Integrated System power rates and opportunities: Rate schedule changes; comment request,

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Federal Register: September 13, 1999 (Volume 64, Number 176)NoticesPage 49483-49484From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr13se99-78

DEPARTMENT OF ENERGY

Southwestern Power Administration

Proposed Rate Schedule Changes

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Opportunity for Public Review and Comment.

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. 99-23660Filed9-10-99; 8:45 amBILLING CODE 6450-01-P

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