[Federal Register Volume 61, Number 189 (Friday, September 27, 1996)]
[Notices]
[Pages 50810-50812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24807]
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DEPARTMENT OF ENERGY
Bonneville Power Administration
Policy on Excess Federal Power
AGENCY: Bonneville Power Administration (Bonneville), Department of
Energy (DOE).
ACTION: Notice.
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SUMMARY: On March 29, 1996, BPA initiated a public process to develop a
policy to implement the excess federal power marketing provisions of
the Energy and Water Development Act of 1996, Pub. L. No. 104-46,
Sec. 508(a) and (b), 109 Stat. 402, (1995) (codified at 16 U.S.C.
Sec. 832m) (hereinafter ``P.L. 104-46''). BPA published a proposed
policy in the Federal Register for public review and received comment
during a 60-day public comment period. BPA has considered all comments
received and has finalized its policy to implement this new power
marketing authority. The policy is published below.
A Record of Decision (ROD) regarding this policy has been prepared
and explains the public process; the distinction between BPA's surplus
power marketing under prior legislation and excess federal power
marketing activities under P.L. 104-46; provides an overview and
delineates BPA's final policy on excess federal power; responds to
public comment; explains this action's compliance with the National
Environmental Policy Act; and adopts a final policy on excess federal
power.
The publication of this policy and execution of the ROD is a final
action of the BPA Administrator under section 9(e) of the Pacific
Northwest Electric Power Planning and Conservation Act (Northwest Power
Act), 16 U.S.C. Sec. 839(e).
ADDRESSES: Copies of the ROD may be obtained by calling BPA's toll-free
document request line: 1-800-622-4520.
FOR FURTHER INFORMATION, CONTACT: David J. Armstrong--MPF, Bonneville
Power Administration, P.O. Box 3621, Portland, Oregon, 97208-3621,
phone number (503) 230-3658, fax number (503) 230-7568.
Policy on Excess Federal Power
I. Definitions
A. Firm Contractual Obligations: are those Bonneville sales or
other dispositions of power entered into under and governed by sections
5(b) and 5(d) of the Pacific Northwest Electric Power Planning and
Conservation Act (Northwest Power Act), 16 U.S.C. 839c(b) and 839c(d).
Such sales include the firm requirements power sales in the Pacific
Northwest region to Bonneville's actual and planned computed
requirements customers, metered requirements customers, direct-service
industrial customers and investor-owned utility customers.
B. Delayed-Delivery Contracts: are contracts by Bonneville for the
sale or disposition of power which provide for actual delivery of power
to begin at some time after the effective date of the contract.
C. Surplus Power: shall have the same meaning as electric power
which is surplus under section 5(f) of the Northwest Power Act. 16
U.S.C. 839c(f).
II. Determination of Excess Federal Power
A. Reductions in Contractual Obligations under Sections 5(b) and
5(d) of the Northwest Power Act:
1. As of January 1, 1995, BPA's Firm Contractual Obligations
equaled 8298 average megawatts (aMW). This number
[[Page 50811]]
will be the baseline for comparing reductions in such obligations to
determine annual amounts of excess federal power. This is a fixed
number that will not change.
2. To determine the energy component of excess federal power, each
year Bonneville will prepare a current forecast, in average megawatts,
of Firm Contractual Obligations based upon its then-current contracts.
In order to allow for sales or dispositions of excess federal power
under Delayed-Delivery Contracts with delivery terms of up to 7 years,
Bonneville will produce a 10-year annual average energy (average
megawatts) forecast of its then-current Firm Contractual Obligations.
For each year of the forecast period, the excess federal power in firm
energy from reductions in Firm Contractual Obligations will equal the
difference between the forecasted Firm Contractual Obligations and 8298
aMW.
3. Bonneville will calculate an amount of excess peaking capacity
(megawatts) associated with reductions and increases in its then-
current Firm Contractual Obligations by calculating an average annual
load factor based on all of its forecasted Firm Contractual
Obligations. This load factor will be applied to the result of the
calculation in section (2) above to determine an amount of excess
capacity.
B. Operations of the Federal Columbia River Power System Primarily
for the Benefit of Fish and Wildlife: The amount of excess federal
power resulting from operations of the Federal Columbia River Power
System primarily for the benefit of fish and wildlife is 129 average
megawatts annually. The amount of excess peaking capacity associated
with these operations is 129 megawatts. This is a fixed number that
will not change unless there is a need to modify the number as
determined by Bonneville.
C. Net Excess Federal Power: The sum of the results of the
calculation in (2) above (the Reductions in Bonneville's sections 5(b)
and 5(d) contractual obligations) and, unless modified, 129 aMW will be
reduced by the amount of then-current sales or other dispositions of
excess federal power to determine the net amount available for
marketing in each year of the forecast period. Bonneville will
determine this amount annually.
D. Process: The results of the preceding determinations will be
included in an annual notification to Bonneville's then-existing
regional customers, and at Bonneville's discretion, non-regional
customers, of Bonneville's intent to market excess federal power.
Bonneville may also include in this annual notification the amount of
Surplus Power available for disposition.
III. Sales of Excess Federal Power in Any Region
A. Bonneville will, at its discretion, sell or otherwise dispose of
excess federal power in any region consistent with its authority to
market federal power under its authorizing legislation, including
section 508 of the 1996 Energy and Water Development Appropriations Act
(P.L. 104-46). The actual amount of power sold or otherwise disposed of
as excess federal power will not exceed and may be less than the amount
of Surplus Power projected to be available based upon Bonneville's
then-current load/resource planning and the amount of excess federal
power Bonneville determines to be available consistent with section II
above.
B. Sales or other dispositions of excess federal power shall not be
subject to the second sentence of section 5(a) of the Bonneville
Project Act. 16 U.S.C 832d(a).
C. Bonneville will annually notify then-existing regional
customers, and at its discretion, non-regional customers, of the amount
of excess federal power resulting from the determinations in section II
above. This notification will also contain the range of rates, terms
and conditions within which Bonneville will market available power and
may contain the amount of Surplus Power determined by Bonneville to be
available for marketing. This notice will be an invitation to contract
for the sale or other disposition of power consistent with the range of
terms and conditions contained in the notice. Regional customers will
have 30 days from the date of this notification to contact Bonneville
with a request to purchase power consistent with the notice in order to
have preference and priority to purchase the power. Upon such a
request, Bonneville will enter into good faith negotiations for the
sale or other disposition of power with the regional customer
consistent with the general rate, terms and conditions contained in the
notice. Upon conclusion of the negotiations, Bonneville will offer the
power to the regional customer. If Bonneville receives competing
requests to purchase excess federal power, Bonneville will proceed to
negotiate sales consistent with public preference and then preference
under section 508 of P.L. 104-46. Within each class of customer,
Bonneville will negotiate and offer to sell, based upon the time of
receipt of the request.
D. On a case by case basis, Bonneville will average the net amount
of available excess federal power in each year of a proposed sale or
other disposition to determine whether the amount of excess federal
power is sufficient for a multi-year transaction.
E. All contracts for the sale or other disposition of excess
federal power will be binding in accordance with their terms for the
duration of the contract and will be firm obligations of the
Administrator.
IV. Sales or Other Dispositions of Excess Federal Power to Purchasers
Outside the Pacific Northwest Region
A. Bonneville will, at its discretion, sell or otherwise dispose of
excess federal power, to purchasers outside the region for delivery
terms of up to 7 years as permitted by section 508(b) of P.L. 104-46.
Such transactions may be renewed subject to the availability of excess
federal power. Prior to executing a renewal of one or more years,
Bonneville will notify regional customers of the proposed renewal,
consistent with the notice procedures for long-term transactions in
subsection IV(C) below.
B. Sales or other dispositions of excess federal power to
purchasers outside the region will not be subject to section 2,
subsections (a), (b), and (c) of section 3, and section 7 of the Act of
August 31, 1964, 16 U.S.C. 837a, 837b(a), (b) and (c), and 837f (the
Northwest Preference Act), and section 9(c) of the Northwest Power Act,
16 U.S.C. 839f(c).
C. Long-term Sales or Other Dispositions of Excess Federal Power To
Purchasers Outside the Pacific Northwest: For proposed sales or other
dispositions of excess federal power to purchasers outside the region
for a period of one or more years, Bonneville will notify then-existing
regional customers of the proposed transactions. This notice will
contain information on the essential rate, terms and conditions of the
proposed out-of-region transaction as determined by Bonneville.
Regional customers interested in purchasing the power under the rate,
terms and conditions contained in the notice will have up to 30 days
and no less than five days, as determined by Bonneville, to request a
purchase. Upon a request to purchase, Bonneville will offer the power
to the regional customer under the identical rate, terms and conditions
in the notice, except those terms and conditions that clearly do not
apply to the particular purchaser (such as points of delivery). This
offer will remain open for five days.
[[Page 50812]]
D. Short-term Sales or Other Dispositions of Excess Federal Power
To Purchasers Outside the Pacific Northwest:
1. Primary Notice: For proposed sales or other dispositions of
excess federal power to purchasers outside the region for a period of
less than one year, the annual notification in section III(C) above
will be the primary notification.
2. Additional Notice: As determined by Bonneville and as warranted
in Bonneville's opinion by system or market conditions, Bonneville will
issue additional notices of available excess federal power which will
contain the same type of information as in the annual notice. Regional
customers interested in purchasing this power will have 5 days or less,
depending upon the effective delivery date and the duration of the
short-term sale or other disposition, within which to contact
Bonneville may provide such notices in its daily prescheduling
conferences with customers.
Policy on Sales of Excess Federal Power Outside the Pacific Northwest
Region to Retail Customers
In marketing excess Federal power outside the Pacific Northwest,
Bonneville does not intend to use its status as a Federal agency as a
basis for seeking to shield retail sales to non-Federal entities from
restrictions, terms and conditions of State law concerning access to
retail markets. Moreover, Bonneville intends to defer to State policies
concerning access to retail markets with respect to any dispositions of
excess Federal power to Federal end users unless an exception is made
by the Secretary of Energy in a specific circumstance. Consequently,
Bonneville adopts the following policy:
A. Retail Sales to non-Federal Customers: Bonneville will not make
direct retail sales of excess Federal power outside the Pacific
Northwest to non-Federal customers unless the purchaser obtains any
third-party transmission or distribution services needed to effect
delivery of such power to the purchaser. As a matter of law, the
purchaser's acquisition of such transmission or distribution services
would be subject to any terms and conditions of service established
under applicable State and Federal law (including rules and orders
thereunder).
B. Dispositions to Federal End Users: The policy under subsection
(a) will guide dispositions of excess Federal power to Federal end
users outside the Pacific Northwest unless the Secretary of Energy
determines on a case-by-case basis that the interests of the United
States otherwise require.
Issued in Portland, OR on September 19, 1996.
Randall W. Hardy,
Administrator and Chief Executive Officer.
[FR Doc. 96-24807 Filed 9-26-96; 8:45 am]
BILLING CODE 6450-01-P
