81_FR_58662 81 FR 58497 - Desert Southwest Region Transmission, Transmission Losses, Unreserved Use Penalties, and Ancillary Services-Rate Order No. WAPA-175

81 FR 58497 - Desert Southwest Region Transmission, Transmission Losses, Unreserved Use Penalties, and Ancillary Services-Rate Order No. WAPA-175

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 81, Issue 165 (August 25, 2016)

Page Range58497-58510
FR Document2016-20397

The Deputy Secretary of Energy has confirmed and approved Rate Order No. WAPA-175 and Rate Schedules PD-NTS4 and INT-NTS4, placing formula rates for Network Integration Transmission Service (Network) on the Parker-Davis Project (P-DP) and Pacific Northwest-Pacific Southwest Intertie Project (Intertie) of the Western Area Power Administration (WAPA) into effect on an interim basis. The Deputy Secretary also confirmed and approved Rate Schedules DSW-TL1, DSW-UU1, DSW-SD4, DSW- RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2, placing formula rates for transmission losses, unreserved use penalties, and ancillary services from WAPA's Desert Southwest Region (DSW) and Western Area Lower Colorado Balancing Authority (WALC) into effect on an interim basis. The provisional formula rates will provide sufficient revenue to pay all annual costs, including interest expense, and repay applicable investments within the allowable periods.

Federal Register, Volume 81 Issue 165 (Thursday, August 25, 2016)
[Federal Register Volume 81, Number 165 (Thursday, August 25, 2016)]
[Notices]
[Pages 58497-58510]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20397]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Region Transmission, Transmission Losses, 
Unreserved Use Penalties, and Ancillary Services--Rate Order No. WAPA-
175

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Final Formula Rates for Transmission and Ancillary 
Services.

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

[[Page 58498]]

SUMMARY: The Deputy Secretary of Energy has confirmed and approved Rate 
Order No. WAPA-175 and Rate Schedules PD-NTS4 and INT-NTS4, placing 
formula rates for Network Integration Transmission Service (Network) on 
the Parker-Davis Project (P-DP) and Pacific Northwest-Pacific Southwest 
Intertie Project (Intertie) of the Western Area Power Administration 
(WAPA) into effect on an interim basis. The Deputy Secretary also 
confirmed and approved Rate Schedules DSW-TL1, DSW-UU1, DSW-SD4, DSW-
RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2, placing formula 
rates for transmission losses, unreserved use penalties, and ancillary 
services from WAPA's Desert Southwest Region (DSW) and Western Area 
Lower Colorado Balancing Authority (WALC) into effect on an interim 
basis. The provisional formula rates will provide sufficient revenue to 
pay all annual costs, including interest expense, and repay applicable 
investments within the allowable periods.

DATES: Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, 
DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2 are 
effective on the first day of the first full billing period beginning 
on or after October 1, 2016, and will remain in effect through 
September 30, 2021, pending approval by the Federal Energy Regulatory 
Commission (FERC) on a final basis or until superseded.

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

SUPPLEMENTARY INFORMATION: WAPA's DSW published a Federal Register 
notice on February 3, 2016 (81 FR 5741), announcing the proposed 
formula rates, initiating a public consultation and comment period, and 
setting forth the date and location of public information and comment 
forums. On February 4, 2016, customers and interested parties were 
provided a copy of the published notice. WAPA's DSW held both forums in 
Phoenix, Arizona, on March 30, 2016.
    The previous Rate Schedules PD-NTS3, INT-NTS3, DSW-SD3, DSW-RS3, 
DSW-FR3, DSW-EI3, DSW-SPR3, DSW-SUR3, and DSW-GI1 for Rate Order No. 
WAPA-151 were approved by FERC for a 5-year period through September 
30, 2016.\1\ Several of these rate schedules contain formula rates that 
were calculated each year to include the most recent financial, load, 
and schedule information, as applicable. The new rate schedules 
continue this approach.
---------------------------------------------------------------------------

    \1\ Rate Order No. 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

    Rate Schedules PD-NTS4 and INT-NTS4 for Network on the P-DP and 
Intertie are based on a revenue requirement that recovers the costs for 
providing transmission service. This includes the costs for scheduling, 
system control, and dispatch service needed to provide the transmission 
service.
    Rate Schedule DSW-TL1 for Transmission Losses is a new rate 
schedule that provides for the recovery of losses associated with 
transmission service. Previously, losses were addressed in the 
transmission service rate schedules for each project administered by 
WAPA's DSW.
    Rate Schedule DSW-UU1 for Unreserved Use Penalties is also a new 
rate schedule that provides for a penalty, in addition to the usual 
charge for transmission service, for the use of transmission capacity 
that has not been reserved or has been used in excess of the amount 
reserved. Previously, penalty provisions for unauthorized use were 
included in the transmission service rate schedules for each project 
administered by WAPA's DSW.

Ancillary Services

    DSW provides seven ancillary services pursuant to WAPA's Open 
Access Transmission Tariff (OATT). These services include: (1) 
Scheduling, System Control, and Dispatch (DSW-SD4); (2) Reactive Supply 
and Voltage Control (DSW-RS4); (3) Regulation and Frequency Response 
(DSW-FR4); (4) Energy Imbalance (DSW-EI4); (5) Spinning Reserve (DSW-
SPR4); (6) Supplemental Reserve (DSW-SUR4), and (7) Generator Imbalance 
(DSW-GI2).
    Changes were made to the formula rates for Regulation and Frequency 
Response, Energy Imbalance, and Generator Imbalance. The formula rate 
for Regulation and Frequency Response now includes the application of 
variable capacity multipliers to the installed capacity of variable 
energy resources. The formula rates for Energy Imbalance and Generator 
Imbalance now have the same bandwidth structure for on-peak and off-
peak hours. No changes were made to the formula rates for the other 
ancillary services. Minor editorial changes were made to rate schedule 
language to provide clarification and make them more uniform and 
consistent.
    By Delegation Order No. 00-037.00A, effective October 25, 2013, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to the Administrator of WAPA; (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 FERC. Federal rules (10 CFR part 903) govern 
Department of Energy procedures for public participation in power and 
transmission rate adjustments.
    Under Delegation Order Nos. 00-037.00A and 00-001.00F and in 
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm, 
approve, and place Rate Order No. WAPA-175, which provides the formula 
rates for DSW transmission, transmission losses, unreserved use 
penalties, and ancillary services into effect on an interim basis. The 
new Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, DSW-
RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2 will be 
submitted promptly to FERC for confirmation and approval on a final 
basis.

    Dated: August 18, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY

DEPUTY SECRETARY

    In the matter of: Western Area Power Administration, Desert 
Southwest Region, Rate Adjustment for Transmission Service, 
Transmission Losses, Unreserved Use Penalties, and Ancillary 
Services.

Rate Order No. WAPA-175

ORDER CONFIRMING, APPROVING, AND PLACING FORMULA RATES FOR TRANSMISSION 
SERVICE, TRANSMISSION LOSSES, UNRESERVED USE PENALTIES, AND ANCILLARY 
SERVICES INTO EFFECT ON AN INTERIM BASIS

    The formula rates set forth in this order are established pursuant 
to Section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152). This act transferred to and vested in the Secretary of 
Energy the power marketing functions of the Secretary of the Department 
of the Interior and the Bureau of Reclamation under the

[[Page 58499]]

Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, particularly section 9(c) of the 
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and other acts that 
specifically apply to the projects involved.
    By Delegation Order No. 00[dash]037.00A, effective October 25, 
2013, the Secretary of Energy delegated: (1) the authority to develop 
power and transmission rates to the Administrator of the Western Area 
Power Administration (WAPA); (2) the authority to confirm, approve, and 
place such rates into effect on an interim basis to the Deputy 
Secretary of Energy; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand or to disapprove such 
rates to the Federal Energy Regulatory Commission (FERC). Federal rules 
(10 CFR part 903) govern DOE procedures for public participation in 
power and transmission rate adjustments.

Acronyms and Definitions

    As used in this Rate Order, the following acronyms and definitions 
apply:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Balancing Authority (BA).....  The responsible entity that integrates
                                resource plans ahead of time, maintains
                                load-interchange-generation balance
                                within a Balancing Authority Area, and
                                supports interconnection frequency in
                                real-time.
Balancing Authority (BA) Area  The collection of generation,
                                transmission, and loads within the
                                metered boundaries of the Balancing
                                Authority.
DOE..........................  United States Department of Energy.
DSW..........................  Desert Southwest Region.
FERC.........................  Federal Energy Regulatory Commission.
Kilowatt (kW)................  Electrical unit of capacity equal to
                                1,000 watts.
Megawatt (MW)................  Electrical unit of capacity equal to
                                1,000 kW or 1,000,000 watts.
Network......................  Network Integration Transmission Service.
OATT.........................  WAPA's revised Open Access Transmission
                                Tariff, effective May 13, 2013.
Open Access Same-Time          An electronic posting system that a
 Informaton System (OASIS).     service provider maintains for
                                transmission access data that allows
                                users to view information
                                simultaneously.
Transmission Service Provider  Any utility that owns, operates, or
 (TSP).                         controls facilities used to transmit
                                electric energy.
VAR..........................  Volt-Ampere Reactive, a unit by which
                                reactive power is expressed.
VER..........................  Variable energy resources.
WALC.........................  Western Area Lower Colorado Balancing
                                Authority.
WAPA.........................  Western Area Power Administration.
------------------------------------------------------------------------

Effective Date

    The provisional formula rates are effective on the first day of the 
first full billing period beginning on or after October 1, 2016, and 
will remain in effect through September 30, 2021, pending approval by 
FERC on a final basis or until superseded.

Public Notice and Comment

    WAPA followed the Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these formula rates and schedules. WAPA took the following 
steps to involve the public in the rate adjustment process:
    1. On July 2, 2015, WAPA notified DSW customers and interested 
parties by email of an informal meeting and posted this notice on its 
public website. On August 10, 2015, WAPA held an informal meeting to 
discuss DSW's rate proposals for transmission and ancillary services.
    2. WAPA published a Federal Register notice on February 3, 2016 (81 
FR 5741), announcing the proposed formula rates, initiating the 
90[dash]day public consultation and comment period, setting forth the 
date and location of public information and public comment forums, and 
outlining the procedures for public participation.
    3. On February 4, 2016, WAPA sent DSW customers and interested 
parties a copy of the notice.
    4. On March 30, 2016, WAPA held a public information forum in 
Phoenix, Arizona. WAPA's DSW representatives explained the need for the 
formula rate adjustment and proposed changes to the formula rates, 
answered questions, and provided presentation handouts.
    5. On March 30, 2016, following the public information forum, WAPA 
held a public comment forum in Phoenix, Arizona, to provide customers 
and interested parties an opportunity to comment for the record.
    6. WAPA established a public website to post information about this 
rate adjustment. The website is located at https://www.wapa.gov/regions/DSW/Rates/Pages/ancillary-rates.aspx.

Comments

    No oral comments were made at the public comment forum. WAPA 
received one written comment during the consultation and comment 
period. A written comment was received from Arizona Generation and 
Transmission Cooperatives, Benson, Arizona. The comment has been 
considered in preparing this Rate Order

Project Descriptions

    WAPA's DSW provides ancillary services through WALC, which 
encompasses the projects within its marketing area--Boulder Canyon 
Project (BCP), Parker-Davis Project (P-DP), Central Arizona Project 
(CAP), and the Pacific Northwest-Pacific Southwest Intertie Project 
(Intertie). Network is offered on the P-DP, CAP, and Intertie.

BCP

    Hoover Dam, authorized by the Boulder Canyon Project Act (45 Stat. 
1057, December 21, 1928), sits on the Colorado River along the Arizona-
Nevada border. Hoover Dam's power plant has 19 generating units (two 
for plant use) and an installed capacity of 2,078,800 kW (4,800 kW for 
plant use). High-voltage transmission lines and substations make it 
possible to deliver this power to southern Nevada, Arizona, and 
southern California.

P-DP

    P-DP was formed by consolidating two projects, Davis Dam and Parker 
Dam, under terms of the Act of May 28, 1954 (68 Stat. 143). Davis Dam's 
power plant has five generating units and an installed capacity of 
255,000 kW. Parker Dam's power plant has four generating units and an 
installed capacity of 120,000 kW. P-DP is operated in conjunction with 
the other Federal hydroelectric generation facilities in the Colorado 
River Basin. The project also includes 1,535 circuit miles of 
transmission lines in Arizona, southern Nevada, and along the Colorado 
River in California.

CAP

    Congress authorized CAP in 1968 to improve water resources in the 
Colorado River Basin (43 U.S.C. 1501). The

[[Page 58500]]

legislation also authorized Federal participation in the Navajo 
Generating Station, which has three coal-fired steam electric 
generating units with a combined capacity of 2,250,000 kW. The 24.3 
percent Federal share (546,750 kW) of the Navajo Generating Station is 
used to power the pumps that move Colorado River water through the CAP 
canals.

Intertie

    Intertie was authorized by Section 8 of the Pacific Northwest Power 
Marketing Act of August 31, 1964 (16 U.S.C. 837g). WAPA's portion of 
the Intertie consists of two parts, a northern portion and a southern 
portion. The northern portion is administered by WAPA's Sierra Nevada 
Region. The southern portion is administered by WAPA's DSW and consists 
of 865 circuit miles of extra high-voltage and 108 circuit miles of 
high-voltage transmission lines in Arizona, southern Nevada, and 
southern California.

Existing and Provisional Formula Rates

    The existing formula rates contained in Rate Schedules PD-NTS3, 
INT-NTS3, DSW-SD3, DSW-RS3, DSW-FR3, DSW-EI3, DSW-SPR3, DSW-SUR3, and 
DSW-GI1 expire on September 30, 2016. Several of these rate schedules 
contain formula rates that are calculated each fiscal year to include 
the most recent financial, load, and schedule information, as 
applicable. The new rate schedules continue with this approach.

Network

    The existing formula rates for Network on the P-DP and Intertie 
under Rate Schedules PD-NTS3 and INT-NTS3, respectively, are the 
following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.028

    The provisional formula rates for Network on the P-DP and Intertie 
under Rate Schedules PD-NTS4 and INT-NTS4 remain the same without 
adjustment.

Transmission Losses

    Rate Schedule DSW-TL1 is a new schedule that consolidates the 
provisions for transmission losses. This rate schedule will supersede 
the existing losses provisions in the separate transmission rate 
schedules for each project. The current loss percentages and their 
application remain unchanged.

Unreserved Use Penalties

    Rate Schedule DSW-UU1 is a new schedule that unifies and 
consolidates the penalty provisions for unreserved use. This rate 
schedule will supersede the existing unauthorized or unreserved use 
provisions in the separate transmission rate schedules for each 
project.

Scheduling, System Control, and Dispatch

    The existing formula rate for this service under Rate Schedule DSW-
SD3 is the following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.029

    The provisional formula rate for this service under Rate Schedule 
DSW-SD4 remains the same without adjustment.

Reactive Supply and Voltage Control

    The existing formula rate for this service under Rate Schedule DSW-
RS3 is the following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.030

    The provisional formula rate for this service under Rate Schedule 
DSW-RS4 remains the same without adjustment.

Regulation and Frequency Response

    The existing formula rate for this service under Rate Schedule DSW-
FR3 is the following:

[[Page 58501]]

[GRAPHIC] [TIFF OMITTED] TN25AU16.031

Energy Imbalance

    The existing formula rate for this service under Rate Schedule DSW-
EI3 is the following:

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5% (with a 4 MW minimum) of
 metered load.
Deviations greater than 1.5% up to 7.5% (or greater than   110% for under-deliveries (10%
 4 MW to 10 MW) of metered load.          penalty).
Deviations greater than 7.5% (or 10 MW) of metered load.   125% for under-deliveries (25%
                                          penalty).
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to +7.5%   60% for over-delivery (40%
 (with a 2 MW minimum) of metered load.   penalty).
Deviations less than or equal to -3.0%   110% for under-delivery (10%
 (with a 5 MW minimum) of metered load.   penalty).
------------------------------------------------------------------------

    The provisional formula rate for this service under Rate Schedule 
DSW-EI4 is the following

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
No Changes.............................  No Changes.
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5% (with a 4 MW minimum) of
 metered load.
Deviations greater than 1.5% up to 7.5% (or greater than   penalty), 110% for under-
 4 MW to 10 MW) of metered load.          deliveries (10% penalty).
Deviations greater than 7.5% (or 10 MW) of metered load.   penalty), 125% for under-
                                          deliveries (25% penalty).
------------------------------------------------------------------------


[[Page 58502]]

Operating Reserves--Spinning and Supplemental

    The existing formula rates for these services under Rate Schedules 
DSW-SPR3 and DSW-SUR3 are the following:
[GRAPHIC] [TIFF OMITTED] TN25AU16.037

    The provisional formula rates for these services under Rate 
Schedules DSW-SPR4 and DSW-SUR4 remain the same without adjustment.

Generator Imbalance

    The existing formula rate for this service under Rate Schedule DSW-
GI1 is the following:

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5% (with a 4 MW minimum) of
 metered generation.
Deviations greater than 1.5% up to 7.5% (or greater than   110%, for under-deliveries
 4 MW to 10 MW) of metered generation.    (10% penalty).
Deviations greater than 7.5% (or 10 MW) of metered         125%, for under-deliveries
 generation.                              (25% penalty).
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to +7.5%   60% for over-delivery (40%
 (with a 2 MW minimum) of metered         penalty).
 generation.
Deviations less than or equal to -3.0%   110% for under-delivery (10%
 (with a 5 MW minimum) of metered         penalty).
 generation.
------------------------------------------------------------------------

    The provisional formula rate for this service under Rate Schedule 
DSW-GI2 is the following:

------------------------------------------------------------------------
            Deviation bands                        Settlements
------------------------------------------------------------------------
                              On-Peak Hours
------------------------------------------------------------------------
No Changes.............................  No Changes.
------------------------------------------------------------------------
                             Off-Peak Hours
------------------------------------------------------------------------
Deviations less than or equal to 1.5%, (with a 4 MW minimum) of
 metered generation.
Deviations greater than 1.5% up to 7.5% (or greater than   penalty), 110% for under-
 4 MW to 10 MW) of metered generation.    deliveries (10% penalty).
Deviations greater than 7.5% (or 10 MW) of metered         penalty), 125% for under-
 generation.                              deliveries (25% penalty).
------------------------------------------------------------------------

Certification of Rates

    WAPA's Administrator certified that the provisional formula rates 
for Network, transmission losses, unreserved use penalties, and 
ancillary services under Rate Schedules PD-NTS4, INT-NTS4, DSW-TL1, 
DSW-UU1, DSW-SD4, DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and 
DSW-GI2 result in the lowest possible rates consistent with sound 
business principles. The provisional formula rates were developed 
following administrative policies and applicable laws.

Transmission Services Discussion

Network

    DSW offers Network to eligible customers, subject to the provisions 
in WAPA's OATT, from the P-DP, Intertie, and CAP transmission systems. 
This service includes the transmission of energy to points of delivery 
on the P-DP, Intertie, and CAP interconnected high-voltage systems, 
which includes transmission lines, substations, communication equipment 
and related facilities. The provisional formula rates only apply to 
Network from the P-DP and Intertie transmission systems. The formula 
rate for Network from the CAP transmission system was approved under 
Rate Order No. WAPA-172 and became effective on January 1, 2016.\2\ The 
formula rate for Network from CAP is identical to the provisional 
formula rates for P-DP and Intertie.
---------------------------------------------------------------------------

    \2\ Rate Order No. WAPA-172 was approved by the Deputy Secretary 
of Energy on December 21, 2015, (80 FR 81310, December 29, 2015) and 
filed with FERC.
---------------------------------------------------------------------------

    The monthly charge for Network is the product of the customer's 
load-ratio share and one-twelfth (\1/12\) of the annual revenue 
requirement for the appropriate transmission system. The load-ratio 
share is equal to the customer's hourly load coincident with

[[Page 58503]]

the monthly transmission system peak hour. The monthly transmission 
system peak hour occurs when the metered load for all network service 
customers is the greatest. The metered load and the transmission system 
load at the peak hour are averaged on a rolling 12-month basis (12-CP). 
No changes were made to the formula rates for Network.

Transmission Losses

    WALC provides transmission losses to TSPs within its BA Area. 
Capacity and energy losses occur when a TSP delivers electricity over 
its transmission facilities for a customer. Losses are assessed for 
transactions on transmission facilities within WALC.
    A single loss percentage for WALC was developed in 2004 and applied 
to the P-DP, Intertie, and CAP transmission systems. The loss 
provisions contained in the transmission service rate schedules for 
each project have been consolidated into a new single rate schedule. No 
changes were made to the existing loss percentage or application. The 
transmission loss percentage currently in effect is posted on WALC's 
OASIS.

Unreserved Use Penalties

    Unreserved use occurs when a customer uses transmission service it 
has not reserved or uses transmission service in excess of its reserved 
capacity. Unreserved use may also include a customer's failure to 
curtail transmission when requested.
    The penalty provisions for unreserved use in the transmission 
service rate schedules for each project have been unified and 
consolidated into a new single rate schedule. The penalty for a 
customer that engages in unreserved use is two times the maximum 
allowable firm point-to-point transmission rate for the service at 
issue, assessed as follows:
    (1) The penalty for one instance in a single hour is based on the 
daily short-term rate;
    (2) The penalty for more than one instance for any given duration 
(e.g., daily) increases to the next longest duration (e.g., weekly).
    A transmission customer is also required to pay for all ancillary 
services provided and associated with the unreserved use. The customer 
must pay for ancillary services based on the amount of transmission 
service it used and did not reserve.

Ancillary Services Discussion

    In accordance with WAPA's OATT, ancillary services are needed with 
transmission service to maintain reliability inside and among the BA 
Areas affected by the transmission service. WAPA's DSW currently 
provides seven ancillary services under the OATT: (1) Scheduling, 
System Control and Dispatch; (2) Reactive Supply and Voltage Control; 
(3) Regulation and Frequency Response; (4) Energy Imbalance; (5) 
Spinning Reserve; (6) Supplemental Reserve; and (7) Generator 
Imbalance. The provisional formula rates for these services are 
designed to recover the costs incurred for providing each of the 
services.
    The first two ancillary services are defined by FERC as services 
that the TSP is required to provide directly, or indirectly by making 
arrangements with the BA, and the transmission customer is required to 
purchase. The remaining five ancillary services are services that the 
TSP (or the BA who performs the function for the TSP) must offer when 
transmission is used to serve load within the TSP's BA. The 
transmission customer must purchase these ancillary services from the 
TSP, acquire the services from a third party, or self-supply the 
services.

Scheduling, System Control, and Dispatch

    This service is required to schedule the movement of power through, 
out of, within, or into a BA Area and must be provided by the BA in 
which the facilities used for transmission are located. WALC will 
provide this service for all transmission customers within its BA Area.
    The charge per schedule per day is calculated by dividing the 
annual costs associated with scheduling (numerator) by the number of 
schedules per year (denominator). The numerator includes the costs of 
transmission scheduling personnel, facilities, equipment, software, and 
other related costs involved in providing the service. The denominator 
is the yearly total of daily tags that result in a schedule, excluding 
schedules that return energy in kind. No changes were made to this 
formula rate.

Reactive Supply and Voltage Control

    This service is required to maintain transmission voltages on DSW's 
transmission facilities within acceptable limits, using generation 
facilities and non-generation resources capable of producing (or 
absorbing) reactive power. This service must be provided for each 
transaction on the transmission facilities within the BA by the TSP (or 
the BA who performs this function for the TSP). WALC will perform this 
service for DSW's transmission system within its BA Area.
    The rate is calculated by dividing the annual revenue requirement 
for the service (numerator) by the transactions requiring the service 
(denominator). The numerator consists of the annual revenue requirement 
for generation multiplied by the percentage of resource capacity used 
for providing the service. That percentage is based on the nameplate 
power factor (one minus the power factor) for the generating units 
supplying service within WALC. The denominator consists of the 
transmission capacity of customers taking this service. No changes were 
made to this formula rate.

Regulation and Frequency Response

    This service is necessary to provide for the continuous balancing 
of resources, generation and interchange with load, as well as for 
maintaining scheduled interconnection frequency at sixty cycles per 
second. The obligation to maintain this balance between resources and 
load lies with the TSP (or the BA who performs this function for the 
TSP). DSW (via WALC) must offer this service when transmission is used 
to serve load within its BA Area.
    The rate is calculated by dividing the annual revenue requirement 
for the service (numerator) by the sum of the load within WALC that 
requires the service and the generating capacity associated with 
variable energy resources (denominator). The numerator includes the 
annual costs associated with plant-in-service, operation and 
maintenance, purchases of regulation products, purchases of power to 
support WALC's ability to regulate, and other related costs involved in 
providing the service. The denominator consists of the load within WALC 
that requires this service plus the product of the installed nameplate 
capacity of solar and wind generators serving load within WALC and the 
applicable capacity multipliers.
    The denominator has been changed to include the application of 
capacity multipliers. Although variable energy resources have not yet 
impacted WALC, including the multipliers will allow the formula rate to 
more accurately recover potential future costs from customers by 
following cost causation principles. WAPA's DSW will set the 
multipliers at a value of one until variable energy resources begin to 
adversely impact WALC's regulation needs.

Energy Imbalance

    This service is provided when differences occur between the 
scheduled and the actual delivery of energy to a load located within 
the BA Area over a single hour. DSW (via WALC) must offer this service 
when transmission is used to serve load within its BA Area.

[[Page 58504]]

    The charges for this service are based on a graduated bandwidth 
structure. The size of the deviation and whether the deviation occurs 
in on-peak or off-peak hours determines settlement. No changes were 
made to the deviation bands and settlements for on-peak hours. The 
bandwidth structure for off-peak hours was changed to consist of three 
deviation bands, similar to the on-peak structure. This aligns with 
FERC Order 890 guidelines with appropriate penalty adjustments for WALC 
operating conditions.

Spinning Reserve

    This service is needed to serve load immediately in the event of a 
system contingency and may be provided by generating units that are on-
line and loaded at less than maximum output. DSW (via WALC) must offer 
this service when transmission is used to serve load within its BA 
Area.
    WALC has no resources available to provide this service. DSW may 
obtain the service on a pass-through cost basis at market price plus an 
administrative fee. No changes were made to this formula rate.

Supplemental Reserve

    This service is needed to serve load in the event of a system 
contingency. It is not available immediately to serve load but is 
generally available within a short period of time after a system 
contingency event. DSW (via WALC) must offer this service when 
transmission is used to serve load within its BA Area.
    WALC has no resources available to provide this service. DSW may 
obtain the service on a pass-through cost basis at market price plus an 
administrative fee. No changes were made to this formula rate.

Generator Imbalance

    This service is provided when differences occur between the output 
of a generator located within the BA Area and a delivery schedule from 
that generator to another BA Area or a load within the TSP's BA Area 
over a single hour. DSW (via WALC) must offer this service, to the 
extent it is physically feasible to do so from its resources or from 
resources available to it, when transmission is used to deliver energy 
from a generator located within its BA Area.
    The charges for this service are based on a graduated bandwidth 
structure. The size of the deviation and whether the deviation occurs 
in on-peak or off-peak hours determines settlement. No changes were 
made to the deviation bands and settlements for on-peak hours. The 
bandwidth structure for off-peak hours was changed to consist of three 
deviation bands, similar to the on-peak structure. This aligns with 
FERC Order 890 guidelines with appropriate penalty adjustments for WALC 
operating conditions.

Comments

    WAPA's DSW received one comment during the public consultation and 
comment period. The comment has been paraphrased where appropriate, 
without compromising the meaning of the comment.
    Comment: Customer supports the rates as developed but requests that 
WAPA clarify the obligation to update service agreements in line with 
the terms of WAPA's OATT. The customer also asks that WAPA clarify that 
the new rates and changes to underlying rate formulas constitute a 
change in formula, indicate to the Deputy Secretary what changes are 
required to the applicable service agreements, and notify WAPA's 
customers when the Deputy Secretary approves the rates on an interim 
basis.
    Response: Although WAPA believes its process is sufficiently clear, 
WAPA will consider clarifying the manner in which it updates service 
agreements as currently set forth in WAPA's OATT. However, review of 
WAPA's OATT language is outside the scope of this rate adjustment 
process. WAPA identifies in the Federal Register notice the new rate 
schedules and the changes that were made to the formula rates for 
ancillary services. WAPA will notify DSW customers when the Deputy 
Secretary approves the formula rates on an interim basis.

Availability of Information

    All brochures, studies, comments, letters, memorandums and other 
documents used by WAPA's DSW to develop the provisional formula rates 
are available for inspection and copying at the Desert Southwest 
Regional Office, Western Area Power Administration, 615 South 43rd 
Avenue, Phoenix, Arizona. Many of these documents are available on 
WAPA's DSW website at: https://www.wapa.gov/regions/DSW/Rates/Pages/ancillary-rates.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), WAPA 
has determined that this action is categorically excluded from 
preparing an environmental assessment or an environmental impact 
statement.

Determination Under Executive Order 12866

    WAPA 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.

Submission to the FERC

    The formula rates herein confirmed, approved, and placed into 
effect on an interim basis, together with supporting documents, will be 
submitted to FERC for confirmation and final approval.

ORDER

    In view of the foregoing and under the authority delegated to me, I 
confirm and approve on an interim basis, the formula rates under Rate 
Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, DSW-RS4, DSW-
FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2. These rate schedules are 
effective the first full billing period on or after October 1, 2016, 
and will remain in effect through September 30, 2021, pending FERC's 
confirmation and approval of them or substitute formula rates on a 
final basis.

    Dated: August 18, 2016.

Elizabeth Sherwood-Randall,

Deputy Secretary of Energy.

Rate Schedule PDP-NTS4

ATTACHMENT H to Tariff

(Supersedes Schedule PDP-NTS3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Parker-Davis Project

NETWORK INTEGRATION TRANSMISSION SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Transmission customers will compensate the Parker-Davis Project 
each month for Network Integration Transmission Service (Network) under 
the applicable Network Agreement and the formula rate described herein.

[[Page 58505]]

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.032

    Based on the formula rate, the Annual Transmission Revenue 
Requirement (ATRR) will be calculated for each fiscal year using 
updated financial data. The ATRR will be effective on October 1st of 
each year and posted on Western Area Lower Colorado Balancing 
Authority's website.

Rate Schedule INT-NTS4

ATTACHMENT H to Tariff

(Supersedes Schedule INT-NTS3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Pacific Northwest-Pacific Southwest Intertie Project

NETWORK INTEGRATION TRANSMISSION SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Transmission customers will compensate the Pacific Northwest-
Pacific Southwest Intertie Project each month for Network Integration 
Transmission Service (Network) under the applicable Network Agreement 
and the formula rate described herein.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.033

    Based on the formula rate, the Annual Transmission Revenue 
Requirement (ATRR) will be calculated for each fiscal year using 
updated financial data. The ATRR will be effective on October 1st of 
each year and posted on Western Area Lower Colorado Balancing 
Authority's website.

Rate Schedule DSW-TL1

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Western Area Lower Colorado Balancing Authority

TRANSMISSION LOSSES SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Capacity and energy losses occur when a Transmission Service 
Provider (TSP) delivers electricity over its transmission facilities 
for a transmission customer. The Western Area Lower Colorado Balancing 
Authority (WALC) provides this service to TSPs within its Balancing 
Authority Area. Transmission losses (losses) are assessed for 
transactions on transmission facilities within WALC, unless separate 
agreements specify the terms for losses. The losses applicable to 
Federal TSPs will be passed directly to transmission customers. The 
transmission customer must either purchase this service from WALC or 
make alternative comparable arrangements to satisfy their obligations 
for losses.

Formula Rate

    The loss percentage currently in effect is posted on WALC's website 
and may be changed from time to time. Financial settlement for losses 
will occur on a monthly basis, unless determined by WALC. Proxy prices 
used to determine financial settlement will be derived from the Palo 
Verde electricity price indexes, or similar alternative, for on-peak 
and off-peak. This pricing information is posted on WALC's website.

Rate Schedule DSW-UU1

SCHEDULE 10 to OATT

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

DESERT SOUTHWEST REGION

Central Arizona Project

Pacific Northwest-Pacific Southwest Intertie Project

Parker-Davis Project

UNRESERVED USE PENALTIES

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Unreserved use occurs when a customer uses transmission service it 
has not reserved or uses transmission service in excess of its reserved 
capacity. Unreserved use may also include a transmission customer's 
failure to curtail transmission when requested. The transmission 
customer shall compensate the Federal

[[Page 58506]]

Transmission Service Providers (TSP) each month for any unreserved use 
of the transmission system.

Penalty Rate

    The charge for a transmission customer that engages in unreserved 
use is two times the maximum allowable firm point-to-point transmission 
rate for the service at issue, assessed as follows:
    (1) The penalty for one instance in a single hour is based on the 
daily rate;
    (2) The penalty for more than one instance for any given duration 
(e.g., daily) increases to the next longest duration (e.g., weekly).
    A transmission 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 the Federal TSP and associated with the unreserved use. The 
customer will pay for ancillary services based on the amount of 
transmission service it used and did not reserve.

Rate Schedule DSW-SD4

SCHEDULE 1 to OATT

(Supersedes Schedule DSW-SD3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and

Western Area Lower Colorado Balancing Authority

SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Scheduling, System Control, and Dispatch Service is required to 
schedule the movement of power through, out of, within, or into the 
Balancing Authority Area (BA Area). This service can be provided only 
by the operator in which the transmission facilities used for 
transmission service are located. The Western Area Lower Colorado 
Balancing Authority (WALC) performs this service for all Transmission 
Service Providers (TSPs) within its BA Area. The transmission customer 
must purchase this service, unless other arrangements are made with 
WALC.
    The charge will be applied to all schedules, except for schedules 
that return energy in kind to WALC. WALC will accept any number of 
scheduling changes during the day without additional charge. The charge 
will be allocated equally among all TSPs, both Federal and non-Federal, 
listed on schedules inside its BA Area. The Federal transmission 
segments of the schedule are exempt from invoicing since the costs for 
these segments are included in applicable transmission service rates.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.034

    The charge per schedule per day is calculated by dividing the 
annual costs associated with scheduling (numerator) by the number of 
schedules per year (denominator). The numerator is the annual cost of 
transmission scheduling personnel, facilities, equipment, software, and 
other related costs involved in providing the service. The denominator 
is the yearly total of daily tags which result in a schedule, excluding 
schedules that return energy in kind.
    Based on the formula rate, the charge will be calculated each 
fiscal year using updated financial and schedule data. The charge will 
be effective on October 1st of each year and posted on WALC's website.

Rate Schedule DSW-RS4

SCHEDULE 2 to OATT

(Supersedes Schedule DSW-RS3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and

Western Area Lower Colorado Balancing Authority

REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION SOURCES OR OTHER 
SOURCES SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    In order to maintain transmission voltages on the transmission 
facilities within acceptable limits, generation facilities and non-
generation resources capable of providing Reactive Supply and Voltage 
Control (VAR Support Service) are operated to produce (or absorb) 
reactive power. This service must be provided for each transaction on 
the transmission facilities within the Balancing Authority (BA) by the 
Transmission Service Provider (TSP) or the BA who performs this 
function for the TSP.
    VAR Support Service will be provided by the Western Area Lower 
Colorado Balancing Authority (WALC). Customers of a Federal TSP must 
purchase this service from WALC unless the transmission customer has 
generating resources capable of providing VARs directly to the Federal 
TSP and has executed a contract stipulating all the provisions of their 
self-supply. If WALC provides VAR Support Service on behalf of any non-
Federal TSP, this service will be assessed on either the non-Federal 
TSP's reserved capacity or the scheduled quantity of the non-Federal 
TSP's customers.

Formula Rate

[[Page 58507]]

[GRAPHIC] [TIFF OMITTED] TN25AU16.035

    The numerator consists of the annual revenue requirement for 
generation multiplied by the percentage of resource capacity used for 
providing VAR Support Service. That percentage is based on the 
nameplate power factor (one minus the power factor) for the generating 
units supplying the service within WALC. The denominator consists of 
the transmission transactions within WALC that require this service.
    Based on the formula rate, the charge will be calculated each 
fiscal year using updated financial and reservation data. The charge 
will be effective on October 1st of each year and will be posted on 
WALC's website.

Rate Schedule DSW-FR4

SCHEDULE 3 to OATT

(Supersedes Schedule DSW-FR3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and

Western Area Lower Colorado Balancing Authority

REGULATION AND FREQUENCY RESPONSE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Regulation and Frequency Response Service (Regulation Service) is 
necessary to provide for the continuous balancing of resources, 
generation and interchange, with load, and for maintaining scheduled 
interconnection frequency at sixty cycles per second (60 Hz). The 
obligation to maintain this balance between resources and load lies 
with the Transmission Service Provider (TSP) or the Balancing Authority 
(BA) who performs this function for the TSP. The Western Area Lower 
Colorado Balancing Authority (WALC) performs this function for the 
Federal TSPs and must offer this service when transmission is used to 
serve load within its Balancing Authority Area (BA Area). Non-Federal 
TSPs and customers of Federal TSPs must purchase Regulation Service 
from WALC or make alternative comparable arrangements to satisfy their 
regulation obligations.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.036

    The numerator includes the annual costs associated with plant-in-
service, operation and maintenance, purchase of regulation products, 
purchases of power to support WALC's ability to regulate, and other 
related costs involved in providing the service. The denominator 
consists of the load within WALC that requires this service plus the 
product of the installed nameplate capacity of solar and wind 
generators serving load within WALC and the applicable capacity 
multipliers.
    Based on the formula rate, the charge will be calculated each 
fiscal year using updated financial and load data. The charge will be 
effective on October 1st of each year and will be posted on WALC's 
website.

Types of Assessments

    There are two different applications of this formula rate:
    1) A load-based assessment which is applicable to load within WALC 
(total metered load less Federal power allocation, including behind the 
meter generation rating, or if available, hourly data if generation is 
synchronized) and the installed nameplate capacity of all intermittent 
resources serving load within WALC.
    2) A self-provision assessment which allows entities with Automatic 
Generation Control (AGC) to self-provide for all or a portion of their 
loads. Entities with AGC are known as Sub-Balancing Authorities (SBA) 
and must meet all of the following criteria: (a) have a well-defined 
boundary, with WALC-approved revenue-quality metering, accurate as 
defined by the North American Electric Reliability Corporation (NERC), 
to include Megawatt (MW) flow data availability at 6-second or smaller 
intervals; (b) have AGC responsive unit(s); (c) demonstrate Regulation 
Service capability; and (d) execute a contract with WALC, provide all 
requested data, and meet the SBA error criteria below.
    Self-provision is measured by use of the entity's 1-minute average 
Area Control Error (ACE) to determine the amount of self-provision. The 
ACE is used to calculate the Regulation Service charges every hour as 
follows:
    1) If the entity's 1-minute average ACE for the hour is less than 
or equal to 0.5 percent of its hourly average load, no charge is 
assessed for that hour.
    2) If the entity's 1-minute average ACE for the hour is greater 
than or equal to 1.5 percent of the entity's hourly average load, WALC 
assess charges using the hourly load-based assessment applied to the 
entity's peak load for that month.

[[Page 58508]]

    3) If the entity's 1-minute average ACE for the hour is greater 
than 0.5 percent but less than 1.5 percent of its hourly average load, 
WALC assesses charges based on linear interpolation of no charge and 
full charge, using the hourly load-based assessment applied to the 
entity's peak load for that month.

WALC monitors the entity's self-provision on a regular basis. If WALC 
determines that the entity has not been attempting to self-regulate, 
WALC will, upon notification, employ the load-based assessment 
methodology described above.

Alternative Arrangements

    Exporting Intermittent Resource Requirement: An entity that exports 
the output from an intermittent generator to another BA Area will be 
required to dynamically meter or dynamically schedule that resource out 
of WALC to another BA unless arrangements, satisfactory to WALC, are 
made for that entity to acquire this service from a third-party or 
self-supply (as outlined below). An intermittent generator is one whose 
output is volatile and variable due to factors beyond direct 
operational control and, therefore, is not dispatchable.
    Self- or Third-party Supply: WALC may allow an entity to supply 
some or all of its required regulation, or contract with a third party. 
This entity must have revenue quality metering at every load and 
generation point, with accuracy as defined by NERC, to include MW flow 
data availability at 6-second (or smaller) intervals. WALC will 
evaluate the entity's metering, telecommunications and regulating 
resource, as well as the required level of regulation, to determine 
whether the entity qualifies to self-supply under this provision. If 
approved, the entity is required to enter into a separate agreement 
with WALC which will specify the terms of self-supply.

Customer Accommodation

    For entities unwilling to take Regulation Service, self-provide as 
described above, or obtain the service from a third party, WALC will 
assist the entity in dynamically metering its loads/resources to 
another BA. Until such time meter configuration is accomplished, the 
entity will be responsible for charges assessed under this schedule.

Rate Schedule DSW-EI4

SCHEDULE 4 to OATT

(Supersedes Schedule DSW-EI3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

ENERGY IMBALANCE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Energy Imbalance Service is provided when there is a difference 
between the scheduled and actual delivery of energy to a load located 
within a Balancing Authority Area (BA Area) over a single hour. The 
Transmission Service Provider (TSP) or the Balancing Authority (BA) who 
performs this function for the TSP must offer this service when 
transmission is used to serve load within its BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must 
purchase this service from WALC or make alternative comparable 
arrangements to satisfy their Energy Imbalance obligations. Non-Federal 
TSPs must have separate agreements with WALC that specify the terms of 
Energy Imbalance Service. WALC may charge a transmission customer for 
either energy imbalances under this schedule or generator imbalances 
under Schedule 9 for imbalances occurring during the same hour, but not 
both unless the imbalances aggravate rather than offset each other.

Formula Rate

    Charges for energy imbalances are based on the deviation bands as 
follows:
    1. For deviations within 1.5 percent (with a minimum of 
4 MW) of the metered load, the settlement for on-peak and off-peak 
hours is 100 percent.
    2. For deviations greater than 1.5 up to 7.5 percent 
(or greater than 4 MW up to 10 MW) of the metered load, the settlement 
for on-peak hours is 110 percent for under-delivery and 90 percent for 
over-delivery, and the settlement for off-peak hours is 110 percent for 
under-delivery and 75 percent for over-delivery.
    3. For deviations greater than 7.5 percent (or 10 MW) 
of the metered load, the settlement for on-peak hours is 125 percent 
for under-delivery and 75 percent for over-delivery, and the settlement 
for off-peak hours is 125 percent for under-delivery and 60 percent for 
over-delivery.

The deviation bands will be applied hourly and any energy imbalances 
that occur as a result of the transmission customer's scheduled 
transactions will be netted on a monthly basis and settled financially 
at the end of the month. For purposes of this schedule, the proxy 
prices used to determine financial settlement will be derived from the 
Palo Verde electricity price indexes, or similar alternative, for on-
peak and off-peak. WALC may accept settlement in energy in lieu of 
financial settlement.
    During periods of BA operating constraints, WALC reserves the right 
to eliminate credits for over-delivery. The cost to WALC of any penalty 
assessed by a regulatory authority due to a violation of operating 
standards resulting from under or over-delivery of energy may be passed 
through to customers.

Rate Schedule DSW-SPR4

SCHEDULE 5 to OATT

(Supersedes Schedule DSW-SPR3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

OPERATING RESERVE--SPINNING RESERVE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Spinning Reserve Service is needed to serve load immediately in the 
event of a system contingency and may be provided by generating units 
that are on-line and loaded at less than maximum output. The 
Transmission Service Provider (TSP) or the Balancing Authority (BA) who 
performs this function for the TSP must offer this service when 
transmission is used to serve load within its BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must

[[Page 58509]]

purchase this service from WALC or make alternative arrangements to 
satisfy their Spinning Reserve obligations.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN25AU16.038

    WALC has no Spinning Reserves available for sale. Upon request, 
WALC will purchase at market price and pass-through the cost plus an 
administrative fee that covers the cost of procuring and supplying 
Spinning Reserves. The customer will be responsible for providing the 
transmission needed to deliver the Spinning Reserves purchased.

Rate Schedule DSW-SUR4

SCHEDULE 6 to OATT

(Supersedes Schedule DSW-SPR3

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

OPERATING RESERVE--SUPPLEMENTAL RESERVE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Supplemental Reserve Service is needed to serve load in the event 
of a system contingency. It is not available immediately to serve load 
but is generally available within a short period of time after a system 
contingency event. This service may be provided by generating units 
that are on-line but unloaded, by quick-start generation, or by 
interruptible load. The Transmission Service Provider (TSP) or the 
Balancing Authority (BA) who performs this function for the TSP must 
offer this service when transmission is used to serve load within its 
BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must 
purchase this service from WALC or make alternative arrangements to 
satisfy their Supplemental Reserve obligations.

Formula Rate

------------------------------------------------------------------------
 
-------------------------------------------------------------------
Cost of Service = Market Price + Administrative Fee
------------------------------------------------------------------------

    WALC has no Supplemental Reserves for sale. Upon request, WALC will 
purchase at market price and pass-through the cost plus an 
administrative fee that covers the cost of procuring and supplying 
Supplemental Reserves. The customer will be responsible for providing 
the transmission needed to deliver.

Rate Schedule DSW-GI2

SCHEDULE 9 to OATT

(Supersedes Schedule DSW-GI1)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Desert Southwest Region and Western Area Lower Colorado Balancing 
Authority

GENERATOR IMBALANCE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and will remain in effect through September 30, 
2021, or until superseded.

Applicable

    Generator Imbalance Service is provided when a difference occurs 
between the output of a generator located in the Balancing Authority 
Area (BA Area) and the delivery schedule from that generator to another 
BA Area or a load within the Transmission Service Provider's (TSP) BA 
Area over a single hour. The TSP or the Balancing Authority (BA) who 
performs this function for the TSP must offer this service, to the 
extent it is physically feasible to do so from its resources or from 
resources available to it, when transmission is used to deliver energy 
from a generator located within its BA Area.
    The Western Area Lower Colorado Balancing Authority (WALC) performs 
this function for the Federal TSP. Customers of a Federal TSP must 
purchase this service from WALC or make alternative comparable 
arrangements to satisfy their Generator Imbalance obligations. Non-
Federal TSPs must have separate agreements with WALC that specify the 
terms of Generator Imbalance Service. An intermittent resource serving 
load outside WALC will be required to dynamically schedule or 
dynamically meter their generation to another BA Area unless 
arrangements, satisfactory to WALC, are made to acquire this service 
from a third-party. An intermittent resource, for the limited purpose 
of this schedule, is an electric generator that is not dispatchable and 
cannot store its fuel source, and therefore cannot respond to changes 
in demand or respond to transmission security constraints.
    WALC may charge a transmission customer for either generator 
imbalances under this schedule or energy imbalances under Schedule 4 
for imbalances occurring during the same hour, but not both unless the 
imbalances aggravate rather than offset each other.

Formula Rate

    Charges for generator imbalances are based on the deviation bands 
as follows:
    1. For deviations within 1.5 percent (with a minimum of 
4 MW) of the metered generation, the settlement for on-peak and off-
peak hours is 100 percent.
    2. For deviations greater than 1.5 up to 7.5 percent 
(or greater than 4 MW up to 10 MW) of the metered generation, the 
settlement for on-peak hours is 110 percent for under-delivery and 90 
percent for over-delivery, and the settlement for off-peak hours is 110 
percent for under-delivery and 75 percent for over-delivery.
    3. For deviations greater than 7.5 percent (or 10 MW) 
of the metered generation, the settlement for on-peak hours is 125 
percent for under-delivery and 75 percent for over-delivery, and the 
settlement for off-peak hours is 125 percent for under-delivery and 60 
percent for over-delivery. An intermittent resource will be exempt from 
this deviation band but will be subject to the settlement provisions in 
the second deviation band for all deviations greater than 7.5 percent (or 10 MW).
    The deviation bands will be applied hourly and any generator 
imbalances that occur as a result of the transmission customer's 
scheduled transactions will be netted on a monthly basis and settled 
financially at the end of the month. For purposes of this schedule, the 
proxy prices used to determine financial settlement will be derived 
from the Palo Verde electricity price indexes, or

[[Page 58510]]

similar alternative, for on-peak and off-peak. WALC may accept 
settlement in energy in lieu of financial settlement.
    During periods of BA operating constraints, WALC reserves the right 
to eliminate credits for over-delivery. The cost to WALC of any penalty 
assessed by a regulatory authority due to a violation of operating 
standards resulting from under or over-delivery of energy may be passed 
through to customers.

[FR Doc. 2016-20397 Filed 8-24-16; 8:45 am]
 BILLING CODE 6450-01-P



                                                                                Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices                                                 58497

                                                    withdrawal beyond the current                           DEPARTMENT OF EDUCATION                               information collection request (ICR) that
                                                    withdrawal expiration date. As part of                                                                        is described below. The Department of
                                                                                                            [Docket No. ED–2016–ICCD–0068]
                                                    the withdrawal extension, the Air Force                                                                       Education is especially interested in
                                                    proposes to continue military operations                Agency Information Collection                         public comment addressing the
                                                    on the NTTR’s existing 2,949,603 acres                  Activities; Submission to the Office of               following issues: (1) Is this collection
                                                    of land. In addition to extending the                   Management and Budget for Review                      necessary to the proper functions of the
                                                    existing land withdrawal, the Air Force                 and Approval; Comment Request; Carl                   Department; (2) will this information be
                                                    is also proposing to withdraw up to an                  D. Perkins Career and Technical                       processed and used in a timely manner;
                                                    additional 301,507 acres to improve the                 Education Improvement Act of 2006                     (3) is the estimate of burden accurate;
                                                                                                                                                                  (4) how might the Department enhance
                                                    range’s capacity to support military                    (Pub. L. 109–270) State Plan Guide
                                                                                                                                                                  the quality, utility, and clarity of the
                                                    testing and training.
                                                                                                            AGENCY: Office of Career, Technical, and              information to be collected; and (5) how
                                                       The alternatives being evaluated in                  Adult Education (OCTAE), Department                   might the Department minimize the
                                                    the LEIS include: (1) Extending the                     of Education (ED).                                    burden of this collection on the
                                                    existing land withdrawal and                            ACTION: Notice.                                       respondents, including through the use
                                                    management of the NTTR (Status Quo);                                                                          of information technology. Please note
                                                    (2) extending the existing land                         SUMMARY:    In accordance with the                    that written comments received in
                                                    withdrawal and providing the Air Force                  Paperwork Reduction Act of 1995 (44                   response to this notice will be
                                                    with increased access for military                      U.S.C. chapter 3501 et seq.), ED is                   considered public records.
                                                    activities in the South Range of the                    proposing an extension of an existing                    Title of Collection: Carl D. Perkins
                                                    NTTR; (3) Alternative 1 or 2 and                        information collection.                               Career and Technical Education
                                                    expanding the existing withdrawal by                    DATES: Interested persons are invited to              Improvement Act of 2006 (P.L. 109–270)
                                                    including up to 301,507 additional                      submit comments on or before                          State Plan Guide.
                                                                                                            September 26, 2016.                                      OMB Control Number: 1830–0029.
                                                    acres, via three sub-alternatives; (4)                                                                           Type of Review: An extension of an
                                                    establishing the time period of the                     ADDRESSES: To access and review all the
                                                                                                            documents related to the information                  existing information collection.
                                                    withdrawal as either 20 years, 50 years,                                                                         Respondents/Affected Public: State,
                                                    or as an indefinite military withdrawal;                collection listed in this notice, please
                                                                                                                                                                  Local, and Tribal Governments.
                                                    and (5) the No Action alternative which                 use http://www.regulations.gov by                        Total Estimated Number of Annual
                                                    includes returning NTTR lands to the                    searching the Docket ID number ED–                    Responses: 56.
                                                                                                            2016–ICCD–0068. Comments submitted                       Total Estimated Number of Annual
                                                    public domain, through the Department
                                                                                                            in response to this notice should be                  Burden Hours: 2,240.
                                                    of the Interior. The alternatives structure
                                                                                                            submitted electronically through the                     Abstract: This information collection
                                                    allows for combining elements of                        Federal eRulemaking Portal at http://
                                                    alternatives in an additive fashion. For                                                                      solicits from all eligible States and
                                                                                                            www.regulations.gov by selecting the                  outlying areas the State plans required
                                                    example, Alternative 2, could be                        Docket ID number or via postal mail,
                                                    selected along with sub-alternatives of                                                                       under Title I of the Carl D. Perkins
                                                                                                            commercial delivery, or hand delivery.                Career and Technical Education Act of
                                                    Alternatives 3 (an option for expansion)                Please note that comments submitted by                2006 (Perkins IV) (P.L. 109–270), as well
                                                    and 4 (option for duration) as part of the              fax or email and those submitted after                as, for those States and outlying areas
                                                    Air Force’s recommendation to Congress                  the comment period will not be                        that fail to meet 90 percent of their
                                                    for the future military withdrawal.                     accepted. Written requests for                        performance levels for an indicator for
                                                    Within the framework of these                           information or comments submitted by                  three consecutive years, periodic reports
                                                    alternatives, the LEIS will support                     postal mail or delivery should be                     on their progress in implementing the
                                                    Congressional action by identifying and                 addressed to the Director of the                      improvement plans required by section
                                                    evaluating potential impacts to land use,               Information Collection Clearance                      123(a)(1) of Perkins IV.
                                                    airspace, safety, noise, hazardous                      Division, U.S. Department of Education,                 Dated: August 22, 2016.
                                                    materials and solid waste, earth                        400 Maryland Avenue SW., LBJ, Room
                                                                                                                                                                  Tomakie Washington,
                                                    resources, water resources, air quality,                2E–349, Washington, DC 20202–4537.
                                                                                                                                                                  Acting Director, Information Collection
                                                    transportation, wilderness and                          FOR FURTHER INFORMATION CONTACT: For                  Clearance Division, Office of the Chief Privacy
                                                    wilderness study areas, cultural                        specific questions related to collection              Officer, Office of Management.
                                                    resources, biological resources,                        activities, please contact Braden Goetz,              [FR Doc. 2016–20370 Filed 8–24–16; 8:45 am]
                                                    socioeconomics, and environmental                       202–245–7405.                                         BILLING CODE 4000–01–P
                                                    justice.                                                SUPPLEMENTARY INFORMATION: The
                                                                                                            Department of Education (ED), in
                                                    Henry Williams,                                         accordance with the Paperwork                         DEPARTMENT OF ENERGY
                                                    Acting Air Force Federal Register Officer.              Reduction Act of 1995 (PRA) (44 U.S.C.
                                                    [FR Doc. 2016–20401 Filed 8–24–16; 8:45 am]             3506(c)(2)(A)), provides the general                  Western Area Power Administration
                                                    BILLING CODE 5001–10–P                                  public and Federal agencies with an
                                                                                                            opportunity to comment on proposed,                   Desert Southwest Region
                                                                                                            revised, and continuing collections of                Transmission, Transmission Losses,
                                                                                                            information. This helps the Department                Unreserved Use Penalties, and
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                                                                                                            assess the impact of its information                  Ancillary Services—Rate Order No.
                                                                                                            collection requirements and minimize                  WAPA–175
                                                                                                            the public’s reporting burden. It also                AGENCY:  Western Area Power
                                                                                                            helps the public understand the                       Administration, DOE.
                                                                                                            Department’s information collection
                                                                                                                                                                  ACTION: Notice of Final Formula Rates
                                                                                                            requirements and provide the requested
                                                                                                                                                                  for Transmission and Ancillary
                                                                                                            data in the desired format. ED is
                                                                                                                                                                  Services.
                                                                                                            soliciting comments on the proposed


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                                                    58498                       Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices

                                                    SUMMARY:   The Deputy Secretary of                      September 30, 2016.1 Several of these                 made to the formula rates for the other
                                                    Energy has confirmed and approved                       rate schedules contain formula rates that             ancillary services. Minor editorial
                                                    Rate Order No. WAPA–175 and Rate                        were calculated each year to include the              changes were made to rate schedule
                                                    Schedules PD–NTS4 and INT–NTS4,                         most recent financial, load, and                      language to provide clarification and
                                                    placing formula rates for Network                       schedule information, as applicable.                  make them more uniform and
                                                    Integration Transmission Service                        The new rate schedules continue this                  consistent.
                                                    (Network) on the Parker-Davis Project                   approach.                                                By Delegation Order No. 00–037.00A,
                                                    (P–DP) and Pacific Northwest-Pacific                                                                          effective October 25, 2013, the Secretary
                                                                                                            Transmission Services                                 of Energy delegated: (1) The authority to
                                                    Southwest Intertie Project (Intertie) of
                                                    the Western Area Power Administration                      Rate Schedules PD–NTS4 and INT–                    develop power and transmission rates to
                                                    (WAPA) into effect on an interim basis.                 NTS4 for Network on the P–DP and                      the Administrator of WAPA; (2) the
                                                    The Deputy Secretary also confirmed                     Intertie are based on a revenue                       authority to confirm, approve, and place
                                                    and approved Rate Schedules DSW–                        requirement that recovers the costs for               such rates into effect on an interim basis
                                                    TL1, DSW–UU1, DSW–SD4, DSW–RS4,                         providing transmission service. This                  to the Deputy Secretary of Energy; and
                                                    DSW–FR4, DSW–EI4, DSW–SPR4,                             includes the costs for scheduling,                    (3) the authority to confirm, approve,
                                                    DSW–SUR4, and DSW–GI2, placing                          system control, and dispatch service                  and place into effect on a final basis, to
                                                    formula rates for transmission losses,                  needed to provide the transmission                    remand or to disapprove such rates to
                                                    unreserved use penalties, and ancillary                 service.                                              FERC. Federal rules (10 CFR part 903)
                                                    services from WAPA’s Desert Southwest                      Rate Schedule DSW–TL1 for                          govern Department of Energy
                                                    Region (DSW) and Western Area Lower                     Transmission Losses is a new rate                     procedures for public participation in
                                                    Colorado Balancing Authority (WALC)                     schedule that provides for the recovery               power and transmission rate
                                                    into effect on an interim basis. The                    of losses associated with transmission                adjustments.
                                                    provisional formula rates will provide                  service. Previously, losses were                         Under Delegation Order Nos. 00–
                                                    sufficient revenue to pay all annual                    addressed in the transmission service                 037.00A and 00–001.00F and in
                                                    costs, including interest expense, and                  rate schedules for each project                       compliance with 10 CFR part 903 and
                                                    repay applicable investments within the                 administered by WAPA’s DSW.                           18 CFR part 300, I hereby confirm,
                                                    allowable periods.                                         Rate Schedule DSW–UU1 for                          approve, and place Rate Order No.
                                                                                                            Unreserved Use Penalties is also a new                WAPA–175, which provides the
                                                    DATES:   Rate Schedules PD–NTS4, INT–                   rate schedule that provides for a                     formula rates for DSW transmission,
                                                    NTS4, DSW–TL1, DSW–UU1, DSW–                            penalty, in addition to the usual charge              transmission losses, unreserved use
                                                    SD4, DSW–RS4, DSW–FR4, DSW–EI4,                         for transmission service, for the use of              penalties, and ancillary services into
                                                    DSW–SPR4, DSW–SUR4, and DSW–GI2                         transmission capacity that has not been               effect on an interim basis. The new Rate
                                                    are effective on the first day of the first             reserved or has been used in excess of                Schedules PD–NTS4, INT–NTS4, DSW–
                                                    full billing period beginning on or after               the amount reserved. Previously,                      TL1, DSW–UU1, DSW–SD4, DSW–RS4,
                                                    October 1, 2016, and will remain in                     penalty provisions for unauthorized use               DSW–FR4, DSW–EI4, DSW–SPR4,
                                                    effect through September 30, 2021,                      were included in the transmission                     DSW–SUR4, and DSW–GI2 will be
                                                    pending approval by the Federal Energy                  service rate schedules for each project               submitted promptly to FERC for
                                                    Regulatory Commission (FERC) on a                       administered by WAPA’s DSW.                           confirmation and approval on a final
                                                    final basis or until superseded.                                                                              basis.
                                                                                                            Ancillary Services
                                                    FOR FURTHER INFORMATION CONTACT:  Mr.                                                                           Dated: August 18, 2016.
                                                                                                              DSW provides seven ancillary
                                                    Ronald E. Moulton, Regional Manager,                                                                          Elizabeth Sherwood-Randall,
                                                                                                            services pursuant to WAPA’s Open
                                                    Desert Southwest Region, Western Area                                                                         Deputy Secretary of Energy.
                                                                                                            Access Transmission Tariff (OATT).
                                                    Power Administration, P.O. Box 6457,
                                                                                                            These services include: (1) Scheduling,               DEPARTMENT OF ENERGY
                                                    Phoenix, AZ 85005–6457, (602) 605–
                                                                                                            System Control, and Dispatch (DSW–
                                                    2453, or Mr. Scott Lund, Rates Manager,                                                                       DEPUTY SECRETARY
                                                                                                            SD4); (2) Reactive Supply and Voltage
                                                    Desert Southwest Region, Western Area
                                                                                                            Control (DSW–RS4); (3) Regulation and                   In the matter of: Western Area Power
                                                    Power Administration, P.O. Box 6457,                                                                          Administration, Desert Southwest Region,
                                                                                                            Frequency Response (DSW–FR4); (4)
                                                    Phoenix, AZ 85005–6457, (602) 605–                                                                            Rate Adjustment for Transmission Service,
                                                                                                            Energy Imbalance (DSW–EI4); (5)
                                                    2442, email slund@wapa.gov.                                                                                   Transmission Losses, Unreserved Use
                                                                                                            Spinning Reserve (DSW–SPR4); (6)
                                                                                                                                                                  Penalties, and Ancillary Services.
                                                    SUPPLEMENTARY INFORMATION:     WAPA’s                   Supplemental Reserve (DSW–SUR4),
                                                    DSW published a Federal Register                        and (7) Generator Imbalance (DSW–                     Rate Order No. WAPA–175
                                                    notice on February 3, 2016 (81 FR 5741),                GI2).                                                 ORDER CONFIRMING, APPROVING,
                                                    announcing the proposed formula rates,                    Changes were made to the formula                    AND PLACING FORMULA RATES
                                                    initiating a public consultation and                    rates for Regulation and Frequency                    FOR TRANSMISSION SERVICE,
                                                    comment period, and setting forth the                   Response, Energy Imbalance, and                       TRANSMISSION LOSSES,
                                                    date and location of public information                 Generator Imbalance. The formula rate                 UNRESERVED USE PENALTIES, AND
                                                    and comment forums. On February 4,                      for Regulation and Frequency Response                 ANCILLARY SERVICES INTO EFFECT
                                                    2016, customers and interested parties                  now includes the application of variable              ON AN INTERIM BASIS
                                                    were provided a copy of the published                   capacity multipliers to the installed
                                                                                                                                                                    The formula rates set forth in this
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                                                    notice. WAPA’s DSW held both forums                     capacity of variable energy resources.
                                                                                                            The formula rates for Energy Imbalance                order are established pursuant to
                                                    in Phoenix, Arizona, on March 30, 2016.
                                                                                                            and Generator Imbalance now have the                  Section 302 of the Department of Energy
                                                      The previous Rate Schedules PD–                                                                             (DOE) Organization Act (42 U.S.C.
                                                    NTS3, INT–NTS3, DSW–SD3, DSW–                           same bandwidth structure for on-peak
                                                                                                            and off-peak hours. No changes were                   7152). This act transferred to and vested
                                                    RS3, DSW–FR3, DSW–EI3, DSW–SPR3,                                                                              in the Secretary of Energy the power
                                                    DSW–SUR3, and DSW–GI1 for Rate                            1 Rate Order No. WAPA–151 was approved by           marketing functions of the Secretary of
                                                    Order No. WAPA–151 were approved                        FERC on a final basis on March 5, 2012, in Docket     the Department of the Interior and the
                                                    by FERC for a 5-year period through                     No. EF11–14–000 (138 FERC ¶ 62,198).                  Bureau of Reclamation under the


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                                                                                         Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices                                              58499

                                                    Reclamation Act of 1902 (ch. 1093, 32                               of Energy delegated: (1) the authority to             the Federal Energy Regulatory
                                                    Stat. 388), as amended and                                          develop power and transmission rates to               Commission (FERC). Federal rules (10
                                                    supplemented by subsequent laws,                                    the Administrator of the Western Area                 CFR part 903) govern DOE procedures
                                                    particularly section 9(c) of the                                    Power Administration (WAPA); (2) the                  for public participation in power and
                                                    Reclamation Project Act of 1939 (43                                 authority to confirm, approve, and place              transmission rate adjustments.
                                                    U.S.C. 485h(c)) and other acts that                                 such rates into effect on an interim basis
                                                                                                                                                                              Acronyms and Definitions
                                                    specifically apply to the projects                                  to the Deputy Secretary of Energy; and
                                                    involved.                                                           (3) the authority to confirm, approve,                  As used in this Rate Order, the
                                                       By Delegation Order No. 00-037.00A,                              and place into effect on a final basis, to            following acronyms and definitions
                                                    effective October 25, 2013, the Secretary                           remand or to disapprove such rates to                 apply:

                                                    Balancing Authority (BA) ......................              The responsible entity that integrates resource plans ahead of time, maintains load-interchange-genera-
                                                                                                                   tion balance within a Balancing Authority Area, and supports interconnection frequency in real-time.
                                                    Balancing Authority (BA) Area .............                  The collection of generation, transmission, and loads within the metered boundaries of the Balancing
                                                                                                                   Authority.
                                                    DOE ......................................................   United States Department of Energy.
                                                    DSW .....................................................    Desert Southwest Region.
                                                    FERC ....................................................    Federal Energy Regulatory Commission.
                                                    Kilowatt (kW) ........................................       Electrical unit of capacity equal to 1,000 watts.
                                                    Megawatt (MW) ....................................           Electrical unit of capacity equal to 1,000 kW or 1,000,000 watts.
                                                    Network ................................................     Network Integration Transmission Service.
                                                    OATT ....................................................    WAPA’s revised Open Access Transmission Tariff, effective May 13, 2013.
                                                    Open Access Same-Time Informaton                             An electronic posting system that a service provider maintains for transmission access data that allows
                                                       System (OASIS).                                             users to view information simultaneously.
                                                    Transmission Service Provider (TSP) ..                       Any utility that owns, operates, or controls facilities used to transmit electric energy.
                                                    VAR ......................................................   Volt-Ampere Reactive, a unit by which reactive power is expressed.
                                                    VER ......................................................   Variable energy resources.
                                                    WALC ...................................................     Western Area Lower Colorado Balancing Authority.
                                                    WAPA ...................................................     Western Area Power Administration.



                                                    Effective Date                                                        4. On March 30, 2016, WAPA held a                   Intertie Project (Intertie). Network is
                                                                                                                        public information forum in Phoenix,                  offered on the P–DP, CAP, and Intertie.
                                                       The provisional formula rates are
                                                                                                                        Arizona. WAPA’s DSW representatives
                                                    effective on the first day of the first full                                                                              BCP
                                                                                                                        explained the need for the formula rate
                                                    billing period beginning on or after                                                                                        Hoover Dam, authorized by the
                                                                                                                        adjustment and proposed changes to the
                                                    October 1, 2016, and will remain in                                                                                       Boulder Canyon Project Act (45 Stat.
                                                                                                                        formula rates, answered questions, and
                                                    effect through September 30, 2021,                                                                                        1057, December 21, 1928), sits on the
                                                                                                                        provided presentation handouts.
                                                    pending approval by FERC on a final                                                                                       Colorado River along the Arizona-
                                                    basis or until superseded.                                            5. On March 30, 2016, following the
                                                                                                                        public information forum, WAPA held a                 Nevada border. Hoover Dam’s power
                                                    Public Notice and Comment                                           public comment forum in Phoenix,                      plant has 19 generating units (two for
                                                                                                                        Arizona, to provide customers and                     plant use) and an installed capacity of
                                                      WAPA followed the Procedures for                                                                                        2,078,800 kW (4,800 kW for plant use).
                                                    Public Participation in Power and                                   interested parties an opportunity to
                                                                                                                        comment for the record.                               High-voltage transmission lines and
                                                    Transmission Rate Adjustments and                                                                                         substations make it possible to deliver
                                                    Extensions, 10 CFR part 903, in                                       6. WAPA established a public website                this power to southern Nevada, Arizona,
                                                    developing these formula rates and                                  to post information about this rate                   and southern California.
                                                    schedules. WAPA took the following                                  adjustment. The website is located at
                                                    steps to involve the public in the rate                             https://www.wapa.gov/regions/DSW/                     P–DP
                                                    adjustment process:                                                 Rates/Pages/ancillary-rates.aspx.                        P–DP was formed by consolidating
                                                      1. On July 2, 2015, WAPA notified                                 Comments                                              two projects, Davis Dam and Parker
                                                    DSW customers and interested parties                                                                                      Dam, under terms of the Act of May 28,
                                                    by email of an informal meeting and                                   No oral comments were made at the                   1954 (68 Stat. 143). Davis Dam’s power
                                                    posted this notice on its public website.                           public comment forum. WAPA received                   plant has five generating units and an
                                                    On August 10, 2015, WAPA held an                                    one written comment during the                        installed capacity of 255,000 kW. Parker
                                                    informal meeting to discuss DSW’s rate                              consultation and comment period. A                    Dam’s power plant has four generating
                                                    proposals for transmission and ancillary                            written comment was received from                     units and an installed capacity of
                                                    services.                                                           Arizona Generation and Transmission                   120,000 kW. P–DP is operated in
                                                      2. WAPA published a Federal                                       Cooperatives, Benson, Arizona. The                    conjunction with the other Federal
                                                    Register notice on February 3, 2016 (81                             comment has been considered in                        hydroelectric generation facilities in the
                                                    FR 5741), announcing the proposed                                   preparing this Rate Order                             Colorado River Basin. The project also
                                                    formula rates, initiating the 90-day
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                                                                                                                        Project Descriptions                                  includes 1,535 circuit miles of
                                                    public consultation and comment                                                                                           transmission lines in Arizona, southern
                                                    period, setting forth the date and                                    WAPA’s DSW provides ancillary                       Nevada, and along the Colorado River in
                                                    location of public information and                                  services through WALC, which                          California.
                                                    public comment forums, and outlining                                encompasses the projects within its
                                                    the procedures for public participation.                            marketing area—Boulder Canyon Project                 CAP
                                                      3. On February 4, 2016, WAPA sent                                 (BCP), Parker-Davis Project (P–DP),                     Congress authorized CAP in 1968 to
                                                    DSW customers and interested parties a                              Central Arizona Project (CAP), and the                improve water resources in the Colorado
                                                    copy of the notice.                                                 Pacific Northwest-Pacific Southwest                   River Basin (43 U.S.C. 1501). The


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                                                    58500                       Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices

                                                    legislation also authorized Federal                     Intertie consists of two parts, a northern            SUR3, and DSW–GI1 expire on
                                                    participation in the Navajo Generating                  portion and a southern portion. The                   September 30, 2016. Several of these
                                                    Station, which has three coal-fired                     northern portion is administered by                   rate schedules contain formula rates that
                                                    steam electric generating units with a                  WAPA’s Sierra Nevada Region. The                      are calculated each fiscal year to include
                                                    combined capacity of 2,250,000 kW.                      southern portion is administered by                   the most recent financial, load, and
                                                    The 24.3 percent Federal share (546,750                 WAPA’s DSW and consists of 865                        schedule information, as applicable.
                                                    kW) of the Navajo Generating Station is                 circuit miles of extra high-voltage and               The new rate schedules continue with
                                                    used to power the pumps that move                       108 circuit miles of high-voltage                     this approach.
                                                    Colorado River water through the CAP                    transmission lines in Arizona, southern
                                                    canals.                                                 Nevada, and southern California.                      Network
                                                    Intertie                                                Existing and Provisional Formula Rates                  The existing formula rates for
                                                      Intertie was authorized by Section 8                    The existing formula rates contained                Network on the P–DP and Intertie under
                                                    of the Pacific Northwest Power                          in Rate Schedules PD–NTS3, INT–                       Rate Schedules PD–NTS3 and INT–
                                                    Marketing Act of August 31, 1964 (16                    NTS3, DSW–SD3, DSW–RS3, DSW–                          NTS3, respectively, are the following:
                                                    U.S.C. 837g). WAPA’s portion of the                     FR3, DSW–EI3, DSW–SPR3, DSW–




                                                      The provisional formula rates for                     existing losses provisions in the                     the existing unauthorized or unreserved
                                                    Network on the P–DP and Intertie under                  separate transmission rate schedules for              use provisions in the separate
                                                    Rate Schedules PD–NTS4 and INT–                         each project. The current loss                        transmission rate schedules for each
                                                    NTS4 remain the same without                            percentages and their application                     project.
                                                    adjustment.                                             remain unchanged.
                                                                                                                                                                  Scheduling, System Control, and
                                                    Transmission Losses                                     Unreserved Use Penalties                              Dispatch
                                                      Rate Schedule DSW–TL1 is a new                          Rate Schedule DSW–UU1 is a new
                                                    schedule that consolidates the                          schedule that unifies and consolidates                   The existing formula rate for this
                                                    provisions for transmission losses. This                the penalty provisions for unreserved                 service under Rate Schedule DSW–SD3
                                                    rate schedule will supersede the                        use. This rate schedule will supersede                is the following:




                                                      The provisional formula rate for this                 Reactive Supply and Voltage Control
                                                    service under Rate Schedule DSW–SD4                        The existing formula rate for this
                                                    remains the same without adjustment.                    service under Rate Schedule DSW–RS3
                                                                                                            is the following:




                                                      The provisional formula rate for this                 Regulation and Frequency Response
                                                    service under Rate Schedule DSW–RS4                        The existing formula rate for this
                                                    remains the same without adjustment.                    service under Rate Schedule DSW–FR3
                                                                                                            is the following:
                                                                                                                                                                                                               EN25AU16.030</GPH>
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                                                                                                                                                                                                               EN25AU16.029</GPH>
                                                                                                                                                                                                               EN25AU16.028</GPH>




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                                                                                         Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices                                                           58501




                                                    Energy Imbalance
                                                       The existing formula rate for this
                                                    service under Rate Schedule DSW–EI3
                                                    is the following:

                                                                                             Deviation bands                                                                                  Settlements

                                                                                                                                                   On-Peak Hours

                                                      Deviations less than or equal to ±1.5% (with a 4 MW minimum) of me-                                       100% (no penalty).
                                                        tered load.
                                                      Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10                                      90% for over-deliveries and 110% for under-deliveries (10% penalty).
                                                        MW) of metered load.
                                                      Deviations greater than ±7.5% (or 10 MW) of metered load .................                                75% for over-deliveries and 125% for under-deliveries (25% penalty).

                                                                                                                                                   Off-Peak Hours

                                                      Deviations less than or equal to +7.5% (with a 2 MW minimum) of me-                                       60% for over-delivery (40% penalty).
                                                        tered load.
                                                      Deviations less than or equal to ¥3.0% (with a 5 MW minimum) of                                           110% for under-delivery (10% penalty).
                                                        metered load.



                                                       The provisional formula rate for this
                                                    service under Rate Schedule DSW–EI4
                                                    is the following

                                                                                             Deviation bands                                                                                  Settlements

                                                                                                                                                   On-Peak Hours

                                                      No Changes ............................................................................................   No Changes.

                                                                                                                                                   Off-Peak Hours

                                                      Deviations less than or equal to ±1.5% (with a 4 MW minimum) of me-                                       100% (no penalty).
                                                        tered load.
                                                      Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10                                      75% for over-deliveries (25% penalty), 110% for under-deliveries
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                        MW) of metered load.                                                                                      (10% penalty).
                                                      Deviations greater than ±7.5% (or 10 MW) of metered load .................                                60% for over-deliveries (40% penalty), 125% for under-deliveries
                                                                                                                                                                  (25% penalty).
                                                                                                                                                                                                                                       EN25AU16.031</GPH>




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                                                    58502                                Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices

                                                    Operating Reserves—Spinning and
                                                    Supplemental
                                                      The existing formula rates for these
                                                    services under Rate Schedules DSW–
                                                    SPR3 and DSW–SUR3 are the following:




                                                      The provisional formula rates for                                    Generator Imbalance
                                                    these services under Rate Schedules                                       The existing formula rate for this
                                                    DSW–SPR4 and DSW–SUR4 remain the                                       service under Rate Schedule DSW–GI1
                                                    same without adjustment.                                               is the following:

                                                                                             Deviation bands                                                                                  Settlements

                                                                                                                                                   On-Peak Hours

                                                      Deviations less than or equal to ±1.5% (with a 4 MW minimum) of me-                                       100% (no penalty).
                                                        tered generation.
                                                      Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10                                      90% for over-deliveries and 110%, for under-deliveries (10% penalty).
                                                        MW) of metered generation.
                                                      Deviations greater than ±7.5% (or 10 MW) of metered generation .......                                    75% for over-deliveries and 125%, for under-deliveries (25% penalty).

                                                                                                                                                   Off-Peak Hours

                                                      Deviations less than or equal to +7.5% (with a 2 MW minimum) of me-                                       60% for over-delivery (40% penalty).
                                                        tered generation.
                                                      Deviations less than or equal to ¥3.0% (with a 5 MW minimum) of                                           110% for under-delivery (10% penalty).
                                                        metered generation.



                                                       The provisional formula rate for this
                                                    service under Rate Schedule DSW–GI2
                                                    is the following:

                                                                                             Deviation bands                                                                                  Settlements

                                                                                                                                                   On-Peak Hours

                                                      No Changes ............................................................................................   No Changes.

                                                                                                                                                   Off-Peak Hours

                                                      Deviations less than or equal to ±1.5%, (with a 4 MW minimum) of                                          100% (no penalty).
                                                        metered generation.
                                                      Deviations greater than ±1.5% up to 7.5% (or greater than 4 MW to 10                                      75% for over-deliveries (25% penalty), 110% for under-deliveries
                                                        MW) of metered generation.                                                                                (10% penalty).
                                                      Deviations greater than ±7.5% (or 10 MW) of metered generation .......                                    60% for over-deliveries (40% penalty), 125% for under-deliveries
                                                                                                                                                                  (25% penalty).



                                                    Certification of Rates                                                 Transmission Services Discussion                              transmission system was approved
                                                                                                                                                                                         under Rate Order No. WAPA–172 and
                                                      WAPA’s Administrator certified that                                  Network
                                                                                                                                                                                         became effective on January 1, 2016.2
                                                    the provisional formula rates for                                         DSW offers Network to eligible                             The formula rate for Network from CAP
                                                    Network, transmission losses,                                          customers, subject to the provisions in                       is identical to the provisional formula
                                                    unreserved use penalties, and ancillary                                WAPA’s OATT, from the P–DP, Intertie,                         rates for P–DP and Intertie.
                                                    services under Rate Schedules PD–                                      and CAP transmission systems. This                               The monthly charge for Network is
                                                    NTS4, INT–NTS4, DSW–TL1, DSW–                                          service includes the transmission of                          the product of the customer’s load-ratio
                                                    UU1, DSW–SD4, DSW–RS4, DSW–FR4,                                        energy to points of delivery on the P–                        share and one-twelfth (1⁄12) of the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    DSW–EI4, DSW–SPR4, DSW–SUR4, and                                       DP, Intertie, and CAP interconnected                          annual revenue requirement for the
                                                    DSW–GI2 result in the lowest possible                                  high-voltage systems, which includes                          appropriate transmission system. The
                                                    rates consistent with sound business                                   transmission lines, substations,                              load-ratio share is equal to the
                                                    principles. The provisional formula                                    communication equipment and related                           customer’s hourly load coincident with
                                                    rates were developed following                                         facilities. The provisional formula rates                       2 Rate Order No. WAPA–172 was approved by the
                                                    administrative policies and applicable                                 only apply to Network from the P–DP                           Deputy Secretary of Energy on December 21, 2015,
                                                    laws.                                                                  and Intertie transmission systems. The                        (80 FR 81310, December 29, 2015) and filed with
                                                                                                                                                                                                                                            EN25AU16.037</GPH>




                                                                                                                           formula rate for Network from the CAP                         FERC.



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                                                                                Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices                                          58503

                                                    the monthly transmission system peak                    service. WAPA’s DSW currently                         requiring the service (denominator). The
                                                    hour. The monthly transmission system                   provides seven ancillary services under               numerator consists of the annual
                                                    peak hour occurs when the metered                       the OATT: (1) Scheduling, System                      revenue requirement for generation
                                                    load for all network service customers is               Control and Dispatch; (2) Reactive                    multiplied by the percentage of resource
                                                    the greatest. The metered load and the                  Supply and Voltage Control; (3)                       capacity used for providing the service.
                                                    transmission system load at the peak                    Regulation and Frequency Response; (4)                That percentage is based on the
                                                    hour are averaged on a rolling 12-month                 Energy Imbalance; (5) Spinning Reserve;               nameplate power factor (one minus the
                                                    basis (12–CP). No changes were made to                  (6) Supplemental Reserve; and (7)                     power factor) for the generating units
                                                    the formula rates for Network.                          Generator Imbalance. The provisional                  supplying service within WALC. The
                                                                                                            formula rates for these services are                  denominator consists of the
                                                    Transmission Losses                                     designed to recover the costs incurred                transmission capacity of customers
                                                       WALC provides transmission losses to                 for providing each of the services.                   taking this service. No changes were
                                                    TSPs within its BA Area. Capacity and                      The first two ancillary services are               made to this formula rate.
                                                    energy losses occur when a TSP delivers                 defined by FERC as services that the
                                                    electricity over its transmission facilities            TSP is required to provide directly, or               Regulation and Frequency Response
                                                    for a customer. Losses are assessed for                 indirectly by making arrangements with                  This service is necessary to provide
                                                    transactions on transmission facilities                 the BA, and the transmission customer                 for the continuous balancing of
                                                    within WALC.                                            is required to purchase. The remaining                resources, generation and interchange
                                                       A single loss percentage for WALC                    five ancillary services are services that             with load, as well as for maintaining
                                                    was developed in 2004 and applied to                    the TSP (or the BA who performs the                   scheduled interconnection frequency at
                                                    the P–DP, Intertie, and CAP                             function for the TSP) must offer when                 sixty cycles per second. The obligation
                                                    transmission systems. The loss                          transmission is used to serve load                    to maintain this balance between
                                                    provisions contained in the                             within the TSP’s BA. The transmission                 resources and load lies with the TSP (or
                                                    transmission service rate schedules for                 customer must purchase these ancillary                the BA who performs this function for
                                                    each project have been consolidated                     services from the TSP, acquire the                    the TSP). DSW (via WALC) must offer
                                                    into a new single rate schedule. No                     services from a third party, or self-                 this service when transmission is used
                                                    changes were made to the existing loss                  supply the services.                                  to serve load within its BA Area.
                                                    percentage or application. The                                                                                  The rate is calculated by dividing the
                                                                                                            Scheduling, System Control, and
                                                    transmission loss percentage currently                                                                        annual revenue requirement for the
                                                                                                            Dispatch
                                                    in effect is posted on WALC’s OASIS.                                                                          service (numerator) by the sum of the
                                                                                                              This service is required to schedule
                                                    Unreserved Use Penalties                                                                                      load within WALC that requires the
                                                                                                            the movement of power through, out of,
                                                                                                                                                                  service and the generating capacity
                                                       Unreserved use occurs when a                         within, or into a BA Area and must be
                                                                                                                                                                  associated with variable energy
                                                    customer uses transmission service it                   provided by the BA in which the
                                                                                                                                                                  resources (denominator). The numerator
                                                    has not reserved or uses transmission                   facilities used for transmission are
                                                                                                                                                                  includes the annual costs associated
                                                    service in excess of its reserved                       located. WALC will provide this service
                                                                                                                                                                  with plant-in-service, operation and
                                                    capacity. Unreserved use may also                       for all transmission customers within its
                                                                                                                                                                  maintenance, purchases of regulation
                                                    include a customer’s failure to curtail                 BA Area.
                                                                                                              The charge per schedule per day is                  products, purchases of power to support
                                                    transmission when requested.
                                                                                                            calculated by dividing the annual costs               WALC’s ability to regulate, and other
                                                       The penalty provisions for unreserved
                                                                                                            associated with scheduling (numerator)                related costs involved in providing the
                                                    use in the transmission service rate
                                                                                                            by the number of schedules per year                   service. The denominator consists of the
                                                    schedules for each project have been
                                                                                                            (denominator). The numerator includes                 load within WALC that requires this
                                                    unified and consolidated into a new
                                                                                                            the costs of transmission scheduling                  service plus the product of the installed
                                                    single rate schedule. The penalty for a
                                                                                                            personnel, facilities, equipment,                     nameplate capacity of solar and wind
                                                    customer that engages in unreserved use
                                                                                                            software, and other related costs                     generators serving load within WALC
                                                    is two times the maximum allowable
                                                                                                            involved in providing the service. The                and the applicable capacity multipliers.
                                                    firm point-to-point transmission rate for
                                                    the service at issue, assessed as follows:              denominator is the yearly total of daily                The denominator has been changed to
                                                       (1) The penalty for one instance in a                tags that result in a schedule, excluding             include the application of capacity
                                                    single hour is based on the daily short-                schedules that return energy in kind. No              multipliers. Although variable energy
                                                    term rate;                                              changes were made to this formula rate.               resources have not yet impacted WALC,
                                                       (2) The penalty for more than one                                                                          including the multipliers will allow the
                                                                                                            Reactive Supply and Voltage Control                   formula rate to more accurately recover
                                                    instance for any given duration (e.g.,
                                                    daily) increases to the next longest                       This service is required to maintain               potential future costs from customers by
                                                    duration (e.g., weekly).                                transmission voltages on DSW’s                        following cost causation principles.
                                                       A transmission customer is also                      transmission facilities within acceptable             WAPA’s DSW will set the multipliers at
                                                    required to pay for all ancillary services              limits, using generation facilities and               a value of one until variable energy
                                                    provided and associated with the                        non-generation resources capable of                   resources begin to adversely impact
                                                    unreserved use. The customer must pay                   producing (or absorbing) reactive power.              WALC’s regulation needs.
                                                    for ancillary services based on the                     This service must be provided for each                Energy Imbalance
                                                                                                            transaction on the transmission facilities
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    amount of transmission service it used
                                                    and did not reserve.                                    within the BA by the TSP (or the BA                      This service is provided when
                                                                                                            who performs this function for the TSP).              differences occur between the
                                                    Ancillary Services Discussion                           WALC will perform this service for                    scheduled and the actual delivery of
                                                       In accordance with WAPA’s OATT,                      DSW’s transmission system within its                  energy to a load located within the BA
                                                    ancillary services are needed with                      BA Area.                                              Area over a single hour. DSW (via
                                                    transmission service to maintain                           The rate is calculated by dividing the             WALC) must offer this service when
                                                    reliability inside and among the BA                     annual revenue requirement for the                    transmission is used to serve load
                                                    Areas affected by the transmission                      service (numerator) by the transactions               within its BA Area.


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                                                    58504                       Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices

                                                      The charges for this service are based                hours. The bandwidth structure for off-               Guidelines (10 CFR part 1021), WAPA
                                                    on a graduated bandwidth structure.                     peak hours was changed to consist of                  has determined that this action is
                                                    The size of the deviation and whether                   three deviation bands, similar to the on-             categorically excluded from preparing
                                                    the deviation occurs in on-peak or off-                 peak structure. This aligns with FERC                 an environmental assessment or an
                                                    peak hours determines settlement. No                    Order 890 guidelines with appropriate                 environmental impact statement.
                                                    changes were made to the deviation                      penalty adjustments for WALC
                                                                                                            operating conditions.                                 Determination Under Executive Order
                                                    bands and settlements for on-peak
                                                                                                                                                                  12866
                                                    hours. The bandwidth structure for off-                 Comments
                                                    peak hours was changed to consist of                                                                            WAPA has an exemption from
                                                    three deviation bands, similar to the on-                  WAPA’s DSW received one comment                    centralized regulatory review under
                                                    peak structure. This aligns with FERC                   during the public consultation and                    Executive Order 12866; accordingly, no
                                                    Order 890 guidelines with appropriate                   comment period. The comment has                       clearance of this notice by the Office of
                                                    penalty adjustments for WALC                            been paraphrased where appropriate,                   Management and Budget is required.
                                                    operating conditions.                                   without compromising the meaning of
                                                                                                            the comment.                                          Submission to the FERC
                                                    Spinning Reserve                                           Comment: Customer supports the                       The formula rates herein confirmed,
                                                       This service is needed to serve load                 rates as developed but requests that                  approved, and placed into effect on an
                                                    immediately in the event of a system                    WAPA clarify the obligation to update                 interim basis, together with supporting
                                                    contingency and may be provided by                      service agreements in line with the                   documents, will be submitted to FERC
                                                    generating units that are on-line and                   terms of WAPA’s OATT. The customer                    for confirmation and final approval.
                                                    loaded at less than maximum output.                     also asks that WAPA clarify that the
                                                                                                            new rates and changes to underlying                   ORDER
                                                    DSW (via WALC) must offer this service
                                                    when transmission is used to serve load                 rate formulas constitute a change in                     In view of the foregoing and under the
                                                    within its BA Area.                                     formula, indicate to the Deputy                       authority delegated to me, I confirm and
                                                       WALC has no resources available to                   Secretary what changes are required to                approve on an interim basis, the formula
                                                    provide this service. DSW may obtain                    the applicable service agreements, and                rates under Rate Schedules PD–NTS4,
                                                    the service on a pass-through cost basis                notify WAPA’s customers when the                      INT–NTS4, DSW–TL1, DSW–UU1,
                                                    at market price plus an administrative                  Deputy Secretary approves the rates on                DSW–SD4, DSW–RS4, DSW–FR4,
                                                    fee. No changes were made to this                       an interim basis.                                     DSW–EI4, DSW–SPR4, DSW–SUR4, and
                                                    formula rate.                                              Response: Although WAPA believes                   DSW–GI2. These rate schedules are
                                                                                                            its process is sufficiently clear, WAPA               effective the first full billing period on
                                                    Supplemental Reserve                                    will consider clarifying the manner in                or after October 1, 2016, and will remain
                                                       This service is needed to serve load in              which it updates service agreements as                in effect through September 30, 2021,
                                                    the event of a system contingency. It is                currently set forth in WAPA’s OATT.                   pending FERC’s confirmation and
                                                    not available immediately to serve load                 However, review of WAPA’s OATT                        approval of them or substitute formula
                                                    but is generally available within a short               language is outside the scope of this rate            rates on a final basis.
                                                    period of time after a system                           adjustment process. WAPA identifies in
                                                                                                            the Federal Register notice the new rate                Dated: August 18, 2016.
                                                    contingency event. DSW (via WALC)
                                                                                                            schedules and the changes that were                   Elizabeth Sherwood-Randall,
                                                    must offer this service when
                                                    transmission is used to serve load                      made to the formula rates for ancillary               Deputy Secretary of Energy.
                                                    within its BA Area.                                     services. WAPA will notify DSW                        Rate Schedule PDP–NTS4
                                                       WALC has no resources available to                   customers when the Deputy Secretary
                                                    provide this service. DSW may obtain                    approves the formula rates on an                      ATTACHMENT H to Tariff
                                                    the service on a pass-through cost basis                interim basis.                                        (Supersedes Schedule PDP–NTS3)
                                                    at market price plus an administrative                  Availability of Information                           UNITED STATES DEPARTMENT OF
                                                    fee. No changes were made to this                                                                             ENERGY
                                                    formula rate.                                              All brochures, studies, comments,
                                                                                                            letters, memorandums and other                        WESTERN AREA POWER
                                                    Generator Imbalance                                     documents used by WAPA’s DSW to                       ADMINISTRATION
                                                       This service is provided when                        develop the provisional formula rates
                                                                                                            are available for inspection and copying              DESERT SOUTHWEST REGION
                                                    differences occur between the output of
                                                    a generator located within the BA Area                  at the Desert Southwest Regional Office,              Parker-Davis Project
                                                    and a delivery schedule from that                       Western Area Power Administration,                    NETWORK INTEGRATION
                                                    generator to another BA Area or a load                  615 South 43rd Avenue, Phoenix,                       TRANSMISSION SERVICE
                                                    within the TSP’s BA Area over a single                  Arizona. Many of these documents are
                                                    hour. DSW (via WALC) must offer this                    available on WAPA’s DSW website at:                   Effective
                                                    service, to the extent it is physically                 https://www.wapa.gov/regions/DSW/                       The first day of the first full billing
                                                    feasible to do so from its resources or                 Rates/Pages/ancillary-rates.aspx.                     period beginning on or after October 1,
                                                    from resources available to it, when                    RATEMAKING PROCEDURE                                  2016, and will remain in effect through
                                                    transmission is used to deliver energy                  REQUIREMENTS                                          September 30, 2021, or until
                                                    from a generator located within its BA
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                                                                                  superseded.
                                                    Area.                                                   Environmental Compliance
                                                       The charges for this service are based                 In compliance with the National                     Applicable
                                                    on a graduated bandwidth structure.                     Environmental Policy Act (NEPA) of                      Transmission customers will
                                                    The size of the deviation and whether                   1969, 42 U.S.C. 4321–4347; the Council                compensate the Parker-Davis Project
                                                    the deviation occurs in on-peak or off-                 on Environmental Quality Regulations                  each month for Network Integration
                                                    peak hours determines settlement. No                    for implementing NEPA (40 CFR parts                   Transmission Service (Network) under
                                                    changes were made to the deviation                      1500–1508); and DOE NEPA                              the applicable Network Agreement and
                                                    bands and settlements for on-peak                       Implementing Procedures and                           the formula rate described herein.


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                                                                                Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices                                           58505

                                                    Formula Rate




                                                      Based on the formula rate, the Annual                 Rate Schedule INT–NTS4                                2016, and will remain in effect through
                                                    Transmission Revenue Requirement                        ATTACHMENT H to Tariff                                September 30, 2021, or until
                                                    (ATRR) will be calculated for each fiscal                                                                     superseded.
                                                    year using updated financial data. The                  (Supersedes Schedule INT–NTS3)
                                                                                                                                                                  Applicable
                                                    ATRR will be effective on October 1st of                UNITED STATES DEPARTMENT OF
                                                    each year and posted on Western Area                    ENERGY                                                  Transmission customers will
                                                    Lower Colorado Balancing Authority’s                    WESTERN AREA POWER                                    compensate the Pacific Northwest-
                                                    website.                                                ADMINISTRATION                                        Pacific Southwest Intertie Project each
                                                                                                                                                                  month for Network Integration
                                                                                                            DESERT SOUTHWEST REGION
                                                                                                                                                                  Transmission Service (Network) under
                                                                                                            Pacific Northwest-Pacific Southwest                   the applicable Network Agreement and
                                                                                                            Intertie Project                                      the formula rate described herein.
                                                                                                            NETWORK INTEGRATION                                   Formula Rate
                                                                                                            TRANSMISSION SERVICE
                                                                                                            Effective
                                                                                                              The first day of the first full billing
                                                                                                            period beginning on or after October 1,




                                                      Based on the formula rate, the Annual                 customer. The Western Area Lower                      Rate Schedule DSW–UU1
                                                    Transmission Revenue Requirement                        Colorado Balancing Authority (WALC)                   SCHEDULE 10 to OATT
                                                    (ATRR) will be calculated for each fiscal               provides this service to TSPs within its
                                                    year using updated financial data. The                  Balancing Authority Area. Transmission                UNITED STATES DEPARTMENT OF
                                                    ATRR will be effective on October 1st of                losses (losses) are assessed for                      ENERGY
                                                    each year and posted on Western Area                    transactions on transmission facilities               WESTERN AREA POWER
                                                    Lower Colorado Balancing Authority’s                    within WALC, unless separate                          ADMINISTRATION
                                                    website.                                                agreements specify the terms for losses.              DESERT SOUTHWEST REGION
                                                    Rate Schedule DSW–TL1                                   The losses applicable to Federal TSPs
                                                                                                                                                                  Central Arizona Project
                                                                                                            will be passed directly to transmission
                                                    UNITED STATES DEPARTMENT OF                                                                                   Pacific Northwest-Pacific Southwest
                                                                                                            customers. The transmission customer
                                                    ENERGY                                                                                                        Intertie Project
                                                                                                            must either purchase this service from
                                                    WESTERN AREA POWER                                      WALC or make alternative comparable                   Parker-Davis Project
                                                    ADMINISTRATION                                          arrangements to satisfy their obligations
                                                                                                                                                                  UNRESERVED USE PENALTIES
                                                    DESERT SOUTHWEST REGION                                 for losses.
                                                                                                                                                                  Effective
                                                    Western Area Lower Colorado                             Formula Rate
                                                    Balancing Authority                                                                                             The first day of the first full billing
                                                                                                               The loss percentage currently in effect            period beginning on or after October 1,
                                                    TRANSMISSION LOSSES SERVICE                             is posted on WALC’s website and may                   2016, and will remain in effect through
                                                    Effective                                               be changed from time to time. Financial               September 30, 2021, or until
                                                                                                            settlement for losses will occur on a                 superseded.
                                                      The first day of the first full billing
                                                                                                            monthly basis, unless determined by                   Applicable
                                                    period beginning on or after October 1,
                                                    2016, and will remain in effect through                 WALC. Proxy prices used to determine
                                                                                                                                                                     Unreserved use occurs when a
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    September 30, 2021, or until                            financial settlement will be derived
                                                                                                                                                                  customer uses transmission service it
                                                    superseded.                                             from the Palo Verde electricity price                 has not reserved or uses transmission
                                                                                                            indexes, or similar alternative, for on-              service in excess of its reserved
                                                                                                                                                                                                              EN25AU16.033</GPH>




                                                    Applicable                                              peak and off-peak. This pricing                       capacity. Unreserved use may also
                                                       Capacity and energy losses occur                     information is posted on WALC’s                       include a transmission customer’s
                                                    when a Transmission Service Provider                    website.                                              failure to curtail transmission when
                                                    (TSP) delivers electricity over its                                                                           requested. The transmission customer
                                                                                                                                                                                                              EN25AU16.032</GPH>




                                                    transmission facilities for a transmission                                                                    shall compensate the Federal


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                                                    58506                       Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices

                                                    Transmission Service Providers (TSP)                    Rate Schedule DSW–SD4                                 Area (BA Area). This service can be
                                                    each month for any unreserved use of                    SCHEDULE 1 to OATT                                    provided only by the operator in which
                                                    the transmission system.                                                                                      the transmission facilities used for
                                                                                                            (Supersedes Schedule DSW–SD3)                         transmission service are located. The
                                                    Penalty Rate
                                                                                                            UNITED STATES DEPARTMENT OF                           Western Area Lower Colorado Balancing
                                                       The charge for a transmission                        ENERGY                                                Authority (WALC) performs this service
                                                    customer that engages in unreserved use                                                                       for all Transmission Service Providers
                                                    is two times the maximum allowable                      WESTERN AREA POWER
                                                                                                            ADMINISTRATION                                        (TSPs) within its BA Area. The
                                                    firm point-to-point transmission rate for
                                                                                                                                                                  transmission customer must purchase
                                                    the service at issue, assessed as follows:              Desert Southwest Region and                           this service, unless other arrangements
                                                       (1) The penalty for one instance in a
                                                    single hour is based on the daily rate;                 Western Area Lower Colorado                           are made with WALC.
                                                       (2) The penalty for more than one                    Balancing Authority                                      The charge will be applied to all
                                                    instance for any given duration (e.g.,                  SCHEDULING, SYSTEM CONTROL,                           schedules, except for schedules that
                                                    daily) increases to the next longest                    AND DISPATCH SERVICE                                  return energy in kind to WALC. WALC
                                                    duration (e.g., weekly).                                                                                      will accept any number of scheduling
                                                       A transmission customer that exceeds                 Effective
                                                                                                                                                                  changes during the day without
                                                    its reserved capacity at any point of                     The first day of the first full billing             additional charge. The charge will be
                                                    receipt or point of delivery, or a                      period beginning on or after October 1,               allocated equally among all TSPs, both
                                                    customer that uses transmission service                 2016, and will remain in effect through               Federal and non-Federal, listed on
                                                    at a point of receipt or point of delivery              September 30, 2021, or until                          schedules inside its BA Area. The
                                                    that it has not reserved, is required to                superseded.                                           Federal transmission segments of the
                                                    pay for all ancillary services provided                                                                       schedule are exempt from invoicing
                                                    by the Federal TSP and associated with                  Applicable
                                                                                                                                                                  since the costs for these segments are
                                                    the unreserved use. The customer will                     Scheduling, System Control, and                     included in applicable transmission
                                                    pay for ancillary services based on the                 Dispatch Service is required to schedule              service rates.
                                                    amount of transmission service it used                  the movement of power through, out of,
                                                    and did not reserve.                                    within, or into the Balancing Authority               Formula Rate




                                                      The charge per schedule per day is                    Rate Schedule DSW–RS4                                 capable of providing Reactive Supply
                                                    calculated by dividing the annual costs                 SCHEDULE 2 to OATT                                    and Voltage Control (VAR Support
                                                    associated with scheduling (numerator)                                                                        Service) are operated to produce (or
                                                    by the number of schedules per year                     (Supersedes Schedule DSW–RS3)                         absorb) reactive power. This service
                                                    (denominator). The numerator is the                     UNITED STATES DEPARTMENT OF                           must be provided for each transaction
                                                    annual cost of transmission scheduling                  ENERGY                                                on the transmission facilities within the
                                                    personnel, facilities, equipment,                                                                             Balancing Authority (BA) by the
                                                                                                            WESTERN AREA POWER                                    Transmission Service Provider (TSP) or
                                                    software, and other related costs                       ADMINISTRATION
                                                    involved in providing the service. The                                                                        the BA who performs this function for
                                                    denominator is the yearly total of daily                Desert Southwest Region and                           the TSP.
                                                    tags which result in a schedule,                        Western Area Lower Colorado                              VAR Support Service will be
                                                    excluding schedules that return energy                  Balancing Authority                                   provided by the Western Area Lower
                                                    in kind.                                                                                                      Colorado Balancing Authority (WALC).
                                                                                                            REACTIVE SUPPLY AND VOLTAGE                           Customers of a Federal TSP must
                                                      Based on the formula rate, the charge                 CONTROL FROM GENERATION                               purchase this service from WALC unless
                                                    will be calculated each fiscal year using               SOURCES OR OTHER SOURCES                              the transmission customer has
                                                    updated financial and schedule data.                    SERVICE                                               generating resources capable of
                                                    The charge will be effective on October                 Effective                                             providing VARs directly to the Federal
                                                    1st of each year and posted on WALC’s                                                                         TSP and has executed a contract
                                                    website.                                                  The first day of the first full billing
                                                                                                                                                                  stipulating all the provisions of their
                                                                                                            period beginning on or after October 1,
                                                                                                                                                                  self-supply. If WALC provides VAR
                                                                                                            2016, and will remain in effect through
                                                                                                                                                                  Support Service on behalf of any non-
                                                                                                            September 30, 2021, or until
                                                                                                                                                                  Federal TSP, this service will be
                                                                                                            superseded.
                                                                                                                                                                  assessed on either the non-Federal
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                            Applicable                                            TSP’s reserved capacity or the
                                                                                                                                                                  scheduled quantity of the non-Federal
                                                                                                              In order to maintain transmission
                                                                                                                                                                  TSP’s customers.
                                                                                                            voltages on the transmission facilities
                                                                                                            within acceptable limits, generation                  Formula Rate
                                                                                                            facilities and non-generation resources
                                                                                                                                                                                                              EN25AU16.034</GPH>




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                                                                                Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices                                           58507




                                                      The numerator consists of the annual                  Rate Schedule DSW–FR4                                 necessary to provide for the continuous
                                                    revenue requirement for generation                      SCHEDULE 3 to OATT                                    balancing of resources, generation and
                                                    multiplied by the percentage of resource                                                                      interchange, with load, and for
                                                    capacity used for providing VAR                         (Supersedes Schedule DSW–FR3)                         maintaining scheduled interconnection
                                                    Support Service. That percentage is                     UNITED STATES DEPARTMENT OF                           frequency at sixty cycles per second (60
                                                    based on the nameplate power factor                     ENERGY                                                Hz). The obligation to maintain this
                                                    (one minus the power factor) for the                    WESTERN AREA POWER                                    balance between resources and load lies
                                                    generating units supplying the service                  ADMINISTRATION                                        with the Transmission Service Provider
                                                    within WALC. The denominator                                                                                  (TSP) or the Balancing Authority (BA)
                                                                                                            Desert Southwest Region and
                                                    consists of the transmission transactions                                                                     who performs this function for the TSP.
                                                    within WALC that require this service.                  Western Area Lower Colorado                           The Western Area Lower Colorado
                                                                                                            Balancing Authority                                   Balancing Authority (WALC) performs
                                                      Based on the formula rate, the charge
                                                    will be calculated each fiscal year using               REGULATION AND FREQUENCY                              this function for the Federal TSPs and
                                                    updated financial and reservation data.                 RESPONSE SERVICE                                      must offer this service when
                                                    The charge will be effective on October                                                                       transmission is used to serve load
                                                                                                            Effective
                                                    1st of each year and will be posted on                                                                        within its Balancing Authority Area (BA
                                                                                                              The first day of the first full billing             Area). Non-Federal TSPs and customers
                                                    WALC’s website.
                                                                                                            period beginning on or after October 1,               of Federal TSPs must purchase
                                                                                                            2016, and will remain in effect through               Regulation Service from WALC or make
                                                                                                            September 30, 2021, or until                          alternative comparable arrangements to
                                                                                                            superseded.                                           satisfy their regulation obligations.
                                                                                                            Applicable
                                                                                                                                                                  Formula Rate
                                                                                                              Regulation and Frequency Response
                                                                                                            Service (Regulation Service) is




                                                      The numerator includes the annual                        1) A load-based assessment which is                AGC responsive unit(s); (c) demonstrate
                                                    costs associated with plant-in-service,                 applicable to load within WALC (total                 Regulation Service capability; and (d)
                                                    operation and maintenance, purchase of                  metered load less Federal power                       execute a contract with WALC, provide
                                                    regulation products, purchases of power                 allocation, including behind the meter                all requested data, and meet the SBA
                                                    to support WALC’s ability to regulate,                  generation rating, or if available, hourly            error criteria below.
                                                    and other related costs involved in                     data if generation is synchronized) and                  Self-provision is measured by use of
                                                    providing the service. The denominator                  the installed nameplate capacity of all               the entity’s 1-minute average Area
                                                    consists of the load within WALC that                   intermittent resources serving load                   Control Error (ACE) to determine the
                                                    requires this service plus the product of               within WALC.                                          amount of self-provision. The ACE is
                                                    the installed nameplate capacity of solar                  2) A self-provision assessment which               used to calculate the Regulation Service
                                                    and wind generators serving load within                 allows entities with Automatic                        charges every hour as follows:
                                                    WALC and the applicable capacity                        Generation Control (AGC) to self-
                                                    multipliers.                                            provide for all or a portion of their                    1) If the entity’s 1-minute average
                                                      Based on the formula rate, the charge                 loads. Entities with AGC are known as                 ACE for the hour is less than or equal
                                                                                                            Sub-Balancing Authorities (SBA) and                   to 0.5 percent of its hourly average load,
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    will be calculated each fiscal year using
                                                    updated financial and load data. The                    must meet all of the following criteria:              no charge is assessed for that hour.
                                                    charge will be effective on October 1st                 (a) have a well-defined boundary, with                   2) If the entity’s 1-minute average
                                                    of each year and will be posted on                      WALC-approved revenue-quality                         ACE for the hour is greater than or equal
                                                                                                                                                                                                               EN25AU16.036</GPH>




                                                    WALC’s website.                                         metering, accurate as defined by the                  to 1.5 percent of the entity’s hourly
                                                                                                            North American Electric Reliability                   average load, WALC assess charges
                                                    Types of Assessments                                    Corporation (NERC), to include                        using the hourly load-based assessment
                                                      There are two different applications of               Megawatt (MW) flow data availability at               applied to the entity’s peak load for that
                                                                                                                                                                                                               EN25AU16.035</GPH>




                                                    this formula rate:                                      6-second or smaller intervals; (b) have               month.


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                                                    58508                       Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices

                                                      3) If the entity’s 1-minute average                   Rate Schedule DSW–EI4                                    3. For deviations greater than ±7.5
                                                    ACE for the hour is greater than 0.5                    SCHEDULE 4 to OATT                                    percent (or 10 MW) of the metered load,
                                                    percent but less than 1.5 percent of its                                                                      the settlement for on-peak hours is 125
                                                    hourly average load, WALC assesses                      (Supersedes Schedule DSW–EI3)                         percent for under-delivery and 75
                                                    charges based on linear interpolation of                UNITED STATES DEPARTMENT OF                           percent for over-delivery, and the
                                                    no charge and full charge, using the                    ENERGY                                                settlement for off-peak hours is 125
                                                    hourly load-based assessment applied to                                                                       percent for under-delivery and 60
                                                                                                            WESTERN AREA POWER                                    percent for over-delivery.
                                                    the entity’s peak load for that month.                  ADMINISTRATION                                        The deviation bands will be applied
                                                    WALC monitors the entity’s self-                        Desert Southwest Region and Western                   hourly and any energy imbalances that
                                                    provision on a regular basis. If WALC                   Area Lower Colorado Balancing                         occur as a result of the transmission
                                                    determines that the entity has not been                 Authority                                             customer’s scheduled transactions will
                                                    attempting to self-regulate, WALC will,                                                                       be netted on a monthly basis and settled
                                                                                                            ENERGY IMBALANCE SERVICE
                                                    upon notification, employ the load-                                                                           financially at the end of the month. For
                                                    based assessment methodology                            Effective                                             purposes of this schedule, the proxy
                                                    described above.                                          The first day of the first full billing             prices used to determine financial
                                                                                                            period beginning on or after October 1,               settlement will be derived from the Palo
                                                    Alternative Arrangements                                                                                      Verde electricity price indexes, or
                                                                                                            2016, and will remain in effect through
                                                       Exporting Intermittent Resource                      September 30, 2021, or until                          similar alternative, for on-peak and off-
                                                    Requirement: An entity that exports the                 superseded.                                           peak. WALC may accept settlement in
                                                    output from an intermittent generator to                                                                      energy in lieu of financial settlement.
                                                                                                            Applicable                                               During periods of BA operating
                                                    another BA Area will be required to
                                                                                                               Energy Imbalance Service is provided               constraints, WALC reserves the right to
                                                    dynamically meter or dynamically                                                                              eliminate credits for over-delivery. The
                                                    schedule that resource out of WALC to                   when there is a difference between the
                                                                                                            scheduled and actual delivery of energy               cost to WALC of any penalty assessed
                                                    another BA unless arrangements,                                                                               by a regulatory authority due to a
                                                    satisfactory to WALC, are made for that                 to a load located within a Balancing
                                                                                                            Authority Area (BA Area) over a single                violation of operating standards
                                                    entity to acquire this service from a                                                                         resulting from under or over-delivery of
                                                    third-party or self-supply (as outlined                 hour. The Transmission Service
                                                                                                            Provider (TSP) or the Balancing                       energy may be passed through to
                                                    below). An intermittent generator is one                                                                      customers.
                                                                                                            Authority (BA) who performs this
                                                    whose output is volatile and variable
                                                                                                            function for the TSP must offer this                  Rate Schedule DSW–SPR4
                                                    due to factors beyond direct operational                service when transmission is used to
                                                    control and, therefore, is not                                                                                SCHEDULE 5 to OATT
                                                                                                            serve load within its BA Area.
                                                    dispatchable.                                              The Western Area Lower Colorado                    (Supersedes Schedule DSW–SPR3)
                                                       Self- or Third-party Supply: WALC                    Balancing Authority (WALC) performs                   UNITED STATES DEPARTMENT OF
                                                    may allow an entity to supply some or                   this function for the Federal TSP.                    ENERGY
                                                    all of its required regulation, or contract             Customers of a Federal TSP must
                                                    with a third party. This entity must have               purchase this service from WALC or                    WESTERN AREA POWER
                                                                                                            make alternative comparable                           ADMINISTRATION
                                                    revenue quality metering at every load
                                                    and generation point, with accuracy as                  arrangements to satisfy their Energy                  Desert Southwest Region and Western
                                                    defined by NERC, to include MW flow                     Imbalance obligations. Non-Federal                    Area Lower Colorado Balancing
                                                    data availability at 6-second (or smaller)              TSPs must have separate agreements                    Authority
                                                    intervals. WALC will evaluate the                       with WALC that specify the terms of                   OPERATING RESERVE—SPINNING
                                                    entity’s metering, telecommunications                   Energy Imbalance Service. WALC may                    RESERVE SERVICE
                                                    and regulating resource, as well as the                 charge a transmission customer for
                                                                                                            either energy imbalances under this                   Effective
                                                    required level of regulation, to
                                                    determine whether the entity qualifies                  schedule or generator imbalances under                  The first day of the first full billing
                                                                                                            Schedule 9 for imbalances occurring                   period beginning on or after October 1,
                                                    to self-supply under this provision. If
                                                                                                            during the same hour, but not both                    2016, and will remain in effect through
                                                    approved, the entity is required to enter
                                                                                                            unless the imbalances aggravate rather                September 30, 2021, or until
                                                    into a separate agreement with WALC                     than offset each other.
                                                    which will specify the terms of self-                                                                         superseded.
                                                    supply.                                                 Formula Rate                                          Applicable
                                                    Customer Accommodation                                    Charges for energy imbalances are                      Spinning Reserve Service is needed to
                                                                                                            based on the deviation bands as follows:              serve load immediately in the event of
                                                       For entities unwilling to take                         1. For deviations within ±1.5 percent               a system contingency and may be
                                                    Regulation Service, self-provide as                     (with a minimum of 4 MW) of the                       provided by generating units that are
                                                    described above, or obtain the service                  metered load, the settlement for on-peak              on-line and loaded at less than
                                                    from a third party, WALC will assist the                and off-peak hours is 100 percent.                    maximum output. The Transmission
                                                                                                              2. For deviations greater than ±1.5 up
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    entity in dynamically metering its                                                                            Service Provider (TSP) or the Balancing
                                                    loads/resources to another BA. Until                    to 7.5 percent (or greater than 4 MW up               Authority (BA) who performs this
                                                    such time meter configuration is                        to 10 MW) of the metered load, the                    function for the TSP must offer this
                                                    accomplished, the entity will be                        settlement for on-peak hours is 110                   service when transmission is used to
                                                    responsible for charges assessed under                  percent for under-delivery and 90                     serve load within its BA Area.
                                                    this schedule.                                          percent for over-delivery, and the                       The Western Area Lower Colorado
                                                                                                            settlement for off-peak hours is 110                  Balancing Authority (WALC) performs
                                                                                                            percent for under-delivery and 75                     this function for the Federal TSP.
                                                                                                            percent for over-delivery.                            Customers of a Federal TSP must


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                                                                                Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices                                           58509

                                                    purchase this service from WALC or                      make alternative arrangements to satisfy              Formula Rate
                                                                                                            their Spinning Reserve obligations.




                                                      WALC has no Spinning Reserves                           WALC has no Supplemental Reserves                   dynamically schedule or dynamically
                                                    available for sale. Upon request, WALC                  for sale. Upon request, WALC will                     meter their generation to another BA
                                                    will purchase at market price and pass-                 purchase at market price and pass-                    Area unless arrangements, satisfactory
                                                    through the cost plus an administrative                 through the cost plus an administrative               to WALC, are made to acquire this
                                                    fee that covers the cost of procuring and               fee that covers the cost of procuring and             service from a third-party. An
                                                    supplying Spinning Reserves. The                        supplying Supplemental Reserves. The                  intermittent resource, for the limited
                                                    customer will be responsible for                        customer will be responsible for                      purpose of this schedule, is an electric
                                                    providing the transmission needed to                    providing the transmission needed to                  generator that is not dispatchable and
                                                    deliver the Spinning Reserves                           deliver.                                              cannot store its fuel source, and
                                                    purchased.                                                                                                    therefore cannot respond to changes in
                                                                                                            Rate Schedule DSW–GI2
                                                                                                                                                                  demand or respond to transmission
                                                    Rate Schedule DSW–SUR4                                  SCHEDULE 9 to OATT                                    security constraints.
                                                    SCHEDULE 6 to OATT                                      (Supersedes Schedule DSW–GI1)                           WALC may charge a transmission
                                                                                                                                                                  customer for either generator
                                                    (Supersedes Schedule DSW–SPR3                           UNITED STATES DEPARTMENT OF                           imbalances under this schedule or
                                                    UNITED STATES DEPARTMENT OF                             ENERGY                                                energy imbalances under Schedule 4 for
                                                    ENERGY                                                  WESTERN AREA POWER                                    imbalances occurring during the same
                                                    WESTERN AREA POWER                                      ADMINISTRATION                                        hour, but not both unless the
                                                    ADMINISTRATION                                                                                                imbalances aggravate rather than offset
                                                                                                            Desert Southwest Region and Western
                                                                                                                                                                  each other.
                                                    Desert Southwest Region and Western                     Area Lower Colorado Balancing
                                                    Area Lower Colorado Balancing                           Authority                                             Formula Rate
                                                    Authority                                               GENERATOR IMBALANCE SERVICE                              Charges for generator imbalances are
                                                    OPERATING RESERVE—                                                                                            based on the deviation bands as follows:
                                                                                                            Effective                                                1. For deviations within ±1.5 percent
                                                    SUPPLEMENTAL RESERVE SERVICE
                                                                                                              The first day of the first full billing             (with a minimum of 4 MW) of the
                                                    Effective                                               period beginning on or after October 1,               metered generation, the settlement for
                                                                                                            2016, and will remain in effect through               on-peak and off-peak hours is 100
                                                      The first day of the first full billing
                                                                                                            September 30, 2021, or until                          percent.
                                                    period beginning on or after October 1,                                                                          2. For deviations greater than ±1.5 up
                                                                                                            superseded.
                                                    2016, and will remain in effect through                                                                       to 7.5 percent (or greater than 4 MW up
                                                    September 30, 2021, or until                            Applicable                                            to 10 MW) of the metered generation,
                                                    superseded.                                                Generator Imbalance Service is                     the settlement for on-peak hours is 110
                                                    Applicable                                              provided when a difference occurs                     percent for under-delivery and 90
                                                                                                            between the output of a generator                     percent for over-delivery, and the
                                                      Supplemental Reserve Service is                       located in the Balancing Authority Area               settlement for off-peak hours is 110
                                                    needed to serve load in the event of a                  (BA Area) and the delivery schedule                   percent for under-delivery and 75
                                                    system contingency. It is not available                 from that generator to another BA Area                percent for over-delivery.
                                                    immediately to serve load but is                        or a load within the Transmission                        3. For deviations greater than ±7.5
                                                    generally available within a short period               Service Provider’s (TSP) BA Area over                 percent (or 10 MW) of the metered
                                                    of time after a system contingency                      a single hour. The TSP or the Balancing               generation, the settlement for on-peak
                                                    event. This service may be provided by                  Authority (BA) who performs this                      hours is 125 percent for under-delivery
                                                    generating units that are on-line but                   function for the TSP must offer this                  and 75 percent for over-delivery, and
                                                    unloaded, by quick-start generation, or                 service, to the extent it is physically               the settlement for off-peak hours is 125
                                                    by interruptible load. The Transmission                 feasible to do so from its resources or               percent for under-delivery and 60
                                                    Service Provider (TSP) or the Balancing                 from resources available to it, when                  percent for over-delivery. An
                                                    Authority (BA) who performs this                        transmission is used to deliver energy                intermittent resource will be exempt
                                                    function for the TSP must offer this                    from a generator located within its BA                from this deviation band but will be
                                                    service when transmission is used to                    Area.                                                 subject to the settlement provisions in
                                                    serve load within its BA Area.                             The Western Area Lower Colorado                    the second deviation band for all
                                                      The Western Area Lower Colorado                       Balancing Authority (WALC) performs                   deviations greater than ±7.5 percent (or
                                                    Balancing Authority (WALC) performs                     this function for the Federal TSP.                    10 MW).
                                                    this function for the Federal TSP.                      Customers of a Federal TSP must                          The deviation bands will be applied
                                                    Customers of a Federal TSP must                         purchase this service from WALC or                    hourly and any generator imbalances
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    purchase this service from WALC or                      make alternative comparable                           that occur as a result of the transmission
                                                    make alternative arrangements to satisfy                arrangements to satisfy their Generator               customer’s scheduled transactions will
                                                    their Supplemental Reserve obligations.                 Imbalance obligations. Non-Federal                    be netted on a monthly basis and settled
                                                                                                            TSPs must have separate agreements                    financially at the end of the month. For
                                                    Formula Rate
                                                                                                            with WALC that specify the terms of                   purposes of this schedule, the proxy
                                                                                                            Generator Imbalance Service. An                       prices used to determine financial
                                                      Cost of Service = Market Price + Ad-
                                                        ministrative Fee
                                                                                                            intermittent resource serving load                    settlement will be derived from the Palo
                                                                                                                                                                                                               EN25AU16.038</GPH>




                                                                                                            outside WALC will be required to                      Verde electricity price indexes, or


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                                                    58510                       Federal Register / Vol. 81, No. 165 / Thursday, August 25, 2016 / Notices

                                                    similar alternative, for on-peak and off-               the comment includes profanity, threats,              parts 264 and 265, subparts B thru H;
                                                    peak. WALC may accept settlement in                     information claimed to be Confidential                the requirements applicable to BIF units
                                                    energy in lieu of financial settlement.                 Business Information (CBI) or other                   at 40 CFR part 266; and the RCRA Part
                                                       During periods of BA operating                       information whose disclosure is                       B permit application and modification
                                                    constraints, WALC reserves the right to                 restricted by statute.                                requirements at 40 CFR part 270.
                                                    eliminate credits for over-delivery. The                FOR FURTHER INFORMATION CONTACT:                         Form Numbers: None.
                                                    cost to WALC of any penalty assessed                    Peggy Vyas, Office of Resource                           Respondents/affected entities:
                                                    by a regulatory authority due to a                      Conservation and Recovery (mail code                  Business or other for-profit.
                                                    violation of operating standards                        5303P), Environmental Protection                         Respondent’s obligation to respond:
                                                    resulting from under or over-delivery of                Agency, 1200 Pennsylvania Ave. NW.,                   Mandatory (per 40 CFR 264, 265, and
                                                    energy may be passed through to                         Washington, DC 20460; telephone                       270).
                                                    customers.                                              number: 703–308–5477; fax number:                        Estimated number of respondents:
                                                    [FR Doc. 2016–20397 Filed 8–24–16; 8:45 am]             703–308–8433; email address:                          114.
                                                    BILLING CODE 6450–01–P                                  vyas.peggy@epa.gov.                                      Frequency of response: On occasion.
                                                                                                            SUPPLEMENTARY INFORMATION:                               Total estimated burden: 291,757
                                                                                                            Supporting documents which explain in                 hours per year. Burden is defined at 5
                                                    ENVIRONMENTAL PROTECTION                                detail the information the EPA will be                CFR 1320.03(b).
                                                    AGENCY                                                  collecting are available in the public                   Total estimated cost: $21,004,550,
                                                                                                            docket for this ICR. The docket can be                which includes $9,839,942 annualized
                                                    [EPA–HQ–OLEM–2016–0465, FRL–9951–43–                                                                          labor costs and $11,164,608 annualized
                                                    OLEM]                                                   viewed online at www.regulations.gov
                                                                                                            or in person at the EPA Docket Center,                capital or O&M costs.
                                                                                                            WJC West, Room 3334, 1301                                Changes in Estimates: The burden
                                                    Agency Information Collection
                                                                                                            Constitution Ave. NW., Washington,                    hours are likely to stay substantially the
                                                    Activities; Proposed Collection;
                                                                                                            DC. The telephone number for the                      same.
                                                    Comment Request; Information
                                                    Requirements for Boilers and                            Docket Center is 202–566–1744. For                      Dated: August 17, 2016.
                                                    Industrial Furnaces                                     additional information about EPA’s                    Barnes Johnson,
                                                                                                            public docket, visit http://www.epa.gov/              Director, Office of Resource Conservation and
                                                    AGENCY: Environmental Protection                        dockets.                                              Recovery.
                                                    Agency (EPA).                                              Pursuant to section 3506(c)(2)(A) of               [FR Doc. 2016–20321 Filed 8–24–16; 8:45 am]
                                                    ACTION: Notice.                                         the PRA, the EPA is soliciting comments               BILLING CODE 6560–50–P
                                                                                                            and information to enable it to: (i)
                                                    SUMMARY:   The Environmental Protection                 Evaluate whether the proposed
                                                    Agency (EPA) is planning to submit the                  collection of information is necessary                ENVIRONMENTAL PROTECTION
                                                    information collection request (ICR),                   for the proper performance of the                     AGENCY
                                                    Information Requirements for Boilers                    functions of the Agency, including
                                                    and Industrial Furnaces (EPA ICR No.                    whether the information will have                     [FRL–9951–35–OA]
                                                    1361.17, OMB Control No. 2050–0073)                     practical utility; (ii) evaluate the
                                                    to the Office of Management and Budget                                                                        Meeting of the Local Government
                                                                                                            accuracy of the Agency’s estimate of the              Advisory Committee
                                                    (OMB) for review and approval in                        burden of the proposed collection of
                                                    accordance with the Paperwork                           information, including the validity of                AGENCY: Environmental Protection
                                                    Reduction Act (PRA) (44 U.S.C. 3501 et                  the methodology and assumptions used;                 Agency (EPA).
                                                    seq.). Before doing so, the EPA is                      (iii) enhance the quality, utility, and               ACTION: Notice.
                                                    soliciting public comments on specific                  clarity of the information to be
                                                    aspects of the proposed information                     collected; and (iv) minimize the burden               SUMMARY:    The Local Government
                                                    collection as described below. This is a                of the collection of information on those             Advisory Committee’s (LGAC)
                                                    proposed extension of the ICR, which is                 who are to respond, including through                 Protecting America’s Waters Workgroup
                                                    currently approved through December                     the use of appropriate automated                      is seeking input on the LGAC’s Charge
                                                    31, 2016. An Agency may not conduct                     electronic, mechanical, or other                      from the U.S. Environmental Protection
                                                    or sponsor and a person is not required                 technological collection techniques or                Agency (EPA) to give advice and
                                                    to respond to a collection of information               other forms of information technology,                recommendations to the Administrator
                                                    unless it displays a currently valid OMB                e.g., permitting electronic submission of             to inform the development of a National
                                                    control number.                                         responses. The EPA will consider the                  Action Plan for Drinking Water (Action
                                                    DATES: Comments must be submitted on                    comments received and amend the ICR                   Plan). The LGAC will provide their final
                                                    or before October 24, 2016.                             as appropriate. The final ICR package                 recommendations to the EPA
                                                    ADDRESSES: Submit your comments,                        will then be submitted to OMB for                     Administrator during the autumn of
                                                    referencing by Docket ID No. EPA–HQ–                    review and approval. At that time, the                2016.
                                                    OLEM–2016–0465, online using                            EPA will issue another Federal Register                  EPA is committed to working with
                                                    www.regulations.gov (our preferred                      notice to announce the submission of                  government partners, communities, and
                                                    method), by email to rcra-docket@                       the ICR to OMB and the opportunity to                 stakeholders to strengthen the nations
                                                    epa.gov, or by mail to: EPA Docket                      submit additional comments to OMB.                    drinking water systems. The LGAC
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    Center, Environmental Protection                           Abstract: EPA regulates the burning of             Protecting America’s Waters Workgroup
                                                    Agency, Mail Code 28221T, 1200                          hazardous waste in boilers, incinerators,             will have a series of meetings to hear
                                                    Pennsylvania Ave. NW., Washington,                      and industrial furnaces (BIFs) under 40               from local elected and appointed
                                                    DC 20460.                                               CFR parts 63, 264, 265, 266 and 270.                  officials. These meetings will be held on
                                                      EPA’s policy is that all comments                     This ICR describes the paperwork                      Wednesday, September 7th, 2016 at
                                                    received will be included in the public                 requirements that apply to the owners                 4:30–5:30 EDT; and Wednesday,
                                                    docket without change including any                     and operators of BIFs. This includes the              September 21st, 4:30–5:30 EDT via
                                                    personal information provided, unless                   general facility requirements at 40 CFR               teleconference. The focus of the


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Document Created: 2016-08-25 00:34:28
Document Modified: 2016-08-25 00:34:28
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 Final Formula Rates for Transmission and Ancillary Services.
DatesRate Schedules PD-NTS4, INT-NTS4, DSW-TL1, DSW-UU1, DSW-SD4, DSW-RS4, DSW-FR4, DSW-EI4, DSW-SPR4, DSW-SUR4, and DSW-GI2 are effective on the first day of the first full billing period beginning on or after October 1, 2016, and will remain in effect through September 30, 2021, pending approval by the Federal Energy Regulatory Commission (FERC) on a final basis or until superseded.
ContactMr. Ronald E. Moulton, Regional Manager, Desert Southwest Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2453, or Mr. Scott Lund, Rates Manager, Desert Southwest Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442, email [email protected]
FR Citation81 FR 58497 

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