[Federal Register Volume 73, Number 184 (Monday, September 22, 2008)]
[Notices]
[Pages 54588-54594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22096]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project-Rate Order No. WAPA-138

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Order Concerning Firm Electric and Transmission 
Service Formula Rates.

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SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate 
Order No. WAPA-138 and Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-
NFT7 placing firm electric and transmission service formula rates for 
the Parker-Davis Project (P-DP) of the Western Area Power 
Administration (Western) into effect on an interim basis. The 
provisional rates will be in effect until the Federal Energy Regulatory 
Commission (FERC) confirms, approves, and places them into effect on a 
final basis or until they are replaced by other rates. The provisional 
formula rates will provide sufficient revenue to pay all annual costs, 
including interest expense, and repayment of investment, within the 
allowable periods.

DATES: Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 will be 
placed into effect on an interim basis on the first day of the first 
full billing period beginning on or after October 1, 2008, and will be 
in effect until FERC confirms, approves, and places the rate schedules 
in effect on a final basis through September 30, 2013, or until the 
rate schedule is superseded.

FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Regional 
Manager, Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2453, 
[email protected], or Mr. Jack Murray, Rates Manager, Desert Southwest 
Customer Service Region, Western Area Power Administration, P.O. Box 
6457, Phoenix, AZ 85005-6457, (602) 605-2442, [email protected].

SUPPLEMENTARY INFORMATION: Rate Schedules PD-F6, PD-FT6, PD-FCT6, and 
PD-NFT6 were approved under Rate Order No. WAPA-75 for the period 
beginning November 1, 1997, and ending September 30, 2002.\1\ These 
rate schedules were extended through September 30, 2004, by the 
approval of Rate Order No. WAPA-98 on September 13, 2002.\2\ These rate 
schedules were extended again through September 30, 2006, by the 
approval of Rate Order No. WAPA-113 approved on September 2, 2004.\3\ 
These rate schedules were extended again through September 30, 2008, by 
Rate Order No. WAPA-131 approved on September 22, 2006.\4\
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    \1\ WAPA-75 was approved by the Deputy Secretary of Energy on 
November 18, 1997 (62 FR 63150), and confirmed and approved by FERC 
on a final basis on March 10, 1998, in Docket No. EF98-5041-000 (82 
FERC 62164).
    \2\ WAPA-98 was approved by the Secretary of Energy on September 
13, 2002 (67 FR 60655), filed with FERC for informational purposes 
only, and docketed by FERC on September 24, 2002, in Docket No. 
EF02-5041-000.
    \3\ WAPA-113 was approved by the Deputy Secretary of Energy on 
September 2, 2004 (69 FR 55429), filed with FERC for informational 
purposes only, and docketed by FERC on September 3, 2004, in Docket 
No. EF04-5042-000.
    \4\ WAPA-131 was approved by the Deputy Secretary of Energy on 
September 22, 2006 (71 FR 57941), and filed with FERC for 
informational purposes only, and docketed by FERC on September 22, 
2006, in Docket No. EF06-5042-000.
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    Rate Schedule PD-F6 for firm electric service is being superseded 
by Rate Schedule PD-F7. Under Rate Schedule PD-F7, the capacity rate is 
$17.45 per kilowattyear (kWyear), and the energy rate is 3.32 mills per 
kilowatthour (mills/kWh). The provisional rates in Rate Schedule PD-F7 
equal the existing rates under Rate Schedule PD-F6.
    Rate Schedules PD-FT6 and PD-FCT6 for firm point-to-point 
transmission service and firm transmission of Salt Lake City Area/
Integrated Projects power are being superseded by Rate Schedules PD-FT7 
and PD-FCT7. The provisional transmission rates under Rate Schedules 
PD-FT7 and PD-FCT7 are $12.96/kWyear, which is equal to the existing 
rates under Rate Schedules PD-FT6 and PD-FCT6.
    Rate Schedule PD-NFT6 for nonfirm transmission service is being 
superseded by Rate Schedule PD-NFT7. Under Rate Schedule PD-NFT6, the 
existing nonfirm transmission rate is 2.47 mills/kWh. The provisional 
nonfirm transmission rate under Rate Schedule PD-NFT7 is 1.48 mills/
kWh. A change to the existing formula for calculating the nonfirm 
transmission rate resulted in a 40 percent decrease when compared to 
the existing rate. The modification to the nonfirm transmission rate 
formula ensures that the nonfirm transmission rate will not exceed the 
firm transmission rate.
    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 FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985.
    Under Delegation Order Nos. 00-037.00 and 00-001.00C, 10 CFR part 
903, and 18 CFR part 300, I hereby confirm, approve, and place Rate 
Order No. WAPA-138, the proposed P-DP firm electric and transmission 
service formula rates, into effect on an interim basis. The new Rate 
Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 will be promptly 
submitted to FERC for confirmation and approval on a final basis.


[[Page 54589]]


    Dated: September 12, 2008.
Jeffery F. Kupfer,
Acting Deputy Secretary.

Department of Energy

Deputy Secretary

Rate Order No. WAPA-138.

In the matter of: Western Area Power Administration Rate Adjustment for 
the Parker-Davis Project Firm Electric and Transmission Service Formula 
Rates: Order Confirming, Approving, and Placing the Parker-Davis 
Project Firm Electric and Transmission Service Formula Rates Into 
Effect on an Interim Basis

    These rates were established in accordance with 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 
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 
(FERC). Existing DOE procedures for public participation in power rate 
adjustments (10 CFR part 903) were published on September 18, 1985.

Acronyms and Definitions

    As used in this Rate Order, the following acronyms and definitions 
apply:
Administrator: The Administrator of the Western Area Power 
Administration.
Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment. It is expressed in kilowatts.
Capacity Rate: The rate which sets forth the charges for capacity. It 
is expressed in dollars per killowattyear and applied to each kW of 
reservation.
CME: Capitalized Moveable Equipment.
Customer: An entity with a contract that is receiving firm electric 
service or transmission service from the Parker-Davis Project.
DOE: United States Department of Energy.
DOE Order RA 6120.2: An order outlining power marketing administration 
financial reporting and ratemaking procedures.
Energy: Measured in terms of the work it is capable of doing over a 
period of time. It is expressed in kilowatthours.
Energy Rate: The rate which sets forth the charges for energy. It is 
expressed in mills per kilowatthour and applied to each kilowatthour of 
reservation.
FERC: The Federal Energy Regulatory Commission.
Firm: A type of product and/or service guaranteed to be available in 
accordance with the terms of the contract.
FRN: Federal Register notice.
FY: Fiscal year; October 1 to September 30.
kW: Kilowatt--the electrical unit of capacity that equals 1,000 watts.
kWh: Kilowatthour--the electrical unit of energy that equals 1,000 
watts in 1 hour.
kWyear: Kilowattyear--the electrical unit of the yearly amount of 
capacity.
Mill: A monetary denomination of the United States that equals one 
tenth of a cent or one thousandth of a dollar.
Mills/kWh: Mills per kilowatthour--a unit of charge for energy.
Nonfirm: A type of product and/or service not always available at the 
time requested by the Customer.
O&M: Operation and Maintenance.
MWD: The Metropolitan Water District of Southern California.
P-DP: The Parker-Davis Project.
Power: Capacity and energy.
Proposed Rate: A rate that has been recommended by Western to the 
Deputy Secretary of the DOE for approval.
Provisional Rate: A rate which has been confirmed, approved, and placed 
into effect on an interim basis by the Deputy Secretary of the DOE.
PRS: Power Repayment Study.
Rate Brochure: A document explaining the rationale and background for 
the rate proposal contained in this Rate Order.
Reclamation: United States Department of the Interior, Bureau of 
Reclamation.
Reclamation Law: A series of Federal laws. Viewed as a whole, these 
laws create the originating framework under which Western markets 
power.
Revenue Requirement: The revenue required to recover annual expenses, 
such as O&M, purchase power, transmission service expenses, interest, 
deferred expenses, repayment of Federal investments, and other assigned 
costs.
SCADA: Supervisory Control and Data Acquisition.
SLCA/IP: Salt Lake City Area/Integrated Projects--the resources of the 
Collbran, Dolores, Rio Grande, and Seedskadee projects blended together 
with the CRSP to create the SLCA/IP.
Supporting Documentation: A compilation of data and documents that 
support the Rate Brochure and the rate proposal.
Western: United States Department of Energy, Western Area Power 
Administration.

Effective Date

    The new interim formula rates will take effect on the first day of 
the first full billing period beginning on or after October 1, 2008, 
and will remain in effect until September 30, 2013, pending approval by 
FERC on a final basis.

Public Notice and Comment

    Western followed the Procedures for Public Participation in Power 
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these formula rates. The proposed action constituted a minor 
rate adjustment as defined by 10 CFR part 903.2. As such, Western 
determined that it was not necessary to hold public information or 
comment forums. The steps Western took to involve interested parties in 
the rate process were:
    1. On October 11, 2007, Western's Desert Southwest Region mailed a 
notice announcing an informal meeting to the P-DP customers and 
interested parties. The informal meeting was held November 14, 2007, in 
Phoenix, Arizona. At this informal meeting, Western explained the 
rationale for the rate adjustment, presented options for the proposed 
formula rates, and answered questions.
    2. On December 14, 2007, Western's Desert Southwest Region e-mailed 
the P-DP customers and interested parties to provide the Web site 
address to obtain the supplemental information that was requested by 
the customers at the informal meeting held November 14, 2007.
    3. On February 1, 2008, Western's Desert Southwest Region mailed a 
notice announcing a second informal meeting to the P-DP customers and 
interested parties. The second informal meeting was held March 12, 
2008, in Phoenix, Arizona. At this informal meeting, Western explained 
the minor rate adjustment process and presented proposed formula rates 
that included

[[Page 54590]]

customer input from the informal meeting held November 14, 2008.
    4. An FRN published on April 29, 2008 (73 FR 23248), announced the 
proposed formula rates. This notice began a public consultation and 
comment period.
    5. On May 1, 2008, Western's Desert Southwest Region e-mailed the 
FRN (73 FR 23248) to the P-DP customers and interested parties and 
provided the Web site address to obtain a copy of the Rate Brochure and 
supporting documentation.
    6. Western received one comment letter during the consultation and 
comment period, which ended on May 29, 2008. All formally submitted 
comments have been considered in preparing this Rate Order.

Comments

    Written comments were received from the Irrigation & Electrical 
Districts Association of Arizona.

Project Description

    The P-DP was formed by consolidating two projects, Parker Dam and 
Davis Dam, under the terms of the Act of May 28, 1954. All facilities 
of the P-DP were operated and maintained by Reclamation until the 
formation of the Department of Energy pursuant to the Department of 
Energy Organization Act (DOE Act). Pursuant to the DOE Act, 
responsibility for the power marketing functions of Reclamation, 
including the construction, operation, and maintenance of substations, 
transmission lines, and attendant facilities, was transferred to the 
DOE. The responsibility for operation and maintenance of the dams and 
powerplants remains with Reclamation.
    Parker Dam, which created Lake Havasu 155 miles below Hoover Dam on 
the Colorado River, was authorized by the Rivers and Harbors Act of 
August 30, 1935. Construction of Parker Dam began in 1934 and was 
completed in 1942. Reclamation constructed the project partly with 
funds advanced by the MWD. MWD receives half of the capacity and energy 
from the four generating units at Parker Dam.
    Davis Dam, which created Lake Mohave 67 miles below Hoover Dam on 
the Colorado River, was authorized under the Reclamation Project Act of 
1939. Construction began in 1941, but due to construction delays caused 
by World War II, it was not completed until 1953. Davis Dam has five 
generating units.
    Power generated from the P-DP is marketed to customers in Arizona, 
Nevada, and California. Excluding project use, the marketing period 
effective FY 2009 provides for 198,337 kW of capacity in the winter 
season and 259,206 kW of capacity in the summer season. Customers 
receive 1,703 kWh per kW in the winter season and 3,441 kWh per kW in 
the summer season.
    The P-DP transmission system includes 48 substations and over 1,500 
circuit miles of transmission lines in Arizona, southern Nevada, and 
along the Colorado River in California.

Power Repayment Study

    Western prepares a PRS each FY to determine if revenues will be 
sufficient to repay, within the required time, all costs assigned to 
the P-DP. Repayment criteria are based on law, policies, including DOE 
Order RA 6120.2, and authorizing legislation.
    The provisional formula rates under Rate Schedules, PD-F7, PD-FT-7, 
and PD-FCT7 are equal to the existing rates. The provisional firm 
electric service capacity rate under Rate Schedule PD-F7 is $17.45 per 
kWyear. The provisional firm electric service energy rate under Rate 
Schedule PD-F7 is 3.32 mills per kWh. The provisional firm point-to-
point transmission service rate under Rate Schedule PD-FT7 is $12.96 
per kWyear. The provisional firm transmission service rate for 
transmission of SLCA/IP power under Rate Schedule PD-FCT7 is $12.96 per 
kWyear. Under Rate Schedule PD-NFT7, the provisional rate for nonfirm 
transmission service will result in a rate decrease of 40 percent when 
compared to the existing rate. The existing rate for nonfirm 
transmission service under Rate Schedule PD-NFT6 is 2.47 mills per kWh. 
The provisional rate for nonfirm transmission service under Rate 
Schedule PD-NFT7 is 1.48 mills per kWh.

Existing and Provisional Rates

    A comparison of the existing and provisional firm electric and 
transmission service rates follows:

                        Parker-Davis Project Comparison of Existing and Provisional Rates
----------------------------------------------------------------------------------------------------------------
                                                                                    Provisional
                                                                                       rates
                             Service                              Existing rates  (effective  10/     Change
                                                                                      01/08)
----------------------------------------------------------------------------------------------------------------
Firm Electric Service--Capacity ($/kWyear)......................          $17.45          $17.45              0%
Firm Electric Service--Energy (mills/kWh).......................            3.32            3.32              0%
Firm Point-to-Point Transmission ($/kWyear).....................          $12.96          $12.96              0%
Firm Transmission of SLCA/IP Power ($/kWyear)...................          $12.96          $12.96              0%
Nonfirm Transmission (mills/kWh)................................            2.47            1.48           (40%)
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Certification of Rates

    Western's Administrator certified that the provisional rates for P-
DP firm electric and transmission service are the lowest possible rates 
consistent with sound business principles. The provisional rates were 
developed following administrative policies and applicable laws.

Firm Electric and Transmission Service Formula Rates Discussion

    According to Reclamation Law, Western must establish power and 
transmission rates sufficient to recover operation, maintenance, 
purchased power expenses, interest expenses, and repayment of power 
investment and irrigation aid.
    Formula rates for P-DP firm electric and transmission service are 
calculated annually. Under the rate methodology, costs that are readily 
identifiable as supporting either generation or transmission functions 
are directly allocated to generation or transmission revenue 
requirements. All other costs are apportioned between generation and 
transmission revenue requirements based on cost allocation factors. 
Existing cost allocation factors include SCADA, CME, percentage 
allocation of Western O&M, labor hours devoted to billing, and historic 
project investment.
    Western will modify the existing rate methodology by eliminating 
the CME, labor hours devoted to billing, and historic project 
investment cost allocation factors. Western will implement a new cost 
allocation factor that is the ratio of the number of customers 
receiving firm electric or

[[Page 54591]]

transmission service to the total number of customers. A comparison of 
the affected cost allocation factors follows:

       Parker-Davis Project Comparison of Cost Allocation Factors
------------------------------------------------------------------------
            Cost                 Existing factor       Proposed factor
------------------------------------------------------------------------
Systemwide (Billing and       Billing Hours.......  Ratio of Customers.
 Finance).
Operations/Dispatch.........  SCADA/Billing Hours.  SCADA.
CME.........................  CME Calculation.....  Percentage
                                                     Allocation of
                                                     Western O&M.
Western Principal & Interest  Historic Investment.  None (Allocated to
                                                     Transmission Only).
------------------------------------------------------------------------

    Western prepared a detailed impact analysis that determined, over 
the last seven years, the cost allocation factor changes would have 
resulted in an average annual change to either the transmission or 
generation revenue requirements of approximately $388,000 or 0.96%. At 
this time, the firm electric service and firm transmission service 
rates resulting from the modifications to the rate methodology are 
equal to existing rates and will provide sufficient revenue to recover 
generation and transmission revenue requirements. The nonfirm 
transmission rate is being decreased due to a change in the rate 
formula, and as a result, it will not exceed the firm point-to-point 
transmission rate. The change in the nonfirm transmission rate is 
independent of the changes to the cost allocation factors.
    During informal discussions prior to the commencement of the rate 
adjustment process, Western received a request from customers to modify 
the billing practices for P-DP long-term firm transmission service. In 
the request, the customers noted that payments for firm electric 
service are required one month in advance of service and suggested that 
all parties be subject to the same billing terms and conditions.
    Existing billing practices for P-DP long-term firm transmission 
service allow customers to pay after the fact, usually one month after 
service is provided. Additionally, the P-DP rate calculations assume 
the full and timely collection of revenues. To the extent that customer 
payments are late or uncollectible, rates may be insufficient to 
recover revenue requirements. This could result in a rate increase, 
adversely affecting all P-DP customers. In response to the customers' 
request, Western will modify the billing practices so that customers 
will be required to pay for P-DP long-term firm transmission service 
one month in advance of service. This requirement is incorporated into 
Rate Schedules PD-FT7 and PD-FCT7.

Statement of Revenue and Related Expenses

    The following table provides a summary of projected revenue and 
expense data for the firm electric and transmission services formula 
rates through the 5-year provisional rate approval period.

       Parker-Davis Project Comparison of 5-Year Rate Period (FY 2009-FY 2013) Total Revenues and Expenses
----------------------------------------------------------------------------------------------------------------
                                                                  Existing rates    Provisional     Difference
                                                                      ($000)       rates ($000)       ($000)
----------------------------------------------------------------------------------------------------------------
Total Revenues \1\..............................................        $295,256        $295,256              $0
Revenue Distribution
Expenses:
    O&M.........................................................         161,701         161,701               0
    Purchased Power and Wheeling................................          21,043          21,043               0
    Interest....................................................          86,266          86,266               0
    Other.......................................................           7,282           7,282               0
                                                                 -----------------------------------------------
        Total Expenses..........................................         276,292         276,292               0
Principal Payments:
    Capitalized Expenses........................................               0               0               0
    Original Project and Additions..............................             110             110               0
    Replacements................................................          18,804          18,804               0
    Irrigation..................................................              50              50               0
                                                                 -----------------------------------------------
        Total Principal Payments................................          18,964          18,964               0
                                                                 -----------------------------------------------
        Total Revenue Distribution..............................         295,256         295,256              0
----------------------------------------------------------------------------------------------------------------
\1\ Total revenues include approximately $41,625,000 of available revenues from prior periods.

Basis for Rate Development

    The existing formula rates for P-DP firm electric and transmission 
service under Rate Schedules PD-F6, PD-FT6, PD-FCT6, and PD-NFT6 expire 
September 30, 2008. The provisional formula rates will provide 
sufficient revenue to pay all annual costs, including interest expense, 
and repayment of power investment and irrigation aid within the 
allowable periods. The provisional formula rates will take effect on 
October 1, 2008, to correspond with the start of the Federal fiscal 
year, and will remain in effect through September 30, 2013.

Comments

    The comments and responses regarding the firm electric and 
transmission service rates, paraphrased for brevity when not affecting 
the meaning of the statement(s), are discussed below.
    A. Comment: An interested party made a statement with regard to 
Senate

[[Page 54592]]

Bill S.2739. Section 513 of that bill contains post-September 11, 2001, 
security cost legislation which specifies the amount of security costs 
which will be considered non-reimbursable. The Interested Party 
requested that Western and Reclamation adjust their budgets to account 
for the legislation.
    Response: Senate Bill S.2739 was signed into law on May 8, 2008. 
Reclamation is in the process of determining which costs in these rate 
calculations will be deemed non-reimbursable under the new law. Any 
security costs ultimately deemed non-reimbursable will be carried into 
the next fiscal year, reducing FY 2010 revenue requirements.
    B. Comment: An interested party sought assurance that the firm 
electric and transmission service formula rates will include hydrologic 
data to be collected by Reclamation in July of 2008.
    Response: Generation and purchase power forecasts used in the firm 
electric and transmission service formula rates are based on the most 
recent Annual Operating Plan (AOP) produced by Western and presented to 
the customers. The FY 2009 AOP, used to calculate the rates, was based 
on hydrologic data released by Reclamation on April 7, 2008. Additional 
revenues or expenses resulting from changes in hydrology will be 
included in the annual rate calculation for the subsequent year.

Availability of Information

    Information about this rate adjustment, including power repayment 
studies, comments, letters, memorandums, and other supporting material 
made or kept by Western and used to develop the provisional rates, is 
available for public review in the Desert Southwest Regional Office, 
Western Area Power Administration, 615 South 43rd Avenue, Phoenix, 
Arizona.

Ratemaking Procedure Requirements

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.

Submission to the Federal Energy Regulatory Commission

    The interim formula rates herein confirmed, approved, and placed 
into effect, together with supporting documents, will be submitted to 
FERC for confirmation and final approval.

Order

    In view of the above and under the authority delegated to me, I 
confirm and approve on an interim basis, effective October 1, 2008, 
Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 for the Parker-Davis 
Project of the Western Area Power Administration. The rate schedules 
shall remain in effect on an interim basis, pending FERC's confirmation 
and approval of them or substitute rates on a final basis through 
September 30, 2013.

    Dated: September 12, 2008.

Jeffery F. Kupfer,
Acting Deputy Secretary.
    Rate Schedule PD-F7 (Supersedes Schedule PD-F6).

United States Department of Energy

Western Area Power Administration

Parker-Davis Project; Schedule of Rates for Firm Electric Service

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2008, through September 30, 2013, or until superseded, 
whichever occurs earlier.

Available

    In the area served by the Parker-Davis Project (P-DP).

Applicable

    To firm electric service customers for firm power service supplied 
through one meter at one point of delivery, unless otherwise provided 
by service agreement or contract.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by service agreement 
or contract.

Charges

    Energy Charge: Each firm electric service customer shall be billed 
monthly an energy charge. This charge is equal to the customer's 
monthly contractual energy reservation multiplied by the Energy Rate, 
rounded to the penny. The Energy Rate shall be equal to 50 percent of 
the annual generation revenue requirement divided by the estimated 
total generation delivery commitments, rounded to two decimal places.
    Capacity Charge: Each firm electric service customer shall be 
billed monthly a capacity charge. This charge is equal to the 
customer's monthly contractual capacity reservation multiplied by the 
Capacity Rate, rounded to the penny. The Capacity Rate shall be equal 
to 50 percent of the annual generation revenue requirement divided by 
the estimated total generation delivery commitments, rounded to two 
decimal places.
    Transmission Charge: Each firm electric service customer shall be 
billed monthly a transmission charge. This charge is equal to the 
customer's contractual reservation multiplied by the rate calculated in 
accordance with PD-FT7, rounded to the penny.
    Lower Basin Development Fund Contribution Charge: The contribution 
charge is 4.5 mills/kWh for each kWh measured or scheduled to an 
Arizona purchaser and 2.5 mills/kWh for each kWh measured or scheduled 
to a California or Nevada purchaser.

Billing of Excess Energy

    For each month in which there is excess energy available, offered, 
and delivered to the firm electric service customer, such excess energy 
shall be billed at the Energy Rate.

Billing for Unauthorized Overruns

    For each month in which there is a contract violation involving an 
unauthorized overrun of energy and/or capacity, such overruns shall be 
billed at 10 times the Energy and/or Capacity Rate in this rate 
schedule. For each month in which there is a contract violation 
involving an unauthorized overrun of transmission, such overrun shall 
be billed at two times the Transmission Charge in this rate schedule.

Transformer Losses

    If delivery is made at transmission voltage but metered on the low-
voltage side of the substation, the meter readings will be increased to 
compensate for transformer losses as provided for in the contract.

Power Factor

    The firm electric service customer will normally be required to 
maintain a power factor at all points of measurement between 95-percent 
lagging and 95-percent leading.
    Rate Schedule PD-FT7 (Supersedes Schedule PD-FT6).

United States Department of Energy

Western Area Power Administration

Parker-Davis Project; Schedule of Rates for Firm Point-to-Point 
Transmission Service

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2008, through September 30, 2013, or

[[Page 54593]]

until superseded, whichever occurs earlier.

Available

    In the area served by the Parker-Davis Project (P-DP).

Applicable

    To firm point-to-point transmission service customers where 
capacity and energy are supplied to the P-DP system at points of 
interconnection with other systems and transmitted and delivered, less 
losses, to points of delivery on the P-DP system.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by service agreement 
or contract.

Long-Term Rate

    For transmission service one year or longer, the annual rate for 
each kilowatt per year is equal to the annual transmission revenue 
requirement divided by the estimated transmission delivery commitments, 
rounded to the nearest 12 cent increment. The annual rate for long-term 
service is payable monthly at a rate for each kilowatt per month equal 
to the annual rate for long-term service divided by 12.

Short-Term Rates

    For transmission service up to one year, the maximum rate for each 
kW is as follows:
    Monthly: Equal to the annual long-term rate, divided by 12 and 
rounded to two decimal places.
    Weekly: Equal to the annual long term rate, divided by 52 and 
rounded to two decimal places.
    Daily: Equal to the annual long term rate, divided by 365 and 
rounded to two decimal places.
    Hourly: Equal to the annual long term rate, divided by 8,760 and 
rounded to five decimal places.
Discounts may be offered from time to time in accordance with Western's 
Open Access Transmission Tariff.

Billing

    Western will bill firm point-to-point transmission service 
customers monthly by applying the rates under this rate schedule to the 
amount of capacity reserved. Payment for service will be required one 
month in advance of service.

Adjustments for Reactive Power

    There shall be no entitlement to transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually 
agreed upon by the customer and Western or their authorized 
representatives.

Adjustments for Losses

    Capacity and energy losses incurred in connection with the 
transmission and delivery of capacity and energy under this rate 
schedule shall be supplied by the customer in accordance with the 
service agreement or contract.

Overrun of Capacity Reserved

    Western will assess a charge for unauthorized use of transmission 
service at a rate equal to two times the applicable rate for the 
service at issue. The charge will be applied to use in excess of the 
reservation amount, which shall be the difference between the amount of 
transmission service actually used by the customer less the amount of 
transmission service the customer has reserved. The customer will incur 
the charge for an overrun during the calendar month or for the period 
of transmission service if such service is for a term of less than one 
month.
    Rate Schedule PD-FCT7 (Supersedes Schedule PD-FCT6).

United States Department of Energy

Western Area Power Administration

Parker-Davis Project; Schedule of Rate for Firm Transmission Service of 
Salt Lake City Area/Integrated Projects Power

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2008, through September 30, 2013, or until superseded, 
whichever occurs earlier.

Available

    In the area served by the Parker-Davis Project (P-DP).

Applicable

    To Salt Lake City Area/Integrated Projects (SLCA/IP) southern 
division customers, where SLCA/IP capacity and energy are supplied to 
the P-DP system by the Colorado River Storage Project (CRSP) at points 
of interconnection with the CRSP system and transmitted and delivered 
on a uni-directional basis, less losses, to southern division customers 
at points of delivery on the P-DP system.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by service agreement 
or contract.

Rate

    The annual rate for each kilowatt per year is equal to the annual 
transmission revenue requirement divided by the estimated transmission 
delivery commitments, rounded to the nearest 12 cent increment. The 
annual rate is payable monthly at a rate for each kilowatt per month 
equal to the annual rate divided by 12.

Billing

    Western will bill firm transmission service customers monthly by 
applying the rates under this rate schedule to the amount of capacity 
reserved. Payment for service will be required one month in advance of 
said service.

Adjustments for Reactive Power

    There shall be no entitlement to transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually 
agreed upon by the customer and Western or their authorized 
representatives.

Adjustments for Losses

    Capacity and energy losses incurred in connection with the 
transmission and delivery of capacity and energy under this rate 
schedule shall be supplied by the customer in accordance with the 
service agreement or contract.

Overrun of Capacity Reserved

    Western will asses a charge for unauthorized use of transmission 
service at a rate equal to two times the applicable rate for the 
service at issue. The charge will be applied to use in excess of the 
reservation amount, which shall be the difference between the amount of 
transmission service actually used by the customer less the amount of 
transmission service the customer has reserved. The customer will incur 
the charge for an overrun during the calendar month or for the period 
of transmission service if such service is for a term of less than one 
month.
    Rate Schedule PD-NFT7 (Supersedes Schedule PD-NFT6).

United States Department of Energy

Western Area Power Administration

Parker-Davis Project; Schedule of Rate for Nonfirm Transmission Service

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2008, through September 30, 2013, or until superseded, 
whichever occurs earlier.

Available

    In the area served by the Parker-Davis Project (P-DP).

[[Page 54594]]

Applicable

    To nonfirm transmission service customers where capacity and energy 
are supplied to the P-DP system at points of interconnection with other 
systems and transmitted and delivered, less losses, to points of 
delivery on the P-DP system.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by service agreement 
or contract.

Rate

    The nonfirm transmission service rate for each kilowatt per hour is 
equal to the annual transmission revenue requirement divided by the 
estimated transmission delivery commitments, divided by 8,760 and 
rounded to five decimal places. Discounts may be offered from time to 
time in accordance with Western's Open Access Transmission Tariff.

Billing

    Western will bill nonfirm transmission customers monthly by 
applying the nonfirm rate under this rate schedule to the amount of 
capacity reserved.

Adjustments for Reactive Power

    There shall be no entitlement to transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually 
agreed upon by the customer and Western or their authorized 
representatives.

Adjustments for Losses

    Capacity and energy losses incurred in connection with the 
transmission and delivery of capacity and energy under this rate 
schedule shall be supplied by the customer in accordance with the 
service agreement or contract.

[FR Doc. E8-22096 Filed 9-19-08; 8:45 am]
BILLING CODE 6450-01-P