[Federal Register Volume 80, Number 29 (Thursday, February 12, 2015)]
[Notices]
[Pages 7863-7864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02981]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Provo River Project Rate Order No. WAPA-165

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Rate Order Concerning a Formula Rate.

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SUMMARY: Western Area Power Administration (Western) extends, on an 
interim basis, the existing Provo River Project Formula Rate through 
March 31, 2020. The existing Formula Rate under Rate Order No. WAPA-149 
expires on March 31, 2015. The Formula Rate will be in effect until the 
Federal Energy Regulatory Commission (FERC) places it into effect on a 
final basis or until it is replaced by another rate.

DATES: This action is effective April 1, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Lynn C. Jeka, Colorado River 
Storage Project (CRSP) Manager, CRSP Management Center, 150 East Social 
Hall Avenue, Suite 300, Salt Lake City, UT 84111-1580, telephone (801) 
524-6372, email: [email protected], or Mr. Rodney Bailey, Power Marketing 
Manager, CRSP Management Center, 150 East Social Hall Avenue, Suite 
300, Salt Lake City, UT 84111-1580, telephone (801) 524-4007, email: 
[email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00A, 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 
Delegation Order No. 00-37.00A and Department of Energy (DOE) rate 
extension procedures at 10 CFR 903.23(a).
    Under Delegation Order No. 0204-108 and existing DOE procedures for 
public participation in rate adjustments at 10 CFR part 903, Western's 
Provo River Formula Rate was submitted to FERC for confirmation and 
approval on February 2, 2010. The Provo River Formula Rate, Rate Order 
No. WAPA-149, was approved for 5 years beginning April 1, 2010, and 
ending March 31, 2015.
    The Provo River Project, which includes Deer Creek Dam on the Provo 
River in Utah, was authorized in 1935. Construction of the dam began in 
1938 and was completed in 1951. The Deer Creek Powerplant was 
authorized on August 20, 1951; construction began in 1956 and was 
completed in 1958; generation began that same year. Its maximum 
operating capacity is 5,200 kilowatts.
    The Provo River Project's power is sold according to a marketing 
plan that was published in the Federal Register on November 21, 1994 
(59 FR 60010).

[[Page 7864]]

This marketing plan allows Western to sell the output of the Provo 
River Project to Utah Municipal Power Agency, Utah Associated Municipal 
Power Systems, and Heber Light and Power (Customers) in the Provo River 
drainage area.
    Contract Nos. 94-SLC-0253, 94-SLC-0254, and 07-SLC-0601 between the 
United States and Customers require that each fiscal year (FY) a new 
annual installment be calculated in advance by Western and submitted to 
the Customers on or before August 31 of the year preceding the 
applicable FY. Each FY Western prepares a power repayment study, which 
includes estimates of operation, maintenance, and replacement costs for 
the Deer Creek Powerplant. The annual installment is adjusted on or 
before August 31 of the year preceding the FY to which it pertains, and 
Western identifies this amount in contract revisions. Each annual 
installment pays the amortized portion of the United States' investment 
in the Deer Creek hydroelectric facilities, with interest, and the 
associated operation, maintenance, and administrative costs. This 
repayment schedule is not dependent upon the capacity and associated 
energy made available for sale each year.
    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. On October 6, 2014, Western published a notice of proposed 
extension in the Federal Register [(79 FR 60153)].
    Following review of Western's proposal within DOE, I hereby 
approve, on an interim basis, Rate Order No. WAPA-165, which extends, 
without adjustment, the existing Formula Rate through March 31, 2020. 
Rate Order No. WAPA-165 will be submitted to FERC for confirmation and 
approval on a final basis.

    Dated: February 4, 2015.
Elizabeth Sherwood-Randall,
Deputy Secretary.

Department of Energy

Deputy Secretary

In the matter of:

Western Area Power Administration Formula Rate for the Provo River 
Project

Rate Order No. WAPA-165

Order Confirming, Approving, and Placing the Formula Rate for the Provo 
River Project Into Effect on an Interim Basis

    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. 00-037.00A, 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; 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 November 2, 2010, FERC confirmed and approved the existing 
Formula Rate for the Provo River Project under Rate Order No. WAPA-
149.\1\ FERC approved this Rate Order for 5 years beginning April 1, 
2010, through March 31, 2015. On October 6, 2014, pursuant to 10 CFR 
903.23(a), Western filed a notice in the Federal Register proposing to 
extend, without adjustment, Provo River Project's Formula Rate as Rate 
Order No. WAPA-165.\2\ Consistent with its regulations at 10 CFR 
903.23(a), Western did not hold a consultation and comment period; 
however, the customers were notified of Western's intent to extend the 
current Formula Rate during the Provo River Project Annual Customer 
Meeting on April 22, 2014, and later through certified letter. Western 
has received notifications from the customers through letter and email 
that they wish to have Western extend the Provo River Project Formula 
Rate.
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    \1\ See U.S. Dept. of Energy, Western Area Power Admin., Docket 
No, EF10-5-000, 133 FERC ] 62,112 (2010).
    \2\ See 79 FR 60153 (October 6, 2014).
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Discussion

    The Provo River Project's Formula Rate under Rate Order No. WAPA-
149 expires on March 31, 2015. Contract Nos. 94-SLC-0253, 94-SLC-0254, 
and 07-SLC-0601 between the United States and customers require that 
each fiscal year (FY) a new annual installment be calculated in advance 
by Western and submitted to the customers on or before August 31 of the 
year preceding the appropriate FY. Each FY Western prepares a power 
repayment study, which includes estimates of operation, maintenance, 
and replacement costs for the Deer Creek Powerplant. The annual 
installment is adjusted on or before August 31 of the year preceding 
the FY to which it pertains, and Western identifies this amount in 
contract revisions. Each annual installment pays the amortized portion 
of the United States' investment in the Deer Creek hydroelectric 
facilities, with interest, and the associated operation, maintenance, 
and administrative costs. This repayment schedule is not dependent upon 
the capacity and associated energy made available for sale each year.
    There is no adjustment to the Formula Rate for the extension 
period, April 1, 2015, through March 31, 2020. The forecasted revenue 
for the extension period is $2,017,986 with an increase of 
approximately $218,060 from the prior rate period, due mostly to 
projected turbine replacements. The data is projected 6 years because 
FY 2015 is an estimate used for the current FY 2015 annual installment.

Order

    In view of the foregoing and under the authority delegated to me, I 
confirm, approve, and place into effect on an interim basis an 
extension of the Formula Rate, effective April 1, 2015. The Formula 
Rate shall remain in effect on an interim basis, pending FERC's 
confirmation and approval of this or a substitute Formula Rate on a 
final basis, through March 31, 2020.
    Dated: February 4, 2015

Elizabeth Sherwood-Randall

Deputy Secretary
[FR Doc. 2015-02981 Filed 2-11-15; 8:45 am]
BILLING CODE 6450-01-P