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[Federal Register Volume 89, Number 249 (Monday, December 30, 2024)]
[Notices]
[Pages 106473-106475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30863]

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DEPARTMENT OF ENERGY

Western Area Power Administration

Colorado River Storage Project--Rate Order No. WAPA-220

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed transmission and ancillary services formula 
rates.

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SUMMARY: The Colorado River Storage Project (CRSP) Management Center 
(MC) of the Western Area Power Administration (WAPA) proposes new 
formula rates for CRSP transmission and ancillary services for CRSP 
MC's costs to be recovered under the Southwest Power Pool's (SPP) Open 
Access Transmission Tariff (Tariff) should CRSP MC decide to become a 
member of SPP. The proposed formula rates will become effective on the 
latter of CRSP MC's membership date or the go-live date of the 
expansion of the SPP Regional Transmission Organization (RTO) into the 
Western Interconnection (scheduled for April 1, 2026, as of the date of 
this notice) and will remain in effect for 5 years from the effective 
date, which with an effective date of April 1, 2026, will be March 31, 
2031, or until superseded.

DATES: A consultation and comment period will begin December 30, 2024 
and end March 31, 2025. CRSP MC will present a detailed explanation of 
the proposed formula rates and other modifications at a public 
information forum that will be held on February 19, 2025, at 2 p.m. MST 
to no later than 3 p.m. MST. CRSP MC will also host a public comment 
forum on February 19, 2025, at 3:15 p.m. MST to no later than 4 p.m. 
MST. The public information forum and the public comment forum will be 
conducted virtually. Instructions for participating in the forums will 
be posted on CRSP MC's Rates website at least 14 days prior to the 
public information and comment forums at: www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/.
    CRSP MC will accept 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 rates submitted by WAPA to FERC for approval should be sent to: 
Rodney G. Bailey, CRSP Manager, Colorado River Storage Project 
Management Center, Western Area Power Administration, 1800 South Rio 
Grande Avenue, Montrose, CO 81401, or email [email protected]. 
CRSP MC will post information about the proposed formula rates and 
written comments received to its rates website at: www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/.

FOR FURTHER INFORMATION CONTACT: Tamala D. Gheller, Rates Manager, 
Colorado River Storage Project Management Center, Western Area Power 
Administration, (970) 240-6545 or email: [email protected].

SUPPLEMENTARY INFORMATION: On April 28, 2023, WAPA published a Federal 
Register notice titled ``Recommendation for the Western Area Power 
Administration's Rocky Mountain Region and Colorado River Storage 
Project Management Center to Pursue Final Negotiations Regarding 
Membership in the Southwest Power Pool Regional Transmission 
Organization, and for the Upper Great Plains Region to Expand its 
Participation'' (88 FR 26298). On June 4, 2024, SPP submitted revisions 
to its Tariff, Bylaws, and Membership Agreement to expand the SPP RTO 
into the Western Interconnection to FERC.\1\ If SPP succeeds in 
obtaining FERC's approval of its Tariff, Bylaws, and Membership 
Agreement revisions, and upon further approval by the Administrator, 
CRSP MC plans to become a member of SPP.\2\
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    \1\ Southwest Power Pool, Inc., Submission of Revisions to 
Tariff, Bylaws, and Membership Agreement to Expand the Regional 
Transmission Organization into the Western Interconnections (Part 1 
of 2) and (Part 2 of 2), Docket Nos. ER24-2184, ER24-2185 (June 4, 
2024).
    \2\ WAPA's Rocky Mountain region also plans to become a member 
of the SPP RTO, and WAPA's Upper Great Plains region plans to expand 
its membership participation in the SPP RTO. These regions are 
proposing new formula rate designs/rate schedules under separate 
Rate Order Nos. WAPA-219 and WAPA-218, respectively.

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[[Page 106474]]

    CRSP MC's membership will include CRSP MC becoming a Transmission 
Owner member of SPP. WAPA will transfer functional control of eligible 
CRSP transmission facilities to SPP. At such time, for the eligible 
facilities, CRSP transmission and ancillary services will no longer be 
available under WAPA's Tariff, and the existing transmission and 
ancillary services rate schedules, specifically SP-NW6, SP-PTP10, SP-
NFT9, SP-UU3, L-AS1, L-AS2, L-AS3, SP-EI6, SP-SSR6, will no longer be 
applicable.
    CRSP transmission service for these eligible facilities will be 
provided under the SPP Tariff by SPP as the transmission service 
provider. Accordingly, CRSP MC will need new rate designs/rate 
schedules and rate implementation protocols in place for specific costs 
to be recovered under the SPP Tariff.
    CRSP MC will continue to be the transmission service provider for 
specific transmission facilities associated with serving a customer 
group in its Southern Division marketing area, who requested a pseudo-
tie into the Western Area Lower Colorado Balancing Authority (WALC BA). 
CRSP MC will provide firm transmission service to serve this pseudo-tie 
and will not transfer functional control of such facilities to SPP.
    As of the date of this notice, SPP's anticipated deadline for 
filing certain SPP Tariff documents for CRSP MC (including annual 
revenue requirements (ARR), formula rate templates, and formula rate 
implementation protocols proposed in this rate filing, as well as other 
pertinent documents not included in this rate filing) with FERC is 
October 2025. CRSP MC is publishing this notice of proposed formula 
rates and initiating the rate consultation and comment period at this 
time in order for CRSP MC to obtain FERC-approved formula rates prior 
to this SPP deadline.
    If CRSP MC does not become a member of SPP, further actions under 
this notice of proposed rates will be canceled, and existing formula 
rates will remain in effect. If canceled, CRSP MC will inform customers 
by letter and by posting notice of such on CRSP MC's Rates website 
(www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/) and will withdraw the formula 
rates proposed in this notice.
    CRSP MC is proposing a new formula rate to calculate the ARR for 
its CRSP transmission facilities that will be transferred to the 
functional control of SPP under the SPP Tariff. CRSP MC is also 
proposing a new formula rate to calculate the ARR for Scheduling, 
System Control, and Dispatch Service (SSCD Service) under the SPP 
Tariff. CRSP MC's revenue requirements will be added to the annual 
revenue requirements of other transmission owners in the SPP pricing 
Zone 103, also identified as the Colorado River Storage Project Zone 
(CRSPZ), for transmission service billed by SPP within the CRSPZ. CRSP 
MC's revenue requirements under these proposed rates will also impact 
other costs for transmission service within the broader SPP footprint. 
For transmission and ancillary services provided under the SPP Tariff, 
CRSP MC also proposes to provide information related to CRSP MC's rate 
implementation and annual updates in ``Formula Rate Implementation 
Protocols'' (Protocols). CRSP MC is also proposing changes to its 
existing Firm Point-to-Point (PTP) Transmission Service rate design in 
order to accommodate transmission service deliveries into the WALC BA. 
Each of these topics is described in more detail below.
    The proposed formula rates will provide sufficient revenue to 
recover annual operation, maintenance, replacement, and interest 
expense while ensuring repayment of the project within the cost 
recovery criteria set forth in Department of Energy (DOE) Order 
RA6120.2. For more specific information on the proposed formula rates, 
please see the customer rate brochure located on CRSP MC's Rates 
website at: www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/.

Proposed Transmission Formula Rate

    For transmission service provided by SPP under SPP's Tariff, under 
Rate Schedule CRCMT-ATRR, CRSP MC proposes to provide its overall CRSP 
annual transmission revenue requirement (ATRR) as separate subtotals to 
distinguish CRSP transmission facilities in the CRSPZ from facilities 
in other SPP zones. SPP will utilize these CRSP ATRR subtotals, along 
with zonal and regional load and other applicable information, to 
calculate the applicable charges and revenue distribution for SPP 
transmission service under the SPP Tariff.
    Consistent with CRSP MC's current transmission formula rates, CRSP 
MC proposes to continue recovering transmission-related expenses and 
investments on a forward-looking basis by using projections to estimate 
transmission costs for the upcoming year, with a true-up of incurred 
costs in a subsequent year. Transmission-related annual costs include 
operation and maintenance, administrative and general costs, interest, 
and depreciation. The annual costs will be reduced by applicable 
revenue credits received by CRSP MC under the SPP Tariff.
    Revenue requirement data will be submitted to SPP in standard 
formula rate templates with costs classified as either ``Zonal'' or 
``Regional,'' applying the definitions in the SPP Tariff. ``Zonal'' 
costs are those that meet certain criteria and are recovered within the 
local pricing zone, while ``Regional'' costs are those meeting certain 
criteria eligible to be recovered across SPP's Western BA area. The 
Formula Rate Template for the CRSP ATRR and related information will be 
posted on CRSP MC's Colorado River Colorado Missouri (CRCM) Open Access 
Same-Time Information System (OASIS) website (www.oasis.oati.com/CRCM/index.html), on CRSP MC's Rates website (www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/), and on SPP's Member Related Postings website 
(opsportal.spp.org/OASIS/Directory/Member%20Related%20Postings).

Proposed Formula Rate for Scheduling, System Control, and Dispatch 
Service

    SSCD Service is required to operate a Transmission Owner's SPP 
Tariff facilities and schedule movement of power through, out of, 
within, or into one or both of the SPP BA areas and certain parts of 
the transmission system not located within a SPP BA area. Under this 
proposal, CRSP MC's ARR for SSCD Service, under Rate Schedule CRCMT-
AS1, will be submitted to SPP in a standard formula rate template for 
inclusion in the SPP Tariff Schedule 1. The SSCD Service ARR will be 
used by SPP to determine the regional SPP Schedule 1 rate and revenue 
distribution for SPP through-and-out transactions and to determine the 
zonal SPP Schedule 1 rate and revenue distribution for the CRSPZ under 
the SPP Tariff.
    For consistency with the CRSP ATRR proposal, CRSP MC proposes a 
formula-based rate methodology to calculate its SSCD Service ARR on a 
forward-looking basis by using projections to estimate costs associated 
with SSCD Service for the upcoming year, with a true-up of incurred 
costs in a subsequent year. CRSP MC's SSCD Service ARR will be derived 
by calculating CRSP MC's

[[Page 106475]]

applicable annual costs associated with the provision of SSCD Service, 
including operation and maintenance, administrative and general, 
interest, and depreciation. The annual costs will be reduced by any 
applicable revenue received by CRSP MC under the SPP Tariff. The 
Formula Rate Template for the SSCD Service and related information will 
be posted on CRSP MC's CRCM OASIS website, on CRSP MC's Rates website, 
and on SPP's Member Related Postings website (see web addresses listed 
previously).

Formula Rate Implementation Protocols

    For transmission service provided by SPP under SPP's Tariff, CRSP 
MC proposes to provide information relating to CRSP MC's rate 
implementation and annual update procedures and timelines in ``Formula 
Rate Implementation Protocols'' (Protocols). The Protocols, together 
with the above-mentioned formula rate templates, comprise the Formula 
Rates that will be submitted to SPP to be incorporated in the SPP 
Tariff. All relevant information pertaining to CRSP MC's annual 
updates, customer notifications and review periods, and meetings will 
be contained in the Protocols. The Protocols will be posted on CRSP 
MC's CRCM OASIS website, on CRSP MC's Rates website, and on SPP's 
Member Related Postings website (see web addresses listed previously).

CRSP Deliveries Into WALC BA

    CRSP MC proposes to pseudo-tie certain generation into the WALC BA 
to serve a group of customers in its Southern Division marketing area. 
As part of these arrangements, CRSP MC will retain a portion of its 
transmission system from Glen Canyon to Pinnacle Peak under WAPA's 
functional control and under WAPA's Tariff. Accordingly, this 
identified portion of CRSP MC transmission system will not be 
transferred to SPP's functional control and will not be governed by 
SPP's Tariff.
    For transmission service provided by CRSP MC under WAPA's Tariff, 
under Rate Schedule CRCMT-PTP, CRSP MC proposes a revenue requirement 
consistent with CRSP MC's current PTP Transmission Formula Rate. For 
consistency with the CRSP ATRR proposal, and consistent with CRSP MC's 
current transmission formula rates, CRSP MC proposes to continue 
recovering transmission-related expenses and investments on a forward-
looking basis by using projections to estimate transmission costs for 
the upcoming year, with a true-up of incurred costs in a subsequent 
year. Transmission-related annual costs include operation and 
maintenance, administrative and general costs, interest, and 
depreciation. The Formula Rate Template for the CRSP PTP ATRR and 
related information will be posted on CRSP MC's CRCM OASIS website and 
on CRSP MC's Rates website (see web addresses listed previously).

Legal Authority

    DOE procedures for public participation in power and transmission 
rate adjustments are located at 10 CFR part 903. The proposed action is 
a major rate adjustment, as defined by 10 CFR 903.2(d). In accordance 
with 10 CFR 903.15(a) and 10 CFR 903.16(a), CRSP MC will hold public 
information and public comment forums for this rate adjustment. CRSP MC 
will review and consider all timely public comments at the conclusion 
of the consultation and comment period and adjust the proposal as 
appropriate. The rates will then be approved on an interim basis.
    WAPA is establishing the formula rates for CRSP 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 section 5 of the Flood Control Act of 1944 (16 U.S.C. 
825s); and other acts that specifically apply to the projects 
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 rates are available for inspection and copying at the Colorado 
River Storage Project Management Center located at 1800 South Rio 
Grande Avenue, Montrose, Colorado. Many of these documents and 
supporting information are also available on CRSP MC's Rates website 
at: www.wapa.gov/about-wapa/regions/crsp/rates/2026-rate-adjustment-transmission-and-ancillary-services/.

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 December 
19, 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 December 19, 2024.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-30863 Filed 12-27-24; 8:45 am]
BILLING CODE 6450-01-P
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