82 FR 1335 - Washoe Project-Rate Order No. WAPA-176

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 82, Issue 3 (January 5, 2017)

The Deputy Secretary of Energy extended, on an interim basis, the existing Washoe Project, Stampede Division, Non-Firm Power Formula Rate, effective October 1, 2017, through September 30, 2022. The existing Non-Firm Power Formula Rate Schedule SNF-7 expires on September 30, 2017. The extended formula rate will be in effect on an interim basis until the Federal Energy Regulatory Commission (FERC) approves the extension on a final basis, or until superseded.

[Federal Register Volume 82, Number 3 (Thursday, January 5, 2017)]
[Notices]
[Pages 1335-1336]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31973]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Washoe Project-Rate Order No. WAPA-176

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order extending Washoe project, Stampede 
Division, non-firm power formula rate.

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SUMMARY: The Deputy Secretary of Energy extended, on an interim basis, 
the existing Washoe Project, Stampede Division, Non-Firm Power Formula 
Rate, effective October 1, 2017, through September 30, 2022. The 
existing Non-Firm Power Formula Rate Schedule SNF-7 expires on 
September 30, 2017. The extended formula rate will be in effect on an 
interim basis until the Federal Energy Regulatory Commission (FERC) 
approves the extension on a final basis, or until superseded.

DATES: This action is effective October 1, 2017.

FOR FURTHER INFORMATION CONTACT: Mr. Subhash Paluru, Regional Manager, 
Sierra Nevada Region, Western Area Power Administration, 114 Parkshore 
Drive, Folsom, CA 95630-4710, telephone (916) 353-4418, email 
[email protected]; or Ms. Regina Rieger, Rates Manager, Sierra Nevada 
Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, 
CA 95630-4710, telephone (916) 353-4629, email [email protected].

SUPPLEMENTARY INFORMATION: On September 9, 2016, Western Area Power 
Administration (WAPA) proposed its intent to seek a five-year formula 
rate extension and allowed for a 30-day comment period in a Notice 
published in the Federal Register.\1\ No comments were received.
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    \1\ See 81 FR 62499 (September 9, 2016).
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    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
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, specifically 10 CFR 
903.23(a), govern Department of Energy procedures for this rate 
extension.
    Under Delegation Order No. 00-037.00B and in compliance with 10 CFR 
part 903, I hereby approve, on an interim basis, Rate Order No. WAPA-
176, which extends without adjustment, the existing Washoe Project, 
Stampede Division, Non-Firm Power Formula Rate, Rate Schedule SNF-7, 
through September 30, 2022. Rate Schedule SNF-7 will be submitted 
promptly to FERC for confirmation and approval on a final basis.

    Dated: December 23, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

Department of Energy

Deputy Secretary

    In the Matter of: Western Area Power Administration, Sierra 
Nevada Region, Extension of the Washoe Project, Stampede Division, 
Non-Firm Power Formula Rate, Rate Order No. WAPA-176.

Order Extending the Existing Washoe Project, Stampede Division, Non-
Firm Power Formula Rate on an Interim Basis

    The existing formula rate was established in accordance with 
Section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152). This act transferred to and vested in the Secretary of 
Energy the power marketing functions of the Secretary of the Department 
of the Interior and the Bureau of Reclamation under the Reclamation Act 
of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by 
subsequent laws, particularly section 9(c) of the Reclamation Project 
Act of 1939 (43 U.S.C. 485h(c)), section 5 of the Flood Control Act of 
1944 (16 U.S.C. 825s), and other acts that specifically apply to the 
project involved.
    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
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, 
specifically 10 CFR 903.23(a), govern Department of Energy procedures 
for this rate extension.

Background

    The existing Washoe Project Non-Firm Power Formula Rate, Rate 
Schedule SNF-7, expires on September 30, 2017. FERC confirmed and 
approved Rate Schedule SNF-7, on April 16, 2009,\1\ and the subsequent 
extension on September 5, 2013.\2\ WAPA published a notice in the 
Federal Register on September 9, 2016, proposing to further extend Rate 
Schedule SNF-7 for five

[[Page 1336]]

years, without adjustment.\3\ In accordance with 10 CFR 903.23(a), WAPA 
provided for a consultation and comment period that ended on October 
11, 2016. WAPA received no comments.
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    \1\ See U. S. Dept. of Energy, Western Area Power Admin., 127 
FERC ] 62,043 (2009).
    \2\ See U. S. Dept. of Energy, Western Area Power Admin., 144 
FERC ] 62,213 (2013).
    \3\ See 81 FR 62499 (September 9, 2016).
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Discussion

    Rate Schedule SNF-7 provides sufficient annual revenue to recover 
annual expenses, interest, and capital investments, within the cost 
recovery criteria set forth in DOE Order RA 6120.2. Congress, by 
legislation, declared all Washoe Project costs to be non-reimbursable 
except the Stampede Powerplant (Stampede).\4\ The average Stampede 
generation, approximately 10 gigawatt-hours annually, is used 
principally to provide energy for two Federal fish hatcheries. Since 
the Washoe Project has no Federally-owned transmission lines, WAPA 
contracted with Truckee Donner Public Utility District and the City of 
Fallon (TDPUD/Fallon) to accept Stampede generation and serve project 
use loads. Energy in excess of project use loads is integrated with the 
Central Valley Project (CVP) and marketed under the 2004 Power 
Marketing Plan. Pursuant to Rate Schedule SNF-7, each year, any 
remaining reimbursable expenses, in excess of the revenue collected 
under contract, are incorporated into the CVP power revenue 
requirement. For the proposed extension period, WAPA forecasts the 
Washoe Project cost to CVP to be approximately $255,000 annually.
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    \4\ See Fallon Paiute Shoshone Indian Tribes Water Rights 
Settlement Act, Pub. L. No. 101-618, 104 Stat. 3289, 3307 (1990).
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    Extending Rate Schedule SNF-7 will provide sufficient revenue to 
recover annual expenses, interest, and capital requirements, thus 
ensuring project repayment within the cost recovery criteria set forth 
in DOE Order RA 6120.2.

Order

    In view of the foregoing and under the authority delegated to me, I 
hereby extend, on an interim basis, the existing Washoe Project, 
Stampede Division, Non-Firm Power Formula Rate, Rate Schedule SNF-7. 
Rate Order No. WAPA-176 extends, without adjustment, Rate Schedule 
SNF[dash]7 through September 30, 2022. Rate Schedule SNF-7 shall remain 
in effect on an interim basis, pending FERC's confirmation and approval 
of this extension, or substitute formula rate, on a final basis.
Dated: December 23, 2016
Elizabeth Sherwood-Randall, Deputy Secretary of Energy

Rate Schedule SNF-7

(Supersedes Schedule SNF-6)

United States Department of Energy Western Area Power Administration

Sierra Nevada Region, Washoe Project, Stampede Division

Non-Firm Power Formula Rate

Effective:

    The first day of the first full billing period beginning on or 
after August 1, 2008, through September 30, 2022, or until superseded 
by another rate schedule, whichever occurs earlier.

Available:

    Within the marketing area served by the Sierra Nevada Region.

Applicable:

    To preference customers under the 2004 Power Marketing Plan and the 
applicable third party(ies) who are under contract (Contractor) with 
the Western Area Power Administration (WAPA).

Character and Conditions of Service:

    Alternating current, 60 hertz, three-phase, delivered and metered 
at the voltages and points established by contract.
    Non-Firm Power Formula Rate:
    In order to serve project use loads and effectively market the 
energy from Stampede, WAPA has contracted with a third party Contractor 
that provides for a Stampede Energy Exchange Account (SEEA). The SEEA 
is an annual energy exchange account for Stampede energy. In the SEEA, 
the revenues from sales (generation revenues) made at the SEEA Rate are 
reduced by the project use and station service power costs and SEEA 
administrative costs. WAPA applies the ratio of project use costs to 
the generation revenue recorded in the SEEA to determine a non-
reimbursable percentage. One hundred percent minus this non-
reimbursable percentage establishes a reimbursable percentage. This 
reimbursable percentage is then applied to the appropriate power-
related costs to determine the reimbursable costs for repayment. The 
reimbursable costs are then netted against generation revenues made at 
the SEEA Rate. As stipulated under the 2004 Power Marketing Plan, any 
remaining reimbursable costs, to include interest and annual capital 
costs, are then transferred to the Central Valley Project for 
incorporation into the CVP Power Revenue Requirement.

The formula rate for Stampede power is:

Stampede Annual Transferred PRR = Stampede Annual PRR--Stampede Revenue
Where:
Stampede Annual Transferred
Power Revenue Requirement (PRR) = Stampede Annual PRR as identified as 
a cost transferred to the CVP.
Stampede Annual PRR = The total PRR for Stampede required to repay all 
annual costs, including interest, and the investment within the 
allowable period.
Stampede Revenue = Revenue from applying the SEEA Rate to project 
generation.
Billing: Billing for the SEEA Rate will be as specified in the service 
agreement.
Adjustment for Losses: Losses will be accounted for under this rate 
schedule as stated in the service agreement.

[FR Doc. 2016-31973 Filed 1-4-17; 8:45 am]
 BILLING CODE 6450-01-P