![[logo] US EPA](http://www.epa.gov/epafiles/images/logo_epaseal.gif){kind=logo}
Salt Lake City Area Integrated Projects Firm Power, Colorado River Storage Project Transmission and Ancillary Services Rates--Rate Order No. WAPA-137
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: January 4, 2008 (Volume 73, Number 3)]
[Notices]
[Page 858-860]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04ja08-23]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Western Area Power Administration
Salt Lake City Area Integrated Projects Firm Power, Colorado
River Storage Project Transmission and Ancillary Services Rates--Rate
Order No. WAPA-137
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Power Rates.
-----------------------------------------------------------------------
SUMMARY: The Western Area Power Administration (Western) is proposing
adjustments to the Salt Lake City Area Integrated Projects (SLCA/IP)
firm power rates and the Colorado River Storage Project (CRSP)
Transmission and Ancillary Services Rates. The SLCA/IP consists of the
CRSP, Collbran, and Rio Grande projects, which were integrated for
marketing and ratemaking purposes on October 1, 1987, and two
participating projects of the CRSP that have power facilities, the
Dolores and Seedskadee projects. The current rates, under Rate Schedule
SLIP-F8, expire September 30, 2010, but are not sufficient to meet the
SLCA/IP revenue requirements. The proposed rates will provide
sufficient revenue to pay all annual costs, including operation,
maintenance, and replacements (OM&R), interest expenses, and the
required repayment of investment within the allowable period.
The only proposed changes to the CRSP Transmission and Ancillary
Services Rates are to change the expiration dates to September 30,
2010, in alignment with the SLCA/IP firm power rates.
Western will prepare a brochure that provides detailed information
on the rates to all interested parties. The proposed rates under Rate
Schedules SLIP-F9, SP-PTP7, SP-NW3, SP-NFT6, SP-CF1, SP-SD3, SP-RS3,
SP-EI3, SP-FR3, and SP-SSR3 are scheduled to go into effect on October
1, 2008. Publication of this Federal Register notice begins the formal
process for the proposed rates.
DATES: The consultation and comment period begins today and will end
April 3, 2008. Western will present a detailed explanation of the
proposed rates at a public information forum to be held on February 5,
2008, at 1:30 p.m. Western will accept oral and written comments at a
public comment forum to be held on March 4, 2008, at 1:30 p.m. Western
will accept written comments any time during the consultation and
comment period.
ADDRESSES: Send written comments to Mr. Bradley S. Warren, CRSP
Manager, Colorado River Storage Project Management Center, Western Area
Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake
City, UT 84111-1580, (801) 524-5493, e-mail CRSPMCadj@wapa.gov. Western
will post information about the rate process on its Web site under the
``FY 2009 SLCA/IP Rate Adjustment'' section located at:
http://www.wapa.gov/CRSP/ratescrsp/default.htm.
Western will post official comments received by letter and e-mail
to its Web site after the close of the comment period. Western must
receive written comments by the end of the consultation and comment
period to ensure consideration in Western's decision process. The
public information forum and public comment forum will be held at the
Radisson Hotel Salt Lake City Airport, 2177 West North Temple, Salt
Lake City, UT 84116-3196.
FOR FURTHER INFORMATION CONTACT: Ms. Carol A. Loftin, Rates Manager,
Colorado River Storage Project Management Center, Western Area Power
Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City,
UT 84111-1580, (801) 524-6380, e-mail loftinc@wapa.gov.
SUPPLEMENTARY INFORMATION: The proposed rates for SLCA/IP firm power
are designed to return an annual amount of revenue to meet the
repayment of power investment, payment of interest, purchased power,
OM&R expenses, and the repayment of irrigation assistance costs as
required by law.
The Deputy Secretary of Energy approved Rate Schedule SLIP-F8 for
firm power service on August 1, 2005.\1\ Rate Schedule SLIP-F8 became
effective on October 1, 2005, for a 5-year period ending September 30,
2010. Under Rate Schedule SLIP-F8, the energy rate is 10.43 mills per
kilowatthour (mills/kWh), and the capacity rate is $4.43 per
kilowattmonth (kWmonth). The composite rate is 25.28 mills/kWh. The
Deputy Secretary of Energy also approved a rate extension for the CRSP
Transmission and Ancillary Services Rates through September 30, 2010.\2\
---------------------------------------------------------------------------
\1\ Rate Order No. WAPA-117, 70 FR 47823, August 15, 2005. FERC
confirmed and approved the rate schedules on June 13, 2006, under
FERC Docket No. EF05-5171-000 (115 FERC 62,271). Approved Rate
Schedule SLIP-F8 became effective on October 1, 2005, for a 5-year
period ending September 30, 2010.
\2\ Rate Order WAPA-132, 72 FR 37758, July 11, 2007. Extended
Rate Schedules SP-PTP6, SP-NW2, SP-NFT5, SP-SD2, SP-RS2, SP-E12, SP-
FR2, and SP-SSR1 for transmission and ancillary services were
previously submitted as Rate Order No. WAPA-99, 67 FR 60656
(September 26, 2002), and approved by FERC on November 14, 2003 (105
FERC 62,093).
---------------------------------------------------------------------------
[[Page 859]]
Firm Power Rates
The proposed rates are expected to become effective October 1,
2008. The proposed rates revenue requirements are based on the FY 2009
work plans for Western and the Bureau of Reclamation (Reclamation).
These work plans form the bases for the FY 2009 Congressional budgets
for the two agencies. The most current work plans will be included in
the Rate Order submission. The FY 2006 historical data are the latest
available for the rate proposal. The final ratesetting study will
include the FY 2007 historical data as it becomes available.
The rate increase results primarily from the increase in the
operation, maintenance, purchase power expense, and interest expense
from the continued drought in the Upper Colorado River region. As in
the prior rate adjustment for firm power, Western will determine
firming energy purchase expense by using Median Hydrology. The table
below displays the current and proposed firm power rates.
Comparison of Current and Proposed Firm Power Rates
----------------------------------------------------------------------------------------------------------------
Proposed rate
Current rate October October 1, 2008- Change
Rate schedule 1, 2006-September September 30, 2013 (percent)
30, 2010 SLIP-F8 SLIP-F9
----------------------------------------------------------------------------------------------------------------
Base Rate:
Energy: (mills/kWh)................................ 10.43 11.95 15
Capacity: ($kW/month).............................. 4.43 5.08 15
Composite Rate: (mills/kWh)............................ 25.28 28.85 14
----------------------------------------------------------------------------------------------------------------
Cost Recovery Charge (CRC)
In setting its firm power rate, Western forecasts generation
available from the SLCA/IP units and projects the firming energy
purchase expense over the ratesetting period. These firming expense
projections are included in the annual revenue requirement of the firm
power rate. Over the last several years, both hydropower generation and
power prices have been highly volatile. This volatility has caused
actual purchased power expenses to be significantly higher than
forecasted and has resulted in cost recovery issues for the SLCA/IP. To
adequately recover expenses in times of financial hardship, Western
will continue to calculate the cost recovery charge as in the current
rate (SLIP-F8).
The CRC is an additional charge on all Sustainable Hydropower
energy deliveries (long-term SLCA/IP hydropower capacity with energy)
that may, at times, be applicable when cost recovery is at risk due to
low hydropower generation and high prices for firming power. The
conditions that would trigger the CRC, as well as a more detailed
formula methodology of how and when the CRC would apply, will be discussed
in further detail in the rate brochure and at the information forum.
An environmental impact statement is being conducted by Reclamation
for ``Colorado River Interim Guidelines for Lower Basin Shortages and
Coordinated Operations for Lakes Powell and Mead'' is in process, and
the preferred alternative will more than likely result in less water
releases during certain drought criteria. Therefore, Western has also
included a mechanism that allows Western to re-calculate the CRC if the
annual water release from Glen Canyon Dam falls below that of 8.23
million acre-feet.
Transmission and Ancillary Service Rates
Western is not proposing at this time to change the formula-based
rate for Firm Point-to-Point, Network, and non-firm Transmission
Services or Ancillary Services that have been offered in both the WACM
and the WALC control areas. These are being included in this rate
process, however, to extend these formula rates through September 30,
2013, along with the firm power rates.
Legal Authority
Since the proposed rates constitute a major rate adjustment as
defined by 10 CFR Part 903, Western will hold both a public information
forum and a public comment forum. After reviewing public comments and
making possible amendments or adjustments to its proposed rates,
Western will recommend the Deputy Secretary of Energy approve the
proposed rates on an interim basis.
Western is establishing firm electric service rates for SLCA/IP
under the Department of Energy Organization Act (42 U.S.C. 7152); the
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and
supplemented by subsequent laws, particularly section 9(c) of the
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)); and other acts
that specifically apply to the projects involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western'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, to remand, or to
disapprove such rates to the Federal Energy Regulatory Commission
(FERC). Existing Department of Energy (DOE) procedures for public
participation in power rate adjustments (10 CFR Part 903) were
published on September 18, 1985 (50 FR 37835).
Availability of Information
All brochures, studies, comments, letters, memorandums, or other
documents that Western initiates or uses to develop the proposed rates
are available for inspection and copying at the Colorado River Storage
Project Management Center, 150 East Social Hall Avenue, Suite 300, Salt
Lake City, Utah. Many of these documents and supporting information are
also available on its Web site under the ``FY 2009 SLCA/IP Rate
Adjustment'' section located at
http://www.wapa.gov/CRSP/ratescrsp/default.htm.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969, 42 U.S.C. 4321, et seq.; the Council on Environmental Quality
Regulations for implementing NEPA (40 CFR Part 1500-1508); and DOE NEPA
Implementing Procedures and Guidelines (10 CFR Part 1021), Western has
determined that this action is categorically excluded from the preparation
of an environmental assessment or an environmental impact statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no
[[Page 860]]
clearance of this notice by the Office of Management and Budget is
required.
Dated: December 5, 2007.
Timothy J. Meeks,
Administrator.
[FR Doc. E7-25459 Filed 1-3-08; 12:05 pm]
BILLING CODE 6450-01-P