83_FR_20153 83 FR 20065 - Olmsted Powerplant Replacement Project-Rate Order No. WAPA-177

83 FR 20065 - Olmsted Powerplant Replacement Project-Rate Order No. WAPA-177

DEPARTMENT OF ENERGY
Western Area Power Administration

Federal Register Volume 83, Issue 88 (May 7, 2018)

Page Range20065-20070
FR Document2018-09623

The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA-177 and Rate Schedule F-1, placing the formula rate for the Western Area Power Administration (WAPA) Olmsted Powerplant Replacement Project (Olmsted) into effect on an interim basis (Provisional Formula Rate).

Federal Register, Volume 83 Issue 88 (Monday, May 7, 2018)
[Federal Register Volume 83, Number 88 (Monday, May 7, 2018)]
[Notices]
[Pages 20065-20070]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09623]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Olmsted Powerplant Replacement Project-Rate Order No. WAPA-177

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of order concerning final rate for the Olmsted 
Powerplant Replacement Project.

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SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate 
Order No. WAPA-177 and Rate Schedule F-1, placing the formula rate for 
the Western Area Power Administration (WAPA) Olmsted Powerplant 
Replacement Project (Olmsted) into effect on an interim basis 
(Provisional Formula Rate).

DATES: The Provisional Formula Rate Schedule Olmsted F-1 is effective 
on the first day of the first, full billing period beginning on or 
after June 6, 2018, and will remain in effect through May 6, 2023, 
pending confirmation and

[[Page 20066]]

approval by the Federal Energy Regulatory Commission (FERC) on a final 
basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Brent Osiek, Power Marketing 
Manager, Colorado River Storage Project Management Center, Western Area 
Power Administration, 299 South Main Street, Suite 200, Salt Lake City, 
UT 84111, telephone (801) 524-5495, or Mr. Thomas Hackett, Rates 
Manager, Colorado River Storage Project Management Center, Western Area 
Power Administration, 299 South Main Street, Suite 200, Salt Lake City, 
UT 84111, telephone (801) 524-5503, email [email protected].

SUPPLEMENTARY INFORMATION: Olmsted is located at the mouth of Provo 
Canyon in northern Utah and is a part of the Central Utah Project, a 
participating project of the Colorado River Storage Project (CRSP). In 
order to secure water rights necessary for the Central Utah Project, 
the United States Department of the Interior initiated condemnation 
proceedings in 1987 to acquire the Olmsted facility from Utah Power and 
Light (now PacifiCorp). Under the terms of the condemnation settlement 
agreement, PacifiCorp was allowed to operate the Olmsted facility until 
September 2015. Upon expiration of the settlement agreement, 
replacement construction began due to the age and condition of the 
existing generating plant. The Project is scheduled to begin commercial 
service on August 1, 2018.
    Olmsted is a ``take all, pay all'' project; i.e., the annual 
revenue requirement is not dependent upon the amount of energy 
available each year. Customers with an allocation, as determined by the 
marketing plan process, will receive a proportional share of the energy 
and will annually pay a proportional share of the operation, 
maintenance, and replacement (OM&R) expenses in 12 monthly 
installments. This Notice establishes the initial formula rate for 
Olmsted under Rate Schedule F-1. The initial formula rate is as 
follows: Annual Revenue Requirement = Projected OM&R Costs + Projected 
Interest + Projected Principal Payments  True-Up 
Adjustment.

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-177, Olmsted Powerplant 
Replacement Project, into effect on an interim basis. The new Rate 
Schedule F-1 will be submitted to FERC for confirmation and approval on 
a final basis.

    Dated: April 30, 2018.
Dan Brouillette,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY DEPUTY SECRETARY

In the matter of: Western Area Power Administration, Rate Order for the 
Olmsted Powerplant Replacement Project.
Rate Order No. WAPA-177

ORDER CONFIRMING, APPROVING, AND PLACING THE OLMSTED POWERPLANT 
REPLACEMENT PROJECT FORMULA RATE INTO EFFECT ON AN INTERIM BASIS

    The formula rate for the Olmsted Powerplant Replacement Project 
(Olmsted) set forth in this order is 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 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:
    Allocation: A portion of Olmsted generation assigned a particular 
customer.
    CRSP Act Section 5(c): All revenues collected in connection with 
the operation of the Colorado River Storage Project and participating 
projects shall be credited to the Basin Fund, and shall be available, 
without further appropriation, for (1) defraying the costs of 
operation, maintenance, and replacements of, and emergency expenditures 
for, all facilities of the Colorado River Storage Project and 
participating projects, within such separate limitations as may be 
included in annual appropriation acts; lrovided, that with respect to 
each participating projects, such costs shall be paid from revenues 
received from each such project; (2) payment as required by subsection 
(d) of this section; and (3) payment as required by subsection (e) of 
this section. Revenues credited to the Basin Fund shall not be 
available for appropriation for construction of the units and 
participating projects authorized by or pursuant to this Act.
    Customer: An entity with a contract that is receiving an allocation 
of the Olmsted generation.
    DOE Order RA 6120.2: An order outlining power marketing 
administration financial reporting and ratemaking procedures.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time. Electric energy is expressed in kilowatt-hours.
    Environmental Documentation: Includes the Olmsted Hydroelectric 
Powerplant Replacement Project Final Environmental Assessment, Finding 
of No Significant Impact (FONSI) and the Memorandum of Agreement among 
the CUWCD, Interior, and the Utah State Historical Preservation Officer 
regarding the Olmsted Hydroelectric Powerplant Replacement Project.
    FY: Fiscal year; October 1 to September 30.
    Funding Agreement: Parties to the agreement are United States 
Department of the Interior--Bureau of Reclamation (Reclamation), United 
States Department of the Interior--Central Utah Project Completion Act 
Office, and Central Utah Water Conservancy District (District). The 
agreement describes the sources of funding for the project including 
non-Federal contributed

[[Page 20067]]

funds and provides for the transfer of funds from Reclamation to the 
District.
    Implementation Agreement: Memorandum of Understanding among the 
United States Department of the Interior--Bureau of Reclamation 
(Reclamation), United States Department of the Interior--Central Utah 
Project Completion Act Office, Central Utah Water Conservancy District, 
and Western Area Power Administration. It describes the proposed 
project and responsibilities of the parties.
    Installment: Annual Revenue Requirement billed to customers in 12 
equal monthly payments.
    M&I: Municipal and Industrial water supplies and uses.
    MW: Megawatt--the electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.
    O&M: Operation and Maintenance.
    OM&R: Operation, Maintenance, and Replacements.
    Power: Rate at which electric energy is transferred. Electric power 
is measured by capacity and is commonly expressed in megawatts.
    Provisional Formula Rate: A formula rate confirmed, approved, and 
placed into effect on an interim basis by the Deputy Secretary of 
Energy.
    PRS: Power Repayment Study.
    Revenue Requirement: The revenue required by the PRS to recover 
annual expenses (such as O&M, transmission service expenses, interest, 
and deferred expenses) and repay Federal investments and other assigned 
costs.

Effective Date

    The Provisional Olmsted Formula Rate Schedule F-1 will take effect 
on the first day of the first, full billing period beginning on or 
after June 6, 2018, and will remain in effect through May 6, 2023, 
pending approval by FERC on a final basis or until superseded.

Public Notice and Comment

    WAPA followed the Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing this rate and schedule. The steps WAPA took to involve 
interested parties in the rate process were:
    1. A Federal Register notice (FRN), published on October 12, 2017 
(82 FR 47506) (Proposal FRN), announced the proposed rate for Olmsted 
and began the 90-day public consultation and comment period.
    2. On October 17, 2017, WAPA's CRSP MC emailed an announcement of 
the November 17, 2017, public information and public comment forums to 
power customers of the CRSP MC, CRSP transmission customers, and 
interested parties, along with the Rate Brochure, which contained a 
copy of the published FRN proposal. This information was also posted to 
website: https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.
    3. On November 17, 2017, at 10 a.m. (MST), WAPA held a public 
information forum at the CRSP MC, 299 South Main Street, Suite 200, 
Salt Lake City, Utah. WAPA provided information about the proposed 
Olmsted formula rate. WAPA also answered questions and gave notice that 
more information was available in the customer rate brochure and on the 
website located at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx.
    4. On November 17, 2017, directly following the public information 
forum, WAPA held a public comment forum at the same location to provide 
an opportunity for customers and other interested parties to comment 
for the record. Three verbal comments were received at this forum.
    5. WAPA posted critical dates, customer letters, presentations, 
FRNs, customer brochure, and other information about this rate process 
at the website located at: https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx. Updates to the site were posted as follows:
    October 17, 2017: Olmsted Customer Brochure, Customer Letter for 
Proposed FRN, and the Published FRN--Olmsted Proposed Rates.
    November 15, 2017: Updated Customer Brochure with updated Table 1 
(pg. 7) and Schedule (pg. 16).
    November 17, 2017: Public Information Forum Presentation.
    December 4, 2017: Implementation Agreement, Memorandum of 
Concurrence, Funding Agreement, Table A & Olmsted Costs.
    December 6, 2017: Public Information Forum and Public Comment Forum 
transcripts.
    January 25, 2018: Letter Agreement No: 92-SLC-0208, Olmsted Final 
Environmental Assessment, comment letters received during the public 
comment period.
    6. During the 90-day consultation and comment period that ended on 
January 10, 2018, WAPA received three verbal comments and five comment 
letters. The comments and WAPA's responses are addressed below. All 
comments have been considered in the preparation of this Rate Order.
    Three representatives from the following organizations made verbal 
comments:

Central Utah Water Conservancy District, Utah
Colorado River Energy Distributors Association, Arizona
Utah Associated Municipal Power Systems, Utah

    Five representatives from the following organizations provided 
written comments:

Central Utah Project Completion Act Office, Utah
Central Utah Water Conservancy District, Utah
Colorado River Energy Distributors Association, Arizona
Utah Associated Municipal Power Systems, Utah
Utah Municipal Power Agency

Project Description

    Olmsted is located at the mouth of Provo Canyon in northern Utah 
and is a part of the Central Utah Project, a participating project of 
the Colorado River Storage Project (CRSP). In order to secure water 
rights necessary for the Central Utah Project, the United States 
Department of the Interior initiated condemnation proceedings in 1987 
to acquire the Olmsted facility from Utah Power and Light (now 
PacifiCorp). Under the terms of the condemnation settlement agreement, 
PacifiCorp was allowed to operate the Olmsted facility until September 
2015. Upon expiration of the settlement agreement, replacement 
construction began due to the age and condition of the existing 
generating plant. Olmsted is scheduled to begin commercial service on 
August 1, 2018.
    Olmsted is a ``take all, pay all'' project; i.e., the annual 
revenue requirement is not dependent on the amount of energy available 
each year. Customers with an allocation, as determined by the marketing 
plan process, will receive a proportional share of the energy and will 
annually pay a share of the operation, maintenance, and replacement 
(OM&R) expenses in 12 monthly installments.

Power Repayment Study--Formula Rate

    Repayment criteria are based on 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, WAPA will prepare a 
Power Repayment Study (PRS) each FY to determine if revenues will be 
sufficient to repay, within the required time, all costs assigned to 
Olmsted.
    Under the provisional rate methodology, the formula rate for 
Olmsted is designed to recover an annual revenue requirement that 
includes power investment repayment,

[[Page 20068]]

interest, O&M, and other expenses within the allowable period. The 
annual revenue requirement is proportionally distributed among all 
customers that have an allocated portion of Olmsted energy production. 
Annual OM&R obligations and related costs for Olmsted will be paid by 
designated revenues deposited in the Basin Fund, pursuant to the 
authority of Section 5(c) of the CRSP Act, attributable to the Central 
Utah Project including the OM&R costs of Olmsted Facilities; OM&R costs 
for the Olmsted Facilities located upstream of Olmsted Facilities; and 
costs associated with preservation of the historic power house that 
will be preserved and maintained as a museum as agreed with the Utah 
Division of State History (State Historic Preservation Office) as part 
of the National Environmental Policy Act (NEPA) process associated with 
Olmsted. The actual and projected investment and OM&R costs requiring 
repayment are shown in Table 1.

                                      Table 1--Projected Investment and OM&R Costs Reimbursable by Power Customers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   FY                          2018            2019            2020            2021            2022            2023            2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Capitalized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Generation/SCADA........................  ..............      $5,815,169  ..............  ..............  ..............  ..............  ..............
Historic Preservation...................  ..............  ..............        $500,000        $500,000        $500,000  ..............  ..............
                                         ---------------------------------------------------------------------------------------------------------------
    Total Capitalized...................  ..............       5,815,169         500,000         500,000         500,000  ..............  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Expensed
--------------------------------------------------------------------------------------------------------------------------------------------------------
Historic Preservation...................         $10,000          10,000          20,000          20,000          20,000         $50,000         $30,000
Powerplant..............................               0         100,000         175,000         180,250         185,658         191,227         196,964
Intake & Pipeline.......................               0          39,054         277,724         352,976         206,070         177,754         342,087
USBR O&M................................          10,000          27,500          10,000          10,000          27,500          10,000          10,000
WAPA O&M................................          10,000          10,000          10,000          10,000          10,000          10,000          10,000
Wheeling Charge.........................          50,000         200,000         200,000         200,000         200,000         200,000         200,000
                                         ---------------------------------------------------------------------------------------------------------------
    Total O&M...........................          80,000         386,554         692,724         773,226         649,227         638,981         789,051
--------------------------------------------------------------------------------------------------------------------------------------------------------

    WAPA will calculate the annual revenue requirement based on 2 years 
of data. The calculation includes the projected costs of the rate 
installment year (future FY) and an adjustment from the last historic 
FY. Annual revenues pay the annual amortized portion of the United 
States' investment in Olmsted with interest and the associated OM&R. 
The adjustment is the surplus or deficit that occurs in the last 
historic year when actual costs and repayment obligations are 
subtracted from actual revenues. This surplus or deficit is combined 
with the projected rate installment year costs to arrive at the revenue 
requirement. To date, all investments are accounted for as Construction 
in Progress (CIP) costs and have not been transferred to plant accounts 
for capitalization. Once transferred, a straight-line amortization 
schedule will be calculated for repayment. Historical financial data 
are only available through FY 2016, and projections are based on the FY 
2019 Reclamation and WAPA work plans received in April 2017, as 
indicated in Table 1.
    WAPA will provide Olmsted power customers with the initial 
installment information at least 30 days prior to initiation of 
service. The FY 2018 annual installment will include all projected FY 
2018 OM&R costs requiring repayment through FY 2018. The FY 2018 
installment amount will be divided by the number of months of service, 
which is anticipated to be 3 months. Thereafter, the annual installment 
amount, billed in 12 monthly payments, will be established in advance 
by WAPA and submitted to Olmsted power customers on or before August 31 
prior to the new FY. The FY 2019 annual installment will include the 
projected FY 2019 OM&R costs in addition to amortized payments on 
capital investments plus interest. The FY 2020 annual installment will 
be similar to FY 2019; however, it will include the FY 2018 final 
financial data and any True-Up between the FY 2018 projected costs and 
the actual FY 2018 costs.

Existing and Provisional Formula Rates

    There is no existing rate for the Project. This Notice establishes 
the initial formula rate for Olmsted under Rate Schedule F-1. The 
initial formula rate is as follows: Annual Revenue Requirement = 
Projected OM&R Costs + Projected Interest + Projected Principal 
Payments  True-Up Adjustment.

Certification of Rates

    WAPA's Administrator certified that the Provisional Formula Rate 
for the Olmsted Powerplant Replacement Project under Rate Schedule F-1 
results in the lowest possible rate consistent with sound business 
principles.

Basis for Rate Development

    The Provisional Formula Rate under Rate Schedule F-1 will provide 
sufficient revenue to pay all annual costs, including interest 
expenses, and repay investments within the allowable periods.

Comments

    WAPA received three verbal comments and five comment letters during 
the public consultation and comment period. The comments expressed have 
been paraphrased, where appropriate, without compromising the meaning 
of the comments. Direct quotes from comment letters are used for 
clarity where necessary.
    Comment: One commenter stated they are contributing up to 15 
million of local tax revenues to support this project and are counting 
on power revenues to reimburse O&M expenses.
    Response: WAPA's rate captures the yearly O&M expenses related to 
power, and those expenses will be included in the rate as will the 
repayment of funds from Section 5(c) of the CRSP Act contributed to the 
project. WAPA acknowledges that the cost of the Olmsted Project is 
being supported by local tax dollars as well from other funding 
sources.
    Comment: Commenter appreciated the information provided by WAPA 
during the public information and

[[Page 20069]]

comment forum as well as on the website.
    Response: WAPA will continue its efforts to provide transparency 
throughout the process.
    Comment: Commenter supports the proposed rate formula, which is 
consistent with the rate structure of the Provo River Project, 
including the true-up provisions to ensure only actual costs are 
attributed to the project and billed to customers.
    Response: WAPA acknowledges the comment.
    Comment: Commenter requested to be kept apprised of any revisions 
to Table A of the implementation agreement and to be notified and 
included in the annual customer/stakeholder meetings due to their 
relationship with Reclamation and WAPA. Commenter suggested that all 
attendees at the forum(s) be notified of the availability of updated 
and additional information.
    Response: A list of updates is posted in the ``Public Notice and 
Comment'' section of this document. WAPA sends out notifications when 
uploading data to the website so all participants have equitable access 
to the same information. Olmsted customers will be invited to annual 
rate meetings to discuss yearly repayment expenses as well as planned 
O&M costs.
    Comment: A commenter stated given the successful customer/agency 
partnership model of Agreement No. 92-SLC-0208, WAPA, Reclamation, and 
CUWCD should consider a similar process/agreement with the ultimate 
allottees of the Olmsted Project as a complement to Olmsted 
Implementation Agreement (Contract WS15-100).
    Response: While this comment is not within the scope of this rate 
process, WAPA has posted a copy of Agreement No. 92-SLC-0208 to the 
Olmsted Rate website located at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.aspx for informational purposes and for 
consideration in future discussions about whether a similar partnership 
agreement would be appropriate.
    Comment: Commenter asked whether the WAPA O&M rate component 
includes appropriate overhead/loading costs to ensure there is no 
subsidy between other WAPA projects and the Olmsted Project.
    Response: In addition to power marketing labor costs, the work plan 
includes depreciation expense (ADEPR), and applies both a headquarters' 
and regional Administrative & General Expense (AGE) overhead burden 
similar to all CRSP MC projects.
    Comment: Commenter questioned the difference between the cost table 
in the Proposal FRN and the one presented at the public information 
forum. Additionally, there was a request to provide additional 
delineation in the Olmsted O&M table including which costs associated 
with the historic preservation of the Olmsted Powerhouse would be 
capitalized versus expensed.
    Response: WAPA used the cost table from the Implementation 
Agreement in the Proposal FRN. WAPA subsequently received an update 
from CUWCD with additional construction costs that increased the total 
estimated project by 12 million and that cost table was introduced at 
the public information forum. However, of the differences noted between 
the tables, only the 300,000 increase in CRSP Act Section 5(c) funding 
is reimbursable by power customers. The capitalized and expensed costs 
for historic preservation are segregated in Table 1.
    Comment: A commenter stated, that: ``The annual revenues projected 
from the power revenue for each annual installment, adjusted as 
provided in the rate order, must be sufficient to reimburse the annual 
O&M expenses for operation of the Olmsted Project and must not be 
decreased on account of other revenue also deposited into the Basin 
Fund. The CUWCD anticipates participating in annual customer meetings 
and coordinating, more often outside those annual customer meetings, 
with the CUPCA office of the Department of Interior, Reclamation Power 
office and WAPA, to provide budget work plans and capital improvement 
and rehabilitation plans that can be used for calculating the most 
accurate annual installments by WAPA.''
    Response: Revenues received from the sale of Olmsted power will be 
deposited in the Basin Fund and identified as being associated with the 
Central Utah Project. Funds are available for the O&M and the annual 
rate update will provide sufficient funding for those activities 
associated with Olmsted operations without negatively affecting funding 
available for other CUP activities. WAPA welcomes continued 
coordination and participation of interested parties in the development 
and application of the Olmsted rate.
    Comment: Commenters questioned how much of the $837,670 is 
associated with historic preservation costs for converting the original 
power plant into a museum, as well as details of that work; the 
specific requirement(s) for preservation; the legal authority for 
including the costs as O&M; whether costs could be capitalized and 
repaid over forty years instead of expensed and repaid over 3 years; 
the intent regarding use of the facility as a museum and if it is 
intended to be accessible by the public.
    Response: Upon review of future cost estimates, it has been 
determined that historic preservation costs, estimated at $500,000 per 
year for FY 2020 thru FY 2022, should be capitalized rather than 
expensed as initially presented at the November 17, 2017, public 
information forum. This is reflected in Table 1 and was posted to the 
website on February 14, 2018. The original Olmsted Powerhouse is listed 
on the National Register of Historic Places and scheduled tours will be 
conducted in the renovated museum. The structural improvements to the 
existing Powerhouse are outlined in Section 5 of the Memorandum of 
Agreement among CUWCD, Interior, and the Utah State Historic 
Preservation Officer that was signed in October 2014 and was posted 
along with the Environmental Assessment (EA) and Finding of No 
Significant Impact (FONSI) to the website on January 25, 2018.
    Comment: Commenters questioned the funding source for the 
historical preservation work and whether non-reimbursable 
appropriations have been or could be requested/obtained in accordance 
with Section 8 of the CRSP Act.
    Response: CRSP Act Section 8 funding will not be available. The 
Bureau of Reclamation's authorized construction cost ceiling for the 
Bonneville Unit M&I System was fully utilized. As a result, Olmsted is 
not authorized for additional construction appropriations.
    Comment: Commenter expressed concern about a statement by WAPA 
during the public information forum that at the end of the contract 
period in 2024, the Olmsted Project may be included into CRSP. 
Customers asked for clarification and an explanation of what options 
WAPA is currently contemplating for Olmsted. Customers oppose any 
changes that would shift costs to CRSP.
    Response: The marketing plan is not within the scope of this 
process. WAPA will seek public comments when it conducts a public 
process for the Post-2024 Marketing Plan prior to the end of the 
current Marketing Plan.

Availability of Information

    Information about this rate schedule, including the customer rate 
brochure, PRSs, comments, letters, memorandums, and other supporting 
materials that were used to develop the Provisional Formula Rates, is 
available for inspection and copying at the Colorado River Storage 
Project

[[Page 20070]]

Management Center, 299 South Main Street, Suite 200, Salt Lake City, 
Utah. Many of these documents are also available on WAPA's website at 
https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-177.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 
adopted the EA and FONSI prepared by the Central Utah Water District 
for the Olmsted Powerplant Replacement Project. In addition, WAPA has 
determined that the marketing of Olmsted power and the establishment of 
power rates for the marketing of that power are Federal actions that 
are categorically excluded from the preparation of an EA or an 
environmental impact statement. A copy of the categorical exclusion 
determination is available on WAPA's website at https://www.wapa.gov/regions/RM/environment/Pages/CX2017.aspx.

Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no review 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 the first full 
billing period on or after June 6, 2018, Rate Schedule F-1 for the 
Olmsted Powerplant Replacement Project of the Western Area Power 
Administration. This rate schedule shall remain in effect on an interim 
basis, pending the Federal Energy Regulatory Commission's confirmation 
and approval of it, or substitute rate, on a final basis through May 6, 
2023, or until superseded.

    Dated: April 30, 2018.

Dan Brouillette,

Deputy Secretary of Energy.

United States Department of Energy Western Area Power Administration

Colorado River Storage Project Management Center Olmsted Powerplant 
Replacement Project

Electric Power Service, (Approved Under Rate Order No. WAPA-177)

Effective

    The first day of the first, full billing period beginning on or 
after June 6, 2018, and extending through May 6, 2023, or until 
superseded by another rate schedule, whichever occurs earlier.

Available

    Within the marketing area served by the Colorado River Storage 
Project; parts of Northern Utah.

Applicable

    To the sale of total plant generation to all customers with an 
Olmsted allocation.

Character

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

Formula Rate

    Annual Revenue Requirement = Projected OM&R Costs + Projected 
Interest + Projected Principal Payments  True-Up 
Adjustment.

Adjustments

    True-Up Adjustment: The surplus or deficit that occurred in the 
last historic year when actual costs and repayment obligations are 
subtracted from actual revenues.
    Adjustment for Power Factor: The customer will be required to 
maintain a power factor at all points of measurement between 95 
percent lagging and 95 percent leading.

[FR Doc. 2018-09623 Filed 5-4-18; 8:45 am]
 BILLING CODE 6450-01-P



                                                                               Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices                                                    20065

                                                  Docket Numbers: ER10–2390–003;                          Description: § 205(d) Rate Filing: May                Accession Number: 20180501–5288.
                                               ER10–2394–005; ER10–2395–005 ER10–                      2018 Membership Filing to be effective                   Comments Due: 5 p.m. ET 5/22/18.
                                               2422–005; ER11–3642–018; ER12–1562–                     4/1/2018.                                                Docket Numbers: ER18–1493–000.
                                               005 ER12–1563–005.                                         Filed Date: 5/1/18.                                   Applicants: Midcontinent
                                                  Applicants: Bicent (California)                         Accession Number: 20180501–5009.                   Independent System Operator, Inc.
                                               Malburg LLC, BIV Generation Company,                       Comments Due: 5 p.m. ET 5/22/18.                      Description: § 205(d) Rate Filing:
                                               L.L.C., Cayuga Operating Company,                          Docket Numbers: ER18–1486–000.                     2018–05–01_Order 825 Price Formation
                                               LLC, Colorado Power Partners, Rocky                        Applicants: AEP Ohio Transmission                  True-up Filing to be effective 7/1/2018.
                                               Mountain Power, LLC, Tanner Street                      Company, Inc.                                            Filed Date: 5/1/18.
                                               Generation, LLC, Somerset Operating                        Description: § 205(d) Rate Filing:                    Accession Number: 20180501–5293.
                                               Company, LLC.                                           OHTCo-Buckeye Cardinal SA to be                          Comments Due: 5 p.m. ET 5/22/18.
                                                  Description: Notice of Non-Material                  effective 6/30/2018.                                     The filings are accessible in the
                                               Change in Status of Bicent (California)                    Filed Date: 5/1/18.                                Commission’s eLibrary system by
                                               Malburg LLC, et. al.                                       Accession Number: 20180501–5010.                   clicking on the links or querying the
                                                  Filed Date: 4/30/18.                                    Comments Due: 5 p.m. ET 5/22/18.                   docket number.
                                                  Accession Number: 20180430–5461.                        Docket Numbers: ER18–1487–000.                        Any person desiring to intervene or
                                                  Comments Due: 5 p.m. ET 5/21/18.                        Applicants: Southwestern Electric                  protest in any of the above proceedings
                                                  Docket Numbers: ER18–1184–000;                       Power Company.                                        must file in accordance with Rules 211
                                               ER18–1183–000.                                             Description: § 205(d) Rate Filing:                 and 214 of the Commission’s
                                                  Applicants: Delta Solar Power II, LLC,               Rayburn Revised PSA to be effective                   Regulations (18 CFR 385.211 and
                                               Delta Solar Power I, LLC.                               5/31/2018.                                            385.214) on or before 5:00 p.m. Eastern
                                                  Description: Supplement to March 22,                    Filed Date: 5/1/18.                                time on the specified comment date.
                                               2018 Delta Solar Power I, LLC and Delta                    Accession Number: 20180501–5016.                   Protests may be considered, but
                                               Solar Power II, LLC tariff filings.                        Comments Due: 5 p.m. ET 5/22/18.                   intervention is necessary to become a
                                                  Filed Date: 4/27/18.                                                                                       party to the proceeding.
                                                                                                          Docket Numbers: ER18–1488–000.
                                                  Accession Number: 20180427–5308.                                                                              eFiling is encouraged. More detailed
                                                  Comments Due: 5 p.m. ET 5/18/18.                        Applicants: AEP Texas Inc.
                                                                                                          Description: § 205(d) Rate Filing: AEP             information relating to filing
                                                  Docket Numbers: ER18–1480–000.                       TX-Texas-New Mexico Power IA 3rd                      requirements, interventions, protests,
                                                  Applicants: PJM Interconnection,                     Amend & Restated to be effective 4/16/                service, and qualifying facilities filings
                                               L.L.C.                                                  2018.                                                 can be found at: http://www.ferc.gov/
                                                  Description: § 205(d) Rate Filing: First                Filed Date: 5/1/18.                                docs-filing/efiling/filing-req.pdf. For
                                               Revised ISA, SA No. 2133, Queue No.                        Accession Number: 20180501–5273.                   other information, call (866) 208–3676
                                               AC1–140 to be effective 3/29/2018.                         Comments Due: 5 p.m. ET 5/22/18.                   (toll free). For TTY, call (202) 502–8659.
                                                  Filed Date: 4/30/18.
                                                  Accession Number: 20180430–5301.                        Docket Numbers: ER18–1489–000.                       Dated: May 1, 2018.
                                                  Comments Due: 5 p.m. ET 5/21/18.                        Applicants: SP Cimarron I, LLC.                    Nathaniel J. Davis, Sr.,
                                                                                                          Description: § 205(d) Rate Filing:                 Deputy Secretary.
                                                  Docket Numbers: ER18–1481–000.
                                                  Applicants: Duke Energy Florida,                     Market-Based Rate Tariff Amendment to                 [FR Doc. 2018–09614 Filed 5–4–18; 8:45 am]
                                               LLC.                                                    Reflect Name Change to be effective                   BILLING CODE 6717–01–P
                                                  Description: § 205(d) Rate Filing: DEF               5/2/2018.
                                               IA Annual Cost Factor Update (2018) to                     Filed Date: 5/1/18.
                                               be effective 5/1/2018.                                     Accession Number: 20180501–5275.                   DEPARTMENT OF ENERGY
                                                  Filed Date: 4/30/18.                                    Comments Due: 5 p.m. ET 5/22/18.
                                                  Accession Number: 20180430–5328.                        Docket Numbers: ER18–1490–000.                     Western Area Power Administration
                                                  Comments Due: 5 p.m. ET 5/21/18.                        Applicants: AEP Texas Inc.
                                                                                                          Description: § 205(d) Rate Filing: AEP             Olmsted Powerplant Replacement
                                                  Docket Numbers: ER18–1482–000.                                                                             Project-Rate Order No. WAPA–177
                                                  Applicants: Pacific Gas and Electric                 TX-Patriot Wind Farm IA 4th Amend &
                                               Company.                                                Restated to be effective 4/13/2018.                   AGENCY:   Western Area Power
                                                  Description: § 205(d) Rate Filing: Q1                   Filed Date: 5/1/18.                                Administration, DOE.
                                               2018 Quarterly Filing of City and                          Accession Number: 20180501–5278.
                                                                                                                                                             ACTION: Notice of order concerning final
                                               County of San Francisco’s WDT SA (SA                       Comments Due: 5 p.m. ET 5/22/18.
                                                                                                                                                             rate for the Olmsted Powerplant
                                               275) to be effective 3/31/2018.                            Docket Numbers: ER18–1491–000.                     Replacement Project.
                                                  Filed Date: 4/30/18.                                    Applicants: AEP Texas Inc.
                                                  Accession Number: 20180430–5343.                        Description: § 205(d) Rate Filing:                 SUMMARY:    The Deputy Secretary of
                                                  Comments Due: 5 p.m. ET 5/21/18.                     AEPTX-Las Majadas Wind Farm                           Energy confirmed and approved Rate
                                                  Docket Numbers: ER18–1483–000.                       Interconnection Agreement to be                       Order No. WAPA–177 and Rate
                                                  Applicants: PJM Interconnection,                     effective 4/13/2018.                                  Schedule F–1, placing the formula rate
                                               L.L.C.                                                     Filed Date: 5/1/18.                                for the Western Area Power
                                                  Description: § 205(d) Rate Filing: 1st                  Accession Number: 20180501–5280.                   Administration (WAPA) Olmsted
                                               Quarter 2018 Revisions to OA, Sch. 12                      Comments Due: 5 p.m. ET 5/22/18.                   Powerplant Replacement Project
                                               and RAA, Sch. 17 Member Lists to be                        Docket Numbers: ER18–1492–000.                     (Olmsted) into effect on an interim basis
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                                               effective 3/31/2018.                                       Applicants: PJM Interconnection,                   (Provisional Formula Rate).
                                                  Filed Date: 4/30/18.                                 L.L.C.                                                DATES: The Provisional Formula Rate
                                                  Accession Number: 20180430–5351.                        Description: § 205(d) Rate Filing: First           Schedule Olmsted F–1 is effective on
                                                  Comments Due: 5 p.m. ET 5/21/18.                     Revised ISA, SA No. 4627; Queue No.                   the first day of the first, full billing
                                                  Docket Numbers: ER18–1485–000.                       AA1–076/AC1–108 to be effective 3/30/                 period beginning on or after June 6,
                                                  Applicants: New England Power Pool                   2018.                                                 2018, and will remain in effect through
                                               Participants Committee.                                    Filed Date: 5/1/18.                                May 6, 2023, pending confirmation and


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                                               20066                           Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices

                                               approval by the Federal Energy                          authority to confirm, approve, and place              govern DOE procedures for public
                                               Regulatory Commission (FERC) on a                       into effect on a final basis, to remand,              participation in power rate adjustments.
                                               final basis or until superseded.                        or to disapprove such rates to FERC.
                                                                                                                                                             Acronyms, Terms, and Definitions
                                               FOR FURTHER INFORMATION CONTACT: Mr.                    Federal rules (10 CFR part 903) govern
                                               Brent Osiek, Power Marketing Manager,                   DOE procedures for public participation                 As used in this Rate Order, the
                                               Colorado River Storage Project                          in power rate adjustments.                            following acronyms, terms, and
                                               Management Center, Western Area                           Under Delegation Order Nos. 00–                     definitions apply:
                                               Power Administration, 299 South Main                    037.00B and 00–001.00F and in                           Allocation: A portion of Olmsted
                                               Street, Suite 200, Salt Lake City, UT                   compliance with 10 CFR part 903 and                   generation assigned a particular
                                               84111, telephone (801) 524–5495, or Mr.                 18 CFR part 300, I hereby confirm,                    customer.
                                               Thomas Hackett, Rates Manager,                          approve, and place Rate Order No.                       CRSP Act Section 5(c): All revenues
                                               Colorado River Storage Project                          WAPA–177, Olmsted Powerplant                          collected in connection with the
                                               Management Center, Western Area                         Replacement Project, into effect on an                operation of the Colorado River Storage
                                               Power Administration, 299 South Main                    interim basis. The new Rate Schedule                  Project and participating projects shall
                                               Street, Suite 200, Salt Lake City, UT                   F–1 will be submitted to FERC for                     be credited to the Basin Fund, and shall
                                               84111, telephone (801) 524–5503, email                  confirmation and approval on a final                  be available, without further
                                               hackett@wapa.gov.                                       basis.                                                appropriation, for (1) defraying the costs
                                               SUPPLEMENTARY INFORMATION: Olmsted is                                                                         of operation, maintenance, and
                                                                                                         Dated: April 30, 2018.
                                               located at the mouth of Provo Canyon in                                                                       replacements of, and emergency
                                                                                                       Dan Brouillette,
                                               northern Utah and is a part of the                                                                            expenditures for, all facilities of the
                                                                                                       Deputy Secretary of Energy.                           Colorado River Storage Project and
                                               Central Utah Project, a participating
                                               project of the Colorado River Storage                   DEPARTMENT OF ENERGY DEPUTY                           participating projects, within such
                                               Project (CRSP). In order to secure water                SECRETARY                                             separate limitations as may be included
                                               rights necessary for the Central Utah                                                                         in annual appropriation acts; lrovided,
                                                                                                       In the matter of: Western Area Power                  that with respect to each participating
                                               Project, the United States Department of                  Administration, Rate Order for the
                                               the Interior initiated condemnation                                                                           projects, such costs shall be paid from
                                                                                                         Olmsted Powerplant Replacement                      revenues received from each such
                                               proceedings in 1987 to acquire the                        Project.
                                               Olmsted facility from Utah Power and                                                                          project; (2) payment as required by
                                               Light (now PacifiCorp). Under the terms                 Rate Order No. WAPA–177                               subsection (d) of this section; and (3)
                                               of the condemnation settlement                          ORDER CONFIRMING, APPROVING,                          payment as required by subsection (e) of
                                               agreement, PacifiCorp was allowed to                    AND PLACING THE OLMSTED                               this section. Revenues credited to the
                                               operate the Olmsted facility until                      POWERPLANT REPLACEMENT                                Basin Fund shall not be available for
                                               September 2015. Upon expiration of the                  PROJECT FORMULA RATE INTO                             appropriation for construction of the
                                               settlement agreement, replacement                       EFFECT ON AN INTERIM BASIS                            units and participating projects
                                               construction began due to the age and                                                                         authorized by or pursuant to this Act.
                                               condition of the existing generating                       The formula rate for the Olmsted                     Customer: An entity with a contract
                                               plant. The Project is scheduled to begin                Powerplant Replacement Project                        that is receiving an allocation of the
                                               commercial service on August 1, 2018.                   (Olmsted) set forth in this order is                  Olmsted generation.
                                                  Olmsted is a ‘‘take all, pay all’’                   established in accordance with section                  DOE Order RA 6120.2: An order
                                               project; i.e., the annual revenue                       302 of the Department of Energy (DOE)                 outlining power marketing
                                               requirement is not dependent upon the                   Organization Act (42 U.S.C. 7152). This               administration financial reporting and
                                               amount of energy available each year.                   Act transferred to, and vested in, the                ratemaking procedures.
                                               Customers with an allocation, as                        Secretary of Energy the power marketing                 Energy: Measured in terms of the
                                               determined by the marketing plan                        functions of the Secretary of the                     work it is capable of doing over a period
                                               process, will receive a proportional                    Department of the Interior and the                    of time. Electric energy is expressed in
                                               share of the energy and will annually                   Bureau of Reclamation (Reclamation)                   kilowatt-hours.
                                               pay a proportional share of the                         under the Reclamation Act of 1902 (ch.                  Environmental Documentation:
                                               operation, maintenance, and                             1093, 32 Stat. 388), as amended and                   Includes the Olmsted Hydroelectric
                                               replacement (OM&R) expenses in 12                       supplemented by subsequent laws,                      Powerplant Replacement Project Final
                                               monthly installments. This Notice                       particularly section 9(c) of the                      Environmental Assessment, Finding of
                                               establishes the initial formula rate for                Reclamation Act of 1939 (43 U.S.C.                    No Significant Impact (FONSI) and the
                                               Olmsted under Rate Schedule F–1. The                    485h(c)); and other acts that specifically            Memorandum of Agreement among the
                                               initial formula rate is as follows: Annual              apply to the projects involved.                       CUWCD, Interior, and the Utah State
                                               Revenue Requirement = Projected                            By Delegation Order No. 00–037.00B,                Historical Preservation Officer regarding
                                               OM&R Costs + Projected Interest +                       effective November 19, 2016, the                      the Olmsted Hydroelectric Powerplant
                                               Projected Principal Payments ± True-Up                  Secretary of Energy delegated: (1) The                Replacement Project.
                                               Adjustment.                                             authority to develop power and                          FY: Fiscal year; October 1 to
                                                                                                       transmission rates to the Administrator               September 30.
                                               Legal Authority                                         of Western Area Power Administration                    Funding Agreement: Parties to the
                                                  By Delegation Order No. 00–037.00B,                  (WAPA); (2) the authority to confirm,                 agreement are United States Department
                                               effective November 19, 2016, the                        approve, and place such rates into effect             of the Interior—Bureau of Reclamation
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                                               Secretary of Energy delegated: (1) The                  on an interim basis to the Deputy                     (Reclamation), United States
                                               authority to develop power and                          Secretary of Energy; and (3) the                      Department of the Interior—Central
                                               transmission rates to the Administrator                 authority to confirm, approve, and place              Utah Project Completion Act Office, and
                                               of WAPA; (2) the authority to confirm,                  into effect on a final basis, to remand,              Central Utah Water Conservancy District
                                               approve, and place such rates into effect               or to disapprove such rates to the                    (District). The agreement describes the
                                               on an interim basis to the Deputy                       Federal Energy Regulatory Commission                  sources of funding for the project
                                               Secretary of Energy; and (3) the                        (FERC). Federal rules (10 CFR part 903)               including non-Federal contributed


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                                                                               Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices                                             20067

                                               funds and provides for the transfer of                  MC, CRSP transmission customers, and                  Colorado River Energy Distributors
                                               funds from Reclamation to the District.                 interested parties, along with the Rate                 Association, Arizona
                                                  Implementation Agreement:                            Brochure, which contained a copy of the               Utah Associated Municipal Power
                                               Memorandum of Understanding among                       published FRN proposal. This                            Systems, Utah
                                               the United States Department of the                     information was also posted to website:                 Five representatives from the
                                               Interior—Bureau of Reclamation                          https://www.wapa.gov/regions/CRSP/                    following organizations provided
                                               (Reclamation), United States                            rates/Pages/rates.aspx.                               written comments:
                                               Department of the Interior—Central                         3. On November 17, 2017, at 10 a.m.
                                                                                                                                                             Central Utah Project Completion Act
                                               Utah Project Completion Act Office,                     (MST), WAPA held a public information
                                                                                                                                                               Office, Utah
                                               Central Utah Water Conservancy                          forum at the CRSP MC, 299 South Main
                                                                                                                                                             Central Utah Water Conservancy
                                               District, and Western Area Power                        Street, Suite 200, Salt Lake City, Utah.
                                                                                                                                                               District, Utah
                                               Administration. It describes the                        WAPA provided information about the
                                                                                                                                                             Colorado River Energy Distributors
                                               proposed project and responsibilities of                proposed Olmsted formula rate. WAPA
                                                                                                                                                               Association, Arizona
                                               the parties.                                            also answered questions and gave notice
                                                                                                                                                             Utah Associated Municipal Power
                                                  Installment: Annual Revenue                          that more information was available in
                                                                                                                                                               Systems, Utah
                                               Requirement billed to customers in 12                   the customer rate brochure and on the
                                                                                                                                                             Utah Municipal Power Agency
                                               equal monthly payments.                                 website located at https://
                                                  M&I: Municipal and Industrial water                  www.wapa.gov/regions/CRSP/rates/                      Project Description
                                               supplies and uses.                                      Pages/rate-order-177.aspx.                               Olmsted is located at the mouth of
                                                  MW: Megawatt—the electrical unit of                     4. On November 17, 2017, directly
                                                                                                                                                             Provo Canyon in northern Utah and is
                                               capacity that equals 1 million watts or                 following the public information forum,
                                                                                                                                                             a part of the Central Utah Project, a
                                               1,000 kilowatts.                                        WAPA held a public comment forum at
                                                                                                                                                             participating project of the Colorado
                                                  O&M: Operation and Maintenance.                      the same location to provide an
                                                  OM&R: Operation, Maintenance, and                                                                          River Storage Project (CRSP). In order to
                                                                                                       opportunity for customers and other
                                               Replacements.                                                                                                 secure water rights necessary for the
                                                                                                       interested parties to comment for the
                                                  Power: Rate at which electric energy                                                                       Central Utah Project, the United States
                                                                                                       record. Three verbal comments were
                                               is transferred. Electric power is                                                                             Department of the Interior initiated
                                                                                                       received at this forum.
                                               measured by capacity and is commonly                       5. WAPA posted critical dates,                     condemnation proceedings in 1987 to
                                               expressed in megawatts.                                 customer letters, presentations, FRNs,                acquire the Olmsted facility from Utah
                                                  Provisional Formula Rate: A formula                  customer brochure, and other                          Power and Light (now PacifiCorp).
                                               rate confirmed, approved, and placed                    information about this rate process at                Under the terms of the condemnation
                                               into effect on an interim basis by the                  the website located at: https://                      settlement agreement, PacifiCorp was
                                               Deputy Secretary of Energy.                             www.wapa.gov/regions/CRSP/rates/                      allowed to operate the Olmsted facility
                                                  PRS: Power Repayment Study.                          Pages/rate-order-177.aspx. Updates to                 until September 2015. Upon expiration
                                                  Revenue Requirement: The revenue                     the site were posted as follows:                      of the settlement agreement,
                                               required by the PRS to recover annual                      October 17, 2017: Olmsted Customer                 replacement construction began due to
                                               expenses (such as O&M, transmission                     Brochure, Customer Letter for Proposed                the age and condition of the existing
                                               service expenses, interest, and deferred                FRN, and the Published FRN—Olmsted                    generating plant. Olmsted is scheduled
                                               expenses) and repay Federal                             Proposed Rates.                                       to begin commercial service on August
                                               investments and other assigned costs.                      November 15, 2017: Updated                         1, 2018.
                                                                                                       Customer Brochure with updated Table                     Olmsted is a ‘‘take all, pay all’’
                                               Effective Date                                                                                                project; i.e., the annual revenue
                                                                                                       1 (pg. 7) and Schedule (pg. 16).
                                                 The Provisional Olmsted Formula                          November 17, 2017: Public                          requirement is not dependent on the
                                               Rate Schedule F–1 will take effect on                   Information Forum Presentation.                       amount of energy available each year.
                                               the first day of the first, full billing                   December 4, 2017: Implementation                   Customers with an allocation, as
                                               period beginning on or after June 6,                    Agreement, Memorandum of                              determined by the marketing plan
                                               2018, and will remain in effect through                 Concurrence, Funding Agreement, Table                 process, will receive a proportional
                                               May 6, 2023, pending approval by FERC                   A & Olmsted Costs.                                    share of the energy and will annually
                                               on a final basis or until superseded.                      December 6, 2017: Public Information               pay a share of the operation,
                                                                                                       Forum and Public Comment Forum                        maintenance, and replacement (OM&R)
                                               Public Notice and Comment                               transcripts.                                          expenses in 12 monthly installments.
                                                 WAPA followed the Procedures for                         January 25, 2018: Letter Agreement
                                                                                                       No: 92–SLC–0208, Olmsted Final                        Power Repayment Study—Formula
                                               Public Participation in Power and
                                                                                                       Environmental Assessment, comment                     Rate
                                               Transmission Rate Adjustments and
                                               Extensions, 10 CFR part 903, in                         letters received during the public                      Repayment criteria are based on
                                               developing this rate and schedule. The                  comment period.                                       applicable laws and legislation as well
                                               steps WAPA took to involve interested                      6. During the 90-day consultation and              as policies including DOE Order RA
                                               parties in the rate process were:                       comment period that ended on January                  6120.2. To meet the Cost Recovery
                                                 1. A Federal Register notice (FRN),                   10, 2018, WAPA received three verbal                  Criteria outlined in DOE Order RA
                                               published on October 12, 2017 (82 FR                    comments and five comment letters.                    6120.2, WAPA will prepare a Power
                                               47506) (Proposal FRN), announced the                    The comments and WAPA’s responses                     Repayment Study (PRS) each FY to
                                               proposed rate for Olmsted and began the                 are addressed below. All comments                     determine if revenues will be sufficient
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                                               90-day public consultation and                          have been considered in the preparation               to repay, within the required time, all
                                               comment period.                                         of this Rate Order.                                   costs assigned to Olmsted.
                                                 2. On October 17, 2017, WAPA’s                           Three representatives from the                       Under the provisional rate
                                               CRSP MC emailed an announcement of                      following organizations made verbal                   methodology, the formula rate for
                                               the November 17, 2017, public                           comments:                                             Olmsted is designed to recover an
                                               information and public comment                          Central Utah Water Conservancy                        annual revenue requirement that
                                               forums to power customers of the CRSP                      District, Utah                                     includes power investment repayment,


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                                               20068                                Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices

                                               interest, O&M, and other expenses                                   pursuant to the authority of Section 5(c)                                    as agreed with the Utah Division of
                                               within the allowable period. The annual                             of the CRSP Act, attributable to the                                         State History (State Historic
                                               revenue requirement is proportionally                               Central Utah Project including the                                           Preservation Office) as part of the
                                               distributed among all customers that                                OM&R costs of Olmsted Facilities;                                            National Environmental Policy Act
                                               have an allocated portion of Olmsted                                OM&R costs for the Olmsted Facilities                                        (NEPA) process associated with
                                               energy production. Annual OM&R                                      located upstream of Olmsted Facilities;                                      Olmsted. The actual and projected
                                               obligations and related costs for                                   and costs associated with preservation                                       investment and OM&R costs requiring
                                               Olmsted will be paid by designated                                  of the historic power house that will be                                     repayment are shown in Table 1.
                                               revenues deposited in the Basin Fund,                               preserved and maintained as a museum

                                                                  TABLE 1—PROJECTED INVESTMENT AND OM&R COSTS REIMBURSABLE BY POWER CUSTOMERS
                                                            FY                         2018                       2019                       2020                       2021                       2022                       2023                       2024

                                                                                                                                               Capitalized

                                               Generation/SCADA ......          ........................         $5,815,169           ........................   ........................   ........................   ........................   ........................
                                               Historic Preservation ....       ........................   ........................            $500,000                   $500,000                   $500,000          ........................   ........................

                                                    Total Capitalized ...       ........................          5,815,169                      500,000                    500,000                    500,000         ........................   ........................

                                                                                                                                                Expensed

                                               Historic Preservation ....                 $10,000                      10,000                     20,000                    20,000                     20,000                     $50,000                   $30,000
                                               Powerplant ...................                   0                     100,000                    175,000                   180,250                    185,658                     191,227                   196,964
                                               Intake & Pipeline ..........                     0                      39,054                    277,724                   352,976                    206,070                     177,754                   342,087
                                               USBR O&M ..................                 10,000                      27,500                     10,000                    10,000                     27,500                      10,000                    10,000
                                               WAPA O&M .................                  10,000                      10,000                     10,000                    10,000                     10,000                      10,000                    10,000
                                               Wheeling Charge .........                   50,000                     200,000                    200,000                   200,000                    200,000                     200,000                   200,000

                                                    Total O&M .............                  80,000                   386,554                    692,724                    773,226                    649,227                    638,981                   789,051



                                                  WAPA will calculate the annual                                   divided by the number of months of                                           Basis for Rate Development
                                               revenue requirement based on 2 years of                             service, which is anticipated to be 3                                          The Provisional Formula Rate under
                                               data. The calculation includes the                                  months. Thereafter, the annual                                               Rate Schedule F–1 will provide
                                               projected costs of the rate installment                             installment amount, billed in 12                                             sufficient revenue to pay all annual
                                               year (future FY) and an adjustment from                             monthly payments, will be established                                        costs, including interest expenses, and
                                               the last historic FY. Annual revenues                               in advance by WAPA and submitted to                                          repay investments within the allowable
                                               pay the annual amortized portion of the                             Olmsted power customers on or before                                         periods.
                                               United States’ investment in Olmsted                                August 31 prior to the new FY. The FY
                                               with interest and the associated OM&R.                              2019 annual installment will include                                         Comments
                                               The adjustment is the surplus or deficit                            the projected FY 2019 OM&R costs in                                             WAPA received three verbal
                                               that occurs in the last historic year                               addition to amortized payments on                                            comments and five comment letters
                                               when actual costs and repayment                                     capital investments plus interest. The                                       during the public consultation and
                                               obligations are subtracted from actual                              FY 2020 annual installment will be                                           comment period. The comments
                                               revenues. This surplus or deficit is                                similar to FY 2019; however, it will                                         expressed have been paraphrased,
                                               combined with the projected rate                                    include the FY 2018 final financial data                                     where appropriate, without
                                               installment year costs to arrive at the                             and any True-Up between the FY 2018                                          compromising the meaning of the
                                               revenue requirement. To date, all                                   projected costs and the actual FY 2018                                       comments. Direct quotes from comment
                                               investments are accounted for as                                    costs.                                                                       letters are used for clarity where
                                               Construction in Progress (CIP) costs and                                                                                                         necessary.
                                               have not been transferred to plant                                  Existing and Provisional Formula Rates                                          Comment: One commenter stated they
                                               accounts for capitalization. Once                                                                                                                are contributing up to 15 million of
                                               transferred, a straight-line amortization                             There is no existing rate for the
                                                                                                                                                                                                local tax revenues to support this
                                               schedule will be calculated for                                     Project. This Notice establishes the
                                                                                                                                                                                                project and are counting on power
                                               repayment. Historical financial data are                            initial formula rate for Olmsted under
                                                                                                                                                                                                revenues to reimburse O&M expenses.
                                               only available through FY 2016, and                                 Rate Schedule F–1. The initial formula
                                                                                                                                                                                                   Response: WAPA’s rate captures the
                                               projections are based on the FY 2019                                rate is as follows: Annual Revenue
                                                                                                                                                                                                yearly O&M expenses related to power,
                                               Reclamation and WAPA work plans                                     Requirement = Projected OM&R Costs +                                         and those expenses will be included in
                                               received in April 2017, as indicated in                             Projected Interest + Projected Principal                                     the rate as will the repayment of funds
                                               Table 1.                                                            Payments ± True-Up Adjustment.                                               from Section 5(c) of the CRSP Act
                                                  WAPA will provide Olmsted power                                  Certification of Rates                                                       contributed to the project. WAPA
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                                               customers with the initial installment                                                                                                           acknowledges that the cost of the
                                               information at least 30 days prior to                                 WAPA’s Administrator certified that                                        Olmsted Project is being supported by
                                               initiation of service. The FY 2018                                  the Provisional Formula Rate for the                                         local tax dollars as well from other
                                               annual installment will include all                                 Olmsted Powerplant Replacement                                               funding sources.
                                               projected FY 2018 OM&R costs                                        Project under Rate Schedule F–1 results                                         Comment: Commenter appreciated
                                               requiring repayment through FY 2018.                                in the lowest possible rate consistent                                       the information provided by WAPA
                                               The FY 2018 installment amount will be                              with sound business principles.                                              during the public information and


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                                                                               Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices                                              20069

                                               comment forum as well as on the                         Proposal FRN and the one presented at                 use of the facility as a museum and if
                                               website.                                                the public information forum.                         it is intended to be accessible by the
                                                  Response: WAPA will continue its                     Additionally, there was a request to                  public.
                                               efforts to provide transparency                         provide additional delineation in the                    Response: Upon review of future cost
                                               throughout the process.                                 Olmsted O&M table including which                     estimates, it has been determined that
                                                  Comment: Commenter supports the                      costs associated with the historic                    historic preservation costs, estimated at
                                               proposed rate formula, which is                         preservation of the Olmsted Powerhouse                $500,000 per year for FY 2020 thru FY
                                               consistent with the rate structure of the               would be capitalized versus expensed.                 2022, should be capitalized rather than
                                               Provo River Project, including the true-                   Response: WAPA used the cost table                 expensed as initially presented at the
                                               up provisions to ensure only actual                     from the Implementation Agreement in                  November 17, 2017, public information
                                               costs are attributed to the project and                 the Proposal FRN. WAPA subsequently                   forum. This is reflected in Table 1 and
                                               billed to customers.                                    received an update from CUWCD with                    was posted to the website on February
                                                  Response: WAPA acknowledges the                      additional construction costs that                    14, 2018. The original Olmsted
                                               comment.                                                increased the total estimated project by              Powerhouse is listed on the National
                                                  Comment: Commenter requested to be                   12 million and that cost table was                    Register of Historic Places and
                                               kept apprised of any revisions to Table                 introduced at the public information                  scheduled tours will be conducted in
                                               A of the implementation agreement and                   forum. However, of the differences                    the renovated museum. The structural
                                               to be notified and included in the                      noted between the tables, only the                    improvements to the existing
                                               annual customer/stakeholder meetings                    300,000 increase in CRSP Act Section                  Powerhouse are outlined in Section 5 of
                                               due to their relationship with                          5(c) funding is reimbursable by power                 the Memorandum of Agreement among
                                               Reclamation and WAPA. Commenter                         customers. The capitalized and                        CUWCD, Interior, and the Utah State
                                               suggested that all attendees at the                     expensed costs for historic preservation              Historic Preservation Officer that was
                                               forum(s) be notified of the availability of             are segregated in Table 1.                            signed in October 2014 and was posted
                                               updated and additional information.                        Comment: A commenter stated, that:                 along with the Environmental
                                                  Response: A list of updates is posted                ‘‘The annual revenues projected from                  Assessment (EA) and Finding of No
                                               in the ‘‘Public Notice and Comment’’                    the power revenue for each annual                     Significant Impact (FONSI) to the
                                               section of this document. WAPA sends                    installment, adjusted as provided in the              website on January 25, 2018.
                                               out notifications when uploading data                   rate order, must be sufficient to                        Comment: Commenters questioned
                                               to the website so all participants have                 reimburse the annual O&M expenses for                 the funding source for the historical
                                               equitable access to the same                            operation of the Olmsted Project and                  preservation work and whether non-
                                               information. Olmsted customers will be                  must not be decreased on account of                   reimbursable appropriations have been
                                               invited to annual rate meetings to                      other revenue also deposited into the                 or could be requested/obtained in
                                               discuss yearly repayment expenses as                    Basin Fund. The CUWCD anticipates                     accordance with Section 8 of the CRSP
                                               well as planned O&M costs.                              participating in annual customer                      Act.
                                                  Comment: A commenter stated given                    meetings and coordinating, more often                    Response: CRSP Act Section 8
                                               the successful customer/agency                          outside those annual customer                         funding will not be available. The
                                               partnership model of Agreement No.                      meetings, with the CUPCA office of the                Bureau of Reclamation’s authorized
                                               92–SLC–0208, WAPA, Reclamation, and                     Department of Interior, Reclamation                   construction cost ceiling for the
                                               CUWCD should consider a similar                         Power office and WAPA, to provide                     Bonneville Unit M&I System was fully
                                               process/agreement with the ultimate                     budget work plans and capital                         utilized. As a result, Olmsted is not
                                               allottees of the Olmsted Project as a                   improvement and rehabilitation plans                  authorized for additional construction
                                               complement to Olmsted Implementation                    that can be used for calculating the most             appropriations.
                                               Agreement (Contract WS15–100).                          accurate annual installments by                          Comment: Commenter expressed
                                                  Response: While this comment is not                  WAPA.’’                                               concern about a statement by WAPA
                                               within the scope of this rate process,                     Response: Revenues received from the               during the public information forum
                                               WAPA has posted a copy of Agreement                     sale of Olmsted power will be deposited               that at the end of the contract period in
                                               No. 92–SLC–0208 to the Olmsted Rate                     in the Basin Fund and identified as                   2024, the Olmsted Project may be
                                               website located at https://                             being associated with the Central Utah                included into CRSP. Customers asked
                                               www.wapa.gov/regions/CRSP/rates/                        Project. Funds are available for the O&M              for clarification and an explanation of
                                               Pages/rate-order-177.aspx for                           and the annual rate update will provide               what options WAPA is currently
                                               informational purposes and for                          sufficient funding for those activities               contemplating for Olmsted. Customers
                                               consideration in future discussions                     associated with Olmsted operations                    oppose any changes that would shift
                                               about whether a similar partnership                     without negatively affecting funding                  costs to CRSP.
                                               agreement would be appropriate.                         available for other CUP activities.                      Response: The marketing plan is not
                                                  Comment: Commenter asked whether                     WAPA welcomes continued                               within the scope of this process. WAPA
                                               the WAPA O&M rate component                             coordination and participation of                     will seek public comments when it
                                               includes appropriate overhead/loading                   interested parties in the development                 conducts a public process for the Post-
                                               costs to ensure there is no subsidy                     and application of the Olmsted rate.                  2024 Marketing Plan prior to the end of
                                               between other WAPA projects and the                        Comment: Commenters questioned                     the current Marketing Plan.
                                               Olmsted Project.                                        how much of the $837,670 is associated
                                                  Response: In addition to power                       with historic preservation costs for                  Availability of Information
                                               marketing labor costs, the work plan                    converting the original power plant into                Information about this rate schedule,
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                                               includes depreciation expense (ADEPR),                  a museum, as well as details of that                  including the customer rate brochure,
                                               and applies both a headquarters’ and                    work; the specific requirement(s) for                 PRSs, comments, letters,
                                               regional Administrative & General                       preservation; the legal authority for                 memorandums, and other supporting
                                               Expense (AGE) overhead burden similar                   including the costs as O&M; whether                   materials that were used to develop the
                                               to all CRSP MC projects.                                costs could be capitalized and repaid                 Provisional Formula Rates, is available
                                                  Comment: Commenter questioned the                    over forty years instead of expensed and              for inspection and copying at the
                                               difference between the cost table in the                repaid over 3 years; the intent regarding             Colorado River Storage Project


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                                               20070                           Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Notices

                                               Management Center, 299 South Main                       Deputy Secretary of Energy.                           brown marmorated stinkbug. The
                                               Street, Suite 200, Salt Lake City, Utah.                United States Department of Energy Western            applicants propose uses which are
                                               Many of these documents are also                        Area Power Administration                             supported by the Interregional Research
                                               available on WAPA’s website at https://                                                                       Project Number 4 (IR–4) and have been
                                                                                                       Colorado River Storage Project Management
                                               www.wapa.gov/regions/CRSP/rates/                                                                              requested in 5 or more previous years,
                                                                                                       Center Olmsted Powerplant Replacement
                                               Pages/rate-order-177.aspx.                              Project                                               and petitions for tolerances have not yet
                                                                                                                                                             been submitted to the Agency.
                                               Ratemaking Procedure Requirements                       Electric Power Service, (Approved Under               Therefore, EPA is soliciting public
                                               Environmental Compliance                                Rate Order No. WAPA–177)                              comment before making the decision
                                                 In compliance with the National                       Effective                                             whether to grant the exemptions.
                                               Environmental Policy Act (NEPA) of                        The first day of the first, full billing period     DATES: Comments must be received on
                                               1969, 42 U.S.C. 4321–4347; the Council                  beginning on or after June 6, 2018, and               or before May 22, 2018.
                                               on Environmental Quality Regulations                    extending through May 6, 2023, or until               ADDRESSES: Submit your comments,
                                                                                                       superseded by another rate schedule,
                                               for implementing NEPA (40 CFR parts                                                                           identified by docket identification (ID)
                                                                                                       whichever occurs earlier.
                                               1500–1508); and DOE NEPA                                                                                      number EPA–HQ–OPP–2018–0192, by
                                               Implementing Procedures and                             Available                                             one of the following methods:
                                               Guidelines (10 CFR part 1021), WAPA                       Within the marketing area served by the               • Federal eRulemaking Portal:
                                               adopted the EA and FONSI prepared by                    Colorado River Storage Project; parts of              https://www.regulations.gov. Follow the
                                               the Central Utah Water District for the                 Northern Utah.                                        online instructions for submitting
                                               Olmsted Powerplant Replacement                          Applicable                                            comments. Do not submit electronically
                                               Project. In addition, WAPA has                                                                                any information you consider to be
                                                                                                         To the sale of total plant generation to all
                                               determined that the marketing of                        customers with an Olmsted allocation.                 Confidential Business Information (CBI)
                                               Olmsted power and the establishment of                                                                        or other information whose disclosure is
                                               power rates for the marketing of that                   Character                                             restricted by statute.
                                               power are Federal actions that are                        Alternating current, 60 hertz, three-phase,           • Mail: OPP Docket, Environmental
                                               categorically excluded from the                         delivered and metered at the voltages and             Protection Agency Docket Center (EPA/
                                               preparation of an EA or an                              points established by contract.                       DC), (28221T), 1200 Pennsylvania Ave.
                                               environmental impact statement. A                       Formula Rate                                          NW, Washington, DC 20460–0001.
                                               copy of the categorical exclusion                         Annual Revenue Requirement = Projected                • Hand Delivery: To make special
                                               determination is available on WAPA’s                    OM&R Costs + Projected Interest + Projected           arrangements for hand delivery or
                                               website at https://www.wapa.gov/                        Principal Payments ± True-Up Adjustment.              delivery of boxed information, please
                                               regions/RM/environment/Pages/                                                                                 follow the instructions at https://
                                                                                                       Adjustments
                                               CX2017.aspx.                                                                                                  www.epa.gov/dockets/where-send-
                                                                                                         True-Up Adjustment: The surplus or                  comments-epa-dockets.
                                               Determination Under Executive Order                     deficit that occurred in the last historic year
                                               12866                                                                                                           Additional instructions on
                                                                                                       when actual costs and repayment obligations
                                                                                                       are subtracted from actual revenues.                  commenting or visiting the docket,
                                                 WAPA has an exemption from                                                                                  along with more information about
                                                                                                         Adjustment for Power Factor: The
                                               centralized regulatory review under                     customer will be required to maintain a               dockets generally, is available at https://
                                               Executive Order 12866; accordingly, no                  power factor at all points of measurement             www.epa.gov/dockets.
                                               review of this Notice by the Office of                  between 95 percent lagging and 95 percent             FOR FURTHER INFORMATION CONTACT:
                                               Management and Budget is required.                      leading.                                              Michael L. Goodis, Registration Division
                                               Submission to the Federal Energy                        [FR Doc. 2018–09623 Filed 5–4–18; 8:45 am]            (7505P), Office of Pesticide Programs,
                                               Regulatory Commission                                   BILLING CODE 6450–01–P                                Environmental Protection Agency, 1200
                                                  The Provisional Formula Rates herein                                                                       Pennsylvania Ave. NW, Washington, DC
                                               confirmed, approved, and placed into                                                                          20460–0001; main telephone number:
                                               effect on an interim basis, together with               ENVIRONMENTAL PROTECTION                              (703) 305–7090; email address:
                                               supporting documents, will be                           AGENCY                                                RDFRNotices@epa.gov.
                                               submitted to FERC for confirmation and                  [EPA–HQ–OPP–2018–0192; FRL–9976–55]                   SUPPLEMENTARY INFORMATION:
                                               final approval.                                                                                               I. General Information
                                                                                                       Dinotefuran; Receipt of Applications
                                               Order                                                   for Emergency Exemptions,                             A. Does this action apply to me?
                                                  In view of the foregoing and under the               Solicitation of Public Comment                           You may be potentially affected by
                                               authority delegated to me, I confirm and                                                                      this action if you are an agricultural
                                               approve on an interim basis, effective                  AGENCY: Environmental Protection
                                                                                                       Agency (EPA).                                         producer, food manufacturer, or
                                               the first full billing period on or after                                                                     pesticide manufacturer. The following
                                               June 6, 2018, Rate Schedule F–1 for the                 ACTION: Notice.
                                                                                                                                                             list of North American Industrial
                                               Olmsted Powerplant Replacement                          SUMMARY:  EPA has received specific                   Classification System (NAICS) codes is
                                               Project of the Western Area Power                       exemption requests from the Delaware                  not intended to be exhaustive, but rather
                                               Administration. This rate schedule shall                Department of Agriculture (DDA), the                  provides a guide to help readers
                                               remain in effect on an interim basis,                   Maryland Department of Agriculture                    determine whether this document
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                                               pending the Federal Energy Regulatory                   (MDA), the Pennsylvania Department of                 applies to them. Potentially affected
                                               Commission’s confirmation and                           Agriculture (PDA) and the Virginia                    entities may include:
                                               approval of it, or substitute rate, on a                Department of Agriculture and                            • Crop production (NAICS code 111).
                                               final basis through May 6, 2023, or until               Consumer Services (VDACS) to use the                     • Animal production (NAICS code
                                               superseded.                                             insecticide dinotefuran (CAS No.                      112).
                                                 Dated: April 30, 2018.                                165252–70–0) to treat up to 58,118 acres                 • Food manufacturing (NAICS code
                                               Dan Brouillette,                                        of pome and stone fruits to control the               311).


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Document Created: 2018-05-05 02:48:53
Document Modified: 2018-05-05 02:48:53
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 final rate for the Olmsted Powerplant Replacement Project.
DatesThe Provisional Formula Rate Schedule Olmsted F-1 is effective on the first day of the first, full billing period beginning on or after June 6, 2018, and will remain in effect through May 6, 2023, pending confirmation and approval by the Federal Energy Regulatory Commission (FERC) on a final basis or until superseded.
ContactMr. Brent Osiek, Power Marketing Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 299 South Main Street, Suite 200, Salt Lake City, UT 84111, telephone (801) 524-5495, or Mr. Thomas Hackett, Rates Manager, Colorado River Storage Project Management Center, Western Area Power Administration, 299 South Main Street, Suite 200, Salt Lake City, UT 84111, telephone (801) 524-5503, email [email protected]
FR Citation83 FR 20065 

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