[Federal Register Volume 81, Number 162 (Monday, August 22, 2016)]
[Notices]
[Pages 56632-56652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19973]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Rocky Mountain Region Transmission, Ancillary Services, 
Transmission Losses, and Sales of Surplus Products--Rate Order No. 
WAPA-174

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of order concerning transmission, ancillary services, 
transmission losses, and sales of surplus products formula rates.

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SUMMARY: The Deputy Secretary of Energy has confirmed and approved Rate 
Order No. WAPA-174 and Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-UU1, L-
AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-M1 placing 
Loveland Area Projects (LAP) transmission; Colorado River Storage 
Project (CRSP), LAP, and Western Area Colorado Missouri Balancing 
Authority (WACM) ancillary services; WACM transmission losses, and LAP 
sales of surplus products formula rates of the Western Area Power 
Administration (WAPA), Rocky Mountain Region (WAPA-RMR) into effect on 
an interim basis (Provisional Formula Rates). The Provisional Formula 
Rates will provide sufficient revenue to pay all annual costs, 
including interest expense, and to repay applicable investments within 
the allowable periods.

DATES: The Provisional Formula Rate Schedules L-NT1, L-FPT1, L-NFPT1, 
L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-M1 
are effective on the first day of the first full billing period 
beginning on or after October 1, 2016, and will remain in effect 
through September 30, 2021, pending approval by the Federal Energy 
Regulatory Commission (FERC) on a final basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Bradley S. Warren, Regional 
Manager, Rocky Mountain Region, Western Area Power Administration, 5555 
East Crossroads Boulevard, Loveland, CO 80538-8986, telephone (970) 
461-7201, or Mrs. Sheila D. Cook, Rates Manager, Rocky Mountain Region, 
Western Area Power Administration, 5555 East Crossroads Boulevard, 
Loveland, CO 80538-8986, telephone (970) 461-7211, email 
[email protected].

SUPPLEMENTARY INFORMATION: The Deputy Secretary of Energy approved 
WAPA-155, which provides the existing formula Rate Schedules L-NT1, L-
FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, 
L-AS9, on September 2, 2011 (76 FR 61184).\1\ Those formula rate 
schedules expire on September 30, 2016. WAPA-RMR published a Federal 
Register notice (Proposed FRN) on February 3, 2016 (81 FR 5744), 
proposing a change to the forward-looking transmission rate 
methodology; modifications to rate designs under Rate Schedules L-FPT1, 
L-AS2, and L-AS3; clarification of the language in all the existing 
rate schedules; and implementation of a new rate schedule for sales of 
surplus products, L-M1. The Proposed FRN also initiated a public 
consultation and comment period and set forth the date and location of 
the public information and public comment forums. WAPA-RMR held both 
forums in Loveland, Colorado, on March 28, 2016, where staff explained 
the proposed formula rates, answered questions, and provided the public 
with an opportunity to comment for the record.
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    \1\ FERC confirmed and approved WAPA-155 on a final basis on 
December 2, 2011, in Docket No. EF11-10-000. See United States 
Department of Energy, Western Area Power Administration, 137 FERC ] 
62,200.
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    WAPA-RMR modified the forward-looking transmission rate 
methodology; rate designs in Rate Schedules L-FPT1, L-AS2, and L-AS3; 
clarified language in all the existing rate schedules; and implemented 
a new formula rate schedule for sales of surplus products, Rate 
Schedule L-M1. The rate schedules contain formula-based charges which 
will be calculated annually to incorporate the most recent financial, 
load, and schedule information, as applicable.
    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 WAPA; (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. Federal rules (10 CFR part 903) govern 
Department of Energy procedures for public participation in power and 
transmission rate adjustments.
    Under Delegation Order Nos. 00-037.00A and 00-001.00F and in 
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm, 
approve, and place Rate Order No. WAPA-174, which provides the formula 
rates for LAP transmission; LAP, CRSP, and WACM ancillary services; 
WACM transmission losses; and LAP sales of surplus products, into 
effect on an interim basis. The new Rate Schedules L-NT1, L-FPT1, L-
NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, 
and L-M1 will be submitted promptly to FERC for confirmation and 
approval on a final basis.

    Dated: August 12, 2016.
Elizabeth Sherwood-Randall,
Deputy Secretary of Energy.

Department of Energy

Deputy Secretary

In the Matter of:

Western Area Power Administration, Rocky Mountain Region, Rate 
Adjustment for Transmission, Ancillary Services, Transmission, 
Losses, and Sales of Surplus Products,
Rate Order No. WAPA-174

Order Confirming, Approving, and Placing Transmission Service, 
Ancillary Services, Transmission Losses, and Sales of Surplus Products 
Formula Rates Into Effect on An Interim Basis

    The transmission, ancillary services, transmission losses, and 
sales of surplus products formula rates set forth in this order are 
established pursuant to 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 Interior and the Bureau of Reclamation 
(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 Act of 1939 (43 U.S.C. 485h(c)) and 
section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), and 
other acts that specifically apply to the projects 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 Western Area 
Power Administration; (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. Federal rules (10 
CFR part 903) govern DOE procedures for public participation in 
power rate adjustments.

[[Page 56633]]

Acronyms/Terms and Definitions

    As used in this Rate Order, the following acronyms/terms and 
definitions apply:

------------------------------------------------------------------------
           Acronym/term                          Definition
------------------------------------------------------------------------
$/kW-month........................  Dollars per kilowatt per month.
12-cp.............................  Rolling 12-month average of
                                     customers' loads in excess of
                                     applicable Federal Entitlement,
                                     coincident with the Loveland Area
                                     Projects transmission system peak.
AGC...............................  Automatic Generation Control.
Balancing Authority...............  The responsible entity that
                                     integrates resource plans ahead of
                                     time, maintains load-interchange-
                                     generation balance within a
                                     Balancing Authority area, and
                                     supports interconnection frequency
                                     in real time.
Business Practices................  Document that provides requirements
                                     for services and clarifies various
                                     aspects of the services offered.
Control Area......................  The term used for a Balancing
                                     Authority area in WAPA's Open
                                     Access Transmission Tariff.
Customer Brochure.................  Document that further explains the
                                     rate methodologies under Rate Order
                                     No. WAPA-174.
CRSP..............................  Colorado River Storage Project.
CRCM..............................  The CRSP Transmission Service
                                     Provider.
DOE...............................  United States Department of Energy.
Federal Customers.................  LAP or CRSP customers taking
                                     delivery of long-term firm service
                                     under firm electric service
                                     contracts, project use, and special
                                     use contracts.
Firm Electric Service Contracts...  Contracts for the sale of long-term
                                     firm LAP and CRSP Federal energy
                                     and capacity, pursuant to each
                                     Project's General Power Marketing
                                     and Allocation Criteria (Marketing
                                     Plan).
FERC..............................  Federal Energy Regulatory
                                     Commission.
Federal Entitlements..............  The energy and capacity delivered to
                                     Federal Customers under Firm
                                     Electric Service Contracts.
Fry-Ark...........................  Fryingpan-Arkansas Project.
FY................................  Fiscal Year, October 1 through
                                     September 30.
LAP...............................  Loveland Area Projects.
LAPT..............................  The LAP Transmission Service
                                     Provider.
M&I...............................  Municipal and Industrial.
Monthly Entitlements..............  Maximum capacity to be delivered
                                     each month under Firm Electric
                                     Service Contracts. Each monthly
                                     entitlement is a percentage of the
                                     seasonal contract-rate-of-delivery.
MW................................  Megawatt. The unit of electrical
                                     capacity equal to 1,000 kW or
                                     1,000,000 watts.
Open Access Same Time Information   An electronic posting system a
 System (OASIS).                     Transmission Service Provider
                                     maintains for transmission access
                                     data that allows all transmission
                                     customers to view the data
                                     simultaneously.
OATT..............................  WAPA's revised Open Access
                                     Transmission Service Tariff,
                                     effective April 12, 2013.
Provisional Formula Rate..........  A formula rate confirmed, approved,
                                     and placed into effect on an
                                     interim basis by the Deputy
                                     Secretary.
P-SMBP............................  Pick-Sloan Missouri Basin Program.
P-SMBP--WD........................  Pick-Sloan Missouri Basin Program--
                                     Western Division.
RMR...............................  Rocky Mountain Region.
Transmission Service Provider.....  An entity who administers a
                                     transmission tariff and provides
                                     transmission service to
                                     transmission customers under
                                     applicable transmission service
                                     agreements.
VAR...............................  Volt-Ampere Reactive related to
                                     Reactive Supply and Voltage
                                     Control.
VER...............................  Variable Energy Resource is one
                                     whose output is volatile and
                                     variable due to factors beyond
                                     direct operations control and,
                                     therefore, is not dispatchable.
WACM..............................  Western Area Colorado Missouri
                                     Balancing Authority.
WAPA..............................  Western Area Power Administration.
------------------------------------------------------------------------

Effective Date

    The Provisional Formula Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-
UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, L-AS9, and L-M1 
are effective on the first day of the first full billing period 
beginning on or after October 1, 2016, and will remain in effect 
through September 30, 2021, pending approval by FERC on a final basis 
or until superseded.

Public Notice and Comment

    WAPA-RMR has followed the Procedures for Public Participation in 
Power and Transmission Rate Adjustments and Extensions, 10 CFR part 
903, in the development of these formula rates and schedules. The steps 
WAPA-RMR took to involve interested parties in the rate process were:
    1. On August 10, 2015, WAPA-RMR held an informal customer meeting 
to discuss changes, updates, and additions WAPA-RMR was considering 
recommending for LAP transmission; CRSP, LAP, and WACM ancillary 
services; WACM transmission losses; and LAP sales of surplus products. 
The meeting was announced through email notification to all customers, 
as well as posting on WAPA-RMR's Web site for all interested parties. 
WAPA-RMR posted all information presented at the informal customer 
meeting, as well as responses to questions asked at the meeting, on its 
Web site at http://www.wapa.gov/regions/RM/rates/Pages/2017-rate-adjustment.aspx.
    2. WAPA-RMR published a Federal Register notice on February 3, 2016 
(81 FR 5744) (Proposed FRN), announcing the proposed transmission, 
ancillary services, transmission losses, and sales of surplus products 
formula rates adjustment, initiating the public consultation and 
comment period, announcing the date and location of the public 
information and public comment forums, and outlining procedures for 
public participation.
    3. On February 3, 2016, WAPA-RMR sent a letter to customers and 
interested parties providing them with a copy of the Proposed FRN.
    4. On March 28, 2016, WAPA-RMR held a public information forum in 
Loveland, Colorado, where WAPA-RMR representatives explained the need 
for the formula rates adjustment in detail and answered questions.
    5. On March 28, 2016, following the public information forum, WAPA-
RMR held a public comment forum in Loveland, Colorado, to provide an 
opportunity for customers and other interested parties to comment for 
the

[[Page 56634]]

record. At this forum, one individual presented nine comments. Those 
comments and WAPA-RMR's responses are addressed below.
    6. WAPA-RMR received one written comment letter during the 90-day 
consultation and comment period, which ended on May 3, 2016. The letter 
contained several comments, many of which were also presented during 
the comment forum. The comments and WAPA-RMR's responses are addressed 
below.
    All comments received have been considered in the preparation of 
this Rate Order.

Project Descriptions

    The Post-1989 General Power Marketing and Allocation Criteria, 
published in the Federal Register on January 31, 1986 (51 FR 4012), 
integrated the resources of the P-SMBP--WD and Fry-Ark. This 
operational and contractual integration, known as LAP, allowed an 
increase in marketable resources, simplified contract administration, 
and established a blended rate for LAP power sales. WAPA-RMR offers 
ancillary services from a combination of LAP generation resources and 
CRSP generation resources.

P-SMBP--WD

    The P-SMBP was authorized by Congress in section 9 of the Flood 
Control Act of December 22, 1944 (Pub. L. 534, 58 Stat. 877, 891). This 
multipurpose program provides flood control, M&I water supply, 
irrigation, navigation, recreation, preservation and enhancement of 
fish and wildlife, and hydroelectric power. Multipurpose projects have 
been developed on the Missouri River and its tributaries in Colorado, 
Montana, Nebraska, North Dakota, South Dakota, and Wyoming.
    In addition to the multipurpose water projects authorized by 
section 9 of the Flood Control Act of 1944, certain other existing 
projects have been integrated with the P-SMBP for power marketing, 
operation, and repayment purposes. The Colorado-Big Thompson, Kendrick, 
Riverton, and Shoshone Projects were combined with P-SMBP in 1954, 
followed by the North Platte Project in 1959. These projects are known 
as the ``Integrated Projects'' of the P-SMBP. The Riverton Project was 
reauthorized as a unit of the P-SMBP in 1970. Together, the P-SMBP--WD 
and the Integrated Projects have 19 power plants.
    There are six power plants in P-SMBP--WD: Glendo, Kortes, and 
Fremont Canyon power plants on the North Platte River; Boysen and Pilot 
Butte power plants on the Wind River; and Yellowtail power plant on the 
Big Horn River. The Colorado-Big Thompson Project has six power plants: 
Green Mountain power plant on the Blue River is on the Western Slope of 
the Continental Divide; and Mary's Lake, Estes, Pole Hill, Flatiron, 
and Big Thompson power plants along the Big Thompson River are on the 
Eastern Slope of the Continental Divide. The Kendrick Project has two 
power plants: Alcova and Seminoe power plants on the North Platte 
River. Power plants in the Shoshone Project are the Shoshone, Buffalo 
Bill, Heart Mountain, and Spirit Mountain plants on the Shoshone River. 
The only power plant in the North Platte Project is the Guernsey power 
plant, also on the North Platte River.

Fry-Ark

    Fry-Ark is a trans-mountain diversion development in southeastern 
Colorado authorized by the Act of Congress on August 16, 1962 (Pub. L. 
87-590, 76 Stat. 389, as amended by Title XI of the Act of Congress on 
October 27, 1974 (Pub. L. 93-493, 88 Stat. 1486, 1497)). The Fry-Ark 
diverts water from the Fryingpan River and other tributaries of the 
Roaring Fork River in the Colorado River Basin on the Western Slope of 
the Rocky Mountains to the Arkansas River on the Eastern Slope of the 
Rocky Mountains. The water diverted from the Western Slope, together 
with regulated Arkansas River water, provides supplemental irrigation 
and M&I water supplies and produces hydroelectric power. Flood control, 
fish and wildlife enhancement, and recreation are other important 
purposes of Fry-Ark. The only generating facility in Fry-Ark is the Mt. 
Elbert Pumped-Storage power plant on the Eastern Slope.

CRSP

    CRSP was authorized by the Colorado River Storage Project Act, ch. 
203, 70 Stat. 105, (43 U.S.C. 620) on April 11, 1956. The project 
provides water-use developments for states in the Upper Basin 
(Colorado, New Mexico, Utah, and Wyoming) while still maintaining water 
deliveries to the states of the Lower Basin (Arizona, California, and 
Nevada) as required by the Colorado River Compact of 1922. Generation 
from CRSP and its participating projects, Dolores and Seedskadee, and 
from the Collbran and Rio Grande Projects have been marketed as the 
Salt Lake City Area/Integrated projects (SLCA/IP) since October 1, 
1987. The CRSP Project has five plants: Blue Mesa, Crystal, and Morrow 
Point on the Gunnison River, Flaming Gorge located on the Green River, 
and Glen Canyon located on the Colorado River; Dolores Project has two 
plants: Towaoc located on the Towaoc Canal and McPhee located on the 
Dolores River; Seedskadee Project has one plant: Fontenelle located on 
the Green River; Collbran Project has two plants: Upper and Lower 
Molina located on the Cottonwood and Plateau Creeks respectively; and 
the Rio Grande Project has one plant: Elephant Butte located on the Rio 
Grande River.

Transmission, Ancillary Services, Transmission Losses, and Sales of 
Surplus Products

    WAPA-RMR is implementing revised formula rates for transmission, 
ancillary services, and transmission losses under Rate Schedules L-NT1, 
L-FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-
AS7, and L-AS9 and a new formula rate for sales of surplus products 
under Rate Schedule L-M1. The formula rates are each designed to 
recover the annual costs of providing the services, as applicable.

Existing and Provisional Formula Rates

    The existing formula rates contained in Rate Schedules L-NT1, L-
FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, 
and L-AS9 expire on September 30, 2016. Several of these rate schedules 
contain formula rates that were calculated each year to include the 
most recent financial, load, and schedule information, as applicable. 
The new rate schedules continue with this approach. The charges under 
the applicable formula rates are calculated annually in early summer; 
therefore, WAPA-RMR was unable to provide the specific charges for FY 
2017 during the rate process and in this Rate Order. Once calculated, 
the FY 2017 charges will be posted to WAPA's Web sites at http://www.wapa.gov/regions/RM/rates/Pages/Transmission-ancillary.aspx and 
https://www.wapa.gov/regions/CRSP/rates/Pages/Tariffs.aspx.

Certification of Rates

    WAPA's Administrator certified the Provisional Formula Rates for 
LAP Transmission; CRSP, LAP and WACM Ancillary Services; WACM 
Transmission Losses; and LAP Sales of Surplus Products under Rate 
Schedules L-NT1, L-FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-
AS5, L-AS6, L-AS7, L-AS9, and L-M1 are the lowest possible rates 
consistent with sound business principles. The Provisional Formula 
Rates were developed following administrative policies and applicable 
laws.

[[Page 56635]]

LAP Transmission Service Discussion

    In accordance with WAPA's OATT, LAPT offers Network Integration 
Transmission Service (Network Service) and Firm and Non-Firm Point-to-
Point Transmission Services. These services include the transmission of 
energy to points of delivery on the LAP interconnected high-voltage 
system, which is comprised of transmission lines, substations, and 
related facilities. Transmission service for the LAP Federal Customers 
is bundled in the LAP Firm Electric Service (FES) rate.
    The methodology used for formula rate development and the 
implementation process are described below.

Annual Transmission Revenue Requirement

    WAPA-RMR is not changing the calculation of the annual transmission 
revenue requirement (ATRR), which is applicable to both Network and 
Point-to-Point transmission services. The calculation for the ATRR is:
[GRAPHIC] [TIFF OMITTED] TN22AU16.016

    The annual transmission cost is the ratio of gross investment cost 
for transmission facilities to gross investment cost for all facilities 
multiplied by the applicable total annual costs, which include 
operations and maintenance, interest, and depreciation expenses. The 
calculation is:
[GRAPHIC] [TIFF OMITTED] TN22AU16.017

    The gross investment cost for transmission facilities will be 
determined by an analysis of the LAP Transmission System. Each LAP 
facility is classified by function: Transmission, sub-transmission, or 
generation-related. The facilities identified as performing the 
function of transmission include transmission lines normally operated 
in a continuously-looped manner and the associated substations and 
switchyard facilities. In the LAP Transmission System, these are 
primarily the 115-kV and above facilities. In addition, a portion of 
the communication and maintenance facilities is included in the 
investment cost for transmission. Only the investment costs of the 
facilities identified as ``transmission,'' including allocated costs 
for communication and maintenance facilities, are used in developing 
the annual transmission cost. The investment costs of facilities 
identified as ``sub-transmission'' are excluded from the ATRR, as the 
LAP sub-transmission system is used primarily for delivery of Federal 
Entitlements to Federal Customers. If a transmission customer, who does 
not have an FES agreement with LAP, requires the use of the sub-
transmission system, an additional facility-use charge will be 
assessed. Fry-Ark facilities are considered generation-related and, 
therefore, are excluded from the ATRR.
    The transmission expenses for increasing transmission system 
capacity will continue to include payments made to others for their 
systems' augmentation of the LAP Transmission System. Miscellaneous 
charges and credits will include, but not be limited to, Unreserved Use 
and facility charges for transmission facility investments included in 
the revenue requirement. Since the LAP transmission rates include LAP's 
Scheduling, System Control, and Dispatch Service (SSCD Service) costs, 
the revenue collected by WACM for providing this service is included as 
a credit to the ATRR, as shown above.

Forward-Looking Transmission Rate

    Effective October 2011, WAPA-RMR used a forward-looking 
transmission rate methodology to calculate the ATRR to recover 
transmission expenses and investments on a current basis rather than a 
historical basis. As part of this methodology, WAPA-RMR projected 
transmission costs two years into the future, relying on current year 
actuals for approximately the first eight months of the year and 
projecting the remaining four months of the year plus twelve additional 
months. Western has determined, however, estimating the additional 
twelve months introduced unnecessarily large true-ups. As a result, 
starting in October 2016, WAPA-RMR is removing the additional twelve 
months from the projection, thus only having to true-up the projected 
costs for the four-month period of the current year. This method will 
allow WAPA-RMR to more accurately match cost recovery with cost 
incurrence. This method will be a change in the manner in which the 
inputs for the charge are developed, rather than a change to the 
formula rate itself.
    When actual cost information for a year becomes available, WAPA-RMR 
will continue to calculate the actual revenue requirement. Revenue 
collected in excess of WAPA-RMR's actual revenue requirement will be 
included as a credit in the ATRR in the following year. Similarly, any 
under-collection of the revenue requirement will be recovered in the 
following year. This true-up procedure ensures WAPA-RMR recovers no 
more or no less than the actual transmission costs for the year. For 
example, as the remaining four months of FY 2016 actual financial data 
becomes available during FY 2017, the under-collection or over-
collection of revenue for FY 2016 can be determined. When the FY 2018 
charge is calculated, it will include an adjustment for revenue under-
collection or over-collected in FY 2016.
    Annual operation and maintenance expenses are projected using 
budgeted amounts. Depreciation and interest expenses are projected 
using historical amounts modified to account for projected additions to 
plant in-service in the current year. Plant in-service expenses are 
projected using historical amounts plus an estimate for projects 
anticipated to be booked to plant in the current year and by removing 
current year retirements.

Network Integration Transmission Service

    WAPA-RMR has made no changes to the Network Service formula rate, 
under Rate Schedule L-NT1. The monthly charge for Network Service will

[[Page 56636]]

continue to be the product of one-twelfth of the ATRR times the 
transmission customer's load-ratio share.
    The Provisional Formula Rate is as follows:
    [GRAPHIC] [TIFF OMITTED] TN22AU16.018
    
    The customer's load-ratio share is the ratio of its Network Service 
load to the LAP Transmission System total load at the LAP system peak. 
This is calculated on a rolling 12-month basis (12 coincident peak 
average or 12-cp).

Firm Point-to-Point Transmission Service

    The formula rate for Firm Point-to-Point Transmission service, 
under Rate Schedule L-FPT1, has been modified in order to clarify the 
denominator includes the reserved capacity for Firm Point-to-Point 
Transmission Service, plus a 12-month average capacity value for 
Network Service (including Federal Entitlements) rather than stating it 
includes the ``LAP Transmission System total load.''
    The Provisional Formula Rate is as follows:
    [GRAPHIC] [TIFF OMITTED] TN22AU16.019
    
    Just like the ATRR, the capacity used in this formula is determined 
once annually and is used to calculate the Firm Point-to-Point 
Transmission Service charges for the entire year.

Non-Firm Point-to-Point Transmission Service

    WAPA-RMR has made no changes to the Non-Firm Point-to-Point 
Transmission Service formula rate, under Rate Schedule L-NFPT1. It will 
continue to equal the Firm Point-to-Point Transmission Service formula 
rate. The charge for Non-Firm Point-to-Point Transmission Service may 
be discounted based on market conditions, but will never be higher than 
the Firm Point-to-Point Transmission Service charge.
    The Provisional Formula Rate for Non-Firm Point-to-Point 
Transmission Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.020

Penalty Rate for Unreserved Use of Transmission Service (Unreserved 
Use)

    WAPA-RMR has made no changes to the Unreserved Use Penalties rate, 
under Rate Schedule L-UU1. LAP will continue to assess Unreserved Use 
penalties against a transmission customer who has not secured reserved 
capacity or exceeds their reserved capacity at any point of receipt or 
any point of delivery. Unreserved Use may also include a transmission 
customer's failure to curtail transmission when requested.
    LAP transmission customers who engage in Unreserved Use are 
assessed a penalty charge of 200% of LAP's approved transmission 
service charge for Firm Point-to-Point Transmission Service, as well 
as, any related ancillary services as follows: The Unreserved Use 
penalty for a single hour of Unreserved Use will be based upon the 
charge for daily Firm Point-to-Point Transmission Service. The 
Unreserved Use penalty for more than one assessment for a given 
duration (e.g., daily) will increase to the next longest duration 
(e.g., weekly). The Unreserved Use penalty charge for multiple 
instances of Unreserved Use (e.g., more than one hour) within a day 
will be based on the charge for daily Firm Point-to-Point Transmission 
Service. Multiple instances of Unreserved Use isolated to one calendar 
week will result in a penalty based on the charge for weekly Firm 
Point-to-Point Transmission Service. The penalty charge for multiple 
instances of Unreserved Use during more than one week during a calendar 
month will be based on the charge for monthly Firm Point-to-Point 
Transmission Service.

Ancillary Services Discussion

    In accordance with WAPA's OATT, ancillary services are needed with 
transmission service to maintain reliability inside and among the 
Control Areas affected by the transmission service. CRCM and LAPT 
currently provide seven ancillary services under the OATT: Scheduling, 
System Control & Dispatch Service (SSCD Service); Reactive Supply & 
Voltage Control Support Service (VAR Support Service); Regulation and 
Frequency Response Service (Regulation Service); Energy and Generator 
Imbalance Services; and Operating Reserves--Spinning Reserve and 
Supplemental Reserve Services. The Provisional Formula Rates for these 
services are designed to recover the costs incurred for providing each 
of the services. The Provisional Formula Rates are also applicable to 
WACM when, as the Control Area operator, WACM provides services as 
required or as requested by Transmission Service Providers and Load 
Serving Entities.
    The first two of these seven ancillary services, SSCD Service and 
VAR Support Service, are services the Transmission Service Provider is 
required to provide, or offer to arrange with the Control Area 
operator, and the transmission customer is required to purchase.
    The other five ancillary services, Regulation Service, Energy and 
Generator Imbalance Services, and

[[Page 56637]]

Operating Reserves--Spinning Reserve and Supplemental Reserve Services, 
are services the Transmission Service Provider must offer when 
transmission service is used to serve load within the Transmission 
Service Provider's Control Area. The transmission customer must 
purchase these ancillary services from the Transmission Service 
Provider, acquire the services from a third party, or self-supply the 
services.

Scheduling, System Control, and Dispatch Service

    WAPA-RMR has made no changes to the formula rate for SSCD Service, 
under Rate Schedule L-AS1. The Provisional Formula Rate for SSCD 
Service is as follows:
[GRAPHIC] [TIFF OMITTED] TN22AU16.021

    The annual cost of scheduling personnel and related costs includes 
annual costs associated with transmission scheduling (i.e., personnel, 
facilities, equipment and software, as well as credits representing 
fees for agent services).
    The number of schedules per year is the yearly total of daily tags 
which result in a schedule, excluding loss schedules.
    WAPA-RMR allocates the charge of each schedule equally among all 
Transmission Service Providers, both Federal and non-Federal, listed on 
the schedule who are inside WACM. The Federal transmission segments are 
exempt from invoicing, as costs for these segments continue to be 
included in the Federal (LAP and CRSP) Transmission Service rates.

Reactive Supply and Voltage Control Service From Generation or Other 
Sources Service

    The formula rate for VAR Support Service, under Rate Schedule L-
AS2, has been modified. The numerator has been changed to include not 
only LAP and CRSP's revenue requirements for Federal generation, but 
also the annual cost of other resources used to provide VAR Support 
Service and any applicable revenue credits related to WACM providing 
service. The wording of the denominator has been changed in order to 
clarify the denominator includes all ``transmission transactions'' 
requiring VAR Support Service rather than stating it includes ``load in 
WACM'' requiring VAR Support Service.
    The Provisional Formula Rate for VAR Support Service is as follows:
    [GRAPHIC] [TIFF OMITTED] TN22AU16.022
    
    The annual revenue requirement for VAR Support Service equals 
revenue requirement for generation x % of resource capacity used for 
VAR Support Service (1 minus power factor) plus other resources, e.g., 
energy and transmission costs for condensing Federal generating units 
minus applicable revenue credits related to WACM providing service.
    The transmission transactions requiring VAR Support Service equals 
the transmission capacity use of the Federal transmission systems; 
including Point-to-Point and Network Transmission Services on LAP and 
CRSP transmission systems.
    The unit charge is applicable to all LAP and CRSP transmission 
transactions in excess of any Federal Entitlements and to any non-
Federal Transmission Service Providers for which WACM provides service. 
WACM will charge based on the rate applicable under L-AS2 and any 
resulting revenue will be treated as a revenue credit within the L-AS2 
rate design. Federal Entitlements pay the same unit charge for this 
service, but the charge remains bundled in the LAP and CRSP FES rates.
    WAPA-RMR is eliminating previously granted LAP and CRSP 
transmission service VAR Support Service charge exemptions, unless the 
Federal transmission customer has generating resources capable of 
providing VARs directly connected to a Federal transmission facility 
owned and operated by CRSP and/or LAP and has executed a contract 
stipulating all the provisions of their self-supply. Including the 
previously exempted capacity in the VAR Support Service denominator 
puts downward pressure on the VAR Support Service rate, which will 
benefit the Federal transmission customers who are currently paying a 
higher rate. Customers who have previously received an exemption will 
now pay for VAR Support Service, but their rate will be significantly 
lower than those who have paid for the service to date.

Regulation and Frequency Response Service

    The formula rate for Regulation Service, under Rate Schedule L-AS3, 
has been modified so the denominator includes wind and solar capacity 
multipliers that will be applied to the installed nameplate capacity 
value of wind and solar generators. The basis for application of the 
multiplier is the growth WACM has seen in VERs, requiring WAPA-RMR to 
purchase additional regulation and frequency response services. WAPA-
RMR developed a ``Regulation Analysis'' tool that allows WAPA-RMR to 
see the hourly impacts of both load and traditional generation and VERs 
on WACM and determine the amount of regulation and following resource 
consumption. For the period of July 2014-June 2015, the tool indicated 
that wind VERs required 225% more regulation and frequency response 
services than load and traditional generation require. WACM does not 
have a significant amount of solar generation impacting its Balancing

[[Page 56638]]

Authority area and, therefore, does not have sufficient solar 
generation data available to perform a thorough analysis at this time. 
Therefore, WAPA-RMR will identify a solar capacity multiplier of 100% 
until such a time a different value is warranted, i.e., if and when 
solar VERs become more prevalent in the WACM footprint.
    The Provisional Formula Rate for Regulation Service is as follows:
    [GRAPHIC] [TIFF OMITTED] TN22AU16.023
    
    The total annual revenue requirement for Regulation Service 
includes such costs as LAP and CRSP plant costs, purchases of 
regulation products, purchases of power in support of the generating 
units' ability to regulate, purchases of transmission for regulating 
units who are trapped geographically inside another Balancing Authority 
area, purchases of transmission required to relocate energy due to 
regulation/load following issues, and lost on-peak sales opportunities 
resulting from the requirement to generate at night to permit units to 
have `down' regulating capability.
    The total load for Regulation Service equals load inside WACM 
requiring Regulation Service, plus the installed nameplate capacity of 
wind generators serving load inside WACM times the wind capacity 
multiplier, plus the installed nameplate capacity of solar generators 
serving load inside WACM times the solar capacity multiplier. The 
capacity multipliers will be updated yearly to coincide with the normal 
annual formula rate updates (each October 1).
    The capacity required for regulation is subject to re-evaluation 
every year. Historically, the regulation requirement from Federal 
generators had been 75 MW (55 MW from LAP and 20 MW from CRSP). 
Starting in the FY 2014 rate design, following the CRSP transmission 
system being reconfigured into WACM, WAPA-RMR and WAPA-CRSP agreed to 
assign the regulation requirement to LAP and CRSP based on a ratio of 
LAP, CRSP, and WACM individual contract requirements to the total of 
all requirements. Using this ratio share methodology, to annually 
update the ratio shares, allows LAP and CRSP to each supply resources 
sufficient to cover their own requirement (FES and transmission sales), 
plus a portion of WACM's requirement (Balancing Authority agreements), 
with LAP being capped at 55 MW and CRSP being capped at 40 MW--the 
historical commitment from each Project. In addition, WAPA-RMR made 
changes within the rate design to assign only the proper share of each 
Project's plant costs, and any applicable purchases and transmission 
costs, to the LAP and CRSP Federal Entitlements. This change ensures 
the Federal Entitlements are not being improperly assigned costs 
related to WAPA-RMR's purchase of additional regulation and frequency 
response services needed for VERs or increased sales of transmission 
service. The methodology for determining annual plant costs is 
unchanged. First, the annual costs for Federal plants used to regulate 
is calculated by multiplying the net plant costs by the annual fixed 
charge rate for generation. Then, the annual cost per unit of capacity 
for regulating plants is calculated by dividing the annual costs for 
regulating plants by the capacity of those plants. Next, the portion of 
the total annual plant costs to be recovered in the Regulation Service 
rate is calculated by multiplying the annual unit cost by the amount of 
capacity required for regulation from those Federal plants.
    The analysis to determine the capacity multipliers will be 
completed on a monthly basis for WAPA-RMR to determine a 12-month 
average. WAPA-RMR will use the most current analysis data available, 
typically July of the prior year to June of the current year, for the 
annual formula rate updates. The capacity multipliers will be posted to 
the Web sites along with the annual charges.
    The formula rate for Regulation Service has two different 
applications:
    1. Load-based Assessment: The charge is assessed on an entity's 
auxiliary load (total metered load less applicable Federal 
Entitlements) and on the amount stated in any Balancing Authority or 
other transmission service agreements. The charge is also applied to 
the installed nameplate capacity of all VER, including wind and solar 
generators, serving load inside the WACM Control Area, multiplied by 
the applicable annually-calculated capacity multiplier.
    2. Self-provision Assessment: WAPA-RMR allows entities with AGC to 
self-provide for all or a portion of their loads. Entities with AGC are 
known as sub-Balancing Authorities and must meet various criteria, as 
listed in the rate schedule.
    WACM does not regulate for the difference between the output of a 
variable generator located inside the WACM Control Area and a delivery 
schedule from a generator serving load located outside the WACM Control 
Area. In addition, WACM may allow entities to self- or third-party 
supply their regulation requirement. As such, Rate Schedule L-AS3 will 
continue to include the following ``alternative arrangements'':
Exporting Variable Generator Requirement
    WACM does not provide Regulation Service to variable resources 
inside the WACM Control Area which are not used to serve load inside 
the WACM Control Area. An entity that exports the output from a 
variable generator to another Balancing Authority will be required to 
dynamically meter or dynamically schedule that resource out of WACM to

[[Page 56639]]

another Balancing Authority unless arrangements, satisfactory to WACM, 
are made for that entity to acquire this service from a third party or 
self-supply (as outlined below).
Self- or Third-Party Supply
    WACM may allow an entity to supply some or all of its required 
regulation, or contract with a third party to do so. This entity must 
have revenue quality metering at every load and generation point, 
accurate as defined by North American Electric Reliability Corporation 
(NERC), to include MW flow data availability at 6-second (or smaller) 
intervals. WACM will evaluate the entity's metering, 
telecommunications, and regulating resource, as well as the required 
level of regulation, and determine whether the entity qualifies to 
self-supply under this provision. If approved, the entity is required 
to enter into a separate contract with WACM which will specify the 
terms of the self-supply agreement.

Imbalance Services

    WAPA-RMR has made no changes to the Energy Imbalance Service or 
Generator Imbalance Service formula rates, under Rate Schedules L-AS4 
and L-AS9.
Energy Imbalance
    WAPA-RMR calculates energy imbalances and assesses penalties based 
on a three deviation band structure as follows:
    1. An imbalance of less than or equal to 1.5 percent of metered 
load (or 4 MW, whichever is greater) for any hour is settled 
financially at 100 percent of the WACM weighted average hourly energy 
price for that hour.
    2. An imbalance between 1.5 percent and 7.5 percent of metered load 
(or 4 to 10 MW, whichever is greater) for any hour is settled 
financially at 90 percent of the WACM weighted average hourly energy 
price when net energy scheduled exceeds metered load or 110 percent of 
the WACM weighted average hourly energy price when net energy scheduled 
is less than metered load.
    3. An imbalance greater than 7.5 percent of metered load (or 10 MW, 
whichever is greater) for any hour is settled financially at 75 percent 
of the WACM weighted average hourly energy price when net energy 
scheduled exceeds metered load or 125 percent of the WACM weighted 
average hourly energy price when net energy scheduled is less than 
metered load.
    The term ``metered load'' is defined to be ``metered load adjusted 
for losses.'' Also, each hour stands on its own; there is no monthly 
netting. Hourly accounting encourages the customer to more closely 
follow its load.
Generator Imbalance
    Generator Imbalance Service applies to all:
    1. Jointly-owned generators (unless arrangements are made to 
allocate actual generation to each individual owner),
    2. Variable generators (unless arrangements are made to assess the 
variable generator under Rate Schedule L-AS4), and
    3. Non-variable generators serving load outside the WACM Control 
Area.
    An entity's solely-owned non-variable generator inside the WACM 
Control Area will be included in the entity's Energy Imbalance Service 
calculation.
    The formula rate and pricing for Generator Imbalance Service will 
be identical to the formula rate for Energy Imbalance Service, with the 
following exceptions:
    1. Bandwidths will be calculated as a percentage of metered 
generation, since there is no load.
    2. Variable generators will be exempt from the outer bandwidth. All 
imbalances greater than 1.5 percent of metered generation are subject 
only to a 10 percent penalty.
Penalty Elimination
    In any hour, WAPA-RMR may charge a customer a penalty for either 
Generator Imbalance Service or Energy Imbalance Service, but not both.
Minimum Bandwidth
    WAPA-RMR has concluded that strict imposition of FERC Order 890 
parameters for minimum bandwidth (2 MW) is unnecessarily restrictive to 
small customers. LAP's Federal Entitlement may be the only resource a 
small customer has available for following load and staying within 
prescribed bandwidths. WAPA-RMR requires customers to schedule their 
Federal Entitlements 48-hours in advance, which is unique in the 
industry. With weekends and holidays, this schedule may have to be 
submitted several days in advance. This situation is exacerbated by the 
requirement scheduling be done in whole MWs, while loads (and 
imbalance) are measured to the kilowatt. Due to these circumstances, 
WAPA-RMR will not start assessing penalties after a 2 MW deviation and 
will continue to employ a 4 MW minimum bandwidth. No costs are being 
passed to customers with larger loads due to the larger minimum 
bandwidth. WAPA-RMR has employed this practice, with FERC approval, 
since March 2004.\1\
---------------------------------------------------------------------------

    \1\ FERC's initial confirmation and approval was in Docket No. 
EF04-5182-000. See United States Department of Energy, Western Area 
Power Administration, 110 FERC ] 62,084 (January 31 2005).
---------------------------------------------------------------------------

Settlement and Pricing
    All imbalances will be settled financially using WACM pricing for 
each hour. The imbalance for each applicable entity shall be totaled 
and netted to determine WACM's aggregate energy condition. The sign of 
the aggregate energy condition for WACM will determine whether sale or 
purchase pricing will be used in all bandwidths (surplus hours will use 
sale pricing, and deficit hours will use purchase pricing).
Expansion of the Bandwidth
    Expansion of the bandwidth may be allowed during the following 
instances: 1) response to the loss of a physical resource and 2) during 
transition of large base-load thermal resources (capacity greater than 
200 MW) between off-line and on-line following a reserve sharing group 
response, when the unit generates less than the predetermined minimum 
scheduling level. Details are as follows:
    1. WAPA-RMR will expand the bandwidth during an event established 
by a WAPA-recognized reserve-sharing group, such as the Rocky Mountain 
Reserve Group. A response made by a member of the reserve group will be 
accounted for by an after-the-fact schedule. Normally, these events are 
1-2 hours in duration. Since such events are accounted for by after-
the-fact schedules, no expansion will be necessary for the entity 
receiving the response. The expanded bandwidth will apply to the 
customer who increased generation in response to the event and will be 
based on the magnitude of that customer's generation response.
    2. During transition of large base-load thermal resources (capacity 
greater than 200 MW) between off-line and on-line following a reserve 
sharing group response, WAPA-RMR may expand the bandwidth (eliminate 
all penalties) during hours in which the unit generates less than the 
predetermined minimum scheduling level. WAPA-RMR may not have access to 
information necessary to determine these hours for some generators and 
will not have access to information on events for reserve sharing 
groups outside WACM. Customers should request bandwidth expansion in 
hours in which they believe it to be warranted. WAPA-RMR may request 
additional information for its decision whether to

[[Page 56640]]

grant the request. Bandwidth will not be expanded when the customer's 
ramping services have been acquired by another entity.
Balancing Authority Operating Constraints
    WAPA-RMR reserves the right to offer no credit for Imbalance 
Service over-deliveries during times of WACM operating constraints, 
such as ``must-run'' hydrologic conditions, or times when WACM cannot 
dispose of surplus energy. Due to the unpredictable nature of hour-to-
hour energy imbalances and the very short notice for disposition of 
over deliveries, WACM may experience some hours of zero value sales and 
may eliminate credits in these hours.
    If WACM is unable to dispose of the entire net over-delivery and 
the operating criteria for the balancing authority are not met, 
reliability oversight agencies, such as the NERC or the Western 
Electricity Coordinating Council may charge WACM with violating 
applicable standards. In these cases, WAPA-RMR reserves the right to 
eliminate credit to customers and require customers to share in any 
costs incurred as a result of such violations. Also, there may be 
conditions under which customers who under-deliver may share in any 
costs incurred by WAPA-RMR as a result of violations asserted by 
reliability oversight agencies.

Operating Reserves--Spinning and Supplemental Reserve Services

    WAPA-RMR has made no changes to the Operating Reserve Services 
formula rates, under Rate Schedules L-AS5 and L-AS6. LAPT and WACM have 
no Reserves available for sale. At a customer's request, WAPA-RMR will 
purchase and pass-through the cost of Operating Reserves, plus the cost 
of any activation energy, plus a fee for administration. The customer 
will be responsible for providing the transmission to deliver the 
Operating Reserves purchased.

Transmission Losses Service Discussion

    WAPA-RMR has made no changes to the Transmission Losses Service 
formula rate, under Rate Schedule L-AS7. WACM provides Transmission 
Losses Service to all Transmission Service Providers who market 
transmission inside the WACM Control Area. Transmission losses are 
assessed for all real-time and prescheduled transactions on 
transmission facilities inside the WACM Control Area. Customers may 
settle financially or with energy. The pricing for this service will be 
the WACM weighted average hourly purchase price.

LAP Marketing Service Discussion

    WAPA-RMR has implemented a new LAP Marketing rate schedule, L-M1, 
applicable to the sale of LAP surplus energy and capacity products. The 
schedule includes reserves, regulation, and frequency response. If LAP 
surplus products are available, the charge will be determined based on 
market rates, plus administrative costs. The customer will be 
responsible for acquiring transmission service necessary to deliver the 
product(s). This rate schedule is not applicable to transmission 
service and therefore, is not provided through WAPA's OATT.

Rate Schedule Discussion

    Editorial changes have been made to the rate schedules for better 
clarification and to ensure greater consistency between WAPA's regions 
and the OATT, as applicable. In addition, the rate schedules will no 
longer include the unit charge(s) and be updated each year. Annual 
charges will instead be posted on WAPA's Web sites listed above under 
``Provisional Formula Rates'' and on the LAPT and CRCM OASIS Web sites.

Comments

    WAPA-RMR received multiple comments during the public consultation 
and comment period. Comments have been paraphrased where appropriate, 
without compromising the meaning of the comments.
    Comment 1: Customer commented they are supportive of the following 
proposals: (1) Leave unchanged the existing formula rate for 
calculating the ATRR; (2) shorten the forward-looking transmission rate 
projection period; (3) incorporate minor edits to the network formula 
rate schedule; (4) modify the denominator for Firm and Non-firm Point-
to-Point transmission service; (5) incorporate minor edits to the 
Transmission Losses Service formula rate schedule; (6) not modify the 
Unreserved Use formula rate and to make minor edits to the formula rate 
schedule; (7) not modify the SSCD Service formula rate and to make 
minor edits to the formula rate schedule; and (8) leave unchanged the 
Energy Imbalance, Generator Imbalance, and Spinning and Supplemental 
Reserve Services formula rates.
    Response 1: WAPA-RMR acknowledges the Customer's support of these 
proposals.
    Comment 2: Customer commented they support WAPA-RMR's proposal 
regarding the Transmission Losses Service rate; however, customer 
recommends WAPA-RMR perform a transmission loss study if the latest 
loss study was performed more than five years ago. Customer also 
recommends WAPA-RMR perform any loss study through a formal public 
process.
    Response 2: This comment regarding the loss study is outside the 
scope of this rate process, considering WAPA-RMR's formula rate 
schedule does not address the method for calculating the loss rate or 
the process for determining the loss rate, but rather only the method 
in which WACM is to be compensated for providing the losses. However, 
WAPA-RMR does perform loss studies periodically. In fact, several 
months ahead of this rate process, due to various changes within the 
WACM Control Area, WAPA-RMR began conducting a loss study to determine 
the appropriate loss rate to be in effect starting October 1, 2016. 
WAPA-RMR has shared the methodology and the result of this loss study 
with its customers; however, WAPA-RMR no plans to conduct formal public 
processes in order to conduct loss studies and implement loss rates.
    Comment 3: Customer commented they do not support WAPA-RMR's 
proposed changes to the VAR Support Service rate, as WAPA-RMR has not 
provided the underlying data to support the rate. They would like 
details of the costs and the methodology to which those costs are 
assigned to WAPA-RMR's FES customers and to WAPA-RMR's transmission 
customers. Specifically, the customer asked whether: (1) The 
denominator includes all, or a portion of, CRSP long-term point-to-
point reservations supporting hydropower, Customer Displacement Power 
(CDP), and Western Replacement Power (WRP) deliveries; (2) the annual 
maximum Contract Rate of Delivery (CROD) for LAP FES deliveries is a 
component of the VAR Support Service denominator; and (3) whether the 
Network Service load will be derived from prior year actuals or will it 
be derived from a forecast of the rate year?
    Response 3: Since WAPA-RMR is seeking approval of formula rates for 
services previously approved, with the exception of the new LAP 
Marketing formula rate for the Sales of Surplus Products, WAPA-RMR 
focused on highlighting the proposed changes to the formulas of those 
previously approved formula rates. Also, since WAPA-RMR did not have 
all the applicable annual data necessary to update the formulas until 
the June-July timeframe for the upcoming fiscal year rate, WAPA-RMR was 
not able to

[[Page 56641]]

include data for the FY 2017 rates in the proposed formulas during the 
rate process. In order to provide the Customer with the requested 
details, WAPA-RMR has prepared the table below using the FY 2016 rate 
data, since data for the FY 2017 rate was not yet available, with 
modifications to the numerator to include the addition of the ``Other 
Resources'' and to the denominator in order to demonstrate how the 
elimination of the exemptions will impact the rate, as proposed.

                  Reactive Supply and Voltage Control From Generation and Other Sources Service
                              [Example FY 2017 rate design using FY 2016 rate data]
----------------------------------------------------------------------------------------------------------------
                                                                   FY 17 example       FY 16         % change
----------------------------------------------------------------------------------------------------------------
                                               Revenue Requirement
----------------------------------------------------------------------------------------------------------------
LAP Annual Fixed Charge Rate....................................         17.425%         17.425%               0
Total Net LAP Generation Plant Costs............................    $344,385,364    $344,385,364               0
Annual Cost of LAP Generation...................................     $60,010,711     $60,010,711               0
LAP Capacity Used for VAR (1 minus power factor)................          5.984%          5.984%               0
LAP Plant Costs for VAR.........................................      $3,590,825      $3,590,825               0
SLCA/IP Annual Fixed Charge Rate................................          24.84%          24.84%               0
                                                                 -----------------------------------------------
    Total Net SLCA/IP Generation Plant Costs....................    $177,435,000    $177,435,000               0
Annual Cost of SLCA/IP Generation...............................     $44,072,729     $44,072,729               0
SLCA/IP Capability Used for VAR (1 minus power factor)..........          5.670%          5.670%               0
SLCA/IP Plant Costs for VAR.....................................      $2,498,924      $2,498,924               0
Other Resources: Condensing *NEW................................            $446              $0             100
Revenue from VAR Support for FY 2014 non-firm PTP...............       -$842,233       -$842,233               0
Revenue from WACM Transactions *NEW.............................             -$0             -$0               0
Annual VAR Support Revenue Requirement..........................      $5,247,962      $5,247,516            0.01
----------------------------------------------------------------------------------------------------------------
                              Transmission Transactions Requiring VAR Support (kW)
----------------------------------------------------------------------------------------------------------------
LAP FES (12-mo avg of CROD).....................................         582,231         582,231               0
LAPT............................................................         670,622         314,744             113
CRSP FES (CDP, WRP, merchant)...................................       4,758,030         880,507             440
CRCM............................................................       1,025,188         903,188              14
                                                                 -----------------------------------------------
    Total Transmission Transactions Requiring VAR Support (kW),        7,036,071       2,680,670             163
     * INCLUDING ELIMINATED EXEMPTIONS..........................
----------------------------------------------------------------------------------------------------------------
                                                      Rate
----------------------------------------------------------------------------------------------------------------
Monthly Rate/kW-mo..............................................          $0.066          $0.163             -62
----------------------------------------------------------------------------------------------------------------

    Based on customer feedback, and to avoid confusion, rather than 
including the non-Federal Transmission Service Provider's capacity 
usage as another component of the denominator as WAPA-RMR proposed, if 
WACM, as the Control Area operator, supplies any VAR Support on behalf 
of a non-Federal Transmission Service Provider, WACM will assess 
charges based on the unit rate applicable under L-AS2 and the resulting 
revenue will instead be treated as a revenue credit within the L-AS2 
rate design in a subsequent year. As such, WAPA-RMR has changed the 
denominator to now read ``Transmission Transactions that Require VAR 
Support Service (kW).'' The denominator will continue to include only 
LAPT and CRCM's transmission transactions, both point-to-point and 
Network Service, including CRSP's FES, CDP, and WRP deliveries and 
LAP's FES deliveries. It will continue to be based on LAPT and CRCM's 
Network 12-month coincident peak (12cp) values from the most recent 
billing month available (normally May), and LAPT and CRCM's total 
point-to-point reservations expected to be in place during the rate 
year.
    Comment 4: Customer recommends WAPA-RMR provide additional 
information and an example regarding the component in the denominator 
``Transmission Capacity Usage by Other Transmission Service Providers 
inside WACM.'' Customer seeks to better understand how third party 
Transmission Service Providers are a part of the VAR Support Service 
rate for a service WAPA-RMR proposes they are providing only for the 
LAPT and CRCM transmission systems located within the WACM Control 
Area. Customer also requests additional information regarding how WACM 
may assess VAR Support Service charges to Transmission Service 
Providers located in the Control Area found to not be providing 
sufficient VAR support.
    Response 4: As discussed in the Proposed FRN and in the Customer 
Brochure, WACM, as the Control Area operator, is not currently charging 
any non-Federal Transmission Service Providers for VAR Support Service, 
so the proposed capacity component is 0 MW at this time. WACM had 
previously determined that the non-Federal Transmission Service 
Providers within the WACM Control Area have adequate non-Federal 
generation resources and/or other VAR compensating devices connected to 
their transmission systems to self-provide VAR support for the 
transactions on their systems. The potential exists, however, where 
WACM, using facilities under its control, could be providing VAR 
support on behalf of a non-Federal Transmission Service Provider 
(directly or indirectly). As such, language in L-AS2 has been revised 
to clarify how the formula rate applies to CRCM and LAPT as 
Transmission Service Providers and to WACM as the Control Area 
operator. If and when deemed necessary, WACM will assess charges to 
Transmission Service Providers using the unit rate applicable under L-
AS2 against either the Transmission Service Provider's

[[Page 56642]]

reserved capacity or the tagged megawatt usage of the Transmission 
Service Provider's transmission customers.
    As stated above, WAPA-RMR is removing this proposed capacity 
component from the denominator and is instead going to treat any future 
revenue from these potential WACM transactions as revenue credits 
within the numerator of the VAR Support Service rate design.
    Comment 5: Customer requests additional information regarding the 
entity from which a transmission customer will be obtaining VAR Support 
Service as part of the use of transmission located within the WACM 
Control Area. It is not clear if the WACM Control Area is the provider 
of VAR Support Services and LAPT and CRCM Transmission Service 
Providers are providing VAR support on behalf of the WACM Control Area 
or if individual Transmission Service Providers within the WACM Control 
Area are independently providing VAR support. Customer also seeks to 
better understand the role and contribution of non-Federal generation 
resources located inside the WACM Control Area and how those 
contributions support VAR requirements, as these activities are 
primarily performed on a local basis and not necessarily separated by 
Transmission Service Provider ownership within the Control Area 
boundaries.
    Response 5: According to WAPA's OATT, VAR Support Service can be 
provided directly by the Transmission Service Provider if the 
Transmission Service Provider is the Control Area operator or 
indirectly by the Transmission Service Provider making arrangements 
with the Control Area operator performing this service for the 
Transmission Service Provider's system. As such, CRCM and LAPT provide 
VAR Support Service directly to the LAP and CRSP transmission systems. 
CRCM and LAPT assess charges to their transmission customers using a 
rate design that includes only the portion of the Federal generation 
costs applicable to VAR support.
    WACM, as the Control Area operator, through coordinated efforts 
with the Transmission Service Providers, performs this service for the 
non-Federal Transmission Service Providers within the Control Area. As 
previously discussed, WACM had previously determined that the non-
Federal Transmission Service Providers within the WACM Control Area 
have adequate non-Federal generation resources and/or other VAR 
compensating devices connected to their transmission systems to self-
provide VAR support for their systems. In these cases, WACM is not the 
provider of VAR support and therefore does not charge the non-Federal 
Transmission Service Providers for performing this service on their 
behalf. If WACM determines a Transmission Service Provider does not 
have adequate VAR resources, WACM may assess charges to the 
Transmission Service Provider under L-AS2.
    Comment 6: Customer recommends WAPA-RMR provide a list of 
generators and other transmission equipment providing VAR support for 
the LAP and CRSP transmission systems located within the WACM Control 
Area.
    Response 6: The generators providing VAR support for LAP and CRSP 
transmission systems and whose costs are included in the L-AS2 rate 
design are: Alcova, Big Thompson, Blue Mesa, Boysen, Crystal, Estes, 
Flaming Gorge, Flatiron, Fontenelle, Fremont Canyon, Glen Canyon, 
Glendo, Green Mountain, Guernsey, Heart Mountain, Kortes, Morrow Point, 
Mary's Lake, Molina, Mt. Elbert, Polehill, Seminoe, Towaoc, Willow 
Creek, and Yellowtail. The costs for the transmission equipment (i.e., 
reactors and shunt capacitors) providing VAR support for the LAP and 
CRSP transmission systems are not included in the L-AS2 rate design, 
but are instead included in each Project's respective transmission 
rate.
    Comment 7: Customer requests additional information regarding the 
process in which WAPA-RMR may exclude charges for VAR Support Service 
for a transmission customer. Customer seeks to better understand the 
application and the governing agreement used to qualify a transmission 
customer for exemption, i.e., is the exclusion an all or nothing 
election or is there a pro-rated off-set or credit for eligibility 
exemption?
    Response 7: According to WAPA's OATT, VAR Support Service is a 
service Transmission Service Providers must offer for each transaction 
on its transmission system and the transmission customers must 
purchase. As discussed in the Customer Brochure, LAPT and CRCM may 
allow a LAP or CRSP transmission customer who requests an exemption to 
receive an exemption from VAR Support Service charges related to its 
LAP or CRSP transmission service if they have a generating plant 
directly connected to the LAP or CRSP transmission system. The 
generator must have the capability to provide VARs and the transmission 
customer must execute a contract with WAPA-RMR stipulating all the 
provisions of their VAR support self-supply. WAPA-RMR will work with 
customers to evaluate their particular circumstances.
    Comment 8: Customer commented they are generally supportive of the 
concept to more accurately allocate costs based on cost causation 
principals by applying a cost multiplier; however, Customer has 
concerns regarding how WAPA-RMR plans to assess Regulation Service 
charges under its proposal for three example scenarios: (1) A 
distribution cooperative purchases the output of a 2 MW wind farm 
connected to a 34.5-kV distribution system from a third party. The 
distribution system is connected to a 34.5/115-kV transformer and is 
metered on the low side of the transformer. The maximum output of the 
wind farm is less than the local load served through the 34.5/115-kV 
transformer connected off the transmission system; (2) A retail 
customer of a distribution cooperative with a load of 15 MW installs a 
10 MW wind farm behind its retail revenue meter to self-supply a 
portion of its load requirements; and (3) A transmission customer 
purchases the output of a solar facility located physically outside of 
the WACM Control Area and the transmission customer requests to 
dynamically meter the solar facility into the WACM Control Area and 
WACM approves the request.
    With respect to scenarios 1 and 2, Customer considers them to not 
be subject to Regulation Service VER charges from WAPA-RMR for several 
reasons. First, Customer does not own, control, or lease the resources. 
Second, Customer cannot designate these resources as Network resources. 
Third, the VER is located on the underlying distribution system or 
behind a retail customer's revenue meter, and the resources do not 
utilize transmission located inside the WACM Control Area. Fourth, 
local load self-supply by Customer's member owners allows for member 
owners to serve up to five percent of their load by non-customer owned, 
controlled, or leased resources. Customer is responsible for delivering 
resources it owns, controls, or leases to the remaining load not self-
provided by its members. Customer supports cost causation principles to 
allocate regulation costs, however, Customer does not support costs 
shifted to it as a transmission customer of WAPA-RMR for resources for 
which Customer has no responsibility and over which Customer has no 
control. Customer believes they should be subject only to Regulation 
Service VER charges for VER they own, control, or lease and which is 
located within the WACM Control Area.
    Customer requests WAPA-RMR to identify the entity responsible for

[[Page 56643]]

specific eligible charges for Regulation Service for VER located in the 
WACM Control Area. Are these resources subject to Regulation Service 
charges under WAPA's OATT? Customer requests WAPA-RMR provide the 
supporting OATT language of WAPA-RMR's determination of the responsible 
entity.
    Response 8: The application of the load-based assessment to the 
installed nameplate of VER serving load inside the WACM Control Area 
has been in place since June 2006. WAPA-RMR did not propose a change to 
the assessment. WAPA-RMR proposed to include only the ``variable 
capacity multipliers'' to the assessment.
    All loads inside the Control Area consume regulation; therefore, 
WACM, by default, provides Regulation Service to all loads inside the 
Control Area. As such, WAPA-RMR's Regulation Service formula rate 
schedule L-AS3 is a combined rate schedule applicable to CRCM and LAPT 
as Transmission Service Providers and to WACM as the Control Area 
operator.
    WAPA-RMR's OATT is applicable to Federal transmission service, not 
to services provided by the WACM Control Area. WAPA-RMR establishes 
Business Practices to document policies/practices applicable to the 
Control Areas. WAPA's OATT does not specifically address how Regulation 
Service is to be charged under these scenarios, but WAPA-RMR has posted 
a Business Practice that specifically addresses behind the meter 
generation. Based on customer feedback, WAPA-RMR will pursue providing 
more specific details related to these types of scenarios in a new 
Business Practice.
    Since 2006, L-AS3 has been applicable to all variable generators 
inside the WACM Control Area. WACM does not differentiate where the 
variable resource is connected to any elements of the transmission 
system, e.g., directly connected to a transmission line, direct 
interconnection to a substation, or connected to the distribution 
system behind the customer's meter. The Regulation Service provided by 
WACM for the variable resource is to mitigate the minute-to-minute 
variation of the generator output. The Regulation need is the same no 
matter where the variable resource is connected. WAPA-RMR acknowledges 
any resource behind the customer's meter reduces the customer's energy 
requirements, but the transmission service and ancillary services for 
said load is not decreased by the variable resource behind the 
customer's meter. Variable resource, by definition, is intermittent, 
non-dispatchable, and has a unique energy profile whether it is netted 
to load or sent elsewhere.
    When a Federal transmission customer or a WACM customer purchases 
the output of a variable resource located outside the WACM Control 
Area, and statically schedules it into WACM, the application of the 
load-based assessment on the VER nameplate is not applicable since the 
regulation service for the resource is being provided by the host or 
native Balancing Authority (where the VER resides). If a Federal 
transmission customer or a WACM customer requests to dynamically 
transfer the output of a VER that resides in another Balancing 
Authority to the WACM Control Area, WACM will work with the customer to 
dynamically transfer the VER from the native Balancing Authority to the 
WACM Control Area. Under this condition, and with installation of 
proper telemetry and inclusion of the variable resource in its AGC, 
WACM will be providing the Regulation Service for the VER generator and 
the application of the load-based assessment on the VER nameplate is 
applicable.
    Comment 9: Customer recommends WAPA-RMR provide the quantity of 
renewable resources comprised of solar generation located within the 
WACM Control Area that would result in WAPA-RMR applying a capacity 
multiplier other than 1.00.
    Response 9: As stated in the Proposed FRN, WACM does not have a 
significant amount of solar generation impacting its Control Area; 
therefore, does not have sufficient solar generation data available to 
perform a thorough analysis to determine a more specific solar 
multiplier at this time. The multipliers are determined based on the 
size of the resource, as well as the behavior and diversity of those 
resources and how they impact the Control Area, so a specific quantity 
of solar generation which would result in changing the multiplier is 
unknown at this time.
    Comment 10: Customer recommends in lieu of an annual update to the 
variable capacity multiplier, if the annual update calculation results 
in a multiplier change of .25 or more (higher or lower) from the 
previous multiplier, then an update to the multiplier would be 
appropriate. Customer also recommends WAPA-RMR update the multiplier in 
increments of 0.25.
    Response 10: WAPA-RMR conducted an analysis which shows allowing a 
difference in the multiplier up to 0.24 would result in a cost shift in 
the rate design of approximately 3-4% between the VER and non-VER 
customers. WAPA-RMR has determined that this cost shift is not 
warranted because the correct multiplier will be known at the time the 
annual rate design is updated.
    Comment 11: Customer asked if WAPA-RMR anticipates the total 
revenue collection for regulation will increase due to the rate 
proposal.
    Response 11: The only proposed change to the Regulation Service 
formula rate was to implement the ``variable capacity multipliers.'' 
This change will impact the denominator of the rate and will change how 
much of the revenue requirement is collected from customers with VER 
and from customers without VER, but it has no impact on the total 
revenue collected because it has no impact on the revenue requirement.
    Comment 12: Customer commented they do not support WAPA-RMR's 
current proposal to develop a new rate schedule for LAP Marketing to 
sell surplus products as they believe it, as currently written, 
provides very little detail and it is unclear how the proposal will be 
used by WAPA-RMR in its management of delivery of hydropower to FES 
customers as well as the marketing of excess non-firm transmission to 
transmission customers available after meeting FES delivery 
obligations. The new rate schedule appears to support the marketing of 
available products and resources to wholesale electricity market 
participants at market-based rates in lieu of offering products to FES 
customers on a cost-based basis. They recommend WAPA-RMR not pursue 
development of the proposed L-M1 rate schedule at this time, even 
though they agree WAPA-RMR should have a more formal level of 
documentation of new products it may have available to offer to its FES 
customers and agrees this should be supported through the formal public 
process.
    If WAPA-RMR moves forward with the proposal, Customer recommends if 
excess products are available for sale (regardless of duration) the FES 
customers are provided first opportunity to purchase excess products 
from WAPA-RMR on a cost-based delivery basis and not at prevailing 
market prices. Customer also recommends WAPA-RMR provide to its FES 
customers the supporting rate sheet data for products offered to FES 
customers so they can better understand the cost drivers for a product.
    Response 12: WAPA-RMR intends to use this rate schedule to offer 
products to FES and other customers. LAP cannot always sell these 
surplus products at cost to FES or other customers due to more 
competitive market options; therefore, the rates have been

[[Page 56644]]

discounted to make the sales possible. As such, WAPA-RMR is not able to 
provide specific rate sheet data for these types of transactions. The 
revenue LAP receives from these surplus sales offsets expenses, which 
is a benefit to the LAP power rate and all FES customers.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents used by WAPA-RMR to develop the Provisional Formula Rates are 
available for inspection and copying at the Rocky Mountain Regional 
Office, 5555 East Crossroads Boulevard, Loveland, Colorado. Many of 
these documents are also available on WAPA-RMR's Web site located at 
https://www.wapa.gov/regions/RM/rates/Pages/2017-rate-adjustment.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969, 42 U.S.C. 4321-4347; the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), WAPA 
has determined this action is categorically excluded from the 
preparation of an environmental assessment or an environmental impact 
statement. A copy of the categorical exclusion determination is 
available on WAPA-RMR's Web site located at https://www.wapa.gov/regions/RM/environment/Pages/CX2016.aspx. Look for file entitled, 
``2016-077 Prop Formula Rate Adjust for Transmission Ancillary Services 
and Sale of Surplus Prods 031016.''

Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

Submission to the Federal Energy Regulatory Commission

    The formula rates herein confirmed, approved, and placed into 
effect on an interim basis, together with supporting documents, will be 
submitted to FERC for confirmation and final approval.

ORDER

    In view of the foregoing, and under the authority delegated to me, 
I confirm and approve on an interim basis, effective the first full 
billing period on or after October 1, 2016, formula rates for LAP 
Transmission; CRSP, LAP, and WACM Ancillary Services; WACM Transmission 
Losses, and LAP Marketing Sales of Surplus Products under Rate 
Schedules L-NT1, L-FPT1, L-NFPT1, L-UU1, L-AS1, L-AS2, L-AS3, L-AS4, L-
AS5, L-AS6, L-AS7, L-AS9, and L-M1. These rate schedules shall remain 
in effect on an interim basis, pending FERC's confirmation and approval 
of them, or substitute formula rates, on a final basis through 
September 30, 2021.
Dated: August 12, 2016

Elizabeth Sherwood-Randall
Deputy Secretary of Energy

Rate Schedule L-NT1

ATTACHMENT H to OATT

(Supersedes Rate Schedule L-NT1 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects

NETWORK INTEGRATION TRANSMISSION SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    The Transmission Customer will compensate the Loveland Area 
Projects Transmission Service Provider (LAPT) each month for Network 
Integration Transmission Service under the applicable Network 
Integration Transmission Service Agreement and the Annual Transmission 
Revenue Requirement described herein.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.024

    A calculated Annual Transmission Revenue Requirement will go into 
effect every October 1 based on updated financial projections and the 
true-up of previous projections. The Annual Transmission Revenue 
Requirement will be posted on the LAPT Open Access Same-Time 
Information System Web site.

Rate Schedule L-FPT1

SCHEDULE 7 to OATT

(Supersedes Rate Schedule L-FPT1 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects

LONG-TERM FIRM AND SHORT-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    The Transmission Customer shall compensate the Loveland Area 
Projects Transmission Service Provider (LAPT) each month for reserved 
capacity under the applicable Firm Point-to-Point Transmission Service 
Agreement and the formula rate described herein.

Formula Rate

[[Page 56645]]

[GRAPHIC] [TIFF OMITTED] TN22AU16.025

    A calculated charge will go into effect every October 1 based on 
the formula above, updated financial and load projections, and the 
true-up of previous projections. The annual charge will be posted on 
the LAPT Open Access Same-Time Information System (OASIS) Web site.

Discounts

    Three principal requirements apply to discounts for transmission 
service as follows: (1) Any offer of a discount made by LAPT must be 
announced to all eligible customers solely by posting on the LAPT OASIS 
Web site; (2) any customer-initiated requests for discounts, including 
requests for use by LAP Marketing, must occur solely by posting on the 
LAPT OASIS Web site; and (3) once a discount is negotiated, details 
must be immediately posted on the LAPT OASIS Web site. For any discount 
agreed upon for service on a path, from Point(s) of Receipt to Point(s) 
of Delivery, LAPT must offer the same discounted transmission service 
rate for the same time period to all eligible customers on all 
unconstrained transmission paths that go to the same point(s) of 
delivery on the transmission system.

Rate Schedule L-NFPT1

SCHEDULE 8 to OATT

(Supersedes Rate Schedule L-NFPT1 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN POWER AREA ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects

NON-FIRM POINT-TO-POINT TRANSMISSION SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    The Transmission Customer will compensate the Loveland Area 
Projects Transmission Service Provider (LAPT) for Non-Firm Point-to-
Point Transmission Service under the applicable Non-Firm Point-to-Point 
Transmission Service Agreement and the formula rate described herein.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.026

    A calculated charge will go into effect every October 1 based on 
the formula above, updated financial and load projections, and the 
true-up of previous projections. The annual charge will be posted on 
the LAPT Open Access Same-Time Information System (OASIS) Web site.

Discounts

    Three principal requirements apply to discounts for transmission 
service as follows: (1) any offer of a discount made by LAPT must be 
announced to all eligible customers solely by posting on the LAPT OASIS 
Web site; (2) any customer-initiated requests for discounts, including 
requests for use by LAP Marketing, must occur solely by posting on the 
LAPT OASIS; and (3) once a discount is negotiated, details must be 
immediately posted on the LAPT OASIS. For any discount agreed upon for 
service on a path, from Point(s) of Receipt to Point(s) of Delivery, 
LAPT must offer the same discounted transmission service charge for the 
same time period to all eligible customers on all unconstrained 
transmission paths that go to the same point(s) of delivery on the 
transmission system.

Rate Schedule L-UU1

SCHEDULE 10 to OATT

(Supersedes Rate Schedule L-UU1 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects

UNRESERVED USE PENALTIES

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    The Transmission Customer shall compensate the Loveland Area 
Projects Transmission Service Provider (LAPT) each month for any 
unreserved use of the transmission system (Unreserved Use) under the 
applicable transmission service formula rates as described herein. 
Unreserved Use occurs when an eligible customer uses transmission 
service it has not reserved or a Transmission Customer uses 
transmission service in excess of its reserved capacity. Unreserved Use 
may also include a Transmission Customer's failure to curtail 
transmission when requested, a Network Integration Transmission Service 
(Network) Customer's scheduled delivery of off-system non-designated 
purchases using transmission capacity reserved for designated Network 
resources, and a Network Customer's use of Network service or secondary 
service to facilitate a wholesale sale that does not serve a Network 
load.

Penalty Rate

    The penalty charge for a Transmission Customer who engages in 
Unreserved Use is 200 percent of the Loveland Area Project's approved 
formula rate for Firm Point-to-Point Transmission Service

[[Page 56646]]

assessed as follows: the Unreserved Use Penalty for a single hour of 
Unreserved Use is based upon the charge for daily Firm Point-to-Point 
Transmission Service. The Unreserved Use Penalty for more than one 
assessment for a given duration (e.g., daily) increases to the next 
longest duration (e.g., weekly). The Unreserved Use Penalty for 
multiple instances of Unreserved Use (e.g., more than one hour) within 
a day is based on the charge for daily Firm Point-to-Point Transmission 
Service. The Unreserved Use Penalty for multiple instances of 
Unreserved Use isolated to one calendar week is based on the charge for 
weekly Firm Point-to-Point Transmission Service. The Unreserved Use 
Penalty for multiple instances of Unreserved Use during more than one 
week in a calendar month is based on the charge for monthly Firm Point-
to-Point Transmission Service.
    A Transmission Customer who exceeds their reserved capacity at any 
point of receipt or point of delivery, or an eligible customer who uses 
transmission service at a point of receipt or point of delivery it has 
not reserved, is required to pay for all ancillary services provided by 
LAPT and associated with the Unreserved Use. The Transmission Customer 
will pay for ancillary services based on the amount of transmission 
service it used and did not reserve.

Rate Schedule L-AS1

SCHEDULE 1 to OATT

(Supersedes Rate Schedule SP-SD4 and Rate Schedule L-AS1 dated October 
1, 2011, through September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Colorado River Storage Project

Loveland Area Projects

Western Area Colorado Missouri Balancing Authority

SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to Colorado River Storage Project 
Transmission (CRCM) and Loveland Area Projects Transmission (LAPT) as 
Transmission Service Providers (TSPs) and to Western Area Colorado 
Missouri Balancing Authority (WACM) as the Control Area operator. 
Scheduling, System Control, and Dispatch Service is required to 
schedule the movement of power through, out of, within, or into WACM. 
This service can be provided only by the operator of the Control Area 
in which the transmission facilities used for transmission service are 
located.
    The CRCM and LAPT TSPs must offer this service and the Federal 
Transmission Customers must purchase this service from the CRCM and 
LAPT TSPs. WACM provides this service on behalf of all TSPs within WACM 
and those TSPs must purchase this service from WACM.
    The charge will be applied to all schedules, except those for the 
delivery of transmission losses to WACM. WACM will accept any number of 
scheduling changes over the course of the day without any additional 
charge. Unless other arrangements are made with WACM, the charge will 
be allocated equally among all TSPs, both Federal and non-Federal, 
listed on the schedule who are inside WACM. The Federal transmission 
segments of the schedule are exempt from invoicing, as costs for these 
segments are included in the CRCM and LAPT transmission service rates.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.027


[[Page 56647]]


    The annual cost of scheduling personnel and related costs includes 
annual costs associated with transmission scheduling (i.e., personnel, 
facilities, equipment and software, as well as credits representing 
fees for agent services).
    The number of schedules per year is the yearly total of daily tags 
which result in a schedule, excluding loss schedules.
    A calculated charge will go into effect every October 1 based on 
the formula above and updated financial and schedule data. The annual 
charge will be posted on the CRCM and LAPT Open Access Same-Time 
Information System Web sites.

Rate Schedule L-AS2

SCHEDULE 2 to OATT

(Supersedes Rate Schedule SP-RS4 and Rate Schedule L-AS2 dated October 
1, 2011, through September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Colorado River Storage Project

Loveland Area Projects

Western Area Colorado Missouri Balancing Authority

REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION OR OTHER SOURCES 
SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs first.

Applicable

    This rate schedule applies to Colorado River Storage Project (CRCM) 
and Loveland Area Projects (LAPT) as Transmission Service Providers 
(TSPs) and to Western Area Colorado Missouri Balancing Authority (WACM) 
as the Control Area operator. Reactive Supply and Voltage Control from 
Generation or Other Sources Services (VAR Support Service) is required 
to maintain transmission voltages on the TSPs transmission facilities 
within acceptable limits, using generation facilities and non-
generation resources capable of providing this service to produce or 
absorb reactive power. Thus, VAR Support Service must be provided for 
each transaction on the transmission facilities within the Control 
Area. The amount of VAR Support Service supplied to the transmission 
transactions will be based on the VAR Support Service necessary to 
maintain transmission voltages within limits generally accepted in the 
region and consistently adhered to by WACM.
    The CRCM and LAPT TSPs must offer this service for each transaction 
and the Federal Transmission Customers must purchase this service from 
the CRCM and LAPT TSPs, unless the Transmission Customer has generating 
resources capable of providing VARs directly connected to a Federal 
transmission facility owned and operated by CRCM and/or LAPT and has 
executed a contract stipulating all the provisions of their self-
supply. If WACM provides VAR Support Service on behalf of any non-
Federal TSP, VAR Support Service will be assessed based on either the 
TSP's reserved capacity or the tagged megawatt usage of the TSP's 
Transmission Customers.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.028


[[Page 56648]]


    The annual revenue requirement for VAR Support Service equals the 
revenue requirement for Federal generation times the % of resource 
capacity used for VAR Support Service (1 minus power factor) plus other 
resources, e.g., energy and transmission costs for condensing Federal 
generating units minus applicable revenue credits related to WACM 
providing service.
    The transmission transactions requiring VAR Support Service equals 
transmission capacity use of the Federal transmission systems; 
including point-to-point and network service on LAPT and CRCM 
transmission systems.
    A calculated charge will go into effect every October 1 based on 
the formula above and updated financial and capacity data. The annual 
charge will be posted on the CRCM and LAPT Open Access Same-Time 
Information System Web sites.

Rate Schedule L-AS3

SCHEDULE 3 to OATT

(Supersedes Rate Schedule SP-FR4 and Rate Schedule L-AS3 dated October 
1, 2011, through September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Colorado River Storage Project

Loveland Area Projects

Western Area Colorado Missouri Balancing Authority

REGULATION AND FREQUENCY RESPONSE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to Colorado River Storage Project (CRCM) 
and Loveland Area Projects (LAPT) as Transmission Service Providers 
(TSPs) and to Western Area Colorado Missouri Balancing Authority (WACM) 
as the Control Area operator. Regulation and Frequency Response Service 
(Regulation Service) is necessary to provide for the continuous 
balancing of resources, generation, and interchange with load and for 
maintaining scheduled interconnection frequency at sixty cycles per 
second (60 Hz). Regulation Service is accomplished by committing on-
line generation whose output is raised or lowered, predominantly 
through the use of automatic generation control (AGC) equipment as 
necessary, to follow the moment-by-moment changes in load. All loads 
inside the Control Area consume regulation; therefore, WACM, by 
default, provides Regulation Service to all loads inside the Control 
Area.
    The CRCM and LAPT TSPs offer this service when transmission service 
is used to serve load within WACM and the Federal Transmission 
Customers must purchase this service from the CRCM and LAPT TSPs or 
make alternative comparable arrangements with WACM to satisfy their 
regulation obligations. For the Load Serving Entities (LSEs) who are 
not taking transmission service from CRCM and LAPT, WACM will assess 
Regulation Service charges for their load and for their variable 
resources inside WACM.
    The formula rate will be assessed to all applicable Federal 
Transmission Customers and to all applicable non-Federal LSEs serving 
load inside WACM.

Formula Rate
[GRAPHIC] [TIFF OMITTED] TN22AU16.029

    The total annual revenue requirement for Regulation Service 
includes such costs as LAP and CRSP plant costs, purchases of 
regulation products, purchases of power in support of the generating 
units' ability to regulate, purchases of transmission for regulating 
units trapped geographically inside another balancing authority, 
purchases of transmission required to relocate energy due to 
regulation/load following issues, and lost on-peak sales opportunities 
resulting from the requirement to generate at night to permit units to 
have ``down'' regulating capability.
    The total load for Regulation Service equals load inside WACM 
requiring Regulation Service, plus the installed nameplate capacity of 
wind generators serving load inside WACM times the wind capacity 
multiplier, plus the installed nameplate capacity of solar generators 
serving load inside WACM times the solar capacity multiplier.
    A calculated charge will go into effect every October 1 based on 
the formula above and updated financial, load, and capacity multiplier 
data. The annual charge and multipliers will be posted on the CRCM and 
LAPT Open Access Same-Time Information System Web sites.

[[Page 56649]]

Types

    There are two different applications of this Formula Rate:
    1. Load-based Assessment: The charge is assessed on an entity's 
auxiliary load (total metered load less applicable Federal 
entitlements) and on the amount stated in any BA or transmission 
service agreements. The charge is also applied to the installed 
nameplate capacity of all variable energy resources, including wind and 
solar generators, serving load inside WACM multiplied by the applicable 
annually calculated Capacity Multiplier.
    2. Self-provision Assessment: WACM allows entities with AGC to 
self-provide for all or a portion of their loads. Entities with AGC are 
known as Sub-Balancing Authorities (SBA) and must meet all of the 
following criteria:
    a. Have a well-defined boundary, with WACM-approved revenue-quality 
metering, accurate as defined by the North American Electric 
Reliability Corporation (NERC), to include Megawatt flow data 
availability at 6-second or smaller intervals;
    b. Have AGC responsive unit(s);
    c. Demonstrate Regulation Service capability; and
    d. Execute a contract with WACM in which entities agree to:
    i. Provide all requested data to WACM.
    ii. Meet SBA error criteria as described below.
    Self-provision is measured by use of the entity's 1-minute average 
Area Control Error (ACE) to determine the amount of self-provision. The 
ACE is used to calculate the Regulation Service charges every hour as 
follows:
    a. If the entity's 1-minute average ACE for the hour is less than 
or equal to 0.5 percent of its hourly average load, no Regulation 
Service charge is assessed for that hour.
    b. If the entity's 1-minute average ACE for the hour is greater 
than or equal to 1.5 percent of its hourly average load, WACM assesses 
Regulation Service charges to the entity's entire auxiliary load, using 
the hourly Load-based Assessment applied to the entity's auxiliary 12-
cp load for that month.
    c. If the entity's 1-minute average ACE for the hour is greater 
than 0.5 percent of its hourly average load, but less than 1.5 percent 
of its hourly average load, WACM assesses Regulation Service charges 
based on linear interpolation of zero charge and full charge, using the 
hourly Load-based Assessment applied to the entity's auxiliary 12-cp 
load for that month.
    d. WACM monitors the entity's Self-provision on a regular basis. If 
WACM determines the entity has not been attempting to self-regulate, 
WACM will, upon notification, employ the Load-based Assessment 
described in No. 1, above.

Alternative Arrangements

    Exporting Variable Resource Requirement: WACM does not provide 
Regulation Service to variable resources inside the WACM Control Area 
which are not used to serve load inside the WACM Control Area. An 
entity that exports the output from a variable generator to another 
Control Area will be required to dynamically meter or dynamically 
schedule the resource out of the WACM Control Area to another Control 
Area unless arrangements, satisfactory to WACM, are made for the entity 
to acquire this service from a third party or self-supply (as outlined 
below). A variable generator is one whose output is volatile and 
variable due to factors beyond direct operational control and, 
therefore, is not dispatchable.
    Self- or Third-party supply: WACM may allow an entity to supply 
some or all of its required regulation, or contract with a third party 
to do so. This entity must have revenue quality metering at every load 
and generation point, accurate as defined by NERC, to include MW flow 
data availability at 6-second or smaller intervals. WACM will evaluate 
the entity's metering, telecommunications and regulating resource, as 
well as the required level of regulation, and determine whether the 
entity qualifies to self-supply under this provision. If approved, the 
entity is required to enter into a separate agreement with WACM which 
will specify the terms of the self-supply application.

Customer Accommodation

    For entities unwilling to take Regulation Service, self-provide as 
described above, or acquire the service from a third party, WACM will 
assist the entity in dynamically metering its loads/resources to 
another Control Area. Until such time as meter configuration is 
accomplished, the entity will be responsible for charges assessed under 
the formula rate in effect.

Rate Schedule L-AS4

SCHEDULE 4 to OATT

(Supersedes Rate Schedule L-AS4 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects

Western Area Colorado Missouri Balancing Authority

ENERGY IMBALANCE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to Loveland Area Projects (LAPT) as the 
Transmission Service Provider (TSP) and to Western Area Colorado 
Missouri Balancing Authority (WACM) as the Control Area operator. WACM 
provides Energy Imbalance Service when a difference occurs between the 
scheduled and the actual delivery of energy to a load located within 
the Control Area over a single hour. Energy Imbalance Service is 
calculated as resources minus obligations (adjusted for transmission 
and transformer losses) for any combination of generation, scheduled 
transfers, transactions, or actual load integrated over each hour.
    The LAPT TSP must offer this service when the transmission service 
is used to serve load within WACM and the Federal Transmission 
Customers must purchase this service from the LAPT TSP or make 
alternative comparable arrangements with WACM to satisfy their Energy 
Imbalance obligations. By default, WACM, as the Control Area operator, 
provides Energy
    Imbalance Service to all entities within its Control Area 
footprint. All entities who serve load inside WACM must enter into 
separate agreements with WACM which will specify the terms of the 
Energy Imbalance Service.

Formula Rate

    Imbalances are calculated in three deviation bands as follows. The 
term ``metered load'' is defined to be ``metered load adjusted for 
losses.''
    1. An imbalance of less than or equal to 1.5 percent of metered 
load (or 4 MW, whichever is greater) for any hour is settled 
financially at 100 percent of the

[[Page 56650]]

WACM weighted average hourly energy price.
    2. An imbalance between 1.5 percent and 7.5 percent of metered load 
(or 4 to 10 MW, whichever is greater) for any hour is settled 
financially at 90 percent of the WACM weighted average hourly energy 
price when net energy scheduled exceeds metered load or 110 percent of 
the WACM weighted average hourly energy price when net energy scheduled 
is less than metered load.
    3. An imbalance greater than 7.5 percent of metered load (or 10 MW, 
whichever is greater) for any hour is settled financially at 75 percent 
of the WACM weighted average hourly energy price when net energy 
scheduled exceeds metered load or 125 percent of the WACM weighted 
average hourly energy price when net energy scheduled is less than 
metered load.
Pricing:
    All Energy Imbalance Service provided by WACM is accounted for 
hourly and settled financially. The WACM aggregate imbalance determines 
the energy pricing used in all deviation bands. A surplus dictates the 
use of sale pricing; a deficit dictates the use of purchase pricing. 
When no hourly data is available, the pricing defaults for sales and 
purchase pricing are applied in the following order:
    1. Weighted average sale or purchase pricing for the day (on- and 
off-peak).
    2. Weighted average sale or purchase pricing for the month (on- and 
off-peak).
    3. Weighted average sale or purchase pricing for the prior month 
(on- and off-peak).
    4. Weighted average sale or purchase pricing for the month prior to 
the prior month (and continuing until sale or purchase pricing is 
located) (on- and off-peak).
    Expansion of the bandwidth may be allowed during the following 
instances:
    1. Response to the loss of a physical resource.
    2. During transition of large base-load thermal resources (capacity 
greater than 200 MW) between off-line and on-line following a reserve 
sharing group response, when the unit generates less than the 
predetermined minimum scheduling level.
    During periods of Balancing Authority operating constraints, WACM 
reserves the right to eliminate credits for over-deliveries. The cost 
to WACM of any charge assessed by a reliability oversight agency due to 
a violation of operating standards resulting from under-delivery or 
over-delivery of energy may be passed through to Energy Imbalance 
Service Customers.

Rate Schedule L-AS9

SCHEDULE 9 to OATT

(Supersedes Rate Schedule L-AS9 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects and

Western Area Colorado Missouri Balancing Authority

GENERATOR IMBALANCE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to Loveland Area Projects (LAPT) as the 
Transmission Service Provider (TSP) and to Western Area Colorado 
Missouri Balancing Authority (WACM) as the Control Area operator. WACM 
provides Generator Imbalance Service when there is a difference between 
actual generation and scheduled generation for each hour.
    The LAPT TSP must offer this service when transmission service is 
used to deliver energy to serve load within WACM and the Federal 
Transmission Customers must purchase this service from the LAPT TSP or 
make alternative comparable arrangements with WACM to satisfy their 
Generator Imbalance obligations. By default, WACM, as the Control Area 
operator, provides Generator Imbalance Service to all entities within 
its Control Area footprint. All entities who have generation inside 
WACM must enter into separate agreements with WACM which will specify 
the terms of the Generator Imbalance Service.
    This formula rate applies to all jointly-owned generators (unless 
arrangements are made to allocate actual generation to each individual 
owner), variable generators (unless arrangements are made to assess the 
variable generator under Rate Schedule L-AS4), and any non-variable 
generators without associated load inside the WACM Control Area.

Formula Rate

    Imbalances are calculated in three deviation bands as follows:
    1. An imbalance of less than or equal to 1.5 percent of metered 
generation (or 4 MW, whichever is greater) for any hour is settled 
financially at 100 percent of the WACM weighted average hourly energy 
price.
    2. An imbalance between 1.5 percent and 7.5 percent of metered 
generation (or 4 to 10 MW, whichever is greater) for any hour is 
settled financially at 90 percent of the WACM weighted average hourly 
energy price when actual generation exceeds scheduled generation or 110 
percent of the WACM weighted average hourly energy price when actual 
generation is less than scheduled generation.
    3. An imbalance greater than 7.5 percent of metered generation (or 
10 MW, whichever is greater) for any hour is settled financially at 75 
percent of the WACM weighted average hourly energy price when actual 
generation exceeds scheduled generation or 125 percent of the WACM 
weighted average hourly energy price when actual generation is less 
than scheduled generation.
    Variable generators are exempt from 25 percent penalties. All 
imbalances greater than 1.5 percent of metered generation are subject 
only to a 10 percent penalty.
Pricing:
    All Generator Imbalance Service provided by WACM is accounted for 
hourly and settled financially. The WACM aggregate imbalance determines 
the energy pricing used in all deviation bands. A surplus dictates the 
use of sale pricing; a deficit dictates the use of purchase pricing. 
When no hourly data is available, the pricing defaults for sales and 
purchase pricing are applied in the following order:
    1. Weighted average sale or purchase pricing for the day (on- and 
off-peak).
    2. Weighted average sale or purchase pricing for the current month 
(on- and off-peak).
    3. Weighted average sale or purchase pricing for the prior month 
(on- and off-peak).
    4. Weighted average sale or purchase pricing for the month prior to 
the prior month (and continuing until sale or purchase pricing is 
located) (on- and off-peak).
    Expansion of the bandwidth may be allowed during the following 
instances:
    1. Response to the loss of a physical resource.
    2. During transition of large base-load thermal resources (capacity 
greater than 200 MW) between off-line and on-line following a reserve 
sharing group response, when the unit generates less than the 
predetermined minimum scheduling level.
    During periods of Balancing Authority operating constraints, WACM 
reserves

[[Page 56651]]

the right to eliminate credits for over-deliveries. The cost to WACM of 
any charge assessed by a reliability oversight agency due to a 
violation of operating standards resulting from under-delivery or over-
delivery of energy may be passed through to Generator Imbalance Service 
Customers.

Rate Schedule L-AS5

SCHEDULE 5 to OATT

(Supersedes Rate Schedule L-AS5 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects and

Western Area Colorado Missouri Balancing Authority

OPERATING RESERVE--SPINNING RESERVE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to Loveland Area Projects (LAPT) as the 
Transmission Service Provider (TSP) and to Western Area Colorado 
Missouri Balancing Authority (WACM) as the Control Area operator. 
Spinning Reserve Service is needed to serve load immediately in the 
event of a system contingency. Spinning Reserve Service may be provided 
by generating units that are on-line and loaded at less than maximum 
output.
    The LAPT TSP must offer this service when transmission service is 
used to serve load within WACM and the Federal Transmission Customers 
must purchase this service from the LAPT TSP or make alternative 
comparable arrangements with WACM to satisfy their Spinning Reserve 
obligations. WACM may be willing to provide Spinning Reserves to other 
entities, providing the entities enter into separate agreements with 
WACM which will specify the terms of the Spinning Reserve Service.

Formula Rate

    The LAPT TSP and WACM have no Spinning Reserves available for sale. 
At a customer's request, the Rocky Mountain Region will purchase 
Spinning Reserves and pass through the cost and any activation energy, 
plus a fee for administration. The customer will be responsible for 
providing the transmission to deliver the Spinning Reserves purchased.

Rate Schedule L-AS6

SCHEDULE 6 to OATT

(Supersedes Rate Schedule L-AS6 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects and

Western Area Colorado Missouri Balancing Authority

OPERATING RESERVE--SUPPLEMENTAL RESERVE SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to the Loveland Area Projects (LAPT) as 
the Transmission Service Provider (TSP) and the Western Area Colorado 
Missouri Balancing Authority (WACM) as the Control Area operator. 
Supplemental Reserve Service is needed to serve load in the event of a 
system contingency; however, it is not available immediately to serve 
load but rather within a short period of time. Supplemental Reserve 
Service may be provided by generating units that are on-line but 
unloaded, by quick-start generation, or by interruptible load.
    The LAPT TSP must offer this service when the transmission service 
is used to serve load within WACM and the Federal Transmission 
Customers must purchase this service from the LAPT TSP or make 
alternative comparable arrangements with WACM to satisfy their 
Supplemental Reserve obligations. WACM may be willing to provide 
Supplemental Reserves to other entities, providing the entities enter 
into separate agreements with WACM which will specify the terms of the 
Supplemental Reserve Service.

Formula Rate

    The LAPT TSP and WACM have no Supplemental Reserves available for 
sale. At a customer's request, the Rocky Mountain Region will purchase 
Supplemental Reserves and pass through the cost and any activation 
energy, plus a fee for administration. The customer will be responsible 
for providing the transmission to deliver the Supplemental Reserves 
purchased.

Rate Schedule L-AS7

(Supersedes Rate Schedule L-AS7 dated October 1, 2011, through 
September 30, 2016)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Western Area Colorado Missouri Balancing Authority

TRANSMISSION LOSSES SERVICE

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    The Western Area Colorado Missouri Balancing Authority (WACM) 
provides Transmission Losses Service (Losses) to all Transmission 
Service Providers (TSPs) who market transmission inside the WACM 
Control Area (Customers). Transmission Losses are assessed for all 
real-time and prescheduled transactions on transmission facilities 
inside the WACM Control Area. For transactions (schedules) which 
involve more than one TSP inside the WACM Control Area, the loss 
obligation falls on the last TSP listed on the schedule. This prevents 
double and triple assessment of the losses for schedules which involve 
more than one TSP. The Customer is allowed the option of energy 
repayment or financial repayment. Customers must declare annually their 
preferred methodology of energy payback. Energy repayment may be either 
concurrently or seven days later, to be delivered using the same 
profile as the related transmission transaction. The Losses applicable 
to the Colorado River Storage Project (CRCM) and Loveland Area Projects 
(LAPT) TSPs will be passed directly to the CRCM and LAPT Transmission 
Customers.

Formula Rate

    The loss factor currently in effect is posted on WACM's Business 
Practices which is posted on the CRCM and LAPT Open Access Same-Time 
Information System Web sites.
    When a transmission loss energy obligation is not provided (or is 
under-

[[Page 56652]]

provided) by a Customer for a transmission transaction, the energy owed 
for Transmission Losses Service is calculated and a charge is assessed 
to the Customer based on the WACM weighted average hourly purchase 
price.
    Pricing for loss energy due 7 days later, and not received by WACM, 
will be priced at the 7-day-later-price based on the WACM weighted 
average hourly purchase price.
    There will be no financial compensation or energy return to 
Customers for over-delivery of Transmission Losses Service, as there 
should be no condition beyond the control of the Customer that results 
in overpayment.
    Customers may settle financially or with energy. The pricing for 
this service will be the WACM weighted average hourly purchase price. 
When no hourly data is available, pricing defaults will be applied in 
the following order:
    1. Weighted average purchase pricing for the day (on- and off-
peak).
    2. Weighted average purchase pricing for the current month (on- and 
off-peak).
    3. Weighted average purchase pricing for the prior month (on- and 
off-peak).
    4. Weighted average purchase pricing for the month prior to the 
prior month (and continuing until purchase pricing is located (on- and 
off-peak).

Rate Schedule L-M1

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

ROCKY MOUNTAIN REGION

Loveland Area Projects

SALES OF SURPLUS PRODUCTS

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2016, and extending through September 30, 2021, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to Loveland Area Projects (LAP) 
Marketing and is applicable to the sale of the following LAP surplus 
energy and capacity products: reserves, regulation, and frequency 
response. If any of the above LAP surplus products are available, LAP 
can make the product(s) available for sale, providing entities enter 
into separate agreement(s) with LAP Marketing which will specify the 
terms of sale(s).

Formula Rate

    The charge for each product will be determined at the time of the 
sale based on market rates, plus administrative costs. The customer 
will be responsible for acquiring transmission service necessary to 
deliver the product(s).

[FR Doc. 2016-19973 Filed 8-19-16; 8:45 am]
 BILLING CODE 6450-01-P