Notice2022-16629
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
August 3, 2022
Effective
October 1, 2022
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The non-firm power formula rate for the Washoe Project, Stampede Division (Provisional Formula Rate) has been confirmed, approved, and placed into effect on an interim basis. The Provisional Formula 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 148 (Wednesday, August 3, 2022)</title>
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[Federal Register Volume 87, Number 148 (Wednesday, August 3, 2022)]
[Notices]
[Pages 47419-47422]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-16629]
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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 rate order concerning non-firm power formula rate.
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SUMMARY: The non-firm power formula rate for the Washoe Project,
Stampede Division (Provisional Formula Rate) has been confirmed,
approved, and placed into effect on an interim basis. The Provisional
Formula Rate is unchanged from the existing Washoe Project formula rate
in Rate Schedule SNF-7, which expires on September 30, 2022.
DATES: The Provisional Formula Rate under Rate Schedule WSH-1 is
effective on the first day of the first full billing period beginning
on or after October 1, 2022, and will remain in effect through
September 30, 2027, pending confirmation and approval by the Federal
Energy Regulatory Commission (FERC) on a final basis or until
superseded.
FOR FURTHER INFORMATION CONTACT: Sonja Anderson, Regional Manager,
Sierra Nevada Region, Western Area Power Administration, 114 Parkshore
Drive, Folsom, California 95630, or Autumn Wolfe, Rates Manager, Sierra
Nevada Region, Western Area Power Administration, (916) 353-4686 or
email: <a href="/cdn-cgi/l/email-protection#de8d908cf38cbfaabb9dbfadbb9ea9bfaebff0b9b1a8"><span class="__cf_email__" data-cfemail="f3a0bda1dea1928796b0928096b384928392dd949c85">[email protected]</span></a>.
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, extending the rate
through September 30, 2022.\2\ This rate schedule applies to the Washoe
Project, Stampede Division. Western Area Power Administration (WAPA)
published a Federal Register notice (Proposed FRN) on April 5, 2022 (87
FR 19678), proposing no changes from the existing Washoe Project,
Stampede Division non-firm power formula rate in Rate Schedule SNF-7,
which expires on September 30, 2022. The Proposed FRN also initiated a
public consultation and comment period and set forth the date and
location of the public information and public comment forums.
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\1\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. ER08-5161-000, 127 FERC ] 62,043 (2009).
\2\ Orders Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF13-5-000, 144 FERC ] 62,213 (2013) and FERC
Docket No. EF17-1-000, 159 FERC ] 62,047 (2017).
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Legal Authority
By Delegation Order No. S1-DEL-RATES-2016, 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 on a final basis, remand, or disapprove such rates,
to FERC. By Delegation Order No. S1-DEL-S3-2022-2, effective June 13,
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 Infrastructure. By Redelegation Order No. S3-DEL-
WAPA1-2022, effective June 13, 2022, the Under Secretary for
Infrastructure redelegated the authority to confirm, approve, and place
such rates into effect on an interim basis to WAPA's Administrator.
This rate action is issued under Redelegation Order No. S3-DEL-WAPA1-
2022 and Department of Energy procedures for public
[[Page 47420]]
participation in rate adjustments outlined in 10 CFR part 903.\3\
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\3\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Following a review of the Sierra Nevada Region's proposal, I hereby
confirm, approve, and place Rate Order No. WAPA-201, which provides the
non-firm power formula rate for the Washoe Project, Stampede Division
into effect on an interim basis. WAPA will submit Rate Order No. WAPA-
201 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, Sierra Nevada
Region, Rate Adjustment for the Washoe Project, Stampede Division, Non-
Firm Power Formula Rate.
Rate Order No. WAPA-201
ORDER CONFIRMING, APPROVING, AND PLACING THE NON-FIRM POWER FORMULA
RATE FOR THE WASHOE PROJECT, STAMPEDE DIVISION INTO EFFECT ON AN
INTERIM BASIS
The non-firm power formula rate in Rate Order No. WAPA-201 is
established following section 302 of the Department of Energy (DOE)
Organization Act (42 U.S.C. 7152).\4\
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\4\ 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. S1-DEL-RATES-2016, 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-S3-2022-2, effective June 13, 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 Infrastructure.
By Redelegation Order No. S3-DEL-WAPA1-2022, effective June 13, 2022,
the Under Secretary for Infrastructure further redelegated the
authority to confirm, approve, and place such rates into effect on an
interim basis to WAPA's Administrator. This rate action is issued under
Redelegation Order No. S3-DEL-WAPA1-2022 and DOE procedures for public
participation in rate adjustments set forth at 10 CFR part 903.\5\
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\5\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Acronyms, Terms, and Definitions
As used in this Rate Order, the following acronyms, terms, and
definitions apply:
Customer Rate Brochure: A document prepared for public distribution
explaining the rationale and background for the information contained
in this rate order.
DOE Order RA 6120.2: Department of Energy Order outlining the power
marketing administration financial reporting and rate-making
procedures.
Energy: Measured in terms of the work it is capable of doing over a
period of time. Electric energy is usually measured in kilowatt-hours
or megawatt-hours.
NEPA: National Environmental Policy Act of 1969, as amended.
Non-Firm: Delivery or receipt of the power may be interrupted for any
reason without liability on the part of either buyer or seller.
Power: Capacity and energy.
Preference: The provisions of Reclamation Law that require WAPA to
first make Federal Power available to certain entities. For example,
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c))
states that preference in the sale of Federal Power shall be given to
municipalities and other public corporations or agencies and also to
cooperatives and other nonprofit organizations financed in whole or in
part by loans made under the Rural Electrification Act of 1936.
Provisional Formula Rate: A formula rate confirmed, approved, and
placed into effect on an interim basis by the Secretary or his/her
designee.
PRS: Power Repayment Study, as defined in DOE Order RA 6120.2 and used
for the rate adjustment period, is a tool used to determine if the
projected power revenue for each project is adequate to meet the annual
revenue requirement. The PRS is used to calculate how much revenue is
needed to meetannual investment obligations, O&M expenses, and
repayment requirements (including repayment periods).
Webex: Webex is an online secure invite-only meeting platform used by
WAPA. The general website is <a href="https://doe.webex.com">https://doe.webex.com</a>.
Effective Date
The Provisional Formula Rate Schedule WSH-1 will take effect on the
first day of the first full billing period beginning on or after
October 1, 2022, and will remain in effect through September 30, 2027,
pending approval by FERC on a final basis or until superseded.
Public Notice and Comment
Sierra Nevada Region followed the Procedures for Public
Participation in Power and Transmission Rate Adjustments and
Extensions, 10 CFR part 903, in developing this non-firm power formula
rate. Following are the steps Sierra Nevada Region took to involve
interested parties in the rate process:
1. On April 5, 2022, a Federal Register notice (87 FR 19678)
(Proposed FRN) announced the proposed non-firm power formula rate and
launched a 60-day public consultation and comment period.
2. On April 5, 2022, the Sierra Nevada Region notified Preference
Customers and interested parties of the proposed rate and provided a
copy of the published Proposed FRN.
3. On April 22, 2022, the Sierra Nevada Region held a public
information forum via Webex. Sierra Nevada Region's representatives
explained the proposed non-firm power formula rate, answered questions,
and gave notice that more information was available in the Customer
Rate Brochure.
4. On April 22, 2022, the Sierra Nevada Region held a public
comment forum to provide an opportunity for customers and other
interested parties to comment for the record.
5. Sierra Nevada Region published a website that contains all
dates, customer letters, presentations, comments, FRNs, Customer Rate
Brochure, and other information about this rate process. The website is
located at <a href="http://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx">www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx</a>.
6. During the 60-day consultation and comment period, which ended
on June 6, 2022, the Sierra Nevada Region received no oral comments and
no written comments.
Supplementary Information
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
[[Page 47421]]
water and drainage, as well as water for municipal, industrial, fishery
use, flood protection, fish and wildlife benefits, and recreation. The
Stampede Powerplant provides the economic equivalent of project-use
power to Lahontan and Marble Bluff fish facilities.
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 to 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 the 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
(Sierra Pacific), interconnects the Stampede power facilities with
Sierra Pacific'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.\6\ This
was necessary because a 1982 court order requires that Stampede be
operated for the benefit of endangered or threatened fish at Pyramid
Lake.\7\ 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
the 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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\6\ See Public Law 101-618, 104 Stat. 3289, 3307 (1990).
\7\ 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
marketed with the Central Valley Project (CVP) under the 2004 and 2025
Power Marketing Plans. Under the provisional Rate Schedule WSH-1, each
year any remaining reimbursable expenses that exceed the revenue
collected under the TDF contract are transferred to the 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 annual Stampede RECs based on the annual
percentage of CVP revenue transferred to the Washoe Project.
Stampede Non-Firm Power Formula Rate
There are no changes from the existing formula rate to the
Provisional Formula Rate. The Provisional 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 Provisional Formula Rate for Stampede power is:
Stampede Annual Transferred PRR = Stampede Annual PRR-Stampede Revenue
Where:
Stampede Annual Transferred PRR = Stampede Annual PRR 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. WAPA can use the SEEA revenue to benefit
project use facilities and market energy from Stampede to CVP
preference entities.
In the SEEA, the revenues from sales (generation revenues) are
reduced by the project use costs, 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.
Comments
Sierra Nevada Region received no oral or written comments during
the public consultation and comment period.
Certification of Rates
I have certified that the Provisional Formula Rate for the Washoe
Project, Stampede Division under Rate Schedule WSH-1 is the lowest
possible rate, consistent with sound business principles. The
Provisional Formula Rate was developed following administrative
policies and applicable laws.
Availability of Information
Information about this rate adjustment, including the Customer Rate
Brochure, PRS, comments, letters, memorandums, and other supporting
materials that were used to develop the Provisional Formula Rate, is
available for inspection and copying at the Sierra Nevada Regional
Office, 114 Parkshore Drive, Folsom, California. Many of these
documents are also available on WAPA's website at <a href="http://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx">www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx</a>.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this action fits within the following
categorical exclusions listed in appendix B to subpart D of 10 CFR part
1021.410: B4.3 (Electric power marketing rate changes) and B4.4 (Power
marketing services and activities). Categorically excluded projects and
activities do not require the preparation of either an environmental
impact statement or an environmental assessment.\8\ Specifically, WAPA
has determined that this rulemaking is consistent with activities
identified in B4, Categorical Exclusions Applicable to Specific Agency
Actions (see 10 CFR part 1021, appendix B to subpart D, part B4). A
copy of the categorical exclusion determination is available on WAPA's
website at <a href="http://www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx">www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx</a>.
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\8\ The determination was done in compliance with NEPA (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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[[Page 47422]]
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 Rate 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-201. The rate will remain in effect on an interim
basis until: (1) FERC confirms and approves it on a final basis; (2) a
subsequent rate is confirmed and approved; or (3) such rate is
superseded.
Signing Authority
This document of the Department of Energy was signed on July 25,
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 July 29, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION Washoe Project, Stampede Division
NON-FIRM POWER FORMULA RATE (Approved Under Rate Order No. WAPA-201)
Effective
The first day of the first full billing period beginning on or
after October 1, 2022, through September 30, 2027, or until superseded
by another rate schedule, whichever occurs earlier.
Available
Within the marketing area served by the Sierra Nevada Region.
Applicable
To preference customers under the 2004 Power Marketing Plan, the
2025 Power Marketing Plan, and the applicable third party(ies) who are
under contract (Contractor) with the Western Area Power Administration
(WAPA).
Character and Conditions of Service
Alternating current, 60 hertz, three-phase, delivered and metered
at the voltages and points established by contract.
Non-Firm Power Formula Rate
To serve project use loads and effectively market the energy from
Stampede, WAPA has contracted with a third-party Contractor that
provides for a Stampede Energy Exchange Account (SEEA). The SEEA is an
annual energy exchange account for Stampede energy. In the SEEA, the
revenues from sales (generation revenues) made at the SEEA Rate are
reduced by the project use and station service power costs, and SEEA
administrative costs. WAPA applies the ratio of project use costs to
the generation revenue recorded in the SEEA to determine a non-
reimbursable percentage. One hundred percent minus this 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. As stipulated under the 2004 Power Marketing Plan and
2025 Power Marketing Plan, any remaining reimbursable costs, including
interest and annual capital costs, are then transferred to the Central
Valley Project for incorporation into the CVP Power Revenue
Requirement.
The formula rate for Stampede power is:
Stampede Annual Transferred PRR = Stampede Annual PRR--Stampede Revenue
Where:
Stampede Annual Transferred Power Revenue Requirement (PRR) =
Stampede Annual PRR 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 SEEA Rate to project
generation.
Billing
Billing for the SEEA Rate will be as specified in the service
agreement.
Adjustment for Losses
Losses will be accounted for under this rate schedule as stated in
the service agreement.
[FR Doc. 2022-16629 Filed 8-2-22; 8:45 am]
BILLING CODE 6450-01-P
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