81_FR_5763 81 FR 5741 - Desert Southwest Customer Service Region Network Integration Transmission Service and Ancillary Services-Rate Order No. WAPA-175

81 FR 5741 - Desert Southwest Customer Service Region Network Integration Transmission Service and Ancillary Services-Rate Order No. WAPA-175

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 81, Issue 22 (February 3, 2016)

Page Range5741-5744
FR Document2016-01977

The Western Area Power Administration (Western) Parker-Davis (P-DP) and Pacific Northwest-Pacific Southwest Intertie (Intertie) Projects' Network Integration Transmission Service (NITS) formula rates under Rate Schedules PD-NTS3, INT-NTS3 and Western Area Lower Colorado Balancing Authority's (WALC) Ancillary Services formula rates under Rate Schedules DSW-SD3, DSW-RS3, DSW-FR3, DSW-EI3, DSW-GI1, DSW-SPR3, and DSW-SUR3 expire on September 30, 2016. Western is proposing modifications to the existing formula rate schedules and adding two new rate schedules, referred to as Transmission Losses Services (DSW-TL1) and Penalty Rate for Unreserved Use of Transmission Service (DSW-UU1). Western will prepare a brochure that provides detailed information on the proposed formula rates. If adopted, the proposed formula rates, under Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, DSW- RS4, DSW-FR4, DSW-EI4, DSW-GI2, DSW-SPR4, and DSW-SUR4 will become effective October 1, 2016, and will remain in effect through September 30, 2021, or until superseded. Publication of this Federal Register notice (FRN) begins the formal process for the proposed formula rates.

Federal Register, Volume 81 Issue 22 (Wednesday, February 3, 2016)
[Federal Register Volume 81, Number 22 (Wednesday, February 3, 2016)]
[Notices]
[Pages 5741-5744]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01977]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Customer Service Region Network Integration 
Transmission Service and Ancillary Services--Rate Order No. WAPA-175

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Formula Rates for Network Integration 
Transmission Service and Ancillary Services.

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

SUMMARY: The Western Area Power Administration (Western) Parker-Davis 
(P-DP) and Pacific Northwest-Pacific Southwest Intertie (Intertie) 
Projects' Network Integration Transmission Service (NITS) formula rates 
under Rate Schedules PD-NTS3, INT-NTS3 and Western Area Lower Colorado 
Balancing Authority's (WALC) Ancillary Services formula rates under 
Rate Schedules DSW-SD3, DSW-RS3, DSW-FR3, DSW-EI3, DSW-GI1, DSW-SPR3, 
and DSW-SUR3 expire on September 30, 2016. Western is proposing 
modifications to the existing formula rate schedules and adding two new 
rate schedules, referred to as Transmission Losses Services (DSW-TL1) 
and Penalty Rate for Unreserved Use of Transmission Service (DSW-UU1). 
Western will prepare a brochure that provides detailed information on 
the proposed formula rates. If adopted, the proposed formula rates, 
under Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, DSW-
RS4, DSW-FR4, DSW-EI4, DSW-GI2, DSW-SPR4, and DSW-SUR4 will become 
effective October 1, 2016, and will remain in effect through September 
30, 2021, or until superseded. Publication of this Federal Register 
notice (FRN) begins the formal process for the proposed formula rates.

DATES: The consultation and comment period begins today and will end 
May 3, 2016. Western will present a detailed explanation of the 
proposed formula rates and other modifications addressed

[[Page 5742]]

in this FRN at a public information forum that will be held on March 
30, 2016, from 10 a.m. to no later than 12 p.m. MST. Western will 
accept oral and written comments at a public comment forum that will be 
held on March 30, 2016, from 1 p.m. to no later than 3 p.m. MST. 
Western will accept written comments any time during the consultation 
and comment period.

ADDRESSES: The location for both the public information forum and the 
public comment forum is the Western Area Power Administration, Desert 
Southwest Customer Service Regional Office, located at 615 South 43 
Avenue, Phoenix, Arizona, 85009. Send written comments to Mr. Ronald E. 
Moulton, Regional Manager, Desert Southwest Customer Service Region, 
Western Area Power Administration, P.O. Box 6457, Phoenix, Arizona 
85005-6457, email [email protected]. Written comments may also be faxed 
to (602) 605-2490, attention: Mr. Scott Lund, Rates Manager. Western 
will post information about the rate process, as well as comments 
received via letter, email, and fax, on its Web site at: http://www.wapa.gov/regions/DSW/Rates/Pages/ancillary-rates-2017.aspx. Written 
comments must be received by the end of the consultation and comment 
period to be considered by Western in its decision process.
    As access to Western facilities is controlled, any United States 
(U.S.) citizen wishing to attend must present an official form of 
picture identification (ID) such as a U.S. driver's license, U.S. 
passport, U.S. Government ID, or U.S. Military ID prior to signing into 
Western. Foreign nationals should contact Western via Mr. Scott Lund, 
Rates Manager, telephone (602) 605-2442 or email [email protected] 30 days 
in advance of the meeting to obtain the necessary form for admittance 
to Western's Desert Southwest Office.

FOR FURTHER INFORMATION CONTACT: Mr. Scott Lund, Rates Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, Arizona 85005-6457, telephone (602) 605-2442 or 
email [email protected].

SUPPLEMENTARY INFORMATION: Under the existing formula rate schedules 
approved under Rate Order No. WAPA-151,\1\ charges are recalculated 
annually using updated financial and load information, as applicable. 
The proposed formula rates continue this approach. If adopted, these 
proposed formula rates will be in effect October 1, 2016, through 
September 30, 2021. This FRN describes proposed changes to the services 
referenced below.
---------------------------------------------------------------------------

    \1\ WAPA-151 was approved by FERC on a final basis on March 5, 
2012, in Docket No. EF11-14-000 (138 FERC ] 62,198).
---------------------------------------------------------------------------

Transmission Services

Network Integration Transmission Service (Rate Schedule PD-NTS4 and 
INT-NTS4)

    Western proposes no changes to the NITS formula rates on the P-DP 
and Intertie, but proposes to make minor editorial changes to the rate 
schedule. Those edits would consist of removing the section setting 
forth the annual revenue requirements as well as moving the 
transmission losses language to a new rate schedule. In the future, the 
revenue requirements will be identified in a separate tracking document 
posted on Western's Web site, as well as posted on Western's 
Transmission Services Open Access Same Time Information System (OASIS) 
Web site for WALC.

Transmission Losses Service (Rate Schedule DSW-TL1)

    Western proposes no changes to the existing transmission losses 
language and application; instead, it proposes moving the loss 
adjustment sections for each project into a single WALC formula rate 
schedule. This single WALC formula rate schedule will supersede the 
language in the existing individual schedules. WALC loss rates were 
developed in 2004 and are applied in three of Western's transmission 
systems: P-DP, Intertie and Central Arizona Project (CAP). Creating a 
single WALC formula rate schedule for transmission losses will ensure 
consistent language across projects.

Penalty Rate for Unreserved Use of Transmission Service (Rate Schedule 
DSW-UU1)

    Western proposes creating a new formula rate schedule for Penalty 
Rate for Unreserved Use of Transmission Service. Although charges are 
already assessed in each transmission rate schedule for any unreserved 
use of the transmission system, creating a new schedule will allow for 
consistent treatment across projects.
    The proposed charge for unreserved use is two times the maximum 
allowable rate for the service at issue, assessed as follows: The 
penalty for a single hour of unreserved use is based on the daily 
short-term transmission rate. The penalty for more than one instance of 
unreserved use for any given duration (e.g., daily) increases to the 
next longest duration (e.g., weekly). The penalty for multiple 
instances of unreserved use (e.g., more than one hour) within a day is 
based on the daily rate for short-term transmission service. The 
penalty for multiple instances of unreserved use isolated to one 
calendar week is based on the weekly short-term rate. The penalty for 
multiple instances of unreserved use during more than one week in a 
calendar month is based on the monthly short-term rate.
    A customer that exceeds its reserved capacity at any point of 
receipt or point of delivery, or a customer that uses transmission 
service at a point of receipt or point of delivery that it has not 
reserved, is required to pay for all Ancillary Services provided by 
WALC and associated with the unreserved use. Customers must pay for 
Ancillary Services based on the amount of transmission service used and 
not reserved.

Ancillary Services

Scheduling, System Control, and Dispatch Service (Rate Schedule DSW-
SD4)

    Western proposes no changes to the Scheduling, System Control, and 
Dispatch formula rate, but plans to make minor editorial changes to the 
rate schedule. Those edits would consist of minor changes to the 
language within the ``applicable'' section and removing the section 
setting forth the annual charge. In the future, the annual charge will 
be identified in a separate tracking document posted on Western's Web 
site as well as the WALC OASIS Web site.

Reactive Supply and Voltage Control From Generation or Other Sources 
Service (Rate Schedule DSW-RS4)

    Western proposes no changes to the Reactive Supply and Voltage 
Control from Generation or Other Sources Service formula rate, but 
proposes to make minor editorial changes to the rate schedule. Those 
edits would consist of minor changes to the language within the 
``applicable'' section and removing the section setting forth the 
annual charge. In the future, the annual charge will be identified in a 
separate tracking document posted on Western's Web site as well as the 
WALC OASIS Web site.

Regulation and Frequency Response Service (Rate Schedule DSW-FR4)

    In order to more accurately allocate costs based on cost causation 
principles, Western is proposing a change to the current load-based 
assessment of the Regulation and Frequency Response Service (Regulation 
Service) formula rate. The current load-based assessment is applicable 
to (1) all load inside WALC and (2) installed nameplate capacity of all 
intermittent resources serving load inside WALC.

[[Page 5743]]

    Western is not proposing any changes to the application of the 
load-based assessment for the load inside WALC. The charge will 
continue to be one-for-one for each megawatt (MW) of load inside WALC. 
Western is, however, proposing to modify the one-for-one MW load-based 
assessment for the installed nameplate of intermittent resources 
serving load inside WALC. It would instead include a ``variable 
capacity multiplier'' to be applied to the installed capacity for 
Variable Energy Resources (VER) serving load inside WALC.
    The proposed formula rate for Regulation Service is as follows:
    [GRAPHIC] [TIFF OMITTED] TN03FE16.006
    
    Regulation Service is necessary to provide continuous balancing of 
resources with obligations and for maintaining scheduled 
interconnection frequency at sixty cycles per second (60 Hz). 
Regulation Service is accomplished by committing on-line generation 
whose output is raised or lowered as necessary, predominantly through 
the use of automatic generation control equipment to follow moment-by-
moment changes in load. The obligation to maintain this balance between 
resources and load lies with the Transmission Service Provider (TSP) or 
the Control Area operator who performs this function for the TSP. The 
TSP must offer this service when the transmission service is used to 
serve load within its balancing authority area.
    Western markets the maximum amount of power from its Federal 
projects, leaving little flexibility for additional regulation needs 
within WALC. Connecting VER to the system would result in a significant 
increase in regulation needs and costs, and present operational 
constraints in managing the significant fluctuations normally 
associated with VER. These costs get spread to all customers taking 
Regulation Service regardless of their ability or inability to 
influence the condition.
    The Annual Revenue Requirement for Regulation Service will not be 
affected by the inclusion of the multipliers. The proposed change will 
result in the denominator increasing because more units of capacity 
will be charged, which in turn will cause the overall Regulation 
Service charge to be lower. The lower charge will then be allocated to 
each unit of capacity, thereby lowering the costs incurred by the load 
and assigning more of the costs for regulating capacity to those 
customers predominately contributing to the need for Regulation 
Service.
    In order to determine the ``variable capacity multipliers'', 
Western has developed a regulation analysis tool that will allow WALC 
to determine the hourly impacts of both load and variable energy 
generation on WALC. The regulation analysis tool focuses on 95 percent 
(%) of the events where WALC's Area Control Error limit was exceeded 
within the 10 minute duration range.
    WALC does not have a significant amount of wind or solar generation 
impacting its balancing authority area and, therefore, does not have 
sufficient data to perform a thorough analysis at this time. Therefore, 
Western proposes to assess a wind and solar capacity multiplier of 1.00 
or 100%. This number does not change the current denominator, but it 
allows the denominator to change if and when VER becomes a resource 
within WALC.
    In addition, Western proposes to make minor editorial changes to 
the Regulation Service rate schedule. Those edits would consist of 
minor changes to the language within the ``applicable'' section and 
removing the section setting forth the annual charge. In the future, 
the annual charge will be identified in a separate tracking document 
posted on Western's Web site as well as the WALC OASIS Web site.

Energy and Generator Imbalance Services (Rate Schedules DSW-EI4 and 
DSW-GI2)

    Western is proposing a change to the off-peak penalty bandwidths 
for Energy and Generator Imbalance Services (Imbalance Services). The 
off-peak penalty and bandwidth structure will consist of three 
deviation bands similar to the on-peak structure. This would coincide 
with FERC Order 890 guidelines with adjustments for WALC operating 
conditions. The proposed bandwidths are as follows:
    (1) Off-Peak Hours +/- 0 percent to 1.5 percent of metered load/
generation (0 to 4 MW minimum) with no penalty within bandwidth.
    (2) Off-Peak Hours +/-1.5 percent to 7.5 percent of metered load/
generation (4 to 10 MW minimum) with 110 percent return for under-
deliveries and 75 percent return for over-deliveries.
    (3) Off-Peak Hours > +/-7.5 percent of metered load/generation (>10 
MW minimum) with 125 percent return for under-deliveries and 60 percent 
for over-deliveries.
    In addition, Western proposes to make minor editorial changes to 
the Imbalance Services rate schedules. Those edits would consist of 
minor changes to the language within the ``applicable'' section and 
removing the section setting forth the annual charge. In the future, 
the annual charge will be identified in a separate tracking document 
posted on Western's Web site as well as the WALC OASIS Web site.

Operating Reserves Service--Spinning and Supplemental (Rate Schedules 
DSW-SPR4 and DSW-SUR4)

    Western proposes no changes to the Spinning and Supplemental 
Reserves Service formula rates, but proposes to make minor editorial 
changes to the rate schedules. Those edits would consist of changes to 
the language within the ``applicable'' section and removing the section 
setting forth the annual charge. In the future, the annual charge will 
be identified in a separate tracking document posted on Western's Web 
site as well as the WALC OASIS Web site.

[[Page 5744]]

Legal Authority

    Western will hold both a public information forum and a public 
comment forum. After review of public comments, Western will take 
further action on the proposed formula rates and other modifications 
addressed in this FRN, and follow procedures for public participation 
consistent with 10 CFR part 903.
    Western is establishing P-DP and Intertie NITS and WALC Ancillary 
Services formula rates under the Department of Energy (DOE) 
Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902 (ch. 
1093, 32 Stat. 388), as amended and supplemented by subsequent 
enactments, particularly section 9(c) of the Reclamation Project Act of 
1939 (43 U.S.C. 485h(c)) and section 5 of the Flood Control Act of 1944 
(16 U.S.C. 825s); and other acts specifically applicable to the 
projects involved.
    By Delegation Order No. 00-037.00A, effective December 25, 2013, 
the Secretary of Energy delegated: (1) The authority to develop power 
and transmission rates to Western's Administrator; (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to the Federal Energy Regulatory Commission.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents Western initiates or uses to develop the proposed formula 
rates are available for inspection and copying at the Desert Southwest 
Customer Service Regional Office, Western Area Power Administration, 
located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Many of these 
documents and supporting information are available on Western's Web 
site at: http://www.wapa.gov/regions/DSW/Rates/Pages/ancillary-rates-2017.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969, 42 U.S.C. 4321-4347; the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western 
is in the process of determining whether an environmental assessment or 
an environmental impact statement should be prepared or if this action 
can be categorically excluded from those requirements.

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

    Dated: January 20, 2016.
Mark A. Gabriel,
Administrator.
[FR Doc. 2016-01977 Filed 2-2-16; 8:45 am]
 BILLING CODE 6450-01-P



                                                                             Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices                                                  5741

                                                  Recovery Implementation Program (RIP)                   the existing Windy Gap pipeline that                  following the requirements of the
                                                  for Endangered Fish Species in the                      delivers water to Granby Reservoir. The               Council on Environmental Quality
                                                  Upper Colorado River Basin was                          existing C–BT Willow Creek Pump                       Regulations for Implementing the
                                                  initiated on January 22, 1988.                          Station, forebay, and portions of the                 Procedural Provisions of the NEPA (40
                                                     The RIP was intended to be the                       canal and pipeline would be relocated.                CFR parts 1500–1508) and DOE’s NEPA
                                                  reasonable and prudent alternative for                  This alternative would require Western                Implementing Procedures (10 CFR part
                                                  individual projects to avoid the                        to move its existing Estes-Lyons 115-kV               1021).
                                                  likelihood of jeopardy to the endangered                transmission line away from the                        Dated: January 14, 2016.
                                                  fishes from depletions from the Upper                   proposed Chimney Hollow Reservoir                     Mark A. Gabriel,
                                                  Colorado River Basin. A Section 7                       site to avoid inundation.
                                                                                                                                                                Administrator.
                                                  agreement was implemented on October                       Alternative 4—Chimney Hollow
                                                  15, 1993, by RIP participants, and on                   Reservoir and Rockwell/Mueller Creek                  [FR Doc. 2016–02031 Filed 2–2–16; 8:45 am]
                                                  December 20, 1999, the Service issued                   Reservoir. This alternative is a                      BILLING CODE 6450–01–P

                                                  a Final Programmatic Biological                         combination of a 70,000 AF Chimney
                                                  Opinion (PBO), Operation and                            Hollow Reservoir on the East Slope and
                                                  Depletions, Other Depletions, and                       a 20,000 AF Rockwell/Mueller Creek                    DEPARTMENT OF ENERGY
                                                  Funding and Implementation of                           Reservoir (Rockwell Reservoir) on the                 Western Area Power Administration
                                                  Recovery Program Actions in the Upper                   West Slope, a new pipeline connection
                                                  Colorado River above the Confluence                     to the existing Windy Gap pump station                Desert Southwest Customer Service
                                                  with the Gunnison River. The Service                    and a new 3.3-mile pipeline to Rockwell               Region Network Integration
                                                  determined that the Project fits under                  Reservoir. This alternative would                     Transmission Service and Ancillary
                                                  the umbrella of the Colorado River RIP                  require Western to move its existing                  Services—Rate Order No. WAPA–175
                                                  and PBO and would avoid the                             Estes-Lyons 115-kV transmission line
                                                  likelihood of jeopardy and/or adverse                   away from the proposed Chimney                        AGENCY:  Western Area Power
                                                  modification of critical habitat for                    Hollow Reservoir site to avoid                        Administration, DOE.
                                                  depletion impacts. Under the PBO, the                   inundation.                                           ACTION: Notice of Proposed Formula
                                                  Subdistrict will make a monetary                           Alternative 5—Dry Creek Reservoir                  Rates for Network Integration
                                                  contribution for the 21,317 AF of                       and Rockwell/Mueller Creek Reservoir.                 Transmission Service and Ancillary
                                                  Colorado River water depletions to                      This alternative is a combination of a                Services.
                                                  support the recovery efforts for these                  60,000 AF Dry Creek Reservoir on the
                                                                                                          East Slope, a 30,000 AF Rockwell                      SUMMARY:   The Western Area Power
                                                  species in accordance with the RIP
                                                                                                          Reservoir on the West Slope, and a new                Administration (Western) Parker-Davis
                                                  Recovery Action Plan.
                                                                                                          3.4-mile pipeline and connection to the               (P–DP) and Pacific Northwest-Pacific
                                                  Alternatives Considered                                 existing Windy Gap pump station. This                 Southwest Intertie (Intertie) Projects’
                                                     Reclamation considered in detail five                alternative would require no action by                Network Integration Transmission
                                                  alternatives, including Alternative 1—                  Western.                                              Service (NITS) formula rates under Rate
                                                  the No-action Alternative. This                            Reclamation considers both the No                  Schedules PD–NTS3, INT–NTS3 and
                                                  alternative consisted of continuation of                Action Alternative and Alternative 2—                 Western Area Lower Colorado Balancing
                                                  operations under existing water rights                  Chimney Hollow Reservoir to be the                    Authority’s (WALC) Ancillary Services
                                                  and agreements between Reclamation                      environmentally preferable alternatives               formula rates under Rate Schedules
                                                  and the Subdistrict for conveyance of                   because of each alternative’s relative                DSW–SD3, DSW–RS3, DSW–FR3,
                                                  the Windy Gap Project water through                     overall effect on natural resources as                DSW–EI3, DSW–GI1, DSW–SPR3, and
                                                  existing C–BT Project facilities and the                described in their ROD.                               DSW–SUR3 expire on September 30,
                                                  reasonably foreseeable enlargement of                                                                         2016. Western is proposing
                                                  Ralph Price Reservoir.                                  Mitigation                                            modifications to the existing formula
                                                     Alternative 2—Chimney Hollow                            The EIS analysis includes                          rate schedules and adding two new rate
                                                  Reservoir (Proposed Action). Alternative                identification of standard construction               schedules, referred to as Transmission
                                                  2 included construction of a 90,000 AF                  mitigation measures for transmission                  Losses Services (DSW–TL1) and Penalty
                                                  Chimney Hollow Reservoir on the East                    line construction. Western will adhere                Rate for Unreserved Use of
                                                  Slope, with the ability to store C–BT                   to its standard construction mitigation               Transmission Service (DSW–UU1).
                                                  Project water there. Water would be                     measures described in the EIS. Long-                  Western will prepare a brochure that
                                                  conveyed to Chimney Hollow Reservoir                    term operations of the transmission line              provides detailed information on the
                                                  via a new pipeline connection to                        will follow Western’s standard                        proposed formula rates. If adopted, the
                                                  existing East Slope C–BT Project                        operating procedures and will not be                  proposed formula rates, under Rate
                                                  facilities but no new West Slope                        affected by this action. A Mitigation                 Schedules PD–NTS4, INT–NTS4, DSW–
                                                  infrastructure would be constructed.                    Action Plan is not required for                       TL1, DSW–UU1, DSW–SD4, DSW–RS4,
                                                  This alternative would require Western                  Western’s proposed action.                            DSW–FR4, DSW–EI4, DSW–GI2, DSW–
                                                  to move its existing Estes-Lyons 115-kV                                                                       SPR4, and DSW–SUR4 will become
                                                                                                          Decision                                              effective October 1, 2016, and will
                                                  transmission line away from the
                                                  proposed Chimney Hollow Reservoir                          Western’s decision is to modify its                remain in effect through September 30,
                                                  site to avoid inundation.                               transmission system as described above                2021, or until superseded. Publication
                                                                                                          in support of Reclamation’s decision to               of this Federal Register notice (FRN)
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                     Alternative 3—Chimney Hollow
                                                  Reservoir and Jasper East Reservoir.                    select Alternative 2—Chimney Hollow                   begins the formal process for the
                                                  Alternative 3 was a combination of                      Reservoir.1 This ROD was prepared                     proposed formula rates.
                                                  constructing a 70,000 AF Chimney                                                                              DATES: The consultation and comment
                                                                                                            1 On November 16, 2011, DOE’s Acting General
                                                  Hollow Reservoir on the East Slope and                                                                        period begins today and will end May
                                                                                                          Counsel restated the delegations to Western’s
                                                  a 20,000 AF Jasper East Reservoir on the                Administrator of all the authorities of the General
                                                                                                                                                                3, 2016. Western will present a detailed
                                                  West Slope. A new 1-mile pipeline                       Counsel respecting Environmental Impact               explanation of the proposed formula
                                                  would connect Jasper East Reservoir to                  Statements.                                           rates and other modifications addressed


                                             VerDate Sep<11>2014   19:14 Feb 02, 2016   Jkt 238001   PO 00000   Frm 00039   Fmt 4703   Sfmt 4703   E:\FR\FM\03FEN1.SGM   03FEN1


                                                  5742                       Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices

                                                  in this FRN at a public information                     1, 2016, through September 30, 2021.                  rate for short-term transmission service.
                                                  forum that will be held on March 30,                    This FRN describes proposed changes to                The penalty for multiple instances of
                                                  2016, from 10 a.m. to no later than 12                  the services referenced below.                        unreserved use isolated to one calendar
                                                  p.m. MST. Western will accept oral and                                                                        week is based on the weekly short-term
                                                                                                          Transmission Services
                                                  written comments at a public comment                                                                          rate. The penalty for multiple instances
                                                  forum that will be held on March 30,                    Network Integration Transmission                      of unreserved use during more than one
                                                  2016, from 1 p.m. to no later than 3 p.m.               Service (Rate Schedule PD–NTS4 and                    week in a calendar month is based on
                                                  MST. Western will accept written                        INT–NTS4)                                             the monthly short-term rate.
                                                  comments any time during the                                                                                     A customer that exceeds its reserved
                                                                                                            Western proposes no changes to the
                                                  consultation and comment period.                                                                              capacity at any point of receipt or point
                                                                                                          NITS formula rates on the P–DP and
                                                  ADDRESSES: The location for both the                    Intertie, but proposes to make minor                  of delivery, or a customer that uses
                                                  public information forum and the public                 editorial changes to the rate schedule.               transmission service at a point of receipt
                                                  comment forum is the Western Area                       Those edits would consist of removing                 or point of delivery that it has not
                                                  Power Administration, Desert                            the section setting forth the annual                  reserved, is required to pay for all
                                                  Southwest Customer Service Regional                     revenue requirements as well as moving                Ancillary Services provided by WALC
                                                  Office, located at 615 South 43 Avenue,                 the transmission losses language to a                 and associated with the unreserved use.
                                                  Phoenix, Arizona, 85009. Send written                   new rate schedule. In the future, the                 Customers must pay for Ancillary
                                                  comments to Mr. Ronald E. Moulton,                      revenue requirements will be identified               Services based on the amount of
                                                  Regional Manager, Desert Southwest                      in a separate tracking document posted                transmission service used and not
                                                  Customer Service Region, Western Area                                                                         reserved.
                                                                                                          on Western’s Web site, as well as posted
                                                  Power Administration, P.O. Box 6457,
                                                                                                          on Western’s Transmission Services                    Ancillary Services
                                                  Phoenix, Arizona 85005–6457, email
                                                                                                          Open Access Same Time Information
                                                  moulton@wapa.gov. Written comments                                                                            Scheduling, System Control, and
                                                                                                          System (OASIS) Web site for WALC.
                                                  may also be faxed to (602) 605–2490,                                                                          Dispatch Service (Rate Schedule DSW–
                                                  attention: Mr. Scott Lund, Rates                        Transmission Losses Service (Rate                     SD4)
                                                  Manager. Western will post information                  Schedule DSW–TL1)
                                                                                                                                                                  Western proposes no changes to the
                                                  about the rate process, as well as                        Western proposes no changes to the                  Scheduling, System Control, and
                                                  comments received via letter, email, and                existing transmission losses language                 Dispatch formula rate, but plans to make
                                                  fax, on its Web site at: http://                        and application; instead, it proposes
                                                  www.wapa.gov/regions/DSW/Rates/                                                                               minor editorial changes to the rate
                                                                                                          moving the loss adjustment sections for               schedule. Those edits would consist of
                                                  Pages/ancillary-rates-2017.aspx.
                                                                                                          each project into a single WALC formula               minor changes to the language within
                                                  Written comments must be received by
                                                                                                          rate schedule. This single WALC                       the ‘‘applicable’’ section and removing
                                                  the end of the consultation and
                                                                                                          formula rate schedule will supersede                  the section setting forth the annual
                                                  comment period to be considered by
                                                                                                          the language in the existing individual               charge. In the future, the annual charge
                                                  Western in its decision process.
                                                     As access to Western facilities is                   schedules. WALC loss rates were                       will be identified in a separate tracking
                                                  controlled, any United States (U.S.)                    developed in 2004 and are applied in                  document posted on Western’s Web site
                                                  citizen wishing to attend must present                  three of Western’s transmission systems:              as well as the WALC OASIS Web site.
                                                  an official form of picture identification              P–DP, Intertie and Central Arizona
                                                                                                          Project (CAP). Creating a single WALC                 Reactive Supply and Voltage Control
                                                  (ID) such as a U.S. driver’s license, U.S.                                                                    From Generation or Other Sources
                                                  passport, U.S. Government ID, or U.S.                   formula rate schedule for transmission
                                                                                                          losses will ensure consistent language                Service (Rate Schedule DSW–RS4)
                                                  Military ID prior to signing into
                                                  Western. Foreign nationals should                       across projects.                                         Western proposes no changes to the
                                                  contact Western via Mr. Scott Lund,                                                                           Reactive Supply and Voltage Control
                                                                                                          Penalty Rate for Unreserved Use of
                                                  Rates Manager, telephone (602) 605–                                                                           from Generation or Other Sources
                                                                                                          Transmission Service (Rate Schedule
                                                  2442 or email slund@wapa.gov 30 days                                                                          Service formula rate, but proposes to
                                                                                                          DSW–UU1)
                                                  in advance of the meeting to obtain the                                                                       make minor editorial changes to the rate
                                                  necessary form for admittance to                           Western proposes creating a new                    schedule. Those edits would consist of
                                                  Western’s Desert Southwest Office.                      formula rate schedule for Penalty Rate                minor changes to the language within
                                                                                                          for Unreserved Use of Transmission                    the ‘‘applicable’’ section and removing
                                                  FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                          Service. Although charges are already                 the section setting forth the annual
                                                  Scott Lund, Rates Manager, Desert
                                                                                                          assessed in each transmission rate                    charge. In the future, the annual charge
                                                  Southwest Customer Service Region,
                                                                                                          schedule for any unreserved use of the                will be identified in a separate tracking
                                                  Western Area Power Administration,
                                                                                                          transmission system, creating a new                   document posted on Western’s Web site
                                                  P.O. Box 6457, Phoenix, Arizona 85005–
                                                                                                          schedule will allow for consistent                    as well as the WALC OASIS Web site.
                                                  6457, telephone (602) 605–2442 or
                                                  email slund@wapa.gov.                                   treatment across projects.
                                                                                                             The proposed charge for unreserved                 Regulation and Frequency Response
                                                  SUPPLEMENTARY INFORMATION: Under the                                                                          Service (Rate Schedule DSW–FR4)
                                                                                                          use is two times the maximum
                                                  existing formula rate schedules                         allowable rate for the service at issue,                 In order to more accurately allocate
                                                  approved under Rate Order No. WAPA–
                                                                                                          assessed as follows: The penalty for a                costs based on cost causation principles,
                                                  151,1 charges are recalculated annually
                                                                                                          single hour of unreserved use is based                Western is proposing a change to the
                                                  using updated financial and load
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                                                                                                          on the daily short-term transmission                  current load-based assessment of the
                                                  information, as applicable. The
                                                                                                          rate. The penalty for more than one                   Regulation and Frequency Response
                                                  proposed formula rates continue this
                                                                                                          instance of unreserved use for any given              Service (Regulation Service) formula
                                                  approach. If adopted, these proposed
                                                                                                          duration (e.g., daily) increases to the               rate. The current load-based assessment
                                                  formula rates will be in effect October
                                                                                                          next longest duration (e.g., weekly). The             is applicable to (1) all load inside WALC
                                                    1 WAPA–151 was approved by FERC on a final
                                                                                                          penalty for multiple instances of                     and (2) installed nameplate capacity of
                                                  basis on March 5, 2012, in Docket No. EF11–14–000       unreserved use (e.g., more than one                   all intermittent resources serving load
                                                  (138 FERC ¶ 62,198).                                    hour) within a day is based on the daily              inside WALC.


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                                                                             Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices                                            5743

                                                    Western is not proposing any changes                  proposing to modify the one-for-one                   installed capacity for Variable Energy
                                                  to the application of the load-based                    MW load-based assessment for the                      Resources (VER) serving load inside
                                                  assessment for the load inside WALC.                    installed nameplate of intermittent                   WALC.
                                                  The charge will continue to be one-for-                 resources serving load inside WALC. It                  The proposed formula rate for
                                                  one for each megawatt (MW) of load                      would instead include a ‘‘variable                    Regulation Service is as follows:
                                                  inside WALC. Western is, however,                       capacity multiplier’’ to be applied to the




                                                     Regulation Service is necessary to                   contributing to the need for Regulation               coincide with FERC Order 890
                                                  provide continuous balancing of                         Service.                                              guidelines with adjustments for WALC
                                                  resources with obligations and for                         In order to determine the ‘‘variable               operating conditions. The proposed
                                                  maintaining scheduled interconnection                   capacity multipliers’’, Western has                   bandwidths are as follows:
                                                  frequency at sixty cycles per second (60                developed a regulation analysis tool that                (1) Off-Peak Hours +/¥ 0 percent to
                                                  Hz). Regulation Service is accomplished                 will allow WALC to determine the                      1.5 percent of metered load/generation
                                                  by committing on-line generation whose                  hourly impacts of both load and variable              (0 to 4 MW minimum) with no penalty
                                                  output is raised or lowered as necessary,               energy generation on WALC. The                        within bandwidth.
                                                  predominantly through the use of                        regulation analysis tool focuses on 95                   (2) Off-Peak Hours +/¥1.5 percent to
                                                  automatic generation control equipment                  percent (%) of the events where WALC’s                7.5 percent of metered load/generation
                                                  to follow moment-by-moment changes                      Area Control Error limit was exceeded                 (4 to 10 MW minimum) with 110
                                                  in load. The obligation to maintain this                within the 10 minute duration range.                  percent return for under-deliveries and
                                                  balance between resources and load lies                    WALC does not have a significant                   75 percent return for over-deliveries.
                                                  with the Transmission Service Provider                  amount of wind or solar generation
                                                  (TSP) or the Control Area operator who                  impacting its balancing authority area                   (3) Off-Peak Hours > +/¥7.5 percent
                                                  performs this function for the TSP. The                 and, therefore, does not have sufficient              of metered load/generation (>10 MW
                                                  TSP must offer this service when the                    data to perform a thorough analysis at                minimum) with 125 percent return for
                                                  transmission service is used to serve                   this time. Therefore, Western proposes                under-deliveries and 60 percent for
                                                  load within its balancing authority area.               to assess a wind and solar capacity                   over-deliveries.
                                                     Western markets the maximum                          multiplier of 1.00 or 100%. This number                  In addition, Western proposes to
                                                  amount of power from its Federal                        does not change the current                           make minor editorial changes to the
                                                  projects, leaving little flexibility for                denominator, but it allows the                        Imbalance Services rate schedules.
                                                  additional regulation needs within                      denominator to change if and when VER                 Those edits would consist of minor
                                                  WALC. Connecting VER to the system                      becomes a resource within WALC.                       changes to the language within the
                                                  would result in a significant increase in                  In addition, Western proposes to                   ‘‘applicable’’ section and removing the
                                                  regulation needs and costs, and present                 make minor editorial changes to the                   section setting forth the annual charge.
                                                  operational constraints in managing the                 Regulation Service rate schedule. Those               In the future, the annual charge will be
                                                  significant fluctuations normally                       edits would consist of minor changes to               identified in a separate tracking
                                                  associated with VER. These costs get                    the language within the ‘‘applicable’’                document posted on Western’s Web site
                                                  spread to all customers taking                          section and removing the section setting              as well as the WALC OASIS Web site.
                                                  Regulation Service regardless of their                  forth the annual charge. In the future,               Operating Reserves Service—Spinning
                                                  ability or inability to influence the                   the annual charge will be identified in               and Supplemental (Rate Schedules
                                                  condition.                                              a separate tracking document posted on                DSW–SPR4 and DSW–SUR4)
                                                     The Annual Revenue Requirement for                   Western’s Web site as well as the WALC
                                                  Regulation Service will not be affected                 OASIS Web site.                                          Western proposes no changes to the
                                                  by the inclusion of the multipliers. The                                                                      Spinning and Supplemental Reserves
                                                  proposed change will result in the                      Energy and Generator Imbalance                        Service formula rates, but proposes to
                                                  denominator increasing because more                     Services (Rate Schedules DSW–EI4 and                  make minor editorial changes to the rate
                                                                                                          DSW–GI2)
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                                                  units of capacity will be charged, which                                                                      schedules. Those edits would consist of
                                                  in turn will cause the overall Regulation                 Western is proposing a change to the                changes to the language within the
                                                  Service charge to be lower. The lower                   off-peak penalty bandwidths for Energy                ‘‘applicable’’ section and removing the
                                                  charge will then be allocated to each                   and Generator Imbalance Services                      section setting forth the annual charge.
                                                  unit of capacity, thereby lowering the                  (Imbalance Services). The off-peak                    In the future, the annual charge will be
                                                  costs incurred by the load and assigning                penalty and bandwidth structure will                  identified in a separate tracking
                                                  more of the costs for regulating capacity               consist of three deviation bands similar              document posted on Western’s Web site
                                                                                                                                                                as well as the WALC OASIS Web site.
                                                                                                                                                                                                           EN03FE16.006</GPH>




                                                  to those customers predominately                        to the on-peak structure. This would


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                                                  5744                       Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices

                                                  Legal Authority                                         categorically excluded from those                     comment forum that will be held on
                                                     Western will hold both a public                      requirements.                                         March 28, 2016, from 2:30 p.m. to no
                                                  information forum and a public                                                                                later than 4:00 p.m. MDT. Western will
                                                                                                          Determination Under Executive Order
                                                  comment forum. After review of public                                                                         accept written comments any time
                                                                                                          12866
                                                  comments, Western will take further                                                                           during the consultation and comment
                                                                                                            Western has an exemption from                       period.
                                                  action on the proposed formula rates
                                                                                                          centralized regulatory review under
                                                  and other modifications addressed in                                                                          ADDRESSES:    The location for both the
                                                                                                          Executive Order 12866; accordingly, no
                                                  this FRN, and follow procedures for                                                                           public information forum and the public
                                                                                                          clearance of this notice by the Office of
                                                  public participation consistent with 10                                                                       comment forum is the Western Area
                                                                                                          Management and Budget is required.
                                                  CFR part 903.                                                                                                 Power Administration, Rocky Mountain
                                                     Western is establishing P–DP and                      Dated: January 20, 2016.
                                                                                                                                                                Region, 5555 East Crossroads Boulevard,
                                                  Intertie NITS and WALC Ancillary                        Mark A. Gabriel,                                      Loveland, Colorado. Send written
                                                  Services formula rates under the                        Administrator.                                        comments to Mr. Bradley S. Warren,
                                                  Department of Energy (DOE)                              [FR Doc. 2016–01977 Filed 2–2–16; 8:45 am]            Senior Vice President, Rocky Mountain
                                                  Organization Act (42 U.S.C. 7152); the                  BILLING CODE 6450–01–P                                Regional Manager, Western Area Power
                                                  Reclamation Act of 1902 (ch. 1093, 32                                                                         Administration, 5555 East Crossroads
                                                  Stat. 388), as amended and                                                                                    Boulevard, Loveland, Colorado 80538–
                                                  supplemented by subsequent                              DEPARTMENT OF ENERGY                                  8986, or at email LAPTransAdj@
                                                  enactments, particularly section 9(c) of                                                                      wapa.gov. Western will post
                                                  the Reclamation Project Act of 1939 (43                 Western Area Power Administration
                                                                                                                                                                information about the rate process, as
                                                  U.S.C. 485h(c)) and section 5 of the                                                                          well as comments received via letter
                                                  Flood Control Act of 1944 (16 U.S.C.                    Rocky Mountain Region Transmission,
                                                                                                          Ancillary Services, and Sale of Surplus               and email, on its Web site at: http://
                                                  825s); and other acts specifically                                                                            www.wapa.gov/regions/RM/rates/Pages/
                                                  applicable to the projects involved.                    Products—Rate Order No. WAPA–174
                                                                                                                                                                2017-rate-adjustment.aspx. Written
                                                     By Delegation Order No. 00–037.00A,                  AGENCY:  Western Area Power                           comments must be received by the end
                                                  effective December 25, 2013, the                        Administration, DOE.                                  of the consultation and comment period
                                                  Secretary of Energy delegated: (1) The                  ACTION: Notice of Proposed                            to be considered by Western in its
                                                  authority to develop power and                          Transmission, Ancillary Services, and                 decision process.
                                                  transmission rates to Western’s                         Sale of Surplus Products Formula Rates.                  As access to Western facilities is
                                                  Administrator; (2) the authority to
                                                                                                          SUMMARY:   The Western Area Power                     controlled, any United States (U.S.)
                                                  confirm, approve, and place such rates
                                                                                                          Administration (Western) Loveland                     citizen wishing to attend must present
                                                  into effect on an interim basis to the
                                                                                                          Area Projects’ (LAP) Transmission and                 an official form of picture identification
                                                  Deputy Secretary of Energy; and (3) the
                                                                                                          Western Area Colorado Missouri                        (ID), such as a U.S. driver’s license, U.S.
                                                  authority to confirm, approve, and place
                                                                                                          Balancing Authority’s (WACM)                          passport, U.S. Government ID, or U.S.
                                                  into effect on a final basis, to remand,
                                                                                                          Ancillary Services formula rates under                Military ID prior to signing into
                                                  or to disapprove such rates to the
                                                                                                          Rate Schedules L–NT1, L–FPT1, L–                      Western. Foreign nationals should
                                                  Federal Energy Regulatory Commission.
                                                                                                          NFPT1, L–AS1, L–AS2, L–AS3, L–AS4,                    contact Western via Mrs. Sheila D.
                                                  Availability of Information                                                                                   Cook, Rates Manager, at telephone
                                                                                                          L–AS5, L–AS6, L–AS7, L–AS9, and L–
                                                     All brochures, studies, comments,                    UU1 expire on September 30, 2016.                     number (970) 461–7211 or by email at
                                                  letters, memorandums, or other                          Western is proposing modifications to                 scook@wapa.gov 30 days in advance of
                                                  documents Western initiates or uses to                  the existing formula rate schedules and               the meeting to obtain the necessary form
                                                  develop the proposed formula rates are                  also is proposing to add a new rate                   for admittance to Western’s Rocky
                                                  available for inspection and copying at                 schedule, referred to as ‘‘LAP Marketing              Mountain Regional Office.
                                                  the Desert Southwest Customer Service                   Sale of Surplus Products, L–M1.’’                     FOR FURTHER INFORMATION CONTACT: Mrs.
                                                  Regional Office, Western Area Power                     Western has prepared a brochure that                  Sheila D. Cook, Rates Manager, Rocky
                                                  Administration, located at 615 South                    provides detailed information on the                  Mountain Region, Western Area Power
                                                  43rd Avenue, Phoenix, Arizona 85009.                    proposed formula rates. If adopted, the               Administration, 5555 East Crossroads
                                                  Many of these documents and                             proposed formula rates, under Rate                    Boulevard, Loveland, Colorado 80538–
                                                  supporting information are available on                 Schedules L–NT1, L–FPT1, L–NFPT1,                     8986, at telephone number (970) 461–
                                                  Western’s Web site at: http://                          L–AS1, L–AS2, L–AS3, L–AS4, L–AS5,                    7211, or by email at scook@wapa.gov.
                                                  www.wapa.gov/regions/DSW/Rates/                         L–AS6, L–AS7, L–AS9, L–UU1, and L–                    SUPPLEMENTARY INFORMATION: Under the
                                                  Pages/ancillary-rates-2017.aspx.                        M1, will become effective October 1,                  existing formula rate schedules,
                                                  Ratemaking Procedure Requirements                       2016, and will remain in effect through               approved under Rate Order No. WAPA–
                                                                                                          September 30, 2021, or until                          155,1charges are recalculated annually
                                                  Environmental Compliance                                superseded. Publication of this Federal               using updated financial and load
                                                     In compliance with the National                      Register notice (FRN) begins the formal               information, as applicable. The
                                                  Environmental Policy Act (NEPA) of                      process for consideration of the                      proposed formula rates continue this
                                                  1969, 42 U.S.C. 4321–4347; the Council                  proposed formula rates.                               approach. If adopted, these proposed
                                                  on Environmental Quality Regulations                    DATES: The consultation and comment                   formula rates will be in effect October
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                                                  for implementing NEPA (40 CFR parts                     period begins today and will end May                  1, 2016, through September 30, 2021.
                                                  1500–1508); and DOE NEPA                                3, 2016. Western will present a detailed
                                                  Implementing Procedures and                             explanation of the proposed formula                      1 WAPA–155 was approved by the Deputy

                                                  Guidelines (10 CFR part 1021), Western                  rates and other modifications addressed               Secretary of Energy on September 2, 2011 (76 FR
                                                  is in the process of determining whether                within this FRN at a public information               61184), and confirmed and approved by FERC on
                                                                                                                                                                a final basis on December 2, 2011, in Docket No.
                                                  an environmental assessment or an                       forum that will be held on March 28,                  EF11–10–000. See United States Department of
                                                  environmental impact statement should                   2016, at noon MDT. Western will accept                Energy, Western Area Power Administration, 137
                                                  be prepared or if this action can be                    oral and written comments at a public                 FERC ¶ 62,200.



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Document Created: 2016-02-03 00:40:12
Document Modified: 2016-02-03 00:40:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of Proposed Formula Rates for Network Integration Transmission Service and Ancillary Services.
DatesThe consultation and comment period begins today and will end May 3, 2016. Western will present a detailed explanation of the
ContactMr. Scott Lund, Rates Manager, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, Arizona 85005-6457, telephone (602) 605-2442 or email [email protected]
FR Citation81 FR 5741 

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