[Federal Register Volume 85, Number 31 (Friday, February 14, 2020)]
[Notices]
[Pages 8583-8585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03019]


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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 rate order concerning firm power formula rate.

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SUMMARY: The Assistant Secretary, Office of Electricity, confirms, 
approves, and places into effect, on an interim basis, the firm power 
formula rate for the Provo River Project (Provisional Formula Rate). 
The existing firm power formula rate under Rate Schedule Provo River 
Formula Rate PR-1 is set to expire on March 31, 2020. This rate action 
makes no change to the existing formula rate.

DATES: The Provisional Formula Rate under Rate Schedule Provo River 
Formula Rate PR-2 is effective on the first day of the first full 
billing period beginning on or after April 1, 2020, and will remain in 
effect through March 31, 2025, pending confirmation and approval by the 
Federal Energy Regulatory Commission (FERC) on a final basis or until 
superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Steven R. Johnson, Colorado River 
Storage Project (CRSP) Manager, CRSP Management Center, Western Area 
Power Administration, 299 South Main Street, Suite 200, Salt Lake City, 
UT 84111, (801) 524-6372, email [email protected]; or Mr. Thomas 
Hackett, Rates Manager, CRSP Management Center, (801) 524-5503, or 
email: [email protected].

SUPPLEMENTARY INFORMATION: On November 2, 2010, FERC confirmed, 
approved, and placed into effect the existing formula rate, which is 
set to expire on March 31, 2020.\1\ The existing formula rate provides 
sufficient revenue to recover annual expenses, including interest 
expense, and repay capital investments within the cost recovery 
criteria set forth in Department of Energy (DOE) Order RA 6120.2.
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    \1\ FERC approved consecutive 5-year rate extensions of the same 
formula rate in Docket Nos. EF10-5-000 (133 FERC ] 62,112 (2010)) 
and EF15-6-000 (151 FERC ] 62,223 (2015)), extending the rate 
through March 31, 2020.
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Legal Authority

    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 Western Area Power Administration's 
(WAPA) 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 on a final basis, 
remand, or disapprove such rates to FERC. In Delegation Order No. 00-
002.00S, effective January 15, 2020, 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, Office of Electricity. This rate action is issued 
under the Redelegation Order and DOE's procedures for public 
participation in rate adjustments set forth at 10 CFR part 903.\2\
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    \2\ 50 FR 37,835 (September 18, 1985) and 84 FR 5347 (February 
21, 2019).
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    Following DOE's review of WAPA's proposal, I hereby confirm, 
approve, and place Rate Order No. WAPA-189, which provides the firm 
power formula rate for the Provo River Project, into effect on an 
interim basis. WAPA will submit Rate Order No. WAPA-189 to FERC for 
confirmation and approval on a final basis.

    Dated: February 10, 2020.
Bruce J. Walker,
Assistant Secretary for Electricity.

Department of Energy

Assistant Secretary for Electricity

    In the matter of: Western Area Power Administration Rate Adjustment 
for the Provo River Project, Firm Power Formula Rate

Rate Order No. WAPA-189

Order Confirming, Approving, and Placing the Firm Power Formula Rate 
for the Provo River Project Into Effect on an Interim Basis

    The formula rate in Rate Order No. WAPA-189 is established pursuant 
to section 302 of the Department of Energy (DOE) Organization Act (42 
U.S.C. 7152).\3\
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    \3\ This Act 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 
(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.
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    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 Western Area Power Administration's 
(WAPA) 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 on a final basis, 
remand, or disapprove such rates to the Federal Energy Regulatory 
Commission (FERC). By Delegation Order No. 00-002.00S, effective 
January 15, 2020, 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 action is issued under the Redelegation Order and DOE's 
procedures for public participation in rate adjustments set forth at 10 
CFR part 903.\4\
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    \4\ 50 FR 37,835 (September 18, 1985) and 84 FR 5347 (February 
21, 2019).

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[[Page 8584]]

Acronyms, Terms, and Definitions

    As used in this Rate Order, the following acronyms, terms, and 
definitions apply:
    DOE Order RA 6120.2: An order outlining Power Marketing 
Administration financial reporting and ratemaking procedures.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time. Electric energy is expressed in kilowatt-hours.
    Firm: A type of product and/or service always available at the time 
requested by a Customer.
    Provisional Formula Rate: A formula rate confirmed, approved, and 
placed into effect on an interim basis by the Assistant Secretary for 
Electricity.
    Revenue Requirement: The revenue required to recover annual 
expenses (such as operation and maintenance, transmission service 
expenses, interest, and deferred expenses) and repay Federal 
investments and other assigned costs.

Effective Date

    The Provisional Formula Rate, under Rate Schedule Provo River 
Formula Rate PR-2, will take effect on the first day of the first full 
billing period beginning on or after April 1, 2020, and will remain in 
effect through March 31, 2025, pending approval by FERC on a final 
basis or until superseded.

Public Notice and Comment

    WAPA followed the Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing this formula rate.\5\ Following are the steps WAPA took to 
involve interested parties in the rate process:
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    \5\ The proposed action is a minor rate adjustment, as defined 
by 10 CFR 903.2(f).
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    1. On July 17, 2019, a Federal Register notice (84 FR 34175) 
(Proposal FRN) announced the proposed continuation of the existing firm 
power formula rate and launched the 30-day public consultation and 
comment period to give the public an opportunity to comment on the 
proposed formula rate.
    2. On July 19, 2019, WAPA emailed letters to preference customers 
and interested parties transmitting a copy of the Proposal FRN.
    3. WAPA provided a website containing all dates, customer letters, 
presentations, FRNs, and other information about this rate process. The 
website is located at (https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-189.aspx).
    4. During the 30-day consultation and comment period, which ended 
on August 16, 2019, WAPA did not receive any verbal or written 
comments.

Existing Firm Power Rate

    WAPA markets the output of the PRP to the Utah Associated Municipal 
Power Systems, Utah Municipal Power Agency, and Heber Light and Power 
(Customers).\6\ The Customers receive all marketable power generation 
from the PRP and pay the annual revenue requirement in 12 monthly 
installments 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. 
At the end of each fiscal year, WAPA reconciles estimates to actual 
expenses and includes any differences in the following fiscal year's 
revenue requirement.
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    \6\ WAPA provides electric service to the Customers under 
contracts that will expire September 30, 2024. 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 
process and will not impact this rate action.
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Basis for Rate Development

    WAPA is continuing use of its existing firm power formula rate. The 
Provisional Formula Rate, under Rate Schedule Provo River Formula Rate 
PR-2, will provide sufficient revenue to pay all annual costs, 
including interest expenses, and repay investments and irrigation aid 
within the allowable periods.

Certification of Rates

    WAPA's Administrator certified that the Provisional Formula Rate, 
under Rate Schedule Provo River Formula Rate PR-2, is the lowest 
possible rate, consistent with sound business principles. The 
Provisional Formula Rate was developed following administrative 
policies and applicable laws.

Availability of Information

    Information about this rate adjustment, including the power 
repayment study, letters, memorandums, and other supporting materials 
that were used to develop the Provisional Formula Rate, is available 
for inspection and copying at the Colorado River Storage Project 
Management Center, Western Area Power Administration, 299 South Main 
Street, Suite 200, Salt Lake City, Utah. Many of these documents are 
also available on WAPA's website at: https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-189.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    WAPA has determined that this action is categorically excluded from 
the preparation of an environmental assessment or an environmental 
impact statement.\7\ A copy of the categorical exclusion determination 
is available on WAPA's website at https://www.wapa.gov/regions/CRSP/rates/Pages/rate-order-189.aspx.
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    \7\ The determination was done in compliance with the National 
Environmental Policy Act of 1969, as amended (NEPA), 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).
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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.

Submission to the Federal Energy Regulatory Commission

    The Provisional Formula Rate herein confirmed, approved, and placed 
into effect on an interim basis, together with supporting documents, 
will be submitted to FERC for confirmation and final approval.

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-189. The rate will remain in effect on an interim 
basis until: (1) FERC confirms and approves it on a final basis; (2) a 
subsequent rate is confirmed and approved; or (3) such rate is 
superseded.

    Dated: February 10, 2020.
Bruce J. Walker,
Assistant Secretary for Electricity

United States Department of Energy Western Area Power Administration

Colorado River Storage Project Management Center Provo River Project

Formula Rate

Effective

    The first day of the first full billing period beginning on or 
after April 1, 2020, through March 31, 2025, or until superseded by 
another formula, whichever occurs earlier.

Available

    Customers of the Provo River Project.

[[Page 8585]]

Applicable

    To preference customers under contract (Contractor) with WAPA.

Power Formula Rate

    Rate Formula Provisions are contained in the service agreement. 
Service agreements currently are Contract Nos. 94-SLC-0253, 94-SLC-
0254, and 07-SLC-0601, as supplemented.

Billing

    Billing will be as specified in the service agreement.

Adjustment for Losses

    Not applicable.

[FR Doc. 2020-03019 Filed 2-13-20; 8:45 am]
 BILLING CODE 6450-01-P