[Federal Register: January 16, 2009 (Volume 74, Number 11)]
[Notices]
[Page 3013-3015]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ja09-74]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Rate Schedules
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of rate order.
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SUMMARY: Pursuant to Delegation Order Nos. 00-037.00, effective
December 6, 2001, and 00-001.00C, effective January 31, 2007, the
Deputy Secretary has approved and placed into effect on an interim
basis Rate Order No. SWPA-61, which provides the following Integrated
System Rate Schedules:
Rate Schedule P-06A, Wholesale Rates for Hydro Peaking Power.
Rate Schedule NFTS-06A, Wholesale Rates for Non-Federal
Transmission Service.
FOR FURTHER INFORMATION CONTACT: Mr. James K. McDonald, Assistant
Administrator, Office of Corporate Operations, Southwestern Power
Administration, Department of Energy, One West Third Street, Tulsa,
Oklahoma 74103, (918) 595-6690, jim.mcdonald@swpa.gov.
SUPPLEMENTARY INFORMATION: The 2008 Power Repayment Studies indicated
that rates prescribed by Rate Schedules P-06, Wholesale Rates for Hydro
Peaking Power, and NFTS-06, Wholesale Rates for Non-Federal
Transmission Service, as approved in Docket No. EF07-4011-000, for the
period October 1, 2006, through September 30, 2010, are sufficient to
meet repayment criteria and do not require any adjustment. However, it
is necessary to make technical, non-revenue impacting changes to the
terms and conditions of both rates. The Real Power Losses provisions in
rate schedules P-06 and NFTS-06 were revised to specify that all real
power losses associated with deliveries of non-Federal energy
transmitted by Southwestern on behalf of transmission customers must be
scheduled and delivered (self-supplied) to Southwestern by such
customers during the second month after such real power losses were
incurred by Southwestern. Prior to these new provisions, transmission
customers were provided the option to either purchase losses from
Southwestern or elect, on an annual basis, to self-provide their
respective loss energy subject to certain conditions. These new
provisions incorporate comments received by Southwestern during
customer meetings held throughout 2008. As a result of these informal
meetings, it was determined that the revised rate schedule provisions
can provide cost-savings to Southwestern's transmission customers,
operational benefits to Southwestern, and are consistent with Federal
Energy Regulatory Commission (FERC) Order No. 888.
Rate Schedule P-06A applies to wholesale customers purchasing hydro
peaking power and peaking energy from the Integrated System. This rate
schedule is designed for the sale of Federal power and energy. Rate
Schedule NFTS-06A applies to wholesale customers purchasing Non-Federal
Point-to-Point and Network Transmission Service. In developing the
revised real power losses rate schedules provisions, the title of the
P-06 and NFTS-06 rate schedules were changed to P-06A and NFTS-06A
respectively, to reflect the fact that revisions have been made. In
addition to replacing the section entitled ``Rates for Real Power
Losses'' within the rate schedules, minor corrections and modifications
were incorporated to clarify and update any sections of the rate
schedules containing references to real power losses. These changes
will have no impact on the amortization or status of repayment
forecasted in the power repayment studies and will not require rate
changes. Revenues based on current rates remain sufficient to meet
repayment criteria.
The Administrator, Southwestern Power Administration (Southwestern)
has followed Title 10, Part 903, Subpart A of the Code of Federal
Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions,'' in connection with the
rate schedule revisions being proposed. The public was advised by
notice published in the Federal Register (73 FR 63969), October 28,
2008, of proposed rate schedule changes and of the opportunity to
provide written comments for a period of 30 days ending November 28,
2008. Accordingly, several informal meetings were held with customers
and interested parties to discuss the proposed changes. No comments
were received during the period of public participation related to the
proposed rate schedule changes.
Following review of Southwestern's proposal within the Department
of Energy, I approved Rate Order No. SWPA-61 on an interim basis for
the period January 1, 2009, through September 30, 2010, or until
confirmed and approved on a final basis by the Federal Energy
Regulatory Commission.
[[Page 3014]]
Dated: January 8, 2009.
Jeffrey F. Kupfer,
Deputy Secretary.
United States of America, Department of Energy, Deputy Secretary.
In the Matter of: Southwestern Power Administration Integrated System
Rate Schedules; Order Confirming, Approving and Placing Revised Power
Rate Schedules in Effect On an Interim Basis
Rate Order No. SWPA-61
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern
Power Administration (Southwestern) were transferred to and vested in
the Secretary of Energy. By Delegation Order No. 0204-108, effective
December 14, 1983, the Secretary of Energy delegated to the
Administrator of Southwestern the authority to develop power and
transmission rates, delegated to the Deputy Secretary of the Department
of Energy the authority to confirm, approve, and place in effect such
rates on an interim basis and delegated to the Federal Energy
Regulatory Commission the authority to confirm and approve on a final
basis or to disapprove rates developed by the Administrator under the
delegation. Delegation Order No. 0204-108, as amended, was rescinded
and subsequently replaced by Delegation Orders 00-037.00 (December 6,
2001) and 00-001-00C (January 31, 2007). The Deputy Secretary issued
this rate order pursuant to said delegations.
Background
In May 2008, Southwestern Power Administration (Southwestern)
completed its review of the adequacy of the current rate schedules for
the Integrated System and finalized its 2008 Power Repayment Studies
(PRSs). The studies indicated that the proposed rates as shown in Rate
Schedules P-06 and NFTS-06 would meet cost recovery criteria for the
Integrated System projects. The Federal Energy Regulatory Commission
(FERC) confirmation and approval of the following Integrated System
(System) rate schedules was provided in FERC Docket No. EF07-4011-000
(118 FERC ] 62, 162) issued February 27, 2007, for the period October
1, 2006, through September 30, 2010:
Rate Schedule P-06, Wholesale Rates for Hydro Peaking Power.
Rate Schedule NFTS-06, Wholesale Rates for Point-to-Point and
Network Transmission Service.
Rate Schedule EE-06, Wholesale Rate for Excess Energy.
Based on operations under the approved Rate Schedules, the
Administrator, Southwestern, has determined that a revision to the Real
Power Losses provision within existing rate schedules P-06 and NFTS-06
is required. Since the proposed changes to the rate schedules are
associated with Real Power Losses, the net results of the 2008
Integrated System Power Repayment Studies, which was the basis for the
existing rate schedules, will not be altered. The designations of the
aforementioned rate schedules have been revised from P-06 and NFTS-06
to P-06A and NFTS-06A to reflect the fact that revisions have been
made.
Titles 10, Part 903 Subpart A, of the Code of Federal Regulations,
``Procedures for Public Participation in Power and Transmission Rate
Adjustments and Extensions'' (Part 903) have been followed in
connection with the proposed Rate Schedules P-06A and NFTS-06A. An
opportunity for customers and other interested members of the public to
review and comment on the proposed rate schedules was announced by
notice published in the Federal Register October 28, 2008 (73 FR
63969), with written comments due by November 28, 2008. In addition,
Southwestern held informal meetings with customers to discuss proposed
changes and to provide opportunity for input in the development of
these changes. No comments were received during the period of public
participation related to the proposed rate schedule changes.
Discussion
Rate Schedule P-06A applies to wholesale customers purchasing hydro
peaking power and peaking energy from the Integrated System. This rate
schedule is designed for the sale of Federal power and energy. Rate
Schedule NFTS-06A applies to wholesale customers purchasing Non-Federal
Point-to-Point and Network Transmission Service. In addition to
replacing the section entitled ``Rates for Real Power Losses'' within
the rate schedules, minor corrections and modifications were
incorporated to clarify and update any sections of the rate schedules
containing references to real power losses. These changes will have no
impact on the amortization or status of repayment forecasted in the
power repayment studies and will not require rate changes. Revenues
based on current rates remain sufficient to meet repayment criteria.
For the period January 1, 2009, through September 30, 2010,
Southwestern's P-06A and NFTS-06A rate schedules will require that all
real power losses associated with deliveries of non-Federal energy
transmitted by Southwestern must be scheduled and delivered (self-
supplied) to Southwestern by customers during the second month after
such real power losses were incurred by Southwestern. Southwestern will
determine the amount of real power losses associated with non-Federal
energy transmitted on behalf of each customer in the manner specified
in the rate schedules and provide a written schedule setting forth the
delivery rate and total quantity of real power loss energy to be
delivered back to Southwestern. Should a customer fail to return the
total quantity of real power loss energy to Southwestern, according to
the schedule provided during the month in which such loss energy is
due, the customer will be invoiced and obligated to purchase, at the
rate stipulated in the P-06A and NFTS-06A rate schedules, the quantity
of loss energy the customer failed to return to Southwestern.
Availability of Information
Information regarding these rate schedules changes is available for
public review and comment in the offices of Southwestern Power
Administration, One West Third Street, Tulsa, Oklahoma 74103.
Comments and Responses
Southwestern received no comments during the period of public
participation related to the proposed rate schedule changes.
Other Issues
There were no other issues raised during the informal meetings or
during the formal public participation period.
Administrator's Certification
The revised rate schedules will repay all costs of the Integrated
System including amortization of the power investment consistent with
the provisions of Department of Energy Order No. RA 6120.2. In
accordance with Delegation Order Nos. 00-037.00, effective December 6,
2001, and 00-001.00C, effective January 31, 2007, and Section 5 of the
Flood Control Act of 1944, the Administrator has determined that the
proposed Integrated System rate schedules are consistent with
applicable law and the lowest possible rates consistent with sound
business principles.
[[Page 3015]]
Environment
No additional evaluation of the environmental impact of the
proposed rate schedule changes was conducted since no change has been
made to the currently-approved System rates which were determined to
fall within the class of actions that are categorically excluded from
the requirements of preparing either an Environmental Impact Statement
or an Environmental Assessment.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm, approve and place in
effect on an interim basis, effective January 1, 2009, the Southwestern
Integrated System Rate Schedules P-06A and NFTS-06A which shall remain
in effect on an interim basis through September 30, 2010, or until the
FERC confirms and approves the rates on a final basis.
Dated: January 8, 2009.
Jeffrey F. Kupfer,
Deputy Secretary.
[FR Doc. E9-895 Filed 1-15-09; 8:45 am]
BILLING CODE 6450-01-P