Vol. 76 Wednesday, No. 178 September 14, 2011
Part III
Department of Energy
Western Area Power Administration The Central Valley Project, the California-Oregon Transmission Project, the Pacific Alternating Current Intertie, and Information on the Path 15 Transmission Upgrade—Rate Order No. WAPA–156; Notice
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56906 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
DEPARTMENT OF ENERGY Folsom, CA 95630–4710, (916) 353– CAISO market price or Western’s actual 4629, e-mail [email protected]. cost; Western Area Power Administration SUPPLEMENTARY INFORMATION: This 6. Western added Components 2 and Federal Register notice (FRN) replaces 3, standard cost recovery language, to The Central Valley Project, the the existing formula rates for power, CPP formula rate; and California-Oregon Transmission transmission, and ancillary services 7. Rate Schedules include Project, the Pacific Alternating Current under Rate Order No. 115, noticed on miscellaneous language changes and Intertie, and Information on the Path 15 November 22, 2004,1 as amended under billing clarifications. Transmission Upgrade—Rate Order Rate Order No. 128, noticed on July 26, Detailed explanations of changes to No. WAPA–156 2006,2 and as extended by Rate Order the provisional formula rate methodologies are described in the rate AGENCY: Western Area Power No. 139, noticed on August 12, 2008.3 order below. Administration, DOE. These rate schedules (CV–F12, CPP–1, ACTION: Notice of Rate Order. CV–T2, CV–NWT4, COTP–T2, PACI– Provisional Power Rates T2, CV–TPT6, CV–SPR3, CV–SUR3, Under the provisional formula rates, SUMMARY: The Deputy Secretary of CV–RFS3, and CV–EID3) expire on prior to the start of each fiscal year (FY), Energy confirmed and approved Rate September 30, 2011. The Deputy Western calculates and publishes an Order No. WAPA–156 and Rate Secretary of Energy, under Delegation annual Power Revenue Requirement Schedules CV–F13, CPP–2, CV–T3, CV– Order No. 00–037.00 and 00–001.00c, (PRR) to determine the total cost of NWT5, COTP–T3, PACI–T3, CV–TPT7, 10 CFR 903 and 18 CFR part 300, power to be allocated to Preference CV–UUP1, CV–SPR4, CV–SUR4, CV– confirms, approves, and places into Customers. As part of the rate RFS4, CV–EID4, and CV–GID1, placing effect on October 1, 2011, on an interim development, Western prepares a Power formula rates for power, transmission, basis, Rate Order WAPA–156, which Repayment Study (PRS) each FY to and ancillary services for the Central includes rate schedules CV–F13, CPP–2, determine if the expected revenue will Valley Project (CVP), transmission CV–T3, CV–NWT5, COTP–T3, PACI– be sufficient to repay, within the service on the California-Oregon T3, CV–TPT7, CV–UUP1, CV–SPR4, required time periods, all costs assigned Transmission Project (COTP), CV–SUR4, CV–RFS4, CV–EID4, and to the commercial power function. transmission service on the Pacific CV–GID1. The provisional formula rates Repayment criteria are based on Alternating Current Intertie (PACI), and shall be in effect until FERC confirms, legislation and applicable policies, third-party transmission service into approves, and places them into effect on including DOE Order RA 6120.2. effect on an interim basis. The Rate a final basis through September 30, Generally, the PRR includes estimated Order also provides information on the 2016, or until they are superseded. operation and maintenance (O&M) Western Area Power Administration’s expenses, purchase power for Project (Western) transmission capacity Changes From Existing Rates Use (PU) and FP Customers’ loads, entitlement on the Path 15 Transmission After considering all comments interest, and other expenses (including Upgrade. The provisional formula rates submitted during the public any other statutorily-required costs or will be in effect until the Federal Energy consultation and comment period, charges), investment repayment, and the Regulatory Commission (FERC) Western determined that the provisional Washoe Project annual costs that remain confirms, approves, and places them rates should continue the existing after project use loads are met. Revenues into effect on a final basis or until formula rate methodologies for power; from PU, transmission, ancillary superseded. The provisional formula CVP, COTP, and PACI transmission; services, and other services are offset rates will provide sufficient revenue to transmission of Western power by against expenses in the PRR. The pay all annual costs, including interest others; Custom Product Power (CPP); remainder is collected from Base expense, repayment of power and ancillary services with the Resource (BR) and FP Customers. The investments and aid to irrigation, within following summarized exceptions: PRR is reviewed during March of each the allowable periods. 1. Two new rate schedules: Unreserved Use Penalties (UUP) and year; and if the review results in a DATES: Rate Schedules CV–F13, CPP–2, change of $5 million or more, the PRR CV–T3, CV–NWT5, COTP–T3, PACI– Generator Imbalance (GI); 2. Annual true-up for First Preference is adjusted. The PRR is an estimate of T3, CV–TPT7, CV–UUP1, CV–SPR4, revenue and costs including investment CV–SUR4, CV–RFS4, CV–EID4, and (FP) percentages; 3. In addition to the existing 150 and repayment projections from the CV–GID1 will be placed into effect on percent penalty on the California PRS. Any deviation from estimate to an interim basis on the first day of the Independent System Operator’s (CAISO) actual will increase or decrease capital first full billing period beginning market price, Western will adopt a 150 project repayment. Project repayment is October 1, 2011, and will remain in percent penalty on Western’s actual cost analyzed and measured over the long effect until FERC confirms, approves, when charging for ancillary services and term to ensure repayment is met and to and places the rate schedules into effect will charge the greater of the two; maintain rate stability. on a final basis for a 5-year period 4. Costs incurred under Energy The PRR is allocated first to FP ending September 30, 2016, or until the Imbalance (EI)/GI when disposing of Customers then to BR Customers. The rate schedules are superseded. surplus energy, including negative FP Customers are defined in the Trinity FOR FURTHER INFORMATION CONTACT: pricing of such energy, will be charged River Division Act of 1955 4 and the Mr. Thomas R. Boyko, Regional to the responsible party; Flood Control Act of 1962.5 Western Manager, Sierra Nevada Customer 5. For intermittent resources provides first preference of CVP power Service Region, Western Area Power interconnected to Western’s system, to customers in Trinity, Tuolumne, and Administration, 114 Parkshore Drive, Western will not charge the 150 percent Calaveras Counties, as provided under Folsom, CA 95630–4710, (916) 353– penalty and will charge the greater of those acts and as implemented under 4418, or Ms. Regina Rieger, Rates Western’s 2004 Marketing Plan. A BR Manager, Sierra Nevada Customer 1 See 69 FR 70510 (2004). Service Region, Western Area Power 2 See 71 FR 45821 (2006). 4 See 69 Stat. 719 (1955). Administration, 114 Parkshore Drive, 3 See 73 FR 48381 (2008). 5 See 76 Stat. 1173, 1191–1192 (1962).
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56907
Customer, under the 2004 Marketing for EI service, customers operating (10 CFR part 903) were published on Plan, is an entity that has executed a BR outside of their contractual bandwidth September 18, 1985. contract and is allocated a percentage of (under-delivery) will pay the greater of Under Delegation Order Nos. 00– the BR. The FP percentages are 150 percent of Western’s actual cost or 037.00 and 00–001.00C, 10 CFR part reviewed during March of each year; 150 percent of the market price. Given 903, and 18 CFR part 300, I hereby and if the review results in a change of that Western’s EI Customers are and will confirm, approve, and place into effect one-half of 1 percent for any FP continue to operate under existing on October 1, 2011, on an interim basis, Customer, the PRR obligation is agreements, Western will continue its Rate Order No. WAPA–156, which reallocated to both FP and BR existing rate methodology for EI. During includes Rate Schedules CV–F13, CPP– Customers. Based on customer or after the applicable rate period, 2, CV–T3, CV–NWT5, COTP–T3, PACI– comments received during this rate Western will review FERC Order No. T3, CV–TPT7, CV–UUP1, CV–SPR4, process, Western agreed to perform an 890, as well as Western’s existing CV–SUR4, CV–RFS4, CV–EID4, and annual true-up of FP percentages and settlements and billing processes, and CV–GID1, for the CVP, COTP, and PACI adjust FP and BR revenue requirements will reconsider transitioning to FERC’s of Western. By this Order, I am placing each October. methodology. the rates into effect in less than 30 days In order for Western to meet the loads Finally, in response to FERC’s Order to meet contract deadlines, to avoid of Full Load Service (FLS) Customers or No. 890, Western added two new rate financial difficulties and to provide a any portion of the loads of Variable schedules to be effective during the new rate for a new service. The provisional Resource (VR) Customers not met by BR, rate period: UUP and GI. The UUP will rates shall be in effect until FERC Western may make supplemental power be assessed at 200 percent of the confirms, approves, and places the rates purchases pursuant to the CPP rate effective PTP transmission rate when in effect on a final basis through schedule. The FLS and VR Customers transmission service is used and not September 30, 2016, or until the rates who contract with Western for such reserved or when used in excess of are superseded. service pay all supplemental power reservation. The GI rate will use the Dated: September 2, 2011. costs. The FLS Customers pay a same methodology as Western’s EI Daniel B. Poneman, portfolio management charge pursuant service rate. Currently, Western has no Deputy Secretary. to their FLS contract, whereas VR customers subject to this provisional GI Customers pay a scheduling charge for DEPARTMENT OF ENERGY rate. any CPP pursuant to the provisional rate Deputy Secretary schedule. Information on Path 15 Transmission Upgrade Rate Order No. WAPA–156 Provisional Transmission and Ancillary Service Rates The Path 15 Transmission Upgrade In the matter of: Western Area Power Administration Rate Adjustment for the At least annually, Western will was completed in 2005. Western turned Central Valley Project, the California- publish the CVP transmission rates for over the operational control of Oregon Transmission Project, and the point-to-point (PTP) and network Western’s Path 15 Transmission integration transmission service (NITS), Upgrade to the CAISO. Western Pacific Alternating Current Intertie the seasonal COTP and PACI maintains the transmission line and is These power, transmission, and transmission rates, and CVP regulation compensated by Atlantic Path 15, LLC ancillary services formula rates are and frequency response service rates. for maintenance costs. The CAISO established in accordance with section Rates are based on a cost-of-service charges for use of the Path 15 302 of the Department of Energy (DOE) (COS) study to determine the costs, by Transmission Upgrade in accordance Organization Act (42 U.S.C. 7152). This project, that support the transfer with the CAISO tariff. Western does not Act transferred to and vested in the capability of each transmission system sell transmission capacity on Path 15 Secretary of Energy the power marketing and the costs that support the Transmission Upgrade. Western collects functions of the Secretary of the generation capability of the CVP system. revenues from the CAISO under its Department of the Interior (DOI) and the Generally, the costs allocated through agreements with the CAISO. Under Bureau of Reclamation (Reclamation) the COS study for the transmission Amendment No. 48, the CAISO remits under the Reclamation Act of 1902 (ch. systems include O&M, interest, and to Western, wheeling, congestion, and 1093, 32 Stat. 388), as amended and depreciation expenses. Western’s costs Congestion Revenue Rights revenues supplemented by subsequent laws, for scheduling, system control and associated with Western’s rights on the particularly section 9(c) of the dispatch service associated with CVP, Path 15 Transmission Upgrade. Reclamation Project Act of 1939, COTP, and PACI transmission service Confirmation, Approval, and Placing (43 U.S.C. 485h(c)), and other acts that are included and recovered through the Rate Order WAPA–156 in Place specifically apply to the project respective transmission system’s involved. revenue requirements (RR). Third-party By Delegation Order No. 00–037.00, By Delegation Order No. 00–037.00, transmission service costs are passed effective December 6, 2001, the effective December 6, 2001, the through directly to each customer. Secretary of Energy delegated: (1) The Secretary of Energy delegated: (1) The Spinning and supplemental reserve authority to develop power and authority to develop power and services are priced consistent with the transmission rates to Western’s transmission rates to the Administrator CAISO market price plus all costs Administrator; (2) the authority to of Western Area Power Administration incurred for the sale of these reserves. confirm, approve, and place such rates (Western); (2) the authority to confirm, Customers who have a contractual into effect on an interim basis to the approve, and place such rates into effect obligation to self-provide spinning and Deputy Secretary of Energy; and (3) the on an interim basis to the Deputy supplemental reserves, and do not fulfill authority to confirm, approve, and place Secretary of Energy; and (3) the their obligation, will be assessed a into effect on a final basis, to remand or authority to confirm, approve, and place penalty equal to the greater of 150 to disapprove such rates to FERC. into effect on a final basis, to remand or percent of Western’s actual cost or 150 Existing DOE procedures for public to disapprove such rates to Federal percent of the market price. Similarly, participation in power rate adjustments Energy Regulatory Commission (FERC).
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56908 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
Existing DOE procedures for public regulated, state-chartered, non-profit Customer: An entity with a contract that participation in power rate adjustments corporation, independent system receives service from the Western’s (10 CFR 903) were published on operator and BA area of most of SNR. September 18, 1985. California’s transmission grid. DOE: United States Department of Energy. Acronyms and Definitions California-Oregon Intertie (COI): Consists of three 500-kilovolt (kV) DOE Order RA 6120.2: A DOE order As used in this Rate Order, the lines linking California and Oregon, outlining power marketing following acronyms and definitions the California Oregon Transmission administration financial reporting and apply: Project, and the Pacific Alternating ratemaking procedures. 2004 Power Marketing Plan: The 2004 Current Intertie (PACI) (two lines). EI: Energy Imbalance. Central Valley Project (CVP) Power The Western Electricity Coordinating Federal Energy Regulatory Commission Marketing Plan effective January 1, Council (WECC) establishes the (FERC): Referred to as the FERC. 2005.6 The final marketing program seasonal transfer capability for the FERC is an independent agency that for the Sierra Nevada Region (SNR) COI. regulates the interstate transmission power after 2004 established through California-Oregon Transmission Project of electricity. First Preference (FP): Refers to an entity a public process and published in the (COTP): A 500-kV transmission qualified to use Preference Power Federal Register at 64 FR 34417. project stretching from Captain Jack Administrator: Administrator for the within a county of origin (Trinity, Substation to Tesla Substation in Western Area Power Administration Calaveras, and Tuolumne) as which Western has part ownership. (Western) specified under the Trinity River Ancillary Services: Those services Capacity: The electric capability of a Division Act of August 12, 1955 (69 necessary to support the transfer of generator, transformer, transmission Stat. 719) and the Flood Control Act electricity while maintaining reliable circuit, or other equipment expressed of 1962 (76 Stat. 1173, 1191–1192). operation of the transmission in kilowatt (kW). Fiscal Year (FY): Refers to the Federal provider’s transmission system in Central Valley Project (CVP): A Fiscal Year, October 1 through accordance with standard utility multipurpose Federal water September 30. practice. Ancillary services are development project extending from Full Load Service (FLS): The BR generally described in Federal Energy the Cascade Range in northern customer that will have its entire load Regulatory Commission (FERC) California to the plains along the Kern at the delivery point(s) met with Orders 888 and 890, including: River south of the city of Bakersfield, Western power and Third-Party spinning reserve, supplemental California. Power, and whose Portfolio reserve, regulation, Energy Imbalance CFR: Code of Federal Regulations. Management functions for said (EI), and Generator Imbalance (GI). COI Rating Seasons: Consists of delivery will be performed by Balancing Authority (BA): The summer, June through October; Western. responsible entity that integrates winter, November through March; and GI: Generator Imbalance. resource plans ahead of time, spring, April through May. HE: Hourly Exchange. maintains load-interchange- Component 1: A part of a formula rate. Host Balancing Authority (HBA): generation balance within a BA area, Component 1 is the variable portion Confirms and implements and supports interconnection of Western’s rate schedules. transactions that operate generation or frequency in real-time. Component 1 is the methodology used serves customers directly within the Balancing Authority of Northern to determine revenue requirements or BA’s metered boundaries. The BA California (BANC): A joint power rates that recover the costs for a within whose metered boundaries a agency composed of Sacramento specific service or product. jointly-owned unit is physically Municipal Utility District (SMUD), Component 2: A part of a formula rate. located. Western operates as a Sub- Redding Electric Utility, Roseville Component 2 is a pass-through Balancing Authority (SBA) under the Electric, and Modesto Irrigation provision of Western’s rate schedules. BANC which operates the HBA. District. The BANC is a legal The language is the same in each rate Kilovolt (kV): The electrical unit of structure, and it contracts SMUD to schedule. measure of electric potential that act as the BA operator for the BANC Component 3: A part of a formula rate. equals 1,000 volts. Kilowatt (kW): The electrical unit of as of May 1, 2011. Component 3 is a pass-through Base Resource (BR): The Central Valley capacity that equals 1,000 watts. provision of Western’s rate schedules. and Washoe Project power output and Kilowatthour (kWh): The electrical unit The language is the same in each rate existing power purchase contracts of energy that equals 1,000 watts schedule. extending beyond 2004 as determined produced or delivered in 1 hour. by Western to be available for Contract 2948A: Contract No. 14–06– Kilowattmonth (kWmonth): The marketing after meeting the 200–2948A was the Integration electrical unit equal to one kW requirements of Project Use (PU) and Contract between PG&E and the produced or delivered for 1 month. First Preference (FP) Customers, and United States of America, which Load: The amount of electric power or any adjustments for maintenance, expired on December 31, 2004. The energy delivered or required at any reserves, transformation losses, and contract provided for integrating specified point(s) on a transmission or certain ancillary services. The BR, as Western’s resources with Pacific Gas distribution system. defined above, will include CVP and and Electric’s (PG&E) and required Megawatt (MW): The electrical unit of Washoe Project generation supported PG&E to serve the combined PG&E/ capacity that equals one million watts by certain power purchases. Western load with the integrated or 1,000 kW. BR%: Base Resource Percentage. resource. Megawatt hour (MWh): The electrical California Independent System COS: Cost of Service. unit of energy that equals 1,000,000 Operator (CAISO): The FERC- Custom Product Power (CPP): Refers to watts produced or delivered for 1 power purchased by Western to meet hour. 6 See 64 FR 34417 (1999). a customer’s load. MRR: Monthly Revenue Requirement.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00004 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56909
NERC: The North American Electric Reclamation Law: A series of Federal 1. The rate adjustment process began Reliability Corporation’s (NERC) is laws. Viewed as a whole, these laws June 10, 2008, when Western mailed a the electric reliability organization create the originating framework notice announcing an informal meeting certified by FERC to establish and under which Western markets power. to all Sierra Nevada Region (SNR) enforce reliability standards for the Regulation and Frequency Response: Preference Customers and interested bulk-power system. The ancillary service under which a parties. NEPA: National Environmental Policy BA maintains moment-by-moment 2. Western held 14 public informal Act. load interchange-generation balance rate meetings beginning June 2008 Network Integration Transmission with the BA area and supports through April 2010, in Folsom, Service (NITS): Firm transmission interconnection frequency. California, to discuss the formula rate service for the delivery of capacity RR: Revenue Requirement. methodologies, components, and and energy from designated network SMUD: Sacramento Municipal Utility rationale for formula rates, to discuss resources to designated network loads District. possible formula rate changes, and to not using one specific path. SNR: Sierra Nevada Customer Service answer questions and seek customer Open Access Same Time Information Region. input or proposed changes. Meeting System (OASIS): The information Sub-Balancing Authority (SBA): agendas, notes, and handouts are posted system and standards of conduct Western’s contract-based BA within on Western’s Web site: http:// contained in Part 37 of FERC’s the SMUD’s BA, now BANC. www.wapa.gov/sn/marketing/rates/ regulations that Western utilized in Supplemental Power: The firm capacity ratesProcess/informalProcess/index.asp. developing its electronic posting and energy, provided by Western, that 3. A Federal Register notice (FRN) system for transmission access data. a customer(s) needs in addition to its published on January 3, 2011,7 which Open Access Transmission Tariff BR for use in meeting its load. announced the proposed rates for Transmission: The movement or transfer (OATT): Western’s open access Central Valley Project (CVP), California- of electric energy between points of transmission tariff accepted by the Oregon Transmission Project (COTP), supply and points at which it is FERC, as it may be amended and and Pacific Alternating Current Intertie transformed for delivery to customers supplemented. (PACI), began the public consultation or is delivered to other electric O&M: Operations and Maintenance. and comment period and set forth the Pacific Alternating Current Intertie systems. dates and location of public information Transmission Service Provider (TSP): (PACI): A 500-kV transmission project and public comment forums. The entity that administers the of which Western owns a portion of 4. On January 5, 2011, Western sent transmission tariff and provides the facilities. an e-mail notification to all SNR transmission service to transmission PG&E: Pacific Gas and Electric Preference Customers and interested customers under applicable Company. parties transmitting the FRN and transmission service agreements. Power: Capacity and energy, and it is reiterating the dates and locations of the TRR: Transmission Revenue measured in watts and often Requirement. public information and comment expressed in kW or MW. UUP: Unreserved Use Penalties. forums. Power Repayment Study (PRS): The PRS VR: Variable Resource. 5. On January 14, 2011, Western sent is used to calculate how much Western: Western Area Power an e-mail notification to all SNR revenue is needed to meet annual Administration. Preference Customers and interested investment obligations, O&M Washoe Project: A Reclamation project parties that the 2012 Rates Brochure for expenses, and repayment located in the Lahontan Basin in west- Proposed Rates was available upon requirements (including repayment central Nevada and east-central request and posted on Western’s Web periods). California. site at http://www.wapa.gov/sn/ Preference: Refers to the provisions of WECC: The Western Electricity marketing/rates/. Reclamation Law that requires Coordinating Council (WECC) is the 6. On January 14, 2011, Western sent Western to first make Federal power regional entity responsible for an e-mail notification to all SNR available to certain entities. For coordinating and promoting bulk Preference Customers and interested example, section 9(c) of the electric system reliability in the parties reminding them of the January Reclamation Project Act of 1939 states Western Interconnection. 25, 2011, Public Information Forum that preference in the sale of Federal (PIF). power shall be given to municipalities Effective Date 7. On January 25, 2011, Western held and other public corporations or The provisional formula rates will a PIF at the Lake Natoma Inn in Folsom, agencies and also to cooperatives and take effect on the first day of the first California. Western provided other non-profit organizations full billing period beginning on or after explanations of the proposed rates for financed in whole or in part by loans October 1, 2011, and will remain in CVP, COTP, PACI, and Path 15 made under the Rural Electrification effect through September 30, 2016, information, responded to questions, Act of 1936 (43 U.S.C. 485h(c)). pending approval by the Federal Energy and explained the differences between Project Use (PU): Power designated by Regulatory Commission (FERC) on a the existing and the proposed rates. Reclamation Law to be used to final basis. Western provided rate brochures and operate CVP and Washoe Project informational handouts. Public Notice and Comment facilities. 8. On February 8, 2011, Western sent Provisional Rate: A rate which has been Western Area Power Administration an e-mail notification to all SNR confirmed, approved, and placed into (Western) has followed the Procedures Preference Customers and interested effect on an interim basis by the for Public Participation in Power and parties announcing the location of Deputy Secretary. Transmission Rate Adjustments and Western’s Web site to view all PRR: Power Revenue Requirement. Extensions, 10 CFR 903, in developing comments received during the comment PTP: Point-to-Point. these formula rates and schedules. The period. That Web site also contained Reclamation: The U.S. Department of steps Western took to involve interested the Interior, Bureau of Reclamation. parties in the rate process were: 7 See 76 FR 127 (2011).
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00005 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56910 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
information on how to obtain a copy of James Irrigation District, Lower Tule and the Delta Cross Channel.11 Power the PIF transcript. River Irrigation District, Provident/ plants at Shasta and Keswick Dams 9. On February 23, 2011, Western sent Princeton Irrigation District, were also included in the authorization, an e-mail notification to all SNR Reclamation District 108, Santa Clara along with high-voltage transmission Preference Customers and interested Valley Water District, Sonoma County lines designed to transmit power from parties reminding them of the March 1, Water Agency, West Side Irrigation Shasta and Keswick Power Plants to the 2011, Public Comment Forum (PCF). District, West Stanislaus Irrigation Tracy pumps and to integrate the 10. On March 1, 2011, Western held District, and the Westlands Water Federal hydropower into other electric a PCF to give Preference Customers and District), California; Redding Electric systems.12 Through various acts, interested parties an opportunity to Utility, California; Roseville Electric, Congress authorized the construction comment for the record. Three California: Sacramento Municipal and integration of numerous other individuals commented at this forum. Utility District, California; Trinity facilities into the CVP. For instance, in 11. On March 23, 2011, Western sent Public Utility District, California; 1944, Congress authorized the American e-mail notification to all SNR Preference Tuolumne Public Power Agency, River Division (Division) to be Customers and interested parties that California. constructed by the United States Army the PCF transcript was received and a Corps of Engineers (Corps).13 In 1949, Summary of Comments from the PCF Representatives of the following the Division was reauthorized for was posted on Western’s Web site. In organizations made oral comments: integration into the CVP.14 The Division addition to comments received at Calpine Corporation, California. included Folsom Dam and Power Plant, Western’s PCF, Western received 17 Northern California Power Agency Nimbus Dam and Power Plant, and the comment letters during the consultation (representing the Bay Area Rapid Sly Park Unit, all located on the and comment period, which ended on Transit District, Truckee-Donner Public American River.15 In 1955, Congress April 4, 2011. All comments received Utility District, the Plumas-Sierra Rural authorized the Trinity River Division prior to the close of the consultation and Electric Cooperative, the Port of (Trinity Division) to include Trinity comment period have been considered Oakland, and the cities of Alameda, Dam and Power Plant, Lewiston Dam in preparing this Rate Order. All written Biggs, Fallon, Gridley, Healdsburg, Lodi, and Power Plant, and the Lewiston Fish comments received are posted on Lompoc, Palo Alto, Redding, Roseville, Facilities, all located on the Trinity Western’s Web site: http:// and Ukiah), California River.16 The Trinity Division also www.wapa.gov/sn/marketing/rates/ Redding Electric Utility, California. includes Judge Francis Carr Power ratesProcess/formalProcess/CIL2011/ Plant, Whiskeytown Dam, and the index.asp. Project Description Spring Creek Power Plant. In 1960, 12. On April 12, 2011, Western sent A. History and Description of the CVP, Congress authorized the San Luis Unit, an e-mail notification to all SNR PACI, and COTP including the B.F. Sisk San Luis Dam Preference Customers and interested and San Luis Reservoir, San Luis Canal, The CVP is located within the Central parties announcing the end of the public Coalinga Canal, O’Neill and Dos Amigos Valley and Trinity River basins of consultation and comment period. Pumping Plants, and William R. California. The CVP includes 18 Gianelli Pump-Generator.17 In 1965, Comments constructed dams and reservoirs with a Congress authorized construction of the Written comments were received from total storage capacity of 13 million acre Auburn-Folsom South Unit (Unit) as an the following organizations: Alameda feet. The system includes 615 miles of addition to the CVP.18 This Unit Municipal Power, California; Bay Area canals, five pumping facilities, and ten included four sub-units, three of which Rapid Transit, California; Calaveras power plants with a maximum have been constructed: Foresthill, Public Power Agency, California; operating capability of about 2,113 Folsom-Malby, and Folsom South Canal Calpine Corporation, California; City of megawatts (MW), approximately 865 sub-units. Congress has not authorized Biggs, California; City of Lodi, circuit-miles of high-voltage funding to complete the construction of California; City of Palo Alto, California; transmission lines, 22 substations, and the Auburn Dam, which is part of the City of Santa Clara (dba Silicon Valley 19 communication sites. The Bureau of fourth sub-unit. Congress authorized the Power), California; Eastside Power Reclamation (Reclamation) operates the San Felipe Division in 1967.19 Authority, California; Northern water control and delivery system and Three Corps projects—Buchanan, California Power Agency (representing all of the power plants with the Hidden, and New Melones—were the Bay Area Rapid Transit District, exception of the San Luis Pump- authorized for integration into the CVP Truckee-Donner Public Utility District, Generator (also known as W.R. Gianelli), in 1962.20 The Black Butte Integration the Plumas-Sierra Rural Electric which is operated by the State of Act added Black Butte, another Corps Cooperative, the Port of Oakland, and California for Reclamation. project completed in the 1960’s, to the the cities of Alameda, Biggs, Fallon, The Emergency Relief Appropriations CVP in 1970. Gridley, Healdsburg, Lodi, Lompoc, Act of 1935 initially authorized the In 1964, Congress authorized 9 Palo Alto, Redding, Roseville, and CVP. Congress reauthorized the CVP in construction of the 500-kilovolt (kV) 10 Ukiah), California; Plumas-Sierra Rural 1937 in the Rivers and Harbors Act. Electric Cooperative, California; Power As part of the CVP, Congress authorized 11 See Plans set forth in Rivers and Harbors and Water Resources Pooling Authority Reclamation to construct the Shasta Committee Document Numbered 35, 75th Cong., as adopted in 49 Stat. 1028, 1038 (1935). (representing the Arvin-Edison Water Dam on the Sacramento River and Friant Dam on the San Joaquin River. 12 See Id. Storage District, Banta-Carbona 13 Between the two dams are the Tracy See 58 Stat. 887, 901 (1944). Irrigation District, Byron-Bethany 14 See 63 Stat. 852 (1949). Irrigation District,8 Cawelo Water Pumping Plant and the Delta-Mendota 15 See Id. District, Glenn-Colusa Irrigation District, Canal, the Contra Costa Canal, the 16 See 69 Stat. 719 (1955). Friant-Kern Canal, the Madera Canal, 17 See 74 Stat. 156 (1960). 8 Byron Bethany Irrigation District withdrew from 18 See 79 Stat. 615 (1965). the Power and Water Resources Pooling Authority 9 See 49 Stat. 115 (1935). 19 See 81 Stat. 173 (1967). effective June 30, 2011. 10 See 50 Stat. 844, 850 (1937). 20 See 76 Stat. 1173, 1191 (1962).
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00006 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56911
Pacific Northwest-Pacific Southwest weekly, monthly, and annual basis copy of the OATT can be obtained at Intertie (Intertie). In northern California, depending on hydrological conditions Western’s Web site at http:// Western owns the Malin to Round and other constraints that govern CVP www.wapa.gov/transmission/oatt.htm. Mountain portion of the PACI.21 In operations. CVP generation must be To the extent possible, if Western has 1984, Congress authorized Western to adjusted for PU, FP entitlements, sufficient transmission rights, Western’s construct or participate in the operations, maintenance, reserves, merchant will use its rights to meet construction of the COTP.22 In 2001, transformation losses, and certain custom product transmission Congress authorized Western to ancillary services before determining requirements. complete the Path 15 portion originally the net CVP generation amount C. Path 15 Information authorized under the COTP.23 Western, available for marketing. During some in marketing the Federal hydroelectric months, purchases may be required to In May 2001, DOE released its power generated from the CVP, has meet PU and FP Customers’ obligations, National Energy Policy recommending approximately 47 wholesale customers and only a negligible amount, if any, of Western take action to explore relieving serving an estimated two million BR will be available during some hours the constraints on Path 15. Western people. Western power customers of such months. analyzed the feasibility to construct the include four First Preference (FP) According to the Marketing Plan, Path 15 Transmission Upgrade Project Customers, public utility districts, state Western markets the BR separately or in which included building a third agencies, Federal agencies, irrigation combination with custom products. transmission line and other upgrades districts, municipalities, and Native These custom products could include that would allow about 1,500 MW of American tribes. Western acting on behalf of a customer additional electricity to be transmitted to: (1) Purchase some level of firming across the state. The path upgrade was B. The 2004 Marketing Plan power; (2) manage a portfolio of power intended to relieve constraints on the Western’s SNR markets hydropower resources; (3) provide scheduling existing north-south transmission lines. generation of the CVP and Washoe services per balancing authority (BA) In order to increase the path rating, Projects. From 1967 through 2004, operator protocols; and (4) procure Western determined a new 84-mile long, under the terms of Contract 14–06–200– ancillary services. For those BR 500-kV transmission line was needed 2948A (Contract 2948A) with the Pacific Customers desiring custom products, between PG&E’s Los Banos and Gates Gas and Electric Company (PG&E), the Western developed additional contracts Substations. Additionally, the Los CVP resources, along with other detailing these requirements. Banos and Gates Substations needed to Western resources, were integrated with Western classified customers who be modified to accommodate the new PG&E resources. PG&E served the contract for custom products into two equipment and a second 230-kV circuit combined Western/PG&E load with the different customer groups: Variable between Gates and Midway. integrated resource. Under this contract, Resource (VR) and Full Load Service Western and the Path 15 participants PG&E delivered power to both the (FLS) Customers. VR Customers completed the Path 15 Transmission Project Use (PU) and Preference Power schedule their Federal power from Upgrade in 2005. Western turned over Customers. Contract 2948A expired on Western into their own ‘‘resource the operational control of Western’s December 31, 2004, and PG&E informed portfolios’’ to meet their load Path 15 Transmission Upgrade to the Western it intended not to extend the requirements. The FLS Customers are California Independent System Operator contract beyond that date. As a result of those who require some additional (CAISO). Western maintains the the pending termination, Western products and services to meet their full- transmission lines and is compensated worked with its customers to develop load requirements and who contracted by Atlantic Path 15, LLC, for the and implement the 2004 Power with Western for such service. maintenance work costs. The CAISO Marketing Plan (Marketing Plan). The Marketing Plan also stipulated charges for use on the Path 15 Western published the Marketing Plan that Western would establish and Transmission Upgrade as part of its manage an exchange program to allow in the Federal Register on June 25, rates. Western does not sell all customers to fully and efficiently use 1999.24 It established the criteria for transmission capacity on the Path 15 their power allocations. Western marketing CVP and Washoe Project Transmission Upgrade. Western collects developed both hourly and seasonal power output for a 20-year period from revenues from the CAISO under its exchange programs. Further specifics January 1, 2005, through December 31, agreements with the CAISO. Under and stipulations of this program are 2024. Amendment No. 48, the CAISO remits The Base Resource (BR) is a available in Exhibit B of the BR contract. Pursuant to the Marketing Plan, BR revenue to Western from wheeling, fundamental component and the Customers pay for CVP network congestion, and Congestion Revenue primary power product marketed under transmission service with their BR. Rights associated with Western’s rights this Marketing Plan. Under previous 26 Western also provides operating on the Path 15. marketing plans, customers received a reserves to its customers per the BA area fixed capacity and load factor energy Power Repayment Study operator’s protocols to support BR, PU, allocation. Under the Marketing Plan, Western prepares a power repayment and FP deliveries. For all other Preference Customers (other than FP) study (PRS) each fiscal year (FY) to products, such as a custom product, receive an allocated percentage of the determine if revenues will be sufficient separate transmission arrangements BR. Each BR Customer signed a BR to repay, within the required time, all must be made by the applicable contract under the Marketing Plan.25 costs assigned to the commercial power customer with the appropriate The Marketing Plan acknowledges the transmission service provider (TSP). BR may vary widely on an hourly, daily, 26 Amendment No. 48 amended CAISO’s tariff to Customers interested in acquiring provide congestion revenues, wheeling revenues, and firm transmission rights auction revenues to 21 See 78 Stat. 756 (1964). transmission service from the CVP entities other than CAISO’s Participating 22 system above that provided for BR See 98 Stat. 403 (1984). Transmission Owners, if any such entities fund 23 See 115 Stat. 174 (2001). deliveries will need to request transmission facility upgrades on the CAISO grid. 24 See 64 FR 34417 (1999). transmission through Western’s Open See generally Federal Energy Regulatory 25 See 75 FR 76975 (2010). Access Transmission Tariff (OATT). A Commission Docket No. ER03–407–000.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00007 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56912 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
function. Repayment criteria are based into effect on a final basis on October 4, between the provisional rates and the on law, applicable policies (including 2005.28 The rates were amended by Rate existing rates are described in more DOE Order RA 6120.2), and authorizing Order No. 128 on July 26, 2006 29 and detail in the section titled ‘‘Rate legislation. extended by Rate Order No. 139 on Discussion.’’ The tables below compare August 12, 2008.30 The existing formula the current rates (FY 2011) for power, Existing and Provisional Rates rates expire on September 30, 2011. The transmission, and ancillary services The Deputy Secretary of Energy provisional rates continue the existing under the existing rate formulas to approved the existing formula rates for formula rate methodologies for power; estimated rates (FY 2012) under the power, transmission, and ancillary CVP, COTP, and PACI transmission; provisional rate formula methodologies services under Rate Order No. 115 on transmission of Western power by as well as any changes to the formula November 22, 2004.27 FERC confirmed others: Custom Product Power (CPP): rate methodology. All rates are subject and approved the rates and placed them and ancillary services. The only changes to change prior to October 1, 2011.
RATE COMPARISON
Percent Service Actual Estimated change Financial change Methodology change FY 2011 FY 2012 (%)
Power Service Rates
PRR ...... $75,751,929 ...... $73,468,299 ...... (3.01) ...... Forecasted financial None, billing clarifica- and/or operational tion only. data. FP Percentage ...... 4.80% ...... 4.77% ...... (0.63) ...... Change due to fore- Adopt a FP% true-up. casted operational data. Maximum FP Allocation 17.51% ...... 20.54% ...... 17.30 ...... Change due to fore- None. casted operational data. FP RR ...... $3,636,093 ...... $3,504,438 ...... (3.62) ...... Change due to fore- Adopt a FP% true-up. casted financial and/ or operational data. BR RR ...... $72,115,836 ...... $69,963,861 ...... (2.98) ...... Change due to fore- Adopt a FP% true-up. casted financial and/ or operational data. CPP ...... Pass through ...... Pass through ...... N/A ...... N/A ...... Added Components 2 and 3. VR Scheduling Charge $31.07 ...... $37.91 ...... 22.01 ...... Updated financial data None, charges set for (per schedule). 5-year rate period.
Transmission & Ancillary Services
CVP PTP Transmission $1.04 (April 2011) ...... $1.31 ...... 25.96 ...... Rate change due to the None. ($/kW—Month). anticipated comple- tion of new assets that support trans- mission function. CVP NITS ($/monthly) ... $1,783,441 ...... $2,247,754 ...... 26.03 ...... Rate change due to an- None. ticipated completion of new assets that support transmission function. CVP PTP Transmission $2.74 (Spring) ...... $2.72 (Winter) ...... (0.37) ...... Rate decrease due to None. ($/MWh). estimated change in financial data. PACI PTP Transmission $1.21 (Spring) ...... $1.22 (Winter) ...... 0.83 ...... Rate increase due to None. ($/MWh). estimated change in financial data. COTP PTP Trans- $2.74 (Spring) ...... $2.72 (Winter) ...... (0.73) ...... Rate decrease due to None. mission ($/MWh). estimated change in financial data. Third-Party Trans- Pass through ...... Pass through ...... N/A ...... N/A ...... None. mission. Unreserved Use Pen- N/A ...... 200% ...... New ...... New penalty charge ..... New. alties. Regulation and Fre- $4.33 ...... $4.05 ...... (6.47) ...... Decrease due to If self-provided, the quency Response ($/ change in financial penalty charge is the kW-month). data. greater of 150% of actual or 150% of market.
27 See 69 FR 70510 (2004). 28 See Western Area Power Admin., 113 FERC 29 See 71 FR 45821 (2006). ¶ 61,026 (2005). 30 See 73 FR 48381 (2008).
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00008 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56913
RATE COMPARISON—Continued
Percent Service Actual Estimated change Financial change Methodology change FY 2011 FY 2012 (%)
Spinning/Supplemental Price consistent with Price consistent with N/A ...... N/A ...... If self-provided, the Reserves. CAISO. CAISO. penalty charge is the greater of 150% of actual or 150% of market. EI Service ...... Tiered ...... Tiered ...... N/A ...... N/A ...... Charge greater of 150% of actual or 150% of market. Variable rate. GI Service ...... NA ...... New ...... New ...... New ...... New tiered method- ology similar to EI.
Certification of Rates submitted during the public 7. Rate Schedules include Western’s Administrator certified that consultation and comment period, the miscellaneous language changes and the provisional rates, Rate Schedules current rate action adopts existing billing clarifications. Formula rates CV–F13, CPP–2, CV–T3, CV–NWT5, formula rate methodologies for power; methodologies are included in the COTP–T3, PACI–T3, CV–TPT7, CV– CVP, COTP, and PACI transmission; attached provisional rate schedules. All UUP1, CV–SPR4, CV–SUR4, CV–RFS4, transmission of Western power by the formula rates contain three CV–EID4, and CV–GID1, for CVP firm others; CPP; and ancillary services with components. Component 1 is the power, transmission, and ancillary the following exceptions: methodology used to develop the rate services are at the lowest possible rates 1. Two new rate schedules: and is specific to each rate. Components consistent with sound business Unreserved Use Penalties (UUP) and 2 and 3 are applicable to all rate principles. The provisional rates were Generator Imbalance (GI); formulas. developed following administrative 2. Annual true-up for FP percentages; policies and applicable laws. 3. In addition to the existing 150 A. Power Rate Discussion FP and BR percent penalty on the CAISO market Rates Discussion price, Western will adopt a 150 percent The difference in the forecasted FY Following is a discussion comparing penalty on Western’s actual cost when 2012 revenue requirement (RR) and the the existing formula rates to the charging for ancillary services and will existing RR is the result of a change in provisional formula rates. Unless charge the greater of the two; projected revenue and expenses and not otherwise noted, the formula rate 4. Costs incurred under Energy a formula rate methodology change. The methodologies for power; CVP, COTP, Imbalance (EI)/GI when disposing of only change to this formula rate is the and PACI transmission; transmission of surplus energy, including negative adoption of an annual FP percentage Western power by others; CPP; and pricing of such energy, will be charged true-up. A change resulting from the FP ancillary services have not changed. The to the responsible party; percentage prior period true-up will percentage differences in rates noted in 5. For intermittent resources impact both FP and BR RR to ensure full the table above are due to estimated or interconnected to Western’s system, recovery of the Power Revenue forecasted data factors (costs, Western will not charge the 150 percent Requirement (PRR). investments, generation, load, etc.) and penalty, and charge the greater of not due to a change to the formula rate CAISO market price or Western’s actual Both the existing formula rate and the methodology. All FY 2012 rates are cost; provisional formula rate for FP estimates and subject to change prior to 6. Added Components 2 and 3, Customers consist of three components: publication of the final FY 2012 rate. standard cost recovery language, to CPP Component 1: Having considered all comments formula rate; and
Where: The formula rate also contains BR% = BR percentage for each customer as FP Customer Load = An FP Customer’s Components 2 and 3. indicated in the BR contract after forecasted annual load in megawatthours adjustments for programs, such as hourly Both the existing formula rate and the exchange (HE), if applicable. (MWh). provisional rate for BR consist of three Gen = The forecasted annual CVP and components: The formula rate also contains Washoe generation (MWh). Components 2 and 3. Power Purchases = Power purchases for PU Component 1: The table below compares the existing and FP loads (MWh). BR Customer Allocation = (BR RR × BR%) RR for FY 2011 to the estimated RR for PU = The forecasted annual PU loads (MWh). Where: FY 2012 under the provisional formula MRR = Monthly PRR. BR RR = BR Monthly RR. rates.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00009 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.006 56914 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
COMPARISON OF EXISTING TO PROVISIONAL PRR, AND ALLOCATION TO FP AND BR CUSTOMERS
Estimated RR for the provisional Service Existing RR formula rate Percent Change FY 2011 (effective FY 2012)
PRR ...... $75,751,929 $73,468,299 (3.01) FP RR ...... 3,636,093 3,504,438 (3.62) BR RR ...... 72,115,836 69,963,861 (2.98)
The 3.01 percent forecasted decrease on each FP Customer’s percentage, as FP customer’s percentage to ensure FP in the PRR is due primarily to a adjusted for prior period true-up, and Customers pay their proportionate share decrease in other expenses and increase the remainder to BR Customers based on of the annual PRR. Following the in transmission revenues, which offsets their contractual percentage. completion of the true-up, Western will expenses in the PRR. The increase in Western will continue to maintain its allocate the charge or credit through the transmission revenue is driven by the current policy and perform a FP PRR at the beginning of the following anticipated completion of assets percentage midyear review and adjust FY. Also, according to current policy, supporting the transmission function. the FP percentages if necessary. Any FP maximum percentage changes will As indicated in the current rate adjustment to the FP percentages at be established once at the beginning of structure, the power rates are published midyear will be applied to the annual each 5-year rate period. annually by September 30 and reviewed PRR and billed during the remainder of The table below compares the FP during March of each year. The annual the FY. In addition, Western is adopting percentages as well as their maximum PRR is allocated to FP Customers based an annual true-up methodology for each percentages for the two periods.
FP PERCENTAGE COMPARISON, AND ACTUAL MAXIMUM PERCENTAGES FOR EFFECTIVE RATE PERIOD
FP percentages Maximum FP customer percentage (annual) applied to the RR FP Customers Existing Estimated Existing Actual FY 2011 FY 2012 (FY 2005–2011) (FY 2012–2016) (%) (%) (%) (%)
Sierra Conservation Center ...... 0.37 0.37 1.39 1.58 Calaveras Public Power Agency ...... 0.90 0.90 3.49 3.81 Trinity Public Utilities District ...... 2.80 2.80 9.21 12.01 Tuolumne Public Power Agency ...... 0.73 0.70 3.42 3.16
Total ...... 4.80 4.77 17.51 20.56
The change in FP percentages is due miscellaneous expenses allocated to as adjusted for programs, such as HE if to changes in generation and FP power, such as settlements, California- applicable. customer loads and not a formula rate Oregon Intertie (COI) path operator The BR RR will be collected in two, methodology change. The increase in FP costs, etc.; (8) the pass through of 6-month periods: 25 percent for October maximum percentage is due to a FERC’s or other regulatory bodies’ through March and 75 percent for April collective increase in FP customer accepted or approved charges or credits; through September. However, the FP RR loads. (9) the pass through of the Host is not subject to the 25/75 percent split; During the effective rate period, if Balancing Authority’s (HBA) charges or and it will be collected evenly over a 12- deemed appropriate, Western will credits; (10) any other statutorily- month period. reevaluate the FP maximum percentage required costs or charges; and (11) any The formula rates will be effective at based on new data. other costs including uncollectible debt. the beginning of each FY and reviewed As stated above, the BR RR is the in March of each year. If the March Expenses are offset by revenues from remainder of the PRR less FP RR. When midyear review reflects a change of $5 PU energy, transmission revenue, the FP percentage is adjusted for a prior million or more, the annual PRR will be ancillary service revenue, scheduling period true-up, the BR will also be revised. The FP percentages are also adjusted. An example calculation is coordinator (SC), portfolio management reviewed at midyear. If the midyear shown in the comments section as well (PM) and VR charge administrative fees review reflects a change to a FP as in the rate schedule. or scheduling charge, all pass-through customer’s percentage of more than one- The provisional formula rates for the revenue, and any other miscellaneous half of 1 percent, that customer’s PRR as allocated to BR and FP revenue. percentage will be revised for the entire Customers includes: (1) Operations and The PRR will be allocated first to FP FY. Also, any adjustments as a result of maintenance (O&M) expense; (2) annual Customers based on their percentages the FP true-up will be incorporated in investment and replacement repayment; and prior year true-up, subject to the the PRR each October following the (3) aid-to-irrigation costs; (4) interest maximum cap, then the remaining PRR true-up. expense; (5) power purchases for amount will be allocated to BR The formula rates apply to CVP BR firming BR; (6) Washoe Project annual Customers based on their BR allocation and FP Customers. The estimated RRs costs after PU loads are met; (7) other percentages and prior year FP true-up, and FP percentages are subject to
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00010 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56915
change prior to the rates taking effect for schedule. This increase is based on a support the generation capability of the FY 2012. The RRs will be finalized by percentage change in O&M from the CVP system (including generation tie- Western on or before October 1, 2011. 2005 rate case. For FY 2013 through FY lines and radial lines) are included in 2016 VR scheduling charge increases 3 the CVP generation RR and are used in B. CPP percent each year to reflect inflationary the regulation and frequency response Under the CPP provisional rate, the cost increases. service RR. The costs associated with CPP cost recovery does not change from C. Transmission the CVP are allocated to the the existing formula rate methodology transmission and generation functions and remains 100 percent pass through. Cost-of-Service Study based on a ratio of transmission or The provisional formula rate also added Western is using the same generation plant to total plant. Component 2 and Component 3. The methodology to allocate costs to the CVP Firm and Non-Firm Point-to-Point provisional formula rate for CPP applies transmission RRs and regulation and to power supplied by Western to meet frequency response RR for both the The provisional formula rate applies a customer’s load. CPP may include existing and provisional formula rates. to CVP firm point-to-point (PTP) long- and short-term purchases at Western prepared a detailed cost-of- transmission service, existing CVP firm various rates. As more fully described in service (COS) study to determine the RR pre-OATT transmission service, and the rate schedule, the CPP provisional that will be recovered through the CVP CVP non-firm transmission service. formula rate is comprised of three regulation and frequency response Under the provisional formula rate, the components. All costs associated with service formula rate and the CVP, COTP, estimated rate for Component 1 for firm CPP will be recovered through and PACI transmission service formula and non-firm PTP service effective Component 1 of the formula rate that rates. The costs allocated through the October 1, 2011, is $1.31 per kilowatt passes through the cost of the purchase COS study generally include O&M, (kW) month. This is a 26 percent to a specific customer(s). Such costs interest, and depreciation expenses. increase from the April 1, 2011, CVP could include Western’s scheduling This combined COS study integrates all firm and non-firm PTP rate of $1.04 per costs as well as the cost of the power. three transmission systems. Each CVP, kW month. The increase is primarily The VR scheduling charge is to COTP, and PACI facility was researched due to the anticipated completion of recover Western’s cost for scheduling in order to determine its functional use. assets supporting the transmission VR customer’s CPP service. Under the The costs for CVP, COTP, and PACI function and not a formula rate provisional formula rate, Component 1, facilities that support the transfer methodology change. Both the existing the VR customer’s scheduling charge for capability of the transmission system formula rate and the provisional FY 2012 is $37.91 per schedule. This is (excluding generation tie-lines and formula rate for CVP firm and non-firm a 22 percent increase from the January radial lines) are included in the PTP services are comprised of three 1, 2005, through September 30, 2011, respective transmission system’s RR; components: VR scheduling charge of $31.07 per whereas, the cost for facilities that Component 1:
Where: miscellaneous costs associated with Effective October 1, 2011, the estimated CVP TRR = TRR is the cost associated with providing transmission services; (4) the monthly NITS RR is $2,247,754. This facilities that support the transfer cost for transmission scheduling, system RR is a 26 percent increase from the capability of the CVP transmission control and dispatch service is included April 1, 2011, monthly NITS RR of system excluding generation facilities in O&M; (5) the pass through of FERC’s $1,783,441. The increase is primarily and radial lines. or other regulatory bodies’ accepted or due to the anticipated completion of TTc = The TTc is the total transmission capacity under long-term contract approved charges or credits; (6) the pass assets supporting the CVP transmission between Western and other parties. through of the HBA’s charges or credits; function and not a rate methodology NITSc = The NITSc is the 12-month average (7) any other statutorily-required costs change. Both the existing and coincident peaks of Network Integrated or charges; and (8) any other costs provisional formula rates for this service Transmission Service (NITS) Customers associated with transmission service are comprised of three components: at the time of the monthly CVP including uncollectible debt. Revenues Component 1: transmission system peak. For rate from the sales of short-term, non-firm NITS customer’s monthly demand design purposes, Western’s use of the transmission will offset the TRR. charge = NITS customer’s load ratio transmission system to meet its statutory 1 Revenue from unreserved use of share × ⁄12 of the Annual Network obligations is treated as NITS transmission penalties exceeding TRR. This formula rate also contains transmission service cost will be Where: Components 2 and 3. applied as an offset to the TRR. NITS customer’s load ratio share = The NITS The provisional formula rate for CVP The estimated rates resulting from the customer’s load, hourly, or in accordance transmission service is based on a RR formula rate are subject to change prior with approved policies or procedures, that recovers: (1) The CVP transmission to the rates taking effect. The rates will (including behind the meter generation minus the NITS customer’s adjusted BR) system costs for facilities associated be finalized by Western on or before with providing transmission service; (2) coincident with the monthly CVP October 1, 2011. transmission system peak, averaged over the non-facility costs allocated to CVP NITS a 12-month rolling period, expressed as transmission service; (3) O&M costs, a ratio. cost of capital or interest expense, The NITS provisional formula rate Annual Network TRR = The total CVP TRR depreciation expense, and other applies to CVP NITS Customers. less revenue from long-term contracts for
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00011 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.007 56916 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
the CVP transmission between Western system control and dispatch service; (5) The estimated rates resulting from the and other parties. the pass through of FERC’s or other formula rate are subject to change prior This formula rate also contains regulatory bodies’ accepted or approved to the rates taking effect. The rates will Components 2 and 3. charges or credits; (6) the pass through be finalized by Western on or before The provisional formula rate for CVP of the HBA’s charges or credits; (7) any October 1, 2011. NITS is based on a RR that recovers: (1) other statutorily-required costs or COTP PTP Transmission The CVP transmission system costs for charges; and (8) any other costs facilities associated with providing associated with transmission service The provisional formula rate applies transmission service; (2) the non-facility including uncollectible debt. Revenues to COTP PTP transmission service. A costs allocated to transmission service; from the sales of short-term, non-firm comparison of the estimated rates (3) O&M cost, cost of capital or interest transmission will offset the TRR. resulting from Component 1 of the expense, depreciation expense, and Revenue exceeding cost from provisional formula rate for COTP firm other miscellaneous costs associated unreserved use of transmission PTP transmission service to the existing with providing transmission service; (4) penalties will also be applied as an COTP firm PTP transmission service the cost for transmission scheduling, offset to the TRR. rates are shown in the table below.
COMPARISON OF EXISTING RATES TO ESTIMATED PROVISIONAL RATES FOR COTP FIRM AND NON-FIRM PTP TRANSMISSION SERVICE
Existing COTP Estimated COTP rates rates Percent change Season FY 2011 FY 2012 (%) $/MWh) ($/MWh)
Spring ...... $2.74 $2.70 (1.46) Summer ...... 2.73 2.69 (1.47) Winter ...... 2.77 2.72 (1.81)
The existing and provisional formula Component 1: rate for COTP PTP transmission service consists of three components.
Where: that recovers: (1) The COTP revenue from COTP unreserved use COTP TRR = COTP Seasonal TRR (Western’s transmission system costs for facilities penalties. The estimated rates resulting costs associated with facilities that associated with providing transmission from the provisional formula rate are support the transfer capability of the service; (2) the non-facility costs COTP). subject to change prior to the rates Western’s COTP Seasonal Capacity = allocated to transmission service; (3) taking effect. The last month of the Western’s share of COTP capacity O&M costs, interest expense, summer seasonal rate (October) is in the (subject to curtailment) under the current depreciation expense, and other new rate period. Western will publish a COI transfer capability for the season. miscellaneous costs associated with rate for October 2011 before September The three seasons are defined as follows: providing transmission services; (4) the 15, 2011. The rates resulting from the Summer–June through October; Winter– cost of scheduling system control and provisional formula rate for the winter November through March; and Spring– dispatch service associated with COTP April through May. season will be finalized by Western on transmission; (5) the pass through of or before October 15, 2011, and effective FERC’s or other regulatory bodies’ This formula rate also contains November 1, 2011. Components 2 and 3. accepted or approved charges or credits; The estimated COTP PTP (6) the pass through of the HBA’s PACI PTP Transmission transmission service rate decreased charges or credits; (7) any other despite a forecasted 3 percent O&M statutorily-required costs or charges; The provisional formula rate applies inflationary increase, because interest and (8) any other costs associated with to PACI firm and non-firm PTP expense is forecasted to decrease. There transmission service including transmission service. The estimated firm is no formula rate methodology change. uncollectible debt. and non-firm PTP rates resulting from The provisional formula rate for The rates resulting from Component 1 Component 1 of the provisional formula COTP firm and non-firm PTP of the provisional formula rate may be rate for PACI transmission service are transmission service is based on a RR discounted for short-term sales and shown below.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00012 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.008 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56917
COMPARISON OF EXISTING RATES TO ESTIMATED PROVISIONAL RATES FOR PACI FIRM AND NON-FIRM PTP TRANSMISSION SERVICE
Existing PACI Estimated PACI rates rates Season FY 2011 FY 2012 Percent change $/MWh) ($/MWh)
Spring ...... $1.21 $1.21 No change. Summer ...... 1.21 1.21 No change. Winter ...... 1.15 1.22 6.09
The existing and provisional formula Component 1: rate for PACI transmission service consists of three components:
Where: penalties. The estimated rates resulting of receipt or any point of delivery will PACI TRR = PACI Seasonal TRR includes from the provisional formula rate are be assessed UUP. The penalty will be Western’s costs associated with facilities subject to change prior to the rates assessed at 200 percent of the firm PTP that support the transfer capability of the taking effect. The last month of the applicable rate when transmission is PACI. summer seasonal rate (October) is in the used and not reserved except where Western’s PACI Seasonal Capacity = Western’s share of PACI capacity (subject new rate period. Western will publish a noted in the rate schedule. to curtailment) under the current COI rate for October 2011 before September The provisional formula rate consists transfer capability for the season. The 15, 2011. The rates resulting from the of three components: three seasons are defined as follows: provisional formula rate for the winter Component 1: The penalty charge for Summer—June through October; season will be finalized by Western on a transmission customer who engages in Winter—November through March; and or before October 15, 2011, and effective unreserved use is 200 percent of Spring—April through May. November 1, 2011. Western’s approved transmission This formula rate also contains service rate for PTP transmission service Transmission of Western Power by Components 2 and 3. assessed as follows: (1) The UUP for a The estimated PACI PTP transmission Others single hour of unreserved use will be service rate remains unchanged, despite Effective October 1, 2011, the formula based upon the rate for daily firm PTP a 3 percent inflationary cost increase rate methodology for this service does service; (2) the UUP for more than one because of a forecasted decrease in not change from the existing assessment for a given duration (e.g., interest expense. The change in the methodology, and all costs are passed daily) will increase to the next longest winter rate is due to actual costs through under this rate schedule. The duration (e.g., weekly); and (3) the UUP exceeding forecasted costs. There is no existing and provisional formula rates for multiple instances of unreserved use formula rate methodology change. consist of three components: (e.g., more than 1 hour) within a day The formula rate for PACI Component 1: When Western uses will be based on the rate for daily firm transmission service is based on a RR transmission facilities other than its PTP service. The penalty charge for that recovers: (1) The PACI transmission own in supplying Western power and multiple instances of unreserved use system costs for facilities associated costs are incurred by Western for the isolated to one-calendar week would with providing transmission service; (2) use of such facilities, the customer will result in a penalty based on the charge the non-facility costs allocated to pay all costs, including transmission for weekly firm PTP service. The transmission service; (3) O&M costs, losses incurred in the delivery of such penalty charge for multiple instances of interest expense, depreciation expense, power. This formula rate also contains unreserved use during more than one and other miscellaneous costs Components 2 and 3. week within a calendar month is based associated with providing transmission These costs are fully recovered from on the charge for monthly firm PTP services; (4) the cost of scheduling the beneficiaries receiving this service, service. system control and dispatch service and there is no change in the existing The UUP will not apply to associated with PACI transmission; (5) formula rate methodology. transmission customers utilizing PTP the pass through of FERC’s or other transmission service under Western’s UUP regulatory bodies’ accepted or approved OATT as a result of action taken to charges or credits; (6) the pass through This is a new rate schedule effective support reliability. Such actions include of the HBA’s charges or credits; (7) any on October 1, 2011, through September reserve activations or uncontrolled other statutorily-required costs or 30, 2016. The UUP service is provided event response as directed by the charges; and (8) any other costs when a transmission customer uses responsible reliability authority such as associated with transmission service transmission service that it has not Sub-Balancing Authority (SBA), HBA, including uncollectible debt. reserved or uses transmission service in Reliability Coordinator, or Transmission The rates resulting from Component 1 excess of its reserved capacity. A Operator. of the provisional formula rate may be transmission customer that has not A transmission customer that exceeds discounted for short-term sales and reserved capacity or exceeds its firm or its firm or non-firm reserved capacity is revenue from PACI unreserved use non-firm reserved capacity at any point required to pay for all ancillary services
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00013 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.009 56918 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
identified in Western’s OATT associated performance, which will be charged the The formula rate for supplemental with the unreserved use of transmission greater of 150 percent of market or 150 reserve service is comprised of three service. The transmission customer or percent of actual cost. components as follows: eligible customer will pay for ancillary The spinning reserve charge is Component 1: The formula rate for services based on the amount of calculated for each hour during the supplemental reserve service is the transmission service it used but did not month in order to derive the total price consistent with the CAISO’s reserve. No penalty will be applied to monthly charge. The provisional market plus all costs incurred as a result the ancillary service charges. formula rate for spinning reserve service of the sale of supplemental reserves This formula rate also contains is comprised of three components as such as Western’s scheduling costs. For Components 2 and 3. follows: customers that have a contractual The provisional rate recovers the cost The formula rate for spinning reserve obligation to provide supplemental of transmission and applies a penalty service is the price consistent with the reserve service to Western and do not for such unreserved use. The revenue CAISO’s market plus all costs incurred fulfill that obligation, the penalty for resulting from the penalty portion will as a result of the sale of spinning non-performance is the greater of 150 be distributed as a credit to the relevant reserves, such as Western’s scheduling percent of Western’s actual cost or 150 TRR. The penalty rate is applicable for costs. percent of the CAISO market price. This all unreserved use of transmission and For customers that have a contractual formula rate also contains Components transmission in excess of reservation obligation to provide spinning reserve 2 and 3. except, as may be determined by The provisional rate formula includes: service to Western and do not fulfill that Western; for example, in emergencies or (1) A price consistent with the CAISO’s obligation, the penalty for non- reserve sharing activations. market price; (2) all costs incurred as a performance is the greater of 150 result of the sale of supplemental D. Ancillary Services percent of Western’s actual cost or 150 reserve service such as Western’s percent of the market price. This section includes provisional scheduling costs; (3) the cost of energy, formula rates for the following ancillary This formula rate also contains capacity, or generation that supports services: spinning reserve, supplemental Components 2 and 3. supplemental reserve service; (4) the reserve, regulation and frequency The provisional rate formula includes: pass through of the HBA’s charges or response, EI, and GI. Western’s costs for (1) A price consistent with the CAISO’s credits; (5) the pass through of FERC’s providing transmission scheduling, market price; (2) all costs incurred as a or other regulatory bodies’ accepted or system control and dispatch service, result of the sale of spinning reserves, approved charges or credits; and (6) any and reactive supply and voltage control such as Western’s scheduling costs; (3) other statutorily-required costs or are included in the appropriate the cost of energy, capacity, or charges. transmission or BR and FP power generation that supports spinning For customers that have a contractual formula rates. reserve service; (4) the pass through of obligation to provide supplemental Provisional formula rates are not FERC’s or other regulatory bodies’ reserve to Western and do not fulfill that changing from existing rate accepted or approved charges or credits; obligation, the penalty for non- methodologies, except where noted. GI (5) the pass through of the HBA’s performance is equal to the greater of is a new service effective October 1, charges or credits; and (6) any other 150 percent of actual cost of generation 2011. As it pertains to ancillary services statutorily-required costs or charges. For or 150 percent of the CAISO market rate schedules, in order to encourage customers that have a contractual price. good scheduling practices, Western is obligation to provide spinning reserve The cost for supplemental reserves adopting the 150 percent penalty on service to Western and do not fulfill that required to firm CVP generation for the actual cost in addition to the existing obligation, the penalty for non- current hour and the following hour is 150 percent penalty on market price, performance is the greater of 150 included in the PRR. Any supplemental and will assess the greater of the two. percent of actual cost or 150 percent of reserves may be sold at prices consistent The penalty will be applicable to the the CAISO market price. with the CAISO market price. Revenues following rate schedules: (1) EI service; The cost for spinning reserve service from the sale of supplemental reserves (2) GI service; (3) regulation and required to firm CVP generation for the will offset the PRR. The supplemental frequency response penalty for non- current hour and the following hour is reserve service formula rate will apply performance of self provision; (4) included in the PRR. Any surplus to SBA Customers who contract with spinning reserve penalty portion for spinning reserves may be sold at prices Western to provide this service. non-performance; and (5) supplemental consistent with the CAISO market price. Regulation and Frequency Response reserve penalty portion for non- Revenues from the sale of surplus Service performance. Also, any costs incurred spinning reserves will offset the PRR. under EI/GI when disposing of surplus The spinning reserve formula rate will Western is not proposing a change to energy, including negative pricing, will apply to SBA Customers who contract the existing formula rate methodology be assessed to the responsible party. with Western to provide this service. with the exception of the self-provision penalty, which will be charged the Finally, to the extent that an entity Supplemental Reserve Service incorporates intermittent resources, greater of 150 percent of actual or 150 Western will eliminate the 150 percent Western is not proposing a change to percent of market price. The regulation penalty; and Western will charge the the existing formula rate methodology rate effective April 1, 2011, was $4.33 greater of the CAISO market price or for supplemental reserve service, except per kWmonth. The rate effective during Western’s actual cost. for customers that have a contractual the FY 2012 rate period under the obligation to provide supplemental provisional formula rate is estimated at Spinning Reserve Service reserve service to Western and do not $4.05 per kWmonth. The forecasted rate Western is not proposing a change to fulfill that obligation, the penalty for decrease is primarily due to the the existing formula rate methodology non-performance will be charged the anticipated completion of assets for spinning reserve service, with the greater of 150 percent of market or 150 supporting transmission, which results exception of the penalty for non- percent of actual cost. in a decrease to cost of regulation, other
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00014 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56919
factors being equal. The provisional formula rate for this service is Component 1: comprised of three components.
The annual RR includes: (1) The CVP EI Service deliveries are charged the greater of 150 generation costs associated with Western is not proposing a change to percent of the CAISO market price or providing regulation, and (2) the non- the existing formula rate methodology 150 percent of Western’s actual cost, facility costs allocated to regulation. with the exception that: (1) The EI and (2) Western charges penalties The annual regulating capacity is one- charge will be the greater of 150 percent outside the bandwidth as an incentive half of the total regulating capacity of market or 150 percent of actual cost for good scheduling practices. bandwidths provided by Western under for under-deliveries outside the Given that Western’s customers will the interconnected operations bandwidth, and (2) any costs incurred be operating under existing agreements agreements with SBA members. under EI when disposing of surplus during the applicable rate period, The penalty for non-performance by Western will revisit FERC Order No. an SBA customer who has committed to energy, including negative pricing, will be assessed to the responsible party. 890’s approach as well as Western’s self-provision for their regulating existing settlements and billing capacity requirement will be the greater Any changes to EI charges result from changes to actual cost or market prices. processes and will consider a transition of 150 percent of Western’s actual costs to FERC’s methodology during or 150 percent of the CAISO market The provisional rate for EI services is comprised of three components: Western’s next rate process or earlier if price. deemed appropriate. Western will revise the formula rate Component 1: Accordingly, for deviations outside of resulting from Component 1 based on EI service is applied to deviations as the bandwidth, the EI service charge is either of the following two conditions: recovered using the greater of 150 (1) Updated financial data available in follows: (1) For deviations within the contractual bandwidth, there will be no percent of the CAISO market price or March of each year, or (2) a change in 150 percent of Western’s actual cost. the numerator or denominator that financial settlement unless otherwise dictated by contract or policy, rather, EI The actual cost is calculated using CVP results in a rate change of at least $0.25 generation RR and associated energy. per kW month. This formula also will be tracked and settled with energy; (2) negative deviations (under-delivery), Additional costs subject to recovery includes Components 2 and 3. include HBA’s charges or credits, This provisional formula rate for outside the deviation bandwidth, will be charged the greater of 150 percent of FERC’s or other regulatory bodies’ regulation and frequency response is accepted or approved charges or credits, based on an annual RR that recovers: (1) market price or 150 percent of Western’s and any other statutorily required costs The CVP generation costs associated actual cost; and (3) positive deviations or charges. with providing regulation; (2) the non- (over-delivery) outside the deviation bandwidth will be lost to the system, The EI service charge will be facility costs allocated to regulation; (3) recovered from SBA Customers that O&M costs, interest expense, except for any hour where Western have contracted with Western for this depreciation expense, and other incurs a cost, then that cost will be service. Since the actual cost is miscellaneous costs; (4) the pass borne by the responsible party. calculated based on Western’s cost of through of FERC’s or other regulatory Deviations that occur as a result of generation, it is subject to change prior bodies’ accepted or approved charges or actions taken to support reliability will to the effective rate period. credits; (5) the pass through of the be resolved in accordance with existing Below is an example of how the EI HBA’s charges or credits; (6) any other contractual requirements. Such actions charge is calculated using Component 1: statutorily required costs or charges; and include reserve activations or (7) any other costs associated with uncontrolled event responses as EI CHARGE EXAMPLE CALCULATION transmission service including directed by the responsible reliability uncollectible debt. authority, such as SBA, HBA, RC, or (COMPONENT 1) The regulation RR will be recovered TOP. The formula rate also contains from SBA Customers that have Components 2 and 3. On October 1, HE 1, Customer A has: Western will maintain its existing contracted with Western for this service. Scheduled Net Interchange ...... 90 MW To the extent that an entity incorporates tiered methodology for EI as defined by Actual Net Interchange ...... 102 MW variable resources, treatment of such contractual agreements. While FERC Actual Energy in excess of Sched- 12 MW will be determined in the associated Order No. 890 defines a three-tier uled Energy. interconnected operations agreement methodology, it allows alternatives to Contractual Bandwidth ...... 8 MW contract. The revenues from regulation the design if the rate schedule follows EI for HE 1 ...... 4 MW service will be applied to the PRR. The the intent of these principles: (1) estimated regulation RR resulting from Charges based on incremental cost or To derive the total monthly charge for the provisional formula rate is subject to some multiple thereof, and (2) charges Customer A, the EI is calculated for each change prior to the rate taking effect for must provide incentive for accurate hour that it occurs during the month. FY 2012. The regulation RR will be scheduling. The EI charge is based upon a finalized by Western on or before Western’s existing EI rate schedule comparison between the real-time October 1, 2011. follows FERC’s intent as follows: (1) For energy pricing from the CAISO for each To the extent that an entity deviations within the bandwidth, hour and Western’s actual cost, both incorporates intermittent resources, energy is returned; for deviations multiplied by 150 percent, for that same treatment of such will be determined in outside the bandwidth, over-deliveries hour. The higher of the two is applied the associated contract. are lost to the system; and under- to derive the EI charge. Therefore, the EI
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00015 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.010 56920 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
charge for October 1, HE 1, is calculated as follows:
October 1, hour ending 1 Price Price comparison MW Charge
Western’s Calculated Actual Cost ($18.27 × 150%) applied per $27.40 150% Actual < 150% of Market N/A N/A rate schedule. Real-Time CAISO price ($21.84 × 150%) applied per rate sched- 32.76 150% Market > Actual ...... 4 $131.04 ule. Note: EI charge for October 1, HE 1, is calculated as follows: 4 MW × $32.76 = $131.04.
Imbalances that occur as a result of serving load outside of SNR’s SBA will Accordingly, for deviations outside of action taken by the generator, at be required to dynamically schedule or the bandwidth, the GI charge is Western’s request, to support reliability dynamically meter their generation to recovered using the greater of 150 will not be subject to penalties. Such another BA. An intermittent resource for percent of the market price or 150 actions include directives by SBA, HBA, the limited purpose of these rate percent of Western’s actual cost. The Reliability Coordinators, or reserve schedules is an electric generator that is actual cost is calculated using CVP activations and frequency correction not dispatchable and cannot store its generation RR and associated energy. initiatives. output, and therefore, cannot respond to Additional costs subject to recovery changes in demand or respond to Service include: (1) HBA’s charges or credits; (2) transmission security constraints. FERC’s or other regulatory bodies’ This is a new rate schedule effective This formula rate also contains accepted or approved charges or credits; on October 1, 2011, through September Components 2 and 3. and (3) any other statutorily required 30, 2016. Western is proposing to adopt Similar to EI, FERC Order No. 890 costs or charges. its existing EI formula rate methodology defines a three-tier methodology for GI. The GI charge will be recovered from for GI. The provisional rate for this The order allows alternatives to designs SBA Customers that have contracted service is comprised of three if the rate schedule follows the intent of with Western for this service. Since the components: the three principles: (1) Charges are actual cost is calculated based on Component 1: GI is applied to based on incremental cost or some Western’s cost of generation, it is subject deviations as follows: (1) For deviations multiple thereof; (2) charges must to change prior to the effective rate within the bandwidth, there will be no provide incentives for good scheduling period. financial settlement, unless otherwise practices; and (3) provisions should Below is an example of how the GI dictated by contract; rather, GI will be address intermittent renewable charge is calculated using Component 1. tracked and settled with energy; (2) resources (wind/solar) and waive negative deviations (under-delivery), punitive penalties. GI SERVICE CHARGE EXAMPLE outside the deviation bandwidth, will Similar to Western’s existing EI rate be charged the greater of 150 percent of schedule, GI will follow FERC intent by: CALCULATION (COMPONENT 1) market price or 150 percent of Western’s (1) Establishing a tiered methodology; actual cost; and (3) positive deviations within the bandwidth, energy is If, on October 1, HE 1, Customer A has: (over-delivery), outside the deviation exchanged, over-deliveries are lost to bandwidth, will be lost to the system, the system, and under-deliveries are Scheduled Net Interchange ...... 102 MW except for any hour where Western charged the greater of 150 percent of the Actual Net Interchange ...... 90 MW incurs a cost, then that cost will be CAISO market price or 150 percent of Scheduled Generation in excess of 12 MW borne by the responsible party. Western’s actual cost; (2) penalties Actual Generation (under-deliv- Deviations that occur as a result of outside the bandwidth also provide ery). actions taken to support reliability will incentives for good scheduling Contractual Bandwidth ...... 8 MW be resolved in accordance with existing practices; and (3) to the extent that an GI for HE 1 ...... 4 MW contractual requirements. Such actions entity incorporates intermittent include reserve activations or resources, Western will eliminate the To derive the total monthly charge for uncontrolled event responses as 150 percent of market price and actual Customer A, the GI is calculated for directed by the responsible reliability cost factor for under-deliveries and will each hour that it occurs during the authority such as SBA, HBA, Reliability charge the greater of market price or month. The GI charge is based upon a Coordinator, or Transmission Operator. Western’s actual cost. comparison between the real-time To the extent that an entity Currently, Western has no existing energy pricing from the CAISO for each incorporates intermittent resources, customers subject to GI. Western will hour and Western’s actual cost, both deviations will be charged the same as revisit FERC Order No. 890’s approach multiplied by 150 percent, for that same defined above except for negative as well as Western’s existing settlements hour. The higher of the two is applied deviations outside the bandwidth and billing processes and will consider to derive the GI charge. (under-delivery) will not be charged the a transition to FERC’s methodology The following table is an example of penalty, only the greater of actual cost during Western’s next rate process or how Western determines the GI charge or market price. Intermittent generators earlier if deemed appropriate. related to the GI in the table above:
October 1, hour ending 1 Price Price comparison MW Charge
Western’s Calculated Actual Cost ($18.27 × 150%) applied per $27.40 150% of Actual < 150% of Mar- N/A N/A rate schedule. ket.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00016 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56921
October 1, hour ending 1 Price Price comparison MW Charge
Real-Time CAISO price ($21.84 × 150%) applied per rate sched- $32.76 150% Market > Actual ...... 4 $131.04 ule. Note: GI charge for October 1, HE 1 is calculated as follows: 4 MW × $32.76 = $131.04.
GI charges will not apply as a result than offsetting—one deficit and one EXAMPLE OF RELATIONSHIP BETWEEN of action taken to support reliability. surplus. Note—this only applies to EI AND GI—Continued Such actions include reserve activations netting within the bandwidth. or uncontrolled event response as • For example—Customer B ¥ directed by the responsible reliability EXAMPLE OF RELATIONSHIP BETWEEN << GI Service: 10 MW deficit ¥ authority, such as SBA, HBA, Reliability EI AND GI << EI service: 10 MW deficit Coordinator, or Transmission Operator. << Customer A charged: ¥10 MW for GI charge plus ¥10MW for EI charge To the extent that an entity Transmission Provider or SBA can charge incorporates intermittent resources, customers for both EI and GI service in the treatment of such will be determined in same hour, but not if the imbalances offset Statement of Revenue and Related the associated contract. each other. Expenses Relationship between EI and GI Example of Offsetting: • For example—Customer A The following table provides a EI and GI service charges and energy >> GI: ¥10 MW deficit summary of projected revenues and accounting will be netted within the >> EI service: 5 MW surplus expenses for the rates through the 5-year hour, or in accordance with approved >> Customer A charged: 5 MW (GI provisional rate approval period. The procedures, with charges for both charge) table includes comparison of existing services allowable only when the Example of Aggravating (increasing—abso- rate data to estimated rate data and the imbalances for both are deficit, rather lute value) difference.
SUMMARY TABLE OF REVENUES AND EXPENSES
Rate Recovery CVP, COTP, and PACI—5-Year Rate Comparison Existing (FY 2006–FY 2010) to Provisional Rate Period (FY 2012–FY 2016) Total Revenue and Expenses (in thousands) Existing Rate Pe- Provisional Rate Revenue or Expense Category riod FY 2006–FY Period FY 2012– Differences 2010 FY 2016
Total Revenue ...... $1,563,274 $1,955,569 $392,295 ...... Revenue Distribution. Expenses: O&M ...... 411,204 496,505 85,301 Purchase Power & Transmission ...... 875,402 1,180,215 304,812 Interest Expense ...... 26,371 50,881 24,510 Other Expense (inc. wheeling) ...... 177,817 173,331 (4,486)
Total Expenses ...... 1,490,794 1,900,931 410,137
Principal Payments: Capitalized Expenses (deficits) ...... 4,890 0 (4,890) Original Project and Additions ...... 51,075 52,644 1,569 Replacements ...... 14,521 0 (14,521) Aid to Irrigation ...... 0 0 0 Power Rights ...... 1,994 1,994 0
Total Principal Payments ...... 72,480 54,638 (17,842)
Total Revenue Distribution ...... 1,563,275 1,955,569 392,294
Basis for Rate Development and responses discussed below are: (1) Several customers expressed BR and FP power; (2) CVP transmission; appreciation for Western’s efforts during The existing formula rate (3) ancillary services; and (4) other the comprehensive informal and formal methodologies expire on September 30, comments. Also, questions received rate process and support maintaining 2011. Western considered all comments from customers during the public the existing formula rate methodologies. received during its public consultation consultation and comment period were BR and FP Power Comments and comment period. The comments answered and resolved and are not and responses, paraphrased for brevity discussed below. Those questions and A. Comment: During the formal when not affecting the meaning of the responses are posted at Western’s Web process, the FP Customers stated statement(s), are discussed below. Direct Western should consider the following site located at: http://www.wapa.gov/sn/ quotes from comment letters or the in its final rate filing: (1) Perform a FP marketing/rates/ratesProcess/ public comment forum are used for percentage true-up each year; (2) clarity where necessary. The comments formalProcess/CIL2011/index.asp. maintain a maximum percentage
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00017 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56922 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
threshold; (3) any increases at midyear Response: Western considered be applied to both FP and BR Customers be collected over remaining months of customer comments and is adopting a to ensure full cost recovery of the PRR. the FY versus collected in one month; true-up methodology for FP Customers As shown in Table 1, the total PRR for (4) include a requirement that Western each year in order to ensure FP Year 1, as published on October 1, is consider input from FP Customers prior Customers pay their proportionate share $75,000,000, and the estimated payment to publishing percentages; (5) provide of the PRR. The FP percent true-up is allocated to customers based on their an explanation for any difference calculation will be based on actual data estimated FP and BR percentages. between FP and PU payment obligation; for the FY being adjusted. Changes to Following a true-up of FP percentages in and (6) provide customers with advance PRR based on FP percentage true-up Year 2, the difference between estimated notice (6 months to 1 year) if changes calculations will be incorporated in the and actual will be reflected in the PRR to maximum percentages are PRR at the beginning of each FY as in Year 3. anticipated. shown in the example below, and will
TABLE 1—ESTIMATED AND ACTUAL YEAR 1 PRR ALLOCATION DUE TO FP % TRUE-UP
Year 1 FP and Year 1 FP % (based on Year 1 FP and Year 1 actual FP % BR actual Difference FP Customer estimate) BR PRR (determined during year 2) (adjusted) (applied in year allocation PRR allocation 3)
Customer A ...... 0.35% ...... $262,500 0.38% ...... $285,000 $22,500 Customer B ...... 0.90% ...... 675,000 0.85% ...... 637,500 (37,500) Customer C ...... 2.80% ...... 2,100,000 2.90% ...... 2,175,000 75,000 Customer D ...... 0.75% ...... 562,500 0.75% ...... 562,500 0
Total ...... 4.80% ...... 3,600,000 4.88% ...... 3,660,000 60,000
BR Customers ...... Contractual % ...... 71,400,000 Contractual % ...... 71,340,000 (60,000)
Total PRR (Year 1) ...... 75,000,000 Total PRR ...... 75,000,000 0
Beginning in Year 3, the PRR, as adjustment (difference seen in Table 1) both FP and BR Customers are published on October 1, is $73,000,000. from Year 1 is factored in the PRR for appropriately adjusted as shown in the Based on the true-up methodology, the Year 3, and payment obligations for Table 2 below.
TABLE 2—FP % ADJUSTMENT FROM YEAR 1 (ACTUAL TO ESTIMATED PAYMENT) APPLIED IN YEAR 3
PY FP true-up FP Customer Year 3 est. FP % Year 3 estimated (Year 1 true-up Total year 3 bill PRR payment amount)
Customer A ...... 0.35% ...... $255,500 $22,500 $278,000 Customer B ...... 0.90% ...... 657,000 (37,500) 619,500 Customer C ...... 2.85% ...... 2,080,500 75,000 2,155,500 Customer D ...... 0.77% ...... 562,100 0 562,100
Total ...... 4.87% ...... 3,555,100 60,000 3,615,100
BR Customers ...... Contractual % ...... 69,444,900 (60,000) 69,384,900
Total PRR (Year 3) ...... 73,000,000 0 73,000,000
Based on the true-up adjustment from of the FY and during the midyear FP percentage appropriate, Western will Year 1, the PRR is appropriately percentage review. Western intends on notify the customers. Finally, as allocated to both FP and BR Customers continuing with this communication discussed during informal rate in Year 3. effort. Western is adopting a true-up for meetings, while both FP and PU load Western will continue to: (1) Maintain the FP Customers’ allocation of the PRR; obligations are statutory, cost recovery its maximum percentage methodology therefore, the FP Customers will pay obligations vary. Western, in concert so that during periods of low hydrology their proportionate share of the PRR up with Reclamation and customers, there is limited PRR financial obligation to the maximum FP percentage. Western established a cost recovery policy for for FP Customers; (2) collect costs from is changing the language in the BR and PU, namely, the PU cost sub-allocation changes at midyear over remaining FP power rate schedule to reflect the methodology, and recovers PU costs months in FY; and (3) maintain its annual FP true-up procedure. Also, annually. Alternatively, FP Customers’ current communication procedures according to current policy, FP cost recovery methodology was including receiving input during maximum percentages are established established through Western’s rate development of percentages. Western once at the beginning of each 5-year rate adjustment procedures. Further, FP currently notifies and receives input adjustment period, and generally do not Customers are power customers and from the FP Customers when change. While changes are not more closely aligned with Western’s developing the FP percentages prior to anticipated, if Western deems a review Preference Customers than finalizing the FP percentage at the start of the FP Customers’ maximum Reclamation’s water customers.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00018 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56923
B. Comment: A customer suggested received. Finally, while the factors increase should be based on actual costs that Western consider publishing the discussed above are outside of versus the set 3 percent per year final PRR by September 15, rather than Western’s control, Western will increase. by September 30, to aid customers in continue to work with other agencies, Response: Western considered their budgeting process. when possible, in an attempt to address customers comments and re-analyzed its Response: Western’s PRR developed the factors, such as working with VR scheduling charge rate development prior to the start of each FY is Reclamation in an effort to stabilize the and confirmed that its results are still dependent on the timing and receipt of Restoration Fund. Given legal and valid for the rate period. Western’s O&M other data that impacts the PRR, such as policy constraints and the fact the expense for the period of 2005 through transmission and regulation RRs, FP decisions are made by other agencies, 2010 increased, on average, 4 percent load projections, power purchases, and outside factors or markets, Western annually. Western’s O&M for the other financial or operational data. cannot guarantee any outcomes. relevant rate period is expected to Western may require time beyond D. Comment: Several customers increase 3 percent annually, partially September 15 to finalize the PRR and suggested that the HE program should because FY 2011 and FY 2012 have no other rates. In response to customers’ be adjusted annually based on a formula cost-of-living adjustments to payroll. budgeting needs, Western plans to (PRR/forecasted BR) with a true-up The prospective annual rate and cost publish a PRR forecast during May of provision. recovery for this service totals each year to provide rate information to Response: Western’s current HE approximately $30,000. A 3 percent customers for budgeting and other methodology ensures the cost of BR and purposes. Additionally, Western will HE energy is valued the same in the inflationary increase on $30,000 is $900. continue to strive for rate stability and month the energy is used. Valuing the Because the VR scheduling charge is predictability. While Western will HE energy based on derived annual primarily driven by labor costs, Western attempt to publish the PRR by costs and BR energy based on derived believes its charge is supported by September 15, it will maintain its monthly costs creates inequities for history and future projections, and current publication date of September energy in similar periods. Western’s outweighs the cost of performing annual 30. There will be no change to the rate analysis of the customers’ proposal adjustments. schedule. revealed that assessing HE monthly, H. Comment: A customer commented C. Comment: Several customers rather than yearly, has a cumulative that Scheduling Coordinator (SC) and suggested that Western establish a minimal monetary effect. The HE Portfolio Management (PM) charges for trigger or safety valve in the formula rate program is voluntary, and Western will Full Load Service Customers should be to defer or terminate costs when continue to support the program in the reviewed and adjusted annually based Western’s rates are uneconomic due to current form. on actual costs. extended periods of low generation or E. Comment: A customer suggested Response: The SC and PM charges are operational constraints. the HE program should be allocated 50 established in the scheduling Response: Western has a statutory percent on the number of participants coordinator and FLS contracts and are obligation to recover its costs within and 50 percent on BR percentage. outside the scope of this public process. certain prescribed periods. Western also Response: As Western stated in However, to provide clarity on these ensures its costs are the lowest cost comment D above, valuing the HE comments, when Western revised the possible consistent with sound business energy differently than BR energy SC and PM charges, it performed an in- principles. Additionally, Western creates inequities. Currently, in depth analysis that considered all of the continues to strive for rate stability. accordance with Western’s BR contracts, elements that contribute to the cost of Western’s recent PRR forecast exhibits HE is generally allocated 100 percent providing SC and PM services. Findings stable, level rates. From the comments, based on the number of participants. from, and an explanation of the Western understands the customer rate Here, a customer requested a change to methodology used to conduct the study, volatility is primarily driven by the HE program allocation methodology, were presented to the customers at the Reclamation’s Restoration Fund costs, which is contractual and not part of the October 29, 2009, Informal Rates hydrology, market conditions, pumping rate process. The HE program is meeting. At that meeting, Western stated or biological restrictions, or other factors voluntary, and Western will continue to costs for performing its CVP legislative outside of Western’s control. While support the program in the current form. and statutory requirements and these items are outside the scope of the F. Comment: A customer commented scheduling those requirements are rate process, Western understands the that Western should clarify the general appropriately included in O&M. The customers’ position that if the project power contract provision (GPCP) 11 information presented at the meeting becomes uneconomic due to these types meaning of ‘‘date of a rate change’’ and showed that Western’s cost for of external factors, project repayment if it allows a preference customer to providing the necessary SC and PM could be impacted. Deferring Western’s terminate its Federal power allocation services as related to meeting these costs from one period to a future period each time a new PRR is developed and requirements are paid for by all of the or periods, however, introduces external implemented. and unpredictable volatility to an Response: While GPCPs are outside CVP power customers. The costs for otherwise stable PRR. Additionally, the scope of the rate process, GPCP 11 providing additional and separate SC generation triggers are not fully known is intended to provide an opportunity to and PM services are paid for by those until the April-through-June time frame; allow a customer to terminate a contract entities requesting such services, at no therefore, a change to an annual PRR when Western adjusts the rates through additional cost to other CVP power could not be perfected until as late as the formal rate adjustment proceedings. customers. June creating cash-flow concerns. A rate adjustment is defined by As discussed in the October 29, 2009, Western previously responded to regulation. The regulations state that a Informal Rates meeting, Western did customers’ concerns to align power change in a monetary charge that results increase future SC and PM rates for recovery more closely with generation from a formula is not a rate adjustment. inflation and salary increases and by billing 75 percent of the BR RR in the G. Comment: Several customers’ committed to review the charges on an period where the most benefit is suggested the VR scheduling charge ongoing basis.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00019 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56924 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
CVP Transmission Comments During the informal rate process, customer’s research into the matter, I. Comment: A customer commented Western engaged customers and sought Western is concerned about adopting a that Western should waive UUP for input and comments regarding its pricing methodology that would allocate unscheduled use of the system related formula rates. Additionally, during the specific network upgrade costs to a contingency event, such as reserve June 25, 2010, Informal Rates meeting, commensurate to individual benefits. activation, and clarify in the appropriate Western provided a forecast of its Such an approach would be difficult rate schedule to protect reserve sharing transmission rates based on currently and costly to administer. Under such an agreements. planned and funded projects. Western approach, any customer could argue the Response: Western exempts the also published on its Open Access Same benefits it receives are not assessment of UUP to customers for Time Information System (OASIS) and commensurate to its costs. Such an actions taken by Western to support Rates Web site, transmission rate approach could require Western to reliability, such as reserve activations or forecasts on May 20, 2010, and evaluate each and every line and an uncontrolled event response. Reserve November 22, 2010, to include the rate determine how much each and every activation from reserve sharing impact of the SVS and other customer benefits. The process would agreements in response to a said event transmission projects. require Western to determine how to The SVS Project is a network upgrade, will be exempt from UUP. However, an allocate the costs for reliability benefits. as defined under Western’s OATT, for Furthermore, it becomes difficult to exemption from the assessment of UUP the continued reliable operation and determine, over time, which users does not relieve customers from paying support of Western’s CVP transmission benefit from which upgrades. Some for unscheduled or unreserved system; and, as a result, all of Western’s upgrades are made possible by others— transmission and ancillary services, if network customers receive benefits from some are required because of others. used. Western also recognizes the limitations J. Comment: Several customers the SVS Project. Western’s existing and of establishing rate-making policy based commented that Western’s transmission provisional formula rate methodologies on a NOPR, which is not yet final. In cost allocation methodology, as it relates are the same and allocate network some instances, FERC’s final decision to the Sacramento Area Voltage Support upgrade costs to Western’s transmission has varied from its NOPR. Because of (SVS) Project, is unreasonable and customers based on system usage and the uncertainties associated with Western should consider: (1) Allocating reserved capacity. Therefore, in this utilizing a benefit pricing model at this costs based on proportional benefits; (2) case the application of incremental time, Western does not believe it is allocating costs using incremental pricing or other pricing methodology for prudent to adopt such a model. pricing; (3) allocating costs directly to the SVS Project is inappropriate. Further, Western cannot exclude the Western also evaluated the ‘‘and’’ beneficiary; or (4) excluding costs from pricing model suggested by earlier rates. costs of the SVS Project from its rates. Unless specifically authorized by comments. Western does not believe it Response: Western considered the is equitable to charge both the customers’ comments, reviewed its rate Congress, Western must recover all of its costs. Western does not have embedded cost and incremental cost to methodology and alternatives, and certain users of the grid. Such a pricing determined that its existing and Congressional authority to exclude the costs of SVS, and Western must recover policy would place an undue and provisional cost allocation methodology discriminatory burden on a small group is consistent with Western’s statutory those costs. As part of the formal rate process, of customers. rate recovery obligations. Western began Western gave the customers an One customer referencing Western’s planning, in collaboration with its opportunity to provide any information OATT, Attachment P, stated that customers, to mitigate the diminishing on other authorities that would allow Western has the ability to allocate costs reliability operation margins of its Western to capture transmission costs of new transmission on a case-by-case transmission network in the Sacramento for a single facility under both basis. Western’s OATT, Attachment P, region as early as 2001. As part of embedded costs and incremental costs sets forth the provisions for cost Western’s SVS Program Draft or under an alternative methodology. allocation related to transmission Supplemental Environmental Impact While Western develops its rates under planning and not transmission rates. Statement, Western identified the DOE orders and is not bound by pricing Western remains committed to an open purpose and need for the SVS Project. policies of others, Western believes it is and transparent transmission planning Western’s CVP transmission system is important to understand other process. affected by voltage stability, reliability, authorities, such as FERC policies, and For the reasons discussed above, and security of the greater Sacramento- evaluate them. Western believes the application of area transmission system. The One customer commented that incremental transmission pricing or transmission studies performed in 2006 pursuant to FERC’s June 17, 2010, other transmission pricing methodology and 2007 continued to show that the Notice of Proposed Rulemaking recommended by customers for the SVS existing transmission lines in the greater (NOPR),31 FERC now requires that cost Project is inappropriate at this time and Sacramento area had reached their be allocated roughly in proportion to will not implement either. maximum power transfer limits. As a benefits. Under the NOPR, the customer K. Comment: Western should reflect result, load-serving entities and utilities implied that if a customer receives no the full 270 MW of incremental capacity in the area have taken interim measures benefits from a network upgrade, the for SVS in its rate. to avoid potential uncontrolled system- Response: As stated in Western’s customer should not be allocated any wide outages; however, in an effort to response on February 23, 2011, Western costs for the network upgrade or at least, avoid load shedding and potential estimated 126 MW of new transmission the customer only should be allocated rotating blackouts and in order to ensure capacity from SVS for the purpose of costs in proportion to the benefits. the continued reliable operation of forecasting its 2012 rate. The actual While Western appreciates the Western’s system and to meet its capacity would be based on Western’s contractual and statutory obligations, 31 See Transmission Planning and Cost Allocation system study results at the time the SVS Western determined it was necessary to by Transmission Owning and Operating Public Project became commercially construct the SVS Project. Utilities, 131 FERC ¶ 61,253 (2010). operational and, subsequently, be used
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00020 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56925
in determining the effective rate under just market cost for deviations outside and supplemental reserves. Customers the provisional transmission formula the bandwidth for EI, GI, and when also commented that CVP generation rate. Study results completed in April customers self-provide but fail to should not be reserved for a subset of 2011 indicated that 165 MW of perform for spinning and supplemental customers, but rather should be made additional transfer capability into the reserves and regulation, respectively. available for all CVP Preference Sacramento area would be available; Response: Western agrees with the Customers. Alternatively, customers therefore, 165 MW will be used in customer’s suggestion that the 150 requiring regulation should (1) Use their calculating Western’s forecasted CVP percent penalty should be applied to BR, if available, and (2) if not, Western transmission rate. both the market price and Western’s should procure on their behalf, or (3) L. Comment: A customer stated that it actual cost. Currently, Western applies those requiring regulation should self- receives no benefit from the network the 150 percent penalty on the market provide. upgrade and further requested price only and is adopting the 150 Response: The marketing of regulation clarification of the extent to which the percent penalty for the actual cost. and frequency response service is transmission upgrade will reduce or Without a penalty on Western’s actual outside the scope of this rates process. eliminate the need for Western to rely cost, there is no penalty. Because the Western will continue to follow the on Sutter Energy Center (Sutter) for penalty is intended to incent good terms of its 2004 Marketing Plan, which voltage support. scheduling, or encourage customers states that CVP generation must be Response: Western’s transmission with a requirement to self-provide adjusted for reserves, as well as other customers benefit from the addition of ancillary services to perform their obligations, such as project use and network upgrades that improve reliable obligation, Western concluded the losses, before CVP generation is operation of the network. As described penalty should also apply to its actual available for marketing. Western’s in the response to Comment ‘‘J’’ above, cost. This will be applicable to the policy-decision and rate methodology Western constructed the SVS Project as following rate schedules: (1) EI service; used to recover the cost from entities a network upgrade to ensure the (2) GI service; (3) regulation and requiring regulation has been in place continued reliable operations of the CVP frequency response service (penalty for since 2005 and has generated annual Federal transmission system. The SVS non-performance); (4) spinning reserve revenue averaging approximately $1.2 Project will also reduce the reliance service (penalty for non-performance); million. That revenue reduces the upon remedial action schemes (RAS) and (5) supplemental reserve service overall cost in the PRR. (including the RAS for Sutter). Sutter’s (penalty for non-performance). obligation to provide voltage support as O. Comment: A customer suggested Other Comments a function of NERC/WECC reliability that Western charge any costs incurred R. Comment: A customer commented requirements will not change as a result under EI and GI, including negative that Western should include Restoration of the SVS transmission project. pricing, when disposing of surplus Fund costs in the generation RR. M. Comment: A customer commented energy to the responsible party. Response: Western is a billing agent that intermittent resources should not Response: Pursuant to Western’s EI for Reclamation, and the Restoration degrade or compromise existing and GI rate schedules, positive Fund is not a part of Western’s costs. reliability of the CVP; additions or deviations (over-delivery), outside the The billing requirements for the integration of renewable resources bandwidth, are lost to the system. Restoration Fund were set in a separate should be fully studied and costs should However, Western agrees with the public process, and thus are outside the be appropriately allocated. commenter that Western should charge scope of this public process. Additionally, customers requested costs to responsible parties in instances S. Comment: A customer suggested Western involve all rate payers on all where Western incurs a cost for that Western should offer a policy to proposed future expansion of CVP disposing of surplus energy, and challenge costs in the Restoration Fund. transmission network. Western will charge accordingly. Response: Western, as the Restoration Response: Western agrees intermittent P. Comment: A customer asked that Fund billing agent for Reclamation, will resources should not degrade or Western consider reinstating continue to work with Reclamation to compromise the reliability of the CVP. compensation to generators, including examine and explain Restoration Fund Western’s future transmission planning Sutter, for reactive power supplied to costs. This and other Restoration Fund processes are outside the scope of this support the Sacramento region, comments should be addressed in a process. Western’s OATT, Attachment particularly to the SMUD and Roseville Restoration Fund public process and are P, delineates Western’s transmission service areas. outside the scope of this public process. planning process. Western reminds its Response: Western reviewed the T. Comment: A customer suggested customers and others that Western history of removing reactive power from that the Restoration Fund be recovered typically holds quarterly transmission its TRR, analyzed its current operations on a moving-average basis to avoid rate meetings, prepares and presents its 10- and FERC comparability rules, and shock. year transmission plan annually, and determined that conditions and Response: Western, as the billing posts meeting notifications, documents, limitations existing during our Rate agent, will continue to work with and plans on its OASIS at http:// Order WAPA–128 filing continue to Reclamation to examine the Restoration www.oatioasis.com/wasn/index.html. exist today. Therefore, based on the Fund. This and other Restoration Fund As intermittent resource entities request reasons previously articulated in comments should be addressed in a interconnection to Western’s system, Western’s Rate Order WAPA–128, and Restoration Fund public process and are Western incorporates such requests into to continue to adhere to FERC outside the scope of this public process. its process and ensures costs are comparability standards, Western is not Availability of Information appropriately allocated. changing from its current methodology. Q. Comment: Several customers Information about this rate Ancillary Services Comments commented that Western should adjustment, including PRS, rate N. Comment: A customer suggested restructure regulation and frequency brochure, studies, comments, letters, that Western apply 150 percent penalty response services to be consistent with memorandums, and other supporting to market and actual cost rather than how services are provided for spinning material made or kept by Western and
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00021 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56926 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
used to develop the provisional formula Order Applicable: To the Base Resource (BR) rates, is available for public review at In view of the foregoing and under the and First Preference (FP) Power the SNR office, located at 114 Parkshore authority delegated to me, I confirm, Customers. Drive, Folsom, California, 95630, or approve, and place into effect on Character and Conditions of Service: where available at the following Web October 1, 2011, on an interim basis, Alternating current, 60-hertz, three- site: http://www.wapa.gov/sn/ Rate Order WAPA–156, which includes phase, delivered and metered at the marketing/rates/. Rate Schedules CV–F13, CPP–2, CV–T3, voltages and points established by Ratemaking Procedure Requirements CV–NWT5, COTP–T3, PACI–T3, CV– contract. This service includes the TPT7, CV–UUP1, CV–SPR4, CV–SUR4, Central Valley Project (CVP) Environmental Compliance CV–RFS4, CV–EID4, and CV–GID1, for transmission (to include reactive supply In compliance with the National the CVP, COTP, and PACI of Western. and voltage control from Federal Environmental Policy Act of 1969 By this Order, I am placing the rates into generation sources needed to support (NEPA) (42 U.S.C. 4321, et seq.), the effect in less than 30 days to meet the transmission service), spinning Council on Environmental Quality contract deadlines, to avoid financial reserve service, and supplemental Regulations for implementing NEPA (40 difficulties and to provide a rate for a reserve service. CFR parts 1500–1508), and DOE NEPA new service. These rate schedules shall Power Revenue Requirement (PRR): Implementing Procedures and remain in effect on an interim basis Western will develop the PRR prior to Guidelines (10 CFR part 1021), Western pending FERC’s confirmation and the start of each fiscal year (FY). The has determined that this action is approval of them or substitute formula PRR will be divided in two 6-month categorically excluded from further rates on a final basis through September NEPA analysis. 30, 2016, or until superseded. periods, October through March and Dated: September 2, 2011. April through September, based on FP Determination Under Executive Order Daniel B. Poneman and BR percentages. The PRR for the 12866 Deputy Secretary April-through-September period will be reviewed in March of each year. The Western has an exemption from Rate Schedule CV–F13 centralized regulatory review under review will analyze financial data from Executive Order 12866; accordingly, no (Supersedes Schedule CV–F12) the October-through-February period, to clearance of this notice by the Office of Central Valley Project the extent information is available, as Management and Budget is required. well as forecasted data for the March- Schedule of Rates For Base Resource through-September period. If there is a Submission to the FERC and First Preference Power change of $5 million or more, the PRR The provisional formula rates herein Effective: October 1, 2011, through will be recalculated for the entire FY. confirmed, approved, and placed into September 30, 2016. The PRR is allocated to FP Customers effect, on an interim basis, together with Available: Within the marketing area and BR Customers based on formula supporting documents, will be served by the Western Area Power rates, as adjusted for Hourly Exchange submitted to FERC for confirmation and Administration (Western), Sierra (HE), FP true-up calculation, and final approval. Nevada Customer Service Region. midyear adjustments.
EXAMPLE OF PRR ALLOCATION TO FP AND BR
Component Formula Allocation
Annual PRR ...... $70,000,000 FP Customers’ Allocation (Total FP % = 5%) ...... $70,000,000 × 5% ...... 3,500,000 Remaining PRR Allocated to BR ...... $70,000,000—$3,500,000 ...... 66,500,000 Note: This example is intended to show the PRR allocation to the customer groups and is not adjusted for billing, midyear adjustments or FP true-up calculation.
FP Power Formula Rate: the relevant FP percentage. The formula The annual FP customer allocation is rate for FP power has three components. equal to the annual PRR multiplied by Component 1:
Where: Project Use = The forecasted annual Project there is a change in a FP customer’s FP Customer Load = An FP Customer’s Use loads (MWh). percentage of more than one-half of 1 forecasted annual load in megawatthours MRR = Monthly PRR. percent, the percentage will be revised (MWh). Western will develop each FP for the April-through-September period Gen = The forecasted annual CVP and customer’s percentage prior to the start and billing adjustments made for the Washoe generation (MWh). of each FY. During March of each FY, October-through-March period to reflect Power Purchases = Power purchases for each FP customer’s percentage will be the revised percentage. Project Use and FP loads (MWh). reviewed. If, as a result of the review,
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00022 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.011 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56927
TABLE 1—ESTIMATED AND ACTUAL YEAR 1 PRR ALLOCATION DUE TO FP % TRUE-UP
Year 1 FP and Year 1 FP % (based on Year 1 FP and Year 1 actual FP % BR actual Difference FP Customer estimate) BR PRR (determined during year 2) (adjusted) (applied in year allocation PRR allocation 3)
Customer A ...... 0.35% ...... $262,500 0.38% ...... $285,000 $22,500 Customer B ...... 0.90% ...... 675,000 0.85% ...... 637,500 (37,500) Customer C ...... 2.80% ...... 2,100,000 2.90% ...... 2,175,000 75,000 Customer D ...... 0.75% ...... 562,500 0.75% ...... 562,500 0
Total ...... 4.80% ...... 3,600,000 4.88% ...... 3,660,000 60,000
BR Customers ...... Contractual % ...... 71,400,000 Contractual % ...... 71,340,000 (60,000)
Total PRR (Year 1) ...... 75,000,000 Total PRR ...... 75,000,000 0
In addition, Western is adopting a shown in the example below. As shown Beginning in Year 3, the PRR, as true-up methodology for FP Customers in the example in Table 1, the total PRR published on October 1, is $73,000,000. each year in order to ensure FP for Year 1, on October 1, is $75 million, Based on the true-up methodology, the Customers pay their proportionate share and estimated revenue requirements are adjustment (difference seen in Table 1) of the PRR. The FP percentage true-up allocated to customers based on their from Year 1 is factored in the PRR for calculation will use actual data for the estimated FP and BR percentages. A Year 3, and payment obligations for FY being adjusted. Changes to the PRR true-up of each FP percentage for Year both FP and BR Customers are based on FP percentage true-up 1 occurs in Year 2 and the difference appropriately adjusted as shown in the calculations will be incorporated in the between the estimated and actual will Table 2 below. PRR at the beginning of each FY as be reflected in the PRR in Year 3.
TABLE 2—FP % ADJUSTMENT FROM YEAR 1 (ACTUAL TO ESTIMATED) APPLIED IN YEAR 3
PY FP true-up FP customer Year 3 est. FP % Year 3 estimated (year 1 true-up Total year 3 bill PRR payment amount)
Customer A ...... 0.35% ...... $255,500 $22,500 $278,000 Customer B ...... 0.90% ...... 657,000 (37,500) 619,500 Customer C ...... 2.85% ...... 2,080,500 75,000 2,155,500 Customer D ...... 0.77% ...... 562,100 0 562,100
Total ...... 4.87% ...... 3,555,100 60,000 3,615,100
BR Customers ...... Contractual % ...... 69,444,900 (60,000) 69,384,900
Total PRR (Year 3) ...... 73,000,000 0 73,000,000
Based on the true-up adjustment from the maximum percentage and make Below is a sample calculation for an Year 1, the adjusted PRR for Year 3 is adjustments as appropriate. FP customer’s monthly charge for appropriately allocated to both FP and power. BR Customers. FP ACTUAL MAXIMUM PERCENTAGES The percentages in the table below are EFFECTIVE RATE PERIOD FY 2012 EXAMPLE: FP MONTHLY CUSTOMER the maximum percentages for each FP THROUGH FY 2016 CHARGE CALCULATION customer that will be applied to the MRR during the rate period October 1, Maximum FP Numerator: customer 2011, through September 30, 2016. The FP Customer’s Load— FP customer percentage MWh ...... 10,000 maximum percentages were determined applied to the Denominator: MRR percent based on a critically dry year where Washoe Generation— there are hydrologic conditions that MWh ...... 2,500 Sierra Conservation Cen- result in low CVP generation and, ter ...... 1.58 CVP Generation—MWh .... 3,700,000 consequently, low levels of BR. An FP Calaveras Public Power PU Load—MWh ...... (1,200,000) percentage cannot exceed the maximum Agency ...... 3.81 PU Purchase—MWh ...... 47,000 except in instances where individual FP Trinity Public Utilities Dis- Calculated Percentage: customer percentages increase due to trict ...... 12.01 FP Customer’s Percentage 0.39% load growth. If these maximum Tuolumne Public Power Agency ...... 3.16 Monthly Power Revenue Re- percentages are used for determining the quirement (MRR) ...... $3,333,333 FP customer charges for more than one Total ...... 20.56 year, Western will evaluate customer FP Customer Monthly percentages from the formula rate versus Charge = (FP % x MRR) .. $13,000
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00023 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56928 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
Component 2: Any charges or credits this service will be passed through the FP formula rate, the remainder of associated with the creation, directly to the relevant customer in the the annual PRR is recovered from the termination, or modification to any same manner Western is charged or BR Customers. BR Customers’ allocation tariff, contract, or rate schedule credited to the extent possible. If the will also be adjusted by the amount of accepted or approved by the Federal HBA’s costs or credits cannot be passed under- or overpayment by FP Energy Regulatory Commission (FERC) through to the relevant customer in the Customers. The BR RR will be collected or other regulatory bodies will be passed same manner Western is charged or in two 6-month periods. For October on to each relevant customer. The credited, the charges or credits will be through March, 25 percent of the BR RR FERC’s or other regulatory bodies’ passed through using Component 1 of will be collected. For April through accepted or approved charges or credits the formula rate. September, 75 percent of the BR RR will apply to the service to which this rate BR Formula Rate: The annual BR be collected. The monthly BR RR is methodology applies. When possible, allocation is equal to the annual PRR calculated by dividing the BR 6-month Western will pass through directly to less the annual FP customer allocation. RR by six. The revenues from the sale the relevant customer FERC’s or other The formula rate for BR has three of surplus BR will be applied to the regulatory bodies’ accepted or approved components. annual BR RR for the following FY. charges or credits in the same manner Component 1: An example of a reallocation program Western is charged or credited. If × BR Customer Allocation = (BR RR is the HE program. BR Customers pay FERC’s or other regulatory bodies’ BR%) for exchange energy, hourly or accepted or approved charges or credits Where: seasonally, by adjusting the BR cannot be passed through directly to the BR RR = BR Monthly Revenue Requirement relevant customer in the same manner (RR) percentage that is applied to the BR RR. Western is charged or credited, the BR% = BR percentage for each customer as Adjustments to a customer’s BR charges or credits will be passed indicated in the BR contract after percentage for seasonal exchanges will through using Component 1 of the adjustments for programs, such as HE, if be reflected in the customer’s BR applicable. formula rate. contract. Component 3: Any charges or credits After the FP Customers’ share of the An illustration of the adjustment to a from the Host Balancing Authority annual PRR has been determined, customer’s BR percentage for HE energy (HBA) applied to Western for providing including a prior period true-up from is shown in the example below.
EXAMPLE OF BR PERCENTAGE ADJUSTMENTS FOR HE ENERGY
BR % from Hourly BR = Customer’s Customers BR delivered BR Customer contract 30 MWh BR > load receiving HE (adj’d for HE) Revised BR %
Customer A ...... 20% 6 3 0 3 10.0% Customer B ...... 10% 3 0 1 4 13.3% Customer C ...... 70% 21 0 2 23 76.7%
Total ...... 100% 30 3 3 30 100.0%
Component 2: Any charges or credits is charged or credited to the extent Rate Schedule CPP–2 associated with the creation, possible. If the HBA’s costs or credits (Supersedes Schedule CPP–1) termination, or modification to any cannot be passed through to the relevant tariff, contract, or rate schedule customer in the same manner Western Central Valley Project accepted or approved by FERC or other is charged or credited, the charges or Schedule of Rates for Custom Product regulatory bodies will be passed on to credits will be passed through using Power each relevant customer. The FERC’s or Component 1 of the formula rate. other regulatory bodies’ accepted or Effective: October 1, 2011, through Billing: Billing for BR and FP power approved charges or credits apply to the September 30, 2016. will occur monthly using the respective service to which this rate methodology Available: Within the marketing area formula rate. Any adjustment made at applies. When possible, Western will served by the Western Area Power pass through directly to the relevant midyear is applicable to the entire FY Administration (Western), Sierra customer FERC’s or other regulatory and billed over the remainder the FY. Nevada Customer Service Region. Applicable: To customers that bodies’ accepted or approved charges or Adjustment for Losses: Losses will be contract with Western for Custom credits in the same manner Western is accounted for under this rate schedule Product Power (CPP). charged or credited. If FERC’s or other as stated in the service agreement. To Variable Resources (VR) Customers regulatory bodies’ accepted or approved Adjustment for Audit Adjustments: requesting scheduling for this service. charges or credits cannot be passed Financial audit adjustments that apply VR Customers will pay a scheduling through directly to the relevant to the formula rate under this rate charge to recover Western’s cost for customer in the same manner Western schedule will be evaluated on a case-by- scheduling VR CPP service. is charged or credited, the charges or case basis to determine the appropriate Character and Conditions of Service: credits will be passed through using treatment for repayment and cash flow Alternating current, 60-hertz, three- Component 1 of the formula rate. management. phase, delivered and metered at the Component 3: Any charges or credits voltages and points established by from the HBA applied to Western for contract, in accordance with approved providing this service will be passed policies and procedures. through directly to the relevant Formula Rate: The formula rate for customer in the same manner Western CPP includes three components:
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00024 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56929
Component 1: The customer will pay customer(s) for whom Western has The table below illustrates the pass all costs incurred in the provision of made the purchase. The CPP funded through of the CPP costs to each CPP. These costs will be passed through through appropriations, Federal customer and the treatment of proceeds to the customer. The methodology used reimbursable, or use of receipts from the sale of surplus CPP funded to calculate the amount of the pass authority that is surplus to the load through appropriations, Federal through will be based on the type of requirements of the customer(s) will be reimbursable, or use of receipts funding used to purchase the CPP. The sold. Proceeds from the sale of surplus authority. As shown below, customers CPP includes, but is not limited to, CPP funded through use of receipts, A, B, and C are responsible for paying supplemental power and Base Resource Federal reimbursable, or appropriations the full costs of the CPP purchase made (BR) firming power. If in the event authority will be applied to the CPP by Western (total CPP revenue customer advance funding is used to purchase cost for the customer(s) to the requirement (RR) is $780). The CPP RR purchase CPP, then allocation of surplus CPP sales will be determined based on extent possible. If the cost of the CPP is of $780 is reduced by the sale of 1 customer’s account status. fully recovered and proceeds remain megawatthour (MWh) at $45, which If the CPP is funded through from the sale of surplus CPP, the reduces the CPP RR to $735. Therefore, appropriations, Federal reimbursable, or remaining proceeds will be used to the reduced CPP RR of $735 is prorated use of receipts authority, the cost of the reduce the Power Revenue Requirement to each customer based on the amount CPP is passed through to the (PRR). of CPP purchased on their behalf.
EXAMPLE: CPP COST RECOVERY WITH PROCEEDS FROM SALES OF SURPLUS CPP USE OF RECEIPTS, FEDERAL REIMBURSABLE, OR APPROPRIATIONS AUTHORITY
If Western made a CPP purchase of 13 MW for the hour @ $60/MWh = $780 CPP Proceeds from Purchased CPP USED CPP Surplus CPP excess CPP CPP customer (MWh) (MWh) costs sold sales charges
Customer A...... 5 5 ...... 0 ...... $283 Customer B...... 4 4 ...... 0 ...... 226 Customer C...... 4 3 ...... 1 ...... 226
Total ...... 13 12 $780 1 $45 735
NOTES: 1. Western sold 1 MWh of CPP at $45/MWh = $45. 2. Proceeds from the sale of surplus CPP reduce the CPP costs prorated based on the amount of CPP purchased.
Effective October 1, 2011, Western Western for this type of service through apply the $37.91 per schedule charge to will charge $37.91 per schedule per day other agreements. If the actual number the estimated number of schedules. to cover its administrative costs for of schedules for the month is not The table below depicts the VR procuring and scheduling CPP if the available, Western will estimate the scheduling charge per schedule for the customer has not contracted with number of schedules for the month and effective rate period.
VR SCHEDULING CHARGE (PER SCHEDULE) EFFECTIVE RATE FY 2012 THROUGH FY 2016
FY 2012 2013 2014 2015 2016
VR Scheduling Charge Per Schedule ...... $37.91 $39.04 $40.21 $41.42 $42.66
Component 2: Any charges or credits cannot be passed through directly to the Billing: Billing for CPP and VR associated with the creation, relevant customer in the same manner scheduling charge occurs monthly using termination, or modification to any Western is charged or credited, the the formula rate. tariff, contract, or rate schedule charges or credits will be passed Adjustments for Losses: All losses accepted or approved by the Federal through using Component 1 of the incurred for delivery of CPP under this Energy Regulatory Commission (FERC) formula rate. rate schedule shall be the responsibility or other regulatory bodies will be passed Component 3: Any charges or credits of the customer that has contracted for on to each relevant customer. The from the Host Balancing Authority this service. FERC’s or other regulatory bodies’ (HBA) applied to Western for providing Adjustment for Audit Adjustments: accepted or approved charges or credits this service will be passed through Financial audit adjustments that apply apply to the service to which this rate directly to the relevant customer in the to the formula rate under this rate methodology applies. When possible, same manner Western is charged or schedule will be evaluated on a case-by- Western will pass through directly to credited to the extent possible. If the case basis to determine the appropriate the relevant customer FERC’s or other HBA’s costs or credits cannot be passed treatment for repayment and cash flow regulatory bodies’ accepted or approved through to the relevant customer in the charges or credits in the same manner same manner Western is charged or management. Western is charged or credited. If credited, the charges or credits will be FERC’s or other regulatory bodies’ passed through using Component 1 of accepted or approved charges or credits the formula rate.
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00025 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56930 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
Rate Schedule CV–T3 Administration (Western), Sierra losses, and delivered to points of (Supersedes Schedules CV–T2) Nevada Customer Service Region. delivery. This service includes Applicable: To customers receiving scheduling and system control and Central Valley Project Central Valley Project (CVP) firm and/or dispatch service needed to support the non-firm Point-to-Point (PTP) Schedule of Rate for Point-to-Point transmission service. transmission service. Transmission Service Character and Conditions of Service: Formula Rate: The formula rate for Effective: October 1, 2011, through Transmission service for three-phase, CVP firm and non-firm PTP September 30, 2016. alternating current at 60-hertz, delivered transmission includes three Available: Within the marketing area and metered at the voltages and points components: served by the Western Area Power of delivery or receipt, adjusted for Component 1:
Where: through using Component 1 of the Character and Conditions of Service: CVP TRR = TRR is the cost associated with formula rate. Transmission service for three-phase, facilities that support the transfer Component 3: Any charges or credits alternating current at 60-hertz, delivered capability of the CVP transmission from the Host Balancing Authority and metered at the voltages and points system excluding generation facilities (HBA) applied to Western for providing of delivery or receipt, adjusted for and radial lines. this service will be passed through losses, and delivered to points of TTc = The TTc is the total transmission directly to the relevant customer in the capacity under a long-term contract delivery. This service includes between Western and other parties. same manner Western is charged or scheduling and system control and NITSc = The NITSc is the 12-month average credited to the extent possible. If the dispatch service needed to support the coincident peaks of Network Integrated HBA’s costs or credits cannot be passed transmission service. Transmission Service (NITS) customers through to the relevant customer in the Formula Rate: The formula rate for at the time of the monthly CVP same manner Western is charged or CVP NITS includes three components: transmission system peak. For rate credited, the charges or credits will be Component 1: The NITS revenue design purposes, Western’s use of the passed through using Component 1 of requirement equals the CVP transmission system to meet its statutory the formula rate. transmission revenue requirement (TRR) obligations is treated as NITS. Billing: The formula rate above less the CVP firm point-to-point Western may revise the rate from applies to the maximum amount of revenue. Each NITS customer’s Component 1 based on either of the capacity reserved for periods ranging allocation is based on the following following conditions: (1) Updated from 1 hour to 1 month, payable formula: financial data available in March of each whether used or not. Billing will occur NITS customer’s monthly demand year; or (2) a change in the numerator monthly. charge = NITS customer’s load ratio or denominator that results in a rate Adjustment for Losses: Losses share × 1/12 of the Annual Network change of at least $0.05 per kilowatt incurred for service under this rate TRR. month (kW month). Rate change schedule will be accounted for as agreed Where: notifications will be posted on to by the parties in accordance with the NITS customer’s load ratio share = The NITS Western’s Open Access Same-Time service agreements. customer’s load, hourly, or in accordance Information System. Adjustment for Audit Adjustments: with approved policies or procedures, Component 2: Any charges or credits Financial audit adjustments that apply (including behind the meter generation minus the NITS customer’s adjusted associated with the creation, to the formula rate under this rate schedule will be evaluated on a case-by- Base Resource) coincident with the termination, or modification to any monthly CVP transmission system peak, tariff, contract, or rate schedule case basis to determine the appropriate averaged over a 12-month rolling period, accepted or approved by the Federal treatment for repayment and cash flow expressed as a ratio. Energy Regulatory Commission (FERC) management. Annual Network TRR = The total CVP TRR or other regulatory bodies will be passed Rate Schedule CV–NWT5 less revenue from long-term contracts for on to each relevant customer. The the CVP transmission between Western FERC’s or other regulatory bodies’ (Supersedes Schedule CV–NWT4) and other parties. accepted or approved charges or credits Central Valley Project The Annual Network TRR will be apply to the service to which this rate revised when the formula rate from methodology applies. When possible, Schedule of Rate for Network Component 1 of the CVP Transmission Western will pass through directly to Integration Transmission Service Rate under Rates Schedule CV–T3 is the relevant customer FERC’s or other Effective: October 1, 2011, through revised. regulatory bodies’ accepted or approved September 30, 2016. Component 2: Any charges or credits charges or credits in the same manner Available: Within the marketing area associated with the creation, Western is charged or credited. If served by the Western Area Power termination, or modification to any FERC’s or other regulatory bodies’ Administration (Western), Sierra tariff, contract, or rate schedule accepted or approved charges or credits Nevada Customer Service Region. accepted or approved by the Federal cannot be passed through directly to the Applicable: To customers receiving Energy Regulatory Commission (FERC) relevant customer in the same manner Central Valley Project (CVP) Network or other regulatory bodies will be passed Western is charged or credited, the Integration Transmission Service on to each relevant customer. The charges or credits will be passed (NITS). FERC’s or other regulatory bodies’
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00026 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.012 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56931
accepted or approved charges or credits credited, the charges or credits will be Available: Within the marketing area apply to the service to which this rate passed through using Component 1 of served by the Western Area Power methodology applies. When possible, the formula rate. Administration (Western), Sierra Western will pass through directly to Billing: NITS will be billed monthly Nevada Customer Service Region. the relevant customer FERC’s or other under the formula rate. Applicable: To customers receiving regulatory bodies’ accepted or approved Adjustment for Losses: Losses California-Oregon Transmission Project charges or credits in the same manner incurred for service under this rate Western is charged or credited. If schedule will be accounted for as agreed (COTP) firm and/or non-firm point-to- FERC’s or other regulatory bodies’ to by the parties in accordance with the point (PTP) transmission service. accepted or approved charges or credits service agreement. Character and Conditions of Service: cannot be passed through directly to the Adjustment for Audit Adjustments: Transmission service for three-phase, relevant customer in the same manner Financial audit adjustments that apply alternating current at 60-hertz, delivered Western is charged or credited, the to the formula rate under this rate and metered at the voltages and points charges or credits will be passed schedule will be evaluated on a case-by- of delivery or receipt, adjusted for through using Component 1 of the case basis to determine the appropriate losses, and delivered to points of formula rate. treatment for repayment and cash flow delivery. This service includes management. Component 3: Any charges or credits scheduling and system control and from the Host Balancing Authority Rate Schedule COTP–T3 dispatch service needed to support the (HBA) applied to Western for providing transmission service. this service will be passed through (Supersedes Schedule COTP–T2) Formula Rate: The formula rate for directly to the relevant customer in the California-Oregon Transmission Project same manner Western is charged or COTP firm and non-firm PTP credited to the extent possible. If the Schedule of Rate for Point-to-Point transmission service includes three HBA’s costs or credits cannot be passed Transmission Service components: through to the relevant customer in the Effective: October 1, 2011, through Component 1: same manner Western is charged or September 30, 2016.
Where: Western is charged or credited. If schedule will be evaluated on a case-by- COTP TRR = COTP Seasonal TRR (Western’s FERC’s or other regulatory bodies’ case basis to determine the appropriate costs associated with facilities that accepted or approved charges or credits treatment for repayment and cash flow support the transfer capability of the cannot be passed through directly to the management. COTP). relevant customer in the same manner Rate Schedule PACI–T3 Western’s COTP Seasonal Capacity = Western is charged or credited, the Western’s share of COTP capacity (Supersedes Schedule PACI–T2) (subject to curtailment) under the current charges or credits will be passed California-Oregon Intertie (COI) transfer through using Component 1 of the Pacific Alternating Current Intertie capability for the season. The three formula rate. Project seasons are defined as follows: Component 3: Any charges or credits Summer—June through October; from the Host Balancing Authority Schedule of Rate For Point-to-Point Winter—November through March; and (HBA) applied to Western for providing Transmission Service Spring—April through May. this service will be passed through Effective: October 1, 2011, through Western will update the rate from directly to the relevant customer in the September 30, 2016. Component 1 for COTP firm and non- same manner Western is charged or Available: Within the marketing area firm PTP transmission service at least 15 credited to the extent possible. If the served by the Western Area Power days before the start of each COI rating HBA’s costs or credits cannot be passed Administration (Western), Sierra season. Rate change notifications will be through to the relevant customer in the Nevada Customer Service Region (SNR). posted on Western’s Open Access Same- same manner Western is charged or Applicable: To customers receiving Time Information System Web site. credited, the charges or credits will be Pacific Alternating Current Intertie Component 2: Any charges or credits passed through using Component 1 of (PACI) firm and/or non-firm point-to- associated with the creation, the formula rate. point transmission service. termination, or modification to any Billing: The formula rate above Character and Conditions of Service: tariff, contract, or rate schedule applies to the maximum amount of Transmission service for three-phase, accepted or approved by the Federal capacity reserved for periods ranging alternating current at 60-hertz, delivered Energy Regulatory Commission (FERC) from 1 hour to 1 month, payable and metered at the voltages and points or other regulatory bodies will be passed whether used or not. Billing will occur of delivery or receipt, adjusted for on to each relevant customer. The monthly. losses, and delivered to points of FERC’s or other regulatory bodies’ Adjustment for Losses: Losses delivery. This service includes accepted or approved charges or credits incurred for service under this rate scheduling and system control and apply to the service to which this rate schedule will be accounted for as agreed dispatch service needed to support the methodology applies. When possible, to by the parties in accordance with the transmission service. Western will pass through directly to service agreement. Formula Rate: The formula rate for the relevant customer FERC’s or other Adjustment for Audit Adjustments: PACI firm and non-firm transmission regulatory bodies’ accepted or approved Financial audit adjustments that apply includes three components: charges or credits in the same manner to the formula rate under this rate Component 1:
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00027 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.013 56932 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
Where: Adjustment for Losses: Losses FERC’s or other regulatory bodies’ PACI TRR = PACI Seasonal TRR includes incurred for service under this rate accepted or approved charges or credits Western’s costs associated with facilities schedule will be accounted for as agreed cannot be passed through directly to the that support the transfer capability of the to by the parties in accordance with the relevant customer in the same manner PACI. service agreement. Western is charged or credited, the Western’s PACI Seasonal Capacity = Adjustment for Audit Adjustments: charges or credits will be passed Western’s share of PACI capacity (subject Financial audit adjustments that apply through using Component 1 of the to curtailment) under the current California-Oregon Intertie (COI) transfer to the formula rate under this rate formula rate. capability for the season. The three schedule will be evaluated on a case-by- Component 3: Any charges or credits seasons are defined as follows: case basis to determine the appropriate from the Host Balancing Authority Summer—June through October; treatment for repayment and cash flow (HBA) applied to Western for providing Winter—November through March; and management. this service will be passed through Spring—April through May. directly to the relevant customer in the Rate Schedule CV–TPT7 same manner Western is charged or Western will update the rate resulting (Supersedes Schedule CV–TPT6) credited to the extent possible. If the from Component 1 at least 15 days HBA’s costs or credits cannot be passed before the start of each COI rating Central Valley Project through to the relevant customer in the season. Rate change notifications will be Schedule of Rate for Transmission of same manner Western is charged or posted on Western’s Open Access Same Western Power by Others credited, the charges or credits will be Time Information System. passed through using Component 1 of Component 2: Any charges or credits Effective: October 1, 2011, through September 30, 2016. the formula rate. associated with the creation, Billing: Third-party transmission will Available: Within the marketing area termination, or modification to any be billed monthly under the formula served by the Western Area Power tariff, contract, or rate schedule rate. accepted or approved by the Federal Administration (Western), Sierra Adjustments for losses: All losses Energy Regulatory Commission (FERC) Nevada Customer Service Region. incurred for delivery of power under Applicable: To Western’s power or other regulatory bodies will be passed this rate schedule will be the service customers who require on to each relevant customer. The responsibility of the customer that transmission service by a third party to FERC’s or other regulatory bodies’ received the power. receive power sold by Western. accepted or approved charges or credits Adjustment for Audit Adjustments: Character and Conditions of Service: apply to the service to which this rate Financial audit adjustments that apply Transmission service for three-phase, methodology applies. When possible, to the formula rate under this rate alternating current at 60-hertz, delivered Western will pass through directly to schedule will be evaluated on a case-by- and metered at the voltages and points the relevant customer FERC’s or other case basis to determine the appropriate of delivery or receipt, adjusted for regulatory bodies’ accepted or approved treatment for repayment and cash flow losses, and delivered to points as agreed charges or credits in the same manner management. to by the parties. Western is charged or credited. If Formula Rate: The formula rate for New Rate Schedule CV–UUP1 FERC’s or other regulatory bodies’ transmission of Western’s power by Central Valley Project accepted or approved charges or credits others includes three components. cannot be passed through directly to the Component 1: When Western uses Schedule of Rate for Unreserved Use relevant customer in the same manner transmission facilities other than its Penalties Western is charged or credited, the own in supplying Western power and Effective: October 1, 2011, through charges or credits will be passed costs are incurred by Western for the through using Component 1 of the September 30, 2016. use of such facilities, the customer will Available: Within the marketing area formula rate. pay all costs, including transmission served by the Western Area Power Component 3: Any charges or credits losses, incurred in the delivery of such Administration (Western), Sierra from the Host Balancing Authority power. Nevada Customer Service Region (SNR). (HBA) applied to Western for providing Component 2: Any charges or credits Applicable: Western added this this service will be passed through associated with the creation, penalty rate for unreserved use of directly to the relevant customer in the termination, or modification to any transmission service for the Central same manner Western is charged or tariff, contract, or rate schedule Valley Project, California-Oregon credited to the extent possible. If the accepted or approved by the Federal Transmission Project, and Pacific HBA’s costs or credits cannot be passed Energy Regulatory Commission (FERC) Alternating Current Intertie effective through to the relevant customer in the or other regulatory bodies will be passed October 1, 2011. This penalty is same manner Western is charged or on to each relevant customer. The applicable to point-to-point (PTP) credited, the charges or credits will be FERC’s or other regulatory bodies’ transmission customers using passed through using Component 1 of accepted or approved charges or credits transmission not reserved or in excess of the formula rate. apply to the service to which this rate reservation or network customers when Billing: The formula rate above methodology applies. When possible, they schedule delivery of off-system applies to the maximum amount of Western will pass through directly to non-designated purchases using capacity reserved for periods ranging the relevant customer FERC’s or other transmission capacity reserved for from 1 hour to 1 month, payable regulatory bodies’ accepted or approved designated network resources. whether used or not. Billing will occur charges or credits in the same manner Character and Conditions of Service: monthly. Western is charged or credited. If Transmission service for three-phase,
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00028 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.014 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56933
alternating current at 60-hertz, delivered The UUP collected over and above the Character and Conditions of Service: and metered at the voltages and points base PTP rate will be distributed to Spinning reserve service supplies of delivery or receipt, adjusted for customers as a credit on future capacity that is available immediately to losses, and delivered to points of transmission revenue requirements. serve load and is synchronized with the delivery. This service includes Component 2: Any charges or credits power system. scheduling and system control and associated with the creation, Formula Rate: The formula rate for dispatch service needed to support the termination, or modification to any spinning reserve includes three transmission service. tariff, contract, or rate schedule components: Penalty Rate: The formula rate for accepted or approved by the Federal Component 1: The formula rate for Unreserved Use Penalty (UPP) has three Energy Regulatory Commission (FERC) spinning reserve service is the price components. or other regulatory bodies will be passed consistent with the California Component 1: The UUP service is on to each relevant customer. The Independent System Operator’s market provided when a transmission customer FERC’s or other regulatory bodies’ plus all costs incurred as a result of the uses transmission service that it has not accepted or approved charges or credits sale of spinning reserves, such as reserved or uses transmission service in apply to the service to which this rate Western’s scheduling costs. excess of its reserved capacity. A methodology applies. When possible, For customers that have a contractual transmission customer that has not Western will pass through directly to obligation to provide spinning reserve to reserved capacity or exceeds its firm or the relevant customer FERC’s or other Western and do not fulfill that non-firm reserved capacity at any point regulatory bodies’ accepted or approved obligation, the penalty for non- of receipt or any point of delivery will charges or credits in the same manner performance is the greater of 150 be assessed UUP. Western is charged or credited. If percent of Western’s actual cost or 150 The penalty charge for a transmission FERC’s or other regulatory bodies’ percent of the market price. customer who engages in unreserved accepted or approved charges or credits Component 2: Any charges or credits use is 200 percent of Western’s cannot be passed through directly to the associated with the creation, approved transmission service rate for relevant customer in the same manner termination, or modification to any PTP transmission service assessed as Western is charged or credited, the tariff, contract, or rate schedule charges or credits will be passed follows: (1) The UUP for a single hour accepted or approved by the Federal through using Component 1 of the of unreserved use will be based upon Energy Regulatory Commission (FERC) penalty rate. or other regulatory bodies will be passed the rate for daily firm PTP service; (2) Component 3: Any charges or credits the UUP for more than one assessment from the HBA applied to Western for on to each relevant customer. The for a given duration (e.g., daily) will providing this service will be passed FERC’s or other regulatory bodies’ increase to the next longest duration through directly to the relevant accepted or approved charges or credits (weekly); and (3) the UUP for multiple customer in the same manner Western apply to the service to which this rate instances of unreserved use (e.g., more is charged or credited to the extent methodology applies. When possible, than 1 hour) within a day will be based possible. If the HBA’s costs or credits Western will pass through directly to on the rate for daily firm PTP service. cannot be passed through to the relevant the relevant customer FERC’s or other The penalty charge for multiple customer in the same manner Western regulatory bodies’ accepted or approved instances of unreserved use isolated to is charged or credited, the charges or charges or credits in the same manner one-calendar week would result in a credits will be passed through using Western is charged or credited. If penalty based on the charge for weekly Component 1 of the penalty rate. FERC’s or other regulatory bodies’ firm PTP service. The penalty charge for Billing: The UUP will be billed accepted or approved charges or credits multiple instances of unreserved use monthly under the formula rate. cannot be passed through directly to the during more than one week within a Adjustments for losses: All losses relevant customer in the same manner calendar month is based on the charge incurred for delivery of power under Western is charged or credited, the for monthly firm PTP service. this rate schedule shall be the charges or credits will be passed The UUP will not apply to responsibility of the customer that through using Component 1 of the transmission customers utilizing PTP received the power. formula rate. transmission service under Western’s Adjustment for Audit Adjustments: Component 3: Any charges or credits Open Access Transmission Tariff Financial audit adjustments that apply from the Host Balancing Authority (OATT) as a result of action taken to to the formula rate will be evaluated on (HBA) applied to Western for providing support reliability. Such actions include a case-by-case basis to determine the this service will be passed through reserve activations or uncontrolled appropriate treatment for repayment directly to the relevant customer in the event response as directed by the and cash flow management. same manner Western is charged or responsible reliability authority such as credited to the extent possible. If the Rate Schedule CV–SPR4 Sub-Balancing Authority, Host HBA’s costs or credits cannot be passed Balancing Authority (HBA), Reliability (Supersedes Schedule CV–SPR3) through to the relevant customer in the Coordinator, or Transmission Operator. Central Valley Project same manner Western is charged or A transmission customer that exceeds credited, the charges or credits will be its firm or non-firm reserved capacity is Schedule of Rate for Spinning Reserve passed through using Component 1 of required to pay for all ancillary services Service the formula rate. identified in Western’s OATT associated Effective: October 1, 2011, through Billing: The formula rate above will be with the unreserved use of transmission September 30, 2016. applied to the amount of spinning service. The transmission customer or Available: Within the marketing area reserve sold. Billing will occur monthly. eligible customer will pay for ancillary served by the Western Area Power Adjustment for Audit Adjustments: services, in accordance with existing Administration (Western), Sierra Financial audit adjustments that apply rate schedules, based on the amount of Nevada Customer Service Region. to the formula rate under this rate transmission service it used but did not Applicable: To customers receiving schedule will be evaluated on a case-by- reserve. spinning reserve service. case basis to determine the appropriate
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00029 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56934 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
treatment for repayment and cash flow percent of Western’s actual cost or 150 passed through using Component 1 of management. percent of the market price. the formula rate. Billing: The formula rate above will be Rate Schedule CV–SUR4 Component 2: Any charges or credits associated with the creation, applied to the amount of supplemental (Supersedes Schedule CV–SUR3) termination, or modification to any reserve service sold. Billing will occur Central Valley Project tariff, contract, or rate schedule monthly. accepted or approved by the Federal Adjustment for Audit Adjustments: Schedule of Rate for Supplemental Energy Regulatory Commission (FERC) Financial audit adjustments that apply Reserve Service or other regulatory bodies will be passed to the formula rate under this rate schedule will be evaluated on a case-by- Effective: October 1, 2011, through on to each relevant customer. The case basis to determine the appropriate September 30, 2016. FERC’s or other regulatory bodies’ accepted or approved charges or credits treatment for repayment and cash flow Available: Within the marketing area apply to the service to which this rate management. served by the Western Area Power methodology applies. When possible, Administration (Western), Sierra Rate Schedule CV–RFS4 Western will pass through directly to Nevada Customer Service Region. the relevant customer FERC’s or other (Supersedes Schedule CV–RFS3) Applicable: To customers receiving regulatory bodies’ accepted or approved Central Valley Project supplemental reserve service. charges or credits in the same manner Character and Conditions of Service: Western is charged or credited. If Schedule of Rate for Regulation and Supplemental reserve service supplies FERC’s or other regulatory bodies’ Frequency Response Service capacity that is available within the first accepted or approved charges or credits Effective: October 1, 2011, through 10 minutes to take load and is cannot be passed through directly to the September 30, 2016. synchronized with the power system. relevant customer in the same manner Available: Within the marketing area Formula Rate: The formula rate for Western is charged or credited, the served by the Western Area Power supplemental reserve service includes charges or credits will be passed Administration (Western), Sierra three components: through using Component 1 of the Nevada Customer Service Region. Component 1: The formula rate for formula rate. Applicable: To customers receiving supplemental reserve service is the Component 3: Any charges or credits Regulation and Frequency Response price consistent with the California from the Host Balancing Authority Service (regulation). Independent System Operator’s market (HBA) applied to Western for providing Character and Conditions of Service: plus all costs incurred as a result of the this service will be passed through Regulation is necessary to provide for sale of supplemental reserves, such as directly to the relevant customer in the the continuous balancing of resources Western’s scheduling costs. same manner Western is charged or and interchange with load and for For customers that have a contractual credited to the extent possible. If the maintaining scheduled interconnection obligation to provide supplemental HBA’s costs or credits cannot be passed frequency at 60-cycles per second. reserve service to Western and do not through to the relevant customer in the Formula Rate: The formula rate for fulfill that obligation, the penalty for same manner Western is charged or regulation includes three components: non-performance is the greater of 150 credited, the charges or credits will be Component 1:
The annual revenue requirement results in a rate change of at least $0.25 charges or credits will be passed includes: (1) The Central Valley Project per kW month. through using Component 1 of the generation costs associated with Component 2: Any charges or credits formula rate. providing regulation, and (2) the non- associated with the creation, Component 3: Any charges or credits facility costs allocated to regulation. termination, or modification to any from the Host Balancing Authority The annual regulating capacity is one- tariff, contract, or rate schedule (HBA) applied to Western for providing half of the total regulating capacity accepted or approved by the Federal this service will be passed through bandwidths provided by Western under Energy Regulatory Commission (FERC) directly to the relevant customer in the the Interconnected Operations or other regulatory bodies will be passed same manner Western is charged or Agreements with Sub-Balancing on to each relevant customer. The credited to the extent possible. If the Authority (SBA) members. FERC’s or other regulatory bodies’ HBA’s costs or credits cannot be passed accepted or approved charges or credits through to the relevant customer in the The penalty for non-performance by apply to the service to which this rate same manner Western is charged or an SBA customer who has committed to methodology applies. When possible, credited, the charges or credits will be self-provision for their regulating Western will pass through directly to passed through using Component 1 of capacity requirement will be the greater the relevant customer FERC’s or other the formula rate. of 150 percent of Western’s actual costs regulatory bodies’ accepted or approved Billing: The formula rate above will be or 150 percent of the market price. charges or credits in the same manner applied to the regulating capacity Western will revise the formula rate Western is charged or credited. If bandwidth contained in the service resulting from Component 1 based on FERC’s or other regulatory bodies’ agreement. Billing will occur monthly. either of the following two conditions: accepted or approved charges or credits Adjustment for Audit Adjustments: (1) Updated financial data available in cannot be passed through directly to the Financial audit adjustments that apply March of each year; or (2) a change in relevant customer in the same manner to the formula rate under this rate the numerator or denominator that Western is charged or credited, the schedule will be evaluated on a case-by-
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00030 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 EN14SE11.015 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices 56935
case basis to determine the appropriate or other regulatory bodies will be passed agreement or Interconnected Operations treatment for repayment and cash flow on to each relevant customer. The Agreements. management. FERC’s or other regulatory bodies’ Formula Rate: The formula rate for accepted or approved charges or credits the GI has three components: Rate Schedule CV–EID4 apply to the service to which this rate Component 1: GI is applied to (Supersedes Schedule CV–EID3) methodology applies. When possible, deviations as follows: (1) For deviations within the bandwidth, there will be no Central Valley Project Western will pass through directly to the relevant customer FERC’s or other financial settlement, unless otherwise Schedule of Rate for Energy Imbalance regulatory bodies’ accepted or approved dictated by contract or policy; rather, GI Service charges or credits in the same manner will be tracked and settled with energy; (2) negative deviations (under-delivery), Effective: October 1, 2011, through Western is charged or credited. If outside the deviation bandwidth, will September 30, 2016. FERC’s or other regulatory bodies’ be charged the greater of 150 percent of Available: Within the marketing area accepted or approved charges or credits cannot be passed through directly to the the California Independent System served by the Western Area Power Operator market price or 150 percent of Administration (Western), Sierra relevant customer in the same manner Western is charged or credited, the Western’s actual cost; and (3) positive Nevada Customer Service Region. deviations (over-delivery), outside the Applicable: To customers receiving charges or credits will be passed through using Component 1 of the deviation bandwidth, will be lost to the Energy Imbalance (EI) service. system, except for any hour when Character and Conditions of Service: formula rate. Component 3: Any charges or credits Western incurs a cost to dispose of the EI is provided when a difference occurs energy, then that cost will be borne by between the scheduled and the actual from the HBA applied to Western for providing this service will be passed the responsible party. delivery of energy to a load within the Deviations that occur as a result of through directly to the relevant Sub-Balancing Authority (SBA) over an actions taken to support reliability will customer in the same manner Western hour or in accordance with approved be resolved in accordance with existing is charged or credited to the extent policies and procedures. The deviation, contractual requirements. Such actions possible. If the HBA’s costs or credits in megawatts, is the net scheduled include reserve activations or cannot be passed through to the relevant amount of energy minus the net metered uncontrolled event responses as customer in the same manner Western (actual delivered) amount. directed by the responsible reliability is charged or credited, the charges or EI service uses the deviation authority such as Sub-Balancing bandwidth that is established in the credits will be passed through using Authority, Host Balancing Authority service agreement or Interconnected Component 1 of the formula rate. (HBA), Reliability Coordinator, or Operations Agreements. Billing: Billing for negative deviations Transmission Operator. Formula Rate: The formula rate for EI outside the bandwidth, or as otherwise To the extent that an entity service includes three components: required, will occur monthly. incorporates intermittent resources, Component 1: EI service is applied to Adjustment for Audit Adjustments: deviations will be charged as follows: deviations as follows: (1) For deviations Financial audit adjustments that apply (1) For deviations within the within the bandwidth, there will be no to the formula rate under this rate bandwidth, there will be no financial financial settlement, unless otherwise schedule will be evaluated on a case-by- settlement, unless otherwise dictated by dictated by contract or policy; rather, EI case basis to determine the appropriate contract or policy; rather, GI will be will be tracked and settled with energy; treatment for repayment and cash flow tracked and settled with energy; (2) (2) negative deviations (under-delivery), management. negative deviations (under-delivery), outside the deviation bandwidth, will New Rate Schedule CV–GID1 outside the deviation bandwidth, will be charged the greater of 150 percent of be charged the greater of market price or the California Independent System Central Valley Project actual cost (no penalty); and (3) positive Operator market price or 150 percent of Schedule of Rate for Generator deviations (over-delivery), outside the Western’s actual cost; and (3) positive Imbalance Service deviation bandwidth, will be lost to the deviations (over-delivery), outside the system, except for any hour where deviation bandwidth, will be lost to the Effective: October 1, 2011, through Western incurs a cost, then that cost system, except for any hour when September 30, 2016. will be borne by the responsible party. Western incurs a cost to dispose of the Available: Within the marketing area Intermittent generators serving load energy, then that cost will be borne by served by the Western Area Power outside of SNR’s SBA will be required the responsible party. Administration (Western), Sierra to dynamically schedule or dynamically Deviations that occur as a result of Nevada Customer Service Region (SNR). meter their generation to another actions taken to support reliability will Applicable: To generators receiving Balancing Authority. An intermittent be resolved in accordance with existing Generator Imbalance Service (GI). resource, for the limited purpose of contractual requirements. Such actions Character and Conditions of Service: these rate schedules, is an electric include reserve activations or GI is provided when a difference occurs generator that is not dispatchable and uncontrolled event responses as between the scheduled and actual cannot store its output, and therefore, directed by the responsible reliability delivery of energy from an eligible cannot respond to changes in demand or authority such as SBA, Host Balancing generation resource within the Sub- respond to transmission security Authority (HBA), Reliability Balancing Authority (SBA), over an constraints. Coordinator, or Transmission Operator. hour, or in accordance with approved Component 2: Any charges or credits Component 2: Any charges or credits policies. The deviation in megawatts is associated with the creation, associated with the creation, the net scheduled amount of generation termination, or modification to any termination, or modification to any minus the net metered output from the tariff, contract, or rate schedule tariff, contract, or rate schedule generator’s (actual generation) amount. accepted or approved by the Federal accepted or approved by the Federal GI is subject to the deviation Energy Regulatory Commission (FERC) Energy Regulatory Commission (FERC) bandwidth established in the service or other regulatory bodies will be passed
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00031 Fmt 4701 Sfmt 4703 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2 56936 Federal Register / Vol. 76, No. 178 / Wednesday, September 14, 2011 / Notices
on to each relevant customer. The Western is charged or credited, the credits will be passed through using FERC’s or other regulatory bodies’ charges or credits will be passed Component 1 of the formula rate. accepted or approved charges or credits through using Component 1 of the Billing: Billing for negative deviations apply to the service to which this rate formula rate. outside the bandwidth will occur methodology applies. When possible, Component 3: Any charges or credits monthly. Western will pass through directly to from the HBA applied to Western for Adjustment for Audit Adjustments: the relevant customer FERC’s or other providing this service will be passed Financial audit adjustments that apply regulatory bodies’ accepted or approved through directly to the relevant to the formula rate under this rate charges or credits in the same manner customer in the same manner Western schedule will be evaluated on a case-by- Western is charged or credited. If is charged or credited to the extent case basis to determine the appropriate FERC’s or other regulatory bodies’ possible. If the HBA’s costs or credits treatment for repayment and cash flow accepted or approved charges or credits cannot be passed through to the relevant management. cannot be passed through directly to the customer in the same manner Western [FR Doc. 2011–23339 Filed 9–13–11; 8:45 am] relevant customer in the same manner is charged or credited, the charges or BILLING CODE 6450–01–P
VerDate Mar<15>2010 19:22 Sep 13, 2011 Jkt 223001 PO 00000 Frm 00032 Fmt 4701 Sfmt 9990 E:\FR\FM\14SEN2.SGM 14SEN2 emcdonald on DSK4SPTVN1PROD with NOTICES2