WAPA Proposed Formula Rate Extension Notice

Regs.gov: Western Area Power Administration

Detected March 15th, 2026

Summary

The Western Area Power Administration (WAPA) has issued a notice proposing to extend its existing formula rates for balancing authority area and transmission provider services. The proposed extension, without changes, would run through September 30, 2031, with a comment period open from January 26, 2026, to March 27, 2026.

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What changed

The Western Area Power Administration (WAPA) is proposing to extend its current formula rates for balancing authority area and transmission provider services, including rate schedules for scheduling, system control, dispatch, reactive supply, voltage control, regulation, frequency response, reserves, energy imbalance, generator imbalance, transmission losses, and unreserved use penalties. These rates, which currently expire on September 30, 2026, are proposed to be extended through September 30, 2031, without any modifications. This action is being taken to ensure continued revenue sufficiency for cost recovery and investment repayment.

Regulated entities that utilize these services should review the proposed extension and submit any comments by March 27, 2026. While WAPA has determined that public information or comment forums are not necessary, they are initiating this consultation period to gather feedback. Failure to submit timely comments may result in the proposed extension being approved as is. No specific penalties for non-compliance with the extension itself are mentioned, but continued use of services implies adherence to the approved rates.

What to do next

Review proposed formula rate extension for balancing authority area and transmission provider services.
Submit written comments by March 27, 2026.

Source document (simplified)

Content

ACTION:

Notice of proposed extension of formula rates for balancing authority area and transmission provider services.

SUMMARY:

The Desert Southwest Region (DSW) of the Western Area Power Administration (WAPA) proposes extending, without any changes,
the existing balancing authority area and transmission provider services formula rates for Western Area Lower Colorado Balancing
Authority (WALC) through September 30, 2031. The existing formula rates under Rate Schedules DSW-SD4 (Scheduling, System Control,
and Dispatch), DSW-RS4 (Reactive Supply and Voltage Control), DSW-FR4 (Regulation and Frequency Response), DSW-SPR4 (Spinning
Reserve), DSW-SUR4 (Supplemental Reserves), DSW-EI4 (Energy Imbalance), DSW-GI2 (Generator Imbalance), DSW-TL1 (Transmission
Losses), DSW-UUI (Unreserved Use Penalties), DSW-EIM1T (Administrative Service), DSW-EIM4T (Energy Imbalance Service), and
DSW-EIM9T (Generator Imbalance Service) expire on September 30, 2026.

DATES:

A consultation and comment period will begin January 26, 2026 and end March 27, 2026.

ADDRESSES:

Written comments and requests to be informed of Federal Energy Regulatory Commission (FERC) actions concerning the proposed
extension submitted by WAPA to FERC for approval should be sent to: Scott R. Lund, Regional Manager, Desert Southwest Region,
Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 85005-6457, or email: dswpwrmrk@wapa.gov. DSW will post information about the proposed formula rate extensions and written comments received to its website at: www.wapa.gov/about-wapa/regions/dsw/rates.

FOR FURTHER INFORMATION CONTACT:

Tina Ramsey, Rates Manager, Desert Southwest Region, Western Area Power Administration, (602) 812-2355, or email: dswpwrmrk@wapa.gov.

SUPPLEMENTARY INFORMATION:

On January 12, 2017, FERC confirmed and approved ancillary service Rate Schedules DSW-SD4, DSW-RS4, DSW-FR4, DSW-SPR4, DSW-SUR4,
DSW-EI4, and DSW-GI2, transmission losses Rate Schedule DSW-TL1, and unreserved use penalty Rate Schedule DSW-UU1 under Rate
Order No. WAPA-175 for a 5-year period through September 30, 2021. (1) On October 25, 2022, FERC confirmed and approved an extension of these formula rates, under Rate Order No. WAPA-200, for a
5-year period through September 30, 2026. (2) On September 12, 2023, FERC confirmed and approved EIM Rate Schedules DSW-EIM1T, DSW-EIM4T, and DSW-EIM9T under Rate Order
No. WAPA-208 for a 3-year period through September 30, 2026. (3) In accordance with 10 CFR 903.23(a), (4) DSW is proposing to extend the existing formula rates under Rate Schedule DSW-SD4, DSW-RS4, DSW-FR4, DSW-SPR4, DSW-SUR4, DSW-EI4,
DSW-GI2, DSW-TL1, DSW-UU1, DSW-EIM1T, DSW-EIM4T, and DSW-EIM9T for the period of October 1, 2026, through September 30, 2031.
These existing formula rates are viewable on DSW's website at: www.wapa.gov/about-wapa/regions/dsw/rates. The existing formula rates provide sufficient revenue to pay all annual costs, including interest

  expense, and repay investment within the allowable period consistent with the cost recovery criteria set forth in Department
  of Energy (DOE) Order RA 6120.2.

In accordance with 10 CFR 903.23(a), DSW has determined that it is not necessary to hold public information or public comment
forums for this rate action but is initiating a consultation and comment period to give the public an opportunity to comment
on the proposed extension. DSW will review and consider all timely public comments at the conclusion of the consultation and
comment period and adjust the proposal as appropriate.

Legal Authority

By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 2016, the Secretary of Energy delegated: (1) the authority
to develop power and transmission rates to the WAPA Administrator; (2) the authority to confirm, approve, and place such rates
into effect on an interim basis to the Deputy Secretary of Energy; and (3) the authority to confirm, approve, and place into
effect on a final basis, or to remand or disapprove such rates, to FERC. By Delegation Order No. S1-DEL-S3-2024, effective
August 30, 2024, the Secretary of Energy also delegated the authority to confirm, approve, and place such rates into effect
on an interim basis to the Under Secretary for Infrastructure. By Redelegation Order No. S3-DEL-WAPA1-2023, effective April
10, 2023, the Under Secretary for Infrastructure further redelegated the authority to confirm, approve, and place such rates
into effect on an interim basis to WAPA's Administrator.

Ratemaking Procedure Requirements

Environmental Compliance

WAPA determined that this action fits within the following categorical exclusion listed in appendix B to 10 CFR part 1021
and Appendix B of DOE's National Environmental Policy Act (NEPA) Implementing Procedures published on June 30, 2025: B4.3,
Electric power marketing rate changes. (5) Categorically excluded projects and activities do not require preparation of either an environmental impact statement or an
environmental assessment. A copy of the categorical exclusion determination is available on DSW's website at www.wapa.gov/about-wapa/regions/dsw/environment/dsw-cx/. Look for file titled, “Rate Order WAPA-222.”

Determination Under Executive Order 12866

WAPA has an exemption from centralized regulatory review under Executive Order 12866 as amended by Executive Order 14215;
accordingly, no clearance of this notice by the Office of Management and Budget is required.

Signing Authority

This document of the Department of Energy was signed on January 21, 2026, by Tracey A. LeBeau, Administrator, Western Area
Power Administration, pursuant to delegated authority from the Secretary of Energy. That document, with the original signature
and date, is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the
Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document
in electronic format for publication, as an official document of the Department of Energy. This administrative process in
no way alters the legal effect of this document upon publication in the
Federal Register
.

Signed in Washington, DC on January 21, 2026. Jennifer Hartzell, Alternate Federal Register Liaison Officer, U.S. Department of Energy. [FR Doc. 2026-01330 Filed 1-23-26; 8:45 am] BILLING CODE 6450-01-P