[Federal Register Volume 74, Number 122 (Friday, June 26, 2009)]
[Notices]
[Pages 30567-30568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15047]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pick-Sloan Missouri Basin Program--Eastern Division--Rate Order 
No. WAPA-148

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Transmission Service Penalty Rate for 
Unreserved Use

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SUMMARY: The Western Area Power Administration (Western) proposes to 
add a penalty rate for Unreserved Use of Transmission Service for the 
Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--ED) in a 
new rate schedule, Rate Schedule UGP-TSP1. The new rate schedule for 
Unreserved Use of Transmission System Penalties, Rate Schedule UGP-
TSP1, is proposed to go into effect on the later of January 1, 2010, or 
when Western's Open Access Transmission Tariff (OATT) is revised to 
provide for Unreserved Use Penalties. Prior to implementing the penalty 
rate, Western will post notice on its Open Access Same-Time Information 
System (OASIS) Web site. If Rate Schedule UGP-TSP1 is implemented, it 
will remain in effect through December 31, 2014, or until superseded. 
Western will prepare a brochure that provides detailed information on 
the proposed rate to all interested parties. Publication of this 
Federal Register notice begins the formal process for the proposed 
penalty rate.

DATES: The consultation and comment period begins today and will end 
September 24, 2009. Western will present a detailed explanation of the 
proposed rate at a public information forum. The public information 
forum date is July 28, 2009, 8 a.m. to 8:45 a.m. CDT, Sioux Falls, 
South Dakota. Western will accept oral and written comments at a public 
comment forum. The public comment forum date is July 28, 2009, and will 
be held in conjunction with the public comment forum for the adjustment 
of Western's transmission and ancillary services rates (as announced in 
74 FR 26682 on June 3, 2009) from 9 a.m. to 12 p.m. CDT, Sioux Falls, 
South Dakota. Western will accept written comments any time during the 
consultation and comment period.

ADDRESSES: Written comments and/or requests to be informed of Federal 
Energy Regulatory Commission (FERC) actions concerning the rates 
submitted by Western to the FERC for approval should be sent to Robert 
J. Harris, Regional Manager, Upper Great Plains Region, Western Area 
Power Administration, 2900 4th Avenue North, Billings, MT 59101-1266, 
e-mail [email protected]. Western will post information about the rate 
process on its Web site at http://www.wapa.gov/ugp/rates/default.htm. 
Western will also post official comments received via letter and e-mail 
to its Web site after the close of the comment period. Western must 
receive written comments by the end of the consultation and comment 
period to ensure they are considered in Western's decision process. The 
public information forum location is the Holiday Inn, 100 West 8th 
Street, Sioux Falls, SD. The public comment forum location is the 
Holiday Inn, 100 West 8th Street, Sioux Falls, SD.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Cady-Hoffman, Rates Manager, 
Upper Great Plains Region, Western Area Power Administration, 2900 4th 
Avenue North, Billings, MT 59101-1266, telephone (406) 247-7439, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: The transmission facilities in the P-SMBP--
ED are integrated with transmission facilities of Basin Electric Power 
Cooperative (Basin) and Heartland Consumers Power District (Heartland) 
such that transmission services are provided over an integrated 
transmission system, called the Integrated System (IS), and the rates 
are sometimes referred to as IS Rates. Western acts as the 
administrator of the IS and monitors service under the OATT.\1\ As 
owners of the IS, Western, Basin, and Heartland may be referred to as 
IS Partners.
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    \1\ Western's OATT was most recently approved by FERC on June 
28, 2007, in Docket No. NJ07-2-000, 119 FERC ]61,329 (2007) and the 
FERC's letter order issued on September 6, 2007, in Docket No. NJ07-
2-001.
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Proposed Penalty Rate for Unreserved Use of Transmission Service

    Unreserved Use of Transmission Service is provided when a 
Transmission Customer uses transmission service that it has not 
reserved or uses transmission service in excess of its reserved 
capacity. A Transmission Customer that has not secured reserved 
capacity or exceeds its firm or non-firm reserved capacity at any point 
of receipt or any point of delivery will be assessed Unreserved Use 
Penalties.
    The penalty charge for a Transmission Customer that engages in 
Unreserved Use is 200 percent of Western's approved transmission 
service rate for point-to-point transmission service assessed as 
follows:
    (i) The Unreserved Use Penalty for a single hour of unreserved use 
will be based upon the rate for daily firm point-to-point service.
    (ii) The Unreserved Use Penalty for more than one assessment for a 
given duration (e.g., daily) will increase to the next longest duration 
(e.g., weekly).
    (iii) The Unreserved Use Penalty charge for multiple instances of 
unreserved use (for example, more than 1 hour) within a day will be 
based on the rate for daily firm point-to-point service. The penalty 
charge for multiple instances of unreserved use isolated to 1 calendar 
week would result in a penalty based on the charge for weekly firm 
point-to-point service. The penalty charge for multiple instances of 
unreserved use during more than 1 week during a calendar month is based 
on the charge for monthly firm point-to-point service.
    A Transmission Customer that exceeds its firm reserved capacity at 
any Point of Receipt or Point of Delivery or an Eligible Customer that 
uses Transmission Service at a Point of Receipt or Point of Delivery 
that it has not reserved is required to pay for all Ancillary Services 
identified in Western's OATT that were provided by Western and 
associated with the unreserved service on the IS system. The 
Transmission Customer or Eligible Customer will pay for Ancillary 
Services based on the amount of transmission service it used, but did 
not reserve.
    Unreserved Use Penalties collected over and above the base point-
to-point transmission service charge will be credited against the IS 
Annual Transmission Revenue Requirement (ATRR). For example, if a 
Transmission Customer has unreserved use that results in a penalty 
equal to twice the rate for firm weekly point-to-point

[[Page 30568]]

service, Western will retain an amount equal to the then current rate 
for firm weekly point-to-point service with the balance credited 
against the ATRR at the next rate recalculation.

Legal Authority

    Western is proposing an Unreserved Use Penalty rate for the P-
SMBP--ED in accordance with section 302 of the Department of Energy 
(DOE) Organization Act (42 U.S.C. 7152). This section transferred to 
and vested in the Secretary of Energy the power marketing functions of 
the Secretary of the Department of 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 
section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s); and other 
acts that specifically apply to the projects involved.
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to Western's Administrator; (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to the FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985 (50 FR 37835).
    After review of public comments, and possible amendments or 
adjustments, Western will recommend the Deputy Secretary of Energy 
approve the proposed rates on an interim basis.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that Western initiates or uses to develop the proposed rates 
are available for inspection and copying at the Upper Great Plains 
Regional Office, located at 2900 4th Avenue North, Billings, Montana. 
Many of these documents and supporting information are also available 
on its Web site under the ``2009 Transmission and Ancillary Services 
Rate Adjustment Process'' section located at http://www.wapa.gov/ugp/rates/default.htm.

Regulatory Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969 
(NEPA) (42 U.S.C. 4321-4347), Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508), and DOE NEPA Regulations (10 CFR 
part 1021), Western is in the process of determining whether an 
environmental assessment or an environmental impact statement should be 
prepared or if this action can be categorically excluded from those 
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.

    Dated: June 18, 2009.
Timothy J. Meeks,
Administrator.
[FR Doc. E9-15047 Filed 6-25-09; 8:45 am]
BILLING CODE 6450-01-P