82_FR_57976 82 FR 57742 - Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-180

82 FR 57742 - Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-180

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 82, Issue 234 (December 7, 2017)

Page Range57742-57750
FR Document2017-26376

The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA-180 and Rate Schedules P-SED-F13, P-SED-FP13, and P-SED- M1 for firm power service, firm peaking power service, and a new formula rate for sale of surplus products for the Western Area Power Administration (WAPA) Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--ED) into effect on an interim basis (Provisional Formula Rates).

Federal Register, Volume 82 Issue 234 (Thursday, December 7, 2017)
[Federal Register Volume 82, Number 234 (Thursday, December 7, 2017)]
[Notices]
[Pages 57742-57750]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26376]


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DEPARTMENT OF ENERGY

Western Area Power Administration


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

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of order concerning firm power, firm peaking power, and 
sale of surplus product formula rates.

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SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate 
Order No. WAPA-180 and Rate Schedules P-SED-F13, P-SED-FP13, and P-SED-
M1 for firm power service, firm peaking power service, and a new 
formula rate for sale of surplus products for the Western Area Power 
Administration (WAPA) Pick-Sloan Missouri Basin Program--Eastern 
Division (P-SMBP--ED) into effect on an interim basis (Provisional 
Formula Rates).

DATES: The Rate Schedules P-SED-F13, P-SED-FP13, and P-SED-M1 are 
effective on the first day of the first full billing period beginning 
on or after January 1, 2018, and will remain in effect through December 
31, 2022, pending confirmation and approval by Federal Energy 
Regulatory Commission (FERC) on a final basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Jody S. Sundsted, Acting Regional 
Manager, Upper Great Plains Region, Western Area Power Administration, 
2900 4th Avenue North, Billings, MT 59101-1266, telephone (406) 255-
2800, or Ms. Linda Cady-Hoffman, Rates Manager, Upper Great Plains 
Region, Western Area Power Administration, 2900 4th Avenue North, 
Billings, MT 59101-1266, telephone (406) 255-2920, email [email protected].

SUPPLEMENTARY INFORMATION: 

Firm Electric Service

    On December 2, 2014, the Deputy Secretary of Energy approved, on an 
interim basis, Rate Schedules P-SED-F12 and P-SED-FP12 under Rate Order 
No. WAPA-166 for the 5-year period beginning January 1, 2015, and 
ending December 31, 2019 (79 FR 72670-72677 (Dec. 8, 2014)).\1\ These 
rate schedules are formula-based, providing for adjustments to the 
Drought Adder component.\2\ On January 1, 2017, the Drought Adder 
component of the P-SMBP--ED effective rate schedule was adjusted 
downward, recognizing repayment of drought costs included in the 
Drought Adder component of the approved formula rates. Under Rate 
Schedule P-SED-F12 with adjusted Drought Adder component as of January 
1, 2017, the firm capacity charge is $6.50/kWmonth and the firm energy 
charge is 16.18 mills/kWh. Under Rate Schedule P-SED-FP12, the firm 
peaking capacity charge is $5.85/kWmonth. Firm peaking energy is 
normally returned. A firm peaking energy charge of 16.18 mills/kWh will 
be assessed in the event energy is not returned.
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    \1\ FERC confirmed and approved Rate Order WAPA-166 on a final 
basis on March 18, 2015, in Docket No. EF15-3-000. See United States 
Department of Energy, Western Area Power Administration (Pick-Sloan 
Missouri Basin Program--Eastern Division), 150 FERC ] 62,170.
    \2\ The Drought Adder component is a formula-based revenue 
requirement that includes future purchase power above timing 
purchases, previous purchase power drought deficits, and interest on 
the purchase power drought deficits. See 72 FR 64067 (November 14, 
2007). The Drought Adder was added as a component to the energy and 
capacity rates in Rate Order No. WAPA-135, which was approved by the 
Deputy Secretary on an interim basis on November 14, 2007 (72 FR 
64067). FERC confirmed and approved Rate Order WAPA-135 on a final 
basis on April 14, 2008, in Docket No. EF08-5031. See United States 
Department of Energy, Western Area Power Administration (Pick-Sloan 
Missouri Basin Program-Eastern Division), 123 FERC ] 62,048. WAPA 
reviews the Drought Adder component each September to determine if 
drought costs differ from those projected in the Power Repayment 
Study and whether an adjustment to the Drought Adder component is 
necessary. See 72 FR 64071. The Drought Adder component may be 
adjusted downward using the approved annual Drought Adder adjustment 
process, whereas an incremental upward adjustment to the Drought 
Adder component greater than the equivalent of 2 mills/kWh requires 
a public rate process. See 72 FR 64071.
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    Effective January 1, 2018, WAPA is adjusting the overall composite 
rate of the Pick-Sloan Missouri Basin Program, which is reflected in an 
adjustment to the formula-based charge components of the firm power 
rate schedules. The Drought Adder component of the firm power rate 
schedules will go down to zero and the Base component will be adjusted 
upward to reflect present costs attributed to the charge components. 
WAPA's Upper Great Plains Region (UGP) is removing the 5 percent 
voltage discount in the existing P-SMBP--ED firm power rate schedule P-
SED-F12 and removing the voltage discount from the firm power revenue 
requirement. The total annual revenue requirement for P-SMBP--ED is 
$230.1 million for firm power service and firm peaking power service. 
Under Rate Schedule P-SED-F13, the firm capacity charge is $5.25/
kWmonth and the firm energy charge is 13.27 mills/kWh. Under Rate 
Schedule P-SED-FP13, the firm peaking capacity charge is $4.75/kWmonth. 
Firm Peaking Energy is normally returned. A

[[Page 57743]]

Firm Peaking Energy charge of 13.27 mills/kWh will be assessed in the 
event energy is not returned.

Sale of Surplus Products

    In addition to the firm power and firm peaking power rate 
schedules, WAPA is implementing a new formula-based rate schedule, P-
SED-M1, applicable to the sale of surplus energy and capacity products; 
energy, reserves, regulation, and frequency response. If P-SMBP--ED 
surplus products are available, the charge for each product will be 
determined based on market rates plus administrative costs. The 
customer will be responsible for acquiring transmission service 
necessary to deliver the product(s), for which a separate charge may be 
incurred.

Legal Authority

    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
the Secretary of Energy delegated: (1) The authority to develop power 
and transmission rates to the Administrator of WAPA; (2) the authority 
to confirm, approve, and place such rates into effect on an interim 
basis to the Deputy Secretary of Energy; and (3) the authority to 
confirm, approve, and place into effect on a final basis, to remand or 
to disapprove such rates to FERC. Federal rules (10 CFR part 903) 
govern DOE procedures for public participation in power rate 
adjustments.
    Under Delegation Order Nos. 00-037.00B and 00-001.00F and in 
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm, 
approve, and place Rate Order No. WAPA-180, which provides the formula 
rates for P-SMBP--ED firm power, firm peaking power, and sale of 
surplus products, into effect on an interim basis. The new Rate 
Schedules P-SED-F13, P-SED-FP13, and P-SED-M1 will be submitted to FERC 
for confirmation and approval on a final basis.

    Dated: November 30, 2017.
Dan Brouillette,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY

DEPUTY SECRETARY

    In the matter of: Western Area Power Administration
Rate Adjustment for the Pick-Sloan Missouri Basin Program--Eastern 
Division)

Rate Order No. WAPA-180
ORDER CONFIRMING, APPROVING, AND PLACING THE PICK-SLOAN MISSOURI BASIN 
PROGRAM--EASTERN DIVISION FIRM POWER SERVICE, FIRM PEAKING POWER 
SERVICE AND SALE OF SURPLUS PRODUCT FORMULA RATES INTO EFFECT ON AN 
INTERIM BASIS
    The firm power, firm peaking power, and sale of surplus product 
rates for the Pick-Sloan Missouri Basin Program--Eastern Division (P-
SMBP--ED) set forth in this order are established in accordance with 
section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152). This Act transferred to and vested in the Secretary of 
Energy the power marketing functions of the Secretary of the Department 
of the Interior and the Bureau of Reclamation (Reclamation) under the 
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, particularly section 9(c) of the 
Reclamation Act of 1939 (43 U.S.C. 485h(c)) and section 5 of the Flood 
Control Act of 1944 (16 U.S.C. 825s), and other acts that specifically 
apply to the projects involved.
    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
the Secretary of Energy delegated: (1) the authority to develop power 
and transmission rates to the Administrator of Western Area Power 
Administration (WAPA); (2) the authority to confirm, approve, and place 
such rates into effect on an interim basis to the Deputy Secretary of 
Energy; and (3) the authority to confirm, approve, and place into 
effect on a final basis, to remand, or to disapprove such rates to the 
Federal Energy Regulatory Commission (FERC). Federal rules (10 CFR part 
903) govern DOE procedures for public participation in power rate 
adjustments.

Acronyms, Terms and Definitions

    As used in this Rate Order, the following acronyms, terms and 
definitions apply:
    Base: A fixed revenue requirement that includes O&M expense, 
investments and replacements, interest on investments and replacements, 
normal timing power purchase (purchases due to operational constraints, 
not associated with drought), and transmission costs.
    Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment. It is expressed in kilowatts.
    Capacity Rate: The rate which sets forth the charges for capacity. 
It is expressed in dollars per kilowatt-month and applied to each 
kilowatt of the Contract Rate of Delivery (CROD).
    Composite Rate: The Power Repayment Study (PRS) rate for commercial 
firm power, which is the total annual revenue requirement for capacity 
and energy divided by the total annual energy sales. It is expressed in 
mills per kilowatt-hour and used only for comparison purposes.
    Customer: An entity with a contract that is receiving firm electric 
service from WAPA.
    Deficits: Deferred or unrecovered annual and/or interest expenses.
    DOE Order RA 6120.2: An order outlining power marketing 
administration financial reporting and rate-making procedures.
    Drought Adder: A formula-based revenue requirement that includes 
future purchase power above timing purchases, previous purchase power 
drought deficits, and interest on the purchase power drought deficits.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time. Electric energy is expressed in kilowatt-hours.
    Energy Charge: The charge under the rate schedule for energy. It is 
expressed in mills per kilowatt-hour and applied to each kilowatt-hour 
delivered to each Customer.
    Firm: A type of product and/or service available at the time 
requested by a Customer.
    FY: Fiscal year; October 1 to September 30.
    kW: Kilowatt--the electrical unit of capacity that equals 1,000 
watts.
    kWh: Kilowatt-hour--the electrical unit of energy that equals 1,000 
watts in 1 hour.
    kWmonth: Kilowatt-month the electrical unit of the monthly amount 
of capacity.
    LAP Loveland Area Projects
    mills/kWh: Mills per kilowatt-hour--the unit of charge for energy 
(equal to one tenth of a cent or one thousandth of a dollar).
    MW: Megawatt--the electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.
    Non-timing Power Purchases: Power purchases that are not related to 
operational constraints such as management of endangered species, 
species habitat, water quality, navigation, control area purposes, etc.
    O&M Operation and Maintenance.
    P-SMBP: The Pick-Sloan Missouri Basin Program.
    P-SMBP--ED: Pick-Sloan Missouri Basin Program--Eastern Division.
    P-SMBP--WD: Pick-Sloan Missouri Basin Program--Western Division.
    Power: Capacity and energy.
    Power Factor: The ratio of real to apparent power at any given 
point and

[[Page 57744]]

time in an electrical circuit. Generally, it is expressed as a 
percentage.
    Preference: The provisions of Reclamation Law that require WAPA to 
first make Federal power available to certain entities. For example, 
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) 
states that preference in the sale of Federal power shall be given to 
municipalities and other public corporations or agencies and also to 
cooperatives and other nonprofit organizations financed in whole or in 
part by loans made under the Rural Electrification Act of 1936.
    Provisional Formula Rate: A formula rate confirmed, approved, and 
placed into effect on an interim basis by the Deputy Secretary of 
Energy.
    Ratesetting PRS: The Power Repayment Study used for the rate 
adjustment period.
    Revenue Requirement: The revenue required by PRS to recover annual 
expenses (such as O&M, purchase power, transmission service expenses, 
interest, and deferred expenses) and repay Federal investments and 
other assigned costs.

Effective Date

    The Provisional Formula Rate Schedules P-SED-F13, P-SED-FP13, and 
P-SED-M1 will take effect on the first day of the first full billing 
period beginning on or after January 1, 2018, and will remain in effect 
through December 31, 2022, pending approval by FERC on a final basis or 
until superseded.

Public Notice and Comment

    WAPA-UGP followed the Procedures for Public Participation in Power 
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these rates and schedules. The steps WAPA took to involve 
interested parties in the rate process were:
    1. A Federal Register Notice, published on July 3, 2017 (82 FR 
30858) (Proposal FRN), announced the proposed rates for P-SMBP--ED and 
began the 90-day public consultation and comment period.
    2. On July 5, 2017, WAPA-UGP mailed letters to all P-SMBP--ED 
Preference Customers and interested parties transmitting the FRN 
published on July 3, 2017.
    3. On August 22, 2017, at 9 a.m. (MDT), WAPA held a public 
information forum at the Denver Embassy Suites, 7000 Yampa Street, 
Denver, Colorado. WAPA provided updates to the proposed firm power 
rates and sale of surplus products for both P-SMBP--ED and Loveland 
Area Projects (LAP). WAPA also answered questions and gave notice that 
more information was available in the customer rate brochure.
    4. On August 22, 2017, at 11 a.m. (MDT), following the public 
information forum, at the same location, a public comment forum was 
held, to provide an opportunity for customers and other interested 
parties to comment for the record. No oral or written comments were 
received at this forum.
    5. On August 23, 2017, at 9 a.m. (CDT), WAPA held a public 
information forum at the Holiday Inn, 100 West 8th Street, Sioux Falls, 
South Dakota. WAPA provided updates to the proposed firm power rates 
and sale of surplus products for both the P-SMBP--ED and LAP. WAPA also 
answered questions and gave notice that more information was available 
in the customer rate brochure.
    6. On August 23, 2017, at 11 a.m. (CDT), following the public 
information forum, and at the same location, a public comment forum was 
held. The comment forum gave the public an opportunity to comment for 
the record. Two oral comments were received at this forum.
    7. WAPA provided a Web site that contains all dates, customer 
letters, presentations, FRNs, customer rate brochure, and other 
information about this rate process. The Web site is located at https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.aspx.
    8. During the 90-day consultation and comment period, which ended 
October 2, 2017, WAPA received two oral comments (at the August 23 
public comment forum) and two comment letters. The comments and WAPA's 
responses are addressed below. All comments have been considered in the 
preparation of this Rate Order.

Two representatives of the following organizations made oral comments

Mid-West Electric Consumers Association, Colorado
Missouri River Energy Services, South Dakota

Written comments were received from the following interested parties

Marshall Municipal Utilities, Minnesota
Missouri River Energy Services, South Dakota

Project Description

    The Pick-Sloan Missouri Basin Program (P-SMBP), originally the 
Missouri River Basin Project, was authorized by Congress in section 9 
of the Flood Control Act of 1944 of December 22, 1944 (Pub. L. 534, 58 
Stat. 887, 891). This multipurpose program provides flood control, 
irrigation, navigation, recreation, preservation and enhancement of 
fish and wildlife, and power generation. Multipurpose projects have 
been developed on the Missouri River and its tributaries in Colorado, 
Montana, Nebraska, North Dakota, South Dakota, and Wyoming.
    In addition to the multipurpose water projects authorized by 
section 9 of the Flood Control Act of 1944, certain other existing 
projects have been integrated with the P-SMBP for power marketing, 
operation, and repayment purposes. The Colorado-Big Thompson, Kendrick, 
Riverton, and Shoshone Projects were combined with the P-SMBP in 1954, 
followed by the North Platte Project in 1959. These projects were 
referred to as the ``Integrated Projects'' of the P-SMBP.
    The Flood Control Act of 1944 also authorized the inclusion of the 
Fort Peck Project with the P-SMBP for operation and repayment purposes. 
The Riverton Project was reauthorized as a unit of P-SMBP in 1970.
    The P-SMBP power is marketed by two Regions. The UGP Region, with a 
regional office in Billings, Montana, markets the Eastern Division (P-
SMBP--ED) power to approximately 340 customers. The Rocky Mountain 
Region (RMR), with a regional office in Loveland, Colorado, markets the 
Western Division (P-SMBP--WD) power through LAP to approximately 75 
customers.
    The adjustment to the LAP rate is a separate formal rate process, 
which is documented in Rate Order No. WAPA-179. Rate Order No. WAPA-179 
is also scheduled to go into effect on the first day of the first full 
billing period on or after January 1, 2018. The P-SMBP--WD revenue 
requirement is incorporated into the LAP rate, along with the revenue 
requirement for the Fryingpan-Arkansas Project.

Power Repayment Study--Firm Power Rate

    WAPA prepares a PRS each FY to determine if revenues will be 
sufficient to repay, within the required time, all costs assigned to 
the P-SMBP. Repayment criteria is based on WAPA's applicable laws and 
legislation, as well as policies including DOE Order RA 6120.2. To meet 
the Cost Recovery Criteria outlined in DOE Order RA 6120.2, a revised 
study and rate adjustment has been developed to demonstrate that 
sufficient revenues will be collected under Provisional Formula Rates 
to meet future obligations.

[[Page 57745]]

    With the removal of the voltage discount taken into account, the 
total annual revenue requirement for P-SMBP--ED is $230.1 million for 
firm power service and firm peaking power service. The revenue 
requirement and composite rates for P-SMBP--ED firm power and firm 
peaking power are being reduced, as indicated in Table 1:

                         Table 1--Comparison of Revenue Requirements and Composite Rates
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                                                                     Existing       Provisional
                                                                   requirements    requirements
                                                                    (January 1,     (January 1,   Percent change
                                                                       2017)           2018)
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P-SMBP--ED Revenue Requirement (millions $).....................          $282.7      $230.1 \1\            -19%
P-SMBP--ED Composite Rate (mills/kWh)...........................           28.25           24.00             -15
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\1\ Voltage discount removed.

    Under the existing rate methodology, rates for P-SMBP--ED firm 
power service and firm peaking power service are designed to recover an 
annual revenue requirement that includes power investment repayment, 
aid to irrigation repayment, interest expense, purchase power, O&M, and 
other expenses within the allowable period. The annual revenue 
requirement continues to be allocated equally between capacity and 
energy.

Existing and Provisional Formula Rates

    The existing Rate Schedules P-SED-P12 and P-SED-FP12 and 
provisional Rate Schedules P-SED-P13 and P-SED-FP13 continue to be 
formula-based, with Base and Drought Adder components, and provide for 
an incremental upward adjustment to the Drought Adder component up to 2 
mills/kwh. An incremental increase to the Drought Adder greater than 2 
mills/kWh requires a public process. The Drought Adder may be adjusted 
downward pursuant to the formula, by using the approved annual Drought 
Adder adjustment process. A comparison of the existing and Provisional 
Formula Rates for P-SMBP--ED firm electric service is listed in Table 
2:

                          Table 2--Comparison of Existing and Provisional Formula Rates
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                                                                     Existing
                                                                   charges under    Provisional
                                                                   P-SED-F12/ P-   charges under
                                                                   SED-FP12 with   P-SED-F13/ P-
                       Firm power service                            modified     SED-FP13 as of  Percent change
                                                                   drought adder    January 1,
                                                                   as of January       2018
                                                                      1, 2017
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Firm Capacity ($/kW month)......................................           $6.50           $5.25             -19
Firm Energy (mills/kWh).........................................           16.18           13.27             -18
Firm Peaking Capacity ($/kW month)..............................           $5.85           $4.75             -19
Firm Peaking Energy (mills/kWh) \1\.............................           16.18           13.27             -18
----------------------------------------------------------------------------------------------------------------
\1\ Firm Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is
  not returned.

    Under the new formula-based Rate Schedule P-SED-M1, the Provisional 
Formula Rate will consist of a charge for products listed in the rate 
schedule that will be determined at the time of the sale based on 
market rates, plus administrative costs.

Certification of Rates

    WAPA's Administrator certified that the Provisional Formula Rates 
for P-SMBP--ED firm power, firm peaking power, and sale of surplus 
product rates under Rate Schedules P-SED-F13, P-SED-FP13, and P-SED-M1 
are at the lowest possible rates consistent with sound business 
principles. The Provisional Formula Rates were developed following 
administrative policies and applicable laws.

P-SMBP--ED Firm Power Rate Discussion

    According to Reclamation Law, WAPA is required to establish power 
rates sufficient to recover O&M, purchased power and interest expenses, 
and repay power investment and irrigation aid. The P-SMBP--ED firm 
power and firm peaking power Base and Drought Adder components are 
updated to represent present costs. As a part of the existing and 
provisional rate schedules, WAPA provides for a formula-based 
adjustment of the Drought Adder component of up to 2 mills/kWh. The 2 
mills/kWh cap places a limit on the amount the Drought Adder component 
can be adjusted relative to associated drought costs to recover costs 
attributable to the Drought Adder formula rate for any one-year cycle. 
Continuing to identify the firm power service revenue requirement using 
Base and Drought Adder components will assist WAPA in the presentation 
of future impacts of droughts, demonstrate repayment of drought-related 
costs in the PRS, and allow WAPA to be more responsive to changes 
caused by drought-related expenses. WAPA will continue to charge and 
bill its Preference Customers firm power service and firm peaking power 
service rates for energy and capacity, which are the sum of the Base 
and Drought Adder components.
    Under Rate Schedules P-SED-F13 and P-SED-FP13, WAPA will continue 
to identify its firm power revenue requirement using Base and Drought 
Adder components. The Base component is a fixed revenue requirement 
that includes annual O&M expenses, investment repayment and associated 
interest, normal timing power purchases, and transmission costs. Normal 
timing power purchases

[[Page 57746]]

are due to operational constraints (e.g., management of endangered 
species habitat, water quality, navigation, etc.) and are not 
associated with drought. WAPA cannot adjust the Base component without 
a public process.
    The Drought Adder component is a formula-based revenue requirement 
that includes costs attributable to drought conditions within P-SMBP. 
The Drought Adder component includes costs associated with future Non-
timing Power Purchases to meet firm power contractual obligations not 
covered with available system generation due to a drought, previously 
incurred deficits due to purchased power debt that resulted from Non-
timing Power Purchases made during a drought, and the interest 
associated with drought debt. The Drought Adder component is designed 
to repay WAPA's drought debt within 10 years from the time the debt was 
incurred, using balloon-payment methodology. For example, the drought 
debt incurred by WAPA in FY 2009 is required to be repaid by FY 2019.
    The annual revenue requirement calculation will continue to be 
summarized by the following formula: Annual Revenue Requirement = Base 
Revenue Requirement + Drought Adder Revenue Requirement. Both the Base 
and Drought Adder components recover portions of the firm power revenue 
requirement and firm peaking power revenue necessary to equal the P-
SMBP--ED revenue requirement. Under this Provisional Rate, the P-SMBP--
ED annual revenue requirement equals $230.1 million and is comprised of 
a Base revenue requirement of $230.1 million plus a Drought Adder 
revenue requirement of $0. A comparison of the existing and provisional 
charge components is listed in Table 3.

                                                    Table 3--Summary of P-SMBP--ED Charge Components
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Existing charges under rate schedules P-SED-   Provisional charges under rate schedules P-SED-     Change
                                             F12 and P-SED-FP12 with  modified drought       F13 and P-SED-FP13 as of January 1, 2018    ---------------
                                                   adder as of  January 1, 2017          ------------------------------------------------
                                         ------------------------------------------------
                                               Base        Drought Adder                       Base        Drought Adder   Total charge         (%)
                                             component       component     Total charge      component       component
--------------------------------------------------------------------------------------------------------------------------------------------------------
Firm Capacity                                      $4.90           $1.60           $6.50           $5.25           $0.00           $5.25            -19%
 (/kWmonth).............................
Firm Energy (mills/kWh).................           12.33            3.85           16.18           13.27            0.00           13.27            -18%
Firm Peaking Capacity ($/kWmonth).......           $4.45           $1.40           $5.85           $4.75           $0.00           $4.75            -19%
Firm Peaking Energy (mills/kWh) \1\.....           12.33            3.85           16.18           13.27            0.00           13.27            -18%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Firm Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not returned.

    WAPA reviews its firm power service rates annually. WAPA will 
review the Base and Drought Adder components after the annual PRS is 
completed, generally in the first quarter of the calendar year. If an 
adjustment to the Base component is necessary or if an incremental 
upward adjustment to the Drought Adder component greater than the 
equivalent of 2 mills/kWh to the PRS Composite Rate is necessary, WAPA 
will initiate a public process following 10 CFR part 903 before making 
an adjustment.
    In accordance with the approved Drought Adder adjustment process, 
WAPA will review the Drought Adder component annually in early summer 
to determine if drought costs differ from those projected in the PRS. 
In October, WAPA will determine if a change to the Drought Adder 
component is necessary, either incremental or decremental. Adjustment 
to the Drought Adder component, up to 2 mills/kWh, will be implemented 
in the following January billing cycle. Although decremental 
adjustments to the Drought Adder component will occur as drought costs 
are repaid, the adjustments cannot result in a negative Drought Adder 
component. Implementing the Drought Adder component adjustment on 
January 1 of each year will help keep the drought deficits from 
escalating as quickly, will lower the interest expense due to drought 
deficits, will demonstrate responsible deficit management, and will 
provide prompt drought deficit repayments.

Statement of Revenue and Related Expenses

    The following Table 4 provides a summary of projected revenue and 
expense data for the P-SMBP, including both the Eastern and Western 
Division's firm electric service revenue requirements, through the 5-
year provisional rate approval period. The firm power rates for Eastern 
and Western Divisions have been developed with the following revenues 
and expenses for the P-SMBP:

           Table 4--P-SMBP Comparison of 5-Year Rate Period (FY 2018-2022) Total Revenues and Expenses
----------------------------------------------------------------------------------------------------------------
                                                           Existing Rate     Provisional Rate
                                                               ($000)             ($000)       Difference ($000)
----------------------------------------------------------------------------------------------------------------
Total Revenues\1\......................................         $2,679,973         $2,644,825          ($35,148)
----------------------------------------------------------------------------------------------------------------
Revenue Distribution
Expenses:
O&M....................................................         $1,082,969         $1,158,866            $75,897
Purchased Power........................................            164,049            124,796           (39,253)
Interest...............................................            561,528            560,257            (1,271)
Transmission\1\........................................             64,072            460,982            396,910
----------------------------------------------------------------------------------------------------------------
    Total Expenses.....................................         $1,872,618         $2,304,901           $432,283
 

[[Page 57747]]

 
Principal Payments:
Capitalized Expenses (Deficits) \2\....................           $345,006            $42,325         ($302,681)
Original Project and Additions \2\.....................            401,193            179,017          (222,176)
Replacements \2\.......................................             61,156             72,864             11,708
Irrigation Aid.........................................                  0             45,718             45,718
                                                        --------------------------------------------------------
    Total Principal Payments...........................           $807,355           $339,924         ($467,431)
                                                        --------------------------------------------------------
    Total Revenue Distribution.........................         $2,679,973         $2,644,825          ($35,148)
----------------------------------------------------------------------------------------------------------------
\1\ Transmission increase is a result of accounting treatment of transmission expense and transmission revenue
  due to WAPA-UPG joining the Southwest Power Pool (SPP).
\2\ Due to historic drought conditions, revenues generated in the cost evaluation period are applied toward
  repayment of deferred annual expenses rather than repayment of project additions and replacements. The
  outstanding deferred of amount $42.3 million is projected to be repaid in 2018, a year ahead of its due date.

Sale of Surplus Products Discussion

    WAPA is also implementing a new formula rate for the sale of 
surplus products under Rate Schedule P-SED-M1. This new rate schedule 
allows for the sale of generation and generation-related products in 
excess of WAPA's P-SMBP--ED firm power obligations at market rates. P-
SED-M1 is a new formula-based rate schedule, applicable to the sale of 
surplus energy and capacity products. The schedule includes reserves, 
regulation, frequency response, and energy. If WAPA UGP surplus 
products are available, the charge is determined based on market rates, 
plus administrative costs. The customer will be responsible for 
acquiring transmission service necessary to deliver the product(s) for 
which a separate charge may be incurred. WAPA is placing Rate Schedule 
P-SED-M1 into effect for the 5-year period beginning January 1, 2018, 
through December 31, 2022.

Basis for Rate Development

    WAPA is lowering the overall charges for firm power service and 
firm peaking power service by 19 percent, by reducing the Drought Adder 
component to zero, increasing the Base component, and removing the 
voltage discount. The Provisional Formula Rates under Rate Schedules P-
SED-F13 and P-SED-FP13 will provide sufficient revenue to pay all 
annual costs, including interest expense, and repay investments within 
the allowable periods.

Comments

    WAPA received two comment letters and two oral comments during the 
public consultation and comment period. The comments expressed in these 
letters have been paraphrased, where appropriate, without compromising 
the meaning of the comments.
    A. Comment: One customer expressed support of the proposed rate 
adjustment as described in the FRN for Rate Order No. WAPA-180. The 
customer is aware that WAPA intends to lower the Drought Adder to zero 
and increase the Base component due to inflationary pressures. The 
customer also expressed support of removing the voltage discount. The 
customer commended WAPA on paying off the $843 million in drought debt 
as a significant achievement. The customer acknowledged much has been 
learned about the risks of power supply management through drought 
periods. The customer encouraged WAPA to work towards implementing a 
purchase power and wheeling strategy for WAPA's unobligated balances to 
help manage such risks in the future.
    Response: This rate reduction rebalances the Base and Drought Adder 
components. WAPA has also determined that the voltage discount has 
served its purpose and now is no longer needed. In its nearly 70 years 
of application, the original intent of reimbursing customers for 
relieving the BOR and then WAPA of transmission facility construction 
costs has been met. The purchase power and wheeling strategy, as well 
as the use of unobligated balances, are not directly related to this 
rate action. WAPA will, however, continue to complete an annual Drought 
Adder review that allows WAPA to be more responsive to rate adjustments 
driven by drought periods. WAPA is committed to continuing to implement 
its purchase power and wheeling strategy and use of unobligated 
balances in an open and transparent manner.
    B. Comment: Multiple customer representatives supported the rate 
adjustment as proposed, and emphasized the need for continued cost 
control regarding the Base component.
    Response: WAPA is committed to keeping the power rates at the 
lowest possible rates while maintaining sound business principles.

Availability of Information

    Information about this rate adjustment, including the customer rate 
brochure, PRS, comments, letters, memorandums, and other supporting 
materials that were used to develop the Provisional Formula Rates, is 
be available for inspection and copying at the Upper Great Plains 
Regional Office, located at 2900 4th Avenue North, 6th Floor, Billings, 
Montana. Many of these documents are also available on WAPA's Web site 
under the ``2018 Firm Rate Adjustment'' section located at https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.aspx.

RATEMAKING PROCEDURE REQUIREMENTS

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969, 42 U.S.C. 4321-4347: the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508): and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), WAPA 
has determined this action is categorically excluded from preparing an 
environmental assessment or an environmental impact statement. A copy 
of the categorical exclusion determination is available on WAPA's Web 
site at http://www.wapa.gov/regions/UGP/Environment/Documents/RateOrderWAPA-180.pdf.

[[Page 57748]]

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.

Submission to the Federal Energy Regulatory Commission

    The Provisional Formula Rates herein confirmed, approved, and 
placed into effect on an interim basis, together with supporting 
documents, will be submitted to FERC for confirmation and final 
approval.

ORDER

    In view of the foregoing and under the authority delegated to me, I 
confirm and approve on an interim basis, effective on the first full 
billing period on or after January 1, 2018, Rate Schedules P-SED-F13, 
P-SED-FP13, and P-SED-M1 for the Pick-Sloan Missouri Basin Program--
Eastern Division Project of the Western Area Power Administration. 
These rate schedules shall remain in effect on an interim basis, 
pending Federal Energy Regulatory Commission's confirmation and 
approval of the rate schedules or substitute rates on a final basis 
through December 31, 2022, or until superseded.

    Dated: November 30, 2017

Dan Brouillette
Deputy Secretary of Energy

Rate Schedule P-SED-F13

(Supersedes Schedule P-SED-F12)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION

Pick-Sloan Missouri Basin Program--Eastern Division

FIRM POWER SERVICE

(Approved Under Rate Order No. WAPA-180)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2018, through December 31, 2022, or until superseded 
by another rate schedule, whichever occurs earlier.

Available

    Within the marketing area served by the Eastern Division of the 
Pick-Sloan Missouri Basin Program; within Montana, North Dakota, South 
Dakota, Minnesota, Iowa, and Nebraska.

Applicable

    To the power and energy delivered to customers as firm power 
service.

Character

    Alternating current, 60 hertz, three phase, delivered and metered 
at the voltages and points established by contract.

Formula Rate and Charge Components

Rate = Base component + Drought Adder component.
    Monthly Charge as of January 1, 2018, under the Rate:
    CAPACITY CHARGE: $5.25 for each kilowatt per month (kWmo) of 
billing capacity.
    ENERGY CHARGE: 13.27 mills for each kilowatt-hour (kWh) for all 
energy delivered as firm power service.
    BILLING CAPACITY: The billing capacity will be as defined by the 
power sales contract.
    Charge Components
    Base Component: A fixed revenue requirement that includes operation 
and maintenance expense, investments and replacements, interest on 
investments and replacements, normal timing purchase power (purchases 
due to operational constraints, not associated with drought), and 
transmission costs. Any proposed change to the Base component will 
require a public process.
[GRAPHIC] [TIFF OMITTED] TN07DE17.001

    Drought Adder Component: A formula-based revenue requirement that 
includes future purchase power expense above timing purchases, previous 
purchase power drought deficits, and interest on the purchase power 
drought deficits. The formulas, along with the charges under the 
formulas as of January 1, 2018, are:
[GRAPHIC] [TIFF OMITTED] TN07DE17.002

    Annual Drought Adder Adjustment Process:
    The Drought Adder may be adjusted annually using the above formulas 
for any costs attributed to drought of less than or equal to the 
equivalent of 2 mills/kWh to the Power Repayment Study (PRS) composite 
rate. Any planned incremental upward adjustment to the Drought Adder 
greater than the equivalent of 2 mills/kWh to the PRS composite rate 
will require a public process.
    The annual review process is initiated in early summer when WAPA 
reviews the Drought Adder component and provides notice of any 
estimated change to the Drought Adder component charge under the 
formula. In October, WAPA will make a final determination of any change 
to the Drought Adder component charge, either incremental or 
decremental. If a Drought Adder component change is required, a 
modified Drought Adder revenue requirement and the associated charges 
will become effective the following January 1 and will be identified in 
a Drought Adder modification update. WAPA will inform customers of 
updates

[[Page 57749]]

by letter and post updates to WAPA's external Web site.
    Adjustments:
    For Billing of Unauthorized Overruns:
    For each billing period in which there is a contract violation 
involving an unauthorized overrun of the contractual firm power and/or 
energy obligations, such overrun shall be billed at 10 times the 
formula rate.
    For Power Factor:
    None. Customers will be required to maintain a power factor at the 
point of delivery between 95-percent lagging and 95-percent leading.
Rate Schedule P-SED-FP13
(Supersedes Schedule P-SED-FP12)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION

Pick-Sloan Missouri Basin Program--Eastern Division

FIRM PEAKING POWER SERVICE

(Approved Under Rate Order No. WAPA-180)

Effective:

    The first day of the first full billing period beginning on or 
after January 1, 2018, through December 31, 2022, or until superseded 
by another rate schedule, whichever occurs earlier.

Available:

    Within the marketing area served by the Eastern Division of the 
Pick-Sloan Missouri Basin Program; within Montana, North Dakota, South 
Dakota, Minnesota, Iowa, and Nebraska.

Applicable:

    To the power sold to customers as firm peaking power service.

Character:

    Alternating current, 60 hertz, three phase, delivered and metered 
at the voltages and points established by contract.

Formula Rate and Charge Components:

Rate = Base component + Drought Adder component

    Monthly Charge as of January 1, 2018, under the Rate:
    CAPACITY CHARGE:
    $4.75 for each kilowatt per month (kWmo) of the effective contract 
rate of delivery for peaking power or the maximum amount scheduled, 
whichever is greater.
    ENERGY CHARGE:
    13.27 mills for each kilowatt-hour (kWh) for all energy scheduled 
for delivery without return.
    Charge Components:
    Base Component: A fixed revenue requirement that includes operation 
and maintenance expense, investments and replacements, interest on 
investments and replacements, normal timing purchase power (purchases 
due to operational constraints, not associated with drought), and 
transmission costs. Any proposed change to the Base component will 
require a public process.
[GRAPHIC] [TIFF OMITTED] TN07DE17.005

    Drought Adder Component: A formula-based revenue requirement that 
includes future purchase power above timing purchases, previous 
purchase power drought deficits, and interest on the purchase power 
drought deficits. The formulas, along with the charges under the 
formulas as of January 1, 2018, are:
[GRAPHIC] [TIFF OMITTED] TN07DE17.006

    Annual Drought Adder Adjustment Process:
    The Drought Adder may be adjusted annually using the above formulas 
for any costs attributed to drought of less than or equal to the 
equivalent of 2 mills/kWh to the Power Repayment Study (PRS) composite 
rate. Any planned incremental upward adjustment to the Drought Adder 
greater than the equivalent of 2 mills/kWh to the PRS composite rate 
will require a public process.
    The annual review process is initiated in early summer when WAPA 
reviews the Drought Adder component and provides notice of any 
estimated change to the Drought Adder component charge under the 
formula. In October, WAPA will make a final determination of any change 
to the Drought Adder component charge, either incremental or 
decremental. If a Drought Adder component change is required, a 
modified Drought Adder revenue requirement and the associated charges 
will become effective the following January 1 and will be identified in 
a Drought Adder modification update. WAPA will inform customers of 
updates by letter and post updates to WAPA's external Web site.
    BILLING CAPACITY:
    The billing capacity will be the greater of (1) the highest 30-
minute integrated capacity measured during the month up to, but not in 
excess of, the delivery obligation under the power sales contract, or 
(2) the contract rate of delivery.
    Adjustments:
    Billing for Unauthorized Overruns:
    For each billing period in which there is a contract violation 
involving an unauthorized overrun of the contractual obligation for 
peaking capacity and/or energy, such overrun shall be billed at 10 
times the above rate.
Rate Schedule P-SED-M1

[[Page 57750]]

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION

PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN DIVISION

SALE OF SURPLUS PRODUCTS

(Approved Under Rate Order No. WAPA-180)

Effective:

    The first day of the first full billing period beginning on or 
after January 1, 2018, through December 31, 2022, or until superseded 
by another rate schedule, whichever occurs earlier.

Applicable:

    This rate schedule applies to Eastern Division of the Pick-Sloan 
Missouri Basin Program marketing and is applicable to the sale of the 
following P-SMBP--ED surplus energy and capacity products; energy, 
frequency response, regulation, and reserves. If any P-SMBP--ED surplus 
energy and capacity products are available, UGP can make the product(s) 
available for sale, providing entities enter into a separate 
agreement(s) with UGP Marketing Office which will specify the terms of 
sale(s).

Formula Rate:

    The charge for each product is determined at the time of the sale 
based on market rates, plus administrative costs. The customer will be 
responsible for acquiring transmission services necessary to deliver 
the product(s), for which a separate charge may be incurred.

[FR Doc. 2017-26376 Filed 12-6-17; 8:45 am]
 BILLING CODE 6450-01-P



                                                57742                      Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices

                                                Adjustments                                             DEPARTMENT OF ENERGY                                  component.2 On January 1, 2017, the
                                                                                                                                                              Drought Adder component of the P–
                                                  For Transformer Losses: If delivery is                Western Area Power Administration                     SMBP—ED effective rate schedule was
                                                made at transmission voltage but                                                                              adjusted downward, recognizing
                                                metered on the low-voltage side of the                  Pick-Sloan Missouri Basin Program—                    repayment of drought costs included in
                                                substation, the meter readings will be                  Eastern Division—Rate Order No.                       the Drought Adder component of the
                                                increased to compensate for transformer                 WAPA–180                                              approved formula rates. Under Rate
                                                losses as provided for in the contract.                                                                       Schedule P–SED–F12 with adjusted
                                                                                                        AGENCY:Western Area Power
                                                  For Power Factor: None. The customer                                                                        Drought Adder component as of January
                                                                                                        Administration, DOE.                                  1, 2017, the firm capacity charge is
                                                will be required to maintain a power
                                                                                                        ACTION: Notice of order concerning firm               $6.50/kWmonth and the firm energy
                                                factor at all points of measurement
                                                                                                        power, firm peaking power, and sale of                charge is 16.18 mills/kWh. Under Rate
                                                between 95-percent lagging and
                                                                                                        surplus product formula rates.                        Schedule
                                                95-percent leading.
                                                                                                                                                              P-SED-FP12, the firm peaking capacity
                                                                                                        SUMMARY:  The Deputy Secretary of                     charge is $5.85/kWmonth. Firm peaking
                                                Rate Schedule L–M2                                      Energy confirmed and approved Rate                    energy is normally returned. A firm
                                                (Supersedes Rate Schedule L–M1)                         Order No. WAPA–180 and Rate                           peaking energy charge of 16.18 mills/
                                                                                                        Schedules P-SED-F13, P-SED-FP13, and                  kWh will be assessed in the event
                                                UNITED STATES DEPARTMENT OF
                                                                                                        P–SED–M1 for firm power service, firm                 energy is not returned.
                                                ENERGY
                                                                                                        peaking power service, and a new                         Effective January 1, 2018, WAPA is
                                                WESTERN AREA POWER                                      formula rate for sale of surplus products             adjusting the overall composite rate of
                                                ADMINISTRATION                                          for the Western Area Power                            the Pick-Sloan Missouri Basin Program,
                                                                                                        Administration (WAPA) Pick-Sloan                      which is reflected in an adjustment to
                                                ROCKY MOUNTAIN REGION                                                                                         the formula-based charge components of
                                                                                                        Missouri Basin Program—Eastern
                                                Loveland Area Projects                                  Division (P-SMBP—ED) into effect on an                the firm power rate schedules. The
                                                                                                        interim basis (Provisional Formula                    Drought Adder component of the firm
                                                SALE OF SURPLUS PRODUCTS                                                                                      power rate schedules will go down to
                                                                                                        Rates).
                                                (Approved Under Rate Order No.                                                                                zero and the Base component will be
                                                                                                        DATES:  The Rate Schedules P-SED-F13,                 adjusted upward to reflect present costs
                                                WAPA–179)
                                                                                                        P-SED-FP13, and P-SED-M1 are effective                attributed to the charge components.
                                                Effective                                               on the first day of the first full billing            WAPA’s Upper Great Plains Region
                                                                                                        period beginning on or after January 1,               (UGP) is removing the 5 percent voltage
                                                  The first day of the first full billing               2018, and will remain in effect through               discount in the existing P-SMBP—ED
                                                period beginning on or after January 1,                 December 31, 2022, pending                            firm power rate schedule P-SED-F12
                                                2018, and extending through December                    confirmation and approval by Federal                  and removing the voltage discount from
                                                31, 2022, or until superseded by another                Energy Regulatory Commission (FERC)                   the firm power revenue requirement.
                                                rate schedule, whichever occurs earlier.                on a final basis or until superseded.                 The total annual revenue requirement
                                                Applicable                                              FOR FURTHER INFORMATION CONTACT:  Mr.                 for P-SMBP—ED is $230.1 million for
                                                                                                        Jody S. Sundsted, Acting Regional                     firm power service and firm peaking
                                                  This rate schedule applies to                         Manager, Upper Great Plains Region,                   power service. Under Rate Schedule P-
                                                Loveland Area Projects (LAP) Marketing                  Western Area Power Administration,                    SED-F13, the firm capacity charge is
                                                and is applicable to the sale of the                    2900 4th Avenue North, Billings, MT                   $5.25/kWmonth and the firm energy
                                                following LAP surplus energy and                        59101–1266, telephone (406) 255–2800,                 charge is 13.27 mills/kWh. Under Rate
                                                capacity products: energy, frequency                    or Ms. Linda Cady-Hoffman, Rates                      Schedule P-SED-FP13, the firm peaking
                                                response, regulation, and reserves. If                  Manager, Upper Great Plains Region,                   capacity charge is $4.75/kWmonth. Firm
                                                any of the above LAP surplus products                   Western Area Power Administration,                    Peaking Energy is normally returned. A
                                                are available, LAP can make the                         2900 4th Avenue North, Billings, MT
                                                                                                                                                                2 The Drought Adder component is a formula-
                                                product(s) available for sale, providing                59101–1266, telephone (406) 255–2920,
                                                                                                                                                              based revenue requirement that includes future
                                                entities enter into separate agreement(s)               email cady@wapa.gov.                                  purchase power above timing purchases, previous
                                                with LAP Marketing which will specify                   SUPPLEMENTARY INFORMATION:                            purchase power drought deficits, and interest on
                                                                                                                                                              the purchase power drought deficits. See 72 FR
                                                the terms of sale(s).
                                                                                                        Firm Electric Service                                 64067 (November 14, 2007). The Drought Adder
                                                                                                                                                              was added as a component to the energy and
                                                Formula Rate
                                                                                                          On December 2, 2014, the Deputy                     capacity rates in Rate Order No. WAPA–135, which
                                                                                                        Secretary of Energy approved, on an                   was approved by the Deputy Secretary on an
                                                  The charge for each product will be                                                                         interim basis on November 14, 2007 (72 FR 64067).
                                                determined at the time of the sale based                interim basis, Rate Schedules P-SED-                  FERC confirmed and approved Rate Order WAPA–
                                                on market rates, plus administrative                    F12 and P-SED-FP12 under Rate Order                   135 on a final basis on April 14, 2008, in Docket
                                                costs. The customer will be responsible                 No. WAPA–166 for the 5-year period                    No. EF08–5031. See United States Department of
                                                                                                        beginning January 1, 2015, and ending                 Energy, Western Area Power Administration (Pick-
                                                for acquiring transmission service                                                                            Sloan Missouri Basin Program-Eastern Division),
                                                                                                        December 31, 2019 (79 FR 72670–72677                  123 FERC ¶ 62,048. WAPA reviews the Drought
                                                necessary to deliver the product(s), for
                                                                                                        (Dec. 8, 2014)).1 These rate schedules                Adder component each September to determine if
                                                which a separate charge may be
                                                                                                        are formula-based, providing for                      drought costs differ from those projected in the
sradovich on DSK3GMQ082PROD with NOTICES




                                                incurred.                                                                                                     Power Repayment Study and whether an
                                                                                                        adjustments to the Drought Adder
                                                [FR Doc. 2017–26375 Filed 12–6–17; 8:45 am]                                                                   adjustment to the Drought Adder component is
                                                                                                                                                              necessary. See 72 FR 64071. The Drought Adder
                                                BILLING CODE 6450–01–P                                    1 FERC confirmed and approved Rate Order            component may be adjusted downward using the
                                                                                                        WAPA–166 on a final basis on March 18, 2015, in       approved annual Drought Adder adjustment
                                                                                                        Docket No. EF15–3–000. See United States              process, whereas an incremental upward
                                                                                                        Department of Energy, Western Area Power              adjustment to the Drought Adder component greater
                                                                                                        Administration (Pick-Sloan Missouri Basin             than the equivalent of 2 mills/kWh requires a
                                                                                                        Program—Eastern Division), 150 FERC ¶ 62,170.         public rate process. See 72 FR 64071.



                                           VerDate Sep<11>2014   18:50 Dec 06, 2017   Jkt 244001   PO 00000   Frm 00040   Fmt 4703   Sfmt 4703   E:\FR\FM\07DEN1.SGM   07DEN1


                                                                           Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices                                          57743

                                                Firm Peaking Energy charge of 13.27                     ORDER CONFIRMING, APPROVING,                             Composite Rate: The Power
                                                mills/kWh will be assessed in the event                 AND PLACING THE PICK-SLOAN                            Repayment Study (PRS) rate for
                                                energy is not returned.                                 MISSOURI BASIN PROGRAM—                               commercial firm power, which is the
                                                                                                        EASTERN DIVISION FIRM POWER                           total annual revenue requirement for
                                                Sale of Surplus Products                                SERVICE, FIRM PEAKING POWER                           capacity and energy divided by the total
                                                   In addition to the firm power and firm               SERVICE AND SALE OF SURPLUS                           annual energy sales. It is expressed in
                                                                                                        PRODUCT FORMULA RATES INTO                            mills per kilowatt-hour and used only
                                                peaking power rate schedules, WAPA is
                                                                                                        EFFECT ON AN INTERIM BASIS                            for comparison purposes.
                                                implementing a new formula-based rate
                                                                                                           The firm power, firm peaking power,                   Customer: An entity with a contract
                                                schedule, P-SED-M1, applicable to the
                                                                                                        and sale of surplus product rates for the             that is receiving firm electric service
                                                sale of surplus energy and capacity                                                                           from WAPA.
                                                products; energy, reserves, regulation,                 Pick-Sloan Missouri Basin Program—
                                                                                                        Eastern Division (P-SMBP—ED) set forth                   Deficits: Deferred or unrecovered
                                                and frequency response. If P-SMBP—ED                                                                          annual and/or interest expenses.
                                                                                                        in this order are established in
                                                surplus products are available, the                                                                              DOE Order RA 6120.2: An order
                                                                                                        accordance with section 302 of the
                                                charge for each product will be                                                                               outlining power marketing
                                                                                                        Department of Energy (DOE)
                                                determined based on market rates plus                   Organization Act (42 U.S.C. 7152). This               administration financial reporting and
                                                administrative costs. The customer will                 Act transferred to and vested in the                  rate-making procedures.
                                                be responsible for acquiring                            Secretary of Energy the power marketing                  Drought Adder: A formula-based
                                                transmission service necessary to                       functions of the Secretary of the                     revenue requirement that includes
                                                deliver the product(s), for which a                     Department of the Interior and the                    future purchase power above timing
                                                separate charge may be incurred.                        Bureau of Reclamation (Reclamation)                   purchases, previous purchase power
                                                                                                        under the Reclamation Act of 1902 (ch.                drought deficits, and interest on the
                                                Legal Authority                                                                                               purchase power drought deficits.
                                                                                                        1093, 32 Stat. 388), as amended and
                                                   By Delegation Order No. 00–037.00B,                  supplemented by subsequent laws,                         Energy: Measured in terms of the
                                                                                                        particularly section 9(c) of the                      work it is capable of doing over a period
                                                effective November 19, 2016, the
                                                                                                        Reclamation Act of 1939 (43 U.S.C.                    of time. Electric energy is expressed in
                                                Secretary of Energy delegated: (1) The
                                                                                                        485h(c)) and section 5 of the Flood                   kilowatt-hours.
                                                authority to develop power and                                                                                   Energy Charge: The charge under the
                                                transmission rates to the Administrator                 Control Act of 1944 (16 U.S.C. 825s),
                                                                                                        and other acts that specifically apply to             rate schedule for energy. It is expressed
                                                of WAPA; (2) the authority to confirm,                                                                        in mills per kilowatt-hour and applied
                                                approve, and place such rates into effect               the projects involved.
                                                                                                           By Delegation Order No. 00–037.00B,                to each kilowatt-hour delivered to each
                                                on an interim basis to the Deputy                       effective November 19, 2016, the                      Customer.
                                                Secretary of Energy; and (3) the                        Secretary of Energy delegated: (1) the                   Firm: A type of product and/or service
                                                authority to confirm, approve, and place                authority to develop power and                        available at the time requested by a
                                                into effect on a final basis, to remand or              transmission rates to the Administrator               Customer.
                                                to disapprove such rates to FERC.                       of Western Area Power Administration                     FY: Fiscal year; October 1 to
                                                Federal rules (10 CFR part 903) govern                  (WAPA); (2) the authority to confirm,                 September 30.
                                                DOE procedures for public participation                 approve, and place such rates into effect                kW: Kilowatt—the electrical unit of
                                                in power rate adjustments.                              on an interim basis to the Deputy                     capacity that equals 1,000 watts.
                                                                                                        Secretary of Energy; and (3) the                         kWh: Kilowatt-hour—the electrical
                                                   Under Delegation Order Nos. 00–
                                                                                                        authority to confirm, approve, and place              unit of energy that equals 1,000 watts in
                                                037.00B and 00–001.00F and in                                                                                 1 hour.
                                                compliance with 10 CFR part 903 and                     into effect on a final basis, to remand,
                                                                                                        or to disapprove such rates to the                       kWmonth: Kilowatt-month the
                                                18 CFR part 300, I hereby confirm,                                                                            electrical unit of the monthly amount of
                                                                                                        Federal Energy Regulatory Commission
                                                approve, and place Rate Order No.                                                                             capacity.
                                                                                                        (FERC). Federal rules (10 CFR part 903)
                                                WAPA–180, which provides the                                                                                     LAP Loveland Area Projects
                                                                                                        govern DOE procedures for public
                                                formula rates for P–SMBP—ED firm                        participation in power rate adjustments.                 mills/kWh: Mills per kilowatt-hour—
                                                power, firm peaking power, and sale of                                                                        the unit of charge for energy (equal to
                                                surplus products, into effect on an                     Acronyms, Terms and Definitions                       one tenth of a cent or one thousandth
                                                interim basis. The new Rate Schedules                     As used in this Rate Order, the                     of a dollar).
                                                P-SED-F13, P-SED-FP13, and P-SED-M1                     following acronyms, terms and                            MW: Megawatt—the electrical unit of
                                                will be submitted to FERC for                           definitions apply:                                    capacity that equals 1 million watts or
                                                confirmation and approval on a final                      Base: A fixed revenue requirement                   1,000 kilowatts.
                                                basis.                                                  that includes O&M expense,                               Non-timing Power Purchases: Power
                                                                                                        investments and replacements, interest                purchases that are not related to
                                                  Dated: November 30, 2017.                                                                                   operational constraints such as
                                                                                                        on investments and replacements,
                                                Dan Brouillette,                                        normal timing power purchase                          management of endangered species,
                                                Deputy Secretary of Energy.                             (purchases due to operational                         species habitat, water quality,
                                                                                                        constraints, not associated with                      navigation, control area purposes, etc.
                                                DEPARTMENT OF ENERGY                                                                                             O&M Operation and Maintenance.
                                                                                                        drought), and transmission costs.
                                                DEPUTY SECRETARY                                          Capacity: The electric capability of a                 P-SMBP: The Pick-Sloan Missouri
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                                                                                                        generator, transformer, transmission                  Basin Program.
                                                  In the matter of: Western Area Power                                                                           P-SMBP—ED: Pick-Sloan Missouri
                                                                                                        circuit, or other equipment. It is
                                                Administration                                                                                                Basin Program—Eastern Division.
                                                                                                        expressed in kilowatts.
                                                Rate Adjustment for the Pick-Sloan Missouri               Capacity Rate: The rate which sets                     P-SMBP—WD: Pick-Sloan Missouri
                                                  Basin Program—Eastern Division)                       forth the charges for capacity. It is                 Basin Program—Western Division.
                                                Rate Order No. WAPA–180                                 expressed in dollars per kilowatt-month                  Power: Capacity and energy.
                                                                                                        and applied to each kilowatt of the                      Power Factor: The ratio of real to
                                                                                                        Contract Rate of Delivery (CROD).                     apparent power at any given point and


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                                                57744                      Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices

                                                time in an electrical circuit. Generally,               Projects (LAP). WAPA also answered                    887, 891). This multipurpose program
                                                it is expressed as a percentage.                        questions and gave notice that more                   provides flood control, irrigation,
                                                   Preference: The provisions of                        information was available in the                      navigation, recreation, preservation and
                                                Reclamation Law that require WAPA to                    customer rate brochure.                               enhancement of fish and wildlife, and
                                                first make Federal power available to                      4. On August 22, 2017, at 11 a.m.                  power generation. Multipurpose
                                                certain entities. For example, section                  (MDT), following the public information               projects have been developed on the
                                                9(c) of the Reclamation Project Act of                  forum, at the same location, a public                 Missouri River and its tributaries in
                                                1939 (43 U.S.C. 485h(c)) states that                    comment forum was held, to provide an                 Colorado, Montana, Nebraska, North
                                                preference in the sale of Federal power                 opportunity for customers and other                   Dakota, South Dakota, and Wyoming.
                                                shall be given to municipalities and                    interested parties to comment for the                    In addition to the multipurpose water
                                                other public corporations or agencies                   record. No oral or written comments                   projects authorized by section 9 of the
                                                and also to cooperatives and other                      were received at this forum.                          Flood Control Act of 1944, certain other
                                                nonprofit organizations financed in                        5. On August 23, 2017, at 9 a.m.                   existing projects have been integrated
                                                whole or in part by loans made under                    (CDT), WAPA held a public information                 with the P-SMBP for power marketing,
                                                the Rural Electrification Act of 1936.                  forum at the Holiday Inn, 100 West 8th                operation, and repayment purposes. The
                                                   Provisional Formula Rate: A formula                  Street, Sioux Falls, South Dakota.                    Colorado-Big Thompson, Kendrick,
                                                rate confirmed, approved, and placed                    WAPA provided updates to the                          Riverton, and Shoshone Projects were
                                                into effect on an interim basis by the                  proposed firm power rates and sale of                 combined with the P-SMBP in 1954,
                                                Deputy Secretary of Energy.                             surplus products for both the P-SMBP—                 followed by the North Platte Project in
                                                   Ratesetting PRS: The Power                           ED and LAP. WAPA also answered                        1959. These projects were referred to as
                                                Repayment Study used for the rate                       questions and gave notice that more                   the ‘‘Integrated Projects’’ of the
                                                adjustment period.                                      information was available in the                      P-SMBP.
                                                   Revenue Requirement: The revenue                     customer rate brochure.                                  The Flood Control Act of 1944 also
                                                required by PRS to recover annual                          6. On August 23, 2017, at 11 a.m.                  authorized the inclusion of the Fort
                                                expenses (such as O&M, purchase                         (CDT), following the public information               Peck Project with the P-SMBP for
                                                power, transmission service expenses,                   forum, and at the same location, a                    operation and repayment purposes. The
                                                interest, and deferred expenses) and                    public comment forum was held. The                    Riverton Project was reauthorized as a
                                                repay Federal investments and other                     comment forum gave the public an                      unit of P-SMBP in 1970.
                                                assigned costs.                                         opportunity to comment for the record.                   The P-SMBP power is marketed by
                                                Effective Date                                          Two oral comments were received at                    two Regions. The UGP Region, with a
                                                                                                        this forum.                                           regional office in Billings, Montana,
                                                  The Provisional Formula Rate                             7. WAPA provided a Web site that
                                                Schedules P-SED-F13, P-SED-FP13, and                                                                          markets the Eastern Division
                                                                                                        contains all dates, customer letters,                 (P-SMBP—ED) power to approximately
                                                P-SED-M1 will take effect on the first                  presentations, FRNs, customer rate
                                                day of the first full billing period                                                                          340 customers. The Rocky Mountain
                                                                                                        brochure, and other information about                 Region (RMR), with a regional office in
                                                beginning on or after January 1, 2018,                  this rate process. The Web site is located
                                                and will remain in effect through                                                                             Loveland, Colorado, markets the
                                                                                                        at https://www.wapa.gov/regions/UGP/                  Western Division (P-SMBP—WD) power
                                                December 31, 2022, pending approval                     rates/Pages/2018-firm-rate-
                                                by FERC on a final basis or until                                                                             through LAP to approximately 75
                                                                                                        adjustment.aspx.                                      customers.
                                                superseded.                                                8. During the 90-day consultation and
                                                                                                                                                                 The adjustment to the LAP rate is a
                                                Public Notice and Comment                               comment period, which ended October
                                                                                                                                                              separate formal rate process, which is
                                                                                                        2, 2017, WAPA received two oral
                                                  WAPA-UGP followed the Procedures                                                                            documented in Rate Order No. WAPA–
                                                                                                        comments (at the August 23 public
                                                for Public Participation in Power and                                                                         179. Rate Order No. WAPA–179 is also
                                                                                                        comment forum) and two comment
                                                Transmission Rate Adjustments and                                                                             scheduled to go into effect on the first
                                                                                                        letters. The comments and WAPA’s
                                                Extensions, 10 CFR part 903, in                                                                               day of the first full billing period on or
                                                                                                        responses are addressed below. All
                                                developing these rates and schedules.                                                                         after January 1, 2018. The P-SMBP—WD
                                                                                                        comments have been considered in the
                                                The steps WAPA took to involve                                                                                revenue requirement is incorporated
                                                                                                        preparation of this Rate Order.
                                                interested parties in the rate process                                                                        into the LAP rate, along with the
                                                were:                                                   Two representatives of the following                  revenue requirement for the Fryingpan-
                                                  1. A Federal Register Notice,                         organizations made oral comments                      Arkansas Project.
                                                published on July 3, 2017 (82 FR 30858)                 Mid-West Electric Consumers                           Power Repayment Study—Firm Power
                                                (Proposal FRN), announced the                             Association, Colorado                               Rate
                                                proposed rates for P-SMBP—ED and                        Missouri River Energy Services, South
                                                began the 90-day public consultation                      Dakota                                                WAPA prepares a PRS each FY to
                                                and comment period.                                                                                           determine if revenues will be sufficient
                                                  2. On July 5, 2017, WAPA-UGP                          Written comments were received from                   to repay, within the required time, all
                                                mailed letters to all P-SMBP—ED                         the following interested parties                      costs assigned to the P-SMBP.
                                                Preference Customers and interested                     Marshall Municipal Utilities, Minnesota               Repayment criteria is based on WAPA’s
                                                parties transmitting the FRN published                  Missouri River Energy Services, South                 applicable laws and legislation, as well
                                                on July 3, 2017.                                          Dakota                                              as policies including DOE Order RA
                                                  3. On August 22, 2017, at 9 a.m.                                                                            6120.2. To meet the Cost Recovery
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                                                (MDT), WAPA held a public                               Project Description                                   Criteria outlined in DOE Order RA
                                                information forum at the Denver                           The Pick-Sloan Missouri Basin                       6120.2, a revised study and rate
                                                Embassy Suites, 7000 Yampa Street,                      Program (P-SMBP), originally the                      adjustment has been developed to
                                                Denver, Colorado. WAPA provided                         Missouri River Basin Project, was                     demonstrate that sufficient revenues
                                                updates to the proposed firm power                      authorized by Congress in section 9 of                will be collected under Provisional
                                                rates and sale of surplus products for                  the Flood Control Act of 1944 of                      Formula Rates to meet future
                                                both P-SMBP—ED and Loveland Area                        December 22, 1944 (Pub. L. 534, 58 Stat.              obligations.


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                                                                                   Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices                                                                  57745

                                                  With the removal of the voltage                                      P-SMBP—ED is $230.1 million for firm                                  composite rates for P-SMBP—ED firm
                                                discount taken into account, the total                                 power service and firm peaking power                                  power and firm peaking power are being
                                                annual revenue requirement for                                         service. The revenue requirement and                                  reduced, as indicated in Table 1:

                                                                                     TABLE 1—COMPARISON OF REVENUE REQUIREMENTS AND COMPOSITE RATES
                                                                                                                                                                                              Existing        Provisional
                                                                                                                                                                                           requirements      requirements    Percent
                                                                                                                                                                                            (January 1,       (January 1,    change
                                                                                                                                                                                               2017)             2018)

                                                P-SMBP—ED Revenue Requirement (millions $) ......................................................................                                 $282.7          $230.1 1       ¥19%
                                                P-SMBP—ED Composite Rate (mills/kWh) ................................................................................                              28.25            24.00         ¥15
                                                   1 Voltage    discount removed.


                                                   Under the existing rate methodology,                                continues to be allocated equally                                     component up to 2 mills/kwh. An
                                                rates for P-SMBP—ED firm power                                         between capacity and energy.                                          incremental increase to the Drought
                                                service and firm peaking power service                                                                                                       Adder greater than 2 mills/kWh requires
                                                                                                                       Existing and Provisional Formula Rates
                                                are designed to recover an annual                                                                                                            a public process. The Drought Adder
                                                revenue requirement that includes                                        The existing Rate Schedules P-SED-                                  may be adjusted downward pursuant to
                                                power investment repayment, aid to                                     P12 and P-SED-FP12 and provisional                                    the formula, by using the approved
                                                irrigation repayment, interest expense,                                Rate Schedules P-SED-P13 and P-SED-                                   annual Drought Adder adjustment
                                                purchase power, O&M, and other                                         FP13 continue to be formula-based, with                               process. A comparison of the existing
                                                expenses within the allowable period.                                  Base and Drought Adder components,                                    and Provisional Formula Rates for P-
                                                The annual revenue requirement                                         and provide for an incremental upward                                 SMBP—ED firm electric service is listed
                                                                                                                       adjustment to the Drought Adder                                       in Table 2:

                                                                                          TABLE 2—COMPARISON OF EXISTING AND PROVISIONAL FORMULA RATES
                                                                                                                                                                                              Existing
                                                                                                                                                                                              charges          Provisional
                                                                                                                                                                                               under         charges under
                                                                                                                                                                                            P-SED-F12/        P-SED-F13/
                                                                                                                                                                                           P-SED-FP12                        Percent
                                                                                                     Firm power service                                                                                       P-SED-FP13
                                                                                                                                                                                           with modified                     change
                                                                                                                                                                                                                  as of
                                                                                                                                                                                           drought adder       January 1,
                                                                                                                                                                                               as of              2018
                                                                                                                                                                                             January 1,
                                                                                                                                                                                               2017

                                                Firm   Capacity ($/kW month) ........................................................................................................              $6.50             $5.25         ¥19
                                                Firm   Energy (mills/kWh) ..............................................................................................................           16.18             13.27         ¥18
                                                Firm   Peaking Capacity ($/kW month) .........................................................................................                     $5.85             $4.75         ¥19
                                                Firm   Peaking Energy (mills/kWh) 1 ..............................................................................................                 16.18             13.27         ¥18
                                                   1 Firm   Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not returned.


                                                  Under the new formula-based Rate                                     P-SMBP—ED Firm Power Rate                                             using Base and Drought Adder
                                                Schedule P-SED-M1, the Provisional                                     Discussion                                                            components will assist WAPA in the
                                                Formula Rate will consist of a charge for                                                                                                    presentation of future impacts of
                                                products listed in the rate schedule that                                 According to Reclamation Law,                                      droughts, demonstrate repayment of
                                                will be determined at the time of the                                  WAPA is required to establish power                                   drought-related costs in the PRS, and
                                                                                                                       rates sufficient to recover O&M,                                      allow WAPA to be more responsive to
                                                sale based on market rates, plus
                                                                                                                       purchased power and interest expenses,                                changes caused by drought-related
                                                administrative costs.
                                                                                                                       and repay power investment and                                        expenses. WAPA will continue to
                                                Certification of Rates                                                 irrigation aid. The P-SMBP—ED firm                                    charge and bill its Preference Customers
                                                                                                                       power and firm peaking power Base and                                 firm power service and firm peaking
                                                  WAPA’s Administrator certified that                                  Drought Adder components are updated                                  power service rates for energy and
                                                the Provisional Formula Rates for P-                                   to represent present costs. As a part of                              capacity, which are the sum of the Base
                                                SMBP—ED firm power, firm peaking                                       the existing and provisional rate                                     and Drought Adder components.
                                                power, and sale of surplus product rates                               schedules, WAPA provides for a                                           Under Rate Schedules P-SED-F13 and
                                                under Rate Schedules P-SED–F13, P-                                     formula-based adjustment of the                                       P-SED-FP13, WAPA will continue to
                                                SED-FP13, and P-SED-M1 are at the                                      Drought Adder component of up to 2                                    identify its firm power revenue
                                                                                                                       mills/kWh. The 2 mills/kWh cap places
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                                                lowest possible rates consistent with                                                                                                        requirement using Base and Drought
                                                sound business principles. The                                         a limit on the amount the Drought                                     Adder components. The Base
                                                Provisional Formula Rates were                                         Adder component can be adjusted                                       component is a fixed revenue
                                                developed following administrative                                     relative to associated drought costs to                               requirement that includes annual O&M
                                                policies and applicable laws.                                          recover costs attributable to the Drought                             expenses, investment repayment and
                                                                                                                       Adder formula rate for any one-year                                   associated interest, normal timing
                                                                                                                       cycle. Continuing to identify the firm                                power purchases, and transmission
                                                                                                                       power service revenue requirement                                     costs. Normal timing power purchases


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                                                57746                                Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices

                                                are due to operational constraints (e.g.,                                   due to purchased power debt that                                     Revenue Requirement. Both the Base
                                                management of endangered species                                            resulted from Non-timing Power                                       and Drought Adder components recover
                                                habitat, water quality, navigation, etc.)                                   Purchases made during a drought, and                                 portions of the firm power revenue
                                                and are not associated with drought.                                        the interest associated with drought                                 requirement and firm peaking power
                                                WAPA cannot adjust the Base                                                 debt. The Drought Adder component is                                 revenue necessary to equal the
                                                component without a public process.                                         designed to repay WAPA’s drought debt                                P-SMBP—ED revenue requirement.
                                                  The Drought Adder component is a                                          within 10 years from the time the debt                               Under this Provisional Rate, the P-
                                                formula-based revenue requirement that                                      was incurred, using balloon-payment                                  SMBP—ED annual revenue requirement
                                                includes costs attributable to drought                                      methodology. For example, the drought                                equals $230.1 million and is comprised
                                                conditions within P-SMBP. The Drought                                       debt incurred by WAPA in FY 2009 is
                                                                                                                                                                                                 of a Base revenue requirement of $230.1
                                                Adder component includes costs                                              required to be repaid by FY 2019.
                                                associated with future Non-timing                                             The annual revenue requirement                                     million plus a Drought Adder revenue
                                                Power Purchases to meet firm power                                          calculation will continue to be                                      requirement of $0. A comparison of the
                                                contractual obligations not covered with                                    summarized by the following formula:                                 existing and provisional charge
                                                available system generation due to a                                        Annual Revenue Requirement = Base                                    components is listed in Table 3.
                                                drought, previously incurred deficits                                       Revenue Requirement + Drought Adder

                                                                                                      TABLE 3—SUMMARY OF P-SMBP—ED CHARGE COMPONENTS
                                                                                                  Existing charges under rate schedules                                                Provisional charges under rate                Change
                                                                                                   P-SED-F12 and P-SED-FP12 with                                                   schedules P-SED-F13 and P-SED-FP13
                                                                                                       modified drought adder as of                                                        as of January 1, 2018
                                                                                                             January 1, 2017
                                                                                                                                                                                                                                        (%)
                                                                                                                                                                               Base            Drought Adder
                                                                                              Base                  Drought Adder                                                                                   Total charge
                                                                                                                                                 Total charge                component          component
                                                                                            component                component

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


                                                   WAPA reviews its firm power service                                      determine if drought costs differ from                               due to drought deficits, will
                                                rates annually. WAPA will review the                                        those projected in the PRS. In October,                              demonstrate responsible deficit
                                                Base and Drought Adder components                                           WAPA will determine if a change to the                               management, and will provide prompt
                                                after the annual PRS is completed,                                          Drought Adder component is necessary,                                drought deficit repayments.
                                                generally in the first quarter of the                                       either incremental or decremental.
                                                                                                                                                                                                 Statement of Revenue and Related
                                                calendar year. If an adjustment to the                                      Adjustment to the Drought Adder
                                                                                                                                                                                                 Expenses
                                                Base component is necessary or if an                                        component, up to 2 mills/kWh, will be
                                                incremental upward adjustment to the                                        implemented in the following January                                    The following Table 4 provides a
                                                Drought Adder component greater than                                        billing cycle. Although decremental                                  summary of projected revenue and
                                                the equivalent of 2 mills/kWh to the                                        adjustments to the Drought Adder                                     expense data for the P-SMBP, including
                                                PRS Composite Rate is necessary,                                            component will occur as drought costs                                both the Eastern and Western Division’s
                                                WAPA will initiate a public process                                         are repaid, the adjustments cannot                                   firm electric service revenue
                                                following 10 CFR part 903 before                                            result in a negative Drought Adder                                   requirements, through the 5-year
                                                making an adjustment.                                                       component. Implementing the Drought                                  provisional rate approval period. The
                                                   In accordance with the approved                                          Adder component adjustment on                                        firm power rates for Eastern and
                                                Drought Adder adjustment process,                                           January 1 of each year will help keep                                Western Divisions have been developed
                                                WAPA will review the Drought Adder                                          the drought deficits from escalating as                              with the following revenues and
                                                component annually in early summer to                                       quickly, will lower the interest expense                             expenses for the P-SMBP:

                                                         TABLE 4—P-SMBP COMPARISON OF 5-YEAR RATE PERIOD (FY 2018–2022) TOTAL REVENUES AND EXPENSES
                                                                                                                                                                                      Existing Rate        Provisional Rate        Difference
                                                                                                                                                                                         ($000)                 ($000)               ($000)

                                                Total Revenues1 ........................................................................................................                   $2,679,973              $2,644,825          ($35,148)

                                                Revenue Distribution
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                                                Expenses:
                                                O&M ...........................................................................................................................            $1,082,969              $1,158,866            $75,897
                                                Purchased Power ......................................................................................................                        164,049                 124,796            (39,253)
                                                Interest .......................................................................................................................              561,528                 560,257             (1,271)
                                                Transmission1 ............................................................................................................                     64,072                 460,982            396,910

                                                      Total Expenses ...................................................................................................                   $1,872,618              $2,304,901           $432,283




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                                                                                     Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices                                                                   57747

                                                       TABLE 4—P-SMBP COMPARISON OF 5-YEAR RATE PERIOD (FY 2018–2022) TOTAL REVENUES AND EXPENSES—
                                                                                                Continued
                                                                                                                                                                                   Existing Rate       Provisional Rate      Difference
                                                                                                                                                                                      ($000)                ($000)             ($000)

                                                Principal Payments:
                                                Capitalized Expenses (Deficits) 2 ...............................................................................                         $345,006                $42,325       ($302,681)
                                                Original Project and Additions 2 .................................................................................                         401,193                179,017        (222,176)
                                                Replacements 2 ..........................................................................................................                   61,156                 72,864           11,708
                                                Irrigation Aid ...............................................................................................................                   0                 45,718           45,718

                                                      Total Principal Payments ....................................................................................                       $807,355               $339,924       ($467,431)

                                                      Total Revenue Distribution .................................................................................                      $2,679,973              $2,644,825       ($35,148)
                                                   1 Transmission  increase is a result of accounting treatment of transmission expense and transmission revenue due to WAPA–UPG joining the
                                                Southwest Power Pool (SPP).
                                                   2 Due to historic drought conditions, revenues generated in the cost evaluation period are applied toward repayment of deferred annual ex-
                                                penses rather than repayment of project additions and replacements. The outstanding deferred of amount $42.3 million is projected to be repaid
                                                in 2018, a year ahead of its due date.


                                                Sale of Surplus Products Discussion                                        compromising the meaning of the                                    adjustment as proposed, and
                                                                                                                           comments.                                                          emphasized the need for continued cost
                                                  WAPA is also implementing a new                                             A. Comment: One customer expressed                              control regarding the Base component.
                                                formula rate for the sale of surplus                                       support of the proposed rate adjustment
                                                products under Rate Schedule P-SED-                                                                                                             Response: WAPA is committed to
                                                                                                                           as described in the FRN for Rate Order                             keeping the power rates at the lowest
                                                M1. This new rate schedule allows for                                      No. WAPA–180. The customer is aware
                                                the sale of generation and generation-                                                                                                        possible rates while maintaining sound
                                                                                                                           that WAPA intends to lower the                                     business principles.
                                                related products in excess of WAPA’s P-                                    Drought Adder to zero and increase the
                                                SMBP—ED firm power obligations at                                          Base component due to inflationary                                 Availability of Information
                                                market rates. P-SED-M1 is a new                                            pressures. The customer also expressed
                                                formula-based rate schedule, applicable                                    support of removing the voltage                                      Information about this rate
                                                to the sale of surplus energy and                                          discount. The customer commended                                   adjustment, including the customer rate
                                                capacity products. The schedule                                            WAPA on paying off the $843 million                                brochure, PRS, comments, letters,
                                                includes reserves, regulation, frequency                                   in drought debt as a significant                                   memorandums, and other supporting
                                                response, and energy. If WAPA UGP                                          achievement. The customer                                          materials that were used to develop the
                                                surplus products are available, the                                        acknowledged much has been learned                                 Provisional Formula Rates, is be
                                                charge is determined based on market                                       about the risks of power supply                                    available for inspection and copying at
                                                rates, plus administrative costs. The                                      management through drought periods.                                the Upper Great Plains Regional Office,
                                                customer will be responsible for                                           The customer encouraged WAPA to                                    located at 2900 4th Avenue North, 6th
                                                acquiring transmission service                                             work towards implementing a purchase                               Floor, Billings, Montana. Many of these
                                                necessary to deliver the product(s) for                                    power and wheeling strategy for                                    documents are also available on
                                                which a separate charge may be                                             WAPA’s unobligated balances to help                                WAPA’s Web site under the ‘‘2018 Firm
                                                incurred. WAPA is placing Rate                                             manage such risks in the future.                                   Rate Adjustment’’ section located at
                                                Schedule P-SED-M1 into effect for the 5-                                      Response: This rate reduction                                   https://www.wapa.gov/regions/UGP/
                                                year period beginning January 1, 2018,                                     rebalances the Base and Drought Adder                              rates/Pages/2018-firm-rate-
                                                through December 31, 2022.                                                 components. WAPA has also                                          adjustment.aspx.
                                                Basis for Rate Development                                                 determined that the voltage discount
                                                                                                                                                                                              RATEMAKING PROCEDURE
                                                                                                                           has served its purpose and now is no
                                                   WAPA is lowering the overall charges                                    longer needed. In its nearly 70 years of                           REQUIREMENTS
                                                for firm power service and firm peaking                                    application, the original intent of                                Environmental Compliance
                                                power service by 19 percent, by                                            reimbursing customers for relieving the
                                                reducing the Drought Adder component                                       BOR and then WAPA of transmission                                    In compliance with the National
                                                to zero, increasing the Base component,                                    facility construction costs has been met.                          Environmental Policy Act (NEPA) of
                                                and removing the voltage discount. The                                     The purchase power and wheeling                                    1969, 42 U.S.C. 4321–4347: the Council
                                                Provisional Formula Rates under Rate                                       strategy, as well as the use of                                    on Environmental Quality Regulations
                                                Schedules P-SED-F13 and P-SED-FP13                                         unobligated balances, are not directly                             for implementing NEPA (40 CFR parts
                                                will provide sufficient revenue to pay                                     related to this rate action. WAPA will,                            1500–1508): and DOE NEPA
                                                all annual costs, including interest                                       however, continue to complete an                                   Implementing Procedures and
                                                expense, and repay investments within                                      annual Drought Adder review that                                   Guidelines (10 CFR part 1021), WAPA
                                                the allowable periods.                                                     allows WAPA to be more responsive to                               has determined this action is
                                                                                                                           rate adjustments driven by drought                                 categorically excluded from preparing
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                                                Comments
                                                                                                                           periods. WAPA is committed to                                      an environmental assessment or an
                                                  WAPA received two comment letters                                        continuing to implement its purchase                               environmental impact statement. A
                                                and two oral comments during the                                           power and wheeling strategy and use of                             copy of the categorical exclusion
                                                public consultation and comment                                            unobligated balances in an open and                                determination is available on WAPA’s
                                                period. The comments expressed in                                          transparent manner.                                                Web site at http://www.wapa.gov/
                                                these letters have been paraphrased,                                          B. Comment: Multiple customer                                   regions/UGP/Environment/Documents/
                                                where appropriate, without                                                 representatives supported the rate                                 RateOrderWAPA-180.pdf.


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                                                57748                      Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices

                                                Determination Under Executive Order                     Dan Brouillette                                       Character
                                                12866                                                   Deputy Secretary of Energy
                                                                                                                                                                Alternating current, 60 hertz, three
                                                  WAPA has an exemption from                            Rate Schedule P-SED-F13                               phase, delivered and metered at the
                                                centralized regulatory review under                     (Supersedes Schedule P-SED-F12)                       voltages and points established by
                                                Executive Order 12866; accordingly, no                                                                        contract.
                                                clearance of this notice by the Office of               UNITED STATES DEPARTMENT OF
                                                Management and Budget is required.                      ENERGY                                                Formula Rate and Charge
                                                                                                        WESTERN AREA POWER                                    Components
                                                Submission to the Federal Energy                        ADMINISTRATION
                                                Regulatory Commission                                                                                         Rate = Base component + Drought
                                                                                                        UPPER GREAT PLAINS REGION                                  Adder component.
                                                   The Provisional Formula Rates herein
                                                                                                        Pick-Sloan Missouri Basin Program—                      Monthly Charge as of January 1,
                                                confirmed, approved, and placed into
                                                                                                        Eastern Division                                      2018, under the Rate:
                                                effect on an interim basis, together with
                                                supporting documents, will be                                                                                   CAPACITY CHARGE: $5.25 for each
                                                                                                        FIRM POWER SERVICE                                    kilowatt per month (kWmo) of billing
                                                submitted to FERC for confirmation and
                                                final approval.                                         (Approved Under Rate Order No.                        capacity.
                                                                                                        WAPA–180)                                               ENERGY CHARGE: 13.27 mills for
                                                ORDER                                                                                                         each kilowatt-hour (kWh) for all energy
                                                                                                        Effective
                                                  In view of the foregoing and under the                                                                      delivered as firm power service.
                                                authority delegated to me, I confirm and                  The first day of the first full billing               BILLING CAPACITY: The billing
                                                approve on an interim basis, effective on               period beginning on or after January 1,               capacity will be as defined by the power
                                                the first full billing period on or after               2018, through December 31, 2022, or                   sales contract.
                                                January 1, 2018, Rate Schedules P-SED-                  until superseded by another rate
                                                                                                                                                                Charge Components
                                                F13, P-SED-FP13, and P-SED-M1 for the                   schedule, whichever occurs earlier.
                                                                                                                                                                Base Component: A fixed revenue
                                                Pick-Sloan Missouri Basin Program—                      Available                                             requirement that includes operation and
                                                Eastern Division Project of the Western                                                                       maintenance expense, investments and
                                                                                                          Within the marketing area served by
                                                Area Power Administration. These rate                                                                         replacements, interest on investments
                                                                                                        the Eastern Division of the Pick-Sloan
                                                schedules shall remain in effect on an                                                                        and replacements, normal timing
                                                                                                        Missouri Basin Program; within
                                                interim basis, pending Federal Energy                                                                         purchase power (purchases due to
                                                                                                        Montana, North Dakota, South Dakota,
                                                Regulatory Commission’s confirmation                                                                          operational constraints, not associated
                                                                                                        Minnesota, Iowa, and Nebraska.
                                                and approval of the rate schedules or                                                                         with drought), and transmission costs.
                                                substitute rates on a final basis through               Applicable                                            Any proposed change to the Base
                                                December 31, 2022, or until superseded.                   To the power and energy delivered to                component will require a public
                                                   Dated: November 30, 2017                             customers as firm power service.                      process.




                                                  Drought Adder Component: A                            above timing purchases, previous                      deficits. The formulas, along with the
                                                formula-based revenue requirement that                  purchase power drought deficits, and                  charges under the formulas as of January
                                                includes future purchase power expense                  interest on the purchase power drought                1, 2018, are:




                                                  Annual Drought Adder                                  than the equivalent of 2 mills/kWh to                 change to the Drought Adder
                                                Adjustment Process:                                     the PRS composite rate will require a                 component charge, either incremental or
                                                  The Drought Adder may be adjusted                     public process.                                       decremental. If a Drought Adder
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                                                annually using the above formulas for                     The annual review process is initiated              component change is required, a
                                                any costs attributed to drought of less                 in early summer when WAPA reviews                     modified Drought Adder revenue
                                                                                                                                                                                                         EN07DE17.002</GPH>




                                                than or equal to the equivalent of 2                    the Drought Adder component and                       requirement and the associated charges
                                                mills/kWh to the Power Repayment                        provides notice of any estimated change               will become effective the following
                                                Study (PRS) composite rate. Any                         to the Drought Adder component charge                 January 1 and will be identified in a
                                                planned incremental upward                              under the formula. In October, WAPA                   Drought Adder modification update.
                                                                                                                                                              WAPA will inform customers of updates
                                                                                                                                                                                                         EN07DE17.001</GPH>




                                                adjustment to the Drought Adder greater                 will make a final determination of any


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                                                                           Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices                                          57749

                                                by letter and post updates to WAPA’s                    2018, through December 31, 2022, or                     13.27 mills for each kilowatt-hour
                                                external Web site.                                      until superseded by another rate                      (kWh) for all energy scheduled for
                                                   Adjustments:                                         schedule, whichever occurs earlier.                   delivery without return.
                                                   For Billing of Unauthorized Overruns:
                                                   For each billing period in which there               Available:                                              Charge Components:
                                                is a contract violation involving an                      Within the marketing area served by                   Base Component: A fixed revenue
                                                unauthorized overrun of the contractual                 the Eastern Division of the Pick-Sloan                requirement that includes operation and
                                                firm power and/or energy obligations,                   Missouri Basin Program; within                        maintenance expense, investments and
                                                such overrun shall be billed at 10 times                Montana, North Dakota, South Dakota,                  replacements, interest on investments
                                                the formula rate.                                       Minnesota, Iowa, and Nebraska.                        and replacements, normal timing
                                                   For Power Factor:                                                                                          purchase power (purchases due to
                                                   None. Customers will be required to                  Applicable:
                                                                                                                                                              operational constraints, not associated
                                                maintain a power factor at the point of                    To the power sold to customers as                  with drought), and transmission costs.
                                                delivery between 95-percent lagging and                 firm peaking power service.                           Any proposed change to the Base
                                                95-percent leading.
                                                Rate Schedule P-SED-FP13                                Character:                                            component will require a public
                                                (Supersedes Schedule P-SED-FP12)                          Alternating current, 60 hertz, three                process.
                                                UNITED STATES DEPARTMENT OF                             phase, delivered and metered at the
                                                ENERGY                                                  voltages and points established by
                                                                                                        contract.
                                                WESTERN AREA POWER
                                                ADMINISTRATION                                          Formula Rate and Charge Components:
                                                UPPER GREAT PLAINS REGION                               Rate = Base component + Drought
                                                Pick-Sloan Missouri Basin Program—                          Adder component
                                                Eastern Division                                          Monthly Charge as of January 1, 2018,
                                                                                                        under the Rate:
                                                FIRM PEAKING POWER SERVICE                                CAPACITY CHARGE:
                                                (Approved Under Rate Order No.                            $4.75 for each kilowatt per month
                                                WAPA–180)                                               (kWmo) of the effective contract rate of
                                                                                                        delivery for peaking power or the
                                                Effective:                                              maximum amount scheduled,
                                                  The first day of the first full billing               whichever is greater.
                                                period beginning on or after January 1,                   ENERGY CHARGE:




                                                  Drought Adder Component: A                            timing purchases, previous purchase                   The formulas, along with the charges
                                                formula-based revenue requirement that                  power drought deficits, and interest on               under the formulas as of January 1,
                                                includes future purchase power above                    the purchase power drought deficits.                  2018, are:




                                                  Annual Drought Adder Adjustment                       change to the Drought Adder                              Adjustments:
                                                Process:                                                component charge, either incremental or                  Billing for Unauthorized
                                                  The Drought Adder may be adjusted                     decremental. If a Drought Adder                       Overruns:
                                                annually using the above formulas for                   component change is required, a
                                                                                                        modified Drought Adder revenue                           For each billing period in which there
                                                any costs attributed to drought of less
                                                                                                        requirement and the associated charges                is a contract violation involving an
                                                than or equal to the equivalent of 2
                                                mills/kWh to the Power Repayment                        will become effective the following                   unauthorized overrun of the contractual
                                                Study (PRS) composite rate. Any                         January 1 and will be identified in a                 obligation for peaking capacity and/or
                                                planned incremental upward                              Drought Adder modification update.                    energy, such overrun shall be billed at
                                                adjustment to the Drought Adder greater                 WAPA will inform customers of updates                 10 times the above rate.
                                                than the equivalent of 2 mills/kWh to                   by letter and post updates to WAPA’s                  Rate Schedule P-SED-M1
                                                the PRS composite rate will require a                   external Web site.
                                                public process.                                           BILLING CAPACITY:
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                                                  The annual review process is initiated                  The billing capacity will be the
                                                in early summer when WAPA reviews                       greater of (1) the highest 30-minute
                                                                                                                                                                                                          EN07DE17.006</GPH>




                                                the Drought Adder component and                         integrated capacity measured during the
                                                provides notice of any estimated change                 month up to, but not in excess of, the
                                                to the Drought Adder component charge                   delivery obligation under the power
                                                under the formula. In October, WAPA                     sales contract, or (2) the contract rate of
                                                                                                                                                                                                          EN07DE17.005</GPH>




                                                will make a final determination of any                  delivery.


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                                                57750                      Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices

                                                UNITED STATES DEPARTMENT OF                             River) for its Steel Mill. Title V         operating permit issued on September
                                                ENERGY                                                  operating permit number 2305–AOP–R0        18, 2013, to Big River Steel, LLC located
                                                WESTERN AREA POWER                                      was issued on September 18, 2013, by       in Osceola, Mississippi County,
                                                ADMINISTRATION                                          the ADEQ to Big River for a new steel      Arkansas.
                                                                                                        mill in Osceola, Mississippi County,          The Petitioner requests that the
                                                UPPER GREAT PLAINS REGION                               Arkansas. EPA’s October 31, 2017,          Administrator object to the proposed
                                                PICK-SLOAN MISSOURI BASIN                               Order responds to a petition submitted     operating permit issued by the ADEQ to
                                                PROGRAM—EASTERN DIVISION                                on October 9, 2013 by the Nucor Steel-     Big River based on twelve claims. The
                                                                                                        Arkansas and Nucor-Yamato Steel            claims are described in detail in Section
                                                SALE OF SURPLUS PRODUCTS                                Company (the Petitioners), pursuant to     IV of the Order. In summary, the issues
                                                (Approved Under Rate Order No.                          the Clean Air Act (CAA or Act). The Act    raised are that: (1) ADEQ conducted an
                                                WAPA–180)                                               provides that a petitioner may ask for     inadequate review of background air
                                                                                                        judicial review of those portions of the   quality data; (2) the PM2.5 modeling is
                                                Effective:                                              Orders that deny objections raised in the  deficient because it excluded certain
                                                  The first day of the first full billing               petitions in the appropriate United        areas from the analysis; (3) the PM2.5
                                                period beginning on or after January 1,                 States Court of Appeals. Any petition      modeling is deficient because ADEQ
                                                2018, through December 31, 2022, or                     for review shall be filed within 60 days   failed to include secondary formation of
                                                until superseded by another rate                        from the date this notice appears in the   PM2.5, and instead only included PM2.5
                                                schedule, whichever occurs earlier.                     Federal Register, pursuant to the Act.     directly emitted by the facility; (4)
                                                                                                        ADDRESSES: You may review copies of        ADEQ’S air quality impacts analysis for
                                                Applicable:                                             the final Order, the petition, and other   PM2.5 NAAQS was inadequate because
                                                  This rate schedule applies to Eastern                 supporting information at EPA Region 6,    there are discrepancies among different
                                                Division of the Pick-Sloan Missouri                     1445 Ross Avenue, Dallas, Texas 75202–     modeled PM2.5 annual impact values in
                                                Basin Program marketing and is                          2733.                                      or associated with the PM2.5 modeling.;
                                                applicable to the sale of the following P-                EPA requests that if at all possible,    (5) ADEQ and Big River failed to
                                                SMBP—ED surplus energy and capacity                     you contact the individual listed in the   properly carry out an additional impacts
                                                products; energy, frequency response,                   FOR FURTHER INFORMATION CONTACT            analysis; (6) the emission factors for
                                                regulation, and reserves. If any P-                     section to view copies of the final Order, natural gas combustion used to issue the
                                                SMBP—ED surplus energy and capacity                     petition, and other supporting             Draft Permit are conflicting; (7) Big
                                                products are available, UGP can make                    information. You may view the hard         River did not adequately demonstrate
                                                the product(s) available for sale,                      copies Monday through Friday, from         the basis for its proposed PM2.5 emission
                                                providing entities enter into a separate                9:00 a.m. to 3:00 p.m., excluding          factors; (8) the Big River facility design
                                                agreement(s) with UGP Marketing Office                  Federal holidays. If you wish to           was incomplete in critical ways that
                                                which will specify the terms of sale(s).                examine these documents, you should        affected the validity of air quality
                                                                                                        make an appointment at least 24 hours      modeling; (9) the permit does not
                                                Formula Rate:                                           before the visiting day. Additionally, the contain enforceable permit conditions
                                                  The charge for each product is                        final October 31, 2017, Order is           that lead to compliance; (10) the Permit
                                                determined at the time of the sale based                available electronically at: https://      does not contain adequate monitoring,
                                                on market rates, plus administrative                    www.epa.gov/sites/production/files/        recordkeeping, and reporting
                                                costs. The customer will be responsible                 2017-10/documents/big_river_steel_         requirements to comply with the
                                                for acquiring transmission services                     response2013.pdf.                          requirements of 40 CFR 70.6(a)(3)(i)(B)
                                                necessary to deliver the product(s), for                FOR FURTHER INFORMATION CONTACT:           because it does not provide for a test
                                                which a separate charge may be                          Dinesh Senghani at (214) 665–7221,         method; (11) the Permit does not
                                                incurred.                                               email address: senghani.dinesh@epa.gov appropriately establish BACT
                                                [FR Doc. 2017–26376 Filed 12–6–17; 8:45 am]             or the above EPA, Region 6 address.        requirements; and (12) ADEQ’s Draft
                                                BILLING CODE 6450–01–P                                  SUPPLEMENTARY INFORMATION: The CAA         Permit does not comply with public
                                                                                                        affords EPA a 45-day period to review,     notice and participation requirements.
                                                                                                        and object, as appropriate, to a title V   The Order issued on October 31, 2017,
                                                ENVIRONMENTAL PROTECTION                                operating permit proposed by a state       responds to the Petition and explains
                                                AGENCY                                                  permitting authority. Sections 307(b)      the basis for EPA’s decision.
                                                                                                        and 505(b)(2) of the CAA, 42 U.S.C.           Dated: December 1, 2017.
                                                [FRL–9970–84–Region 6]
                                                                                                        7661d(b)(2), and 40 CFR 70.8(d)            Samuel Coleman,
                                                Clean Air Act Operating Permit                          authorizes any person to petition the      Acting Regional Administrator, Region 6.
                                                Program; Petitions for Objection to                     EPA Administrator, within 60 days after [FR Doc. 2017–26400 Filed 12–6–17; 8:45 am]
                                                State Operating Permit for Big River                    the expiration of this review period, to   BILLING CODE 6560–50–P
                                                Steel, LLC, Osceola, Arkansas                           object to a title V operating permit if
                                                                                                        EPA has not done so. Petitions must be
                                                AGENCY: Environmental Protection                        based only on objections to the permit
                                                Agency (EPA).                                           that were raised with reasonable           FARM CREDIT ADMINISTRATION
                                                ACTION: Notice of final action.                         specificity during the public comment      Sunshine Act Meeting; Farm Credit
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                                                                                                        period provided by the state, unless the   Administration Board
                                                SUMMARY:   Pursuant to the Clean Air Act                petitioner demonstrates that it was
                                                (CAA), the EPA Administrator signed an                  impracticable to raise these issues        AGENCY: Farm Credit Administration.
                                                Order, dated October 31, 2017, denying                  during the comment period or unless        ACTION: Notice, regular meeting.
                                                a petition asking EPA to object to the                  the grounds for the issue arose after this
                                                operating permit issued by the Arkansas                 period.                                    SUMMARY: Notice is hereby given,
                                                Department of Environmental Quality                        EPA received the petition from the      pursuant to the Government in the
                                                (ADEQ) to Big River Steel, LLC (Big                     Petitioners on October 9, 2013, for the    Sunshine Act, of the regular meeting of


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Document Created: 2017-12-07 00:34:52
Document Modified: 2017-12-07 00:34:52
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of order concerning firm power, firm peaking power, and sale of surplus product formula rates.
DatesThe Rate Schedules P-SED-F13, P-SED-FP13, and P-SED-M1 are effective on the first day of the first full billing period beginning on or after January 1, 2018, and will remain in effect through December 31, 2022, pending confirmation and approval by Federal Energy Regulatory Commission (FERC) on a final basis or until superseded.
ContactMr. Jody S. Sundsted, Acting Regional Manager, Upper Great Plains Region, Western Area Power Administration, 2900 4th Avenue North, Billings, MT 59101-1266, telephone (406) 255- 2800, or Ms. Linda Cady-Hoffman, Rates Manager, Upper Great Plains Region, Western Area Power Administration, 2900 4th Avenue North, Billings, MT 59101-1266, telephone (406) 255-2920, email [email protected]
FR Citation82 FR 57742 

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