[Federal Register Volume 87, Number 217 (Thursday, November 10, 2022)]
[Notices]
[Pages 67894-67895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24571]



[[Page 67894]]

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DEPARTMENT OF ENERGY

Western Area Power Administration


Olmsted Powerplant Replacement Project--Rate Order No. WAPA-205

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed formula rate for electric power service.

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SUMMARY: The Colorado River Storage Project Management Center (CRSP MC) 
of the Western Area Power Administration (WAPA) proposes a new formula 
rate for the Olmsted Powerplant Replacement Project (Olmsted Project). 
The existing rate for this service under Rate Order WAPA-177 expires on 
May 6, 2023. There are no proposed changes to the existing formula rate 
in effect under Rate Order WAPA-177. WAPA proposes the new formula rate 
under Rate Order WAPA-205 will be effective May 1, 2023, through April 
30, 2028.

DATES: A consultation and comment period will begin November 10, 2022 
and end December 12, 2022.
    CRSP MC will accept comments any time during the consultation and 
comment period.

ADDRESSES: Written comments and requests to be informed of Federal 
Energy Regulatory Commission (FERC) actions concerning the proposed 
formula rate submitted by WAPA to FERC for approval should be sent to: 
Rodney Bailey, Manager, CRSP MC, Western Area Power Administration, 
1800 South Rio Grande Avenue, Montrose, CO 81401, or email: 
[email protected]. CRSP MC will post information about the proposed 
formula rate and written comments received to its website at: 
www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx.

FOR FURTHER INFORMATION CONTACT: Thomas Hackett, Rates Manager, CRSP 
MC, Western Area Power Administration, 801-524-5503 or email: 
[email protected].

SUPPLEMENTARY INFORMATION: On August 30, 2018, FERC approved and 
confirmed Rate Schedule F-1 under Rate Order No. WAPA-177 on a final 
basis through May 6, 2023.\1\ This schedule applies to the Olmsted 
Project electric power service.
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    \1\ Order Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. EF18-4-000, 164 FERC ] 62,116 (2018).
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    The existing formula rate provides sufficient revenue to recover 
annual costs within the cost recovery criteria set forth in Department 
of Energy (DOE) Order RA 6120.2. The proposed rate continues the 
formula-based methodology that includes an annual update to the 
financial data in the rate formula. CRSP MC intends the proposed 
formula-based rate go into effect May 1, 2023. Each WAPA customer who 
receives an allocation of power from the Olmsted Project will pay its 
proportional share of the amortized portion of the United States' 
investment in the hydroelectric facilities with interest and the 
associated operation, maintenance, and replacement (OM&R) costs in an 
annual installment. The proportional share is based on each customer's 
share of the Olmsted Project's marketable energy production.
    This proposed formula-based rate does not depend on the power and 
energy available to sell or the rate of generation each year. Each 
customer pays a proportional share of all investment and OM&R expenses 
of the Olmsted Project in return for its share of the marketable energy 
produced by the Olmsted Project. Each fiscal year (FY), CRSP MC will 
estimate the Olmsted Project expenses by preparing a power repayment 
study, which will include estimates of OM&R costs for the Olmsted 
Project. Cost allocations will be updated for the FY 2025 installment 
after the 2025 Olmsted Power Marketing Plan is finalized and new power 
contracts are effective October 1, 2024. The proposed formula rate 
would remain in effect until April 30, 2028, or until WAPA changes the 
formula rate through another public rate process pursuant to 10 CFR 
part 903, whichever occurs first.

Legal Authority

    Existing DOE procedures for public participation in power and 
transmission rate adjustments (10 CFR part 903) were published on 
September 18, 1985, and February 21, 2019.\2\ The proposed action 
constitutes a minor rate adjustment, as defined by 10 CFR 903.2(e). In 
accordance with 10 CFR 903.15(a) and 10 CFR 903.16(a), CRSP MC has 
determined it is not necessary to hold public information and public 
comment forums for this rate action but is initiating a 30-day 
consultation and comment period to give the public an opportunity to 
comment on the proposed formula rate. CRSP MC will review and consider 
all timely public comments at the conclusion of the consultation and 
comment period and make amendments or adjustments to the proposal as 
appropriate. Proposed rates will then be approved on an interim basis.
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    \2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    WAPA is establishing the formula rate for the Olmsted Project in 
accordance with section 302 of the 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 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.

Availability of Information

    All brochures, studies, comments, letters, memoranda, or other 
documents that CRSP MC initiates or uses to develop the proposed 
formula rate are available for inspection and copying at the CRSP MC, 
located at 1800 South Rio Grande Avenue, Montrose, CO. Many of these 
documents and supporting information are also available on WAPA's 
website at: www.wapa.gov/regions/CRSP/rates/Pages/rate-order-205.aspx.

Ratemaking Procedure Requirements

Environmental Compliance

    WAPA has determined 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 activities). Categorically excluded projects and 
activities do not require preparation of either an environmental impact 
statement or an environmental assessment.\4\ Specifically, WAPA has

[[Page 67895]]

determined that this activity 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/CRSP/rates/Pages/rate-order-205.aspx.
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    \4\ The determination was done 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).
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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.

Signing Authority

    This document of the Department of Energy was signed on October 28, 
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 November 7, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-24571 Filed 11-9-22; 8:45 am]
BILLING CODE 6450-01-P