[Federal Register Volume 76, Number 96 (Wednesday, May 18, 2011)]
[Notices]
[Pages 28767-28768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-12189]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Customer Service Region-Rate Order No. WAPA-152

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Rate Order Temporarily Extending Network Integration 
Transmission Service (NITS).

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SUMMARY: This action is to temporarily extend the existing NITS formula 
rates for the Parker-Davis Project (P-DP), and the Pacific Northwest/
Pacific Southwest Intertie Project (Intertie) and Ancillary Services 
Rates for Western Area Lower Colorado (WALC) Balancing Authority 
through September 30, 2013. The existing NITS and Ancillary Services 
formula rates expire on June 30, 2011.

FOR FURTHER INFORMATION CONTACT: Mr. Darrick Moe, Regional Manager, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2522, 
e-mail [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, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated: (1) The authority 
to develop power and transmission rates to the Administrator of the 
Western Area Power Administration (Western); (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to the Federal Energy Regulatory Commission 
(FERC).
    The existing formula rates, approved under Rate Order No. WAPA-127 
\1\ became effective on July 1, 2006, and were approved through June 
30, 2011. The existing rate formula methodology collects annual revenue 
sufficient to recover annual expenses, including interest and capital 
requirements, thus ensuring repayment of the project costs within the 
cost recovery criteria set forth in DOE Order RA 6120.2. Western also 
made the decision that the Desert Southwest and Rocky Mountain Regional 
Offices would work together in an attempt to make their Ancillary 
Service rate formulas consistent to the extent possible as a result of 
the operations consolidation of the two Regions. As a result, pursuant 
to 10 CFR 903.23(b), Western is temporarily extending the existing NITS 
formula rates for P-DP and Intertie, and WALC Ancillary Services 
formula rates, through September 30, 2013, unless the rate schedules 
are superseded prior to that date. This extension will provide the time 
Western needs to complete the informal and formal processes associated 
with the new rate formulas.
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    \1\ FERC confirmed and approved Rate Order No. WAPA-127 on 
November 21, 2006, in Docket No. EF06-5191-000. See United States 
Department of Energy, Western Area Power Administration, 117 FERC ] 
62,172 (2006).
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    DOE regulations at 10 CFR 903.23(b) do not require Western to 
provide for a consultation and comment period or hold public 
information and comment forums. Following review of Western's proposal 
with DOE, I hereby approve Rate Order No. WAPA-152, which temporarily 
extends the existing NITS and Ancillary Services rate schedules PD-
NTS2, INT-NTS2 and DSW-SD2, DSW-RS2, DSW-FR2, DSW-EI2, DSW-SPR2, DSW-
SUR2 through September 30, 2013.

    Dated: May 6, 2011.
Daniel B. Poneman,
Deputy Secretary.
Department of Energy Deputy Secretary

[Rate Order No. WAPA-152]

    In the Matter of: Western Area Power Administration, Rate 
Extension for Desert Southwest Region Network Integration 
Transmission Service and WALC Ancillary Services Formula Rates.

Order Confirming and Approving a Temporary Extension of the Network 
Integration Transmission Service and Ancillary Services Formula Rates

    Section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152) transferred to and vested in the Deputy 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 the Administrator of the Western Area Power 
Administration (Western); (2) the authority to confirm, approve, and 
place such rates into effect on an interim basis to the Deputy 
Secretary of Energy; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand, or to disapprove such 
rates to the Federal Energy Regulatory Commission (FERC). This rate 
extension is issued pursuant to the Delegation Order and DOE rate 
extension procedures at 10 CFR 903.23(b).

Background

    Under Rate Order No. WAPA-127 the existing formula rates were 
approved for

[[Page 28768]]

5 years effective July 1, 2006, through September 30, 2011. On June 30, 
2011, the Network Integration Transmission Service (NITS) and Ancillary 
Services Rate Schedules will expire. Western is temporarily extending 
the NITS and Ancillary Services formula rates and rate schedules 
through September 30, 2013.

Discussion

    Western is temporarily extending the existing P-DP and Intertie 
NITS and Ancillary Services formula rates for Western Area Lower 
Colorado (WALC) Balancing Authority pursuant to 10 CFR 903.23(b). The 
existing rate formula methodologies collect annual revenue sufficient 
to recover annual expenses (including interest) and capital 
requirements, thus ensuring repayment of the projects costs within the 
cost recovery criteria set forth in DOE Order RA 6120.2. Western has 
made the decision that the Desert Southwest and Rocky Mountain Region 
Regional Offices would work together in an attempt to make their 
Ancillary Services rate formulas consistent to the extent possible as a 
result of the operations consolidation of the two regions. Western is 
providing for this extension to allow for the evaluation of new rate 
requirements for Ancillary Services mandated under Western's Open 
Access Transmission Tariff and FERC Order No. 890 and adjustments to 
the formula rates. For these reasons, Western is temporarily extending 
the existing rate schedules PD-NTS2, INT-NTS2 and DSW-SD2, DSW-RS2, 
DSW-FR2, DSW-EI2, DSW-SPR2, DSW-SUR2 for NITS and Ancillary Services 
through September 30, 2013.
    DOE regulations at 10 CFR 903.23(b) do not require Western to 
provide for a consultation and comment period or hold public 
information and comment forums and no such consultation and comment 
period or forums were provided for or held.

Order

    In view of the above and under the authority delegated to me, I 
hereby extend for a period effective July 1, 2011, through September 
30, 2013, the existing rate schedules PD-NTS2, INT-NTS2 and DSW-SD2, 
DSW-RS2, DSW-FR2, DSW-EI2, DSW-SPR2, DSW-SUR2 for NITS and WALC 
Ancillary Services.

Dated: May 6, 2011.

Daniel B. Poneman,

Deputy Secretary.

[FR Doc. 2011-12189 Filed 5-17-11; 8:45 am]
BILLING CODE 6450-01-P