[Federal Register Volume 85, Number 61 (Monday, March 30, 2020)]
[Notices]
[Page 17574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06559]



[[Page 17574]]

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DEPARTMENT OF ENERGY

Southeastern Power Administration


Proposed Rate Adjustment Cumberland System of Projects

AGENCY: Southeastern Power Administration, DOE.

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

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SUMMARY: Southeastern Power Administration (Southeastern) proposes to 
revise existing schedules of rates and charges applicable to the sale 
of power from the Cumberland System of Projects 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 June 29, 2020. A public 
information and comment forum will be held at the Southeastern Power 
Administration, 1166 Athens Tech Road, Elberton, GA, and also by 
webinar, on May 12, 2020, at 3:00 p.m. Persons desiring to attend the 
forum in person should notify Southeastern on or before April 29, 2020. 
Persons desiring to speak at the forum should notify Southeastern at 
least seven (7) days before the scheduled forum date, so a list of 
forum participants can be prepared. Notifications should be submitted 
by Email to [email protected]. Others participating in the forum 
may speak if time permits. Unless Southeastern has been notified on or 
before April 29, 2020, that at least one person intends to participate 
in the forum in person, the forum will be held by webinar only.

ADDRESSES: The Tuesday, May 12, 2020, Webinar URL information is as 
follows: https://usdeptofenergysepa .globalmeet.com/SEPA. Call in 
information: +1 (800) 216-0770, Access Code: 509632. Written comments 
should be submitted to: Administrator, Southeastern Power 
Administration, U.S. Department of Energy, 1166 Athens Tech Road, 
Elberton, GA 30635-6711; 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: 
    Background of Existing Rates: The existing schedules of rates and 
charges applicable to the sale of power from the Cumberland System of 
Projects are effective through September 30, 2020. On May 6, 2016, the 
Federal Energy Regulatory Commission (FERC) confirmed and approved, on 
a final basis, Wholesale Power Rate Schedules CBR-1-I, CSI-1-I, CEK-1-
I, CM-1-I, CC-1-J, CK-1-I, CTV-1-I, CTVI-1-B, and Replacement-3 
applicable to Cumberland System of Projects power for a period ending 
September 30, 2020 (155 FERC ] 62,092).
    Repayment Study: Existing rate schedules are based upon a January 
2015 repayment study and other supporting data contained in FERC docket 
number EF15-12-000. The annual revenue requirement in this study was 
$63,500,000. An updated repayment study, dated February 2020, indicates 
rates are not adequate to recover cost increases identified and 
therefore do not meet repayment criteria. The additional costs are due 
to U.S. Army Corps of Engineers (Corps) Operation & Maintenance expense 
increases. The revised repayment study demonstrates an annual revenue 
requirement increase to $66,150,000 per year will meet repayment 
criteria. The increase in the annual revenue requirement is $2,650,000 
per year, or about four percent.
    Proposed Rates: The rate schedules recover cost from capacity, 
energy, and additional energy. The revenue requirement is $66,150,000 
per year. The rates would be as follows:

Cumberland System Rates

Original Marketing Policy

Inside TVA Preference Customers
Capacity and Base Energy: $3.430 per kW/Month
Additional Energy: 12.835 mills per kWh
Transmission: Pass-through
Outside TVA Preference Customers (Excluding Customers Served Through 
Duke Energy Progress or East Kentucky Power Cooperative)
Capacity and Base Energy: $3.430 per kW/Month
Additional Energy: 12.835 mills per kWh
Transmission: Monthly TVA Transmission Charge divided by 545,000
Customers Served Through Duke Energy Progress
Capacity and Base Energy: $3.904 per kW/Month
TVA Transmission: TVA rate at border as computed above, adjusted for 
DEP delivery
East Kentucky Power Cooperative
Capacity: $1.826 per kW/Month
Energy: 12.835 mills per kWh
Transmission: Monthly TVA Transmission Charge divided by 545,000

    True-up Adjustment: The proposed rate schedules would continue 
adjustments annually on April 1 of each year, based on transfers of 
specific power investment to plant-in-service for the preceding Fiscal 
Year, to the base demand charge and base additional energy charge. The 
annual adjustment will be, for each increase of $1,000,000 to specific 
power plant-in-service, an increase of $0.003 per kilowatt per month 
added to the base capacity rate and an increase of 0.013 mills per 
kilowatt-hour added to the base additional energy rate. Southeastern 
will give written notice to the customers of the amount of the true-up 
by February 1 of each year.
    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, Georgia 30635-6711. The Proposed Rate 
Schedules CBR-1-J, CSI-1-J, CEK-1-J, CM-1-J, CC-1-K, CK-1-J, CTV-1-J, 
CTVI-1-C, and Replacement-3 are also available.

    Dated: March 20, 2020.
Virgil G. Hobbs III,
Acting Administrator.
[FR Doc. 2020-06559 Filed 3-27-20; 8:45 am]
 BILLING CODE 6450-01-P