[Federal Register Volume 78, Number 137 (Wednesday, July 17, 2013)]
[Notices]
[Pages 42764-42774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17129]
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DEPARTMENT OF ENERGY
Southeastern Power Administration
Cumberland System
AGENCY: Southeastern Power Administration (Southeastern), Department of
Energy.
ACTION: Notice of rate extension.
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SUMMARY: The Deputy Secretary, Department of Energy, extended on an
interim basis rate schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-I,
CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3. These rate schedules are
applicable to Southeastern power sold to existing preference customers
in Alabama, Georgia, Illinois, Kentucky, Mississippi, North Carolina,
Tennessee, and Virginia. The rate schedules are extended through
September 30, 2015.
DATES: Approval of the rate extension is effective October 1, 2013.
FOR FURTHER INFORMATION CONTACT: Virgil G. Hobbs III, Assistant
Administrator, Finance and Marketing, Southeastern Power
Administration, Department of Energy, 1166 Athens Tech Road, Elberton,
Georgia 30635-6711, (706) 213-3800.
SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by
Order issued December 22, 2011, in Docket No. EF11-13-000 (137 FERC ]
62,249), confirmed and approved Wholesale Power Rate Schedules CBR-1-H,
CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-1-H, CTVI-1-A, and
Replacement-3 through September 30, 2013. This order extends these rate
schedules on an interim basis.
Dated: July 10, 2013.
Daniel B. Poneman,
Deputy Secretary.
Deputy Secretary
Rate Order No. SEPA-57
In the Matter of:
Southeastern Power Administration Cumberland System Rates
Order Confirming and Approving Power Rates on an Interim Basis
Pursuant to Sections 302(a) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern
Power Administration (Southeastern), were transferred to and vested in
the Secretary of Energy. By Delegation Order No. 00-037.00, effective
December 6, 2001, the Secretary of Energy delegated to Southeastern's
Administrator the authority to develop power and transmission rates for
Southeastern customers and delegated to the Deputy Secretary of Energy
the authority to extend and place in effect such rates on an interim
basis. This rate is issued by the Deputy Secretary pursuant to that
delegation order.
Background
Power from the Cumberland Projects is presently sold under
Wholesale Power Rate Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-
I, CK-1-H, CTV-1-H, CTVI-1-A, and Replacement-3. These rate schedules
were approved by the Federal Energy Regulatory Commission (FERC) in
docket number EF11-13-000 on December 22, 2011, for a period ending
September 30, 2013 (137 FERC ] 62,249).
Public Notice and Comment
Notice of a proposed rate extension was published in the Federal
Register on March 28, 2013 (78 FR 18976). The notice advised interested
parties of a proposal to extend the existing rate schedules for a two-
year period, from October 1, 2013, through September 30, 2015. Written
comments were due on or before April 29, 2013. Written comments were
received from seven sources.
Comments received from interested parties are summarized below.
Southeastern's response follows each comment.
Comment 1: The customers support the proposed extension.
Response 1: Southeastern will recommend the extension to the Deputy
Secretary of the Department of Energy.
Comment 2: Future rate increases may drive Southeastern's rates to
the point where it would no longer be economical to purchase
Southeastern power. Once the full cost of repairs of the Wolf Creek and
Center Hill Projects are included, the customers estimate Southeastern
power will become uneconomical during nearly eighty percent of the
dispatchable hours. The potential price of the Southeastern resources
has been projected to exceed the expected market prices the majority of
the time.
Response 2: Southeastern is concerned the cost of power
Southeastern is responsible for marketing may exceed market rates.
Southeastern will work with the U.S. Army Corps of Engineers (Corps)
and the customers to ensure costs are managed and charged appropriately
in an effort to maintain competitive rates.
Comment 3: At present, the Corps has not completed the repair work
at the Wolf Creek and Center Hill Projects. It is appropriate that
Southeastern set a rate that does not include any of the repair costs
at this time.
Response 3: The cost of the repair work at Wolf Creek and Center
Hill has not been included in the proposed rate extension.
Comment 4: While the Corps has declined to consider the appropriate
statutory language in the Dam Safety Act that would mitigate the cost
that hydropower customers may be asked to pay, Southeastern retains the
full authority to ensure that the eventual rates for power will be the
lowest possible rates consistent with sound business principles.
Response 4: Southeastern agrees that it retains full authority to
ensure that the rates for power will be the lowest possible rates
consistent with sound business principles within the meaning of Section
5 of the Flood Control Act of 1944. As noted above, Southeastern has
not included the repair costs in the proposed rate extension.
Discussion
System Repayment
An examination of Southeastern's revised system power repayment
study, prepared in January 2013, for the Cumberland System, shows that
the existing rates are adequate to meet repayment criteria. The
Administrator of Southeastern Power Administration (Administrator) has
certified that the rates are consistent with applicable law and that
they are the lowest possible rates to customers consistent with sound
business principles.
Environmental Impact
Southeastern has reviewed the possible environmental impacts of the
rate extension under consideration and has concluded that, because the
adjusted rates would not significantly affect the quality of the human
environment within the meaning of the National Environmental Policy Act
of 1969, the proposed action is not a major
[[Page 42765]]
Federal action for which preparation of an Environmental Impact
Statement is required.
Availability of Information
Information regarding these rates, including studies and other
supporting materials, is available for public review in the offices of
Southeastern Power Administration, 1166 Athens Tech Road, Elberton,
Georgia 30635.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm and approve on an
interiml basis, effective October 1, 2013, attached Wholesale Power
Rate Schedules CBR-1-H, CSI-1-H, CEK-1-H, CM-1-H, CC-1-I, CK-1-H, CTV-
1-H, CTVI-1-A, and Replacement-3. The Rate Schedules shall remain in
effect through September 30, 2015, unless such period is extended or
until the FERC confirms and approves substitute Rate Schedules on a
final basis.
Dated:
Daniel B. Poneman
Deputy Secretary
Wholesale Power Rate Schedule CBR-1-H
Availability:
This rate schedule shall be available to Big Rivers Electric
Corporation and includes the City of Henderson, Kentucky (hereinafter
called the Customer).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 13,800 volts and 161,000
volts to the transmission system of Big Rivers Electric Corporation.
Points of Delivery:
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be agreed
upon by the Government and Tennessee Valley Authority (TVA).
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service:
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment, and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of TVA on its side of the delivery
point.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission:
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
Big Rivers Electric Corporation, 32.660%
City of Henderson, Kentucky, 2.202%
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U. S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
[[Page 42766]]
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all
Southeastern customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
customers.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.010
Wholesale Power Rate Schedule CSI-1-H
Availability:
This rate schedule shall be available to Southern Illinois Power
Cooperative (hereinafter the Customer).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 13,800 volts and 161,000
volts to the transmission system of Big Rivers Electric Corporation.
Points of Delivery
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be agreed
upon by the Government and Tennessee Valley Authority (TVA).
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay 5.138 percent of the credit the Administrator
of Southeastern Power Administration (Administrator) provides to the
TVA as consideration for delivering capacity and energy for the account
of the Administrator to points of delivery of Other Customers or
interconnection points of delivery with other electric systems for the
benefit of Other Customers, as agreed by contract between the
Administrator and TVA.
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U. S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
[[Page 42767]]
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all
Southeastern customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
customers.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.011
Wholesale Power Rate Schedule CEK-1-H
Availability:
This rate schedule shall be available to East Kentucky Power
Cooperative (hereinafter called the Customer).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and power available from the Laurel
Project and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of the Customer.
Points of Delivery
The points of delivery will be the 161,000 volt bus of the Wolf
Creek Power Plant and the 161,000 volt bus of the Laurel Project. Other
points of delivery may be as agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service:
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of the Tennessee Valley Authority (TVA)
on its side of the delivery point.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U. S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay 31.192 percent of the credit the
Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U. S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered from Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be
[[Page 42768]]
scheduled. The revenue requirement under this alternative is
$59,600,000, the same as the revenue requirement in Scenarios 1 and 3.
The Rate Scenario 2 will receive revenues from capacity that can be
scheduled and the remainder from energy, at charges that will be
determined at the time. Under Scenario 2, the cost of the TVA
transmission credit will be passed to customers outside the TVA System.
This rate alternative will be in effect when the Corps modifies
operation of the Wolf Creek Project and the Center Hill Project to
allow some of the capacity scheduled. When the lake level rises and
capacity is available, the capacity will be allocated on an interim
basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$2.950 per kilowatt/month of total contract demand.
Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand plus 369 kilowatt-hours of energy delivered for each
kilowatt of contract demand to supplement energy available at the
Laurel Project. A contract year is defined as the 12 months beginning
July 1 and ending at midnight June 30 of the following calendar year.
The energy made available for a contract year shall be scheduled
monthly such that the maximum amount scheduled in any month shall not
exceed 240 hours per kilowatt of the customer's contract demand and the
minimum amount scheduled in any month shall not be less than 60 hours
per kilowatt of the customer's contract demand. The customer may
request and the Government may approve energy scheduled for a month
greater than 240 hours per kilowatt of the customer's contract demand;
provided, that the combined schedule of all Southeastern customers
outside TVA and served by TVA does not exceed 240 hours per kilowatt of
the total contract demands of these customers.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.012
Wholesale Power Rate Schedule CM-1-H
Availability:
This rate schedule shall be available to the South Mississippi
Electric Power Association, Municipal Energy Agency of Mississippi, and
Mississippi Delta Energy Agency (hereinafter called the Customers).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Mississippi Power and Light.
Points of Delivery
The points of delivery will be at interconnection points of the
Tennessee Valley Authority (TVA) system and the Mississippi Power and
Light system. Other points of delivery may be as agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay a ratable percent listed below of the credit
the
[[Page 42769]]
Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
Mississippi Delta Energy Agency, 2.058%
Municipal Energy Agency of Mississippi, 3.447%
South Mississippi EPA, 9.358%
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
Customer from the Projects through the Customer's interconnections with
TVA and the Customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the Customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the Customer's contract demand. The
Customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the Customer's
contract demand; provided, that the combined schedule of all
Southeastern Customers outside TVA and served by TVA does not exceed
240 hours per kilowatt of the total contract demands of these
Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
Service Interruption:
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.013
Wholesale Power Rate Schedule CC-1-I
Availability:
This rate schedule shall be available to public bodies and
cooperatives served through the facilities of Carolina Power & Light
Company, Western Division (hereinafter called the Customers).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission system of Carolina Power & Light Company, Western
Division.
Points of Delivery
The points of delivery will be at interconnecting points of the
Tennessee Valley Authority (TVA) system and the Carolina Power & Light
Company, Western Division system. Other points of delivery may be as
agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
[[Page 42770]]
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
TVA Transmission Charge:
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
French Broad EMC, 1.713%
Haywood EMC, 0.501%
Town of Waynesville, 0.355%
CP&L Transmission Charge:
The Customer will way a ratable percent listed below of the charge
for transmission service furnished by Carolina Power & Light Company,
Western Division.
French Broad EMC, 66.667%
Haywood EMC, 19.512%
Town of Waynesville, 13.821%
Energy To Be Furnished by the Government:
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less applicable losses). The Customer's
contract demand and accompanying energy allocation will be divided pro
rata among its individual delivery points served from the Carolina
Power & Light Company's, Western Division transmission system.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.832 per kilowatt/month of total contract demand.
Energy Charge:
None.
CP&L Transmission Charge:
$1.3334 per kilowatt/month of total contract demand (As of July
2011 and provided for illustrative purposes.)
The CP&L transmission rate is subject to annual adjustment on April
1 of each year and will be computed subject to the formula in Appendix
A attached to the Government--Carolina Power & Light Company contract.
Energy to be Furnished by the Government:
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less six percent [6%] losses). The
Customer's contract demand and accompanying energy allocation will be
divided pro rata among its individual delivery points served from the
Carolina Power & Light Company's, Western Division transmission system.
Wholesale Power Rate Schedule CK-1-H
Availability:
This rate schedule shall be available to public bodies served
through the facilities of Kentucky Utilities Company, (hereinafter
called the Customers.)
Applicability:
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest, and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of 60 hertz. The power
shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Kentucky Utilities Company.
Points of Delivery
The points of delivery will be at interconnecting points between
the Tennessee Valley Authority (TVA) system and the Kentucky Utilities
Company system. Other points of delivery may be as agreed upon.
Billing Month:
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to
[[Page 42771]]
prevent failure of the dams, Southeastern is not able to provide
peaking capacity to these customers. Southeastern implemented an
Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the TVA as consideration for delivering capacity and energy
for the account of the Administrator to points of delivery of Other
Customers or interconnection points of delivery with other electric
systems for the benefit of Other Customers, as agreed by contract
between the Administrator and TVA.
City of Barbourville, 0.404%
City of Bardstown, 0.412%
City of Bardwell, 0.099%
City of Benham, 0.046%
City of Corbin, 0.477%
City of Falmouth, 0.108%
City of Frankfort, 2.866%
City of Madisonville, 1.432%
City of Nicholasville, 0.469%
City of Owensboro, 4.587%
City of Paris, 0.250%
City of Providence, 0.226%
Energy to be Furnished by the Government:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U. S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered from Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$4.245 per kilowatt/month of total contract demand.
Energy Charge:
None.
Additional Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Furnished by the Government:
The Government shall make available each contract year to the
Customer from the Projects and the Customer will accept an allocation
of 1500 kilowatt-hours of energy for each kilowatt of contract demand.
A contract year is defined as the 12 months beginning July 1 and ending
at midnight June 30 of the following calendar year. The energy made
available for a contract year shall be scheduled monthly such that the
maximum amount scheduled in any month shall not exceed 240 hours per
kilowatt of the Customer's contract demand and the minimum amount
scheduled in any month shall not be less than 60 hours per kilowatt of
the Customer's contract demand. The Customer may request and the
Government may approve energy scheduled for a month greater than 240
hours per kilowatt of the Customer's contract demand; provided, that
the combined schedule of all Southeastern Customers outside TVA and
served by TVA does not exceed 240 hours per kilowatt of the total
contract demands of these Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
For billing purposes, each kilowatt of capacity will include 1500
kilowatt-hours energy per year. Customers will pay for additional
energy at the additional energy rate.
Wholesale Power Rate Schedule CTV-1-H
Availability:
This rate schedule shall be available to the Tennessee Valley
Authority (hereinafter called TVA).
Applicability:
This rate schedule shall be applicable to electric capacity and
energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old
Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereafter called collectively the
``Cumberland Projects'') and the Laurel Project sold under agreement
between the Department of Energy and TVA.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a frequency of approximately 60 hertz at
the outgoing terminals of the Cumberland Projects' switchyards.
Billing Month:
The billing month for capacity and energy sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Contract Year:
For purposes of this rate schedule, a contract year shall be as in
Section 13.1 of the Southeastern Power Administration--Tennessee Valley
Authority Contract.
Power Factor:
TVA shall take capacity and energy from the Department of Energy at
such power factor as will best serve TVA's system from time to time;
provided, that TVA shall not impose a power factor of less than .85
lagging on the Department of Energy's facilities which requires
operation contrary to good operating practice or results in overload or
impairment of such facilities.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project
[[Page 42772]]
imposed by the U.S. Army Corps of Engineers (Corps) as a precaution to
prevent failure of the dams, Southeastern is not able to provide
peaking capacity to these customers. Southeastern implemented an
Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rates:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Energy to be Made Available:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. Under
Scenario 2, the cost of the TVA transmission credit will be passed to
customers outside the TVA System. This rate alternative will be in
effect when the Corps modifies operation of the Wolf Creek Project and
the Center Hill Project to allow some of the capacity scheduled. When
the lake level rises and capacity is available, the capacity will be
allocated on an interim basis to the customers.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on theoperation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$2.779 per kilowatt/month of total contract demand.
Energy Charge:
None.
Additional Energy Charge:
10.358 mills per kilowatt-hour.
Energy to be Made Available:
The Department of Energy shall determine the energy that is
available from the projects for declaration in the billing month.
To meet the energy requirements of the Department of Energy's
customers outside the TVA area (hereinafter called Other Customers),
768,000 megawatt-hours of net energy shall be available annually
(including 36,900 megawatt-hours of annual net energy to supplement
energy available at Laurel Project). The energy requirement of the
Other Customers shall be available annually, divided monthly such that
the maximum available in any month shall not exceed 240 hours per
kilowatt of total Other Customers contract demand, and the minimum
amount available in any month shall not be less than 60 hours per
kilowatt of total Other Customers demand.
In the event that any portion of the capacity allocated to Other
Customers is not initially delivered to the Other Customers as of the
beginning of a full contract year, (July through June), the 1500 hours,
plus any such additional energy required as discussed above, shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
The energy scheduled by TVA for use within the TVA System in any
billing month shall be the total energy delivered to TVA less (1) an
adjustment for fast or slow meters, if any, (2) an adjustment for
Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month
which is delivered to TVA under the agreement from the Cumberland
Projects without charge to TVA, (3) the energy scheduled by the
Department of Energy in said month for the Other Customers plus losses
of two percent [2%], and (4) station service energy furnished by TVA.
Each kilowatt of capacity will include 1500 kilowatt-hours of
energy per year, which is defined as base energy. Energy received in
excess of 1500 kilowatt-hours per kilowatt will be subject to an
additional energy charge identified in the monthly rates section of
this rate schedule.
Service Interruption:
When delivery of capacity to TVA is interrupted or reduced due to
conditions on the Department of Energy's system that are beyond its
control, the Department of Energy will continue to make available the
portion of its declaration of energy that can be generated with the
capacity available.
For such interruption or reduction (exclusive of any restrictions
provided in the agreement) due to conditions on the Department of
Energy's system which have not been arranged for and agreed to in
advance, the demand charge for scheduled capacity made available to TVA
will be reduced as to the kilowatts of such scheduled capacity which
have been so interrupted or reduced for each day in accordance with the
following formula:
[GRAPHIC] [TIFF OMITTED] TN17JY13.014
Wholesale Power Rate Schedule CTVI-1-A
Availability:
This rate schedule shall be available to customers (hereinafter
called the Customer) who are or were formerly in the Tennessee Valley
Authority (hereinafter called TVA) service area.
Applicability:
This rate schedule shall be applicable to electric capacity and
energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old
Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereafter called collectively the
``Cumberland Projects'') and the Laurel Project sold under agreement
between the Department of Energy and the Customer.
Character of Service:
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a frequency of approximately 60 hertz at
the outgoing terminals of the Cumberland Projects' switchyards.
[[Page 42773]]
Billing Month:
The billing month for capacity and energy sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Contract Year:
For purposes of this rate schedule, a contract year shall be as in
Section 13.1 of the Southeastern Power Administration--Tennessee Valley
Authority Contract.
Southeastern Power Administration (Southeastern) is including three
rate alternatives. All of the rate alternatives have a revenue
requirement of $59,600,000.
Rate Scenario 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the TVA transmission system. Due to
restrictions on the operation of the Wolf Creek Project and the Center
Hill Project imposed by the U.S. Army Corps of Engineers (Corps) as a
precaution to prevent failure of the dams, Southeastern is not able to
provide peaking capacity to these customers. Southeastern implemented
an Interim Operating Plan for the Cumberland System to provide these
customers with energy that did not include capacity. The rates under
Scenario 1 will remain in effect for the duration of the Interim
Operating Plan.
Monthly Rates:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
None.
Energy Charge:
17.69 mills per kilowatt-hour.
Transmission Charge:
The initial charge for transmission and Ancillary Services will be
the Customer's ratable share of the charges for transmission,
distribution, and ancillary services paid by the Government. The
charges for transmission and ancillary services are governed by and
subject to refund based upon the determination in proceedings before
the Federal Energy Regulatory Commission (FERC) or other overseeing
entity involving the TVA's and other transmission provider's Open
Access Transmission Tariff (OATT).
Proceedings before FERC or other overseeing entity involving the
OATT or the Distribution charge may result in the separation of charges
currently included in the transmission rate. In this event, the
Government may charge the Customer for any and all separate
transmission, ancillary services, and distribution charges paid by the
Government in behalf of the Customer. These charges could be recovered
through a capacity charge or an energy charge, as determined by the
Government.
Energy To Be Made Available:
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Scenario 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $59,600,000, the same as the
revenue requirement in Scenarios 1 and 3. The Rate Scenario 2 will
receive revenues from capacity that can be scheduled and the remainder
from energy, at charges that will be determined at the time. This rate
alternative will be in effect when the Corps modifies operation of the
Wolf Creek Project and the Center Hill Project to allow some of the
capacity scheduled. When the lake level rises and capacity is
available, the capacity will be allocated on an interim basis to the
customers. The Customer will pay the same rate for capacity and energy
as TVA. The Customer will pay their ratable share of any transmission
charges paid in behalf of the Customer.
Rate Scenario 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate:
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge:
$2.779 per kilowatt/month of total contract demand.
Energy Charge:
None.
Additional Energy Charge:
10.358 mills per kilowatt-hour.
Transmission Charge:
The initial charge for transmission and Ancillary Services will be
the Customer's ratable share of the charges for transmission,
distribution, and ancillary services paid by the Government. The
charges for transmission and ancillary services are governed by and
subject to refund based upon the determination in proceedings before
FERC or other overseeing entity involving the TVA's and other
transmission provider's Open Access Transmission Tariff (OATT).
Proceedings before FERC or other overseeing entity involving the
OATT or the Distribution charge may result in the separation of charges
currently included in the transmission rate. In this event, the
Government may charge the Customer for any and all separate
transmission, ancillary services, and distribution charges paid by the
Government in behalf of the Customer. These charges could be recovered
through a capacity charge or an energy charge, as determined by the
Government.
Energy To Be Made Available:
The energy will be scheduled by TVA and the Customer will receive
their ratable share, in accordance with the Government-Customer
Contract. Energy shall be accounted for, in accordance with agreements
with TVA.
The Customer will receive a ratable share of their capacity, in
accordance with the Government-Customer Contract.
Service Interruption:
When delivery of capacity to TVA is interrupted or reduced due to
conditions on the Department of Energy's system that are beyond its
control, the Department of Energy will continue to make available the
portion of its declaration of energy that can be generated with the
capacity available. The customer will receive a ratable share of this
capacity.
For such interruption or reduction (exclusive of any restrictions
provided in the agreement) due to conditions on the Department of
Energy's system which have not been arranged for and agreed to in
advance, the demand charge for scheduled capacity made available to the
Customer will be reduced as to the kilowatts of such scheduled capacity
which have been so interrupted or reduced for each day in accordance
with the following formula:
[[Page 42774]]
[GRAPHIC] [TIFF OMITTED] TN17JY13.015
Wholesale Rate Schedule Replacement--3
Availability:
This rate schedule shall be available to public bodies and
cooperatives (any one of whom is hereinafter called the Customer) in
Virginia, North Carolina, Tennessee, Georgia, Alabama, Mississippi,
Kentucky, and southern Illinois to whom power is provided pursuant to
contracts between the Government and the customer from the Dale Hollow,
Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy
Priest, Cordell Hull, and Laurel Projects (all of such projects being
hereinafter called collectively the ``Cumberland Projects'').
Applicability:
This rate schedule shall be applicable to the sale of wholesale
energy purchased to meet contract minimum energy sold under appropriate
contracts between the Government and the Customer.
Character of Service:
The energy supplied hereunder will be delivered at the delivery
points provided for under appropriate contracts between the Government
and the Customer.
Monthly Charge:
The rate for replacement energy will be a formulary capacity charge
based on the monthly cost to the Government to purchase replacement
energy necessary to support capacity in the Cumberland System divided
by the capacity available from the Cumberland System, which is 950,000
kilowatts in the published power marketing policy. The capacity rate
will be adjusted for any capacity retained by the Customer's
transmission facilitator.
Conditions of Service:
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system.
[FR Doc. 2013-17129 Filed 7-16-13; 8:45 am]
BILLING CODE 6450-01-P