[Federal Register Volume 64, Number 90 (Tuesday, May 11, 1999)]
[Notices]
[Pages 25323-25334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11864]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Desert Southwest Customer Service Region Network Integration
Transmission and Ancillary Services--Rate Order No. WAPA-84
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Rate Order.
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SUMMARY: Notice is given of the confirmation and approval by the
Secretary of the Department of Energy (DOE) of Rate Order No. WAPA-84
and Rate Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-
SUR1, PD-NTS1, and INT-NTS1 placing into effect provisional formula
rates for the Desert Southwest Customer Service Region (DSW) network
integration transmission services (NTS) for Parker-Davis Project (P-DP)
and Pacific Northwest-Pacific Southwest Intertie Project (Intertie) and
ancillary services for the Western Area Lower Colorado (WALC) control
area. The provisional formula rates will remain in effect on an interim
basis until the Federal Energy Regulatory Commission (FERC) confirms,
approves, and places them into effect on a final basis.
DATES: The formula rates will be placed into effect from April 1, 1999,
through March 31, 2004.
FOR FURTHER INFORMATION CONTACT: Mr. Maher A. Nasir, Rates Team Lead,
telephone (602) 352-2768, or Mr. Tyler Carlson, Regional Manager,
telephone (602) 352-2453, Desert Southwest Customer Service Region,
Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-
6457.
SUPPLEMENTARY INFORMATION: On December 7, 1998, the Administrator of
Western Area Power Administration (Western) approved formula rate
methodologies for short-term sales of NTS and ancillary services in the
Western Area Lower Colorado (WALC) control area of the Desert Southwest
Region. The six ancillary services include: scheduling, system control,
and dispatch service; reactive supply and voltage control service;
regulation and frequency response service; energy imbalance service;
spinning reserve service, and supplemental reserve service. The
provisional formula rates will replace the formula rates for short-term
sales.
Provisional Rate Formula for Network Integration Transmission
Service
NTS will be separately provided from P-DP and Intertie. The charge
for NTS is the product of the transmission customer's load-ratio share
times one-twelfth of the annual transmission revenue requirement. The
customer's load-ratio share is calculated on a rolling 12-month basis
(12-CP). The customer's load-ratio share is equal to the network
transmission customer's hourly load coincident with Western's
corresponding transmission system's monthly peak divided by the
resultant value of the corresponding transmission system's monthly peak
minus the coincident peak for all corresponding firm point-to-point
transmission service plus corresponding firm point-to-point
reservations.
Provisional Rates for Ancillary Services
Six ancillary services will be offered by DSW for WALC, two of
which are required to be purchased by the transmission customer. These
two are: (1) scheduling, system control, and dispatch service and (2)
reactive supply and voltage control service. The remaining four
ancillary services (3) regulation and frequency response service; (4)
energy imbalance service; (5) spinning reserve service; and (6)
supplemental reserve service will be offered, but are subject to
availability from DSW generation resources. If DSW is unable to provide
these services from its own resources, it will provide the services by
making market purchases and passing these costs directly to the
customer plus a 10 percent administrative charge.
Scheduling, system control, and dispatch service costs are included
in transmission service provided by DSW. The scheduling, system
control, and dispatch formula rates apply only to non-transmission
customers, and depending on the type of service, will vary between
$34.10 and $56.20 per schedule per day.
[[Page 25324]]
Reactive supply and voltage control ancillary service is calculated
by dividing the combined revenue requirement for the service by the sum
of control area average firm power allocation, network transmission 12-
CP and firm transmission reservations, yielding a rate of $0.07/
kWmonth.
Regulation and frequency response service is not available on a
long-term basis from DSW. If available for short-term sales, the price
will be equal to the firm-capacity rate of the specific power project
supplying the service.
An energy imbalance account will be maintained for each customer
scheduling energy in the WALC control area at no charge. DSW reserves
the right to assess a penalty applied against deviations outside a 3
percent bandwidth (1.5 percent deviations), with a 2 MW
deviation minimum. A penalty charge of 100 mills/kWh may be assessed
for under-deliveries (negative excursion) greater than 1.5 percent and
occurring more than five times per month. Over-deliveries (positive
excursion) will be credited to the customer for 50 percent of the
market value of the over-delivery within 30 days, provided the over-
deliveries do not impinge upon DSW operations.
No reserves of either spinning or supplemental are available from
DSW resources.
The formula rates for DSW NTS and ancillary services are developed
pursuant to the Department of Energy Organization Act (42 U.S.C. 7101
et seq.), through which the power marketing functions of the Secretary
of the Interior and the Bureau of Reclamation under the Reclamation Act
of 1902 (43 U.S.C. 371 et seq.), as amended and supplemented by
subsequent enactments, particularly section 9(c) of the Reclamation
Project Act of 1939 (43 U.S.C. 485h(c)), and other acts specifically
applicable to the project involved, were transferred to and vested in
the Secretary of Energy.
By Amendment No. 3 to Delegation Order No. 0204-108, published
November 10, 1993 (58 FR 59716), the Secretary of Energy delegated (1)
the authority to develop long-term power and transmission rates on a
nonexclusive basis to the Administrator of Western; (2) the authority
to confirm, approve, and place such rates into effect on an interim
basis to the Deputy Secretary of Energy; and (3) the authority to
confirm, approve, and place into effect on a final basis, to remand, or
to disapprove such rates to FERC. By subsequent Order effective April
15, 1999, the Secretary rescinded all delegations of authority to the
Deputy Secretary, whether contained in Delegation Orders, Departmental
Directives, or elsewhere, concerning the Department's Power Marketing
Administrations, including, but not limited to, authority delegated or
affirmed in Delegation Order No. 204-108, as amended.
Rate Order No. WAPA-84 was prepared pursuant to Delegation Order
No. 0204-108, the Secretarial Order rescinding delegations to the
Deputy Secretary concerning the Power Marketing Administrations
effective April 15, 1999, existing DOE procedures for public
participation in power rate adjustments in 10 CFR part 903, and
procedures for approving power marketing administration rates by FERC
in 18 CFR part 300. Rate Order No. WAPA-84, confirming, approving, and
placing the provisional formula rates for DSW NTS and ancillary
services into effect on an interim basis, is issued, and the new Rate
Schedules DSW-SD1, DSW-RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1, PD-
NTS1, and INT-NTS1 will be submitted promptly to FERC for confirmation
and approval on a final basis.
Dated: April 29, 1999.
Bill Richardson,
Secretary.
Order Confirming, Approving, and Placing the Desert Southwest
Customer Service Region Network Integration Transmission and
Ancillary Services Formula Rates Into Effect on an Interim Basis
April 1, 1999.
The Desert Southwest Customer Service Region (DSW) network
integration transmission services (NTS) and ancillary services formula
rates are developed pursuant to the Department of Energy (DOE)
Organization Act (42 U.S.C. 7101 et seq.), through which the power
marketing functions of the Secretary of the Interior and the Bureau of
Reclamation under the Reclamation Act of 1902 (43 U.S.C. 371 et seq.),
as amended and supplemented by subsequent enactments, particularly
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C.
485h(c)), and other acts specifically applicable to the project
involved, were transferred to and vested in the Secretary of Energy
(Secretary).
By Amendment No. 3 to Delegation Order No. 0204-108, published
November 10, 1993 (58 FR 59716), the Secretary delegated (1) the
authority to develop long-term power and transmission rates on a
nonexclusive basis to the Administrator of the Western Area Power
Administration (Western); (2) the authority to confirm, approve, and
place such rates into effect on an interim basis to the Deputy
Secretary of Energy; and (3) the authority to confirm, approve, and
place into effect on a final basis, to remand, or to disapprove such
rates to the Federal Energy Regulatory Commission (FERC). By subsequent
Order effective April 15, 1999, the Secretary rescinded all delegations
of authority to the Deputy Secretary, whether contained in Delegation
Orders, Departmental Directives, or elsewhere, concerning the
Department's Power Marketing Administrations, including, but not
limited to, authority delegated or affirmed in Delegation Order No.
0204-108, as amended. Existing DOE procedures for public participation
in power rate adjustments are found at 10 CFR part 903. Procedures for
approving power marketing administration rates by FERC are found at 18
CFR part 300.
Acronyms and Definitions
As used in this rate order, the following acronyms and definitions
apply:
access: The contracted right to use an electrical system to
transfer electrical energy.
ancillary services: Those services necessary to support the
transmission of capacity and energy from resources to loads while
maintaining reliable operation of the transmission provider's
transmission system in accordance with FERC Order Nos. 888 and 889
and Western's Tariff.
Basin Fund: Upper Colorado River Basin Fund, established as part
of Colorado River Storage Project Act of April 11, 1956, for
defraying the costs of operation, maintenance, and replacement of
and emergency expenditures for all facilities of the CRSP.
BCP: Boulder Canyon Project.
capacity: The rated continuous load-carrying ability, expressed
in megawatts (MW) or megavolt-amperes (MVA), of generation,
transmission, or other electrical equipment.
control area: An electric system or systems, bounded by
interconnections metering and telemetry, capable of controlling
generation to maintain its interchange schedule with other control
areas and contributing to frequency regulation of the
interconnection.
CRSP: Colorado River Storage Project (includes Seedskadee and
Dolores Projects).
CRSP CSC: Western's Colorado River Storage Project Customer
Service Center, in Salt Lake City, Utah.
customer: Any entity which receives transmission, or ancillary
services under this rate order.
DOE: United States Department of Energy.
demand: The rate at which electric energy is delivered to or by
a system or part of a system, generally expressed in kilowatts or
megawatts, at a given instant or average over any designated
interval of time.
DSW: Desert Southwest Customer Service Region.
[[Page 25325]]
energy imbalance service: Is provided when a difference occurs
between the scheduled and actual delivery of energy to a load or
from a generation resource within a control area over a single
month.
FERC: Federal Energy Regulatory Commission.
firm point-to-point transmission service: Transmission service
that is reserved between points of receipt and delivery.
FRN: Federal Register notice.
FY: Fiscal Year.
Glen Canyon: One of the storage units of the CRSP.
Intertie: Pacific Northwest-Pacific Southwest Intertie Project.
kW: Kilowatt; 1,000 watts.
kWh: Kilowatt-hour; the common unit of electrical energy, equal
to a kW taken for a period of 1 hour.
kWmonth: Kilowatt-month; the common unit of electrical energy,
equal to a kW taken for a period of 1 month.
kWyear: Kilowatt-year; the common unit of electrical energy,
equal to a kW taken for a period of 1 year.
load: An end-use device or customer that receives power from
the electric system.
load-ratio share: Ratio of a transmission customer's network
load to the transmission provider's system peak load calculated on a
rolling twelve-month basis.
mill: Unit of monetary value equal to .001 of a U.S. dollar;
i.e., 1/10th of a cent.
mills/kWh: Mills per kilowatt-hour.
MW: Megawatt; equal to 1,000 kW or 1,000,000 watts.
NEPA: National Environmental Policy Act of 1969.
NTS: Network integration transmission service.
non-firm point-to-point transmission service: Point-to-point
transmission service under the Tariff that is scheduled on an as-
available basis and is subject to curtailment or interruption.
OASIS: Open Access Same Time Information System.
operating reserve: Spinning reserve service and supplemental
reserve service.
P-DP: Parker-Davis Project.
PCF: Public comment forum.
peak: Those hours or other periods defined by contract or other
agreements or guides as periods of higher electrical demand.
PIF: Public information forum.
PRS: Power repayment study.
Rate Brochure: A document prepared for public distribution
explaining the background and purpose of this rate adjustment
proposal.
reactive power: Portion of total power required to produce flux
necessary to the operation of electromagnetic devices (such as,
transformers). The unit of measurement is the VAR.
reactive supply and voltage control: Provides reactive supply
through changes to generator reactive output to maintain
transmission line voltage and facilitate electricity transfers.
Reclamation: U.S. Bureau of Reclamation, Department of the
Interior.
regulation and frequency response service: Provides for
following the moment-to-moment variations in the demand or supply in
a control area and maintaining scheduled interconnection frequency.
RMR: Rocky Mountain Customer Service Region.
SCADA: System Control and Data Acquisition.
schedule: An agreed upon transaction for delivery and receipt of
power and energy between the contracting parties and the control
area(s) or transmission provider involved in the transaction.
scheduling, system control, and dispatch service: Provides for
(a) scheduling; (b) confirming and implementing an interchange
schedule with other control areas, including intermediary control
areas providing transmission service; and (c) ensuring operational
security during the interchange transaction.
SLCA/IP: The Salt Lake City Area/Integrated Projects, which are
the CRSP, Collbran, and Rio Grande projects.
spinning reserve service: Providing capacity that is available
to serve load immediately in the event of a system contingency.
Spinning reserve may be provided by generating units that are on-
line and loaded at less than maximum output.
supplemental reserve service: Is needed to serve load in the
event of a system contingency. This service is not available
immediately to serve load but rather within a short period of time.
system: An interconnected combination of generation,
transmission, and distribution components.
Tariff: Open Access Transmission Service Tariff.
transmission: The movement or transfer of electric energy
between points of supply and points at which it is transformed for
delivery to customers or is delivered to other electric systems.
transmission customer: An eligible customer (or its designated
agent) that can or does execute a transmission service agreement or
can or does receive transmission service.
transmission provider: Any public utility that owns, operates,
or controls facilities used for the transmission of electric energy
in interstate commerce.
transmission service: Point-to-point transmission service
provided on a firm or non-firm basis.
transmission system: The facilities owned, controlled, or
operated by the transmission provider that are used to provide
transmission service.
WALC: Western Area Lower Colorado control area.
WACM: Western Area Colorado Missouri control area.
Effective Date
The formula rates will become effective on the first day of the
billing period on or after April 1, 1999, and remain in effect until
March 31, 2004, pending FERC's approval of them or substitute rates or
until superseded. These formula rates will be applied to transmission
service agreements under the Tariff and conform with the spirit and
intent of FERC Order No. 888.
Public Notice and Comments
The following summarizes the steps taken by DSW to ensure the
involvement of interested parties in the rate process:
1. During 1997 and the spring of 1998, DSW hosted a series of
meetings presenting alternatives for ancillary services and taking
comments from those who attended.
2. A Federal Register notice was published on June 19, 1998 (63 FR
118), officially announcing the proposed NTS and ancillary services
rates adjustment, initiating the public consultation and comment
period, announcing the public information and public comment forums,
and outlining procedures for public participation.
3. On June 16, 1998, DSW mailed a copy of the ``Parker-Davis
Project, Boulder Canyon Project, Pacific Northwest-Pacific Southwest
Intertie Project Transmission and Ancillary Services Rate Adjustment
Brochure'' to all firm transmission and power customers and interested
parties of those projects and to the Salt Lake City Area/ Integrated
Projects (SLCA/IP) firm power, and Colorado River Storage Project
(CRSP) transmission customers who receive services from DSW's control
area.
4. On June 30, 1998, DSW held a public information forum (PIF) in
which the information contained in the Brochure was explained. After
the presentation, participants questioned DSW personnel on the
particulars of the proposed rates.
5. On July 30, 1998, DSW held a public comment forum (PCF).
Participants gave statements of their concerns on the proposed rates.
6. On August 28, 1998, DSW sent a letter to all participants in the
PCF and PIF answering any questions which were not answered in the PIF.
7. The consultation and comment period ended on September 18, 1998.
Project Description
Western is a Federal power marketing administration. It was created
in 1977 by section 302(a)(1)(E) and (F) of the Department of Energy
Organization Act 42 U.S.C. 7152, to perform the power marketing and
transmission functions previously performed by the Bureau of
Reclamation (Reclamation) for the Secretary of the Interior. DSW
markets approximately 2,243 MW of generation capacity from its two
power projects--P-DP and BCP. DSW serves firm electric and transmission
customers in a three-State area, over a transmission system of
approximately 2,097 miles and 74 substations.
[[Page 25326]]
Parker-Davis Project
In 1954, the Parker Dam Project and the Davis Dam Project were
consolidated to form the Parker-Davis Project (P-DP). The major works
include Davis Dam and Powerplant, Parker Dam and Powerplant, a high-
voltage transmission system, and substations which sectionalize the
long transmission lines.
Lake Havasu, formed by Parker Dam, provides a forebay and desilting
basin from which the Metropolitan Water District pumps water into its
Colorado River Aqueduct. Parker Dam Powerplant was added to provide
low-cost electrical energy to Arizona and southern California. Davis
Dam provides re-regulation of the Colorado River below Hoover Dam and
facilitates water delivery beyond the boundary of the United States as
required by treaty with Mexico. The Davis Dam portion of the project
also provides for production and transmission of electrical energy,
contributes to flood control, irrigation and municipal water supplies,
navigation improvement, recreation, and wild waterfowl protection and
related conservation purposes.
The firm point-to-point transmission service rate for P-DP
calculated under rate schedule PD-FT6 is $12.99/kWyear. The non-firm
point-to-point transmission service rate for P-DP calculated under rate
schedule PD-NFT6 is 2.47 mills/kWh.
Boulder Canyon Project
Authorized by the Act of December 21, 1928 (45 Stat. 1057), subject
to the terms of the Colorado River Compact, the Boulder Canyon Project
(BCP) was conceived for the regulation of the Colorado River to relieve
the constantly recurring cycles of flood and drought for the residences
of the Southwest. Hoover Dam facilities include a 1,344,800-kilowatt
powerplant. The dam and high-voltage switchyards are located in the
Black Canyon of the Colorado River, on the Arizona-Nevada State line.
Lake Mead, the reservoir behind Hoover Dam, will hold the entire flow
of the river for 2 years. This storage, in addition to providing for
improvement of navigation, river regulation, and flood control,
provides for the delivery of stored water for irrigation and other
beneficial consumptive uses, and for the generation of electrical
energy.
Pacific Northwest-Pacific Southwest Intertie Project
The Pacific Northwest-Pacific Southwest Intertie Project (Intertie)
was authorized as part of a much larger alternating current and direct
current combined transmission system, by Section 8 of the Act of August
31, 1964, 16 U.S.C. 837g. The basic purpose of the combined
transmission system was to provide, through power transmission system
interconnections, maximum use of the total power resources to meet the
Nation's growing demands. This purpose was to be accomplished through:
(1) the exchange of summer-winter surplus peaking capacity between the
northwest and southwest to reduce capital expenditures for new
generating capacity, (2) the sale of northwest secondary energy to the
southwest, (3) the sale of southwest energy to the northwest to
``firm'' peaking hydroelectric sources during critical water years, (4)
conservation of significant amounts of fuel through the use of surplus
hydroelectric energy, and (5) increased efficiency in the operation of
hydroelectric and thermal resources.
The Intertie facilities extend from Mead Substation in southern
Nevada near Boulder City and Hoover Dam, southeast through Arizona, to
the Phoenix area. The major features of the system are the Mead and
Liberty Substations, a 260-mile Mead-Phoenix 500-kV AC Transmission
Line from the Marketplace Substation to Perkins Substation, a 238-mile
Mead-Liberty 345-kV Transmission Line, a 31-mile Liberty-Westwing 230-
kV Transmission Line, and the 22-mile Westwing-Pinnacle Peak 230-kV
Transmission Line.
The firm point-to-point transmission service rate for the Intertie
calculated under rate schedule INT-FT2 is $6.58/kWyear for service on
the 230/345-kV transmission system and $17.23/kWyear for service on the
500-kV transmission system. The non-firm point-to-point transmission
service rate for the Intertie calculated under rate schedule INT-NFT2
is 2.00 mills/kWh.
Discussion
Control Area Consolidation
On April 1, 1998, the Western Area Upper Colorado control area,
within which SLCA/IP generation and most of the CRSP transmission
system lies, was divided between with two other control areas, the
Western Area Colorado Missouri (WACM) operated by Western's Rocky
Mountain Customer Service Region (RMR), and the Western Area Lower
Colorado (WALC), operated by DSW. SLCA/IP generation is consolidated by
the DSW operations, and the transmission lines were divided at Four
Corners Substation.
Network Integration Transmission Service
DSW will offer NTS to all eligible transmission customers. NTS is
subject to availability. NTS will be offered separately for P-DP and
Intertie. Annual power repayment studies (PRS), prepared separately for
P-DP and Intertie, are used to derive the annual transmission revenue
requirement for NTS. Annual transmission costs used to determine this
revenue requirement are operation and maintenance expense,
administrative and general expense, principal expense, and interest
expense.
The monthly charge for NTS is the product of the transmission
customer's load-ratio share times one-twelfth of the annual
transmission revenue requirement. The customer's load-ratio share is
calculated on a rolling twelve-month basis (12-CP). As outlined in
DSW's rate adjustment brochure, the customer's load-ratio share is
equal to the network transmission customer's hourly load coincident
with the corresponding transmission system's monthly peak hour divided
by the resultant value of the corresponding transmission system's
monthly peak minus the monthly coincident peak for all corresponding
firm point-to-point transmission service plus corresponding firm point-
to-point reservations. In order to ensure the collection of the
transmission systems' annual revenue requirement, the difference
between the first two components of the resultant value outlined above
constitutes the network transmission systems' monthly peak and is
anticipated to be metered. Thus, an NTS customer, based on its 12-CP
load, will pay its proportionate share of the revenue requirement for
the month. Since DSW's point-to-point transmission customers are
charged on a reservation and not a usage basis, for the purposes of
determining the NTS charge, the transmission systems' monthly peak will
coincide with the network transmission systems' monthly peak.
Based on updated financial and load data a recalculated revenue
requirement will go into effect on October 1 of each year during the
effective rate schedule period.
Ancillary Services
DSW has marketed the maximum practical amount of power from each of
its projects, leaving little or no flexibility for provision of
additional electric services from the projects. Changes in water
conditions frequently affect the ability of hydroelectric projects to
meet obligations on a short-term basis. The unique characteristics of
[[Page 25327]]
the hydro resource, Western's marketing plans, and the limitations of
the resource due to changing water conditions limit Western's ability
to provide generation-related services, including ancillary services
using Federal hydro resources.
Six ancillary services will be offered by DSW, two of which are
required to be purchased by the transmission customer. These two are:
(1) scheduling, system control, and dispatch service and (2) reactive
supply and voltage control services. The remaining four ancillary
services (3) regulation and frequency response service; (4) energy
imbalance service; (5) spinning reserve service; and (6) supplemental
reserve service--will be offered but are subject to availability from
DSW generation resources. If DSW is unable to provide these services
from its own resources, it will provide the services by making market
purchases and passing these costs directly to the customer plus a 10
percent administrative charge.
The provisional formula rates for ancillary services are designed
to recover only the costs incurred for providing the service(s). The
rates for ancillary services are based on WALC control area costs. The
formula rates will be recalculated every year, effective October 1,
based on the approved formula and updated financial and load data. DSW
will provide customer notice of changes in rates no later than
September 1 of each year.
The six ancillary services are as follows:
Scheduling, System Control, and Dispatch Service
Scheduling, system control, and dispatch costs are included in the
existing firm point-to-point transmission, firm power, and provisional
network integration transmission service rates. The provisional
scheduling, system control, and dispatch rate formulas apply only to
non-transmission customers.
The formula rates for scheduling, system control, and dispatch are
based on an annual cost of all capital costs (such as the dispatch
center building) and labor costs associated with the service. The
ancillary service is charged on a per schedule basis shown on Table 1
(below).
The cost per schedule per day was determined by multiplying the
labor cost per minute, times the average number of minutes it takes to
accomplish each type of schedule and adding the associated capital cost
amortized over 32 years divided by the average number of schedules in a
year. DSW will allow up to five schedule changes per transaction per
day at no additional charge. The sixth schedule change will be charged
as a new schedule.
The rates charged for scheduling, system control, and dispatch
ancillary service are contingent on the type of service required (i.e.,
new versus existing schedule, SCADA versus no SCADA programming, and
intra-bus transfer versus no intra-bus transfer). The rates are shown
in the table below.
Table 1
------------------------------------------------------------------------
Maximum
Cost ($)
Schedule type per
schedule
per day
------------------------------------------------------------------------
Existing schedule, requires no SCADA programming or intra- 34.10
bus transfer \1\...........................................
New schedule, requires SCADA programming, no intra-bus 37.50
transfer...................................................
Existing schedule, requires no SCADA programming, requires 46.85
intra-bus transfer.........................................
New schedule, requires SCADA programming, and intra-bus 56.20
transfer...................................................
------------------------------------------------------------------------
\1\ Multiple exchange of ownership in an interchange schedule is known
as intra-bus transfer schedule.
Reactive Supply and Voltage Control Service From Generation Sources
The transmission provider must offer this service to the
transmission customer for each transaction on the transmission
provider's transmission facilities. The transmission customer must
purchase this service from the transmission provider or the control
area operator. The rate for reactive supply and voltage control
ancillary service is calculated by dividing the combined revenue
requirement for the service of P-DP, BCP, and SLCA/IP, by the sum of
the control area's average firm-power allocation transmission
reservations, network transmission (12-CP) and average firm
transmission reservations, yielding a rate of $0.07/kWmonth. Revenues
from this service will be allocated to each project based on a
relationship to reactive power produced.
The rate presented at the PIF was $.08/kWmonth. The difference in
the two rates is due to the addition of the Intertie transmission
reservations, which had been inadvertently excluded, to the denominator
of the equation.
Regulation and Frequency Response Service
The transmission provider must offer this service when the
transmission service is used to serve load within its control area. The
transmission customer must either purchase this service from the
transmission provider or make alternative comparable arrangements to
satisfy its regulation and frequency response service (Regulation)
obligation. Regulation is not available from DSW resources on a long-
term firm basis.
Initially, DSW proposed a single control area charge. However,
based on comments received and further analysis, DSW has determined, if
available, it will charge the firm-capacity rate of the project
providing the regulation. The effective firm-capacity rate for BCP is
found under rate schedule BCP-F5. The effective firm-capacity rate for
P-DP is found under rate schedule PD-F6. The effective firm-capacity
rate for SLCA/IP is found under rate schedule SP-FR1. If unavailable,
DSW, upon request, will obtain the service on the open market for the
customer and pass through the cost of the service, plus a 10 percent
administrative charge.
Energy Imbalance Service
An energy imbalance account will be maintained for each customer
scheduling energy in the WALC control area. There will be no charge for
maintaining an energy imbalance account. The transmission provider must
offer this service when the transmission service is used to serve load
within its control area. The transmission customer must either request
this service from the transmission provider or make alternative
comparable arrangements to satisfy its energy imbalance service
obligation. DSW established guidelines for energy imbalance service as
deviations outside a 3 percent bandwidth ( 1.5 percent
hourly deviations), with a 2 MW deviation minimum. These guidelines are
consistent with FERC for this service. DSW reserves the right to assess
a penalty applied against under-delivery (negative excursion) greater
than 1.5 percent and occurring more than five times per month may be
assessed a penalty charge of 100 mills/kWh; e.g., the sixth time an
under-delivery occurs within a month, the 100 mills/kWh charge will be
applied.
Any over-delivery (positive excursion) will be credited to the
customer for 50 percent of the market value of the over-delivery within
30 days, provided the over-deliveries do not impinge upon DSW
operations. Deviation accounting will be completed monthly on an hour-
to-hour basis. The market value determinant will be the average monthly
nonfirm price from DSW merchants operating within the WALC control
area.
[[Page 25328]]
Operating Reserves--Spinning Reserve Service
Spinning reserves are unavailable from WALC resources. DSW, upon
request, will obtain reserves on the open market for the customer and
pass through the cost of those reserves, plus a 10 percent
administrative charge. Transmission customers will be responsible for
the transmission service to get these reserves to their destination.
Operating Reserves--Supplemental Reserve Service
Supplemental reserves are unavailable from WALC resources. DSW,
upon request, will obtain reserves on the open market for the customer
and pass through the cost of those reserves, plus a 10 percent
administrative charge. Transmission customers will be responsible for
the transmission service to get these reserves to their destination.
Existing and Provisional Rates
This rate order seeks to place DSW's first NTS formula rates and
ancillary service formula rates for long-term sales, and as such, no
existing rates for comparative purposes can be displayed. The following
table is a summary of the formula rates for NTS and ancillary services
and rates for April 1, 1999, to September 30, 1999, based on these
formulas:
Table 2
----------------------------------------------------------------------------------------------------------------
Formula rate with rate for April 1, 1999 to
Service type Service Description September 30, 1999.
----------------------------------------------------------------------------------------------------------------
Scheduling, System Control, and Required to schedule the Included in appropriate transmission rates.
Dispatch. movement of power For non-transmission customers, rate per
through, out of, within, schedule per day is between $34.10 for
or into a control area. existing schedule and $56.20 for new with
intra-bus schedule and SCADA programming.
Reactive Supply and Voltage Control. Reactive power support $0.07/kWmonth. Combined revenue requirement
provided from generation for service/WALC average firm transmission
facilities that is reservations, (includes electric service
necessary to maintain reservations and network reservations).
transmission voltages
within acceptable system
limits.
Regulation and Frequency Response... Necessary for providing Not available from DSW resources. If available
generation to match on short-term it will be priced at the
resources and loads on a capacity rate of the project supplying the
real-time continuous service. If not available, the service will
basis. Rate will be be purchased on the open market and the cost
applied to resources passed to the customer plus a 10 percent
reserved for this service. administrative charge.
Energy Imbalance.................... Provided when a difference No charge for maintaining an energy imbalance
occurs between the account. Under-deliveries outside a 3 percent
scheduled and the actual bandwidth with a 2 MW deviation minimum may
delivery of energy to a be assessed a penalty. Over-deliveries may be
load located within a credited 50 percent of market within 30 days.
control area over a
single hour.
Spinning Reserve.................... Needed to serve load Not available from DSW resources. If
immediately in the event requested, DSW will obtain on the open market
of a system contingency. and pass on cost plus a 10 percent
administrative charge.
Supplemental Reserve................ Needed to serve load Not available from DSW resources. If requested
immediately in the event DSW will obtain on the open market and pass
of a system contingency; on cost plus a 10 percent administrative
however, it is not charge.
available immediately to
serve load but, rather
within a short period of
time.
Network Integration Transmission Transmission service based Revenue Requirement/12 x customer's load-ratio
Service. on customer's load-ratio share.
share. P-DP = $23,001,589.
Intertie = $21,943,150.
----------------------------------------------------------------------------------------------------------------
Certification of Rates
Western's Administrator has certified that the DSW NTS and
ancillary services formula rates placed into effect on an interim basis
herein are the lowest possible consistent with sound business
principles. The formula rates have been developed in accordance with
agency administrative policies and applicable laws.
Comments
During the public consultation and comment period, Western received
19 written comments on the rate adjustment. In addition, customer
representatives from 10 organizations asked questions during the June
30, 1998, PIF or commented during the July 30, 1998, PCF. All comments
received during the consultation and comment period were reviewed and
considered in preparing this rate order.
Representatives from the following organizations made oral comments
during either the PIF or the PCF:
Arizona Electric Power Cooperative, Arizona
Arizona Power Authority, Arizona
Arizona Public Service Company, Arizona
Colorado River Energy Distributors Association, Arizona
Irrigation & Electrical District Association of Arizona, and others
K.R. Saline & Associates, Arizona
Metropolitan Water District, Arizona
Meyer, Hendricks, Phoenix, Arizona
Resource Management International, Phoenix, Arizona
Wellton-Mohawk Irrigation and Drainage District, Arizona
Representatives from the following organizations submitted written
comments:
Aguila Irrigation District, Arizona
Arizona Electric Power Cooperative, Arizona
Arizona Power Authority, Arizona
Arizona Public Service Company, Arizona
Buckeye Water Conservation & Drainage District, Arizona
Colorado River Commission, Nevada
Colorado River Energy Distributors Association, Arizona
Electrical District No. 2, Pinal County, Arizona
Electrical District No. 3, Maricopa County, Arizona
Electrical District No. 4, Pinal County, Arizona
Electrical District No. 6, Pinal County, Arizona
Electrical District No. 8, Maricopa County, Arizona
Harquahala Valley Power District, Arizona
Irrigation & Electrical District Association of Arizona, and others
Maricopa Water District, Arizona
McMullen Valley Water Conservation & Drainage District, Arizona
Metropolitan Water District of Southern California, California
Roosevelt Irrigation District, Arizona
Salt River Project, Arizona
San Tan Irrigation District, Arizona
City of Stafford, Arizona
The following comments were received during the public comment
[[Page 25329]]
period. DSW paraphrased and combined comments when it did not affect
the meaning. Several comments are outside the scope of this rate order.
In response to these comments, DSW has either indicated the proper
forum for the comment or generalized DSW policy for clarification.
DSW's response follows each comment.
Network Integration Transmission Service
Comment: Several commentors want to know the level of NTS that
Western expects to have available in P-DP and Intertie, and if Western
has received any requests for that service. A commentor stated that
Western should offer NTS.
Response: At the time this rate order was published, DSW had not
received any requests for NTS and no studies have been done to
determine availability of NTS for any customers.
Comment: A commentor expressed concern about the effect NTS will
have on dispatch of SLCA/IP, P-DP, and BCP generation resources (e.g.,
redispatch obligation during a transmission constraint). A commentor
requests explanation of the process to be undertaken when assessing
NTS, and is concerned whether or not Western will consider potential
legal, environmental, and operational issues related to providing NTS
as part of the impact study prepared for requests for NTS. A commentor
questions if the process to assess NTS is in a descriptive form and can
it be accessed through the OASIS.
Response: This question is outside the scope of this rate order
process because it does not speak to the pricing of the service.
Redispatch is discussed in section III of the Tariff. Requests for NTS
will be evaluated on a case-by-case basis. The process for this
evaluation is discussed in the Tariff, which is available by hot links
in the OASIS. Furthermore, Western will evaluate its ability to provide
NTS under section 32 of the Tariff and will continue to meet its firm
contractual obligations. Western will not enter into any agreements
which cause it to operate outside its operational, legal, and
environmental parameters.
Comment: A commentor wants clarification of how Western will
allocate the cost of a load across two systems when the delivery is
from a receipt point to a delivery point for a customer taking NTS.
Response: Each project is treated as a separate transmission
system. A customer requesting NTS from two different transmission
systems, would have to make separate requests for this service from the
respective transmission system's provider, and each transmission system
would have to be evaluated for its capability to provide network
service. If both transmission systems have the availability to provide
NTS, then the transmission customer would have to pay for the network
service on each of the transmission systems. DSW's NTS formula rates
for the P-DP and Intertie transmission systems are the same, but the
variable values for annual revenue requirement and loads are unique for
each project. Therefore, a transmission customer receiving NTS on both
the P-DP and Intertie transmission systems would receive monthly
charges from each project based on the resultant formula calculation
for each individual project.
Ancillary Services
Scheduling, System Control, and Dispatch
Comment: A commentor stated that the rate for scheduling, system
control, and dispatch service is too high.
Response: Scheduling, system control, and dispatch service costs
are included in all types of transmission service provided by DSW. The
formula rate presented in this rate order uses an incremental cost
approach and is applicable to non-transmission customers.
Comment: A commentor believes that using a per schedule instead of
a rate based on megawatts discriminates against small customers and is
not comparable to what DSW is charging under its bundled services to
its statutory service customers since firm customers are charged on a
per kilowatt basis.
Response: DSW's methodology for developing a rate for scheduling,
system control, and dispatch service applies incremental cost recovery
for services supplied to non-transmission customers. It allows DSW to
differentiate between requests that require no programming or intra-bus
transfers from those that do. Ultimately, DSW's intent is to recover
the costs for providing the service. This intent is consistent with
what DSW charges under its bundled services.
Reactive Supply and Voltage Control
Comment: A commentor does not know how Western will determine power
factor for customers passing through the system as opposed to serving
loads within the control area.
Response: This comment is outside the scope of this rate order
process. However, the power factor may be measured at the customer's
demarcation points to the WALC control area provided that they can be
discretely identified.
Regulation
Comment: A commentor wants to know how and under what conditions
does Western expect to have regulation service available to offer on a
long-term and short-term basis.
Response: This question is outside the scope of the rate order. DSW
has stated in this rate order that it does not expect to have
regulation available for sale from its project generation on a long-
term basis. However, there may be short-term, hourly regulation
available which would be priced at the firm-capacity rate of the
project providing the service.
Comment: A commentor wants clarification on how Western plans to
price regulation provided by SLCA/IP resources (CRSP CSC rate or DSW
rate) and to credit revenues to SLCA/IP resources for regulation
provided (CRSP CSC rate or DSW rate).
Response: This comment is addressed in the CRSP CRC rate process.
Initially, DSW proposed single control area rate which included SLCA/
IP, P-DP, and BCP generation costs. Since that time, DSW has determined
it will apply the firm-capacity rate of the generation project
providing the regulation service. If unavailable, DSW, upon request,
will purchase this service from the market, plus a 10 percent
administrative charge.
As approved by FERC at 84 FERC 61 para. 039 in the CRSP CSC rate
process, the price for regulation will be determined under the SP-FR1
rate schedule. The rate schedule provides for CRSP CSC to ``. . .
obtain regulation on the open market for the customer and pass through
the costs, plus a 10 percent administrative charge, if unavailable from
SLCA/IP resources. If available for sale, the SLCA/IP firm-power
capacity rate, currently in effect, will be charged.''
If a transmission customer purchases this service from SLCA/IP
generation, those revenues will go directly to the Basin Fund.
Comment: A commentor expressed a preference for regulation revenue
being allocated to the unit (or at least the project) that supplies the
service rather than having an allocation based on the installed
capacity. A commentor gave an example that if Hoover is providing the
regulation, revenue should be credited toward the Hoover project.
Another commentor requests that Western consider allocating the
revenues assigned to DSW on the same basis as they are allocated
between DSW and CRSP CSC, that is, based on the capacity used to
provide the service.
Response: Western considered these comments and agrees. Western has
[[Page 25330]]
changed the basis for the regulation service charge. The regulation
service rate will be equal to the capacity charge for the project which
supplies the service and revenues will be credited to that project.
Energy Imbalance
Comment: A commentor expressed concern that it may be risky for
Western to allow up to five ``free'' energy imbalance deviations based
on deviation during the most costly hours of the month.
Response: DSW has included in its energy imbalance compensation
methodology a provision which allows the transmission customer to
exceed the 1.5 percent bandwidth ``five times'' per month without
penalty. DSW included this provision in its proposed methodology
because it believes it is fair and reasonable. If DSW determines that
exceeding the bandwidth more than ``five times'' without penalty is not
reasonable, it may revise its rate schedule to include a more
appropriate penalty. However, given that five times results in 5 hours
out of an average of 730 hours in a month, DSW does not believe this is
unreasonable and would not result in a significant risk.
Comment: A commentor suggests Western's assessment for under-
delivery should be based on the greater of 100 mills/kWh or the real-
time cost of dealing with the imbalance and requests that DSW consider
imposing a penalty upon entities which continually under-deliver their
schedule, even if they remain within the proposed 1.5 percent
allowance.
Response: DSW believes 100 mills/kWh is adequate to cover costs.
The energy will be returned in addition to the penalty, if DSW
determines it should be assessed. Within normal operations, it is
reasonable to expect some amount of under-delivery throughout a month.
Spinning and Supplemental Reserves
Comment: A commentor wants to know if Western intends to provide
short-term spinning and supplemental reserve services. If so, at what
rate?
Response: DSW does not expect to have short-term spinning and
supplemental reserve services. DSW will offer to purchase this service
for a transmission customer, and pass through the cost, plus a 10
percent administrative charge.
Comment: A commentor requested clarification that Western would
obtain reserves only upon the request of specific customers and that
those costs would be borne entirely by the requesting customers.
Response: This is correct. The costs to the requesting customer
will also include a 10 percent administrative charge.
General
Comment: A commentor wants to know how Western will determine what
excess ancillary services are available for the market.
Response: This comment is outside the scope of this rate process.
The method for determining excess ancillary services will be determined
in the implementation process.
Comment: Several commentors questioned Western's ability to account
for and properly allocate across the DSW projects the costs incurred in
providing ancillary services.
Response: DSW believes it has allocated costs appropriately among
all projects. Costs are in the rates expressed as the revenue
requirement. The method for accounting for the costs was developed in
an informal work group.
Comment: A commentor suggests that the rate order should document
Western's limited ability to provide NTS and ancillary services and
recommends adoption of language previously stated by CRSP CSC.
Response: Western recognizes its limited ability to provide
generation-related services from all its projects, as reflected in its
Tariff which states, ``Western has marketed the maximum practical
amount of power from each of its projects, leaving little or no
flexibility for provision of additional power services.''
DSW recognizes the fact that it has limited ability to provide NTS
and ancillary services and has stated this fact in this rate order. For
those ancillary services that DSW is unable to provide from its own
resources, DSW, upon customer request, will purchase the service and
pass through the costs to the customer plus a 10 percent administrative
charge.
Comment: A commentor stated Western does not have any services
available because of its legal and statutory obligations. Several
commentors questioned Western's ability to provide these services
without contracting away resources which contractually belong to its
statutory customers.
Response: As stated in Western's Tariff, Western is, at the request
of the Secretary of DOE, undertaking to comply with the principles of
FERC Order Nos. 888 and 889 to the extent consistent with applicable
law, and accordingly will provide NTS and ancillary services to the
extent it has the capability to do so. As stated in the Tariff,
``Nothing in this tariff shall alter, amend, or abridge the statutory
or contractual obligations of Western to market and deliver Federal
power resources and to repay the Federal investment in such projects.''
Comment: A commentor wants to know what role the current customers
will have when applications for services are entertained. A commentor
suggests Western adopt specific processes which would include something
like notification of current customers so they can protect their
interests by some monitoring function. A commentor requests that
Western consider ways to best use existing customer processes.
Response: These questions are outside the scope of this rate order.
However, DSW will not implement a new process for customer input on
individual requests for firm or non-firm transmission. DSW believes
that existing processes (such as Joint Planning) are still the best
mechanisms for continuing customer communication.
Comment: A commentor requests Western maintain a record of
transactions to identify how the ancillary services are identified and
provided, and how the revenues and costs are allocated. A commentor
requests clarification on how Western plans to track the services
provided by each office and allocate the revenues appropriately. Some
recommendations made were that Western adopt a process which documents
provider, cost, recipient, and revenue flow, and that there be a record
that clearly identifies the flow of these revenues into the Basin Fund.
Several commentors questioned Western's ability to properly allocate
any revenues that may be received from ancillary service sales.
Response: The comments are outside the scope of this rate order.
However, Western has the ability and knowledge to properly allocate any
revenues received from the sale of ancillary services to the
appropriate project account. For each transaction, Western's financial
records will indicate the entity that received the service, the type of
service provided, the amount of revenues received, and which fund
received the revenues. Western has established a separate code for each
transmission and ancillary service. The flow of funds into the Basin
Fund will be clearly identified in Western's financial records.
Comment: A commentor requests that Western's OASIS postings and
operating procedures reflect the nature of the availability of
services.
Response: This request is outside the scope of this rate order.
However, the
[[Page 25331]]
Tariff outlines Western's limited ability to provide generation-related
services, and the Tariff is the governing document under which all
OASIS transactions will be conducted.
Comment: Several commentors questioned what policies, procedures,
or guidelines has Western developed to ensure that if these additional
services are marketed and provided that they will have no adverse
operational or financial effect on CRSP CSC customers.
Response: This comment is outside the scope of this rate order. DSW
does not anticipate having a substantial amount of ancillary service
sales from its Federal generation. Because Western recognizes this
fact, and is committed to its statutory obligations, Western has
included in its Tariff provisions for purchases from other sources to
satisfy requests for specific ancillary services.
DSW will continue to operate in the same manner as it has in the
past. That is, it will continue to meet its firm-power obligations and
its firm-transmission obligations, all within allowable operational
constraints. DSW will continue to review individual requests taking
these factors into consideration. Western will also continue to not
make any sales of generation-related services from the Federal
generators if it does not have the capability to do so.
Western will identify and track services provided by SLCA/IP and
ensure that SLCA/IP is being compensated for those services
appropriately.
Comment: A commentor wants to know the revenue potential and
overhead incurred if Western segregates the merchant function.
Response: This comment is outside the scope of the rate order
because, the rate proposal does not include merchant function costs. It
is unknown at this time what costs may be incurred for overhead or what
revenue potential exists if Western should separate the function.
Comment: A commentor observed that many questions and comments at
both the PIF and PCF were about the marketing of services, and not the
pricing. A commentor requests Western address the questions related to
marketing and marketing activities. A commentor recognizes that many of
the questions will not be answered in final decision on rates.
Response: Western agrees that many comments are outside the subject
of this rate order but DSW has, when possible, addressed those
questions and comments which relate to the marketing of NTS and
ancillary services. Those questions or comments which were not
addressed will be resolved as Western implements its Tariff, within the
limits of its marketing plan.
Comment: A commentor noted that the revenue stream from NTS and
ancillary services seem to apply to a revenue requirement which is
already being covered by existing DSW customers and appears to be
profitable.
Response: For the immediate future, these revenue streams were not
included in the rate study projections. However at the end of each
year, money from NTS and ancillary services will be included as ``other
revenue'' in the PRS, thus offsetting the revenue requirement.
Comment: A commentor requests that DSW take into consideration the
importance of looking at current commitments, and statutory obligations
under existing arrangements to understand Western's ability to provide
the proposed services.
Response: This rate order presents a methodology for determining
rates for each service if it were to be sold. As part of implementing
Western's Tariff, it will be determined if resources exist to supply
any individual request. All requests will be looked at thoroughly to
determine viability in a manner not detrimental to present commitments.
Comment: A commentor questions Western's ability to provide NTS
since Western would have to integrate loads and other generators into
its control area, causing a change in the operation of its generators.
A commentor asserts that integration would result in the violation of a
generation project's environmental assessment and marketing plan, and
that a change in the operations has not been studied in any of
Western's marketing plans. As a result, the commentor requests Western
state clearly in its documentation that it cannot provide NTS or
ancillary services. A commentor expressed similar concerns. A commentor
is concerned about any additional marketing by Western of generation-
related services because of the potential increase and magnitude of
violations of operating criteria established for Glen Canyon Dam. A
commentor is concerned that Western has some unique obligations and
legal requirements, particularly related to operations at Glen Canyon
Dam, that the commentor wants to ensure are not impinged upon.
Response: Western has committed to providing NTS, to the extent it
has the capability to do so. When an application for NTS is received by
Western, Western must evaluate its ability to provide the service
considering existing contractual firm obligations.
The CRSP CSC, in its Notice of Rate Order, stated, ``Western has
allocated most of its SLCA/IP power resources to preference entities
under long-term commitments. Western will determine if any of its SLCA/
IP resources are available to provide the ancillary service requested
at the time of the request. If Western does not have the resources
available from the SLCA/IP, the CRSP CSC will offer to purchase the
resource from the open market or from a control area operator, and pass
the cost through to the customer.'' Since Glen Canyon Dam is a large
component of SLCA/IP, no additional sales of generation-related
services will be made from Glen Canyon Dam if the resources are not
available.
Operational constraints at Glen Canyon Dam will not be violated to
provide sales of ancillary or transmission services. DSW and
Reclamation ensure that operational constraints are adhered to and when
resources are required beyond the operational capability of those
facilities, purchases of supplemental resources are made by Western. In
recognition of the resource limitations and restrictions of the
generation facilities, Western included a provision in its Tariff, that
provides Western the option to purchase ancillary services and pass
through the cost to the transmission customer.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.)
requires Federal agencies to perform a regulatory flexibility analysis
if a proposed rule is likely to have a significant economic impact on a
substantial number of small entities and there is a legal requirement
to issue a general notice of proposed rulemaking. Western has
determined that this action does not require a regulatory flexibility
analysis since it is a rulemaking of particular applicability involving
rates or services applicable to public property.
Environmental Compliance
In compliance with the National Environmental Policy Act of 1969,
42 U.S.C. 4321, et seq.; Council On Environmental Quality Regulations,
40 CFR parts 1500-1508; and DOE NEPA Regulations, 10 CFR part 1021,
Western has determined that this action is categorically excluded from
the preparation of an environmental assessment or of an environmental
impact statement.
Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no
[[Page 25332]]
clearance of this notice by the Office of Management and Budget is
required.
Submission to Federal Energy Regulatory Commission
The formula rates herein confirmed, approved, and placed into
effect on an interim basis, together with supporting documents, will be
submitted to FERC for confirmation and approval on a final basis.
Order
In view of the foregoing and pursuant to the authority vested in me
as the Secretary of Energy, I confirm, approve, and place into effect
on an interim basis, effective April 1, 1999, formula rates for
transmission and ancillary services under Rate Schedules DSW-SD1, DSW-
RS1, DSW-FR1, DSW-EI1, DSW-SPR1, DSW-SUR1, PD-NTS1, and INT-NTS1. The
rate schedules shall remain in effect on an interim basis, pending FERC
confirmation and approval of them or substitute formula rates on a
final basis through March 31, 2004.
Dated: April 29, 1999.
Bill Richardson,
Secretary.
Rate Schedule DSW-SD1; Schedule 1 to Tariff--Scheduling, System
Control, and Dispatch Service
Effective
The first day of the first full billing period beginning on or
after April 1, 1999, through March 31, 2004.
Applicable
This service is required to schedule the movement of power through,
out of, within, or into the Western Area Lower Colorado control area
(WALC). The charges for scheduling, system control, and dispatch
service are to be based on the rate referred to below. The formula rate
used to calculate the charges for service under this schedule was
promulgated and may be modified pursuant to applicable Federal laws,
regulations, and policies.
This formula rate is applicable to transactions with entities not
taking transmission service in WALC. Charges for scheduling, system
control, and dispatch service are included in the transmission rate.
The Desert Southwest Customer Service Region's charges for scheduling,
system control, and dispatch service may be modified upon written
notice to the customer and any change to the charges for the service
shall be as set forth in a revision to this rate schedule promulgated
pursuant to applicable Federal laws, regulations, and policies and made
part of the applicable service agreement.
Formula Rate
Cost per schedule = annual capital costs per schedule + (hourly
labor rate x avg time to execute schedule).
Rate
The rates charged for the scheduling, system control, and dispatch
service are contingent on the type of service required. The maximum
rates that can be charged for the various schedule types are shown in
the table below:
------------------------------------------------------------------------
Maximum
cost ($)
Schedule Type per
schedule
per day
------------------------------------------------------------------------
Existing schedule, requires no SCADA programming or intra- 34.10
bus transfer \1\...........................................
New schedule, requires SCADA programming, no intra-bus 37.50
transfer...................................................
Existing schedule, requires no SCADA programming, requires 46.85
intra-bus transfer.........................................
New schedule, requires SCADA programming, and intra-bus 56.201
transfer...................................................
------------------------------------------------------------------------
\1\ Multiple exchange of ownership in an interchange schedule is known
as intra-bus transfer schedule.
The above rates are based on FY 1997 financial and load data, and
will be in effect April 1, 1999, through September 30, 1999. Based on
updated financial and load data, a recalculated rate will go into
effect on October 1 of each year during the effective rate period.
Rate Schedule DSW-RS1; Schedule 2 to Tariff--Reactive Supply and
Voltage Control From Generation Sources Service
Effective
The first day of the first full billing period beginning on or
after April 1, 1999, through March 31, 2004.
Applicable
In order to maintain transmission voltages on all transmission
facilities within acceptable limits, generation facilities under the
control of the Western Area Lower Colorado control area (WALC) are
operated to produce or absorb reactive power. Thus, reactive supply and
voltage control from generation sources service (VAR Support) must be
provided for each transaction on the transmission provider's
transmission facilities. Generation sources under WALC are the Parker-
Davis Project, the Boulder Canyon Project and the Salt Lake City Area/
Integrated Projects. This service is required to be offered to the
transmission customer by the transmission provider in order to maintain
transmission voltages on the transmission provider's transmission
facilities within acceptable limits.
The customer must purchase this service from the WALC operator. The
charges for such service will be based upon the rate referred to below.
The formula rate used to calculate the charges for service under
this schedule was promulgated and may be modified pursuant to
applicable Federal laws, regulations, and policies. The Desert
Southwest Customer Service Region (DSW) charges for VAR Support may be
modified upon written notice to the customer. Any change to the charges
for VAR Support shall be as set forth in a revision to this rate
schedule promulgated pursuant to applicable Federal laws, regulations,
and policies and made part of the applicable service agreement. DSW
shall charge the customer in accordance with the rate then in effect.
Formula Rate
[GRAPHIC] [TIFF OMITTED] TN11MY99.007
[GRAPHIC] [TIFF OMITTED] TN11MY99.008
[[Page 25333]]
TACRRS is determined by combining, for each generation project, the
product of the percentage of resource capability used for reactive
supply and the total generation projects revenue requirement.
Rate
The rate to be in effect April 1, 1999, through September 30, 1999,
is:
Monthly: $0.07/kWmonth.
Weekly: $0.02/kWweek.
Daily: $0.00237/kWday.
Hourly: 0.0986 mills/kWh.
This rate is based on the above formula and on FY 97 financial and
load data. Based on updated financial and load data, a recalculated
rate will go into effect on October 1 of each year during the effective
rate period.
Rate Schedule DSW-FR1; Schedule 3 to Tariff--Regulation and
Frequency Response Service
Effective:
The first day of the first full billing period beginning on or
after April 1, 1999, through March 31, 2004.
Applicable
Regulation and frequency response service (Regulation) is necessary
to provide for the continuous balancing of resources, generation, and
interchange, with load and for maintaining scheduled interconnection
frequency at sixty cycles per second (60 Hz). Regulation is
accomplished by committing on-line generation whose output is raised or
lowered, predominantly through the use of automatic generating control
equipment, as necessary to follow the moment-by-moment changes in load.
The obligation to maintain this balance between resources and load lies
with the transmission provider. The transmission customers and
customers on others' transmission systems within WALC must either
purchase this service from WALC or make alternative comparable
arrangements to satisfy its Regulation obligation. The charges for
Regulation are referred to below. The amount of Regulation will be set
forth in the service agreement.
The formula rate used to calculate the charges for service under
this schedule was promulgated and may be modified pursuant to
applicable Federal laws, regulations, and policies.
The Desert Southwest Customer Service Region's (DSW) charges for
Regulation may be modified upon written notice to the Customer. Any
change to the Regulation charges shall be as set forth in a revision to
this rate schedule promulgated pursuant to applicable Federal laws,
regulations, and policies and made part of the applicable service
agreement. DSW shall charge the customer in accordance with the rate
then in effect.
Formula Rate:
Regulation will not be available on a long-term basis from DSW
resources. If this service is requested, and DSW determines that it is
available on a short-term basis, it will be priced at the firm-capacity
rate in effect for the generation project supplying the service.
Otherwise, DSW, upon request, will obtain Regulation on the open market
for the customer and pass through the cost, plus a 10 percent
administrative charge.
Rate
DSW Regulation Rate = market price + 10 percent
OR
=Capacity Rate of Generation Project Supplying Service (depending upon
availability)
The effective firm-capacity rate for Parker-Davis Project is found
under rate schedule PD-F6. For Boulder Canyon Project, the effective
firm-capacity rate is found under BCP-F5. For Salt Lake City Area/
Integrated Projects, the effective firm-capacity rate is found under
rate schedule SP-FR1.
Rate Schedule DSW-EI1; Schedule 4 to Tariff--Energy Imbalance
Service
Effective
The first day of the first full billing period beginning on or
after April 1, 1999, through March 31, 2004.
Applicable
Energy imbalance service is provided when a difference occurs
between the scheduled and the actual delivery of energy to a load
located within the Western Area Lower Colorado control area (WALC) over
a single hour. The transmission customer and customers on others'
transmission system within WALC must either obtain this service from
WALC or make alternative comparable arrangements to satisfy its energy
imbalance service obligation.
The WALC shall establish a deviation band width of 1.5
percent (with a minimum of 2 MW) of the scheduled transaction to be
applied hourly to any energy imbalance that occurs as a result of the
customer's scheduled transaction(s). Deviation accounting will be
completed monthly on an hour-to-hour basis.
The formula rate used to calculate the charges for service under
this schedule was promulgated and may be modified pursuant to
applicable Federal laws, regulations, and policies.
The energy imbalance service compensation may be modified upon
written notice to the customer. Any change to the customer compensation
for energy imbalance service shall be as set forth in a revision to
this schedule promulgated pursuant to applicable Federal laws,
regulations, and policies and made part of the applicable service
agreement. The Desert Southwest Customer Service Region (DSW) shall
charge the customer in accordance with the rate then in effect.
Formula Rate
For negative excursions (under-deliveries) outside the bandwidth
and occurring more than five times per month, DSW reserves the right to
assess a penalty charge of 100 mills/kWh.
For positive excursions (over-deliveries) outside the bandwidth,
the customer will be credited on the customer's bill, lagged by 1
month. The credit will be 50 percent of the market value of the over-
delivery, provided the over-deliveries do not impinge upon WALC
operations. For example, during times of high water or operating
constraints, DSW reserves the right to eliminate credits for over-
deliveries.
Rate
The bandwidth in effect is 3 percent (1.5 percent
hourly deviation) with a 2 MW deviation minimum.
Rate Schedule DSW-SPR1; Schedule 5 to Tariff--Operating Reserve--
Spinning Reserve Service
Effective
The first day of the first full billing period beginning on or
after April 1, 1999, through March 31, 2004.
Applicable
Spinning reserve service (Reserves) is needed to serve load
immediately in the event of a system contingency. Reserves may be
provided by generating units that are on-line and loaded at less than
maximum output. The transmission customer must either purchase this
service from the Western Area Lower Colorado control area (WALC), or
make alternative comparable arrangements to satisfy its Reserves
requirements. The charges for Reserves are referred to below. The
amount of Reserves will be set forth in the service agreement.
Formula Rate
No long-term Reserves are available from WALC resources. The Desert
Southwest Customer Service Region, upon request, will obtain the
Reserves on the open market for the customer and
[[Page 25334]]
pass through the cost, plus a 10 percent administrative charge.
Rate
Cost for Reserves = market price + 10 percent.
Rate Schedule PD-NTS1; Attachment H-1 to Tariff--Schedule of Rate
for Network Integration Transmission Service on the Parker-Davis
Project
Effective
The first day of the first full billing period beginning on or
after April 1, 1999, through March 31, 2004.
Applicable
The transmission customer shall compensate the Parker-Davis Project
each month for network integration transmission service (NTS) pursuant
to the applicable Network Integration Transmission Service Agreement
and annual revenue requirement referred to below. The formula for the
annual revenue requirement used to calculate the charges for this
service under this schedule was promulgated and may be modified
pursuant to applicable Federal laws, regulations, and policies.
The Desert Southwest Customer Service Region (DSW) may modify the
charges for NTS upon written notice to the transmission customer. Any
change to the charges to the transmission customer for NTS shall be as
set forth in a revision to this rate schedule promulgated pursuant to
applicable Federal laws, regulations, and policies and made part of the
applicable service agreement. DSW shall charge the transmission
customer in accordance with the revenue requirement then in effect.
Formula Rate
Monthly Charge = Transmission Customer's Load-Ratio Share x (Revenue
Requirement/12)
Rate
The projected annual revenue requirement allocated to transmission
for FY 1999 for the Parker-Davis Project is $23,001,589. Based on
updated financial and load data, a recalculated revenue requirement
will go into effect on October 1 of each year during the effective rate
schedule period.
Rate Schedule INT-NTS1; Attachment H-2 to Tariff--Schedule of Rate
for Network Integration Transmission Service on the Pacific
Northwest-Pacific Southwest Intertie Project
Effective
The first day of the first full billing period beginning on or
after April 1, 1999, through March 31, 2004.
Applicable
The transmission customer shall compensate the Pacific Northwest-
Pacific Southwest Intertie Project (Intertie) each month for network
transmission service (NTS) pursuant to the applicable Network
Integration Transmission Service Agreement and annual revenue
requirement referred to below. The formula for the annual revenue
requirement used to calculate the charges for this service under this
schedule was promulgated and may be modified pursuant to applicable
Federal laws, regulations, and policies.
The Desert Southwest Customer Service Region (DSW) may modify the
charges for NTS upon written notice to the transmission customer. Any
change to the charges to the transmission customer for NTS shall be as
set forth in a revision to this rate schedule promulgated pursuant to
applicable Federal laws, regulations, and policies and made part of the
applicable service agreement. DSW shall charge the transmission
customer in accordance with the revenue requirement then in effect.
Formula Rate
Monthly Charge = Transmission Customer's Load-Ratio Share x (Revenue
Requirement/12)
Rate
The projected annual revenue requirement for FY 1999 for the
Pacific Northwest-Pacific Southwest Intertie Project is $21,943,150.
Based on updated financial and load data, a recalculated revenue
requirement will go into effect on October 1 of each year during the
effective rate schedule period.
[FR Doc. 99-11864 Filed 5-10-99; 8:45 am]
BILLING CODE 6450-01-P
