Notice2023-13282
Salt Lake City Area Integrated Projects and Colorado River Storage Project-Rate Order No. WAPA-206
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
June 22, 2023
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The Colorado River Storage Project (CRSP) Management Center (MC) of the Western Area Power Administration (WAPA) proposes a new Salt Lake City Area Integrated Projects (SLCA/IP) firm power rate and updated effective dates for existing CRSP transmission, joint dispatch transmission, ancillary services, and sale of surplus products formula rates. The current firm power rate expires December 31, 2023. The CRSP transmission services, ancillary services, and surplus products rates that expire September 30, 2025, and the CRSP joint dispatch transmission service rate that expires September 30, 2024, are included in Rate Order No. WAPA-206 to make all the rate schedules effective for the same timeframe. The firm power service rate is proposed to remain the same. No material changes are proposed to the other rate schedules aside from updating the effective dates.
Full Text
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<title>Federal Register, Volume 88 Issue 119 (Thursday, June 22, 2023)</title>
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[Federal Register Volume 88, Number 119 (Thursday, June 22, 2023)]
[Notices]
[Pages 40813-40816]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-13282]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Salt Lake City Area Integrated Projects and Colorado River
Storage Project--Rate Order No. WAPA-206
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed firm power fixed rate and transmission
services, ancillary services, and sale of surplus products formula
rates.
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SUMMARY: The Colorado River Storage Project (CRSP) Management Center
(MC) of the Western Area Power Administration (WAPA) proposes a new
Salt Lake City Area Integrated Projects (SLCA/IP) firm power rate and
updated effective dates for existing CRSP transmission, joint dispatch
transmission, ancillary services, and sale of surplus products formula
rates. The current firm power rate expires December 31, 2023. The CRSP
transmission services, ancillary services, and surplus products rates
that expire September 30, 2025, and the CRSP joint dispatch
transmission service rate that expires September 30, 2024, are included
in Rate Order No. WAPA-206 to make all the rate schedules effective for
the same timeframe. The firm power service rate is proposed to remain
the same. No material changes are proposed to the other rate schedules
aside from updating the effective dates.
DATES: A consultation and comment period will begin June 22, 2023 and
ends September 1, 2023. CRSP MC will present a detailed explanation of
the proposed rates and other modifications at public information forums
on the following dates and times:
1. Public information forum July 19, 2023, 12:00 p.m. to 2:00 p.m.
Mountain Daylight Time (MDT). This meeting will be conducted in Salt
Lake City, UT, along with a WebEx option.
2. CRSP MC will accept oral and written comments at a public
comment forum on the following date and time: August 15, 2023, 12:00
p.m. to no later than 2:00 p.m. MDT. This meeting will be conducted via
WebEx.
ADDRESSES: Written comments and requests for information about Federal
Energy Regulatory Commission (FERC) actions concerning the proposed
rates submitted by WAPA to FERC for approval should be sent to: Rodney
Bailey, CRSP Manager, Colorado River Storage Project Management Center,
Western Area Power Administration, 1800 South Rio Grande Avenue,
Montrose, CO 81401, or email: <a href="/cdn-cgi/l/email-protection#f1b2a3a2a1bcb2dc83908594dc90959bdcb186908190df969e87"><span class="__cf_email__" data-cfemail="c88b9a9b98858be5baa9bcade5a9aca2e588bfa9b8a9e6afa7be">[email protected]</span></a>. CRSP MC will
post information about the proposed rates and written comments received
to its website at: <a href="http://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx">www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx</a>.
FOR FURTHER INFORMATION CONTACT: Tony Henriquez, Rates Specialist,
Colorado River Storage Project Management Center, Western Area Power
Administration, 970-240-6546, or email: <a href="/cdn-cgi/l/email-protection#094a5b5a59444a247b687d6c24686d63497e687968276e667f"><span class="__cf_email__" data-cfemail="b9faebeae9f4fa94cbd8cddc94d8ddd3f9ced8c9d897ded6cf">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On May 12, 2022, FERC approved and confirmed
Rate Schedule SLIP-F12 for Firm Power Service under Rate Order No.
WAPA-199 on a final basis through December 31, 2023.\1\ On March 18,
2022, FERC approved and confirmed Rate Schedule SP-NFJDT for Joint
Dispatch Transmission Service under Rate Order No. WAPA-195 on a final
basis through September 30, 2024.\2\ On December 17, 2020, FERC
approved and confirmed the following rate schedules under Rate Order
No. WAPA-190 on a final basis through September 30, 2025.\3\ These rate
schedules are: SLIP-F11 for Firm Power Service (later superseded by
SLIP-F12), SP-NW5 for Network Integration Transmission Service, SP-PTP9
for Firm Point-to-Point Transmission Service, SP-NFT8 for Non-Firm
Point-to-Point Transmission Service, SP-UU2 for Unreserved Use
Penalties, SP-E15 for Energy and Generation Imbalance, SP-SSR5 for
Operating Reserves--Spinning and Supplemental Reserve Services, and SP-
SS1 for Sale of Surplus Products. The proposed firm power rate is a
fixed rate. The proposed transmission, ancillary services, and surplus
products rates continue the formula-based methodology that includes an
annual update to the financial and load data in the applicable rate
formulas. The inputs into the formulas and resulting charges under the
rates will be annually updated on October 1 thereafter. CRSP MC intends
the proposed rates to go into effect January 1, 2024, and remain in
effect until December 31, 2028, or until WAPA supersedes or changes the
rates through another public rate process pursuant to 10 CFR part 903,
whichever occurs first.
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\1\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF 22-1-000 (179 FERC ] 62,085 (2022)).
\2\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF 21-7-000 (178 FERC ] 62,154 (2022)).
\3\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF 20-7-000 (173 FERC ] 61,230 (2020)).
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The proposed rates will provide sufficient revenue to recover
annual operation, maintenance, and replacement 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, including the Cost Recovery
Charge component, please see the customer rate brochure (brochure)
located on CRSP MC's website at: <a href="http://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx">www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx</a>.
The Comment and Consultation period is shorter than 90 days and
will end on September 1, 2023. In accordance with 10 CFR 903.14(a),
WAPA has shortened the comment period to less than 90 days for good
cause. This timeframe is necessary to implement a new rate effective
January 1, 2024. There also was a delay in processing this Federal
Register Notice resulting from the unexpected loss of key rates
personnel.
SLCA/IP Firm Power Rate
Under the current Rate Schedule SLIP-12, the energy rate is 12.36
mills per kilowatt hour (mills/kWh) and the capacity rate is $5.25 per
kilowatt month ($/kWmonth). The composite
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rate of all charges, used for reference only as a comparison against
other wholesale power rates, is 30.51 mills/kWh.
Currently, CRSP MC uses the Bureau of Reclamation's (Reclamation)
most probable monthly water releases and end-of-month elevations as
reported in Reclamation's August 24-Month Study, provided by
Reclamation--Upper Colorado Basin, to determine the first year of
firming-energy-sales/generation projections. For energy-sales/
generation projections in subsequent years, CRSP MC will use data
provided by Reclamation's Colorado River Mid-term Modeling System
(CRMMS). Under Rate Schedule SLIP-F13, CRSP MC proposes no changes to
the customers 30 days' notice before reducing the Deliverable Sales
Amount (DSA) if Lake Powell's water level drops below the level at
which its turbines can no longer generate power, as established in Rate
Schedule SLIP-F12. CRSP MC will update the customer rate brochure
throughout the rate process as data and processes are updated or added.
The revenue requirement for the proposed firm power rate is based
on fiscal year (FY) 2022 historical financial data and estimated FY
2025 work plans for WAPA and Reclamation. The Reclamation FY 2023 April
24-Month Study is the source for the generation data for this proposal
FRN. Table 1 shows a comparison of costs of the existing rate
structures, without the additional purchased power expenses.
Table 1--Comparison of Existing and Proposed Firm Power Rates
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Existing rate under Proposed rate under
rate schedule SLIP-F12 rate achedule SLIP-F13
Rate schedule effective December 1, effective January 1, Change
2021 2024
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Base Rate:
Firm Energy: (mills/kWh).................. 12.36 12.36 0.0%
Firm Capacity: ($kW/month)................ 5.25 5.25 0.0%
Composite Rate/ \1\ (mills/kWh)........... 30.51 31.14 +2.0%
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\1\ The composite rate is used for reference only as a comparison against other wholesale power rates.
Deliverable Sales Amount
CRSP MC will continue to use the DSA methodology established in
Rate Order No. WAPA-199 to address drought conditions in the
southwestern United States and volatile purchased power costs. Under
DSA, sales are limited to projected generation, and CRSP MC will make
firming purchases up to the forecasted DSA level. WAPA will include
projected costs for operational expenses necessary to meet DSA, and
these costs will be included in the rate based on expenses incurred in
FY2022 and FY2023. CRSP MC will continue to offer the Western
Replacement Firming (WRF) product. WRF is optional purchased power to
firm to customers' Sustainable Hydropower (SHP) allocation levels, the
cost of which is passed through to firm power customers under a
separate charge for those customers electing WRF. Both DSA and WRF will
continue to be updated quarterly using the applicable 24-month study
from Reclamation. WRF will continue to be billed as it is requested to
match cost collection with cost occurrence.
Any customer electing not to receive its share of the purchased
power costs through WRF will not be charged for WRF. These customers
will receive a proportionate amount of capacity and energy from CRSP MC
each month under the DSA, charged at the proposed firm power rate,
reflecting projected hydropower generation levels.
Cost Recovery Charge
CRSP MC will continue to use a Cost Recovery Charge (CRC), if
necessary. The CRC is a mechanism to adequately recover and maintain a
sufficient balance in the Upper Colorado River Basin Fund (Basin Fund)
in the event projected expenses significantly exceed projected revenue
estimates. The Basin Fund is a revolving fund and operates without
annual appropriations. The CRC is an additional surcharge on all SHP
energy deliveries, which are long-term energy sales provided under
WAPA's SLCA/IP firm electric service contracts. The CRC may be
implemented when, among other things, the Basin Fund's cash balance is
at risk due to low hydropower generation, high prices for firming
power, or emergency capitalized investment funding. The CRC is based
only on Basin Fund cash analysis and is independent of the SLCA/IP
Power Repayment Study calculations.
Transmission Services
Annual Transmission Revenue Requirement (ATRR)
CRSP MC does not propose any material changes to the existing
formula rate for calculating the ATRR, applicable to the rates for
Network Integration Transmission Service and other transmission
services. The ATRR is the annual cost of the CRSP Transmission System
adjusted for Non-Firm Point-to-Point revenue credits, other
miscellaneous charges or credits, and the prior year true-up.
Network Integration Transmission Service
Formula Rate (SP-NW5)
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[GRAPHIC] [TIFF OMITTED] TN22JN23.003
CRSP MC proposes no material changes to the rate schedules for
network integration transmission service under proposed Rate Schedule
SP-NW6.
Firm and Non-Firm Point-to-Point Transmission Services
Formula Rate (SP-PTP9)
[GRAPHIC] [TIFF OMITTED] TN22JN23.004
Formula Rate (SP-NFT8)
Maximum Non-Firm Point-To-Point Transmission Rate = Firm Point-To-Point
Transmission Rate
CRSP MC proposes no material changes to the rate schedules for
point-to-point service under proposed Rate Schedules SP-PTP10 and SP-
NFT9.
Joint Dispatch Transmission Service
Formula Rate (SP-NFJDT)
Hourly Delivery:
On-Peak Hours: $0.00/MWh
Off Peak Hours: $0.00/MWh
CRSP MC proposes no material changes to the rate schedule for joint
dispatch transmission service under Rate Schedule SP-NFJDT.
Unreserved Use Penalties
CRSP MC proposes no material changes to the rate schedule for
unreserved use penalties under proposed Rate Schedule SP-UU3.
Ancillary Services
Energy Imbalance and Generator Imbalance Services
CRSP MC proposes no material changes to the rate schedule for
energy imbalance and generator imbalance under proposed Rate Schedule
SP-EI6.
Spinning and Supplemental Reserves Services
CRSP MC proposes no material changes to the rate schedule for
operating reserves--spinning and supplemental reserves services under
proposed Rate Schedule SP-SSR6.
Sale of Surplus Products
CRSP MC proposes no material changes to the rate schedule for the
sale of surplus products under proposed Rate Schedule SP-SS2.
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.\4\ 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), CRSP MC will hold public
information and public comment forums for this rate adjustment. CRSP MC
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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\4\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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WAPA is establishing the SLCA/IP firm power rate, CRSP transmission
and ancillary services formula rates, and sale of surplus products
formula rate in accordance with section 302 of the DOE Organization Act
(42 U.S.C. 7152).\5\
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\5\ 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 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-S3-2023, effective April 10, 2023, 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-WAPA1-2023, effective April 10, 2023,
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 rates
are available for inspection and copying at the Colorado River Storage
Project Management Center, located at 1800 South Rio Grande Avenue,
Montrose, Colorado. 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-206.aspx">www.wapa.gov/regions/CRSP/rates/Pages/rate-order-206.aspx</a>.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is determining whether an environmental assessment or an
environmental impact statement should
[[Page 40816]]
be prepared or if this action can be categorically excluded from those
requirements.\6\
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\6\ 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 June 2,
2023, 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 June 16, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-13282 Filed 6-21-23; 8:45 am]
BILLING CODE 6450-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.