Notice2021-17747
Notice of Interim Approval of Rate Schedules for Jim Woodruff Project
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 19, 2021
Effective
October 1, 2021
Issuing agencies
Energy DepartmentSoutheastern Power Administration
Abstract
The Administrator for the Southeastern Power Administration (Southeastern) has confirmed and approved, on an interim basis, rate schedules JW-1-L and JW-2-F for the sale of power from the Jim Woodruff Project. The rate schedules are approved on an interim basis through September 30, 2026, and are subject to confirmation and approval by the Federal Energy Regulatory Commission (FERC) on a final basis.
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 158 (Thursday, August 19, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 158 (Thursday, August 19, 2021)]
[Notices]
[Pages 46698-46701]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17747]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southeastern Power Administration
Notice of Interim Approval of Rate Schedules for Jim Woodruff
Project
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of interim approval.
-----------------------------------------------------------------------
SUMMARY: The Administrator for the Southeastern Power Administration
(Southeastern) has confirmed and approved, on an interim basis, rate
schedules JW-1-L and JW-2-F for the sale of power from the Jim Woodruff
Project. The rate schedules are approved on an interim basis through
September 30, 2026, and are subject to confirmation and approval by the
Federal Energy Regulatory Commission (FERC) on a final basis.
DATES: The approval of rates on an interim basis is effective October
1, 2021.
FOR FURTHER INFORMATION CONTACT: Samuel W. Loggins, Assistant
Administrator, Finance and Marketing, Southeastern Power
Administration, U.S. Department of Energy, 1166 Athens Tech Road,
Elberton, GA 30635-6711, (706) 213-3805; Email:
<a href="/cdn-cgi/l/email-protection#b5e6d4d8c0d0d99bf9dad2d2dcdbc6f5c6d0c5d49bd1dad09bd2dac3"><span class="__cf_email__" data-cfemail="0754666a72626b294b6860606e697447746277662963686229606871">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: FERC, by order issued October 20, 2016, 157
FERC ] 62,043, confirmed and approved Rate Schedules JW-1-K and JW-2-F
for the period October 1, 2016 through September 30, 2021. This order
replaces these rate schedules on an interim basis, subject to final
approval by FERC.
Department of Energy
Administrator, Southeastern Power Administration
In the Matter of:
Southeastern Power Administration
Rate Order No. SEPA-65
Jim Woodruff Project Power Rates
Order Confirming and Approving Power Rates on an Interim Basis
Pursuant to Section 302(a) of the Department of Energy Organization
Act (Pub. L. 95-91, 42 U.S.C. 7152(a)), the functions of the Secretary
of the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944 (16 U.S.C. 825s), relating to the
Southeastern Power Administration (Southeastern), were transferred to
and vested in the Secretary of Energy. By Delegation Order No. 00-
037.00B, effective November 19, 2016, the Secretary of Energy delegated
to the Administrator, Southeastern Power Administration, the authority
to develop power and transmission rates, to the Deputy Secretary of
Energy the authority to confirm, approve, and place such rates into
effect on an interim basis, and to the Federal Energy Regulatory
Commission (FERC) the authority to confirm, approve, and place into
effect on a final basis, or to disapprove, rates developed by the
Administrator under the delegation. By Delegation Order No. S1-DEL-S4-
2021, effective February 25, 2021, the Acting 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 Science (and
Energy). By Redelegation Order No. S4-DEL-OE1-2021, effective March 25,
2021, the Acting Under Secretary for Science (and Energy) redelegated
the authority to confirm, approve, and place such rates into effect on
an interim basis to the Assistant Secretary for Electricity. By
Redelegation Order No. 00-002.10-03, effective July 8, 2020, the
Assistant Secretary for Electricity further redelegated the authority
to confirm, approve, and place such rates into effect on an interim
basis to the Administrator, Southeastern Power Administration. This
last redelegation, despite predating the February 2021 delegation and
March 2021 redelegation, remains valid. This rate is confirmed,
approved, and placed into effect on an interim basis by the
Administrator, Southeastern Power Administration, pursuant to the
authority delegated in Redelegation Order No. 00-002.10-03.
Background
Power from the Jim Woodruff Project is presently sold under
Wholesale Power Rate Schedules JW-1-K and JW-2-F. These rate schedules
were approved by FERC on October 20, 2016, for a period ending
September 30, 2021 (157 FERC ] 62,043).
Public Notice and Comment
Notice of a proposed rate adjustment and opportunities for public
review and comment for the Jim Woodruff Project was published in the
Federal Register (86 FR 16717) on March 31, 2021. Southeastern proposed
an increase and to extend existing schedules of rates and charges
applicable to the sale of power from the Jim Woodruff Project to become
effective October 1, 2021, through September 30, 2026. The notice
advised interested parties that a public information and comment forum
for this rate action would be held virtually by Microsoft Teams Meeting
on May 11, 2021. Written comments were due on or before June 29, 2021.
The proposed rate schedule JW-1-L would increase the capacity
charge from $7.74 per kilowatt per month to $8.46 per kilowatt per
month. The energy charge would be increased from 20.44 mills per
kilowatt-hour to 22.32 mills per kilowatt-hour. In addition to the
capacity and energy charges, each preference customer would continue to
be charged for power purchased by Southeastern on behalf of the
preference customer. This pass-through would continue to be computed as
described in the current rate schedules.
Rate schedule JW-2-F, available to Duke Energy Florida (DEF), would
continue the current rate of 100 percent of DEF's fuel cost.
Public Comments
Southeastern received oral comments from two participants as part
of the public information and comment forum on May 11, 2021.
Southeastern received one written response to the ``Notice of proposed
rates, public forum, and opportunities for public review and comment''
published in the Federal Register at 86 FR 16717 on March 31, 2021.
Oral Comment: [Commenter 1] I know that when we reviewed a lot of
the revenue requirements--it's been a little over a month ago, the Jim
Woodruff customers were very satisfied with the staff's presentations
and the--all of the questions were answered in a satisfactory manner,
so we have no follow-up questions at this time.
Oral Comment: [Commenter 2] A couple of questions. I believe it was
stated earlier that there was a 7 percent drop in repayment from 2016
to 2020. Is that a simple function of revenues being insufficient due
to low water years? Is there a sense in terms of why that--the
repayment was off by 7 percent?
Oral Response: No, that is just the straight percentage when we
compared what we used as estimates in the last rate adjustment study
from 2016. We compared FY16 through FY20 estimates with the actuals,
and that was just kind of an indication of the difference in what we
estimated repayment to be with what was actually repaid.
Oral Comment: [Commenter 2] And then looking at the SEPA marketing
expense, we note that there's a 13 percent increase between 2019 to
2020. If you compare 2019 through 2021, you have a 15 percent increase
in the SEPA
[[Page 46699]]
marketing expense. Can you identify what's the cause of that in terms
of SEPA's marketing expense?
Oral Response: Not at this time, but if you would email that
question in, I could look into the details, but I don't have any
detailed information for SEPA's expense right now. We can supplement
the record later on with that response.
Oral Comment: [Commenter 2] I think if you look at form Exhibit 9,
that's where we see--between 2019 and 2020, we had a--it's a pretty
good jump there. Now, that could be a function of SEPA's expenses
increasing because of remote work obligations, so there-- anticipate
there's a logical explanation there.
Oral Response: Yes. I just--I don't have the detailed breakdown of
SEPA's expenses to tell you what area that would be in. But I will
answer for the record.
Oral Comment: [Commenter 2] the other thing that I think we would
note from a customer perspective is that we continue to monitor the
amount of expense that is allocated as the joint O&M expense, and that
continues to be a little bit of a concern in terms of whether costs are
appropriately accounted for, for purposes of what hydropower should be
bearing. We know that SEPA has been devoting a lot of energy to trying
to make sure that the Corps is properly accounting for these expenses,
so we support SEPA's efforts in this regard.
Oral Response: And we fully continue those efforts and hopefully we
will accomplish some savings for the customers.
Combined Unanswered Oral Comments from Forum: And then looking at
the SEPA marketing expense, we note that there's a 13 percent increase
between 2019 to 2020. If you compare 2019 to 2021, you have a 15
percent increase in SEPA marketing expense. Can you identify what's the
cause of that in terms of SEPA's marketing expense?
Response for the Record Submitted to Customers May 24, 2021: The
change in SEPA marketing expense between Fiscal Years 2019 and 2020 is
$18,000 for the Woodruff System. SEPA has identified just over $17,100
of the $18,000 as attributable to increases in Salaries, Benefits and
Outside Contract Services. The increases are due to the transition of
SEPA's Power System Dispatchers pay plan from the General Schedule to
an Administratively Determined plan and a pay raise to the General
Schedule federal employees. The cost of a survey for the
Administratively Determined pay plan was charged to Outside Contract
Services along with the annual financial audit and a cleaning service
contract.
The change between Fiscal Years 2019 and 2021 of 15 percent is
attributable to the 13 percent increase in Fiscal Year 2020 and the
projected expense for Fiscal Year 2021 being calculated by using the
federal budgetary inflation factor of 2 percent for future years.
Written Comment: The SeFPC supports the rate as proposed by the
Southeastern Power Administration (``SEPA'').
While we believe that the rate fully captures costs associated with
hydropower production, we nonetheless encourage SEPA to work with the
U.S. Army Corps of Engineers (``Corps'') to ensure that joint operation
and maintenance expenses do not include costs that should be assigned
solely to project purposes unrelated to hydropower production. SEPA's
continued diligence in working with the Corps will help ensure that
rates remain as low as possible consistent with sound business
principles.
Response: Southeastern continues to work with preference customers
and the Corps to review operation and maintenance actual costs and
estimates to ensure accuracy of cost assignment and projections to
establish the lowest possible rates consistent with sound business
principles within the meaning of Section 5 of the Flood Control Act of
1944.
Discussion
System Repayment
An examination of the Southeastern revised system power repayment
study, prepared in March of 2021 for the Jim Woodruff Project, shows
that with the proposed rates, all system power costs are paid within
the appropriate repayment period and meet the cost recovery criteria
set forth in DOE Order RA 6120.2. The Administrator of Southeastern
Power Administration has certified that the rates are consistent with
applicable law and that they are the lowest possible rates to customers
consistent with sound business principles.
Legal Authority
By Delegation Order No. 00-037.00B, effective November 19, 2016,
the Secretary of Energy delegated to the Administrator, Southeastern
Power Administration the authority to develop power and transmission
rates, to the Deputy Secretary of Energy the authority to confirm,
approve, and place such rates into effect on an interim basis, and to
the Federal Energy Regulatory Commission (FERC) the authority to
confirm, approve, and place into effect on a final basis, or to
disapprove, rates developed by the Administrator under the delegation.
By Delegation Order No. S1-DEL-S4-2021, effective February 25, 2021,
the Acting 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 Science (and Energy). By Redelegation Order No. S4-
DEL-OE1-2021, effective March 25, 2021, the Acting Under Secretary for
Science (and Energy) redelegated the authority to confirm, approve, and
place such rates into effect on an interim basis to the Assistant
Secretary for Electricity. By Redelegation Order No. 00-002.10-03,
effective July 8, 2020, the Assistant Secretary for Electricity further
redelegated the authority to confirm, approve, and place such rates
into effect on an interim basis to the Administrator, Southeastern
Power Administration. This last redelegation, despite predating the
February 2021 delegation and the March 2021 redelegation, remains
valid. This rate is confirmed, approved, and placed into effect on an
interim basis by the Administrator, Southeastern Power Administration,
pursuant to the authority delegated in Redelegation Order No. 00-
002.10-03.
Environmental Impact
Southeastern has reviewed the possible environmental impacts of the
rate adjustment under consideration and has concluded that, because the
adjusted rates would not significantly affect the quality of the human
environment within the meaning of the National Environmental Policy Act
of 1969, as amended, the proposed action is not a major Federal action
for which preparation of an Environmental Impact Statement is required.
Determination Under Executive Order 12866
Southeastern 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.
Availability of Information
Information regarding these rates, including studies, and other
supporting materials, is available for public review in the offices of
Southeastern Power Administration, 1166 Athens Tech Road, Elberton,
Georgia 30635-6711.
Order
In view of the foregoing and pursuant to the authority redelegated
to me by the
[[Page 46700]]
Assistant Secretary for Electricity, I hereby confirm and approve on an
interim basis, effective October 1, 2021, attached Wholesale Power Rate
Schedules JW-1-L and JW-2-F. The rate schedules shall remain in effect
on an interim basis through September 30, 2026, unless such period is
extended or until FERC confirms and approves them or substitute rate
schedules on a final basis.
Signing Authority
This document of the Department of Energy was signed on August 12,
2021, by Virgil G. Hobbs III, Administrator for Southeastern 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 August 13, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
Wholesale Power Rate Schedule JW-1-L
Availability
This rate schedule shall be available to public bodies and
cooperatives served by Duke Energy Florida and having points of
delivery within 150 miles of the Jim Woodruff Project (hereinafter
called the Project).
Applicability
This rate schedule shall be applicable to firm power and
accompanying energy made available by the Government from the Project
and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 cycles per
second delivered at the delivery points of the customer.
Monthly Rate
The monthly rate for capacity and energy made available or
delivered under this rate schedule shall be:
Demand Charge:
$8.46 per kilowatt of monthly contract demand.
Energy Charge: 22.32 mills per kilowatt-hour.
Purchased Power Pass-Through
In addition to the capacity and energy charges, each preference
customer will be charged for power purchased by Southeastern on behalf
of the preference customer. This pass-through will be computed as
follows:
Each month, Duke Energy Florida provides Southeastern with the
meter readings for preference customers' delivery points that have
an allocation of capacity from Southeastern. Subsequently, Duke
Energy Florida provides Southeastern with reports of purchased power
and support capacity requirements around the 10th of the succeeding
month. Southeastern computes its purchased power obligation for each
delivery point monthly. Southeastern computes any revenue from sales
to Duke Energy Florida for each delivery point monthly. Southeastern
sums the purchased power obligation and any revenue from sales to
Duke Energy Florida for each preference customer monthly. The
purchased power obligation minus any revenue from sales to Duke
Energy Florida for each customer is called the Net Purchased Power
Cost. Southeastern charges each customer its respective monthly Net
Purchased Power Cost in equal portions over the next eleven billing
months.
Billing Demand
The monthly billing demand for any billing month shall be the lower
of (a) the Customer's contract demand or (b) the sum of the maximum 30-
minute integrated demands for the month at each of the Customer's
points of delivery; provided, that, if an allocation of contract demand
to delivery points has become effective, the 30-minute maximum
integrated demand for any point of delivery shall not be considered to
be greater than the portion of the Customer's contract demand allocated
to that point of delivery.
Contract Demand
The contract demand is the amount of capacity in kilowatts stated
in the contract which the Government is obligated to supply and the
Customer is entitled to receive.
Energy Made Available
During any billing month in which the Government supplies all the
Customer's capacity requirements for a particular delivery point, the
Government will make available the total energy requirement of said
point. When both the Government and Duke Energy Florida are supplying
capacity to a delivery point, each kilowatt of capacity supplied to
such point during such month will be considered to be accompanied by an
equal quantity of energy.
Billing Month
The billing month for power sold under this schedule shall end at
12:00 midnight on the last day of each calendar month.
Conditions of Service
The customer shall, at its own expense, provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment, and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of Duke Energy Florida on its side of
the delivery point.
Service Interruption
When energy delivered to the Customer's system for the account of
the Government is reduced or interrupted for one hour or longer, and
such reduction or interruption is not due to conditions on the
Customer's system or has not been planned and agreed to in advance, the
demand charge for the month shall be appropriately reduced.
October 1, 2021
Wholesale Power Rate Schedule JW-2-F
Availability
This rate schedule shall be available to Duke Energy Florida
(formerly known as Florida Power Corporation, and hereinafter called
the Company).
Applicability
This rate schedule shall be applicable to electric energy generated
at the Jim Woodruff Project (hereinafter called the Project) and sold
to the Company in wholesale quantities.
Points of Delivery
Power sold to the Company by the Government will be delivered at
the connection of the Company's transmission system with the Project
bus.
Character of Service
Electric power delivered to the Company will be three-phase
alternating current at a nominal frequency of 60 cycles per second.
Monthly Rate
The monthly rate for energy sold under this schedule shall be equal
to 100 percent of the calculated saving in
[[Page 46701]]
the cost of fuel per kWh to the Company determined as follows:
[GRAPHIC] [TIFF OMITTED] TN19AU21.000
[Computed to the nearest $0.00001 (1/100mill) per kWh]
Where:
Fm = Company fuel cost in the current period as defined in Federal
Power Commission Order 517 issued November 13, 1974, Docket No. R-
479.
Sm = Company sales in the current period reflecting only losses
associated with wholesale sales for resale. Sale shall be equated to
the sum of (a) generation, (b) purchases, (c) interchange-in, less
(d) inter-system sales, less estimated wholesale losses (based on
average transmission loss percentage for preceding calendar year).
Determination of Energy Sold
Energy will be furnished by the Company to supply any excess of
Project use over Project generation. Energy so supplied by the Company
will be deducted from the actual deliveries to the Company's system to
determine the net deliveries for energy accounting and billing
purposes. Energy for Project use shall consist of energy used for
station service, lock operation, Project yard, village lighting, and
similar uses.
The on-peak hours shall be the hours between 7:00 a.m. and 11:00
p.m., Monday through Sunday, inclusive. Off-peak hours shall be all
other hours.
All energy made available to the Company shall, to the extent
required, be classified as energy transmitted to the Government's
preference customers served from the Company's system. All energy made
available to the Company from the Project shall be separated on the
basis of the metered deliveries to it at the Project during on-peak and
off-peak hours, respectively. Deliveries to preference customers of the
Government shall be divided on the basis (with allowance for losses) of
77 percent being considered as on-peak energy and 23 percent being off-
peak energy. Such percentages may by mutual consent be changed from
time to time as further studies show to be appropriate. In the event
that in classifying energy there is more than enough on-peak energy
available to supply on-peak requirements of the Government's preference
customers but less than enough off-peak energy available to supply such
customers' off-peak requirements, such excess on-peak energy may be
applied to the extent necessary to meet off-peak requirements of such
customers in lieu of purchasing deficiency energy to meet such off-peak
requirements.
Billing Month
The billing month under this schedule shall end at 12:00 midnight
on the last day of each calendar month.
Power Factor
The purchaser and seller under this rate schedule agree that they
will both so operate their respective systems that neither party will
impose an undue reactive burden on the other.
October 1, 2021.
[FR Doc. 2021-17747 Filed 8-18-21; 8:45 am]
BILLING CODE 6450-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on August 19, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.