[Federal Register Volume 84, Number 137 (Wednesday, July 17, 2019)]
[Notices]
[Pages 34175-34176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15205]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Provo River Project--Rate Order No. WAPA-189

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed Provo River Project firm power formula rate.

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SUMMARY: Western Area Power Administration (WAPA) proposes a 5-year 
Provo River Project (PRP) Firm Power Formula Rate through March 31, 
2025, which is unchanged from the existing formula rate in Rate 
Schedule PR-1 that expires on March 31, 2020. This is considered a 
minor rate adjustment since the installed capacity for the project is 
only 5,000 kilowatts and therefore below the 20,000 kilowatt threshold 
that would make it a major rate adjustment.

DATES: A consultation and comment period will begin July 17, 2019 and 
end August 16, 2019. WAPA will accept written comments at any time 
during the consultation and comment period.

ADDRESSES: Written comments and requests to be informed of Federal 
Energy Regulatory Commission (FERC) actions concerning the proposed 
formula rate submitted by WAPA to FERC for approval should be sent to: 
Steven Johnson, CRSP Manager, Colorado River Storage Project Management 
Center, Western Area Power Administration, 299 South Main Street, Suite 
200, Salt Lake City, UT 84111, (970) 252-3000, email: [email protected]. WAPA will post information about the proposed formula 
rate and the written comments received to its website at: https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas Hackett, Rates Manager, 
Colorado River Storage Project Management Center, Western Area Power 
Administration, (801) 524-5503, or email: [email protected].

SUPPLEMENTARY INFORMATION: The Deer Creek Dam, Reservoir, and Power 
Plant are components of the Deer Creek Division of the PRP, located on 
the Provo River in Utah. The marketing plan for the PRP was published 
in the Federal Register on November 21, 1994.\1\ In accordance with the 
marketing plan, WAPA markets the output of the PRP to the Utah 
Associated Municipal Power Systems, Utah Municipal Power Agency, and 
Heber Light and Power (Customers). WAPA provides electric service to 
the Customers under contracts that will expire September 30, 2024.\2\ 
WAPA intends to execute new contracts and a new marketing plan to be 
effective October 1, 2024; however, these will be done in a separate 
public rate process and are not expected to impact this rate action. 
The Customers receive all marketable power generation from the PRP and 
pay the annual revenue requirement in 12 monthly-installment payments 
based on the estimated operation, maintenance, interest, and 
replacement costs for the Deer Creek Power Plant. The payments do not 
depend upon the power and energy made available for sale each year. A 
reconciliation of estimates to actual expenses is accomplished at the 
end of the fiscal year, and any differences are included in the 
following fiscal year's revenue requirement.
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    \1\ 59 FR 60,007.
    \2\ WAPA Contract Nos. 94-SLC-0254 (Dec. 22, 1994), 94-SLC-0253 
(Jan. 19, 1995), and 07-SLC-0601 (Mar. 28, 2007).
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    On November 2, 2010, the Federal Energy Regulatory Commission 
(FERC) confirmed, approved, and placed into effect Rate Order No. WAPA-
149 for a 5-year period through March 31, 2015. Subsequently, WAPA-165 
extended the formula rate for another 5-year period through March 31, 
2020.\3\ The existing formula rate provides sufficient revenue to 
recover annual expenses, interest, and capital replacements within the 
cost recovery criteria set forth in Department of Energy (DOE) Order RA 
6120.2.
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    \3\ FERC approved consecutive 5-year rate extensions of the same 
formula rate in Docket Nos. EF15-5-000 (133 FERC ] 62,112) and EF15-
6-000 (151 FERC ] 62,223), extending the rate through March 31, 
2020.
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Legal Authority

    The proposed action is a minor rate adjustment, as defined by 10 
CFR 903.2(f). In accordance with 10 CFR 903.15(a) and 10 CFR 903.16(a), 
WAPA has determined it is not necessary to hold public information and 
public comment forums for this rate action. Nonetheless, WAPA is 
initiating a 30-day consultation and comment period to give the public 
an opportunity to comment on the proposed formula rate. WAPA will 
review and consider all timely public comments at the conclusion of the 
consultation and comment period and make amendments

[[Page 34176]]

or adjustments to the proposal as appropriate.
    WAPA is establishing the PRP formula rate in accordance with 
Section 302 of the 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 PRP.
    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 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 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 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.

Availability of Information

    All brochures, studies, comments, letters, memoranda, or other 
documents that WAPA initiates or uses to develop the proposed formula 
rate are available for inspection and copying at the Colorado River 
Storage Project Management Center located at 299 South Main Street, 
Suite 200, Salt Lake City, Utah. Many of these documents and supporting 
information are also available on WAPA's website at: https://www.wapa.gov/regions/CRSP/rates/Pages/rates.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969, 
as amended (NEPA) (42 U.S.C. 4321 et seq.); the Council on 
Environmental Quality Regulations for implementing NEPA (40 CFR parts 
1500-1508); and DOE NEPA Implementing Procedures and Guidelines (10 CFR 
part 1021), WAPA is in the process of determining whether an 
environmental assessment or an environmental impact statement should be 
prepared, or if this action can be categorically excluded from those 
requirements.

Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

    Dated: June 26, 2019.
Mark A. Gabriel,
Administrator.
[FR Doc. 2019-15205 Filed 7-16-19; 8:45 am]
BILLING CODE 6450-01-P