[Federal Register Volume 64, Number 156 (Friday, August 13, 1999)]
[Notices]
[Pages 44361-44366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20804]


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DEPARTMENT OF ENERGY

Bonneville Power Administration


Proposed Correction of Errors in the Firm Power Products and 
Services Rate Schedule (FPS-96): Clarifying the Applicability of the 
FPS-96 Contract Rate to Certain Capacity With Energy Return Contracts, 
Public Hearing, and Opportunity for Public Review and Comment

AGENCY: Bonneville Power Administration (BPA), Department of Energy 
(DOE).

ACTION: Notice of Proposed Correction of Errors in the Firm Power 
Products and Services Rate Schedule (FPS-96): Clarifying the 
Applicability of the FPS-96 Contract Rate to Certain Capacity With 
Energy Return Contracts.

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SUMMARY: BPA unbundled its wholesale power and transmission products in 
its 1996 rate case. Pursuant to this unbundling, several of BPA's 
wholesale power rate schedules included separate rates for sales of 
firm capacity with energy returns (commonly referred to as capacity 
without energy). Although clarifying language was mistakenly omitted 
from the FPS-96 rate schedule, the record established that it was BPA's 
intent that the firm capacity with energy returns product would be sold 
at a negotiated price.
    Certain BPA contracts executed prior to October 1, 1996, provide 
that BPA supply capacity without energy at the demand charge in the 
Contract Rate of

[[Page 44362]]

the then applicable surplus firm power rate schedule. BPA erred in the 
FPS-96 rate schedule when it failed to expressly state in that schedule 
that the capacity without energy product would be priced at a 
negotiated rate. The demand charge in the Contract Rate section of FPS-
96 was priced to be sold only in conjunction with the purchase of the 
separate energy product in that section. This action is intended to 
correct those errors.

DATES: The prehearing conference will be held on August 24, 1999, from 
1:00 p.m. to 4:00 p.m., Room 223, 911 N.E. 11th, Portland, Oregon. 
Written comments by participants must be received by October 13, 1999, 
to be considered in the Record of Decision (ROD).

ADDRESSES: BPA's initial rate proposal in this proceeding will be 
available for examination on August 24, 1999 at BPA's Public 
Information Center, BPA Headquarters Building, 1st Floor, 905 N.E. 
11th, Portland, Oregon. Written comments should be submitted to Mr. 
Michael Hansen, Public Involvement and Information Specialist; 
Bonneville Power Administration; P.O. Box 12999; Portland, Oregon 
97212. The prehearing conference will be held on August 24, 1999, from 
1:00 p.m. to 4:00 p.m., Room 223, 911 N.E. 11th, Portland, Oregon. To 
request documents in this proceeding by telephone, call BPA's document 
request line: (503) 230-4328 or call toll-free 1-800-622-4519. Please 
request the document by its listed title. BPA's initial proposal for 
FPS-96R will also be available on BPA's website at www.bpa.gov/power/
ratecase.
    Responsible Official: Ms. Diane Cherry, Manager for Power Products, 
Pricing and Rates, is the official responsible for the development of 
BPA's wholesale power rates.

SUPPLEMENTARY INFORMATION:

Part I--Introduction and Procedural Background

A. Relevant Statutory Provisions Governing This Rate Proceeding

    Section 7 of the Northwest Power Act, 16 U.S.C. 839e, contains a 
number of general directives that the BPA Administrator must consider 
in establishing rates for the sale of electric energy and capacity. In 
particular, section 7(a)(1), 16 U.S.C. 839e(a)(1), provides in part 
that:

[S]uch rates shall be established and, as appropriate, revised to 
recover, in accordance with sound business principles, the costs 
associated with the acquisition, conservation, and transmission of 
electric power, including the amortization of the Federal investment 
in the Federal Columbia River Power System (including irrigation 
costs required to be repaid out of power revenues) over a reasonable 
period of years and the other costs and expenses incurred by the 
Administrator pursuant to this Act and other provisions of law.

    Rates established by BPA are effective on an interim or final basis 
when approved by FERC. 16 U.S.C. 839e(a)(2). In addition to the 
Northwest Power Act, BPA ratemaking is governed by the Bonneville 
Project Act, 16 U.S.C. Section 832 et seq., the Federal Columbia River 
Transmission System Act, 16 U.S.C. Section 838 et seq., and the Flood 
Control Act of 1944, 16 U.S.C. 825s.
    Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i), 
requires that BPA's rates be set according to certain procedures. These 
procedures include issuance of a Federal Register notice announcing the 
proposed rates; one or more hearings; the opportunity to submit written 
views, supporting information, questions, or arguments; and a decision 
by the Administrator based on the record developed during the hearing 
process. This proceeding will be governed by BPA's ``Procedures 
Governing Bonneville Power Administration Rate Hearings,'' 51 FR 7611 
(March 5, 1986), which implement and, in most instances, expand these 
statutory requirements.
    Pursuant to section 1010.3(c) of the Procedures Governing 
Bonneville Power Administration Rate Hearings (BPA Procedures), this 
hearing will be conducted under Rule 1010.10, which governs Expedited 
Rate Proceedings. The expedited procedures will be used rather than the 
procedures for General Rate Proceedings conducted under Rule 1010.9. 
The procedures for General Rate Proceedings are intended for use when 
the Administrator proposes to revise all, or substantially all, of 
BPA's wholesale power and transmission rates. The proposed correction 
of the FPS-96 schedule does not impact any other part of the FPS-96 
rate schedule, or any other rate schedule, and will be applicable to a 
very limited number of contracts. Therefore, the issues in this rate 
proceeding will be fewer and of more limited scope than the issues in a 
proceeding to adjust all BPA rates. BPA believes that the Expedited 
Rate Proceeding will be adequate to develop a full and complete record 
and to receive public comment and argument related to the proposed 
corrections. If more time is required, the Hearing Officer may request 
under section 1010.10(b) of the BPA Procedures that the BPA 
Administrator grant an extension.

B. Background

    On July 17, 1995, BPA filed a notice in the Federal Register 
proposing new wholesale power and transmission rates to be effective on 
October 1, 1996, including the FPS-96 rate schedule. BPA's initial rate 
proposal was filed on July 10, 1995, and was supported by written 
testimony and studies. Parties to the proceeding filed their rebuttal 
to BPA's direct case and their own direct testimony on September 8, 
1995. On December 8, 1995, litigants filed rebuttal to the parties' 
direct cases. BPA also filed a supplemental rate proposal on December 
8, 1995, which consisted of written testimony and studies.
    Parties filed their direct cases in response to BPA's supplemental 
rate proposal on January 26, 1996. Testimony responding to the parties' 
supplemental cases was filed on February 12, 1996. Rebuttal testimony 
was filed by all litigants on February 14, 1996. Cross-examination 
began on February 20, 1996. Parties submitted initial briefs on April 
22, 1996. Oral argument before the BPA Administrator and Deputy 
Administrator was held on April 30, 1996. A Draft ROD was published and 
distributed to parties on May 4, 1996. Parties filed briefs on 
exceptions on May 30, 1996. BPA published its Final ROD on June 17, 
1996.
    BPA filed its proposed rates, including the FPS-96 schedule, with 
FERC on July 26, 1996. On September 25, 1996, FERC granted interim 
approval of the proposed rates effective October 1, 1996. United States 
Dept. of Energy-Bonneville Power Administration, 76 FERC para. 61,314 
(1996). On July 30, 1996, FERC issued an order granting final 
confirmation and approval of BPA's rates, including the FPS-96 rate 
schedule. United Stated Dept. of Energy-Bonneville Power 
Administration, 80 FERC para. 61,118 (1997). The FPS-96 rate was 
approved for a 10-year period ending September 30, 2006.

C. Proposed Schedule Concerning This Rate Proceeding

    BPA's initial rate proposal in this proceeding will be available 
for examination on August 24, 1999, at BPA's Public Information Center, 
BPA Headquarters Building, 1st Floor; 905 N.E. 11th, Portland, Oregon, 
and will be provided to parties at the prehearing conference to be held 
on August 24, 1999, from 1:00 p.m. to 4:00 p.m., Room 223, 911 N.E. 
11th, Portland, Oregon.
    To request documents in this proceeding by telephone, call BPA's 
document request line: (503) 230-4328

[[Page 44363]]

or call toll-free 1-800-622-4519. Please request the document by its 
listed title. BPA's initial proposal for FPS-96R will also be available 
on BPA's website at www.bpa.gov/power/ratecase.
    As noted above, BPA will release its proposed revisions to the FPS-
96 rate schedule on August 24, 1999. BPA expects to publish a final ROD 
on December 6, 1999. The following proposed schedule is provided for 
informational purposes. A final schedule will be established by the 
Hearing Officer at the prehearing conference:

August 24--Prehearing Conference (BPA files Direct Case) and deadline 
for petitions to intervene.
September 17--Data Requests on BPA's Direct Case Due.
September 24--Data Responses Due.
October 4--Parties' Direct Cases (including rebuttal to BPA's Direct 
Case).
October 12--Data Requests on Parties' Direct Cases Due.
October 13--Close of Public Comment.
October 19--Data Responses Due.
October 26--Litigants' Rebuttal Cases (no discovery).
November 2--Cross-Examination.
November 9--Initial Briefs.
November 17--Draft Record of Decision.
November 27--Briefs on Exceptions.
December 6--Final Record of Decision.

    The procedural schedule established for Docket No. FPS-96R will 
provide an opportunity for interested persons to review BPA's proposed 
rates, to participate in the rate hearing, and to submit oral and 
written comments. During the development of the final rate proposal, 
BPA will evaluate all written and oral comments received in the rate 
proceeding. Consideration of comments and more current data may result 
in the final rate proposal differing from the rates proposed in this 
Notice.
    BPA expects to file its ROD with FERC by January 6, 2000, 
requesting that the proposed revisions go into effect on or before June 
1, 2000.

Part II--Purpose and Scope of Hearing

    The purpose of the proposed changes to the Firm Power Products and 
Services (FPS-96) rate schedule is to clarify and establish the rates 
that apply to the capacity without energy product.
    The FPS-96 rate schedule includes a Contract Rate demand charge 
section, which contains a rate of $0.87/kW/month. The demand charge in 
this section was designed and priced to be used exclusively in 
conjunction with the purchase of the separate energy product included 
in the same section of FPS-96. The Contract Rate demand charge was not 
intended to apply to capacity without energy.
    The FPS-96 rate schedule is a successor to the Surplus Firm Power 
(SP-93) rate schedule. However, prior to the product unbundling in the 
FPS-96 rate schedule, the Contract Rate demand charge in BPA's Surplus 
Firm Power rate schedules (SP-93, SP-91, SP-89 and SP-86) was priced to 
provide capacity without energy. The Contract Rate demand charge in 
each of these Surplus Firm Power rate schedules included: (1) firm 
energy; (2) firm capacity without energy; and (3) firm power. In 
addition, the demand charge in the Contract Rate in those schedules was 
priced to reflect the value of capacity, with or without energy.
    Pursuant to BPA's product unbundling in the 1996 rate case, 
separate sections for the capacity without energy product were included 
in the Priority Firm Power (PF-96) and New Resource Power (NR-96) rate 
schedules. Consistent with this product unbundling, the FPS-96 rate 
schedule was also designed to unbundle capacity and energy products. 
Although clarifying language was mistakenly omitted from the FPS-96 
rate schedule, it was BPA's stated intent that the capacity without 
energy product would be sold at a negotiated price, not under the 
Contract Rate demand charge. This is established by BPA's Final 1996 
Wholesale Power Rate Development Study (WPRDS), WP-96-FS-BPA-01. 
Section 4.7 of the WPRDS states in pertinent part that:

Firm capacity without energy is available under PF-96 and NR-96 rate 
schedules for Computed Requirements customers purchasing under the 
1981 Contract. Firm capacity without energy is also available under 
the FPS-96 rate schedule, at negotiated prices and terms that may 
vary from those in the PF and NR rate schedules.

    BPA entered into some contracts prior to the establishment of the 
FPS-96 rate schedule that provide for BPA to supply, under specified 
circumstances, capacity without energy, and further provide that such 
product should be priced under the Contract Rate demand charge section 
of the then applicable Surplus Firm Power rate schedule. As noted 
previously, the FPS-96 rate schedule is the successor to all prior 
Surplus Firm Power rate schedules. BPA erred in the FPS-96 rate 
schedule when it failed to expressly state in that schedule that 
contracts providing for capacity without energy would no longer be sold 
at the Contract Rate demand charge, but rather would be priced at a 
negotiated rate, and that the demand charge in the Contract Rate 
section in FPS-96 was for a firm power sale product. The fact that an 
error was made is reflected in the above quoted language from the 
WPRDS, and in the fact that the $0.87/kW/month price does not, and did 
not at the time the rate schedule was developed, recover the costs to 
BPA associated with providing energy during high cost periods and 
taking energy back during lower cost periods.
    Because some contracts may require a posted, as opposed to a 
negotiated, rate for capacity without energy, BPA is proposing to post 
seasonally adjusted rates that may be used in instead of a negotiated 
rate. The posted rates shall be available only for those contracts in 
effect on or before October 1, 1996, that provide for capacity without 
energy to be priced at the Contract Rate demand charge in the then 
applicable Surplus Firm Power rate schedule.
    BPA has assessed the potential environmental effects of its rate 
proposal, as required by the National Environmental Policy Act (NEPA), 
as part of BPA's Business Plan Environmental Impact Statement (EIS). 
The analysis includes an evaluation of the environmental impacts of a 
range of rate design alternatives for BPA's power services and an 
analysis of the environmental impacts of the rate levels resulting from 
the rates for such services under the business structure alternatives. 
BPA's proposal to revise the FPS-96 schedule falls within the range of 
alternatives evaluated in the Final Business Plan EIS. Comments on the 
Business Plan EIS were received outside the formal rate hearing 
process, but will be included in the rate case record and considered by 
the Administrator in making a final decision establishing BPA's 
revisions to the 1996 rate schedules. The Business Plan EIS was 
completed in June 1995.
    Pursuant to Rule 1010.3(f) of BPA's Procedures, the Administrator 
limits the scope of this hearing to issues respecting the correction of 
the FPS-96 rate schedule as described in section II hereof. Other 
provisions of the existing FPS-96 rate schedule are not rate matters 
for the purposes of this hearing.

III. Public Participation

A. Distinguishing Between ``Participants'' and ``Parties'

    BPA distinguishes between ``participants in'' and ``parties to'' 
the hearings. Apart from the formal hearing process, BPA will receive 
comments, views, opinions, and information from ``participants,'' who 
are defined in the BPA Procedures as persons who may submit comments 
without being subject to the duties of, or having the privileges

[[Page 44364]]

of, parties. Participants' written and oral comments will be made part 
of the official record and considered by the Administrator. 
Participants are not entitled to participate in the prehearing 
conference; may not cross-examine parties' witnesses, seek discovery, 
or serve or be served with documents; and are not subject to the same 
procedural requirements as parties.
    Written comments by participants will be included in the record if 
they are submitted on or before October 13, 1999. Participants' written 
views, supporting information, questions, and arguments should be 
submitted to the address noted above. The second category of interest 
is that of a ``party'' as defined in Rules 1010.2 and 1010.4 of the BPA 
Procedures. 51 FR 7611 (1986). Parties may participate in any aspect of 
the hearing process.

B. Petitions for Intervention

    Persons wishing to become a party to BPA's rate proceeding must 
notify BPA in writing. Petitioners may designate no more than two 
representatives upon whom service of documents will be made. Petitions 
to intervene shall state the name and address of the person requesting 
party status and the person's interest in the hearing.
    Petitions to intervene as parties in the rate proceeding are due to 
the Hearing Officer by August 24, 1999. The petitions should be 
directed to: Christopher Jones, Hearing Clerk--LP, Bonneville Power 
Administration, 905 N.E. 11th Ave., P.O. Box 12999, Portland, Oregon 
97212.
    Petitioners must explain their interests in sufficient detail to 
permit the Hearing Officer to determine whether they have a relevant 
interest in the hearing. Pursuant to Rule 1010.1(d) of BPA's 
Procedures, BPA waives the requirement in Rule 1010.4(d) that an 
opposition to an intervention petition be filed and served 24 hours 
before the prehearing conference. Any opposition to an intervention 
petition may instead be made at the prehearing conference. Any party, 
including BPA, may oppose a petition for intervention. Persons who have 
been denied party status in any past BPA rate proceeding shall continue 
to be denied party status unless they establish a significant change of 
circumstances. All timely applications will be ruled on by the Hearing 
Officer. Late interventions are strongly disfavored. Opposition to an 
untimely petition to intervene shall be filed and received by BPA 
within two days after service of the petition.

C. Developing the Record

    Cross-examination will be scheduled by the Hearing Officer as 
necessary following completion of the filing of all litigants' direct 
and rebuttal testimony. Parties will have the opportunity to file 
initial briefs at the close of any cross-examination. After the close 
of the hearings, and following submission of initial briefs, BPA will 
issue a Draft ROD that states the Administrator's tentative 
decision(s). Parties may file briefs on exceptions, or when all parties 
have previously agreed, oral argument may be substituted for briefs on 
exceptions. When oral argument has been scheduled in lieu of briefs on 
exceptions, the argument will be transcribed and made part of the 
record. The record will include, among other things, the transcripts of 
any hearings, written material submitted by the participants, and 
evidence accepted into the record by the Hearing Officer. The Hearing 
Officer then will review the record, supplement it if necessary, and 
certify the record to the Administrator for decision.
    The Administrator will develop the final corrections to the FPS-96 
rate schedule based on the entire record. The basis for the final 
corrections to the rate schedule will be expressed in the 
Administrator's Final ROD. The Administrator will serve copies of the 
ROD on all parties and will file the final proposed rate corrections, 
together with the record, with FERC for confirmation and approval. See 
18 CFR Part 300.

IV. Summary of the Proposal

    Below are the proposed corrections intended to the FPS-96 rate 
schedule.
    1. Title to Section II. A. is corrected from ``Firm Power'' to 
``Firm Power and Capacity Without Energy Sales'
    2. The following language will be added to 1.1 Contract Rate 
section of FPS-96:
    The demand charge in the Contract Rate applies firm power sales. 
Firm capacity without energy is available under the FPS-96 rate 
schedule at the prices identified in section 1.3 unless otherwise 
agreed to by BPA and the Purchaser.
    3. New FPS-96 Section 1.3:
1.3  Capacity Without Energy
    Unless otherwise agreed to by the parties, the monthly charge for 
capacity without energy shall be the applicable rate for that month, 
multiplied by the Purchaser's Contract Demand associated with the 
purchase of capacity without energy.

------------------------------------------------------------------------
            Applicable months                          Rate
------------------------------------------------------------------------
September-December......................  $15.16/kW-mo.
January-March...........................  11.11/kW-mo.
April...................................  10.10/kW-mo.
May-June................................  $8.30/kW-mo.
July....................................  13.39/kW-mo.
August..................................  19.93/kW-mo.
------------------------------------------------------------------------

    The rates in the Contract Rate Section II.A.1.1 of FPS-96 apply 
only to a firm power sale.

V. The Revised FPS-96 Rate Schedule

    The revised FPS rate schedule is set forth below. An interlined 
version of the revised rate schedule will be available for examination 
on August 24, 1999, at BPA's Public Information Center, BPA 
Headquarters Building, 1st Floor; 905 N.E. 11th, Portland, Oregon, and 
will be provided to parties at the prehearing conference to be held on 
August 24, 1999, from 1:00 p.m. to 4:00 p.m., Room 223, 911 N.E. 11th, 
Portland, Oregon. In addition, the interlined version of this revised 
rate schedule will be posted on BPA's website that same day. The 
website may be reached via www.bpa.gov/power/ratecase.

Schedule FPS-96

Firm Power Products and Services

Section I. Availability

    This rate schedule is available for the purchase of Firm Power, 
Capacity Without Energy, Supplemental Control Area Services, Shaping 
Services, and Reservation and Rights to Change Services for use inside 
and outside the Pacific Northwest during the period beginning October 
1, 1996, and ending September 30, 2006.
    Products and services available under this rate schedule are 
described in the reprint of the 1996 GRSPs for FPS-96, Section III.A of 
Bonneville Power Administration (BPA's) General Rate Schedule 
Provisions (GRSPs). BPA is not obligated to enter into agreements to 
sell products and services under this rate schedule or make power or 
energy available under this rate schedule if such power or energy would 
displace sales under the PF-96, NR-96, IP-96, or VI-96 rates schedules 
or their successors. Sales under the FPS-96 rate schedule are subject 
to BPA's GRSPs. Transmission service over Federal Columbia River 
Transmission System facilities shall be charged under the applicable 
transmission rate schedule. Ancillary services shall be available 
under, or at charges consistent with, the Ancillary Products and 
Services (APS) rate schedule.
    This rate schedule supersedes the Surplus Firm Power (SP-93) and

[[Page 44365]]

Emergency Capacity (CE-95) rate schedules. Rates under contracts that 
contain charges that escalate based on rates listed in this rate 
schedule shall include applicable transmission charges. For sales under 
this rate schedule, bills shall be rendered and payments due pursuant 
to BPA's Billing Procedures and/or as agreed to in purchase agreements.

Section II. Rates, Billing Factors, and Adjustments

    For each product, the rate(s) for each product along with the 
associated billing factor(s) are identified below. Applicable 
adjustments, charges, and special rate provisions are listed for each 
product. This rate schedule contains four subsections, corresponding to 
the products offered under this rate schedule:

Section II.A. Firm Power and Capacity Without Energy
Section II.B. Supplemental Control Area Services
Section II.C. Shaping Services
Section II.D. Reservation and Rights to Change Services

A. Firm Power and Capacity Without Energy

1. Rates and Billing Factors
1.1  Contract Rate
    The demand charge in the Contract Rate applies to purchases of a 
firm capacity with no energy return product exclusively, that is, a 
firm power sale product. Firm capacity with energy return (Capacity 
without Energy) is available under the FPS-96 rate schedule at the 
prices identified in section 1.3. Contracts entered into on or before 
September 30, 1996, that refer to the demand charge in the Contract 
Rate section of the then applicable surplus power schedule for pricing 
this product will be priced under section 1.3.
1.1.1  Demand Charge
    The charge for demand shall be $0.87 per kilowatt per month in all 
months of the year, multiplied by the Contract Demand unless otherwise 
agreed by BPA and the Purchaser.
1.1.2  Demand Charge--Capacity Without Energy Sales
    See section 1.3 for pricing.
1.1.3  Energy Charge
    The total monthly charge for energy shall be the sum of (1) and 
(2):
    (1) The applicable Heavy Load Hour (HLH) rate for that month, 
multiplied by the Purchaser's HLH Contract Energy unless otherwise 
agreed by BPA and the Purchaser; and
    (2) The applicable Light Load Hour (LLH) rate for that month, 
multiplied by the Purchaser's LLH Contract Energy unless otherwise 
agreed by BPA and the Purchaser.

------------------------------------------------------------------------
                                                     HLH rate   LLH rate
                 Applicable months                   (mills/    (mills/
                                                       kWh)       kWh)
------------------------------------------------------------------------
September-December................................      49.63      46.45
January-March.....................................      50.39      47.25
April.............................................      44.74      42.73
May-June..........................................      24.36      21.21
July..............................................      29.94      26.09
August............................................      42.68      37.06
------------------------------------------------------------------------

1.2  Flexible Rate
    Demand and/or energy charges may be specified at a higher or lower 
average rate as mutually agreed by BPA and the Purchaser. Billing 
factors shall be Contract Demand and Contract Energy unless otherwise 
agreed by BPA and the Purchaser.
1.3  Capacity Without Energy
1.3.1  Flexible Rate
    For sales not covered by section 1.3.2 the rate(s) for capacity 
without energy sales shall be as mutually agreed by BPA and the 
Purchaser.
1.3.2  Posted Rate
    The posted rates are available exclusively for contracts entered 
into on or before September 30, 1996, that include Capacity without 
Energy provisions where payment shall be at the demand charge 
associated with the Contract Rate of the then applicable surplus power 
rate schedule. For sales pursuant to such contracts the monthly charge 
for Capacity without Energy shall be the applicable rate for that 
month, multiplied by the Purchaser's Contract Demand associated with 
the purchase of Capacity without Energy.

------------------------------------------------------------------------
            Applicable months                          Rate
------------------------------------------------------------------------
September-December......................  $15.16/kW-mo.
January-March...........................  $11.11/kW-mo.
April...................................  $10.10/kW-mo.
May-June................................  $8.30/kW-mo.
July....................................  $13.39/kW-mo.
August..................................  $19.93/kW-mo.
------------------------------------------------------------------------

2. Adjustments, Charges, and Special Rate Provisions
    Adjustments, Charges, and Special Rate Provisions are described in 
the GRSPs. Relevant sections are identified below.
2.1  Rate Adjustments

------------------------------------------------------------------------
               Rate adjustment                          Section
------------------------------------------------------------------------
Energy Return Surcharge.....................  II.H.
Reactive Power Charge.......................  II.O.
Unauthorized Increase Charge................  II.R.
------------------------------------------------------------------------

2.2  Special Rate Provisions

------------------------------------------------------------------------
           Special rate provisions                      Section
------------------------------------------------------------------------
Cost Contributions..........................  II.D.
------------------------------------------------------------------------

B. Supplemental Control Area Services

1. Rates and Billing Factors
    The charge for Supplemental Control Area Services shall be the 
applicable rate(s) times the applicable billing factor(s), pursuant to 
the agreement between BPA and the Purchaser.
    The rate(s) and billing factor(s) for Supplemental Control Area 
Services shall be as established by BPA or as mutually agreed by BPA 
and the Purchaser.
2. Adjustments, Charges, and Special Rate Provisions
    Adjustments, Charges, and Special Rate Provisions are described in 
the GRSPs. Relevant sections are identified below.
2.1  Rate Adjustments

------------------------------------------------------------------------
               Rate adjustment                          Section
------------------------------------------------------------------------
Energy Return Surcharge.....................  II.H.
Reactive Power Charge.......................  II.O.
Unauthorized Increase Charge................  II.R.
------------------------------------------------------------------------

2.2  Special Rate Provisions

------------------------------------------------------------------------
           Special rate provisions                      Section
------------------------------------------------------------------------
Cost Contributions..........................  II.D.
------------------------------------------------------------------------

C. Shaping Services

1. Rates and Billing Factors
    The charge for Shaping Services shall be the applicable rate(s) 
times the applicable billing factor(s), pursuant to the agreement 
between BPA and the Purchaser.
    The rate(s) and billing factor(s) for use of Shaping Services shall 
be as established by BPA or as mutually agreed by BPA and the 
Purchaser.
2. Adjustments, Charges, and Special Rate Provisions
    Adjustments, Charges, and Special Rate Provisions are described in 
the GRSPs. Relevant sections are identified below.
2.1  Rate Adjustments

------------------------------------------------------------------------
               Rate adjustment                          Section
------------------------------------------------------------------------
Energy Return Surcharge.....................  II.H.
Reactive Power Charge.......................  II.O.

[[Page 44366]]

 
Unauthorized Increase Charge................  II.R.
------------------------------------------------------------------------

2.2  Special Rate Provisions

------------------------------------------------------------------------
           Special rate provisions                      Section
------------------------------------------------------------------------
Cost Contributions..........................  II.D.
------------------------------------------------------------------------

D. Reservation and Rights to Change Services

1. Rates and Billing Factors
    The charge for Reservation and Rights to Change Services shall be 
the applicable rate(s) times the applicable billing factor(s), pursuant 
to the agreement between BPA and the Purchaser.
    The rate(s) and billing factor(s) for Reservation and Rights to 
Change Services shall be as established by BPA or mutually agreed by 
BPA and the Purchaser.
2. Adjustments, Charges, and Special Rate Provisions
    There are no additional adjustments, charges, or special rate 
provisions for the Reservation and Rights to Change Services.

    Issued in Portland, Oregon, on July 30, 1999.
Jack Robertson,
Deputy Administrator.
[FR Doc. 99-20804 Filed 8-12-99; 8:45 am]
BILLING CODE 6450-01-P