[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Notices]
[Pages 57353-57371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24196]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Kerr-Philpott System

AGENCY: Southeastern Power Administration, (Southeastern), Department 
of Energy.

ACTION: Notice of interim approval.

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SUMMARY: The Deputy Secretary, Department of Energy, confirmed and 
approved, on an interim basis new rate schedules VA-1-C, VA-2-C, VA-3-
C, VA-4-C, DEP-1-C, DEP-2-C, DEP-3-C, DEP-4-C, AP-1-C, AP-2-C, AP-3-C, 
AP-4-C, NC-1-C, and Replacement-2-B. These rate schedules are 
applicable to Southeastern power sold to existing preference customers 
in the Virginia and North Carolina service area. The rate schedules are 
approved on an interim basis through September 30, 2020, and are 
subject to confirmation and approval by the Federal Energy Regulatory 
Commission (FERC) on a final basis.

DATES: The rates are effective October 1, 2015.

FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs III, Assistant 
Administrator, Finance and Marketing, Southeastern Power 
Administration, Department of Energy, 1166 Athens Tech Road, Elberton, 
Georgia 30635-4578, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by 
Order issued March 11, 2011, in Docket No. EF10-8-000 (134 FERC 
62,233), confirmed and approved Wholesale Power Rate Schedules VA-1-B, 
VA-2-B, VA-3-B, VA-4-B, CP&L-1-B, CP&L-2-B, CP&L-3-B, CP&L-4-B, AP-1-B, 
AP-2-B, AP-3-B, AP-4-B, NC-1-B, and Replacement-2-A through September 
30, 2015. This order replaces these rate schedules on an interim basis, 
subject to final approval by FERC.

    Dated: September 16, 2015.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

Department of Energy

Deputy Secretary

In the Matter of: Southeastern Power Administration), Kerr-Philpott 
System Power Rates), Rate Order No. SEPA-58

Order Confirming and Approving Power Rates on an Interim Basis

    Pursuant to Sections 302(a) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern 
Power Administration (Southeastern), were transferred to and vested in 
the Secretary of Energy. By Delegation Order No. 00-037.00A, effective 
December 6, 2001, the Secretary of Energy delegated to Southeastern's 
Administrator the authority to develop power and transmission rates, to 
the Deputy Secretary of Energy the authority to confirm, approve, and 
place in effect such rates on interim basis, and to the Federal Energy 
Regulatory Commission (FERC) the authority to confirm, approve, and 
place into effect on a final basis or to disapprove rates developed by 
the Administrator under the delegation. This rate is issued by the 
Deputy Secretary pursuant to that delegation order.

Background

    Power from the Kerr-Philpott Projects is presently sold under 
Wholesale

[[Page 57354]]

Power Rate Schedules VA-1-B, VA-2-B, VA-3-B, VA-4-B, CP&L-1-B, CP&L-2-
B, CP&L-3-B, CP&L-4-B, AP-1-B, AP-2-B, AP-3-B, AP-4-B, NC-1-B, and 
Replacement-2-A. These rate schedules were approved by the FERC on 
March 11, 2011, for a period ending September 30, 2015 (134 FERC 
62,233).

Public Notice and Comment

    Notice of a proposed rate adjustment for the Kerr-Philpott System 
was published in the Federal Register (80 FR 12819) on March 11, 2015. 
The notice advised interested parties that a public information and 
comment forum would be held in Boydton, Virginia on April 21, 2015. 
Written comments were due on or before June 9, 2015. The proposed rate 
adjustment was a reduction of about six percent (6%).
    Subsequent to the Public Information and Comment Forum on April 21, 
Southeastern discovered an error due to omissions in the repayment 
study used to develop the proposed rate schedules. Two accounting lines 
were omitted from the estimated Corps O&M expenses included in the 
study. The accounting lines were Work Category Code 602, Operation for 
Flood Damage Reduction, and Work Category Code 612, Maintenance for 
Flood Damage Reduction. On June 1, 2015, Southeastern sent a letter to 
all Kerr-Philpott customers notifying them of the error and notifying 
them Southeastern intended to add the omitted accounting lines and 
correct the error in the rate schedules Southeastern would recommend to 
the Deputy Secretary. After these corrections, the proposed rate is an 
increase of about 2.2 percent.
    Southeastern received comments from one source, the Southeast 
Federal Power Customers, Inc., as a result of the above notifications. 
The comments and Southeastern's response are below.
    Comment: The SeFPC questions whether the expenses in accounts WCC 
602 and 612 should properly be assigned to hydropower as a joint 
expense. Given the Congressional Mandate to provide flood control at 
the Kerr and Philpott projects, the assignment of these costs appears 
to be arbitrary, capricious, and not consistent with the authorizing 
statutes. The SeFPC would ask SEPA to review the inclusion of these 
costs and work with Corps representatives to remove such expenses as 
joint expense for purpose of the proposed rate. Failure to take this 
action would impose over $10 million in additional cost for the 
hydropower customers over the five year study period in the repayment 
study which should properly be borne by the flood control purpose.
    The referenced Work Category Codes 602 and 612 contain operation 
and maintenance expenses associated with flood risk management. The 
Corps has taken the position the John H. Kerr and Philpott final cost 
allocations state that the only specific costs at these reservoirs are 
Power and Recreation, and that as a result, the Corps cannot charge 
costs to the flood control purpose at these projects.
    The $10 million assigned to hydropower and disputed by SeFPC 
include the operations, maintenance and readiness of equipment 
associated with spillways, sluices, pumping plants and earthen dams. 
The Corps has included these costs in the O&M expenses included in the 
financial statements provided to Southeastern for the John H. Kerr and 
Philpott projects. SeFPC has raised legitimate questions about the 
nature and assignment of WCC s 602 and 612. Further study of this issue 
is necessary. Southeastern will continue to discuss with the Corps the 
appropriateness of assigning these costs solely to hydropower.
    Southeastern and the Corps have discussed the need for a new 
authorized purpose allocation study and agreed to jointly fund the 
effort. Once completed, Southeastern and the Corps will work together 
to determine whether costs in these accounts should be allocated to 
purposes other than Power and Recreation. A reallocation could 
significantly reduce the proportion of charges assigned to 
Southeastern's power customers and ensure that costs are being assigned 
to appropriate cost-causers.

Discussion

System Repayment

    An examination of Southeastern's revised system power repayment 
study, prepared in July 2015, for the Kerr-Philpott System shows that 
with the proposed rates, all system power costs are paid within the 
appropriate repayment period required by existing law and DOE Procedure 
RA 6120.2. The Administrator of Southeastern Power Administration has 
certified that the rates are consistent with applicable law and that 
they are the lowest possible rates to customers consistent with sound 
business principles, pursuant to section 5 of the Flood Control Act (16 
U.S.C.A.835(s)).

Environmental Impact

    Southeastern has reviewed the possible environmental impacts of the 
rate adjustment under consideration and has concluded that, because the 
adjusted rates would not significantly affect the quality of the human 
environment within the meaning of the National Environmental Policy Act 
of 1969 (42 U.S.C.A 4332), the proposed action is not a major Federal 
action for which preparation of an Environmental Impact Statement is 
required.

Availability of Information

    Information regarding these rates, including studies and other 
supporting materials and transcripts of the public information and 
comment forum, is available for public review in the offices of 
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, 
Georgia 30635, and in the Power Marketing Liaison Office, James 
Forrestal Building, 1000 Independence Avenue SW., Washington, DC 20585.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective October 1, 2015, attached Wholesale Power Rate 
Schedules VA-1-C, VA-2-C, VA-3-C, VA-4-C, DEP-1-C, DEP-2-C, DEP-3-C, 
DEP-4-C, AP-1-C, AP-2-C, AP-3-C, AP-4-C, NC-1-C, and Replacement-2-B. 
The Rate Schedules shall remain in effect on an interim basis through 
September 30, 2020, unless such period is extended or until the FERC 
confirms and approves them or substitutes Rate Schedules on a final 
basis.

Dated: September 16, 2015.

Elizabeth Sherwood-Randall
Deputy Secretary of Energy

Wholesale Power Rate Schedule VA-1-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted and 
scheduled pursuant to contracts between the Government, Virginia 
Electric and Power Company (hereinafter called the Company), the 
Company's Transmission Operator, currently PJM Interconnection LLC 
(hereinafter called PJM), and the Customer. This rate schedule is 
applicable to customers receiving power from the Government on an 
arrangement where the Company schedules the power and provides the 
Customer a credit on their bill for Government power. Nothing in this 
rate schedule shall preclude modifications to the aforementioned 
contracts to allow an eligible customer to elect service under another 
rate schedule.
    Applicability:

[[Page 57355]]

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................         $2,730,000         $3,220,000
2017..............................         $2,420,000         $5,640,000
2018..............................         $1,910,000         $7,550,000
2019..............................         $1,910,000         $9,460,000
2020..............................         $2,010,000        $11,470,000
2021..............................         $2,110,000        $13,580,000
2022..............................         $2,190,000        $15,770,000
2023..............................         $2,290,000        $18,060,000
2024..............................         $2,400,000        $20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and any ancillary services 
provided under this rate schedule shall be the rates charged 
Southeastern Power Administration by the Company or PJM. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission (FERC) of the 
Company's rate.
    Transmission:
    $0.775 per kilowatt of total contract demand per month estimated as 
of April 2015, is presented for illustrative purposes.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charge:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts) in the month incurred.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy

[[Page 57356]]

each billing month equivalent to a percentage specified by contract of 
the energy made available to the Company (less applicable losses). The 
Customer's contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Company's system. The applicable energy loss factor for transmission is 
specified in the OATT.
    These losses shall be effective until modified by the FERC, 
pursuant to application by the Company or PJM under Section 205 of the 
Federal Power Act or Southeastern Power Administration under Section 
206 of the Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule VA-2-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted pursuant 
to contracts between the Government, Virginia Electric and Power 
Company (hereinafter called the Company), the Company's Transmission 
Operator, currently PJM Interconnection LLC (hereinafter called PJM), 
and the Customer. The Customer has chosen to self-schedule and does not 
receive Government power under an arrangement where the Company 
schedules the power and provides a credit on the Customer's bill for 
Government power. The Customer is responsible for providing a 
scheduling arrangement with the Government. The Government is 
responsible for arranging transmission with the Company and PJM. 
Nothing in this rate schedule shall preclude modifications to the 
aforementioned contracts to allow an eligible customer to elect service 
under another rate schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and any ancillary services 
provided under this rate schedule shall be the rates charged 
Southeastern Power Administration by the Company or PJM. Future 
adjustments to these rates will become effective upon acceptance for 
filing by the Federal Energy Regulatory Commission (FERC) of the 
Company's rate.
    Transmission:
    $0.775 per kilowatt of total contract demand per month estimated as 
of April 2015, is presented for illustrative purposes.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and ancillary services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may

[[Page 57357]]

charge the Customer for any and all separate transmission, ancillary 
services, and distribution charges paid by the Government in behalf of 
the Customer. These charges could be recovered through a capacity 
charge or an energy charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charge:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts) in the month incurred.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by FERC, pursuant to 
application by the Company or PJM under Section 205 of the Federal 
Power Act or Southeastern Power Administration under Section 206 of the 
Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule VA-3-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be scheduled pursuant to 
contracts between the Government, Virginia Electric and Power Company 
(hereinafter called the Company), the Company's Transmission Operator, 
currently PJM Interconnection LLC (hereinafter called PJM), and the 
Customer. The Government is responsible for providing the scheduling. 
The Customer is responsible for providing a transmission arrangement. 
Nothing in this rate schedule shall preclude modifications to the 
aforementioned contracts to allow an eligible customer to elect service 
under another rate schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base

[[Page 57358]]

capacity charge by $0.02 per kilowatt per month, up to a maximum of 
$0.75 per kilowatt per month, and reduce the base energy charge by 0.10 
mills per kilowatt-hour, up to a maximum of 3.0 mills per kilowatt per 
hour, to be implemented April 1 of the next fiscal year. Southeastern 
will give written notice to the customers of the amount of the true-up 
to the capacity and energy rates by February 1 of the next fiscal year.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company or PJM. Future adjustments to these rates 
will become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charge:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts) in the month incurred.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by the Company or 
PJM under Section 205 of the Federal Power Act or Southeastern Power 
Administration under Section 206 of the Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule VA-4-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina served through the transmission facilities 
of Virginia Electric and Power Company (hereinafter called the Company) 
and PJM Interconnection LLC (hereinafter called PJM). The Customer has 
chosen to self-schedule and does not receive Government power under an 
arrangement where the Company schedules the power and provides a credit 
on the Customer's bill for Government power. The Customer is 
responsible for providing a scheduling arrangement with the Government 
and for providing a transmission arrangement. Nothing in this rate 
schedule shall preclude modifications to the aforementioned contracts 
to allow an eligible customer to elect service under another rate 
schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000

[[Page 57359]]

 
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company or PJM. Future adjustments to these rates 
will become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charge:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts) in the month incurred.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the FERC, 
pursuant to application by the Company or PJM under Section 205 of the 
Federal Power Act or Southeastern Power Administration under Section 
206 of the Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule DEP-1-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be transmitted and 
scheduled pursuant to contracts between the Government and Duke Energy 
Progress (formerly known as Carolina Power & Light Company and 
hereinafter called the Company) and the Customer. This rate schedule is 
applicable to customers receiving power from the Government on an 
arrangement where the Company schedules the power and provides the 
Customer a credit on their bill for Government power. Nothing in this 
rate schedule shall preclude modifications to the aforementioned 
contracts to allow an eligible customer to elect service under another 
rate schedule.
    Applicability:

[[Page 57360]]

    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Transmission:
    $1.546 per kilowatt of total contract demand per month as of April 
2015, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The rate is subject to periodic adjustment and will be 
computed in accordance with the terms of the Government-Company 
contract.
    Proceedings before FERC involving the Company's Open Access 
Transmission Tariff (OATT) or the distribution charge may result in the 
separation of charges currently included in the transmission rate. In 
this event, the Government may charge the Customer for any and all 
separate transmission and distribution charges paid by the Government 
in behalf of the Customer. These charges could be recovered through a 
capacity charge or an energy charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

[[Page 57361]]

Wholesale Power Rate Schedule DEP-2-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be transmitted 
pursuant to contracts between the Government and Duke Energy Progress 
(formerly known as Carolina Power & Light Company and hereinafter 
called the Company) and the Customer. The Customer has chosen to self-
schedule and does not receive Government power under an arrangement 
where the Company schedules the power and provides a credit on the 
Customer's bill for Government power. The Customer is responsible for 
providing a scheduling arrangement with the Government. The Government 
is responsible for arranging transmission with the Company. Nothing in 
this rate schedule shall preclude modifications to the aforementioned 
contracts to allow an eligible customer to elect service under another 
rate schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Transmission:
    $1.546 per kilowatt of total contract demand per month as of April 
2015, is presented for illustrative purposes.
    The initial transmission charge will be the Customer's ratable 
share of the transmission and distribution charges paid by the 
Government. The rate is subject to periodic adjustment and will be 
computed in accordance with the terms of the Government-Company 
contract.
    Proceedings before FERC involving the Company's Open Access 
Transmission Tariff (OATT) or the distribution charge may result in the 
separation of charges currently included in the transmission rate. In 
this event, the Government may charge the Customer for any and all 
separate transmission and distribution charges paid by the Government 
in behalf of the Customer. These charges could be recovered through a 
capacity charge or an energy charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.

[[Page 57362]]

    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule DEP-3-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina to whom power may be scheduled 
pursuant to contracts between the Government and Duke Energy Progress 
(formerly known as Carolina Power & Light Company and hereinafter 
called the Company) and the Customer. The Government is responsible for 
providing the scheduling. The Customer is responsible for providing a 
transmission arrangement. Nothing in this rate schedule shall preclude 
modifications to the aforementioned contracts to allow an eligible 
customer to elect service under another rate schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Proceedings before FERC involving the Company's Open Access 
Transmission Tariff (OATT) or the distribution charge may result in the 
separation of charges currently included in the transmission rate. In 
this event, the Government may charge the Customer for any and all 
separate transmission and distribution charges paid by the Government 
in behalf of the Customer.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or

[[Page 57363]]

an energy charge, as determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule DEP-4-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and South Carolina served through the transmission 
facilities of Duke Energy Progress (formerly known as Carolina Power & 
Light Company and hereinafter called the Company). The Customer has 
chosen to self-schedule and does not receive Government power under an 
arrangement where the Company schedules the power and provides a credit 
on the Customer's bill for Government power. The Customer is 
responsible for providing a scheduling arrangement with the Government 
and for providing a transmission arrangement. Nothing in this rate 
schedule shall preclude modifications to the aforementioned contracts 
to allow an eligible customer to elect service under another rate 
schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or

[[Page 57364]]

an energy charge, as determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission, in accordance with the Government-Company 
contract, is six (6) per cent. This loss factor will be governed by the 
terms of the Government-Company contract.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule AP-1-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia to whom power may be transmitted and scheduled pursuant to 
contracts between the Government, American Electric Power Service 
Corporation (hereinafter called the Company), the Company's 
Transmission Operator, currently PJM Interconnection LLC (hereinafter 
called PJM), and the Customer. This rate schedule is applicable to 
customers receiving power from the Government on an arrangement where 
the Company schedules the power and provides the Customer a credit on 
their bill for Government power. Nothing in this rate schedule shall 
preclude modifications to the aforementioned contracts to allow an 
eligible customer to elect service under another rate schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Transmission:
    $0.775 per kilowatt of total contract demand per month estimated as 
of April 2015, is a presented for illustrative purposes.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are

[[Page 57365]]

governed by and subject to refund based upon the determination in 
proceedings before the FERC involving the Company's or PJM's Open 
Access Transmission Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charge:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts).
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the FERC, 
pursuant to application by the Company or PJM under Section 205 of the 
Federal Power Act or Southeastern Power Administration under Section 
206 of the Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule AP-2-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia to whom power may be transmitted pursuant to contracts between 
the Government, American Electric Power Service Corporation 
(hereinafter called the Company), the Company's Transmission Operator, 
currently PJM Interconnection LLC (hereinafter called PJM), and the 
Customer. The Customer has chosen to self-schedule and does not receive 
Government power under an arrangement where the Company schedules the 
power and provides a credit on the Customer's bill for Government 
power. The Customer is responsible for providing a scheduling 
arrangement with the Government. The Government is responsible for 
arranging transmission with the Company. Nothing in this rate schedule 
shall preclude modifications to the aforementioned contracts to allow 
an eligible customer to elect service under another rate schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Company's 
transmission and distribution system.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table

[[Page 57366]]

above. For every $100,000 under-recovery of the planned cumulative net 
revenue available for repayment, Southeastern will increase the base 
capacity charge by $0.02 per kilowatt per month, up to a maximum of 
$0.75 per kilowatt per month, and increase the base energy charge by 
0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills per kilowatt 
per hour, to be implemented April 1 of the next fiscal year. For every 
$100,000 of over-recovery of the planned cumulative net revenue 
available for repayment, Southeastern will reduce the base capacity 
charge by $0.02 per kilowatt per month, up to a maximum of $0.75 per 
kilowatt per month, and reduce the base energy charge by 0.10 mills per 
kilowatt-hour, up to a maximum of 3.0 mills per kilowatt per hour, to 
be implemented April 1 of the next fiscal year. Southeastern will give 
written notice to the customers of the amount of the true-up to the 
capacity and energy rates by February 1 of the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Transmission:
    $0.775 per kilowatt of total contract demand per month estimated as 
of April 2015, is presented for illustrative purposes.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charges:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts).
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by American 
Electric Power Service Corporation under Section 205 of the Federal 
Power Act or Southeastern Power Administration under Section 206 of the 
Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule AP-3-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia to whom power may be scheduled pursuant to contracts between 
the Government, American Electric Power Service Corporation 
(hereinafter called the Company), PJM Interconnection LLC (hereinafter 
called PJM), and the Customer. The Government is responsible for 
providing the scheduling. The Customer is responsible for providing a 
transmission arrangement. Nothing in this rate schedule shall preclude 
modifications to the aforementioned contracts to allow an eligible 
customer to elect service under another rate schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

[[Page 57367]]



------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charges:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts).
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the FERC, 
pursuant to application by the Company or PJM under Section 205 of the 
Federal Power Act or Southeastern Power Administration under Section 
206 of the Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule AP-4-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia served through the facilities of American Electric Power 
Service Corporation (hereinafter called the Company) and PJM 
Interconnection LLC (hereinafter called PJM). The Customer has chosen 
to self-schedule and does not receive Government power under an 
arrangement where the Company schedules the power and provides a credit 
on the Customer's bill for Government power. The Customer is

[[Page 57368]]

responsible for providing a scheduling arrangement with the Government 
and for providing a transmission arrangement. Nothing in this rate 
schedule shall preclude modifications to the aforementioned contracts 
to allow an eligible customer to elect service under another rate 
schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects (hereinafter called the Projects) and sold under 
appropriate contracts between the Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the Projects.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every $100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for Transmission and Ancillary Services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Company. Future adjustments to these rates will 
become effective upon acceptance for filing by the Federal Energy 
Regulatory Commission (FERC) of the Company's rate.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid by the Government in behalf of the Customer. 
These charges could be recovered through a capacity charge or an energy 
charge, as determined by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Company's or PJM's OATT.
    Capacity Performance Non-Performance Charges:
    Requirements of the PJM capacity performance market may lead to 
non-performance charges to Southeastern. These non-performance charges, 
if incurred, will be allocated to the capacity delivered in PJM 
(currently 120,100 kilowatts).
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will

[[Page 57369]]

purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Company (less applicable losses). The Customer's contract demand and 
accompanying energy will be allocated proportionately to its individual 
delivery points served from the Company's system. The applicable energy 
loss factor for transmission is specified in the OATT.
    These losses shall be effective until modified by the Federal 
Energy Regulatory Commission, pursuant to application by the Company or 
PJM under Section 205 of the Federal Power Act or Southeastern Power 
Administration under Section 206 of the Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule NC-1-C

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
Virginia and North Carolina to whom power may be transmitted pursuant 
to a contract between the Government and Virginia Electric and Power 
Company (hereinafter called the Virginia Power) and PJM Interconnection 
LLC (hereinafter called PJM), scheduled pursuant to a contract between 
the Government and Duke Energy Progress (formerly known as Carolina 
Power & Light and hereinafter called DEP), and billed pursuant to 
contracts between the Government and the Customer. Nothing in this rate 
schedule shall preclude modifications to the aforementioned contracts 
to allow an eligible customer to elect service under another rate 
schedule.
    Applicability:
    This rate schedule shall be applicable to the sale at wholesale of 
power and accompanying energy generated at the John H. Kerr and 
Philpott Projects and sold under appropriate contracts between the 
Government and the Customer.
    Character of Service:
    The electric capacity and energy supplied hereunder will be 
delivered at the delivery points of the Customer on the Virginia 
Power's transmission and distribution system.
    Monthly Rate:
    The initial base monthly rate for capacity, energy, and generation 
services provided under this rate schedule for the period specified 
shall be:
    Initial Base Capacity Charge:
    $4.40 per kilowatt of total contract demand per month.
    Initial Base Energy Charge:
    17.80 mills per kilowatt-hour.
    The rates are based on a repayment study that projects that the 
Kerr-Philpott System will produce the following net revenue available 
for repayment by fiscal year and cumulative net revenue available for 
repayment by fiscal year:

------------------------------------------------------------------------
                                     Estimated annual
                                       net revenue       Cumulative net
            Fiscal year               available for    revenue available
                                        repayment        for repayment
------------------------------------------------------------------------
2015..............................           $490,000           $490,000
2016..............................          2,730,000          3,220,000
2017..............................          2,420,000          5,640,000
2018..............................          1,910,000          7,550,000
2019..............................          1,910,000          9,460,000
2020..............................          2,010,000         11,470,000
2021..............................          2,110,000         13,580,000
2022..............................          2,190,000         15,770,000
2023..............................          2,290,000         18,060,000
2024..............................          2,400,000         20,460,000
------------------------------------------------------------------------

    The rates include a true-up of the capacity and energy rates based 
on the variance of the actual cumulative net revenue available for 
repayment from the planned cumulative net revenue available for 
repayment in the table above. For every 100,000 under-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will increase the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt per hour, to be implemented April 1 of the next 
fiscal year. For every $100,000 of over-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
reduce the base capacity charge by $0.02 per kilowatt per month, up to 
a maximum of $0.75 per kilowatt per month, and reduce the base energy 
charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills 
per kilowatt per hour, to be implemented April 1 of the next fiscal 
year. Southeastern will give written notice to the customers of the 
amount of the true-up to the capacity and energy rates by February 1 of 
the next fiscal year.
    Additional rates for transmission and ancillary services provided 
under this rate schedule shall be the rates charged Southeastern Power 
Administration by the Virginia Power and DEP. Future adjustments to 
these rates will become effective upon acceptance for filing by the 
Federal Energy Regulatory Commission (FERC) of Virginia Power's or 
DEP's rate.
    Transmission:
    $0.775 per kilowatt of total contract demand per month estimated as 
of April 2015, is presented for illustrative purposes.
    Ancillary Services:
    0.34 mills per kilowatt-hour of energy estimated as of April 2015, 
is presented for illustrative purposes.
    The initial charge for transmission and Ancillary Services will be 
the Customer's ratable share of the charges for transmission, 
distribution, and ancillary services paid by the Government. The 
charges for transmission and ancillary services are governed by and 
subject to refund based upon the determination in proceedings before 
the FERC involving the Company's or PJM's Open Access Transmission 
Tariff (OATT).
    Proceedings before FERC involving the OATT or the Distribution 
charge may result in the separation of charges currently included in 
the transmission rate. In this event, the Government may charge the 
Customer for any and all separate transmission, ancillary services, and 
distribution charges paid

[[Page 57370]]

by the Government in behalf of the Customer. These charges could be 
recovered through a capacity charge or an energy charge, as determined 
by the Government.
    Tandem Transmission Charge:
    $0.42 per kilowatt of total contract demand per month, as an 
estimated cost as of April 2015.
    The tandem transmission charge will recover the cost of 
transmitting power from a project to the border of another transmitting 
system. This rate will be a formulary rate based on the cost to the 
Government for transmission of power from the Philpott project to the 
border of the Virginia Electric and Power Company System and the cost 
to the Government for transmission of power from the John H. Kerr 
Project to the border of the Duke Energy Progress System. These charges 
could be recovered through a capacity charge or an energy charge, as 
determined by the Government.
    Transmission and Ancillary Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving the Virginian Power or PJM's OATT.
    Transmission, System Control, Reactive, and Regulation Services:
    The charges for transmission and ancillary services shall be 
governed by and subject to refund based upon the determination in the 
proceeding involving Virginia Power's, DEP's, or PJM's OATT.
    Contract Demand:
    The contract demand is the amount of capacity in kilowatts stated 
in the contract which the Government is obligated to supply and the 
Customer is entitled to receive.
    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to 
Virginia Power (less applicable losses). The Customer's contract demand 
and accompanying energy will be allocated proportionately to its 
individual delivery points served from the Virginia Power's system. The 
applicable energy loss factor for transmission is specified in the 
OATT.
    These losses shall be effective until modified by the FERC, 
pursuant to application by the Company or PJM under Section 205 of the 
Federal Power Act or Southeastern Power Administration under Section 
206 of the Federal Power Act or otherwise.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

Wholesale Power Rate Schedule Replacement-2-B

    Availability:
    This rate schedule shall be available to public bodies and 
cooperatives (any one of whom is hereinafter called the Customer) in 
North Carolina and Virginia to whom power is provided pursuant to 
contracts between the Government and the customer from the John H. Kerr 
and Philpott Projects (or Kerr-Philpott System).
    Applicability:
    This rate schedule shall be applicable to the sale of wholesale 
energy purchased to meet contract minimum energy and sold under 
appropriate contracts between the Government and the Customer.
    Character of Service:
    The energy supplied hereunder will be delivered at the delivery 
points provided for under appropriate contracts between the Government 
and the Customer.
    Monthly Charge:
    The customer will pay its ratable share of Southeastern's monthly 
cost for replacement energy. The ratable share will be the cost 
allocation factor for the customer listed in the table below times 
Southeastern's monthly cost for replacement energy purchased for the 
Kerr-Philpott System, rounded to the nearest $0.01.

----------------------------------------------------------------------------------------------------------------
                                                                                                       Cost
      Contract No. 89-00-1501-                 Customer              Capacity     Average energy    allocation
                                                                    allocation                        factor
----------------------------------------------------------------------------------------------------------------
1230...............................  Albemarle EMC..............           2,593       6,950,707       1.565921%
1221...............................  B-A-R-C EC.................           3,740      10,060,472       2.266518%
853................................  Brunswick EMC..............           3,515      10,468,686       2.358485%
854................................  Carteret-Craven EMC........           2,679       7,978,836       1.797548%
869................................  Carteret-Craven EMC........              56          42,281       0.009525%
855................................  Central EMC................           1,239       3,690,100       0.831341%
1220...............................  Central Virginia EC........           7,956      21,534,960       4.851599%
1203...............................  City of Bedford............           1,200         906,166       0.204150%
1204...............................  City of Danville...........           5,600       4,228,775       0.952698%
895................................  City of Elizabeth City.....           2,073       1,565,205       0.352624%
1215...............................  City of Franklin...........           1,003         754,359       0.169949%
878................................  City of Kinston............           1,466       1,106,893       0.249371%
880................................  City of Laurinburg.........             415         313,343       0.070593%
881................................  City of Lumberton..........             895         675,764       0.152242%
1205...............................  City of Martinsville.......           1,600       1,208,222       0.272200%
882................................  City of New Bern...........           1,204         909,072       0.204804%
1206...............................  City of Radford............           1,300         981,575       0.221138%
885................................  City of Rocky Mount........           2,538       1,916,300       0.431722%
1208...............................  City of Salem..............           2,200       1,661,127       0.374234%
892................................  City of Washington.........           2,703       2,040,882       0.459789%
889................................  City of Wilson.............           2,950       2,227,377       0.501805%
1222...............................  Community EC...............           4,230      11,394,466       2.567053%
1211...............................  Craig-Botetourt EC.........           1,692       4,575,816       1.030883%
1231...............................  Edgecombe-Martin County EMC           4,155      11,275,547       2.540262%
875................................  Fayetteville Public Works             5,431       4,100,640       0.923831%
                                      Commission.
856................................  Four County EMC............           4,198      12,502,857       2.816762%
891................................  Greenville Utilities                  7,534       5,688,496       1.281558%
                                      Commission.
857................................  Halifax EMC................             585       1,742,299       0.392522%
1232...............................  Halifax EMC................           2,021       5,478,308       1.234205%
1216...............................  Harrisonburg Electric                 2,691       2,050,360       0.461924%
                                      Commission.
858................................  Jones-Onslow EMC...........           5,184      15,439,450       3.478345%
859................................  Lumbee River EMC...........           3,729      11,106,040       2.502074%

[[Page 57371]]

 
1223...............................  Mecklenburg EMC............          11,344      30,806,162       6.940303%
1224...............................  Northern Neck EC...........           3,944      10,572,278       2.381823%
1225...............................  Northern Virginia EC.......           3,268       8,875,341       1.999521%
860................................  Pee Dee EMC................           2,968       8,839,562       1.991460%
861................................  Piedmont EMC...............           1,086       3,234,540       0.728708%
862................................  Pitt & Greene EMC..........           1,580       4,705,697       1.060144%
1226...............................  Prince George EC...........           2,530       6,781,913       1.527893%
863................................  Randolph EMC...............           3,608      10,745,666       2.420885%
1227...............................  Rappahannock EC............          22,427      60,450,624      13.618889%
1233...............................  Roanoke EMC................           5,528      14,904,403       3.357805%
1228...............................  Shenandoah Valley EMC......           9,938      26,943,520       6.070091%
864................................  South River EMC............           6,119      18,224,150       4.105709%
1229...............................  Southside EC...............          14,575      39,381,017       8.872128%
865................................  Tideland EMC...............             680       2,025,236       0.456264%
1234...............................  Tideland EMC...............           2,418       6,554,050       1.476558%
870................................  Town of Apex...............             145         109,482       0.024665%
871................................  Town of Ayden..............             208         157,049       0.035381%
893................................  Town of Belhaven...........             182         137,418       0.030959%
872................................  Town of Benson.............             120          90,605       0.020412%
1212...............................  Town of Blackstone.........             389         292,568       0.065912%
873................................  Town of Clayton............             161         121,562       0.027387%
1213...............................  Town of Culpepper..........             391         297,916       0.067117%
894................................  Town of Edenton............             775         585,159       0.131830%
1214...............................  Town of Elkton.............             171         128,609       0.028974%
1218...............................  Town of Enfield............             259         194,810       0.043889%
874................................  Town of Farmville..........             237         178,946       0.040315%
876................................  Town of Fremont............              60          45,303       0.010206%
896................................  Town of Hamilton...........              40          30,202       0.006804%
897................................  Town of Hertford...........             203         153,274       0.034531%
898................................  Town of Hobgood............              46          34,732       0.007825%
877................................  Town of Hookerton..........              30          22,651       0.005103%
879................................  Town of La Grange..........              93          70,219       0.015820%
868................................  Town of Louisburg..........             857       2,552,452       0.575041%
883................................  Town of Pikeville..........              40          30,202       0.006804%
884................................  Town of Red Springs........             117          88,340       0.019902%
1207...............................  Town of Richlands..........             500         377,569       0.085062%
899................................  Town of Robersonville......             232         175,170       0.039464%
900................................  Town of Scotland Neck......             304         229,533       0.051711%
886................................  Town of Selma..............             183         138,173       0.031129%
887................................  Town of Smithfield.........             378         285,407       0.064299%
901................................  Town of Tarboro............           2,145       1,619,568       0.364872%
888................................  Town of Wake Forest........             149         112,501       0.025345%
1217...............................  Town of Wakefield..........             106          79,723       0.017961%
1219...............................  Town of Windsor............             331         248,946       0.056085%
866................................  Tri-County EMC.............           3,096       9,220,782       2.077345%
867................................  Wake EMC...................           2,164       6,445,017       1.451994%
                                    ----------------------------------------------------------------------------
    Total..........................  ...........................         196,500     443,873,428  ..............
----------------------------------------------------------------------------------------------------------------

    Energy to be Furnished by the Government:
    The Government will sell to the Customer and the Customer will 
purchase from the Government energy each billing month equivalent to a 
percentage specified by contract of the energy made available to the 
Facilitator (less any losses required by the Facilitator). The 
customer's contract demand and accompanying energy will be allocated 
proportionately to its individual delivery points served from the 
Facilitator's system.
    Billing Month:
    The billing month for power sold under this schedule shall end at 
12:00 midnight on the last day of each calendar month.

[FR Doc. 2015-24196 Filed 9-22-15; 8:45 am]
 BILLING CODE 6450-01-P