[Federal Register Volume 84, Number 124 (Thursday, June 27, 2019)]
[Notices]
[Pages 30712-30714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13714]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Valley Project, California-Oregon Transmission Project, 
Pacific Alternating Current Intertie, and Third-Party Transmission 
Service--Rate Order No. WAPA-185

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order extending Sierra Nevada Region's power, 
transmission, and ancillary services formula rates.

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SUMMARY: The Under Secretary of Energy confirms, approves, and places 
into effect, on an interim basis, the extension of the existing Central 
Valley Project power, transmission, and ancillary service; California-
Oregon Transmission Project transmission; Pacific Alternating Current 
Intertie transmission; and third-party transmission formula rates. 
Western Area Power Administration (WAPA) will submit them to the 
Federal Energy Regulatory Commission (FERC) for confirmation and 
approval on a final basis. The existing formula rates are set to expire 
on September 30, 2019. This rate extension makes no changes to the 
existing formula rates and extends them through September 30, 2024.

DATES: The formula rates will be placed into effect on an interim basis 
on October 1, 2019.

[[Page 30713]]


FOR FURTHER INFORMATION CONTACT: Ms. Sonja Anderson, Regional Manager, 
Sierra Nevada Region, Western Area Power Administration, 114 Parkshore 
Drive, Folsom, CA 95630-4710, (916) 353-4418, e-mail: 
[email protected]; or Ms. Autumn Wolfe, Rates Manager, Sierra Nevada 
Region, (916) 353-4686, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: 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 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, or to remand or disapprove such rates, to 
FERC. In Delegation Order No. 00-002.00Q, effective November 1, 2018, 
the Secretary of Energy also delegated to the Under Secretary of Energy 
the authority to confirm, approve, and place into effect on an interim 
basis power and transmission rates for WAPA. By Redelegation Order 00-
002.10D, effective June 4, 2019, the Under Secretary of Energy further 
delegated the authority to confirm, approve, and place such rates into 
effect on an interim basis to the Assistant Secretary for Electricity. 
This extension is issued in accordance with the Delegation Order and 
DOE's rate extension procedures at 10 CFR 903.23(a).\1\
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    \1\ 84 FR 5347 (Feb. 21, 2019).
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    On July 14, 2016, FERC approved Rate Order No. WAPA-173: WAPA's 
rates for the Central Valley Project power, transmission, and ancillary 
service; and transmission service for California-Oregon Transmission 
Project, Pacific Alternating Current Intertie, and Third-Party 
Transmission.\2\ FERC approved the rates for three years from October 
1, 2016, through September 30, 2019. Under the approved formula rates, 
WAPA recalculates the charges and revenue requirements each year based 
on updated financial and operational data. The existing formula rates 
provide sufficient revenue to repay all annual expenses, including 
interest expense, and repay capital investments within the allowable 
periods; this ensures repayment within the cost recovery criteria set 
forth in DOE Order RA 6120.2. Given the pending expiration of these 
rates, WAPA proposed to extend them under Rate Order No. 185.\3\ The 
rate extension makes no change to the existing formula rates and 
extends the rates through September 30, 2024.
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    \2\ Order Confirming and Approving Rate Schedule on Final Basis, 
FERC Docket No. EF16-3-000, 156 FERC ] 62,039 (2016). FERC 
originally approved the rate on December 2, 2011. Order Confirming 
and Approving Rate Schedule on a Final Basis, FERC Docket No. EF11-
9-000, 137 FERC ] 62,201 (2011).
    \3\ 80 FR 51556 (Aug. 25, 2015).
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    Following DOE's review of WAPA's proposal,\4\ I hereby confirm, 
approve, and place into effect Rate Order No. WAPA-185 on an interim 
basis. This extends, without adjustment, the existing rate schedules 
listed below, through September 30, 2024:
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    \4\ 83 FR 63857 (Dec. 12, 2018).

 CV-F13 (Base Resource and First Preference Power),
 CPP-2 (Custom Product Power),
 CV-T3 (Firm and Non-Firm Point-to-Point Transmission Service),
 CV-NWT5 (Network Integration Transmission Service),
 COTP-T3 (Firm and Non-Firm Point-to-Point Transmission 
Service),
 PACI-T3 (Firm and Non-Firm Point-to-Point Transmission 
Service),
 CV-TPT7 (Third-Party Transmission Service),
 CV-UUP1 (Unreserved Use Penalties),
 CV-RFS4 (Regulation and Frequency Response),
 CV-SPR4 (Spinning Reserves),
 CV-SUR4 (Supplemental Reserves),
 CV-EID4 (Energy Imbalance Service), and
 CV-GID1 (Generator Imbalance).

WAPA will submit Rate Order No. WAPA-185 and the extended rate 
schedules to FERC for confirmation and approval on a final basis.

    Dated: June 21, 2019.
Bruce J. Walker,
Assistant Secretary.

DEPARTMENT OF ENERGY

UNDER SECRETARY

    In the Matter of: Western Area Power Administration Extension 
for the Central Valley Project, California-Oregon Transmission 
Project, Pacific Alternating Current Intertie, and Third-Party 
Transmission Service Formula Rates.

Rate Order No. WAPA-185

ORDER CONFIRMING, APPROVING, AND PLACING THE FORMULA RATES FOR THE 
CENTRAL VALLEY PROJECT, CALIFORNIA-OREGON TRANSMISSION PROJECT, PACIFIC 
ALTERNATING CURRENT INTERTIE, AND THIRD-PARTY TRANSMISSION SERVICE 
FORMULA RATES INTO EFFECT ON AN INTERIM BASIS

    This Rate Order extends formula rates. The extension is undertaken 
pursuant to section 302 of the Department of Energy (DOE) Organization 
Act (42 U.S.C. 7152), which transferred to, and vested in, the 
Secretary of Energy the power marketing functions of the Secretary 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 
into effect such rates 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, or to remand or disapprove such rates, to the 
Federal Energy Regulatory Commission (FERC). By Delegation Order No. 
00-002.00Q, effective November 1, 2018, the Secretary of Energy also 
delegated the authority to confirm, approve, and place such rates into 
effect on an interim basis to the Under Secretary of Energy. By 
Redelegation Order No. 00-002.10D, effective June 4, 2019, the Under 
Secretary of Energy further delegated the authority to confirm, 
approve, and place such rates into effect on an interim basis to the 
Assistant Secretary for Electricity. This Rate Order's extension is 
issued under the latter Delegation Order and DOE's rate extension 
procedures codified at 10 CFR 903.23(a).\1\
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    \1\ 84 FR 5347 (Feb. 21, 2019).
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BACKGROUND

    On July 14, 2016, FERC confirmed, approved, and placed into effect 
Rate Order No. WAPA-173,\2\ which extended the rates listed below for 
three years from October 1, 2016, through September 30, 2019:
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    \2\ Order Confirming and Approving Rate Schedule on Final Basis, 
FERC Docket No. EF16-3-000, 156 FERC ] 62,039 (2016). FERC 
originally approved the rate on December 2, 2011. Order Confirming 
and Approving Rate Schedule on a Final Basis, FERC Docket No. EF11-
9-000, 137 FERC ] 62,201 (2011).

 CV-F13 (Base Resource and First Preference Power),
 CPP-2 (Custom Product Power),
 CV-T3 (Firm and Non-Firm Point-to-Point Transmission Service),
 CV-NWT5 (Network Integration Transmission Service),
 COTP-T3 (Firm and Non-Firm Point-to-Point Transmission 
Service),

[[Page 30714]]

 PACI-T3 (Firm and Non-Firm Point-to-Point Transmission 
Service),
 CV-TPT7 (Third-Party Transmission Service),
 CV-UUP1 (Unreserved Use Penalties),
 CV-RFS4 (Regulation and Frequency Response),
 CV-SPR4 (Spinning Reserves),
 CV-SUR4 (Supplemental Reserves),
 CV-EID4 (Energy Imbalance Service), and
 CV-GID1 (Generator Imbalance).

These rates apply to power, transmission, and ancillary services for 
the Central Valley Project, and transmission service for the Pacific AC 
Intertie, California-Oregon Transmission Project, and third party 
transmission. On December 12, 2018, pursuant to 10 CFR 903.23(a), WAPA 
filed a notice in the Federal Register proposing to extend, without 
adjustment, the above rates as Rate Order No. WAPA-185.\3\ WAPA 
determined it was not necessary to hold public information or public 
comment forums on the proposed formula rate extension, but provided a 
30-day consultation and comment period. The consultation and comment 
period ended on January 11, 2019, and WAPA received no comments on the 
proposed formula rate extension.
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    \3\ 83 FR 63857 (Dec. 12, 2018).
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DISCUSSION

    The power, transmission, and ancillary service formula rates, 
approved under Rate Order No. WAPA-173, expire on September 30, 2019. 
WAPA recalculates the charges under the existing formula rate 
methodologies at least annually, which provides adequate revenue to 
recover annual expenses, including interest expense, and repay capital 
investments within allowable time. This ensures repayment within the 
cost recovery criteria set forth in DOE Order RA 6120.2.
    Rate Order No. WAPA-185 extends, without adjustment, the existing 
formula rates listed above, through September 30, 2024, thereby 
continuing to ensure project repayment within the cost recovery 
criteria.

ORDER

    In view of the above and under the authority delegated to me, I 
hereby confirm, approve, and place into effect, on an interim basis, 
Rate Order No. WAPA-185, which extends the existing power, 
transmission, and ancillary services formula rates: Rate Schedules CV-
F13, CPP-2, CV-T3, CV-NWT5, COTP-T3, PACI-T3, CV-TPT7, CV-UUP1, CV-
SPR4, CV-SUR4, CV-RFS4, CV-EID4, and CV-GID1, through September 30, 
2024. The rates will remain in effect on an interim basis until: (1) 
FERC confirms and approves this extension on a final basis; (2) 
subsequent rates are confirmed and approved; or (3) such rates are 
superseded.

Dated: June 21, 2019.

Bruce J. Walker,

Assistant Secretary.

[FR Doc. 2019-13714 Filed 6-26-19; 8:45 am]
 BILLING CODE 6450-01-P