Notice2023-13974
Desert Southwest Region-Rate Order No. WAPA-209
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 30, 2023
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The Desert Southwest Region (DSW) of the Western Area Power Administration (WAPA) proposes new formula rates for firm and nonfirm point-to-point (P2P) and network integration (Network) transmission service. DSW also proposes to revise the existing formula rates for Parker-Davis Project (PDP) firm electric service (FES) and firm transmission service of Salt Lake City Area/Integrated Projects (SLCA/ IP) power. The proposed new formula rates and revisions to existing formula rates would combine the transmission service rates of the Central Arizona Project (CAP), the southern portion of the Pacific Northwest-Pacific Southwest Intertie Project (Intertie), and PDP; and the facilities use charge for the Electrical District No. 5 to Palo Verde Hub Project (ED5-PVH). DSW's proposed formula rates will be effective January 1, 2024, through September 30, 2028. 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 125 (Friday, June 30, 2023)</title>
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[Federal Register Volume 88, Number 125 (Friday, June 30, 2023)]
[Notices]
[Pages 42355-42358]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-13974]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Desert Southwest Region--Rate Order No. WAPA-209
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed formula rates for transmission and firm
electric service.
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SUMMARY: The Desert Southwest Region (DSW) of the Western Area Power
Administration (WAPA) proposes new formula rates for firm and nonfirm
point-to-point (P2P) and network integration (Network) transmission
service. DSW also proposes to revise the existing formula rates for
Parker-Davis Project (PDP) firm electric service (FES) and firm
transmission service of Salt Lake City Area/Integrated Projects (SLCA/
IP) power. The proposed new formula rates and revisions to existing
formula rates would combine the transmission service rates of the
Central Arizona Project (CAP), the southern portion of the Pacific
Northwest-Pacific Southwest Intertie Project (Intertie), and PDP; and
the facilities use charge for the Electrical District No. 5 to Palo
Verde Hub Project (ED5-PVH). DSW's proposed formula rates will be
effective January 1, 2024, through September 30, 2028. Publication of
this Federal Register notice begins the formal process for the proposed
formula rates.
DATES: The consultation and comment period begins June 30, 2023 and
will end September 28, 2023.
DSW will present a detailed explanation of the proposed formula
rates and other modifications at a public information forum that will
be held on August 7, 2023 from 10 a.m. to no later than 12 p.m.
Mountain Standard Time (MST), or until the last comment is received.
DSW will host a public comment forum that will be held on August 29,
2023, from 10 a.m. to no later than 12 p.m. MST, or until the last
comment is received. The public information forum and the public
comment forum will be conducted
[[Page 42356]]
virtually. Instructions for participating in the forums will be posted
on DSW's website at least 14 days prior to the public information and
comment forums at: <a href="http://www.wapa.gov/regions/DSW/Rates/Pages/OTR.aspx">www.wapa.gov/regions/DSW/Rates/Pages/OTR.aspx</a>.
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#0460777374737669766f44736574652a636b72"><span class="__cf_email__" data-cfemail="a9cddaded9dedbc4dbc2e9dec8d9c887cec6df">[email 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/Rates/Pages/OTR.aspx">www.wapa.gov/regions/DSW/Rates/Pages/OTR.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#204453575057524d524b60574150410e474f56"><span class="__cf_email__" data-cfemail="214552565156534c534a61564051400f464e57">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: FERC approved and confirmed the following
Rate Schedules under the applicable Rate Orders on a final basis
through the dates indicated below:
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Dates
Rate schedules Rate order Nos. -------------------------------------
Approval Expiration
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CAP-FT3 \1\................................ WAPA-193..................... 12/10/2020 12/31/2025
INT-FT5 \2\................................ WAPA-192..................... 3/2/2021 9/30/2023
PD-FT7 \3\................................. WAPA-184..................... 1/31/2019 9/30/2023
CAP-NFT3 \1\............................... WAPA-193..................... 12/10/2020 12/31/2025
INT-NFT4 \2\............................... WAPA-192..................... 3/2/2021 9/30/2023
PD-NFT7 \3\................................ WAPA-184..................... 1/31/2019 9/30/2023
CAP-NITS3 \1\.............................. WAPA-193..................... 12/10/2020 12/31/2025
INT-NTS4 \4\............................... WAPA-200..................... 10/25/2022 9/30/2026
PD-NTS4 \4\................................ WAPA-200..................... 10/25/2022 9/30/2026
PD-F7 \3\.................................. WAPA-184..................... 1/31/2019 9/30/2023
PD-FCT7 \3\................................ WAPA-184..................... 1/31/2019 9/30/2023
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Rate Schedules CAP-FT3, INT-FT5, and PD-FT7 apply to long-term and
short-term firm P2P transmission service. Rate Schedules CAP-NFT3, INT-
NFT4, and PD-NFT7 apply to nonfirm P2P transmission service. Rate
Schedules CAP-NITS3, INT-NTS4, and PD-NTS4 apply to Network
transmission service. Rate Schedules PD-F7 and PD-FCT7 apply to PDP FES
and transmission service of SLCA/IP power, respectively. Existing rate
schedules do not apply to ED5-PVH; rather, since the project began
commercial operation in 2015, DSW has charged for the use of ED5-PVH
facilities through a contractual arrangement with customers.\5\ The
facilities use charge for ED5-PVH is designed to recover all costs
incurred by WAPA in connection with the project including debt service,
operation, maintenance, replacements, and extraordinary repairs.
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\1\ Order Confirming and Approving Rate Schedules on a Final
Basis, Docket No. EF20-10-000.
\2\ Order Confirming and Approving Rate Schedules on a Final
Basis, Docket No. EF20-9-000.
\3\ Order Confirming and Approving Rate Schedules on a Final
Basis, Docket No. EF19-1-000.
\4\ Order Confirming and Approving Rate Schedules on a Final
Basis, Docket No. EF21-6-000.
\5\ The ED5-PVH is a 109-mile transmission project completed
under WAPA's Transmission Infrastructure Program (TIP). TIP was
established to implement Section 402 of the American Recovery and
Reinvestment Act and manage WAPA's $3.25 billion borrowing authority
to support projects facilitating the delivery of renewable resources
in the western United States. Public Law 111-5 (Feb. 17, 2009).
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The rates for transmission service on CAP, Intertie, and PDP, and
the facilities use charge for ED5-PVH, have substantially converged
over the last several years. DSW proposes to combine the rates and
charge into ``One Transmission Rate'' (OTR), which would be applicable
to these projects. The OTR would provide benefits to DSW's customers by
allowing more efficient scheduling and use of each project's
transmission facilities, eliminating multiple charges (rate pancaking)
among the transmission systems, and providing rate and financial
stability by having a larger revenue requirement and more diverse
customer base.
Although the transmission service rates and facilities use charge
would be combined under the OTR, the projects will remain separate for
financial accounting and repayment purposes. The proposed formula rates
under the OTR would provide sufficient revenue to recover annual
operation, maintenance, and replacement costs, interest expense, and
capital repayment requirements while ensuring repayment of the projects
within the cost recovery criteria set forth in Department of Energy
(DOE) Order RA 6120.2.
To implement the OTR, DSW is proposing new rate schedules
containing formula rates for firm and nonfirm P2P and Network
transmission service. These new schedules will supersede the existing
rate schedules for CAP, Intertie, and PDP transmission service and
replace the contractual charge for the use of ED5-PVH facilities. DSW
also proposes to make changes to the existing formula rates for PDP FES
and firm transmission service of SLCA/IP power so they align with the
new proposed rate schedule for firm P2P transmission service.
DSW's proposed formula rates for firm and nonfirm P2P and Network
transmission service under the OTR, along with PDP FES and firm
transmission service of SLCA/IP power, would go into effect on January
1, 2024, and remain in effect through September 30, 2028, or until DSW
changes the formula rates through another public rate process pursuant
to 10 CFR part 903, whichever occurs first. Since Rate Schedules INT-
FT5, PD-FT7, INT-NFT4, PD-NFT7, PD-F7, and PD-FCT7 expire on September
30, 2023, DSW has initiated a separate rate action to extend these rate
schedules to provide time to complete the public process for the OTR.
Firm Point-to-Point Transmission Service
DSW proposes a new rate schedule, DSW-FT1, for long-term and short-
term firm P2P transmission service on CAP, Intertie, PDP, and ED5-PVH.
This new rate schedule will contain formulas to calculate the rates for
firm P2P transmission service. For long-term
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transmission service (one year or longer), the annual rate for each
kilowatt per year (kW-year) will be equal to the combined annual
transmission revenue requirement (ATRR) of each project, which is the
amount of revenue that each project needs to cover the costs associated
with its transmission system, divided by the combined anticipated long-
term capacity reservations for each project, rounded to the nearest 12-
cent increment. For short-term transmission service (up to one year),
the maximum rate for each kilowatt will be equal to the annual long-
term rate divided by the applicable period of time (i.e., monthly,
weekly, daily and hourly) and rounded to five decimal places.
These long-term and short-term rates will be calculated annually
using updated financial and capacity reservation information, as
applicable. This new rate schedule will supersede Rate Schedules CAP-
FT3, INT-FT5, and PD-FT7.
Nonfirm Point-to-Point Transmission Service
DSW proposes a new rate schedule, DSW-NFT1, for nonfirm P2P
transmission service on CAP, Intertie, PDP, and ED5-PVH. This new rate
schedule will contain a formula to calculate the rate for nonfirm P2P
transmission service. The nonfirm rate will be calculated by dividing
the annual long-term rate for firm P2P transmission service by 8,760
hours and rounding to five decimal places. The rate will be calculated
annually using updated information, as applicable. This new rate
schedule will supersede Rate Schedules CAP-NFT3, INT-NFT4, and PD-NFT7.
Network Transmission Service
DSW proposes a new rate schedule, DSW-NTS1, for Network
transmission service on CAP, Intertie, PDP, and ED5-PVH. This new rate
schedule will contain a formula to calculate the monthly charge for
Network transmission service. The monthly charge will be determined by
multiplying the customer's load ratio share, the ratio of the
customer's network load to the transmission provider's total load,
times one twelfth (\1/12\) of the combined ATRR of each project. The
combined ATRR will be calculated annually using updated financial
information. This new rate schedule will supersede Rate Schedules CAP-
NITS3, INT-NTS4, and PD-NTS4.
PDP Firm Electric Service
DSW proposes to revise Rate Schedule PD-F7 so the transmission
charge aligns with the proposed new rate schedule, DSW-FT1, for long-
term and short-term firm P2P transmission service on CAP, Intertie,
PDP, and ED5-PVH. No changes are being proposed to the energy or
capacity charges. DSW also proposes to make other minor changes to Rate
Schedule PD-F7. Specifically, the rate schedule will be modified to
indicate that recently approved Rate Schedule DSW-UU1 \6\ will apply to
unauthorized transmission overruns. In addition, the section on
transmission losses will be deleted because it only pertained to
deliveries made with meters located at distribution voltage, a
situation that no longer exists for DSW. The revised rate schedule, PD-
F8, will supersede PD-F7.
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\6\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF21-6-000.
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PDP Transmission Service of SLCA/IP Power
DSW proposes to revise Rate Schedule PD-FCT7 to align with the
proposed new rate schedule, DSW-FT1, for long-term and short-term firm
P2P transmission service on CAP, Intertie, PDP, and ED5-PVH. DSW also
proposes to make minor changes to sections of Rate Schedule PD-FCT7
addressing adjustment for losses and overrun of capacity. Specifically,
the new rate schedule will be modified to reflect that recently
approved Rate Schedules DSW-TL1 and DSW-UU1 \7\ will apply to
transmission losses service and unreserved use, respectively. The
revised rate schedule, PD-FCT8, will supersede PD-FCT7.
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\7\ Ibid.
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Table of Rate Schedules
The table below provides a crosswalk from the existing rate
schedules to the proposed rate schedules.
Rate Schedules
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Existing Proposed
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CAP-FT3, INT-FT5 & PD-FT7................. DSW-FT1.
CAP-NFT3, INT-NFT4 & PD-NFT7.............. DSW-NFT1.
CAP-NITS3, INT-NTS4 & PD-NTS4............. DSW-NTS1.
PD-F7..................................... PD-F8.
PD-FCT7................................... PD-FCT8.
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Prepayment of Service
DSW proposes long-term firm P2P and Network transmission service
under Rate Schedules DSW-FT1 and DSW-NTS1 be prepaid one month in
advance and credited in a subsequent month. The Intertie and PDP long-
term firm P2P transmission customers currently prepay for service and
will experience no change. As discussed below, CAP long-term firm P2P
and PDP Network transmission customers and ED5-PVH facilities use
customers will start prepaying for service when the rate schedules
become effective.
The monthly prepayment for long-term firm P2P transmission service
will be based on the capacity reserved. The monthly prepayment for
Network transmission service will be based on the most recent bill.
Since transmission customers that currently do not prepay for service
will have two payments each month during the first two months, one for
service in arrears and one for prepayment, DSW proposes an optional
four-month transitional period to phase in prepayments. With a
transitional period, the two additional payments that are necessary
during the first two months will be evenly distributed over the first
four months to help mitigate the potential financial burden on
customers.
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.\8\ The proposed action
constitutes 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), DSW will hold
public information and public comment forums for this rate adjustment.
DSW will review and consider all timely public comments at the
conclusion of the consultation and comment period and adjust the
proposal as appropriate. The formula rates will then be approved on an
interim basis.
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\8\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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WAPA is establishing the formula rates for transmission and firm
electric service in accordance with section 302 of the DOE Organization
Act (42 U.S.C. 7152).\9\
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\9\ 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
[[Page 42358]]
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, memorandums, or other
documents that DSW initiates or uses to develop the proposed formula
rates are available on WAPA's website at <a href="http://www.wapa.gov/regions/DSW/Rates/Pages/OTR.aspx">www.wapa.gov/regions/DSW/Rates/Pages/OTR.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.\10\
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\10\ 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 5,
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 27, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-13974 Filed 6-29-23; 8:45 am]
BILLING CODE 6450-01-P
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