Notice2025-20296
Boulder Canyon Project
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
November 19, 2025
Effective
October 1, 2025
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The Deputy Secretary confirms, approves, and places into effect on a final basis the Western Area Power Administration (WAPA) Desert Southwest Region's (DSW) fiscal year (FY) 2026 base charge and rates for Boulder Canyon Project (BCP) electric service under Rate Schedule BCP-F11. The base charge is increasing 2.5 percent, from $74.3 million in FY 2025 to $76.2 million in FY 2026. This change is primarily due to a decrease in anticipated prior year carryover funds from FY 2025.
Full Text
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<title>Federal Register, Volume 90 Issue 221 (Wednesday, November 19, 2025)</title>
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[Federal Register Volume 90, Number 221 (Wednesday, November 19, 2025)]
[Notices]
[Pages 52051-52054]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20296]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice concerning fiscal year 2026 base charge and rates for
electric service.
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SUMMARY: The Deputy Secretary confirms, approves, and places into
effect on a final basis the Western Area Power Administration (WAPA)
Desert Southwest Region's (DSW) fiscal year (FY) 2026 base charge and
rates for Boulder Canyon Project (BCP) electric service under Rate
Schedule BCP-F11. The base charge is increasing 2.5 percent, from $74.3
million in FY 2025 to $76.2 million in FY 2026. This change is
primarily due to a decrease in anticipated prior year carryover funds
from FY 2025.
DATES: The FY 2026 base charge and rates are effective October 1, 2025,
and will remain in effect through September 30, 2026.
FOR FURTHER INFORMATION CONTACT: Scott R. Lund, Regional Manager,
Desert Southwest Region, Western Area Power Administration, P.O. Box
6457, Phoenix, AZ 85005-6457, or Tina Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power Administration, (602) 812-2355, or
email: <a href="/cdn-cgi/l/email-protection#a5c1d6d2d5d2d7c8d7cee5d2c4d5c48bc2cad3"><span class="__cf_email__" data-cfemail="422631353235302f302902352332236c252d34">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On March 31, 2023, the Federal Energy
Regulatory Commission (FERC) approved and confirmed Rate Schedule BCP-
F11, under Rate Order No. WAPA-204, on a final basis through September
30, 2027.\1\
[[Page 52052]]
WAPA published a Federal Register notice (FRN) on April 28, 2025 (90 FR
17591), proposing the FY 2026 base charge and rates under Rate Schedule
BCP-F11. The FRN also initiated a 90-day public consultation and
comment period and set forth the date and location of the public
information and public comment forums.
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\1\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF22-4-000 (2023).
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The rate-setting methodology for BCP electric service requires
calculation of an annual base charge rather than a unit rate for Hoover
Dam hydropower. The base charge recovers an annual revenue requirement
that includes projected costs of investment repayment, interest,
operations, maintenance, replacements, payments to states, and Hoover
Dam visitor services. Non-power revenue projections such as water
sales, Hoover Dam visitor revenue, ancillary services, and late fees
offset these projected costs. Hoover power contractors are billed a
percentage of the base charge in proportion to their power allocation.
Unit rates are calculated for comparative purposes but are not used to
determine the charges for electric service.
Rate Schedule BCP-F11 and the BCP Electric Service Contract require
WAPA to calculate the annual base charge and rates for the next fiscal
year before October 1 of each year. The FY 2025 BCP base charge and
rates expire on September 30, 2025.
Comparison of Base Charge and Rates
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FY 2025 FY 2026 Amount change Percent change
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Base Charge ($)................................. 74,334,285 76,174,568 1,840,283 2.5
Composite Rate (mills/kWh)...................... 24.39 25.89 1.50 6.2
Energy Rate (mills/kWh)......................... 12.20 12.95 0.75 6.1
Capacity Rate ($/kW-Mo)......................... 2.17 2.27 0.10 4.6
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The base charge for BCP electric service is increasing from $74.3
million in FY 2025 to $76.2 million in FY 2026.
Comparison of Base Charge Inputs
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Change (FY
FY 2025 FY 2026 FY 2026 2025 to FY Percent change
proposed FRN 2026)
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Reclamation Budget ($).......... 87,237,463 88,803,044 86,339,548 (897,915) (1.0)
WAPA Budget ($)................. 10,136,615 10,136,615 9,090,506 (1,046,109) (10.3)
Non-Power Revenue ($)........... 18,907,029 18,826,056 18,826,056 (80,973) (0.4)
Carryover ($)................... 4,132,764 (70,570) 429,430 (3,703,334) (89.6)
Base Charge ($) \2\............. 74,334,285 80,184,173 76,174,568 1,840,283 2.5
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The Bureau of Reclamation's (Reclamation) FY 2026 budget reflects
reductions, decreasing by $898,000 from $87.2 million to $86.3 million,
a 1 percent decrease from FY 2025. After publication of the FRN and a
comprehensive review of operations and maintenance (O&M) expenditures,
Reclamation's initial FY 2026 projected increase of $3.1 million in O&M
costs was reduced by $2.3 million to an increase of $898,000. The
increase is primarily due to higher projected labor costs for salaries,
benefits, and overhead, as well as increased costs for services,
materials and supplies, and equipment due to rising purchase needs and
inflation. In addition, visitor services costs are increasing by
$772,000 also due to higher projected labor costs for salaries,
benefits, overhead, and overtime. These increases, totaling $1.6
million, were offset by a $2.5 million reduction in replacement costs
due to several large projects being delayed.
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\2\ Base Charge = Reclamation Budget + WAPA Budget-Non-Power
Revenue-Carryover.
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WAPA made reductions to both its FY 2025 and FY 2026 budgets
totaling $1.5 million over both fiscal years. WAPA's FY 2025 O&M budget
was reduced by $500,000 impacting the carryover from FY 2025 to FY
2026. WAPA's FY 2026 budget is decreasing $1 million from $10.1 million
to $9.1 million, a 10 percent decrease from FY 2025. These adjustments
were made after publication of the FRN, stemming from strategic cost-
containment initiatives and a comprehensive review of expenditures.
Non-power revenue projections for Reclamation and WAPA are
decreasing $81,000 to $18.3 million, due to lower estimated revenue
from ancillary services.
The projected FY 2025 to FY 2026 carryover is $429,000. While
carryover was originally projected to be a shortfall in the FRN, the
updated figure is a result of WAPA's previously mentioned cuts to their
FY 2025 O&M budget. This amount represents a $3.7 million decrease from
the FY 2025 projected carryover. This decrease occurred due to higher
than anticipated execution rates in FY 2024 and the application of
previously collected multi-year project funds to ongoing and upcoming
work.
The composite rate is increasing 6.2 percent, the energy rate is
increasing 6.1 percent, and the capacity rate is increasing 4.6 percent
from FY 2025. These unit rate calculations use forecasted energy and
capacity values which decreased by 3.5 percent and 2.3 percent,
respectively, when compared to FY 2025.
Public Notice and Comment
DSW followed the Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions (10 CFR part 903) and
General Regulations for the Charges for the Sale of Power from the BCP
(10 CFR part 904). DSW took the following steps to involve interested
parties in the rate process:
1. DSW provided a website where information is posted about this
rate process. The website is located at <a href="http://www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates">www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates</a>.
[[Page 52053]]
2. On April 28, 2025, a Federal Register notice (90 FR 17591) (FRN)
announced the proposed FY 2026 base charge and rates and initiated a
90-day public consultation and comment period.
3. On April 28, 2025, DSW notified contractors and interested
parties of the proposed rates and provided a copy of the published FRN
by email.
4. On May 28, 2025, DSW held a public information forum, with
options to attend virtually or in person, at the Desert Southwest
Regional Office, Phoenix, Arizona. DSW representatives explained the
proposed base charge and provided contractors and interested parties an
opportunity to ask questions and provide comments for the record.
5. On June 25, 2025, DSW posted on its website responses to
questions asked at the public information forum. These questions
focused on the increase in Reclamation's maintenance budget and the
projected monthly billing for the BCP base charge for FY 2026.
6. On June 27, 2025, DSW held a public comment forum, with options
to attend virtually or in person, at the Desert Southwest Regional
Office, Phoenix, Arizona, to provide an opportunity for contractors and
other interested parties to provide comments for the record.
7. On July 28, 2025, the public consultation and comment period
ended with DSW receiving one oral comment and several questions at the
public information forum (see #5 previously listed) and written
comments from Arizona Power Authority, Irrigation & Electrical
Districts Association of Arizona and Colorado River Commission of
Nevada.
8. The comments appear below, paraphrased where appropriate without
compromising the meaning.
Oral comments were received from the following organization:
Arizona Power Authority
Written comments were received from the following organizations:
Arizona Power Authority
Colorado River Commission of Nevada
Irrigation and Electrical Districts Association of Arizona
Comments
Comment: At the public information forum, a commenter expressed
concerns regarding the increase in personnel costs for Hoover Dam
Visitor Services, as well as overall rising personnel expenses. The
commenter recommended exploring cost-control measures, particularly
given the subsidies allocated to Visitor Services.
Response: Reclamation acknowledges the commenter's concern
regarding rising personnel costs, particularly the increases affecting
Hoover Dam Visitor Services. Reclamation will continue to evaluate and
discuss potential cost-control measures at the Visitor Services Ad Hoc
Committee meetings.
Comment: A commenter requested Reclamation seek methods to reduce
operation costs in future base charge adjustments.
Response: Reclamation acknowledges the commenter's concerns and
maintains an ongoing commitment to managing expenditures efficiently
and reducing operational costs.
Comment: Commenters requested WAPA to cease collecting post-
retirement benefits (PRBs) in the BCP rates to prevent further
accumulation of funds, or to change its practice and defer collection
until a resolution is reached by legislation for the use of these
funds.
Response: Reclamation and WAPA acknowledge the commenters' concerns
and recommendations regarding PRBs and will collaboratively work with
Hoover Contractors to explore potential solutions that comport with
contractual and legal requirements related to the collection and use of
these funds.
Comment: A commenter requested WAPA, Reclamation and the Hoover
Contractors to convene a workgroup to identify an administrative
solution for utilizing stranded PRB funds on necessary maintenance and
replacements at Hoover Dam.
Response: Reclamation and WAPA acknowledge the request to convene a
workgroup, including Hoover Contractors, to identify administrative
solutions for applying PRB funds toward essential maintenance and
replacements at Hoover Dam. This requested collaborative approach will
be considered as part of our continuous work toward developing and
pursuing a comprehensive resolution for PRBs.
Comment: A commenter thanked WAPA for its cost-containment efforts
and noted the increase in the FY 2026 base charge was not the result of
an increase in WAPA's costs.
Response: WAPA appreciates the comment and is committed to
developing budgets that will accomplish necessary work while ensuring
the base charge and rates are the lowest cost possible consistent with
sound business principles.
Certification of Rates
WAPA's Administrator certified the FY 2026 base charge and rates
under Rate Schedule BCP-F11 are the lowest possible rates consistent
with sound business principles. The base charge and rates were
developed following administrative policies and applicable laws.
Availability of Information
Information used by WAPA to develop the base charge and rates for
electric service is available for inspection and copying at the Desert
Southwest Regional Office, located at 615 South 43rd Avenue, Phoenix,
Arizona 85009. Many of these documents are also available on DSW's
website at <a href="http://www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates">www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates</a>.
Legal Authority
DOE is setting rates for BCP electric service in accordance with
section 302 of the DOE Organization Act (42 U.S.C. 7152). This
provision transferred to, and vested in, the Secretary of Energy
certain functions of the Secretary of the Interior, along with the
power marketing functions of Reclamation.
DOE regulations governing charges for the sale of BCP power, 10 CFR
904.7(e), require annual review of the BCP base charge and an
``adjust[ment], either upward or downward, when necessary and
administratively feasible, to assure sufficient revenues to effect
payment of all costs and financial obligations associated with the
[p]roject.'' WAPA's Administrator provided all BCP contractors an
opportunity to comment on the proposed base charge adjustment,
consistent with DOE procedures for public participation in rate
adjustments. The BCP Electric Service Contract states that for years
other than the first year and each fifth year thereafter, when the rate
schedule is approved by the Deputy Secretary of Energy on a provisional
basis and by FERC on a final basis, adjustments to the base charge
``shall become effective upon approval by the Deputy Secretary of
Energy.'' Accordingly, the Deputy Secretary of Energy may approve the
FY 2026 base charge and rates for BCP electric service, as authorized
by the BCP Electric Service Contract and DOE's procedures for public
participation in rate adjustments set forth at 10 CFR parts 903 and
904.\3\
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\3\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Following DOE's review of WAPA's proposal, and as authorized by
applicable provisions of the BCP Electric Service Contract, I have
confirmed, approved, and placed the FY 2026 base charge and rates for
BCP electric service, under Rate Schedule BCP-F11, into effect on a
final basis through September 30, 2026.
[[Page 52054]]
Ratemaking Procedure Requirements
Environmental Compliance
WAPA has determined that this action fits within the following
categorical exclusion listed in appendix B to 10 CFR part 1021 and
appendix B of DOE's National Environmental Policy Act (NEPA)
Implementing Procedures published on June 30, 2025: B4.3 (Electric
power marketing rate changes). Under 10 CFR 1021.102, categorically
excluded projects and activities do not require preparation of either
an environmental impact statement or an environmental assessment.\4\ A
copy of the categorical exclusion determination titled Boulder Canyon
Project--Proposed Rate-Setting Formulas for Electric Service and Fiscal
Year 2023 Base Charge and Rates, Rate Order WAPA-204 (1-31-2022) is
available on WAPA's website at: <a href="http://www.wapa.gov/about-wapa/regions/dsw/environment/dsw-cx">www.wapa.gov/about-wapa/regions/dsw/environment/dsw-cx</a>.
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\4\ The determination was done in compliance with the National
Environmental Policy Act (NEPA) of 1969, as amended, 42 U.S.C. 4321
et seq., and DOE NEPA Implementing Procedures, including 10 CFR part
1021.
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Determination Under Executive Order 12866
WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Signing Authority
This document of the Department of Energy was signed on October 17,
2025, by James Danly, Deputy 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 November 17, 2025.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2025-20296 Filed 11-18-25; 8:45 am]
BILLING CODE 6450-01-P
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