[Federal Register Volume 73, Number 34 (Wednesday, February 20, 2008)]
[Notices]
[Pages 9308-9313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-3108]


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DEPARTMENT OF ENERGY


Notice of Interim Approval

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of rate extension.

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SUMMARY: The Deputy Secretary of Energy, confirmed and approved on an 
interim basis, Interim Rate Schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-
F, CC-1-G, CK-1-F, and CTV-1-F. The rate schedules were approved on an 
interim basis through September 30, 2008. The new rates take effect on 
February 25, 2008, and are subject to confirmation and approval on a 
final basis by the Federal Energy Regulatory Commission.

DATES: Approval of the rate schedules on an interim basis is effective 
February 25, 2008 through September 30, 2008.

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: On February 28, 2007, the Administrator of 
Southeastern Power Administration confirmed and approved Interim 
Wholesale Power Rate Schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-F, CC-1-
G, CK-1-F, and CTV-1-F for the period from February 25, 2007 to 
February 24, 2008. A copy of the February 28, 2007, Order is included 
in the Background Section. This order extends approval of these rate 
schedules to September 30, 2008.

    Dated: February 5, 2008.
Clay Sell,
Deputy Secretary of Energy.

 [Rate Order: No. SEPA-49]
 In the Matter of:
Southeastern Power Administration Cumberland System Rates;

Order Confirming and Approving
    Power Rates on an Interim Basis

    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern 
Power Administration (Southeastern) were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 0204-108, effective 
May 30, 1986, 51 FR 19744 (May 30, 1986), the Secretary of Energy 
delegated to Southeastern's Administrator the authority to develop 
power and transmission rates, delegated to the Under Secretary 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, approve, and 
place into effect on a final basis or to disapprove rates developed by 
the Administrator under the delegation. On December 6, 2001, the 
Secretary of Energy issued Delegation Order No. 00-037.00, granting the 
Deputy Secretary of Energy authority to confirm, approve, and place 
into effect Southeastern's rates on an interim basis. This rate order 
is issued by the Deputy Secretary pursuant to said notice.

Background

     The Federal Energy Regulatory Commission issued an order approving 
Rate Schedules CBR-1-E, CSI-1-E, CEK-1-E, CM-1-E, CC-1-F, CK-1-E and 
SJ-1-B for the sale of power from the Cumberland System August 2, 2004 
(108 FERC ] 62,113). These rates were approved for a period from 
October 1, 2003, to September 30, 2008. These rate schedules were 
predicated on a marketing policy that provides peaking capacity, along 
with 1500 hours of energy with each kilowatt of capacity, to customers 
outside the Tennessee Valley Authority (TVA) transmission system.

[[Page 9309]]

Due to restrictions on the operation of the Wolf Creek Project imposed 
by the U.S. Army Corps of Engineers as a precaution to prevent failure 
of the dam, Southeastern has not been able to provide peaking capacity 
to these customers. An interim operating plan for the Cumberland System 
has provided these customers with energy that does not include 
capacity. Because the rate design incorporated in the existing rate 
schedules recovered all costs from capacity, new rate schedules were 
necessary to recover costs under the interim operating plan. Interim 
Wholesale Rate Schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-F, CC-1-G, CK-
1-F, and CTV-1-F were approved by the Administrator of Southeastern 
Power Administration on February 28, 2007 for a period ending February 
24, 2008, unless the interim operating plan is revoked prior to such 
time.
    Order for information purposes as signed by Southeastern's 
Administrator on February 28, 2007:

[Rate Order: No. SEPA-47] Southeastern Power Administration--
Cumberland;

Order Confirming and Approving Power Rates for Short-Term Energy Sales 
on a Final 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 Southeastern 
Power Administration (Southeastern), were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated to the 
Administrator the authority to develop and place into effect on a final 
basis rates for short-term sales of capacity, energy, or transmission 
service. Existing DOE procedures for public participation in power rate 
adjustments (10 CFR part 903) were published on September 18, 1985.

Background

    Power from the Cumberland System is presently sold under wholesale 
rate schedules CBR-1-E, CSI-1-E, CEK-1-E, CM-1-E, CC-1-F, CK-1-E, CTV-
1-E, and SJ-1-B. These rate schedules were approved by FERC on August 
2, 2004 (108 FERC 62113). The existing rate schedules are predicated on 
a marketing policy that provides peaking capacity, along with 1500 
hours of energy with each kilowatt of capacity, to customers outside 
the Tennessee Valley Authority (TVA) transmission system. Due to 
restrictions on the operation of the Wolf Creek Project imposed by the 
U. S. Army Corps of Engineers as a precaution to prevent failure of the 
dam, Southeastern will not be able to provide peaking capacity to these 
customers. An interim operating plan for the Cumberland System will 
provide these customers with energy that does not include capacity. 
Because the rate design incorporated in the existing rate schedules 
recovers all costs from capacity, new rate schedules are necessary to 
recover costs under the interim operating plan. Interim wholesale rate 
schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-F, CC-1-G, CK-1-F, and CTV-1-
F are to replace the present rate schedules while the interim operating 
plan is in effect for the Cumberland System. Should the interim 
operating plan become unnecessary prior to September 30, 2008, rate 
schedules CBR-1-E, CSI-1-E, CEK-1-E, CM-1-E, CC-1-F, CK-1-E, CTV-1-E, 
and SJ-1-B will return to service.

Public Notice and Comment

    Existing DOE procedures for public participation in power rate 
adjustments are documented in 10 CFR part 903. Section 903.1(c) exempts 
short term sales of capacity, energy, and transmission from public 
participation.

Discussion

    The interim rate schedules are based upon a repayment study 
submitted to FERC October 7, 2003 in support of the existing rate 
schedules. An update of this repayment study submitted to the Deputy 
Secretary, Department of Energy, on March 28, 2006, demonstrated that 
rates were adequate to meet repayment criteria as required by existing 
law and DOE Procedure RA 6120.2. The Administrator hereby certifies 
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 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.

Order

     In view of the foregoing and pursuant to the authority delegated 
to me by the Secretary of Energy, I hereby confirm and approve, on a 
final basis, effective February 25, 2007, attached Interim Wholesale 
Power Rate Schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-F, CC-1-G, CK-1-F, 
and CTV-1-F. The Interim Rate Schedules shall remain in effect through 
February 24, 2008, unless the interim operating plan is revoked prior 
to such time.

Public Notice and Comment

    Notice of proposed rate extension was published in the Federal 
Register October 24, 2007, (72 FR 60356). Written comments were 
accepted on or before November 23, 2007. No written comments were 
received.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in December 2007, for the Cumberland 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 Order 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. (10 CFR 
part 1021, subpart D, app. B4.3)

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.

[[Page 9310]]

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 FERC 
for confirmation and approval on a final basis, ending no later than 
September 30, 2008.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective February 25, 2008, attached Interim Wholesale 
Power Rate Schedules CBR-1-F, CSI-1-F, CEK-1-F, CM-1-F, CC-1-G, CK-1-F, 
and CTV-1-F. The rate schedules shall remain in effect on an interim 
basis through September 30, 2008, unless such period is extended or 
until FERC confirms and approves them or substitute rate schedules on a 
final basis.

    Dated: February 5, 2008.
Clay Sell
Deputy Secretary of Energy.

Interim Wholesale Power Rate Schedule CBR-1-F

Availability

    This rate schedule shall be available to Big Rivers Electric 
Corporation and includes the City of Henderson, Kentucky (hereinafter 
called the Customer).

Applicability

    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The 
power shall be delivered at nominal voltages of 13,800 volts and 
161,000 volts to the transmission system of Big Rivers Electric 
Corporation.

Points of Delivery

    Capacity and energy delivered to the Customer will be delivered at 
points of interconnection of the Customer at the Barkley Project 
Switchyard, at a delivery point in the vicinity of the Paradise steam 
plant and at such other points of delivery as may hereafter be agreed 
upon by the Government and TVA.

Monthly Rate

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:

Demand Charge

    None.

Energy Charge

    12.16 mills per kilowatt-hour.

Transmission

    The Customer will pay a ratable percent listed below of the credit 
the Administrator of Southeastern Power Administration (Administrator) 
provides to the Tennessee Valley Authority (TVA) as consideration for 
delivering capacity and energy for the account of the Administrator to 
points of delivery of Other Customers or interconnection points of 
delivery with other electric systems for the benefit of Other 
Customers, as agreed by contract between the Administrator and TVA.

------------------------------------------------------------------------
                                                                 Percent
------------------------------------------------------------------------
Big Rivers Electric Corporation...............................    32.660
City of Henderson, Kentucky...................................     2.202
------------------------------------------------------------------------

Energy To Be Furnished by the Government

    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Billing Month

    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective, 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 TVA on its side of the delivery 
point.

Interim Wholesale Power Rate Schedule CSI-1-F

Availability

    This rate schedule shall be available to Southern Illinois Power 
Cooperative (hereinafter the Customer).

Applicability

    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The 
power shall be delivered at nominal voltages of 13,800 volts and 
161,000 volts to the transmission system of Big Rivers Electric 
Corporation.

Points of Delivery

    Capacity and energy delivered to the Customer will be delivered at 
points of interconnection of the Customer at the Barkley Project 
Switchyard, at a delivery point in the vicinity of the Paradise steam 
plant and at such other points of delivery as may hereafter be agreed 
upon by the Government and TVA.

Monthly Rate

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:

Demand Charge

    None.

Energy Charge

    12.16 mills per kilowatt-hour.

Transmission Charge

    The Customer will pay 5.138 percent of the credit the Administrator 
of Southeastern Power Administration (Administrator) provides to the 
Tennessee Valley Authority (TVA) as consideration for delivering 
capacity and energy for the account of the Administrator to points of 
delivery of Other Customers or interconnection points of delivery with 
other electric systems for the benefit of Other Customers, as agreed by 
contract between the Administrator and TVA.

Energy To Be Furnished by the Government

    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Billing Month

    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is

[[Page 9311]]

currently effective, on the last day of each calendar month.

Interim Wholesale Power Rate Schedule CEK-1-F

Availability

    This rate schedule shall be available to East Kentucky Power 
Cooperative (hereinafter called the Customer).

Applicability

    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and power available from the Laurel 
Project and sold in wholesale quantities.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The 
power shall be delivered at nominal voltages of 161,000 volts to the 
transmission systems of the Customer.

Points of Delivery

    The points of delivery will be the 161,000 volt bus of the Wolf 
Creek Power Plant and the 161,000 volt bus of the Laurel Project. Other 
points of delivery may be as agreed upon.

Monthly Rate

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:

Demand Charge

    None.

Energy Charge

    12.16 mills per kilowatt-hour.

Transmission Charge

    The Customer will pay 31.192 percent of the credit the 
Administrator of Southeastern Power Administration (Administrator) 
provides to the Tennessee Valley Authority (TVA) as consideration for 
delivering capacity and energy for the account of the Administrator to 
points of delivery of Other Customers or interconnection points of 
delivery with other electric systems for the benefit of Other 
Customers, as agreed by contract between the Administrator and TVA.

Energy To Be Furnished by the Government

    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Billing Month

    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective, 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 TVA on its side of the delivery 
point.

Interim Wholesale Power Rate Schedule CM-1-F

Availability

    This rate schedule shall be available to the South Mississippi 
Electric Power Association, Municipal Energy Agency of Mississippi, and 
Mississippi Delta Energy Agency (hereinafter called the Customers).

Applicability

    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The 
power shall be delivered at nominal voltages of 161,000 volts to the 
transmission systems of Mississippi Power and Light.

Points of Delivery

    The points of delivery will be at interconnection points of the 
Tennessee Valley Authority system and the Mississippi Power and Light 
system. Other points of delivery may be as agreed upon.

Monthly Rate

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:

Demand Charge

    None.

Energy Charge

    12.16 mills per kilowatt-hour.

Transmission Charge

    The Customer will pay a ratable percent listed below of the credit 
the Administrator of Southeastern Power Administration (Administrator) 
provides to the Tennessee Valley Authority (TVA) as consideration for 
delivering capacity and energy for the account of the Administrator to 
points of delivery of Other Customers or interconnection points of 
delivery with other electric systems for the benefit of Other 
Customers, as agreed by contract between the Administrator and TVA.

------------------------------------------------------------------------
                                                                 Percent
------------------------------------------------------------------------
Mississippi Delta Energy Agency...............................     2.058
Municipal Energy Agency of Mississippi........................     3.447
South Mississippi EPA.........................................     9.358
------------------------------------------------------------------------

Energy To Be Furnished by the Government

    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U. S. Army Corps of 
Engineers.

Billing Month

    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective on the last day 
of each calendar month.

Interim Wholesale Power Rate Schedule CC-1-G

Availability

    This rate schedule shall be available to public bodies and 
cooperatives served through the facilities of Carolina Power & Light 
Company, Western Division (hereinafter called the Customers).

Applicability

    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The 
power shall be delivered at nominal voltages of 161,000 volts to the 
transmission system of Carolina Power & Light Company, Western 
Division.

[[Page 9312]]

Points of Delivery

    The points of delivery will be at interconnecting points of the 
Tennessee Valley Authority system and the Carolina Power & Light 
Company, Western Division system. Other points of delivery may be as 
agreed upon.

Monthly Rate

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:

Demand Charge

    None.

Energy Charge

    12.94 mills per kilowatt-hour.

TVA Transmission Charge

    The Customer will pay a ratable percent listed below of the credit 
the Administrator of Southeastern Power Administration (Administrator) 
provides to the Tennessee Valley Authority (TVA) as consideration for 
delivering capacity and energy for the account of the Administrator to 
points of delivery of Other Customers or interconnection points of 
delivery with other electric systems for the benefit of Other 
Customers, as agreed by contract between the Administrator and TVA.

------------------------------------------------------------------------
                                                                 Percent
------------------------------------------------------------------------
French Broad EMC..............................................     1.713
Haywood EMC...................................................     0.501
Town of Waynesville...........................................     0.355
------------------------------------------------------------------------

CP&L Transmission Charge

    The Customer will way a ratable percent listed below of the charge 
for transmission service furnished by Carolina Power & Light Company, 
Western Division.

------------------------------------------------------------------------
                                                                 Percent
------------------------------------------------------------------------
French Broad EMC..............................................    66.667
Haywood EMC...................................................    19.512
Town of Waynesville...........................................    13.821
------------------------------------------------------------------------

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 
Carolina Power & Light Company (less applicable losses). The Customer's 
contract demand and accompanying energy allocation will be divided pro 
rata among its individual delivery points served from the Carolina 
Power & Light Company's, Western Division transmission system.

Billing Month

    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective, on the last 
day of each calendar month.

Interim Wholesale Power Rate Schedule CK-1-F

Availability

    This rate schedule shall be available to public bodies served 
through the facilities of Kentucky Utilities Company, (hereinafter 
called the Customers.)

Applicability

    This rate schedule shall be applicable to electric capacity and 
energy available from the Dale Hollow, Center Hill, Wolf Creek, 
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull 
Projects (all of such projects being hereinafter called collectively 
the ``Cumberland Projects'') and sold in wholesale quantities.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The 
power shall be delivered at nominal voltages of 161,000 volts to the 
transmission systems of Kentucky Utilities Company.

Points of Delivery

    The points of delivery will be at interconnecting points between 
the Tennessee Valley Authority system and the Kentucky Utilities 
Company system. Other points of delivery may be as agreed upon.

Monthly Rate

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:

Demand Charge

    None.

Energy Charge

    12.16 mills per kilowatt-hour.

Transmission Charge

    The Customer will pay a ratable percent listed below of the credit 
the Administrator of Southeastern Power Administration (Administrator) 
provides to the Tennessee Valley Authority (TVA) as consideration for 
delivering capacity and energy for the account of the Administrator to 
points of delivery of Other Customers or interconnection points of 
delivery with other electric systems for the benefit of Other 
Customers, as agreed by contract between the Administrator and TVA.

------------------------------------------------------------------------
                                                                 Percent
------------------------------------------------------------------------
City of Barbourville..........................................     0.404
City of Bardstown.............................................     0.412
City of Bardwell..............................................     0.099
City of Benham................................................     0.046
City of Corbin................................................     0.477
City of Falmouth..............................................     0.108
City of Frankfort.............................................     2.866
City of Madisonville..........................................     1.432
City of Nicholasville.........................................     0.469
City of Owensboro.............................................     4.587
City of Paris.................................................     0.250
City of Providence............................................     0.226
------------------------------------------------------------------------

Energy To Be Furnished by the Government

    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U.S. Army Corps of 
Engineers.

Billing Month

    The billing month for power sold under this schedule shall end at 
2400 hours CDT or CST, whichever is currently effective on the last day 
of each calendar month.

Interim Wholesale Power Rate Schedule CTV-1-F

Availability

    This rate schedule shall be available to the Tennessee Valley 
Authority (hereinafter called TVA).

Applicability

    This rate schedule shall be applicable to electric capacity and 
energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old 
Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects 
(all of such projects being hereafter called collectively the 
``Cumberland Projects'') and the Laurel Project sold under agreement 
between the Department of Energy and TVA.

Character of Service

    The electric capacity and energy supplied hereunder will be three-
phase alternating current at a frequency of approximately 60 Hertz at 
the outgoing terminals of the Cumberland Projects' switchyards.

Monthly Rates

    The monthly rate for capacity and energy sold under this rate 
schedule shall be:

Demand Charge

    None.

Energy Charge

    11.92 mills per kilowatt-hour.

[[Page 9313]]

Energy To Be Made Available

    The Customer will receive a ratable share of the energy made 
available by the Nashville District of the U.S. Army Corps of 
Engineers.

Billing Month

    The billing month for capacity and energy sold under this schedule 
shall end at 2400 hours CDT or CST, whichever is currently effective, 
on the last day of each calendar month.

Power Factor

    TVA shall take capacity and energy from the Department of Energy at 
such power factor as will best serve TVA's system from time to time; 
provided, that TVA shall not impose a power factor of less than .85 
lagging on the Department of Energy's facilities which requires 
operation contrary to good operating practice or results in overload or 
impairment of such facilities.

 [FR Doc. E8-3108 Filed 2-19-08; 8:45 am]
BILLING CODE 6450-01-P