[Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
[Notices]
[Pages 42560-42563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20284]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Notice of Amended Rate Schedule
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Amended Rate Schedule CV-F7.
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SUMMARY: Notice is given of the confirmation and approval by the Deputy
Secretary of the Department of Energy of Amended Rate Schedule CV-F7
from the Central Valley Project (CVP) of the Western Area Power
Administration (Western) into effect on an interim basis. The interim
Amended Rate Schedule CV-F7, will remain in effect on an interim basis
until the Federal Energy Regulatory Commission (FERC) confirms,
approves, and places it into effect on a final basis or until it is
replaced by another rate schedule.
Rate Schedule CV-F7, Schedule for Rates for Commercial Firm-Power
Service under Rate Order No. WAPA-59, was approved by FERC on September
22, 1993, under FERC Docket No. EF93-5011-000. The rates were placed in
effect for the period beginning May 1, 1993, through April 30, 1998.
The methodology for the revenue adjustment clause (RAC) was
included in Rate Schedule CV-F7 and included provisions for a $20
million maximum allocation of the RAC credit or surcharge. The Amended
Rate Schedule CV-F7 modifies the maximum allocation of the RAC credit
of $20 million by the amount of the Pacific Gas and Electric Company
(PG&E) refund credit applied to the Western power bills for the fiscal
year. The $20 million maximum allocation for the RAC surcharge remains
unchanged, as do all other provisions of CVP Rate Schedule CV-F7.
DATES: Amended Rate Schedule CV-F7 will be placed into effect on an
interim basis prior to October 1, 1995, and will be in effect until
FERC confirms, approves, and places the rate schedule in effect on a
final basis through April 30, 1998, the remaining time period of the
current Rate Schedule CV-F7, or until the rate schedule is superseded.
FOR FURTHER INFORMATION CONTACT:
Mr. James C. Feider, Area Manager, Sacramento Area Manager, Western
Area Power Administration, 114 Parkshore Drive, Folsom, CA 95630, (916)
649-4418
Mr. Robert Fullerton, Acting Director, Division of Power Marketing,
Western Area Power Administration, P.O. Box 3402, Golden, CO 80401-
0098, (303) 275-1610
Mr. Joel Bladow, Assistant Administrator for Washington Liaison, Power
Marketing Liaison Office, Room 8G-027, Forrestal Building, 1000
Independence Avenue SW., Washington, DC 20585-0001, (202) 586-5581
SUPPLEMENTARY INFORMATION: The RAC compares projected net revenue with
actual net revenue for each fiscal year. If the net difference is
positive, a RAC credit is applied to the customers' power bills during
the next January 1 to September 30 period. If the net difference is
negative, a RAC surcharge is applied to customers' power bills in an
amount equal to any deficit in repayment of annual expenses plus a
minimum investment payment equal to the lesser of 1 percent of unpaid
investment or projected investment payment. The maximum allocation of a
RAC credit or surcharge on customers' power bills is $20 million
annually.
In February 1992, Western and the PG&E entered into a settlement
agreement (Settlement) which provided for annual reconciliation of
estimated energy and capacity rates based on actual PG&E thermal costs.
To date, the Settlement has resulted in refunds to Western which are
applied as credits against amounts owed by Western to PG&E. The
application of the credits reduces Western's purchase power expense
which may increase Western's net revenue. Since the current RAC
methodology provides for a $20 million cap, Western's customers may not
realize the full benefit of the Settlement amounts.
Discussions on the proposed amendment to the RAC methodology were
initiated at a customer meeting held on February 14, 1995. Western
received favorable comments following the meeting, and pursued
development of the proposed amendment. Representatives from the CVP
customer base reviewed and supported the amendment. On April 10, 1995,
Western sent a letter to all CVP customers requesting written comments
on the proposed amendment and establishing a comment period through May
15, 1995. Western received three written comments during the comment
period. All comments supported the interim amendment, with one comment
requesting that future savings resulting from changes in Western's
purchase
[[Page 42561]]
power contracts also be included in the RAC methodology. Western is
planning a rate adjustment to accommodate any change in purchase power
contracts.
The intent of amending the RAC would allow the net revenue,
resulting from the PG&E/Western rate reconciliation, to be passed on to
Western's customers as a RAC credit if there is no impact on CVP
projected repayment. The extent of the amendment would change the
maximum allocation of the RAC credit of $20 million by the amount of
the PG&E refund credit applied to the Western power bills for the
fiscal year. The current $20 million maximum allocation for the RAC
surcharge will not be changed.
The RAC amendment does not change the rates, power repayment study,
or any other documentation filed with the original Rate Order No. WAPA-
59.
Confirmation, approval, and placement of Amended Rate Schedule CV-
F7 into effect on an interim basis, is issued, and the Amended Rate
Schedule CV-F7 will be submitted promptly to FERC for confirmation and
approval on a final basis.
Issued in Washington, DC, August 8, 1995.
Bill White,
Deputy Secretary.
Order Confirming, Approving, and Placing the Central Valley Project
Amended Rate Schedule CV-F7 Into Effect on an Interim Basis
In the matter of: Western Area Power Administration Amended Rate
Schedule CV-F7, Central Valley Project.
August 8, 1995.
The original Rate Schedule CV-F7, for commercial firm power rates,
was established pursuant to section 302(a) of 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 (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
system 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; 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). Existing DOE procedures
for public participation in power rate adjustments are located at 10
CFR Part 903.
Acronyms and Definitions
As used in this rate order, the following acronyms and definitions
apply:
CVP: Central Valley Project.
DOE: U. S. Department of Energy.
FERC: Federal Energy Regulatory Commission.
FY: Fiscal year.
Net Revenue: Revenue remaining after paying all annual expenses.
PG&E: Pacific Gas and Electric Company.
RAC: Revenue Adjustment Clause.
Rate Schedule CV-F7: The current rate schedule for commercial firm
power service, approved by FERC on September 22, 1993, under FERC
Docket No. EF93-5011-000.
Secretary: Secretary of Energy.
Western: Western Area Power Administration.
Effective Date
The Amended Rate Schedule CV-F7 will become effective on an interim
basis prior to October 1, 1995, and will be in effect pending FERC's
approval on a final basis for a 2\1/2\-year period, the remaining
effective period for Rate Schedule CV-F7, or until superseded.
Public Notice and Comment
The Procedures for Public Participation in Power and Transmission
Rate Adjustments and Extensions, 10 CFR Part 903, have been followed by
Western in the development of this amended rate schedule. The following
summarizes the steps Western took to ensure involvement of interested
parties in the rate process:
1. On February 14, 1995, Western proposed the amendment to the RAC
methodology at a customer meeting.
2. On April 10, 1995, Western sent a letter to all CVP customers
requesting written comments on the proposed amendment and established a
comment period through May 15, 1995.
Discussion
The RAC, included under Rate Schedule CV-F7, compares projected net
revenue with actual net revenue for a FY. If the net difference is
positive, a RAC credit is applied to the customers' power bills during
the next January 1 to September 30 period. If the difference is
negative, a RAC surcharge is applied to the customers' power bills in
an amount equal to any deficit in repayment of annual expenses plus a
minimum investment payment equal to the lesser of 1 percent of the
unpaid investment or projected investment payment. Under Rate Schedule
CV-F7, the maximum allocation for RAC credits or surcharges is $20
million.
Basis for Amendment to Current Rate Schedule CV-F7 in February
1992, Western and the PG&E entered into a settlement agreement
(Settlement) which provided for annual reconciliation of estimated
energy and capacity rates based on actual PG&E thermal costs. To date,
the Settlement has resulted in refunds to Western which are applied as
credits against amounts owed by Western to PG&E. The application of the
credits reduces Western's purchase power expense which may increase
Western's net revenue. Since the current RAC methodology provides for a
$20 million cap, Western's customers may not realize the full benefit
of the Settlement amounts.
The intent of amending the RAC would allow the net revenue,
resulting from the PG&E/Western rate reconciliation, to be passed on to
Western's customers as a RAC credit if there is no impact on CVP
projected repayment. The extent of the amendment would change the
maximum allocation of the RAC credit of $20 million by the amount of
the PG&E refund credit applied to the Western power bills for the
fiscal year. The current $20 million maximum allocation for the RAC
surcharge will not be changed.
Comments
During the 30-day comment period, Western received three written
comments regarding the proposed change in the RAC. All three commentors
agreed with the proposal, with one commentor additionally requesting
Western add any savings from changes in Western's purchase power
contracts. Western is planning a rate adjustment to accommodate any
change in purchase power contracts.
Written comments were received from the following sources:
Bay Area Rapid Transit (California)
Northern California Power Agency (California)
Sacramento Municipal Utility District (California)
[[Page 42562]]
Environmental Evaluation
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 through 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 an
environmental impact statement.
Executive Order 12866
DOE has determined that this is not a significant regulatory action
because it does not meet the criteria of Executive Order 12866, 58 FR
51735. Western has an exemption from centralized regulatory review
under Executive Order 12866; accordingly, no clearance of this notice
by the Office of Management and Budget is required.
Availability of Information
All studies, comments, letters, memoranda, or other documents made
or kept by Western for the purpose of developing Amended Rate Schedule
CV-F7, are and will be made available for inspection and copying at the
Sacramento Area Office, located at 1825 Bell Street, Suite 105,
Sacramento, California 95825; Western Area Power Administration,
Division of Power Marketing, PO Box 3402, Golden, Colorado 80401; and
Power Marketing Liaison Office, Office of the Assistant Administrator
for Washington Liaison, Room 8G-061, Forrestal Building, 1000
Independence Avenue SW., Washington, DC 20585.
Submission to Federal Energy Regulatory Commission
Amended Rate Schedule CV-F7 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 delegated to
me by the Secretary of Energy, I confirm and approve on an interim
basis, effective prior to October 1, 1995, Amended Rate Schedule CV-F7
for the Central Valley Project. The amended rate schedule shall remain
in effect on an interim basis, pending the Federal Energy Regulatory
Commission confirmation and approval on a final basis, through April
30, 1998, or until the rate schedule is superseded.
Issued in Washington, DC, August 8, 1995.
Bill White,
Deputy Secretary.
Amended Rate Schedule CV-F7
(Supersedes Schedule CV-F7)
Central Valley Project; Schedule of Rates for Commercial Firm-power
Service
Effective
October 1, 1995.
Available
Within the marketing area served by the Sacramento Area Office.
Applicable
To the commercial firm-power customers for general power service
supplied through one meter, at one point of delivery, unless otherwise
provided by contract.
Character
Alternating current, 60 hertz, three-phase, delivered and metered
at the voltages and points established by contract.
Monthly Rates
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Period Capacity Energy
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10/01/95-09/30/97................................ $6.57/kW/month............ Base: 17.73 mills/kWh.
Tier: 34.70 mills/kWh.
10/01/97-04/30/98................................ $7.16/kW/month............ Base: 19.33 mills/kWh.
Tier: 37.46 mills/kWh.
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Billing
Demand: The rates listed above for capacity shall be the charge per
kilowatt (kW) of billing demand. The billing demand is the highest 30-
minute integrated demand measured or scheduled during the month up to,
but not in excess of, the delivery obligation under the power sales
contract.
Energy: The rates listed above for energy shall be a charge per
kilowatthour (kWh) for all energy use up to, but not in excess of, the
maximum kWh obligation of the United States during the month as
established under the power sales contract.
The energy base rate shall be applied to all energy sales below a
70-percent monthly load factor. The energy tier rate shall be applied
to all energy sales at a 70-percent and higher monthly load factor. The
monthly load factor shall be calculated based on the lesser of the
customer's (1) maximum demand for the month or, if a scheduled
customer, the maximum scheduled demand for the month; or (2) the
contract rate of delivery. Only power offered under this Amended Rate
Schedule CV-F7 will be used in the calculation of the load factor.
Adjustments
Billing for Unauthorized Overruns
For each billing period in which there is a contract violation
involving an unauthorized overrun of the contractual obligation for
capacity and/or energy, such overrun shall be billed at 10 times the
applicable rates above. The energy base rate will be used as the
overrun rate for energy.
For Revenue Adjustment
The following methodology shall be used for the revenue adjustment
clause (RAC) calculation:
1. If the actual net revenue is greater than the projected net
revenue for the RAC calculation period, a revenue credit will be
allocated during the RAC adjustment period. The credit will equal the
difference between the actual net revenue and projected net revenue,
represented by the following formula:
ANR > PNR; C = ANR -PNR
Where:
ANR = Actual Net Revenue
PNR = Projected Net Revenue
C = Credit
2. If actual net revenue is less than the projected net revenue for
the RAC calculation period, a revenue surcharge will be allocated
during the RAC adjustment period.
2.1 If the actual net revenue is negative, the surcharge will be
equal to the minimum investment payment plus the annual deficit,
represented by the following formula:
ANR < pnr="" and="">< o;="" s="MIP" +="" ad="" where:="" anr="Actual" net="" revenue="" pnr="Projected" net="" revenue="" mip="Minimum" investment="" payment="" ad="Annual" deficit="" s="Surcharge" 2.2="" if="" the="" actual="" net="" revenue="" is="" positive,="" the="" surcharge="" will="" equal="" the="" [[page="" 42563]]="" minimum="" investment="" payment="" less="" the="" actual="" net="" revenue,="" represented="" by="" the="" following="" formula:="" anr="">< pnr="" and=""> 0; S = MIP - ANR (if ANR > MIP, S = 0)
Where:
ANR = Actual Net Revenue
PNR = Projected Net Revenue
MIP = Minimum Investment Payment
S = Surcharge
Provided, that if the actual net revenue is greater than the
minimum investment payment, the surcharge will be equal to zero.
3. The maximum RAC credit allocation will equal $20 million plus
the amount of the Pacific Gas and Electric Company refund credit
applied to Western power bills for the fiscal year. The maximum
allocation for a RAC surcharge shall not exceed $20 million.
4. The RAC credit or surcharge shall be allocated to each Central
Valley Project (CVP) commercial firm-power customer based on the
proportion of the customer's billed obligation to Western for CVP
commercial firm capacity and energy to the total billed obligation for
all CVP commercial firm-power customers for CVP commercial firm
capacity and energy for the RAC calculation period.
5. For purposes of the RAC calculation, the following terms are
defined:
5.1 Actual Net Revenue--The Recorded Net Revenue.
5.2 Annual Deficit--The amount the recorded annual expenses,
including interest, exceed recorded annual revenues.
5.3 Minimum Investment Payment--The lesser of 1 percent of the
recorded unpaid investment balance at the end of the prior FY that the
RAC is being calculated, or the projected net revenue.
5.4 Projected Net Revenue--The annual net revenue available for
investment repayment projected in the PRS for the rate case during the
FY that the RAC is being calculated (see Table 1).
5.5 RAC Adjustment Period--The period January 1 through September
30, following the RAC calculation period when credits or surcharges
will be applied to the power bills.
5.6 RAC Calculation Period--The last recorded FY (October 1
through September 30).
5.7 Recorded Net Revenue--The annual net revenue available for
repayment recorded in the PRS for the FY that the RAC is being
calculated.
6. Subject to modification by a superseding rate schedule, the
final RAC will be allocated to the customers during the period January
1, 1999, to September 30, 1999.
Table 1.-- Projected Net Revenue Available for Investment Repayment for
Revenue Adjustment Clause
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Projected net
Period revenue
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October 1, 1995-September 30, 1996...................... $14,430,107
October 1, 1996-September 30, 1997...................... 1,051,664
October 1, 1997-September 30, 1998...................... 9,595,452
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For Transformer Losses
If delivery is made at transmission voltage but metered on the low-
voltage side of the substation, the meter readings will be increased to
compensate for transformer losses as provided for in the contract.
For Power Factor
The customer will be required to maintain a power factor at all
points of measurement between 95-percent lagging and 95-percent
leading. The low power factor charge (LPFC) will be calculated by
multiplying the customer's maximum monthly demand by the kilovar
(kVar)/kW rate for the customer's mean power factor as provided in the
following Table 2:
Table 2.--kVar/kW Rate Table
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Power factor Rate
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0.94........................................................... 0.09
0.93........................................................... 0.17
0.92........................................................... 0.24
0.91........................................................... 0.32
0.90........................................................... 0.39
0.89........................................................... 0.46
0.88........................................................... 0.53
0.87........................................................... 0.60
0.86........................................................... 0.66
0.85........................................................... 0.73
0.84........................................................... 0.79
0.83........................................................... 0.86
0.82........................................................... 0.92
0.81........................................................... 0.99
0.80........................................................... 1.05
0.79........................................................... 1.12
0.78........................................................... 1.18
0.77........................................................... 1.25
0.76........................................................... 1.32
0.75 and below................................................. 1.38
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A LPFC will be assessed when a customer's power factor is less than
95 percent.
(a) A charge of $2.50 per kVar will be assessed for every kVar
required to raise a customer's power factor to 95 percent. The
calculated power factor used to determine if a charge will be assessed
is the arithmetic mean of a customer's measured monthly average power
factor and their measured onpeak power factor, rounded to the nearest
whole percent with 0.5 percent or greater rounded to the next higher
percent.
(b) The mean power factor will be calculated at each customer's
point of delivery. If a customer has multiple points of delivery, the
power factor will be determined from totalized information from the
points of delivery.
(c) No credit will be given for customers operating between 95
percent and 100 percent.
(d) Customers that have a monthly peak demand less than or equal to
50 kW will not be subject to the LPFC.
(e) The Contracting Officer may waive the LPFC for good cause in
whole or in part.
[FR Doc. 95-20284 Filed 8-15-95; 8:45 am]
BILLING CODE 6450-01-P
