[Federal Register Volume 61, Number 19 (Monday, January 29, 1996)]
[Notices]
[Pages 2817-2820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1394]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Proposed Power Allocation Procedures and Call for Applications,
Post-2000 Resource Pool--Pick-Sloan Missouri Basin Program, Eastern
Division
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Allocation Procedures and Call for
Applications.
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SUMMARY: Western Area Power Administration (Western), a Federal power
marketing agency of the Department of Energy, is publishing this notice
of proposed procedures to implement Subpart C--Power Marketing
Initiative of the Energy Planning and Management Program Final Rule, 10
CFR part 905, published at 60 FR 54151. The Energy Planning and
Management Program (Program), which was developed in part to implement
section 114 of the Energy Policy Act of 1992, became effective on
November 20, 1995. Subpart C of the Program provides for the
establishment of project-specific resource pools and the allocation of
power from these pools to new preference customers. These proposed
procedures, in conjunction with the Eastern Division, Pick-Sloan
Missouri Basin Program Final Post-1985 Marketing Plan (Post-1985
Marketing Plan) (45 FR 71860) will establish the framework for
allocating power from the resource pool to be established for the Pick-
Sloan Missouri Basin Program--Eastern Division (PSMBP-ED).
DATES: The comment period on the proposed procedures will begin with
the publication of this notice in the Federal Register and will end
March 4, 1996. To be assured of consideration, all written comments
must be received by the end of the comment period. Western will hold
public information forums and public comment forums on the proposed
procedures on February 14,
[[Page 2818]]
15, and 16, 1996 at the following locations and times:
February 14, 1996, Hilton Sioux Hotel, 707 Fourth St., Sioux City,
Iowa, Information forum--1 p.m. (not to exceed 2 hours), Comment
forum--immediately following the information forum
February 15, 1996, Best Western Doublewood Inn, 3333 13th Avenue South,
Fargo, North Dakota, Information forum--1 p.m. (not to exceed 2 hours),
Comment forum--immediately following the information forum
February 16, 1996, Holiday Inn, 1902 LaCross Street, Rapid City, South
Dakota, Information forum--9 a.m. (not to exceed 2 hours), Comment
forum--immediately following the information forum
ADDRESSES: All written comments regarding these proposed procedures
should be directed to the following address: Mr. Joel K. Bladow, Acting
Regional Manager, Upper Great Plains Customer Service Region, Western
Area Power Administration, P.O. Box 35800, Billings, MT 59107-5800.
All documentation developed or retained by Western for the purpose
of developing these procedures will be available for inspection and
copying at the Upper Great Plains Customer Service Region located at
the above address.
FOR FURTHER INFORMATION CONTACT: Robert J. Harris, Assistant Area
Manager for Engineering and Marketing, Upper Great Plains Customer
Service Region, Western Area Power Administration, P.O. Box 35800,
Billings, MT 59107-5800, (406) 247-7394.
After all public comments have been thoroughly considered, Western
will prepare and publish the Final Post 2000 Resource Pool Allocation
Procedures in the Federal Register.
SUPPLEMENTARY INFORMATION: On October 20, 1995, Western published the
Final Rule for the Program. The rule became effective on November 20,
1995. The goal of the Program is to require planning and efficient
electric energy use by Western's long-term firm power customers and to
extend Western's firm power resource commitments. One aspect of the
Program is the establishment of project-specific power resource pools
when existing resource commitments expire and the allocation of power
from these pools to new preference customers.
Existing resource commitments for the PSMBP-ED expire on December
31, 2000. In accordance with the Program, 96 percent (96%) of the firm
power resources determined to be available at that time will be
extended to existing customers. The remaining 4 percent (4%) will be
placed in a resource pool from which power allocations to new customers
will be made in accordance with these procedures and the Post-1985
Marketing Plan.
The Proposed Post-2000 Resource Pool Allocation Procedures
These proposed procedures for the PSMBP-ED address (1) eligibility
criteria; (2) how Western plans to allocate the pool resources to new
customers as provided for in the Program; and (3) the terms and
conditions under which Western will sell the power allocated.
I. Amount of Pool Resources
Western proposes to allocate 4 percent (4%) of the PSMBP-ED long-
term firm hydroelectric resource available as of January 1, 2001 as
firm power (firm power) as provided for by the Program. Firm power
means capacity and associated energy allocated by Western and subject
to the terms and conditions specified in the Western electric service
contract.
II. General Eligibility Criteria
Western proposes to apply the following general eligibility
criteria to applicants seeking an allocation of firm power under the
proposed Post-2000 Resource Pool Allocation Procedures.
A. Qualified utility applicants and qualified Native American
applicants must be preference entities in accordance with section 9(c)
of the Reclamation Project Act of 1939, 43 U.S.C. 485h(c), as amended
and supplemented.
B. Qualified utility applicants and qualified Native American
applicants must be located within the currently established PSMBP-ED
marketing area.
C. Qualified utility applicants must not be currently receiving
benefits, directly or indirectly, from a current PSMBP-ED firm power
allocation. Qualified Native American applicants are not subject to
this requirement.
D. Qualified utility applicants must be able to use the firm power
directly or be able to sell it directly to retail customers.
E. Qualified utility applicants must have utility status by
December 31, 1996. Utility status means that the entity has
responsibility to meet load growth, has a distribution system, and is
ready, willing, and able to purchase Federal power from Western on a
wholesale basis.
F. Qualified Native American applicants must be a Native American
tribe as defined in the Indian Self Determination Act of 1975, 25
U.S.C. 450b, as amended.
III. General Allocation Criteria
Western proposes to apply the following general allocation criteria
to applicants seeking an allocation of firm power under the proposed
Post 2000 Resource Pool Allocation Procedures.
A. Allocations of firm power will be made in amounts as determined
solely by Western in exercise of its discretion under Reclamation Law.
B. An allottee will have the right to purchase such firm power only
upon the execution of an electric service contract between Western and
the allottee, and satisfaction of all conditions in that contract.
C. Firm power allocated under these procedures will be available
only to new preference customers in the existing PSMBP--ED marketing
area. This marketing area includes Montana (east of the Continental
Divide), North Dakota, South Dakota, and specific areas in western
Iowa, western Minnesota and eastern Nebraska. The marketing area of the
PSMBP--ED is Montana east of the Continental Divide, all of North and
South Dakota, Nebraska east of the 101 deg. meridian, Iowa west of the
94\1/2\ deg. meridian, and Minnesota west of a line on the 94\1/2\ deg.
meridian from the southern boundary of the state to the 46 deg.
parallel and thence northwesterly to the northern boundary of the state
at the 96\1/2\ deg. meridian.
D. Allocations made to Native American tribes will be based on
estimated load developed by the Native American Tribes. Inconsistent
estimates will be adjusted by Western during the allocation process.
Western is willing to consult with the Tribes to develop load
estimating methods assuring consistent Native American load estimates
across the region.
E. Allocations made to utility customers will be based on the loads
experienced in the 1994 summer season and the 1994-95 winter season.
Western will use Mid-Continent Area Power Pool data trends to adjust
this data in order to apply Post-1985 Marketing Plan criteria.
F. Energy provided with firm power will be based upon the
customer's monthly system load factor.
G. Any electric service contract offered to a new customer shall be
executed by the customer within six (6) months of a contract offer by
Western, unless otherwise agreed to in writing by Western.
H. The initial resource pool will be dissolved subsequent to the
closing date for executing firm power contracts. Firm
[[Page 2819]]
power not under contract will be used as determined by Western.
I. The minimum allocation shall be 100 kilowatts (kW).
J. The maximum allocation for utility customers shall be 5,000
kilowatts (kW).
K. Contract rates of delivery shall be subject to adjustment in the
future as provided for in the Program.
L. If unanticipated obstacles to the delivery of hydropower
benefits to Native American tribes arise, Western retains the right to
provide the economic benefits of its resources directly to the tribes.
IV. General Contract Principles
Western proposes to apply the following general contract principles
to all applicants receiving an allocation of firm power under the
proposed Post 2000 Resource Pool Allocation Procedures.
A. Western shall reserve the right to reduce a customer's summer
season contract rate of delivery by up to 5 percent (5.0%) for new
project pumping requirements, by giving a minimum of five (5) years'
written notice in advance of such action.
B. Western, at its discretion and sole determination, shall reserve
the right to adjust the contract rate of delivery on five (5) years'
notice in response to changes in hydrology and river operations. Any
such adjustments shall only take place after public process.
C. Western shall assist the allottee in obtaining third-party
transmission arrangements for delivery of firm power allocated under
these proposed procedures to new customers; nonetheless, each allottee
is ultimately responsible for obtaining its own delivery arrangements.
D. Contracts entered into under the proposed Post 2000 Resource
Pool Allocation Procedures shall provide for Western to furnish firm
electric service effective from January 1, 2001, through December 31,
2020.
E. The contracts entered into as a result of the proposed
procedures shall incorporate Western's standard provisions for power
sales contracts, integrated resource planning, and the general power
contract provisions.
V. Applications for Firm Power
Western requests all applications be submitted in writing to the
Regional Manager, Upper Great Plains Customer Service Region, for an
allocation of firm power under these procedures. Applications must be
made only via certified, return receipt requested U.S. mail. No other
means of submitting applications will be accepted. The applications
must be received in Western's Upper Great Plains Customer Service
Region at P.O. Box 35800, Billings, Montana 59107-5800, no later than
the close of business on March 4, 1996.
A. Letter of Interest and Applicant Profile Data (APD)
Each applicant must submit to the Regional Manager, Upper Great
Plains Customer Service Region, a Letter of Interest in receiving firm
power and the appropriate APD as outlined below.
B. Applicant Profile Data
The content and format of the APD are outlined below. The
information should be submitted in the sequence listed. The applicant
must provide all requested information or the most reasonable available
estimate. The applicant should note any requested information that is
not applicable. The APD must be typed and two copies submitted by
certified or return receipt requested mail to Western's Upper Great
Plains Customer Service Region by the date specified above. The burden
of ensuring consistency of the content of both copies rests with the
applicant. Western is not responsible for errors in data or missing
pages. All items of information in the APD should be answered as if
prepared by the organization seeking the allocation.
1. The APD shall consist of the following:
a. Applicant:
i. Applicant's name and address.
ii. Person(s) representing applicant: Please provide the name,
address, title, and telephone number of such person(s).
iii. Type of organization: For example, municipality, rural
electric cooperative, Native American tribe, state agency, Federal
agency. Please provide a brief description of the organization that
will interact with Western on contract and billing matters and whether
the organization owns and operates its own electric utility system.
iv. Applicable law under which organization was established.
b. Loads:
i. Utility Customers:
(1) Number and type of customers served; i.e., residential,
commercial, industry, military base, agricultural.
(2) The actual monthly maximum demand in (kilowatts) and energy use
(in kilowatt-hours) experienced in the 1994 summer season (May 1994
through October 1994) and the 1994-95 winter season (November 1994
through April 1995).
ii. Native American Tribes:
(1) Estimated maximum demand in kilowatts with a description of the
method and basis for this estimated demand.
c. Resources:
i. A list of current power supplies, including the applicant's own
generation and purchases from others. For each supply, provide capacity
and location.
ii. Status of power supply contracts, including a contract
termination date. Indicate whether power supply is on a firm basis or
some other type of arrangement.
d. Transmission:
i. Points of delivery: Provide the preferred point(s) of delivery
on Western's system or a third-party's system and the required service
voltage.
ii. Transmission arrangements: Describe the transmission
arrangements necessary to deliver firm power to the requested points of
delivery.
e. Other Information:
The applicant may provide any other information pertinent to
receiving an allocation.
f. Signature:
The signature and title of an appropriate official who is able to
attest to the validity of the APD and who is authorized to submit the
request for allocation.
C. Western's Consideration of Applications
1. When the APD is received by Western, Western will verify that
the general eligibility criteria set forth in section II has been met,
and that all items requested in the APD have been provided.
a. Western will request in writing additional information from any
applicant whose APD is determined to be deficient. The applicant shall
have 15 days from the date on Western's letter of request to provide
the information.
b. If Western determines that the applicant does not meet the
general eligibility criteria, Western will send a letter explaining why
the applicant did not qualify.
c. If the applicant has met the eligibility criteria, Western will
determine the amount of firm power to be allocated pursuant to the
general allocation criteria set forth in section III. Western will send
a draft contract to the applicant for review which identifies the terms
and conditions of the offer and the amount of firm power allocated to
the applicant.
2. All firm power shall be allocated according to the procedures in
the general allocation criteria set forth in section III.
3. Western reserves the right to determine the amount of firm power
to allocate to an applicant, as justified by the applicant in its APD.
[[Page 2820]]
VI. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires
Federal agencies to perform a regulatory flexibility analysis if a
proposed regulation is likely to have a significant economic impact on
a substantial number of small entities. Western has determined that (1)
this rulemaking relates to services offered by Western, and, therefore,
is not a rule within the purview of the Act, and (2) the impacts of an
allocation from Western would not cause an adverse economic impact on a
substantial number of such entities. The requirements of this Act can
be waived if the head of the agency certifies that the rule will not,
if promulgated, have a significant economic impact on a substantial
number of small entities. By his execution of this Federal Register
notice, Western's Administrator certifies that no significant economic
impact on a substantial number of small entities will occur.
VII. Review Under the Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1980, 44 U.S.C.
3501-3520, Western has received approval from the Office of Management
and Budget (OMB) for the collection of customer information in this
rule, under control number 1910-1200.
VIII. Review Under the National Environmental Policy Act
Western has completed an environmental impact statement on the
Program, pursuant to the National Environmental Policy Act of 1969
(NEPA). The Record of Decision was published in the Federal Register on
October 12, 1995 (60 FR 53181). Western's NEPA review will assure all
environmental effects related to these procedures have been analyzed.
IX. Determination Under Executive Order 12866
DOE has determined that this is not a significant regulatory action
because it does not meet the criteria of Executive Order 12866, 58 FR
51735. Western has an exemption from centralized regulatory review
under Executive Order 12866; accordingly, no clearance of this notice
by OMB is required.
Issued in Golden, Colorado, January 19, 1996.
J.M. Shafer,
Administrator.
[FR Doc. 96-1394 Filed 1-26-96; 8:45 am]
BILLING CODE 6450-01-P
