Notice2022-11024
Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-203
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
May 25, 2022
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The Upper Great Plains Region (UGP) of the Western Area Power Administration (WAPA) proposes revised formula rates for the Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--ED) firm power, firm peaking power service, and sale of surplus products. The existing formula rates for these services, under Rate Schedules P-SED-F13, P- SED-FP13, and P-SED-M1, expire on December 31, 2022. UGP is proposing to update the formula rates for firm power service under Rate Schedule P-SED-F14, firm peaking power service under Rate Schedule P-SED-FP14, and sale of surplus products under Rate Schedule P-SED-M2, effective January 1, 2023, through December 31, 2027.
Full Text
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<title>Federal Register, Volume 87 Issue 101 (Wednesday, May 25, 2022)</title>
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[Federal Register Volume 87, Number 101 (Wednesday, May 25, 2022)]
[Notices]
[Pages 31878-31881]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11024]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Pick-Sloan Missouri Basin Program--Eastern Division-Rate Order
No. WAPA-203
AGENCY: Western Area Power Administration, DOE.
[[Page 31879]]
ACTION: Notice of proposed firm power service and sale of surplus
products formula rates.
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SUMMARY: The Upper Great Plains Region (UGP) of the Western Area Power
Administration (WAPA) proposes revised formula rates for the Pick-Sloan
Missouri Basin Program--Eastern Division (P-SMBP--ED) firm power, firm
peaking power service, and sale of surplus products. The existing
formula rates for these services, under Rate Schedules P-SED-F13, P-
SED-FP13, and P-SED-M1, expire on December 31, 2022. UGP is proposing
to update the formula rates for firm power service under Rate Schedule
P-SED-F14, firm peaking power service under Rate Schedule P-SED-FP14,
and sale of surplus products under Rate Schedule P-SED-M2, effective
January 1, 2023, through December 31, 2027.
DATES: A consultation and comment period will begin May 25, 2022 and
end August 23, 2022. UGP will present a detailed explanation of the
proposed P-SMBP--ED formula rates and other modifications at a public
information forum that will be held on June 15, 2022, at 8:30 a.m. MDT
to no later than 10:30 a.m. MDT. UGP will host a public comment forum
on June 29, 2022, at 11:00 a.m. MDT to no later than noon MDT.
The public information forum and the public comment forum will be
conducted via WebEx. Instructions for participating in the forums will
be posted on UGP's website at least 14 days prior to the public
information and comment forums at: <a href="http://www.wapa.gov/regions/UGP/Rates/Pages/2023-firm-rate-adjustment.aspx">www.wapa.gov/regions/UGP/Rates/Pages/2023-firm-rate-adjustment.aspx</a>.
UGP will accept comments 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
rates submitted by WAPA to FERC for approval should be sent to: Lloyd
Linke, Regional Manager, Upper Great Plains Region, Western Area Power
Administration, 2900 4th Avenue North, 6th Floor, Billings, MT 59101-
1266, or email <a href="/cdn-cgi/l/email-protection#790c1e091f100b140b180d1c390e180918571e160f"><span class="__cf_email__" data-cfemail="b1c4d6c1d7d8c3dcc3d0c5d4f1c6d0c1d09fd6dec7">[email protected]</span></a>. UGP will post information about
the proposed formula rates and written comments received to its website
at: www.wapa.gov/regions/UGP/rates/Pages/2023-firm-rate-
adjustment.aspx.
FOR FURTHER INFORMATION CONTACT: Linda Cady-Hoffman, Rates Manager,
Upper Great Plains Region, Western Area Power Administration, 2900 4th
Avenue North, 6th Floor, Billings, MT 59101-1266, telephone (406) 255-
2920, email <a href="/cdn-cgi/l/email-protection#791a181d00390e180918571e160f"><span class="__cf_email__" data-cfemail="e48785809da493859485ca838b92">[email protected]</span></a> <a href="/cdn-cgi/l/email-protection#3b5449075a1b53495e5d06" mailto:ugpfirmrate@wapa.gov"><span class="__cf_email__" data-cfemail="f88d9f889e918a958a998c9db88f998899d69f978e">[email protected]</span></a>">or<a href="/cdn-cgi/l/email-protection#13667463757a617e6172677653647263723d747c65"><span class="__cf_email__" data-cfemail="3c495b4c5a554e514e5d48597c4b5d4c5d125b534a">[email protected]</span></a></a>.
SUPPLEMENTARY INFORMATION: On April 16, 2018, FERC confirmed and
approved Formula Rate Schedules P-SED-F13, P-SED-FP13, and P-SED-M1,
under Rate Order No. WAPA-180, on a final basis through December 31,
2022.\1\ These schedules apply to firm power, firm peaking power
service, and the sale of surplus products.
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\1\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF18-2-000, 163 FERC ] 62,039 (2018).
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UGP intends the proposed formula rates to go into effect January 1,
2023. The proposed formula rates would remain in effect until December
31, 2027, or until WAPA supersedes or changes the formula rates through
another public rate process pursuant to 10 CFR part 903, whichever
occurs first.
The proposed formula rates would provide sufficient revenue to
recover annual operation, maintenance, and replacement (OM&R) expenses,
interest expense, irrigation assistance, and capital repayment
requirements while ensuring repayment of the project within the cost
recovery criteria set forth in Department of Energy (DOE) Order RA
6120.2. For more information on the proposed rates, please see the
customer brochure located on UGP's website at: <a href="http://www.wapa.gov/regions/UGP/rates/pages/2023-firm-rate">www.wapa.gov/regions/UGP/rates/pages/2023-firm-rate</a> adjustment.aspx.
Firm Power and Firm Peaking Power Services
The P-SMBP Fiscal Year 2021 Power Repayment Study (PRS) revenue
requirement and current water conditions are the determining factors
for this proposed rate adjustment.
The base component costs for the P-SMBP have increased primarily
due to: (1) Increased OM&R from WAPA and the generating agencies; (2)
increased purchase power, including during the severe winter weather
event in February 2021 (Winter Storm Uri); (3) pricing volatility; and
(4) the loss of certain balancing authority revenues for services that
WAPA no longer provides after joining the Western Energy Imbalance
Service Market. Winter Storm Uri was not a water or generation issue;
therefore, its costs only impact the base component.
The driver behind the P-SMBP drought adder component increase is
the Army Corps of Engineers Annual Operating Plan projecting less than
average generation for the next several years in the P-SMBP mainstem
dams. Uncertainties with water inflows, hydro generation, and
replacement energy prices continue to pose potential risks for meeting
firm power contractual commitments.
The net effect of these adjustments to the base and drought adder
components results in an overall increase to the P-SMBP--ED rate. A
comparison of the current and proposed revenue requirements is shown in
Table 1:
Table 1--Summary of Current and Proposed Revenue Requirements
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Current under P- Proposed under P-
SED-F13 as of SED-F14 as of
Firm power service January 1, 2018 January 1, 2023 Percent change
(in million $) (in million $)
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P-SMBP--ED Revenue Requirement)........................ $230.1 $268.4 16.6
Pick-Sloan--WD \1\..................................... 50.8 58.6 15.4
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\1\ The Pick-Sloan--WD revenue requirement is recovered by the Loveland Area Projects rate schedules, which are
to be adjusted accordingly in proposed Rate Order No. WAPA-202.
Under the current rate methodology, rates for PSMBP--ED firm power
and firm peaking power service are designed to recover an annual
revenue requirement that includes investment repayment, interest,
purchase power, OM&R, and other expenses within the allowable period.
The annual revenue requirement continues to be allocated equally
between demand and energy.
A comparison of the current and proposed rates is shown in Table 2:
[[Page 31880]]
Table 2--Summary of Current and Proposed Rates
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Current under Proposed under
P-SED-F13/ P- P-SED-F14/ P-
Firm power service SED-FP13 as of SED-FP14 as of Percent change
January 1, January 1,
2018 2023
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P-SMBP--ED Composite Rate (mills/kilowatt-hour)................. 24.00 27.91 16.3
Firm Demand ($/kilowatt-month).................................. $5.25 $6.20 18.1
Firm Energy (mills/kilowatt-hour)............................... 13.27 15.27 15.1
Firm Peaking Demand ($/kilowatt-month).......................... $4.75 $5.70 20.0
Firm Peaking Energy \1\ (mills/kilowatt-hour)................... 13.27 15.27 15.1
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\1\ Firm Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is
not returned.
As a part of the current and proposed rate schedules, UGP provides
a formula-based adjustment of the drought adder component, with an
annual increase of up to 2 mills per kilowatt-hour (kWh) each year. 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 one-year cycle.
Continuing to identify the firm power service revenue requirement using
base and drought adder components will assist UGP in the presentation
of future impacts of droughts, demonstrate repayment of drought-related
costs in the PRS, and allow UGP 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.
The proposed adjustment updates the base component with present
costs from a revenue requirement of $230.1 million to $235.4 million
and increases the drought adder revenue requirement. For rate year 2023
the drought adder revenue requirement increases from zero to $33.0
million.
A comparison of the current and proposed components is shown in
Table 3:
Table 3--Summary of P-SMBP--ED Charge Components
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Current charges under rate schedules P-SED-F13 Proposed charges under rate schedules P-SED-
and P-SED-FP13 as of January 1, 2018 F14 and P-SED-FP14 as of January 1, 2023
------------------------------------------------------------------------------------------------ Percent change
Drought adder Drought adder
Base component component Total charge Base component component Total charge
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Firm Demand ($/kilowatt-month).......... $5.25 $0.00 $5.25 $5.45 $0.75 $6.20 18.1
Firm Energy (mills/kWh)................. 13.27 0.00 13.27 13.36 1.91 15.27 15.1
Firm Peaking Demand ($/kilowatt-month).. $4.75 $0.00 $4.75 $5.00 $0.70 $5.70 20
Firm Peaking Energy \1\ (mills/kWh)..... 13.27 0.00 13.27 13.36 1.91 15.27 15.1
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\1\ Firm peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.
Sale of Surplus Products
The Sale of Surplus Products rate schedule is formula based,
providing for P-SMBP--ED Marketing 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 separate charge may be incurred. The proposed Rate Schedule, P-
SED-M2, continues to allow for the sale of energy, frequency response,
regulation, and reserves.
Legal Authority
Existing DOE procedures for public participation in power and
transmission rate adjustments (10 CFR part 903) were published on
September 18, 1985, and February 21, 2019.\2\ The proposed action is a
major rate adjustment, as defined by 10 CFR 903.2(d). In accordance
with 10 CFR 903.15(a) and 10 CFR 903.16(a), UGP will hold public
information and public comment forums for this rate adjustment. UGP
will review and consider all timely public comments at the conclusion
of the consultation and comment period and adjust the proposal as
appropriate. The rates will then be approved on an interim basis.
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\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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WAPA is establishing the formula rates for P-SMPB--ED in accordance
with section 302 of the DOE Organization Act (42 U.S.C. 7152).\3\
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\3\ 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.
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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 WAPA's 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, to remand or to
disapprove such rates to FERC. By Delegation Order No. S1-DEL-S4-2022,
effective March 14, 2022, 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 Science (and Innovation). By
Redelegation Order No.S4-DEL-OE1-2021-2, effective December 8, 2021,
the Under Secretary for Science (and Innovation) redelegated
[[Page 31881]]
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 July8, 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 and March 2022 delegations, remains valid.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that UGP initiates or uses to develop the proposed formula
rates will be 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 and supporting information
are also available on UGP's website at: www.wapa.gov/regions/UGP/rates/
Pages/2023-firm-rate-adjustment.aspx.
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.\4\
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\4\ 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 May 4,
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 May 18, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-11024 Filed 5-24-22; 8:45 am]
BILLING CODE 6450-01-P
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