[Federal Register Volume 59, Number 133 (Wednesday, July 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16991]
[[Page Unknown]]
[Federal Register: July 13, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southeastern Power Administration
Cumberland Basin System of Projects
AGENCY: Southeastern Power Administration (Southeastern), DOE.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: On June 29, 1994, the Deputy Secretary, Department of Energy,
confirmed and approved, on an interim basis, Rate Schedules CBR-1-C,
CSI-1-C, CEK-1-C, CM-1-C, CC-1-D, CK-1-C, AND CTV-1-C for the
Cumberland Basin System of Project's power. The rates were approved on
an interim basis through June 30, 1999, and are subject to confirmation
and approval by the Federal Regulatory Commission on a final basis.
DATES: Approval of rates on an interim basis is effective July 1, 1994.
FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Director, Power
Marketing, Southeastern Power Administration, Department of Energy,
Samuel Elbert Building, Elberton, Georgia 30635.
SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission by
Order issued September 26, 1989, in Docket No. EF89-3031-000, confirmed
and approved Wholesale Power Rate Schedules CBR-1-B, CSI-1-B, CEK-1-B,
CC-1-C, CM-1-B, CK-1-B, and CTV-1-B through June 30, 1994. Rate
Schedules CBR-1-C, CSI-1-C, CEK-1-C, CM-1-C, CC-1-D, CK-1-C, AND CTV-1-
C replace these rate schedules.
System Development: Nine projects make up the Cumberland system.
The Cumberland projects are: Dale Hollow, Center Hill, Wolf Creek, Old
Hickory, Cheatham, Barkley, J. Percy Priest, Cordell Hull and Laurel.
The projects were developed by the U.S. Army Corps of Engineers for
the comprehensive development of the Cumberland River Basin. Project
purposes include hydroelectric power, navigation, flood control,
recreation, pollution abatement, and economic development. Collectively
the projects provide 5.1 million acre feet of flood control storage and
380 miles of navigation channel. Each of the nine reservoirs have
specific recreational facilities which attract millions of visitors
annually. The total installed capacity of the projects is 914 MW which
generate an average of 3,271,000 MWH annually.
Issued in Washington, DC, June 29, 1994.
William H. White,
Deputy Secretary.
Order Confirming and Approving Power Rates on an Interim Basis
In the Matter of: Southeastern Power Administration--Cumberland
Basin Projects' Power Rates. Rate Order No. SEPA-33.
Pursuant to Sections 302(a) and 301(b) 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. 0204-108, effective
May 30, 1986, 51 F.R. 19744 (May 30, 1986), the Secretary of Energy
delegated to the Administrator the authority to develop power and
transmission rates, and delegated to the Under Secretary the authority
to confirm, approve, and place in effect such rates on an interim basis
and delegated to the Federal Energy Regulatory Commission (FERC) the
authority to confirm, approve, and place in effect on a final basis or
to disapprove rates developed by the Administrator under the
delegation. On November 4, 1993, the Secretary of Energy issued
Amendment No. 3 to Delegation Order No. 0204-108, [58 F.R. 59716;
November 10, 1993] granting the Deputy Secretary authority to confirm,
approve, and place into effect Southeastern's rates on an interim
basis. This rate order is issued pursuant to the delegation to the
Deputy Secretary.
Background
Projects
Power from 8 of the 9 projects in the Cumberland Basin Projects
(Wolf Creek, Center Hill, Dale Hollow, Old Hickory, Cheatham, Barkley,
J. Percy Priest, Cordell Hull and Laurel) is sold through the
transmission system of the Tennessee Valley Authority (TVA). TVA has
contracted to purchase 405,000 KW to preference customers outside the
service area and to firm up the 70,000 KW from the Laurel Project. The
Laurel Project is located in the service area of and delivered to East
Kentucky Power Cooperative. Cumberland Basin power not sold to East
Kentucky Power for the use of its preference customers is sold to eight
municipalities in the Mississippi Power and Light area via a contract
with the Municipal Energy Agency of Mississippi; seven cooperatives in
the Mississippi Power and Light area via a contract with South
Mississippi Electric Power Association; Big Rivers Electric
Corporation; the City of Henderson Kentucky; East Kentucky power
Cooperative; Southern Illinois Power Cooperative; and one municipality
and two cooperatives in the western portion of the Carolina Power and
Light Company (CP&L) service area via transmission over TVA's and
CP&L's transmission system. Currently 62 MW of the power to be marketed
outside the TVA area is temporarily being marketed to TVA for the use
of its preference customers pending completion of arrangements to
market the power to preference customers in the Kentucky Utilities
Company area. The projects were developed by the U. S. Army Corps of
Engineers for the comprehensive development of the Cumberland River
Basin. Project purposes include hydroelectric power, navigation, flood
control, recreation, pollution abatement, and economic development.
Collectively the projects provide 5.1 million acre feet of flood
control storage and 380 miles of navigation channel. Each of the 9
projects have specific recreation facilities which attract millions of
visitors annually. Total installed capacity of the projects is 914 MW
which generate an average of 3,271,000 MWH annually. The power
generated at the projects in operation during fiscal year 1993 was sold
to 293 customers. Southeastern cannot furnish the entire capacity and
energy needs of any of its customers. Capacity and energy requirements
in excess of that available from Southeastern's resources must be
acquired from other sources.
Transmission
Under the Notice of Issuance Final Power Marketing Policy,
Cumberland System of Projects 58 FR 41762; August 5, 1993, 475 MW of
capacity is made available to SEPA's customers outside the TVA region
from the Cumberland Projects. Under TVA's firm commitment of
transmission service provided for in the marketing agreement, TVA makes
the amounts SEPA schedules (as much of the 475 MW as Southeastern
indicates) available across the TVA system to the points selected by
Southeastern on the periphery of the system. Under the Power Marketing
policy, 405 MW is allocated to TVA for the benefit of 160 preference
customers located on the TVA system. According to the marketing policy,
TVA is to receive a monthly credit for delivering Cumberland system
capacity and energy to SEPA's preference customers outside the TVA
region. The credit is applied each month against charges to TVA for
Cumberland River system capacity and energy provided TVA under the
marketing agreement. Since 1984 this monthly credit has been $500,000
for 475 MW to be delivered to the periphery of the TVA system. This
monthly credit is reduced for each MW of capacity that Southeastern is
unable to sell to its customers outside the TVA area. Therefore, TVA's
monthly credit has been reduced in the past by $80,600 for the 62 MW of
capacity that SEPA has been unable to sell due to Kentucky Utilities
Company's refusal to wheel such power to preference customers located
in its area. TVA has received an annual credit of approximately
$5,032,800 which will increase to $6,032,800 under the negotiated
settlement which is described in this document.
Current Rates
Power from the Cumberland Basin Projects is presently sold under
Wholesale Power Rate Schedules CBR-1-B, CSI-1-B, CEK-1-B, CC-1-C, CM-1-
B, CK-1-B and CTV-1-B. Wholesale Power Rate Schedules CBR-1-B, CSI-1-B,
CEK-1-B, CC-1-C, CM-1-B, CK-1-B and CTV-1-B were confirmed and approved
by the Federal Energy Regulatory Commission by order issued September
16, 1989, for a period beginning July 1, 1989, and ending June 30,
1994.
Discussion
System Repayment
An examination of Southeastern's system power repayment study
prepared in May 1994 for the Cumberland Basin Projects reveals that
with an annual revenue increase of $2,211,000, over the current
revenues shown in the previous February 1994 repayment study, all
system power costs are paid within their repayment life. Wholesale
Power Rate Schedules CBR-1-C, CSI-1-C, CEK-1-C, CC-1-D, CM-1-C, CK-1-C
and CTV-1-C are designed to produce adequate revenue to recover all
system power costs on a timely basis. The Administrator of Southeastern
has certified that the rates are consistent with the applicable law and
that they are the lowest possible rates to customers consistent with
sound business principles.
Rate Design
A repayment study was prepared using present contract rates. The
repayment study demonstrated that rates were not high enough to repay
all investments within their repayment life. Southeastern proposed a 6
percent rate increase that would meet repayment criteria. The Tennessee
Valley Authority (TVA) responded by increasing their transmission
charge from $6 to $12.1 million. Southeastern held a Public Comment
forum on March 10, 1994 to give opportunity for review and comment of
proposed rates. Southeastern announced a revised rate increase of 24
percent for all customers. At the Public Comment Forum TVA asserted
that the rate design used to calculate the 24 percent rate increase
failed to compensate TVA for the use of its transmission facilities and
that TVA customers were paying for transmission service twice.
The 160 preference customers inside TVA are represented by the
Tennessee Valley Public Power Association (TVPPA). The TVPPA is a
service organization that, among other duties, negotiates rates with
TVA. Power requirements of TVPPA members are provided exclusively by
TVA.
The TVPPA rates committee questioned the allocation of costs
between capacity and energy. Previous rate filings allocated 40 percent
of the generation costs to capacity and 60 percent to energy. The 40/60
allocation was criticized by TVA for allocating too much of the
generation cost to energy. TVPPA felt that more of the cost should be
placed on the capacity component of the rate and that the energy
component should cover O&M. Customers outside the TVA system criticized
Southeastern's Cumberland marketing plan for giving too much energy to
TVA.
After the public comment forum Southeastern met with TVA and the
outside customers in an attempt to negotiate a settlement. Southeastern
agreed to change the rate design. The new rate design eliminates the
capacity/energy split and allocates the TVA transmission charge to the
outside customers. All customers pay a capacity charge that includes
1500 hours energy with each kilowatt of capacity. Residual energy is
sold to TVA with an additional energy charge. This eliminated the
disagreement regarding the 40/60 split.
Initially TVA proposed a $12.1 million transmission charge.
Southeastern and TVA agreed to a negotiated settlement of $7 million
per year for transmission. The settlement results in a 5.1% rate
increase to TVA and a 9.5% increase to outside customers. This amount
is reduced further by a $967,200 credit for power that is allocated,
but not delivered to customers in the Kentucky Utilities service area.
While neither TVA nor outside customers are completely satisfied with
this settlement, Southeastern does not believe either will intervene
against this rate.
A copy of the Public Comments and Responses (Exhibit A-5 of the
Rate Filing) is attached to clarify any issues that may not be fully
addressed in the main body of this document.
Public Notice and Comment
Opportunities for public review and comment on Wholesale Power Rate
Schedules CBR-1-C, CSI-1-C, CEK-1-C, CC-1-D, CM-1-C, CK-1-C and CTV-1-
C, proposed for use during the period July 1, 1994, through June 30,
1999, were announced by Notice published in the Federal Register on
February 7, 1994. All customers were notified by mail. A Public
Information and Comment Forum was held in Nashville, Tennessee, on
March 10, 1994, and written comments were invited by the Notice through
May 3, 1989. Oral comments were presented at the forum and written
comments were received prior to May 10, 1994. There were twelve (12)
substantive comments received and all comments were evaluated. Comments
and questions from four sources were received at the Public Comment
Forum held in Nashville on March 10, 1994. These are included in the
Forum transcripts which are included as exhibit A-4. Written comments
and questions from four sources were received by mail and facsimile
during the comment period and are attached. The comments were received
pursuant to Federal Register Notice 59 F.R. 5581 dated February 7,
1994. The following substantive issues contained in the comments were
considered. A summary of written comments, written responses, and the
oral comments follows this discussion of the substantive issues.
Comment 1: The allocation of the TVA transmission credit does not
recognize that the schedules to outside preference customers cannot be
met without the entire TVA transmission system and fails to compensate
TVA for the use of its transmission facilities for the delivery of
these schedules.
Response: Lacking its own transmission system, transmission
services are required from TVA to deliver capacity and energy
allocations to customers outside the TVA system. Rates that have been
in effect since July 1, 1989 allocate some of the TVA transmission
charge to the TVA area customers. This rate design was originally
proposed in order to reallocate what Southeastern viewed as an excess
transmission charge by TVA. The rate design was not contested at FERC
by TVA. Southeastern's rate proposal that is effective July 1, 1994
includes a $7,000,000 credit for TVA's transmission service. TVA area
customers will not pay a portion of this transmission charge and the
entire amount will be paid by customers outside the TVA system. This is
the amount agreed to by Southeastern and TVA after weeks of
negotiations subsequent to the March 10, 1994 public information and
comment forum. This issue is further discussed in the Rate Adjustment
Process and Design section of the Rate Order.
Comment 2: TVA's customers are being charged for service provided
by their own system. In effect, they are paying for a portion of the
TVA system twice.
Response: The issue of paying for a portion of the TVA system twice
was reconciled in the negotiated settlement. Customers outside of the
TVA system bear the full amount of transmission services provided by
TVA.
Comment 3: The TVA transmission cost of $12 million which was
originally proposed by TVA resulted in a rate of $2 per kilowatt per
month and 1 mill per kilowatt-hour. This rate is too high, not
justified, and would not pass FERC scrutiny.
Response: The negotiated settlement between Southeastern and TVA
allocated reduced the transmission cost from $12 million to $7 million.
Comment 4: SEPA should not include TVA's increase in their charge
for transmission services in SEPA's rates until preference customers
have had ample opportunity to make comments or intervene in some way.
Response: This objection was addressed in the negotiated rate
settlement.
Comment 5: TVA is overcompensated on the amount of energy they get
with each KW of capacity they receive.
Response: This comment is understood to address the Cumberland
Basin Power Marketing Policy which sets forth, among other things,
capacity and energy allocations in the Cumberland Basin. The Power
Marketing Policy is set forth in 58 F.R. 41702 published August 5,
1993. Cumberland Basin System marketing arrangements provide all
customers with 1,500 hours of energy for each kilowatt of capacity
allocated by Southeastern. TVA receives 1,500 hours of energy per KW
and is also allowed to purchase any residual system energy which
averages 5,000 hours per KW per year.
Comment 6: Energy should be prorated to all customers and the rate
increase should be shared among all customers.
Response: Power allocation is addressed in the power marketing
policy for the Cumberland system and was not addressed in this rate
filing. As the result of the negotiated settlement, the transmission
charge to outside customers was reduced from $12 million to $7 million
per year.
Comment 7: East Kentucky should not pay TVA wheeling on the portion
of its capacity allocation it receives at the Laurel project.
Response: The Laurel Project is located in the service territory of
East Kentucky Power Cooperative. All of the output of Laurel is
delivered to East Kentucky and therefore no other customer receives any
benefit from this project. Even though TVA does not have an
interconnection with the Laurel Project bus bar, TVA has
interconnections with East Kentucky that facilitate the delivery of
power from elsewhere in the system to provide firming support.
The Laurel Project was integrated into the Cumberland Basin System
for repayment in 1984. While the Laurel Project is the highest cost
project in the Cumberland Basin System, financially integrating the
project into the system effectively lowers capacity and energy charges
for East Kentucky and raises the charges for other preference
customers. Including power from the Laurel Project in the allocation of
the TVA transmission charge has a similar but opposite impact. The
transmission charge is lowered for other customers and increased for
East Kentucky.
The net impact of these complicated financial and physical
arrangements provides the lowest possible rates to all of the
preference customers in the Cumberland Basin system within the meaning
of Section 5 of the Flood Control Act of 1944.
Comment 8: The Corps O&M costs are too high.
Response: The Flood Control Act of 1944 requires Southeastern to
recover Corps Operation & Maintenance costs allocated to power. Such
costs are included in this rate. Southeastern agrees that these costs
are too high and will continue to work with the customers and the Corps
in an effort to lower the O&M costs on Corps hydropower projects.
Comment 9: Southeastern's deviation from standard allocation method
for allocating generation costs places an undue cost burden on
preference customers in the TVA area.
Response: Southeastern believes that a standard allocation method,
where fixed costs are charged to capacity and variable costs are
charged to energy, is inappropriate for a hydro system because most of
the costs of a hydro system are fixed. In designing the proposed rates
in 1984, Southeastern compared utilities in the TVA area and attempted
to emulate the capacity energy split used in their sales for resale. In
1984 Southeastern determined that, on average, most utilities in the
TVA area charged 40 per cent to capacity and 60 per cent to energy. We
continued this arrangement in 1989. The 1994 rate design, agreed to as
the result of the negotiated settlement, does not continue the 60/40
split but establishes a rate for a kilowatt of capacity that includes
1,500 kwh's of energy. Southeastern believes that this new rate design
will eliminate the disagreement between TVA and SEPA on capacity energy
split of costs.
Comment 10: Since the resources are used primarily for peaking
purposes, a greater portion of the rate should be allocated to the
fixed or demand component.
Response: Power is marketed from the Cumberland Basin System for
different purposes. In accordance with the Final Power Marketing Policy
for the Cumberland System of Projects adopted August 5, 1993, 58 F.R.
41762, customers outside the TVA system receive a base of 1,500 hours
of energy per kilowatt per year, which makes their allocation peaking
power. Similarly, in accordance with said policy, customers inside the
TVA system receive an average of 5,000 additional hours energy per kw
of capacity, which makes their power similar to a combination of
peaking and intermediate power. Allocating all costs on the assumption
that all power from the Cumberland Basin System is a peaking resource
would have the effect of shifting costs from the inside customers to
the outside customers. Southeastern does not believe that this would be
equitable. As a result of the settlement, Southeastern developed a new
rate design which charges customers inside and outside TVA a base rate
for a KW of capacity which includes 1,500 KWH. An excess energy charge
is levied on customers inside TVA that receive residual system energy.
Comment 11: The methodology used by Southeastern in determining the
capacity/energy split includes power sales that are not comparable to
the type of sales made by Southeastern from the Cumberland River
System.
Response: Southeastern has developed a new rate design which
deletes the separate change for capacity and energy and eliminates this
argument.
Environmental Impact
Southeastern has reviewed the possible environmental impacts of
this rate adjustment and has concluded that the increased rates would
not significantly impact the quality of the human environment within
the meaning of the National Environmental Policy Act of 1969. The
proposed rate adjustment is not a major Federal action for which
preparation of an Environmental Impact Statement is required.
Availability of Information
Information regarding these rate schedules, including studies, and
other supporting documentation is available for public review in the
offices of Southeastern Power Administration, Samuel Elbert Building,
Elberton, Georgia 30635, and in the Washington Liaison Office, James
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC
20585.
Submission to the Federal Energy Regulatory Commission
The rates hereinafter confirmed and approved on an interim basis,
together with supporting documents, will be submitted promptly to the
Federal Energy Regulatory Commission for confirmation and approval on a
final basis for a period beginning July 1, 1994, and ending no later
than June 30, 1999.
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 July 1, 1994, attached Wholesale Power Rate
Schedules CBR-1-C, CSI-1-C, CEK-1-C, CC-1-D, CM-1-C, CK-1-C and CTV-1-
C. The rate schedules shall remain in effect on an interim basis
through June 30, 1999, unless such period is extended or until the
Federal Energy Regulatory Commission confirms and approves it or
substitute rate schedules on a final basis.
Issued in Washington, DC, June 29, 1994.
William H. White,
Deputy Secretary.
Wholesale Power Rate Schedule CTV-1-C
Availability: This rate schedule shall be available to the
Tennessee Valley Authority (hereinafter called TVA).
Applicability: This rate schedule shall be applicable to electric
capacity and energy generated at the Dale Hollow, Center Hill, Wolf
Creek, Old Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell
Hull Projects (all of such projects being hereafter called collectively
the ``Cumberland Projects'') and the Laurel Project sold under
agreement between the Department of Energy and TVA.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a frequency of
approximately 60 Hertz at the outgoing terminals of the Cumberland
Projects' switchyards.
Monthly Rates: The monthly rate for capacity and energy sold under
this rate schedule shall be:
Demand Charge: $1.668 per kilowatt/month of total demand as
determined by the agreement between the Department of Energy and TVA.
Energy Charge: None.
Additional Energy Charge: 7.247 mills per kilowatt-hour.
Energy to be Made Available: The Department of Energy shall
determine the energy that is available from the projects for
declaration in the billing month.
To meet the energy requirements of the Department of Energy's
customers outside the TVA area (hereinafter called Other Customers),
749,400 megawatt-hours of net energy shall be available annually
(including 36,900 megawatt-hours of annual net energy to supplement
energy available at Laurel Project) provided, that if additional energy
is required to make a marketing arrangement viable for other customers
which do not own generating facilities and which are within service
areas of Kentucky Utilities Company and Carolina Power & Light Company,
Western Division, such additional energy required shall be made
available from the Cumberland Projects and shall not exceed 300
kilowatt-hours per kilowatt per year. The energy requirement of the
Other Customers shall be available annually, divided monthly such that
the maximum available in any month shall not exceed 220 hours per
kilowatt of total Other Customers contract demand, and the minimum
amount available in any month shall not be less than 60 hours per
kilowatt of total Other Customers demand.
In the event that any portion of the capacity allocated to Other
Customers is not initially delivered to the Other Customers as of the
beginning of a full contract year (July through June), the 1500 hours,
plus any such additional energy required as discussed above, shall be
reduced 1/12 for each month of that year prior to initial delivery of
such capacity.
The energy scheduled by TVA for use within the TVA System in any
billing month shall be the total energy delivered to TVA less (1) an
adjustment for fast or slow meters, if any, (2) an adjustment for
Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month
which is delivered to TVA under the agreement from the Cumberland
Projects without charge to TVA, (3) the energy scheduled by the
Department of Energy in said month for the Other Customers plus losses
of two (2) percent, and (4) station service energy furnished by TVA.
Each kw of capacity received by TVA includes 1500 kwh of energy.
Energy received in excess of 1500 kwh will be subject to an additional
energy charge identified in the monthly rates section of this rate
schedule.
Billing Month: The billing month for capacity and energy sold under
this schedule shall end at 2400 hours CDT or CST, whichever is
currently effective, on the last day of each calendar month.
Contract Year: For purposes of this rate schedule, a contract year
shall be as in Section 13.1 of the Southeastern Power Administration--
Tennessee Valley Authority Contract.
Service Interruption: When delivery of capacity to TVA is
interrupted or reduced due to conditions on the Department of Energy's
system which are beyond its control, the Department of Energy will
continue to make available the portion of its declaration of energy
that can be generated with the capacity available.
For such interruption or reduction (exclusive of any restrictions
provided in the agreement) due to conditions on the Department of
Energy's system which have not been arranged for and agreed to in
advance, the demand charge for scheduled capacity made available to TVA
will be reduced as to the kilowatts of such scheduled capacity which
have been so interrupted or reduced for each day in accordance with the
following formula:
----------------------------------------------------------------------------------------------------------------
Monthly capacity charge Agreement capacity
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12 x Number of days in billing x 880,000 kilowatts.
hours in any calendar day. month.
----------------------------------------------------------------------------------------------------------------
The agreement capacity related to the 76,000 kilowatts of capacity
allocated to the Other Customers in the Carolina Power & Light Company
and Kentucky Utilities service areas shall, irrespective of sale to
Other Customers, remain in effect in the formula throughout the term of
this rate schedule.
Power Factor: TVA shall take capacity and energy from the
Department of Energy at such power factor as will best serve TVA's
system from time to time; provided, that TVA shall not impose a power
factor of less than .85 lagging on the Department of Energy's
facilities which requires operation contrary to good operating practice
or results in overload or impairment of such facilities.
Dated: July 1, 1994.
Wholesale Power Rate Schedule CBR-1-C
Availability: This rate schedule shall be available to Big Rivers
Electric Corporation and includes the City of Henderson, Kentucky,
(hereinafter called the Customer).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of sixty hertz. The power shall be delivered at nominal
voltages of 13,800 volts and 161,000 volts to the transmission system
of Big Rivers Electric Corporation.
Points of Delivery: Capacity and energy delivered to the Customer
will be delivered at points of interconnection of the Customer at the
Barkley Project Switchyard, at a delivery point in the vicinity of the
Paradise steam plant and at such other points of delivery as may
hereafter be agreed upon by the Government and TVA.
Monthly Rate: The monthly rate for capacity and energy sold under
this rate schedule shall be:
Demand charge: $2.738 per kilowatt/month of total contract demand.
Energy Charge: None.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the customer from the Projects through
the customer's interconnections with TVA and the customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly such that the maximum amount
scheduled in any month shall not exceed 220 hours per kilowatt of the
customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the customer's
contract demand. The customer may request and the Government may
approve energy scheduled for a month greater than 220 hours per
kilowatt of the customer's contract demand; provided, that the combined
schedule of all SEPA customers outside TVA and served by TVA does not
exceed 220 hours per kilowatt of the total contract demands of these
customers.
Billing Month: The billing month for power sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
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 TVA
on its side of the delivery point.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
----------------------------------------------------------------------------------------------------------------
Monthly capacity charge Contract demand
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12 x Number of days in billing x *880,000 kilowatts.
hours in any calendar day. month.
----------------------------------------------------------------------------------------------------------------
Dated: July 1, 1994.
Wholesale Power Rate Schedule CSI-1-C
Availability: This rate schedule shall be available to Southern
Illinois Power Cooperative (hereinafter the Customer).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of sixty hertz. The power shall be delivered at nominal
voltages of 13,800 volts and 161,000 volts to the transmission system
of Big Rivers Electric Corporation.
Points of Delivery: Capacity and energy delivered to the Customer
will be delivered at points of interconnection of the Customer at the
Barkley Project Switchyard, at a delivery point in the vicinity of the
Paradise steam plant and at such other points of delivery as may
hereafter be agreed upon by the Government and TVA.
Monthly Rate: The monthly rate for capacity and energy sold under
this rate schedule shall be:
Demand Charge: $2.738 per kilowatt/month of total contract demand.
Energy Charge: None.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the customer from the Projects through
the customer's interconnections with TVA and the customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly such that the maximum amount
scheduled in any month shall not exceed 220 hours per kilowatt of the
customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the customer's
contract demand. The customer may request and the Government may
approve energy scheduled for a month greater than 220 hours per
kilowatt of the customer's contract demand; provided, that the combined
schedule of all SEPA customers outside TVA and served by TVA does not
exceed 220 hours per kilowatt of the total contract demands of these
customers.
Billing Month: The billing month for power sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
----------------------------------------------------------------------------------------------------------------
Monthly capacity charge Contract demand
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12 x Number of days in billing x *880,000 kilowatts.
hours in any calendar day. month.
----------------------------------------------------------------------------------------------------------------
Dated: July 1, 1994.
Wholesale Power Rate Schedule CEK-1-C
Availability: This rate schedule shall be available to East
Kentucky Power Cooperative (hereinafter called the Customer).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and power available from the Laurel
Project and sold in wholesale quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of sixty hertz. The power shall be delivered at nominal
voltages of 161,000 volts to the transmission systems of the Customer.
Points of Delivery: The points of delivery will be the 161,000 volt
bus of the Wolf Creek Power Plant and the 161,000 volt bus of the
Laurel Project. Other points of delivery may be as agreed upon.
Monthly Rate: The monthly rate for capacity and energy sold under
this rate schedule from the Cumberland Projects shall be:
Demand Charge: $2.738 per kilowatt/month of total contract demand.
Energy Charge: None.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the customer from the Projects through
the customer's interconnections with TVA and the customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand plus 369 kilowatt-
hours of energy delivered for each kilowatt of contract demand to
supplement energy available at the Laurel Project. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly such that the maximum amount
scheduled in any month shall not exceed 220 hours per kilowatt of the
customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the customer's
contract demand. The customer may request and the Government may
approve energy scheduled for a month greater than 220 hours per
kilowatt of the customer's contract demand; provided, that the combined
schedule of all SEPA customers outside TVA and served by TVA does not
exceed 220 hours per kilowatt of the total contract demands of these
customers.
Billing Month: The billing month for power sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
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 TVA
on its side of the delivery point.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
----------------------------------------------------------------------------------------------------------------
Monthly capacity charge Contract demand
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12 x Number of days in billing x 880,000 kilowatts.
hours in any calendar day. month.
----------------------------------------------------------------------------------------------------------------
Dated: July 1, 1994.
Wholesale Power Rate Schedule CM-1-C
Availability: This rate schedule shall be available to the South
Mississippi Electric Power Association and Municipal Energy Agency of
Mississippi (hereinafter called the Customers).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of sixty hertz. The power shall be delivered at nominal
voltages of 161,000 volts to the transmission systems of Mississippi
Power and Light.
Points of Delivery: The points of delivery will be at
interconnection points of the Tennessee Valley Authority system and the
Mississippi Power and Light system. Other points of delivery may be as
agreed upon.
Monthly Rate: The monthly rate for capacity and energy sold under
this rate schedule shall be:
Demand Charge: $2.738 per kilowatt/month of total contract demand.
Energy Charge: None.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the Customer from the Projects through
the Customer's interconnections with TVA and the Customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly such that the maximum amount
scheduled in any month shall not exceed 220 hours per kilowatt of the
Customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the Customer's
contract demand. The Customer may request and the Government may
approve energy scheduled for a month greater than 220 hours per
kilowatt of the Customer's contract demand; provided, that the combined
schedule of all SEPA Customers outside TVA and served by TVA does not
exceed 220 hours per kilowatt of the total contract demands of these
Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
Billing Month: The billing month for power sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective on
the last day of each calendar month.
Service Interruption: When delivery of capacity is interrupted or
reduced due to conditions on the Administrator's system beyond his
control, the Administrator will continue to make available the portion
of his declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
----------------------------------------------------------------------------------------------------------------
Monthly capacity charge Contract demand
----------------------------------------------------------------------------------------------------------------
Number of kilowatts unavailable for at least 12 x Number of days in billing x 880,000 kilowatts.
hours in any calendar day. month.
----------------------------------------------------------------------------------------------------------------
Dated: July 1, 1994.
Wholesale Power Rate Schedule CC-1-D
Availability: This rate schedule shall be available to public
bodies and cooperatives served through the facilities of Carolina Power
& Light Company, Western Division (hereinafter called the Customers).
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of sixty hertz. The power shall be delivered at nominal
voltages of 161,000 volts to the transmission system of Carolina Power
& Light Company, Western Division.
Points of Delivery: The points of delivery will be at
interconnecting points of the Tennessee Valley Authority system and the
Carolina Power & Light Company, Western Division system. Other points
of delivery may be as agreed upon.
Monthly Rate: The monthly rate for capacity and energy sold under
this rate schedule shall be:
Demand Charge: $3.116 per kilowatt/month of total contract demand.
Energy Charge: None.
Transmission Charge: $1.6254 per kilowatt of total contract demand.
The transmission rate is subject to annual adjustment on April 1 of
each year and will be computed subject to the formula in Appendix A
attached to the Government--Carolina Power & Light Company contract.
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 Carolina Power & Light Company
(less six percent (6%) losses). The Customer's contract demand and
accompanying energy allocation will be divided pro rate among its
individual delivery points served from the Carolina Power & Light
Company's, Western Division transmission system.
Billing Month: The billing month for power sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Dated: July 1, 1994.
Wholesale Power Rate Schedule CK-1-C
Availability: This rate schedule shall be available to public
bodies served through the facilities of Kentucky Utilities Company,
(hereinafter called the Customers.)
Applicability: This rate schedule shall be applicable to electric
capacity and energy available from the Dale Hollow, Center Hill, Wolf
Creek, Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service: The electric capacity and energy supplied
hereunder will be three-phase alternating current at a nominal
frequency of sixty hertz. The power shall be delivered at nominal
voltages of 161,000 volts to the transmission systems of Kentucky
Utilities Company.
Points of Delivery: The points of delivery will be at
interconnecting points between the Tennessee Valley Authority system
and the Kentucky Utilities Company system. Other points of delivery may
be as agreed upon.
Monthly Rate: The monthly rate for capacity and energy sold under
this rate schedule shall be:
Demand charge: $2.738 per kilowatt/month of total contract demand.
Energy Charge: None.
Additional Energy Charge: 7.247 mills per kilowatt-hour.
Transmission Charge: The transmission charge will be that
negotiated between the Government and Kentucky Utilities Company and
will be subject to adjustment according to the terms of the contracts.
Energy to be Furnished by the Government: The Government shall make
available each contract year to the Customer from the Projects through
the Customer's interconnections with TVA and the Customer will schedule
and accept an allocation of 1,500 kilowatt-hours of energy delivered at
the TVA border for each kilowatt of contract demand. A contract year is
defined as the 12 months beginning July 1 and ending at midnight June
30 of the following calendar year. The energy made available for a
contract year shall be scheduled monthly such that the maximum amount
scheduled in any month shall not exceed 220 hours per kilowatt of the
Customer's contract demand and the minimum amount scheduled in any
month shall not be less than 60 hours per kilowatt of the Customer's
contract demand. The Customer may request and the Government may
approve energy scheduled for a month greater than 220 hours per
kilowatt of the Customer's contract demand; provided, that the combined
schedule of all SEPA Customers outside TVA and served by TVA does not
exceed 220 hours per kilowatt of the total contract demands of these
Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced 1/12 for each month of that year prior to initial delivery of
such capacity.
For billing purposes, each kilowatt of capacity will include 1500
kilowatt-hours energy per year. Customers will pay for additional
energy at the additional energy rate.
Billing Month: The billing month for power sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective on
the last day of each calendar month.
[FR Doc. 94-16991 Filed 7-12-94; 8:45 am]
BILLING CODE 6450-01-P
