82_FR_30984 82 FR 30858 - Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-180

82 FR 30858 - Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-180

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 82, Issue 126 (July 3, 2017)

Page Range30858-30861
FR Document2017-13981

Western Area Power Administration (WAPA) is proposing revised rates for Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP-- ED) firm power and firm peaking power service, and a new formula rate for sales of surplus products. Current firm power and firm peaking power service rates, under Rate Schedules P-SED-F12 and P-SED-FP12, are in effect through December 31, 2019. WAPA is proposing to lower the overall charges for firm power and firm peaking power service by 19 percent, as a result of rebalancing the charge components in formula-based Rate Schedules P-SED-F12 and P- SED-FP12 by reducing the drought adder component, increasing the base component, and removing the voltage discount. The proposed rates will provide sufficient revenue to pay all annual costs, including interest expense, and repay investments within the allowable periods. In addition, WAPA is proposing a new formula rate for the sale of surplus products under Rate Schedule P-SED-M1. This new rate schedule will allow for the sale of generation and generation- related products in excess of WAPA's P-SMBP--ED firm power obligations at market rates. WAPA will prepare a brochure providing detailed information on these proposed rates prior to the public information forums listed below. This brochure will be posted to WAPA's Web site at https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate- adjustment.aspx. If approved, the proposed rates, under Rate Schedules P-SED-F13, P-SED-FP13, and P-SED-M1 would become effective on January 1, 2018, and would remain in effect through December 31, 2022, or until superseded. Publication of this Federal Register notice begins the formal process for the proposed rate adjustment and new sale of surplus products formula rate.

Federal Register, Volume 82 Issue 126 (Monday, July 3, 2017)
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)]
[Notices]
[Pages 30858-30861]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13981]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pick-Sloan Missouri Basin Program--Eastern Division-Rate Order 
No. WAPA-180

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Firm Power Service and Sale of Surplus 
Products Rates.

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

SUMMARY: Western Area Power Administration (WAPA) is proposing revised 
rates for Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--
ED) firm power and firm peaking power service, and a new formula rate 
for sales of surplus products. Current firm power and firm peaking 
power service rates, under Rate Schedules P-SED-F12 and P-SED-FP12, are 
in effect through December 31, 2019.
    WAPA is proposing to lower the overall charges for firm power and 
firm peaking power service by 19 percent, as a result of rebalancing 
the charge components in formula-based Rate Schedules P-SED-F12 and P-
SED-FP12 by reducing the drought adder component, increasing the base 
component, and removing the voltage discount. The proposed rates will 
provide sufficient revenue to pay all annual costs, including interest 
expense, and repay investments within the allowable periods. In 
addition, WAPA is proposing a new formula rate for the sale of surplus 
products under Rate Schedule P-SED-M1. This new

[[Page 30859]]

rate schedule will allow for the sale of generation and generation-
related products in excess of WAPA's P-SMBP--ED firm power obligations 
at market rates. WAPA will prepare a brochure providing detailed 
information on these proposed rates prior to the public information 
forums listed below. This brochure will be posted to WAPA's Web site at 
https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.aspx. If approved, the proposed rates, under Rate Schedules 
P-SED-F13, P-SED-FP13, and P-SED-M1 would become effective on January 
1, 2018, and would remain in effect through December 31, 2022, or until 
superseded. Publication of this Federal Register notice begins the 
formal process for the proposed rate adjustment and new sale of surplus 
products formula rate.

DATES: The consultation and comment period will begin July 3, 2017 and 
end October 2, 2017. WAPA will present a detailed explanation of the 
proposed rates and other modifications at public information forums 
being held on the following dates and times:
    1. August 22, 2017, 9:00 a.m. to 10:30 a.m. MDT, Denver, Colorado.
    2. August 23, 2017, 9:00 a.m. to 10:30 a.m. CDT, Sioux Falls, South 
Dakota.
    WAPA will accept oral and written comments at public comment forums 
on the following dates and times:
    1. August 22, 2017, 11:00 a.m. to no later than 12 noon MDT, 
Denver, Colorado.
    2. August 23, 2017, 11:00 a.m. to no later than 12 noon CDT, Sioux 
Falls, South Dakota.
    WAPA will accept written comments anytime during the consultation 
and comment period.

ADDRESSES: Written comments and/or requests to be informed of Federal 
Energy Regulatory Commission (FERC) actions concerning the proposed 
rates submitted by WAPA to FERC for approval should be sent to: Mr. 
Robert J. Harris, Regional Manager, Upper Great Plains Region, Western 
Area Power Administration, 2900 4th Avenue North, 6th Floor, Billings, 
MT 59101-1266, or email [email protected]. Information about this 
rate process is posted on WAPA's Web site at https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.aspx. WAPA will post 
official comments received via letter and email to its Web site after 
the close of the comment period. WAPA must receive written comments by 
the end of the consultation and comment period to ensure they are 
considered in WAPA's decision process.
    Public information and comment forum locations are:
    1. Denver--Embassy Suites, 7001 Yampa Street, Denver, Colorado.
    2. Sioux Falls--Holiday Inn, 100 West 8th Street, Sioux Falls, 
South Dakota.

FOR FURTHER INFORMATION CONTACT: Mrs. Linda Cady-Hoffman, Rates 
Manager, Upper Great Plains Region, Western Area Power Administration, 
2900 4th Avenue North, 6th Floor, Billings, MT 59101-1266, telephone: 
(406) 255-2920, email: [email protected]@wapa.gov.

SUPPLEMENTARY INFORMATION: 

Firm Electric Service

    On December 2, 2014, the Deputy Secretary of Energy approved, on an 
interim basis, Rate Order No. WAPA-166 and Rate Schedules P-SED-F12 and 
P-SED-FP12 for the period beginning January 1, 2015, and ending 
December 31, 2019 (79 FR 72670-72677 (Dec. 8, 2014)).\1\ These Rate 
Schedules are formula-based, providing for downward adjustments to the 
drought adder component.\2\ On January 1, 2017, the drought adder 
component of the P-SMBP--ED effective Rate Schedules was adjusted 
downward, recognizing repayment of drought costs included in the 
drought adder component of the approved formula rates. The formula-
based drought adder component needs to be adjusted down to zero in 2018 
and such adjustment can be made using the approved annual drought adder 
adjustment process. However, since any adjustment to the base component 
must be done through a public rate process, WAPA now proposes to adjust 
both the base and drought adder components through a rate adjustment 
process. WAPA proposes to adjust the formula-based drought adder 
component of firm power rate schedules down to zero in 2018, while the 
base component will be adjusted upward to address present costs. The P-
SMBP Fiscal Year 2016 Power Repayment Study (PRS) revenue requirement 
and current water conditions in the P-SMBP are the determining factors 
for this proposed rate adjustment.
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    \1\ FERC confirmed and approved Rate Order WAPA-166 on a final 
basis on March 18, 2015, in Docket No. EF15-3-000. See United States 
Department of Energy, Western Area Power Administration (Pick-Sloan 
Missouri Basin Program--Eastern Division), 150 FERC ] 62,170.
    \2\ The drought adder component is a formula-based revenue 
requirement that includes future purchase power above timing 
purchases, previous purchase power drought deficits, and interest on 
the purchase power drought deficits. See 72 FR 64067 (November 14, 
2007). The drought adder was added as a component to the energy and 
capacity rates in Rate Order No. WAPA-135, which was approved by the 
Deputy Secretary on an interim basis on November 14, 2007 (72 FR 
64067). FERC confirmed and approved Rate Order WAPA-135 on a final 
basis on April 14, 2008, in Docket No. EF08-5031. See United States 
Department of Energy, Western Area Power Administration (Pick-Sloan 
Missouri Basin Program-Eastern Division), 123 FERC ] 62,048. Western 
reviews the drought adder each September to determine if drought 
costs differ from those projected in the Power Repayment Study and 
whether an adjustment to the drought adder is necessary. See 72 FR 
at 64071. The drought adder may be adjusted downward using the 
approved annual drought adder adjustment process, whereas an 
incremental upward adjustment to the drought adder component greater 
than the equivalent of 2 mills/kWh requires a public rate process. 
See 72 FR at 64071.
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    WAPA's Upper Great Plains Region (UGP) is also proposing the 
removal of the 5 percent voltage discount currently in the existing P-
SMBP--ED firm power rate schedule P-SED-F12 and removing it from the 
firm power revenue requirement determined in the FY 2016 PRS. The 
voltage discount was originally created by the Bureau of Reclamation 
(BOR) in its firm power rate schedules prior to the creation of WAPA. 
This discount was to compensate certain preference customers for 
providing ``transmission'' facilities otherwise provided by the BOR and 
later WAPA. The effect of providing this discount to certain customers 
is to raise the firm power rates to all customers to recover the 
dollars lost by providing the discount. By removing the voltage 
discount, the overall P-SMBP--ED firm power rate will be lower and all 
firm power customers will pay firm power rates on an equivalent basis. 
The original intent of the voltage discount has been met in its nearly 
70 years of application. The voltage discount has been difficult to 
administer equitably among customers. It takes considerable staff time 
to administer, impedes simplifying power and energy billing, and adds 
complexity to solely Upper Great Plains (UGP) power billing. Removing 
the voltage discount is revenue neutral for WAPA.
    With the removal of the voltage discount taken into account, the 
proposed total annual revenue requirement for P-SMBP--ED is $230.1 
million for firm power and firm peaking power service. The existing P-
SMBP--ED charges in the current rate schedules for firm power and firm 
peaking power are being reduced, as indicated in Table 1:

[[Page 30860]]



                     Table 1--Summary of Current and Proposed Revenue Requirement and Rates
----------------------------------------------------------------------------------------------------------------
                                                             Current under P-
                                                             SED-F12/ P-SED-   Proposed under P-
                                                                FP12 with       SED-F13/ P-SED-
                    Firm power service                       modified drought      FP13 as of     Percent change
                                                             adder reduction    January 1, 2018
                                                             as of January 1,
-------------------------------------------------------------------2017-----------------------------------------
P-SMBP--ED Revenue Requirement (millions $)...............             $282.7             $230.1             -19
P-SMBP--ED Composite Rate (mills/kWh).....................              28.25              24.00             -15
Firm Capacity ($/kW-month)................................              $6.50              $5.25             -19
Firm Energy (mills/kWh)...................................              16.18              13.27             -18
Firm Peaking Capacity ($/kW-month)........................              $5.85              $4.75             -19
Firm Peaking Energy (mills/kWh) 1.........................              16.18              13.27             -18
----------------------------------------------------------------------------------------------------------------
1 Firm Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not
  returned.

    Under the current rate methodology, rates for P-SMBP--ED firm power 
and firm peaking power service are designed to recover an annual 
revenue requirement that includes investment repayment, interest, 
purchase power, operation and maintenance, and other expenses within 
the allowable period. The annual revenue requirement continues to be 
allocated equally between capacity and energy.
    WAPA is proposing to place Rate Schedules P-SED-F13 and P-SED-FP13 
into effect for the 5-year period beginning January 1, 2018, through 
December 31, 2022. The proposed adjustment updates the base component 
with present costs and reduces the drought adder component to zero, as 
the drought-related debts are projected to be fully repaid in 2018. The 
net effect of these adjustments results in an overall decrease to the 
P-SMBP--ED rates.
    Base component costs for the P-SMBP--ED have increased primarily 
due to inflationary annual and capital cost increases associated with 
incorporating three new out-year projections into the 5-year cost 
evaluation period of the current rate-setting PRS. Concurrently, WAPA 
will be reducing the P SMBP--ED drought adder components of the firm 
power rates to zero recognizing the full repayment of drought costs in 
2018. The anticipated net effect of these planned rate actions is the 
firm power rate charges for the P-SMBP--ED will be decreasing overall 
from the current rate charges. A comparison of the current and proposed 
components is listed in Table 2.

                                                    Table 2--Summary of P-SMBP--ED Charge Components
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Current charges under rate schedules P-  Proposed charges under rate schedules P-
                                                           SED-F12 and P-SED-FP12 with modified     SED-F13 and P-SED-FP13 as of January 1,
                                                         drought adder reduction as of January 1,                    2018
                                                                           2017                   ------------------------------------------    Change
                                                        ------------------------------------------                                            (percent)
                                                             Base      Drought adder     Total         Base      Drought adder     Total
                                                          component      component       charge     component      component       charge
--------------------------------------------------------------------------------------------------------------------------------------------------------
Firm Capacity ($/kWmonth)..............................        $4.90           $1.60        $6.50        $5.25           $0.00        $5.25          -19
Firm Energy (mills/kWh)................................        12.33            3.85        16.18        13.27            0.00        13.27          -18
Firm Peaking Capacity ($/kWmonth)......................        $4.45           $1.40        $5.85        $4.75           $0.00        $4.75          -19
Firm Peaking Energy (mills/kWh) 1......................        12.33            3.85        16.18        13.27            0.00        13.27          -18
--------------------------------------------------------------------------------------------------------------------------------------------------------
1 Firm peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.

    As a part of the current and proposed rate schedules, WAPA provides 
for a formula-based adjustment of the drought adder component of up to 
2 mills/kWh. The 2 mills/kWh cap is intended to place a limit on the 
amount the drought adder component can be adjusted relative to 
associated drought costs to recover costs attributable to the drought 
adder formula rate for any one-year cycle. Continuing to identify the 
firm power service revenue requirement using base and drought adder 
components will assist WAPA in the presentation of future impacts of 
droughts, demonstrate repayment of drought-related costs in the PRS, 
and allow WAPA to be more responsive to changes caused by drought-
related expenses. WAPA will continue to charge and bill its customers 
firm power and firm peaking power service rates for energy and 
capacity, which are the sum of the base and drought adder components.

Sale of Surplus Products

    In addition to the firm power and firm peaking power rate 
schedules, WAPA is proposing a new formula-based rate schedule, P-SED-
M1, applicable to the sale of surplus energy and capacity products. The 
schedule includes reserves, regulation, frequency response, and energy. 
If WAPA UGP surplus products are available, the charge will be 
determined based on market rates, plus administrative costs. The 
customer will be responsible for acquiring transmission service 
necessary to deliver the product(s) for which a separate charge may be 
incurred. WAPA is proposing to place Rate Schedule P-SED-M1 into effect 
for the 5-year period beginning January 1, 2018, through December 31, 
2022.

Legal Authority

    The proposed rates constitute a major rate adjustment, as defined 
by 10 CFR 903.2(e); therefore, WAPA will hold the public information 
and public comment forums for this rate adjustment, pursuant to 10 CFR 
903.15 and 903.16. WAPA will review all timely public comments and make 
amendments or adjustments to the proposals as appropriate. Proposed 
rates will be forwarded to the Deputy Secretary of Energy for approval 
on an interim basis.
    WAPA is establishing firm power service rates, firm peaking power 
service rates, and sale of surplus

[[Page 30861]]

product formula rates for P-SMBP-ED under the Department of Energy 
(DOE) Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902 
(ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent 
enactments, particularly section 9(c) of the Reclamation Project Act of 
1939 (43 U.S.C. 485h(c)) and section 5 of the Flood Control Act of 1944 
(16 U.S.C. 825s); and other acts specifically applicable to the 
projects involved.
    By Delegation Order No. 00-037.00B, 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 FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents WAPA initiates or uses to develop the proposed rates will be 
available for inspection and copying at the Upper Great Plains Regional 
Office, located at 2900 4th Avenue North, 6th Floor, Billings, Montana. 
These documents and supporting information will be posted on WAPA's Web 
site as they become available under the ``2018 Firm Rate Adjustment'' 
section located at https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.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: June 27, 2017.
Mark A. Gabriel,
Administrator.
[FR Doc. 2017-13981 Filed 6-30-17; 8:45 am]
 BILLING CODE 6450-01-P



                                                30858                           Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices

                                                                                               TABLE 3—SUMMARY OF LAP CHARGE COMPONENTS
                                                                                  Existing charges under rate schedule L–F10 with                Proposed charges under rate schedule L–F11 as
                                                                                   adjusted drought adder as of January 1, 2017                               of January 1, 2018                       Percent
                                                                                                                                                                                                       change
                                                                                        Base           Drought adder                                Base          Drought adder
                                                                                                                           Total charge                                               Total charge
                                                                                      component         component                                 component        component

                                                Firm Capacity (/kWmonth)                     $3.92               $0.87               $4.79               $4.12                   $0          $4.12             ¥14
                                                Firm Energy (mills/kWh) ....                 14.95                3.33               18.28               15.72                    0          15.72             ¥14



                                                Sale of Surplus Products                                the Reclamation Project Act of 1939 (43                  Determination Under Executive Order
                                                   On August 12, 2016, the Deputy                       U.S.C. 485h(c)) and section 5 of the                     12866
                                                Secretary of Energy approved, on an                     Flood Control Act of 1944 (16 U.S.C.                       WAPA has an exemption from
                                                interim basis, Rate Schedule L–M1                       825s); and other acts specifically                       centralized regulatory review under
                                                under Rate Order No. WAPA–174, for                      applicable to the projects involved.                     Executive Order 12866; accordingly, no
                                                the period beginning October 1, 2016,                      By Delegation Order No. 00–037.00B,                   clearance of this notice by the Office of
                                                and ending September 30, 2021 (81 FR                    effective November 19, 2016, the                         Management and Budget is required.
                                                56632–56652 (August 22, 2016)).3 This                   Secretary of Energy delegated: (1) The                    Dated: June 27, 2017.
                                                Rate Schedule is formula-based,                         authority to develop power and                           Mark A. Gabriel,
                                                providing for LAP Marketing to sell LAP                 transmission rates to WAPA’s                             Administrator.
                                                surplus energy and capacity products. If                Administrator; (2) the authority to
                                                LAP surplus products are available, as                                                                           [FR Doc. 2017–13980 Filed 6–30–17; 8:45 am]
                                                                                                        confirm, approve, and place such rates
                                                specified in the rate schedule, the                     into effect on an interim basis to the                   BILLING CODE 6450–01–P

                                                charge will be based on market rates                    Deputy Secretary of Energy; and (3) the
                                                plus administrative costs. The customer                 authority to confirm, approve, and place
                                                will be responsible for acquiring                                                                                DEPARTMENT OF ENERGY
                                                                                                        into effect on a final basis, to remand,
                                                transmission service necessary to                       or to disapprove such rates to FERC.                     Western Area Power Administration
                                                deliver the product(s) for which a                      Existing DOE procedures for public
                                                separate charge may be incurred. The                    participation in power rate adjustments                  Pick-Sloan Missouri Basin Program—
                                                rate schedule currently allows for the                  (10 CFR part 903) were published on                      Eastern Division-Rate Order No.
                                                sale of reserves, regulation, and                       September 18, 1985 (50 FR 37835).                        WAPA–180
                                                frequency response. WAPA is proposing
                                                to add ‘‘energy’’ as a fourth surplus                   Availability of Information                              AGENCY:  Western Area Power
                                                product offered under this rate                                                                                  Administration, DOE.
                                                schedule. WAPA is proposing to place                       All brochures, studies, comments,                     ACTION: Notice of Proposed Firm Power
                                                Rate Schedule L–M2 into effect for the                  letters, memorandums, or other                           Service and Sale of Surplus Products
                                                5-year period beginning January 1, 2018,                documents WAPA initiates or uses to                      Rates.
                                                through December 31, 2022.                              develop the proposed rates will be
                                                                                                        available for inspection and copying at                  SUMMARY:    Western Area Power
                                                Legal Authority                                         the Rocky Mountain Regional Office                       Administration (WAPA) is proposing
                                                  The proposed rates constitute a major                 located at 5555 East Crossroads                          revised rates for Pick-Sloan Missouri
                                                rate adjustment, as defined by 10 CFR                   Boulevard, Loveland, Colorado. These                     Basin Program—Eastern Division (P–
                                                903.2(e); therefore, WAPA will hold                     documents and supporting information                     SMBP—ED) firm power and firm
                                                public information and public comment                   will be posted on WAPA’s Web site as                     peaking power service, and a new
                                                forums for this rate adjustment,                        they become available under the ‘‘2018                   formula rate for sales of surplus
                                                pursuant to 10 CFR 903.15 and 903.16.                   Rate Adjustment—Firm Power’’ section                     products. Current firm power and firm
                                                WAPA will review all timely public                      located at: https://www.wapa.gov/                        peaking power service rates, under Rate
                                                comments and make amendments or                         regions/RM/rates/Pages/2018-Rate-                        Schedules P–SED–F12 and P–SED–
                                                adjustments to the proposals as                         Adjustment---Firm-Power.aspx.                            FP12, are in effect through December 31,
                                                appropriate. Proposed rates will be                                                                              2019.
                                                                                                        Ratemaking Procedure Requirements                           WAPA is proposing to lower the
                                                forwarded to the Deputy Secretary of
                                                Energy for approval on an interim basis.                Environmental Compliance                                 overall charges for firm power and firm
                                                  WAPA is establishing firm electric                                                                             peaking power service by 19 percent, as
                                                service rates and sale of surplus                          In compliance with the National                       a result of rebalancing the charge
                                                products formula rates under the                        Environmental Policy Act (NEPA) of                       components in formula-based Rate
                                                Department of Energy (DOE)                              1969, 42 U.S.C. 4321–4347; the Council                   Schedules P–SED–F12 and P–SED–FP12
                                                Organization Act (42 U.S.C. 7152); the                  on Environmental Quality Regulations                     by reducing the drought adder
                                                Reclamation Act of 1902 (ch. 1093, 32                   for implementing NEPA (40 CFR parts                      component, increasing the base
                                                Stat. 388), as amended and                              1500–1508); and DOE NEPA                                 component, and removing the voltage
                                                                                                        Implementing Procedures and                              discount. The proposed rates will
sradovich on DSK3GMQ082PROD with NOTICES




                                                supplemented by subsequent
                                                enactments, particularly section 9(c) of                Guidelines (10 CFR part 1021), WAPA                      provide sufficient revenue to pay all
                                                                                                        is in the process of determining whether                 annual costs, including interest
                                                  3 FERC confirmed and approved Rate Order              an environmental assessment or an                        expense, and repay investments within
                                                WAPA–174 on a final basis on March 9, 2017, in          environmental impact statement should                    the allowable periods. In addition,
                                                Docket Nos. EF16–5–000 and EF16–5–001. See
                                                United States Department of Energy, Western Area
                                                                                                        be prepared or if this action can be                     WAPA is proposing a new formula rate
                                                Power Administration (Loveland Area Projects), 158      categorically excluded from those                        for the sale of surplus products under
                                                FERC ¶ 62,181.                                          requirements.                                            Rate Schedule P–SED–M1. This new


                                           VerDate Sep<11>2014   17:53 Jun 30, 2017   Jkt 241001   PO 00000   Frm 00043   Fmt 4703   Sfmt 4703    E:\FR\FM\03JYN1.SGM   03JYN1


                                                                                Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices                                                    30859

                                                rate schedule will allow for the sale of                Information about this rate process is                 WAPA proposes to adjust the formula-
                                                generation and generation-related                       posted on WAPA’s Web site at https://                  based drought adder component of firm
                                                products in excess of WAPA’s P–                         www.wapa.gov/regions/UGP/rates/                        power rate schedules down to zero in
                                                SMBP—ED firm power obligations at                       Pages/2018-firm-rate-adjustment.aspx.                  2018, while the base component will be
                                                market rates. WAPA will prepare a                       WAPA will post official comments                       adjusted upward to address present
                                                brochure providing detailed information                 received via letter and email to its Web               costs. The P–SMBP Fiscal Year 2016
                                                on these proposed rates prior to the                    site after the close of the comment                    Power Repayment Study (PRS) revenue
                                                public information forums listed below.                 period. WAPA must receive written                      requirement and current water
                                                This brochure will be posted to WAPA’s                  comments by the end of the                             conditions in the P–SMBP are the
                                                Web site at https://www.wapa.gov/                       consultation and comment period to                     determining factors for this proposed
                                                regions/UGP/rates/Pages/2018-firm-                      ensure they are considered in WAPA’s                   rate adjustment.
                                                rate-adjustment.aspx. If approved, the                  decision process.                                         WAPA’s Upper Great Plains Region
                                                proposed rates, under Rate Schedules                       Public information and comment                      (UGP) is also proposing the removal of
                                                P–SED–F13, P–SED–FP13, and P–SED–                       forum locations are:                                   the 5 percent voltage discount currently
                                                M1 would become effective on January                       1. Denver—Embassy Suites, 7001                      in the existing P–SMBP—ED firm power
                                                1, 2018, and would remain in effect                     Yampa Street, Denver, Colorado.                        rate schedule P–SED–F12 and removing
                                                through December 31, 2022, or until                        2. Sioux Falls—Holiday Inn, 100 West                it from the firm power revenue
                                                superseded. Publication of this Federal                 8th Street, Sioux Falls, South Dakota.                 requirement determined in the FY 2016
                                                Register notice begins the formal                       FOR FURTHER INFORMATION CONTACT: Mrs.                  PRS. The voltage discount was
                                                process for the proposed rate adjustment                Linda Cady-Hoffman, Rates Manager,                     originally created by the Bureau of
                                                and new sale of surplus products                        Upper Great Plains Region, Western                     Reclamation (BOR) in its firm power
                                                formula rate.                                           Area Power Administration, 2900 4th                    rate schedules prior to the creation of
                                                DATES: The consultation and comment                     Avenue North, 6th Floor, Billings, MT                  WAPA. This discount was to
                                                period will begin July 3, 2017 and end                  59101–1266, telephone: (406) 255–2920,                 compensate certain preference
                                                October 2, 2017. WAPA will present a                    email: cady@wapa.govorUGPFirmRate@                     customers for providing ‘‘transmission’’
                                                detailed explanation of the proposed                    wapa.gov.                                              facilities otherwise provided by the BOR
                                                rates and other modifications at public                 SUPPLEMENTARY INFORMATION:                             and later WAPA. The effect of providing
                                                information forums being held on the                                                                           this discount to certain customers is to
                                                following dates and times:                              Firm Electric Service                                  raise the firm power rates to all
                                                   1. August 22, 2017, 9:00 a.m. to 10:30                 On December 2, 2014, the Deputy                      customers to recover the dollars lost by
                                                a.m. MDT, Denver, Colorado.                             Secretary of Energy approved, on an                    providing the discount. By removing the
                                                   2. August 23, 2017, 9:00 a.m. to 10:30               interim basis, Rate Order No. WAPA–                    voltage discount, the overall P–SMBP—
                                                a.m. CDT, Sioux Falls, South Dakota.                    166 and Rate Schedules P–SED–F12 and                   ED firm power rate will be lower and all
                                                   WAPA will accept oral and written                    P–SED–FP12 for the period beginning                    firm power customers will pay firm
                                                comments at public comment forums on                    January 1, 2015, and ending December                   power rates on an equivalent basis. The
                                                the following dates and times:                          31, 2019 (79 FR 72670–72677 (Dec. 8,                   original intent of the voltage discount
                                                   1. August 22, 2017, 11:00 a.m. to no                 2014)).1 These Rate Schedules are                      has been met in its nearly 70 years of
                                                later than 12 noon MDT, Denver,                         formula-based, providing for downward                  application. The voltage discount has
                                                Colorado.                                               adjustments to the drought adder                       been difficult to administer equitably
                                                   2. August 23, 2017, 11:00 a.m. to no                 component.2 On January 1, 2017, the                    among customers. It takes considerable
                                                later than 12 noon CDT, Sioux Falls,                    drought adder component of the P–                      staff time to administer, impedes
                                                South Dakota.                                           SMBP—ED effective Rate Schedules was                   simplifying power and energy billing,
                                                   WAPA will accept written comments                    adjusted downward, recognizing                         and adds complexity to solely Upper
                                                anytime during the consultation and                     repayment of drought costs included in                 Great Plains (UGP) power billing.
                                                comment period.                                         the drought adder component of the                     Removing the voltage discount is
                                                ADDRESSES: Written comments and/or                      approved formula rates. The formula-                   revenue neutral for WAPA.
                                                requests to be informed of Federal                      based drought adder component needs                       With the removal of the voltage
                                                Energy Regulatory Commission (FERC)                     to be adjusted down to zero in 2018 and                discount taken into account, the
                                                actions concerning the proposed rates                   such adjustment can be made using the                  proposed total annual revenue
                                                submitted by WAPA to FERC for                           approved annual drought adder                          requirement for P–SMBP—ED is $230.1
                                                approval should be sent to: Mr. Robert                  adjustment process. However, since any                 million for firm power and firm peaking
                                                J. Harris, Regional Manager, Upper Great                adjustment to the base component must                  power service. The existing P–SMBP—
                                                Plains Region, Western Area Power                       be done through a public rate process,                 ED charges in the current rate schedules
                                                Administration, 2900 4th Avenue North,                  WAPA now proposes to adjust both the                   for firm power and firm peaking power
                                                6th Floor, Billings, MT 59101–1266, or                  base and drought adder components                      are being reduced, as indicated in Table
                                                email ugpfirmrate@wapa.gov.                             through a rate adjustment process.                     1:



                                                  1 FERC confirmed and approved Rate Order              64067 (November 14, 2007). The drought adder was       each September to determine if drought costs differ
                                                WAPA–166 on a final basis on March 18, 2015, in         added as a component to the energy and capacity
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                                                                                                                                                               from those projected in the Power Repayment Study
                                                Docket No. EF15–3–000. See United States                rates in Rate Order No. WAPA–135, which was            and whether an adjustment to the drought adder is
                                                Department of Energy, Western Area Power                approved by the Deputy Secretary on an interim         necessary. See 72 FR at 64071. The drought adder
                                                Administration (Pick-Sloan Missouri Basin               basis on November 14, 2007 (72 FR 64067). FERC
                                                                                                                                                               may be adjusted downward using the approved
                                                Program—Eastern Division), 150 FERC ¶ 62,170.           confirmed and approved Rate Order WAPA–135 on
                                                  2 The drought adder component is a formula-           a final basis on April 14, 2008, in Docket No. EF08–   annual drought adder adjustment process, whereas
                                                based revenue requirement that includes future          5031. See United States Department of Energy,          an incremental upward adjustment to the drought
                                                purchase power above timing purchases, previous         Western Area Power Administration (Pick-Sloan          adder component greater than the equivalent of 2
                                                purchase power drought deficits, and interest on        Missouri Basin Program-Eastern Division), 123          mills/kWh requires a public rate process. See 72 FR
                                                the purchase power drought deficits. See 72 FR          FERC ¶ 62,048. Western reviews the drought adder       at 64071.



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                                                30860                                    Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices

                                                                            TABLE 1—SUMMARY OF CURRENT AND PROPOSED REVENUE REQUIREMENT AND RATES
                                                                                                                                                                                 Current under
                                                                                                                                                                                 P–SED–F12/         Proposed under
                                                                                                                                                                                 P–SED–FP12          P–SED–F13/            Percent
                                                                                               Firm power service                                                                with modified       P–SED–FP13            change
                                                                                                                                                                                 drought adder           as of
                                                                                                                                                                                reduction as of     January 1, 2018
                                                                                                                                                                               January 1, 2017

                                                P–SMBP—ED Revenue Requirement (millions $) ..........................................................                                      $282.7              $230.1            ¥19
                                                P–SMBP—ED Composite Rate (mills/kWh) ....................................................................                                   28.25               24.00            ¥15
                                                Firm Capacity ($/kW-month) ............................................................................................                     $6.50               $5.25            ¥19
                                                Firm Energy (mills/kWh) ..................................................................................................                  16.18               13.27            ¥18
                                                Firm Peaking Capacity ($/kW-month) .............................................................................                            $5.85               $4.75            ¥19
                                                Firm Peaking Energy (mills/kWh) 1 ..................................................................................                        16.18               13.27            ¥18
                                                   1 Firm   Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not returned.


                                                   Under the current rate methodology,                               beginning January 1, 2018, through                                   projections into the 5-year cost
                                                rates for P–SMBP—ED firm power and                                   December 31, 2022. The proposed                                      evaluation period of the current rate-
                                                firm peaking power service are designed                              adjustment updates the base component                                setting PRS. Concurrently, WAPA will
                                                to recover an annual revenue                                         with present costs and reduces the                                   be reducing the P SMBP—ED drought
                                                requirement that includes investment                                 drought adder component to zero, as the                              adder components of the firm power
                                                repayment, interest, purchase power,                                 drought-related debts are projected to be                            rates to zero recognizing the full
                                                operation and maintenance, and other                                 fully repaid in 2018. The net effect of                              repayment of drought costs in 2018. The
                                                expenses within the allowable period.                                these adjustments results in an overall                              anticipated net effect of these planned
                                                The annual revenue requirement                                       decrease to the P–SMBP—ED rates.                                     rate actions is the firm power rate
                                                continues to be allocated equally                                      Base component costs for the P–                                    charges for the P–SMBP—ED will be
                                                between capacity and energy.                                         SMBP—ED have increased primarily                                     decreasing overall from the current rate
                                                   WAPA is proposing to place Rate                                   due to inflationary annual and capital                               charges. A comparison of the current
                                                Schedules P–SED–F13 and P–SED–FP13                                   cost increases associated with                                       and proposed components is listed in
                                                into effect for the 5-year period                                    incorporating three new out-year                                     Table 2.

                                                                                                 TABLE 2—SUMMARY OF P–SMBP—ED CHARGE COMPONENTS
                                                                                                           Current charges under rate schedules                               Proposed charges under rate schedules
                                                                                                              P–SED–F12 and P–SED–FP12                                            P–SED–F13 and P–SED–FP13
                                                                                                           with modified drought adder reduction                                      as of January 1, 2018                 Change
                                                                                                                   as of January 1, 2017                                                                                   (percent)
                                                                                                                                                                               Base         Drought adder
                                                                                                          Base              Drought adder                                                                   Total charge
                                                                                                                                                    Total charge             component       component
                                                                                                        component            component

                                                Firm   Capacity ($/kWmonth) .............                       $4.90                    $1.60                $6.50               $5.25             $0.00         $5.25          ¥19
                                                Firm   Energy (mills/kWh) ..................                    12.33                     3.85                16.18               13.27              0.00         13.27          ¥18
                                                Firm   Peaking Capacity ($/kWmonth)                             $4.45                    $1.40                $5.85               $4.75             $0.00         $4.75          ¥19
                                                Firm   Peaking Energy (mills/kWh) 1 ..                          12.33                     3.85                16.18               13.27              0.00         13.27          ¥18
                                                   1 Firm   peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.


                                                   As a part of the current and proposed                             and firm peaking power service rates for                             is proposing to place Rate Schedule P–
                                                rate schedules, WAPA provides for a                                  energy and capacity, which are the sum                               SED–M1 into effect for the 5-year period
                                                formula-based adjustment of the                                      of the base and drought adder                                        beginning January 1, 2018, through
                                                drought adder component of up to 2                                   components.                                                          December 31, 2022.
                                                mills/kWh. The 2 mills/kWh cap is
                                                intended to place a limit on the amount                              Sale of Surplus Products                                             Legal Authority
                                                the drought adder component can be                                      In addition to the firm power and firm                              The proposed rates constitute a major
                                                adjusted relative to associated drought                              peaking power rate schedules, WAPA is                                rate adjustment, as defined by 10 CFR
                                                costs to recover costs attributable to the                           proposing a new formula-based rate                                   903.2(e); therefore, WAPA will hold the
                                                drought adder formula rate for any one-                              schedule, P–SED–M1, applicable to the                                public information and public comment
                                                year cycle. Continuing to identify the                               sale of surplus energy and capacity                                  forums for this rate adjustment,
                                                firm power service revenue requirement                               products. The schedule includes                                      pursuant to 10 CFR 903.15 and 903.16.
                                                using base and drought adder                                         reserves, regulation, frequency response,                            WAPA will review all timely public
                                                                                                                     and energy. If WAPA UGP surplus
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                                                components will assist WAPA in the                                                                                                        comments and make amendments or
                                                presentation of future impacts of                                    products are available, the charge will                              adjustments to the proposals as
                                                droughts, demonstrate repayment of                                   be determined based on market rates,                                 appropriate. Proposed rates will be
                                                drought-related costs in the PRS, and                                plus administrative costs. The customer                              forwarded to the Deputy Secretary of
                                                allow WAPA to be more responsive to                                  will be responsible for acquiring                                    Energy for approval on an interim basis.
                                                changes caused by drought-related                                    transmission service necessary to                                      WAPA is establishing firm power
                                                expenses. WAPA will continue to                                      deliver the product(s) for which a                                   service rates, firm peaking power
                                                charge and bill its customers firm power                             separate charge may be incurred. WAPA                                service rates, and sale of surplus


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                                                                                Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices                                             30861

                                                product formula rates for P–SMBP–ED                     clearance of this notice by the Office of              of Wetlands, Oceans, and Watersheds
                                                under the Department of Energy (DOE)                    Management and Budget is required.                     (4502T), Environmental Protection
                                                Organization Act (42 U.S.C. 7152); the                   Dated: June 27, 2017.                                 Agency, 1200 Pennsylvania Ave. NW.,
                                                Reclamation Act of 1902 (ch. 1093, 32                   Mark A. Gabriel,                                       Washington, DC 20460; telephone: 202–
                                                Stat. 388), as amended and                              Administrator.
                                                                                                                                                               566–1269; fax number: 202–566–1349;
                                                supplemented by subsequent                                                                                     email address: hurld.kathy@epa.gov.
                                                                                                        [FR Doc. 2017–13981 Filed 6–30–17; 8:45 am]
                                                enactments, particularly section 9(c) of                                                                       SUPPLEMENTARY INFORMATION:
                                                                                                        BILLING CODE 6450–01–P
                                                the Reclamation Project Act of 1939 (43                                                                        Supporting documents which explain in
                                                U.S.C. 485h(c)) and section 5 of the                                                                           detail the information that the EPA will
                                                Flood Control Act of 1944 (16 U.S.C.                                                                           be collecting are available in the public
                                                825s); and other acts specifically                      ENVIRONMENTAL PROTECTION
                                                                                                                                                               docket for this ICR. The docket can be
                                                applicable to the projects involved.                    AGENCY
                                                                                                                                                               viewed online at www.regulations.gov
                                                   By Delegation Order No. 00–037.00B,                  [EPA–HQ–OW–2005–0023; FRL–9961–97–                     or in person at the EPA Docket Center,
                                                effective November 19, 2016, the                        OW]                                                    WJC West, Room 3334, 1301
                                                Secretary of Energy delegated: (1) The                                                                         Constitution Ave. NW., Washington,
                                                authority to develop power and                          Proposed Information Collection                        DC. The telephone number for the
                                                transmission rates to WAPA’s                            Request; Comment Request; Clean                        Docket Center is 202–566–1744. For
                                                Administrator; (2) the authority to                     Water Act Section 404 State-Assumed                    additional information about EPA’s
                                                confirm, approve, and place such rates                  Programs; EPA ICR No. 0220.13, OMB
                                                                                                                                                               public docket, visit http://www.epa.gov/
                                                into effect on an interim basis to the                  Control No. 2040–0168
                                                                                                                                                               dockets.
                                                Deputy Secretary of Energy; and (3) the                 AGENCY: Environmental Protection                          Pursuant to section 3506(c)(2)(A) of
                                                authority to confirm, approve, and place                Agency (EPA).                                          the PRA, EPA is soliciting comments
                                                into effect on a final basis, to remand or              ACTION: Notice.                                        and information to enable it to: (i)
                                                to disapprove such rates to FERC.                                                                              Evaluate whether the proposed
                                                Existing DOE procedures for public                      SUMMARY:   The Environmental Protection                collection of information is necessary
                                                participation in power rate adjustments                 Agency (EPA) is planning to submit an                  for the proper performance of the
                                                (10 CFR part 903) were published on                     information collection request (ICR),                  functions of the Agency, including
                                                September 18, 1985 (50 FR 37835).                       ‘‘Clean Water Act Section 404 State-                   whether the information will have
                                                                                                        Assumed Programs’’ (EPA ICR No.                        practical utility; (ii) evaluate the
                                                Availability of Information                             0220.13, OMB Control No. 2040–0168)                    accuracy of the Agency’s estimate of the
                                                   All brochures, studies, comments,                    to the Office of Management and Budget                 burden of the proposed collection of
                                                letters, memorandums, or other                          (OMB) for review and approval in                       information, including the validity of
                                                documents WAPA initiates or uses to                     accordance with the Paperwork                          the methodology and assumptions used;
                                                develop the proposed rates will be                      Reduction Act. Before doing so, EPA is                 (iii) enhance the quality, utility, and
                                                available for inspection and copying at                 soliciting public comments on specific                 clarity of the information to be
                                                the Upper Great Plains Regional Office,                 aspects of the proposed information                    collected; and (iv) minimize the burden
                                                located at 2900 4th Avenue North, 6th                   collection as described below. This is a               of the collection of information on those
                                                Floor, Billings, Montana. These                         proposed extension of the ICR No.                      who are to respond, including through
                                                documents and supporting information                    0220.12, which is currently approved                   the use of appropriate automated
                                                will be posted on WAPA’s Web site as                    through November 30, 2017. An Agency                   electronic, mechanical, or other
                                                they become available under the ‘‘2018                  may not conduct or sponsor and a                       technological collection techniques or
                                                Firm Rate Adjustment’’ section located                  person is not required to respond to a                 other forms of information technology,
                                                at https://www.wapa.gov/regions/UGP/                    collection of information unless it                    e.g., permitting electronic submission of
                                                rates/Pages/2018-firm-rate-                             displays a currently valid OMB control                 responses. EPA will consider the
                                                adjustment.aspx.                                        number.                                                comments received and amend the ICR
                                                Ratemaking Procedure Requirements                       DATES: Comments must be submitted on                   as appropriate. The final ICR package
                                                                                                        or before August 2, 2017.                              will then be submitted to OMB for
                                                Environmental Compliance                                ADDRESSES: Submit your comments,                       review and approval. At that time, EPA
                                                   In compliance with the National                      referencing Docket ID No. EPA–HQ–                      will issue another Federal Register
                                                Environmental Policy Act (NEPA) of                      OW–2005–0023, online using                             notice to announce the submission of
                                                1969, 42 U.S.C. 4321–4347; the Council                  www.regulations.gov (our preferred                     the ICR to OMB and the opportunity to
                                                on Environmental Quality Regulations                    method), by email to ow-docket@                        submit additional comments to OMB.
                                                for implementing NEPA (40 CFR parts                     epa.gov, or by mail to: EPA Docket                        Abstract: Section 404(g) of the Clean
                                                1500–1508); and DOE NEPA                                Center, Environmental Protection                       Water Act authorizes states [and tribes]
                                                Implementing Procedures and                             Agency, Mail Code 28221T, 1200                         to assume the section 404 permit
                                                Guidelines (10 CFR part 1021), WAPA                     Pennsylvania Ave. NW., Washington,                     program for discharges of dredged or fill
                                                is in the process of determining whether                DC 20460.                                              material into certain Waters of the U.S.
                                                an environmental assessment or an                          EPA’s policy is that all comments                   This ICR covers the collection of
                                                environmental impact statement should                   received will be included in the public                information EPA needs to perform its
                                                be prepared or if this action can be                    docket without change including any                    program approval and oversight
                                                                                                        personal information provided, unless                  responsibilities and the state/tribe needs
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                                                categorically excluded from those
                                                requirements.                                           the comment includes profanity, threats,               to implement its program.
                                                                                                        information claimed to be Confidential                    Request to assume CWA section 404
                                                Determination Under Executive Order                     Business Information (CBI) or other                    permit program. States/tribes must
                                                12866                                                   information whose disclosure is                        demonstrate that they meet the statutory
                                                  WAPA has an exemption from                            restricted by statute.                                 and regulatory requirements (40 CFR
                                                centralized regulatory review under                     FOR FURTHER INFORMATION CONTACT:                       233) for an approvable program.
                                                Executive Order 12866; accordingly, no                  Kathy Hurld, Wetlands Division, Office                 Specified information and documents


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Document Created: 2018-11-14 10:20:07
Document Modified: 2018-11-14 10:20:07
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of Proposed Firm Power Service and Sale of Surplus Products Rates.
DatesThe consultation and comment period will begin July 3, 2017 and end October 2, 2017. WAPA will present a detailed explanation of the proposed rates and other modifications at public information forums being held on the following dates and times:
ContactMrs. Linda Cady-Hoffman, Rates Manager, Upper Great Plains Region, Western Area Power Administration, 2900 4th Avenue North, 6th Floor, Billings, MT 59101-1266, telephone: (406) 255-2920, email: [email protected]@wapa.gov.
FR Citation82 FR 30858 

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