[Federal Register Volume 89, Number 87 (Friday, May 3, 2024)]
[Notices]
[Pages 36813-36814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09665]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Falcon and Amistad Projects--Rate Order No. WAPA-216

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order extending firm power formula rate.

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SUMMARY: The extension of the Colorado River Storage Project Management 
Center's (CRSP MC) existing Falcon and Amistad projects' firm power 
formula rate has been confirmed, approved, and placed into effect on an 
interim basis. The existing formula rate under Rate Schedule Falcon and 
Amistad Projects' Firm Power Formula Rate is set to expire on June 7, 
2024. This rate extension makes no change to the existing formula rate 
and extends it through June 7, 2029.

DATES: The extended formula rate under Rate Schedule Falcon and Amistad 
Projects' Firm Power Formula Rate will be placed into effect on an 
interim basis on June 8, 2024.

FOR FURTHER INFORMATION CONTACT: Rodney G. Bailey, CRSP Manager, 
Colorado River Storage Project Management Center, Western Area Power 
Administration, P.O. Box 1800 South Rio Grande Drive, Montrose, CO 
81401, or email: [email protected], or Tamala D. Gheller, Rates 
Manager, Colorado River Storage Project Management Center, Western Area 
Power Administration, (970) 240-6545, or email: [email protected].

SUPPLEMENTARY INFORMATION: Western Area Power Administration (WAPA) 
published a Federal Register notice (Proposed FRN) on January 26, 2024 
(89 FR 5226), proposing to extend the existing formula rate under Rate 
Schedule Falcon and Amistad Projects' Firm Power Formula Rate. The 
Proposed FRN also initiated a 30-day public consultation and comment 
period. The consultation and comment period ended on February 26, 2024, 
and the CRSP MC received no comments on the proposed formula rate 
extension.

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 the Federal Energy Regulatory 
Commission (FERC). By Delegation Order No. S1-DEL-S3-2023, effective 
April 10, 2023, 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-WAPA1-2023, effective April 10, 2023, 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 extension is issued under Redelegation Order No. 
S3-DEL-WAPA1-2023 and Department of Energy rate extension procedures 
set forth in 10 CFR part 903.\1\
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    \1\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    Following review of the CRSP MC's proposal, Rate Order No. WAPA-216 
is hereby confirmed, approved, and placed into effect on an interim 
basis. This extends, without adjustment, the existing Rate Schedule 
Falcon and Amistad Projects' Firm Power Formula Rate through June 7, 
2029. WAPA will submit Rate Order No. WAPA-216 and the extended rate 
schedule 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, Extension for the 
Falcon and Amistad Projects' Firm Power Formula Rate, Rate Order No. 
WAPA-216

Order Confirming, Approving, and Placing the Falcon and Amistad 
Projects' Firm Power Formula Rate Into Effect on an Interim Basis

    The formula rate in Rate Order No. WAPA-216 is established 
following section 302 of the Department of Energy (DOE) Organization 
Act (42 U.S.C. 7152).\1\
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    \1\ 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 projects 
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 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-S3-2023, effective April 10, 2023, 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-WAPA1-2023, effective April 10, 2023, 
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 extension is issued under 
Redelegation Order No. S3-DEL-WAPA1-2023 and DOE rate extension 
procedures set forth in 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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Background

    On June 20, 2019, FERC approved and confirmed Rate Schedule Falcon 
and Amistad Projects' Firm Power Formula Rate under Rate Order No. 
WAPA-186 on a final basis for a 5-year period through June 7, 2024.\3\ 
This rate schedule applies to firm energy sales. Details about the rate 
schedule and the formula rate are viewable on Colorado River Storage 
Project Management Center's (CRSP MC) website at: www.wapa.gov/about-wapa/regions/crsp/rates/rate-order-216. The rate continues the formula-
based methodology that includes an annual update to the data in the 
rate formula, which provides adequate revenue to recover annual 
expenses, including interest expense, and repay capital investments 
within allowable time periods. This formula rate ensures repayment 
within the cost recovery criteria set forth in DOE Order RA 6120.2.
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    \3\ Order Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. EF19-3-000, 167 FERC ] 62,187 (2019).
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Discussion

    In accordance with 10 CFR 903.23(a), the CRSP MC filed a notice in 
the Federal Register on January 26, 2024, proposing to extend, without 
adjustment, Rate Schedule Falcon and

[[Page 36814]]

Amistad Projects' Firm Power Formula Rate under Rate Order No. WAPA-
216.\4\ The CRSP MC determined it was not necessary to hold public 
information or public comment forums on the proposed formula rate 
extension but provided a 30-day consultation and comment period to give 
the public an opportunity to comment on the proposed extension. The 
consultation and comment period ended on February 26, 2024, and the 
CRSP MC received no comments on the proposed formula rate extension.
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    \4\ 89 FR 5226 (2024).
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Ratemaking Procedure Requirements

Environmental Compliance

    WAPA has determined that this action fits within the following 
categorical exclusion listed in appendix B to subpart D of 10 CFR 
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. A 
copy of the categorical exclusion determination is available on CRSP 
MC's website at: www.wapa.gov/about-wapa/regions/crsp/about-crsp/environment/. Look for file titled, ``Falcon-Amistad Projects Rate 
Extension--(CX Determination 2024-2029).''

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-216, which extends the existing firm power formula 
rate under Rate Schedule Falcon and Amistad Projects' Firm Power 
Formula Rate through June 7, 2029. The rate will remain in effect on an 
interim basis until: (1) FERC confirms and approves of this extension 
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 April 29, 
2024, 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 April 30, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

Rate Schedule Falcon and Amistad Projects' Firm Power Formula Rate

United States Department of Energy Western Area Power Administration

Colorado River Storage Project Management Center

Falcon and Amistad Projects

Firm Power Formula Rate Calculation (Approved Under Rate Order No. 
WAPA-186)

    Effective: The first day of the first full billing period beginning 
on or after June 8, 1983, through June 7, 1988, or until superseded by 
another formula, whichever occurs earlier. Note: Extension of this firm 
power formula rate, for 5-year increments, was first approved by the 
Federal Power Commission, predecessor of the Federal Energy Regulatory 
Commission (FERC), on August 12, 1977. FERC has subsequently approved 
the firm power formula rate on July 20, 1988, September 29, 1993, June 
7, 1998, January 31, 2005, December 17, 2009, April 9, 2015, and June 
20, 2019, for service through June 7, 2024. [Note: This rate schedule 
was extended by Rate Order No. WAPA-216 through June 7, 2029.]
    Available: In the area served by the Falcon and Amistad Projects 
(Projects).
    Applicable: To preference customers who are under contract with 
Western Area Power Administration (WAPA) to receive electric service 
from the Projects.
    Formula Rate: The existing formula rate provides sufficient revenue 
to recover annual expenses, interest, and capital replacements within 
the cost recovery criteria set forth in DOE Order RA 6120.2. Annual 
expenses generally include operational expenses, such as salaries and 
benefits as well as incidental equipment costs. Equipment replacements 
and maintenance beyond recurring activities are considered capital 
replacements; these costs, along with the initial federal investment in 
the Projects, are amortized with interest and repaid to the U.S. 
Department of the Treasury. A reconciliation of estimates to actual 
expenses is accomplished at the end of the rate period, and any 
differences are included in the following year's revenue requirement.
    Billing: WAPA bills the South Texas Electric Cooperative, the sole 
customer that takes service from the Projects, on a monthly basis. Each 
monthly charge is equal to one twelfth of the Projects' annual rate 
installment, rounded to the penny.

[FR Doc. 2024-09665 Filed 5-2-24; 8:45 am]
BILLING CODE 6450-01-P