Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices 5423

Issued in Washington, DC on January 26, 

2005. 

Sharon A. Evelin, 

Acting Director, Records Management 

Division, Office of the Chief Information 

Officer.

[FR Doc. 05–1889 Filed 2–1–05; 8:45 am] 

BILLING CODE 6450–01–P

DEPARTMENT OF ENERGY

Bonneville Power Administration 

[BPA File No. TR–06] 

2006 Transmission Rate Case; Public 

Hearing and Opportunities for Public 

Review and Comment

AGENCY: Bonneville Power 

Administration (BPA), Department of 

Energy (DOE).

ACTIONS: Notice of 2006 Transmission 

Rate Case. 

SUMMARY: BPA File No. TR–06. BPA 

requests that all comments and 

documents intended to become part of 

the Official Records in this proceeding 

contain the file number designation TR–

06. 

BPA’s existing transmission and 

ancillary services rates expire 

September 30, 2005. BPA will establish 

transmission and ancillary service rates 

in this proceeding for the period from 

October 2005 through September 2007, 

fiscal years (‘‘FY’’) 2006 and 2007 

(‘‘2006–2007 Rate Period’’). 

BPA’s Transmission Business Line 

(‘‘TBL’’) held several public meetings 

with customers over the period July 

through September 2004 to discuss 

transmission costs, revenues, and rate 

design issues for the 2006–2007 Rate 

Period. The customers expressed 

interest in meeting with TBL to develop 

a settlement for the 2006–2007 Rate 

Period. Continued meetings between 

October and early December resulted in 

a Settlement Agreement. TBL’s initial 

rate proposal (‘‘Initial Proposal’’) 

reflects the terms of the Settlement 

Agreement.

DATES: Persons wishing to become 

formal parties to the proceeding must 

notify BPA in writing of their intention 

to do so by the requirements stated in 

this Notice. Petitions to intervene must 

be received by BPA no later than 4:30 

p.m., Pacific Time, on February 14, 

2005. 

The rate adjustment proceeding will 

begin with a pre-hearing conference at 

9 a.m., Pacific Time, on February 16, 

2005, in Portland, Oregon, at the 

address stated below. Due to increased 

security, attendees should allow 

additional time for entry into the 

building. Attendees will need a photo 

ID and will need to sign in at the 

security desk. 

Written comments by non-party 

participants must be received by March 

16, 2005, to be considered in the Record 

of Decision (‘‘ROD’’).

ADDRESSES: 

1. Petitions to intervene should be 

directed to Jonathan Shardlow, Hearing 

Clerk—LT–7, Bonneville Power 

Administration, 905 NE 11th Ave., 

Portland, Oregon, 97232. In addition, a 

copy of the petition must be served 

concurrently on BPA’s General Counsel 

and directed to Charles H. Combs—LT–

7, Office of General Counsel, 905 NE 

11th Ave., Portland, Oregon 97232 (see

Part III, A for more information). 

2. Written comments by non-party 

participants should be submitted to Rate 

Case, TBL Communications—T–Ditt2, 

Bonneville Power Administration, PO 

Box 491, Vancouver, WA 98666. You 

also may e-mail your comments to: 

tblfeedback@bpa.gov.

3. The pre-hearing conference will be 

held in the BPA Rates Hearing Room, 

2nd floor, 911 NE 11th Ave., Portland, 

Oregon, at 9 a.m., Pacific Time, on 

February 16, 2005. Compact discs 

(‘‘CD’’) containing the Initial Proposal 

documents, in PDF format, will be 

provided to parties at the pre-hearing 

conference. The Settlement Agreement, 

studies and documentation also will be 

available on BPA’s Web site at http://

www.transmission.bpa.gov/Business/

Rates_and_Tariff/2006RateCase.cfm,

and may be viewed at BPA’s Public 

Reference Room, 1st floor, 905 NE 11th 

Ave., Portland, Oregon.

FOR FURTHER INFORMATION CONTACT:

Information also may be obtained from 

Debbie Stout, TBL Communications—

T–Ditt2, Bonneville Power 

Administration, PO Box 491, 

Vancouver, WA 98666; by phone at 

(360) 418–8995 or toll free at 1–888–

276–7790; or via e-mail to 

dastout@bpa.gov.

Responsible Official: Mr. Dennis 

Metcalf, Transmission Rate Case 

Manager, is the official responsible for 

the development of BPA’s transmission 

and ancillary service rates.

SUPPLEMENTARY INFORMATION:

Table of Contents 

Part I—Introduction and Procedural 

Background 

Part II—Purpose and Scope of Hearing 

Part III—Public Participation 

Part IV—Major Studies and Summary of 

Transmission Rate Proposal 

Part V—2006 Transmission and Ancillary 

Service Rate Schedules

Part I—Introduction and Procedural 

Background 

Section 7(i) of the Northwest Power 

Act, 16 U.S.C. 839e(i), requires that 

BPA’s rates be established according to 

certain procedures. These procedures 

include, among other things, 

publication of notice of the proposed 

rates in the Federal Register; one or 

more hearings conducted as 

expeditiously as practicable by a 

Hearing Officer; opportunity for both 

oral presentation and written 

submission of views, data, questions, 

and arguments related to the proposed 

rates; and a decision by the 

Administrator based on the record. 

BPA’s rate proceedings are governed by 

BPA’s Procedures Governing Bonneville 

Power Administration Rate Hearings, 51 

FR 7611 (1986) (‘‘Procedures’’). These 

Procedures implement the statutory 

Section 7(i) requirements. This rate 

proceeding will be governed by Section 

1010.9 of the Procedures providing for 

a general rate proceeding, as modified 

by the Hearing Officer at the pre-hearing 

conference. However, BPA will not hold 

any field hearings to provide for nonparty participant oral comments. 

Section 1010.7 of the Procedures 

prohibits ex parte communications. BPA 

imposed ex parte limitations beginning 

January 17, 2005.

The Bonneville Project Act, 16 U.S.C. 

832; the Flood Control Act of 1944, 16 

U.S.C. 825s; the Federal Columbia River 

Transmission System Act, 16 U.S.C. 

838; the Northwest Power Act, 16 U.S.C. 

839; and the Federal Power Act, 16 

U.S.C. 824k(i)(1)(B)(ii) provide guidance 

regarding BPA’s ratemaking. With 

regard to transmission rates, the 

Northwest Power Act requires BPA to 

set rates that are sufficient to recover, in 

accordance with sound business 

principles, the cost of transmitting 

electric power, including amortization 

of the Federal investment over a 

reasonable period of years, and the other 

costs and expenses incurred by the 

Administrator. The Federal Columbia 

Transmission System Act requires that 

the costs of the Federal Columbia River 

Transmission System be equitably 

allocated between Federal and nonFederal power utilizing the system. In 

addition, rates for Federal Energy 

Regulatory Commission (‘‘FERC’’ or 

‘‘Commission’’)-ordered transmission 

service shall be at rates and charges that 

permit the recovery of all costs incurred 

in connection with the transmission 

service and necessary associated 

services. 

A proposed schedule for the formal 

hearing is stated below. A final schedule

5424 Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices 

1Promoting Wholesale Competition Through 

Open Access Non-Discriminatory Transmission 

Services by Pubic Utilities; Recovery of Stranded 

Costs by Public Utilities and Transmitting Utilities, 

Reg-Preamble, FERC Stats & Regs 1991–96, para. 

31,036 (1996).

2Open Access Same-Time Information System 

(formerly Real-Time Information Networks) and 

Standards of Conduct, Reg-Preamble, FERC Stats & 

Regs 1991–96, para. 31,035 (1996).

will be established by the Hearing 

Officer at the pre-hearing conference.

February 14, 2005, Petitions to Intervene 

February 16, 2005, Pre-hearing 

Conference and Filing of BPA Direct 

Case 

February 22, 2005, Clarification 

February 24, 2005, Objections to Initial 

Proposal 

February 28, 2005, Scheduling 

Conference 

March 16, 2005, Participant Comments 

Due 

June 20, 2005, Final ROD—Final 

Studies 

Part II—Purpose and Scope of Hearing 

A. Key Components 

1. Overview 

BPA is committed to marketing its 

power and transmission services 

separately in a manner that is modeled 

after the regulatory initiatives to 

promote competition in wholesale 

power markets that were adopted by the 

Commission in 1996. The Commission’s 

initiatives in Orders 888 1 and 889 2

directed public utilities regulated under 

the Federal Power Act to separate their 

power merchant functions from their 

transmission reliability functions; 

unbundle transmission and ancillary 

services from wholesale power services; 

and set separate rates for wholesale 

generation, transmission, and ancillary 

services. Although BPA is not required 

by statute to follow the Commission’s 

regulatory directives promoting 

competition and open access 

transmission service, BPA has elected to 

separate its power and transmission 

operations and unbundle its rates in a 

manner consistent with the directives 

concerning open access transmission 

service. Accordingly, in 1996 BPA 

established separate business lines: 

BPA’s Power Business Line (‘‘PBL’’) 

which performs BPA’s wholesale 

merchant functions, and BPA’s TBL 

which performs BPA’s transmission 

system operations and reliability 

functions. BPA develops its 

transmission rates in separate 

proceedings from its power rates.

2. PBL as a Party to the Rate Case 

Because BPA has separated its power 

and transmission functions, sets its 

power and transmission rates in 

separate proceedings, and PBL is a TBL 

transmission customer, it is appropriate 

that the PBL be a party to the 

transmission rate proceeding. 

Accordingly, PBL will be considered a 

party to the Transmission Rate Case for 

all purposes under the BPA Procedures. 

The PBL may file testimony and briefs 

as a party and will be entitled to all 

other procedural rights of a party. In 

particular, the PBL shall be considered 

a party for purposes of ex parte 

communications. 

3. Two-Year Transmission Rate Period 

The rate period for the rates proposed 

in this transmission rate adjustment 

proceeding is two years, the 2006–2007 

Rate Period. A two-year rate period 

balances the need for a short rate period 

to limit revenue and cost risks with the 

significant resource and time 

requirements needed to plan and carry 

out a rate case. 

4. Settlement Agreement 

TBL and most of its customers are 

parties to a Settlement Agreement that 

provides for TBL to submit an initial 

transmission rate proposal that 

incorporates the provisions of the 

Settlement Agreement. The Settlement 

Agreement specifies rate levels for 

BPA’s transmission and ancillary 

service rates during the 2006–2007 Rate 

Period, as provided in Attachment 1 to 

the Agreement and reflected in the 

proposed Rate Schedules. Other major 

provisions of the Settlement Agreement 

include:

a. Payment by TBL to PBL of $1.5 

million per year for redispatch services 

described in a revised Attachment K to 

BPA’s Open Access Transmission Tariff 

(‘‘OATT’’). The Settlement Agreement 

provides that TBL agrees to file with the 

Commission, and the signatories to the 

Settlement Agreement agree not to 

challenge, the revised Attachment K. 

BPA will file the revised Attachment K 

as a proposed amendment to BPA’s 

OATT to be effective as of October 1, 

2005. Such filing will not be part of this 

rate proceeding; 

b. Network Integration rate schedule 

language limiting the amount of 

Customer-Served Load (‘‘CSL’’), and a 

TBL commitment to work with 

customers prior to October 2011, the 

date on which TBL intends to eliminate 

CSL, to determine whether a transition 

mechanism is appropriate for NT 

customers with CSL; 

c. TBL commitment, effective on the 

date TBL signs the Settlement 

Agreement, to apply the methodologies 

in FERC Order 2003–A for determining, 

funding, and allocating the costs of 

facilities associated with generator 

interconnections, and revisions to the 

Advance Funding (‘‘AF’’) rate; 

d. PBL agreement to charge federal 

power customers that are served over 

non-federal facilities (‘‘General Transfer 

Agreement’’ or ‘‘GTA’’ service), which 

PBL pays for, the same low-voltage 

delivery charge applicable to customers 

served over federal Delivery facilities 

during the 2006–2007 Rate Period. For 

the period beginning in FY 2008, the 

GTA delivery charge will be determined 

in the power rate case. PBL also agrees 

to hold a rates workshop or other public 

forum in advance of the power rate case; 

e. TBL commitment to work with 

customers in the Business Practice 

Forum to develop a business practice for 

self-supply of Generation Supplied 

Reactive from qualifying non-federal 

generators; 

f. Failure to Comply Penalty Charge 

revisions, which include a requirement 

to curtail actual use; 

g. TBL’s expected use of $15 million 

in each year of the 2006–2007 Rate 

Period of TBL’s financial reserves as a 

funding source for transmission capital 

programs, and the reflection of such use 

in the calculation and presentation of 

the transmission revenue requirement; 

h. Rate schedule revisions that would 

bill hourly non-firm transmission 

service based on reservations instead of 

on schedules, when TBL has systems in 

place to do so; 

i. TBL commitment to work to 

develop a conditional firm transmission 

product, and to conduct an expedited 

rate case and make filings if necessary 

to implement the product; 

j. Formula rates to adjust for (1) FY 

2007 PBL generation inputs for 

Regulation and Frequency Response, 

Operating Reserves, and GenerationSupplied Reactive ancillary services, as 

determined in the next BPA power rate 

case; (2) TBL payments for non-federal 

generation-supplied reactive made 

under FERC-approved rates; and (3) selfsupply of generation-supplied reactive. 

The ASC–06 Regulation and Frequency 

Response Service rate and the Operating 

Reserve—Spinning Reserve Service and 

Operating Reserve—Supplemental 

Reserve Service rates would be adjusted 

one time, on October 1, 2006. The ASC–

06 Reactive Supply and Voltage Control 

from Generation Sources Service rate, 

FPT–06.1 Formula Power Transmission 

rate, and IR–06 Integration of Resources 

rate would be calculated on a quarterly 

basis beginning October 2005; and 

k. A provision to be added to the 

Point-to-Point (‘‘PTP’’), Southern 

Intertie (‘‘IS’’), and Montana Intertie 

(‘‘IM’’) rate schedules limiting 

Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices 5425

additional charges for redirecting LongTerm service to Short-Term service. 

The Settlement Agreement recognizes 

the possibility that parties to the 2006 

Transmission Rate Case that have not 

signed the Settlement Agreement may 

object to the TBL’s Initial Proposal. If 

any party objects to the Initial Proposal, 

TBL may continue to defend the Initial 

Proposal or submit a revised proposal. 

If TBL submits a revised proposal, 

signatories to the Settlement Agreement 

may contest any aspect of the revised 

proposal. If TBL does not revise its 

Initial Proposal, and the Administrator 

establishes transmission rates consistent 

with the Initial Proposal, the signatories 

have agreed not to challenge approval of 

the rates by FERC or in any judicial 

forum. 

B. Cost Increases and Revenue 

Reductions 

For nearly a decade, BPA has been 

increasing its focus on the reliability 

and availability of the federal 

transmission system. In 1996, two major 

transmission outages affected the 

western United States. Over the past few 

years, industry deregulation, drought in 

California and the Northwest, changes 

in use of the transmission system, 

constraints in the federal transmission 

system, and the blackout in the 

Northeastern United States in 2003, all 

have contributed to an intensified 

regional focus on transmission system 

reliability and availability and their 

effect on energy costs. In order to 

maintain transmission system reliability 

and availability, BPA developed an 

infrastructure plan with objectives to 

reinforce the transmission system to 

continue compliance with national 

reliability standards; maintain and 

improve the availability of the 

transmission system, and remove or 

manage constraints on the system. In 

addition, BPA also adopted new tools 

for evaluating how the main grid 

transmission system is used.

During the current rate period, TBL 

has completed and put into service 

three major components of its 

infrastructure program, the 500 kV 

Kangley-Echo Lake line; 500 kV BellGrand Coulee line; and modernization 

of the Celilo Direct Current Terminal. In 

early FY 2006, a fourth major 

component, the 500 kV SchultzWautoma line, is scheduled to enter 

service. 

Since the 2004 Transmission Rate 

Case, transmission revenues declined 

significantly compared to the forecasts. 

In response, TBL increased efforts to 

find efficiencies in its programs, 

deferred some transmission 

improvements, reduced operating 

expenditures, and further cut program 

costs in an attempt to stay within actual 

revenues. The drop in revenues for FY 

2004 and FY 2005 and the resulting 

deferred operations and maintenance 

work, together with an increase in costs 

due to completion of high-priority 

capital projects, created tension between 

reliability and cost recovery. 

TBL is projecting sales during the 

2006–2007 Rate Period similar to the 

reduced level of sales encountered in 

the current rate period. The increased 

costs due to infrastructure projects, and 

the reduced sales experienced during 

the current rate period which are 

forecast to continue in the 2006–2007 

Rate Period, are the major contributors 

to the need for increased rates. 

C. Overview of the Public Process 

1. Program Level Funding Workshops—

Programs in Review 

During the spring and summer of 

2004, TBL provided an opportunity for 

public participation and input on TBL 

program cost levels through the 

Programs In Review (‘‘PIR’’) process. 

PIR opened on May 3, 2004, with a 

notification by mail to TBL customers 

and interested parties. Notices also were 

published on TBL’s external website. 

Seven public meetings were held 

around the region during June and July 

2004. At these public meetings, TBL 

discussed issues concerning future 

capital investments in the transmission 

system and proposed expense levels for 

transmission system development, 

operation, maintenance, and reliability 

for FY 2006—2007. A total of 147 

entities attended the regional meetings. 

In response to a request from customers 

for additional information and 

discussion of specific program level 

issues, technical meetings were held on 

August 5 and August 25, 2004. TBL also 

provided informational materials 

through direct mailings, written 

responses to customer letters, emailings, and publication of all BPA 

and customer-generated materials on 

TBL’s external website and through 

making staff available to answer 

questions. 

The PIR workshops and technical 

meetings explored customers’ and 

interested parties’ views on: (1) 

Operating and maintaining an aging 

transmission system; 

(2) building and maintaining a 

business framework in a changing 

energy industry; (3) building a 

transmission infrastructure to meet load 

growth, provide stability for existing 

contracts, ensure transmission system 

reliability, and integrate new resources; 

(4) maintaining a skilled and trained 

workforce; (5) TBL’s access to capital; 

(6) TBL and corporate staffing and 

related corporate costs; and (7) 

operating expenses increasing faster 

than the rate of inflation. TBL accepted 

written and oral comments on proposed 

transmission programs, including 

expense and capital spending levels, 

through September 15, 2004. A oneweek extension was given for comment 

on the maintenance program for 

transmission facilities 115 kV and 

below, until September 24, 2004. 

After consideration of the customer 

comments, BPA closed out the PIR 

public process by issuing a decision 

from the Administrator on transmission 

spending levels for the proposed rate 

period. The Initial Proposal is consistent 

with the results of the Administrator’s 

decision on transmission program 

spending levels. 

2. Transmission Rate Case Customer 

Workshops 

In preparation for the formal 2006 

Transmission Rate Case, TBL held an 

initial public workshop on July 15, 

2004, for customers and other interested 

parties. Three additional public 

workshops and meetings were held in 

August and September, 2004, for 

customers and interested parties during 

which TBL presented information about 

costs, revenue forecasts, transmission 

products, pricing, and rate design 

issues. See http://

www.transmission.bpa.gov/Business/

Rates_and_Tariff/2006RateCase.cfm. 

3. Settlement Discussions 

During the rate case workshop 

meetings, the customers approached 

BPA about settlement of the rate case. 

The customers and other interested 

parties met with BPA during October, 

November, and early December to 

discuss settlement. The discussions 

resulted in the Settlement Agreement, 

which was offered by TBL on December 

6, 2004, signed by customers through 

January 7, 2005, and signed by TBL on 

January 11, 2005.

D. Scope of the Transmission Rate 

Proceeding 

Many of the decisions that determine 

TBL’s costs have been or will be made 

in public review processes other than 

the transmission rate proceeding. This 

section provides guidance to the 

Hearing Officer as to those matters that 

are within the scope of the transmission 

rate proceeding and those that are 

outside the scope. 

1. Spending Levels 

As described above, Programs In 

Review workshops were held 

5426 Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices 

throughout the region to clarify, discuss, 

and provide the public the opportunity 

to comment orally and in writing on 

BPA’s proposed capital expenditures 

and expenses for transmission. After 

considering all comments, the 

Administrator closed out the public 

process by issuing a decision on 

spending levels for FY 2006–2007. That 

decision serves as the basis for the 

transmission capital and expense levels 

that are reflected in the transmission 

rate proposal. Pursuant to section 

1010.3(f) of BPA’s Procedures, the 

Administrator directs the Hearing 

Officer to exclude from the record any 

evidence or arguments that seek in any 

way to challenge the appropriateness or 

reasonableness of the Administrator’s 

decision on transmission spending 

levels and sources of capital, including 

capital and expense levels reviewed in 

the Programs in Review public process. 

If any re-examination of sources of 

capital and spending levels is necessary, 

that re-examination will occur outside 

of the rate proceeding. 

However, the foregoing direction to 

the Hearing Officer does not apply to 

the following matters: Customer 

advance capital funding, revenue 

financing, reserve financing, the proper 

modeling of financing methods in rate 

case studies, interest rate forecasts, 

scheduled amortization, forecast 

depreciation, forecasts of system 

replacements for repayment studies, 

interest expense, expense and revenue 

uncertainties, and risks included in the 

risk analysis. 

2. Issues Decided in Power Rate 

Proceeding 

A number of issues that affect 

transmission and ancillary service rates 

have been addressed in BPA’s 2002 

Power Rate Case. On June 20, 2001, the 

Administrator established wholesale 

power rates for the period October 1, 

2001, through September 30, 2006. The 

Commission granted final approval of 

the rates on July 21, 2003. In the Power 

Rate Case, the Administrator made 

decisions regarding the following: A 

methodology for functionalizing 

generation and transmission costs, 

including a methodology for 

functionalizing corporate overhead costs 

to the business lines; costs for 

generation inputs for ancillary services, 

including operating reserves, regulating 

reserve, and reactive power and voltage 

control from generation resources; the 

generation costs of station service and 

remedial action schemes; and the 

allocation of the costs of generation 

integration and generator step-up 

transformers to the business lines. 

The Initial Proposal for transmission 

rates in FY 2006 is consistent with the 

results of the Administrator’s decision 

on these and all other issues decided in 

the Power Rate Case and will be 

reflected in all final decisions made in 

the transmission rate proceeding. The 

Administrator directs the Hearing 

Officer to exclude from the record all 

evidence and argument that seek in any 

way to address or revisit final decisions 

that were made in the 2002 Power Rate 

Case. In addition, the Administrator 

directs the Hearing Officer to exclude 

from the record all evidence and 

testimony that seek in any way to 

address the same issues for the rates for 

FY 2007, since those issues will be 

covered in the next power rate case. 

However, this direction to the Hearing 

Officer does not apply to the design of 

formula rates to recover those costs in 

FY 2007, nor does it apply to generation 

costs of station service and remedial 

action schemes, nor to generation 

integration costs that are forecasted in 

the 2006 Transmission Rate Case. 

3. Revised Attachment K 

The Administrator directs the Hearing 

Officer to exclude from the record all 

evidence and argument that seek in any 

way to address revised Attachment K to 

BPA’s OATT. BPA is not required by 

law to, and does not, amend its OATT 

in this rate proceeding. BPA will be 

submitting a revised Attachment K to 

the Commission for approval. A party 

may raise challenges to revised 

Attachment K to the Commission at that 

time, unless the party has signed the 

Settlement Agreement and TBL does not 

revise its Initial Proposal. 

4. The National Environmental Policy 

Act 

BPA is in the process of assessing the 

potential environmental effects of its 

Initial Proposal, as required by the 

National Environmental Policy Act 

(‘‘NEPA’’). The Administrator directs 

the Hearing Officer to exclude from the 

record all evidence and argument that 

seek in any way to address the potential 

environmental impacts of the rates 

being developed in the 2006 

Transmission Rate Case. BPA’s Business 

Plan Environmental Impact Statement 

(‘‘Business Plan EIS’’), completed June 

1995, evaluated the environmental 

impacts of a range of business plan 

alternatives that could be varied by 

applying policy modules, including one 

for rates. Any combination of alternative 

policy modules should allow BPA to 

balance its costs and revenues. 

However, the EIS also addressed 

response strategies BPA could pursue if 

BPA’s costs exceeded its revenues. 

In August 1995, the BPA 

Administrator issued a Record of 

Decision (‘‘Business Plan ROD’’) that 

adopted the Market-Driven Alternative 

from the Business Plan EIS. This 

alternative was selected because, among 

other reasons, it allows BPA to: (1) 

Recover costs through rates; (2) 

competitively market BPA’s products 

and services; (3) develop rates that meet 

customer needs for clarity and 

simplicity; (4) continue to meet BPA’s 

legal mandates; and (5) avoid adverse 

environmental impacts. BPA also 

committed to apply as many response 

strategies as necessary when BPA’s costs 

and revenues do not balance.

Because the Initial Proposal likely 

would assist BPA in accomplishing 

these goals, the proposal appears 

consistent with these aspects of the 

Market-Driven Alternative. In addition, 

this rate proposal is similar to the type 

of rate designs and resulting rate levels 

evaluated in the Business Plan EIS; thus 

implementation of this rate proposal 

would not be expected to result in 

significantly different environmental 

impacts from those examined in the 

Business Plan EIS. Therefore, BPA 

expects that this rate proposal will fall 

within the scope of the Market-Driven 

Alternative that was evaluated in the 

Business Plan EIS and adopted in the 

Business Plan ROD. As part of the 

Administrator’s Record of Decision that 

will be prepared regarding this 2006 

Transmission Rate Case, BPA may tier 

its decision under NEPA to the Business 

Plan ROD. However, depending upon 

the ongoing environmental review, BPA 

may, instead, issue another appropriate 

NEPA document. 

Part III—Public Participation 

A. Distinguishing Between 

‘‘Participants’’ and ‘‘Parties’’

BPA distinguishes between 

‘‘participants in’’ and ‘‘parties to’’ the 

hearings. Apart from the formal hearing 

process, BPA will receive written 

comments, views, opinions, and 

information from ‘‘participants,’’ who 

are defined in the BPA Procedures as 

persons who may submit comments 

without being subject to the duties of, or 

having the privileges of, parties. 

Participants’ written comments will be 

made part of the official record and 

considered by the Administrator. 

Participants are not entitled to 

participate in the pre-hearing 

conference; may not cross-examine 

parties’ witnesses, seek discovery, or 

serve or be served with documents; and 

are not subject to the same procedural 

requirements as parties. 

Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices 5427

Written comments by participants 

will be included in the record if they are 

received by March 16, 2005. Written 

views, supporting information, 

questions, and arguments should be 

submitted to Rate Case, TBL 

Communications, at the address listed 

in the ADDRESSES section of this Notice, 

or may be e-mailed to 

tblfeedback@bpa.gov.

Persons wishing to become a party to 

this transmission rate adjustment 

proceeding must notify BPA in writing. 

Petitioners may designate no more than 

two (2) representatives upon whom 

service of documents will be made. 

Petitions to intervene shall state the 

name and address of the person 

requesting party status, and the person’s 

interest in the hearing. 

Petitions to intervene as parties in the 

rate proceeding are due to the Hearing 

Officer by 4:30 p.m., Pacific Time, on 

February 14, 2005. The petition should 

be directed to: Jonathan Shardlow, 

Hearing Clerk—LT–7, Bonneville Power 

Administration, 905 NE 11th Avenue, 

Portland, ORregon 97232. 

A copy of the petition should be 

served on BPA’s General Counsel and 

directed to Charles H. Combs—LT–7, 

Office of General Counsel, 905 NE 11th 

Ave., Portland, Oregon 97232. 

Petitioners must explain their 

interests in sufficient detail to permit 

the Hearing Officer to determine 

whether they have a relevant interest in 

the hearing. Pursuant to Rule 1010.1(d) 

of BPA’s Procedures, BPA waives the 

requirement in Rule 1010.4(d) that an 

opposition to an intervention petition be 

filed and served 24 hours before the prehearing conference. Any opposition to 

an intervention petition may instead be 

made at the pre-hearing conference. Any 

party, including BPA, may oppose a 

petition for intervention. Persons who 

have been denied party status in any 

past BPA rate proceeding shall continue 

to be denied party status unless they 

establish a significant change of 

circumstances. All timely applications 

will be ruled on by the Hearing Officer. 

Late interventions are strongly 

disfavored. Opposition to a petition to 

intervene filed after the pre-hearing 

conference shall be filed, and must be 

received by BPA, within two (2) days 

after service of the petition. 

B. Developing the Record 

The hearing record will include, 

among other things, the transcripts of 

the hearing, written material entered 

into the record by TBL and the parties, 

written comments from participants and 

other material accepted into the record 

by the Hearing Officer. The Hearing 

Officer then will review the record and 

will certify the record to the 

Administrator for decision. 

The Administrator will develop final 

proposed rates based on the record, 

information from the PIR, documents 

prepared pursuant to the National 

Environmental Policy Act and other 

environmental statutes, and such other 

material or information as may have 

been submitted to or developed by the 

Administrator. The Administrator will 

serve copies of the Final Record of 

Decision on all parties. BPA will file its 

rates with the Commission for 

confirmation and approval after 

issuance of the Final Record of 

Decision. 

During the rate proceeding, TBL must 

continue to meet with customers in the 

ordinary course of business. To comport 

with the rate case procedural rule 

prohibiting ex parte communications, 

TBL will provide necessary notice of 

meetings involving rate proceeding 

issues to provide an opportunity for 

participation by all rate proceeding 

parties. Parties should be aware, 

however, that such meetings may be 

held on very short notice and should be 

prepared to devote the necessary 

resources to participate fully in every 

aspect of the rate proceeding. 

Part IV—Major Studies and Summary 

of Transmission Rate Proposal 

A. Major Studies 

1. Revenue Requirement Study—This 

Study includes the calculation of 

transmission revenue requirements for 

the 2006–2007 Rate Period and 

demonstration of cost recovery for the 

transmission function. The Revenue 

Requirement Study also includes an 

analysis of financial risks. 

2. Revenue Forecast Testimony—This 

testimony includes the FY 2006 and 

2007 revenue forecast at current 2004 

transmission and ancillary service rates 

and at proposed 2006 rate levels based 

on forecasted loads and sales during the 

period. 

B. Summary of Proposal 

1. Transmission rates—TBL is 

proposing five rate schedules for the use 

of its Integrated Network segment:

• Formula Power Transmission (FPT–

06.1 and FPT–06.3) rates—The two FPT 

rates are based on the cost of specific 

types of facilities including a distance 

component for the use of transmission 

lines, and are charged on a contract 

demand basis. Included in the FPT rates 

are the costs of the two required 

ancillary services: Scheduling, System 

Control and Dispatch Service and 

Reactive Supply and Voltage Control 

from Generation Sources Service. The 

FPT–06.1 rate is proposed for contracts 

that allow annual rate adjustments. The 

FPT–06.1 rate is a formula rate that is 

calculated quarterly to reflect the 

quarterly change in the Reactive Supply 

and Voltage Control from Generation 

Sources Service rate, a small component 

of the cost basis of the FPT rate. The 

FPT–06.3 rate is proposed for contracts 

that allow a rate change only once every 

three years. The FPT–06.3 rate is fixed 

for the rate period at the level of the 

FPT–04.3 rate for FY 2005. Although 

TBL has not offered new FPT wheeling 

contracts since the OATT was adopted, 

a number of FPT contracts continue in 

place during the rate period. 

• Integration of Resources (IR–06) 

rate—The IR rate is a postage stamp, 

contract demand rate for the use of the 

Integrated Network, similar to the PTP 

service. Charges for the two required 

ancillary services: Scheduling, System 

Control and Dispatch Service, and 

Reactive Supply and Voltage Control 

from Generation Sources Service, are 

embedded in the IR rate. The proposed 

IR–06 rate is a formula rate that is 

calculated quarterly to reflect the 

quarterly change in the Reactive Supply 

and Voltage Control from Generation 

Sources Service rate, a small component 

of the cost basis of the IR rate. A Short 

Distance discount is available when 

resources are 75 miles or less from load. 

Although TBL is not offering new IR 

contracts, some IR contracts remain in 

place during the rate period. 

• Network Integration Transmission 

(NT–06) rate—The NT rate applies to 

customers taking Network Integration 

Transmission Service under the OATT. 

The NT rate schedule includes a Load 

Shaping Charge applied to the 

customer’s total load on the hour of the 

Monthly Transmission Peak Load, and a 

Base Charge applied to the customer’s 

total load less CSL, if any. CSL is the 

amount of load that the customer agrees 

to serve without using its NT service. 

Beginning October 2005, CSL is being 

limited to the annual amount and 

resources specified in NT service 

agreements at that time. TBL intends to 

eliminate CSL October 1, 2011. 

• Point-to-Point (PTP–06) rate—The 

PTP rate is a contract demand rate that 

applies to customers taking PTP 

Transmission Service on BPA’s 

Integrated Network facilities under the 

OATT. There are separate PTP rates for 

long-term firm service; short-term firm 

and non-firm service; and hourly firm 

and non-firm service. The rate for longterm firm service contains a Short 

Distance discount. All short-term and 

hourly PTP rates are downwardly 

flexible. The billing factor for Hourly 

Nonfirm Service will change from 

5428 Federal Register / Vol. 70, No. 21 / Wednesday, February 2, 2005 / Notices 

3Standardization of Generator Interconnection 

Agreements and Procedures, Reg-Preamble, FERC 

Stats & Regs para. 31,160 (2004).

scheduled amounts to Reserved 

Capacity on 60 day notice when changes 

to TBL systems and business practices 

have been made that will accommodate 

the Reserved Capacity billing factor. In 

addition, the rate schedule is revised to 

reflect the Settlement Agreement 

provision to limit additional charges for 

redirecting long-term service to shortterm service. 

In addition to the four rates for 

network use, other proposed 

transmission rates include: 

• The Southern Intertie (IS–06) and 

Montana Intertie (IM–06) rates are 

contract demand rates that apply to 

customers taking PTP Transmission 

Service under the OATT on the 

Southern Intertie and Montana Intertie, 

respectively. These rates are structured 

similarly, and are revised similarly, to 

the PTP rate for service on network 

facilities. 

• The Townsend-Garrison 

Transmission (TGT–06) rate and the 

Eastern Intertie rate (IE–06) are 

developed pursuant to the Montana 

Intertie agreement. 

• The Use-of-Facilities (UFT–06) rate

establishes a formula for charging for 

the use of a specific facility based on the 

annual cost of that facility. 

• The Advance Funding (AF–06) rate

allows TBL to collect the capital and 

related costs of specific facilities 

through an advance-funding 

mechanism. Revisions are proposed to 

the rate schedule to clarify its 

availability to implement FERC Order 

2003–A.3

2. Ancillary Services rates. In addition 

to the rate level changes specified in 

Attachment 1 to the Settlement 

Agreement, TBL proposes to revise 

other aspects of its Ancillary Services 

and Control Area Services rates as 

follows: 

• The rates for Scheduling, System 

Control, and Dispatch Service and 

Reactive Supply and Voltage Control 

from Generation Sources Service reflect 

the eventual change in the Hourly 

Nonfirm billing factor to Reserved 

Capacity. 

• The Reactive Supply and Voltage 

Control from Generation Sources 

Service rate is a formula rate that is 

determined quarterly beginning October 

1, 2005, to reflect the cost of non-federal 

reactive rates and self-supply, and to 

reflect the reactive cost of federal system 

resources for FY 2007 determined in a 

BPA power rate case. 

• The rates for Regulation and 

Frequency Response Service and 

Operating Reserves—Spinning and 

Supplemental are formula rates that 

adjust once on October 1, 2006, to 

reflect the generation input costs 

associated with federal system resources 

for FY 2007 determined in a BPA power 

rate case. 

3. Other Rates and Charges. Other 

charges that may apply to a customer’s 

transmission service include a Delivery 

Charge for the use of low-voltage 

delivery substations, a Power Factor 

Penalty Charge, a Reservation Fee for 

customers who delay commencement of 

long-term firm service, Incremental Cost 

Rates for transmission requests that 

require new facilities, and an 

Unauthorized Increase Charge for 

customers who exceed their contracted 

amounts. 

The proposed Failure to Comply 

Penalty Charge for failure to comply 

with TBL’s curtailment, redispatch or 

load shedding orders is revised to 

clarify that a customer must curtail, or 

redispatch actual use of the 

transmission system. Finally, the rate 

proposal includes the GTA Delivery 

Charge, set at the same level as the 

Delivery Charge for federal facilities, for 

low-voltage delivery service of federal 

power provided under GTAs and other 

non-federal transmission service 

agreements. 

Part V—2006 Transmission and 

Ancillary Service Rate Schedules 

BPA’s proposed 2006 Transmission 

Rate Schedules are available for viewing 

and downloading on TBL’s website at 

http://www.transmission.bpa.gov/

Business/Rates_ and_Tariff/

2006RateCase.cfm. A copy of the 

proposed rate schedules also is available 

for viewing in BPA’s Public Reference 

Room at the BPA Headquarters, 1st 

floor, 905 NE 11th Avenue, Portland, 

Oregon.

Issued in Portland, Oregon, on January 24, 

2005. 

Stephen J. Wright, 

Administrator and Chief Executive Officer.

[FR Doc. 05–1890 Filed 2–1–05; 8:45 am] 

BILLING CODE 6450–01–P

DEPARTMENT OF ENERGY

Federal Energy Regulatory 

Commission 

[Docket No. RP05–106–001] 

Algonquin Gas Transmission, LLC; 

Notice of Compliance Filing 

January 25, 2005. 

Take notice that on January 12, 2005, 

Algonquin Gas Transmission, LLC 

(Algonquin) tendered for filing a 

compliance filing pursuant to a 

Commission order issued on December 

28, 2004, in Docket No. RP05–106–000. 

(Algonquin Gas Transmission, LLC, 109 

FERC ¶61,371 (2004)). 

Algonquin states that, in accordance 

with paragraph 10 of the December 28 

Order, Algonquin is revising section 

1.40 of the general terms and conditions 

of its FERC Gas Tariff to provide that 

Algonquin may agree, on a not unduly 

discriminatory basis, that a firm service 

agreement subject to a negotiated or 

discounted rate qualifies as a ROFR 

agreement. 

Algonquin states that copies of the 

filing were served upon all affected 

customers of Algonquin and interested 

state commissions, as well as upon all 

parties on the Commission’s official 

service list in this proceeding. 

Any person desiring to protest this 

filing must file in accordance with Rule 

211 of the Commission’s Rules of 

Practice and Procedure (18 CFR 

385.211). Protests to this filing will be 

considered by the Commission in 

determining the appropriate action to be 

taken, but will not serve to make 

protestants parties to the proceeding. 

Such protests must be filed in 

accordance with the provisions of 

Section 154.210 of the Commission’s 

regulations (18 CFR 154.210). Anyone 

filing a protest must serve a copy of that 

document on all the parties to the 

proceeding. 

The Commission encourages 

electronic submission of protests in lieu 

of paper using the ‘‘eFiling’’ link at 

http://www.ferc.gov. Persons unable to 

file electronically should submit an 

original and 14 copies of the protest to 

the Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426. 

This filing is accessible on-line at 

http://www.ferc.gov, using the 

‘‘eLibrary’’ link and is available for 

review in the Commission’s Public 

Reference Room in Washington, DC. 

There is an ‘‘eSubscription’’ link on the 

Web site that enables subscribers to 

receive e-mail notification when a 

document is added to a subscribed 

docket(s). For assistance with any FERC 

Online service, please e-mail 

FERCOnlineSupport@ferc.gov, or call 

(866) 208–3676 (toll free). For TTY, call 

(202) 502–8659.

Magalie R. Salas, 

Secretary.

[FR Doc. E5–383 Filed 2–1–05; 8:45 am] 

BILLING CODE 6717–01–P