[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)]
[Notices]
[Pages 44100-44102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18235]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Arizona Project--Rate Order No. WAPA-172

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Transmission Rates.

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SUMMARY: The Western Area Power Administration (Western), a power 
marketing administration within the Department of Energy (DOE), is 
proposing an adjustment to the Central Arizona Project (CAP) 
transmission rates for firm point-to-point transmission service, non-
firm point-to-point transmission service, and Network Integration 
Transmission Service (NITS) on the CAP 115/230-kilovolt (kV) 
transmission lines. Current rates, under Rate Schedules CAP-FT2, CAP-
NFT2 and CAP-NITS2, expire December 31, 2015. Western is not proposing 
any changes to the existing rate-setting formula through December 31, 
2020, but is proposing to adjust the existing rates to provide 
sufficient revenue to cover all annual costs, including interest 
expenses, and to repay required investment within the allowable period. 
Western is also proposing to begin charging for short-term transmission 
service on the Navajo (500-kV) portion of the CAP under Rate Schedule 
CAP-NFT3. Western currently markets excess transmission service from 
the Navajo (500-kV) portion of the CAP on a short-term (less than 12 
months) basis at current CAP 115/230-kV rates under Western's 
Administrator's authority to set rates for short-term sales (Department 
of Energy Delegation Order No. 00-037.00A, ]1.5). Western will prepare 
and provide a brochure detailing information on the proposed rates. 
Proposed rates, under Rate Schedules CAP-FT3, CAP-NFT3, and CAP-NITS3, 
are scheduled to go into effect on January 1, 2016, and remain in 
effect through December 31, 2020. Publication of this Federal Register 
notice begins the formal process for the proposed rates.

DATES: The consultation and comment period begins today and will end 
October 22, 2015. Western will present a detailed explanation of the 
proposed rates at a public information forum on August 27, 2015, 
beginning at 10:00 a.m. MST, in Phoenix, Arizona. Western will accept 
oral and written comments at a public comment forum on September 24, 
2015, beginning at 10:00 a.m. MST, in Phoenix, Arizona. Western will 
accept written comments any time during the 90-day consultation and 
comment period.

ADDRESSES: The public information forum and public comment forum will 
be held at the Desert Southwest Customer Service Regional Office, 
located at 615 South 43 Avenue, Phoenix, Arizona, on the dates cited 
above. Written comments should be sent to Mr. Ronald E. Moulton, Senior 
Vice President and Desert Southwest Regional Manager, Desert Southwest 
Customer Service Region, Western Area Power Administration, P.O. Box 
6457, Phoenix, Arizona 85005-6457, email [email protected]. Written 
comments may also be faxed to (602) 605-2490, attention: Mr. Jack 
Murray, Rates Manager. Western will post official information about the 
rate process on its Web site at http://www.wapa.gov/dsw/pwrmkt/CAPTRP/CAPTRP.htm. Western will also post official comments received via 
letter, fax and email to this Web site. Western must receive written 
comments by the end of the consultation and comment period to ensure 
they are considered in Western's decision-making process. For more 
information regarding attending the forum, see the Attendance at the 
Forum section of this notice.

FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert 
Southwest Customer Service Region, Western Area Power Administration, 
P.O. Box 6457, Phoenix, Arizona 85005-

[[Page 44101]]

6457, telephone (602) 605-2442, email [email protected].

SUPPLEMENTARY INFORMATION: The existing Rate Schedules CAP-FT2, CAP-
NFT2, and 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. The schedules received final approval from the Federal Energy 
Regulatory Commission (FERC) on June 29, 2006. Rate Order No. WAPA-153 
\2\ extended these rate schedules for a 2-year period, beginning 
January 1, 2011, through December 31, 2012. Rate Order No. WAPA-158 \3\ 
extended these rate schedules for a 3-year period beginning January 1, 
2013, through December 31, 2015. Western's Administrator, under the 
authority delegated to set rates for short-term sales, approved sales 
of excess Navajo transmission service at the effective CAP 115/230-kV 
transmission rate. This approval, which only applies to sales of short-
term (less than 12 months) transmission service on the Navajo system, 
was approved effective September 1, 2011. Western is proposing a 
modification to the Applicability section of Rate Schedule CAP-NFT3 to 
include the marketing of short-term Navajo transmission service at the 
effective CAP transmission service rate.
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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 United States Department 
of Energy, Western Area Power Administration, Central Arizona 
Project, 115 FERC ] 62,326.
    \2\ 76 FR 548 (January 5, 2011).
    \3\ 78 FR 18335 (March 26, 2013).
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    Proposed rates for point-to-point transmission service and NITS on 
the CAP 115/230-kV transmission system are based on a revenue 
requirement that recovers the investment on the CAP transmission lines, 
costs for facilities associated with providing transmission service and 
non-facility costs allocated to transmission service. Proposed rates 
for point-to-point transmission service on the CAP 115/230-kV 
transmission system are determined by combining the average annual 
amortization costs with the average annual operations and maintenance 
costs, and dividing them by the average annual long-term firm 
transmission service reservations for the cost evaluation period 
(fiscal years 2016-2020).

                 Table 1--Existing and Proposed Rates for Firm and Non-Firm Transmission Service
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                                           Existing rates January 1,
             Type of service               2015 through December 31,  Proposed rates CAP 115/230- Percent change
                                                     2015              kV system (Jan. 1, 2016)
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Firm Transmission Service...............  $13.56/kW-year............  $14.88/kW-year............              10
Non-firm Transmission Service...........  1.55 mills/kWh............  1.70 mills/kWh............              10
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    The table above compares the existing and proposed rates for 
transmission service. The proposed rates result in a firm point-to-
point CAP 115/230-kV transmission rate of $14.88 per kilowattyear and a 
non-firm point-to point CAP 115/230-kV transmission rate of 1.70 mills/
kilowatthour (kWh). The proposed CAP rate reflects a 10 percent rate 
increase compared to the FY 2015 rate due primarily to an increase in 
construction costs to replace the aging ED2-Saguaro line. The 
construction started in 2015 and the costs are expected to be spread 
over a 5-year period. These proposed rates are based on the most 
current financial data available. Prior to their effective date of 
January 1, 2016, these proposed rates are subject to change, consistent 
with the procedures of 10 CFR part 903 if relevant and material 
financial data not previously considered becomes available prior to the 
publication of the final rates.
    NITS allows a transmission customer to integrate, plan, 
economically dispatch, and regulate its network resources to serve its 
native load in a manner comparable to how a transmission provider uses 
its own transmission system to service its native load customers. The 
monthly charge methodology for NITS on the CAP 115/230-kV transmission 
lines is the product of the transmission customer's load-ratio share 
multiplied by one-twelfth of the annual transmission revenue 
requirement. The customer's load-ratio share is calculated on a rolling 
12-month basis. The customer's load-ratio share is equal to that 
customer's hourly load coincident with the CAP 115/230-kV transmission 
lines' monthly transmission system peak divided by the resultant value 
of the CAP 115-kV and 230-kV transmission lines' coincident peak for 
all firm point-to-point transmission service plus the CAP 115/230-kV 
transmission lines' firm point-to-point transmission service 
reservations. The proposed rates include the costs for scheduling, 
system control, and dispatch service. Western's existing rate formula 
requires recalculation of the rates annually based on updated financial 
data.

Attendance at the Forum

    Access to Western facilities is controlled. U.S. citizen's need to 
bring an official form of identification (that meets the requirement of 
the Real ID Act), such as a U.S. driver's license, U.S. passport, U.S. 
Government ID, or U.S. Military ID, which you will be asked to show 
prior to signing in.
    Foreign nationals planning to attend need to contact Mr. Jack 
Murray, Rates Manager, (602) 605-2442, email [email protected], 
immediately to obtain the necessary form for admittance. This form must 
be completed at least 30 days in advance for visitors from non-
sensitive countries; and 45 days in advance for visitors from sensitive 
countries. Failure to complete this approval process may result in 
denial of admittance.

Legal Authority

    Since the proposed rates constitute a major adjustment as defined 
by 10 CFR part 903, Western will hold both a public information forum 
and a public comment forum. Western will review all timely public 
comments and make amendments or adjustment to the proposal, as 
appropriate, consistent with 10 CFR part 903.
    Western is establishing rates for transmission service for CAP 
under the Department of Energy Organization Act (42 U.S.C. 7152); 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 October 25, 2013, 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

[[Page 44102]]

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 FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) were 
published on September 18, 1985.

Availability of Information

    All brochures, studies, comments, letters, memorandums, and other 
documents that Western initiated or used to develop the proposed rates 
are available for inspection and copying at the Desert Southwest 
Customer Service Regional Office, Western Area Power Administration, 
located at 615 South 43 Avenue, Phoenix, Arizona 85009-5313. Many of 
these documents and supporting information are also available on 
Western's Web site at: http://www.wapa.gov/dsw/pwrmkt/CAPTRP/CAPTRP.htm.

Ratemaking Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969 (42 U.S.C. 4321-4347); Council on Environmental Quality 
Regulations (40 CFR parts 1500-1508); and DOE NEPA Regulations (10 CFR 
part 1021), Western is in the process of determining whether an 
environmental assessment or an environmental impact statement should be 
prepared or if this action can be categorically excluded from those 
requirements.

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.

    Dated: July 17, 2015.
Mark A. Gabriel,
Administrator.
[FR Doc. 2015-18235 Filed 7-23-15; 8:45 am]
 BILLING CODE 6450-01-P