[Federal Register Volume 90, Number 131 (Friday, July 11, 2025)]
[Notices]
[Pages 30924-30929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12992]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Loveland Area Projects--Rate Order No. WAPA-219
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order concerning transmission and ancillary
services formula rates.
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SUMMARY: The formula rates for the Rocky Mountain region's (RMR)
Loveland Area Projects (LAP) transmission and ancillary services for
RMR's costs to be recovered under the Southwest Power Pool's (SPP) Open
Access Transmission Tariff (Tariff) should RMR decide to become a
member of SPP, have been confirmed, approved, and placed into effect on
an interim basis (Provisional Formula Rates). If RMR decides to become
a member of SPP, these new formula rates under Rate Schedules LAPT-ATRR
(transmission), LAPT-DCTIE-IMEU (incremental market efficiency use
share), and LAPT-AS1 (scheduling, system control, and dispatch) will
supersede the existing formula rates for transmission and ancillary
services under Rate Schedules L-NT1, L-FPT1, L-NFPT1, L-NFJDT, L-UU1,
L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6, L-AS7, and L-AS9, which
expire on September 30, 2026.
DATES: The Provisional Formula Rates under Rate Schedules LAPT-ATRR,
LAPT-DCTIE-IMEU, and LAPT-AS1 are effective on the first day of the
first full billing period beginning on the later of the following
events: (1) when RMR officially becomes a member of, and transfers
functional control of LAP transmission facilities to, SPP; or (2) the
go-live date of the expansion of the SPP Regional Transmission
Organization into the Western Interconnection (scheduled for April 1,
2026, as of the date of this Rate Order). RMR will provide notification
of the effective date of the Provisional Formula Rates on its Rates and
Open Access Same-Time Information System websites. These Provisional
Formula Rates will remain in effect through March 31, 2031, pending
confirmation and approval by the Federal Energy Regulatory Commission
(FERC) on a final basis or until superseded. If RMR does not become a
member of SPP, these rates will be canceled and the existing formula
rates will remain in effect.
FOR FURTHER INFORMATION CONTACT: Barton V. Barnhart, Regional Manager,
Rocky Mountain Region, Western Area Power Administration, P.O. Box
3700, Loveland, CO 80538 or Sheila D. Cook, Rates Manager, Rocky
Mountain Region, Western Area Power Administration, (970) 685-9562 or
email: [email protected].
SUPPLEMENTARY INFORMATION: On September 16, 2024, FERC confirmed and
approved Rate Schedules L-NT1 (network), L-FPT1 (firm point-to-point),
L-NFPT1 (non-firm point-to-point), L-NFJDT (joint dispatch
transmission), L-UU1 (unreserved use), L-AS1 (scheduling and dispatch),
L-AS2 (reactive supply and voltage control support), L-AS3
(regulation), L-AS4 (energy imbalance), L-AS5 (spinning reserves), L-
AS6 (supplemental reserves), L-AS7 (BA real power losses), and L-AS9
(generator imbalance) under Rate Order No. WAPA-214 on a final basis
through September 30, 2026.\1\ Western Area Power Administration (WAPA)
published a Federal Register notice (Proposed FRN) on December 27, 2024
(89 FR 105564), proposing new formula rates for LAP transmission and
ancillary services in order for RMR to recover its costs under the SPP
Tariff should RMR decide to become a member of SPP. The Proposed FRN
also initiated a 90-day public consultation and comment period and set
forth the date of the virtual public information and public comment
forums. Consistent with RMR's current transmission and ancillary
services formula rates, RMR will continue to use a formula-based
methodology. RMR will annually update the data used in the rate formula
calculations in accordance with the Formula Rate Implementation
Protocols (Protocols).
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\1\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF24-6-000 (2024).
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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-S3-2024, effective August 30, 2024, 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 rate action is issued under
Redelegation Order No. S3-DEL-WAPA1-2023 and Department of Energy
procedures for public participation in rate adjustments 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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Following review of RMR's proposal, Rate Order No. WAPA-219, which
provides the formula rates for Annual Transmission Revenue Requirement
for Transmission Service, Incremental Market Efficiency Use Share, and
Scheduling, System Control, and Dispatch Service, is hereby confirmed,
approved, and placed into effect on an interim basis. WAPA will submit
Rate Order No. WAPA-219 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, Transmission
[[Page 30925]]
and Ancillary Services Formula Rates, Rate Order No. WAPA-219
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-219 are 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 section 5 of the Flood Control Act of 1944 (16 U.S.C.
825s); 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 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-S3-2024, effective August 30, 2024, 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 rate action is issued under
Redelegation Order No. S3-DEL-WAPA1-2023 and DOE 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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Acronyms, Terms, and Definitions
As used in this Rate Order, the following acronyms, terms, and
definitions apply:
Attachment H: Attachment H to Southwest Power Pool's (SPP) Open
Access Transmission Tariff (Tariff)--Annual Transmission Revenue
Requirement (ATRR) for Network Integration Transmission Service.
Attachment AI: Attachment AI to SPP's Tariff--Transmission
Definition.
Balancing Authority (BA): The responsible entity that integrates
resource plans ahead of time, maintains load-interchange-generation
balance within a designated area, and supports interconnection
frequency in real-time.
Balancing Authority Area (BAA): The collection of generation,
transmission, and loads within the metered boundaries of the Balancing
Authority and contained in one interconnection. The Balancing Authority
maintains load-resource balance within each of these areas. (SPP Tariff
at Part 1, Section 1, B Definitions.)
Customer Rate Brochure: A document prepared for public distribution
explaining the rationale and background for the information contained
in the Proposed Federal Register notice (FRN) and in this rate order.
Eastern Interconnection: A major alternating current power grid in
North America. The Eastern Interconnection reaches from Central Canada
eastward to the Atlantic coast (excluding Quebec), south to Florida,
and back west to the foot of the Rockies (excluding most of Texas). The
Eastern Interconnection is tied to the Western Interconnection with six
high-voltage direct current power transmission lines (DC Ties).
FRN: Federal Register notice--a document published in the Federal
Register in order for WAPA to provide information of public interest.
FY: WAPA's Fiscal Year; October 1 to September 30.
IMEU Share: Incremental Market Efficiency Use Share--The West DC
Tie Owners calculation of its Incremental MEU as demonstrated in
Addendum 3 to Attachment AE. (SPP Tariff Attachment AE, Section 2.21.)
Incremental MEU Charge: Incremental Market Efficiency Use Charge--A
market recovery mechanism to compensate West DC Tie Transmission Owners
for the expected loss of life of certain West DC Tie facilities due to
increased utilization of the West DC Ties by the Integrated
Marketplace. (SPP Tariff at Part I, Section 1, I Definitions.)
Integrated Marketplace: The Day-Ahead Market, the Real-Time
Balancing Market, the Transmission Congestion Rights Market, and the
Reliability Unit Commitment processes. (SPP Tariff Attachment AE at
Part 1.1, I Definitions.)
NEPA: National Environmental Policy Act of 1969, as amended.
OASIS: Open Access Same-Time Information System--As defined in
WAPA's Tariff, the information system and standards of conduct
contained in Part 37 of the Commission's regulations and all additional
requirements implemented by subsequent Commission orders dealing with
OASIS.
O&M: Operation and maintenance expenses.
Provisional Formula Rates: Formula rates that are confirmed,
approved, and placed into effect on an interim basis by the Secretary
or his/her designee.
Revenue Requirement: The revenue required to recover annual
expenses (such as O&M, administrative and general expenses, interest,
and depreciation).
Schedule 1: Schedule 1 of SPP's Tariff--Scheduling, System Control
and Dispatch Service.
Schedule 9: Schedule 9 of SPP's Tariff--Network Integration
Transmission Service.
Schedule 11: Schedule 11 of SPP's Tariff--Base Plan Zonal Charge
and Region-wide Charge.
Tariff: Open Access Transmission Tariff, including all schedules or
attachments thereto, as amended from time to time and approved by FERC.
Transmission Owner: Each Member of SPP that has executed an SPP
Membership Agreement as a Transmission Owner and therefore has the
obligation to construct, own, operate, and maintain transmission
facilities as directed by the Transmission Provider and: (i) whose
Tariff facilities (in whole or in part) make up the Transmission
System; or (ii) who has accepted a Notification to Construct but does
not yet own transmission facilities under SPP's functional control.
Those Transmission Owners that are not regulated by the Commission
shall not become subject to Commission regulation by virtue of their
status as Transmission Owners under this Tariff; provided, however,
that service over their facilities classified as transmission and
covered by the Tariff shall be subject to Commission regulation. (SPP
Tariff at Part I, Section 1, T Definitions.)
WAPA-RMR: United States Department of Energy, Western Area Power
Administration (WAPA), Rocky Mountain region. WAPA-RMR is the
definition for WAPA's Rocky Mountain region in the SPP Tariff and the
definition to be used in the rate schedules.
West DC Ties: A direct current interconnection between the Eastern
Interconnection and Western Interconnection for which the DC Tie Access
Charge and the Incremental MEU Charge may be applicable. In the
Integrated Marketplace, the West DC Ties will be Non-Biddable Locations
that will be used in the settlements in the TCR [Transmission
Congestion Rights] Markets. The West DC Ties are
[[Page 30926]]
Miles City, Stegall, and Sidney. (SPP Tariff at Part I, Section 1, W
Definitions.)
Western Interconnection: A major alternating current power grid in
North America. The Western Interconnection stretches from Western
Canada south to Baja California in Mexico, reaching eastward over the
Rockies to the Great Plains. Western Interconnection is comprised of
the states of Washington, Oregon, California, Idaho, Nevada, Utah,
Arizona, Colorado, Wyoming, portions of Montana, South Dakota,
Nebraska, New Mexico, and Texas in the United States, the Provinces of
British Columbia and Alberta in Canada, and a portion of the
Comisi[oacute]n Federal de Electricidad's system in Baja California in
Mexico. (SPP Tariff at Part I, Section 1, W Definitions.)
Zone: The geographic area of the facilities of a Transmission Owner
or a specific combination of Transmission Owners as specified in
Schedules 7, 8, and 9. (SPP Tariff at Part I, Section 1, XYZ
Definitions.)
Effective Date
The Provisional Formula Rate Schedules LAPT-ATRR, LAPT-DCTIE-IMEU,
and LAPT-AS1 will take effect on the first day of the first full
billing period beginning on the later of the following events: (1) when
the Rocky Mountain region (RMR) officially becomes a member of, and
transfers functional control of Loveland Area Projects (LAP)
transmission facilities to, SPP; or (2) the go-live date of the
expansion of the SPP Regional Transmission Organization (RTO) into the
Western Interconnection (scheduled for April 1, 2026, as of the date of
this Rate Order). RMR will provide notification of the effective date
of the Provisional Formula Rates on its Rates and OASIS websites. These
Provisional Formula Rates will remain in effect through March 31, 2031,
pending confirmation and approval by FERC on a final basis or until
superseded. If RMR does not become a member of SPP, these rates will be
canceled and the existing formula rates will remain in effect. If
canceled, RMR will inform customers by letter and by posting notice of
such on RMR's Rates website www.wapa.gov/about-wapa/regions/rm/rm-rates/2026-rate-adjustment-rto-trans-and-anc-svcs and on RMR's OASIS
website www.oasis.oati.com/LAPT/index.html.
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. RMR took the following steps to involve
interested parties in the rate process:
1. On December 27, 2024, a FRN (89 FR 105564) (Proposed FRN)
announced the proposed formula rates and initiated a 90-day public
consultation and comment period.
2. On January 2, 2025, RMR notified customers and interested
parties of the proposed rates and provided a copy of the published
Proposed FRN.
3. On February 19, 2025, RMR held a virtual public information
forum where 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 February 19, 2025, RMR held a virtual public comment forum to
provide an opportunity for customers and other interested parties to
comment for the record.
5. RMR posted information about the rate process on two public
websites. RMR's Rates website located at www.wapa.gov/about-wapa/regions/rm/rm-rates/2026-rate-adjustment-rto-trans-and-anc-svcs, and
RMR's OASIS website located at www.oasis.oati.com/LAPT/index.html.
6. During the 90-day consultation and comment period, which ended
on March 27, 2025, RMR received no oral comment submissions and no
written comment letters.
Transmission and Ancillary Services Rate Discussion
On April 28, 2023, WAPA published a FRN titled ``Recommendation for
the Western Area Power Administration's Rocky Mountain Region and
Colorado River Storage Project Management Center to Pursue Final
Negotiations Regarding Membership in the Southwest Power Pool Regional
Transmission Organization, and for the Upper Great Plains Region to
Expand its Participation'' (88 FR 26298). On June 4, 2024, SPP
submitted revisions to its Tariff, Bylaws, and Membership Agreement to
expand the SPP RTO into the Western Interconnection to FERC.\3\ On
March 20, 2025, FERC accepted, subject to condition and further
compliance filing, SPP's proposed Tariff, Bylaws, and Membership
Agreement revisions. Subject to further approval by the Administrator,
RMR plans to become a member of SPP.
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\3\ Southwest Power Pool, Inc., Submission of Revisions to
Tariff, Bylaws, and Membership Agreement to Expand the Regional
Transmission Organization into the Western Interconnections (Part 1
of 2) and (Part 2 of 2), Docket Nos. ER24-2184, ER24-2185 (June 4,
2024).
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RMR's membership will include RMR becoming a Transmission Owner
member of SPP and SPP assuming the BA responsibilities for RMR's
Western Area Colorado Missouri (WACM) BAA. WAPA will transfer
functional control of eligible LAP transmission facilities to SPP (LAP
has transmission facilities in both the Eastern and Western
Interconnections separated by the Sidney DC Tie). Subsequently, LAP
transmission and ancillary services and WACM BA ancillary services will
no longer be available under WAPA's Tariff, and RMR's BA contracts and
the existing transmission and ancillary services rate schedules,
specifically L-NT1, L-FPT1, L-NFPT1, L-NFJDT, L-UU1, L-AS1, L-AS2, L-
AS3, L-AS4, L-AS5, L-AS6, L-AS7, and L-AS9, will no longer be
applicable.
LAP transmission and ancillary services will be provided under the
SPP Tariff by SPP as the transmission service provider. Accordingly,
RMR has developed new formula rate designs/rate schedules for specific
costs to be recovered under the SPP Tariff. For each formula rate, the
appropriate data will be submitted to SPP in standard formula rate
templates in accordance with SPP's Tariff Attachment H. RMR will
identify any portion of its ATRR eligible for recovery under SPP's
Tariff Schedule 9 and Schedule 11 in these formula rate templates.
RMR's revenue requirements are added to the annual revenue requirements
of other transmission owners in the multi-owner SPP pricing Zone 104,
also identified as the Loveland Area Projects Zone (LAPZ), for
transmission service billed by SPP within the LAPZ. RMR's revenue
requirements under these rates also impact other costs for transmission
service within the broader SPP footprint.
For each formula rate, RMR will true up its estimated costs with
actual costs each year. If RMR collects more revenue than its actual
net revenue requirement or IMEU Share, RMR will return this revenue
through a credit against a revenue requirement or IMEU Share in a
subsequent year. Actual revenues that are less than the net revenue
requirement or IMEU Share would likewise be recovered in a subsequent
year. The true-up procedure will ensure that RMR will recover no more
and no less than the actual transmission costs for the year.
Data used in the annual recalculation of the formula rates each
year will be made available for review and comment as described in the
Formula Rate Implementation Protocols (Protocols). These Protocols
ensure that interested parties are aware of the data used to calculate
the formula rates and are provided the opportunity to comment
[[Page 30927]]
before the costs are collected through the formula rates.
The formula rate templates and the Protocols will be posted on the
applicable SPP website and on RMR's OASIS website.
Formula Rate for LAP Annual Transmission Revenue Requirement--Rate
Schedule LAPT-ATRR
RMR will use a formula-based rate methodology to calculate its
ATRR. The ATRR is derived by annualizing LAP transmission investments
that meet the Transmission Facility criteria as identified in
Attachment AI to SPP's Tariff and adding transmission-related annual
costs, which include interest, O&M, administrative and general
expenses, and depreciation. The annual costs will be reduced by
applicable revenue credits received by RMR under the SPP Tariff. RMR
will recover transmission-related expenses and investments on a
forward-looking basis by using projections to estimate transmission
costs for the upcoming rate year, with a true-up of incurred costs in a
subsequent year. RMR will true-up the cost estimates it used in the
calculation of its FY 2025 and FY 2026 transmission rates that were in
place prior to joining SPP when calculating these future true-ups.
RMR will provide its overall ATRR as separate subtotals to
distinguish LAP transmission facilities between Eastern
Interconnection, Western Interconnection, Sidney DC Tie, and other SPP
Zones. SPP will utilize these ATRR subtotals, along with zonal and
regional load and other applicable information, to calculate the
applicable charges and revenue distribution for SPP transmission
service under the SPP Tariff.
Formula Rate for Sidney DC Tie Incremental Market Efficiency Use
Share--Rate Schedule LAPT-DCTIE-IMEU
SPP's Incremental MEU Charge compensates each West DC Tie
Transmission Owner for the expected loss of life of that owner's West
DC Tie facility due to increased utilization of the West DC Ties by the
Integrated Marketplace.
To simplify the calculation of the Sidney DC Tie IMEU Share and
provide a consistent forward-looking amount, RMR will use a loss-of-
life factor for each eligible group of Sidney DC Tie equipment due to
expected market operation impacts, and provide a levelized annual
estimate to SPP. The loss-of-life calculations are based upon impact
metrics directly related to the increased market use for each of the
Sidney DC Tie equipment groups eligible for cost recovery. The IMEU
Share calculations are based upon the change in the estimated
depreciation expense due to the loss of life predicted for each group
of Sidney DC Tie equipment. Cost estimates are calculated on a forward-
looking basis by using projections to determine costs for the upcoming
rate year, with a true-up of incurred costs in a subsequent year.
Revenue received from SPP for RMR's Sidney DC Tie IMEU Share will be
credited against the Sidney DC Tie portion of the LAP ATRR previously
described.
Formula Rate for Scheduling, System Control, and Dispatch Service--Rate
Schedule LAPT-AS1
Scheduling, System Control, and Dispatch (SSCD) Service is required
to operate a Transmission Owner's SPP Tariff facilities and schedule
movement of power through, out of, within, or into one or both of the
SPP BAAs and certain parts of the transmission system not located
within a SPP BAA. These functions are conducted by the RMR Operations
staff on behalf of the LAP and Colorado River Storage Project (CRSP)
Transmission Owners. RMR will use a formula-based rate methodology to
calculate its annual revenue requirement (ARR) for SSCD Service. RMR's
overall ARR for SSCD Service is allocated between RMR and the CRSP
region. RMR's transmission portion of its allocation of the SSCD ARR
will be collected under Rate Schedule LAPT-AS1 and the CRSP region's
allocation of the SSCD ARR will be collected by the CRSP region under
their applicable rate(s). SPP will use RMR's transmission portion of
its allocation of the SSCD ARR to determine the regional SPP Schedule 1
rate and revenue distribution for SPP through-and-out transactions and
to determine the zonal SPP Schedule 1 rate and revenue distribution for
the appropriate Zones under the SPP Tariff.
RMR's overall SSCD Service ARR is derived by calculating RMR's
applicable annual costs associated with the provision of SSCD Service,
including O&M, administrative and general expenses, interest, and
depreciation. Estimates are calculated on a forward-looking basis by
using projections to determine costs associated with SSCD Service for
the upcoming rate year, with a true-up of incurred costs in a
subsequent year. RMR's portion of its allocation of the SSCD ARR will
be reduced by any applicable revenue received by RMR under the SPP
Tariff.
Formula Rate Implementation Protocols
For transmission and ancillary services provided under the SPP
Tariff, RMR will provide information relating to RMR's rate
implementation and annual update procedures and timelines in a
``Formula Rate Implementation Protocols'' document. The Protocols,
together with the above-mentioned formula rate templates, comprise the
Formula Rates that will be submitted to SPP to be incorporated in the
SPP Tariff. All relevant information pertaining to RMR's annual
updates, customer notifications and review periods, and meeting
requirements are contained in the Protocols. These notifications,
review periods, and meetings ensure that interested parties are aware
of the data used to calculate the formula rates and are provided the
opportunity to comment before the costs are collected through the
formula rates.
Certification of Rates
I have certified that the Provisional Formula Rates for Loveland
Area Projects transmission and ancillary service under Rate Schedules
LAPT-ATRR, LAPT-DCTIE-IMEU, and LAPT-AS1 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 used by RMR to develop the Provisional Formula Rates is
available for inspection and copying at the Rocky Mountain Regional
Office, 5555 East Crossroads Boulevard, Loveland, CO. Many of these
documents are also available on RMR's Rates website previously listed.
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 part
1021: B4.3 (Electric power marketing rate changes).\4\ 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 DOE's
website at www.energy.gov/nepa/categorical-exclusion-determinations-
[[Page 30928]]
western-area-power-administration-rocky-mountain-region.
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\4\ The determination was done in compliance with NEPA (42
U.S.C. 4321-4347) 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.
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-219. 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 and approved; or (3) such rates are
superseded.
Signing Authority
This document of the Department of Energy was signed on July 7,
2025, by Tracey A. LeBeau, Administrator, Western Area Power
Administration, pursuant to delegated authority from the Secretary of
Energy. That document, with the original signature and date, is
maintained by DOE. For administrative purposes only, and in compliance
with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on July 9, 2025.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
Rate Schedule LAPT-ATRR
United States Department of Energy
Western Area Power Administration
Rocky Mountain Region
Loveland Area Projects
Annual Transmission Revenue Requirement for Transmission Service
(Approved Under Rate Order No. WAPA-219)
Effective
The first day of the first full billing period beginning on the
later of the following events: (1) when the Western Area Power
Administration--Rocky Mountain region (WAPA-RMR) officially becomes a
member of, and transfers functional control of Loveland Area Projects
(LAP) transmission facilities to, the Southwest Power Pool (SPP); or
(2) the go-live date of the expansion of the SPP Regional Transmission
Organization (RTO) into the Western Interconnection (scheduled for
April 1, 2026, as of the date of the approved Rate Order) and extending
through March 31, 2031, or until superseded by another rate schedule,
whichever occurs earlier. Notification of the actual effective date
will be posted on WAPA-RMR's Rates website and on WAPA-RMR's Open
Access Same-Time Information System (OASIS) website.
Applicable
WAPA-RMR's formula based Annual Transmission Revenue Requirement
(ATRR) for its eligible transmission-related facilities included under
the SPP Open Access Transmission Tariff (Tariff) will be separated
between (1) LAP's Western Interconnection transmission facilities, (2)
LAP's Eastern Interconnection transmission facilities, (3) LAP's Sidney
Direct Current (DC) Tie facilities, and (4) LAP's transmission
facilities determined to be in other SPP RTO transmission pricing
zones. Each ATRR subtotal will be calculated using the formula outlined
below.
Formula Rate
Define:
A = Operation & Maintenance Expense allocated to transmission ($)
B = Administrative and General Expense allocated to transmission ($)
C = Depreciation Expense allocated to transmission ($)
D = Interest Expense allocated to transmission ($)
E = Applicable ratio share of plant for LAP's Western Interconnection
transmission facilities, Eastern Interconnection transmission
facilities, Sidney DC Tie facilities, and LAP transmission facilities
determined to be in other SPP RTO transmission pricing zones (%)
F = Revenue Credits--Scheduling, System Control, and Dispatch service
associated with each specific ATRR subtotal ($)
G = Revenue Credits associated with each specific ATRR subtotal ($)
H = Prior Period True-up associated with each specific ATRR subtotal
($)
ATRR Subtotals = ((A + B + C + D) * E)--F--G + H
Total ATRR = Sum of all ATRR Subtotals
Note: WAPA-RMR will identify any portion(s) of the ATRR eligible
for recovery under SPP Schedule 9 and Schedule 11 pursuant to the SPP
Tariff in its Rate Formula Template submitted under Attachment H of the
SPP Tariff.
A recalculated ATRR will go into effect every January 1 based on
the above formula and updated financial data. WAPA-RMR will annually
notify SPP and make data and information available to interested
parties for review and comment related to the recalculated ATRR on or
shortly after September 1 of the preceding year. This data and
information will be posted on the applicable SPP website and on WAPA-
RMR's OASIS website.
Rate Schedule LAPT-DCTIE-IMEU
United States Department of Energy
Western Area Power Administration
Rocky Mountain Region
Loveland Area Projects
Incremental Market Efficiency Use Share
(Approved Under Rate Order No. WAPA-219)
Effective
The first day of the first full billing period beginning on the
later of the following events: (1) when the Western Area Power
Administration--Rocky Mountain region (WAPA-RMR) officially becomes a
member of, and transfers functional control of Loveland Area Projects
(LAP) transmission facilities to, the Southwest Power Pool (SPP); or
(2) the go-live date of the expansion of the SPP Regional Transmission
Organization into the Western Interconnection (scheduled for April 1,
2026, as of the date of the approved Rate Order) and extending
[[Page 30929]]
through March 31, 2031, or until superseded by another rate schedule,
whichever occurs earlier. Notification of the actual effective date
will be posted on WAPA-RMR's Rates website and on WAPA-RMR's Open
Access Same-Time Information System (OASIS) website.
Applicable
The Incremental Market Efficiency Use (IMEU) accounts for each
Western Interconnection Direct Current (West DC) Tie Transmission
Owner's expected loss of life of that owner's West DC Tie facilities
due to increased utilization of the West DC Ties by the SPP Integrated
Marketplace. WAPA-RMR's IMEU Share for the Sidney DC Tie will be
calculated using the formula outlined below.
Formula Rate
Define (for each Group of IMEU eligible Sidney DC Tie equipment):
A = Sidney DC Tie Gross Plant Impacted by IMEU ($)
B = Average Service Life of Gross Plant Impacted by IMEU
C = Average Service Life Depreciation Rate of Gross Plant Impacted by
IMEU (%)
D = Loss of Service Life Due to Market Use (%)
E = Decreased Average Service Life Depreciation Rate of Gross Plant
Impacted by IMEU (%)
IMEU Share for each Group = (E-C)*A, where 1/B=C, and where 1/(B*(1-
D))=E
F = Prior period true-up ($)
Total IMEU Share = Sum of IMEU Share for all Groups + F
A recalculated IMEU Share will go into effect every January 1 based
on the above formula and updated financial/criteria data. WAPA-RMR will
annually notify SPP and make data and information available to
interested parties for review and comment related to the recalculated
IMEU Share on or shortly after September 1 of the preceding year. This
data and information will be posted on the applicable SPP website and
on WAPA-RMR's OASIS website.
Rate Schedule LAPT-AS1
United States Department of Energy
Western Area Power Administration
Rocky Mountain Region
Loveland Area Projects
Scheduling, System Control, and Dispatch Service
(Approved Under Rate Order No. WAPA-219)
Effective
The first day of the first full billing period beginning on the
later of the following events: (1) when the Western Area Power
Administration--Rocky Mountain region (WAPA-RMR) officially becomes a
member of, and transfers functional control of Loveland Area Projects
(LAP) transmission facilities to, the Southwest Power Pool (SPP); or
(2) the go-live date of the expansion of the SPP Regional Transmission
Organization (RTO) into the Western Interconnection (scheduled for
April 1, 2026, as of the date of the approved Rate Order) and extending
through March 31, 2031, or until superseded by another rate schedule,
whichever occurs earlier. Notification of the actual effective date
will be posted on WAPA-RMR's Rates website and on WAPA-RMR's Open
Access Same-Time Information System (OASIS) website.
Applicable
Scheduling, System Control, and Dispatch Service (SSCD) is required
to schedule the movement of power through, out of, within, or into one
or both of the SPP Balancing Authority Areas (BAA) and certain parts of
the transmission system not located within an SPP BAA. WAPA-RMR's
annual revenue requirement (ARR) for SSCD will be separated between
service provided for LAP transmission facilities in the LAP Zone (LAPZ
or Zone 104) and for LAP transmission facilities determined to be in
other SPP RTO transmission pricing zones. The ARR and ARR subtotals
will be calculated using the formula outlined below.
Formula Rate
Define
A = Operation & Maintenance Expense for SSCD ($)
B = Administrative and General Expense for SSCD ($)
C = Depreciation Expense for SSCD ($)
D = Interest Expense for SSCD ($)
E = Prior Period True-up ($)
F = Applicable ratio share of plant for LAPZ and for other SPP RTO
transmission pricing zones (%)
SSCD ARR = (A + B + C + D + E)
ARR Subtotals = (SSCD ARR) * F
A recalculated ARR will go into effect every January 1 based on the
above formula and updated financial data. WAPA-RMR will annually notify
SPP and make data and information available to interested parties for
review and comment related to the recalculated ARR on or shortly after
September 1 of the preceding year. This data and information will be
posted on the applicable SPP website and on WAPA-RMR's OASIS website.
[FR Doc. 2025-12992 Filed 7-10-25; 8:45 am]
BILLING CODE 6450-01-P