[Federal Register Volume 76, Number 177 (Tuesday, September 13, 2011)]
[Notices]
[Pages 56433-56452]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-23391]


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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 Order Concerning Transmission and Ancillary Services 
Formula Rates.

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SUMMARY: The Deputy Secretary of Energy has confirmed and approved Rate 
Order No. WAPA-155 and Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-
AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-UU1, placing 
Loveland Area Projects (LAP) transmission and Western Area Colorado 
Missouri (WACM) Balancing Authority ancillary services formula rates 
into effect on an interim basis. The provisional formula 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 formula rates. The provisional formula 
rates will provide sufficient revenue to pay all annual costs, 
including interest expense, and to repay power investment within the 
allowable periods.

DATES: Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS3, L-
AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-UU1 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, 2011, and will remain in effect until 
FERC confirms, approves, and places the rate schedules into effect on a 
final basis for a 5-year period ending September 30, 2016, or until the 
rate schedules are superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Bradley S. Warren, Regional 
Manager, Rocky Mountain Customer Service Region, Western Area Power 
Administration, 5555 East Crossroads Boulevard, Loveland, CO 80538-
8986, telephone (970) 461-7201, or Mrs. Sheila D. Cook, Rates Manager, 
Rocky Mountain Customer Service Region, Western Area Power 
Administration, 5555 East Crossroads Boulevard, Loveland, CO 80538-
8986, telephone (970) 461-7211, e-mail [email protected].

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved 
current Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS3, L-
AS4, L-AS5, L-AS6, and L-AS7 on December 30, 2003 (Rate Order No. WAPA-
106, 69 FR 1723, January 12, 2004).\1\ These rates 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 on June 1, 
2006, with an expiration date of May 31, 2011. Under Rate Order No. 
WAPA-154,\4\ all LAP transmission and WACM ancillary services rate 
schedules, including L-

[[Page 56434]]

AS3, were extended through February 28, 2013.
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    \1\ WAPA-106 was approved by FERC on a final basis on January 
31, 2005, in Docket No. EF2-04-5182-000 (110 FERC ]62,084).
    \2\ WAPA-141, Extension of Rate Order No. WAPA-106 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 
through February 28, 2013. 76 FR 1429, January 10, 2011.
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LAP Transmission Service

    Rate Schedules L-NT1, L-FPT1, and L-NFPT1 for LAP transmission 
services are based on a revenue requirement that recovers the LAP 
transmission system costs for facilities associated with providing all 
transmission services as well as the non-transmission facility costs 
allocated to transmission services. These firm and non-firm LAP 
transmission service rates include the costs for scheduling, system 
control, and dispatch service needed to provide the transmission 
service.
    Rate Schedule L-UU1, Unreserved Use Penalties, is a new rate 
schedule established in accordance with Western's Open Access 
Transmission Tariff (Tariff). This rate will recover costs for 
transmission service that has not been reserved or has been used in 
excess of the amount reserved. Rate Schedule L-UU1 also provides for a 
penalty in addition to the base charge for the transmission service 
used. Previously, a penalty for unauthorized use of transmission was 
included in the Point-to-Point Transmission Service, Rate Schedules L-
FPT1 and L-NFPT1.
    Rate Schedule L-AS7, Transmission Losses Service, is designed to 
recover losses on all real-time and prescheduled transactions on 
transmission facilities inside WACM.

Ancillary Services

    Western will provide seven ancillary services pursuant to its 
Tariff. These are: (1) Scheduling, System Control, and Dispatch Service 
(L-AS1); (2) Reactive Supply and Voltage Control from Generation or 
Other Sources Service (L-AS2); (3) Regulation and Frequency Response 
Service (L-AS3); (4) Energy Imbalance Service (L-AS4); (5) Spinning 
Reserve Service (L-AS5); (6) Supplemental Reserve Service (L-AS6); and 
(7) Generator Imbalance Service (L-AS9). Generator Imbalance Service is 
also a new rate schedule established under the Tariff. Currently, 
Generator Imbalance Service is provided under Rate Schedule L-AS4, 
Energy Imbalance Service.
    Rates for LAP transmission and ancillary services will be 
recalculated each year to incorporate the most recent financial, load, 
and schedule information and will be applicable to all transmission and 
ancillary services customers.
    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 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 FERC. Existing Department of Energy 
procedures for public participation in power rate adjustments (10 CFR 
903) were published on September 18, 1985 (50 FR 37835).
    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-155, the proposed LAP transmission and WACM ancillary 
services formula rates, into effect on an interim basis. By this order, 
I am placing the rates into effect in less than 30 days to meet 
contract deadlines, to avoid financial difficulties, and to provide 
rates for new services. The revised Rate Schedules L-NT1, L-FPT1, L-
NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-
UU1 will be submitted promptly to FERC for confirmation and approval on 
a final basis.

    Dated: September 2, 2011.
Daniel B. Poneman,
Deputy Secretary.

Order Confirming, Approving, and Placing The Loveland Area Projects 
Transmission and Western Area Colorado Missouri Balancing Authority 
Ancillary Services Formula Rates Into Effect on an Interim Basis

    These transmission and ancillary services formula rates are 
established pursuant to 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 Interior and the Bureau of Reclamation (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 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 the Administrator of 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). Existing DOE procedures for public participation in power rate 
adjustments (10 CFR part 903) were published on September 18, 1985.

Acronyms/Terms and Definitions

    As used in this Rate Order, the following acronyms/terms and 
definitions apply:

[[Page 56435]]



------------------------------------------------------------------------
              Acronym/term                          Definition
------------------------------------------------------------------------
$/kW-month:............................  Dollars per kilowatt per month.
12-cp:.................................  Rolling 12-month average of
                                          customers' loads in excess of
                                          Federal Entitlement,
                                          coincident with the Loveland
                                          Area Projects (LAP)
                                          transmission system peak.
Administrator:.........................  The Administrator of the
                                          Western Area Power
                                          Administration.
Area Control Error (ACE):..............  The instantaneous difference
                                          between a Balancing
                                          Authority's net actual and
                                          scheduled interchange, taking
                                          into account the effects of
                                          frequency bias and correction
                                          for meter error.
Ancillary Services:....................  Those services that are
                                          necessary to support the
                                          transmission of capacity and
                                          energy from resources to loads
                                          while maintaining reliable
                                          operation of the Transmission
                                          Provider's transmission system
                                          in accordance with good
                                          utility practice.
ATRR:..................................  Annual transmission revenue
                                          requirement.
Automatic Generation Control:..........  Equipment that automatically
                                          adjusts generation in a
                                          Balancing Authority area from
                                          a central location to maintain
                                          the Balancing Authority's
                                          interchange schedule plus
                                          frequency bias.
Balancing Authority:...................  The responsible entity that
                                          integrates resource plans
                                          ahead of time, maintains load-
                                          interchange-generation balance
                                          within a Balancing Authority
                                          area, and supports
                                          interconnection frequency in
                                          real time.
Control Area:..........................  The term used for a Balancing
                                          Authority area in Western's
                                          Open Access Transmission
                                          Tariff.
CRSP:..................................  Colorado River Storage Project.
DOE:...................................  Department of Energy.
Energy Imbalance Service:..............  The ancillary service in which
                                          the Balancing Authority
                                          corrects hourly for the
                                          difference between a
                                          customer's energy supply and
                                          energy usage.
Federal Customers:.....................  LAP customers taking delivery
                                          of long-term firm service
                                          under firm electric service
                                          contracts, project use, and
                                          special use contracts.
Firm Electric Service Contracts:.......  Contracts for the sale of long-
                                          term firm LAP Federal energy
                                          and capacity, pursuant to the
                                          Post-1989 General Power
                                          Marketing and Allocation
                                          Criteria (Marketing Plan).
Firm Point-to-Point Transmission         The highest priority
 Service:.                                transmission service offered
                                          to customers on a specified
                                          path that anticipates no
                                          planned interruption.
Federal Entitlements:..................  The energy and capacity
                                          delivered to Federal Customers
                                          under Firm Electric Service
                                          Contracts.
FERC:..................................  Federal Energy Regulatory
                                          Commission.
Fry-Ark:...............................  Fryingpan-Arkansas Project.
FY:....................................  Fiscal Year, October 1 through
                                          September 30.
Generator Imbalance Service:...........  The ancillary service in which
                                          the Balancing Authority
                                          corrects hourly for the
                                          difference between a
                                          customer's actual generation
                                          and scheduled generation.
kW:....................................  Kilowatt. The electrical unit
                                          of capacity equal to 1,000
                                          watts.
kWh:...................................  Kilowatt-hour. The electrical
                                          unit of energy equal to 1 kW
                                          produced or delivered for 1
                                          hour.
kW-month:..............................  Kilowatt-month. The electrical
                                          unit of energy equal to 1 kW
                                          produced or delivered for 1
                                          month.
LAP:...................................  Loveland Area Projects.
LAP Transmission System or Service:....  Transmission system operated
                                          by, or service provided by,
                                          the Loveland Area Projects.
LAP Transmission System Total Load:....  Sum of 12-cp averages for all
                                          customer loads for Network
                                          Integration Transmission
                                          Service, plus 12-month rolling
                                          average of monthly
                                          entitlements of Federal
                                          Customers, plus reserved
                                          capacity for all Long-Term
                                          Firm Point-to-Point
                                          Transmission Service.
Load ratio share:......................  Network Transmission Customer's
                                          12-cp load coincident with
                                          LAP's monthly transmission
                                          system peak, expressed as a
                                          ratio.
Load Serving Entity (LSE):.............  An entity within the Balancing
                                          Authority that secures energy
                                          and transmission service (and
                                          related interconnected
                                          operations services) to serve
                                          the electrical demand and
                                          energy requirements of its end-
                                          use customers.
Long-Term Firm Point-to-Point            Firm Point-to-Point
 Transmission Service:.                   Transmission Service
                                          reservation for a duration of
                                          at least 12 consecutive
                                          months.
Losses:................................  The reduction of power being
                                          delivered as it moves across
                                          transmission lines or other
                                          equipment, due to resistance
                                          in the conducting material.
M&I:...................................  Municipal and Industrial.
Mill:..................................  Unit of monetary value equal to
                                          .001 of a U.S. dollar; i.e., 1/
                                          10th of a cent.
Mills/kWh:.............................  Mills per kilowatt-hour.
Monthly Entitlements:..................  Maximum capacity to be
                                          delivered each month under
                                          Firm Electric Service
                                          Contracts. Each monthly
                                          entitlement is a percentage of
                                          the seasonal contract-rate-of-
                                          delivery.
MW:....................................  Megawatt. The unit of
                                          electrical capacity that
                                          equals 1,000 kW or 1,000,000
                                          watts.
NERC:..................................  North American Electric
                                          Reliability Corporation.
Network Integration Transmission         Firm transmission service for
 Service:.                                the delivery of capacity and
                                          energy from designated network
                                          resources to designated
                                          network loads not using one
                                          specific path.
Non-Firm Point-to-Point Transmission     Point-to-point transmission
 Service:.                                service reserved on an as-
                                          available basis for periods
                                          ranging from 1 hour to 1 year.
Open Access Same Time Information        An electronic posting system
 System (OASIS):.                         that the Transmission Provider
                                          maintains for transmission
                                          access data that allows all
                                          transmission customers to view
                                          the data simultaneously.
Operating Reserve--Spinning Reserve      Generation capacity needed to
 Service:.                                serve load immediately in the
                                          event of a system contingency.
                                          Spinning Reserve Service may
                                          be provided by generating
                                          units that are on-line and
                                          loaded at less than maximum
                                          output.

[[Page 56436]]

 
Operating Reserve--Supplemental Reserve  Generation capacity needed to
 Service:.                                serve load in the event of a
                                          system contingency, which
                                          capacity is not available
                                          immediately to serve load but
                                          rather within a short period
                                          of time. Supplemental Reserve
                                          Service may be provided by
                                          generation units that are on-
                                          line but unloaded, by quick
                                          start generation, or by
                                          interruptible load.
Provisional Formula Rate:..............  A formula rate that has been
                                          confirmed, approved, and
                                          placed into effect on an
                                          interim basis by the Deputy
                                          Secretary.
P-SMBP:................................  Pick-Sloan Missouri Basin
                                          Program.
P-SMBP--WD:............................  Pick-Sloan Missouri Basin
                                          Program--Western Division.
RMR:...................................  Rocky Mountain Customer Service
                                          Region.
Reactive Supply and Voltage Control      The ancillary service under
 from Generation or Other Sources         which a Balancing Authority
 Service:.                                operates generation facilities
                                          under its control to produce
                                          or absorb reactive power to
                                          maintain voltages on all
                                          transmission facilities within
                                          acceptable limits.
Reclamation:...........................  The United States Bureau of
                                          Reclamation.
Regulation and Frequency Response        The ancillary service under
 Service:.                                which a Balancing Authority
                                          maintains moment-by-moment
                                          load-interchange-generation
                                          balance with the Balancing
                                          Authority area and supports
                                          interconnection frequency.
Scheduling, System Control, and          The ancillary service under
 Dispatch Service:.                       which a Balancing Authority
                                          sets up an arrangement for an
                                          energy interchange transaction
                                          for delivery and receipt of
                                          energy between the two
                                          entities involved in the
                                          transaction.
Service Agreement:.....................  The initial agreement and any
                                          amendments or supplements
                                          entered into by a Transmission
                                          Customer and Western for
                                          service under the Tariff.
Short-Term Firm Point-to-Point           Firm Point-to-Point
 Transmission Service:.                   Transmission Service for a
                                          duration of less than 12
                                          consecutive months.
Sub-Balancing Authority:...............  An area within a Balancing
                                          Authority area which has its
                                          own boundary metering scheme
                                          and for which an ACE can be
                                          measured.
Tariff:................................  Western's revised Open Access
                                          Transmission Service Tariff,
                                          effective December 1, 2009
                                          (Docket NJ10-1-000).
Transmission Customer:.................  The RMR customer taking Network
                                          Integration Transmission
                                          Service or Point-to-Point
                                          Transmission Service.
Transmission Losses Service:...........  The service provided by the
                                          Balancing Authority to supply
                                          electrical losses on pre-
                                          scheduled and real-time
                                          transmission transactions.
Transmission Provider:.................  An entity that administers a
                                          transmission tariff and
                                          provides transmission service
                                          to transmission customers
                                          under applicable transmission
                                          service agreements.
Unreserved Use Penalties:..............  The use of transmission
                                          capacity that was not
                                          reserved, or the use of
                                          transmission in excess of
                                          reserved capacity.
WACM:..................................  Western Area Colorado Missouri
                                          Balancing Authority.
WECC:..................................  Western Electricity
                                          Coordinating Council.
Western:...............................  Western Area Power
                                          Administration.
------------------------------------------------------------------------

Effective Date

    The Provisional Formula Rates will take effect on the first day of 
the first full billing period beginning on or after October 1, 2011, 
and will remain in effect through September 30, 2016, pending approval 
by FERC on a final basis.

Public Notice and Comment

    Western has followed the Procedures for Public Participation in 
Power and Transmission Rate Adjustments and Extensions, 10 CFR part 
903, in the development of these formula rates and schedules. The steps 
Western took to involve interested parties in the rate process were:
    1. On September 29, 2010, Western held an informal meeting with 
customers and interested parties to discuss the proposed formula rates 
for LAP Transmission and WACM Ancillary Services. Western posted all 
information presented at the informal meeting, as well as responses to 
questions asked at the meeting, on its Web site at http://www.wapa.gov/rm/ratesRM/2012/default.htm.
    2. Western published a Federal Register notice on January 28, 2011 
(76 FR 5148), officially announcing the proposed LAP Transmission and 
WACM Ancillary Services formula rates adjustment, initiating the public 
consultation and comment period, announcing the date and location of 
the public information and public comment forums, and outlining 
procedures for public participation.
    3. On February 2, 2011, Western sent a letter to all interested 
parties providing them with a copy of the Federal Register notice 
published on January 28, 2011 (76 FR 5148).
    4. On March 9, 2011, Western held its public information forum in 
Loveland, Colorado, where Western representatives explained the need 
for the formula rates adjustment in detail and answered questions.
    5. On March 9, 2011, following the public information forum, 
Western held a public comment forum in Loveland, Colorado, to provide 
an opportunity for customers and other interested parties to comment 
for the record. At this forum, one individual expressed general support 
of Western's efforts to communicate with its customers well in advance 
of implementation of the proposed rates.
    6. Western received one written comment during the 90-day 
consultation and comment period, which ended on April 28, 2011. This 
comment is addressed below following the ancillary services discussion.

All comments received have been considered in the preparation of this 
Rate Order.

Project Descriptions

    The Post-1989 General Power Marketing and Allocation Criteria, 
published in the Federal Register on January 31, 1986 (51 FR 4012), 
integrated the resources of the P-SMBP--WD and Fry-Ark. This 
operational and contractual integration, known as LAP, allowed an 
increase in marketable resources, simplified contract administration, 
and established a blended rate for LAP power sales. WACM offers 
Ancillary Services from a combination of all LAP generation resources 
and some CRSP generation resources.

[[Page 56437]]

P-SMBP--WD

    The P-SMBP was authorized by Congress in section 9 of the Flood 
Control Act of December 22, 1944 (Pub. L. 534, 58 Stat. 877, 891). This 
multipurpose program provides flood control, M&I water supply, 
irrigation, navigation, recreation, preservation and enhancement of 
fish and wildlife, and hydroelectric power. Multipurpose projects have 
been developed on the Missouri River and its tributaries in Colorado, 
Montana, Nebraska, North Dakota, South Dakota, and Wyoming.
    In addition to the multipurpose water projects authorized by 
section 9 of the Flood Control Act of 1944, certain other existing 
projects have been integrated with the P-SMBP for power marketing, 
operation, and repayment purposes. The Colorado-Big Thompson, Kendrick, 
Riverton, and Shoshone Projects were combined with P-SMBP in 1954, 
followed by the North Platte Project in 1959. These projects are known 
as the ``Integrated Projects'' of the P-SMBP. The Riverton Project was 
reauthorized as a unit of the P-SMBP in 1970. Together, the P-SMBP--WD 
and the Integrated Projects have 19 power plants.
    There are six power plants in P-SMBP--WD: Glendo, Kortes, and 
Fremont Canyon power plants on the North Platte River; Boysen and Pilot 
Butte power plants on the Wind River; and Yellowtail power plant on the 
Big Horn River. The Colorado-Big Thompson Project has six power plants: 
Green Mountain power plant on the Blue River is on the West Slope of 
the Continental Divide; and Mary's Lake, Estes, Pole Hill, Flatiron, 
and Big Thompson power plants along the Big Thompson River are on the 
East Slope of the Continental Divide. The Kendrick Project has two 
power plants: Alcova and Seminoe power plants on the North Platte 
River. Power plants in the Shoshone Project are the Shoshone, Buffalo 
Bill, Heart Mountain, and Spirit Mountain plants on the Shoshone River. 
The only power plant in the North Platte Project is the Guernsey power 
plant, also on the North Platte River.

Fry-Ark

    Fry-Ark is a trans-mountain diversion development in southeastern 
Colorado authorized by the Act of Congress on August 16, 1962 (Pub. L. 
87-590, 76 Stat. 389, as amended by Title XI of the Act of Congress on 
October 27, 1974 (Pub. L. 93-493, 88 Stat. 1486, 1497)). The Fry-Ark 
diverts water from the Fryingpan River and other tributaries of the 
Roaring Fork River in the Colorado River Basin on the West Slope of the 
Rocky Mountains to the Arkansas River on the East Slope. The water 
diverted from the West Slope, together with regulated Arkansas River 
water, provides supplemental irrigation and M&I water supplies and 
produces hydroelectric power. Flood control, fish and wildlife 
enhancement, and recreation are other important purposes of Fry-Ark. 
The only generating facility in Fry-Ark is the Mt. Elbert Pumped-
Storage power plant on the East Slope.

CRSP

    CRSP was authorized by the Colorado River Storage Project Act, ch. 
203, 70 Stat. 105, on April 11, 1956. The project provides water-use 
developments for states in the Upper Basin (Colorado, New Mexico, Utah, 
and Wyoming) while still maintaining water deliveries to the states of 
the Lower Basin (Arizona, California, and Nevada) as required by the 
Colorado River Compact of 1922. CRSP hydroelectric facilities providing 
ancillary services for WACM are the Aspinall power plant (formerly 
Curecanti) on the Gunnison River, the Flaming Gorge power plant on the 
Green River, the Towaoc Power Plant on the Towaoc Canal in southwestern 
Colorado, and the Glen Canyon power plant on the Colorado River.

LAP Transmission Service

    Transmission formula rates, including those for Firm and Non-Firm 
Point-to-Point Transmission Service and Network Integration 
Transmission Service, are designed to recover the annual costs of the 
LAP Transmission System. The transmission rates include the cost of 
Scheduling, System Control, and Dispatch Service. Western will continue 
to bundle transmission service for delivery of LAP long-term firm 
Federal power to Federal Customers in the firm electric service rate 
under existing Firm Electric Service Contracts that expire in 2024.
    The penalty for unauthorized use of transmission, currently 
assessed under the Point-to-Point Transmission rate schedules, will now 
be assessed as a penalty for unreserved use under a separate rate 
schedule, L-UU1. Unreserved Use Penalties will include the basic rate 
for the transmission service used and not reserved, plus a penalty 
equal to the basic rate.
    Transmission losses are assessed for all real-time and prescheduled 
transactions on transmission facilities inside WACM. The current loss 
factor, as posted on the RMR OASIS, is 4.5 percent.

WACM Ancillary Services

    Western will offer seven Ancillary Services pursuant to its Tariff. 
The seven Ancillary Services are: (1) Scheduling, System Control, and 
Dispatch Service (SSCD Service); (2) Reactive Supply and Voltage 
Control from Generation or Other Sources Service (VAR Support Service); 
(3) Regulation and Frequency Response Service (Regulation Service); (4) 
Energy Imbalance Service; (5) Spinning Reserve Service; (6) 
Supplemental Reserve Service; and (7) Generator Imbalance Service. 
Generator Imbalance Service, currently provided as part of Rate 
Schedule L-AS4 for Energy Imbalance Service, is a new service under the 
Tariff. The Ancillary Services formula rates are designed to recover 
only the costs incurred for providing the service(s).

Comparison of Existing and Provisional Formula Rates for Transmission 
and Ancillary Services

    The following table displays a comparison of existing formula rates 
and the Provisional Formula Rates for FY 2012. These rates will be 
recalculated annually based on updated financial, schedule, and load 
data.

                                          Formula Rate Comparison Table
----------------------------------------------------------------------------------------------------------------
                                 Provisional formula rates effective        Existing formula rates effective
      Class of service               October 1, 2011  (FY 2012)                October 1, 2010  (FY 2011)
----------------------------------------------------------------------------------------------------------------
Network Integration           L-NT1                                     L-NT1
 Transmission Service         Load ratio share of 1/12 of the revenue   Load ratio share of 1/12 of the revenue
                               requirement of $56,775,913.               requirement of $48,000,660.
----------------------------------------------------------------------------------------------------------------

[[Page 56438]]

 
Firm Point-to-Point           L-FPT1                                    L-FPT1
 Transmission Service         $3.48/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 4.77 mills/kWh.                Maximum of 4.17 mills/kWh Unauthorized
                                                                         Use Penalty of 150% of demand charge,
                                                                         with a maximum of monthly service.
----------------------------------------------------------------------------------------------------------------
Unreserved Use Penalties      L-UU1                                     Provided Under Rate Schedules L-FPT1 and
                              Penalized 200% of demand charge, with a    L-NFPT1 as Unauthorized Use.
                               maximum of monthly service.
----------------------------------------------------------------------------------------------------------------
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 transactions   prescheduled and real-time transactions
                               7 days later, same profile.               7 days later, same profile.
                              Pricing used is WACM weighted average     Pricing used is LAP weighted average
                               hourly purchase price.                    hourly real-time purchase price.
                              Current loss factor as posted is 4.5%.    Current loss factor as posted is 4.5%.
----------------------------------------------------------------------------------------------------------------
Scheduling, System Control,   L-AS1                                     L-AS1
 and Dispatch Service         $24.22 per schedule per day for non-      $38.30 per tag per day for non-Federal
                               Federal transmission customers. Not       transmission customers. Applicable to
                               applicable to schedules for delivery of   all tags.
                               Losses to WACM.
----------------------------------------------------------------------------------------------------------------
Reactive Supply and Voltage   L-AS2                                     L-AS2
 Control from Generation or   $0.305/kW-month.                          $0.180/kW-month.
 Other Sources Service
----------------------------------------------------------------------------------------------------------------
Regulation and Frequency      L-AS3                                     L-AS3
 Response                     $0.331/kW-month.                          $0.339/kW-month.
----------------------------------------------------------------------------------------------------------------
Energy Imbalance Service      L-AS4                                     L-AS4
                              --Imbalances less than or equal to 1.5%   --Imbalances less than or equal to 5%
                               (minimum 4 MW) of metered load settled    (minimum 4 MW) of metered load settled
                               using WACM hourly pricing with no         using WACM hourly pricing with no
                               penalty.                                  penalty.
                              Imbalances between 1.5% and 7.5%          --Imbalances greater than 5% of metered
                               (minimum 4 MW to 10 MW) of metered load   load settled using WACM hourly pricing
                               settled using WACM hourly pricing with    with a 10% penalty.
                               a 10% penalty.                           --WACM aggregate imbalance dictates
                              --Imbalances greater than 7.5% (minimum    pricing in no-penalty band. Customer
                               10 MW) of metered load settled using      imbalance dictates pricing in penalty
                               WACM hourly pricing with a 25% penalty.   band (surpluses indicate sale pricing,
                              --WACM aggregate imbalance determines      deficits indicate purchase pricing).
                               pricing in all bands--aggregate surplus  --Intermittent resources not subject to
                               dictates sale pricing, aggregate          penalties.
                               deficit dictates purchase pricing.
----------------------------------------------------------------------------------------------------------------
Operating Reserve 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 acquired and   from WACM. Reserves may be acquired and
                               provided at pass-through cost, plus an    provided at pass-through cost, plus an
                               amount for administration.                amount for administration.
----------------------------------------------------------------------------------------------------------------

[[Page 56439]]

 
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 between 1.5% and 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
                               25% penalties.
                              --WACM aggregate imbalance determines
                               pricing in all bands--aggregate surplus
                               dictates sale pricing, aggregate
                               deficit dictates purchase pricing.
----------------------------------------------------------------------------------------------------------------

Certification of Rates

    Western's Administrator certified that the Provisional Formula 
Rates for LAP Transmission and WACM Ancillary Services under Rate 
Schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-
AS6, L-AS7, L-AS9, and L-UU1 are the lowest possible rates consistent 
with sound business principles. The Provisional Formula Rates were 
developed following administrative policies and applicable laws.

LAP Transmission Service Discussion

Network Integration Transmission Service

    The monthly charge for Network Integration Transmission Service for 
the Transmission Customer will be as follows:
[GRAPHIC] [TIFF OMITTED] TN13SE11.011

The customer's load-ratio share is the ratio of its network load to the 
LAP Transmission System Total Load at the LAP system peak. This is 
calculated on a rolling 12-month average (12 coincident peak average or 
12-cp).

Firm Point-to-Point Transmission Service

    The formula rate for Firm Point-to-Point Transmission Service is as 
follows:
[GRAPHIC] [TIFF OMITTED] TN13SE11.012

    The rates for FY 2012 are as follows:
    [GRAPHIC] [TIFF OMITTED] TN13SE11.013
    

[[Page 56440]]


    Discussions of the ATRR and the LAP Transmission System Total Load 
are located below.

Non-Firm Point-to-Point Transmission Service

    The maximum Non-Firm Point-to-Point Transmission Service formula 
rate is the same as the Firm Point-to-Point Transmission Service rate. 
Non-Firm Point-to-Point Transmission Service is available for periods 
ranging from 1 hour to 1 year.
    Maximum Hourly Non-Firm Rate: 4.77 mills/kW of reserved capacity 
per hour.

Annual Transmission Revenue Requirement

    The ATRR is applicable to both Network and Point-to-Point 
Transmission Service. The ATRR is the annual cost of the LAP 
Transmission System, adjusted for revenue credits, costs that increase 
the capacity available for transmission, other miscellaneous charges or 
credits, and the prior year true-up. The formula, with amounts 
calculated for the FY 2012 rate, is as follows:
[GRAPHIC] [TIFF OMITTED] TN13SE11.014

    The annual cost of the LAP Transmission System is the ratio of 
gross investment cost for transmission facilities to gross 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, with amounts for 
FY 2012, is as follows:
[GRAPHIC] [TIFF OMITTED] TN13SE11.015

    The source for the annual costs is the formalized work plans for FY 
2012 and the FY 2010 Results of Operations for P-SMBP--WD, with certain 
items adjusted for projected asset capitalization or historical trends. 
See discussion below on ``Change to Forward-Looking Transmission 
Rates.''
    The gross investment cost for transmission facilities is 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, portions of the communication, maintenance, and 
administration facilities are included in the investment costs for 
transmission. Only the investment costs of the facilities identified as 
``transmission'', including allocated costs for communication, 
maintenance, and administration facilities, are used in developing the 
annual cost of the transmission system. 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 Fry-Ark costs are considered generation-related 
and, therefore, are excluded from the ATRR.
    System augmentation expense includes payments made to others for 
their systems' augmentation of the LAP

[[Page 56441]]

Transmission System. Miscellaneous charges and credits will include, 
but will not be limited to, Unreserved Use Penalties and facility use 
charges for transmission facility investments included in the revenue 
requirement. For a description of the prior year true-up, see 
discussion below on ``Change to Forward-Looking Transmission Rates.''

Change to Forward-Looking Transmission Rates

    Western has changed 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 allows Western to more accurately 
match cost recovery with cost incurrence. Western will use projections 
to estimate transmission costs and load for the upcoming year in the 
annual rate calculation, rather than using historical information. The 
method is a change in the manner in which the inputs for the rate are 
developed, rather than a change to the formula rate itself. When actual 
cost information for a year becomes available, Western will calculate 
the actual revenue requirement for that year. Revenue collected in 
excess of the actual revenue requirement will be included as a credit 
in the ATRR in a subsequent year. Similarly, any under-collection of 
the revenue requirement will be included as a charge in the ATRR in a 
subsequent year. This true-up procedure will ensure that Western 
recovers no more and no less than the actual transmission costs for any 
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 will include an adjustment for revenue under- or 
over-collected in FY 2012.

Transmission System Total Load for Point-to-Point Service

    The LAP Transmission System Total Load is a 12-month average of the 
sum of (1) All Network Integration Transmission Service customer loads 
in excess of deliveries of Federal Entitlements, measured at the 
monthly LAP Transmission System peak hour, plus (2) the monthly 
entitlements of Federal Customers, plus (3) the reserved capacity for 
Long-Term Firm Point-to-Point Transmission Service. This load 
calculation is prepared once annually and is used to calculate the 
point-to-point rates for the entire year.
    The LAP Transmission System Total Load is calculated as follows, 
based upon data projected for FY 2012:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Federal Customers......................................       604,639 kW
Network Transmission Customers.........................       743,818 kW
                                                        ----------------
    Subtotal...........................................     1,348,457 kW
------------------------------------------------------------------------
Point-to-Point Reserved Capacity.......................         9,885 kW
------------------------------------------------------------------------
LAP Transmission System Total Load.....................     1,358,342 kW
------------------------------------------------------------------------

Unreserved Use Penalties

    Unreserved use of the transmission system (Unreserved Use) occurs 
when a Transmission Customer uses transmission service that exceeds its 
reserved capacity or an eligible customer uses transmission service 
that it has not reserved. Western will assess Unreserved Use Penalties 
against a customer that has not secured reserved capacity or exceeds 
its reserved capacity at any point of receipt or any point of delivery. 
Unreserved Use may also include a Transmission Customer's failure to 
curtail transmission when requested.
    A customer that engages in Unreserved Use will be assessed a 
penalty charge of 200 percent of LAP's approved transmission service 
rate for Firm Point-to-Point Transmission Service as follows:
    (1) The Unreserved Use penalty for a single hour of Unreserved Use 
will be based upon the rate for daily Firm Point-to-Point Service.
    (2) 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).
    (3) The Unreserved Use penalty charge for multiple instances of 
Unreserved Use (e.g., more than one hour) within a day will be based on 
the rate for daily Firm Point-to-Point Service. Multiple instances of 
Unreserved Use isolated to one calendar week will 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 will 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 will be required to pay, in addition to the 
Unreserved Use Penalties, for all applicable Ancillary Services 
identified in Western's Tariff 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 rate will be included as a credit in the 
calculation of the ATRR in a subsequent year.

Transmission Losses Service

    Transmission Losses are assessed for all real-time and prescheduled 
transactions on transmission facilities inside WACM. In the case of 
Network Integration Transmission Service Customers, transmission and 
transformer Losses applicable under customers' respective contracts are 
calculated as part of the customers' Energy Imbalance Service 
settlements. Other customers are allowed the option of financial 
settlement or energy repayment. Energy repayment is either concurrently 
or 7 days later, to be delivered using the same profile as the related 
transmission transaction. When a transmission loss energy obligation is 
not provided (or is under-provided) by a customer for a transmission 
transaction, the energy still owed for Losses is calculated and a 
charge is assessed to the customer, based on the WACM weighted average 
hourly purchase price. The loss factor, currently 4.5 percent, is 
updated periodically and posted on the RMR OASIS Web site.

Transmission Service Comments

    RMR received no comments concerning transmission service, 
Unreserved Use Penalties, or Transmission Losses during the public 
consultation and comment period.

Ancillary Services Discussion

    Pursuant to Western's Tariff, WACM will offer seven Ancillary 
Services. Two of these services, SSCD Service and VAR Support Service, 
are services that, under Western's Tariff, the Transmission Provider is 
required to provide (or offer to arrange with the Balancing Authority 
operator) and the Transmission Customer is required to purchase.
    The other five Ancillary Services, Regulation Service, Energy 
Imbalance Service, Generator Imbalance Service, Operating Reserve--
Spinning Reserve Service, and Operating Reserve--Supplemental Reserve 
Service, are services that the Transmission Provider is required to 
offer to provide to the Transmission Customer. The Transmission 
Customer is required to acquire these Ancillary Services, either from 
the Transmission Provider or from a third party, or to self-supply 
them.

[[Page 56442]]

Scheduling, System Control, and Dispatch Service

    The formula for SSCD Service, with amounts shown for FY 2012, is as 
follows:
[GRAPHIC] [TIFF OMITTED] TN13SE11.016

     This rate recovers the annual expenses associated with 
transmission scheduling. The annual cost of scheduling personnel and 
related costs is comprised of annual expenses for personnel, 
facilities, equipment, and software, as well as credits representing 
fees for agent services and unscheduled flow mitigation services. This 
revenue requirement is divided by the number of schedules (excluding 
schedules for delivery of losses to WACM) per year to derive a rate per 
schedule per day.
    Per Schedule 1 of Western's Tariff, ``this service can be provided 
only by the operator of the Control Area in which the transmission 
facilities used for transmission service are located.'' In cases in 
which the Transmission Provider (LAP and/or CRSP) directly provides the 
service as the Control Area operator, the costs for this service are 
bundled in the respective Federal transmission rate. In cases in which 
the Transmission Providers on the schedules are not the operator, WACM 
indirectly performs this service for those Transmission Providers' 
transmission systems. Western has historically invoiced the last 
Transmission Provider that is inside WACM on the schedule. Since all 
non-Federal Transmission Providers are indirectly taking this service 
from WACM, Western will allocate the cost of each schedule equally 
among all Transmission Providers (Federal and non-Federal) listed on 
the schedule that are inside WACM. The Federal transmission segments 
will be exempt from invoicing, as costs for these segments will 
continue to be included in the Federal (LAP and CRSP) transmission 
service rates.
    Western will not include schedules for delivery of transmission 
losses to WACM in the calculation of the rate and will not invoice for 
them, so that entities delivering losses may create individual loss 
schedules associated with specific transactions without charge. Western 
will accept any number of schedule changes over the course of a day, 
without additional charge, so that entities attempting to follow their 
loads closely may do so without penalty.

Reactive Supply and Voltage Control From Generation or Other Sources 
Service

    The formula for VAR Support Service is the following:

    [GRAPHIC] [TIFF OMITTED] TN13SE11.017
    
TARRG = Total Annual Revenue Requirement for Generation.
% of Resource = Percentage of Resource Used for VAR Support.
The numerator captures the percentage of annual generation plant 
costs that are used for this service. Most of the LAP generation 
plant facilities are owned and operated by Reclamation, but Western 
has some facilities that are considered generation-related. Net 
generation plant costs are multiplied by a fixed charge rate (FCR) 
for generation to determine the TARRG, where

[[Page 56443]]

[GRAPHIC] [TIFF OMITTED] TN13SE11.018

    The FCR is a methodology used to assign a portion of total expenses 
to generation. Applying these formulas to FY 2010 data provides the 
following results:
[GRAPHIC] [TIFF OMITTED] TN13SE11.019

    Applying this percentage to the amount of net generation plant 
investment results in the TARRG:

TARRG = $334,166,538 x 17.847% = $59,638,020

    The percentage of the TARRG that is included in the revenue 
requirement is based on the nameplate capability of the generating 
units with regard to reactive and real power production. The TARRG is 
multiplied by the complement of the weighted average power factor 
rating for generating units. The weighted average power factor rating 
for the LAP generating units is 94.77 percent, so the revenue 
requirement for this rate includes 5.23 percent of the TARRG. The 
portion of the revenue requirement contributed by LAP plant costs is as 
follows:

LAP Plant Costs = $59,638,020 x 5.2284% = $3,118,089

    Plant costs for CRSP plants providing VAR Support Service are 
calculated using identical methodology. The contribution to the revenue 
requirement from CRSP plants is $1,539,255. The total revenue 
requirement, after adjusting for a small amount of VAR Support Service 
revenue on point-to-point transmission transactions not in the rate 
design, is as follows:

 
 
 
LAP Plant Costs.............................  $3,118,089
CRSP Plant Costs............................  1,539,255
PTP Revenue.................................  (53,525)
                                             ---------------------------
Revenue Requirement.........................  4,603,819
 

    The load taking this service totals 1,258,524 kW, resulting in a 
proposed rate for FY 2012 of:
[GRAPHIC] [TIFF OMITTED] TN13SE11.020

    The rate is applicable to all transmission transactions inside WACM 
in excess of any Federal Entitlements. For Federal Entitlements, the 
cost for this service will be included in the firm electric service 
rates. Customers with generators providing WACM with VAR Support 
Service may be excluded from the application of this rate. Any such 
exclusion must be documented in the customer's Service Agreement.

Regulation and Frequency Response Service

    The formula rate for Regulation Service has two different 
applications:
Load-based Assessment
    The formula for the Load-based Assessment is as follows:
    [GRAPHIC] [TIFF OMITTED] TN13SE11.021
    

[[Page 56444]]


    The rate applies to all entities' auxiliary load (total metered 
load less Federal Entitlements) and also to the installed nameplate 
capacity of intermittent generators serving load inside WACM.
    The revenue requirement will include costs such as plant costs, 
purchases of a regulation product, purchases of power in support of the 
generating 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 as follows. 
First, the annual costs for plants used to regulate is calculated by 
multiplying the net plant costs by the FCR for generation.

Annual Costs = 17.847% x $159,716,812
Annual Costs = $28,504,334

    Then, the annual cost per unit of capacity for regulating plants is 
calculated by dividing the annual costs for regulating plants by the 
capacity of those plants:
[GRAPHIC] [TIFF OMITTED] TN13SE11.022

    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. Current analyses indicate that 75 MW of capacity will be required 
for WACM Regulation Service for FY 2012. Of this total, 55 MW will be 
supplied by LAP plants and 20 MW will be supplied by CRSP plants.

Regulating Plant Costs (LAP) = $60.32 x 55,000 kW
Regulating Plant Costs (LAP) = $3,317,614

    CRSP regulating plant costs are calculated in a similar manner. 
Inserting this and other financial data for FY 2010 into the formula 
results in the following Revenue Requirement:

 
 
 
LAP Plant Costs.........................................      $3,317,614
Purchase Power Costs in Support of Regulation...........       5,049,193
Lost Sales Opportunities from having to generate in off-       1,320,110
 peak hours.............................................
Transmission Costs for Trapped Regulating Units.........       1,042,800
Purchases of Transmission...............................          52,598
CRSP Plant Costs........................................         590,429
                                                         ---------------
    Annual Revenue Requirement..........................      11,372,744
 

    The load inside WACM requiring Regulation Service and the installed 
nameplate capacity of intermittent resources serving load inside WACM 
are 2,791,390 kW and 73,220 kW, respectively.
[GRAPHIC] [TIFF OMITTED] TN13SE11.023

2. Self-Provision Assessment
    Western allows entities with AGC to self-provide for all or a 
portion of their loads. Entities with AGC are known as Sub-Balancing 
Authorities (SBA) and must meet all of the following criteria:
    a. Have a well-defined boundary, with WACM-approved revenue-quality 
metering, accurate as defined by NERC, to include MW flow data 
availability at 6-second or smaller intervals;
    b. Have AGC capability; and
    c. Have demonstrated Regulation Service capability.
    Self-provision will be measured by use of the entity's 1-minute 
average ACE to determine the amount of self-provision. The ACE will be 
used to calculate Regulation Service charges every hour as follows:
    a. If the entity's 1-minute average ACE for the hour is less than 
or equal to 0.5 percent of its hourly average load, no Regulation 
Service charges will be assessed by WACM.
    b. If the entity's 1-minute average ACE for the hour is greater 
than or equal to 1.5 percent of its hourly average load, WACM will 
assess full Regulation Service charges using the Load-based Assessment 
applied to the entity's 12-cp load for that month.
    c. If the entity's 1-minute average ACE for the hour is greater 
than 0.5 percent of its hourly average load, but less than 1.5 percent 
of its hourly average load, WACM will assess Regulation Service charges 
based on linear interpolation of zero charge and full charge, using the 
Load-based Assessment applied to the entity's 12-cp load for that 
month.
    d. 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 full Load-
based Assessment described above.

Alternative Arrangements

    1. Exporting Intermittent Resource Requirement: An entity that 
exports the output from an intermittent generator to another Balancing 
Authority will be

[[Page 56445]]

required to dynamically meter or dynamically schedule that resource out 
of WACM to another Balancing Authority unless arrangements, 
satisfactory to Western, are made for that entity to acquire this 
service from a third party or self-supply (as outlined below). An 
intermittent generator is one that is volatile and variable due to 
factors beyond direct operational control and, therefore, is not 
dispatchable.
    2. 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. This 
entity must have revenue quality metering at every load and generation 
point, accurate as defined by NERC, to include MW flow data 
availability at 6-second or smaller intervals. WACM 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. If approved, the entity 
will be required to enter into a separate agreement with Western, which 
will specify the terms of the self-supply application.

Energy Imbalance Service

    WACM provides Energy Imbalance Service using a penalty and 
bandwidth structure with three deviation bands as follows. The term 
``metered load'' is defined to be ``metered load adjusted for losses.''
    1. An imbalance of less than or equal to 1.5 percent of metered 
load (or 4 MW, whichever is greater) for any hour will be settled 
financially at 100 percent of the WACM weighted average hourly price. 
Each hour will stand on its own--there will be no monthly netting.
    2. An imbalance between 1.5 percent and 7.5 percent of metered load 
(or 4 to 10 MW, whichever is greater) for any hour will be settled 
financially at 90 percent of WACM weighted average hourly price when 
net energy scheduled exceeds metered load or 110 percent of the WACM 
weighted average hourly price when net energy scheduled is less than 
metered load.
    3. An imbalance greater than 7.5 percent of metered load (or 10 MW, 
whichever is greater) for any hour will be settled financially at 75 
percent of the WACM weighted average hourly price when net energy 
scheduled exceeds metered load or 125 percent of the WACM weighted 
average hourly price when net energy scheduled is less than metered 
load.

Aggregate Imbalance, Pricing, and Settlement

    All Energy Imbalance Service provided by WACM will be accounted for 
hourly and settled financially after the end of each month. The WACM 
aggregate imbalance will determine the pricing used in all settlements, 
including those subject to a penalty. For each hour, the gross energy 
imbalance for all entities inside WACM will be totaled/netted to 
determine an aggregate energy imbalance for WACM. The sign of the 
aggregate energy imbalance will determine whether WACM sale or purchase 
pricing will be used for settling imbalances in that hour. A calculated 
surplus will dictate the use of sale pricing; a calculated deficit will 
dictate the use of purchase pricing.
    When there are no real-time sales or purchases within an hour, 
pricing defaults will be applied in the following order:
    1. Weighted average sale or purchase pricing for the day (on- and 
off-peak).
    2. Weighted average sale or purchase pricing for the current month 
(on- and off-peak).
    3. Weighted average sale or purchase pricing for the prior month 
(on- and off-peak).
    4. Weighted average sale or purchase pricing for the month 
immediately prior to the prior month (and continuing in this manner 
until sale or purchase pricing is located) (on- and off-peak).

Expansion of the Bandwidth

    Expansion of the bandwidth may be done to accommodate the 
following: (1) Response to physical resource loss; (2) transition of 
large thermal resources. Details are as follows:
    1. Western will expand the bandwidth during an event established by 
a Western-recognized reserve-sharing group, such as the Rocky Mountain 
Reserve Group. A response made by a member of the reserve group will be 
accounted for by an after-the-fact schedule. Normally, these events are 
1-2 hours in duration. Since the after-the-fact schedule replaces lost 
generation, no expansion will be necessary for the entity receiving the 
response. The expanded bandwidth will apply to the customer that 
increased generation in response to the event and will be based on the 
magnitude of that customer's generation response.
    2. During transition of large base-load thermal resources (capacity 
greater than 200 MW) between off-line and on-line following a reserve 
sharing group response, Western may expand the bandwidth to eliminate 
all penalties during hours in which the unit generates less than the 
predetermined minimum scheduling level. Western may not have access to 
information necessary to determine these hours for some generators and 
will not have access to information on events for reserve sharing 
groups outside RMR. Customers should request bandwidth expansion in 
hours in which they believe it to be warranted. Western may request 
additional information for its decision as to whether to grant the 
request. Bandwidth will not be expanded when ramping services have been 
acquired by another entity.

Balancing Authority Operating Constraints

    Western reserves the right to offer no credit for Energy Imbalance 
Service over-deliveries during times of WACM operating constraints, 
such as ``must-run'' hydrologic conditions, or times when WACM cannot 
dispose of surplus energy. Due to the unpredictable nature of hour-to-
hour energy imbalances and the very short notice for disposition of 
over-deliveries, WACM may experience some hours of zero-value sales and 
may eliminate credits in these hours.
    If WACM is unable to dispose of the entire net over-delivery and 
operating criteria for the Balancing Authority are not met, there may 
be financial sanctions to Western from reliability oversight agencies, 
such as NERC or WECC. In these cases, credits to customers will be 
eliminated and customers over-delivering may share in the cost of the 
sanction. Also, there may be conditions under which customers who 
under-deliver may share in any sanctions imposed on Western by 
reliability oversight agencies.

Generator Imbalance Service

    WACM will provide Generator Imbalance Service to the following 
customers:
    1. Jointly-owned generators whose output is shared by several 
entities. At the written request of all entities who jointly own the 
generator's output, WACM will accept allocations of the generation 
among the participants. In this situation, a participant's share of 
actual generation will be included in its separate Energy Imbalance 
calculation.
    2. Intermittent generators. At the written request of the customer, 
WACM will include the intermittent generator(s) in the customer's 
Energy Imbalance calculation. The customer makes this choice with the 
understanding that the intermittent generator will be subject to 3rd 
band (25 percent) penalties (see formula rate details below).

[[Page 56446]]

    3. Non-intermittent generators serving load only outside WACM.

An entity's solely-owned non-intermittent generator serving load inside 
WACM will be included in its Energy Imbalance Service calculation.
    WACM will provide Generator Imbalance Service using a penalty and 
bandwidth structure with three deviation bands as follows:
    1. An imbalance of less than or equal to 1.5 percent of metered 
generation (or 4 MW, whichever is greater) for any hour is settled 
financially at 100 percent of the WACM weighted average hourly price.
    2. An imbalance between 1.5 percent and 7.5 percent of metered 
generation (or 4 to 10 MW, whichever is greater) for any hour is 
settled financially at 90 percent of the WACM weighted average hourly 
price when actual generation exceeds scheduled generation or 110 
percent of the WACM weighted average hourly price when actual 
generation is less than scheduled generation.
    3. An imbalance greater than 7.5 percent of metered generation (or 
10 MW, whichever is greater) for any hour is settled financially at 75 
percent of the WACM weighted average hourly price when actual 
generation exceeds scheduled generation or 125 percent of the WACM 
weighted average hourly price when actual generation is less than 
scheduled generation.
    Intermittent generators will be exempt from the 25 percent penalty 
band. All imbalances greater than 1.5 percent of metered generation for 
an intermittent generator will be subject only to a 10 percent penalty.
    The features of Energy Imbalance Service described above under 
Aggregate Imbalance, Pricing, and Settlement, Expansion of the 
Bandwidth, and Balancing Authority Operating Constraints, also apply to 
Generator Imbalance Service.

Penalty Elimination

    In any hour, Western will charge a customer a penalty for either 
Generator Imbalance Service or Energy Imbalance Service, but not both, 
unless the imbalances aggravate rather than offset each other. In an 
hour in which penalties on offsetting imbalances would exist based on 
the separate imbalance calculations, Western will remove the penalty 
from the Generator Imbalance calculation. There will be no penalty 
elimination for jointly-owned generators whose participants have a 
separate Energy Imbalance calculation.

Administrative Charge

    In the Notice of Proposed Rates (76 FR 5148), Western proposed to 
assess an administrative charge on each monthly settlement under both 
Energy Imbalance and Generator Imbalance Services. After further 
analysis and customer input, Western has decided not to implement an 
administrative charge under either service.

Operating Reserve--Spinning and Supplemental

    WACM has no long-term Reserves available for sale. At a customer's 
request, WACM will purchase and pass through the cost of Reserves and 
any activation energy, plus a fee for administration. For all Reserves 
purchased, the customer will be responsible for providing the 
transmission to deliver the Reserves.

Ancillary Services Comments

    Western received one written comment concerning the Ancillary 
Services during the public consultation and comment period. This 
comment has been paraphrased where appropriate, without compromising 
the meaning of the comment.
    Comment: The customer requested that, for Regulation Service, 
rather than requiring an intermittent generator that exports its output 
to dynamically meter or dynamically schedule the generation out of 
WACM, Western open communications to pursue other options to avoid this 
requirement. The customer expressed concern about the cost of 
implementing this requirement and the effects the unexpected costs will 
have on member municipalities and their customers. The customer also 
noted that these additional costs were not known at the inception of 
its existing projects when cost analyses were being performed.
    Response: Western thanks the customer for its comment. As noted 
above under Regulation and Frequency Response Service (Alternative 
Arrangements), Western has included as a part of the Regulation Service 
rate schedule, a condition under which an exporting intermittent 
generator will not have to be dynamically removed from WACM. Under this 
condition, the entity must make arrangements, satisfactory to Western, 
to acquire Regulation and Frequency Response Service from a third party 
or self-supply it. Western believes that this is a reasonable 
requirement that will not place an undue burden on existing or 
potential customers who will export intermittent generation from WACM, 
but will support the concept in Western's Tariff that WACM is required 
to provide Ancillary Services only for Load-Serving Entities.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that Western used to develop the Provisional Formula Rates 
are available for inspection and copying at the Rocky Mountain Regional 
Office, located at 5555 East Crossroads Boulevard, Loveland, Colorado. 
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 (NEPA) of 
1969 (42 U.S.C. 4321 et seq.), Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508), and DOE NEPA Regulations (10 CFR 
part 1021), Western has determined that this action is categorically 
excluded from preparing an environmental assessment or an environmental 
impact statement.

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

Order

    In view of the foregoing, and under the authority delegated to me, 
I confirm and approve on an interim basis, effective on the first full 
billing period on or after October 1, 2011, formula rates for Loveland 
Area Projects Transmission and Western Area Colorado Missouri Balancing 
Authority Ancillary Services under Rate Schedules L-NT1, L-FPT1, L-
NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-
UU1. By this order, I am placing the rates into effect in less than 30 
days to meet contract deadlines, to avoid financial difficulties, and 
to provide rates for new services. These rate schedules shall remain in 
effect on an interim basis, pending FERC's confirmation and approval of 
them or substitute formula

[[Page 56447]]

rates on a final basis through September 30, 2016.

Dated: September 2, 2011.

Daniel B. Poneman,
Deputy Sectretary.

Rocky Mountain Region

Western Area Colorado Missouri Balancing Authority

Scheduling, System Control, and DISPATCH SERVICE

Applicable

    Scheduling, System Control, and Dispatch Service is required to 
schedule the movement of power into, out of, inside, or through the 
Western Area Colorado Missouri Balancing Authority (WACM). This service 
must be purchased from the WACM operator. The rate will be applied to 
all schedules, except those for the delivery of transmission losses to 
WACM.
    Unless other arrangements are made with Western, the rate will be 
divided equally among the transmission providers displayed in the 
schedule that are inside WACM. The charges applicable to non-Federal 
transmission will be assessed to those transmission providers. The 
charges applicable to Federal transmission will be included in the 
Federal transmission service rates.
    WACM will accept any number of scheduling changes over the course 
of the day without any additional charge.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN13SE11.024

Rate

    The rate to be in effect October 1, 2011, through September 30, 
2012, is $24.22 per schedule per day. A revised rate will go into 
effect October 1 of each year of the effective rate period based on the 
formula above and updated financial and schedule data. Western will 
notify the Customer annually of the revised rate before October 1.
    Any change to the rate for Scheduling, System Control, and Dispatch 
Service will be listed in a revision to this rate schedule issued under 
applicable Federal laws, regulations, and policies and made part of the 
applicable service agreement.

Western Area Colorado Missouri Balancing Authority

Reactive Supply and Voltage Control From Generation or Other Sources 
Service

Applicable

    To maintain transmission voltages on all transmission facilities 
within acceptable limits, generation facilities under the control of 
the Western Area Colorado Missouri Balancing Authority (WACM) are 
operated to produce or absorb reactive power. Thus, Reactive Supply and 
Voltage Control from Generation or Other Sources Service (VAR Support 
Service) is provided for each transaction on the transmission 
facilities. The amount of VAR Support Service supplied to the 
Customer's (Federal Transmission Customers and customers on others' 
transmission systems inside WACM) transactions will be based on the VAR 
Support Service necessary to maintain transmission voltages within 
limits that are generally accepted in the region and consistently 
adhered to by WACM. The Customer must purchase this service from the 
WACM operator.
    Customers with generators providing WACM with VAR Support Service 
may be excluded from the application of this rate. Any such exclusion 
must be documented in the Customer's service agreement.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN13SE11.025

Rate

    The rate to be in effect October 1, 2011, through September 30, 
2012, is:


 
 
 
Monthly...................................  $0.305/kW-month
Weekly....................................  $0.070/kW-week
Daily.....................................  $0.010/kW-day
Hourly....................................  $0.000418/kWh
 

    A revised rate will go into effect October 1 of each year of the 
effective rate period based on the formula above and updated financial 
and load data. Western will notify the Customer annually of the revised 
rate before October 1.
    Any change to the rate for VAR Support Service will be listed in a 
revision to this rate schedule issued under applicable Federal laws, 
regulations, and policies and made part of the applicable service 
agreement.

[[Page 56448]]

Regulation and Frequency Response Service

Applicable

    Regulation and Frequency Response Service (Regulation Service) is 
necessary to provide for the continuous balancing of resources with 
obligations, and for maintaining scheduled interconnection frequency at 
sixty cycles per second (60 Hz). Regulation Service is accomplished by 
committing on-line generation whose output is raised or lowered as 
necessary, predominantly through the use of automatic generation 
control (AGC) equipment, to follow the moment-by-moment changes in 
load. The obligation to maintain this balance between resources and 
load lies with the Western Area Colorado Missouri Balancing Authority 
(WACM) operator. Customers (Federal Transmission Customers and 
customers on others' transmission systems inside WACM) must purchase 
this service from WACM or make alternative comparable arrangements to 
satisfy their Regulation Service obligations.

Types

    There are two different applications of this Formula Rate:
    1. Load-based Assessment: The rate for the load-based assessment is 
reflected in the Formula Rate section and is applied to entities that 
take Regulation Service from WACM. This load-based rate is assessed on 
an entity's auxiliary load (total metered load less Federal 
entitlements) and is also applied to the installed nameplate capacity 
of all intermittent generators serving load inside WACM.
    2. Self-provision Assessment: Western allows entities with AGC to 
self-provide for all or a portion of their loads. Entities with AGC are 
known as Sub-Balancing Authorities (SBA) and must meet all of the 
following criteria:
    a. Have a well-defined boundary, with WACM-approved revenue-quality 
metering, accurate as defined by the North American Electric 
Reliability Corporation (NERC), to include MW flow data availability at 
6-second or smaller intervals;
    b. Have AGC capability;
    c. Demonstrate Regulation Service capability; and
    d. Execute a contract with WACM:
    i. Provide all requested data to WACM.
    ii. Meet SBA error criteria as described under section 2.1 below.
    2.1. Self-provision is measured by use of the entity's 1-minute 
average Area Control Error (ACE) to determine the amount of self-
provision. The ACE is used to calculate the Regulation Service charges 
every hour as follows:
    a. If the entity's 1-minute average ACE for the hour is less than 
or equal to 0.5 percent of its hourly average load, no Regulation 
Service charge is assessed by WACM for that hour.
    b. If the entity's 1-minute average ACE for the hour is greater 
than or equal to 1.5 percent of its hourly average load, WACM assesses 
Regulation Service charges to the entity's entire auxiliary load, using 
the hourly Load-based Assessment applied to the entity's auxiliary 12-
cp load for that month.
    c. If the entity's 1-minute average ACE for the hour is greater 
than 0.5 percent of its hourly average load, but less than 1.5 percent 
of its hourly average load, WACM assesses Regulation Service charges 
based on linear interpolation of zero charge and full charge, using the 
hourly Load-based Assessment applied to the entity's auxiliary 12-cp 
load for that month.
    d. Western monitors the entity's Self-provision on a regular basis. 
If Western determines that the entity has not been attempting to self-
regulate, WACM will, upon notification, employ the Load-based 
Assessment described in No. 1, above.

Alternative Arrangements

    Exporting Intermittent Resource Requirement: An entity that exports 
the output from an intermittent generator to another balancing 
authority will be required to dynamically meter or dynamically schedule 
that resource out of WACM to another balancing authority unless 
arrangements, satisfactory to Western, are made for that entity to 
acquire this service from a third party or self-supply (as outlined 
below). An intermittent generator is one that is volatile and variable 
due to factors beyond direct operational control and, therefore, is not 
dispatchable.
    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. This entity must 
have revenue quality metering at every load and generation point, 
accurate as defined by NERC, to include MW flow data availability at 6-
second or smaller intervals. Western 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. If approved, the entity 
is required to enter into a separate agreement with Western which will 
specify the terms of the self-supply application.

Customer Accommodation

    For entities unwilling to take Regulation Service, self-provide it 
as described above, or acquire the service from a third party, Western 
will assist the entity in dynamically metering its loads/resources to 
another balancing authority. Until such time as that meter 
configuration is accomplished, the entity will be responsible for 
charges assessed by WACM under the rate in effect.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.
Formula Rate
[GRAPHIC] [TIFF OMITTED] TN13SE11.026

Rate

    The rate to be in effect October 1, 2011, through September 30, 
2012, for Nos. 1 and 2, as described above in the ``Types'' section of 
this rate schedule, is:


 
 
 
Monthly...................................  $0.331/kW-month
Weekly....................................  $0.076/kW-week
Daily.....................................  $0.011/kW-day
Hourly....................................  $0.000458/kWh.
 

    A revised rate will go into effect October 1 of each year of the 
effective rate period based on the formula above

[[Page 56449]]

and updated financial and load data. Western will notify the Customer 
annually of the revised rate before October 1.
    Any change to the rate for Regulation Service will be listed in a 
revision to this rate schedule issued under applicable Federal laws, 
regulations, and policies and made part of the applicable service 
agreement.

Rocky Mountain Region

Energy Imbalance Service

Applicable

    The Western Area Colorado Missouri Balancing Authority (WACM) 
provides Energy Imbalance Service when there is a difference between a 
Customer's (Federal Transmission Customers and customers on others' 
transmission systems inside WACM) resources and obligations. Energy 
Imbalance is calculated as resources minus obligations (adjusted for 
transmission and transformer losses) for any combination of generation, 
scheduled transfers, transactions, or actual load integrated over each 
hour. Customers inside WACM must either obtain this service from WACM 
or make alternative comparable arrangements to satisfy their Energy 
Imbalance Service obligation. This rate applies to all customers with 
load inside WACM.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate

    Imbalances are calculated in three deviation bands as follows. The 
term ``metered load'' is defined to be ``metered load adjusted for 
losses.''
    1. An imbalance of less than or equal to 1.5 percent of metered 
load (or 4 MW, whichever is greater) for any hour is settled 
financially at 100 percent of the WACM weighted average hourly price.
    2. An imbalance between 1.5 percent and 7.5 percent of metered load 
(or 4 to 10 MW, whichever is greater) for any hour is settled 
financially at 90 percent of the WACM weighted average hourly price 
when net energy scheduled exceeds metered load or 110 percent of the 
WACM weighted average hourly price when net energy scheduled is less 
than metered load.
    3. An imbalance greater than 7.5 percent of metered load (or 10 MW, 
whichever is greater) for any hour is settled financially at 75 percent 
of the WACM weighted average hourly price when net energy scheduled 
exceeds metered load or 125 percent of the WACM weighted average hourly 
price when net energy scheduled is less than metered load.
    All Energy Imbalance Service provided by WACM is accounted for 
hourly and settled financially. The WACM aggregate imbalance determines 
the pricing used in all deviation bands. A surplus dictates the use of 
sale pricing; a deficit dictates the use of purchase pricing. When no 
hourly data is available, the pricing defaults for sales and purchase 
pricing are applied in the following order:
    1. Weighted average sale or purchase pricing for the day (on- and 
off-peak).
    2. Weighted average sale or purchase pricing for the month (on- and 
off-peak).
    3. Weighted average sale or purchase pricing for the prior month 
(on- and off-peak).
    4. Weighted average sale or purchase pricing for the month prior to 
the prior month (and continuing until sale or purchase pricing is 
located) (on- and off-peak).
    Expansion of the bandwidth may be allowed during the following 
instances:
     Response to the loss of a physical resource.
     During transition of large base-load thermal resources 
(capacity greater than 200 MW) between off-line and on-line following a 
reserve sharing group response, when the unit generates less than the 
predetermined minimum scheduling level.
    During periods of balancing authority operating constraints, 
Western reserves the right to eliminate credits for over-deliveries. 
The cost to Western of any penalty assessed by a regulatory authority 
due to a violation of operating standards resulting from under- or 
over-delivery of energy may be passed through to Energy Imbalance 
Service customers.

Rate

    The bandwidths, penalties, and pricing described above are in 
effect October 1, 2011, through September 30, 2012.
    Any change to the rate for Energy Imbalance Service will be listed 
in a revision to this rate schedule issued under applicable Federal 
laws, regulations, and policies and made part of the applicable service 
agreement.

Operating Reserve--Spinning Reserve Service

Applicable

    Spinning Reserve Service (Reserves) is needed to serve load 
immediately in the event of a system contingency. Reserves may be 
provided by generating units that are on-line and loaded at less than 
maximum output. The Customers (Federal Transmission Customers and 
customers on others' transmission system inside Western Area Colorado 
Missouri Balancing Authority (WACM)) must either purchase this service 
from WACM or make alternative comparable arrangements to satisfy their 
Reserves obligation.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate

    WACM has no long-term Reserves available for sale. At a Customer's 
request, WACM will purchase Reserves and pass through the cost of 
Reserves and any activation energy, plus a fee for administration. The 
Customer will be responsible for providing the transmission to deliver 
the Reserves.

Rocky Mountain Region

Operating Reserve--Supplemental Reserve Service

Applicable

    Supplemental Reserve Service (Reserves) is needed to serve load in 
the event of a system contingency; however, it is not available 
immediately to serve load but rather within a short period of time. 
Reserves may be provided by generating units that are on-line but 
unloaded, by quick-start generation, or by interruptible load. The 
Customers (Federal Transmission Customers and customers on others' 
transmission system inside Western Area Colorado Missouri Balancing 
Authority (WACM)) must either purchase this service from WACM or make 
alternative comparable arrangements to satisfy their Reserves 
obligation.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate

    WACM has no long-term Reserves available for sale. At a Customer's 
request, WACM will purchase Reserves and pass through the cost of 
Reserves and any activation energy, plus a fee for administration. The 
Customer will be responsible for providing the transmission to deliver 
the Reserves.

Rocky Mountain Region

Transmission Losses Service

Applicable

    The Western Area Colorado Missouri Balancing Authority (WACM) 
provides Transmission Losses Service to all

[[Page 56450]]

Transmission Service Providers who market transmission inside WACM. The 
loss factor currently in effect is posted on the Rocky Mountain Region 
(RMR) Open Access Same-Time Information System (OASIS) Web site.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate

    Transmission Losses are assessed for all real-time and prescheduled 
transactions on transmission facilities inside WACM. The Customer is 
allowed the option of energy repayment or financial repayment. Energy 
repayment may be either concurrently or seven days later, to be 
delivered using the same profile as the related transmission 
transaction. Customers must declare annually their preferred 
methodology of energy payback.
    When a transmission loss energy obligation is not provided (or is 
under-provided) by a Customer for a transmission transaction, the 
energy still owed for Transmission Losses is calculated and a charge is 
assessed to the Customer, based on the WACM weighted average hourly 
purchase price.
    Pricing for loss energy due 7 days later, and not received by WACM, 
will be priced at the 7-day-later-price based on the WACM weighted 
average hourly purchase price.
    There will be no financial compensation or energy return to 
Customers for over-delivery of Transmission Losses, as there should be 
no condition beyond the control of the Customer that results in 
overpayment.

Rate

    This loss factor, as posted on the RMR OASIS, is in effect October 
1, 2011, through September 30, 2012. Customers may settle financially 
or with energy. The pricing for this service will be the WACM weighted 
average hourly purchase price. When no hourly data is available, 
pricing defaults will be applied in the following order:
    1. Weighted average purchase pricing for the day (on- and off-
peak).
    2. Weighted average purchase pricing for the current month (on- and 
off-peak).
    3. Weighted average purchase pricing for the prior month (on- and 
off-peak).
    4. Weighted average purchase pricing for the month prior to the 
prior month (and continuing until or purchase pricing is located) (on- 
and off-peak).
    Any change to the rate for Transmission Losses Service will be 
listed in a revision to this rate schedule issued under applicable 
Federal laws, regulations, and policies and made part of the applicable 
service agreement.

Loveland Area Projects

Long-Term Firm and Short-Term Firm Point-to-Point Transmission Service

Applicable

    The Transmission Customer shall compensate the Loveland Area 
Projects (LAP) each month for Reserved Capacity under the applicable 
Firm Point-to-Point Transmission Service Agreement and the rate 
outlined herein.

Discounts

    Three principal requirements apply to discounts for transmission 
service as follows:
    (1) Any offer of a discount made by LAP must be announced to all 
eligible customers solely by posting on the Rocky Mountain Region's 
Open Access Same-Time Information System Web site (OASIS); (2) any 
customer-initiated requests for discounts, including requests for use 
by the LAP merchant, must occur solely by posting on the OASIS; and (3) 
once a discount is negotiated, details must be immediately posted on 
the OASIS. For any discount agreed upon for service on a path, from 
Point(s) of Receipt to Point(s) of Delivery, LAP must offer the same 
discounted transmission service rate for the same time period to all 
eligible customers on all unconstrained transmission paths that go to 
the same point(s) of delivery on the transmission system.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN13SE11.027

Rate

    The rate to be in effect October 1, 2011, through September 30, 
2012, is:

------------------------------------------------------------------------
                                                     Maximum of
------------------------------------------------------------------------
Yearly....................................   $41.80/kW of reserved
                                             capacity per year.
Monthly...................................  $ 3.48/kW of reserved
                                             capacity per month.
Weekly....................................  $ 0.80/kW of reserved
                                             capacity per week.
Daily.....................................  $ 0.11/kW of reserved
                                             capacity per day.
------------------------------------------------------------------------

    A revised rate will go into effect October 1 of each year of the 
effective rate period based on the formula above, updated financial and 
load projections, and the true-up of previous projections. Western will 
notify the Transmission Customer annually of the revised rate before 
October 1.
    Any change to the rate for Long-Term Firm and Short-Term Firm 
Transmission Service will be listed in a revision to this rate schedule 
issued under applicable Federal laws, regulations, and policies and 
made part of the applicable service agreement.

Non-Firm Point-to-Point Transmission Service

Applicable

    The Transmission Customer will compensate Loveland Area Projects 
(LAP) for Non-Firm Point-to-Point Transmission Service under the 
applicable Non-Firm Point-to-Point Transmission Service Agreement and 
the rate outlined herein.

Discounts

    Three principal requirements apply to discounts for transmission 
service as follows: (1) Any offer of a discount made by LAP must be 
announced to all eligible customers solely by posting on Rocky Mountain 
Region's Open Access Same-Time Information System Web site (OASIS); (2) 
any customer-initiated requests for discounts, including requests for 
use by the LAP merchant, must occur solely by posting on the OASIS; and 
(3) once a discount is negotiated, details must be immediately posted 
on the OASIS. For any discount agreed upon for service on a path, from 
Point(s) of Receipt to Point(s) of Delivery, LAP must offer the same 
discounted transmission service rate for the same time period to all 
eligible customers on all unconstrained

[[Page 56451]]

transmission paths that go to the same point(s) of delivery on the 
transmission system.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN13SE11.028

Rate

    The rate to be in effect October 1, 2011, through September 30, 
2012, is:

------------------------------------------------------------------------
                                                     Maximum of
------------------------------------------------------------------------
Yearly....................................  $41.80/kW of reserved
                                             capacity per year.
Monthly...................................  $3.48/kW of reserved
                                             capacity per month.
Weekly....................................  $0.80/kW of reserved
                                             capacity per week.
Daily.....................................  $0.11/kW of reserved
                                             capacity per day.
Hourly....................................  4.77 mills/kWh.
------------------------------------------------------------------------

    A revised rate will go into effect October 1 of each year of the 
effective rate period based on the formula above, updated financial and 
load projections, and the true-up of previous projections. Western will 
notify the Transmission Customer annually of the revised rate before 
October 1.
    Any change to the rate for Non-Firm Point-to-Point Transmission 
Service will be listed in a revision to this rate schedule issued under 
applicable Federal laws, regulations, and policies and made part of the 
applicable service agreement.

Annual Transmission Revenue Requirement for Network Integration 
Transmission Service

Applicable

    Transmission Customers will compensate the Loveland Area Projects 
each month for Network Integration Transmission Service under the 
applicable Network Integration Transmission Service Agreement and the 
Annual Transmission Revenue Requirement described herein.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN13SE11.029

Rate

    The Annual Transmission Revenue Requirement in effect October 1, 
2011, through September 30, 2012, is $56,775,913.
    A revised Annual Transmission Revenue Requirement will go into 
effect October 1 of each year of the effective rate period based on 
updated financial projections and the true-up of previous projections. 
Western will notify the Transmission Customer annually of the revised 
Annual Transmission Revenue Requirement before October 1.
    Any change to the rate for Network Integration Transmission Service 
will be listed in a revision to this rate schedule issued under 
applicable Federal laws, regulations, and policies and made part of the 
applicable service agreement.

Generator Imbalance Service

Applicable

    The Western Area Colorado Missouri (WACM) Balancing Authority 
provides Generator Imbalance Service when there is a difference between 
a Customer's (Federal Transmission Customers and customers on others' 
transmission systems inside WACM) resources and obligations. Generator 
Imbalance is calculated as actual generation minus scheduled generation 
for each hour. Customers inside WACM must either obtain this service 
from WACM or make alternative comparable arrangements to satisfy their 
Generator Imbalance Service obligation. This rate applies to all 
jointly-owned generators (unless arrangements are made to allocate 
actual generation to each individual owner), intermittent generators 
(unless arrangements are made to assess the intermittent generator 
under Rate Schedule L-AS4), and any non-intermittent generators serving 
load only outside WACM.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Formula Rate

    Imbalances are calculated in three deviation bands as follows:
    1. An imbalance of less than or equal to 1.5 percent of metered 
generation (or 4 MW, whichever is greater) for any hour is settled 
financially at 100 percent of the WACM weighted average hourly price.
    2. An imbalance between 1.5 percent and 7.5 percent of metered 
generation (or 4 to 10 MW, whichever is greater) for any hour is 
settled financially at 90 percent of the WACM weighted average hourly 
price when actual generation exceeds scheduled generation or 110 
percent of the WACM weighted average hourly price when actual 
generation is less than scheduled generation.
    3. An imbalance greater than 7.5 percent of metered generation (or 
10 MW, whichever is greater) for any hour is settled financially at 75 
percent of the WACM weighted average hourly price when actual 
generation exceeds scheduled generation or 125 percent of the WACM 
weighted average hourly price when actual generation is ou . less than 
scheduled generation.
    Intermittent generators are exempt from 25 percent penalties. All 
imbalances greater than 1.5 percent of metered generation are subject 
only to a 10 percent penalty.
    All Generator Imbalance Service provided by WACM is accounted for 
hourly and settled financially. The WACM aggregate imbalance determines 
the pricing used in all deviation bands. A surplus dictates the use of 
sale

[[Page 56452]]

pricing; a deficit dictates the use of purchase pricing. When no hourly 
data is available, the pricing defaults for sales and purchase pricing 
are applied in the following order:
    1. Weighted average sale or purchase pricing for the day (on- and 
off-peak).
    2. Weighted average sale or purchase pricing for the current month 
(on- and off-peak).
    3. Weighted average sale or purchase pricing for the prior month 
(on- and off-peak).
    4. Weighted average sale or purchase pricing for the month prior to 
the prior month (and continuing until sale or purchase pricing is 
located) (on- and off-peak).
    Expansion of the bandwidth may be allowed during the following 
instances:
     Response to the loss of a physical resource.
     During transition of large base-load thermal resources 
(capacity greater than 200 MW) between off-line and on-line following a 
reserve sharing group response, when the unit generates less than the 
predetermined minimum scheduling level.
    During periods of balancing authority operating constraints, 
Western reserves the right to eliminate credits for over-deliveries. 
The cost to Western of any penalty assessed by a regulatory authority 
due to a violation of operating standards resulting from under- or 
over-delivery of energy may be passed through to Generator Imbalance 
Service customers.

Rate

    The bandwidths, penalties, and pricing described above are in 
effect October 1, 2011, through September 30, 2012.
    Any change to the rate for Generator Imbalance Service will be 
listed in a revision to this rate schedule issued under applicable 
Federal laws, regulations, and policies and made part of the applicable 
service agreement.

Loveland Area Projects

Unreserved Use Penalties

    Applicable
    The Transmission Customer shall compensate the Loveland Area 
Projects (LAP) each month for any unreserved use of the transmission 
system (Unreserved Use) under the applicable transmission service rates 
as outlined herein. Unreserved Use occurs when an eligible customer 
uses transmission service that it has not reserved or a Transmission 
Customer uses transmission service in excess of its reserved capacity. 
Unreserved Use may also include a Customer's failure to curtail 
transmission when requested.

Penalty Rate

    The penalty rate for a Transmission Customer that engages in 
Unreserved Use is 200 percent of LAP's approved rate for firm point-to-
point transmission service assessed as follows: The Unreserved Use 
Penalty for a single hour of Unreserved Use is based upon the rate for 
daily firm point-to-point service. The Unreserved Use Penalty for more 
than one assessment for a given duration (e.g., daily) increases to the 
next longest duration (e.g., weekly). The Unreserved Use Penalty for 
multiple instances of Unreserved Use (e.g., more than one hour) within 
a day is based on the rate for daily firm point-to-point service. The 
Unreserved Use Penalty for multiple instances of Unreserved Use 
isolated to one calendar week is based on the rate for weekly firm 
point-to-point service. The Unreserved Use Penalty for multiple 
instances of Unreserved Use during more than one week in a calendar 
month is based on the rate 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 
that were provided by the Western Area Colorado Missouri Balancing 
Authority and associated with the Unreserved Use. The Customer will pay 
for ancillary services based on the amount of transmission service it 
used and did not reserve.

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2011, through September 30, 2016.

Rate

    The rate for Unreserved Use Penalties is 200 percent of LAP's 
approved rate for firm point-to-point transmission service assessed as 
described above.
    Any change to the rate for Unreserved Use Penalties will be listed 
in a revision to this rate schedule issued under applicable Federal 
laws, regulations, and policies and made part of the applicable service 
agreement.

[FR Doc. 2011-23391 Filed 9-12-11; 8:45 am]
BILLING CODE 6450-01-P