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Notice2023-00165

Desert Southwest Region Ancillary Services-Rate Order No. WAPA-208

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Published
January 9, 2023

Issuing agencies

Energy DepartmentWestern Area Power Administration

Abstract

The Desert Southwest Region (DSW) of the Western Area Power Administration (WAPA) proposes three new formula rates for Energy Imbalance Market (EIM) Administrative Service, Energy Imbalance (EI) Service, and Generator Imbalance (GI) Service for the Western Area Lower Colorado (WALC) Balancing Authority (BA). The new formula rates are necessary for participation in the California Independent System Operator's (CAISO) EIM. If adopted, the proposed formula rates under Rate Schedules DSW-EIM1T, DSW-EIM4T, and DSW-EIM9T will become effective April 5, 2023, and remain in effect through September 30, 2026. Publication of this Federal Register notice begins the formal process for the proposed formula rates.

Full Text

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<title>Federal Register, Volume 88 Issue 5 (Monday, January 9, 2023)</title>
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[Federal Register Volume 88, Number 5 (Monday, January 9, 2023)]
[Notices]
[Pages 1220-1222]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00165]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Region Ancillary Services--Rate Order No. WAPA-
208

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed formula rates for Energy Imbalance Market 
services.

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SUMMARY: The Desert Southwest Region (DSW) of the Western Area Power 
Administration (WAPA) proposes three new formula rates for Energy 
Imbalance Market (EIM) Administrative Service, Energy Imbalance (EI) 
Service, and Generator Imbalance (GI) Service for the Western Area 
Lower Colorado (WALC) Balancing Authority (BA). The new formula rates 
are necessary for participation in the California Independent System 
Operator's (CAISO) EIM. If adopted, the proposed formula rates under 
Rate Schedules DSW-EIM1T, DSW-EIM4T, and DSW-EIM9T will become 
effective April 5, 2023, and remain in effect through September 30, 
2026. Publication of this Federal Register notice begins the formal 
process for the proposed formula rates.

DATES: A consultation and comment period will begin January 9, 2023 and 
end February 8, 2023. DSW will accept written 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 rates submitted by WAPA to FERC for approval should be sent to: 
Jack D. Murray, Regional Manager, Desert Southwest Region, Western Area 
Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, or email: 
<a href="/cdn-cgi/l/email-protection#402433373037322d322b00372130216e272f36"><span class="__cf_email__" data-cfemail="c8acbbbfb8bfbaa5baa388bfa9b8a9e6afa7be">[email&#160;protected]</span></a>. DSW will post information about the proposed 
formula rates, other changes, and written comments received to its 
website at: <a href="http://www.wapa.gov/regions/DSW/Pages/DSW-EIM.aspx">www.wapa.gov/regions/DSW/Pages/DSW-EIM.aspx</a>.

FOR FURTHER INFORMATION CONTACT: Tina Ramsey, Rates Manager, Desert 
Southwest Region, Western Area Power Administration, (602) 605-2565 or 
email: <a href="/cdn-cgi/l/email-protection#1470676364636679667f54637564753a737b62"><span class="__cf_email__" data-cfemail="563225212621243b243d162137263778313920">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: On October 25, 2022, FERC approved and 
confirmed the following formula rates for ancillary services, 
transmission losses, and unreserved use penalties applicable to the 
WALC BA on a final basis through September 30, 2026: Rate Schedules 
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 Reserves), 
DSW-SUR4 (Supplemental Reserves), DSW-GI2 (Generator Imbalance), DSW-
TL1 (Transmission Losses), and DSW-UU1 (Unreserved Use Penalties).\1\
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    \1\ Order Confirming and Approving Rate Schedules on a Final 
Basis, Docket No. EF21-6-000 (Oct. 25, 2022).
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    To accommodate DSW's participation in the CAISO EIM, DSW is 
proposing new rate schedules for: (1) EIM Administrative Service (DSW-
EIM1T), (2) EIM EI Service (DSW-EIM4T), and (3) EIM GI Service (DSW-
EIM9T). The proposed new rate schedule for EIM Administrative Service 
would allow DSW to pass through the administrative costs and 
transaction fees resulting from WALC BA's participation in the CAISO 
EIM. The proposed new rate schedules

[[Page 1221]]

for EIM EI Service and EIM GI Service would allow DSW to pass through 
financial settlements incurred by the WALC BA. The CAISO EIM settles 
for EI Service and GI Service differently from DSW's existing rate 
schedules for similar services. In the EIM, the CAISO economically 
dispatches energy under its Tariff to meet the imbalances for loads and 
resources in multiple balancing authority areas. The EIM provides a 
centralized, automated, and region-wide dispatch for imbalances.
    DSW's proposed formula rates for EIM Administrative Service, EI 
Service and GI Service would go into effect on April 5, 2023, and 
remain in effect through September 30, 2026, or until DSW changes the 
formula rates through another public rate process pursuant to 10 CFR 
part 903, whichever occurs first.

EIM Administrative Service

    The CAISO assesses administrative service charges and transaction 
fees to recover the costs associated with operating the EIM and 
providing services to participants.
    The proposed new rate schedule, DSW-EIM1T, would facilitate the 
pass through of CAISO EIM administrative service charges and 
transaction fees to DSW transmission customers and ensure the WALC BA 
remains revenue neutral. If placed into effect, this rate schedule will 
align with WAPA's Tariff and apply when the WALC BA participates in the 
CAISO EIM and when the EIM has not been suspended. The services 
provided under DSW-SD4 continue to apply and the costs are included in 
the applicable transmission service rates. For clarity, when DSW is 
participating in CAISO EIM, both DSW-SD4 and DSW-EIM1T shall apply.
    Transmission customers will be billed for their share of EIM 
Administrative Service charges allocated to the WALC BA for its 
participation in the CAISO EIM in accordance with DSW's EIM business 
practice posted on its Open Access Same-time Information System (OASIS) 
at <a href="http://www.oasis.oati.com/walc/index.html">www.oasis.oati.com/walc/index.html</a>. Revisions to the CAISO's Tariff 
may require changes to DSW's EIM business practice, which would be 
processed consistent with section 4.3 of WAPA's Tariff.

EIM Energy Imbalance Service

    EI service is provided when a difference occurs between the 
scheduled and actual delivery of energy to a load within the WALC 
Balancing Authority Area (BAA). DSW's existing rate schedule for EI 
Service, DSW-EI4, does not address EIM participation or settlements.
    The proposed new rate schedule, DSW-EIM4T, would facilitate the 
pass through of any financial settlements for EI Service from the CAISO 
EIM to DSW transmission customers and ensure the WALC BA remains 
revenue neutral. If placed into effect, this rate schedule will align 
with WAPA's Tariff and apply to EI Service when the WALC BA 
participates in the CAISO EIM and when the EIM has not been suspended. 
DSW-EI4 would apply when the WALC BA is not participating in EIM or 
when the EIM has been suspended.
    Transmission customers will be billed for their share of EIM EI 
Service charges incurred by the WALC BA for its participation in the 
CAISO EIM in accordance with the settlement methods in DSW's EIM 
business practice posted on its OASIS at <a href="http://www.oasis.oati.com/walc/index.html">www.oasis.oati.com/walc/index.html</a>. Revisions to the CAISO's Tariff may require changes to 
DSW's EIM business practice, which would be processed consistent with 
section 4.3 of WAPA's Tariff.

EIM Generator Imbalance Service

    GI service is provided when a difference occurs between the output 
of a generator located in the WALC BAA, and the delivery schedule from 
that generator to (1) another BAA or (2) a load within the WALC BAA. 
DSW's existing rate schedule for GI service, DSW-GI2, does not address 
EIM participation or make a distinction between participating and non-
participating resources. The EIM requires all participating resources 
to settle directly with the CAISO. Non-participating resources need to 
settle with the WALC BA, the EIM entity.
    The proposed new rate schedule, DSW-EIM9T, would facilitate the 
pass through of any financial settlements for GI service from the CAISO 
EIM to DSW transmission customers and ensure the WALC BA remains 
revenue neutral. If placed into effect, this rate schedule will align 
with WAPA's Tariff and apply to GI service when the WALC BA 
participates in the CAISO EIM and when the EIM has not been suspended. 
DSW-G-I2 would apply when the WALC BA is not participating in EIM or 
when the EIM has been suspended.
    Transmission customers will be billed for their share of EIM GI 
Service charges incurred by the WALC BA for its participation in the 
CAISO EIM in accordance with the settlement methods in DSW's EIM 
business practice posted on its OASIS at <a href="http://www.oasis.oati.com/walc/index.html">www.oasis.oati.com/walc/index.html</a>. Revisions to the CAISO's Tariff may require changes to 
DSW's EIM business practice, which would be processed consistent with 
section 4.3 of WAPA's Tariff.

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), DSW 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 rates. DSW 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.
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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 DSW EIM Services 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 projects 
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 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, 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, memorandums, or other 
documents that DSW initiates or uses to develop the proposed formula 
rates are available on WAPA's website at

[[Page 1222]]

<a href="http://www.wapa.gov/regions/DSW/Pages/DSW-EIM.aspx">www.wapa.gov/regions/DSW/Pages/DSW-EIM.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.\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 December 
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 January 4, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-00165 Filed 1-6-23; 8:45 am]
BILLING CODE 6450-01-P


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