[Federal Register Volume 84, Number 163 (Thursday, August 22, 2019)]
[Notices]
[Pages 43803-43805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18163]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Pick-Sloan Missouri Basin Program--Eastern Division-Rate Order 
No. WAPA-188

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed transmission and ancillary services formula 
rates.

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SUMMARY: Western Area Power Administration (WAPA) proposes new formula 
rates for the Pick-Sloan Missouri Basin Program--Eastern Division (P-
SMBP--ED) transmission and ancillary services. These rates will be used 
by WAPA's Upper Great Plains Region (UGP) to provide rate data to the 
Southwest Power Pool, Inc. (SPP), the Regional Transmission 
Organization of which UGP is a member. The existing rates for services 
expire on September 30, 2020. The proposed rates should not result in 
increased overall costs to customers compared to the current formula 
rates because the increase to the Operating Reserves rate is expected 
to be offset by a similar reduction in the transmission rate.

DATES: A consultation and comment period will begin August 22, 2019 and 
end November 20, 2019. WAPA will present a detailed explanation of the 
proposed formula rates and other modifications at public information 
forums on the following dates and times:
    1. September 24, 2019, 9 a.m. to 10:30 a.m. CDT in Omaha, Nebraska, 
and
    2. September 25, 2019, 9 a.m. to 10:30 a.m. CDT in Bismarck, North 
Dakota.
    WAPA will accept oral and written comments at public comment forums 
on the following dates and times:
    1. September 24, 2019, 11 a.m. to no later than 12 p.m. CDT in 
Omaha, Nebraska, and
    2. September 25, 2019, 11 a.m. to no later than 12 p.m. CDT in 
Bismarck, North Dakota.
    WAPA will accept written comments 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 rates submitted by WAPA to FERC for approval should be sent to: 
Mr. Jody Sundsted, Regional Manager, Upper Great Plains Region, Western 
Area Power Administration, 2900 4th Avenue North, Billings, MT 59101-
1266; or email: [email protected]. WAPA will post information about 
the proposed formula rates and written comments received to the 
``Rates'' folder on UGP's Open Access Same-Time Information System 
(OASIS), UGP's rates website, and the ``Western Area Power 
Administration UGP Information'' link on SPP's Member Related Postings 
website at the following locations, respectively:

http://www.oasis.oati.com/wapa/index.html
https://www.wapa.gov/regions/UGP/rates/Pages/rates.aspx
http://opsportal.spp.org/OASIS/Directory/Member%20Related%20Postings.

    In addition, WAPA will post information by email about the proposed 
formula rates to the SPP ``Formula Rate Posting Information 
Notification'' Exploder List: [email protected].\1\ Copies of the 
posted information will be provided upon request.
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    \1\ Information on how to subscribe to SPP's email Exploder 
Lists is available at https://www.spp.org/stakeholder-center/exploder-lists/.
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    Public information and comment forum locations are:
    1. Holiday Inn Omaha Downtown Airport, 1420 Cuming Street, Omaha, 
NE 68102, and
    2. Radisson Hotel Bismarck, 605 East Broadway, Bismarck, ND 58501.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Cady-Hoffman, Rates Manager, 
Upper Great Plains Region, Western Area Power Administration, 2900 4th 
Avenue North, Billings, MT 59101-1266; telephone: (406) 255-2920; 
email: [email protected].

SUPPLEMENTARY INFORMATION: On November 19, 2015, FERC approved and 
confirmed Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, WAUW-AS4, 
WAUW-AS5, WAUW-AS6 and WAUW-AS7 under Rate Order No. WAPA-170 on a 
final basis for a 5-year period through September 30, 2020.\2\ These 
existing rate schedules consist of separate formula-based rates for 
transmission service and ancillary services for the transmission 
facilities in the P-SMBP--ED that UGP transferred to the functional 
control of SPP. The proposed rates continue the formula-based 
methodology that includes an annual update to the financial data in the 
rate formulas with only limited changes to: (1) The Rate Formula 
Templates to increase transparency; (2) the Rate Formula Implementation 
Protocols to clarify UGP's rate implementation and annual update 
procedures; (3) the Operating Reserves formula rates to incorporate 
costs associated with UGP's current reserve sharing group membership; 
and (4) the Rate Schedules for Energy Imbalance and Generator Imbalance 
to accommodate possible participation in a Western Interconnection 
energy imbalance service market. WAPA intends the proposed formula-
based rates, if adopted, to go into effect on October 1, 2020. The 
charges under the rates would be updated on January 1 of each year 
thereafter. The proposed formula rates would remain in effect until 
September 30, 2025, or until WAPA changes the formula rates through 
another public rate process pursuant to 10 CFR part 903, whichever 
occurs first.
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    \2\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF15-8-000, 153 FERC ] 61,213 (2015). FERC 
also accepted the inclusion of UGP's revenue requirements for 
transmission and ancillary services under the SPP Open Access 
Transmission Tariff, FERC Docket No. ER15-2354-000, 152 FERC ] 
61,257 (2015).
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    UGP is a Transmission Owner member of SPP pursuant to negotiated 
provisions in its SPP Membership Agreement and the SPP Bylaws and SPP 
Open Access Transmission Tariff (SPP OATT). Transmission and ancillary 
services are provided by SPP under the SPP OATT for UGP's facilities 
transferred to the functional control of SPP. UGP has transmission 
facilities in both the Eastern and Western Interconnections separated 
by the Miles City direct current tie and the Fort Peck Power Plant 
substation. UGP operates

[[Page 43804]]

its Western Area Power Administration, Upper Great Plains West (WAUW) 
Balancing Authority Area in the Western Interconnection as the 
Balancing Authority (BA), and has not placed the portion of its 
transmission system located in the Western Interconnection into SPP's 
Integrated Marketplace. UGP still provides ancillary services 
associated with its WAUW in the Western Interconnection as the BA.
    UGP needs to adopt new formula rates for transmission and ancillary 
services so that UGP's costs can continue to be recovered under the SPP 
OATT. UGP's revenue requirements are added to the annual revenue 
requirements of other transmission owners in the multi-owner SPP 
pricing Zone 19, also identified as the Upper Missouri Zone (UMZ) for 
transmission service billed by SPP within the UMZ. UGP's revenue 
requirements under these proposed rates also impact other costs for 
transmission service within the broader SPP footprint. The proposed 
formula rates provide UGP sufficient revenue to pay all annual costs, 
including interest expenses, and repay investment.

Proposed Formula Transmission Rates

    UGP proposes to continue to use its current formula rate 
calculation methodology for its Annual Transmission Revenue Requirement 
(ATRR), currently provided under Rate Schedule WAUGP-ATRR. This rate 
schedule includes UGP's transmission facilities in both the Eastern and 
Western Interconnections that are transferred to the functional control 
of SPP and used by SPP in order to provide transmission service in the 
UMZ under the SPP OATT. Consistent with UGP's current formula rates, 
UGP proposes to continue recovering transmission system expenses and 
investments on a forward-looking basis by using projections to estimate 
transmission costs for the upcoming year, with a true-up of incurred 
costs in a subsequent year. Transmission-related annual costs include 
operation and maintenance, interest, administrative and general costs, 
and depreciation. Cost data is submitted to SPP in standard revenue 
requirement templates and classified as either ``Zonal'' or 
``Regional'' costs as defined under the SPP OATT. ``Zonal'' costs are 
recovered within the local pricing zone while ``Regional'' costs are 
recovered across the entire SPP footprint. UGP is only proposing 
changes to the ATRR Formula Rate Template to more clearly and 
transparently document the facilities and associated portion of UGP's 
costs that are classified as ``Zonal'' versus ``Regional'' under the 
SPP OATT. The Formula Rate Template for ATRR and related information 
will be posted on the UGP OASIS, the UGP rates website, and the SPP 
Member Related Postings website at the locations listed above.

Proposed Formula Rate Protocols

    For transmission and ancillary services provided under the SPP 
OATT, UGP proposes to continue to provide information relating to UGP's 
rate implementation and annual updates in Formula Rate Implementation 
Protocols (Protocols), which together with the Formula Rate Templates 
(Templates), comprise the Formula Rates that are submitted to SPP to be 
incorporated in the SPP OATT. UGP proposes changes to its current 
Protocols to clarify and include additional detail regarding UGP's rate 
implementation and annual update procedures. UGP was one of the first 
transmission owners in the UMZ to develop Protocols. Therefore, UGP 
needs to update its Protocols to be more consistent with the Protocols 
of other transmission owners in the UMZ that were developed and 
approved after UGP joined SPP. All relevant information regarding 
customer meetings will also be contained in the Protocols. The 
Protocols will be posted on the UGP OASIS, the UGP rates website, and 
the SPP Member Related Postings website at the locations listed above.

Proposed Formula Rates for SSCD Service

    UGP proposes to continue to use its current formula rate 
calculation methodology for Scheduling, System Control, and Dispatch 
Service (SSCD), currently provided under Rate Schedule WAUGP-AS1 for 
the SPP UMZ. This rate schedule also includes transmission facilities 
in the WAUW. UGP proposes to include additional information regarding 
implementation and annual updates for SSCD in its revised Protocols. 
The Formula Rate Template for SSCD and related information will be 
posted on the UGP OASIS, the UGP rates website, and the SPP Member 
Related Postings website at the locations listed above.

Proposed Formula Rate for Regulation and Frequency Response Service

    UGP proposes to continue to use its current formula rate 
calculation methodology for Regulation and Frequency Response Service 
(Regulation), currently provided under Rate Schedule WAUW-AS3. This 
rate schedule addresses Regulation associated with UGP's WAUW in the 
Western Interconnection. UGP proposes to include additional information 
regarding implementation and annual updates for Regulation in its 
revised Protocols. Given the SPP Integrated Marketplace does not extend 
into the Western Interconnection, UGP will continue to provide 
Regulation in the WAUW as the BA, primarily from United States Army 
Corps of Engineers generation facilities. The Formula Rate Template and 
related information for Regulation will be posted on the UGP OASIS, the 
UGP rates website, and the SPP Member Related Postings website at the 
locations listed above.

Proposed Formula Rates for Operating Reserves Service--Spinning and 
Supplemental

    UGP proposes to continue to use its current formula rate 
calculation methodology for Operating Reserve--Spinning Reserve Service 
and for Operating Reserve--Supplemental Reserve Service (collectively, 
Operating Reserves), currently provided under Rate Schedules WAUW-AS5 
and WAUW-AS6, respectively. These rate schedules address Operating 
Reserves associated with UGP's WAUW in the Western Interconnection. UGP 
proposes a change to the rate formulas to incorporate costs associated 
with its current reserve sharing group membership. In addition, UGP 
proposes to include additional information regarding implementation and 
annual updates for Operating Reserves in its revised Protocols. Given 
the SPP Integrated Marketplace does not extend into the Western 
Interconnection, UGP will continue to provide Operating Reserves in the 
WAUW as the BA. UGP utilizes the reserve requirement of the reserve 
sharing group of which UGP is currently a member for its transmission 
system in the Western Interconnection. The Formula Rate Templates for 
Operating Reserves and related information will be posted on the UGP 
OASIS, the UGP rates website, and the SPP Member Related Postings 
website at the locations listed above.

Proposed Formula Rates for Energy Imbalance and Generator Imbalance 
Services

    UGP proposes to continue to use its current formula rate 
calculation methodologies for Energy Imbalance Service (Energy 
Imbalance), currently provided under Rate Schedule WAUW-AS4, and 
Generator Imbalance Service (Generator Imbalance), currently provided 
under Rate Schedule WAUW-AS7. These rate schedules address Energy 
Imbalance and Generator Imbalance associated with UGP's WAUW in the 
Western Interconnection. UGP is proposing changes to Rate

[[Page 43805]]

Schedules WAUW-AS4 and WAUW-AS7 to accommodate possible participation 
in a Western Interconnection energy imbalance service market by UGP as 
the BA. UGP proposes to include additional information regarding 
implementation and annual updates for Energy Imbalance and Generator 
Imbalance in its revised Protocols. Given that the SPP Integrated 
Marketplace does not extend into the Western Interconnection, UGP will 
continue to provide Energy Imbalance and Generator Imbalance in the 
WAUW as the BA from its own resources or from resources available to 
it, including possible participation in a Western Interconnection 
energy imbalance service market. The Formula Rate Templates and related 
information for Energy Imbalance and Generator Imbalance will be posted 
on the UGP OASIS, the UGP rates website, and the SPP Member Related 
Postings website at the locations listed above.

Legal Authority

    Existing DOE procedures for public participation in power and 
transmission rate adjustments (10 CFR part 903) were published on 
September 18, 1985 and February 21, 2019.\3\ The proposed action is a 
major rate adjustment, as defined by 10 CFR part 903.2(e). In 
accordance with 10 CFR 903.15(a) and 10 CFR 903.16(a), WAPA will hold 
public information and public comment forums for this rate adjustment. 
WAPA will review and consider all timely public comments at the 
conclusion of the consultation and comment period and make amendments 
or adjustments to the proposal as appropriate. Proposed rates will be 
forwarded to the Assistant Secretary for Electricity for approval on an 
interim basis.
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    \3\ 50 FR 37835 (Sept 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    WAPA is establishing the formula rates for P-SMBP--ED in accordance 
with Section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152). This Act transferred to, and vested in, the Secretary of 
Energy the power marketing functions of the Secretary of the Interior 
and the Bureau of Reclamation (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)); section 5 of the Flood Control Act of 
1944 (16 U.S.C. 825s); 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 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. By 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 to the Assistant Secretary 
for Electricity the authority to confirm, approve, and place into 
effect on an interim basis power and transmission rates for WAPA.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that WAPA initiates or uses to develop the proposed formula 
rates are available for inspection and copying at the Upper Great 
Plains Region, Western Area Power Administration, located at 2900 4th 
Avenue North, Billings, Montana. Many of these documents and supporting 
information are available on UGP's rates website at http://www.wapa.gov/ugp/rates/default.htm and the other posting locations 
listed above.

Ratemaking Procedure Requirements

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969 (42 U.S.C. 4321-4347); 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: August 9, 2019.
Mark A. Gabriel,
Administrator.
[FR Doc. 2019-18163 Filed 8-21-19; 8:45 am]
 BILLING CODE 6450-01-P