[Federal Register Volume 61, Number 55 (Wednesday, March 20, 1996)]
[Notices]
[Pages 11389-11390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6709]
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DEPARTMENT OF ENERGY
Notice of Publication of the Insufficiency and Allocations
Exhibit for the Power Sales Contract
AGENCY: Bonneville Power Administration (BPA), DOE,
ACTION: Publication of BPA's Insufficiency and Allocations Exhibit.
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SUMMARY: Section 5(b)(5) of the Northwest Power Act requires BPA to
include a provision in its requirements contracts establishing how BPA
would distribute its power if there is not enough power to meet the
demand. The provisions published below satisfy this statute. Customers
that negotiate a new requirements contract with BPA will have the
choice of referencing the provisions containing the formula below or
incorporating the same language as an exhibit to their contract.
FOR FURTHER INFORMATION CONTACT: Mr. Dale Latham, Power Contracts--
MPSD, Bonneville Power Administration, P.O. Box 3621, Portland, Oregon,
97208-3621, phone number (503) 230-5260, fax number (503) 230-4973.
SUPPLEMENTARY INFORMATION:
I. Purpose of Insufficiency and Allocation Provisions
The purpose of these provisions is to comply with the requirements
of the Northwest Power Act regarding insufficiency by describing the
methodology that BPA will use to establish each Customer's share of
available Requirements Power during a period of insufficiency as
determined by BPA. This methodology will be referenced in new power
sales contracts which BPA is currently negotiating with its preference
utility customers.
II. Provisions
If and when BPA forecasts, on a planning basis, an inability to
acquire resources to meet its Requirements obligation to supply demand
and diurnal energy quantities to its public body and cooperative,
Federal agency, direct-service industrial, and investor-owned utility
customers, BPA will issue a written notice to limit its supply
obligation. BPA's resulting obligation will be no less than an amount
equal to the Federal Base System (FBS) firm peak capability and firm
energy capability.
Notwithstanding any insufficiency notice issued based on planning
criteria specified in the paragraph above, BPA's obligation to supply
demand and diurnal energy amounts in an operating year must equal or
exceed the firm peak capability or firm energy capability of the FBS
before BPA implements an insufficiency restriction.
III. Insufficiency Notices
The insufficiency notice will specify BPA's best estimate of each
month's demand and diurnal energy capability of the FBS, and the
associated allocation to each customer class. Such allocation is to be
based on BPA's estimate of the anticipated loads that each such class
will place on BPA for the month. In making its estimate, BPA will sum:
the then-current Requirements Power purchase amounts for the month for
all customers in the affected class that have established purchase
amounts for Requirements Power; and for all other customers in the
class, BPA's forecast of the customers' Requirements Power load on BPA
for the month.
IV. Notice of Insufficiency Calculation
At least 3 months prior to any month in which BPA has an
insufficiency, BPA will calculate each customer's share of available
Federal resources and make such calculations available to its
customers.
V. Retraction of Insufficiency Notice
When BPA is able to meet its supply obligations based on the amount
of Requirements Power that the customers would purchase absent the
restriction, BPA may cancel the restriction.
VI. Formula Allocations
The following definitions are used in the allocation formulas:
Class 1 = public body, cooperative class; Class 2=Federal agency class;
Class 3=direct-service industry class; Class 4=investor-owned utility
class.
VII. Allocation Formula Variables Defined
The following variables are used in the allocations formulas: S1-
Requirements Service for a Class 1 customer; S2-Requirements Service
for a Class 2 customer; S3-Requirements Service for a Class 3 customer;
S4-Requirements Service for a Class 4 customer; SM-A Montana customer's
Requirements Service purchases; M-Montana Reservation Resource amount
as determined by BPA; RBPA-Total FBS and non-FBS Resources available to
BPA to serve Requirements Service loads. Includes RT: R1-Resources sold
to BPA by a Class 1 customer plus in-lieu power sold by BPA to a Class
1 customer; R2-Resources sold to BPA by a Class 2 customer; R3-
Resources sold to BPA by a Class 3 customer; R4-Resources sold to BPA
by a Class 4 customer plus in-lieu power sold by BPA to a Class 4
customer; RT-Total of R1, R2, R3 and R4.
VIII. Firm Energy and Peak Demand Allocation Formulas
BPA will use the following formulas to determine each Customer's
monthly right to power during a period of insufficiency. BPA will
calculate the Customer's monthly right to demand and energy during each
of BPA's established diurnal energy periods. The Customer's right to
purchase Requirements Power from BPA is limited to the calculated
quantities.
Formula 1: If RBPA -
(R3+R4)(S1+S2), all
Class 1 and Class 2 Customers receive allocations equal to their
respective Requirements Power purchases. Go to Formula 2.
Otherwise: If M/SM>(RBPA-RT)/(S1+S2)
then: Each Montana Customer's allocation=SM/SM * M. Other
Class 1 and Class 2 Customer's allocation is as follows: Allocate R1 to
eligible Class 1 Customers and R2 to eligible Class 2 Customers.
Allocate excess R1 proportionally to remaining Class 1 Requirements
Power purchases and excess R2 proportionally to remaining Class 2
Requirements Power purchases. Iterate until all R1 and R2 is used. Use
S1/(S1+S2-SM) * (RBPA-RT-M) for
allocating to remaining Class 1 Requirements Power purchases. Use S2/
(S1+S2-SM) * (RBPA-RT-M) for
allocating to remaining Class 2 Requirements Power purchases. Class 3
and Class 4 customer's allocation is as follows: Allocate R3 to
eligible Class 3 Customers and R4 to eligible Class 4 Customers.
Allocate excess R3 proportionally to remaining Class 3 Requirements
Power purchases and excess R4 proportionally to remaining Class 4
Requirements Power purchases. Iterate until all R3 and R4 is used.
Finished calculation for 1 month. Return to Formula 1 to proceed with
monthly calculation.
If M/SM<(rbpa-rt)>S1+S2) then: All
Class 1 and Class 2 customers'
[[Page 11390]]
allocation is as follows: Allocate R1 to eligible Class 1 customers and
R2 to eligible Class 2 customers. Allocate excess R1 proportionally to
remaining Class 1 Requirements Power purchases and excess R2
proportionally to remaining Class 2 Requirements Power purchases.
Iterate until all R1 and R2 is used. Use S1/(S1+S2) *
(RBPA-RT) for allocating to remaining Class 1 Requirements
Power purchases. Use S2/(S1+S2) * (RBPA-RT)
for allocating to remaining Class 2 Requirements Power purchases.
Follow steps for Class 3 and Class 4 in sections 2(d)(3)(C) and
2(d)(3)(D).
Formula 2: If
RBPA-(S1+S2+R4)S3, all
Class 3 customers receive an allocation equal to their respective
Requirements Power purchases. Go to Formula 3. Otherwise: Class 3
customers' allocation is as follows: S3/S3 *
(RBPA-S1-S2-R3-R4)+R3. Allocate
excess R3 proportionally to remaining Class 3 Requirements Power
purchases. Iterate until all R3 is used. Class 4 customers' allocation
is as follows: Allocate R4 to eligible Class 4 customers. Allocate
excess R4 proportionally to remaining Class 4 Requirements Power
purchases. Iterate until all R4 is used. Finished calculation for 1
month. Return to Formula 1 to proceed with monthly calculation.
Formula 3: If
RBPA-(S1+S2+S3)S4, there
is no insufficiency in this month. All customers receive an allocation
equal to their Requirements Power purchases. Finished calculation for 1
month. Return to Formula 1 to proceed with monthly calculation.
Otherwise: Class 4 customer's allocation is as follows: S4/S4
* (RBPA-S1-S2-S3-R4)+R4. Allocate
excess R4 proportionally to remaining Class 4 loads. Iterate until all
R4 is used. Finished calculation for 1 month. Return to Formula 1 to
proceed with monthly calculation.
These provisions will be revised only if BPA secures the agreement
of all affected customers.
Issued in Portland, Oregon on February 27, 1996.
Randall W. Hardy,
Administrator and Chief Executive Officer.
[FR Doc. 96-6709 Filed 3-19-96; 8:45 am]
BILLING CODE 6450-01-P
