[Federal Register Volume 85, Number 135 (Tuesday, July 14, 2020)]
[Notices]
[Pages 42384-42397]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15173]


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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 rate order concerning transmission and ancillary 
services formula rates.

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SUMMARY: The Assistant Secretary for Electricity confirms, approves, 
and places into effect, on an interim basis, the formula rates for the 
Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--ED) 
transmission

[[Page 42385]]

and ancillary services (Provisional Formula Rates). These rates will be 
used by Western Area Power Administration's (WAPA) Upper Great Plains 
Region (UGP) to provide rate data to Southwest Power Pool, Inc. (SPP), 
the Regional Transmission Organization of which UGP is a member. These 
new formula rates replace the existing transmission and ancillary 
services formula rates under Rate Order No. WAPA-170 that expire on 
September 30, 2020.

DATES: The Provisional Formula Rates under Rate Schedules WAUGP-ATRR, 
WAUGP-AS1, WAUW-AS3, WAUW-AS4, WAUW-AS5, WAUW-AS6 and WAUW-AS7 are 
effective October 1, 2020, and will remain in effect through September 
30, 2025, pending confirmation and approval by the Federal Energy 
Regulatory Commission (FERC) on a final basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Mr. Jody Sundsted, Regional Manager, 
Upper Great Plains Region, Western Area Power Administration, 2900 4th 
Avenue North, Billings, MT 59101-1266; (406) 255-2801; email: 
[email protected], or Linda Cady-Hoffman, Rates Manager, Upper Great 
Plains Region, telephone: (406) 255-2920; email: [email protected].

SUPPLEMENTARY INFORMATION: On November 19, 2015, FERC confirmed and 
approved 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 effective for a 5-year period through September 30, 
2020.\1\ Those schedules consisted of separate formula-based rates for 
transmission and ancillary services for the transmission facilities in 
the P-SMBP--ED that UGP transferred to the functional control of SPP. 
The new rates continue the formula-based methodology that includes an 
annual update to the financial data in the rate formulas. The charges 
under these rates will be annually updated January 1 of each year 
beginning 2021 and thereafter. The formula rates provide 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\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF15-8-000, 153 FERC ] 61213 (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 ] 61257 
(2015).
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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 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 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. 00-002.10E, effective 
February 14, 2020, 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.\2\
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    \2\ 50 FR 37835 (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-188, which provides the formula 
rates for transmission and ancillary services, into effect on an 
interim basis. WAPA will submit Rate Order No. WAPA-188 to FERC for 
confirmation and approval on a final basis.

Signing Authority

    This document of the Department of Energy was signed on July 9, 
2020, by Bruce J. Walker, Assistant Secretary for Electricity, pursuant 
to delegated authority from the Secretary of Energy. That document, 
with the original signature and date, is maintained by DOE. For 
administrative purposes only, and in compliance with requirements of 
the Office of the Federal Register, the undersigned DOE Federal 
Register Liaison Officer has been authorized to sign and submit the 
document in electronic format for publication, as an official document 
of the Department of Energy. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on July 9, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

DEPARTMENT OF ENERGY

In the matter of:

Western Area Power Administration Rate Adjustment for the Pick-Sloan 
Missouri Basin Program--Eastern Division Transmission and Ancillary 
Services Formula Rates;

[Rate Order No. WAPA-188]
Order Confirming, Approving, and Placing the Transmission and Ancillary 
Services Formula Rates for the Pick-Sloan Missouri Basin Program--
Eastern Division Into Effect on an Interim Basis
    The formula rates in Rate Order No. WAPA-188 are established 
following 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 section 5 of the Flood Control Act of 1944 (16 U.S.C. 
825s); and other acts that specifically apply to the projects 
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 
into effect such rates 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). 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-
002.10E, effective February 14, 2020, 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 37835 (September 18, 1985) and 84 FR 5347 (February 
21, 2019).

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[[Page 42386]]

Acronyms, Terms, and Definitions

    As used in this Rate Order, the following acronyms, terms, and 
definitions apply:
    $/MW-year: Annual charge for capacity (i.e., $ per megawatt (MW) 
per year).
    ATRR: Annual Transmission Revenue Requirement is the net revenue 
requirement for the Transmission Services calculated in accordance with 
the Formula Rate.
    BA: Balancing Authority--The responsible entity that integrates 
resource plans ahead of time, maintains load-interchange-generation 
balance within a designated area, and supports interconnection 
frequency in real-time.
    Balancing Authority Area: An electric system or systems, bounded by 
interconnection metering and telemetry, capable of controlling 
generation to maintain its interchange schedule with other Balancing 
Authorities and contributing to frequency regulation of the 
Interconnection.
    Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment. It is expressed in kilowatts 
(kW).
    Corps: U.S. Army Corps of Engineers.
    DOE: United States Department of Energy.
    Energy: Power produced or delivered over a period of time. Measured 
in terms of the work capacity over a period of time. Electric energy is 
expressed in kilowatt-hours.
    Energy Imbalance Service: A service that provides energy correction 
for any hourly mismatch between a Southwest Power Pool Transmission 
Customer's energy supply and the demand served.
    FERC: Federal Energy Regulatory Commission.
    FRN: Federal Register notice.
    Generator Imbalance Service: A service that provides energy 
correction for any hourly mismatch between generator output and a 
delivery schedule from that generator to another Balancing Authority 
Area or to a load within the same Balancing Authority Area.
    kW: Kilowatt--the electrical unit of capacity that equals 1,000 
watts.
    kWh: Kilowatt-hour--the electrical unit of energy that equals 1,000 
watts in 1 hour.
    Load: The amount of electric power or energy delivered or required 
at any specified point(s) on a system.
    MW: Megawatt--the electrical unit of capacity that equals 1 million 
watts or 1,000 kilowatts.
    NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321-
4347).
    OASIS: Open Access Same-Time Information System--An electronic 
posting system that a service provider maintains for transmission 
access data that allows all customers to view information 
simultaneously.
    P-SMBP: Pick-Sloan Missouri Basin Program.
    P-SMBP--ED: Pick-Sloan Missouri Basin Program--Eastern Division.
    Provisional Formula Rate: A formula rate that has been confirmed, 
approved, and placed into effect on an interim basis by the Assistant 
Secretary for Electricity.
    Rate Brochure: A document prepared for public distribution 
explaining the rationale and background for the rate proposal contained 
in this rate order.
    Regulation and Frequency Response Service: A service that provides 
for following the moment-to-moment variations in the demand or supply 
in a Balancing Authority Area and maintaining scheduled interconnection 
frequency.
    Reserve Services: Spinning Reserve Service and Supplemental Reserve 
Service.
    Revenue Requirement: The revenue required to recover annual 
expenses (such as operation and maintenance, purchase power, 
transmission service expenses, interest expense, and deferred expenses) 
and repay Federal investments, and other assigned costs.
    Schedule: An agreed-upon transaction size (megawatts), beginning 
and ending ramp times and rate, and type of service required for 
delivery and receipt of power between the contracting parties and the 
Balancing Authority(ies) involved in the transaction.
    Scheduling, System Control and Dispatch Service: A service that 
provides for (a) scheduling, (b) confirming and implementing an 
interchange schedule with other balancing authorities, including 
intermediary balancing authorities providing transmission service, and 
(c) ensuring operational security during the interchange transaction.
    Southwest Power Pool, Inc. (SPP): A Regional Transmission 
Organization.
    SPP's Integrated Marketplace (Integrated Marketplace): The SPP 
Energy and Operating Reserve Markets and the Transmission Congestion 
Rights Markets.
    Spinning Reserve Service: Generation capacity needed to serve load 
immediately in the event of a system contingency. Spinning Reserve 
Service may be provided by generating units that are on-line and loaded 
at less than maximum output.
    Supplemental Reserve Service: Generation capacity needed to serve 
load in the event of a system contingency; however, it is not available 
immediately to serve load but rather within a short period of time. 
Supplemental Reserve Service may be provided by generation units that 
are on-line but unloaded, by quick start generation or by interruptible 
load.
    SPP Tariff: Southwest Power Pool, Open Access Transmission Tariff, 
approved by FERC.
    SPP Transmission Customer: Any eligible customer (or its designated 
agent) that receives transmission service under the SPP Tariff.
    Transmission Provider: Any utility that owns, operates, or controls 
facilities used to transmit electric energy in interstate commerce. SPP 
is the Transmission Provider under the SPP Tariff.
    Transmission System: The facilities owned, controlled, or operated 
by the transmission owner or Transmission Provider that are used by the 
Transmission Provider to provide transmission service.
    UMZ: Upper Missouri Zone--Multi-owner zone in SPP in which WAPA-UGP 
participates as a Transmission Owner; also defined as Zone 19 under the 
SPP Tariff. The UMZ includes transmission facilities located in both 
the Eastern and Western Interconnections.
    WAUW: Western Area Power Administration, Upper Great Plains West 
Balancing Authority Area. WAUW is located in the Western 
Interconnection.
    WAPA: United States Department of Energy, Western Area Power 
Administration.
    Western Interconnection: A major alternating current power grid in 
North America. The Western Interconnection stretches from Western 
Canada south to Baja California in Mexico, reaching eastward over the 
Rockies to the Great Plains. Western Interconnection is comprised of 
the states of Washington, Oregon, California, Idaho, Nevada, Utah, 
Arizona, Colorado, Wyoming, portions of Montana, South Dakota, 
Nebraska, New Mexico and Texas in the United States, the Provinces of 
British Columbia and Alberta in Canada, and a portion of the 
Comisi[oacute]n Federal de Electricidad's system in Baja California in 
Mexico.
    WAPA-UGP: United States Department of Energy, Western Area Power 
Administration, Upper Great Plains Region. Western-UGP is the 
definition for WAPA's Upper Great Plains Region in the SPP Tariff.

Effective Date

    The Provisional Formula Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-
AS3, WAUW-AS4,

[[Page 42387]]

WAUW-AS5, WAUW-AS6 and WAUW-AS7 are effective October 1, 2020, and will 
remain in effect through September 30, 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 these formula rates. Following are the steps WAPA took to 
involve interested parties in the rate process:
    1. On August 22, 2019, a Federal Register notice (84 FR 43803) 
(Proposal FRN) announced the proposed formula rates and launched the 
90-day public consultation and comment period.
    2. On August 23, 2019, WAPA notified all P-SMBP--ED customers and 
interested parties of the proposed rates and provided a copy of the 
Proposal FRN.
    3. On September 24, 2019, WAPA held a public information forum in 
Omaha, Nebraska, and on September 25, 2019, WAPA held a public 
information forum in Bismarck, North Dakota. WAPA representatives 
explained the proposed formula rates, answered questions, and gave 
notice that more information was available in the customer Rate 
Brochure.
    4. On September 24, 2019, WAPA held a public comment forum in 
Omaha, Nebraska, and on September 25, 2019, WAPA held a public comment 
forum in Bismarck, North Dakota. This provided customers and other 
interested parties with opportunity to comment for the record.
    5. WAPA posted information about this rate process that contains 
all dates, customer letters, presentations, FRNs, customer Rate 
Brochure, and other information about this rate process at the 
following locations: (a) WAPA-UGP's OASIS at: http://www.oasis.oati.com/wapa/index.html; (b) WAPA-UGP's Rates web page at: 
https://www.wapa.gov/regions/UGP/rates/Pages/rates.aspx; and (c) the 
``Western Area Power Administration UGP Information'' link on SPP's 
Member Related Postings website at: http://opsportal.spp.org/OASIS/Directory/Member%20Related%20Postings.
    6. During the 90-day consultation and comment period, which ended 
on November 20, 2019, WAPA received one oral comment (at the September 
24th public comment forum) and one written set of comments. The 
comments and WAPA's responses are addressed below. All comments have 
been considered in the preparation of this Rate Order.
    One representative of the following organization made oral 
comments: Missouri River Energy Services (MRES).
    Written comments were received from the following interested 
parties: Missouri River Energy Services (MRES).

Project Description

    The initial stages of the Missouri River Basin Project were 
authorized by section 9 of the Flood Control Act of 1944 (58 Stat. 887, 
890, Pub. L. 78-534). It was later renamed the P-SMBP. The P-SMBP is a 
comprehensive program with the following authorized functions: Flood 
control, navigation improvement, irrigation, municipal and industrial 
water development, and hydroelectric production for the entire Missouri 
River Basin.
    WAPA-UGP owns and operates an extensive system of high-voltage 
transmission facilities that it uses to market significant quantities 
of Federally-generated hydroelectric power from the P-SMBP--ED.
    WAPA-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 WAPA-
UGP's facilities transferred to the functional control of SPP. WAPA-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. WAPA-UGP operates 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. WAPA-UGP still provides ancillary services associated with 
its WAUW in the Western Interconnection as the BA.
    WAPA-UGP's formula rates for transmission and ancillary services 
will be applied so WAPA-UGP's costs can continue to be recovered under 
the SPP OATT. WAPA-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. WAPA-UGP's 
revenue requirements under these proposed rates also impact other costs 
for transmission service within the broader SPP footprint. The formula 
rates provide WAPA-UGP sufficient revenue to pay all annual costs, 
including interest expenses, and repay investment.

P-SMBP--ED Transmission and Ancillary Services Rate Studies

    Existing Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, WAUW-AS4, 
WAUW-AS5, WAUW-AS6 and WAUW-AS7 were approved under Rate Order No. 
WAPA-170 for a 5-year period beginning on October 1, 2015, and ending 
September 30, 2020. Those rate schedules consisted of separate formula-
based rates for transmission service and ancillary services for the 
transmission facilities in the P-SMBP--ED that WAPA-UGP transferred to 
the functional control of SPP. The new 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 Formula Rate 
Templates (Templates) to increase transparency through addition of 
financial data source detail; (2) the Formula Rate Implementation 
Protocols (Protocols) to clarify WAPA-UGP's rate implementation and 
annual update procedures; (3) the Operating Reserves formula rates to 
incorporate costs associated with WAPA-UGP's current reserve sharing 
group membership; and (4) the rate schedules for Energy Imbalance and 
Generator Imbalance to accommodate participation in a Western 
Interconnection energy imbalance service market.
    WAPA prepared Transmission and Ancillary Services rates studies to 
ensure that the formula rates are based on the cost of service of the 
WAPA-UGP eligible transmission facilities that are included in the UMZ 
and the associated operation of the WAUW. These studies included all 
applicable expenses and associated offsetting revenues.

Provisional Rates

    The revenue requirements for 2020 for the individual services are 
outlined in the following table.

[[Page 42388]]



 Provisional WAPA-UGP Transmission and Ancillary Services Formula Rates
------------------------------------------------------------------------
                                                      Provisional 2020
            Service             Rate schedule No.      annual revenue
                                                        requirement
------------------------------------------------------------------------
Transmission..................  WAUGP-ATRR.......  $136,325,626--SPP
                                                    Sched 9; $666,093--
                                                    SPP Sched 11
                                                    (Zonal); $111,344--
                                                    SPP Sched 11
                                                    (Regional).
Scheduling, System Control,     WAUGP-AS1........  $11,534,163.
 and Dispatch.
Regulation and Frequency        WAUW-AS3.........  $291,973.
 Response.
Operating Reserves--Spinning    WAUW-AS5 and WAUW- $409,789.
 and Supplemental Reserves.      AS6.
Energy Imbalance..............  WAUW-AS4.........  N/A.
Generator Imbalance...........  WAUWA-AS7........  N/A.
------------------------------------------------------------------------

Transmission and Ancillary Rate Discussion

    WAPA-UGP includes facilities in the UMZ ATRR calculation that meet 
Transmission Facility criteria as identified in Attachment AI to SPP's 
OATT. WAPA-UGP identifies any portion of the ATRR eligible for recovery 
under SPP Schedule 11 pursuant to the SPP OATT in its Rate Formula 
Template submitted under Attachment H of the SPP OATT.
    WAPA-UGP will true-up the cost estimates with actual costs. Revenue 
collected in excess of WAPA-UGP's actual net revenue requirement will 
be returned to customers through a credit against a revenue requirement 
in a subsequent year. Actual revenues that are less than the net 
revenue requirement would likewise be recovered in a subsequent year. 
The true-up procedure will ensure that WAPA-UGP will recover no more 
and no less than the actual transmission costs for the year.
    Data used in the annual recalculation of the formula rate effective 
on January 1 each year will be made available for review and comment on 
or around September 1 each year as described in the Protocols. WAPA-UGP 
will provide customers the opportunity to discuss and comment on the 
recalculated rates on or before November 15, 2020, and annually by 
November 15 of subsequent years as described in the Protocols. The 
Protocols that describe the meetings where customers have opportunity 
to discuss and comment are available online at the following locations: 
(1) WAPA-UGP's OASIS at: http://www.oasis.oati.com/wapa/index.html; (2) 
WAPA-UGP's Rates web page at: https://www.wapa.gov/regions/UGP/rates/Pages/rates.aspx; and (3) the ``Western Area Power Administration UGP 
Information'' link on SPP's Member Related Postings website at: http://opsportal.spp.org/OASIS/Directory/Member%20Related%20Postings. This 
procedure ensures that interested parties are aware of the data used to 
calculate the rates. This also provides interested parties the 
opportunity to comment before the costs are collected through the 
formula rate.

Formula Transmission Rate

    WAPA-UGP will continue to use its current formula rate calculation 
methodology for its ATRR, provided under Rate Schedule WAUGP-ATRR. This 
rate schedule includes WAPA-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 
WAPA-UGP's existing formula rate, WAPA-UGP will 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. The ATRR Formula Rate Template includes breakouts of the 
annual revenue requirement for each individual Base Plan Upgrade, as 
defined under the SPP OATT, assigned to and funded by WAPA-UGP, along 
with ``Regional'' and ``Zonal'' allocation of the total net annual 
revenue requirement for each Project.

Formula Rate Implementation Protocols

    For transmission and ancillary services provided under the SPP 
OATT, WAPA-UGP will continue to provide information relating to WAPA-
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. WAPA-UGP changed 
its Protocols to clarify and include additional detail regarding WAPA-
UGP's rate implementation and annual update procedures. WAPA-UGP was 
one of the first transmission owners in the UMZ to develop Protocols. 
Therefore, WAPA-UGP updated its Protocols to be more consistent with 
the protocols of other transmission owners in the UMZ that were 
developed and approved after WAPA-UGP joined SPP.

Formula Rate for Scheduling, System Control, and Dispatch Service

    WAPA-UGP will continue to use a formula-based rate methodology to 
calculate its annual revenue requirement for Scheduling, System 
Control, and Dispatch Service (SSCD), provided under Rate Schedule 
WAUGP-AS1 for the SPP UMZ. This rate schedule also includes 
transmission facilities in the WAUW.
    SSCD is required to schedule the movement of power through, out of, 
within, or into the SPP and/or WAUW Balancing Authority Area(s). WAPA-
UGP's annual revenue requirement for SSCD is utilized by SPP to 
calculate the regional SPP Schedule 1 rate for the UMZ. WAPA-UGP's 
annual revenue requirement for SSCD is derived by annualizing WAPA-
UGP's applicable transmission-related annual costs associated with the 
provision of SSCD service, including operation and maintenance, 
interest, administrative and general costs, and depreciation. Estimates 
are calculated on a forward-looking basis by using projections to 
determine applicable transmission-related costs associated with SSCD 
for the upcoming year, with a true-up in a subsequent year, to be 
provided to SPP for inclusion in Schedule 1 under the SPP Tariff.
    WAPA-UGP will true-up the cost estimates with WAPA-UGP's actual 
costs. Revenue collected in excess of WAPA-UGP's actual net revenue 
requirement will be returned to customers through a credit against a

[[Page 42389]]

revenue requirement in a subsequent year. Actual revenues that are less 
than the net revenue requirement would likewise be recovered in a 
subsequent year. The true-up procedure will ensure that WAPA-UGP will 
recover no more and no less than the actual costs for the year. WAPA-
UGP included additional information regarding implementation and annual 
updates for SSCD in its revised Protocols.

Formula Rate for Regulation and Frequency Response Service

    WAPA-UGP will continue to use a formula-based rate methodology for 
Regulation and Frequency Response Service (Regulation) for the WAUW, 
provided under Rate Schedule WAUW-AS3. WAPA-UGP provides Regulation and 
Frequency Response Service in the WAUW as the BA. Regulation and 
Frequency Response Service in the WAUW is provided primarily by Corps 
facilities. Under the formula rate methodology, the Corps' generation 
fixed charge rate (in percent) is applied to the net plant investment 
of the Corps generation to derive an annual Corps generation cost. This 
cost is divided by the capacity at the plants to derive a dollar-per-
megawatt amount for Corps-installed capacity ($/MW-year). This dollar-
per-megawatt amount is applied to the capacity of Corps generation 
reserved for Regulation and Frequency Response Service in the WAUW, 
producing the annual Corps generation cost for this service. WAPA-UGP's 
annual revenue requirement is recovered under the SPP Tariff under Rate 
Schedule WAUW-AS3.
    Regulation and Frequency Response Service is necessary to provide 
for the continuous balancing of resources, generation, and interchange 
with load and for maintaining scheduled interconnection frequency at 60 
cycles per second (60 Hz). Regulation is accomplished by committing on-
line generation whose output is raised or lowered, predominantly 
through the use of automatic generating control equipment, as 
necessary, to follow the moment-by-moment changes in load. The 
obligation to maintain this balance between resources and load lies 
with the WAPA-UGP as the WAUW operator. The SPP Transmission Customer 
must either purchase this service from SPP or make alternative 
comparable arrangements pursuant to the SPP Tariff to satisfy its 
Regulation obligation. WAPA-UGP's annual revenue requirement for 
Regulation will be used by SPP to calculate the WAUW charges for 
Regulation. WAPA-UGP included additional information regarding 
implementation and annual updates for Regulation in its revised 
Protocols.
    WAPA-UGP will true-up the cost estimates with WAPA-UGP's actual 
costs. Revenue collected in excess of WAPA-UGP's actual net revenue 
requirement will be returned through a credit in a subsequent year. 
Actual revenues that are less than the net revenue requirement would 
likewise be recovered in a subsequent year. The true-up procedure will 
ensure that WAPA-UGP will recover no more and no less than the actual 
costs for the year.
    WAPA-UGP supports the installation of renewable sources of energy 
but recognizes that certain operational constraints exist in managing 
the significant fluctuations that are a normal part of their operation. 
When WAPA-UGP purchases power resources to provide Regulation to 
intermittent resources serving load within WAPA-UGP's WAUW, costs for 
these regulation resources will become part of WAPA's Regulation 
revenue requirement, which will be billed by SPP, as the Transmission 
Provider, to a SPP Transmission Customer along with the associated 
transmission service provided by SPP under the SPP Tariff. However, 
WAPA-UGP will not regulate for the difference between the output of an 
intermittent resource located within WAPA-UGP's WAUW and a delivery 
schedule from that generator serving load located outside of WAPA-UGP's 
WAUW. Intermittent resources serving load outside WAPA-UGP's WAUW will 
be required to be pseudo-tied or dynamically scheduled to another 
Balancing Authority Area.
    An intermittent resource, for the limited purpose of this rate 
schedule, is an electric generator that is not dispatchable and cannot 
store its fuel source and, therefore, cannot respond to changes in 
demand or respond to transmission security constraints.

Formula Rate for Energy Imbalance Service

    WAPA-UGP will continue to use its current formula rate calculation 
methodology for Energy Imbalance Service (Energy Imbalance), which is 
provided under Rate Schedule WAUW-AS4. This rate schedule addresses 
Energy Imbalance associated with UGP's WAUW in the Western 
Interconnection. WAPA-UGP also revised Rate Schedule WAUW-AS4 to 
accommodate participation in a Western Interconnection energy imbalance 
service market by WAPA-UGP as the BA. WAPA-UGP is providing additional 
information regarding implementation and annual updates for Energy 
Imbalance in its revised Protocols.
    Energy Imbalance Service is provided when a difference occurs 
between the scheduled and the actual delivery of energy to a load 
located within WAPA-UGP's WAUW over a single hour (or different 
dispatch interval for energy imbalance service market, if applicable). 
Given the SPP Integrated Marketplace does not extend into the Western 
Interconnection, WAPA-UGP as the BA, will offer to provide Energy 
Imbalance Service in the WAUW at the request of SPP, if it is capable 
of doing so, from its own resources or from resources available to it 
including possible participation in a Western Interconnection energy 
imbalance market. SPP is the Transmission Provider for the eligible 
WAPA-UGP facilities transferred to the functional control of SPP in the 
WAUW. Energy Imbalance Service is needed when transmission service is 
provided by SPP and used to serve load within the WAUW, or when a 
difference occurs between the expected and actual delivery of energy 
to/from the WAUW over a single hour (or different dispatch interval for 
energy imbalance service market, if applicable) in the event that WAPA-
UGP participates in a Western Interconnection energy imbalance service 
market in the WAUW as the BA. Energy Imbalance Service in the WAUW will 
be billed by SPP to the SPP Transmission Customer along with the 
associated transmission service provided by SPP. The SPP Transmission 
Customer must either purchase this service from SPP, or make 
alternative comparable arrangements pursuant to the SPP Tariff to 
satisfy its Energy Imbalance Service Obligation.
    The SPP Transmission Customer will incur a charge for either hourly 
energy imbalances under this Schedule, WAUW-AS4, or hourly generator 
imbalances under Rate Schedule WAUW-AS7 for imbalances occurring during 
the same hour, but not both, unless the imbalances aggravate rather 
than offset each other.
    This Rate Order puts in place two options for how Energy Imbalance 
Service in the WAUW may be provided:
    (A) In the event that WAPA-UGP does not participate in a Western 
Interconnection energy imbalance market in the WAUW as the BA, or such 
energy imbalance market is unable to provide the total energy imbalance 
requirements for certain loads and generation within the Balancing 
Authority Area:
    The rate for service will be based up deviation bands as follows: 
(i) Deviations within +/-1.5 percent (with a minimum of 2 MW) of the 
scheduled transaction to be applied hourly to any

[[Page 42390]]

energy imbalance that occurs as a result of the SPP Transmission 
Customer's scheduled transaction(s) will be netted on a monthly basis 
and settled financially, at the end of the month, at 100 percent of the 
average incremental cost for the month; (ii) deviations greater than +/
-1.5 percent up to 7.5 percent (or greater than 2 MW up to 10 MW) of 
the scheduled transaction(s) to be applied hourly to any energy 
imbalance that occurs as a result of the SPP Transmission Customer's 
scheduled transaction(s) will be settled financially, at the end of 
each month, at a charge of 110 percent of incremental cost when energy 
taken by the SPP Transmission Customer in a schedule hour is greater 
than the energy scheduled or a credit of 90 percent of incremental cost 
when energy taken by a SPP Transmission Customer in a schedule hour is 
less than the scheduled amount; and (iii) deviations greater than +/-
7.5 percent (or 10 MW) of the scheduled transaction to be applied 
hourly to any energy imbalance that occurs as a result of the SPP 
Transmission Customer's scheduled transaction(s) will be settled at 125 
percent of WAPA-UGP's incremental cost when energy taken by the SPP 
Transmission Customer in a schedule hour that is greater than the 
energy scheduled, or 75 percent of WAPA-UGP's incremental cost when 
energy taken by a SPP Transmission Customer is less than the scheduled 
amount.
    WAPA-UGP's incremental cost will be based on a representative 
hourly energy index or combination of indexes. The index to be used, or 
any change to the index, will be posted on the applicable SPP website 
and WAPA-UGP's OASIS at least 30 days before use for determining the 
WAPA-UGP incremental cost and will not be changed more often than once 
per year unless WAPA-UGP determines that the existing index is no 
longer a reliable price index.
    (B) In the event that WAPA-UGP participates in a Western 
Interconnection energy imbalance market in the WAUW as the BA: Charges 
to the SPP Transmission Customer will reflect only the pass-through of 
the applicable charges associated with the Western Interconnection 
energy imbalance service market assessed to WAPA-UGP as the WAUW BA for 
embedded load and/or generation in the WAUW of such SPP Transmission 
Customer that does not make adequate alternate arrangements in such 
Western Interconnection energy imbalance service market or other 
alternative comparable arrangements pursuant to the SPP Tariff to 
satisfy its Energy Imbalance Service obligation.
    WAPA-UGP will post notice on the applicable SPP website and WAPA-
UGP's OASIS, and also notify existing SPP Transmission Customers, at 
least 30 days before WAPA-UGP participates in a Western Interconnection 
energy imbalance service market, as the BA. WAPA-UGP will also post 
information related to the charges assessed by the market operator for 
Energy Imbalance Service in the WAUW under such Western Interconnection 
energy imbalance service market.
    WAPA-UGP will follow Option A above beginning on October 1, 2020. 
WAPA-UGP will follow Option B above in the event that WAPA-UGP 
participates in a Western Interconnection energy imbalance market.

Formula Rate for Generator Imbalance Service

    WAPA-UGP will continue to use its current formula rate calculation 
methodology for Generator Imbalance Service (Generator Imbalance), 
which is provided under Rate Schedule WAUW-AS7. This rate schedule 
addresses Generator Imbalance associated with WAPA-UGP's WAUW in the 
Western Interconnection. WAPA-UGP also changed Rate Schedule WAUW-AS7 
to accommodate participation in a Western Interconnection energy 
imbalance market by WAPA-UGP as the BA. WAPA-UGP is providing 
additional information regarding implementation and annual updates for 
Generator Imbalance in its revised Protocols.
    Generator Imbalance Service is provided when a difference occurs 
between the output of a generator located within WAPA-UGP's WAUW and a 
delivery schedule from that generator to: (1) Another Balancing 
Authority Area or (2) a load within WAPA-UGP'S WAUW over a single hour 
(or different dispatch interval for energy imbalance service market, if 
applicable). Given the SPP Integrated Marketplace does not extend into 
the Western Interconnection, WAPA-UGP, as the BA, will offer to provide 
this service at the request of SPP, if it is capable of doing so, from 
its own resources or resources available to it, including possible 
participation in a Western Interconnection energy imbalance service 
market. SPP is the Transmission Provider for the eligible WAPA-UGP 
facilities transferred to the functional control of SPP in the WAUW. 
Generator Imbalance Service is needed when transmission service is 
provided by SPP and used to deliver energy from a generator located 
within the WAUW, or when a difference occurs between the expected and 
actual delivery of energy to/from the WAUW over a single hour (or 
different dispatch interval for energy imbalance service market, if 
applicable) in the event that WAPA-UGP participates in a Western 
Interconnection energy imbalance service market in the WAUW as the BA. 
Generator Imbalance Service in the WAUW will be billed by SPP to the 
SPP Transmission Customer along with the associated transmission 
service. The SPP Transmission Customer must either purchase this 
service from SPP, or make alternative comparable arrangements pursuant 
to the SPP Tariff, to satisfy its Generator Imbalance Service 
obligation. The SPP Transmission Customer will incur a charge for 
either hourly generator imbalances under this rate schedule, WAUW-AS7, 
or hourly energy imbalances under Rate Schedule WAUW-AS4 for imbalances 
occurring during the same hour, but not both, unless the imbalances 
aggravate rather than offset each other.
    WAPA-UGP supports the installation of renewable sources of energy 
but recognizes that certain operational constraints exist in managing 
the significant fluctuations that are a normal part of their operation. 
WAPA-UGP has marketed the maximum practical amount of power from each 
of its projects, leaving little or no flexibility for provision of 
additional power services. Consequently, WAPA-UGP will not regulate for 
the difference between the output of an intermittent generator located 
within the WAUW and a delivery schedule from that generator serving 
load located outside of the WAUW. Intermittent resources serving load 
outside WAPA-UGP's WAUW will be required to be pseudo-tied or 
dynamically scheduled to another Balancing Authority Area.
    An intermittent resource, for the limited purpose of this rate 
schedule, is an electric generator that is not dispatchable and cannot 
store its fuel source and, therefore, cannot respond to changes in 
system demand or respond to transmission security constraints.
    This Rate Order puts in place two options for how Generator 
Imbalance Service in the WAUW may be provided:
    (A) In the event that WAPA-UGP does not participate in a Western 
Interconnection energy imbalance service market in the WAUW as the BA, 
or such energy imbalance market is unable to provide the total energy 
imbalance requirements for certain loads and generation within the 
Balancing Authority Area:
    The rate for service will be based on deviation bands as follows: 
(i) For

[[Page 42391]]

deviations within +/-1.5 percent (with a minimum of 2 MW) of the 
scheduled transaction to be applied hourly to any generator imbalance 
that occurs as a result of the SPP Transmission Customer's scheduled 
transaction(s) will be netted on a monthly basis and settled 
financially, at the end of the month, at 100 percent of the average 
incremental cost; (ii) deviations greater than +/-1.5 percent up to 7.5 
percent (or greater than 2 MW up to 10 MW) of the scheduled transaction 
to be applied hourly to any generator imbalance that occurs as a result 
of the SPP Transmission Customer's scheduled transaction(s) will be 
settled financially, at the end of each month, as a charge of 110 
percent of incremental cost when energy delivered in a schedule hour 
from the generation resource is less than the energy scheduled or a 
credit of 90 percent of the incremental cost when energy delivered from 
the generation resource is greater than the scheduled amount; and (iii) 
deviations greater than +/-7.5 percent (or 10 MW) of the scheduled 
transaction to be applied hourly to any generator imbalance that occurs 
as a result of the SPP Transmission Customer's scheduled transaction(s) 
will be settled at 125 percent of WAPA-UGP's highest incremental cost 
for the day when energy delivered in a schedule hour is less than the 
energy scheduled or 75 percent of WAPA-UGP's lowest daily incremental 
cost when energy delivered from the generation resource is greater than 
the scheduled amount. An intermittent resource will be exempt from this 
deviation band and will pay the deviation band charges for all 
deviations greater than the larger of 1.5 percent or 2 MW.
    Deviations from scheduled transactions responding to directives by 
the Transmission Provider, a BA, or a reliability coordinator will not 
be subject to the deviation bands identified above and, instead, will 
be settled financially at the end of the month at 100 percent of 
incremental cost. Such directives may include instructions to correct 
frequency decay, respond to a reserve sharing event, or change output 
to relieve congestion.
    WAPA-UGP's incremental cost will be based on a representative 
hourly energy index or combination of indexes. The index to be used, or 
any change to the index, will be posted on the applicable SPP website 
and WAPA-UGP's OASIS at least 30 days before use for determining the 
WAPA-UGP incremental cost and will not be changed more often than once 
per year unless WAPA-UGP determines that the existing index is no 
longer a reliable price index.
    (B) In the event that WAPA-UGP participates in a Western 
Interconnection energy imbalance service market in the WAUW as the BA: 
Charges to the SPP Transmission Customer will reflect only the pass-
through of the applicable charges associated with the Western 
Interconnection energy imbalance service market assessed to WAPA-UGP as 
the WAUW BA for embedded load and/or generation in the WAUW of such SPP 
Transmission Customer that does not make adequate alternate 
arrangements in such Western Interconnection energy imbalance service 
market or other alternative comparable arrangements pursuant to the SPP 
Tariff to satisfy its Generator Imbalance Service Obligation.
    WAPA-UGP will post notice on the applicable SPP website and WAPA-
UGP's OASIS, and also notify existing Transmission Customers, at least 
30 days before WAPA-UGP participates in a Western Interconnection 
energy imbalance service market, as the BA. WAPA-UGP will also post 
information related to the charges assessed by the market operator for 
Generator Imbalance Service in the WAUW under such Western 
Interconnection energy imbalance service market.
    WAPA-UGP will follow Option A above beginning on October 1, 2020. 
WAPA-UGP will follow Option B above in the event that WAPA-UGP 
participates in a Western Interconnection energy imbalance service 
market.

Formula Rates for Operating Reserves Service--Spinning and Supplemental

    WAPA-UGP will continue to use its current formula rate calculation 
methodologies for Operating Reserve--Spinning Reserve Service and 
Operating Reserve--Supplemental Reserve Service (collectively, 
Operating Reserves) provided under Rate Schedules WAUW-AS5 and WAUW-
AS6, respectively, with changes to the rate formulas to incorporate 
costs associated with its current reserve sharing group membership. 
These rate schedules address Operating Reserves associated with WAPA-
UGP's WAUW in the Western Interconnection. WAPA-UGP changed the rate 
formulas to incorporate costs associated with its current reserve 
sharing group membership. In addition, WAPA-UGP included 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, WAPA-UGP will 
continue to provide Operating Reserves in the WAUW as the BA. WAPA-UGP 
utilizes the reserve requirement of the reserve sharing group of which 
WAPA-UGP is currently a member for its transmission system in the 
Western Interconnection.
    WAPA-UGP's annual cost of generation for Reserve Services is 
determined by multiplying the Corps' generation fixed charge rate (in 
percent) by the net plant investment of the Corps generation producing 
an annual Corps generation cost. This cost is divided by the capacity 
at the plants to derive a dollar-per-megawatt amount for Corps 
installed capacity ($/MW-year). This dollar-per-megawatt amount is then 
applied to the capacity of Corps generation reserved for Reserve 
Services in the WAUW, producing the annual Corps generation cost to 
provide this service. WAPA-UGP's annual revenue requirement for Reserve 
Services is then determined by taking the annual Corps generation cost 
to provide this service and adding costs associated with the current 
reserve sharing group, if applicable. WAPA-UGP's annual revenue 
requirement will be recovered under the SPP Tariff. This rate design 
recovers only WAPA-UGP's revenue requirement associated with Reserve 
Services. The Reserve Services will apply to both load and generation 
in the WAUW (i.e., transmission service for loads in the WAUW and 
transmission service for generation deliveries out of the WAUW).
    WAPA-UGP will true-up the cost estimates with WAPA-UGP's actual 
costs. Revenue collected in excess of WAPA-UGP's actual net revenue 
requirement will be returned through a credit in a subsequent year. 
Actual revenues that are less than the net revenue requirement would 
likewise be recovered in a subsequent year. The true-up procedure will 
ensure that WAPA-UGP will recover no more and no less than the actual 
costs for the year.

Spinning Reserves

    Operating Reserve-Spinning Reserve Service (Spinning Reserves) is 
needed to serve load immediately in the event of a system contingency. 
Spinning Reserves may be provided by generating units that are on-line 
and loaded at less than maximum output. Given the SPP Integrated 
Marketplace does not extend into the Western Interconnection, WAPA-UGP, 
as the BA, will offer to provide Spinning Reserves, if available, at 
the request of SPP as the Transmission Provider in the WAUW. Spinning 
Reserves in the WAUW will be billed by SPP to the SPP

[[Page 42392]]

Transmission Customer along with the associated transmission service 
provided by SPP. The SPP Transmission Customer must either purchase 
this service from SPP or make alternative comparable arrangements 
pursuant to the SPP Tariff to satisfy its Spinning Reserves obligation. 
WAPA-UGP's annual revenue requirement for Spinning Reserves will be 
utilized by SPP to calculate the WAUW charges for Spinning Reserves.
    If resources are not available from a WAPA-UGP resource, WAPA-UGP, 
at the request of SPP as the Transmission Provider, will offer to 
purchase the Spinning Reserves and pass through the costs, plus an 
amount for administration, to SPP for the SPP Transmission Customer.
    In the event that Spinning Reserves are called upon for emergency 
use, the SPP Transmission Customer will be assessed a charge for energy 
used at the prevailing market energy rate in the WAUW. The prevailing 
market energy rate will be based upon a representative hourly energy 
index or combination of indexes. The index to be used, or any change to 
the index, will be posted on the applicable SPP website and WAPA-UGP's 
OASIS at least 30 days before use for determining the prevailing market 
energy rate and will not be changed more often than once per year 
unless WAPA-UGP determines that the existing index is no longer a 
reliable price index. The SPP Transmission Customer would be 
responsible for providing transmission service to get the Spinning 
Reserves to its destination.

Supplemental Reserves

    Operating Reserve-Supplemental Reserve Service (Supplemental 
Reserves) is needed to serve load in the event of a system contingency; 
however, it is not available immediately to serve load but rather 
within a short period of time.
    Supplemental Reserves may be provided by generating units that are 
on-line but unloaded, by quick-start generation, or by interruptible 
load. Given the SPP Integrated Marketplace does not extend into the 
Western Interconnection, WAPA-UGP, as the BA, will offer to provide 
Supplemental Reserves, if available, at the request of SPP as the 
Transmission Provider, in the WAUW. Operating Reserve-Supplemental 
Reserve Service in the WAUW will be billed by SPP to the SPP 
Transmission Customer along with the associated transmission service 
provided by SPP. The SPP Transmission Customer must either purchase 
this service from SPP or make alternative comparable arrangements 
pursuant to the SPP Tariff to satisfy its Supplemental Reserves 
obligation. WAPA-UGP's annual revenue requirement for Supplemental 
Reserves will be utilized by SPP to calculate the WAUW charges for 
Supplemental Reserves.

Comments

    WAPA received one oral comment and one comment letter during the 
public consultation and comment period. The comments have been 
paraphrased, where appropriate, without compromising the meaning of the 
comments.
    Comment: The customer notes its appreciation of the efforts WAPA is 
making to increase transparency of the formula rate template, and that 
its comments are generally centered on transparency. As such, the 
customer requests WAPA adjust the formula rate template to ensure 
transparency for all stakeholders. Specifically, this includes 
financial and source document data transparency and transparency on the 
website.
    Response: WAPA has reviewed the Formula Rate Templates and all 
suggestions provided by the customer regarding transparency. WAPA has 
updated the Formula Rate Templates to address the customer's comments. 
These template changes include additional footnotes, links, references, 
and other suggestions provided by the customer. WAPA has included the 
additional financial and source document data on OASIS at: http://www.oasis.oati.com/wapa/index.html.

Certification of Rates

    WAPA's Administrator certified that the Provisional Formula Rates 
for P-SMB--ED under Rate Schedules WAUGP-ATRR, WAUGP-AS1, WAUW-AS3, 
WAUW-AS4, WAUW-AS5, WAUW-AS6, and WAUW-AS7 are the lowest possible 
rates, consistent with sound business principles. The Provisional 
Formula Rates were developed following administrative policies and 
applicable laws.

Availability of Information

    Information about this rate adjustment, including the customer Rate 
Brochure, comments, letters, memorandums, and other supporting 
materials that were used to develop the Provisional Formula Rates, is 
available for inspection and copying at the Upper Great Plains Regional 
Office, located at 2900 4th Avenue North, Billings, Montana. Many of 
these documents are also available online at the following locations: 
(1) WAPA-UGP's OASIS at: http://www.oasis.oati.com/wapa/index.html; (2) 
WAPA-UGP's Rates web page at: https://www.wapa.gov/regions/UGP/rates/Pages/rates.aspx; and (3) the ``Western Area Power Administration UGP 
Information'' link on SPP's Member Related Postings website at: http://opsportal.spp.org/OASIS/Directory/Member%20Related%20Postings.

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.\5\ A copy of the categorical exclusion determination 
is available on WAPA's website at: https://www.wapa.gov/regions/UGP/Environment/Pages/environment.aspx.
---------------------------------------------------------------------------

    \5\ The determination was done in compliance with the National 
Environmental Policy Act (NEPA) of 1969, as amended, 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).
---------------------------------------------------------------------------

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 Rates 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-188. The rates will remain in effect on an interim 
basis until: (1) FERC confirms and approves them on a final basis; (2) 
subsequent rates are confirmed and approved; or (3) such rates are 
superseded.

    Dated: July 9, 2020.

Bruce J. Walker,
Assistant Secretary for Electricity.

Rate Schedule WAUGP-ATRR
October 1, 2020
(Supersedes Rate Schedule WAUGP-ATRR dated October 1, 2015, through 
September 30, 2020)

[[Page 42393]]

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

ANNUAL TRANSMISSION REVENUE REQUIREMENT FOR TRANSMISSION SERVICE

Effective

    Beginning on October 1, 2020, and remaining in effect through 
September 30, 2025, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the effective date of the 
formula rates will be published in the Federal Register.

Applicable

    Western Area Power Administration-Upper Great Plains Region's 
(Western-UGP) formula based Annual Transmission Revenue Requirement 
(ATRR) for its eligible transmission related facilities included under 
the Southwest Power Pool, Inc. (SPP) Tariff will be calculated using 
the formula outlined below.

Formula Rate

Define:

A = Operation & Maintenance allocated to transmission ($)
B = Depreciation allocated to transmission ($)
C = Interest Expense allocated to transmission ($)
D = Revenue Credits ($)
E = Scheduling, System Control, and Dispatch costs ($)
F = Prior Period True-up ($)

ATRR = A + B + C-D-E + F

    Note: Western-UGP will identify any portion(s) of the ATRR 
eligible for recovery under SPP Schedule 11 pursuant to the SPP 
Tariff in its Rate Formula Template submitted under Attachment H of 
the SPP Tariff.

    A recalculated annual revenue requirement will go into effect every 
January 1 based on the above formula and updated financial data. 
Western-UGP will annually notify SPP and make data and information 
available to interested parties for review and comment related to the 
recalculated annual revenue requirement on or shortly after September 1 
of the preceding year. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP website and Western-
UGP's Open Access Same-Time Information System (OASIS).

Rate Schedule WAUGP-AS1
October 1, 2020
(Supersedes Rate Schedule WAUGP-AS1 dated October 1, 2015, through 
September 30, 2020)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICE

Effective

    Beginning on October 1, 2020, and remaining in effect through 
September 30, 2025, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the effective date of the 
formula rates will be published in the Federal Register.

Applicable

    Scheduling, System Control, and Dispatch Service (SSCD) is required 
to schedule the movement of power through, out of, within, or into the 
Southwest Power Pool, Inc. (SPP) Balancing Authority Area and/or the 
Western Area Power Administration, Upper Great Plains West Balancing 
Authority Area (WAUW). Western Area Power Administration-Upper Great 
Plains Region's (Western-UGP) annual revenue requirement for SSCD will 
be used by SPP to calculate the regional SPP Schedule 1 rate for SPP 
through and out transactions, and also to calculate the zonal SPP 
Schedule 1 rate for the Upper Missouri Zone (UMZ or Zone 19). This rate 
will also be charged by SPP for SPP Transmission Service provided 
within the UMZ in the Western Interconnection.

Formula Rate

Define:

A = Operation & Maintenance for SSCD ($)
B = Administrative and General Expense for SSCD ($)
C = Depreciation for SSCD ($)
D = Taxes Other than Income Taxes for Transmission ($)
E = Allocation of General Plant for SSCD ($)
F = Cost of Capital for SSCD ($)
G = SSCD Revenue from non-Transmission facilities ($)
H = Prior Period True-up ($)

SSCD Annual Revenue Requirement = A + B + C + D + E + F-G + H

    A recalculated annual revenue requirement will go into effect every 
January 1 based on the above formula and updated financial data. 
Western-UGP will annually notify SPP and make data and information 
available to interested parties for review and comment related to the 
recalculated annual revenue requirement on or shortly after September 1 
of the preceding year. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP website and Western-
UGP's Open Access Same-Time Information System (OASIS).

Rate Schedule WAUW-AS3
October 1, 2020
(Supersedes Rate Schedule WAUW-AS3 dated October 1, 2015, through 
September 30, 2020)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

REGULATION AND FREQUENCY RESPONSE SERVICE--WAUW

Effective

    Beginning on October 1, 2020, and remaining in effect through 
September 30, 2025, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the effective date of the 
formula rates will be published in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Regulation and Frequency Response Service (Regulation) is 
necessary to provide for the continuous balancing of resources, 
generation, and interchange with load and for maintaining scheduled 
interconnection frequency at 60 cycles per second (60 Hz). Regulation 
is accomplished by committing on-line generation whose output is raised 
or lowered, predominantly through the use of automatic generating 
control equipment, as necessary, to follow the moment-by-moment changes 
in load. The obligation to maintain this balance between resources and 
load lies with the Western Area Power Administration-Upper Great Plains 
Region (Western-UGP) as the WAUW operator. The SPP Transmission 
Customer must either purchase this service from SPP or make alternative 
comparable arrangements pursuant to the SPP Tariff to satisfy its 
Regulation obligation. Western-UGP's annual revenue requirement for 
Regulation (outlined below) will be used by SPP to calculate the WAUW 
charges for Regulation.
    Western-UGP supports the installation of renewable sources of 
energy but recognizes that certain operational constraints exist in 
managing the significant fluctuations that are a normal part of their 
operation. When Western-UGP purchases power resources to provide 
Regulation to

[[Page 42394]]

intermittent resources serving load within Western-UGP's WAUW, costs 
for these regulation resources will become part of Western's Regulation 
revenue requirement, which will be billed by SPP, as the Transmission 
Provider, to a SPP Transmission Customer along with the associated 
transmission service provided by SPP under the SPP Tariff. However, 
Western-UGP will not regulate for the difference between the output of 
an intermittent resource located within Western-UGP's WAUW and a 
delivery schedule from that generator serving load located outside of 
Western-UGP's WAUW. Intermittent resources serving load outside 
Western-UGP's WAUW will be required to be pseudo-tied or dynamically 
scheduled to another Balancing Authority Area.
    An intermittent resource, for the limited purpose of this Rate 
Schedule, is an electric generator that is not dispatchable and cannot 
store its fuel source and, therefore, cannot respond to changes in 
demand or respond to transmission security constraints.

Formula Rate

Define:

A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%)
B = Corps Generation Net Plant Costs ($)
C = Plant Capacity (kW)
D = Capacity Used for Regulation (kW-year)
E = Capacity Purchases for Regulation ($)
F = Prior Period True-up

Regulation Annual Revenue Requirement = (A * B / C) * D + E + F

    A recalculated revenue requirement will go into effect every 
January 1 based on the above formula and updated financial data. 
Western-UGP will annually notify SPP and make data and information 
available to interested parties for review and comment related to the 
recalculated annual revenue requirement on or shortly after September 1 
of the preceding year. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP website and Western-
UGP's Open Access Same-Time Information System (OASIS).

Rate Schedule WAUW-AS4
October 1, 2020
(Supersedes Rate Schedule WAUW-AS4 dated October 1, 2015, through 
September 30, 2020)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

ENERGY IMBALANCE SERVICE--WAUW

Effective

    Beginning on October 1, 2020, and remaining in effect through 
September 30, 2025, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the effective date of the 
formula rates will be published in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Energy Imbalance Service is provided when a difference occurs 
between scheduled and actual delivery of energy to a load located 
within Western Area Power Administration-Upper Great Plains Region's 
(Western-UGP) WAUW over a single hour (or different dispatch interval 
for energy imbalance service market, if applicable). Given the 
Southwest Power Pool, Inc. (SPP) Integrated Marketplace does not extend 
into the Western Interconnection, Western-UGP, as the Balancing 
Authority, will offer to provide Energy Imbalance Service in the WAUW 
at the request of SPP, if it is capable of doing so, from its own 
resources or from resources available to it including possible 
participation in a Western Interconnection energy imbalance service 
market. SPP is the Transmission Provider for the eligible Western-UGP 
facilities transferred to the functional control of SPP in the WAUW. 
Energy Imbalance Service is needed when transmission service is 
provided by SPP and used to serve load within the WAUW, or when a 
difference occurs between the expected and actual delivery of energy 
to/from the WAUW over a single hour (or different dispatch interval for 
energy imbalance service market, if applicable) in the event that 
Western-UGP participates in a Western Interconnection energy imbalance 
service market in the WAUW as the Balancing Authority. Energy Imbalance 
Service in the WAUW will be billed by SPP to the SPP Transmission 
Customer along with the associated transmission service provided by 
SPP. The SPP Transmission Customer must either purchase this service 
from SPP, or make alternative comparable arrangements pursuant to the 
SPP Tariff to satisfy its Energy Imbalance Service obligation.
    The SPP Transmission Customer will incur a charge for either hourly 
energy imbalances under this Schedule, WAUW-AS4, or hourly generator 
imbalances under Rate Schedule WAUW-AS7 for imbalances occurring during 
the same hour, but not both, unless the imbalances aggravate rather 
than offset each other.

Formula Rate

    (A) In the event that Western-UGP does not participate in a Western 
Interconnection energy imbalance service market in the WAUW as the 
Balancing Authority, or such energy imbalance market is unable to 
provide the total energy imbalance requirements for certain loads and 
generation within the Balancing Authority Area:
    For deviations within +/-1.5 percent (with a minimum of 2 MW) of 
the scheduled transaction to be applied hourly to any energy imbalance 
that occurs as a result of the SPP Transmission Customer's scheduled 
transaction(s) will be netted on a monthly basis and settled 
financially, at the end of the month, at 100 percent of the average 
incremental cost.
    Deviations greater than +/-1.5 percent up to 7.5 percent (or 
greater than 2 MW up to 10 MW) of the scheduled transaction to be 
applied hourly to any energy imbalance that occurs as a result of the 
SPP Transmission Customer's scheduled transaction(s) will be settled 
financially, at the end of each month. When energy taken in a schedule 
hour is greater than the energy scheduled, the charge is 110 percent of 
incremental cost. When energy taken is less than the scheduled amount, 
the credit is 90 percent of the incremental cost.
    Deviations greater than +/-7.5 percent (or 10 MW) of the scheduled 
transaction to be applied hourly to any energy imbalance that occurs as 
a result of the SPP Transmission Customer's scheduled transaction(s) 
will be settled at 125 percent of Western-UGP's incremental cost when 
energy taken in a schedule hour is greater than the energy scheduled or 
75 percent of Western- UGP's incremental cost when energy taken by a 
SPP Transmission Customer is less than the scheduled amount.
    Western-UGP's incremental cost will be based upon a representative 
hourly energy index or combination of indexes. The index to be used 
will be posted on the applicable SPP website and Western-UGP's Open 
Access Same-Time Information System (OASIS) at least 30 days before use 
for determining the

[[Page 42395]]

Western-UGP incremental cost and will not be changed more often than 
once per year unless Western-UGP determines that the existing index is 
no longer a reliable price index.
    The pricing and charge for deviations in the above deviation 
bandwidths is as specified above. Data used and the charges resulting 
from using this formula will be posted on the applicable SPP website 
and Western-UGP's OASIS.
    (B) In the event that Western-UGP participates in a Western 
Interconnection energy imbalance service market in the WAUW as the 
Balancing Authority:
    Charges to the SPP Transmission Customer will reflect only the 
pass-through of the applicable charges associated with the Western 
Interconnection energy imbalance service market assessed to Western-UGP 
as the WAUW Balancing Authority for embedded load and/or generation in 
the WAUW of such SPP Transmission Customer that does not make adequate 
alternate arrangements in such Western Interconnection energy imbalance 
service market or other alternative comparable arrangements pursuant to 
the SPP Tariff to satisfy its Energy Imbalance Service obligation.
    Western-UGP will post notice on the applicable SPP website and 
Western-UGP's OASIS, and also notify existing SPP Transmission 
Customers, at least 30 days before Western-UGP participates in a 
Western Interconnection energy imbalance service market, as the 
Balancing Authority. Western-UGP will also post information related to 
the charges assessed by the market operator for Energy Imbalance 
Service in the WAUW under such Western Interconnection energy imbalance 
service market.
    Data used and the charges resulting from using this formula will be 
posted on the applicable SPP website and Western-UGP's OASIS.

Rate Schedule WAUW-AS5
October 1, 2020
(Supersedes Rate Schedule WAUW-AS5 dated October 1, 2015, through 
September 30, 2020)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

OPERATING RESERVE--SPINNING RESERVE SERVICE--WAUW

Effective

    Beginning on October 1, 2020, and remaining in effect through 
September 30, 2025, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the effective date of the 
formula rates will be published in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Operating Reserve-Spinning Reserve Service (Spinning Reserves) 
is needed to serve load immediately in the event of a system 
contingency. Spinning Reserves may be provided by generating units that 
are on-line and loaded at less than maximum output. Given the Southwest 
Power Pool, Inc. (SPP) Integrated Marketplace does not extend into the 
Western Interconnection, Western Area Power Administration-Upper Great 
Plains Region (Western-UGP), as the Balancing Authority, will offer to 
provide Spinning Reserves, if available, at the request of SPP as the 
Transmission Provider in the WAUW. Operating Reserve-Spinning Reserve 
Service in the WAUW will be billed by SPP to the SPP Transmission 
Customer along with the associated transmission service provided by 
SPP. The SPP Transmission Customer must either purchase this service 
from SPP or make alternative comparable arrangements pursuant to the 
SPP Tariff to satisfy its Spinning Reserves obligation. Western-UGP's 
annual revenue requirement for Spinning Reserves (outlined below) will 
be utilized by SPP to calculate the WAUW charges for Spinning Reserves.

Formula Rate

Define:

A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%)
B = Corps Generation Net Plant Costs ($)
C = Plant Capacity (kW)
D = Maximum Load in the WAUW (kW)
E = Maximum Generation in the WAUW (kW)
F = Reserve Sharing Program Requirement based upon Load (%)--See 
Note 1
G = Reserve Sharing Program Requirement based upon Generation (%)--
See Note 2
H = Prior Period True-up
I = Annual cost associated with Western-UGP's current reserve 
sharing group membership

    Note 1: Currently 3% in the Northwest Power Pool (NWPP) Reserve 
Sharing Program.


    Note 2: Currently 3% in the NWPP Reserve Sharing Program.

Spinning Reserves Annual Revenue Requirement = (A * B/C) * ((D * F) + 
(E * G)) + H + I

    A recalculated revenue requirement will go into effect every 
January 1 based on the above formula and updated financial, load/
generation, and Reserve Sharing Program requirements data. Western-UGP 
will annually notify SPP and make data and information available to 
interested parties for review and comment related to the recalculated 
annual revenue requirement on or shortly after September 1 of the 
preceding year. Data used and the charges resulting from using this 
formula will be posted on the applicable SPP website and Western-UGP's 
Open Access Same-Time Information System (OASIS).
    If resources are not available from a Western-UGP resource, 
Western-UGP, at the request of SPP as the Transmission Provider, will 
offer to purchase the Spinning Reserves and pass through the costs, 
plus an amount for administration, to SPP for the SPP Transmission 
Customer.
    In the event that Spinning Reserves are called upon for emergency 
use, the SPP Transmission Customer will be assessed a charge for energy 
used at the prevailing market energy rate in the WAUW. The prevailing 
market energy rate will be based upon a representative hourly energy 
index or combination of indexes. The index to be used will be posted on 
the applicable SPP website and Western UGP's OASIS at least 30 days 
before use for determining the prevailing market energy rate and will 
not be changed more often than once per year unless Western-UGP 
determines that the existing index is no longer a reliable price index. 
The SPP Transmission Customer would be responsible for providing 
transmission service to get the Spinning Reserves to its destination.

Rate Schedule WAUW-AS6
October 1, 2020
(Supersedes Rate Schedule WAUW-AS6 dated October 1, 2015, through 
September 30, 2020)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

OPERATING RESERVE--SUPPLEMENTAL RESERVE SERVICE--WAUW

Effective

    Beginning on October 1, 2020, and remaining in effect through 
September 30, 2025, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the effective date of the 
formula rates will be published in the Federal Register.

[[Page 42396]]

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Operating Reserve-Supplemental Reserve Service (Supplemental 
Reserves) is needed to serve load in the event of a system contingency; 
however, it is not available immediately to serve load but rather 
within a short period of time.
    Supplemental Reserves may be provided by generating units that are 
on-line but unloaded, by quick-start generation, or by interruptible 
load. Given the Southwest Power Pool, Inc. (SPP) Integrated Marketplace 
does not extend into the Western Interconnection, Western Area Power 
Administration-Upper Great Plains Region (Western-UGP), as the 
Balancing Authority, will offer to provide Supplemental Reserves, if 
available, at the request of SPP as the Transmission Provider, in the 
WAUW. Operating Reserve-Supplemental Reserve Service in the WAUW will 
be billed by SPP to the SPP Transmission Customer along with the 
associated transmission service provided by SPP. The SPP Transmission 
Customer must either purchase this service from SPP or make alternative 
comparable arrangements pursuant to the SPP Tariff to satisfy its 
Supplemental Reserves obligation. Western-UGP's annual revenue 
requirement for Supplemental Reserves (outlined below) will be utilized 
by SPP to calculate the WAUW charges for Supplemental Reserves.

Formula Rate

Define:

A = U.S. Army Corps of Engineers (Corps) Fixed Charge Rate (%)
B = Corps Generation Net Plant Costs ($)
C = Plant Capacity (kW)
D = Maximum Load in the WAUW (kW)
E = Maximum Generation in the WAUW (kW)
F = Reserve Sharing Program Requirement based upon Load (%)--See 
Note 1
G = Reserve Sharing Program Requirement based upon Generation (%)--
See Note 2
H = Prior Period True-up
I = Annual cost associated with Western-UGP's current reserve 
sharing group membership

    Note 1: Currently 3% in the Northwest Power Pool (NWPP) Reserve 
Sharing Program.


    Note 2: Currently 3% in the NWPP Reserve Sharing Program.

Supplemental Reserves Annual Revenue Requirement = (A * B/C) * ((D * F) 
+ (E * G)) + H + I

    A recalculated revenue requirement will go into effect every 
January 1 based on the above formula and updated financial, load/
generation, and Reserve Sharing Program requirements data. Western-UGP 
will annually notify SPP and make data and information available to 
interested parties for review and comment related to the recalculated 
annual revenue requirement on or shortly after September 1 of the 
preceding year. Data used and the charges resulting from using this 
formula will be posted on the applicable SPP website and Western-UGP's 
Open Access Same-Time Information System (OASIS).
    If resources are not available from a Western-UGP resource, 
Western-UGP, at the request of SPP as the Transmission Provider, will 
offer to purchase the Supplemental Reserves and pass through the costs, 
plus an amount for administration, to SPP for the SPP Transmission 
Customer.
    In the event Supplemental Reserves are called upon for emergency 
use, the SPP Transmission Customer will be assessed a charge for energy 
used at the prevailing market energy rate in the WAUW. The prevailing 
market energy rate will be based upon a representative hourly energy 
index or combination of indexes. The index to be used will be posted on 
the applicable SPP website and Western-UGP's OASIS at least 30 days 
before use for determining the prevailing market energy rate and will 
not be changed more often than once per year unless Western-UGP 
determines that the existing index is no longer a reliable price index. 
The SPP Transmission Customer would be responsible for providing 
transmission service to get the Supplemental Reserves to its 
destination.

Rate Schedule WAUW-AS7
October 1, 2020
(Supersedes Rate Schedule WAUW-AS7 dated October 1, 2015, through 
September 30, 2020)

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

UPPER GREAT PLAINS REGION PICK-SLOAN MISSOURI BASIN PROGRAM--EASTERN 
DIVISION

GENERATOR IMBALANCE SERVICE--WAUW

Effective

    Beginning on October 1, 2020, and remaining in effect through 
September 30, 2025, or until superseded by another rate schedule, 
whichever occurs earlier. Notification of the effective date of the 
formula rates will be published in the Federal Register.

Applicable

    This Rate Schedule applies to the Western Area Power 
Administration, Upper Great Plains West Balancing Authority Area 
(WAUW). Generator Imbalance Service is provided when a difference 
occurs between the output of a generator located within Western Area 
Power Administration-Upper Great Plains Region's (Western-UGP) WAUW and 
a delivery schedule from that generator to (1) another Balancing 
Authority Area or (2) a load within Western-UGP's WAUW over a single 
hour (or different dispatch interval for energy imbalance service 
market, if applicable). Given the Southwest Power Pool, Inc. (SPP) 
Integrated Marketplace does not extend into the Western 
Interconnection, Western-UGP, as the Balancing Authority, will offer to 
provide this service at the request of SPP, if it is capable of doing 
so, from its own resources or from resources available to it including 
possible participation in a Western Interconnection energy imbalance 
service market. SPP is the Transmission Provider for the eligible 
Western-UGP facilities transferred to the functional control of SPP in 
the WAUW. Generator Imbalance Service is needed when transmission 
service is provided by SPP and used to deliver energy from a generator 
located within the WAUW, or when a difference occurs between the 
expected and actual delivery of energy to/from the WAUW over a single 
hour (or different dispatch interval for energy imbalance service 
market, if applicable) in the event that Western-UGP participates in a 
Western Interconnection energy imbalance service market in the WAUW as 
the Balancing Authority. Generator Imbalance Service in the WAUW will 
be billed by SPP to the SPP Transmission Customer along with the 
associated transmission service provided by SPP. The SPP Transmission 
Customer must either purchase this service from SPP or make alternative 
comparable arrangements pursuant to the SPP Tariff, to satisfy its 
Generator Imbalance Service obligation. The SPP Transmission Customer 
will incur a charge for either hourly generator imbalances under this 
Schedule, WAUW-AS7, or hourly energy imbalances under Rate Schedule 
WAUW-AS4 for imbalances occurring during the same hour, but not both, 
unless the imbalances aggravate rather than offset each other.
    Western-UGP supports the installation of renewable sources of 
energy but recognizes that certain operational constraints exist in

[[Page 42397]]

managing the significant fluctuations that are a normal part of their 
operation. Western-UGP has marketed the maximum practical amount of 
power from each of its projects, leaving little or no flexibility for 
provision of additional power services. Consequently, Western-UGP will 
not regulate for the difference between the output of an intermittent 
resource located within the WAUW and a delivery schedule from that 
generator serving load located outside of the WAUW. Intermittent 
resources serving load outside Western-UGP's WAUW will be required to 
be pseudo-tied or dynamically scheduled to another Balancing Authority 
Area.
    An intermittent resource, for the limited purpose of this Rate 
Schedule, is an electric generator that is not dispatchable and cannot 
store its fuel source and, therefore, cannot respond to changes in 
demand or respond to transmission security constraints.

Formula Rate

    (A) In the event that Western-UGP does not participate in a Western 
Interconnection energy imbalance service market in the WAUW as the 
Balancing Authority, or such energy imbalance market is unable to 
provide the total energy imbalance requirements for certain loads and 
generation within the Balancing Authority Area:
    For deviations within +/-1.5 percent (with a minimum of 2 MW) of 
the scheduled transaction to be applied hourly to any generator 
imbalance that occurs as a result of the SPP Transmission Customer's 
scheduled transaction(s) will be netted on a monthly basis and settled 
financially, at the end of the month, at 100 percent of the average 
incremental cost.
    Deviations greater than +/-1.5 percent up to 7.5 percent (or 
greater than 2 MW up to 10 MW) of the scheduled transaction to be 
applied hourly to any generator imbalance that occurs as a result of 
the SPP Transmission Customer's scheduled transaction(s) will be 
settled financially, at the end of each month. When energy delivered in 
a schedule hour from the generation resource is less than the energy 
scheduled, the charge is 110 percent of incremental cost. When energy 
delivered from the generation resource is greater than the scheduled 
amount, the credit is 90 percent of the incremental cost.
    Deviations greater than +/-7.5 percent (or 10 MW) of the scheduled 
transaction to be applied hourly to any generator imbalance that occurs 
as a result of the SPP Transmission Customer's scheduled transaction(s) 
will be settled at 125 percent of Western-UGP's highest incremental 
cost for the day when energy delivered in a schedule hour is less than 
the energy scheduled or 75 percent of Western-UGP's lowest daily 
incremental cost when energy delivered from the generation resource is 
greater than the scheduled amount. As an exception, an intermittent 
resource will be exempt from this deviation band and will pay the 
deviation band charges for all deviations greater than the larger of 
1.5 percent or 2 MW.
    Deviations from scheduled transactions responding to directives by 
the Transmission Provider, a Balancing Authority, or a reliability 
coordinator will not be subject to the deviation bands identified above 
and, instead, will be settled financially, at the end of the month, at 
100 percent of incremental cost. Such directives may include 
instructions to correct frequency decay, respond to a reserve sharing 
event, or change output to relieve congestion.
    Western-UGP's incremental cost will be based upon a representative 
hourly energy index or combination of indexes. The index to be used 
will be posted on the applicable SPP website and Western-UGP's Open 
Access Same-Time Information System (OASIS) at least 30 days before use 
for determining the Western-UGP incremental cost and will not be 
changed more often than once per year unless Western-UGP determines 
that the existing index is no longer a reliable price index.
    The pricing and charge for deviations in the deviation bandwidths 
is as specified above. Data used and the charges resulting from using 
this formula will be posted on the applicable SPP website and Western-
UGP's OASIS.
    (B) In the event that Western-UGP participates in a Western 
Interconnection energy imbalance service market in the WAUW as the 
Balancing Authority:
    Charges to the SPP Transmission Customer will reflect only the 
pass-through of the applicable charges associated with the Western 
Interconnection energy imbalance service market assessed to Western-UGP 
as the WAUW Balancing Authority for embedded load and/or generation in 
the WAUW of such SPP Transmission Customer that does not make adequate 
alternate arrangements in such Western Interconnection energy imbalance 
service market or other alternative comparable arrangements pursuant to 
the SPP Tariff to satisfy its Generator Imbalance Service obligation.
    Western-UGP will post notice on the applicable SPP website and 
Western-UGP's OASIS, and also notify existing Transmission Customers, 
at least 30 days before Western-UGP participates in a Western 
Interconnection energy imbalance service market, as the Balancing 
Authority. Western-UGP will also post information related to the 
charges assessed by the market operator for Generator Imbalance Service 
in the WAUW under such Western Interconnection energy imbalance service 
market.
    Data used and the charges resulting from using this formula will be 
posted on the applicable SPP website and Western-UGP's OASIS.

[FR Doc. 2020-15173 Filed 7-13-20; 8:45 am]
BILLING CODE 6450-01-P