[Federal Register Volume 59, Number 133 (Wednesday, July 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16991]


[[Page Unknown]]

[Federal Register: July 13, 1994]


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DEPARTMENT OF ENERGY
Southeastern Power Administration

 

Cumberland Basin System of Projects

AGENCY: Southeastern Power Administration (Southeastern), DOE.

ACTION: Notice.

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SUMMARY: On June 29, 1994, the Deputy Secretary, Department of Energy, 
confirmed and approved, on an interim basis, Rate Schedules CBR-1-C, 
CSI-1-C, CEK-1-C, CM-1-C, CC-1-D, CK-1-C, AND CTV-1-C for the 
Cumberland Basin System of Project's power. The rates were approved on 
an interim basis through June 30, 1999, and are subject to confirmation 
and approval by the Federal Regulatory Commission on a final basis.

DATES: Approval of rates on an interim basis is effective July 1, 1994.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Director, Power 
Marketing, Southeastern Power Administration, Department of Energy, 
Samuel Elbert Building, Elberton, Georgia 30635.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission by 
Order issued September 26, 1989, in Docket No. EF89-3031-000, confirmed 
and approved Wholesale Power Rate Schedules CBR-1-B, CSI-1-B, CEK-1-B, 
CC-1-C, CM-1-B, CK-1-B, and CTV-1-B through June 30, 1994. Rate 
Schedules CBR-1-C, CSI-1-C, CEK-1-C, CM-1-C, CC-1-D, CK-1-C, AND CTV-1-
C replace these rate schedules.
    System Development: Nine projects make up the Cumberland system. 
The Cumberland projects are: Dale Hollow, Center Hill, Wolf Creek, Old 
Hickory, Cheatham, Barkley, J. Percy Priest, Cordell Hull and Laurel.
    The projects were developed by the U.S. Army Corps of Engineers for 
the comprehensive development of the Cumberland River Basin. Project 
purposes include hydroelectric power, navigation, flood control, 
recreation, pollution abatement, and economic development. Collectively 
the projects provide 5.1 million acre feet of flood control storage and 
380 miles of navigation channel. Each of the nine reservoirs have 
specific recreational facilities which attract millions of visitors 
annually. The total installed capacity of the projects is 914 MW which 
generate an average of 3,271,000 MWH annually.

    Issued in Washington, DC, June 29, 1994.
William H. White,
Deputy Secretary.

Order Confirming and Approving Power Rates on an Interim Basis

    In the Matter of: Southeastern Power Administration--Cumberland 
Basin Projects' Power Rates. Rate Order No. SEPA-33.

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern 
Power Administration (Southeastern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 0204-108, effective 
May 30, 1986, 51 F.R. 19744 (May 30, 1986), the Secretary of Energy 
delegated to the Administrator the authority to develop power and 
transmission rates, and delegated to the Under Secretary the authority 
to confirm, approve, and place in effect such rates on an interim basis 
and delegated to the Federal Energy Regulatory Commission (FERC) the 
authority to confirm, approve, and place in effect on a final basis or 
to disapprove rates developed by the Administrator under the 
delegation. On November 4, 1993, the Secretary of Energy issued 
Amendment No. 3 to Delegation Order No. 0204-108, [58 F.R. 59716; 
November 10, 1993] granting the Deputy Secretary authority to confirm, 
approve, and place into effect Southeastern's rates on an interim 
basis. This rate order is issued pursuant to the delegation to the 
Deputy Secretary.

Background

Projects

    Power from 8 of the 9 projects in the Cumberland Basin Projects 
(Wolf Creek, Center Hill, Dale Hollow, Old Hickory, Cheatham, Barkley, 
J. Percy Priest, Cordell Hull and Laurel) is sold through the 
transmission system of the Tennessee Valley Authority (TVA). TVA has 
contracted to purchase 405,000 KW to preference customers outside the 
service area and to firm up the 70,000 KW from the Laurel Project. The 
Laurel Project is located in the service area of and delivered to East 
Kentucky Power Cooperative. Cumberland Basin power not sold to East 
Kentucky Power for the use of its preference customers is sold to eight 
municipalities in the Mississippi Power and Light area via a contract 
with the Municipal Energy Agency of Mississippi; seven cooperatives in 
the Mississippi Power and Light area via a contract with South 
Mississippi Electric Power Association; Big Rivers Electric 
Corporation; the City of Henderson Kentucky; East Kentucky power 
Cooperative; Southern Illinois Power Cooperative; and one municipality 
and two cooperatives in the western portion of the Carolina Power and 
Light Company (CP&L) service area via transmission over TVA's and 
CP&L's transmission system. Currently 62 MW of the power to be marketed 
outside the TVA area is temporarily being marketed to TVA for the use 
of its preference customers pending completion of arrangements to 
market the power to preference customers in the Kentucky Utilities 
Company area. The projects were developed by the U. S. Army Corps of 
Engineers for the comprehensive development of the Cumberland River 
Basin. Project purposes include hydroelectric power, navigation, flood 
control, recreation, pollution abatement, and economic development. 
Collectively the projects provide 5.1 million acre feet of flood 
control storage and 380 miles of navigation channel. Each of the 9 
projects have specific recreation facilities which attract millions of 
visitors annually. Total installed capacity of the projects is 914 MW 
which generate an average of 3,271,000 MWH annually. The power 
generated at the projects in operation during fiscal year 1993 was sold 
to 293 customers. Southeastern cannot furnish the entire capacity and 
energy needs of any of its customers. Capacity and energy requirements 
in excess of that available from Southeastern's resources must be 
acquired from other sources.

Transmission

    Under the Notice of Issuance Final Power Marketing Policy, 
Cumberland System of Projects 58 FR 41762; August 5, 1993, 475 MW of 
capacity is made available to SEPA's customers outside the TVA region 
from the Cumberland Projects. Under TVA's firm commitment of 
transmission service provided for in the marketing agreement, TVA makes 
the amounts SEPA schedules (as much of the 475 MW as Southeastern 
indicates) available across the TVA system to the points selected by 
Southeastern on the periphery of the system. Under the Power Marketing 
policy, 405 MW is allocated to TVA for the benefit of 160 preference 
customers located on the TVA system. According to the marketing policy, 
TVA is to receive a monthly credit for delivering Cumberland system 
capacity and energy to SEPA's preference customers outside the TVA 
region. The credit is applied each month against charges to TVA for 
Cumberland River system capacity and energy provided TVA under the 
marketing agreement. Since 1984 this monthly credit has been $500,000 
for 475 MW to be delivered to the periphery of the TVA system. This 
monthly credit is reduced for each MW of capacity that Southeastern is 
unable to sell to its customers outside the TVA area. Therefore, TVA's 
monthly credit has been reduced in the past by $80,600 for the 62 MW of 
capacity that SEPA has been unable to sell due to Kentucky Utilities 
Company's refusal to wheel such power to preference customers located 
in its area. TVA has received an annual credit of approximately 
$5,032,800 which will increase to $6,032,800 under the negotiated 
settlement which is described in this document.

Current Rates

    Power from the Cumberland Basin Projects is presently sold under 
Wholesale Power Rate Schedules CBR-1-B, CSI-1-B, CEK-1-B, CC-1-C, CM-1-
B, CK-1-B and CTV-1-B. Wholesale Power Rate Schedules CBR-1-B, CSI-1-B, 
CEK-1-B, CC-1-C, CM-1-B, CK-1-B and CTV-1-B were confirmed and approved 
by the Federal Energy Regulatory Commission by order issued September 
16, 1989, for a period beginning July 1, 1989, and ending June 30, 
1994.

Discussion

System Repayment

    An examination of Southeastern's system power repayment study 
prepared in May 1994 for the Cumberland Basin Projects reveals that 
with an annual revenue increase of $2,211,000, over the current 
revenues shown in the previous February 1994 repayment study, all 
system power costs are paid within their repayment life. Wholesale 
Power Rate Schedules CBR-1-C, CSI-1-C, CEK-1-C, CC-1-D, CM-1-C, CK-1-C 
and CTV-1-C are designed to produce adequate revenue to recover all 
system power costs on a timely basis. The Administrator of Southeastern 
has certified that the rates are consistent with the applicable law and 
that they are the lowest possible rates to customers consistent with 
sound business principles.

Rate Design

    A repayment study was prepared using present contract rates. The 
repayment study demonstrated that rates were not high enough to repay 
all investments within their repayment life. Southeastern proposed a 6 
percent rate increase that would meet repayment criteria. The Tennessee 
Valley Authority (TVA) responded by increasing their transmission 
charge from $6 to $12.1 million. Southeastern held a Public Comment 
forum on March 10, 1994 to give opportunity for review and comment of 
proposed rates. Southeastern announced a revised rate increase of 24 
percent for all customers. At the Public Comment Forum TVA asserted 
that the rate design used to calculate the 24 percent rate increase 
failed to compensate TVA for the use of its transmission facilities and 
that TVA customers were paying for transmission service twice.
    The 160 preference customers inside TVA are represented by the 
Tennessee Valley Public Power Association (TVPPA). The TVPPA is a 
service organization that, among other duties, negotiates rates with 
TVA. Power requirements of TVPPA members are provided exclusively by 
TVA.
    The TVPPA rates committee questioned the allocation of costs 
between capacity and energy. Previous rate filings allocated 40 percent 
of the generation costs to capacity and 60 percent to energy. The 40/60 
allocation was criticized by TVA for allocating too much of the 
generation cost to energy. TVPPA felt that more of the cost should be 
placed on the capacity component of the rate and that the energy 
component should cover O&M. Customers outside the TVA system criticized 
Southeastern's Cumberland marketing plan for giving too much energy to 
TVA.
    After the public comment forum Southeastern met with TVA and the 
outside customers in an attempt to negotiate a settlement. Southeastern 
agreed to change the rate design. The new rate design eliminates the 
capacity/energy split and allocates the TVA transmission charge to the 
outside customers. All customers pay a capacity charge that includes 
1500 hours energy with each kilowatt of capacity. Residual energy is 
sold to TVA with an additional energy charge. This eliminated the 
disagreement regarding the 40/60 split.
    Initially TVA proposed a $12.1 million transmission charge. 
Southeastern and TVA agreed to a negotiated settlement of $7 million 
per year for transmission. The settlement results in a 5.1% rate 
increase to TVA and a 9.5% increase to outside customers. This amount 
is reduced further by a $967,200 credit for power that is allocated, 
but not delivered to customers in the Kentucky Utilities service area. 
While neither TVA nor outside customers are completely satisfied with 
this settlement, Southeastern does not believe either will intervene 
against this rate.
    A copy of the Public Comments and Responses (Exhibit A-5 of the 
Rate Filing) is attached to clarify any issues that may not be fully 
addressed in the main body of this document.

Public Notice and Comment

    Opportunities for public review and comment on Wholesale Power Rate 
Schedules CBR-1-C, CSI-1-C, CEK-1-C, CC-1-D, CM-1-C, CK-1-C and CTV-1-
C, proposed for use during the period July 1, 1994, through June 30, 
1999, were announced by Notice published in the Federal Register on 
February 7, 1994. All customers were notified by mail. A Public 
Information and Comment Forum was held in Nashville, Tennessee, on 
March 10, 1994, and written comments were invited by the Notice through 
May 3, 1989. Oral comments were presented at the forum and written 
comments were received prior to May 10, 1994. There were twelve (12) 
substantive comments received and all comments were evaluated. Comments 
and questions from four sources were received at the Public Comment 
Forum held in Nashville on March 10, 1994. These are included in the 
Forum transcripts which are included as exhibit A-4. Written comments 
and questions from four sources were received by mail and facsimile 
during the comment period and are attached. The comments were received 
pursuant to Federal Register Notice 59 F.R. 5581 dated February 7, 
1994. The following substantive issues contained in the comments were 
considered. A summary of written comments, written responses, and the 
oral comments follows this discussion of the substantive issues.
    Comment 1: The allocation of the TVA transmission credit does not 
recognize that the schedules to outside preference customers cannot be 
met without the entire TVA transmission system and fails to compensate 
TVA for the use of its transmission facilities for the delivery of 
these schedules.
    Response: Lacking its own transmission system, transmission 
services are required from TVA to deliver capacity and energy 
allocations to customers outside the TVA system. Rates that have been 
in effect since July 1, 1989 allocate some of the TVA transmission 
charge to the TVA area customers. This rate design was originally 
proposed in order to reallocate what Southeastern viewed as an excess 
transmission charge by TVA. The rate design was not contested at FERC 
by TVA. Southeastern's rate proposal that is effective July 1, 1994 
includes a $7,000,000 credit for TVA's transmission service. TVA area 
customers will not pay a portion of this transmission charge and the 
entire amount will be paid by customers outside the TVA system. This is 
the amount agreed to by Southeastern and TVA after weeks of 
negotiations subsequent to the March 10, 1994 public information and 
comment forum. This issue is further discussed in the Rate Adjustment 
Process and Design section of the Rate Order.
    Comment 2: TVA's customers are being charged for service provided 
by their own system. In effect, they are paying for a portion of the 
TVA system twice.
    Response: The issue of paying for a portion of the TVA system twice 
was reconciled in the negotiated settlement. Customers outside of the 
TVA system bear the full amount of transmission services provided by 
TVA.
    Comment 3: The TVA transmission cost of $12 million which was 
originally proposed by TVA resulted in a rate of $2 per kilowatt per 
month and 1 mill per kilowatt-hour. This rate is too high, not 
justified, and would not pass FERC scrutiny.
    Response: The negotiated settlement between Southeastern and TVA 
allocated reduced the transmission cost from $12 million to $7 million.
    Comment 4: SEPA should not include TVA's increase in their charge 
for transmission services in SEPA's rates until preference customers 
have had ample opportunity to make comments or intervene in some way.
    Response: This objection was addressed in the negotiated rate 
settlement.
    Comment 5: TVA is overcompensated on the amount of energy they get 
with each KW of capacity they receive.
    Response: This comment is understood to address the Cumberland 
Basin Power Marketing Policy which sets forth, among other things, 
capacity and energy allocations in the Cumberland Basin. The Power 
Marketing Policy is set forth in 58 F.R. 41702 published August 5, 
1993. Cumberland Basin System marketing arrangements provide all 
customers with 1,500 hours of energy for each kilowatt of capacity 
allocated by Southeastern. TVA receives 1,500 hours of energy per KW 
and is also allowed to purchase any residual system energy which 
averages 5,000 hours per KW per year.
    Comment 6: Energy should be prorated to all customers and the rate 
increase should be shared among all customers.
    Response: Power allocation is addressed in the power marketing 
policy for the Cumberland system and was not addressed in this rate 
filing. As the result of the negotiated settlement, the transmission 
charge to outside customers was reduced from $12 million to $7 million 
per year.
    Comment 7: East Kentucky should not pay TVA wheeling on the portion 
of its capacity allocation it receives at the Laurel project.
    Response: The Laurel Project is located in the service territory of 
East Kentucky Power Cooperative. All of the output of Laurel is 
delivered to East Kentucky and therefore no other customer receives any 
benefit from this project. Even though TVA does not have an 
interconnection with the Laurel Project bus bar, TVA has 
interconnections with East Kentucky that facilitate the delivery of 
power from elsewhere in the system to provide firming support.
    The Laurel Project was integrated into the Cumberland Basin System 
for repayment in 1984. While the Laurel Project is the highest cost 
project in the Cumberland Basin System, financially integrating the 
project into the system effectively lowers capacity and energy charges 
for East Kentucky and raises the charges for other preference 
customers. Including power from the Laurel Project in the allocation of 
the TVA transmission charge has a similar but opposite impact. The 
transmission charge is lowered for other customers and increased for 
East Kentucky.
    The net impact of these complicated financial and physical 
arrangements provides the lowest possible rates to all of the 
preference customers in the Cumberland Basin system within the meaning 
of Section 5 of the Flood Control Act of 1944.
    Comment 8: The Corps O&M costs are too high.
    Response: The Flood Control Act of 1944 requires Southeastern to 
recover Corps Operation & Maintenance costs allocated to power. Such 
costs are included in this rate. Southeastern agrees that these costs 
are too high and will continue to work with the customers and the Corps 
in an effort to lower the O&M costs on Corps hydropower projects.
    Comment 9: Southeastern's deviation from standard allocation method 
for allocating generation costs places an undue cost burden on 
preference customers in the TVA area.
    Response: Southeastern believes that a standard allocation method, 
where fixed costs are charged to capacity and variable costs are 
charged to energy, is inappropriate for a hydro system because most of 
the costs of a hydro system are fixed. In designing the proposed rates 
in 1984, Southeastern compared utilities in the TVA area and attempted 
to emulate the capacity energy split used in their sales for resale. In 
1984 Southeastern determined that, on average, most utilities in the 
TVA area charged 40 per cent to capacity and 60 per cent to energy. We 
continued this arrangement in 1989. The 1994 rate design, agreed to as 
the result of the negotiated settlement, does not continue the 60/40 
split but establishes a rate for a kilowatt of capacity that includes 
1,500 kwh's of energy. Southeastern believes that this new rate design 
will eliminate the disagreement between TVA and SEPA on capacity energy 
split of costs.
    Comment 10: Since the resources are used primarily for peaking 
purposes, a greater portion of the rate should be allocated to the 
fixed or demand component.
    Response: Power is marketed from the Cumberland Basin System for 
different purposes. In accordance with the Final Power Marketing Policy 
for the Cumberland System of Projects adopted August 5, 1993, 58 F.R. 
41762, customers outside the TVA system receive a base of 1,500 hours 
of energy per kilowatt per year, which makes their allocation peaking 
power. Similarly, in accordance with said policy, customers inside the 
TVA system receive an average of 5,000 additional hours energy per kw 
of capacity, which makes their power similar to a combination of 
peaking and intermediate power. Allocating all costs on the assumption 
that all power from the Cumberland Basin System is a peaking resource 
would have the effect of shifting costs from the inside customers to 
the outside customers. Southeastern does not believe that this would be 
equitable. As a result of the settlement, Southeastern developed a new 
rate design which charges customers inside and outside TVA a base rate 
for a KW of capacity which includes 1,500 KWH. An excess energy charge 
is levied on customers inside TVA that receive residual system energy.
    Comment 11: The methodology used by Southeastern in determining the 
capacity/energy split includes power sales that are not comparable to 
the type of sales made by Southeastern from the Cumberland River 
System.
    Response: Southeastern has developed a new rate design which 
deletes the separate change for capacity and energy and eliminates this 
argument.

Environmental Impact

    Southeastern has reviewed the possible environmental impacts of 
this rate adjustment and has concluded that the increased rates would 
not significantly impact the quality of the human environment within 
the meaning of the National Environmental Policy Act of 1969. The 
proposed rate adjustment is not a major Federal action for which 
preparation of an Environmental Impact Statement is required.

Availability of Information

    Information regarding these rate schedules, including studies, and 
other supporting documentation is available for public review in the 
offices of Southeastern Power Administration, Samuel Elbert Building, 
Elberton, Georgia 30635, and in the Washington Liaison Office, James 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585.

Submission to the Federal Energy Regulatory Commission

    The rates hereinafter confirmed and approved on an interim basis, 
together with supporting documents, will be submitted promptly to the 
Federal Energy Regulatory Commission for confirmation and approval on a 
final basis for a period beginning July 1, 1994, and ending no later 
than June 30, 1999.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective July 1, 1994, attached Wholesale Power Rate 
Schedules CBR-1-C, CSI-1-C, CEK-1-C, CC-1-D, CM-1-C, CK-1-C and CTV-1-
C. The rate schedules shall remain in effect on an interim basis 
through June 30, 1999, unless such period is extended or until the 
Federal Energy Regulatory Commission confirms and approves it or 
substitute rate schedules on a final basis.

    Issued in Washington, DC, June 29, 1994.
William H. White,
Deputy Secretary.

Wholesale Power Rate Schedule CTV-1-C

    Availability: This rate schedule shall be available to the 
Tennessee Valley Authority (hereinafter called TVA).
    Applicability: This rate schedule shall be applicable to electric 
capacity and energy generated at the Dale Hollow, Center Hill, Wolf 
Creek, Old Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell 
Hull Projects (all of such projects being hereafter called collectively 
the ``Cumberland Projects'') and the Laurel Project sold under 
agreement between the Department of Energy and TVA.
    Character of Service: The electric capacity and energy supplied 
hereunder will be three-phase alternating current at a frequency of 
approximately 60 Hertz at the outgoing terminals of the Cumberland 
Projects' switchyards.
    Monthly Rates: The monthly rate for capacity and energy sold under 
this rate schedule shall be:
    Demand Charge: $1.668 per kilowatt/month of total demand as 
determined by the agreement between the Department of Energy and TVA.
    Energy Charge: None.
    Additional Energy Charge: 7.247 mills per kilowatt-hour.
    Energy to be Made Available: The Department of Energy shall 
determine the energy that is available from the projects for 
declaration in the billing month.
    To meet the energy requirements of the Department of Energy's 
customers outside the TVA area (hereinafter called Other Customers), 
749,400 megawatt-hours of net energy shall be available annually 
(including 36,900 megawatt-hours of annual net energy to supplement 
energy available at Laurel Project) provided, that if additional energy 
is required to make a marketing arrangement viable for other customers 
which do not own generating facilities and which are within service 
areas of Kentucky Utilities Company and Carolina Power & Light Company, 
Western Division, such additional energy required shall be made 
available from the Cumberland Projects and shall not exceed 300 
kilowatt-hours per kilowatt per year. The energy requirement of the 
Other Customers shall be available annually, divided monthly such that 
the maximum available in any month shall not exceed 220 hours per 
kilowatt of total Other Customers contract demand, and the minimum 
amount available in any month shall not be less than 60 hours per 
kilowatt of total Other Customers demand.
    In the event that any portion of the capacity allocated to Other 
Customers is not initially delivered to the Other Customers as of the 
beginning of a full contract year (July through June), the 1500 hours, 
plus any such additional energy required as discussed above, shall be 
reduced 1/12 for each month of that year prior to initial delivery of 
such capacity.
    The energy scheduled by TVA for use within the TVA System in any 
billing month shall be the total energy delivered to TVA less (1) an 
adjustment for fast or slow meters, if any, (2) an adjustment for 
Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month 
which is delivered to TVA under the agreement from the Cumberland 
Projects without charge to TVA, (3) the energy scheduled by the 
Department of Energy in said month for the Other Customers plus losses 
of two (2) percent, and (4) station service energy furnished by TVA.
    Each kw of capacity received by TVA includes 1500 kwh of energy. 
Energy received in excess of 1500 kwh will be subject to an additional 
energy charge identified in the monthly rates section of this rate 
schedule.
    Billing Month: The billing month for capacity and energy sold under 
this schedule shall end at 2400 hours CDT or CST, whichever is 
currently effective, on the last day of each calendar month.
    Contract Year: For purposes of this rate schedule, a contract year 
shall be as in Section 13.1 of the Southeastern Power Administration--
Tennessee Valley Authority Contract.
    Service Interruption: When delivery of capacity to TVA is 
interrupted or reduced due to conditions on the Department of Energy's 
system which are beyond its control, the Department of Energy will 
continue to make available the portion of its declaration of energy 
that can be generated with the capacity available.
    For such interruption or reduction (exclusive of any restrictions 
provided in the agreement) due to conditions on the Department of 
Energy's system which have not been arranged for and agreed to in 
advance, the demand charge for scheduled capacity made available to TVA 
will be reduced as to the kilowatts of such scheduled capacity which 
have been so interrupted or reduced for each day in accordance with the 
following formula: 

----------------------------------------------------------------------------------------------------------------
                                                       Monthly capacity charge            Agreement capacity    
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12   x  Number of days in billing     x  880,000 kilowatts.        
 hours in any calendar day.                           month.                                                    
----------------------------------------------------------------------------------------------------------------

    The agreement capacity related to the 76,000 kilowatts of capacity 
allocated to the Other Customers in the Carolina Power & Light Company 
and Kentucky Utilities service areas shall, irrespective of sale to 
Other Customers, remain in effect in the formula throughout the term of 
this rate schedule.
    Power Factor: TVA shall take capacity and energy from the 
Department of Energy at such power factor as will best serve TVA's 
system from time to time; provided, that TVA shall not impose a power 
factor of less than .85 lagging on the Department of Energy's 
facilities which requires operation contrary to good operating practice 
or results in overload or impairment of such facilities.

    Dated: July 1, 1994.

Wholesale Power Rate Schedule CBR-1-C

    Availability: This rate schedule shall be available to Big Rivers 
Electric Corporation and includes the City of Henderson, Kentucky, 
(hereinafter called the Customer).
    Applicability: This rate schedule shall be applicable to electric 
capacity and energy available from the Dale Hollow, Center Hill, Wolf 
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') 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 sixty hertz. The power shall be delivered at nominal 
voltages of 13,800 volts and 161,000 volts to the transmission system 
of Big Rivers Electric Corporation.
    Points of Delivery: Capacity and energy delivered to the Customer 
will be delivered at points of interconnection of the Customer at the 
Barkley Project Switchyard, at a delivery point in the vicinity of the 
Paradise steam plant and at such other points of delivery as may 
hereafter be agreed upon by the Government and TVA.
    Monthly Rate: The monthly rate for capacity and energy sold under 
this rate schedule shall be:
    Demand charge: $2.738 per kilowatt/month of total contract demand.
    Energy Charge: None.
    Energy to be Furnished by the Government: The Government shall make 
available each contract year to the customer from the Projects through 
the customer's interconnections with TVA and the customer will schedule 
and accept an allocation of 1,500 kilowatt-hours of energy delivered at 
the TVA border for each kilowatt of contract demand. A contract year is 
defined as the 12 months beginning July 1 and ending at midnight June 
30 of the following calendar year. The energy made available for a 
contract year shall be scheduled monthly such that the maximum amount 
scheduled in any month shall not exceed 220 hours per kilowatt of the 
customer's contract demand and the minimum amount scheduled in any 
month shall not be less than 60 hours per kilowatt of the customer's 
contract demand. The customer may request and the Government may 
approve energy scheduled for a month greater than 220 hours per 
kilowatt of the customer's contract demand; provided, that the combined 
schedule of all SEPA customers outside TVA and served by TVA does not 
exceed 220 hours per kilowatt of the total contract demands of these 
customers.
    Billing Month: The billing month for power sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective, 
on the last day of each calendar month.
    Conditions of Service: The customer shall at its own expense 
provide, install, and maintain on its side of each delivery point the 
equipment necessary to protect and control its own system. In so doing, 
the installation, adjustment, and setting of all such control and 
protective equipment at or near the point of delivery shall be 
coordinated with that which is installed by and at the expense of TVA 
on its side of the delivery point.
    Service Interruption: When delivery of capacity is interrupted or 
reduced due to conditions on the Administrator's system beyond his 
control, the Administrator will continue to make available the portion 
of his declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula: 

----------------------------------------------------------------------------------------------------------------
                                                       Monthly capacity charge              Contract demand     
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12   x  Number of days in billing     x  *880,000 kilowatts.       
 hours in any calendar day.                           month.                                                    
----------------------------------------------------------------------------------------------------------------

    Dated: July 1, 1994.

Wholesale Power Rate Schedule CSI-1-C

    Availability: This rate schedule shall be available to Southern 
Illinois Power Cooperative (hereinafter the Customer).
    Applicability: This rate schedule shall be applicable to electric 
capacity and energy available from the Dale Hollow, Center Hill, Wolf 
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') 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 sixty hertz. The power shall be delivered at nominal 
voltages of 13,800 volts and 161,000 volts to the transmission system 
of Big Rivers Electric Corporation.
    Points of Delivery: Capacity and energy delivered to the Customer 
will be delivered at points of interconnection of the Customer at the 
Barkley Project Switchyard, at a delivery point in the vicinity of the 
Paradise steam plant and at such other points of delivery as may 
hereafter be agreed upon by the Government and TVA.
    Monthly Rate: The monthly rate for capacity and energy sold under 
this rate schedule shall be:
    Demand Charge: $2.738 per kilowatt/month of total contract demand.
    Energy Charge: None.
    Energy to be Furnished by the Government: The Government shall make 
available each contract year to the customer from the Projects through 
the customer's interconnections with TVA and the customer will schedule 
and accept an allocation of 1,500 kilowatt-hours of energy delivered at 
the TVA border for each kilowatt of contract demand. A contract year is 
defined as the 12 months beginning July 1 and ending at midnight June 
30 of the following calendar year. The energy made available for a 
contract year shall be scheduled monthly such that the maximum amount 
scheduled in any month shall not exceed 220 hours per kilowatt of the 
customer's contract demand and the minimum amount scheduled in any 
month shall not be less than 60 hours per kilowatt of the customer's 
contract demand. The customer may request and the Government may 
approve energy scheduled for a month greater than 220 hours per 
kilowatt of the customer's contract demand; provided, that the combined 
schedule of all SEPA customers outside TVA and served by TVA does not 
exceed 220 hours per kilowatt of the total contract demands of these 
customers.
    Billing Month: The billing month for power sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective, 
on the last day of each calendar month.
    Service Interruption: When delivery of capacity is interrupted or 
reduced due to conditions on the Administrator's system beyond his 
control, the Administrator will continue to make available the portion 
of his declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula: 

----------------------------------------------------------------------------------------------------------------
                                                       Monthly capacity charge              Contract demand     
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12   x  Number of days in billing     x  *880,000 kilowatts.       
 hours in any calendar day.                           month.                                                    
----------------------------------------------------------------------------------------------------------------

    Dated: July 1, 1994.

Wholesale Power Rate Schedule CEK-1-C

    Availability: This rate schedule shall be available to East 
Kentucky Power Cooperative (hereinafter called the Customer).
    Applicability: This rate schedule shall be applicable to electric 
capacity and energy available from the Dale Hollow, Center Hill, Wolf 
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and power available from the Laurel 
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 sixty hertz. The power shall be delivered at nominal 
voltages of 161,000 volts to the transmission systems of the Customer.
    Points of Delivery: The points of delivery will be the 161,000 volt 
bus of the Wolf Creek Power Plant and the 161,000 volt bus of the 
Laurel Project. Other points of delivery may be as agreed upon.
    Monthly Rate: The monthly rate for capacity and energy sold under 
this rate schedule from the Cumberland Projects shall be:
    Demand Charge: $2.738 per kilowatt/month of total contract demand.
    Energy Charge: None.
    Energy to be Furnished by the Government: The Government shall make 
available each contract year to the customer from the Projects through 
the customer's interconnections with TVA and the customer will schedule 
and accept an allocation of 1,500 kilowatt-hours of energy delivered at 
the TVA border for each kilowatt of contract demand plus 369 kilowatt-
hours of energy delivered for each kilowatt of contract demand to 
supplement energy available at the Laurel Project. A contract year is 
defined as the 12 months beginning July 1 and ending at midnight June 
30 of the following calendar year. The energy made available for a 
contract year shall be scheduled monthly such that the maximum amount 
scheduled in any month shall not exceed 220 hours per kilowatt of the 
customer's contract demand and the minimum amount scheduled in any 
month shall not be less than 60 hours per kilowatt of the customer's 
contract demand. The customer may request and the Government may 
approve energy scheduled for a month greater than 220 hours per 
kilowatt of the customer's contract demand; provided, that the combined 
schedule of all SEPA customers outside TVA and served by TVA does not 
exceed 220 hours per kilowatt of the total contract demands of these 
customers.
    Billing Month: The billing month for power sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective, 
on the last day of each calendar month.
    Conditions of Service: The customer shall at its own expense 
provide, install, and maintain on its side of each delivery point the 
equipment necessary to protect and control its own system. In so doing, 
the installation, adjustment and setting of all such control and 
protective equipment at or near the point of delivery shall be 
coordinated with that which is installed by and at the expense of TVA 
on its side of the delivery point.
    Service Interruption: When delivery of capacity is interrupted or 
reduced due to conditions on the Administrator's system beyond his 
control, the Administrator will continue to make available the portion 
of his declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula: 

----------------------------------------------------------------------------------------------------------------
                                                       Monthly capacity charge              Contract demand     
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12   x  Number of days in billing     x  880,000 kilowatts.        
 hours in any calendar day.                           month.                                                    
----------------------------------------------------------------------------------------------------------------

    Dated: July 1, 1994.

Wholesale Power Rate Schedule CM-1-C

    Availability: This rate schedule shall be available to the South 
Mississippi Electric Power Association and Municipal Energy Agency of 
Mississippi (hereinafter called the Customers).
    Applicability: This rate schedule shall be applicable to electric 
capacity and energy available from the Dale Hollow, Center Hill, Wolf 
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') 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 sixty hertz. The power shall be delivered at nominal 
voltages of 161,000 volts to the transmission systems of Mississippi 
Power and Light.
    Points of Delivery: The points of delivery will be at 
interconnection points of the Tennessee Valley Authority system and the 
Mississippi Power and Light system. Other points of delivery may be as 
agreed upon.
    Monthly Rate: The monthly rate for capacity and energy sold under 
this rate schedule shall be:
    Demand Charge: $2.738 per kilowatt/month of total contract demand.
    Energy Charge: None.
    Energy to be Furnished by the Government: The Government shall make 
available each contract year to the Customer from the Projects through 
the Customer's interconnections with TVA and the Customer will schedule 
and accept an allocation of 1,500 kilowatt-hours of energy delivered at 
the TVA border for each kilowatt of contract demand. A contract year is 
defined as the 12 months beginning July 1 and ending at midnight June 
30 of the following calendar year. The energy made available for a 
contract year shall be scheduled monthly such that the maximum amount 
scheduled in any month shall not exceed 220 hours per kilowatt of the 
Customer's contract demand and the minimum amount scheduled in any 
month shall not be less than 60 hours per kilowatt of the Customer's 
contract demand. The Customer may request and the Government may 
approve energy scheduled for a month greater than 220 hours per 
kilowatt of the Customer's contract demand; provided, that the combined 
schedule of all SEPA Customers outside TVA and served by TVA does not 
exceed 220 hours per kilowatt of the total contract demands of these 
Customers.
    In the event that any portion of the capacity allocated to the 
Customers is not initially delivered to the Customers as of the 
beginning of a full contract year, the 1500 kilowatt hours shall be 
reduced \1/12\ for each month of that year prior to initial delivery of 
such capacity.
    Billing Month: The billing month for power sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective on 
the last day of each calendar month.
    Service Interruption: When delivery of capacity is interrupted or 
reduced due to conditions on the Administrator's system beyond his 
control, the Administrator will continue to make available the portion 
of his declaration of energy that can be generated with the capacity 
available.
    For such interruption or reduction due to conditions on the 
Administrator's system which have not been arranged for and agreed to 
in advance, the demand charge for capacity made available will be 
reduced as to the kilowatts of such capacity which have been 
interrupted or reduced in accordance with the following formula: 

----------------------------------------------------------------------------------------------------------------
                                                       Monthly capacity charge              Contract demand     
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12   x  Number of days in billing     x  880,000 kilowatts.        
 hours in any calendar day.                           month.                                                    
----------------------------------------------------------------------------------------------------------------

    Dated: July 1, 1994.

Wholesale Power Rate Schedule CC-1-D

    Availability: This rate schedule shall be available to public 
bodies and cooperatives served through the facilities of Carolina Power 
& Light Company, Western Division (hereinafter called the Customers).
    Applicability: This rate schedule shall be applicable to electric 
capacity and energy available from the Dale Hollow, Center Hill, Wolf 
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') 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 sixty hertz. The power shall be delivered at nominal 
voltages of 161,000 volts to the transmission system of Carolina Power 
& Light Company, Western Division.
    Points of Delivery: The points of delivery will be at 
interconnecting points of the Tennessee Valley Authority system and the 
Carolina Power & Light Company, Western Division system. Other points 
of delivery may be as agreed upon.
    Monthly Rate: The monthly rate for capacity and energy sold under 
this rate schedule shall be:
    Demand Charge: $3.116 per kilowatt/month of total contract demand.
    Energy Charge: None.
    Transmission Charge: $1.6254 per kilowatt of total contract demand.
    The transmission rate is subject to annual adjustment on April 1 of 
each year and will be computed subject to the formula in Appendix A 
attached to the Government--Carolina Power & Light Company contract.
    Energy to be Furnished by the Government: The Government will sell 
to the customer and the customer will purchase from the Government 
energy each billing month equivalent to a percentage specified by 
contract of the energy made available to Carolina Power & Light Company 
(less six percent (6%) losses). The Customer's contract demand and 
accompanying energy allocation will be divided pro rate among its 
individual delivery points served from the Carolina Power & Light 
Company's, Western Division transmission system.
    Billing Month: The billing month for power sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective, 
on the last day of each calendar month.

    Dated: July 1, 1994.

Wholesale Power Rate Schedule CK-1-C

    Availability: This rate schedule shall be available to public 
bodies served through the facilities of Kentucky Utilities Company, 
(hereinafter called the Customers.)
    Applicability: This rate schedule shall be applicable to electric 
capacity and energy available from the Dale Hollow, Center Hill, Wolf 
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') 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 sixty hertz. The power shall be delivered at nominal 
voltages of 161,000 volts to the transmission systems of Kentucky 
Utilities Company.
    Points of Delivery: The points of delivery will be at 
interconnecting points between the Tennessee Valley Authority system 
and the Kentucky Utilities Company system. Other points of delivery may 
be as agreed upon.
    Monthly Rate: The monthly rate for capacity and energy sold under 
this rate schedule shall be:
    Demand charge: $2.738 per kilowatt/month of total contract demand.
    Energy Charge: None.
    Additional Energy Charge: 7.247 mills per kilowatt-hour.
    Transmission Charge: The transmission charge will be that 
negotiated between the Government and Kentucky Utilities Company and 
will be subject to adjustment according to the terms of the contracts.
    Energy to be Furnished by the Government: The Government shall make 
available each contract year to the Customer from the Projects through 
the Customer's interconnections with TVA and the Customer will schedule 
and accept an allocation of 1,500 kilowatt-hours of energy delivered at 
the TVA border for each kilowatt of contract demand. A contract year is 
defined as the 12 months beginning July 1 and ending at midnight June 
30 of the following calendar year. The energy made available for a 
contract year shall be scheduled monthly such that the maximum amount 
scheduled in any month shall not exceed 220 hours per kilowatt of the 
Customer's contract demand and the minimum amount scheduled in any 
month shall not be less than 60 hours per kilowatt of the Customer's 
contract demand. The Customer may request and the Government may 
approve energy scheduled for a month greater than 220 hours per 
kilowatt of the Customer's contract demand; provided, that the combined 
schedule of all SEPA Customers outside TVA and served by TVA does not 
exceed 220 hours per kilowatt of the total contract demands of these 
Customers.
    In the event that any portion of the capacity allocated to the 
Customers is not initially delivered to the Customers as of the 
beginning of a full contract year, the 1500 kilowatt hours shall be 
reduced 1/12 for each month of that year prior to initial delivery of 
such capacity.
    For billing purposes, each kilowatt of capacity will include 1500 
kilowatt-hours energy per year. Customers will pay for additional 
energy at the additional energy rate.
    Billing Month: The billing month for power sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective on 
the last day of each calendar month.

[FR Doc. 94-16991 Filed 7-12-94; 8:45 am]
BILLING CODE 6450-01-P