[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62845-62849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26427]


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DEPARTMENT OF ENERGY

Bonneville Power Administration

[BPA File No.: TC-20]


Proposed Open Access Transmission Tariff; Public Hearing and 
Opportunities for Public Review and Comment

AGENCY: Bonneville Power Administration (Bonneville), Department of 
Energy (DOE).

ACTION: Notice of public hearing and opportunity to review and comment 
on proposed open access transmission tariff.

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SUMMARY: Bonneville is holding a proceeding pursuant to the Federal 
Power Act, to establish a generally applicable open access transmission 
tariff (OATT). Bonneville has designated this proceeding Docket No. TC-
20. The Bonneville Project Act of 1937 and the Pacific Northwest 
Electric Power Planning and Conservation Act provide the Bonneville 
Administrator with broad authority to enter into contracts upon such 
terms and conditions and in such manner as the Administrator may deem 
necessary. The Federal Power Act provides procedures the Administrator 
may use when establishing terms and conditions of general applicability 
for transmission service across the Federal Columbia River Transmission 
System (FCRTS). By this notice, Bonneville announces the commencement 
of a proceeding to establish a generally applicable OATT, which 
includes the terms and conditions for transmission, ancillary, and 
generator interconnection services over the FCRTS to be effective on 
October 1, 2019.

DATES: 
    Prehearing Conference: The TC-20 tariff proceeding will begin with 
a prehearing conference on Friday, December 7, 2018, in the Bonneville 
Rates Hearing Room, 1201 NE Lloyd Boulevard, Suite 200, Portland, 
Oregon 97232. The TC-20 prehearing conference will begin immediately 
following the conclusion of the prehearing conference for Bonneville's 
BP-20 Power and Transmission Rate Proceeding, which begins at 9:00 a.m.
    Intervention: Anyone intending to become a party to the TC-20 
proceeding must file a petition to intervene on Bonneville's secure 
website no later than 4:30 p.m. on Tuesday, December 11, 2018. See Part 
III in SUPPLEMENTARY INFORMATION for details on requesting access to 
the secure website and filing a petition to intervene.

ADDRESSES: Participant Comments: Written comments by non-party 
participants must be received by December 20, 2018 to be considered in 
the Hearing Officer's recommended decision and the Administrator's 
final Record of Decision (ROD). See Part III, in SUPPLEMENTARY 
INFORMATION, for details on submitting participant comments.

FOR FURTHER INFORMATION CONTACT: Ms. Heidi Helwig, DKE-7, BPA 
Communications, Bonneville Power Administration, P.O. Box 3621, 
Portland, Oregon 97208; by phone toll-free at 1-800-622-4519; or by 
email to [email protected].
    The Hearing Clerk for this proceeding can be reached via email at 
[email protected] or via telephone at (503) 243-2200.
    Please direct questions regarding Bonneville's secure site to the 
TC-20 Rate Hearing Coordinator via email at [email protected] or, if the question is time-sensitive, 
via telephone at (503) 230-3102.
    Responsible Officials: Rachel Dibble, Manager of Transmission 
Products and Rates, is the official responsible for the

[[Page 62846]]

development of Bonneville's open access transmission tariff.

SUPPLEMENTARY INFORMATION: 

Table of Contents

Part I. Introduction and Procedural Matters
Part II. Scope of TC-20 Terms and Conditions Proceeding
Part III. Public Participation in TC-20
Part IV. Summary of Open Access Transmission Tariff Proposal
Part V. Proposed OATT

Part I--Introduction and Procedural Matters

A. Introduction and Procedural Background

    In this proceeding, Bonneville proposes a generally applicable OATT 
for transmission, ancillary, and generator interconnection services 
over the FCRTS to be effective on October 1, 2019. Bonneville's organic 
statutes authorize the Administrator to enter into contracts and set 
terms and conditions for transmission services over the FCRTS as the 
Administrator deems necessary to carry out Bonneville's duties and 
obligations. See Bonneville Project Act of 1937, the Pacific Northwest 
Consumer Power Preference Act, the Federal Columbia River Transmission 
System Act, and the Pacific Northwest Electric Power Planning and 
Conservation Act (Northwest Power Act). Section 212(i)(2)(A) of the 
Federal Power Act provides procedures the Bonneville Administrator may 
use when establishing terms and conditions of general applicability for 
transmission services across the FCRTS. These procedures include 
publishing notice in the Federal Register and conducting a hearing that 
adheres to the procedural requirements of paragraphs (1) through (3) of 
Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i) (the same 
procedural requirements Bonneville uses when setting rates). In 
accordance with the Section 7(i) procedures, the Hearing Officer 
conducts one or more hearings to develop a full and complete record, 
which includes the opportunity for both oral presentation and written 
submission of views, data, questions, and arguments related to the 
proposal. Section 212(i)(2)(A) provides that upon conclusion of the 
hearing, the Hearing Officer shall, unless the Hearing Officer becomes 
unavailable to Bonneville, make a recommended decision to the 
Administrator, and the Administrator then makes a separate and final 
determination (discussed further in Part III, Section C of this 
notice).
    Bonneville has adopted rules of procedure (Rules of Procedure) that 
govern its proceedings to establish terms and conditions of 
transmission service. In a public process that concluded earlier this 
year, Bonneville updated and revised the version of the rules that had 
applied in Bonneville proceedings since 1986. The revised rules, which 
took effect September 12, 2018, will apply to the TC-20 proceeding. 
Bonneville has published the revised Rules of Procedure in the Federal 
Register, 83 FR 39993 (Aug. 13, 2018), and posted the rules on its 
website at https://www.bpa.gov/Finance/RateCases/RulesProcedure/Pages/default.aspx.

B. TC-20 Settlement Agreement

    During September and October of 2018, Bonneville engaged its 
transmission customers with long-term point-to-point and network 
integration transmission service contracts (``long-term transmission 
service agreements'') in an attempt to reach settlement of the 
generally applicable terms and conditions for transmission, ancillary, 
and generator interconnection services that Bonneville would propose to 
adopt during the TC-20 proceeding. These discussions have resulted in a 
settlement proposal that specifies the OATT that Bonneville is 
proposing to adopt in the TC-20 proceeding. Bonneville and its long-
term transmission customers have signed the TC-20 Settlement Agreement 
or indicated their intent to sign it by November 30, 2018.
    Bonneville's agreement to the TC-20 settlement is subject to 
certain contingencies. First, Bonneville's customers with long-term 
transmission service agreements must sign the TC-20 Settlement 
Agreement. Second, the TC-20 settlement is also contingent upon parties 
to the separate Power and Transmission Rate Adjustment hearing (the BP-
20 proceeding) not objecting to a proposed partial settlement with 
respect to the Transmission, Ancillary, and Control Area Services Rates 
for the FY 2020-21 BP-20 rate period.
    If the TC-20 settlement is successful, Bonneville will file a 
motion requesting the TC-20 Hearing Officer to enter the TC-20 
Settlement Agreement into the TC-20 record and issue a recommended 
decision to the Administrator which recommends adoption of the TC-20 
Settlement Agreement.
    If settlement of the OATT proposed in the TC-20 proceeding is 
unsuccessful, then Bonneville will notify all parties and decide how to 
proceed.

C. Proposed Procedural Schedule

    A proposed schedule for the proceeding is provided below and is 
based on an outcome in which Bonneville's proposed OATT is settled. A 
final schedule will be established by the Hearing Officer and may be 
amended by the Hearing Officer as needed during the proceeding. If 
settlement of the proposed OATT is unsuccessful, the Hearing Officer 
will set up a scheduling conference to amend the procedural schedule 
for the TC-20 proceeding.

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Prehearing Conference.....................  December 7, 2018
Bonneville's Initial Proposal Supporting    December 7, 2018.
 Adoption of the TC-20 Settlement
 Agreement.
Parties File Petitions to Intervene.......  December 11, 2018.
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D. Ex Parte Communications

    Section 1010.5 of the Rules of Procedure prohibits ex parte 
communications. Ex parte communications include any oral or written 
communication (1) relevant to the merits of any issue in the 
proceeding; (2) that is not on the record; and (3) with respect to 
which reasonable prior notice has not been given. The ex parte rule 
applies to communications with all Bonneville and DOE employees and 
contractors, the Hearing Officer, and the Hearing Clerk during the 
proceeding. Except as provided, any communications with persons covered 
by the rule regarding the merits of any issue in the proceeding by 
other Executive Branch agencies, Congress, existing or potential 
Bonneville customers, nonprofit or public interest groups, or any other 
non-DOE parties are prohibited. The rule explicitly excludes and does 
not prohibit communications (1) relating to matters of procedure; (2) 
otherwise authorized by law or the Rules of Procedure; (3) from or to 
the Commission; (4) which all litigants agree may be made on an ex 
parte basis; (5) in the ordinary course of business, about information 
required to be exchanged under contracts, or in information responding 
to a Freedom of Information Act request; (6) between the Hearing 
Officer and Hearing Clerk; (7) in meetings for which prior notice has 
been given; or (8) otherwise specified in Section 1010.5(b) of the 
Rules of Procedure. The ex parte rule remains in effect until the 
Administrator's Final ROD is issued.

Part II--Scope of TC-20 Terms and Conditions Proceeding

    This section provides guidance to the Hearing Officer regarding the 
scope of the TC-20 proceeding and identifies specific issues that are 
outside the

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scope. Bonneville's proposed OATT includes the terms and conditions for 
transmission, ancillary, and interconnection services over the FCRTS. 
All terms and conditions of the proposed OATT (discussed in Part V of 
this notice) are within the scope of the TC-20 proceeding. In addition 
to the items listed, any other issue that is not a term and condition 
issue is outside the scope of this proceeding.

A. Cost Estimates

    Bonneville's projections of its costs are not determined in terms 
and conditions proceedings. These projections are determined by 
Bonneville in other forums, such as the Integrated Program Review 
public process, with input from stakeholders. Bonneville's decisions 
regarding cost projections are outside the scope of the terms and 
conditions proceeding. If any re-examination of cost projections is 
necessary, such re-examination will occur outside the terms and 
conditions proceeding. Pursuant to Section 1010.4(b)(8) of the Rules of 
Procedure, the Administrator directs the Hearing Officer to exclude 
from the record all argument, testimony, or other evidence that 
challenges the appropriateness or reasonableness of the Administrator's 
decisions on costs and spending levels.

B. Rates

    Bonneville recovers its costs and expenses in rates. Bonneville is 
holding a separate Power and Transmission Rate Adjustment hearing (the 
BP-20 proceeding) regarding the proposed fiscal year 2020-2021 power, 
transmission, ancillary, and control area services rates concurrently 
with this proceeding. Bonneville is publishing a separate notice in the 
Federal Register regarding the BP-20 proceeding. Bonneville's decisions 
regarding rates are outside the scope of the terms and conditions 
proceeding. This exclusion applies to rate designs, rate methodologies, 
rate forecasts, interest expense and credit, Treasury repayment 
schedules, non-Federal debt repayment schedules, revenue financing, 
calculation of depreciation and amortization expense, forecasts of 
system replacements used in repayment studies, transmission acquisition 
expenses incurred by Power Services, generation acquisition expenses 
incurred by Transmission Services, minimum required net revenue, 
increase in, or the use of, financial reserves, and the costs of risk 
mitigation actions resulting from the expense and revenue uncertainties 
included in the risk analysis. Pursuant to Section 1010.4(b)(8) of the 
Rules of Procedure, the Administrator directs the Hearing Officer to 
exclude from the record all argument, testimony, or other evidence 
related to rates, or that challenges the appropriateness or 
reasonableness of the Administrator's decisions on rates or seeks in 
any way to propose revisions to the rates.

C. Bonneville's Tariff, Effective February 2, 2016

    Bonneville offers transmission and interconnection service pursuant 
to an open access tariff with an effective date of February 2, 2016 
(2016 Tariff). In this proceeding, Bonneville does not propose to 
change the 2016 Tariff; Bonneville proposes to establish a separate 
OATT. The 2016 Tariff is not within the scope of the TC-20 proceeding. 
Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence related to the 2016 Tariff, 
including but not limited to its terms and conditions, the ongoing 
administration of contracts offered under the 2016 Tariff, and 
Bonneville's decisions, business practices and procedures, and policies 
regarding the 2016 Tariff.

D. Bonneville's 2018-2023 Strategic Plan and Transmission Business 
Model

    Bonneville's 2018-2023 Strategic Plan and the Transmission Business 
Model describe Bonneville strategies and policies which guided the 
development of the proposed tariff; however, these strategies and 
policies are not within the scope of the TC-20 proceeding. Pursuant to 
Section 1010.4(b)(8) of the Rules of Procedure, the Administrator 
directs the Hearing Officer to exclude from the record all argument, 
testimony, or other evidence that visits or revisits the 
appropriateness or reasonableness of the Administrator's strategies and 
policies in the 2018-2023 Strategic Plan and the Transmission Business 
Model.

E. Business Practices Related to Bonneville's Proposed OATT

    Bonneville's business practices provide implementation details for 
the OATT. These business practices do not significantly affect the 
terms and conditions in the OATT. The business practices, except as 
provided within the TC-20 Settlement Agreement, are not within the 
scope of the TC-20 proceeding. The TC-20 Settlement Agreement includes 
a Business Practice Process that Bonneville will use to develop its 
transmission business practices and the Balancing Reserve Capacity 
Business Practice. Pursuant to Section 1010.4(b)(8) of the Rules of 
Procedure, the Administrator directs the Hearing Officer to exclude 
from the record all argument, testimony, or other evidence that 
proposes or challenges Bonneville's current and future business 
practices, except as provided within the TC-20 Settlement Agreement. If 
the TC-20 settlement is not successful, the Hearing Officer is directed 
to exclude from the record all argument, testimony, or other evidence 
that proposes or challenges the Business Practice Process, or other 
process Bonneville uses or will use to develop its transmission 
business practices, and the Balancing Reserve Capacity Business 
Practice. This exclusion does not apply to arguments, testimony, or 
other evidence that challenge, visit, or revisit the appropriateness of 
Bonneville decisions to consider certain requirements or practices as 
implementation details for business practices or proposals to include 
such requirements and practices in the OATT.

F. Customer-Specific Contracts and Disputes

    Contracts and contract disputes between Bonneville and its 
customers are not within the scope of the TC-20 proceeding. Pursuant to 
Section 1010.4(b)(8) of the Rules of Procedure, the Administrator 
directs the Hearing Officer to exclude from the record all argument, 
testimony, or other evidence related to contracts and contract disputes 
of Bonneville customers.

G. Oversupply Management Protocol, Attachment P of Bonneville's OATT

    The proposed OATT includes Attachment P, the Oversupply Management 
Protocol. Attachment P is approved by the Commission under Section 211A 
of the Federal Power Act and will not be revisited in this proceeding. 
Bonneville Power Admin., 154 FERC ] 61,078 (2016). Pursuant to Section 
1010.4(b)(8) of the Rules of Procedure, the Administrator directs the 
Hearing Officer to exclude from the record all argument, testimony, or 
other evidence related to the Oversupply Management Protocol, including 
but not limited to: The terms of the Oversupply Management Protocol 
(Attachment P); whether the Oversupply Management Protocol complies 
with orders of the Commission; whether Bonneville took all actions to 
avoid using the Oversupply Management Protocol, including the payment 
of negative prices to generators outside of Bonneville's balancing 
authority area; and issues concerning the rates for recovering the 
costs of the Oversupply Management Protocol.

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H. Regional Transmission Planning

    Attachment K to the 2016 OATT addresses certain transmission 
planning processes, including the coordinated regional transmission 
planning process that Bonneville has adopted as a member of 
ColumbiaGrid, a regional transmission planning organization in the 
Northwest. Representatives from Bonneville and other Northwest 
transmission entities are engaged in an ongoing effort to scope and 
form a new regional planning organization (RPO), which, if successful, 
would result in a new coordinated regional transmission planning 
process. Because of the ongoing discussions about a new RPO and the 
uncertainty about the coordinated regional transmission planning 
process that Bonneville will follow in the future, Attachment K and 
related topics are not within the scope of the TC-20 proceeding. 
Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence related to Attachment K 
transmission planning, including the formation of or participation in a 
regional transmission planning organization and a coordinated regional 
transmission planning process.

Part III--Public Participation in TC-20

A. Distinguishing Between ``Participants'' and ``Parties''

    Bonneville distinguishes between ``participants in'' and ``parties 
to'' the hearings. Separate from the formal hearing process, Bonneville 
will receive written comments, views, opinions, and information from 
participants, who may submit comments without being subject to the 
duties of, or having the privileges of, parties. Participants are not 
entitled to participate in the prehearing conference; may not cross-
examine parties' witnesses, seek discovery, or serve or be served with 
documents; and are not subject to the same procedural requirements as 
parties. Bonneville customers who will receive transmission or 
interconnection service under the terms and conditions subject to this 
proceeding, or their affiliated customer groups, may not submit 
participant comments. Members or employees of organizations that have 
intervened in the terms and conditions proceeding may submit 
participant comments as private individuals (that is, not speaking for 
their organizations), but may not use the comment procedures to address 
specific issues raised by their intervenor organizations.
    Written comments by participants will be included in the record and 
considered by the Hearing Officer and the Administrator if they are 
received by December 20, 2018. The proposed TC-20 Settlement Agreement 
and attachments are provided in Section IV of this notice. Participants 
should submit comments through Bonneville's website at www.bpa.gov/comment or in hard copy to: BPA Public Involvement, DKE-7, Bonneville 
Power Administration, P.O. Box 3621, Portland, Oregon 97208. All 
comments should contain the designation ``TC-20'' in the subject line.

B. Interventions

    Any entity or person intending to become a party in the TC-20 
proceeding must file a petition to intervene through Bonneville's 
secure website (https://www.bpa.gov/secure/Ratecase/). A first-time 
user of Bonneville's secure website must create a user account to 
submit an intervention. Returning users may request access to the TC-20 
proceeding through their existing accounts, and may submit 
interventions once their permissions have been updated. The secure 
website contains a link to the user guide, which provides step-by-step 
instructions for creating user accounts, generating filing numbers, 
submitting filings, and uploading interventions. Please contact the 
Rate Hearing Coordinator via email at [email protected] (or via telephone at (503) 230-3102) 
with any questions regarding the submission process. Interventions must 
conform to the format and content requirements set forth in 
Bonneville's Rules of Procedure Sections 1010.6 and 1010.11. 
Interventions must be uploaded to the TC-20 proceeding secure website 
by the deadline established in the procedural schedule.
    A petition to intervene must state the name and address of the 
entity or person requesting party status and the entity's or person's 
interest in the hearing. Bonneville customers and affiliated customer 
groups will be granted intervention based on petitions filed in 
conformance with Rules of Procedure. Other petitioners must explain 
their interests in sufficient detail to permit the Hearing Officer to 
determine whether the petitioners have a relevant interest in the 
hearing. The deadline for opposing a timely intervention is two 
business days after the deadline for filing petitions to intervene. 
Bonneville or any party may oppose a petition for intervention. All 
petitions will be ruled on by the Hearing Officer. Late interventions 
are strongly disfavored. Opposition to an untimely petition to 
intervene must be filed within two business days after service of the 
petition.

C. Developing the Record

    The hearing record will include, among other things, the 
transcripts of the hearing, written evidence and arguments entered into 
the record by Bonneville and the parties, written comments from 
participants, and other material accepted into the record by the 
Hearing Officer. The Hearing Officer will review the record and certify 
the record to the Administrator for final decision.
    The Hearing Officer will develop a recommended decision for the 
Administrator regarding OATT terms and conditions. The Hearing 
Officer's recommended decision must be based on the record and include 
the Hearing Officer's findings and conclusions, and the reasons or 
basis thereof, on all material issues of fact, law, or discretion 
raised by the parties and Bonneville in their initial briefs.
    The Administrator will make a final determination regarding the 
terms and conditions in Bonneville's OATT. The Final Record of Decision 
(ROD) will be made available to all parties.

Part IV--Summary of Open Access Transmission Tariff Proposal

    In this proceeding, Bonneville is proposing to establish an OATT 
containing the terms and conditions of general applicability for 
transmission, ancillary, and interconnection service over the FCRTS to 
be effective on October 1, 2019. These proposed terms and conditions 
are closely modeled after the Commission's pro forma tariff to the 
extent possible and include (1) point-to-point transmission service 
(PTP service); (2) network integration transmission service (NT 
service); (3) ancillary services; and (4) generator interconnection 
procedures and requirements. The proposed OATT assumes the TC-20 
settlement is successful. In the event the TC-20 settlement is 
unsuccessful, Bonneville will publish a revised OATT proposal 
consistent with the procedural schedule established and amended by the 
Hearing Officer.

Part V--Proposed OATT and TC-20 Settlement Agreement

    Bonneville's proposed OATT and the TC-20 Settlement Agreement are 
part of this notice and are available to view and download on 
Bonneville's website at www.bpa.gov/goto/TC20.


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    Signed on the 21st day of November, 2018.
Elliot E. Mainzer,
Administrator and Chief Executive Officer.
[FR Doc. 2018-26427 Filed 12-4-18; 8:45 am]
 BILLING CODE 6450-01-P