[Federal Register Volume 78, Number 58 (Tuesday, March 26, 2013)]
[Notices]
[Pages 18335-18336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06851]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Arizona Project-Rate Order No. WAPA-158

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Extension of Transmission Service Rate Schedules.

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SUMMARY: This action is to extend the rate setting formula for the 
Central Arizona Project, reflected in Transmission Service Rate 
Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2, from January 1, 2013, 
through December 31, 2015. These Transmission Service Rate Schedules 
contain formula rates recalculated from annual updated financial and 
load data.

FOR FURTHER INFORMATION CONTACT: Mr. Darrick Moe, Regional Manager, 
Desert Southwest Customer Service Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2522, 
email [email protected], or Mr. Jack Murray, Rates Manager, Desert Southwest 
Customer Service Region, Western Area Power Administration, P.O. Box 
6457, Phoenix, AZ 85005-6457, (602) 605-2442, email [email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated: (1) The authority 
to develop power and transmission rates to the Administrator of Western 
Area Power Administration (Western); (2) the authority to confirm, 
approve, and place such rates into effect on an interim basis to the 
Deputy Secretary of Energy; and (3) the authority to confirm, approve, 
and place into effect on a final basis, to remand, or to disapprove 
such rates to the Federal Energy Regulatory Commission (FERC).
    The existing Rate Schedules CAP-FT2, CAP-NFT2, CAP-NITS2 under Rate 
Order No. WAPA-124,\1\ were approved for a 5-year period beginning on 
January 1, 2006, and ending December 31, 2010.\2\ Rate Order No. WAPA-
153 \3\ extended the approval period for these rate schedules for a 2-
year period, beginning January 1, 2011, through December 31, 2012.
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    \1\ FERC confirmed and approved Rate Order No. WAPA-124 on June 
29, 2006, in Docket No. EF06-5111-000. See Order Confirming and 
Approving Rate Schedules on a Final Basis, 115 FERC ] 62,326.70 FR 
38,130 (July 1, 2005).
    \2\ FERC confirmed and approved Rate Order No. WAPA-124 on June 
29, 2006, in Docket No. EF06-5111-000, 115 FERC ] 62,326.
    \3\ 76 FR 548 (January 5, 2011).
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    The existing Central Arizona Project rate setting formula 
methodology provides for the calculation of rates to collect sufficient 
revenue to pay all annual costs, including interest expense, and 
repayment of required investment thus ensuring repayment of the project 
within the cost recovery criteria set forth in DOE Order RA 6120.2. The 
rates are updated annually using new financial and transmission 
reservation data. For the reasons explained in its Proposed Extension 
WAPA-158, published in the Federal Register on August 7, 2012 (77 FR 
47065), Western is not changing the rate formula at this time. Based on 
financial and contractual information, Western also determined that the 
existing calculated rate provides sufficient revenue to recover all 
appropriate costs and will remain in place through

[[Page 18336]]

calendar year 2013. Therefore, Western proposed extending the usage of 
the current transmission service formula rate schedules through 
calendar year 2015 pursuant to 10 CFR 903.23(a) under Rate Order No. 
WAPA-158.
    As allowed by 10 CFR 903.23(a) Western provided for a consultation 
and comment period on Proposed Extension WAPA-158, but did not conduct 
public information forums or public comment forums. The consultation 
and comment period ended on September 6, 2012. No comments were 
received.
    Following review of Western's proposal within the Department of 
Energy, I hereby approve Rate Order No. WAPA-158 which extends 
Transmission Service Rate Schedules CAP-FT2, CAP-NFT2, and CAP-NITS2 on 
an interim basis effective as of January 1, 2013. This order places the 
rates schedules into effect without 30 days notice to avoid financial 
difficulties that may be created by questions concerning the applicable 
rates. A 30-day delay in effective date is also unnecessary given that 
the rate setting formulas remain unchanged from the previous formulas 
in effect until December 31, 2012. Rate Order No. WAPA-158 will be 
submitted promptly to FERC for confirmation and approval on a final 
basis.

    Dated: March 15, 2013.
Daniel B. Poneman,
Deputy Secretary .

Department of Energy Deputy Secretary

    In the Matter of: Western Area Power Administration, Rate 
Extension for Central Arizona Project Transmission Service Rate 
Schedules.

Order Confirming and Approving an Extension of the Central Arizona 
Project Transmission Service Rate Schedules
    Section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152) transferred to and vested in the Secretary of Energy the 
power marketing functions of the Secretary of the Department of the 
Interior and the Bureau of Reclamation under the Reclamation Act of 
1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by 
subsequent laws, particularly section 9(c) of the Reclamation Project 
Act of 1939 (43 U.S.C. 485h(c)), and other acts that specifically apply 
to the project involved.
    By Delegation Order No. 00-037.00, effective December 6, 2001, the 
Secretary of Energy delegated (1) the authority to develop long-term 
power and transmission rates to the Administrator of the Western Area 
Power Administration (Western); (2) the authority to confirm, approve, 
and place such rates into effect on an interim basis to the Deputy 
Secretary of Energy; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand, or to disapprove such 
rates to the Federal Energy Regulatory Commission (FERC). This 
extension of the rate schedules is issued pursuant to the Delegation 
Order and DOE rate extension procedures at 10 CFR 903.23(a).

Background

    On June 29, 2006, in Docket No. EF06-5111-000 at 115 FERC 62,326 
FERC issued an order confirming, approving, and placing into effect on 
a final basis the Transmission Service Rate Schedules CAP-FT2, CAP-NFT2 
and CAP-NITS2 for the Central Arizona Project (CAP). The Transmission 
Service Rate Schedules, Rate Order No. WAPA-124,\1\ were approved for 5 
years beginning December 23, 2005, through December 31, 2010.\2\ Rate 
Order No. WAPA-153 \3\ extended these rate schedules for a 2-year 
period, beginning January 1, 2011, and ending December 31, 2012. 
Western is requesting a further extension of the approval period for 
the CAP Transmission Service Rate Schedules, incorporated by reference 
herein, under Rate Order No. WAPA-158, through December 31, 2015.
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    \1\ 70 FR 38,130 (July 1, 2005).
    \2\ 115 FERC ] 62,236 (2006).
    \3\ 76 FR 548 (January 5, 2011).
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Discussion

    Western's existing formula transmission service rates for the 
Central Arizona Project 115kV and 230kV transmission facilities, which 
are recalculated annually, are expected to continue to sufficiently 
recover project expenses (including interest) and capital requirements 
through December 31, 2015. However, on December 31, 2012, the approval 
period for rate schedules CAP-FT2, CAP-NFT2 and CAP-NITS2, under which 
these rates are calculated, ended. This makes it necessary to extend 
the approval period for the existing rate schedules under 10 CFR 
903.23(a).

Order

    In view of the above and under the authority delegated to me, I 
hereby extend the existing Transmission Rate Schedules CAP-FT2, CAP-
NFT2, and CAP-NITS2 for transmission service for the Central Arizona 
Project of the Western Area Power Administration on an interim basis. 
The existing Transmission Rate Schedules CAP-FT2, CAP-NFT2, AND CAP-
NITS2 for transmission service for the Central Arizona Project of the 
Western Area Power Administration, shall remain in effect pending FERC 
confirmation and approval of their extension or substitute rates on a 
final basis through December 31, 2015.

    Dated: March 15, 2013.
Daniel B. Poneman,
Deputy Secretary .
[FR Doc. 2013-06851 Filed 3-25-13; 8:45 am]
BILLING CODE 6450-01-P