[Federal Register Volume 67, Number 153 (Thursday, August 8, 2002)]
[Notices]
[Pages 51564-51578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20060]


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DEPARTMENT OF ENERGY


Georgia-Alabama-South Carolina Rates, Rate OrderNo. SEPA-41

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: The Secretary of Department of Energy, confirmed and approved, 
on an interim basis, Rate Schedules SOCO-1-A, SOCO-2-A, SOCO-3-A, SOCO-
4-A, ALA-1-J, MISS-1-J, Duke-1-A, Duke-2-A, Duke-3-A, Duke-4-A, Santee-
1-A, Santee-2-A, Santee-3-A, Santee-4, SCE&G-1-A, SCE&G-2-A, SCE&G-3-A, 
SCE&G-4-A, Regulation-1, Replacement-1, Pump-1-A, and Pump-2. The rates 
were approved on an interim basis through September 30, 2007, and are 
subject to confirmation and approval by the Federal Energy Regulatory 
Commission on a final basis.

DATES: Approval of rate on an interim basis is effective through 
September 30, 2007.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance & Marketing, Southeastern Power Administration, 
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-
6711, (706)-213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by 
Order issued February 26, 1999, in Docket No. EF98-3011-000, confirmed 
and approved Wholesale Power Rate Schedules SOCO-1, SOCO-2, SOCO-3, 
SOCO-4, ALA-1-I, MISS-1-I, Duke-1, Duke-2, Duke-3, Duke-4, Santee-1, 
Santee-2, Santee-3, Santee-4, SCE&G-1, SCE&G-2, SCE&G-3, SCE&G-4, and 
Pump-1. On April 23, 1999, in Docket No. EF98-3011-001, the Commission 
issued an order granting rehearing for further consideration. On July 
31, 2001, in the same docket number, the Commission issued an order 
denying rehearing. Rate schedules SOCO-1-A, SOCO-2-A, SOCO-3-A, SOCO-4-
A, ALA-1-J, MISS-1-J, Duke-1-A, Duke-2-A, Duke-3-A, Duke-4-A, Santee-1-
A, Santee-2-A, Santee-3-A, Santee-4-A, SCE&G-1-A, SCE&G-2-A, SCE&G-3-A, 
SCE&G-4-A, Regulation-1, Replacement-1, Pump-1-A, and Pump-2 replace 
these schedules.

    Dated: July 25, 2002.
Spencer Abraham,
Secretary.

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 FR 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. On December 
6, 2001, the Secretary of Energy issued Delegation Order No. 00-001.00, 
granting the Deputy Secretary authority to confirm, approve, and place 
into effect Southeastern's rates on an interim basis. Because there is 
no Deputy Secretary at the present time, the Secretary of Energy has 
exercised his authority to confirm, approve, and place into effect on 
an interim basis the rate schedules in Southeastern Rate Order No. 41.

Background

    Power from the Georgia-Alabama-South Carolina System is presently 
sold under Wholesale Power Rate Schedules SOCO-1, SOCO-2, SOCO-3, SOCO-
4, ALA-1-I, MISS-1-I, Duke-1, Duke-2, Duke-3, Duke-4, Santee-1, Santee-
2, Santee-3, Santee-4, SCE&G-1, SCE&G-2, SCE&G-3, SCE&G-4, and Pump-1. 
These rate schedules were approved by the FERC on February 26, 1999, 
for a period ending September 30, 2003 (93 FERC 62100).

Public Notice and Comment

    Notice of proposed rate adjustment was published in the Federal 
Register March 13, 2002 (67 FR 11325). In the notice, SEPA proposed 
four rate alternatives for public comment. SEPA proposed two rate 
alternatives that would continue the current rate design that included 
estimated purchases of replacement energy in the capacity and energy 
charges from SEPA. These were

[[Page 51565]]

designated ``Scenario 1A'' and ``Scenario 1B.'' In addition, SEPA 
proposed two rate alternatives that included a direct pass through of 
replacement energy costs. These were designated ``Scenario 2A'' and 
``Scenario 2B.'' Under version ``A'' of each of the two alternatives, 
70 percent of the generation costs were recovered from capacity sales 
and 30 percent were recovered from energy sales. Under version ``B'' of 
each of the two alternatives, 85 percent of the generation costs were 
recovered from capacity sales and 15 percent were recovered from energy 
sales.
    The notice advised interested parties of a public information and 
comment forum to be held in Atlanta, Georgia on April 18, 2002. Written 
comments were accepted on or before June 11, 2002. The following is a 
summary of the comments:

Staff Evaluation of Public Comments

    Written comments were received from nine sources pursuant to this 
notice. Eight of the sources specified a preference with regards to the 
distribution of generation costs between capacity and energy. There was 
no unanimity in preference for the either of the proposed versions (70/
30 or 85/15). Most comments did support some movement towards 
recovering more costs from capacity sales. SEPA is therefore proposing 
a division of 75 percent to capacity and 25 percent.
    The following are additional comments received on or before the 
June 11, 2002 deadline. SEPA's response follows each comment.
    Comment 1: SEPA will establish a Apass-through@ charge for 
replacement energy. With this change in the rate structure, the 
Customers will pay for their ratable share of replacement energy in the 
billing month in which replacement energy is purchased by SEPA. The 
SeFPC supports this approach, cognizant that it follows the statutory 
mandate to set rate schedules to allow for the lowest possible costs 
consistent with sound business principles.
    Response 1: SEPA will forward the proposed rate schedule for 
replacement energy, Replacement-1, to the Deputy Secretary with a 
request for interim approval.
    Comment 2: The Southeastern Federal Power Customers (SeFPC) remains 
concerned regarding the increase in operation and maintenance (AO&M@) 
expenses for the U. S. Army Corps of Engineers (Corps). The repayment 
study assumes an increase from $32,836,000 in fiscal year 2002 to 
$35,177,000 for fiscal year 2005. The SeFPC believes that this number 
merits further investigation by SEPA. The SeFPC does not understand why 
there is an increase for the Corps O&M expense.
    Response 2: Actual Corps O&M expenses were $31,735,000 in 1998, 
$29,090,000 in 1999, $36,692,000 in 2000, and $34,200,000 in 2001, 
which is an average compound increase of 1.9% per year. Estimated Corps 
O&M is $32,836,000 in 2002, $33,654,000 in 2003, $34,715,000 in 2004, 
and $35,177,000 in 2005 through the end of the study, which is an 
average compound increase of 1.7% per year for the 2002-2005 period. 
Should these estimates prove to be higher than the actual costs 
incurred, SEPA's repayment of investment will be greater than 
anticipated, which will reduce the impact on the next rate adjustment 
for the system. Should these estimates prove to be too low, SEPA may be 
required to adjust rates earlier than this filing anticipates. SEPA 
believes that the estimates provided by the Corps are reasonable. SEPA 
will work with the Corps and the customers in an effort to reduce O&M 
expenses charged to power in the Southeastern Federal Power Program.
    Comment 3: The SeFPC reminds SEPA that the amount included in rates 
for renewals and replacements has exceeded the amount appropriated by 
Congress for renewals and replacements by $124 million.
    Response 3: The amount listed represents all of SEPA's four 
repayment systems. The amount for the Georgia-Alabama-South Carolina 
System is $39 million. SEPA will work with the Corps to assure the 
accuracy of projected replacements.
    Comment 4: The SeFPC supports the current decision by SEPA not to 
include costs for the Russell Pumped Storage Units in this rate 
increase.
    Response 4: The Russell Pump Storage units have not been included 
in these proposed rates.
    Comment 5: SEPA has proposed a pass-through mechanism to recover 
replacement energy costs. Removal of those costs from the charges that 
recover generation costs results in an effective shift of about two 
percentage points of generation costs from a capacity charge to an 
energy charge. Because both of these changes [pass-through recovery of 
replacement energy and an increase in the percentage of generation 
costs recovered from capacity] increase revenue stability, it would 
seem sufficient to implement only one change at this time to stabilize 
SEPA's revenue as it seeks to respond to the need to provide greater 
assurance that it will meet its repayment obligations on a more regular 
basis. Oglethorpe suggests that SEPA consider implementing only one 
change [in rate design] to provide an opportunity to determine whether 
that change is sufficient to provide the revenue stability to assure 
that [SEPA] will meet its repayment obligation.
    Response 5: Replacement energy costs are estimated to average $3.2 
million per year. Based on this estimate, the comment that this has 
shifted about two percentage points of generation costs from a capacity 
charge to an energy charge is accurate. However, there is considerable 
variation in the actual replacement energy costs associated with this 
estimate. In an average water year, SEPA will not purchase replacement 
energy. In a poor water year, replacement energy costs have been as 
high as $16 million. By recovering replacement energy costs from energy 
effectively shifts considerable risk of cost fluctuations to energy 
customers. SEPA believes that this justifies a shift of more than two 
percent of generation costs from energy to capacity to compensate.
    Comment 6: Oglethorpe is concerned about the methodology used to 
calculate the generation services charge. SEPA has set rates for 
certain ancillary services based on Southern Company's Open Access 
Transmission Tariff (OATT). Because SEPA pays Southern Company a flat 
fee for all ancillary services, SEPA has arbitrarily assumed that 
reductions in the OATT charges for certain ancillary services were 
offset by increases in the cost of all other ancillary services 
purchased by the flat fee. SEPA should reconsider the cost allocation 
of this flat fee to recognize that its costs were not reduced as a 
result of reductions in the OATT rate for ancillary services.
    Response 6: The Generation Services charge is to recover the cost 
of ancillary services charged by the Southern Company. SEPA pays 
Southern Company $4,428,000 annually for ancillary services as part of 
a negotiated contract for services. SEPA charges affected customers for 
Scheduling, System Control and Dispatch Services, Reactive Supply and 
Voltage Control from Generation Sources Services, and Regulation and 
Frequency Response Services at Southern Company's current OATT rate for 
these services. Any portion of Southern Company's annual charge for 
ancillary services not recovered through the above three charges is 
recovered through a Generation Services charge. The Generation Services 
charge is charged to all customers of the Georgia-Alabama-South 
Carolina System.

[[Page 51566]]

    When Southern Company updates the OATT rates for the three 
ancillary services listed above, SEPA updates these rates for the 
affected customers. However, as a result of a negotiated ancillary 
services charge between SEPA and Southern Company, SEPA does not pay 
the filed OATT rates, this requires a change in the Generation Services 
charge.
    SEPA established this process with rates that were proposed in 
1998. SEPA is proposing to continue this process with these proposed 
rates. In 1998, SEPA anticipated that the $4,428,000 negotiated 
ancillary services charge would be replaced with an ``unbundled'' 
arrangement. SEPA established the design of the generation services 
charge in anticipation of this unbundling. As such, SEPA does not 
believe it is appropriate to refer to the rate design as arbitrary.
    SEPA continues to anticipate that the negotiated ancillary services 
charge will be replaced with an unbundled arrangement. The timing of 
this change is uncertain. However, SEPA believes it is appropriate to 
continue to pass through any changes in Southern Company's ancillary 
services to the affected customers when Southern Company adjusts these 
rates.
    Comment 7: SEPA has suggested that it might be able to convert some 
must run energy into energy that [South Mississippi Electric Power 
Association (SMEPA) and Alabama Electric Cooperative (AEC)] could 
schedule during peak hours through a pumping conversion factor. At this 
time, (SMEPA and AEC are) interested in pursuing this arrangement.
    Response 7: SEPA can use must run energy for pumping operations at 
the Carters, and, if it comes on-line, the Richard B. Russell projects. 
This would replace pumping energy that SEPA would otherwise purchase. 
This energy would then become part of the customer's minimum energy. 
The total energy delivered to the customer would be reduced. SEPA will 
propose a new rate schedule, Pump-2, to allow customers who elect to 
allow SEPA to use their must run energy for pumping to receive this 
energy on-peak at a lower rate than other energy from pumping.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in July, 2002, for the Georgia-Alabama-South Carolina 
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.

Availability of Information

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

Submission to the Federal Energy Regulatory Commission

    The rates hereinafter confirmed and approved on an interim basis, 
together with supporting documents, will be submitted promptly to the 
Federal Energy Regulatory Commission for confirmation and approval on a 
final basis for a period beginning October 1, 2002, and ending no later 
than September 30, 2007.

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, 2007, attached Wholesale Power Rate 
Schedules SOCO-1-A, SOCO-2-A, SOCO-3-A, SOCO-4-A, ALA-1-J, MISS-1-J, 
Duke-1-A, Duke-2-A, Duke-3-A, Duke-4-A, Santee-1-A, Santee-2-A, Santee-
3-A, Santee-4-A, SCE&G-1-A, SCE&G-2-A, SCE&G-3-A, SCE&G-4-A, 
Regulation-1, Replacement-1, Pump-1-A, and Pump-2. The rate schedules 
shall remain in effect on an interim basis through September 30, 2007, 
unless such period is extended or until the FERC confirms and approves 
them or substitute rate schedules on a final basis.

    Dated: July 25, 2002.
Spencer Abraham,
Secretary.

Wholesale Power Rate Schedule SOCO-1-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Georgia, Alabama, Mississippi, and Florida to whom power may be 
transmitted and scheduled pursuant to contracts between the Government 
and Southern Company Services, Incorporated (hereinafter called the 
Company) 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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

    $3.09 Per kilowatt of total contract demand per month.

Energy Charge

    6.39 Mills per kilowatt-hour.

Generation Services

    $0.13 Per kilowatt of total contract demand per month.
    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

[[Page 51567]]

Energy Regulatory Commission of the Company's rate.

Transmission

    $1.51 Per kilowatt of total contract demand per month as of 
February 2002 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 initial monthly transmission demand charge shall be 
determined by multiplying the Government's Load Ratio Share time one 
twelfth (\1/12\) of Southern Companies' Annual Transmission Costs as 
specified in Schedule 1 of the Government-Company Contract. The 
transmission charges are governed by and subject to refund based upon 
the determination in proceedings before the Federal Energy Regulatory 
Commission (FERC) involving Southern Companies' Open Access 
Transmission Tariff (OATT). The distribution charges may be modified by 
FERC pursuant to application by the Company under section 205 of the 
Federal Power Act or the Government under section 206 of the Federal 
Power Act.
    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.
    Scheduling, System Control and Dispatch Service: $0.0806 Per 
kilowatt of total contract demand per month.
    Reactive Supply and Voltage Control from Generation Sources 
Service: $0.11 Per kilowatt of total contract demand per month.
    Regulation and Frequency Response Service: $0.0483 Per kilowatt of 
total contract demand per month.

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 Southern Companies' 
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. Applicable energy 
losses are as follows:

Transmission facilities, 3.0%
Distribution Substations, 0.9%
Distribution Lines, 2.25%

    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by Southern 
Companies under section 205 of the Federal Power Act or SEPA 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 SOCO-2-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Georgia, Alabama, Mississippi, and Florida to whom power may be 
transmitted pursuant to contracts between the Government and Southern 
Company Services, Incorporated (hereinafter called the Company) and the 
Customer. The Customer is responsible for providing a scheduling 
arrangement with the Government. 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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: $1.51 Per kilowatt of total contract demand per month 
as of February 2002 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 initial monthly transmission demand charge shall be 
determined by multiplying the Government's Load Ratio Share time one 
twelfth (\1/12\) of Southern Companies' Annual Transmission Costs as 
specified in Schedule 1 of the Government-Company Contract. The 
transmission charges are governed by and subject to refund based upon 
the determination in proceedings before the Federal Energy Regulatory 
Commission (FERC) involving Southern Companies' Open Access 
Transmission Tariff (OATT). The distribution charges may be modified by 
FERC pursuant to application by the Company under section 205 of the 
Federal Power Act or the Government under section 206 of the Federal 
Power Act.
    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.
    Reactive Supply and Voltage Control from Generation Sources 
Service: $0.11 Per kilowatt of total contract demand per month.

[[Page 51568]]

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 Southern Companies' 
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. Applicable energy 
losses are as follows:

Transmission facilities, 3.0%
Distribution Substations, 0.9%
Distribution Lines, 2.25%

    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by Southern 
Companies under Section 205 of the Federal Power Act or EPA 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 SOCO-3-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Georgia, Alabama, Mississippi, and Florida to whom power may be 
scheduled pursuant to contracts between the Government and Southern 
Company Services, Incorporated (hereinafter called the Company) and the 
Customer. 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects (hereinafter 
referred to collectively as the Projects) and sold under appropriate 
contracts between the Government and the Customer. This rate schedule 
does not apply to energy from pumping operations at the Carters and 
Richard B. Russell Projects.

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

    $3.09 Per kilowatt of total contract demand per month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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.
    Scheduling, System Control and Dispatch Service: $0.0806 Per 
Kilowatt of total contract demand per month.
    Regulation and Frequency Response Service: $0.0483 Per Kilowatt of 
total contract demand per month.

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 Southern Companies' 
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 SOCO-4-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Georgia, Alabama, Mississippi, and Florida served through the 
transmission facilities of Southern Company Service, Inc. (hereinafter 
called the Company) or the Georgia Integrated Transmission System. 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects (hereinafter 
referred to collectively as the Projects) and sold under appropriate 
contracts between the Government and the Customer. This rate schedule 
does not apply to energy from pumping operations at the Carters and 
Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.

[[Page 51569]]

    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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, 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 Southern Companies' 
Open Access Transmission Tariff.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract that 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 ALA-1-J

Availability

    This rate schedule shall be available to the Alabama Electric 
Cooperative, Incorporated (hereinafter called the Cooperative).

Applicability

    This rate schedule shall be applicable to power and accompanying 
energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. 
George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters, 
and Richard B. Russell Projects and sold under contract between the 
Cooperative and the Government. This rate schedule does not apply to 
energy from pumping operations at the Carters and Richard B. Russell 
Projects.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 Hertz and shall 
be delivered at the Walter F. George, West Point, and Robert F. Henry 
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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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 Southern 
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, 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 Southern Companies' 
Open Access Transmission Tariff.

Energy To Be Furnished by the Government

    The Government will sell to the Cooperative and the Cooperative 
will purchase from the Government those quantities of energy specified 
by contract as available to the Cooperative for scheduling on a weekly 
basis.

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 MISS-1-J

Availability

    This rate schedule shall be available to the South Mississippi 
Electric Power Association (hereinafter called the Customer) to whom 
power may be wheeled pursuant to contracts between the Government and 
Alabama Electric Cooperative, Inc. (hereinafter called AEC).

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

Character of Service

    The electric capacity and energy supplied hereunder will be 
threephase alternating current at a nominal frequency of 60 Hertz 
delivered at the delivery points of the Customer on AEC's transmission 
and distribution system. The voltage of delivery will be maintained 
within the limits established by the state regulatory commission.

Monthly Rate

    The monthly rate for capacity, energy, and generation services 
provided under this rate schedule for the period specified shall be:
    Capacity Charge: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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

    $1.854 per kilowatt of total contract demand per month as of 
February 2002 is presented for illustrative purposes. This rate is 
subject to annual adjustment on January 1, and will be computed subject 
to the Appendix A attached to the Government-AEC contract.

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 Southern Companies' 
Open Access Transmission Tariff.

[[Page 51570]]

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract that 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 Cooperative and the Cooperative 
will purchase from the Government those quantities of energy specified 
by contract as available to the Cooperative for scheduling on a weekly 
basis.

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 Duke-1-A

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 Duke Power 
Company (hereinafter called the Company) 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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: $0.93 Per kilowatt of total contract demand per month 
as of February 2002 is presented for illustrative purposes.
    The initial transmission charge will be the Customers' ratable 
share of the Transmission Distribution Charges paid by the Government. 
The initial monthly transmission demand charge shall reflect the 
Government's Load Ratio Share Responsibility. The Load Ratio Share 
shall be computed each month and shall be the ratio of the Network Load 
to the average of the Company's Transmission System load for each of 
the 12 preceding months. The Company's Transmission System Load shall 
be the load as determined in Section 34.3 of the Company's Pro Forma 
Open Access Transmission Tariff (the Tariff). The Government shall pay 
a monthly demand charge which shall be determined by multiplying its 
Load Ratio Share by \1/12\ of the Annual Transmission Revenue 
Requirement set forth in Attachment H of the Company's Tariff.
    Proceedings before FERC involving the Tariff 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.

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 of three per cent (3%)). The Customer's 
contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Company's system. These losses shall be effective until modified by the 
Federal Energy Regulatory Commission, pursuant to application by the 
Company under section 205 of the Federal Power Act or SEPA 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 Duke-2-A

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 Duke Power Company 
(hereinafter called the Company) and the Customer. The Customer is 
responsible for providing a scheduling arrangement with the Government. 
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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.

[[Page 51571]]

    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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: $0.93 Per kilowatt of total contract demand per month 
as of February 2002 is presented for illustrative purposes.
    The initial transmission charge will be the Customers' ratable 
share of the Transmission Distribution Charges paid by the Government. 
The initial monthly transmission demand charge shall reflect the 
Government's Load Ratio Share Responsibility. The Load Ratio Share 
shall be computed each month and shall be the ratio of the Network Load 
to the average of the Company's Transmission System load for each of 
the 12 preceding months. The Company's Transmission System Load shall 
be the load as determined in Section 34.3 of the Company's Pro Forma 
Open Access Transmission Tariff (the Tariff). The Government shall pay 
a monthly demand charge which shall be determined by multiplying its 
Load Ratio Share by \1/12\ of the Annual Transmission Revenue 
Requirement set forth in Attachment H of the Company's Tariff.
    Proceedings before FERC involving the Tariff 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.

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 of three per cent (3%)). The Customer's 
contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Company's system. These losses shall be effective until modified by the 
Federal Energy Regulatory Commission, pursuant to application by the 
Company under section 205 of the Federal Power Act or SEPA 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 Duke-3-A

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 Duke Power Company 
(hereinafter called the Company) and the Customer. 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the Savannah River 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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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.

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 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule Duke-4-A

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 Duke Power Company (hereinafter called the Company) and 
the Customer. The Customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

[[Page 51572]]

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the Savannah River 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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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.

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 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule Santee-1-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
South Carolina to whom power may be wheeled and scheduled pursuant to 
contracts between the Government and South Carolina Public Service 
Authority (hereinafter called the Authority). Nothing in this rate 
schedule shall preclude an eligible customer from electing 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Authority'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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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 Authority. 
Future adjustments to these rates will become effective upon acceptance 
for filing by the Federal Energy Regulatory Commission of the 
Authority's rate.
    Transmission: $1.59 Per kilowatt of total contract demand per month 
as of February 2002 is presented for illustrative purposes.
    The initial transmission rate is subject to annual adjustment on 
July 1 of each year, and will be computed subject to the formula 
contained in Appendix A to the Government-Authority Contract.
    Proceedings before the Federal Energy Regulatory Commission 
involving the Authority's Open Access Transmission Tariff 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.

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 
Authority (less applicable losses of two per cent (2%)). The Customer's 
contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Authority's system.

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.

Service Interruption

    When energy delivery to the Customer's system for the account of 
the Government is reduced or interrupted, and such reduction or 
interruption is not due to conditions on the Customer's system, the 
demand charge for the month shall be appropriately reduced as to 
kilowatts of such capacity which have been interrupted or reduced for 
each day in accordance with the following formula:

Wholesale Power Rate Schedule Santee-2-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
South Carolina to whom power may be wheeled pursuant to contracts 
between the Government and South Carolina Public Service Authority 
(hereinafter called the Authority). The customer is responsible for 
providing a scheduling arrangement with the Government. Nothing in this 
rate schedule shall preclude an eligible customer from electing 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

[[Page 51573]]

Character of Service

    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Authority'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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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 Authority. 
Future adjustments to these rates will become effective upon acceptance 
for filing by the Federal Energy Regulatory Commission of the 
Authority's rate.
    Transmission: $1.59 Per kilowatt of total contract demand per month 
as of February 2002 is presented for illustrative purposes.
    The initial transmission rate is subject to annual adjustment on 
July 1 of each year, and will be computed subject to the formula 
contained in Appendix A to the Government-Authority Contract.
    Proceedings before the Federal Energy Regulatory Commission 
involving the Authority's Open Access Transmission Tariff 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.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract that 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 
Authority (less applicable losses of two per cent (2%)). The Customer's 
contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Authority's system.

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.

Service Interruption

    When energy delivery to the Customer's system for the account of 
the Government is reduced or interrupted, and such reduction or 
interruption is not due to conditions on the Customer's system, the 
demand charge for the month shall be appropriately reduced as to 
kilowatts of such capacity which have been interrupted or reduced for 
each day in accordance with the following formula:

Wholesale Power Rate Schedule Santee-3-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
South Carolina to whom power may be scheduled pursuant to contracts 
between the Government and South Carolina Public Service Authority 
(hereinafter called the Authority). The customer is responsible for 
providing a transmission arrangement. Nothing in this rate schedule 
shall preclude an eligible customer from electing 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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 Authority. 
Future adjustments to these rates will become effective upon acceptance 
for filing by the Federal Energy Regulatory Commission of the 
Authority's rate.

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 
Authority (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.

Service Interruption

    When energy delivery to the Customer's system for the account of 
the Government is reduced or interrupted, and such reduction or 
interruption is not due to conditions on the Customer's system, the 
demand charge for the month shall be appropriately reduced as to 
kilowatts of such capacity which have been interrupted or reduced for 
each day in accordance with the following formula:

Wholesale Power Rate Schedule Santee-4-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
South Carolina served through the transmission facilities of South 
Carolina Public Service Authority (hereinafter called the Authority). 
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 an eligible customer from electing 
service under another rate schedule.

[[Page 51574]]

Applicability

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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 Authority. 
Future adjustments to these rates will become effective upon acceptance 
for filing by the Federal Energy Regulatory Commission of the 
Authority's rate.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract that 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 
Authority (less applicable losses).

Billing Month

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

Service Interruption

    When energy delivery to the Customer's system for the account of 
the Government is reduced or interrupted, and such reduction or 
interruption is not due to conditions on the Customer's system, the 
demand charge for the month shall be appropriately reduced as to 
kilowatts of such capacity which have been interrupted or reduced for 
each day in accordance with the following formula:

Wholesale Power Rate Schedule SCE&G-1-A

Availability

    This rate schedule shall be available public bodies and 
cooperatives (any one of which is hereinafter called the Customer) in 
South Carolina to whom power may be wheeled and scheduled pursuant to 
contracts between the Government and the South Carolina Electric & Gas 
Company (hereinafter called the Company). Nothing in this rate schedule 
shall preclude an eligible customer from electing 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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: $1.13 Per kilowatt of total contract demand per month 
as of February 2002 is presented for illustrative purposes.
    The initial rate will be subject to monthly adjustment and will be 
computed subject to Section 7 of the Government-Company contract.
    Proceedings before the Federal Energy Regulatory Commission 
involving the Company's Open Access Transmission Tariff 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.

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.

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.

Conditions of Service

    The Customer shall at its own expense provide, install, and 
maintain on its side of each delivery point the equipment necessary to 
protect and control its own system. In so doing, the installation, 
adjustment, and setting of all such control and protective equipment at 
or near the point of delivery shall be coordinated with that which is 
installed by and at the expense of the Company on its side of the 
delivery point.

Wholesale Power Rate Schedule SCE&G-2-A

Availability

    This rate schedule shall be available public bodies and 
cooperatives (any one of which is hereinafter called the Customer) in 
South Carolina to whom

[[Page 51575]]

power may be wheeled pursuant to contracts between the Government and 
the South Carolina Electric & Gas Company (hereinafter called the 
Company). The customer is responsible for providing a scheduling 
arrangement with the Government. Nothing in this rate schedule shall 
preclude an eligible customer from electing 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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: $1.13 Per kilowatt of total contract demand per month 
as of February 2002 is presented for illustrative purposes.
    The initial rate will be subject to monthly adjustment and will be 
computed subject to Section 7 of the Government-Company contract.
    Proceedings before the Federal Energy Regulatory Commission 
involving the Company's Open Access Transmission Tariff 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.

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.

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.

Conditions of Service

    The Customer shall at its own expense provide, install, and 
maintain on its side of each delivery point the equipment necessary to 
protect and control its own system. In so doing, the installation, 
adjustment, and setting of all such control and protective equipment at 
or near the point of delivery shall be coordinated with that which is 
installed by and at the expense of the Company on its side of the 
delivery point.

Wholesale Power Rate Schedule SCE&G-3-A

Availability

    This rate schedule shall be available public bodies and 
cooperatives (any one of which is hereinafter called the Customer) in 
South Carolina to whom power may be scheduled pursuant to contracts 
between the Government and the South Carolina Electric & Gas Company 
(hereinafter called the Company). The customer is responsible for 
providing a transmission arrangement. Nothing in this rate schedule 
shall preclude an eligible customer from electing 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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract that 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.

Conditions of Service

    The Customer shall at its own expense provide, install, and 
maintain on its side of each delivery point the equipment necessary to 
protect and control its own system. In so doing, the installation, 
adjustment, and setting of all such control and protective

[[Page 51576]]

equipment at or near the point of delivery shall be coordinated with 
that which is installed by and at the expense of the Company on its 
side of the delivery point.

Wholesale Power Rate Schedule SCE&G-4-A

Availability

    This rate schedule shall be available public bodies and 
cooperatives (any one of which is hereinafter called the Customer) in 
South Carolina served through the transmission facilities of South 
Carolina Electric & Gas Company (hereinafter called the Company). 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 an eligible customer from electing 
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 Allatoona, Buford, J. 
Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, 
Robert F. Henry, Carters and Richard B. Russell Projects and sold under 
appropriate contracts between the Government and the Customer. This 
rate schedule does not apply to energy from pumping operations at the 
Carters and Richard B. Russell Projects.

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: $3.09 Per kilowatt of total contract demand per 
month.
    Energy Charge: 6.39 Mills per kilowatt-hour.
    Generation Services: $0.13 Per kilowatt of total contract demand 
per month.
    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.

Contract Demand

    The contract demand is the amount of capacity in kilowatts stated 
in the contract that 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 midnight on the last day of each calendar month.

Conditions of Service

    The Customer shall at its own expense provide, install, and 
maintain on its side of each delivery point the equipment necessary to 
protect and control its own system. In so doing, the installation, 
adjustment, and setting of all such control and protective equipment at 
or near the point of delivery shall be coordinated with that which is 
installed by and at the expense of the Company on its side of the 
delivery point.

Wholesale Rate Schedule Regulation-1

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Georgia, Alabama, Mississippi, Florida, South Carolina, or North 
Carolina to whom service is provided pursuant to contracts between the 
government and the customer.

Applicability

    This rate schedule shall be applicable to the sale of regulation 
services provided from the Allatoona, Buford, J. Strom Thurmond, Walter 
F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, 
Carters, and Richard B. Russell Projects (hereinafter called the 
Projects) and sold under appropriate contracts between the Government 
and the Customer.

Character of Service

    The service supplied hereunder will be delivered at the Projects.

Monthly Rate

    The rate for service supplied under this rate schedule for the 
period specified shall be: $0.05 per kilowatt of total contract demand 
per month.

Contract Demand

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

Billing Month

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

Wholesale Power Rate Schedule Replacement-1

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Georgia, Alabama, Mississippi, Florida, South Carolina, or North 
Carolina to whom power is provided pursuant to contracts between the 
Government and the customer.

Applicability

    This rate schedule shall be applicable to the sale at wholesale 
energy purchased to meet contract minimum energy and sold under 
appropriate contracts between the Government and the Customer.

Character of Service

    The energy supplied hereunder will be delivered at the delivery 
points provided for under appropriate contracts between the Government 
and the Customer.

Monthly Rate

    The rate for energy sold under this rate schedule for the months 
specified shall be: [computed to the nearest $.00001 (\1/100\ mill) per 
kwh]; (The weighted average cost of energy for replacement energy 
divided by one minus losses for delivery.)
    Where: The weighted average cost of energy for replacement energy 
is equal to the cost of replacement energy purchased divided by the 
replacement energy purchased, net losses.

    = Dollars cost of energy purchased for replacement energy during 
the specified month, including all direct costs to deliver energy to 
the project.
    = Kilowatt-hours of energy purchased for replacement energy during 
the specified month.
    = Energy loss factor for transmission on replacement energy 
purchased (Expected to be 0 or zero percent.)
    = Weighted average energy loss factor on energy delivered by the 
facilitator to the customer.

[[Page 51577]]

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 
Facilitator (less any losses required by the Facilitator). The 
Customer's contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Facilitator's system.

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 Pump-1-A

Availability

    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Georgia, Alabama, Mississippi, Florida, South Carolina, or North 
Carolina to whom power is provided pursuant to contracts between the 
Government and the customer.

Applicability

    This rate schedule shall be applicable to the sale at wholesale 
energy generated from pumping operations at the Carters and Richard B. 
Russell Projects and sold under appropriate contracts between the 
Government and the Customer. The energy will be segregated from energy 
from other pumping operations.

Character of Service

    The energy supplied hereunder will be delivered at the delivery 
points provided for under appropriate contracts between the Government 
and the Customer.

Monthly Rate

    The rate for energy sold under this rate schedule for the months 
specified shall be:

[computed to the nearest $.00001 (\1/100\ mill) per kwh]
(The weighted average cost of energy for pumping divided by the energy 
conversion factor, quantity divided by one minus losses for delivery.)
    Where:

(The weighted average cost of energy for pumping for this rate schedule 
is equal to the cost of energy purchased or supplied for the benefit of 
the customer for pumping divided by the total energy for pumping.)
(Cost of energy for pumping for this rate schedule is equal to the cost 
of energy purchased or supplied for the benefit of the customer plus 
the cost of energy in storage carried over from the month preceding the 
specified month.)
(Energy for pumping for this rate schedule is equal to the energy 
purchased or supplied for the benefit of the customer, after losses, 
plus the energy for pumping in storage as of the end of the month 
preceding the specified month.)
(Cost of energy in storage is equal to the weighted average cost of 
energy for pumping for the month preceding the specified month times 
the energy for pumping in storage at the end of the month preceding the 
specified month.)
    = Dollars cost of energy purchased or supplied for the benefit of 
the customer for pumping during the specified month, including all 
direct costs to deliver energy to the project.
    = Kilowatt-hours of energy purchased or supplied for the benefit of 
the customer for pumping during the specified month.
    = Energy loss factor for transmission on energy purchased or 
supplied for the benefit of the customer for pumping (Expected to be 
.03 or three percent.)
    = Kilowatt-hours of energy in storage as of the end of the month 
immediately preceding the specified month.
    = Weighted average cost of energy for pumping for the month 
immediately preceding the specified month.
(Weighted average energy conversion factor is equal to the energy 
generated from pumping divided by the total energy for pumping)
    = Energy generated from pumping.
= Weighted average energy loss factor on energy delivered by the 
facilitator to the customer.

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 
Facilitator (less any losses required by the Facilitator). The 
Customer's contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Facilitator's system.

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 Pump-2

Availability

    This rate schedule shall be available to public bodies and 
cooperatives who provide their own scheduling arrangement and elect to 
allow Southeastern to use a portion of their allocation for pumping 
(any one of whom is hereinafter called the Customer) in Georgia, 
Alabama, Mississippi, Florida, South Carolina, or North Carolina to 
whom power is provided pursuant to contracts between the Government and 
the customer.

Applicability

    This rate schedule shall be applicable to the sale at wholesale 
energy generated from pumping operations at the Carters and Richard B. 
Russell Projects and sold under appropriate contracts between the 
Government and the Customer. This energy will be segregated from energy 
from other pumping operations.

Character of Service

    The energy supplied hereunder will be delivered at the delivery 
points provided for under appropriate contracts between the Government 
and the Customer.

Monthly Rate

    The rate for energy sold under this rate schedule for the months 
specified shall be:

[computed to the nearest $.00001 (1/100 mill) per kwh]
(The weighted average cost of energy for pumping divided by the energy 
conversion factor, quantity divided by one minus losses for delivery.)

    Where:

(The weighted average cost of energy for pumping for this rate schedule 
is equal to the cost of energy purchased or supplied for the benefit of 
the customer for pumping divided by the total energy for pumping.)
(Cost of energy for pumping for this rate schedule is equal to the cost 
of energy purchased or supplied for the benefit of the customer plus 
the cost of energy in storage carried over from the month preceding the 
specified month.)
(Energy for pumping for this rate schedule is equal to the energy 
purchased or supplied for the benefit of the customer, after losses, 
plus the

[[Page 51578]]

energy for pumping in storage as of the end of the month preceding the 
specified month.)
(Cost of energy in storage is equal to the weighted average cost of 
energy for pumping for the month preceding the specified month times 
the energy for pumping in storage at the end of the month preceding the 
specified month.)
    = Dollars cost of energy purchased or supplied for the benefit of 
the customer for pumping during the specified month, including all 
direct costs to deliver energy to the project.
    = Kilowatt-hours of energy purchased or supplied for the benefit of 
the customer for pumping during the specified month.
    = Energy loss factor for transmission on energy purchased or 
supplied for the benefit of the customer for pumping (Expected to be 
.03 or three percent.)
    = Kilowatt-hours of energy in storage as of the end of the month 
immediately preceding the specified month.
    = Weighted average cost of energy for pumping for the month 
immediately preceding the specified month.
    (Weighted average energy conversion factor is equal to the energy 
generated from pumping divided by the total energy for pumping)
    = Energy generated from pumping.
    = Weighted average energy loss factor on energy delivered by the 
facilitator to the customer.

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 
Facilitator (less any losses required by the Facilitator). The 
Customer's contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Facilitator's system.

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.

[FR Doc. 02-20060 Filed 8-7-02; 8:45 am]
BILLING CODE 6450-01-P