Notice2026-19342
Notice of Interim Approval of the Rate Schedule for Jim Woodruff Project
Primary source
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Published
September 22, 2026
Effective
October 1, 2026
Issuing agencies
Energy DepartmentSoutheastern Power Administration
Abstract
The Administrator for the Southeastern Power Administration (Southeastern or SEPA) has confirmed and approved, on an interim basis, rate schedule JW-1-M for the sale of power from the Jim Woodruff Project. The rate schedule is approved on an interim basis through September 30, 2031, and is 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 91 Issue 182 (Tuesday, September 22, 2026)</title>
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[Federal Register Volume 91, Number 182 (Tuesday, September 22, 2026)]
[Notices]
[Pages 60119-60122]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19342]
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DEPARTMENT OF ENERGY
Southeastern Power Administration
Notice of Interim Approval of the Rate Schedule for Jim Woodruff
Project
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of interim approval.
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SUMMARY: The Administrator for the Southeastern Power Administration
(Southeastern or SEPA) has confirmed and approved, on an interim basis,
rate schedule JW-1-M for the sale of power from the Jim Woodruff
Project. The rate schedule is approved on an interim basis through
September 30, 2031, and is 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 October 1,
2026.
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#f4b79586809186dab1909391b487918495da909b91da939b82"><span class="__cf_email__" data-cfemail="541735262031267a1130333114273124357a303b317a333b22">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: FERC, by Order issued February 10, 2022, in
Docket No. EF21-4-000, confirmed and approved on a final basis
Wholesale Power Rate Schedules JW-1-L and JW-2-F applicable to the Jim
Woodruff Project for a period ending September 30, 2026. On August 6,
2024, Southeastern submitted a notice of cancellation of the JW-2-F
Rate Schedule for the sale of power from
[[Page 60120]]
Southeastern's Jim Woodruff Project to Duke Energy Florida effective
October 6, 2024. There are no remaining obligations under the JW-2-F
Rate Schedule. (FERC Docket No. EF24-8-000 (Sep. 13, 2024)). This order
replaces the JW-1-L Rate Schedule with the JW-1-M Rate Schedule on an
interim basis, subject to confirmation and final approval by FERC.
Department of Energy
Administrator, Southeastern Power Administration
In the Matter of: Southeastern Power Administration, Jim Woodruff
Project Power Rates, Rate Order No. SEPA-69
Order Confirming and Approving Power Rates on an Interim Basis
Rate Order No. SEPA-69 and associated rate schedule are applicable
to Southeastern Power Administration (Southeastern) power sold to
existing customers in Florida. The rate schedule approved on an interim
basis, effective October 1, 2026, through September 30, 2031, and is
subject to confirmation and approval by the Federal Energy Regulatory
Commission (FERC) on a final basis.
Background
Power from the Jim Woodruff Project is currently sold under
Wholesale Power Rate Schedule JW-1-L. Rate Schedules JW-1-L and JW-2-F
were approved by the Federal Energy Regulatory Commission in Docket No.
EF21-4-000 on February 10, 2022. The JW-2-F Rate Schedule was cancelled
effective October 6, 2024. (FERC Docket No. EF24-8-000, (Sept. 13,
2024)). The cancellation followed updates to marketing arrangements
associated with the establishment of a new Power Marketing Policy for
the Jim Woodruff Project, as well as a mutual agreement between
Southeastern and Duke Energy Florida to terminate the Duke Energy
Florida contract effective April 20, 2024. The JW-1-L Rate Schedule
remains in effect and is scheduled to expire on September 30, 2026.
Public Notice and Comment
Notice of a proposed rate adjustment and opportunities for public
review and comment for the Jim Woodruff Project was published in the
Federal Register (91 FR 27938) on May 15, 2026. Southeastern proposed
an increase to the existing rate schedule and charges applicable to the
sale of power from the Jim Woodruff Project to become effective October
1, 2026, through September 30, 2031. The notice advised interested
parties of a public information forum to be held in-person at Florida
Electric Cooperatives Association in Tallahassee, FL with an option to
attend virtually via Microsoft Teams on June 4, 2026. The notice
further advised of a comment forum being held in-person at Southeastern
Power Administration with an option to attend virtually via Microsoft
Teams on July 7, 2026.
The annual generation revenue requirement proposed at the public
information forum was $8,662,652, an increase of about 6.7 percent. The
proposed rates reflected a 6.6 percent increase in the capacity charge
and 10.8 percent in energy charge. The rates proposed were $9.02 per
kilowatt per month for capacity and 24.72 mills per kilowatt-hour for
energy.
Following the presentation of the proposed Rate Schedule JW-1-M,
Southeastern completed an administrative review and determined
administrative revisions were necessary to conform with the Jim
Woodruff Power Marketing Policy finalized in 2023, purchase power
contracts executed in April 2024, and current operational billing
practices. Southeastern provided interested parties with a fair
opportunity to review the updated materials and submit written comments
by extending the comment period by 15 calendar days. The comment period
was scheduled to close on August 13, 2026; however, with the extension,
written comments were accepted through August 27, 2026.
Public Comments
Southeastern received oral comments from a participant as part of
the public information forum on June 4, 2026. The comments are
summarized below. Southeastern's responses are provided.
Oral Comment 1: In reviewing the materials, we note there is a
decrease in Corps revenues projected over the study period. Is there an
understanding as to why those revenues are decreasing in future years?
Response 1: The projected Corps Revenue amount of $32,348
represents the average revenue from the previous five fiscal years
(2021-2025). Revenues included in the total Corps Revenue consist of
revenue from timber sales, recreation leases at the project, soda
machines, maps, ice, payphones, and other miscellaneous items. A review
of past financial statements indicates the decline in revenue from
timber sales has been the primary factor contributing to the overall
decrease in actual and projected Corps Revenue.
Oral Comment 2: It appears from our review that there is an
accumulated deficit that occurred in 2024. Is there a reason for that
accumulated deficit?
Response 2: The deficit amount of $341,676 shown in FY 2024
resulted from insufficient revenue to cover annual expenses and
interest. Total Operating Revenue for FY 2024 was $8,028,116, while
Total Annual Expenses (including interest) totaled $8,369,793. No
investments were due in FY 2024; therefore, the deficit was not related
to an inability to meet the repayment schedule. In FY 2025, the study
reflected Net Revenue of $2,484,316. This amount was sufficient to
recover the FY 2024 deficit and contribute toward repayment
obligations.
Written Comment 3: After reviewing the proposed rate increase for
the Jim Woodruff Project, customers believe the range of the increase
is considered a reasonable reflection of rising costs since the last
rate modification, particularly the higher Operation and Maintenance
expenses attributed to the Corps and a modest increase in SEPA's
marketing costs. Deficits accumulated between 2021 and 2025 have been
repaid without being carried forward, which is an important feature of
the rate design, helping keep rates as low as possible.
Concerns remain regarding the Corps' classification of certain
environmental stewardship expenses as hydropower-related costs,
underscoring the need for careful evaluation of proper cost assignment
and categorization. SEPA's Administrator maintains independent
authority to determine which costs are included in hydropower rates,
consistent with congressional reaffirmation in WRDA 2024, and is
encouraged to exercise this discretion to ensure rates for 2026-2031
remain as low as possible while upholding sound business principles.
Response 3: Southeastern values the collaborative relationship
shared with the customers, and appreciates the thorough review of the
rate design, repayment structures, and cost recovery mechanisms. We
welcome our customers' acknowledgement of the proposed rate range
aligning with rising operational demands since the last rate adjustment
and their support for addressing historical deficits. Ensuring
repayment of deficits accumulated between FY 2021 and FY 2025 is
successfully repaid without being carried forward into the upcoming
rate cycle is a critical component of our financial obligation. This
proactive amortization directly aligns with Southeastern's commitment
to rate stability, preventing long-term interest burdens and helping to
keep future rates as low as possible.
[[Page 60121]]
Southeastern shares customers' concerns regarding the
classification of certain environmental stewardship expenses as
hydropower-related costs by the Corps. The Administrator of SEPA has
used his discretion as to setting rates for the sale of electric power
and energy pursuant to Section 5 of the Flood Control Act of 1944,
whether monies appropriated to the Corps are those monies Congress
deems to be repaid by hydropower customers within a prescribed time
period, to exclude certain Environmental Stewardship joint-to-power
projected expenses from the Jim Woodruff revenue requirement.
A total of $2,390,183.40 in projected environmental stewardship
costs have been determined to be non-reimbursable from the sale of
power for FY 2026-2030, and $429,904.20 annually for FY 2031-2076.
These exclusions are reflected in the Jim Woodruff Power Rate Study and
supporting documents. Certain environmental stewardship joint costs
relating to the curation of archeological and natural resources, remain
appropriately included in the projected joint expenses.
This action ensures Southeastern's rate-setting practices remain
fully aligned with federal statutes, project authorizations, and
official joint-use cost allocation reports. We believe this resolution
addresses the customers' primary concerns, safeguards power customers
from bearing unequitable costs, and upholds sound financial and
business principles.
Discussion
System Repayment
An examination of Southeastern's revised system power repayment
study, prepared in March 2026 for the Jim Woodruff Project, shows with
the proposed rates, all system power costs are paid within the
appropriate repayment period and meet the cost-recovery criteria set
forth by existing law and in DOE Order RA 6120.2. The Administrator of
Southeastern Power Administration has certified the rates are
consistent with applicable law and 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 Southeastern Administrator.
Environmental Compliance
Southeastern has determined this action fits within the following
categorical exclusion listed in appendix B of 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. Categorically excluded projects
and activities do not require preparation of either an environmental
impact statement or an environmental assessment.\1\
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, 2026, attached
Wholesale Power Rate Schedule JW-1-M. The rate schedule shall remain in
effect on an interim basis through September 30, 2031, unless such
period is extended or until FERC confirms and approves it or a
substitute rate schedule on a final basis.
Signing Authority
This document of the Department of Energy was signed on September
17, 2026, 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 18, 2026.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
Wholesale Power Rate Schedule JW-1-M
Availability: This rate schedule shall be available to public
bodies and cooperatives receiving delivery within the state of Florida
from the Jim Woodruff Project (hereinafter called the Project).
Applicability: This rate schedule shall be applicable to capacity
and accompanying energy made available by the Government from the
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 cycles per second delivered at the Project point of
interconnection.
Monthly Rate: The monthly rate for capacity and energy made
available or delivered under this rate schedule shall be:
Demand Charge: $9.02 per kilowatt of monthly contract demand.
Energy Charge: 24.72 mills per kilowatt-hour.
Contract Demand: The contract demand is the amount of capacity in
kilowatts stated in the contract which the Government is obligated to
supply and the Customer is entitled to receive.
Energy Made Available: The energy made available is the customer's
ratable percent of the energy made available from the Project based on
the purchaser's allocation of power to the sum of all the allocations
of Government power from the Project in each billing month, less
losses.
Billing Month: The billing month for power sold under this schedule
shall end at 12:00 midnight Central Prevailing Time on the last day of
each calendar month.
Conditions of Service: The customer shall, at its own expense,
provide,
[[Page 60122]]
arrange for and maintain transmission service necessary to receive
allocation of Government power from the Project.
October 1, 2026.
[FR Doc. 2026-19342 Filed 9-21-26; 8:45 am]
BILLING CODE 6450-01-P
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</html>Indexed from Federal Register on September 22, 2026.
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