[Federal Register Volume 79, Number 125 (Monday, June 30, 2014)]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15272]
DEPARTMENT OF ENERGY
Bonneville Power Administration
[BPA File No.: PNCA-14]
Proposed Changes to the Interchange Energy Imbalances Rate Under
the Pacific Northwest Coordination Agreement (PNCA)
AGENCY: Bonneville Power Administration (BPA or Bonneville), Department
of Energy (DOE).
ACTIONS: Notice of Proposed Adjustment to Interchange Energy Imbalances
Rate under the Pacific Northwest Coordination Agreement (PNCA).
SUMMARY: BPA is holding this proceeding, Docket No. PNCA-14, to
establish a new Interchange Energy Imbalances rate under the PNCA.
The Pacific Northwest Electric Power Planning and Conservation Act
(Northwest Power Act) provides that BPA must establish and periodically
review and revise its rates so that they are adequate to recover, in
accordance with sound business principles, the costs associated with
the acquisition, conservation, and transmission of electric power,
including amortization of the Federal investment in the Federal
Columbia River Power System (FCRPS) over a reasonable number of years
and BPA's other costs and expenses. The Northwest Power Act also
requires that BPA's rates be established based on the record of a
formal hearing. By this notice, BPA announces the commencement of a
rate adjustment proceeding for establishment of a new Interchange
Energy Imbalances rate under the PNCA.
DATES: Anyone wishing to become a party to the PNCA-14 proceeding must
provide written notice, via U.S. Mail or electronic mail, which must be
received by BPA no later than 3:00 p.m. on July 10, 2014.
The PNCA-14 rate adjustment proceeding begins with a prehearing
conference at 9:00 a.m. on July 9, 2014, in the BPA Rates Hearing Room,
1201 Lloyd Blvd., Suite 200, Portland, Oregon 97232.
Written comments by non-party participants must be received by
August 15, 2014, to be considered in the Administrator's Record of
ADDRESSES: 1. Petitions to intervene should be directed to: Hearing
Clerk--L-7, Bonneville Power Administration, 905 NE. 11th Avenue,
Portland, Oregon 97232, or may be emailed to [email protected]. In
addition, copies of the petition must be served concurrently on BPA's
General Counsel and directed to both Mr. Peter J. Burger, LP-7, Office
of General Counsel, 905 NE. 11th Avenue, Portland, Oregon 97232, or via
email to [email protected] (see section III.A. for more information
2. Written comments by participants should be submitted to the
Public Affairs Office, DKE-7, Bonneville Power Administration, P.O. Box
14428, Portland, Oregon 97293. Participants may also submit comments by
email at: www.bpa.gov/comment. BPA requests that all comments and
documents intended to be part of the Official Record in this rate
proceeding contain the designation PNCA-14 in the subject line.
FOR FURTHER INFORMATION CONTACT: Ms. Heidi Y. Helwig, DKC-7,
Supervisory Public Affairs Specialist, Bonneville Power Administration,
P.O. Box 3621, Portland, Oregon 97208; by phone toll free at 1-800-622-
4520; or via email to [email protected]. Responsible Officials: Mr.
Robert Diffely, BPA's PNCA Representative, is the official responsible
for the development of BPA's Interchange Energy rate.
Table of Contents
Part I. Introduction and Procedural Background
Part II. Purpose and Scope of the PNCA-14 Rate Proceeding
Part III. Public Participation in BP-14
Part IV. Summary of Rate Proposals
Part I--Introduction and Procedural Background
Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i),
requires that BPA's rates be established according to certain
procedures, including publication in the Federal Register of this
notice of the proposed rates; one or more hearings conducted as
expeditiously as practicable by a Hearing Officer; opportunity for both
oral presentation and written submission of views, data, questions, and
arguments related to the proposed rates; and a decision by the
Administrator based on the record. BPA's rate proceedings are further
governed by BPA's Procedures Governing Bonneville Power Administration
Rate Hearings, 51 FR 7611 (March 5, 1986), which implement and expand
the statutory requirements.
This proceeding is being conducted under the rule for Expedited
Rate Proceedings, section 1010.10 of BPA's Procedures. BPA is proposing
to use the Expedited Rate Proceedings because BPA is only proposing a
change to the index used to price the balance of interchange energy
between pairs of parties to the PNCA. The PNCA calls for the
application of the Dow Jones Mid-C Index (Dow Jones Index) to price
imbalance energy. The Dow Jones Index is no longer published and a
replacement index needs to be identified for purposes of pricing the
interchange energy. For this reason, the issues in this proceeding are
anticipated to be very limited. Given these circumstances, BPA believes
that a 90-day Expedited Rate Proceeding is sufficient to develop a full
and complete record. If it is determined that additional time is
required, the hearing officer may petition the Administrator for
additional time as provided under Rule 1010.10(b). A proposed schedule
for the proceeding is provided below. A final schedule will be
established by the Hearing Officer at the prehearing conference.
BPA Direct Case--July 9, 2014
Prehearing Conference--July 9, 2014
Deadline to Intervene--July 10, 2014
Data Request Deadline--July 22, 2014
Data Response Deadline--July 29, 2014
Parties file Direct Case--August 1, 2014
Data Request Deadline--August 8, 2014
Data Response Deadline--August 15, 2014
Close of Participant Comments--August 15, 2014
Litigants file Rebuttal--August 25, 2014
Data Request Deadline--September 2, 2014
Data Response Deadline--September 9, 2014
Cross-Examination--September 12, 2014
Initial Briefs Filed--September 19, 2014
Briefs on Exceptions--September 26, 2014
Final ROD--Final Studies--October 8, 2014
Section 1010.7 of BPA's Procedures prohibits ex parte
communications. The ex parte rule applies to all BPA and DOE employees
and contractors. Except as provided below, any outside communications
with BPA and/or DOE personnel regarding the merits of any issue in
BPA's rate proceeding by other Executive Branch agencies, Congress,
existing or potential BPA customers (including tribes), or nonprofit or
public interest groups are considered outside communications and are
subject to the
ex parte rule. The rule does not apply to communications relating to:
(1) Matters of procedure only (the status of the rate proceeding, for
example); (2) exchanges of data in the course of business or under the
Freedom of Information Act; (3) requests for factual information; (4)
matters for which BPA is responsible under statutes other than the
ratemaking provisions; or (5) matters which all parties agree may be
made on an ex parte basis. The ex parte rule remains in effect until
the Administrator's Final ROD is issued, which is scheduled to occur on
or about October 8, 2014.
Part II--Purpose and Scope of the PNCA-14 Rate Proceeding
A. Circumstances Necessitating the Proposed Change
In PNCA-02, BPA established a rate for Interchange Energy under the
PNCA contract. The PNCA-02 proceeding adopted a rate that was linked to
a market index. The Dow Jones Mid-Columbia Firm index was chosen as the
index for pricing the energy. The sole purpose of this proceeding is to
propose a replacement for the index used to price the balance of
interchange energy exchanged between pairs of parties to the PNCA. Dow
Jones ceased publication of the Dow Jones Mid-C Index in 2013 so
currently there is no index to price this energy. BPA is proposing to
substitute the Intercontinental Exchange Mid-C Index for the Dow Jones
index. In addition to replacing the Dow Jones Index, BPA is also
proposing to place a floor of $0.00/MWh for energy provided for the
Interchange Energy imbalances. The purpose of the floor is to avoid
having a PNCA party pay another PNCA party when it provides Interchange
Energy during periods when Intercontinental Exchange has negative
The scope of this proceeding is limited to the appropriateness of
substituting the Intercontinental Exchange as the index used to price
the energy and the additional proposal to place a floor on the index
price of $0.00/MWh. Pursuant to Sec. 1010.3(f) of BPA's Procedures,
the Administrator hereby directs the Hearing Officer to exclude from
the record all argument, testimony, or other evidence that seeks in any
way to address matters outside of these two issues.
C. The National Environmental Policy Act (NEPA)
BPA is in the process of assessing the potential environmental
effects of its proposal, consistent with NEPA. A preliminary review of
the proposal indicates that it involves solely administrative and
financial matters that appear to fall within a class of actions that
are categorically excluded from further NEPA review pursuant to
applicable NEPA regulations. Comments regarding the potential
environmental effects of the proposal may be submitted to Katherine S.
Pierce, NEPA Compliance Officer, KEC-4, Bonneville Power
Administration, 905 NE. 11th Avenue, Portland, OR 97232. Any such
comments received by the comment deadline for Participant Comments
identified in section III.A. below will be considered by BPA's NEPA
compliance staff in the NEPA process that will be conducted for this
Part III--Public Participation in BP-14
A. Distinguishing Between ``Participants'' and ``Parties''
BPA distinguishes between ``participants in'' and ``parties to''
the hearings. Apart from the formal hearing process, BPA will receive
written comments, views, opinions, and information from
``participants,'' who may submit comments without being subject to the
duties of, or having the privileges of, parties. Participants' written
comments will be made part of the official record and considered by the
Administrator. Participants are not entitled to take part in the
prehearing conference; may not cross-examine parties' witnesses, seek
discovery, or serve or be served with documents; and are not subject to
the same procedural requirements as parties. BPA customers whose rates
are subject to this proceeding, or their affiliated customer groups,
may not submit participant comments. Members or employees of
organizations that have intervened in the rate proceeding may submit
general comments as participants but may not use the comment procedures
to address specific issues raised by their intervenor organizations.
Written comments by participants will be included in the record if
they are received by August 15, 2014. Written views, supporting
information, questions, and arguments should be submitted to the
address listed in the ADDRESSES section of this notice.
Entities or persons become parties to the proceeding by filing
petitions to intervene, which must state the name and address of the
entity or person requesting party status and the entity's or person's
interest in the hearing. BPA customers and affiliated customer groups
will be granted intervention based on petitions filed in conformance
with BPA's Procedures. Other petitioners must explain their interests
in sufficient detail to permit the Hearing Officer to determine whether
the petitioners have a relevant interest in the hearing. Pursuant to
Rule 1010.1(d) of BPA's Procedures, BPA waives the requirement in Rule
1010.4(d) that an opposition to an intervention petition be filed and
served 24 hours before the prehearing conference. The time limit for
opposing a timely intervention will be established at the prehearing
conference. Any party, including BPA, may oppose a petition for
intervention. All petitions will be ruled on by the Hearing Officer.
Late interventions are strongly disfavored. Opposition to an untimely
petition to intervene must be filed and received by BPA within two days
after service of the petition.
B. Developing the Record
The hearing record will include, among other things, the
transcripts of the hearing, written evidence and argument entered into
the record by BPA and the parties, written comments from participants,
and other material accepted into the record by the Hearing Officer. The
Hearing Officer will review the record and certify the record to the
Administrator for final decision.
The Administrator will make a decision on the modification to the
PNCA Interchange Energy rate based on the record and such other
materials and information as may have been submitted to or developed by
the Administrator. The Administrator will serve copies of the Final ROD
on all parties. BPA will file its rates with the Commission for
confirmation and approval after issuance of the Final ROD.
Part IV--Summary of Rate Proposal
A. Initial Deliveries of IE
This charge applies to IE delivered from BPA to another PNCA party.
C = (IDON * ION) + (IDOFF *
Where for each day
C = Daily charge for Initial Deliveries of ID in Dollars
IDON = The Initial Deliveries of IE made during the day
during On Peak hours.
ION = The Intercontinental Exchange Mid-C index for On
Peak hours in dollars per megawatt hour, but ION shall
not be less than $0.00 per megawatt hour.
IDOFF = The Initial Deliveries of IE made during the day
during Off Peak hours.
IOFF = The Intercontinental Exchange Mid-C index for Off
Peak hours in dollars per megawatt hour, but ION shall
not be less than $0.00 per megawatt hour.
Initial Deliveries of IE on Sunday or a NERC (or its successor
recognized holidays are priced at the Off Peak rate.
B. Return of IE
This charge applies to the return of ID that was initially
delivered to BPA from another PNCA party. The charge is as follows:
CPARTY = IERPARTY * RPARTY
Where for each PNCA Party for a given day:
CPARTY = Daily charge for the return of such PNCA party's
IE in dollars
IERPARTY = The quantity of IE returned to a PNCA party on
a day in megawatt hours
RPARTY = the applicable IE return rate for the PNCA party
for the given day as calculated in in Formula 3 below in dollars per
RPARTY = [sum]CPARTY / [sum]IERPARTY
Where for each PNCA Party for a given day:
RPARTY = the IE return rate calculated for the PNCA party
as of the given day in dollars per megawatt hours.
[sum]CPARTY = all payments received by BPA from such PNCA
party from the date of the last cash out of IE Imbalances to the
date BPA returns the ID, in dollars
[sum]IERPARTY = the net of all IE BPA has received from
such PNCA party and the IE returned by BPA to such PNCA party from
the date of the last cash out of IE Imbalances to the date BPA
returns the IE, in megawatt hours.
Issued this 19th day of June 2014.
Elliot E. Mainzer,
Administrator and Chief Executive Officer.
[FR Doc. 2014-15272 Filed 6-27-14; 8:45 am]
BILLING CODE 6450-01-P