Transmission and Ancillary Services Rates, Loveland Area Projects, Notice of Proposed Rate Adjustments

Zusammenfassung

The Western Area Power Administration (Western) is proposing transmission service and ancillary service rate adjustments (proposed rates) for the Loveland Area Projects (LAP). This action is necessary because the existing transmission rate (1993) is no longer sufficient to recover annual costs (including interest expense) and capital requirements. The Proposed Rates are scheduled to go into effect April 1, 1998. Western requests approval of a rate methodology for each service. Once approved, the rates will be adjusted on or about October 1 each year by updating the revenue requirement and load data to the most currently available. This Federal Register notice initiates the formal process for the proposed rates. The current firm transmission rate for LAP expires January 31, 1999, but will be superseded by this rate adjustment for new and existing transmission service. Heretofore, there have been no rates for the six ancillary services defined by Federal Energy Regulatory Commission (FERC) Order 888. Please refer to Table 1 for a summary of the Proposed Rates and their methodology.