[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Notices]
[Pages 85611-85618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26963]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Western Area Power Administration


Desert Southwest Region--Rate Order No. WAPA-209

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order concerning formula rates for transmission 
and firm electric service.

-----------------------------------------------------------------------

SUMMARY: New formula rates for firm and nonfirm point-to-point (P2P) 
and network integration (Network) transmission service have been 
confirmed, approved, and placed into effect on an interim basis for the 
Desert Southwest Region (DSW) of the Western Area Power Administration 
(WAPA). The revisions to the existing formula rates for Parker-Davis 
Project (PDP) firm electric service (FES) and firm transmission service 
of Salt Lake City Area/Integrated Projects (SLCA/IP) power have also 
been confirmed, approved, and placed into effect on an interim basis. 
The new formula rates and revisions to existing formula rates combine 
the facilities use charge for Electrical District No. 5 to Palo Verde 
Hub Project (ED5-PVH) and the transmission service rates of Central 
Arizona Project (CAP), the southern portion of Pacific Northwest-
Pacific Southwest Intertie Project (Intertie), and PDP.

DATES: The provisional formula rates under Rate Schedules DSW-FT1, DSW-
NFT1, DSW-NTS1, PD-F8, and PD-FCT8 are effective on the first day of 
the first full billing period beginning on or after January 1, 2024, 
and will remain in effect through September 30, 2028, pending 
confirmation and approval by the Federal Energy Regulatory Commission 
(FERC) on a final basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Jack D. Murray, Regional Manager, 
Desert Southwest Region, Western Area Power Administration, P.O. Box 
6457, Phoenix, AZ 85005-6457, or email: <a href="/cdn-cgi/l/email-protection#294d5a5e595e5b445b42695e485948074e465f"><span class="__cf_email__" data-cfemail="573324202720253a253c172036273679303821">[email protected]</span></a>, or Tina 
Ramsey, Rates Manager, Desert Southwest Region, Western Area Power 
Administration, (602) 605-2565 or email: <a href="/cdn-cgi/l/email-protection#6c081f1b1c1b1e011e072c1b0d1c0d420b031a"><span class="__cf_email__" data-cfemail="d8bcabafa8afaab5aab398afb9a8b9f6bfb7ae">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The following Rate Schedules have been 
approved and confirmed by FERC on a

[[Page 85612]]

final basis, or approved by WAPA's Administrator on an interim basis 
and pending final approval and confirmation by FERC, through the dates 
indicated below:
---------------------------------------------------------------------------

    \1\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF20-10-000.
    \2\ 88 FR 59904 (Aug. 30, 2023) (extending rate schedules and 
placing them into effect on an interim basis); FERC filing in Docket 
No. EF23-9-000.
    \3\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF21-6-000.

----------------------------------------------------------------------------------------------------------------
                                                                                            Dates
               Rate schedules                       Rate order Nos.        -------------------------------------
                                                                                 Approval          Expiration
----------------------------------------------------------------------------------------------------------------
CAP[dash]FT3 \1\...........................  WAPA[dash]193................         12/10/2020         12/31/2025
INT[dash]FT5 \2\...........................  WAPA[dash]210................          10/1/2023          9/30/2024
PD[dash]FT7 \2\............................  WAPA[dash]210................          10/1/2023          9/30/2024
CAP[dash]NFT3 \1\..........................  WAPA[dash]193................         12/10/2020         12/31/2025
INT[dash]NFT4 \2\..........................  WAPA[dash]210................          10/1/2023          9/30/2024
PD[dash]NFT7 \2\...........................  WAPA[dash]210................          10/1/2023          9/30/2024
CAP[dash]NITS3 \1\.........................  WAPA[dash]193................         12/10/2020         12/31/2025
INT[dash]NTS4 \3\..........................  WAPA[dash]200................         10/25/2022          9/30/2026
PD[dash]NTS4 \3\...........................  WAPA[dash]200................         10/25/2022          9/30/2026
PD[dash]F7 \2\.............................  WAPA[dash]210................          10/1/2023          9/30/2024
PD[dash]FCT7 \2\...........................  WAPA[dash]210................          10/1/2023          9/30/2024
----------------------------------------------------------------------------------------------------------------

    Rate Schedules CAP-FT3, INT-FT5, and PD-FT7 apply to long-term and 
short-term firm P2P transmission service. Rate Schedules CAP-NFT3, INT-
NFT4, and PD-NFT7 apply to nonfirm P2P transmission service. Rate 
Schedules CAP-NITS3, INT-NTS4, and PD-NTS4 apply to Network 
transmission service. Rate Schedules PD-F7 and PD-FCT7 apply to PDP FES 
and transmission service of SLCA/IP power, respectively. Existing rate 
schedules do not apply to ED5-PVH; rather, since the project began 
commercial operation in 2015, DSW has charged for the use of ED5-PVH 
facilities through a contractual arrangement with customers.\4\ The 
facilities use charge for ED5-PVH is designed to recover all costs 
incurred by WAPA in connection with the project including debt service, 
operation, maintenance, replacements, and extraordinary repairs.
---------------------------------------------------------------------------

    \4\ The ED5-PVH is a 109-mile transmission project completed 
under WAPA's Transmission Infrastructure Program (TIP). TIP was 
established to implement section 301 of the Hoover Power Plant Act 
of 1984 (Pub. L. 98-381), which was enacted pursuant to section 402 
of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-
5), and manage WAPA's $3.25 billion borrowing authority to support 
projects facilitating the delivery of renewable resources in the 
western United States.
---------------------------------------------------------------------------

    WAPA published a Federal Register notice (Proposed FRN) on June 30, 
2023 (88 FR 42355), proposing new formula rates for firm and nonfirm 
P2P and Network transmission service and revisions to the existing 
formula rates for PDP FES and firm transmission service of SLCA/IP 
power. The proposed new formula rates and revisions to existing formula 
rates would combine the facilities use charge for the ED5-PVH and the 
transmission service rates of CAP, the southern portion of Intertie, 
and PDP. The Proposed FRN also initiated a 90-day public consultation 
and comment period and set forth the dates and location of the public 
information and public comment forums.

Legal Authority

    By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 
2016, the Secretary of Energy delegated: (1) the authority to develop 
power and transmission rates to the WAPA Administrator; (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, or to 
remand or disapprove such rates, to FERC. By Delegation Order No. S1-
DEL-S3-2023, effective April 10, 2023, the Secretary of Energy also 
delegated the authority to confirm, approve, and place such rates into 
effect on an interim basis to the Under Secretary for Infrastructure. 
By Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023, 
the Under Secretary for Infrastructure further redelegated the 
authority to confirm, approve, and place such rates into effect on an 
interim basis to WAPA's Administrator. This rate action is issued under 
Redelegation Order No. S3-DEL-WAPA1-2023 and Department of Energy 
procedures for public participation in rate adjustments set forth at 10 
CFR part 903.\5\
---------------------------------------------------------------------------

    \5\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------

    Following a review of DSW's proposal, Rate Order No. WAPA-209, 
which provides the formula rates for transmission and firm electric 
service, is hereby confirmed, approved, and placed into effect on an 
interim basis. WAPA will submit Rate Order No. WAPA-209 to FERC for 
confirmation and approval on a final basis.

Department of Energy Administrator, Western Area Power Administration

In the Matter of: Western Area Power Administration, Desert Southwest 
Region, Transmission and Firm Electric Service, Formula Rates, Rate 
Order No. WAPA-209

Order Confirming, Approving, and Placing the Formula Rates for the 
Desert Southwest Region Into Effect on an Interim Basis

    The formula rates in Rate Order No. WAPA-209 are established 
following section 302 of the Department of Energy (DOE) Organization 
Act (42 U.S.C. 7152).\1\
---------------------------------------------------------------------------

    \1\ This Act 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 
(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 projects 
involved.
---------------------------------------------------------------------------

    By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 
2016, the Secretary of Energy delegated: (1) the authority to develop 
power and transmission rates to the Western Area Power Administration 
(WAPA) Administrator; (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, or to remand or disapprove such rates, to the 
Federal Energy Regulatory Commission (FERC). By Delegation Order No. 
S1-DEL-S3-

[[Page 85613]]

2023, effective April 10, 2023, the Secretary of Energy also delegated 
the authority to confirm, approve, and place such rates into effect on 
an interim basis to the Under Secretary for Infrastructure. By 
Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023, the 
Under Secretary for Infrastructure further redelegated the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to WAPA's Administrator. This rate action is issued under Redelegation 
Order No. S3-DEL-WAPA1-2023 and DOE procedures for public participation 
in rate adjustments set forth at 10 CFR part 903.\2\
---------------------------------------------------------------------------

    \2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------

Acronyms, Terms, and Definitions

    As used in this Rate Order, the following acronyms, terms, and 
definitions apply:
    ATRR: Annual Transmission Revenue Requirement.
    Capacity: The electric capability of a generator, transformer, 
transmission circuit, or other equipment. It is expressed in kilowatts 
(kW) or megawatts (MW).
    Capacity Rate: The rate which sets forth the charges for capacity. 
It is expressed in dollars per kilowatt-month and applied to each 
kilowatt of the customer's monthly contractual energy reservation.
    DOE: Department of Energy.
    Energy: Measured in terms of the work it can do over time. Electric 
energy is expressed in kilowatt-hours or megawatt-hours.
    Energy Rate: The rate which sets forth the charges for energy. It 
is expressed in mills per kilowatt-hour and applied to each kilowatt-
hour delivered to each customer.
    FES: Firm electric service.
    FRN: Federal Register notice--a document published in the Federal 
Register for WAPA to provide information of public interest.
    kW: Kilowatt--the electrical unit of capacity that equals 1,000 
watts.
    kWh: Kilowatt-hour--the electrical unit of energy that equals 1,000 
watts in 1 hour.
    kW-month: Kilowatt-month--the electrical unit of the monthly amount 
of capacity.
    kW-year: Kilowatt-year--the electrical unit of the yearly amount of 
capacity.
    mills/kWh: Mills per kilowatt-hour--the unit of charge for energy 
(equal to one tenth of a cent or one thousandth of a dollar).
    NEPA: National Environmental Policy Act of 1969, as amended.
    Network: Network integration.
    OATT: Open Access Transmission Tariff, including all schedules or 
attachments thereto, as amended from time to time and approved by FERC.
    Order RA 6120.2: DOE Order outlining Power Marketing Administration 
financial reporting and rate-making procedures.
    P2P: Point-to-point.
    Power: Capacity and energy.
    Provisional Formula Rates: Formula rates that are confirmed, 
approved, and placed into effect on an interim basis by the Secretary 
or his/her designee.

Effective Date

    The provisional formula rates under Rate Schedules DSW-FT1, DSW-
NFT1, DSW-NTS1, PD-F8, and PD-FCT8 will take effect the first day of 
the full billing period beginning on or after January 1, 2024, and will 
remain in effect through September 30, 2028, pending approval by FERC 
on a final basis or until superseded.

Public Notice and Comment

    WAPA's Desert Southwest Region (DSW) followed the Procedures for 
Public Participation in Power and Transmission Rate Adjustments and 
Extensions, 10 CFR part 903, in developing these formula rates. DSW 
took the following steps to involve interested parties in the rate 
process:
    1. On June 30, 2023, a Federal Register notice (88 FR 42355) 
(Proposed FRN) announced the proposed formula rates and initiated a 90-
day public consultation and comment period.
    2. On June 30, 2023, DSW notified customers and interested parties 
of the proposed formula rates and provided a copy of the Proposed FRN 
by email.
    3. On August 7, 2023, DSW held a public information forum via video 
conference and in person at DSW's Phoenix, Arizona office. DSW 
representatives explained the proposed formula rates and answered 
questions.
    4. On August 29, 2023, DSW held a public comment forum via video 
conference and in person at DSW's Phoenix, Arizona office to provide an 
opportunity for customers and other interested parties to comment for 
the record.
    5. DSW established a public website to post information about the 
rate process. The website is located at www.wapa.gov/about-wapa/regions/dsw/rates/otr.
    6. During the 90-day consultation and comment period, which ended 
on September 28, 2023, DSW received comments from eleven entities. 
DSW's responses to questions received prior to the public comment forum 
were posted to the public website.
    7. The comments received during or after the public comment forum 
are addressed in the ``Comments'' section. All comments have been 
considered in the preparation of this Rate Order.
    Oral comments were received from the following organizations:

Electrical District No. 4 of Pinal County
Electrical District No. 7 of Maricopa County
Hohokam Irrigation and Drainage District
Maricopa Water District
Salt River Pima-Maricopa Indian Community
Town of Gilbert, Arizona
Town of Wickenburg, Arizona
Wellton-Mohawk Irrigation and Drainage District

    Written comments were received from the following organizations:

Calpine Energy Services
Central Arizona Water Conservation District
Griffith Energy

Discussion

    The rates for transmission service on Central Arizona Project 
(CAP), Pacific Northwest-Pacific Southwest Intertie Project (Intertie), 
and Parker-Davis Project (PDP), and the facilities use charge for 
Electrical District No. 5 to Palo Verde Hub Project (ED5-PVH), have 
substantially converged over the last several years. Combining the 
rates and facilities use charge for these projects into ``One 
Transmission Rate'' (OTR) is expected to provide benefits to DSW's 
customers by allowing more efficient scheduling and use of each 
project's transmission facilities, eliminating multiple charges (rate 
pancaking) among the transmission systems, and providing rate and 
financial stability by having a larger revenue requirement with a more 
diverse customer base.
    Although the transmission service rates and facilities use charge 
are combined under the OTR, the projects remain separate for financial 
accounting and repayment purposes. The formula rates under the OTR 
provide sufficient revenue to recover annual operation, maintenance, 
and replacement costs, interest expense, and capital repayment 
requirements while ensuring repayment of the projects within the cost 
recovery criteria set forth in DOE Order RA 6120.2.
    To implement the OTR, DSW's new rate schedules contain formula 
rates for firm and nonfirm P2P and Network transmission service. These 
new schedules supersede the existing rate schedules for CAP, Intertie, 
and PDP transmission service and replace the

[[Page 85614]]

contractual charge for the use of ED5-PVH facilities. DSW also made 
changes to the existing formula rates for PDP FES and firm transmission 
service of Salt Lake City Area/Integrated Projects (SLCA/IP) power so 
they align with the new rate schedule for firm P2P transmission 
service.
    DSW's formula rates for firm and nonfirm P2P and Network 
transmission service under the OTR, along with PDP FES and firm 
transmission service of SLCA/IP power, will go into effect the first 
day of the first full billing period beginning on or after January 1, 
2024, and remain in effect through September 30, 2028, or until DSW 
changes the formula rates through another public rate process pursuant 
to 10 CFR part 903, whichever occurs first.

Firm Point-to-Point Transmission Service

    DSW's new rate schedule, DSW-FT1, applies to long-term and short-
term firm P2P transmission service on CAP, Intertie, PDP, and ED5-PVH. 
This rate schedule contains formulas to calculate the rates for firm 
P2P transmission service. For long-term transmission service (one year 
or longer), the annual rate for each kW-year equals the combined ATRR 
of each project, which is the amount of revenue that each project needs 
to cover the costs associated with its transmission system, divided by 
the combined anticipated long-term capacity reservations for each 
project, rounded to the nearest 12-cent increment. For short-term 
transmission service (up to one year), the maximum rate for each kW is 
equal to the annual long-term rate divided by the applicable period of 
time (i.e., monthly, weekly, daily and hourly) and rounded to up to 
five decimal places.
    These long-term and short-term rates will be calculated annually 
using updated financial and capacity reservation information, as 
applicable. This new rate schedule supersedes Rate Schedules CAP-FT3, 
INT-FT5, and PD-FT7.

Nonfirm Point-to-Point Transmission Service

    DSW's new rate schedule, DSW-NFT1, applies to nonfirm P2P 
transmission service on CAP, Intertie, PDP, and ED5-PVH. This rate 
schedule contains a formula to calculate the rate for nonfirm P2P 
transmission service. The nonfirm rate is calculated by dividing the 
annual long-term rate for firm P2P transmission service by 8,760 hours 
and rounding to five decimal places. The nonfirm rate will be 
calculated annually using the long-term rate for firm P2P transmission 
service. This new rate schedule supersedes Rate Schedules CAP-NFT3, 
INT-NFT4, and PD-NFT7.

Network Transmission Service

    DSW's new rate schedule, DSW-NTS1, applies to Network transmission 
service on CAP, Intertie, PDP, and ED5-PVH. This rate schedule contains 
a formula to calculate the monthly charge for Network transmission 
service. The monthly charge is determined by multiplying the customer's 
load ratio share, the ratio of the customer's Network load to the 
transmission provider's total load, times one twelfth (\1/12\) of the 
combined ATRR of each project. The combined ATRR will be calculated 
annually using updated financial information. This new rate schedule 
supersedes Rate Schedules CAP-NITS3, INT-NTS4, and PD-NTS4.

PDP Firm Electric Service

    DSW revised Rate Schedule PD-F7 so the transmission charge aligns 
with the new rate schedule, DSW-FT1, for long-term and short-term firm 
P2P transmission service on CAP, Intertie, PDP, and ED5-PVH. No changes 
occurred to the energy or capacity charges. DSW also made other minor 
changes to Rate Schedule PD-F7. Specifically, the rate schedule was 
modified to indicate that recently approved Rate Schedule DSW-UU1 \3\ 
applies to unauthorized transmission overruns. In addition, the section 
on transformer losses was deleted because it only pertained to 
deliveries made with meters located at distribution voltage, a 
situation that no longer exists for DSW. The revised rate schedule, PD-
F8, supersedes PD-F7.
---------------------------------------------------------------------------

    \3\ Order Confirming and Approving Rate Schedules on a Final 
Basis, FERC Docket No. EF21-6-000.
---------------------------------------------------------------------------

PDP Transmission Service of SLCA/IP Power

    DSW revised Rate Schedule PD-FCT7 to align with the new rate 
schedule, DSW-FT1, for long-term and short-term firm P2P transmission 
service on CAP, Intertie, PDP, and ED5-PVH. DSW also made minor changes 
to sections of Rate Schedule PD-FCT7 addressing adjustment for losses 
and overrun of capacity. Specifically, the new rate schedule reflects 
that recently approved Rate Schedules DSW-TL1 and DSW-UU1 \4\ apply to 
transmission losses service and unreserved use, respectively. The 
revised rate schedule, PD-FCT8, supersedes PD-FCT7.
---------------------------------------------------------------------------

    \4\ Ibid.
---------------------------------------------------------------------------

Table of Rate Schedules

    The table below provides a crosswalk from the existing rate 
schedules to the new rate schedules.

                             Rate Schedules
------------------------------------------------------------------------
                 Existing                                New
------------------------------------------------------------------------
CAP-FT3, INT-FT5 & PD-FT7.................  DSW-FT1.
CAP-NFT3, INT-NFT4 & PD-NFT7..............  DSW-NFT1.
CAP-NITS3, INT-NTS4 & PD-NTS4.............  DSW-NTS1.
PD-F7.....................................  PD-F8.
PD-FCT7...................................  PD-FCT8.
------------------------------------------------------------------------

Prepayment of Service

    Long-term firm P2P and Network transmission service under Rate 
Schedules DSW-FT1 and DSW-NTS1 will be paid one month in advance and 
credited in a subsequent month. The Intertie and PDP long-term firm P2P 
transmission customers currently prepay for service and will experience 
no change. As described below, CAP long-term firm P2P and PDP Network 
transmission customers and ED5-PVH facilities use customers will start 
prepaying for service when the rate schedules become effective.
    The monthly prepayment for long-term firm P2P transmission service 
will be based on the capacity reserved. The monthly prepayment for 
Network transmission service will be based on the most recent bill. 
Since transmission customers that currently do not prepay for service 
will have two payments each month during the first two months, one for 
service in arrears and one for prepayment, customers may choose an 
optional four-month transitional period to phase in prepayments. With a 
transitional period, the two additional payments that are necessary 
during the first two months will be evenly distributed over the first 
four months to help mitigate the potential financial burden on 
customers.

Comments

    DSW received oral and/or written comments during the public 
consultation and comment period from eleven entities. The comments 
expressed have been paraphrased and/or combined, where appropriate, 
without compromising the meaning of the comments.
    A. Comment: A commenter requested the OTR be flexible to 
accommodate the inclusion of future projects which may be funded by 
WAPA's Transmission Infrastructure Program or non-DSW transmission 
facilities.
    Response: WAPA believes the OTR can accommodate such projects if 
they are an element of CAP, Intertie, PDP, or ED5-PVH. Transmission 
facilities separate from those transmission

[[Page 85615]]

systems would require a public process to modify the formula rates for 
the OTR to accommodate them.
    B. Comment: Several commenters expressed support for the OTR.
    Response: WAPA appreciates the comments and support for 
establishing a single rate for DSW transmission systems.
    C. Comment: A commenter inquired about the availability of 
additional markets to customers under the proposed OTR.
    Response: The availability of additional markets will vary by 
customer and existing transmission system usage. However, subject to 
the OATT, customers would have the ability to redirect service on the 
entire DSW transmission system regardless of project and without being 
subject to additional charges and to reserve new transmission service 
on the entire DSW transmission system in one transaction.
    D. Comment: A commenter believes the proposed OTR employs an 
arbitrary rate setting methodology adversely impacting Intertie-only 
customers by unfairly subsidizing other DSW transmission projects 
without providing any additional benefits.
    Response: Since April 2022, DSW has held several customer workgroup 
meetings to review and discuss the OTR rate methodology to ensure it is 
sound and provides the best value for the customers. As part of this 
action, the Administrator determined the new rate schedules are the 
lowest possible consistent with sound business principles. Customers 
across DSW will receive multiple benefits from the OTR both in the 
short and long term. Customers taking transmission through the OTR will 
receive more efficient scheduling and use of each project's 
transmission facilities. The OTR will also eliminate multiple charges 
(rate pancaking) among the transmission systems and provide rate and 
financial stability by having a larger revenue requirement and more 
diverse customer base.
    E. Comment: A commenter requested that Intertie-only customers be 
grandfathered under the existing Intertie rate structure to prevent 
subsidization of other DSW transmission projects.
    Response: To realize the benefits of the OTR, including the 
elimination of rate pancaking and enhanced rate and financial 
stability, the transmission service rates and facilities use charge for 
all projects must be combined under one methodology. Preserving the 
rate structure for any particular project, or grandfathering particular 
customers, would undermine and be contrary to the purpose of the OTR. 
Even though the transmission service rates and facilities use charge 
would be combined under the OTR, the projects will remain separate for 
financial accounting and repayment purposes.

Certification of Rates

    I have certified the Provisional Formula Rates under Rate Schedules 
DSW-FT1, DSW-NFT1, DSW-NTS1, PD-F8, and PD-FCT8 for DSW are the lowest 
possible rates, consistent with sound business principles. The 
Provisional Formula Rates were developed following administrative 
policies and applicable laws.

Availability of Information

    Information used by DSW to develop the Provisional Formula Rates is 
available for inspection and copying at the Desert Southwest Regional 
Office, 615 South 43rd Avenue, Phoenix, Arizona. These documents are 
also available on WAPA's website at www.wapa.gov/about-wapa/regions/dsw/rates/otr.

Ratemaking Procedure Requirements

Environmental Compliance

    WAPA has determined this action fits within the following 
categorical exclusion listed in appendix B to subpart D of 10 CFR part 
1021: B4.3 (Electric power marketing rate changes). Categorically 
excluded projects and activities do not require preparation of either 
an environmental impact statement or an environmental assessment.\5\ A 
copy of the categorical exclusion determination is available on WAPA's 
website at www.wapa.gov/about-wapa/regions/dsw/environment.
---------------------------------------------------------------------------

    \5\ The determination was done in compliance with NEPA (42 
U.S.C. 4321-4347); the Council on Environmental Quality Regulations 
for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA 
Implementing Procedures and Guidelines (10 CFR part 1021).
---------------------------------------------------------------------------

Determination Under Executive Order 12866

    WAPA has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

Submission to the Federal Energy Regulatory Commission

    The Provisional Formula Rates herein confirmed, approved, and 
placed into effect on an interim basis, together with supporting 
documents, will be submitted to FERC for confirmation and final 
approval.

Order

    In view of the above and under the authority delegated to me, I 
hereby confirm, approve, and place into effect, on an interim basis, 
Rate Order No. WAPA-209. The formula rates will remain in effect on an 
interim basis until: (1) FERC confirms and approves them on a final 
basis; (2) subsequent formula rates are confirmed and approved; or (3) 
such formula rates are superseded.

Signing Authority

    This document of the Department of Energy was signed on December 1, 
2023, by Tracey A. LeBeau, Administrator, Western Area Power 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document, with the original signature and date, is 
maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on December 5, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

Rate Schedule DSW-FT1 Schedule 7 to OATT (Supersedes Rate Schedules 
CAP-FT3, INT-FT5 and PD-FT7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Central Arizona Project, Electrical District No. 5 to Palo Verde Hub 
Project, Pacific Northwest-Pacific Southwest Intertie Project, Parker-
Davis Project

Long-Term and Short-Term Firm, Point-to-Point Transmission Service

(Approved Under Rate Order No. WAPA-209)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2024, and extending through September 30, 2028, or 
until superseded by another rate schedule, whichever occurs earlier.

Available

    In the area served by the Central Arizona Project (CAP), Electrical 
District No. 5 to Palo Verde Hub Project (ED5-PVH), Pacific Northwest-
Pacific

[[Page 85616]]

Southwest Intertie Project (Intertie), and Parker-Davis Project (PDP).

Applicable

    This rate schedule applies to long-term and short-term firm point-
to-point transmission service where capacity and energy are supplied at 
points of receipt on the CAP, ED5-PVH, Intertie, and PDP, and 
transmitted and delivered, less losses, to points of delivery on the 
CAP, ED5-PVH, Intertie, and PDP.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by service agreement 
or non-OATT agreement.

Long-Term Rate

    For transmission service one year or longer, the annual rate for 
each kilowatt per year (kW-year) equals the combined annual 
transmission revenue requirements for CAP, ED5-PVH, Intertie, and PDP 
divided by the anticipated long-term capacity reservations for CAP, 
ED5-PVH, Intertie, and PDP, rounded to the nearest 12-cent increment. 
The annual long-term rate for transmission service is payable monthly; 
the rate for each kilowatt per month (kW-month) equals the annual rate 
per kW-year divided by 12.
    The long-term rate will be calculated annually based on the above 
formula with updated financial and capacity reservation information, as 
applicable. Discounts may be available in accordance with WAPA's OATT.

Short-Term Rates

    For transmission service up to one year, the maximum rate for each 
kilowatt is the following:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Monthly........................  Annual long-term rate divided by 12
                                  months and rounded two decimal places.
Weekly.........................  Annual long-term rate divided by 52
                                  weeks and rounded two decimal places.
Daily..........................  Annual long-term rate divided by 365
                                  days and rounded two decimal places.
Hourly.........................  Annual long-term rate divided by 8,760
                                  hours and rounded five decimal places.
------------------------------------------------------------------------

    Discounts may be available in accordance with WAPA's OATT.

Billing

    Billing for firm point-to-point transmission service will occur 
monthly by applying the applicable rate under this schedule to the 
capacity reserved. There will be a single charge (no rate pancaking) 
for long-term or short-term firm transmission service over a continuous 
path across multiple projects. Payment for long-term point-to-point 
transmission service will be required one month in advance of said 
service.

Adjustment for Reactive Power

    There shall be no entitlement to the transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually 
agreed upon by the customer and WAPA or their authorized 
representatives.

Adjustment for Losses

    Capacity and energy losses incurred in connection with the 
transmission and delivery of capacity and energy shall be assessed in 
accordance with the rate schedule for transmission losses service in 
effect.

Unauthorized Overruns

    WAPA will assess charges for unreserved use of transmission service 
in accordance with the rate schedule for unreserved use penalties in 
effect.

Rate Schedule DSW-NFT1, Schedule 8 to OATT (Supersedes Rate Schedules 
CAP-NFT3, INT-NFT4 and PD-NFT7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Central Arizona Project, Electrical District No. 5 to Palo Verde Hub 
Project, Pacific Northwest-Pacific Southwest Intertie Project, Parker-
Davis Project

Nonfirm Transmission Service

(Approved Under Rate Order No. WAPA-209)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2024, and extending through September 30, 2028, or 
until superseded by another rate schedule, whichever occurs earlier.

Available

    In the area served by the Central Arizona Project (CAP), Electrical 
District No. 5 to Palo Verde Hub Project (ED5-PVH), Pacific Northwest-
Pacific Southwest Intertie Project (Intertie), and Parker-Davis Project 
(PDP).

Applicable

    This rate schedule applies to nonfirm transmission service where 
capacity and energy are supplied at points of receipt on the CAP, ED5-
PVH, Intertie, and PDP, and transmitted and delivered, less losses, to 
points of delivery on the CAP, ED5-PVH, Intertie, and PDP.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by the capacity 
reservation.

Rate

    For nonfirm transmission service, the maximum hourly rate for each 
kilowatt equals the annual long-term rate for firm point-to-point 
transmission service divided by 8,760 hours and rounded to five decimal 
places. The hourly rate will be calculated annually using updated 
information, as applicable. Discounts may be available in accordance 
with WAPA's OATT.

Billing

    Billing for nonfirm transmission service will occur monthly by 
applying the rate under this rate schedule to the amount of capacity 
reserved. There will be a single charge (no rate pancaking) for nonfirm 
transmission service over a continuous path across multiple projects.

Adjustment for Reactive Power

    There shall be no entitlement to the transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually 
agreed upon by the customer and WAPA or their authorized 
representatives.

Adjustment for Losses

    Capacity and energy losses incurred in connection with the 
transmission and delivery of capacity and energy shall be assessed in 
accordance with the rate schedule for transmission losses service in 
effect.

[[Page 85617]]

Rate Schedule DSW-NTS1

Attachment H to OATT (Supersedes Rate Schedules CAP-NITS3, INT-NTS4 and 
PD-NTS4)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Central Arizona Project, Electrical District No. 5 to Palo Verde Hub 
Project, Pacific Northwest-Pacific Southwest Intertie Project, Parker-
Davis Project

Network Integration Transmission Service

(Approved Under Rate Order No. WAPA-209)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2024, and extending through September 30, 2028, or 
until superseded by another rate schedule, whichever occurs earlier.

Available

    In the area served by the Central Arizona Project (CAP), Electrical 
District No. 5 to Palo Verde Hub Project (ED5-PVH), Pacific Northwest-
Pacific Southwest Intertie Project (Intertie), and Parker-Davis Project 
(PDP).

Applicable

    This rate schedule applies to network integration (Network) 
transmission service where capacity and energy are supplied from 
designated network resources on the CAP, ED5-PVH, Intertie, and PDP, 
and transmitted and delivered to designated network loads on the CAP, 
ED5-PVH, Intertie, and PDP.

Charge

    The monthly charge for Network transmission service equals the 
customer's load ratio share, the ratio of the customer's network load 
to the transmission provider's total load, times one twelfth (\1/12\) 
of the combined annual transmission revenue requirements for CAP, ED5-
PVH, Intertie, and PDP.
    The combined annual transmission revenue requirement for CAP, ED5-
PVH, Intertie, and PDP will be calculated annually with updated 
financial information.

Billing

    Billing for network transmission service will occur monthly. There 
will be a single charge (no rate pancaking) for transmission service 
over multiple projects. Payment for network transmission service will 
be required one month in advance of said service.

Adjustment for Losses

    Capacity and energy losses incurred in connection with the 
transmission and delivery of capacity and energy shall be assessed in 
accordance with the rate schedule for transmission losses service in 
effect.

Rate Schedule PD-F8 (Supersedes Rate Schedule PD-F7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Parker-Davis Project

Firm Electric Service

(Approved Under Rate Order No. WAPA-209)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2024, and extending through September 30, 2028, or 
until superseded by another rate schedule, whichever occurs earlier.

Available

    In the area served by the Parker-Davis Project (PDP).

Applicable

    The rate schedule applies to firm electric service supplied through 
one meter at one point of delivery, unless otherwise provided by 
contract.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by contract.

Charges

Energy
    Each firm electric service customer shall be billed a monthly 
energy charge. This charge equals the customer's monthly contractual 
energy reservation multiplied by the Energy Rate and rounded to the 
penny. The Energy Rate equals 50 percent of the annual generation 
revenue requirement divided by the estimated total generation delivery 
commitments, rounded to two decimal places.
Capacity
    Each firm electric service customer shall be billed a monthly 
capacity charge. This charge equals the customer's monthly contractual 
capacity reservation multiplied by the Capacity Rate and rounded to the 
penny. The Capacity Rate equals 50 percent of the annual generation 
revenue requirement divided by the estimated total generation delivery 
commitments, rounded to two decimal places.
Transmission
    Each firm electric service customer shall be billed monthly a 
transmission charge. This charge equals the customer's contractual 
reservation multiplied by the long-term rate calculated in accordance 
with the rate schedule for firm point-to-point transmission service in 
effect, rounded to the penny.
Lower Basin Development Fund Contribution
    The contribution charge equals 4.5 mills/kWh for each kWh measured 
or scheduled to an Arizona customer and 2.5 mills/kWh for each kWh 
measured or scheduled to a California or Nevada customer.

Excess Energy

    When excess energy is available, offered, and delivered to firm 
electric service customers, such excess energy shall be charged using 
the Energy Rate.

Unauthorized Overruns/Unreserved Use

    Unauthorized overruns of energy and/or capacity shall be charged 
ten times the applicable Energy and/or Capacity Rate. Unreserved use of 
transmission service shall be charged in accordance with the rate 
schedule for unreserved use penalties in effect.

Power Factor

    The firm electric service customer normally will be required to 
maintain a power factor at all points of measurement between 95-percent 
lagging and 95-percent leading.

Rate Schedule PD-FCT8 (Supersedes Rate Schedule PD-FCT7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Parker-Davis Project

Firm Transmission Service of Salt Lake City Area/Integrated Project 
Power

(Approved Under Rate Order No. WAPA-209)

Effective

    The first day of the first full billing period beginning on or 
after January 1, 2024, and extending through September 30, 2028, or 
until superseded by another rate schedule, whichever occurs earlier.

Available

    In the area served by the Central Arizona Project (CAP), Electrical 
District No. 5 to Palo Verde Hub Project (ED5-PVH), Pacific Northwest-
Pacific Southwest Intertie Project (Intertie), and Parker-Davis Project 
(PDP).

[[Page 85618]]

Applicable

    This rate schedule applies to firm transmission service where Salt 
Lake City Area/Integrated Projects (SLCA/IP) capacity and energy are 
supplied at points of receipt on the PDP, and transmitted and 
delivered, less losses, to points of delivery on the PDP.

Character and Conditions of Service

    Alternating current at 60 hertz, three-phase, delivered and metered 
at the voltages and points of delivery established by service agreement 
or non-OATT agreement.

Rate

    For firm transmission service of SLCA/IP power, the annual rate for 
each kilowatt per year (kW-year) equals the long-term rate for point-
to-point transmission service on CAP, ED5-PVH, Intertie, and PDP. The 
annual long-term rate for transmission service is payable monthly; the 
rate for each kilowatt per month (kW-month) equals the annual rate per 
kW-year divided by 12.

Billing

    Billing for firm transmission service of SLCA/IP power will occur 
monthly by applying the rate under this rate schedule to the amount of 
capacity reserved. There will be a single charge (no rate pancaking) 
for firm transmission service over a continuous path across multiple 
projects. Payment for transmission service will be required one month 
in advance of said service.

Adjustments for Reactive Power

    There shall be no entitlement to the transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually 
agreed upon by the customer and WAPA or their authorized 
representatives.

Adjustments for Losses

    Capacity and energy losses incurred in connection with the 
transmission and delivery of capacity and energy shall be assessed in 
accordance with the rate schedule for transmission losses service in 
effect.

Unreserved Use

    WAPA will assess charges for unreserved use of transmission service 
in accordance with the rate schedule for unreserved use penalties in 
effect.

[FR Doc. 2023-26963 Filed 12-7-23; 8:45 am]
BILLING CODE 6450-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>