78690 Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 

Secondary locations: Director, 

National Personnel Records Center, 

Military Personnel Records, 9700 Page 

Avenue, St. Louis, MO 63132–5100, for 

records of retired or former personnel 62 

years after retirement or discharged 

from the U.S. Navy.’’ 

CATEGORIES OF INDIVIDUALS COVERED BY THE

SYSTEM: 

All Navy military members. 

CATEGORIES OF RECORDS IN THE SYSTEM: 

Name, Social Security Number (SSN), 

date of birth, education, training and 

qualifications, professional history, 

assignments, performance, promotions, 

leave and pay entitlements and 

deductions. 

AUTHORITY FOR MAINTENANCE OF THE SYSTEM: 

10 U.S.C. 5013, Secretary of the Navy 

and E.O. 9397 (SSN), as amended. 

PURPOSE(S): 

The purpose of this system is to 

provide secure worldwide personnel 

and pay support for Navy members and 

their commands. To allow authorized 

Navy personnel and pay specialists to 

collect, process, modify, transmit, and 

store unclassified personnel and pay 

data. To support management of leave 

and pay entitlements and deductions so 

that this information can be provided to 

the Defense Finance and Accounting 

Service (DFAS) for payroll processing 

and preparation of the Leave and 

Earnings Statements (LES). 

ROUTINE USES OF RECORDS MAINTAINED IN THE

SYSTEM, INCLUDING CATEGORIES OF USERS AND

THE PURPOSES OF SUCH USES: 

In additional to those disclosures 

generally permitted under 5 U.S.C. 

552a(b) of the Privacy Act of 1974, these 

records or information contained 

therein may specifically be disclosed 

outside the DoD as a routine use 

pursuant to 5 U.S.C. 552a(b)(3) as 

follows: 

The DoD ‘Blanket Routine Uses’ that 

appear at the beginning of the Navy’s 

compilation of systems of records 

notices apply to this system. 

Policies and practices for storing, 

retrieving, accessing, retaining, and 

disposing of records in the system: 

STORAGE: 

Paper and automated records 

maintained by Space and Warfare 

Systems Center Atlantic. 

RETRIEVABILITY: 

Records are retrieved by name and 

Social Security Number (SSN). 

SAFEGUARDS: 

Password controlled system, file, and 

element access based on predefined 

need-to-know. Physical access to 

terminals, terminal rooms, buildings 

and activities’ grounds are controlled by 

locked terminals and rooms, guards, 

personnel screening and visitor 

registers. 

RETENTION AND DISPOSAL: 

Records will be maintained by the 

primary record holder for current U.S. 

Navy members, and for 62 years after 

retirement or discharged from the U.S. 

Navy. Thereafter, records will be 

maintained by the secondary record 

holder at the National Personnel 

Records Center. 

SYSTEM MANAGER(S) AND ADDRESS: 

Policy Official: Commander, Navy 

Personnel Command (PERS–33), 5720 

Integrity Drive, Millington, TN 38055– 

3120. 

Primary Record Holder: Personnel 

Office or Personnel Support Detachment 

that provides administrative support for 

the local activity where assigned. 

Official mailing addresses are published 

in the Standard Navy Distribution List. 

Secondary locations: Director, 

National Personnel Records Center, 

Military Personnel Records, 9700 Page 

Avenue, St. Louis, MO 63132–5100, for 

records of retired or former personnel 62 

years after retirement or discharged 

from the U.S. Navy. 

NOTIFICATION PROCEDURE: 

Individuals seeking to determine 

whether this system of records contains 

information about themselves should 

address written inquiries to the 

Personnel Office or Personnel Support 

Detachment providing administrative 

support for the local activity where they 

are assigned. Official mailing addresses 

are published in the Standard Navy 

Distribution List. 

Secondary location: Director, National 

Personnel Records Center, Military 

Personnel Records, 9700 Page Avenue, 

St. Louis, MO 63132–5100, for records 

of retired or former personnel 62 years 

after retirement or discharge from the 

U.S. Navy. 

The request should include full name, 

Social Security Number, and address of 

the individual concerned and should be 

signed. The system manager may 

require an original signature or a 

notarized signature as a means of 

proving the identity of the individual 

requesting access to the records. 

RECORD ACCESS PROCEDURE: 

Individuals seeking access to records 

about themselves should address 

written inquiries to the Personnel Office 

or Personnel Support Detachment 

providing administrative support for the 

local activity where they are assigned. 

Official mailing addresses are published 

in the Standard Navy Distribution List. 

Secondary location: Director, National 

Personnel Records Center, Military 

Personnel Records, 9700 Page Avenue, 

St. Louis, MO 63132–5100, for records 

of retired or former personnel 62 years 

after retirement or discharge from the 

U.S. Navy. 

Written requests should contain full 

name, Social Security Number, and 

address of the individual concerned and 

should be signed. The system manager 

may require an original signature or a 

notarized signature as a means of 

proving the identity of the individual 

requesting access to the records. 

CONTESTING RECORD PROCEDURES: 

The Navy’s rules for accessing 

records, and for contesting contents and 

appealing initial agency determinations 

are published in Secretary of the Navy 

Instruction 5211.5; 32 CFR part 701; or 

may be obtained from the system 

manager. 

RECORDS SOURCE CATEGORIES: 

Official records and systems 

maintaining personnel information, 

professional qualifications, and 

educational institutions. These records 

and systems include the Navy Military 

Personnel Records System, Enlisted 

Master File Automated System, Officer 

Master File Automated System, Reserve 

Command Management System, OnLine Distribution Information System, 

and Education and Training Records. 

EXEMPTIONS CLAIMED FOR THE SYSTEM: 

None. 

[FR Doc. 2010–31577 Filed 12–15–10; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF ENERGY 

Bonneville Power Administration 

[BPA File No.: BP–12] 

Fiscal Year (FY) 2012–2013 Proposed 

Transmission Rate Adjustments Public 

Hearing and Opportunities for Public 

Review and Comment 

AGENCY: Bonneville Power 

Administration (BPA), Department of 

Energy (DOE). 

ACTION: Notice of FY 2012–2013 

proposed transmission rate adjustments. 

SUMMARY: BPA is holding a consolidated 

rate proceeding, Docket No. BP–12, to 

establish power and transmission rates 

for FY 2012–2013. The purpose of this 

Federal Register Notice is to provide 

notice of the proposed rates for 


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transmission and for the two required 

ancillary services (listed below, part 

IV.C.). BPA has previously issued a 

separate Federal Register Notice to 

provide notice of the proposed rates for 

power, the other ancillary services, and 

all control area services. 

The Pacific Northwest Electric Power 

Planning and Conservation Act 

(Northwest Power Act) provides that 

BPA must establish and periodically 

review and revise its rates so that they 

are adequate to recover, in accordance 

with sound business principles, the 

costs associated with the acquisition, 

conservation, and transmission of 

electric power, including amortization 

of the Federal investment in the Federal 

Columbia River Power System (FCRPS) 

over a reasonable number of years and 

BPA’s other costs and expenses. The 

Northwest Power Act also requires that 

BPA’s rates be established based on the 

record of a formal hearing, and for 

transmission rates only, that the costs of 

the Federal transmission system be 

equitably allocated between Federal and 

non-Federal power utilizing the system. 

By this notice, BPA announces the 

commencement of the transmission 

portion of a power and transmission rate 

adjustment proceeding, for rates to 

become effective on October 1, 2011. 

DATES: Anyone who has previously 

intervened in the BP–12 rate proceeding 

is automatically a party to this portion 

of the proceeding as well. Anyone who 

has not intervened in the BP–12 rate 

proceeding and wishes to become a 

party to the proceeding for purposes of 

the transmission portion of the case 

only must intervene by sending notice 

to the addresses listed below no later 

than 5 p.m. on December 23, 2010. 

Parties that intervene at this time may 

not participate in the power portion of 

the rate proceeding. 

The transmission portion of the BP– 

12 rate adjustment proceeding begins 

with a prehearing conference at 9 a.m. 

on December 17, 2010, in the BPA Rates 

Hearing Room, 2nd floor, 911 NE. 11th 

Avenue, Portland, Oregon 97232. 

Written comments by non-party 

participants must be received by 

March 8, 2011 to be considered in the 

Administrator’s ROD. 

ADDRESSES: 

1. Petitions to intervene should be 

directed to: Hearing Clerk—L–7, 

Bonneville Power Administration, 905 

NE. 11th Avenue, Portland, Oregon 

97232, or may be e-mailed to 

rateclerk@bpa.gov. In addition, copies 

of the petition must be served 

concurrently on BPA’s General Counsel 

and directed to both Mr. Peter J. Burger, 

LP–7, and Mr. Barry Bennett, LC–7, 

Office of General Counsel, 905 NE. 11th 

Avenue, Portland, Oregon 97232, or via 

e-mail to pjburger@bpa.gov and 

bbennett@bpa.gov (see section III.A. for 

more information regarding 

interventions). 

2. Written comments by participants 

should be submitted to the Public 

Engagement Office, DKE–7, Bonneville 

Power Administration, P.O. Box 14428, 

Portland, Oregon 97293. Participants 

may also submit comments by e-mail at: 

http://www.bpa.gov/comment. BPA 

requests that all comments and 

documents intended to be part of the 

official record in this rate proceeding 

contain the designation BP–12 in the 

subject line. 

FOR FURTHER INFORMATION CONTACT:

Ms. Heidi Y. Helwig, DKC–7, Public 

Affairs Specialist, Bonneville Power 

Administration, P.O. Box 3621, 

Portland, Oregon 97208; by phone toll 

free at 1–800–622–4520; or via e-mail to 

hyhelwig@bpa.gov. 

Responsible Officials: Ms. Rebecca E. 

Fredrickson, Transmission Rates 

Manager, is the official responsible for 

the development of BPA’s transmission, 

ancillary and control area services 

(ACS) rates. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

Part I. Introduction and Procedural 

Background 

Part II. Scope of 2012 Rate Proceeding 

Part III. Public Participation in BP–12 

Part IV. Summary of Rate Proposal 

Part V. Proposed 2012 Rate Schedules 

Part I—Introduction and Procedural 

Background 

Section 7(i) of the Northwest Power 

Act, 16 U.S.C. 839e(i), requires that 

BPA’s rates be established according to 

certain procedures, including 

publication in the Federal Register of 

this notice of the proposed rates; one or 

more hearings conducted as 

expeditiously as practicable by a 

Hearing Officer; opportunity for both 

oral presentation and written 

submission of views, data, questions, 

and arguments related to the proposed 

rates; and a decision by the 

Administrator based on the record. 

BPA’s rate proceedings are further 

governed by BPA’s Procedures 

Governing Bonneville Power 

Administration Rate Hearings, 51 

Federal Register 7611 (1986), which 

implement and expand the statutory 

requirements. 

This proceeding is being conducted 

under the rule for general rate 

proceedings, section 1010.4 of BPA’s 

Procedures. A proposed schedule for the 

proceeding is provided below. A final 

schedule will be established by the 

Hearing Officer at the prehearing 

conference. 

Prehearing/BPA Direct 

Case.

December 17. 

Intervention Deadline ........ December 23. 

Clarification ....................... January 4–7. 

Motions to Strike ............... January 11. 

Data Request Deadline .... January 11. 

Answers to Motions to 

Strike.

January 18. 

Data Response Deadline January 18. 

Parties File Direct Case ... February 8. 

Clarification ....................... February 14–15. 

Motions to Strike ............... February 22. 

Data Request Deadline .... February 22. 

Answers to Motions to 

Strike.

March 1. 

Data Response Deadline March 1. 

Close of Participant Comments.March 8. 

Litigants File Rebuttal ....... March 8. 

Clarification ....................... March 14–15. 

Motions to Strike ............... March 17. 

Data Request Deadline .... March 17. 

Answers to Motions to 

Strike.

March 25. 

Data Response Deadline March 25. 

Cross-Examination ........... March 28–April 

1. 

Initial Briefs Filed .............. May 2. 

Oral Argument .................. May 12. 

Draft ROD Issued ............. June 14. 

Briefs on Exceptions ......... June 24. 

Final ROD—Final Studies July 25. 

Section 1010.7 of BPA’s Procedures 

prohibits ex parte communications. The 

ex parte rule applies to all BPA and 

DOE employees and contractors. Except 

as provided below, any outside 

communications with BPA and/or DOE 

personnel regarding the merits of any 

issue in BPA’s rate proceeding by other 

Executive Branch agencies, Congress, 

existing or potential BPA customers 

(including Tribes), or nonprofit or 

public interest groups are considered 

outside communications and are subject 

to the ex parte rule. The rule does not 

apply to communications relating to: (1) 

Matters of procedure only (the status of 

the rate proceeding, for example); (2) 

exchanges of data in the course of 

business or under the Freedom of 

Information Act; (3) requests for factual 

information; (4) matters for which BPA 

is responsible under statutes other than 

the ratemaking provisions; or (5) matters 

which all parties agree may be made on 

an ex parte basis. The ex parte rule 

remains in effect until the 

Administrator’s Final ROD is issued, 

which is scheduled to occur on or about 

July 25, 2011. 

Part II—Scope of 2012 Rate Proceeding 

A. Joint Rate Proceeding 

BPA is holding one wholesale power 

and transmission rate proceeding with 


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one schedule, one record, and one ROD. 

As noted above in the summary, BPA 

has issued a separate Federal Register 

Notice to provide notice of the proposed 

power rates and rates for certain 

ancillary services and all control area 

services. 

B. 2010 Integrated Program Review 

BPA began its 2010 Integrated 

Program Review (IPR) process in May 

2010. The IPR process is designed to 

allow people interested in BPA’s 

program levels an opportunity to review 

and comment on all of BPA’s expense 

and capital spending level estimates in 

the same forum prior to the use of those 

estimates in setting rates. Concurrent 

with the IPR, BPA held regional 

conversations about risk mitigation and 

debt management practices. 

The 2010 IPR focused on FY 2012 and 

2013 program levels for BPA’s Power 

Services and Transmission Services as 

well as a review of FY 2011 program 

levels. BPA held 19 technical 

workshops and two general manager 

meetings at which proposed spending 

levels were presented for each of BPA’s 

programs. BPA carefully reviewed and 

considered the 26 written comments 

and numerous oral comments on FY 

2012 and 2013 program levels that were 

provided during this public process. 

On October 27, 2010, BPA issued the 

Final Close-Out Letter and 

accompanying final report for the IPR, 

which summarizes the comments 

received and outlines BPA’s responses. 

The report also summarizes comments 

and BPA’s responses on the regional 

conversations about risk mitigation and 

debt management. In the Final CloseOut Letter and report, BPA established 

the program level cost estimates for both 

power and transmission rates that are 

used in the Initial Proposal. BPA does 

not anticipate additional public review 

of proposed spending levels. However, 

an abbreviated IPR process may be held 

if conditions warrant. BPA would 

conduct this process separately from the 

rate proceeding to share updates and 

solicit feedback from customers and 

constituents before the final program 

levels are incorporated into the final 

rates. 

C. Rate Case Workshops 

In preparation for the BP–12 rate 

proceeding, BPA held several public 

rate case workshops with customers and 

interested parties from March through 

September 2010. During the workshops, 

BPA staff presented and discussed 

information about costs, load and 

resource forecasting, generation inputs 

pricing, segmentation, revenue 

forecasts, load forecasts, risk analysis 

and mitigation, products, pricing, and 

rate design. Customers and interested 

parties had extensive opportunity to 

participate, raise issues, present 

alternative proposals, and comment on 

the information BPA staff presented. 

The comments and alternatives received 

during these workshops have assisted in 

the preparation of the Initial Proposal. 

D. Scope of the Rate Proceeding 

This section provides guidance to the 

Hearing Officer as to those matters that 

are within the scope of the rate 

proceeding and those that are outside 

the scope. 

1. Program Cost Estimates 

Some of the decisions that determine 

program costs and spending levels have 

been made in the IPR public review 

process outside the rate proceeding. See 

section II.B. BPA’s spending levels for 

investments and expenses are not 

determined or subject to review in rate 

proceedings. 

Pursuant to section 1010.3(f) of BPA’s 

Procedures, the Administrator directs 

the Hearing Officer to exclude from the 

record all argument, testimony, or other 

evidence that challenges the 

appropriateness or reasonableness of the 

Administrator’s decisions on cost and 

spending levels. If, and to the extent 

that, any re-examination of spending 

levels is necessary, such re-examination 

will occur outside of the rate 

proceeding. This exclusion does not 

extend to portions of the revenue 

requirements related to interest rate 

forecasts, interest expense and credit, 

Treasury repayment schedules, forecasts 

of depreciation, forecasts of system 

replacements used in repayment 

studies, generation acquisition expense 

incurred by Transmission Services, 

minimum required net revenue, and the 

costs of risk mitigation actions resulting 

from the expense and revenue 

uncertainties included in the risk 

analysis. The Administrator also directs 

the Hearing Officer to exclude argument 

and evidence regarding BPA’s debt 

management practices and policies. See 

section II.D.2. 

2. Federal and Non-Federal Debt Service 

and Debt Management 

During the 2010 IPR and in other 

forums, BPA provided the public with 

background information on BPA’s 

internal Federal and non-Federal debt 

management policies and practices. 

While these policies and practices are 

not decided in the IPR forum, these 

discussions were intended to inform 

interested parties about these matters so 

that they would better understand 

BPA’s debt structure. Notwithstanding 

the public discussions, BPA’s debt 

management policies and practices 

remain outside the scope of the rate 

proceeding. 

Pursuant to § 1010.3(f) of BPA’s 

Procedures, the Administrator hereby 

directs the Hearing Officer to exclude 

from the record all argument, testimony, 

or other evidence that seeks in any way 

to address the appropriateness or 

reasonableness of BPA’s debt 

management policies and practices. 

3. Potential Environmental Impacts 

Environmental impacts are addressed 

in a concurrent National Environmental 

Policy Act (NEPA) process. See section 

II.E. 

Pursuant to § 1010.3(f) of BPA’s 

Procedures, the Administrator directs 

the Hearing Officer to exclude from the 

record all argument, testimony, or other 

evidence that seeks in any way to 

address the potential environmental 

impacts of the rates being developed in 

this rate proceeding. 

E. The National Environmental Policy 

Act 

BPA is in the process of assessing the 

potential environmental effects of its 

proposed power and transmission rates, 

consistent with the NEPA. The NEPA 

process is conducted separately from 

the rate proceeding. As discussed in 

section II.D.3., all evidence and 

argument addressing potential 

environmental impacts of rates being 

developed in the BP–12 rate proceeding 

are excluded from the rate proceeding 

hearing record. Rather, comments on 

environmental effects should be 

directed to the NEPA process. 

Because this proposal involves BPA’s 

ongoing business practices related to 

rates, BPA is reviewing the proposal for 

consistency with BPA’s Business Plan 

Environmental Impact Statement 

(Business Plan EIS), completed in June 

1995 (BOE/EIS–0183). This policy-level 

EIS evaluates the environmental 

impacts of a range of business plan 

alternatives for BPA that could be varied 

by applying various policy modules, 

including one for rates. Any 

combination of alternative policy 

modules should allow BPA to balance 

its costs and revenues. The Business 

Plan EIS also includes response 

strategies, such as adjustments to rates, 

that BPA could implement if BPA’s 

costs exceed its revenues. 

In August 1995, the BPA 

Administrator issued a ROD (Business 

Plan ROD) that adopted the MarketDriven Alternative from the Business 

Plan EIS. This alternative was selected 

because, among other reasons, it allows 

BPA to: (1) Recover costs through rates; 


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(2) competitively market BPA’s products 

and services; (3) develop rates that meet 

customer needs for clarity and 

simplicity; (4) continue to meet BPA’s 

legal mandates; and (5) avoid adverse 

environmental impacts. BPA also 

committed to apply as many response 

strategies as necessary when BPA’s costs 

and revenues do not balance. 

In April 2007, BPA completed and 

issued a Supplement Analysis to the 

Business Plan EIS. This Supplement 

Analysis found that the Business Plan 

EIS’s relationship-based and policylevel analysis of potential 

environmental impacts from BPA’s 

business practices remains valid, and 

that BPA’s current business practices 

remain consistent with BPA’s MarketDriven Alternative approach. The 

Business Plan EIS and ROD thus 

continue to provide a sound basis for 

making determinations under NEPA 

concerning BPA’s policy-level 

decisions, including rates. 

Because the proposed rates likely 

would assist BPA in accomplishing the 

goals identified in the Business Plan 

ROD, the proposal appears consistent 

with these aspects of the Market-Driven 

Alternative. In addition, this rate 

proposal is similar to the type of rate 

designs evaluated in the Business Plan 

EIS; thus, implementation of this rate 

proposal would not be expected to 

result in environmental impacts 

significantly different from those 

examined in the Business Plan EIS. 

Therefore, BPA expects that this rate 

proposal likely will fall within the 

scope of the Market-Driven Alternative 

that was evaluated in the Business Plan 

EIS and adopted in the Business Plan 

ROD. 

As part of the Administrator’s ROD 

that will be prepared for the BP–12 rate 

proceeding, BPA may tier its decision 

under NEPA to the Business Plan ROD. 

However, depending upon the ongoing 

environmental review, BPA may instead 

issue another appropriate NEPA 

document. Comments regarding the 

potential environmental effects of the 

proposal may be submitted to Katherine 

Pierce, NEPA Compliance Officer, KEC– 

4, Bonneville Power Administration, 

905 NE 11th Avenue, Portland, OR 

97232. Any such comments received by 

the comment deadline for Participant 

Comments identified in section III.A. 

below will be considered by BPA’s 

NEPA compliance staff in the NEPA 

process that will be conducted for this 

proposal. 

Part III—Public Participation in BP–12 

A. Distinguishing Between 

‘‘Participants’’ and ‘‘Parties’’ 

BPA distinguishes between 

‘‘participants in’’ and ‘‘parties to’’ the 

hearings. Apart from the formal hearing 

process, BPA will receive written 

comments, views, opinions, and 

information from ‘‘participants,’’ who 

may submit comments without being 

subject to the duties of, or having the 

privileges of, parties. Participants’ 

written comments will be made part of 

the official record and considered by the 

Administrator. Participants are not 

entitled to participate in the prehearing 

conference; may not cross-examine 

parties’ witnesses, seek discovery, or 

serve or be served with documents; and 

are not subject to the same procedural 

requirements as parties. BPA customers 

whose rates are subject to this 

proceeding, or their affiliated customer 

groups, may not submit participant 

comments. Members or employees of 

organizations that have intervened in 

the rate proceeding may submit general 

comments as participants but may not 

use the comment procedures to address 

specific issues raised by their intervenor 

organizations. 

Written comments by participants 

will be included in the record if they are 

received by March 8, 2011. Written 

views, supporting information, 

questions, and arguments should be 

submitted to the address listed in the 

ADDRESSES section of this Notice. 

Entities or people become parties to 

the proceeding by filing petitions to 

intervene, which must state the name 

and address of the entity or person 

requesting party status and the entity’s 

or person’s interest in the hearing. BPA 

customers and affiliated customer 

groups will be granted intervention 

based on petitions filed in conformance 

with BPA’s Procedures. Other 

petitioners must explain their interests 

in sufficient detail to permit the Hearing 

Officer to determine whether the 

petitioners have a relevant interest in 

the hearing. Pursuant to Rule 1010.1(d) 

of BPA’s Procedures, BPA waives the 

requirement in Rule 1010.4(d) that an 

opposition to an intervention petition be 

filed and served 24 hours before the 

prehearing conference. The time limit 

for opposing a timely intervention will 

be established at the prehearing 

conference. Any party, including BPA, 

may oppose a petition for intervention. 

All petitions will be ruled on by the 

Hearing Officer. Late interventions are 

strongly disfavored. Opposition to an 

untimely petition to intervene must be 

filed and received by BPA within two 

days after service of the petition. 

B. Developing the Record 

The hearing record will include, 

among other things, the transcripts of 

the hearing, written evidence and 

argument entered into the record by 

BPA and the parties, written comments 

from participants, and other material 

accepted into the record by the Hearing 

Officer. The Hearing Officer will then 

review the record and certify the record 

to the Administrator for final decision. 

The Administrator will develop final 

rates based on the record and such other 

materials and information as may have 

been submitted to or developed by the 

Administrator. The Administrator will 

serve copies of the Final ROD on all 

parties. BPA will file its rates with the 

Commission for confirmation and 

approval after issuance of the Final 

ROD. 

Part IV—Summary of Rate Proposal 

A. Partial Settlement of Transmission 

Rates 

Transmission Services and most of its 

customers are parties to a Partial 

Settlement Agreement that provides for 

Transmission Services to submit a 

Settlement Proposal that incorporates 

the provisions of the agreement. Under 

the Partial Settlement Agreement, 

Transmission Services will propose 

maintaining current FY 2010–2011 

rates, with no rate increase for the FY 

2012–2013 period, for all transmission 

services and for two ancillary services: 

Scheduling, System Control and 

Dispatch Service and Reactive Supply 

and Voltage Control from Generation 

Sources Service. The remaining 

ancillary services and all control area 

services are not covered by the partial 

settlement. 

The Partial Settlement Agreement also 

includes changes to the Failure to 

Comply Penalty Charge, the Network 

Integration Rate, and the Integration of 

Resources Rate, as well as changes to 

several definitions in the General Rate 

Schedule Provisions. In addition, the 

agreement restricts the arguments 

parties to the settlement may make 

regarding the reliance of Power Services 

on reserves attributable to Transmission 

Services and commits BPA to various 

public processes regarding rates and 

other issues. 

Under the Partial Settlement 

Agreement the Administrator will 

establish the Montana Intertie (IM) and 

Eastern Intertie (IE) rates, and consider 

revisions to the Townsend-Garrison 

Transmission rate, in a contested 

process in this rate case. However, 

under the agreement, BPA staff will 

propose that the IM and IE rates be no 

higher than the existing rates, and the 


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signatories to the settlement agreement 

agree not to present evidence or 

argument that either rate should be 

higher than the existing rates. 

The Partial Settlement Agreement 

recognizes the possibility that parties to 

the BP–12 rate proceeding that have not 

signed the Partial Settlement Agreement 

may object to the Settlement Proposal. 

If any party objects to the Settlement 

Proposal, BPA has the right to submit a 

revised proposal. If BPA submits a 

revised proposal, signatories to the 

Partial Settlement Agreement may 

contest any aspect of the revised 

proposal. If BPA does not revise the 

Settlement Proposal, and the 

Administrator establishes transmission 

rates consistent with the Settlement 

Proposal, the signatories may not 

challenge approval of the rates by the 

Commission or in any judicial forum. 

B. Transmission Rates 

BPA is proposing four different rates 

for the use of its Integrated Network 

segment, four different rates for use of 

intertie segments, and several other 

rates for various purposes. 

The four rates for use of the Integrated 

Network segment are: 

Formula Power Transmission (FPT– 

12) rate—The FPT rate is based on the 

cost of using specific types of facilities, 

including a distance component for the 

use of transmission lines, and is charged 

on a contract demand basis. 

Integration of Resources (IR–12) rate— 

The IR rate is a postage stamp, contract 

demand rate for the use of the Integrated 

Network, similar to Point-to-Point (PTP) 

service. 

Network Integration Transmission 

(NT–12) rate—The NT rate applies to 

customers taking network integration 

service under the Open Access 

Transmission Tariff (OATT) and allows 

customers to flexibly serve their retail 

load. 

Point-to-Point (PTP–12) rate—The 

PTP rate is a contract demand rate that 

applies to customers taking point-topoint service on BPA’s network 

facilities under the OATT. It provides 

customers with flexible service from 

identified Points of Receipt to identified 

Points of Delivery. There are separate 

PTP rates for: Long-term firm service; 

daily firm and non-firm service; and 

hourly firm and non-firm service. 

In addition to the four rates for 

network use, other proposed 

transmission rates include the 

following: 

The Southern Intertie (IS–12) and the 

Montana Intertie (IM–12) rates are 

contract demand rates that apply to 

customers taking point-to-point service 

under the OATT on the Southern 

Intertie and Montana Intertie. These 

rates are structured similarly to the rate 

for point-to-point service on network 

facilities. 

The Townsend-Garrison Transmission 

(TGT–12) and the Eastern Intertie (IE– 

12) rates are developed pursuant to the 

Montana Intertie agreement. 

The Use-of-Facilities (UFT–12) rate 

establishes a formula for charging for 

the use of a specific facility based on the 

annual cost of that facility. 

The Advance Funding (AF–12) rate 

allows Transmission Services to collect 

the capital and related costs of specific 

facilities through an advance-funding 

mechanism. 

Other charges that may apply include: 

A Delivery Charge for the use of lowvoltage delivery substations; a Power 

Factor Penalty Charge; a Reservation Fee 

for customers that postpone their 

service commencement dates; 

incremental rates for transmission 

requests that require new facilities; a 

penalty charge for failure to comply 

with dispatch, curtailment, redispatch, 

or load shedding orders; and an 

Unauthorized Increase Charge for 

customers that exceed their contracted 

amounts. 

C. Ancillary Services Rates 

In this Federal Register notice BPA is 

proposing rates for two ancillary 

services: Scheduling, System Control, 

and Dispatch Service, and Reactive 

Supply and Voltage Control from 

Generation Sources Service. 

3. Changes to Transmission Rates and 

Rate Schedules 

a. Network Integration Transmission 

(NT–12) rate 

The NT rate applies to customers 

taking network integration service under 

the OATT and allows customers to 

flexibly serve their retail load. 

Transmission Services is proposing to 

delete CSL and add a Short Distance 

Discount (SDD) to the NT rate, applied 

to the NT Base Charge. The SDD would 

apply when a Customer has a resource 

that: (i) Is designated as a Network 

Resource in the customer’s NT Service 

Agreement for at least 12 months; and 

(ii) uses FCRTS facilities for less than 75 

circuit miles for delivery to the 

Customer’s Network Load. A designated 

network resource that is a system sale 

(the designated resource is not 

associated with a specific generating 

resource) would not qualify for the SDD. 

Additionally, any designated resource 

that is eligible for the SDD must be 

noted as such in the NT Service 

Agreement to receive the billing credit. 

b. Failure To Comply Penalty Charge 

BPA proposes to change the rate for 

the Failure to Comply Penalty Charge 

from 1000 mills per kilowatthour to the 

greater of 500 mills per kilowatthour or 

150% of an hourly energy index in the 

Pacific Northwest. 

c. Integration of Resources (IR–12)— 

Ratchet Demand Relief 

BPA proposes to add language to the 

section on Ratchet Demand Relief 

providing that relief from the Ratchet 

Demand is not available in the month in 

which the Ratchet Demand was 

established. For that month, the 

customer will be assessed charges based 

upon the highest hourly Scheduled 

Demand Billing Factor. 

d. Changes to Definitions 

BPA proposes to modify the 

definitions of Dynamic Schedule, 

Dynamic Transfer, Daily Service, 

Monthly Service, and Weekly Service. 

Part V—Proposed 2012 Rate Schedules 

BPA’s proposed 2012 Transmission 

Rate Schedules are a part of this notice 

and are available for viewing and 

downloading on BPA’s Web site at 

http://www.bpa.gov/corporate/ratecase/ 

2012/. Copies of the proposed rate 

schedules also are available for viewing 

in BPA’s Public Reference Room at the 

BPA Headquarters, 1st Floor, 905 NE 

11th Avenue, Portland, OR 97232. 

Issued this 7th day of December, 2010. 

Stephen J. Wright, 

Administrator and Chief Executive Officer. 

[FR Doc. 2010–31621 Filed 12–15–10; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF ENERGY 

Bonneville Power Administration 

[BPA File No.: REP–12] 

Proposed Residential Exchange 

Program Settlement Agreement 

Proceeding (REP–12); Public Hearing 

and Opportunities for Public Review 

and Comment 

AGENCY: Bonneville Power 

Administration (BPA), Department of 

Energy (DOE). 

ACTION: Notice of Residential Exchange 

Program Settlement Agreement 

Proceeding (REP–12). 

SUMMARY: BPA is conducting the 2012 

Residential Exchange Program 

Settlement Agreement Proceeding (REP– 

12) to review the terms and conditions 

of a proposed 17-year settlement of 

issues regarding the implementation of 


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