[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29706]


[[Page Unknown]]

[Federal Register: December 6, 1994]


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DEPARTMENT OF ENERGY
Western Area Power Administration

 

Proposed Principles of Integrated Resource Planning for Use in 
Resource Acquisition and Transmission Planning

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed principles and request for public comments.

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SUMMARY: Western Area Power Administration (Western) proposes to use 
principles of integrated resource planning (IRP) in its acquisition of 
resources (supply-side and demand-side) and in its transmission 
planning program. Western has developed the proposal contained in this 
notice for public consideration. After considering public comment on 
this proposal, Western will adopt final principles of IRP as the policy 
under which project-specific resource acquisition and transmission 
planning procedures will be developed. These project-specific 
procedures will be developed through separate public processes.

DATES: Western seeks comments on the proposed principles outlined in 
this notice. To be considered, comments need to be received by March 7, 
1995.
    In addition to publication in the Federal Register, Western is 
mailing this notice to parties it has identified as likely to be 
interested, including those who have expressed an interest in the 
public involvement processes for Western's power marketing and 
transmission planning programs. Western will also send information on 
these principles to those who request it.
    At this time, Western plans to hold one public information and 
comment meeting to provide information about and to accept public 
comment on these proposed principles. This public meeting will be held 
in Denver, Colorado, at 1 p.m., January 12, 1995, at the Stapleton 
Plaza Hotel, 3333 Quebec Street. Additional public meetings at other 
locations will be considered. Written comments will also be accepted. A 
summary of comments received and Western's responses will be provided 
in a subsequent Federal Register notice and to parties indicating they 
wish to continue receiving information about this process.

FURTHER INFORMATION: To receive information on these principles, and/or 
to make requests to receive subsequent mailings on this process, 
contact: Mr. Michael S. Cowan, Director, Division of Power Operations 
and Resources, Western Area Power Administration, P.O. Box 3402, 
Golden, CO 80401-0098, (303) 275-1630.

Background

    On August 9, 1994, Western provided notice of its proposed Energy 
Planning and Management Program (Program), 59 FR 40543, concerning 
requirements for Western's customers to undertake integrated resource 
planning consistent with the statutory requirements of the Energy 
Policy Act of 1992. In that notice, Western committed to develop and 
use principles of IRP in its resource acquisition and transmission 
planning programs. The separate public process to develop IRP 
principles for Western's programs begins with publication of these 
draft principles.
    The draft principles outlined in this notice differ from those 
proposed for Western's customers. Western's resource aquisitions are 
primarily short-term purchases of supplemental resources to firm 
variable hydropower generation, not aquisition's of resources to meet 
long-term load growth through the principles set forth in section 114 
of the Energy Policy Act of 1992. The principles have also been 
modified so that they can be applied to Western's transmission planning 
process, which does not deal with new generation resources, only new or 
upgraded transmission facilities.
    Western is currently involved in other public processes that can 
have an impact on future purchase power requirements. These processes 
are the Replacement Resources Process, pursuant to the Grand Canyon 
Protection Act of 1992 (Public Law 102-575); the Central Valley Project 
2004 Power Marketing Environmental Impact Statement (EIS); and the Salt 
Lake City Area Integrated Projects Power Marketing EIS. The principles 
being developed under this public process will be applied when 
acquiring resources related to the decisions from these other public 
processes. These principles will serve as the policy under which 
specific procedures are developed as each project identifies the need 
to acquire resources or increase Western's transmission capability.

Scope

    The proposed formal principles of IRP would apply specifically to:
    1. Resource acquisitions involving a commitment to purchase a 
resource continuously or a commitment to make recurring purchases. 
Normally, formal principles would not be applied to unpredictable 
seasonal purchases, day-to-day economy energy purchases, and other 
short-term transactions.
    2. New or upgraded transmission system construction with a 1995 
total cost estimate in excess of $5 million for an individual project. 
This 1995 cost level would be adjusted each year using the construction 
cost index.
    Where practicable, principles of IRP will also be applied 
informally to other Western transmission projects and/or resource 
acquisitions.

Proposed Principles of Integrated Resource Planning

    I. Resource Acquisition Principles: Western's resource acquisition 
activities would be determined by project-specific power marketing 
plans, hydropower production capability, and the application of the 
following proposed principles of IRP:
    1. Western will consider a full range of resource options, both 
supply-side and demand-side, as well as renewable resource options.
    2. On a project-by-project basis, Western, in concert with 
interested stakeholders, will develop (1) methods and procedures to 
determine the need for resource acquisition and (2) criteria to be used 
in evaluating power resource alternatives.
    3. Evaluation criteria will address cost, environmental impact, 
dependability, dispatchability, risk, diversity, and the ability to 
verify demand-side alternatives. Evaluation criteria will be reviewed 
as the need for resources changes or when long-term commitments to 
purchase power expire.
    4. Evaluation criteria will be consistent with Western's power 
marketing policy, which states that Federal power is to be marketed in 
such a manner as to encourage the most widespread use thereof at the 
lowest possible rates to consumers consistent with sound business 
principles. The policy, found in Delegation Order No. 0204-108 (58 FR 
59716, November 10, 1993), is derived from section 5 of the Flood 
Control Act of 1944, 16 U.S.C. 825s.
    5. Resource acquisition planning will be consistent with power 
marketing plans and associated contractual obligations.
    6. Resource acquisition decisions will be documented and made 
available to Western's power customers and the public.
    II. Transmission Planning Principles: Western's transmission 
planning is conducted to assess the capability of the Federal 
transmission system to provide adequate and reliable electric service 
to its customers and the interconnected power grid. The principles of 
IRP that will apply to Western's transmission planning are as follows:
    1. Western will conduct early and wide public involvement to 
confirm the purpose and need of a proposed transmission project. 
Western proposes that a public meeting be held early in the planning 
process once the need for system modifications has been identified and 
prior to start of the National Environmental Policy Act (NEPA) process.
    2. At the public meeting, Western will describe the need to be met 
and seek comments on alternative ways to address the need, including 
demand-side management, new construction, or upgrade of existing 
facilities.
    3. Western will notify interested parties, including power 
customers, residents of the area, environmental groups, various 
resource suppliers including renewable generation entities, and other 
transmission utilities in the area, as well as other participants in 
the project if it is a joint project.
    4. Alternatives that are feasible will be evaluated for cost, 
general environmental impacts, and system reliability concerns in 
coordination with interested parties.
    5. The results of this evaluation will be made available to 
Western's power customers and the public.
    Transmission facilities needed for reliability will be based on 
mitigating problems related to power system operations or replacing 
unsafe, aged, worn out, or inefficient equipment.
    Western is committed to join the Western Regional Transmission 
Association and has joined the Southwest Regional Transmission 
Association (SWRTA). Both groups will promote coordinated planning and 
efficient use of transmission capacity and will provide another means 
for involvement by Western's customers. As appropriate, Western can 
invite other interested parties to attend SWRTA meetings as guests of 
Western. It is anticipated that some form of regional transmission 
group will be established in the Mid-continent Area Power Pool. This 
will also facilitate public involvement in considering Western's future 
transmission needs.

Public Process

    The public process to determine the principles of integrated 
resource planning that Western will incorporate into its resource 
acquisition and transmission planning processes begins with publication 
of this notice.
    Comments on these proposed principles are being sought during a 90-
day comment period. Following this comment period, the principles to be 
adopted will be published in the Federal Register. This public process 
ends with publication of final principles in the Federal Register. 
Final principles will be effective 30 days after publication.

Environmental Evaluation

    Western is seeking comment on the IRP principles outlined in this 
notice through a public process. Methods, procedures, and criteria for 
implementing these principles have yet to be developed and will be 
project-specific. Western is committed to initiating an appropriate 
public process under NEPA and its implementing regulations for these 
project-specific actions at the earliest possible time. The potential 
environmental effects of the methods, procedures, and criteria will be 
evaluated in addition to analyzing the effects of the acquisition of 
resources in these subsequent processes.

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 the Office of Management and Budget is required.

    Issued at Golden, Colorado, November 10, 1994.
J.M. Shafer,
Administrator.
[FR Doc. 94-29706 Filed 12-5-94; 8:45 am]
BILLING CODE 6450-01-P