[Federal Register Volume 87, Number 148 (Wednesday, August 3, 2022)]
[Notices]
[Pages 47419-47422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16629]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Washoe Project, Stampede Division--Rate Order No. WAPA-201

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order concerning non-firm power formula rate.

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SUMMARY: The non-firm power formula rate for the Washoe Project, 
Stampede Division (Provisional Formula Rate) has been confirmed, 
approved, and placed into effect on an interim basis. The Provisional 
Formula Rate is unchanged from the existing Washoe Project formula rate 
in Rate Schedule SNF-7, which expires on September 30, 2022.

DATES: The Provisional Formula Rate under Rate Schedule WSH-1 is 
effective on the first day of the first full billing period beginning 
on or after October 1, 2022, and will remain in effect through 
September 30, 2027, pending confirmation and approval by the Federal 
Energy Regulatory Commission (FERC) on a final basis or until 
superseded.

FOR FURTHER INFORMATION CONTACT: Sonja Anderson, Regional Manager, 
Sierra Nevada Region, Western Area Power Administration, 114 Parkshore 
Drive, Folsom, California 95630, or Autumn Wolfe, Rates Manager, Sierra 
Nevada Region, Western Area Power Administration, (916) 353-4686 or 
email: [email protected].

SUPPLEMENTARY INFORMATION: On April 16, 2009, FERC approved and 
confirmed the Sierra Nevada Region Washoe Project, Stampede Division's 
non-firm power formula rate, Rate Schedule SNF-7, under Rate Order No. 
WAPA-136, on a final basis through July 31, 2013.\1\ FERC subsequently 
approved two consecutive 5-year rate extensions, extending the rate 
through September 30, 2022.\2\ This rate schedule applies to the Washoe 
Project, Stampede Division. Western Area Power Administration (WAPA) 
published a Federal Register notice (Proposed FRN) on April 5, 2022 (87 
FR 19678), proposing no changes from the existing Washoe Project, 
Stampede Division non-firm power formula rate in Rate Schedule SNF-7, 
which expires on September 30, 2022. The Proposed FRN also initiated a 
public consultation and comment period and set forth the date and 
location of the public information and public comment forums.
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    \1\ Order Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. ER08-5161-000, 127 FERC ] 62,043 (2009).
    \2\ Orders Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. EF13-5-000, 144 FERC ] 62,213 (2013) and FERC 
Docket No. EF17-1-000, 159 FERC ] 62,047 (2017).
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Legal Authority

    By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 
2016, the Secretary of Energy delegated: (1) the authority to develop 
power and transmission rates to the WAPA Administrator; (2) the 
authority to confirm, approve, and place such rates into effect on an 
interim basis to the Deputy Secretary of Energy; and (3) the authority 
to confirm, approve on a final basis, remand, or disapprove such rates, 
to FERC. By Delegation Order No. S1-DEL-S3-2022-2, effective June 13, 
2022, 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 for Infrastructure. By Redelegation Order No. S3-DEL-
WAPA1-2022, effective June 13, 2022, the Under Secretary for 
Infrastructure redelegated the authority to confirm, approve, and place 
such rates into effect on an interim basis to WAPA's Administrator. 
This rate action is issued under Redelegation Order No. S3-DEL-WAPA1-
2022 and Department of Energy procedures for public

[[Page 47420]]

participation in rate adjustments outlined in 10 CFR part 903.\3\
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    \3\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    Following a review of the Sierra Nevada Region's proposal, I hereby 
confirm, approve, and place Rate Order No. WAPA-201, which provides the 
non-firm power formula rate for the Washoe Project, Stampede Division 
into effect on an interim basis. WAPA will submit Rate Order No. WAPA-
201 to FERC for confirmation and approval on a final basis.

DEPARTMENT OF ENERGY ADMINISTRATOR, WESTERN AREA POWER ADMINISTRATION

    In the Matter of: Western Area Power Administration, Sierra Nevada 
Region, Rate Adjustment for the Washoe Project, Stampede Division, Non-
Firm Power Formula Rate.

Rate Order No. WAPA-201

ORDER CONFIRMING, APPROVING, AND PLACING THE NON-FIRM POWER FORMULA 
RATE FOR THE WASHOE PROJECT, STAMPEDE DIVISION INTO EFFECT ON AN 
INTERIM BASIS

    The non-firm power formula rate in Rate Order No. WAPA-201 is 
established following section 302 of the Department of Energy (DOE) 
Organization Act (42 U.S.C. 7152).\4\
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    \4\ This Act transferred to, and vested in, the Secretary of 
Energy the power marketing functions of the Secretary of the 
Department of the Interior and the Bureau of Reclamation 
(Reclamation) under the Reclamation Act of 1902 (ch.1093, 32 Stat. 
388), as amended and supplemented by subsequent laws, particularly 
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 
485h(c)); and other acts that specifically apply to the project 
involved.
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    By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 
2016, the Secretary of Energy delegated: (1) the authority to develop 
power and transmission rates to the WAPA Administrator; (2) the 
authority to confirm, approve, and place such rates into effect on an 
interim basis to the Deputy Secretary of Energy; and (3) the authority 
to confirm, approve, and place into effect on a final basis, or to 
remand or disapprove such rates, to FERC. By Delegation Order No. S1-
DEL-S3-2022-2, effective June 13, 2022, 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 for Infrastructure. 
By Redelegation Order No. S3-DEL-WAPA1-2022, effective June 13, 2022, 
the Under Secretary for Infrastructure further redelegated the 
authority to confirm, approve, and place such rates into effect on an 
interim basis to WAPA's Administrator. This rate action is issued under 
Redelegation Order No. S3-DEL-WAPA1-2022 and DOE procedures for public 
participation in rate adjustments set forth at 10 CFR part 903.\5\
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    \5\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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Acronyms, Terms, and Definitions

    As used in this Rate Order, the following acronyms, terms, and 
definitions apply:

Customer Rate Brochure: A document prepared for public distribution 
explaining the rationale and background for the information contained 
in this rate order.
DOE Order RA 6120.2: Department of Energy Order outlining the power 
marketing administration financial reporting and rate-making 
procedures.
Energy: Measured in terms of the work it is capable of doing over a 
period of time. Electric energy is usually measured in kilowatt-hours 
or megawatt-hours.
NEPA: National Environmental Policy Act of 1969, as amended.
Non-Firm: Delivery or receipt of the power may be interrupted for any 
reason without liability on the part of either buyer or seller.
Power: Capacity and energy.
Preference: The provisions of Reclamation Law that require WAPA to 
first make Federal Power available to certain entities. For example, 
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) 
states that preference in the sale of Federal Power shall be given to 
municipalities and other public corporations or agencies and also to 
cooperatives and other nonprofit organizations financed in whole or in 
part by loans made under the Rural Electrification Act of 1936.
Provisional Formula Rate: A formula rate confirmed, approved, and 
placed into effect on an interim basis by the Secretary or his/her 
designee.
PRS: Power Repayment Study, as defined in DOE Order RA 6120.2 and used 
for the rate adjustment period, is a tool used to determine if the 
projected power revenue for each project is adequate to meet the annual 
revenue requirement. The PRS is used to calculate how much revenue is 
needed to meetannual investment obligations, O&M expenses, and 
repayment requirements (including repayment periods).
Webex: Webex is an online secure invite-only meeting platform used by 
WAPA. The general website is https://doe.webex.com.

Effective Date

    The Provisional Formula Rate Schedule WSH-1 will take effect on the 
first day of the first full billing period beginning on or after 
October 1, 2022, and will remain in effect through September 30, 2027, 
pending approval by FERC on a final basis or until superseded.

Public Notice and Comment

    Sierra Nevada Region followed the Procedures for Public 
Participation in Power and Transmission Rate Adjustments and 
Extensions, 10 CFR part 903, in developing this non-firm power formula 
rate. Following are the steps Sierra Nevada Region took to involve 
interested parties in the rate process:
    1. On April 5, 2022, a Federal Register notice (87 FR 19678) 
(Proposed FRN) announced the proposed non-firm power formula rate and 
launched a 60-day public consultation and comment period.
    2. On April 5, 2022, the Sierra Nevada Region notified Preference 
Customers and interested parties of the proposed rate and provided a 
copy of the published Proposed FRN.
    3. On April 22, 2022, the Sierra Nevada Region held a public 
information forum via Webex. Sierra Nevada Region's representatives 
explained the proposed non-firm power formula rate, answered questions, 
and gave notice that more information was available in the Customer 
Rate Brochure.
    4. On April 22, 2022, the Sierra Nevada Region held a public 
comment forum to provide an opportunity for customers and other 
interested parties to comment for the record.
    5. Sierra Nevada Region published a website that contains all 
dates, customer letters, presentations, comments, FRNs, Customer Rate 
Brochure, and other information about this rate process. The website is 
located at www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx.
    6. During the 60-day consultation and comment period, which ended 
on June 6, 2022, the Sierra Nevada Region received no oral comments and 
no written comments.

Supplementary Information

    Stampede Dam and Reservoir are located on the Little Truckee River 
in Sierra County, California, about 11 miles northeast of the town of 
Truckee. The Washoe Project was designed to improve the regulation of 
runoff from the Truckee and Carson River system and to provide 
supplemental irrigation

[[Page 47421]]

water and drainage, as well as water for municipal, industrial, fishery 
use, flood protection, fish and wildlife benefits, and recreation. The 
Stampede Powerplant provides the economic equivalent of project-use 
power to Lahontan and Marble Bluff fish facilities.
    When the Stampede Dam and Reservoir project was first authorized, 
under Public Law 84-858, on August 1, 1956, hydroelectric power 
development was included. During the period 1966 to 1970, when Stampede 
Dam was built, power facilities were not constructed because the power 
function was not economically justified. Provisions were made to 
facilitate the addition of power facilities at a later date.
    In July 1976, a preliminary reevaluation of a powerplant at 
Stampede was conducted and published in a special U.S. Department of 
Interior, Bureau of Reclamation (Reclamation) report, Adding 
Powerplants at Existing Federal Dams in California. In the report, 
Reclamation recommended the construction of a Stampede Powerplant. As a 
result, definitive plan studies were initiated in Fiscal Year 1977, and 
construction of the powerplant was completed in 1987. A one-half-mile, 
60-kilovolt transmission line, owned by Sierra Pacific Power Company 
(Sierra Pacific), interconnects the Stampede power facilities with 
Sierra Pacific's transmission system.
    Under section 205(c) of the Fallon Paiute Shoshone Indian Tribes 
Water Rights Settlement Act of 1990, Congress declared all Washoe 
Project costs non-reimbursable except the Stampede Powerplant.\6\ This 
was necessary because a 1982 court order requires that Stampede be 
operated for the benefit of endangered or threatened fish at Pyramid 
Lake.\7\ The energy generated by the powerplant has a priority 
reservation for designated Washoe Project loads. All remaining energy 
generation is sold on a non-firm basis under the conditions outlined in 
the Sierra Nevada Region's contract with a third-party contractor. 
Energy generated at Stampede Powerplant is dependent on the run of the 
river and is therefore considered non-firm.
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    \6\ See Public Law 101-618, 104 Stat. 3289, 3307 (1990).
    \7\ See Carson-Truckee Water Conservancy Dist. v. Watt, 549 F. 
Supp. 704, 710 (D. Nev. 1982), aff'd in part and vacated in part sub 
nom. Carson-Truckee Water Conservancy Dist. v. Clark, 741 F.2d 257, 
260 (9th Cir. 1984).
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    Since the Washoe Project has no Federally owned transmission lines, 
Sierra Nevada Region contracted with Truckee Donner Public Utility 
District and the City of Fallon (TDF) to accept Stampede generation and 
serve project use loads. Energy in excess of project use loads is 
marketed with the Central Valley Project (CVP) under the 2004 and 2025 
Power Marketing Plans. Under the provisional Rate Schedule WSH-1, each 
year any remaining reimbursable expenses that exceed the revenue 
collected under the TDF contract are transferred to the CVP and 
incorporated into the CVP power revenue requirement (PRR). CVP 
customers that participate in the Renewable Energy Credit (REC) program 
receive a share of the annual Stampede RECs based on the annual 
percentage of CVP revenue transferred to the Washoe Project.

Stampede Non-Firm Power Formula Rate

    There are no changes from the existing formula rate to the 
Provisional Formula Rate. The Provisional Formula Rate for Stampede's 
non-firm power is designed to recover an annual revenue requirement 
that includes investment repayment, interest, purchase power, 
reimbursable operation and maintenance expenses, and other expenses. 
The Provisional Formula Rate for Stampede power is:

Stampede Annual Transferred PRR = Stampede Annual PRR-Stampede Revenue

Where:

Stampede Annual Transferred PRR = Stampede Annual PRR identified as 
a cost transferred to the CVP.
Stampede Annual PRR = the total PRR for Stampede required to repay 
all annual costs, including interest, and the investment within the 
allowable period.
Stampede Revenue = Revenue from applying the Stampede Energy 
Exchange Account (SEEA) rate to project generation.

    The SEEA is an annual energy exchange account for Stampede energy. 
Under the contract, TDF accepts delivery of all energy generated from 
Stampede and integrates this generation into its resource portfolio. 
The monthly calculation of revenue from Stampede energy received by TDF 
is credited into the SEEA. WAPA can use the SEEA revenue to benefit 
project use facilities and market energy from Stampede to CVP 
preference entities.
    In the SEEA, the revenues from sales (generation revenues) are 
reduced by the project use costs, station service power costs, and SEEA 
administrative costs. WAPA applies the ratio of project use cost to the 
generation revenue recorded in the SEEA to determine a non-reimbursable 
percentage. One hundred percent minus the non-reimbursable percentage 
establishes a reimbursable percentage. This reimbursable percentage is 
then applied to the appropriate power-related costs to determine the 
reimbursable costs for repayment. The reimbursable costs are then 
netted against generation revenues made at the SEEA rate.

Comments

    Sierra Nevada Region received no oral or written comments during 
the public consultation and comment period.

Certification of Rates

    I have certified that the Provisional Formula Rate for the Washoe 
Project, Stampede Division under Rate Schedule WSH-1 is the lowest 
possible rate, consistent with sound business principles. The 
Provisional Formula Rate was developed following administrative 
policies and applicable laws.

Availability of Information

    Information about this rate adjustment, including the Customer Rate 
Brochure, PRS, comments, letters, memorandums, and other supporting 
materials that were used to develop the Provisional Formula Rate, is 
available for inspection and copying at the Sierra Nevada Regional 
Office, 114 Parkshore Drive, Folsom, California. Many of these 
documents are also available on WAPA's website at www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    WAPA has determined that this action fits within the following 
categorical exclusions listed in appendix B to subpart D of 10 CFR part 
1021.410: B4.3 (Electric power marketing rate changes) and B4.4 (Power 
marketing services and activities). Categorically excluded projects and 
activities do not require the preparation of either an environmental 
impact statement or an environmental assessment.\8\ Specifically, WAPA 
has determined that this rulemaking is consistent with activities 
identified in B4, Categorical Exclusions Applicable to Specific Agency 
Actions (see 10 CFR part 1021, appendix B to subpart D, part B4). A 
copy of the categorical exclusion determination is available on WAPA's 
website at www.wapa.gov/regions/SN/rates/Pages/Rate-Case-2022-WAPA-201.aspx.
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    \8\ The determination was done in compliance with NEPA (42 
U.S.C. 4321-4347); the Council on Environmental Quality Regulations 
for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA 
Implementing Procedures and Guidelines (10 CFR part 1021).

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[[Page 47422]]

Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

Submission to the Federal Energy Regulatory Commission

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

Order

    In view of the above, and under the authority delegated to me, I 
hereby confirm, approve, and place into effect, on an interim basis, 
Rate Order No. WAPA-201. The rate will remain in effect on an interim 
basis until: (1) FERC confirms and approves it on a final basis; (2) a 
subsequent rate is confirmed and approved; or (3) such rate is 
superseded.

Signing Authority

    This document of the Department of Energy was signed on July 25, 
2022, by Tracey A. LeBeau, Administrator, Western Area 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 July 29, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION

SIERRA NEVADA REGION Washoe Project, Stampede Division

NON-FIRM POWER FORMULA RATE (Approved Under Rate Order No. WAPA-201)

Effective

    The first day of the first full billing period beginning on or 
after October 1, 2022, through September 30, 2027, or until superseded 
by another rate schedule, whichever occurs earlier.

Available

    Within the marketing area served by the Sierra Nevada Region.

Applicable

    To preference customers under the 2004 Power Marketing Plan, the 
2025 Power Marketing Plan, and the applicable third party(ies) who are 
under contract (Contractor) with the Western Area Power Administration 
(WAPA).

Character and Conditions of Service

    Alternating current, 60 hertz, three-phase, delivered and metered 
at the voltages and points established by contract.

Non-Firm Power Formula Rate

    To serve project use loads and effectively market the energy from 
Stampede, WAPA has contracted with a third-party Contractor that 
provides for a Stampede Energy Exchange Account (SEEA). The SEEA is an 
annual energy exchange account for Stampede energy. In the SEEA, the 
revenues from sales (generation revenues) made at the SEEA Rate are 
reduced by the project use and station service power costs, and SEEA 
administrative costs. WAPA applies the ratio of project use costs to 
the generation revenue recorded in the SEEA to determine a non-
reimbursable percentage. One hundred percent minus this non-
reimbursable percentage establishes a reimbursable percentage. This 
reimbursable percentage is then applied to the appropriate power-
related costs to determine the reimbursable costs for repayment. The 
reimbursable costs are then netted against generation revenues made at 
the SEEA Rate. As stipulated under the 2004 Power Marketing Plan and 
2025 Power Marketing Plan, any remaining reimbursable costs, including 
interest and annual capital costs, are then transferred to the Central 
Valley Project for incorporation into the CVP Power Revenue 
Requirement.
    The formula rate for Stampede power is:

Stampede Annual Transferred PRR = Stampede Annual PRR--Stampede Revenue

Where:

Stampede Annual Transferred Power Revenue Requirement (PRR) = 
Stampede Annual PRR identified as a cost transferred to the CVP.
Stampede Annual PRR = The total PRR for Stampede required to repay 
all annual costs, including interest, and the investment within the 
allowable period.
Stampede Revenue = Revenue from applying the SEEA Rate to project 
generation.

Billing

    Billing for the SEEA Rate will be as specified in the service 
agreement.

Adjustment for Losses

    Losses will be accounted for under this rate schedule as stated in 
the service agreement.
[FR Doc. 2022-16629 Filed 8-2-22; 8:45 am]
BILLING CODE 6450-01-P