SUPPLEMENTARY INFORMATION:

FERC, by Order issued February 10, 2022, in Docket No. EF21-4-000, confirmed and approved on a final basis Wholesale Power Rate Schedules JW-1-L and JW-2-F applicable to the Jim Woodruff Project for a period ending September 30, 2026. On August 6, 2024, Southeastern submitted a notice of cancellation of the JW-2-F Rate Schedule for the sale of power from ( printed page 60120) Southeastern's Jim Woodruff Project to Duke Energy Florida effective October 6, 2024. There are no remaining obligations under the JW-2-F Rate Schedule. (FERC Docket No. EF24-8-000 (Sep. 13, 2024)). This order replaces the JW-1-L Rate Schedule with the JW-1-M Rate Schedule on an interim basis, subject to confirmation and final approval by FERC.

Department of Energy

Administrator, Southeastern Power Administration

In the Matter of: Southeastern Power Administration, Jim Woodruff Project Power Rates, Rate Order No. SEPA-69

Order Confirming and Approving Power Rates on an Interim Basis

Rate Order No. SEPA-69 and associated rate schedule are applicable to Southeastern Power Administration (Southeastern) power sold to existing customers in Florida. The rate schedule approved on an interim basis, effective October 1, 2026, through September 30, 2031, and is subject to confirmation and approval by the Federal Energy Regulatory Commission (FERC) on a final basis.

Background

Power from the Jim Woodruff Project is currently sold under Wholesale Power Rate Schedule JW-1-L. Rate Schedules JW-1-L and JW-2-F were approved by the Federal Energy Regulatory Commission in Docket No. EF21-4-000 on February 10, 2022. The JW-2-F Rate Schedule was cancelled effective October 6, 2024. (FERC Docket No. EF24-8-000, (Sept. 13, 2024)). The cancellation followed updates to marketing arrangements associated with the establishment of a new Power Marketing Policy for the Jim Woodruff Project, as well as a mutual agreement between Southeastern and Duke Energy Florida to terminate the Duke Energy Florida contract effective April 20, 2024. The JW-1-L Rate Schedule remains in effect and is scheduled to expire on September 30, 2026.

Public Notice and Comment

Notice of a proposed rate adjustment and opportunities for public review and comment for the Jim Woodruff Project was published in the Federal Register (91 FR 27938) on May 15, 2026. Southeastern proposed an increase to the existing rate schedule and charges applicable to the sale of power from the Jim Woodruff Project to become effective October 1, 2026, through September 30, 2031. The notice advised interested parties of a public information forum to be held in-person at Florida Electric Cooperatives Association in Tallahassee, FL with an option to attend virtually via Microsoft Teams on June 4, 2026. The notice further advised of a comment forum being held in-person at Southeastern Power Administration with an option to attend virtually via Microsoft Teams on July 7, 2026.

The annual generation revenue requirement proposed at the public information forum was $8,662,652, an increase of about 6.7 percent. The proposed rates reflected a 6.6 percent increase in the capacity charge and 10.8 percent in energy charge. The rates proposed were $9.02 per kilowatt per month for capacity and 24.72 mills per kilowatt-hour for energy.

Following the presentation of the proposed Rate Schedule JW-1-M, Southeastern completed an administrative review and determined administrative revisions were necessary to conform with the Jim Woodruff Power Marketing Policy finalized in 2023, purchase power contracts executed in April 2024, and current operational billing practices. Southeastern provided interested parties with a fair opportunity to review the updated materials and submit written comments by extending the comment period by 15 calendar days. The comment period was scheduled to close on August 13, 2026; however, with the extension, written comments were accepted through August 27, 2026.

Public Comments

Southeastern received oral comments from a participant as part of the public information forum on June 4, 2026. The comments are summarized below. Southeastern's responses are provided.

Oral Comment 1: In reviewing the materials, we note there is a decrease in Corps revenues projected over the study period. Is there an understanding as to why those revenues are decreasing in future years?

Response 1: The projected Corps Revenue amount of $32,348 represents the average revenue from the previous five fiscal years (2021-2025). Revenues included in the total Corps Revenue consist of revenue from timber sales, recreation leases at the project, soda machines, maps, ice, payphones, and other miscellaneous items. A review of past financial statements indicates the decline in revenue from timber sales has been the primary factor contributing to the overall decrease in actual and projected Corps Revenue.

Oral Comment 2: It appears from our review that there is an accumulated deficit that occurred in 2024. Is there a reason for that accumulated deficit?

Response 2: The deficit amount of $341,676 shown in FY 2024 resulted from insufficient revenue to cover annual expenses and interest. Total Operating Revenue for FY 2024 was $8,028,116, while Total Annual Expenses (including interest) totaled $8,369,793. No investments were due in FY 2024; therefore, the deficit was not related to an inability to meet the repayment schedule. In FY 2025, the study reflected Net Revenue of $2,484,316. This amount was sufficient to recover the FY 2024 deficit and contribute toward repayment obligations.

Written Comment 3: After reviewing the proposed rate increase for the Jim Woodruff Project, customers believe the range of the increase is considered a reasonable reflection of rising costs since the last rate modification, particularly the higher Operation and Maintenance expenses attributed to the Corps and a modest increase in SEPA's marketing costs. Deficits accumulated between 2021 and 2025 have been repaid without being carried forward, which is an important feature of the rate design, helping keep rates as low as possible.

Concerns remain regarding the Corps' classification of certain environmental stewardship expenses as hydropower-related costs, underscoring the need for careful evaluation of proper cost assignment and categorization. SEPA's Administrator maintains independent authority to determine which costs are included in hydropower rates, consistent with congressional reaffirmation in WRDA 2024, and is encouraged to exercise this discretion to ensure rates for 2026-2031 remain as low as possible while upholding sound business principles.

Response 3: Southeastern values the collaborative relationship shared with the customers, and appreciates the thorough review of the rate design, repayment structures, and cost recovery mechanisms. We welcome our customers' acknowledgement of the proposed rate range aligning with rising operational demands since the last rate adjustment and their support for addressing historical deficits. Ensuring repayment of deficits accumulated between FY 2021 and FY 2025 is successfully repaid without being carried forward into the upcoming rate cycle is a critical component of our financial obligation. This proactive amortization directly aligns with Southeastern's commitment to rate stability, preventing long-term interest burdens and helping to keep future rates as low as possible. ( printed page 60121)

Southeastern shares customers' concerns regarding the classification of certain environmental stewardship expenses as hydropower-related costs by the Corps. The Administrator of SEPA has used his discretion as to setting rates for the sale of electric power and energy pursuant to Section 5 of the Flood Control Act of 1944, whether monies appropriated to the Corps are those monies Congress deems to be repaid by hydropower customers within a prescribed time period, to exclude certain Environmental Stewardship joint-to-power projected expenses from the Jim Woodruff revenue requirement.

A total of $2,390,183.40 in projected environmental stewardship costs have been determined to be non-reimbursable from the sale of power for FY 2026-2030, and $429,904.20 annually for FY 2031-2076. These exclusions are reflected in the Jim Woodruff Power Rate Study and supporting documents. Certain environmental stewardship joint costs relating to the curation of archeological and natural resources, remain appropriately included in the projected joint expenses.

This action ensures Southeastern's rate-setting practices remain fully aligned with federal statutes, project authorizations, and official joint-use cost allocation reports. We believe this resolution addresses the customers' primary concerns, safeguards power customers from bearing unequitable costs, and upholds sound financial and business principles.

Discussion

System Repayment

An examination of Southeastern's revised system power repayment study, prepared in March 2026 for the Jim Woodruff Project, shows with the proposed rates, all system power costs are paid within the appropriate repayment period and meet the cost-recovery criteria set forth by existing law and in DOE Order RA 6120.2. The Administrator of Southeastern Power Administration has certified the rates are consistent with applicable law and they are the lowest possible rates to customers consistent with sound business principles.

Legal Authority

By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 2016, the Secretary of Energy delegated: (1) the authority to develop power and transmission rates to Southeastern's Administrator; (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy; and (3) the authority to confirm, approve, and place into effect on a final basis, or to remand or disapprove such rates, to FERC. By Delegation Order No. S1-DEL-S3-2024, effective August 30, 2024, the Secretary of Energy also delegated the authority to confirm, approve, and place such rates into effect on an interim basis to the Under Secretary for Infrastructure. By Redelegation Order No. S3-DEL-SEPA-2023, effective April 10, 2023, the Under Secretary for Infrastructure redelegated the authority to confirm, approve, and place such rates into effect on an interim basis to the Southeastern Administrator.

Environmental Compliance

Southeastern has determined this action fits within the following categorical exclusion listed in appendix B of 10 CFR part 1021 and appendix B of DOE's National Environmental Policy Act (NEPA)implementing procedures published on June 30, 2025: B4.3, Electric power marketing rate changes. Categorically excluded projects and activities do not require preparation of either an environmental impact statement or an environmental assessment.¹

Determination Under Executive Order 12866

Southeastern has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no clearance of this notice by the Office of Management and Budget is required.

Availability of Information

Information regarding these rates, including studies, and other supporting materials, is available for public review in the offices of Southeastern Power Administration, 1166 Athens Tech Road, Elberton, Georgia 30635-6711.

Order

In view of the foregoing and pursuant to the authority redelegated to me by the Under Secretary for Infrastructure, I hereby confirm and approve on an interim basis, effective October 1, 2026, attached Wholesale Power Rate Schedule JW-1-M. The rate schedule shall remain in effect on an interim basis through September 30, 2031, unless such period is extended or until FERC confirms and approves it or a substitute rate schedule on a final basis.

Signing Authority

This document of the Department of Energy was signed on September 17, 2026, by Virgil G. Hobbs III, Administrator for Southeastern Power Administration, pursuant to delegated authority from the Secretary of Energy. That document, with the original signature and date, is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative process in no way alters the legal effect of this document upon publication in the Federal Register .

Wholesale Power Rate Schedule JW-1-M

Availability: This rate schedule shall be available to public bodies and cooperatives receiving delivery within the state of Florida from the Jim Woodruff Project (hereinafter called the Project).

Applicability: This rate schedule shall be applicable to capacity and accompanying energy made available by the Government from the Project and sold in wholesale quantities.

Character of Service: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 cycles per second delivered at the Project point of interconnection.

Monthly Rate: The monthly rate for capacity and energy made available or delivered under this rate schedule shall be:

Demand Charge: $9.02 per kilowatt of monthly contract demand.

Energy Charge: 24.72 mills per kilowatt-hour.

Contract Demand: The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive.

Energy Made Available: The energy made available is the customer's ratable percent of the energy made available from the Project based on the purchaser's allocation of power to the sum of all the allocations of Government power from the Project in each billing month, less losses.

Billing Month: The billing month for power sold under this schedule shall end at 12:00 midnight Central Prevailing Time on the last day of each calendar month.

Conditions of Service: The customer shall, at its own expense, provide, ( printed page 60122) arrange for and maintain transmission service necessary to receive allocation of Government power from the Project.

October 1, 2026.

91 FR 60119