[Federal Register Volume 61, Number 55 (Wednesday, March 20, 1996)]
[Notices]
[Pages 11389-11390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6709]



-----------------------------------------------------------------------


DEPARTMENT OF ENERGY

Notice of Publication of the Insufficiency and Allocations 
Exhibit for the Power Sales Contract

AGENCY: Bonneville Power Administration (BPA), DOE,

ACTION: Publication of BPA's Insufficiency and Allocations Exhibit.

-----------------------------------------------------------------------

SUMMARY: Section 5(b)(5) of the Northwest Power Act requires BPA to 
include a provision in its requirements contracts establishing how BPA 
would distribute its power if there is not enough power to meet the 
demand. The provisions published below satisfy this statute. Customers 
that negotiate a new requirements contract with BPA will have the 
choice of referencing the provisions containing the formula below or 
incorporating the same language as an exhibit to their contract.

FOR FURTHER INFORMATION CONTACT: Mr. Dale Latham, Power Contracts--
MPSD, Bonneville Power Administration, P.O. Box 3621, Portland, Oregon, 
97208-3621, phone number (503) 230-5260, fax number (503) 230-4973.

SUPPLEMENTARY INFORMATION:

I. Purpose of Insufficiency and Allocation Provisions

    The purpose of these provisions is to comply with the requirements 
of the Northwest Power Act regarding insufficiency by describing the 
methodology that BPA will use to establish each Customer's share of 
available Requirements Power during a period of insufficiency as 
determined by BPA. This methodology will be referenced in new power 
sales contracts which BPA is currently negotiating with its preference 
utility customers.

II. Provisions

    If and when BPA forecasts, on a planning basis, an inability to 
acquire resources to meet its Requirements obligation to supply demand 
and diurnal energy quantities to its public body and cooperative, 
Federal agency, direct-service industrial, and investor-owned utility 
customers, BPA will issue a written notice to limit its supply 
obligation. BPA's resulting obligation will be no less than an amount 
equal to the Federal Base System (FBS) firm peak capability and firm 
energy capability.
    Notwithstanding any insufficiency notice issued based on planning 
criteria specified in the paragraph above, BPA's obligation to supply 
demand and diurnal energy amounts in an operating year must equal or 
exceed the firm peak capability or firm energy capability of the FBS 
before BPA implements an insufficiency restriction.

III. Insufficiency Notices

    The insufficiency notice will specify BPA's best estimate of each 
month's demand and diurnal energy capability of the FBS, and the 
associated allocation to each customer class. Such allocation is to be 
based on BPA's estimate of the anticipated loads that each such class 
will place on BPA for the month. In making its estimate, BPA will sum: 
the then-current Requirements Power purchase amounts for the month for 
all customers in the affected class that have established purchase 
amounts for Requirements Power; and for all other customers in the 
class, BPA's forecast of the customers' Requirements Power load on BPA 
for the month.

IV. Notice of Insufficiency Calculation

    At least 3 months prior to any month in which BPA has an 
insufficiency, BPA will calculate each customer's share of available 
Federal resources and make such calculations available to its 
customers.

V. Retraction of Insufficiency Notice

    When BPA is able to meet its supply obligations based on the amount 
of Requirements Power that the customers would purchase absent the 
restriction, BPA may cancel the restriction.

VI. Formula Allocations

    The following definitions are used in the allocation formulas: 
Class 1 = public body, cooperative class; Class 2=Federal agency class; 
Class 3=direct-service industry class; Class 4=investor-owned utility 
class.

VII. Allocation Formula Variables Defined

    The following variables are used in the allocations formulas: S1-
Requirements Service for a Class 1 customer; S2-Requirements Service 
for a Class 2 customer; S3-Requirements Service for a Class 3 customer; 
S4-Requirements Service for a Class 4 customer; SM-A Montana customer's 
Requirements Service purchases; M-Montana Reservation Resource amount 
as determined by BPA; RBPA-Total FBS and non-FBS Resources available to 
BPA to serve Requirements Service loads. Includes RT: R1-Resources sold 
to BPA by a Class 1 customer plus in-lieu power sold by BPA to a Class 
1 customer; R2-Resources sold to BPA by a Class 2 customer; R3-
Resources sold to BPA by a Class 3 customer; R4-Resources sold to BPA 
by a Class 4 customer plus in-lieu power sold by BPA to a Class 4 
customer; RT-Total of R1, R2, R3 and R4.

VIII. Firm Energy and Peak Demand Allocation Formulas

    BPA will use the following formulas to determine each Customer's 
monthly right to power during a period of insufficiency. BPA will 
calculate the Customer's monthly right to demand and energy during each 
of BPA's established diurnal energy periods. The Customer's right to 
purchase Requirements Power from BPA is limited to the calculated 
quantities.
    Formula 1: If RBPA - 
(R3+R4)(S1+S2), all 
Class 1 and Class 2 Customers receive allocations equal to their 
respective Requirements Power purchases. Go to Formula 2.
    Otherwise: If M/SM>(RBPA-RT)/(S1+S2) 
then: Each Montana Customer's allocation=SM/SM * M. Other 
Class 1 and Class 2 Customer's allocation is as follows: Allocate R1 to 
eligible Class 1 Customers and R2 to eligible Class 2 Customers. 
Allocate excess R1 proportionally to remaining Class 1 Requirements 
Power purchases and excess R2 proportionally to remaining Class 2 
Requirements Power purchases. Iterate until all R1 and R2 is used. Use 
S1/(S1+S2-SM) * (RBPA-RT-M) for 
allocating to remaining Class 1 Requirements Power purchases. Use S2/
(S1+S2-SM) * (RBPA-RT-M) for 
allocating to remaining Class 2 Requirements Power purchases. Class 3 
and Class 4 customer's allocation is as follows: Allocate R3 to 
eligible Class 3 Customers and R4 to eligible Class 4 Customers. 
Allocate excess R3 proportionally to remaining Class 3 Requirements 
Power purchases and excess R4 proportionally to remaining Class 4 
Requirements Power purchases. Iterate until all R3 and R4 is used. 
Finished calculation for 1 month. Return to Formula 1 to proceed with 
monthly calculation.
    If M/SM<(RBPA-RT)/(S1+S2) then: All 
Class 1 and Class 2 customers'

[[Page 11390]]

allocation is as follows: Allocate R1 to eligible Class 1 customers and 
R2 to eligible Class 2 customers. Allocate excess R1 proportionally to 
remaining Class 1 Requirements Power purchases and excess R2 
proportionally to remaining Class 2 Requirements Power purchases. 
Iterate until all R1 and R2 is used. Use S1/(S1+S2) * 
(RBPA-RT) for allocating to remaining Class 1 Requirements 
Power purchases. Use S2/(S1+S2) * (RBPA-RT) 
for allocating to remaining Class 2 Requirements Power purchases. 
Follow steps for Class 3 and Class 4 in sections 2(d)(3)(C) and 
2(d)(3)(D).
    Formula 2: If 
RBPA-(S1+S2+R4)S3, all 
Class 3 customers receive an allocation equal to their respective 
Requirements Power purchases. Go to Formula 3. Otherwise: Class 3 
customers' allocation is as follows: S3/S3 * 
(RBPA-S1-S2-R3-R4)+R3. Allocate 
excess R3 proportionally to remaining Class 3 Requirements Power 
purchases. Iterate until all R3 is used. Class 4 customers' allocation 
is as follows: Allocate R4 to eligible Class 4 customers. Allocate 
excess R4 proportionally to remaining Class 4 Requirements Power 
purchases. Iterate until all R4 is used. Finished calculation for 1 
month. Return to Formula 1 to proceed with monthly calculation.
    Formula 3: If 
RBPA-(S1+S2+S3)S4, there 
is no insufficiency in this month. All customers receive an allocation 
equal to their Requirements Power purchases. Finished calculation for 1 
month. Return to Formula 1 to proceed with monthly calculation. 
Otherwise: Class 4 customer's allocation is as follows: S4/S4 
* (RBPA-S1-S2-S3-R4)+R4. Allocate 
excess R4 proportionally to remaining Class 4 loads. Iterate until all 
R4 is used. Finished calculation for 1 month. Return to Formula 1 to 
proceed with monthly calculation.
    These provisions will be revised only if BPA secures the agreement 
of all affected customers.

    Issued in Portland, Oregon on February 27, 1996.
Randall W. Hardy,
Administrator and Chief Executive Officer.
[FR Doc. 96-6709 Filed 3-19-96; 8:45 am]
BILLING CODE 6450-01-P