[Federal Register Volume 85, Number 61 (Monday, March 30, 2020)]
[Notices]
[Pages 17572-17573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06558]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Southeastern Power Administration


Proposed Rate Schedules for Kerr-Philpott System

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of proposed rates and opportunities for public review 
and comment.

-----------------------------------------------------------------------

SUMMARY: Southeastern Power Administration (Southeastern) proposes to 
update and extend existing schedules of rates and charges applicable to 
the sale of power from the Kerr-Philpott System effective October 1, 
2020, through September 30, 2025. Interested persons may review the 
rates and supporting studies and submit written comments. Southeastern 
will consider all comments received in this process.

DATES: Written comments are due on or before April 29, 2020. In 
accordance with 10 CFR 903.23(a), Southeastern has determined that it 
is not necessary to hold public information or public comment forums 
for this rate action but is initiating a 30-day consultation and 
comment period to give the public an opportunity to comment on the 
proposed extension. Southeastern will review and consider all timely 
comments at the conclusion of the consultation and comment period and 
make adjustments to the proposal as appropriate.

ADDRESSES: Written comments should be submitted to: Administrator, 
Southeastern Power Administration, U. S. Department of Energy, 1166 
Athens Tech Road, Elberton, GA. 30635-6711 or Email: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs III, Assistant 
Administrator, Finance and Marketing, Southeastern Power 
Administration, U.S. Department of Energy, 1166 Athens Tech Road, 
Elberton, GA 30635-6711, (706) 213-3838; Email: 
[email protected].

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission 
(FERC), by order issued February 24, 2016, 154 FERC ] 62,129, confirmed 
and approved Rate Schedules VA-1-C, VA-2-C, VA-3-C, VA-4-C, DEP-1-C, 
DEP-2-C, DEP-3-C, DEP-4-C, AP-1-C, AP-2-C, AP-3-C, AP-4-C, NC-1-C, and 
Replacement-2-B, for the period October 1, 2015, through September 30, 
2020. A repayment study prepared in February of 2020 showed existing 
rates are adequate to recover all costs required by present repayment 
criteria. However, approval of the existing rate schedules expires 
September 30, 2020.
    The existing rate schedules include an annual true-up mechanism for 
the capacity and energy rates based on the variance of the actual net 
revenue available for repayment from the planned net revenue available 
for repayment. The adjustment is for every $100,000 under-recovery of 
the planned net revenue available for repayment, the base capacity 
charge is increased by $0.02 per kilowatt per month, up to a maximum of 
$0.75 per kilowatt per month, and the base energy charge is increased 
by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 mills per 
kilowatt-hour. For every $100,000 over-recovery of the planned net 
revenue available for repayment, the base capacity charge is reduced by 
$0.02 per kilowatt per month, up to a maximum of $0.75 per kilowatt per 
month, and the base energy charge is reduced by 0.10 mills per 
kilowatt-hour, up to a maximum of 3.0 mills per kilowatt-hour.
    The initial base capacity charge for the current rate schedules was 
$4.40 per kilowatt per month. The initial base energy charge was 17.80 
mills per kilowatt-hour. As of April 1, 2020, the base capacity charge 
has been adjusted to $3.65 per kilowatt per month and the base energy 
charge has been adjusted to 14.80 mills per kilowatt-hour for net 
revenue available for repayment. The existing rates are adequate to 
meet repayment criteria. The annual true-ups incorporated in the rate 
schedules have proven to be effective in matching revenue available for 
repayment to planned amounts. Southeastern is proposing to maintain the 
initial base rate of $4.40 per kilowatt per month for capacity and the 
initial base energy charge of 17.80 mills per kilowatt-hour and the 
annual true-up mechanism.

Proposed Unit Rates

    The initial base rates for capacity and energy will be as follows:


[[Page 17573]]


Capacity: $4.40 per kW per month
Energy: 17.80 mills per kWh

    The rates are based on a repayment study estimating the Kerr-
Philpott System will produce the following net revenue available for 
repayment (rounded to nearest $10,000):

------------------------------------------------------------------------
                                             Estimated
                                            annual net    Cumulative net
               Fiscal year                    revenue         revenue
                                           available for   available for
                                             repayment       repayment
------------------------------------------------------------------------
2020....................................        $200,000        $200,000
2021....................................       2,560,000       2,760,000
2022....................................       2,940,000       5,700,000
2023....................................       2,360,000       8,060,000
2024....................................       2,430,000      10,490,000
2025....................................       2,130,000      12,620,000
2026....................................       2,210,000      14,830,000
2027....................................       2,310,000      17,140,000
2028....................................       2,420,000      19,560,000
2029....................................       2,530,000      22,090,000
------------------------------------------------------------------------

    The proposed rates continue a true-up of the capacity and energy 
rates based on the cumulative net revenue available for repayment from 
the table above. For every $100,000 under-recovery of the planned 
cumulative net revenue available for repayment, Southeastern will 
increase the base capacity charge by $0.02 per kilowatt per month, up 
to a maximum of $0.75 per kilowatt per month, and increase the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt-hour. For every $100,000 over-recovery of the 
planned cumulative net revenue available for repayment, Southeastern 
will reduce the base capacity charge by $0.02 per kilowatt per month, 
up to a maximum of $0.75 per kilowatt per month, and reduce the base 
energy charge by 0.10 mills per kilowatt-hour, up to a maximum of 3.0 
mills per kilowatt-hour, to be implemented April 1 of the next fiscal 
year.
    Southeastern is proposing the following rate schedules to be 
effective for the period from October 1, 2020, through September 30, 
2025. The capacity charge and energy charge will be the same for all 
rate schedules. These rate schedules are necessary to accommodate the 
transmission and scheduling arrangements available in the Kerr-Philpott 
System.

Rate Schedule VA-1-D

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted and scheduled pursuant to 
contracts between the Government, Virginia Electric and Power Company 
(also known as Dominion Virginia Power [DVP]), and DVP's Transmission 
Operator, PJM Interconnection, LLC (PJM).

Rate Schedule VA-2-D

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted pursuant to contracts between 
the Government, DVP, and PJM. The customer is responsible for providing 
a scheduling arrangement with the Government.

Rate Schedule VA-3-D

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be scheduled pursuant to contracts between 
the Government, DVP, and PJM. The customer is responsible for providing 
a transmission arrangement.

Rate Schedule VA-4-D

    Available to public bodies and cooperatives in the service area of 
DVP and PJM. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule DEP-1-D

    Available to public bodies and cooperatives in North Carolina to 
whom power may be transmitted and scheduled pursuant to contracts 
between the Government and Duke Energy Progress.

Rate Schedule DEP-2-D

    Available to public bodies and cooperatives in North Carolina to 
whom power may be transmitted pursuant to contracts between the 
Government and Duke Energy Progress. The customer is responsible for 
providing a scheduling arrangement with the Government.

Rate Schedule DEP-3-D

    Available to public bodies and cooperatives in North Carolina to 
whom power may be scheduled pursuant to contracts between the 
Government and Duke Energy Progress. The customer is responsible for 
providing a transmission arrangement.

Rate Schedule DEP-4-D

    Available to public bodies and cooperatives in the service area of 
Duke Energy Progress. The customer is responsible for providing a 
scheduling arrangement with the Government and for providing a 
transmission arrangement.

Rate Schedule AP-1-D

    Available to public bodies and cooperatives in Virginia to whom 
power may be transmitted and scheduled pursuant to contracts between 
the Government, American Electric Power Service Corporation and the 
American Electric Power Service Corporation's Transmission Operator, 
PJM Interconnection, LLC (PJM).

Rate Schedule AP-2-D

    Available to public bodies and cooperatives in Virginia to whom 
power may be transmitted pursuant to contracts between the Government, 
American Electric Power Service Corporation, and PJM. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule AP-3-D

    Available to public bodies and cooperatives in Virginia to whom 
power may be scheduled pursuant to contracts between the Government, 
American Electric Power Service Corporation, and PJM. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule AP-4-D

    Available to public bodies and cooperatives in the service area of 
American Electric Power Service Corporation and PJM. The customer is 
responsible for providing a scheduling arrangement with the Government 
and for providing a transmission arrangement.

Rate Schedule NC-1-D

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted pursuant to a contract 
between the Government and PJM and scheduled pursuant to a contract 
between the Government and Duke Energy Progress.

Rate Schedule Replacement-2-C

    This rate schedule shall be applicable to the sale of energy 
purchased to meet contract minimum energy and sold under appropriate 
contracts between the Government and the Customer.
    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, GA 30635. Proposed Rate Schedules VA-
1-D, VA-2-D, VA-3-D, VA-4-D, DEP-1-D, DEP-2-D, DEP-3-D, DEP-4-D, AP-1-
D, AP-2-D, AP-3-D, AP-4-D, NC-1-D, and Replacement-2-C are also 
available.

    Dated: March 20, 2020.
Virgil G. Hobbs III,
Acting Administrator.
[FR Doc. 2020-06558 Filed 3-27-20; 8:45 am]
 BILLING CODE 6450-01-P