drought Adder
components after the annual PRS is
complete, generally in the first quarter
of the calendar year. If an adjustment to
the P–SMBP Base component is
necessary, or if an incremental upward
adjustment to the P–SMBP PRS Drought
Adder component greater than the
equivalent of 2 mills/kWh to the P–
SMBP Composite Rate is necessary, the
Regions 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
component is reviewed annually in
early summer to determine if drought
costs differ from those projected in the
PRS. In October, the Regions will
determine if a change to the Drought
Adder component is necessary, either
incremental or decremental. Any
incremental adjustment to the Drought
Adder component, up to 2 mills/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 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–203 January 2023 rates.
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–203.
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 P–SMBP 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, UGP 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 PRS. 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
Requirement for firm power service are
shown in Table 2:
TABLE 2—COMPARISON OF EXISTING AND PROVISIONAL CHARGE COMPONENT REVENUE REQUIREMENTS
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P–SMBP—ED firm power service
Existing
under
P–SED–F14/
P–SED–FP14
as of
Jan. 1, 2023
(in million $)
Provisional
under
P–SED–F15/
P–SED–FP15
first step
as of
Jan. 1, 2025 1
(in million $)
$235.4
33.0
$264.5
23.6
Base Component .................................................................
Drought Adder Component ..................................................
1 Provisional
VerDate Sep<11>2014
First step
percent
change
Provisional
under
P–SED–F15/
P–SED–FP15
second step
as of
Jan. 1, 2026 1
(in million $)
12.4
¥28.5
values are estimates that may change during the existing annual Drought Adder adjustment process.
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$292.4
13.6
Second step
percent
change
10.5
¥42.4
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A summary of the provisional charge
components is shown in Table 3:
TABLE 3—SUMMARY OF TWO-STEP PROVISIONAL CHARGE COMPONENTS
Provisional charges under rate schedules
P–SED–F15 and P–SED–FP15
first step
as of Jan. 1, 2025
Base
component
Firm
Firm
Firm
Firm
Demand ($/kilowatt-month) .....................................
Energy (mills/kWh) ..................................................
Peaking Demand ($/kilowatt-month) .......................
Peaking Energy 3 (mills/kWh) ..................................
$6.05
15.21
$5.55
15.21
Drought
adder
component 1
Total
charge 2
$0.55
1.34
$0.50
1.34
Provisional charges under rate
schedules P–SED–F15 and
P–SED–FP15 second step
as of Jan. 1, 2026
Base
component
$6.60
16.55
$6.05
16.55
Drought
adder
component 1
$6.70
16.80
$6.10
16.80
Total
charge 2
$0.30
0.80
$0.30
0.80
$7.00
17.60
$6.40
17.60
1 Provisional
values are estimates that may change during the existing annual Drought Adder adjustment process.
values are estimates only based on using final Base and estimated Drought Adder components.
peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.
2 Provisional
Statement of Revenue and Related
Expenses
expense data for the P–SMBP firm
power service Revenue Requirement
BILLING CODE 6450–01–P
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The following Table 4 provides a
summary of the projected revenue and
BILLING CODE 6450–01–C
Sale of Surplus Products Rate
Discussion
The sale of surplus products rate
schedule is formula-based, providing for
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through the 5-year provisional rate
approval periods:
P–SMBP—ED Marketing Office to sell
P–SMBP—ED surplus energy and
demand products. If P–SMBP—ED
surplus products are available, as
specified in the rate schedule, the
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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
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3 Firm
91736
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separate charge may be incurred. Rate
Schedule P–SED–M2 is being
superseded by the Provisional Rate
Schedule P–SED–M3 and continues to
allow for the sale of energy, frequency
response, regulation, and reserves.
Comments
UGP received 23 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 action agency
commented that the rate adjustment is
a $15 million cumulative increase for
their member communities. The
member utilities commented that the
rate adjustment would have increases
ranging from $30,000 to $490,000
annually in wholesale power supply
costs depending on the customers’
Contract Rate of Delivery (CROD).
Response: WAPA recognizes the
magnitude of the increased rate and its
impact on its customers. WAPA is
committed to continuing to adapt to
rising industry costs while also
providing power and energy to its
customers at the lowest cost possible.
WAPA does not take the increase in
costs lightly and is committed to
continuing to find ways to limit the
impact of increasing industry costs as
much as possible.
B. Comment: The customer
association, member utilities, 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 14 percent 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.
C. Comment: The customer
association, member utilities, 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
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the positions needed to fulfill its
mission.
D. 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
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.
E. 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.
F. 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 the issues concerning the
firm power rate.
Certification of Rates
I have certified that the Provisional
Formula Rates for P–SMBP—ED firm
power service under Rate Schedule P–
SED–F15, P–SMBP—ED firm peaking
power service under Rate Schedule P–
SED–FP15, and P–SMBP—ED sale of
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Fmt 4703
Sfmt 4703
surplus products under Rate Schedule
P–SED–M3 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 UGP to develop
the Provisional Formula Rates is
available for inspection and copying at
the Upper Great Plains Regional Office
located at 2900 4th Avenue North, 6th
Floor, Billings, Montana. Many of these
documents are also available on UGP’s
Rates website at: www.wapa.gov/aboutwapa/regions/ugp/ugp-rates/2025-firmrate-adjustment.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this
action fits within the following
categorical exclusions 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/
2024/08/Rate-order-drought-adder-andbase-component-increases-for-2025and-2026-CX-08302024.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–213. The rates will remain in
effect on an interim basis until: (1) FERC
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).
E:\FR\FM\20NON1.SGM
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91737
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
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.
until superseded by another rate
schedule, whichever occurs earlier.
Available
Within the marketing area served by
the Eastern Division of the Pick-Sloan
Missouri Basin Program; within
Montana, North Dakota, South Dakota,
Minnesota, Iowa, and Nebraska.
Rate Schedule P–SED–F15
(Supersedes Schedule P–SED–F14)
United States Department of Energy
Western Area Power Administration
Applicable
Upper Great Plains Region
To the power and energy delivered to
customers as firm power service, as
established in the contract for service.
Pick-Sloan Missouri Basin Program—
Eastern Division
Firm Power Service
Character
(Approved Under Rate Order No.
WAPA–213)
Alternating current, 60 hertz, three
phase, delivered and metered at the
voltages and points established by
contract.
Effective
First Step: Beginning on the first day
of 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, through December 31, 2029, or
Formula Rate and Charge Components
Rate = Base component + Drought
Adder component
First step
January 1, 2025
monthly charges
Base
component
Firm Demand Charge ($/kilowatt-month) ........................
Firm Energy Charge (mills/kWh) .....................................
khammond on DSK9W7S144PROD with NOTICES
2 Values
Total
charge
$0.55
1.34
Base
component
$6.60
16.55
$6.70
16.80
Drought
adder
component 1
$0.30
0.80
Total
charge 2
$7.00
17.60
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.
Billing Demand: The billing demand
will be as defined by the power sales
contract.
Charge Components
Drought Adder Component: A
formula-based revenue requirement that
includes future purchase power expense
above timing purchases, previous
purchase power drought deficits, and
interest on the purchase power drought
deficits. The second step revenue
requirement is subject to change during
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Base Component: A fixed revenue
requirement that includes operation and
maintenance expense, investments and
replacements, interest on investments
and replacements, normal timing
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purchase power (purchases due to
operational constraints, not associated
with drought), and transmission costs.
Any provisional change to the Base
component will require a public
process.
the annual Drought Adder adjustment
process starting in January 2026.
E:\FR\FM\20NON1.SGM
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1 Values
$6.05
15.21
Drought
adder
component
Second step
January 1, 2026
monthly charges
91738
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
Annual Drought Adder Adjustment
Process
The Drought Adder 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 Power Repayment
Study (PRS) composite rate. Any
planned incremental upward
adjustment to the Drought Adder greater
than the equivalent of 2 mills/kWh to
the PRS composite rate will require a
public process.
The annual review process is initiated
in early summer when WAPA reviews
the Drought Adder component and
provides notice of any estimated change
to the Drought Adder component charge
under the formula. In October, WAPA
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.
WAPA will inform customers of updates
by letter and post updates to WAPA’s
external website.
Adjustments
For Billing of Unauthorized Overruns:
For each billing period in which there
is a contract violation involving an
unauthorized overrun of the contractual
firm power and/or energy obligations,
such overrun shall be billed at 10 times
the formula rate.
For Power Factor: None. Customers
will be required to maintain a power
factor at the point of delivery between
95-percent lagging and 95-percent
leading.
Second Step: Beginning on January 1,
2026, through December 31, 2029, or
until superseded by another rate
schedule, whichever occurs earlier.
Rate Schedule P–SED–FP15
United States Department of Energy
To the power sold to customers as
firm peaking power service, as
established in the contract for service.
Western Area Power Administration
Character
Upper Great Plains Region
Alternating current, 60 hertz, three
phase, delivered and metered at the
voltages and points established by
contract.
(Supersedes Schedule P–SED–FP14)
Pick-Sloan Missouri Basin Program—
Eastern Division
Firm Peaking Power Service
Available
Within the marketing area served by
the Eastern Division of the Pick-Sloan
Missouri Basin Program; within
Montana, North Dakota, South Dakota,
Minnesota, Iowa, and Nebraska.
Applicable
Formula Rate and Charge Components
(Approved Under Rate Order No.
WAPA–213)
Effective
First Step: Beginning on the first day
of the first day of the first full billing
period beginning on or after January 1,
2025, through December 31, 2025.
Rate = Base component + Drought
Adder component
First step
January 1, 2025
monthly charges
Firm Peaking Demand Charge ($/kilowatt-month) ..........
1 Values
Base
component
Drought
adder
component
Total
charge
Base
component
Drought
adder
component 1
Total
charge 2
$5.55
$0.50
$6.05
$6.10
$0.30
$6.40
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 component.
replacements, interest on investments
and replacements, normal timing
purchase power (purchases due to
operational constraints, not associated
with drought), and transmission costs.
Any provisional change to the Base
component will require a public
process.
EN20NO24.079</GPH>
Charge Components
Base Component: A fixed revenue
requirement that includes operation and
maintenance expense, investments and
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2 Values
Second step
January 1, 2026
monthly charges
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
Drought Adder Component: A
formula-based revenue requirement that
includes future purchase power above
timing purchases, previous purchase
power drought deficits, and interest on
the purchase power drought deficits.
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
Rate Schedule P–SED–M3
ENVIRONMENTAL PROTECTION
AGENCY
The Drought Adder 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 Power Repayment
Study (PRS) composite rate. Any
planned incremental upward
adjustment to the Drought Adder greater
than the equivalent of 2 mills/kWh to
the PRS composite rate will require a
public process.
The annual review process is initiated
in early summer when WAPA reviews
the Drought Adder component and
provides notice of any estimated change
to the Drought Adder component charge
under the formula. In October, WAPA
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.
WAPA will inform customers of updates
by letter and post updates to WAPA’s
external website.
United States Department of Energy
The billing demand will be the greater
of (1) the highest 30-minute integrated
demand measured during the month up
to, but not in excess of, the delivery
obligation under the power sales
contract, or (2) the contract rate of
delivery.
Adjustments
For Billing for Unauthorized
Overruns: For each billing period in
which there is a contract violation
involving an unauthorized overrun of
the contractual obligation for peaking
demand and/or energy, such overrun
shall be billed at 10 times the above
rate.
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Western Area Power Administration
[EPA–HQ–OPPT–2024–0131; FRL–12261–
02–OCSPP]
Pick-Sloan Missouri Basin Program—
Eastern Division
Risk Management Under the Toxic
Substances Control Act: Certain Perand Polyfluoroalkyl Substances;
Extension of Comment Period
Sale of Surplus Products
AGENCY:
Upper Great Plains Region
(Approved Under Rate Order No.
WAPA–213)
Environmental Protection
Agency (EPA).
ACTION: Notice; extension of comment
period.
Effective
SUMMARY:
The first day of the first full billing
period beginning on or after January 1,
2025, through December 31, 2029, or
until superseded by another rate
schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Eastern
Division of the Pick-Sloan Missouri
Basin Program marketing and is
applicable to the sale of the following
P–SMBP—ED surplus energy and
capacity products: energy, frequency
response, regulation, and reserves. If
any P–SMBP—ED surplus energy and
capacity products are available, UGP
can make the product(s) available for
sale, providing entities enter into a
separate agreement(s) with UGP
Marketing Office which will specify the
terms of sale(s).
Formula Rate
The charge for each product is
determined at the time of the sale based
on market rates, plus administrative
costs. The customer will be responsible
for acquiring transmission services
necessary to deliver the product(s), for
which a separate charge may be
incurred.
[FR Doc. 2024–26933 Filed 11–19–24; 8:45 am]
BILLING CODE 6450–01–P
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The Environmental Protection
Agency (EPA) is extending the comment
period for the notice that published in
the Federal Register on September 30,
2024, seeking public comment on the
manufacture of certain per- and
polyfluoroalkyl substances (PFAS),
including perfluorooctanoic acid
(PFOA), perfluorononanoic acid
(PFNA), and perfluorodecanoic acid
(PFDA), during the fluorination of highdensity polyethylene (HDPE) and other
plastic containers to inform regulations
as appropriate under the Toxic
Substances Control Act (TSCA). That
notice established a public comment
period that is scheduled to end on
November 29, 2024. This document
extends that comment period for 31
days to December 30, 2024. EPA
received a request to extend the
comment period from an interested
stakeholder who requested additional
time to collect information relating to
EPA’s notice and develop thoughtful
responses to the issues raised in EPA’s
notice. EPA believes it is appropriate to
extend the comment period in order to
give stakeholders including the
requester additional time to identify and
gather information related to the issues
identified in EPA’s notice and to
prepare comprehensive comments.
DATES: The comment period for the
document published on September 30,
2024, at 89 FR 79581 (FRL–12261–01–
OCSPP), is now extended. Comments
must be received on or before December
30, 2024.
ADDRESSES: Submit your comments,
identified by docket identification (ID)
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(Supersedes Rate Schedule P–SED–M2)
Billing Demand
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91739
]]>Agencies
[Federal Register Volume 89, Number 224 (Wednesday, November 20, 2024)]
[Notices]
[Pages 91731-91739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26933]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program--Eastern Division--Rate Order
No. WAPA-213
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order.
-----------------------------------------------------------------------
SUMMARY: The formula rates for the Upper Great Plains (UGP) region's
Pick-Sloan 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 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.
DATES: 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.
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:
[email protected], or Linda Cady-Hoffman, Rates Manager, Upper Great
Plains Region, Western Area Power Administration, (406) 255-2920, or
email: [email protected] or [email protected].
SUPPLEMENTARY INFORMATION: 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 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 Schedule on a Final
Basis, FERC Docket No. EF23-2-000 (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 at 10
CFR part 903.\2\
---------------------------------------------------------------------------
\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------
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 Pick-Sloan 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
Pick-Sloan 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
[[Page 91732]]
(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 power and firm peaking power 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).
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 Pick-Sloan
Missouri Basin Program--Eastern Division (P-SMBP--ED) firm power
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.
Deficit(s): Deferred or unrecovered annual and/or interest
expenses.
Demand: The rate at which electric energy is delivered to or by a
system or part of a system, generally expressed in kilowatts (kW) or
megawatts (MW), at a given instant or averaged over any designated
interval of time.
Drought Adder: A component of the firm power and firm peaking power
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,
interest,
[[Page 91733]]
and deferred expenses) and repay Federal investments and replacements
and other assigned costs.
Effective Date
The Provisional Formula Rate Schedules P-SED-F15, Firm Power
Service; P-SED-FP15, Firm Peaking Power Service; and P-SED-M3, 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
UGP followed the Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in
developing these formula rates. UGP took the following steps to involve
interested parties in the rate process:
1. On June 28, 2024, a Federal Register notice (89 FR 53989)
(Proposed FRN) announced the proposed formula rates and launched the
60-day public consultation and comment period.
2. On July 2, 2024, UGP notified Preference Customers and
interested parties of the proposed rates and provided a copy of the
published Proposed FRN.
3. On August 7, 2024, UGP held a public information forum via
Microsoft Teams. UGP'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, UGP held a public comment forum via Microsoft
Teams to provide an opportunity for Customers and other interested
parties to comment for the record.
5. UGP established a public website to post information about the
rate process. The website is located at: www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
6. During the 60-day consultation and comment period, which ended
on August 27, 2024, UGP received three oral comment submissions and 20
written comment letters. The comments and UGP'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 organizations:
East River Electric Power Cooperative, South Dakota (member utility)
Mid-West Electric Consumers Association, Colorado (customer
association)
Missouri River Energy Services, South Dakota (action agency)
City of Alton, Iowa (member utility)
City of Benson, Minnesota (member utility)
City of Denison, Iowa (member utility)
City of Detroit Lakes, Minnesota (member utility)
City of Hawarden, Iowa (member utility)
City of Lake Park, Iowa (member utility)
City of Madison, Minnesota (member utility)
City of Orange City, Iowa (member utility)
City of Rock Rapids, Iowa (member utility)
City of Sauk Centre, Minnesota (member utility)
City of Sioux Center, Iowa (member utility)
City of Valley City, North Dakota (member utility)
City of Vermillion, South Dakota (member utility)
City of Wadena, Minnesota (member utility)
City of Watertown, South Dakota (member utility)
City of Willmar, Minnesota (member utility)
City of Worthington, Minnesota (member utility)
Power Repayment Study--Firm Power Service Rate Discussion
A PRS is 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). 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, UGP developed a rate adjustment to demonstrate sufficient
revenues will be collected under the Provisional Formula Rates to meet
future obligations. The Revenue Requirement for P-SMBP is recovered by
both the UGP in the P-SMBP--ED rates and by RM in the Loveland Area
Projects (LAP) rate. The Revenue Requirement and composite rate for P-
SMBP--ED firm power service is 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 P-SED- under P-SED-
P-SMBP firm power service P-SED-F14 as F15 first step First Step F15 second Second step
of Jan. 1, as of Jan. 1, Percent Change step as of percent change
2023 2025 \1\ Jan. 1, 2026
----------------------------------------------------------------------------------------\2\---------------------
Total Revenue Requirement (in $268.4 $288.1 7.4 $306.0 6.2
million $).....................
P-SMBP--ED Composite Rate (mills/ 27.91 30.00 7.5 31.87 6.2
kWh)...........................
----------------------------------------------------------------------------------------------------------------
\1\ Provisional values are estimates only based on using set/final Base and estimated Drought Adder components.
\2\ Provisional values are estimates that may change during the existing annual drought adder adjustment
process.
Firm Power Service--Existing and Provisional Formula Rates
Under the existing and provisional rate methodology, rates for P-
SMBP--ED firm power and firm peaking power services 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 demand
and energy.
Base and Drought Adder Components
As a part of the existing and provisional rate schedules, UGP
provides for a formula-based adjustment
[[Page 91734]]
of the Drought Adder component, with an annual increase of up to 2
mills/kWh. The 2 mills/kWh cap places a limit on the amount the Drought
Adder component can be adjusted upward relative to associated drought
costs included in the Drought Adder formula rate for any 1-year cycle.
The Drought Adder component may be adjusted downward by any amount.
Continuing to identify the firm power service Revenue Requirement using
Base and Drought Adder components will assist the Regions in presenting
future impacts of droughts, demonstrate repayment of drought-related
costs in the PRS, and allow the Regions to be more responsive to
changes caused by drought-related expenses. UGP will continue to charge
and bill its customers firm power and firm peaking power service rates
for energy and demand, which are the sum of the Base and Drought Adder
components.
Under Rate Schedule P-SED-F15, UGP will continue to identify its P-
SMBP--ED firm power service Revenue Requirement using Base and Drought
Adder components. The Base component is a fixed Revenue Requirement
that includes annual O&M, investment and replacement repayment, and
associated interest, Normal Timing Power Purchases, and transmission
costs. UGP cannot adjust the Base component without a public process.
The Drought Adder component is a formula-based Revenue Requirement 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 power 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 FY 2024
would be repaid by FY 2034.
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
The Regions review the inputs for the P-SMBP Base and Drought Adder
components after the annual PRS is complete, generally in the first
quarter of the calendar year. If an adjustment to the P-SMBP Base
component is necessary, or if an incremental upward adjustment to the
P-SMBP PRS Drought Adder component greater than the equivalent of 2
mills/kWh to the P-SMBP Composite Rate is necessary, the Regions 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 component is reviewed annually in early
summer to determine if drought costs differ from those projected in the
PRS. In October, the Regions will determine if a change to the Drought
Adder component is necessary, either incremental or decremental. Any
incremental adjustment to the Drought Adder component, up to 2 mills/
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 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-203 January 2023
rates. 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-203. 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 P-SMBP 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, UGP 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 PRS. 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
Requirement for firm power service are shown in Table 2:
Table 2--Comparison of Existing and Provisional Charge Component Revenue Requirements
----------------------------------------------------------------------------------------------------------------
Provisional Provisional
Existing under under P-SED- under P-SED-
P-SED-F14/ P- F15/ P-SED- F15/ P-SED-
P-SMBP--ED firm power service SED-FP14 as of FP15 first First step FP15 second Second step
Jan. 1, 2023 step as of percent change step as of percent change
(in million $) Jan. 1, 2025 Jan. 1, 2026
\1\ (in \1\ (in
----------------------------------------------------million $)----------------------million $)------------------
Base Component.................. $235.4 $264.5 12.4 $292.4 10.5
Drought Adder Component......... 33.0 23.6 -28.5 13.6 -42.4
----------------------------------------------------------------------------------------------------------------
\1\ Provisional values are estimates that may change during the existing annual Drought Adder adjustment
process.
[[Page 91735]]
A summary of the provisional charge components is shown in Table 3:
Table 3--Summary of Two-Step Provisional Charge Components
----------------------------------------------------------------------------------------------------------------
Provisional charges under rate Provisional charges under rate
schedules P-SED-F15 and P-SED-FP15 schedules P-SED-F15 and P-SED-FP15
first step as of Jan. 1, 2025 second step as of Jan. 1, 2026
-----------------------------------------------------------------------------
Drought Drought
Base adder Total Base adder Total
component component charge \2\ component component charge \2\
\1\ \1\
----------------------------------------------------------------------------------------------------------------
Firm Demand ($/kilowatt-month).... $6.05 $0.55 $6.60 $6.70 $0.30 $7.00
Firm Energy (mills/kWh)........... 15.21 1.34 16.55 16.80 0.80 17.60
Firm Peaking Demand ($/kilowatt- $5.55 $0.50 $6.05 $6.10 $0.30 $6.40
month)...........................
Firm Peaking Energy \3\ (mills/ 15.21 1.34 16.55 16.80 0.80 17.60
kWh).............................
----------------------------------------------------------------------------------------------------------------
\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.
\3\ Firm peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is
not returned.
Statement of Revenue and Related Expenses
The following Table 4 provides a summary of the projected revenue
and expense data for the P-SMBP firm power service Revenue Requirement
through the 5-year provisional rate approval periods:
BILLING CODE 6450-01-P
[GRAPHIC] [TIFF OMITTED] TN20NO24.076
BILLING CODE 6450-01-C
Sale of Surplus Products Rate Discussion
The sale of surplus products rate schedule is formula-based,
providing for P-SMBP--ED Marketing Office to sell P-SMBP--ED surplus
energy and demand products. If P-SMBP--ED surplus products are
available, as specified in the rate schedule, the charge will be based
on market rates plus administrative costs. The customer will be
responsible for acquiring transmission service necessary to deliver the
product(s) for which a
[[Page 91736]]
separate charge may be incurred. Rate Schedule P-SED-M2 is being
superseded by the Provisional Rate Schedule P-SED-M3 and continues to
allow for the sale of energy, frequency response, regulation, and
reserves.
Comments
UGP received 23 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 action agency commented that the rate adjustment is
a $15 million cumulative increase for their member communities. The
member utilities commented that the rate adjustment would have
increases ranging from $30,000 to $490,000 annually in wholesale power
supply costs depending on the customers' Contract Rate of Delivery
(CROD).
Response: WAPA recognizes the magnitude of the increased rate and
its impact on its customers. WAPA is committed to continuing to adapt
to rising industry costs while also providing power and energy to its
customers at the lowest cost possible. WAPA does not take the increase
in costs lightly and is committed to continuing to find ways to limit
the impact of increasing industry costs as much as possible.
B. Comment: The customer association, member utilities, 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 14 percent 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.
C. Comment: The customer association, member utilities, 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.
D. 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 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.
E. 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.
F. 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 the issues concerning the firm power
rate.
Certification of Rates
I have certified that the Provisional Formula Rates for P-SMBP--ED
firm power service under Rate Schedule P-SED-F15, P-SMBP--ED firm
peaking power service under Rate Schedule P-SED-FP15, and P-SMBP--ED
sale of surplus products under Rate Schedule P-SED-M3 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 UGP to develop the Provisional Formula Rates is
available for inspection and copying at the Upper Great Plains Regional
Office located at 2900 4th Avenue North, 6th Floor, Billings, Montana.
Many of these documents are also available on UGP's Rates website at:
www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this action fits within the following
categorical exclusions 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/2024/08/Rate-order-drought-adder-and-base-component-increases-for-2025-and-2026-CX-08302024.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-213. The rates will remain in effect on an interim
basis until: (1) FERC
[[Page 91737]]
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 P-SED-F15
(Supersedes Schedule P-SED-F14)
United States Department of Energy
Western Area Power Administration
Upper Great Plains Region
Pick-Sloan Missouri Basin Program--Eastern Division
Firm Power Service
(Approved Under Rate Order No. WAPA-213)
Effective
First Step: Beginning on the first day of 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, through December 31,
2029, or until superseded by another rate schedule, whichever occurs
earlier.
Available
Within the marketing area served by the Eastern Division of the
Pick-Sloan Missouri Basin Program; within Montana, North Dakota, South
Dakota, Minnesota, Iowa, and Nebraska.
Applicable
To the power and energy delivered to customers as firm power
service, as established in the contract for service.
Character
Alternating current, 60 hertz, three phase, delivered and metered
at the voltages and points established by contract.
Formula Rate and Charge Components
Rate = Base component + Drought Adder component
----------------------------------------------------------------------------------------------------------------
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\
----------------------------------------------------------------------------------------------------------------
Firm Demand Charge ($/kilowatt- $6.05 $0.55 $6.60 $6.70 $0.30 $7.00
month)...........................
Firm Energy Charge (mills/kWh).... 15.21 1.34 16.55 16.80 0.80 17.60
----------------------------------------------------------------------------------------------------------------
\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.
Billing Demand: The billing demand will be as defined by the power
sales contract.
Charge Components
Base Component: A fixed revenue requirement that includes operation
and maintenance expense, investments and replacements, interest on
investments and replacements, normal timing purchase power (purchases
due to operational constraints, not associated with drought), and
transmission costs. Any provisional change to the Base component will
require a public process.
[GRAPHIC] [TIFF OMITTED] TN20NO24.077
Drought Adder Component: A formula-based revenue requirement that
includes future purchase power expense above timing purchases, previous
purchase power drought deficits, and interest on the purchase power
drought deficits. The second step revenue requirement is subject to
change during the annual Drought Adder adjustment process starting in
January 2026.
[[Page 91738]]
[GRAPHIC] [TIFF OMITTED] TN20NO24.078
Annual Drought Adder Adjustment Process
The Drought Adder 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 Power Repayment Study (PRS) composite
rate. Any planned incremental upward adjustment to the Drought Adder
greater than the equivalent of 2 mills/kWh to the PRS composite rate
will require a public process.
The annual review process is initiated in early summer when WAPA
reviews the Drought Adder component and provides notice of any
estimated change to the Drought Adder component charge under the
formula. In October, WAPA 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. WAPA will inform customers of
updates by letter and post updates to WAPA's external website.
Adjustments
For Billing of Unauthorized Overruns: For each billing period in
which there is a contract violation involving an unauthorized overrun
of the contractual firm power and/or energy obligations, such overrun
shall be billed at 10 times the formula rate.
For Power Factor: None. Customers will be required to maintain a
power factor at the point of delivery between 95-percent lagging and
95-percent leading.
Rate Schedule P-SED-FP15
(Supersedes Schedule P-SED-FP14)
United States Department of Energy
Western Area Power Administration
Upper Great Plains Region
Pick-Sloan Missouri Basin Program--Eastern Division
Firm Peaking Power Service
(Approved Under Rate Order No. WAPA-213)
Effective
First Step: Beginning on the first day of 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, through December 31,
2029, or until superseded by another rate schedule, whichever occurs
earlier.
Available
Within the marketing area served by the Eastern Division of the
Pick-Sloan Missouri Basin Program; within Montana, North Dakota, South
Dakota, Minnesota, Iowa, and Nebraska.
Applicable
To the power sold to customers as firm peaking power service, as
established in the contract for service.
Character
Alternating current, 60 hertz, three phase, delivered and metered
at the voltages and points established by contract.
Formula Rate and Charge Components
Rate = Base component + Drought Adder component
----------------------------------------------------------------------------------------------------------------
First step January 1, 2025 monthly Second step January 1, 2026 monthly
charges charges
-----------------------------------------------------------------------------------
Drought
Base Drought Base adder Total charge
component adder Total charge component component \2\
component \1\
----------------------------------------------------------------------------------------------------------------
Firm Peaking Demand Charge $5.55 $0.50 $6.05 $6.10 $0.30 $6.40
($/kilowatt-month).........
----------------------------------------------------------------------------------------------------------------
\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 component.
Charge Components
Base Component: A fixed revenue requirement that includes operation
and maintenance expense, investments and replacements, interest on
investments and replacements, normal timing purchase power (purchases
due to operational constraints, not associated with drought), and
transmission costs. Any provisional change to the Base component will
require a public process.
[GRAPHIC] [TIFF OMITTED] TN20NO24.079
[[Page 91739]]
Drought Adder Component: A formula-based revenue requirement that
includes future purchase power above timing purchases, previous
purchase power drought deficits, and interest on the purchase power
drought deficits. The second step revenue requirement is subject to
change during the annual Drought Adder adjustment processes starting in
January 2026.
[GRAPHIC] [TIFF OMITTED] TN20NO24.080
Annual Drought Adder Adjustment Process
The Drought Adder 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 Power Repayment Study (PRS) composite
rate. Any planned incremental upward adjustment to the Drought Adder
greater than the equivalent of 2 mills/kWh to the PRS composite rate
will require a public process.
The annual review process is initiated in early summer when WAPA
reviews the Drought Adder component and provides notice of any
estimated change to the Drought Adder component charge under the
formula. In October, WAPA 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. WAPA will inform customers of
updates by letter and post updates to WAPA's external website.
Billing Demand
The billing demand will be the greater of (1) the highest 30-minute
integrated demand measured during the month up to, but not in excess
of, the delivery obligation under the power sales contract, or (2) the
contract rate of delivery.
Adjustments
For Billing for Unauthorized Overruns: For each billing period in
which there is a contract violation involving an unauthorized overrun
of the contractual obligation for peaking demand and/or energy, such
overrun shall be billed at 10 times the above rate.
Rate Schedule P-SED-M3
(Supersedes Rate Schedule P-SED-M2)
United States Department of Energy
Western Area Power Administration
Upper Great Plains Region
Pick-Sloan Missouri Basin Program--Eastern Division
Sale of Surplus Products
(Approved Under Rate Order No. WAPA-213)
Effective
The first day of the first full billing period beginning on or
after January 1, 2025, through December 31, 2029, or until superseded
by another rate schedule, whichever occurs earlier.
Applicable
This rate schedule applies to Eastern Division of the Pick-Sloan
Missouri Basin Program marketing and is applicable to the sale of the
following P-SMBP--ED surplus energy and capacity products: energy,
frequency response, regulation, and reserves. If any P-SMBP--ED surplus
energy and capacity products are available, UGP can make the product(s)
available for sale, providing entities enter into a separate
agreement(s) with UGP Marketing Office which will specify the terms of
sale(s).
Formula Rate
The charge for each product is determined at the time of the sale
based on market rates, plus administrative costs. The customer will be
responsible for acquiring transmission services necessary to deliver
the product(s), for which a separate charge may be incurred.
[FR Doc. 2024-26933 Filed 11-19-24; 8:45 am]
BILLING CODE 6450-01-P
