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[Federal Register Volume 73, Number 161 (Tuesday, August 19, 2008)]
[Notices]
[Pages 48382-48383]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19161]

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DEPARTMENT OF ENERGY

Western Area Power Administration

Loveland Area Projects--Rate Order No. WAPA-141

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order extending transmission and ancillary 
services formula rates.

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SUMMARY: This action is being taken to extend the existing Loveland 
Area Projects (LAP) transmission and ancillary services formula rates 
through February 28, 2011. The existing LAP transmission and ancillary 
services formula rates will expire February 28, 2009, with the 
exception of the Regulation and Frequency Response service rate which 
expires May 31, 2011.

FOR FURTHER INFORMATION CONTACT: Mr. James D. Keselburg, Regional 
Manager, Rocky Mountain Region, Western Area Power Administration, P.O. 
Box 3700, Loveland, CO 80539-3003, (970) 461-7201, e-mail 
[email protected], or Ms. Sheila Cook, Rates Manager, Rocky Mountain 
Region, Western Area Power Administration, P.O. Box 3700, Loveland, CO 
80539-3003, (970) 461-7211, e-mail [email protected].

SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00, effective 
December 6, 2001, the Secretary of Energy delegated: (1) The authority 
to develop power and transmission rates to the Administrator of the 
Western Area Power Administration (Western); (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, to remand, or to 
disapprove such rates to the Federal Energy Regulatory Commission 
(FERC).
    The existing formula rates approved under Rate Order No. WAPA-106 
\1\ became effective on March 1, 2004, and are approved through 
February 28, 2009. Subsequently, Rate Schedule L-AS3, Regulation and 
Frequency Response, was revised and approved under Rate Order No. WAPA-
118 and became effective June 1, 2006, and is approved through May 31, 
2011.\2\ Western is proposing to extend the existing LAP transmission 
and ancillary services formula rates pursuant to 10 CFR part 903.23 
(b). The existing LAP rate formula methodology collects annual revenue 
sufficient to recover annual expenses, including interest and capital 
requirements, thus ensuring repayment of the project within the cost 
recovery criteria set forth in DOE order RA 6120.2. Western is seeking 
this extension to provide more time for the evaluation of new rate 
requirements for transmission and ancillary services mandated under 
FERC Order 890 and the evaluation of adjustments to the formulae for 
ancillary services. For these reasons, Western is extending the 
existing rate formulae for transmission and ancillary services through 
February 28, 2011.
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    \1\ WAPA-106 was approved by FERC on a final basis on January 
31, 2005, in Docket No. EF045182-000 (110 FERC ] 62,084).
    \2\ WAPA-118 was approved by FERC on a final basis on November 
17, 2006, in Docket No. EF065182000 (117 FERC ] 62,163).
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    Western did not have a consultation and comment period and did not 
hold public information and comment forums, in accordance with 10 CFR 
part 903.23(b). Following review of Western's proposal with the DOE, I 
hereby approve Rate Order No. WAPA-141 which extends the existing LAP 
transmission and ancillary services rate

[[Page 48383]]

schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS4, L-AS5, L-AS6 and 
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L-AS7 through February 28, 2011.

    Dated: August 12, 2008.
Jeff Kupfer,
Acting Deputy Secretary.

Department of Energy

Deputy Secretary

    Rate Order No. WAPA-141.
    In the Matter of: Western Area Power Administration Rate 
Extension for Loveland Area Projects Transmission and Ancillary 
Services Formula Rates.

Order Confirming and Approving an Extension of the Loveland Area 
Projects Transmission and Ancillary Services Formula Rates

    The Loveland Area Projects (LAP) transmission and ancillary 
services rate formulae were established following section 302(a) of 
the Department of Energy (DOE) Organization Act (42 U.S.C. 7152). 
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 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 system involved.
    By Delegation Order No. 00-037.00 effective December 6, 2001, 
the Secretary of Energy delegated: (1) The authority to develop 
power and transmission rates to the Administrator of the Western 
Area Power Administration (Western); (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, to remand, or to 
disapprove such rates to the Federal Energy Regulatory Commission 
(FERC). This rate extension is issued pursuant to the Delegation 
Order and the DOE rate extension procedures at 10 CFR part 
903.23(b).

Background

    The existing formula rates, approved under Rate Order No. WAPA-
106, were approved for five (5) years and are effective through 
February 28, 2009. Subsequently, Rate Schedule L-AS3, Regulation and 
Frequency Response, was revised and approved for five (5) years 
under Rate Order No. WAPA-118 and is effective through May 31, 2011. 
Western is not seeking to extend Rate Schedule L-AS3 for Regulation 
and Frequency Response service as part of this extension.

Discussion

    On February 28, 2009, Western's LAP transmission and ancillary 
services formula rates will expire, with the exception of Regulation 
and Frequency Response service, which will expire May 31, 2011. 
Western is proposing to extend the existing LAP transmission and 
ancillary services formula rates pursuant to 10 CFR part 903.23(b). 
The existing LAP rate formulae methodologies collect annual revenue 
sufficient to recover annual expenses (including interest) and 
capital requirements, thus ensuring repayment of the project within 
the cost recovery criteria set forth in DOE order RA 6120.2. Western 
is seeking this extension to provide more time for the evaluation of 
new rate requirements for transmission and ancillary services 
mandated under FERC Order 890 and the evaluation of adjustments to 
the formulae for ancillary services. For these reasons, Western is 
extending the existing rate formulae for transmission and ancillary 
services through February 28, 2011.
    The process will take several months to complete because of the 
complex issues Western and its interested parties must address. It 
will also offer opportunities for public information and comment 
forums. For these reasons, Western seeks to extend existing Rate 
Schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS4, L-AS5, L-AS6 
and L-AS7. Western did not have a consultation and comment period 
and did not hold public information and comment forums, in 
accordance with 10 CFR part 903.23(b).

Order

    In view of the above and under the authority delegated to me, I 
hereby extend for a period effective from March 1, 2009, through 
February 28, 2011, the existing rate schedules L-NT1, L-FPT1, L-
NFPT1, L-AS1, L-AS2, L-AS4, L-AS5, L-AS6 and L-AS7 for LAP 
transmission and ancillary services, excluding L-AS3 for Regulation 
and Frequency Response service.

    Dated: August 12, 2008.

Jeff Kupfer,
Acting Deputy Secretary.

[FR Doc. E8-19161 Filed 8-18-08; 8:45 am]
BILLING CODE 6450-01-P
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