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 Department of Energy Southeastern Power Administration
 AGENCY: Southeastern Power Administration, (Southeastern), Department of Energy.
 ACTION: Notice of Interim Approval.
 SUMMARY: The Deputy Secretary, Department of Energy, confirmed and approved, on an interim basis new rate schedules SOCO-1-D, SOCO-2-D, SOCO-3-D, SOCO-4-D, ALA-1-M, MISS-1-M, Duke-1-D, Duke-2-D, Duke-3-D, Duke-4-D, Santee-1-D, Santee-2-D, Santee-3-D, Santee-4-D, SCE&G-1-D, SCE&G-2-D, SCE&G-3-D, SCE&G-4-D, Pump-1-A, Pump-2, Replacement-1, and Regulation-1. These rate schedules are applicable to Southeastern power sold to existing preference customers in Mississippi, Florida, Georgia, North Carolina, and South Carolina. The rate schedules are approved on an interim basis through September 30, 2015, and are subject to confirmation and approval by the Federal Energy Regulatory Commission (FERC) on a final basis.
 DATES: Approval of rates on an interim basis is effective October 1, 2010.
 FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant Administrator, Finance and Marketing, Southeastern Power Administration, Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-4578, (706) 213-3800.


SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission, by Order issued April 8, 2008, in Docket No. EF07-3011-000 (123 FERC ¶ 62,022), confirmed and approved Wholesale Power Rate Schedules SOCO-1-C, SOCO-2-C, SOCO-3-C, SOCO-4-C, ALA-1-L, MISS-1-L, Duke-1-C, Duke-2-C, Duke-3-C, Duke-4-C, Santee-1-C, Santee-2-C, Santee-3-C, Santee-4-C, SCE&G-1-C, SCE&G-2-C, SCE&G-3-C, SCE&G-4-C, Pump-1-A, Pump-2, Replacement-1, and Regulation-1 through September 30, 2012. This order replaces these rate schedules on an interim basis, subject to final approval by FERC. Dated: September 28, 2010. Daniel B. Poneman, Deputy Secretary.
 DEPARTMENT OF ENERGY DEPUTY SECRETARY In the Matter of: Southeastern Power Administration, Georgia-Alabama-South Carolina System Power Rates Rate Order No. SEPA-53. ORDER CONFIRMING AND APPROVING POWER RATES ON AN INTERIM BASIS Pursuant to Sections 302(a) of the Department of Energy Organization Act, Public Law 95-91, the functions of the Secretary of the Interior and the Federal Power Commission under Section 5 of the Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern Power Administration (Southeastern), were transferred to and vested in the Secretary of Energy. By Delegation Order No. 00-037.00, effective December 6, 2001, the Secretary of Energy delegated to Southeastern's Administrator the authority to develop power and transmission rates, to the Deputy Secretary of Energy the authority to confirm, approve, and place in effect such rates on interim basis, and to the Federal Energy Regulatory Commission (FERC) the authority to confirm, approve, and place into effect on a final basis or to disapprove rates developed by the Administrator under the delegation. This rate is issued by the Deputy Secretary pursuant to that delegation order. Background Power from the Georgia-Alabama-South Carolina Projects is presently sold under Wholesale Power Rate Schedules SOCO-1-C, SOCO-2-C, SOCO-3-C, SOCO-4-C, ALA-1-L, MISS-1-L, Duke-1-C, Duke-2-C, Duke-3-C, Duke-4-C, Santee-1-C, Santee-2-C, Santee-3-C, Santee-4-C, SCE&G-1-C, SCE&G-2-C, SCE&G-3-C, SCE&G-4-C, Pump-1-A, Pump-2, Replacement-1, and Regulation-1. These rate schedules were approved by the FERC in docket number EF07-3011-000 on April 8, 2008, for a period ending September 30, 2012 (123 FERC ¶ 62,022). Public Notice and Comment Notice of proposed rate adjustment was published in the 
                        **Federal Register**
                         March 17, 2010, (75 FR 12740). The notice advised interested parties of a proposed rate increase of about fifteen percent (15%). By notice published in the 
                        **Federal Register**
                         March 24, 2010, (75 FR 14150) a public information and comment forum was scheduled for April 27, 2010, in Atlanta, Georgia. Written comments were accepted on or before June 15, 2010. Comments were received from six parties at the forum. Written comments were received from 12 sources pursuant to this notice. There have been numerous comments about the level of rate increases. We are providing the following table and explanation to try to minimize the confusion about several numbers. [In percent]
Proposed
                                 rate increase 
                                 at forum
Proposed
                                 rate increase nowPercentage Revenue Increase
15
9.6Percentage Rate Increase Generation Rates
20-25
13-15Percentage Revenue Increase Including Disputed Costs
31
23Percentage Rate Increase Generation Rates Including Disputed Costs
40
32-34
 Comment 1 With the current proposed rate increase, customers will need to evaluate whether or not to continue to purchase Southeastern power. Evaluation Southeastern believes that the customers will need to look at each of their respective positions. Their situations vary and Southeastern is not in a position to evaluate whether or not each customer should continue to purchase Federal power. Southeastern has made a cursory study reviewing the average cost of Federal power for each customer. The study shows that some customers at present rates are paying costs that are greater than what the power would cost on the market under average water conditions. The average cost of power for these customers under minimum water conditions (drought conditions) is much higher than what they could purchase at market. Southeastern is unaware of arrangements the customers currently have to purchase the remainder of their needs and is unaware 
                        ( print page 61961)
                        if purchasing power on the market is an option for them. The increase of Southeastern rates by 13%-15% without the Disputed Costs, or 32%-34% with the Disputed Costs, will have a negative impact on these customers. We do not know if the customers will choose to cancel their contracts. Southeastern believes that most of the customers' costs are less than market, even with the 13%-15% increase or the 32%-34% rate increase; therefore, Southeastern will be able to market its power in the foreseeable future. Comment 2 The Interest During Construction costs is inappropriately named and should be called Disputed Costs. Evaluation The customers argue that Interest During Construction (IDC) ends when the project is ready to be placed in service. In the Richard B. Russell (Russell) pump units case, that would be in 1993. Additionally, they argue that the interest expense should begin when the pump units are placed in service. This creates a hiatus where the costs are neither IDC nor expensed interest. In the Russell pump units case, that would be from 1993 to 2002. Southeastern has decided to exclude these costs. The amount of these costs is $223,733,000. The interest on that interest from 2003 to 2009 is $115,466,000 for a total of $339,198,000. Southeastern has decided to call these costs “Disputed Cost,” and agrees that calling them “Interest During Construction” is confusing. Southeastern agrees these costs should be excluded from the proposed rates. Comment 3 The Disputed Costs should be a cost allocated to litigation costs. Evaluation The customers argue that the Corps had a litigation strategy which mishandled the lawsuit. The litigation did result in a long hiatus during which the Russell pump units were operational, but could not be used. While the Corps was ultimately able to prove that there were no adverse environmental consequences of the Russell pump units, the projects have never operated at peak capability, partially because of the hiatus when they were available for operation but were not allowed to operate. The only costs the customers are asking to not be included are the Disputed Costs referred to above. While there is no purpose for litigation costs authorized by Congress in the legislation for the Corps' multiple-purpose projects, Southeastern believes the costs should be allocated by the Corps to the Environmental Purpose (see 5 below). Comment 4 Southeastern has the authority by the Flood Control Act of 1944 to not include the Disputed Costs. It has the authority because of the language “* * * lowest possible rates consistent with sound business principles.” Evaluation The customers argue that the Flood Control Act of 1944 gives Southeastern the authority to examine all the costs and only include those costs that are the lowest possible, consistent with sound business principles. Southeastern agrees that the Flood Control Act of 1944 does give us that authority. Comment 5 The Disputed Costs should be allocated to the Environmental Purpose. Evaluation The customers argue that the Disputed Costs should be allocated to the Environmental Purpose. They point out the entire lawsuit that caused the delays was to determine whether or not the Russell pump units would damage the environment. The Judge's Order of Summary Judgment quotes the Fourth Circuit Court of Appeals: “(p)umped storage poses a major environmental concern because of the risk that while operating in the pumping mode the turbines may `entrain' or kill a large number of fish or fish eggs.” South Carolina Department of Wildlife and Marine Resources vs. Marsh, 886 F.2d at 99. Order, p. 17. It goes on to say, “In order to prevail on its motions, the Corps must show, and this court must find, that these units can be operated at minimum risk to the fish habitat at the Russell Dam.” In addition, the General Accounting Office (GAO) Report to Congressional Requesters, Federal Electricity Activities, cited by the customers, was very concerned that if the Richard Russell Project was not allowed to operate because of the lawsuit, that the Federal government will lose its entire $518 million investment. Southeastern believes it would be proper for the Disputed Costs to be allocated to the Environmental Purpose and not allocated to power. Comment 6 Richard Russell pump units were not authorized by Congress. RA 6120.2 allows that only authorized investments can be included. Evaluation The customers argue that Congress never explicitly authorized the installation of the Richard Russell pump units, and that appropriations bills cannot provide such authorization here. The District Court's ruling granting summary judgment seems to agree to some extent with this interpretation, found no explicit Congressional authorization, but held that Congress was adequately informed, and, by ongoing appropriations actions, the Corps was so authorized. Order, pp. 21-27. Also, the Court stated, “The pumped storage units at the Russell Dam are currently in place. Their installation was authorized by the Fourth Circuit Court of Appeals, which left to the district court the decision of when and if the operation of these units should be granted.” Order, pp. 16-17. The customers also point out that RA 6120.2 includes only “investments that are both authorized and for which appropriations have been made.” They argue and provide strong legal authorities that funding bills do not authorize Corps actions. The customers concluded, “These concerns provide suitable grounds and appropriate legal guidance for SEPA to follow in excluding the IDC expense from the rate proposal.” Southeastern agrees that we have the authority to exclude the costs from the rates. Comment 7 The estimated Corps O&M costs that were used in the proposed rate should be updated for more recent estimates. Evaluation The customers pointed out that Corps projections from 2009 were higher than Corps projections from 2010. Southeastern agrees with the request that more recent estimates be used in the rate filing and the proposed rates now include those reduced projections. The reduction in the rate from 21% at the time of the forum to 13% now is partially because of this change. Comment 8 Revenues for Fiscal Year 2010 have been higher than average and the repayment study should increase the revenues for FY 2010.
                        ( print page 61962) Evaluation Generally, a repayment study is developed with an assumption that average water conditions will prevail through the end of the repayment period. The revenues for Fiscal Year 2010 through May have been 115% of average. The increased revenue of the increase would be approximately $4.8 million. This would increase the estimated revenue for fiscal year 2010 by less than three percent (3%) and have a minor impact on the rate study. It is also difficult to estimate that the revenues would continue to be that high because it is difficult to estimate if this above average rainfall will continue through the end of the fiscal year. Southeastern has not modified the rate proposal for increased revenue in 2010. Comment 9 The unpaid deficit at the end of 2009 should be deferred. Evaluation Southeastern has agreed with this comment in the development of these proposed rates. In the past, Southeastern has deferred the payment of a deficit until the end of cost evaluation period which, in this case, would be FY 2015, or the final year the rates are requested to be approved by the Federal Energy Regulatory Commission. The result of deferring this cost would be to move the pinch point of the repayment. Under the rates proposed at the time of the rate forum, the pinch point is the fiscal year when a sizeable payment is required to be paid. By RA 6120.2, the deficit should be paid prior to that required repayment. RA 6120.2 also allows Southeastern to defer that payment for unusual circumstances. Southeastern has agreed with the customers in the proposed rates. Southeastern feels this deferral is the primary reason the rate increase was reduced from the 21% at the time of the forum to 13% in these proposed rates. Discussion System Repayment An examination of Southeastern's revised system power repayment study, prepared in July 2010, for the Georgia-Alabama-South Carolina System shows that with the proposed rates, all system power costs are paid within the appropriate repayment period required by existing law and DOE Procedure RA 6120.2. The Administrator of Southeastern Power Administration has certified that the rates are consistent with applicable law and that they are the lowest possible rates to customers consistent with sound business principles. Environmental Impact Southeastern has reviewed the possible environmental impacts of the rate adjustment under consideration and has concluded that, because the adjusted rates would not significantly affect the quality of the human environment within the meaning of the National Environmental Policy Act of 1969, the proposed action is not a major Federal action for which preparation of an Environmental Impact Statement is required. Availability of Information Information regarding these rates, including studies and other supporting materials and transcripts of the public information and comment forum, is available for public review in the offices of Southeastern Power Administration, 1166 Athens Tech Road, Elberton, Georgia 30635, and in the Power Marketing Liaison Office, James Forrestal Building, 1000 Independence Avenue, S.W., Washington, DC 20585. Order In view of the foregoing and pursuant to the authority delegated to me by the Secretary of Energy, I hereby confirm and approve on an interim basis, effective October 1, 2010, attached Wholesale Power Rate Schedules SOCO-1-D, SOCO-2-D, SOCO-3-D, SOCO-4-D, ALA-1-M, MISS-1-M, Duke-1-D, Duke-2-D, Duke-3-D, Duke-4-D, Santee-1-D, Santee-2-D, Santee-3-D, Santee-4-D, SCE&G-1-D, SCE&G-2-D, SCE&G-3-D, SCE&G-4-D, Pump-1-A, Pump-2, Replacement-1, and Regulation-1. The Rate Schedules shall remain in effect on an interim basis through September 30, 2015, unless such period is extended or until the FERC confirms and approves the schedules or substitute Rate Schedules on a final basis. Dated: September 28, 2010 Daniel B. Poneman Deputy Secretary Wholesale Power Rate Schedule SOCO-1-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, and Florida to whom power may be transmitted and scheduled pursuant to contracts between the Government and Southern Company Services, Incorporated (hereinafter called the Company) and the Customer. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Company's rate. *Transmission:* $2.74 Per kilowatt of total contract demand per month estimated as of April 2010 is presented for illustrative purposes. The initial transmission charge will be the Customer's ratable share of the transmission and distribution charges paid by the Government. The transmission charges are governed by and subject to refund based upon the determination in proceedings before FERC involving the Company's Open Access Transmission Tariff (OATT). The distribution charges may be modified by FERC pursuant to application by the Company under Section 205 of the Federal Power Act or the Government under Section 206 of the Federal Power Act. Proceedings before FERC involving the OATT or the distribution charges 
                        ( print page 61963)
                        may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Scheduling, System Control and Dispatch Service:* $0.0806 Per kilowatt of total contract demand per month. *Reactive Supply and Voltage Control from Generation Sources Service:* $0.11 Per kilowatt of total contract demand per month. *Regulation and Frequency Response Service:* $0.0483 Per kilowatt of total contract demand per month. Transmission, System Control, Reactive, and Regulation Services The charges for Transmission, System Control, Reactive, and Regulation Services shall be governed by and subject to refund based upon the determination in the proceeding involving Southern Companies' OATT. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company's system. As of April 2010, applicable energy losses are as follows: PercentTransmission facilities
2.2Sub-transmission
2.0Distribution substations
0.9Distribution lines
2.25
 These losses shall be effective until modified by FERC, pursuant to application by Southern Companies under Section 205 of the Federal Power Act or SEPA under Section 206 of the Federal Power Act or otherwise. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule SOCO-2-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, and Florida to whom power may be transmitted pursuant to contracts between the Government and Southern Company Services, Incorporated (hereinafter called the Company) and the Customer. The Customer is responsible for providing a scheduling arrangement with the Government. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Company's rate. *Transmission:* $2.74 Per kilowatt of total contract demand per estimated as of April 2010 is presented for illustrative purposes. The initial transmission charge will be the Customer's ratable share of the transmission and distribution charges paid by the Government. The transmission charges are governed by and subject to refund based upon the determination in proceedings before FERC involving the Company's Open Access Transmission Tariff (OATT). The distribution charges may be modified by FERC pursuant to application by the Company under Section 205 of the Federal Power Act or the Government under Section 206 of the Federal Power Act. Proceedings before FERC involving the OATT or the distribution charges may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Reactive Supply and Voltage Control from Generation Sources Service:* $0.11 Per kilowatt of total contract demand per month. Transmission, System Control, Reactive, and Regulation Services The charges for Transmission, System Control, Reactive, and Regulation Services shall be governed by and subject to refund based upon the determination in the proceeding involving Southern Companies' OATT. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company's system. As of April 2010, applicable energy losses are as follows: PercentTransmission facilities
2.2Sub-Transmission
2.0Distribution substations
0.9Distribution lines
2.25
 These losses shall be effective until modified by FERC, pursuant to application by Southern Companies under Section 205 of the Federal Power Act or SEPA under Section 206 of the Federal Power Act or otherwise.
                        ( print page 61964) *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule SOCO-3-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, and Florida to whom power may be scheduled pursuant to contracts between the Government and Southern Company Services, Incorporated (hereinafter called the Company) and the Customer. The Customer is responsible for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability*: This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects (hereinafter referred to collectively as the Projects) and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service*: The electric capacity and energy supplied hereunder will be delivered at the Projects. *Monthly Rate*: The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge*: $4.19 Per kilowatt of total contract demand per month. *Energy Charge*: 10.67 Mills per kilowatt-hour. *Generation Services*: $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company's rate. *Scheduling, System Control and Dispatch Service*: $0.0806 Per kilowatt of total contract demand per month. *Regulation and Frequency Response Service*: $0.0483 Per kilowatt of total contract demand per month. Transmission, System Control, Reactive, and Regulation Services The charges for Transmission, System Control, Reactive, and Regulation Services shall be governed by and subject to refund based upon the determination in the proceeding involving Southern Companies' Open Access Transmission Tariff. *Contract Demand*: The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government*: The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). *Billing Month*: The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule SOCO-4-D *Availability*: This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, and Florida served through the transmission facilities of Southern Company Services, Inc. (hereinafter called the Company) or the Georgia Integrated Transmission System. The Customer is responsible for providing a scheduling arrangement with the Government and for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability*: This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects (hereinafter referred to collectively as the Projects) and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service*: The electric capacity and energy supplied hereunder will be delivered at the Projects. *Monthly Rate*: The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge*: $4.19 Per kilowatt of total contract demand per month. *Energy Charge*: 10.67 Mills per kilowatt-hour. *Generation Services*: $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company's rate. Transmission, System Control, Reactive, and Regulation Services The charges for Transmission, System Control, Reactive, and Regulation Services shall be governed by and subject to refund based upon the determination in the proceeding involving Southern Companies' Open Access Transmission Tariff. *Contract Demand*: The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government*: The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). *Billing Month*: The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule ALA-1-M *Availability*: This rate schedule shall be available to the PowerSouth Energy Cooperative (hereinafter called the Cooperative). *Applicability*:
                        ( print page 61965) This rate schedule shall be applicable to power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters, and Richard B. Russell Projects and sold under contract between the Cooperative and the Government. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service*: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 Hertz and shall be delivered at the Walter F. George, West Point, and Robert F. Henry Projects. *Monthly Rate*: The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge*: $4.19 Per kilowatt of total contract demand per month. *Energy Charge*: 10.67 Mills per kilowatt-hour. *Generation Services*: $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Southern Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company's rate. Transmission, System Control, Reactive, and Regulation Services The charges for Transmission, System Control, Reactive, and Regulation Services shall be governed by and subject to refund based upon the determination in the proceeding involving Southern Companies' Open Access Transmission Tariff. *Energy to be Furnished by the Government*: The Government will sell to the Cooperative and the Cooperative will purchase from the Government those quantities of energy specified by contract as available to the Cooperative for scheduling on a weekly basis. *Billing Month*: The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule MISS-1-M *Availability*: This rate schedule shall be available to the South Mississippi Electric Power Association (hereinafter called the Customer) to whom power may be wheeled pursuant to contracts between the Government and PowerSouth Energy Cooperative (hereinafter called PowerSouth). *Applicability*: This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service*: The electric capacity and energy supplied hereunder will be three-phase alternating current at a nominal frequency of 60 Hertz delivered at the delivery points of the Customer on PowerSouth's transmission and distribution system. The voltage of delivery will be maintained within the limits established by the state regulatory commission. *Monthly Rate*: The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge*: $4.19 Per kilowatt of total contract demand per month. *Energy Charge*: 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company's rate. *Transmission:* $2.62 Per kilowatt of total contract demand per month as of January 2010 is presented for illustrative purposes. This rate is subject to annual adjustment on January 1, and will be computed subject to the Appendix A attached to the Government-PowerSouth contract. Transmission, System Control, Reactive, and Regulation Services The charges for Transmission, System Control, Reactive, and Regulation Services shall be governed by and subject to refund based upon the determination in the proceeding involving Southern Companies' Open Access Transmission Tariff. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Cooperative and the Cooperative will purchase from the Government those quantities of energy specified by contract as available to the Cooperative for scheduling on a weekly basis. *Billing Month:* The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Duke-1-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina to whom power may be transmitted and scheduled pursuant to contracts between the Government and Duke Energy Company (hereinafter called the Company) and the Customer. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. 
                        ( print page 61966) *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Company's rate. *Transmission:* $0.94 Per kilowatt of total contract demand per month is presented for illustrative purposes. The initial transmission charge will be the Customer's ratable share of the transmission and distribution charges paid by the Government. The transmission charges are governed by and subject to refund based upon the determination in proceedings before FERC involving the Company's Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses of three per cent (3%) as of April 2010). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company's system. These losses shall be effective until modified by FERC, pursuant to application by the Company under Section 205 of the Federal Power Act or SEPA under Section 206 of the Federal Power Act or otherwise. *Billing Month:* The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Duke-2-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina to whom power may be transmitted pursuant to contracts between the Government and Duke Energy Company (hereinafter called the Company) and the Customer. The Customer is responsible for providing a scheduling arrangement with the Government. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Company's rate. *Transmission:* $0.94 Per kilowatt of total contract demand per month is presented for illustrative purposes. The initial transmission charge will be the Customer's ratable share of the transmission and distribution charges paid by the Government. The transmission charges are governed by and subject to refund based upon the determination in proceedings before FERC involving the Company's Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses of three per cent (3%) as of April 2010). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company's system. These losses shall be effective until modified by the Federal Energy Regulatory Commission, pursuant to application by the Company under Section 205 of the Federal Power Act or SEPA under Section 206 of the Federal Power Act or otherwise. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Duke-3-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina to whom power may be scheduled pursuant to contracts between the Government and Duke Energy Company (hereinafter called the Company) and the Customer. The Customer is responsible for providing a transmission arrangement. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability*:
                        ( print page 61967) This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the Savannah River Projects. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company's rate. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Duke-4-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in North Carolina and South Carolina served through the transmission facilities of Duke Energy Company (hereinafter called the Company) and the Customer. The Customer is responsible for providing a scheduling arrangement with the Government and for providing a transmission arrangement with the Company. Nothing in this rate schedule shall preclude modifications to the aforementioned contracts to allow an eligible customer to elect service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the Savannah River Projects. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company' rate. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Santee-1-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter call the Customer) in South Carolina to whom power may be wheeled and scheduled pursuant to contracts between the Government and South Carolina Public Service Authority (hereinafter called the Authority). Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Authority's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Authority. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Authority's rate. *Transmission:* $1.32 Per kilowatt of total contract demand per month as of January 2010 is presented for illustrative purposes. The initial transmission rate is subject to annual adjustment on July 1 of each 
                        ( print page 61968)
                        year, and will be computed subject to the formula contained in Appendix A to the Government-Authority Contract. Proceedings before FERC involving the Authority's Open Access Transmission Tariff may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Authority (less applicable losses of two per cent (2%) as of April 2010). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Authority's system. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. *Service Interruption:* When energy delivery to the Customer's system for the account of the Government is reduced or interrupted, and such reduction or interruption is not due to conditions on the Customer's system, the demand charge for the month shall be appropriately reduced as to kilowatts of such capacity which have been interrupted or reduced for each day in accordance with the following formula:  Wholesale Power Rate Schedule Santee-2-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in South Carolina to whom power may be wheeled pursuant to contracts between the Government and South Carolina Public Service Authority (hereinafter called the Authority). The customer is responsible for providing a scheduling arrangement with the Government. Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Authority's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Authority. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Authority's rate. *Transmission:* $1.32 Per kilowatt of total contract demand per month as of January 2010 is presented for illustrative purposes. The initial transmission rate is subject to annual adjustment on July 1 of each year, and will be computed subject to the formula contained in Appendix A to the Government-Authority Contract. Proceedings before FERC involving the Authority's Open Access Transmission Tariff may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Authority (less applicable losses of two percent (2%) as of April 2010). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Authority's system. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. *Service Interruption:* When energy delivery to the Customer's system for the account of the Government is reduced or interrupted, and such reduction or interruption is not due to conditions on the Customer's system, the demand charge for the month shall be appropriately reduced as to kilowatts of such capacity which have been interrupted or reduced for each day in accordance with the following formula: 
 
  Wholesale Power Rate Schedule Santee-3-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in South Carolina to whom power may be scheduled pursuant to contracts between the Government and South Carolina Public Service Authority (hereinafter called the Authority). The customer is responsible for providing a transmission arrangement. Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the Projects. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Authority. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Authority's rate. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Authority (less applicable losses). *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. *Service Interruption:* When energy delivery to the Customer's system for the account of the Government is reduced or interrupted, and such reduction or interruption is not due to conditions on the Customer's system, the demand charge for the month shall be appropriately reduced as to kilowatts of such capacity which have been interrupted or reduced for each day in accordance with the following formula:  Wholesale Power Rate Schedule Santee-4-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter call the Customer) in South Carolina served through the transmission facilities of South Carolina Public Service Authority (hereinafter called the Authority). The customer is responsible for providing a scheduling arrangement with the Government and for providing a transmission arrangement. Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the Projects. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Authority. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Authority's rate. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy 
                        ( print page 61970)
                        each billing month equivalent to a percentage specified by contract of the energy made available to the Authority (less applicable losses). *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. *Service Interruption:* When energy delivery to the Customer's system for the account of the Government is reduced or interrupted, and such reduction or interruption is not due to conditions on the Customer's system, the demand charge for the month shall be appropriately reduced as to kilowatts of such capacity which have been interrupted or reduced for each day in accordance with the following formula:  Wholesale Power Rate Schedule SCE&G-1-D *Availability:* This rate schedule shall be available public bodies and cooperatives (any one of which is hereinafter called the Customer) in South Carolina to whom power may be wheeled and scheduled pursuant to contracts between the Government and the South Carolina Electric & Gas Company (hereinafter called the Company). Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Company's rate. *Transmission:* $1.02 Per kilowatt of total contract demand per month as of February 2010 is presented for illustrative purposes. The initial transmission charge will be the Customer's ratable share of the transmission and distribution charges paid by the Government. The transmission charges are governed by and subject to refund based upon the determination in proceedings before FERC involving the Company's Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company's system. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. *Conditions of Service:* The Customer shall at its own expense provide, install, and maintain on its side of each delivery point the equipment necessary to protect and control its own system. In so doing, the installation, adjustment, and setting of all such control and protective equipment at or near the point of delivery shall be coordinated with that which is installed by and at the expense of the Company on its side of the delivery point. Wholesale Power Rate Schedule SCE&G-2-D *Availability:* This rate schedule shall be available public bodies and cooperatives (any one of which is hereinafter called the Customer) in South Carolina to whom power may be wheeled pursuant to contracts between the Government and the South Carolina Electric & Gas Company (hereinafter called the Company). The customer is responsible for providing a scheduling arrangement with the Government. Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the delivery points of the Customer on the Company's transmission and distribution system. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be:
                        ( print page 61971) *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission (FERC) of the Company's rate. *Transmission:* $1.02 Per kilowatt of total contract demand per month as of February 2010 is presented for illustrative purposes. The initial transmission charge will be the Customer's ratable share of the transmission and distribution charges paid by the Government. The transmission charges are governed by and subject to refund based upon the determination in proceedings before FERC involving the Company's Open Access Transmission Tariff (OATT). Proceedings before FERC involving the OATT may result in the separation of charges currently included in the transmission rate. In this event, the Government may charge the Customer for any and all separate transmission and distribution charges paid by the Government in behalf of the Customer. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Company's system. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. *Conditions of Service:* The Customer shall at its own expense provide, install, and maintain on its side of each delivery point the equipment necessary to protect and control its own system. In so doing, the installation, adjustment, and setting of all such control and protective equipment at or near the point of delivery shall be coordinated with that which is installed by and at the expense of the Company on its side of the delivery point. Wholesale Power Rate Schedule SCE&G-3-D *Availability:* This rate schedule shall be available public bodies and cooperatives (any one of which is hereinafter called the Customer) in South Carolina to whom power may be scheduled pursuant to contracts between the Government and the South Carolina Electric & Gas Company (hereinafter called the Company). The customer is responsible for providing a transmission arrangement. Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the Projects. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company's rate. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). *Billing Month:* The billing month for power sold under this schedule shall end at 12 midnight on the last day of each calendar month. *Conditions of Service:* The Customer shall at its own expense provide, install, and maintain on its side of each delivery point the equipment necessary to protect and control its own system. In so doing, the installation, adjustment, and setting of all such control and protective equipment at or near the point of delivery shall be coordinated with that which is installed by and at the expense of the Company on its side of the delivery point. Wholesale Power Rate Schedule SCE&G-4-D *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of which is hereinafter called the Customer) in South Carolina served through the transmission facilities of South Carolina Electric & Gas Company (hereinafter called the Company). The customer is responsible for providing a scheduling arrangement with the Government and for providing a transmission arrangement. Nothing in this rate schedule shall preclude an eligible customer from electing service under another rate schedule. *Applicability:* This rate schedule shall be applicable to the sale at wholesale of power and accompanying energy generated at the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This rate schedule does not apply to energy from pumping operations at the Carters and Richard B. Russell Projects. *Character of Service:* The electric capacity and energy supplied hereunder will be delivered at the Projects. *Monthly Rate:* The monthly rate for capacity, energy, and generation services provided under 
                        ( print page 61972)
                        this rate schedule for the period specified shall be: *Capacity Charge:* $4.19 Per kilowatt of total contract demand per month. *Energy Charge:* 10.67 Mills per kilowatt-hour. *Generation Services:* $0.12 Per kilowatt of total contract demand per month. Additional rates for Transmission, System Control, Reactive, and Regulation Services provided under this rate schedule shall be the rates charged Southeastern Power Administration by the Company. Future adjustments to these rates will become effective upon acceptance for filing by the Federal Energy Regulatory Commission of the Company's rate. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract that the Government is obligated to supply and the Customer is entitled to receive. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the company (less applicable losses). *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. *Conditions of Service:* The Customer shall at its own expense provide, install, and maintain on its side of each delivery point the equipment necessary to protect and control its own system. In so doing, the installation, adjustment, and setting of all such control and protective equipment at or near the point of delivery shall be coordinated with that which is installed by and at the expense of the Company on its side of the delivery point. Wholesale Power Rate Schedule Pump-1-A *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, Florida, South Carolina, or North Carolina to whom power is provided pursuant to contracts between the Government and the customer. *Applicability:* This rate schedule shall be applicable to the sale at wholesale energy generated from pumping operations at the Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. The energy will be segregated from energy from other pumping operations. *Character of Service:* The energy supplied hereunder will be delivered at the delivery points provided for under appropriate contracts between the Government and the Customer. *Monthly Rate:* The rate for energy sold under this rate schedule for the months specified shall be:  [computed to the nearest $.00001 (1/100 mill) per kWh] (The weighted average cost of energy for pumping divided by the energy conversion factor, quantity divided by one minus losses for delivery.) Where:  (The weighted average cost of energy for pumping for this rate schedule is equal to the cost of energy purchased or supplied for the benefit of the customer for pumping divided by the total energy for pumping.)  (Cost of energy for pumping for this rate schedule is equal to the cost of energy purchased or supplied for the benefit of the customer plus the cost of energy in storage carried over from the month preceding the specified month.)  (Energy for pumping for this rate schedule is equal to the energy purchased or supplied for the benefit of the customer, after losses, plus the energy for pumping in storage as of the end of the month preceding the specified month.)  (Cost of energy in storage is equal to the weighted average cost of energy for pumping for the month preceding the specified month times the energy for pumping in storage at the end of the month preceding the specified month.)  = Dollars cost of energy purchased or supplied for the benefit of the customer for pumping during the specified month, including all direct costs to deliver energy to the project.  = Kilowatt-hours of energy purchased or supplied for the benefit of the customer for  pumping during the specified month. = Energy loss factor for transmission on energy purchased or supplied for the benefit of the customer for pumping (Expected to be .03 or three percent.)  = Kilowatt-hours of energy in storage as of the end of the month immediately preceding the specified month.  = Weighted average cost of energy for pumping for the month immediately preceding the specified month.  (Weighted average energy conversion factor is equal to the energy generated from pumping divided by the total energy for pumping)  = Energy generated from pumping.  = Weighted average energy loss factor on energy delivered by the facilitator to the customer. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Facilitator (less any losses required by the Facilitator). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Facilitator's system. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Pump-2 *Availability:* This rate schedule shall be available to public bodies and cooperatives who provide their own scheduling arrangement and elect to allow Southeastern to use a portion of their allocation for pumping (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, Florida, South Carolina, or 
                        ( print page 61973)
                        North Carolina to whom power is provided pursuant to contracts between the Government and the customer. *Applicability:* This rate schedule shall be applicable to the sale at wholesale energy generated from pumping operations at the Carters and Richard B. Russell Projects and sold under appropriate contracts between the Government and the Customer. This energy will be segregated from energy from other pumping operations. *Character of Service:* The energy supplied hereunder will be delivered at the delivery points provided for under appropriate contracts between the Government and the Customer. *Monthly Rate:* The rate for energy sold under this rate schedule for the months specified shall be:  [computed to the nearest $.00001 (1/100 mill) per kWh] (The weighted average cost of energy for pumping divided by the energy conversion factor, quantity divided by one minus losses for delivery.) Where:  (The weighted average cost of energy for pumping for this rate schedule is equal to the cost of energy purchased or supplied for the benefit of the customer for pumping divided by the total energy for pumping.)  (Cost of energy for pumping for this rate schedule is equal to the cost of energy purchased or supplied for the benefit of the customer plus the cost of energy in storage carried over from the month preceding the specified month.)  (Energy for pumping for this rate schedule is equal to the energy purchased or supplied for the benefit of the customer, after losses, plus the energy for pumping in storage as of the end of the month preceding the specified month.)  (Cost of energy in storage is equal to the weighted average cost of energy for pumping for the month preceding the specified month times the energy for pumping in storage at the end of the month preceding the specified month.)  = Dollars cost of energy purchased or supplied for the benefit of the customer for pumping during the specified month, including all direct costs to deliver energy to the project.  = Kilowatt-hours of energy purchased or supplied for the benefit of the customer for pumping during the specified month.  = Energy loss factor for transmission on energy purchased or supplied for the benefit of the customer for pumping (Expected to be .03 or three percent.)  = Kilowatt-hours of energy in storage as of the end of the month immediately preceding the specified month.  = Weighted average cost of energy for pumping for the month immediately preceding the specified month.  (Weighted average energy conversion factor is equal to the energy generated from pumping divided by the total energy for pumping)  = Energy generated from pumping.  = Weighted average energy loss factor on energy delivered by the facilitator to the customer. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Facilitator (less any losses required by the Facilitator). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Facilitator's system. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Power Rate Schedule Replacement-1 *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, Florida, South Carolina, or North Carolina to whom power is provided pursuant to contracts between the Government and the customer. *Applicability:* This rate schedule shall be applicable to the sale at wholesale energy purchased to meet contract minimum energy and sold under appropriate contracts between the Government and the Customer. *Character of Service:* The energy supplied hereunder will be delivered at the delivery points provided for under appropriate contracts between the Government and the Customer. *Monthly Rate:* The rate for energy sold under this rate schedule for the months specified shall be:  [computed to the nearest $.00001 (1/100 mill) per kWh] (The weighted average cost of energy for replacement energy divided by one minus losses for delivery.) Where:  (The weighted average cost of energy for replacement energy is equal to the cost of replacement energy purchased divided by the replacement energy purchased, net losses.)  = Dollars cost of energy purchased for replacement energy during the specified month, including all direct costs to deliver energy to the project.  = Kilowatt-hours of energy purchased for replacement energy during the specified month.  = Energy loss factor for transmission on replacement energy purchased (Expected to be 0 or zero percent.)  = Weighted average energy loss factor on energy delivered by the facilitator to the customer. *Energy to be Furnished by the Government:* The Government will sell to the Customer and the Customer will purchase from the Government energy each billing month equivalent to a percentage specified by contract of the energy made available to the Facilitator 
                        ( print page 61974)
                        (less any losses required by the Facilitator). The Customer's contract demand and accompanying energy will be allocated proportionately to its individual delivery points served from the Facilitator's system. *Billing Month:* The billing month for power sold under this schedule shall end at 12:00 midnight on the last day of each calendar month. Wholesale Rate Schedule Regulation-1 *Availability:* This rate schedule shall be available to public bodies and cooperatives (any one of whom is hereinafter called the Customer) in Georgia, Alabama, Mississippi, Florida, South Carolina, or North Carolina to whom service is provided pursuant to contracts between the government and the customer. *Applicability:* This rate schedule shall be applicable to the sale of regulation services provided from the Allatoona, Buford, J. Strom Thurmond, Walter F. George, Hartwell, Millers Ferry, West Point, Robert F. Henry, Carters, and Richard B. Russell Projects (hereinafter called the Projects) and sold under appropriate contracts between the Government and the Customer. *Character of Service:* The service supplied hereunder will be delivered at the Projects. *Monthly Rate:* The rate for service supplied under this rate schedule for the period specified shall be: $0.05 per kilowatt of total contract demand per month. *Contract Demand:* The contract demand is the amount of capacity in kilowatts stated in the contract to which the Government is obligated to supply and the Customer is entitled to receive regulation service. *Billing Month:* The billing month for services provided under this schedule shall end at 12:00 midnight on the last day of each calendar month.


[FR Doc. 2010-25118 Filed 10-5-10; 8:45 am] BILLING CODE P