[Federal Register: June 26, 2006 (Volume 71, Number 122)]
[Notices]
[Page 36332-36343]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26jn06-48]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Desert Southwest Customer Service Region-Rate Order No. WAPA-127
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Order Concerning Network Integration Transmission and
Ancillary Services Rates.
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SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-127 and Rate Schedules PD-NTS2 and INT-NTS2, placing
rates for Network Integration Transmission Service (Network Service)
for the Parker-Davis Project (PDP) and the Pacific Northwest-Pacific
Southwest Intertie Project (Intertie) of the Western Area Power
Administration (Western) into effect on an interim basis. The Deputy
Secretary of Energy also confirmed Rate Schedules DSW-SD2, DSW-RS2,
DSW-FR2, DSW-EI2, DSW-SPR2, and DSW-SUR2, placing ancillary services
rates from the PDP, Boulder Canyon Project (BCP), Central Arizona
Project (CAP), and that part of the Colorado River Storage Project
(CRSP) located in the Western Area Lower Colorado (WALC) Balancing
Authority and Transmission Operations Area (BATO) into effect on an
interim basis. The provisional rates will be in effect until the
Federal Energy Regulatory Commission (Commission) confirms, approves,
and places them into effect on a final basis or until they are replaced
by other rates. The provisional rates will provide sufficient revenue
to pay all annual costs, including interest expense, and repay power
investment and irrigation aid, within the allowable periods.
DATES: Rate Schedules DSW-SD2, DSW-RS2, DSW-FR2, DSW-EI2, DSW-SPR2,
DSW-SUR2, PD-NTS2, and INT-NTS2 will be placed into effect on an
interim basis on the first day of the first full billing period
beginning on or after July 1, 2006, and will be in effect until the
Commission confirms, approves, and places the rate schedules in effect
on a final basis through June 30, 2011, or until the rate schedules are
superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Team Lead,
Desert Southwest Customer Service Region, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457; (602) 605-2442,
e-mail jmurray@wapa.gov.
SUPPLEMENTARY INFORMATION: The Secretary of Energy approved Rate
Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1, PD-
NTS1, and INT-NTS1 for the Desert Southwest Region (DSWR) network
service for PDP and Intertie, and ancillary services for the WALC BATO
on May 3, 1999 (Rate Order No. WAPA-84, 64 FR 25323, May 11, 1999). The
Commission confirmed and approved the rate schedules on January 20,
2000, in FERC Docket No. EF99-5041-000, (90 FERC 62,032). Approval for
Rate Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1,
PD-NTS1, and INT-NTS1 covered 5 years beginning on April 1, 1999, and
ending on March 31, 2004. These rate schedules were extended by a
series of Rate Orders through September 30, 2006, with the most recent
Rate Order being Rate Order No. WAPA-129 (71 FR 16572, April 3, 2006).
The rate schedules were extended to accommodate the Desert Southwest
Region (DSWR) Multi-System Transmission Rate (MSTR) process. An MSTR
has not been approved. However, Western plans to seek approval of an
MSTR for short-term and non-firm transactions in the future.
The provisional formula for Network Service in Rate Schedules PD-
NTS2 and INT-NTS2 will be the same as the existing formula rates for
Network Service under Rate Schedules PD-NTS1 and INT-NTS1.
The existing transmission rates include costs for Scheduling,
System Control, and Dispatch Services. The transmission provisional
formula rates include the costs of these services.
Rate Schedules DSW-SD2, DSW-RS2, DSW-FR2, DSW-EI2, DSW-SPR2, and
DSW-SUR2 supersede Rate Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1,
DSW-SPR1, and DSW-SUR1, respectively. Spinning Reserve and Supplemental
Reserve ancillary services are being updated slightly to reflect minor
changes.
Under Schedule DSW-SD2, Scheduling, System Control, and Dispatch
Service (Scheduling Service), the rate is applied on a per tag basis.
The rate is calculated in two major steps. First, the yearly costs
associated with capital improvements are determined and divided by the
number of tags issued during the previous year. Second, the average
labor cost per tag is determined and added to the capital cost per tag.
This methodology differs from the previous methodology in that it is
based on tags rather than schedules and a single rate is applied to all
transactions. These changes were made because the tag was not used as a
billing unit when the rates under Rate Order No. WAPA-84 were
developed.
Under Schedule DSW-RS2, Reactive Supply and Voltage Control Service
from Generation Sources (Voltage Support Service), the rate is
determined by dividing the revenue requirement for the service by the
reservations for the service. The revenue requirement for the service
is one minus the power factor (1-PF) times the combined generation
[[Page 36333]]
revenue requirement of the PDP, BCP, and CRSP. The previous methodology
used the factor (1-PF\2\) to determine the Voltage Support revenue
requirement for BCP and PDP.
Under Schedule DSW-FR2, Regulation and Frequency Response Service
(Regulation Service), the rate for standard loads is determined using
the revenue requirement for the service divided by the load in the WALC
BATO requiring the service. The revenue requirement for the service is
the product of the generation capacity that is used for regulation
times the capacity rate of the Project, plus any regulation purchases
the transmission provider must make. This total is multiplied by a use
factor, which takes into consideration the customer load in the WALC
BATO. The denominator in the equation and the load in the BATO
requiring the service include a portion of the CRSP load and the DSWR
load.
Long-term Regulation Service is not available from DSWR resources.
However, if necessary, DSWR will purchase long-term regulation service
on a pass-through cost basis on the open market for a charge that
covers the cost of procuring and supplying the service. Short-term
Regulation Service will be supplied from DSWR resources if such
resources are available. Under Rate Schedule DSW-FR1, Western offered
this service for short-term sales, but set the charge equal to the
capacity rate of the Project supplying the service rather than basing
the charge on a formula. The provisional methodology is being used
because existing technology gives Western the ability to measure
Regulation Service more accurately than when the previous rate was
developed.
Non-conforming loads are volatile loads (such as those associated
with certain smelters and arc furnaces) that can require a BATO to
acquire significant amounts of generation capacity for regulation. Such
non-conforming loads require separate metering of their moment-to-
moment load values to accurately calculate their effects on the system
and will not be covered under the provisional Regulation Service rate.
DSWR defines a non-conforming load as either a single plant or site
with a regulation capacity requirement of 5 megawatts (MW) or greater
on a recurring basis and a capacity requirement that is equal to 10
percent or greater of its average load. Regulation Service for non-
conforming loads, as determined by Western, must be delineated in a
service agreement and charged an amount that includes the cost to
procure the service and the additional cost required to monitor and
supply this service.
Rate Schedule DSW-EI2, Energy Imbalance Service, establishes a
bandwidth to differentiate the settlement percentage required for
deviations between scheduled and actual load. That portion of the
customer's energy imbalance that is within the bandwidth will be
settled with a one to one return of energy. In lieu of an energy
settlement, Western, at its discretion, can use a financial settlement
equal to a weighted index price (described below) times the energy.
The bandwidth for on-peak is plus or minus 1.5 percent of the
customer's load with a minimum of 5 MW for either over-delivery or
under-delivery. The off-peak bandwidth is plus 1.5 percent to negative
3 percent of a customer's load with a minimum of 2 MW for over-delivery
and 5 MW for under-delivery.
For that portion of the customer's energy imbalance that is outside
the bandwidth during on-peak hours, the settlement is 110 percent of
the energy imbalance for under-deliveries and 90 percent of the energy
imbalance for over-deliveries. In lieu of an energy settlement,
Western, at its discretion, can use a financial settlement equal to 110
percent of a weighted index price for under-deliveries and 90 percent
of a weighted index price for over-deliveries.
For that portion of the customer's energy imbalance that is outside
the bandwidth during the off-peak hours, the settlement is 110 percent
of the energy imbalance for under-deliveries. However, for over-
deliveries in the off-peak hours, the settlement is 60 percent of the
energy imbalance. In lieu of an energy settlement, Western, at its
discretion, can use a financial settlement equal to 110 percent of a
weighted index price for under-deliveries, and for over-deliveries, 60
percent of either a weighted index price or a WALC weighted sales
price, whichever is the lesser. In the event that Western accepts a
financial settlement, the index used to calculate the settlement will
be posted on the Open Access Same-Time Information System (OASIS) at
the beginning of each fiscal year. The index will be the Dow Jones Palo
Verde average monthly index or an index identified on the OASIS at the
beginning of each fiscal year. Settlement for the hourly deviations
will occur on a monthly basis.
The provisional rate methodology differs from the previous
methodology in that previously, DSWR used the Commission pro-forma
methodology to define the service. Under the provisional rate, the
bandwidth was increased to equitably treat customers that do not have
generation capabilities. The settlement for over-deliveries during the
off-peak hours is set at 60 percent of the energy imbalance to
discourage over-deliveries at a time when WALC has the least amount of
load in the BATO. The 100 mills per kilowatthour penalty established in
the pro-forma methodology was replaced with the percent of an index in
the provisional methodology to reflect the volatility of the energy
market.
Under Schedule DSW-SPR2, Operating Reserves-Spinning Reserve
Service (Spinning Service) is not available from DSWR resources on a
long-term firm basis. If a customer cannot self-supply or purchase this
service from another provider, Western may obtain the Spinning Service
on the open market on a pass-through cost basis for a charge that
covers the cost of procuring the service. The transmission customer
will be responsible for the transmission service to get this Spinning
Service to the destination.
Under Schedule DSW-SUR2, Operating Reserves-Supplemental Reserve
Service (Supplemental Service) is not available from DSWR resources on
a long-term firm basis. If a customer cannot self-supply or purchase
this service from another provider, Western may obtain Supplemental
Service on the open market on a pass-through cost basis for a charge
that covers the cost of procuring the service. The transmission
customer will be responsible for the transmission service to get this
Supplemental Service to the destination.
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 Commission. Existing DOE procedures for
public participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985.
Under Delegation Order Nos. 00-037.00 and 00-001.00B, 10 CFR part
903, and 18 CFR part 300, I hereby confirm, approve, and place Rate
Order No. WAPA-127, the provisional network service for the PDP and
Intertie systems, and for ancillary services from the PDP, BCP, and
that part of the CRSP located in the WALC BATO into effect on an
interim basis. The new Rate Schedules DSW-SD2, DSW-RS2, DSW-
[[Page 36334]]
FR2, DSW-EI2, DSW-SPR2, DSW-SUR2, PD-NTS2, and INT-NTS2, will be
submitted promptly to the Commission for confirmation and approval on a
final basis.
Dated: June 13, 2006.
Clay Sell,
Deputy Secretary.
Department of Energy, Deputy Secretary
In the Matter of: Western Area Power Administration Rate Adjustment for
the Desert Southwest Customer Service Region
[Rate Order No. WAPA-127]
Order Confirming, Approving, and Placing the Desert Southwest Customer
Service Region Network Integration Transmission and Ancillary Services
Rates Into Effect on an Interim Basis
This rate was established in accordance with 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
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 Commission. Existing DOE procedures for
public participation in power rate adjustments (10 CFR part 903) were
published on September 18, 1985.
Acronyms and Definitions
As used in this Rate Order, the following acronyms and definitions
apply:
12-CP: 12-month coincident peak average.
Administrator: The Administrator of the Western Area Power
Administration.
Ancillary Services: Those services necessary to support the transfer of
electricity while maintaining reliable operation of the transmission
system in accordance with standard utility practice.
BATO: Balancing Authority and Transmission Operations area. Formerly
referred to as a Control Area.
BCP: Boulder Canyon Project.
CAP: Central Arizona Project.
Capacity: The electric capability of a generator, transformer,
transmission circuit, or other equipment. It is expressed in kilowatts.
Capacity Rate: The rate which sets forth the charges for capacity. It
is expressed in $ per kilowattmonth.
Commission: Federal Energy Regulatory Commission.
CROD: Contract rate of delivery. The maximum amount of capacity made
available to a preference customer for a period specified under a
contract.
CRSP: Colorado River Storage Project.
CRSP MC: The CRSP Management Center of Western.
Customer: An entity with a contract that is receiving service from
Western's DSWR or CRSP MC.
DOE: United States Department of Energy.
DOE Order RA 6120.2: An order outlining power marketing administration
financial reporting and ratemaking procedures.
DSWR: The Desert Southwest Region of Western.
Energy: Measured in terms of the work it is capable of doing over a
period of time. It is expressed in kilowatthours.
FERC: The Commission (to be used when referencing Commission Orders).
Firm: A type of product and/or service available at the time requested
by the customer.
FRN: Federal Register notice.
FY: Fiscal year; October 1 to September 30.
Integrated Projects: The resources and revenue requirements of the
Collbran, Dolores, Rio Grande, and Seedskadee projects blended together
with the CRSP to create the SLCA/IP resources and rate.
Intertie: Pacific Northwest-Pacific Southwest Intertie Project.
kW: Kilowatt--the electrical unit of capacity that equals 1,000 watts.
kWh: Kilowatthour--the electrical unit of energy that equals 1,000
watts in 1 hour.
kWmonth: Kilowattmonth--the electrical unit of the monthly amount of
capacity.
Load: The amount of electric power or energy delivered or required at
any specified point(s) on a system.
Merchant Function: A power marketing function within the CRSP MC and
DSWR that balances loads and resources for the CRSP MC, DSWR, other
regions within Western, and customers, and purchases and sells energy
on the open market.
mill: A monetary denomination of the United States that equals one
tenth of a cent or one thousandth of a dollar.
mills/kWh: Mills per kilowatthour--the unit of charge for energy.
MW: Megawatt--the electrical unit of capacity that equals 1 million
watts or 1,000 kilowatts.
Non-firm: A type of product and/or service not always available at the
time requested by the customer.
O&M: Operation and Maintenance.
OASIS: Open Access Same-Time Information System--provides access to
information on transmission pricing and availability for potential
transmission customers.
OATT: Open Access Transmission Tariff.
PDP: Parker-Davis Project.
Power: Capacity and energy.
Project Use Power: Capacity and energy reserved for Federal Reclamation
project use and irrigation pumping for PDP, CAP, and SLCA/IP under
Reclamation Law.
Provisional Rate: A rate that has been confirmed, approved, and placed
into effect on an interim basis by the Deputy Secretary.
PRS: Power Repayment Study.
Rate Brochure: A document explaining the rationale and background for
the rate proposal contained in this Rate Order.
Reclamation: United States Department of the Interior, Bureau of
Reclamation.
Reclamation Law: A series of Federal laws. Viewed as a whole, these
laws create the originating framework under which Western markets
power.
Revenue Requirement: The revenue required to recover annual expenses
(such as O&M, purchase power, transmission service expenses, interest,
and deferred expenses) and repay Federal investments, and other
assigned costs.
SCADA: Supervisory Control and Data Acquisition.
SLCA/IP: Salt Lake City Area Integrated Projects--The resources and
revenue requirements of the Collbran, Dolores, Rio Grande, and
Seedskadee projects blended together with the CRSP to create the SLCA/
IP resources and rate.
Supporting Documentation: A compilation of data and documents
[[Page 36335]]
that support the Rate Brochure and the rate proposal.
WALC: Western Area Lower Colorado BATO, operated by DSWR.
Western: United States Department of Energy, Western Area Power
Administration.
Effective Date
The new interim rates will take effect on the first day of the
first full billing period beginning on or after July 1, 2006, and will
remain in effect until June 30, 2011, pending approval by the
Commission on a final basis.
Public Notice and Comment
Western followed the Procedures for Public Participation in Power
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in
developing these rates. The steps Western took to involve interested
parties in the rate process were:
1. The rate adjustment process began June 14, 2005, when Western
mailed a notice announcing informal customer meetings to all DSWR
customers and interested parties.
2. Western held an informal meeting on June 27, 2005, in Phoenix,
Arizona. At this informal meeting, Western explained the rationale for
the rate adjustment, presented rate designs and methodologies, and
answered questions.
3. A Federal Register notice, published on October 12, 2005 (70 FR
59335), announced the proposed rates for DSWR, began a public
consultation and comment period, and announced the public information
and public comment forums.
4. On October 21, 2005, Western mailed letters to all DSWR
customers and interested parties transmitting the Federal Register
notice and announcing the posting of the Brochure for Proposed Rates on
the DSWR Web site.
5. On November 2, 2005, beginning at 1 p.m., Western held a public
information forum at the DSWR office in Phoenix, Arizona. Western
provided detailed explanations of the proposed rates and answered
questions. Western provided documentation and informational handouts.
6. On November 29, 2005, beginning at 1 p.m., Western held a public
comment forum at the DSWR Office in Phoenix, Arizona to give the public
an opportunity to comment for the record. One individual spoke at this
meeting.
7. On December 12, 2005, Western sent letters to all DSWR customers
and interested parties clarifying answers to several questions from
customers attending the public information forum and an informational
request from a customer at the public comment forum.
8. Western received one comment letter during the consultation and
comment period, which ended January 10, 2006. All formally submitted
comments have been considered in preparing this Rate Order.
Comments
Written comments were received from the Navajo Agricultural
Products Industry, New Mexico.
Representatives of Utility Strategies Consulting Group, Arizona,
and Salt River Project, Arizona, made oral comments at either the
public information forum or the public comment forum.
Project Description
Parker-Davis Project
The PDP was formed by consolidating two projects, Davis Dam and
Parker Dam, under terms of the Act of May 28, 1954. Parker Dam and
Powerplant, which created Lake Havasu 155 miles below Hoover Dam on the
Colorado River, was authorized by the Rivers and Harbors Act of August
30, 1935. Reclamation constructed the project partly with funds
advanced by the Metropolitan Water District (MWD) of Southern
California, which now diverts nearly 1.2 million acre-feet of water
each year by pumping it from Lake Havasu. The cooperative contract for
construction and operation of Parker Dam was executed in 1933, under
which MWD receives half of the capacity and energy from four generating
units. The Federal share of the Parker Powerplant capacity, as
determined by Reclamation, is 54,000 kW.
Power generated from the PDP is marketed to customers in Nevada,
Arizona, and California. Excluding project use, the marketing criteria
provide for marketing 185,530 kW of capacity in the winter season and
242,515 kW of capacity in the summer season. Customers receive 1,703
kWh per kW in the winter season and 3,441 kWh per kW in the summer
season. Excluding project use, total marketable energy is 316 million
kWh in the winter season and 835 million kWh in the summer season.
A portion of the resource marketed is reserved for United States
use, but is not presently needed. This portion (9,460 kW of capacity
and associated energy in the winter season and 16,030 kW of capacity
and associated energy in the summer season) is withdrawable from
existing customers upon two years' written notice. Existing PDP firm
power contracts have been extended to September 30, 2028. About 72
percent of PDP firm energy sales are made to 5 of the 46 customers,
with about 50 percent of the energy marketed to customers in Arizona.
Pacific Northwest-Pacific Southwest Intertie Project
The Intertie was authorized by section 8 of the Pacific Northwest
Power Marketing Act of August 31, 1964. Originally, the Intertie was to
be a combined alternating current (AC) and direct current (DC) system,
which was to connect the Pacific Northwest with the Desert Southwest.
As authorized, the overall project was to be a cooperative construction
venture between Federal and non-Federal entities.
Due to delays in construction funding, the estimated in-service
date of the Intertie was revised to the point that interest by
potential users waned. These events resulted in the indefinite
postponement of DC line construction. Consequently, the facilities
constructed provide only AC transmission service.
Western's portion of the Intertie consists of two parts--a northern
portion and a southern portion. The northern portion is administered by
Western's Sierra Nevada Region and is incorporated, for repayment and
operation, with the Central Valley Project. The northern portion
consists of a 94-mile, 500-kV transmission line from Malin Substation
in Oregon to Round Mountain to Cottonwood Substation in California.
The southern portion of the Intertie is administered by Western's
Desert Southwest Region and is treated as a separate stand-alone
project for repayment and operational purposes. It consists of a 238-
mile, 345-kV transmission line from Mead Substation in Nevada to
Liberty Substation in Arizona; a 19-mile, 230-kV transmission line from
Liberty to Westwing Substation in Arizona; a 22-mile, 230-kV
transmission line from Westwing to Pinnacle Peak Substation in Arizona;
and two segments that came on-line in April 1996: the 256-mile Mead-
Phoenix 500-kV AC Transmission Line between Marketplace Substation in
Nevada and Perkins Substation in Arizona and the 202-mile Mead-Adelanto
500-kV AC Transmission Line between Marketplace in Nevada and the
existing Adelanto Switching Substation in southern California.
Boulder Canyon Project
Hoover Dam, the highest and third largest concrete dam in the
United States, sits on the Colorado River along the Arizona/Nevada
border. Lake Mead, the reservoir formed behind Hoover
[[Page 36336]]
Dam, is the nation's largest man-made reservoir. It can hold a 2-year
supply of the average flow from the Colorado River with its storage
capacity of 27.38 million acre-feet.
Power from the BCP is marketed as long-term contingent capacity
with associated energy. The contingent capacity and associated energy
are available as long as, among other restrictions, sufficient water in
the reservoir allows for release of water to meet water delivery
obligations. If sufficient power to support the customer capacity
entitlements is not available, each customer's capacity entitlement is
temporarily reduced. Customers are entitled to receive 4.527 billion
kWh of energy (associated with contingent capacity) each year. If
generation at Hoover Powerplant is insufficient, Western can purchase
energy to make up the shortfall at the individual customer's request on
a pass-through cost basis.
Project power is sold in three states: Arizona, California, and
Nevada. About 56 percent of BCP energy sales revenue comes from
California customers. Of the Boulder Canyon Project's 15 customers, 11
are municipalities. These municipalities provide only 28 percent of the
revenue. Four customers account for 82 percent of the power revenue
from the project: the MWD of Southern California, Colorado River
Commission of Nevada, Arizona Power Authority, and the Los Angeles
Department of Water and Power. Existing power contracts for the BCP
expire on September 30, 2017.
Central Arizona Project
The CAP is one of three related water development projects that
make up the Colorado River Basin Project; the others are the Dixie and
the Upper Basin Projects. The CAP was developed for Arizona and western
New Mexico; the Dixie Project for southeastern Utah; and the Upper
Basin Project for Colorado and New Mexico.
Congress authorized the project in 1968 to improve water resources
in the Colorado River Basin. Segments of the 1968 authorization allowed
Federal participation in the Navajo Generating Station, which has three
coal-fired steam electric generating units for a combined capacity of
2,250 MW. The rate methodology for Network Integration Transmission
Service over CAP 115-kV and 230-kV transmission lines went into effect
on January 1, 2001, and has been revised effective January 1, 2006
through December 31, 2010, Rate Order WAPA-124 (71 FR 1533, January 10,
2006).
Salt Lake City Area/Integrated Projects
The SLCA/IP consists of the CRSP, Rio Grande, and Collbran
Projects. The CRSP includes two participating projects that have power
facilities: the Dolores and Seedskadee Projects. Western integrated the
Rio Grande and Collbran Projects with CRSP for marketing and ratemaking
purposes on October 1, 1987. The goals of integration were to increase
marketable resources and to simplify contract and rate development and
project administration by creating one rate and assuring repayment of
the Projects' costs. All Integrated Projects maintain their individual
identities for financial accounting and repayment purposes, but their
revenue requirements are integrated into one SLCA/IP PRS for
ratemaking.
Power Repayment Studies
Western prepares a separate PRS for PDP, Intertie, BCP, and SLCA/IP
and a transmission rate study for CAP each FY to determine if revenues
will be sufficient to repay, within the required time, all costs
assigned to the respective projects. Repayment criteria are based on
law, policies, including DOE Order RA 6120.2, and authorizing
legislation.
The PRS for PDP and Intertie yield revenue requirements that are
used to calculate firm transmission rates in DSWR. The PRS for PDP,
BCP, and SLCA/IP are used to determine part of the revenue requirements
for the ancillary services.
Network Integration Transmission Service
Under Rate Schedules PD-NTS2 and INT-NTS2, the methodology for
calculating the customer's monthly charge is the product of the
transmission customer's load-ratio share times one-twelfth (1/12) of
the annual transmission revenue requirement. The load-ratio share will
be based on the network customers' hourly load coincident with
appropriate power or system monthly transmission system peak, which
will be calculated on a rolling 12-CP basis. The transmission system
peak includes the sum of capacity reserved for point-to-point
transmission and the average 12-CP monthly system peak for network
transmission service.
The monthly hour of the system peak is determined as the hour that
the sum of the network customers' metered loads is the greatest. The
firm point-to-point transmission reservations include the OATT firm
point-to-point reservations, the PDP Firm Electric Service (FES)
contract rates of delivery, the pre-OATT Firm Transmission Service, and
the SLCA/IP FES with delivery points on the PDP.
Ancillary Services
Six ancillary services will be offered by DSWR, two of which
(Scheduling, System Control, and Dispatch Service; and Reactive Supply
and Voltage Control Service) are required to be purchased from the WALC
BATO. The remaining four ancillary services are Regulation and
Frequency Response Service, Energy Imbalance Service, Spinning Reserve
Service, and Supplemental Reserve Service. These four services will be
offered either from the BATO, or the DSWR or CRSP Merchant Function,
and may be taken from WALC, self-provided, or provided by another party
acceptable to Western. Sales of Regulation and Frequency Response,
Energy Imbalance, Spinning Reserve, and Supplemental Reserve Services
from WALC power resources are limited since Western has allocated all
of its power resources to preference entities under long-term
commitments. Western will determine the availability and type of
Ancillary Services based on excess resources available when the service
is requested.
The provisional rates for Ancillary Services are designed to
recover only the costs associated with providing the service(s). The
costs for providing Scheduling, System Control, and Dispatch Service
are included in the appropriate existing and provisional transmission
services rates.
Existing and Provisional Rates
Various levels of difference exist between the existing and
provisional Ancillary Service rates due to changes in the provisional
rate methodologies. The provisional Scheduling, System Control, and
Dispatch Ancillary Service methodology differs from the existing
methodology in its assessment of charges by tags instead of by
schedules, and the elimination of multiple rates distinguished by
inter-bus transfers and new versus existing schedules. The difference
in the rates is shown in Table 1.
[[Page 36337]]
Table 1.--Scheduling, System Control, and Dispatch Service
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Existing Provisional
----------------------------------------------------------------------------------------------------------------
Description Rates Description Rates
----------------------------------------------------------------------------------------------------------------
DSW-SD1.............................. Per Schedule per Day... DSW-SD2................ Per Tag.
Existing No SCADA programming or $54.99................. All applicable $18.55.
Intra-bus Transfer. transactions.
Existing No SCADA programming $73.05.................
requires Intra-bus Transfer.
New Schedule w/SCADA no Inter-bus $51.10.................
Transfer.
New Schedule w/SCADA and Intra-bus $75.26.................
Transfer.
----------------------------------------------------------------------------------------------------------------
The Reactive Supply and Voltage Control Service uses a slightly
different multiplier (1-PF versus 1-PF\2\) and removes the entities
with generation agreements to supply Voltage Support to WALC from the
denominator. The effect of these changes on the provisional rate is
shown in Table 2.
Table 2.--Reactive Supply and Voltage Control Service
----------------------------------------------------------------------------------------------------------------
Existing Provisional
----------------------------------------------------------------------------------------------------------------
Description Rates Description Rates
----------------------------------------------------------------------------------------------------------------
DSW-RS1.............................. $/kWmonth.............. DSW-RS2................ $/kWmonth.
All applicable transactions.......... $0.05.................. All applicable $0.043.
transactions.
If resources are not available....... Market Rates + 10%..... Non-conforming Loads... Cost to procure and
monitor.
----------------------------------------------------------------------------------------------------------------
The Regulation and Frequency Response Service is similar to the
existing methodology in that it highlights the lack of DSWR resources
available to supply this service on a long-term basis but instead of
using the capacity rate of the project for short-term sales, as with
the existing methodology, it specifies a rate based on the revenue
requirement for the service divided by the load requiring the service.
The rate schedule for the provisional rates defines non-conforming
loads and spells out the requirement that services for these loads will
be charged an amount that includes regulation purchased on the open
market plus the cost to procure and monitor the service. The comparison
of the existing rate to the provisional rate is shown in Table 3.
Table 3.--Regulation and Frequency Response Service
----------------------------------------------------------------------------------------------------------------
Existing Provisional
----------------------------------------------------------------------------------------------------------------
Description Rates Description Rates
----------------------------------------------------------------------------------------------------------------
DSW-FR1.............................. mills/kWh.............. DSW-FR2................ mills/kWh.
If available from DSWR Resources..... Capacity charge of If available for short 0.2049.
supplying project. term sales.
Non-conforming loads... Cost to procure and
monitor.
----------------------------------------------------------------------------------------------------------------
The methodology for the Energy Imbalance Service for the
provisional rate differs from the existing rate in several key ways:
The bandwidth differs for on and off peak, the minimum load differs for
over- and under-deliveries, and the settlement is based on a market
index rather than a penalty. The index will be the Dow Jones Palo Verde
Index unless modified as posted on the OASIS. Table 4 shows these
differences specifically.
Table 4.--Energy Imbalance Service
----------------------------------------------------------------------------------------------------------------
Provisional
Description Existing ------------------------------------------------------
On/off peak
----------------------------------------------------------------------------------------------------------------
Bandwidth......................... +/-1.5% On +/-1.5%.
Minimum........................... 3 MW 5 MW.
----------------------------------------------------------------------------------------------------------------
Bandwidth......................... +/-1.5% Off +1.5% to -3%.
Minimum........................... 3 MW 2 MW (Over Delivery).
5 MW (Under Delivery).
----------------------------------------------------------------------------------------------------------------
Energy Within Bandwidth........... No Penalty (Return On 100% of Weighted Index
100% of Energy). Price.
[[Page 36338]]
Off 100% of Weighted Index
Price (Under Delivery).
----------------------------------------------------------------------------------------------------------------
Energy Outside Bandwidth.......... 100 mills/kWh + On 110% of Weighted Index
Return of Energy. Price (Under Delivery).
90% of Weighted Index
Price (Over Delivery).
Off 110% of Weighted Index
Price (Under Delivery).
The lesser of 60% of
Weighted Index Price or
WALC Weighted Sales
Price (Over Delivery).
----------------------------------------------------------------------------------------------------------------
The Spinning and Supplemental Reserve Services under the
provisional rate methodology does not differ from the previous rate
methodology, except that the charge associated with procuring and
supplying the service is the capacity rate of the Project supplying the
service under the existing methodology and cost to procure the service
on the open market under the provisional rate methodology.
Ancillary Services Discussion
Ancillary services are necessary to provide basic transmission
service and to capture the costs associated with undertaking a
transmission transaction within a BATO. To this end, DSWR will provide
ancillary services, subject to provisions in Western's OATT. The
provisional rates for these services are designed to recover all costs
incurred for each service.
The annual generation costs included in the development of the
revenue requirement consist of operation and maintenance expenses,
administrative and general expenses, and interest and principal capital
payments. The annual PRS is the primary tool utilized to derive the
revenue requirement to be recovered from the ancillary services.
Additional tools include meter and SCADA data, and power flow studies.
Currently, DSWR is offering the following ancillary services: (1)
Scheduling, System Control, and Dispatch Service; (2) Reactive Supply
and Voltage Control Service; (3) Regulation and Frequency Response
Service; (4) Energy Imbalance Service; (5) Spinning Reserve Service;
and 6) Supplemental Reserve Service. The existing rates will expire
September 30, 2006.
The provisional rates and descriptions for the six ancillary
services are:
Provisional Ancillary Services Rates
------------------------------------------------------------------------
Ancillary service
Ancillary service type description Provisional rate
------------------------------------------------------------------------
Scheduling, System Control, Required to schedule Included in
and Dispatch. the movement of appropriate
power through, out transmission rates.
of, within, or into
a control area.
Reactive Supply and Voltage Reactive power $0.043/kWmonth.
Control. support provided
from generation
facilities that is
necessary to
maintain
transmission
voltages within
acceptable limits
of the system.
Regulation and Frequency Generation provided 0.2049 mills/kWh1.
Response. to match resources
and loads on a real-
time continuous
basis.
Regulation for Non- Volatile loads- Cost to procure and
conforming loads. regulation capacity monitor the load.
>5 MW on a regular
basis and
regulation capacity
requirement > 10
percent of average
load.
Energy Imbalance............ Provided when a Bandwidth = +or-1.5%
difference occurs of load for On-peak
between the and +1.5% and -3%
scheduled and for Off-peak.
actual delivery of Within bandwidth
energy to a load 100% of energy.\2\
located in the WALC
BATO.
Outside of
bandwidth, On-peak
110% of energy
(Under del) 90% of
energy (Over
del).\3\
Outside of
bandwidth, Off-peak
110% of energy
(Under del) 60% of
energy (Over
del).\4\
Spinning Reserve............ Needed to serve load Not available for
immediately in the long term sales.
event of a system \5\
contingency.
Supplemental Reserve........ Needed to serve load Not available for
in the event of a long term sales.
system contingency; \6\
however, it is not
available
immediately to
serve load, but
rather within a
short period of
time.
------------------------------------------------------------------------
\1\ Not available for long term. DSWR will provide from available
resources short term for rate shown.
\2\ Western, at its discretion, can accept a financial payment equal to
a weighted index price of the imbalance energy. Index will be Dow
Jones Palo Verde index or as modified by posting on the OASIS.
\3\ 110% of weighted index or 90% of weighted index.
\4\ 110% of index price or the lesser of the index price or WALC
weighted sales times 60%.
\5\ DSWR will purchase on the open market on a pass-through cost basis
plus cost associated with purchase as appropriate or provide from
available resources short term for market price of service.
\6\ DSWR will purchase on the open market on a pass-through cost basis
plus cost associated with purchase as appropriate or provide from
available resources short term for market price of service.
[[Page 36339]]
Comments
Comments and responses regarding ancillary service rates,
paraphrased for brevity when not affecting the meaning of the
statements, are discussed below. Direct quotes from comment letters are
used for clarification where necessary. Responses to the two oral
comments were included in the December 12, 2005, customer letter and
are not in this document.
Comment: A customer stated that their organization was ``in the
early stages of developing and coordinating an energy demand schedule''
and requested that Western not impose the ``imbalance penalty
charges.''
Response: DSWR included the penalties in the energy imbalance
service to encourage customers to accurately estimate their loads when
requesting schedules. The penalties are also designed to reduce the
opportunity for an entity to reduce its energy costs by using DSWR's
resources. This practice will help Western provide BATO services at the
lowest possible cost.
Availability of Information
Information about this rate adjustment, including PRSs, comments,
letters, memorandums, and other supporting material made or kept by
Western and used to develop the provisional rates, is available for
public review in the Desert Southwest Regional Office, Western Area
Power Administration, 615 South 43rd Avenue, Phoenix, Arizona.
Regulatory Procedure Requirements
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.)
requires Federal agencies to perform a regulatory flexibility analysis
if a final rule is likely to have a significant economic impact on a
substantial number of small entities and there is a legal requirement
to issue a general notice of proposed rulemaking. Western has
determined that this action does not require a regulatory flexibility
analysis since it is a rulemaking of particular applicability involving
rates or services applicable to public property.
Environmental Compliance
In compliance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321, et seq.); Council on Environmental Quality
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western
has determined that this action is categorically excluded from
preparing 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 clearance of this notice by the
Office of Management and Budget is required.
Small Business Regulatory Enforcement Fairness Act
Western has determined that this rule is exempt from congressional
notification requirements under 5 U.S.C. 801 because the action is a
rulemaking of particular applicability relating to rates or services
and involves matters of procedure.
Submission to the Federal Energy Regulatory Commission
The interim rates herein confirmed, approved, and placed into
effect, together with supporting documents, will be submitted to the
Commission for confirmation and final approval.
Order
In view of the foregoing and under the authority delegated to me, I
confirm and approve on an interim basis, effective July 1, 2006, Rate
Schedules PD-NTS2, and INT-NTS2 for the Parker-Davis Project (PDP) and
the Pacific Northwest-Pacific Southwest Intertie Project, and Rate
Schedules DSW-SD2, DSW-RS2, DSW-FR2, DSW-EI2, DSW-SPR2, and DSW-SUR2,
for the PDP, the Boulder Canyon Project (BCP), the Central Arizona
Project (CAP), and that part of the Colorado River Storage Project
located in the WALC Balancing Authority and Transmission Operations
Area of the Western Area Power Administration. The rate schedules shall
remain in effect on an interim basis pending the Commission's
confirmation and approval of them or substitute rates on a final basis
through June 30, 2011.
Dated: June 13, 2006.
Clay Sell,
Deputy Secretary.
Rate Schedule PD-NTS2; Attachment H-1 to Tariff (Supersedes Rate
Schedule PD-NTS1)
United States Department of Energy, Western Area Power Administration
Network Integration Transmission Service on the Parker-Davis Project
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
In the area served by the Parker-Davis Project (PDP) transmission
facilities.
Applicable
To Network Integration Transmission Service (Network Service)
customers where capacity and energy are supplied to the PDP
transmission system from designated resources, transmitted subject to
the availability of the transmission capacity, and delivered, less
losses, to designated points of delivery on the PDP system specified in
the network service agreement.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by the network
service agreement.
Monthly Rate
Network Service Charge: Each Contractor shall be billed an amount
based on the contractor's load ratio share times one-twelfth of the PDP
annual revenue requirement. The load ratio share will be determined by
the contractor's coincidental peak load averaged with the coincidental
peak loads of the previous 11 months divided by the average PDP system
peak for the same time period.
Revenue Requirement
The projected annual revenue requirement allocated to transmission
for FY 2006 for the PDP is $32,826,345. Based on updated financial and
load data, a recalculated revenue requirement will go into effect on
October 1 of each year during the effective rate schedule period.
Adjustment for Ancillary Services
Network Service is offered under Western's Open Access Transmission
Tariff and contractors are responsible for all ancillary services set
forth in the applicable rate schedules specified in the customer's
network service agreement.
[[Page 36340]]
Adjustment for Losses
Capacity and energy losses incurred in connection with the
transmission and delivery of power and energy under this rate schedule
shall be supplied by the customer in accordance with the network
service agreement.
Modifications
The Desert Southwest Customer Service Region may modify the charges
for Network Service upon written notice to the transmission customer.
Any change to the charges to the transmission customer for Network
Service shall be as set forth in a revision to this rate schedule
promulgated under applicable Federal laws, regulations, and policies,
and made part of the applicable network service agreement.
Rate Schedule INT-NTS2; Schedule H-2 to Tariff (Supersedes Rate
Schedule INT-NTS1)
United States Department of Energy, Western Area Power Administration,
Desert Southwest Customer Service Region
Network Integration Transmission Service on the Pacific Northwest-
Pacific Southwest Intertie Project
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
Within the marketing area serviced by the Pacific Northwest-Pacific
Southwest Intertie Project (Intertie) transmission facilities.
Applicable
To Network Integration Transmission Service (Network Service)
customers where capacity and energy are supplied to the Intertie from
designated resources, transmitted subject to the availability of the
transmission capacity, and delivered, less losses, to designated points
of delivery on the Intertie system specified in the network service
agreement.
Character and Conditions of Service
Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by the network
service agreement.
Monthly Rate
Network Service Charge: Each contractor shall be billed an amount
based on the contractor's load ratio share times one-twelfth of the
Intertie annual revenue requirement. The load ratio share will be
determined by the contractor's coincidental peak load averaged with the
coincidental peak loads of the previous 11 months divided by the
average Intertie system peak for the same time period.
Revenue Requirement
The projected annual revenue requirement allocated to transmission
for FY 2006 for the Intertie is $22,742,569. Based on updated financial
and load data, a recalculated revenue requirement will go into effect
on October 1 of each year during the effective rate schedule period.
Adjustments for Ancillary Services
Network Service is offered under the Open Access Transmission
Tariff and contractors are responsible for all ancillary services set
forth in the applicable rate schedules specified in the customer's
network service agreement.
Adjustments for Losses
Capacity and energy losses incurred in connection with the
transmission and delivery of power and energy under this rate schedule
shall be supplied by the customer in accordance with the network
service agreement.
Modifications
The Desert Southwest Customer Service Region may modify the charges
for Network Service upon written notice to the transmission customer.
Any change to the charges to the transmission customer for Network
Service shall be as set forth in a revision to this rate schedule
promulgated under applicable Federal laws, regulations, and policies
and made part of the applicable network service agreement.
Rate Schedule DSW-SD2; Schedule 1 to Tariff (Supersedes Rate Schedule
DSW-SD1)
United States Department of Energy, Western Area Power Administration,
Desert Southwest Customer Service Region
Scheduling, System Control, and Dispatch Service
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority and Transmission Operations area (BATO).
Applicable
To transactions with entities not taking transmission service in
WALC. For entities taking transmission service from Western in the WALC
BATO, the Scheduling, System Control, and Dispatch Service (Scheduling
Service) charge is included in the transmission rate.
Character of Service
Scheduling Service is required to schedule the movement of power
through, out of, within, or into the WALC BATO.
Formula Rate
The charges for Scheduling Service are to be based on the following
formula rate where the Rate per Tag equals: Annual Capital Cost per Tag
+ Hourly Labor Rate X Average Time to Execute Tag
Rate
The rate charged for the Scheduling Service is $18.55 per tag. This
rate is based on FY 2004 financial and load data, and will be in effect
July 1, 2006, through September 30, 2006. Based on updated financial
and load data, a recalculated rate will go into effect on October 1 of
each year during the effective rate period.
The Desert Southwest Customer Service Region's charge for
Scheduling Service may be modified upon written notice to the customer
and any change to the charges for the service shall be as set forth in
a revision to this rate schedule promulgated under applicable Federal
laws, regulations, and policies and made part of the applicable service
agreement.
Rate Schedule DSW-RS2; Schedule 2 to Tariff (Supersedes Rate Schedule
DSW-RS1)
United States Department of Energy, Western Area Power Administration,
Desert Southwest Customer Service Region
Reactive Supply and Voltage Control From Generation Sources Service
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority and Transmission Operations Area (BATO).
Applicable
To all customers in the WALC BATO taking transmission service under
the
[[Page 36341]]
Open Access Transmission Tariff. The customer must purchase this
service from WALC, unless the entity has a separate generation
agreement to supply Reactive Supply and Voltage Control from Generation
Sources Service (Voltage Support Service) to WALC.
Character of Service
Voltage Support Service is needed to maintain transmission voltages
on all transmission facilities within acceptable limits. To accomplish
this, generation facilities under the control of the WALC BATO are
operated to produce or absorb reactive power.
Formula Rate
The charges for Voltage Support Service are based on the following
formula rate.
[GRAPHIC] [TIFF OMITTED] TN26JN06.000
The revenue requirement for the service is the sum of the service
for each generation project in WALC determined by multiplying the
generation revenue requirement by one minus the power factor for the
supplying plants.
WALC Transmission Reservations are the total firm point-to-point
reservations minus reservations by entities with generation agreements
to supply Voltage Support Service to WALC.
Rate:
The rate to be in effect July 1, 2006, through September 30, 2006,
is:
Monthly: $0.043/kWmonth.
Weekly: 9.92 mills/kWweek.
Daily: 1.42 mills/kWday.
Hourly: 0.059 mills/kWh.
This rate is based on the above formula and on FY 2004 financial
and calendar year 2004 load data, and will be in effect July 1, 2006,
through September 30, 2006. Based on updated financial and load data, a
recalculated rate will go into effect on October 1 of each year during
the effective rate period.
The Desert Southwest Customer Service Region (DSWR) charges for
Voltage Support Service may be modified upon written notice to the
customer. Any change to the charges for Voltage Support Service shall
be as set forth in a revision to this rate schedule promulgated under
applicable Federal laws, regulations, and policies and made part of the
applicable service agreement. DSWR shall charge the customer in
accordance with the rate then in effect.
Rate Schedule DSW-FR2; Schedule 3 to Tariff (Supersedes Rate Schedule
DSW-FR1)
United States Department of Energy, Western Area Power Administration,
Desert Southwest Customer Service Region
Regulation and Frequency Response Service
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority and Transmission Operations Area (BATO).
Applicable
To all customers with standard loads in the WALC BATO taking this
service under the Open Access Transmission Tariff. Customers with non-
conforming loads will be charged differently as stated below. A non-
conforming load is defined as a single plant or site with a regulation
capacity requirement of 5 megawatts (MW) or greater on a recurring
basis and whose capacity requirement is equal to 10 percent or greater
of its average load.
Character of Service
Regulation and Frequency Response Service (Regulation Service) is
necessary to provide for the continuous balancing of resources,
generation, and interchange with load, and for maintaining scheduled
interconnection frequency at sixty cycles per second (60 Hz).
Regulation Service is accomplished by committing on-line generation
whose output is raised or lowered, predominantly through the use of
automatic generating control equipment, as necessary to follow the
moment-by-moment changes in load. The obligation to maintain this
balance between resources and load lies with the transmission provider.
The transmission customer must either purchase this service from the
WALC BATO, or make alternative comparable arrangements satisfactory to
Western to meet its Regulation Service requirements.
Formula Rate
The charges for Regulation Service are based on the following
formula rate.
[GRAPHIC] [TIFF OMITTED] TN26JN06.001
Where:
Revenue requirement for the service is the product of the
generation capacity for the regulation times the capacity rate of
supplying projects, plus any regulation purchases the transmission
provider must make, multiplied by a use factor; and Load requiring the
service is the sum of the loads in the WALC BATO.
Rate
The rate to be in effect July 1, 2006, through September 30, 2006,
is:
0.2049 mills/kWh.
Regulation Service for non-conforming loads, as determined by
Western, must be delineated in a service agreement and charged an
amount which includes the cost to procure the service and the
additional amount required to monitor and supply this service.
This rate is based on the above formula and on FY 2004 financial
and load data, and will be in effect July 1, 2006, through September
30, 2006. Based on updated financial and load data, a recalculated rate
will go into effect on October 1 of each year during the effective rate
period.
The DSWR charges for Regulation Service may be modified upon
written
[[Page 36342]]
notice to the customer. Any change to the charges for regulation shall
be as set forth in a revision to this rate schedule promulgated under
applicable Federal laws, regulations, and policies and made part of the
applicable service agreement. The DSWR shall charge the customer in
accordance with the rate then in effect.
Rate Schedule DSW-EI2; Schedule 4 to Tariff (Supersedes Rate Schedule
DSW-EI1)
United States Department of Energy, Western Area Power Administration,
Desert Southwest Customer Service Region
Energy Imbalance Service
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority and Transmission Operations Area (BATO).
Applicable
To all customers receiving Energy Imbalance Service from the Desert
Southwest Customer Service Region (DSWR) for the WALC.
Character of Service
Provided when a difference occurs between the scheduled and the
actual delivery of energy to a load located within the WALC BATO. The
transmission customer and customers on non-Western transmission systems
within WALC BATO must either obtain this service from WALC, or make
alternative comparable arrangements to satisfy its energy imbalance
service obligation. The transmission customer must either purchase this
service from the WALC BATO, or make alternative comparable arrangements
satisfactory to Western to meets its Energy Imbalance Service
requirements.
Formula Rate
Bandwidth: The WALC has established a deviation bandwidth for on-
peak of plus or minus 1.5 percent of the customer's load with a minimum
of 5 MW either over or under delivery and an off-peak bandwidth of 1.5
percent to a negative 3 percent of a customer's load with a minimum of
2 MW over delivery and 5 MW under delivery.
Within the bandwidth: For Energy Imbalance within the bandwidth for
both on-peak and off-peak, settlement between the customer and Western
will be 100 percent of the Energy Imbalance. In lieu of an energy
settlement, Western, at its discretion, may accept a financial payment
equal to a weighted index price (described below) of the energy.
Outside the bandwidth: For that portion of the customer's energy
imbalance that is outside the bandwidth during on-peak hours, the
settlement is 110 percent of the energy imbalance for under-deliveries
and 90 percent of the energy imbalance for over-deliveries. In lieu of
an energy settlement, Western, at its discretion, may accept a
financial settlement equal to 110 percent of a weighted index price for
under-deliveries and 90 percent of a weighted index price for over-
deliveries.
For that portion of the customer's energy imbalance that is outside
the bandwidth during the off-peak hours, the settlement is 110 percent
of the energy imbalance for under-deliveries and 60 percent of the
energy imbalance for over-deliveries. In lieu of an energy settlement,
Western, at its discretion, may accept a financial settlement equal to
110 percent of a weighted index price for under-deliveries and for
over-deliveries 60 percent of either a weighted index price or a WALC
weighted sales price, whichever is the least. If Western uses a
financial settlement for transactions, the index used to calculate the
settlement will be the Dow Jones Palo Verde average monthly index or an
index identified on the OASIS at the beginning of each fiscal year.
Settlement for the hourly deviations will occur on a monthly basis.
The energy imbalance service compensation may be modified upon
written notice to the customer. Any change to the customer compensation
for energy imbalance service shall be as set forth in a revision to
this schedule promulgated pursuant to applicable Federal laws,
regulations, and policies and made part of the applicable service
agreement. The DSWR shall charge the customer in accordance with the
rate then in effect.
Rate Schedule DSW-SPR2; Schedule 5 to Tariff (Supersedes Rate Schedule
DSW-SPR1)
United States Department of Energy, Western Area Power Administration,
Desert Southwest Customer Service Region
Operating Reserve--Spinning Reserve Service
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority and Transmission Operations Area (BATO).
Applicable
To all customers receiving Spinning Reserve Service from the Desert
Southwest Customer Service Region (DSWR) for the WALC BATO.
Character of the Service
Spinning reserve service (Spinning Service) is needed to serve load
immediately in the event of a system contingency. Spinning Service may
be provided by generating units that are on-line and loaded at less
than maximum output. The transmission customer must either purchase
this service from the Western WALC BATO, or make alternative comparable
arrangements satisfactory to Western to meet its Spinning Service
requirements.
Formula Rate
Spinning Service will not be available from DSWR resources on a
long-term basis. If a customer cannot self-supply or purchase this
service from another provider, Western may obtain the Spinning Service
on a pass-through cost basis at market price plus a charge that covers
the cost of procuring and supplying the service. The transmission
customer will be responsible for the transmission service to get
Spinning Service to the designated point of delivery.
Cost for Spinning Service = market price + cost to procure service.
Rate Schedule DSW-SUR2; Schedule 6 to Tariff (Supersedes Rate Schedule
DSW-SUR2)
United States Department of Energy, Western Area Power Administration,
Desert Southwest Customer Service Region
Operating Reserve--Supplemental Reserve Service
Effective
The first day of the first full billing period beginning on or
after July 1, 2006, through June 30, 2011.
Available
In the area served by the Western Area Lower Colorado (WALC)
Balancing Authority and Transmission Operations Area (BATO).
Applicable
To all customers receiving supplemental reserve service from the
Desert Southwest Customer Service Region (DSWR) for the WALC BATO.
[[Page 36343]]
Character of the Service
Supplemental Reserve Service (Supplemental Service) is needed to
serve load in the event of a system contingency; however, it is not
available immediately to serve load. Supplemental Service may be
provided by generating units that can be synchronized to the system
within 10 minutes and loaded within 30 minutes. The transmission
customer must either purchase this service from the WALC BATO, or make
alternative comparable arrangements satisfactory to Western to meet its
Supplemental Service requirements. The charges for Supplemental Service
are referred to below.
Formula Rate
Supplemental Service will not be available from DSWR resources on a
long-term basis. If a customer cannot self-supply or purchase this
service from another provider, Western may obtain the Supplemental
Service on a pass-through cost basis at market price plus a charge that
covers the cost of procuring and supplying the service. The
transmission customer will be responsible for the transmission service
to get Supplemental Service to the designated point of delivery.
Cost for Supplemental Service = market price + cost to procure
service.
[FR Doc. E6-10000 Filed 6-23-06; 8:45 am]
BILLING CODE 6450-01-P