Notice2025-17843
Notice of Interim Approval of Rate Schedules for Cumberland System of Projects
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
September 16, 2025
Effective
October 1, 2025
Issuing agencies
Energy DepartmentSoutheastern Power Administration
Abstract
The Administrator for the Southeastern Power Administration (Southeastern) has confirmed and approved, on an interim basis, rate schedules CBR-1-K, CSI-1-K, CEK-1-K, CM-1-K, CC-1-L, CK-1-K, CTV-1-K, CTVI-1-D, and Replacement-3. These rate schedules are applicable to Southeastern power sold to existing preference customers in Alabama, Georgia, Illinois, Kentucky, Mississippi, North Carolina, Tennessee, and Virginia. The rate schedules are approved on an interim basis through September 30, 2030, and are subject to confirmation and approval by the Federal Energy Regulatory Commission (FERC) on a final basis.
Full Text
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<title>Federal Register, Volume 90 Issue 177 (Tuesday, September 16, 2025)</title>
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[Federal Register Volume 90, Number 177 (Tuesday, September 16, 2025)]
[Notices]
[Pages 44657-44665]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17843]
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DEPARTMENT OF ENERGY
Southeastern Power Administration
Notice of Interim Approval of Rate Schedules for Cumberland
System of Projects
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of interim approval.
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SUMMARY: The Administrator for the Southeastern Power Administration
(Southeastern) has confirmed and approved, on an interim basis, rate
schedules CBR-1-K, CSI-1-K, CEK-1-K, CM-1-K, CC-1-L, CK-1-K, CTV-1-K,
CTVI-1-D, and Replacement-3. These rate schedules are applicable to
Southeastern power sold to existing preference customers in Alabama,
Georgia, Illinois, Kentucky, Mississippi, North Carolina, Tennessee,
and Virginia. The rate schedules are approved on an interim basis
through September 30, 2030, and are subject to confirmation and
approval by the Federal Energy Regulatory Commission (FERC) on a final
basis.
DATES: Approval of rates on an interim basis is effective on October 1,
2025.
FOR FURTHER INFORMATION CONTACT: Carter B. Edge, Assistant
Administrator for Finance and Marketing, Southeastern Power
Administration, Department of Energy, 1166 Athens Tech Road, Elberton,
Georgia 30635-6711, (706) 213-3800; Email: <a href="/cdn-cgi/l/email-protection#edae8c9f99889fc3a8898a88ad9e889d8cc3898288c38a829b"><span class="__cf_email__" data-cfemail="b7f4d6c5c3d2c599f2d3d0d2f7c4d2c7d699d3d8d299d0d8c1">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: FERC, by Order issued November 5, 2020, in
Docket No. EF20-6-000 (Accession No.: 20201105-3018), confirmed and
approved Wholesale Power Rate Schedules CBR-1-J, CSI-1-J, CEK-1-J, CM-
1-J, CC-1-K, CK-1-J, CTV-1-J, CTVI-1-C and Replacement-3 for the period
October 1, 2020, through September 30, 2025. This order replaces these
rate schedules on an interim basis, subject to final approval by FERC.
Department of Energy
Administrator, Southeastern Power Administration
In the Matter of: Southeastern Power Administration, Cumberland System
Power Rates, Rate Order No. SEPA-68
Order Confirming and Approving Power Rates on an Interim Basis
Rate Order No. SEPA-68 and associated rate schedules are applicable
to Southeastern Power Administration (Southeastern) power sold to
existing preference customers in Alabama, Georgia, Illinois, Kentucky,
Mississippi, North Carolina, Tennessee, and Virginia. The rate
schedules are approved on an interim basis, effective October 1, 2025,
through September 30, 2030, and are subject to confirmation and
approval by the Federal Energy Regulatory Commission (FERC) on a final
basis.
Background
Power from the Cumberland System is presently sold under Wholesale
Power Rate Schedules CBR-1-J, CSI-1-J, CEK-1-J, CM-1-J, CC-1-K, CK-1-J,
CTV-1-J, CTVI-1-C and Replacement-3. These rate schedules were approved
by the FERC in docket number EF20-6-000 on November 5, 2020, for a
period ending September 30, 2025 (Accession No.: 20201105-3018).
Public Notice and Comment
Notice of a proposed rate adjustment was published in the Federal
Register May 15, 2025 (90 FR 20668). Southeastern proposed an increase
to existing rate schedules and continuation of the annual true-up
adjustment for the sale of power from the Cumberland System effective
October 1, 2025, through September 30, 2030. The notice advised
interested parties of a public information and comment forum to be held
in Elberton, Georgia, and also virtually by Microsoft Teams, on June
17, 2025. Written comments were accepted through August 13, 2025.
The rate schedules recover cost from capacity, energy, and
additional energy. The revenue requirement proposed at the forum was
$81,750,000 per year. The rates proposed were as follows:
Cumberland System Rates
Original Marketing Policy
Inside TVA Preference Customers
Capacity and Base Energy: $4.484 per kW/Month.
Additional Energy: 17.088 mills per kWh.
Transmission: Pass-through.
Outside TVA Preference Customers (Excluding Customers Served Through
Duke Energy Progress or East Kentucky Power Cooperative)
Capacity and Base Energy: $4.484 per kW/Month.
Additional Energy: 17.088 mills per kWh.
Transmission: Monthly TVA Transmission Charge divided by
545,000.
Customers Served Through Duke Energy Progress
Capacity and Base Energy: $5.076 per kW/Month.
TVA Transmission: TVA rate at border as computed above, adjusted
for DEP delivery.
East Kentucky Power Cooperative
Capacity: $2.348 per kW/Month.
Energy: 17.088 mills per kWh.
Transmission: Monthly TVA Transmission Charge divided by
545,000.
The proposed rate schedules continue adjustments annually on April
1 of each year, based on transfers of specific power investment to
plant-in-service for the preceding fiscal year, to the base demand
charge and base additional energy charge. The annual adjustment will
be, for each increase of $1,000,000 to specific power plant-in-service,
an increase of $0.003 per kilowatt per month added to the base capacity
rate and an increase of 0.013 mills per kilowatt-hour added to the base
additional energy rate. Southeastern will give written notice to the
customers of the amount of the true-up by February 1 of each year.
[[Page 44658]]
Public Comments
Southeastern received oral comments from one participant as part of
the public information and comment forum on June 17, 2025. Southeastern
received written comments mirroring the oral comments provided in the
public information and comment forum from the same representing
organization as the forum participant.
The comments are summarized below. Southeastern's responses are
provided.
Comment 1: In our review of the supplemental rate materials that
SEPA has provided, and as discussed below, we believe the Administrator
has exercised his authority under the Flood Control Act of 1944 to keep
rates as low as possible consistent with sound business principles, but
further action should be taken. Notably, we observe that in certain
instances, hydropower customers are being asked to assume cost
responsibility for flood control expenses which should be assigned
fully to flood control for reimbursement.
Response to Comment 1: Southeastern's Administrator agrees that
protecting hydropower customers from bearing costs unrelated to
hydropower is a priority, and other such costs should be properly
attributed to the relevant purposes of the projects. Southeastern
realizes there are flood control or flood risk management costs applied
to the hydropower portion of the joint share. Southeastern's
Administrator has the responsibility to determine which costs are
appropriate and is obligated to prudently follow sound business
principles in recovering costs associated with generating hydropower,
including the amortization of capital Federal investment and
appropriate joint costs allocated to power. Southeastern is continuing
to monitor the Corps' charging practices and coordination efforts to
ensure charging practices result in appropriate cost allocation.
Comment 2: The revised repayment materials provided by SEPA
indicate that power customers of the Cumberland System of Projects will
be paying for accumulated deficits over the course of the next five
years, which raises concerns about the prior rate and whether SEPA
waited too long to publish a revised rate. . .. While the SeFPC
recognizes that the proposed rate must recover all accumulated
deficits, the Customers have concerns that SEPA did not propose the
rate increase in the prior fiscal year. Specifically, the SeFPC
believes that SEPA should have recognized the significant increase in
incremental investment in the prior fiscal year and proposed a rate
increase in 2024. This action would have avoided the accumulated
deficit and associated interest charge which must be recovered in the
proposed rate.
Response to Comment 2: Annual power repayment studies are conducted
to ensure current rates are adequate. Annual studies use the Corps' and
Southeastern's Fiscal Year end combined financial statements. Yearly,
the unamortized investment was below the allowable investment
indicating the cost recovery criteria was being met. In the Fiscal Year
2023 annual repayment study no capitalized deficits were incurred, and
a cumulative surplus was observed. In the Fiscal Year 2024 annual
repayment study, upon entering data from the Corps' and Southeastern's
Fiscal Year 2024 combined financials, the study revealed the Fiscal
Year 2024 operating expenses and interest exceeded revenues, resulting
in a $9M capitalized deficit. The increase in incremental investment
for Fiscal Year 2024 was from actuals reported in the Corps' Fiscal
Year 2024 financial statements. Southeastern received the Corps' Fiscal
Year 2025 five-year projections and used them in the annual repayment
study's cost recovery period to test the adequacy of current rates. The
current rates were determined to be inadequate to recover projected
annual costs, interest, and repayment of capitalized Federal investment
prompting the need for revised rates.
Comment 3: The SeFPC believes that the costs of all spillway
repairs should be eliminated from the rate. In supplemental materials
provided to the organization after the forum convened on June 17th, we
have observed that certain spillway capital costs have been included in
the proposed rate while others have been excluded. Given that spillways
support flood control or flood risk management, all costs assessed to
hydropower for spillway repairs and rehabilitation should be assigned
to flood control or flood risk management and excluded for recovery in
the rates charged to hydropower.
Response to Comment 3: Southeastern's Administrator agrees not all
spillway repairs should be assigned to hydropower and inappropriate
costs should be eliminated from rates. The proposed rates exclude
expenditures related to the spillway gate refurbishment at Center Hill
and Wolf Creek projects. The projected cost of $54.4M at the Center
Hill project and $83.8M at the Wolf Creek project over the five-year
cost evaluation period were excluded from the proposed rates. These
work items are funded by Public Law 117-43: Extending Govt Funding and
Delivering Emergency Assistance Act 2022 supplemental appropriations.
They do not carry the express intent of Congress to be reimbursable and
decisions on which work items to be funded were made after the
appropriation was made. The Administrator determined (because similar
work at other dams without joint cost recovery mechanism is being
performed at full Federal cost to the ``Flood Damage Reduction
Riverine'' business program) these projected costs are not appropriate
to assign joint responsibility. Decisions regarding which prudent
additions to Federal investment should be recovered through power
revenues will be made on a case-by-case basis. Other capitalized
expenditures for spillway gates in the projections are considered
ongoing maintenance and repair of original equipment/investment.
Southeastern deems the remaining capitalized expenditures for spillway
gates are appropriate, at this time, to include in the proposed rates.
Southeastern continues coordination efforts to work with the Corps to
ensure charging practices result in appropriate cost allocation,
including prudent additions to the Federal investment.
Comment 4: An evaluation should be performed for costs associated
with workman's compensation and retirement benefits for U.S. Army Corps
of Engineers (``Corps'') personnel. Here, appropriate due diligence is
in order to determine whether all such costs are related to personnel
who solely support hydropower and no other Corps functions.
Response to Comment 4: Southeastern confirmed with the Corps their
Worker's Compensation and Retirement Benefit costs are related to
hydropower personnel supporting hydropower functions. Southeastern is
currently evaluating the Corps' unaudited, revised multi-purpose
pension and post-retirement benefit reports from prior years that have
recently been provided to Southeastern. Southeastern is conducting a
thorough assessment of the potential rate impacts resulting from the
revised pension and post-retirement benefit expense amounts.
Southeastern received the Fiscal Year 2018 through Fiscal Year 2024
revised Multi-Purpose Pension and Post-Retirement Benefit reports from
the Corps on August 7, 2025. The revised reports are currently
unaudited. However, Southeastern has confidence that revised pension
and post-retirement benefit projections are appropriate and conducted a
revised repayment study to reflect the updated expense projections
using the corrected unaudited amount
[[Page 44659]]
reported for Fiscal Year 2024. Southeastern reduced the rates from what
was proposed based on the resulting lower annual revenue requirement.
Discussion
System Repayment
An updated revised repayment study reflecting corrected pension and
post-retirement benefit expense projections, using initial proposed
rates, indicated an over-recovery of revenue. The amended revised
repayment study indicates an approximate 8.56% reduction in the annual
revenue requirement compared to the originally proposed annual revenue
requirement. An amended revised annual revenue requirement of
$74,750,000 will meet cost recovery and repayment criteria.
The amended revised rates are as follows:
Cumberland System Rates
Original Marketing Policy
Inside TVA Preference Customers
Capacity and Base Energy: $4.078 per kW/Month.
Additional Energy: 15.541 mills per kWh.
Transmission: Pass-through.
Outside TVA Preference Customers (Excluding Customers Served Through
Duke Energy Progress or East Kentucky Power Cooperative)
Capacity and Base Energy: $4.078 per kW/Month.
Additional Energy: 15.541 mills per kWh.
Transmission: Monthly TVA Transmission Charge divided by
545,000.
Customers Served Through Duke Energy Progress
Capacity and Base Energy: $4.617 per kW/Month.
TVA Transmission: TVA rate at border as computed above, adjusted
for DEP delivery.
East Kentucky Power Cooperative
Capacity: $2.135 per kW/Month.
Energy: 15.541 mills per kWh.
Transmission: Monthly TVA Transmission Charge divided by
545,000.
An examination of Southeastern's amended revised power repayment
study, for the Cumberland System shows that with the amended revised
rates, all system power costs are paid within the appropriate repayment
period and meet the cost recovery criteria required by existing law and
DOE Order RA 6120.2. The Administrator, Southeastern Power
Administration, has certified that the rates are consistent with
applicable law and that they are the lowest possible rates to customers
consistent with sound business principles.
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 Southeastern'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 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-SEPA-2023, effective April 10, 2023,
the Under Secretary for Infrastructure redelegated the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Administrator, Southeastern Power Administration.
Environmental Compliance
Southeastern has determined that this action fits within the
following categorical exclusion listed in appendix B of 10 CFR part
1021 and Appendix B of DOE's NEPA implementing procedures published on
June 30, 2025: 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 Southeastern's website at <a href="https://bit.ly/CumberlandCategoricalExclusion">https://bit.ly/CumberlandCategoricalExclusion</a>.
Determination Under Executive Order 12866
Southeastern 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.
Availability of Information
Information regarding these rates, including studies, and other
supporting materials, is available for public review in the offices of
Southeastern Power Administration, 1166 Athens Tech Road, Elberton,
Georgia 30635-6711.
Order
In view of the foregoing and pursuant to the authority redelegated
to me by the Under Secretary for Infrastructure, I hereby confirm and
approve on an interim basis, effective October 1, 2025, attached
Wholesale Power Rate Schedules CBR-1-K, CSI-1-K, CEK-1-K, CM-1-K, CC-1-
L, CK-1-K, CTV-1-K, CTVI-1-D, and Replacement-3. The rate schedules
shall remain in effect on an interim basis through September 30, 2030,
unless such period is extended or until FERC confirms and approves them
or substitute rate schedules on a final basis.
Signing Authority
This document of the Department of Energy was signed on September
11, 2025, by Virgil G. Hobbs III, Administrator for Southeastern 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 September 12, 2025.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
Wholesale Power Rate Schedule CBR-1-K
Availability: This rate schedule shall be available to Big Rivers
Electric Corporation and the City of Henderson, Kentucky (hereinafter
called the Customer).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereinafter called
collectively the ``Cumberland Projects'') and sold in wholesale
quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of 60 hertz. The power shall be delivered at nominal voltages
of 13,800 volts and 161,000 volts to the transmission system of Big
Rivers Electric Corporation.
Points of Delivery: Capacity and energy delivered to the Customer
will be delivered at points of interconnection of the Customer at the
Barkley Project Switchyard, at a delivery point in the vicinity of the
Paradise steam plant and at such other points of delivery as may
hereafter be agreed upon by the
[[Page 44660]]
Government and Tennessee Valley Authority (TVA).
Billing Month: The billing month for power sold under this schedule
shall end at 2,400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Conditions of Service: The Customer shall at its own expense
provide, install, and maintain on its side of each delivery point the
equipment necessary to protect and control its own system. In so doing,
the installation, adjustment, and setting of all such control and
protective equipment at or near the point of delivery shall be
coordinated with that which is installed by and at the expense of TVA
on its side of the delivery point.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand Charge (includes 1,500 hours of energy
annually): $4.078 per kilowatt/month of total contract demand.
Initial Base Energy Charge: None.
Initial Base Additional Energy Charge: 15.541 mills per kilowatt-
hour.
True-up Adjustment: The base demand charge and base additional
energy charge will be subject to annual adjustment on April 1 of each
year based on transfers to specific power plant-in-service. The
adjustment is for each increase of $1,000,000 to specific power plant-
in-service, an increase of $0.003 per kilowatt per month added to the
base Capacity rate and an increase of 0.013 mills per kilowatt-hour
added to the additional energy rate.
Southeastern will give written notice to the Customer of the amount
of the true-up by February 1 of each year.
Transmission Charge: Monthly TVA Transmission Charge divided by
545,000.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the Customer from the Projects through
the Customer's interconnections with TVA and the Customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly, such that the maximum amount
scheduled in any month shall not exceed 240 hours per kilowatt of the
Customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the customer's
contract demand. The Customer may request and the Government may
approve energy scheduled for a month greater than 240 hours per
kilowatt of the Customer's contract demand; provided, that the combined
schedule of all Southeastern customers outside TVA and served by TVA
does not exceed 240 hours per kilowatt of the total contract demands of
these customers.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN16SE25.005
Wholesale Power Rate Schedule CSI-1-K
Availability: This rate schedule shall be available to Southern
Illinois Power Cooperative (hereinafter the Customer).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereinafter called
collectively the ``Cumberland Projects'') and sold in wholesale
quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of 60 hertz. The power shall be delivered at nominal voltages
of 13,800 volts and 161,000 volts to the transmission system of Big
Rivers Electric Corporation.
Points of Delivery: Capacity and energy delivered to the Customer
will be delivered at points of interconnection of the Customer at the
Barkley Project Switchyard, at a delivery point in the vicinity of the
Paradise steam plant and at such other points of delivery as may
hereafter be agreed upon by the Government and Tennessee Valley
Authority (TVA).
Billing Month: The billing month for power sold under this schedule
shall end at 2,400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand Charge (includes 1,500 hours of energy
annually): $4.078 per kilowatt/month of total contract demand.
Initial Base Energy Charge: None.
Initial Base Additional Energy Charge: 15.541 mills per kilowatt-
hour.
True-up Adjustment: The base demand charge and base additional
energy charge will be subject to annual adjustment on April 1 of each
year based on transfers to specific power plant-in-service. The
adjustment is for each increase of $1,000,000 to specific power plant-
in-service, an increase of $0.003 per kilowatt per month added to the
base Capacity rate and an increase of 0.013 mills per kilowatt-hour
added to the additional energy rate.
Southeastern will give written notice to the Customer of the amount
of the true-up by February 1 of each year.
Transmission Charge: Monthly TVA Transmission Charge divided by
545,000.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the Customer from the Projects through
the Customer's interconnections with TVA and the Customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly, such that the maximum amount
scheduled in any month shall not exceed 240 hours per kilowatt of the
Customer's contract demand and the minimum amount
[[Page 44661]]
scheduled in any month shall not be less than 60 hours per kilowatt of
the customer's contract demand. The Customer may request and the
Government may approve energy scheduled for a month greater than 240
hours per kilowatt of the Customer's contract demand; provided, that
the combined schedule of all Southeastern customers outside TVA and
served by TVA does not exceed 240 hours per kilowatt of the total
contract demands of these customers.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN16SE25.000
Wholesale Power Rate Schedule CEK-1-K
Availability: This rate schedule shall be available to East
Kentucky Power Cooperative (hereinafter called the Customer).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereinafter called
collectively the ``Cumberland Projects'') and power available from the
Laurel Project and sold in wholesale quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of 60 hertz. The power shall be delivered at nominal voltages
of 161,000 volts to the transmission systems of the Customer.
Points of Delivery: The points of delivery will be the 161,000 volt
bus of the Wolf Creek Power Plant and the 161,000 volt bus of the
Laurel Project. Other points of delivery may be as agreed upon.
Billing Month: The billing month for power sold under this schedule
shall end at 2,400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Conditions of Service: The Customer shall at its own expense
provide, install, and maintain on its side of each delivery point the
equipment necessary to protect and control its own system. In so doing,
the installation, adjustment, and setting of all such control and
protective equipment at or near the point of delivery shall be
coordinated with that which is installed by and at the expense of the
Tennessee Valley Authority (TVA) on its side of the delivery point.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand charge: $2.135 per kilowatt/month of total
contract demand.
Initial Base Energy Charge: 15.541 mills per kilowatt-hour.
True-up Adjustment: The base demand charge and base energy charge
will be subject to annual adjustment on April 1 of each year based on
transfers to specific power plant-in-service. The adjustment is for
each increase of $1,000,000 to specific power plant-in-service an
increase of $0.003 per kilowatt per month added to the base Capacity
rate and an increase of 0.013 mills per kilowatt-hour added to the
energy rate.
Southeastern will give written notice to the Customer of the amount
of the true-up by February 1 of each year.
Transmission Charge: Monthly TVA Transmission Charge divided by
545,000.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the Customer from the Projects through
the Customer's interconnections with TVA and the Customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand plus 369 kilowatt-
hours of energy delivered for each kilowatt of contract demand to
supplement energy available at the Laurel Project. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly such that the maximum amount
scheduled in any month shall not exceed 240 hours per kilowatt of the
Customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the Customer's
contract demand. The Customer may request and the Government may
approve energy scheduled for a month greater than 240 hours per
kilowatt of the customer's contract demand; provided, that the combined
schedule of all Southeastern customers outside TVA and served by TVA
does not exceed 240 hours per kilowatt of the total contract demands of
these customers.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN16SE25.001
[[Page 44662]]
Wholesale Power Rate Schedule CM-1-K
Availability: This rate schedule shall be available to Cooperative
Energy (formerly the South Mississippi Electric Power Association),
Municipal Energy Agency of Mississippi, and Mississippi Delta Energy
Agency (hereinafter called the Customers).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereinafter called
collectively the ``Cumberland Projects'') and sold in wholesale
quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of 60 hertz. The power shall be delivered at nominal voltages
of 161,000 volts to the transmission systems of Mississippi Power and
Light.
Points of Delivery: The points of delivery will be at
interconnection points of the Tennessee Valley Authority (TVA) system
and the Mississippi Power and Light system. Other points of delivery
may be as agreed upon.
Billing Month: The billing month for power sold under this schedule
shall end at 2,400 hours CDT or CST, whichever is currently effective
on the last day of each calendar month.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand charge (includes 1,500 hours of energy
annually): $4.078 per kilowatt/month of total contract demand.
Initial Base Energy Charge: None.
Initial Base Additional Energy Charge: 15.541 mills per kilowatt-
hour.
True-up Adjustment: The base demand charge and base additional
energy charge will be subject to annual adjustment on April 1 of each
year based on transfers to specific power plant-in-service. The
adjustment is for each increase of $1,000,000 to specific power plant-
in-service, an increase of $0.003 per kilowatt per month added to the
base Capacity rate and an increase of 0.013 mills per kilowatt-hour
added to the additional energy rate.
Southeastern will give written notice to the Customers of the
amount of the true-up by February 1 of each year.
Transmission Charge: Monthly TVA Transmission Charge divided by
545,000.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the Customer from the Projects through
the Customer's interconnections with TVA and the Customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly such that the maximum amount
scheduled in any month shall not exceed 240 hours per kilowatt of the
Customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the Customer's
contract demand. The Customer may request and the Government may
approve energy scheduled for a month greater than 240 hours per
kilowatt of the Customer's contract demand; provided, that the combined
schedule of all Southeastern customers outside TVA and served by TVA
does not exceed 240 hours per kilowatt of the total contract demands of
these customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1,500 kilowatt hours shall be
reduced \1/12 \for each month of that year prior to initial delivery of
such capacity.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN16SE25.002
Wholesale Power Rate Schedule CC-1-L
Availability: This rate schedule shall be available to public
bodies and cooperatives served through the facilities of Duke Energy
Progress (formerly known as Carolina Power & Light Company), Western
Division (hereinafter called the Customers).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereinafter called
collectively the ``Cumberland Projects'') and sold in wholesale
quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of 60 hertz. The power shall be delivered at nominal voltages
of 161,000 volts to the transmission system of Duke Energy Progress,
Western Division.
Points of Delivery: The points of delivery will be at
interconnecting points of the Tennessee Valley Authority (TVA) system
and the Duke Energy Progress, Western Division system. Other points of
delivery may be as agreed upon.
Billing Month: The billing month for power sold under this schedule
shall end at 2,400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand charge (includes 1,500 hours of energy annually
at the TVA Border): $4.617 per kilowatt/month of total contract demand.
Initial Base Energy Charge: None.
Initial Base Additional Energy Charge: 15.541 mills per kilowatt-
hour.
True-up Adjustment: The base demand charge and base additional
energy charge will be subject to annual adjustment on April 1 of each
year based on transfers to specific power plant-in-service. The
adjustment is for each increase of $1,000,000 to specific
[[Page 44663]]
power plant-in-service, an increase of $0.003 per kilowatt per month
added to the base Capacity rate and an increase of 0.013 mills per
kilowatt-hour added to the additional energy rate.
Southeastern will give written notice to the Customers of the
amount of the true-up by February 1 of each year.
Transmission Charge: Monthly TVA Transmission Charge divided by
545,000, and adjusted for Duke Energy Progress delivery. The adjustment
under the current contract is 12,000/10,600.
Energy to be Furnished by the Government: The Government will sell
to the Customers and the Customers will purchase from the Government
energy each billing month equivalent to a percentage specified by
contract of the energy made available to Duke Energy Progress (less
applicable losses). The Customer's contract demand and accompanying
energy allocation will be divided pro rata among its individual
delivery points served from the Duke Energy Progress, Western Division
transmission system.
Wholesale Power Rate Schedule CK-1-K
Availability: This rate schedule shall be available to public
bodies served through the facilities of Kentucky Utilities Company,
(hereinafter called the Customers).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereinafter called
collectively the ``Cumberland Projects'') and sold in wholesale
quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of 60 hertz. The power shall be delivered at nominal voltages
of 161,000 volts to the transmission systems of Kentucky Utilities
Company.
Points of Delivery: The points of delivery will be at
interconnecting points between the Tennessee Valley Authority (TVA)
system and the Kentucky Utilities Company system. Other points of
delivery may be as agreed upon.
Billing Month: The billing month for power sold under this schedule
shall end at 2,400 hours CDT or CST, whichever is currently effective
on the last day of each calendar month.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand charge (includes 1,500 hours of energy
annually): $4.078 per kilowatt/month of total contract demand.
Initial Base Energy Charge: None.
Initial Base Additional Energy Charge: 15.541 mills per kilowatt-
hour.
True-up Adjustment: The base demand charge and base additional
energy charge will be subject to annual adjustment on April 1 of each
year based on transfers to specific power plant-in-service. The
adjustment is for each increase of $1,000,000 to specific power plant-
in-service, an increase of $0.003 per kilowatt per month added to the
base Capacity rate and an increase of 0.013 mills per kilowatt-hour
added to the additional energy rate.
Southeastern will give written notice to the Customers of the
amount of the true-up by February 1 of each year.
Transmission Charge: Monthly TVA Transmission Charge divided by
545,000.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the Customer from the Projects and the
Customer will accept an allocation of 1,500 kilowatt-hours of energy
for each kilowatt of contract demand. A contract year is defined as the
12 months beginning July 1 and ending at midnight June 30 of the
following calendar year. The energy made available for a contract year
shall be scheduled monthly such that the maximum amount scheduled in
any month shall not exceed 240 hours per kilowatt of the Customer's
contract demand and the minimum amount scheduled in any month shall not
be less than 60 hours per kilowatt of the Customer's contract demand.
The Customers may request and the Government may approve energy
scheduled for a month greater than 240 hours per kilowatt of the
Customer's contract demand; provided, that the combined schedule of all
Southeastern customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1,500 kilowatt hours shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
For billing purposes, each kilowatt of capacity will include 1,500
kilowatt-hours of energy per year. Customers will pay for additional
energy at the additional energy rate.
Wholesale Power Rate Schedule CTV-1-K
Availability: This rate schedule shall be available to the
Tennessee Valley Authority (hereinafter called TVA) on behalf of
members of the Tennessee Valley Public Power Association (hereinafter
called TVPPA).
Applicability: This rate schedule shall be applicable to electric
capacity and energy generated at the Dale Hollow, Center Hill, Wolf
Creek, Old Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereafter called collectively
the ``Cumberland Projects'') and the Laurel Project sold under
agreement between the Department of Energy and TVA.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a frequency of
approximately 60 hertz at the outgoing terminals of the Cumberland
Projects' switchyards.
Billing Month: The billing month for capacity and energy sold under
this schedule shall end at 2,400 hours CDT or CST, whichever is
currently effective, on the last day of each calendar month.
Contract Year: For purposes of this rate schedule, a contract year
shall be as in Section 13.1 of the Southeastern Power Administration--
Tennessee Valley Authority Contract.
Power Factor: TVA shall take capacity and energy from the
Department of Energy at such power factor as will best serve TVA's
system from time to time; provided, that TVA shall not impose a power
factor of less than .85 lagging on the Department of Energy's
facilities which requires operation contrary to good operating practice
or results in overload or impairment of such facilities.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand charge (includes 1,500 hours of energy
annually): $4.078 per kilowatt/month of total contract demand.
Initial Base Energy Charge: None.
Initial Base Additional Energy Charge: 15.541 mills per kilowatt-
hour.
True-up Adjustment: The base demand charge and base additional
energy charge will be subject to annual adjustment on April 1 of each
year based on transfers to specific power plant-in-service. The
adjustment is for each increase of $1,000,000 to specific power plant-
in-service, an increase of $0.003 per kilowatt per month added to the
base Capacity rate and an increase of 0.013 mills per kilowatt-hour
added to the additional energy rate.
Southeastern will give written notice to the TVA and TVPPA of the
amount of the true-up by February 1 of each year.
[[Page 44664]]
Energy to be Made Available: The Department of Energy shall
determine the energy that is available from the projects for
declaration in the billing month.
[GRAPHIC] [TIFF OMITTED] TN16SE25.003
To meet the energy requirements of the Department of Energy's
customers outside the TVA area (hereinafter called Outside Customers),
768,000 megawatt-hours of net energy shall be available annually
(including 36,900 megawatt-hours of annual net energy to supplement
energy available at Laurel Project). The energy requirement of the
Outside Customers shall be available annually, divided monthly such
that the maximum available in any month shall not exceed 240 hours per
kilowatt of total Outside Customers contract demand, and the minimum
amount available in any month shall not be less than 60 hours per
kilowatt of total Outside Customers demand.
In the event that any portion of the capacity allocated to Outside
Customers is not initially delivered to the Outside Customers as of the
beginning of a full contract year (July through June), the 1,500 hours,
plus any such additional energy required as discussed above, shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
The energy scheduled by TVA for use within the TVA System in any
billing month shall be the total energy delivered to TVA less (1) an
adjustment for fast or slow meters, if any, (2) an adjustment for
Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month
which is delivered to TVA under the agreement from the Cumberland
Projects without charge to TVA, (3) the energy scheduled by the
Department of Energy in said month for the Outside Customers plus
losses of two percent [2%], and (4) station service energy furnished by
TVA.
Each kilowatt of capacity will include 1,500 kilowatt-hours of
energy per year, which is defined as base energy. Energy received in
excess of 1,500 kilowatt-hours per kilowatt will be subject to an
additional energy charge identified in the monthly rates section of
this rate schedule.
Service Interruption: When delivery of capacity to TVA is
interrupted or reduced due to conditions on the Department of Energy's
system that are beyond its control, the Department of Energy will
continue to make available the portion of its declaration of energy
that can be generated with the capacity available.
For such interruption or reduction (exclusive of any restrictions
provided in the agreement) due to conditions on the Department of
Energy's system which have not been arranged for and agreed to in
advance, the demand charge for scheduled capacity made available to TVA
will be reduced as to the kilowatts of such scheduled capacity which
have been so interrupted or reduced for each day in accordance with the
following formula:
Wholesale Power Rate Schedule CTVI-1-D
Availability: This rate schedule shall be available to customers
(hereinafter called the Customer) who are or were formerly in the
Tennessee Valley Authority (hereinafter called TVA) service area.
Applicability: This rate schedule shall be applicable to electric
capacity and energy generated at the Dale Hollow, Center Hill, Wolf
Creek, Old Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereafter called collectively
the ``Cumberland Projects'') and the Laurel Project sold under
agreement between the Department of Energy and the Customer.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a frequency of
approximately 60 hertz at the outgoing terminals of the Cumberland
Projects' switchyards.
Billing Month: The billing month for capacity and energy sold under
this schedule shall end at 2,400 hours CDT or CST, whichever is
currently effective, on the last day of each calendar month.
Contract Year: For purposes of this rate schedule, a contract year
shall be as in Section 13.1 of the Southeastern Power Administration--
Tennessee Valley Authority Contract.
Monthly Rate: The initial monthly base rate for capacity and energy
sold under this rate schedule shall be:
Initial Base Demand charge (includes 1,500 hours of energy
annually): $4.078 per kilowatt/month of total contract demand.
Initial Base Energy Charge: None.
Initial Base Additional Energy Charge: 15.541 mills per kilowatt-
hour.
True-up Adjustment: The base demand charge and base additional
energy charge will be subject to annual adjustment on April 1 of each
year based on transfers to specific power plant-in-service. The
adjustment is for each increase of $1,000,000 to specific power plant-
in-service, an increase of $0.003 per kilowatt per month added to the
base Capacity rate and an increase of 0.013 mills per kilowatt-hour
added to the additional energy rate.
Southeastern will give written notice to the Customer of the amount
of the true-up by February 1 of each year.
Transmission Charge: The initial charge for transmission and
Ancillary Services will be the Customer's ratable share of the charges
for transmission, distribution, and ancillary services paid by the
Government. The charges for transmission and ancillary services are
governed by and subject to refund based upon the determination in
proceedings before FERC or other overseeing entity involving the TVA's
and other transmission provider's Open Access Transmission Tariff
(OATT).
Proceedings before FERC or other overseeing entity involving the
OATT or the Distribution charge may result in the separation of charges
currently included in the transmission rate. In this event, the
Government may charge the Customer for any and all separate
transmission, ancillary services, and distribution charges paid by the
Government in behalf of the Customer. These charges could be recovered
through a capacity charge or an energy charge, as determined by the
Government.
[[Page 44665]]
[GRAPHIC] [TIFF OMITTED] TN16SE25.004
Energy to be Made Available: The energy will be scheduled by TVA
and the Customer will receive their ratable share, in accordance with
the Government-Customer Contract. Energy shall be accounted for, in
accordance with agreements with TVA.
The Customer will receive a ratable share of their capacity, in
accordance with the Government-Customer Contract.
Service Interruption: When delivery of capacity to TVA is
interrupted or reduced due to conditions on the Department of Energy's
system that are beyond its control, the Department of Energy will
continue to make available the portion of its declaration of energy
that can be generated with the capacity available. The customer will
receive a ratable share of this capacity.
For such interruption or reduction (exclusive of any restrictions
provided in the agreement) due to conditions on the Department of
Energy's system which have not been arranged for and agreed to in
advance, the demand charge for scheduled capacity made available to the
Customer will be reduced as to the kilowatts of such scheduled capacity
which have been so interrupted or reduced for each day in accordance
with the following formula:
Wholesale Rate Schedule Replacement-3
Availability: This rate schedule shall be available to public
bodies and cooperatives (any one of whom is hereinafter called the
Customer) in Alabama, Georgia, Illinois, Kentucky, North Carolina,
Mississippi, Tennessee and Virginia to whom power is provided pursuant
to contracts between the Government and the customer from the Dale
Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J.
Percy Priest, Cordell Hull, and Laurel Projects (all of such projects
being hereinafter called collectively the ``Cumberland Projects'').
Applicability: This rate schedule shall be applicable to the sale
of wholesale energy purchased to meet contract minimum energy sold
under appropriate contracts between the Government and the Customer.
Character of Service: The energy supplied hereunder will be
delivered at the delivery points provided for under appropriate
contracts between the Government and the Customer.
Monthly Charge: The rate for replacement energy will be a formulary
capacity charge based on the monthly cost to the Government to purchase
replacement energy necessary to support capacity in the Cumberland
System divided by the capacity available from the Cumberland System,
which is 950,000 kilowatts in the published power marketing policy. The
capacity rate will be adjusted for any capacity retained by the
Customer's transmission facilitator.
Conditions of Service: The customer shall at its own expense
provide, install, and maintain on its side of each delivery point the
equipment necessary to protect and control its own system.
[FR Doc. 2025-17843 Filed 9-15-25; 8:45 am]
BILLING CODE 6450-01-P
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</html>Indexed from Federal Register on September 16, 2025.
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.