[Federal Register Volume 84, Number 116 (Monday, June 17, 2019)]
[Notices]
[Pages 28032-28039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12753]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Rate Schedule
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of rate order.
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SUMMARY: The Assistant Secretary has approved and placed into effect on
an interim basis Rate Order No. SWPA-73, which provides the following
Integrated System Wholesale Rates for Hydro Peaking Power (P-13A) Rate
Schedule: Rate Schedule P-13A, Wholesale Rates for Hydro Peaking Power.
FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice
President, Chief Operating Officer, Office of Corporate Operations,
(918) 595-6684, [email protected], or facsimile transmission (918)
595-6684.
SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order No. 00-037.00B,
effective November 19, 2016, and Redelegation Order No. 00-002.10D,
effective June 4, 2019, Rate Order No. SWPA-73, is approved and placed
into effect on an interim basis for the period July 1, 2019 through
September 30, 2019, pursuant to the following rate schedule: Rate
Schedule P-13A, Wholesale Rates for Hydro Peaking Power, which
supersedes the existing Rate Schedule P-13, Wholesale Rates for Hydro
Peaking Power. Southwestern Power Administration's (Southwestern)
Administrator determined that an additional section within
Southwestern's Integrated System P Rate Schedule was needed to provide
a single instrument and procedure for establishing and making limited
adjustments to its Peaking Energy Schedule Submission Time.
Established by a provision in each customer's power sales contract,
Southwestern's current requirement is that customers submit Peaking
Energy schedules to Southwestern on or before 2:00 p.m. Central
Prevailing Time (CPT) of the day preceding the day for delivery of
Peaking Energy. The existing power sales contracts permit a change to
the Peaking Energy schedule submission time provided the time change is
specified in Southwestern's in-effect Rate Schedule for Hydro Peaking
Power. Southwestern's customers requested that Southwestern consider
shifting the Peaking Energy schedule submission time later in the day,
which allows Southwestern's customers to best incorporate Federal
hydropower in their energy resource portfolios and better align with
regional energy market considerations. Southwestern performed studies
to determine if a change to the submission time would create any
operational or financial issues. At this time, there are no significant
issues identified with changing the Peaking Energy schedule submission
time from 2:00 p.m. CPT to the proposed 2:30 p.m. CPT. Southwestern's
customers have expressed support for such a change. Therefore,
Southwestern determined that it would pursue shifting its Peaking
Energy schedule submission time from 2:00 p.m. CPT to 2:30 p.m. CPT.
For customers that schedule Peaking Energy with Southwestern, the
customers' power sales contracts contain a provision for submitting
Peaking Energy schedules to Southwestern on or before 2:00 p.m. CPT of
the day preceding the day for delivery of Peaking Energy, unless
otherwise specified in Southwestern's in-effect Rate Schedule for Hydro
Peaking Power. However, the P-13 Rate Schedule had no provision for
establishing or adjusting the time for customers to submit Peaking
Energy schedules. The Administrator determined that adding the new
Section 4.2 to the P-13 Rate Schedule, together with the corresponding
definition of ``Peaking Energy Schedule Submission Time'' added as new
Section 1.9, implements the desired change in Peaking Energy schedule
submission time most efficiently. Additionally, the new Section 4.2
provides a procedure
[[Page 28033]]
by which the Administrator may adjust the Peaking Energy Schedule
Submission Time once annually to a time no earlier than 2:00 p.m. CPT
and no later than 3:00 p.m. CPT. The name of the new rate schedule will
be P-13A to reflect the fact that a new section was added.
The Southwestern 2013 PRS indicated that rates prescribed by P-13,
Wholesale Rates for Hydro Peaking Power, as approved in Docket No.
EF14-1-000, for the period October 1, 2013, through September 30, 2017
(and extended through September 30, 2019), are sufficient to meet
repayment criteria and will have no impact on the amortization or
status of repayment forecasted in the Southwestern 2013 PRS and will
not require rate changes. Revenues based on current rates remain
sufficient to meet repayment criteria.
The Southwestern Administrator has followed title 10, part 903,
subpart A of the Code of Federal Regulations (10 CFR part 903),
``Procedures for Public Participation in Power and Transmission Rate
Adjustments and Extensions,'' in connection with the rate schedule
revision. The public was advised by notice published in the Federal
Register (84 FR 8851), March 12, 2019, of the proposed rate schedule
change and of the opportunity to provide written comments for a period
of 30 days ending April 11, 2019. No comments were received.
Information regarding this rate proposal, including studies and
other supporting material, is available for public review in the
offices of Southwestern Power Administration, Williams Tower I, One
West Third Street, Tulsa, Oklahoma 74103. Following review of
Southwestern's proposal within the Department of Energy, I approve Rate
Order No. SWPA-73.
Dated: June 7, 2019.
Bruce J. Walker,
Assistant Secretary.
UNITED STATES OF AMERICA DEPARTMENT OF ENERGY
DEPUTY SECRETARY
In the matter of: Southwestern Power Administration Integrated System
Hydro Peaking Power Rate Schedule
Rate Order No. SWPA-73
ORDER CONFIRMING, APPROVING AND PLACING REVISED POWER RATE SCHEDULE IN
EFFECT ON AN INTERIM BASIS
(July 1, 2019)
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95[dash]91, the functions of the Secretary
of the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southwestern
Power Administration (Southwestern) were transferred to and vested in
the Secretary of Energy. By Delegation Order No. 00-037.00B, the
Secretary of Energy delegated to the Administrator of Southwestern the
authority to develop power and transmission rates and the Federal
Energy Regulatory Commission (FERC) was delegated the authority to
confirm and approve on a final basis or to disapprove rates developed
by the Administrator under the delegation. By Redelegation Order No.
00-002.10D authority to confirm, approve, and place in effect such
rates on an interim basis was delegated to the Assistant Secretary for
Electricity of the Department of Energy. Pursuant to that delegated
authority, the Assistant Secretary has issued this interim rate order.
BACKGROUND
In July 2013, Southwestern completed its review of the adequacy of
the current rate schedules for the Integrated System and finalized its
2013 Power Repayment Studies (PRS). The 2013 PRS indicated that the
proposed rates would meet cost recovery criteria for the Integrated
System. The Federal Energy Regulatory Commission's (FERC) confirmation
and approval of the Integrated System rate schedules, including Rate
Schedule P-13, Wholesale Rates for Hydro Peaking Power, was provided in
a FERC order issued in Docket No. EF14-1-000 on January 9, 2014,\1\ for
the period October 1, 2013, through September 30, 2017 and subsequently
extended for a two-year period effective October 1, 2017 through
September 30, 2019 by the Deputy Secretary of Energy. Based on
operations under the approved rate schedules, the Administrator
determined that adding a new section to the existing P-13 Rate
Schedule, together with the corresponding definition of ``Peaking
Energy Schedule Submission Time'' added as new Section 1.9, will
provide a single instrument and procedure for establishing and making
limited adjustments to its Peaking Energy Schedule Submission Time. A
new section 4.2 provides a shift of its Peaking Energy schedule
submission time from 2:00 p.m. Central Prevailing Time (CPT) to 2:30
p.m. CPT and a procedure by which the Administrator may adjust the
Peaking Energy Schedule Submission Time once annually to a time no
earlier than 2:00 p.m. CPT and no later than 3:00 p.m. CPT if deemed
needed.
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\1\ 146 FERC ]62,016
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The designation of the rate schedule has been revised from P-13 to
P-13A to reflect that a new section has been added.
Southwestern followed Title 10, Part 903 Subpart A, of the Code of
Federal Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions'' (Part 903) in connection
with the proposed Rate Schedule P[dash]13A. An opportunity for
customers and other interested members of the public to review and
comment on the proposed rate schedule was announced by notice published
in the Federal Register March 12, 2019, (84 FR 8851), with written
comments due by April 11, 2019.
DISCUSSION
Established by the provision in each customer's power sales
contract, Southwestern's current requirement is that customers submit
Peaking Energy schedules to Southwestern on or before 2:00 p.m. CPT of
the day preceding the day for delivery of Peaking Energy. The existing
power sales contracts permit a change to the Peaking Energy schedule
submission time provided the time change is specified in Southwestern's
in-effect Rate Schedule for Hydro Peaking Power. Southwestern's
customers requested that Southwestern consider shifting the Peaking
Energy schedule submission time later in the day, which allows
Southwestern's customers to best incorporate Federal hydropower in
their energy resource portfolios and better align with regional energy
market considerations. Southwestern performed studies to determine if a
change to the submission time would create any operational or financial
issues. At this time, there are no significant issues identified with
changing the Peaking Energy schedule submission time from 2:00 p.m. CPT
to the proposed 2:30 p.m. CPT. Southwestern's customers have expressed
support for such a change. Therefore, Southwestern determined that it
would pursue shifting its Peaking Energy schedule submission time from
2:00 p.m. CPT to 2:30 p.m. CPT.
For customers that schedule Peaking Energy with Southwestern, the
customers' power sales contracts contain a provision for submitting
Peaking Energy schedules to Southwestern on or before 2:00 p.m. CPT of
the day preceding the day for delivery of Peaking Energy, unless
otherwise specified in Southwestern's in-effect Rate Schedule for Hydro
Peaking Power. However, the in-effect P-
[[Page 28034]]
13 Rate Schedule had no provision for establishing or adjusting the
time for customers to submit Peaking Energy schedules. The
Administrator determined that adding the new Section 4.2 to the P-13
Rate Schedule, together with the corresponding definition of ``Peaking
Energy Schedule Submission Time'' added as new Section 1.9, implements
the desired change in Peaking Energy schedule submission time most
efficiently. Additionally, the new Section 4.2 provides a procedure by
which the Administrator may adjust the Peaking Energy Schedule
Submission Time once annually to a time no earlier than 2:00 p.m. CPT
and no later than 3:00 p.m. CPT. The name of the new rate schedule will
be P-13A to reflect the fact that a new section was added.
COMMENTS AND RESPONSES
No comments were received.
AVAILABILITY OF INFORMATION
Information regarding this rate schedule change is available for
public review in the offices of Southwestern Power Administration,
Williams Tower I, One West Third Street, Tulsa, Oklahoma 74103.
ADMINISTRATOR'S CERTIFICATION
The revised rate schedule will repay all costs of the Integrated
System including amortization of the power investment consistent with
the provisions of Department of Energy Order No. RA 6120.2. In
accordance with Delegation Order No. 00-037.00B, effective November 19,
2016, and Redelegation Order No. 00-002.10D, effective June 4, 2019,
and Section 5 of the Flood Control Act of 1944, the Administrator has
determined that the proposed Integrated System rate schedule is
consistent with applicable law and the lowest possible rates consistent
with sound business principles.
ENVIRONMENT
No additional evaluation of the environmental impact of the
proposed rate schedule change was conducted since no change in
anticipated revenues has been made to the currently-approved Integrated
System rates which were determined by the Southwestern National
Environmental Policy Act (NEPA) Compliance Officer to fall within the
class of actions that are categorically excluded from the requirements
of preparing either an Environmental Impact Statement or an
Environmental Assessment.
ADMINISTRATIVE PROCEDURES
The Administrative Procedure Act (5 U.S.C. 553(d)) prescribes that
the required publication or service of a substantive rule shall be made
not less than 30 days before its effective date, except (1) a
substantive rule that grants or recognizes an exemption or relieves a
restriction; (2) interpretative rules and statements of policy; or (3)
as otherwise provided by the agency for good cause found and published
with the rule. For the reasons stated in the paragraph that follows,
the Department of Energy finds good cause to waive the 30-day delay in
effective date because a 30-day delay would be unnecessary.
Specifically, in this action, Southwestern updates its submission
time for Peaking Energy schedules from 2:00 p.m. CPT to 2:30 p.m. CPT.
The change provides an extended time during which Southwestern's
customers may submit their Peaking Energy schedules to Southwestern,
thereby allowing the customers to best incorporate Federal hydropower
in their energy resource portfolios in a manner providing more value,
as the timing better aligns with regional energy market considerations.
There are no additional contractual or operational changes required by
Southwestern or its customers to effectuate the Peaking Energy schedule
submission time change provided for in P-13A. Commenters raised no
concerns during the public comment period for the P-13A rate action.
Furthermore, the P-13A rate schedule change effects no change in
anticipated revenues. It is considered a ``minor rate adjustment''
pursuant to Southwestern's regulations at 10 CFR part 903, subpart A,
and Southwestern has treated it as such in the rate actions to date. A
``minor rate adjustment'' is defined as a rate adjustment that (1) will
produce less than 1 percent change in the annual revenues of the power
system; or (2) is for a power system that has either annual sales
normally less than 100 million kilowatt hours or an installed capacity
of less than 20,000 kilowatts. 10 CFR part 903, subpart A, (as amended
in Federal Register (84 FR 5347)) provides that the effective date of
rate schedules put into effect on an interim basis by the Secretary or
his or her designee may be sooner than 30 days after the Secretary's
decision ``when appropriate to meet a contract deadline, to avoid
financial difficulties, to provide a rate for new service, or to make a
minor rate adjustment.''
ORDER
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm, approve and place in
effect on an interim basis, effective July 1, 2019, the Southwestern
Integrated System Rate Schedule P-13A which shall remain in effect on
an interim basis through September 30, 2019, or the FERC confirms and
approves the rates on a final basis.
Dated: June 7, 2019.
Bruce J. Walker,
Assistant Secretary.
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE P-13A \2\ **
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\2\ Supersedes Rate Schedule P-13.
** Extended through September 30, 2019 by approval of Rate Order
No. SWPA-72 by the Deputy Secretary of Energy.
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WHOLESALE RATES FOR HYDRO PEAKING POWER
Effective:
During the period October 1, 2013, through September 30, 2019 **,
in accordance with Federal Energy Regulatory Commission order issued
January 9, 2014, Docket No. EF14[dash]1[dash]000.
Available:
In the marketing area of Southwestern Power Administration
(Southwestern), described generally as the States of Arkansas, Kansas,
Louisiana, Missouri, Oklahoma, and Texas.
Applicable:
To wholesale Customers which have contractual rights from
Southwestern to purchase Hydro Peaking Power and associated energy
(Peaking Energy and Supplemental Peaking Energy).
Character and Conditions of Service:
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage(s), at the point(s) of delivery, and in
such quantities as are specified by contract.
1.
Definitions of Terms
1.1. Ancillary Services
The services necessary to support the transmission of capacity and
energy from resources to loads while maintaining reliable operation of
the System of Southwestern in accordance with good utility practice,
which include the following:
[[Page 28035]]
1.1.1. Scheduling, System Control, and Dispatch Service
is provided by Southwestern as Balancing Authority Area operator and is
in regard to interchange and load-match scheduling and related system
control and dispatch functions.
1.1.2. Reactive Supply and Voltage Control from Generation Sources
Service
is provided at transmission facilities in the System of Southwestern to
produce or absorb reactive power and to maintain transmission voltages
within specific limits.
1.1.3. Regulation and Frequency Response Service
is the continuous balancing of generation and interchange resources
accomplished by raising or lowering the output of on-line generation as
necessary to follow the moment-by-moment changes in load and to
maintain frequency within a Balancing Authority Area.
1.1.4. Spinning Operating Reserve Service
maintains generating units on-line, but loaded at less than maximum
output, which may be used to service load immediately when disturbance
conditions are experienced due to a sudden loss of generation or load.
1.1.5. Supplemental Operating Reserve Service
provides an additional amount of operating reserve sufficient to reduce
Area Control Error to zero within 10 minutes following loss of
generating capacity which would result from the most severe single
contingency.
1.1.6. Energy Imbalance Service
corrects for differences over a period of time between schedules and
actual hourly deliveries of energy to a load. Energy delivered or
received within the authorized bandwidth for this service is accounted
for as an inadvertent flow and is returned to the providing party by
the receiving party in accordance with standard utility practice or a
contractual arrangement between the parties.
1.2. Customer
The entity which is utilizing and/or purchasing Federal Power and
Federal Energy and services from Southwestern pursuant to this Rate
Schedule.
1.3. Demand Period
The period of time used to determine maximum integrated rates of
delivery for the purpose of power accounting which is the 60-minute
period that begins with the change of hour.
1.4. Federal Power and Energy
The power and energy provided from the System of Southwestern.
1.5. Hydro Peaking Power
The Federal Power that Southwestern sells and makes available to
the Customers through their respective Power Sales Contracts in
accordance with this Rate Schedule.
1.6. Peaking Billing Demand
The quantity equal to the Peaking Contract Demand for any month
unless otherwise provided by the Customer's Power Sales Contract.
1.7. Peaking Contract Demand
The maximum rate in kilowatts at which Southwestern is obligated to
deliver Federal Energy associated with Hydro Peaking Power as set forth
in the Customer's Power Sales Contract.
1.8. Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer in accordance
with the terms and conditions of the Customer's Power Sales Contract.
1.9. Peaking Energy Schedule Submission Time
The time by which Southwestern requires the Customer to submit
Peaking Energy schedules to Southwestern as provided for in this Rate
Schedule and in accordance with the terms and conditions of the
Customer's Power Sales Contract.
1.10. Power Sales Contract
The Customer's contract with Southwestern for the sale of Federal
Power and Federal Energy.
1.11. Supplemental Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer if determined by
Southwestern to be available and that is in addition to the quantity of
Peaking Energy purchased by the Customer in accordance with the terms
and conditions of the Customer's Power Sales Contract.
1.12. System of Southwestern
The transmission and related facilities owned by Southwestern, and/
or the generation, transmission, and related facilities owned by
others, the capacity of which, by contract, is available to and
utilized by Southwestern to satisfy its contractual obligations to the
Customer.
1.13. Uncontrollable Force
Any force which is not within the control of the party affected,
including, but not limited to failure of water supply, failure of
facilities, flood, earthquake, storm, lightning, fire, epidemic, riot,
civil disturbance, labor disturbance, sabotage, war, act of war,
terrorist acts, or restraint by court of general jurisdiction, which by
exercise of due diligence and foresight such party could not reasonably
have been expected to avoid.
2.
Wholesale Rates, Terms, and Conditions for Hydro Peaking Power, Peaking
Energy, Supplemental Peaking Energy, and Associated Services
Unless otherwise specified, this Section 2 is applicable to all
sales under the Customer's Power Sales Contract.
2.1. Hydro Peaking Power Rates, Terms, and Conditions
2.1.1. Monthly Capacity Charge for Hydro Peaking Power
$4.50 per kilowatt of Peaking Billing Demand.
2.1.2. Services Associated with Capacity Charge for Hydro Peaking Power
The capacity charge for Hydro Peaking Power includes such
transmission services as are necessary to integrate Southwestern's
resources in order to reliably deliver Hydro Peaking Power and
associated energy to the Customer. This capacity charge also includes
two Ancillary Services charges: Scheduling, System Control, and
Dispatch Service; and Reactive Supply and Voltage Control from
Generation Sources Service.
2.1.3. Secondary Transmission Service under Capacity Associated with
Hydro Peaking Power
Customers may utilize the transmission capacity associated with
Peaking Contract Demand for the transmission of non-Federal energy, on
a non-firm, as-available basis, at no additional charge for such
transmission service or associated Ancillary Services, under the
following terms and conditions:
2.1.3.1. The sum of the capacity, for any hour, which is used for
Peaking Energy, Supplemental Peaking Energy, and Secondary Transmission
Service, may not exceed the Peaking Contract Demand;
2.1.3.2. The non-Federal energy transmitted under such secondary
service is delivered to the Customer's
[[Page 28036]]
point of delivery for Hydro Peaking Power;
2.1.3.3. The Customer commits to provide Real Power Losses
associated with such deliveries of non-Federal energy; and
2.1.3.4. Sufficient transfer capability exists between the point of
receipt into the System of Southwestern of such non-Federal energy and
the Customer's point of delivery for Hydro Peaking Power for the time
period that such secondary transmission service is requested.
2.1.4. Adjustment for Reduction in Service
If, during any month, the Peaking Contract Demand associated with a
Power Sales Contract in which Southwestern has the obligation to
provide 1,200 kilowatthours of Peaking Energy per kilowatt of Peaking
Contract Demand is reduced by Southwestern for a period or periods of
not less than two consecutive hours by reason of an outage caused by
either an Uncontrollable Force or by the installation, maintenance,
replacement or malfunction of generation, transmission and/or related
facilities on the System of Southwestern, or insufficient pool levels,
the Customer's capacity charges for such month will be reduced for each
such reduction in service by an amount computed under the formula:
R = (C x K x H) / S
with the factors defined as follows:
R = The dollar amount of reduction in the monthly total capacity
charges for a particular reduction of not less than two consecutive
hours during any month, except that the total amount of any such
reduction shall not exceed the product of the Customer's capacity
charges associated with Hydro Peaking Power times the Peaking Billing
Demand.
C = The Customer's capacity charges associated with Hydro Peaking Power
for the Peaking Billing Demand for such month.
K = The reduction in kilowatts in Peaking Billing Demand for a
particular event.
H = The number of hours duration of such particular reduction.
S = The number of hours that Peaking Energy is scheduled during such
month, but not less than 60 hours times the Peaking Contract Demand.
Such reduction in charges shall fulfill Southwestern's obligation
to deliver Hydro Peaking Power and Peaking Energy.
2.2. Peaking Energy and Supplemental Peaking Energy Rates, Terms, and
Conditions
2.2.1. Peaking Energy Charge
$0.0094 per kilowatthour of Peaking Energy delivered plus the
Purchased Power Adder as defined in Section 2.2.3 of this Rate
Schedule.
2.2.2. Supplemental Energy Charge
$0.0094 per kilowatthour of Supplemental Peaking Energy delivered.
2.2.3. Purchased Power Adder
A purchased power adder of $0.0059 per kilowatthour of Peaking
Energy delivered, as adjusted by the Administrator, Southwestern, in
accordance with the procedure within this Rate Schedule.
2.2.3.1. Applicability of Purchased Power Adder
The Purchased Power Adder shall apply to sales of Peaking Energy.
The Purchased Power Adder shall not apply to sales of Supplemental
Peaking Energy or sales to any Customer which, by contract, has assumed
the obligation to supply energy to fulfill the minimum of 1,200
kilowatthours of Peaking Energy per kilowatt of Peaking Contract Demand
during a contract year (hereinafter ``Contract Support Arrangements'').
2.2.3.2. Procedure for Determining Net Purchased Power Adder Adjustment
Not more than twice annually, the Purchased Power Adder of $0.0059
(5.9 mills) per kilowatthour of Peaking Energy, as noted in this Rate
Schedule, may be adjusted by the Administrator, Southwestern, by an
amount up to a total of $0.0059 (5.9 mills) per
kilowatthour per year, as calculated by the following formula:
ADJ = (PURCH - EST + DIF) / SALES
with the factors defined as follows:
ADJ = The dollar per kilowatthour amount of the total adjustment, plus
or minus, to be applied to the net Purchased Power Adder, rounded to
the nearest $0.0001 per kilowatthour, provided that the total ADJ to be
applied in any year shall not vary from the then-effective ADJ by more
than $0.0059 per kilowatthour;
PURCH = The actual total dollar cost of Southwestern's System Direct
Purchases as accounted for in the financial records of the Southwestern
Federal Power System for the period;
EST = The estimated total dollar cost ($13,273,800 per year) of
Southwestern's System Direct Purchases used as the basis for the
Purchased Power Adder of $0.0059 per kilowatthour of Peaking Energy;
DIF = The accumulated remainder of the difference in the actual and
estimated total dollar cost of Southwestern's System Direct Purchases
since the effective date of the currently approved Purchased Power
Adder set forth in this Rate Schedule, which remainder is not projected
for recovery through the ADJ in any previous periods;
SALES = The annual Total Peaking Energy sales projected to be delivered
(2,241,300,000 KWh per year) from the System of Southwestern, which
total was used as the basis for the $0.0059 per kilowatthour Purchased
Power Adder.
2.3. Transformation Service Rates, Terms, and Conditions
2.3.1. Monthly Capacity Charge for Transformation Service
$0.46 per kilowatt will be assessed for capacity used to deliver
energy at any point of delivery at which Southwestern provides
transformation service for deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
2.3.2. Applicability of Capacity Charge for Transformation Service
Unless otherwise specified by contract, for any particular month, a
charge for transformation service will be assessed on the greater of
(1) that month's highest metered demand, or (2) the highest metered
demand recorded during the previous 11 months, at any point of
delivery. For the purpose of this Rate Schedule, the highest metered
demand will be based on all deliveries, of both Federal and non-Federal
energy, from the System of Southwestern, at such point during such
month.
2.4. Ancillary Services Rates, Terms, and Conditions
2.4.1. Capacity Charges for Ancillary Services
2.4.1.1. Regulation and Frequency Response Service
Monthly rate of $0.07 per kilowatt of Peaking Billing Demand plus
the Regulation Purchased Adder as defined in Section 2.4.5 of this Rate
Schedule.
2.4.1.2. Spinning Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
[[Page 28037]]
2.4.1.3. Supplemental Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.4.1.4. Energy Imbalance Service
$0.0 per kilowatt for all reservation periods.
2.4.2. Availability of Ancillary Services
Regulation and Frequency Response Service and Energy Imbalance
Service are available only for deliveries of power and energy to load
within Southwestern's Balancing Authority Area. Spinning Operating
Reserve Service and Supplemental Operating Reserve Service are
available only for deliveries of non-Federal power and energy generated
by resources located within Southwestern's Balancing Authority Area and
for deliveries of all Hydro Peaking Power and associated energy from
and within Southwestern's Balancing Authority Area. Where available,
such Ancillary Services must be taken from Southwestern; unless,
arrangements are made in accordance with Section 2.4.4 of this Rate
Schedule.
2.4.3. Applicability of Charges for Ancillary Services
For any month, the charges for Ancillary Services for deliveries of
Hydro Peaking Power shall be based on the Peaking Billing Demand.
The daily charge for Spinning Operating Reserve Service and
Supplemental Operating Reserve Service for non-Federal generation
inside Southwestern's Balancing Authority Area shall be applied to the
greater of Southwestern's previous day's estimate of the peak, or the
actual peak, in kilowatts, of the internal non-Federal generation.
2.4.4. Provision of Ancillary Services by Others
Customers for which Ancillary Services are made available as
specified above, must inform Southwestern by written notice of the
Ancillary Services which they do not intend to take and purchase from
Southwestern, and of their election to provide all or part of such
Ancillary Services from their own resources or from a third party.
Subject to Southwestern's approval of the ability of such resources
or third parties to meet Southwestern's technical and operational
requirements for provision of such Ancillary Services, the Customer may
change the Ancillary Services which it takes from Southwestern and/or
from other sources at the beginning of any month upon the greater of 60
days notice or upon completion of any necessary equipment modifications
necessary to accommodate such change; Provided, That, if the Customer
chooses not to take Regulation and Frequency Response Service, which
includes the associated Regulation Purchased Adder, the Customer must
pursue these services from a different host Balancing Authority;
thereby moving all metered loads and resources from Southwestern's
Balancing Authority Area to the Balancing Authority Area of the new
host Balancing Authority. Until such time as that meter reconfiguration
is accomplished, the Customer will be charged for the Regulation and
Frequency Response Service and applicable Adder then in effect. The
Customer must notify Southwestern by July 1 of this choice, to be
effective the subsequent calendar year.
2.4.5. Regulation Purchased Adder
Southwestern has determined the amount of energy used from storage
to provide Regulation and Frequency Response Service in order to meet
Southwestern's Balancing Authority Area requirements. The replacement
value of such energy used shall be recovered through the Regulation
Purchased Adder. The Regulation Purchased Adder during the time period
of January 1 through December 31 of the current calendar year is based
on the average annual use of energy from storage \1\ for Regulation and
Frequency Response Service and Southwestern's estimated purchased power
price for the corresponding year from the most currently approved Power
Repayment Studies.
The Regulation Purchased Adder will be phased in over a period of
four (4) years as follows:
---------------------------------------------------------------------------
\1\ The average annual use of energy from storage for Regulation
and Frequency Response Service is based on Southwestern studies.
------------------------------------------------------------------------
Regulation Purchased Adder for the
Year incremental replacement value of energy
used from storage
------------------------------------------------------------------------
2014.......................... \1/4\ of the average annual use of
energy from storage x 2014 Purchased
Power price.
2015.......................... \1/2\ of the average annual use of
energy from storage x 2015 Purchased
Power price.
2016.......................... \3/4\ of the average annual use of
energy from storage x 2016 Purchased
Power price.
2017 and thereafter........... The total average annual use of energy
from storage x the applicable Purchased
Power price.
------------------------------------------------------------------------
2.4.5.1. Applicability of Regulation Purchased Adder
The replacement value of the estimated annual use of energy from
storage for Regulation and Frequency Response Service shall be
recovered by Customers located within Southwestern's Balancing
Authority Area on a non-coincident peak ratio share basis, divided into
twelve equal monthly payments, in accordance with the formula in
Section 2.4.5.2.
If the Regulation Purchased Adder is determined and applied under
Southwestern's Rate Schedule NFTS-13, then it shall not be applied
here.
2.4.5.2. Procedure for Determining Regulation Purchased Adder
Unless otherwise specified by contract, the Regulation Purchased
Adder for an individual Customer shall be based on the following
formula rate, calculated to include the replacement value of the
estimated annual use of energy from storage by Southwestern for
Regulation and Frequency Response Service.
RPA = The Regulation Purchased Adder for an individual Customer per
month, which is as follows:
[(L Customer / L Total) x RP
Total ] / 12
with the factors defined as follows:
L Customer = The sum in MW of the following three factors:
(1) The Customer's highest metered load plus generation used to
serve the Customer's load that is accounted for through a reduction in
the Customer's metered load (referred to as `generation behind the
meter') during the previous calendar year, and
(2) The Customer's highest rate of Scheduled Exports \2\ during the
previous calendar year, and
(3) The Customer's highest rate of Scheduled Imports \2\ during the
previous calendar year.
---------------------------------------------------------------------------
\2\ Scheduled Exports and Scheduled Imports are transactions,
such as sales and purchases respectively, which are in addition to a
Customer's metered load that contribute to Southwestern's Balancing
Authority Area need for regulation.
---------------------------------------------------------------------------
[[Page 28038]]
L Total = The sum of all L Customer factors for
all Customers that were inside Southwestern's Balancing Authority Area
at the beginning of the previous calendar year in MW.
RP Total = The ``net'' cost in dollars and cents based on
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies
multiplied by the average annual use of energy from storage, as
provided for in the table in Section 2.4.5, to support Southwestern's
ability to regulate within its Balancing Authority Area. The ``net''
cost in dollars and cents shall be adjusted by subtracting the product
of the quantity of such average annual use of energy from storage in
MWh and Southwestern's highest rate in dollars per MWh for Supplemental
Peaking Energy during the previous calendar year.
For Customers that have aggregated their load, resources, and
scheduling into a single node by contract within Southwestern's
Balancing Authority Area, the individual Customer's respective
Regulation Purchased Adder shall be that Customer's ratio share of the
Regulation Purchased Adder established for the node. Such ratio share
shall be determined for the Customer on a non-coincident basis and
shall be calculated for the Customer from their highest metered load
plus generation behind the meter.
2.4.6. Energy Imbalance Service Limitations
Energy Imbalance Service primarily applies to deliveries of power
and energy which are required to satisfy a Customer's load. As Hydro
Peaking Power and associated energy are limited by contract, the Energy
Imbalance Service bandwidth specified for Non-Federal Transmission
Service does not apply to deliveries of Hydro Peaking Power, and
therefore Energy Imbalance Service is not charged on such deliveries.
Customers who consume a capacity of Hydro Peaking Power greater than
their Peaking Contract Demand may be subject to a Capacity Overrun
Penalty.
3. Hydro Peaking Power Penalties, Terms, and Conditions
3.1 Capacity Overrun Penalty
3.1.1. Penalty Charge for Capacity Overrun
For each hour during which Hydro Peaking Power was provided at a
rate greater than that to which the Customer is entitled, the Customer
will be charged a Capacity Overrun Penalty at the following rates:
------------------------------------------------------------------------
Rate per
Months associated with charge kilowatt
------------------------------------------------------------------------
March, April, May, October, November, December.......... $0.15
January, February, June, July, August, September........ 0.30
------------------------------------------------------------------------
3.1.2. Applicability of Capacity Overrun Penalty
Customers which have loads within Southwestern's Balancing
Authority Area are obligated by contract to provide resources, over and
above the Hydro Peaking Power and associated energy purchased from
Southwestern, sufficient to meet their loads. A Capacity Overrun
Penalty shall be applied only when the formulas provided in Customers'
respective Power Sales Contracts indicate an overrun on Hydro Peaking
Power, and investigation determines that all resources, both firm and
non-firm, which were available at the time of the apparent overrun were
insufficient to meet the Customer's load.
3.2. Energy Overrun Penalty
3.2.1. Penalty Charge for Energy Overrun
$0.1034 per kilowatthour for each kilowatthour of overrun.
3.2.2. Applicability of Energy Overrun Penalty
By contract, the Customer is subject to limitations on the maximum
amounts of Peaking Energy which may be scheduled under the Customer's
Power Sales Contract. When the Customer schedules an amount in excess
of such maximum amounts, such Customer is subject to the Energy Overrun
Penalty.
3.3. Power Factor Penalty
3.3.1. Requirements Related to Power Factor
Any Customer served from facilities owned by or available by
contract to Southwestern will be required to maintain a power factor of
not less than 95 percent and will be subject to the following
provisions.
3.3.2. Determination of Power Factor
The power factor will be determined for all Demand Periods and
shall be calculated under the formula:
[GRAPHIC] [TIFF OMITTED] TN17JN19.005
with the factors defined as follows:
PF = The power factor for any Demand Period of the month.
kWh = The total quantity of energy which is delivered during such
Demand Period to the point of delivery or interconnection in accordance
with Section 3.3.4.
rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs)
delivered during such Demand Period to the point of delivery or
interconnection in accordance with Section 3.3.4.
3.3.3. Penalty Charge for Power Factor
The Customer shall be assessed a penalty for all Demand Periods of
a month where the power factor is less than 95 percent lagging. For any
Demand Period during a particular month such penalty shall be in
accordance with the following formula:
C = D x (0.95-LPF) x $0.10
with the factors defined as follows:
C = The charge in dollars to be assessed for any particular Demand
Period of such month that the determination of power factor ``PF'' is
calculated to be less than 95 percent lagging.
D = The Customer's demand in kilowatts at the point of delivery for
such Demand Period in which a low power factor was calculated.
LPF = The lagging power factor, if any, determined by the formula
``PF'' for such Demand Period.
If C is negative, then C = zero (0).
3.3.4. Applicability of Power Factor Penalty
The Power Factor Penalty is applicable to radial interconnections
with the System of Southwestern. The total Power Factor Penalty for any
month shall be the sum of all charges ``C'' for all Demand Periods of
such month. No penalty is assessed for leading power factor.
Southwestern, in its sole judgment and at its sole option, may
determine whether power factor calculations should be applied to (i) a
single physical point of delivery, (ii) a combination of physical
points of delivery where a Customer has a single, electrically
integrated load, (iii) or interconnections. The general criteria
[[Page 28039]]
for such decision shall be that, given the configuration of the
Customer's and Southwestern's systems, Southwestern will determine, in
its sole judgment and at its sole option, whether the power factor
calculation more accurately assesses the detrimental impact on
Southwestern's system when the above formula is calculated for a single
physical point of delivery, a combination of physical points of
delivery, or for an interconnection as specified by an Interconnection
Agreement.
Southwestern, at its sole option, may reduce or waive Power Factor
Penalties when, in Southwestern's sole judgment, low power factor
conditions were not detrimental to the System of Southwestern due to
particular loading and voltage conditions at the time the power factor
dropped below 95 percent lagging.
4.
Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions
4.1. Real Power Losses
Customers are required to self-provide all Real Power Losses for
non-Federal energy transmitted by Southwestern on behalf of such
Customers under the provisions detailed below.
Real Power Losses are computed as four (4) percent of the total
amount of non-Federal energy transmitted by Southwestern. The
Customer's monthly Real Power Losses are computed each month on a
megawatthour basis as follows:
ML = 0.04 x NFE
with the factors defined as follows:
ML = The total monthly loss energy, rounded to the nearest
megawatthour, to be scheduled by a Customer for receipt by Southwestern
for Real Power Losses associated with non-Federal energy transmitted on
behalf of such Customer; and
NFE = The amount of non-Federal energy that was transmitted by
Southwestern on behalf of a Customer during a particular month.
The Customer must schedule or cause to be scheduled to
Southwestern, Real Power Losses for which it is responsible subject to
the following conditions:
4.1.1. The Customer shall schedule and deliver Real Power Losses
back to Southwestern during the second month after they were incurred
by Southwestern in the transmission of the Customer's non-Federal power
and energy over the System of Southwestern unless such Customer has
accounted for Real Power Losses as part of a metering arrangement with
Southwestern.
4.1.2. On or before the twentieth day of each month, Southwestern
shall determine the amount of non-Federal loss energy it provided on
behalf of the Customer during the previous month and provide a written
schedule to the Customer setting forth hour-by-hour the quantities of
non-Federal energy to be delivered to Southwestern as losses during the
next month.
4.1.3. Real Power Losses not delivered to Southwestern by the
Customer, according to the schedule provided, during the month in which
such losses are due shall be billed by Southwestern to the Customer to
adjust the end-of-month loss energy balance to zero (0) megawatthours
and the Customer shall be obliged to purchase such energy at the
following rates:
------------------------------------------------------------------------
Rate per
Months associated with charge kilowatthour
------------------------------------------------------------------------
March, April, May, October, November, December.......... $0.15
January, February, June, July, August, September........ 0.30
------------------------------------------------------------------------
4.1.4. Real Power Losses delivered to Southwestern by the Customer
in excess of the losses due during the month shall be purchased by
Southwestern from the Customer at a rate per megawatthour equal to
Southwestern's rate per megawatthour for Supplemental Peaking Energy,
as set forth in Southwestern's then-effective Rate Schedule for Hydro
Peaking Power to adjust such hourly end-of-month loss energy balance to
zero (0) megawatthours.
4.2. Peaking Energy Schedule Submission Time
Southwestern's Peaking Energy Schedule Submission Time is on or
before 2:30 p.m. Central Prevailing Time (CPT), as adjusted by the
Administrator, Southwestern, in accordance with Section 4.2.2 in this
Rate Schedule, of the day preceding the day for the delivery of Peaking
Energy. The Peaking Energy Schedule Submission Time supersedes the
Peaking Energy schedule submission time provided in the Customer's
Power Sales Contract, pursuant to Section 4.2.1 of this Rate Schedule.
4.2.1 Applicability of Peaking Energy Schedule Submission Time
The Peaking Energy Schedule Submission Time shall apply to the
scheduling of Peaking Energy. The Peaking Energy Schedule Submission
Time shall not apply to the scheduling of Supplemental Peaking Energy
or to Contract Support Arrangements.
4.2.2 Procedure for Adjusting the Peaking Energy Schedule Submission
Time
Not more than once annually, the Peaking Energy Schedule Submission
Time of 2:30 p.m. CPT, as noted in Section 4.2 of this Rate Schedule,
may be adjusted by the Administrator, Southwestern, to a time no
earlier than 2:00 p.m. CPT and no later than 3:00 p.m. CPT.
4.2.2.1 Determination of Need to Adjust the Peaking Energy Schedule
Submission Time
The Administrator, Southwestern, will make a determination on the
need to adjust the Peaking Energy Schedule Submission Time based on
Southwestern's studies involving financial analysis, regional energy
market conditions, and/or operational considerations.
4.2.2.2 Notification of Peaking Energy Schedule Submission Time
Adjustment
The Administrator, Southwestern, will notify customers of the
determination to adjust the Peaking Energy Schedule Submission Time in
writing no later than 30 calendar days prior to the effective date of
the Peaking Energy Schedule Submission Time adjustment.
[FR Doc. 2019-12753 Filed 6-14-19; 8:45 am]
BILLING CODE 6450-01-P