80 FR 12819 - Proposed Rate Adjustment for Kerr-Philpott System

DEPARTMENT OF ENERGY
Southeastern Power Administration

Federal Register Volume 80, Issue 47 (March 11, 2015)

Page Range		12819-12820
FR Document		2015-05534

Southeastern will host a public information and comment forum to discuss its proposal to replace existing schedules of rates and charges applicable for the sale of power from the Kerr-Philpott System effective for a five-year period from October 1, 2015, through September 30, 2020. Southeastern will evaluate all comments received in this process.

Federal Register, Volume 80 Issue 47 (Wednesday, March 11, 2015)

[Federal Register Volume 80, Number 47 (Wednesday, March 11, 2015)]
[Notices]
[Pages 12819-12820]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05534]



[[Page 12819]]

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DEPARTMENT OF ENERGY

Southeastern Power Administration


Proposed Rate Adjustment for Kerr-Philpott System

AGENCY: Southeastern Power Administration (Southeastern), DOE.

ACTION: Notice of public hearing and opportunities for review and 
comment.

-----------------------------------------------------------------------

SUMMARY: Southeastern will host a public information and comment forum 
to discuss its proposal to replace existing schedules of rates and 
charges applicable for the sale of power from the Kerr-Philpott System 
effective for a five-year period from October 1, 2015, through 
September 30, 2020. Southeastern will evaluate all comments received in 
this process.

DATES: Written comments are due on or before June 9, 2015. A public 
information and comment forum will be held in Boydton, Virginia, at 
10:00 a.m. on April 21, 2015. Persons desiring to speak at the forum 
should notify Southeastern at least seven (7) days before the forum is 
scheduled so that a list of forum participants can be prepared. Others 
present at the forum may speak if time permits. Persons desiring to 
attend the forum should notify Southeastern at least seven (7) days 
before the forum is scheduled. Unless Southeastern has been notified by 
the close of business on April 14, 2015, that at least one person 
intends to be present at the forum, the forum may be canceled.

ADDRESSES: Written comments should be submitted to: Kenneth E. Legg, 
Administrator, Southeastern Power Administration, Department of Energy, 
Elberton, GA 30635. The public comment forum will meet at the John H. 
Kerr Visitor Assistance Center, 1930 Mays Chapel Road, Boydton, 
Virginia, 23917; Phone: (434) 738-6633.

FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs III, Assistant 
Administrator, Finance and Marketing, Southeastern Power 
Administration, Department of Energy, 1166 Athens Tech Road, Elberton, 
GA 30635-6711, (706) 213-3800; Email: [email protected].

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission 
(FERC), by order issued March 11, 2011, 134 FERC ] 62,233, confirmed 
and approved Rate Schedules VA-1-B, VA-2-B, VA-3-B, VA-4-B, CP&L-1-B, 
CP&L-2-B, CP&L-3-B, CP&L-4-B, AP-1-B, AP-2-B, AP-3-B, AP-4-B, NC-1-B, 
and Replacement-2-A, for the period October 1, 2010, through September 
30, 2015. A repayment study prepared in January of 2015 showed that 
existing rates are adequate to recover all costs required by present 
repayment criteria. However, approval of the existing rate schedules 
expires September 30, 2015.
    The existing rate schedules include two true-up mechanisms. First, 
the base capacity and base energy charge are subject to annual 
adjustment on April 1 of each year based on transfers to plant in 
service for the preceding fiscal year. The adjustment is for each 
increase of $1,000,000 to plant in service and increase of $0.013 per 
kilowatt per month added to the capacity charge and 0.052 mills per 
kilowatt-hour added to the energy charge. Second, the rates include a 
true-up of the capacity and energy rates based on the variance of the 
actual net revenue available for repayment from the planned net revenue 
available for repayment. The adjustment is for every $100,000 under-
recovery of the planned net revenue available for repayment, the base 
capacity charge is increased by $0.02 per kilowatt per month, up to a 
maximum of $0.75 per kilowatt per month, and the base energy charge is 
increased by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt-hour. For every $100,000 over-recovery of the planned net 
revenue available for repayment, the base capacity charge is reduced by 
$0.02 per kilowatt per month, up to a maximum of $0.75 per kilowatt per 
month, and the base energy charge is reduced by 0.10 mills per 
kilowatt-hour, up to a maximum of 3.0 mills per kilowatt-hour.
    The initial base capacity charge for the current rate schedules was 
$3.65 per kilowatt per month. The initial base energy charge was 14.63 
mills per kilowatt-hour. As of April 1, 2015, the base capacity charge 
has increased to $4.30 per kilowatt per month and the base energy 
charge has increased to 17.23 mills per kilowatt-hour because of 
transfers to plant in service. The true-up adjustment for net revenue 
available for repayment reduced the April 1, 2015 capacity charge to 
$4.18 per kilowatt per month and the energy charge to 16.63 mills per 
kilowatt-hour. The existing rates are adequate to meet repayment 
criteria. However, implementation of the true-ups incorporated in the 
rate schedules has proven to be difficult for Southeastern staff and 
customers to understand, and the rates have proven to be volatile. 
Southeastern is proposing to modify the true-up in an effort to 
simplify the process and stabilize the rates.

 Proposed Unit Rates

    The initial base rates for capacity and energy will be as follows:

Capacity: $3.97 per kW per month
Energy: 16.04 mills per kWh

    Southeastern proposes to eliminate the true-up mechanism for 
transfers to plant in service. The rates are based on a repayment study 
that projects the Kerr-Philpott System are expected to produce the 
following net revenue available for repayment (rounded to nearest 
$10,000):

------------------------------------------------------------------------
                                             Estimated
                                            annual net    Cumulative net
               Fiscal year                    revenue         revenue
                                           available for   available for
                                             repayment       repayment
------------------------------------------------------------------------
2015....................................      $2,130,000      $2,130,000
2016....................................       2,120,000       4,250,000
2017....................................       1,830,000       6,080,000
2018....................................       1,640,000       7,720,000
2019....................................       1,640,000       9,360,000
2020....................................       1,720,000      11,080,000
2021....................................       1,800,000      12,880,000
2022....................................       1,870,000      14,750,000
2023....................................       1,950,000      16,700,000
2024....................................       2,040,000      18,740,000
------------------------------------------------------------------------

    The proposed rates include a true-up of the capacity and energy 
rates based on the cumulative net revenue available for repayment from 
the table above. For every $100,000 under-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
increase the base capacity charge by $0.02 per kilowatt per month, up 
to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt-hour. For every $100,000 over-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will reduce the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and reduce the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt-hour, to be implemented April 1 of the next fiscal 
year.
    The initial base rate is a revenue reduction of $1,301,000 
annually, or about six percent (6%) under the base rates currently in 
effect.
    Southeastern is proposing the following rate schedules to be 
effective for the period from October 1, 2015, through September 30, 
2020. The capacity charge and energy charge will be the same for all 
rate schedules. These rate schedules are necessary to accommodate the 
transmission and scheduling arrangements that are available in the 
Kerr-Philpott System.

[[Page 12820]]

Rate Schedule VA-1-C

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted and scheduled pursuant to 
contracts between the Government, Virginia Electric and Power Company 
(also known as Dominion Virginia Power [DVP]), and DVP's Transmission 
Operator, currently PJM Interconnection, LLC (PJM).

Rate Schedule VA-2-C

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted pursuant to contracts between 
the Government, DVP, and PJM. The customer is responsible for providing 
a scheduling arrangement with the Government.

Rate Schedule VA-3-C

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be scheduled pursuant to contracts between 
the Government, DVP, and PJM. The customer is responsible for providing 
a transmission arrangement.

Rate Schedule VA-4-C

    Available to public bodies and cooperatives in the service area of 
DVP and PJM. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule CP&L-1-C

    Available to public bodies and cooperatives in North Carolina to 
whom power may be transmitted and scheduled pursuant to contracts 
between the Government and Duke Energy Progress (as successor of 
Carolina Power & Light).

Rate Schedule CP&L-2-C

    Available to public bodies and cooperatives in North Carolina to 
whom power may be transmitted pursuant to contracts between the 
Government and Duke Energy Progress (as successor of Carolina Power & 
Light). The customer is responsible for providing a scheduling 
arrangement with the Government.

Rate Schedule CP&L-3-C

    Available to public bodies and cooperatives in North Carolina to 
whom power may be scheduled pursuant to contracts between the 
Government and Duke Energy Progress (as successor of Carolina Power & 
Light). The customer is responsible for providing a transmission 
arrangement.

Rate Schedule CP&L-4-C

    Available to public bodies and cooperatives in the service area of 
Duke Energy Progress. The customer is responsible for providing a 
scheduling arrangement with the Government and for providing a 
transmission arrangement.

Rate Schedule AP-1-C

    Available to public bodies and cooperatives in Virginia to whom 
power may be transmitted and scheduled pursuant to contracts between 
the Government, American Electric Power Service Corporation and the 
American Electric Power Service Corporation's Transmission Operator, 
currently and the PJM Interconnection, LLC (PJM).

Rate Schedule AP-2-C

    Available to public bodies and cooperatives in Virginia to whom 
power may be transmitted pursuant to contracts between the Government, 
American Electric Power Service Corporation, and PJM. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule AP-3-C

    Available to public bodies and cooperatives in Virginia to whom 
power may be scheduled pursuant to contracts between the Government, 
American Electric Power Service Corporation, and PJM. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule AP-4-C

    Available to public bodies and cooperatives in the service area of 
American Electric Power Service Corporation and PJM. The customer is 
responsible for providing a scheduling arrangement with the Government 
and for providing a transmission arrangement.

Rate Schedule NC-1-C

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted pursuant to a contract 
between the Government and PJM and scheduled pursuant to a contract 
between the Government and Duke Energy Progress (as successor of 
Carolina Power & Light).

Rate Schedule Replacement-2-B

    This rate schedule shall be applicable to the sale energy purchased 
to meet contract minimum energy and sold under appropriate contracts 
between the Government and the Customer.
    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, GA 30635. Proposed Rate Schedules VA-
1-C, VA-2-C, VA-3-C, VA-4-C, CP&L-1-C, CP&L-2-C, CP&L-3-C, CP&L-4-C, 
AP-1-C, AP-2-C, AP-3-C, AP-4-C, NC-1-B, and Replacement-2-B are also 
available.

    Issued at Elberton, Georgia, on February 26, 2015.
Kenneth E. Legg,
Administrator.
[FR Doc. 2015-05534 Filed 3-10-15; 8:45 am]
 BILLING CODE 6450-01-P

12820 Federal Register / Vol. 80, No. 47 / Wednesday, March 11, 2015 / Notices

Rate Schedule VA–1–C Rate Schedule CP&L–4–C Proposed Rate Schedules VA–1–C, VA–
Available to public bodies and 2–C, VA–3–C, VA–4–C, CP&L–1–C,
Available to public bodies and
cooperatives in the service area of Duke CP&L–2–C, CP&L–3–C, CP&L–4–C, AP–
cooperatives in Virginia and North
Energy Progress. The customer is 1–C, AP–2–C, AP–3–C, AP–4–C, NC–1–
Carolina to whom power may be
responsible for providing a scheduling B, and Replacement–2–B are also
transmitted and scheduled pursuant to
arrangement with the Government and available.
contracts between the Government,
Virginia Electric and Power Company for providing a transmission Issued at Elberton, Georgia, on February
(also known as Dominion Virginia arrangement. 26, 2015.
Power [DVP]), and DVP’s Transmission Kenneth E. Legg,
Rate Schedule AP–1–C
Operator, currently PJM Administrator.
Interconnection, LLC (PJM). Available to public bodies and [FR Doc. 2015–05534 Filed 3–10–15; 8:45 am]
cooperatives in Virginia to whom power
BILLING CODE 6450–01–P
Rate Schedule VA–2–C may be transmitted and scheduled
Available to public bodies and pursuant to contracts between the
cooperatives in Virginia and North Government, American Electric Power DEPARTMENT OF ENERGY
Carolina to whom power may be Service Corporation and the American
transmitted pursuant to contracts Electric Power Service Corporation’s Hydrogen and Fuel Cell Technical
between the Government, DVP, and Transmission Operator, currently and Advisory Committee (HTAC); Meeting
PJM. The customer is responsible for the PJM Interconnection, LLC (PJM).
AGENCY: Office of Energy Efficiency and
providing a scheduling arrangement Rate Schedule AP–2–C Renewable Energy, Department of
with the Government. Energy.
Available to public bodies and
Rate Schedule VA–3–C cooperatives in Virginia to whom power ACTION: Notice of open meeting.
Available to public bodies and may be transmitted pursuant to
contracts between the Government, SUMMARY: This notice announces an
cooperatives in Virginia and North open meeting of the Hydrogen and Fuel
Carolina to whom power may be American Electric Power Service
Corporation, and PJM. The customer is Cell Technical Advisory Committee
scheduled pursuant to contracts (HTAC). The Federal Advisory
between the Government, DVP, and responsible for providing a scheduling
arrangement with the Government. Committee Act, Public Law 92–463, 86
PJM. The customer is responsible for Stat. 770, requires notice of the meeting
providing a transmission arrangement. Rate Schedule AP–3–C be announced in the Federal Register.
Rate Schedule VA–4–C Available to public bodies and DATES:
cooperatives in Virginia to whom power Tuesday, April 21, 2015 8:30 a.m.–
Available to public bodies and may be scheduled pursuant to contracts 5:15 p.m.
cooperatives in the service area of DVP between the Government, American Wednesday, April 22, 2015 8:00 a.m.–
and PJM. The customer is responsible Electric Power Service Corporation, and 12:00 p.m.
for providing a scheduling arrangement PJM. The customer is responsible for ADDRESSES: Westin Crystal City Hotel,
with the Government and for providing providing a transmission arrangement. 1800 Jefferson Davis Highway,
a transmission arrangement.
Arlington, VA, 22202.
Rate Schedule AP–4–C
Rate Schedule CP&L–1–C FOR FURTHER INFORMATION CONTACT:
Available to public bodies and Email: HTAC@nrel.gov or at the mailing
Available to public bodies and cooperatives in the service area of
cooperatives in North Carolina to whom address: James Alkire, Deputy
American Electric Power Service Designated Federal Officer, U.S.
power may be transmitted and Corporation and PJM. The customer is
scheduled pursuant to contracts Department of Energy, Office of Energy
responsible for providing a scheduling Efficiency and Renewable Energy, 15013
between the Government and Duke arrangement with the Government and
Energy Progress (as successor of Denver West Parkway, Golden, CO
for providing a transmission 80401
Carolina Power & Light). arrangement.
SUPPLEMENTARY INFORMATION:
Rate Schedule CP&L–2–C Rate Schedule NC–1–C Purpose of the Committee: The
Available to public bodies and Available to public bodies and Hydrogen and Fuel Cell Technical
cooperatives in North Carolina to whom cooperatives in Virginia and North Advisory Committee (HTAC) was
power may be transmitted pursuant to Carolina to whom power may be established under section 807 of the
contracts between the Government and transmitted pursuant to a contract Energy Policy Act of 2005 (EPACT),
Duke Energy Progress (as successor of between the Government and PJM and Public Law 109–58; 119 Stat. 849.
Carolina Power & Light). The customer scheduled pursuant to a contract Purpose of the Meeting: To provide
is responsible for providing a between the Government and Duke advice and recommendations to the
scheduling arrangement with the Energy Progress (as successor of Secretary of Energy on the program
Government. Carolina Power & Light). authorized by Title VIII of EPACT.
Tentative Agenda: (updates will be
Rate Schedule CP&L–3–C Rate Schedule Replacement–2–B posted on the web at: http://
Available to public bodies and This rate schedule shall be applicable hydrogen.energy.gov/advisory_
Rmajette on DSK2VPTVN1PROD with NOTICES

cooperatives in North Carolina to whom to the sale energy purchased to meet htac.html).
power may be scheduled pursuant to contract minimum energy and sold • HTAC Business (including public
contracts between the Government and under appropriate contracts between the comment period)
Duke Energy Progress (as successor of Government and the Customer. • DOE Leadership Updates
Carolina Power & Light). The customer The referenced repayment studies are • Program and Budget Updates
is responsible for providing a available for examination at 1166 • Updates from Government and
transmission arrangement. Athens Tech Road, Elberton, GA 30635. Industry

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Document Created: 2015-12-18 11:58:46
Document Modified: 2015-12-18 11:58:46

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of public hearing and opportunities for review and comment.
Dates		Written comments are due on or before June 9, 2015. A public information and comment forum will be held in Boydton, Virginia, at 10:00 a.m. on April 21, 2015. Persons desiring to speak at the forum should notify Southeastern at least seven (7) days before the forum is scheduled so that a list of forum participants can be prepared. Others present at the forum may speak if time permits. Persons desiring to attend the forum should notify Southeastern at least seven (7) days before the forum is scheduled. Unless Southeastern has been notified by the close of business on April 14, 2015, that at least one person intends to be present at the forum, the forum may be canceled.
Contact		Virgil G. Hobbs III, Assistant Administrator, Finance and Marketing, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, GA 30635-6711, (706) 213-3800; Email: [email protected]
FR Citation		80 FR 12819

80 FR 12819 - Proposed Rate Adjustment for Kerr-Philpott System

DEPARTMENT OF ENERGYSoutheastern Power Administration

Federal Register Volume 80, Issue 47 (March 11, 2015)

DEPARTMENT OF ENERGY
Southeastern Power Administration