Federal Register: NOTICES Power rates:: Pacific Northwest-Pacific Southwest Intertie Project--Rate Order No. WAPA-130

DEPARTMENT OF ENERGY

Western Area Power Administration

NOTICE: NOTICES

ACTION: Power rates:

DOCUMENT ACTION: Notice of Order Concerning Transmission Service Rates.

SUBJECT CATEGORY: Pacific Northwest-Pacific Southwest Intertie Project--Rate Order No. WAPA-130

DATES: Rate Schedules INT-FT4 and INT-NFT3 will be placed into effect on an interim basis on the first day of the first full billing period beginning on or after October 1, 2007, and will be in effect until FERC confirms, approves, and places the rate schedules in effect on a final basis ending September 30, 2012, or until the rate schedules are superseded.

DOCUMENT SUMMARY: The Deputy Secretary of Energy confirmed and approved Rate Order No. WAPA130 and Rate Schedules INTFT4 and INTNFT3, placing firm and nonfirm transmission service rates for the Pacific Northwest Pacific Southwest Intertie Project (Intertie) of the Western Area Power Administration (Western) into effect on an interim basis. The provisional rates will be in effect until the Federal Energy Regulatory Commission (FERC) confirms, approves, and places them into effect on a final basis, or until they are replaced by other rates. The provisional rates will provide sufficient revenue to pay all annual costs, including interest expense, and repay required investment within the allowable periods.

SUMMARY: Pacific Northwest-Pacific Southwest Intertie Project,

SUPPLEMENTAL INFORMATION

The existing Rate Schedules consist of separate firm transmission service rates for the 230/345kilovolt (kV) and 500kV transmission systems, and a nonfirm transmission service rate for the 230/345/500kV transmission system. Rate Schedules INTFT2 and INTNFT2, Rate Order No. WAPA71, were approved for a 56month period beginning February 1, 1996, and ending September 30, 2000.\1\ Rate Schedule INTFT3, Rate Order No. WAPA76, superseded Rate Schedule INTFT2 as it related to firm transmission service on the 230/345kV transmission system and was approved for a 5year period beginning January 1, 1999, and ending December 31, 2003.\2\ Rate Order No. WAPA 91 extended Rate Schedules INTFT2 and INTNFT2 beginning October 1, 2000, through December 31, 2003,\3\ as they related to firm transmission service on the 500kV transmission system and nonfirm transmission service on the 230/345/500kV transmission system. Rate Order No. WAPA108 extended Rate Schedules INTFT2, INTFT3, and INT NFT2 beginning January 1, 2004, through December 31, 2006.\4\ Western initiated a public process to adjust all three transmission service rates via a notice published in the Federal Register on July 12, 2006, (71 FR 39310). Rate Order No. WAPA133 extended the public process for the rate adjustment that was initiated on July 12, 2006, and extended the existing rate schedules again beginning January 1, 2007, through December 31, 2007.\5\
\1\ WAPA71 was approved by the Deputy Secretary of Energy on January 31, 1996 (61 FR 4650), and confirmed and approved by FERC on a final basis on July 24, 1996, in Docket No. EF965191000 (76 FERC ] 62061).
\2 \ WAPA76 was approved by the Deputy Secretary of Energy on January 28, 1999 (64 FR 6344), and confirmed and approved by FERC on a final basis on June 22, 1999, in Docket No. EF995191000 (87 FERC ] 61346).
\3\ WAPA91 was approved by the Deputy Secretary of Energy on August 15, 2000 (65 FR 52423). FERC accepted this extension pursuant to a letter order from Michael A. Coleman, Director, Division of Tariffs and RatesWest dated October 19, 2000, in Docket No. EF00 5191000.
\4\ WAPA108 was approved by the Deputy Secretary of Energy on October 27, 2003 (68 FR 63083), and approved by FERC on a final basis on March 25, 2004, in Docket No. EF045191000 (106 FERC ] 62227).
\5\ WAPA133 was approved by the Deputy Secretary of Energy on December 21, 2006 (71 FR 78189) and filed with FERC for
informational purposes only, and docketed by FERC in Docket No. EF075191000 on December 21, 2006.

The existing firm transmission service Rate Schedules are being superseded by Rate Schedule INTFT4. Under Rate Schedule INTFT2, the rate for firm pointtopoint 500kV transmission service is $17.23 per kilowattyear (kWyear). Under Rate Schedule INTFT3, the rate for firm pointtopoint 230/345kV transmission service is $12 per kWyear. The provisional rate for firm pointtopoint 230/345/500kV transmission service under Rate Schedule INTFT4 is $15.24 per kWyear. The provisional rate for firm transmission service in Rate Schedule INTFT4 results in a decrease of about 11.5 percent when compared with the existing rate under Rate Schedule INTFT2, and an increase of 27 percent when compared with the existing rate under Rate Schedule INT FT3. The existing nonfirm transmission service Rate Schedule is being superseded by Rate Schedule INTNFT3. Under Rate Schedule INTNFT2, the rate for nonfirm pointtopoint 230/345/500kV transmission service is 2.00 mills per kilowatthour (kWh). The provisional rate for nonfirm pointtopoint 230/345/500kV transmission service under Rate Schedule INTNFT3 is 1.74 mills per kWh. The provisional rate for nonfirm transmission service in Rate Schedule INTNFT3 results in a decrease of 13 percent when compared with the existing rate under Rate Schedule INTNFT2.

By Delegation Order No. 00037.00, effective December 6, 2001, the Secretary of Energy delegated: (1) The authority to develop power and transmission rates to Western's Administrator, (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. Existing DOE procedures for public participation in power rate adjustments (10 CFR part 903) were published on September 18, 1985.

Under Delegation Order Nos. 00037.00 and 00001.00C, and in compliance with 10 CFR part 903, and 18 CFR part 300, I hereby confirm, approve, and place Rate Order No. WAPA130 and the proposed rates for Intertie transmission service into effect on an interim basis. The new Rate Schedules INTFT4 and INTNFT3 will be submitted promptly to FERC for confirmation and approval on a final basis.

Dated: September 28, 2007.
Clay Sell,
Deputy Secretary of Energy.
Department of Energy, Deputy Secretary
[Rate Order No. WAPA130]
In the Matter of: Western Area Power Administration Rate Adjustment for the Pacific NorthwestPacific Southwest Intertie Project; Order Confirming, Approving, and Placing the Pacific NorthwestPacific Southwest Intertie Project Transmission Service Rates Into Effect on an Interim Basis

These rates were established in accordance with section 302 of the Department of Energy (DOE)
[[Page 57564]]
Organization Act (42 U.S.C. 7152). This Act transferred to and vested in the Secretary of Energy, the power marketing functions of the Secretary of the Department of the Interior and the Bureau of Reclamation under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and other Acts that specifically apply to the project involved.

Acronyms and Definitions

As used in this Rate Order, the following acronyms and definitions apply:
Administrator: The Administrator of the Western Area Power Administration.
Capacity: The electric capability of a generator, transformer, transmission circuit, or other equipment. It is expressed in kilowatts.

FOR FURTHER INFORMATION CONTACT Mr. J. Tyler Carlson, Regional Manager, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 850056457, (602) 6052453, email carlson@wapa.gov or Mr. Jack Murray, Rates Team Lead, Desert Southwest Customer Service Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 850056457, (602) 6052442, email
jmurray@wapa.gov.