80_FR_44240 80 FR 44098 - Boulder Canyon Project-Rate Order No. WAPA-171

80 FR 44098 - Boulder Canyon Project-Rate Order No. WAPA-171

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 80, Issue 142 (July 24, 2015)

Page Range44098-44100
FR Document2015-18237

This action extends the existing Boulder Canyon Project (BCP) rate-setting formula through September 30, 2020, and approves the base charge and rates for FY 2016. The existing Electric Service Rate Schedule, BCP-F8, is set to expire on September 30, 2015. The Electric Service Rate Schedule contains a rate-setting formula that is recalculated annually based on updated financial and sales data.

Federal Register, Volume 80 Issue 142 (Friday, July 24, 2015)
[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)]
[Notices]
[Pages 44098-44100]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18237]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Boulder Canyon Project-Rate Order No. WAPA-171

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Extension of Existing Rate-setting Formula and 
Approval of Fiscal Year (FY) 2016 Base Charge and Rates.

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SUMMARY: This action extends the existing Boulder Canyon Project (BCP) 
rate-setting formula through September 30, 2020, and approves the base 
charge and rates for FY 2016. The existing Electric Service Rate 
Schedule, BCP-F8, is set to expire on September 30, 2015. The Electric 
Service Rate Schedule contains a rate-setting formula that is 
recalculated annually based on updated financial and sales data.

DATES: The first day of the first full billing period beginning on or 
after October 1, 2015, and extending through September 30, 2020, or 
until superseded by another rate schedule, whichever occurs earlier.

FOR FURTHER INFORMATION CONTACT: Mr. Ronald E. Moulton, Regional 
Manager, Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2453, 
email [email protected], or Mr. Jack Murray, Rates Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, email 
[email protected].

SUPPLEMENTARY INFORMATION: The existing Rate Schedule BCP-F8 under Rate 
Order No. WAPA-150\1\ was approved for a five-year period beginning on 
October 1, 2010, and ending September 30, 2015.
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    \1\ FERC confirmed and approved Rate Order No. WAPA-150 on 
December 9, 2010, in Docket No. EF10-7-000, See United States 
Department of Energy, Western Area Power Administration, Boulder 
Canyon Project, 133 FERC ] 62,229 (December 9, 2010).
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    Western proposed extending the existing rate-setting formula 
pursuant to 10 CFR part 903.23(a), Formula Rate Schedule BCP-F9 under 
Rate Order No. WAPA-171. The notice of proposed extension was published 
in the Federal Register on February 9, 2015 (80 FR 6955). As allowed by 
10 CFR part 903.23(a), Western held a public information forum and 
public comment forum. The consultation and comment period ended May 11, 
2015. All comments received during the comment period were considered 
in the development of the final rates.
    By Delegation Order No. 00-037.00A, effective October 25, 2013, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to the Administrator of Western Area Power 
Administration (Western); (2) the authority to confirm, approve, and 
place such rates into effect on an interim basis to the Deputy 
Secretary of Energy; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand or to disapprove such 
rates to the Federal Energy Regulatory Commission (FERC).
    Following review of Western's proposal within the Department of 
Energy, I hereby approve Rate Order No. WAPA-171, which extends the 
existing rate-setting formula through September 30, 2020, and approves 
the proposed BCP electric service base charge and rates for FY 2016. 
Rate Order No. WAPA-171 will be submitted to FERC for confirmation and 
approval on a final basis.

    Dated: July 17, 2015.
Elizabeth Sherwood-Randall,
Deputy Secretary.GPO Follow Lit

DEPARTMENT OF ENERGY

DEPUTY SECRETARY

    In the matter of:
Western Area Power Administration, Rate Extension for the Boulder 
Canyon Project, Electric Service Formula Rate Schedule

Rate Order No. WAPA-171

ORDER CONFIRMING AND APPROVING AN EXTENSION OF THE BOULDER CANYON 
PROJECT ELECTRIC SERVICE RATE-SETTING FORMULA AND FY 2016 BASE CHARGE 
AND RATES FORMULA RATE SCHEDULE

    These rates were 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 (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. 00-037.00A, effective October 25, 2013, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to the Administrator of Western Area Power 
Administration (Western); (2) the authority to confirm, approve, and 
place such rates into effect on an interim basis to the Deputy 
Secretary of Energy; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand or to disapprove such 
rates to the Federal Energy Regulatory Commission (FERC). This 
extension is issued pursuant to the Delegation Order and DOE rate 
extension procedures at 10 CFR part 903.23(a).

BACKGROUND

    On December 9, 2010, in Docket No. EF10-7-000 at 133 FERC ] 62,229, 
FERC issued an order confirming, approving and placing into effect on a 
final basis Electric Service Rate Schedule BCP-F8 for the Boulder 
Canyon Project (BCP). Electric Service Rate Schedule BCP-F8, Rate Order 
No. WAPA-150, was approved for five years beginning October 1, 2010 
through September 30, 2015.
    Western followed the Procedures for Public Participation in Power 
and Transmission Rate Adjustments and Extensions set forth in 10 CFR 
part 903.23(a) in extending the BCP rate-setting formula through 
September 30, 2020, and setting the new base charge and rates for 
Fiscal Year (FY) 2016. The steps Western took to involve interested 
parties in the rate process were:
    1. On February 9, 2015, Western published a notice in the Federal 
Register (80 FR 6955) announcing the extension of the rate-setting 
formula and the proposed base charge and rates for BCP. Publication of 
this notice initiated the public consultation and comment period, and 
announced the public information and public comment forums. Western 
also announced the public forum dates and posted the BCP rate 
adjustment at http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm.
    2. On March 11, 2015, Western hosted an informal customer meeting 
in Phoenix, Arizona. At this informal

[[Page 44099]]

meeting, Western explained the rationale for the adjustment in the 
proposed base charge and rates, and answered questions. Contractors 
were notified of the informal meeting at the BCP Engineering and 
Operating Committee meetings in October 2014 and January 2015.
    3. On April 1, 2015, Western held a public information forum at the 
Desert Southwest Regional Office in Phoenix, Arizona. Western provided 
detailed explanations of the proposed base charge and rates for BCP, 
and answered questions. Western provided a copy of the rate 
presentation, supporting documentation, and informational handouts.
    4. On April 29, 2015, Western held a comment forum to give the 
public an opportunity to comment for the record. Individuals 
representing multiple entities commented at this forum.
    5. Western received two comment letters during the consultation and 
comment period, which ended May 11, 2015. All comments have been 
considered in preparing this Rate Order.
    Comments:
    Written comments were received from the following organizations: 
Metropolitan Water District of Southern California, California 
Irrigation & Electrical Districts Association of Arizona, Arizona
    The comments and responses regarding the electric service base 
charge and rates, paraphrased for brevity when not affecting the 
meaning of the statement(s), are discussed below. Direct quotes from 
comment letters are used for clarification, where necessary.
    Comment: Commenters expressed concern that many BCP Contractors, 
who will be new as of October 1, 2017, are not familiar with Western's 
existing rate-setting formula methodology. Western should consider 
reaching out to these new Contractors prior to October 1, 2017, and 
educate them on the methodology or, alternatively, alter the length of 
this proposed extension period so a new rate period will begin with the 
FY 2018 rate and base charge adjustment process.
    Response: Western has been providing outreach and education 
opportunities to the new BCP Contractors through the Post-2017 
remarketing and new electric service contracts negotiation processes. 
In addition, under the BCP Implementation Agreement, Western submits 
BCP rates to the Deputy Secretary of Energy for approval each year and 
with the proposed extension, the new Contractors will have an 
opportunity to participate and be educated in the annual rate process 
through informal customer meetings, as well as formal public 
information and comment forums.
    Comment: The BCP Contractors have proposed a joint audit paid for 
by the contractors with funds from prior year carryover. This joint 
audit would be completed prior to the termination of the Hoover 
Electric Service Contracts.
    Response: Western and Reclamation support the proposal of a joint 
audit prior to the termination of the existing Hoover Electric Service 
Contracts. Western and Reclamation also support the Contractors' 
proposal to fund the audit costs by reducing prior year carryover which 
effectively increases the FY 2016 base charge.
    Comment: Contractors expressed their support for extending the 
existing rate-setting formula methodology and approval of the base 
charge and rates for FY 2016.
    Response: Western appreciates the contractors expressing its 
support with the extension of the existing rate-setting formula 
methodology and calculation of the base charge and rates for FY 2016.

DISCUSSION

    On September 30, 2015, the BCP Electric Service Rate Schedule BCP-
F8 will expire. This makes it necessary to extend the existing rate-
setting formula and approve the FY 2016 Base Charge and Rates. With 
this approval, the existing rate-setting formula under Rate Schedule 
BCP-F9 will be extended under Rate Order No. WAPA-171.
    The existing electric service rate-setting formula provides 
adequate revenue to pay all annual costs, including interest expense, 
and to repay investment within the cost recovery criteria as set forth 
in DOE Order RA 6120.2. Rate Order No. WAPA-171 extends the existing 
rate-setting formula through September 30, 2020, thereby continuing to 
ensure project repayment within the cost recovery criteria.
    The existing base charge for FY 2015 is $61,008,518, the composite 
rate is 16.28 mills/kWh, the energy rate is 8.14 mills/kwh, and 
capacity rate is $1.61/kW/month.
    The BCP increase in the electric service base charge and rates for 
FY 2016 is driven by three factors: 1) an increase of approximately $2 
million in annual expenses, primarily estimated replacements and 
visitor center costs, and principal payments for uprating program and 
capitalized investments from FY 2015 to FY 2016; 2) a $1.5 million 
reduction in projected carryover between FY 2015 and FY 2016; and 3) a 
projected increase of $750K in other revenues, which acts as an offset 
to total expenses. The proposed base charge for FY 2016 is $63,735,856, 
composite rate is 18.33 mills/kWh, energy rate is 9.17 mills/kWh, and 
capacity rate is $1.72/kW/month. While there is an increase between FY 
2015 and FY 2016, Western notes the base charge and rates for FY 2015 
were artificially reduced due to actions taken by Contractors in FY 
2014 and issues faced by Reclamation. During FY 2014, the BCP 
Contractors refinanced the highest interest rate debt on the visitor 
facilities and air slots investments, effectively eliminating them as a 
cost in the power repayment study. This transaction had the effect of 
increasing carryover by approximately $5 million at the end of FY 2014, 
and decreasing the base charge for FY 2015. At the same time, due to 
budget sequestration issues at the end of FY 2013, expenses at the end 
of FY 2013 were much lower than expected. The final results, received 
in mid-FY 2014, also served to increase the amount of carryover 
available to apply against the base charge and rates for FY 2015.

AVAILABILITY OF INFORMATION

    Information about this extension and adjustment of electric service 
base charge and rates, including power repayment studies, comments, 
letters, memoranda, and other supporting material made or kept by 
Western to develop the provisional base charge and rates, is available 
for public review in the Desert Southwest Customer Service Regional 
Office, Western Area Power Administration, 615 South 43 Avenue, 
Phoenix, Arizona.
    Dated: July 17, 2015
    Elizabeth Sherwood-Randall
    Deputy Secretary
    Formula Rate Schedule BCP-F9
    (Supersedes Schedule BCP-F8)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

Boulder Canyon Project Desert Southwest Customer Service Region

SCHEDULE OF RATES FOR ELECTRIC SERVICE

Effective:

    The first day of the first full billing period beginning on or 
after October 1, 2015, and extending through September 30, 2020, or 
until superseded by another rate schedule, whichever occurs earlier.

Available:

    In the marketing area serviced by the Boulder Canyon Project (BCP).

Applicable:

    To power Contractors served by the BCP supplied through one meter, 
at one

[[Page 44100]]

point of delivery, unless otherwise provided by contract.

Character and Conditions of Service:

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points established by contract.

Base Charge:

    The total charge paid by a Contractor for annual capacity and 
energy based on the annual revenue requirement. The base charge shall 
be composed of an energy component and a capacity component:
    ENERGY CHARGE: Each Contractor shall be billed monthly an energy 
charge equal to the rate year energy dollar multiplied by the 
Contractor's firm energy percentage multiplied by the Contractor's 
monthly energy ratio as provided by contract.
    CAPACITY CHARGE: Each Contractor shall be billed monthly a capacity 
charge equal to the rate year capacity dollar divided by 12 multiplied 
by the Contractor's contingent capacity percentage as provided by 
contract.

Forecast Rates:

    ENERGY: Shall be equal to the rate year energy dollar divided by 
the lesser of the total master schedule energy or 4,501.001 million 
kWhs. This rate is to be applied for use of excess energy, unauthorized 
overruns, and water pump energy.
    CAPACITY: Shall be equal to the rate year capacity dollar divided 
by 1,951,000 kWs, to be applied for use of unauthorized overruns.

Calculated Energy Rate:

    Within 90 days after the end of each rate year, a calculated energy 
rate shall be calculated. If the energy deemed delivered is greater 
than 4,501.001 million kWhs, then the calculated energy rate shall be 
applied to each Contractor's energy deemed delivered. A credit or debit 
shall be established based on the difference between the Contractor's 
energy dollar and the Contractor's actual energy charge, to be applied 
the following month or as soon as possible thereafter.

Lower Basin Development Fund Contribution Charge:

    The contribution charge is 4.5 mills/kWh for each kWh measured or 
scheduled to an Arizona purchaser and 2.5 mills/kWh for each kWh 
measured or scheduled to a California or Nevada purchaser, except for 
purchased power.

Billing for Unauthorized Overruns:

    For each billing period in which there is a contract violation 
involving an unauthorized overrun of the contractual power obligations, 
such overrun shall be billed at 10 times the forecast energy rate and 
forecast capacity rate. The contribution charge shall also be applied 
to each kWh of overrun.

Adjustments:

    None.

ORDER

    In view of the foregoing and under the authority delegated to me, I 
hereby extend from October 1, 2015, through September 30, 2020, the 
existing BCP rate-setting formula and approve the base charge and rates 
for FY 2016, on an interim basis for the BCP. Formula Rate Schedule 
BCP-F9 shall remain in effect on an interim basis, pending FERC 
confirmation and approval of this extension or substitute rates on a 
final basis through September 30, 2020.

    Dated: July 17, 2015
Elizabeth Sherwood-Randall,
Deputy Secretary.
[FR Doc. 2015-18237 Filed 7-23-15; 8:45 am]
 BILLING CODE 6450-01-P



                                                    44098                            Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices

                                                    must also serve a copy of the document                   approved for a five-year period                       Secretary of Energy the power marketing
                                                    on that resource agency. A copy of all                   beginning on October 1, 2010, and                     functions of the Secretary of the
                                                    other filings in reference to this                       ending September 30, 2015.                            Department of the Interior and the
                                                    application must be accompanied by                          Western proposed extending the                     Bureau of Reclamation (Reclamation)
                                                    proof of service on all persons listed in                existing rate-setting formula pursuant to             under the Reclamation Act of 1902 (ch.
                                                    the service list prepared by the                         10 CFR part 903.23(a), Formula Rate                   1093, 32 Stat. 388), as amended and
                                                    Commission in this proceeding, in                        Schedule BCP–F9 under Rate Order No.                  supplemented by subsequent laws,
                                                    accordance with 18 CFR 4.34(b) and                       WAPA–171. The notice of proposed                      particularly section 9(c) of the
                                                    385.2010.                                                extension was published in the Federal                Reclamation Project Act of 1939 (43
                                                      Dated: July 17, 2015.                                  Register on February 9, 2015 (80 FR                   U.S.C. 485h(c)), and other acts that
                                                    Kimberly D. Bose,                                        6955). As allowed by 10 CFR part                      specifically apply to the project
                                                                                                             903.23(a), Western held a public                      involved.
                                                    Secretary.
                                                                                                             information forum and public comment                     By Delegation Order No. 00–037.00A,
                                                    [FR Doc. 2015–18108 Filed 7–23–15; 8:45 am]                                                                    effective October 25, 2013, the Secretary
                                                                                                             forum. The consultation and comment
                                                    BILLING CODE 6717–01–P                                                                                         of Energy delegated: (1) The authority to
                                                                                                             period ended May 11, 2015. All
                                                                                                             comments received during the comment                  develop power and transmission rates to
                                                                                                             period were considered in the                         the Administrator of Western Area
                                                    DEPARTMENT OF ENERGY                                                                                           Power Administration (Western); (2) the
                                                                                                             development of the final rates.
                                                    Western Area Power Administration                           By Delegation Order No. 00–037.00A,                authority to confirm, approve, and place
                                                                                                             effective October 25, 2013, the Secretary             such rates into effect on an interim basis
                                                    Boulder Canyon Project-Rate Order                        of Energy delegated: (1) The authority to             to the Deputy Secretary of Energy; and
                                                    No. WAPA–171                                             develop power and transmission rates to               (3) the authority to confirm, approve,
                                                                                                             the Administrator of Western Area                     and place into effect on a final basis, to
                                                    AGENCY:  Western Area Power                              Power Administration (Western); (2) the               remand or to disapprove such rates to
                                                    Administration, DOE.                                     authority to confirm, approve, and place              the Federal Energy Regulatory
                                                    ACTION: Notice of Extension of Existing                  such rates into effect on an interim basis            Commission (FERC). This extension is
                                                    Rate-setting Formula and Approval of                     to the Deputy Secretary of Energy; and                issued pursuant to the Delegation Order
                                                    Fiscal Year (FY) 2016 Base Charge and                    (3) the authority to confirm, approve,                and DOE rate extension procedures at
                                                    Rates.                                                   and place into effect on a final basis, to            10 CFR part 903.23(a).
                                                    SUMMARY:    This action extends the                      remand or to disapprove such rates to                 BACKGROUND
                                                    existing Boulder Canyon Project (BCP)                    the Federal Energy Regulatory
                                                                                                             Commission (FERC).                                       On December 9, 2010, in Docket No.
                                                    rate-setting formula through September                                                                         EF10–7–000 at 133 FERC ¶ 62,229,
                                                    30, 2020, and approves the base charge                      Following review of Western’s
                                                                                                             proposal within the Department of                     FERC issued an order confirming,
                                                    and rates for FY 2016. The existing                                                                            approving and placing into effect on a
                                                    Electric Service Rate Schedule, BCP–F8,                  Energy, I hereby approve Rate Order No.
                                                                                                             WAPA–171, which extends the existing                  final basis Electric Service Rate
                                                    is set to expire on September 30, 2015.                                                                        Schedule BCP–F8 for the Boulder
                                                    The Electric Service Rate Schedule                       rate-setting formula through September
                                                                                                             30, 2020, and approves the proposed                   Canyon Project (BCP). Electric Service
                                                    contains a rate-setting formula that is                                                                        Rate Schedule BCP–F8, Rate Order No.
                                                    recalculated annually based on updated                   BCP electric service base charge and
                                                                                                             rates for FY 2016. Rate Order No.                     WAPA–150, was approved for five years
                                                    financial and sales data.                                                                                      beginning October 1, 2010 through
                                                    DATES: The first day of the first full
                                                                                                             WAPA–171 will be submitted to FERC
                                                                                                             for confirmation and approval on a final              September 30, 2015.
                                                    billing period beginning on or after                                                                              Western followed the Procedures for
                                                    October 1, 2015, and extending through                   basis.
                                                                                                                                                                   Public Participation in Power and
                                                    September 30, 2020, or until superseded                    Dated: July 17, 2015.                               Transmission Rate Adjustments and
                                                    by another rate schedule, whichever                      Elizabeth Sherwood-Randall,                           Extensions set forth in 10 CFR part
                                                    occurs earlier.                                          Deputy Secretary.                                     903.23(a) in extending the BCP rate-
                                                    FOR FURTHER INFORMATION CONTACT: Mr.                                                                           setting formula through September 30,
                                                                                                             DEPARTMENT OF ENERGY
                                                    Ronald E. Moulton, Regional Manager,                                                                           2020, and setting the new base charge
                                                    Desert Southwest Customer Service                        DEPUTY SECRETARY                                      and rates for Fiscal Year (FY) 2016. The
                                                    Region, Western Area Power                                 In the matter of:                                   steps Western took to involve interested
                                                    Administration, P.O. Box 6457,                           Western Area Power Administration,                    parties in the rate process were:
                                                    Phoenix, AZ 85005–6457, (602) 605–                           Rate Extension for the Boulder                       1. On February 9, 2015, Western
                                                    2453, email moulton@wapa.gov, or Mr.                         Canyon Project, Electric Service                  published a notice in the Federal
                                                    Jack Murray, Rates Manager, Desert                           Formula Rate Schedule                             Register (80 FR 6955) announcing the
                                                    Southwest Customer Service Region,                       Rate Order No. WAPA–171                               extension of the rate-setting formula and
                                                    Western Area Power Administration,                                                                             the proposed base charge and rates for
                                                    P.O. Box 6457, Phoenix, AZ 85005–                        ORDER CONFIRMING AND                                  BCP. Publication of this notice initiated
                                                    6457, (602) 605–2442, email jmurray@                     APPROVING AN EXTENSION OF THE                         the public consultation and comment
                                                    wapa.gov.                                                BOULDER CANYON PROJECT                                period, and announced the public
                                                                                                             ELECTRIC SERVICE RATE-SETTING                         information and public comment
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    SUPPLEMENTARY INFORMATION: The
                                                                                                             FORMULA AND FY 2016 BASE                              forums. Western also announced the
                                                    existing Rate Schedule BCP–F8 under
                                                                                                             CHARGE AND RATES FORMULA                              public forum dates and posted the BCP
                                                    Rate Order No. WAPA–1501 was
                                                                                                             RATE SCHEDULE                                         rate adjustment at http://
                                                      1 FERC confirmed and approved Rate Order No.             These rates were established in                     www.wapa.gov/dsw/pwrmkt/BCP/
                                                    WAPA–150 on December 9, 2010, in Docket No.              accordance with Section 302 of the                    RateAdjust.htm.
                                                    EF10–7–000, See United States Department of              Department of Energy (DOE)                               2. On March 11, 2015, Western hosted
                                                    Energy, Western Area Power Administration,
                                                    Boulder Canyon Project, 133 FERC ¶ 62,229                Organization Act (42 U.S.C. 7152). This               an informal customer meeting in
                                                    (December 9, 2010).                                      act transferred to and vested in the                  Phoenix, Arizona. At this informal


                                               VerDate Sep<11>2014   19:59 Jul 23, 2015   Jkt 235001   PO 00000   Frm 00080   Fmt 4703   Sfmt 4703   E:\FR\FM\24JYN1.SGM   24JYN1


                                                                                     Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices                                          44099

                                                    meeting, Western explained the                           through informal customer meetings, as                FY 2016 is $63,735,856, composite rate
                                                    rationale for the adjustment in the                      well as formal public information and                 is 18.33 mills/kWh, energy rate is 9.17
                                                    proposed base charge and rates, and                      comment forums.                                       mills/kWh, and capacity rate is $1.72/
                                                    answered questions. Contractors were                       Comment: The BCP Contractors have                   kW/month. While there is an increase
                                                    notified of the informal meeting at the                  proposed a joint audit paid for by the                between FY 2015 and FY 2016, Western
                                                    BCP Engineering and Operating                            contractors with funds from prior year                notes the base charge and rates for FY
                                                    Committee meetings in October 2014                       carryover. This joint audit would be                  2015 were artificially reduced due to
                                                    and January 2015.                                        completed prior to the termination of                 actions taken by Contractors in FY 2014
                                                       3. On April 1, 2015, Western held a                   the Hoover Electric Service Contracts.                and issues faced by Reclamation. During
                                                    public information forum at the Desert                     Response: Western and Reclamation                   FY 2014, the BCP Contractors
                                                    Southwest Regional Office in Phoenix,                    support the proposal of a joint audit                 refinanced the highest interest rate debt
                                                    Arizona. Western provided detailed                       prior to the termination of the existing              on the visitor facilities and air slots
                                                    explanations of the proposed base                        Hoover Electric Service Contracts.                    investments, effectively eliminating
                                                    charge and rates for BCP, and answered                   Western and Reclamation also support                  them as a cost in the power repayment
                                                    questions. Western provided a copy of                    the Contractors’ proposal to fund the                 study. This transaction had the effect of
                                                    the rate presentation, supporting                        audit costs by reducing prior year                    increasing carryover by approximately
                                                    documentation, and informational                         carryover which effectively increases                 $5 million at the end of FY 2014, and
                                                    handouts.                                                the FY 2016 base charge.                              decreasing the base charge for FY 2015.
                                                       4. On April 29, 2015, Western held a                    Comment: Contractors expressed their                At the same time, due to budget
                                                    comment forum to give the public an                      support for extending the existing rate-              sequestration issues at the end of FY
                                                    opportunity to comment for the record.                   setting formula methodology and                       2013, expenses at the end of FY 2013
                                                    Individuals representing multiple                        approval of the base charge and rates for             were much lower than expected. The
                                                    entities commented at this forum.                        FY 2016.                                              final results, received in mid-FY 2014,
                                                       5. Western received two comment                         Response: Western appreciates the                   also served to increase the amount of
                                                    letters during the consultation and                      contractors expressing its support with               carryover available to apply against the
                                                    comment period, which ended May 11,                      the extension of the existing rate-setting            base charge and rates for FY 2015.
                                                    2015. All comments have been                             formula methodology and calculation of
                                                    considered in preparing this Rate Order.                 the base charge and rates for FY 2016.                AVAILABILITY OF INFORMATION
                                                       Comments:                                                                                                     Information about this extension and
                                                       Written comments were received from                   DISCUSSION
                                                                                                                                                                   adjustment of electric service base
                                                    the following organizations:                                On September 30, 2015, the BCP
                                                                                                                                                                   charge and rates, including power
                                                    Metropolitan Water District of Southern                  Electric Service Rate Schedule BCP–F8
                                                                                                                                                                   repayment studies, comments, letters,
                                                    California, California Irrigation &                      will expire. This makes it necessary to
                                                                                                                                                                   memoranda, and other supporting
                                                    Electrical Districts Association of                      extend the existing rate-setting formula
                                                                                                                                                                   material made or kept by Western to
                                                    Arizona, Arizona                                         and approve the FY 2016 Base Charge
                                                       The comments and responses                                                                                  develop the provisional base charge and
                                                                                                             and Rates. With this approval, the
                                                    regarding the electric service base                                                                            rates, is available for public review in
                                                                                                             existing rate-setting formula under Rate
                                                    charge and rates, paraphrased for                                                                              the Desert Southwest Customer Service
                                                                                                             Schedule BCP–F9 will be extended
                                                    brevity when not affecting the meaning                                                                         Regional Office, Western Area Power
                                                                                                             under Rate Order No. WAPA–171.
                                                    of the statement(s), are discussed below.                   The existing electric service rate-                Administration, 615 South 43 Avenue,
                                                    Direct quotes from comment letters are                   setting formula provides adequate                     Phoenix, Arizona.
                                                    used for clarification, where necessary.                 revenue to pay all annual costs,                        Dated: July 17, 2015
                                                       Comment: Commenters expressed                         including interest expense, and to repay                Elizabeth Sherwood-Randall
                                                    concern that many BCP Contractors,                       investment within the cost recovery                     Deputy Secretary
                                                    who will be new as of October 1, 2017,                   criteria as set forth in DOE Order RA                   Formula Rate Schedule BCP–F9
                                                    are not familiar with Western’s existing                 6120.2. Rate Order No. WAPA–171                         (Supersedes Schedule BCP–F8)
                                                    rate-setting formula methodology.                        extends the existing rate-setting formula             UNITED STATES DEPARTMENT OF
                                                    Western should consider reaching out to                  through September 30, 2020, thereby                   ENERGY WESTERN AREA POWER
                                                    these new Contractors prior to October                   continuing to ensure project repayment                ADMINISTRATION
                                                    1, 2017, and educate them on the                         within the cost recovery criteria.
                                                    methodology or, alternatively, alter the                    The existing base charge for FY 2015               Boulder Canyon Project Desert
                                                    length of this proposed extension period                 is $61,008,518, the composite rate is                 Southwest Customer Service Region
                                                    so a new rate period will begin with the                 16.28 mills/kWh, the energy rate is 8.14              SCHEDULE OF RATES FOR ELECTRIC
                                                    FY 2018 rate and base charge                             mills/kwh, and capacity rate is $1.61/                SERVICE
                                                    adjustment process.                                      kW/month.
                                                       Response: Western has been                               The BCP increase in the electric                   Effective:
                                                    providing outreach and education                         service base charge and rates for FY                    The first day of the first full billing
                                                    opportunities to the new BCP                             2016 is driven by three factors: 1) an                period beginning on or after October 1,
                                                    Contractors through the Post-2017                        increase of approximately $2 million in               2015, and extending through September
                                                    remarketing and new electric service                     annual expenses, primarily estimated                  30, 2020, or until superseded by another
                                                    contracts negotiation processes. In                      replacements and visitor center costs,
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                                                                                                                                                                   rate schedule, whichever occurs earlier.
                                                    addition, under the BCP                                  and principal payments for uprating
                                                    Implementation Agreement, Western                        program and capitalized investments                   Available:
                                                    submits BCP rates to the Deputy                          from FY 2015 to FY 2016; 2) a $1.5                      In the marketing area serviced by the
                                                    Secretary of Energy for approval each                    million reduction in projected carryover              Boulder Canyon Project (BCP).
                                                    year and with the proposed extension,                    between FY 2015 and FY 2016; and 3)
                                                    the new Contractors will have an                         a projected increase of $750K in other                Applicable:
                                                    opportunity to participate and be                        revenues, which acts as an offset to total             To power Contractors served by the
                                                    educated in the annual rate process                      expenses. The proposed base charge for                BCP supplied through one meter, at one


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                                                    44100                            Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices

                                                    point of delivery, unless otherwise                      unauthorized overrun of the contractual               transmission service from the Navajo
                                                    provided by contract.                                    power obligations, such overrun shall be              (500-kV) portion of the CAP on a short-
                                                                                                             billed at 10 times the forecast energy                term (less than 12 months) basis at
                                                    Character and Conditions of Service:
                                                                                                             rate and forecast capacity rate. The                  current CAP 115/230-kV rates under
                                                      Alternating current at 60 hertz, three-                contribution charge shall also be                     Western’s Administrator’s authority to
                                                    phase, delivered and metered at the                      applied to each kWh of overrun.                       set rates for short-term sales
                                                    voltages and points established by                                                                             (Department of Energy Delegation Order
                                                    contract.                                                Adjustments:
                                                                                                                                                                   No. 00–037.00A, ¶1.5). Western will
                                                    Base Charge:                                              None.                                                prepare and provide a brochure
                                                                                                             ORDER                                                 detailing information on the proposed
                                                      The total charge paid by a Contractor                                                                        rates. Proposed rates, under Rate
                                                    for annual capacity and energy based on                    In view of the foregoing and under the              Schedules CAP–FT3, CAP–NFT3, and
                                                    the annual revenue requirement. The                      authority delegated to me, I hereby                   CAP–NITS3, are scheduled to go into
                                                    base charge shall be composed of an                      extend from October 1, 2015, through                  effect on January 1, 2016, and remain in
                                                    energy component and a capacity                          September 30, 2020, the existing BCP                  effect through December 31, 2020.
                                                    component:                                               rate-setting formula and approve the
                                                      ENERGY CHARGE: Each Contractor                                                                               Publication of this Federal Register
                                                                                                             base charge and rates for FY 2016, on an              notice begins the formal process for the
                                                    shall be billed monthly an energy charge                 interim basis for the BCP. Formula Rate
                                                    equal to the rate year energy dollar                                                                           proposed rates.
                                                                                                             Schedule BCP–F9 shall remain in effect
                                                    multiplied by the Contractor’s firm                      on an interim basis, pending FERC                     DATES:  The consultation and comment
                                                    energy percentage multiplied by the                      confirmation and approval of this                     period begins today and will end
                                                    Contractor’s monthly energy ratio as                     extension or substitute rates on a final              October 22, 2015. Western will present
                                                    provided by contract.                                    basis through September 30, 2020.                     a detailed explanation of the proposed
                                                      CAPACITY CHARGE: Each Contractor                                                                             rates at a public information forum on
                                                    shall be billed monthly a capacity                         Dated: July 17, 2015
                                                                                                                                                                   August 27, 2015, beginning at 10:00 a.m.
                                                    charge equal to the rate year capacity                   Elizabeth Sherwood-Randall,                           MST, in Phoenix, Arizona. Western will
                                                    dollar divided by 12 multiplied by the                   Deputy Secretary.                                     accept oral and written comments at a
                                                    Contractor’s contingent capacity                         [FR Doc. 2015–18237 Filed 7–23–15; 8:45 am]           public comment forum on September
                                                    percentage as provided by contract.                      BILLING CODE 6450–01–P                                24, 2015, beginning at 10:00 a.m. MST,
                                                    Forecast Rates:                                                                                                in Phoenix, Arizona. Western will
                                                                                                                                                                   accept written comments any time
                                                      ENERGY: Shall be equal to the rate                     DEPARTMENT OF ENERGY                                  during the 90-day consultation and
                                                    year energy dollar divided by the lesser                                                                       comment period.
                                                    of the total master schedule energy or                   Western Area Power Administration
                                                    4,501.001 million kWhs. This rate is to                                                                        ADDRESSES:   The public information
                                                    be applied for use of excess energy,                     Central Arizona Project—Rate Order                    forum and public comment forum will
                                                    unauthorized overruns, and water pump                    No. WAPA–172                                          be held at the Desert Southwest
                                                    energy.                                                                                                        Customer Service Regional Office,
                                                                                                             AGENCY: Western Area Power                            located at 615 South 43 Avenue,
                                                      CAPACITY: Shall be equal to the rate
                                                                                                             Administration, DOE.                                  Phoenix, Arizona, on the dates cited
                                                    year capacity dollar divided by
                                                    1,951,000 kWs, to be applied for use of                  ACTION: Notice of Proposed                            above. Written comments should be sent
                                                    unauthorized overruns.                                   Transmission Rates.                                   to Mr. Ronald E. Moulton, Senior Vice
                                                                                                             SUMMARY:    The Western Area Power                    President and Desert Southwest
                                                    Calculated Energy Rate:
                                                                                                             Administration (Western), a power                     Regional Manager, Desert Southwest
                                                      Within 90 days after the end of each                                                                         Customer Service Region, Western Area
                                                                                                             marketing administration within the
                                                    rate year, a calculated energy rate shall                                                                      Power Administration, P.O. Box 6457,
                                                    be calculated. If the energy deemed                      Department of Energy (DOE), is
                                                                                                             proposing an adjustment to the Central                Phoenix, Arizona 85005–6457, email
                                                    delivered is greater than 4,501.001                                                                            moulton@wapa.gov. Written comments
                                                    million kWhs, then the calculated                        Arizona Project (CAP) transmission
                                                                                                             rates for firm point-to-point                         may also be faxed to (602) 605–2490,
                                                    energy rate shall be applied to each                                                                           attention: Mr. Jack Murray, Rates
                                                    Contractor’s energy deemed delivered.                    transmission service, non-firm point-to-
                                                                                                             point transmission service, and Network               Manager. Western will post official
                                                    A credit or debit shall be established                                                                         information about the rate process on its
                                                    based on the difference between the                      Integration Transmission Service (NITS)
                                                                                                             on the CAP 115/230-kilovolt (kV)                      Web site at http://www.wapa.gov/dsw/
                                                    Contractor’s energy dollar and the                                                                             pwrmkt/CAPTRP/CAPTRP.htm.
                                                    Contractor’s actual energy charge, to be                 transmission lines. Current rates, under
                                                                                                             Rate Schedules CAP–FT2, CAP–NFT2                      Western will also post official
                                                    applied the following month or as soon                                                                         comments received via letter, fax and
                                                    as possible thereafter.                                  and CAP–NITS2, expire December 31,
                                                                                                             2015. Western is not proposing any                    email to this Web site. Western must
                                                    Lower Basin Development Fund                             changes to the existing rate-setting                  receive written comments by the end of
                                                    Contribution Charge:                                     formula through December 31, 2020, but                the consultation and comment period to
                                                                                                             is proposing to adjust the existing rates             ensure they are considered in Western’s
                                                      The contribution charge is 4.5 mills/                                                                        decision-making process. For more
                                                                                                             to provide sufficient revenue to cover all
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                                                    kWh for each kWh measured or                                                                                   information regarding attending the
                                                    scheduled to an Arizona purchaser and                    annual costs, including interest
                                                                                                             expenses, and to repay required                       forum, see the Attendance at the Forum
                                                    2.5 mills/kWh for each kWh measured                                                                            section of this notice.
                                                    or scheduled to a California or Nevada                   investment within the allowable period.
                                                    purchaser, except for purchased power.                   Western is also proposing to begin                    FOR FURTHER INFORMATION CONTACT:   Mr.
                                                                                                             charging for short-term transmission                  Jack Murray, Rates Manager, Desert
                                                    Billing for Unauthorized Overruns:                       service on the Navajo (500-kV) portion                Southwest Customer Service Region,
                                                       For each billing period in which there                of the CAP under Rate Schedule CAP–                   Western Area Power Administration,
                                                    is a contract violation involving an                     NFT3. Western currently markets excess                P.O. Box 6457, Phoenix, Arizona 85005–


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Document Created: 2018-02-23 09:24:31
Document Modified: 2018-02-23 09:24:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of Extension of Existing Rate-setting Formula and Approval of Fiscal Year (FY) 2016 Base Charge and Rates.
DatesThe first day of the first full billing period beginning on or after October 1, 2015, and extending through September 30, 2020, or until superseded by another rate schedule, whichever occurs earlier.
ContactMr. Ronald E. Moulton, Regional Manager, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2453, email [email protected], or Mr. Jack Murray, Rates Manager, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, email [email protected]
FR Citation80 FR 44098 

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