Suspension of the Financial Reserves Policy Surcharge for the Remainder of the BP-20 Rate Period; Public Hearing and Opportunities for Public Review and Comment
| Citation | 85 FR 37444 |
| Record Number | 2020-13248 |
| Published date | 22 June 2020 |
| Section | Notices |
| Court | Bonneville Power Administration |
Federal Register, Volume 85 Issue 120 (Monday, June 22, 2020)
[Federal Register Volume 85, Number 120 (Monday, June 22, 2020)]
[Notices]
[Pages 37444-37447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13248]
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DEPARTMENT OF ENERGY
Bonneville Power Administration
[BPA File No.: BP-20E]
Suspension of the Financial Reserves Policy Surcharge for the
Remainder of the BP-20 Rate Period; Public Hearing and Opportunities
for Public Review and Comment
AGENCY: Bonneville Power Administration (Bonneville), Department of
Energy (DOE).
ACTION: Suspension of the Financial Reserves Policy Surcharge for the
remainder of the BP-20 rate period.
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SUMMARY: Bonneville is holding an expedited rate proceeding pursuant to
Section 7(i) of the Pacific Northwest Electric Power Planning and
Conservation Act (Northwest Power Act) to suspend the application of
the Financial Reserves Policy Surcharge (FRP Surcharge) for the
remainder of the BP-20 rate period. The Northwest Power Act requires
that Bonneville's rates be established based on the record of a formal
hearing. By this notice, Bonneville announces the commencement of an
expedited rate proceeding, designated as the ``BP-20E'' proceeding, for
the limited purpose of suspending the FRP Surcharge for the remainder
of the BP-20 rate period. As explained in Part IV.C, the effective date
would depend on the timing of approval by the Federal Energy Regulatory
Commission.
DATES: Prehearing Conference: The BP-20E proceeding begins with a
prehearing conference at 1:00 p.m. on Thursday, June 25, 2020, which
will be held telephonically. Interested parties may obtain the call-in
information by accessing Bonneville's BP-20E rate case web page at
https://www.bpa.gov/goto/BP20E or by contacting the Hearing Clerk at
[email protected].
Intervention and Notice of Objection: Anyone intending to become a
party to the BP-20E expedited proceeding must file a petition to
intervene on Bonneville's secure website no later than 4:30 p.m. on
June 24, 2020. In addition, any person or entity that intends to object
to Bonneville's proposal must include a notice of objection in its
petition to intervene. See Part III in SUPPLEMENTARY INFORMATION for
details on requesting access to the secure website and filing a
petition to intervene.
Participant Comments: Written comments by non-party participants
must be received by June 26, 2020, to be considered in the
Administrator's
[[Page 37445]]
Record of Decision (ROD). See Part III in SUPPLEMENTARY INFORMATION for
details on submitting participant comments.
FOR FURTHER INFORMATION CONTACT: Ms. Heidi Helwig, Bonneville
Communications, by phone at (503) 230-3458, or by email at
[email protected].
The Hearing Clerk for this proceeding can be reached via email at
[email protected].
Please direct questions regarding Bonneville's secure website to
the BP-20E Rate Hearing Coordinator via email at [email protected] or,
if the question is time-sensitive, via telephone at (503) 230-5107.
Responsible Officials: Mr. Daniel H. Fisher, Power Rates Manager,
is the official responsible for the development of Bonneville's power
rates, and Ms. Rebecca E. Fredrickson, Deputy Vice President of
Transmission Marketing and Sales, is the official responsible for the
development of Bonneville's transmission rates.
SUPPLEMENTARY INFORMATION:
Table of Contents
Part I. Introduction and Procedural Matters
Part II. Scope of BP-20E Rate Proceeding
Part III. Public Participation in BP-20E
Part IV. Rate Proposal
Part V. Proposed Rate Schedules
Part I--Introduction and Procedural Matters
A. Introduction and Expedited Process
Bonneville's proposal to suspend the Power and Transmission FRP
Surcharge for the remainder of the BP-20 rate period is expected to
result in a reduction of Bonneville's current power rates, providing
rate relief to millions of Pacific Northwest ratepayers during the
COVID-19 pandemic. In FY 2021, this proposal would reduce power rates,
as the FRP Surcharge triggered in FY 2020 and is expected to again
trigger in FY 2021. The proposal should not impact transmission rates
as the FRP Surcharge did not trigger in FY 2020 and is not expected to
trigger in FY 2021. In compliance with the procedures for the
establishment of Bonneville rates set forth in Section 7(i) of the
Northwest Power Act, Bonneville is conducting the hearing process for
the review of this proposal on an expedited basis in an effort to
provide the opportunity for timely rate relief.
The Rules of Procedure that govern Bonneville's rate proceedings
were published in the Federal Register, 83 FR 39993 (Aug. 13, 2018),
and posted on Bonneville's website at https://www.bpa.gov/Finance/RateCases/RulesProcedure/Pages/default.aspx. Sections 1010.4(b)(4) and
1010.22 of the Rules of Procedure provide for expedited rate processes
such as the BP-20E proceeding. An expedited proceeding is necessary in
this case in order to enable prompt implementation of the proposal,
which would result in a reduction to power rates and assurance
transmission rates would not go up. In order to facilitate the
expedited process, pursuant to Section 1010.1(e) of the Rules of
Procedure, the Administrator authorizes the Hearing Officer to waive
any procedural requirements of the rules for the purpose of developing
the record and completing the proceeding on an expedited basis.
B. Proposed Expedited Procedural Schedule
The purpose of this proceeding is narrow, with the suspension of
the FRP Surcharge the only issue within its scope. Bonneville publicly
announced its proposal to suspend the FRP Surcharge on May 29, 2020,
and held a public meeting on June 5, 2020, to discuss its proposal and
the use of an expedited process and schedule. The Hearing Officer is
directed to use this schedule if no objections to the proposal are
submitted with any of the petitions to intervene, as required by Part
III.B of this notice.
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Initial proposal released Federal Register notice publication date
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Deadline for Petitions to Intervene and Notices of June 24, 2020.
Objection.
Prehearing Conference.................................. June 25, 2020.
Close of Participant Comments.......................... June 26, 2020.
Final Record of Decision............................... June 29, 2020.
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If an objection is raised in a petition to intervene, the Hearing
Officer is directed to adopt an alternative procedural schedule at the
Prehearing Conference to establish an expedited process for the rest of
the proceeding. If an objection is raised, Bonneville will hold a
telephonic Scheduling Conference with prospective parties on June 25,
2020, at 9:00 a.m. to attempt to develop an alternative procedural
schedule to propose to the Hearing Officer at the Prehearing
Conference. Any procedural schedule adopted by the Hearing Officer must
provide for issuance of the Administrator's Record of Decision no later
than 90 days after publication of this Federal Register Notice. The
Hearing Officer is strongly encouraged to conclude the proceeding in
less than 90 days and may circumscribe or reduce the timing or
availability of any procedural activities in the case as he or she
determines are unnecessary or overly burdensome in consideration of the
limited scope and purpose of this case. The Administrator does not
intend to hold oral argument or issue a draft Record of Decision in
this proceeding, so the Hearing Officer is directed to exclude those
steps and any briefs on exception from the procedural schedule.
C. Ex Parte Communications
Section 1010.5 of the Rules of Procedure prohibits ex parte
communications. Ex parte communications include any oral or written
communication (1) relevant to the merits of any issue in the
proceeding; (2) that is not on the record; and (3) with respect to
which reasonable prior notice has not been given. The ex parte rule
applies to communications with all Bonneville and DOE employees and
contractors, the Hearing Officer, and the Hearing Clerk during the
proceeding. Except as provided, any communications with persons covered
by the rule regarding the merits of any issue in the proceeding by
other executive branch agencies, Congress, existing or potential
Bonneville customers, nonprofit or public interest groups, or any other
non-DOE parties are prohibited. The rule explicitly excludes and does
not prohibit communications (1) relating to matters of procedure; (2)
otherwise authorized by law or the Rules of Procedure; (3) from or to
the Federal Energy Regulatory Commission (Commission); (4) that all
litigants agree may be made on an ex parte basis; (5) in the ordinary
course of business, about information required to be exchanged under
contracts, or in information responding to a Freedom of Information Act
request; (6) between the Hearing Officer and Hearing Clerk; (7) in
meetings for which prior notice has been given; or (8) as otherwise
specified
[[Page 37446]]
in Section 1010.5(b) of the Rules of Procedure. The prohibition on ex
parte communications applies from the date of publication of this
notice and remains in effect until the Administrator's Record of
Decision is issued.
Part II--Scope of BP-20E Rate Proceeding
The scope of the BP-20E rate proceeding is limited to consideration
of the proposal to suspend the FRP Surcharge for the remainder of the
BP-20 rate period. Bonneville may revise the scope of the proceeding to
include new issues that arise as a result of circumstances or events
occurring outside the proceeding that are substantially related to the
rates under consideration in the proceeding. See Rules of Procedure,
Section 1010.4(b)(8)(iii), (iv). If Bonneville revises the scope of the
proceeding to include new issues, Bonneville will provide public notice
on its website, present testimony or other information regarding such
issues, and provide a reasonable opportunity to intervene and respond
to Bonneville's testimony or other information. Id.
Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the
Administrator directs the Hearing Officer to exclude from the record
all argument, testimony, or other evidence that challenges the
appropriateness or reasonableness of any other matter, issue, topic, or
policy that is not directly related to suspension of the FRP Surcharge
for the remainder of the BP-20 rate period.
Part III--Public Participation in BP-20E
A. Distinguishing Between ``Participants'' and ``Parties''
Bonneville distinguishes between ``participants in'' and ``parties
to'' the hearings. Separate from the formal hearing process, Bonneville
will receive written comments, views, opinions, and information from
participants who may submit comments without being subject to the
duties of, or having the privileges of, parties. Participants do not
have the same procedural rights and are not subject to the same
procedural requirements as parties. Bonneville customers whose rates
are subject to this proceeding, or their affiliated customer groups,
may not submit participant comments. Members or employees of
organizations that have intervened in the proceeding may submit
participant comments as private individuals (that is, not speaking for
their organizations) but may not use the comment procedures to address
specific issues raised by their intervenor organizations.
Written comments by participants will be included in the record and
considered by the Administrator if they are received by June 26, 2020.
Participants should submit comments through Bonneville's website at
https://www.bpa.gov/comment. All comments should contain the
designation ``BP-20E'' in the subject line.
B. Interventions and Notices of Objections
1. Intervention
Any entity or person intending to become a party to in the BP-20E
rate proceeding must file a petition to intervene through Bonneville's
secure website (https://www.bpa.gov/secure/Ratecase/). A first-time
user of Bonneville's secure website must create a user account to
submit an intervention. Returning users may request access to the BP-
20E rate proceeding through their existing accounts, and may submit
interventions once their permissions have been updated. The secure
website contains a link to the user guide, which provides step-by-step
instructions for creating user accounts, generating filing numbers,
submitting filings, and uploading interventions. Please contact the
Rate Hearing Coordinator via email at [email protected] or, if the
question is time-sensitive, via telephone at (503) 230-5107 with any
questions regarding the submission process. A petition to intervene
must conform to the format and content requirements set forth in
Sections 1010.6 and 1010.11 of the Rules of Procedure and must be
uploaded to the BP-20E rate proceeding secure website by June 24, 2020.
Pursuant to Section 1010.1(e) of the Rules of Procedure, the
Administrator is modifying the procedures for objections to petitions
to intervene provided under Section 1010.6(d). For the BP-20E
proceeding, objections to a petition to intervene must be raised at the
Prehearing Conference. All petitions and any objections will be ruled
on by the Hearing Officer at the Prehearing Conference. Late
interventions are strongly disfavored. Opposition to an untimely
petition to intervene must be filed within two business days after
service of the petition.
2. Notice of Objections to BP-20E Proposal
A petition to intervene must also affirmatively state whether the
entity intends to object to the proposal in this Federal Register
Notice or the expedited process and schedule. A petition to intervene
that does not state a position will be deemed to have made no
objection.
C. Developing the Record
The hearing record will include, among other things, the
transcripts of the hearing, written evidence and argument entered into
the record by Bonneville and the parties, written comments from
participants, and other material accepted into the record by the
Hearing Officer. The Hearing Officer will review the record and certify
the record to the Administrator.
The Administrator will make a final determination on the issue in
this proceeding based on the record and such other materials and
information as may have been submitted to or developed by the
Administrator. The Final ROD will be made available to all parties.
Bonneville will submit the Final ROD and the hearing record to the
Commission for confirmation and approval after issuance of the Final
ROD (see Part IV.C of this notice).
Part IV--Rate Proposal
A. Background on the FRP Surcharge
The FRP Surcharge collects additional revenue through adjustments
to rates when Bonneville's financial reserves (cash and cash
equivalents) fall below certain identified financial thresholds. The
surcharge is a component of the Financial Reserves Policy, which was
developed in the BP-18 rate proceeding. The Financial Reserves Policy
is designed to support the long-term financial health of the agency by
ensuring Bonneville maintains a minimum level of financial reserves for
liquidity and risk mitigation. The Financial Reserves Policy provides
for each of Bonneville's business units (Power and Transmission) to
maintain a minimum balance of financial reserves calculated as the
equivalent to 60 days of operating cash. For Power, 60 days cash is
approximately $300 million; for Transmission, 60 days cash is
approximately $100 million. If a business unit's financial reserves
falls below the identified threshold, the FRP Surcharge triggers,
increasing that business unit's rates up to a specified amount for the
fiscal year. Power and Transmission financial reserves are evaluated
each fiscal year, with the application of the FRP Surcharge (if any)
beginning with the December billing cycle.
The FRP Surcharge for the FY 2020-2021 rate period was established
in the BP-20 rate proceeding. The BP-20 rates received final Commission
approval on April 17, 2020. For FY 2020, the FRP Surcharge for the
Power business unit
[[Page 37447]]
triggered, resulting in a $30 million increase to power rates beginning
in December 2019. Based on current end-of-year projections, the FRP
Surcharge is expected to again trigger for the Power business unit in
FY 2021. The FRP Surcharge for the Transmission business unit did not
trigger in FY 2020 and is not expected to trigger in FY 2021.
B. Background on National Emergency
On March 13, 2020, the President declared the outbreak of COVID-19
in the United States a national emergency. Since then, much of the
United States has been under stay-at-home orders. The impacts of COVID-
19 on the national economy are only beginning to be understood. With
near-record unemployment in many regional communities, Bonneville's
utility customers have had to lay off staff, rely on cash reserves,
and/or use short-term credit to maintain operations. Throughout the
pandemic, Bonneville has cooperatively worked with its customers to
ensure that they are able to continue to provide essential utility
services to regional homes and businesses. As part of these
discussions, customers requested Bonneville to consider offering
immediate rate relief through the suspension of the FRP Surcharge.
C. Rate Proposal: Suspension of the FRP Surcharge
Bonneville proposes to suspend the FRP Surcharge for the remainder
of the BP-20 rate period. Specifically, the General Rate Schedule
Provisions for the Power and Transmission FRP Surcharges currently in
effect would be replaced by the rate schedules identified at https://www.bpa.gov/goto/BP20E.
Bonneville intends to seek Commission approval effective on the
first day of the month following the issuance of the Administrator's
Final ROD. If the BP-20E proceeding follows the procedural schedule
included in Part I.B of this notice, Bonneville would seek Commission
approval effective July 1, 2020. If the Commission were to grant
approval of this proposal effective on any day other than the first day
of the month, then the rate relief would be effective beginning the
first day of the following month.
Suspension of the Power FRP Surcharge would also require small
changes to the Load Shaping Charge True-Up Rate and PF Melded
Equivalent Scalar for Fiscal Year 2020, both of which would be adjusted
depending upon the effective date provided by the Commission.
Part V--Proposed Rate Schedules
Bonneville's proposed General Rate Schedule Provisions for the
Power and Transmission Financial Reserves Policy Surcharges for the
remainder of the BP-20 rate period are a part of this notice and are
available for viewing and downloading on Bonneville's website at
https://www.bpa.gov/goto/BP20E.
Signing Authority
This document of the Department of Energy was signed on June 15,
2020, by Elliot E. Mainzer, Administrator and Chief Executive Officer
of the Bonneville Power Administration, pursuant to delegated authority
from the Secretary of Energy. That document with the original signature
and date is maintained by DOE. For administrative purposes only, and in
compliance with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on June 16, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2020-13248 Filed 6-19-20; 8:45 am]
BILLING CODE 6450-01-P
