[Federal Register Volume 76, Number 6 (Monday, January 10, 2011)]
[Notices]
[Pages 1429-1431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-211]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Loveland Area Projects/Western Area Colorado Missouri Balancing 
Authority--Rate Order No. WAPA-154

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Rate Order Temporarily Extending Loveland Area 
Projects Transmission and Western Area Colorado Missouri Balancing 
Authority Ancillary Services Formula Rates.

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SUMMARY: This action is being taken to temporarily extend the existing 
Loveland Area Projects (LAP) Transmission and Western Area Colorado 
Missouri Balancing Authority (WACM) Ancillary Services Formula Rates 
through February 28, 2013. The existing transmission and ancillary 
services formula rates will expire February 28, 2011, with the 
exception of the Regulation and Frequency Response Service formula rate 
which expires May 31, 2011.

FOR FURTHER INFORMATION CONTACT: Mr. Bradley S. Warren, Regional 
Manager, Rocky Mountain Region, Western Area Power Administration, P.O. 
Box 3700, Loveland, CO 80539-3003, (970) 461-7201, e-mail 
<a href="/cdn-cgi/l/email-protection#86f1e7f4f4e3e8c6f1e7f6e7a8e1e9f0"><span class="__cf_email__" data-cfemail="afd8ceddddcac1efd8cedfce81c8c0d9">[email protected]</span></a>, or Ms. Sheila Cook, Rates Manager, Rocky Mountain 
Region, Western Area Power Administration, P.O. Box 3700, Loveland, CO 
80539-3003, (970) 461-7211, e-mail <a href="/cdn-cgi/l/email-protection#bdceded2d2d6fdcadccddc93dad2cb"><span class="__cf_email__" data-cfemail="b3c0d0dcdcd8f3c4d2c3d29dd4dcc5">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated: (1) The authority 
to develop power and transmission rates to the Administrator of the 
Western Area Power Administration (Western); (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to the Federal Energy Regulatory Commission 
(FERC).

[[Page 1430]]

    The existing formula rates approved under Rate Order No. WAPA-106 
\1\ became effective on March 1, 2004, through February 28, 2009. The 
rates, with the exception of Rate Schedule L-AS3, were extended through 
February 28, 2011, under Rate Order No. WAPA-141.\2\ Rate Schedule L-
AS3, Regulation and Frequency Response Service, was revised and 
approved under Rate Order No. WAPA-118,\3\ which became effective June 
1, 2006, through May 31, 2011. The existing rate formulae methodology 
collects annual revenue sufficient to recover annual expenses, 
including interest and capital requirements, thus ensuring repayment of 
the project costs within the cost recovery criteria set forth in DOE 
Order RA 6120.2. Since the rate formulas were originally extended, 
Western has worked both internally and with customers to evaluate new 
rate requirements and develop new rate formulas for transmission and 
ancillary services. These new requirements are necessary to address 
Western's revised Open Access Transmission Tariff (OATT) that was 
submitted to FERC in October 2009 and approved by FERC on December 2, 
2010, pending an acceptable compliance filing.\4\ Western also made the 
decision that the Rocky Mountain and Desert Southwest Regional Offices 
would work together in an attempt to make their ancillary service rate 
formulas consistent to the extent possible as a result of the 
operations consolidation of the two Regions. These are complex issues 
that have taken a considerable amount of time to resolve. As a result, 
pursuant to 10 CFR 903.23 (b), Western is again temporarily extending 
the existing LAP Transmission and WACM Ancillary Services Formula 
Rates, including Rate Schedule L-AS3, through February 28, 2013, or 
until the rate schedules are superseded. This extension will provide 
the time Western needs to complete the informal and formal public 
process associated with the new rate formulas.
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    \1\ WAPA-106 was approved by FERC on a final basis on January 
31, 2005, in Docket No. EF-04-5182-000 (110 FERC ] 62,084).
    \2\ WAPA-141 Extension of Rate Order No. WAPA 106, 2-year 
extension through February 28, 2011. 73 FR 48382, August 19, 2008.
    \3\ WAPA-118 was approved by FERC on a final basis on November 
17, 2006, in Docket No. EF-06-5182-000 (117 FERC ] 62,163).
    \4\ Western Area Power Administration, 133 FERC ] 61,193 (2010).
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    Western did not have a consultation and comment period and did not 
hold public information and comment forums for this extension, in 
accordance with 10 CFR 903.23(b). Following review of Western's 
proposal with DOE, I hereby approve Rate Order No. WAPA-154 which 
temporarily extends the existing LAP Transmission and WACM Ancillary 
Services rate schedules L-NT1, L-FPT1, L-NFPT1,L-AS1, L-AS2, L-AS3, L-
AS4, L-AS5, L-AS6 and L-AS7 through February 28, 2013.

    Dated: December 30, 2010.
Daniel B. Poneman,
Deputy Secretary.

Order Confirming and Approving a Temporary Extension of the Loveland 
Area Projects Transmission and Western Area Colorado Missouri Balancing 
Authority Ancillary Services Formula Rates

    Section 302(a) of the Department of Energy (DOE) Organization Act 
(42 U.S.C. 7152) transferred to and vested in the Secretary of Energy 
the power marketing functions of the Secretary of the Department of the 
Interior and the Bureau of Reclamation under the Reclamation Act of 
1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by 
subsequent laws, particularly section 9(c) of the Reclamation Project 
Act of 1939 (43 U.S.C. 485h(c)), and other acts that specifically apply 
to the project involved.
    By Delegation Order No. 00-037.00 effective December 6, 2001, the 
Secretary of Energy delegated: (1) The authority to develop power and 
transmission rates to the Administrator of the Western Area Power 
Administration (Western); (2) the authority to confirm, approve, and 
place such rates into effect on an interim basis to the Deputy 
Secretary of Energy; and (3) the authority to confirm, approve, and 
place into effect on a final basis, to remand, or to disapprove such 
rates to the Federal Energy Regulatory Commission (FERC). This rate 
extension is issued pursuant to the Delegation Order and the DOE rate 
extension procedures at 10 CFR 903.23(b).

Background

    Under Rate Order No. WAPA-106, the existing formula rates were 
approved for five (5) years. They were extended, with the exception of 
Rate Schedule L-AS3, under Rate Order No. WAPA-141, effective through 
February 28, 2011. Rate Schedule L-AS3, Regulation and Frequency 
Response Service, was revised and approved through May 31, 2011, under 
Rate Order No. WAPA-118. Western temporarily extends all transmission 
and ancillary service formula rates, including Rate Schedule L-AS3.

Discussion

    Western temporarily extends the existing LAP Transmission and WACM 
Ancillary Services formula rates pursuant to 10 CFR 903.23(b). The 
existing rate formula methodologies collect annual revenue sufficient 
to recover annual expenses (including interest) and capital 
requirements, thus ensuring repayment of the project costs within the 
cost recovery criteria set forth in DOE Order RA 6120.2. Since the rate 
formulas were originally extended, Western has worked both internally 
and with customers to evaluate new rate requirements and develop new 
rate formulas for transmission and ancillary services. These new 
requirements are necessary to address Western's revised Open Access 
Transmission Tariff (OATT) that was submitted to FERC in October 2009 
and approved by FERC on December 2, 2010, pending an acceptable 
compliance filing. Western also made the decision that the Rocky 
Mountain and Desert Southwest Regional Offices would work together in 
an attempt to make their ancillary service rate formulas consistent to 
the extent possible as a result of the operations consolidation of the 
two Regions. These are complex issues that have taken a considerable 
amount of time to resolve. As a result, pursuant to 10 CFR 903.23 (b), 
Western is again temporarily extending the existing LAP Transmission 
and WACM Ancillary Services Formula Rates, including Rate Schedule L-
AS3, through February 28, 2013, or until the rate schedules are 
superseded. This extension will provide the time Western needs to 
complete the informal and formal public process associated with the new 
rate formulas.
    The process to evaluate new rate requirements for transmission and 
ancillary services is complex and will take several months to complete. 
During this time, Western will hold public forums to provide interested 
parties with relevant information and the opportunity to comment on 
Western's proposals. For these reasons, Western extends existing rate 
schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-
AS6 and L-AS7. Western did not have a consultation and comment period 
and did not hold public information and comment forums for this 
extension, in accordance with 10 CFR 903.23(b).

Order

    In view of the above and under the authority delegated to me, I 
hereby extend for a period effective from March 1, 2011, through 
February 28, 2013, the existing rate schedules L-NT1, L-FPT1,

[[Page 1431]]

L-NFPT1, L-AS1, L-AS2, L-AS3, L-AS4, L-AS5, L-AS6 and L-AS7 for LAP 
Transmission and WACM Ancillary Services.

    Dated: December 30, 2010.

Daniel B. Poneman,
Deputy Secretary.

[FR Doc. 2011-211 Filed 1-7-11; 8:45 am]
BILLING CODE 6450-01-P


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