Notice2022-07121
Washoe Project, Stampede Division-Rate Order No. WAPA-201
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
April 5, 2022
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The Sierra Nevada Region of the Western Area Power Administration (WAPA) proposes a minor rate adjustment for the non-firm power formula rate for the Washoe Project, Stampede Division. The proposed rate will go into effect on October 1, 2022, and will remain in effect through September 30, 2027. The proposed rate is unchanged from the existing Washoe Project formula rate in Rate Schedule SNF-7, which expires on September 30, 2022.
Full Text
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<title>Federal Register, Volume 87 Issue 65 (Tuesday, April 5, 2022)</title>
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[Federal Register Volume 87, Number 65 (Tuesday, April 5, 2022)]
[Notices]
[Pages 19678-19680]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-07121]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Washoe Project, Stampede Division--Rate Order No. WAPA-201
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed non-firm power formula rate.
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SUMMARY: The Sierra Nevada Region of the Western Area Power
Administration (WAPA) proposes a minor rate adjustment for the non-firm
power formula rate for the Washoe Project, Stampede Division. The
proposed rate will go into effect on October 1, 2022, and will remain
in effect through September 30, 2027. The proposed rate is unchanged
from the existing Washoe Project formula rate in Rate Schedule SNF-7,
which expires on September 30, 2022.
DATES: A consultation and comment period will begin April 5, 2022 and
end June 6, 2022. Sierra Nevada Region will present a detailed
explanation of the proposed non-firm power formula rate and other
modifications at a public information forum on the following date and
time:
1. Friday, April 22, 2022, from 9 a.m. PDT to no later than 12 p.m.
PDT.
Sierra Nevada Region will accept oral and written comments at a
public comment forum on the following date and time:
1. Friday, April 22, 2022, starting at 1 p.m. PDT, to remain open
until all comments are acknowledged, or no later than 4 p.m. PDT.
Sierra Nevada Region will conduct both the public information forum
and public comment forum via WebEx. Instructions for participating in
the forums via WebEx will be posted on Sierra Nevada Region's website
at least 14 days before the public information and comment forums at
<a href="https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx">https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx</a>.
The Sierra Nevada Region will accept written comments at any time
during the consultation and comment period.
ADDRESSES: Written comments and requests to be informed of Federal
Energy Regulatory Commission (FERC) actions concerning the proposed
non-firm power formula rate submitted by WAPA to FERC for approval
should be sent to: Ms. Sonja Anderson, Regional Manager, Sierra Nevada
Region, Western Area Power Administration, 114 Parkshore Drive, Folsom,
California 95630, or email: <a href="/cdn-cgi/l/email-protection#42110c106f102336270123312702352332236c252d34"><span class="__cf_email__" data-cfemail="1d4e534f304f7c69785e7c6e785d6a7c6d7c337a726b">[email protected]</span></a>. WAPA will post
information about the proposed non-firm power formula rate and written
comments received to its website at: <a href="https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx">https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx</a>.
FOR FURTHER INFORMATION CONTACT: Ms. Autumn Wolfe, Rates Manager,
Sierra Nevada Region, Western Area Power Administration, (916) 353-4686
or email: <a href="/cdn-cgi/l/email-protection#9ccfd2ceb1cefde8f9dffdeff9dcebfdecfdb2fbf3ea"><span class="__cf_email__" data-cfemail="fcafb2aed1ae9d8899bf9d8f99bc8b9d8c9dd29b938a">[email protected]</span></a>.
[[Page 19679]]
SUPPLEMENTARY INFORMATION: On April 16, 2009, FERC approved and
confirmed the Sierra Nevada Region Washoe Project, Stampede Division's
non-firm power formula rate, Rate Schedule SNF-7, under Rate Order No.
WAPA-136, on a final basis through July 31, 2013.\1\ FERC subsequently
approved two consecutive 5-year rate extensions in Docket Nos. EF13-5-
000 and EF17-1-000, extending the rate through September 30, 2022.\2\
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\1\ U.S. Dep't of Energy--W. Area Power Admin. (Washoe Project,
Stampede Division), 127 FERC ] 62,043 (2009). Rate Order No. WAPA-
136, issued June 14, 2008, had placed the rate into effect on an
interim basis effective August 1, 2008.
\2\ 144 FERC ] 62,213 (2013) and 159 FERC ] 62,047 (2017).
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The existing non-firm power formula rate provides sufficient
revenue to recover annual costs within the cost recovery criteria set
forth in Department of Energy (DOE) Order RA 6120.2. The proposed rate
is unchanged from the existing Washoe Project formula rate in Rate
Schedule SNF-7, which expires on September 30, 2022. WAPA intends the
proposed non-firm power formula rate to go into effect on October 1,
2022. The proposed non-firm power formula rate would remain in effect
until September 30, 2027, or until WAPA changes the non-firm power
formula rate through another public rate process pursuant to 10 CFR
part 903, whichever occurs first.
The Stampede Powerplant has two units with a maximum hourly
operating capability of 3,650 kilowatts (kW) and an estimated annual
generation of 11 million kilowatt-hours (kWh). Since the Stampede
Powerplant has an installed capacity of less than 20,000 kW and
generates less than 100 million kWh annually for sale, the proposed
rate constitutes a minor rate adjustment under the applicable
regulations.\3\
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\3\ See 10 CFR 903.2(e).
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History of the Washoe Project, Stampede Division
Stampede Dam and Reservoir are located on the Little Truckee River
in Sierra County, California, about 11 miles northeast of the town of
Truckee. The Washoe Project was designed to improve the regulation of
runoff from the Truckee and Carson River system and to provide
supplemental irrigation water and drainage, as well as water for
municipal, industrial, fishery use, flood protection, fish and wildlife
benefits and recreation. The power generation is used principally to
provide energy for two Federal fish hatcheries: Lahontan National Fish
Hatchery and Marble Bluff Fish Hatchery.
When the Stampede Dam and Reservoir project was first authorized,
under Public Law 84-858, on August 1, 1956, hydroelectric power
development was included. During the period 1966-1970, when Stampede
Dam was built, power facilities were not constructed because the power
function was not economically justified. Provisions were made to
facilitate the addition of power facilities at a later date.
In July 1976, a preliminary reevaluation of a powerplant at
Stampede was conducted and published in a special U.S. Department of
Interior, Bureau of Reclamation (Reclamation) report, Adding
Powerplants at Existing Federal Dams in California. In the report,
Reclamation recommended construction of a Stampede Powerplant. As a
result, definitive plan studies were initiated in Fiscal Year 1977, and
construction of the powerplant was completed in 1987. A one-half-mile,
60-kilovolt transmission line, owned by Sierra Pacific Power company,
interconnects the Stampede power facilities with WAPA's transmission
system.
Under section 205(c) of the Fallon Paiute Shoshone Indian Tribes
Water Rights Settlement Act of 1990, Congress declared all Washoe
Project costs non-reimbursable except the Stampede Powerplant.\4\ This
was necessary because a 1982 court order requires that Stampede be
operated for the benefit of endangered or threatened fish at Pyramid
Lake.\5\ The energy generated by the powerplant has a priority
reservation for designated Washoe Project loads. All remaining energy
generation is sold on a non-firm basis under the conditions outlined in
Sierra Nevada Region's contract with a third-party contractor. Energy
generated at Stampede Powerplant is dependent on the run of the river
and is therefore considered non-firm.
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\4\ See Public Law 101-618, 104 Stat. 3289, 3307 (1990).
\5\ See Carson-Truckee Water Conservancy Dist. v. Watt, 549 F.
Supp. 704, 710 (D. Nev. 1982), aff'd in part and vacated in part sub
nom. Carson-Truckee Water Conservancy Dist. v. Clark, 741 F.2d 257,
260 (9th Cir. 1984).
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Since the Washoe Project has no Federally owned transmission lines,
Sierra Nevada Region contracted with Truckee Donner Public Utility
District and the City of Fallon (TDF) to accept Stampede generation and
serve project use loads. Energy in excess of project use loads is
integrated with the Central Valley Project (CVP) and marketed under the
2004 and 2025 Power Marketing Plans. Under the proposed Rate Schedule
WSH-1, each year any remaining reimbursable expenses that exceed the
revenue collected under the TDF contract are transferred to CVP and
incorporated into the CVP power revenue requirement (PRR). CVP
customers that participate in the Renewable Energy Credit (REC) program
receive a share of the Stampede RECs annually based on the annual
percentage of revenue share they transfer to the Washoe Project.
Stampede Non-Firm Power Formula Rate
There are no changes from the existing formula rate to the proposed
formula rate. The proposed formula rate for Stampede's non-firm power
is designed to recover an annual revenue requirement that includes
investment repayment, interest, purchase power, reimbursable operation
and maintenance expenses, and other expenses. The proposed formula rate
for Stampede power is:
Stampede Annual Transferred PRR = Stampede Annual PRR-Stampede Revenue
Where:
Stampede Annual Transferred PRR = Stampede Annual PRR as identified
as a cost transferred to the CVP.
Stampede Annual PRR = the total PRR for Stampede required to repay
all annual costs, including interest, and the investment within the
allowable period.
Stampede Revenue = Revenue from applying the Stampede Energy
Exchange Account (SEEA) rate to project generation.
The SEEA is an annual energy exchange account for Stampede energy.
Under the contract, TDF accepts delivery of all energy generated from
Stampede and integrates this generation into its resource portfolio.
The monthly calculation of revenue from Stampede energy received by TDF
is credited into the SEEA at the SEEA rate. WAPA can use the SEEA to
benefit project use facilities and market energy from Stampede to CVP
preference entities.
In the SEEA, the revenues from sales (generation revenues) made at
the SEEA rate are reduced by the project use, station service power
costs, and SEEA administrative costs. WAPA applies the ratio of project
use cost to the generation revenue recorded in the SEEA to determine a
non-reimbursable percentage. One hundred percent minus the non-
reimbursable percentage establishes a reimbursable percentage. This
reimbursable percentage is then applied to the appropriate power-
related costs to determine the reimbursable costs for repayment. The
reimbursable costs are then netted against generation revenues made at
the SEEA rate.
Legal Authority
Existing DOE procedures for public participation in power and
transmission
[[Page 19680]]
rate adjustments (10 CFR part 903) were published on September 18,
1985, and February 21, 2019.\6\ The proposed action constitutes a minor
rate adjustment, as defined by 10 CFR 903.2(e)(2). In accordance with
10 CFR 903.15(a) and 10 CFR 903.16(a), Sierra Nevada Region will hold a
public information and public comment forum for this minor rate
adjustment. Sierra Nevada Region will review and consider all timely
public comments at the conclusion of the consultation and comment
period and make amendments or adjustments to the proposal as
appropriate. Proposed rates will then be approved on an interim basis.
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\6\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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WAPA is establishing the non-firm power formula rate for Washoe
Project, Stampede Division in accordance with section 302 of the DOE
Organization Act (42 U.S.C. 7152).\7\
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\7\ 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 project
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 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-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-OE1-2021-2, also effective
December 8, 2021, the 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 redelegated the
authority to confirm, approve, and place such rates into effect on an
interim basis to WAPA's Administrator. This redelegation order, despite
predating the December 2021 delegations, remains valid.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Sierra Nevada Region initiates or uses to develop the
proposed non-firm power formula rate are available for inspection and
copying at the Sierra Nevada Region, Western Area Power Administration,
114 Parkshore Drive, Folsom, California 95630. Many of these documents
and supporting information are also available on WAPA's website at
<a href="https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx">https://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx</a>.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is in the process of determining whether an environmental
assessment or an environmental impact statement should be prepared or
if this action can be categorically excluded from those
requirements.\8\
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\8\ 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).
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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.
Signing Authority
This document of the Department of Energy was signed on March 22,
2022, 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 March 31, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-07121 Filed 4-4-22; 8:45 am]
BILLING CODE 6450-01-P
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