[Federal Register Volume 64, Number 176 (Monday, September 13, 1999)]
[Notices]
[Pages 49483-49484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23660]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Proposed Rate Schedule Changes
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of Opportunity for Public Review and Comment.
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SUMMARY: The Administrator, Southwestern Power Administration
(Southwestern), has determined that revisions to the terms and
conditions related to real power losses and both operating reserves
ancillary services within existing rate schedules NFTS-98B and P-98B
are required. Since the proposed changes to the rate schedules are
associated with the terms and conditions of service and revised billing
units for the ancillary services and do not impact the revenue
requirements for the Integrated System, the net results of the 1997
Integrated System Power Repayment Studies, which was the basis for the
existing rate schedules, will not be altered. Southwestern held
informal meetings with customers to discuss proposed changes and to
provide opportunity for input in the development of these changes.
DATES: Written comments on the proposed rate schedule changes are due
on or before October 13, 1999.
ADDRESSES: Five copies of written comments should be submitted to:
Michael A. Deihl, Administrator, Southwestern Power Administration, One
West Third Street, Suite 1400, Tulsa, OK 71103.
FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant
Administrator, Office of Corporate Operations, (918) 595-6696,
reeves@swpa.gov.
SUPPLEMENTARY INFORMATION: The names of the rate schedules will be
changed to NFTS-98C and P-98C in order to reflect the fact that
revisions have been made. Two areas of the rate schedules are being
revised to reflect changes to the terms and conditions of both (1) Real
Power Losses to allow for self-provision, and (2) the Spinning and
Supplemental Operating Reserve Ancillary Services to be consistent with
the application of Southwestern's provision for such services which
will result in a change in rates for these services. These changes are
addressed in detail below.
Real Power Losses
The basis for determining the rate to charge for Real Power Losses
(Losses) in the current rate schedules (P-98B and NFTS-98B) for
transmission service is the average actual costs incurred by
Southwestern for the purchase of energy to replace Losses during the
most recent twelve-month period. Additionally, the current rate
schedules require customers to purchase Losses from Southwestern to
meet their obligation to replace loss energy. In the proposed rate
schedules, the basis for determining the loss rate will remain the
same; however, the period will be based on the previous fiscal year
(October through September) rather than the most recent twelve-month
period. The rate for Losses, to be effective the next calendar year,
will be posted on Southwestern's Open Access Same-Time Information
System by November 1 of each year. Southwestern also proposes, in
addition to the existing rate schedule provision in which the customer
purchases Losses, to allow the customer to annually elect to self-
provide all loss energy for which it is responsible. Such election for
the self-provision of Losses shall be for a full calendar year and
shall be exercised by the execution of a Service Agreement, or
equivalent, on or before November 30th of the prior calendar year.
Southwestern proposes to initially implement this new procedure
effective January 1, 2000. Thereafter, the rate for losses will be
reviewed and adjusted as needed to become effective at the beginning of
each subsequent calendar year.
Spinning and Supplemental Reserve Ancillary Services
The Federal Energy Regulatory Commission's Order No. 888 states
that the transmission provider is required ``to offer to provide the
ancillary services'' for Spinning Operating Reserves and Supplemental
Operating Reserves ``to transmission customers serving load in the
transmission provider's control area.'' The transmission customer may
make alternative arrangements to acquire these services if the
transmission customer demonstrates to the transmission provider that it
has adequately done so. Consequently,
[[Page 49484]]
Southwestern designed its rates for these services on that basis and
provided (in Rate Schedules P-98B and NFTS-98B) that the rates for
these services were only to be applied to the transmission transactions
that served load within Southwestern's control area.
For reliability purposes, Southwestern operates its control area in
accordance with the operating criteria of the Southwest Power Pool
(SPP). The SPP criteria related to operating reserves require that each
control area maintain an amount of operating reserves based on its net
load responsibility. The effect of this is that Southwestern provides
operating reserves on all generation in its control area for both
internal and external delivery.
After reviewing the existing operating conditions, Southwestern has
determined that rate schedules P-98B and NFTS-98B need to be revised to
reflect the criteria under which Southwestern operates its transmission
system and provides the Operating Reserve Services. Southwestern
proposes to revise the terms and conditions relating to the two
Operating Reserve ancillary services to charge for these services for
all transmission transactions utilizing generation sources located
within Southwestern's control area because Southwestern is actually
providing the Operating Reserve services for those transactions. In
addition to these changes, the billing units for these services will be
revised to reflect the additional users of these services, resulting in
a decrease in the unit rate for these services from $0.03 per kW/month
for Spinning Operating Reserve Services and $0.03 per kW/month for
Supplemental Operating Reserve Services to approximately $0.0073 per
kW/month for each of these two ancillary services. This will not change
Southwestern's revenue requirements to recover the cost of providing
these services.
Redlined versions of the revised rate schedules NFTS-98C and P-98C
will be made available upon request. To request a copy, please contact
Barbara Otte at 918-595-6674 or at otte@swpa.gov or Tracey Hannon at
918-595-6677 or at hannon@swpa.gov.
The Administrator has determined that written comments will provide
adequate opportunity for public participation in the rate schedule
revision process. Therefore, an opportunity is presented for interested
parties to submit written comments on the proposed rate schedule
changes. Written comments are due no later than thirty (30) days
following publication of this notice in the Federal Register. Five
copies of written comments should be submitted to: Michael A. Deihl,
Administrator, Southwestern Power Administration, One West Third
Street, Suite 1400, Tulsa, OK 74103.
Following review and consideration of written comments, the
Administrator will finalize and submit the proposed rate schedules to
the Secretary of Energy for approval on an interim basis. The Secretary
will then forward the proposed rate schedules to the Federal Energy
Regulatory Commission for confirmation and approval on a final basis.
Issued at Tulsa, OK this 25th day of August 1999.
Michael A. Deihl,
Administrator.
[FR Doc. 99-23660 Filed 9-10-99; 8:45 am]
BILLING CODE 6450-01-P
