Notice2024-09665
Falcon and Amistad Projects-Rate Order No. WAPA-216
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
May 3, 2024
Effective
June 8, 2024
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The extension of the Colorado River Storage Project Management Center's (CRSP MC) existing Falcon and Amistad projects' firm power formula rate has been confirmed, approved, and placed into effect on an interim basis. The existing formula rate under Rate Schedule Falcon and Amistad Projects' Firm Power Formula Rate is set to expire on June 7, 2024. This rate extension makes no change to the existing formula rate and extends it through June 7, 2029.
Full Text
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<title>Federal Register, Volume 89 Issue 87 (Friday, May 3, 2024)</title>
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[Federal Register Volume 89, Number 87 (Friday, May 3, 2024)]
[Notices]
[Pages 36813-36814]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09665]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Falcon and Amistad Projects--Rate Order No. WAPA-216
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order extending firm power formula rate.
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SUMMARY: The extension of the Colorado River Storage Project Management
Center's (CRSP MC) existing Falcon and Amistad projects' firm power
formula rate has been confirmed, approved, and placed into effect on an
interim basis. The existing formula rate under Rate Schedule Falcon and
Amistad Projects' Firm Power Formula Rate is set to expire on June 7,
2024. This rate extension makes no change to the existing formula rate
and extends it through June 7, 2029.
DATES: The extended formula rate under Rate Schedule Falcon and Amistad
Projects' Firm Power Formula Rate will be placed into effect on an
interim basis on June 8, 2024.
FOR FURTHER INFORMATION CONTACT: Rodney G. Bailey, CRSP Manager,
Colorado River Storage Project Management Center, Western Area Power
Administration, P.O. Box 1800 South Rio Grande Drive, Montrose, CO
81401, or email: <a href="/cdn-cgi/l/email-protection#aeedfcfdfee3ed83dccfdacb83cfcac4eed9cfdecf80c9c1d8"><span class="__cf_email__" data-cfemail="d89b8a8b88959bf5aab9acbdf5b9bcb298afb9a8b9f6bfb7ae">[email protected]</span></a>, or Tamala D. Gheller, Rates
Manager, Colorado River Storage Project Management Center, Western Area
Power Administration, (970) 240-6545, or email: <a href="/cdn-cgi/l/email-protection#c5a2ada0a9a9a0b785b2a4b5a4eba2aab3"><span class="__cf_email__" data-cfemail="ea8d828f86868f98aa9d8b9a8bc48d859c">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Western Area Power Administration (WAPA)
published a Federal Register notice (Proposed FRN) on January 26, 2024
(89 FR 5226), proposing to extend the existing formula rate under Rate
Schedule Falcon and Amistad Projects' Firm Power Formula Rate. The
Proposed FRN also initiated a 30-day public consultation and comment
period. The consultation and comment period ended on February 26, 2024,
and the CRSP MC received no comments on the proposed formula rate
extension.
Legal Authority
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 the Federal Energy Regulatory
Commission (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. This extension is issued under Redelegation Order No.
S3-DEL-WAPA1-2023 and Department of Energy rate extension procedures
set forth in 10 CFR part 903.\1\
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\1\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Following review of the CRSP MC's proposal, Rate Order No. WAPA-216
is hereby confirmed, approved, and placed into effect on an interim
basis. This extends, without adjustment, the existing Rate Schedule
Falcon and Amistad Projects' Firm Power Formula Rate through June 7,
2029. WAPA will submit Rate Order No. WAPA-216 and the extended rate
schedule to FERC for confirmation and approval on a final basis.
DEPARTMENT OF ENERGY
ADMINISTRATOR, WESTERN AREA POWER ADMINISTRATION
In the Matter of: Western Area Power Administration, Extension for the
Falcon and Amistad Projects' Firm Power Formula Rate, Rate Order No.
WAPA-216
Order Confirming, Approving, and Placing the Falcon and Amistad
Projects' Firm Power Formula Rate Into Effect on an Interim Basis
The formula rate in Rate Order No. WAPA-216 is established
following section 302 of the Department of Energy (DOE) Organization
Act (42 U.S.C. 7152).\1\
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\1\ 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 Western Area Power Administration
(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 the
Federal Energy Regulatory Commission (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. This extension is issued under
Redelegation Order No. S3-DEL-WAPA1-2023 and DOE rate extension
procedures set forth in 10 CFR part 903.\2\
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\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Background
On June 20, 2019, FERC approved and confirmed Rate Schedule Falcon
and Amistad Projects' Firm Power Formula Rate under Rate Order No.
WAPA-186 on a final basis for a 5-year period through June 7, 2024.\3\
This rate schedule applies to firm energy sales. Details about the rate
schedule and the formula rate are viewable on Colorado River Storage
Project Management Center's (CRSP MC) website at: <a href="http://www.wapa.gov/about-wapa/regions/crsp/rates/rate-order-216">www.wapa.gov/about-wapa/regions/crsp/rates/rate-order-216</a>. The rate continues the formula-
based methodology that includes an annual update to the data in the
rate formula, which provides adequate revenue to recover annual
expenses, including interest expense, and repay capital investments
within allowable time periods. This formula rate ensures repayment
within the cost recovery criteria set forth in DOE Order RA 6120.2.
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\3\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF19-3-000, 167 FERC ] 62,187 (2019).
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Discussion
In accordance with 10 CFR 903.23(a), the CRSP MC filed a notice in
the Federal Register on January 26, 2024, proposing to extend, without
adjustment, Rate Schedule Falcon and
[[Page 36814]]
Amistad Projects' Firm Power Formula Rate under Rate Order No. WAPA-
216.\4\ The CRSP MC determined it was not necessary to hold public
information or public comment forums on the proposed formula rate
extension but provided a 30-day consultation and comment period to give
the public an opportunity to comment on the proposed extension. The
consultation and comment period ended on February 26, 2024, and the
CRSP MC received no comments on the proposed formula rate extension.
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\4\ 89 FR 5226 (2024).
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Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this action fits within the following
categorical exclusion listed in appendix B to subpart D of 10 CFR
1021.410: B4.3 (Electric power marketing rate changes). Categorically
excluded projects and activities do not require preparation of either
an environmental impact statement or an environmental assessment. A
copy of the categorical exclusion determination is available on CRSP
MC's website at: <a href="http://www.wapa.gov/about-wapa/regions/crsp/about-crsp/environment/">www.wapa.gov/about-wapa/regions/crsp/about-crsp/environment/</a>. Look for file titled, ``Falcon-Amistad Projects Rate
Extension--(CX Determination 2024-2029).''
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.
Submission to the Federal Energy Regulatory Commission
The provisional formula rate herein confirmed, approved, and placed
into effect on an interim basis, together with supporting documents,
will be submitted to FERC for confirmation and final approval.
Order
In view of the above and under the authority delegated to me, I
hereby confirm, approve, and place into effect, on an interim basis,
Rate Order No. WAPA-216, which extends the existing firm power formula
rate under Rate Schedule Falcon and Amistad Projects' Firm Power
Formula Rate through June 7, 2029. The rate will remain in effect on an
interim basis until: (1) FERC confirms and approves of this extension
on a final basis; (2) a subsequent rate is confirmed and approved; or
(3) such rate is superseded.
Signing Authority
This document of the Department of Energy was signed on April 29,
2024, 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 April 30, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
Rate Schedule Falcon and Amistad Projects' Firm Power Formula Rate
United States Department of Energy Western Area Power Administration
Colorado River Storage Project Management Center
Falcon and Amistad Projects
Firm Power Formula Rate Calculation (Approved Under Rate Order No.
WAPA-186)
Effective: The first day of the first full billing period beginning
on or after June 8, 1983, through June 7, 1988, or until superseded by
another formula, whichever occurs earlier. Note: Extension of this firm
power formula rate, for 5-year increments, was first approved by the
Federal Power Commission, predecessor of the Federal Energy Regulatory
Commission (FERC), on August 12, 1977. FERC has subsequently approved
the firm power formula rate on July 20, 1988, September 29, 1993, June
7, 1998, January 31, 2005, December 17, 2009, April 9, 2015, and June
20, 2019, for service through June 7, 2024. [Note: This rate schedule
was extended by Rate Order No. WAPA-216 through June 7, 2029.]
Available: In the area served by the Falcon and Amistad Projects
(Projects).
Applicable: To preference customers who are under contract with
Western Area Power Administration (WAPA) to receive electric service
from the Projects.
Formula Rate: The existing formula rate provides sufficient revenue
to recover annual expenses, interest, and capital replacements within
the cost recovery criteria set forth in DOE Order RA 6120.2. Annual
expenses generally include operational expenses, such as salaries and
benefits as well as incidental equipment costs. Equipment replacements
and maintenance beyond recurring activities are considered capital
replacements; these costs, along with the initial federal investment in
the Projects, are amortized with interest and repaid to the U.S.
Department of the Treasury. A reconciliation of estimates to actual
expenses is accomplished at the end of the rate period, and any
differences are included in the following year's revenue requirement.
Billing: WAPA bills the South Texas Electric Cooperative, the sole
customer that takes service from the Projects, on a monthly basis. Each
monthly charge is equal to one twelfth of the Projects' annual rate
installment, rounded to the penny.
[FR Doc. 2024-09665 Filed 5-2-24; 8:45 am]
BILLING CODE 6450-01-P
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</html>Indexed from Federal Register on May 3, 2024.
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