[Federal Register Volume 83, Number 242 (Tuesday, December 18, 2018)]
[Notices]
[Pages 64831-64832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27340]



[[Page 64831]]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project--Rate Order No. WAPA-184

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order extending firm electric and transmission 
service formula rates.

-----------------------------------------------------------------------

SUMMARY: The Deputy Secretary of Energy extends the existing Parker-
Davis Project (P-DP) formula rates and will submit them to the Federal 
Energy Regulatory Commission (FERC) for confirmation and approval on a 
final basis. The existing formula rates were scheduled to expire on 
September 30, 2018, for firm electric and transmission service under 
Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7. The Administrator 
of the Western Area Power Administration (WAPA) approved the use of the 
existing P-DP rates beyond September 30, 2018, under his authority to 
set rates for short-term sales. The short-term rates cover the period 
between October 1, 2018, and the date this rate extension goes into 
effect.

DATES: Firm electric and transmission service formula rates under Rates 
Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 will become effective on 
the first calendar day of the month following January 17, 2019, and 
will remain in effect through September 30, 2023.

FOR FURTHER INFORMATION CONTACT: Mr. Ronald E. Moulton, Senior Vice 
President and Regional Manager, or Ms. Tina Ramsey, Rates Manager, 
Desert Southwest Region, Western Area Power Administration, P.O. Box 
6457, Phoenix, AZ 85005-6457, (602) 605-2525, or [email protected].

SUPPLEMENTARY INFORMATION: The Secretary of Energy delegated: (1) the 
authority to develop power and transmission rates to WAPA's 
Administrator; (2) the authority to confirm, approve, and place such 
rates into effect on an interim basis to the Deputy Secretary of 
Energy; and (3) the authority to confirm, approve, and place into 
effect on a final basis, to remand, or to disapprove such rates to 
FERC.\1\
---------------------------------------------------------------------------

    \1\ Delegation Order No. 00-037.00B, effective November 19, 
2016.
---------------------------------------------------------------------------

    Following the procedures for public participation in the 
development of power and transmission rates,\2\ WAPA is extending the 
P-DP formula rates set forth in Rate Schedules PD-F7, PD-FT7, PD-FCT7, 
and PD-NFT7. These rate schedules contain the formulas that are used to 
calculate the charges for firm electric and transmission service on an 
annual basis.
---------------------------------------------------------------------------

    \2\ 10 CFR 903.23.
---------------------------------------------------------------------------

    Extending these formula rates through September 30, 2023, gives 
WAPA and its customers time to evaluate the potential benefits of 
combining transmission rates on Federal transmission systems located 
within WAPA's Desert Southwest Region. Combining rates may lead to more 
efficient use of the Federal transmission systems, diversify the use of 
those systems, and lower rates for customers. If, after a thorough 
evaluation, WAPA determines that combining transmission rates is 
beneficial to its customers, it will follow established procedures for 
public participation in the development of the combined rates.
    Rate Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 were previously 
approved by FERC for a 5[dash]year period through September 30, 
2018.\3\ Since the rate schedules were scheduled to expire before the 
rate extension could be placed into effect, WAPA's Administrator 
approved the use of the existing P-DP rates beyond September 30, 2018, 
under his authority to set rates for short-term sales. The short-term 
rates cover the period between October 1, 2018, and the date this rate 
extension goes into effect or March 31, 2019, whichever occurs first.
---------------------------------------------------------------------------

    \3\ FERC confirmed and approved Rate Order No. WAPA-162 Order 
Confirming and Approving Rate Schedules on a Final Basis, Docket No. 
EF14-4-000, 148 FERC ] 61,193 (Sept. 18, 2014).
---------------------------------------------------------------------------

    A notice of proposed extension of formula rates was published in 
the Federal Register on July 13, 2018 (83 FR 32664).\4\ WAPA determined 
it was not necessary to hold a public information or public comment 
forum on the proposed formula rate extension, but provided a 30-day 
consultation and comment period to give the public an opportunity to 
comment on the proposed extension. The consultation and comment period 
ended on August 13, 2018, and WAPA received no comments on the proposed 
extension.
---------------------------------------------------------------------------

    \4\ Western Area Power Administration, Notice of Proposed 
Extension of Formula Rates for Parker-Davis Project Firm Electric 
and Transmission Service, 83 FR 32664 (July 13, 2018).
---------------------------------------------------------------------------

    Following DOE's review of WAPA's proposal, I hereby approve Rate 
Order No. WAPA-184 on an interim basis, which extends existing Rate 
Schedules PD-F7, PD-FT7, PD-FCT7, and PD-NFT7 through September 30, 
2023. Rate Order No. WAPA-184 will be submitted to FERC for 
confirmation and approval on a final basis.

    Dated: December 10, 2018.
Dan Brouillette,
Deputy Secretary of Energy.

DEPARTMENT OF ENERGY

DEPUTY SECRETARY

    In the Matter of: Western Area Power Administration Extension of 
Parker-Davis Project Firm Electric and Transmission Service Formula 
Rates

Rate Order No. WAPA-184

ORDER CONFIRMING AND APPROVING AN EXTENSION OF PARKER-DAVIS PROJECT 
FIRM ELECTRIC AND TRANSMISSION SERVICE FORMULA RATES

    Section 302 of the Department of Energy (DOE) Organization Act 
(42 U.S.C. 7152) transferred to and vested in the Secretary of 
Energy the power marketing functions of the Secretary of the 
Department of the Interior and the Bureau of Reclamation under the 
Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and 
supplemented by subsequent laws, particularly section 9(c) of the 
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and other acts 
that specifically apply to the project involved.
    By Delegation Order No. 00-037.00B, effective November 19, 2016, 
the Secretary of Energy delegated (1) the authority to develop power 
and transmission rates to the Administrator of the Western Area 
Power Administration (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 the Federal Energy Regulatory Commission (FERC). This 
extension is issued under the Delegation Order and DOE rate 
extension procedures found at 10 CFR 903.23(a).

BACKGROUND

    On September 16, 2013, the Deputy Secretary of Energy approved, 
on an interim basis, Parker-Davis Project Rate Schedules PD-F7, PD-
FT7, PD-FCT7, and PD-NFT7 under Rate Order No. WAPA-162 for the 5-
year period beginning October 1, 2013, and ending September 30, 
2018. These rate schedules were confirmed, approved, and placed into 
effect on a final basis by FERC on September 18, 2014.\1\
---------------------------------------------------------------------------

    \1\ See Order Confirming and Approving Rate Schedules on a Final 
Basis, Docket No. EF14-4-000, 148 FERC ] 61,193 (Sept. 18, 2014).
---------------------------------------------------------------------------

    Following the procedures set forth in 10 CFR 903.23(a), WAPA 
filed a notice in the Federal Register on July 13, 2018, proposing 
to extend Rate Schedules PD-F7, PD-FCT7, PD-FT7, and PD-NFT7 under 
Rate Order No. WAPA-184.\2\ WAPA provided a consultation and comment 
period on the proposed formula rate extension. The consultation and 
comment period ended on August 13, 2018,

[[Page 64832]]

and WAPA received no comments on the proposed extension.
---------------------------------------------------------------------------

    \2\ Western Area Power Administration, Notice of Proposed 
Extension of Formula Rates for Parker-Davis Project Firm Electric 
and Transmission Service, 83 Fed. Reg. 32664 (July 13, 2018).
---------------------------------------------------------------------------

DISCUSSION

    On September 30, 2018, the existing Rate Schedules PD-F7, PD-
FCT7, PD-FT7, and PD-NFT7 were scheduled to expire. Under Delegation 
Order No. 00-037.00B, Section 1.5, WAPA's Administrator approved 
rates for short-term sales that were the same as those in existing 
Rate Schedules PD-F7, PD-FCT7, PD-FT7, and PD-NFT7 to cover the 
period between October 1, 2018, and the date the final rate 
extension goes into effect or March 31, 2019, whichever occurs 
first. The existing firm electric and transmission service formula 
rates provide adequate revenue to pay all annual costs, including 
interest expense, and to repay required investment according to the 
cost recovery criteria set forth in DOE Order RA 6120.2. Rate Order 
No. WAPA-184, which extends the existing rate schedules through 
September 30, 2023, ensures adequate revenue to pay all annual costs 
for the period covered by this Order.

[FR Doc. 2018-27340 Filed 12-17-18; 8:45 am]
 BILLING CODE 6450-01-P