[Federal Register Volume 82, Number 185 (Tuesday, September 26, 2017)]
[Notices]
[Pages 44772-44783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20034]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Integrated System Rate Schedules
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of extension.
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SUMMARY: The Deputy Secretary has approved and placed into effect on an
interim basis Rate Order No. SWPA-72 which extends the existing rate
schedules for the Integrated System:
Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission
Service
Rate Schedule EE-13, Wholesale Rates for Excess Energy
This is an interim rate action effective October 1, 2017, extending for
a period of two years through September 30, 2019.
DATES: The effective period for the rate schedules specified in Rate
Order No. SWPA-72 is October 1, 2017, through September 30, 2019.
FOR FURTHER INFORMATION CONTACT: Mr. Marshall Boyken, Senior Vice
President, Chief Operating Office, Office of Corporate Operations,
Southwestern Power Administration, U.S. Department of Energy, One West
Third Street, Tulsa, Oklahoma 74103, (918) 595-6646,
[email protected] or facsimile transmission (918) 595-6646.
SUPPLEMENTARY INFORMATION: Pursuant to Delegation Order Nos. 00-
037.00B, effective November 19, 2016, and 00-001.00F, effective
November 17, 2014, and pursuant to the implementation authorities in 10
CFR 903.22(h) and 903.23(a)(3), Rate Order No. SWPA-72 is approved and
placed into effect on an interim basis for the period October 1, 2017,
through September 30, 2019, for the following rate schedules:
Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission
Service
Rate Schedule EE-13, Wholesale Rates for Excess Energy
These current rate schedules for the Integrated System were
confirmed and approved on a final basis by the Federal Energy
Regulatory Commission (FERC) on January 9, 2014, for the period October
1, 2013, through September 30, 2017. Since initial FERC approval, a new
section within rate schedule NFTS-13 was added to change from a stated
rate to a revenue-requirement based methodology to better align with
practices utilized by the Southwest Power Pool, Inc. Regional
Transmission Organization. The revised rate schedule NFTS-13 was
designated NFTS-13A and was subsequently approved on a final basis by
FERC on March 9, 2017 in Docket No. EF14-1-001 (158 FERC ] 62,182)
effective through September 30, 2017.
The Administrator, Southwestern, completed an annual review of the
continuing adequacy of the existing hydroelectric rate schedules for
the Integrated System. This review, as presented in the 2017 Power
Repayment Studies (PRSs), indicated the need for a revenue adjustment
of 0.7 percent to continue to satisfy cost recovery criteria. Because
the 0.7 percent revenue adjustment was within Southwestern's
established 2 percent rate adjustment threshold, the
Administrator deferred the revenue adjustment and now adopts the two-
year extension of the Integrated System rate schedules.
The Administrator has followed Title 10, part 903 subpart A, of the
Code of Federal Regulations, ``Procedures for Public Participation in
Power and Transmission Rate Adjustments and Extensions'' for the
proposed extension to the rate schedules. The public was advised by
notice published in the Federal Register (82 FR 27062), June 13, 2017,
of the proposed extension of the rate schedules and of the opportunity
to provide written comments for a period of 30 days ending July 13,
2017. No comments were received.
Information regarding the extension of these rate schedules,
including the rate schedules and other supporting material, is
available for public review in the offices of Southwestern Power
Administration, Williams Tower I, One West Third Street, Tulsa,
Oklahoma 74103. I have reviewed the Southwestern proposal and I approve
Rate Order No. SWPA-72.
Dated: September 13, 2017.
Dan Brouillette,
Deputy Secretary.
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
DEPUTY SECRETARY
In the matter of: Southwestern Power Administration Integrated
System Rates
Rate Order No. SWPA-72
ORDER APPROVING EXTENSION OF RATE SCHEDULES ON AN INTERIM BASIS
Pursuant to Sections 302(a) and 301(b) 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 Southwestern Power Administration (Southwestern) were
transferred to and vested in the Secretary of Energy. By Delegation
Order No. 00-037.00B, the Secretary of Energy delegated to the
Administrator, Southwestern, the authority to develop power and
transmission rates, delegated to the Deputy Secretary of Energy the
authority to confirm, approve, and place in effect such rates on an
interim basis and delegated to the Federal Energy Regulatory
Commission (FERC) the authority to confirm and approve on a final
basis or to disapprove rates developed by the Administrator under
the delegation. Pursuant to that delegated authority, the Deputy
Secretary has issued this interim rate order.
BACKGROUND
The following rate schedules for the Integrated System were
confirmed and approved on a final basis by FERC on January 9, 2014,
for the period October 1, 2013, through September 30, 2017.
Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates Non-Federal Transmission
Service
Rate Schedule EE-13, Wholesale Rate for Excess Energy
Since initial FERC approval, a new section within rate schedule
NFTS-13 was added to change from a stated rate to a revenue-
requirement based methodology to better align with practices
utilized by the Southwest Power Pool, Inc. Regional Transmission
Organization. The revised rate schedule NFTS-13 was designated NFTS-
13A and was subsequently approved on a final basis by FERC on March
9, 2017 in Docket No. EF14-1-001 (158 FERC ] 62,182) effective
through September 30, 2017.
Southwestern followed Title 10 Part 903 of the Code of Federal
Regulations, ``Procedures for Public Participation in Power and
Transmission Rate Adjustments and Extensions'' (Part 903) for the
proposed extension of the rate schedules. An opportunity for
customers and other interested members of the public to review and
comment on the proposed extension of the rate schedules was
announced by notice published in the Federal Register on June 13,
2017, (82 FR 27062), with written comments due by July 13, 2017. No
comments were received.
[[Page 44773]]
DISCUSSION
The existing Integrated System rate schedules are based on the
2013 Power Repayment Studies (PRSs). PRSs have been completed on the
Integrated System each year since approval of the existing rate
schedules. The estimated revised annual revenue identified by the
PRSs since the 2013 PRSs have indicated the need for minimal rate
increases. Since the revenue changes reflected by the PRSs were
within the plus-or-minus two percent rate adjustment threshold
established by the Administrator on June 23, 1987, these rate
adjustments were deferred in the best interest of the government.
The 2017 PRSs indicated the need for an annual revenue increase
of 0.7 percent. As has been the case since the existing rate
schedules were approved, the 2017 rate adjustment fell within
Southwestern's plus-or-minus two percent rate adjustment threshold
and was deferred by the Administrator with no rate filing necessary.
However, the existing rate schedules are set to expire on September
30, 2017. Consequently, Southwestern proposes to extend the existing
rate schedules for a two-year period ending September 30, 2019, on
an interim basis under the implementation authorities noted in 10
CFR 903.22(h) and 903.23(a)(3).
COMMENTS AND RESPONSES
Southwestern received no comments regarding the extension of the
Integrated System rate schedules.
AVAILABILITY OF INFORMATION
Information regarding the extension of the rate schedules is
available for public review in the offices of Southwestern Power
Administration, Williams Tower I, One West Third Street, Tulsa,
Oklahoma 74103.
ADMINISTRATION'S CERTIFICATION
The 2013 Integrated System PRSs indicated that the current rate
schedules will repay all costs of the Integrated System including
amortization of the power investment consistent with the provisions
of Department of Energy Order No. RA 6120.2. The 2017 Integrated
System PRSs indicate the need for an annual revenue increase of 0.7
percent. However, the 2017 rate adjustment falls within
Southwestern's established plus-or-minus two percent rate adjustment
threshold and was deferred. Southwestern's 2018 PRSs will determine
the appropriate level of revenues needed for the next rate period.
In accordance with Delegation Order Nos. 00-037.00B (November 19,
2016), and 00-001.00F, effective November 17, 2014, and Section 5 of
the Flood Control Act of 1944, the Administrator has determined that
the existing Integrated System rate schedules are the lowest
possible rates consistent with sound business principles, and their
extension is consistent with applicable law.
ENVIRONMENT
The Southwestern NEPA Compliance Officer determined that this
class of actions is categorically excluded from the requirements of
preparing either an Environmental Impact Statement or an
Environmental Assessment. No additional evaluation of the
environmental impact of the extension of the existing rate schedules
was conducted since no change in anticipated revenues has been made
to the currently-approved Integrated System rate schedules.
ADMINISTRATIVE PROCEDURES
The Administrative Procedure Act (5 U.S.C. 553(d)) prescribes
that the required publication or service of a substantive rule shall
be made not less than 30 days before its effective date, except (1)
a substantive rule that grants or recognizes an exemption or
relieves a restriction; (2) interpretative rules and statements of
policy; or (3) as otherwise provided by the agency for good cause
found and published with the rule. The Department of Energy finds
good cause to waive the 30-day delay in effective date of this
action as unnecessary for the following reasons: (1) this is an
extension of rates previously approved by FERC, pursuant to 10 CFR
903.23(a); (2) there are no substantive changes as the existing rate
schedules and anticipated revenues remain the same; and (3) the
Administrator provided notice and opportunity for public comment
more than 30 days prior to the effective date of the rate extension
and received no comments.
ORDER
In view of the foregoing and pursuant to the authority delegated
to me by the Secretary of Energy, I hereby extend on an interim
basis, for the period of two years, effective October 1, 2017,
through September 30, 2019, the current rate schedules for the
Integrated System:
Rate Schedule P-13, Wholesale Rates for Hydro Peaking Power
Rate Schedule NFTS-13A, Wholesale Rates for Non-Federal Transmission
Service
Rate Schedule EE-13, Wholesale Rates for Excess Energy
Dated: September 17, 2017
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Dan Brouillette,
Deputy Secretary.
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE P-13 \1\
**
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\1\ Supersedes Rate Schedule P-11.
** Extended through September 30, 2019 by approval of Rate Order
No. SWPA-72 by the Deputy Secretary of Energy.
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WHOLESALE RATES FOR HYDRO PEAKING POWER
Effective:
During the period October 1, 2013, through September 30, 2019**, in
accordance with Federal Energy Regulatory Commission order issued
January 9, 2014, Docket No. EF14-1-000.
Available:
In the marketing area of Southwestern Power Administration
(Southwestern), described generally as the States of Arkansas,
Kansas, Louisiana, Missouri, Oklahoma, and Texas.
Applicable:
To wholesale Customers which have contractual rights from
Southwestern to purchase Hydro Peaking Power and associated energy
(Peaking Energy and Supplemental Peaking Energy).
Character and Conditions of Service:
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage(s), at the point(s) of delivery, and
in such quantities as are specified by contract.
1.
Definitions of Terms
1.2. Ancillary Services
The services necessary to support the transmission of capacity and
energy from resources to loads while maintaining reliable operation
of the System of Southwestern in accordance with good utility
practice, which include the following:
1.2.1. Scheduling, System Control, and Dispatch Service
is provided by Southwestern as Balancing Authority Area operator and
is in regard to interchange and load-match scheduling and related
system control and dispatch functions.
1.2.2. Reactive Supply and Voltage Control from Generation Sources
Service
is provided at transmission facilities in the System of Southwestern
to produce or absorb reactive power and to maintain transmission
voltages within specific limits.
1.2.3. Regulation and Frequency Response Service
is the continuous balancing of generation and interchange resources
accomplished by raising or lowering the output of on-line generation
as necessary to follow the moment-by-moment changes in load and to
maintain frequency within a Balancing Authority Area.
1.2.4. Spinning Operating Reserve Service
maintains generating units on-line, but loaded at less than maximum
output, which may be used to service load immediately when
disturbance conditions are experienced due to a sudden loss of
generation or load.
1.2.5. Supplemental Operating Reserve Service
provides an additional amount of operating reserve sufficient to
reduce Area Control Error to zero within 10 minutes following loss
of generating capacity which would result from the most severe
single contingency.
1.2.6. Energy Imbalance Service
corrects for differences over a period of time between schedules and
actual hourly deliveries of energy to a load. Energy delivered or
received within the authorized bandwidth for this service is
accounted for as an inadvertent flow and is returned to the
providing party by the receiving party in accordance with standard
utility practice or
[[Page 44774]]
a contractual arrangement between the parties.
1.3. Customer
The entity which is utilizing and/or purchasing Federal Power and
Federal Energy and services from Southwestern pursuant to this Rate
Schedule.
1.4. Demand Period
The period of time used to determine maximum integrated rates of
delivery for the purpose of power accounting which is the 60-minute
period that begins with the change of hour.
1.5. Federal Power and Energy
The power and energy provided from the System of Southwestern.
1.6. Hydro Peaking Power
The Federal Power that Southwestern sells and makes available to the
Customers through their respective Power Sales Contracts in
accordance with this Rate Schedule.
1.7. Peaking Billing Demand
The quantity equal to the Peaking Contract Demand for any month
unless otherwise provided by the Customer's Power Sales Contract.
1.8. Peaking Contract Demand
The maximum rate in kilowatts at which Southwestern is obligated to
deliver Federal Energy associated with Hydro Peaking Power as set
forth in the Customer's Power Sales Contract.
1.9. Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer in accordance
with the terms and conditions of the Customer's Power Sales
Contract.
1.10. Power Sales Contract
The Customer's contract with Southwestern for the sale of Federal
Power and Federal Energy.
1.11. Supplemental Peaking Energy
The Federal Energy associated with Hydro Peaking Power that
Southwestern sells and makes available to the Customer if determined
by Southwestern to be available and that is in addition to the
quantity of Peaking Energy purchased by the Customer in accordance
with the terms and conditions of the Customer's Power Sales
Contract.
1.12. System of Southwestern
The transmission and related facilities owned by Southwestern, and/
or the generation, transmission, and related facilities owned by
others, the capacity of which, by contract, is available to and
utilized by Southwestern to satisfy its contractual obligations to
the Customer.
1.13. Uncontrollable Force
Any force which is not within the control of the party affected,
including, but not limited to failure of water supply, failure of
facilities, flood, earthquake, storm, lightning, fire, epidemic,
riot, civil disturbance, labor disturbance, sabotage, war, act of
war, terrorist acts, or restraint by court of general jurisdiction,
which by exercise of due diligence and foresight such party could
not reasonably have been expected to avoid.
2.
Wholesale Rates, Terms, and Conditions for Hydro Peaking Power, Peaking
Energy, Supplemental Peaking Energy, and Associated Services
Unless otherwise specified, this Section 2 is applicable to all
sales under the Customer's Power Sales Contract.
2.2. Hydro Peaking Power Rates, Terms, and Conditions
2.2.1. Monthly Capacity Charge for Hydro Peaking Power
$4.50 per kilowatt of Peaking Billing Demand.
2.2.2. Services Associated with Capacity Charge for Hydro Peaking Power
The capacity charge for Hydro Peaking Power includes such
transmission services as are necessary to integrate Southwestern's
resources in order to reliably deliver Hydro Peaking Power and
associated energy to the Customer. This capacity charge also
includes two Ancillary Services charges: Scheduling, System Control,
and Dispatch Service; and Reactive Supply and Voltage Control from
Generation Sources Service.
2.2.3. Secondary Transmission Service under Capacity Associated with
Hydro Peaking Power
Customers may utilize the transmission capacity associated with
Peaking Contract Demand for the transmission of non-Federal energy,
on a non-firm, as-available basis, at no additional charge for such
transmission service or associated Ancillary Services, under the
following terms and conditions:
2.2.3.1. The sum of the capacity, for any hour, which is used
for Peaking Energy, Supplemental Peaking Energy, and Secondary
Transmission Service, may not exceed the Peaking Contract Demand;
2.2.3.2. The non-Federal energy transmitted under such secondary
service is delivered to the Customer's point of delivery for Hydro
Peaking Power;
2.2.3.3. The Customer commits to provide Real Power Losses
associated with such deliveries of non-Federal energy; and
2.2.3.4. Sufficient transfer capability exists between the point
of receipt into the System of Southwestern of such non-Federal
energy and the Customer's point of delivery for Hydro Peaking Power
for the time period that such secondary transmission service is
requested.
2.2.4. Adjustment for Reduction in Service
If, during any month, the Peaking Contract Demand associated with a
Power Sales Contract in which Southwestern has the obligation to
provide 1,200 kilowatthours of Peaking Energy per kilowatt of
Peaking Contract Demand is reduced by Southwestern for a period or
periods of not less than two consecutive hours by reason of an
outage caused by either an Uncontrollable Force or by the
installation, maintenance, replacement or malfunction of generation,
transmission and/or related facilities on the System of
Southwestern, or insufficient pool levels, the Customer's capacity
charges for such month will be reduced for each such reduction in
service by an amount computed under the formula:
R = (C x K x H) / S
with the factors defined as follows:
R = The dollar amount of reduction in the monthly total capacity
charges for a particular reduction of not less than two consecutive
hours during any month, except that the total amount of any such
reduction shall not exceed the product of the Customer's capacity
charges associated with Hydro Peaking Power times the Peaking
Billing Demand.
C = The Customer's capacity charges associated with Hydro Peaking
Power for the Peaking Billing Demand for such month.
K = The reduction in kilowatts in Peaking Billing Demand for a
particular event.
H = The number of hours duration of such particular reduction.
S = The number of hours that Peaking Energy is scheduled during such
month, but not less than 60 hours times the Peaking Contract Demand.
Such reduction in charges shall fulfill Southwestern's obligation to
deliver Hydro Peaking Power and Peaking Energy.
2.3. Peaking Energy and Supplemental Peaking Energy Rates, Terms, and
Conditions
2.3.1. Peaking Energy Charge
$0.0094 per kilowatthour of Peaking Energy delivered plus the
Purchased Power Adder as defined in Section 2.2.3 of this Rate
Schedule.
2.3.2. Supplemental Energy Charge
$0.0094 per kilowatthour of Supplemental Peaking Energy delivered.
2.3.3. Purchased Power Adder
A purchased power adder of $0.0059 per kilowatthour of Peaking
Energy delivered, as adjusted by the Administrator, Southwestern, in
accordance with the procedure within this Rate Schedule.
2.3.3.1. Applicability of Purchased Power Adder
The Purchased Power Adder shall apply to sales of Peaking Energy.
The Purchased Power Adder shall not apply to sales of Supplemental
Peaking Energy or sales to any Customer which, by contract, has
assumed the obligation to supply energy to fulfill the minimum of
1,200 kilowatthours of Peaking Energy per kilowatt of Peaking
Contract Demand during a contract year (hereinafter ``Contract
Support Arrangements'').
2.3.3.2. Procedure for Determining Net Purchased Power Adder Adjustment
Not more than twice annually, the Purchased Power Adder of $0.0059
(5.9 mills) per kilowatthour of Peaking Energy, as noted in this
Rate Schedule, may be adjusted by the Administrator, Southwestern,
by an amount
[[Page 44775]]
up to a total of $0.0059 (5.9 mills) per kilowatthour
per year, as calculated by the following formula:
ADJ = (PURCH-EST + DIF) / SALES
with the factors defined as follows:
ADJ = The dollar per kilowatthour amount of the total adjustment,
plus or minus, to be applied to the net Purchased Power Adder,
rounded to the nearest $0.0001 per kilowatthour, provided that the
total ADJ to be applied in any year shall not vary from the then-
effective ADJ by more than $0.0059 per kilowatthour;
PURCH = The actual total dollar cost of Southwestern's System Direct
Purchases as accounted for in the financial records of the
Southwestern Federal Power System for the period;
EST = The estimated total dollar cost ($13,273,800 per year) of
Southwestern's System Direct Purchases used as the basis for the
Purchased Power Adder of $0.0059 per kilowatthour of Peaking Energy;
DIF = The accumulated remainder of the difference in the actual and
estimated total dollar cost of Southwestern's System Direct
Purchases since the effective date of the currently approved
Purchased Power Adder set forth in this Rate Schedule, which
remainder is not projected for recovery through the ADJ in any
previous periods;
SALES = The annual Total Peaking Energy sales projected to be
delivered (2,241,300,000 KWh per year) from the System of
Southwestern, which total was used as the basis for the $0.0059 per
kilowatthour Purchased Power Adder.
2.4. Transformation Service Rates, Terms, and Conditions
2.4.1. Monthly Capacity Charge for Transformation Service
$0.46 per kilowatt will be assessed for capacity used to deliver
energy at any point of delivery at which Southwestern provides
transformation service for deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
2.4.2. Applicability of Capacity Charge for Transformation Service
Unless otherwise specified by contract, for any particular month, a
charge for transformation service will be assessed on the greater of
(1) that month's highest metered demand, or (2) the highest metered
demand recorded during the previous 11 months, at any point of
delivery. For the purpose of this Rate Schedule, the highest metered
demand will be based on all deliveries, of both Federal and non-
Federal energy, from the System of Southwestern, at such point
during such month.
2.5. Ancillary Services Rates, Terms, and Conditions
2.5.1. Capacity Charges for Ancillary Services
2.5.1.1. Regulation and Frequency Response Service
Monthly rate of $0.07 per kilowatt of Peaking Billing Demand plus
the Regulation Purchased Adder as defined in Section 2.4.5 of this
Rate Schedule.
2.5.1.2. Spinning Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.5.1.3. Supplemental Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of Peaking Billing Demand.
Daily rate of $0.00066 per kilowatt for non-Federal generation
inside Southwestern's Balancing Authority Area.
2.5.1.4. Energy Imbalance Service
$0.0 per kilowatt for all reservation periods.
2.5.2. Availability of Ancillary Services
Regulation and Frequency Response Service and Energy Imbalance
Service are available only for deliveries of power and energy to
load within Southwestern's Balancing Authority Area. Spinning
Operating Reserve Service and Supplemental Operating Reserve Service
are available only for deliveries of non-Federal power and energy
generated by resources located within Southwestern's Balancing
Authority Area and for deliveries of all Hydro Peaking Power and
associated energy from and within Southwestern's Balancing Authority
Area. Where available, such Ancillary Services must be taken from
Southwestern; unless, arrangements are made in accordance with
Section 2.4.4 of this Rate Schedule.
2.5.3. Applicability of Charges for Ancillary Services
For any month, the charges for Ancillary Services for deliveries of
Hydro Peaking Power shall be based on the Peaking Billing Demand.
The daily charge for Spinning Operating Reserve Service and
Supplemental Operating Reserve Service for non-Federal generation
inside Southwestern's Balancing Authority Area shall be applied to
the greater of Southwestern's previous day's estimate of the peak,
or the actual peak, in kilowatts, of the internal non-Federal
generation.
2.5.4. Provision of Ancillary Services by Others
Customers for which Ancillary Services are made available as
specified above, must inform Southwestern by written notice of the
Ancillary Services which they do not intend to take and purchase
from Southwestern, and of their election to provide all or part of
such Ancillary Services from their own resources or from a third
party.
Subject to Southwestern's approval of the ability of such resources
or third parties to meet Southwestern's technical and operational
requirements for provision of such Ancillary Services, the Customer
may change the Ancillary Services which it takes from Southwestern
and/or from other sources at the beginning of any month upon the
greater of 60 days notice or upon completion of any necessary
equipment modifications necessary to accommodate such change;
Provided, That, if the Customer chooses not to take Regulation and
Frequency Response Service, which includes the associated Regulation
Purchased Adder, the Customer must pursue these services from a
different host Balancing Authority; thereby moving all metered loads
and resources from Southwestern's Balancing Authority Area to the
Balancing Authority Area of the new host Balancing Authority. Until
such time as that meter reconfiguration is accomplished, the
Customer will be charged for the Regulation and Frequency Response
Service and applicable Adder then in effect. The Customer must
notify Southwestern by July 1 of this choice, to be effective the
subsequent calendar year.
2.5.5. Regulation Purchased Adder
Southwestern has determined the amount of energy used from storage
to provide Regulation and Frequency Response Service in order to
meet Southwestern's Balancing Authority Area requirements. The
replacement value of such energy used shall be recovered through the
Regulation Purchased Adder. The Regulation Purchased Adder during
the time period of January 1 through December 31 of the current
calendar year is based on the average annual use of energy from
storage \1\ for Regulation and Frequency Response Service and
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies.
\1\ The average annual use of energy from storage for Regulation
and Frequency Response Service is based on Southwestern studies.
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The Regulation Purchased Adder will be phased in over a period of
four (4) years as follows:
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Regulation Purchased Adder for
the Incremental Replacement
Year Value of Energy Used from
Storage
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2014.................................... \1/4\ of the average annual
use of energy from storage x
2014 Purchased Power price.
2015.................................... \1/2\ of the average annual
use of energy from storage x
2015 Purchased Power price.
2016.................................... \3/4\ of the average annual
use of energy from storage x
2016 Purchased Power price.
2017 and thereafter..................... The total average annual use
of energy from storage x the
applicable Purchased Power
price.
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[[Page 44776]]
2.5.5.1. Applicability of Regulation Purchased Adder
The replacement value of the estimated annual use of energy from
storage for Regulation and Frequency Response Service shall be
recovered by Customers located within Southwestern's Balancing
Authority Area on a non-coincident peak ratio share basis, divided
into twelve equal monthly payments, in accordance with the formula
in Section 2.4.5.2.
If the Regulation Purchased Adder is determined and applied under
Southwestern's Rate Schedule NFTS-13, then it shall not be applied
here.
2.5.5.2. Procedure for Determining Regulation Purchased Adder
Unless otherwise specified by contract, the Regulation Purchased
Adder for an individual Customer shall be based on the following
formula rate, calculated to include the replacement value of the
estimated annual use of energy from storage by Southwestern for
Regulation and Frequency Response Service.
RPA = The Regulation Purchased Adder for an individual Customer per
month, which is as follows:
[(L Customer / L Total) x RP Total]
/ 12
with the factors defined as follows:
L Customer = The sum in MW of the following three
factors:
(1) The Customer's highest metered load plus generation used to
serve the Customer's load that is accounted for through a reduction
in the Customer's metered load (referred to as `generation behind
the meter') during the previous calendar year, and
(2) The Customer's highest rate of Scheduled Exports \2\ during
the previous calendar year, and
(3) The Customer's highest rate of Scheduled Imports \2\ during
the previous calendar year.
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\2\ Scheduled Exports and Scheduled Imports are transactions,
such as sales and purchases respectively, which are in addition to a
Customer's metered load that contribute to Southwestern's Balancing
Authority Area need for regulation.
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L Total = The sum of all L Customer factors
for all Customers that were inside Southwestern's Balancing
Authority Area at the beginning of the previous calendar year in MW.
RP Total = The ``net'' cost in dollars and cents based on
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies
multiplied by the average annual use of energy from storage, as
provided for in the table in Section 2.4.5, to support
Southwestern's ability to regulate within its Balancing Authority
Area. The ``net'' cost in dollars and cents shall be adjusted by
subtracting the product of the quantity of such average annual use
of energy from storage in MWh and Southwestern's highest rate in
dollars per MWh for Supplemental Peaking Energy during the previous
calendar year.
For Customers that have aggregated their load, resources, and
scheduling into a single node by contract within Southwestern's
Balancing Authority Area, the individual Customer's respective
Regulation Purchased Adder shall be that Customer's ratio share of
the Regulation Purchased Adder established for the node. Such ratio
share shall be determined for the Customer on a non-coincident basis
and shall be calculated for the Customer from their highest metered
load plus generation behind the meter.
2.5.6. Energy Imbalance Service Limitations
Energy Imbalance Service primarily applies to deliveries of power
and energy which are required to satisfy a Customer's load. As Hydro
Peaking Power and associated energy are limited by contract, the
Energy Imbalance Service bandwidth specified for Non-Federal
Transmission Service does not apply to deliveries of Hydro Peaking
Power, and therefore Energy Imbalance Service is not charged on such
deliveries. Customers who consume a capacity of Hydro Peaking Power
greater than their Peaking Contract Demand may be subject to a
Capacity Overrun Penalty.
3.
Hydro Peaking Power Penalties, Terms, and Conditions
3.2. Capacity Overrun Penalty
3.2.1. Penalty Charge for Capacity Overrun
For each hour during which Hydro Peaking Power was provided at a
rate greater than that to which the Customer is entitled, the
Customer will be charged a Capacity Overrun Penalty at the following
rates:
------------------------------------------------------------------------
Months Associated With Charge Rate per Kilowatt
------------------------------------------------------------------------
March, April, May, October, November, December....... $0.15
January, February, June, July, August, September..... 0.30
------------------------------------------------------------------------
3.2.2. Applicability of Capacity Overrun Penalty
Customers which have loads within Southwestern's Balancing Authority
Area are obligated by contract to provide resources, over and above
the Hydro Peaking Power and associated energy purchased from
Southwestern, sufficient to meet their loads. A Capacity Overrun
Penalty shall be applied only when the formulas provided in
Customers' respective Power Sales Contracts indicate an overrun on
Hydro Peaking Power, and investigation determines that all
resources, both firm and non-firm, which were available at the time
of the apparent overrun were insufficient to meet the Customer's
load.
3.3. Energy Overrun Penalty
3.3.1. Penalty Charge for Energy Overrun
$0.1034 per kilowatthour for each kilowatthour of overrun.
3.3.2. Applicability of Energy Overrun Penalty
By contract, the Customer is subject to limitations on the maximum
amounts of Peaking Energy which may be scheduled under the
Customer's Power Sales Contract. When the Customer schedules an
amount in excess of such maximum amounts, such Customer is subject
to the Energy Overrun Penalty.
3.4. Power Factor Penalty
3.4.1. Requirements Related to Power Factor
Any Customer served from facilities owned by or available by
contract to Southwestern will be required to maintain a power factor
of not less than 95 percent and will be subject to the following
provisions.
3.4.2. Determination of Power Factor
The power factor will be determined for all Demand Periods and shall
be calculated under the formula:
[GRAPHIC] [TIFF OMITTED] TN26SE17.000
with the factors defined as follows:
PF = The power factor for any Demand Period of the month.
kWh = The total quantity of energy which is delivered during such
Demand Period to the point of delivery or interconnection in
accordance with Section 3.3.4.
rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs)
delivered during such Demand Period to the point of delivery or
interconnection in accordance with Section 3.3.4.
3.4.3. Penalty Charge for Power Factor
The Customer shall be assessed a penalty for all Demand Periods of a
month where the power factor is less than 95 percent lagging. For
any Demand Period during a particular
[[Page 44777]]
month such penalty shall be in accordance with the following
formula:
C = D x (0.95-LPF) x $0.10
with the factors defined as follows:
C = The charge in dollars to be assessed for any particular Demand
Period of such month that the determination of power factor ``PF''
is calculated to be less than 95 percent lagging.
D = The Customer's demand in kilowatts at the point of delivery for
such Demand Period in which a low power factor was calculated.
LPF = The lagging power factor, if any, determined by the formula
``PF'' for such Demand Period.
If C is negative, then C = zero (0).
3.4.4. Applicability of Power Factor Penalty
The Power Factor Penalty is applicable to radial interconnections
with the System of Southwestern. The total Power Factor Penalty for
any month shall be the sum of all charges ``C'' for all Demand
Periods of such month. No penalty is assessed for leading power
factor. Southwestern, in its sole judgment and at its sole option,
may determine whether power factor calculations should be applied to
(i) a single physical point of delivery, (ii) a combination of
physical points of delivery where a Customer has a single,
electrically integrated load, (iii) or interconnections. The general
criteria for such decision shall be that, given the configuration of
the Customer's and Southwestern's systems, Southwestern will
determine, in its sole judgment and at its sole option, whether the
power factor calculation more accurately assesses the detrimental
impact on Southwestern's system when the above formula is calculated
for a single physical point of delivery, a combination of physical
points of delivery, or for an interconnection as specified by an
Interconnection Agreement.
Southwestern, at its sole option, may reduce or waive Power Factor
Penalties when, in Southwestern's sole judgment, low power factor
conditions were not detrimental to the System of Southwestern due to
particular loading and voltage conditions at the time the power
factor dropped below 95 percent lagging.
4. Hydro Peaking Power Miscellaneous Rates, Terms, and Conditions
4.2. Real Power Losses
Customers are required to self-provide all Real Power Losses for
non-Federal energy transmitted by Southwestern on behalf of such
Customers under the provisions detailed below.
Real Power Losses are computed as four (4) percent of the total
amount of non-Federal energy transmitted by Southwestern. The
Customer's monthly Real Power Losses are computed each month on a
megawatthour basis as follows:
ML = 0.04 x NFE
with the factors defined as follows:
ML = The total monthly loss energy, rounded to the nearest
megawatthour, to be scheduled by a Customer for receipt by
Southwestern for Real Power Losses associated with non-Federal
energy transmitted on behalf of such Customer; and
NFE = The amount of non-Federal energy that was transmitted by
Southwestern on behalf of a Customer during a particular month.
The Customer must schedule or cause to be scheduled to Southwestern,
Real Power Losses for which it is responsible subject to the
following conditions:
4.2.1. The Customer shall schedule and deliver Real Power Losses
back to Southwestern during the second month after they were
incurred by Southwestern in the transmission of the Customer's non-
Federal power and energy over the System of Southwestern unless such
Customer has accounted for Real Power Losses as part of a metering
arrangement with Southwestern.
4.2.2. On or before the twentieth day of each month,
Southwestern shall determine the amount of non-Federal loss energy
it provided on behalf of the Customer during the previous month and
provide a written schedule to the Customer setting forth hour-by-
hour the quantities of non-Federal energy to be delivered to
Southwestern as losses during the next month.
4.2.3. Real Power Losses not delivered to Southwestern by the
Customer, according to the schedule provided, during the month in
which such losses are due shall be billed by Southwestern to the
Customer to adjust the end-of-month loss energy balance to zero (0)
megawatthours and the Customer shall be obliged to purchase such
energy at the following rates:
------------------------------------------------------------------------
Rate per
Months associated with charge kilowatthour
------------------------------------------------------------------------
March, April, May, October, November, December....... $0.15
January, February, June, July, August, September..... $0.30
------------------------------------------------------------------------
4.2.4. Real Power Losses delivered to Southwestern by the
Customer in excess of the losses due during the month shall be
purchased by Southwestern from the Customer at a rate per
megawatthour equal to Southwestern's rate per megawatthour for
Supplemental Peaking Energy, as set forth in Southwestern's then-
effective Rate Schedule for Hydro Peaking Power to adjust such
hourly end-of-month loss energy balance to zero (0) megawatthours.
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE NFTS-13 \1\ **
---------------------------------------------------------------------------
\1\ Supersedes Rate Schedule NFTS-13.
** Extended through September 30, 2019 by approval of Rate Order
No. SWPA-72 by the Deputy Secretary of Energy.
---------------------------------------------------------------------------
WHOLESALE RATES FOR NON-FEDERAL TRANSMISSION/INTERCONNECTION FACILITIES
SERVICE
Effective
During the period January 1, 2017, through September 30, 2019 **, in
accordance with Federal Energy Regulatory Commission order issued
March 9, 2017, Docket No. EF14-1-001.
Available
In the region of the System of Southwestern.
Applicable
To Customers which have executed Service Agreements with
Southwestern for the transmission of non-Federal power and energy
over the System of Southwestern or for its use for interconnections.
Southwestern will provide services over those portions of the System
of Southwestern in which the Administrator, Southwestern, in his or
her sole judgment, has determined that uncommitted transmission and
transformation capacities in the System of Southwestern are and will
be available in excess of the capacities required to market Federal
power and energy pursuant to Section 5 of the Flood Control Act of
1944 (58 Stat. 887,890; 16 U.S.C. 825s).
Character and Conditions of Service
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage(s), at the point(s) specified by
Service Agreement or Transmission Service Transaction.
1.
Definitions of Terms
1.2. Ancillary Services
The services necessary to support the transmission of capacity and
energy from resources to loads while maintaining reliable operation
of the System of Southwestern in accordance with good utility
practice, which include the following:
1.2.1. Scheduling, System Control, and Dispatch Service
is provided by Southwestern as Balancing Authority Area operator and
is in regard to interchange and load-match scheduling and related
system control and dispatch functions.
[[Page 44778]]
1.2.2. Reactive Supply and Voltage Control from Generation Sources
Service
is provided at transmission facilities in the System of Southwestern
to produce or absorb reactive power and to maintain transmission
voltages within specific limits.
1.2.3. Regulation and Frequency Response Service
is the continuous balancing of generation and interchange resources
accomplished by raising or lowering the output of on-line generation
as necessary to follow the moment-by-moment changes in load and to
maintain frequency within a Balancing Authority Area.
1.2.4. Spinning Operating Reserve Service
maintains generating units on-line, but loaded at less than maximum
output, which may be used to service load immediately when
disturbance conditions are experienced due to a sudden loss of
generation or load.
1.2.5. Supplemental Operating Reserve Service
provides an additional amount of operating reserve sufficient to
reduce Area Control Error to zero within 10 minutes following loss
of generating capacity which would result from the most severe
single contingency.
1.2.6. Energy Imbalance Service
corrects for differences over a period of time between schedules and
actual hourly deliveries of energy to a load. Energy delivered or
received within the authorized bandwidth for this service is
accounted for as an inadvertent flow and is returned to the
providing party by the receiving party in accordance with standard
utility practice or a contractual arrangement between the parties.
1.3. Customer
The entity which is utilizing and/or purchasing services from
Southwestern pursuant to this Rate Schedule.
1.4. Demand Period
The period of time used to determine maximum integrated rates of
delivery for the purpose of power accounting which is the 60-minute
period that begins with the change of hour.
1.5. Firm Point-to-Point Transmission Service
Transmission service reserved on a firm basis between specific
points of receipt and delivery pursuant to either a Firm
Transmission Service Agreement or to a Transmission Service
Transaction.
1.6. Interconnection Facilities Service
A service that provides for the use of the System of Southwestern to
deliver energy and/or provide system support at an interconnection.
1.7. Network Integration Transmission Service
Transmission service provided under Part III of Southwestern's Open
Access Transmission Service Tariff which provides the Customer with
firm transmission service for the delivery of capacity and energy
from the Customer's resources to the Customer's load.
1.8. Interconnection Facilities Service
A service that provides for the use of the System of Southwestern to
deliver energy and/or provide system support at an interconnection.
1.9. Network Integration Transmission Service
Transmission service provided under Part III of Southwestern's Open
Access Transmission Service Tariff which provides the Customer with
firm transmission service for the delivery of capacity and energy
from the Customer's resources to the Customer's load.
1.10. Non-Firm Point-to-Point Transmission Service
Transmission service reserved on a non-firm basis between specific
points of receipt and delivery pursuant to a Transmission Service
Transaction.
1.11. Point of Delivery
Either a single physical point to which electric power and energy
are delivered from the System of Southwestern, or a specified set of
delivery points which together form a single, electrically
integrated load.
1.12. Secondary Transmission Service
Service that is associated with Firm Point-to-Point Transmission
Service and Network Integration Transmission Service. For Firm
Point-to-Point Transmission Service, it consists of transmission
service provided on an as-available, non-firm basis, scheduled
within the limits of a particular capacity reservation for
transmission service, and scheduled from points of receipt, or to
points of delivery, other than those designated in a Long-Term Firm
Transmission Service Agreement or a Transmission Service Transaction
for Firm Point-to-Point Transmission Service. For Network
Integration Transmission Service, Secondary Transmission Service
consists of transmission service provided on an as-available, non-
firm basis, from resources other than the network resources
designated in a Network Transmission Service Agreement, to meet the
Customer's network load. The charges for Secondary Transmission
Service, other than Ancillary Services, are included in the
applicable capacity charges for Firm Point-to-Point Transmission
Service and Network Integration Transmission Service.
1.13. Service Agreement
A contract executed between a Customer and Southwestern for the
transmission of non-Federal power and energy over the System of
Southwestern or for interconnections which include the following:
1.13.1. Firm Transmission Service Agreement
provides for reserved transmission capacity on a firm basis, for a
particular point-to-point delivery path.
1.13.2. Interconnection Agreement
provides for the use of the System of Southwestern and recognizes
the exchange of mutual benefits for such use or provides for
application of a charge for Interconnection Facilities Service.
1.13.3. Network Transmission Service Agreement
provides for the Customer to request firm transmission service for
the delivery of capacity and energy from the Customer's network
resources to the Customer's network load, for a period of one year
or more.
1.13.4. Non-Firm Transmission Service Agreement
provides for the Customer to request transmission service on a non-
firm basis.
1.14. Service Request
The request made under a Transmission Service Agreement through the
Southwest Power Pool, Inc. (hereinafter ``SPP'') Open Access Same-
Time Information System (hereinafter ``OASIS'') for reservation of
transmission capacity over a particular point-to-point delivery path
for a particular period. The Customer must submit hourly schedules
for actual service in addition to the Service Request.
1.15. System of Southwestern
The transmission and related facilities owned by Southwestern, and/
or the generation, transmission, and related facilities owned by
others, the capacity of which, by contract, is available to and
utilized by Southwestern to satisfy its contractual obligations to
the Customer.
1.16. Transmission Service Transaction
A Service Request that has been approved by SPP.
1.17. Uncontrollable Force
Any force which is not within the control of the party affected,
including, but not limited to failure of water supply, failure of
facilities, flood, earthquake, storm, lightning, fire, epidemic,
riot, civil disturbance, labor disturbance, sabotage, war, act of
war, terrorist acts, or restraint by court of general jurisdiction,
which by exercise of due diligence and foresight such party could
not reasonably have been expected to avoid.
2.
Wholesale Rates, Terms, and Conditions for Firm Point-to-Point
Transmission Service, Non-Firm Point-to-Point Transmission Service,
Network Integration Transmission Service, and Interconnection
Facilities Service
2.2. Firm Point-to-Point Transmission Service Rates, Terms, and
Conditions
2.2.1. Monthly Capacity Charge for Firm Point-to-Point Transmission
Service
$1.48 per kilowatt of transmission capacity reserved in increments
of one month of service or invoiced in accordance with a longer term
agreement.
2.2.2. Weekly Capacity Charge for Firm Point-to-Point Transmission
Service
$0.370 per kilowatt of transmission capacity reserved in increments
of one week of service.
[[Page 44779]]
2.2.3. Daily Capacity Charge for Firm Point-to-Point Transmission
Service
$0.0673 per kilowatt of transmission capacity reserved in increments
of one day of service.
2.2.4. Services Associated with Capacity Charge for Firm Point-to-Point
Transmission Service
The capacity charge for Firm Point-to-Point Transmission Service
includes Secondary Transmission Service, but does not include
charges for Ancillary Services associated with actual schedules.
2.2.5. Applicability of Capacity Charge for Firm Point-to-Point
Transmission Service
Capacity charges for Firm Point-to-Point Transmission Service are
applied to quantities reserved by contract under a Firm Transmission
Service Agreement or in accordance with a Transmission Service
Transaction.
A Customer, unless otherwise specified by contract, will be assessed
capacity charges on the greatest of (1) the highest metered demand
at any particular Point of Delivery during a particular month,
rounded up to the nearest whole megawatt, or (2) the highest metered
demand recorded at such Point of Delivery during any of the previous
11 months, rounded up to the nearest whole megawatt, or (3) the
capacity reserved by contract; which amount shall be considered such
Customer's reserved capacity. Secondary Transmission Service for
such Customer shall be limited during any month to the most recent
metered demand on which that Customer is billed or to the capacity
reserved by contract, whichever is greater.
2.3. Non-Firm Point-to-Point Transmission Service Rates, Terms, and
Conditions
2.3.1. Monthly Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge for Firm Point-to-Point
Transmission Service reserved in increments of one month.
2.3.2. Weekly Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge divided by 4 for Firm
Point-to-Point Transmission Service reserved in increments of one
week.
2.3.3. Daily Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge divided by 22 for Firm
Point-to-Point Transmission Service reserved in increments of one
day.
2.3.4. Hourly Capacity Charge for Non-Firm Point-to-Point Transmission
Service
80 percent of the monthly capacity charge divided by 352 for Firm
Point-to-Point Transmission Service reserved in increments of one
hour.
2.3.5. Applicability of Charges for Non-Firm Point-to-Point
Transmission Service
Capacity charges for Non-Firm Point-to-Point Transmission Service
are applied to quantities reserved under a Transmission Service
Transaction, and do not include charges for Ancillary Services.
2.4. Network Integration Transmission Service Rates, Terms, and
Conditions
2.4.1. Annual Revenue Requirement for Network Integration Transmission
Service
$15,533,800.
2.4.2. Monthly Revenue Requirement for Network Integration Transmission
Service
$1,294,483.
2.4.3. Net Capacity Available for Network Integration Transmission
Service
872,000 kilowatts.
2.4.4. Monthly Capacity Charge for Network Integration Transmission
Service
$1.48 per kilowatt of Network Load (charge derived from $1,294,483 /
872,000 kilowatts).
2.4.5. Applicability of Charges for Network Integration Transmission
Service
Network Integration Transmission Service is available only for
deliveries of non-Federal power and energy, and is applied to the
Customer utilizing such service exclusive of any deliveries of
Federal power and energy. The capacity on which charges for any
particular Customer utilizing this service is determined on the
greatest of (1) the highest metered demand at any particular point
of delivery during a particular month, rounded up to the nearest
whole megawatt, or (2) the highest metered demand recorded at such
point of delivery during any of the previous 11 months, rounded up
to the nearest whole megawatt.
For a Customer taking Network Integration Transmission Service who
is also taking delivery of Federal Power and Energy, the highest
metered demand shall be determined by subtracting the energy
scheduled for delivery of Federal Power and Energy for any hour from
the metered demand for such hour.
Secondary transmission Service for a Customer shall be limited
during any month to the most recent highest metered demand on which
such Customer is billed. Charges for Ancillary Services shall also
be assessed.
2.4.6. Procedure for Determining SPP Open Access Transmission Tariff
Network Integration Transmission Service Annual Revenue Requirement
The SPP Open Access Transmission Tariff Network Integration
Transmission Service Annual Revenue Requirement shall be based on
the following formula which shall be calculated when a Customer
transitions from a Service Agreement to an agreement for Network
Integration Transmission Service under the SPP Open Access
Transmission Tariff.
SPP NITS ARR = Southwestern's SPP Network Integration Transmission
Service Annual Revenue Requirement, which is as follows:
(SPP NITS Capacity/Southwestern NITS Capacity) x Southwestern NITS
ARR
with the factors defined as follows:
SPP NITS Capacity = The capacity on the System of Southwestern
utilized for SPP Network Integration Transmission Service which
shall be based on the currently approved Power Repayment Studies.
Southwestern NITS Capacity = Net Capacity Available for Network
Integration Transmission Service on the System of Southwestern as
specified in Section 2.3.3.
Southwestern NITS ARR = Southwestern's Annual Revenue Requirement
for Network Integration Transmission Service as specified in Section
2.3.1.
2.5. Interconnection Facilities Service Rates, Terms, and Conditions
2.5.1. Monthly Capacity Charge for Interconnection Facilities Service
$1.48 per kilowatt.
2.5.2. Applicability of Capacity Charge for Interconnection Facilities
Service
Any Customer that requests an interconnection from Southwestern
which, in Southwestern's sole judgment and at its sole option, does
not provide commensurate benefits or compensation to Southwestern
for the use of its facilities shall be assessed a capacity charge
for Interconnection Facilities Service. For any month, charges for
Interconnection Facilities Service shall be assessed on the greater
of (1) that month's actual highest metered demand, or (2) the
highest metered demand recorded during the previous eleven months,
as metered at the interconnection. The use of Interconnection
Facilities Service will be subject to power factor provisions as
specified in this Rate Schedule. The interconnection customer shall
also schedule and deliver Real Power Losses pursuant to the
provisions of this Rate Schedule based on metered flow through the
interconnection where Interconnection Facilities Services is
assessed.
2.6. Transformation Service Rates, Terms, and Conditions
2.6.1. Monthly Capacity Charge for Transformation Service
$0.46 per kilowatt will be assessed for capacity used to deliver
energy at any point of delivery at which Southwestern provides
transformation service for deliveries at voltages of 69 kilovolts or
less from higher voltage facilities.
2.6.2. Applicability of Capacity Charge for Transformation Service
Unless otherwise specified by contract, for any particular month, a
charge for transformation service will be assessed on the greater of
(1) that month's highest metered demand, or (2) the highest metered
demand recorded during the previous 11 months, at any point of
delivery. For the purpose of this Rate Schedule, the highest metered
demand will be based on all deliveries, of both Federal and non-
Federal energy, from the System of Southwestern, at such point
during such month.
[[Page 44780]]
2.7. Ancillary Services Rates, Terms, and Conditions
2.7.1. Capacity Charges for Ancillary Services
2.7.1.1. Scheduling, System Control, and Dispatch Service
Monthly rate of $0.09 per kilowatt of transmission capacity reserved
in increments of one month of service or invoiced in accordance with
a Long-Term Firm Transmission Service Agreement or Network
Transmission Service Agreement.
Weekly rate of $0.023 per kilowatt of transmission capacity reserved
in increments of one week of service.
Daily rate of $0.0041 per kilowatt of transmission capacity reserved
in increments of one day of service.
Hourly rate of $0.00026 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.7.1.2. Reactive Supply and Voltage Control from Generation Sources
Service
Monthly rate of $0.04 per kilowatt of transmission capacity reserved
in increments of one month of service or invoiced in accordance with
a Long-Term Firm Transmission Service Agreement or Network
Transmission Service Agreement.
Weekly rate of $0.010 per kilowatt of transmission capacity reserved
in increments of one week of service.
Daily rate of $0.0018 per kilowatt of transmission capacity reserved
in increments of one day of service.
Hourly rate of $0.00011 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.7.1.3. Regulation and Frequency Response Service
Monthly rate of $0.07 per kilowatt of transmission capacity reserved
in increments of one month of service or invoiced in accordance with
a Long-Term Firm Transmission Service Agreement or Network
Transmission Service Agreement plus the Regulation Purchased Adder
as defined in Section 2.6.5 of this Rate Schedule.
Weekly rate of $0.018 per kilowatt of transmission capacity reserved
in increments of one week of service plus the Regulation Purchased
Adder as defined in Section 2.6.5 of this Rate Schedule.
Daily rate of $0.0032 per kilowatt of transmission capacity reserved
in increments of one day of service plus the Regulation Purchased
Adder as defined in Section 2.6.5 of this Rate Schedule.
Hourly rate of $0.00020 per kilowatt of transmission energy
delivered as non-firm transmission service plus the Regulation
Purchased Adder as defined in Section 2.6.5 of this Rate Schedule.
2.7.1.4. Spinning Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of transmission capacity
reserved in increments of one month of service or invoiced in
accordance with a Long-Term Firm Transmission Service Agreement or
Network Transmission Service Agreement.
Weekly rate of $0.00365 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.00066 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00004 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.7.1.5. Supplemental Operating Reserve Service
Monthly rate of $0.0146 per kilowatt of transmission capacity
reserved in increments of one month of service or invoiced in
accordance with a Long-Term Firm Transmission Service Agreement or
Network Transmission Service Agreement.
Weekly rate of $0.00365 per kilowatt of transmission capacity
reserved in increments of one week of service.
Daily rate of $0.00066 per kilowatt of transmission capacity
reserved in increments of one day of service.
Hourly rate of $0.00004 per kilowatt of transmission energy
delivered as non-firm transmission service.
2.7.1.6. Energy Imbalance Service
$0.0 per kilowatt for all reservation periods.
2.7.2. Availability of Ancillary Services
Scheduling, System Control, and Dispatch Service and Reactive Supply
and Voltage Control from Generation Sources Service are available
for all transmission services in and from the System of Southwestern
and shall be provided by Southwestern. Regulation and Frequency
Response Service and Energy Imbalance Service are available only for
deliveries of power and energy to load within Southwestern's
Balancing Authority Area, and shall be provided by Southwestern,
unless, subject to Southwestern's approval, they are provided by
others. Spinning Operating Reserve Service and Supplemental
Operating Reserve Service are available only for deliveries of power
and energy generated by resources located within Southwestern's
Balancing Authority Area and shall be provided by Southwestern,
unless, subject to Southwestern's approval, they are provided by
others.
2.7.3. Applicability of Charges for Ancillary Services
Charges for all Ancillary Services are applied to the transmission
capacity reserved or network transmission service taken by the
Customer in accordance with the rates listed above when such
services are provided by Southwestern.
The charges for Ancillary Services are considered to include
Ancillary Services for any Secondary Transmission Service, except in
cases where Ancillary Services identified in Sections 2.6.1.3
through 2.6.1.6 of this Rate Schedule are applicable to a
Transmission Service Transaction of Secondary Transmission Service,
but are not applicable to the transmission capacity reserved under
which Secondary Transmission Service is provided. When charges for
Ancillary Services are applicable to Secondary Transmission Service,
the charge for the Ancillary Service shall be the hourly rate
applied to all energy transmitted utilizing the Secondary
Transmission Service.
2.7.4. Provision of Ancillary Services by Others
Customers for which Ancillary Services identified in Sections
2.6.1.3 through 2.6.1.6 of this Rate Schedule are made available as
specified above must inform Southwestern by written notice of the
Ancillary Services which they do not intend to take and purchase
from Southwestern, and of their election to provide all or part of
such Ancillary Services from their own resources or from a third
party. Such notice requirements also apply to requests for
Southwestern to provide Ancillary Services when such services are
available as specified above.
Subject to Southwestern's approval of the ability of such resources
or third parties to meet Southwestern's technical and operational
requirements for provision of such Ancillary Services, the Customer
may change the Ancillary Services which it takes from Southwestern
and/or from other sources at the beginning of any month upon the
greater of 60 days written notice or upon the completion of any
necessary equipment modifications necessary to accommodate such
change; Provided, That, if the Customer chooses not to take
Regulation and Frequency Response Service, which includes the
associated Regulation Purchased Adder, the Customer must pursue
these services from a different host Balancing Authority; thereby
moving all metered loads and resources from Southwestern's Balancing
Authority Area to the Balancing Authority Area of the new host
Balancing Authority. Until such time as that meter reconfiguration
is accomplished, the Customer will be charged for the Regulation and
Frequency Response Service and applicable Adder then in effect. The
Customer must notify Southwestern by July 1 of this choice, to be
effective the subsequent calendar year.
2.7.5. Regulation Purchased Adder
Southwestern has determined the amount of energy used from storage
to provide Regulation and Frequency Response Service in order to
meet Southwestern's Balancing Authority Area requirements. The
replacement value of such energy used shall be recovered through the
Regulation Purchased Adder. The Regulation Purchased Adder during
the time period of January 1 through December 31 of the current
calendar year is based on the average annual use of energy from
storage \1\ for Regulation and Frequency Response Service and
[[Page 44781]]
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies.
\1\ The average annual use of energy from storage for Regulation
and Frequency Response Service is based on Southwestern studies.
---------------------------------------------------------------------------
The Regulation Purchased Adder will be phased in over a period of
four (4) years as follows:
------------------------------------------------------------------------
Regulation Purchased Adder for
the Incremental Replacement
Year Value of Energy Used from
Storage
------------------------------------------------------------------------
2014.................................... \1/4\ of the average annual
use of energy from storage x
2014 Purchased Power price.
2015.................................... \1/2\ of the average annual
use of energy from storage x
2015 Purchased Power price.
2016.................................... \3/4\ of the average annual
use of energy from storage x
2016 Purchased Power price.
2017 and thereafter..................... The total average annual use
of energy from storage x the
applicable Purchased Power
price.
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2.7.5.1. Applicability of Regulation Purchased Adder
The replacement value of the estimated annual use of energy from
storage for Regulation and Frequency Response Service shall be
recovered by Customers located within Southwestern's Balancing
Authority Area on a non-coincident peak ratio share basis, divided
into twelve equal monthly payments, in accordance with the formula
in Section 2.6.5.2.
If the Regulation Purchased Adder is determined and applied under
Southwestern's Rate Schedule P-13, then it shall not be applied
here.
2.7.5.2. Procedure for Determining Regulation Purchased Adder
Unless otherwise specified by contract, the Regulation Purchased
Adder for an individual Customer shall be based on the following
formula rate, calculated to include the replacement value of the
estimated annual use of energy from storage by Southwestern for
Regulation and Frequency Response Service.
RPA = The Regulation Purchased Adder for an individual Customer per
month, which is as follows:
[(L Customer / L Total) x RP Total
] / 12
with the factors defined as follows:
L Customer = The sum in MW of the following three
factors:
(1) The Customer's highest metered load plus generation used to
serve the Customer's load that is accounted for through a reduction
in the Customer's metered load (referred to as `generation behind
the meter') during the previous calendar year, and
(2) The Customer's highest rate of Scheduled Exports \2\ during the
previous calendar year, and
(3) The Customer's highest rate of Scheduled Imports \2\ during the
previous calendar year.
\2\ Scheduled Exports and Scheduled Imports are transactions,
such as sales and purchases respectively, which are in addition to a
Customer's metered load that contribute to Southwestern's Balancing
Authority Area need for regulation.
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L Total = The sum of all L Customer factors
for all Customers that were inside Southwestern's Balancing
Authority Area at the beginning of the previous calendar year in MW.
RP Total = The ``net'' cost in dollars and cents based on
Southwestern's estimated purchased power price for the corresponding
year from the most currently approved Power Repayment Studies
multiplied by the average annual use of energy from storage, as
provided for in the table in Section 2.6.5, to support
Southwestern's ability to regulate within its Balancing Authority
Area. The ``net'' cost in dollars and cents shall be adjusted by
subtracting the product of the quantity of such average annual use
of energy from storage in MWh and Southwestern's highest rate in
dollars per MWh for Supplemental Peaking Energy during the previous
calendar year.
For Customers that have aggregated their load, resources, and
scheduling into a single node by contract within Southwestern's
Balancing Authority Area, the individual Customer's respective
Regulation Purchased Adder shall be that Customer's ratio share of
the Regulation Purchased Adder established for the node. Such ratio
share shall be determined for the Customer on a non-coincident basis
and shall be calculated for the Customer from their highest metered
load plus generation behind the meter.
2.7.6. Energy Imbalance Service Limitations
Energy Imbalance Service is authorized for use only within a
bandwidth of 1.5 percent of the actual requirements of
the load at a particular point of delivery, for any hour, compared
to the resources scheduled to meet such load during such hour.
Deviations which are greater than 1.5 percent, but
which are less than 2,000 kilowatts, are considered to
be within the authorized bandwidth. Deviations outside the
authorized bandwidth are subject to a Capacity Overrun Penalty.
Energy delivered or received within the authorized bandwidth for
this service is accounted for as an inadvertent flow and will be
netted against flows in the future. The inadvertent flow in any
given hour will only be offset with the flows in the corresponding
hour of a day in the same category. Unless otherwise specified by
contract, the two categories of days are weekdays and weekend days/
North American Electric Reliability Corporation holidays, and this
process will result in a separate inadvertent accumulation for each
hour of the two categories of days. The hourly accumulations in the
current month will be added to the hourly inadvertent balances from
the previous month, resulting in a month-end balance for each hour.
The Customer is required to adjust the scheduling of resources in
such a way as to reduce the accumulation towards zero. It is
recognized that the inadvertent hourly flows can be both negative
and positive, and that offsetting flows should deter a significant
accumulation of inadvertent. Unless otherwise specified by contract,
in the event any hourly month-end balance exceeds 12 MWhs, the
excess will be subject to Section 3.1 or Section 3.2 of this Rate
Schedule, depending on the direction of the accumulation.
3.
Non-Federal Transmission/Interconnection Facilities Service Penalties,
Terms, and Conditions
3.1. Capacity Overrun Penalty
3.1.1. Penalty Charge for Capacity Overrun
For each hour during which energy flows outside the authorized
bandwidth, the Customer will be obliged to purchase such energy at
the following rates:
------------------------------------------------------------------------
Months Associated With Charge Rate per Kilowatt
------------------------------------------------------------------------
March, April, May, October, November, December....... $0.15
January, February, June, July, August, September..... $0.30
------------------------------------------------------------------------
3.1.2. Applicability of Capacity Overrun Penalty
Customers who receive deliveries within Southwestern's Balancing
Authority Area are obligated to provide resources sufficient to meet
their loads. Such obligation is not related to the amount of
transmission capacity that such Customers may have reserved for
transmission service to a particular load. In the event that a
Customer underschedules its resources to serve its load, resulting
in a difference between
[[Page 44782]]
resources and actual metered load (adjusted for transformer losses
as applicable) outside the authorized bandwidth for Energy Imbalance
Service for any hour, then such Customer is subject to the Capacity
Overrun Penalty.
3.2. Unauthorized Use of Energy Imbalance Service by Overscheduling of
Resources
In the event that a Customer schedules greater resources than are
needed to serve its load, such that energy flows at rates beyond the
authorized bandwidth for the use of Energy Imbalance Service,
Southwestern retains such energy at no cost to Southwestern and with
no obligation to return such energy.
3.3. Power Factor Penalty
3.3.1. Requirements Related to Power Factor
Any Customer served from facilities owned by or available by
contract to Southwestern will be required to maintain a power factor
of not less than 95 percent and will be subject to the following
provisions.
3.3.2. Determination of Power Factor
The power factor will be determined for all Demand Periods and
shall be calculated under the formula:
[GRAPHIC] [TIFF OMITTED] TN26SE17.001
with the factors defined as follows:
PF = The power factor for any Demand Period of the month.
kWh = The total quantity of energy which is delivered during such
Demand Period to the point of delivery or interconnection in
accordance with Section 3.3.4.
rkVAh = The total quantity of reactive kilovolt-ampere-hours (kVARs)
delivered during such Demand Period to the point of delivery or
interconnection in accordance with Section 3.3.4.
3.3.3. Penalty Charge for Power Factor
The Customer shall be assessed a penalty for all Demand Periods of a
month where the power factor is less than 95 percent lagging. For
any Demand Period during a particular month such penalty shall be in
accordance with the following formula:
C = D x (0.95-LPF) x $0.10
with the factors defined as follows:
C = The charge in dollars to be assessed for any particular Demand
Period of such month that the determination of power factor ``PF''
is calculated to be less than 95 percent lagging.
D = The Customer's demand in kilowatts at the point of delivery for
such Demand Period in which a low power factor was calculated.
LPF = The lagging power factor, if any, determined by the formula
``PF'' for such Demand Period.
If C is negative, then C = zero (0).
3.3.4. Applicability of Power Factor Penalty
The Power Factor Penalty is applicable to radial interconnections
with the System of Southwestern. The total Power Factor Penalty for
any month shall be the sum of all charges ``C'' for all Demand
Periods of such month. No penalty is assessed for leading power
factor. Southwestern, in its sole judgment and at its sole option,
may determine whether power factor calculations should be applied to
(i) a single physical point of delivery, (ii) a combination of
physical points of delivery where a Customer has a single,
electrically integrated load, (iii) or interconnections. The general
criteria for such decision shall be that, given the configuration of
the Customer's and Southwestern's systems, Southwestern will
determine, in its sole judgment and at its sole option, whether the
power factor calculation more accurately assesses the detrimental
impact on Southwestern's system when the above formula is calculated
for a single physical point of delivery, a combination of physical
points of delivery, or for an interconnection as specified by an
Interconnection Agreement.
Southwestern, at its sole option, may reduce or waive Power Factor
Penalties when, in Southwestern's sole judgment, low power factor
conditions were not detrimental to the System of Southwestern due to
particular loading and voltage conditions at the time the power
factor dropped below 95 percent lagging.
4.
Non-Federal Transmission/Interconnection Facilities Service
Miscellaneous Rates, Terms, and Conditions
4.2. Real Power Losses
Customers are required to self-provide all Real Power Losses for
non-Federal energy transmitted by Southwestern on behalf of such
Customers under the provisions detailed below.
Real Power Losses are computed as four (4) percent of the total
amount of non-Federal energy transmitted by Southwestern. The
Customer's monthly Real Power Losses are computed each month on a
megawatthour basis as follows:
ML = 0.04 x NFE
with the factors defined as follows:
ML = The total monthly loss energy, rounded to the nearest
megawatthour, to be scheduled by a Customer for receipt by
Southwestern for Real Power Losses associated with non-Federal
energy transmitted on behalf of such Customer; and
NFE = The amount of non-Federal energy that was transmitted by
Southwestern on behalf of a Customer during a particular month.
The Customer must schedule or cause to be scheduled to Southwestern,
Real Power Losses for which it is responsible subject to the
following conditions:
4.2.1. The Customer shall schedule and deliver Real Power Losses
back to Southwestern during the second month after they were
incurred by Southwestern in the transmission of the Customer's non-
Federal power and energy over the System of Southwestern unless such
Customer has accounted for Real Power Losses as part of a metering
arrangement with Southwestern.
4.2.2. On or before the twentieth day of each month,
Southwestern shall determine the amount of non-Federal loss energy
it provided on behalf of the Customer during the previous month and
provide a written schedule to the Customer setting forth hour-by-
hour the quantities of non-Federal energy to be delivered to
Southwestern as losses during the next month.
4.2.3. Real Power Losses not delivered to Southwestern by the
Customer, according to the schedule provided, during the month in
which such losses are due shall be billed by Southwestern to the
Customer to adjust the end-of-month loss energy balance to zero (0)
megawatthours and the Customer shall be obliged to purchase such
energy at the following rates:
------------------------------------------------------------------------
Rate per
Months Associated With Charge Kilowatthour
------------------------------------------------------------------------
March, April, May, October, November, December....... $0.15
January, February, June, July, August, September..... $0.30
------------------------------------------------------------------------
4.2.4. Real Power Losses delivered to Southwestern by the
Customer in excess of the losses due during the month shall be
purchased by Southwestern from the Customer at a rate per
megawatthour equal to Southwestern's rate per megawatthour for
Supplemental Peaking Energy, as set forth in Southwestern's then-
effective Rate Schedule for Hydro Peaking Power to adjust such
hourly end-of-month loss energy balance to zero (0) megawatthours.
[[Page 44783]]
UNITED STATES DEPARTMENT OF ENERGY
SOUTHWESTERN POWER ADMINISTRATION
RATE SCHEDULE EE-13 \1\ **
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\1\ Supersedes Rate Schedule EE-11.
** Extended through September 30, 2019 by approval of Rate Order
No. SWPA-72 by the Deputy Secretary of Energy.
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WHOLESALE RATES FOR EXCESS ENERGY
Effective:
During the period October 1, 2013, through September 30, 2019 **, in
accordance with Federal Energy Regulatory Commission order issued
January 9, 2014, Docket No. EF14-1-000.
Available:
In the marketing area of Southwestern Power Administration
(Southwestern), described generally as the States of Arkansas,
Kansas, Louisiana, Missouri, Oklahoma, and Texas.
Applicable:
To electric utilities which, by contract, may purchase Excess Energy
from Southwestern.
Character and Conditions of Service:
Three-phase, alternating current, delivered at approximately 60
Hertz, at the nominal voltage(s) and at the point(s) of delivery
specified by contract.
1.
Wholesale Rates, Terms, and Conditions for Excess Energy
Excess Energy will be furnished at such times and in such amounts as
Southwestern determines to be available.
1.1. Transmission and Related Ancillary Services
Transmission service for the delivery of Excess Energy shall be the
sole responsibility of such customer purchasing Excess Energy.
1.2. Excess Energy Charge
$0.0094 per kilowatthour of Excess Energy delivered.
[FR Doc. 2017-20034 Filed 9-25-17; 8:45 am]
BILLING CODE 6450-01-P