[Federal Register: August 19, 2008 (Volume 73, Number 161)]
[Notices]
[Page 48381-48382]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19au08-51]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Central Valley Project--Rate Order No. WAPA-139
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Order Temporarily Extending Formula Rates for Power,
Transmission, and Ancillary Services.
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SUMMARY: This action is to temporarily extend the existing formula
rates for power, transmission, and ancillary services for the Central
Valley Project (CVP), transmission service on the California-Oregon
Transmission Project (COTP), transmission service on the Pacific
Alternating Current Intertie (PACI), and third-party transmission
service through September 30, 2011. This action also extends the
Western Area Power Administration's (Western) recovery methodology of
the Path 15 revenue requirement through September 30, 2011. Without
this extension, formula rates for power, transmission, and ancillary
services for the CVP, transmission service on the COTP, transmission
service on the PACI, and third-party transmission service will expire
September 30, 2009.
FOR FURTHER INFORMATION CONTACT: Mr. Thomas R. Boyko, Regional Manager,
Sierra Nevada Customer Service Region, Western Area Power
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4418, e-mail boyko@wapa.gov or Mr. Charles J. Faust, Rates Manager,
Sierra Nevada Customer Service Region, Western Area Power
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4468, e-mail faust@wapa.gov.
SUPPLEMENTARY INFORMATION: 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 the Administrator of the
Western Area Power Administration, (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).
The existing formula rates contained under Rate Order No. WAPA-
115\1\ became effective on January 1, 2005, and were approved for 4
years and 9 months through September 30, 2009. Subsequent to Rate Order
No. WAPA-115, Western completed a minor rate adjustment, Rate Order No.
WAPA-128,\2\ which removed the reactive power costs from the
Transmission Revenue Requirement and recovered these costs in the Power
Revenue Requirement. This rate adjustment modified the formula rates
associated with power and transmission service for the CVP and
transmission service on the COTP and PACI. WAPA-128 became effective on
September 1, 2006, and was approved for a period of 3 years and 1
month. Both rate orders (WAPA-115 and WAPA-128) expire on September 30,
2009. Western is extending the existing formula rates for power,
transmission, and ancillary services on the CVP, transmission service
on the COTP, transmission service on the PACI, third-party transmission
service, and the Path 15 revenue requirement methodology in accordance
with 10 CFR part 903.23(b). Western seeks this extension to provide
sufficient time for an informal rate process which will allow Western
to meet and collaborate with its customers on the development of rates
to replace the current rates. This extension allows Western and its
customers the opportunity to evaluate the impacts of proposed market
and industry initiatives, such as the California Independent System
Operator's (CAISO) Market Redesign and Technology Upgrade (MRTU) and
FERC Orders 890 and 890A, on the existing rate designs. The existing
formula rate methodology collects annual revenue sufficient to recover
annual expenses (including interest) and capital requirements, thus
ensuring repayment of the project within the cost recovery criteria set
forth in DOE Order RA 6120.2. This extension will permit a concurrent
public process and rate approval period for the formula rates for
power, transmission, and ancillary services for the CVP, transmission
service on the COTP, transmission service on the PACI, and third-party
transmission service through September 30, 2011. Upon its approval,
Rate Order No. WAPA-115 and Rate Order No. WAPA-128 will be extended
under Rate Order No. WAPA-139.
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\1\ WAPA-115 was approved by FERC on a final basis on October
11, 2005, in Docket No. EF05-5011-000 (113 FERC ] 61,026).
\2\ WAPA-128 was approved by FERC on a final basis on January
25, 2007, in Docket No. EF06-5011-000 (118 FERC ] 61,052 (2007)).
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Western did not have a consultation and comment period and did not
hold public information and comment forums which, in accordance with 10
CFR part 903.23(b), are not required. Following review of Western's
proposal within the DOE, I hereby approve Rate Order No. WAPA-139 which
extends the existing formula rates for the power, transmission, and
ancillary services for the CVP, transmission service for the COTP,
transmission service for the PACI, and third-party transmission service
through September 30, 2011. This approval also extends Western's
recovery of the Path 15 revenue requirement through the same time
period.
Dated: August 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
Department of Energy
Deputy Secretary
Rate Order No. WAPA-139.
In the Matter of: Western Area Power Administration Rate
Extension for the Central Valley Project, the California-Oregon
Transmission Project, the Pacific Alternating Current Intertie, and
Third-Party
[[Page 48382]]
Transmission. Extend Path 15 Revenue Requirement Methodology
Order Confirming and Approving a Temporary Extension of the Formula
Rates for Power, Transmission, and Ancillary Services for the Central
Valley Project, Transmission Service for the California-Oregon
Transmission Project, Transmission Service for the Pacific Alternating
Current Intertie, and Third-Party Transmission Service
The formula rates for power, transmission, and ancillary
services were established following section 302 of the Department of
Energy (DOE) Organization Act (42 U.S.C. 7152). This Act transferred
to and vested in the Secretary of Energy the power marketing
functions of the Secretary of the Department of the Interior and the
Bureau of Reclamation under 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
project system 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 the Administrator of the Western
Area Power Administration (Western), (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).
Background
The existing formula rates for custom product power, ancillary
services, and third-party transmission service contained in Rate
Order No. WAPA-115\1\ were approved for 4 years and 9 months and are
effective through September 30, 2009. The existing formula rates for
power and transmission service on the Central Valley Project (CVP),
transmission service on the California-Oregon Transmission Project
(COTP), and the Pacific-Alternating Current Intertie (PACI)
contained in Rate Order No. WAPA-128 \2\ were approved for 3 years
and 1 month and are effective through September 30, 2009.
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\1\ Rate Order No. WAPA-115, 69 FR 70510 (December 6, 2004).
Approved by FERC on October 11, 2005 (113 Commission ] 61,026).
\2\ Rate Order No. WAPA-128, 71 FR 45821 (August 10, 2006).
Approved by FERC on January 25, 2007 (118 Commission ] 61,052).
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Discussion
Western is entering a public process to modify the existing
formula rates for power, transmission, and ancillary services for
the CVP, transmission service on the COTP, transmission service on
the PACI, and third-party transmission service. This public process
will also address Western's recovery of the Path 15 revenue
requirement. Western seeks this extension to provide more time for
an informal rate process which will allow Western to meet and
collaborate with its customers on the development of rates to
replace the current rates. This extension allows Western and its
customers the opportunity to evaluate the impacts of proposed market
and industry initiatives, such as the California Independent System
Operator's Market Redesign and Technology Upgrade and FERC Orders
890 and 890A, on the existing rate designs. The existing power,
transmission, and ancillary services formula rate methodologies
collect annual revenues sufficient to recover annual expenses,
including interest and capital requirements, thus ensuring repayment
of the project within the cost recovery criteria set forth in DOE
Order RA 6120.2. As permitted by 10 CFR part 903.23(b), Western did
not have an advanced notice and comment period and did not hold
public information and comment forums on the temporary extension of
the formula rates for power, transmission, and ancillary services
for the CVP, transmission service on the COTP, transmission service
on the PACI, and third-party transmission service.
Order
In view of the above and under the authority delegated to me, I
hereby extend for a period effective from October 1, 2009, through
September 30, 2011, the existing formula rates under Rate Schedules
CV-F12, CPP-1, CV-T2, CV-NWT4, PACI-T2, COTP-T2, CV-TPT6, CV-SPR3,
CV-SUR3, CV-RFS3, CV-EID3 for the Central Valley and the California-
Oregon Transmission Projects, and the Pacific-Alternating Current
Intertie of the Western Area Power Administration.
Dated: August 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
[FR Doc. E8-19153 Filed 8-18-08; 8:45 am]
BILLING CODE 6450-01-P