[Federal Register Volume 66, Number 151 (Monday, August 6, 2001)]
[Notices]
[Pages 41012-41023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19574]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Notice of Interim Approval

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of rate order.

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SUMMARY: The Deputy Secretary of Energy, confirmed and approved, on an 
interim basis, Rate Schedules VA-1, VA-2, VA-3, VA-4, CP&L-1, CP&L-2, 
CP&L-3, CP&L-4, AP-1, AP-2, AP-3, AP-4, and NC-1. The rates were 
approved on an interim basis through September 30, 2006, and are 
subject to confirmation and approval by the Federal Energy Regulatory 
Commission on a final basis.

DATES: Approval of rates on an interim basis is effective October 1, 
2001.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance & Marketing, Southeastern Power Administration, 
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-
4578, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by 
Order issued February 13, 1997, in Docket No. EF96-3041-000, confirmed 
and approved Wholesale Power Rate Schedules KP-1-D, JHK-2-B, JHK-3-B, 
and PH-1-B through September 30, 2001. This order replaces these rate 
schedules.

    Dated: July 27, 2001.
Francis S. Blake,
Deputy Secretary.

Department of Energy Deputy Secretary

    In the Matter of: Southeastern Power Administration--Kerr-
Philpott System Power Rates; Rate Order No. SEPA-40.

Order Confirming and Approving Power Rates on an Interim Basis

    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 Fed. Reg. 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 and approve on a final basis 
or to disapprove rates developed by the Administrator under the 
delegation. This rate is issued by the Secretary pursuant to said 
notice.

Background

    Power from the Kerr-Philpott Projects is presently sold under 
Wholesale Power Rate Schedules KP-1-D, JHK-2-B, JHK-3-B, and PH-1-B. 
These rate schedules were approved by the FERC on February 13, 1997, 
for a period ending September 30, 2001 (78 FERC 62112).

Public Notice and Comment

    Southeastern prepared a Power Repayment Study, dated February 2001 
for the Kerr-Philpott System, which showed that revenues at current 
rates were not adequate to meet repayment criteria. On March 15, 2001, 
(66 FR 15116) Southeastern proposed to replace the current Rate 
Schedules with new rate schedules VA-1, VA-2, VA-3, VA-4, CP&L-1, CP&L-
2, CP&L-3, CP&L-4, AP-1, AP-2, AP-3, AP-4, and NC-1. The Notice also 
announced a Public Information and Comment Forum to be held April 17, 
2001, in Raleigh, North Carolina, with a deadline for written comments 
on June 13, 2001. Southeastern received eight comments from one party, 
the Southeastern Federal Power Customers, Inc. (SeFPC). The following 
is a discussion of these comments.
    Comment 1: SeFPC states that, until SEPA takes steps to address 
cost of service under the settlement agreement in Virginia Electric and 
Power Company (Virginia Power), Docket No. ER99-417-000, SEPA has not 
fulfilled the statutory obligation to ensure that the charges to the 
customers are the ``lowest possible'' and ``consistent with sound 
business principles.''
    Response 1: The cost of service filing under the settlement 
agreement reached by Southeastern, SeFPC and other Kerr-Philpott 
customers in Docket No. ER99-417-000 stipulated that it be filed on the 
``earliest of (1) January 1, 2001, (2) the effective date of a change 
of any rates of the rates for transmission service or ancillary 
services under Virginia Power's Open Access Transmission Tariff (OATT) 
or, (3) The effective date of Virginia Power's participation in a 
Regional Transmission Organization (RTO) OATT tariff.'' Page 2 of 
settlement agreement dated in July 15, 1999, in Docket No. ER99-417-
000. The following year, Southeastern, SeFPC and other Kerr-Philpott 
customers agreed to amend the settlement agreement and extend the term 
from January 1, 2001, to January 1, 2002. See Virginia Electric and 
Power Company, Docket No. ER00-3785. Both were approved by the Federal 
Energy Regulatory Commission (FERC). These agreements have resulted in 
savings of approximately $2.8 million to all the Kerr-Philpott 
customers. Southeastern will not pass any increased costs until that 
cost of service study is filed. Southeastern has developed a rate 
schedule that allows Southeastern to pass on to the preference 
customers any costs that are allowed by FERC at the time they are 
allowed by FERC.
    Comment 2: In resolving that case (Virginia Power Docket ER99-417-
000), SEPA only raised the question of whether the Kerr-Henderson line 
is integrated with the entire Virginia Power system and whether the 
average-system pricing of the service is just and reasonable under 
these circumstances. 85 FERC at 62,668. Ultimately, until additional 
steps are taken, the rates will not meet the standard for the lowest 
possible consistent with sound business principles.
    Response 2: Southeastern raised other issues in Virginia Power 
Docket ER99-417-000 than just whether Virginia Power should be allowed 
to charge Southeastern a point-to-point transmission rate under 
Virginia Power's OATT. Some of Southeastern's arguments are summarized 
and rejected in the dissenting opinion of Chairman Hoecher and 
Commissioner Hebert at 85 FERC 62669-62670. Others appear in 
Southeastern's Motion to Intervene and accompanying affidavit filed in 
the docket. The settlement agreements that Southeastern, SeFPC and the 
other customers signed allows for paying the point-to-point rate after 
Virginia Power files a cost of service study. When FERC approves such a 
rate that Southeastern must pay Virginia Power, Southeastern will pass 
that rate on to the preference customers.
    Comment 3: The Alliance RTO will make a cost of service filing late 
this year. The Customers believe that SEPA has an obligation to examine 
and challenge in all appropriate forums the underlying cost of service 
filing.

[[Page 41013]]

    Response 3: Southeastern has always sought the lowest possible 
costs in dealing with transmission providers as is demonstrated here. 
It will continue to make every effort to examine, evaluate, and, if 
necessary, challenge the relevant cost of service filings in 
appropriate forums.
    Comment 4: SeFPC members believe that opportunity exists for SEPA 
to participate in Alliance and GridSouth meetings, as appropriate, to 
encourage appropriate reciprocity of transmission service. Until SEPA 
documents how it has participated in these meetings to encourage 
reciprocal rates for transmission service, thereby ensuring the lowest 
possible rates, the proposed rate increase for transmission service 
does not appear to provide the lowest possible cost.
    Response 4: Southeastern is an intervenor in the GridSouth and 
Alliance filings and has attended many meetings on the creation of 
GridSouth and has discussed ``seams'' issues with GridSouth. It 
believes that the ``seams'' issues will be filed with FERC giving the 
preference customers as well as Southeastern the opportunity to 
intervene and have an input.
    Comment 5: The members of the SeFPC understand that the development 
of reciprocal service between the GridSouth and Alliance RTO could 
eliminate a substantial portion of the tandem transmission charge as 
set forth in the proposed rate increase. Notably, the Alliance RTO will 
be holding meetings in the near future that will address this topic. 
Until SEPA documents how it has participated in these meetings to 
encourage reciprocal rates for transmission service, thereby ensuring 
the lowest possible rates, the proposed rate increase for transmission 
service does not appear to provide the lowest possible cost.
    Response 5: Southeastern will continue to be directly involved in 
discussions on this matter and others with GridSouth and the Alliance 
and will continue to discuss our positions on RTO issues with the 
preference customers.
    Comment 6: The recovery of CSRS benefits appears to be an expense 
for which the Customers pay twice, once as electric customers of the 
U.S. Government, and a second time as U.S. Taxpayers. While FERC has 
declined to disagree with the Department of Energy's previous decision 
to recover these costs in previous cases, the members of the SeFPC ask 
that policy makers in the current Administration examine the merits of 
this policy which double collects from electric consumers in the 
Southeast.
    Response 6: The Department of Energy has determined that 
Southeastern will recover the cost of CSRS and pension health benefits 
funded by the Office of Personnel Management. The Customers have 
challenged this determination to the Department of Energy and to FERC 
in the Georgia-Alabama-South Carolina rate filing in 1998 and the 
Cumberland Basin System filing in 1999.
    In the Georgia-Alabama-South Carolina System, FERC issued an order 
confirming and approving new rate schedules on a final basis on 
February 26, 1999, (86 FERC 61,195). On April 23, 1999, in docket no. 
EF98-3011-001, FERC issued an order granting rehearing of the order. 
This rehearing is pending.
    In the Cumberland Basin System, FERC issued an order confirming and 
approving new rate schedules on a final basis on March 17, 2000, (90 
FERC 61,266). On May 12, 2000, in docket no. EF99-3021-001, FERC issued 
an order granting rehearing of the order. On June 15, 2000, FERC issued 
an order denying rehearing on this docket (91 FERC 61,272).
    CSRS benefits were included in the Jim Woodruff System new rate 
schedules submitted to the FERC in 2000. While the customers opposed 
the inclusion of these costs in their comments to Southeastern, they 
chose not to oppose them before FERC. FERC issued an order confirming 
and approving rate schedules for the Jim Woodruff System on November 9, 
2000, (93 FERC 62,100).
    Comment 7: The members of the SeFPC believe that SEPA must 
establish how the costs for the CSRS benefits are derived. In 
particular, the customers note that SEPA has recovered costs for CSRS 
benefits from customers served by the GA-AL-SC System of Projects and 
Cumberland System of Projects without any sufficient documentation as 
to how the costs for CSRS benefits are proportioned among all the 
customers relative to SEPA's actual costs for CSRS benefits. In this 
regard, the Customers believe that SEPA must demonstrate that the costs 
for CSRS benefits are proportional for the Kerr-Philpott System of 
Projects so that the customers served by these projects do not bear a 
disproportionate share of the cost for CSRS benefits.
    Response 7: In computing CSRS costs, the Department of Energy 
follows the guidelines provided annually by the Office of Personnel 
Management (OPM). A copy of the most recent guidelines is attached. OPM 
follows the requirements of the Statement of Federal Financial 
Standards No. 5 (SFFAS-5)--Liabilities of the Federal Government.
    The service cost included in Southeastern's financial statements 
represents an estimate of the amount of funds which, if accumulated 
annually and invested over the careers of covered employees, will be 
enough to pay their future benefits. For most ``regular'' CSRS covered 
employees, the service cost is 24.2 percent of basic pay. This exceeds 
the 14 percent of basic pay that is contributed by and for covered 
employees. Employing agencies must recognize the difference between the 
service cost and the contributions by and for their employees as an 
imputed financing source.
    Southeastern's CSRS costs are then allocated to each of 
Southeastern's four systems using the same allocation factors as all 
other Southeastern marketing expenses.
    The Corps of Engineers computes CSRS costs using the same 
guidelines. These costs are computed for each project and reported to 
Southeastern.
    Comment 8: The projected increase in the repayment study of 
$205,000 appears to be consistent with the revenue requirements for the 
rehabilitation [of the John H. Kerr Project].
    Response 8: The comment refers to the portion of the rate increase 
that is attributed to the rehabilitation of the John H. Kerr Project 
currently underway. The customers do not appear to be opposed to this 
portion of the rate adjustment.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in May 2001, for the Kerr-Philpott System shows that 
with the proposed rates, all system power costs are paid within the 50-
year repayment period required by existing law and DOE Procedure RA 
6120.2. The Administrator of Southeastern has certified that the rates 
are consistent with applicable law and that they are the lowest 
possible rates to customers consistent with sound business principles.

Environmental Impact

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

[[Page 41014]]

Availability of Information

    Information regarding these rates, including studies and other 
supporting materials, is available for public review in the offices of 
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, 
Georgia 30635, and in the Power Marketing Liaison Office, James 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585.

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 October 1, 2001, attached Wholesale Power Rate 
Schedules VA-1, VA-2, VA-3, VA-4, CP&L-1, CP&L-2, CP&L-3, CP&L-4, AP-1, 
AP-2, AP-3, AP-4, and NC-1. The Rate Schedules shall remain in effect 
on an interim basis through September 30, 2006, unless such period is 
extended or until the FERC confirms and approves them or substitutes 
Rate Schedules on a final basis.

    Dated: July 27, 2001.

Francis S. Blake,
Deputy Secretary.

Wholesale Power Rate Schedule VA-1

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted and 
scheduled pursuant to contracts between the Government and Virginia 
Electric and Power Company (hereinafter called the Company) and the 
Customer. This rate schedule is applicable to customers receiving power 
from the Government on an arrangement where the Company schedules the 
power and provides the Customer a credit on their bill for Government 
power. Nothing in this rate schedule shall preclude modifications to 
the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $1.36 Per kilowatt of total contract demand per month as of 
February, 2001, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The transmission charges are governed by and subject to 
refund based upon the determination in proceedings before the Federal 
Energy Regulatory Commission (FERC) involving Virginia Electric and 
Power Company's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving Virginia Electric 
and Power Company's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by Virginia 
Electric and Power Company under Section 205 of the Federal Power Act 
or Southeastern Power Administration under Section 206 of the Federal 
Power Act or otherwise.

Billing Month

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

Wholesale Power Rate Schedule VA-2

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted pursuant 
to contracts between the Government and Virginia Electric and Power 
Company (hereinafter called the Company) and the Customer. The Customer 
has chosen to self-schedule and does not receive Government power under 
an arrangement where the Company schedules the power and provides a 
credit on the Customer's bill for Government power. The Customer is 
responsible for providing a scheduling

[[Page 41015]]

arrangement with the Government. The Government is responsible for 
arranging transmission with the Company. Nothing in this rate schedule 
shall preclude modifications to the aforementioned contracts to allow 
an eligible customer to elect service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $1.36 Per kilowatt of total contract demand per month as of 
February, 2001, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The transmission charges are governed by and subject to 
refund based upon the determination in proceedings before the Federal 
Energy Regulatory Commission (FERC) involving Virginia Electric and 
Power Company's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving Virginia Electric 
and Power Company's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by Virginia 
Electric and Power Company under Section 205 of the Federal Power Act 
or Southeastern Power Administration under Section 206 of the Federal 
Power Act or otherwise.

Billing Month

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

Wholesale Power Rate Schedule VA-3

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be scheduled pursuant to 
contracts between the Government and Virginia Electric and Power 
Company (hereinafter called the Company) and the Customer. The Customer 
has chosen to self-schedule and does not receive Government power under 
an arrangement where the Company schedules the power and provides a 
credit on the Customer's bill for Government power. The Government is 
responsible for providing the scheduling. The Customer is responsible 
for providing a transmission arrangement. Nothing in this rate schedule 
shall preclude modifications to the aforementioned contracts to allow 
an eligible customer to elect service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter referred to collectively as the 
Projects) and sold under appropriate contracts between the Government 
and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

[[Page 41016]]

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving Virginia Electric 
and Power Company's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses).

Billing Month

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

Wholesale Power Rate Schedule VA-4

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina served through the transmission facilities 
of Virginia Electric and Power Company (hereinafter called the 
Company). The Customer has chosen to self-schedule and does not receive 
Government power under an arrangement where the Company schedules the 
power and provides a credit on the Customer's bill for Government 
power. The Customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement. Nothing in this rate schedule shall preclude modifications 
to the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter referred to collectively as the 
Projects) and sold under appropriate contracts between the Government 
and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving Virginia Electric 
and Power Company's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses).

Billing Month

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

Wholesale Power Rate Schedule CP&L-1

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be transmitted and 
scheduled pursuant to contracts between the Government and Carolina 
Power & Light Company (hereinafter called the Company) and the 
Customer. This rate schedule is applicable to customers receiving power 
from the Government on an arrangement where the Company schedules the 
power and provides the Customer a credit on their bill for Government 
power. Nothing in this rate schedule shall preclude modifications to 
the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

[[Page 41017]]

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $1.044 Per kilowatt of total contract demand per month as of 
February, 2001, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The rate is subject to periodic adjustment and will be 
computed in accordance with the terms of the Government-Company 
contract.
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the terms of the Government-Company contract.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.

Billing Month

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

Wholesale Power Rate Schedule CP&L-2

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be transmitted 
pursuant to contracts between the Government and Carolina Power & Light 
Company (hereinafter called the Company) and the Customer. The Customer 
has chosen to self-schedule and does not receive Government power under 
an arrangement where the Company schedules the power and provides a 
credit on the Customer's bill for Government power. The Customer is 
responsible for providing a scheduling arrangement with the Government. 
The Government is responsible for arranging transmission with the 
Company. Nothing in this rate schedule shall preclude modifications to 
the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $1.044 Per kilowatt of total contract demand per month as of 
February, 2001, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The rate is subject to periodic adjustment and will be 
computed in accordance with the terms of the Government-Company 
contract.
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power

[[Page 41018]]

Company System and the cost to the Government for transmission of power 
from the John H. Kerr Project to the border of the Carolina Power & 
Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the terms of the Government-Company contract.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.

Billing Month

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

Wholesale Power Rate Schedule CP&L-3

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be scheduled 
pursuant to contracts between the Government and Carolina Power & Light 
Company (hereinafter called the Company) and the Customer. The Customer 
has chosen to self-schedule and does not receive Government power under 
an arrangement where the Company schedules the power and provides a 
credit on the Customer's bill for Government power. The Government is 
responsible for providing the scheduling. The Customer is responsible 
for providing a transmission arrangement. Nothing in this rate schedule 
shall preclude modifications to the aforementioned contracts to allow 
an eligible customer to elect service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the terms of the Government-Company contract.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule CP&L-4

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina served through the transmission 
facilities of Carolina Power & Light Company (hereinafter called the 
Company). The Customer has chosen to self-schedule and does not receive 
Government power under an arrangement where the Company schedules the 
power and provides a credit on the Customer's bill for Government 
power. The Customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement. Nothing in this rate schedule shall preclude modifications 
to the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

[[Page 41019]]

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the terms of the Government-Company contract.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.

Billing Month

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

Wholesale Power Rate Schedule AP-1

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted and 
scheduled pursuant to contracts between the Government and American 
Electric Power Service Corporation (hereinafter called the Company) and 
the Customer. This rate schedule is applicable to customers receiving 
power from the Government on an arrangement where the Company schedules 
the power and provides the Customer a credit on their bill for 
Government power. Nothing in this rate schedule shall preclude 
modifications to the aforementioned contracts to allow an eligible 
customer to elect service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $1.66 Per kilowatt of total contract demand per month as of 
February, 2001, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The transmission charges are governed by and subject to 
refund based upon the determination in proceedings before the Federal 
Energy Regulatory Commission (FERC) involving American Electric Power 
Service Corporation's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

[[Page 41020]]

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving American Electric 
Power Service Corporation's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by American 
Electric Power Service Corporation under Section 205 of the Federal 
Power Act or Southeastern Power Administration under Section 206 of the 
Federal Power Act or otherwise.

Billing Month

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

Wholesale Power Rate Schedule AP-2

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia to whom power may be transmitted pursuant to contracts between 
the Government and American Electric Power Service Corporation 
(hereinafter called the Company) and the Customer. The Customer has 
chosen to self-schedule and does not receive Government power under an 
arrangement where the Company schedules the power and provides a credit 
on the Customer's bill for Government power. The Customer is 
responsible for providing a scheduling arrangement with the Government. 
The Government is responsible for arranging transmission with the 
Company. Nothing in this rate schedule shall preclude modifications to 
the aforementioned contracts to allow an eligible customer to elect 
service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Transmission

    $1.66 Per kilowatt of total contract demand per month as of 
February, 2001, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The transmission charges are governed by and subject to 
refund based upon the determination in proceedings before the Federal 
Energy Regulatory Commission (FERC) involving American Electric Power 
Service Corporation's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving American Electric 
Power Service Corporation's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by American 
Electric Power Service Corporation under section 205 of the Federal 
Power Act or Southeastern Power Administration under section 206 of the 
Federal Power Act or otherwise.

Billing Month

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

[[Page 41021]]

Wholesale Power Rate Schedule AP-3

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia to whom power may be scheduled pursuant to contracts between 
the Government and American Electric Power Service Corporation 
(hereinafter called the Company) and the Customer. The Customer has 
chosen to self-schedule and does not receive Government power under an 
arrangement where the Company schedules the power and provides a credit 
on the Customer's bill for Government power. The Government is 
responsible for providing the scheduling. The Customer is responsible 
for providing a transmission arrangement. Nothing in this rate schedule 
shall preclude modifications to the aforementioned contracts to allow 
an eligible customer to elect service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving American Electric 
Power Service Corporation's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by American 
Electric Power Service Corporation under Section 205 of the Federal 
Power Act or Southeastern Power Administration under Section 206 of the 
Federal Power Act or otherwise.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule AP-4

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia to whom power may be scheduled pursuant to contracts between 
the Government and American Electric Power Service Corporation 
(hereinafter called the Company). The Customer has chosen to self-
schedule and does not receive Government power under an arrangement 
where the Company schedules the power and provides a credit on the 
Customer's bill for Government power. The Customer is responsible for 
providing a scheduling arrangement with the Government and for 
providing a transmission arrangement. Nothing in this rate schedule 
shall preclude modifications to the aforementioned contracts to allow 
an eligible customer to elect service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Company. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission of the Company's 
rate.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border

[[Page 41022]]

of the Virginia Electric and Power Company System and the cost to the 
Government for transmission of power from the John H. Kerr Project to 
the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving American Electric 
Power Service Corporation's Open Access Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by American 
Electric Power Service Corporation under section 205 of the Federal 
Power Act or Southeastern Power Administration under section 206 of the 
Federal Power Act or otherwise.

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule NC-1

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted pursuant 
to a contract between the Government and Virginia Electric and Power 
Company (hereinafter called the Virginia Power), scheduled pursuant to 
a contract between the Government and Carolina Power & Light Company 
(hereinafter called CP&L), and billed pursuant to contracts between the 
Government and the Customer. Nothing in this rate schedule shall 
preclude modifications to the aforementioned contracts to allow an 
eligible customer to elect service under another rate schedule.

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Virginia 
Power's transmission and distribution system.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:

Capacity Charge

    $1.96 Per kilowatt of total contract demand per month.

Energy Charge

    8.25 Mills per kilowatt-hour.
    Additional rates for Transmission, System Control, Reactive, and 
Regulation Services provided under this rate schedule shall be the 
rates charged Southeastern Power Administration by the Virginia Power 
and CP&L. Future adjustments to these rates will become effective upon 
acceptance for filing by the Federal Energy Regulatory Commission of 
Virginia Power's or CP&L's rate.

Transmission

    $1.36 Per kilowatt of total contract demand per month as of 
February, 2001, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The transmission charges are governed by and subject to 
refund based upon the determination in proceedings before the Federal 
Energy Regulatory Commission (FERC) involving Virginia Electric and 
Power Company's Open Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission and distribution charges 
paid by the Government in behalf of the Customer.

Tandem Transmission Charge

    $0.61 Per kilowatt of total contract demand per month, as an 
estimated cost as of January, 2002.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Carolina Power & Light System.

Transmission, System Control, Reactive, and Regulation Services

    The charges for Transmission, System Control, Reactive, and 
Regulation Services shall be governed by and subject to refund based 
upon the determination in the proceeding involving Virginia Electric 
and Power Company's or Carolina Power & Light Company's Open Access 
Transmission Tariff.

Contract Demand

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

Energy 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 the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by Virginia 
Electric and Power Company under Section 205 of the Federal Power Act 
or Southeastern Power Administration under Section 206 of the Federal 
Power Act or otherwise.

[[Page 41023]]

Billing Month

    The billing month for power sold under this schedule shall end at 
12 midnight on the last day of each calendar month.
[FR Doc. 01-19574 Filed 8-3-01; 8:45 am]
BILLING CODE 6450-01-P