82 FR 47506 - Proposed Olmsted Project Rate Order No. WAPA-177
DEPARTMENT OF ENERGY
Western Area Power Administration Federal Register Volume 82, Issue 196 (October 12, 2017)
Western Area Power Administration
Federal Register Volume 82, Issue 196 (October 12, 2017)
| Page Range | 47506-47507 | |
| FR Document | 2017-21936 |
[Federal Register Volume 82, Number 196 (Thursday, October 12, 2017)] [Notices] [Pages 47506-47507] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-21936] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Western Area Power Administration Proposed Olmsted Project Rate Order No. WAPA-177 AGENCY: Western Area Power Administration, DOE. ACTION: Notice of Proposed Power Formula Rate. ----------------------------------------------------------------------- SUMMARY: The United States Department of Energy, Western Area Power Administration (WAPA), Colorado River Storage Project Management Center (CRSP MC), is proposing a new power formula rate for the Olmsted Hydroelectric Powerplant Replacement Project (Olmsted). There is no existing rate for Olmsted; therefore, the CRSP MC is proposing a new formula, under Rate Schedule Olmsted F-1, that will be used to determine the annual energy charge. WAPA will provide a brochure detailing information about the proposed formula rate prior to the public information forum and will post it to the Olmsted rate action Web site at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx. If approved, the proposed formula rate under Rate Schedule Olmsted F-1 would become effective on April 1, 2018, and remain in effect through March 31, 2023, or until superseded. Publication of this Federal Register notice begins the formal process for the proposed formula rate. DATES: The consultation and comment period will begin October 12, 2017 and end January 10, 2018. WAPA will present a detailed explanation about the proposed rate at a public information forum on November 17, 2017, at 10 a.m. MDT in Salt Lake City, Utah. WAPA will accept oral and written comments at a public comment forum on November 17, 2017, immediately following the conclusion of the public information forum. WAPA will accept written comments any time during the 90-day consultation and comment period. ADDRESSES: The public information forum and the public comment forum will be held at the new Colorado River Storage Project Management Center, Western Area Power Administration, 299 South Main Street, Suite 200, Salt Lake City, UT 84111. Written comments and requests to be informed about the Federal Energy Regulatory Commission's (FERC) actions concerning the rates submitted by WAPA to FERC for approval should be sent to: Ms. Lynn C. Jeka, CRSP Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City, UT 84111, email jeka@wapa.gov. The Colorado River Storage Project Management Center is scheduled to relocate to the new address in October 2017. WAPA will post the new mailing address and the date of the move, as well as information about the rate process, on WAPA's Web site at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx. WAPA will post official comments received via letter and email to this Web site after the close of the comment period. Written comments must be received by the end of the consultation and comment period to be considered in WAPA's decision process. Access to WAPA's facility is controlled; therefore, any U.S. citizen wanting to attend these forums must present an official form of picture identification such as a U.S. driver's license, U.S. passport, U.S. Government ID, or U.S. Military ID at the time of the forums. Foreign nationals planning to attend should contact WAPA 30 days in advance of the forums to allow sufficient time to arrange admittance. FOR FURTHER INFORMATION CONTACT: Mr. Thomas Hackett, CRSP Rates Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City, UT 84111, (801) 524-5503 or email hackett@wapa.gov. SUPPLEMENTARY INFORMATION: The existing Olmsted Powerplant, located in northern Utah, is over 100 years old and was acquired from PacifiCorp in condemnation proceedings by the United States in 1990. As part of the condemnation proceedings, PacifiCorp continued Olmsted operations until 2015 after which time the operation of the facility became the responsibility of the Department of the Interior. As agreed upon in an implementation agreement executed February 4, 2015, among the Central Utah Water Conservancy District (District); Department of the Interior (Interior), Bureau of Reclamation (Reclamation); and WAPA, the District is currently constructing a replacement facility for power generation and will operate and maintain the Olmsted facilities in connection with its Central Utah Project operations. Non-reimbursable funding for Olmsted has largely been contributed by the District, Interior, and the Upper Basin States. Funds available under Section 5(c) of the Colorado River Storage Project Act were made available for Olmsted, and these funds are considered a reimbursable Federal investment to be repaid by power revenues. Interior will continue to own the Olmsted Powerplant, and commercial operation is anticipated to begin July 1, 2018. WAPA will market an energy-only product as no capacity will be available to market from Olmsted. Power production will be non-dispatchable and incidental to the delivery of water. It is expected that annual energy production will average approximately 27,000,000 kWh per year. It is proposed that each customer which receives an allocation from Olmsted will pay its proportional share of the amortized portion of the reimbursable investment in Olmsted, with interest, and the associated operation, maintenance, and replacement (OM&R) costs in return for its proportional share of total marketable energy production. This repayment schedule does not depend upon the energy made available for sale or the amount of generation each year. Customers are to pay reimbursable investment as well as the OM&R costs of Olmsted and, in return, will receive all of the energy produced. Each fiscal year (FY) WAPA will estimate the Olmsted expenses by preparing a power repayment study, which will include estimates of the reimbursable investment costs, including interest, and OM&R. To date, all investments are accounted for as Construction in Progress (CIP) costs and have not been transferred to plant accounts for capitalization. Once transferred, an amortization schedule will be calculated for repayment. Historical financial data are only available through FY 2016, and [[Page 47507]] projections are based on the FY 2019 Reclamation and WAPA work plans received in April 2017 as indicated in Table 1. WAPA will post updates to these projections on the Web site as data become available. Table 1--Actual & Projected Investment and OM&R Costs Requiring Repayment -------------------------------------------------------------------------------------------------------------------------------------------------------- FY 2015 2016 2017 2018 2019 2020 2021 2022 -------------------------------------------------------------------------------------------------------------------------------------------------------- Reimbursable CIP........................................ .......... $5,800,000 Olmsted O&M............................................. $160,000 10,000 $10,000 $10,000 $140,000 $751,300 $561,352 $281,800 WAPA O&M................................................ .......... .......... 9,500 10,000 10,500 11,000 11,000 11,500 ----------------------------------------------------------------------------------------------- FY Totals........................................... 160,000 5,810,000 19,500 20,000 150,500 762,300 572,352 293,300 -------------------------------------------------------------------------------------------------------------------------------------------------------- WAPA will provide the Olmsted power customers with the initial installment information at least 30 days prior to initiation of service. Service is expected to begin July 1, 2018, or as soon as Olmsted is declared commercially operable. The FY 2018 annual installment will include all actual and projected OM&R costs requiring repayment through FY 2018 in addition to amortized payments on capital investments plus interest. The FY 2018 installment amount will be divided by the number of months of service, which is anticipated to be 3 months. Thereafter, the annual installment amount, in 12 monthly payments, will be established in advance by WAPA and submitted to the Olmsted power customers on or before August 31 prior to the new FY. The calculation of the annual installment will include adjustments between estimated and actual costs included in preceding installments. If costs in the preceding installment are underestimated, an amount equal to the difference will be added to the next annual installment. Conversely, if costs in the preceding installment are overestimated, the amount would be deducted from the next installment. Legal Authority The proposed formula rate constitutes a major rate adjustment as defined by 10 CFR 903.2(e); therefore, WAPA will hold both a public information forum and a public comment forum for this formula rate proposal under 10 CFR 903.15 and 903.16. WAPA will review all timely public comments and will make amendments or adjustments to the proposal, as appropriate. The final formula rate will be forwarded to the Deputy Secretary of Energy for approval on an interim basis. WAPA is establishing an electric service formula rate for Olmsted under the DOE Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)); the CRSP Act of 1956 (43 U.S.C. 620); and other acts that specifically apply to the project involved. By Delegation Order No. 00-037.00B, effective November 19, 2016, the Secretary of Energy delegated: (1) The authority to develop power and transmission rates to WAPA's Administrator, (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy, and (3) the authority to confirm, approve, and place into effect on a final basis, to remand, or to disapprove such rates to FERC. Existing DOE procedures for public participation in power rate adjustments (10 CFR 903) were published on September 18, 1985 (50 FR 87835). Availability of Information All studies, comments, letters, memorandums, or other documents that WAPA initiates or uses to develop the proposed rates are available for inspection and copying at the Colorado River Storage Project Management Center, Western Area Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City, UT. WAPA is scheduled to relocate to a new address in October 2017. In addition to being available at the new address, WAPA will post information about the rate process on WAPA's Web site at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx. Ratemaking Procedure Requirements Environmental Compliance The U.S. Department of the Interior, Central Utah Project Completion Act Office, and the Central Utah Water Conservancy District completed an Environmental Assessment (EA) on the Olmsted Hydroelectric Powerplant Replacement Project. These agencies issued a Finding Of No Significant Impact (FONSI) on the EA. This action was signed January 16, 2015. WAPA adopted the EA and FONSI for its action of marketing the output from the Olmsted Powerplant. This rate action is an action included as part of marketing of the Olmsted Powerplant generation. Determination Under Executive Order 12866 WAPA has an exemption from centralized regulatory review under Executive Order 12866. Accordingly, no clearance of this notice by the Office of Management and Budget is required. Dated: September 5, 2017. Mark A. Gabriel, Administrator. [FR Doc. 2017-21936 Filed 10-11-17; 8:45 am] BILLING CODE 6450-01-P
![47506 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices
Environmental Compliance forum on November 17, 2017, at 10 a.m. United States in 1990. As part of the
In compliance with the National MDT in Salt Lake City, Utah. WAPA condemnation proceedings, PacifiCorp
Environmental Policy Act (NEPA) of will accept oral and written comments continued Olmsted operations until
1969 (42 U.S.C. 4321–4347), Council on at a public comment forum on 2015 after which time the operation of
Environmental Quality Regulations (40 November 17, 2017, immediately the facility became the responsibility of
CFR parts 1500–1508), and DOE NEPA following the conclusion of the public the Department of the Interior. As
Regulations (10 CFR part 1021), WAPA information forum. WAPA will accept agreed upon in an implementation
is in the process of determining whether written comments any time during the agreement executed February 4, 2015,
90-day consultation and comment among the Central Utah Water
an environmental assessment or an
period. Conservancy District (District);
environmental impact statement should
ADDRESSES: The public information Department of the Interior (Interior),
be prepared or if this action can be
forum and the public comment forum Bureau of Reclamation (Reclamation);
categorically excluded from those
will be held at the new Colorado River and WAPA, the District is currently
requirements. Further environmental
Storage Project Management Center, constructing a replacement facility for
review actions will be posted to the
Western Area Power Administration, power generation and will operate and
RMR and CRSP MC Web sites
299 South Main Street, Suite 200, Salt maintain the Olmsted facilities in
referenced in the SUPPLEMENTARY
Lake City, UT 84111. Written comments connection with its Central Utah Project
INFORMATION section.
and requests to be informed about the operations.
Dated: September 21, 2017.
Federal Energy Regulatory Non-reimbursable funding for
Mark A. Gabriel, Commission’s (FERC) actions Olmsted has largely been contributed by
Administrator. concerning the rates submitted by the District, Interior, and the Upper
[FR Doc. 2017–21938 Filed 10–11–17; 8:45 am] WAPA to FERC for approval should be Basin States. Funds available under
BILLING CODE 6450–01–P sent to: Ms. Lynn C. Jeka, CRSP Section 5(c) of the Colorado River
Manager, Colorado River Storage Project Storage Project Act were made available
Management Center, Western Area for Olmsted, and these funds are
DEPARTMENT OF ENERGY Power Administration, 150 East Social considered a reimbursable Federal
Hall Avenue, Suite 300, Salt Lake City, investment to be repaid by power
Western Area Power Administration UT 84111, email jeka@wapa.gov. The revenues. Interior will continue to own
Colorado River Storage Project the Olmsted Powerplant, and
Proposed Olmsted Project Rate Order commercial operation is anticipated to
Management Center is scheduled to
No. WAPA–177 begin July 1, 2018. WAPA will market
relocate to the new address in October
2017. WAPA will post the new mailing an energy-only product as no capacity
AGENCY: Western Area Power
address and the date of the move, as will be available to market from
Administration, DOE.
well as information about the rate Olmsted. Power production will be non-
ACTION: Notice of Proposed Power dispatchable and incidental to the
Formula Rate. process, on WAPA’s Web site at https://
delivery of water. It is expected that
www.wapa.gov/regions/CRSP/rates/
SUMMARY: The United States Department annual energy production will average
Pages/rate-order-177.aspx.
WAPA will post official comments approximately 27,000,000 kWh per year.
of Energy, Western Area Power
It is proposed that each customer
Administration (WAPA), Colorado River received via letter and email to this Web
which receives an allocation from
Storage Project Management Center site after the close of the comment
Olmsted will pay its proportional share
(CRSP MC), is proposing a new power period. Written comments must be
of the amortized portion of the
formula rate for the Olmsted received by the end of the consultation
reimbursable investment in Olmsted,
Hydroelectric Powerplant Replacement and comment period to be considered in
with interest, and the associated
Project (Olmsted). There is no existing WAPA’s decision process. Access to
operation, maintenance, and
rate for Olmsted; therefore, the CRSP WAPA’s facility is controlled; therefore,
replacement (OM&R) costs in return for
MC is proposing a new formula, under any U.S. citizen wanting to attend these its proportional share of total
Rate Schedule Olmsted F–1, that will be forums must present an official form of marketable energy production. This
used to determine the annual energy picture identification such as a U.S. repayment schedule does not depend
charge. WAPA will provide a brochure driver’s license, U.S. passport, U.S. upon the energy made available for sale
detailing information about the Government ID, or U.S. Military ID at or the amount of generation each year.
proposed formula rate prior to the the time of the forums. Foreign Customers are to pay reimbursable
public information forum and will post nationals planning to attend should investment as well as the OM&R costs
it to the Olmsted rate action Web site at contact WAPA 30 days in advance of of Olmsted and, in return, will receive
https://www.wapa.gov/regions/CRSP/ the forums to allow sufficient time to all of the energy produced. Each fiscal
rates/Pages/rate-order-177.aspx. If arrange admittance. year (FY) WAPA will estimate the
approved, the proposed formula rate FOR FURTHER INFORMATION CONTACT: Mr. Olmsted expenses by preparing a power
under Rate Schedule Olmsted F–1 Thomas Hackett, CRSP Rates Manager, repayment study, which will include
would become effective on April 1, Colorado River Storage Project estimates of the reimbursable
2018, and remain in effect through Management Center, Western Area investment costs, including interest, and
March 31, 2023, or until superseded. Power Administration, 150 East Social
asabaliauskas on DSKBBXCHB2PROD with NOTICES
OM&R.
Publication of this Federal Register Hall Avenue, Suite 300, Salt Lake City, To date, all investments are accounted
notice begins the formal process for the UT 84111, (801) 524–5503 or email for as Construction in Progress (CIP)
proposed formula rate. hackett@wapa.gov. costs and have not been transferred to
DATES: The consultation and comment SUPPLEMENTARY INFORMATION: The plant accounts for capitalization. Once
period will begin October 12, 2017 and existing Olmsted Powerplant, located in transferred, an amortization schedule
end January 10, 2018. WAPA will northern Utah, is over 100 years old and will be calculated for repayment.
present a detailed explanation about the was acquired from PacifiCorp in Historical financial data are only
proposed rate at a public information condemnation proceedings by the available through FY 2016, and
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![Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 47507
projections are based on the FY 2019 received in April 2017 as indicated in these projections on the Web site as data
Reclamation and WAPA work plans Table 1. WAPA will post updates to become available.
TABLE 1—ACTUAL & PROJECTED INVESTMENT AND OM&R COSTS REQUIRING REPAYMENT
FY 2015 2016 2017 2018 2019 2020 2021 2022
Reimbursable CIP ............................ .................. $5,800,000
Olmsted O&M .................................. $160,000 10,000 $10,000 $10,000 $140,000 $751,300 $561,352 $281,800
WAPA O&M ..................................... .................. .................. 9,500 10,000 10,500 11,000 11,000 11,500
FY Totals .................................. 160,000 5,810,000 19,500 20,000 150,500 762,300 572,352 293,300
WAPA will provide the Olmsted U.S.C. 485h(c)); the CRSP Act of 1956 an action included as part of marketing
power customers with the initial (43 U.S.C. 620); and other acts that of the Olmsted Powerplant generation.
installment information at least 30 days specifically apply to the project
Determination Under Executive Order
prior to initiation of service. Service is involved.
12866
expected to begin July 1, 2018, or as By Delegation Order No. 00–037.00B,
soon as Olmsted is declared effective November 19, 2016, the WAPA has an exemption from
commercially operable. The FY 2018 Secretary of Energy delegated: (1) The centralized regulatory review under
annual installment will include all authority to develop power and Executive Order 12866. Accordingly, no
actual and projected OM&R costs transmission rates to WAPA’s clearance of this notice by the Office of
requiring repayment through FY 2018 in Administrator, (2) the authority to Management and Budget is required.
addition to amortized payments on confirm, approve, and place such rates Dated: September 5, 2017.
capital investments plus interest. The into effect on an interim basis to the Mark A. Gabriel,
FY 2018 installment amount will be Deputy Secretary of Energy, and (3) the Administrator.
divided by the number of months of authority to confirm, approve, and place [FR Doc. 2017–21936 Filed 10–11–17; 8:45 am]
service, which is anticipated to be 3 into effect on a final basis, to remand, BILLING CODE 6450–01–P
months. Thereafter, the annual or to disapprove such rates to FERC.
installment amount, in 12 monthly Existing DOE procedures for public
payments, will be established in participation in power rate adjustments
advance by WAPA and submitted to the (10 CFR 903) were published on ENVIRONMENTAL PROTECTION
Olmsted power customers on or before September 18, 1985 (50 FR 87835). AGENCY
August 31 prior to the new FY.
Availability of Information [EPA–HQ–OW–2016–0438; FRL–9969–49–
The calculation of the annual OW]
installment will include adjustments All studies, comments, letters,
between estimated and actual costs memorandums, or other documents that Notice of Extension to Comment
included in preceding installments. If WAPA initiates or uses to develop the Period on the Request for Public
costs in the preceding installment are proposed rates are available for Comments To Be Sent to EPA on Peer
underestimated, an amount equal to the inspection and copying at the Colorado Review Materials To Inform the Safe
difference will be added to the next River Storage Project Management Drinking Water Act Decision Making on
annual installment. Conversely, if costs Center, Western Area Power Perchlorate
in the preceding installment are Administration, 150 East Social Hall
overestimated, the amount would be AGENCY: Environmental Protection
Avenue, Suite 300, Salt Lake City, UT.
deducted from the next installment. Agency (EPA).
WAPA is scheduled to relocate to a new
address in October 2017. In addition to ACTION: Notice; extension of comment
Legal Authority
being available at the new address, period.
The proposed formula rate constitutes WAPA will post information about the
a major rate adjustment as defined by 10 SUMMARY: The U.S. Environmental
rate process on WAPA’s Web site at Protection Agency (EPA) is extending
CFR 903.2(e); therefore, WAPA will https://www.wapa.gov/regions/CRSP/
hold both a public information forum the comment period for the notice,
rates/Pages/rate-order-177.aspx. ‘‘Request for Public Comments To Be
and a public comment forum for this
formula rate proposal under 10 CFR Ratemaking Procedure Requirements Sent to EPA on Peer Review Materials
903.15 and 903.16. WAPA will review To Inform the Safe Drinking Water Act
Environmental Compliance Decision Making on Perchlorate.’’ In
all timely public comments and will
make amendments or adjustments to the The U.S. Department of the Interior, response to stakeholder requests, EPA is
proposal, as appropriate. The final Central Utah Project Completion Act extending the comment period for the
formula rate will be forwarded to the Office, and the Central Utah Water ‘‘Draft Report: Proposed Approaches To
Deputy Secretary of Energy for approval Conservancy District completed an Inform the Derivation of a Maximum
Contaminant Level Goal for Perchlorate
asabaliauskas on DSKBBXCHB2PROD with NOTICES
on an interim basis. Environmental Assessment (EA) on the
WAPA is establishing an electric Olmsted Hydroelectric Powerplant in Drinking Water’’ (draft MCLG
service formula rate for Olmsted under Replacement Project. These agencies Approaches Report)’’ an additional 21
the DOE Organization Act (42 U.S.C. issued a Finding Of No Significant days, from October 30, 2017, to
7152); the Reclamation Act of 1902 (ch. Impact (FONSI) on the EA. This action November 20, 2017.
1093, 32 Stat. 388), as amended and was signed January 16, 2015. WAPA DATES: The comment period announced
supplemented by subsequent laws, adopted the EA and FONSI for its action in the notice that was published on
particularly section 9(c) of the of marketing the output from the September 15, 2017 (82 FR 43354) is
Reclamation Project Act of 1939 (43 Olmsted Powerplant. This rate action is extended. Comments must now be
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Document Created: 2018-10-25 10:04:02
Document Modified: 2018-10-25 10:04:02
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice of Proposed Power Formula Rate. | |
| Dates | The consultation and comment period will begin October 12, 2017 and end January 10, 2018. WAPA will present a detailed explanation about the proposed rate at a public information forum on November 17, 2017, at 10 a.m. MDT in Salt Lake City, Utah. WAPA will accept oral and written comments at a public comment forum on November 17, 2017, immediately following the conclusion of the public information forum. WAPA will accept written comments any time during the 90-day consultation and comment period. | |
| Contact | Mr. Thomas Hackett, CRSP Rates Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 150 East Social Hall Avenue, Suite 300, Salt Lake City, UT 84111, (801) 524-5503 or email [email protected] | |
| FR Citation | 82 FR 47506 |
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