[Federal Register Volume 72, Number 186 (Wednesday, September 26, 2007)]
[Notices]
[Pages 54646-54648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18929]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

 [Docket No. EF07-2021-000]


United States Department of Energy-Bonneville Power 
Administration; Order Approving Rates on an Interim Basis and Providing 
Opportunity for Additional Comments

Issued September 20, 2007.
Before Commissioners: Joseph T. Kelliher, Chairman; Suedeen G. 
Kelly, Marc Spitzer, Philip D. Moeller, and Jon Wellinghoff


    1. In this order, we approve the Bonneville Power Administration's 
(Bonneville) proposed 2008 Transmission and Ancillary Services (2008 
Transmission) rates on an interim basis, pending our full review. We 
also provide an additional period of time for the parties to file 
comments.

Background

    2. On May 22, 2007, Bonneville, in accordance with the Pacific 
Northwest Electric Power Planning and Conservation Act (Northwest Power 
Act),\1\ and Subpart B of Part 300 of the

[[Page 54647]]

Commission's regulations,\2\ filed with the Commission its proposed 
2008 Transmission rates.\3\ Bonneville also seeks a finding by the 
Commission that the proposed 2008 Transmission rates associated with 
service provided under its open access transmission tariff (OATT) \4\ 
satisfy the Commission's comparability standards applicable to non-
public utilities pursuant to the reciprocity conditions of Order No. 
888.\5\ Bonneville states that the governing statute and case law do 
not provide the Commission latitude to review these rates in the same 
manner as the Federal Power Act (FPA) \6\ provides for public 
utilities. Rather, according to Bonneville, if it has satisfied the 
standards of the Northwest Power Act,\7\ the Commission is required to 
confirm and approve these rates.\8\
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    \1\ 16 U.S.C. 839e(a)(2), 839e(i)(6) (2000).
    \2\ 18 CFR part 300 (2007).
    \3\ The proposed transmission rate schedules for which 
Bonneville seeks approval for the two year period ending September 
30, 2009 include: FPT-08.1 (Formula Power Transmission); FPT-08.3 
(Formula Power Transmission); IR-08 (Integration of Resources); NT-
08 (Network Integration); PTP-08 (Point-to-Point Firm Transmission); 
IS-08 (Southern Intertie Transmission); IM-08 (Montana Intertie 
Transmission); UFT-08 (Use-of-Facilities Transmission); AF-08 
(Advance Funding); TGT-08 (Townsend-Garrison Transmission); IE-08 
(Eastern Intertie); ACS-08 (Ancillary Services and Control Areas 
Services); and GRSPs (General Rate Schedule Provisions for 
Transmission and Ancillary Services).
    \4\ The proposed rate schedules associated with Bonneville's 
OATT are: Network Integration (NT-08), Point-to-Point (PTP-08), 
Southern Intertie (IS-08), Montana Intertie (IM-08), Use-Of-
Facilities (UFT-08), Advance Funding (AF-08), Ancillary Services 
(ACS-08), and GRSPs.
    \5\ See Promoting Wholesale Competition Through Open Access Non-
discriminatory Transmission Services by Public Utilities and 
Recovery of Stranded Costs by Public Utilities and Transmitting 
Utilities, Order No. 888, FERC Stats. & Regs. ] 31,036 (1996), order 
on reh'g, Order No. 888-A, FERC Stats. & Regs. ] 31,048 (1997), 
order on reh'g, Order No. 888-B, 81 FERC ] 61,248 (1997), order on 
reh'g, Order No. 888-C, 82 FERC ] 61,046 (1998), aff'd in relevant 
part sub nom. Transmission Access Policy Study Group v. FERC, 225 
F.3d 667 (D.C. Cir. 2000), aff'd sub nom. New York v. FERC, 535 U.S. 
1 (2002).
    \6\ 16 U.S.C. 824 et seq. (2000). Bonneville also must comply 
with the financial, accounting, and ratemaking requirements in 
Department of Energy Order No. RA 6120.2.
    \7\ 16 U.S.C. 839e(a)(2), 839e(i)(6) (2000).
    \8\ Central Lincoln Peoples' Utility District v. Johnson, 735 
F.2d 1101, 1110 (9th Cir. 1984) (holding that the Northwest Power 
Act ``remove[s] FERC from actual ratemaking * * * and limit[s] 
FERC's role to financial oversight of the regional rates'').
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    3. Notice of Bonneville's filing was published in the Federal 
Register, with protests and interventions due on or before June 21, 
2007.\9\ Timely motions to intervene were filed by Avista Corporation, 
PacifiCorp, Portland General Electric Company, Idaho Power Company, 
Industrial Customers of Northwest Utilities, Powerex Corp., Public 
Power Council, and Puget Sound Energy, Inc., raising no substantive 
issues.
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    \9\ 72 FR 32,633 (2007).
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    4. In addition, the Electric Power Supply Association (EPSA) and 
the Northwest and Intermountain Power Producers Coalition (NIPPC) filed 
a joint motion to intervene and protest. LS Power Associates, L.P. (LS 
Power) filed a timely motion to intervene and protest. EPSA, NIPPC and 
LS Power challenge Bonneville's plan to no longer compensate 
unaffiliated generators within its control area for generation-supplied 
reactive power service, as unduly discriminatory and in violation of 
Commission policy. Bonneville filed an answer in response to the 
protests.

Discussion

Procedural Matters

    5. Pursuant to Rule 214 of the Commission's Rules of Practice and 
Procedure, 18 CFR 385.214 (2007), the timely, unopposed motions to 
intervene serve to make the entities that filed them parties to this 
proceeding. Rule 213(a)(2) of the Commission's Rules of Practice and 
Procedure, 18 CFR 385.213(a)(2) (2007), prohibits an answer to a 
protest unless otherwise ordered by the decisional authority. We will 
accept Bonneville's answer because it has provided information that 
assisted us in our decision-making process.

Standard of Review

    6. Under the Northwest Power Act, the Commission's review of 
Bonneville's transmission rates is limited to determining whether 
Bonneville's proposed rates meet the three specific requirements of 
section 7(a)(2):
    (A) They must be sufficient to assure repayment of the Federal 
investment in the Federal Columbia River Power System over a reasonable 
number of years after first meeting the Administrator's other costs;
    (B) They must be based upon the Administrator's total system costs; 
and
    (C) Insofar as transmission rates are concerned, they must 
equitably allocate the costs of the Federal transmission system between 
Federal and non-Federal power.\10\
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    \10\ See 16 U.S.C. 839e(a)(2) (2000).
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    7. Unlike the Commission's statutory authority under the FPA, the 
Commission's authority under section 7(a)(2) of the Northwest Power Act 
does not include the power to modify the rates. The responsibility for 
developing rates in the first instance is vested with Bonneville's 
Administrator. The rates are then submitted to the Commission for 
approval or disapproval. In this regard, the Commission's role can be 
viewed as an appellate one: To affirm or remand the rates submitted to 
it for review.\11\
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    \11\ See United States Department of Energy--Bonneville Power 
Administration, 67 FERC ] 61,351 at 62,216-17 (1994); see also, 
e.g., Aluminum Company of America v. Bonneville Power 
Administration, 903 F.2d 585, 592-93 (9th Cir. 1989).
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    8. Moreover, review at this interim stage is further limited. In 
view of the volume and complexity of a Bonneville rate application, 
such as the one now before the Commission in this filing, and the 
limited period in advance of the requested effective date in which to 
review the application,\12\ the Commission generally defers resolution 
of issues on the merits until an order on final confirmation and 
approval. Thus, proposed rates, if not patently deficient, generally 
are approved on an interim basis and the parties are afforded an 
additional opportunity in which to raise issues with regard to 
Bonneville's filing.\13\
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    \12\ See 18 CFR 300.10(a)(3)(ii) (2007).
    \13\ See, e.g., United States Department of Energy--Bonneville 
Power Administration, 64 FERC ] 61,375 at 63,606 (1993); United 
States Department of Energy--Bonneville Power Administration, 40 
FERC ] 61,351 at 62,059-60 (1987).
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Interim Approval

    9. The Commission declines at this time to grant final confirmation 
and approval of Bonneville's proposed 2008 Transmission rates. The 
Commission's preliminary review nevertheless indicates that 
Bonneville's 2008 Transmission rates appear to meet the statutory 
standards and the minimum threshold filing requirements of Part 300 of 
the Commission's regulations.\14\ Moreover, the Commission's 
preliminary review of Bonneville's submittal indicates that it does not 
contain any patent deficiencies. The proposed rates, therefore, will be 
approved on an interim basis pending our full review for final 
approval. We note, as well, that no one will be harmed by this decision 
because interim approval allows Bonneville's rates to go into effect 
subject to refund with interest; the Commission may order refunds with 
interest if the Commission later determines in its final decision not 
to approve the rates.\15\ The Commission will address concerns raised 
by protesters in the final decision.
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    \14\ See, e.g., United States Department of Energy--Bonneville 
Power Administration, 105 FERC ] 61,006 at P 13-14 (2003); United 
States Department of Energy--Bonneville Power Administration, 96 
FERC ] 61,360 at 62,358 (2001).
    \15\ 18 CFR 300.20(c) (2007).

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[[Page 54648]]

    10. In addition, we will provide an additional period of time for 
parties to file comments and reply comments on issues related to final 
confirmation and approval of Bonneville's 2008 Transmission rates. This 
will ensure that the record in this proceeding is complete and fully 
developed.
    The Commission Orders:
    (A) Interim approval of Bonneville's proposed 2008 Transmission 
rates is hereby granted, to become effective on October 1, 2007, 
subject to refund with interest as set forth in section 300.20(c) of 
the Commission's regulations, 18 CFR 300.20(c) (2007), pending final 
action and either approval or disapproval.
    (B) Within thirty (30) days of the date of this order, parties who 
wish to do so may file additional comments regarding final confirmation 
and approval of Bonneville's proposed rates. Parties who wish to do so 
may file reply comments within twenty (20) days thereafter.
    (C) The Secretary shall promptly publish this order in the Federal 
Register.

    By the Commission.
Nathaniel J. Davis, Sr.,
Acting Deputy Secretary.
[FR Doc. E7-18929 Filed 9-25-07; 8:45 am]
BILLING CODE 6717-01-P