Notice2023-21694
Bonneville Power Administration; Order Approving Rates on an Interim Basis and Providing Opportunity for Additional Comments
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Published
October 2, 2023
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
Full Text
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<title>Federal Register, Volume 88 Issue 189 (Monday, October 2, 2023)</title>
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[Federal Register Volume 88, Number 189 (Monday, October 2, 2023)]
[Notices]
[Pages 67745-67747]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-21694]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. EF23-7-000]
Bonneville Power Administration; Order Approving Rates on an
Interim Basis and Providing Opportunity for Additional Comments
Before Commissioners: Willie L. Phillips, Acting Chairman; James P.
Danly, Allison Clements, and Mark C. Christie.
1. In this order, we approve Bonneville Power Administration's
(Bonneville) proposed fiscal years 2024-2025 wholesale power and
transmission rates on an interim basis, pending our further review. We
also provide an additional period of time for the parties to file
comments.
I. Background
2. On July 28, 2023, Bonneville filed a request for interim and
final approval of its proposed wholesale power \1\ and transmission
rates \2\ in accordance with the Pacific Northwest Electric Power
Planning and Conservation Act (Northwest Power Act) \3\ and Subpart B
of part 300 of the Commission's regulations.\4\ Bonneville projects
that the filed rates will produce average annual power revenues of
$3.144 billion and average annual transmission revenues of $1.264
billion. Bonneville asserts that this level of annual revenues is
sufficient to recover its costs for the fiscal years 2024-2025 rate
approval period, while providing cash flow to assure at least a 95%
probability of making all payments to the United States Treasury in
full and on time for each year of the fiscal years 2024-2025 rate
approval period.
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\1\ The proposed wholesale power rates for which Bonneville
seeks approval for fiscal years 2024-2025 are: Priority Firm Power
Rate (PF-24); New Resource Firm Power Rate (NR-24); Industrial Firm
Power Rate (IP-24); Firm Power and Surplus Products and Services
Rate (FPS-24). Bonneville also seeks approval of related General
Rates Schedule Provisions for the same period. Fiscal years 2024-
2025 is the period October 1, 2023, through September 30, 2025.
\2\ The proposed transmission and ancillary services rates
(referred to collectively as transmission rates) for which
Bonneville seeks approval for fiscal years 2024-2025 are: Formula
Power Transmission Rate (FPT-24.1); Network Integration Rate (NT-
24); Point-to-Point Rate (PTP-24); Southern Intertie Rate (IS-24);
Montana Intertie Rate (IM-24); Use-of-Facilities Transmission Rate
(UFT-24); Advance Funding Rate (AF-24); Townsend-Garrison
Transmission Rate (TGT-24); Regional Compliance Enforcement and
Regional Coordinator Rates (RC-24); Oversupply Rate (OS-24); Eastern
Intertie Rate (IE-24); and Ancillary and Control Area Services Rates
(ACS-24). Bonneville also seeks approval of related General Rates
Schedule Provisions for the same period.
\3\ 16 U.S.C. 839e(i).
\4\ 18 CFR 300.10-300.14 (2022).
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II. Notice of Filing
3. Notice of Bonneville's application was published in the Federal
Register, 88 FR 53,480 (Aug. 8, 2023), with interventions and protests
due on or before August 28, 2023. Timely motions to intervene were
filed by Public Power Council, M-S-R Public Power Agency, and Powerex
Corp. The Confederated Tribes and Bands of the Yakama Nation and the
Confederated Tribes of the Umatilla Indian Reservation (together,
Treaty Tribes), along with the Columbia River Inter-Tribal Fish
Commission (collectively, Tribal Parties) filed a motion to intervene.
On September 5, 2023, Bonneville filed a request for leave to answer
and an answer to the Tribal Parties' motion to intervene.
4. The Tribal Parties assert that Bonneville's rates during the
2024-2025 rate period are insufficient to assure repayment of the
federal investment in the Federal Columbia River Power System, and are
not based on Bonneville's total system costs.\5\ The Tribal Parties
contend that the Bonneville Administrator failed to take into account
Bonneville's obligations under the Treaty Tribes' respective treaties
as directly applicable to Bonneville and as incorporated through the
Northwest Power Act.\6\ The Tribal Parties further assert that, under
the Northwest Power Act, the proposed fiscal years 2024-2025 rates fail
to afford equal treatment between fish and wildlife and power
interests, and are not consistent with the Northwest Power and
Conservation Council (NPCC) Fish and Wildlife Program.\7\
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\5\ Tribal Parties Motion to Intervene at 2 (citing 16 U.S.C.
839e(a)(2)(a)-(b)).
\6\ Id. (citing 16 U.S.C. 839e(k)).
\7\ Id.
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5. In Bonneville's answer, Bonneville states that the Commission
should approve Bonneville's proposed rates as requested.\8\ Bonneville
asserts that the Tribal Parties' arguments fall outside the
Commission's limited jurisdiction over Bonneville's power and
transmission rates established by section 7(a)(2) of the Northwest
Power Act.\9\ Bonneville argues that the Commission has previously
concluded that the Commission does not second guess Bonneville's
decisions on fish and wildlife issues, and that the Commission's review
is not the proper forum to challenge Bonneville's cost projections.\10\
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\8\ Bonneville Answer at 3.
\9\ Id. (citing 16 U.S.C. 839e(a)(2)).
\10\ Id. at 5 (citing U.S. Dep't of Energy--Bonneville Power
Admin., 105 FERC ] 61,068, at P 10 (2003)).
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6. Bonneville contends that the Commission previously considered
the issue of whether Bonneville's rates failed to afford ``equitable
treatment'' to fish and wildlife under section 4(h)(11)(A) of the
Northwest Power Act. Bonneville argues that the Commission correctly
concluded that ``Bonneville's compliance with its environmental review
and fish and wildlife protection obligation . . . is outside the scope
of the Commission's review under section 7(a)(2).'' \11\
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\11\ Id. (citing Bonneville Power Admin, 178 FERC ] 61,211, at P
13 (2022)).
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7. In response to the Tribal Parties' claim that Bonneville's rates
are not
[[Page 67746]]
consistent with the NPCC Fish and Wildlife Program, Bonneville argues
that this issue also concerns Bonneville's fish and wildlife cost
projections and whether those projections are (or must be) consistent
with the NPCC's Fish and Wildlife Program. Bonneville states that the
Commission has previously addressed this issue, noting correctly that
``issues related to the amount of money [Bonneville] plans to spend on
fish and wildlife under the [NPCC's] fish and wildlife [program]'' are
outside of the Commission's scope of review.\12\
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\12\ Id. at 6 (citing U.S. Dep't of Energy--Bonneville Power
Admin., 32 FERC ] 61,014, at n.15 (1985)).
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8. Bonneville further argues that the Tribal Parties misstate the
procedures applicable to this proceeding when the Tribal Parties note
that ``parties in the [Bonneville] rate proceedings `shall be afforded
an opportunity by the Commission for an additional hearing.''' \13\
Bonneville argues that the Tribal Parties do not request such a hearing
and explains that the referenced hearing opportunity in section 7(k) of
the Northwest Power Act is inapplicable to the Commission's review of
Bonneville's fiscal years 2024-2025 rates. Bonneville states that
section 7(k) applies to the sale of ``nonfirm electric power within the
United States, but outside the region,'' which is not at issue in this
proceeding.\14\
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\13\ Id. (citing Tribal Parties Motion to Intervene at 1 (citing
16 U.S.C. 839e(k))).
\14\ Id. (quoting 16 U.S.C. 839e(k)).
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III. Discussion
A. Procedural Matters
9. Pursuant to Rule 214 of the Commission's Rules of Practice and
Procedure, 18 CFR 385.214 (2022), the timely, unopposed motion to
intervene serve to make the entities that filed them parties to this
proceeding.
10. Rule 213(a)(2) of the Commission's Rules of Practice and
Procedure, 18 CFR 385.213(a)(2), prohibits an answer to a protest
unless otherwise ordered by the decisional authority. We will accept
Bonneville's answer because it has provided information that assisted
us in our decision-making process.
B. Standard of Review
11. Under the Northwest Power Act, the Commission's review of
Bonneville's proposed regional power and transmission rates is limited
to determining whether Bonneville's proposed rates meet the three
specific requirements of section 7(a)(2) of the Northwest Power
Act:\15\
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\15\ 16 U.S.C. 839e(a)(2). Bonneville also must comply with the
financial, accounting, and ratemaking requirements in Department of
Energy Order No. RA 6120.2.
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(A) they must be sufficient to assure repayment of the Federal
investment in the Federal Columbia River Power System over a reasonable
number of years after first meeting Bonneville's other costs;
(B) they must be based upon Bonneville's total system costs; and
(C) insofar as transmission rates are concerned, they must
equitably allocate the costs of the Federal transmission system between
Federal and non-Federal power.
12. Commission review of Bonneville's non-regional, non-firm rates
also is limited. Review is restricted to determining whether such rates
meet the requirements of section 7(k) of the Northwest Power Act,\16\
which requires that they comply with the Bonneville Project Act, the
Flood Control Act of 1944, and the Federal Columbia River Transmission
System Act. Taken together, those statutes require that Bonneville's
non-regional, non-firm rates:
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\16\ Id. Sec. 839e(k).
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(A) recover the cost of generation and transmission of such
electric energy, including the amortization of investments in the power
projects within a reasonable period;
(B) encourage the most widespread use of Bonneville power; and
(C) provide the lowest possible rates to consumers consistent with
sound business principles.
13. Unlike the Commission's statutory authority under the Federal
Power Act, the Commission's authority under sections 7(a) and 7(k) of
the Northwest Power Act does not include the power to modify the rates.
The responsibility for developing rates in the first instance is vested
with Bonneville's Administrator. The rates are then submitted to the
Commission for approval or disapproval. In this regard, the
Commission's role can be viewed as an appellate one: to affirm or
remand the rates submitted to it for review.\17\
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\17\ See, e.g., U.S. Dep't of Energy--Bonneville Power Admin.,
67 FERC ] 61,351, at 62,216-17 (1994); Aluminum Co. of Am. v.
Bonneville Power Admin., 903 F.2d 585, 592-93 (9th Cir. 1989).
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14. Moreover, review at this interim stage is further limited. In
view of the volume and complexity of a Bonneville rate application,
such as the one now before the Commission in this filing, and the
limited period in advance of the requested effective date in which to
review the application,\18\ the Commission generally defers resolution
of issues on the merits of Bonneville's application until the order on
final confirmation. Thus, the proposed rates, if not patently
deficient, generally are approved on an interim basis and the parties
are afforded an additional opportunity in which to raise issues with
regard to Bonneville's application.\19\
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\18\ See 18 CFR 300.10(a)(3)(ii).
\19\ See, e.g., U.S. Dep't of Energy--Bonneville Power Admin.,
160 FERC ] 61,113, at P 6 (2017).
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15. The Commission declines at this time to grant final
confirmation and approval of Bonneville's proposed wholesale power and
transmission rates. The Commission's preliminary review nevertheless
indicates that Bonneville's wholesale power and transmission rates
application appears to meet the statutory standards and the minimum
threshold filing requirements of part 300 of the Commission's
regulations.\20\ Moreover, the Commission's preliminary review of
Bonneville's application indicates that it does not contain any patent
deficiencies. The proposed rates therefore will be approved on an
interim basis pending full review for final approval. We note, as well,
that no one will be harmed by this decision because interim approval
allows Bonneville's rates to go into effect subject to refund with
interest; the Commission may order refunds with interest if the
Commission later determines in its final decision not to approve the
rates.\21\
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\20\ See, e.g., id. P 13.
\21\ 18 CFR 300.20(c) (2022).
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16. In addition, we will provide an additional period of time for
parties to file comments and reply comments on issues related to final
confirmation and approval of Bonneville's proposed rates. This will
ensure that the record in this proceeding is complete and fully
developed.
The Commission orders:
(A) Interim approval of Bonneville's proposed wholesale power and
transmission rates for fiscal years 2024-2025 is hereby granted, to be
effective October 1, 2023, through September 30, 2025, subject to
refund with interest as set forth in section 300.20(c) of the
Commission's regulations,\22\ pending final action and either their
approval or disapproval.
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\22\ Id.
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(B) Within 30 days of the date of this order, parties who wish to
do so may file additional comments regarding final confirmation and
approval of Bonneville's proposed rates. Parties who wish to do so may
file reply comments within 20 days thereafter.
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(C) The Secretary shall promptly publish this order in the Federal
Register.
By the Commission.
Issued: September 26, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-21694 Filed 9-29-23; 8:45 am]
BILLING CODE 6717-01-P
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