80_FR_57535 80 FR 57351 - Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable; Bonneville Power Administration; Order Approving Rates on an Interim Basis and Providing Opportunity for Additional Comments

80 FR 57351 - Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable; Bonneville Power Administration; Order Approving Rates on an Interim Basis and Providing Opportunity for Additional Comments

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 80, Issue 184 (September 23, 2015)

Page Range57351-57353
FR Document2015-24136

Federal Register, Volume 80 Issue 184 (Wednesday, September 23, 2015)
[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Notices]
[Pages 57351-57353]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24136]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EF15-9-000]


Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, 
Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable; Bonneville 
Power Administration; Order Approving Rates on an Interim Basis and 
Providing Opportunity for Additional Comments

    1. In this order, we approve the Bonneville Power Administration's 
(Bonneville) proposed 2016 wholesale power and transmission rates on an 
interim basis, pending our further review. We also provide an 
additional period of time for the parties to file comments.

I. Background

    2. On July 29, 2015, Bonneville filed a request for interim and 
final approval of its wholesale power \1\ and transmission rates \2\ in 
accordance with

[[Page 57352]]

the Pacific Northwest Electric Power Planning and Conservation Act 
(Northwest Power Act) \3\ and Part 300 of the Commission's 
regulations.\4\ Bonneville projects that the filed rates will produce 
average annual power revenues of $2.861 billion, and average annual 
revenues from transmission and ancillary services rates of $1.085 
billion. Bonneville asserts that this level of annual revenues is 
sufficient to recover its costs for the 2016-2017 rate approval period, 
while providing cash flow to ensure at least a 95 percent probability 
of making all payments to the United States Treasury in full and on 
time for each year of the rate period.
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    \1\ The proposed wholesale power rates for which Bonneville 
seeks approval for the period October 1, 2015 through September 30, 
2017, include: Priority Firm Power Rate (PF-16); New Resource Firm 
Power Rate (NR-16); Industrial Firm Power Rate (IP-16); Firm Power 
Products and Services Rate (FPS-16); and Power General Rate Schedule 
Provisions (GRSPs).
    \2\ The proposed transmission rates for which Bonneville seeks 
approval for the period October 1, 2015 through September 30, 2017, 
include: Formula Power Transmission Rate (FPT-16.1); Formula Power 
Transmission Rate (FPT-16.3); Integration of Resources Rate (IR-16); 
Network Integration Rate (NT-16); Point-to-Point Rate (PTP-16); 
Southern Intertie Rate (IS-16); Montana Intertie Rate (IM-16); Use-
of-Facilities Transmission Rate (UFT-16); Advance Funding Rate (AF-
16); Ancillary Services and Control Area Services Rates (ACS-16); 
Townsend-Garrison Transmission Rate (TGT-16); WECC and Peak Service 
Rate (PW-16); Oversupply Rate (OS-16); Eastern Intertie Rate (IE-
16); and Transmission General Rate Schedule Provisions (GRSPs).
    \3\ 16 U.S.C. 839e (2012).
    \4\ 18 CFR Part 300 (2015).
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II. Notice of Filing

    3. Notice of Bonneville's application was published in the Federal 
Register,\5\ with protests and interventions due on or before August 
28, 2015. Timely motions to intervene were filed by the Turlock 
Irrigation District, Calpine Corporation, Public Power Council, 
Industrial Customers of Northwest Utilities, Northwest Requirements 
Utilities, Public Power Council, Idaho Power Company, PacifiCorp, Puget 
Sound Company, M-S-R Public Power Agency, Caithness Shepherds Flat LLC, 
Modesto Irrigation District, Pacific Northwest Generating Cooperative, 
Western Public Agencies Group, Powerex Corporation and Portland General 
Electric Company.
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    \5\ 80 FR 46,983 (Aug. 8, 2015).
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    4. Iberdrola Renewables, LLC (Iberdrola) filed a motion to 
intervene and protest. Iberdrola asserts that Bonneville's Oversupply 
Rate, OS-16, violates the Northwest Power Act by incorrectly allocating 
Bonneville's power costs to Bonneville's transmission customers.\6\ 
Iberdrola quotes Northwest Power Act section 7(g) as saying all costs 
of fish and wildlife measures, as well as all costs associated with the 
sale of or inability to sell excess power, must be allocated to power 
rates.\7\ Iberdrola argues Bonneville's oversupply management costs are 
fish and wildlife costs as well as costs associated with the inability 
to sell excess electric power, and thus should be allocated to power 
customers, not transmission customers.\8\ Iberdrola continues that, 
although Bonneville states that oversupply costs occur because wind 
generators have been interconnected to its system, the oversupply costs 
are actually caused by Bonneville having too much generation and not 
enough load, and having fish-protection restrictions on spillage that 
require Bonneville to pay someone to take the excess generation.\9\ 
Finally, Iberdrola argues that if Bonneville wishes to extend the use 
of the Oversupply Management Proposal (OMP) for the 2016-17 rate 
period, it should submit those rates to the Commission for review and 
approval under Federal Power Act section 211A.\10\
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    \6\ Iberdrola Protest at 3.
    \7\ Id. at 4.
    \8\ Id. at 5.
    \9\ Id. at 6.
    \10\ Id. at 7-8; 16 U.S.C. 824j-1(f) (2012).
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    5. Avista Corporation, Portland General Electric Company, Puget 
Sound Energy, Inc, and PacifiCorp (collectively Joint Commenters) filed 
Joint Comments requesting that the Commission reject Bonneville's 
proposed allocation of oversupply costs to transmission customers and 
deny Bonneville's application for confirmation and approval of the OS-
16 Rate.\11\ The Joint Commenters request that the OS-16 Rate should be 
rejected as a permanent solution to Bonneville's purported 
oversupply.\12\ The Joint Commenters also request that the Commission 
not rely on its prior OS-14 rate determinations in reviewing the OS-16 
rate,\13\ and that Bonneville's proposed allocation of oversupply costs 
to transmission is based on the flawed premise that interconnection of, 
or scheduling of transmission for, generation in Bonneville's Balancing 
Authority Area causes oversupply.\14\ The Joint Commenters also assert 
that it is Bonneville's reliance on OMP and its failure to take all 
reasonable actions to avoid excess spill that lead to the erroneous 
conclusion that transmission of displaceable generation interconnected 
in Bonneville's Balancing Authority Area causes oversupply.\15\ The 
Joint Commenters further assert that the Northwest Power Act \16\ and 
Transmission System Act \17\ cost allocation standards prohibit the 
allocation of oversupply costs to transmission rates.\18\
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    \11\ Joint Commenters at 18.
    \12\ Joint Commenters at 2, citing Bonneville Power Admin., 149 
FERC ] 61,043 (2014).
    \13\ Id. at 5-6.
    \14\ Id. at 7-11.
    \15\ Id. at 11-14.
    \16\ 16 U.S.C. 839 (2012).
    \17\ 16 U.S.C. 838 (2012).
    \18\ Id. at 14-17.
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III. Discussion

A. Procedural Matters

    6. Pursuant to Rule 214 of the Commission's Rules of Practice and 
Procedure,\19\ the timely, unopposed motions to intervene serve to make 
the entities that filed them parties to this proceeding.
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    \19\ 18 CFR 385.214 (2015).
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    7. Rule 213(a)(2) of the Commission's Rules of Practice and 
Procedure \20\ prohibits an answer to a protest or an answer unless 
otherwise ordered by the decisional authority.
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    \20\ 18 CFR 385.213(a)(2) (2015),
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B. Standard of Review

    8. Under the Northwest Power Act, the Commission's review of 
Bonneville's regional power and transmission rates is limited to 
determining whether Bonneville's proposed rates meet the three specific 
requirements of section 7(a)(2) of the Northwest Power Act: \21\
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    \21\ 16 U.S.C. 839e(a)(2) (2012). Bonneville also must comply 
with the financial, accounting, and ratemaking requirements in 
Department of Energy Order No. RA 6120.2.
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    (A) They must be sufficient to assure repayment of the federal 
investment in the Federal Columbia River Power System over a reasonable 
number of years after first meeting Bonneville's other costs;
    (B) they must be based upon Bonneville's total system costs; and
    (C) insofar as transmission rates are concerned, they must 
equitably allocate the costs of the federal transmission system between 
federal and non-federal power.
    9. Commission review of Bonneville's non-regional, non-firm rates 
also is limited. Review is restricted to determining whether such rates 
meet the requirements of section 7(k) of the Northwest Power Act,\22\ 
which requires that they comply with the Bonneville Project Act, the 
Flood Control Act of 1944, and the Federal Columbia River Transmission 
System Act. Taken together, those statutes require that Bonneville's 
non-regional, non-firm rates:
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    \22\ 16 U.S.C. 839e(k) (2012).
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    (A) Recover the cost of generation and transmission of such 
electric energy, including the amortization of investments in the power 
projects within a reasonable period;
    (B) encourage the most widespread use of Bonneville power; and

[[Page 57353]]

    (C) provide the lowest possible rates to consumers consistent with 
sound business principles.
    10. Unlike the Commission's statutory authority under the Federal 
Power Act, the Commission's authority under sections 7(a) and 7(k) of 
the Northwest Power Act does not include the power to modify the rates. 
The responsibility for developing rates in the first instance is vested 
with Bonneville's Administrator. The rates are then submitted to the 
Commission for approval or disapproval. In this regard, the 
Commission's role can be viewed as an appellate one: to affirm or 
remand the rates submitted to it for review.\23\
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    \23\ See, e.g., United States Department of Energy--Bonneville 
Power Admin., 67 FERC ] 61,351, at 62,216-17 (1994); see also, e.g., 
Aluminum Co. of America v. Bonneville Power Admin., 903 F.2d 585, 
592-93 (9th Cir. 1989).
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    11. Moreover, review at this interim stage is further limited. In 
view of the volume and complexity of a Bonneville rate application, 
such as the one now before the Commission in this filing, and the 
limited period in advance of the requested effective date in which to 
review the application,\24\ the Commission generally defers resolution 
of issues on the merits of Bonneville's application until the order on 
final confirmation. Thus, the proposed rates, if not patently 
deficient, generally are approved on an interim basis and the parties 
are afforded an additional opportunity in which to raise issues with 
regard to Bonneville's filing.\25\
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    \24\ See 18 CFR 300.10(a)(3)(ii) (2015).
    \25\ See, e.g., United States Department of Energy--Bonneville 
Power Administration, 64 FERC ] 61,375, at 63,606 (1993); United 
States Department of Energy--Bonneville Power Admin., 40 FERC ] 
61,351, at 62,059-60 (1987).
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    12. The Commission declines at this time to grant final 
confirmation and approval of Bonneville's proposed wholesale power and 
transmission rates. The Commission's preliminary review nevertheless 
indicates that Bonneville's wholesale power and transmission rates 
filing appears to meet the statutory standards and the minimum 
threshold filing requirements of Part 300 of the Commission's 
regulations.\26\ Moreover, the Commission's preliminary review of 
Bonneville's submittal indicates that it does not contain any patent 
deficiencies. The proposed rates therefore will be approved on an 
interim basis pending our further review. We note, as well, that no one 
will be harmed by this decision because interim approval allows 
Bonneville's rates to go into effect subject to refund with interest; 
the Commission may order refunds with interest if the Commission later 
determines in its final decision not to approve the rates.\27\
---------------------------------------------------------------------------

    \26\ See, e.g., United States Department of Energy--Bonneville 
Power Admin., 105 FERC ] 61,006, at PP 13-14 (2003); United States 
Department of Energy--Bonneville Power Admin., 96 FERC ] 61,360, at 
62,358 (2001).
    \27\ See 18 CFR 300.20(c) (2015).
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    13. In addition, we will provide an additional period of time for 
parties to file comments and reply comments on issues related to final 
confirmation and approval of Bonneville's proposed rates. This will 
ensure that the record in this proceeding is complete and fully 
developed.
    The Commission orders:
    (A) Interim approval of Bonneville's proposed wholesale power and 
transmission rates is hereby granted, to become effective on October 1, 
2015, through September 30, 2017, subject to refund with interest as 
set forth in section 300.20(c) of the Commission's regulations \28\ 
pending final action and either their approval or disapproval.
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    \28\ 18 CFR 300.20(c) (2015).
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    (B) Within thirty (30) days of the date of this order, parties who 
wish to do so may file additional comments regarding final confirmation 
and approval of Bonneville's proposed rates. Parties who wish to do so 
may file reply comments within twenty (20) days thereafter.
    (C) The Secretary shall promptly publish this order in the Federal 
Register.

    By the Commission.

    Issued: September 17, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-24136 Filed 9-22-15; 8:45 am]
 BILLING CODE 6717-01-P



                                                                          Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices                                                   57351

                                                  Enhancement Filing to be effective 11/                    Dated: September 17, 2015.                           person. Attendees may register in
                                                  16/2015.                                                Nathaniel J. Davis, Sr.,                               advance at the following Web page:
                                                    Filed Date: 9/16/15.                                  Deputy Secretary.                                      https://www.ferc.gov/whats-new/
                                                    Accession Number: 20150916–5137.                      [FR Doc. 2015–24135 Filed 9–22–15; 8:45 am]            registration/10-21-15-NRC-form.asp.
                                                    Comments Due: 5 p.m. ET 10/7/15.                      BILLING CODE 6717–01–P
                                                                                                                                                                 Attendees should bring a photo ID and
                                                    Docket Numbers: ER15–2658–000.                                                                               allow time to pass through building
                                                    Applicants: Midcontinent                                                                                     security procedures. There is no fee to
                                                  Independent System Operator, Inc.                       DEPARTMENT OF ENERGY                                   attend the open meeting.
                                                                                                                                                                    Commission conferences are
                                                    Description: § 205(d) Rate Filing:
                                                                                                          Federal Energy Regulatory                              accessible under section 508 of the
                                                  2015–09–16_Order 1000 (TOA) CTDS
                                                                                                          Commission                                             Rehabilitation Act of 1973. For
                                                  Enhancement Filing to be effective 11/
                                                                                                                                                                 accessibility accommodations please
                                                  15/2015.                                                [Docket No. AD06–6–000]
                                                                                                                                                                 send an email to accessibility@ferc.gov
                                                    Filed Date: 9/16/15.                                                                                         or call toll free 1–866–208–3372 (voice)
                                                    Accession Number: 20150916–5139.                      Joint Meeting of the Nuclear
                                                                                                          Regulatory Commission and the                          or 202–502–8659 (TTY); or send a fax to
                                                    Comments Due: 5 p.m. ET 10/7/15.                                                                             202–208–2106 with the required
                                                                                                          Federal Energy Regulatory
                                                    Docket Numbers: ER15–2659–000.                        Commission; Notice of Joint Meeting                    accommodations.
                                                    Applicants: Southern California                       of the Federal Energy Regulatory                          Questions about the meeting should
                                                  Edison Company.                                         Commission and the Nuclear                             be directed to Sarah McKinley at
                                                    Description: § 205(d) Rate Filing:                    Regulatory Commission                                  sarah.mckinley@ferc.gov or by phone at
                                                  Amended SGIA SEPV Palmdale East,                                                                               202–502–8368.
                                                  LLC to be effective 11/17/2015.                            The Federal Energy Regulatory                         Dated: September 17, 2015.
                                                    Filed Date: 9/17/15.                                  Commission (FERC) and the Nuclear
                                                                                                                                                                 Nathaniel J. Davis, Sr.,
                                                    Accession Number: 20150917–5002.                      Regulatory Commission (NRC) will hold
                                                                                                                                                                 Deputy Secretary.
                                                    Comments Due: 5 p.m. ET 10/8/15.                      a joint meeting on Wednesday, October
                                                                                                                                                                 [FR Doc. 2015–24134 Filed 9–22–15; 8:45 am]
                                                    Docket Numbers: ER15–2660–000.                        21, 2015 at the headquarters of the
                                                                                                          Federal Energy Regulatory Commission,                  BILLING CODE 6717–01–P
                                                    Applicants: Midcontinent
                                                                                                          888 First Street, NE., Washington, DC
                                                  Independent System Operator, Inc.
                                                                                                          20426. The meeting is expected to begin
                                                    Description: Annual Calculation of                                                                           DEPARTMENT OF ENERGY
                                                                                                          at 9:00 a.m. and conclude at
                                                  the Cost of New Entry value (‘‘CONE’’)
                                                                                                          approximately 11:30 a.m. Eastern Time.                 Federal Energy Regulatory
                                                  for each Local Resource Zone (‘‘LRZ’’)
                                                                                                          Members of the public may attend the                   Commission
                                                  in the MISO Region of Midcontinent
                                                                                                          open session. Commissioners from both
                                                  Independent System Operator, Inc.                                                                              [Docket No. EF15–9–000]
                                                                                                          agencies are expected to participate.
                                                    Filed Date: 9/16/15.                                     The format for the joint meeting will
                                                    Accession Number: 20150916–5149.                      consist of discussions between the two                 Before Commissioners: Norman C.
                                                    Comments Due: 5 p.m. ET 10/7/15.                      sets of Commissioners following                        Bay, Chairman; Philip D. Moeller,
                                                    Docket Numbers: ER15–2661–000.                        presentations by their respective staffs.              Cheryl A. LaFleur, Tony Clark, and
                                                    Applicants: PJM Interconnection,                      In addition, representatives of the North              Colette D. Honorable; Bonneville
                                                  L.L.C.                                                  American Electric Reliability                          Power Administration; Order
                                                    Description: § 205(d) Rate Filing:                    Corporation (NERC) will attend and                     Approving Rates on an Interim Basis
                                                  Original WMPA SA No. 4259, Queue                        participate in this meeting.                           and Providing Opportunity for
                                                  No. Z1–110 to be effective 7/22/2015.                      The technical conference will be                    Additional Comments
                                                    Filed Date: 9/17/15.                                  transcribed. Transcripts of the technical                1. In this order, we approve the
                                                    Accession Number: 20150917–5070.                      conference will be available for a fee                 Bonneville Power Administration’s
                                                    Comments Due: 5 p.m. ET 10/8/15.                      from Ace-Federal Reporters, Inc. ((202)                (Bonneville) proposed 2016 wholesale
                                                                                                          347–3700 or 1 (800) 336–6646). There                   power and transmission rates on an
                                                     The filings are accessible in the
                                                                                                          will be a free Webcast of the conference.              interim basis, pending our further
                                                  Commission’s eLibrary system by
                                                                                                          The webcast will allow persons to listen               review. We also provide an additional
                                                  clicking on the links or querying the
                                                                                                          to the technical conference, but not                   period of time for the parties to file
                                                  docket number.
                                                                                                          participate. Anyone with Internet access               comments.
                                                     Any person desiring to intervene or
                                                                                                          can listen to the conference by
                                                  protest in any of the above proceedings                                                                        I. Background
                                                                                                          navigating to the Calendar of Events at
                                                  must file in accordance with Rules 211                                                                            2. On July 29, 2015, Bonneville filed
                                                                                                          www.ferc.gov and locating the technical
                                                  and 214 of the Commission’s                                                                                    a request for interim and final approval
                                                                                                          conference in the Calendar. The
                                                  Regulations (18 CFR 385.211 and                                                                                of its wholesale power 1 and
                                                                                                          technical conference will contain a link
                                                  385.214) on or before 5:00 p.m. Eastern                                                                        transmission rates 2 in accordance with
                                                                                                          to its webcast. The Capital Connection
                                                  time on the specified comment date.
                                                                                                          provides technical support for the
                                                  Protests may be considered, but                                                                                   1 The proposed wholesale power rates for which
                                                                                                          webcast and offers the option of listing
                                                  intervention is necessary to become a                                                                          Bonneville seeks approval for the period October 1,
                                                                                                          to the meeting via phone-bridge for a
                                                  party to the proceeding.                                                                                       2015 through September 30, 2017, include: Priority
                                                                                                          fee. If you have any questions, please                 Firm Power Rate (PF–16); New Resource Firm
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                     eFiling is encouraged. More detailed
                                                                                                          visit www.CapitolConnection.org or call                Power Rate (NR–16); Industrial Firm Power Rate
                                                  information relating to filing                                                                                 (IP–16); Firm Power Products and Services Rate
                                                                                                          703–993–3100.1
                                                  requirements, interventions, protests,                                                                         (FPS–16); and Power General Rate Schedule
                                                                                                             Pre-registration is not required but is
                                                  service, and qualifying facilities filings                                                                     Provisions (GRSPs).
                                                                                                          highly encouraged for those attending in                  2 The proposed transmission rates for which
                                                  can be found at: http://www.ferc.gov/
                                                                                                                                                                 Bonneville seeks approval for the period October 1,
                                                  docs-filing/efiling/filing-req.pdf. For                   1 The Webcast will continue to be available on the   2015 through September 30, 2017, include: Formula
                                                  other information, call (866) 208–3676                  Calendar of Events on the Commission’s Web site        Power Transmission Rate (FPT–16.1); Formula
                                                  (toll free). For TTY, call (202) 502–8659.              www.ferc.gov for three months after the conference.                                              Continued




                                             VerDate Sep<11>2014   18:00 Sep 22, 2015   Jkt 235001   PO 00000   Frm 00020   Fmt 4703   Sfmt 4703   E:\FR\FM\23SEN1.SGM   23SEN1


                                                  57352                    Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices

                                                  the Pacific Northwest Electric Power                    sell excess electric power, and thus                  allocation of oversupply costs to
                                                  Planning and Conservation Act                           should be allocated to power customers,               transmission rates.18
                                                  (Northwest Power Act) 3 and Part 300 of                 not transmission customers.8 Iberdrola
                                                                                                                                                                III. Discussion
                                                  the Commission’s regulations.4                          continues that, although Bonneville
                                                  Bonneville projects that the filed rates                states that oversupply costs occur                    A. Procedural Matters
                                                  will produce average annual power                       because wind generators have been
                                                  revenues of $2.861 billion, and average                                                                         6. Pursuant to Rule 214 of the
                                                                                                          interconnected to its system, the
                                                  annual revenues from transmission and                                                                         Commission’s Rules of Practice and
                                                                                                          oversupply costs are actually caused by
                                                  ancillary services rates of $1.085 billion.                                                                   Procedure,19 the timely, unopposed
                                                                                                          Bonneville having too much generation
                                                  Bonneville asserts that this level of                                                                         motions to intervene serve to make the
                                                                                                          and not enough load, and having fish-
                                                  annual revenues is sufficient to recover                                                                      entities that filed them parties to this
                                                                                                          protection restrictions on spillage that
                                                  its costs for the 2016–2017 rate approval                                                                     proceeding.
                                                                                                          require Bonneville to pay someone to
                                                  period, while providing cash flow to                    take the excess generation.9 Finally,                   7. Rule 213(a)(2) of the Commission’s
                                                  ensure at least a 95 percent probability                Iberdrola argues that if Bonneville                   Rules of Practice and Procedure 20
                                                  of making all payments to the United                    wishes to extend the use of the                       prohibits an answer to a protest or an
                                                  States Treasury in full and on time for                 Oversupply Management Proposal                        answer unless otherwise ordered by the
                                                  each year of the rate period.                           (OMP) for the 2016–17 rate period, it                 decisional authority.
                                                  II. Notice of Filing                                    should submit those rates to the                      B. Standard of Review
                                                                                                          Commission for review and approval
                                                     3. Notice of Bonneville’s application                under Federal Power Act section                          8. Under the Northwest Power Act,
                                                  was published in the Federal Register,5                 211A.10                                               the Commission’s review of
                                                  with protests and interventions due on                                                                        Bonneville’s regional power and
                                                  or before August 28, 2015. Timely                          5. Avista Corporation, Portland                    transmission rates is limited to
                                                  motions to intervene were filed by the                  General Electric Company, Puget Sound                 determining whether Bonneville’s
                                                  Turlock Irrigation District, Calpine                    Energy, Inc, and PacifiCorp (collectively             proposed rates meet the three specific
                                                  Corporation, Public Power Council,                      Joint Commenters) filed Joint Comments                requirements of section 7(a)(2) of the
                                                  Industrial Customers of Northwest                       requesting that the Commission reject                 Northwest Power Act: 21
                                                  Utilities, Northwest Requirements                       Bonneville’s proposed allocation of
                                                                                                                                                                   (A) They must be sufficient to assure
                                                  Utilities, Public Power Council, Idaho                  oversupply costs to transmission
                                                                                                                                                                repayment of the federal investment in
                                                  Power Company, PacifiCorp, Puget                        customers and deny Bonneville’s
                                                                                                                                                                the Federal Columbia River Power
                                                  Sound Company, M-S-R Public Power                       application for confirmation and
                                                                                                                                                                System over a reasonable number of
                                                  Agency, Caithness Shepherds Flat LLC,                   approval of the OS–16 Rate.11 The Joint
                                                                                                                                                                years after first meeting Bonneville’s
                                                  Modesto Irrigation District, Pacific                    Commenters request that the OS–16
                                                                                                                                                                other costs;
                                                  Northwest Generating Cooperative,                       Rate should be rejected as a permanent
                                                                                                                                                                   (B) they must be based upon
                                                  Western Public Agencies Group,                          solution to Bonneville’s purported
                                                                                                                                                                Bonneville’s total system costs; and
                                                  Powerex Corporation and Portland                        oversupply.12 The Joint Commenters
                                                                                                          also request that the Commission not                     (C) insofar as transmission rates are
                                                  General Electric Company.                                                                                     concerned, they must equitably allocate
                                                     4. Iberdrola Renewables, LLC                         rely on its prior OS–14 rate
                                                                                                          determinations in reviewing the OS–16                 the costs of the federal transmission
                                                  (Iberdrola) filed a motion to intervene
                                                                                                          rate,13 and that Bonneville’s proposed                system between federal and non-federal
                                                  and protest. Iberdrola asserts that
                                                                                                          allocation of oversupply costs to                     power.
                                                  Bonneville’s Oversupply Rate, OS–16,
                                                  violates the Northwest Power Act by                     transmission is based on the flawed                      9. Commission review of Bonneville’s
                                                  incorrectly allocating Bonneville’s                     premise that interconnection of, or                   non-regional, non-firm rates also is
                                                  power costs to Bonneville’s                             scheduling of transmission for,                       limited. Review is restricted to
                                                  transmission customers.6 Iberdrola                      generation in Bonneville’s Balancing                  determining whether such rates meet
                                                  quotes Northwest Power Act section 7(g)                 Authority Area causes oversupply.14                   the requirements of section 7(k) of the
                                                  as saying all costs of fish and wildlife                The Joint Commenters also assert that it              Northwest Power Act,22 which requires
                                                  measures, as well as all costs associated               is Bonneville’s reliance on OMP and its               that they comply with the Bonneville
                                                  with the sale of or inability to sell                   failure to take all reasonable actions to             Project Act, the Flood Control Act of
                                                  excess power, must be allocated to                      avoid excess spill that lead to the                   1944, and the Federal Columbia River
                                                  power rates.7 Iberdrola argues                          erroneous conclusion that transmission                Transmission System Act. Taken
                                                  Bonneville’s oversupply management                      of displaceable generation                            together, those statutes require that
                                                  costs are fish and wildlife costs as well               interconnected in Bonneville’s                        Bonneville’s non-regional, non-firm
                                                  as costs associated with the inability to               Balancing Authority Area causes                       rates:
                                                                                                          oversupply.15 The Joint Commenters                       (A) Recover the cost of generation and
                                                  Power Transmission Rate (FPT–16.3); Integration of      further assert that the Northwest Power               transmission of such electric energy,
                                                  Resources Rate (IR–16); Network Integration Rate        Act 16 and Transmission System Act 17                 including the amortization of
                                                  (NT–16); Point-to-Point Rate (PTP–16); Southern                                                               investments in the power projects
                                                  Intertie Rate (IS–16); Montana Intertie Rate (IM–16);   cost allocation standards prohibit the
                                                  Use-of-Facilities Transmission Rate (UFT–16);                                                                 within a reasonable period;
                                                  Advance Funding Rate (AF–16); Ancillary Services          8 Id.at 5.                                             (B) encourage the most widespread
                                                  and Control Area Services Rates (ACS–16);                 9 Id.at 6.                                          use of Bonneville power; and
                                                  Townsend-Garrison Transmission Rate (TGT–16);
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                                                                                                           10 Id. at 7–8; 16 U.S.C. 824j–1(f) (2012).
                                                  WECC and Peak Service Rate (PW–16); Oversupply
                                                                                                           11 Joint Commenters at 18.
                                                  Rate (OS–16); Eastern Intertie Rate (IE–16); and                                                                18 Id.at 14–17.
                                                                                                           12 Joint Commenters at 2, citing Bonneville Power
                                                  Transmission General Rate Schedule Provisions                                                                   19 18 CFR 385.214 (2015).
                                                  (GRSPs).                                                Admin., 149 FERC ¶ 61,043 (2014).                       20 18 CFR 385.213(a)(2) (2015),
                                                    3 16 U.S.C. 839e (2012).                               13 Id. at 5–6.
                                                                                                                                                                  21 16 U.S.C. 839e(a)(2) (2012). Bonneville also
                                                    4 18 CFR Part 300 (2015).                              14 Id. at 7–11.
                                                                                                                                                                must comply with the financial, accounting, and
                                                    5 80 FR 46,983 (Aug. 8, 2015).                         15 Id. at 11–14.
                                                                                                                                                                ratemaking requirements in Department of Energy
                                                    6 Iberdrola Protest at 3.                              16 16 U.S.C. 839 (2012).                             Order No. RA 6120.2.
                                                    7 Id. at 4.                                            17 16 U.S.C. 838 (2012).                               22 16 U.S.C. 839e(k) (2012).




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                                                                          Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices                                            57353

                                                     (C) provide the lowest possible rates                into effect subject to refund with                     and approval by the Federal Energy
                                                  to consumers consistent with sound                      interest; the Commission may order                     Regulatory Commission (FERC) on a
                                                  business principles.                                    refunds with interest if the Commission                final basis.
                                                     10. Unlike the Commission’s statutory                later determines in its final decision not             DATES: The rates are effective October 1,
                                                  authority under the Federal Power Act,                  to approve the rates.27                                2015.
                                                  the Commission’s authority under                           13. In addition, we will provide an                 FOR FURTHER INFORMATION CONTACT:
                                                  sections 7(a) and 7(k) of the Northwest                 additional period of time for parties to               Virgil G. Hobbs III, Assistant
                                                  Power Act does not include the power                    file comments and reply comments on                    Administrator, Finance and Marketing,
                                                  to modify the rates. The responsibility                 issues related to final confirmation and               Southeastern Power Administration,
                                                  for developing rates in the first instance              approval of Bonneville’s proposed rates.               Department of Energy, 1166 Athens
                                                  is vested with Bonneville’s                             This will ensure that the record in this               Tech Road, Elberton, Georgia 30635–
                                                  Administrator. The rates are then                       proceeding is complete and fully                       4578, (706) 213–3800.
                                                  submitted to the Commission for                         developed.
                                                                                                             The Commission orders:                              SUPPLEMENTARY INFORMATION: The
                                                  approval or disapproval. In this regard,
                                                                                                             (A) Interim approval of Bonneville’s                Federal Energy Regulatory Commission,
                                                  the Commission’s role can be viewed as
                                                                                                          proposed wholesale power and                           by Order issued March 11, 2011, in
                                                  an appellate one: to affirm or remand
                                                                                                          transmission rates is hereby granted, to               Docket No. EF10–8–000 (134 FERC
                                                  the rates submitted to it for review.23
                                                                                                          become effective on October 1, 2015,                   62,233), confirmed and approved
                                                     11. Moreover, review at this interim
                                                                                                          through September 30, 2017, subject to                 Wholesale Power Rate Schedules VA–1–
                                                  stage is further limited. In view of the
                                                                                                          refund with interest as set forth in                   B, VA–2–B, VA–3–B, VA–4–B, CP&L–1–
                                                  volume and complexity of a Bonneville
                                                                                                          section 300.20(c) of the Commission’s                  B, CP&L–2–B, CP&L–3–B, CP&L–4–B,
                                                  rate application, such as the one now
                                                                                                          regulations 28 pending final action and                AP–1–B, AP–2–B, AP–3–B, AP–4–B,
                                                  before the Commission in this filing,
                                                                                                          either their approval or disapproval.                  NC–1–B, and Replacement–2–A through
                                                  and the limited period in advance of the
                                                                                                             (B) Within thirty (30) days of the date             September 30, 2015. This order replaces
                                                  requested effective date in which to
                                                                                                          of this order, parties who wish to do so               these rate schedules on an interim basis,
                                                  review the application,24 the
                                                                                                          may file additional comments regarding                 subject to final approval by FERC.
                                                  Commission generally defers resolution
                                                  of issues on the merits of Bonneville’s                 final confirmation and approval of                       Dated: September 16, 2015.
                                                  application until the order on final                    Bonneville’s proposed rates. Parties who               Elizabeth Sherwood-Randall,
                                                  confirmation. Thus, the proposed rates,                 wish to do so may file reply comments                  Deputy Secretary of Energy.
                                                  if not patently deficient, generally are                within twenty (20) days thereafter.
                                                                                                             (C) The Secretary shall promptly                    Department of Energy
                                                  approved on an interim basis and the
                                                  parties are afforded an additional                      publish this order in the Federal                      Deputy Secretary
                                                  opportunity in which to raise issues                    Register.
                                                                                                                                                                 In the Matter of: Southeastern Power
                                                  with regard to Bonneville’s filing.25                     By the Commission.
                                                                                                                                                                 Administration), Kerr-Philpott System
                                                     12. The Commission declines at this                    Issued: September 17, 2015.                          Power Rates), Rate Order No. SEPA–58
                                                  time to grant final confirmation and                    Nathaniel J. Davis, Sr.,
                                                  approval of Bonneville’s proposed                       Deputy Secretary.                                      Order Confirming and Approving
                                                  wholesale power and transmission rates.                                                                        Power Rates on an Interim Basis
                                                                                                          [FR Doc. 2015–24136 Filed 9–22–15; 8:45 am]
                                                  The Commission’s preliminary review                                                                               Pursuant to Sections 302(a) of the
                                                                                                          BILLING CODE 6717–01–P
                                                  nevertheless indicates that Bonneville’s                                                                       Department of Energy Organization Act,
                                                  wholesale power and transmission rates                                                                         Public Law 95–91, the functions of the
                                                  filing appears to meet the statutory                    DEPARTMENT OF ENERGY                                   Secretary of the Interior and the Federal
                                                  standards and the minimum threshold                                                                            Power Commission under Section 5 of
                                                  filing requirements of Part 300 of the                  Southeastern Power Administration                      the Flood Control Act of 1944, 16 U.S.C.
                                                  Commission’s regulations.26 Moreover,                                                                          825s, relating to the Southeastern Power
                                                  the Commission’s preliminary review of                  Kerr-Philpott System                                   Administration (Southeastern), were
                                                  Bonneville’s submittal indicates that it                                                                       transferred to and vested in the
                                                                                                          AGENCY: Southeastern Power
                                                  does not contain any patent                                                                                    Secretary of Energy. By Delegation
                                                                                                          Administration, (Southeastern),
                                                  deficiencies. The proposed rates                                                                               Order No. 00–037.00A, effective
                                                                                                          Department of Energy.
                                                  therefore will be approved on an interim                                                                       December 6, 2001, the Secretary of
                                                  basis pending our further review. We                    ACTION: Notice of interim approval.
                                                                                                                                                                 Energy delegated to Southeastern’s
                                                  note, as well, that no one will be                      SUMMARY:  The Deputy Secretary,                        Administrator the authority to develop
                                                  harmed by this decision because interim                 Department of Energy, confirmed and                    power and transmission rates, to the
                                                  approval allows Bonneville’s rates to go                approved, on an interim basis new rate                 Deputy Secretary of Energy the
                                                    23 See, e.g., United States Department of Energy—
                                                                                                          schedules VA–1–C, VA–2–C, VA–3–C,                      authority to confirm, approve, and place
                                                  Bonneville Power Admin., 67 FERC ¶ 61,351, at           VA–4–C, DEP–1–C, DEP–2–C, DEP–3–C,                     in effect such rates on interim basis, and
                                                  62,216–17 (1994); see also, e.g., Aluminum Co. of       DEP–4–C, AP–1–C, AP–2–C, AP–3–C,                       to the Federal Energy Regulatory
                                                  America v. Bonneville Power Admin., 903 F.2d 585,       AP–4–C, NC–1–C, and Replacement–2–                     Commission (FERC) the authority to
                                                  592–93 (9th Cir. 1989).                                 B. These rate schedules are applicable to              confirm, approve, and place into effect
                                                    24 See 18 CFR 300.10(a)(3)(ii) (2015).
                                                    25 See, e.g., United States Department of Energy—
                                                                                                          Southeastern power sold to existing                    on a final basis or to disapprove rates
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                                                  Bonneville Power Administration, 64 FERC ¶              preference customers in the Virginia                   developed by the Administrator under
                                                  61,375, at 63,606 (1993); United States Department      and North Carolina service area. The                   the delegation. This rate is issued by the
                                                  of Energy—Bonneville Power Admin., 40 FERC ¶            rate schedules are approved on an                      Deputy Secretary pursuant to that
                                                  61,351, at 62,059–60 (1987).                            interim basis through September 30,                    delegation order.
                                                    26 See, e.g., United States Department of Energy—
                                                                                                          2020, and are subject to confirmation
                                                  Bonneville Power Admin., 105 FERC ¶ 61,006, at PP                                                              Background
                                                  13–14 (2003); United States Department of Energy—
                                                  Bonneville Power Admin., 96 FERC ¶ 61,360, at             27 See   18 CFR 300.20(c) (2015).                       Power from the Kerr-Philpott Projects
                                                  62,358 (2001).                                            28 18   CFR 300.20(c) (2015).                        is presently sold under Wholesale


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Document Created: 2015-12-15 09:45:08
Document Modified: 2015-12-15 09:45:08
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
FR Citation80 FR 57351 

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