Boulder Canyon Project

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A consultation and comment period begins June 16, 2026 and will end on September 14, 2026. DSW will present a detailed explanation of the proposed FY 2027 base charge and rates at a public information forum on July 16, 2026, from 10 a.m. Mountain Standard Time to no later than 12 p.m. Mountain Standard Time. DSW will also host a public comment forum on August 17, 2026, from 10 a.m. Mountain Standard Time to no later than 12 p.m. Mountain Standard Time, or until the last comment is received. The public information and public comment forums will be held virtually and in person at WAPA's Desert Southwest Regional Office located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Instructions for participating in the forums will be posted on DSW's BCP Rates website at least 14 days prior to the public information and comment forums at www.wapa.gov/about-wapa/regions/dsw/ rates/boulder-canyon-project-rates. DSW will accept written comments at any time during the consultation and comment period.
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Published Document: 2026-12068 (91 FR 36136)
This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.
AGENCY:
Western Area Power Administration, Department of Energy (DOE).
ACTION:
Notice of proposed fiscal year 2027 Boulder Canyon Project base charge and rates for electric service.
SUMMARY:
The Desert Southwest region (DSW) of the Western Area Power Administration (WAPA) proposes the fiscal year (FY) 2027 base charge and rates for Boulder Canyon Project (BCP) electric service under Rate Schedule BCP-F11 to remain at $76.2 million, unchanged from FY 2026. The proposed base charge and rates would go into effect on October 1, 2026, and remain in effect through September 30, 2027. Publication of this
Federal Register
notice will initiate the public process.
DATES:
A consultation and comment period begins June 16, 2026 and will end on September 14, 2026. DSW will present a detailed explanation of the proposed FY 2027 base charge and rates at a public information forum on July 16, 2026, from 10 a.m. Mountain Standard Time to no later than 12 p.m. Mountain Standard Time. DSW will also host a public comment forum on August 17, 2026, from 10 a.m. Mountain Standard Time to no later than 12 p.m. Mountain Standard Time, or until the last comment is received. The public information and public comment forums will be held virtually and in person at WAPA's Desert Southwest Regional Office located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Instructions for participating in the forums will be posted on DSW's BCP Rates website at least 14 days prior to the public information and comment forums at
www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates.
DSW will accept written comments at any time during the consultation and comment period.
Individuals attending the public forums in person who are U.S. citizens must present an official form of government-issued photo identification (ID) at the time of the meeting. Acceptable forms of ID include a REAL ID-compliant driver's license, U.S. passport, U.S. Government ID, or U.S. Military ID. REAL ID-compliant driver's licenses are marked with a star in the upper corner; attendees should verify compliance in advance. Foreign nationals should contact Tina Ramsey, Rates Manager, Desert Southwest Region, Western Area Power Administration, (602)812-2355, or
dswpwrmrk@wapa.gov
in advance of a forum to obtain the necessary form for admittance to the Desert Southwest Regional Office.
ADDRESSES:
Written comments and requests to be informed of Federal Energy Regulatory Commission (FERC) actions concerning the proposed base charge and rates 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
dswpwrmrk@wapa.gov.
DSW will post information concerning the rate process and written comments received to its BCP Rates website at
www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates.
( printed page 36137)
FOR FURTHER INFORMATION CONTACT:
Tina Ramsey, Rates Manager, Desert Southwest Region, Western Area Power Administration, (602) 812-2355, or
dswpwrmrk@wapa.gov.
SUPPLEMENTARY INFORMATION:
Hoover Dam,[1]
authorized by the Boulder Canyon Project Act of 1928, as amended (43 U.S.C. 617,
et seq.), sits on the Colorado River along the Arizona-Nevada border. The Hoover Dam power plant has 19 generating units (including two for plant use) with an installed capacity of 2,078.8 megawatts (4,800 kilowatts for plant use). In collaboration with Reclamation, WAPA markets and delivers hydropower from the Hoover Dam power plant through high-voltage transmission lines and substations to customers in Arizona, Southern California, and Southern Nevada.
The rate-setting methodology for BCP calculates an annual base charge rather than a unit rate for Hoover Dam hydropower. Under the Implementation Agreement, Section 8.5.5, Reclamation determines the amount of project costs to be included in the annual base charge. The base charge recovers an annual revenue requirement that includes projected costs for investment repayment, interest, operations, maintenance, replacements, payments to states, and Hoover Dam visitor services. Non-power revenue projections, such as water sales, Hoover Dam visitor revenue, ancillary services, and late fees help offset these projected costs. Hoover power customers are billed a percentage of the base charge in proportion to their power allocation. Unit rates are calculated for comparative purposes but are not used to determine the charges for service.
On March 31, 2023, FERC approved and confirmed Rate Schedule BCP-F11, under Rate Order No. WAPA-204, on a final basis through September 30, 2027.[2]
Rate Schedule BCP-F11 and the BCP Electric Service Contract require WAPA to determine the annual base charge and rates for the next fiscal year before October 1 of each year. The FY 2026 BCP base charge and rates expire on September 30, 2026.
The proposed FY 2027 base charge for BCP electric service is projected to remain at $76.2 million, unchanged from FY 2026.
Reclamation and
WAPA's FY 2027 budgets are established within the Final FY 2027 Ten-Year Operating Plan (TYOP), which was reviewed and coordinated with Hoover power customers. Following publication of the Final FY 2027 TYOP, Reclamation and WAPA management conducted a comprehensive review of recent expenditures, execution trends and replacement project priorities.
As part of this review, Reclamation reduced its FY 2026 budget, increasing projected carryover into FY 2027, and further reduced its FY 2027 operations and maintenance (O&M) and replacement budgets by adjusting project schedules and deferring planned replacement activities, resulting in a combined reduction of $2.6 million.
Reclamation's FY 2027 budget, after these reductions, is increasing by $2.8 million, from $86.3 million to $89.1million, a 3.2 percent increase over FY 2026. This increase includes a $1.7 million increase in O&M, primarily driven by higher projected costs for salaries, benefits, overhead, and overtime. Additionally, costs for services, materials, and supplies have increased due to greater purchasing needs and inflation. Although several large projects have been deferred, thus reducing replacement costs by $478,000, work continues on many projects, including the Unit Control Modernization Lifecycle Replacement; Heating, Ventilation and Air Conditioning replacement and renovations of the 7th and 8th floors; and the cylinder gate stem replacement. Visitor services expenses are increasing $1.5 million, primarily due to higher projected labor and support costs.
( printed page 36138)
Similarly, WAPA reduced its FY 2026 budget, increasing projected carryover into FY 2027, and reduced its FY 2027 O&M and replacement budgets by deferring the Mead 69-kilovolt breaker and relay replacement project to 2028 or later, resulting in a total reduction of $2.2 million.
WAPA's FY 2027 budget has been refined, decreasing $497,000 from $9.1 million to $8.6 million, a 5.5 percent decrease from FY 2026. This refinement reflects the consistent pattern over the past three fiscal years, in which actual charges have been lower than prior projections.
Non-power revenue projections for Reclamation and WAPA are forecasted to be $52,000 lower in FY 2027, due to reduced estimated revenues from ancillary services. Carryover from FY 2026 to FY 2027 is projected to be $2.7 million, which is $2.3 million more than the projected carryover of $429,000 from FY 2025 into FY 2026. This increase is primarily due to the previously mentioned reductions to the FY 2026 budget.
The composite, energy, and capacity rates remain unchanged from FY 2026. These unit rate calculations use forecasted energy and capacity values from FY 2026, which will be updated based on recent hydrological conditions when determining the final base charge and rates.
WAPA's proposed base charge and rates for FY 2027, which would be effective October 1, 2026, are preliminary and subject to change based on modifications to forecasts before publication of the final base charge and rates.
Legal Authority
WAPA is establishing rates for BCP electric service in accordance with section 302 of the DOE Organization Act (42 U.S.C. 7152). This provision transferred to, and vested in, the Secretary of Energy certain functions of the Secretary of the Interior, along with the power marketing functions of Reclamation. Those functions include actions that specifically apply to the BCP.
WAPA's proposal to calculate the base charge and rates for FY 2027 constitutes a major rate adjustment, as defined by 10 CFR 903.2(d). In accordance with 10 CFR 903.15, 10 CFR 903.16, and 10 CFR 904.7(e), DSW will hold public information and public comment forums for this rate adjustment. DSW will review and consider all timely public comments at the conclusion of the consultation and comment period and adjust the proposal as appropriate.
DOE regulations governing charges for the sale of BCP power, 10 CFR 904.7(e), requires an annual review of the BCP base charge and an “adjust[ment] either upward or downward, when necessary and administratively feasible, to assure sufficient revenues to effect payment of all costs and financial obligations associated with the [p]roject.” This proposal is issued pursuant to Delegation Order No. S1-DEL-RATES-2016, effective November 19, 2016, in which the Secretary of Energy delegated the authority to develop power and transmission rates to WAPA's Administrator. The BCP Electric Service Contract states that for years other than the first year, and each fifth year thereafter, when the rate schedule is approved by the Deputy Secretary of Energy on a provisional basis, and by FERC on a final basis, adjustments to the base charge “shall become effective upon approval by the Deputy Secretary of Energy.” Accordingly, the Deputy Secretary of Energy would approve the final FY 2027 base charge and rates for BCP electric service, as authorized by the BCP Electric Service Contract and DOE's procedures for public participation in rate adjustments set forth at 10 CFR parts 903 and 904.[5]
The FY 2027 base charge will also be filed at FERC for informational purposes only.
Availability of Information
All brochures, studies, comments, letters, memorandums, or other documents that DSW initiates or uses to develop the proposed formula rates for electric service and the base charge and rates are available for inspection and copying at the Desert Southwest Regional Office, located at 615 South 43rd Avenue, Phoenix, Arizona 85009. Many of these documents and supporting information are also available on DSW's BCP Rates website at
www.wapa.gov/about-wapa/regions/dsw/rates/boulder-canyon-project-rates.
Ratemaking Procedure Requirements
Environmental Compliance
WAPA is in the process of determining whether an environmental assessment or an environmental impact statement should be prepared or if this action can be categorically excluded from those requirements.[6]
WAPA has an exemption from centralized regulatory review under Executive Order 12866; 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 June 11, 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 June 12, 2026.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
Footnotes
1.
Hoover Dam was known as Boulder Dam from 1933 to 1947, but was renamed Hoover Dam by an April 30, 1947, joint resolution of Congress.
See
Act of April 30, 1947, H.J. Res. 140, ch. 46, 61 Stat. 56-57.
3.
Unit rate calculations use forecasted energy and capacity values from FY 2026, which will be updated based on recent hydrological conditions when determining the final base charge and rates.
6.
In compliance with the National Environmental Policy Act (NEPA) of 1969, as amended, 42 U.S.C. 4321-4347, DOE NEPA regulations at 10 CFR part 1021, and DOE's NEPA implementing procedures outside the Code of Federal Regulations available at
energy.gov/nepa.