[Federal Register Volume 73, Number 161 (Tuesday, August 19, 2008)]
[Notices]
[Pages 48381-48382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19153]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Valley Project--Rate Order No. WAPA-139

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Order Temporarily Extending Formula Rates for Power, 
Transmission, and Ancillary Services.

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SUMMARY: This action is to temporarily extend the existing formula 
rates for power, transmission, and ancillary services for the Central 
Valley Project (CVP), transmission service on the California-Oregon 
Transmission Project (COTP), transmission service on the Pacific 
Alternating Current Intertie (PACI), and third-party transmission 
service through September 30, 2011. This action also extends the 
Western Area Power Administration's (Western) recovery methodology of 
the Path 15 revenue requirement through September 30, 2011. Without 
this extension, formula rates for power, transmission, and ancillary 
services for the CVP, transmission service on the COTP, transmission 
service on the PACI, and third-party transmission service will expire 
September 30, 2009.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas R. Boyko, Regional Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4418, e-mail [email protected] or Mr. Charles J. Faust, Rates Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4468, e-mail [email protected].

SUPPLEMENTARY INFORMATION: 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 the Administrator of the 
Western Area Power Administration, (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 (FERC).
    The existing formula rates contained under Rate Order No. WAPA-
115\1\ became effective on January 1, 2005, and were approved for 4 
years and 9 months through September 30, 2009. Subsequent to Rate Order 
No. WAPA-115, Western completed a minor rate adjustment, Rate Order No. 
WAPA-128,\2\ which removed the reactive power costs from the 
Transmission Revenue Requirement and recovered these costs in the Power 
Revenue Requirement. This rate adjustment modified the formula rates 
associated with power and transmission service for the CVP and 
transmission service on the COTP and PACI. WAPA-128 became effective on 
September 1, 2006, and was approved for a period of 3 years and 1 
month. Both rate orders (WAPA-115 and WAPA-128) expire on September 30, 
2009. Western is extending the existing formula rates for power, 
transmission, and ancillary services on the CVP, transmission service 
on the COTP, transmission service on the PACI, third-party transmission 
service, and the Path 15 revenue requirement methodology in accordance 
with 10 CFR part 903.23(b). Western seeks this extension to provide 
sufficient time for an informal rate process which will allow Western 
to meet and collaborate with its customers on the development of rates 
to replace the current rates. This extension allows Western and its 
customers the opportunity to evaluate the impacts of proposed market 
and industry initiatives, such as the California Independent System 
Operator's (CAISO) Market Redesign and Technology Upgrade (MRTU) and 
FERC Orders 890 and 890A, on the existing rate designs. The existing 
formula rate methodology collects annual revenue sufficient to recover 
annual expenses (including interest) and capital requirements, thus 
ensuring repayment of the project within the cost recovery criteria set 
forth in DOE Order RA 6120.2. This extension will permit a concurrent 
public process and rate approval period for the formula rates for 
power, transmission, and ancillary services for the CVP, transmission 
service on the COTP, transmission service on the PACI, and third-party 
transmission service through September 30, 2011. Upon its approval, 
Rate Order No. WAPA-115 and Rate Order No. WAPA-128 will be extended 
under Rate Order No. WAPA-139.
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    \1\ WAPA-115 was approved by FERC on a final basis on October 
11, 2005, in Docket No. EF05-5011-000 (113 FERC ] 61,026).
    \2\ WAPA-128 was approved by FERC on a final basis on January 
25, 2007, in Docket No. EF06-5011-000 (118 FERC ] 61,052 (2007)).
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    Western did not have a consultation and comment period and did not 
hold public information and comment forums which, in accordance with 10 
CFR part 903.23(b), are not required. Following review of Western's 
proposal within the DOE, I hereby approve Rate Order No. WAPA-139 which 
extends the existing formula rates for the power, transmission, and 
ancillary services for the CVP, transmission service for the COTP, 
transmission service for the PACI, and third-party transmission service 
through September 30, 2011. This approval also extends Western's 
recovery of the Path 15 revenue requirement through the same time 
period.

    Dated: August 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.

Department of Energy

Deputy Secretary

    Rate Order No. WAPA-139.
    In the Matter of: Western Area Power Administration Rate 
Extension for the Central Valley Project, the California-Oregon 
Transmission Project, the Pacific Alternating Current Intertie, and 
Third-Party

[[Page 48382]]

Transmission. Extend Path 15 Revenue Requirement Methodology

Order Confirming and Approving a Temporary Extension of the Formula 
Rates for Power, Transmission, and Ancillary Services for the Central 
Valley Project, Transmission Service for the California-Oregon 
Transmission Project, Transmission Service for the Pacific Alternating 
Current Intertie, and Third-Party Transmission Service

    The formula rates for power, transmission, and ancillary 
services were established following section 302 of the Department of 
Energy (DOE) Organization Act (42 U.S.C. 7152). This Act transferred 
to and vested in the Secretary of Energy the power marketing 
functions of the Secretary of the Department of the Interior and the 
Bureau of Reclamation under the Reclamation Act of 1902 (ch. 1093, 
32 Stat. 388), as amended and supplemented by subsequent laws, 
particularly section 9(c) of the Reclamation Project Act of 1939 (43 
U.S.C. 485h(c)), and other Acts that specifically apply to the 
project system 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 the Administrator of the Western 
Area Power Administration (Western), (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 
(FERC).

Background

    The existing formula rates for custom product power, ancillary 
services, and third-party transmission service contained in Rate 
Order No. WAPA-115\1\ were approved for 4 years and 9 months and are 
effective through September 30, 2009. The existing formula rates for 
power and transmission service on the Central Valley Project (CVP), 
transmission service on the California-Oregon Transmission Project 
(COTP), and the Pacific-Alternating Current Intertie (PACI) 
contained in Rate Order No. WAPA-128 \2\ were approved for 3 years 
and 1 month and are effective through September 30, 2009.
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    \1\ Rate Order No. WAPA-115, 69 FR 70510 (December 6, 2004). 
Approved by FERC on October 11, 2005 (113 Commission ] 61,026).
    \2\ Rate Order No. WAPA-128, 71 FR 45821 (August 10, 2006). 
Approved by FERC on January 25, 2007 (118 Commission ] 61,052).
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Discussion

    Western is entering a public process to modify the existing 
formula rates for power, transmission, and ancillary services for 
the CVP, transmission service on the COTP, transmission service on 
the PACI, and third-party transmission service. This public process 
will also address Western's recovery of the Path 15 revenue 
requirement. Western seeks this extension to provide more time for 
an informal rate process which will allow Western to meet and 
collaborate with its customers on the development of rates to 
replace the current rates. This extension allows Western and its 
customers the opportunity to evaluate the impacts of proposed market 
and industry initiatives, such as the California Independent System 
Operator's Market Redesign and Technology Upgrade and FERC Orders 
890 and 890A, on the existing rate designs. The existing power, 
transmission, and ancillary services formula rate methodologies 
collect annual revenues sufficient to recover annual expenses, 
including interest and capital requirements, thus ensuring repayment 
of the project within the cost recovery criteria set forth in DOE 
Order RA 6120.2. As permitted by 10 CFR part 903.23(b), Western did 
not have an advanced notice and comment period and did not hold 
public information and comment forums on the temporary extension of 
the formula rates for power, transmission, and ancillary services 
for the CVP, transmission service on the COTP, transmission service 
on the PACI, and third-party transmission service.

Order

    In view of the above and under the authority delegated to me, I 
hereby extend for a period effective from October 1, 2009, through 
September 30, 2011, the existing formula rates under Rate Schedules 
CV-F12, CPP-1, CV-T2, CV-NWT4, PACI-T2, COTP-T2, CV-TPT6, CV-SPR3, 
CV-SUR3, CV-RFS3, CV-EID3 for the Central Valley and the California-
Oregon Transmission Projects, and the Pacific-Alternating Current 
Intertie of the Western Area Power Administration.

    Dated: August 12, 2008.

Jeffrey F. Kupfer,

Acting Deputy Secretary.
 [FR Doc. E8-19153 Filed 8-18-08; 8:45 am]
BILLING CODE 6450-01-P