[Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
[Notices]
[Pages 42560-42563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20284]



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DEPARTMENT OF ENERGY
Western Area Power Administration


Notice of Amended Rate Schedule

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Amended Rate Schedule CV-F7.

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SUMMARY: Notice is given of the confirmation and approval by the Deputy 
Secretary of the Department of Energy of Amended Rate Schedule CV-F7 
from the Central Valley Project (CVP) of the Western Area Power 
Administration (Western) into effect on an interim basis. The interim 
Amended Rate Schedule CV-F7, will remain in effect on an interim basis 
until the Federal Energy Regulatory Commission (FERC) confirms, 
approves, and places it into effect on a final basis or until it is 
replaced by another rate schedule.
    Rate Schedule CV-F7, Schedule for Rates for Commercial Firm-Power 
Service under Rate Order No. WAPA-59, was approved by FERC on September 
22, 1993, under FERC Docket No. EF93-5011-000. The rates were placed in 
effect for the period beginning May 1, 1993, through April 30, 1998.
    The methodology for the revenue adjustment clause (RAC) was 
included in Rate Schedule CV-F7 and included provisions for a $20 
million maximum allocation of the RAC credit or surcharge. The Amended 
Rate Schedule CV-F7 modifies the maximum allocation of the RAC credit 
of $20 million by the amount of the Pacific Gas and Electric Company 
(PG&E) refund credit applied to the Western power bills for the fiscal 
year. The $20 million maximum allocation for the RAC surcharge remains 
unchanged, as do all other provisions of CVP Rate Schedule CV-F7.

DATES: Amended Rate Schedule CV-F7 will be placed into effect on an 
interim basis prior to October 1, 1995, and will be in effect until 
FERC confirms, approves, and places the rate schedule in effect on a 
final basis through April 30, 1998, the remaining time period of the 
current Rate Schedule CV-F7, or until the rate schedule is superseded.

FOR FURTHER INFORMATION CONTACT:

Mr. James C. Feider, Area Manager, Sacramento Area Manager, Western 
Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630, (916) 
649-4418
Mr. Robert Fullerton, Acting Director, Division of Power Marketing, 
Western Area Power Administration, P.O. Box 3402, Golden, CO 80401-
0098, (303) 275-1610
Mr. Joel Bladow, Assistant Administrator for Washington Liaison, Power 
Marketing Liaison Office, Room 8G-027, Forrestal Building, 1000 
Independence Avenue SW., Washington, DC 20585-0001, (202) 586-5581

SUPPLEMENTARY INFORMATION: The RAC compares projected net revenue with 
actual net revenue for each fiscal year. If the net difference is 
positive, a RAC credit is applied to the customers' power bills during 
the next January 1 to September 30 period. If the net difference is 
negative, a RAC surcharge is applied to customers' power bills in an 
amount equal to any deficit in repayment of annual expenses plus a 
minimum investment payment equal to the lesser of 1 percent of unpaid 
investment or projected investment payment. The maximum allocation of a 
RAC credit or surcharge on customers' power bills is $20 million 
annually.
    In February 1992, Western and the PG&E entered into a settlement 
agreement (Settlement) which provided for annual reconciliation of 
estimated energy and capacity rates based on actual PG&E thermal costs. 
To date, the Settlement has resulted in refunds to Western which are 
applied as credits against amounts owed by Western to PG&E. The 
application of the credits reduces Western's purchase power expense 
which may increase Western's net revenue. Since the current RAC 
methodology provides for a $20 million cap, Western's customers may not 
realize the full benefit of the Settlement amounts.
    Discussions on the proposed amendment to the RAC methodology were 
initiated at a customer meeting held on February 14, 1995. Western 
received favorable comments following the meeting, and pursued 
development of the proposed amendment. Representatives from the CVP 
customer base reviewed and supported the amendment. On April 10, 1995, 
Western sent a letter to all CVP customers requesting written comments 
on the proposed amendment and establishing a comment period through May 
15, 1995. Western received three written comments during the comment 
period. All comments supported the interim amendment, with one comment 
requesting that future savings resulting from changes in Western's 
purchase 

[[Page 42561]]
power contracts also be included in the RAC methodology. Western is 
planning a rate adjustment to accommodate any change in purchase power 
contracts.
    The intent of amending the RAC would allow the net revenue, 
resulting from the PG&E/Western rate reconciliation, to be passed on to 
Western's customers as a RAC credit if there is no impact on CVP 
projected repayment. The extent of the amendment would change the 
maximum allocation of the RAC credit of $20 million by the amount of 
the PG&E refund credit applied to the Western power bills for the 
fiscal year. The current $20 million maximum allocation for the RAC 
surcharge will not be changed.
    The RAC amendment does not change the rates, power repayment study, 
or any other documentation filed with the original Rate Order No. WAPA-
59.
    Confirmation, approval, and placement of Amended Rate Schedule CV-
F7 into effect on an interim basis, is issued, and the Amended Rate 
Schedule CV-F7 will be submitted promptly to FERC for confirmation and 
approval on a final basis.

    Issued in Washington, DC, August 8, 1995.
Bill White,
Deputy Secretary.
Order Confirming, Approving, and Placing the Central Valley Project 
Amended Rate Schedule CV-F7 Into Effect on an Interim Basis

    In the matter of: Western Area Power Administration Amended Rate 
Schedule CV-F7, Central Valley Project.

August 8, 1995.
    The original Rate Schedule CV-F7, for commercial firm power rates, 
was established pursuant to section 302(a) of the Department of Energy 
(DOE) Organization Act, 42 U.S.C. 7101 et seq., through which the power 
marketing functions of the Secretary of the Interior and the Bureau of 
Reclamation (Reclamation) under the Reclamation Act of 1902, 43 U.S.C. 
371 et seq., as amended and supplemented by subsequent enactments, 
particularly section 9(c) of the Reclamation Project Act of 1939, 43 
U.S.C. 485h(c), and other acts specifically applicable to the project 
system involved were transferred to and vested in the Secretary of 
Energy (Secretary).
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary delegated (1) the 
authority to develop long-term power and transmission rates on a 
nonexclusive basis to the Administrator of the Western Area Power 
Administration (Western); (2) the authority to confirm, approve, and 
place such rates into effect on an interim basis to the Deputy 
Secretary; 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). Existing DOE procedures 
for public participation in power rate adjustments are located at 10 
CFR Part 903.

Acronyms and Definitions

    As used in this rate order, the following acronyms and definitions 
apply:

CVP: Central Valley Project.
DOE: U. S. Department of Energy.
FERC: Federal Energy Regulatory Commission.
FY: Fiscal year.
Net Revenue: Revenue remaining after paying all annual expenses.
PG&E: Pacific Gas and Electric Company.
RAC: Revenue Adjustment Clause.
Rate Schedule CV-F7: The current rate schedule for commercial firm 
power service, approved by FERC on September 22, 1993, under FERC 
Docket No. EF93-5011-000.
Secretary: Secretary of Energy.
Western: Western Area Power Administration.

Effective Date

    The Amended Rate Schedule CV-F7 will become effective on an interim 
basis prior to October 1, 1995, and will be in effect pending FERC's 
approval on a final basis for a 2\1/2\-year period, the remaining 
effective period for Rate Schedule CV-F7, or until superseded.

Public Notice and Comment

    The Procedures for Public Participation in Power and Transmission 
Rate Adjustments and Extensions, 10 CFR Part 903, have been followed by 
Western in the development of this amended rate schedule. The following 
summarizes the steps Western took to ensure involvement of interested 
parties in the rate process:
    1. On February 14, 1995, Western proposed the amendment to the RAC 
methodology at a customer meeting.
    2. On April 10, 1995, Western sent a letter to all CVP customers 
requesting written comments on the proposed amendment and established a 
comment period through May 15, 1995.

Discussion

    The RAC, included under Rate Schedule CV-F7, compares projected net 
revenue with actual net revenue for a FY. If the net difference is 
positive, a RAC credit is applied to the customers' power bills during 
the next January 1 to September 30 period. If the difference is 
negative, a RAC surcharge is applied to the customers' power bills in 
an amount equal to any deficit in repayment of annual expenses plus a 
minimum investment payment equal to the lesser of 1 percent of the 
unpaid investment or projected investment payment. Under Rate Schedule 
CV-F7, the maximum allocation for RAC credits or surcharges is $20 
million.
    Basis for Amendment to Current Rate Schedule CV-F7 in February 
1992, Western and the PG&E entered into a settlement agreement 
(Settlement) which provided for annual reconciliation of estimated 
energy and capacity rates based on actual PG&E thermal costs. To date, 
the Settlement has resulted in refunds to Western which are applied as 
credits against amounts owed by Western to PG&E. The application of the 
credits reduces Western's purchase power expense which may increase 
Western's net revenue. Since the current RAC methodology provides for a 
$20 million cap, Western's customers may not realize the full benefit 
of the Settlement amounts.
    The intent of amending the RAC would allow the net revenue, 
resulting from the PG&E/Western rate reconciliation, to be passed on to 
Western's customers as a RAC credit if there is no impact on CVP 
projected repayment. The extent of the amendment would change the 
maximum allocation of the RAC credit of $20 million by the amount of 
the PG&E refund credit applied to the Western power bills for the 
fiscal year. The current $20 million maximum allocation for the RAC 
surcharge will not be changed.

Comments

    During the 30-day comment period, Western received three written 
comments regarding the proposed change in the RAC. All three commentors 
agreed with the proposal, with one commentor additionally requesting 
Western add any savings from changes in Western's purchase power 
contracts. Western is planning a rate adjustment to accommodate any 
change in purchase power contracts.
    Written comments were received from the following sources:

Bay Area Rapid Transit (California)
Northern California Power Agency (California)
Sacramento Municipal Utility District (California)

[[Page 42562]]


Environmental Evaluation

    In compliance with the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.); Council on Environmental Quality Regulations 
(40 CFR parts 1500 through 1508); and DOE NEPA Regulations (10 CFR part 
1021), Western has determined that this action is categorically 
excluded from the preparation of an environmental assessment or an 
environmental impact statement.

Executive Order 12866

    DOE has determined that this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western 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

    All studies, comments, letters, memoranda, or other documents made 
or kept by Western for the purpose of developing Amended Rate Schedule 
CV-F7, are and will be made available for inspection and copying at the 
Sacramento Area Office, located at 1825 Bell Street, Suite 105, 
Sacramento, California 95825; Western Area Power Administration, 
Division of Power Marketing, PO Box 3402, Golden, Colorado 80401; and 
Power Marketing Liaison Office, Office of the Assistant Administrator 
for Washington Liaison, Room 8G-061, Forrestal Building, 1000 
Independence Avenue SW., Washington, DC 20585.

Submission to Federal Energy Regulatory Commission

    Amended Rate Schedule CV-F7 herein confirmed, approved, and placed 
into effect on an interim basis, together with supporting documents, 
will be submitted to FERC for confirmation and approval on a final 
basis.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I confirm and approve on an interim 
basis, effective prior to October 1, 1995, Amended Rate Schedule CV-F7 
for the Central Valley Project. The amended rate schedule shall remain 
in effect on an interim basis, pending the Federal Energy Regulatory 
Commission confirmation and approval on a final basis, through April 
30, 1998, or until the rate schedule is superseded.

    Issued in Washington, DC, August 8, 1995.
Bill White,
Deputy Secretary.

Amended Rate Schedule CV-F7

(Supersedes Schedule CV-F7)

Central Valley Project; Schedule of Rates for Commercial Firm-power 
Service

Effective

    October 1, 1995.

Available

    Within the marketing area served by the Sacramento Area Office.

Applicable

    To the commercial firm-power customers for general power service 
supplied through one meter, at one point of delivery, unless otherwise 
provided by contract.

Character

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

Monthly Rates

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                      Period                                Capacity                         Energy             
----------------------------------------------------------------------------------------------------------------
10/01/95-09/30/97................................  $6.57/kW/month............  Base: 17.73 mills/kWh.           
                                                                               Tier: 34.70 mills/kWh.           
10/01/97-04/30/98................................  $7.16/kW/month............  Base: 19.33 mills/kWh.           
                                                                               Tier: 37.46 mills/kWh.           
----------------------------------------------------------------------------------------------------------------

Billing

    Demand: The rates listed above for capacity shall be the charge per 
kilowatt (kW) of billing demand. The billing demand is the highest 30-
minute integrated demand measured or scheduled during the month up to, 
but not in excess of, the delivery obligation under the power sales 
contract.
    Energy: The rates listed above for energy shall be a charge per 
kilowatthour (kWh) for all energy use up to, but not in excess of, the 
maximum kWh obligation of the United States during the month as 
established under the power sales contract.
    The energy base rate shall be applied to all energy sales below a 
70-percent monthly load factor. The energy tier rate shall be applied 
to all energy sales at a 70-percent and higher monthly load factor. The 
monthly load factor shall be calculated based on the lesser of the 
customer's (1) maximum demand for the month or, if a scheduled 
customer, the maximum scheduled demand for the month; or (2) the 
contract rate of delivery. Only power offered under this Amended Rate 
Schedule CV-F7 will be used in the calculation of the load factor.

Adjustments

Billing for Unauthorized Overruns
    For each billing period in which there is a contract violation 
involving an unauthorized overrun of the contractual obligation for 
capacity and/or energy, such overrun shall be billed at 10 times the 
applicable rates above. The energy base rate will be used as the 
overrun rate for energy.
For Revenue Adjustment
    The following methodology shall be used for the revenue adjustment 
clause (RAC) calculation:
    1. If the actual net revenue is greater than the projected net 
revenue for the RAC calculation period, a revenue credit will be 
allocated during the RAC adjustment period. The credit will equal the 
difference between the actual net revenue and projected net revenue, 
represented by the following formula:

ANR > PNR; C = ANR -PNR

Where:

ANR = Actual Net Revenue
PNR = Projected Net Revenue
C = Credit

    2. If actual net revenue is less than the projected net revenue for 
the RAC calculation period, a revenue surcharge will be allocated 
during the RAC adjustment period.
    2.1  If the actual net revenue is negative, the surcharge will be 
equal to the minimum investment payment plus the annual deficit, 
represented by the following formula:

ANR < PNR and < O; S = MIP + AD

Where:
ANR = Actual Net Revenue
PNR = Projected Net Revenue
MIP = Minimum Investment Payment
AD = Annual Deficit
S = Surcharge
    2.2  If the actual net revenue is positive, the surcharge will 
equal the 

[[Page 42563]]
minimum investment payment less the actual net revenue, represented by 
the following formula:

ANR < PNR and > 0; S = MIP - ANR (if ANR > MIP, S = 0)

Where:

ANR = Actual Net Revenue
PNR = Projected Net Revenue
MIP = Minimum Investment Payment
S = Surcharge

    Provided, that if the actual net revenue is greater than the 
minimum investment payment, the surcharge will be equal to zero.
    3. The maximum RAC credit allocation will equal $20 million plus 
the amount of the Pacific Gas and Electric Company refund credit 
applied to Western power bills for the fiscal year. The maximum 
allocation for a RAC surcharge shall not exceed $20 million.
    4. The RAC credit or surcharge shall be allocated to each Central 
Valley Project (CVP) commercial firm-power customer based on the 
proportion of the customer's billed obligation to Western for CVP 
commercial firm capacity and energy to the total billed obligation for 
all CVP commercial firm-power customers for CVP commercial firm 
capacity and energy for the RAC calculation period.
    5. For purposes of the RAC calculation, the following terms are 
defined:
    5.1  Actual Net Revenue--The Recorded Net Revenue.
    5.2  Annual Deficit--The amount the recorded annual expenses, 
including interest, exceed recorded annual revenues.
    5.3  Minimum Investment Payment--The lesser of 1 percent of the 
recorded unpaid investment balance at the end of the prior FY that the 
RAC is being calculated, or the projected net revenue.
    5.4  Projected Net Revenue--The annual net revenue available for 
investment repayment projected in the PRS for the rate case during the 
FY that the RAC is being calculated (see Table 1).
    5.5  RAC Adjustment Period--The period January 1 through September 
30, following the RAC calculation period when credits or surcharges 
will be applied to the power bills.
    5.6  RAC Calculation Period--The last recorded FY (October 1 
through September 30).
    5.7  Recorded Net Revenue--The annual net revenue available for 
repayment recorded in the PRS for the FY that the RAC is being 
calculated.
    6. Subject to modification by a superseding rate schedule, the 
final RAC will be allocated to the customers during the period January 
1, 1999, to September 30, 1999.

 Table 1.-- Projected Net Revenue Available for Investment Repayment for
                        Revenue Adjustment Clause                       
------------------------------------------------------------------------
                                                           Projected net
                         Period                               revenue   
------------------------------------------------------------------------
October 1, 1995-September 30, 1996......................     $14,430,107
October 1, 1996-September 30, 1997......................       1,051,664
October 1, 1997-September 30, 1998......................       9,595,452
------------------------------------------------------------------------

For Transformer Losses

    If delivery is made at transmission voltage but metered on the low-
voltage side of the substation, the meter readings will be increased to 
compensate for transformer losses as provided for in the contract.

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. The low power factor charge (LPFC) will be calculated by 
multiplying the customer's maximum monthly demand by the kilovar 
(kVar)/kW rate for the customer's mean power factor as provided in the 
following Table 2:

                      Table 2.--kVar/kW Rate Table                      
------------------------------------------------------------------------
                          Power factor                             Rate 
------------------------------------------------------------------------
0.94...........................................................     0.09
0.93...........................................................     0.17
0.92...........................................................     0.24
0.91...........................................................     0.32
0.90...........................................................     0.39
0.89...........................................................     0.46
0.88...........................................................     0.53
0.87...........................................................     0.60
0.86...........................................................     0.66
0.85...........................................................     0.73
0.84...........................................................     0.79
0.83...........................................................     0.86
0.82...........................................................     0.92
0.81...........................................................     0.99
0.80...........................................................     1.05
0.79...........................................................     1.12
0.78...........................................................     1.18
0.77...........................................................     1.25
0.76...........................................................     1.32
0.75 and below.................................................     1.38
------------------------------------------------------------------------

    A LPFC will be assessed when a customer's power factor is less than 
95 percent.
    (a) A charge of $2.50 per kVar will be assessed for every kVar 
required to raise a customer's power factor to 95 percent. The 
calculated power factor used to determine if a charge will be assessed 
is the arithmetic mean of a customer's measured monthly average power 
factor and their measured onpeak power factor, rounded to the nearest 
whole percent with 0.5 percent or greater rounded to the next higher 
percent.
    (b) The mean power factor will be calculated at each customer's 
point of delivery. If a customer has multiple points of delivery, the 
power factor will be determined from totalized information from the 
points of delivery.
    (c) No credit will be given for customers operating between 95 
percent and 100 percent.
    (d) Customers that have a monthly peak demand less than or equal to 
50 kW will not be subject to the LPFC.
    (e) The Contracting Officer may waive the LPFC for good cause in 
whole or in part.

[FR Doc. 95-20284 Filed 8-15-95; 8:45 am]
BILLING CODE 6450-01-P