[Federal Register Volume 88, Number 65 (Wednesday, April 5, 2023)]
[Notices]
[Pages 20163-20165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07059]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Integrated System Power Rates

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed change to Southwestern Power Administration 
Integrated System Wholesale Rates for Hydro Peaking Power Rate Schedule 
and opportunity for public review and comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), is proposing to update the Peaking Energy Schedule 
Submission Time in Southwestern's existing Integrated System Wholesale 
Rates for Hydro Peaking Power (P-13A) Rate Schedule. Southwestern has 
determined that the shift in Peaking Energy Schedule Submission Time 
from

[[Page 20164]]

the current 2:30 p.m. CPT to the proposed 8:30 a.m. CPT provides 
Southwestern with more flexibility and greater certainty when making 
replacement power purchases, and better aligns with regional energy 
market considerations.

DATES: The consultation and comment period will begin on April 5, 2023 
and will end on May 5, 2023. Written comments are due on or before May 
5, 2023.

ADDRESSES: Comments should be submitted to Ms. Fritha Ohlson, Senior 
Vice President and Chief Operating Officer, Southwestern Power 
Administration, U.S. Department of Energy, 1 W 3rd St, Suite 1500, 
Tulsa, OK 74103.

FOR FURTHER INFORMATION CONTACT: Ms. Fritha Ohlson, Senior Vice 
President, Chief Operating Officer, Office of Corporate Operations, 
(918) 595-6684 or [email protected].

SUPPLEMENTARY INFORMATION: Originally established by Order 1865, 
Secretary of the Interior, dated August 31, 1943 and effective 
September 1, 1943 (8 FR 12142 (Sept. 3, 1943)), Southwestern is 
authorized by Congress to market the hydroelectric power and energy 
from Federal dams controlled by the U.S. Army Corps of Engineers 
(Corps), pursuant to Section 302(a)(1) of the Department of Energy 
Organization Act (42 U.S.C. 7152(a)(1)), Section 5 of the Flood Control 
Act of 1944 (16 U.S.C. 825s), and Public Law 95-456 (16 U.S.C. 825s-3). 
Guidelines for preparation of power repayment studies are included in 
Department of Energy (DOE) Order No. RA 6120.2 (Sept. 20, 1979), 
entitled Power Marketing Administration Financial Reporting. Procedures 
for public participation in power and transmission rate adjustments of 
the Power Marketing Administrations are found at title 10, part 903, 
subpart A of the Code of Federal Regulations (10 CFR part 903). 
Procedures for the confirmation and approval of rates for the Federal 
Power Marketing Administrations are found at title 18, part 300, 
subpart L of the Code of Federal Regulations (18 CFR part 300).
    Southwestern markets power from 24 multi-purpose reservoir projects 
with hydroelectric power facilities constructed and operated by the 
Corps. These projects are located in Arkansas, Missouri, Oklahoma, and 
Texas. Southwestern's marketing area includes these states plus Kansas 
and Louisiana. The costs associated with 22 of these 24 hydropower 
projects are repaid with revenues received under the Integrated System 
rates. These rates also cover the costs of Southwestern's transmission 
facilities that consist of 1,381 miles of high-voltage transmission 
lines, 27 substations, and 46 microwave and VHF radio sites. 
Additionally, Southwestern markets power from two hydropower projects 
in southeastern Texas, Sam Rayburn Dam and Robert D. Willis. These 
projects are isolated hydraulically, electrically, and financially from 
the Integrated System, and are repaid via separate rate schedules and 
therefore are not addressed in this Notice.
    On September 30, 2013, in Rate Order No. SWPA-66, the Deputy 
Secretary of Energy placed into effect Southwestern's Integrated System 
rate schedules (P-13, NFTS-13, and EE-13) on an interim basis for the 
period October 1, 2013 to September 30, 2017. The Federal Energy 
Regulatory Commission (FERC) confirmed and approved Southwestern's 
interim Integrated System rates on a final basis on January 9, 2014 for 
a period ending September 30, 2017.
    Southwestern re-designated Integrated System rate schedule ``NFTS-
13'' as ``NFTS-13A'' with no revenue adjustment. In Rate Order No. 
SWPA-71, the Deputy Secretary of Energy placed into effect 
Southwestern's rate schedule NFTS-13A on an interim basis beginning 
January 1, 2017. FERC confirmed and approved NFTS-13A on a final basis 
on March 9, 2017.
    On September 13, 2017, in Rate Order No. SWPA-72, the Deputy 
Secretary of Energy extended all of Southwestern's Integrated System 
rate schedules (P-13, NTFS-13A, and EE-13) for two years, for the 
period of October 1, 2017 through September 30, 2019.
    Southwestern re-designated Integrated System rate schedule ``P-13'' 
as ``P-13A'' with no revenue adjustment. In Rate Order No. SWPA-73, the 
Assistant Secretary for Electricity placed into effect Southwestern's 
rate schedule P-13A on an interim basis beginning July 1, 2019. FERC 
confirmed and approved P-13A on a final basis on August 29, 2019.
    On September 22, 2019, in Rate Order No. SWPA-74, the Assistant 
Secretary for Electricity extended all of Southwestern's Integrated 
System rate schedules (P-13A, NFTS-13A, EE-13) for two years, for the 
period of October 1, 2019 through September 30, 2021.
    On August 30, 2021, in Rate Order No. SWPA-77, the Administrator, 
Southwestern, extended all of Southwestern's Integrated System rate 
schedules (P-13A, NFTS-13A, EE-13) for two years, for the period of 
October 1, 2021 through September 30, 2023.

Decision Rationale

    The proposed update to Section 4.2, Peaking Energy Schedule 
Submission Time, establishes the Peaking Energy Schedule Submission 
Time as on or before 8:30 a.m. Central Prevailing Time (CPT) of the day 
preceding the day for delivery of Peaking Energy. Additionally, the 
proposed update to Section 4.2.2, Procedure for Adjusting the Peaking 
Energy Schedule Submission Time, allows the Southwestern Administrator 
to adjust the Peaking Energy Schedule Submission Time once annually to 
a time no earlier than 8:00 a.m. CPT and no later than 9:00 a.m. CPT. 
There is no change in annual revenues associated with the proposed P-
13A Rate Schedule change.
    Southwestern must at times make replacement capacity and energy 
purchases to fulfill its contractual obligations associated with the 
delivery of Hydro Peaking Power as required through the majority of 
Power Sales Contracts that utilize Southwestern's Integrated System 
rate schedules. Historically, a significant portion of needed 
replacement power purchases were made through pre-arranged Purchase 
Power Agreements (PPAs), many of which were capacity and energy ``call 
options'' that allowed Southwestern to schedule the energy as needed 
after the Peaking Energy Schedule Submission Time of 2:00 p.m. or 2:30 
p.m. In recent months, the number of PPAs available to Southwestern has 
decreased and the pricing of available PPAs has increased. Southwestern 
has also recently become a Financial-Only Market Participant of the 
Midcontinent Independent System Operator (MISO), which enables 
Southwestern to make energy purchases from the MISO Day-Ahead Market. 
The MISO Day-Ahead Market closes bidding at 9:30 a.m. CPT every day. In 
order to best utilize the MISO Day-Ahead Market as a cost-competitive 
option for replacement energy purchases, Southwestern must have 
increased certainty about its Peaking Energy obligations before 9:30 
a.m. the day before the Peaking Energy will be delivered. Earlier day-
ahead certainty of Peaking Energy schedules will also likely provide 
Southwestern with better options when seeking new PPAs. Many of 
Southwestern's customers have expressed support for such a change. 
Therefore, Southwestern determined that it would pursue shifting its 
Peaking Energy Schedule Submission Time from 2:30 p.m. CPT to 8:30 a.m. 
CPT.
    The title of the P-13A Rate Schedule will be changed to P-13B to 
reflect

[[Page 20165]]

update to Section 4.2. A redlined version of the P-13A Rate Schedule, 
which shows the revision proposed by the P-13B Rate Schedule, will be 
made available upon request.

Public Review and Comment

    In accordance with 10 CFR part 903, Southwestern's proposed change 
to its P-13A Rate Schedule is considered a minor rate adjustment, as 
there is no change in annual revenues. 10 CFR part 903 provides that 
neither a public information forum nor a public comment forum is 
required in conjunction with the consultation and comment period for a 
minor rate adjustment. Therefore, Southwestern finds that holding a 
public information and comment forum in conjunction with the 
consultation and comment period is not necessary. In accordance with 10 
CFR 903.14, Southwestern is initiating a 30-day consultation and 
comment period (see DATES section) during which Southwestern will 
accept written comments from interested persons.
    Following review and consideration of written comments, the 
Administrator will determine whether to confirm, approve, and place the 
proposed P-13B Rate Schedule into effect on an interim basis, and 
subsequently submit to the Federal Energy Regulatory Commission (FERC) 
for confirmation and approval on a final basis. The FERC will allow the 
public an opportunity to provide written comments on the proposed rate 
schedule change before making a final decision.

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 Southwestern's Administrator; (2) the 
authority to confirm, approve, and place such rates into effect on an 
interim basis to the Deputy Secretary of Energy; and (3) the authority 
to confirm, approve, 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-SWPA1-2022, 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 the Administrator, Southwestern.

Environmental Impact

    Southwestern previously determined that the rate change actions, 
placed into effect on October 1, 2013, fit within the following class 
of categorically excluded actions as listed in Appendix B to Subpart D 
of 10 CFR part 1021, DOE's Implementing Procedures and Guidelines of 
the National Environmental Policy Act of 1969, as amended (42 U.S.C. 
4321-4347): B4.3 (Electric power marketing rate changes). Categorically 
excluded actions do not require preparation of either an environmental 
impact statement or an environmental assessment. On March 14, 2023, 
Southwestern determined that categorical exclusion B4.3 applies to the 
current action as well.

Determination Under Executive Order 12866

    Southwestern 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 March 27, 
2023, by Mike Wech, Administrator for Southwestern 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 DOE. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on March 31, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-07059 Filed 4-4-23; 8:45 am]
BILLING CODE 6450-01-P