96-20078. Final Power Allocation Procedures of the Post-2000 Resource PoolPick-Sloan Missouri Basin Program, Eastern Division  

  • [Federal Register Volume 61, Number 153 (Wednesday, August 7, 1996)]
    [Notices]
    [Pages 41142-41147]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-20078]
    
    
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    DEPARTMENT OF ENERGY
    Western Area Power Administration
    
    
    Final Power Allocation Procedures of the Post-2000 Resource 
    Pool--Pick-Sloan Missouri Basin Program, Eastern Division
    
    AGENCY: Western Area Power Administration, DOE.
    
    ACTION: Notice of final procedures.
    
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    SUMMARY: Western Area Power Administration (Western), a Federal power 
    marketing agency of the Department of Energy, hereby announces its Post 
    2000 Resource Pool Allocation Procedures to fulfill the requirements of 
    Subpart C--Power Marketing Initiative of the Energy Planning and 
    Management Program Final Rule, 10 CFR 905, published at 60 FR 54151. 
    The Post 2000 Resource Pool Allocation Procedures are Western's 
    implementation of Subpart C--Power Marketing Initiative of the Energy 
    Planning and Management Program Final Rule. Western's proposed 
    procedures were published in the Federal Register at 61 FR 2817, 
    January 29, 1996 and revised and clarified in the Federal Register at 
    61 FR 28574, June 5, 1996. Responses to public comments received 
    pertaining to the proposed procedures are included in this notice.
    
    DATES: The Post 2000 Resource Pool Allocation Procedures will become 
    effective 30 days from the date of publication of this notice, and will 
    remain in effect until December 31, 2020.
    
    ADDRESSES: Information regarding the Post 2000 Resource Pool Allocation 
    Procedures, including comments, letters, and other supporting documents 
    made or kept by Western for the purpose of developing the final 
    procedures, are available for public inspection and copying at the 
    Upper Great Plains Customer Service Region, Western Area Power 
    Administration, located at 2900 4th Avenue North, P.O. Box 35800, 
    Billings, MT 59107-5800.
    
    SUPPLEMENTARY INFORMATION: Western published a notice of proposed 
    procedures on January 29, 1996, to implement Subpart C--Power Marketing 
    Initiative of the Energy Planning and Management Program Final Rule, 10 
    CFR 905, published at 60 FR 54151 in the Federal Register. 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. Those 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 (P-SMBP-ED).
        Western held public information and comment forums on the proposed 
    procedures on February 14, 15, and 16, 1996, to accept oral and written 
    comments on the proposed procedures and call for applications. The 
    initial formal comment period ended March 4, 1996. On March 8, 1996, 
    Western published a notice to extend the time that written comments and 
    applicant profile data could be submitted until April 8, 1996. On June 
    5, 1996, in the Federal Register at 61 FR 28574, Western published a 
    30-day notice to respond to comments regarding Section III, General 
    Allocation Criteria, Paragraph E, to clarify the Post 2000 Resource 
    Pool Allocation Procedures in order to fulfill the intent of the 
    Program and called for additional applications.
        The Post 2000 Resource Pool Allocation Procedures set forth in this 
    Federal Register notice will explain in detail how Western intends to 
    implement Subpart C of the Power Marketing Initiative of the Energy 
    Planning and Management Program Final Rule in the P-SMBP-ED.
    
    Response to Customer Comments Regarding Post 2000 Resource Pool 
    Allocation Procedures
    
    I. Amount of Pool Resources
    
        Western proposed to allocate 4 percent of the P-SMBP-ED long-term 
    firm hydroelectric resource available as of January 1, 2001, as firm 
    power as provided for by the Program.
        Comment: We received several comments from Native American tribes 
    expressing great disappointment in the size (4 percent) of the resource 
    pool. It is their belief that the pool is not large enough to serve 100 
    percent of their current and future electrical needs. One comment 
    suggested that the amount of power available in the resource pool will 
    not be sufficient to meet Native American demand on January 1, 2001.
        Response: The 4 percent resource pool was derived from the Program, 
    and therefore the size of the pool is outside this process. Two future 
    1 percent resource pools were also identified as part of the Program 
    and allocations from these future resource pools will be dealt with in 
    future public processes.
    
    [[Page 41143]]
    
    II. General Eligibility Criteria
    
        Western proposes to apply general eligibility criteria to 
    applicants seeking an allocation of firm power under the proposed Post-
    2000 Resource Pool Allocation Procedures.
        Comment: Western received several comments suggesting that if a 
    Native American tribe establishes a utility and applies for an 
    allocation from Western, they should be considered under utility 
    applicant status, not as a Native American tribe applicant.
        Response: If a Native American tribe makes application under this 
    process as a utility applicant, Western would consider the application 
    under utility applicant criteria.
        Comment: Western received comments regarding the date for setting 
    up utility status. One comment suggested that section II.E. should be 
    written as follows: ``qualified utility and Native American applicants 
    must have achieved operating utility status by December 31, 1995.'' 
    Other comments suggested the deadline for achieving utility status be 
    extended to June 1, 1997 or possibly later.
        Response: The date for achieving utility status was determined by 
    the Program. To be eligible to apply for power available from the 
    resource pool, those entities that desire to purchase Western power for 
    resale to consumers, must have attained utility status by December 31, 
    1996. Section 905.35, Paragraph (c) of Subpart C, Power Marketing 
    Initiative, of 60 FR 54151 states that: All potential new customers, 
    except Native American tribes, must be ready, willing, and able to 
    receive and distribute or use power from Western. Ready, willing, and 
    able means that (1) the potential customer has the facilities needed 
    for the receipt of power or has made the necessary arrangements for 
    transmission and/or distribution service, (2) the potential customer's 
    power supply contract with third parties permit the delivery of 
    Western's power, and (3) metering, scheduling, and billing arrangements 
    are in place.
        Comment: Several comments expressed support for the use of the 
    Indian Self-Determination Act (Act) to determine eligibility of Native 
    American tribe applicants.
        Response: The allocation procedures use the Act to determine 
    whether or not an applicant is a qualified Native American applicant. 
    Use of the Act to make these decisions was first used in the Program 
    final rule. Because these allocation procedures will be used in 
    allocating the resource pool created by those regulations, Western used 
    the same definition in this process.
    
    III. General Allocation Criteria
    
        Western proposes to apply general allocation criteria to applicants 
    seeking an allocation of firm power under the proposed Post 2000 
    Resource Pool Allocation Procedures.
        Comment: One comment suggested that the 5,000 kW limitation on new 
    allocations should apply to all applicants, one comment suggested that 
    the limitation should not apply to Native American tribes and another 
    comment suggested the maximum amount be increased to 6,000 kW.
        Response: The Post 1985 Marketing Criteria established the 5,000 kW 
    limitation referenced in the allocation criteria. This limitation does 
    not apply to Native American tribe applicants. The 5,000 kW limit was 
    placed in the Post 1985 Marketing Plan to ensure that the sale of P-
    SMBP-ED power would benefit a wide class of users which is consistent 
    with Federal Reclamation Law.
        Comment: A comment was made that Native American tribes should have 
    priority status in any allocations that are being made.
        Response: The preference clause only provides that public entities 
    be given preference over private entities in the marketing of power 
    from Federal reclamation projects. There are no preference entities 
    which have greater privileges than another. Western has always 
    considered Native American tribes to be preference customers, and in 
    response to comments received during the Program public process, 
    Western has changed its policy of requiring that Native American tribes 
    achieve utility status prior to receiving an allocation.
        Comment: Western received many comments on how Native American 
    loads should be determined. Many stated that Western should develop a 
    standard method for determining Native American loads and apply that 
    method to all Native American tribe applicants. Others advocated using 
    actual tribal loads on the reservation.
        Response: A variety of methods of load estimation were submitted by 
    Native American tribes. Western accepted load estimates developed by 
    the Native American tribes. Inconsistent estimates will be adjusted by 
    Western. The proposed allocations developed from these load estimates 
    will be published in a subsequent Federal Register notice.
        Comment: Western received comments on the issue of off-reservation 
    use of Native American tribe allocations. The majority of the comments 
    supported use of allocations by qualified Native American tribe 
    applicants on the reservation only. Others supported off-reservation 
    use under certain circumstances. In particular, several comments 
    advocated off-reservation use for the Turtle Mountain Tribe.
        Response: Off-reservation use of Native American tribe allocations 
    under certain circumstances as determined by Western was allowed for in 
    60 FR 54151. The circumstances under which off-reservation use of a 
    Native American tribe allocation will be allowed will be determined by 
    Western on a case-by-case basis after final allocations are made.
        Comment: Western received comments that Native American tribes are 
    already receiving benefits of Federal hydropower through the 
    cooperatives that serve them and these benefits need to be considered 
    when Western makes allocations to Native American tribes so they do not 
    receive more than 100 percent of their current electrical requirements.
        Response: Western understands that some Native American tribes are 
    already receiving the benefits of Federal hydropower through the 
    cooperatives that serve them. However, the methodology for determining 
    Native American tribal allocations will be set forth in a subsequent 
    future Federal Register notice. Therefore, this comment will be 
    addressed in that notice.
        Comment: Western received many comments on the proposal to adjust 
    utility and nonutility applicants' loads using Mid-Continent Area Power 
    Pool data trends. Some comments stated that actual 1979-80 data should 
    be used. Others stated that unadjusted 1994-95 data should be used. One 
    comment suggested basing allocations on load data from November 1994 
    through October 1995.
        Response: As revised and clarified in the Federal Register at 61 FR 
    28574, June 5, 1996, Western will use actual unadjusted load data from 
    May 1994 through April 1995 to determine utility applicants' 
    allocations. Western agrees with the numerous comments that using Mid-
    Continent Area Power Pool data trends to adjust utility applicants' 
    loads would unfairly penalize those applicants who had little or no 
    load growth between 1979 and 1995.
        Comment: Western received a comment to consider a reallocation 
    based on a percentage to all customers should there be over 5 MW of 
    firm power not under contract subsequent to the closing date for 
    executing firm power contracts.
        Response: As stated in the Final Post 2000 Resource Pool Allocation
    
    [[Page 41144]]
    
    Procedures section III.H below, Western, at its discretion, reserves 
    the right to determine usage of firm power not under contract.
        Comment: Western received comments that support Western's proposal 
    to dissolve the resource pool as long as it is not rate impacting.
        Response: Western is in agreement with this comment and will 
    consider the best available options should this power not allocated in 
    these procedures be available.
        Comment: Western received comment that the entire 4 percent 
    resource pool should be allocated to qualified applicants.
        Response: Western plans to make allocations from the 4 percent 
    resource pool to qualified utility and nonutility applicants based upon 
    Post-1985 Marketing Plan Criteria and to Native American tribe 
    applicants based upon serving a fair share of their load. Based upon 
    these criteria, the total allocations from the resource pool may be 
    less than the resource pool.
        Comment: It was suggested that a Native American tribe would have 
    to demonstrate the existence of an agreement with a viable utility 
    system for delivery of the allocation to the end user.
        Response: Western has determined that placing an additional 
    requirement on Native American tribes would be unduly burdensome and is 
    not consistent with the intent of the Program at 60 FR 54151. If an 
    agreement with a utility responsible for delivery is not attainable, 
    Western has reserved the right to provide the economic benefits of its 
    resources directly to Native American tribes.
        Comment: Where is the funding going to come from for making credits 
    to tribal members?
        Response: Should this program require funding, Western will use net 
    bill or bill credit methods. If these methods are not sufficient, 
    additional appropriations from Congress may have to be made to provide 
    economic benefit.
        Comment: The formula for calculating the amount of credit must 
    recognize the specific situation of the local utility, because their 
    costs vary significantly from Western customer to Western customer.
        Response: Western is in agreement with the comment. Should any 
    crediting formula be required, Western will recognize the specific 
    local utility situation as needed.
        Comment: Western's customers have already given up a portion of 
    their allocations; they cannot also be asked to fund additional payment 
    to tribal members. It appears they may have increased rates on the 
    remainder of their allocation.
        Response: Western has no intent to increase P-SMBP-ED rates.
        Comment: Western received comment that the suggested method of 
    delivering the benefits of Federal hydropower to the Native American 
    tribes would be a bill crediting arrangement.
        Response: Western agrees that a bill crediting arrangement is a 
    viable method of delivering the benefits of Federal hydropower to 
    Native American tribes. However, flexibility must be retained in the 
    delivery of such benefits in order to fit a diverse group of Native 
    American tribes and power suppliers. The method for delivering the 
    benefits of Federal hydropower to the tribes will be determined 
    following the allocation process.
        Comment: Western received comment that if Federal hydropower 
    benefits are delivered to Native American tribes in the form of 
    monetary payments, those payments should be contractually obligated to 
    go toward energy use.
        Response: Western views direct monetary payments in lieu of 
    delivery of Western power and energy as a last resort to be used only 
    if unanticipated obstacles to the delivery of Federal hydropower 
    benefits arise. Should this situation arise, Western will consider 
    contractual stipulations on how those monetary payments are to be used 
    by Native American tribes. Such stipulations are beyond the scope of 
    this public process.
        Comment: Western received comment that if tribal members' bills are 
    credited, the portion of the resource pool associated with these 
    credits should be retained by all existing customers at cost-based 
    rates.
        Response: Western will not increase existing customers' allocations 
    for the amount associated with any tribal energy credits. Energy 
    crediting may not always be the means by which some Native American 
    tribes receive the benefits of Federal hydropower. In the event that at 
    a later time a Native American tribe changes the method by which they 
    receive the benefits of Federal hydropower, Western will not allocate 
    the energy associated with bill credits to existing customers.
    
    IV. General Contract Principles
    
        Western proposes to apply general contract principles to all 
    applicants receiving an allocation of firm power under the proposed 
    Post 2000 Resource Pool Allocation Procedures.
        Comment: A comment was offered which suggested that contracts with 
    utility applicants should explicitly require cooperation on the part of 
    those utilities in the transmission of firm power to the Native 
    American tribes as a condition of that sale.
        Response: To date, Western has received cooperation from P-SMBP-ED 
    cooperatives on the issue of delivery of hydropower benefits to Native 
    American tribes. Even if unanticipated obstacles to the delivery of 
    these benefits arise, Western has retained the right to provide the 
    economic benefits of its resource directly to Native Americans. Because 
    of the options available, Western sees no reason to address this issue 
    contractually. Western has already executed the contract extensions for 
    the P-SMBP-ED resource which will exist after the 4 percent resource 
    pool is created. In addition, there may be utilities which Western does 
    not contract with for a firm power allocation which would be 
    responsible for transmission of Native American tribe allocation.
        Comment: Receipt of a Federal power allocation by a Native American 
    tribe must allow the current power supplier the ability to negotiate 
    delivery charges which prevent the negative financial effect of 
    creating the need to raise rates.
        Response: Delivery arrangements are the responsibility of the new 
    customers.
        Comment: The proposed rule should include assisting the Native 
    American tribes in obtaining a suitable third-party distribution system 
    retail wheeling agreement.
        Response: The P-SMBP-ED cooperatives have been supportive of the 
    delivery of the benefits of power allocations to Native American 
    tribes. 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.
        Comment: A comment suggested that it would be appropriate to 
    include the utility ultimately responsible for delivery of the 
    allocation to Native American tribes in the contract process, and that 
    Western should be an advocate in favor of the tribes in that process.
        Response: Western will assist the allottee in obtaining third-party 
    transmission arrangements for delivery of firm power. To the extent 
    that utilities are involved in these arrangements, Western will work 
    with those entities. However, it is the ultimate responsibility of the 
    allottee to obtain its own delivery arrangements.
        Comment: All new customers, utility, nonutility, and Native 
    American tribes alike, should have the same contractual provisions in 
    their contracts as
    
    [[Page 41145]]
    
    Western's present customers. Specifically, all contracts should 
    continue to have the provision preventing the sale of Federal power to 
    customers other than retail customers.
        Response: Western is in agreement with this comment. The contract 
    with all new customers will contain Western's existing general contract 
    principles.
        Comment: If Western experiences additional costs under the proposed 
    pool allocation, all program participants should participate in these 
    costs, not just the existing Western utilities.
        Response: Our interpretation of this comment was that all firm 
    power customers of Western, inclusive of the new customers brought in 
    with the allocation of the 4 percent resource pool, will all be 
    impacted if there are additional costs to Western under the proposed 
    pool allocations. Western agrees that all firm power customers, 
    inclusive of the new customers, would be impacted through their rates 
    if there is a cost change due to the allocation of the 4 percent 
    resource pool.
        Comment: We received several comments requesting that Native 
    American tribes not be required to comply with the Integrated Resource 
    Planning (IRP) requirements of the Program, unless the Native American 
    tribe applies as a utility.
        Response: Title II of the 1992 Energy Policy Act requires all 
    Western customers to comply with the IRP criteria. This requirement was 
    also brought forward and restated in the Program language. Therefore, 
    IRP requirements are required of all customers including Native 
    American tribes.
    
    Responses to Comments Regarding Other Issues
    
        Comment: We received a comment from a cooperative expressing their 
    disappointment at the establishment of the 4 percent resource pool 
    because it means a rate impact for members.
        Response: Western understands the concern for customers who may be 
    adversely impacted with the reduction of their Federal power 
    allocations. However, this reduction was provided for in the Program 
    and is beyond the scope of this public process.
        Comment: We received a comment from a cooperative expressing 
    disappointment that Native American tribes will be allocated power from 
    the 4 percent resource pool, because it comes as an expense to Western 
    customers in the region.
        Response: Western understands the concern of customers who may be 
    adversely impacted with the reduction of their Federal power 
    allocations. However, this reduction was provided for in the Program 
    and is beyond the scope of this public process.
        Comment: We received a comment requesting Western's Upper Great 
    Plains Customer Service Region to establish a ``Native American Desk'' 
    (Desk) to handle Native American issues.
        Response: We are a diverse agency with many different functions. It 
    is our belief that issues with Native Americans are handled effectively 
    and efficiently by dealing directly with the divisions involved in each 
    issue. The establishment of a Desk is not part of this public process 
    and will be considered if it would result in increased responsiveness 
    to Western's Native American customers.
        Comment: Federal facilities, such as the Bureau of Indian Affairs 
    or other Federal agencies, should not be eligible to receive any new 
    resources.
        Response: Federal facilities are eligible for allocations of 
    Federal power as the preference clause has been defined through Federal 
    Reclamation Law.
        Comment: One comment suggested that any allocation to a Native 
    American tribe should be made jointly to both the tribe and the utility 
    that will transfer the resource.
        Response: The intent of the Program at 60 FR 54151 was to provide 
    the benefits of Federal hydropower allocations directly to individual 
    tribes. This principal is consistent with how Western treats existing 
    customers. Western does not feel that the goal of the Program would be 
    served by jointly allocating Native American allocations to utilities 
    and tribes.
        Comment: Several comments were received expressing a concern that 
    the allocation procedures would somehow imply or require tribal 
    jurisdiction over the entity which will supply the Native American 
    load.
        Response: The issue of tribal jurisdiction is beyond the scope of 
    this public process. Western is not the proper authority to decide that 
    issue, as it is outside of our mission. However, Western has not 
    intended to expand the scope of tribal jurisdiction with these 
    allocation procedures.
        Comment: One comment expressed appreciation for Western's Federal 
    American Indian policy.
        Response: Western appreciates the positive response with respect to 
    the attempts it has made to address Native American issues. Western 
    supports the Department of Energy's American Indian policy which 
    stresses the need for a government-to-government, trust-based 
    relationship.
        Comment: Western received several requests for extending the 
    deadline for submittal of the Applicant Profile Data (APD).
        Response: 61 FR 9449 published March 8, 1996, extended the deadline 
    for submittal of APD and comments until April 8, 1996. Also, 61 FR 
    28574 published June 5, 1996, clarifying the terms of Post 2000 
    Resource Pool Allocation Procedures, reopened the deadline for 
    submittal of APD until July 5, 1996.
        Comment: Negotiations should begin as soon as possible.
        Response: Western agrees with this comment. Western interprets this 
    comment as to when will Western negotiate contracts with new customers 
    for firm electric service. Western intends to begin negotiating new 
    contracts as soon as possible.
        Comment: One comment suggested that Greenfield, Iowa, should be 
    eligible for a minimum allocation of 100 kW.
        Response: Only that portion of the Greenfield load within the P-
    SMBP-ED marketing area is eligible for an allocation as part of this 
    process. All criteria are applicable to that portion of Greenfield's 
    load.
        Comment: We received comments about all customers, including Native 
    American tribes, being included in future withdrawals for the creation 
    of resource pools.
        Response: This was determined in Subpart C, Power Marketing 
    Initiative, Paragraph 905.32 (d) of 60 FR 54151. The additional 
    resource pool increments shall be established from the then existing 
    customers.
        Comment: Western received a comment that allocations from the 4 
    percent resource pool is not the only responsibility or obligation the 
    Federal government has to Native American tribes.
        Response: This comment is beyond the scope of this public process. 
    The 4 percent resource pool was established by the Program. This 
    process is designed to allocate the 4 percent as set forth by the 
    Program.
        Comment: Western received a comment that the qualifications for 
    qualified applicants should be changed if necessary, such that the 
    Bureau of Reclamation, as sponsor for the Mni Wiconi Project, meets the 
    definition for qualified applicant.
        Response: Western intends to determine the Bureau of Reclamation 
    eligibility based on the Final Post 2000 Resource Pool Allocation 
    Procedures outlined below.
    
    [[Page 41146]]
    
    Final Post 2000 Resource Pool Allocation Procedures
    
    I. Amount of Pool Resources
    
        Western will allocate up to 4 percent of the P-SMBP-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 will apply the following general eligibility criteria to 
    applicants seeking an allocation of firm power under the Post 2000 
    Resource Pool Allocation Procedures.
        A. All qualified applicants must be preference entities in 
    accordance with section 9c of the Reclamation Project Act of 1939, 43 
    U.S.C. 485h(c), as amended and supplemented.
        B. All qualified applicants must be located within the currently 
    established P-SMBP-ED marketing area.
        C. All qualified applicants must not be currently receiving 
    benefits, directly or indirectly, from a current P-SMBP-ED firm power 
    allocation. Qualified Native American applicants are not subject to 
    this requirement.
        D. Qualified utility and nonutility applicants must be able to use 
    the firm power directly or be able to sell it directly to retail 
    customers.
        E. Qualified utility applicants that desire to purchase power from 
    Western for resale to consumers, including municipalities, 
    cooperatives, public utility districts, and public power districts must 
    have utility status by December 31, 1996. Utility status means 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. Sec. 450b, as amended.
    
    III. General Allocation Criteria
    
        Western will apply the following general allocation criteria to 
    applicants seeking an allocation of firm power under the 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 the Federal 
    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 P-SMBP-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 
    P-SMBP-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.
        E. Allocations made to qualified utility and nonutility applicants 
    will be based on the loads experienced in the 1994 summer season and 
    the 1994-95 winter season. Western will apply the Post-1985 Marketing 
    Plan criteria to these loads.
        F. Energy provided with firm power will be based upon the 
    customers monthly system load factor.
        G. Any electric service contract offered to a new customer shall be 
    executed by the customer within six 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 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 qualified utility and nonutility 
    applicants shall be 5,000 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 will apply the following general contract principles to all 
    applicants receiving an allocation of firm power under the Post 2000 
    Resource Pool Allocation Procedures.
        A. Western shall reserve the right to reduce a customers summer 
    season contract rate of delivery by up to 5 percent for new project 
    pumping requirements, by giving a minimum of 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 5 years notice in 
    response to changes in hydrology and river operations. Any such 
    adjustments shall only take place after a public process.
        C. Western shall assist the allottee in obtaining third-party 
    transmission arrangements for delivery of firm power allocated under 
    these procedures to new customers; nonetheless, each allottee is 
    ultimately responsible for obtaining its own delivery arrangements.
        D. Contracts entered into under the 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 procedures shall 
    incorporate Western's standard provisions for power sales contracts, 
    integrated resource planning, and the general power contract 
    provisions.
    
    VI. Review Under the Regulatory Flexibility Act
    
        The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (Act), 
    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 this rulemaking relates to services offered by Western, 
    and, therefore, is not a rule within the purview of the Act.
    
    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 requested input regarding the identification of any 
    additional environmental issues both in the Federal Register at 61 FR 
    2817, January 29, 1996, and at the public meetings. No environmental 
    comments were received. Therefore, Western has determined that
    
    [[Page 41147]]
    
    the analysis in the Program Environmental Impact Statement is 
    sufficient for this action and current DOE regulations indicate that no 
    further National Environmental Policy Act documentation is required.
    
    IX. Determination Under Executive Order 12866
    
        DOE has determined 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, D. C. on July 30, 1996.
    Joel K. Bladow,
    Assistant Administrator.
    [FR Doc. 96-20078 Filed 8-6-96; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Published:
08/07/1996
Department:
Western Area Power Administration
Entry Type:
Notice
Action:
Notice of final procedures.
Document Number:
96-20078
Dates:
The Post 2000 Resource Pool Allocation Procedures will become effective 30 days from the date of publication of this notice, and will remain in effect until December 31, 2020.
Pages:
41142-41147 (6 pages)
PDF File:
96-20078.pdf