[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Notices]
[Pages 8709-8710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4693]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Proposal To Extend Electric Power Resource Commitments to
Contractors of the Salt Lake City Area Integrated Projects by
Application of the Energy Planning and Management Program Power
Marketing Initiative
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposal.
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SUMMARY: In 1995, the Department of Energy, Western Area Power
Administration (Western) completed an environmental impact statement
(EIS), DOE/EIS-0182, on its Energy Planning and Management Program
(Program). Western published a Final Rule adopting the Program on
October 20, 1995 (10 CFR Part 905). The Program has two major
components: a requirement that all long-term, firm electrical power
contractors prepare integrated resource plans (IRP) or small customer
plans; and a Power Marketing Initiative (PMI) in which these
contractors will receive an extension of a major portion of the
resources available at the time the contracts expire. The Record of
Decision (ROD) stated that Western would implement the requirements for
customers to prepare IRPs and small customer plans immediately, but
that application of the PMI would be done on a project-specific basis.
Western now proposes to apply the PMI to the long-term, firm power
contracts of the Salt Lake City Area Integrated Projects (SLCA/IP).
DATES: Western will accept written comments on or before May 27, 1997.
The times and locations of four information/comment meetings will be
announced in a subsequent notice in the Federal Register.
ADDRESSES: Comments may be submitted to: Mr. David Sabo, Western Area
Power Administration, Colorado River Storage Project Manager, P.O. Box
11606, Salt Lake City, UT 84147-0606.
SUPPLEMENTARY INFORMATION: Western first proposed the Program on April
19, 1991 (56 FR 16093). The goals of the Program were to encourage
efficient energy use by Western's long-term, firm power customers by
requiring integrated resource planning and to extend Western's firm
power resource commitments as contracts expire. Western published its
notice of intent to prepare an EIS on the Program in the Federal
Register on May 1, 1991 (56 FR 19995).
President Bush signed the Energy Policy Act (EPAct) into law on
October 24, 1992. Section 114 of EPAct amended Title II of the Hoover
Power Plant Act of 1984 to require the preparation of IRPs by Western's
customers. Western adjusted its proposed Program to fully incorporate
the provisions of this law.
A notice of proposed rulemaking for the Program was published in
the Federal Register on August 9, 1994 (59 FR 40543), with seven public
information/comment forums held at various locations during September
1994. In the August 9 Notice, Western estimated that initially 98
percent of SLCA/IP resources available at the end of the term of
existing contracts would be extended.
[[Page 8710]]
In the Final rule, Western stated that application of the PMI
including length of resource extension and the amount of resources
extended would be determined through a project specific process later.
Under the PMI, existing firm power sales commitments were to be
extended for 20 years beyond the existing termination date. A
commitment of not less than 96 percent of the hydroelectric power
resource determined to be available to the customers was to be
extended, and a power resource pool of up to 4 percent of the power
from these customers would be created.
The resource pool would be used for allocations to new customers
and contingencies. The rule stated that a more precise decision on how
resource pools would be used would be made by Western later. Western's
rule further stated that the percentage of existing commitments
extended for the other projects would be determined later. It also
stated that the application of the PMI for the ``Salt Lake City Area
Integrated Projects Marketing Plan would be determined following
completion of the separate National Environmental Policy Act of 1969
(NEPA) process currently under way.'' That NEPA process is the SLCA/IP
Electric Power Marketing EIS. The final EIS was published in January
1996, and the ROD was published in October 1996.
Western proposes to apply the PMI, (10 C.F.R. 905.31 through
905.37), to the SLCA/IP. This includes, among other things, a proposal
to extend 96 percent of the SLCA/IP contractors' entitlement of long-
term, firm Federal resources as of September 30, 2004, for an
additional 20 years. Western proposes that an initial resource pool of
up to 4 percent of available Federal resources be created for new
customers to encourage customer development of new technologies for
conservation or renewable resources and for contingencies. Western's
analysis shows that a resource pool of 4 percent of available resources
should be adequate to provide potential new customers with a fair share
entitlement of Federal resources. Fair share amounts of capacity and
energy will be offered to new customers meeting the requirements
established in the Post-89 Marketing Criteria and to qualifying Indian
tribes within the SLCA/IP marketing area. Indian tribes need not have
utility status to qualify for an allocation. In addition to the
adjustment in long-term firm resources in 2004, resource commitments
may be reduced on October 1, 2009, and October 1, 2014, upon 2 years
written notification. These resource adjustments would provide an
additional amount of power for the same purposes as the 2004
adjustment.
Adjustments may also be made in resource allocations at any time to
reflect changes in dam operations and/or water conditions upon 5 years
notification.
Western is seeking comments on the appropriateness of the length of
extension offered and on what percentage of the SLCA/IP resource should
be extended to the SLCA/IP long-term, firm power customers. In addition
Western requests comments on the uses that should be made of the
electrical power resource pool that will be created. Following the
public comment period, Western will analyze the comments received and
publish its policy regarding extension of resource commitments in the
Federal Register.
NEPA COMPLIANCE: Western will comply with NEPA through preparation of
appropriate NEPA documentation of the impacts of the proposal.
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 the Office of
Management and Budget (OMB) is required.
Issued in Washington, DC on February 19, 1997.
Joel K. Bladow,
Assistant Administrator.
[FR Doc. 97-4693 Filed 2-25-97; 8:45 am]
BILLING CODE 6450-01-P
