[Federal Register Volume 78, Number 83 (Tuesday, April 30, 2013)]
[Notices]
[Pages 25264-25265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-10125]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Washoe Project-Rate Order No. WAPA-160

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Extension of Non-Firm Power Formula Rate.

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SUMMARY: The Western Area Power Administration (Western) extends, on an 
interim basis, the existing Washoe Project formula rate through 
September 30, 2017. The existing Non-Firm Power Formula Rate Schedule 
SNF-7 expires on July 31, 2013. The formula rate will be in effect 
until the Federal Energy Regulatory Commission (FERC) places the 
formula rate into effect on a final basis or until it is replaced by 
another rate.

DATES: This action is effective as of July 31, 2013.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas R. Boyko, Regional Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4418, email: [email protected], or Ms. Regina Rieger, Rates Manager, 
Sierra Nevada Customer Service Region, Western Area Power 
Administration, 114 Parkshore Drive, Folsom, CA 95630-4710, (916) 353-
4629, 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 Western's Administrator; (2) 
the authority to confirm, approve, and place such rates into effect on 
an interim basis to the Deputy Secretary of Energy; and (3) the 
authority to confirm, approve, and place into effect on a final basis, 
to remand, or to disapprove such rates to FERC. This extension is 
issued pursuant to the Delegation Order and DOE rate extension 
procedures at 10 CFR 903.23(a).
    On April 16, 2009, FERC confirmed and approved the existing formula 
rate for the Washoe Project, Stampede Division (Project), Non-Firm 
Power

[[Page 25265]]

Formula Rate Schedule SNF-7,\1\ Rate Order No. WAPA-136.\2\ Rate 
Schedule SNF-7 expires on July 31, 2013. This formula rate is 
calculated annually after determining the Project's reimbursable 
expenses and revenue collected in accordance with the Stampede Energy 
Exchange Services Contract. Since the Project has no Federally-owned 
transmission, a contractor accepts delivery of Project generation, 
approximately 12,000 megawatt-hours annually, to serve project use 
obligations, then pays Western for energy received in excess of project 
use loads. Pursuant to Rate Schedule SNF-7, any remaining reimbursable 
expenses are transferred into the Central Valley Project power revenue 
requirement. The existing formula rate methodology collects annual 
revenue sufficient to recover annual expenses, including interest, 
capital requirements, and deficit recovery, thus ensuring Project 
repayment within the cost recovery criteria set forth in DOE Order RA 
6120.2.
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    \1\ See U.S. Dept. of Energy, Western Area Power Admin., Docket 
No. EF08-5161-000, 127 FERC ] 62,043 (2009).
    \2\ See 73 FR 42565 (July 22, 2008).
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    Rate extensions are authorized under 10 CFR 903.23. Rates 
previously confirmed and approved by FERC, for which no adjustment is 
contemplated, may be extended by the Deputy Secretary on an interim 
basis following notice of proposed extension at least 30 days before 
expiration.\3\ On February 22, 2013, Western published a notice of the 
proposed extension in the Federal Register.\4\
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    \3\ See 10 CFR 903.23(a) (2012).
    \4\ See 78 FR 12308 (February 22, 2013).
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    Following review of Western's proposal within DOE, I hereby 
approve, on an interim basis, Rate Order No. WAPA-160, which extends, 
without adjustment, the existing Non-Firm Power Formula Rate Schedule 
SNF-7 through September 30, 2017. Rate Order No. WAPA-160 will be 
submitted to FERC for confirmation and approval on a final basis.

    Dated: April 23, 2013.
Daniel B. Poneman,
Acting Secretary.

Order Confirming and Approving an Extension of the Washoe Project, 
Stampede Division, Non-Firm Power Formula Rate Schedule

    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 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 is issued pursuant to the Delegation Order and DOE rate 
extension procedures at 10 CFR 903.23(a).

Background

    On April 16, 2009, FERC confirmed and approved the existing formula 
rate for the Washoe Project, Stampede Division (Project), Non-Firm 
Power Formula Rate Schedule SNF-7,\1\ Rate Order No. WAPA-136.\2\ FERC 
approved Rate Schedule SNF-7 for 5 years beginning August 1, 2008, 
through July 31, 2013. On February 22, 2013, pursuant to 10 CFR 
903.23(a), Western filed a notice in the Federal Register proposing to 
extend, without adjustment, Rate Schedule SNF-7, as Rate Order No. 
WAPA-160.\3\ Consistent with its regulations at 10 CFR 903.23(a), 
Western did not hold a consultation and comment period.
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    \1\ See U.S. Dept. of Energy, Western Area Power Admin., Docket 
No. EF08-5161-000, 127 FERC ] 62,043 (2009).
    \2\ See 73 FR 42,565 (July 22, 2008).
    \3\ See 78 FR 12,308 (February 22, 2013).
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Discussion

    The Project's Non-Firm Power Formula Rate Schedule SNF-7 expires on 
July 31, 2013. The formula rate, calculated annually, transfers 
reimbursable expenses not recovered by contract into the Central Valley 
Project power revenue requirement. The existing formula rate 
methodology collects annual revenue sufficient to recover annual 
expenses, including interest, capital requirements, and deficit 
recovery, thus ensuring Project repayment within the cost recovery 
criteria set forth in DOE Order RA 6120.2.
    For the extension period, August 1, 2013, through September 30, 
2017, there is no adjustment to the formula rate. Under the formula 
rate, the forecasted annual revenue is $361,000, a reduction of 
approximately $418,000 from the prior rate period, August 1, 2008, 
through July 31, 2013, due to completion of deficit repayment. The 
Project is scheduled to recover the remaining $1.6 million deficit by 
2015 and all appropriate costs. Rate Order No. WAPA-160 extends the 
existing Rate Schedule SNF-7 through September 30, 2017, thereby 
continuing to ensure Project repayment within the cost recovery 
criteria.

Order

    In view of the above and under the authority delegated to me, I 
hereby extend, on an interim basis, the existing Non-Firm Power Formula 
Rate Schedule SNF-7. Rate Order No. WAPA-160 extends, without 
adjustment, the existing formula rate through September 30, 2017. The 
formula rate shall be in effect pending the FERC confirmation and 
approval of this extension or substitute rate on a final basis.
    Dated: April 23, 2013.

Daniel B. Poneman,
Acting Secretary.

[FR Doc. 2013-10125 Filed 4-29-13; 8:45 am]
BILLING CODE 6450-01-P