99-29675. Energy Planning and Management Program; Integrated Resource Planning Approval Criteria  

  • [Federal Register Volume 64, Number 221 (Wednesday, November 17, 1999)]
    [Proposed Rules]
    [Pages 62604-62613]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-29675]
    
    
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    Proposed Rules
                                                    Federal Register
    ________________________________________________________________________
    
    This section of the FEDERAL REGISTER contains notices to the public of 
    the proposed issuance of rules and regulations. The purpose of these 
    notices is to give interested persons an opportunity to participate in 
    the rule making prior to the adoption of the final rules.
    
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    Federal Register / Vol. 64, No. 221 / Wednesday, November 17, 1999 / 
    Proposed Rules
    
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    DEPARTMENT OF ENERGY
    
    Western Area Power Administration
    
    10 CFR Part 905
    
    RIN 1901-AA84
    
    
    Energy Planning and Management Program; Integrated Resource 
    Planning Approval Criteria
    
    AGENCY: Western Area Power Administration, DOE.
    
    ACTION: Notice of proposed rulemaking and public forum.
    
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    SUMMARY: The Western Area Power Administration (Western) is seeking 
    public comment on its proposed revisions to current regulations that 
    require customers to prepare integrated resource plans. Western is 
    proposing revisions to allow customers more alternatives in meeting the 
    integrated resource planning requirements, thereby enhancing customer 
    competitiveness through increased flexibility and reduced burdens in 
    complying with this rule.
    
    DATES: Written comments, in hard copy or via email, must be received no 
    later than 5 p.m. Mountain Standard Time on December 30, 1999. A joint 
    public information and public comment forum will be held starting at 1 
    p.m. Mountain Standard Time on November 30, 1999.
    
    ADDRESSES: Written comments should be sent to Mr. Simmons Buntin, Power 
    Marketing Support Office, Western Area Power Administration, P.O. Box 
    281213, Lakewood, CO 80228-8213. Prior to November 30, 1999, comments 
    can be sent by fax to (303) 275-1616; after November 30, 1999, the fax 
    number is (720) 962-7427. Comments also can be sent by electronic mail 
    to buntin@wapa.gov. The public forum will be held at the Radisson Hotel 
    Denver, 3333 Quebec Street, Denver, Colorado 80207.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Simmons Buntin, prior to November 
    30, 1999, telephone number is (303) 275-1739; after November 30, his 
    number is (720) 962-7419. Mr. Buntin's electronic mail address is 
    buntin@wapa.gov.
    
    SUPPLEMENTARY INFORMATION:
    I. Introduction and Background
    II. Section by Section Discussion of Changes
    III. Public Information/Comment Forum Procedures
    IV. Procedural Requirements
        A. Executive Order 12866
        B. Review Under the Regulatory Flexibility Act
        C. Review Under the Paperwork Reduction Act
        D. Review Under the National Environmental Policy Act
        E. Review Under Executive Order 13132
        F. Review Under the Unfunded Mandates Reform Act of 1995
        G. Review Under Executive Order 12988
        H. Treasury and General Government Appropriations Act, 1999
        I. Review Under Executive Order 13084
    
    I. Introduction and Background
    
        Section 114 of the Energy Policy Act of 1992 (EPAct), Public Law 
    102-486, requires integrated resource planning by Western's customers. 
    Western implemented EPAct through completion of the Energy Planning and 
    Management Program (Program) in October 1995. The Program was published 
    in the Code of Federal Regulations at 10 CFR part 905.
        Western's Administrator is required by EPAct to initiate a public 
    process to review Western's integrated resource planning (IRP) 
    regulations within 1 year of January 1, 2000. The Administrator is 
    authorized at that time to revise Western's criteria for approving 
    integrated resource plans ``to reflect changes, if any, in technology, 
    needs, or other developments.''
        Both the wholesale and retail aspects of the electric utility 
    industry are changing, and change is expected to continue. The 15 
    States within which Western markets power have taken very different 
    approaches to deregulation with diverse schedules for implementing any 
    changes to the status quo. Additionally, the timing and scope of any 
    Federal restructuring legislation is uncertain. Given the increasingly 
    competitive and deregulated electricity marketplace, Western's 
    integrated resource planning regulations, which were adopted under the 
    traditional utility planning framework, warrant review.
        Western is proposing an approach that features customer choice and 
    flexibility, and reflects the transition of the electric utility 
    industry. Customers can choose to continue preparing IRPs, or can adopt 
    approaches that are emerging in lieu of IRP requirements. These new 
    approaches include compliance with a defined level of investment in 
    energy efficiency and/or renewables, compliance with an established 
    public benefits program, or compliance with mandated energy efficiency 
    and/or renewable energy reporting requirements.
        Only subparts A and B of the existing regulations are proposed for 
    revision.
    
    II. Section by Section Discussion of Changes
    
        Many wording and format changes contained in the proposed rule have 
    been drafted to comply with the President's initiative to use plain 
    language in government writing.
        The purpose statement in Sec. 905.1 would be updated to describe 
    acceptable customer activities, in light of the changes taking place in 
    the electric utility industry, that meet the objectives of section 114 
    of EPAct.
        In Sec. 905.2, we have proposed removing the definition for 
    applicable IRP and adding new terms (energy efficiency and/or renewable 
    energy report, minimum investment report and public benefits charge) in 
    order to clearly describe the new alternatives for customer compliance. 
    We propose shortening the definition of integrated resource planning, 
    modifying the definition of small customer to include end-use 
    customers, and removing the definition of least-cost option since a 
    customer is free to pursue renewables and energy efficiency even if 
    other resources appear to be less costly. Additionally, definitions 
    would be added for Region, IRP cooperative, and renewable energy.
        Changes to Sec. 905.10 would be consistent with the broader array 
    of compliance options available to customers under this proposed 
    regulation. The exception for State-regulated, investor-owned utilities 
    that exists today would be deleted, in order to assure equitable 
    compliance by all of Western's long-term firm customers.
        Section 905.11, which deals with the contents of an integrated 
    resource plan, would be streamlined and simplified. The number of IRP 
    criteria would be reduced from seven to six, eliminating least-cost 
    designation as a separate criteria while combining its relevant parts 
    with the identification of resource
    
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    options criteria. One prominent theme in this area is confidentiality 
    of information. To ensure that proprietary information is not made 
    available to competitors, customers would not have to submit sensitive 
    information to Western. Summaries of customer activities would be 
    adequate, as long as Western can obtain more detailed supporting 
    information upon request. This proposal also intends to lessen the 
    paperwork burden on customers. In recognition of the fast-paced change 
    in the industry, Western proposes to allow customers to define their 
    own action planning horizons to carry out IRP.
        Several regulatory provisions would be renumbered to improve 
    organization and flow. Proposed Secs. 905.12 and 905.13 would 
    reorganize the current provisions of Sec. 905.12 for clarity, but 
    Western proposes no substantive change to IRP submittal requirements. A 
    more detailed discussion of the cooperative IRP submittal process would 
    be added in Sec. 905.13. Proposed Sec. 905.14 contains the provisions 
    of currently effective Sec. 905.13. Proposed Sec. 905.15, which deals 
    with annual IRP progress reports, contains the substance of existing 
    Sec. 905.16.
        Sections 905.15 and 905.16 would be modified to include statements 
    that annual progress reports and update letters can be submitted 
    outside of the 30-day anniversary date window if previously approved by 
    Western.
        Section 905.16 describes the proposed requirements of the small 
    customer plan alternative for eligible customers. Changes to the 
    existing rule would include expansion of the small customer plan method 
    of compliance to include all end-use customers regardless of size. 
    Small utilities could take advantage of the small customer provision, 
    even if they belong to member-based associations or joint-action 
    agencies.
        Section 905.17 is a new section that would allow customers to 
    comply with the regulation by adopting a minimum level of financial or 
    resource investment in energy efficiency initiatives and/or renewable 
    energy activities required by State, Tribal, or Federal law. In order 
    to avoid duplication and conflicting mandates, Western is proposing to 
    accept these customer efforts as satisfying the provisions of the 
    EPAct. Such a minimum investment standard has already been adopted in 
    the State of Iowa.
        Section 905.18 is another new section that would allow customers to 
    comply with the regulation by participating in a public benefits 
    program required by State, Tribal, or Federal law, under which a 
    defined minimum percentage of a customer's gross revenues is devoted to 
    public purposes. In order to avoid duplication and conflicting 
    mandates, Western proposes to accept these customer efforts as 
    satisfying the provisions of EPAct. Such a public benefits mandate has 
    already been adopted in the States of California, Montana, and New 
    Mexico.
        State and Federal end-use customers often must comply with 
    standards and reporting requirements that document efforts in IRP, 
    energy efficiency, and renewable energy. An example of this compliance 
    is Executive Order 13123, which requires Federal agencies to 
    aggressively reduce energy consumption and to expand the use of 
    renewable energy. Section 905.19 would accept these compliance efforts 
    if they meet the objectives of EPAct.
        Former Secs. 905.15-905.21 would be renumbered as Secs. 905.20-
    905.25 and would be modified to enhance understanding and clarity.
        A redline-strikeout version comparing the proposed revisions with 
    the current subparts A and B is available on Western's Website at 
    www.wapa.gov.
    
    III. Public Information/Comment Forum Procedures
    
        Interested parties may submit comments on Western's proposed 
    revisions to subparts A and B of the regulations in two ways: either 
    (a) directly to the project manager via mail, e-mail, fax, or hand 
    delivery no later than 5 p.m. Mountain Standard Time on December 30, 
    1999; or (b) in person or through a representative at the joint public 
    information and public comment forum to be held beginning at 1 p.m. 
    Mountain Standard Time on November 30, 1999, at the Radisson Hotel 
    Denver. Addresses for comments and the forum are provided earlier in 
    the preamble.
        The joint public information and public comment forum will feature 
    a presentation by Western staff summarizing proposed revisions to 
    subparts A and B of the regulations, the reasons for revisions, and 
    anticipated benefits arising from revisions. After the formal 
    presentation of 30 minutes or less, attendees will have the opportunity 
    to ask Western staff questions related to proposed revisions. Once all 
    questions are asked and individually responded to by Western, the 
    public comment forum will begin and interested parties will have the 
    opportunity to comment on Western's proposed revisions. A court 
    reporter will record the proceedings, and a transcript will be 
    prepared. The public will be able to review the transcript at Western's 
    offices, or may order a personal copy from the court reporter.
        Comments from the public comment forum will be considered along 
    with all other comments received prior to 5 p.m. Mountain Standard Time 
    on December 30, 1999. Comments will be incorporated into the final rule 
    as appropriate, and all comments will be addressed upon publication of 
    the final rule in the Federal Register.
    
    IV. Procedural Requirements
    
    A. Executive Order 12866
    
        Western has an exemption from centralized regulatory review under 
    Executive Order 12866; accordingly, no clearance of this notice by the 
    Office of Management and Budget (OMB) is required.
    
    B. Review Under the Regulatory Flexibility Act
    
        The Regulatory Flexibility Act of 1980, 5 U.S.C. 601, et seq., 
    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's 
    Administrator certifies that this proposed rule will have no 
    significant adverse impact on a substantial number of small entities 
    because the proposed revisions to these regulations reduce paperwork 
    and financial and other burdens, as well as reporting redundancies for 
    small entities.
    
    C. 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 OMB for the collection of 
    customer information in this rule, under control number 1910-1200.
    
    D. Review Under the National Environmental Policy Act
    
        Western prepared an environmental impact statement and record of 
    decision pursuant to the National Environmental Policy Act of 1969 
    (NEPA) for the Energy Planning and Management Program, which 
    established the existing IRP requirements for Western power customers. 
    This met the requirements of NEPA, 42 U.S.C. 4321, et seq., the Council 
    on Environmental Quality Regulations for implementing NEPA (40 CFR 
    parts 1500-1508), and the DOE NEPA Implementing Procedures and 
    Guidelines (10 CFR part 1021). Since the proposed revisions would 
    modify those IRP requirements, Western is conducting a review to 
    determine if a supplemental environmental analysis is required.
    
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    E. Review Under Executive Order 13132
    
        Executive Order 13132 (64 FR 43255, August 4, 1999) imposes certain 
    requirements on agencies formulating and implementing policies or 
    regulations that preempt State law or that have federalism 
    implications. Agencies are required to examine the constitutional and 
    statutory authority supporting any action that would limit the 
    policymaking discretion of the States and carefully assess the need for 
    such actions. Western has examined this rule and determined that it 
    does not preempt State law and does not have a substantial direct 
    effect on the States, on the relationship between the national 
    government and the States, or on the distribution of power and 
    responsibilities among the various levels of government. No further 
    action is required by Executive Order 13132.
    
    F. Review Under the Unfunded Mandates Reform Act of 1995
    
        Title II of the Unfunded Mandates Reform Act of 1995 requires each 
    agency to assess the effects of Federal regulatory action on State, 
    local, and Tribal governments and the private sector. Western has 
    determined that this proposed regulatory action does not impose an 
    additional Federal mandate on State, local, or Tribal governments or on 
    the private sector.
    
    G. Review Under Executive Order 12988
    
        With respect to the review of existing regulations and the 
    promulgation of new regulations, section 3(a) of Executive Order 12988, 
    ``Civil Justice Reform'' (61 FR 4729, February 7, 1996), imposed on 
    Executive agencies the general duty to adhere to the following 
    requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
    regulations to minimize litigation; and (3) provide a clear legal 
    standard for affected conduct rather than a general standard and 
    promote simplification and burden reduction. With regard to the review 
    required by section 3(a), section 3(b) of Executive Order 12988 
    specifically requires that Executive agencies make every reasonable 
    effort to ensure that the regulation: (1) Clearly specifies the 
    preemptive effect, if any; (2) clearly specifies any effect on existing 
    Federal law or regulation; (3) provides a clear legal standard for 
    affected conduct while promoting simplification and burden reduction; 
    (4) specifies the retroactive effect, if any; (5) adequately defines 
    key terms; and (6) addresses other important issues affecting clarity 
    and general draftsmanship under any guidelines issued by the Attorney 
    General. Section 3(c) of Executive Order 12988 requires Executive 
    agencies to review regulations in light of applicable standards in 
    section 3(a) and 3(b) to determine whether they are met or if it is 
    unreasonable to meet one or more of them. Western has completed the 
    required review and determined that, to the extent permitted by law, 
    the proposed regulations meet the relevant standards of Executive Order 
    12988.
    
    H. Treasury and General Government Appropriations Act, 1999
    
        Section 654 of the Treasury and General Government Appropriations 
    Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
    Policymaking Assessment for any proposed rule that may affect family 
    well-being. Today's proposal would not have any impact on the autonomy 
    or integrity of the family as an institution. Accordingly, Western has 
    concluded that it is not necessary to prepare a Family Policymaking 
    Assessment.
    
    I. Review Under Executive Order 13084
    
        Under Executive Order 13084 (Consultation and Coordination with 
    Indian Tribal Governments), Western may not issue a discretionary rule 
    that significantly or uniquely affects Indian tribal governments and 
    imposes substantial direct compliance costs. The incremental amendments 
    involved in this proposed rulemaking would not have such effects. 
    Accordingly, Executive Order 13084 does not apply to this rulemaking.
    
    List of Subjects in 10 CFR part 905
    
        Electric power, Electric utilities, Energy, Energy conservation, 
    Hydroelectric power, Reporting and recordkeeping requirements.
    
        Issued in Washington, D.C. on November 3, 1999.
    Michael S. Hacskaylo,
    Administrator.
        For the reasons set forth in the preamble, 10 CFR part 905 is 
    proposed to be amended as set forth below.
    
    PART 905--ENERGY PLANNING AND MANAGEMENT PROGRAM
    
        1. The authority citation continues to read as follows:
    
        Authority: 42 U.S.C. 7152 and 7191; 32 Stat. 388, as amended; 
    and 42 U.S.C. 7275-7276c.
    
        2. Subparts A and B are revised to read as follows:
    
    Subpart A--General Provisions
    
    Sec.
    905.1  What are the purposes of this part?
    905.2  What are the key definitions of this part?
    
    Subpart B--Integrated Resource Planning
    
    905.10  Who must comply with this part?
    905.11  What must an IRP include?
    905.12  How must IRPs be submitted?
    905.13  When must IRPs be submitted?
    905.14  What are the criteria for Western's approval of IRPs?
    905.15  What are annual IRP progress reports?
    905.16  What are the requirements for the small customer plan 
    alternative?
    905.17  What are the requirements for the minimum investment report 
    alternative?
    905.18  What are the requirements for the public benefits report 
    alternative?
    905.19  What are the requirements for the energy efficiency and/or 
    renewable energy report (EE/RE report) alternative?
    905.20  How are plans and reports processed?
    905.21  When are customers in noncompliance with this rule, and how 
    does Western ensure compliance?
    905.22  What is the administrative appeal process?
    905.23  How does Western periodically review plans and reports?
    905.24  What are the opportunities for using the Freedom of 
    Information Act to request data?
    905.25  How often is this program reviewed?
    
    Subpart A--General Provisions
    
    
    Sec. 905.1  What are the purposes of this part?
    
        The purposes of this part are to meet the objectives of section 114 
    of the Energy Policy Act of 1992 (EPAct) and to extend the long-term 
    firm power resource commitments while supporting customer integrated 
    resource planning (IRP), energy efficiency and conservation, and the 
    use of renewable energy. Subpart B allows customers of the Western Area 
    Power Administration (Western) to meet the objectives of section 114 of 
    EPAct through integrated resource planning or by other means, such as 
    attaining a minimum level of investment in energy efficiency and/or 
    renewable energy, collecting a charge to support defined public 
    benefits, or complying with a mandated energy efficiency and/or 
    renewable energy reporting requirement.
    
    
    Sec. 905.2  What are the key definitions of this part?
    
        Administrator means the Administrator of Western.
        Customer means any entity that purchases firm capacity, with or 
    without energy, from Western under a long-term firm power contract. The 
    term also includes a member-based association (MBA) and its 
    distribution
    
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    or user members that receive direct benefit from Western's power, 
    regardless of which holds the contract with Western.
        Energy efficiency and/or renewable energy (EE/RE) report means the 
    report resulting from a mandate to conduct energy efficiency and/or 
    renewable energy activities imposed by a State, Tribal, or the Federal 
    Government upon a State, Tribal, or Federal end-use customer within its 
    jurisdiction.
        Integrated resource planning means a planning process for new 
    energy resources that evaluates the full range of alternatives, 
    including new generating capacity, power purchases, energy conservation 
    and efficiency, cogeneration and district heating and cooling 
    applications, and renewable energy resources, in order to provide 
    adequate and reliable service to a customer's electric consumers.
        Integrated resource planning cooperative (IRP cooperative) means a 
    group of Western's customers and/or their distribution or user members 
    that Western has approved for IRP cooperative status.
        Member-based association (MBA) means:
        (1) An entity composed of utilities or user members, or
        (2) An entity that acts as an agent for, or subcontracts with, but 
    does not assume power supply responsibility for its principals or 
    subcontractors, who are its members.
        Minimum investment report means the report resulting from a 
    mandatory minimum level of financial or resource investment in energy 
    efficiency initiatives and/or renewable energy activities, such as 
    investment of a set minimum percentage of the utility's gross revenues 
    in renewable resources, which is imposed by State, Tribal, or Federal 
    law upon a utility or other entity under its jurisdiction.
        Public benefits charge means a mandatory financial charge imposed 
    by State, Tribal, or Federal law upon a utility under its jurisdiction 
    to support one or more of the following: energy efficiency, 
    conservation, or demand-side management; renewable energy; efficiency 
    or alternative energy-related research and development; low-income 
    energy assistance; and/or other programs defined by applicable State, 
    Tribal, or Federal law. This term is also known as a public goods or 
    system benefit charge in the utility industry.
        Region means a regional office or management center of Western: the 
    Desert Southwest Customer Service Region, the Rocky Mountain Customer 
    Service Region, the Sierra Nevada Customer Service Region, the Upper 
    Great Plains Customer Service Region, or the Colorado River Storage 
    Project Management Center.
        Renewable energy means any source of electricity that is self-
    renewing, including plant-based biomass, waste-based biomass, 
    geothermal, hydropower, ocean thermal, solar (active and passive), and 
    wind. This term is also known as renewable resources in the utility 
    industry.
        Small customer means a utility customer with total annual sales and 
    usage of 25 gigawatthours (GWh) or less, as averaged over the previous 
    5 years; or any end-use customer.
        Western means the Western Area Power Administration.
    
    Subpart B--Integrated Resource Planning
    
    
    Sec. 905.10  Who must comply with this part?
    
        (a) Integrated resource plans (IRP). Each customer of Western must 
    address its power resource needs in an IRP prepared and submitted to 
    Western as described in this part.
        (b) Alternatives to IRP. Alternatively, customers of Western may 
    submit a small customer plan, minimum investment report, public 
    benefits report, or EE/RE report as described in Secs. 905.16 through 
    905.19 of this subpart.
        (c) Rural Utility Service and state utility commission reports. For 
    customers subject to IRP filings or other electrical resource-use 
    reports from the Rural Utilities Service or a state utility commission, 
    there is nothing in this part that would require a customer to take any 
    action inconsistent with those requirements.
    
    
    Sec. 905.11  What must an IRP include?
    
        (a) General. An integrated resource plan supports customer-
    developed goals and schedules. The plan must take into account 
    necessary features for system operation, such as diversity, 
    reliability, dispatchability, and other factors of risk; must take into 
    account the ability to verify energy savings achieved through energy 
    efficiency and the projected durability of such savings measured over 
    time; and must treat demand and supply resources on a consistent and 
    integrated basis.
        (b) IRP criteria. IRPs must consider electrical energy resource 
    needs and may consider, at the customer's option, water, natural gas, 
    and other energy resources. Each IRP submitted to Western must include:
        (1) Identification of resource options. Identification and 
    comparison of all practicable energy efficiency and energy supply 
    resource options. This is an assessment and comparison of existing and 
    future supply- and demand-side resource options available to a customer 
    based upon its size, type, resource needs, geographic area, and 
    competitive situation. Resource options evaluated by the specific 
    customer must be identified. The options evaluated should relate to the 
    resource situation unique to each Western customer as determined by 
    profile data (such as service area, geographical characteristics, 
    customer mix, historical loads, projected growth, existing system data, 
    rates, and financial information) and load forecasts. Specific details 
    of the customer's resource comparison need not be provided in the IRP 
    itself. They must, however, be made available to Western upon request.
        (i) Supply-side options include, but are not limited to, purchased 
    power contracts and conventional and renewable generation options.
        (ii) Demand-side options alter the customer's use pattern in a 
    manner that provides for an improved combination of energy services to 
    the customer and the ultimate consumer.
        (iii) Considerations that may be used to develop the potential 
    options include cost, market potential, consumer preferences, 
    environmental impacts, demand or energy impacts, implementation issues, 
    revenue impacts, and commercial availability.
        (iv) The IRP discussion of resource options must describe the 
    options chosen by the customer. The IRP may strike a reasonable balance 
    among the applicable resource evaluation factors. It should clearly 
    demonstrate that decisions were based on a reasonable analysis of 
    resource options and environmental effects, were based on public input, 
    and/or were required by State, Tribal, or Federal mandates.
        (2) Action plan. An IRP must include an action plan describing 
    specific actions the customer will take to implement its IRP.
        (i) The IRP must state the time period that the action plan covers, 
    and the action plan must be updated and resubmitted to Western when 
    this time period expires. The customer may submit a revised action plan 
    with the annual IRP progress report discussed in Sec. 905.15.
        (ii) For those customers not experiencing or anticipating load 
    growth, the action plan requirement for the IRP may be satisfied by a 
    discussion of current actions and procedures in place to periodically 
    reevaluate the possible future need for new resources. The action plan 
    must include a summary of:
    
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        (A) Actions the customer expects to take in accomplishing the goals 
    identified in the IRP;
        (B) Milestones to evaluate accomplishment of those actions during 
    implementation; and
        (C) Estimated energy and capacity benefits for each action planned.
        (3) Environmental effects. The customer must minimize adverse 
    environmental effects of new resource acquisitions and document these 
    efforts in the IRP. Customers are neither precluded from nor required 
    to include a quantitative analysis of environmental externalities as 
    part of the IRP process. IRPs must include a qualitative analysis of 
    environmental effects in summary format.
        (4) Public participation. The customer must provide for full public 
    participation in the preparation and development of an IRP (or any 
    revision or amendment of an IRP). The IRP must include a brief 
    description of public involvement activities, including how the 
    customer gathered information from the public, identified public 
    concerns, shared information with the public, and responded to public 
    comments. Customers must make additional documentation identifying or 
    supporting the full public process available to Western upon request.
        (i) As part of the public participation process, the governing body 
    of an MBA and each MBA member (such as a board of directors or city 
    council) must approve the IRP, confirming that all requirements have 
    been met. To indicate approval, a responsible official must sign the 
    IRP submitted to Western or the customer must document passage of an 
    approval resolution by the appropriate governing body included or 
    referred to in the IRP.
        (ii) For Western customers that do not purchase electricity for 
    resale, such as some State, Tribal, and Federal agencies, the customer 
    can satisfy public participation if there is review and concurrence by 
    a top management official with resource acquisition responsibility. The 
    customer must note this concurrence in the IRP.
        (5) Load forecasting. An IRP must include a statement that load 
    forecasting was conducted. Load forecasting should include data that 
    reflects the size, type, resource conditions, and demographic nature of 
    the customer using an accepted load forecasting methodology, including 
    but not limited to the time series, end-use, and econometric methods. 
    The customer must make the load forecasting data available to Western 
    upon request.
        (6) Measurement strategies. The IRP must include a brief 
    description of measurement strategies for options identified in the IRP 
    in order to determine whether objectives in the IRP are being met. 
    These validation methods must include identification of the baseline 
    from which a customer will measure the benefits of its IRP 
    implementation. A reasonable balance may be struck between the cost of 
    data collection and the benefits resulting from obtaining exact 
    information. Customers must make performance validation and evaluation 
    data available to Western upon request.
    
    
    Sec. 905.12  How must IRPs be submitted?
    
        (a) Number of IRPs submitted. Only one IRP is required per 
    customer, regardless of the number of long-term firm power contracts 
    between the customer and Western.
        (b) Method of submitting IRPs. Customers must submit IRPs to 
    Western under one of the following options:
        (1) Customers may submit IRPs individually.
        (2) MBAs may submit individual IRPs for each of their members or 
    submit one IRP on behalf of all or some of their members. An IRP 
    submitted by an MBA must specify the responsibilities and participation 
    levels of individual members and the MBA. Any member of an MBA may 
    submit an individual IRP to Western instead of inclusion in an MBA IRP.
        (3) Customers may submit IRPs as IRP cooperatives when previously 
    approved by Western.
        (c) Alternatives to submitting individual IRPs. Customers that 
    Western approves for submittal of small customer plans, minimum 
    investment reports, public benefits reports, or EE/RE reports may 
    substitute the applicable plan or report instead of an IRP. Each 
    customer that intends to seek approval for IRP cooperative, small 
    customer, minimum investment report, public benefits report, or EE/RE 
    report status must provide written notification to Western. A new 
    customer must provide this notification to the Western Regional Manager 
    of the Region in which the customer is located within 30 days from the 
    time it becomes a customer. Any customer may resubmit an IRP or notify 
    Western of its plan to change its compliance method at any time so long 
    as there is no period of noncompliance between this part and Western's 
    IRP regulations in effect before [effective date of the final rule] 
    (and contained in the 10 CFR, part 500 to end, edition revised as of 
    January 1, 1999).
    
    
    Sec. 905.13  When must IRPs be submitted?
    
        (a) Submitting the initial IRP. Except as provided in paragraph (d) 
    of this section, customers that have not previously submitted IRPs must 
    submit their initial IRP to the appropriate Regional Manager no later 
    than 1 year after [the effective date of the final rule], or after 
    becoming a customer, whichever is later. Customers already complying 
    with Western's IRP regulations in effect before [effective date of the 
    final rule] (and contained in the 10 CFR, part 500 to end, edition 
    revised as of January 1, 1999) must maintain their current submission 
    and resubmission schedules.
        (b) Western's review of IRPs. If an IRP submittal is insufficient, 
    Western will provide a notice of deficiencies to the entity that 
    submitted the IRP. Western, working together with the entity, will 
    determine the time allowable for resubmitting the IRP. However, the 
    time allowed for resubmittal will not be greater than 9 months after 
    the date of the disapproval, unless otherwise provided by contract 
    language in effect as of [the effective date of the final rule].
        (c) Updates and amendments to IRPs. Customers must submit updated 
    IRPs to the appropriate Regional Manager every 5 years after Western's 
    approval of the initial IRP. Customers may submit amendments and 
    revisions to IRPs at any time.
        (d) IRP cooperatives. Customers that have geographic, resource 
    supply, and other similarities may join together and request, in 
    writing, Western's approval to become an IRP cooperative. Western will 
    respond to IRP cooperative status requests within 30 days of receipt of 
    the request. If Western disapproves a request for IRP cooperative 
    status, the requesting participants must maintain their currently 
    applicable integrated resource or small customer plans, or submit their 
    initial IRPs no later than 1 year after the date of the letter of 
    disapproval. Western's approval of IRP cooperative status will not be 
    based on any potential participant's contractual status with Western. 
    Each IRP cooperative must submit an IRP for its participants within 18 
    months after Western's approval of IRP cooperative status.
    
    
    Sec. 905.14  What are the criteria for Western's approval of IRPs?
    
        (a) Approval criteria. Western will approve plans and reports based 
    upon:
        (1) Whether the plan or report satisfactorily addresses the 
    criteria in this part; and
        (2) The reasonableness of the plan or report given the size, type, 
    resource needs, geographic area, and competitive situation of the 
    customer.
        (b) Review of resource choices. Western will review resource 
    choices in
    
    [[Page 62609]]
    
    accordance with section 114 of EPAct and this subpart. Western will 
    disapprove IRPs if resource choices do not meet the reasonableness test 
    in paragraph (a)(2) of this section and the provisions of section 114 
    of EPAct.
        (c) Accepting IRPs under other initiatives. If a customer or group 
    of customers implements integrated resource planning under a program 
    responding to other Federal, Tribal, or State initiatives, Western will 
    accept and approve the plan as long as it substantially complies with 
    the requirements of this subpart.
        (d) Water-based plans and reports. In evaluating a plan or report, 
    Western will consider water planning, efficiency improvements, and 
    conservation in the same manner it considers energy planning and 
    efficiencies. Customers that provide water utility services and 
    customers that service irrigation load as part of their overall load 
    may include water conservation activities in the plan or report. To the 
    extent practicable, customers should convert their water savings to 
    energy values.
    
    
    Sec. 905.15  What are annual IRP progress reports?
    
        Customers must submit IRP progress reports each year within 30 days 
    of the anniversary date of the approval of the currently applicable 
    IRP. The reports must describe the customer's accomplishments achieved 
    under the action plan, including projected goals and implementation 
    schedules, and energy and capacity benefits and renewable energy 
    developments achieved as compared to those anticipated. Western prefers 
    measured values, but will accept reasonable estimates if measurement is 
    infeasible or not cost-effective. Instead of a separate progress 
    report, the customer may use any other annual report that the customer 
    submits to Western or another entity, at the customer's discretion, if 
    that report contains all required data for the previous full year and 
    is submitted within 30 days of the approval anniversary date of the 
    currently applicable IRP. With Western's approval, customers may submit 
    reports outside of the 30-day anniversary date window.
    
    
    Sec. 905.16  What are the requirements for the small customer plan 
    alternative?
    
        (a) Requesting small customer status. Small customers may submit a 
    request to prepare a small customer plan instead of an IRP. Requests 
    for small customer status from electric utilities must include data on 
    total annual energy sales and usage for the 5 years prior to the 
    request. Western will average this data to determine overall annual 
    energy sales and usage so that uncontrollable events, such as extreme 
    weather, do not distort levelized energy sales and usage. Requests from 
    end-use customers must only document that the customer does not 
    purchase electricity for resale. Western will respond to small customer 
    status requests within 30 days of receipt of the request. If Western 
    disapproves a request, the customer must maintain its currently 
    applicable IRP, or submit its initial IRP no later than 1 year after 
    the date of the letter of disapproval. Alternatively, the customer may 
    submit a request for minimum investment report, public benefits report, 
    or EE/RE report status, as appropriate.
        (b) Small customer plan contents. Small customer plans must:
        (1) Consider all reasonable opportunities to meet future energy 
    service requirements using demand-side management techniques, new 
    renewable resources, and other programs that provide retail consumers 
    with electricity at reasonable cost;
        (2) Minimize, to the extent practicable, adverse environmental 
    effects; and
        (3) Present in summary form the following information:
        (i) Customer name, address, phone number, e-mail and Website if 
    applicable, and contact person;
        (ii) Type of customer;
        (iii) Current energy and demand profiles and data on total annual 
    energy sales and usage for the previous 5 years for utility customers, 
    or current energy and demand use for end-use customers;
        (iv) Future energy services projections;
        (v) How paragraphs (b)(1) and (b)(2) of this section were 
    considered; and
        (vi) Actions to be implemented over the customer's planning 
    timeframe.
        (c) When to submit small customer plans. Small customers must 
    submit the first small customer plan to the appropriate Western 
    Regional Manager within 1 year after Western's approval of the request 
    for small customer status. Small customers must submit in writing a 
    small customer plan every 5 years.
        (d) Maintaining small customer status.
        (1) Every year on the anniversary of Western's approval of the 
    plan, small customers must submit a letter to Western verifying that 
    either their annual energy sales and usage is 25 GWh or less averaged 
    over the previous 5 years, or they continue to be end-use customers. 
    The letter must also identify their achievements against their targeted 
    action plans, as well as the revised summary of actions if the previous 
    summary of actions has expired.
        (2) Western will use the letter for overall program evaluation and 
    comparison with the customer's plan, and for verification of continued 
    small customer status. Customers may submit annual update letters 
    outside of the anniversary date if previously agreed to by Western so 
    long as the letter contains all required data for the previous full 
    year.
        (e) Losing eligibility for small customer status.
        (1) A customer ceases to be a small customer if it:
        (i) Is a utility and exceeds total annual energy sales and usage of 
    25 GWh, as averaged over the previous 5 years; or
        (ii) Is no longer an end-use customer.
        (2) Western will work with a customer who loses small customer 
    status to develop an appropriate schedule for submittal of an IRP or 
    other report required under this subpart.
    
    
    Sec. 905.17  What are the requirements for the minimum investment 
    report alternative?
    
        (a) Request to submit the minimum investment report. Customers may 
    submit a request to prepare a minimum investment report instead of an 
    IRP. Requests to submit minimum investment reports must include data 
    on:
        (1) The source of the minimum investment requirement (number, 
    title, date, and jurisdiction of law);
        (2) The initial, annual, and other reporting requirement(s) of the 
    mandate, if any; and
        (3) The mandated minimum level of investment for energy efficiency 
    and/or renewable energy.
        (b) Minimum investment requirement. The minimum investment must be 
    a mandatory set percentage of customer gross revenues or other specific 
    minimum investment in energy efficiency and/or renewable energy 
    mandated by a State, Tribal, or Federal Government with jurisdictional 
    authority.
        (c) Western's response to minimum investment report requests. 
    Western will respond to requests to accept minimum investment reports 
    within 30 days of receipt of the request. If Western disapproves a 
    request to allow use of the minimum investment report, the customer 
    must maintain its currently applicable IRP or small customer plan, or 
    submit its initial IRP no later than 1 year after the date of the 
    letter of disapproval. Alternatively, the customer may submit a request 
    for small customer plan, public benefits report, or EE/RE report 
    status, as appropriate.
        (d) Minimum investment report contents. Reports documenting 
    compliance with a minimum level of
    
    [[Page 62610]]
    
    investment in energy efficiency and/or renewable energy must include:
        (1) Customer name, address, phone number, email and Website if 
    applicable, and contact person;
        (2) Authority or requirement to undertake a minimum investment, 
    including the source of the minimum investment requirement (number, 
    title, date, and jurisdiction of law); and
        (3) A description of the minimum investment, including:
        (i) Minimum percentage or other minimum requirement for energy 
    efficiency and/or renewable energy;
        (ii) Actual or estimated energy and/or capacity savings resulting 
    from minimum investments in energy efficiency, if known;
        (iii) Actual or estimated energy and/or capacity resulting from 
    minimum investments in renewable energy, if known; and
        (iv) A description of the energy efficiency and/or renewable energy 
    activities to be undertaken over the next 2 years as a result of the 
    requirement for minimum investment in energy efficiency and/or 
    renewable energy, if known.
        (e) Minimum investment report approval. Western will approve the 
    minimum investment report when it meets the requirements in paragraph 
    (d) of this section.
        (f) When to submit the minimum investment report. The customer must 
    submit the first minimum investment report to the appropriate Western 
    Regional Manager within 1 year after Western's approval of the request 
    to accept the minimum investment report. Customers choosing this option 
    must maintain IRP or small customer plan compliance with Western's IRP 
    regulations in effect before [effective date of the final rule] (and 
    contained in the 10 CFR, part 500 to end, edition revised as of January 
    1, 1999) including annual progress reports or update letters, until 
    submitting the first minimum investment report to ensure there is no 
    gap in compliance with section 114 of EPAct.
        (g) Maintaining minimum investment reports. (1) Every year on the 
    anniversary of Western's approval of the first minimum investment 
    report, customers choosing this option must submit a letter to Western 
    verifying that they remain in compliance with the minimum investment 
    requirement. The letter must also contain summary information 
    identifying energy and capacity savings associated with minimum 
    investments in energy efficiency, if known, and energy and capacity 
    associated with minimum investments in renewable energy, if known.
        (2) Western will use the letter for overall program evaluation and 
    to ensure customers remain in compliance. Customers may submit letters 
    outside of the anniversary date if previously agreed to by Western if 
    the letter contains all required data for the previous full year. 
    Instead of a separate letter, a customer choosing this option may 
    submit the State, Tribal, or Federal required annual report documenting 
    the minimum investment and associated energy efficiency and/or 
    renewable energy savings and/or use, if known.
        (h) Loss of eligibility to submit the minimum investment report. 
    (1) A customer ceases to be eligible to submit a minimum investment 
    report if:
        (i) A State, Tribal, or Federal mandate no longer applies to the 
    customer, or
        (ii) The customer does not comply with the minimum level of 
    investment in applicable State, Tribal, or Federal law.
        (2) Western will work with a customer that is no longer eligible to 
    submit a minimum investment report to develop an appropriate schedule 
    for submittal of an IRP or other report required under this subpart.
    
    
    Sec. 905.18  What are the requirements for the public benefits report 
    alternative?
    
        (a) Requests to submit a public benefits report. Customers may 
    submit a request to prepare a public benefits report instead of an IRP. 
    Requests to submit public benefits reports must include data on:
        (1) The source of the public benefits requirement (number, title, 
    date, and jurisdiction of law);
        (2) The initial, annual, and other reporting requirement(s) of the 
    program, if any; and
        (3) The required public benefits charge, including charges to be 
    collected for and spent on energy efficiency, conservation, or demand-
    side management; renewable energy; efficiency and alternative energy-
    related research and development; low-income energy assistance; and any 
    other applicable public benefits category.
        (b) Public benefits requirement. Participation in a public benefits 
    program requires either a mandatory set percentage of customer gross 
    revenues or other specific charges to be applied toward the programs as 
    determined by the applicable State, Tribal, or Federal authority. The 
    revenues from the public benefits charge may be expended directly by 
    the customer, or by another entity on behalf of the customer as 
    determined by the applicable State, Tribal, or Federal authority.
        (c) Western's response to public benefits report requests. Western 
    will respond to requests to accept a public benefits report within 30 
    days of receipt of the request. If Western disapproves a request to 
    allow use of the public benefits report, the requesting customer must 
    maintain its currently applicable IRP or small customer plan, or submit 
    its initial IRP no later than 1 year after the date of the letter of 
    disapproval. Alternatively, the customer may submit a request for small 
    customer plan, minimum investment report, or EE/RE report status, as 
    appropriate.
        (d) Public benefits report contents. Reports documenting 
    participation in a public benefits program must include:
        (1) Customer name, address, phone number, email and Website if 
    applicable, and contact person;
        (2) Authority or requirement to participate in a public benefits 
    program, including the source of the public benefits requirement 
    (number, title, date, and jurisdiction of law); and
        (3) A description of the public benefits program, including:
        (i) Overall public benefits charge, whether minimum investment or 
    other set charge, including charges to be collected for and spent on 
    energy efficiency, conservation, or demand-side management; renewable 
    energy; efficiency or alternative energy-related research and 
    development; low-income energy assistance; and any other applicable 
    public benefits categories;
        (ii) Actual or estimated energy and/or capacity savings associated 
    with energy efficiency and resulting from participation in the public 
    benefits program, if known;
        (iii) Actual or estimated energy and/or capacity associated with 
    renewable energy and resulting from participation in the public 
    benefits program, if known;
        (iv) A description of the energy efficiency and renewable energy 
    activities to be undertaken by the customer over the next 2 years as a 
    result of participation in the public benefits program, if known.
        (e) Public benefits report approval. Western will approve the 
    public benefits report when it meets the requirements in paragraph (d) 
    of this section.
        (f) When to submit the public benefits report. The customer must 
    submit the first public benefits report to the appropriate Western 
    Regional Manager within 1 year after Western's approval of the request 
    to prepare the public benefits report. Customers choosing this option 
    must maintain IRP or small customer plan compliance with Western's IRP 
    regulations in effect
    
    [[Page 62611]]
    
    before [effective date of the final rule] (and contained in the 10 CFR, 
    part 500 to end, edition revised as of January 1, 1999), including 
    annual progress reports or update letters, until submitting the first 
    public benefits report to ensure there is no gap in compliance with 
    section 114 of EPAct.
        (g) Maintaining the public benefits report. (1) Every year on the 
    anniversary of Western's approval of the first public benefits report, 
    customers choosing this option must submit a letter to Western:
        (i) Verifying that they remain in compliance with the public 
    benefits program; and
        (ii) Identifying energy and capacity savings associated with energy 
    efficiency, and energy and capacity associated with renewable energy, 
    for the customer's public benefits contribution, if known.
        (2) Western will use the letter for overall program evaluation and 
    to ensure customers remain in compliance. Customers may submit letters 
    outside of the anniversary date if previously agreed to by Western if 
    the letter contains all required data for the previous full year. 
    Instead of a separate letter, a customer choosing this option may 
    submit the State, Tribal, or Federal required annual report documenting 
    the public benefits charge and associated customer energy efficiency 
    and/or renewable energy savings and/or use, if known.
        (h) Loss of eligibility to submit the public benefits report. (1) A 
    customer ceases to be eligible to submit a public benefits report if:
        (i) A State, Tribal, or Federal mandate no longer applies to the 
    customer, or
        (ii) The customer does not comply with the public benefits 
    requirement in applicable State, Tribal, or Federal law.
        (2) Western will work with a customer that is no longer eligible to 
    submit a public benefits report to develop an appropriate schedule for 
    submittal of an IRP or other report required by this subpart.
    
    
    Sec. 905.19  What are the requirements for the energy efficiency and/or 
    renewable energy report (EE/RE report) alternative?
    
        (a) Requests to submit an EE/RE report. Customers may submit a 
    request to prepare an EE/RE report instead of an IRP. Requests to 
    submit EE/RE reports must include data on:
        (1) The source of the EE/RE reporting requirement (number, title, 
    date, and jurisdiction of law);
        (2) The initial, annual, and other reporting requirement(s) of the 
    report; and
        (3) A summary outline of the EE/RE report's required data or 
    components, including any requirements for documenting customer energy 
    efficiency and renewable energy activities.
        (b) EE/RE report requirement. The EE/RE report may include only 
    electrical resource use and subsequent energy efficiency and/or 
    renewable energy activities, or may additionally include other utility 
    resource information, such as water and natural gas data. At a minimum, 
    the EE/RE report must annually document energy efficiency and/or 
    renewable energy activities undertaken by the customer.
        (c) Western's response to EE/RE report requests. Western will 
    respond to requests to accept EE/RE reports within 30 days of receipt 
    of the request. If Western disapproves a request to allow use of the 
    EE/RE report, the customer must maintain its currently applicable IRP 
    or small customer plan, or submit its initial IRP no later than 1 year 
    after the date of the letter of disapproval. Alternatively, the 
    customer may submit a request for small customer plan, minimum 
    investment report, or public benefits report status, as appropriate, 
    within 30 days after the date of the letter of disapproval.
        (d) EE/RE report contents. EE/RE reports must include:
        (1) Customer name, address, phone number, email and Website if 
    applicable, and contact person;
        (2) Authority or requirement to complete the EE/RE report, 
    including the source of the requirement (number, title, date, and 
    jurisdiction of law); and
        (3) A description of the customer's required energy efficiency and/
    or renewable energy activities, including:
        (i) Level of investment or expenditure in energy efficiency and/or 
    renewable energy, and quantifiable energy savings or use goals, if 
    defined by the EE/RE reporting requirement;
        (ii) Actual or estimated energy and/or capacity savings, if any, 
    associated with energy efficiency and resulting from the EE/RE 
    reporting requirement;
        (iii) Actual or estimated energy and/or capacity, if any, 
    associated with renewable energy and resulting from the EE/RE reporting 
    requirement;
        (iv) A description of the energy efficiency and/or renewable energy 
    activities to be undertaken over the next 2 years as a result of the 
    EE/RE reporting requirement.
        (e) EE/RE report approval. Western will approve the EE/RE report 
    when the report meets the requirements in paragraph (d) of this 
    section.
        (f) When to submit the EE/RE report. The customer must submit the 
    first EE/RE report to the appropriate Western Regional Manager within 1 
    year after Western's approval of the request to accept the EE/RE 
    report. Customers choosing this option must maintain IRP or small 
    customer plan compliance with Western's IRP regulations in effect 
    before [effective date of the final rule] (and contained in the 10 CFR, 
    part 500 to end, edition revised as of January 1, 1999), including 
    annual progress reports or update letters, until submitting the first 
    EE/RE report to ensure there is no gap in compliance with section 114 
    of EPAct.
        (g) Maintaining EE/RE reports.
        (1) Every year on the anniversary of Western's approval of the 
    first EE/RE report, customers choosing this option must submit an 
    annual EE/RE report to Western. The report must contain summary 
    information identifying customer energy and capacity savings associated 
    with energy efficiency, if any, and customer energy and capacity 
    associated with renewable energy, if any. If this information is not 
    contained in the EE/RE report, the customer must submit this 
    information with the report as a separate letter. The letter must also 
    verify that the customer remains in compliance with the EE/RE reporting 
    requirement.
        (2) Customers may submit annual EE/RE reports outside of the 
    anniversary date if previously agreed to by Western if the report 
    contains all required data for the previous full year.
        (h) Loss of eligibility to submit the EE/RE report. (1) A customer 
    ceases to be eligible to submit a EE/RE report if:
        (i) The EE/RE reporting requirement no longer applies to the 
    customer, or
        (ii) The customer does not comply with the EE/RE reporting 
    requirements in applicable State, Tribal, or Federal law.
        (2) Western will work with a customer that is no longer eligible to 
    submit an EE/RE report to develop an appropriate schedule for submittal 
    of an IRP or other report required under this subpart.
    
    
    Sec. 905.20  How are plans and reports processed?
    
        Western will review all plans and reports submitted under this 
    subpart and notify the submitting entity of the plan's or report's 
    acceptability within 120 days after receipt.
    
    
    Sec. 905.21  When are customers in noncompliance with this part, and 
    how does Western ensure compliance?
    
        (a) Penalties for noncompliance. Western will impose a penalty on 
    the long-term firm power customer for failure to submit or resubmit an 
    IRP and action plan, small customer plan, minimum investment report, 
    public benefits report, or EE/RE report as required by this subpart. 
    Western will
    
    [[Page 62612]]
    
    also impose a penalty when the customer's activities are not consistent 
    with the applicable plan or report unless Western finds that a good 
    faith effort has been made to comply with the approved plan or report.
        (b) Good faith effort to comply. If it appears that a customer's 
    activities may be inconsistent with the applicable plan or report, 
    Western will notify the customer and offer the customer 30 days to 
    provide evidence of its good faith effort to comply. If the customer 
    does not correct the specified deficiency or submit such evidence, or 
    if Western finds, after receipt of information from the customer, that 
    a good faith effort has not been made, Western will impose a penalty.
        (c) Written notification of penalty. Western must provide written 
    notice of the imposition of a penalty to the customer, and to the MBA 
    or IRP cooperative when applicable. The notice will specify the reasons 
    for imposition of the penalty.
        (d) Imposition of penalty. (1) Beginning with the first full 
    billing period following the notice specified in paragraph (c) of this 
    section, Western will impose a surcharge of 10 percent of the monthly 
    power charges until the deficiency specified in the notice is cured, or 
    until 12 months pass. However, Western will not immediately impose a 
    penalty if the customer or its MBA or IRP cooperative requests 
    reconsideration by filing a written appeal under Sec. 905.22.
        (2) The surcharge increases to 20 percent for the second 12 months 
    and to 30 percent per year thereafter until the deficiency is cured.
        (3) After the first 12 months of imposition of the surcharge and 
    instead of imposing any further surcharge, Western may impose a penalty 
    that would reduce the resource delivered under a customer's long-term 
    firm power contract(s) by 10 percent. Western may impose this resource 
    reduction either:
        (i) When it appears to be more effective to ensure customer 
    compliance, or
        (ii) When such reduction may be more cost-effective for Western.
        (4) The penalty provisions in existing contracts will continue to 
    be in effect and administered and enforced according to applicable 
    contract provisions.
        (e) Assessing and ceasing penalties. Western will assess the 
    surcharge on the total charges for all power obtained by a customer 
    from Western and will not be limited to surcharges on only firm power 
    sales. When a customer resolves the deficiencies, Western will cease 
    imposing the penalty, beginning with the first full billing period 
    after compliance is achieved.
        (f) Penalties on MBAs and IRP cooperatives. In situations involving 
    an IRP submitted by an MBA on behalf of its members where a single 
    member does not comply, Western will impose a penalty upon the MBA on a 
    pro rata basis in proportion to that member's share of the total MBA's 
    power received from Western. In situations involving noncompliance by a 
    participant of an IRP cooperative, Western will impose any applicable 
    penalty directly upon that participant if it has a firm power contract 
    with Western. If the IRP cooperative participant does not have a firm 
    power contract with Western, then Western will impose a penalty upon 
    the participant's MBA on a pro rata basis in proportion to that 
    participant's share of the total MBA's power received from Western.
    
    
    Sec. 905.22  What is the administrative appeal process?
    
        (a) Filing written appeals with Western. If a customer disagrees 
    with Western's determination of the acceptability of its IRP, small 
    customer plan, minimum investment report, public benefits report, or 
    EE/RE report submittal, its compliance with an approved plan or report, 
    or any other compliance issue, the customer may request reconsideration 
    by filing a written appeal with the appropriate Regional Manager. 
    Customers may submit appeals any time such disagreements occur and 
    should be specific as to the nature of the issue, the reasons for the 
    disagreement, and any other pertinent facts the customer believes 
    should be brought to Western's attention. The Regional Manager will 
    respond within 45 days of receipt of the appeal. If resolution is not 
    achieved at the Regional Office level, the customer may appeal to the 
    Administrator, who will respond within 30 days of receipt.
        (b) Alternative dispute resolution. Upon request, Western will 
    agree to use mutually agreeable alternative dispute resolution 
    procedures, to the extent allowed by law, to resolve issues or disputes 
    relating to compliance with this part.
        (c) Imposition of penalty during appeal. Western will not impose a 
    penalty while an appeal process is pending. However, if the appeal is 
    unsuccessful for the customer, Western will impose the penalty 
    retroactively from the date the penalty would have been assessed if an 
    appeal had not been filed.
        (d) Meeting other requirements during appeal process. A written 
    appeal or use of alternative dispute resolution procedures does not 
    suspend other reporting and compliance requirements under this part.
    
    
    Sec. 905.23  How does Western periodically review plans and reports?
    
        (a) Periodic review of customer actions. Western will periodically 
    review customer actions to determine whether they are consistent with 
    the approved IRP, minimum investment report, or public benefits report. 
    Small customer plans and EE/RE reports are not subject to this periodic 
    review.
        (b) Reviewing representative samples of plans and reports. Western 
    will periodically review a representative sample of IRPs, minimum 
    investment reports, and public benefits reports, and the customer's 
    implementation of the applicable plan or report from each of its 
    marketing areas. The samples will reflect the diverse characteristics 
    and circumstances of the customers that purchase power from Western. 
    These reviews will be in addition to, and separate and apart from, the 
    review of initial and updated IRPs, minimum investment reports, and 
    public benefits reports to ensure compliance with this subpart.
        (c) Scope of periodic reviews. Periodic reviews may consist of any 
    combination of review of the customer's annual IRP progress reports, 
    minimum investment letters, or public benefits letters, telephone 
    interviews, or on-site visits. Western will document these periodic 
    reviews and may report on the results of the reviews in Western's 
    annual report.
    
    
    Sec. 905.24  What are the opportunities for using the Freedom of 
    Information Act to request data?
    
        IRPs, small customer plans, minimum investment reports, public 
    benefits reports, and EE/RE reports and associated data submitted to 
    Western are subject to the Freedom of Information Act (FOIA) and may be 
    made available to the public upon request. Customers may request 
    confidential treatment of all or part of a submitted document under 
    FOIA's exemption for confidential business information found in 10 CFR 
    1004.11. Western will make its own determination whether particular 
    information is exempt from public access and, if so, Western will treat 
    this information as confidential and not disclose it to the public.
    
    
    Sec. 905.25  How often is this program reviewed?
    
        At appropriate intervals, Western may initiate a public process to 
    review the regulations in this part to determine whether they should be 
    revised to
    
    [[Page 62613]]
    
    reflect changes in technology, needs, or other developments.
    
    [FR Doc. 99-29675 Filed 11-16-99; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Published:
11/17/1999
Department:
Western Area Power Administration
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking and public forum.
Document Number:
99-29675
Dates:
Written comments, in hard copy or via email, must be received no later than 5 p.m. Mountain Standard Time on December 30, 1999. A joint public information and public comment forum will be held starting at 1 p.m. Mountain Standard Time on November 30, 1999.
Pages:
62604-62613 (10 pages)
RINs:
1901-AA84: Redesign and Revision of Transmission Rates and Open Access Transmission Terms and Conditions
RIN Links:
https://www.federalregister.gov/regulations/1901-AA84/redesign-and-revision-of-transmission-rates-and-open-access-transmission-terms-and-conditions
PDF File:
99-29675.pdf
CFR: (25)
10 CFR 905.19
10 CFR 905.20
10 CFR 905.21
10 CFR 905.22
10 CFR 905.23
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