[Federal Register Volume 68, Number 195 (Wednesday, October 8, 2003)]
[Notices]
[Pages 58082-58095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25502]


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DEPARTMENT OF ENERGY


Georgia-Alabama-South Carolina System

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of Rate Order.

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SUMMARY: The Deputy Secretary of the Department of Energy, confirmed 
and approved, on an interim basis, Rate Schedules SOCO-1-B, SOCO-2-B, 
SOCO-3-B, SOCO-4-B, ALA-1-K, MISS-1-K, Duke-1-B, Duke-2-B, Duke-3-B, 
Duke-4-B, Santee-1-B, Santee-2-B, Santee-3-B, Santee-4-B, SCE&G-1-B, 
SCE&G-2-B, SCE&G-3-B, SCE&G-4-B, Regulation-1, Replacement-1, Pump-1-A, 
and Pump-2. The rates were approved on an interim basis, effective on 
October 1, 2003, and through September 30, 2007, and are subject to 
confirmation and final approval by the Federal Energy Regulatory 
Commission.

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 July 15, 2003, in Docket No. EF02-3011-000, confirmed and 
approved 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. Rate schedules SOCO-1-B, SOCO-2-B, SOCO-3-B, SOCO-4-B, ALA-1-K, 
MISS-1-K, Duke-1-B, Duke-2-B, Duke-3-B, Duke-4-B, Santee-1-B, Santee-2-
B, Santee-3-B, Santee-4-B, SCE&G-1-B, SCE&G-2-B, SCE&G-3-B, SCE&G-4-B, 
Regulation-1, Replacement-1, Pump-1-A, and Pump-2 replace these 
schedules.

    Dated: September 26, 2003.
Kyle E. McSlarrow,
Deputy Secretary.

In the Matter of Southeastern Power Administration B;--Georgia-
Alabama-South Carolina Rates; Rate Order; No. Southeastern-44

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

[[Page 58083]]

vested in the Secretary of Energy. By Delegation Order No. 00-037.00 
(December 6, 2001), the Secretary of Energy delegated to the 
Administrator of Southeastern the authority to develop power and 
transmission rates, and delegated to the Deputy Secretary of the 
Department of Energy 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 order is issued by the 
Deputy Secretary pursuant to said delegation.

Background

    Power from the Georgia-Alabama-South Carolina System is presently 
sold under 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. These rate schedules were approved by the FERC on July 15, 2003, for 
a period ending September 30, 2007 (104 FERC 62028).

Public Notice and Comment

    Notice of proposed rate adjustment was published in the Federal 
Register April 16, 2003 (68 FR 18619). In the notice, Southeastern 
proposed a rate increase of about twenty per cent. The notice advised 
interested parties of a public information and comment forum to be held 
in Atlanta, Georgia on May 29, 2003 Written comments were accepted on 
or before July 15, 2003. The following is a summary of the comments:

Staff Review of Public Comments

    Notice of proposed rate adjustment was published in the Federal 
Register April 16, 2003 (68 FR 18619). The notice advised interested 
parties of a proposed rate increase of about twenty percent (20%). A 
public information and comment forum was scheduled for May 29, 2003. 
Written comments were accepted on or before July 15, 2003. Written 
comments were received from two sources pursuant to this notice.
    The following comments were received during the public comment 
period. Southeastern response follows each comment.
    Comment 1: With respect to the Richard B. Russell Project, the 
Customers reserve the right to comment on the final cost allocation, 
once it is completed.
    Response 1: Southeastern will support the Customers right to 
respond to the cost allocation, once the Corps has provided a completed 
draft to Southeastern.
    Comment 2: The Customers would like to commend Southeastern for its 
decision to exclude from its proposed rates Interest During 
Construction (``IDC'') costs associated with the Russell Project from 
Fiscal Year 1993 going forward. These interest costs have accumulated 
as a result of protracted litigation between local and national 
environmental groups, the South Carolina Department of Natural 
Resources (``SCDNR''), and the Federal Government. The Customers 
neither initiated nor participated in the litigation, nor were they 
responsible for the decision to proceed with construction when there 
was no certainty as to whether or not the project would become 
commercially operable. The Customers should not be held responsible for 
paying the interest that has accumulated as a result of this 
litigation.
    There is an important precedent for Southeastern's proposed 
exclusion of Russell Project costs that are not properly considered 
used and useful for hydropower generation: the Southwestern Power 
Administration's (Southwestern) treatment of hydropower's cost 
allocation share at the Harry S. Truman Project in Missouri. The 
Customers understand that Southwestern and the Corps have completed an 
arrangement whereby a significant portion of hydropower's original cost 
allocation has been reallocated away from hydropower, because some of 
the costs are not properly borne by hydropower. The Southwestern-Corps 
agreement for the Truman Project is based on the important concept that 
costs incurred for project construction that are neither used nor 
useful for hydropower should not be included in customer rates. For 
these reasons, we support the methodology that Southeastern has 
selected in excluding IDC costs from its rate base in the present 
repayment study and urge Southeastern to support permanent exclusion of 
IDC costs to resolve the question.
    Response 2: Southeastern believes that IDC costs are legitimate 
costs that should be recovered. The question is when should the IDC 
computation end and to what purpose the IDC should be allocated. The 
portion of the IDC costs at the Richard B. Russell Project of concern 
to Southeastern are the IDC costs that accumulated over the nine-year 
period, from 1993 to 2002. These costs occurred when the pump-back 
units at the project were available for use; however, a Federal 
District Court enjoined their operation until 2002. Southeastern is in 
discussion with the Corps of Engineers on how these particular costs 
should be treated. Southeastern does not comment on the Customers' 
characterization of the treatment of IDC costs at the Harry S. Truman 
Project.
    Comment 3: Several comments pertained to the appropriateness and 
accuracy of the estimates for Corps Operation & Maintenance Expenses 
(O&M) and Renewals & Replacements (R&R). Examples are as follows:
    [sbull] The SeFPC is particularly concerned about the Corps' cost 
estimates of O&M Expenses, as reflected in its proposed rates. 
Southeastern's Rate and Repayment study dated May 29, 2003, assumes an 
increase from $36,591,149 in fiscal year 2004 to $37,949,000 in fiscal 
year 2005 for Corps' O&M expenses. We believe these projections do not 
accurately reflect the Corps' annual appropriations, as provided by 
Congress. Proposed O&M funding for Corps' projects in the Georgia-
Alabama-South Carolina System has decreased significantly in the 
President's budget request for the upcoming fiscal year. Unless 
Congress ignores the President's request and increases O&M funding 
levels across-the-board for these projects, we fear that Southeastern's 
customers may be charged for costs that will never be incurred for 
actual O&M.
    [sbull] The Customers believe Southeastern should take a closer 
look at the differences between the projected R&R expenses provide by 
the Corps in its repayment study and the proposed Congressional 
appropriations for Corps' Construction General funds in the upcoming 
fiscal year.
    [sbull] [The Customers] would like to work closely with 
Southeastern and the Corps to ensure that the O&M and R&R projections 
in Southeastern's rates are consistent with funds appropriated by 
Congress. For example, one method Southeastern may use is a three-year 
historical average of the amounts the Corps was appropriated.
    Response 3: Southeastern is using projections of Corps O&M expenses 
provided by the Corps in April 2002. Southeastern believes these 
earlier estimates are more reasonable than those provided most 
recently.
    However, capitalized cost projections used in developing these 
proposed rates are those most recently provided by the Corps. 
Southeastern is concerned with the disparity between the capitalized

[[Page 58084]]

projections included in the system repayment study and the funding for 
capitalized item actually provided by the Corps. Section 10 (l.) of DOE 
Procedure RA 6120.2 requires that ``Future replacement costs will be 
included in the repayment studies by adding the estimated capital cost 
of replacement to the unpaid Federal Investment in the year each 
replacement is estimated to go into service, and adding it to the 
allowable unamortized investment.'' As such, Southeastern must include 
the best available projection of Corps replacements in the repayment 
study.
    Comment 4: The Customers understand that at the Walter F. George 
project, capital additions for 2003 are projected to be in excess of 
$24 million. The Customers understand that portions of these costs may 
be for purposes other than hydropower, and therefore should be excluded 
from the repayment study.
    Response 4: The comment refers to the costs of construction of a 
Secant Wall at the Walter F. George Project. This wall is necessary to 
prevent seepage of water under the Walter F. George Dam. Southeastern 
considers this investment to qualify as ``Dam Safety''. Therefore, 
under 33 U.S.C. 467n; 100 STAT. 4263, fifteen per cent (15%) of the 
project cost should qualify for cost recovery as a joint cost while the 
remainder should be considered non-reimbursable. As of the time of this 
rate adjustment, the Corps has not concurred with Southeastern in this 
opinion. Until the Corps concurs with Southeastern in this opinion, 
Southeastern will include 100 percent of the joint costs allocated to 
power in the Repayment Study for the Georgia-Alabama-South Carolina 
System.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in July 2003, 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, 2003, and ending no later 
than September 30, 2007.

Order

    In view of the foregoing and pursuant to the authority vested in me 
as the Deputy Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective October 1, 2003, attached Wholesale Power Rate 
Schedules SOCO-1-B, SOCO-2-B, SOCO-3-B, SOCO-4-B, ALA-1-K, MISS-1-K, 
Duke-1-B, Duke-2-B, Duke-3-B, Duke-4-B, Santee-1-B, Santee-2-B, Santee-
3-B, Santee-4-B, SCE&G-1-B, SCE&G-2-B, SCE&G-3-B, SCE&G-4-B, 
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: September 26, 2003.
Kyle E. McSlarrow,
Deputy Secretary.

Wholesale Power Rate Schedule SOCO-1-B

    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $2.08 Per kilowatt of total contract demand per month 
as of March 2003 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

[[Page 58085]]

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 Southeastern rate 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 see 
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. As of March 2003, 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 Southeastern 
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-B

    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 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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $2.08 Per kilowatt of total contract demand per month 
as of March 2003 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 Southeastern rate 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.
    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. As of March 2003, 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 Southeastern 
under Section 206 of the Federal Power Act or otherwise.
    Billing Month: The billing month for power sold under this schedule 
shall

[[Page 58086]]

end at 12 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule SOCO-3-B

    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.
    Generation Services: $0.12 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 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule SOCO-4-B

    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 Services, 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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule ALA-1-K

    Availability: This rate schedule shall be available to 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 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

[[Page 58087]]

services provided under this rate schedule for the period specified 
shall be:

Capacity Charge: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.
    Generation Services: $0.12 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.
    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-K

    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 three phase 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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $1.88 Per kilowatt of total contract demand per month 
as of March 2003 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.
    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-B

    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $0.87 Per kilowatt of total contract demand per month 
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

[[Page 58088]]

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%) as of March 2003). 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 Southeastern 
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-B

    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $0.87 Per kilowatt of total contract demand per month 
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%) as of March 2003). 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 Southeastern 
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-B

    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.

[[Page 58089]]

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

    Capacity Charge: $3.39 Per kilowatt of total contract demand per 
month.
    Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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-B

    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.
    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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-B

    Availability: This rate schedule shall be available to public 
bodies and cooperatives (any one of whom is hereinafter call 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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $1.52 Per kilowatt of total contract demand per month 
as of March 2003 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

[[Page 58090]]

(2%) as of March 2003). 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 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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.014

Wholesale Power Rate Schedule Santee-2-B

    Availability: This rate schedule shall be available to public 
bodies and cooperatives (any one of whom is hereinafter call 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.
    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $1.52 Per kilowatt of total contract demand per month 
as of March 2003 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%) as of March 2003). 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 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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.015

Wholesale Power Rate Schedule Santee-3-B

    Availability: This rate schedule shall be available to public 
bodies and cooperatives (any one of whom is hereinafter call 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.

[[Page 58091]]

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

Capacity Charge: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.016

Wholesale Power Rate Schedule Santee-4-B

    Availability: This rate schedule shall be available to public 
bodies and cooperatives (any one of whom is hereinafter call 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.
    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.017

Wholesale Power Rate Schedule SCE&G-1-B

    Availability: This rate schedule shall be available to 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

[[Page 58092]]

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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $1.01 Per kilowatt of total contract demand per month 
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 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-B

    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 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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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: $1.01 Per kilowatt of total contract demand per month 
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 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). 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 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-B

    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

[[Page 58093]]

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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.
    Generation Services: $0.12 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 Power Rate Schedule SCE&G-4-B

    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: $3.39 Per kilowatt of total contract demand per month.
Energy Charge: 8.39 Mills per kilowatt-hour.

    Generation Services: $0.12 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 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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.035

[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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.036

(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.)
[GRAPHIC] [TIFF OMITTED] TN08OC03.037

(Cost of energy for pumping for this rate schedule is equal to the cost 
of energy purchased or supplied for the benefit of

[[Page 58094]]

the customer plus the cost of energy in storage carried over from the 
month preceding the specified month.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.018

(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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.019

(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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.020


= 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.

[GRAPHIC] [TIFF OMITTED] TN08OC03.021

= Kilowatt-hours of energy purchased or supplied for the benefit of the 
customer for

[GRAPHIC] [TIFF OMITTED] TN08OC03.022


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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.023


= Kilowatt-hours of energy in storage as of the end of the month 
immediately preceding the specified month.

[GRAPHIC] [TIFF OMITTED] TN08OC03.024


= Weighted average cost of energy for pumping for the month immediately 
preceding the specified month.

[GRAPHIC] [TIFF OMITTED] TN08OC03.038

(Weighted average energy conversion factor is equal to the energy 
generated from pumping divided by the total energy for pumping)
[GRAPHIC] [TIFF OMITTED] TN08OC03.039

= Energy generated from pumping.
[GRAPHIC] [TIFF OMITTED] TN08OC03.040

= 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 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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.041

[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:

[GRAPHIC] [TIFF OMITTED] TN08OC03.025

(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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.026


(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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.027


(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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.028

(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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.029


= 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.

[GRAPHIC] [TIFF OMITTED] TN08OC03.030


= Kilowatt-hours of energy purchased or supplied for the benefit of the 
customer for
[GRAPHIC] [TIFF OMITTED] TN08OC03.031


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.)

[GRAPHIC] [TIFF OMITTED] TN08OC03.032


= Kilowatt-hours of energy in storage as of the end of the month 
immediately preceding the specified month.

[GRAPHIC] [TIFF OMITTED] TN08OC03.033


= Weighted average cost of energy for pumping for the month immediately 
preceding the specified month.

[GRAPHIC] [TIFF OMITTED] TN08OC03.034

(Weighted average energy conversion factor is equal to the energy 
generated from pumping divided by the total energy for pumping)

[[Page 58095]]

[GRAPHIC] [TIFF OMITTED] TN08OC03.042

= Energy generated from pumping.
[GRAPHIC] [TIFF OMITTED] TN08OC03.043

= 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 midnight on the last day of each calendar month.

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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.044

[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:
[GRAPHIC] [TIFF OMITTED] TN08OC03.045

(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.)
[GRAPHIC] [TIFF OMITTED] TN08OC03.046

= Dollars cost of energy purchased for replacement energy during the 
specified month, including all direct costs to deliver energy to the 
project.
[GRAPHIC] [TIFF OMITTED] TN08OC03.047

= Kilowatt-hours of energy purchased for replacement energy during the 
specified month.
[GRAPHIC] [TIFF OMITTED] TN08OC03.048

= Energy loss factor for transmission on replacement energy purchased 
(Expected to be 0 or zero percent.)
[GRAPHIC] [TIFF OMITTED] TN08OC03.049

= 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 midnight on the last day of each calendar month.
[FR Doc. 03-25502 Filed 10-7-03; 8:45 am]
BILLING CODE 6450-01-P