[Federal Register Volume 76, Number 19 (Friday, January 28, 2011)]
[Notices]
[Pages 5148-5154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-1894]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--Western Area Colorado Missouri Balancing 
Authority--Rate Order No. WAPA-155

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Transmission and Ancillary Services Formula 
Rates.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
to update its Loveland Area Projects (LAP) Transmission and Western 
Area Colorado Missouri (WACM) Balancing Authority Ancillary Services 
formula rates. Current formula rates, under Rate Schedules L-FPT1, L-
NFPT1, L-NT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6 and L-AS7, have 
been extended and will expire on February 28, 2013. Pursuant to 
Western's revised Open Access Transmission Tariff (OATT), which was 
effective December 1, 2009, Western is also proposing new formula rates 
for Generator Imbalance Service and Unreserved Use Penalties. Western 
has prepared a brochure that provides detailed information on the 
proposed formula rates to all interested parties. If adopted, the 
proposed formula rates, under Rate Schedules L-FPT1, L-NFPT1, L-NT1, L-
AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9 and L-AS10, would 
be in effect from October 1, 2011, through September 30, 2016, or until 
superseded. Publication of this Federal Register notice begins the 
formal process for consideration of the proposed formula rates.

DATES: The consultation and comment period begins today and will end 
April 28, 2011. Western will present a detailed explanation of the 
proposed formula rates at a public information forum that will be held 
on March 9, 2011, at 9 a.m. MST. Western will accept oral and written 
comments at a public comment forum that will be held on March 9, 2011, 
from 1 p.m. to no later than 2:30 p.m. MST. Western will accept written 
comments any time during the consultation and comment period.

ADDRESSES: The location for both the public information forum and the 
public comment forum is the Budweiser Events Center, 5290 Arena Circle, 
Loveland, Colorado. Send written comments to Mr. Bradley S. Warren, 
Regional Manager, Rocky Mountain Region, Western Area Power 
Administration, 5555 East Crossroads Boulevard, Loveland, CO 80538-
8986, e-mail [email protected]. Western will post information about 
the rate process, as well as comments received via letter and e-mail, 
on its Web site at http://www.wapa.gov/rm/ratesRM/2012/default.htm. 
Written comments must be received by the end of the consultation and 
comment period to be considered by Western in its decision process.

FOR FURTHER INFORMATION CONTACT: Mrs. Sheila D. Cook, Rates Manager, 
Rocky Mountain Region, Western Area Power Administration, 5555 East 
Crossroads Boulevard, Loveland, CO 80538-8986, telephone (970) 461-
7211, e-mail [email protected].

SUPPLEMENTARY INFORMATION: The existing formula-based rates approved 
under Rate Order WAPA-106 \1\ became effective on March 1, 2004, with 
an expiration date of February 28, 2009. The rate schedules, with the 
exception of Rate Schedule L-AS3, Regulation and Frequency Response, 
were extended through February 28, 2011, under Rate Order No. WAPA-
141.\2\ Rate Schedule L-AS3 was revised and approved under Rate Order 
No. WAPA-118,\3\ which became effective June 1, 2006, with an 
expiration date of May 31, 2011. All Transmission and Ancillary 
Services rate schedules, including the Regulation and Frequency 
Response Service schedule, were extended through February 28, 2013, 
under Rate Order No.

[[Page 5149]]

WAPA-154.\4\ The current rate schedules contain formula-based rates 
that are recalculated annually using updated financial and load 
information. The proposed rates continue this approach. If adopted, 
these proposed formula-based rates would be in effect October 1, 2011, 
through September 30, 2016. This Federal Register notice describes each 
service and contains a Rate Comparison Table for quick reference.
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    \1\ WAPA-106 was approved by FERC on a final basis on January 
31, 2005, in Docket No. EF-04-5182-000 (110 FERC ] 62,084).
    \2\ WAPA-141 Extension of Rate Order No. WAPA 106, 2-year 
extension through February 28, 2011. 73 FR 48382, August 19, 2008.
    \3\ WAPA-118 was approved by FERC on a final basis on November 
17, 2006, in Docket No. EF-06-5182-000 (117 FERC ] 62,163).
    \4\ WAPA-154 Extension of Rate Order Nos. WAPA-106 and WAPA-118. 
76 FR 1429, January 10, 2011.
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Proposed Formula Rate for Network Transmission Service

    The proposed formula for calculating the Network Transmission 
Service rate, Rate Schedule L-NT1 is unchanged from the current 
formula:

Monthly Charge = \1/12\ x Annual Transmission Revenue Requirement x 
Customer Load Ratio Share

    The load ratio share is based on the 12-month average of the 
network customer's hourly load coincident with the LAP monthly 
transmission system peak. See discussion below on the calculation of 
the Annual Transmission Revenue Requirement (ATRR).

Proposed Formula Rate for Firm Point-to-Point Transmission Service

    Western proposes no change in the rate formula for Firm Point-to-
Point Transmission Service, Rate Schedule L-FPT1. The monthly rate is 
\1/12\ of the ATRR divided by the 12-month average of the system peak 
load of the LAP transmission system.

Proposed Formula Rate for Non-Firm Point-to-Point Transmission Service

    Western proposes no change in the rate formula for Non-Firm Point-
to-Point Transmission Service, Rate Schedule L-NFPT1. The proposed 
monthly Non-Firm Point-to-Point Transmission Service rate formula is 
the same as the monthly Firm Point-to-Point Transmission Service rate. 
Non-Firm Point-to-Point Transmission Service is available for periods 
ranging from 1 hour to 1 month.

Proposed Annual Transmission Revenue Requirement

    The proposed ATRR would be applicable to both Network and Point-to-
Point Transmission Service. The formula for calculating the ATRR would 
be unchanged from the current formula:
[GRAPHIC] [TIFF OMITTED] TN28JA11.016

    The Annual Transmission Cost is the ratio of Net Investment Cost 
for Transmission Facilities to Net Investment Cost for All Facilities 
multiplied by the Total Annual Costs for All Facilities. Total Annual 
Costs include operations and maintenance, interest and depreciation 
expenses. The calculation is:
[GRAPHIC] [TIFF OMITTED] TN28JA11.017

    This represents a change in how the inputs for the rate are 
developed. Currently, the Annual Transmission Cost is derived by 
multiplying the Net Investment Cost for Transmission Facilities by a 
fixed charge rate.
    The Net Investment Cost for Transmission Facilities would be 
determined by an analysis of the LAP Transmission System. Each LAP 
facility is classified by function: transmission, sub-transmission, 
distribution, or generation-related. The facilities identified as 
performing the function of transmission include all transmission lines 
that are normally operated in a continuously-looped manner and the 
associated substations and switchyard facilities. In the LAP 
Transmission System, these are primarily the 115-kV and the 230-kV 
transmission lines. In addition, a portion of the communication and 
maintenance facilities is included in the investment costs for 
transmission. Only the investment costs of the facilities identified as 
``transmission'', including allocated costs for communication and 
maintenance facilities, are used in developing the Annual Transmission 
Cost. The investment costs of facilities identified as ``sub-
transmission'' and ``distribution'' are excluded from the ATRR, as the 
LAP sub-transmission and distribution systems are used primarily for 
delivery of Federal power to Federal customers. If a transmission 
customer requires the use of the sub-transmission or distribution 
systems, an additional facility-use charge will be assessed. All costs 
of the Fryingpan-Arkansas Project are considered generation-related 
and, therefore, are excluded from the ATRR.
    The transmission expenses which increase transmission system 
capacity would continue to include payments made to others for their 
systems' augmentation of the LAP Transmission System. Miscellaneous 
Revenue Credits and Revenue Credits for Existing Contracts would 
include, but not be limited to, non-firm, discounted firm, and short- 
and long-term firm transmission sales; Scheduling, System Control, and 
Dispatch (SSCD) Service; Unreserved Use Penalties; and facility charges 
for transmission facility investments included in the revenue 
requirement.

Proposed Change to Forward-Looking Transmission Rates

    Western proposes to change the method it uses to calculate the ATRR 
to recover transmission expenses and investments on a current basis 
rather than a historical basis. The change Western proposes would allow 
it to more accurately match cost recovery with cost incurrence. Western 
would use projections to estimate transmission costs and load for the 
upcoming year in the annual rate calculation. Currently, the rate 
calculation for a year uses actual data from 2 years prior to that 
year. The proposed method would be a change in the manner in which the 
inputs for the rate are developed, rather

[[Page 5150]]

than a change to the formula rate itself. When actual cost information 
for a year becomes available, Western would calculate the actual 
revenue requirement. Revenue collected in excess of Western's actual 
revenue requirement would be included as a credit in the ATRR in a 
subsequent year. Similarly, any under-collection of the revenue 
requirement would be recovered in a subsequent year. This true-up 
procedure would ensure that Western recovers no more and no less than 
the actual transmission costs for the year. For example, as FY 2012 
actual financial data becomes available during FY 2013, the under- or 
over-collection of revenue during FY 2012 can be determined. When the 
rates are recalculated for FY 2014, the implemented rates would include 
an adjustment for revenue under- or over-collected in FY 2012.

Proposed Penalty Rate for Unreserved Use of Transmission Service

    Unreserved Use of Transmission Service (Unreserved Use) under the 
proposed Rate Schedule L-AS10 is provided when a transmission customer 
uses transmission service it has not reserved or that exceeds its 
reserved capacity. Western proposes to assess Unreserved Use Penalties 
against a transmission customer that has not secured reserved capacity 
or exceeds its reserved capacity at any point of receipt or any point 
of delivery.
    Western proposes that a transmission customer that engages in 
Unreserved Use be assessed a penalty charge of 200 percent of Western's 
approved transmission service rate for Point-to-Point Transmission 
Service as follows:
    (i) The Unreserved Use Penalty for a single hour of Unreserved Use 
would 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) would increase to the next longest 
duration (e.g., weekly).
    (iii) The Unreserved Use Penalty charge for multiple instances of 
Unreserved Use (e.g., more than one hour) within a day would be based 
on the rate for daily Firm Point-to-Point Service. Multiple instances 
of Unreserved Use isolated to one 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 one week during a calendar month would be 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, would be required to pay for all ancillary 
services identified in Western's OATT based on the amount of 
transmission service it used and did not reserve.
    Unreserved Use Penalties collected over and above the base Point-
to-Point Transmission Service charge would be credited against the LAP 
ATRR in a subsequent year.

Proposed Rate Schedule for Transmission Losses Service

    The proposed rate schedule for Transmission Losses Service, Rate 
Schedule L-AS7, is unchanged, except that losses settled financially 
would use WACM pricing rather than LAP pricing. The loss rate is 
updated periodically and posted on the Rocky Mountain Region (RMR) Open 
Access Same Time Information System Web site. Transmission Losses are 
assessed for all real-time and prescheduled transactions on 
transmission facilities managed by RMR or inside the WACM Balancing 
Authority. Transmission Customers are allowed the option of financial 
settlement or energy repayment. Energy repayment is either concurrently 
or 7 days later. Financial settlement is based on WACM pricing.

Proposed Formula Rate for Scheduling, System Control and Dispatch 
Service

    The proposed formula for SSCD Service, Rate Schedule L-AS1, would 
be as follows:
[GRAPHIC] [TIFF OMITTED] TN28JA11.018

    This formula represents a change from the prior formula. In the 
past, RMR included some salaries, facility costs, and information 
technology support costs for the Automatic Generation Control, 
Switching, Transmission Planning and Operations Management groups in 
the formula, viewing the rate as encompassing all of system control and 
dispatch. Under the proposed formula, the Annual Cost of Scheduling 
Personnel and Related Costs would capture costs primarily for 
scheduling but would exclude costs for system control and dispatch. 
Those costs would be captured in other rates. The change in the formula 
reflects the philosophy that this rate should recover only the costs of 
providing scheduling/tagging service. The denominator would continue to 
be the yearly total of daily tags which result in a schedule. However, 
Schedules for delivery of Transmission Losses would no longer be 
included in the calculation of the rate, nor would they be invoiced. 
This would allow customers to submit an unlimited number of loss tags, 
which permits the Balancing Authority to relate the loss tags to their 
specific scheduled transactions, without the customers being charged 
for these separate tags.
    Western is also proposing a change in the implementation of this 
rate. As SSCD Service is one that transmission providers must obtain 
from the Balancing Authority, Western would allocate the cost of each 
schedule equally among all transmission providers listed on the tag 
that are inside the WACM Balancing Authority. Western would charge all 
non-Federal transmission providers for their allocated costs. Any 
Federal transmission segment would be exempt from billing, as costs for 
these segments would be included in the LAP Transmission Service. 
Currently, the last transmission provider inside the WACM Balancing 
Authority is charged for the entire cost of the tag unless one of the 
transmission segments is Federal transmission. In that case, no charge 
is assessed.

Proposed Formula Rate for Reactive Supply and Voltage Control From 
Generation or Other Sources Service (VAR Support)

    The proposed formula for calculating the revenue requirement for 
VAR service, Rate Schedule L-AS2, is unchanged from Western's current 
formula:

[[Page 5151]]

[GRAPHIC] [TIFF OMITTED] TN28JA11.019

TARRG = Total Annual Revenue Requirement for Generation
% of Resource = Percentage of Resource Capacity Used for VAR Support

    The numerator captures the percentage of annual generation plant 
costs which are used for this service. Net generation plant costs are 
multiplied by a fixed charge rate for generation to determine the 
TARRG. The percentage of TARRG which is included in the revenue 
requirement would be based on the nameplate capability of the 
generating units with regard to reactive and real power production. The 
TARRG would be multiplied by the complement of the weighted average 
power factor rating for generating units. For example, if the weighted 
average power factor is 98 percent, the numerator would include 2 
percent of the TARRG. This is a change in the process for collecting 
data inputs to the formula rate. In the current formula rate, the 
percentage of resource for a unit is calculated by measuring actual 
production of volt-amperes reactive and dividing by the unit nameplate 
power capability. The rate is applicable to all transmission 
transactions inside the WACM Balancing Authority in excess of any 
Federal entitlement. The charge for transmission of a customer's 
Federal entitlement would be included in the customers' firm electric 
service charges. Credit may be given to those customers with generators 
providing the WACM Balancing Authority with VAR support.

Proposed Formula Rate for Regulation and Frequency Response Service 
(Regulation Service)

    The proposed formula for Regulation Service, Rate Schedule L-AS3, 
would have 4 components:
    (1) Load-based Assessment.
    [GRAPHIC] [TIFF OMITTED] TN28JA11.020
    
    The rate applies to all entities' auxiliary load (total metered 
load less Federal entitlements) plus the nameplate of intermittent 
resources serving load inside the WACM Balancing Authority. Restricting 
this service to intermittent resources serving load inside the WACM 
Balancing Authority is a change from the current rate. See ``Exporting 
Intermittent Resource Requirement'' below. Otherwise, the formula is 
unchanged.
    The revenue requirement will include such costs as plant costs, 
purchases of a regulation product, purchases of power in support of the 
units' ability to regulate, purchases of transmission for regulating 
units that are trapped geographically inside another balancing 
authority, purchases of transmission required to relocate energy due to 
regulation/load following issues, and lost sales opportunities 
resulting from the requirement to generate at night to permit units to 
have `down' regulating capability.
    The methodology for determining annual plant costs is unchanged. 
First, the annual costs for plants used to regulate is calculated by 
multiplying the net plant costs by the fixed charge rate for 
generation. Then, the annual cost per unit of capacity for regulating 
plants is calculated by dividing the annual plant costs by the capacity 
of those plants. Next, the portion of the total annual plant costs to 
be recovered in the Regulation Service Rate is calculated by 
multiplying the annual unit cost by the amount of capacity required for 
regulation. The capacity required for regulation is subject to re-
evaluation every year.
    (2) Exporting Intermittent Resource Requirement. An entity that 
exports the output from an intermittent resource to another balancing 
authority will be required to dynamically meter or dynamically schedule 
that resource out of the WACM Balancing Authority to another balancing 
authority. An intermittent resource is a generator that is not 
dispatchable and cannot store its fuel source and, therefore, cannot 
respond to changes in system demand or to transmission security 
constraints.
    Western supports the installation of renewable sources of energy 
but recognizes that certain operational constraints exist in managing 
the significant fluctuations that are a normal part of their operation. 
Western has marketed the maximum practical amount of power from its 
projects, leaving little flexibility for additional balancing authority 
services. Consequently, Western will not regulate for the difference 
between the output of an intermittent generator located inside the WACM 
Balancing Authority and a delivery schedule from that generator serving 
load located outside the WACM Balancing Authority.
    (3) Self-Provision Using Automatic Generation Control (AGC). 
Western allows entities with automatic or manual generation control to 
self-provide for all or a portion of their loads. Entities with 
generation control are known as Sub-Balancing Authorities (SBA) and 
must meet all of the following criteria: A well-defined boundary, with 
revenue-quality metering that is approved by the WACM Balancing 
Authority, accurate as defined by NERC, and which includes megawatt 
(MW) flow data availability at 6-second or smaller intervals; AGC 
capability; and Demonstrated Regulation Service capability.
    Self-provision would be measured by use of the entity's 1-minute 
average Area Control Error (ACE) to determine the amount of Self-
provision. The assessment would be calculated every hour and the value 
of ACE would be used to calculate Regulation Service charges as 
follows:
    a. If the entity's 1-minute average ACE is <= than 0.5 percent of 
the entity's hourly average load, no Regulation Service charges would 
be assessed by the WACM Balancing Authority.
    b. If the entity's 1-minute average ACE is > 1.5 percent of the 
entity's hourly average load, the WACM Balancing Authority would assess 
Regulation Service charges to the entity's entire load, using the Load-
based Regulation Service rate.

[[Page 5152]]

    c. If the entity's 1-minute average ACE is > 0.5 percent of the 
entity's hourly average load, but < 1.5 percent of the entity's hourly 
average load, the WACM Balancing Authority would assess Regulation 
Service charges based on linear interpolation of zero charge and full 
charge, using the Load-based Regulation Service rate.
    This represents a change from the current formula. Under the 
current formula rate, the customer has the option of measuring Self-
provision by use of either the 1-minute average of its ACE or the 1-
minute average of the first derivative of its ACE.
    Western will monitor the entity's Self-provision on a regular 
basis. If Western determines that the entity has not been attempting to 
self-regulate, Western will, upon notification, employ the Load-based 
Assessment described in (1) above.
    (4) Other Self- or Third-party Supply. Western may allow an entity 
to supply some or all of its required regulation or contract with a 
third party to do so, even without well-defined boundary metering. The 
WACM Balancing Authority will evaluate the entity's metering, 
telecommunications and regulating resource, as well as the required 
level of regulation, and determine whether the entity qualifies to 
Self-supply under this provision. This is a new provision under the 
proposed formula rate.

Proposed Formula Rate for Energy Imbalance Service

    Western proposes to revise its formula rate for Energy Imbalance 
Service, Rate Schedule L-AS4, to be more consistent with Federal Energy 
Regulatory Commission (FERC) guidelines. Currently, Western calculates 
imbalances in two deviation bands and assesses a 25 percent penalty for 
hourly deviations in excess of 5 percent of metered load. Western 
proposes to implement a penalty and bandwidth structure with 3 
deviation bands as follows:
    (1) Imbalances of less than or equal to 1.5 percent of metered load 
(or 4 MW, whichever is greater) would be settled financially at 100 
percent of the WACM Balancing Authority pricing for that hour. Each 
hour will stand on its own--there will be no monthly netting. There is 
no change in the use of pricing. If the WACM Balancing Authority 
aggregate imbalance is a net over-delivery, sales pricing will be used; 
if the aggregate imbalance is a net under-delivery, purchase pricing 
will be used.
    (2) Imbalances between 1.5 percent and 7.5 percent of metered load 
(or 4 to 10 MW, whichever is greater) would be settled financially at 
90 percent of the WACM Balancing Authority hourly sales price for over-
scheduling imbalances or 110 percent of the WACM Balancing Authority 
hourly purchase price for under-scheduling imbalances.
    (3) Imbalances greater than 7.5 percent of metered load (or 10 MW, 
whichever is greater) would be settled financially at 75 percent of the 
WACM Balancing Authority hourly sales price for over-scheduling 
imbalances or 125 percent of the WACM Balancing Authority hourly 
purchase price for under-scheduling imbalances.
    Western is proposing to assess an administrative charge on each 
monthly settlement under this service. Western would establish a pool 
of costs to be recovered to include, but not be limited to, salaries 
for personnel administering this service. Western would then calculate 
the ratio of this amount to the absolute value of all Energy Imbalance 
Service settlements for the most current year for which data is 
available. This percentage will be applied to the amount of each 
monthly settlement, reducing payments and increasing charges to the 
customer.

Proposed Formula Rate for Generator Imbalance Service

    Western is proposing a new Generator Imbalance Service Formula 
Rate, Rate Schedule L-AS9, pursuant to FERC guidelines. This service 
would be provided to the following customers:
    (1) Multi-party generators whose output is shared by several 
entities. If the operator of the generator prefers, the generator's 
output will be allocated among the unit participants and included in 
the Energy Imbalance Service calculations for those participants.
    (2) Intermittent resources serving load inside the WACM Balancing 
Authority.
    An entity's solely-owned non-intermittent resource inside the WACM 
Balancing Authority would be included in the entity's Energy Imbalance 
Service calculation.
    Western has marketed the maximum amount of capacity from its 
projects, leaving little flexibility for additional WACM Balancing 
Authority services. Consequently, Western will not regulate for the 
difference between the output of an intermittent generator located 
within the WACM Balancing Authority and a delivery schedule from that 
generator serving load located outside the WACM Balancing Authority. 
Intermittent generators serving load outside the WACM Balancing 
Authority would be required to dynamically meter or dynamically 
schedule their generation to another balancing authority. An 
intermittent resource is a generator that is not dispatchable and 
cannot store its fuel source and, therefore, cannot respond to changes 
in system demand or to transmission security constraints (see 
discussion on the proposed formula rate for Regulation Service).
    The formula rate for Generator Imbalance Service would be identical 
to that for Energy Imbalance Service, with the following exceptions:
    (1) Bandwidths would be calculated as a percentage of metered 
generation, since there is no load.
    (2) Intermittent resources would be exempt from the outer 
bandwidth. All deviations greater than 1.5 percent of metered 
generation will be subject only to a 10 percent penalty.
    In any hour, Western may charge a customer a penalty for either 
Generator Imbalance Service under Rate Schedule L-AS9 or Energy 
Imbalance Service under Rate Schedule L-AS4, but not both, unless the 
imbalances aggravate rather than offset each other.
    Generator Imbalance Service calculations would be included with 
Energy Imbalance Service calculations in the allocation of a single 
pool of administrative costs.

Proposed Rate Schedules for Operating Reserves Service--Spinning and 
Supplemental

    The proposed rate schedules for Spinning and Supplemental Reserves, 
Rate Schedules L-AS5 and L-AS6 are unchanged. The WACM Balancing 
Authority has no reserves available for sale. However, at a customer's 
request, the WACM Balancing Authority will purchase reserves and, if 
necessary, activation energy and pass the cost, plus a fee for 
administration, through to the customer. For all reserves purchased, 
the customer will be responsible for purchasing adequate transmission 
to support the purchase.

Rate Comparison

    Following is a table which compares the proposed formula rates for 
FY 2012 with the current formula rates for FY 2011:

[[Page 5153]]



                                          Formula Rate Comparison Table
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                                    Proposed Rate Schedule and estimated
         Class of service            rate  effective October 1, 2011 \1\      Existing Rate Schedule and rate
                                                  (FY 2012)                 effective October 1, 2010 (FY 2011)
----------------------------------------------------------------------------------------------------------------
Network Transmission Service.....  L-NT1                                   L-NT1.
                                   Load ratio share of 1/12 of the         Load ratio share of 1/12 of the
                                    revenue requirement of $56,146,133      revenue requirement of $48,000,660.
Firm Point-to-Point Transmission   L-FPT1                                  L-FPT1.
 Service.                          $3.45/kW-month                          $3.18/kW-month
                                                                           Unauthorized Use Penalty of 150% of
                                                                            demand charge, with a maximum of
                                                                            monthly service.
Non-Firm Point-to-Point            L-NFPT1                                 L-NFPT1.
 Transmission Service.             Maximum of 4.73 mills/kWh               Maximum of 4.17 mills/kWh
                                                                           Unauthorized Use Penalty of 150% of
                                                                            demand charge, with a maximum of
                                                                            monthly service.
Scheduling, System Control, and    L-AS1                                   L-AS1.
 Dispatch Service.                 $24.03 per schedule per day for non-    $38.30 per tag per day for non-
                                    transmission customers.                 transmission customers.
Reactive Supply and Voltage        L-AS2                                   L-AS2.
 Control from Generation or Other  $0.318/kW-month                         $0.180/kW-month.
 Sources Service.
Regulation and Frequency Response  L-AS3                                   L-AS3.
 Service.                          $0.322/kW-month                         $0.339/kW-month.
Energy Imbalance Service.........  L-AS4                                   L-AS4.
                                   --Imbalances less than or equal to      --Imbalances less than or equal to 5%
                                    1.5% (minimum 4 MW) of metered load     (minimum 4 MW) of metered load
                                    settled using WACM hourly pricing       settled using WACM pricing with no
                                    with no penalty.                        penalty.
                                   --Imbalances 1.5% to 7.5% (minimum 4    --Imbalances greater than 5% of
                                    MW to 10 MW) of metered load settled    metered load settled using WACM
                                    using WACM hourly pricing with a 10%    pricing with a 10% penalty.
                                    penalty.
                                   --Imbalances greater than 7.5%
                                    (minimum
                                   10 MW) of metered load settled using
                                    WACM hourly pricing with a 25%
                                    penalty.
                                   --Administrative fee charged on every
                                    settlement.
Operating Reserves Service--       L-AS5, L-AS6                            L-AS5, L-AS6.
 Spinning and Supplemental.        Long-term reserves are not available    Long-term reserves are not available
                                    from WACM. Reserves may be provided     from WACM. Reserves may be provided
                                    on a pass-though cost, plus an amount   on a pass-though cost, plus an
                                    for administration.                     amount for administration.
Transmission Losses Service......  L-AS7                                   L-AS7
                                   Transmission losses may be settled      Transmission losses may be settled
                                    either financially or with energy.      either financially or with energy.
                                    Insufficient losses supplied will be    Insufficient losses supplied will be
                                    settled financially by default          settled financially by default.
                                   All customers will have the option to   All customers will have the option to
                                    return the loss obligation for both     return the loss obligation for both
                                    prescheduled and real-time              prescheduled and real-time
                                    transactions 7 days later, same         transactions 7 days later, same
                                    profile                                 profile.
                                   Pricing used is WACM weighted average   Pricing used is LAP weighted average
                                    hourly purchase price.                  hourly purchase price.
Generator Imbalance Service......  L-AS9                                   Provided Under Rate Schedule L-AS4.
                                   --Imbalances less than or equal to
                                    1.5% (minimum 4 MW) of metered
                                    generation settled using WACM hourly
                                    pricing with no penalty.
                                   --Imbalances 1.5% to 7.5% (minimum 4
                                    MW to 10 MW) of metered generation
                                    settled using WACM hourly pricing
                                    with a 10% penalty.
                                   --Imbalances greater than 7.5%
                                    (minimum 10 MW) of metered generation
                                    settled using WACM hourly pricing
                                    with a 25% penalty.
                                   --Intermittent Resources not subject
                                    to 3rd band penalties.
                                   --Administrative fee charged on every
                                    settlement.
Penalty Rate for Unreserved Use    L-AS10                                  Provided Under Rate Schedules L-FPT1
 of Transmission Service.          Penalized 200% of demand charge, with    and L-NFPT1.
                                    a maximum of monthly service.
----------------------------------------------------------------------------------------------------------------
\1\ Rates effective October 1, 2011, are preliminary and are subject to change upon publication of final formula
  rates.

Legal Authority

    Because the proposed formula rates constitute a major rate 
adjustment as defined by 10 CFR part 903, Western will hold both a 
public information forum and a public comment forum. After review of 
public comments, Western will take further action on the proposed 
formula rates consistent with 10 CFR part 903.
    Western is proposing LAP Transmission and WACM Ancillary

[[Page 5154]]

Services formula rates under the Department of Energy (DOE) 
Organization Act (42 U.S.C. 7152); the Reclamation Act of 1902 (ch. 
1093, 32 Stat. 388), as amended and supplemented by subsequent 
enactments, particularly section 9(c) of the Reclamation Project Act of 
1939 (43 U.S.C. 485h(c)); section 5 of the Flood Control Act of 1944 
(16 U.S.C. 825s); and other acts specifically applicable 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 FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that Western initiates or uses to develop the proposed 
formula rates are available for inspection and copying at the Rocky 
Mountain Regional Office, located at 5555 East Crossroads Boulevard, 
Loveland CO. Many of these documents and supporting information are 
also available on Western's Web site under the 2012 Rate Adjustment--
Transmission and Ancillary Services section located at http://www.wapa.gov/rm/ratesRM/2012/default.htm.

Ratemaking 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: January 21, 2011.
Timothy J. Meeks,
Administrator.
[FR Doc. 2011-1894 Filed 1-27-11; 8:45 am]
BILLING CODE 6450-01-P