Overview
Title
Sierra Nevada Region Pacific Alternating Current Intertie Point-to-Point Transmission Service-Rate Order No. WAPA-211
Agencies
ELI5 AI
The people in charge of a big electricity system want to change the prices for sending electricity through some wires from 2025 to 2030. They plan to talk about these changes and ask people what they think before deciding.
Summary AI
The Sierra Nevada Region of the Western Area Power Administration (WAPA), part of the Department of Energy, has announced a proposal for new long-term formula rates for the Pacific Alternating Current Intertie (PACI) transmission services. These rates are set to take effect from October 1, 2025, through September 30, 2030. The proposal includes a cost-based formula rate for Statutory Service as well as new equitable rates for non-Statutory Service surplus capacity sales. Public consultation and comment on these proposed rates will begin on April 23, 2025, and conclude on July 22, 2025, with public forums conducted virtually in June 2025.
Abstract
The Sierra Nevada Region (SN) of the Western Area Power Administration (WAPA) proposes new long-term formula rates to become effective October 1, 2025, through September 30, 2030 for Pacific Alternating Current Intertie (PACI) Point-to-Point (PTP) transmission services. SN is proposing a cost-based formula rate for Statutory Service and two new equitable formula rates for sale of surplus capacity for non-Statutory Service. SN also proposes to supersede certain formula rates for short-term sales on the PACI, PACI-T4 and PACI-T5, (approved under Delegation Order No. S3-DEL-WAPA1-2023, Section 1.4.B) with these proposed long-term formula rates.
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Sources
AnalysisAI
The Federal Register has published a notice from the Western Area Power Administration (WAPA), part of the Department of Energy, regarding new long-term formula rates for the Pacific Alternating Current Intertie (PACI) transmission services. These proposed rates are intended to take effect from October 1, 2025, to September 30, 2030. The proposal includes a cost-based formula rate for statutory services and new equitable rates for non-statutory service surplus capacity sales. Public consultations are opened from April 23 to July 22, 2025, with virtual forums scheduled in June.
General Overview
WAPA's proposal outlines changes in transmission service rates for the Sierra Nevada Region, specifically affecting the PACI line. This entails a shift from short-term to long-term formula rates and incorporates equitable rate models intended to benefit the Central Valley Project. These proposed changes aim to ensure that adequate revenue is generated to cover operational and capital costs while allowing surplus capacity to be sold at equitable rates.
Significant Issues and Concerns
Several concerns emerge upon reviewing the document. First, the absence of a clear explanation for the proposed equitable formula rates introduces ambiguity. Stakeholders may find it challenging to assess the fairness of these rates without detailed calculations or methodologies. Additionally, while the document mentions benefits to the Central Valley Project, it lacks specifics in terms of quantitative data or practical implications, rendering the supportive claims vague.
The legal authority section is dense with technical jargon and complex delegation chains, potentially overwhelming to the average reader. Another area of concern is the environmental compliance segment, which states ongoing considerations for an environmental assessment but offers no timetable or decision updates. This could introduce uncertainty for projects with environmental implications.
Finally, an exemption from Executive Order 12866 for regulatory review is noted without context or justification, potentially leaving readers questioning the necessity or implications of such an exemption.
Public Impact
For the general public, the outcomes from these proposed rates might influence electricity pricing and service stability in the Sierra Nevada region. The extended consultation period allows for public input, which is crucial for incorporating community concerns and perspectives. However, the technical nature of the document may deter broader public engagement due to its complexity.
Stakeholder Impacts
For specific stakeholders such as utility companies, government bodies, environmental groups, and regional power consumers, these proposed rates could have significant financial and operational implications. Utility companies could face new cost structures, influencing their transmission pricing models. Moreover, if the rates lead to increased transmission costs, these may ultimately be passed on to consumers.
Environmental advocacy groups might express concern over the lack of clarity around environmental assessments, seeking more concrete commitments or timelines. Conversely, the Department of Energy's delegation structure and exemption from centralized regulatory review might streamline implementation for WAPA, potentially speeding up the enactment of these rates.
Overall, while WAPA's notice provides a necessary framework for future rate structures, clearer communication and explanation are essential to ensuring transparency and garnering informed stakeholder participation.
Issues
• The document does not provide specific details on how the equitable formula rates will be calculated, which can lead to ambiguity in understanding the proposed changes.
• The description of how the proposed rates will aid and benefit the Central Valley Project is vague and lacks quantitative data or specific examples.
• The information on the legal authority is complex, with multiple delegations of authority, which could be difficult for some readers to follow.
• The section on environmental compliance states that WAPA is determining if an environmental assessment is needed, but there is no timeline provided for this decision, leading to uncertainty.
• The mention of Executive Order 12866 and the exemption from centralized regulatory review lacks an explanation of why this exemption is relevant or necessary.
• Overall, the document contains technical jargon that may not be accessible to all stakeholders, such as 'Balancing Authority Area (BAA)' and 'Default Load Aggregation Point', without further explanation.
• There is no mention of potential impacts on consumers or how rates are expected to change in terms of percentage or cost differences from current rates.