82 FR 27813 - Boulder Canyon Project-Rate Order No. WAPA-178
DEPARTMENT OF ENERGY
Western Area Power Administration Federal Register Volume 82, Issue 116 (June 19, 2017)
Western Area Power Administration
Federal Register Volume 82, Issue 116 (June 19, 2017)
| Page Range | 27813-27814 | |
| FR Document | 2017-12700 |
[Federal Register Volume 82, Number 116 (Monday, June 19, 2017)] [Notices] [Pages 27813-27814] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12700] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Western Area Power Administration Boulder Canyon Project--Rate Order No. WAPA-178 AGENCY: Western Area Power Administration, DOE. ACTION: Notice of proposed rate-setting formulas for electric service and adjustment of fiscal year 2018 base charge and rates. ----------------------------------------------------------------------- SUMMARY: Western Area Power Administration (WAPA) is proposing to update the rate-setting formulas for electric service for the Boulder Canyon Project (BCP) under proposed Rate Schedule BCP-F10, and adjust the annual calculation for the fiscal year (FY) 2018 base charge and rates. The expiration of the current base charge and rates on September 30, 2017, and beginning of the new 50-year marketing period on October 1, 2018, require these actions. The current base charge under Rate Schedule BCP-F9 is not sufficient to cover all annual costs including operation and maintenance, replacements, and interest expense; and repay investment obligations within the allowable period. After collaborating with the BCP contractors, WAPA proposes an FY 2018 base charge that includes a one-time $15 million working capital fund primarily for the Bureau of Reclamation (Reclamation) for the new marketing period. The FY 2019 base charge is expected to decrease by $15 million after the collection of working capital in FY 2018. The proposed base charge will provide sufficient revenue to cover all annual costs and repay investment obligations within the allowable period. WAPA will post proposed Rate Schedule BCP-F10 and a detailed rate package that identifies the reasons for the base charge and rates adjustment on its Web site during the consultation and comment period. The proposed base charge and rates are scheduled to become effective on October 1, 2017, and will remain in effect through September 30, 2018. Publication of this Federal Register notice initiates the formal public process to implement the proposed rate-setting formulas and the FY 2018 base charge and rates. DATES: The consultation and comment period begins today and will end September 18, 2017. WAPA will present a detailed explanation of the proposed rate-setting formulas and the FY 2018 base charge and rates at a public information forum that will be held on July 19, 2017, at 10:00 a.m. Mountain Standard Time (MST) in Phoenix, Arizona. WAPA will accept oral and written comments at a public comment forum that will be held on August 18, 2017, at 10:00 a.m. MST in Phoenix, Arizona. WAPA will accept written comments any time during the consultation and comment period. ADDRESSES: The public information forum and public comment forum will be held at WAPA's Desert Southwest Customer Service Regional Office located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Send written comments to Mr. Ronald E. Moulton, Regional Manager, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, Arizona 85005-6457, email [email protected]. WAPA will post information about the rate process, as well as comments received via letter and email on its Web site at: http://www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-rates.aspx. Written comments must be received by the end of the consultation and comment period to be considered by WAPA in its decision process. United States (U.S.) citizens who want to attend a forum must present an official form of picture identification (ID) such as a U.S. driver's license, U.S. passport, U.S. government ID, or U.S. military ID. Foreign nationals who want to attend a forum must contact Mr. Scott Lund, Rates Manager, at (602) 605-2442 or email [email protected] 30 days in advance of a forum to obtain the necessary clearance. FOR FURTHER INFORMATION CONTACT: Mr. Scott Lund, Rates Manager, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, Arizona 85005-6457, (602) 605-2442, or email [email protected]. SUPPLEMENTARY INFORMATION: BCP's base charge and rates for electric service are calculated annually based on formulas that are set for a five-year period. Since BCP begins a new 50-year marketing period in FY 2018, WAPA is proposing to update the rate-setting formulas effective October 1, 2017 through September 30, 2022. Proposed Rate Schedule BCP- F10 will update the existing forecast capacity rate formula to reflect BCP's current generating capacity of 2,074 megawatts. No other changes to the existing rate-setting formulas are proposed. The proposed FY 2018 base charge and rates for BCP electric service are designed to recover an annual revenue requirement that includes operation and maintenance and replacements costs, interest expense, investment repayments, payments to states, and visitor services expenses. The total costs are offset by the projected revenue from water sales, visitor services, ancillary services, and late fees. The annual revenue requirement is the base charge for electric service divided equally between capacity and energy. The annual composite rate is the base charge divided by annual energy sales. The proposed Rate Schedule BCP-F10 requires updated financial and hydrology data to calculate the annual base charge and rates. The proposed base charge for FY 2018 is $85,094,786 and the proposed composite rate is 24.39 mills/kilowatt-hour. The following table compares the existing and proposed base charge and composite rate: [[Page 27814]] Comparison of Existing and Proposed Base Charge and Composite Rate ---------------------------------------------------------------------------------------------------------------- Existing October 1, Proposed October 1, 2016 through 2017 through Percent change September 30, 2017 September 30, 2018 ---------------------------------------------------------------------------------------------------------------- Base Charge ($)............................... 69,662,289 85,094,786 22 Composite Rate (mills/kWh).................... 19.63 24.39 24 ---------------------------------------------------------------------------------------------------------------- The proposed FY 2018 base charge includes a one-time $15 million working capital fund primarily for Reclamation, which is an increase of approximately 22 percent compared to the FY 2017 base charge. Under the BCP Electric Service Contracts and Amended and Restated Implementation Agreements, Reclamation worked collaboratively with BCP contractors to establish the $15 million working capital fund for the new marketing period, to be collected in the FY 2018 base charge. The FY 2019 base charge is expected to decrease by $15 million after the collection of working capital in FY 2018 (subject to Reclamation's annual working capital evaluation). The working capital fund accounts for nearly all of the increase to the base charge. Increases in annual operation and maintenance and replacement costs, and decreases in debt service, uprating credits, non-power revenue, and carryover revenue account for the remaining increase to the base charge. The proposed FY 2018 composite rate represents an increase of approximately 24 percent compared to the FY 2017 composite rate. The increase in the proposed base charge accounts for the composite rate increase. This proposal, to be effective October 1, 2017, is preliminary and is subject to change upon publication of the final base charge and rates. Legal Authority In establishing rate-setting formulas for electric service and the base charge and rates for BCP, WAPA will follow the formal public process set forth in 10 CFR parts 903 and 904, and review all comments it receives on the proposed base charge and rates before taking action. WAPA is proposing this action under the Department of Energy (DOE) Organization Act (42 U.S.C. 7101-7352); the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent enactments; 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 WAPA's Administrator; (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy; and (3) the authority to confirm, approve, and place into effect on a final basis, to remand, or to disapprove such rates to the Federal Energy Regulatory Commission. Availability of Information All brochures, studies, comments, letters, memorandums, or other documents WAPA initiates or uses to develop the proposed rate-setting formulas and the base charge and rates will be available for inspection and copying at the Desert Southwest Customer Service Regional Office, Western Area Power Administration, located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Many of these documents and supporting information are available on WAPA's Web site at: http://www.wapa.gov/regions/DSW/Rates/Pages/boulder-canyon-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 is in the process of determining whether an environmental assessment or an environmental impact statement should be prepared or if this action can be categorically excluded from those requirements. Determination Under Executive Order 12866 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. Dated: May 4, 2017. Mark A. Gabriel, Administrator. [FR Doc. 2017-12700 Filed 6-16-17; 8:45 am] BILLING CODE 6450-01-P
![Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices 27813
Applicants: North American Electric period on October 1, 2018, require these and email on its Web site at: http://
Reliability Corporation. actions. www.wapa.gov/regions/DSW/Rates/
Description: Petition of the North The current base charge under Rate Pages/boulder-canyon-rates.aspx.
American Electric Reliability Schedule BCP–F9 is not sufficient to Written comments must be received by
Corporation for Approval of cover all annual costs including the end of the consultation and
Amendments to the Western Electricity operation and maintenance, comment period to be considered by
Coordinating Council Regional replacements, and interest expense; and WAPA in its decision process.
Reliability Standards Development repay investment obligations within the United States (U.S.) citizens who
Procedures. allowable period. After collaborating want to attend a forum must present an
Filed Date: 6/8/17. with the BCP contractors, WAPA official form of picture identification
Accession Number: 20170608–5107. proposes an FY 2018 base charge that (ID) such as a U.S. driver’s license, U.S.
Comments Due: 5 p.m. ET 6/29/17. includes a one-time $15 million passport, U.S. government ID, or U.S.
working capital fund primarily for the military ID. Foreign nationals who want
The filings are accessible in the
Bureau of Reclamation (Reclamation) for to attend a forum must contact Mr. Scott
Commission’s eLibrary system by
the new marketing period. The FY 2019 Lund, Rates Manager, at (602) 605–2442
clicking on the links or querying the
base charge is expected to decrease by or email slund@wapa.gov 30 days in
docket number.
$15 million after the collection of advance of a forum to obtain the
Any person desiring to intervene or
working capital in FY 2018. The necessary clearance.
protest in any of the above proceedings
proposed base charge will provide FOR FURTHER INFORMATION CONTACT: Mr.
must file in accordance with Rules 211
sufficient revenue to cover all annual Scott Lund, Rates Manager, Desert
and 214 of the Commission’s
costs and repay investment obligations Southwest Customer Service Region,
Regulations (18 CFR 385.211 and
within the allowable period. WAPA will Western Area Power Administration,
385.214) on or before 5:00 p.m. Eastern
post proposed Rate Schedule BCP–F10 P.O. Box 6457, Phoenix, Arizona 85005–
time on the specified comment date.
and a detailed rate package that 6457, (602) 605–2442, or email slund@
Protests may be considered, but
identifies the reasons for the base charge wapa.gov.
intervention is necessary to become a
and rates adjustment on its Web site SUPPLEMENTARY INFORMATION: BCP’s base
party to the proceeding.
during the consultation and comment charge and rates for electric service are
eFiling is encouraged. More detailed period. The proposed base charge and
information relating to filing calculated annually based on formulas
rates are scheduled to become effective that are set for a five-year period. Since
requirements, interventions, protests, on October 1, 2017, and will remain in
service, and qualifying facilities filings BCP begins a new 50-year marketing
effect through September 30, 2018. period in FY 2018, WAPA is proposing
can be found at: http://www.ferc.gov/ Publication of this Federal Register
docs-filing/efiling/filing-req.pdf. For to update the rate-setting formulas
notice initiates the formal public effective October 1, 2017 through
other information, call (866) 208–3676 process to implement the proposed rate-
(toll free). For TTY, call (202) 502–8659. September 30, 2022. Proposed Rate
setting formulas and the FY 2018 base Schedule BCP–F10 will update the
Dated: June 8, 2017. charge and rates. existing forecast capacity rate formula to
Kimberly D. Bose, DATES: The consultation and comment reflect BCP’s current generating capacity
Secretary. period begins today and will end of 2,074 megawatts. No other changes to
[FR Doc. 2017–12676 Filed 6–16–17; 8:45 am] September 18, 2017. WAPA will present the existing rate-setting formulas are
BILLING CODE 6717–01–P a detailed explanation of the proposed proposed.
rate-setting formulas and the FY 2018 The proposed FY 2018 base charge
base charge and rates at a public and rates for BCP electric service are
DEPARTMENT OF ENERGY information forum that will be held on designed to recover an annual revenue
July 19, 2017, at 10:00 a.m. Mountain requirement that includes operation and
Western Area Power Administration Standard Time (MST) in Phoenix, maintenance and replacements costs,
Arizona. WAPA will accept oral and interest expense, investment
Boulder Canyon Project—Rate Order
written comments at a public comment repayments, payments to states, and
No. WAPA–178
forum that will be held on August 18, visitor services expenses. The total costs
AGENCY: Western Area Power 2017, at 10:00 a.m. MST in Phoenix, are offset by the projected revenue from
Administration, DOE. Arizona. WAPA will accept written water sales, visitor services, ancillary
ACTION: Notice of proposed rate-setting
comments any time during the services, and late fees. The annual
formulas for electric service and consultation and comment period. revenue requirement is the base charge
adjustment of fiscal year 2018 base ADDRESSES: The public information for electric service divided equally
charge and rates. forum and public comment forum will between capacity and energy. The
be held at WAPA’s Desert Southwest annual composite rate is the base charge
SUMMARY: Western Area Power Customer Service Regional Office divided by annual energy sales.
Administration (WAPA) is proposing to located at 615 South 43rd Avenue, The proposed Rate Schedule BCP–F10
update the rate-setting formulas for Phoenix, Arizona 85009. Send written requires updated financial and
electric service for the Boulder Canyon comments to Mr. Ronald E. Moulton, hydrology data to calculate the annual
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Project (BCP) under proposed Rate Regional Manager, Desert Southwest base charge and rates. The proposed
Schedule BCP–F10, and adjust the Customer Service Region, Western Area base charge for FY 2018 is $85,094,786
annual calculation for the fiscal year Power Administration, P.O. Box 6457, and the proposed composite rate is
(FY) 2018 base charge and rates. The Phoenix, Arizona 85005–6457, email 24.39 mills/kilowatt-hour. The
expiration of the current base charge moulton@wapa.gov. WAPA will post following table compares the existing
and rates on September 30, 2017, and information about the rate process, as and proposed base charge and
beginning of the new 50-year marketing well as comments received via letter composite rate:
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![27814 Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices
COMPARISON OF EXISTING AND PROPOSED BASE CHARGE AND COMPOSITE RATE
Existing Proposed
October 1, 2016 October 1, 2017 Percent
through through change
September 30, 2017 September 30, 2018
Base Charge ($) .......................................................................................... 69,662,289 85,094,786 22
Composite Rate (mills/kWh) ........................................................................ 19.63 24.39 24
The proposed FY 2018 base charge authority to develop power and ENVIRONMENTAL PROTECTION
includes a one-time $15 million transmission rates to WAPA’s AGENCY
working capital fund primarily for Administrator; (2) the authority to
[EPA–R05–RCRA–2017–0228; FRL–9963–
Reclamation, which is an increase of confirm, approve, and place such rates 63–Region 5]
approximately 22 percent compared to into effect on an interim basis to the
the FY 2017 base charge. Under the BCP Deputy Secretary of Energy; and (3) the Illinois: Notice of Determination of
Electric Service Contracts and Amended authority to confirm, approve, and place Adequacy of Illinois’ Research,
and Restated Implementation into effect on a final basis, to remand, Development and Demonstration
Agreements, Reclamation worked or to disapprove such rates to the (RD&D) Permit Provisions for
collaboratively with BCP contractors to Federal Energy Regulatory Commission. Municipal Solid Waste Landfills
establish the $15 million working (MSWLF)
Availability of Information
capital fund for the new marketing
period, to be collected in the FY 2018 All brochures, studies, comments, AGENCY: Environmental Protection
base charge. The FY 2019 base charge is letters, memorandums, or other Agency (EPA).
expected to decrease by $15 million documents WAPA initiates or uses to ACTION: Notice.
after the collection of working capital in develop the proposed rate-setting
formulas and the base charge and rates SUMMARY: On May 10, 2016, the
FY 2018 (subject to Reclamation’s
will be available for inspection and Environmental Protection Agency (EPA)
annual working capital evaluation). The
copying at the Desert Southwest issued a revision to the regulations
working capital fund accounts for nearly
Customer Service Regional Office, allowing RD&D permits to increase the
all of the increase to the base charge.
Western Area Power Administration, number of permit renewals allowed to
Increases in annual operation and
located at 615 South 43rd Avenue, six, for a total permit term of up to 21
maintenance and replacement costs, and
Phoenix, Arizona 85009. Many of these years.
decreases in debt service, uprating On March 21, 2017, the Illinois
credits, non-power revenue, and documents and supporting information
are available on WAPA’s Web site at: Environmental Protection Agency
carryover revenue account for the (IEPA) submitted a notification to EPA
remaining increase to the base charge. http://www.wapa.gov/regions/DSW/
Rates/Pages/boulder-canyon-rates.aspx. Region 5 seeking Federal approval of its
The proposed FY 2018 composite rate
revised RD&D requirements per the
represents an increase of approximately Ratemaking Procedure Requirements procedures. Subject to public review
24 percent compared to the FY 2017
Environmental Compliance and comment, this action approves
composite rate. The increase in the
Illinois’ revised RD&D permit
proposed base charge accounts for the In compliance with the National requirements.
composite rate increase. Environmental Policy Act (NEPA) of
This proposal, to be effective October DATES: This determination of adequacy
1969, 42 U.S.C. 4321–4347; the Council
1, 2017, is preliminary and is subject to of the RD&D permit program for Illinois
on Environmental Quality Regulations
change upon publication of the final will become effective August 18, 2017
for implementing NEPA (40 CFR parts
base charge and rates. unless adverse comments are received.
1500–1508); and DOE NEPA
If adverse comments are received, EPA
Legal Authority Implementing Procedures and
will review those comments and
Guidelines (10 CFR part 1021), WAPA
In establishing rate-setting formulas publish another Federal Register
is in the process of determining whether
for electric service and the base charge document responding to those
an environmental assessment or an
and rates for BCP, WAPA will follow comments and either affirm or revise
environmental impact statement should
the formal public process set forth in 10 EPA’s initial decision. Comments on
be prepared or if this action can be
CFR parts 903 and 904, and review all this determination of adequacy must be
categorically excluded from those
comments it receives on the proposed received on or before July 19, 2017.
requirements.
base charge and rates before taking ADDRESSES: Submit your comments,
action. Determination Under Executive Order identified by Docket ID No. EPA–R05–
WAPA is proposing this action under 12866 RCRA–2017–0228, to the Federal
the Department of Energy (DOE) WAPA has an exemption from eRulemaking Portal: https://
Organization Act (42 U.S.C. 7101–7352); centralized regulatory review under www.regulations.gov. Follow the online
asabaliauskas on DSKBBXCHB2PROD with NOTICES
the Reclamation Act of 1902 (ch. 1093, Executive Order 12866; accordingly, no instructions for submitting comments.
32 Stat. 388), as amended and clearance of this notice by the Office of Once submitted, comments cannot be
supplemented by subsequent Management and Budget is required. edited or withdrawn. The EPA may
enactments; and other acts that publish any comment received to its
specifically apply to the project Dated: May 4, 2017. public docket. Do not submit
involved. Mark A. Gabriel, electronically any information you
By Delegation Order No. 00–037.00B Administrator. consider to be Confidential Business
effective November 19, 2016, the [FR Doc. 2017–12700 Filed 6–16–17; 8:45 am] Information (CBI) or other information
Secretary of Energy delegated: (1) The BILLING CODE 6450–01–P whose disclosure is restricted by statute.
VerDate Sep<11>2014 17:09 Jun 16, 2017 Jkt 241001 PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 E:\FR\FM\19JNN1.SGM 19JNN1](https://thefederalregister.org/doc/82_FR_27929/page/2.svg)
Document Created: 2017-06-17 01:48:06
Document Modified: 2017-06-17 01:48:06
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice of proposed rate-setting formulas for electric service and adjustment of fiscal year 2018 base charge and rates. | |
| Dates | The consultation and comment period begins today and will end September 18, 2017. WAPA will present a detailed explanation of the proposed rate-setting formulas and the FY 2018 base charge and rates at a public information forum that will be held on July 19, 2017, at 10:00 a.m. Mountain Standard Time (MST) in Phoenix, Arizona. WAPA will accept oral and written comments at a public comment forum that will be held on August 18, 2017, at 10:00 a.m. MST in Phoenix, Arizona. WAPA will accept written comments any time during the consultation and comment period. | |
| Contact | Mr. Scott Lund, Rates Manager, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, Arizona 85005-6457, (602) 605-2442, or email [email protected] | |
| FR Citation | 82 FR 27813 |
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