Notice2026-12068
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
June 16, 2026
Issuing agencies
Energy DepartmentWestern Area Power Administration
Abstract
The Desert Southwest region (DSW) of the Western Area Power Administration (WAPA) proposes the fiscal year (FY) 2027 base charge and rates for Boulder Canyon Project (BCP) electric service under Rate Schedule BCP-F11 to remain at $76.2 million, unchanged from FY 2026. The proposed base charge and rates would go into effect on October 1, 2026, and remain in effect through September 30, 2027. Publication of this Federal Register notice will initiate the public process.
Full Text
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<title>Federal Register, Volume 91 Issue 115 (Tuesday, June 16, 2026)</title>
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[Federal Register Volume 91, Number 115 (Tuesday, June 16, 2026)]
[Notices]
[Pages 36136-36138]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-12068]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Boulder Canyon Project
AGENCY: Western Area Power Administration, Department of Energy (DOE).
ACTION: Notice of proposed fiscal year 2027 Boulder Canyon Project base
charge and rates for electric service.
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SUMMARY: The Desert Southwest region (DSW) of the Western Area Power
Administration (WAPA) proposes the fiscal year (FY) 2027 base charge
and rates for Boulder Canyon Project (BCP) electric service under Rate
Schedule BCP-F11 to remain at $76.2 million, unchanged from FY 2026.
The proposed base charge and rates would go into effect on October 1,
2026, and remain in effect through September 30, 2027. Publication of
this Federal Register notice will initiate the public process.
DATES: A consultation and comment period begins June 16, 2026 and will
end on September 14, 2026. DSW will present a detailed explanation of
the proposed FY 2027 base charge and rates at a public information
forum on July 16, 2026, from 10 a.m. Mountain Standard Time to no later
than 12 p.m. Mountain Standard Time. DSW will also host a public
comment forum on August 17, 2026, from 10 a.m. Mountain Standard Time
to no later than 12 p.m. Mountain Standard Time, or until the last
comment is received. The public information and public comment forums
will be held virtually and in person at WAPA's Desert Southwest
Regional Office located at 615 South 43rd Avenue, Phoenix, Arizona
85009. Instructions for participating in the forums will be posted on
DSW's BCP Rates website at least 14 days prior to the public
information and comment forums 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>. DSW will accept written comments at
any time during the consultation and comment period.
Individuals attending the public forums in person who are U.S.
citizens must present an official form of government-issued photo
identification (ID) at the time of the meeting. Acceptable forms of ID
include a REAL ID-compliant driver's license, U.S. passport, U.S.
Government ID, or U.S. Military ID. REAL ID-compliant driver's licenses
are marked with a star in the upper corner; attendees should verify
compliance in advance. Foreign nationals should contact Tina Ramsey,
Rates Manager, Desert Southwest Region, Western Area Power
Administration, (602)812-2355, or <a href="/cdn-cgi/l/email-protection#a5c1d6d2d5d2d7c8d7cee5d2c4d5c48bc2cad3"><span class="__cf_email__" data-cfemail="0e6a7d797e797c637c654e796f7e6f20696178">[email protected]</span></a> in advance of a
forum to obtain the necessary form for admittance to the Desert
Southwest Regional Office.
ADDRESSES: Written comments and requests to be informed of Federal
Energy Regulatory Commission (FERC) actions concerning the proposed
base charge and rates should be sent to: Scott R. Lund, Regional
Manager, Desert Southwest Region, Western Area Power Administration,
P.O. Box 6457, Phoenix, AZ 85005-6457, or <a href="/cdn-cgi/l/email-protection#096d7a7e797e7b647b62497e687968276e667f"><span class="__cf_email__" data-cfemail="472334303730352a352c073026372669202831">[email protected]</span></a>. DSW will
post information concerning the rate process and written comments
received to its BCP Rates 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>.
[[Page 36137]]
FOR FURTHER INFORMATION CONTACT: Tina Ramsey, Rates Manager, Desert
Southwest Region, Western Area Power Administration, (602) 812-2355, or
<a href="/cdn-cgi/l/email-protection#f490878384838699869fb483958495da939b82"><span class="__cf_email__" data-cfemail="1a7e696d6a6d687768715a6d7b6a7b347d756c">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Hoover Dam,\1\ authorized by the Boulder
Canyon Project Act of 1928, as amended (43 U.S.C. 617, et seq.), sits
on the Colorado River along the Arizona-Nevada border. The Hoover Dam
power plant has 19 generating units (including two for plant use) with
an installed capacity of 2,078.8 megawatts (4,800 kilowatts for plant
use). In collaboration with Reclamation, WAPA markets and delivers
hydropower from the Hoover Dam power plant through high-voltage
transmission lines and substations to customers in Arizona, Southern
California, and Southern Nevada.
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\1\ Hoover Dam was known as Boulder Dam from 1933 to 1947, but
was renamed Hoover Dam by an April 30, 1947, joint resolution of
Congress. See Act of April 30, 1947, H.J. Res. 140, ch. 46, 61 Stat.
56-57.
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The rate-setting methodology for BCP calculates an annual base
charge rather than a unit rate for Hoover Dam hydropower. Under the
Implementation Agreement, Section 8.5.5, Reclamation determines the
amount of project costs to be included in the annual base charge. The
base charge recovers an annual revenue requirement that includes
projected costs for 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 help offset
these projected costs. Hoover power customers 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 service.
On March 31, 2023, FERC approved and confirmed Rate Schedule BCP-
F11, under Rate Order No. WAPA-204, on a final basis through September
30, 2027.\2\ Rate Schedule BCP-F11 and the BCP Electric Service
Contract require WAPA to determine the annual base charge and rates for
the next fiscal year before October 1 of each year. The FY 2026 BCP
base charge and rates expire on September 30, 2026.
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\2\ Order Confirming and Approving Rate Schedule on a Final
Basis, FERC Docket No. EF22-4-000.
Comparison of Base Charge and Rates \3\
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FY 2026 FY 2027 Amount change Percent change
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Base Charge ($ in thousands).................... 76,175 76,175 0.00 0.0
Composite Rate (mills/kWh)...................... 25.89 25.89 0.00 0.0
Energy Rate (mills/kWh)......................... 12.95 12.95 0.00 0.0
Capacity Rate ($/kW-Mo)......................... 2.27 2.27 0.00 0.0
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\3\ Unit rate calculations use forecasted energy and capacity
values from FY 2026, which will be updated based on recent
hydrological conditions when determining the final base charge and
rates.
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The proposed FY 2027 base charge for BCP electric service is
projected to remain at $76.2 million, unchanged from FY 2026.
Comparison of Base Charge Inputs
(In thousands of dollars)
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Change (FY
FY 2026 FY 2027 TYOP FY 2027 2026 to FY Percent change
Proposed 2027 Proposed)
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Reclamation Budget.............. 86,339 89,846 89,096 2,757 3.2
WAPA Budget..................... 9,091 9,827 8,594 (497) (5.5)
Non-Power Revenue............... 18,826 18,773 18,773 (53) (0.3)
Carryover....................... 429 .............. 2,742 2,313 538.5
Base Charge \4\................. 76,175 .............. 76,175 .............. 0.0
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Reclamation and WAPA's FY 2027 budgets are established within the
Final FY 2027 Ten-Year Operating Plan (TYOP), which was reviewed and
coordinated with Hoover power customers. Following publication of the
Final FY 2027 TYOP, Reclamation and WAPA management conducted a
comprehensive review of recent expenditures, execution trends and
replacement project priorities.
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\4\ Base Charge = Reclamation Budget + WAPA Budget-Non-Power
Revenue-Carryover.
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As part of this review, Reclamation reduced its FY 2026 budget,
increasing projected carryover into FY 2027, and further reduced its FY
2027 operations and maintenance (O&M) and replacement budgets by
adjusting project schedules and deferring planned replacement
activities, resulting in a combined reduction of $2.6 million.
Reclamation's FY 2027 budget, after these reductions, is increasing
by $2.8 million, from $86.3 million to $89.1million, a 3.2 percent
increase over FY 2026. This increase includes a $1.7 million increase
in O&M, primarily driven by higher projected costs for salaries,
benefits, overhead, and overtime. Additionally, costs for services,
materials, and supplies have increased due to greater purchasing needs
and inflation. Although several large projects have been deferred, thus
reducing replacement costs by $478,000, work continues on many
projects, including the Unit Control Modernization Lifecycle
Replacement; Heating, Ventilation and Air Conditioning replacement and
renovations of the 7th and 8th floors; and the cylinder gate stem
replacement. Visitor services expenses are increasing $1.5 million,
primarily due to higher projected labor and support costs.
[[Page 36138]]
Similarly, WAPA reduced its FY 2026 budget, increasing projected
carryover into FY 2027, and reduced its FY 2027 O&M and replacement
budgets by deferring the Mead 69-kilovolt breaker and relay replacement
project to 2028 or later, resulting in a total reduction of $2.2
million.
WAPA's FY 2027 budget has been refined, decreasing $497,000 from
$9.1 million to $8.6 million, a 5.5 percent decrease from FY 2026. This
refinement reflects the consistent pattern over the past three fiscal
years, in which actual charges have been lower than prior projections.
Non-power revenue projections for Reclamation and WAPA are
forecasted to be $52,000 lower in FY 2027, due to reduced estimated
revenues from ancillary services. Carryover from FY 2026 to FY 2027 is
projected to be $2.7 million, which is $2.3 million more than the
projected carryover of $429,000 from FY 2025 into FY 2026. This
increase is primarily due to the previously mentioned reductions to the
FY 2026 budget.
The composite, energy, and capacity rates remain unchanged from FY
2026. These unit rate calculations use forecasted energy and capacity
values from FY 2026, which will be updated based on recent hydrological
conditions when determining the final base charge and rates.
WAPA's proposed base charge and rates for FY 2027, which would be
effective October 1, 2026, are preliminary and subject to change based
on modifications to forecasts before publication of the final base
charge and rates.
Legal Authority
WAPA is establishing 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. Those functions include
actions that specifically apply to the BCP.
WAPA's proposal to calculate the base charge and rates for FY 2027
constitutes a major rate adjustment, as defined by 10 CFR 903.2(d). In
accordance with 10 CFR 903.15, 10 CFR 903.16, and 10 CFR 904.7(e), DSW
will hold public information and public comment forums for this rate
adjustment. DSW will review and consider all timely public comments at
the conclusion of the consultation and comment period and adjust the
proposal as appropriate.
DOE regulations governing charges for the sale of BCP power, 10 CFR
904.7(e), requires an 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.'' This proposal is issued pursuant to Delegation Order No.
S1-DEL-RATES-2016, effective November 19, 2016, in which the Secretary
of Energy delegated the authority to develop power and transmission
rates to WAPA's Administrator. 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 would approve the final FY 2027 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.\5\ The FY 2027 base charge will also
be filed at FERC for informational purposes only.
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\5\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that DSW initiates or uses to develop the proposed formula
rates for electric service and the base charge and rates are available
for inspection and copying at the Desert Southwest Regional Office,
located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Many of these
documents and supporting information are also available on DSW's BCP
Rates 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>.
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.\6\
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\6\ In compliance with the National Environmental Policy Act
(NEPA) of 1969, as amended, 42 U.S.C. 4321-4347, DOE NEPA
regulations at 10 CFR part 1021, and DOE's NEPA implementing
procedures outside the Code of Federal Regulations available at
<a href="http://energy.gov/nepa">energy.gov/nepa</a>.
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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 June 11,
2026, 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 June 12, 2026.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2026-12068 Filed 6-15-26; 8:45 am]
BILLING CODE 6450-01-P
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