82 FR 44772 - Integrated System Rate Schedules
DEPARTMENT OF ENERGY
Southwestern Power Administration Federal Register Volume 82, Issue 185 (September 26, 2017)
Southwestern Power Administration
Federal Register Volume 82, Issue 185 (September 26, 2017)
| Page Range | 44772-44783 | |
| FR Document | 2017-20034 |
[Federal Register Volume 82, Number 185 (Tuesday, September 26, 2017)] [Notices] [Pages 44772-44783] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-20034] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Southwestern Power Administration Integrated System Rate Schedules AGENCY: Southwestern Power Administration, DOE. ACTION: Notice of extension. ----------------------------------------------------------------------- SUMMARY: The Deputy Secretary has approved and placed into effect on an interim basis Rate Order No. SWPA-72 which extends the existing rate schedules for the Integrated System: Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission Service Rate Schedule EE-13, Wholesale Rates for Excess Energy This is an interim rate action effective October 1, 2017, extending for a period of two years through September 30, 2019. DATES: The effective period for the rate schedules specified in Rate Order No. SWPA-72 is October 1, 2017, through September 30, 2019. FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice President, Chief Operating Office, Office of Corporate Operations, Southwestern Power Administration, U.S. Department of Energy, One West Third Street, Tulsa, Oklahoma 74103, (918) 595-6646, [email protected] or facsimile transmission (918) 595-6646. SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00- 037.00B, effective November 19, 2016, and 00-001.00F, effective November 17, 2014, and pursuant to the implementation authorities in 10 CFR 903.22(h) and 903.23(a)(3), Rate Order No. SWPA-72 is approved and placed into effect on an interim basis for the period October 1, 2017, through September 30, 2019, for the following rate schedules: Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission Service Rate Schedule EE-13, Wholesale Rates for Excess Energy These current rate schedules for the Integrated System were confirmed and approved on a final basis by the Federal Energy Regulatory Commission (FERC) on January 9, 2014, for the period October 1, 2013, through September 30, 2017. Since initial FERC approval, a new section within rate schedule NFTS-13 was added to change from a stated rate to a revenue-requirement based methodology to better align with practices utilized by the Southwest Power Pool, Inc. Regional Transmission Organization. The revised rate schedule NFTS-13 was designated NFTS-13A and was subsequently approved on a final basis by FERC on March 9, 2017 in Docket No. EF14-1-001 (158 FERC ] 62,182) effective through September 30, 2017. The Administrator, Southwestern, completed an annual review of the continuing adequacy of the existing hydroelectric rate schedules for the Integrated System. This review, as presented in the 2017 Power Repayment Studies (PRSs), indicated the need for a revenue adjustment of 0.7 percent to continue to satisfy cost recovery criteria. Because the 0.7 percent revenue adjustment was within Southwestern's established2 percent rate adjustment threshold, the Administrator deferred the revenue adjustment and now adopts the two- year extension of the Integrated System rate schedules. The Administrator has followed Title 10, part 903 subpart A, of the Code of Federal Regulations, ``Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions'' for the proposed extension to the rate schedules. The public was advised by notice published in the Federal Register (82 FR 27062), June 13, 2017, of the proposed extension of the rate schedules and of the opportunity to provide written comments for a period of 30 days ending July 13, 2017. No comments were received. Information regarding the extension of these rate schedules, including the rate schedules and other supporting material, is available for public review in the offices of Southwestern Power Administration, Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103. I have reviewed the Southwestern proposal and I approve Rate Order No. SWPA-72. Dated: September 13, 2017. Dan Brouillette, Deputy Secretary. UNITED STATES OF AMERICA DEPARTMENT OF ENERGY DEPUTY SECRETARY In the matter of: Southwestern Power Administration Integrated System Rates Rate Order No. SWPA-72 ORDER APPROVING EXTENSION OF RATE SCHEDULES ON AN INTERIM BASIS Pursuant to Sections 302(a) and 301(b) of the Department of Energy Organization Act, Public Law 95-91, the functions of the Secretary of the Interior and the Federal Power Commission under Section 5 of the Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern Power Administration (Southwestern) were transferred to and vested in the Secretary of Energy. By Delegation Order No. 00-037.00B, the Secretary of Energy delegated to the Administrator, Southwestern, the authority to develop power and transmission rates, delegated to the Deputy Secretary of Energy the authority to confirm, approve, and place in effect such rates on an interim basis and delegated to the Federal Energy Regulatory Commission (FERC) the authority to confirm and approve on a final basis or to disapprove rates developed by the Administrator under the delegation. Pursuant to that delegated authority, the Deputy Secretary has issued this interim rate order. BACKGROUND The following rate schedules for the Integrated System were confirmed and approved on a final basis by FERC on January 9, 2014, for the period October 1, 2013, through September 30, 2017. Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power Rate Schedule NFTS-13A, Wholesale Rates Non-Federal Transmission Service Rate Schedule EE-13, Wholesale Rate for Excess Energy Since initial FERC approval, a new section within rate schedule NFTS-13 was added to change from a stated rate to a revenue- requirement based methodology to better align with practices utilized by the Southwest Power Pool, Inc. Regional Transmission Organization. The revised rate schedule NFTS-13 was designated NFTS- 13A and was subsequently approved on a final basis by FERC on March 9, 2017 in Docket No. EF14-1-001 (158 FERC ] 62,182) effective through September 30, 2017. Southwestern followed Title 10 Part 903 of the Code of Federal Regulations, ``Procedures for Public Participation in Power and Transmission Rate Adjustments and Extensions'' (Part 903) for the proposed extension of the rate schedules. An opportunity for customers and other interested members of the public to review and comment on the proposed extension of the rate schedules was announced by notice published in the Federal Register on June 13, 2017, (82 FR 27062), with written comments due by July 13, 2017. No comments were received. [[Page 44773]] DISCUSSION The existing Integrated System rate schedules are based on the 2013 Power Repayment Studies (PRSs). PRSs have been completed on the Integrated System each year since approval of the existing rate schedules. The estimated revised annual revenue identified by the PRSs since the 2013 PRSs have indicated the need for minimal rate increases. Since the revenue changes reflected by the PRSs were within the plus-or-minus two percent rate adjustment threshold established by the Administrator on June 23, 1987, these rate adjustments were deferred in the best interest of the government. The 2017 PRSs indicated the need for an annual revenue increase of 0.7 percent. As has been the case since the existing rate schedules were approved, the 2017 rate adjustment fell within Southwestern's plus-or-minus two percent rate adjustment threshold and was deferred by the Administrator with no rate filing necessary. However, the existing rate schedules are set to expire on September 30, 2017. Consequently, Southwestern proposes to extend the existing rate schedules for a two-year period ending September 30, 2019, on an interim basis under the implementation authorities noted in 10 CFR 903.22(h) and 903.23(a)(3). COMMENTS AND RESPONSES Southwestern received no comments regarding the extension of the Integrated System rate schedules. AVAILABILITY OF INFORMATION Information regarding the extension of the rate schedules is available for public review in the offices of Southwestern Power Administration, Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103. ADMINISTRATION'S CERTIFICATION The 2013 Integrated System PRSs indicated that the current rate schedules will repay all costs of the Integrated System including amortization of the power investment consistent with the provisions of Department of Energy Order No. RA 6120.2. The 2017 Integrated System PRSs indicate the need for an annual revenue increase of 0.7 percent. However, the 2017 rate adjustment falls within Southwestern's established plus-or-minus two percent rate adjustment threshold and was deferred. Southwestern's 2018 PRSs will determine the appropriate level of revenues needed for the next rate period. In accordance with Delegation Order Nos. 00-037.00B (November 19, 2016), and 00-001.00F, effective November 17, 2014, and Section 5 of the Flood Control Act of 1944, the Administrator has determined that the existing Integrated System rate schedules are the lowest possible rates consistent with sound business principles, and their extension is consistent with applicable law. ENVIRONMENT The Southwestern NEPA Compliance Officer determined that this class of actions is categorically excluded from the requirements of preparing either an Environmental Impact Statement or an Environmental Assessment. No additional evaluation of the environmental impact of the extension of the existing rate schedules was conducted since no change in anticipated revenues has been made to the currently-approved Integrated System rate schedules. ADMINISTRATIVE PROCEDURES The Administrative Procedure Act (5 U.S.C. 553(d)) prescribes that the required publication or service of a substantive rule shall be made not less than 30 days before its effective date, except (1) a substantive rule that grants or recognizes an exemption or relieves a restriction; (2) interpretative rules and statements of policy; or (3) as otherwise provided by the agency for good cause found and published with the rule. The Department of Energy finds good cause to waive the 30-day delay in effective date of this action as unnecessary for the following reasons: (1) this is an extension of rates previously approved by FERC, pursuant to 10 CFR 903.23(a); (2) there are no substantive changes as the existing rate schedules and anticipated revenues remain the same; and (3) the Administrator provided notice and opportunity for public comment more than 30 days prior to the effective date of the rate extension and received no comments. ORDER In view of the foregoing and pursuant to the authority delegated to me by the Secretary of Energy, I hereby extend on an interim basis, for the period of two years, effective October 1, 2017, through September 30, 2019, the current rate schedules for the Integrated System: Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission Service Rate Schedule EE-13, Wholesale Rates for Excess Energy Dated: September 17, 2017 ----------------------------------------------------------------------- Dan Brouillette, Deputy Secretary. UNITED STATES DEPARTMENT OF ENERGY SOUTHWESTERN POWER ADMINISTRATION RATE SCHEDULE P-13 \1\ ** --------------------------------------------------------------------------- \1\ Supersedes Rate Schedule P-11. ** Extended through September 30, 2019 by approval of Rate Order No. SWPA-72 by the Deputy Secretary of Energy. --------------------------------------------------------------------------- WHOLESALE RATES FOR HYDRO PEAKING POWER Effective: During the period October 1, 2013, through September 30, 2019**, in accordance with Federal Energy Regulatory Commission order issued January 9, 2014, Docket No. EF14-1-000. Available: In the marketing area of Southwestern Power Administration (Southwestern), described generally as the States of Arkansas, Kansas, Louisiana, Missouri, Oklahoma, and Texas. Applicable: To wholesale Customers which have contractual rights from Southwestern to purchase Hydro Peaking Power and associated energy (Peaking Energy and Supplemental Peaking Energy). Character and Conditions of Service: Three-phase, alternating current, delivered at approximately 60 Hertz, at the nominal voltage(s), at the point(s) of delivery, and in such quantities as are specified by contract. 1. Definitions of Terms 1.2. Ancillary Services The services necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the System of Southwestern in accordance with good utility practice, which include the following: 1.2.1. Scheduling, System Control, and Dispatch Service is provided by Southwestern as Balancing Authority Area operator and is in regard to interchange and load-match scheduling and related system control and dispatch functions. 1.2.2. Reactive Supply and Voltage Control from Generation Sources Service is provided at transmission facilities in the System of Southwestern to produce or absorb reactive power and to maintain transmission voltages within specific limits. 1.2.3. Regulation and Frequency Response Service is the continuous balancing of generation and interchange resources accomplished by raising or lowering the output of on-line generation as necessary to follow the moment-by-moment changes in load and to maintain frequency within a Balancing Authority Area. 1.2.4. Spinning Operating Reserve Service maintains generating units on-line, but loaded at less than maximum output, which may be used to service load immediately when disturbance conditions are experienced due to a sudden loss of generation or load. 1.2.5. Supplemental Operating Reserve Service provides an additional amount of operating reserve sufficient to reduce Area Control Error to zero within 10 minutes following loss of generating capacity which would result from the most severe single contingency. 1.2.6. Energy Imbalance Service corrects for differences over a period of time between schedules and actual hourly deliveries of energy to a load. Energy delivered or received within the authorized bandwidth for this service is accounted for as an inadvertent flow and is returned to the providing party by the receiving party in accordance with standard utility practice or [[Page 44774]] a contractual arrangement between the parties. 1.3. Customer The entity which is utilizing and/or purchasing Federal Power and Federal Energy and services from Southwestern pursuant to this Rate Schedule. 1.4. Demand Period The period of time used to determine maximum integrated rates of delivery for the purpose of power accounting which is the 60-minute period that begins with the change of hour. 1.5. Federal Power and Energy The power and energy provided from the System of Southwestern. 1.6. Hydro Peaking Power The Federal Power that Southwestern sells and makes available to the Customers through their respective Power Sales Contracts in accordance with this Rate Schedule. 1.7. Peaking Billing Demand The quantity equal to the Peaking Contract Demand for any month unless otherwise provided by the Customer's Power Sales Contract. 1.8. Peaking Contract Demand The maximum rate in kilowatts at which Southwestern is obligated to deliver Federal Energy associated with Hydro Peaking Power as set forth in the Customer's Power Sales Contract. 1.9. Peaking Energy The Federal Energy associated with Hydro Peaking Power that Southwestern sells and makes available to the Customer in accordance with the terms and conditions of the Customer's Power Sales Contract. 1.10. Power Sales Contract The Customer's contract with Southwestern for the sale of Federal Power and Federal Energy. 1.11. Supplemental Peaking Energy The Federal Energy associated with Hydro Peaking Power that Southwestern sells and makes available to the Customer if determined by Southwestern to be available and that is in addition to the quantity of Peaking Energy purchased by the Customer in accordance with the terms and conditions of the Customer's Power Sales Contract. 1.12. System of Southwestern The transmission and related facilities owned by Southwestern, and/ or the generation, transmission, and related facilities owned by others, the capacity of which, by contract, is available to and utilized by Southwestern to satisfy its contractual obligations to the Customer. 1.13. Uncontrollable Force Any force which is not within the control of the party affected, including, but not limited to failure of water supply, failure of facilities, flood, earthquake, storm, lightning, fire, epidemic, riot, civil disturbance, labor disturbance, sabotage, war, act of war, terrorist acts, or restraint by court of general jurisdiction, which by exercise of due diligence and foresight such party could not reasonably have been expected to avoid. 2. Wholesale Rates, Terms, and Conditions for Hydro Peaking Power, Peaking Energy, Supplemental Peaking Energy, and Associated Services Unless otherwise specified, this Section 2 is applicable to all sales under the Customer's Power Sales Contract. 2.2. Hydro Peaking Power Rates, Terms, and Conditions 2.2.1. Monthly Capacity Charge for Hydro Peaking Power $4.50 per kilowatt of Peaking Billing Demand. 2.2.2. Services Associated with Capacity Charge for Hydro Peaking Power The capacity charge for Hydro Peaking Power includes such transmission services as are necessary to integrate Southwestern's resources in order to reliably deliver Hydro Peaking Power and associated energy to the Customer. This capacity charge also includes two Ancillary Services charges: Scheduling, System Control, and Dispatch Service; and Reactive Supply and Voltage Control from Generation Sources Service. 2.2.3. Secondary Transmission Service under Capacity Associated with Hydro Peaking Power Customers may utilize the transmission capacity associated with Peaking Contract Demand for the transmission of non-Federal energy, on a non-firm, as-available basis, at no additional charge for such transmission service or associated Ancillary Services, under the following terms and conditions: 2.2.3.1. The sum of the capacity, for any hour, which is used for Peaking Energy, Supplemental Peaking Energy, and Secondary Transmission Service, may not exceed the Peaking Contract Demand; 2.2.3.2. The non-Federal energy transmitted under such secondary service is delivered to the Customer's point of delivery for Hydro Peaking Power; 2.2.3.3. The Customer commits to provide Real Power Losses associated with such deliveries of non-Federal energy; and 2.2.3.4. Sufficient transfer capability exists between the point of receipt into the System of Southwestern of such non-Federal energy and the Customer's point of delivery for Hydro Peaking Power for the time period that such secondary transmission service is requested. 2.2.4. Adjustment for Reduction in Service If, during any month, the Peaking Contract Demand associated with a Power Sales Contract in which Southwestern has the obligation to provide 1,200 kilowatthours of Peaking Energy per kilowatt of Peaking Contract Demand is reduced by Southwestern for a period or periods of not less than two consecutive hours by reason of an outage caused by either an Uncontrollable Force or by the installation, maintenance, replacement or malfunction of generation, transmission and/or related facilities on the System of Southwestern, or insufficient pool levels, the Customer's capacity charges for such month will be reduced for each such reduction in service by an amount computed under the formula: R = (C x K x H) / S with the factors defined as follows: R = The dollar amount of reduction in the monthly total capacity charges for a particular reduction of not less than two consecutive hours during any month, except that the total amount of any such reduction shall not exceed the product of the Customer's capacity charges associated with Hydro Peaking Power times the Peaking Billing Demand. C = The Customer's capacity charges associated with Hydro Peaking Power for the Peaking Billing Demand for such month. K = The reduction in kilowatts in Peaking Billing Demand for a particular event. H = The number of hours duration of such particular reduction. S = The number of hours that Peaking Energy is scheduled during such month, but not less than 60 hours times the Peaking Contract Demand. Such reduction in charges shall fulfill Southwestern's obligation to deliver Hydro Peaking Power and Peaking Energy. 2.3. Peaking Energy and Supplemental Peaking Energy Rates, Terms, and Conditions 2.3.1. Peaking Energy Charge $0.0094 per kilowatthour of Peaking Energy delivered plus the Purchased Power Adder as defined in Section 2.2.3 of this Rate Schedule. 2.3.2. Supplemental Energy Charge $0.0094 per kilowatthour of Supplemental Peaking Energy delivered. 2.3.3. Purchased Power Adder A purchased power adder of $0.0059 per kilowatthour of Peaking Energy delivered, as adjusted by the Administrator, Southwestern, in accordance with the procedure within this Rate Schedule. 2.3.3.1. Applicability of Purchased Power Adder The Purchased Power Adder shall apply to sales of Peaking Energy. The Purchased Power Adder shall not apply to sales of Supplemental Peaking Energy or sales to any Customer which, by contract, has assumed the obligation to supply energy to fulfill the minimum of 1,200 kilowatthours of Peaking Energy per kilowatt of Peaking Contract Demand during a contract year (hereinafter ``Contract Support Arrangements''). 2.3.3.2. Procedure for Determining Net Purchased Power Adder Adjustment Not more than twice annually, the Purchased Power Adder of $0.0059 (5.9 mills) per kilowatthour of Peaking Energy, as noted in this Rate Schedule, may be adjusted by the Administrator, Southwestern, by an amount [[Page 44775]] up to a total of $0.0059 (5.9 mills) per kilowatthour per year, as calculated by the following formula: ADJ = (PURCH-EST + DIF) / SALES with the factors defined as follows: ADJ = The dollar per kilowatthour amount of the total adjustment, plus or minus, to be applied to the net Purchased Power Adder, rounded to the nearest $0.0001 per kilowatthour, provided that the total ADJ to be applied in any year shall not vary from the then- effective ADJ by more than $0.0059 per kilowatthour; PURCH = The actual total dollar cost of Southwestern's System Direct Purchases as accounted for in the financial records of the Southwestern Federal Power System for the period; EST = The estimated total dollar cost ($13,273,800 per year) of Southwestern's System Direct Purchases used as the basis for the Purchased Power Adder of $0.0059 per kilowatthour of Peaking Energy; DIF = The accumulated remainder of the difference in the actual and estimated total dollar cost of Southwestern's System Direct Purchases since the effective date of the currently approved Purchased Power Adder set forth in this Rate Schedule, which remainder is not projected for recovery through the ADJ in any previous periods; SALES = The annual Total Peaking Energy sales projected to be delivered (2,241,300,000 KWh per year) from the System of Southwestern, which total was used as the basis for the $0.0059 per kilowatthour Purchased Power Adder. 2.4. Transformation Service Rates, Terms, and Conditions 2.4.1. Monthly Capacity Charge for Transformation Service $0.46 per kilowatt will be assessed for capacity used to deliver energy at any point of delivery at which Southwestern provides transformation service for deliveries at voltages of 69 kilovolts or less from higher voltage facilities. 2.4.2. Applicability of Capacity Charge for Transformation Service Unless otherwise specified by contract, for any particular month, a charge for transformation service will be assessed on the greater of (1) that month's highest metered demand, or (2) the highest metered demand recorded during the previous 11 months, at any point of delivery. For the purpose of this Rate Schedule, the highest metered demand will be based on all deliveries, of both Federal and non- Federal energy, from the System of Southwestern, at such point during such month. 2.5. Ancillary Services Rates, Terms, and Conditions 2.5.1. Capacity Charges for Ancillary Services 2.5.1.1. Regulation and Frequency Response Service Monthly rate of $0.07 per kilowatt of Peaking Billing Demand plus the Regulation Purchased Adder as defined in Section 2.4.5 of this Rate Schedule. 2.5.1.2. Spinning Operating Reserve Service Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand. Daily rate of $0.00066 per kilowatt for non-Federal generation inside Southwestern's Balancing Authority Area. 2.5.1.3. Supplemental Operating Reserve Service Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand. Daily rate of $0.00066 per kilowatt for non-Federal generation inside Southwestern's Balancing Authority Area. 2.5.1.4. Energy Imbalance Service $0.0 per kilowatt for all reservation periods. 2.5.2. Availability of Ancillary Services Regulation and Frequency Response Service and Energy Imbalance Service are available only for deliveries of power and energy to load within Southwestern's Balancing Authority Area. Spinning Operating Reserve Service and Supplemental Operating Reserve Service are available only for deliveries of non-Federal power and energy generated by resources located within Southwestern's Balancing Authority Area and for deliveries of all Hydro Peaking Power and associated energy from and within Southwestern's Balancing Authority Area. Where available, such Ancillary Services must be taken from Southwestern; unless, arrangements are made in accordance with Section 2.4.4 of this Rate Schedule. 2.5.3. Applicability of Charges for Ancillary Services For any month, the charges for Ancillary Services for deliveries of Hydro Peaking Power shall be based on the Peaking Billing Demand. The daily charge for Spinning Operating Reserve Service and Supplemental Operating Reserve Service for non-Federal generation inside Southwestern's Balancing Authority Area shall be applied to the greater of Southwestern's previous day's estimate of the peak, or the actual peak, in kilowatts, of the internal non-Federal generation. 2.5.4. Provision of Ancillary Services by Others Customers for which Ancillary Services are made available as specified above, must inform Southwestern by written notice of the Ancillary Services which they do not intend to take and purchase from Southwestern, and of their election to provide all or part of such Ancillary Services from their own resources or from a third party. Subject to Southwestern's approval of the ability of such resources or third parties to meet Southwestern's technical and operational requirements for provision of such Ancillary Services, the Customer may change the Ancillary Services which it takes from Southwestern and/or from other sources at the beginning of any month upon the greater of 60 days notice or upon completion of any necessary equipment modifications necessary to accommodate such change; Provided, That, if the Customer chooses not to take Regulation and Frequency Response Service, which includes the associated Regulation Purchased Adder, the Customer must pursue these services from a different host Balancing Authority; thereby moving all metered loads and resources from Southwestern's Balancing Authority Area to the Balancing Authority Area of the new host Balancing Authority. Until such time as that meter reconfiguration is accomplished, the Customer will be charged for the Regulation and Frequency Response Service and applicable Adder then in effect. The Customer must notify Southwestern by July 1 of this choice, to be effective the subsequent calendar year. 2.5.5. Regulation Purchased Adder Southwestern has determined the amount of energy used from storage to provide Regulation and Frequency Response Service in order to meet Southwestern's Balancing Authority Area requirements. The replacement value of such energy used shall be recovered through the Regulation Purchased Adder. The Regulation Purchased Adder during the time period of January 1 through December 31 of the current calendar year is based on the average annual use of energy from storage \1\ for Regulation and Frequency Response Service and Southwestern's estimated purchased power price for the corresponding year from the most currently approved Power Repayment Studies. \1\ The average annual use of energy from storage for Regulation and Frequency Response Service is based on Southwestern studies. --------------------------------------------------------------------------- The Regulation Purchased Adder will be phased in over a period of four (4) years as follows: ------------------------------------------------------------------------ Regulation Purchased Adder for the Incremental Replacement Year Value of Energy Used from Storage ------------------------------------------------------------------------ 2014.................................... \1/4\ of the average annual use of energy from storage x 2014 Purchased Power price. 2015.................................... \1/2\ of the average annual use of energy from storage x 2015 Purchased Power price. 2016.................................... \3/4\ of the average annual use of energy from storage x 2016 Purchased Power price. 2017 and thereafter..................... The total average annual use of energy from storage x the applicable Purchased Power price. ------------------------------------------------------------------------ [[Page 44776]] 2.5.5.1. Applicability of Regulation Purchased Adder The replacement value of the estimated annual use of energy from storage for Regulation and Frequency Response Service shall be recovered by Customers located within Southwestern's Balancing Authority Area on a non-coincident peak ratio share basis, divided into twelve equal monthly payments, in accordance with the formula in Section 2.4.5.2. If the Regulation Purchased Adder is determined and applied under Southwestern's Rate Schedule NFTS-13, then it shall not be applied here. 2.5.5.2. Procedure for Determining Regulation Purchased Adder Unless otherwise specified by contract, the Regulation Purchased Adder for an individual Customer shall be based on the following formula rate, calculated to include the replacement value of the estimated annual use of energy from storage by Southwestern for Regulation and Frequency Response Service. RPA = The Regulation Purchased Adder for an individual Customer per month, which is as follows: [(L Customer / LTotal ) x RPTotal ] / 12 with the factors defined as follows: LCustomer = The sum in MW of the following three factors: (1) The Customer's highest metered load plus generation used to serve the Customer's load that is accounted for through a reduction in the Customer's metered load (referred to as `generation behind the meter') during the previous calendar year, and (2) The Customer's highest rate of Scheduled Exports \2\ during the previous calendar year, and (3) The Customer's highest rate of Scheduled Imports \2\ during the previous calendar year. --------------------------------------------------------------------------- \2\ Scheduled Exports and Scheduled Imports are transactions, such as sales and purchases respectively, which are in addition to a Customer's metered load that contribute to Southwestern's Balancing Authority Area need for regulation. --------------------------------------------------------------------------- LTotal = The sum of all LCustomer factors for all Customers that were inside Southwestern's Balancing Authority Area at the beginning of the previous calendar year in MW. RPTotal = The ``net'' cost in dollars and cents based on Southwestern's estimated purchased power price for the corresponding year from the most currently approved Power Repayment Studies multiplied by the average annual use of energy from storage, as provided for in the table in Section 2.4.5, to support Southwestern's ability to regulate within its Balancing Authority Area. The ``net'' cost in dollars and cents shall be adjusted by subtracting the product of the quantity of such average annual use of energy from storage in MWh and Southwestern's highest rate in dollars per MWh for Supplemental Peaking Energy during the previous calendar year. For Customers that have aggregated their load, resources, and scheduling into a single node by contract within Southwestern's Balancing Authority Area, the individual Customer's respective Regulation Purchased Adder shall be that Customer's ratio share of the Regulation Purchased Adder established for the node. Such ratio share shall be determined for the Customer on a non-coincident basis and shall be calculated for the Customer from their highest metered load plus generation behind the meter. 2.5.6. Energy Imbalance Service Limitations Energy Imbalance Service primarily applies to deliveries of power and energy which are required to satisfy a Customer's load. As Hydro Peaking Power and associated energy are limited by contract, the Energy Imbalance Service bandwidth specified for Non-Federal Transmission Service does not apply to deliveries of Hydro Peaking Power, and therefore Energy Imbalance Service is not charged on such deliveries. Customers who consume a capacity of Hydro Peaking Power greater than their Peaking Contract Demand may be subject to a Capacity Overrun Penalty. 3. Hydro Peaking Power Penalties, Terms, and Conditions 3.2. Capacity Overrun Penalty 3.2.1. Penalty Charge for Capacity Overrun For each hour during which Hydro Peaking Power was provided at a rate greater than that to which the Customer is entitled, the Customer will be charged a Capacity Overrun Penalty at the following rates: ------------------------------------------------------------------------ Months Associated With Charge Rate per Kilowatt ------------------------------------------------------------------------ March, April, May, October, November, December....... $0.15 January, February, June, July, August, September..... 0.30 ------------------------------------------------------------------------ 3.2.2. Applicability of Capacity Overrun Penalty Customers which have loads within Southwestern's Balancing Authority Area are obligated by contract to provide resources, over and above the Hydro Peaking Power and associated energy purchased from Southwestern, sufficient to meet their loads. A Capacity Overrun Penalty shall be applied only when the formulas provided in Customers' respective Power Sales Contracts indicate an overrun on Hydro Peaking Power, and investigation determines that all resources, both firm and non-firm, which were available at the time of the apparent overrun were insufficient to meet the Customer's load. 3.3. Energy Overrun Penalty 3.3.1. Penalty Charge for Energy Overrun $0.1034 per kilowatthour for each kilowatthour of overrun. 3.3.2. Applicability of Energy Overrun Penalty By contract, the Customer is subject to limitations on the maximum amounts of Peaking Energy which may be scheduled under the Customer's Power Sales Contract. When the Customer schedules an amount in excess of such maximum amounts, such Customer is subject to the Energy Overrun Penalty. 3.4. Power Factor Penalty 3.4.1. Requirements Related to Power Factor Any Customer served from facilities owned by or available by contract to Southwestern will be required to maintain a power factor of not less than 95 percent and will be subject to the following provisions. 3.4.2. Determination of Power Factor The power factor will be determined for all Demand Periods and shall be calculated under the formula: [GRAPHIC] [TIFF OMITTED] TN26SE17.000 with the factors defined as follows: PF = The power factor for any Demand Period of the month. kWh = The total quantity of energy which is delivered during such Demand Period to the point of delivery or interconnection in accordance with Section 3.3.4. rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs) delivered during such Demand Period to the point of delivery or interconnection in accordance with Section 3.3.4. 3.4.3. Penalty Charge for Power Factor The Customer shall be assessed a penalty for all Demand Periods of a month where the power factor is less than 95 percent lagging. For any Demand Period during a particular [[Page 44777]] month such penalty shall be in accordance with the following formula: C = D x (0.95-LPF) x $0.10 with the factors defined as follows: C = The charge in dollars to be assessed for any particular Demand Period of such month that the determination of power factor ``PF'' is calculated to be less than 95 percent lagging. D = The Customer's demand in kilowatts at the point of delivery for such Demand Period in which a low power factor was calculated. LPF = The lagging power factor, if any, determined by the formula ``PF'' for such Demand Period. If C is negative, then C = zero (0). 3.4.4. Applicability of Power Factor Penalty The Power Factor Penalty is applicable to radial interconnections with the System of Southwestern. The total Power Factor Penalty for any month shall be the sum of all charges ``C'' for all Demand Periods of such month. No penalty is assessed for leading power factor. Southwestern, in its sole judgment and at its sole option, may determine whether power factor calculations should be applied to (i) a single physical point of delivery, (ii) a combination of physical points of delivery where a Customer has a single, electrically integrated load, (iii) or interconnections. The general criteria for such decision shall be that, given the configuration of the Customer's and Southwestern's systems, Southwestern will determine, in its sole judgment and at its sole option, whether the power factor calculation more accurately assesses the detrimental impact on Southwestern's system when the above formula is calculated for a single physical point of delivery, a combination of physical points of delivery, or for an interconnection as specified by an Interconnection Agreement. Southwestern, at its sole option, may reduce or waive Power Factor Penalties when, in Southwestern's sole judgment, low power factor conditions were not detrimental to the System of Southwestern due to particular loading and voltage conditions at the time the power factor dropped below 95 percent lagging. 4. Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions 4.2. Real Power Losses Customers are required to self-provide all Real Power Losses for non-Federal energy transmitted by Southwestern on behalf of such Customers under the provisions detailed below. Real Power Losses are computed as four (4) percent of the total amount of non-Federal energy transmitted by Southwestern. The Customer's monthly Real Power Losses are computed each month on a megawatthour basis as follows: ML = 0.04 x NFE with the factors defined as follows: ML = The total monthly loss energy, rounded to the nearest megawatthour, to be scheduled by a Customer for receipt by Southwestern for Real Power Losses associated with non-Federal energy transmitted on behalf of such Customer; and NFE = The amount of non-Federal energy that was transmitted by Southwestern on behalf of a Customer during a particular month. The Customer must schedule or cause to be scheduled to Southwestern, Real Power Losses for which it is responsible subject to the following conditions: 4.2.1. The Customer shall schedule and deliver Real Power Losses back to Southwestern during the second month after they were incurred by Southwestern in the transmission of the Customer's non- Federal power and energy over the System of Southwestern unless such Customer has accounted for Real Power Losses as part of a metering arrangement with Southwestern. 4.2.2. On or before the twentieth day of each month, Southwestern shall determine the amount of non-Federal loss energy it provided on behalf of the Customer during the previous month and provide a written schedule to the Customer setting forth hour-by- hour the quantities of non-Federal energy to be delivered to Southwestern as losses during the next month. 4.2.3. Real Power Losses not delivered to Southwestern by the Customer, according to the schedule provided, during the month in which such losses are due shall be billed by Southwestern to the Customer to adjust the end-of-month loss energy balance to zero (0) megawatthours and the Customer shall be obliged to purchase such energy at the following rates: ------------------------------------------------------------------------ Rate per Months associated with charge kilowatthour ------------------------------------------------------------------------ March, April, May, October, November, December....... $0.15 January, February, June, July, August, September..... $0.30 ------------------------------------------------------------------------ 4.2.4. Real Power Losses delivered to Southwestern by the Customer in excess of the losses due during the month shall be purchased by Southwestern from the Customer at a rate per megawatthour equal to Southwestern's rate per megawatthour for Supplemental Peaking Energy, as set forth in Southwestern's then- effective Rate Schedule for Hydro Peaking Power to adjust such hourly end-of-month loss energy balance to zero (0) megawatthours. UNITED STATES DEPARTMENT OF ENERGY SOUTHWESTERN POWER ADMINISTRATION RATE SCHEDULE NFTS-13 \1\ ** --------------------------------------------------------------------------- \1\ Supersedes Rate Schedule NFTS-13. ** Extended through September 30, 2019 by approval of Rate Order No. SWPA-72 by the Deputy Secretary of Energy. --------------------------------------------------------------------------- WHOLESALE RATES FOR NON-FEDERAL TRANSMISSION/INTERCONNECTION FACILITIES SERVICE Effective During the period January 1, 2017, through September 30, 2019 **, in accordance with Federal Energy Regulatory Commission order issued March 9, 2017, Docket No. EF14-1-001. Available In the region of the System of Southwestern. Applicable To Customers which have executed Service Agreements with Southwestern for the transmission of non-Federal power and energy over the System of Southwestern or for its use for interconnections. Southwestern will provide services over those portions of the System of Southwestern in which the Administrator, Southwestern, in his or her sole judgment, has determined that uncommitted transmission and transformation capacities in the System of Southwestern are and will be available in excess of the capacities required to market Federal power and energy pursuant to Section 5 of the Flood Control Act of 1944 (58 Stat. 887,890; 16 U.S.C. 825s). Character and Conditions of Service Three-phase, alternating current, delivered at approximately 60 Hertz, at the nominal voltage(s), at the point(s) specified by Service Agreement or Transmission Service Transaction. 1. Definitions of Terms 1.2. Ancillary Services The services necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the System of Southwestern in accordance with good utility practice, which include the following: 1.2.1. Scheduling, System Control, and Dispatch Service is provided by Southwestern as Balancing Authority Area operator and is in regard to interchange and load-match scheduling and related system control and dispatch functions. [[Page 44778]] 1.2.2. Reactive Supply and Voltage Control from Generation Sources Service is provided at transmission facilities in the System of Southwestern to produce or absorb reactive power and to maintain transmission voltages within specific limits. 1.2.3. Regulation and Frequency Response Service is the continuous balancing of generation and interchange resources accomplished by raising or lowering the output of on-line generation as necessary to follow the moment-by-moment changes in load and to maintain frequency within a Balancing Authority Area. 1.2.4. Spinning Operating Reserve Service maintains generating units on-line, but loaded at less than maximum output, which may be used to service load immediately when disturbance conditions are experienced due to a sudden loss of generation or load. 1.2.5. Supplemental Operating Reserve Service provides an additional amount of operating reserve sufficient to reduce Area Control Error to zero within 10 minutes following loss of generating capacity which would result from the most severe single contingency. 1.2.6. Energy Imbalance Service corrects for differences over a period of time between schedules and actual hourly deliveries of energy to a load. Energy delivered or received within the authorized bandwidth for this service is accounted for as an inadvertent flow and is returned to the providing party by the receiving party in accordance with standard utility practice or a contractual arrangement between the parties. 1.3. Customer The entity which is utilizing and/or purchasing services from Southwestern pursuant to this Rate Schedule. 1.4. Demand Period The period of time used to determine maximum integrated rates of delivery for the purpose of power accounting which is the 60-minute period that begins with the change of hour. 1.5. Firm Point-to-Point Transmission Service Transmission service reserved on a firm basis between specific points of receipt and delivery pursuant to either a Firm Transmission Service Agreement or to a Transmission Service Transaction. 1.6. Interconnection Facilities Service A service that provides for the use of the System of Southwestern to deliver energy and/or provide system support at an interconnection. 1.7. Network Integration Transmission Service Transmission service provided under Part III of Southwestern's Open Access Transmission Service Tariff which provides the Customer with firm transmission service for the delivery of capacity and energy from the Customer's resources to the Customer's load. 1.8. Interconnection Facilities Service A service that provides for the use of the System of Southwestern to deliver energy and/or provide system support at an interconnection. 1.9. Network Integration Transmission Service Transmission service provided under Part III of Southwestern's Open Access Transmission Service Tariff which provides the Customer with firm transmission service for the delivery of capacity and energy from the Customer's resources to the Customer's load. 1.10. Non-Firm Point-to-Point Transmission Service Transmission service reserved on a non-firm basis between specific points of receipt and delivery pursuant to a Transmission Service Transaction. 1.11. Point of Delivery Either a single physical point to which electric power and energy are delivered from the System of Southwestern, or a specified set of delivery points which together form a single, electrically integrated load. 1.12. Secondary Transmission Service Service that is associated with Firm Point-to-Point Transmission Service and Network Integration Transmission Service. For Firm Point-to-Point Transmission Service, it consists of transmission service provided on an as-available, non-firm basis, scheduled within the limits of a particular capacity reservation for transmission service, and scheduled from points of receipt, or to points of delivery, other than those designated in a Long-Term Firm Transmission Service Agreement or a Transmission Service Transaction for Firm Point-to-Point Transmission Service. For Network Integration Transmission Service, Secondary Transmission Service consists of transmission service provided on an as-available, non- firm basis, from resources other than the network resources designated in a Network Transmission Service Agreement, to meet the Customer's network load. The charges for Secondary Transmission Service, other than Ancillary Services, are included in the applicable capacity charges for Firm Point-to-Point Transmission Service and Network Integration Transmission Service. 1.13. Service Agreement A contract executed between a Customer and Southwestern for the transmission of non-Federal power and energy over the System of Southwestern or for interconnections which include the following: 1.13.1. Firm Transmission Service Agreement provides for reserved transmission capacity on a firm basis, for a particular point-to-point delivery path. 1.13.2. Interconnection Agreement provides for the use of the System of Southwestern and recognizes the exchange of mutual benefits for such use or provides for application of a charge for Interconnection Facilities Service. 1.13.3. Network Transmission Service Agreement provides for the Customer to request firm transmission service for the delivery of capacity and energy from the Customer's network resources to the Customer's network load, for a period of one year or more. 1.13.4. Non-Firm Transmission Service Agreement provides for the Customer to request transmission service on a non- firm basis. 1.14. Service Request The request made under a Transmission Service Agreement through the Southwest Power Pool, Inc. (hereinafter ``SPP'') Open Access Same- Time Information System (hereinafter ``OASIS'') for reservation of transmission capacity over a particular point-to-point delivery path for a particular period. The Customer must submit hourly schedules for actual service in addition to the Service Request. 1.15. System of Southwestern The transmission and related facilities owned by Southwestern, and/ or the generation, transmission, and related facilities owned by others, the capacity of which, by contract, is available to and utilized by Southwestern to satisfy its contractual obligations to the Customer. 1.16. Transmission Service Transaction A Service Request that has been approved by SPP. 1.17. Uncontrollable Force Any force which is not within the control of the party affected, including, but not limited to failure of water supply, failure of facilities, flood, earthquake, storm, lightning, fire, epidemic, riot, civil disturbance, labor disturbance, sabotage, war, act of war, terrorist acts, or restraint by court of general jurisdiction, which by exercise of due diligence and foresight such party could not reasonably have been expected to avoid. 2. Wholesale Rates, Terms, and Conditions for Firm Point-to-Point Transmission Service, Non-Firm Point-to-Point Transmission Service, Network Integration Transmission Service, and Interconnection Facilities Service 2.2. Firm Point-to-Point Transmission Service Rates, Terms, and Conditions 2.2.1. Monthly Capacity Charge for Firm Point-to-Point Transmission Service $1.48 per kilowatt of transmission capacity reserved in increments of one month of service or invoiced in accordance with a longer term agreement. 2.2.2. Weekly Capacity Charge for Firm Point-to-Point Transmission Service $0.370 per kilowatt of transmission capacity reserved in increments of one week of service. [[Page 44779]] 2.2.3. Daily Capacity Charge for Firm Point-to-Point Transmission Service $0.0673 per kilowatt of transmission capacity reserved in increments of one day of service. 2.2.4. Services Associated with Capacity Charge for Firm Point-to-Point Transmission Service The capacity charge for Firm Point-to-Point Transmission Service includes Secondary Transmission Service, but does not include charges for Ancillary Services associated with actual schedules. 2.2.5. Applicability of Capacity Charge for Firm Point-to-Point Transmission Service Capacity charges for Firm Point-to-Point Transmission Service are applied to quantities reserved by contract under a Firm Transmission Service Agreement or in accordance with a Transmission Service Transaction. A Customer, unless otherwise specified by contract, will be assessed capacity charges on the greatest of (1) the highest metered demand at any particular Point of Delivery during a particular month, rounded up to the nearest whole megawatt, or (2) the highest metered demand recorded at such Point of Delivery during any of the previous 11 months, rounded up to the nearest whole megawatt, or (3) the capacity reserved by contract; which amount shall be considered such Customer's reserved capacity. Secondary Transmission Service for such Customer shall be limited during any month to the most recent metered demand on which that Customer is billed or to the capacity reserved by contract, whichever is greater. 2.3. Non-Firm Point-to-Point Transmission Service Rates, Terms, and Conditions 2.3.1. Monthly Capacity Charge for Non-Firm Point-to-Point Transmission Service 80 percent of the monthly capacity charge for Firm Point-to-Point Transmission Service reserved in increments of one month. 2.3.2. Weekly Capacity Charge for Non-Firm Point-to-Point Transmission Service 80 percent of the monthly capacity charge divided by 4 for Firm Point-to-Point Transmission Service reserved in increments of one week. 2.3.3. Daily Capacity Charge for Non-Firm Point-to-Point Transmission Service 80 percent of the monthly capacity charge divided by 22 for Firm Point-to-Point Transmission Service reserved in increments of one day. 2.3.4. Hourly Capacity Charge for Non-Firm Point-to-Point Transmission Service 80 percent of the monthly capacity charge divided by 352 for Firm Point-to-Point Transmission Service reserved in increments of one hour. 2.3.5. Applicability of Charges for Non-Firm Point-to-Point Transmission Service Capacity charges for Non-Firm Point-to-Point Transmission Service are applied to quantities reserved under a Transmission Service Transaction, and do not include charges for Ancillary Services. 2.4. Network Integration Transmission Service Rates, Terms, and Conditions 2.4.1. Annual Revenue Requirement for Network Integration Transmission Service $15,533,800. 2.4.2. Monthly Revenue Requirement for Network Integration Transmission Service $1,294,483. 2.4.3. Net Capacity Available for Network Integration Transmission Service 872,000 kilowatts. 2.4.4. Monthly Capacity Charge for Network Integration Transmission Service $1.48 per kilowatt of Network Load (charge derived from $1,294,483 / 872,000 kilowatts). 2.4.5. Applicability of Charges for Network Integration Transmission Service Network Integration Transmission Service is available only for deliveries of non-Federal power and energy, and is applied to the Customer utilizing such service exclusive of any deliveries of Federal power and energy. The capacity on which charges for any particular Customer utilizing this service is determined on the greatest of (1) the highest metered demand at any particular point of delivery during a particular month, rounded up to the nearest whole megawatt, or (2) the highest metered demand recorded at such point of delivery during any of the previous 11 months, rounded up to the nearest whole megawatt. For a Customer taking Network Integration Transmission Service who is also taking delivery of Federal Power and Energy, the highest metered demand shall be determined by subtracting the energy scheduled for delivery of Federal Power and Energy for any hour from the metered demand for such hour. Secondary transmission Service for a Customer shall be limited during any month to the most recent highest metered demand on which such Customer is billed. Charges for Ancillary Services shall also be assessed. 2.4.6. Procedure for Determining SPP Open Access Transmission Tariff Network Integration Transmission Service Annual Revenue Requirement The SPP Open Access Transmission Tariff Network Integration Transmission Service Annual Revenue Requirement shall be based on the following formula which shall be calculated when a Customer transitions from a Service Agreement to an agreement for Network Integration Transmission Service under the SPP Open Access Transmission Tariff. SPP NITS ARR = Southwestern's SPP Network Integration Transmission Service Annual Revenue Requirement, which is as follows: (SPP NITS Capacity/Southwestern NITS Capacity) x Southwestern NITS ARR with the factors defined as follows: SPP NITS Capacity = The capacity on the System of Southwestern utilized for SPP Network Integration Transmission Service which shall be based on the currently approved Power Repayment Studies. Southwestern NITS Capacity = Net Capacity Available for Network Integration Transmission Service on the System of Southwestern as specified in Section 2.3.3. Southwestern NITS ARR = Southwestern's Annual Revenue Requirement for Network Integration Transmission Service as specified in Section 2.3.1. 2.5. Interconnection Facilities Service Rates, Terms, and Conditions 2.5.1. Monthly Capacity Charge for Interconnection Facilities Service $1.48 per kilowatt. 2.5.2. Applicability of Capacity Charge for Interconnection Facilities Service Any Customer that requests an interconnection from Southwestern which, in Southwestern's sole judgment and at its sole option, does not provide commensurate benefits or compensation to Southwestern for the use of its facilities shall be assessed a capacity charge for Interconnection Facilities Service. For any month, charges for Interconnection Facilities Service shall be assessed on the greater of (1) that month's actual highest metered demand, or (2) the highest metered demand recorded during the previous eleven months, as metered at the interconnection. The use of Interconnection Facilities Service will be subject to power factor provisions as specified in this Rate Schedule. The interconnection customer shall also schedule and deliver Real Power Losses pursuant to the provisions of this Rate Schedule based on metered flow through the interconnection where Interconnection Facilities Services is assessed. 2.6. Transformation Service Rates, Terms, and Conditions 2.6.1. Monthly Capacity Charge for Transformation Service $0.46 per kilowatt will be assessed for capacity used to deliver energy at any point of delivery at which Southwestern provides transformation service for deliveries at voltages of 69 kilovolts or less from higher voltage facilities. 2.6.2. Applicability of Capacity Charge for Transformation Service Unless otherwise specified by contract, for any particular month, a charge for transformation service will be assessed on the greater of (1) that month's highest metered demand, or (2) the highest metered demand recorded during the previous 11 months, at any point of delivery. For the purpose of this Rate Schedule, the highest metered demand will be based on all deliveries, of both Federal and non- Federal energy, from the System of Southwestern, at such point during such month. [[Page 44780]] 2.7. Ancillary Services Rates, Terms, and Conditions 2.7.1. Capacity Charges for Ancillary Services 2.7.1.1. Scheduling, System Control, and Dispatch Service Monthly rate of $0.09 per kilowatt of transmission capacity reserved in increments of one month of service or invoiced in accordance with a Long-Term Firm Transmission Service Agreement or Network Transmission Service Agreement. Weekly rate of $0.023 per kilowatt of transmission capacity reserved in increments of one week of service. Daily rate of $0.0041 per kilowatt of transmission capacity reserved in increments of one day of service. Hourly rate of $0.00026 per kilowatt of transmission energy delivered as non-firm transmission service. 2.7.1.2. Reactive Supply and Voltage Control from Generation Sources Service Monthly rate of $0.04 per kilowatt of transmission capacity reserved in increments of one month of service or invoiced in accordance with a Long-Term Firm Transmission Service Agreement or Network Transmission Service Agreement. Weekly rate of $0.010 per kilowatt of transmission capacity reserved in increments of one week of service. Daily rate of $0.0018 per kilowatt of transmission capacity reserved in increments of one day of service. Hourly rate of $0.00011 per kilowatt of transmission energy delivered as non-firm transmission service. 2.7.1.3. Regulation and Frequency Response Service Monthly rate of $0.07 per kilowatt of transmission capacity reserved in increments of one month of service or invoiced in accordance with a Long-Term Firm Transmission Service Agreement or Network Transmission Service Agreement plus the Regulation Purchased Adder as defined in Section 2.6.5 of this Rate Schedule. Weekly rate of $0.018 per kilowatt of transmission capacity reserved in increments of one week of service plus the Regulation Purchased Adder as defined in Section 2.6.5 of this Rate Schedule. Daily rate of $0.0032 per kilowatt of transmission capacity reserved in increments of one day of service plus the Regulation Purchased Adder as defined in Section 2.6.5 of this Rate Schedule. Hourly rate of $0.00020 per kilowatt of transmission energy delivered as non-firm transmission service plus the Regulation Purchased Adder as defined in Section 2.6.5 of this Rate Schedule. 2.7.1.4. Spinning Operating Reserve Service Monthly rate of $0.0146 per kilowatt of transmission capacity reserved in increments of one month of service or invoiced in accordance with a Long-Term Firm Transmission Service Agreement or Network Transmission Service Agreement. Weekly rate of $0.00365 per kilowatt of transmission capacity reserved in increments of one week of service. Daily rate of $0.00066 per kilowatt of transmission capacity reserved in increments of one day of service. Hourly rate of $0.00004 per kilowatt of transmission energy delivered as non-firm transmission service. 2.7.1.5. Supplemental Operating Reserve Service Monthly rate of $0.0146 per kilowatt of transmission capacity reserved in increments of one month of service or invoiced in accordance with a Long-Term Firm Transmission Service Agreement or Network Transmission Service Agreement. Weekly rate of $0.00365 per kilowatt of transmission capacity reserved in increments of one week of service. Daily rate of $0.00066 per kilowatt of transmission capacity reserved in increments of one day of service. Hourly rate of $0.00004 per kilowatt of transmission energy delivered as non-firm transmission service. 2.7.1.6. Energy Imbalance Service $0.0 per kilowatt for all reservation periods. 2.7.2. Availability of Ancillary Services Scheduling, System Control, and Dispatch Service and Reactive Supply and Voltage Control from Generation Sources Service are available for all transmission services in and from the System of Southwestern and shall be provided by Southwestern. Regulation and Frequency Response Service and Energy Imbalance Service are available only for deliveries of power and energy to load within Southwestern's Balancing Authority Area, and shall be provided by Southwestern, unless, subject to Southwestern's approval, they are provided by others. Spinning Operating Reserve Service and Supplemental Operating Reserve Service are available only for deliveries of power and energy generated by resources located within Southwestern's Balancing Authority Area and shall be provided by Southwestern, unless, subject to Southwestern's approval, they are provided by others. 2.7.3. Applicability of Charges for Ancillary Services Charges for all Ancillary Services are applied to the transmission capacity reserved or network transmission service taken by the Customer in accordance with the rates listed above when such services are provided by Southwestern. The charges for Ancillary Services are considered to include Ancillary Services for any Secondary Transmission Service, except in cases where Ancillary Services identified in Sections 2.6.1.3 through 2.6.1.6 of this Rate Schedule are applicable to a Transmission Service Transaction of Secondary Transmission Service, but are not applicable to the transmission capacity reserved under which Secondary Transmission Service is provided. When charges for Ancillary Services are applicable to Secondary Transmission Service, the charge for the Ancillary Service shall be the hourly rate applied to all energy transmitted utilizing the Secondary Transmission Service. 2.7.4. Provision of Ancillary Services by Others Customers for which Ancillary Services identified in Sections 2.6.1.3 through 2.6.1.6 of this Rate Schedule are made available as specified above must inform Southwestern by written notice of the Ancillary Services which they do not intend to take and purchase from Southwestern, and of their election to provide all or part of such Ancillary Services from their own resources or from a third party. Such notice requirements also apply to requests for Southwestern to provide Ancillary Services when such services are available as specified above. Subject to Southwestern's approval of the ability of such resources or third parties to meet Southwestern's technical and operational requirements for provision of such Ancillary Services, the Customer may change the Ancillary Services which it takes from Southwestern and/or from other sources at the beginning of any month upon the greater of 60 days written notice or upon the completion of any necessary equipment modifications necessary to accommodate such change; Provided, That, if the Customer chooses not to take Regulation and Frequency Response Service, which includes the associated Regulation Purchased Adder, the Customer must pursue these services from a different host Balancing Authority; thereby moving all metered loads and resources from Southwestern's Balancing Authority Area to the Balancing Authority Area of the new host Balancing Authority. Until such time as that meter reconfiguration is accomplished, the Customer will be charged for the Regulation and Frequency Response Service and applicable Adder then in effect. The Customer must notify Southwestern by July 1 of this choice, to be effective the subsequent calendar year. 2.7.5. Regulation Purchased Adder Southwestern has determined the amount of energy used from storage to provide Regulation and Frequency Response Service in order to meet Southwestern's Balancing Authority Area requirements. The replacement value of such energy used shall be recovered through the Regulation Purchased Adder. The Regulation Purchased Adder during the time period of January 1 through December 31 of the current calendar year is based on the average annual use of energy from storage \1\ for Regulation and Frequency Response Service and [[Page 44781]] Southwestern's estimated purchased power price for the corresponding year from the most currently approved Power Repayment Studies. \1\ The average annual use of energy from storage for Regulation and Frequency Response Service is based on Southwestern studies. --------------------------------------------------------------------------- The Regulation Purchased Adder will be phased in over a period of four (4) years as follows: ------------------------------------------------------------------------ Regulation Purchased Adder for the Incremental Replacement Year Value of Energy Used from Storage ------------------------------------------------------------------------ 2014.................................... \1/4\ of the average annual use of energy from storage x 2014 Purchased Power price. 2015.................................... \1/2\ of the average annual use of energy from storage x 2015 Purchased Power price. 2016.................................... \3/4\ of the average annual use of energy from storage x 2016 Purchased Power price. 2017 and thereafter..................... The total average annual use of energy from storage x the applicable Purchased Power price. ------------------------------------------------------------------------ 2.7.5.1. Applicability of Regulation Purchased Adder The replacement value of the estimated annual use of energy from storage for Regulation and Frequency Response Service shall be recovered by Customers located within Southwestern's Balancing Authority Area on a non-coincident peak ratio share basis, divided into twelve equal monthly payments, in accordance with the formula in Section 2.6.5.2. If the Regulation Purchased Adder is determined and applied under Southwestern's Rate Schedule P-13, then it shall not be applied here. 2.7.5.2. Procedure for Determining Regulation Purchased Adder Unless otherwise specified by contract, the Regulation Purchased Adder for an individual Customer shall be based on the following formula rate, calculated to include the replacement value of the estimated annual use of energy from storage by Southwestern for Regulation and Frequency Response Service. RPA = The Regulation Purchased Adder for an individual Customer per month, which is as follows: [(LCustomer / LTotal ) x RPTotal ] / 12 with the factors defined as follows: LCustomer = The sum in MW of the following three factors: (1) The Customer's highest metered load plus generation used to serve the Customer's load that is accounted for through a reduction in the Customer's metered load (referred to as `generation behind the meter') during the previous calendar year, and (2) The Customer's highest rate of Scheduled Exports \2\ during the previous calendar year, and (3) The Customer's highest rate of Scheduled Imports \2\ during the previous calendar year. \2\ Scheduled Exports and Scheduled Imports are transactions, such as sales and purchases respectively, which are in addition to a Customer's metered load that contribute to Southwestern's Balancing Authority Area need for regulation. --------------------------------------------------------------------------- LTotal = The sum of all LCustomer factors for all Customers that were inside Southwestern's Balancing Authority Area at the beginning of the previous calendar year in MW. RPTotal = The ``net'' cost in dollars and cents based on Southwestern's estimated purchased power price for the corresponding year from the most currently approved Power Repayment Studies multiplied by the average annual use of energy from storage, as provided for in the table in Section 2.6.5, to support Southwestern's ability to regulate within its Balancing Authority Area. The ``net'' cost in dollars and cents shall be adjusted by subtracting the product of the quantity of such average annual use of energy from storage in MWh and Southwestern's highest rate in dollars per MWh for Supplemental Peaking Energy during the previous calendar year. For Customers that have aggregated their load, resources, and scheduling into a single node by contract within Southwestern's Balancing Authority Area, the individual Customer's respective Regulation Purchased Adder shall be that Customer's ratio share of the Regulation Purchased Adder established for the node. Such ratio share shall be determined for the Customer on a non-coincident basis and shall be calculated for the Customer from their highest metered load plus generation behind the meter. 2.7.6. Energy Imbalance Service Limitations Energy Imbalance Service is authorized for use only within a bandwidth of1.5 percent of the actual requirements of the load at a particular point of delivery, for any hour, compared to the resources scheduled to meet such load during such hour. Deviations which are greater than 1.5 percent, but which are less than 2,000 kilowatts, are considered to be within the authorized bandwidth. Deviations outside the authorized bandwidth are subject to a Capacity Overrun Penalty. Energy delivered or received within the authorized bandwidth for this service is accounted for as an inadvertent flow and will be netted against flows in the future. The inadvertent flow in any given hour will only be offset with the flows in the corresponding hour of a day in the same category. Unless otherwise specified by contract, the two categories of days are weekdays and weekend days/ North American Electric Reliability Corporation holidays, and this process will result in a separate inadvertent accumulation for each hour of the two categories of days. The hourly accumulations in the current month will be added to the hourly inadvertent balances from the previous month, resulting in a month-end balance for each hour. The Customer is required to adjust the scheduling of resources in such a way as to reduce the accumulation towards zero. It is recognized that the inadvertent hourly flows can be both negative and positive, and that offsetting flows should deter a significant accumulation of inadvertent. Unless otherwise specified by contract, in the event any hourly month-end balance exceeds 12 MWhs, the excess will be subject to Section 3.1 or Section 3.2 of this Rate Schedule, depending on the direction of the accumulation. 3. Non-Federal Transmission/Interconnection Facilities Service Penalties, Terms, and Conditions 3.1. Capacity Overrun Penalty 3.1.1. Penalty Charge for Capacity Overrun For each hour during which energy flows outside the authorized bandwidth, the Customer will be obliged to purchase such energy at the following rates: ------------------------------------------------------------------------ Months Associated With Charge Rate per Kilowatt ------------------------------------------------------------------------ March, April, May, October, November, December....... $0.15 January, February, June, July, August, September..... $0.30 ------------------------------------------------------------------------ 3.1.2. Applicability of Capacity Overrun Penalty Customers who receive deliveries within Southwestern's Balancing Authority Area are obligated to provide resources sufficient to meet their loads. Such obligation is not related to the amount of transmission capacity that such Customers may have reserved for transmission service to a particular load. In the event that a Customer underschedules its resources to serve its load, resulting in a difference between [[Page 44782]] resources and actual metered load (adjusted for transformer losses as applicable) outside the authorized bandwidth for Energy Imbalance Service for any hour, then such Customer is subject to the Capacity Overrun Penalty. 3.2. Unauthorized Use of Energy Imbalance Service by Overscheduling of Resources In the event that a Customer schedules greater resources than are needed to serve its load, such that energy flows at rates beyond the authorized bandwidth for the use of Energy Imbalance Service, Southwestern retains such energy at no cost to Southwestern and with no obligation to return such energy. 3.3. Power Factor Penalty 3.3.1. Requirements Related to Power Factor Any Customer served from facilities owned by or available by contract to Southwestern will be required to maintain a power factor of not less than 95 percent and will be subject to the following provisions. 3.3.2. Determination of Power Factor The power factor will be determined for all Demand Periods and shall be calculated under the formula: [GRAPHIC] [TIFF OMITTED] TN26SE17.001 with the factors defined as follows: PF = The power factor for any Demand Period of the month. kWh = The total quantity of energy which is delivered during such Demand Period to the point of delivery or interconnection in accordance with Section 3.3.4. rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs) delivered during such Demand Period to the point of delivery or interconnection in accordance with Section 3.3.4. 3.3.3. Penalty Charge for Power Factor The Customer shall be assessed a penalty for all Demand Periods of a month where the power factor is less than 95 percent lagging. For any Demand Period during a particular month such penalty shall be in accordance with the following formula: C = D x (0.95-LPF) x $0.10 with the factors defined as follows: C = The charge in dollars to be assessed for any particular Demand Period of such month that the determination of power factor ``PF'' is calculated to be less than 95 percent lagging. D = The Customer's demand in kilowatts at the point of delivery for such Demand Period in which a low power factor was calculated. LPF = The lagging power factor, if any, determined by the formula ``PF'' for such Demand Period. If C is negative, then C = zero (0). 3.3.4. Applicability of Power Factor Penalty The Power Factor Penalty is applicable to radial interconnections with the System of Southwestern. The total Power Factor Penalty for any month shall be the sum of all charges ``C'' for all Demand Periods of such month. No penalty is assessed for leading power factor. Southwestern, in its sole judgment and at its sole option, may determine whether power factor calculations should be applied to (i) a single physical point of delivery, (ii) a combination of physical points of delivery where a Customer has a single, electrically integrated load, (iii) or interconnections. The general criteria for such decision shall be that, given the configuration of the Customer's and Southwestern's systems, Southwestern will determine, in its sole judgment and at its sole option, whether the power factor calculation more accurately assesses the detrimental impact on Southwestern's system when the above formula is calculated for a single physical point of delivery, a combination of physical points of delivery, or for an interconnection as specified by an Interconnection Agreement. Southwestern, at its sole option, may reduce or waive Power Factor Penalties when, in Southwestern's sole judgment, low power factor conditions were not detrimental to the System of Southwestern due to particular loading and voltage conditions at the time the power factor dropped below 95 percent lagging. 4. Non-Federal Transmission/Interconnection Facilities Service Miscellaneous Rates, Terms, and Conditions 4.2. Real Power Losses Customers are required to self-provide all Real Power Losses for non-Federal energy transmitted by Southwestern on behalf of such Customers under the provisions detailed below. Real Power Losses are computed as four (4) percent of the total amount of non-Federal energy transmitted by Southwestern. The Customer's monthly Real Power Losses are computed each month on a megawatthour basis as follows: ML = 0.04 x NFE with the factors defined as follows: ML = The total monthly loss energy, rounded to the nearest megawatthour, to be scheduled by a Customer for receipt by Southwestern for Real Power Losses associated with non-Federal energy transmitted on behalf of such Customer; and NFE = The amount of non-Federal energy that was transmitted by Southwestern on behalf of a Customer during a particular month. The Customer must schedule or cause to be scheduled to Southwestern, Real Power Losses for which it is responsible subject to the following conditions: 4.2.1. The Customer shall schedule and deliver Real Power Losses back to Southwestern during the second month after they were incurred by Southwestern in the transmission of the Customer's non- Federal power and energy over the System of Southwestern unless such Customer has accounted for Real Power Losses as part of a metering arrangement with Southwestern. 4.2.2. On or before the twentieth day of each month, Southwestern shall determine the amount of non-Federal loss energy it provided on behalf of the Customer during the previous month and provide a written schedule to the Customer setting forth hour-by- hour the quantities of non-Federal energy to be delivered to Southwestern as losses during the next month. 4.2.3. Real Power Losses not delivered to Southwestern by the Customer, according to the schedule provided, during the month in which such losses are due shall be billed by Southwestern to the Customer to adjust the end-of-month loss energy balance to zero (0) megawatthours and the Customer shall be obliged to purchase such energy at the following rates: ------------------------------------------------------------------------ Rate per Months Associated With Charge Kilowatthour ------------------------------------------------------------------------ March, April, May, October, November, December....... $0.15 January, February, June, July, August, September..... $0.30 ------------------------------------------------------------------------ 4.2.4. Real Power Losses delivered to Southwestern by the Customer in excess of the losses due during the month shall be purchased by Southwestern from the Customer at a rate per megawatthour equal to Southwestern's rate per megawatthour for Supplemental Peaking Energy, as set forth in Southwestern's then- effective Rate Schedule for Hydro Peaking Power to adjust such hourly end-of-month loss energy balance to zero (0) megawatthours. [[Page 44783]] UNITED STATES DEPARTMENT OF ENERGY SOUTHWESTERN POWER ADMINISTRATION RATE SCHEDULE EE-13 \1\ ** --------------------------------------------------------------------------- \1\ Supersedes Rate Schedule EE-11. ** Extended through September 30, 2019 by approval of Rate Order No. SWPA-72 by the Deputy Secretary of Energy. --------------------------------------------------------------------------- WHOLESALE RATES FOR EXCESS ENERGY Effective: During the period October 1, 2013, through September 30, 2019 **, in accordance with Federal Energy Regulatory Commission order issued January 9, 2014, Docket No. EF14-1-000. Available: In the marketing area of Southwestern Power Administration (Southwestern), described generally as the States of Arkansas, Kansas, Louisiana, Missouri, Oklahoma, and Texas. Applicable: To electric utilities which, by contract, may purchase Excess Energy from Southwestern. Character and Conditions of Service: Three-phase, alternating current, delivered at approximately 60 Hertz, at the nominal voltage(s) and at the point(s) of delivery specified by contract. 1. Wholesale Rates, Terms, and Conditions for Excess Energy Excess Energy will be furnished at such times and in such amounts as Southwestern determines to be available. 1.1. Transmission and Related Ancillary Services Transmission service for the delivery of Excess Energy shall be the sole responsibility of such customer purchasing Excess Energy. 1.2. Excess Energy Charge $0.0094 per kilowatthour of Excess Energy delivered. [FR Doc. 2017-20034 Filed 9-25-17; 8:45 am] BILLING CODE 6450-01-P
![44772 Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Notices
eSubscription link on the Web site that Rate Schedule P–13, Wholesale Rates Dated: September 13, 2017.
enables subscribers to receive email for Hydro Peaking Power Dan Brouillette,
notification when a document is added Rate Schedule NFTS–13A, Wholesale Deputy Secretary.
to a subscribed docket(s). For assistance Rates for Non-Federal Transmission UNITED STATES OF AMERICA
with any FERC Online service, please Service
email FERCOnlineSupport@ferc.gov, or DEPARTMENT OF ENERGY
Rate Schedule EE–13, Wholesale Rates
call (866) 208–3676 (toll free). For TTY, for Excess Energy DEPUTY SECRETARY
call (202) 502–8659. In the matter of: Southwestern Power
Comment Date: 5:00 p.m. Eastern time These current rate schedules for the
Administration Integrated System Rates
on October 19, 2017. Integrated System were confirmed and
approved on a final basis by the Federal Rate Order No. SWPA–72
Dated: September 19, 2017. Energy Regulatory Commission (FERC) ORDER APPROVING EXTENSION OF RATE
Kimberly D. Bose, on January 9, 2014, for the period SCHEDULES ON AN INTERIM BASIS
Secretary. October 1, 2013, through September 30, Pursuant to Sections 302(a) and 301(b) of
[FR Doc. 2017–20478 Filed 9–25–17; 8:45 am] 2017. Since initial FERC approval, a the Department of Energy Organization Act,
BILLING CODE 6717–01–P new section within rate schedule Public Law 95–91, the functions of the
NFTS–13 was added to change from a Secretary of the Interior and the Federal
stated rate to a revenue-requirement Power Commission under Section 5 of the
DEPARTMENT OF ENERGY based methodology to better align with Flood Control Act of 1944, 16 U.S.C. 825s,
practices utilized by the Southwest relating to the Southwestern Power
Southwestern Power Administration Administration (Southwestern) were
Power Pool, Inc. Regional Transmission transferred to and vested in the Secretary of
Organization. The revised rate schedule Energy. By Delegation Order No. 00–037.00B,
Integrated System Rate Schedules
NFTS–13 was designated NFTS–13A the Secretary of Energy delegated to the
AGENCY: Southwestern Power and was subsequently approved on a Administrator, Southwestern, the authority
Administration, DOE. final basis by FERC on March 9, 2017 to develop power and transmission rates,
in Docket No. EF14–1–001 (158 FERC delegated to the Deputy Secretary of Energy
ACTION: Notice of extension.
¶ 62,182) effective through September the authority to confirm, approve, and place
in effect such rates on an interim basis and
SUMMARY: The Deputy Secretary has 30, 2017.
delegated to the Federal Energy Regulatory
approved and placed into effect on an The Administrator, Southwestern, Commission (FERC) the authority to confirm
interim basis Rate Order No. SWPA–72 completed an annual review of the and approve on a final basis or to disapprove
which extends the existing rate continuing adequacy of the existing rates developed by the Administrator under
schedules for the Integrated System: hydroelectric rate schedules for the the delegation. Pursuant to that delegated
Integrated System. This review, as authority, the Deputy Secretary has issued
Rate Schedule P–13, Wholesale Rates this interim rate order.
for Hydro Peaking Power presented in the 2017 Power Repayment
Rate Schedule NFTS–13A, Wholesale Studies (PRSs), indicated the need for a BACKGROUND
Rates for Non-Federal Transmission revenue adjustment of 0.7 percent to The following rate schedules for the
Service continue to satisfy cost recovery criteria. Integrated System were confirmed and
Rate Schedule EE–13, Wholesale Rates Because the 0.7 percent revenue approved on a final basis by FERC on January
adjustment was within Southwestern’s 9, 2014, for the period October 1, 2013,
for Excess Energy
established ±2 percent rate adjustment through September 30, 2017.
This is an interim rate action effective Rate Schedule P–13, Wholesale Rates for
October 1, 2017, extending for a period threshold, the Administrator deferred
the revenue adjustment and now adopts Hydro Peaking Power
of two years through September 30, Rate Schedule NFTS–13A, Wholesale Rates
2019. the two-year extension of the Integrated Non-Federal Transmission Service
System rate schedules. Rate Schedule EE–13, Wholesale Rate for
DATES: The effective period for the rate The Administrator has followed Title Excess Energy
schedules specified in Rate Order No. 10, part 903 subpart A, of the Code of Since initial FERC approval, a new section
SWPA–72 is October 1, 2017, through Federal Regulations, ‘‘Procedures for within rate schedule NFTS–13 was added to
September 30, 2019. Public Participation in Power and change from a stated rate to a revenue-
FOR FURTHER INFORMATION CONTACT: Mr. Transmission Rate Adjustments and requirement based methodology to better
Marshall Boyken, Senior Vice President, align with practices utilized by the
Extensions’’ for the proposed extension
Southwest Power Pool, Inc. Regional
Chief Operating Office, Office of to the rate schedules. The public was Transmission Organization. The revised rate
Corporate Operations, Southwestern advised by notice published in the schedule NFTS–13 was designated NFTS–
Power Administration, U.S. Department Federal Register (82 FR 27062), June 13, 13A and was subsequently approved on a
of Energy, One West Third Street, Tulsa, 2017, of the proposed extension of the final basis by FERC on March 9, 2017 in
Oklahoma 74103, (918) 595–6646, rate schedules and of the opportunity to Docket No. EF14–1–001 (158 FERC ¶ 62,182)
marshall.boyken@swpa.gov or facsimile provide written comments for a period effective through September 30, 2017.
transmission (918) 595–6646. of 30 days ending July 13, 2017. No Southwestern followed Title 10 Part 903 of
the Code of Federal Regulations, ‘‘Procedures
SUPPLEMENTARY INFORMATION: Pursuant comments were received. for Public Participation in Power and
to Delegation Order Nos. 00–037.00B, Information regarding the extension of Transmission Rate Adjustments and
effective November 19, 2016, and 00– these rate schedules, including the rate Extensions’’ (Part 903) for the proposed
001.00F, effective November 17, 2014, schedules and other supporting extension of the rate schedules. An
and pursuant to the implementation material, is available for public review opportunity for customers and other
authorities in 10 CFR 903.22(h) and in the offices of Southwestern Power interested members of the public to review
and comment on the proposed extension of
903.23(a)(3), Rate Order No. SWPA–72 Administration, Williams Tower I, One the rate schedules was announced by notice
is approved and placed into effect on an West Third Street, Tulsa, Oklahoma published in the Federal Register on June 13,
interim basis for the period October 1, 74103. I have reviewed the 2017, (82 FR 27062), with written comments
2017, through September 30, 2019, for Southwestern proposal and I approve due by July 13, 2017. No comments were
the following rate schedules: Rate Order No. SWPA–72. received.
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![Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Notices 44781
Southwestern’s estimated purchased power most currently approved Power Repayment The Regulation Purchased Adder will be
price for the corresponding year from the Studies. phased in over a period of four (4) years as
follows:
Regulation Purchased Adder for the Incremental Replacement Value
Year of Energy Used from Storage
2014 ............................... ⁄ of the
14 average annual use of energy from storage × 2014 Purchased Power price.
2015 ............................... ⁄ of the
12 average annual use of energy from storage × 2015 Purchased Power price.
2016 ............................... ⁄ of the
34 average annual use of energy from storage × 2016 Purchased Power price.
2017 and thereafter ....... The total average annual use of energy from storage × the applicable Purchased Power price.
2.7.5.1. Applicability of Regulation year. bandwidth. Deviations outside the
Purchased Adder L Total = The sum of all L Customer factors for authorized bandwidth are subject to a
The replacement value of the estimated all Customers that were inside Capacity Overrun Penalty.
annual use of energy from storage for Southwestern’s Balancing Authority Energy delivered or received within the
Regulation and Frequency Response Service Area at the beginning of the previous authorized bandwidth for this service is
shall be recovered by Customers located calendar year in MW. accounted for as an inadvertent flow and will
RP Total = The ‘‘net’’ cost in dollars and cents be netted against flows in the future. The
within Southwestern’s Balancing Authority
based on Southwestern’s estimated inadvertent flow in any given hour will only
Area on a non-coincident peak ratio share
purchased power price for the be offset with the flows in the corresponding
basis, divided into twelve equal monthly
corresponding year from the most hour of a day in the same category. Unless
payments, in accordance with the formula in
currently approved Power Repayment otherwise specified by contract, the two
Section 2.6.5.2.
Studies multiplied by the average annual categories of days are weekdays and weekend
If the Regulation Purchased Adder is use of energy from storage, as provided days/North American Electric Reliability
determined and applied under for in the table in Section 2.6.5, to Corporation holidays, and this process will
Southwestern’s Rate Schedule P–13, then it support Southwestern’s ability to result in a separate inadvertent accumulation
shall not be applied here. regulate within its Balancing Authority for each hour of the two categories of days.
2.7.5.2. Procedure for Determining Area. The ‘‘net’’ cost in dollars and cents The hourly accumulations in the current
Regulation Purchased Adder shall be adjusted by subtracting the month will be added to the hourly
product of the quantity of such average inadvertent balances from the previous
Unless otherwise specified by contract, the annual use of energy from storage in
Regulation Purchased Adder for an month, resulting in a month-end balance for
MWh and Southwestern’s highest rate in each hour.
individual Customer shall be based on the dollars per MWh for Supplemental
following formula rate, calculated to include The Customer is required to adjust the
Peaking Energy during the previous
the replacement value of the estimated scheduling of resources in such a way as to
calendar year.
annual use of energy from storage by reduce the accumulation towards zero. It is
For Customers that have aggregated their recognized that the inadvertent hourly flows
Southwestern for Regulation and Frequency
load, resources, and scheduling into a single can be both negative and positive, and that
Response Service. node by contract within Southwestern’s offsetting flows should deter a significant
RPA = The Regulation Purchased Adder for Balancing Authority Area, the individual accumulation of inadvertent. Unless
an individual Customer per month, Customer’s respective Regulation Purchased otherwise specified by contract, in the event
which is as follows: Adder shall be that Customer’s ratio share of any hourly month-end balance exceeds 12
[(L Customer ÷ L Total) × RP Total ] ÷ 12 the Regulation Purchased Adder established MWhs, the excess will be subject to Section
with the factors defined as follows: for the node. Such ratio share shall be 3.1 or Section 3.2 of this Rate Schedule,
determined for the Customer on a non- depending on the direction of the
L Customer = The sum in MW of the following
coincident basis and shall be calculated for accumulation.
three factors:
the Customer from their highest metered load
(1) The Customer’s highest metered load plus plus generation behind the meter. 3.
generation used to serve the Customer’s
load that is accounted for through a 2.7.6. Energy Imbalance Service Limitations Non-Federal Transmission/Interconnection
reduction in the Customer’s metered Facilities Service Penalties, Terms, and
Energy Imbalance Service is authorized for
Conditions
load (referred to as ‘generation behind use only within a bandwidth of ± 1.5 percent
the meter’) during the previous calendar of the actual requirements of the load at a 3.1. Capacity Overrun Penalty
year, and particular point of delivery, for any hour,
(2) The Customer’s highest rate of Scheduled compared to the resources scheduled to meet 3.1.1. Penalty Charge for Capacity Overrun
Exports 2 during the previous calendar such load during such hour. Deviations For each hour during which energy flows
year, and which are greater than ± 1.5 percent, but outside the authorized bandwidth, the
(3) The Customer’s highest rate of Scheduled which are less than ± 2,000 kilowatts, are Customer will be obliged to purchase such
Imports 2 during the previous calendar considered to be within the authorized energy at the following rates:
Months Associated With Charge Rate per Kilowatt
March, April, May, October, November, December ...................................................................................................................... $0.15
January, February, June, July, August, September ...................................................................................................................... $0.30
3.1.2. Applicability of Capacity Overrun obligated to provide resources sufficient to reserved for transmission service to a
Penalty meet their loads. Such obligation is not particular load. In the event that a Customer
Customers who receive deliveries within related to the amount of transmission underschedules its resources to serve its
Southwestern’s Balancing Authority Area are capacity that such Customers may have load, resulting in a difference between
2 Scheduled Exports and Scheduled Imports are respectively, which are in addition to a Customer’s metered load that contribute to Southwestern’s
transactions, such as sales and purchases Balancing Authority Area need for regulation.
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![Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Notices 44783
UNITED STATES DEPARTMENT OF EPA engages with industry in order to Dated: September 14, 2017.
ENERGY reduce unnecessary regulatory burden, Samantha K. Dravis,
SOUTHWESTERN POWER create certainty and predictability, and Associate Administrator for Policy.
ADMINISTRATION improve the ability of both EPA and [FR Doc. 2017–20310 Filed 9–25–17; 8:45 am]
RATE SCHEDULE EE–13 1 ** industry to conduct long-term BILLING CODE 6560–50–P
regulatory planning while also
WHOLESALE RATES FOR EXCESS protecting the environment and public
ENERGY ENVIRONMENTAL PROTECTION
health.
Effective: AGENCY
FOR FURTHER INFORMATION CONTACT:
During the period October 1, 2013, through [FRL–9968–08–OLEM]
September 30, 2019 **, in accordance with Daisy Letendre, Senior Advisor for
Federal Energy Regulatory Commission order Policy and Strategic Communications, Access to Confidential Business
issued January 9, 2014, Docket No. EF14–1– Office of Policy, Office of Administrator, Information by Eastern Research
000. Environmental Protection Agency, Mail Group (ERG)
Available: Code: 1104A, 1200 Pennsylvania Ave.
NW., Washington, DC 200460; AGENCY: Environmental Protection
In the marketing area of Southwestern Power Agency (EPA).
Administration (Southwestern), described telephone number: (202) 564–0410;
generally as the States of Arkansas, Kansas, email address: sectors@epa.gov. ACTION: Notice of access to data and
Louisiana, Missouri, Oklahoma, and Texas. request for comments.
SUPPLEMENTARY INFORMATION:
Applicable: SUMMARY: EPA will authorize its
General Information contractor, Eastern Research Group
To electric utilities which, by contract, may
purchase Excess Energy from Southwestern. EPA has initially identified the (ERG) to access Confidential Business
Information (CBI) which has been
Character and Conditions of Service: following sectors to work with:
submitted to EPA under the authority of
Three-phase, alternating current, delivered at Aerospace; agriculture; automotive;
all sections of the Resource
approximately 60 Hertz, at the nominal cement and concrete; chemical
Conservation and Recovery Act (RCRA)
voltage(s) and at the point(s) of delivery manufacturing; construction; electronics
specified by contract. of 1976, as amended. EPA has issued
and technology; iron and steel; oil and regulations that outline business
1. gas; ports and shipping; and utilities confidentiality provisions for the
and power generation. Sectors were Agency and require all EPA Offices that
Wholesale Rates, Terms, and Conditions for
Excess Energy selected based on each sector’s potential receive information designated by the
to improve the environment and public submitter as CBI to abide by these
Excess Energy will be furnished at such times
and in such amounts as Southwestern health. EPA welcomes participation provisions.
determines to be available. from other stakeholders.
DATES: Access to confidential data
1.1. Transmission and Related Ancillary The Smart Sectors program will submitted to EPA will occur no sooner
Services designate staff-level points of contact than October 6, 2017.
Transmission service for the delivery of who are highly knowledgeable about FOR FURTHER INFORMATION CONTACT:
Excess Energy shall be the sole responsibility specific industries. These individuals LaShan Haynes, Document Control
of such customer purchasing Excess Energy. will act as liaisons among industry trade Officer, Office of Resource Conservation
1.2. Excess Energy Charge associations and companies, EPA and Recovery, (5305P), U.S.
program and regional offices, state and Environmental Protection Agency, 1200
$0.0094 per kilowatthour of Excess Energy
delivered.
local governments, and other Pennsylvania Avenue NW., Washington,
stakeholder groups. The sector liaisons DC 20460, 703–605–0516.
[FR Doc. 2017–20034 Filed 9–25–17; 8:45 am]
will focus their attention primarily on SUPPLEMENTARY INFORMATION:
BILLING CODE 6450–01–P
three main areas: Building relationships
1. Access to Confidential Business
and improving customer service to
Information
sectors; developing additional expertise
ENVIRONMENTAL PROTECTION in each industry’s operations and Under EPA Contract EP–W–10–055,
AGENCY environmental performance; and entitled ‘‘Advancing SMM: Waste Facts
[FRL–9968–18–OP] informing the planning of future and Figures and Related Tasks,’’ the
policies, regulations, and Agency Eastern Research Group (ERG) will
EPA Smart Sectors Program Launch processes. assist the Office of Resource
Conservation and Recovery, Resource
AGENCY: Environmental Protection EPA anticipates that participating Conservation and Sustainability
Agency (EPA). industries will benefit from coordinated, Division in collecting and analyzing
ACTION: Notice. cooperative, and constructive problem- municipal solid waste (MSW)
solving with government. The Agency information. The contract addresses
SUMMARY: The U.S. Environmental will invite participating industries to MSW and other waste such as
Protection Agency (EPA) is announcing engage in active dialogue and offer their construction and demolition debris,
the Smart Sectors program in the Office own innovative ideas to reduce however, the confidential business
of Policy. Based on the successful EPA environmental impacts. Because information (CBI) only relates to the
Sector Strategies program, EPA’s Smart industry-wide environmental MSW information collected and
Sectors program will re-examine how performance improvement is the goal, analyzed in the contract. The contract
1 Supersedes
EPA will work with trade associations period is from August 2017–February
Rate Schedule EE–11.
** Extended through September 30, 2019 by
and others to find creative ways to 28, 2018. Some of the data collected
approval of Rate Order No. SWPA–72 by the Deputy document environmental progress and from industry are claimed by industry to
Secretary of Energy. burden reductions. contain trade secrets or CBI. In
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Document Created: 2017-09-26 02:48:18
Document Modified: 2017-09-26 02:48:18
| 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 extension. | |
| Dates | The effective period for the rate schedules specified in Rate Order No. SWPA-72 is October 1, 2017, through September 30, 2019. | |
| Contact | Mr. Marshall Boyken, Senior Vice President, Chief Operating Office, Office of Corporate Operations, Southwestern Power Administration, U.S. Department of Energy, One West Third Street, Tulsa, Oklahoma 74103, (918) 595-6646, [email protected] or facsimile transmission (918) 595-6646. | |
| FR Citation | 82 FR 44772 |
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