[Federal Register Volume 61, Number 30 (Tuesday, February 13, 1996)]
[Notices]
[Pages 5540-5542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3189]
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DEPARTMENT OF ENERGY
Bonneville Power Administration
Requested Transmission Rate Adjustment Under Northwest Regional
Transmission Association Agreement, Public Hearing, and Opportunities
for Public Review and Comment
AGENCY: Bonneville Power Administration (BPA), DOE.
ACTION: Notice of special arbitration proceeding under section 7(i) of
the Pacific Northwest Electric Power Planning and Conservation Act, 16
U.S.C. 839e(i) and Section 12.5 of the
[[Page 5541]]
Northwest Regional Transmission Association Governing Agreement.
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SUMMARY: BPA File No: NRTA-BPA-1. BPA requests that all comments and
documents intended to become part of the Official Record in this
process contain the file number designation NRTA-BPA-1.
BPA and the British Columbia Power Exchange Corporation (Powerex)
are signatories to the Northwest Regional Transmission Association
(NRTA) Governing Agreement (Agreement). The NRTA is intended to
facilitate the efficient use of existing transmission facilities,
coordinate the planning of transmission system expansions, and expedite
the resolution of disputes concerning transmission. Members of the
Association may obtain arbitration of transmission disputes, including
disputes over transmission access and rates.
This proceeding is undertaken pursuant to section 12.5 of the NRTA
Governing Agreement to determine a BPA Rate Issue Dispute between the
parties. Section 12.5 provides for an expedited BPA rate proceeding
pursuant to section 7(i) of the Northwest Power Act and the additional
procedures set forth in Section 12.5 of the Agreement when a Rate Issue
Dispute arises in an NRTA dispute resolution between BPA, as the
transmission provider, and another NRTA member. The proceeding shall
determine the issue in dispute unless (1) BPA has previously initiated
a hearing under section 7(i) which includes the issue in dispute and
(2) the arbitrator finds on the basis of standards in the Governing
Agreement that the Rate Issue Dispute should be resolved in the
previously-initiated rate proceeding. Because Powerex has raised
similar issues in the current BPA 1996 transmission rate case, the
Hearing Officer will first determine the appropriateness of initiating
an additional proceeding.
DATES: Persons wishing to become a formal ``party'' or a
``participant'' to the proceeding must notify the Hearing Officer in
writing of their intention to do so in accordance with requirements
stated in this Notice. See also Procedures Governing Bonneville Power
Administration Rate Hearings, 51 FR 7611 (March 5, 1986), which the
Hearing Officer may adopt for this proceeding. Petitions to intervene
must be received by close of business February 21, 1996, and should be
addressed as follows:
Michael C. Dotten, Hearing Officer, Heller, Ehrman, White & McAuliffe,
200 S.W. Market, Suite 1750, Portland, Oregon 97201, (503) 227-7400
In addition, a copy of the petition must be served concurrently on
BPA's Office of Legal Services and on counsel for Powerex:
Janet L. Prewitt--LQ, Stephen Larson--LN, Office of Legal Services,
Bonneville Power Administration, Box 3621, Portland, Oregon 97208-97212
Paul W. Fox, Bracewell & Patterson, L.L.P., 100 Congress Ave, Suite
1900, Austin, Texas 78701-4052
Admission to the proceeding as an intervenor party or as a
participant will be determined by the Hearing Officer. Parties seeking
to intervene with ``party'' status should so specify; parties seeking
only ``participant'' status should so specify. A ``participant'' is
person who submits written or oral recommendations for the record but
is not a party. Intervention in this proceeding will be subject to the
dispute resolution provisions of Section 12 of the Governing Agreement.
Briefs on Issue Number 1 and Issue Number 2 of the Disputing
Parties' Agreed Statement of the Issues (below) (``the threshold
procedural issues'') must be filed with the Hearing Officer by close of
business February 21, 1996. A prehearing conference will be held before
the Hearing Officer at 9 a.m. on February 28, 1996, in the Auditorium,
911 N.E. 11th Street, Portland, Oregon. Registration for the prehearing
conference will begin at 8:30 a.m. The Hearing Officer will act on all
intervention petitions and oppositions to intervention petitions, rule
on the threshold procedural issues, rule on any motions and, if
necessary, establish procedures to govern this proceeding, establish a
service list, establish a procedural schedule, and consolidate parties
with similar interests for purposes of filing jointly sponsored
testimony and briefs, and for expediting any necessary cross-
examination. A notice of the dates and times of any additional hearings
will be mailed to all parties of record. Objections to orders made by
the Hearing Officer at the prehearing conference must be made in person
or through a representative at the prehearing conference.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Hansen, Public Involvement
and Information Specialist-CK, P.O. Box 12999, Portland, OR 97212,
(503) 230-4328 or call toll-free 1-800-622-4519.
SUPPLEMENTARY INFORMATION: Powerex's Request is made under the NRTA
Agreement. Powerex in its Request seeks firm and nonfirm Point-to-Point
Transmission Service over the Northern Intertie and the Network at a
single rolled-in-rate. Powerex also seeks nondiscriminatory discounting
of such rate, and to treat the points of interconnection between the
FCRTS and the BC Hydro system on the United States-Canada border near
Blaine, Washington and Nelway, British Columbia as Points of
Integration and Points of Delivery for the Network. BPA has denied
Powerex's Request and Powerex has initiated this NRTA dispute
resolution proceeding.
In the previously initiated 1996 BPA transmission rate proceeding,
BPA has proposed to continue separately identifying a rate for the
Northern Intertie segment. Powerex has opposed this rate and has argued
that the Northern Intertie facilities should no longer be treated by
BPA as a separate segment. Consequently, the parties have agreed to
first obtain the Hearing Officer's determination of the threshold
procedural issues, i.e., whether pursuant to the criteria described in
the Agreement, the substantive issues in dispute should be addressed in
this proceeding or in the previously-initiated rate proceeding. The
criteria for addressing the substantive issues in the arbitration
proceeding explained in the ``Disputing Parties' Agreed Statement of
the Issues.''
Disputing Parties' Agreed Statement of the Issues
BPA and Powerex are members of the Northwest Regional Transmission
Association. BPA and Powerex jointly agree that the following issues
(``BPA Rate Issue Dispute'') arising from Powerex's September 27, 1995,
request to BPA for transmission service (``Request'') shall be resolved
by arbitration pursuant to Section 12 of the NRTA Governing Agreement:
Issue Number 1
Whether, under Subsection 12.5.1 of the NRTA Governing Agreement,
resolution of this BPA Rate Issue Dispute in a separate proceeding
under Subsection 7(i) of the Pacific Northwest Electric Power Planning
and Conservation Act (``Northwest Power Act'') would frustrate or
unnecessarily avoid the ongoing proceedings in BPA Docket WP-96/TR-96.
Issue Number 2
Whether, under Subsection 12.5.1 of the NRTA Governing Agreement,
resolution of this BPA Rate Issue Dispute in the ongoing proceedings in
BPA Docket WP-96/TR-96 would not materially frustrate Powerex's need
for an expeditious decision regarding its Request.
[[Page 5542]]
Issue Number 3
Whether Powerex's Request is a ``good faith transmission request''
within the meaning of Subsection 10.4.1 of the NRTA Governing
Agreement, the currently applicable standards and policies of the
Federal Energy Regulatory Commission (FERC) regarding such requests and
Section 213 of the Federal Power Act (FPA).
Issue Number 4
Whether the NRTA Governing Agreement, Subsection 212(i)(1)(ii) of
the FPA and FERC's currently applicable standards and policies, require
BPA to render firm and non-firm point-to-point service to Powerex over
BPA's Northern Intertie and Network facilities, effective October 1,
1996, at rates under the PTP-96, RNF-96 and ET-96 and successor rate
schedules that:
A. Reflect the roll-in of the costs of the Northern Intertie to
Network revenue requirements;
B. Treat the points of interconnection between the Federal Columbia
River Transmission System and the British Columbia Hydro and Power
Authority System on the United States-Canada border near Blaine,
Washington and Nelway, British Columbia as Points of Integration and
Points of Delivery for the Network; and
C. Are subject to the Short Distance Discount for firm service and
to nondiscriminatory discounting for nonfirm service.
Bonneville and Powerex have agreed on a qualified arbitrator who
will also serve as the Hearing Officer (Hearing Officer) in the Special
Proceeding to resolve such issues. Bonneville and Powerex agree to the
Arbitrator deciding Issue Number 1 and Issue Number 2 at the initial
prehearing conference to be scheduled in the Federal Register notice
prescribed by Subsection 12.5.3.ii of the NRTA Governing Agreement
(this Notice). Bonneville and Powerex further agree:
1. If the Hearing Officer at such prehearing conference makes
affirmative findings with respect to both Issue Number 1 and Issue
Number 2, the Hearing Officer shall also determine the procedural
effect of the ruling, including but not limited to:
(a) Suspension of further arbitration procedures with respect to
Issue Number 3 and Issue Number 4 until after the Administrator issues
his decision in WP-96/TR-96; or
(b) Termination of this arbitration, without prejudice to Powerex
pursuing such other and further rights as may be available to it under
the NRTA governing agreement, and
2. That if the Arbitrator at such prehearing conference fails to
make affirmative findings with respect to both Issue Number 1 and Issue
Number 2, then the Arbitrator shall establish a procedural schedule for
a separate proceeding under Subsection 7(i) of the Northwest Power Act
to resolve Issue Number 3 and Issue Number 4.
BPA and Powerex agree that the remaining issues arising from
Powerex's Request shall not be subject to arbitration at this time,
without prejudice to Powerex seeking at a later date to invoke the
dispute resolution provisions of the NRTA governing Agreement in the
event:
1. Ongoing discussions between Bonneville and Powerex do not result
in a satisfactory mutual agreement regarding available transmission
capacity on the Northern Intertie; or
2. The transmission service issues raised by Powerex in the Request
are not resolved to Powerex's satisfaction in BPA Docket TC-96.
If the Hearing Officer determines that the proceeding shall address
the substantive issues, the relevant documents and testimony from WP/
TR-96 will be identified and made available to all parties to the
proceeding.
Issued in Portland, Oregon, on February 7, 1996.
Sue F. Hickey,
Chief Operating Officer.
[FR Doc. 96-3189 Filed 2-12-96; 8:45 am]
BILLING CODE 6450-01-P
