80 FR 59742 - Notice of Interim Approval for Southeastern Power Administration Cumberland System
DEPARTMENT OF ENERGY Federal Register Volume 80, Issue 191 (October 2, 2015)
Federal Register Volume 80, Issue 191 (October 2, 2015)
| Page Range | 59742-59756 | |
| FR Document | 2015-25102 |
[Federal Register Volume 80, Number 191 (Friday, October 2, 2015)] [Notices] [Pages 59742-59756] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-25102] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Notice of Interim Approval for Southeastern Power Administration Cumberland System AGENCY: Southeastern Power Administration, DOE. ACTION: Notice of interim approval. ----------------------------------------------------------------------- SUMMARY: The Deputy Secretary of Energy confirmed and approved, on an interim basis, Rate Schedules CBR-1-I, CSI-1-I, CEK-1-I, CM-1-I, CC-1- J, CK-1-I, CTV-1-I, CTVI-1-B, and Replacement-3. The rates were approved on an interim basis through September 30, 2020. The new rates take effect on October 1, 2015, and are subject to confirmation and approval on a final basis by the Federal Energy Regulatory Commission (Commission). DATES: Approval of the rate schedules on an interim basis is effective October 1, 2015, through September 30, 2020. FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs, III, Assistant Administrator, Finance & Marketing, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635- 6711, (706) 213-3838. SUPPLEMENTARY INFORMATION: On December 22, 2011, the Commission confirmed and approved on a final basis Wholesale Power Rate Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3 for the period from October 1, 2011, to September 30, 2013 (137 FERC ] 62,249). On July 10, 2013, the Deputy Secretary approved an extension of the rate schedules through September 30, 2015 (78 FR 42764). The Southeastern Power Administration's power marketing policy (58 FR 41762, Aug. 5, 1993) provides peaking capacity, along with 1500 kilowatt-hours of energy with each kilowatt of capacity, to customers outside the Tennessee Valley Authority (TVA) transmission system. Due to restrictions on the operations of the Center Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern has not been able to provide full peaking capacity to these customers. A revised interim operating plan for the Cumberland System provides these customers with energy that includes a proportional percentage of normal marketed capacity. A current repayment study using present rates shows that revenues will not be adequate to meet repayment criteria. A revised study with a revenue requirement increase of $3,900,000, or about seven percent, shows that the rates established in this notice will be adequate to meet repayment criteria. The rate schedules have been developed to cover the differing marketing arrangements in the Cumberland System under normal operation conditions. The Rate Schedules CBR-1-I, CSI-1-I, and CM-1-I, include rates for customers who receive 1500 kilowatt-hours of energy annually for each kilowatt of capacity. Rate Schedule CEK-1-I is for East Kentucky Power Cooperative, which receives a fixed quantity of energy annually from projects connected to the TVA transmission system plus the output of the Laurel Project. Rate Schedule CK-1-I is for customers in Kentucky who receive 1800 kilowatt-hours of energy annually for each kilowatt of capacity. Rate Schedule CC-1-J is for customers on the Duke Energy Progress, Western Division, (formerly Carolina Power & Light, Western Division). Rate Schedule CTV-1-I is for TVA and TVPPA. Rate Schedule CTVI-1-B is for customers inside the TVA system who choose a power supplier other than TVA. [[Page 59743]] Dated: September 25, 2015. Elizabeth Sherwood-Randall, Deputy Secretary. DEPARTMENT OF ENERGY DEPUTY SECRETARY In the Matter of: Southeastern Power Administration Cumberland System Rates Rate Order No. SEPA-59 Order Confirming and Approving Power Rates on an Interim Basis Pursuant to Sections 302(a) and 301(b) of the Department of Energy Organization Act, Public Law 95-91, the functions of the Secretary of the Interior and the Federal Power Commission under Section 5 of the Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern Power Administration (Southeastern or SEPA) were transferred to and vested in the Secretary of Energy. DOE Delegation Order No. 00-037.00A, effective October 25, 2013, granted the Deputy Secretary authority to confirm, approve, and place into effect Southeastern's rates on an interim basis. This rate order is issued by the Deputy Secretary pursuant to this delegation. Background On December 22, 2011, the Commission issued an order approving Rate Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3 on a final basis for the sale of power from the Cumberland System (137 FERC ] 62,249). On July 10, 2013, the Deputy Secretary of the Department of Energy issued an order extending the rate schedules through September 30, 2015. The power marketing policy (58 FR 41762, Aug. 5, 1993) provides peaking capacity, along with 1500 kilowatt-hours of energy with each kilowatt of capacity, to customers outside the Tennessee Valley Authority (TVA) transmission system. Due to restrictions on the operations of the Center Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern has not been able to provide full peaking capacity to these customers. A revised interim operating plan for the Cumberland System provides these customers with energy and reduced capacity. Public Notice and Comment Notice of a proposed rate adjustment was published in the Federal Register May 28, 2015 (80 FR 30451). The notice advised interested parties of a public information and comment forum to be held in Nashville, Tennessee, on June 30, 2015. Comments were received from twelve sources pursuant to this notice. The comments have been condensed into the following seven major categories: 1. Dam Safety Act 2. Rate Development Authority 3. Rate Term 4. Rate Competitiveness 5. Revenue Requirement Mitigation 6. Capital Cost Recovery 7. Transmission Arrangements Southeastern's response follows each comment. 1. Dam Safety Act Comment: To prevent detrimental and long-term consequences related to the shifting of inappropriate and/or unnecessary costs to Cumberland System hydropower preference customers, we politely request a permanent 15 percent cost allocation to be used in order to provide closure to the uncertainty of the applicability of the Dam Safety Act for repairs to Wolf Creek and Center Hill. . The record the Corps of Engineers has developed reveals the repairs at Wolf Creek and Center Hill Projects were pursued in an expedited manner in the interest of protecting the safety of lives and property downstream of Wolf Creek and Center Hill. The Corps of Engineers repaired the Wolf Creek Project and will fix the Center Hill Project consistent with state of the art criteria to protect safety. As such, hydropower customers should not be saddled with the full cost of over $1 billion in repairs. The Dam Safety Act acknowledges this broad benefit and allows repair costs to be fairly allocated among all beneficiaries Southeastern retains the right to structure a proposed rate which allows for the consideration of the cost reimbursement provisions of the Dam Safety Act. The Corps of Engineers' refusal to abide by the statutory provisions of the Dam Safety Act creates liability for the federal family because of the agency's admitted and flagrant disavowal of its statutory duty. There is no legal consequence for Southeastern if it develops a rate using the Dam Safety Act as appropriate guidance. Response: Under section 1203 of the Water Resources Development Act of 1986, otherwise known as the Dam Safety Act, Congress capped the percentage of dam repair costs that may be assigned to project purposes (such as hydropower) at 15 percent. This cap applies to dam modification costs, ''the cause of which results from new hydrologic or seismic data or changes in the state-of-the-art design or construction criteria deemed necessary for safety purposes''. 33 U.S.C. 467n(a). The Dam Safety Act requires that dam safety repair costs be recovered within thirty years of completion of the work. If the Dam Safety Act is not applied, 100 percent of all costs are assigned to project purposes for cost recovery but the thirty-year cost recovery requirement does not attach. Southeastern continues to discuss, analyze and seek guidance on the issue from other relevant agencies. Southeastern is finalizing a rate calculation that applies the cost sharing provision of the Dam Safety Act to the repair costs at Wolf Creek and Center Hill. However, Southeastern wishes to make clear that interagency discussions of this issue remain ongoing. If, as a result of those discussions, other relevant federal agencies provide a factual and legal basis for a contrary determination, the applicability of the Dam Safety Act would be reconsidered. Any such reconsideration would be the subject of an additional notice and comment process. 2. Rate Development Authority Comment: SEPA and the Department of Energy have explicit responsibility to ensure unauthorized costs are not passed on to the power customers. This authority exists to ensure all appropriate costs are recovered in the rates. Response: Southeastern agrees that it retains full authority to ensure that the rates for power will be the lowest possible rates consistent with sound business principles within the meaning of Section 5 of the Flood Control Act of 1944. Comment: There is no genuine question whether the proposed rate has been promulgated pursuant to authority squarely vested within the administrative PMA. Furthermore, because the rate established pursuant to this process presents a legal obligation for the customers, i.e., the level of payment that must be submitted in exchange for the delivery of electricity, there's no question that the rate-making exercise should be considered the development of a rule for purposes of applying fundamental tenets of administrative law. Response: Southeastern determines the power rates regarding surplus energy from Corps projects are consistent with the rulemaking requirements of the Administrative Procedure Act. Southeastern is finalizing a rate calculation that applies the cost sharing provision of the Dam Safety Act to the repair costs at Wolf Creek and Center Hill. However, Southeastern wishes to make clear that interagency discussions of this issue remain ongoing. If, as a result of those [[Page 59744]] discussions, other relevant federal agencies provide a factual and legal basis for a contrary determination, the applicability of the Dam Safety Act would be reconsidered. Any such reconsideration would be the subject of an additional notice and comment process. Comment: Southeastern retains the right to structure a proposed rate which allows for the consideration of the cost reimbursement provisions of the Dam Safety Act. [Commenter] believes there is no legal consequence for Southeastern if it develops a rate using the Dam Safety Act as appropriate guidance. Response: Southeastern has a statutory duty to balance the recovery of costs of the Corps projects in a reasonable number of years while providing the lowest possible rates to preference customers consistent with sound business principles. Southeastern is finalizing a rate calculation that applies the cost sharing provision of the Dam Safety Act to the repair costs at Wolf Creek and Center Hill. However, Southeastern wishes to make clear that interagency discussions of this issue remain ongoing. If, as a result of those discussions, other relevant federal agencies provide a factual and legal basis for a contrary determination, the applicability of the Dam Safety Act would be reconsidered. Any such reconsideration would be the subject of an additional notice and comment process. Comment: The Corps of Engineers' refusal to abide by the statutory provisions of the Dam Safety Act creates liability for the federal family because of the agency's admitted and flagrant disavowal of its statutory duty. The Corps of Engineers has no legal authority to recover the costs of its dam safety program from hydropower customers. Response: Recovery of the costs of the Corps of Engineers projects from surplus power is within the authority of Department of Energy as provided by the Flood Control Act of 1944 and the Department of Energy Organization Act. Southeastern is finalizing a rate calculation that applies the cost sharing provision of the Dam Safety Act to the repair costs at Wolf Creek and Center Hill. However, Southeastern wishes to make clear that interagency discussions of this issue remain ongoing. If, as a result of those discussions, other relevant federal agencies provide a factual and legal basis for a contrary determination, the applicability of the Dam Safety Act would be reconsidered. Any such reconsideration would be the subject of an additional notice and comment process. 3. Rate Term Comment: [Commenter] respectfully requests this rate is extended for five years to ensure accurate planning and reliability. There's no legal impediment for Southeastern to issue a five-year rate consistent with DOE Regulation RA6120.2. [Commenter] will ask Southeastern to revise the proposal for a five-year rate. Response: Southeastern agrees a five-year term for the rate schedules is appropriate for the following reasons. Southeastern updates the repayment study used to develop and support the rate schedules annually to incorporate the latest cost information provided and to incorporate actual operating results. If the update of the repayment study demonstrates that the rates are not adequate to recover costs, Southeastern can initiate a rate adjustment. A five-year rate can be modified before the term of the rate schedules expires. A five- year term for the rate schedules will not interfere with Southeastern's ability to recover required costs. 4. Rate Competitiveness Comment: Even the current rate proposal is too high to provide an economic product. SEPA rates with the proposed increase would be basically out of the market for most of our customers that have alternatives. The increased cost and declining economic viability of this power have been a major concern for the past several years. Coupled with more frequent reductions in Cumberland System power production and decreases in hydropower unit availability, these increases in cost are aggravating and jeopardizing the future of this program. Response: Consistent with applicable law, Southeastern strives to ensure that the rates for Cumberland System power remain competitive with the customers' resource alternatives. Marketing arrangements in the Cumberland System cover diverse markets and include diverse products. The existing marketing arrangements have been in place since the power marketing policy for the Cumberland System was established in 1983. Southeastern has incorporated a true-up mechanism in these rate schedules to reduce the initial rate adjustment to a seven percent increase in the revenue requirement. This has been included to improve the competitiveness of the rate. 5. Revenue Requirement Mitigation Comment: [Commenter] would propose an approach where we pay our fair share of the operation and maintenance costs and the recovery of capital [investment] making it more reflective of the rates being set on actual costs instead of a 50-year projection. SEPA is setting a rate for 50 years with no consideration for a potential increase in the future. We would propose paying for the capital [investment] when it becomes used and useful. Response: The Power Marketing Administrations prepare repayment studies used to establish rates following the guidance of DOE Order RA6120.2 (Order). The Order defines the power system's repayment period to extend to the final year allowed under the cost recovery criteria for amortization of the original investment in all projects included in the power repayment study. The Order further provides future replacement costs will be included in the studies. The remaining investment in the Cumberland System includes investment placed in service with a 50-year service life. The Order requires future replacement cost estimates to be included in the repayment study as well. Southeastern believes the repayment study used to develop these proposed rate schedules complies with DOE Order RA6120.2. Comment: [Commenter] recommends that SEPA review the methodology used in the repayment study to determine the proposed rate to: One, use forced payments to reduce the magnitude of large required payments; and Two, for large required payments, use the concept of planned capitalized deficits to spread the costs of those required single-year payments over a five-year period. Response: The comment refers to the approach used within the repayment study used to develop an optimized plan for repayment of the federal investment. Forced payments are normally used to override the normal priority of repayment when a lower-interest rate investment is reaching its required repayment date. Under highest interest first repayment, Southeastern defers repayment of the lowest interest rate investment to the extent possible while meeting repayment criteria. This achieves a lower revenue requirement. Capitalized deficits are incurred when Southeastern does not have sufficient revenue to cover annual operating expenses and interest or meet a required payment. Generally, Southeastern does not plan to incur capitalized deficits as part of rate adjustment. The proposed rates do not include capitalized deficits, which would be inconsistent with the [[Page 59745]] general requirement of DOE Order RA6120.2. 6. Capital Cost Recovery Comment: [Commenter] suggests SEPA explore capital cost recovery alternatives within its rate-making authority with the goal remaining to keep rates as low as possible for as long as possible. SEPA should consider a true-up rate as an alternative. Response: Southeastern staff proposed to employ an annual true-up to alter the rate each April accounting for actual hydropower investment completed and placed in service the prior fiscal year. A similar mechanism proved successful in the Kerr-Philpott System to address planned infrastructure rehabilitation. Comments supported or were silent with regard to enacting a true-up and Southeastern proposes to affect a true-up instrument to improve Federal hydropower's competitiveness in the energy market. 7. Transmission Arrangements Comment: We would suggest SEPA explore an agreement with TVA that more closely resembles the transmission service that SEPA now receives from TVA, delivering power to discrete delivery points from a network of resources or generation resources. We think the service you've received for years has been more of a network service. Response: Southeastern will discuss transmission service options with TVA in an effort to secure the most economical delivery method for our customers. Discussion System Repayment An examination of Southeastern's revised system power repayment study, prepared in August, 2015, for the Cumberland System, shows that with the rates established in this notice, all system power costs are paid within the 50-year repayment period, as required by existing law and DOE Order RA 6120.2. The Administrator of Southeastern has certified that the rates are consistent with applicable law and that they are the lowest possible rates to customers consistent with sound business principles. Environmental Impact Southeastern has reviewed the possible environmental impacts of the rate adjustment under consideration and has concluded that, because the adjusted rates would not significantly affect the quality of the human environment within the meaning of the National Environmental Policy Act of 1969, the proposed action is not a major Federal action for which preparation of an Environmental Impact Statement is required. Availability of Information Information regarding these rates, including studies, and other supporting materials, is available for public review in the offices of Southeastern Power Administration, 1166 Athens Tech Road, Elberton, Georgia 30635-6711. Submission to the Federal Energy Regulatory Commission The rates hereinafter confirmed and approved on an interim basis, together with supporting documents, will be submitted promptly to FERC for confirmation and approval on a final basis. Order In view of the foregoing and pursuant to the authority delegated to me by the Secretary of Energy, I hereby confirm and approve on an interim basis, effective October 1, 2015, attached Wholesale Power Rate Schedules CBR-1-I, CSI-1-I, CEK-1-I, CM-1-I, CC-1-J, CK-1-I, CTV-1-I, CTVI-1-B, and Replacement-3. The rate schedules shall remain in effect on an interim basis through September 30, 2020, unless such period is extended or until FERC confirms and approves them or substitute rate schedules on a final basis. Dated: September 25, 2015. Elizabeth Sherwood-Randall, Deputy Secretary. Wholesale Power Rate Schedule CBR-1-I Availability: This rate schedule shall be available to Big Rivers Electric Corporation and the City of Henderson, Kentucky (hereinafter called the Customer). Applicability: This rate schedule shall be applicable to electric capacity and energy available from the Dale Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereinafter called collectively the ``Cumberland Projects'') and sold in wholesale quantities. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 hertz. The power shall be delivered at nominal voltages of 13,800 volts and 161,000 volts to the transmission system of Big Rivers Electric Corporation. Points of Delivery: Capacity and energy delivered to the Customer will be delivered at points of interconnection of the Customer at the Barkley Project Switchyard, at a delivery point in the vicinity of the Paradise steam plant and at such other points of delivery as may hereafter be agreed upon by the Government and Tennessee Valley Authority (TVA). Billing Month: The billing month for power sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective, on the last day of each calendar month. Conditions of Service: The Customer shall at its own expense provide, install, and maintain on its side of each delivery point the equipment necessary to protect and control its own system. In so doing, the installation, adjustment, and setting of all such control and protective equipment at or near the point of delivery shall be coordinated with that which is installed by and at the expense of TVA on its side of the delivery point. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: [[Page 59746]] Initial Base Demand charge: $1.902 per kilowatt per month Initial Base Energy Charge: 12.35 mills per kilowatt-hour True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission: The Customer will pay a ratable percent listed below of the credit the Administrator of Southeastern Power Administration (Administrator) provides to the TVA as consideration for delivering capacity and energy for the account of the Administrator to points of delivery of customers outside the TVA System or interconnection points of delivery with other electric systems for the benefit of customers outside the TVA System, as agreed by contract between the Administrator and TVA. ------------------------------------------------------------------------ Percent ------------------------------------------------------------------------ Big Rivers Electric Corporation.............................. 32.660 City of Henderson, Kentucky.................................. 2.202 ------------------------------------------------------------------------ Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. This Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The annual revenue requirement and rates under this scenario 2 will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario 2, the adjustment is an increase of $53,000 per year to the annual revenue requirement for each increase of $1,000,000 to specific power plant-in-service. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge (includes 1500 hours of energy annually): $3.115 per kilowatt/month of total contract demand. Initial Base Energy Charge: None. Initial Base Additional Energy Charge: 1.612 mills per kilowatt- hour. True-up Adjustment: The base demand charge and base additional energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in- service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the additional energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission Charge: Monthly TVA Transmission Charge divided by 545,000. Energy to be Furnished by the Government: The Government shall make available each contract year to the Customer from the Projects through the Customer's interconnections with TVA and the Customer will schedule and accept an allocation of 1500 kilowatt-hours of energy delivered at the TVA border for each kilowatt of contract demand. A contract year is defined as the 12 months beginning July 1 and ending at midnight June 30 of the following calendar year. The energy made available for a contract year shall be scheduled monthly such that the maximum amount scheduled in any month shall not exceed 240 hours per kilowatt of the Customer's contract demand and the minimum amount scheduled in any month shall not be less than 60 hours per kilowatt of the customer's contract demand. The Customer may request and the Government may approve energy scheduled for a month greater than 240 hours per kilowatt of the Customer's contract demand; provided, that the combined schedule of all Southeastern customers outside TVA and served by TVA does not exceed 240 hours per kilowatt of the total contract demands of these customers. Service Interruption: When delivery of capacity is interrupted or reduced due to conditions on the Administrator's system beyond his control, the Administrator will continue to make available the portion of his declaration of energy that can be generated with the capacity available. For such interruption or reduction due to conditions on the Administrator's system which have not been arranged for and agreed to in advance, the demand charge for capacity made available will be reduced as to the kilowatts of such capacity which have been interrupted or reduced in accordance with the following formula: [GRAPHIC] [TIFF OMITTED] TN02OC15.012 [[Page 59747]] Wholesale Power Rate Schedule CSI-1-I Availability: This rate schedule shall be available to Southern Illinois Power Cooperative (hereinafter the Customer). Applicability: This rate schedule shall be applicable to electric capacity and energy available from the Dale Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereinafter called collectively the ``Cumberland Projects'') and sold in wholesale quantities. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 hertz. The power shall be delivered at nominal voltages of 13,800 volts and 161,000 volts to the transmission system of Big Rivers Electric Corporation. Points of Delivery: Capacity and energy delivered to the Customer will be delivered at points of interconnection of the Customer at the Barkley Project Switchyard, at a delivery point in the vicinity of the Paradise steam plant and at such other points of delivery as may hereafter be agreed upon by the Government and Tennessee Valley Authority (TVA). Billing Month: The billing month for power sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective, on the last day of each calendar month. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $1.902 per kilowatt per month. Initial Base Energy Charge: 12.35 mills per kilowatt-hour. True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission Charge: The Customer will pay 5.138 percent of the credit the Administrator of Southeastern Power Administration (Administrator) provides to the TVA as consideration for delivering capacity and energy for the account of the Administrator to points of delivery of customers outside the TVA System or interconnection points of delivery with other electric systems for the benefit of customers outside the TVA System, as agreed by contract between the Administrator and TVA. Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. This Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The annual revenue requirement and rates under this scenario 2 will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario 2, the adjustment is an increase of $53,000 per year to the annual revenue requirement for each increase of $1,000,000 to specific power plant-in-service. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge (includes 1500 hours of energy annually): $3.115 per kilowatt/month of total contract demand. Initial Base Energy Charge: None. Initial Base Additional Energy Charge: 11.612 mills per kilowatt- hour True-up Adjustment: The base demand charge and base additional energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in- service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the additional energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission Charge: Monthly TVA Transmission Charge divided by 545,000. Energy to be Furnished by the Government: The Government shall make available each contract year to the Customer from the Projects through the Customer's interconnections with TVA and the Customer will schedule and accept an allocation of 1500 kilowatt-hours of energy delivered at the TVA [[Page 59748]] border for each kilowatt of contract demand. A contract year is defined as the 12 months beginning July 1 and ending at midnight June 30 of the following calendar year. The energy made available for a contract year shall be scheduled monthly such that the maximum amount scheduled in any month shall not exceed 240 hours per kilowatt of the Customer's contract demand and the minimum amount scheduled in any month shall not be less than 60 hours per kilowatt of the customer's contract demand. The Customer may request and the Government may approve energy scheduled for a month greater than 240 hours per kilowatt of the Customer's contract demand; provided, that the combined schedule of all Southeastern customers outside TVA and served by TVA does not exceed 240 hours per kilowatt of the total contract demands of these customers. Service Interruption: When delivery of capacity is interrupted or reduced due to conditions on the Administrator's system beyond his control, the Administrator will continue to make available the portion of his declaration of energy that can be generated with the capacity available. For such interruption or reduction due to conditions on the Administrator's system which have not been arranged for and agreed to in advance, the demand charge for capacity made available will be reduced as to the kilowatts of such capacity which have been interrupted or reduced in accordance with the following formula: [GRAPHIC] [TIFF OMITTED] TN02OC15.013 Wholesale Power Rate Schedule CEK-1-I Availability: This rate schedule shall be available to East Kentucky Power Cooperative (hereinafter called the Customer). Applicability: This rate schedule shall be applicable to electric capacity and energy available from the Dale Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereinafter called collectively the ``Cumberland Projects'') and power available from the Laurel Project and sold in wholesale quantities. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 hertz. The power shall be delivered at nominal voltages of 161,000 volts to the transmission systems of the Customer. Points of Delivery: The points of delivery will be the 161,000 volt bus of the Wolf Creek Power Plant and the 161,000 volt bus of the Laurel Project. Other points of delivery may be as agreed upon. Billing Month: The billing month for power sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective, on the last day of each calendar month. Conditions of Service: The Customer shall, at its own expense, provide, install, and maintain on its side of each delivery point the equipment necessary to protect and control its own system. In so doing, the installation, adjustment and setting of all such control and protective equipment at or near the point of delivery shall be coordinated with that which is installed by and at the expense of the Tennessee Valley Authority (TVA) on its side of the delivery point. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $1.902 per kilowatt per month. Initial Base Energy Charge: 12.35 mills per kilowatt-hour. True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission: The Customer will pay 31.192 percent of the credit the Administrator of Southeastern Power Administration (Administrator) provides to the TVA as consideration for delivering capacity and energy for the account of the Administrator to points of delivery of customers outside the TVA System or interconnection points of delivery with other electric systems for the benefit customers outside the TVA System, as agreed by contract between the Administrator and TVA. Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be [[Page 59749]] scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. The Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described in the true-up section of this rate schedule. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $1.664 per kilowatt/month of total contract demand. Initial Base Energy Charge: 11.612 mills per kilowatt-hour True-up Adjustment: The base demand charge and base energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in-service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $ 0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission Charge: Monthly TVA Transmission Charge divided by 545,000. Energy to be Furnished by the Government: The Government shall make available each contract year to the Customer from the Projects through the Customer's interconnections with TVA and the Customer will schedule and accept an allocation of 1500 kilowatt-hours of energy delivered at the TVA border for each kilowatt of contract demand plus 369 kilowatt- hours of energy delivered for each kilowatt of contract demand to supplement energy available at the Laurel Project. A contract year is defined as the 12 months beginning July 1 and ending at midnight June 30 of the following calendar year. The energy made available for a contract year shall be scheduled monthly such that the maximum amount scheduled in any month shall not exceed 240 hours per kilowatt of the Customer's contract demand and the minimum amount scheduled in any month shall not be less than 60 hours per kilowatt of the Customer's contract demand. The Customer may request and the Government may approve energy scheduled for a month greater than 240 hours per kilowatt of the customer's contract demand; provided, that the combined schedule of all Southeastern customers outside TVA and served by TVA does not exceed 240 hours per kilowatt of the total contract demands of these customers. Service Interruption: When delivery of capacity is interrupted or reduced due to conditions on the Administrator's system beyond his control, the Administrator will continue to make available the portion of his declaration of energy that can be generated with the capacity available. For such interruption or reduction due to conditions on the Administrator's system which have not been arranged for and agreed to in advance, the demand charge for capacity made available will be reduced as to the kilowatts of such capacity which have been interrupted or reduced in accordance with the following formula: [GRAPHIC] [TIFF OMITTED] TN02OC15.014 Wholesale Power Rate Schedule CM-1-I Availability: This rate schedule shall be available to the South Mississippi Electric Power Association, Municipal Energy Agency of Mississippi, and Mississippi Delta Energy Agency (hereinafter called the Customers). Applicability: This rate schedule shall be applicable to electric capacity and energy available from the Dale Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereinafter called collectively the ``Cumberland Projects'') and sold in wholesale quantities. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 hertz. The power shall be delivered at nominal voltages of 161,000 volts to the transmission systems of Mississippi Power and Light. Points of Delivery: The points of delivery will be at interconnection points of the Tennessee Valley Authority (TVA) system and the Mississippi Power and Light system. Other points of delivery may be as agreed upon. Billing Month: The billing month for power sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective on the last day of each calendar month. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours [[Page 59750]] of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $1.902 per kilowatt per month. Initial Base Energy Charge: 12.35 mills per kilowatt-hour. True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Transmission Charge: The Customer will pay a ratable percent listed below of the credit the Administrator of Southeastern Power Administration (Administrator) provides to the TVA as consideration for delivering capacity and energy for the account of the Administrator to points of delivery of customers outside the TVA System or interconnection points of delivery with other electric systems for the benefit of customers outside the TVA System, as agreed by contract between the Administrator and TVA. ------------------------------------------------------------------------ Percent ------------------------------------------------------------------------ Mississippi Delta Energy Agency.............................. 2.058 Municipal Energy Agency of Mississippi....................... 3.447 South Mississippi EPA........................................ 9.358 ------------------------------------------------------------------------ Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. This Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The annual revenue requirement and rates under this scenario 2 will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario 2, the adjustment is an increase of $53,000 per year to the annual revenue requirement for each increase of $1,000,000 to specific power plant-in-service. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge (includes 1500 hours of energy annually): $3.115 per kilowatt/month of total contract demand. Initial Base Energy Charge: None. Initial Base Additional Energy Charge: 11.612 mills per kilowatt- hour. True-up Adjustment:The base demand charge and base additional energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in- service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $ 0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the additional energy rate. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Transmission Charge: Monthly TVA Transmission Charge divided by 545,000. Energy to be Furnished by the Government: The Government shall make available each contract year to the Customer from the Projects through the Customer's interconnections with TVA and the Customer will schedule and accept an allocation of 1500 kilowatt-hours of energy delivered at the TVA border for each kilowatt of contract demand. A contract year is defined as the 12 months beginning July 1 and ending at midnight June 30 of the following calendar year. The energy made available for a contract year shall be scheduled monthly such that the maximum amount scheduled in any month shall not exceed 240 hours per kilowatt of the Customer's contract demand and the minimum amount scheduled in any month shall not be less than 60 hours per kilowatt of the Customer's contract demand. The Customer may request and the Government may approve energy scheduled for a month greater than 240 hours per kilowatt of the Customer's contract demand; provided, that the combined schedule of all Southeastern customers outside TVA and served by TVA does not exceed 240 hours per kilowatt of the total contract demands of these customers. In the event that any portion of the capacity allocated to the Customers is not initially delivered to the Customers as of the beginning of a full contract year, the 1500 kilowatt hours shall be reduced \1/12\ for each month of that year prior to initial delivery of such capacity. Service Interruption: When delivery of capacity is interrupted or reduced due to conditions on the Administrator's system beyond his control, the Administrator will continue to make available the portion of his declaration of energy that can be generated with the capacity available. For such interruption or reduction due to conditions on the Administrator's system which have not been arranged for and agreed to in advance, the demand charge for capacity made available will be reduced as to the kilowatts of such capacity which have been interrupted or reduced [[Page 59751]] in accordance with the following formula: [GRAPHIC] [TIFF OMITTED] TN02OC15.015 Wholesale Power Rate Schedule CC-1-J Availability: This rate schedule shall be available to public bodies and cooperatives served through the facilities of Duke Energy Progress (formerly known as Carolina Power & Light Company), Western Division (hereinafter called the Customers). Applicability: This rate schedule shall be applicable to electric capacity and energy available from the Dale Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereinafter called collectively the ``Cumberland Projects'') and sold in wholesale quantities. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 hertz. The power shall be delivered at nominal voltages of 161,000 volts to the transmission system of Duke Energy Progress, Western Division. Points of Delivery: The points of delivery will be at interconnecting points of the Tennessee Valley Authority (TVA) system and the Duke Energy Progress, Western Division system. Other points of delivery may be as agreed upon. Billing Month: The billing month for power sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective, on the last day of each calendar month. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $2.165 per kilowatt per month. Initial Base Energy Charge: 12.35 mills per kilowatt-hour. True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. TVA Transmission Charge: The Customer will pay a ratable percent listed below of the credit the Administrator of Southeastern Power Administration (Administrator) provides to the TVA as consideration for delivering capacity and energy for the account of the Administrator to points of delivery of customers outside the TVA System or interconnection points of delivery with other electric systems for the benefit of customers outside the TVA System, as agreed by contract between the Administrator and TVA. ------------------------------------------------------------------------ Percent ------------------------------------------------------------------------ French Broad EMC............................................. 1.713 Haywood EMC.................................................. 0.501 Town of Waynesville.......................................... 0.355 ------------------------------------------------------------------------ Duke Energy Progress Transmission Charge: The Customer will pay a ratable percent listed below of the charge for transmission service furnished by Duke Energy Progress, Western Division. ------------------------------------------------------------------------ Percent ------------------------------------------------------------------------ French Broad EMC............................................. 66.667 Haywood EMC.................................................. 19.512 Town of Waynesville.......................................... 13.821 ------------------------------------------------------------------------ Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. This Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The annual revenue requirement and rates under this scenario 2 will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario 2, the adjustment is an increase of $53,000 per year to the annual revenue requirement for each [[Page 59752]] increase of $1,000,000 to specific power plant-in-service. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge (includes 1500 hours of energy annually at the TVA Border): $3.546 per kilowatt/month of total contract demand. Initial Base Energy Charge: None. Initial Base Additional Energy Charge: 11.612 mills per kilowatt- hour. True-up Adjustment: The base demand charge and base additional energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in- service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $ 0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the additional energy rate. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Transmission Charge: Monthly TVA Transmission Charge divided by 545,000, and adjusted for Duke Energy Progress delivery. The adjustment under the current contract is 14,000/12,300, or 13.821 percent. CP&L Transmission Charge: $1.546 per kilowatt/month of total contract demand (As of February 2015 and provided for illustrative purposes.) The Duke Energy Progress transmission rate is subject to annual adjustment on April 1 of each year and will be computed subject to the formula in Appendix A attached to the Government--Duke Energy Progress contract. Energy to be Furnished by the Government: The Government will sell to the Customers and the Customers will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to Duke Energy Progress (less applicable losses). The Customer's contract demand and accompanying energy allocation will be divided pro rata among its individual delivery points served from the Duke Energy Progress, Western Division transmission system. Wholesale Power Rate Schedule CK-1-I Availability: This rate schedule shall be available to public bodies served through the facilities of Kentucky Utilities Company, (hereinafter called the Customers.) Applicability: This rate schedule shall be applicable to electric capacity and energy available from the Dale Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereinafter called collectively the ``Cumberland Projects'') and sold in wholesale quantities. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 hertz. The power shall be delivered at nominal voltages of 161,000 volts to the transmission systems of Kentucky Utilities Company. Points of Delivery: The points of delivery will be at interconnecting points between the Tennessee Valley Authority (TVA) system and the Kentucky Utilities Company system. Other points of delivery may be as agreed upon. Billing Month: The billing month for power sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective on the last day of each calendar month. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $1.902 per kilowatt per month. Initial Base Energy Charge: 12.35 mills per kilowatt-hour. True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Transmission Charge: The Customers will pay a ratable percent listed below of the credit the Administrator of Southeastern Power Administration (Administrator) provides to the TVA as consideration for delivering capacity and energy for the account of the Administrator to points of delivery of customers outside the TVA System or interconnection points of delivery with other electric systems for the benefit of customers outside the TVA System, as agreed by contract between the Administrator and TVA. ------------------------------------------------------------------------ Percent ------------------------------------------------------------------------ City of Barbourville......................................... 0.404 City of Bardstown............................................ 0.412 City of Bardwell............................................. 0.099 City of Benham............................................... 0.046 City of Corbin............................................... 0.477 City of Falmouth............................................. 0.108 City of Frankfort............................................ 2.866 City of Madisonville......................................... 1.432 City of Nicholasville........................................ 0.469 City of Owensboro............................................ 4.587 City of Paris................................................ 0.250 [[Page 59753]] City of Providence........................................... 0.226 ------------------------------------------------------------------------ Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. This Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The annual revenue requirement and rates under this scenario 2 will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario 2, the adjustment is an increase of $53,000 per year to the annual revenue requirement for each increase of $1,000,000 to specific power plant-in-service. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge (includes 1500 hours of energy annually): $2.915 per kilowatt/month of total contract demand. Initial Base Energy Charge: None. Initial Base Additional Energy Charge: 11.612 mills per kilowatt- hour. True-up Adjustment: The base demand charge and base additional energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in- service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $ 0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the additional energy rate. Southeastern will give written notice to the Customers of the amount of the true-up by February 1 of each year. Transmission Charge: Monthly TVA Transmission Charge divided by 545,000. Energy To Be Furnished by the Government: The Government shall make available each contract year to the Customer from the Projects and the Customer will accept an allocation of 1500 kilowatt-hours of energy for each kilowatt of contract demand. A contract year is defined as the 12 months beginning July 1 and ending at midnight June 30 of the following calendar year. The energy made available for a contract year shall be scheduled monthly such that the maximum amount scheduled in any month shall not exceed 240 hours per kilowatt of the Customer's contract demand and the minimum amount scheduled in any month shall not be less than 60 hours per kilowatt of the Customer's contract demand. The Customers may request and the Government may approve energy scheduled for a month greater than 240 hours per kilowatt of the Customer's contract demand; provided, that the combined schedule of all Southeastern customers outside TVA and served by TVA does not exceed 240 hours per kilowatt of the total contract demands of these customers. In the event that any portion of the capacity allocated to the Customers is not initially delivered to the Customers as of the beginning of a full contract year, the 1500 kilowatt hours shall be reduced \1/12\ for each month of that year prior to initial delivery of such capacity. For billing purposes, each kilowatt of capacity will include 1500 kilowatt-hours energy per year. Customers will pay for additional energy at the additional energy rate. Wholesale Power Rate Schedule CTV-1-I Availability: This rate schedule shall be available to the Tennessee Valley Authority (hereinafter called TVA) on behalf of members of the Tennessee Valley Public Power Association (hereinafter called TVPPA). Applicability: This rate schedule shall be applicable to electric capacity and energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereafter called collectively the ``Cumberland Projects'') and the Laurel Project sold under agreement between the Department of Energy and TVA. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a frequency of approximately 60 hertz at the outgoing terminals of the Cumberland Projects' switchyards. Billing Month: The billing month for capacity and energy sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective, on the last day of each calendar month. Contract Year: For purposes of this rate schedule, a contract year shall be as in Section 13.1 of the Southeastern Power Administration-- Tennessee Valley Authority Contract. Power Factor: TVA shall take capacity and energy from the Department of Energy at such power factor as will best serve TVA's system from time to time; provided, that TVA shall not impose a power factor of less than .85 lagging on the Department of Energy's facilities which requires operation contrary to good operating practice or results in overload or impairment of such facilities. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised [[Page 59754]] Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $1.902 per kilowatt per month Initial Base Energy Charge: 12.35 mills per kilowatt-hour. True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the TVA and TVPPA of the amount of the true-up by February 1 of each year. Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. This Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The annual revenue requirement and rates under this scenario 2 will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario 2, the adjustment is an increase of $53,000 per year to the annual revenue requirement for each increase of $1,000,000 to specific power plant-in-service. Southeastern will give written notice to the TVA and TVPPA of the amount of the true-up by February 1 of each year. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge (includes 1500 hours of energy annually): $3.115 per kilowatt/month of total contract demand. Initial Base Energy Charge: None. Initial Base Additional Energy Charge: 11.612 mills per kilowatt- hour. True-up Adjustment:The base demand charge and base additional energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in- service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $ 0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the additional energy rate. Southeastern will give written notice to the TVA and TVPPA of the amount of the true-up by February 1 of each year. Energy to be Made Available: The Department of Energy shall determine the energy that is available from the projects for declaration in the billing month. To meet the energy requirements of the Department of Energy's customers outside the TVA area (hereinafter called Outside Customers), 768,000 megawatt-hours of net energy shall be available annually (including 36,900 megawatt-hours of annual net energy to supplement energy available at Laurel Project). The energy requirement of the Outside Customers shall be available annually, divided monthly such that the maximum available in any month shall not exceed 240 hours per kilowatt of total Outside Customers contract demand, and the minimum amount available in any month shall not be less than 60 hours per kilowatt of total Outside Customers demand. In the event that any portion of the capacity allocated to Outside Customers is not initially delivered to the Outside Customers as of the beginning of a full contract year, (July through June), the 1500 hours, plus any such additional energy required as discussed above, shall be reduced \1/12\ for each month of that year prior to initial delivery of such capacity. The energy scheduled by TVA for use within the TVA System in any billing month shall be the total energy delivered to TVA less (1) an adjustment for fast or slow meters, if any, (2) an adjustment for Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month which is delivered to TVA under the agreement from the Cumberland Projects without charge to TVA, (3) the energy scheduled by the Department of Energy in said month for the Outside Customers plus losses of two percent [2%], and (4) station service energy furnished by TVA. Each kilowatt of capacity will include 1500 kilowatt-hours of energy per year, which is defined as base energy. Energy received in excess of 1500 kilowatt-hours per kilowatt will be subject to an additional energy charge identified in the monthly rates section of this rate schedule. Service Interruption: When delivery of capacity to TVA is interrupted or reduced due to conditions on the Department of Energy's system that are beyond its control, the Department of Energy will continue to make available the portion of its declaration of energy that can be generated with the capacity available. For such interruption or reduction (exclusive of any restrictions provided in the agreement) due to conditions on the Department of Energy's system which have not been arranged for and agreed to in advance, the demand charge for scheduled capacity made available to TVA will be reduced as to the kilowatts of such scheduled capacity which have been so interrupted or reduced for each day in accordance with the following formula: [[Page 59755]] [GRAPHIC] [TIFF OMITTED] TN02OC15.016 Wholesale Power Rate Schedule CTVI-1-B Availability: This rate schedule shall be available to customers (hereinafter called the Customer) who are or were formerly in the Tennessee Valley Authority (hereinafter called TVA) service area. Applicability: This rate schedule shall be applicable to electric capacity and energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects (all of such projects being hereafter called collectively the ``Cumberland Projects'') and the Laurel Project sold under agreement between the Department of Energy and the Customer. Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a frequency of approximately 60 hertz at the outgoing terminals of the Cumberland Projects' switchyards. Billing Month: The billing month for capacity and energy sold under this schedule shall end at 2400 hours CDT or CST, whichever is currently effective, on the last day of each calendar month. Contract Year: For purposes of this rate schedule, a contract year shall be as in Section 13.1 of the Southeastern Power Administration-- Tennessee Valley Authority Contract. Rate Alternatives: Southeastern Power Administration (Southeastern) is including three rate alternatives. All of the rate alternatives have an initial base annual revenue requirement of $63,500,000, including transmission and non-power revenue. The initial base annual revenue requirement from the sale of capacity and energy is $50,235,000. The initial base revenue requirements will be subject to annual true-up adjustment described below. Rate Scenario 1--Revised Interim Operating Plan The final marketing policy for the Cumberland System was published in the Federal Register August 5, 1993 (58 FR 41762). The marketing policy for the Cumberland System of Projects provides peaking capacity, along with 1500 hours of energy annually with each kilowatt of capacity, to customers outside the TVA transmission system. Due to restrictions on the operation of the Center Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to prevent failure of the dam, Southeastern is not able to provide the full allocation of peaking capacity to these customers. Southeastern implemented a Revised Interim Operating Plan for the Cumberland System to provide these customers with a reduced amount of energy and a reduced amount of capacity. The rates under this Scenario 1 will remain in effect for the duration of the Revised Interim Operating Plan. The initial base rates for capacity and energy will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge: $1.902 per kilowatt per month. Initial Base Energy Charge: 12.35 mills per kilowatt-hour. True-up Adjustment: The Base Capacity Charge and Base Energy Charge will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario the adjustment will be for each increase of $1,000,000 to specific power plant-in-service an increase of $0.001 per kilowatt per month added to the base capacity charge and 0.02 mills per kilowatt-hour added to the base energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission Charge: The initial charge for transmission and Ancillary Services will be the Customer's ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before the Federal Energy Regulatory Commission (FERC) or other overseeing entity involving the TVA's and other transmission provider's Open Access Transmission Tariff (OATT). Proceedings before FERC or other overseeing entity involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Rate Scenario 2--Modified Revised Interim Operating Plan This rate alternative will be implemented if a portion of the Cumberland Capacity can be scheduled, though not all the capacity in the published marketing policy can be scheduled. The initial base annual revenue requirement under this alternative is $63,500,000, including transmission and non-power revenue, the same as the annual revenue requirement in Scenarios 1 and 3. The annual revenue requirement from the sale of capacity and energy is $50,235,000. This Rate Scenario 2 will receive revenues from capacity that can be scheduled and the remainder from energy, at charges that will be determined at the time. Under Scenario 2, the cost of the TVA transmission credit will be passed to customers outside the TVA System. This rate alternative will be in effect if Southeastern chooses to modify the Revised Interim Operating Plan. The annual revenue requirement and rates under this scenario 2 will be subject to annual adjustment on April 1 of each year based on transfers of specific power investment to plant-in-service for the preceding Fiscal Year. Under this scenario 2, the adjustment is an increase of $53,000 per year to the annual revenue requirement for each increase of $1,000,000 to specific power plant-in-service. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Rate Scenario 3--Original Cumberland Marketing Policy The third rate alternative will go into effect once the Corps lifts all restrictions on the operation of the Center Hill Dam and Southeastern returns to operations that support the published marketing policy. The initial base rates for capacity, energy, and additional energy [[Page 59756]] will be subject to annual true-up adjustment described below. Monthly Rate: The initial monthly base rate for capacity and energy sold under this rate schedule shall be: Initial Base Demand charge (includes 1500 hours of energy annually): $3.115 per kilowatt/month of total contract demand. Initial Base Energy Charge: None. Initial Base Additional Energy Charge: 11.612 mills per kilowatt- hour. True-up Adjustment: The base demand charge and base additional energy charge under this scenario will be subject to annual adjustment on April 1 of each year based on transfers to specific power plant-in- service. Under this scenario 3, the adjustment is for each increase of $1,000,000 to specific power plant-in-service an increase of $ 0.003 per kilowatt per month added to the base Capacity rate and an increase of 0.012 mills per kilowatt-hour added to the additional energy rate. Southeastern will give written notice to the Customer of the amount of the true-up by February 1 of each year. Transmission Charge: The initial charge for transmission and Ancillary Services will be the Customer's ratable share of the charges for transmission, distribution, and ancillary services paid by the Government. The charges for transmission and ancillary services are governed by and subject to refund based upon the determination in proceedings before FERC or other overseeing entity involving the TVA's and other transmission provider's Open Access Transmission Tariff (OATT). Proceedings before FERC or other overseeing entity involving the OATT or the Distribution charge may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission, ancillary services, and distribution charges paid by the Government in behalf of the Customer. These charges could be recovered through a capacity charge or an energy charge, as determined by the Government. Energy to be Made Available: The energy will be scheduled by TVA and the Customer will receive their ratable share, in accordance with the Government-Customer Contract. Energy shall be accounted for, in accordance with agreements with TVA. The Customer will receive a ratable share of their capacity, in accordance with the Government-Customer Contract. Service Interruption: When delivery of capacity to TVA is interrupted or reduced due to conditions on the Department of Energy's system that are beyond its control, the Department of Energy will continue to make available the portion of its declaration of energy that can be generated with the capacity available. The customer will receive a ratable share of this capacity. For such interruption or reduction (exclusive of any restrictions provided in the agreement) due to conditions on the Department of Energy's system which have not been arranged for and agreed to in advance, the demand charge for scheduled capacity made available to the Customer will be reduced as to the kilowatts of such scheduled capacity which have been so interrupted or reduced for each day in accordance with the following formula: [GRAPHIC] [TIFF OMITTED] TN02OC15.017 Wholesale Rate Schedule Replacement--3 Availability: This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Alabama, Georgia, Illinois, Kentucky, North Carolina, Mississippi, Tennessee, and Virginia to whom power is provided pursuant to contracts between the Government and the customer from the Dale Hollow, Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest, Cordell Hull, and Laurel Projects (all of such projects being hereinafter called collectively the ``Cumberland Projects''). Applicability: This rate schedule shall be applicable to the sale of wholesale energy purchased to meet contract minimum energy sold under appropriate contracts between the Government and the Customer. Character of Service: The energy supplied hereunder will be delivered at the delivery points provided for under appropriate contracts between the Government and the Customer. Monthly Charge: The rate for replacement energy will be a formulary capacity charge based on the monthly cost to the Government to purchase replacement energy necessary to support capacity in the Cumberland System divided by the capacity available from the Cumberland System, which is 950,000 kilowatts in the published power marketing policy. The capacity rate will be adjusted for any capacity retained by the Customer's transmission facilitator. Conditions of Service: The customer shall at its own expense provide, install, and maintain on its side of each delivery point the equipment necessary to protect and control its own system. [FR Doc. 2015-25102 Filed 10-1-15; 8:45 am] BILLING CODE 6450-01-P
![59742 Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Notices
408 mgd from the Chattahoochee River • Tuesday, October 27, 2015, 4:00 SUPPLEMENTARY INFORMATION: On
for Metro Atlanta and would reallocate p.m.–7:00 p.m. Eastern time, West Point December 22, 2011, the Commission
storage in Lake Lanier of 189,497 acre- Depot, 500 3rd Avenue, West Point, GA. confirmed and approved on a final basis
feet to satisfy a portion of Georgia’s 2040 31833. Wholesale Power Rate Schedules CBR–
need and support average annual water • Wednesday, October 28, 2015, 4:00 1–H, CSI–1–H, CEK–1–H, CM–1–H, CC–
supply withdrawals of up to 165 mgd. p.m.–7:00 p.m. Central time, James S. 1–I, CK–1–H, CTV–1–H, CTVI–1–A, and
Clark Center, 333 E. Broad Street, Replacement-3 for the period from
Document Availability
Eufaula AL, 36027. October 1, 2011, to September 30, 2013
The DEIS and appendices are • Thursday, October 29, 2015, 4:00 (137 FERC ¶ 62,249). On July 10, 2013,
available to the public for review in the p.m.–7:00 p.m. Eastern time, Bainbridge
following formats: the Deputy Secretary approved an
State College, Charles H. Kirbo Regional extension of the rate schedules through
• Online as PDF documents at http:// Center, 2500 E. Shotwell Street (US
www.sam.usace.army.mil/Missions/ September 30, 2015 (78 FR 42764).
Highway 84), Bainbridge, GA 39819.
PlanningEnvironmental/ • Monday, November 9, 2015, 4:00 The Southeastern Power
ACFMasterWaterControlManualUpdate/ p.m.–7:00 p.m., Apalachicola National Administration’s power marketing
ACFDocumentLibrary.aspx. Estuarine Research Reserve, 108 Island policy (58 FR 41762, Aug. 5, 1993)
• As a CD when requested in writing Drive, Eastpoint, FL 32328. provides peaking capacity, along with
to: Commander, U.S. Army Corps of 1500 kilowatt-hours of energy with each
Engineers, Mobile District, Attn: PD–EI Next Steps
kilowatt of capacity, to customers
(ACF–EIS), P.O. Box 2288, Mobile, AL All comments will be catalogued and outside the Tennessee Valley Authority
36628. reviewed after the 60-day public
• A limited number of CD copies will (TVA) transmission system. Due to
comment period. The final EIS (FEIS) is restrictions on the operations of the
also be available at the DEIS public scheduled to be completed and filed
meetings. Center Hill Project imposed by the U.S.
with the USEPA in 2016. The Record of Army Corps of Engineers (Corps) as a
Public Review and Comment Decision, if appropriate, will be signed precaution to prevent failure of the dam,
The public comment period will following the FEIS and the Master Southeastern has not been able to
commence with the publication of this Manual is scheduled to be approved in
provide full peaking capacity to these
notice and will end 60 days after its March 2017.
customers. A revised interim operating
publication. USACE recognizes that the Dated: September 23, 2015. plan for the Cumberland System
decisions made concerning revisions to Jon J. Chytka, provides these customers with energy
the water control operations at USACE Colonel, District Commander, Mobile District, that includes a proportional percentage
projects within the ACF Basin will have U.S. Army Corps of Engineers. of normal marketed capacity.
wide-ranging effects and encourages the [FR Doc. 2015–25057 Filed 10–1–15; 8:45 am]
public to submit comments on the A current repayment study using
BILLING CODE 3720–58–P
content of the DEIS. All persons and present rates shows that revenues will
organizations that have a potential not be adequate to meet repayment
interest in the proposed action, criteria. A revised study with a revenue
DEPARTMENT OF ENERGY
including minority, low-income, requirement increase of $3,900,000, or
disadvantaged, and Native American Notice of Interim Approval for about seven percent, shows that the
groups, are urged to participate in this Southeastern Power Administration rates established in this notice will be
NEPA environmental analysis process Cumberland System adequate to meet repayment criteria.
by reviewing the DEIS and submitting The rate schedules have been developed
comments for consideration. AGENCY: Southeastern Power to cover the differing marketing
Comments may be submitted via the Administration, DOE. arrangements in the Cumberland System
following methods: ACTION: Notice of interim approval. under normal operation conditions. The
• Onsite at open houses through Rate Schedules CBR–1–I, CSI–1–I, and
comment forms; SUMMARY: The Deputy Secretary of
• Verbally through the court reporter CM–1–I, include rates for customers
Energy confirmed and approved, on an
at public meetings; interim basis, Rate Schedules CBR–1–I, who receive 1500 kilowatt-hours of
• By emailing acf-wcm@ CSI–1–I, CEK–1–I, CM–1–I, CC–1–J, energy annually for each kilowatt of
usace.army.mil; CK–1–I, CTV–1–I, CTVI–1–B, and capacity. Rate Schedule CEK–1–I is for
• By letter addressed to: Commander, Replacement-3. The rates were East Kentucky Power Cooperative,
U.S. Army Corps of Engineers, Mobile approved on an interim basis through which receives a fixed quantity of
District, Attn: PD–EI (ACF–DEIS), P.O. September 30, 2020. The new rates take energy annually from projects
Box 2288, Mobile, AL 36628. effect on October 1, 2015, and are connected to the TVA transmission
Further information regarding the subject to confirmation and approval on system plus the output of the Laurel
update of the Master Manual, including a final basis by the Federal Energy Project. Rate Schedule CK–1–I is for
all available documents, background Regulatory Commission (Commission). customers in Kentucky who receive
and historical information, and updates 1800 kilowatt-hours of energy annually
DATES: Approval of the rate schedules
is available online at the Web site given for each kilowatt of capacity. Rate
on an interim basis is effective October
above. Schedule CC–1–J is for customers on the
1, 2015, through September 30, 2020.
mstockstill on DSK4VPTVN1PROD with NOTICES
Open Houses FOR FURTHER INFORMATION CONTACT: Duke Energy Progress, Western
Open houses are scheduled to be held Virgil G. Hobbs, III, Assistant Division, (formerly Carolina Power &
at the following locations and times: Administrator, Finance & Marketing, Light, Western Division). Rate Schedule
• Monday, October 26, 2015, 4:00 Southeastern Power Administration, CTV–1–I is for TVA and TVPPA. Rate
p.m.–7:00 p.m. Eastern time, Gainesville Department of Energy, 1166 Athens Schedule CTVI–1–B is for customers
Civic Center, 830 Green Street NE., Tech Road, Elberton, Georgia 30635– inside the TVA system who choose a
Gainesville, GA 30501. 6711, (706) 213–3838. power supplier other than TVA.
VerDate Sep<11>2014 20:43 Oct 01, 2015 Jkt 238001 PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 E:\FR\FM\02OCN1.SGM 02OCN1](https://thefederalregister.org/doc/80_FR_59933/page/1.svg)
![59744 Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Notices
discussions, other relevant federal subject of an additional notice and fair share of the operation and
agencies provide a factual and legal comment process. maintenance costs and the recovery of
basis for a contrary determination, the capital [investment] making it more
3. Rate Term
applicability of the Dam Safety Act reflective of the rates being set on actual
would be reconsidered. Any such Comment: [Commenter] respectfully costs instead of a 50-year projection.
reconsideration would be the subject of requests this rate is extended for five SEPA is setting a rate for 50 years
an additional notice and comment years to ensure accurate planning and with no consideration for a potential
process. reliability. There’s no legal impediment increase in the future. We would
Comment: Southeastern retains the for Southeastern to issue a five-year rate propose paying for the capital
right to structure a proposed rate which consistent with DOE Regulation [investment] when it becomes used and
allows for the consideration of the cost RA6120.2. [Commenter] will ask useful.
reimbursement provisions of the Dam Southeastern to revise the proposal for Response: The Power Marketing
Safety Act. a five-year rate. Administrations prepare repayment
[Commenter] believes there is no legal Response: Southeastern agrees a five- studies used to establish rates following
consequence for Southeastern if it year term for the rate schedules is the guidance of DOE Order RA6120.2
develops a rate using the Dam Safety appropriate for the following reasons. (Order). The Order defines the power
Act as appropriate guidance. Southeastern updates the repayment system’s repayment period to extend to
Response: Southeastern has a study used to develop and support the the final year allowed under the cost
statutory duty to balance the recovery of rate schedules annually to incorporate recovery criteria for amortization of the
costs of the Corps projects in a the latest cost information provided and original investment in all projects
reasonable number of years while to incorporate actual operating results. If included in the power repayment study.
providing the lowest possible rates to the update of the repayment study The Order further provides future
preference customers consistent with demonstrates that the rates are not replacement costs will be included in
sound business principles. Southeastern adequate to recover costs, Southeastern the studies. The remaining investment
is finalizing a rate calculation that can initiate a rate adjustment. A five- in the Cumberland System includes
applies the cost sharing provision of the year rate can be modified before the investment placed in service with a 50-
Dam Safety Act to the repair costs at term of the rate schedules expires. A year service life. The Order requires
Wolf Creek and Center Hill. However, five-year term for the rate schedules will future replacement cost estimates to be
Southeastern wishes to make clear that not interfere with Southeastern’s ability included in the repayment study as
interagency discussions of this issue to recover required costs. well. Southeastern believes the
remain ongoing. If, as a result of those 4. Rate Competitiveness repayment study used to develop these
discussions, other relevant federal proposed rate schedules complies with
Comment: Even the current rate
agencies provide a factual and legal DOE Order RA6120.2.
proposal is too high to provide an
basis for a contrary determination, the Comment: [Commenter] recommends
economic product. SEPA rates with the
applicability of the Dam Safety Act that SEPA review the methodology used
proposed increase would be basically
would be reconsidered. Any such in the repayment study to determine the
out of the market for most of our
reconsideration would be the subject of proposed rate to:
customers that have alternatives. The
an additional notice and comment increased cost and declining economic One, use forced payments to reduce
process. viability of this power have been a major the magnitude of large required
Comment: The Corps of Engineers’ concern for the past several years. payments; and
refusal to abide by the statutory Coupled with more frequent reductions Two, for large required payments, use
provisions of the Dam Safety Act creates in Cumberland System power the concept of planned capitalized
liability for the federal family because of production and decreases in deficits to spread the costs of those
the agency’s admitted and flagrant hydropower unit availability, these required single-year payments over a
disavowal of its statutory duty. increases in cost are aggravating and five-year period.
The Corps of Engineers has no legal jeopardizing the future of this program. Response: The comment refers to the
authority to recover the costs of its dam Response: Consistent with applicable approach used within the repayment
safety program from hydropower law, Southeastern strives to ensure that study used to develop an optimized
customers. the rates for Cumberland System power plan for repayment of the federal
Response: Recovery of the costs of the remain competitive with the customers’ investment. Forced payments are
Corps of Engineers projects from surplus resource alternatives. Marketing normally used to override the normal
power is within the authority of arrangements in the Cumberland System priority of repayment when a lower-
Department of Energy as provided by cover diverse markets and include interest rate investment is reaching its
the Flood Control Act of 1944 and the diverse products. The existing required repayment date. Under highest
Department of Energy Organization Act. marketing arrangements have been in interest first repayment, Southeastern
Southeastern is finalizing a rate place since the power marketing policy defers repayment of the lowest interest
calculation that applies the cost sharing for the Cumberland System was rate investment to the extent possible
provision of the Dam Safety Act to the established in 1983. while meeting repayment criteria. This
repair costs at Wolf Creek and Center Southeastern has incorporated a true- achieves a lower revenue requirement.
Hill. However, Southeastern wishes to up mechanism in these rate schedules to Capitalized deficits are incurred when
mstockstill on DSK4VPTVN1PROD with NOTICES
make clear that interagency discussions reduce the initial rate adjustment to a Southeastern does not have sufficient
of this issue remain ongoing. If, as a seven percent increase in the revenue revenue to cover annual operating
result of those discussions, other requirement. This has been included to expenses and interest or meet a required
relevant federal agencies provide a improve the competitiveness of the rate. payment. Generally, Southeastern does
factual and legal basis for a contrary not plan to incur capitalized deficits as
determination, the applicability of the 5. Revenue Requirement Mitigation part of rate adjustment. The proposed
Dam Safety Act would be reconsidered. Comment: [Commenter] would rates do not include capitalized deficits,
Any such reconsideration would be the propose an approach where we pay our which would be inconsistent with the
VerDate Sep<11>2014 20:43 Oct 01, 2015 Jkt 238001 PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 E:\FR\FM\02OCN1.SGM 02OCN1](https://thefederalregister.org/doc/80_FR_59933/page/3.svg)
![Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Notices 59745
general requirement of DOE Order 1969, the proposed action is not a major the Customer at the Barkley Project
RA6120.2. Federal action for which preparation of Switchyard, at a delivery point in the
an Environmental Impact Statement is vicinity of the Paradise steam plant and
6. Capital Cost Recovery
required. at such other points of delivery as may
Comment: [Commenter] suggests hereafter be agreed upon by the
SEPA explore capital cost recovery Availability of Information
Government and Tennessee Valley
alternatives within its rate-making Information regarding these rates, Authority (TVA).
authority with the goal remaining to including studies, and other supporting Billing Month: The billing month for
keep rates as low as possible for as long materials, is available for public review power sold under this schedule shall
as possible. SEPA should consider a in the offices of Southeastern Power end at 2400 hours CDT or CST,
true-up rate as an alternative. Administration, 1166 Athens Tech whichever is currently effective, on the
Response: Southeastern staff proposed Road, Elberton, Georgia 30635–6711. last day of each calendar month.
to employ an annual true-up to alter the Conditions of Service: The Customer
rate each April accounting for actual Submission to the Federal Energy
shall at its own expense provide, install,
hydropower investment completed and Regulatory Commission and maintain on its side of each
placed in service the prior fiscal year. A The rates hereinafter confirmed and delivery point the equipment necessary
similar mechanism proved successful in approved on an interim basis, together to protect and control its own system. In
the Kerr-Philpott System to address with supporting documents, will be so doing, the installation, adjustment,
planned infrastructure rehabilitation. submitted promptly to FERC for and setting of all such control and
Comments supported or were silent confirmation and approval on a final protective equipment at or near the
with regard to enacting a true-up and basis. point of delivery shall be coordinated
Southeastern proposes to affect a true- with that which is installed by and at
Order
up instrument to improve Federal the expense of TVA on its side of the
hydropower’s competitiveness in the In view of the foregoing and pursuant delivery point.
energy market. to the authority delegated to me by the Rate Alternatives: Southeastern Power
Secretary of Energy, I hereby confirm Administration (Southeastern) is
7. Transmission Arrangements and approve on an interim basis, including three rate alternatives. All of
Comment: We would suggest SEPA effective October 1, 2015, attached the rate alternatives have an initial base
explore an agreement with TVA that Wholesale Power Rate Schedules CBR– annual revenue requirement of
more closely resembles the transmission 1–I, CSI–1–I, CEK–1–I, CM–1–I, CC–1– $63,500,000, including transmission
service that SEPA now receives from J, CK–1–I, CTV–1–I, CTVI–1–B, and and non-power revenue. The initial base
TVA, delivering power to discrete Replacement-3. The rate schedules shall annual revenue requirement from the
delivery points from a network of remain in effect on an interim basis sale of capacity and energy is
resources or generation resources. We through September 30, 2020, unless $50,235,000. The initial base revenue
think the service you’ve received for such period is extended or until FERC requirements will be subject to annual
years has been more of a network confirms and approves them or true-up adjustment described below.
service. substitute rate schedules on a final
Response: Southeastern will discuss basis. Rate Scenario 1—Revised Interim
transmission service options with TVA Operating Plan
Dated: September 25, 2015.
in an effort to secure the most The final marketing policy for the
economical delivery method for our Elizabeth Sherwood-Randall,
Deputy Secretary. Cumberland System was published in
customers. the Federal Register August 5, 1993 (58
Wholesale Power Rate Schedule FR 41762). The marketing policy for the
Discussion
CBR–1–I Cumberland System of Projects provides
System Repayment Availability: This rate schedule shall peaking capacity, along with 1500 hours
An examination of Southeastern’s be available to Big Rivers Electric of energy annually with each kilowatt of
revised system power repayment study, Corporation and the City of Henderson, capacity, to customers outside the TVA
prepared in August, 2015, for the Kentucky (hereinafter called the transmission system. Due to restrictions
Cumberland System, shows that with Customer). on the operation of the Center Hill
the rates established in this notice, all Applicability: This rate schedule shall Project imposed by the U.S. Army Corps
system power costs are paid within the be applicable to electric capacity and of Engineers (Corps) as a precaution to
50-year repayment period, as required energy available from the Dale Hollow, prevent failure of the dam, Southeastern
by existing law and DOE Order RA Center Hill, Wolf Creek, Cheatham, Old is not able to provide the full allocation
6120.2. The Administrator of Hickory, Barkley, J. Percy Priest, and of peaking capacity to these customers.
Southeastern has certified that the rates Cordell Hull Projects (all of such Southeastern implemented a Revised
are consistent with applicable law and projects being hereinafter called Interim Operating Plan for the
that they are the lowest possible rates to collectively the ‘‘Cumberland Projects’’) Cumberland System to provide these
customers consistent with sound and sold in wholesale quantities. customers with a reduced amount of
business principles. Character of Service: The electric energy and a reduced amount of
capacity and energy supplied hereunder capacity. The rates under this Scenario
Environmental Impact will be three-phase alternating current 1 will remain in effect for the duration
mstockstill on DSK4VPTVN1PROD with NOTICES
Southeastern has reviewed the at a nominal frequency of 60 hertz. The of the Revised Interim Operating Plan.
possible environmental impacts of the power shall be delivered at nominal The initial base rates for capacity and
rate adjustment under consideration and voltages of 13,800 volts and 161,000 energy will be subject to annual true-up
has concluded that, because the volts to the transmission system of Big adjustment described below.
adjusted rates would not significantly Rivers Electric Corporation. Monthly Rate:
affect the quality of the human Points of Delivery: Capacity and The initial monthly base rate for
environment within the meaning of the energy delivered to the Customer will be capacity and energy sold under this rate
National Environmental Policy Act of delivered at points of interconnection of schedule shall be:
VerDate Sep<11>2014 20:43 Oct 01, 2015 Jkt 238001 PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 E:\FR\FM\02OCN1.SGM 02OCN1](https://thefederalregister.org/doc/80_FR_59933/page/4.svg)
![59754 Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Notices
Interim Operating Plan for the of each year based on transfers of Outside Customers shall be available
Cumberland System to provide these specific power investment to plant-in- annually, divided monthly such that the
customers with a reduced amount of service for the preceding Fiscal Year. maximum available in any month shall
energy and a reduced amount of Under this scenario 2, the adjustment is not exceed 240 hours per kilowatt of
capacity. The rates under this Scenario an increase of $53,000 per year to the total Outside Customers contract
1 will remain in effect for the duration annual revenue requirement for each demand, and the minimum amount
of the Revised Interim Operating Plan. increase of $1,000,000 to specific power available in any month shall not be less
The initial base rates for capacity and plant-in-service. Southeastern will give than 60 hours per kilowatt of total
energy will be subject to annual true-up written notice to the TVA and TVPPA Outside Customers demand.
adjustment described below. of the amount of the true-up by In the event that any portion of the
Monthly Rate: The initial monthly February 1 of each year. capacity allocated to Outside Customers
base rate for capacity and energy sold is not initially delivered to the Outside
under this rate schedule shall be: Rate Scenario 3—Original Cumberland
Marketing Policy Customers as of the beginning of a full
Initial Base Demand charge: $1.902
contract year, (July through June), the
per kilowatt per month The third rate alternative will go into 1500 hours, plus any such additional
Initial Base Energy Charge: 12.35 effect once the Corps lifts all restrictions energy required as discussed above,
mills per kilowatt-hour. on the operation of the Center Hill Dam
True-up Adjustment: The Base shall be reduced 1⁄12 for each month of
and Southeastern returns to operations that year prior to initial delivery of such
Capacity Charge and Base Energy that support the published marketing
Charge will be subject to annual capacity.
policy. The initial base rates for
adjustment on April 1 of each year capacity, energy, and additional energy The energy scheduled by TVA for use
based on transfers of specific power will be subject to annual true-up within the TVA System in any billing
investment to plant-in-service for the adjustment described below. month shall be the total energy
preceding Fiscal Year. Under this Monthly Rate: The initial monthly delivered to TVA less (1) an adjustment
scenario the adjustment will be for each base rate for capacity and energy sold for fast or slow meters, if any, (2) an
increase of $1,000,000 to specific power under this rate schedule shall be: adjustment for Barkley-Kentucky Canal
plant-in-service an increase of $0.001 Initial Base Demand charge (includes of 15,000 megawatt-hours of energy
per kilowatt per month added to the 1500 hours of energy annually): $3.115 each month which is delivered to TVA
base capacity charge and 0.02 mills per per kilowatt/month of total contract under the agreement from the
kilowatt-hour added to the base energy demand. Cumberland Projects without charge to
rate. Initial Base Energy Charge: None. TVA, (3) the energy scheduled by the
Southeastern will give written notice Initial Base Additional Energy Charge: Department of Energy in said month for
to the TVA and TVPPA of the amount 11.612 mills per kilowatt-hour. the Outside Customers plus losses of
of the true-up by February 1 of each True-up Adjustment:The base two percent [2%], and (4) station service
year. demand charge and base additional energy furnished by TVA.
energy charge under this scenario will Each kilowatt of capacity will include
Rate Scenario 2—Modified Revised be subject to annual adjustment on
Interim Operating Plan 1500 kilowatt-hours of energy per year,
April 1 of each year based on transfers which is defined as base energy. Energy
This rate alternative will be to specific power plant-in-service. received in excess of 1500 kilowatt-
implemented if a portion of the Under this scenario 3, the adjustment is hours per kilowatt will be subject to an
Cumberland Capacity can be scheduled, for each increase of $1,000,000 to additional energy charge identified in
though not all the capacity in the specific power plant-in-service an the monthly rates section of this rate
published marketing policy can be increase of $ 0.003 per kilowatt per schedule.
scheduled. The initial base annual month added to the base Capacity rate
revenue requirement under this Service Interruption: When delivery
and an increase of 0.012 mills per
alternative is $63,500,000, including of capacity to TVA is interrupted or
kilowatt-hour added to the additional
transmission and non-power revenue, reduced due to conditions on the
energy rate.
the same as the annual revenue Southeastern will give written notice Department of Energy’s system that are
requirement in Scenarios 1 and 3. The to the TVA and TVPPA of the amount beyond its control, the Department of
annual revenue requirement from the of the true-up by February 1 of each Energy will continue to make available
sale of capacity and energy is year. the portion of its declaration of energy
$50,235,000. This Rate Scenario 2 will Energy to be Made Available: The that can be generated with the capacity
receive revenues from capacity that can Department of Energy shall determine available.
be scheduled and the remainder from the energy that is available from the For such interruption or reduction
energy, at charges that will be projects for declaration in the billing (exclusive of any restrictions provided
determined at the time. Under Scenario month. in the agreement) due to conditions on
2, the cost of the TVA transmission To meet the energy requirements of the Department of Energy’s system
credit will be passed to customers the Department of Energy’s customers which have not been arranged for and
outside the TVA System. This rate outside the TVA area (hereinafter called agreed to in advance, the demand
alternative will be in effect if Outside Customers), 768,000 megawatt- charge for scheduled capacity made
Southeastern chooses to modify the hours of net energy shall be available available to TVA will be reduced as to
mstockstill on DSK4VPTVN1PROD with NOTICES
Revised Interim Operating Plan. annually (including 36,900 megawatt- the kilowatts of such scheduled capacity
The annual revenue requirement and hours of annual net energy to which have been so interrupted or
rates under this scenario 2 will be supplement energy available at Laurel reduced for each day in accordance with
subject to annual adjustment on April 1 Project). The energy requirement of the the following formula:
VerDate Sep<11>2014 20:43 Oct 01, 2015 Jkt 238001 PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 E:\FR\FM\02OCN1.SGM 02OCN1](https://thefederalregister.org/doc/80_FR_59933/page/13.svg)
Document Created: 2015-12-15 08:44:38
Document Modified: 2015-12-15 08:44:38
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice of interim approval. | |
| Dates | Approval of the rate schedules on an interim basis is effective October 1, 2015, through September 30, 2020. | |
| Contact | Virgil G. Hobbs, III, Assistant Administrator, Finance & Marketing, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635- 6711, (706) 213-3838. | |
| FR Citation | 80 FR 59742 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR