Notice2022-24571
Olmsted Powerplant Replacement Project-Rate Order No. WAPA-205
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
November 10, 2022
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The Colorado River Storage Project Management Center (CRSP MC) of the Western Area Power Administration (WAPA) proposes a new formula rate for the Olmsted Powerplant Replacement Project (Olmsted Project). The existing rate for this service under Rate Order WAPA-177 expires on May 6, 2023. There are no proposed changes to the existing formula rate in effect under Rate Order WAPA-177. WAPA proposes the new formula rate under Rate Order WAPA-205 will be effective May 1, 2023, through April 30, 2028.
Full Text
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<title>Federal Register, Volume 87 Issue 217 (Thursday, November 10, 2022)</title>
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[Federal Register Volume 87, Number 217 (Thursday, November 10, 2022)]
[Notices]
[Pages 67894-67895]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24571]
[[Page 67894]]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Olmsted Powerplant Replacement Project--Rate Order No. WAPA-205
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed formula rate for electric power service.
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SUMMARY: The Colorado River Storage Project Management Center (CRSP MC)
of the Western Area Power Administration (WAPA) proposes a new formula
rate for the Olmsted Powerplant Replacement Project (Olmsted Project).
The existing rate for this service under Rate Order WAPA-177 expires on
May 6, 2023. There are no proposed changes to the existing formula rate
in effect under Rate Order WAPA-177. WAPA proposes the new formula rate
under Rate Order WAPA-205 will be effective May 1, 2023, through April
30, 2028.
DATES: A consultation and comment period will begin November 10, 2022
and end December 12, 2022.
CRSP MC 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
formula rate submitted by WAPA to FERC for approval should be sent to:
Rodney Bailey, Manager, CRSP MC, Western Area Power Administration,
1800 South Rio Grande Avenue, Montrose, CO 81401, or email:
<a href="/cdn-cgi/l/email-protection#41130320282d243801362031206f262e37"><span class="__cf_email__" data-cfemail="3d6f7f5c545158447d4a5c4d5c135a524b">[email protected]</span></a>. CRSP MC will post information about the proposed
formula rate and written comments received to its website at:
<a href="http://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx">www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx</a>.
FOR FURTHER INFORMATION CONTACT: Thomas Hackett, Rates Manager, CRSP
MC, Western Area Power Administration, 801-524-5503 or email:
<a href="/cdn-cgi/l/email-protection#c6aea7a5ada3b2b286b1a7b6a7e8a1a9b0"><span class="__cf_email__" data-cfemail="bdd5dcded6d8c9c9fdcadccddc93dad2cb">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On August 30, 2018, FERC approved and
confirmed Rate Schedule F-1 under Rate Order No. WAPA-177 on a final
basis through May 6, 2023.\1\ This schedule applies to the Olmsted
Project electric power service.
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\1\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF18-4-000, 164 FERC ] 62,116 (2018).
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The existing 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 continues the
formula-based methodology that includes an annual update to the
financial data in the rate formula. CRSP MC intends the proposed
formula-based rate go into effect May 1, 2023. Each WAPA customer who
receives an allocation of power from the Olmsted Project will pay its
proportional share of the amortized portion of the United States'
investment in the hydroelectric facilities with interest and the
associated operation, maintenance, and replacement (OM&R) costs in an
annual installment. The proportional share is based on each customer's
share of the Olmsted Project's marketable energy production.
This proposed formula-based rate does not depend on the power and
energy available to sell or the rate of generation each year. Each
customer pays a proportional share of all investment and OM&R expenses
of the Olmsted Project in return for its share of the marketable energy
produced by the Olmsted Project. Each fiscal year (FY), CRSP MC will
estimate the Olmsted Project expenses by preparing a power repayment
study, which will include estimates of OM&R costs for the Olmsted
Project. Cost allocations will be updated for the FY 2025 installment
after the 2025 Olmsted Power Marketing Plan is finalized and new power
contracts are effective October 1, 2024. The proposed formula rate
would remain in effect until April 30, 2028, or until WAPA changes the
formula rate through another public rate process pursuant to 10 CFR
part 903, whichever occurs first.
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
constitutes a minor rate adjustment, as defined by 10 CFR 903.2(e). In
accordance with 10 CFR 903.15(a) and 10 CFR 903.16(a), CRSP MC has
determined it is not necessary to hold public information and public
comment forums for this rate action but is initiating a 30-day
consultation and comment period to give the public an opportunity to
comment on the proposed formula rate. CRSP MC 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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\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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WAPA is establishing the formula rate for the Olmsted Project 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 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.
Availability of Information
All brochures, studies, comments, letters, memoranda, or other
documents that CRSP MC initiates or uses to develop the proposed
formula rate are available for inspection and copying at the CRSP MC,
located at 1800 South Rio Grande Avenue, Montrose, CO. Many of these
documents and supporting information are also available on WAPA's
website at: <a href="http://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx">www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx</a>.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined 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 activities). Categorically excluded projects and
activities do not require preparation of either an environmental impact
statement or an environmental assessment.\4\ Specifically, WAPA has
[[Page 67895]]
determined that this activity 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/CRSP/rates/Pages/rate-order-205.aspx">www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx</a>.
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\4\ The determination was done 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 October 28,
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 November 7, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-24571 Filed 11-9-22; 8:45 am]
BILLING CODE 6450-01-P
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