24940 Federal Register / Vol. 77, No. 81 / Thursday, April 26, 2012 / Notices 

DEPARTMENT OF ENERGY 

Office of Energy Efficiency and 

Renewable Energy 

Energy Conservation Program for 

Consumer Products: Representative 

Average Unit Costs of Energy 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Notice. 

SUMMARY: In this notice, the U.S. 

Department of Energy (DOE) is 

forecasting the representative average 

unit costs of five residential energy 

sources for the year 2012 pursuant to 

the Energy Policy and Conservation Act. 

The five sources are electricity, natural 

gas, No. 2 heating oil, propane, and 

kerosene. 

DATES: The representative average unit 

costs of energy contained in this notice 

will become effective May 29, 2012 and 

will remain in effect until further notice. 

FOR FURTHER INFORMATION CONTACT: 

Mohammed Khan, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy Forrestal Building, 

Mail Station EE–2J 1000 Independence 

Avenue SW., Washington, DC 20585– 

0121, (202) 586–7892, 

Mohammed.Khan@ee.doe.gov. Francine 

Pinto, Esq. U.S. Department of Energy, 

Office of General Counsel Forrestal 

Building, Mail Station GC–72, 1000 

Independence Avenue SW., 

Washington, DC 20585–0103, (202) 586– 

7432, Francine.Pinto@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: Section 

323 of the Energy Policy and 

Conservation Act (Act) requires that 

DOE prescribe test procedures for the 

measurement of the estimated annual 

operating costs or other measures of 

energy consumption for certain 

consumer products specified in the Act. 

(42 U.S.C. 6293(b)(3)) These test 

procedures are found in Title 10 of the 

Code of Federal Regulations (CFR) part 

430, subpart B. 

Section 323(b)(3) of the Act requires 

that the estimated annual operating 

costs of a covered product be calculated 

from measurements of energy use in a 

representative average use cycle or 

period of use and from representative 

average unit costs of the energy needed 

to operate such product during such 

cycle. (42 U.S.C. 6293(b)(3)) The section 

further requires that DOE provide 

information to manufacturers regarding 

the representative average unit costs of 

energy. (42 U.S.C. 6293(b)(4)) This cost 

information should be used by 

manufacturers to meet their obligations 

under section 323(c) of the Act. Most 

notably, these costs are used to comply 

with Federal Trade Commission (FTC) 

requirements for labeling. 

Manufacturers are required to use the 

revised DOE representative average unit 

costs when the FTC publishes new 

ranges of comparability for specific 

covered products, 16 CFR part 305. 

Interested parties can also find 

information covering the FTC labeling 

requirements at http://www.ftc.gov/ 

appliances. 

DOE last published representative 

average unit costs of residential energy 

in a Federal Register notice entitled, 

‘‘Energy Conservation Program for 

Consumer Products: Representative 

Average Unit Costs of Energy’’, dated 

March 10, 2011, 76 FR 13168. 

May 29, 2012, the cost figures 

published in today’s notice will become 

effective and supersede those cost 

figures published on March 10, 2011. 

The cost figures set forth in today’s 

notice will be effective until further 

notice. 

New Paragraph DOE’s Energy 

Information Administration (EIA) has 

developed the 2012 representative 

average unit after-tax costs found in this 

notice. The representative average unit 

after-tax costs for electricity, natural gas, 

No. 2 heating oil, and propane are based 

on simulations used to produce the 

March, 2012, EIA Short-Term Energy 

Outlook. (EIA releases the Outlook 

monthly.) The representative average 

unit after-tax cost for kerosene is 

derived from its price relative to that of 

heating oil, based on the 2006–2010 

averages for these two fuels. The source 

for these price data is the March, 2012, 

Monthly Energy Review DOE/EIA– 

0035(2012/02). The Short-Term Energy 

Outlook and the Monthly Energy Review 

are available on the EIA Web site at 

http://www.eia.doe.gov. Propane prices 

are econometric modeling projections 

based on historical Weekly Petroleum 

Status Report prices and Mont Belvieu 

spot prices. In prior Federal Register 

notices, the propane price was based on 

a previous 5-year average ratio with 

heating oil prices published in the 

Monthly Energy Review, but the 

propane price series was dropped in 

March 2011 due to budgetary issues. For 

more information on the two sources, 

contact the National Energy Information 

Center, Forrestal Building, EI–30, 1000 

Independence Avenue SW., 

Washington, DC 20585, (202) 586–8800, 

email: infoctr@eia.doe.gov. 

The 2012 representative average unit 

costs under section 323(b)(4) of the Act 

are set forth in Table 1, and will become 

effective May 29, 2012. They will 

remain in effect until further notice. 

Dated: Issued in Washington, DC, on April 

17, 2012. 

David Danielson, 

Assistant Secretary, Energy Efficiency and 

Renewable Energy. 

TABLE 1—REPRESENTATIVE AVERAGE UNIT COSTS OF ENERGY FOR FIVE RESIDENTIAL ENERGY SOURCES (2012) 

Type of energy Per million 

Btu 1 In commonly used terms As required by test procedure 

Electricity .................................................................................................. $34.70 11.84¢/kWh 2 3 ................................ $.1184/kWh 

Natural Gas .............................................................................................. 10.35 $1.059/therm 4 or $10.59/MCF 5 6 ... .00001035/Btu 

No. 2 Heating Oil ..................................................................................... 29.12 $4.04/gallon 7 .................................. .00002912/Btu 

Propane ................................................................................................... 28.03 $2.56/gallon 8 .................................. .00002803/Btu 

Kerosene .................................................................................................. 32.22 $4.35/gallon 9 .................................. .00003222/Btu 

Sources: U.S. Energy Information Administration, Short-Term Energy Outlook (March, 2012) and Monthly Energy Review (March, 2012), except for propane. 1Btu stands for British thermal units. 

2 kWh stands for kilowatt hour. 

3 1 kWh = 3,412 Btu. 

4 1 therm = 100,000 Btu. Natural gas prices include taxes. 

5 MCF stands for 1,000 cubic feet. 

6For the purposes of this table, one cubic foot of natural gas has an energy equivalence of 1,023 Btu. 

7For the purposes of this table, one gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu. 

8For the purposes of this table, one gallon of liquid propane has an energy equivalence of 91,333 Btu. 

9For the purposes of this table, one gallon of kerosene has an energy equivalence of 135,000 Btu. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 81 / Thursday, April 26, 2012 / Notices 24941 

1 Market-Based Rates for Wholesale Sales of 

Electric Energy, Capacity and Ancillary Services by 

Public Utilities, Order No. 697, FERC Stats. & Regs. 

¶ 31,252, at PP 882–893, App. D, clarified, 121 

FERC ¶ 61,260 (2007), at PP 9–10, App. D–1, order 

on reh’g, Order No. 697–A, FERC Stats. & Regs. ¶ 

31,268, at Apps. D, D–1, and D–2, clarified, 124 

FERC ¶ 61,055, order on reh’g, Order No. 697–B, 

FERC Stats. & Regs. ¶ 31,285 (2008), order on reh’g, 

Order No. 697–C, FERC Stats. & Regs. ¶ 31,291 

(2009), at PP 47–48 (amending in part App. D–2), 

order on reh’g, Order No. 697–D, FERC Stats. & 

Regs. ¶ 31,305 (2010), aff’d sub nom. Montana 

Consumer Counsel v. FERC, 659 F.3d 910 (9th Cir. 

2011). 

2Load-serving entities use transmission facilities 

owned and maintained by a transmission owner to 

secure energy and transmission service to serve the 

electrical demand and energy requirements of their 

end-use customers. 

3See Vantage Wind Energy LLC, Docket No. 

ER10–956–000 (May 26, 2010) (delegated letter 

order). 

4See Puget Sound Energy, Inc. Filing, Docket No. 

ER99–845–020 (filed Jun. 29, 2010). 

5 129 FERC ¶ 61,239 (2009). 

6Puget Sound Energy, Inc., 135 FERC ¶ 61,254 

(2011) (NW SIL Order). 

7See NW SIL Order, 135 FERC ¶ 61,254 at 

Appendix A. 

8We note that Puget accounted for these 

resources as part of its imports, which artificially 

increased the SIL values reported in Puget’s 

screens. Commission staff did not ask Puget to 

amend their screens, because Puget is a net 

purchaser and passes the screens in its balancing 

authority area irrespective of whether one applies 

the accepted net SIL values or the gross SIL values 

used by Puget. 

9Specifically, we refer to Puget’s Colstrip plant 

located in Montana and its firm power purchase 

agreements from Bonneville. This reporting by 

Puget did not affect Puget’s screen results. 

10Order No. 697, FERC Stats. & Regs. ¶ 31,252, 

at PP 62, 399, 408, 440. 

[FR Doc. 2012–10058 Filed 4–25–12; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

[Docket No. ER10–956–003] 

Vantage Wind Energy LLC; Order 

Accepting Updated Market Power 

Analysis and Providing Direction on 

Submitting Studies 

Before Commissioners: Jon 

Wellinghoff, Chairman; Philip D. 

Moeller, John R. Norris, and Cheryl A. 

LaFleur. 

1. In this order, the Commission 

accepts an updated market power 

analysis filed by Vantage Wind Energy 

LLC (Vantage Wind). As discussed 

below, the Commission concludes that 

Vantage Wind continues to satisfy the 

Commission’s standards for marketbased rate authority. Vantage Wind’s 

next updated market power analysis 

must be filed according to the regional 

schedule adopted in Order No. 697.1

2. Additionally in this order, the 

Commission provides further direction 

on the performance of the indicative 

screens. In the future, when filing 

updated market power analyses with the 

Commission, filers that are load-serving 

entities should account for their remote 

generation and long-term firm purchases 

as described below.2

Background 

3. On December 20, 2010, Vantage 

Wind filed an updated market power 

analysis in compliance with the regional 

reporting schedule adopted in Order No. 

697 and pursuant to the Commission’s 

order granting Vantage Wind authority 

to sell electric energy, capacity, and 

ancillary services at market-based rates.3

In performing the indicative screens, 

Vantage Wind states that it relied on the 

updated market power analysis filed by 

Puget Sound Energy, Inc. (Puget).4

4. Vantage Wind owns and operates 

90 megawatts (MW) of wind-powered 

generation facilities located near Kittias 

County, Washington. 

5. Vantage Wind is an indirect, 

wholly-owned subsidiary of Vantage 

Wind Holdings LLC (Vantage Holdings). 

Vantage Wind states that Vantage Class 

B Holdings LLC (VCB Holdings), an 

indirect, wholly-owned subsidiary of 

Invenergy Investment Company LLC 

(Invenergy Investment), owns the Class 

B membership interests in Vantage 

Holdings and is the managing member. 

Vantage Wind states that Mehetia, Inc. 

(Mehetia) owns the Class A membership 

interests in Vantage Holdings. Vantage 

Wind represents that the Class A 

membership interests held by Mehetia 

are passive interests, consistent with the 

interests found to be passive in AES 

Creative Resources, L.P.5

6. Invenergy Investment is a whollyowned subsidiary of Polsky Energy 

Investments LLC, which is indirectly 

owned and controlled by an individual. 

Vantage Wind states that through 

subsidiaries, Invenergy Investment is in 

the business of acquiring or developing, 

and owning and operating, electric 

generation facilities and associated 

interconnecting transmission facilities 

in the United States or abroad. 

7. Vantage Wind states that other than 

their interests in Vantage Wind, none of 

Polsky Energy or Invenergy Investment 

and their respective affiliates own or 

control electric generation or 

transmission assets located within the 

Puget balancing authority area. 

Invenergy Investment indirectly owns 

controlling interests in two companies 

that own generation in the Bonneville 

Power Administration balancing 

authority area, which is first-tier to the 

Puget balancing authority area. The two 

companies are Grays Harbor Energy 

LLC, which owns a 650 MW gas-fired 

generation facility, and Willow Creek 

Energy LLC, which owns a 72 MW 

wind-powered generation facility. 

Vantage Wind states that this generation 

is accounted for in its market power 

analysis. 

8. On June 17, 2011, the Commission 

issued an order accepting simultaneous 

transmission import limit (SIL) values 

for the Northwest region, including the 

Puget balancing authority area.6 In 

accepting Puget’s SIL values, 

Commission staff adjusted Puget’s SIL 

values to account for long-term firm 

transmission reservations by using data 

reported by Puget to derive a ‘‘net’’ SIL 

value for the Puget balancing authority 

area. This ‘‘net’’ SIL value is the 

accepted SIL value for that balancing 

authority area as set forth in the NW SIL 

Order.7 Puget’s screens, however, used 

the higher, ‘‘gross’’ SIL values originally 

filed by Puget.8 Additionally, Puget 

reported all of its remote generation 

resources and firm power purchases that 

Puget controls, as non-firm imports 

(Line D of the pivotal supplier screen 

and Line E of the market share screen).9

9. In Vantage Wind’s December 20, 

2010 Filing, Vantage Wind filed screens 

that utilized the ‘‘gross’’ SIL values that 

Puget used in its screens. Thus, Vantage 

Wind needed to revise its indicative 

screens so that its total imports are 

consistent with the Commission’s 

accepted SIL values for the Puget 

balancing authority area. 

10. On August 8, 2011, Vantage Wind 

filed revised pivotal supplier and 

wholesale share market screens as an 

amendment to its updated market power 

analysis to demonstrate that it continues 

to pass the indicative screens when the 

Commission-accepted SIL values for the 

Puget balancing authority area are 

applied. 

Notices and Responsive Pleadings 

11. Notice of Vantage Wind’s 

December 20, 2010 and August 8, 2011 

filings were published in the Federal 

Register, 75 FR 81,600 (2010) and 77 FR 

2518 (2012), with interventions or 

protests due on or before February 18, 

2011 and January 31, 2012. None was 

filed. 

Discussion 

Market-Based Rate Authorization 

12. The Commission allows power 

sales at market-based rates if the seller 

and its affiliates do not have, or have 

adequately mitigated, horizontal and 

vertical market power.10 As discussed 


tkelley on DSK3SPTVN1PROD with NOTICES