[Federal Register Volume 81, Number 211 (Tuesday, November 1, 2016)]
[Notices]
[Pages 75814-75815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26370]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Power Rates

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Proposed Change to Southwestern Power Administration 
Integrated System Non-Federal Transmission Service Rate Schedule and 
Opportunity for Public Review and Comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has determined that an additional Section outlining a 
new methodology within Southwestern's existing Integrated System Non-
Federal Transmission Service (NFTS-13) Rate Schedule is necessary to 
better align Southwestern's rate schedule with standard practices 
utilized by the Southwest Power Pool, Inc. (SPP) Regional Transmission 
Organization. A new section 2.3.6 is proposed that establishes a 
procedure for determining an Annual Revenue Requirement (ARR) for 
customers that choose to contract for Network Integration Transmission 
Service (NITS) on Southwestern's transmission system pursuant to the 
SPP Open Access Transmission Tariff (OATT).
    The proposed Section 2.3.6 does not change Southwestern's NFTS ARR, 
as determined in its 2013 Integrated System Power Repayment Studies 
(2013 PRS), but rather replaces the current stated-rate for SPP NITS 
with a revenue-requirement based methodology that includes determining 
the SPP NITS ARR portion of Southwestern's NFTS ARR. Furthermore, the 
proposed Section 2.3.6 affects only those customers that choose to 
contract for SPP NITS on Southwestern's transmission system under the 
SPP OATT.
    Southwestern has determined that Section 2.3.6 will provide a more 
appropriate methodology for revenue recovery from NFTS customers that 
choose to contract for SPP NITS on Southwestern's transmission system 
under the SPP OATT.

DATES: The consultation and comment period will begin on the date of 
publication of this Federal Register notice and will end on December 1, 
2016. If requested, a combined Public Information and Comment Forum 
(Forum) will be held at 9:00 a.m. on November 17, 2016. If requested, 
persons desiring the Forum to be held should indicate in writing to Mr. 
Marshall Boyken, Senior Vice President and Chief Operating Officer (see 
FOR FURTHER INFORMATION CONTACT) by November 8, 2016, their request for 
such Forum. If no request is received, no such Forum will be held. 
Persons interested in speaking at the Forum, if held, should submit a 
request to Mr. Marshall Boyken, Senior Vice President and Chief 
Operating Officer (see FOR FURTHER INFORMATION CONTACT) by November 10, 
2016, so that a list of Forum participants can be developed. All 
comments on the proposed Section 2.3.6 addition to Southwestern's NFTS 
Rate Schedule, whether provided to Southwestern in written or 
electronic copy (MS Word format), are due on or before December 1, 
2016.

ADDRESSES: If requested, the Forum will be held in Southwestern's 
offices, Room 1460, Williams Center Tower I, One West Third Street, 
Tulsa, Oklahoma 74103. Comments should be submitted to Mr. Marshall 
Boyken, Senior Vice President and Chief Operating Officer (see FOR 
FURTHER INFORMATION CONTACT).

FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice 
President, Chief Operating Officer, Office of Corporate Operations, 
Southwestern Power Administration, U.S. Department of Energy, One West 
Third Street, Tulsa, Oklahoma 74103, (918) 595-6646, 
[email protected], or facsimile transmission (918) 595-6646.

SUPPLEMENTARY INFORMATION: Originally established by Secretarial Order 
No. 1865 dated August 31, 1943, Southwestern is an agency within the 
U.S. Department of Energy created by the Department of Energy 
Organization Act, Public Law 95-91, dated August 4, 1977. Guidelines 
for preparation of power repayment studies are included in DOE Order 
No. RA 6120.2 entitled Power Marketing Administration Financial 
Reporting. Procedures for public participation in power and 
transmission rate adjustments of the Power Marketing Administrations 
are found at title 10, part 903, subpart A of the Code of Federal 
Regulations (10 CFR part 903). Procedures for the confirmation and 
approval of rates for the Federal Power Marketing Administrations are 
found at title 18, part 300, subpart L of the Code of Federal 
Regulations (18 CFR part 300).
    Southwestern markets power from 24 multi-purpose reservoir projects 
with hydroelectric power facilities constructed and operated by the 
U.S. Army Corps of Engineers (Corps). These projects are located in the 
states of Arkansas, Missouri, Oklahoma, and Texas. Southwestern's 
marketing area includes these states plus Kansas and Louisiana. The 
costs associated with the hydropower facilities of 22 of the 24 
projects are repaid via revenues received under the Integrated System 
rates, as are those of Southwestern's transmission facilities, which 
consist of 1,380 miles of high-voltage transmission lines, 26 
substations, and 46 communication sites. Costs associated with the Sam 
Rayburn and Robert D. Willis Dams, two Corps projects that are isolated 
hydraulically, electrically, and financially from the Integrated 
System, are repaid under separate rate schedules and are not addressed 
in this notice.

Rate Schedule Change

    The current NFTS-13 Rate Schedule includes a stated rate for NITS 
that is calculated by dividing Southwestern's monthly revenue 
requirement, derived from Southwestern's NFTS ARR identified within the 
2013 PRS, by the net transmission capacity available for NITS. 
Modifying Southwestern's rate schedule to include an ARR for SPP NITS, 
rather than applying a stated rate, is necessary to better align with 
standard practices utilized by SPP. Therefore, in place of applying the 
NITS stated rate for SPP NITS on Southwestern's transmission system, 
the proposed Section 2.3.6 includes a procedure for determining (and 
updating) an SPP NITS ARR, as a portion of Southwestern's NFTS ARR, 
based on the amount of revenue assumed to be recovered on an annual 
basis from NITS customers in each approved PRS. If additional customers 
choose to contract for SPP NITS on Southwestern's transmission system, 
the proposed Section 2.3.6 methodology updates the SPP NITS ARR and 
eliminates the need for Southwestern to revise its NFTS Rate Schedule 
each time additional customers contract for SPP NITS on Southwestern's 
transmission system.
    The title of the NFTS-13 Rate Schedule was changed to NFTS-13A to 
reflect the addition of Section 2.3.6. A redlined version of the NFTS-
13 Rate Schedule, which shows the revision proposed by rate schedule 
NFTS-13A, will be made available upon request. To request a copy, 
please contact Mr. Marshall Boyken, Senior Vice President and Chief 
Operating Officer, (see FOR FURTHER INFORMATION CONTACT).

[[Page 75815]]

    Following review and consideration of written comments, the 
Administrator will determine whether to finalize and submit the 
proposed NFTS-13A Rate Schedule to the Deputy Secretary of Energy for 
confirmation and approval on an interim basis, and subsequently to the 
Federal Energy Regulatory Commission (FERC) for confirmation and 
approval on a final basis. The FERC will allow the public an 
opportunity to provide written comments on the proposed rate schedule 
change before making a final decision.

    Dated: October 26, 2016.
Scott Carpenter,
Administrator.
[FR Doc. 2016-26370 Filed 10-31-16; 8:45 am]
 BILLING CODE 6450-01-P