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Notice2021-18611

Desert Southwest Region and Western Area Lower Colorado Balancing Authority-Rate Order No. WAPA-200

Primary source

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Published

August 30, 2021

Effective

October 1, 2021

Issuing agencies

Energy Department

Abstract

The extension of the existing Western Area Power Administration (WAPA), Desert Southwest Region (DSW) formula rates for Network Integration Transmission Service (Network) on the Parker-Davis Project and Pacific Northwest-Pacific Southwest Intertie Project, along with formula rates for ancillary services, transmission losses, and unreserved use penalties applicable to Western Area Lower Colorado Balancing Authority (WALC), has been confirmed, approved, and placed into effect on an interim basis. The existing formula rates under Rate Schedules PD-NTS4 (Network), INT-NTS4 (Network), DSW-SD4 (Scheduling, System Control, and Dispatch), DSW-RS4 (Reactive Supply and Voltage Control), DSW-FR4 (Regulation and Frequency Response), DSW-EI4 (Energy Imbalance), DSW-SPR4 (Spinning Reserve), DSW-SUR4 (Supplemental Reserve), DSW-GI2 (Generator Imbalance), DSW-TL1 (Transmission Losses), and DSW-UU1 (Unreserved Use Penalties) are set to expire on September 30, 2021. This rate extension makes no changes to the existing formula rates and extends them through September 30, 2026.

Full Text

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[Federal Register Volume 86, Number 165 (Monday, August 30, 2021)]
[Notices]
[Pages 48410-48417]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-18611]

[[Page 48410]]

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DEPARTMENT OF ENERGY

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority--Rate Order No. WAPA-200

AGENCY: Western Area Power Administration, Energy (DOE).

ACTION: Notice of rate order extending formula rates.

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SUMMARY: The extension of the existing Western Area Power
Administration (WAPA), Desert Southwest Region (DSW) formula rates for
Network Integration Transmission Service (Network) on the Parker-Davis
Project and Pacific Northwest-Pacific Southwest Intertie Project, along
with formula rates for ancillary services, transmission losses, and
unreserved use penalties applicable to Western Area Lower Colorado
Balancing Authority (WALC), has been confirmed, approved, and placed
into effect on an interim basis. The existing formula rates under Rate
Schedules PD-NTS4 (Network), INT-NTS4 (Network), DSW-SD4 (Scheduling,
System Control, and Dispatch), DSW-RS4 (Reactive Supply and Voltage
Control), DSW-FR4 (Regulation and Frequency Response), DSW-EI4 (Energy
Imbalance), DSW-SPR4 (Spinning Reserve), DSW-SUR4 (Supplemental
Reserve), DSW-GI2 (Generator Imbalance), DSW-TL1 (Transmission Losses),
and DSW-UU1 (Unreserved Use Penalties) are set to expire on September
30, 2021. This rate extension makes no changes to the existing formula
rates and extends them through September 30, 2026.

DATES: The extended formula rates under Rate Schedules PD-NTS4, INT-
NTS4, DSW-SD4, DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, DSW-GI2,
DSW-TL1, and DSW-UU1 will be placed into effect on an interim basis on
October 1, 2021.

FOR FURTHER INFORMATION CONTACT: Jack D. Murray, Acting Regional
Manager, Desert Southwest Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-6457, telephone 602-605-2525, or
email: <a href="/cdn-cgi/l/email-protection#ff9b8c888f888d928d94bf889e8f9ed1989089"><span class="__cf_email__" data-cfemail="791d0a0e090e0b140b12390e180918571e160f">[email&#160;protected]</span></a>, or Tina Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power Administration, telephone 602-602-
2565, or email: <a href="/cdn-cgi/l/email-protection#5022313d23352910273120317e373f26"><span class="__cf_email__" data-cfemail="7406151907110d34031504155a131b02">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: WAPA published a Federal Register notice
(Proposed FRN) on July 8, 2021 (86 FR 36133), proposing to extend the
existing formula rates under Rate Schedules PD-NTS4, INT-NTS4, DSW-SD4,
DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, DSW-GI2, DSW-TL1, and
DSW-UU1 for October 1, 2021, through September 30, 2026. The Proposed
FRN also initiated a 15-day public consultation and comment period.

Legal Authority

By Delegation Order No. 00-037.00B, 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, remand, or disapprove
such rates to the Federal Energy Regulatory Commission (FERC). 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. 00-002.10-05,
effective July 8, 2020, the Assistant Secretary for Electricity further
delegated the authority to confirm, approve, and place such rates into
effect on an interim basis to the WAPA Administrator. This redelegation
order, despite predating the February 2021 delegation and March 2021
redelegation, remains valid. This rate action is issued under
Redelegation Order No. 00-002.10-05 and Department of Energy procedures
for public participation in rate adjustments set forth at 10 CFR part
903.\1\
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\1\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Following review of DSW's proposal, I hereby confirm, approve, and
place Rate Order No. WAPA-200 into effect on an interim basis. This
extends, without adjustment, the existing Rate Schedules PD-NTS4, INT-
NTS4, DSW-SD4, DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, DSW-GI2,
DSW-TL1, and DSW-UU1 through September 30, 2026. WAPA will submit Rate
Order No. WAPA-200 and the extended rate schedules 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 Extension for
the Desert Southwest Region Transmission and Ancillary Services Formula
Rates
Rate Order No. WAPA-200

Order Confirming, Approving, and Placing Formula Rates for Transmission
Service, Ancillary Services, Transmission Losses, and Unreserved Use
Penalties Into Effect on an Interim Basis

The formula rates in Rate Order No. WAPA-200 are established
following section 302 of the Department of Energy (DOE) Organization
Act (42 U.S.C. 7152).\2\
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\2\ 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 other acts that specifically apply to the projects
involved.
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By Delegation Order No. 00-037.00B, 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 on a final basis,
remand, or disapprove such rates to the Federal Energy Regulatory
Commission (FERC). 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. 00-002.10-05, effective July 8, 2020, the
Assistant Secretary for Electricity further delegated the authority to
confirm, approve, and place such rates into effect on an interim basis
to the WAPA Administrator. This redelegation order, despite predating
the February 2021 delegation and March 2021 redelegation, remains
valid. This extension is issued under Redelegation Order No. 00-002.10-
05 and

[[Page 48411]]

Department of Energy rate extension procedures set forth at 10 CFR part
903(a).\3\
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\3\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Background

On January 12, 2017, FERC confirmed and approved Rate Schedules PD-
NTS4 (Network), INT-NTS4 (Network), DSW-SD4 (Scheduling, System
Control, and Dispatch), DSW-RS4 (Reactive Supply and Voltage Control),
DSW-FR4 (Regulation and Frequency Response), DSW-EI4 (Energy
Imbalance), DSW-SPR4 (Spinning Reserve), DSW-SUR4 (Supplemental
Reserve), DSW-GI2 (Generator Imbalance), DSW-TL1 (Transmission Losses),
and DSW-UU1 (Unreserved Use Penalties) under Rate Order No. WAPA-175 on
a final basis for a 5-year period through September 30, 2021.\4\ These
rate schedules apply to Parker-Davis Project and Pacific Northwest-
Pacific Southwest Intertie Project network integration transmission
service, along with transmission losses, unreserved use penalties, and
ancillary services from WAPA's Desert Southwestern Region (DSW) and
Western Area Lower Colorado Balancing Authority (WALC). The existing
formula rates for these services provide adequate revenue to recover
all expenses incurred for providing each service. This ensures
repayment within the cost recovery criteria set forth in DOE Order RA
6120.2.
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\4\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket Nos. EF16-6-000 and EF16-6-001, 158 FERC ] 62,027
(2017).
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Discussion

In accordance with 10 CFR 903.23(a), WAPA filed a notice in the
Federal Register on July 8, 2021, proposing to extend, without
adjustment, Rate Schedules PD-NTS4, INT-NTS4, DSW-SD4, DSW-RS4, DSW-
FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, DSW-GI2, DSW-TL1, and DSW-UU1 under
Rate Order No. WAPA-200.\5\ WAPA determined it was not necessary to
hold public information or public comment forums on the proposed
formula rate extension, but provided a 15-day consultation and comment
period to give the public an opportunity to comment on the proposed
extension. The consultation and comment period ended on July 23, 2021,
and WAPA received no comments on the proposed formula rate extension.
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\5\ 86 FR 36133 (July 8, 2021).
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Ratemaking Procedure Requirements

Environmental Compliance

WAPA determined that this action fits within the class listed in
Appendix B to Subpart D of 10 CFR part 1021.410: Categorical exclusions
applicable to B4.3: Electric power marketing rate changes and B4.4:
Power marketing services and activities, do not require preparation of
either an environmental impact statement (EIS) or an environmental
assessment (EA).\6\ A copy of the categorical exclusion determination
is available on WAPA's website at <a href="https://www.wapa.gov/regions/DSW/Environment/Pages/environment.aspx">https://www.wapa.gov/regions/DSW/Environment/Pages/environment.aspx</a>. Look for file entitled, ``Proposed
Formula Rates for Network Integration Transmission Service and
Ancillary Services.''
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\6\ The determination was done in compliance with the National
Environmental Policy Act (NEPA) of 1969, as amended, 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-200, which extends the existing Network, ancillary
services, transmission losses, and unreserved use penalties formula
rates under Rate Schedules PD-NTS4, INT-NTS4, DSW-SD4, DSW-RS4, DSW-
FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, DSW-GI2, DSW-TL1, and DSW-UU1 through
September 30, 2026. The formula rates will remain in effect on an
interim basis until: (1) FERC confirms and approves of this extension
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 August 20,
2021, by Tracey A. LeBeau, Interim 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 August 25, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

Rate Schedule PD-NTS4

ATTACHMENT H to Tariff

(Supersedes Rate Schedule PDP-NTS3 dated October 1, 2016, through
September 30, 2021)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Parker-Davis Project

Network Integration Transmission Service

(Approved Under Rate Order No. WAPA-175)

Effective

The first day of the first full billing period beginning on or
after October 1, 2016, and extending through September 30, 2021, or
until superseded by another rate schedule, whichever occurs earlier.
[Note: This rate schedule was extended by Rate Order No. WAPA-200
through September 30, 2026.]

Applicable

Transmission customers will compensate the Parker-Davis Project
each month for Network Integration Transmission Service (Network) under
the applicable Network Agreement and the formula rate described herein.

Formula Rate

[[Page 48412]]

[GRAPHIC] [TIFF OMITTED] TN30AU21.000

Based on the formula rate, the Annual Transmission Revenue
Requirement (ATRR) will be calculated for each fiscal year using
updated financial data. The ATRR will be effective on October 1st of
each year and posted on the Western Area Lower Colorado Balancing
Authority website.

Rate Schedule INT-NTS4

ATTACHMENT H to Tariff

(Supersedes Rate Schedule INT-NTS3 dated October 1, 2016, through
September 30, 2021)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Pacific Northwest-Pacific Southwest Intertie Project

Network Integration Transmission Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Transmission customers will compensate the Pacific Northwest-
Pacific Southwest Intertie Project each month for Network Integration
Transmission Service (Network) under the applicable Network Agreement
and the formula rate described herein.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN30AU21.001

Rate Schedule DSW-SD4

SCHEDULE 1 to OATT

(Supersedes Rate Schedule DSW-SD3 dated October 1, 2016, through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority

Scheduling, System Control, and Dispatch Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Scheduling, System Control, and Dispatch Service is required to
schedule the movement of power through, out of, within, or into the
Balancing Authority Area (BA Area). This service can be provided only
by the operator in which the transmission facilities used for
transmission service are located. The Western Area Lower Colorado
Balancing Authority (WALC) performs this service for all Transmission
Service Providers (TSPs) within its BA Area. The transmission customer
must purchase this service, unless other arrangements are made with
WALC.

[[Page 48413]]

The charge will be applied to all schedules, except for schedules
that return energy in kind to WALC. WALC will accept any number of
scheduling changes during the day without additional charge. The charge
will be allocated equally among all TSPs, both Federal and non-Federal,
listed on schedules inside its BA Area. The Federal transmission
segments of the schedule are exempt from invoicing since the costs for
these segments are included in applicable transmission service rates.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN30AU21.002

The charge per schedule, per day, is calculated by dividing the
annual costs associated with scheduling (numerator) by the number of
schedules per year (denominator). The numerator is the annual cost of
transmission scheduling personnel, facilities, equipment, software, and
other related costs involved in providing the service. The denominator
is the yearly total of daily tags which result in a schedule, excluding
schedules that return energy in kind.
Based on the formula rate, the charge will be calculated each
fiscal year using updated financial and schedule data. The charge will
be effective on October 1st of each year and posted on WALC's website.

Rate Schedule DSW-RS4

SCHEDULE 2 to OATT

(Supersedes Rate Schedule DSW-RS3 dated October 1, 2016, through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority

Reactive Supply and Voltage Control From Generation Sources or Other
Sources Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

In order to maintain transmission voltages on the transmission
facilities within acceptable limits, generation facilities and non-
generation resources capable of providing Reactive Supply and Voltage
Control (VAR Support Service) are operated to produce (or absorb)
reactive power. This service must be provided for each transaction on
the transmission facilities within the Balancing Authority (BA) by the
Transmission Service Provider (TSP) or the BA who performs this
function for the TSP.
VAR Support Service will be provided by the Western Area Lower
Colorado Balancing Authority (WALC). Customers of a Federal TSP must
purchase this service from WALC unless the transmission customer has
generating resources capable of providing VAR Support Service directly
to the Federal TSP and has executed a contract stipulating all the
provisions of their self-supply. If WALC provides VAR Support Service
on behalf of any non-Federal TSP, this service will be assessed on
either the non-Federal TSP's reserved capacity or the scheduled
quantity of the non-Federal TSP's customers.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN30AU21.003

[[Page 48414]]

The numerator consists of the annual revenue requirement for
generation multiplied by the percentage of resource capacity used for
providing VAR Support Service. That percentage is based on the
nameplate power factor (one minus the power factor) for the generating
units supplying the service within WALC. The denominator consists of
the transmission transactions within WALC that require this service.
Based on the formula rate, the charge will be calculated each
fiscal year using updated financial and reservation data. The charge
will be effective on October 1st of each year and will be posted on
WALC's website.

Rate Schedule DSW-FR4

SCHEDULE 3 to OATT

(Supersedes Rate Schedule DSW-FR3 dated October 1, 2016, through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority

Regulation and Frequency Response Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Regulation and Frequency Response Service (Regulation Service) is
necessary to provide for the continuous balancing of resources,
generation and interchange, with load, and for maintaining scheduled
interconnection frequency at sixty cycles per second (60 Hz). The
obligation to maintain this balance between resources and load lies
with the Transmission Service Provider (TSP) or the Balancing Authority
(BA) who performs this function for the TSP. The Western Area Lower
Colorado Balancing Authority (WALC) performs this function for the
Federal TSPs and must offer this service when transmission is used to
serve load within its Balancing Authority Area (BA Area). Non-Federal
TSPs and customers of Federal TSPs must purchase Regulation Service
from WALC or make alternative comparable arrangements to satisfy their
regulation obligations.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN30AU21.004

The numerator includes the annual costs associated with plant-in-
service, operation and maintenance, purchase of regulation products,
purchases of power to support WALC's ability to regulate, and other
related costs involved in providing the service. The denominator
consists of the load within WALC that requires this service plus the
product of the installed nameplate capacity of solar and wind
generators serving load within WALC and the applicable capacity
multipliers.
Based on the formula rate, the charge will be calculated each
fiscal year using updated financial and load data. The charge will be
effective on October 1st of each year and will be posted on the WALC
website.

Types of Assessments

There are two different applications of this formula rate:
(1) A load-based assessment which is applicable to load within WALC
(total metered load less Federal power allocation, including behind the
meter generation rating, or if available, hourly data if generation is
synchronized) and the installed nameplate capacity of all intermittent
resources serving load within WALC.
(2) A self-provision assessment which allows entities with
Automatic Generation Control (AGC) to self-provide for all or a portion
of their loads. Entities with AGC are known as Sub-Balancing
Authorities (SBA) and must meet all of the following criteria: (a) Have
a well-defined boundary, with WALC-approved revenue-quality metering,
accurate as defined by the North American Electric Reliability
Corporation (NERC), to include Megawatt (MW) flow data availability at
6-second or smaller intervals; (b) have AGC responsive unit(s); (c)
demonstrate Regulation Service capability; and (d) execute a contract
with WALC, provide all requested data, and meet the SBA error criteria
below.
Self-provision is measured by use of the entity's 1-minute average
Area Control Error (ACE) to determine the amount of self-provision. The
ACE is used to calculate the Regulation Service charges every hour as
follows:
(1) If the entity's 1-minute average ACE for the hour is less than
or equal to 0.5 percent of its hourly average load, no charge is
assessed for that hour.
(2) If the entity's 1-minute average ACE for the hour is greater
than or equal to 1.5 percent of the entity's hourly average load, WALC
assesses charges using the hourly load-based assessment applied to the
entity's peak load for that month.
(3) If the entity's 1-minute average ACE for the hour is greater
than 0.5 percent but less than 1.5 percent of its hourly average load,
WALC assesses charges based on linear interpolation of no charge and
full charge, using the hourly load-based assessment applied to the
entity's peak load for that month.
WALC monitors the entity's self-provision on a regular basis. If
WALC determines that the entity has not been attempting to self-
regulate, WALC will, upon notification, employ the load-

[[Page 48415]]

based assessment methodology described above.

Alternative Arrangements

Exporting Intermittent Resource Requirement: An entity that exports
the output from an intermittent generator to another BA Area will be
required to dynamically meter or dynamically schedule that resource out
of WALC to another BA unless arrangements, satisfactory to WALC, are
made for that entity to acquire this service from a third-party or
self-supply (as outlined below). An intermittent generator is one whose
output is volatile and variable due to factors beyond direct
operational control and, therefore, is not dispatchable.
Self- or Third-party Supply: WALC may allow an entity to supply
some or all of its required regulation, or contract with a third party.
This entity must have revenue quality metering at every load and
generation point, with accuracy as defined by NERC, to include MW flow
data availability at 6-second (or smaller) intervals. WALC will
evaluate the entity's metering, telecommunications and regulating
resource, as well as the required level of regulation, to determine
whether the entity qualifies to self-supply under this provision. If
approved, the entity is required to enter into a separate agreement
with WALC which will specify the terms of self-supply.

Customer Accommodation

For entities unwilling to take Regulation Service, self-provide as
described above, or obtain the service from a third party, WALC will
assist the entity in dynamically metering its loads/resources to
another BA. Until such time as meter configuration is accomplished, the
entity will be responsible for charges assessed under this schedule.

Rate Schedule DSW-EI4

SCHEDULE 4 to OATT

(Supersedes Rate Schedule DSW-EI3 dated October 1, 2016, Through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority

Energy Imbalance Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Energy Imbalance Service is provided when there is a difference
between the scheduled and actual delivery of energy to a load located
within a Balancing Authority Area (BA Area) over a single hour. The
Transmission Service Provider (TSP) or the Balancing Authority (BA) who
performs this function for the TSP must offer this service when
transmission is used to serve load within its BA Area.
The Western Area Lower Colorado Balancing Authority (WALC) performs
this function for the Federal TSP. Customers of a Federal TSP must
purchase this service from WALC or make alternative comparable
arrangements to satisfy their Energy Imbalance obligations. Non-Federal
TSPs must have separate agreements with WALC that specify the terms of
Energy Imbalance Service. WALC may charge a transmission customer for
either energy imbalances under this schedule or generator imbalances
under Schedule 9 for imbalances occurring during the same hour, but not
both unless the imbalances aggravate rather than offset each other.

Formula Rate

Charges for energy imbalances are based on the deviation bands as
follows:
1. For deviations within <plus-minus>1.5 percent (with a minimum of
4 MW) of the metered load, the settlement for on-peak and off-peak
hours is 100 percent.
2. For deviations greater than <plus-minus>1.5 up to 7.5 percent
(or greater than 4 MW up to 10 MW) of the metered load, the settlement
for on-peak hours is 110 percent for under-delivery and 90 percent for
over-delivery, and the settlement for off-peak hours is 110 percent for
under-delivery and 75 percent for over-delivery.
3. For deviations greater than <plus-minus>7.5 percent (or 10 MW)
of the metered load, the settlement for on-peak hours is 125 percent
for under-delivery and 75 percent for over-delivery, and the settlement
for off-peak hours is 125 percent for under-delivery and 60 percent for
over-delivery.
The deviation bands will be applied hourly and any energy
imbalances that occur as a result of the transmission customer's
scheduled transactions will be netted on a monthly basis and settled
financially at the end of the month. For purposes of this schedule, the
proxy prices used to determine financial settlement will be derived
from the Palo Verde electricity price indexes, or similar alternative,
for on-peak and off-peak. WALC may accept settlement in energy in lieu
of financial settlement.
During periods of BA operating constraints, WALC reserves the right
to eliminate credits for over-delivery. The cost to WALC of any penalty
assessed by a regulatory authority due to a violation of operating
standards resulting from under or over-delivery of energy may be passed
through to customers.

Rate Schedule DSW-SPR4

SCHEDULE 5 to OATT

(Supersedes Rate Schedule DSW-SPR3 dated October 1, 2016, Through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority

Operating Reserve--Spinning Reserve Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Spinning Reserve Service is needed to serve load immediately in the
event of a system contingency and may be provided by generating units
that are on-line and loaded at less than maximum output. The
Transmission Service Provider (TSP) or the Balancing Authority (BA) who
performs this function for the TSP must offer this service when
transmission is used to serve load within its BA Area.
The Western Area Lower Colorado Balancing Authority (WALC) performs
this function for the Federal TSP. Customers of a Federal TSP must
purchase this service from WALC or make alternative arrangements to
satisfy their Spinning Reserve obligations.

Formula Rate

[[Page 48416]]

[GRAPHIC] [TIFF OMITTED] TN30AU21.005

WALC has no Spinning Reserves available for sale. Upon request,
WALC will purchase at market price and pass-through the cost plus an
administrative fee that covers the cost of procuring and supplying
Spinning Reserves. The customer will be responsible for providing the
transmission needed to deliver the Spinning Reserves purchased.

Rate Schedule DSW-SUR4

SCHEDULE 6 to OATT

(Supersedes Rate Schedule DSW-SUR3 dated October 1, 2016, Through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority

Operating Reserve--Supplemental Reserve Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Supplemental Reserve Service is needed to serve load in the event
of a system contingency. It is not available immediately to serve load
but is generally available within a short period of time after a system
contingency event. This service may be provided by generating units
that are on-line but unloaded, by quick-start generation, or by
interruptible load. The Transmission Service Provider (TSP) or the
Balancing Authority (BA) who performs this function for the TSP must
offer this service when transmission is used to serve load within its
BA Area.
The Western Area Lower Colorado Balancing Authority (WALC) performs
this function for the Federal TSP. Customers of a Federal TSP must
purchase this service from WALC or make alternative arrangements to
satisfy their Supplemental Reserve obligations.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN30AU21.006

WALC has no Supplemental Reserves for sale. Upon request, WALC will
purchase at market price and pass-through the cost plus an
administrative fee that covers the cost of procuring and supplying
Supplemental Reserves. The customer will be responsible for providing
the transmission needed to deliver.

Rate Schedule DSW-GI2

SCHEDULE 9 to OATT

(Supersedes Rate Schedule DSW-GI1 dated October 1, 2016, Through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region and Western Area Lower Colorado Balancing
Authority

Generator Imbalance Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Generator Imbalance Service is provided when a difference occurs
between the output of a generator located in the Balancing Authority
Area (BA Area) and the delivery schedule from that generator to another
BA Area or a load within the Transmission Service Provider's (TSP) BA
Area over a single hour. The TSP or the Balancing Authority (BA) who
performs this function for the TSP must offer this service, to the
extent it is physically feasible to do so from its resources or from
resources available to it, when transmission is used to deliver energy
from a generator located within its BA Area.
The Western Area Lower Colorado Balancing Authority (WALC) performs
this function for the Federal TSP. Customers of a Federal TSP must
purchase this service from WALC or make alternative comparable
arrangements to satisfy their generator imbalance obligations. Non-
Federal TSPs must have separate agreements with WALC that specify the
terms of Generator Imbalance Service. An intermittent resource serving
load outside WALC will be required to dynamically schedule or
dynamically meter their generation to another BA Area unless
arrangements, satisfactory to WALC, are made to acquire this service
from a third-party. An intermittent resource, for the limited purpose
of this schedule, is an electric generator that is not dispatchable and
cannot store its fuel source, and therefore cannot respond to changes
in demand or respond to transmission security constraints.
WALC may charge a transmission customer for either generator
imbalances under this schedule or energy imbalances under Schedule 4
for imbalances occurring during the same hour, but not both unless the
imbalances aggravate rather than offset each other.

Formula Rate

Charges for generator imbalances are based on the deviation bands
as follows:
1. For deviations within <plus-minus>1.5 percent (with a minimum of
4 MW) of the metered generation, the settlement for on-peak and off-
peak hours is 100 percent.
2. For deviations greater than <plus-minus>1.5 up to 7.5 percent
(or greater than 4 MW up to 10 MW) of the metered generation, the
settlement for on-peak hours is 110

[[Page 48417]]

percent for under-delivery and 90 percent for over-delivery, and the
settlement for off-peak hours is 110 percent for under-delivery and 75
percent for over-delivery.
3. For deviations greater than <plus-minus>7.5 percent (or 10 MW)
of the metered generation, the settlement for on-peak hours is 125
percent for under-delivery and 75 percent for over-delivery, and the
settlement for off-peak hours is 125 percent for under-delivery and 60
percent for over-delivery. An intermittent resource will be exempt from
this deviation band but will be subject to the settlement provisions in
the second deviation band for all deviations greater than <plus-
minus>7.5 percent (or 10 MW).
The deviation bands will be applied hourly and any generator
imbalances that occur as a result of the transmission customer's
scheduled transactions will be netted on a monthly basis and settled
financially at the end of the month. For purposes of this schedule, the
proxy prices used to determine financial settlement will be derived
from the Palo Verde electricity price indexes, or similar alternative,
for on-peak and off-peak. WALC may accept settlement in energy in lieu
of financial settlement.
During periods of BA operating constraints, WALC reserves the right
to eliminate credits for over-delivery. The cost to WALC of any penalty
assessed by a regulatory authority due to a violation of operating
standards resulting from under or over-delivery of energy may be passed
through to customers.

Rate Schedule DSW-TL1

(Supersedes Rate Schedule DSW-TL1 Dated October 1, 2016, Through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region

Western Area Lower Colorado Balancing Authority

Transmission Losses Service

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Capacity and energy losses occur when a Transmission Service
Provider (TSP) delivers electricity over its transmission facilities
for a transmission customer. The Western Area Lower Colorado Balancing
Authority (WALC) provides this service to TSPs within its Balancing
Authority Area (BA Area). Transmission losses (losses) are assessed for
transactions on transmission facilities within WALC, unless separate
agreements specify the terms for losses. The losses applicable to
Federal TSPs will be passed directly to transmission customers. The
transmission customer must either purchase this service from WALC or
make alternative comparable arrangements to satisfy their obligations
for losses.

Formula Rate

The loss percentage currently in effect is posted on WALC's website
and may be changed from time to time. Financial settlement for losses
will occur on a monthly basis, unless determined by WALC. Proxy prices
used to determine financial settlement will be derived from the Palo
Verde electricity price indexes, or similar alternative, for on-peak
and off-peak. This pricing information is posted on WALC's website.

Rate Schedule DSW-UU1

SCHEDULE 10 to OATT

(Supersedes Rate Schedule DSW-UU1 Dated October 1, 2016, Through
September 30, 2021)

United States Department of Energy

Western Area Power Administration

Desert Southwest Region

Central Arizona Project

Pacific Northwest-Pacific Southwest Intertie Project

Parker-Davis Project

Unreserved Use Penalties

(Approved Under Rate Order No. WAPA-175)

Effective

Applicable

Unreserved use occurs when a customer uses transmission service it
has not reserved or uses transmission service in excess of its reserved
capacity. Unreserved use may also include a transmission customer's
failure to curtail transmission when requested. The transmission
customer shall compensate the Federal Transmission Service Provider
(TSP) each month for any unreserved use of the transmission system.

Penalty Rate

The charge for a transmission customer that engages in unreserved
use is two times the maximum allowable firm point-to-point transmission
rate for the service at issue, assessed as follows:
(1) The penalty for one instance, in a single hour, is based on the
daily rate;
(2) The penalty for more than one instance, for any given duration
(e.g., daily) increases to the next longest duration (e.g., weekly).
A transmission customer that exceeds its reserved capacity at any
point of receipt or point of delivery, or a customer that uses
transmission service at a point of receipt or point of delivery that it
has not reserved, is required to pay for all ancillary services
provided by the Federal TSP and associated with the unreserved use. The
customer will pay for ancillary services based on the amount of
transmission service it used and did not reserve.
[FR Doc. 2021-18611 Filed 8-27-21; 8:45 am]
BILLING CODE 6450-01-P

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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.