[Federal Register Volume 70, Number 117 (Monday, June 20, 2005)]
[Notices]
[Pages 35424-35426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12072]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--Western Area Colorado Missouri Balancing 
Authority-Rate Order No. WAPA 118

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed rate.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
an adjustment for its Regulation and Frequency Response Service 
(Regulation) rate. The current rate, Rate Schedule No. L-AS3, will 
expire February 28, 2009.
    Western is undertaking this rate adjustment in response to 
anticipated load and resource growth and the corresponding impact on 
the Western Area Colorado Missouri (WACM) Balancing Authority (WACM 
Balancing Authority). Prior to April 1, 2005, the WACM Balancing 
Authority was known as the WACM Control Area.
    This proposed rate adjustment will ensure that users of Regulation 
service within the WACM Balancing Authority are appropriately assessed 
for their Regulation usage and that sufficient revenue is collected to 
cover provision of the service. Publication of this Federal Register 
notice begins the formal process for the proposed rate adjustment.

DATES: The consultation and comment period begins today and will end 
September 19, 2005. Western will present a detailed explanation of the 
proposed rate adjustment at the public information forum, to be held on 
the following date and time:
    1. July 27, 2005, 10 a.m. MDT, Denver, CO.
    Western will accept oral and written comments at the public comment 
forum, to be held on the following date and time:
    1. July 27, 2005, 1 p.m. MDT, Denver, CO.
    Western will accept written comments at any time during the 
consultation and comment period.

[[Page 35425]]


ADDRESSES: Send written comments to Edward F. Hulls, Operations 
Manager, Rocky Mountain Customer Service Region (RMR), Western Area 
Power Administration, P.O. Box 3700, Loveland, CO 80539-3003, e-mail 
[email protected]. Western will post information about the rate 
process on its Web site at http://www.wapa.gov/rm/reg_rate_information.htm. Western will post official comments received via 
letter and e-mail after the close of the consultation and comment 
period. Written comments must be received by the end of the 
consultation and comment period to ensure they are considered in 
Western's decision process. Western's public information forum and 
public comment forum will both be held at the following location:
    1. Radisson Hotel, Stapleton Plaza, 3333 Quebec Street, Denver, CO 
80207, (303) 321-3500.

FOR FURTHER INFORMATION CONTACT: Mr. Edward F. Hulls, Operations 
Manager, RMR, Western Area Power Administration, P.O. Box 3700, 
Loveland, CO 80539-3003, telephone (970) 461-7566, e-mail 
[email protected]; or Mr. Daniel T. Payton, Rates Manager, RMR, 
Western Area Power Administration, P.O. Box 3700, Loveland, CO 80539-
3003, telephone (970) 461-7442, e-mail [email protected].

SUPPLEMENTARY INFORMATION: The current Rate Schedule L-AS3 was approved 
by the Deputy Secretary of Energy as part of Rate Order No. WAPA-106 
(69 FR 1723-1738) on January 12, 2004, which placed formula rates for 
Loveland Area Projects (LAP) transmission and ancillary services into 
effect on an interim basis effective March 1, 2004. On January 31, 
2005, the Federal Energy Regulatory Commission (Commission) confirmed 
and approved the formula rates under FERC Docket No. EF04-5182-000 (110 
FERC 62,084). The approval of Rate Schedule L-AS3 covers the five (5) 
year period beginning on March 1, 2004, and ending on February 28, 
2009.
    The existing formula rate methodology for this rate will change 
under the proposed adjustment. Additionally, the proposed rate includes 
four different applications: (1) Load-based assessment; (2) generator-
based assessment; (3) load-based with non-dispatchable resource(s) in 
the generation portfolio; and (4) assessment of self-provision for 
Regulation service, as follows:

(1) Load-Based Assessment

    The first application of the Regulation rate will be assessed to 
entities serving load within the WACM Balancing Authority. This load-
based rate will be assessed on an entity's auxiliary load (total 
metered load less Federal entitlements).
    Western will periodically evaluate each entity's load and 
generation patterns and determine whether or not they are within normal 
limits (conforming vs. non-conforming). Based on these periodic 
evaluations, Western may adjust the Regulation charges for an entity.

(2) Generator-Based Assessment

    The second application of this Regulation rate will be assessed to 
entities that have a generating resource, but serve no load, within the 
WACM Balancing Authority.
    Based on the characteristics of the specific generator, Western 
will determine the amount of Regulation required for the resource. 
Based on Western's periodic evaluation of the resource's performance, 
the Regulation requirements for the resource may be adjusted.

(3) Load-Based Assessment With Non-Dispatchable Resource(s) In the 
Generation Portfolio

    The third application of this rate will be assessed much like the 
load-based assessment, but will apply specifically to entities that 
also have non-dispatchable resource(s) in their generation portfolio.
    In addition to the load-based charges outlined above, the entity 
will also be assessed the load-based Regulation charge for its non-
dispatchable resource(s) equal to or less than 10 percent of that 
entity's auxiliary load. For non-dispatchable resource(s) beyond 10 
percent of an entity's auxiliary load, Western will determine the 
amount of required Regulation and charge Western's pass-through cost 
for providing the service.

(4) Self-Provision Assessment

    The fourth application of this rate will allow for the self-
provision of Regulation service. The WACM Balancing Authority will 
allow entities serving load inside the Balancing Authority to self-
provide Regulation service for their load(s) and resource(s). These 
entities will be known as Sub-Balancing Authorities. The Sub-Balancing 
Authorities must meet all of the following criteria to be eligible for 
self-provision of Regulation service:

    1. Have a well-defined boundary with the WACM Balancing 
Authority equipped with revenue-quality metering accuracy as defined 
by the North American Electric Reliability Council (NERC), to 
include megawatt (MW) flow data availability at 1-minute or smaller 
intervals.
    2. Have Automatic Generation Control (AGC) capability.
    3. Demonstrate Regulation capability.
    4. Execute a contract with the Balancing Authority that requires 
the entity to:
    a. Provide all requested necessary data to the Balancing 
Authority
    b. Meet Sub-Balancing Authority Error Criteria (SBAEC)

Levels of Self-Provision

    The type of operating system that the entity has in place will 
determine the level of self-provision provided. A requesting Sub-
Balancing Authority must participate in regular performance testing and 
must provide sufficient documentation to receive full or partial credit 
for self-provision of Regulation service.
    Sub-Balancing Authorities with automatic control of generation in 
response to an internal error signal within the subject system may wish 
to provide for their own Regulation requirements. The internal error 
signal will consist of the measurement of a schedule across a known 
boundary, compared to the actual flow across the known boundary. For 
these entities, Western will require one of the following criteria:

    1. The Sub-Balancing Authority must be willing and able to 
respond to the WACM Balancing Authority's dynamic signal, 
proportional to the Sub-Balancing Authority's load within the 
Balancing Authority.
    2. The Sub-Balancing Authority must allow the WACM Balancing 
Authority direct access to pulse the Sub-Balancing Authority's 
regulating units, proportional to their share of the Regulation 
requirement from the Balancing Authority.
    3. The Sub-Balancing Authority and the WACM Balancing Authority 
may mutually agree to any other proven methodology and process.

    A Sub-Balancing Authority that does not have automatic control of 
the generation, with all control reactions to an error signal processed 
manually, may desire to self-provide Regulation service. This type of 
entity will have its Regulation service usage determined by an hourly 
calculation that measures the first derivative of the averaged 1-minute 
change in the Sub-Balancing Authority's error signal. The only 
exception will be those hours when there is a reserve activation 
response call in which the entity either receives or provides energy to 
the reserve group.

[[Page 35426]]

Contributions for Frequency Bias

    For those entities operating automated generation control in a tie-
line bias mode, subject to the requirements for Frequency Responsive 
Reserves (FRR), the WACM Balancing Authority intends to offset the 
calculated Regulation requirement by an amount equal to the weighted 
average hourly frequency multiplied by an entity's frequency response 
bias factor. This will eliminate any Regulation costs incurred due to 
the provision of frequency support to the interconnection.
    For a requesting entity to qualify for this accommodation, it must 
provide the WACM Balancing Authority with data required for physical 
confirmation of FRR participation. Minimum data that must be provided 
in real time includes the scan-by-scan information regarding individual 
unit capability, real MW output, and reactive megavolt-ampere output. 
Engineering data commonly used for system modeling must also be 
provided. Other data may be required and will be requested in writing. 
No credit(s) will be allowed for frequency bias contributions until the 
requested real-time and engineering data is provided to the WACM 
Balancing Authority.

Customer Accommodation

    Western will work with entities unwilling to take Regulation 
service from the WACM Balancing Authority, self-provide it, or provide 
it from a third party, to meter their resources and/or loads out of the 
Balancing Authority. Until such time as that meter reconfiguration is 
accomplished, the WACM Balancing Authority will charge the entity for 
Regulation service under the rate then in effect.

Legal Authority

    Western has determined that the proposed rate constitutes a minor 
rate adjustment as defined by 10 CFR part 903, and has established a 
90-day comment period. During that time, Western will hold both a 
public information forum and a public comment forum. After review of 
public comments, and possible amendments or adjustments, Western will 
recommend that the Deputy Secretary of Energy approve the proposed rate 
on an interim basis.
    Western is establishing this proposed rate adjustment for 
Regulation and Frequency Response Service 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 Federal Energy Regulatory 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, memoranda, e-mail, or 
other documents made or kept by Western for developing the proposed 
rate will be made available for inspection and copying at the Rocky 
Mountain Customer Service Region office located at 5555 East Crossroads 
Boulevard, Loveland, CO 80538.
    Western's Customer Rate Brochure for this rate adjustment is 
available on Western's Web site at http://www.wapa.gov/rm/reg_rate_information.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 parts 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.

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 28, 2005.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 05-12072 Filed 6-17-05; 8:45 am]
BILLING CODE 6450-01-P