[Federal Register Volume 61, Number 153 (Wednesday, August 7, 1996)]
[Notices]
[Pages 41142-41147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20078]


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DEPARTMENT OF ENERGY
Western Area Power Administration


Final Power Allocation Procedures of the Post-2000 Resource 
Pool--Pick-Sloan Missouri Basin Program, Eastern Division

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of final procedures.

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SUMMARY: Western Area Power Administration (Western), a Federal power 
marketing agency of the Department of Energy, hereby announces its Post 
2000 Resource Pool Allocation Procedures to fulfill the requirements of 
Subpart C--Power Marketing Initiative of the Energy Planning and 
Management Program Final Rule, 10 CFR 905, published at 60 FR 54151. 
The Post 2000 Resource Pool Allocation Procedures are Western's 
implementation of Subpart C--Power Marketing Initiative of the Energy 
Planning and Management Program Final Rule. Western's proposed 
procedures were published in the Federal Register at 61 FR 2817, 
January 29, 1996 and revised and clarified in the Federal Register at 
61 FR 28574, June 5, 1996. Responses to public comments received 
pertaining to the proposed procedures are included in this notice.

DATES: The Post 2000 Resource Pool Allocation Procedures will become 
effective 30 days from the date of publication of this notice, and will 
remain in effect until December 31, 2020.

ADDRESSES: Information regarding the Post 2000 Resource Pool Allocation 
Procedures, including comments, letters, and other supporting documents 
made or kept by Western for the purpose of developing the final 
procedures, are available for public inspection and copying at the 
Upper Great Plains Customer Service Region, Western Area Power 
Administration, located at 2900 4th Avenue North, P.O. Box 35800, 
Billings, MT 59107-5800.

SUPPLEMENTARY INFORMATION: Western published a notice of proposed 
procedures on January 29, 1996, to implement Subpart C--Power Marketing 
Initiative of the Energy Planning and Management Program Final Rule, 10 
CFR 905, published at 60 FR 54151 in the Federal Register. 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. Those 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 (P-SMBP-ED).
    Western held public information and comment forums on the proposed 
procedures on February 14, 15, and 16, 1996, to accept oral and written 
comments on the proposed procedures and call for applications. The 
initial formal comment period ended March 4, 1996. On March 8, 1996, 
Western published a notice to extend the time that written comments and 
applicant profile data could be submitted until April 8, 1996. On June 
5, 1996, in the Federal Register at 61 FR 28574, Western published a 
30-day notice to respond to comments regarding Section III, General 
Allocation Criteria, Paragraph E, to clarify the Post 2000 Resource 
Pool Allocation Procedures in order to fulfill the intent of the 
Program and called for additional applications.
    The Post 2000 Resource Pool Allocation Procedures set forth in this 
Federal Register notice will explain in detail how Western intends to 
implement Subpart C of the Power Marketing Initiative of the Energy 
Planning and Management Program Final Rule in the P-SMBP-ED.

Response to Customer Comments Regarding Post 2000 Resource Pool 
Allocation Procedures

I. Amount of Pool Resources

    Western proposed to allocate 4 percent of the P-SMBP-ED long-term 
firm hydroelectric resource available as of January 1, 2001, as firm 
power as provided for by the Program.
    Comment: We received several comments from Native American tribes 
expressing great disappointment in the size (4 percent) of the resource 
pool. It is their belief that the pool is not large enough to serve 100 
percent of their current and future electrical needs. One comment 
suggested that the amount of power available in the resource pool will 
not be sufficient to meet Native American demand on January 1, 2001.
    Response: The 4 percent resource pool was derived from the Program, 
and therefore the size of the pool is outside this process. Two future 
1 percent resource pools were also identified as part of the Program 
and allocations from these future resource pools will be dealt with in 
future public processes.

[[Page 41143]]

II. General Eligibility Criteria

    Western proposes to apply general eligibility criteria to 
applicants seeking an allocation of firm power under the proposed Post-
2000 Resource Pool Allocation Procedures.
    Comment: Western received several comments suggesting that if a 
Native American tribe establishes a utility and applies for an 
allocation from Western, they should be considered under utility 
applicant status, not as a Native American tribe applicant.
    Response: If a Native American tribe makes application under this 
process as a utility applicant, Western would consider the application 
under utility applicant criteria.
    Comment: Western received comments regarding the date for setting 
up utility status. One comment suggested that section II.E. should be 
written as follows: ``qualified utility and Native American applicants 
must have achieved operating utility status by December 31, 1995.'' 
Other comments suggested the deadline for achieving utility status be 
extended to June 1, 1997 or possibly later.
    Response: The date for achieving utility status was determined by 
the Program. To be eligible to apply for power available from the 
resource pool, those entities that desire to purchase Western power for 
resale to consumers, must have attained utility status by December 31, 
1996. Section 905.35, Paragraph (c) of Subpart C, Power Marketing 
Initiative, of 60 FR 54151 states that: All potential new customers, 
except Native American tribes, must be ready, willing, and able to 
receive and distribute or use power from Western. Ready, willing, and 
able means that (1) the potential customer has the facilities needed 
for the receipt of power or has made the necessary arrangements for 
transmission and/or distribution service, (2) the potential customer's 
power supply contract with third parties permit the delivery of 
Western's power, and (3) metering, scheduling, and billing arrangements 
are in place.
    Comment: Several comments expressed support for the use of the 
Indian Self-Determination Act (Act) to determine eligibility of Native 
American tribe applicants.
    Response: The allocation procedures use the Act to determine 
whether or not an applicant is a qualified Native American applicant. 
Use of the Act to make these decisions was first used in the Program 
final rule. Because these allocation procedures will be used in 
allocating the resource pool created by those regulations, Western used 
the same definition in this process.

III. General Allocation Criteria

    Western proposes to apply general allocation criteria to applicants 
seeking an allocation of firm power under the proposed Post 2000 
Resource Pool Allocation Procedures.
    Comment: One comment suggested that the 5,000 kW limitation on new 
allocations should apply to all applicants, one comment suggested that 
the limitation should not apply to Native American tribes and another 
comment suggested the maximum amount be increased to 6,000 kW.
    Response: The Post 1985 Marketing Criteria established the 5,000 kW 
limitation referenced in the allocation criteria. This limitation does 
not apply to Native American tribe applicants. The 5,000 kW limit was 
placed in the Post 1985 Marketing Plan to ensure that the sale of P-
SMBP-ED power would benefit a wide class of users which is consistent 
with Federal Reclamation Law.
    Comment: A comment was made that Native American tribes should have 
priority status in any allocations that are being made.
    Response: The preference clause only provides that public entities 
be given preference over private entities in the marketing of power 
from Federal reclamation projects. There are no preference entities 
which have greater privileges than another. Western has always 
considered Native American tribes to be preference customers, and in 
response to comments received during the Program public process, 
Western has changed its policy of requiring that Native American tribes 
achieve utility status prior to receiving an allocation.
    Comment: Western received many comments on how Native American 
loads should be determined. Many stated that Western should develop a 
standard method for determining Native American loads and apply that 
method to all Native American tribe applicants. Others advocated using 
actual tribal loads on the reservation.
    Response: A variety of methods of load estimation were submitted by 
Native American tribes. Western accepted load estimates developed by 
the Native American tribes. Inconsistent estimates will be adjusted by 
Western. The proposed allocations developed from these load estimates 
will be published in a subsequent Federal Register notice.
    Comment: Western received comments on the issue of off-reservation 
use of Native American tribe allocations. The majority of the comments 
supported use of allocations by qualified Native American tribe 
applicants on the reservation only. Others supported off-reservation 
use under certain circumstances. In particular, several comments 
advocated off-reservation use for the Turtle Mountain Tribe.
    Response: Off-reservation use of Native American tribe allocations 
under certain circumstances as determined by Western was allowed for in 
60 FR 54151. The circumstances under which off-reservation use of a 
Native American tribe allocation will be allowed will be determined by 
Western on a case-by-case basis after final allocations are made.
    Comment: Western received comments that Native American tribes are 
already receiving benefits of Federal hydropower through the 
cooperatives that serve them and these benefits need to be considered 
when Western makes allocations to Native American tribes so they do not 
receive more than 100 percent of their current electrical requirements.
    Response: Western understands that some Native American tribes are 
already receiving the benefits of Federal hydropower through the 
cooperatives that serve them. However, the methodology for determining 
Native American tribal allocations will be set forth in a subsequent 
future Federal Register notice. Therefore, this comment will be 
addressed in that notice.
    Comment: Western received many comments on the proposal to adjust 
utility and nonutility applicants' loads using Mid-Continent Area Power 
Pool data trends. Some comments stated that actual 1979-80 data should 
be used. Others stated that unadjusted 1994-95 data should be used. One 
comment suggested basing allocations on load data from November 1994 
through October 1995.
    Response: As revised and clarified in the Federal Register at 61 FR 
28574, June 5, 1996, Western will use actual unadjusted load data from 
May 1994 through April 1995 to determine utility applicants' 
allocations. Western agrees with the numerous comments that using Mid-
Continent Area Power Pool data trends to adjust utility applicants' 
loads would unfairly penalize those applicants who had little or no 
load growth between 1979 and 1995.
    Comment: Western received a comment to consider a reallocation 
based on a percentage to all customers should there be over 5 MW of 
firm power not under contract subsequent to the closing date for 
executing firm power contracts.
    Response: As stated in the Final Post 2000 Resource Pool Allocation

[[Page 41144]]

Procedures section III.H below, Western, at its discretion, reserves 
the right to determine usage of firm power not under contract.
    Comment: Western received comments that support Western's proposal 
to dissolve the resource pool as long as it is not rate impacting.
    Response: Western is in agreement with this comment and will 
consider the best available options should this power not allocated in 
these procedures be available.
    Comment: Western received comment that the entire 4 percent 
resource pool should be allocated to qualified applicants.
    Response: Western plans to make allocations from the 4 percent 
resource pool to qualified utility and nonutility applicants based upon 
Post-1985 Marketing Plan Criteria and to Native American tribe 
applicants based upon serving a fair share of their load. Based upon 
these criteria, the total allocations from the resource pool may be 
less than the resource pool.
    Comment: It was suggested that a Native American tribe would have 
to demonstrate the existence of an agreement with a viable utility 
system for delivery of the allocation to the end user.
    Response: Western has determined that placing an additional 
requirement on Native American tribes would be unduly burdensome and is 
not consistent with the intent of the Program at 60 FR 54151. If an 
agreement with a utility responsible for delivery is not attainable, 
Western has reserved the right to provide the economic benefits of its 
resources directly to Native American tribes.
    Comment: Where is the funding going to come from for making credits 
to tribal members?
    Response: Should this program require funding, Western will use net 
bill or bill credit methods. If these methods are not sufficient, 
additional appropriations from Congress may have to be made to provide 
economic benefit.
    Comment: The formula for calculating the amount of credit must 
recognize the specific situation of the local utility, because their 
costs vary significantly from Western customer to Western customer.
    Response: Western is in agreement with the comment. Should any 
crediting formula be required, Western will recognize the specific 
local utility situation as needed.
    Comment: Western's customers have already given up a portion of 
their allocations; they cannot also be asked to fund additional payment 
to tribal members. It appears they may have increased rates on the 
remainder of their allocation.
    Response: Western has no intent to increase P-SMBP-ED rates.
    Comment: Western received comment that the suggested method of 
delivering the benefits of Federal hydropower to the Native American 
tribes would be a bill crediting arrangement.
    Response: Western agrees that a bill crediting arrangement is a 
viable method of delivering the benefits of Federal hydropower to 
Native American tribes. However, flexibility must be retained in the 
delivery of such benefits in order to fit a diverse group of Native 
American tribes and power suppliers. The method for delivering the 
benefits of Federal hydropower to the tribes will be determined 
following the allocation process.
    Comment: Western received comment that if Federal hydropower 
benefits are delivered to Native American tribes in the form of 
monetary payments, those payments should be contractually obligated to 
go toward energy use.
    Response: Western views direct monetary payments in lieu of 
delivery of Western power and energy as a last resort to be used only 
if unanticipated obstacles to the delivery of Federal hydropower 
benefits arise. Should this situation arise, Western will consider 
contractual stipulations on how those monetary payments are to be used 
by Native American tribes. Such stipulations are beyond the scope of 
this public process.
    Comment: Western received comment that if tribal members' bills are 
credited, the portion of the resource pool associated with these 
credits should be retained by all existing customers at cost-based 
rates.
    Response: Western will not increase existing customers' allocations 
for the amount associated with any tribal energy credits. Energy 
crediting may not always be the means by which some Native American 
tribes receive the benefits of Federal hydropower. In the event that at 
a later time a Native American tribe changes the method by which they 
receive the benefits of Federal hydropower, Western will not allocate 
the energy associated with bill credits to existing customers.

IV. General Contract Principles

    Western proposes to apply general contract principles to all 
applicants receiving an allocation of firm power under the proposed 
Post 2000 Resource Pool Allocation Procedures.
    Comment: A comment was offered which suggested that contracts with 
utility applicants should explicitly require cooperation on the part of 
those utilities in the transmission of firm power to the Native 
American tribes as a condition of that sale.
    Response: To date, Western has received cooperation from P-SMBP-ED 
cooperatives on the issue of delivery of hydropower benefits to Native 
American tribes. Even if unanticipated obstacles to the delivery of 
these benefits arise, Western has retained the right to provide the 
economic benefits of its resource directly to Native Americans. Because 
of the options available, Western sees no reason to address this issue 
contractually. Western has already executed the contract extensions for 
the P-SMBP-ED resource which will exist after the 4 percent resource 
pool is created. In addition, there may be utilities which Western does 
not contract with for a firm power allocation which would be 
responsible for transmission of Native American tribe allocation.
    Comment: Receipt of a Federal power allocation by a Native American 
tribe must allow the current power supplier the ability to negotiate 
delivery charges which prevent the negative financial effect of 
creating the need to raise rates.
    Response: Delivery arrangements are the responsibility of the new 
customers.
    Comment: The proposed rule should include assisting the Native 
American tribes in obtaining a suitable third-party distribution system 
retail wheeling agreement.
    Response: The P-SMBP-ED cooperatives have been supportive of the 
delivery of the benefits of power allocations to Native American 
tribes. 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.
    Comment: A comment suggested that it would be appropriate to 
include the utility ultimately responsible for delivery of the 
allocation to Native American tribes in the contract process, and that 
Western should be an advocate in favor of the tribes in that process.
    Response: Western will assist the allottee in obtaining third-party 
transmission arrangements for delivery of firm power. To the extent 
that utilities are involved in these arrangements, Western will work 
with those entities. However, it is the ultimate responsibility of the 
allottee to obtain its own delivery arrangements.
    Comment: All new customers, utility, nonutility, and Native 
American tribes alike, should have the same contractual provisions in 
their contracts as

[[Page 41145]]

Western's present customers. Specifically, all contracts should 
continue to have the provision preventing the sale of Federal power to 
customers other than retail customers.
    Response: Western is in agreement with this comment. The contract 
with all new customers will contain Western's existing general contract 
principles.
    Comment: If Western experiences additional costs under the proposed 
pool allocation, all program participants should participate in these 
costs, not just the existing Western utilities.
    Response: Our interpretation of this comment was that all firm 
power customers of Western, inclusive of the new customers brought in 
with the allocation of the 4 percent resource pool, will all be 
impacted if there are additional costs to Western under the proposed 
pool allocations. Western agrees that all firm power customers, 
inclusive of the new customers, would be impacted through their rates 
if there is a cost change due to the allocation of the 4 percent 
resource pool.
    Comment: We received several comments requesting that Native 
American tribes not be required to comply with the Integrated Resource 
Planning (IRP) requirements of the Program, unless the Native American 
tribe applies as a utility.
    Response: Title II of the 1992 Energy Policy Act requires all 
Western customers to comply with the IRP criteria. This requirement was 
also brought forward and restated in the Program language. Therefore, 
IRP requirements are required of all customers including Native 
American tribes.

Responses to Comments Regarding Other Issues

    Comment: We received a comment from a cooperative expressing their 
disappointment at the establishment of the 4 percent resource pool 
because it means a rate impact for members.
    Response: Western understands the concern for customers who may be 
adversely impacted with the reduction of their Federal power 
allocations. However, this reduction was provided for in the Program 
and is beyond the scope of this public process.
    Comment: We received a comment from a cooperative expressing 
disappointment that Native American tribes will be allocated power from 
the 4 percent resource pool, because it comes as an expense to Western 
customers in the region.
    Response: Western understands the concern of customers who may be 
adversely impacted with the reduction of their Federal power 
allocations. However, this reduction was provided for in the Program 
and is beyond the scope of this public process.
    Comment: We received a comment requesting Western's Upper Great 
Plains Customer Service Region to establish a ``Native American Desk'' 
(Desk) to handle Native American issues.
    Response: We are a diverse agency with many different functions. It 
is our belief that issues with Native Americans are handled effectively 
and efficiently by dealing directly with the divisions involved in each 
issue. The establishment of a Desk is not part of this public process 
and will be considered if it would result in increased responsiveness 
to Western's Native American customers.
    Comment: Federal facilities, such as the Bureau of Indian Affairs 
or other Federal agencies, should not be eligible to receive any new 
resources.
    Response: Federal facilities are eligible for allocations of 
Federal power as the preference clause has been defined through Federal 
Reclamation Law.
    Comment: One comment suggested that any allocation to a Native 
American tribe should be made jointly to both the tribe and the utility 
that will transfer the resource.
    Response: The intent of the Program at 60 FR 54151 was to provide 
the benefits of Federal hydropower allocations directly to individual 
tribes. This principal is consistent with how Western treats existing 
customers. Western does not feel that the goal of the Program would be 
served by jointly allocating Native American allocations to utilities 
and tribes.
    Comment: Several comments were received expressing a concern that 
the allocation procedures would somehow imply or require tribal 
jurisdiction over the entity which will supply the Native American 
load.
    Response: The issue of tribal jurisdiction is beyond the scope of 
this public process. Western is not the proper authority to decide that 
issue, as it is outside of our mission. However, Western has not 
intended to expand the scope of tribal jurisdiction with these 
allocation procedures.
    Comment: One comment expressed appreciation for Western's Federal 
American Indian policy.
    Response: Western appreciates the positive response with respect to 
the attempts it has made to address Native American issues. Western 
supports the Department of Energy's American Indian policy which 
stresses the need for a government-to-government, trust-based 
relationship.
    Comment: Western received several requests for extending the 
deadline for submittal of the Applicant Profile Data (APD).
    Response: 61 FR 9449 published March 8, 1996, extended the deadline 
for submittal of APD and comments until April 8, 1996. Also, 61 FR 
28574 published June 5, 1996, clarifying the terms of Post 2000 
Resource Pool Allocation Procedures, reopened the deadline for 
submittal of APD until July 5, 1996.
    Comment: Negotiations should begin as soon as possible.
    Response: Western agrees with this comment. Western interprets this 
comment as to when will Western negotiate contracts with new customers 
for firm electric service. Western intends to begin negotiating new 
contracts as soon as possible.
    Comment: One comment suggested that Greenfield, Iowa, should be 
eligible for a minimum allocation of 100 kW.
    Response: Only that portion of the Greenfield load within the P-
SMBP-ED marketing area is eligible for an allocation as part of this 
process. All criteria are applicable to that portion of Greenfield's 
load.
    Comment: We received comments about all customers, including Native 
American tribes, being included in future withdrawals for the creation 
of resource pools.
    Response: This was determined in Subpart C, Power Marketing 
Initiative, Paragraph 905.32 (d) of 60 FR 54151. The additional 
resource pool increments shall be established from the then existing 
customers.
    Comment: Western received a comment that allocations from the 4 
percent resource pool is not the only responsibility or obligation the 
Federal government has to Native American tribes.
    Response: This comment is beyond the scope of this public process. 
The 4 percent resource pool was established by the Program. This 
process is designed to allocate the 4 percent as set forth by the 
Program.
    Comment: Western received a comment that the qualifications for 
qualified applicants should be changed if necessary, such that the 
Bureau of Reclamation, as sponsor for the Mni Wiconi Project, meets the 
definition for qualified applicant.
    Response: Western intends to determine the Bureau of Reclamation 
eligibility based on the Final Post 2000 Resource Pool Allocation 
Procedures outlined below.

[[Page 41146]]

Final Post 2000 Resource Pool Allocation Procedures

I. Amount of Pool Resources

    Western will allocate up to 4 percent of the P-SMBP-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 will apply the following general eligibility criteria to 
applicants seeking an allocation of firm power under the Post 2000 
Resource Pool Allocation Procedures.
    A. All qualified applicants must be preference entities in 
accordance with section 9c of the Reclamation Project Act of 1939, 43 
U.S.C. 485h(c), as amended and supplemented.
    B. All qualified applicants must be located within the currently 
established P-SMBP-ED marketing area.
    C. All qualified applicants must not be currently receiving 
benefits, directly or indirectly, from a current P-SMBP-ED firm power 
allocation. Qualified Native American applicants are not subject to 
this requirement.
    D. Qualified utility and nonutility applicants must be able to use 
the firm power directly or be able to sell it directly to retail 
customers.
    E. Qualified utility applicants that desire to purchase power from 
Western for resale to consumers, including municipalities, 
cooperatives, public utility districts, and public power districts must 
have utility status by December 31, 1996. Utility status means 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. Sec. 450b, as amended.

III. General Allocation Criteria

    Western will apply the following general allocation criteria to 
applicants seeking an allocation of firm power under the 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 the Federal 
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 P-SMBP-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 
P-SMBP-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.
    E. Allocations made to qualified utility and nonutility applicants 
will be based on the loads experienced in the 1994 summer season and 
the 1994-95 winter season. Western will apply the Post-1985 Marketing 
Plan criteria to these loads.
    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 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 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 qualified utility and nonutility 
applicants shall be 5,000 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 will apply the following general contract principles to all 
applicants receiving an allocation of firm power under the 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 for new project 
pumping requirements, by giving a minimum of 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 5 years notice in 
response to changes in hydrology and river operations. Any such 
adjustments shall only take place after a public process.
    C. Western shall assist the allottee in obtaining third-party 
transmission arrangements for delivery of firm power allocated under 
these procedures to new customers; nonetheless, each allottee is 
ultimately responsible for obtaining its own delivery arrangements.
    D. Contracts entered into under the 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 procedures shall 
incorporate Western's standard provisions for power sales contracts, 
integrated resource planning, and the general power contract 
provisions.

VI. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (Act), 
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 this rulemaking relates to services offered by Western, 
and, therefore, is not a rule within the purview of the Act.

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 requested input regarding the identification of any 
additional environmental issues both in the Federal Register at 61 FR 
2817, January 29, 1996, and at the public meetings. No environmental 
comments were received. Therefore, Western has determined that

[[Page 41147]]

the analysis in the Program Environmental Impact Statement is 
sufficient for this action and current DOE regulations indicate that no 
further National Environmental Policy Act documentation is required.

IX. 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 OMB is required.

    Issued at Washington, D. C. on July 30, 1996.
Joel K. Bladow,
Assistant Administrator.
[FR Doc. 96-20078 Filed 8-6-96; 8:45 am]
BILLING CODE 6450-01-P