[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]]
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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.
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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\
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\1\ Delegation Order No. 00-037.00B, effective November 19,
2016.
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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.
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\2\ 10 CFR 903.23.
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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.
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\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).
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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.
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\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).
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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\
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\1\ See Order Confirming and Approving Rate Schedules on a Final
Basis, Docket No. EF14-4-000, 148 FERC ] 61,193 (Sept. 18, 2014).
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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.
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\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).
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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