[Federal Register Volume 85, Number 231 (Tuesday, December 1, 2020)]
[Notices]
[Pages 77196-77200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26015]


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DEPARTMENT OF ENERGY

Bonneville Power Administration

[BPA File No.: TC-22]


Proposed Modifications To Open Access Transmission Tariff; Public 
Hearing and Opportunities for Public Review and Comment

AGENCY: Bonneville Power Administration (Bonneville), Department of 
Energy (DOE).

ACTION:  Notice of public hearing and opportunity to review and 
comment.

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SUMMARY: Bonneville is holding a proceeding to modify the non-rate 
terms and conditions of a generally applicable open access transmission 
tariff (Tariff). Bonneville has designated this proceeding Docket No. 
TC-22. The Bonneville Project Act of 1937 as reaffirmed in the Pacific 
Northwest Electric Power Planning and Conservation Act grants the 
Bonneville Administrator broad authority to enter into contracts upon 
such terms and conditions and in such manner as the Administrator may 
deem necessary. The Federal Power Act and Bonneville's Tariff provide 
procedures the Administrator may use to establish and modify terms and 
conditions of general applicability for transmission service across the 
Federal Columbia River Transmission System (FCRTS). By this notice, 
Bonneville announces the commencement of a proceeding to modify terms 
and conditions of the Tariff to be effective on October 1, 2021.

DATES: 
    Prehearing Conference: The TC-22 tariff proceeding will begin with 
a prehearing conference on Monday, December 7, 2020, which will be held 
telephonically.
    Intervention: Anyone intending to become a party to the TC-22 
tariff proceeding must file a petition to intervene on Bonneville's 
secure website. Petitions to intervene may be filed beginning on the 
date of publication of this Notice and are due no later than 4:30 p.m. 
on Tuesday, December 8, 2020.

ADDRESSES: Interested parties may obtain call-in information by 
accessing Bonneville's TC-22 tariff proceeding web page at www.bpa.gov/goto/TC22 or by contacting the Hearing Clerk at [email protected]. 
The TC-22 prehearing conference will begin immediately following the 
conclusion of the prehearing conference for Bonneville's BP-22 Power 
and Transmission Rate Proceeding, which begins at 9:00 a.m.

[[Page 77197]]

    Participant Comments: Written comments by non-party participants 
must be received by March 1, 2021, to be considered in the Hearing 
Officer's recommended decision and the Administrator's Record of 
Decision (ROD).
    Part III of this notice, ``Public Participation in TC-22,'' 
provides details on requesting access to the secure website, filing a 
petition to intervene, and submitting participant comments.

FOR FURTHER INFORMATION CONTACT: Ms. Abigail Rhoads, DKE-7, BPA 
Communications, Bonneville Power Administration, P.O. Box 3621, 
Portland, Oregon 97208; by phone toll-free at 1-800-622-4519; or by 
email to [email protected].
    The Hearing Clerk for this proceeding can be reached via email at 
[email protected] or via telephone at (503) 960-8722.
    Please direct questions regarding Bonneville's secure website to 
the Rate Hearing Coordinator via email at [email protected] or, if the 
question is time-sensitive, via telephone at (503) 230-5107.
    Responsible Official: Rebecca Fredrickson, Manager of Transmission 
Tariff, Rates and Regulatory Activities, is the official responsible 
for the development of Bonneville's open access transmission tariff.

SUPPLEMENTARY INFORMATION: 

Table of Contents

Part I. Introduction and Procedural Matters
Part II. Scope of TC-22 Terms and Conditions Proceeding
Part III. Public Participation in TC-22
Part IV. Summary of Open Access Transmission Tariff Proposal
Part V. Proposed OATT

Part I--Introduction and Procedural Matters

A. Introduction and Procedural Background

    Section 9 of Bonneville's Tariff provides that the Bonneville 
Administrator may use the procedures set forth in Section 212(i)(2)(A) 
of the Federal Power Act to establish and modify non-rate terms and 
conditions of the Tariff. The Section 212(i)(2)(A) procedures include 
giving notice in the Federal Register and conducting a hearing that 
adheres to the procedural requirements of paragraphs (1) through (3) of 
Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i) (the same 
procedures Bonneville uses to set rates). In accordance with these 
procedures, the Hearing Officer conducts one or more hearings to 
develop a full and complete record, which includes the opportunity for 
both oral presentation and written submission of views, data, 
questions, and arguments related to the proposal. Unless the Hearing 
Officer becomes unavailable to Bonneville, upon conclusion of the 
hearing, the Hearing Officer shall make a recommended decision to the 
Administrator, and the Administrator then makes a separate and final 
determination to establish or modify the Tariff terms and conditions 
(discussed further in Part III, Section C of this notice).
    Bonneville's Rules of Procedure govern the TC-22 tariff 
proceedings. The rules are posted on Bonneville's website at https://www.bpa.gov/Finance/RateCases/RulesProcedure/Pages/default.aspx and 
published in the Federal Register, 83 FR 39993 (Aug. 13, 2018).

B. Proposed Procedural Schedule

    A proposed schedule for the proceeding is provided below. The 
official schedule will be established by the Hearing Officer and may be 
amended by the Hearing Officer as needed during the proceeding.

Prehearing--Conference December 7, 2020
BPA Files Initial Proposal--December 7, 2020
Deadline for Petitions to Intervene--December 8, 2020
Clarification--December 16-17, 2020
Motions to Strike Due--January 11, 2021
Data Request Deadline--January 11, 2021
Answers to Motions to Strike Due--January 18, 2021
Data Response Deadline--January 18, 2021
Parties File Direct Cases--January 29, 2021
Clarification--February 8-9, 2021
Motions to Strike Due--February 15, 2021
Data Request Deadline--February 15, 2021
Answers to Motions to Strike Due--February 22, 2021
Data Response Deadline--February 22, 2021
Close of Participant Comments--March 1, 2021
Litigants File Rebuttal Cases--March 8, 2021
Clarification--March 12, 2021
Motions to Strike Due--March 16, 2021
Data Request Deadline--March 16, 2021
Answers to Motions to Strike Due--March 23, 2021
Data Response Deadline--March 23, 2021
Parties Give Notice of Intent to Cross-Examine--March 24, 2021
Cross-Examination--March 29-30, 2021
Initial Briefs Filed--April 16, 2021
Oral Argument--April 26, 2021
Hearing Officer's Recommended Decision Issued--May 25, 2021
Draft ROD Issued--June 30, 2021
Briefs on Exceptions Filed--July 14, 2021
Final ROD and Final Studies Issued--July 28, 2021

C. Ex Parte Communications

    Section 1010.5 of the Rules of Procedure prohibits ex parte 
communications. Ex parte communications include any oral or written 
communication (1) relevant to the merits of any issue in the 
proceeding; (2) that is not on the record; and (3) with respect to 
which reasonable prior notice has not been given. The ex parte rule 
applies to communications with all Bonneville and DOE employees and 
contractors, the Hearing Officer, and the Hearing Clerk during the 
proceeding. Except as provided, any communications with persons covered 
by the rule regarding the merits of any issue in the proceeding by 
other Executive Branch agencies, Congress, existing or potential 
Bonneville customers, nonprofit or public interest groups, or any other 
non-DOE parties are prohibited. The rule explicitly excludes and does 
not prohibit communications (1) relating to matters of procedure; (2) 
otherwise authorized by law or the Rules of Procedure; (3) from or to 
the Federal Energy Regulatory Commission (Commission); (4) which all 
litigants agree may be made on an ex parte basis; (5) in the ordinary 
course of business, about information required to be exchanged under 
contracts, or in information responding to a Freedom of Information Act 
request; (6) between the Hearing Officer and Hearing Clerk; (7) in 
meetings for which prior notice has been given; or (8) otherwise 
specified in Section 1010.5(b) of the Rules of Procedure. The ex parte 
rule remains in effect until the Administrator's Final ROD is issued.

Part II--Scope of the TC-22 Tariff Proceeding

    The TC-22 tariff proceeding is a proceeding for the adoption of 
modifications to the non-rate terms and conditions in Bonneville's 
Tariff. A summary of Bonneville's proposed Tariff modifications is 
provided in Part IV of this notice. This section provides guidance to 
the Hearing Officer regarding the specific issues that are outside the 
scope of the TC-22 tariff proceeding. In addition to the issues 
specifically listed below, any other issue that is not a Tariff term 
and condition issue is outside the scope of this proceeding.
    Bonneville may revise the scope of the proceeding to include new 
issues that arise as a result of circumstances or events occurring 
outside the proceeding that are substantially related to the Tariff 
terms and conditions under consideration in the proceeding. See Rules 
of Procedure, Section 1010.4(b)(8)(iii), (iv). If Bonneville revises 
the scope of the proceeding to include new issues, Bonneville will 
provide public notice on its website,

[[Page 77198]]

present testimony or other information regarding such issues, and 
provide a reasonable opportunity to intervene and respond to 
Bonneville's testimony or other information. Id.

A. Business Practices

    Bonneville's business practices provide implementation details for 
the Tariff and are outside the scope of the TC-22 tariff proceeding. 
Bonneville's decisions regarding the business practices are determined 
in other forums and follow the procedures in Bonneville's Business 
Practice Process. If business practices are developed for the proposed 
terms and conditions in this proceeding, such development will occur 
outside the terms and conditions proceeding. Pursuant to Section 
1010.4(b)(8) of the Rules of Procedure, the Administrator directs the 
Hearing Officer to exclude from the record all argument, testimony, or 
other evidence that proposes or challenges Bonneville's current and 
future business practices.

B. Customer-Specific Contracts and Disputes

    Contracts and contract disputes between Bonneville and its 
customers are outside the scope of the TC-22 tariff proceeding. 
Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence related to contracts and 
contract disputes of Bonneville customers.

C. Oversupply Management Protocol

    The Oversupply Management Protocol (Tariff Attachment P) includes 
the Tariff requirements and procedures used to moderate total dissolved 
gas levels in the Columbia River to protect endangered fish and other 
aquatic species. Bonneville does not propose to modify the terms of the 
Oversupply Management Protocol in the TC-22 tariff proceeding. The 
Hearing Officer is directed to exclude from the record all argument, 
testimony, or other evidence related to the terms of the Oversupply 
Management Protocol (Tariff Attachment P), including whether the 
Oversupply Management Protocol complies with orders of the Commission; 
whether Bonneville took all actions to avoid using the Oversupply 
Management Protocol, including the payment of negative prices to 
generators outside of Bonneville's balancing authority area; and issues 
concerning the rates for recovering the costs of the Oversupply 
Management Protocol.

D. Program Cost Estimates

    Bonneville's projections of its program costs and spending levels 
are not determined in terms and conditions proceedings. These 
projections are determined by Bonneville in other forums, such as the 
Integrated Program Review public process, with input from stakeholders. 
Bonneville's decisions regarding cost projections are outside the scope 
of the TC-22 tariff proceeding. Pursuant to Section 1010.4(b)(8) of the 
Rules of Procedure, the Administrator directs the Hearing Officer to 
exclude from the record all argument, testimony, or other evidence that 
challenges the appropriateness or reasonableness of the Administrator's 
decisions on costs and spending levels. If any re-examination of 
program costs and spending levels is necessary, such re-examination 
will occur outside the TC-22 tariff proceeding.

E. Rates

    Pursuant to Bonneville's statutes it must set rates to recover 
costs associated with providing power and transmission services. In 
addition to and concurrent with this proceeding, Bonneville is holding 
a separate Power and Transmission Rate Adjustment hearing (the BP-22 
proceeding) regarding the proposed fiscal year 2022-2023 power and 
transmission, ancillary, and control area services rates. Bonneville's 
decisions regarding rates are outside the scope of the TC-22 tariff 
proceeding. Bonneville is publishing a separate notice in the Federal 
Register regarding the BP-22 proceeding. Pursuant to Section 
1010.4(b)(8) of the Rules of Procedure, the Administrator directs the 
Hearing Officer to exclude from the record all argument, testimony, or 
other evidence related to rates, or that challenges the appropriateness 
or reasonableness of the Administrator's decisions on rates or seeks in 
any way to propose revisions to the rates, including rate schedules, 
rate schedule provisions, rate designs, rate methodologies, rate 
forecasts, interest expense and credit, Treasury repayment schedules, 
non-Federal debt repayment schedules, revenue financing, calculation of 
depreciation and amortization expense, forecasts of system replacements 
used in repayment studies, transmission acquisition expenses incurred 
by Power Services, generation acquisition expenses and the in-kind 168 
hour delayed capacity incurred by Transmission Services, minimum 
required net revenue, increase in, or the use of, financial reserves, 
and the costs of risk mitigation actions resulting from the expense and 
revenue uncertainties included in the risk analysis.

F. Energy Imbalance Market Policy Decisions

    Since 2018, Bonneville has been exploring whether to join the 
Western Energy Imbalance Market (EIM). The EIM is an extension of the 
California Independent System Operator's (CAISO) real-time market. It 
economically dispatches resources that elect to participate in the EIM 
to solve for the energy imbalance of participating Balancing Authority 
Areas (BAAs), consistent with transmission and system constraints. 
Following an extensive public process, on September 26, 2019, 
Bonneville issued the Energy Imbalance Market Policy Administrator's 
Record of Decision, in which the Administrator made a number of policy 
decisions related to Bonneville's potential participation in the EIM. 
Later, on November 4, 2020, following another public process, 
Bonneville issued a follow-on decision document, the EIM Phase III 
Final Decision Document, addressing other policy issues related to 
Bonneville's potential EIM participation. Further, Bonneville will make 
its final decision on whether to join the EIM in a separate process 
that is expected to begin following completion of this case. The Energy 
Imbalance Market Policy Administrator's Record of Decision and the EIM 
Phase III Final Decision Document provided direction for the 
development of the EIM tariff proposals in the TC-22 proceeding, 
however, none of these decisions or the final decision on whether to 
join the EIM are within the scope of the TC-22 proceeding.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
raise or revisit the issues or decisions addressed in the Energy 
Imbalance Market Policy Administrator's Record of Decision or the Phase 
III EIM Decision Document. In addition, the Administrator directs the 
Hearing Officer to exclude from the record all argument, testimony, or 
other evidence that seeks to address whether Bonneville should join the 
EIM.

Part III--Public Participation in TC-22

A. Distinguishing Between ``Participants'' and ``Parties''

    Bonneville distinguishes between ``participants in'' and ``parties 
to'' the TC-22 proceeding. Separate from the formal hearing process, 
Bonneville will receive written comments, views,

[[Page 77199]]

opinions, and information from participants, who may submit comments 
without being subject to the duties of, or having the privileges of, 
parties. Participants are not entitled to participate in the prehearing 
conference; may not cross-examine parties' witnesses, seek discovery, 
or serve or be served with documents; and are not subject to the same 
procedural requirements as parties. Bonneville customers who will 
receive transmission or interconnection service under the terms and 
conditions subject to this proceeding, or their affiliated customer 
groups, may not submit participant comments. Members or employees of 
organizations that have intervened in the terms and conditions 
proceeding may submit participant comments as private individuals (that 
is, not speaking for their organizations), but may not use the comment 
procedures to address specific issues raised by their intervener 
organizations.
    Written comments by participants will be included in the record and 
considered by the Hearing Officer and the Administrator if they are 
received by March 21, 2021. The proposed Tariff and attachments are 
provided in Section IV of this notice. Participants should submit 
comments through Bonneville's website at www.bpa.gov/comment or in hard 
copy to: BPA Public Involvement, DKE-7, Bonneville Power 
Administration, P.O. Box 3621, Portland, Oregon 97208. All comments 
should contain the designation ``TC-22'' in the subject line.

B. Interventions

    Any entity or person intending to become a party in the TC-22 
proceeding must file a petition to intervene through Bonneville's 
secure website (https://www.bpa.gov/secure/Ratecase/). A first-time 
user of Bonneville's secure website must create a user account to 
submit an intervention. Returning users may request access to the TC-22 
proceeding through their existing accounts, and may submit 
interventions once their permissions have been updated. The secure 
website contains a link to the user guide, which provides step-by-step 
instructions for creating user accounts, generating filing numbers, 
submitting filings, and uploading interventions. Please contact the 
Hearing Coordinator via email at [email protected] or, if the question 
is time-sensitive, via telephone at (503) 230-5107 with any questions 
regarding the submission process. A petition to intervene must conform 
to the format and content requirements set forth in Bonneville's Rules 
of Procedure Sections 1010.6 and 1010.11 and must be uploaded to the 
TC-22 proceeding secure website by the deadline established in the 
procedural schedule.
    A petition to intervene must state the name and address of the 
entity or person requesting party status and the entity or person's 
interest in the hearing. Bonneville customers and affiliated customer 
groups will be granted intervention based on petitions filed in 
conformance with Rules of Procedure. Other petitioners must explain 
their interests in sufficient detail to permit the Hearing Officer to 
determine whether the petitioners have a relevant interest in the 
hearing. The deadline for opposing a timely intervention is two 
business days after the deadline for filing petitions to intervene. 
Bonneville or any party may oppose a petition for intervention. All 
petitions will be ruled on by the Hearing Officer. Late interventions 
are strongly disfavored. Opposition to an untimely petition to 
intervene must be filed within two business days after service of the 
petition.

C. Developing the Record

    The hearing record will include, among other things, the 
transcripts of the hearing, written evidence and arguments entered into 
the record by Bonneville and the parties, written comments from 
participants, and other material accepted into the record by the 
Hearing Officer. Upon conclusion of the hearing, the Hearing Officer 
will develop a recommended decision for the Administrator. The Hearing 
Officer's recommended decision must be based on the record and include 
the Hearing Officer's findings and conclusions, including the reasons 
or basis thereof, on all material issues of fact, law, or discretion 
raised by the parties in their initial briefs. The Hearing Officer will 
review and certify the record to the Administrator for final decision.
    The Administrator will make a final determination establishing or 
modifying Tariff terms and conditions based on the record, the Hearing 
Officer's recommended decision, and such other materials and 
information as may have been submitted to or developed by the 
Administrator. The Final ROD will be made available to all parties.

Part IV--Summary of Proposed Modifications to Bonneville's Tariff

    In this proceeding, Bonneville proposes to modify the Tariff terms 
and conditions described below, to be effective on October 1, 2021.
1. Transmission Studies Over the Southern Intertie (Sections 13.5, 
15.2, 15.4, 17.5, 19.1)
    The Tariff describes the processes Bonneville uses to offer 
agreements to study transmission requests when there is insufficient 
available transfer capability to offer service. Historically, 
Bonneville has not offered study agreements for service requests 
impacting the Southern Intertie. Bonneville is modifying study terms to 
describe when Bonneville will offer a study agreement for service 
impacting the Southern Intertie.
2. Form of Service Agreement (Attachments A and F)
    The Tariff includes the form of service agreement for point-to-
point and network integration transmission services. Bonneville is 
modifying these forms to reflect ministerial changes, update notice 
requirements, and add the service commencement date for purposes of 
participating in the EIM.
3. Transmission Planning Process (Attachment K)
    The Tariff describes the processes Bonneville uses to develop long-
range plans for the transmission system, including the process for 
Bonneville's participation in coordinated regional transmission 
planning. Bonneville is modifying the transmission planning processes 
to reflect Bonneville's participation in NorthernGrid, the regional 
planning organization.
4. Large and Small Generator Interconnections (Attachments L and N)
    The Tariff includes standard procedures and form of agreements to 
interconnect large and small generating facilities to the FCRTS. 
Bonneville is modifying the procedures and form agreements to reflect 
minor changes, align with the Commission's Order No. 845 and 845-A 
requirements, add procedures for repowering and replacing existing 
generation facilities, and add language related to Bonneville's 
potential EIM participation.
5. Basic Credit Standards (Section 11 and Attachment M)
    Bonneville requires transmission customers to complete credit 
review procedures in accordance with Bonneville's basic credit 
standards. Bonneville's basic credit standards are available on 
Bonneville's website. Bonneville is modifying the Tariff to incorporate 
the basic credit standards. Bonneville is not proposing substantive 
changes to the basic credit standards.

[[Page 77200]]

6. Real Power Loss Return (Schedule 11)
    Bonneville requires transmission customers to replace real power 
losses associated with transmission service. Real power losses are 
determined using real power loss factors established by Bonneville in 
Schedule 11. Bonneville is modifying the real power loss return factor 
for transmission service over the Network segment. The rates applicable 
to real power losses may be established in the BP-22 proceeding and are 
outside the scope of the TC-22 tariff proceeding.
7. EIM Tariff Terms and Condition Proposals (Sections 1, 7.1, 10.2, 
12.4, 13.6, 14.7, 15.7, 16.1, 28.1, 28.5, 28.7, 29.2, 30.1, 30.4, 
Schedules 4 and 9, and Attachment Q)
    Since 2018, Bonneville has been exploring whether to join the 
Western EIM, which is an extension of the CAISO real-time market. The 
EIM is operated by the CAISO, which uses market software to 
economically dispatch participating generation resources to balance 
supply, transfers between balancing authority areas (interchange), and 
load across the market's footprint, while also simultaneously ensuring 
generation and transmission limitations are respected. For balancing 
authorities in the EIM (EIM Entities), the EIM replaces Energy 
Imbalance and Generator Imbalance under the EIM Entities' respective 
open access transmission tariffs. In September of 2019, following an 
extensive public process, Bonneville issued the Energy Imbalance Market 
Policy Administrator's Record of Decision, in which the Administrator 
made a number of policy decisions related to Bonneville's potential 
participation in the EIM and signed an EIM Implementation Agreement--a 
first step to joining the EIM. In that ROD, Bonneville explained its 
intent to continue through the EIM evaluation process, with the 
expectation that a final decision on EIM participation would be made in 
2021. If Bonneville decides to join the EIM, actual participation is 
projected to begin in 2022. To position BPA to join the EIM in 2022, 
Bonneville must establish the Tariff terms and conditions and rates for 
participating in the EIM. Thus, a major portion of the TC-22 tariff 
proceeding will be dedicated to developing the Tariff terms and 
conditions language necessary to facilitate Bonneville's participation 
in the EIM in 2022. The rates for participating in the EIM are being 
established in the BP-22 proceeding (rates are outside the scope of the 
TC-22 tariff proceeding).

Part V--Proposed Tariff

    Bonneville's proposed Tariff is part of this notice and is 
available to view and download on Bonneville's website at www.bpa.gov/goto/TC22.

Signing Authority

    This document of the Department of Energy was signed on November 
19, 2020, by John L. Hairston, Acting Administrator and Chief Executive 
Officer of the Bonneville Power Administration, 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 November 19, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2020-26015 Filed 11-30-20; 8:45 am]
BILLING CODE 6450-01-P