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[Federal Register Volume 75, Number 34 (Monday, February 22, 2010)]
[Notices]
[Pages 7580-7581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3344]

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DEPARTMENT OF ENERGY

Southeastern Power Administration

Proposed Rate Adjustment for Kerr-Philpott System

AGENCY: Southeastern Power Administration (Southeastern), DOE.

ACTION: Notice of public hearing and opportunities for review and 
comment.

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SUMMARY: Southeastern proposes to replace existing schedules of rates 
and charges applicable for the sale of power from the Kerr-Philpott 
System effective for a five-year period from October 1, 2010, to 
September 30, 2015. Additionally, opportunities will be available for 
interested persons to review the present rates, the proposed rates and 
supporting studies, to participate in a public forum, and to submit 
written comments. Southeastern will evaluate all comments received in 
this process.

DATES: Written comments are due on or before May 24, 2010. A public 
information and comment forum will be held in Raleigh, North Carolina, 
at 10 a.m. on March 30, 2010. Persons desiring to speak at the forum 
should notify Southeastern at least seven (7) days before the forum is 
scheduled so that a list of forum participants can be prepared. Others 
present at the forum may speak if time permits. Persons desiring to 
attend the forum should notify Southeastern at least seven (7) days 
before the forum is scheduled. Unless Southeastern has been notified by 
the close of business on March 23, 2010, that at least one person 
intends to be present at the forum, the forum may be canceled with no 
further notice.

ADDRESSES: Written comments should be submitted to: Kenneth E. Legg, 
Administrator, Southeastern Power Administration, Department of Energy, 
Elberton, GA 30635. The public comment forum will meet at the Marriott-
Raleigh Crabtree Valley, 4500 Marriott Drive, Raleigh, NC 27612, phone 
(919) 781-7000.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant 
Administrator, Finance and Marketing, Southeastern Power 
Administration, Department of Energy, 1166 Athens Tech Road, Elberton, 
GA 30635-6711, (706) 213-3800.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission 
(FERC), by order issued December 8, 2006,117 FERC ] 62,220, confirmed 
and approved Rate Schedules VA-1-A, VA-2-A, VA-3-A, VA-4-A, CP&L-1-A, 
CP&L-2-A, CP&L-3-A, CP&L-4-A, AP-1-A, AP-2-A, AP-3-A, AP-4-A, NC-1-A, 
Replacement-2, and VANC-1 for the period October 1, 2006, to September 
30, 2011. A repayment study prepared in January of 2010 showed that 
existing rates are not adequate to recover all costs required by 
present repayment criteria. Due to the projected shortfall a revised 
repayment study was prepared with a revenue increase of $3,723,000 in 
Fiscal Year 2011 and all future years. The revised repayment plan shows 
that all costs will be repaid within their service life. Therefore, 
Southeastern is proposing to revise the existing rates to generate this 
additional revenue. The increase is primarily due to a severe drought. 
The rate adjustment is an increase of about 20 percent.

Proposed Unit Rates

    Under the proposed rates, the capacity charge will increase from 
the current $2.98 per kilowatt per month to $3.91 per kilowatt per 
month. The energy charge will increase from the current 11.90 mills per 
kilowatt-hour to 15.66 mills per kilowatt-hour. In addition, 
Southeastern proposes to continue a Tandem Transmission rate, which is 
designed to recover the cost of transmitting power from a project to 
the border of another transmitting system. This rate is to be a 
formulary pass-through rate based on the charges by transmission 
facilitators and is estimated to be $2.14 per kilowatt per month.
    In addition to these proposed rate adjustments, Southeastern is 
proposing to continue a true-up based on the costs that are transferred 
to plant in service in the preceding fiscal year to cover the costs 
associated with this rehabilitation. The John H. Kerr Project is 
currently undergoing rehabilitation, and a true-up adjustment is 
incorporated in the current rates. For each increase of $1,000,000 to 
plant in service, an increase of $0.013 per kilowatt per month will be 
added to the capacity charge, and 0.052 mills per kilowatt-hour will be 
added to the energy charge.
    Southeastern is proposing the following rate schedules to be 
effective for the period from October 1, 2010, to September 30, 2015. 
The capacity charge and energy charge will be the same for all rate 
schedules. These rate schedules are necessary to accommodate the 
transmission and scheduling arrangements that are available in the 
Kerr-Philpott System.

Rate Schedule VA-1-B

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted and scheduled pursuant to 
contracts between the Government, Virginia Electric and Power Company 
(also known as Dominion Virginia Power [DVP]), and DVP's Transmission 
Operator, currently PJM Interconnection, LLC (PJM).

[[Page 7581]]

Rate Schedule VA-2-B

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted pursuant to contracts between 
the Government, DVP, and PJM. The customer is responsible for providing 
a scheduling arrangement with the Government.

Rate Schedule VA-3-B

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be scheduled pursuant to contracts between 
the Government, DVP, and PJM. The customer is responsible for providing 
a transmission arrangement.

Rate Schedule VA-4-B

    Available to public bodies and cooperatives in the service area of 
DVP and PJM. The customer is responsible for providing a scheduling 
arrangement with the Government and for providing a transmission 
arrangement.

Rate Schedule CP&L-1-B

    Available to public bodies and cooperatives in North Carolina to 
whom power may be transmitted and scheduled pursuant to contracts 
between the Government and Carolina Power & Light (also known as 
Progress Energy Carolinas).

Rate Schedule CP&L-2-B

    Available to public bodies and cooperatives in North Carolina to 
whom power may be transmitted pursuant to contracts between the 
Government and Carolina Power & Light. The customer is responsible for 
providing a scheduling arrangement with the Government.

Rate Schedule CP&L-3-B

    Available to public bodies and cooperatives in North Carolina to 
whom power may be scheduled pursuant to contracts between the 
Government and Carolina Power & Light. The customer is responsible for 
providing a transmission arrangement.

Rate Schedule CP&L-4-B

    Available to public bodies and cooperatives in the service area of 
Carolina Power & Light. The customer is responsible for providing a 
scheduling arrangement with the Government and for providing a 
transmission arrangement.

Rate Schedule AP-1-B

    Available to public bodies and cooperatives in Virginia to whom 
power may be transmitted and scheduled pursuant to contracts between 
the Government, American Electric Power Service Corporation and the 
American Electric Power Service Corporation's Transmission Operator, 
currently and the PJM Interconnection, LLC (PJM).

Rate Schedule AP-2-B

    Available to public bodies and cooperatives in Virginia to whom 
power may be transmitted pursuant to contracts between the Government, 
American Electric Power Service Corporation, and PJM. The customer is 
responsible for providing a scheduling arrangement with the Government.

Rate Schedule AP-3-B

    Available to public bodies and cooperatives in Virginia to whom 
power may be scheduled pursuant to contracts between the Government, 
American Electric Power Service Corporation, and PJM. The customer is 
responsible for providing a transmission arrangement.

Rate Schedule AP-4-B

    Available to public bodies and cooperatives in the service area of 
American Electric Power Service Corporation and PJM. The customer is 
responsible for providing a scheduling arrangement with the Government 
and for providing a transmission arrangement.

Rate Schedule NC-1-B

    Available to public bodies and cooperatives in Virginia and North 
Carolina to whom power may be transmitted pursuant to a contract 
between the Government and PJM and scheduled pursuant to a contract 
between the Government and Carolina Power & Light.

Rate Schedule Replacement-2

    This rate schedule shall be applicable to the sale energy purchased 
to meet contract minimum energy and sold under appropriate contracts 
between the Government and the Customer.
    The referenced repayment studies are available for examination at 
1166 Athens Tech Road, Elberton, GA 30635. Proposed Rate Schedules VA-
1-B, VA-2-B, VA-3-B, VA-4-B, CP&L-1-B, CP&L-2-B, CP&L-3-B, CP&L-4-B, 
AP-1-B, AP-2-B, AP-3-B, AP-4-B, NC-1-A, and Replacement-2 are also 
available.

    Dated: February 10, 2010.
Kenneth E. Legg,
Administrator.
[FR Doc. 2010-3344 Filed 2-19-10; 8:45 am]
BILLING CODE 6450-01-P
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