
[Federal Register: October 13, 2009 (Volume 74, Number 196)]
[Notices]               
[Page 52485-52486]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13oc09-66]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EF09-2011-000]

 
United States Department of Energy--Bonneville Power 
Administration; Order Approving Rates on an Interim Basis and Providing 
Opportunity for Additional Comments

September 28, 2009.
    Summary: On July 31, 2009, and September 3, 2009, the Bonneville 
Power Administration (Bonneville) filed a request for interim and final 
approval of its wholesale power \1\ and transmission rates \2\ in 
accordance with the Pacific Northwest Electric Power Planning and 
Conservation Act (Northwest Power Act) \3\ and Subpart B of Part 300 of 
the Commission's regulations.\4\ Bonneville projects that the filed 
rates will produce average annual power revenues of $2.925 billion, and 
average annual revenues from transmission and ancillary services rates 
of $866 million. Bonneville asserts that this level of annual revenues 
is sufficient to recover its costs for the 2009-2011 rate approval 
period, while providing cash flow to assure at least a 95 percent 
probability of making all payments to the United States Treasury in 
full and on time for each year of the rate period.
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    \1\ The proposed wholesale power rates for which Bonneville 
seeks approval for the period October 1, 2009 through September 30, 
2011, include: Priority Firm Power Rate (PF-10); New Resource Firm 
Power Rate (NR-10); Industrial Firm Power Rate (IP-10); Firm Power 
Products and Services Rate (FPS-10); General Transfer Agreement 
Service Rate (GTA-10); and Power General Rates Schedule Provisions 
(GRSPs).
    \2\ The proposed transmission rates for which Bonneville seeks 
approval for the period October 1, 2009, through September 30, 2011, 
include: Formula Power Transmission Rate (FPT-10.1), Formula Power 
Transmission Rate (FPT-10.3); Integration of Resources Rate (IR-10); 
Network Integration Rate (NT-10); Point-to-Point Rate (PTP-10); 
Southern Intertie Rate (IS-10); Montana Intertie Rate (IM-10); Use-
of-Facilities Transmission Rate (UFT-10); Advance Funding Rate (AF-
10); Ancillary Services and Control Area Services Rates (ACS-10); 
Townsend-Garrison Transmission Rate (TGT-10); Eastern Intertie Rate 
(IE-10); and Transmission General Rate Schedule Provisions (GRSPs).
    \3\ 16 U.S.C. 839e(i) (2006).
    \4\ 18 CFR Part 300 (2009).
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    Notice of Bonneville's July 31, 2009, application was published in 
the Federal Register, 74 FR 42,068 (2009), with protests, or motions to 
intervene due on or before August 31, 2009. The Association of Public 
Agency Customers, Alcoa Inc, Avista Corporation, Clatskanie People's 
Utility District, Eugene Water and Electric Board, Iberdrola 
Renewables, Inc., Idaho Power Company, Idaho Public Utilities 
Commission, Industrial Customers of Northwest Utilities, Northwest 
Requirements Utilities,\5\ Northwest Wind Group,\6\ PacifiCorp, 
Portland General Electric Company, Powerex Corp., Public Power Council, 
Puget Sound Energy, Inc., and Tillamook People's Utility District filed 
timely motions to intervene, raising no substantive issues. Notices of 
interventions and unopposed timely filed motions to intervene are 
granted pursuant to the operation of Rule 214 of the Commission's Rules 
of Practice and Procedure (18 CFR 385.214). Any opposed or untimely 
filed motion to

[[Page 52486]]

intervene is governed by the provisions of Rule 214.
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    \5\ They comprise various municipalities, public utility 
districts, cooperatives, etc., and they seek to intervene jointly 
and also individually.
    \6\ The Northwest Wind Group is an unincorporated Bonneville 
customer group comprising Renewable Northwest Project and wind 
developers BP America, Inc., Columbia Energy Partners LLC, enXco 
Development Corporation, Horizon Wind Energy and RES America 
Developments Inc. Renewable Northwest Project is an advocacy 
organization representing numerous environmental and consumer 
groups, renewable resource developers, energy efficiency companies, 
and manufacturers of renewable energy products.
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    Notice of Bonneville's September 3, 2009, errata corrections was 
published in the Federal Register, 74 FR 47,243 (2009), with protests, 
or motions to intervene due on or before September 15, 2009. None were 
filed.

Standard of Review

    Under the Northwest Power Act, the Commission's review of 
Bonneville's regional power and transmission rates is limited to 
determining whether Bonneville's proposed rates meet the three specific 
requirements of section 7(a)(2) of the Northwest Power Act:\7\
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    \7\ 16 U.S.C. 839e(a)(2) (2006). Bonneville also must comply 
with the financial, accounting, and ratemaking requirements in 
Department of Energy Order No. RA 6120.2.
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    (A) They must be sufficient to assure repayment of the Federal 
investment in the Federal Columbia River Power System over a reasonable 
number of years after first meeting Bonneville's other costs;
    (B) They must be based upon Bonneville's total system costs; and
    (C) Insofar as transmission rates are concerned, they must 
equitably allocate the costs of the Federal transmission system between 
Federal and non-Federal power.
    Commission review of Bonneville's non-regional, non-firm rates also 
is limited. Review is restricted to determining whether such rates meet 
the requirements of section 7(k) of the Northwest Power Act,\8\ which 
requires that they comply with the Bonneville Project Act, the Flood 
Control Act of 1944, and the Federal Columbia River Transmission System 
Act (Transmission System Act). Taken together, those statutes require 
that Bonneville's non-regional, non-firm rates:
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    \8\ 16 U.S.C. 839e(k) (2006).
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    (A) Recover the cost of generation and transmission of such 
electric energy, including the amortization of investments in the power 
projects within a reasonable period;
    (B) Encourage the most widespread use of Bonneville power; and
    (C) Provide the lowest possible rates to consumers consistent with 
sound business principles.
    Unlike the Commission's statutory authority under the Federal Power 
Act, the Commission's authority under sections 7(a) and 7(k) of the 
Northwest Power Act does not include the power to modify the rates. The 
responsibility for developing rates in the first instance is vested 
with Bonneville's Administrator. The rates are then submitted to the 
Commission for approval or disapproval. In this regard, the 
Commission's role can be viewed as an appellate one: to affirm or 
remand the rates submitted to it for review.\9\
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    \9\ E.g., United States Department of Energy--Bonneville Power 
Administration, 67 FERC ] 61,351 at 62,216-17 (1994); see also, 
e.g., Aluminum Co. of America v. Bonneville Power Administration, 
903 F.2d 585, 592-93 (9th Cir. 1989).
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    Moreover, review at this interim stage is further limited. In view 
of the volume and complexity of a Bonneville rate application, such as 
the one now before the Commission in this filing, and the limited 
period in advance of the requested effective date in which to review 
the application,\10\ the Commission generally defers resolution of 
issues on the merits of Bonneville's application until the order on 
final confirmation. Thus, the proposed rates, if not patently 
deficient, generally are approved on an interim basis and the parties 
are afforded an additional opportunity in which to raise issues with 
regard to Bonneville's filing.\11\
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    \10\ See 18 CFR 300.10(a)(3)(ii) (2009).
    \11\ See, e.g., United States Department of Energy--Bonneville 
Power Administration, 64 FERC ] 61,375 at 63,606 (1993); United 
States Department of Energy--Bonneville Power Administration, 40 
FERC ] 61,351 at 62,059-60 (1987).
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    The Commission declines at this time to grant final confirmation 
and approval of Bonneville's proposed wholesale power and transmission 
rates. The Commission's preliminary review nevertheless indicates that 
Bonneville's wholesale power and transmission rates filing appears to 
meet the statutory standards and the minimum threshold filing 
requirements of Part 300 of the Commission's regulations.\12\ Moreover, 
the Commission's preliminary review of Bonneville's submittal indicates 
that it does not contain any patent deficiencies. The proposed rates 
therefore will be approved on an interim basis pending our full review 
for final approval. We note, as well, that no one will be harmed by 
this decision because interim approval allows Bonneville's rates to go 
into effect subject to refund with interest; the Commission may order 
refunds with interest if the Commission later determines in its final 
decision not to approve the rates.\13\
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    \12\ See, e.g., United States Department of Energy--Bonneville 
Power Administration, 105 FERC ] 61,006 at P13-14 (2003); United 
States Department of Energy--Bonneville Power Administration, 96 
FERC ] 61,360 at 62,358 (2001).
    \13\ 18 CFR 300.20(c) (2009).
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    In addition, we will provide an additional period of time for 
parties to file comments and reply comments on issues related to final 
confirmation and approval of Bonneville's proposed rates. This will 
ensure that the record in this proceeding is complete and fully 
developed.

The Director

    Interim approval of Bonneville's proposed wholesale power and 
transmission rates is hereby granted, to become effective on October 1, 
2009, through September 30, 2011, subject to refund with interest as 
set forth in section 300.20(c) of the Commission's regulations, 18 CFR 
300.20(c) (2009), pending final action and either their approval or 
disapproval.
    Within thirty (30) days of the date of this order, parties who wish 
to do so may file additional comments regarding final confirmation and 
approval of Bonneville's proposed rates. Parties who wish to do so may 
file reply comments within twenty (20) days thereafter.
    The Secretary shall promptly publish this order in the Federal 
Register.

Authorities

    This action is taken pursuant to authority delegated to the 
Director, Division of Tariffs and Market Development--Central, under 18 
CFR 375.307 of the Commission's Regulations. This order constitutes 
final agency action. Requests for rehearing by the Commission may be 
filed within 30 days of the date of issuance of this order pursuant to 
18 CFR 385.713.

Penny S. Murrell,
Director, Division of Tariffs and Market Development--Central.
[FR Doc. E9-24545 Filed 10-9-09; 8:45 am]
