82_FR_839 82 FR 837 - Integrated System Rate Schedule

82 FR 837 - Integrated System Rate Schedule

DEPARTMENT OF ENERGY
Southwestern Power Administration

Federal Register Volume 82, Issue 2 (January 4, 2017)

Page Range837-839
FR Document2016-31885

The Deputy Secretary has approved and placed into effect on an interim basis Rate Order No. SWPA-71, which provides the following Integrated System Non-Federal Transmission Service (NFTS) Rate Schedule: Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission Service.

Federal Register, Volume 82 Issue 2 (Wednesday, January 4, 2017)
[Federal Register Volume 82, Number 2 (Wednesday, January 4, 2017)]
[Notices]
[Pages 837-839]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31885]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Rate Schedule

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: The Deputy Secretary has approved and placed into effect on an 
interim basis Rate Order No. SWPA-71, which provides the following 
Integrated System Non-Federal Transmission Service (NFTS) Rate 
Schedule: Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal 
Transmission Service.

FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice 
President, Chief Operating Officer, Office of Corporate Operations, 
Southwestern Power Administration, U.S. Department of Energy, One West 
Third Street, Tulsa, Oklahoma 74103, (918) 595-6646, 
[email protected], or facsimile transmission (918) 595-6646.

SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00-
037.00A, effective October 25, 2013, and 00-001.00F, effective November 
17, 2014, Rate Order No. SWPA-71, is approved and placed into effect on 
an interim basis for the period January 1, 2017, through September 30, 
2017, pursuant to the following rate schedule: Rate Schedule NFTS-13A, 
Wholesale Rates for Non-Federal Transmission Service, which supersedes 
the existing Rate Schedule NFTS-13, Wholesale Rates for Non-Federal 
Transmission Service.
    Southwestern Power Administration's (Southwestern) Administrator 
has determined that an additional section within Southwestern's 
Integrated System NFTS Rate Schedule is necessary to better align 
Southwestern's rate schedule with standard practices utilized by the 
Southwest Power Pool, Inc. (SPP) Regional Transmission Organization. 
The new section 2.3.6 establishes a procedure for determining an Annual 
Revenue Requirement (ARR) for customers that choose to contract for 
Network Integration Transmission Service (NITS) on Southwestern's 
transmission system pursuant to the SPP Open Access Transmission Tariff 
(OATT).
    The NFTS-13 Rate Schedule included a stated rate for NITS that is 
calculated by dividing Southwestern's monthly revenue requirement, 
derived from Southwestern's NFTS ARR identified within the Southwestern 
2013 Integrated System Power Repayment Studies (PRS), by the net 
transmission capacity available for NITS. Modifying Southwestern's rate 
schedule to include an ARR for SPP NITS, rather than applying a stated 
rate better aligns with standard practices utilized by SPP. Therefore, 
in place of applying the NITS stated rate for SPP NITS on 
Southwestern's transmission system, the proposed Section 2.3.6 includes 
a procedure for determining and updating an SPP NITS ARR, as a portion 
of Southwestern's NFTS ARR, based on the amount of revenue assumed to 
be recovered on an annual basis from NITS customers in each approved 
PRS. If additional customers choose to contract for SPP NITS on 
Southwestern's transmission system, the new Section 2.3.6 methodology 
updates the SPP NITS ARR. The title of the NFTS-13 Rate Schedule was 
changed to NFTS-13A to reflect the addition of Section 2.3.6.
    The Southwestern 2013 PRS indicated that rates (total Southwestern 
NFTS ARR) prescribed by NFTS-13, Wholesale Rates for Non-Federal 
Transmission Service, as approved in Docket No. EF14-1-000, for the 
period October 1, 2013, through September 30, 2017, are sufficient to 
meet repayment criteria and will have no impact on the amortization or 
status of repayment forecasted in the Southwestern 2013 PRS and will 
not require rate changes. Revenues based on current rates remain 
sufficient to meet repayment criteria.
    The Southwestern Administrator has followed Title 10, Part 903, 
Subpart A of the Code of Federal Regulations, ``Procedures for Public 
Participation in Power and Transmission Rate Adjustments and 
Extensions,'' in connection with the rate schedule revisions. The 
public was advised by notice published in the Federal Register (81 FR 
75814), November 1, 2016, of the proposed rate schedule change and of 
the opportunity to provide written comments for a period of 30 days 
ending December 1, 2016. One customer provided comments during the 
period of public participation related to the proposed rate schedule 
change, which consisted of some clarifying questions that Southwestern 
answered and one comment on phrasing that Southwestern acknowledged.
    Information regarding this rate proposal, including studies and 
other supporting material, and comments received is available for 
public review in the offices of Southwestern Power Administration, 
Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103. 
Following review of Southwestern's proposal within the Department of 
Energy, I approve Rate Order No. SWPA-71.


[[Page 838]]


    Dated: December 23, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary.

United States of America

Department of Energy

Deputy Secretary

    In the matter of: Southwestern Power Administration Integrated 
System Non-Federal Transmission Service Rate Schedule

Rate Order No. SWPA-71

ORDER CONFIRMING, APPROVING AND PLACING REVISED POWER RATE SCHEDULES IN 
EFFECT ON AN INTERIM BASIS

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95[dash]91, the functions of the Secretary 
of the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern 
Power Administration (Southwestern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 00-037.00A, the 
Secretary of Energy delegated to the Administrator of Southwestern the 
authority to develop power and transmission rates, delegated to the 
Deputy Secretary of the Department of Energy the authority to confirm, 
approve, and place in effect such rates on an interim basis and 
delegated to the Federal Energy Regulatory Commission (FERC) the 
authority to confirm and approve on a final basis or to disapprove 
rates developed by the Administrator under the delegation. Pursuant to 
that delegated authority, the Deputy Secretary has issued this interim 
rate order.

BACKGROUND

    In July 2013, Southwestern completed its review of the adequacy of 
the current rate schedules for the Integrated System and finalized its 
2013 Power Repayment Studies (2013 PRS). The studies indicated that the 
proposed rates would meet cost recovery criteria for the Integrated 
System, including the identified Non-Federal Transmission Service 
(NFTS) Annual Revenue Requirement (ARR). The Federal Energy Regulatory 
Commission (FERC) confirmation and approval of the following Integrated 
System rate schedules was provided in a FERC order issued in Docket No. 
EF14-1-000 on January 9, 2014,\1\ for the period October 1, 2013, 
through September 30, 2017:
---------------------------------------------------------------------------

    \1\ 146 FERC ]62,016
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Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13, Wholesale Rates for Point-to-Point and Network 
Transmission Service
Rate Schedule EE-13, Wholesale Rate for Excess Energy
Based on operations under the approved rate schedules, the 
Administrator determined that an additional section outlining a new 
methodology within Southwestern's Integrated System Non-Federal 
Transmission Service (NFTS-13) Rate Schedule is necessary to better 
align Southwestern's rate schedule with standard practices utilized by 
the Southwest Power Pool, Inc. (SPP) Regional Transmission 
Organization. A new section 2.3.6 is proposed that establishes a 
procedure for determining an ARR for customers that choose to contract 
for Network Integration Transmission Service (NITS) on Southwestern's 
transmission system pursuant to the SPP Open Access Transmission Tariff 
(OATT).
    The new Section 2.3.6 does not change Southwestern's NFTS ARR, as 
determined in its 2013 PRS, but rather replaces the current stated-rate 
for SPP NITS with a revenue-requirement based methodology that includes 
determining the SPP NITS ARR portion of Southwestern's NFTS ARR. 
Furthermore, the new Section 2.3.6 affects only those customers that 
choose to contract for SPP NITS on Southwestern's transmission system 
under the SPP OATT.
    The designation of the aforementioned rate schedule has been 
revised from NFTS-13 to NFTS-13A to reflect that an addition has been 
made.
    Southwestern followed Title 10, Part 903 Subpart A, of the Code of 
Federal Regulations, ``Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions'' (Part 903) in connection 
with the proposed Rate Schedule NFTS[dash]13A. An opportunity for 
customers and other interested members of the public to review and 
comment on the proposed rate schedule was announced by notice published 
in the Federal Register November 1, 2016, (81 FR 75814), with written 
comments due by December 1, 2016. One customer provided comments during 
the period of public participation related to the proposed rate 
schedule change, which consisted of some clarifying questions that 
Southwestern answered and one comment on phrasing that Southwestern 
acknowledged.

DISCUSSION

    The NFTS-13 Rate Schedule includes a stated rate for NITS that is 
calculated by dividing Southwestern's monthly revenue requirement, 
derived from Southwestern's NFTS ARR identified within the 2013 PRS, by 
the net transmission capacity available for NITS. Modifying 
Southwestern's rate schedule to include an ARR for SPP NITS, rather 
than applying a stated rate, better aligns with standard practices 
utilized by SPP. Therefore, in place of applying the NITS stated rate 
for SPP NITS on Southwestern's transmission system, the new Section 
2.3.6 in NFTS-13A includes a procedure for determining and updating an 
SPP NITS ARR, as a portion of Southwestern's NFTS ARR, based on the 
amount of revenue assumed to be recovered on an annual basis from NITS 
customers in each approved PRS. If additional customers choose to 
contract for SPP NITS on Southwestern's transmission system, the 
proposed Section 2.3.6 methodology updates the SPP NITS ARR.

COMMENTS AND RESPONSES

    Southwestern received comments from one customer during the period 
of public participation related to the proposed rate schedule change, 
which consisted of some clarifying questions that Southwestern answered 
and one comment on phrasing that Southwestern acknowledged. 
Southwestern made no change to the proposed rate schedule as a result 
of the questions and comment received. The questions and comment, with 
Southwestern's responses in underlined text, are detailed below.

Questions:

    1. Will NITS for delivery to loads within Southwestern's system 
only be available under the terms of the SPP OATT? Yes, for new 
transmission service. Additionally, as current Southwestern 
transmission service agreements expire (for grandfathered service or 
service under Southwestern's OATT), they will not be renewed; so if 
continued service is desired, it would be under a new SPP OATT 
agreement.
    If not, under what conditions may a customer elect to take 
Southwestern NITS? Per Southwestern's agreement with SPP, which is 
filed as Attachment AD of the SPP OATT, new Southwestern OATT NITS 
agreements will not be entered into.
    2. Approximately how many MWs of Southwestern NITS Capacity are 
currently reserved? 66 MW is currently reserved as NITS under both the 
Southwestern and SPP OATTs.
    3. Will current Southwestern NITS customers be allowed to renew 
their Southwestern NITS Agreement(s), or will they transition to SPP 
NITS? As current Southwestern transmission service agreements expire 
(for

[[Page 839]]

grandfathered service or service under Southwestern's OATT), they will 
not be renewed; so if continued service is desired, it would be under a 
new SPP OATT agreement, per SPP OATT Attachment AD.
    4. Do you expect Section 2.3.5. to apply to both SPP NITS and 
Southwestern NITS? I believe the peak billing demand methodology is 
different. Section 2.3.5 applies to Southwestern NITS only. The new 
Section 2.3.6 applies to SPP NITS only.
    5. My understanding is that SPP bills NITS load on a 12CP basis, 
whereas, Southwestern bills NITS load on a 1CP basis (per 2.3.5). Is it 
correct that NITS Transmission Customers on Southwestern's system will 
pay less for SPP NITS service than for equivalent Southwestern NITS 
service? Southwestern NITS customers are billed on a 1 CP basis and SPP 
NITS customers are billed on 12 CP basis, both in accordance with their 
respective OATT's.
    As to whether or not SPP NITS will cost less than Southwestern 
NITS, several factors will have to be assessed to make that 
determination, including the entities' proportion of load at the time 
of the monthly CP and the amount of transmission service reserved that 
was transitioned to SPP NITS (per the proposed Section 2.3.6). 
Additionally, entities choosing to utilize SPP NITS will be subject to 
various SPP charges (i.e. Schedule 11) that may add cost to the SPP 
NITS. The analysis of these costs can only be determined by the 
particular customer and their unique set of circumstances. Therefore, a 
statement that conveys certainty of a lower cost for SPP NITS cannot be 
made.

Comment:

    1. There are several general references in the proposed NFTS-13A to 
Network Integration Transmission Service. In a few instances, the 
document refers to SPP NITS or Southwestern NITS. I think it would be 
good to clarify in each instance if we are referring to SPP NITS, 
Southwestern NITS, or both. Comment acknowledged. We will review the 
language and ensure the final rate schedule has clarity between SPP 
NITS and Southwestern NITS.

AVAILABILITY OF INFORMATION

    Information regarding this rate schedule change is available for 
public review in the offices of Southwestern Power Administration, 
Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103.

ADMINISTRATOR'S CERTIFICATION

    The revised rate schedule will repay all costs of the Integrated 
System including amortization of the power investment consistent with 
the provisions of Department of Energy Order No. RA 6120.2. In 
accordance with Delegation Order Nos. 00-037.00A, effective October 25, 
2013, and 00-001.00F, effective November 17, 2014, and Section 5 of the 
Flood Control Act of 1944, the Administrator has determined that the 
proposed Integrated System rate schedule is consistent with applicable 
law and the lowest possible rates consistent with sound business 
principles.

ENVIRONMENT

    The Southwestern NEPA Compliance Officer determined that the 
currently-approved Integrated System rates fall within the class of 
actions that are categorically excluded from the requirements of 
preparing either an Environmental Impact Statement or an Environmental 
Assessment. No additional evaluation of the environmental impact of the 
proposed rate schedule changes was conducted because no change in 
anticipated revenues was contemplated.

ADMINISTRATIVE PROCEDURES

    The Administrative Procedure Act (5 U.S.C. 553(d)) (APA) prescribes 
that the required publication or service of a substantive rule shall be 
made not less than 30 days before its effective date, except (1) a 
substantive rule that grants or recognizes an exemption or relieves a 
restriction; (2) interpretative rules and statements of policy; or (3) 
as otherwise provided by the agency for good cause found and published 
with the rule. For the reasons stated in the paragraph that follows, 
the Department of Energy (DOE) finds good cause to waive the 30-day 
delay in effective date because a 30-day delay would be unnecessary.
    In this action, Southwestern updates the method for charging non-
Federal transmission customers who choose to contract for SPP NITS on 
Southwestern's transmission system under the SPP OATT from a stated 
rate to a revenue-requirement based charge, to better align with 
standard practices utilized by SPP. Because the NFTS-13A rate schedule 
change will result in no change in anticipated revenues, it is 
considered a ``minor rate adjustment'' pursuant to 10 CFR part 903, 
subpart A, and Southwestern has treated it as such in the rate schedule 
actions to date. A ``minor rate adjustment'' is defined as a rate 
adjustment that (1) will produce less than 1 percent change in the 
annual revenues of the power system; or (2) is for a power system that 
has either annual sales normally less than 100 million kilowatt hours 
or an installed capacity of less than 20,000 kilowatts. When consistent 
with the APA, DOE regulations also provide that the effective date of 
rate schedules put into effect on an interim basis by the Deputy 
Secretary may be sooner than 30 days after the Deputy Secretary's 
decision when making a minor rate adjustment.
    Additionally, DOE emphasizes that there were no substantive issues 
or concerns raised during the public comment period for the NFTS-13A 
rate schedule action.

ORDER

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm, approve and place in 
effect on an interim basis, effective January 1, 2017, the Southwestern 
Integrated System Rate Schedule NFTS-13A which shall remain in effect 
on an interim basis through September 30, 2017, or until the FERC 
confirms and approves the rates on a final basis.
    Dated: December 23, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary.

[FR Doc. 2016-31885 Filed 1-3-17; 8:45 am]
BILLING CODE 6450-01-P



                                                                                     Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices                                                         837

                                                                                                        ESTIMATED ANNUAL BURDEN FOR GENERIC CLEARANCE
                                                                                                                                                                                                Average
                                                                                                                                                          Number of
                                                                                                                                       Number of                           Total number         burden      Total burden
                                                                                                                                                        responses per
                                                                                                                                      respondents                          of responses       minutes per      hours
                                                                                                                                                          respondent                           response

                                                                                                                                          (1)                  (2)         (1) * (2) = (3)        (4)       (3) * (4) = (5)

                                                  Generic Clearance ...............................................................     15,000                  1             15,000              6            3 1,500




                                                    Comments: Comments are invited on:                               and placed into effect on an interim                    13A to reflect the addition of Section
                                                  (1) Whether the collection of                                      basis for the period January 1, 2017,                   2.3.6.
                                                  information is necessary for the proper                            through September 30, 2017, pursuant                       The Southwestern 2013 PRS indicated
                                                  performance of the functions of the                                to the following rate schedule: Rate                    that rates (total Southwestern NFTS
                                                  Commission, including whether the                                  Schedule NFTS–13A, Wholesale Rates                      ARR) prescribed by NFTS–13,
                                                  information will have practical utility;                           for Non-Federal Transmission Service,                   Wholesale Rates for Non-Federal
                                                  (2) the accuracy of the agency’s estimate                          which supersedes the existing Rate
                                                  of the burden and cost of the collection                                                                                   Transmission Service, as approved in
                                                                                                                     Schedule NFTS–13, Wholesale Rates for
                                                  of information, including the validity of                                                                                  Docket No. EF14–1–000, for the period
                                                                                                                     Non-Federal Transmission Service.
                                                  the methodology and assumptions used;                                                                                      October 1, 2013, through September 30,
                                                                                                                        Southwestern Power Administration’s                  2017, are sufficient to meet repayment
                                                  (3) ways to enhance the quality, utility
                                                                                                                     (Southwestern) Administrator has                        criteria and will have no impact on the
                                                  and clarity of the information collection;
                                                  and (4) ways to minimize the burden of                             determined that an additional section                   amortization or status of repayment
                                                  the collection of information on those                             within Southwestern’s Integrated                        forecasted in the Southwestern 2013
                                                  who are to respond, including the use                              System NFTS Rate Schedule is                            PRS and will not require rate changes.
                                                  of automated collection techniques or                              necessary to better align Southwestern’s                Revenues based on current rates remain
                                                  other forms of information technology.                             rate schedule with standard practices                   sufficient to meet repayment criteria.
                                                                                                                     utilized by the Southwest Power Pool,
                                                    Dated: December 23, 2016.                                        Inc. (SPP) Regional Transmission                           The Southwestern Administrator has
                                                  Nathaniel J. Davis, Sr.,                                           Organization. The new section 2.3.6                     followed Title 10, Part 903, Subpart A
                                                  Deputy Secretary.                                                  establishes a procedure for determining                 of the Code of Federal Regulations,
                                                  [FR Doc. 2016–31662 Filed 1–3–17; 8:45 am]                         an Annual Revenue Requirement (ARR)                     ‘‘Procedures for Public Participation in
                                                  BILLING CODE 6717–01–P                                             for customers that choose to contract for               Power and Transmission Rate
                                                                                                                     Network Integration Transmission                        Adjustments and Extensions,’’ in
                                                                                                                     Service (NITS) on Southwestern’s                        connection with the rate schedule
                                                  DEPARTMENT OF ENERGY                                               transmission system pursuant to the                     revisions. The public was advised by
                                                                                                                     SPP Open Access Transmission Tariff                     notice published in the Federal Register
                                                  Southwestern Power Administration
                                                                                                                     (OATT).                                                 (81 FR 75814), November 1, 2016, of the
                                                  Integrated System Rate Schedule                                       The NFTS–13 Rate Schedule included                   proposed rate schedule change and of
                                                                                                                     a stated rate for NITS that is calculated               the opportunity to provide written
                                                  AGENCY: Southwestern Power                                                                                                 comments for a period of 30 days
                                                  Administration, DOE.                                               by dividing Southwestern’s monthly
                                                                                                                     revenue requirement, derived from                       ending December 1, 2016. One customer
                                                  ACTION: Notice of Rate Order.                                                                                              provided comments during the period of
                                                                                                                     Southwestern’s NFTS ARR identified
                                                  SUMMARY:   The Deputy Secretary has                                within the Southwestern 2013                            public participation related to the
                                                  approved and placed into effect on an                              Integrated System Power Repayment                       proposed rate schedule change, which
                                                  interim basis Rate Order No. SWPA–71,                              Studies (PRS), by the net transmission                  consisted of some clarifying questions
                                                  which provides the following Integrated                            capacity available for NITS. Modifying                  that Southwestern answered and one
                                                  System Non-Federal Transmission                                    Southwestern’s rate schedule to include                 comment on phrasing that Southwestern
                                                  Service (NFTS) Rate Schedule: Rate                                 an ARR for SPP NITS, rather than                        acknowledged.
                                                  Schedule NFTS–13A, Wholesale Rates                                 applying a stated rate better aligns with                  Information regarding this rate
                                                  for Non-Federal Transmission Service.                              standard practices utilized by SPP.                     proposal, including studies and other
                                                  FOR FURTHER INFORMATION CONTACT: Mr.                               Therefore, in place of applying the NITS                supporting material, and comments
                                                  Marshall Boyken, Senior Vice President,                            stated rate for SPP NITS on                             received is available for public review
                                                  Chief Operating Officer, Office of                                 Southwestern’s transmission system, the                 in the offices of Southwestern Power
                                                  Corporate Operations, Southwestern                                 proposed Section 2.3.6 includes a
                                                                                                                                                                             Administration, Williams Tower I, One
                                                  Power Administration, U.S. Department                              procedure for determining and updating
                                                                                                                                                                             West Third Street, Tulsa, Oklahoma
                                                  of Energy, One West Third Street, Tulsa,                           an SPP NITS ARR, as a portion of
                                                                                                                                                                             74103. Following review of
                                                  Oklahoma 74103, (918) 595–6646,                                    Southwestern’s NFTS ARR, based on
                                                                                                                                                                             Southwestern’s proposal within the
                                                  marshall.boyken@swpa.gov, or facsimile                             the amount of revenue assumed to be
                                                  transmission (918) 595–6646.                                       recovered on an annual basis from NITS                  Department of Energy, I approve Rate
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                                     customers in each approved PRS. If                      Order No. SWPA–71.
                                                  SUPPLEMENTARY INFORMATION: Pursuant
                                                  to Delegation Order Nos. 00–037.00A,                               additional customers choose to contract
                                                  effective October 25, 2013, and 00–                                for SPP NITS on Southwestern’s
                                                  001.00F, effective November 17, 2014,                              transmission system, the new Section
                                                  Rate Order No. SWPA–71, is approved                                2.3.6 methodology updates the SPP
                                                                                                                     NITS ARR. The title of the NFTS–13
                                                    2 1,500   hours = 90,000 minutes.                                Rate Schedule was changed to NFTS–


                                             VerDate Sep<11>2014       16:46 Jan 03, 2017      Jkt 241001     PO 00000      Frm 00023   Fmt 4703   Sfmt 4703   E:\FR\FM\04JAN1.SGM   04JAN1


                                                  838                           Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices

                                                    Dated: December 23, 2016.                              Rate Schedule NFTS–13, Wholesale                       Southwestern’s NFTS ARR identified
                                                  Elizabeth Sherwood-Randall,                                 Rates for Point-to-Point and Network                within the 2013 PRS, by the net
                                                  Deputy Secretary.                                           Transmission Service                                transmission capacity available for
                                                                                                           Rate Schedule EE–13, Wholesale Rate                    NITS. Modifying Southwestern’s rate
                                                  United States of America                                    for Excess Energy                                   schedule to include an ARR for SPP
                                                  Department of Energy                                     Based on operations under the approved                 NITS, rather than applying a stated rate,
                                                                                                           rate schedules, the Administrator                      better aligns with standard practices
                                                  Deputy Secretary                                         determined that an additional section                  utilized by SPP. Therefore, in place of
                                                    In the matter of: Southwestern Power                   outlining a new methodology within                     applying the NITS stated rate for SPP
                                                  Administration Integrated System Non-                    Southwestern’s Integrated System Non-                  NITS on Southwestern’s transmission
                                                  Federal Transmission Service Rate Schedule               Federal Transmission Service (NFTS–                    system, the new Section 2.3.6 in NFTS–
                                                  Rate Order No. SWPA–71                                   13) Rate Schedule is necessary to better               13A includes a procedure for
                                                                                                           align Southwestern’s rate schedule with                determining and updating an SPP NITS
                                                  ORDER CONFIRMING, APPROVING                              standard practices utilized by the                     ARR, as a portion of Southwestern’s
                                                  AND PLACING REVISED POWER                                Southwest Power Pool, Inc. (SPP)                       NFTS ARR, based on the amount of
                                                  RATE SCHEDULES IN EFFECT ON AN                           Regional Transmission Organization. A                  revenue assumed to be recovered on an
                                                  INTERIM BASIS                                            new section 2.3.6 is proposed that                     annual basis from NITS customers in
                                                     Pursuant to Sections 302(a) and                       establishes a procedure for determining                each approved PRS. If additional
                                                  301(b) of the Department of Energy                       an ARR for customers that choose to                    customers choose to contract for SPP
                                                  Organization Act, Public Law 95-91, the                  contract for Network Integration                       NITS on Southwestern’s transmission
                                                  functions of the Secretary of the Interior               Transmission Service (NITS) on                         system, the proposed Section 2.3.6
                                                  and the Federal Power Commission                         Southwestern’s transmission system                     methodology updates the SPP NITS
                                                  under Section 5 of the Flood Control                     pursuant to the SPP Open Access                        ARR.
                                                  Act of 1944, 16 U.S.C. 825s, relating to                 Transmission Tariff (OATT).
                                                                                                              The new Section 2.3.6 does not                      COMMENTS AND RESPONSES
                                                  the Southwestern Power Administration
                                                  (Southwestern) were transferred to and                   change Southwestern’s NFTS ARR, as                        Southwestern received comments
                                                  vested in the Secretary of Energy. By                    determined in its 2013 PRS, but rather                 from one customer during the period of
                                                  Delegation Order No. 00–037.00A, the                     replaces the current stated-rate for SPP               public participation related to the
                                                  Secretary of Energy delegated to the                     NITS with a revenue-requirement based                  proposed rate schedule change, which
                                                  Administrator of Southwestern the                        methodology that includes determining                  consisted of some clarifying questions
                                                  authority to develop power and                           the SPP NITS ARR portion of                            that Southwestern answered and one
                                                  transmission rates, delegated to the                     Southwestern’s NFTS ARR.                               comment on phrasing that Southwestern
                                                  Deputy Secretary of the Department of                    Furthermore, the new Section 2.3.6                     acknowledged. Southwestern made no
                                                  Energy the authority to confirm,                         affects only those customers that choose               change to the proposed rate schedule as
                                                  approve, and place in effect such rates                  to contract for SPP NITS on                            a result of the questions and comment
                                                  on an interim basis and delegated to the                 Southwestern’s transmission system                     received. The questions and comment,
                                                  Federal Energy Regulatory Commission                     under the SPP OATT.                                    with Southwestern’s responses in
                                                                                                              The designation of the                              underlined text, are detailed below.
                                                  (FERC) the authority to confirm and
                                                                                                           aforementioned rate schedule has been
                                                  approve on a final basis or to disapprove                                                                       Questions:
                                                                                                           revised from NFTS–13 to NFTS–13A to
                                                  rates developed by the Administrator
                                                                                                           reflect that an addition has been made.                  1. Will NITS for delivery to loads
                                                  under the delegation. Pursuant to that
                                                                                                              Southwestern followed Title 10, Part                within Southwestern’s system only be
                                                  delegated authority, the Deputy
                                                                                                           903 Subpart A, of the Code of Federal                  available under the terms of the SPP
                                                  Secretary has issued this interim rate
                                                                                                           Regulations, ‘‘Procedures for Public                   OATT? Yes, for new transmission
                                                  order.
                                                                                                           Participation in Power and                             service. Additionally, as current
                                                  BACKGROUND                                               Transmission Rate Adjustments and                      Southwestern transmission service
                                                                                                           Extensions’’ (Part 903) in connection                  agreements expire (for grandfathered
                                                     In July 2013, Southwestern completed                  with the proposed Rate Schedule                        service or service under Southwestern’s
                                                  its review of the adequacy of the current                NFTS-13A. An opportunity for                           OATT), they will not be renewed; so if
                                                  rate schedules for the Integrated System                 customers and other interested members                 continued service is desired, it would be
                                                  and finalized its 2013 Power Repayment                   of the public to review and comment on                 under a new SPP OATT agreement.
                                                  Studies (2013 PRS). The studies                          the proposed rate schedule was                           If not, under what conditions may a
                                                  indicated that the proposed rates would                  announced by notice published in the                   customer elect to take Southwestern
                                                  meet cost recovery criteria for the                      Federal Register November 1, 2016, (81                 NITS? Per Southwestern’s agreement
                                                  Integrated System, including the                         FR 75814), with written comments due                   with SPP, which is filed as Attachment
                                                  identified Non-Federal Transmission                      by December 1, 2016. One customer                      AD of the SPP OATT, new Southwestern
                                                  Service (NFTS) Annual Revenue                            provided comments during the period of                 OATT NITS agreements will not be
                                                  Requirement (ARR). The Federal Energy                    public participation related to the                    entered into.
                                                  Regulatory Commission (FERC)                             proposed rate schedule change, which                     2. Approximately how many MWs of
                                                  confirmation and approval of the                         consisted of some clarifying questions                 Southwestern NITS Capacity are
                                                  following Integrated System rate                         that Southwestern answered and one                     currently reserved? 66 MW is currently
                                                  schedules was provided in a FERC order                                                                          reserved as NITS under both the
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                                                                                                           comment on phrasing that Southwestern
                                                  issued in Docket No. EF14–1–000 on                       acknowledged.                                          Southwestern and SPP OATTs.
                                                  January 9, 2014,1 for the period October                                                                          3. Will current Southwestern NITS
                                                  1, 2013, through September 30, 2017:                     DISCUSSION                                             customers be allowed to renew their
                                                  Rate Schedule P–13, Wholesale Rates                         The NFTS–13 Rate Schedule includes                  Southwestern NITS Agreement(s), or
                                                     for Hydro Peaking Power                               a stated rate for NITS that is calculated              will they transition to SPP NITS? As
                                                                                                           by dividing Southwestern’s monthly                     current Southwestern transmission
                                                    1 146   FERC ¶62,016                                   revenue requirement, derived from                      service agreements expire (for


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                                                                               Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices                                                       839

                                                  grandfathered service or service under                  ADMINISTRATOR’S CERTIFICATION                          revenues of the power system; or (2) is
                                                  Southwestern’s OATT), they will not be                     The revised rate schedule will repay                for a power system that has either
                                                  renewed; so if continued service is                     all costs of the Integrated System                     annual sales normally less than 100
                                                  desired, it would be under a new SPP                    including amortization of the power                    million kilowatt hours or an installed
                                                  OATT agreement, per SPP OATT                            investment consistent with the                         capacity of less than 20,000 kilowatts.
                                                  Attachment AD.                                          provisions of Department of Energy                     When consistent with the APA, DOE
                                                     4. Do you expect Section 2.3.5. to                   Order No. RA 6120.2. In accordance                     regulations also provide that the
                                                                                                          with Delegation Order Nos. 00–037.00A,                 effective date of rate schedules put into
                                                  apply to both SPP NITS and
                                                                                                          effective October 25, 2013, and 00–                    effect on an interim basis by the Deputy
                                                  Southwestern NITS? I believe the peak
                                                                                                          001.00F, effective November 17, 2014,                  Secretary may be sooner than 30 days
                                                  billing demand methodology is
                                                                                                          and Section 5 of the Flood Control Act                 after the Deputy Secretary’s decision
                                                  different. Section 2.3.5 applies to
                                                                                                          of 1944, the Administrator has                         when making a minor rate adjustment.
                                                  Southwestern NITS only. The new                                                                                   Additionally, DOE emphasizes that
                                                  Section 2.3.6 applies to SPP NITS only.                 determined that the proposed Integrated
                                                                                                                                                                 there were no substantive issues or
                                                     5. My understanding is that SPP bills                System rate schedule is consistent with
                                                                                                                                                                 concerns raised during the public
                                                  NITS load on a 12CP basis, whereas,                     applicable law and the lowest possible
                                                                                                                                                                 comment period for the NFTS–13A rate
                                                                                                          rates consistent with sound business
                                                  Southwestern bills NITS load on a 1CP                                                                          schedule action.
                                                                                                          principles.
                                                  basis (per 2.3.5). Is it correct that NITS
                                                  Transmission Customers on                                                                                      ORDER
                                                                                                          ENVIRONMENT
                                                  Southwestern’s system will pay less for                                                                          In view of the foregoing and pursuant
                                                                                                            The Southwestern NEPA Compliance
                                                  SPP NITS service than for equivalent                                                                           to the authority delegated to me by the
                                                                                                          Officer determined that the currently-
                                                  Southwestern NITS service?                                                                                     Secretary of Energy, I hereby confirm,
                                                                                                          approved Integrated System rates fall
                                                  Southwestern NITS customers are billed                                                                         approve and place in effect on an
                                                                                                          within the class of actions that are
                                                  on a 1 CP basis and SPP NITS                                                                                   interim basis, effective January 1, 2017,
                                                                                                          categorically excluded from the
                                                  customers are billed on 12 CP basis,                                                                           the Southwestern Integrated System
                                                                                                          requirements of preparing either an
                                                  both in accordance with their respective                                                                       Rate Schedule NFTS–13A which shall
                                                                                                          Environmental Impact Statement or an
                                                  OATT’s.                                                                                                        remain in effect on an interim basis
                                                                                                          Environmental Assessment. No
                                                                                                                                                                 through September 30, 2017, or until the
                                                     As to whether or not SPP NITS will                   additional evaluation of the
                                                                                                                                                                 FERC confirms and approves the rates
                                                  cost less than Southwestern NITS,                       environmental impact of the proposed
                                                                                                                                                                 on a final basis.
                                                  several factors will have to be assessed                rate schedule changes was conducted                      Dated: December 23, 2016.
                                                  to make that determination, including                   because no change in anticipated                       Elizabeth Sherwood-Randall,
                                                  the entities’ proportion of load at the                 revenues was contemplated.                             Deputy Secretary.
                                                  time of the monthly CP and the amount
                                                                                                          ADMINISTRATIVE PROCEDURES                              [FR Doc. 2016–31885 Filed 1–3–17; 8:45 am]
                                                  of transmission service reserved that
                                                                                                                                                                 BILLING CODE 6450–01–P
                                                  was transitioned to SPP NITS (per the                      The Administrative Procedure Act (5
                                                  proposed Section 2.3.6). Additionally,                  U.S.C. 553(d)) (APA) prescribes that the
                                                  entities choosing to utilize SPP NITS                   required publication or service of a
                                                                                                          substantive rule shall be made not less                FEDERAL RESERVE SYSTEM
                                                  will be subject to various SPP charges
                                                  (i.e. Schedule 11) that may add cost to                 than 30 days before its effective date,
                                                                                                                                                                 Formations of, Acquisitions by, and
                                                  the SPP NITS. The analysis of these                     except (1) a substantive rule that grants
                                                                                                                                                                 Mergers of Bank Holding Companies
                                                  costs can only be determined by the                     or recognizes an exemption or relieves
                                                  particular customer and their unique set                a restriction; (2) interpretative rules and              The companies listed in this notice
                                                  of circumstances. Therefore, a statement                statements of policy; or (3) as otherwise              have applied to the Board for approval,
                                                  that conveys certainty of a lower cost for              provided by the agency for good cause                  pursuant to the Bank Holding Company
                                                  SPP NITS cannot be made.                                found and published with the rule. For                 Act of 1956 (12 U.S.C. 1841 et seq.)
                                                                                                          the reasons stated in the paragraph that               (BHC Act), Regulation Y (12 CFR part
                                                  Comment:                                                follows, the Department of Energy                      225), and all other applicable statutes
                                                                                                          (DOE) finds good cause to waive the 30-                and regulations to become a bank
                                                     1. There are several general references
                                                                                                          day delay in effective date because a 30-              holding company and/or to acquire the
                                                  in the proposed NFTS–13A to Network                     day delay would be unnecessary.                        assets or the ownership of, control of, or
                                                  Integration Transmission Service. In a                     In this action, Southwestern updates                the power to vote shares of a bank or
                                                  few instances, the document refers to                   the method for charging non-Federal                    bank holding company and all of the
                                                  SPP NITS or Southwestern NITS. I think                  transmission customers who choose to                   banks and nonbanking companies
                                                  it would be good to clarify in each                     contract for SPP NITS on                               owned by the bank holding company,
                                                  instance if we are referring to SPP NITS,               Southwestern’s transmission system                     including the companies listed below.
                                                  Southwestern NITS, or both. Comment                     under the SPP OATT from a stated rate                    The applications listed below, as well
                                                  acknowledged. We will review the                        to a revenue-requirement based charge,                 as other related filings required by the
                                                  language and ensure the final rate                      to better align with standard practices                Board, are available for immediate
                                                  schedule has clarity between SPP NITS                   utilized by SPP. Because the NFTS–13A                  inspection at the Federal Reserve Bank
                                                  and Southwestern NITS.                                  rate schedule change will result in no                 indicated. The applications will also be
                                                                                                          change in anticipated revenues, it is                  available for inspection at the offices of
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                                                  AVAILABILITY OF INFORMATION
                                                                                                          considered a ‘‘minor rate adjustment’’                 the Board of Governors. Interested
                                                     Information regarding this rate                      pursuant to 10 CFR part 903, subpart A,                persons may express their views in
                                                  schedule change is available for public                 and Southwestern has treated it as such                writing on the standards enumerated in
                                                  review in the offices of Southwestern                   in the rate schedule actions to date. A                the BHC Act (12 U.S.C. 1842(c)). If the
                                                  Power Administration, Williams Tower                    ‘‘minor rate adjustment’’ is defined as a              proposal also involves the acquisition of
                                                  I, One West Third Street, Tulsa,                        rate adjustment that (1) will produce                  a nonbanking company, the review also
                                                  Oklahoma 74103.                                         less than 1 percent change in the annual               includes whether the acquisition of the


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Document Created: 2017-01-04 00:29:43
Document Modified: 2017-01-04 00:29:43
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 Rate Order.
ContactMr. Marshall Boyken, Senior Vice President, Chief Operating Officer, Office of Corporate Operations, Southwestern Power Administration, U.S. Department of Energy, One West Third Street, Tulsa, Oklahoma 74103, (918) 595-6646, [email protected], or facsimile transmission (918) 595-6646.
FR Citation82 FR 837 

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