[Federal Register Volume 59, Number 128 (Wednesday, July 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15980]
[[Page Unknown]]
[Federal Register: July 6, 1994]
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DEPARTMENT OF ENERGY
Western Area Power Administration
National Defense Authorization Act Proposed Procedures--Central
Valley Project, California
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of Proposed Procedures to Implement Section 2929 of the
1994 National Defense Authorization Act (National Defense Authorization
Act, Pub. L. No. 103-160, 107 Stat. 1547, 1935 (1993)).
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SUMMARY: The Western Area Power Administration (Western), a Federal
power marketing agency of the Department of Energy (DOE), has developed
proposed procedures to fulfill the requirements of section 2929 of the
National Defense Authorization Act for fiscal year 1994 (National
Defense Authorization Act, Pub. L. No. 103-160, 107 Stat. 1547, 1935
(1993)) (NDA Act). Under the proposed procedures to implement the
requirements of the NDA Act, Western would allocate up to 119.223
megawatts (MW) of Power from the Central Valley Project (CVP), which
represents the amount of CVP Power provided as of November 30, 1993, to
military installations. The NDA Act was signed into public law on
November 30, 1993. Section 2929 of the NDA Act provides that, for a 10-
year period beginning on November 30, 1993, the electric power
allocations provided as of November 30, 1993, by Western from the CVP
to military installations in the State of California which have been
closed or approved for closure pursuant to the Defense Base Closure and
Realignment Act of 1990 (part A, Title XXIX, Pub. L. 101-510; 10 U.S.C.
2687 note) (1990 Act) shall be reserved for sale through Long-Term
Contracts to Preference Entities which agree to use such Power to
promote economic development at a military installation that is closed
or approved for closure pursuant to the 1990 Act. To the extent Power
reserved by the NDA Act is not disposed of through Long-Term Contracts,
it shall be made available on a temporary basis during such 10-year
period to military installations in the State of California through
Short-Term Contracts. By implementing these Procedures, Western will
establish the criteria to allocate the Power made available as a result
of the NDA Act.
The procedures set forth in this Federal Register will explain in
detail how Western intends to implement the NDA Act. Under the proposed
NDA Act Procedures, Western has identified the Power that will be
classified as NDA Act Power and the types of services and contracts
that will be offered. Also set forth under the proposed NDA Act
Procedures are the general eligibility criteria that Western will apply
to all applicants requesting an Allocation of NDA Act Power, and the
procedures to be used by applicants when applying for NDA Act Power,
which include demonstration that certain economic development criteria
are being met. Lastly, Western has set forth the procedures that will
be used in allocating NDA Act Power to eligible applicants, including a
priority list developed by Western for allocating NDA Act Power. In
general, the proposed Procedures provide that the allocation of CVP
Power as of November 30, 1993, at a military installation that is
closed or approved for closure under the 1990 Act will be classified as
NDA Act Power and will be reserved through November 30, 2003, for use
at that military installation. Until the NDA Act Power is fully
utilized at that military installation, the NDA Act Power will be made
available on a temporary basis as described in Section G.1. of the NDA
Act Procedures.
NDA Act Power will be available to the following types of entities,
in the following priority:
1. First for a military load at a Closed Military Installation that
received CVP Power as of November 30, 1993, or to qualified preference
entities promoting economic development at such closed military
installation.
2. Second, on a recallable basis with 3 years' notice, to a
qualified preference entity promoting economic development at a Closed
Military Installation that did not have CVP Power as of November 30,
1993.
3. Third, on a recallable basis with 6 months' notice, to a
military branch which had CVP Power at a Closed Military Installation
as of November 30, 1993, for use within that military branch at a
military installation within the CVP marketing area.
4. Fourth, on a recallable basis with 6 months' notice, to any
military branch for use at a military installation within the CVP
marketing area, or to a negatively affected customer.
DATES: The comment period on the proposed procedures will begin with
the publication of this notice in the Federal Register and will end
August 10, 1994. To be assured consideration, all written comments
should be received by Western by the end of the comment period. Western
will hold a public information forum on the proposed NDA Act Procedures
at 9 a.m. on July 27, 1994. A public comment forum on the proposed NDA
Act Procedures will follow at 1 p.m. on July 27, 1994. The forums will
be held at the Holiday Inn-Holidome, 5321 Date Avenue, Sacramento,
California.
ADDRESSES: All written comments regarding the proposed procedures to
implement the requirements of the NDA Act should be directed to Mr.
James C. Feider, Area Manager, Sacramento Area Office, Western Area
Power Administration, 1825 Bell Street, Suite 105, Sacramento, CA
95825-1097. All documentation developed or retained by Western for the
purpose of developing these procedures will be available for inspection
and copying at the Sacramento Area Office located at the above address.
FOR FURTHER INFORMATION CONTACT: Zola M. Jackson, Assistant Area
Manager for Power Marketing, Sacramento Area Office, Western Area Power
Administration, 1825 Bell Street, Suite 105, Sacramento, CA 95825-1097,
(916) 649-4421.
After all public comments have been thoroughly considered, Western
will prepare and publish the final NDA Act Procedures in the Federal
Register.
SUPPLEMENTARY INFORMATION: On October 5, 1992, Western's Sacramento
Area Office published notice of the Final 1994 Power Marketing Plan,
Central Valley Project, California (57 FR 45782), governing allocations
of 529.946 MW of Power from the CVP. That notice provided the final
allocation of a total of 119.223 MW of Power to certain Department of
Defense (DOD) military installations, as specified in Appendix A
herein. Contracts for such Power were entered into for a term ending
December 31, 2004. The power contracts with the DOD agencies allow for
certain shifts of Power among military installations with approval by
Western. Effective November 30, 1993, such shifts became subject to the
NDA Act.
As of the date of publication of this Federal Register, the
following military installations are scheduled to close pursuant to the
1990 Act:
------------------------------------------------------------------------
Type III
Military installations Long-term withdrawable Total
firm power
------------------------------------------------------------------------
Naval Air Station, Moffett
Field, CA...................... 4.170 2.270 6.440
Naval Station, Treasure Island,
CA............................. 3.020 2.581 5.601
Naval Shipyard, Mare Island,
Vallejo, CA.................... 20.020 2.148 22.168
Totals...................... 27.210 6.999 34.209
------------------------------------------------------------------------
Western is providing notice by this Federal Register that 34.209 MW
of the total possible 119.223 MW (as shown in Appendix A) will be
allocated pursuant to the final NDA Act Procedures on a first-come,
first-served basis beginning 30 days after publication of the final
procedures. As any of the remaining amount of 85.014 MW becomes
available for allocation, pursuant to the NDA Act, Western will provide
notification of the availability of that Power.
Proposed Procedures for the NDA Act
These proposed procedures address how Western plans to allocate up
to 119.223 MW of CVP contract rate of delivery (CROD) provided as of
November 30, 1993, to military installations closed or approved for
closure pursuant to the 1990 Act. When determining who will receive
Allocations of Power, Western will exercise its discretion as provided
by law.
A. Acronyms and Definitions
As used herein, the following acronyms and definitions when used in
initial capitalization, whether singular or plural, shall have the
following meanings:
Allocation: An offer by Western to sell to an applicant a specified
type and quantity of NDA Act Power made available by Western in
accordance with the final NDA Act Procedures.
Allottee: A Preference Entity receiving an Allocation pursuant to
the final NDA Act Procedures.
Closed Military Installation: A military installation in the CVP
Marketing Area which is closed or approved for closure pursuant to the
1990 Act.
Contract Rate of Delivery (CROD): The maximum amount of Power
served by Western on an annual basis under contract between a
contractor and Western, and as it may be reduced or increased in
accordance with applicable law or contractual terms.
Contract 2948A: Contract No. 14-06-200-2948A between the Pacific
Gas and Electric Company and Western, which provides for certain sales,
exchanges, and transmission of electric Power.
CVP: The Central Valley Project, a multipurpose Federal water
development project extending from the Cascade Range in northern
California to the plains along the Kern River south of Bakersfield,
operated by the Bureau of Reclamation.
CVP Marketing Area: The area which generally encompasses the CVP
water basin in northern and central California extending from the
Cascade Range in northern California to the plains along the Kern River
south of Bakersfield.
Final Withdrawal Procedures: Those procedures published in the
Federal Register on March 5, 1986 (51 FR 7702), which specify the
methods to be used by Western for the adjustment of CROD under varying
circumstances.
Long-Term Contract: A contract offered to a Preference Entity who
is promoting an economic development project at either a Priority-One
Base or a Priority-Two Base.
Long-Term Firm NDA Act Power: Firm Power allocated by Western and
subject to the terms and conditions specified in an electric service
contract and the final NDA Act Procedures.
Marketing Plan: The Final 1994 Power Marketing Plan, Central Valley
Project, California (57 FR 45782).
NDA Act Power: The CVP CROD, in the amounts set forth in Appendix
A, which shall be determined to be NDA Act Power by Western based on
the following two conditions: (1) such CVP CROD was under contract to
military installations in the CVP Marketing Area as of November 30,
1993, and (2) the military installations with such CVP CROD are closed
or approved for closure pursuant to the 1990 Act.
NDA Act Power Entitlement: An amount of NDA Act Power equal to the
amount of CVP CROD under contract with a Priority-One base as of
November 30, 1993.
NDA Act Procedures: Those procedures adopted by Western to fulfill
the requirements of the NDA Act.
Negatively Affected Customer: A Preference Entity with a contract
for CVP Power from Western as of November 30, 1993, which is
detrimentally affected as a result of a Closed Military Installation
which is located within the service area of such Preference Entity.
Pacific Gas and Electric Company (PG&E): The investor-owned utility
having a service area in northern and central California and load
control responsibility for the northern and central California area.
Power: Capacity and associated energy.
Preference Entity: An entity that meets the requirements of
Reclamation Law, which provides that preference shall be given to
municipalities and other public corporations or agencies; and also to
cooperatives and other nonprofit organizations financed in whole or in
part by loans made pursuant to the Rural Electrification Act of 1936
(Reclamation Act of 1939, section 9(c), 43 U.S.C. 485h(c)).
Priority-One Base: A Closed Military Installation with CVP CROD as
of November 30, 1993.
Priority-Three Base: A military installation, not scheduled for
closure, which meets the eligibility criteria set forth in the
Marketing Plan.
Priority-Two Base: A Closed Military Installation without a CVP
CROD.
Short-Term Contract: A contract offered on a temporary basis to a
Preference Entity at a Priority-Three Base or to a Negatively Affected
Customer.
Type III Withdrawable NDA Act Power: Firm Power which is
withdrawable to protect the 1,152-MW Load Level before withdrawal of
other types of noninterruptible Power and which is subject to
additional terms and conditions specified in an electric service
contract.
Unutilized NDA Act Power: NDA Act Power which is not allocated
under the final NDA Act Procedures.
Western: Western Area Power Administration, United States
Department of Energy (DOE), a Federal power marketing administration
responsible for marketing the surplus generation from Federal
hydroelectric multipurpose projects pursuant to Reclamation Law and the
DOE Organization Act (91 Stat. 565, 42 U.S.C. Sec. 7101 et seq.).
1,152-MW Load Level: The maximum simultaneous demand that Western
provides, and that PG&E is obligated to support, in accordance with the
terms of Contract 2948A.
B. Reclassification of CVP CROD to NDA Act Power
If at any time through November 30, 2003, an amount of CVP CROD set
forth in Appendix A is determined to be NDA Act Power by Western,
Western will administratively reclassify that amount of CVP CROD to NDA
Act Power. Western shall recall that amount of CVP CROD from the
military branch with a contractual right for that CVP CROD, and Western
shall amend the associated contract to reflect the recall of that
amount of reclassified CROD. At that time, Western shall offer the
military branch the right to shift any remaining CVP CROD among the
bases with CVP CROD at the time of the recall. The NDA Act Power will
be offered to the military branch it was recalled from, under a short-
term contract, subject to Western allocating all or part of such NDA
Act Power first to a qualified applicant with a greater right to such
NDA Act Power pursuant to the final NDA Act Procedures.
C. Types of Service
1. Long-Term Firm NDA Act Power
Western proposes to allocate up to a total of 106.000 MW as Long-
Term Firm NDA Act Power (identified in Appendix A), as such Power
becomes available due to base closures pursuant to the 1990 Act.
2. Type III Withdrawable NDA Act Power
Western proposes to allocate up to a total of 13.223 MW as Type III
Withdrawable NDA Act Power (identified in Appendix A), as such Power
becomes available due to base closures pursuant to the 1990 Act.
D. Types of Contracts
1. Long-Term Contracts
Long-Term Contracts may be offered to Preference Entities promoting
an economic development project at a Closed Military Installation. The
termination date of any such contract shall be no later than December
31, 2004, and such contracts shall be subject to the final NDA Act
Procedures and the Final Withdrawal Procedures.
2. Short-Term Contracts
Short-Term Contracts may be offered to Preference Entities at a
Priority-Three Base or to a Negatively Affected Customer. Western shall
have the right to recall all or any part of the NDA Act Power CROD
under such Short-Term Contract upon giving 6 months' written notice.
The termination date of the contract shall be no later than December
31, 2004, and such contract shall be subject to the final NDA Act
Procedures and the Final Withdrawal Procedures.
E. General Eligibility Criteria
General eligibility criteria apply to applicants seeking an
Allocation of NDA Act Power under the final NDA Act Procedures.
Criteria 1 through 6 shall apply to applicants who are promoting an
economic development project at a Closed Military Installation.
Criteria 4 through 7 shall apply to all other applicants seeking an
Allocation of NDA Act Power.
1. Applicant must have an economic development project plan that
fulfills the following criteria:
(i) Promotes the establishment or expansion of industrial,
commercial, or governmental facilities at the Closed Military
Installation, and
(ii) Helps create or retain jobs in the near term and assists in
the creation of additional long-term employment opportunities. The
economic development project plan must include a specific plan for
hiring the unemployed and underemployed persons from the area near the
Closed Military Installation, and
(iii) Has been approved by the appropriate governing body of the
military installation in which it is, or will be, located and has
community support, which is demonstrated by appropriate local
government agency's written approval of the economic development
project plan, and
(iv) Is supported by public and/or private sector investment and
can present evidence of adequate funding, and
(v) Demonstrates that necessary permits, land acquisitions, or
options on land and right-of-way have been obtained; demonstrates
either that ownership or a long-term lease of the electrical
distribution system has been obtained; and demonstrates that all other
legal requirements of the application process have been satisfied.
2. The economic development project must occur at a Closed Military
Installation.
3. Applicant must provide documentation certifying that the entity
operating the economic development project is eligible to exist and
operate at the Closed Military Installation that is the site of the
economic development project.
4. Applicant must qualify as a Preference Entity.
5. Applicant must be located within the CVP Marketing Area.
6. An applicant's load at each delivery point shall be no less than
an annual peak of 500 kW.
7. Those applicants applying for NDA Act Power to be used at a
Priority-Three Base must exist and operate and be ready, willing, and
able to receive and use, or receive and distribute such NDA Act Power
beginning on the date of application. Those applicants applying for NDA
Act Power as a Negatively Affected Customer must be a Preference Entity
with a contract for CVP Power from Western as of November 30, 1993.
F. Applications for NDA Act Power
Prospective applicants may begin requesting NDA Act Power from
Western at any time later than 30 days after publication of the Federal
Register notice detailing the final NDA Act Procedures, except that
requests for applications will not be considered after November 30,
2003. Requests shall be considered on a first-come, first-served basis.
1. Letter of Interest
(i) To be considered for NDA Act Power, each prospective applicant
must first submit to the Area Manager, Sacramento Area Office, a letter
of interest in receiving NDA Act Power. In the letter of interest, the
prospective applicant must indicate whether it is either a Preference
Entity requesting an allocation of NDA Act Power for use at a Priority-
One, Priority-Two, or Priority-Three Base, or a Negatively Affected
Customer.
(A) For Preference Entities requesting an allocation of NDA Act
Power to be used at a Priority-One, Priority-Two, or Priority-Three
Base, the letter of interest must also indicate the Closed Military
Installation where the NDA Act Power will be used, and the estimated
date when the economic development project plan will be completed.
(B) Negatively Affected Customers must also identify in the letter
of interest, the Closed Military Installation that is located within
its service area and the direct effects of the closing of that military
installation on the Negatively Affected Customer.
(ii) If the letter of interest does not meet the criteria set forth
in F.1.(i) (A) and (B) above, Western will notify the requestor within
60 days of receiving the request.
(iii) If the letter of interest meets the criteria set forth in
F.1.(i) (A) and (B) above, Western will determine whether NDA Act Power
can be made available to meet the request.
(A) If NDA Act Power is available, Western shall mail an applicant
profile data (APD) form to the prospective applicant within 60 days of
receiving the request. A completed application package which contains
all of the information listed on the APD will be required. This ensures
that Western will have a uniform basis upon which to evaluate the
applications.
(B) If NDA Act Power is not available, Western will send a letter
to the prospective applicant within 60 days of receiving the letter of
interest. This letter will state that there is no NDA Act Power
currently available to meet the request. Western will place the
prospective applicant's name on a list of interested parties. At any
time that NDA Act Power becomes available, Western will send a notice
of availability to all interested parties from which Western has
received a letter of interest and mail an APD form to the prospective
applicant.
2. Applicant Profile Data (APD):
The content and format of the APD is outlined below. The
information should be submitted in the sequence listed. The applicant
must provide all requested information or the most reasonable estimates
that are available. The applicant should note any requested information
that is not applicable or not available. The APD must be typed and two
copies submitted by certified mail to the address provided by Western's
Sacramento Area Office. 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. The application
package shall consist of the following:
(i) Applicant.
(A) Applicant's name and address.
(B) Person(s) representing applicant: Please provide the name,
address, title, and telephone number of such person(s).
(C) Type of organization: For example, municipality, rural electric
cooperative, irrigation district, State agency, or Federal agency.
(D) Parent organization.
(E) Names of members.
(F) Applicable law under which organization was established.
(ii) The proposed economic development project plan, including the
name of the military installation on which the economic development
project is proposed.
(iii) Documentation certifying that the entity operating the
economic development project is eligible to exist and operate at the
Closed Military Installation.
(iv) Service Requested:
The amount of electrical service requested.
(v) Loads:
Projected maximum demand (kilowatts (kW)) and energy use
(kilowatthours (kWh)) for each month for a period of 5 calendar years,
beginning on the proposed date that the economic development project
begins operating.
(vi) Transmission:
(A) Points of delivery: Provide the preferred point(s) of delivery
on Western's system or a third-party's system, the required voltage of
service, and the capacity desired at each point of delivery.
(B) Transmission arrangements: Describe the transmission
arrangements necessary to deliver Power to the requested points of
delivery.
(vii) Other Information:
The applicant is welcome to provide any other information pertinent
to receiving an Allocation.
(viii) Signature:
The signature and title of an appropriate official who is able to
attest to the validity of the information submitted and who is
authorized to submit the application is required.
3. Western's Consideration of Applications
(i) When the application package is received by Western, Western
will verify that the general eligibility criteria set forth in Section
E. have 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 application package is determined to be deficient. The
applicant shall have 60 days from the postmark date on Western's
request to provide the information.
(B) If Western determines that the applicant does not meet the
general eligibility criteria, Western will send (within 60 days of
Western's receipt of the application package) a letter explaining why
the applicant did not qualify.
(C) If the applicant has met the general eligibility criteria,
Western will determine the amount of Power to be allocated pursuant to
the general allocation and contract principles set forth in Section G.
Western will send a draft contract to the applicant for review which
identifies the terms and conditions of the offer and the amounts and
types of available Power.
(ii) All NDA Act Power shall be allocated according to the
procedures set forth in the general allocation and contract principles.
(iii) If Western determines that reallocations are necessary to
fulfill the applicant's request, Western will initiate the reallocation
procedures set forth in the general allocation and contract principles.
(iv) In the event that two or more applicants are requesting NDA
Act Power and Western does not have enough NDA Act Power available to
meet those requests, Western shall use its discretion to determine the
amounts of NDA Act Power to be allocated. Western shall use information
contained in the application package, including, if applicable, the
economic development project plan to make its decision.
(v) Western reserves the right to determine the amount of NDA Act
Power to allocate to an applicant, as justified by the applicant in its
application package, including, if applicable, the economic development
project plan. As loads increase at a Priority-One Base, the Allottee
may request and Western may allocate any amount of NDA Act Power up to
the Priority-One Base's NDA Act Power Entitlement to meet such increase
in loads. If necessary, Western may recall NDA Act Power under the
general allocation and contract principles to allocate to the Priority-
One Base.
G. General Allocation and Contract Principles
The general allocation criteria and contract principles established
in the Marketing Plan shall apply to Allocations of NDA Act Power. To
meet the specific requirements of the NDA Act, Western shall also apply
the following allocation criteria to all applicants seeking an
Allocation of NDA Act Power. All Allocations of NDA Act Power shall be
at the sole discretion of Western and shall be determined on a case-by-
case basis.
Allocations of NDA Act Power will be made in amounts solely
determined by Western, subject to the final NDA Act Procedures.
1. Allocation Rights:
Western will allocate NDA Act Power to qualified applicants based
on the following hierarchy:
(i) First, for a military load at a Priority-One Base, or to
qualified Preference Entities promoting economic development at a
Priority-One Base.
Such first right to NDA Act Power will be limited to the NDA Act
Power Entitlement designated for a Priority-One Base.
(ii) Second, to a Preference Entity at a Priority-One Base for
amounts in excess of the NDA Act Power Entitlement for such base, to
serve a military load or to promote an economic development project; or
to a Preference Entity promoting an economic development project at a
Priority-Two Base.
NDA Act Power allocated under this paragraph will be subject to
recall upon a 3-year written notice in order to fulfill an Allocation
to a Priority-One Base which has not fully utilized its NDA Act Power
Entitlement under G.1.(i) above.
(iii) Third, to a military branch which had a CVP CROD at a Closed
Military Installation as of November 30, 1993, for use at a Priority-
Three Base within that military branch within the CVP Marketing Area.
NDA Act Power allocated under this paragraph will be subject to
recall upon a 6-month written notice in order to serve a Priority-One
or Priority-Two Base.
(iv) Fourth, to any military branch for use at a Priority-Three
Base within the CVP Marketing Area, or to a Negatively Affected
Customer.
NDA Act Power allocated under this subparagraph will be subject to
recall upon a 6-month written notice to serve a Priority-One or
Priority-Two Base, or a Priority-Three Base pursuant to G.1.(iii)
above.
2. Allocation of NDA Act Power
Western will use the following procedures to allocate NDA Act Power
to a qualified applicant:
(i) Western will determine whether sufficient Unutilized NDA Act
Power is available to fulfill the applicant's request.
(ii) If sufficient Unutilized NDA Act Power is available to fulfill
the applicant's request, Western shall allocate the amount needed.
(iii) If sufficient Unutilized NDA Act Power is not available to
fulfill the applicant's request, Western shall allocate all Unutilized
NDA Act Power and recall and reallocate NDA Act Power CROD to fulfill
the request by following the reallocation procedures stated in G.3.
below.
(iv) To ensure the most equitable distribution of long-term firm
NDA Act and Type III Withdrawable NDA Act Power, Western proposes that
each Allocation of NDA Act Power shall be determined as follows:
TN06JY94.023
TN06JY94.024
D is defined as Long-Term Firm NDA Act Power available at the time of
the Allocation.
E is defined as Type III Withdrawable NDA Act Power available at the
time of the Allocation.
If using the above procedure would result in an Allocation of Long-
Term Firm NDA Act Power which is less than 500 kW, Western will modify
the procedure to ensure that the Allottee receives a minimum of 500 kW
of Long-Term Firm NDA Act Power.
(v) Allocations will be made only to those applicants who qualify
pursuant to the final NDA Act Procedures. The NDA Act Power must be
used at a Closed Military Installation or a Priority-Three Base, or the
NDA Act Power must be used by a Negatively Affected Customer.
(vi) The Allottee has the right to purchase NDA Act Power only when
a new electric service contract between Western and the Allottee has
been executed and when all conditions precedent in that contract have
been satisfied.
(vii) To consummate any Allocation of NDA Act Power, an electric
service contract shall be executed within 6 months of a contract offer
by Western, unless otherwise agreed in writing by Western.
(viii) Western reserves the right to recall any amount of NDA Act
Power CROD from an Allottee if the NDA Act Power CROD allocated is in
excess of the loads being served by the Allottee.
(ix) Subject to the final NDA Act Procedures, Western's
Administrator has the sole discretion to reallocate any NDA Act Power
CROD that becomes available for marketing if an Allottee has failed to
accept a contract within the period allowed, or if a contract has
terminated, subject to the final NDA Act Procedures.
3. Reallocation Procedures
When Western must recall NDA Act Power CROD in order to meet a
request for NDA Act Power, Western will use the following procedures
and hierarchy:
(i) Allottees receiving Power pursuant to section G.1.(iv) above.
This Power is subject to recall by Western upon a 6-month written
notice.
(ii) Allottees receiving Power pursuant to section G.1.(iii) above.
This Power is subject to recall by Western upon a 6-month written
notice.
(iii) Allottees receiving Power pursuant to section G.1.(ii) above.
This Power is subject to recall by Western upon a 3-year written
notice.
(iv) If Western determines that a partial recall of NDA Act Power
from any of the priority groups identified above is necessary to
fulfill the request, Western shall apply the following formula to
determine the amount of NDA Act Power to be recalled from each
Allottee.
TN06JY94.025
A is defined as each Allottee's contribution to the sum of the NDA Act
Power CROD for all Allottees in the priority group.
B is the sum of all Allottees' NDA Act Power CROD in the priority
group.
C is the requested amount to be recalled from the priority group.
4. Withdrawal Procedures
When Western is required to initiate withdrawals of Type III
Withdrawable NDA Act Power pursuant to the Final Withdrawal Procedures,
Western shall determine the amount to be withdrawn from each Allottee
by using the Final Withdrawal Procedures. Western will then total the
amounts to be withdrawn from each Allottee and will use the following
hierarchy to initiate withdrawals of the Type III Withdrawable NDA Act
Power:
(i) Allottees receiving Power pursuant to section G.1.(iv).
(ii) Allottees receiving Power pursuant to section G.1.(iii).
(iii) Allottees receiving Power pursuant to section G.1.(ii).
(iv) Allottees receiving Power pursuant to section G.1.(i).
(v) If Western determines that a partial withdrawal of Type III
Withdrawable NDA Act Power from any of the above-mentioned groups is
necessary, Western shall apply the following formula to determine the
amount of Type III Withdrawable NDA Act Power to be withdrawn.
TN06JY94.026
A is defined as each Allottee's contribution to the sum of the Type III
Withdrawable NDA Act Power for all the Allottees within the group.
B is the sum of all Allottees' Type III Withdrawable NDA Act Power
within the group.
C is the requested amount of Type III Withdrawable NDA Act Power to be
withdrawn from the group.
5. Contract Terms for the Purpose of NDA Act Power
(i) Long-Term Contracts:
Western proposes that Long-Term Contracts entered into under the
final NDA Act Procedures shall provide for electric service for a
period ending by December 31, 2004, and be subject to the reallocation
procedures set forth in the final NDA Act Procedures. The effective
date of the Long-Term Contract shall be determined by Western at the
time of the contract offer. To abide by the requirements of the NDA
Act, Western shall have the right to recall all or any part of the NDA
Act Power CROD.
(ii) Short-Term Contracts:
Western proposes that Short-Term Contracts entered into under the
final NDA Act Procedures shall provide for electric service during a
temporary period ending by December 31, 2004, subject to the
reallocation procedures set forth in the final NDA Act Procedures. The
effective date of the Short-Term Contract shall be determined by
Western at the time of the contract offer. To abide by the requirements
of the NDA Act, Western shall have the right to recall all or any part
of the NDA Act Power CROD.
(iii) For any applicant requesting NDA Act Power to be used for an
economic development project, the point of delivery for the NDA Act
Power must be at the Closed Military Installation where the NDA Act
Power will be used, unless otherwise agreed to by Western.
(iv) The minimum Long-Term Firm NDA Act Power CROD shall be 500 kW.
(v) Transmission Service:
All transmission arrangements beyond Western's CVP system are the
full responsibility of the Allottee. Western will assist the Allottee
in obtaining third-party transmission arrangements with PG&E for
delivery of Power allocated under the final NDA Act Procedures.
Nonetheless, each Allottee is ultimately responsible for obtaining its
own delivery arrangements. Western reserves the right to terminate a
contract if the Allottee is unable to arrange for the transmission
necessary to receive the CROD within 6 months of the execution of the
contract.
(vi) For those Allottees that receive NDA Act Power to be used at a
Closed Military Installation, the following provisions must be complied
with:
(A) Western reserves the right to terminate a contract if the
Allottee cannot demonstrate that it is using the NDA Act Power for an
economic development project within 1 year of the execution of the
contract, unless otherwise agreed.
(B) The Allottee must provide a report to Western each January 15,
which describes the benefits of the NDA Act Power CROD being passed on
to the organization operating the economic development project. This
report must be provided to Western in such a way that Western can
separately identify the composite energy and capacity costs stated in
mills per kWh of NDA Act Power and non-NDA Act Power. The report must
also show that the economic development project is still in operation.
(C) Western, at its sole discretion, shall have the right to either
withdraw NDA Act Power or terminate its contract with the Allottee upon
30 days' written notice if the Allottee does not comply with
G.5.(vi)(B) above for each year of the contract.
(vii) Standard Provisions:
The contracts entered into as a result of the final NDA Act
Procedures will incorporate Western's standard provisions for power
sales contracts, resale of electric energy, and conservation and
renewable energy in addition to the General Power Contract Provisions.
Western is in the process of developing procedures to require that all
long-term firm customers develop an integrated resource plan consistent
with the Energy Policy Act of 1992. It is anticipated that these
procedures will be effective in late 1994.
Appendix A
[The military installations receiving CVP Power and their respective CVP
CRODs as of November 30, 1993, are listed below]
------------------------------------------------------------------------
Long-term Type III
Military installations firm power withdrawable Total
------------------------------------------------------------------------
Parks Reserve Forces Training
Area, Dublin, CA............... 0.500 ............ 0.500
Defense Distribution Depot, San
Joaquin, CA (Sharpe Facility).. 4.000 ............ 4.000
Defense Distribution Depot, San
Joaquin, CA (Tracy Facility)... 3.800 ............ 3.800
Naval Weapons Station, Concord,
CA............................. 2.170 0.098 2.268
Naval Radio Station, Dixon, CA.. 1.040 ............ 1.040
Naval Air Station, Lemoore, CA.. 16.000 ............ 16.000
Naval Air Station, Moffett
Field, CA...................... 4.170 2.270 6.440
Naval Security Group Activity,
Skaggs Island, CA.............. 0.650 ............ 0.650
Naval Communication Station,
Stockton, CA................... 3.630 ............ 3.630
Naval Station, Treasure Island,
CA............................. 3.020 2.581 5.601
Naval Shipyard, Mare Island,
Vallejo, CA.................... 20.020 2.148 22.168
Beale AFB, Marysville, CA....... 20.507 1.068 21.575
McClellan AFB, Sacramento, CA... 15.094 1.906 17.000
Onizuka AFB, Menlo Park, CA..... ........... 0.500 0.500
Travis AFB, Fairfield, CA....... 11.299 1.352 12.651
Travis Wherry, Fairfield, CA.... 0.100 1.300 1.400
---------------------------------------
Totals...................... 106.00 13.223 119.223
------------------------------------------------------------------------
Regulatory Procedure Requirements
Regulatory Flexibility Analysis
Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 601 et
seq., each agency, when required to publish a proposed rule, is further
required to prepare and make available for public comment an initial
regulatory flexibility analysis to describe the impact of the rule on
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 to 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.
Environmental Compliance
The National Environmental Policy Act of 1969, 42 U.S.C. Sec. 4321
et seq., and implementing regulations issued by the Council on
Environmental Quality, 40 CFR Sec. 1500 et seq., and the Department of
Energy, 10 CFR Sec. 1021, require that the environmental effects of
agency decisions be studied and considered by decision makers. Studies
were made to determine whether there were significant impacts to the
environment as a result of the original allocation of this Power to the
military installations. These studies and analysis are published in the
Revised Environmental Assessment and Finding of No Significant Impact
which were prepared by Western for its Sacramento Area Office 1994
Power Marketing Plan. Western is examining the applicability of the
1994 Revised Environmental Assessment to these Power allocations.
Paperwork Reduction Act Of 1980
The Paperwork Reduction Act of 1980, 44 U.S.C. 3501 et seq.,
requires that certain information collection requirements be approved
by the Office of Management and Budget (OMB) before information is
requested of the public. OMB has issued a final rule on the Paperwork
Burdens on the Public, 48 FR 13666, March 31, 1983.
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 at Washington, DC, June 16, 1994.
William H. Clagett,
Administrator.
[FR Doc. 94-15980 Filed 7-5-94; 8:45 am]
BILLING CODE 6450-01-P
