[Federal Register Volume 78, Number 63 (Tuesday, April 2, 2013)]
[Notices]
[Pages 19700-19705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07618]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Pacific Northwest-Pacific Southwest Intertie Project--Rate Order
No. WAPA-157
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Final Transmission Service Rates.
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SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate
Order No. WAPA-157 and Rate Schedules INT-FT5 and INT-NFT4, placing
firm and nonfirm transmission service rates for the Pacific Northwest-
Pacific Southwest Intertie Project (Intertie) of the Western Area Power
Administration (Western) into effect on an interim basis. The
provisional rates will be in effect until the Federal Energy Regulatory
Commission (FERC) confirms, approves, and places them into effect on a
final basis, or until they are replaced by other rates. The
[[Page 19701]]
provisional rates will provide sufficient revenue to pay all annual
costs, including interest expense, and repay required investment within
the allowable periods.
DATES: Rate Schedules INT-FT5 and INT-NFT4 are effective on the first
day of the first full billing period beginning on or after May 1, 2013.
FOR FURTHER INFORMATION CONTACT: Mr. Jack Murray, Rates Manager, Desert
Southwest Customer Service Regional Office, Western Area Power
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, (602) 605-2442,
email [email protected].
SUPPLEMENTARY INFORMATION: The previous Rate Schedules INT-FT4 and INT-
NFT3 for Rate Order No. WAPA-130, were approved by FERC for a 5-year
period through September 30, 2012.\1\ These Rate Schedules were
extended temporarily through September 30, 2013, under Rate Order No.
WAPA-159.\2\ Rate Schedules INT-FT4 and INT-NFT3 are being superseded
by Rate Schedules INT-FT5 and INT-NFT4. Under Rate Schedule INT-FT4,
the rate for firm point-to-point transmission service is $15.24 per
kilowatt year (kW-year). The provisional rate for firm point-to-point
transmission service under Rate Schedule INT-FT5 is $19.32/kW-year,
which represents an increase of 26.8 percent when compared with the
existing rate. Under Rate Schedule INT-NFT3, the rate for nonfirm
point-to-point transmission service is 1.74 mills per kilowatt hour
(mills/kWh). The provisional rate for nonfirm point-to-point
transmission service under Rate Schedule INT-NFT4 is 2.21 mills/kWh,
which represents an increase of 27 percent when compared with the
existing rate.
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\1\ Rate Order No. WAPA-130 was approved by FERC on a final
basis on March 18, 2008, in Docket No. EF08-5191-000 (122 FERC ]
62,236).
\2\ Rate Order No. WAPA-159 was approved by the Deputy Secretary
of Energy on August 27, 2012 (77 FR 54575; September 5, 2012), and
filed with FERC for informational purposes only.
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By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator, (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy, and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to FERC. Existing Department of Energy procedures
for public participation in power rate adjustments (10 CFR part 903)
were published on September 18, 1985.
Under Delegation Order Nos. 00-037.00 and 00-001.00D, and in
compliance with 10 CFR part 903 and 18 CFR part 300, I hereby confirm,
approve, and place Rate Order No. WAPA-157 and the proposed rates for
transmission service into effect on an interim basis. The new Rate
Schedules INT-FT5 and INT-NFT4 will be submitted promptly to FERC for
confirmation and approval on a final basis.
Dated: March 27, 2013.
Daniel B. Poneman,
Deputy Secretary of Energy.
In the matter of: Western Area Power Administration Rate
Adjustment for the Pacific Northwest-Pacific Southwest Intertie
Project.
Order Confirming, Approving, and Placing the Pacific Northwest-Pacific
Southwest Intertie Project Transmission Service Rates Into Effect on an
Interim Basis
These rates were established in accordance with section 302 of the
Department of Energy (DOE) Organization Act (42 U.S.C. 7152). This Act
transferred to and vested in the Secretary of Energy the power
marketing functions of the Secretary of the Department of the Interior
and the Bureau of Reclamation under the Reclamation Act of 1902 (ch.
1093, 32 Stat. 388), as amended and supplemented by subsequent laws,
particularly section 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and other Acts that specifically apply to the project
involved.
By Delegation Order No. 00-037.00, effective December 6, 2001, the
Secretary of Energy delegated: (1) The authority to develop power and
transmission rates to Western's Administrator, (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy, and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to the Federal Energy Regulatory Commission.
Existing DOE procedures for public participation in power rate
adjustments (10 CFR part 903) were published on September 18, 1985.
Acronyms and Definitions
As used in this Rate Order, the following acronyms and definitions
apply:
Administrator: Administrator for the Western Area Power
Administration.
Balancing Authority (BA): The responsible entity that integrates
resource plans ahead of time, maintains load-interchange-generation
balance within a designated area, and supports interconnection
frequency in real-time.
Capacity: The electric capability of a transformer, transmission
circuit, or other equipment, expressed in kilowatts (kW).
Customer: An entity with a contract or service agreement that
receives service from Western's Desert Southwest Region.
Deficits: Deferred or unrecovered annual expenses.
DOE: United States Department of Energy.
DOE Order RA 6120.2: A DOE order outlining power marketing
administration financial reporting and ratemaking procedures.
Desert Southwest Region: The Desert Southwest Customer Service
Region of Western.
FERC: Federal Energy Regulatory Commission.
Firm: A type of product and/or service that is available at the time
requested by the customer.
FRN: Federal Register notice.
Intertie: Pacific Northwest-Pacific Southwest Intertie Project.
Kilovolt (kV): Electrical unit of measure of potential difference
that equals 1,000 volts.
Kilowatt (kW): Electrical unit of capacity that equals 1,000 watts.
Kilowatt hour (kWh): Electrical unit of energy that equals 1,000
watts in 1 hour.
Kilowatt month (kW-month): Electrical unit of the monthly amount of
capacity.
Kilowatt year (kW-year): Electrical unit of the yearly amount of
capacity.
Mill: A monetary denomination of the United States that equals one
tenth of a cent or one thousandth of a dollar.
Mills per kilowatt hour (mills/kWh): A unit of charge.
NEPA: National Environmental Policy Act of 1969 (42 U.S.C. 4321, et
seq.).
Nonfirm: A type of product and/or service not always available at
the time requested by the customer.
Open Access Same Time Information System (OASIS): An electronic
posting system that a service provider maintains for transmission
access data that allows all customers to view information
simultaneously.
O&M: Operation and Maintenance.
Power Repayment Study (PRS): A study used to determine how much
revenue is needed to cover annual costs and future repayment
obligations.
Proposed Rate: A rate that has been recommended by Western to the
Deputy Secretary of Energy for approval.
Provisional Rate: A rate that has been confirmed, approved, and
placed into effect on an interim basis by the Deputy Secretary of
Energy.
PPW: Purchase Power and Wheeling.
Rate Brochure: A document prepared for public distribution
explaining the rationale and background for the rate proposal
contained in this rate order dated June 2012.
Reclamation: United States Department of Interior, Bureau of
Reclamation.
[[Page 19702]]
Western: Western Area Power Administration.
Effective Date
The new provisional rates will take effect on the first day of the
first full billing period beginning on or after May 1, 2013, and will
remain in effect through April 30, 2018, pending approval by FERC on a
final basis.
Public Notice and Comment
Western followed the Procedures for Public Participation in Power
and Transmission Rate Adjustments and Extensions, 10 CFR part 903, in
developing these rates. The steps Western took to involve interested
parties in the rate process were:
1. A FRN was published on June 11, 2012, (77 FR 34381) announcing
the proposed rates for transmission service, initiating a public
consultation and comment period, and setting forth the dates and
locations of public information and public comment forums.
2. On June 14, 2012, Western notified all Intertie customers and
interested parties of the rate adjustment and provided a copy of the
published FRN.
3. On June 28, 2012, Western held a public information forum in
Phoenix, Arizona. Western explained the proposed rates and potential
changes to the proposed rates, answered questions, and provided rate
brochures and presentation handouts.
4. On July 10, 2012, Western held a public comment forum in
Phoenix, Arizona, to give the public an opportunity to comment for the
record. Four individuals commented at this forum.
5. On August 14, 2012, Western received a data request for
information.
6. On August 31, 2012, Western provided the information requested
by sending a compact disc containing numerous electronic data files.
7. On September 10, 2012, Western received requests to extend the
90-day consultation and comment period to allow interested parties
sufficient time to analyze the information Western distributed on
August 31, 2012, and respond accordingly.
8. On September 19, 2012, Western's Acting Administrator extended
the consultation and comment period through October 8, 2012.
9. On September 20, 2012, Western notified all Intertie customers
and interested parties of the extension and provided a copy of the
notice from Western's Acting Administrator.
10. Western received three comment letters during the consultation
and comment period. All formally submitted comments have been
considered in preparing this Rate Order.
11. Western provided a Web site for information about this rate
adjustment process. The Web site is located at www.wapa.gov/dsw/pwrmkt/Intertie/RateAdjust.htm.
Comments
Representatives of the following organizations made oral comments:
Arizona Power Authority, Phoenix, Arizona; Arizona Municipal Power
Users' Association, Phoenix, Arizona; K.R. Saline & Associates, Mesa,
Arizona; and Irrigation & Electrical Districts Association of Arizona,
Phoenix, Arizona.
Written comments were received from the following organizations:
Arizona Municipal Power Users' Association, Phoenix, Arizona; Griffith
Energy LLC, Houston, Texas; and Irrigation & Electrical Districts
Association of Arizona, Phoenix, Arizona.
Project Description
The Intertie was authorized by Section 8 of the Pacific Northwest
Power Marketing Act of August 31, 1964 (16 U.S.C. 837g). The basic
purpose of the Intertie was to provide, through transmission system
interconnections among certain Federal and non-Federal power systems,
maximum use of power resources to meet growing demands. This purpose
was to be accomplished through the exchange of summer-winter surplus
peaking capacity between the northwest and southwest to reduce capital
expenditures for new generating capacity; the sale of northwest
secondary energy to the southwest; the sale of southwest energy to the
northwest to ``firm'' peaking hydroelectric sources during critical
water years; conservation of significant amounts of fuel through the
use of surplus hydroelectric energy; and increased efficiency in the
operation of hydroelectric and thermal resources. As authorized, the
Intertie was to be a cooperative construction venture by Federal and
non-Federal entities, incorporating the capability for alternating
current (AC) and direct current (DC) transmission service.
The Lower Colorado Region of Reclamation was assigned construction
jurisdiction for: (i) The Celilo-Mead 750-kV DC transmission line from
the Oregon-Nevada border to Mead Substation; (ii) Mead Substation; and
(iii) all facilities south of Mead Substation. Several delays in
construction funding for the Celilo-Mead 750-kV DC transmission line
revised its estimated in-service date to the point that potential users
withdrew their interest. This, and the subsequent lack of congressional
funding, resulted in the May 1969 indefinite postponement of the
Celilo-Mead 750-kV DC transmission line construction. The only
facilities constructed were Mead Substation and all facilities south of
Mead Substation, which provide AC transmission service. Pursuant to
section 302 of the Department of Energy Organization Act (42 U.S.C.
7152), dated August 4, 1977, these Reclamation constructed facilities
were transferred to Western.
Western's Desert Southwest Region administers these facilities as a
stand-alone transmission project for operational, financial, and
repayment purposes. The transmission facilities consist of a 256-mile,
500-kV transmission line from Mead Substation (Nevada) to Perkins
Substation (Arizona); a 202-mile, 500-kV transmission line from Mead
Substation to Adelanto Switching Substation (California); a 238-mile,
345-kV transmission line from Mead Substation to Liberty Substation
(Arizona); a 19-mile, 230-kV transmission line from Liberty Substation
to Westwing Substation (Arizona); and a 22-mile, 230-kV transmission
line from Westwing Substation to Pinnacle Peak Substation (Arizona).
Existing and Provisional Rates
The existing rates for point-to-point transmission service consist
of a firm rate and a nonfirm rate. The current rate for firm point-to-
point transmission service under Rate Schedule INT-FT4 is $15.24/kW-
year. The current rate for nonfirm point-to-point transmission service
under Rate Schedule INT-NFT3 is 1.74 mills/kWh. The existing rates
under Rate Schedules INT-FT4 and INT-NFT3 expire September 30, 2013.
The provisional rates will supersede the existing rates and become
effective on an interim basis on the first day of the first full
billing period beginning on or after May 1, 2013. The provisional rate
for firm point-to-point transmission service under Rate Schedule INT-
FT5 is $19.32/kW-year. The provisional rate for nonfirm point-to-point
transmission service under Rate Schedule INT-NFT4 is 2.21 mills/kWh.
The provisional rates will result in a rate increase of approximately
27 percent when compared to the existing rates. A comparison of the
existing and provisional rates for transmission service follows:
[[Page 19703]]
Comparison of Existing and Provisional RatesPacific Northwest--Pacific Southwest Intertie Project
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Provisional rates Change
Transmission service Existing rates (effective 5/1/13) (percent)
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Firm Point-to-Point...................... $15.24/kW-year............. $19.32/kW-year............. 26.8
Nonfirm Point-to-Point................... 1.74 mills/kWh............. 2.21 mills/kWh............. 27.0
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Certification of Rates
Western's Acting Administrator certified that the provisional rates
for transmission service under Rate Schedules INT-FT5 and INT-NFT4 are
the lowest possible rates consistent with sound business principles.
The provisional rates were developed following administrative policies
and applicable laws.
Transmission Rate Discussion
According to Reclamation Law, Western must establish rates
sufficient to recover annual O&M, purchase power, transmission service
and other costs, interest expense, and repay investments. Western
prepares a PRS each fiscal year to determine if the existing rates will
provide adequate revenues to repay all power system costs within the
required time. Repayment criteria are based on existing law and
applicable policies, including DOE Order RA 6120.2. To meet the cost
recovery criteria outlined in DOE Order RA 6120.2, a PRS using the
provisional rates has been developed to demonstrate that sufficient
revenues will be available to meet future obligations.
The existing rates are insufficient and do not provide adequate
revenues to cover costs. The revenue deficiency is a result of lower-
than-projected sales of transmission service. The existing rates were
based on projected sales of 500-kV transmission service increasing each
year during the 5-year cost evaluation period. The actual demand for
transmission capacity was significantly less than expected and the
projected sales did not materialize. As a result, the revenue derived
from the sales of 500-kV transmission service over the 5-year cost
evaluation period has been considerably lower than planned. The
provisional rates include a notable reduction in the sales forecast for
500-kV transmission service over the next 5-year cost evaluation
period, which is the primary factor that led to the rate increase.
A secondary factor of the rate increase is that when the existing
rates were established, purchase power was handled separately for each
power system and the Intertie, being a stand-alone transmission
project, had no purchase power costs to recover. Since then, Western's
BA for the Desert Southwest Region has initiated power purchases for
reliability purposes and the associated costs are allocated to all of
the applicable transmission projects within the BA, including the
Intertie. These annual purchase power costs are subject to recovery and
have been included in the provisional rates.
Another factor impacting the rate increase is the requirement to
pay off maturing debt associated with the original project. In 1970, a
major element of the original project was placed into commercial
service, which initiated the repayment cycle. This debt of $28.4
million must be paid by 2020, which is the last year this investment is
allowed to remain unpaid. Principal payments for this debt have been
included in the provisional rates.
Statement of Revenue and Related Expenses
The following table provides a summary of projected revenue and
expense data for the provisional rates through the 5-year approval
period.
Intertie Transmission Rates--Comparison of 5-Year Approval Period--Total
Revenues and Expenses
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Existing Provisional
rates rates Difference
($000) ($000) ($000)
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Total Revenues................... $172,149 $187,873 $15,724
Revenue Distribution
Expenses:
O&M...................... 34,337 38,090 3,753
Purchase Power........... 0 3,700 3,700
Transmission Service & 9,232 8,411 (821)
Other...................
Interest................. 91,105 92,206 1,101
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Total Expenses....... 134,674 142,407 7,733
Principal Payments:
Capitalized Deficits..... 34,188 30,092 (4,096)
Original Project and 3,177 15,019 11,842
Additions...............
Replacements............. 110 355 245
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Total Principal 37,475 45,466 7,991
Payments........
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Total Revenue 172,149 187,873 15,724
Distribution....
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Comments
The comments and responses regarding the proposed rates,
paraphrased for brevity when not affecting the meaning of the
statement(s), are discussed below. Direct quotes from comment letters
are used for clarification where necessary.
Comment: Western should either suspend or terminate the rate
adjustment until the next fiscal year since the existing rates have
been extended until September 30, 2013.
Response: The existing rates do not provide sufficient revenue to
cover all annual costs and repay outstanding debt within the allowable
time frame. Since
[[Page 19704]]
the existing rates were set to expire on September 30, 2012, a
temporary extension was requested so that Western could have additional
time to complete the rate adjustment process. The proposed rates will
supersede the existing rates when approved.
Comment: Customers wish to continue a dialogue with Western over
certain costs that have been included in the proposed rates.
Response: These costs are associated with the PPW program for
Western's BA in the Desert Southwest Region. Western is committed to
working with its customers to ensure the allocation of purchase power
costs is appropriate. An internal team is being formed to examine all
aspects of the PPW program, including required reserves, and will work
collaboratively with customers as additional information becomes
available.
Comment: Western should consider phasing in the proposed rate
increase over two or more years to lessen the negative impact on its
customers. Western should develop lower rates as an alternative to its
proposed rates.
Response: The proposed rates will provide adequate revenue to cover
debt payments that must be made by 2020. It would not be financially
prudent to delay the proposed rate increase. Such action would only
shorten the period of time available to accumulate sufficient revenue
and result in substantial rate increases until the outstanding debt is
paid.
Comment: Western should extend the 90-day consultation and comment
period to allow sufficient time to review and comment on the
information provided in the data request response dated August 31,
2012.
Response: Western's Acting Administrator extended the consultation
and comment period from September 10, 2012, to October 8, 2012. A copy
of the notice of extension was sent to all Intertie customers and
interested parties on September 20, 2012, and posted to Western's Web
site at www.wapa.gov/dsw/pwrmkt/Intertie/RateAdjust.htm and to
Western's OASIS at www.oatioasis.com/WALC/index.html.
Comment: Western should make available to all customers and
interested parties the information provided in a data request response
dated August 31, 2012.
Response: Concur. The information provided consisted of numerous
electronic data files that were originally sent on a compact disc.
Western posted a copy of these files to its Web site at www.wapa.gov/dsw/pwrmkt/Intertie/RateAdjust.htm on September 20, 2012.
Comment: Do the proposed rates include capitalized costs from the
use of prepayments?
Response: The proposed rates do not include any construction
projects that have been funded via prepayments. In addition, none of
the customer approved construction projects for prepayment funding
involve Intertie transmission facilities.
Comment: Has Western's Operations Consolidation Project or
Balancing Authority Consolidation resulted in any cost increases that
are included in the proposed rates?
Response: The proposed rates do not include any cost increases
associated with these consolidation activities and efforts. The factors
leading to the proposed rate increase are the continual shortfall in
sales of 500-kV transmission service, inclusion of purchased power
costs, and the required debt payments that must be made by FY 2020.
Comment: Does Western's BA in the Rocky Mountain Region have any
cost impact on the proposed rates?
Response: The proposed rates only include costs associated with
Western's BA in the Desert Southwest Region.
Comment: The proposed rate increase will cause prices for energy
delivered by customers using the Intertie to become uncompetitive with
other competing energy suppliers.
Response: Western acknowledges that the proposed rates represent a
significant increase for the Intertie customers. However, Western is
required to establish rates that are sufficient to recover annual costs
and repay investments to satisfy the cost recovery criteria outlined in
DOE Order RA 6120.2. The proposed rates are cost-based and do not
include a rate of return on capital investment. Western will continue
to explore methods to control costs and maintain stable transmission
service rates.
Availability of Information
All brochures, studies, comments, letters, memorandums, and other
documents that Western used to develop the provisional rates are
available for inspection and copying at the Desert Southwest Customer
Service Regional Office, Western Area Power Administration, 615 South
43rd Avenue, Phoenix, AZ 85009-5313. Many of these documents and
supporting information are available on Western's Web site at
www.wapa.gov/dsw/pwrmkt/Intertie/RateAdjust.htm.
Ratemaking Procedure Requirements
Environmental Compliance
In compliance with the NEPA of 1969 (42 U.S.C. 4321, et seq.);
Council on Environmental Quality Regulations for implementing NEPA (40
CFR parts 1500-1508); and DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021), Western has determined that this action
is categorically excluded from preparing an environmental assessment or
an environmental impact statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Submission to the Federal Energy Regulatory Commission
The provisional interim rates herein confirmed, approved, and
placed into effect, together with supporting documents, will be
submitted to FERC for confirmation and final approval.
Order
In view of the foregoing and under the authority delegated to me, I
confirm and approve on an interim basis, effective May 1, 2013, Rate
Schedules INT-FT5 and INT-NFT4 for the Pacific Northwest-Pacific
Southwest Intertie Project of the Western Area Power Administration.
The rate schedules shall remain in effect on an interim basis pending
FERC's confirmation and approval of them or substitute rates on a final
basis through April 30, 2018.
Dated: March 27, 2013,
Daniel B. Poneman,
Deputy Secretary of Energy.
Certification of Rates
Western Area Power Administration
Desert Southwest Customer Service Region
I certify that the rates under Rate Schedules INT-FT5 and INT-NFT4 for
the Pacific Northwest-Pacific Southwest Intertie Project were developed
following administrative policies and applicable laws and the rates are
the lowest possible, consistent with sound business principles.
Dated: February 13, 2013.
Anita J. Decker,
Acting Administrator.
Long-Term and Short-Term Firm Point-To-Point Transmission Service
Effective: The first day of the first full billing period beginning
on or after May 1, 2013, and will remain in effect through April 30,
2018, or until superseded by another rate schedule.
Applicable: To firm point-to-point transmission service customers
where
[[Page 19705]]
capacity and energy are supplied to the Pacific Northwest-Pacific
Southwest Intertie Project (Intertie) transmission system at points of
interconnection with other systems and transmitted and delivered, less
losses, to points of delivery on the Intertie transmission system.
Long-Term Rate: For transmission service of one year or longer, the
rate is $19.32 for each kilowatt (kW) per year, payable monthly at the
rate of $1.61 for each kW per month.
Short-Term Rates: For transmission service up to one year, the
maximum rate for each kW is as follows:
Monthly: $1.61
Weekly: $0.3715
Daily: $0.0529
Hourly: 2.21 mills
Discounts may be offered from time-to-time in accordance with
Western's Open Access Transmission Tariff (OATT).
Billing: Western will bill firm point-to-point transmission service
customers monthly by applying the rates listed above to the amount of
capacity reserved. Payment for long-term transmission service will be
required one month in advance of said service.
Character and Conditions of Service: Alternating current at 60
hertz, three-phase, delivered and metered at the voltages and points of
delivery established by the service agreement or contract.
Adjustments for Reactive Power: There shall be no entitlement to
transfer of reactive kilovolt-amperes at delivery points, except when
such transfers may be mutually agreed upon by the customer and Western
or their authorized representatives.
Adjustments for Losses: Capacity and energy losses incurred in
connection with the transmission and delivery of capacity and energy
under this rate schedule shall be supplied by the customer in
accordance with the service agreement or contract. If losses are not
fully provided by a customer, charges for financial compensation may
apply.
Unreserved Use: Western will assess a charge for any unreserved use
of the transmission system. Unreserved use occurs when a customer uses
transmission service that it has not reserved or uses transmission
service in excess of its reserved capacity. Unreserved use may also
include a customer's failure to curtail transmission when requested.
The charge for unreserved use is two times the maximum allowable
rate for the service at issue, assessed as follows: The penalty for a
single hour of unreserved use is based on the daily short-term rate.
The penalty for more than one assessment of unreserved use for any
given duration (e.g., daily) increases to next longest duration (e.g.,
weekly). The penalty for multiple instances of unreserved use (e.g.,
more than one hour) within a day is based on the daily short-term rate.
The penalty for multiple instances of unreserved use isolated to one
calendar week is based on the weekly short-term rate. The penalty for
multiple instances of unreserved use during more than one week in a
calendar month is based on the monthly short-term rate.
A customer that exceeds its reserved capacity at any point of
receipt or point of delivery, or a customer that uses transmission
service at a point of receipt or point of delivery that it has not
reserved, is required to pay for all ancillary services that were
provided by the Western Area Lower Colorado (WALC) Balancing Authority
and associated with the unreserved use. The customer will pay for
ancillary services based on the amount of transmission service used and
not reserved.
Nonfirm Transmission Service
Effective: The first day of the first full billing period beginning
on or after May 1, 2013, and will remain in effect through April 30,
2018, or until superseded by another rate schedule.
Applicable: To nonfirm transmission service customers where
capacity and energy are supplied to the Northwest-Pacific Southwest
Intertie Project (Intertie) transmission system at points of
interconnection with other systems and transmitted and delivered, less
losses, to points of delivery on the Intertie transmission system.
Rate: The nonfirm transmission service rate is 2.21 mills for each
kilowatt per hour. Discounts may be offered from time-to-time in
accordance with Western's Open Access Transmission Tariff (OATT).
Billing: Western will bill nonfirm transmission service customers
monthly by applying the rate listed above to the amount of capacity
reserved.
Character and Conditions of Service: Alternating current at 60
hertz, three-phase, interruptible, delivered and metered at the
voltages and points of delivery established by service agreement or in
advance by Western. Curtailment conditions shall be determined by
Western and in accordance with Western's OATT.
Adjustments for Reactive Power: There shall be no entitlement to
transfer of reactive kilovolt amperes at delivery points, except when
such transfers may be mutually agreed upon by the customer and Western
or their authorized representatives.
Adjustment for Losses: Capacity and energy losses incurred in
connection with the transmission and delivery of capacity and energy
under this rate schedule shall be supplied by the customer in
accordance with the service agreement or contract. If losses are not
fully provided by a customer, charges for financial compensation may
apply.
Unreserved Use: Western will assess a charge for any unreserved use
of the transmission system. Unreserved use occurs when a customer uses
transmission service that it has not reserved or uses transmission
service in excess of its reserved capacity. Unreserved use may also
include a customer's failure to curtail transmission when requested.
The charge for unreserved use is two times the maximum allowable
rate for the service at issue, assessed as follows: The penalty for a
single hour of unreserved use is based on the daily short-term rate.
The penalty for more than one assessment of unreserved use for any
given duration (e.g., daily) increases to next longest duration (e.g.,
weekly). The penalty for multiple instances of unreserved use (e.g.,
more than one hour) within a day is based on the daily short-term rate.
The penalty for multiple instances of unreserved use isolated to one
calendar week is based on the weekly short-term rate. The penalty for
multiple instances of unreserved use during more than one week in a
calendar month is based on the monthly short-term rate.
A customer that exceeds its reserved capacity at any point of
receipt or point of delivery, or a customer that uses transmission
service at a point of receipt or point of delivery that it has not
reserved, is required to pay for all ancillary services that were
provided by the Western Area Lower Colorado (WALC) Balancing Authority
and associated with the unreserved use. The customer will pay for
ancillary services based on the amount of transmission service used and
not reserved.
[FR Doc. 2013-07618 Filed 4-1-13; 8:45 am]
BILLING CODE 6450-01-P