Boulder Canyon Project-Rate Order No. WAPA-178
Western Area Power Administration (WAPA) is proposing to update the rate-setting formulas for electric service for the Boulder Canyon Project (BCP) under proposed Rate Schedule BCP-F10, and adjust the annual calculation for the fiscal year (FY) 2018 base charge and rates. The expiration of the current base charge and rates on September 30, 2017, and beginning of the new 50-year marketing period on October 1, 2018, require these actions. The current base charge under Rate Schedule BCP-F9 is not sufficient to cover all annual costs including operation and maintenance, replacements, and interest expense; and repay investment obligations within the allowable period. After collaborating with the BCP contractors, WAPA proposes an FY 2018 base charge that includes a one-time $15 million working capital fund primarily for the Bureau of Reclamation (Reclamation) for the new marketing period. The FY 2019 base charge is expected to decrease by $15 million after the collection of working capital in FY 2018. The proposed base charge will provide sufficient revenue to cover all annual costs and repay investment obligations within the allowable period. WAPA will post proposed Rate Schedule BCP-F10 and a detailed rate package that identifies the reasons for the base charge and rates adjustment on its Web site during the consultation and comment period. The proposed base charge and rates are scheduled to become effective on October 1, 2017, and will remain in effect through September 30, 2018. Publication of this Federal Register notice initiates the formal public process to implement the proposed rate-setting formulas and the FY 2018 base charge and rates.