[Federal Register Volume 70, Number 73 (Monday, April 18, 2005)]
[Notices]
[Pages 20119-20121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7694]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pick-Sloan Missouri Basin Program--Eastern Division--Notice of 
Proposed Transmission and Ancillary Services Rates--Rate Order No. 
WAPA-122

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Transmission and Ancillary Services Rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing a 
minor transmission and ancillary services rate adjustment for the Pick-
Sloan Missouri Basin Program--Eastern Division (P-SMBP--ED). The P-
SMBP--ED transmission and ancillary service rate schedules will expire 
on September 30, 2005. The proposed rates will provide sufficient 
revenue to pay all annual costs, including interest expense, and 
repayment of required investment within the allowable periods. Western 
will prepare a brochure providing detailed information on the rates to 
all interested parties. Western intends to conduct the public 
participation according to the minor rate adjustment process as defined 
in the Department of Energy's (DOE) Procedures for Public Participation 
in Power and Transmission Rate Adjustments and Extensions. Western 
expects the proposed rates to go into effect October 1, 2005, and 
remain in effect through September 30, 2010. Publication of this 
Federal Register notice begins the formal process for the proposed 
rates.

DATES: The consultation and comment period begins today and will end 
May 18, 2005. Western will accept written comments anytime during the 
consultation and comment period.

ADDRESSES: Send written comments to Robert J. Harris, Regional Manager, 
Upper Great Plains Region, Western Area Power Administration, 2900 4th 
Avenue North, Billings, MT 59101-1266, or e-mail at [email protected]. Western will post information about the rate process 
on its Web site at http://www.wapa.gov/ugp/rates/2005ISRateAdj/default.htm. Western will post official comments received via letter 
and e-mail to its Web site after the close of the comment period. 
Western must receive written comments by the end of the consultation 
and comment period to ensure they are considered in Western's decision 
process.

FOR FURTHER INFORMATION CONTACT: Mr. Jon R. Horst, Rates Manager, Upper 
Great Plains Region, Western Area Power Administration, 2900 4th Avenue 
North, Billings, MT 59101-1266, telephone (406) 247-7444, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved Rate 
Schedules UGP-FPT1, UGP-NFPT1, UGP-NT1, UGP-AS1, UGP-AS2, UGP-AS3, UGP-
AS4, UGP-AS5, and UGP-AS6 for P-SMBP--ED firm and non-firm transmission 
rates and ancillary services rates on August 1, 1998, Rate Order No. 
WAPA-79. The Federal Energy Regulatory Commission (Commission) 
confirmed and approved the rate schedules on November 25, 1998, under 
FERC Docket No. EF98-5031-000. These rate schedules were then extended 
through September 30, 2005, by Rate Order No. WAPA-100, which was 
confirmed and approved by the Commission on December 16, 2003, under 
FERC Docket No. EF03-5032-000. The rate schedules for Rate Order No. 
WAPA-79 and Rate Order No. WAPA-100 contain formulary rates that are 
recalculated yearly using the fixed charge rate methodology. The 
proposed formulary rates will continue to use the fixed charge rate 
methodology and will continue to be recalculated from yearly updated 
financial and load data. However, the Generator Step Up Transformers 
are proposed for removal from the transmission revenue requirement. 
After the approval of the original transmission and ancillary service 
rates for P-SMBP--ED the Commission decided that Generator Step Up 
Transformers should not be included in transmission rates for 
jurisdictional utilities. Consistent with Western's goal to observe 
Commission precedent to the extent consistent with its mission and 
permitted by law and

[[Page 20120]]

regulation, the transmission and ancillary services rates are being 
modified. The removal of the Generator Step Up Transformers will 
produce less than a 1-percent change in the annual revenues for the P-
SMBP--ED under Rate Order No. WAPA-100 based on the 2004-2005 rate 
calculation. Therefore, Western intends to conduct the public 
participation according to a minor rate adjustment process as defined 
in the DOE Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions. Western intends for the 
proposed rate to go into effect October 1, 2005, and remain in effect 
through September 30, 2010.
    Under Rate Schedule UGP-FPT1, the 2004-2005 existing rate for Long-
Term Firm and Short-Term Firm Point-to-Point Transmission Service is 
$2.72 per kilowattmonth (kWmonth). The proposed rate for Long-Term Firm 
and Short-Term Firm Point-to-Point Transmission Service is $2.69/
KWmonth. Under Rate Schedule UGP-NFPT1, the existing rate calculation 
for Non-Firm Point-to-Point Transmission Service is 3.73 mills per 
kilowatthour (kWh). The proposed rate for Non-Firm Point-to-Point 
Transmission Service is 3.68 mills per kWh. Under Rate Schedule UGP-NT1 
the existing annual revenue requirement for Network Integration 
Transmission Service is $128,017,923. The proposed annual revenue 
requirement for Network Integration Transmission service is 
$126,741,576.
    Under Rate Schedule UGP-AS1, the existing rate for Scheduling 
System Control and Dispatch (Scheduling and Dispatch) Service is 
$49.29/schedule/day. The proposed rate for Scheduling and Dispatch 
Service is $49.77/schedule/day. Under Rate Schedule UGP-AS2, the 
existing rate for Reactive Supply and Voltage Control from Generation 
Sources (Reactive) Service is $0.06/kWmonth. The propose rate for 
Reactive Service is $0.07/kWmonth. Under Rate Schedule UGP-AS3, the 
existing rate calculated for Regulation and Frequency Response 
(Regulation) Service is $0.04/kWmonth. The proposed rate for Regulation 
Service is $0.05/kWmonth. Under Rate Schedule UGP-AS4, there is no 
change in the rate for Energy Imbalance Service between the existing 
and the proposed rates. Under Rate Schedules UGP-AS5 and UGP-AS6, the 
existing rate calculated for Reserves is $0.11/kWmonth. The proposed 
rate for Reserves is $0.12/kWmonth.
    The impact to total transmission rates, including firm/non-firm/
network and ancillary services is less than a 1-percent change in 
annual revenues. The proposed rates will result in a decrease of 0.5765 
percent in annual revenues. The revenue requirements for the individual 
services and comparison values are outlined in the following table.

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                                                                                  Proposed
                          Service                           Existing revenue       revenue         Percentage
                                                               requirement       requirement         change
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Transmission..............................................      $128,017,923      $126,741,576           -0.9970
Scheduling and Dispatch...................................         3,373,281         3,406,102            0.9729
Reactive..................................................         2,736,253         3,065,568           12.0352
Reserves..................................................         1,895,268         2,009,276            6.0154
Regulation................................................         1,065,771         1,075,623            0.9243
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Legal Authority

    Because the proposed removal of Generator Step Up Transformers 
results in less than a 1-percent change in annual transmission revenues 
for the P-SMBP--ED under Rate Order WAPA-100, the proposed rates 
constitute a minor rate adjustment as defined by 10 CFR part 903. 
Consistent with these regulations, Western has elected not to hold 
either a public information forum or a public comment forum. After 
review and consideration of public comments related to the proposed 
rate extension, Western will submit proposed rates to the Deputy 
Secretary of Energy for approval on an interim basis.
    Western is establishing Integrated System Transmission and 
Ancillary Service Rates for P-SMBP--ED under the Department of Energy 
Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902 (ch. 
1093, 32 Stat. 388), as amended and supplemented by subsequent 
enactments, particularly section 9(c) of the Reclamation Project Act of 
1939 (43 U.S.C. 485h(c)) and section 5 of the Flood Control Act of 1944 
(16 U.S.C. 825s); and other acts specifically applicable to the 
projects involved.
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to Western's Administrator; (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to the Commission. Existing DOE procedures for 
public participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that Western initiates or uses to develop the proposed rates 
are available for inspection and copying at the Upper Great Plains 
Regional Office, located at 2900 4th Avenue North, Billings, Montana. 
Many of these documents and supporting information are also available 
on its Web site under the ``2005 IS Rate Adjustment'' section located 
at http://www.wapa.gov/ugp/rates/2005ISRateAdj/default.htm.

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to perform a regulatory flexibility analysis 
if a final rule is likely to have a significant economic impact on a 
substantial number of small entities and there is a legal requirement 
to issue a general notice of proposed rulemaking. This action does not 
require a regulatory flexibility analysis since it is a rulemaking of 
particular applicability involving rates or services applicable to 
public property.

Environmental Compliance

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

[[Page 20121]]

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

Small Business Regulatory Enforcement Fairness Act

    Western has determined that this rule is exempt from congressional 
notification requirements under 5 U.S.C. 801 because the action is a 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

    Dated: April 1, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05-7694 Filed 4-15-05; 8:45 am]
BILLING CODE 6450-01-P