[Federal Register Volume 87, Number 223 (Monday, November 21, 2022)]
[Notices]
[Pages 70799-70808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25266]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects--Rate Order No. WAPA-202

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order concerning firm electric service and sale 
of surplus products formula rates.

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SUMMARY: The formula rates for the Rocky Mountain Region's (RMR) 
Loveland Area Projects (LAP) firm electric service and sale of surplus 
products have been confirmed, approved, and placed into effect on an 
interim basis (Provisional Formula Rates). LAP consists of the 
Fryingpan-Arkansas Project (Fry-Ark) and the Pick-Sloan Missouri Basin 
Program (P-SMBP)--Western Division, which were integrated for marketing 
and rate-making purposes in 1989. These new formula rates replace the 
existing formula rates for these services under Rate Schedules L-F11, 
Firm Electric Service, and L-M2, Sale of Surplus Products, which expire 
on December 31, 2022. The LAP firm electric service rate is increasing 
16.5 percent. There are no changes to the formula rate for sale of 
surplus products.

DATES: The Provisional Formula Rates under Rate Schedules L-F12, Firm 
Electric Service, and L-M3, Sale of Surplus Products, are effective on 
the first day of the first full billing period beginning on or after 
January 1, 2023, and will remain in effect through December 31, 2027, 
pending confirmation and approval by the Federal Energy Regulatory 
Commission (FERC) on a final basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Barton V. Barnhart, Regional Manager, 
Rocky Mountain Region, Western Area Power Administration, 5555 East 
Crossroads Boulevard, Loveland, CO 80538-8986, or email: 
[email protected], or Sheila D. Cook, Rates Manager, Rocky Mountain 
Region, Western Area Power Administration, (970) 685-9562, or email: 
[email protected].

SUPPLEMENTARY INFORMATION: On May 24, 2018, FERC confirmed and approved 
Formula Rate Schedules L-F11 and L-M2 under Rate Order No. WAPA-179, on 
a final basis through December 31, 2022.\1\ These schedules apply to 
LAP firm electric service and sale of surplus products. Western Area 
Power Administration (WAPA) published a Federal Register notice 
(Proposed FRN) on May 25, 2022 (87 FR 31876), proposing increases to 
both the base component and the drought adder component of the LAP firm 
electric service rate and to put new 5-year rate schedules in place. 
The Proposed FRN also initiated a 90-day public consultation and 
comment period and set forth the dates and locations of the public 
information and public comment forums.
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    \1\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF18-3-000, 163 FERC ] 62,115 (2018).
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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, 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 Department of Energy 
procedures for public participation in rate adjustments set forth at 10 
CFR part 903.\2\
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    \2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    Following review of RMR's proposal, Rate Order No. WAPA-202, which 
provides the formula rates for LAP firm electric service and sale of 
surplus products, is hereby confirmed, approved, and placed into effect 
on an interim basis. WAPA will submit Rate Order No. WAPA-202 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, Rocky Mountain 
Region, Rate Adjustment for the Loveland Area Projects, Firm Electric 
Service and Sale of Surplus Products, Formula Rates.

Rate Order No. WAPA-202

Order Confirming, Approving, and Placing the Formula Rates for the 
Loveland Area Projects Into Effect on an Interim Basis

    The formula rates in Rate Order No. WAPA-202 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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[[Page 70800]]

    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 Western Area Power Administration 
(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 the 
Federal Energy Regulatory Commission (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.\4\
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    \4\ 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:
    Base: A component of the firm electric service (FES) rate design 
that is a fixed revenue requirement that includes operation and 
maintenance expenses (O&M), investments and replacements, interest on 
investments and replacements, normal timing power purchases, and 
transmission costs.
    Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment. It is expressed in kilowatts 
(kW) or megawatts (MW).
    Capacity Rate: The rate which sets forth the charges for capacity. 
It is expressed in dollars per kilowatt-month (kWmonth) and applied to 
each kW of the Contract Rate of Delivery or CROD.
    Composite Rate: The Power Repayment Study (PRS) rate for commercial 
firm power, which is the total annual revenue requirement for capacity 
and energy divided by the total annual energy sales. It is expressed in 
mills per kilowatt-hour (mills/kWh) and used only for comparison 
purposes.
    Corp of Engineers Annual Operating Plan (AOP): The Corp of 
Engineers (Corps) water management guidelines designed to meet the 
reservoir regulation objectives.
    Customer: An entity with a contract that is receiving Loveland Area 
Projects (LAP) firm electric service from WAPA.
    Customer Rate Brochure: A document prepared for public distribution 
explaining the rationale and background for the information contained 
in the Proposed FRN and in this rate order.
    Deficit(s): Deferred or unrecovered annual and/or interest 
expenses.
    Drought Adder: A component of the FES rate design that is a 
formula-based revenue requirement that includes future power purchases 
above normal timing power purchases, previous purchase power drought-
related Deficits, and interest on the purchase power drought-related 
Deficits.
    Energy: Measured in terms of the work it is capable of doing over a 
period of time. Electric energy is expressed in kilowatt-hours (kWh).
    Energy Charge: The charge under the rate schedule for energy. It is 
expressed in mills/kWh and applied to each kWh delivered to each 
Customer.
    FRN: Federal Register Notice--a document published in the Federal 
Register in order for WAPA to provide information of public interest.
    Firm: Power intended to be available at all times during the period 
covered by a guaranteed commitment to deliver, even under adverse 
conditions.
    FY: WAPA's fiscal year; October 1 to September 30.
    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.
    kWmonth: Kilowatt-month--the electrical unit of the monthly amount 
of capacity.
    LAP Marketing Plan: The Post-1989 General Power Marketing and 
Allocation Criteria for the Pick-Sloan Missouri Basin Program--Western 
Division (P-SMBP--WD) and the Fryingpan-Arkansas Project (Fry-Ark) 
(collectively known as Loveland Area Projects or LAP) (published in 
January 1986 and extended and amended per the LAP 2025 Power Marketing 
Initiative published on December 10, 2013 (78 FR 79444)) that provides 
the principles used to market LAP firm hydropower resources.
    mills/kWh: Mills per kilowatt-hour--the unit of charge for energy 
(equal to one tenth of a cent or one thousandth of a dollar).
    NEPA: National Environmental Policy Act of 1969, as amended.
    Non-timing Power Purchases: Power purchases related to drought 
conditions, not related to operational constraints.
    Normal Timing Power Purchases: Power purchases related to 
operational constraints (e.g., management of endangered species 
habitat, water quality, navigation, balancing authority purposes, 
market events, etc.), not associated with drought conditions.
    O&M: Operation and maintenance expenses.
    OM&R: Operation, maintenance, and replacement expenses.
    Order RA 6120.2: DOE Order outlining Power Marketing Administration 
financial reporting and rate-making procedures.
    Power: Capacity and energy.
    Power Factor: The ratio of real to apparent power at any given 
point and time in an electrical circuit. Generally, it is expressed as 
a percentage.
    Power Repayment Study (PRS): Defined in Order RA 6120.2 as a study 
portraying the annual repayment of power production and transmission 
costs of a power system through the application of revenues over the 
repayment period of the power system. The study shows, among other 
items, estimated revenues and expenses, year by year, over the 
remainder of the power system's repayment period (based upon conditions 
prevailing over the cost evaluation period), the estimated amount of 
Federal investment amortized during each year, and the total estimated 
amount of Federal investment remaining to be amortized.
    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 Rates: Formula rates confirmed, approved, and 
placed into effect on an interim basis by the Secretary of Energy or 
his/her designee.
    Rate-setting PRS: The PRS used for the rate adjustment proposal.
    Reclamation's Most Probable Inflow Operating Plan: The combination 
of the forecasted generation plans for the Bureau of Reclamation's 
(Reclamation) North Platte River, Buffalo Bill Reservoir, Boysen 
Reservoir, Colorado

[[Page 70801]]

Big-Thompson Project, and Yellowtail Dam, assuming median generation.
    Regional Transmission Organization (RTO): Organizations that 
operate bulk electric power systems across parts of North America. RTOs 
are independent, membership-based, non-profit organizations that ensure 
reliability and optimize supply and demand bids for wholesale electric 
power.
    RTO West: A group of electricity service providers focusing on 
collaboratively developing long-term solutions that will improve market 
efficiencies in the West.
    Regions: WAPA's Rocky Mountain Region (RMR) and Upper Great Plains 
Region (UGP).
    Revenue Requirement: The revenue required by the PRS to recover 
annual expenses (such as O&M, purchase power, transmission service, 
interest, and deferred expenses) and repay Federal investments and 
other assigned costs.
    Scheduling, Accounting, and Billing Procedures (SABPs): The SABP 
establish the parameters for scheduling, accounting, and billing 
procedures as they relate to LAP power deliveries. They are intended to 
implement the terms of a contract, not to modify or amend the contract.
    Webex: Webex is an online secure invite-only meeting platform used 
by WAPA. The general website is https://doe.webex.com.
    Western Energy Imbalance Service Market (WEIS Market): The market 
for imbalance energy administered by the Southwest Power Pool in the 
Western Interconnection. The market footprint encompasses the loads and 
resources that are located within a participating Balancing Authority 
Area. The Western Area Colorado Missouri Balancing Authority or WACM 
(operated by RMR) and the Western Area Upper Great Plains West 
Balancing Authority or WAUW (operated by UGP) are both participating 
Balancing Authority Areas.
    Winter Storm Uri: A severe winter storm in February 2021 that had 
widespread impacts across the RMR and UGP regions.

Effective Date

    The Provisional Formula Rate Schedules L-F12, Firm Electric 
Service, and L-M3, Sale of Surplus Products, will take effect on the 
first day of the first full billing period beginning on or after 
January 1, 2023, and will remain in effect through December 31, 2027, 
pending approval by FERC on a final basis or until superseded.

Public Notice and Comment

    RMR followed the Procedures for Public Participation in Power and 
Transmission Rate Adjustments and Extensions, 10 CFR part 903, in 
developing these formula rates. The steps RMR took to involve 
interested parties in the rate process include:
    1. On May 25, 2022, a Federal Register notice (87 FR 31876) 
(Proposed FRN) announced the proposed formula rates and launched the 
90-day public consultation and comment period.
    2. On May 25, 2022, RMR notified Preference Customers and 
interested parties of the proposed rates and provided a copy of the 
published Proposed FRN.
    3. On June 15, 2022, RMR held a public information forum via Webex. 
RMR's representatives explained the proposed formula rates, answered 
questions, and gave notice that more information was available in the 
Customer Rate Brochure.
    4. On June 29, 2022, RMR held a public comment forum via Webex to 
provide an opportunity for customers and other interested parties to 
comment for the record.
    5. RMR provided a website that contains important dates, letters, 
presentations, FRNs, Customer Rate Brochure, and other information 
about this rate process. The website is located at www.wapa.gov/regions/RM/rates/Pages/2023-Rate-Adjustment-Firm-Power.aspx.
    6. During the 90-day consultation and comment period, which ended 
on August 23, 2022, RMR received one oral comment submission and four 
comment letters, encompassing a total of 22 individual comments. The 
individual comments and RMR's responses are addressed in the 
``Comments'' section. All comments have been considered in the 
preparation of this Rate Order.
    Oral comments were received from the following organization:

Mid-West Electric Consumers Association, Colorado

    Written comments were received from the following organizations:
Loveland Area Customer Association, Colorado
Platte River Power Authority, Colorado
Mid-West Electric Consumers Association, Colorado
East River Electric Power Cooperative, Inc., South Dakota

Power Repayment Study--Firm Electric Service Rate Discussion

    PRSs are prepared each FY to determine if revenues will be 
sufficient to repay, within the required time, all costs assigned to 
the Pick-Sloan Missouri Basin Program (P-SMBP) and the Fry-Ark. 
Repayment criteria are based on applicable laws and legislation, as 
well as policies including Order RA 6120.2. To meet the Cost Recovery 
Criteria outlined in Order RA 6120.2, RMR developed a rate adjustment 
to demonstrate sufficient revenues will be collected under the 
Provisional Formula Rates to meet future obligations. The revenue 
requirement of the Fry-Ark PRS is combined with the P-SMBP--WD revenue 
requirement, derived from the P-SMBP PRS, to develop one rate for LAP 
firm electric service. The revenue requirement and composite rate for 
LAP firm electric service are being increased, as indicated in Table 1:

            Table 1--Comparison of Existing and Provisional Revenue Requirements and Composite Rates
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                                                                     Existing       Provisional
                                                                   requirements    requirements
                      Firm electric service                       under L-F11 as  under L-F12 as  Percent change
                                                                   of January 1,   of January 1,
                                                                       2018            2023
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LAP Revenue Requirement (million $).............................           $64.1           $74.7            16.5
Pick-Sloan--WD \1\..............................................            50.8            58.6            15.4
Fry-Ark.........................................................            13.3            16.1            21.1
Composite Rate (mills/kWh)......................................           31.44           36.61            16.4
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\1\ Additional information on the overall P-SMBP PRS and charge components can be found under Rate Order No.
  WAPA-203 and on UGP's website at www.wapa.gov/regions/UGP/Rates/Pages/2023-firm-rate-adjustment.aspx.


[[Page 70802]]

Firm Electric Service--Existing and Provisional Formula Rates

    Under the current rate methodology, rates for LAP firm electric 
service are designed to recover an annual revenue requirement that 
includes investment repayment (including aid to irrigation), interest, 
purchase power, OM&R, and other expenses within the allowable period. 
The annual revenue requirement continues to be allocated equally 
between capacity and energy.
    The Base component costs for the P-SMBP PRS have increased 
primarily due to: (1) increased OM&R from WAPA and the generating 
agencies; (2) increased purchase power, including during the Winter 
Storm Uri; (3) pricing volatility; (4) reduced surplus energy sales; 
and (5) the loss of certain balancing authority revenues for services 
that are no longer provided after RMR joined the WEIS Market. Winter 
Storm Uri was not a water or generation issue; therefore, its costs 
only impact the Base component.
    The Base component costs for the Fry-Ark PRS have increased due to: 
(1) increased O&M from both WAPA and Reclamation; (2) increased 
purchase power, transmission, and ancillary services costs; (3) changes 
in costs related to Reclamation's Mt. Elbert Rehabilitation project; 
and (4) price volatility.
    The driver behind the P-SMBP PRS Drought Adder component increase 
is the AOP projecting less than average generation for the next several 
years in the P-SMBP mainstem dams. Uncertainties with water inflows, 
hydro generation, and replacement energy prices continue to pose 
potential risks for meeting firm power contractual commitments.
    The net effect of these changes to the PRS Base and Drought Adder 
components results in an overall increase to the LAP rate. A comparison 
of the existing and Provisional Formula Rates for firm electric service 
is shown in Table 2:

                          Table 2--Comparison of Existing and Provisional Formula Rates
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                                                                     Existing       Provisional
                                                                   charges under   charges under
                                                                  rate  schedule  rate  schedule
                      Firm electric service                         L-F11 as of     L-F12 as of   Percent change
                                                                    January 1,      January 1,
                                                                       2018            2023
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Firm Capacity Rate ($/kWmonth)..................................           $4.12           $4.80            16.5
Firm Energy Rate (mills/kWh)....................................           15.72           18.31            16.5
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    As a part of the existing and provisional rate schedule, RMR 
provides for a formula-based adjustment of the Drought Adder component, 
with an annual increase of up to 2 mills/kWh each year. The 2 mills/kWh 
cap places a limit on the amount the Drought Adder component can be 
adjusted upward relative to associated drought costs included in the 
Drought Adder formula rate for any 1-year cycle. The Drought Adder 
component may be adjusted downward by any amount. Continuing to 
identify the firm electric service revenue requirement using Base and 
Drought Adder components will assist the Regions in presenting the 
future impacts of droughts, demonstrate repayment of drought-related 
costs in the PRSs, and allow the Regions to be more responsive to 
changes caused by drought-related expenses. RMR will continue to charge 
and bill its customers firm electric service rates for energy and 
capacity, which are the sum of the Base and Drought Adder components.
    Under Rate Schedule L-F12, RMR will continue to identify its LAP 
firm electric service revenue requirement using Base and Drought Adder 
components. The Base component is a fixed revenue requirement from each 
PRS that includes annual O&M, investment repayment and associated 
interest, Normal Timing Power Purchases, and transmission costs. RMR 
cannot adjust the Base component without a public process. The Drought 
Adder component is a formula-based revenue requirement from each PRS 
that includes costs attributable to drought conditions in the Regions. 
The Drought Adder component includes costs associated with future Non-
timing Power Purchases to meet firm electric service contractual 
obligations not covered with available system generation due to a 
drought, previously incurred Deficits due to purchased power debt that 
resulted from Non-timing Power Purchases made during a drought, and the 
interest associated with drought-related Deficits. The Drought Adder 
component is designed to repay drought-related Deficits within 10 years 
from the time the Deficit was incurred, using balloon-payment 
methodology. For example, a drought-related Deficit incurred in FY 2022 
will be repaid by FY 2032.
    The annual revenue requirement calculation will continue to be 
summarized by the following formula: Annual Revenue Requirement = Base 
Revenue Requirement + Drought Adder Revenue Requirement.
    The Provisional charge components update the Base component with 
present costs from a revenue requirement of $64.1 million to $67.8 
million and increases the Drought Adder component revenue requirement. 
For rate year 2023, the Drought Adder revenue requirement increases 
from zero to $6.8 million.\5\ A comparison of the existing and 
provisional components is shown in Table 3:
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    \5\ The exact values are $64,143,960, $67,839,200, and 
$6,838,720 respectively.

[[Page 70803]]



                                           Table 3--Summary of LAP Existing and Provisional Charge Components
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                                           Existing charges under rate schedule L-F11 as   Provisional charges under rate schedule L-F12
                                                        of January 1, 2018                             as of January 1, 2023
          Firm electric service          ------------------------------------------------------------------------------------------------ Percent change
                                               Base        Drought adder                       Base        Drought adder
                                             component       component     Total charge      component       component     Total charge
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Firm Capacity ($/kWmonth)...............           $4.12              $0           $4.12           $4.36           $0.44           $4.80            16.5
Firm Energy (mills/kWh).................           15.72               0           15.72           16.63            1.68           18.31            16.5
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    RMR reviews the inputs for the P-SMBP and Fry-Ark PRS Base and 
Drought Adder components after the annual PRSs are complete, generally 
in the first quarter of the calendar year. If an adjustment to the LAP 
Base component is necessary, or if an incremental upward adjustment to 
the LAP Drought Adder component greater than the equivalent of 2 mills/
kWh to the LAP Rate is necessary, RMR will initiate a public process 
pursuant to 10 CFR part 903 prior to making an adjustment.
    In accordance with the approved annual Drought Adder adjustment 
process, the PRS Drought Adder components are reviewed annually in 
early summer to determine if drought costs differ from those projected 
in the PRSs. In October, RMR will determine if a change to the LAP 
Drought Adder component is necessary, either incremental or 
decremental. Any incremental adjustment to the Drought Adder component, 
up to 2 mills/kWh, or decremental adjustment will be implemented in the 
following January billing cycle. Although decremental adjustments to 
the Drought Adder component will occur as drought costs are repaid, the 
adjustments cannot result in a negative Drought Adder component. 
Implementing the Drought Adder component adjustment on January 1 of 
each year will help keep the drought-related Deficits from escalating 
as quickly, will lower the interest expense due to drought-related 
Deficits, will demonstrate responsible Deficit management, and will 
provide prompt drought-related Deficit repayments.

Statement of Revenue and Related Expenses

    The following Table 4 provides a summary of the projected revenue 
and expense data for the Fry-Ark revenue requirement during the 5-year 
rate-setting periods:

                               Table 4--Fry-Ark Comparison of 5-Year Rate Periods
                                           Total Revenues and Expenses
----------------------------------------------------------------------------------------------------------------
                                                                                    Provisional
                                                                   Existing rate   rate FY2023-     Difference
                                                                   FY2018-FY2022  FY2027  ($000)      ($000)
                                                                      ($000)
----------------------------------------------------------------------------------------------------------------
            Total Revenues......................................         $91,392        $114,466         $23,074
----------------------------------------------------------------------------------------------------------------
Revenue Distribution:
Expenses........................................................
    O&M.........................................................          31,334          38,760           7,426
    Purchase Power..............................................             724           1,378             654
    Transmission................................................          18,302          20,182           1,880
    Ancillary Services..........................................             979           6,513           5,534
    Interest....................................................          14,779          12,446          -2,333
                                                                 -----------------------------------------------
        Total Expenses..........................................          66,118          79,279          13,161
----------------------------------------------------------------------------------------------------------------
Principal Payments:
    Capitalized Expenses (Deficits).............................               0               0               0
    Original Project and Additions..............................          14,893          12,873          -2,020
    Replacements................................................          10,381          22,314          11,933
                                                                 -----------------------------------------------
        Total Principal Payments................................          25,274          35,187           9,913
----------------------------------------------------------------------------------------------------------------
        Total Revenue Distribution..............................          91,392         114,466          23,074
----------------------------------------------------------------------------------------------------------------

    The summary of the P-SMBP projected revenues and expenses for the 
5-year rate-setting periods is included in the P-SMBP Statement of 
Revenue and Related Expenses that is part of Rate Order No. WAPA-203.

Sale of Surplus Products Rate Discussion

    The sale of surplus products rate schedule is formula-based, 
providing for LAP Marketing Office to sell LAP surplus energy and 
capacity products. If LAP surplus products are available, as specified 
in the rate schedule, the charge will be based on market rates plus 
administrative costs. The customer will be responsible for acquiring 
transmission service necessary to deliver the product(s) for which a 
separate charge may be incurred. Rate Schedule L-M2 is being superseded 
by the Provisional Rate Schedule L-M3 and continues to allow for the 
sale of energy, frequency response, regulation, and reserves.

Comments

    RMR received a total of 22 individual oral and written comments 
during the public consultation and comment period. The comments 
expressed have been paraphrased and/or combined,

[[Page 70804]]

where appropriate, without compromising the meaning of the comments:
    A. Comment: A customer association and a Customer commented that 
WAPA contends that its participation in the WEIS Market is increasing 
the cost to the LAP Customers in the form of administrative fees and 
lost ancillary service revenue. With the recent addition of Colorado 
Springs Utilities, and, in April 2023, the utilities that comprise the 
Public Service Company of Colorado balancing authority area members, 
the WEIS Market Footprint will increase in size and resource diversity. 
Thus, there is a reasonable expectation that benefits could accrue to 
LAP in the form of a reduced administrative fee and co-optimized real-
time energy dispatch. WAPA and the Customers should regularly monitor 
the WEIS Market for net benefits accrued to LAP and should refrain from 
assuming the Drought Adder will be required until WAPA has experience 
in the WEIS Market. They request a commitment to evaluate a downward 
rate adjustment should these anticipated benefits accrue.
    Response: Participation in the WEIS Market required RMR to change 
some of the Base component projections in the Fry-Ark and Pick-Sloan 
PRSs, for both revenue and expense. These changes are a very small 
contributor to the Base component increases in comparison to other 
contributors, such as O&M and Normal Timing Power Purchases and has no 
impact on the need for, or the size of, the P-SMBP Drought Adder. RMR 
has and will continue to monitor the WEIS Market for potential 
benefits, but due to the nature of the LAP Marketing Plan, LAP has very 
little surplus generation that can be bid into the WEIS Market. Also, 
RMR has been actively working to ensure the costs, and any benefits, we 
accrue through our participation are recovered in the appropriate rate 
design(s) as soon as practical. RMR, in coordination with UGP, is 
committed to developing rates that are the lowest possible, consistent 
with sound business principles, which includes an annual evaluation of 
the Base components and a biannual evaluation of the Drought Adder 
components. The Drought Adder components can be annually reduced 
without a cap, or increased subject to a 2 mills/kWh cap, without a 
public process, based on this evaluation.
    B. Comment: A customer association and a Customer noted the P-SMBP 
PRS assumed a below average generation profile on a median runoff 
scenario from the Corps, factoring in unit and transmission outages. 
Their understanding is that this outcome was used to calculate the 
Drought Adder component for the P-SMBP--WD, resulting from a projected 
deficit of generation that will be replaced by purchased power over the 
study period. They stated they would like the Regions to rerun the PRS 
to assess the impact to the proposed Drought Adder using an average 
generation profile in the P-SMBP--WD to satisfy the cost recovery 
criteria under Order RA 6120.2. Alternatively, the Regions could follow 
its normal formula rate process to account for actual generation, 
rather than working from assumptions that presume a deficit of 
generation.
    Response: As standard practice, the P-SMBP PRS includes separate 
generation projections for the P-SMBP--ED and the P-SMBP--WD and the 
resulting power purchases and surplus energy sales are assigned to the 
overall P-SMBP revenue requirement. The overall P-SMBP revenue 
requirement is then allocated between P-SMBP--ED and P-SMBP--WD based 
on the ratio of each division's fixed amount of annual marketable 
energy to the total P-SMBP marketable energy, regardless of which 
component the revenue requirement is identified.
    UGP has historically relied upon the AOP as the source document for 
projecting the P-SMBP--ED's future purchase power needs and surplus 
energy sales in the PRS for a 5-year projection period. After this 5-
year period, the PRS assumes average P-SMBP--ED generation and no 
generation-related P-SMBP--ED power purchases or surplus energy sales 
are projected. RMR has historically relied upon Reclamation's most 
recent update to their Most Probable Inflow Operating Plan for 
projecting the P-SMBP--WD's future purchase power needs and surplus 
energy sales in the PRS for a 2-year projection period. After this 2-
year period, the PRS assumes average P-SMBP--WD generation and no 
generation-related P-SMBP--WD power purchases or surplus energy sales 
are projected. The 2023 Rate-setting PRS continues these historical 
practices.
    The 2023 Rate-setting PRS utilized the Corp's Final 2021-2022 AOP 
dated December 17, 2021, that projected nearly 20 percent lower 
generation for FYs 2022 and 2023 and just under or at normal generation 
for FYs 2024-2027 (to our knowledge, the AOP does not factor in 
transmission outages as stated in the comment) and Reclamation's 2022-
2024 plans, received in December 2021, that projected 24 percent lower 
generation for FY 2022 and just under average generation for FYs 2023-
2024. Reclamation's plans took into consideration reservoir inflows 
that were 67 percent of average and reservoir storage that was at 99 
percent of average as of October 2021 and unit and transmission 
maintenance schedules.
    Utilizing these generation plans, the 2023 Rate-setting PRS 
includes higher levels of power purchases to meet UGP firm contractual 
commitments, a reduced amount of surplus energy sales for P-SMBP--ED, 
and Normal Timing Power Purchases and surplus energy sales for P-SMBP--
WD (since P-SMBP--WD was not formally considered to be in a drought 
condition). Since the P-SMBP--ED was considered to be in a drought 
condition, in accordance with our established methodology, a second or 
``base'' study was completed. This ``base'' study removed the P-SMBP--
ED's future drought-related power purchase costs and added back in the 
P-SMBP--ED's Normal Timing Power Purchases and normal surplus energy 
sales (essentially simulating what the PRS would look like under a non-
drought, or normal, condition for both P-SMBP--ED and P-SMBP--WD). The 
revenue requirement difference between these two PRSs is the revenue 
requirement for the proposed Drought Adder. There is no need to rerun 
these PRSs to assess the impact to the proposed Drought Adder using an 
average generation profile in the P-SMBP--WD since the PRSs already 
utilize Normal Timing Power Purchases and normal surplus energy sales 
for P-SMBP--WD.
    C. Comment: A customer association suggests that concurrent with 
this rate adjustment, the Regions perform a comparison of the unpaid 
federal investment balances versus the depreciated balances of the P-
SMBP investments to determine if the unpaid investments balances are 
greater than the depreciated balances at the present point in the asset 
service lives. They would appreciate the opportunity to review this 
analysis to gauge the reasonableness of the Drought Adder approach. 
They note the Regions have performed analyses such as these in the 
past, and they believe that it would be beneficial again when analyzing 
both Deficits and rate adders. Given the pressures to consumers, they 
believe that this information could be useful to avoid excessive 
Drought Adders and keep rates stable, and to allow the system to 
function as intended. They contend that based on conversations and 
points raised during informal discussions, they believe that there is a 
sensitivity to taking drought-related Deficits in the PRSs, and that 
Deficits may be considered bad financial practice to those reviewing 
rate

[[Page 70805]]

activities. Taking reasonable Deficits for purchased power is a 
longstanding practice that is based on the fact that historic shortages 
and surpluses occur over time, and that over the long run, these 
Deficits have always been paid, even during extreme droughts over the 
past 30-40 years. They are part of the financial flexibility necessary 
because WAPA is unable to accumulate rate stabilization funds during 
good water years and can only use surpluses to pay existing investments 
ahead of time. Without accumulated funds, taking Deficits provides a 
counterbalance that keeps rates stable and are part of good financial 
practice for short periods of time. Key to these Deficits is knowing 
when they continue to be reasonable and when they can no longer be 
sustained.
    Response: As noted, Deficits are an integral and longstanding 
component of WAPA's repayment methodology and the Regions do utilize 
them in the PRSs when appropriate (in accordance with Order RA 6120.2). 
The P-SMBP PRS incurred a $92.7 million Base-related Deficit in FY 2021 
as the result of various issues related to Winter Storm Uri. Also in FY 
2021, P-SMBP--ED had lower than normal generation, though no adjustment 
to the Drought Adder component was implemented. The P-SMBP--ED 
projected generation for FY 2022 utilized in the 2023 Rate-setting PRS 
is estimating a $76.6 million drought-related Deficit in FY 2022. 
Payments toward these two Deficits are projected to be made over a 7-
year time frame with final repayment projected in FY 2028. During this 
7-year repayment plan, the 2023 Rate-setting PRS is projecting annual 
interest payments associated with these Deficits. The Regions agree it 
would be beneficial to prepare an analysis of the unpaid balances 
compared to the depreciated balances of the P-SMBP investments and will 
provide Customers/customer groups with an opportunity to review once 
the analysis is completed.
    D. Comment: A customer association commented that they believe the 
current proposal may be an overly sensitive reaction to water 
conditions and may lead to rate instability as Drought Adders continue 
to be taken on and off, sometimes with significant rate increases like 
this one. At present, they note that there is no drought-related 
Deficits to which these added revenues could really be applied (pending 
final purchases and the application of revenues for FY 2022). They urge 
the Regions to use caution in implementing a practice that may 
eventually preclude the taking of Deficits, with a replacement policy 
of covering any drought-related purchases during the year of 
occurrence, regardless of the effects of good water over time. Paid-
ahead investments may become a standard with no offsetting 
consideration.
    Response: The commentor is correct that at present, there are no 
actual drought-related Deficits in the P-SMBP 2023 Rate-setting PRS, 
only the projected $76.6 million drought-related Deficit in FY 2022. 
The proposed rates will not be effective until January 2023, and the 
AOP is projecting lower-than-average generation in FY 2023, with FY 
2023 being the third consecutive year of lower-than-average generation 
on the P-SMBP mainstem. A review of the Regions' actual purchase power 
costs at a point more than halfway through FY 2022 indicates the 
projected costs for FY 2022 may be conservative, which will likely 
result in a larger than estimated Deficit for FY 2022.
    During the rate formulation timeframe (end of 2021/beginning of 
2022), the Regions ran multiple PRS scenarios using various purchase 
power and surplus energy sales assumptions (based on hydrology, 
generation outlook, and price volatility information available at that 
time), while also considering the fact there are required investment 
payments coming due within the cost evaluation period. The Regions 
ultimately settled on a profile that resulted in a projected drought-
related Deficit being incurred in FY 2022, before the proposed Drought 
Adders could take effect in January 2023. The Regions appreciate the 
commentor's concerns over rate stability and rate-making decisions. The 
Region's decision to implement the proposed Drought Adder did consider 
risks and impacts and was in no way an attempt to preclude the taking 
of Deficits, which are an integral part of WAPA's repayment 
methodology, and which is evident in the FY 2021 Base-related Deficit 
as well as the projected FY 2022 drought-related Deficit. In fact, the 
Regions chose to implement the full amount of the P-SMBP Drought Adder 
through the rate process, rather than implement 2 mills/kWh of it 
through the Drought Adder adjustment process, so there would be 
transparency and opportunity for public input.
    E. Comment: A customer association and a Customer commented that 
they support the comments of their member utilities, fellow customer 
associations, and other customer groups.
    Response: The Regions appreciate the commentors' feedback. The 
Regions conducted a combined public process for the rate adjustments 
under Rate Order Nos. WAPA-202 and WAPA-203 and have coordinated all 
responses. Comments received specifically by UGP for the P-SMBP--ED 
rate process are recognized as being addressed in UGP's Rate Order No. 
WAPA-203.
    F. Comment: A customer association and a Customer provided various 
comments related to the Mt. Elbert Powerplant such as: (1) they are 
aware that Mt. Elbert is experiencing increased maintenance costs and 
will very likely require future major maintenance that will put an 
upward pressure on rates, (2) the form in which customers can use Mt. 
Elbert through the SABPs may be out of alignment with the West's 
changing energy market paradigms; for example, Mt. Elbert may be better 
used to meet resource adequacy requirements, and (3) they support 
having ongoing discussions and want to ensure that future costs to 
rehabilitate Mt. Elbert come with commensurate benefits to the whole, 
which may require a change in how Mt. Elbert's value is captured in an 
organized energy market and appropriately credited to customers.
    Response: The SABPs, Customers' use of Mt. Elbert, and potential 
future organized energy markets are outside the scope of this rate 
process; however, RMR appreciates the comments and is committed to 
ongoing discussions related to the use of Mt. Elbert and how to address 
future rehabilitation costs and potential benefits.
    G. Comment: A Customer commented that benefits may be realized, and 
costs mitigated, in a future RTO like Southwest Power Pool's RTO West. 
The full picture of both costs and benefits from participation are 
unknown today, but the customer suggests the Regions wait to assess the 
need for a Drought Adder until the impacts of the future RTO West are 
known.
    Response: The possibility of participation in an RTO is outside of 
the scope of this rate process; however, RMR appreciates the comment 
and recognizes there could be benefits from participation in an RTO and 
is actively engaged in exploring various market opportunities. Since 
WAPA has not made a decision on joining a RTO West market, RMR has not 
included estimated operations costs, estimated benefits, or estimated 
implementation costs. In the meantime, implementation of a Drought 
Adder under the formula rate is not dependent on potential future 
uncertain events and timelines. The design of the Drought Adder formula 
is flexible enough to be reduced each year should any such benefits 
reduce the need for the Drought Adder.
    H. Comment: A customer association and member utility commented 
that

[[Page 70806]]

they understand a rate increase is warranted due to several factors: 
(1) persistent low water conditions in the P-SMBP--ED, (2) increasing 
market power pricing, (3) costs incurred during the Winter Storm Uri, 
and (4) inflation on O&M and capital investments for the system. They 
encourage WAPA to continue focus on identifying and reducing 
controllable costs within the Regions and at WAPA's Headquarters.
    Response: The Regions appreciate the commentors' recognition of the 
specific costs and repayment obligations of the PRSs and the need for 
the rate adjustments. The Regions are committed to developing rates 
that are the lowest possible, consistent with sound business 
principles.
    I. Comment: A customer association commented that they recommend 
the Rates staff and Regional leadership continue to meet regularly with 
the Mid-West Electric Consumers Association's (Mid-West) Water and 
Power Committee on a quarterly basis to update and advise the members 
on the latest information on hydrology outlook, power supply costs, 
system storage, and potential need for future adjustments as this will 
allow more advance notice for dealing with future issues.
    Response: Customer meeting attendance is outside the scope of this 
rate process; however, the Regions do intend to continue communication 
with our Customers and customer groups as appropriate.
    J. Comment: A customer association and member utility request WAPA 
staff continue transparent engagements with the Customers and customer 
groups to better understand WAPA's efforts to control and mitigate 
costs, rate impacts, impacts of drought conditions, importance of rate 
stability, and need for risk mitigation through regular meetings with 
the Mid-West Water and Power Committee and impacted customer groups. 
The strong collaboration between customers and WAPA benefits everyone 
and improves the value we all provide to the consumer-owners at the end 
of the line.
    Response: The Regions appreciate the support of our Customers and 
customer groups and agree that collaboration is vital when faced with 
uncertain drought conditions and other impacts to the firm power rates. 
The Regions intend to continue communication with our Customers and 
customer groups as appropriate.
    K. Comment: The customer association and member utility commented 
that they appreciated the efforts of the UGP and RMR Rates staff for 
understanding Customer concerns regarding the rate.
    Response: The Regions thank the commentors for recognizing the UGP 
and RMR Rates staff and their efforts to ensure Customer concerns are 
addressed.
    L. Comment: A customer association and a member utility commented 
their customers are already feeling the impacts of the current drought 
in the P-SMBP--ED and understand the need for the Drought Adder and the 
process for the Drought Adder evaluation. They requested debt strategy 
and rate design options be discussed with customers before any final 
decisions are made as a part of the annual Drought Adder review 
process.
    Response: The Regions agree with the need for continued 
transparency regarding debt strategy and rate options related to the 
annual Drought Adder adjustment process. The proposed rates did not 
reflect any change to the Regions' existing rate designs or annual 
Drought Adder adjustment process. Changes to the rate designs or 
adjustment process would require a separate rate process where 
Customers and interested parties would have the opportunity to 
participate in the process. The 2007 rate orders implementing the 
Drought Adder component provided the framework for the annual Drought 
Adder adjustment process, which hasn't been modified in subsequent rate 
orders.
    M. Comment: The member utility encourages WAPA to focus on its core 
function of marketing and delivering Preference Power to Preference 
Customers.
    Response: The Regions appreciate the comment and intend to continue 
to fulfill our mission of marketing to Preference Power Customers 
consistent with current marketing plans.
    N. Comment: The customer association and member utility appreciated 
the opportunity to comment on the rate process, stating that any rate 
increase has a direct impact on the energy affordability of the members 
it serves.
    Response: The Regions recognize the impact of the rate increases on 
Customers and strive to find ways to mitigate impacts of the drought 
and operational costs to keep rates as low as possible.

Certification of Rates

    I have certified that the Provisional Formula Rates for LAP firm 
electric service under Rate Schedule L-F12 and LAP sale of surplus 
products under Rate Schedule L-M3 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, PRSs, comments, letters, memorandums, and other supporting 
materials that were used to develop the Provisional Formula Rates, is 
available for inspection and copying at the Rocky Mountain Regional 
Office located at 5555 East Crossroads Boulevard, Loveland, Colorado. 
Many of these documents are also available on RMR's website at 
www.wapa.gov/regions/RM/rates/Pages/2023-Rate-Adjustment_-Firm-
Power.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). Categorically 
excluded projects and activities do not require preparation of either 
an environmental impact statement or an environmental assessment.\6\ A 
copy of the categorical exclusion determination is available on WAPA's 
website at www.wapa.gov/regions/RM/environment/Pages/CX2022.aspx.
---------------------------------------------------------------------------

    \6\ 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).
---------------------------------------------------------------------------

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-202. 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

[[Page 70807]]

and approved; or (3) such rates are superseded.

Signing Authority

    This document of the Department of Energy was signed on November 9, 
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 16, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

Rate Schedule L-F12

(Supersedes Rate Schedule L-F11)

Effective January 1, 2023

United States Department of Energy

Western Area Power Administration

Rocky Mountain Region

Loveland Area Projects

Firm Electric Service

(Approved Under Rate Order No. WAPA-202)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2023, and extending through December 31, 2027, or 
until superseded by another rate schedule, whichever occurs earlier.

Available

    Within the marketing area served by the Loveland Area Projects 
(LAP) (consisting of the Fryingpan-Arkansas Project and the Pick-Sloan 
Missouri Basin Program--Western Division, which were integrated for 
marketing and rate-making purposes in 1989); parts of Colorado, Kansas, 
Nebraska, and Wyoming.

Applicable

    To the LAP firm electric service delivered at specific point(s) of 
delivery, as established by contract.

Character

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

Formula Rate and Charge Components

LAP Firm Electric Service Rate (Rate) = Base component + Drought Adder 
component

Monthly Charge as of January 1, 2023, Under the Rate

    Capacity Charge: $4.80 per kilowatt per month (kWmonth) of billing 
capacity.
    Energy Charge: 18.31 mills per kilowatt-hour (kWh) of monthly 
entitlement.
    Billing Capacity: Unless otherwise specified by contract, the 
billing capacity will be the seasonal contract rate of delivery.

Charge Components

    Base Component: A fixed revenue requirement that includes operation 
and maintenance expense, investments and replacements, interest on 
investments and replacements, normal timing power purchases (purchases 
due to operational constraints, not associated with drought), and 
transmission costs. Any proposed change to the Base component will 
require a public process. The Base revenue requirement is $67,839,200 
and the charges under the formulas are:
[GRAPHIC] [TIFF OMITTED] TN21NO22.022

    Drought Adder Component: A formula-based revenue requirement that 
includes future power purchases above normal timing power purchases, 
previous purchase power drought-related deficits, and interest on the 
purchase power drought-related deficits. As of January 1, 2023, the 
Drought Adder component revenue requirement is $6,838,720 and the 
charges under the formulas are:
[GRAPHIC] [TIFF OMITTED] TN21NO22.023


[[Page 70808]]



Annual Drought Adder Adjustment Process

    The Drought Adder component may be adjusted annually using the 
above formulas for any costs attributed to drought of less than or 
equal to the equivalent of 2 mills/kWh to the Rate. Any planned 
incremental upward adjustment to the Drought Adder component greater 
than the equivalent of 2 mills/kWh to the Rate will require a public 
process.
    The annual review process is initiated in early summer when the 
Rocky Mountain Region (RMR) reviews the Drought Adder component and 
provides notice of any estimated change to the Drought Adder component 
charge under the formula. In October, RMR will make a final 
determination of any change to the Drought Adder component charge, 
either incremental or decremental. If a Drought Adder component change 
is required, a modified Drought Adder revenue requirement and the 
associated charges will become effective the following January 1 and 
will be identified in a Drought Adder modification update. RMR will 
inform customers of updates by letter and post updates to RMR's 
external website.

Adjustments

    For Transformer Losses: If delivery is made at transmission voltage 
but metered on the low-voltage side of the substation, the meter 
readings will be increased to compensate for transformer losses as 
provided for in the contract.
    For Power Factor: None. Customers will be required to maintain a 
power factor within the range of 95-percent leading to 95-percent 
lagging, measured at the point of interconnection.

Rate Schedule L-M3

(Supersedes Rate Schedule L-M2)

Effective January 1, 2023

United States Department of Energy

Western Area Power Administration

Rocky Mountain Region

Loveland Area Projects

Sale of Surplus Products

(Approved Under Rate Order No. WAPA-202)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2023, and extending through December 31, 2027, or 
until superseded by another rate schedule, whichever occurs earlier.

Applicable

    This rate schedule applies to Loveland Area Projects (LAP) 
Marketing and is applicable to the sale of the following LAP surplus 
energy and capacity products: energy, frequency response, regulation, 
and reserves. If any of the above LAP surplus products are available, 
LAP can make the product(s) available for sale, providing entities 
enter into separate agreement(s) with LAP Marketing which will specify 
the terms of sale(s).

Formula Rate

    The charge for each product will be determined at the time of the 
sale based on market rates, plus administrative costs. The customer 
will be responsible for acquiring transmission service necessary to 
deliver the product(s), for which a separate charge may be incurred.

[FR Doc. 2022-25266 Filed 11-18-22; 8:45 am]
BILLING CODE 6450-01-P