[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Notices]
[Pages 11556-11557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04876]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Valley Project, California-Oregon Transmission Project, 
Pacific Alternating Current Intertie, Third-Party Transmission Service; 
and Information on the Path 15 Transmission Upgrade-Rate Order No. 
WAPA-173

AGENCY:  Western Area Power Administration, DOE.

ACTION: Notice of Extension and Rate Order for Sierra Nevada Region's 
Power, Transmission, and Ancillary Services Formula Rates.

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SUMMARY: The Western Area Power Administration (Western) extends, on an 
interim basis, the existing Central Valley Project power, transmission, 
and ancillary services formula rates; California-Oregon Transmission 
Project transmission formula rate; Pacific Alternating Current Intertie 
transmission formula rate; and third-party transmission service formula 
rate. This action extends Rate Schedules CV-F13, CPP-2, CV-T3, CV-NWT5, 
COTP-T3, PACI-T3, CV-TPT7, CV-UUP1, CV-SPR4, CV-SUR4, CV-RFS4, CV-EID4, 
and CV-GID1 through September 30, 2019. The interim rates will be in 
effect until the Federal Energy Regulatory Commission (FERC) places the 
formula rates into effect on a final basis or until superseded.

DATES: This action is effective October 1, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Subhash Paluru, Regional Manager, 
Sierra Nevada Region, Western Area Power Administration, 114 Parkshore 
Drive, Folsom, CA 95630-4710, telephone (916) 353-4418, email 
[email protected]; or Ms. Regina Rieger, Rates Manager, Sierra Nevada 
Region, Western Area Power Administration, 114 Parkshore Drive, Folsom, 
CA 95630-4710, telephone (916) 353-4629, email [email protected].

SUPPLEMENTARY INFORMATION: On August 25, 2015, Western published a 
notice in the Federal Register \1\ in which Western proposed to extend, 
without adjustment, the existing Central Valley Project power, 
transmission, and ancillary services formula rates; California-Oregon 
Transmission Project transmission formula rate; Pacific Alternating 
Current Intertie transmission formula rate; and third-party 
transmission service formula rate. Western proposed to extend Rate 
Schedules CV-F13, CPP-2, CV-T3, CV-NWT5, COTP-T3, PACI-T3, CV-TPT7, CV-
UUP1, CV-SPR4, CV-SUR4, CV-RFS4, CV-EID4, and CV-GID1 through September 
30, 2019. As part of the notice, Western provided a 30-day comment 
period ending on September 24, 2015. Western received three comments, 
each in support of the three-year rate extension. Formula rates 
previously confirmed and approved by FERC, for which no adjustment is 
contemplated, may be extended by the Deputy Secretary on an interim 
basis, following notice of proposed extension at least 30 days before 
expiration.\2\
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    \1\ See 80 FR 51556 (August 25, 2015).
    \2\ See 10 CFR 903.23(a).
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    By Delegation Order No. 00-037.00A, effective October 25, 2013, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to Western's Administrator; (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to FERC. This extension is issued under the 
Delegation Order and DOE rate extension procedures at 10 CFR 903.23(a).
    FERC confirmed and approved Rate Order No. WAPA-156,\3\ Rate 
Schedules CV-F13, CPP-2, CV-T3, CV-NWT5, COTP-T3, PACI-T3, CV-TPT7, CV-
UUP1, CV-SPR4, CV-SUR4, CV-RFS4, CV-EID4, and CV-GID1, for five years. 
These formula rates expire on September 30, 2016. The rates and revenue 
requirements resulting from the approved formula rate methodologies are 
recalculated each year, based on updated financial and operational 
data. The existing formula rates provide sufficient revenue to repay 
all annual expenses, including interest expense, and to repay capital 
investments within the allowable periods, thus ensuring repayment 
within the cost recovery criteria set forth in DOE Order RA 6120.2.
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    \3\ See U. S. Dept. of Energy, Western Area Power Admin., Docket 
No. EF11-9-000, 137 FERC ] 62,201 (2011).
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    Upon consideration of Western's proposal and the comments received, 
I hereby approve, on an interim basis, Rate Order No. WAPA-173, which 
extends, without adjustment, the existing power, transmission, and 
ancillary service formula rates in the above Rate Schedules through

[[Page 11557]]

September 30, 2019. Rate Order No. WAPA-173 will be submitted to FERC 
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for confirmation and approval on a final basis.

    Dated: February 26, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY

Deputy Secretary

    In the Matter of: Western Area Power Administration Extension of 
Formula Rates for the Central Valley Project, California-Oregon 
Transmission Project, Pacific Alternating Current Intertie, and 
Third-Party Transmission Service; and Information on the Path 15 
Transmission Upgrade, Rate Order No. WAPA-173.

Order Confirming, Approving, And Placing The Central Valley Project, 
California-Oregon Transmission Project, Pacific Alternating Current 
Intertie, And Third-Party Transmission Service Formula Rates Into 
Effect On An Interim Basis

    These rates were established in accordance with section 302 of the 
Department of Energy (DOE) Organization Act (42 U.S.C. 7152). This Act 
transferred to and vested in the Secretary of Energy the power 
marketing functions of the Secretary of the Department of the Interior 
and the Bureau of Reclamation under the Reclamation Act of 1902 (Ch. 
1093, 32 Stat. 388), as amended and supplemented by subsequent laws, 
particularly section 9(c) of the Reclamation Project Act of 1939 (43 
U.S.C. 485h(c)), section 5 of the Flood Control Act of 1944 (16 U.S.C. 
825s), and other acts that specifically apply to the project involved.
    By Delegation Order No. 00-037.00A, effective October 25, 2013, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to the Administrator of the Western Area Power 
Administration (Western); (2) the authority to confirm, approve, and 
place such rates into effect on an interim basis to the Deputy 
Secretary of Energy; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand, or to disapprove such 
rates to the Federal Energy Regulatory Commission (FERC). This 
extension is issued pursuant to the Delegation Order and DOE rate 
extension procedures at 10 CFR 903.23(a).

Background

    On December 2, 2011, FERC confirmed and approved the existing 
formula rates, Rate Order No. WAPA-156,\1\ Rate Schedules CV-F13, CPP-
2, CV-T3, CV-NWT5, COTP-T3, PACI-T3, CV-TPT7, CV-UUP1, CV-SPR4, CV-
SUR4, CV-RFS4, CV-EID4, and CV-GID1. FERC approved the rates for five 
years through September 30, 2016. On August 25, 2015, Western published 
a notice in the Federal Register proposing to extend the existing 
formula Rate Schedules for three years, without adjustment.\2\ In 
accordance with 10 CFR 903.23(a), Western provided for a consultation 
and comment period that ended on September 24, 2015. Western received 
three comments, each in support of the three-year rate extension.
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    \1\ See U.S. Dept. of Energy, Western Area Power Admin., Docket 
No. EF11-9-000, 137 FERC ] 62,201 (2011).
    \2\ See 80 FR 51556 (August 25, 2015).
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Discussion

    The power, transmission, and ancillary service formula rates, Rate 
Schedules CV-F13, CPP-2, CV-T3, CV-NWT5, COTP-T3, PACI-T3, CV-TPT7, CV-
UUP1, CV-SPR4, CV-SUR4, CV-RFS4, CV-EID4, and CV-GID1, approved under 
Rate Order No. WAPA-156, expire on September 30, 2016. The existing 
formula rate methodologies are recalculated at least annually and 
provide adequate revenue to recover annual expenses, including interest 
expense, and repay capital investments within allowable time periods, 
thus ensuring repayment within the cost recovery criteria set forth in 
DOE Order RA 6120.2.
    Rate Order No. WAPA-173 extends, without adjustment, the existing 
formula Rate Schedules CV-F13, CPP-2, CV-T3, CV-NWT5, COTP-T3, PACI-T3, 
CV-TPT7, CV-UUP1, CV-SPR4, CV-SUR4, CV-RFS4, CV-EID4, and CV-GID1 
through September 30, 2019, thereby continuing to ensure project 
repayment within the cost recovery criteria.


Order

    In view of the above and under the authority delegated to me, I 
hereby extend, on an interim basis, the existing power, transmission, 
and ancillary services formula Rate Schedules CV-F13, CPP-2, CV-T3, CV-
NWT5, COTP-T3, PACI-T3, CV-TPT7, CV-UUP1, CV-SPR4, CV-SUR4, CV-RFS4, 
CV-EID4, and CV-GID1. Rate Order No. WAPA-173 extends, without 
adjustment, the existing formula rates through September 30, 2019. The 
formula rates shall be in effect on an interim basis, pending FERC's 
confirmation and approval of this extension or substitute rate on a 
final basis.

Dated: February 26, 2016.

Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

[FR Doc. 2016-04876 Filed 3-3-16; 8:45 am]
BILLING CODE 6450-01-P