Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2521 

977TH—MEETING, REGULAR MEETING, JANUARY 19, 2012, 10 A.M.—Continued 

Item No. Docket No. Company 

Gas 

G–1 ........ RM11–4–000 .................................................................................. Storage Reporting Requirements of Interstate and Intrastate Natural Gas Companies. 

G–2 ........ OR11–21–000 ................................................................................ Kenai Pipe Line Company; Tesoro Alaska Company and Tesoro 

Logistics Operations, LLC. 

G–3 ........ RP11–1432–000, ............................................................................

RP11–1432–001 

ETC Tiger Pipeline, LLC. 

Hydro 

H–1 ........ P–7269–029 ................................................................................... James B. Boyd and Janet A. Boyd. 

Certificates 

C–1 ........ CP11–531–000 ............................................................................... Golden Triangle Storage, Inc. 

C–2 ........ CP11–46–000 ................................................................................. Kern River Gas Transmission Company. 

Dated: January 12, 2012. 

Kimberly D. Bose, 

Secretary. 

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[FR Doc. 2012–906 Filed 1–13–12; 11:15 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Southwestern Power Administration 

Integrated System Power Rates 

AGENCY: Southwestern Power 

Administration, DOE. 

ACTION: Notice of Rate Order. 

SUMMARY: Pursuant to Delegation Order 

Nos. 00–037.00, effective December 6, 

2001, and 00–001.00C, effective January 

31, 2007, the Deputy Secretary has 

approved and placed into effect on an 

interim basis Rate Order No. SWPA–63, 

which increases the power rates for the 

Integrated System pursuant to the 

Integrated System Rate Schedules which 

supersede the existing rate schedules. 

DATES: The effective period for the rate 

schedules specified in Rate Order No. 

SWPA–63 is January 1, 2012, through 

September 30, 2015. 

FOR FURTHER INFORMATION CONTACT: Mr. 

James K. McDonald, Administrator, 

Southwestern Power Administration, 

Department of Energy, Williams Center 

Tower I, One West Third Street, Tulsa, 

Oklahoma 74103, (918) 595–6690, 

jim.mcdonald@swpa.gov. 

SUPPLEMENTARY INFORMATION: Rate Order 

No. SWPA–63, which has been 

approved and placed into effect on an 

interim basis, increases the power rates 

for the Integrated System pursuant to 

the following Integrated System Rate 

Schedules: 

Rate Schedule P–11, Wholesale Rates 

for Hydro Peaking Power; 

Rate Schedule NFTS–11, Wholesale 

Rates for Non-Federal Transmission/ 

Interconnection Facilities Service; 

Rate Schedule EE–11, Wholesale Rate 

for Excess Energy. 

The rate schedules supersede the 

existing rate schedules shown below: 

Rate Schedule P–09, Wholesale Rates 

for Hydro Peaking Power (superseded 

by P–11); 

Rate Schedule NFTS–09, Wholesale 

Rates for Non-Federal Transmission/ 

Interconnection Facilities Service 

(superseded by NFTS–11); 

Rate Schedule EE–09, Wholesale Rate 

for Excess Energy (superseded by EE– 

11). 

Southwestern Power Administration’s 

(Southwestern) Administrator has 

determined based on the 2011 

Integrated System Current Power 

Repayment Study, that existing rates 

will not satisfy cost recovery criteria 

specified in Department of Energy Order 

No. RA 6120.2 and Section 5 of the 

Flood Control Act of 1944. The finalized 

2011 Integrated System Power 

Repayment Studies (PRSs) indicate that 

an increase in annual revenue of 

$9,569,425, or 5.4 percent, beginning 

January 1, 2012, will satisfy cost 

recovery criteria for the Integrated 

System projects. The proposed 

Integrated System rate schedules would 

increase annual revenues from 

$177,191,800 to $186,761,225, to 

recover increased investments and 

replacements in the hydroelectric 

generating and transmission facilities 

and increased operations and 

maintenance costs for both 

Southwestern and the U.S. Army’s 

Corps of Engineers (Corps). 

Additionally, the PRS analyzes the 

Purchased Power Deferral Account 

which indicated a reduction was needed 

for the Purchased Power Adder which is 

used to recover average year purchased 

energy costs. This proposal also 

continues the size and frequency of the 

Administrator’s Discretionary 

Purchased Power Adder Adjustment 

(Adjustment). This Adjustment allows 

the Administrator to adjust the 

Purchased Power Adder twice annually, 

limited to ±$0.0062 per kilowatthour 

per year as necessary, at his/her 

discretion, under a formula-type rate, 

with notification to the Federal Energy 

Regulatory Commission, to regulate the 

account at a level that will recover 

purchased power costs. 

The Administrator has followed Title 

10, Part 903 Subpart A, of the Code of 

Federal Regulations, ‘‘Procedures for 

Public Participation in Power and 


tkelley on DSK3SPTVN1PROD with NOTICES
2522 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

Transmission Rate Adjustments and 

Extensions’’ in connection with the 

proposed rate schedule. On August 8, 

2011, Southwestern published notice in 

the Federal Register, (76 FR 48159), of 

a 60-day comment period, together with 

a combined Public Information and 

Comment Forum, to provide an 

opportunity for customers and other 

interested members of the public to 

review and comment on the proposed 

rate increase for the Integrated System. 

The forum was canceled because 

Southwestern did not receive any 

requests that a forum be held. Written 

comments were accepted through 

October 7, 2011. No comments were 

received. 

Information regarding this rate 

proposal, including studies and other 

supporting material, is available for 

public review and comment in the 

offices of Southwestern Power 

Administration, Williams Center Tower 

I, One West Third Street, Tulsa, 

Oklahoma 74103. Following review of 

Southwestern’s proposal within the 

Department of Energy, I approved, Rate 

Order No. SWPA–63, on an interim 

basis, which increases the existing 

Integrated System annual revenue 

requirement to $186,761,225 per year 

for the period January 1, 2012 through 

September 30, 2015. 

Dated: January 9, 2012. 

Daniel Poneman, 

Deputy Secretary. 

United States of America 

Department of Energy 

Deputy Secretary of Energy 

In the matter of: Southwestern Power 

Administration; Rate Order; Integrated 

System Rates; No. SWPA–63 

Order Confirming, Approving and 

Placing Increased Power Rate 

Schedules in Effect 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. 00–037.00, the 

Secretary of Energy delegated to the 

Administrator of Southwestern the 

authority to develop power and 

transmission rates, delegated to the 

Deputy Secretary of the Department 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. The Deputy 

Secretary issued this interim rate order 

pursuant to that delegation. 

Background 

FERC confirmation and approval of 

the following Integrated System 

(System) rate schedules was provided in 

FERC Docket No. EF10–4–000 issued on 

October 4, 2010, (133 FERC ¶ 62,005) 

effective for the period January 1, 2010, 

through September 30, 2013: 

Rate Schedule P–09, Wholesale Rates 

for Hydro Peaking Power; 

Rate Schedule NFTS–09, Wholesale 

Rates for Non-Federal Transmission/ 

Interconnection Facilities Service; 

Rate Schedule EE–09, Wholesale Rate 

for Excess Energy. 

Southwestern prepared a 2011 

Current Power Repayment Study (PRS) 

which indicated that the existing rates 

would not satisfy present financial 

criteria regarding repayment of 

investment within a 50-year period due 

to increased investments, replacements 

and operations and maintenance 

expenses in the U.S. Army Corps of 

Engineers (Corps) hydroelectric 

generating facilities and Southwestern’s 

transmission facilities. The Revised PRS 

indicated the need for a 5.4 percent 

revenue increase. These preliminary 

results which presented the basis for the 

proposed revenue increase were 

provided to the customers for their 

review prior to the formal process. 

The final 2011 Revised PRS indicates 

that an increase in annual revenues of 

$9,569,425 (5.4 percent) is necessary 

beginning January 1, 2012, to 

accomplish repayment in the required 

number of years. Accordingly, 

Southwestern has prepared proposed 

rate schedules based on the additional 

revenue requirement and the 2011 Rate 

Design Study which allocates the 

revenue requirement to the various 

System rate schedules to ensure 

repayment. 

Title 10, Part 903, Subpart A of the 

Code of Federal Regulations, 

‘‘Procedures for Public Participation in 

Power and Transmission Rate 

Adjustments and Extensions,’’ has been 

followed in connection with the 

proposed rate adjustments. More 

specifically, opportunities for public 

review and comment on proposed 

System power rates during a 60-day 

period were announced by notice 

published in the Federal Register, 

August 8, 2011, (76 FR 48159). The 

consultation and comment period was 

shortened from the 90 days provided for 

in the regulations by the Administrator 

in accordance with Sec. 903.14 of 10 

CFR part 903, because Southwestern 

held a pre-issuance consultation with 

customers. A Public Information and 

Comment Forum scheduled for August 

30, 2011, in Tulsa, Oklahoma, was 

canceled because Southwestern did not 

receive any requests that a forum be 

held. No request for information or 

copies of the proposed Power 

Repayment and Rate Design Studies 

were received from any customers or 

interested parties during the formal 

period of public participation. Written 

comments were due by October 7, 2011. 

No comments were received during 

the public participation process on 

Southwestern’s preliminary results. 

Following the conclusion of the 

comment period on October 7, 2011, the 

2011 Power Repayment and Rate Design 

Studies were finalized. The 

Administrator made the decision to 

submit the rate proposal for interim 

approval and implementation. 

Discussion 

General 

The existing rate schedules as 

developed in the 2009 Integrated 

System PRS were the basis for the 

revenue determination in the System 

Current PRS. The Current PRS indicates 

that existing rates are insufficient to 

produce the annual revenues necessary 

to accomplish repayment of the capital 

investment as required by Section 5 of 

the Flood Control Act of 1944 and 

Department of Energy (DOE) Order No. 

RA 6120.2. 

The Revised PRS indicates it is 

necessary to increase annual revenues 

by $9,569,425 or 5.4 percent, which 

satisfies the cost recovery criteria 

outlined in DOE Order No. RA 6120.2 

and Section 5 of the Flood Control Act 

of 1944. 

In Southwestern’s 2011 Rate Design 

proposal, rates were designed to recover 

the additional revenue requirements. 

The monthly demand charge for the sale 

of Federal hydroelectric power has 

increased. The base energy and 

supplemental energy charges also reflect 

an increase over the current rate. In 

addition, transmission charges for nonFederal, firm service have increased. 

Those customers taking transformation 

service will see no change in that rate 

component. The increases to the 

transmission charges are due to 

including projected additions and 

replacements to Southwestern’s aging 

transmission facilities since the last rate 

change and a transmission specific cost 

related to participation in the Southwest 

Power Pool Regional Transmission 

Organization. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2523 

1Supersedes Rate Schedule P–09. 

1Supersedes Rate Schedule P–09. 

Consistent with FERC’s Order No. 

888, Southwestern will continue 

charging for the six ancillary services 

under Rate Schedule P–11 and Rate 

Schedule NFTS–11, and offering nonFederal transmission service under Rate 

Schedule NFTS–11. Southwestern’s rate 

design has separated the six ancillary 

services for all transmission service. 

Two ancillary services, Scheduling, 

System Control and Dispatch Service 

together with Reactive and Voltage 

Support Service, are required for every 

transmission transaction. These charges 

are also a part of the capacity rate for 

Federal power. This is consistent with 

Southwestern’s long-standing practice 

of charging for the sale and delivery of 

Federal power in its Federal demand 

charge. The four remaining ancillary 

services will be made available to any 

transmission user within 

Southwestern’s balancing area, 

including Federal power customers. The 

rate schedules for Peaking Power and 

Non-Federal Transmission Service 

reflect these charges. Network 

transmission service is provided to 

those who have contracted for the 

service, but only for non-Federal 

deliveries. The rate for and application 

of this service are identified in the NonFederal Transmission/Interconnection 

Facilities Service Rate Schedule, NFTS– 

11. 

With respect to the Purchased Power 

Adder (Adder), Southwestern proposed, 

as in all previous proposals beginning 

with the 1983 implementation of the 

purchased power rate component, that 

the Adder is set equal to the current 

average long-term purchased power 

revenue requirement. As shown in the 

Rate Design Study, the amount is 

determined by dividing the estimated 

total average direct purchased power 

costs by Southwestern’s total annual 

contractual 1200-hour peaking energy 

commitments to the customers 

(exclusive of contract support 

arrangements). In Southwestern’s rate 

proposal, the resulting Adder decreases 

from the current $0.0067 per kWh of 

peaking energy to $0.0062 per kWh of 

peaking energy. The total revenue 

created through application of this 

Adder should enable Southwestern to 

cover its average annual purchased 

power costs. 

Comments and Responses 

Southwestern received no comments 

or questions during the public 

participation period. 

Availability of Information 

Information regarding this rate 

proposal, including studies, comments 

and other supporting material, is 

available for public review and 

comment in the offices of Southwestern 

Power Administration, One West Third 

Street, Tulsa, OK 74103. 

Administration’s Certification 

The June 2011 Revised PRS indicates 

that the increased power rates 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. In accordance 

with Delegation Order No. 00–037.00 

(December 6, 2001), and Section 5 of the 

Flood Control Act of 1944, the 

Administrator has determined that the 

proposed System rates are consistent 

with applicable law and the lowest 

possible rates consistent with sound 

business principles. 

Environment 

The environmental impact of the 

proposed System rates was evaluated in 

consideration of DOE’s guidelines for 

implementing the procedural provisions 

of the National Environmental Policy 

Act and was determined to fall within 

the class of actions that are categorically 

excluded from the requirements of 

preparing either an Environmental 

Impact Statement or an Environmental 

Assessment. 

Order 

In view of the foregoing and pursuant 

to the authority delegated to me by the 

Secretary of Energy, I hereby confirm, 

approve and place in effect on an 

interim basis, effective January 1, 2012, 

the following Southwestern Integrated 

System Rate Schedules which shall 

remain in effect on an interim basis 

through September 30, 2015, or until the 

FERC confirms and approves the rates 

on a final basis. 

Dated: January 9, 2012. 

Daniel Poneman, 

Deputy Secretary. 

United States Department of Energy 

Southwestern Power Administration 

Rate Schedule P–11 1

Wholesale Rates for Hydro Peaking 

Power 

Effective: 

During the period January 1, 2012, 

through September 30, 2015, in 

accordance with interim approval from 

Rate Order No. SWPA–63 issued by the 

Deputy Secretary of Energy on January 

9, 2012, and pursuant to final approval 

by the Federal Energy Regulatory 

Commission. 

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 

1.1. 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: 

1.1.1. 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. 

1.1.2. 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. 

1.1.3. 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. 

1.1.4. Spinning Operating Reserve 

Service maintains generating units online, 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. 

1.1.5. 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. 

1.1.6. Energy Imbalance Service 

corrects for differences over a period of 

time between schedules and actual 


tkelley on DSK3SPTVN1PROD with NOTICES
2524 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

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. 

1.2. Customer 

The entity which is utilizing and/or 

purchasing Federal Power and Federal 

Energy and services from Southwestern 

pursuant to this Rate Schedule. 

1.3. 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. 

1.4. Federal Power and Energy 

The power and energy provided from 

the System of Southwestern. 

1.5. 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. 

1.6. Peaking Billing Demand 

The quantity equal to the Peaking 

Contract Demand for any month unless 

otherwise provided by the Customer’s 

Power Sales Contract. 

1.7. 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. 

1.8. 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. 

1.9. Power Sales Contract 

The Customer’s contract with 

Southwestern for the sale of Federal 

Power and Federal Energy. 

1.10. 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. 

1.11. 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. 

1.12. 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, war, riot, civil disturbance, 

labor disturbance, sabotage, 

Congressional act, 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. 

2.1. Hydro Peaking Power Rates, Terms, 

and Conditions 

2.1.1. Monthly Capacity Charge for 

Hydro Peaking Power 

$4.29 per kilowatt of Peaking Billing 

Demand. 

2.1.2. 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. 

2.1.3. 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: 

2.1.3.1. 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; 

2.1.3.2. The non-Federal energy 

transmitted under such secondary 

service is delivered to the Customer’s 

point of delivery for Hydro Peaking 

Power; 

2.1.3.3. The Customer commits to 

provide Real Power Losses associated 

with such deliveries of non-Federal 

energy; and 

2.1.4. 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. 

2.1.5. 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 × K × 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 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2525 

Hydro Peaking Power and Peaking 

Energy. 

2.2. Peaking Energy and Supplemental 

Peaking Energy Rates, Terms, and 

Conditions 

2.2.1. Peaking Energy Charge 

$0.0091 per kilowatthour of Peaking 

Energy delivered plus the Purchased 

Power Adder as defined in Section 2.2.3 

of this Rate Schedule. 

2.2.2. Supplemental Energy Charge 

$0.0091 per kilowatthour of 

Supplemental Peaking Energy delivered. 

2.2.3. Purchased Power Adder 

A purchased power adder of $0.0062 

per kilowatthour of Peaking Energy 

delivered, as adjusted by the 

Administrator, Southwestern, in 

accordance with the procedure within 

this Rate Schedule. 

2.2.3.1. 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’’). 

2.2.3.2. Procedure for Determining Net 

Purchased Power Adder Adjustment 

Not more than twice annually, the 

Purchased Power Adder of $0.0062 (6.2 

mills) per kilowatthour of Peaking 

Energy, as noted in this Rate Schedule, 

may be adjusted by the Administrator, 

Southwestern, by an amount up to a 

total of ±$0.0062 (6.2 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 $0.0062 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 

($13,838,800 per year) of Southwestern’s 

System Direct Purchases used as the 

basis for the Purchased Power Adder of 

$0.0062 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 $0.0062 per 

kilowatthour Purchased Power Adder. 

2.3. Transformation Service Rates, 

Terms, and Conditions 

2.3.1. Monthly Capacity Charge for 

Transformation Service 

$0.42 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. 

2.3.2. 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. 

2.4. Ancillary Services Rates, Terms, 

and Conditions 

2.4.1. Capacity Charges for Ancillary 

Services 

2.4.1.1. Regulation and Frequency 

Response Service 

Monthly rate of $0.09 per kilowatt of 

Peaking Billing Demand plus the 

Regulation Purchased Adder as defined 

in Section 2.4.5 of this Rate Schedule. 

2.4.1.2. Spinning Operating Reserve 

Service 

Monthly rate of $0.0112 per kilowatt 

of Peaking Billing Demand. 

Daily rate of $0.00051 per kilowatt for 

non-Federal generation inside 

Southwestern’s Balancing Authority 

Area. 

2.4.1.3. Supplemental Operating 

Reserve Service 

Monthly rate of $0.0112 per kilowatt 

of Peaking Billing Demand. 

Daily rate of $0.00051 per kilowatt for 

non-Federal generation inside 

Southwestern’s Balancing Authority 

Area. 

2.4.1.4. Energy Imbalance Service 

$0.0 per kilowatt for all reservation 

periods. 

2.4.2. 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. 

2.4.3. 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. 

2.4.4. 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, 


tkelley on DSK3SPTVN1PROD with NOTICES
2526 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

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 

January 1 of the subsequent calendar 

year; Provided, That, such Customers 

shall be assessed for all costs incurred 

by Southwestern for the Regulation 

Purchased Adder for the calendar year 

in which they give notice. Such 

assessment will be paid in twelve equal 

monthly payments during the 

subsequent calendar year. 

2.4.5. Regulation Purchased Adder 

At Southwestern’s sole discretion, 

Southwestern may make a 

determination that additional regulation 

purchases are necessary in order to meet 

Southwestern’s Balancing Authority 

Area requirements. Such regulation 

purchases shall be provided for through 

the Regulation Purchased Adder, which 

shall be estimated annually before May 

1. Southwestern will provide written 

notice to the Customer of the estimated 

Regulation Purchased Adder charge to 

be recovered during the time period of 

January 1 through December 31 of the 

next calendar year; Provided, That, 

should Southwestern incur additional 

regulation costs beyond the initial 

estimate, such costs will be recovered in 

the Regulation Purchased Adder for the 

calendar year following when such costs 

were incurred. 

2.4.5.1. Applicability of Regulation 

Purchased Adder 

The costs for regulation purchases 

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– 

11, then it shall not be applied here. 

2.4.5.2. 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 all costs incurred 

by Southwestern for regulation 

purchases from the previous calendar 

year. 

RPA = The Regulation Purchased Adder 

for an individual Customer per 

month, which is as follows: 

[(LCustomer ÷ LTotal) × RPTotal] ÷ 12 

with the factors defined as follows: 

LCustomer = 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* during the previous 

calendar year, and 

(3) The Customer’s highest rate of 

Scheduled Imports* during the previous 

calendar year. 

LTotal = The sum of all LCustomer factors for all 

Customers inside Southwestern’s 

Balancing Authority Area in MW. 

RPTotal = The cost in dollars and cents of all 

capacity and ‘‘net energy’’ purchases 

made by Southwestern during the 

previous calendar year to support 

Southwestern’s ability to regulate within 

its Balancing Authority Area. The cost in 

dollars and cents associated with ‘‘net 

energy’’ purchases shall be adjusted by 

subtracting the product of the quantity of 

such energy purchased in MWh and 

Southwestern’s highest rate in dollars 

per MWh for Supplemental Peaking 

Energy during the previous calendar 

year. 

* 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. The Scheduled Exports and 

Scheduled Imports for calendar year 

2011 shall not factor into the Customers’ 

Regulation Purchased Adders for 

calendar year 2012. 

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. 

2.4.6. 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 NonFederal 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 

3.1. Capacity Overrun Penalty 

3.1.1. 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 

3.1.2. 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. 

3.2. Energy Overrun Penalty 

3.2.1. Penalty Charge for Energy 

Overrun 

$0.1001 per kilowatthour for each 

kilowatthour of overrun. 


tkelley on DSK3SPTVN1PROD with NOTICES
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1Supersedes Rate Schedule NFTS–09. 

3.2.2. 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. 

3.3. 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: 

PF = (kWh) ÷ √ (kWh2 + rkVAh2) 

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 × (0.95¥LPF) × $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. Hydro Peaking Power Miscellaneous 

Rates, Terms, and Conditions 

4.1. 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 × 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: 

4.1.1. 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. 

4.1.2. 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. 

4.1.3. 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-ofmonth loss energy balance to zero (0) 

megawatthours and the Customer shall 

be obliged to purchase such energy at 

the following rates: 

Months associated with charge Rate per 

kilowatthour 

March, April, May, October, November, December ................ $0.15 

January, February, June, July, 

August, September ................ 0.30 

4.1.4. 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–11 1

Wholesale Rates for Non-Federal 

Transmission/Interconnection Facilities 

Service 

Effective: During the period January 1, 

2012, through September 30, 2015, in 

accordance with interim approval from 

Rate Order No. SWPA–63 issued by the 

Deputy Secretary of Energy on January 

9, 2012, and pursuant to final approval 

by the Federal Energy Regulatory 

Commission. 


tkelley on DSK3SPTVN1PROD with NOTICES
2528 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

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 

1.1. 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: 

1.1.1. 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. 

1.1.2. 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. 

1.1.3. 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. 

1.1.4. Spinning Operating Reserve 

Service maintains generating units online, 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. 

1.1.5. 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. 

1.1.6. 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. 

1.2. Customer 

The entity which is utilizing and/or 

purchasing services from Southwestern 

pursuant to this Rate Schedule. 

1.3. 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. 

1.4. 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. 

1.5. 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. 

1.6. 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. 

1.7. 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. 

1.8. 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. 

1.9. 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 asavailable, 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 asavailable, 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. 

1.10. 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: 

1.10.1. Firm Transmission Service 

Agreement provides for reserved 

transmission capacity on a firm basis, 

for a particular point-to-point delivery 

path. 

1.10.2. 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. 

1.10.3. 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. 

1.10.4. Non-Firm Transmission 

Service Agreement provides for the 

Customer to request transmission 

service on a non-firm basis. 

1.11. Service Request 

The request made under a 

Transmission Service Agreement 

through the Southwest Power Pool, Inc. 

(hereinafter ‘‘SPP’’) Open Access SameVerDate Mar<15>2010 16:07 Jan 17, 2012 Jkt 226001 PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 E:\FR\FM\18JAN1.SGM 18JAN1

tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2529 

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. 

1.12. 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. Transmission Service Transaction 

A Service Request that has been 

approved by SPP. 

1.14. 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, war, riot, civil disturbance, 

labor disturbance, sabotage, 

Congressional act, 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 Pointto-Point Transmission Service, Network 

Integration Transmission Service, and 

Interconnection Facilities Service 

2.1. Firm Point-to-Point Transmission 

Service Rates, Terms, and Conditions 

2.1.1. Monthly Capacity Charge for Firm 

Point-to-Point Transmission Service 

$1.28 per kilowatt of transmission 

capacity reserved in increments of one 

month of service or invoiced in 

accordance with a longer term 

agreement. 

2.1.2. Weekly Capacity Charge for Firm 

Point-to-Point Transmission Service 

$0.320 per kilowatt of transmission 

capacity reserved in increments of one 

week of service. 

2.1.3. Daily Capacity Charge for Firm 

Point-to-Point Transmission Service 

$0.0582 per kilowatt of transmission 

capacity reserved in increments of one 

day of service. 

2.1.4. Services Associated With 

Capacity Charge for Firm Point-to-Point 

Transmission Service 

The capacity charge for Firm Point-toPoint Transmission Service includes 

Secondary Transmission Service, but 

does not include charges for Ancillary 

Services associated with actual 

schedules. 

2.1.5. Applicability of Capacity Charge 

for Firm Point-to-Point Transmission 

Service 

Capacity charges for Firm Point-toPoint 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. 

2.2. Non-Firm Point-to-Point 

Transmission Service Rates, Terms, and 

Conditions 

2.2.1. Monthly Capacity Charge for NonFirm 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. 

2.2.2. Weekly Capacity Charge for NonFirm Point-to-Point Transmission 

Service 

80 percent of the monthly capacity 

charge divided by 4 for Firm Point-toPoint Transmission Service reserved in 

increments of one week. 

2.2.3. Daily Capacity Charge for NonFirm Point-to-Point Transmission 

Service 

80 percent of the monthly capacity 

charge divided by 22 for Firm Point-toPoint Transmission Service reserved in 

increments of one day. 

2.2.4. Hourly Capacity Charge for NonFirm Point-to-Point Transmission 

Service 

80 percent of the monthly capacity 

charge divided by 352 for Firm Point-toPoint Transmission Service reserved in 

increments of one hour. 

2.2.5. Applicability of Charges for NonFirm Point-to-Point Transmission 

Service 

Capacity charges for Non-Firm Pointto-Point Transmission Service are 

applied to quantities reserved under a 

Transmission Service Transaction, and 

do not include charges for Ancillary 

Services. 

2.3. Network Integration Transmission 

Service Rates, Terms, and Conditions 

2.3.1. Annual Revenue Requirement for 

Network Integration Transmission 

Service 

$14,267,100. 

2.3.2. Monthly Revenue Requirement for 

Network Integration Transmission 

Service 

$1,188,925. 

2.3.3. Net Capacity Available for 

Network Integration Transmission 

Service 

930,000 kilowatts. 

2.3.4. Monthly Capacity Charge for 

Network Integration Transmission 

Service 

$1.28 per kilowatt of Network Load 

(charge derived from $1,188,925 ÷ 

930,000 kilowatts). 

2.3.5. 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 


tkelley on DSK3SPTVN1PROD with NOTICES
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Ancillary Services shall also be 

assessed. 

2.4. Interconnection Facilities Service 

Rates, Terms, and Conditions 

2.4.1. Monthly Capacity Charge for 

Interconnection Facilities Service 

$1.28 per kilowatt. 

2.4.2. 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. 

2.5. Transformation Service Rates, 

Terms, and Conditions 

2.5.1. Monthly Capacity Charge for 

Transformation Service 

$0.42 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. 

2.5.2. 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. 

2.6. Ancillary Services Rates, Terms, 

and Conditions 

2.6.1. Capacity Charges for Ancillary 

Services 

2.6.1.1. 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 LongTerm 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 nonfirm transmission service. 

2.6.1.2. 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 LongTerm 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 nonfirm transmission service. 

2.6.1.3. Regulation and Frequency 

Response 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 LongTerm 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 $0.023 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 $0.0041 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 $0.00026 per kilowatt 

of transmission energy delivered as nonfirm transmission service plus the 

Regulation Purchased Adder as defined 

in Section 2.6.5 of this Rate Schedule. 

2.6.1.4. Spinning Operating Reserve 

Service 

Monthly rate of $0.0112 per kilowatt 

of transmission capacity reserved in 

increments of one month of service or 

invoiced in accordance with a LongTerm Firm Transmission Service 

Agreement or Network Transmission 

Service Agreement. 

Weekly rate of $0.0028 per kilowatt of 

transmission capacity reserved in 

increments of one week of service. 

Daily rate of $0.00051 per kilowatt of 

transmission capacity reserved in 

increments of one day of service. 

Hourly rate of $0.00003 per kilowatt 

of transmission energy delivered as nonfirm transmission service. 

2.6.1.5. Supplemental Operating 

Reserve Service 

Monthly rate of $0.0112 per kilowatt 

of transmission capacity reserved in 

increments of one month of service or 

invoiced in accordance with a LongTerm Firm Transmission Service 

Agreement or Network Transmission 

Service Agreement. 

Weekly rate of $0.0028 per kilowatt of 

transmission capacity reserved in 

increments of one week of service. 

Daily rate of $0.00051 per kilowatt of 

transmission capacity reserved in 

increments of one day of service. 

Hourly rate of $0.00003 per kilowatt 

of transmission energy delivered as nonfirm transmission service. 

2.6.1.6. Energy Imbalance Service 

$0.0 per kilowatt for all reservation 

periods. 

2.6.2. 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 


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Southwestern’s approval, they are 

provided by others. 

2.6.3. 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. 

2.6.4. 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 

January 1 of the subsequent calendar 

year; Provided, That, such Customers 

shall be assessed for all costs incurred 

by Southwestern for the Regulation 

Purchased Adder for the calendar year 

in which they give notice. Such 

assessment will be paid in twelve equal 

monthly payments during the 

subsequent calendar year. 

2.6.5. Regulation Purchased Adder 

At Southwestern’s sole discretion, 

Southwestern may make a 

determination that additional regulation 

purchases are necessary in order to meet 

Southwestern’s Balancing Authority 

Area requirements. Such regulation 

purchases shall be provided for through 

the Regulation Purchased Adder, which 

shall be estimated annually before May 

1. Southwestern will provide written 

notice to the Customer of the estimated 

Regulation Purchased Adder charge to 

be recovered during the time period of 

January 1 through December 31 of the 

next calendar year; Provided, That, 

should Southwestern incur additional 

regulation costs beyond the initial 

estimate, such costs will be recovered in 

the Regulation Purchased Adder for the 

calendar year following when such costs 

were incurred. 

2.6.5.1. Applicability of Regulation 

Purchased Adder 

The costs for regulation purchases 

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–11, 

then it shall not be applied here. 

2.6.5.2. 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 all costs incurred 

by Southwestern for regulation 

purchases from the previous calendar 

year. 

RPA = The Regulation Purchased Adder 

for an individual Customer per 

month, which is as follows: 

[(LCustomer ÷ LTotal) × RPTotal] ÷ 12 

with the factors defined as follows: 

LCustomer = 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* during the previous 

calendar year, and 

(3) The Customer’s highest rate of 

Scheduled Imports* during the previous 

calendar year. 

LTotal = The sum of all LCustomer factors for all 

Customers inside Southwestern’s 

Balancing Authority Area in MW. 

RPTotal = The cost in dollars and cents of all 

capacity and ‘‘net energy’’ purchases 

made by Southwestern during the 

previous calendar year to support 

Southwestern’s ability to regulate within 

its Balancing Authority Area. The cost in 

dollars and cents associated with ‘‘net 

energy’’ purchases shall be adjusted by 

subtracting the product of the quantity of 

such energy purchased in MWh and 

Southwestern’s highest rate in dollars 

per MWh for Supplemental Peaking 

Energy during the previous calendar 

year. 

*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. The Scheduled Exports and 

Scheduled Imports for calendar year 

2011 shall not factor into the Customers’ 

Regulation Purchased Adders for 

calendar year 2012. 

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. 

2.6.6. 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 


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2532 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

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 

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: 

PF = (kWh) ÷ √ (kWh2 + rkVAh2) 

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 × (0.95 ¥ LPF) × $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 

4.1. 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 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2533 

1Supersedes Rate Schedule EE–09. 

month on a megawatthour basis as 

follows: 

ML = 0.04 × 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: 

4.1.1. 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. 

4.1.2. 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. 

4.1.3. 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-ofmonth loss energy balance to zero (0) 

megawatthours and the Customer shall 

be obliged to purchase such energy at 

the following rates: 

Months associated with charge Rate per 

kilowatthour 

March, April, May, October, November, December ................ $0.15 

January, February, June, July, 

August, September ................ 0.30 

4.1.4. 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 EE–11 1

Wholesale Rates for Excess Energy 

Effective: During the period January 1, 

2012, through September 30, 2015, in 

accordance with interim approval from 

Rate Order No. SWPA–63 issued by the 

Deputy Secretary of Energy on January 

9, 2012, and pursuant to final approval 

by the Federal Energy Regulatory 

Commission. 

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 

$0.0091 per kilowatthour of Excess 

Energy delivered. 

[FR Doc. 2012–801 Filed 1–17–12; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF ENERGY 

Western Area Power Administration 

Boulder Canyon Project 

AGENCY: Western Area Power 

Administration, DOE. 

ACTION: Notice of Proposed Base Charge 

and Rates. 

SUMMARY: The Western Area Power 

Administration (Western), a power 

marketing administration within the 

Department of Energy (DOE), is 

proposing an adjustment to the Boulder 

Canyon Project (BCP) electric service 

base charge and rates. The current base 

charge and rates expire September 30, 

2012, under Rate Schedule BCP–F8. The 

existing base charge is being adjusted to 

ensure it includes all annual costs 

including operation, maintenance, 

replacements, interest expense, and to 

repay investment obligations within the 

required period. The proposed base 

charge will provide sufficient revenue to 

cover all annual costs and to repay 

investment obligations within the 

allowable period. A detailed rate 

package that identifies the reasons for 

the base charge and rates adjustment 

will be available in March 2012. The 

proposed base charge and rates are 

scheduled to become effective October 

1, 2012, and will remain in effect 

through September 30, 2013. This 

Federal Register notice initiates the 

formal process for the proposed base 

charge and rates. 

DATES: The consultation and comment 

period will begin today and will end 

April 17, 2012. Western will present a 

detailed explanation of the proposed 

base charge and rates at a public 

information forum March 28, 2012, 

beginning at 10:30 a.m. Mountain 

Standard Time (MST), in Phoenix, 

Arizona. Western will accept oral and 

written comments at a public comment 

forum April 11, 2012, beginning at 10:30 

a.m. MST, at the same location. Western 

will accept written comments any time 

during the consultation and comment 

period. 

ADDRESSES: The public information 

forum and public comment forum will 

be held at the Desert Southwest 

Customer Service Regional Office, 

located at 615 South 43rd Avenue, 

Phoenix, Arizona, on the dates cited 

above. Written comments should be sent 

to Darrick Moe, Regional Manager, 

Desert Southwest Customer Service 

Region, Western Area Power 

Administration, P.O. Box 6457, 

Phoenix, AZ 85005–6457, email 

moe@wapa.gov. Written comments may 

also be faxed to (602) 605–2490, 

attention: Jack Murray. Western will 

post information about the rate 

processes on its Web site at http:// 

www.wapa.gov/dsw/pwrmkt/BCP/ 

RateAdjust.htm. Western will also post 

official comments received via letter, 

fax, and email to this Web site. Western 

must receive written comments by the 

end of the consultation and comment 

period to ensure they are considered in 

Western’s decision process. 

As access to Western facilities is 

controlled, any U.S. citizen wishing to 

attend any meeting held at Western 


tkelley on DSK3SPTVN1PROD with NOTICES