[Federal Register Volume 75, Number 51 (Wednesday, March 17, 2010)]
[Notices]
[Pages 12740-12743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5801]
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DEPARTMENT OF ENERGY
Southeastern Power Administration
Proposed Rate Adjustment, Public Forum, and Opportunities for
Public Review and Comment for Georgia-Alabama-South Carolina System of
Projects
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of proposed rate.
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SUMMARY: Southeastern Power Administration (Southeastern) proposes to
revise existing schedules of rates and charges applicable to the sale
of power from the Georgia-Alabama-South Carolina System of Projects
effective for a 5-year period, October 1, 2010, through September 30,
2015. Additionally, opportunities will be
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available for interested persons to review the present rates and the
proposed rates and supporting studies, to participate in a public
forum, and to submit written comments. Southeastern will evaluate all
comments received in this process.
DATES: Written comments are due on or before June 15, 2010. A public
information and comment forum will be held in Atlanta, Georgia, at 10
a.m., on April 29, 2010. Persons desiring to speak at the forum should
notify Southeastern at least three (3) days before the forum is
scheduled, so that a list of forum participants can be prepared. Others
may speak if time permits.
ADDRESSES: Written comments should be submitted to: Administrator,
Southeastern Power Administration, Department of Energy, 1166 Athens
Tech Road, Elberton, Georgia, 30635-6711. The public information and
comment forum for the Georgia-Alabama-South Carolina System of Projects
will be at the Sheraton Gateway Atlanta Airport, 1900 Sullivan Road,
Atlanta, Georgia 30337 (770) 997-1100.
FOR FURTHER INFORMATION CONTACT: Leon Jourolmon, Assistant
Administrator, Finance & Marketing, Southeastern Power Administration,
Department of Energy, 1166 Athens Tech Road, Elberton, Georgia 30635,
(706) 213-3800.
SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission
(FERC) by order issued April 8, 2008 (123 FERC ] 62,022), confirmed and
approved on a final basis Wholesale Power Rate Schedules SOCO-1-C,
SOCO-2-C, SOCO-3-C,SOCO-4-C, ALA-1-L, MISS-1-L, Duke-1-C, Duke-2-C,
Duke-3-C, Duke-4-C, Santee-1-C, Santee-2-C, Santee-3-C, Santee-4-C,
SCE&G-1-C, SCE&G-2-C, SCE&G-3-C, SCE&G-4-C, Pump-1-A, Pump-2,
Regulation-1 and Replacement-1 applicable to Georgia-Alabama-South
Carolina System of Projects' power for a period ending September 30,
2012.
Discussion: Existing rate schedules are predicated upon a July 2006
repayment study and other supporting data that was adopted prior to the
completion of a final cost allocation for the Richard B. Russell
Project. The final cost allocation for the Richard B. Russell Project
was adopted on March 25, 2008. Southeastern prepared a repayment study
in February 2010 with the cost adjustments necessary to comply with the
final cost allocation. This repayment study demonstrates that the
existing rates are not adequate to meet repayment criteria.
Southeastern is proposing to establish new rates that will recoup these
unrecovered costs.
A revised study with a revenue increase of $27,679,000 in fiscal
year 2011 and all future years over the current repayment study shows
that all costs are repaid within their service life. Therefore,
Southeastern is proposing to revise the existing rates to generate this
additional revenue. The rate adjustment is an increase of about fifteen
percent.
Four reversible pumped storage units have been installed at the
Richard B. Russell Project. Construction of these units was completed
in Fiscal Year 1993. However, due to litigation, these units were not
available for commercial operation until Fiscal Year 2002.
Southeastern's customers have suggested the cost of interest during
construction from 1993 should not be allocated to power for repayment.
The U.S. Army Corps of Engineers has provided Southeastern with
financial statements that show $223,733,000 was charged to interest
during construction at the Russell Project for the period from Fiscal
Year 1993 through Fiscal Year 2002. Southeastern has computed an
additional $115,466,000 of interest for the period from Fiscal Year
2002 through Fiscal Year 2009. The total interest for the period from
1993 through 2009 is $339,198,000. Consistent with the comments
received, Southeastern's proposed rates do not include these costs
because Southeastern believes that exclusion of the disputed costs
should be discussed further at the public forum.
Southeastern is proposing the following rate schedules to be
effective for the period from October 1, 2010, through September 30,
2015.
Rate Schedule SOCO-1-D
Available to public bodies and cooperatives in Georgia, Alabama,
Mississippi, and Florida to whom power may be wheeled and scheduled
pursuant to contracts between the Government and Southern Company
Services, Incorporated.
Rate Schedule SOCO-2-D
Available to public bodies and cooperatives in Georgia, Alabama,
Mississippi, and Florida to whom power may be wheeled pursuant to
contracts between the Government and Southern Company Services,
Incorporated. The customer is responsible for providing a scheduling
arrangement with the Government.
Rate Schedule SOCO-3-D
Available to public bodies and cooperatives in Georgia, Alabama,
Mississippi, and Florida to whom power may be scheduled pursuant to
contracts between the Government and Southern Company Services,
Incorporated. The customer is responsible for providing a transmission
arrangement.
Rate Schedule SOCO-4-D
Available to public bodies and cooperatives in Georgia, Alabama,
Mississippi, and Florida served through the transmission facilities of
Southern Company Services, Inc. The customer is responsible for
providing a scheduling arrangement with the Government and for
providing a transmission arrangement.
Rate Schedule ALA-1-M
Available to PowerSouth Energy Cooperative.
Rate Schedule MISS-1-M
Available to the South Mississippi Electric Power Association to
whom power may be wheeled pursuant to contract between the Government
and PowerSouth Energy Cooperative.
Rate Schedule Duke-1-D
Available to public bodies and cooperatives in North Carolina and
South Carolina to whom power may be wheeled and scheduled pursuant to
contracts between the Government and Duke Power Company.
Rate Schedule Duke-2-D
Available to public bodies and cooperatives in North Carolina and
South Carolina to whom power may be wheeled pursuant to contracts
between the Government and Duke Power Company. The customer is
responsible for providing a scheduling arrangement with the Government.
Rate Schedule Duke-3-D
Available to public bodies and cooperatives in North Carolina and
South Carolina to whom power may be scheduled pursuant to contracts
between the Government and Duke Power Company. The customer is
responsible for providing a transmission arrangement.
Rate Schedule Duke-4-D
Available to public bodies and cooperatives in North Carolina and
South Carolina served through the transmission facilities of Duke Power
Company. The customer is responsible for providing a scheduling
arrangement with the Government and for providing a transmission
arrangement.
Rate Schedule Santee-1-D
Available to public bodies and cooperatives in South Carolina to
whom
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power may be wheeled and scheduled pursuant to contracts between the
Government and South Carolina Public Service Authority.
Rate Schedule Santee-2-D
Available to public bodies and cooperatives in South Carolina to
whom power may be wheeled pursuant to contracts between the Government
and South Carolina Public Service Authority. The customer is
responsible for providing a scheduling arrangement with the Government.
Rate Schedule Santee-3-D
Available to public bodies and cooperatives in South Carolina to
whom power may be scheduled pursuant to contracts between the
Government and South Carolina Public Service Authority. The customer is
responsible for providing a transmission arrangement.
Rate Schedule Santee-4-D
Available to public bodies and cooperatives in South Carolina
served through the transmission facilities of South Carolina Public
Service Authority. The customer is responsible for providing a
scheduling arrangement with the Government and for providing a
transmission arrangement.
Rate Schedule SCE&G-1-D
Available to public bodies and cooperatives in South Carolina to
whom power may be wheeled and scheduled pursuant to contracts between
the Government and South Carolina Electric & Gas Company.
Rate Schedule SCE&G-2-D
Available to public bodies and cooperatives in South Carolina to
whom power may be wheeled pursuant to contracts between the Government
and South Carolina Electric & Gas Company. The customer is responsible
for providing a scheduling arrangement with the Government.
Rate Schedule SCE&G-3-D
Available to public bodies and cooperatives in South Carolina to
whom power may be scheduled pursuant to contracts between the
Government and South Carolina Electric & Gas Company. The customer is
responsible for providing a transmission arrangement.
Rate Schedule SCE&G-4-D
Available to public bodies and cooperatives in South Carolina
served through the transmission facilities of South Carolina Electric &
Gas Company. The customer is responsible for providing a scheduling
arrangement with the Government and for providing a transmission
arrangement.
Rate Schedule Pump--1-A
Available to all customers of the Georgia-Alabama-South Carolina
System and applicable to energy from pumping operations at the Carters
and Richard B. Russell projects.
Rate Schedule Pump--2
Available to public bodies and cooperatives who provide their own
scheduling arrangement and elect to allow Southeastern to use a portion
of their allocation for pumping.
Rate Schedule Regulation--1
Available to public bodies and cooperatives in Georgia, Alabama,
Mississippi, Florida, South Carolina, or North Carolina to whom
regulation service is provided pursuant to contracts between the
Government and the customer.
Rate Schedule Replacement--1
Available to all customers in the Georgia-Alabama-South Carolina
System and applicable to replacement energy.
The proposed rates for capacity, energy, and generation services
are as follows:
Capacity: $4.48 per kW per month.
Energy: 11.43 mills per kWh.
Generation Services: $0.12 per kW per month.
Under this scenario, 75 per cent of generation revenues are
recovered from capacity sales and 25 per cent are recovered from energy
sales. These rates are expected to produce an average revenue increase
of $27,679,000 in FY 2011 and all future years.
The rates for transmission, scheduling, reactive supply, and
regulation and frequency response apply to all four scenarios and are
illustrated in Table 1.
Southeastern Power Administration Proposed Rates for Transmission Scheduling, Reactive, and Regulation Charges
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Transmission Scheduling Reactive Regulation
Rate schedule charge ($/kW/ charge $/kW/ charge $/kW/ charge $/kW/
month) month month month
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SOCO-1-D........................................ 2.69 0.0806 0.11 0.0483
SOCO-2-D........................................ 2.69 N/A 0.11 N/A
SOCO-3-D........................................ N/A 0.0806 N/A 0.0483
SOCO-4-D........................................ N/A N/A N/A N/A
ALA-1-M......................................... N/A N/A N/A N/A
MISS-1-M........................................ 2.62 N/A N/A N/A
Duke-1-D........................................ 0.94 N/A N/A N/A
Duke-2-D........................................ 0.94 N/A N/A N/A
Duke-3-D........................................ N/A N/A N/A N/A
Duke-4-D........................................ N/A N/A N/A N/A
Santee-1-D...................................... 1.32 N/A N/A N/A
Santee-2-D...................................... 1.32 N/A N/A N/A
Santee-3-D...................................... N/A N/A N/A N/A
Santee-4-D...................................... N/A N/A N/A N/A
SCE&G-1-D....................................... 1.02 N/A N/A N/A
SCE&G-2-D....................................... 1.02 N/A N/A N/A
SCE&G-3-D....................................... N/A N/A N/A N/A
SCE&G-4-D....................................... N/A N/A N/A N/A
Pump--1-A....................................... N/A N/A N/A N/A
Pump--2......................................... N/A N/A N/A N/A
Regulation-1.................................... N/A N/A N/A 0.05
Replacement-1................................... N/A N/A N/A N/A
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The referenced repayment studies are available for examination at
1166 Athens Tech Road, Elberton, Georgia 30635-6711. Proposed Rate
Schedules SOCO-1-D, SOCO-2-D, SOCO-3-D, SOCO-4-D, ALA-1-M, MISS-1-M,
Duke-1-D, Duke-2-D, Duke-3-D, Duke-4-D, Santee-1-D, Santee-2-D, Santee-
3-D, Santee-4-D, SCE&G-1-D, SCE&G-2-D, SCE&G-3-D, SCE&G-4-D, Pump-1-A,
Pump-2, Regulation-1, and Replacement-1 are also available.
Dated: March 10, 2010.
Kenneth E. Legg,
Administrator.
[FR Doc. 2010-5801 Filed 3-16-10; 8:45 am]
BILLING CODE 6450-01-P