[Federal Register Volume 75, Number 51 (Wednesday, March 17, 2010)]
[Notices]
[Pages 12740-12743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5801]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Proposed Rate Adjustment, Public Forum, and Opportunities for 
Public Review and Comment for Georgia-Alabama-South Carolina System of 
Projects

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of proposed rate.

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SUMMARY: Southeastern Power Administration (Southeastern) proposes to 
revise existing schedules of rates and charges applicable to the sale 
of power from the Georgia-Alabama-South Carolina System of Projects 
effective for a 5-year period, October 1, 2010, through September 30, 
2015. Additionally, opportunities will be

[[Page 12741]]

available for interested persons to review the present rates and the 
proposed rates and supporting studies, to participate in a public 
forum, and to submit written comments. Southeastern will evaluate all 
comments received in this process.

DATES: Written comments are due on or before June 15, 2010. A public 
information and comment forum will be held in Atlanta, Georgia, at 10 
a.m., on April 29, 2010. Persons desiring to speak at the forum should 
notify Southeastern at least three (3) days before the forum is 
scheduled, so that a list of forum participants can be prepared. Others 
may speak if time permits.

ADDRESSES: Written comments should be submitted to: Administrator, 
Southeastern Power Administration, Department of Energy, 1166 Athens 
Tech Road, Elberton, Georgia, 30635-6711. The public information and 
comment forum for the Georgia-Alabama-South Carolina System of Projects 
will be at the Sheraton Gateway Atlanta Airport, 1900 Sullivan Road, 
Atlanta, Georgia 30337 (770) 997-1100.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance & Marketing, Southeastern Power Administration, 
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635, 
(706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission 
(FERC) by order issued April 8, 2008 (123 FERC ] 62,022), confirmed and 
approved on a final basis Wholesale Power Rate Schedules SOCO-1-C, 
SOCO-2-C, SOCO-3-C,SOCO-4-C, ALA-1-L, MISS-1-L, Duke-1-C, Duke-2-C, 
Duke-3-C, Duke-4-C, Santee-1-C, Santee-2-C, Santee-3-C, Santee-4-C, 
SCE&G-1-C, SCE&G-2-C, SCE&G-3-C, SCE&G-4-C, Pump-1-A, Pump-2, 
Regulation-1 and Replacement-1 applicable to Georgia-Alabama-South 
Carolina System of Projects' power for a period ending September 30, 
2012.
    Discussion: Existing rate schedules are predicated upon a July 2006 
repayment study and other supporting data that was adopted prior to the 
completion of a final cost allocation for the Richard B. Russell 
Project. The final cost allocation for the Richard B. Russell Project 
was adopted on March 25, 2008. Southeastern prepared a repayment study 
in February 2010 with the cost adjustments necessary to comply with the 
final cost allocation. This repayment study demonstrates that the 
existing rates are not adequate to meet repayment criteria. 
Southeastern is proposing to establish new rates that will recoup these 
unrecovered costs.
    A revised study with a revenue increase of $27,679,000 in fiscal 
year 2011 and all future years over the current repayment study shows 
that all costs are repaid within their service life. Therefore, 
Southeastern is proposing to revise the existing rates to generate this 
additional revenue. The rate adjustment is an increase of about fifteen 
percent.
    Four reversible pumped storage units have been installed at the 
Richard B. Russell Project. Construction of these units was completed 
in Fiscal Year 1993. However, due to litigation, these units were not 
available for commercial operation until Fiscal Year 2002. 
Southeastern's customers have suggested the cost of interest during 
construction from 1993 should not be allocated to power for repayment. 
The U.S. Army Corps of Engineers has provided Southeastern with 
financial statements that show $223,733,000 was charged to interest 
during construction at the Russell Project for the period from Fiscal 
Year 1993 through Fiscal Year 2002. Southeastern has computed an 
additional $115,466,000 of interest for the period from Fiscal Year 
2002 through Fiscal Year 2009. The total interest for the period from 
1993 through 2009 is $339,198,000. Consistent with the comments 
received, Southeastern's proposed rates do not include these costs 
because Southeastern believes that exclusion of the disputed costs 
should be discussed further at the public forum.
    Southeastern is proposing the following rate schedules to be 
effective for the period from October 1, 2010, through September 30, 
2015.

Rate Schedule SOCO-1-D

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida to whom power may be wheeled and scheduled 
pursuant to contracts between the Government and Southern Company 
Services, Incorporated.

Rate Schedule SOCO-2-D

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida to whom power may be wheeled pursuant to 
contracts between the Government and Southern Company Services, 
Incorporated. The customer is responsible for providing a scheduling 
arrangement with the Government.

Rate Schedule SOCO-3-D

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida to whom power may be scheduled pursuant to 
contracts between the Government and Southern Company Services, 
Incorporated. The customer is responsible for providing a transmission 
arrangement.

Rate Schedule SOCO-4-D

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, and Florida served through the transmission facilities of 
Southern Company Services, Inc. The customer is responsible for 
providing a scheduling arrangement with the Government and for 
providing a transmission arrangement.

Rate Schedule ALA-1-M

    Available to PowerSouth Energy Cooperative.

Rate Schedule MISS-1-M

    Available to the South Mississippi Electric Power Association to 
whom power may be wheeled pursuant to contract between the Government 
and PowerSouth Energy Cooperative.

Rate Schedule Duke-1-D

    Available to public bodies and cooperatives in North Carolina and 
South Carolina to whom power may be wheeled and scheduled pursuant to 
contracts between the Government and Duke Power Company.

Rate Schedule Duke-2-D

    Available to public bodies and cooperatives in North Carolina and 
South Carolina to whom power may be wheeled pursuant to contracts 
between the Government and Duke Power Company. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule Duke-3-D

    Available to public bodies and cooperatives in North Carolina and 
South Carolina to whom power may be scheduled pursuant to contracts 
between the Government and Duke Power Company. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule Duke-4-D

    Available to public bodies and cooperatives in North Carolina and 
South Carolina served through the transmission facilities of Duke Power 
Company. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule Santee-1-D

    Available to public bodies and cooperatives in South Carolina to 
whom

[[Page 12742]]

power may be wheeled and scheduled pursuant to contracts between the 
Government and South Carolina Public Service Authority.

Rate Schedule Santee-2-D

    Available to public bodies and cooperatives in South Carolina to 
whom power may be wheeled pursuant to contracts between the Government 
and South Carolina Public Service Authority. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule Santee-3-D

    Available to public bodies and cooperatives in South Carolina to 
whom power may be scheduled pursuant to contracts between the 
Government and South Carolina Public Service Authority. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule Santee-4-D

    Available to public bodies and cooperatives in South Carolina 
served through the transmission facilities of South Carolina Public 
Service Authority. The customer is responsible for providing a 
scheduling arrangement with the Government and for providing a 
transmission arrangement.

Rate Schedule SCE&G-1-D

    Available to public bodies and cooperatives in South Carolina to 
whom power may be wheeled and scheduled pursuant to contracts between 
the Government and South Carolina Electric & Gas Company.

Rate Schedule SCE&G-2-D

    Available to public bodies and cooperatives in South Carolina to 
whom power may be wheeled pursuant to contracts between the Government 
and South Carolina Electric & Gas Company. The customer is responsible 
for providing a scheduling arrangement with the Government.

Rate Schedule SCE&G-3-D

    Available to public bodies and cooperatives in South Carolina to 
whom power may be scheduled pursuant to contracts between the 
Government and South Carolina Electric & Gas Company. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule SCE&G-4-D

    Available to public bodies and cooperatives in South Carolina 
served through the transmission facilities of South Carolina Electric & 
Gas Company. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule Pump--1-A

    Available to all customers of the Georgia-Alabama-South Carolina 
System and applicable to energy from pumping operations at the Carters 
and Richard B. Russell projects.

Rate Schedule Pump--2

    Available to public bodies and cooperatives who provide their own 
scheduling arrangement and elect to allow Southeastern to use a portion 
of their allocation for pumping.

Rate Schedule Regulation--1

    Available to public bodies and cooperatives in Georgia, Alabama, 
Mississippi, Florida, South Carolina, or North Carolina to whom 
regulation service is provided pursuant to contracts between the 
Government and the customer.

Rate Schedule Replacement--1

    Available to all customers in the Georgia-Alabama-South Carolina 
System and applicable to replacement energy.
    The proposed rates for capacity, energy, and generation services 
are as follows:

Capacity: $4.48 per kW per month.
Energy: 11.43 mills per kWh.
Generation Services: $0.12 per kW per month.

    Under this scenario, 75 per cent of generation revenues are 
recovered from capacity sales and 25 per cent are recovered from energy 
sales. These rates are expected to produce an average revenue increase 
of $27,679,000 in FY 2011 and all future years.
    The rates for transmission, scheduling, reactive supply, and 
regulation and frequency response apply to all four scenarios and are 
illustrated in Table 1.

 Southeastern Power Administration Proposed Rates for Transmission Scheduling, Reactive, and Regulation Charges
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                                                   Transmission     Scheduling       Reactive       Regulation
                  Rate schedule                   charge  ($/kW/   charge  $/kW/   charge  $/kW/   charge  $/kW/
                                                      month)           month           month           month
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SOCO-1-D........................................            2.69          0.0806            0.11          0.0483
SOCO-2-D........................................            2.69             N/A            0.11             N/A
SOCO-3-D........................................             N/A          0.0806             N/A          0.0483
SOCO-4-D........................................             N/A             N/A             N/A             N/A
ALA-1-M.........................................             N/A             N/A             N/A             N/A
MISS-1-M........................................            2.62             N/A             N/A             N/A
Duke-1-D........................................            0.94             N/A             N/A             N/A
Duke-2-D........................................            0.94             N/A             N/A             N/A
Duke-3-D........................................             N/A             N/A             N/A             N/A
Duke-4-D........................................             N/A             N/A             N/A             N/A
Santee-1-D......................................            1.32             N/A             N/A             N/A
Santee-2-D......................................            1.32             N/A             N/A             N/A
Santee-3-D......................................             N/A             N/A             N/A             N/A
Santee-4-D......................................             N/A             N/A             N/A             N/A
SCE&G-1-D.......................................            1.02             N/A             N/A             N/A
SCE&G-2-D.......................................            1.02             N/A             N/A             N/A
SCE&G-3-D.......................................             N/A             N/A             N/A             N/A
SCE&G-4-D.......................................             N/A             N/A             N/A             N/A
Pump--1-A.......................................             N/A             N/A             N/A             N/A
Pump--2.........................................             N/A             N/A             N/A             N/A
Regulation-1....................................             N/A             N/A             N/A            0.05
Replacement-1...................................             N/A             N/A             N/A             N/A
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[[Page 12743]]

    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, Georgia 30635-6711. Proposed Rate 
Schedules SOCO-1-D, SOCO-2-D, SOCO-3-D, SOCO-4-D, ALA-1-M, MISS-1-M, 
Duke-1-D, Duke-2-D, Duke-3-D, Duke-4-D, Santee-1-D, Santee-2-D, Santee-
3-D, Santee-4-D, SCE&G-1-D, SCE&G-2-D, SCE&G-3-D, SCE&G-4-D, Pump-1-A, 
Pump-2, Regulation-1, and Replacement-1 are also available.

    Dated: March 10, 2010.
Kenneth E. Legg,
Administrator.
[FR Doc. 2010-5801 Filed 3-16-10; 8:45 am]
BILLING CODE 6450-01-P