FR 2025-02626

The document titled "Provo River Project-Rate Order No. WAPA-221" announces the interim approval of a provisional formula rate for the Provo River Project's electric service. Issued by the Western Area Power Administration (WAPA), it highlights the transition from an existing rate schedule (PR-2) set to expire on March 31, 2025, to a new rate schedule (PR-3) effective from April 1, 2025, through March 31, 2030. Although the formula calculation itself remains unchanged, the document notes updates to contract references involved with these services. Importantly, this provisional rate remains pending for final approval by the Federal Energy Regulatory Commission (FERC) and could potentially be replaced by another rate sooner if circumstances necessitate.

General Summary

The core message of the document is about the implementation of a new provisional formula rate for the electric service associated with the Provo River Project. The rate initiative is mainly a replacement of administrative references and does not alter the existing formula calculations for the billing of electricity provided by CRSP MC – part of the wider Colorado River Storage Project managed by WAPA. The transition from PR-2 to PR-3 is portrayed as routine, with stipulations around its interim status pending regulatory approval from FERC.

Significant Issues or Concerns

1. Complex Legal References: The document is laden with references to previous legal and order documents, such as delegation and redelegation orders, which may be challenging to follow for readers not accustomed to legal and bureaucratic jargon. This reliance on cross-referenced documents might cause confusion without an accessible method for lay audiences to navigate them.

2. Technical Terminology: Concepts such as "Power Repayment Study," "Revenue Requirement," and "Surplus Marketable Energy" are extensively used but may not be familiar to general audiences, potentially causing misunderstandings or the need for additional explanation.

3. Public Engagement: Despite following procedural norms for public notification, the document's approach may not effectively reach or engage the public or stakeholders who may not prioritize Federal Register notices. This could result in insufficient awareness or input from impacted parties.

Public Impact

Broad Impact: For the general public, this document highlights a necessary administrative update within the government to ensure continuity in the way electric services are billed under federal jurisdiction. While the update doesn't affect the pricing scheme directly, its procedural nature underscores the complexity inherent in navigating public energy administration.

Specific Stakeholders: For stakeholders like municipal utilities, public corporations, or cooperative agencies affected by the Provo River Project, the document contains critical information. The switch to PR-3 could mean varying interpretations of new contract references, which may indirectly affect billing procedures or long-term contract negotiations.

Positive and Negative Impacts

Positive: The continuity of the formula rate without fluctuations in policy ensures stability in billing and fosters trust in consistent long-term planning for both WAPA and its contracted service partners.

Negative: The interim nature indicates a lingering uncertainty until FERC gives final approval. This period of provisional status offers little room for stakeholder comment beyond the provided consultation period, potentially leading to disenfranchisement among smaller stakeholders who may feel sidelined in this bureaucratic process.

Overall, while the document signifies a procedural maintenance under WAPA's administration, it draws attention to the ongoing discourse between government policy frameworks and how they affect the country's energy infrastructure.