[Federal Register Volume 61, Number 19 (Monday, January 29, 1996)]
[Notices]
[Pages 2817-2820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1394]



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DEPARTMENT OF ENERGY
Western Area Power Administration


Proposed Power Allocation Procedures and Call for Applications, 
Post-2000 Resource Pool--Pick-Sloan Missouri Basin Program, Eastern 
Division

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Allocation Procedures and Call for 
Applications.

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SUMMARY: Western Area Power Administration (Western), a Federal power 
marketing agency of the Department of Energy, is publishing this notice 
of proposed procedures to implement Subpart C--Power Marketing 
Initiative of the Energy Planning and Management Program Final Rule, 10 
CFR part 905, published at 60 FR 54151. The Energy Planning and 
Management Program (Program), which was developed in part to implement 
section 114 of the Energy Policy Act of 1992, became effective on 
November 20, 1995. Subpart C of the Program provides for the 
establishment of project-specific resource pools and the allocation of 
power from these pools to new preference customers. These proposed 
procedures, in conjunction with the Eastern Division, Pick-Sloan 
Missouri Basin Program Final Post-1985 Marketing Plan (Post-1985 
Marketing Plan) (45 FR 71860) will establish the framework for 
allocating power from the resource pool to be established for the Pick-
Sloan Missouri Basin Program--Eastern Division (PSMBP-ED).

DATES: The comment period on the proposed procedures will begin with 
the publication of this notice in the Federal Register and will end 
March 4, 1996. To be assured of consideration, all written comments 
must be received by the end of the comment period. Western will hold 
public information forums and public comment forums on the proposed 
procedures on February 14, 

[[Page 2818]]
15, and 16, 1996 at the following locations and times:

February 14, 1996, Hilton Sioux Hotel, 707 Fourth St., Sioux City, 
Iowa, Information forum--1 p.m. (not to exceed 2 hours), Comment 
forum--immediately following the information forum
February 15, 1996, Best Western Doublewood Inn, 3333 13th Avenue South, 
Fargo, North Dakota, Information forum--1 p.m. (not to exceed 2 hours), 
Comment forum--immediately following the information forum
February 16, 1996, Holiday Inn, 1902 LaCross Street, Rapid City, South 
Dakota, Information forum--9 a.m. (not to exceed 2 hours), Comment 
forum--immediately following the information forum

ADDRESSES: All written comments regarding these proposed procedures 
should be directed to the following address: Mr. Joel K. Bladow, Acting 
Regional Manager, Upper Great Plains Customer Service Region, Western 
Area Power Administration, P.O. Box 35800, Billings, MT 59107-5800.
    All documentation developed or retained by Western for the purpose 
of developing these procedures will be available for inspection and 
copying at the Upper Great Plains Customer Service Region located at 
the above address.

FOR FURTHER INFORMATION CONTACT: Robert J. Harris, Assistant Area 
Manager for Engineering and Marketing, Upper Great Plains Customer 
Service Region, Western Area Power Administration, P.O. Box 35800, 
Billings, MT 59107-5800, (406) 247-7394.
    After all public comments have been thoroughly considered, Western 
will prepare and publish the Final Post 2000 Resource Pool Allocation 
Procedures in the Federal Register.

SUPPLEMENTARY INFORMATION: On October 20, 1995, Western published the 
Final Rule for the Program. The rule became effective on November 20, 
1995. The goal of the Program is to require planning and efficient 
electric energy use by Western's long-term firm power customers and to 
extend Western's firm power resource commitments. One aspect of the 
Program is the establishment of project-specific power resource pools 
when existing resource commitments expire and the allocation of power 
from these pools to new preference customers.
    Existing resource commitments for the PSMBP-ED expire on December 
31, 2000. In accordance with the Program, 96 percent (96%) of the firm 
power resources determined to be available at that time will be 
extended to existing customers. The remaining 4 percent (4%) will be 
placed in a resource pool from which power allocations to new customers 
will be made in accordance with these procedures and the Post-1985 
Marketing Plan.
The Proposed Post-2000 Resource Pool Allocation Procedures
    These proposed procedures for the PSMBP-ED address (1) eligibility 
criteria; (2) how Western plans to allocate the pool resources to new 
customers as provided for in the Program; and (3) the terms and 
conditions under which Western will sell the power allocated.

I. Amount of Pool Resources

    Western proposes to allocate 4 percent (4%) of the PSMBP-ED long-
term firm hydroelectric resource available as of January 1, 2001 as 
firm power (firm power) as provided for by the Program. Firm power 
means capacity and associated energy allocated by Western and subject 
to the terms and conditions specified in the Western electric service 
contract.

II. General Eligibility Criteria

    Western proposes to apply the following general eligibility 
criteria to applicants seeking an allocation of firm power under the 
proposed Post-2000 Resource Pool Allocation Procedures.
    A. Qualified utility applicants and qualified Native American 
applicants must be preference entities in accordance with section 9(c) 
of the Reclamation Project Act of 1939, 43 U.S.C. 485h(c), as amended 
and supplemented.
    B. Qualified utility applicants and qualified Native American 
applicants must be located within the currently established PSMBP-ED 
marketing area.
    C. Qualified utility applicants must not be currently receiving 
benefits, directly or indirectly, from a current PSMBP-ED firm power 
allocation. Qualified Native American applicants are not subject to 
this requirement.
    D. Qualified utility applicants must be able to use the firm power 
directly or be able to sell it directly to retail customers.
    E. Qualified utility applicants must have utility status by 
December 31, 1996. Utility status means that the entity has 
responsibility to meet load growth, has a distribution system, and is 
ready, willing, and able to purchase Federal power from Western on a 
wholesale basis.
    F. Qualified Native American applicants must be a Native American 
tribe as defined in the Indian Self Determination Act of 1975, 25 
U.S.C. 450b, as amended.

III. General Allocation Criteria

    Western proposes to apply the following general allocation criteria 
to applicants seeking an allocation of firm power under the proposed 
Post 2000 Resource Pool Allocation Procedures.
    A. Allocations of firm power will be made in amounts as determined 
solely by Western in exercise of its discretion under Reclamation Law.
    B. An allottee will have the right to purchase such firm power only 
upon the execution of an electric service contract between Western and 
the allottee, and satisfaction of all conditions in that contract.
    C. Firm power allocated under these procedures will be available 
only to new preference customers in the existing PSMBP--ED marketing 
area. This marketing area includes Montana (east of the Continental 
Divide), North Dakota, South Dakota, and specific areas in western 
Iowa, western Minnesota and eastern Nebraska. The marketing area of the 
PSMBP--ED is Montana east of the Continental Divide, all of North and 
South Dakota, Nebraska east of the 101 deg. meridian, Iowa west of the 
94\1/2\ deg. meridian, and Minnesota west of a line on the 94\1/2\ deg. 
meridian from the southern boundary of the state to the 46 deg. 
parallel and thence northwesterly to the northern boundary of the state 
at the 96\1/2\ deg. meridian.
    D. Allocations made to Native American tribes will be based on 
estimated load developed by the Native American Tribes. Inconsistent 
estimates will be adjusted by Western during the allocation process. 
Western is willing to consult with the Tribes to develop load 
estimating methods assuring consistent Native American load estimates 
across the region.
    E. Allocations made to utility customers will be based on the loads 
experienced in the 1994 summer season and the 1994-95 winter season. 
Western will use Mid-Continent Area Power Pool data trends to adjust 
this data in order to apply Post-1985 Marketing Plan criteria.
    F. Energy provided with firm power will be based upon the 
customer's monthly system load factor.
    G. Any electric service contract offered to a new customer shall be 
executed by the customer within six (6) months of a contract offer by 
Western, unless otherwise agreed to in writing by Western.
    H. The initial resource pool will be dissolved subsequent to the 
closing date for executing firm power contracts. Firm 

[[Page 2819]]
power not under contract will be used as determined by Western.
    I. The minimum allocation shall be 100 kilowatts (kW).
    J. The maximum allocation for utility customers shall be 5,000 
kilowatts (kW).
    K. Contract rates of delivery shall be subject to adjustment in the 
future as provided for in the Program.
    L. If unanticipated obstacles to the delivery of hydropower 
benefits to Native American tribes arise, Western retains the right to 
provide the economic benefits of its resources directly to the tribes.

IV. General Contract Principles

    Western proposes to apply the following general contract principles 
to all applicants receiving an allocation of firm power under the 
proposed Post 2000 Resource Pool Allocation Procedures.
    A. Western shall reserve the right to reduce a customer's summer 
season contract rate of delivery by up to 5 percent (5.0%) for new 
project pumping requirements, by giving a minimum of five (5) years' 
written notice in advance of such action.
    B. Western, at its discretion and sole determination, shall reserve 
the right to adjust the contract rate of delivery on five (5) years' 
notice in response to changes in hydrology and river operations. Any 
such adjustments shall only take place after public process.
    C. Western shall assist the allottee in obtaining third-party 
transmission arrangements for delivery of firm power allocated under 
these proposed procedures to new customers; nonetheless, each allottee 
is ultimately responsible for obtaining its own delivery arrangements.
    D. Contracts entered into under the proposed Post 2000 Resource 
Pool Allocation Procedures shall provide for Western to furnish firm 
electric service effective from January 1, 2001, through December 31, 
2020.
    E. The contracts entered into as a result of the proposed 
procedures shall incorporate Western's standard provisions for power 
sales contracts, integrated resource planning, and the general power 
contract provisions.

V. Applications for Firm Power

    Western requests all applications be submitted in writing to the 
Regional Manager, Upper Great Plains Customer Service Region, for an 
allocation of firm power under these procedures. Applications must be 
made only via certified, return receipt requested U.S. mail. No other 
means of submitting applications will be accepted. The applications 
must be received in Western's Upper Great Plains Customer Service 
Region at P.O. Box 35800, Billings, Montana 59107-5800, no later than 
the close of business on March 4, 1996.

A. Letter of Interest and Applicant Profile Data (APD)

    Each applicant must submit to the Regional Manager, Upper Great 
Plains Customer Service Region, a Letter of Interest in receiving firm 
power and the appropriate APD as outlined below.

B. Applicant Profile Data

    The content and format of the APD are outlined below. The 
information should be submitted in the sequence listed. The applicant 
must provide all requested information or the most reasonable available 
estimate. The applicant should note any requested information that is 
not applicable. The APD must be typed and two copies submitted by 
certified or return receipt requested mail to Western's Upper Great 
Plains Customer Service Region by the date specified above. The burden 
of ensuring consistency of the content of both copies rests with the 
applicant. Western is not responsible for errors in data or missing 
pages. All items of information in the APD should be answered as if 
prepared by the organization seeking the allocation.
    1. The APD shall consist of the following:
    a. Applicant:
    i. Applicant's name and address.
    ii. Person(s) representing applicant: Please provide the name, 
address, title, and telephone number of such person(s).
    iii. Type of organization: For example, municipality, rural 
electric cooperative, Native American tribe, state agency, Federal 
agency. Please provide a brief description of the organization that 
will interact with Western on contract and billing matters and whether 
the organization owns and operates its own electric utility system.
    iv. Applicable law under which organization was established.
    b. Loads:
    i. Utility Customers:
    (1) Number and type of customers served; i.e., residential, 
commercial, industry, military base, agricultural.
    (2) The actual monthly maximum demand in (kilowatts) and energy use 
(in kilowatt-hours) experienced in the 1994 summer season (May 1994 
through October 1994) and the 1994-95 winter season (November 1994 
through April 1995).
    ii. Native American Tribes:
    (1) Estimated maximum demand in kilowatts with a description of the 
method and basis for this estimated demand.
    c. Resources:
    i. A list of current power supplies, including the applicant's own 
generation and purchases from others. For each supply, provide capacity 
and location.
    ii. Status of power supply contracts, including a contract 
termination date. Indicate whether power supply is on a firm basis or 
some other type of arrangement.
    d. Transmission:
    i. Points of delivery: Provide the preferred point(s) of delivery 
on Western's system or a third-party's system and the required service 
voltage.
    ii. Transmission arrangements: Describe the transmission 
arrangements necessary to deliver firm power to the requested points of 
delivery.
    e. Other Information:
    The applicant may provide any other information pertinent to 
receiving an allocation.
    f. Signature:
    The signature and title of an appropriate official who is able to 
attest to the validity of the APD and who is authorized to submit the 
request for allocation.

C. Western's Consideration of Applications

    1. When the APD is received by Western, Western will verify that 
the general eligibility criteria set forth in section II has been met, 
and that all items requested in the APD have been provided.
    a. Western will request in writing additional information from any 
applicant whose APD is determined to be deficient. The applicant shall 
have 15 days from the date on Western's letter of request to provide 
the information.
    b. If Western determines that the applicant does not meet the 
general eligibility criteria, Western will send a letter explaining why 
the applicant did not qualify.
    c. If the applicant has met the eligibility criteria, Western will 
determine the amount of firm power to be allocated pursuant to the 
general allocation criteria set forth in section III. Western will send 
a draft contract to the applicant for review which identifies the terms 
and conditions of the offer and the amount of firm power allocated to 
the applicant.
    2. All firm power shall be allocated according to the procedures in 
the general allocation criteria set forth in section III.
    3. Western reserves the right to determine the amount of firm power 
to allocate to an applicant, as justified by the applicant in its APD.

[[Page 2820]]


VI. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act, 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 has determined that (1) 
this rulemaking relates to services offered by Western, and, therefore, 
is not a rule within the purview of the Act, and (2) the impacts of an 
allocation from Western would not cause an adverse economic impact on a 
substantial number of such entities. The requirements of this Act can 
be waived if the head of the agency certifies that the rule will not, 
if promulgated, have a significant economic impact on a substantial 
number of small entities. By his execution of this Federal Register 
notice, Western's Administrator certifies that no significant economic 
impact on a substantial number of small entities will occur.

VII. Review Under the Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980, 44 U.S.C. 
3501-3520, Western has received approval from the Office of Management 
and Budget (OMB) for the collection of customer information in this 
rule, under control number 1910-1200.

VIII. Review Under the National Environmental Policy Act

    Western has completed an environmental impact statement on the 
Program, pursuant to the National Environmental Policy Act of 1969 
(NEPA). The Record of Decision was published in the Federal Register on 
October 12, 1995 (60 FR 53181). Western's NEPA review will assure all 
environmental effects related to these procedures have been analyzed.

IX. Determination Under Executive Order 12866

    DOE has determined that this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of this notice 
by OMB is required.

    Issued in Golden, Colorado, January 19, 1996.
J.M. Shafer,
Administrator.
[FR Doc. 96-1394 Filed 1-26-96; 8:45 am]
BILLING CODE 6450-01-P