[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Notices]
[Pages 83008-83009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23768]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Provo River Project--Rate Order No. WAPA-221

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed formula rate for power service.

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SUMMARY: The Colorado River Storage Project Management Center (CRSP MC) 
of the Western Area Power Administration (WAPA) proposes a new formula 
rate for the Provo River Project (PRP) power service. The existing rate 
for this service expires on March 31, 2025. This rate action proposes 
no change to the existing formula rate under Rate Schedule PR-2 other 
than extending the effective date for a 5-year period through March 31, 
2030.

DATES: A consultation and comment period will begin October 15, 2024 
and end November 14, 2024. CRSP MC will accept written comments any 
time during the consultation and comment period.

ADDRESSES: Written comments and requests to be informed of Federal 
Energy Regulatory Commission (FERC) actions concerning the proposed 
formula rate submitted by WAPA to FERC for approval should be sent to: 
Rodney Bailey, CRSP Manager, CRSP MC, Western Area Power 
Administration, 1800 South Rio Grande Drive, Montrose, CO 81401, or 
email: <a href="/cdn-cgi/l/email-protection#a1e2f3f2f1ece28cd3c0d5c4c0c5cbe1d6c0d1c08fc6ced7"><span class="__cf_email__" data-cfemail="7c3f2e2f2c313f510e1d08191d18163c0b1d0c1d521b130a">[email protected]</span></a>. The CRSP MC will post information about 
the proposed formula rate and written comments received to its website 
at: www.wapa.gov/about-wapa/regions/crsp/rates/.

FOR FURTHER INFORMATION CONTACT: Tamala Gheller, Rates Manager, CRSP 
MC, Western Area Power Administration, (970) 240-6545 or email: 
<a href="/cdn-cgi/l/email-protection#91f6f9f4fdfdf4e3d1e6f0e1f0bff6fee7"><span class="__cf_email__" data-cfemail="6e09060b02020b1c2e190f1e0f40090118">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: On June 10, 2020, FERC approved and 
confirmed Rate Schedule PR-2 under Rate Order No. WAPA-189 on a final 
basis through March 31, 2025.\1\ This schedule applies to PRP power 
service.
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    \1\ Order Confirming and Approving Rate Schedule on a Final 
Basis, FERC Docket No. EF20-1-000.
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    The existing formula rate provides sufficient revenue to recover 
annual costs within the cost recovery criteria set forth in Department 
of Energy (DOE) Order RA 6120.2. The proposed rate continues the 
formula-based methodology that includes an annual update to the 
financial data in the rate formula. CRSP MC intends the proposed

[[Page 83009]]

formula-based rate to go into effect April 1, 2025. The proposed 
formula rate would remain in effect until March 31, 2030, or until WAPA 
changes the formula rate through another public rate process pursuant 
to 10 CFR part 903, whichever occurs first.
    The Deer Creek Dam, Reservoir, and Power Plant are components of 
the Deer Creek Division of the PRP, located on the Provo River in Utah. 
The marketing plan for the PRP was published in the Federal Register 
(88 FR 16433) on March 17, 2023. New contracts are effective October 1, 
2024, through September 30, 2054. This marketing plan sets the 
parameters for WAPA to market the output of the PRP. Final allocations 
of PRP power, as published in the Federal Register (89 FR 23994) on 
April 5, 2024, were provided to Heber Light and Power and seven members 
of Utah Associated Municipal Power Systems and Utah Municipal Power 
Agency (Customers) in the Provo River drainage area.
    The Customers purchase all power generation from the project and 
pay the annual revenue requirement in monthly installment payments 
based on the estimates of operation, maintenance, and capitalized 
replacement expenses for the Deer Creek Power Plant. The payments are 
not dependent upon the power made available for sale or the rate of 
generation each year. CRSP MC reconciles the estimate to actual 
expenses at the end of the fiscal year and includes the difference in 
the next year's annual revenue requirement.

Legal Authority

    Existing DOE procedures for public participation in power and 
transmission rate adjustments (10 CFR part 903) were published on 
September 18, 1985, and February 21, 2019.\2\ The proposed action 
constitutes a minor rate adjustment, as defined by 10 CFR 903.2(e). In 
accordance with 10 CFR 903.15(a) and 903.16(a), CRSP MC has determined 
it is not necessary to hold public information and public comment 
forums for this rate action but is initiating a 30-day consultation and 
comment period to give the public an opportunity to comment on the 
proposed formula rate. CRSP MC will review and consider all timely 
public comments at the conclusion of the consultation and comment 
period and make amendments or adjustments to the proposal as 
appropriate. Proposed rates will then be approved on an interim basis.
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    \2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
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    WAPA is establishing the formula rate for the PRP in accordance 
with section 302 of the DOE Organization Act (42 U.S.C. 7152).\3\
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    \3\ 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 project 
involved.
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    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-S3-2024, effective August 30, 2024, 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.

Availability of Information

    All brochures, studies, comments, letters, memorandums, or other 
documents that CRSP MC initiates or uses to develop the proposed 
formula rate are available for inspection and copying at the CRSP MC, 
located at 1800 South Rio Grande Avenue, Montrose, CO 81401. Many of 
these documents and supporting information are also available on WAPA's 
website at: www.wapa.gov/about-wapa/regions/crsp/rates/.

Ratemaking Procedure Requirements

Environmental Compliance

    WAPA is in the process of determining whether an environmental 
assessment or an environmental impact statement should be prepared or 
if this action can be categorically excluded from those 
requirements.\4\
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    \4\ In compliance with the National Environmental Policy Act 
(NEPA) of 1969, as amended, 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).
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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.

Signing Authority

    This document of the Department of Energy was signed on October 8, 
2024, 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 October 9, 2024.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-23768 Filed 10-11-24; 8:45 am]
BILLING CODE 6450-01-P


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