[Federal Register Volume 73, Number 184 (Monday, September 22, 2008)]
[Notices]
[Pages 54573-54584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22097]
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DEPARTMENT OF ENERGY
Notice of Interim Approval
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of Interim Approval for Southeastern Power
Administration Cumberland System.
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SUMMARY: The Deputy Secretary of Energy confirmed and approved, on an
interim basis, Rate Schedules CBR-1-G, CSI-1-G, CEK-1-G, CM-1-G, CC-1-
H, CK-1-G, CTV-1-G, and Replacement-3. The rates were approved on an
interim basis through September 30, 2013. The new rates take effect on
October 1, 2008, and are subject to confirmation and approval on a
final basis by the Federal Energy Regulatory Commission (``FERC'').
DATES: Approval of the rate schedules on an interim basis is effective
October 1, 2008, through September 30, 2013.
FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant
[[Page 54574]]
Administrator, Finance & Marketing, Southeastern Power Administration,
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635-
6711, (706) 213-3800.
SUPPLEMENTARY INFORMATION: On August 19, 2008, FERC confirmed and
approved Interim Wholesale Power Rate Schedules CBR-1-F, CSI-1-F, CEK-
1-F, CM-1-F, CC-1-G, CK-1-F, and CTV-1-F for the period from February
25, 2008 to September 30, 2008.
Dated: September 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
DEPARTMENT OF ENERGY DEPUTY SECRETARY
In the Matter of: Southeastern Power Administration
Cumberland System Rates
[Rate Order No. SEPA-50]
Order Confirming and Approving Power Rates on an Interim Basis
Pursuant to Sections 302(a) and 301(b) of the Department of Energy
Organization Act, Public Law 95-91, the functions of the Secretary of
the Interior and the Federal Power Commission under Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, relating to the Southeastern
Power Administration (``Southeastern'' or ``SEPA'') were transferred to
and vested in the Secretary of Energy. By Delegation Order No. 00-
037.00, effective December 6, 2001, the Secretary of Energy delegated
to Southeastern's Administrator the authority to develop power and
transmission rates, and delegated to the Deputy Secretary of Energy the
authority to confirm, approve, and place in effect such rates on an
interim basis, and delegated to the Federal Energy Regulatory
Commission (``FERC'') the authority to confirm, approve, and place into
effect on a final basis or to disapprove rates developed by the
Administrator under the delegation. This rate order is issued by the
Deputy Secretary pursuant to said notice.
Background
The FERC issued an order approving Rate Schedules CBR-1-F, CSI-1-F,
CEK-1-F, CM-1-F, CC-1-G, CK-1-F, and CTV-1-F on a final basis for the
sale of power from the Cumberland System August 19, 2008 (124 FERC ]
62,139).
The power marketing policy provides peaking capacity, along with
1500 hours of energy with each kilowatt of capacity, to customers
outside the Tennessee Valley Authority (``TVA'') transmission system.
Due to restrictions on the operations of the Wolf Creek and Center Hill
Projects imposed by the U.S. Army Corps of Engineers (``Corps'') as a
precaution to prevent failure of the dam, Southeastern has not been
able to provide peaking capacity to these customers. An interim
operating plan for the Cumberland System provides these customers with
energy that does not include capacity.
Public Notice and Comment
Notice of a proposed rate adjustment was published in the Federal
Register April 11, 2008 (73 FR 19832). The notice advised interested
parties of a public information and comment forum to be held in
Nashville, Tennessee on May 22, 2008. Written comments were accepted on
or before July 10, 2008. Written comments were received from six
sources pursuant to this notice.
Comment 1: There is concern * * * whether the amounts included for
Corps Operation and Maintenance (``O&M'') expense are appropriate
forecasts in light of potential budget cuts in Corps appropriations in
Fiscal Year 2009.
The Southeastern Federal Power Customers, Inc. (``SeFPC'' or
``Customers'') has frequently questioned whether the amounts for Corps
O&M and at times renewals and replacements, in a proposed rate are
appropriate when Congress appears poised to reduce the funding levels
for these precise activities. In particular, the Customers have not
wanted to pay more in rates than what the Corps will receive from
Congress for O&M and renewals and replacement activity. Therefore, the
Customers encourage SEPA to examine closely the proposed O&M
projections to ensure that they appropriately align with anticipated
appropriations.
Response 1: The Corps provides O&M estimates to Southeastern
annually. The customers have an opportunity to review the Corps'
estimated and actual costs annually through the O&M committee of the
SeFPC. Southeastern believes that the estimates are the best available.
Comment 2: * * * the SeFPC suggests that SEPA develop a
consultation and related true-up process for implementing a rate in the
event that capacity is made available. Under the consultation and true-
up process suggested * * * SEPA would consult with preference customers
regarding available capacity to market to all existing customers of the
Cumberland River Basin projects. The consultation could involve a
meeting or conference call or some other communication depending upon
the immediacy of the available capacity. During this conference with
the customers, SEPA would explain how it intends to market the capacity
and how it would recover the necessary revenues. At or around this
time, the customers could suggest how the marketing of the capacity
could be adjusted, including offering comments as suitable on the
appropriate pricing for capacity and energy. SEPA would consider the
input from the customers and make modifications as deemed appropriate
for the implementation of the interim rate for capacity and energy
sales.
To remain true to the proposed rate, the Customers recommend that
SEPA evaluate the sales of capacity and energy on an ongoing, yet
practical, basis to determine whether the capacity and energy delivered
was consistent with the projections used to develop the rates under
rate Alternative Two. In the event that there is a significant
deviation in the amount of delivered capacity and energy from the
projections used to prepare the rate, SEPA would again consult with the
customers. As appropriate, SEPA would change the interim rate for the
capacity and energy sales to ensure that the delivery of the benefits
of the projects remains consistent with the underlying marketing plan
for the Cumberland System of Projects.
Response 2: Southeastern will consult with Cumberland System
customers on any marketing arrangements and rate design matters
involved in the rates under Alternative Two. The consultation could
include meetings, conference calls, or some other communications
depending on the immediacy of the available capacity. Southeastern will
consider the input from the customers and make modifications
Southeastern deems appropriate for the implementation of the interim
rate for capacity and energy sales.
Southeastern does not believe a true-up mechanism is appropriate or
necessary for the rates that may be established under Alternative Two.
Southeastern evaluates and monitors all sales of capacity and energy on
an ongoing, continuous basis and makes changes when Southeastern
determines they are appropriate.
Comment 3: South Mississippi Electric Power Association (``SMEPA'')
encourages SEPA to examine closely the proposed rate increase and keep
it to the absolute minimum required to satisfy SEPA revenue
requirements.
Response 3: Under the Flood Control Act of 1944 (``Act''),
Southeastern is required to market power at the lowest possible rates
consistent with sound business principles. The Administrator
[[Page 54575]]
has certified that the proposed rates satisfy this requirement of the
Act.
Comment 4: East Kentucky Power Cooperative (``EKPC'') submits that
SEPA is not purchasing firm transmission service for the 70 MW at the
Laurel Dam facility; therefore, EKPC should not have to pay a firm TVA
transmission service charge for that capacity.
Response 4: By contract, under normal operating conditions, EKPC
will receive 170 MW from the Cumberland projects. Delivery of EKPC's
allocation is not limited to the operations of any Cumberland project.
The output of the Laurel Project, which is in EKPC's control area, is
supplemented by energy and capacity from the Cumberland Projects in
TVA's control area. Southeastern believes it is appropriate to continue
to recover the TVA transmission charge from EKPC's full allocation.
Comment 5: It is TVA's understanding that there were certain errors
in the financial information set forth in Exhibit 5 of SEPA's rate
change support materials. Those errors in turn resulted in errors in
the calculation of the published proposed rate changes for TVA and for
SEPA's other Cumberland System customers. It is TVA's understanding
that SEPA is aware of those errors and intends to correct them.
Accordingly, TVA's forbearance of raising objections to the
proposed rate changes is based on TVA's expectation that these
corrections will be made such that the new rates to be paid by all
SEPA's Cumberland System customers will be increased by approximately
the same 4.9 per centum consistent with SEPA's own policies for such
rate changes regarding the Cumberland System of Projects.
Response 5: Southeastern has corrected certain errors in the rate
design of the proposed rates under Alternative Three. After correcting
the errors, the rate adjustment is about five percent (5%) for all
Cumberland customers except those in Carolina Power & Light, Western
Division (``CP&L''). The CP&L area customers' increase is less because
the CP&L transmission rate has not changed.
Comment 6: The purpose for the proposed rate changes cannot be
achieved unless the Corps, SEPA, and the Cumberland System customers
reach agreement upon and implement Memorandums of Agreement (``MOAs'')
sufficient to cover each and all of Fiscal Years 2008 through 2028 and
related Sub-agreements. Accordingly, TVA's forbearance of raising
objections to the proposed rate changes is based on TVA's expectation
that MOAs and related Sub-agreements * * * will be executed and
appropriately implemented.
The Tennessee Valley Public Power Association (``TVPPA'')
respectfully recommends that unless and until the United States Army
Corps of Engineers (``USACE''), the Southeastern Power Administration
(``SEPA'') and the Cumberland System Customers of SEPA have reached an
agreement with a specific understanding as to amount and duration for
rehabilitation and replacement work on the USACE hydroelectric projects
on the Cumberland System, that the rate increase should not be
implemented.
Response 6: Southeastern is required to include estimates of
replacements and additions in the repayment study to support the
proposed rate schedules. Southeastern believes the estimates of
replacements and additions included in this rate adjustment are the
best available. Southeastern believes this rate adjustment would be
necessary independent of the implementation of MOAs and related Sub-
agreements.
Discussion
System Repayment
An examination of Southeastern's revised system power repayment
study, prepared in July 2008, for the Cumberland System, shows that
with the proposed rates, all system power costs are paid within the 50-
year repayment period required by existing law and DOE Order RA 6120.2.
The Administrator of Southeastern has certified that the rates are
consistent with applicable law and that they are the lowest possible
rates to customers consistent with sound business principles.
Environmental Impact
Southeastern has reviewed the possible environmental impacts of the
rate adjustment under consideration and has concluded that, because the
adjusted rates would not significantly affect the quality of the human
environment within the meaning of the National Environmental Policy Act
of 1969, the proposed action is not a major Federal action for which
preparation of an Environmental Impact Statement is required.
Availability of Information
Information regarding these rates, including studies, and other
supporting materials, is available for public review in the offices of
Southeastern Power Administration, 1166 Athens Tech Road, Elberton,
Georgia 30635-6711.
Submission to the Federal Energy Regulatory Commission
The rates hereinafter confirmed and approved on an interim basis,
together with supporting documents, will be submitted promptly to FERC
for confirmation and approval on a final basis, ending no later than
September 30, 2013.
Order
In view of the foregoing and pursuant to the authority delegated to
me by the Secretary of Energy, I hereby confirm and approve on an
interim basis, effective October 1, 2008, attached Wholesale Power Rate
Schedules CBR-1-G, CSI-1-G, CEK-1-G, CM-1-G, CC-1-H, CK-1-G, CTV-1-G,
and Replacement-3. The rate schedules shall remain in effect on an
interim basis through September 30, 2013, unless such period is
extended or until FERC confirms and approves them or substitute rate
schedules on a final basis.
Dated: September 12, 2008.
Jeffrey F. Kupfer,
Acting Deputy Secretary.
Wholesale Power Rate Schedule CBR-1-G
Availability
This rate schedule shall be available to Big Rivers Electric
Corporation and includes the City of Henderson, Kentucky, (hereinafter
called the Customer).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 13,800 volts and
161,000 volts to the transmission system of Big Rivers Electric
Corporation.
Points of Delivery
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be
[[Page 54576]]
agreed upon by the Government and TVA.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment, and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of TVA on its side of the delivery
point.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
Big Rivers Electric Corporation--32.660%
City of Henderson, Kentucky--2.202%
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand.
Energy Charge
None.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all SEPA
customers outside TVA and served by TVA does not exceed 240 hours per
kilowatt of the total contract demands of these customers.
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[[Page 54577]]
[GRAPHIC] [TIFF OMITTED] TN22SE08.000
Wholesale Power Rate Schedule CSI-1-G
Availability
This rate schedule shall be available to Southern Illinois Power
Cooperative (hereinafter the Customer).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 13,800 volts and
161,000 volts to the transmission system of Big Rivers Electric
Corporation.
Points of Delivery
Capacity and energy delivered to the Customer will be delivered at
points of interconnection of the Customer at the Barkley Project
Switchyard, at a delivery point in the vicinity of the Paradise steam
plant and at such other points of delivery as may hereafter be agreed
upon by the Government and TVA.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay 5.138 percent of the credit the Administrator
of Southeastern Power Administration (Administrator) provides to the
Tennessee Valley Authority (TVA) as consideration for delivering
capacity and energy for the account of the Administrator to points of
delivery of Other Customers or interconnection points of delivery with
other electric systems for the benefit of Other Customers, as agreed by
contract between the Administrator and TVA.
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand.
Energy Charge
None.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the customer's contract demand. The
customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the customer's
contract demand; provided, that the combined schedule of all SEPA
customers outside TVA and served by TVA does not exceed 240 hours per
kilowatt of the total contract demands of these customers.
[[Page 54578]]
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.001
Wholesale Power Rate Schedule CEK-1-G
Availability
This rate schedule shall be available to East Kentucky Power
Cooperative (hereinafter called the Customer).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and power available from the Laurel
Project and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of the Customer.
Points of Delivery
The points of delivery will be the 161,000 volt bus of the Wolf
Creek Power Plant and the 161,000 volt bus of the Laurel Project. Other
points of delivery may be as agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Conditions of Service
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system. In so doing, the installation,
adjustment and setting of all such control and protective equipment at
or near the point of delivery shall be coordinated with that which is
installed by and at the expense of TVA on its side of the delivery
point.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U. S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay 31.192 percent of the credit the
Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered from Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$2.364 per kilowatt/month of total contract demand.
[[Page 54579]]
Energy Charge
9.392 mills per kilowatt-hour.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
customer from the Projects through the customer's interconnections with
TVA and the customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand plus 369 kilowatt-hours of energy delivered for each
kilowatt of contract demand to supplement energy available at the
Laurel Project. A contract year is defined as the 12 months beginning
July 1 and ending at midnight June 30 of the following calendar year.
The energy made available for a contract year shall be scheduled
monthly such that the maximum amount scheduled in any month shall not
exceed 240 hours per kilowatt of the customer's contract demand and the
minimum amount scheduled in any month shall not be less than 60 hours
per kilowatt of the customer's contract demand. The customer may
request and the Government may approve energy scheduled for a month
greater than 240 hours per kilowatt of the customer's contract demand;
provided, that the combined schedule of all SEPA customers outside TVA
and served by TVA does not exceed 240 hours per kilowatt of the total
contract demands of these customers.
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.002
Wholesale Power Rate Schedule CM-1-G
Availability
This rate schedule shall be available to the South Mississippi
Electric Power Association, Municipal Energy Agency of Mississippi, and
Mississippi Delta Energy Agency (hereinafter called the Customers).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Mississippi Power and Light.
Points of Delivery
The points of delivery will be at interconnection points of the
Tennessee Valley Authority system and the Mississippi Power and Light
system. Other points of delivery may be as agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Transmission Charge
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
Mississippi Delta Energy Agency--2.058%
Municipal Energy Agency of Mississippi--3.447%
South Mississippi EPA--9.358%
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from
[[Page 54580]]
capacity that can be scheduled and the remainder from energy, at
charges that will be determined at the time. Under alternative 2, the
cost of the TVA transmission credit will be passed to customers outside
the TVA System. This rate alternative will be in effect when the Corps
modifies operation of the Wolf Creek Project and the Center Hill
Project to allow some of the capacity scheduled. When the lake level
rises and capacity is available, the capacity will be allocated on an
interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand.
Energy Charge
None.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
Customer from the Projects through the Customer's interconnections with
TVA and the Customer will schedule and accept an allocation of 1500
kilowatt-hours of energy delivered at the TVA border for each kilowatt
of contract demand. A contract year is defined as the 12 months
beginning July 1 and ending at midnight June 30 of the following
calendar year. The energy made available for a contract year shall be
scheduled monthly such that the maximum amount scheduled in any month
shall not exceed 240 hours per kilowatt of the Customer's contract
demand and the minimum amount scheduled in any month shall not be less
than 60 hours per kilowatt of the Customer's contract demand. The
Customer may request and the Government may approve energy scheduled
for a month greater than 240 hours per kilowatt of the Customer's
contract demand; provided, that the combined schedule of all SEPA
Customers outside TVA and served by TVA does not exceed 240 hours per
kilowatt of the total contract demands of these Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced 1/12 for each month of that year prior to initial delivery of
such capacity.
Service Interruption
When delivery of capacity is interrupted or reduced due to
conditions on the Administrator's system beyond his control, the
Administrator will continue to make available the portion of his
declaration of energy that can be generated with the capacity
available.
For such interruption or reduction due to conditions on the
Administrator's system which have not been arranged for and agreed to
in advance, the demand charge for capacity made available will be
reduced as to the kilowatts of such capacity which have been
interrupted or reduced in accordance with the following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.003
Wholesale Power Rate Schedule CC-1-H
Availability
This rate schedule shall be available to public bodies and
cooperatives served through the facilities of Carolina Power & Light
Company, Western Division (hereinafter called the Customers).
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission system of Carolina Power & Light Company, Western
Division.
Points of Delivery
The points of delivery will be at interconnecting points of the
Tennessee Valley Authority system and the Carolina Power & Light
Company, Western Division system. Other points of delivery may be as
agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective, on the last
day of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
[[Page 54581]]
TVA Transmission Charge
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
French Broad EMC--1.713%
Haywood EMC--0.501%
Town of Waynesville--0.355%
CP&L Transmission Charge
The Customer will pay a ratable percent listed below of the charge
for transmission service furnished by Carolina Power & Light Company,
Western Division.
French Broad EMC--66.667%
Haywood EMC--19.512%
Town of Waynesville--13.821%
Energy To Be Furnished by the Government
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less applicable losses). The Customer's
contract demand and accompanying energy allocation will be divided pro
rata among its individual delivery points served from the Carolina
Power & Light Company's Western Division transmission system.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$4.027 per kilowatt/month of total contract demand.
Energy Charge
None.
CP&L Transmission Charge
$1.1022 per kilowatt/month of total contract demand.
The CP&L transmission rate is subject to annual adjustment on April
1 of each year and will be computed subject to the formula in Appendix
A attached to the Government-Carolina Power & Light Company contract.
Energy To Be Furnished by the Government
The Government will sell to the customer and the customer will
purchase from the Government energy each billing month equivalent to a
percentage specified by contract of the energy made available to
Carolina Power & Light Company (less six percent (6%) losses). The
Customer's contract demand and accompanying energy allocation will be
divided pro rata among its individual delivery points served from the
Carolina Power & Light Company's Western Division transmission system.
Wholesale Power Rate Schedule CK-1-G
Availability
This rate schedule shall be available to public bodies served
through the facilities of Kentucky Utilities Company (hereinafter
called the Customers.)
Applicability
This rate schedule shall be applicable to electric capacity and
energy available from the Dale Hollow, Center Hill, Wolf Creek,
Cheatham, Old Hickory, Barkley, J. Percy Priest and Cordell Hull
Projects (all of such projects being hereinafter called collectively
the ``Cumberland Projects'') and sold in wholesale quantities.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a nominal frequency of sixty hertz. The
power shall be delivered at nominal voltages of 161,000 volts to the
transmission systems of Kentucky Utilities Company.
Points of Delivery
The points of delivery will be at interconnecting points between
the Tennessee Valley Authority system and the Kentucky Utilities
Company system. Other points of delivery may be as agreed upon.
Billing Month
The billing month for power sold under this schedule shall end at
2400 hours CDT or CST, whichever is currently effective on the last day
of each calendar month.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U.S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide these customers with energy that did not
include capacity. The rates under Alternative 1 will remain in effect
for the duration of the Interim Operating Plan.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
[[Page 54582]]
Transmission Charge
The Customer will pay a ratable percent listed below of the credit
the Administrator of Southeastern Power Administration (Administrator)
provides to the Tennessee Valley Authority (TVA) as consideration for
delivering capacity and energy for the account of the Administrator to
points of delivery of Other Customers or interconnection points of
delivery with other electric systems for the benefit of Other
Customers, as agreed by contract between the Administrator and TVA.
City of Barbourville.................................... 0.404%
City of Bardstown....................................... 0.412%
City of Bardwell........................................ 0.099%
City of Benham.......................................... 0.046%
City of Corbin.......................................... 0.477%
City of Falmouth........................................ 0.108%
City of Frankfort....................................... 2.866%
City of Madisonville.................................... 1.432%
City of Nicholasville................................... 0.469%
City of Owensboro....................................... 4.587%
City of Paris........................................... 0.250%
City of Providence...................................... 0.226%
Energy To Be Furnished by the Government
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$3.538 per kilowatt/month of total contract demand
Energy Charge
None.
Additional Energy Charge
9.392 mills per kilowatt-hour.
Energy To Be Furnished by the Government
The Government shall make available each contract year to the
Customer from the Projects and the Customer will accept an allocation
of 1500 kilowatt-hours of energy for each kilowatt of contract demand.
A contract year is defined as the 12 months beginning July 1 and ending
at midnight June 30 of the following calendar year. The energy made
available for a contract year shall be scheduled monthly such that the
maximum amount scheduled in any month shall not exceed 240 hours per
kilowatt of the Customer's contract demand and the minimum amount
scheduled in any month shall not be less than 60 hours per kilowatt of
the Customer's contract demand. The Customer may request and the
Government may approve energy scheduled for a month greater than 240
hours per kilowatt of the Customer's contract demand; provided, that
the combined schedule of all SEPA Customers outside TVA and served by
TVA does not exceed 240 hours per kilowatt of the total contract
demands of these Customers.
In the event that any portion of the capacity allocated to the
Customers is not initially delivered to the Customers as of the
beginning of a full contract year, the 1500 kilowatt hours shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
For billing purposes, each kilowatt of capacity will include 1500
kilowatt-hours energy per year. Customers will pay for additional
energy at the additional energy rate.
Wholesale Power Rate Schedule CTV-1-G
Availability
This rate schedule shall be available to the Tennessee Valley
Authority (hereinafter called TVA).
Applicability
This rate schedule shall be applicable to electric capacity and
energy generated at the Dale Hollow, Center Hill, Wolf Creek, Old
Hickory, Cheatham, Barkley, J. Percy Priest, and Cordell Hull Projects
(all of such projects being hereafter called collectively the
``Cumberland Projects'') and the Laurel Project sold under agreement
between the Department of Energy and TVA.
Character of Service
The electric capacity and energy supplied hereunder will be three-
phase alternating current at a frequency of approximately 60 Hertz at
the outgoing terminals of the Cumberland Projects' switchyards.
Billing Month
The billing month for capacity and energy sold under this schedule
shall end at 2400 hours CDT or CST, whichever is currently effective,
on the last day of each calendar month.
Contract Year
For purposes of this rate schedule, a contract year shall be as in
Section 13.1 of the Southeastern Power Administration--Tennessee Valley
Authority Contract.
Power Factor
TVA shall take capacity and energy from the Department of Energy at
such power factor as will best serve TVA's system from time to time;
provided, that TVA shall not impose a power factor of less than .85
lagging on the Department of Energy's facilities which requires
operation contrary to good operating practice or results in overload or
impairment of such facilities.
Southeastern is including three rate alternatives. All of the rate
alternatives have a revenue requirement of $50,400,000.
Rate Alternative 1--Interim Operating Plan
The final marketing policy for the Cumberland System was published
in the Federal Register August 5, 1993 (58 FR 41762). The marketing
policy for the Cumberland System of Projects provides peaking capacity,
along with 1500 hours of energy annually with each kilowatt of
capacity, to customers outside the Tennessee Valley Authority (TVA)
transmission system. Due to restrictions on the operation of the Wolf
Creek Project and the Center Hill Project imposed by the U. S. Army
Corps of Engineers as a precaution to prevent failure of the dams,
Southeastern is not able to provide peaking capacity to these
customers. Southeastern implemented an Interim Operating Plan for the
Cumberland System to provide
[[Page 54583]]
these customers with energy that did not include capacity. The rates
under Alternative 1 will remain in effect for the duration of the
Interim Operating Plan.
Monthly Rates
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
None.
Energy Charge
12.67 mills per kilowatt-hour.
Energy To Be Made Available
The Customer will receive a ratable share of the energy made
available by the Nashville District of the U.S. Army Corps of
Engineers.
Rate Alternative 2--Cost Recovered From Capacity and Energy
This rate alternative will be implemented if a portion of the
Cumberland Capacity can be scheduled, though not all the capacity in
the published marketing policy can be scheduled. The revenue
requirement under this alternative is $50,400,000, the same as the
revenue requirement in Alternatives 1 and 3. The rate alternative 2
will receive revenues from capacity that can be scheduled and the
remainder from energy, at charges that will be determined at the time.
Under alternative 2, the cost of the TVA transmission credit will be
passed to customers outside the TVA System. This rate alternative will
be in effect when the Corps modifies operation of the Wolf Creek
Project and the Center Hill Project to allow some of the capacity
scheduled. When the lake level rises and capacity is available, the
capacity will be allocated on an interim basis to the customers.
Rate Alternative 3--Original Cumberland Marketing Policy
The third rate alternative will go into effect once the Corps lifts
all restrictions on the operation of the Wolf Creek Dam and Center Hill
Dam and Southeastern returns to operations that support the published
marketing policy.
Monthly Rate
The monthly rate for capacity and energy sold under this rate
schedule shall be:
Demand Charge
$2.072 per kilowatt/month of total contract demand.
Energy Charge
None.
Additional Energy Charge
9.392 mills per kilowatt-hour.
Energy To Be Made Available
The Department of Energy shall determine the energy that is
available from the projects for declaration in the billing month.
To meet the energy requirements of the Department of Energy's
customers outside the TVA area (hereinafter called Other Customers),
768,000 megawatt-hours of net energy shall be available annually
(including 36,900 megawatt-hours of annual net energy to supplement
energy available at Laurel Project). The energy requirement of the
Other Customers shall be available annually, divided monthly such that
the maximum available in any month shall not exceed 240 hours per
kilowatt of total Other Customers contract demand, and the minimum
amount available in any month shall not be less than 60 hours per
kilowatt of total Other Customers demand.
In the event that any portion of the capacity allocated to Other
Customers is not initially delivered to the Other Customers as of the
beginning of a full contract year, (July through June), the 1500 hours,
plus any such additional energy required as discussed above, shall be
reduced \1/12\ for each month of that year prior to initial delivery of
such capacity.
The energy scheduled by TVA for use within the TVA System in any
billing month shall be the total energy delivered to TVA less (1) an
adjustment for fast or slow meters, if any, (2) an adjustment for
Barkley-Kentucky Canal of 15,000 megawatt-hours of energy each month
which is delivered to TVA under the agreement from the Cumberland
Projects without charge to TVA, (3) the energy scheduled by the
Department of Energy in said month for the Other Customers plus losses
of two (2) percent, and (4) station service energy furnished by TVA.
Each kilowatt of capacity will include 1500 kilowatt-hours of
energy per year, which is defined as base energy. Energy received in
excess of 1500 kilowatt-hours per kilowatt will be subject to an
additional energy charge identified in the monthly rates section of
this rate schedule.
Service Interruption
When delivery of capacity to TVA is interrupted or reduced due to
conditions on the Department of Energy's system that are beyond its
control, the Department of Energy will continue to make available the
portion of its declaration of energy that can be generated with the
capacity available.
For such interruption or reduction (exclusive of any restrictions
provided in the agreement) due to conditions on the Department of
Energy's system which have not been arranged for and agreed to in
advance, the demand charge for scheduled capacity made available to TVA
will be reduced as to the kilowatts of such scheduled capacity which
have been so interrupted or reduced for each day in accordance with the
following formula:
[GRAPHIC] [TIFF OMITTED] TN22SE08.004
Wholesale Rate Schedule Replacement--3
Availability
This rate schedule shall be available to public bodies and
cooperatives ( any one of whom is hereinafter called the Customer) in
Virginia, North Carolina, Tennessee, Georgia, Alabama, Mississippi,
Kentucky and southern Illinois to whom power is provided pursuant to
contracts between the Government and the customer from the Dale Hollow,
Center Hill, Wolf Creek, Cheatham, Old Hickory, Barkley, J. Percy
Priest, Cordell Hull, and Laurel Projects (all of such projects being
hereinafter called collectively the ``Cumberland Projects'').
Applicability
This rate schedule shall be applicable to the sale of wholesale
energy purchased to meet contract minimum energy sold under appropriate
contracts between the Government and the Customer.
[[Page 54584]]
Character of Service
The energy supplied hereunder will be delivered at the delivery
points provided for under appropriate contracts between the Government
and the Customer.
Monthly Charge
The rate for replacement energy will be a formulary capacity charge
based on the monthly cost to the Government to purchase replacement
energy necessary to support capacity in the Cumberland System divided
by the capacity available from the Cumberland System, which is 950,000
kilowatts in the published power marketing policy. The capacity rate
will be adjusted for any capacity retained by the Customer's
transmission facilitator.
Conditions of Service
The customer shall at its own expense provide, install, and
maintain on its side of each delivery point the equipment necessary to
protect and control its own system.
[FR Doc. E8-22097 Filed 9-19-08; 8:45 am]
BILLING CODE 6450-01-P