Federal Register, Volume 62 Issue 38 (Wednesday, February 26, 1997)

[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Notices]
[Pages 8710-8721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4695]

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DEPARTMENT OF ENERGY

Proposed 2004 Power Marketing Plan

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed plan.

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SUMMARY: The Western Area Power Administration's (Western) Sierra
Nevada Customer Service Region (Sierra Nevada Region) has developed a
Proposed 2004 Power Marketing Plan (Proposed Plan). The Proposed Plan
provides for marketing power from Central Valley Project (CVP) and
Washoe Project powerplants after the year 2004. Western currently
markets about 1,580 megawatts (MW) of CVP power under long-term
contracts to 80 preference customers in northern and central
California. Western also markets 3.65 MW of Washoe Project power. On
December 31, 2004, all of Western's long-term CVP power sales contracts
will expire, along with Contract 14-06-200-2948A (Contract 2948A) with
the Pacific Gas and Electric Company (PG&E) for the sale, interchange
and transmission of electric capacity and energy. Western has developed
the Proposed Plan to define the products and services to be offered,
and the eligibility and allocation criteria that will lead to
allocations of CVP and Washoe Project power beyond the year 2004. This
Federal Register notice initiates the Administrative Procedure Act
process that gives the public an opportunity to participate in
administrative rulemaking for marketing of this power by Western after
the year 2004, and requests public comment.

DATES: On April 8, 1997, beginning at 10 a.m., Western will hold a
public information forum on the Proposed Plan. At the information
forum, Western representatives will present the Proposed Plan and
respond to questions from the public. On April 24, 1997, beginning at 1
p.m., Western will hold a public comment forum to receive oral and
written comments on the Proposed Plan. Each forum will be held at the
Sierra Nevada Regional Office, 114 Parkshore Drive, Folsom, California.
Oral or written comments may be presented at the public comment forum.
A transcript of oral comments made at this forum will be available from
the court reporter. Written comments on the Proposed Plan will be
accepted from the date of publication of this Federal Register notice
through May 27, 1997.

ADDRESSES: Written comments may be hand-delivered, mailed, or faxed to
the address provided below. Comments must be received by 5 p.m. PDT or
postmarked on May 27, 1997 to assure consideration. Inquiries and
written comments regarding the Proposed Plan should be directed to:
James C. Feider, Regional Manager, Western Area Power Administration,
Sierra Nevada Region, 114 Parkshore Drive, Folsom, CA 95630-4710, (916)
353-4418, (916) 985-1931 FAX.
All documentation developed or retained by Western for the purpose
of developing the Proposed Plan will be available for inspection and
copying at the address below.

FOR FURTHER INFORMATION CONTACT: Zola M. Jackson, Power Marketing
Manager, Western Area Power Administration, Sierra Nevada Region, 114
Parkshore Drive, Folsom, CA 95630-4710, (916) 353-4421.
After all public comments have been considered, Western will
publish a Final 2004 Power Marketing Plan (Final Plan) in the Federal
Register.

[[Page 8711]]

SUPPLEMENTARY INFORMATION:

Authorities

The Sierra Nevada Region developed this Proposed Plan in accordance
with its power marketing authorities in the Federal Reclamation laws,
the Act of June 17, 1902 (32 Stat. 388), the Act of August 4, 1939 (53
Stat. 1187); the Act of April 8, 1935 (49 Stat. 115), the Act of June
22, 1936 (49 Stat. 1622), the Act of August 26, 1937 (50 Stat. 844),
the Act of October 17, 1940 (54 Stat. 1198), the Act of December 22,
1944 (58 Stat. 887), Act of October 14, 1949 (63 Stat. 852), the Act of
September 26, 1950 (64 Stat. 1036), the Act of August 12, 1955 (69
Stat. 719), the Act of August 1, 1956 (70 Stat. 775), the Act of June
3, 1960 (74 Stat. 156), the Act of October 23, 1962 (76 Stat. 1173),
the Act of September 2, 1965 (79 Stat. 615), the Act of August 4, 1977
(91 Stat. 565), and the Act of July 16, 1984, including all acts
amendatory and/or supplementary to the above listed.

Development of the Proposed Plan

Western is developing the Proposed Plan to define: (1) the products
and services to be offered, and (2) the criteria for allocating power
resources to be marketed under contracts that will replace those
expiring on December 31, 2004.
Development of the Proposed Plan was initiated with a series of
three informal public information meetings held on November 17, 1995,
March 7, 1996, and May 13, 1996. These meetings began informal
discussions to identify pertinent issues and possible marketing
options, including products and services and eligibility and allocation
criteria, to be included in the Proposed Plan. During the informal
process, Western evaluated several options for marketing power after
termination of existing contracts. Western's proposal provides each
customer a right to customize its power allocation from Western. This
will provide a customer the flexibility to optimize the use of Western
power.
Western is also proposing to offer a resource extension to existing
customers and to offer a portion of the resource to new customers.
Western believes its Proposed Plan provides a balance between existing
and new customers, while meeting its contractual obligations that
continue beyond 2004.
As explained in the DATES section of this notice, Western will hold
public information and comment forums on the Proposed Plan. After
consideration of all public comments, Western will publish notice of
the Final Plan in the Federal Register. With that notice, Western will
also announce its decisions regarding power resource extensions to
existing customers and call for applications for new allocations. The
deadline for receipt of applications will be set forth in the call for
applications. Western will then consider the applications, determine
which applications meet the requirements of the Final Plan, and
exercise its discretion provided by law in allocating the power to
eligible applicants. Proposed and final allocations will subsequently
be published in the Federal Register.
To implement the Proposed Plan, the level of power resources to be
marketed must be determined. Determining levels of power resources to
be marketed and subsequently entering into contracts for the delivery
of related products and services could be a major Federal action with
potentially significant impacts on the human environment. Therefore, an
Environmental Impact Statement (EIS) process was initiated on the 2004
Power Marketing Program with a Federal Register notice published at 58
FR 42536 and 43105, on August 10 and 13, 1993, respectively, in
compliance with the National Environmental Policy Act of 1969 (NEPA)
(42 U.S.C. 4321, et seq.), as amended, and associated implementing
regulations. Following several public meetings, a draft EIS was
prepared. The draft EIS described the environmental consequences of a
range of reasonable marketing plan alternatives and identified no
significant impacts. A Federal Register notice was published on May 24,
1996 (61 FR 26174) announcing that the draft EIS was available for
public review and comment. Also, Western held a public hearing on June
13, 1996 to receive formal comments on the draft EIS, with a July 31,
1996 deadline for receipt of written comments. A final EIS is expected
to be completed by March 1997, and a Record of Decision is tentatively
scheduled to be published in April 1997. The Final Plan will
incorporate decisions made as a result of the findings of the final
EIS.
The schedule for the Proposed Plan was developed to recognize
Western's responsibility to its customers to provide: (1) necessary
planning time (approximately 5 years after final contract commitments)
for customers to acquire new power resources should their allocation of
CVP power change; (2) sufficient time for Western's Sierra Nevada
Region or its customers to negotiate contracts for control area
services, third-party transmission, and supplemental power supplies;
and (3) time to meet with each customer to design a product/service
package prior to the customer making a final commitment.
The Proposed Plan also incorporates the intent of the Final Rule
for the Energy Planning and Management Program (EPAMP) (10 CFR part
905), published by Western on October 20, 1995 at 60 FR 54151. The
EPAMP Final Rule became effective on November 20, 1995. EPAMP
implements Section 114 of the Energy Policy Act of 1992, and requires
Western's customers to prepare Integrated Resource Plans (IRP). The
Power Marketing Initiative (PMI) of EPAMP provides a framework for
extending a major portion of the power available at the time current
contracts expire to existing customers, and for establishing project-
specific resource pools. During the public process for EPAMP, it was
determined that application of the PMI to the CVP would be evaluated
during the 2004 Power Marketing Plan public process.

Background

The CVP is a large water and power system, initially authorized by
Congress in 1935, which covers approximately one-third of the State of
California. Legislatively defined purposes set the priorities for the
CVP as: (1) river regulation; (2) improvement of navigation; (3) flood
control; (4) irrigation; (5) domestic uses; and (6) power. In addition,
the CVP Improvement Act of 1992 added fish and wildlife habitat as a
priority to the list of CVP purposes.
The CVP power facilities include 11 powerplants with a maximum
operating capability of about 2,044 MW, and an estimated average annual
generation of 4.6 million megawatthours (MWh). The U.S. Department of
the Interior, Bureau of Reclamation (Reclamation) operates the water
control and delivery system and all of the powerplants with the
exception of the San Luis Unit, which is operated by the State of
California for Reclamation. Western markets and transmits the power
available from the CVP.
Western owns the 94 circuit-mile Malin-Round Mountain 500-kilovolt
(kV) transmission line (an integral section of the Pacific Northwest-
Pacific Southwest Intertie (Pacific Intertie)), 803 circuit miles of
230-kV transmission line, 7 circuit miles of 115-kV transmission line
and 44 miles of 69-kV and below transmission line. Western also has
part ownership in the 342-mile California-Oregon Transmission Project
(COTP). Some of Western's existing customers have no direct access to
Western's transmission lines and receive service over transmission
lines owned by other utilities.

[[Page 8712]]

Western has historically combined output from CVP hydroelectric
facilities with supplemental power from a number of other power
resources. This has enabled Western to enhance the CVP power resources
and to market an amount of firm power to its customers that would not
be available solely from CVP facilities in all years. A portion of this
supplemental power has been transmitted over the COTP and Pacific
Intertie.
The Washoe Project was authorized by Congress in 1956 and is a
separate project from the CVP. The Washoe Project, located in west-
central Nevada and east-central California, was designed to regulate
runoff from the Truckee and Carson rivers and to enhance irrigation;
water drainage; municipal, industrial, and fisheries uses; and provide
flood protection; fish and wildlife habitat; and recreation. The Washoe
Project includes Prosser Creek Dam and reservoir; Stampede Dam,
reservoir, and powerplant; Marble Creek Dam; and Pyramid Lake Fishway.
The Stampede Powerplant, located in Sierra County, California, was
completed in 1987, and has a maximum operating capability of 3.65 MW
with an estimated annual generation of 10,000 MWh. Sierra Pacific Power
Company (SPPC) owns and operates the only transmission system available
for distribution of power generated at the Stampede Powerplant.

History of Central Valley Project Power Allocations

Power was first generated in the CVP at the Shasta Powerplant in
1944. Formal allocations of 450 MW of CVP power were first made in
1952. In 1964, with the addition of the Trinity River Division
facilities, allocations to preference customers were increased to 925
MW. In 1967, under terms of Contract 2948A, power imports over the
Pacific Intertie (Northwest imports) were incorporated along with
provisions for load level increases up to 985 MW in 1975 and up to
1,050 MW in 1980.
Later in 1980, the load level was increased by 102 MW to 1,152 MW.
This increase in allocations was accomplished under the 1981 Power
Marketing Plan (47 FR 4139) dated January 28, 1982. New customers
received 26 MW of nonwithdrawable power and 42 MW of withdrawable power
for a total of 68 MW, with 4 MW of withdrawable power left unallocated.
Also, diversity power allocations of 30 MW were made to those customers
who could shed load during Sierra Nevada Region's system simultaneous
peak.
During the same time period, SMUD challenged Western's right to
meld the costs of Northwest imports into CVP power rates charged to
SMUD. In a 1983 settlement, it was agreed that SMUD would pay the
melded CVP power rates; SMUD's electric service contract, due to expire
in 1994, would be extended to 2004; and SMUD would have the right to
purchase 100 MW of peaking capacity through 2004. Further, SMUD would
have the right to purchase a portion of the power to be marketed from
2005 to 2014.
Under the 1994 Power Marketing Plan (57 FR 45782 and 58 FR 34579)
dated October 5, 1992 and June 28, 1993, respectively, existing
customers with contracts expiring in 1994 were allocated 501 MW, and
approximately 8 MW was allocated to new customers.
In addition to the power marketed in the 1994 Power Marketing Plan,
total power under existing contracts includes approximately 910 MW of
long-term firm power, 100 MW of peaking capacity, and 60 MW of
withdrawable power, for a total of about 1,580 MW. See Appendix A of
this notice for Existing Customers' CRD Amounts.
On November 30, 1993, the National Defense Authorization Act (NDA
Act) was signed into law. This act provides that, for a 10-year period,
the CVP electric power allocations to military installations in the
State of California which have been closed or approved for closure
shall be reserved for sale through long-term contracts to preference
entities which agree to use such power to promote economic development
at the military installations closed or approved for closure. On
December 1, 1994, Western published the final NDA Act procedures
developed to fulfill the requirements of section 2929 of the NDA Act
(59 FR 61604). To date, about 42 MW of long-term firm power and about 9
MW of withdrawable power under contract to military installations being
closed has been converted to NDA Act power.

History of Washoe Project (Stampede Powerplant) Allocations

Pursuant to Final Allocation of Stampede Powerplant Power (50 FR
43456) dated October 25, 1985, Western allocated all the energy
generated at Stampede Powerplant in excess of that needed to serve
project use (Lahontan Fish Hatchery and Marble Bluff Fish Facility) to
Truckee-Donner Public Utility District. Because Truckee-Donner was
unable to obtain transmission service, it was unable to enter into a
contract with Western to receive Stampede energy. In 1988, Western
rescinded the allocation of Stampede energy to Truckee-Donner and
marketed Stampede energy to SPPC under short-term agreements.
In 1990, Western began conducting a bidding process for the sale of
Stampede energy, giving priority to preference entities. Since no
preference entity met the bidding criteria, SPPC continued to purchase
Stampede energy under short-term agreements.
In April 1994, Western executed agreements with SPPC and the Fish
and Wildlife Service (F&WS) which established a mechanism to provide
project use service to the F&WS facilities. These agreements also
provide Western the option to market and transmit all energy, in excess
of that which is required to provide project use service, outside of
SPPC's control area.

Regulatory Procedure Requirements

Regulatory Flexibility Analysis

Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601,
et seq.), each agency, when required to publish a proposed rule, is
further required to prepare and make available for public comment an
initial regulatory flexibility analysis to describe the impact of the
proposed rule on 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) an allocation of power
from Western would not cause an adverse economic impact to 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.

Environmental Compliance

In compliance with NEPA (42 U.S.C. 4321, et seq.), Council on
Environmental Quality NEPA implementing regulations (40 CFR parts 1500-
1508), and DOE NEPA implementing regulations (10 CFR part 1021),
Western completed an environmental impact statement on EPAMP. The
Record of Decision was published in the Federal Register on October 12,
1995 (60 FR 53181). Additionally, as described in the Supplementary
Information Section of this notice, Western and the Environmental
Protection Agency announced the availability of Western's draft EIS on
the 2004 Power Marketing Program in Federal Register notices published
on May 24, 1996 (61 FR

[[Page 8713]]

26174 and 26178, respectively). The draft EIS described the
environmental consequences of a range of reasonable marketing plan
alternatives and identified no significant impacts. The Proposed Plan
falls within the range of alternatives considered. This NEPA review
will assure all environmental effects related to Western's Proposed
Plan have been identified and analyzed.
CVP and Washoe electrical capacity and energy to be marketed is
influenced by available reservoir storage and water releases controlled
by Reclamation within the CVP in California. Pursuant to Title 34 of
Public Law 102-575, the CVP Improvement Act of 1992, Reclamation is
preparing a Programmatic Environmental Impact Statement (PEIS)
addressing improvements to fish and wildlife habitat stipulated in
Public Law 102-575, and potential changes in CVP operations and water
allocations to meet those obligations. The draft PEIS may result in
modifications to CVP facilities and operations that would affect the
timing and quantity of electric power generated by the CVP. Such
changes may, in turn, affect electric power products and services to be
marketed by Western. This Proposed Plan is designed to accommodate
these changes. Western is a cooperating agency in Reclamation's PEIS.

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.

Determination Under Executive Order 12866

DOE has determined that the Proposed Plan 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.

Proposed 2004 Power Marketing Plan

This Proposed Plan addresses: (1) the power to be marketed after
2004; (2) the terms and conditions under which the power will be
marketed; and (3) the criteria to determine who will receive an
allocation.
Within broad statutory guidelines and operational constraints of
the CVP, Western has wide discretion as to whom and on what terms it
will contract for the sale of Federal power as long as preference is
accorded to statutorily defined public bodies. Power must be sold in
such a manner as will encourage the most widespread use at the lowest
possible rates consistent with sound business principles.

I. Acronyms and Definitions

As used herein, the following acronyms and terms, whether singular
or plural, shall have the following meanings:
Administrator: The Administrator of Western Area Power
Administration.
Allocation: An offer to an entity to purchase power from Western.
Allocation Criteria: Conditions applied to all applicants seeking
an allocation.
Allottee: A preference entity receiving an allocation or power
resource extension.
Ancillary Services: Those services necessary to support the
transfer of electricity while maintaining reliable operation of the
transmission provider's transmission system in accordance with good
utility practice. Ancillary services are generally described in Federal
Energy Regulatory Commission Order No. 888, Docket Nos. RM95-8-000 and
RM94-7-001, issued April 24, 1996.
Base Resource: CVP and Washoe Project power output and existing
power purchase contracts extending beyond 2004 determined by Western to
be available for marketing, exclusive of project use and First
Preference entitlements.
Capacity: The electrical capability of a generator, transformer,
transmission circuit or other equipment.
Central Valley Project (CVP): A multipurpose Federal water
development project extending from the Cascade Range in northern
California to the plains along the Kern River south of the City of
Bakersfield.
Contract Principles: Provisions made part of the electric service
contracts which include the General Power Contract Provisions.
Contract Rate of Delivery (CRD): The maximum amount of capacity
made available to a preference customer for a period specified under a
contract.
Curtailable Power: Power which may be curtailed on a real-time
scheduling basis at Western's sole discretion under certain conditions.
Custom Product: A combination of products and services, excluding
provisions for load growth, made available by Western per customer
request, utilizing the customer's Base Resource and supplemental
purchases made by Western at customer expense.
Customer: An entity with a contract and receiving electric service
from Western's Sierra Nevada Region.
Diversity Power: Power made available because of the diversity of
customers' peak demands at the time of Sierra Nevada Region's peak
demand.
Eligibility Criteria: Conditions that must be met to qualify for an
allocation.
Energy: Measured in terms of the work it is capable of doing over a
period of time; electric energy is usually measured in megawatthours.
Energy Planning and Management Program (EPAMP): Western-wide
program developed to encourage customer energy planning (60 FR 54151,
dated October 20, 1995).
Existing Customer: A preference customer with a contract to
purchase firm power, offered under a previous allocation process or
marketing plan, that extends through December 31, 2004.
Extension CRD: Existing customer's CRD exclusive of Diversity and
Curtailable Power, peaking/excess capacity, and NDA Act Power not used
for military loads.
Final Plan: Western's Final 2004 Power Marketing Plan.
Firm: A type of product and/or service that is available to a
customer at the times it is required.
First Preference Customer/Entity: A preference customer and/or a
preference entity (an entity qualified to use, but not using preference
power) within a county of origin (Trinity, Calaveras and Tuolumne) as
specified under the Trinity River Division Act (69 Stat. 719) and the
New Melones Act of the Flood Control Act of 1962 (76 Stat. 1180).
General Power Contract Provisions (GPCP): Standard terms and
conditions which are included in electric service contracts.
Integrated Resource Plan (IRP): A process and framework within
which the costs and benefits of both demand and supply-side resources
are evaluated to develop the least total cost mix of utility resource
options.
Kilowatt (kW): The electrical unit of capacity that equals one
thousand watts.
Load Factor: The ratio of the average load in kW supplied during a
designated period to the peak or maximum load in kW occurring in that
period.
Long-Term: A designation for a contractual period of time greater
than 5 years.
Marketing Area: The area which generally encompasses northern and
central California extending from the Cascade Range to the Tehachapi
Mountains and west-central Nevada.
Megawatt (MW): The unit by which the rate of production of
electricity is

[[Page 8714]]

often measured; one megawatt equals one million watts.
NDA Act: Section 2929 of the National Defense Authorization Act,
Public Law 103-160, 107 Stat. 1547, 1935 (1993), which provides that,
for a 10-year period, the CVP electric power allocations to military
installations in the State of California which have been closed or
approved for closure shall be reserved for sale through long-term
contracts to preference entities which agree to use such power to
promote economic development at the military installations closed or
approved for closure.
NDA Act Power: Power allocated in accordance with the NDA Act
Procedures (59 FR 61604, dated December 1, 1994), which provide for NDA
Act power allocations.
Peaking: The operation of electric powerplants for brief periods
when demand for electricity is greatest.
Power: Capacity and energy.
Power Marketing Initiative (PMI): A component of Western's EPAMP
providing criteria regarding certain Western power marketing programs.
Preference: The requirements of Reclamation law which provide that
preference in the sale of Federal power shall be given to
municipalities and other public corporations or agencies and also to
cooperatives and other nonprofit organizations financed in whole or in
part by loans made pursuant to the Rural Electrification Act of 1936
(Reclamation Project Act of 1939, section 9(c), 43 U.S.C. 485h(c)).
Project Use: Power as defined by Reclamation law and/or used to
operate CVP and Washoe Project facilities.
Proposed Plan: Western's Proposed 2004 Power Marketing Plan.
Reclamation law: Refers to a series of Federal laws with a lineage
dating back to the turn of the century. Viewed as a whole, these laws
create the framework under which Western markets power.
Sierra Nevada Region: The Sierra Nevada Customer Service Region of
Western Area Power Administration.
Unbundled: Electric service that is separated into its components
and offered for sale with separate rates for each component.
Washoe Project: A Federal water project located in the Lahontan
Basin in west-central Nevada and east-central California.
Western: Western Area Power Administration, United States
Department of Energy, a Federal power marketing administration
responsible for marketing the surplus generation from Federal
hydroelectric multipurpose projects pursuant to Reclamation law and the
DOE Organization Act (91 Stat. 565, 42 U.S.C. 7101, et seq.).
Withdrawable: Power that may be withdrawn under certain conditions.

II. Marketable Power Resource

The primary purpose of the CVP and Washoe Project is water control
and delivery. The water control system consists of storage reservoirs
that provide daily, seasonal, and annual flow regulation, and smaller
regulating reservoirs for diverting water and smoothing upstream dam
and powerplant releases. Power generated from these resources depends
on hydrology and water operation requirements. Some of the power
generated is used for project use to operate pumping and fishery
facilities. Currently, project use power is metered at 181 locations in
northern and central California and Nevada.
Expected CVP generation (energy and capacity) for 2005 and beyond
will vary annually, monthly, and daily, based on hydrology and other
constraints that govern CVP operations. CVP generation is available at
generator bus and must be adjusted for project use, maintenance,
reserves, transformation losses, and certain ancillary services before
a Base Resource is available for marketing. Transmission losses will be
pursuant to the terms of a transmission service agreement. The power
resources will also be adjusted for First Preference customers as
described in this Proposed Plan.
The following Table provides estimates of CVP power resources and
adjustments before any power resources are available to customers
beyond 2004:

Table A.--Estimated CVP Power Resources and Adjustments
----------------------------------------------------------------------------------------------------------------
Power resources/adjustment Range/value
----------------------------------------------------------------------------------------------------------------
Annual energy generation.................... 2,400,000-8,600,000 MWh.
Monthly energy generation................... 100,000-1,100,000 MWh.
Monthly capacity............................ 1,100-1,900 MW.
Annual project use.......................... 670,000-1,670,000 MWh.
Monthly project use......................... 10,000-180,000 MWh.
Monthly project use (on peak)............... 30-230 MW.
Monthly maintenance......................... 0-300 MW.
Reserves.................................... 5% of monthly capacity.
CVP transmission and transformation losses 1.8% (as of 1995).
from the generator bus to a 230-kV load bus.
----------------------------------------------------------------------------------------------------------------

All of the power resource adjustments and variables mentioned above
will influence the amount of Base Resource available to customers.
During some critically dry months, purchases may be required to meet
project use and only a minimal amount of Base Resource will be
available during such months. The useability of the Base Resource for
meeting customers'' loads will be directly related to a customer's
ability to integrate this power resource into their power resource mix.
Western proposes to include any power available from existing power
purchase contracts with terms extending beyond 2004 in the Base
Resource. Currently, Western has a contract with Portland General
Electric Company for 65 MW at a 40 percent minimum load factor that has
a final termination date of October 15, 2015.
Western also proposes to market part of the 3.65 MW available from
the Washoe Project with the CVP power resource on an annual basis.
Energy from the Washoe Project, which is estimated to be about 10,000
MWh annually, is currently being provided to F&WS Lahontan National
Fish Hatchery and Marble Bluff Fish Facility. These F&WS facilities are
project use loads of the Washoe Project and have first call on the
power resources from the Washoe Project. All costs associated with
providing F&WS project use service are, by law, nonreimbursable, and
are not included in the Washoe Project energy rates. Energy in excess
of the F&WS needs will be sold under the Final Plan.
Western will continue to make every effort to provide the Washoe
Project power resource to F&WS. F&WS is currently using approximately
50

[[Page 8715]]

percent of Washoe Project generation, and the same percentage of costs
is considered nonreimbursable. Western expects that F&WS loads will
increase, reducing the amount of power resource to be integrated with
the CVP as well as the cost to be repaid from power revenues.

III. Products and Services

Western proposes to market its Base Resource alone or in
combination with the option to purchase a Custom Product. The Custom
Product will be in addition to the optional purchase described in
Section IV.A.2. All costs incurred by Western in providing additional
services to customers will be paid by those customers. The degree to
which Western continues to purchase power will depend on customer
requirements and Federal authorities. All products will be subject to
operational requirements and constraints of the CVP, transmission
availability, and purchase limitations.
Each allottee will be allocated a portion of the Base Resource.
Following execution of a contract pursuant to the Final Plan, Western
will work with each individual allottee to determine the best use of
the Base Resource for that allottee. All allottees will be required to
commit to the Base Resource no later than December 31, 1999.
Upon request, Western will develop a Custom Product for any
allottee. A Custom Product may include use of the Base Resource as firm
power, ancillary services, reserves, etc., or may include Western
purchasing additional resources, including firming energy, to provide
some of these services. Final commitments to a Custom Product must be
made by December 31, 2001, for a period of no less than five (5) years
of service. Thereafter, the Custom Product will be offered for periods
of one (1) year or more.
Any unused power resource available will be marketed under terms
and conditions and for periods of time determined by Western. Products
and services from unused power resources may be made available on a
monthly, weekly, daily, hourly, or nonfirm basis.
Western may offer unused First Preference power, subject to
withdrawal on a pro-rata basis, upon six (6) months written notice.
Western proposes to establish and to manage an exchange program to
allow all customers to fully and efficiently use their power
allocation. Any power allocated by Western to a customer that cannot be
used on a real-time basis due to that customer's load profile must
first be offered under this program to other customers or Western.
Western will not be obligated to exchange or to purchase any surplus
power from the customers on its own behalf. If the surplus power is not
exchanged with other customers or purchased by Western under this
program, it may be offered to others, giving priority to preference
entities.

IV. Proposed Resource Extension and Resource Pool Allocation

On December 31, 2004, Western's long-term CVP power sales contracts
for 1,580,230 kilowatts (kW) will expire. This Proposed Plan addresses
the eligibility for and allocation of CVP and Washoe Project power
after these contracts expire. When allocating power under the Final
Plan, Western proposes to apply the principles of the Power Marketing
Initiative (PMI) of the Energy Planning and Management Program. In
accordance with the PMI, Western proposes to set aside a portion of its
available power resource for new allocations. Based on Western's
evaluation of potential new loads, Western proposes to initially
provide 96 percent of its available power resource to existing
customers and to establish a resource pool for new allocations with the
remaining 4 percent. An additional incremental resource pool of up to 2
percent is proposed for 2014. When calculating the 96 percent resource
extension for existing customers, only CRD classified as Extension CRD
will be considered. Also, no extensions will be greater than an
existing customer's load. Extension CRD amounts are set forth in
Appendix A. Contractual extensions to First Preference customers are
subject to specific legislation and are addressed in Section VI.

A. Extension for Existing Customers

Western proposes that existing customers will have a right to
purchase a percentage of the Base Resource based on the ratio of each
existing customer's Extension CRD to the total of all existing
customers'' Extension CRD under the terms of this Section. However, for
the period from 2005 through 2014, Western is proposing that SMUD will
have a right to purchase 360/1,152 of the Base Resource, as referenced
in the settlement agreement with SMUD, Contract DE-MS65-83WP59070,
dated April 15, 1983. All other existing customers will have a right to
purchase the remaining amount of the Base Resource, after it is
adjusted to accommodate SMUD's rights and the resource pool. After
2014, SMUD's right to purchase the Base Resource will be adjusted to
reflect the ratio of SMUD's Extension CRD (currently 361 MW) to the
total of all existing customers'' Extension CRD. SMUD's rights will
also be adjusted by 4 percent and up to an additional 2 percent to
accommodate the resource pool.
Due to the diversity among existing customers' loads, including
SMUD, existing customers' total Extension CRD exceeds the 1,152 MW
referenced in the SMUD settlement agreement. Western's proposal will
result in SMUD receiving a proportionately greater share of the Base
Resource than other existing customers if the total Extension CRD
remains at a level greater than 1,152 MW. Therefore, Western is also
proposing that through 2014, all existing customers, excluding SMUD, be
given the option to have Western purchase an additional increment of
power, on a pass-through-cost basis, equal to the amount of power
unavailable to them as a result of application of the 360/1,152 ratio.
Existing customers must commit to the optional purchase for an annual
or greater period.
After 2014, each existing customer, including SMUD and those
customers that receive a new allocation under the Final Plan, will have
a right to purchase a pro-rata amount of the Base Resource, adjusted
for the incremental resource pool, based on their long-term purchase
right to the Base Resource.
Western proposes the following extension formulas to determine
existing customers' purchase right to the Base Resource. Application of
these formulas will also determine each existing customer's right to
the optional purchase. Examples of the formulas are provided in
Appendix B. This calculation may be further adjusted for First
Preference customers.
1. For the period 2005 through 2014, existing customers purchase
right to an extension resource will be calculated as follows:

[[Page 8716]]

[GRAPHIC] [TIFF OMITTED] TN26FE97.001

Where:

A = Lesser of individual existing customer's Extension CRD as of
December 31, 2001; or 104 percent of their maximum demand during CY
1997 through 2000. Western reserves the right to adjust the value of
``A'' when it is determined that the maximum demand is not reflective
of an existing customer's load.
B = The sum of all values for ``A''.
BR = Base Resource available.
ABR = Adjusted Base Resource
[GRAPHIC] [TIFF OMITTED] TN26FE97.002

RP% = Resource pool percentage.

2. Existing customer's (excluding SMUD) right to the optional
purchase will be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN26FE97.003

Where:

TOP = Total Optional Purchase
[GRAPHIC] [TIFF OMITTED] TN26FE97.004

A = Lesser of individual existing customer's Extension CRD as of
December 31, 2001; or 104 percent of their maximum demand during CY
1997 through 2000. Western reserves the right to adjust the value of
``A'' when it is determined that the maximum demand is not reflective
of an existing customer's load.
B = The sum of all values for ``A''.
BR = Base Resource available.
RP% = Resource pool percentage.
C = The sum of all existing customers', including SMUD, Extension CRD.

Western and SMUD have been negotiating an agreement whereby SMUD
would waive its rights to the 360/1,152 ratio in return for additional
services through 2004. If such an agreement is reached, these formulas
will be appropriately adjusted.
3. For the period 2015 through 2024, the rights of all existing
customers, including SMUD and customers receiving a new allocation from
the initial resource pool under the Final Plan, will have a right to a
resource extension equal to their pro-rata share of the Base Resource.
To determine a customer's pro-rata share, each customer's percentage
will first be adjusted based on the change in SMUD's percentage
described earlier in this Section. All customers' percentages,
including SMUD, will then be adjusted to accommodate the incremental
resource pool as determined by Western, up to 2 percent.

B. Resource Pool Allocations:

Western proposes to establish a resource pool by reserving a
portion of the power available after 2004 for allocation to eligible
new and existing customers. Western will apply the following to
determine resource pool allocations.
1. Resource Pool Amount: The resource pool will initially consist
of up to 4 percent of the power resources available after 2004. This
power will be subject to the terms and conditions specified in an
electric service contract. An incremental resource pool is also
proposed in the year 2014. The proposed incremental resource pool will
consist of up to 2 percent of the power resources available after 2014,
plus a portion of the resource that becomes available from adjusting
SMUD's percentage. That portion will be equal to what SMUD would have
been required to contribute to the initial resource pool. SMUD will
also be subject to the 2 percent resource pool adjustment. Allocations
for the incremental resource pool will be determined through a separate
public process at a later date.
Western will, at its discretion, allocate a percentage of the
initial resource pool to individual applicants that meet the
eligibility criteria. This allocation percentage will be multiplied by
the resource pool percentage to determine the applicant's percentage of
the power resource. Allocations from the resource pool are separate
from the resource extension.
2. General Eligibility Criteria: The following general eligibility
criteria will be applied to all applicants seeking an allocation under
the Final Plan.
a. Applicants must meet the preference requirement under section
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), as
amended and supplemented.
b. Applicants must be located within Sierra Nevada Region's
Marketing Area. (Map of Marketing Area available upon request.)

[[Page 8717]]

c. Applicants that require power for their own use must be ready,
willing, and able to receive and use Federal power.
d. Applicants that provide retail electric service must meet the
requirements of Section IV.B.2.c above, and must require the power for
electric service to their customers, not for resale to others.
e. Applicants must submit an application in response to the notice
calling for applications issued by Western in the Federal Register in
conjunction with the Final Plan. That notice will include the deadline
for receipt of those applications.
f. 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).
g. Applicants must have a load of 1 MW or greater. Western will
normally not allocate amounts less than 1 MW; however, smaller
allocations may be considered, provided Western can aggregate the
applicant's load with other loads to schedule and deliver an aggregated
1 MW.
3. General Allocation Criteria: The following general allocation
criteria will be applied to all applicants seeking an allocation under
the Final Plan.
a. Allocations will be made in amounts as determined solely by
Western in exercise of its discretion under Reclamation law.
b. Allocations under the Final Plan will be available to new
qualified applicants and to existing customers whose Extension CRD set
forth in Appendix A is not more than 15 percent of their peak load in
CY 1996 and not more than 10 MW.
c. The maximum amount of capacity used to determine a resource pool
allocation will be the applicant's peak demand during CY 1996 or the
amount requested, whichever is less, rounded up to the nearest 100 kW.
d. An allottee will have the right to buy power from Western only
upon the execution of an electric service contract between Western and
the allottee, and satisfaction of all conditions in that contract.
e. A customer receiving power from the initial resource pool will
be subject to the incremental resource pool adjustment in 2014.

V. General Criteria and Contract Principles

Western proposes to apply the following criteria and contract
principles to all new and/or existing customers' contracts, except that
certain criteria may not apply to First Preference customers'
contracts, under the Final Plan:
A. Electric service contracts shall be executed within six (6)
months of a contract offer, unless otherwise agreed to in writing by
Western.
B. Percentages shall be subject to adjustment in the future as
provided for in the Final Plan and the electric service contract.
C. All power supplied by Western will be delivered pursuant to a
scheduling arrangement.
D. All power will be provided on a take-or-pay basis. A commitment
must be made to take-or-pay for the service as of the date set forth in
the contract. All costs associated with the products and services
provided, including ancillary services and optional purchases, will be
passed on to the customer(s) using the product or service.
E. Western will offer a contract amendment to existing customers
and a new contract to new allottees to implement the Final Plan.
Contract amendments and contracts shall require commitments to the Base
Resource by the customer on or before December 31, 1999, and the
optional purchase, as well as the Custom Product, on or before December
31, 2001. This will allow for power resources and products to be
developed prior to final commitment by the customer.
F. Withdrawable power marketed under the Final Plan will be subject
to withdrawal on a pro-rata basis upon six (6) months written notice,
as determined by Western.
G. Upon request, Western shall assist each allottee and existing
customer in obtaining third-party transmission arrangements for
delivery of power allocated under the Final Plan; nonetheless, each
entity is ultimately responsible for obtaining its own delivery
arrangements beyond the CVP transmission system.
H. Contracts entered into under the Final Plan shall provide for
Western to furnish electric service effective January 1, 2005 through
December 31, 2024.
I. Specific products and services may be provided for periods of
time as agreed to in the electric service contract.
J. Contracts entered into as a result of the Final Plan shall
incorporate Western's standard provisions for power sales contracts,
IRP, and GPCP.
K. Contracts will include a clause that allows Western to reduce or
rescind a customer's power from Western upon six (6) months notice if
Western determines that the customer is not using this power to serve
its own loads, except as otherwise specified in Section III.
L. Any power not under contract may be allocated by the
Administrator at any time, at the Administrator's sole discretion, or
sold as deemed appropriate by Western.
M. Contracts will include a clause providing for Western to adjust
the customers' percentage of the resource for the incremental resource
pool.

VI. First Preference Entitlement and Allocation

The Trinity River Division Act (69 Stat. 719) and the New Melones
Act of the Flood Control Act of 1962 (76 Stat. 1180) specified that
contracts for the sale and delivery of the additional electric energy
available from the CVP power system as a result of the construction of
the plants authorized by these acts and their integration into the CVP
system shall be made in accordance with preferences expressed in
Federal Reclamation laws. These acts also provided that a first
preference of 25 percent of the additional energy shall be given, under
Reclamation law, to preference customers in the counties of origin
(Trinity and Tuolumne and Calaveras) for use in those counties who are
ready, able and willing to enter into contracts for the energy.
In order to meet the requirements of these acts, Western published
the Final Withdrawal Procedures at 51 FR 7702 on March 5, 1986. The
Final Plan will supersede the Final Withdrawal Procedures.
Western proposes to calculate and allocate the Maximum Entitlements
of First Preference Customers (MEFPC), which is the maximum amount of
energy available to First Preference customers/entities, in accordance
with the following:
A. The MEFPC will be calculated separately for the New Melones
Project, Calaveras and Tuolumne counties, and the Trinity River
Division, Trinity County, (First Preference Projects), to determine the
25 percent of the additional energy made available to the CVP as a
result of the construction of each of these projects. Since the acts do
not specify the basis for calculating the 25 percent of additional
energy, Western proposes that a previous 20-year average historical
generation or actual years of data available, whichever time period is
less, be used to determine the MEFPC. Based on the most current
information available, this calculation would result in an estimated
MEFPC of 95,766 MWh available to the CVP as a result of construction of
the New Melones Project and an estimated MEFPC of 288,285 MWh available
to the CVP as a result of construction of the Trinity River Division.
The MEFPC will be

[[Page 8718]]

recalculated every five (5) years, with the initial recalculation
pertaining to this Proposed Plan being completed by December 31, 2002.
B. Upon recalculation, if the MEFPC from a First Preference Project
is 10 percent above or below the currently effective MEFPC from that
First Preference Project, the MEFPC will be adjusted to reflect that
increase or decrease. Western will notify the affected First Preference
customer(s) at least six (6) months prior to an adjustment being made
to the MEFPC. Upon request, and at its discretion, Western may make
purchases necessary to compensate for any power loss experienced by a
First Preference customer due to recalculation of the MEFPC. The costs
for all purchases made on behalf of a First Preference customer(s) will
be passed on to that First Preference customer(s).
C. An allocation made to a First Preference customer under the
Final Plan will be based on the power requirements of that First
Preference customer. The sum of allocations, including losses, shall
not exceed the MEFPC from each First Preference Project, or a county of
origin's share of the MEFPC, except as allowed under Section VI.G
below.
D. Following execution of a contract amendment or contract pursuant
to the Final Plan, Western will work with each First Preference
customer/entity to identify its power requirements and the best use of
the First Preference entitlement for that First Preference customer.
Each First Preference customer/entity may elect one of the options set
forth below.
1. Full Requirements: Power requirements (capacity and energy),
adjusted for project use and transformation and transmission losses
from the generation bus to the First Preference customer delivery
point, will be at the Base Resource rates. Western will provide the
First Preference customer full requirements up to its right to the
MEFPC. Adjustment for transmission losses shall include losses for CVP
transmission and third-party transmission. The contract between the
First Preference customer and Western will include the appropriate
losses and the load factor to be used to calculate the First Preference
customer's maximum capacity and energy.
2. Percentage: A portion of the MEFPC will be converted to a
percentage of the Base Resource. This option will be served on a take-
or-pay basis. Each First Preference customer selecting this percentage
allocation option will also be subject to the following:
a. A commitment to this option must be made no later than December
31, 2001. If a commitment is not made by December 31, 2001, the full
requirements option will be deemed chosen.
b. This option will be applied in a manner similar to that of the
other customers receiving a power allocation from the CVP.
c. The percentage allocation made to each First Preference customer
under the Final Plan will be applied to the power resource which has
been adjusted for project use and transformation and transmission
losses from the generation bus to the First Preference customer
delivery point, rounded up to the nearest 100 kW. Adjustment for
transmission losses shall include losses for CVP transmission and
third-party transmission.
d. The percentage calculation will be based on a First Preference
customer's load profile for the most recent 12 months preceding the
percentage calculation.
e. A First Preference customer may request an increase in its
percentage allocation by notifying Western in writing at least seven
(7) months in advance of the month in which the increase is to become
effective (increases in percentages are effective the first day of a
month).
E. A First Preference entity may exercise its rights to use a
portion of the MEFPC by providing written notice to Western at least
eighteen (18) months prior to the anniversary date of the First
Preference Project located in its county. Anniversary date means the
successive fifth year anniversary of the date the Secretary of the
Interior declared the availability of power from the powerplants in the
counties of origin. New applications for services to begin on January
1, 2005 under this Proposed Plan must be received eighteen (18) months
prior to January 1, 2002 (i.e., July 1, 2000) for Trinity County and
eighteen months prior to April 5, 2002 (i.e., October 5, 2000) for
Calaveras and Tuolumne counties. Other anniversary years applicable to
this Proposed Plan are 2007, 2012, 2017, and 2022.
F. If the request(s) of First Preference customers/entities for
power, including adjustments for project use and losses, becomes
greater than the MEFPC from that county's First Preference Project,
then Western will allocate the remaining MEFPC to the First Preference
customer(s)/entity(ies) first making a request for a power allocation.
G. Power allocated to First Preference customers/entities in
Tuolumne and Calaveras counties will be subject to the following
additional conditions:
1. Tuolumne and Calaveras counties shall each be entitled to one-
half of the New Melones Project MEFPC.
2. If First Preference customers in either Tuolumne County or
Calaveras County are not using their county's full one-half share, and
a First Preference customer/entity in the other county requests power
in an amount exceeding that county's one-half share, then Western will
allocate the unused power, on a withdrawable basis, to the requesting
First Preference customer/entity. Such power may be withdrawn for use
by a First Preference customer/entity in the county not using its full
one-half share upon six (6) months written notice from Western.
H. Trinity County is currently the sole recipient of the Trinity
River Division's First Preference rights.
I. For planning purposes, First Preference customers may be
required to provide forecasts and other information required by Western
as set forth in the electric service contract.
J. The general criteria and contract principles set forth in
Sections V.A, C, and F through J of this Proposed Plan will apply to
First Preference customers.

VII. Transmission Service

The Federal Energy Regulatory Commission (FERC) issued two closely
related final rules. The first rule, Order No. 888, issued April 24,
1996 (Docket Nos. RM95-8-000 and RM94-7-001), requires public utilities
owning, controlling, or operating transmission lines to file
nondiscriminatory open access tariffs that offer others the same
transmission service they provide themselves. The second rule, Order
No. 889, issued April 24, 1996 (Docket No. RM95-9-000), requires public
utilities to implement standards of conduct and an Open Access Same-
time Information System (OASIS) to share information about available
transmission capacity. Western has agreed to follow the spirit and
intent of FERC Orders 888 and 889. Therefore, Western proposes to
provide transmission services separately from power services. Sierra
Nevada Region's transmission capability will be offered as a separate
unbundled service to all preference customers receiving power pursuant
to the Final Plan. Each customer will have an option to purchase
transmission sufficient to deliver the maximum amount of power it
receives under the Final Plan. Surplus transmission will be available
to all

[[Page 8719]]

preference customers, as well as to other entities.

Issued in Washington, DC on February 19, 1997.
Joel K. Bladow,
Assistant Administrator.

Appendix A.--Existing Customers' CRD Amounts
------------------------------------------------------------------------
Extension CRD
CRD \1\ (as of ^{1 ^{2 (CRD less
Existing customers proposed plan excluded types
publication of power) ^{3 ^{4
date) (kW) (kW)
------------------------------------------------------------------------
Air Force--Beale........................ 21,575 21,575
Air Force--McClellan.................... 12,000 12,000
Air Force--Onizuka...................... 1,500 1,500
Air Force--Travis....................... 12,651 12,651
Air Force--Travis / David Grant Medical
Center................................. 4,000 4,000
Air Force--Travis Wherry Housing........ 1,400 1,400
Alameda, City of........................ 21,145 21,145
Arvin-Edison Water Storage District..... 30,000 30,000
Avenal, City of......................... 622 622
Banta-Carbona Irrigation District....... 3,700 3,700
Bay Area Rapid Transit District......... 4,000 4,000
Biggs, City of.......................... 4,200 4,200
Broadview Water District................ 500 500
Byron-Bethany Irrigation District....... 2,200 2,200
Calaveras Public Power Agency........... 7,000 ..............
California State University, Sacramento--
Nimbus................................. 40 40
Castle Joint Powers Authority........... 3,000 ..............
Cawelo Water District................... 500 500
Corrections--California State Prison-
Sacramento............................. 2,300 2,300
Corrections--Deuel Vocational Institute. 1,700 1,700
Corrections--Northern California Youth
Center................................. 1,700 1,700
Corrections--Sierra Conservation Center. 3,000 ..............
Corrections--Vacaville Medical Facility. 1,800 1,800
Defense Logistics Agency--Sharpe
Facility............................... 4,000 4,000
Defense Logistics Agency--Tracy Facility 3,800 3,800
Delano-Earlimart Irrigation District.... 987 987
East Bay Municipal Utility District..... 1,965 1,965
East Contra Costa Irrigation District... 2,000 2,000
East Contra Costa Irrigation District,
P.P. ^{#3................................ 500 500
Energy--Lawrence Berkeley National
Laboratory............................. 11,000 11,000
Energy--Lawrence Livermore National
Laboratory............................. 16,711 16,711
Energy--Site 300........................ 2,500 2,500
Energy--Stanford Linear Accelerator
Center................................. 47,403 38,403
Glenn-Colusa Irrigation District........ 3,343 3,343
Gridley, City of........................ 9,400 9,400
Healdsburg, City of..................... 3,241 3,241
James Irrigation District............... 987 987
Kern-Tulare Water District.............. 987 987
Lassen Municipal Utility District....... 3,000 3,000
Lindsay-Strathmore Irrigation District.. 987 987
Lodi, City of........................... 13,236 13,236
Lompoc, City of......................... 5,197 5,197
Lower Tule River Irrigation District.... 1,965 1,965
Modesto Irrigation District............. 10,805 10,805
NASA--Ames Research Center.............. 80,000 80,000
NASA--Moffett Federal Airfield.......... 5,009 ..............
Navy--Concord Weapons Station........... 2,398 2,398
Navy--Dixon Radio Station............... 915 915
Navy--Lemoore Air Station............... 18,000 18,000
Navy--Mare Island Shipyard.............. 6,000 6,000
Navy--Oakland Army Base................. 2,275 2,275
Navy--Oakland Supply Center............. 7,000 7,000
Navy--Stockton Communications Station... 3,700 3,700
Navy--Treasure Island Station........... 4,000 4,000
Palo Alto, City of...................... 175,000 175,000
Parks & Recreation, California
Department of--Folsom.................. 100 100
Parks Reserve Forces Training Area...... 500 500
Patterson Water District................ 2,000 2,000
Plumas-Sierra Rural Electric Cooperative 25,000 25,000
Provident Irrigation District........... 750 750
Rag Gulch Water District................ 500 500
Reclamation District 2035............... 1,600 1,600

[[Page 8720]]

Redding, City of........................ 116,000 116,000
Roseville, City of...................... 69,000 69,000
Sacramento Municipal Utility District\5\ 361,000 361,000
Sacramento Municipal Utility District... 100,000 ..............
San Juan Water District................. 1,000 1,000
San Luis Water District-Fittje.......... 3,250 3,250
San Luis Water District-Kaljian......... 3,400 3,400
Santa Clara, City of.................... 216,532 136,532
Santa Clara Valley Water District....... 987 987
Shasta Lake, City of.................... 11,450 11,450
Sonoma County Water Agency.............. 1,500 1,500
Terra Bella Irrigation District......... 987 987
Trinity County Public Utilities District 17,000 ..............
Tuolumne Public Power Agency............ 7,000 ..............
Turlock Irrigation District............. 3,941 3,941
Ukiah, City of.......................... 8,773 8,773
University of California, Davis......... 14,682 14,682
West Side Irrigation District........... 2,000 2,000
West Stanislaus Irrigation District..... 5,200 5,200
Westlands Water District, Assumed Point
of Delivery............................ 6,684 6,684
Westlands Water District, Pumping Plant
^{#7-1................................... 3,200 3,200
Westlands Water District, Pumping Plant
^{#6-1................................... 1,850 1,850
Temporarily unallocated NDA Act power... 5,500 5,500
-------------------------------
1,580,230 1,349,221
------------------------------------------------------------------------
Notes:
\1\ CRD temporarily laid off and reallocated to other existing customers
is reflected in this Appendix A, under both CRD and Extension CRD, as
being returned to the existing customer who received the original
allocation.
\2\ The Extension CRD will be reduced if an existing customer is not
using its full CRD (based on the peak demand experienced during CY
1997 through 2000).
\3\ Exclusions are Diversity and Curtailable Power, peaking/excess
capacity, First Preference entitlements, and NDA Act power not used
for military loads.
\4\ May be adjusted for conversion from project use power to preference
power due to Federal facility transfers to existing project use
customers.
\5\ Sacramento Municipal Utility District's Extension CRD will be
360,000 kW if the 360/1,152 ratio is used for resource extension
purposes.

Appendix B--Examples of Existing Customers' Resource Extension Proposal
2005 Through 2014
Assumptions:
An existing customer with an Extension CRD of 100 MW.
Base Resource after 2004 is 1000 MW.
Sum of all existing customers' Extension CRD is 1,349 MW.
Initial resource pool is 4%.
Incremental resource pool is 2%.
All amounts are rounded.
1. For the period 2005 through 2014, an existing customer's
percentage right to a resource extension will be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN26FE97.005

Where:
A=Lessor of individual existing customer's (excluding SMUD) Extension
CRD as of December 31, 2001; or 104 percent of their maximum demand
during CY 1997 through 2000. Western reserves the right to adjust the
value of ``A'' when it is determined that the maximum demand is not
reflective of an existing customer's load.
B=The sum of all values for ``A''.
BR=Base Resource available.
ABR=Adjusted Base Resource
[GRAPHIC] [TIFF OMITTED] TN26FE97.006

[[Page 8721]]

RP%=Resource pool percentage.
Calculation:
SMUD's purchase rights=
(360/1,152) x BR
(360/1,152) x 1,000
0.3125 x 1,000
312.5 MW
Existing 100 MW customer's purchase rights=
(A/B) x ABR
(100/988) x ABR
0.101 x 660
67 MW
ABR=
{BR-[(360/1,152) x BR]} x (100%-RP%)
{1,000-[(360/1,152) x 1,000]} x (100%-4%)
[1,000-(0.3125 x 1,000)] x 96%
(1,000-312.5) x 96%
687.5 x 96%
660 MW
2. Existing customer's (excluding SMUD) rights to the optional
purchase will be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN26FE97.007

Where:

A = Lessor of individual existing customer's Extension CRD as of
December 31, 2001; or 104 percent of their maximum demand during CY
1997 through 2000. Western reserves the right to adjust the value of
``A'' when it is determined that the maximum demand is not reflective
of an existing customer's load.
B = The sum of all values for ``A''.
C = The sum of all existing customers', including SMUD, Extension CRD.
BR = Base Resource available.
RP% = Resource pool percentage.
TOP = Total optional purchase
[GRAPHIC] [TIFF OMITTED] TN26FE97.008

Calculation:
Individual existing 100 MW customer's optional purchase=
(A/B x TOP
(100/988) x TOP
0.101 x 43.1
4.4 MW
TOP=
{[(360/1,152)-(361/1,349)] x BR} x (100%-RP%0)
{[(360/1,152)-(361/1,349)] x 1,000} x (100%-4%)
[(.3125-0.2676) x 1,000] x 96%
(0.0449 x 1,000) x 96%
44.9 x 96%
43%
[FR Doc. 97-4695 Filed 2-25-97; 8:45 am]
BILLING CODE 6450-01-P}}}}}}}