Notice2024-30863
Colorado River Storage Project-Rate Order No. WAPA-220
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
December 30, 2024
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 new formula rates for CRSP transmission and ancillary services for CRSP MC's costs to be recovered under the Southwest Power Pool's (SPP) Open Access Transmission Tariff (Tariff) should CRSP MC decide to become a member of SPP. The proposed formula rates will become effective on the latter of CRSP MC's membership date or the go-live date of the expansion of the SPP Regional Transmission Organization (RTO) into the Western Interconnection (scheduled for April 1, 2026, as of the date of this notice) and will remain in effect for 5 years from the effective date, which with an effective date of April 1, 2026, will be March 31, 2031, or until superseded.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 249 (Monday, December 30, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 249 (Monday, December 30, 2024)]
[Notices]
[Pages 106473-106475]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30863]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Colorado River Storage Project--Rate Order No. WAPA-220
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed transmission and ancillary services formula
rates.
-----------------------------------------------------------------------
SUMMARY: The Colorado River Storage Project (CRSP) Management Center
(MC) of the Western Area Power Administration (WAPA) proposes new
formula rates for CRSP transmission and ancillary services for CRSP
MC's costs to be recovered under the Southwest Power Pool's (SPP) Open
Access Transmission Tariff (Tariff) should CRSP MC decide to become a
member of SPP. The proposed formula rates will become effective on the
latter of CRSP MC's membership date or the go-live date of the
expansion of the SPP Regional Transmission Organization (RTO) into the
Western Interconnection (scheduled for April 1, 2026, as of the date of
this notice) and will remain in effect for 5 years from the effective
date, which with an effective date of April 1, 2026, will be March 31,
2031, or until superseded.
DATES: A consultation and comment period will begin December 30, 2024
and end March 31, 2025. CRSP MC will present a detailed explanation of
the proposed formula rates and other modifications at a public
information forum that will be held on February 19, 2025, at 2 p.m. MST
to no later than 3 p.m. MST. CRSP MC will also host a public comment
forum on February 19, 2025, at 3:15 p.m. MST to no later than 4 p.m.
MST. The public information forum and the public comment forum will be
conducted virtually. Instructions for participating in the forums will
be posted on CRSP MC's Rates website at least 14 days prior to the
public information and comment forums at: <a href="http://www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/">www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/</a>.
CRSP MC will accept 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:
Rodney G. 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#92d1c0c1c2dfd1bfe0f3e6f7bff3f6f8d2e5f3e2f3bcf5fde4"><span class="__cf_email__" data-cfemail="db9889888b9698f6a9baafbef6babfb19bacbaabbaf5bcb4ad">[email protected]</span></a>.
CRSP MC will post information about the proposed formula rates and
written comments received to its rates website at: <a href="http://www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/">www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/</a>.
FOR FURTHER INFORMATION CONTACT: 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#305758555c5c554270475140511e575f46"><span class="__cf_email__" data-cfemail="d1b6b9b4bdbdb4a391a6b0a1b0ffb6bea7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On April 28, 2023, WAPA published a Federal
Register notice titled ``Recommendation for the Western Area Power
Administration's Rocky Mountain Region and Colorado River Storage
Project Management Center to Pursue Final Negotiations Regarding
Membership in the Southwest Power Pool Regional Transmission
Organization, and for the Upper Great Plains Region to Expand its
Participation'' (88 FR 26298). On June 4, 2024, SPP submitted revisions
to its Tariff, Bylaws, and Membership Agreement to expand the SPP RTO
into the Western Interconnection to FERC.\1\ If SPP succeeds in
obtaining FERC's approval of its Tariff, Bylaws, and Membership
Agreement revisions, and upon further approval by the Administrator,
CRSP MC plans to become a member of SPP.\2\
---------------------------------------------------------------------------
\1\ Southwest Power Pool, Inc., Submission of Revisions to
Tariff, Bylaws, and Membership Agreement to Expand the Regional
Transmission Organization into the Western Interconnections (Part 1
of 2) and (Part 2 of 2), Docket Nos. ER24-2184, ER24-2185 (June 4,
2024).
\2\ WAPA's Rocky Mountain region also plans to become a member
of the SPP RTO, and WAPA's Upper Great Plains region plans to expand
its membership participation in the SPP RTO. These regions are
proposing new formula rate designs/rate schedules under separate
Rate Order Nos. WAPA-219 and WAPA-218, respectively.
---------------------------------------------------------------------------
[[Page 106474]]
CRSP MC's membership will include CRSP MC becoming a Transmission
Owner member of SPP. WAPA will transfer functional control of eligible
CRSP transmission facilities to SPP. At such time, for the eligible
facilities, CRSP transmission and ancillary services will no longer be
available under WAPA's Tariff, and the existing transmission and
ancillary services rate schedules, specifically SP-NW6, SP-PTP10, SP-
NFT9, SP-UU3, L-AS1, L-AS2, L-AS3, SP-EI6, SP-SSR6, will no longer be
applicable.
CRSP transmission service for these eligible facilities will be
provided under the SPP Tariff by SPP as the transmission service
provider. Accordingly, CRSP MC will need new rate designs/rate
schedules and rate implementation protocols in place for specific costs
to be recovered under the SPP Tariff.
CRSP MC will continue to be the transmission service provider for
specific transmission facilities associated with serving a customer
group in its Southern Division marketing area, who requested a pseudo-
tie into the Western Area Lower Colorado Balancing Authority (WALC BA).
CRSP MC will provide firm transmission service to serve this pseudo-tie
and will not transfer functional control of such facilities to SPP.
As of the date of this notice, SPP's anticipated deadline for
filing certain SPP Tariff documents for CRSP MC (including annual
revenue requirements (ARR), formula rate templates, and formula rate
implementation protocols proposed in this rate filing, as well as other
pertinent documents not included in this rate filing) with FERC is
October 2025. CRSP MC is publishing this notice of proposed formula
rates and initiating the rate consultation and comment period at this
time in order for CRSP MC to obtain FERC-approved formula rates prior
to this SPP deadline.
If CRSP MC does not become a member of SPP, further actions under
this notice of proposed rates will be canceled, and existing formula
rates will remain in effect. If canceled, CRSP MC will inform customers
by letter and by posting notice of such on CRSP MC's Rates website
(<a href="http://www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/">www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/</a>) and will withdraw the formula
rates proposed in this notice.
CRSP MC is proposing a new formula rate to calculate the ARR for
its CRSP transmission facilities that will be transferred to the
functional control of SPP under the SPP Tariff. CRSP MC is also
proposing a new formula rate to calculate the ARR for Scheduling,
System Control, and Dispatch Service (SSCD Service) under the SPP
Tariff. CRSP MC's revenue requirements will be added to the annual
revenue requirements of other transmission owners in the SPP pricing
Zone 103, also identified as the Colorado River Storage Project Zone
(CRSPZ), for transmission service billed by SPP within the CRSPZ. CRSP
MC's revenue requirements under these proposed rates will also impact
other costs for transmission service within the broader SPP footprint.
For transmission and ancillary services provided under the SPP Tariff,
CRSP MC also proposes to provide information related to CRSP MC's rate
implementation and annual updates in ``Formula Rate Implementation
Protocols'' (Protocols). CRSP MC is also proposing changes to its
existing Firm Point-to-Point (PTP) Transmission Service rate design in
order to accommodate transmission service deliveries into the WALC BA.
Each of these topics is described in more detail below.
The proposed formula rates will provide sufficient revenue to
recover annual operation, maintenance, replacement, and interest
expense while ensuring repayment of the project within the cost
recovery criteria set forth in Department of Energy (DOE) Order
RA6120.2. For more specific information on the proposed formula rates,
please see the customer rate brochure located on CRSP MC's Rates
website at: <a href="http://www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/">www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/</a>.
Proposed Transmission Formula Rate
For transmission service provided by SPP under SPP's Tariff, under
Rate Schedule CRCMT-ATRR, CRSP MC proposes to provide its overall CRSP
annual transmission revenue requirement (ATRR) as separate subtotals to
distinguish CRSP transmission facilities in the CRSPZ from facilities
in other SPP zones. SPP will utilize these CRSP ATRR subtotals, along
with zonal and regional load and other applicable information, to
calculate the applicable charges and revenue distribution for SPP
transmission service under the SPP Tariff.
Consistent with CRSP MC's current transmission formula rates, CRSP
MC proposes to continue recovering transmission-related expenses and
investments on a forward-looking basis by using projections to estimate
transmission costs for the upcoming year, with a true-up of incurred
costs in a subsequent year. Transmission-related annual costs include
operation and maintenance, administrative and general costs, interest,
and depreciation. The annual costs will be reduced by applicable
revenue credits received by CRSP MC under the SPP Tariff.
Revenue requirement data will be submitted to SPP in standard
formula rate templates with costs classified as either ``Zonal'' or
``Regional,'' applying the definitions in the SPP Tariff. ``Zonal''
costs are those that meet certain criteria and are recovered within the
local pricing zone, while ``Regional'' costs are those meeting certain
criteria eligible to be recovered across SPP's Western BA area. The
Formula Rate Template for the CRSP ATRR and related information will be
posted on CRSP MC's Colorado River Colorado Missouri (CRCM) Open Access
Same-Time Information System (OASIS) website (<a href="http://www.oasis.oati.com/CRCM/index.html">www.oasis.oati.com/CRCM/index.html</a>), on CRSP MC's Rates website (<a href="http://www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/">www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/</a>), and on SPP's Member Related Postings website
(<a href="http://opsportal.spp.org/OASIS/Directory/Member%20Related%20Postings">opsportal.spp.org/OASIS/Directory/Member%20Related%20Postings</a>).
Proposed Formula Rate for Scheduling, System Control, and Dispatch
Service
SSCD Service is required to operate a Transmission Owner's SPP
Tariff facilities and schedule movement of power through, out of,
within, or into one or both of the SPP BA areas and certain parts of
the transmission system not located within a SPP BA area. Under this
proposal, CRSP MC's ARR for SSCD Service, under Rate Schedule CRCMT-
AS1, will be submitted to SPP in a standard formula rate template for
inclusion in the SPP Tariff Schedule 1. The SSCD Service ARR will be
used by SPP to determine the regional SPP Schedule 1 rate and revenue
distribution for SPP through-and-out transactions and to determine the
zonal SPP Schedule 1 rate and revenue distribution for the CRSPZ under
the SPP Tariff.
For consistency with the CRSP ATRR proposal, CRSP MC proposes a
formula-based rate methodology to calculate its SSCD Service ARR on a
forward-looking basis by using projections to estimate costs associated
with SSCD Service for the upcoming year, with a true-up of incurred
costs in a subsequent year. CRSP MC's SSCD Service ARR will be derived
by calculating CRSP MC's
[[Page 106475]]
applicable annual costs associated with the provision of SSCD Service,
including operation and maintenance, administrative and general,
interest, and depreciation. The annual costs will be reduced by any
applicable revenue received by CRSP MC under the SPP Tariff. The
Formula Rate Template for the SSCD Service and related information will
be posted on CRSP MC's CRCM OASIS website, on CRSP MC's Rates website,
and on SPP's Member Related Postings website (see web addresses listed
previously).
Formula Rate Implementation Protocols
For transmission service provided by SPP under SPP's Tariff, CRSP
MC proposes to provide information relating to CRSP MC's rate
implementation and annual update procedures and timelines in ``Formula
Rate Implementation Protocols'' (Protocols). The Protocols, together
with the above-mentioned formula rate templates, comprise the Formula
Rates that will be submitted to SPP to be incorporated in the SPP
Tariff. All relevant information pertaining to CRSP MC's annual
updates, customer notifications and review periods, and meetings will
be contained in the Protocols. The Protocols will be posted on CRSP
MC's CRCM OASIS website, on CRSP MC's Rates website, and on SPP's
Member Related Postings website (see web addresses listed previously).
CRSP Deliveries Into WALC BA
CRSP MC proposes to pseudo-tie certain generation into the WALC BA
to serve a group of customers in its Southern Division marketing area.
As part of these arrangements, CRSP MC will retain a portion of its
transmission system from Glen Canyon to Pinnacle Peak under WAPA's
functional control and under WAPA's Tariff. Accordingly, this
identified portion of CRSP MC transmission system will not be
transferred to SPP's functional control and will not be governed by
SPP's Tariff.
For transmission service provided by CRSP MC under WAPA's Tariff,
under Rate Schedule CRCMT-PTP, CRSP MC proposes a revenue requirement
consistent with CRSP MC's current PTP Transmission Formula Rate. For
consistency with the CRSP ATRR proposal, and consistent with CRSP MC's
current transmission formula rates, CRSP MC proposes to continue
recovering transmission-related expenses and investments on a forward-
looking basis by using projections to estimate transmission costs for
the upcoming year, with a true-up of incurred costs in a subsequent
year. Transmission-related annual costs include operation and
maintenance, administrative and general costs, interest, and
depreciation. The Formula Rate Template for the CRSP PTP ATRR and
related information will be posted on CRSP MC's CRCM OASIS website and
on CRSP MC's Rates website (see web addresses listed previously).
Legal Authority
DOE procedures for public participation in power and transmission
rate adjustments are located at 10 CFR part 903. 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.
WAPA is establishing the formula rates for CRSP in accordance with
section 302 of the DOE Organization Act (42 U.S.C. 7152).\3\
---------------------------------------------------------------------------
\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 section 5 of the Flood Control Act of 1944 (16 U.S.C.
825s); and other acts that specifically apply to the projects
involved.
---------------------------------------------------------------------------
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-S3-2024, effective August 30, 2024, 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 CRSP MC initiates or uses to develop the proposed
formula 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 CRSP MC's Rates website
at: <a href="http://www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/">www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/</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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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
19, 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 December 19, 2024.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-30863 Filed 12-27-24; 8:45 am]
BILLING CODE 6450-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 30, 2024.
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.