80 FR 30451 - Cumberland System of Projects
DEPARTMENT OF ENERGY
Southeastern Power Administration Federal Register Volume 80, Issue 102 (May 28, 2015)
Southeastern Power Administration
Federal Register Volume 80, Issue 102 (May 28, 2015)
| Page Range | 30451-30452 | |
| FR Document | 2015-12888 |
[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)] [Notices] [Pages 30451-30452] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12888] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Southeastern Power Administration Cumberland System of Projects AGENCY: Southeastern Power Administration, DOE. ACTION: Notice of proposed rates, public forum, and opportunities for public review and comment. ----------------------------------------------------------------------- SUMMARY: Southeastern Power Administration (Southeastern) proposes to revise existing schedules of rates and charges applicable to the sale of power from the Cumberland System of Projects effective for a one- year period, October 1, 2015, through September 30, 2016. Interested persons may review the rates and supporting studies and submit written comments. Southeastern will evaluate all comments received in this process. DATES: Written comments are due on or before August 26, 2015. A public information and comment forum will be held at 2:00 p.m., on June 30, 2015. Persons desiring to attend the forum should notify Southeastern at least seven (7) days before the scheduled forum date. Persons desiring to speak at the forum should notify Southeastern at least three (3) days before the scheduled forum date, so that a list of forum participants can be prepared. Others may speak if time permits. ADDRESSES: The forum will be held at: The Inn at Opryland, 2401 Music Valley Drive, Nashville, TN 37214-1002. Written comments should be submitted to: Administrator, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, GA 30635-6711. FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs III, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, GA 30635-6711, (706) 213-3800. SUPPLEMENTARY INFORMATION: Background of Existing Rates: The existing schedules of rates and charges applicable to the sale of power from the Cumberland System of Projects are effective through September 30, 2015. On December 22, 2011, the Federal Energy Regulatory Commission (FERC) confirmed and approved on a final basis, Wholesale Power Rate Schedules CBR-1-H, CSI- 1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3 applicable to Cumberland System of Projects power for a period ending September 30, 2013 (137 FERC ] 62,249). On July 10, 2013, the Deputy Secretary approved an extension of the rate schedules to September 30, 2015 (78 FR 42764). Operational Impact of Dam Safety Issues: In February 2007, the U.S. Army Corps of Engineers (Corps) lowered pool levels at the Wolf Creek and Center Hill Projects to reduce the risk of imminent failure of the dams due to seepage issues. At that time the Corps also began the process of mitigating the seepage issues at the Wolf Creek and Center Hill Projects. Under normal pool levels, the marketing policy for the Cumberland System provides peaking capacity, along with 1500 or 1800 hours of energy annually with each kilowatt of capacity, to customers outside the Tennessee Valley Authority (TVA) transmission system. All remaining energy is scheduled by TVA for the benefit of customers inside the TVA system. As a consequence of lowered pool levels due to dam repairs, Southeastern was not able to provide peaking capacity and firm energy to the outside customers due to operational restrictions. Southeastern implemented an Interim Operating Plan for the Cumberland System to provide these customers with energy that did not include capacity. In March 2014, the Corps lifted operating restrictions on the Wolf Creek Project. The operating restrictions on the Center Hill Project remain in effect. As a consequence, Southeastern implemented a Revised Interim Operating Plan that provides reduced capacity and schedulable energy to the outside customers. [[Page 30452]] Repayment Study: Existing rate schedules are predicated upon an August 2011 repayment study and other supporting data contained in FERC docket number EF11-13-000. The annual revenue requirement in this study is $59,600,000. An updated repayment study, dated January 2015, indicates rates are not adequate to recover cost increases that have been identified and therefore do not meet repayment criteria. The additional costs are due to numerous factors. Corps Operation & Maintenance expenses have exceeded estimates and current rate schedules did not include costs associated with the dam safety repairs of the Wolf Creek and Center Hill Projects. The dam repair costs, after the application of the Dam Safety Act (Water Resources Development Act of 1986 section 1203), are a combined $83,200,000. The Corps has also provided Southeastern with an updated plan of major replacements for the Cumberland System with the total cost of these planned replacements at $868,000,000. Also, TVA notified Southeastern on March 5, 2015 they will charge $1,009,850 per month for delivery of capacity and energy to the outside TVA customers. A revised repayment study demonstrates that a revenue increase to $78,500,000 per year will meet repayment criteria. The increase in the annual revenue requirement is $18,900,000 per year, or about 32 percent. Applicability of the Dam Safety Act: Under section 1203 of the Water Resources Development Act of 1986, otherwise known as the Dam Safety Act, Congress capped the percentage of dam repair costs that may be assigned to project purposes (such as hydropower) at 15 percent. This cap applies to dam modification costs, ``the cause of which results from new hydrologic or seismic data or changes in the state-of- the-art design or construction criteria deemed necessary for safety purposes''. 33 U.S.C. 467n(a). When applicable, the Dam Safety Act requires that dam safety repair costs be recovered within thirty years of completion of the work. If the Dam Safety Act is not applied, 100 percent of all costs are assigned to project purposes for cost recovery but the thirty-year cost recovery requirement does not attach. Southeastern continues to discuss, analyze and seek guidance on the issue from other relevant agencies. Proposed Rates: Southeastern is proposing three rate scenarios per rate schedule. All of the rate scenarios have an annual revenue requirement of $78,500,000. This annual revenue requirement was calculated using the lower bound of possible costs associated with the Wolf Creek and Center Hill Dam repairs: 15 percent assigned to project purposes and recovered within thirty years of completion, an amount that may be adjusted upward pending final determination of the Dam Safety Act's applicability. The first rate scenario includes the rates necessary to recover costs under the Revised Interim Operating Plan. Under this scenario, the capacity rate at the TVA border is $2.28 per kilowatt per month and the energy charge is 14.79 mills per kilowatt-hour. The outside customers would pay their portion of the transmission credit provided TVA for delivery of capacity and energy to neighboring system interconnection points, as agreed by contract between Southeastern and TVA. This rate would remain in effect under the Revised Interim Operating Plan. The second rate scenario would recover cost from capacity and energy. The revenue requirement under this alternative would be $78,500,000 per year. This scenario would be in effect if Southeastern changes the Revised Interim Operating Plan. The third rate scenario is based on the original Cumberland Marketing Policy. All costs are recovered from capacity and excess energy. The rates under this alternative would be as follows: Cumberland System Rates Third Scenario--Return to Original Marketing Policy Inside TVA Preference Customers Capacity and Base Energy: $3.733 per kW/Month Additional Energy: 13.914 mills per kWh Transmission: Pass-through Outside TVA Preference Customers (Excluding Customers served through Carolina Power & Light Company or East Kentucky Power Cooperative) Capacity and Base Energy: $3.733 per kW/Month Additional Energy: 13.914 mills per kWh Transmission: Monthly TVA Transmission Charge divided by 545,000 Customers Served Through Carolina Power & Light Company Capacity and Base Energy: $4.249 per kW/Month TVA Transmission: TVA rate at border as computed above, adjusted for DEP delivery. DEP Transmission: $1.546 per kW/Month (As of 2/1/2015 and provided for illustrative purposes) East Kentucky Power Cooperative: Capacity: $1.994 per kW/Month Energy: 13.914 mills per kWh These rates would go into effect once the Corps lifts the restrictions on the operation of the Wolf Creek and Center Hill Projects and the Revised Interim Operating Plan and Southeastern returns to normal operations. The referenced repayment studies are available for examination at 1166 Athens Tech Road, Elberton, Georgia 30635-6711. The Proposed Rate Schedules CBR-1-I, CSI-1-I, CEK-1-I, CM-1-I, CC-1-J, CK-1-I, CTV-1-I, CTVI-1-B, and Replacement-3 are also available. Dated: May 20, 2015. Kenneth E. Legg, Administrator. [FR Doc. 2015-12888 Filed 5-27-15; 8:45 am] BILLING CODE 6450-01-P
![Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices 30451
DEPARTMENT OF ENERGY ‘‘eFiling’’ link at http://www.ferc.gov. Drive, Nashville, TN 37214–1002.
Persons unable to file electronically Written comments should be submitted
Federal Energy Regulatory should submit an original and 5 copies to: Administrator, Southeastern Power
Commission of the protest or intervention to the Administration, Department of Energy,
[Docket No. EL15–66–000] Federal Energy Regulatory Commission, 1166 Athens Tech Road, Elberton, GA
888 First Street NE., Washington, DC 30635–6711.
Southern Company Services, Inc.; 20426. FOR FURTHER INFORMATION CONTACT:
KCP&L Greater Missouri Operations This filing is accessible on-line at
Virgil G. Hobbs III, Southeastern Power
Company; The Empire District Electric http://www.ferc.gov, using the
Administration, Department of Energy,
Company; Associated Electric ‘‘eLibrary’’ link and is available for
1166 Athens Tech Road, Elberton, GA
Cooperative, Inc.; v. Midcontinent electronic review in the Commission’s
30635–6711, (706) 213–3800.
Independent System Operator, Inc.; Public Reference Room in Washington,
Notice of Complaint DC. There is an ‘‘eSubscription’’ link on SUPPLEMENTARY INFORMATION:
the Web site that enables subscribers to Background of Existing Rates: The
Take notice that on May 20, 2015, receive email notification when a existing schedules of rates and charges
pursuant to sections 309, 205, and 206 document is added to a subscribed applicable to the sale of power from the
of the Federal Power Act (FPA), 16 docket(s). For assistance with any FERC Cumberland System of Projects are
U.S.C. 824(e), 824(d), and 825(h) and Online service, please email effective through September 30, 2015.
Rule 206 of the Federal Energy FERCOnlineSupport@ferc.gov, or call On December 22, 2011, the Federal
Regulatory Commission’s (Commission) (866) 208–3676 (toll free). For TTY, call Energy Regulatory Commission (FERC)
Rules of Practice and Procedure, 18 CFR (202) 502–8659. confirmed and approved on a final
385.206, Southern Company Services, Comment Date: 5:00 p.m. Eastern basis, Wholesale Power Rate Schedules
Inc., as agent for Alabama Power Time on June 9, 2015. CBR–1–H, CSI–1–H, CEK–1–H, CM–1–
Company, Georgia Power Company, Dated: May 21, 2015. H, CC–1–I, CK–1–H, CTV–1–H, CTVI–
Gulf Power Company, Mississippi Kimberly D. Bose, 1–A, and Replacement-3 applicable to
Power Company, and Southern Power Cumberland System of Projects power
Secretary.
Company (Southern Companies), for a period ending September 30, 2013
[FR Doc. 2015–12862 Filed 5–27–15; 8:45 am]
KCP&L Greater Missouri Operations (137 FERC ¶ 62,249). On July 10, 2013,
Company, The Empire District Electric BILLING CODE 6717–01–P
the Deputy Secretary approved an
Company, and Associated Electric extension of the rate schedules to
Cooperative, Inc. (collectively, September 30, 2015 (78 FR 42764).
Complainants), filed a formal complaint DEPARTMENT OF ENERGY
Operational Impact of Dam Safety
against Midcontinent Independent Southeastern Power Administration Issues: In February 2007, the U.S. Army
System Operator, Inc., as agent and tariff
Corps of Engineers (Corps) lowered pool
administrator of the MISO Open-Access Cumberland System of Projects levels at the Wolf Creek and Center Hill
Transmission Tariff (MISO or
AGENCY: Southeastern Power Projects to reduce the risk of imminent
Respondent), alleging that: (1)
Administration, DOE. failure of the dams due to seepage
Respondent has levied unlawful charges
ACTION: Notice of proposed rates, public issues. At that time the Corps also began
upon Complainants in violation of
forum, and opportunities for public the process of mitigating the seepage
section 205 of the FPA, and; (2)
review and comment. issues at the Wolf Creek and Center Hill
Respondent’s rates for transmission
service are unjust, unreasonable, unduly Projects. Under normal pool levels, the
SUMMARY: Southeastern Power marketing policy for the Cumberland
discriminatory and preferential and in
Administration (Southeastern) proposes System provides peaking capacity, along
violation of established precedent under
to revise existing schedules of rates and with 1500 or 1800 hours of energy
FPA sections 205 and 206.
The Complainants certify that a copy charges applicable to the sale of power annually with each kilowatt of capacity,
of the complaint has been served on the from the Cumberland System of Projects to customers outside the Tennessee
Respondent. effective for a one-year period, October Valley Authority (TVA) transmission
Any person desiring to intervene or to 1, 2015, through September 30, 2016. system. All remaining energy is
protest this filing must file in Interested persons may review the rates scheduled by TVA for the benefit of
accordance with Rules 211 and 214 of and supporting studies and submit customers inside the TVA system. As a
the Commission’s Rules of Practice and written comments. Southeastern will consequence of lowered pool levels due
Procedure (18 CFR 385.211, 385.214). evaluate all comments received in this to dam repairs, Southeastern was not
Protests will be considered by the process. able to provide peaking capacity and
Commission in determining the DATES: Written comments are due on or firm energy to the outside customers
appropriate action to be taken, but will before August 26, 2015. A public due to operational restrictions.
not serve to make protestants parties to information and comment forum will be Southeastern implemented an Interim
the proceeding. Any person wishing to held at 2:00 p.m., on June 30, 2015. Operating Plan for the Cumberland
become a party must file a notice of Persons desiring to attend the forum System to provide these customers with
intervention or motion to intervene, as should notify Southeastern at least energy that did not include capacity.
appropriate. The Respondent’s answer seven (7) days before the scheduled In March 2014, the Corps lifted
asabaliauskas on DSK5VPTVN1PROD with NOTICES
and all interventions, or protests must forum date. Persons desiring to speak at operating restrictions on the Wolf Creek
be filed on or before the comment date. the forum should notify Southeastern at Project. The operating restrictions on
The Respondent’s answer, motions to least three (3) days before the scheduled the Center Hill Project remain in effect.
intervene, and protests must be served forum date, so that a list of forum As a consequence, Southeastern
on the Complainants. participants can be prepared. Others implemented a Revised Interim
The Commission encourages may speak if time permits. Operating Plan that provides reduced
electronic submission of protests and ADDRESSES: The forum will be held at: capacity and schedulable energy to the
interventions in lieu of paper using the The Inn at Opryland, 2401 Music Valley outside customers.
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![30452 Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices
Repayment Study: Existing rate lower bound of possible costs associated (As of 2/1/2015 and provided for
schedules are predicated upon an with the Wolf Creek and Center Hill illustrative purposes)
August 2011 repayment study and other Dam repairs: 15 percent assigned to
East Kentucky Power Cooperative:
supporting data contained in FERC project purposes and recovered within
docket number EF11–13–000. The thirty years of completion, an amount Capacity: $1.994 per kW/Month
annual revenue requirement in this that may be adjusted upward pending Energy: 13.914 mills per kWh
study is $59,600,000. An updated final determination of the Dam Safety These rates would go into effect once
repayment study, dated January 2015, Act’s applicability. the Corps lifts the restrictions on the
indicates rates are not adequate to The first rate scenario includes the operation of the Wolf Creek and Center
recover cost increases that have been rates necessary to recover costs under Hill Projects and the Revised Interim
identified and therefore do not meet the Revised Interim Operating Plan. Operating Plan and Southeastern
repayment criteria. The additional costs Under this scenario, the capacity rate at returns to normal operations.
are due to numerous factors. Corps the TVA border is $2.28 per kilowatt per The referenced repayment studies are
Operation & Maintenance expenses have month and the energy charge is 14.79 available for examination at 1166
exceeded estimates and current rate mills per kilowatt-hour. The outside Athens Tech Road, Elberton, Georgia
schedules did not include costs customers would pay their portion of 30635–6711. The Proposed Rate
associated with the dam safety repairs of the transmission credit provided TVA Schedules CBR–1–I, CSI–1–I, CEK–1–I,
the Wolf Creek and Center Hill Projects. for delivery of capacity and energy to CM–1–I, CC–1–J, CK–1–I, CTV–1–I,
The dam repair costs, after the neighboring system interconnection CTVI–1–B, and Replacement-3 are also
application of the Dam Safety Act points, as agreed by contract between available.
(Water Resources Development Act of Southeastern and TVA. This rate would Dated: May 20, 2015.
1986 section 1203), are a combined remain in effect under the Revised Kenneth E. Legg,
$83,200,000. The Corps has also Interim Operating Plan.
provided Southeastern with an updated Administrator.
The second rate scenario would
plan of major replacements for the [FR Doc. 2015–12888 Filed 5–27–15; 8:45 am]
recover cost from capacity and energy.
Cumberland System with the total cost The revenue requirement under this BILLING CODE 6450–01–P
of these planned replacements at alternative would be $78,500,000 per
$868,000,000. Also, TVA notified year. This scenario would be in effect if
Southeastern on March 5, 2015 they will Southeastern changes the Revised ENVIRONMENTAL PROTECTION
charge $1,009,850 per month for Interim Operating Plan. AGENCY
delivery of capacity and energy to the The third rate scenario is based on the
outside TVA customers. A revised original Cumberland Marketing Policy. [EPA–HQ–OECA–2014–0040; FRL–9928–
repayment study demonstrates that a All costs are recovered from capacity 41–OEI]
revenue increase to $78,500,000 per and excess energy. The rates under this
year will meet repayment criteria. The alternative would be as follows: Information Collection Request
increase in the annual revenue Submitted to OMB for Review and
requirement is $18,900,000 per year, or Cumberland System Rates Approval; Comment Request; NSPS
about 32 percent. Third Scenario—Return to Original for Hot Mix Asphalt Facilities
Applicability of the Dam Safety Act: (Renewal)
Marketing Policy
Under section 1203 of the Water
Resources Development Act of 1986, Inside TVA Preference Customers AGENCY: Environmental Protection
otherwise known as the Dam Safety Act, Agency (EPA).
Capacity and Base Energy: $3.733 per
Congress capped the percentage of dam ACTION: Notice.
kW/Month
repair costs that may be assigned to Additional Energy: 13.914 mills per
project purposes (such as hydropower) SUMMARY: The Environmental Protection
kWh Agency has submitted an information
at 15 percent. This cap applies to dam
Transmission: Pass-through collection request (ICR), ‘‘NSPS for Hot
modification costs, ‘‘the cause of which
results from new hydrologic or seismic Outside TVA Preference Customers Mix Asphalt Facilities (40 CFR part 60,
data or changes in the state-of-the-art subpart I) (Renewal)’’ (EPA ICR No.
(Excluding Customers served through 1127.11, OMB Control No. 2060–0083)
design or construction criteria deemed Carolina Power & Light Company or
necessary for safety purposes’’. 33 to the Office of Management and Budget
East Kentucky Power Cooperative) (OMB) for review and approval in
U.S.C. 467n(a). When applicable, the
Dam Safety Act requires that dam safety Capacity and Base Energy: $3.733 per accordance with the Paperwork
repair costs be recovered within thirty kW/Month Reduction Act (44 U.S.C. 3501 et seq.).
years of completion of the work. If the Additional Energy: 13.914 mills per This is a proposed extension of the ICR,
Dam Safety Act is not applied, 100 kWh which is currently approved through
percent of all costs are assigned to Transmission: Monthly TVA May 31, 2015. Public comments were
project purposes for cost recovery but Transmission Charge divided by previously requested via the Federal
the thirty-year cost recovery 545,000 Register (79 FR 30117) on May 27, 2014
requirement does not attach. during a 60-day comment period. This
Customers Served Through Carolina notice allows for an additional 30 days
Southeastern continues to discuss,
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Power & Light Company for public comments. A fuller
analyze and seek guidance on the issue
from other relevant agencies. Capacity and Base Energy: $4.249 per description of the ICR is given below,
Proposed Rates: Southeastern is kW/Month including its estimated burden and cost
proposing three rate scenarios per rate TVA Transmission: TVA rate at border to the public. An Agency may not
schedule. All of the rate scenarios have as computed above, adjusted for DEP conduct or sponsor and a person is not
an annual revenue requirement of delivery. required to respond to a collection of
$78,500,000. This annual revenue DEP Transmission: $1.546 per kW/ information unless it displays a
requirement was calculated using the Month currently valid OMB control number.
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Document Created: 2018-02-21 10:33:41
Document Modified: 2018-02-21 10:33:41
| 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 proposed rates, public forum, and opportunities for public review and comment. | |
| Dates | Written comments are due on or before August 26, 2015. A public information and comment forum will be held at 2:00 p.m., on June 30, 2015. Persons desiring to attend the forum should notify Southeastern at least seven (7) days before the scheduled forum date. Persons desiring to speak at the forum should notify Southeastern at least three (3) days before the scheduled forum date, so that a list of forum participants can be prepared. Others may speak if time permits. | |
| Contact | Virgil G. Hobbs III, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, GA 30635-6711, (706) 213-3800. | |
| FR Citation | 80 FR 30451 |
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