FR 2024-30863

The document at hand is a notice from the Western Area Power Administration (WAPA), which is proposing new formula rates for services provided under the Colorado River Storage Project (CRSP). These new rates are contingent on CRSP's decision to join the Southwest Power Pool (SPP), a Regional Transmission Organization. The intention is for these rates to recover costs linked to transmission and ancillary services, coming into effect on April 1, 2026, and remaining active for five years thereafter.

Summary

The Colorado River Storage Project Management Center (CRSP MC) of WAPA is considering joining the SPP to streamline its transmission and ancillary services. This document acts as a formal proposal for new formula rates to manage costs if CRSP MC becomes a part of this organization. Implementation of these rates is scheduled to start in 2026, coinciding with an expansion of the SPP's Regional Transmission Organization into the Western Interconnection. Stakeholders are invited to partake in public consultation between December 2024 and March 2025, during which virtual forums will provide further insights into the proposed changes.

Significant Issues and Concerns

Several issues have surfaced that warrant attention:

• Lack of Detailed Cost Breakdown: The document does not offer a clear, itemized list of costs associated with the proposed formula rates. Stakeholders may find it challenging to evaluate the proposal's economic efficiency without this information.

• Complex Language: The document is riddled with technical jargon, potentially obfuscating essential details from a general audience.

• Unclear Facility Control: The document fails to explicitly differentiate which facilities will remain under WAPA's control and which will transfer to the SPP, presenting potential for stakeholder confusion.

• Inadequate Rationale for Changes: There is no detailed explanation for changes in current rate schedules, leaving stakeholders in the dark about the necessity and implications of these adjustments.

• Limited Discussion on Alternatives: The document primarily assumes CRSP MC’s membership in SPP and does not extensively explore scenarios if this membership does not occur.

Broad Public Impact

For the general public, the transition to a new rate structure could imply changes in how electricity and related services are priced. If implemented, the new rates could potentially impact costs passed down to consumers who rely on electricity from CRSP sources. Public interests may center on ensuring that any new costs are justified and beneficial.

Impact on Stakeholders

Specific stakeholders, particularly those directly involved with or reliant on the CRSP transmission grid, may face direct financial impacts due to changes in cost-sharing structures under the SPP tariff. These stakeholders need transparency and justifications for new cost allocations and how they impact their operations.

• Positive Impact: For stakeholders seeking streamlined operations within the SPP framework, the proposal might simplify transactions and ensure a more regionalized approach to resource management and service standardization.

• Negative Impact: Existing customers may experience uncertainty, especially if rates rise or if significant operational changes occur without thorough public input or clear communication.

Overall, while promising improvements in efficiency and integration into the larger grid, the proposal leaves much to the imagination regarding costs and specific adjustments, necessitating more transparent communication and detailed planning to ensure all concerned parties are adequately informed and prepared for upcoming changes.