[Federal Register Volume 63, Number 149 (Tuesday, August 4, 1998)]
[Notices]
[Pages 41561-41566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20726]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Collections From Central Valley Project Power Contractors to 
Carry Out the Restoration, Improvement, and Acquisition of 
Environmental Habitat Provisions of the Central Valley Project 
Improvement Act of 1992

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of final procedures.

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SUMMARY: The Western Area Power Administration (Western) is, by 
publication of this notice, announcing its final procedures for the 
assessment and collection of restoration fund payments from the Central 
Valley Project (CVP) power contractors. These final procedures 
supersede the procedures published in the Federal Register on April 8, 
1994. Western published the proposed procedures in the Federal Register 
on April 13, 1998. Included in this notice is a discussion of the 
comments on the proposed procedures.

DATES: The final procedures will become effective September 3, 1998 and 
will remain in effect until superseded.

ADDRESSES: Information regarding the final procedures, including 
comments, letters, and other supporting documents made or kept by 
Western to develop these final procedures, is available for public 
inspection and copying at Western's Sierra Nevada Customer Service 
Region, 114 Parkshore Drive, Folsom, California.

FOR FURTHER INFORMATION CONTACT: Ms. Zola M. Jackson, Power Marketing 
Manager, Sierra Nevada Customer Service Region, Western Area Power

[[Page 41562]]

Administration, 114 Parkshore Drive, Folsom, California, 95630-4710, 
(916) 353-4421.

SUPPLEMENTARY INFORMATION: Section 3407 of the CVP Improvement Act of 
1992 (Act) (Pub. L. 102-575, 106 Stat. 4706, 4726) establishes in the 
Treasury of the United States the CVP Restoration Fund (Restoration 
Fund) to carry out the habitat restoration, improvement, and 
acquisition provisions of the Act. The Act further requires the 
Secretary of the Interior to assess and collect annual mitigation and 
restoration payments from CVP water and power contractors (Restoration 
Payments). The Secretary of the Interior, through the Bureau of 
Reclamation (Reclamation), is responsible for determining and 
collecting the CVP water and power contractors' shares of the annual 
total restoration payment obligation.
    Western is responsible for the marketing and transmission of CVP 
power. Western has agreed to administer the assessment and collection 
of the Restoration Payments from CVP power contractors. Western has 
executed a letter of agreement with Reclamation to establish procedures 
for depositing the collections from CVP power contractors into the 
Restoration Fund.
    Western will assess the annual power restoration payment 
obligation, determined by Reclamation, to CVP power contractors. 
Western will issue a monthly Restoration Fund Bill to each CVP power 
contractor. This bill will reflect the amount the CVP power contractor 
must pay into the Restoration Fund. The CVP power contractor pays that 
amount to Western, who will transfer all amounts collected from CVP 
power contractors to Reclamation for deposit into the Restoration Fund.
    Western published final procedures in the Federal Register on April 
8, 1994 (59 FR 16801). Those procedures provided that Western review 
the procedures if an apparent inequity in the assessment method is 
discovered. An apparent inequity was discovered and Western initiated 
the public process to replace the procedures.

Public Notice and Comment

    Summarized below is the process Western used to ensure involvement 
of interested parties in the development of the final procedures for 
the assessment and collection of Restoration Fund payments from CVP 
power contractors.
    1. Western published a notice in the Federal Register (63 FR 18005) 
on April 13, 1998. This notice officially announced the proposed 
procedures, initiated the public consultation and comment period, and 
announced the public information and comment forums.
    2. Western sent letters on April 16, 1998, to all CVP preference 
customers and interested parties transmitting the Federal Register 
notice dated April 13, 1998, and announcing the times and locations for 
the two public forums.
    3. Western held the public information and comment forums on April 
29, 1998, at its Sierra Nevada Customer Service Region in Folsom, 
California. At the public information forum, Western explained the 
proposed procedures, detailed a proposed option, and answered 
questions. Western held the public comment forum after the public 
information forum, to give the public the opportunity to comment for 
the record. Two representatives made oral comments.
    4. Western mailed letters to all CVP preference customers and 
interested parties on May 1, 1998, informing them of the information 
provided at the April 29, 1998, public information forum. The 
information contained a description of the option that Western was 
offering for public comment.
    5. Western received four comment letters during the public 
consultation and comment period. Western reviewed and considered all 
comments received by the end of the public consultation and comment 
period, May 13, 1998, in developing the final procedures.
    Western received written comments from the following organizations:

Ecosystem Management International, Inc. (Arizona)
Trinity County Public Utilities District (California)
Sacramento Municipal Utility District (California)
City of Redding (California)

    Representatives of the following organizations made oral comments:

Sacramento Municipal Utility District (California)
U.S. Bureau of Reclamation, Mid-Pacific Region (California)

    Summarized below are the paraphrased comments Western received and 
Western's responses to those comments. Western used specific comments 
for clarification where necessary.

A. Alternative Method for Assessing the Annual Power Restoration 
Payment Obligation (PRPO)

    Comment: The alternative method should be the primary method for 
assessing the annual PRPO and the other proposed method in the Federal 
Register (63 FR 18005) notice of April 13, 1998, should be the 
alternative method.
    Response: The commentator did not provide sufficient justification 
for changing Western's proposal. Furthermore, Western presented the 
alternative method, as proposed in the Federal Register notice of April 
13, 1998, to various CVP power contractors at customer meetings. The 
resulting consensus from these meetings was that there is not enough 
general support for making the alternative method the primary method. 
Western will continue to offer the alternative method as an option for 
assessing the annual PRPO.
    Comment: Including an alternative method for assessing the annual 
PRPO in the procedures is encouraging. The alternative method should 
give CVP contractors a method to average the payments over the entire 
year without significant changes caused by large midyear adjustments.
    Response: Western agrees with the comment to offer the alternative 
method as an option for assessing the annual PRPO. Under the 
alternative method, Western determines the CVP power contractor's 
Restoration Fund payment amount monthly by prorating the CVP power 
contractor's share of the annual PRPO based on the CVP power 
contractor's forecasted or prior year's power purchases. CVP power 
contractors who prefer the alternative method must notify Western in 
writing before August 31, 1998.

B. Option That Changes the Assessment Year Period and the Assessment 
Month

    Comment: The information presented on the option at the public 
information forum and as provided in Western's letter dated May 1, 
1998, lacked the necessary supporting historical load data to support 
the advantage of moving the month when assessments are made and then 
billed. The commentator is not opposed to moving the month when 
assessments are made and then billed, if Western can provide supporting 
details showing that this better balances the capacity and energy usage 
on a percentage basis for each customer group for the first 6 months of 
the assessment year.
    Response: Western's May 1, 1998, letter offered to provide 
additional information on the option if requested. The supporting data 
for this option is part of the record and is available for review. The 
supporting data shows that this method better balances the capacity and 
energy usage.

C. Assessing the Annual PRPO Based on a Percentage Split of 50 Percent 
to Capacity and 50 Percent to Energy

    Comment: Western should present an analysis of using a 40/60, a 60/
40, and

[[Page 41563]]

a 50/50 percent split of the PRPO, as well as any other percentage 
combinations that they see as necessary for evaluating the sharing of 
the PRPO to capacity and energy. The commentator believes an analysis 
of how the PRPO is shared by different customer groups for different 
combinations of capacity and energy, over a projected 5-year period (or 
based on historical capacity and energy sales data for the last 5 
years), would help justify Western's decision to continue to use a 50/
50 percent split between capacity and energy sales.
    Response: Western reviewed the procedure in assessing the annual 
PRPO based on a percentage split of 50 percent to capacity and 50 
percent to energy. Western believes that continuing to assess the 
annual PRPO based on this 50/50 percentage split would reflect the 
actual percentage split used. Western performed an analysis with CVP 
power contractors' historical capacity and energy amounts, delivered or 
scheduled with Western, for Fiscal Year (FY) 1994 (when assessment and 
collection of restoration fund payments began) through FY 1996 
(complete data for FY 1997 was unavailable at the time). The results of 
this analysis showed that the historical average capacity and energy 
percentage splits were close to a 50/50 basis. Western presented these 
results to various CVP power contractors at customer meetings. The 
consensus from these meetings recommended that Western continue to use 
the procedure in assessing 50 percent of the annual PRPO to capacity 
and 50 percent to energy. Furthermore, the 50/50 percent split is 
consistent with the recent CVP rate adjustment proceeding, in which 
Western's cost of the CVP power generation was allocated 50 percent to 
capacity and 50 percent to energy. The analysis is part of the record 
and is available for review.

D. Adjustment to the Annual PRPO

    Comment: Some advantages may exist in lowering the proposed 25 
percent deviation figure used to determine if adjustments are needed to 
the capacity and energy multipliers. A benchmark in the range of 10 to 
15 percent is suggested. The lower figure would reduce the risk of how 
carryover funds will be treated for the over collected situations and 
would reduce the burden for makeup payments in a following year for the 
under collected situations.
    Response: Western evaluated the issue and agrees with the comment. 
As a result, Western is including a 15 percent greater or less 
benchmark figure to determine if adjustments are needed to the capacity 
and energy multipliers, in the final procedures.

E. Other Comments

    Comment: An inequity will continue to exist if the procedures are 
adopted as published in the Federal Register notice of April 13, 1998. 
The legislative authority to construct the Trinity River Division (TRD) 
included provisions to mitigate the resulting local economic and 
environmental impacts. However, those provisions have not come close to 
compensating the people of Trinity County for the TRD's impacts. Yet 
the TRD has provided tremendous benefits to the Central Valley, 
including reducing the environmental losses to the Central Valley's 
ecosystem. Contributions to the Restoration Fund mean that the people 
of Trinity County pay twice to restore the Central Valley's ecosystem. 
This is clearly an inequity that Western could end by exempting Trinity 
County from further Restoration Fund charges. The CVP Improvement Act 
of 1992 provides Western significant discretion on how to allocate the 
cost of the Restoration Fund among its contractors. The commentator 
urges Western to use this discretion to limit Restoration Fund payments 
to those who have benefited from the ecological losses.
    Response: Western analyzed the CVP Improvement Act of 1992 
regarding the assessment of the Restoration Fund's cost, and similar 
costs under other related legislation affecting CVP power contractors. 
Western has discretion in how the Restoration Fund's cost that is 
assessed to power is allocated. Western also analyzed Trinity County's 
contribution toward the restoration programs compared to contributions 
made by other CVP power contractors. Western concluded from this 
analysis that Trinity County may, at times, be paying a greater share 
of the costs for these restoration programs. Based on these findings, 
it is appropriate to adjust the amounts of Restoration Fund payments 
assessed to Trinity County by prospectively applying a credit to the 
monthly Restoration Fund bills for Trinity County. The amount and 
timing of the credits will be determined by Western and set forth in an 
agreement with Trinity County. The credit will not be greater than 
Trinity County's share of the PRPO.
    Comment: How much revenue has been transferred to the Bureau of 
Reclamation under the aegis of the CVP Improvement Act since 1993? What 
rate was charged to the power contractors for the actual capacity and 
energy for 1993 through 1997? Has the addition of the Restoration Fund 
caused the repayment period for the CVP to be extended? What percentage 
of the total revenues does the Restoration Fund represent? Is it 1 
percent of the total revenue or larger?
    Response: Western provided the data requested by the commentator. 
The data is part of the record and is available for review.
    Comment: The commentator requested that Western clarify the 
statement found in the Federal Register notice of April 13, 1998, that 
any balances remaining on the CVP power contractor's Restoration Fund 
bill(s) must be paid in full by the thirtieth (30th) of September for 
each assessment year. Western should state that September 30 is the 
last day for Western to transfer all Restoration Fund payments received 
from CVP power contractors to Reclamation for deposit into the 
Restoration Fund. The clarification is requested to ensure that the 
reference date of September 30 is not confused with the actual due date 
for Restoration Fund Bills.
    Response: Western agrees with the comment and has clarified this 
statement in the final procedures.

Changes to Proposed Procedures

    Western considered all comments received during the 30-day public 
consultation and comment period and has made changes to the proposed 
procedures. While the decisions outlined in the final procedures may 
not reflect a consensus on every issue, Western believes the final 
procedures to be an equitable distribution of the total restoration 
payment obligation among the CVP power contractors. The final 
procedures will provide the mechanism required to assess and collect an 
amount that is reasonably expected to equal the amount allocated to 
power by Reclamation.
    Under the proposed procedures, the assessment month was defined as 
the service month 1 month prior to the billing month. The assessment 
year was defined as the period that uses the service months from August 
1 through July 31 for which CVP power contractors will be billed for 
Restoration Payments. These definitions have been changed. In the final 
procedures, the assessment month is defined as the service month which 
is 3 months prior to the billing month, and the assessment year is 
defined as the period that uses the service months from June 1 through 
May 31 for which CVP power contractors will be billed Restoration 
Payments.
    The proposed procedures provided for a midyear adjustment period. 
If the actual payment amounts are 25 percent

[[Page 41564]]

greater or less than projected, Western would adjust the capacity and 
energy multipliers for the remaining months of the subject assessment 
year. The 25 percent deviation amount has been changed to 15 percent.
    The proposed procedures included a reviewing process for Western to 
review the procedures every 5 years, or if one of three provisions 
occurs. The final procedures added another provision in which Western 
will review the procedures if any significant change occurs that 
affects the procedures.

Final Procedures

A. Acronyms and Definitions

    As used herein, the following acronyms and definitions when used 
with initial capitalization, whether singular or plural, will have the 
following meanings:
    Administrator: The Administrator of the Western Area Power 
Administration.
    Assessment Month: The service month, which is 3 months prior to the 
Billing Month.
    Assessment Year: The period that uses the service months from June 
1 through May 31 for which CVP Power Contractors will be billed 
Restoration Payments.
    Billing Month: The month CVP Power Contractors will be billed for 
the Restoration Payments.
    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.
    CVP Improvement Act of 1992 (Act): Title 34 of Public Law 102-575, 
106 Stat. 4706, et seq. A legislative act, which was enacted on October 
30, 1992, and defines provisions for habitat restoration, improvement 
and acquisition, and other fish and wildlife restoration activities in 
the CVP area of California.
    DOE: United States Department of Energy.
    Fiscal Year (FY): The year which begins October 1 and ends 
September 30.
    Interior: United States Department of the Interior.
    kW: Kilowatt, the electrical unit of capacity that equals 1,000 
watts.
    kWh: Kilowatt-hour, the electrical unit of energy that equals the 
generation of 1,000 watts over 1 hour.
    Letter of Agreement: Letter of Agreement No. 93-SAO-10156, a 
written agreement between Reclamation and Western that established 
procedures to deposit the Restoration Payments collected from CVP Power 
Contractors into the Restoration Fund.
    Load Adjustment(s): The adjustment(s) to CVP Power Contractors' 
forecasted monthly capacity and energy purchases from Western as 
determined by Western based on CVP Power Contractors' actual capacity 
and energy amounts delivered by or scheduled with Western.
    Midyear Adjustment: The adjustment to the annual Power Restoration 
Payment Obligation as determined by Reclamation on or about April 1 of 
the Assessment Year.
    Power: Capacity and energy.
    Power Contractor: An entity purchasing firm capacity and/or energy 
from Western for a period in excess of 1 year.
    Power Restoration Payment Obligation (PRPO): The portion of the 
Total Restoration Payment Obligation calculated and assigned annually 
to CVP Power Contractors by Reclamation.
    Reclamation: United States Department of the Interior, Bureau of 
Reclamation.
    Restoration Fund: The CVP Restoration Fund, established by Section 
3407 of the Act, into which revenues provided by the Act are deposited, 
and from which funds are used by the Secretary to carry out the habitat 
restoration, improvement and acquisition provisions of the Act.
    Restoration Fund Bill(s): The instrument prepared and issued 
monthly by Western as a mechanism for collecting the Restoration 
Payments from CVP Power Contractors.
    Restoration Payment(s): The amount(s) recorded as payable on CVP 
Power Contractors' Restoration Fund Bills.
    Secretary: Secretary of Energy.
    Total Restoration Payment Obligation: The total amount of payments 
to be collected from the CVP water and power contractors, calculated 
annually by Reclamation.
    Western: United States Department of Energy, Western Area Power 
Administration.

B. Determination of the Power Restoration Payment Obligation (PRPO)

    Reclamation is responsible for determining the annual PRPO for CVP 
Power Contractors. Prior to each Assessment Year, on or about July 1, 
Reclamation will, by letter, provide to Western's Regional Manager of 
the Sierra Nevada Customer Service Region the amount determined to be 
the PRPO and a detailed explanation of the computation of the amount 
for the upcoming Assessment Year. Upon receiving this letter from 
Reclamation, Western's Sierra Nevada Customer Service Region will 
notify each CVP Power Contractor of the annual PRPO, the capacity and 
energy multipliers for the Assessment Year, and for CVP Power 
Contractors choosing the alternative method for assessing the annual 
PRPO, the resulting monthly Restoration Payment amount. An adjustment 
to the annual PRPO may be accomplished through the Midyear Adjustment 
determined by Reclamation.

C. Assessing the PRPO

    For each Assessment Year, Western will prorate the annual PRPO to 
actual capacity and energy amounts delivered by or scheduled with 
Western for each CVP Power Contractor. Western will assess 50 percent 
of the annual PRPO to capacity and 50 percent to energy. Western will 
determine a capacity multiplier and an energy multiplier using 
projected Power sales based on CVP Power Contractors' forecasts and/or 
prior year's total capacity and energy amounts delivered or scheduled 
to all CVP Power Contractors. Prior to July 1, when Western receives 
Reclamation's letter for the annual PRPO, and beginning with the FY 
2000 Assessment Year, Western will request each CVP Power Contractor to 
submit to Western its forecasted monthly capacity and energy purchases 
from Western. The CVP Power Contractor's forecast will be for June 1 
through May 31 of the subject Assessment Year. If the CVP Power 
Contractor does not submit a forecast of monthly capacity and energy 
purchases, Western will use the CVP Power Contractor's prior year's 
(June 1 through May 31) actual capacity and energy amounts delivered or 
scheduled, with adjustments Western may deem appropriate, as the 
projected Power sales used for the subject Assessment Year.
    The annual PRPO for the subject Assessment Year to be prorated to 
capacity will be divided by Western's projected capacity sales to 
determine the capacity multiplier. The same process will be repeated 
using the annual PRPO prorated to energy divided by Western's projected 
energy sales to determine the energy multiplier. For the FY 1999 
Assessment Year, Western will determine the capacity and energy 
multipliers based on actual capacity and energy amounts delivered or 
scheduled (with appropriate adjustments) to all CVP Power Contractors 
during the period from June 1, 1997, through May 31, 1998.
    During each Assessment Month of the subject Assessment Year, these 
capacity and energy multipliers will be applied to each CVP Power 
Contractor's actual

[[Page 41565]]

capacity and energy amounts delivered by or scheduled with Western to 
determine the CVP Power Contractor's Restoration Payment, unless the 
alternative method for assessing the PRPO is used. Each CVP Power 
Contractor will be billed monthly for its individual Restoration 
Payment.

D. Alternative Method for Assessing the PRPO

    As an alternative method to the assessment method described above 
and if requested by the CVP Power Contractor, Western will determine 
the CVP Power Contractor's monthly Restoration Payments as equal 
monthly payment amounts, as adjusted, for the subject Assessment Year. 
The monthly Restoration Payment amounts will be based on the CVP Power 
Contractor's forecasted or prior year's actual capacity and energy 
amounts delivered by or scheduled with Western.
    Under this alternative method, for each Assessment Year, Western 
will prorate the annual PRPO based on the CVP Power Contractor's 
forecasted or prior year's monthly capacity and energy purchases from 
Western. Western will determine the CVP Power Contractor's monthly 
Restoration Payment amount by multiplying the CVP Power Contractor's 
total forecasted or prior year's capacity purchases by the capacity 
multiplier determined by Western, and repeating the calculation for 
energy using the energy multiplier. Western will sum the resulting 
capacity and energy calculations and then divide by 12 to determine the 
monthly Restoration Payment amount. The CVP Power Contractor will be 
billed monthly for its individual Restoration Payment.
    CVP Power Contractors who prefer this alternative method for 
assessing the annual PRPO must notify Western in writing prior to 
August 31, 1998. Once the CVP Power Contractor elects this alternative 
method, the method will remain in effect unless otherwise mutually 
agreed by Western and the CVP Power Contractor.

E. Collection of CVP Power Contractors' Restoration Fund Bills

    Each CVP Power Contractor will receive a Restoration Fund Bill on 
or about the twenty-fifth (25th), but no later than the last day of the 
month for each month designating the amount payable. The Restoration 
Fund billing cycle will begin in the month of September for each 
Assessment Year.
    If the Restoration Fund billing is suspended for a time, Western's 
Sierra Nevada Customer Service Region will notify all CVP Power 
Contractors as soon as possible. Suspension of billing may occur to 
avoid overpayment on the annual PRPO.

F. Payment Due Date

    All CVP Power Contractors' Restoration Payments are due and payable 
by CVP Power Contractors before the close of business on the twentieth 
(20th) calendar day after the date of the issuance of each Restoration 
Fund Bill or the next business day thereafter if said day is a 
Saturday, Sunday, or Federal holiday.

G. Late Payment Charges Assessed to Delinquent Restoration Payments

    Restoration Fund Bills not paid in full by the CVP Power 
Contractor(s) by the due date as specified above will be assessed a 
late payment charge of five hundredths percent (0.05%) of the principal 
amount unpaid for each day payment is delinquent, to be added until the 
amount due is paid in full. Payments received will be first applied to 
the charges for the late payment assessed on the principal and then to 
the payment of the principal.

H. Deposit of CVP Power Contractors' Restoration Payments into the 
Restoration Fund

    On or about the twenty-first (21st) calendar day of the month 
following each Billing Month, Western will transfer all of the 
Restoration Payments received from CVP Power Contractors, including 
late payment charges, to Reclamation for deposit into the Restoration 
Fund. The thirtieth (30th) of September of each subject Assessment 
Year, is the last day Western is allowed to transfer Restoration 
Payments, including late payment charges, to Reclamation for deposit 
into the Restoration Fund.

I. Adjustment to the PRPO

    There are two types of adjustments that can be made relative to 
each Assessment Year's annual PRPO, a Midyear Adjustment determined by 
Reclamation and Load Adjustments determined by Western. Reclamation 
will notify Western, in writing, of the Midyear Adjustment. Upon 
receiving Reclamation's written notification, Western will notify each 
CVP Power Contractor of the Midyear Adjustment to the annual PRPO and 
any adjustments to capacity and energy multipliers for the remaining 
months of the subject Assessment Year.
    The Midyear Adjustment is determined by Reclamation and occurs on 
or about April 1 of the subject Assessment Year, following 
Reclamation's annual determination of available CVP water supply for 
the year. This adjustment applies to the annual PRPO and is based on 
hydrological conditions and Reclamation's most recently available 
forecast of CVP water deliveries to the CVP water contractors 
applicable to the subject Assessment Year. Upon receiving Reclamation's 
notification, Western may adjust the capacity and energy multipliers as 
appropriate to coincide with the adjusted annual PRPO.
    During the Midyear Adjustment period, Western will also review the 
Restoration Payments from the CVP Power Contractors received thus far 
for the subject Assessment Year. If the actual payment amounts are 15 
percent greater or less than projected, Western may adjust the capacity 
and energy multipliers for the remaining Billing Months of the subject 
Assessment Year. Beginning with the Assessment Month of January and 
continuing throughout the remaining Billing Months of the subject 
Assessment Year, the adjusted multipliers will be applied to each CVP 
Power Contractor's actual capacity and energy amounts delivered by or 
scheduled with Western.
    For the alternative method for assessing the PRPO, Load 
Adjustment(s), determined by Western, will be evaluated quarterly 
during the subject Assessment Year for each CVP Power Contractor. 
Western will compare the CVP Power Contractor's forecasted capacity and 
energy amounts to the actual capacity and energy amounts delivered by 
or scheduled with Western during the subject Assessment Year. If, in 
Western's judgment, the difference would significantly impact other CVP 
Power Contractors, Western will adjust the CVP Power Contractor's 
forecasted capacity and energy amounts to align with actual load data. 
This adjustment will result in a change to the CVP Power Contractor's 
monthly Restoration Payment amount. Western will notify the CVP Power 
Contractor(s) of any Load Adjustment(s) and the resulting change(s) to 
the monthly Restoration Payment amount prior to any adjustments.
    To the extent practicable, for those CVP Power Contractors choosing 
the alternative method for assessing the PRPO, Western will also make 
Load Adjustment(s) during the last quarter of the subject Assessment 
Year to ensure that the CVP Power Contractor's total annual Restoration 
Payment amount is equal to the amount the CVP Power Contractor would 
have paid if billing had been based on actual capacity and energy 
amounts delivered by or scheduled with Western. Any balances remaining 
on the CVP Power Contractor's Restoration Fund Bill(s)

[[Page 41566]]

must be paid in full by the September due date for each Assessment 
Year.
    All other deviations, in the amounts collected or assessed relative 
to the annual PRPO, will be rolled into the following Assessment Year. 
The rolled over amount will be added or subtracted from the PRPO amount 
to be assessed in that year to the CVP Power Contractor(s).

J. Review Process

    Western will review the procedures for the assessment and 
collection of the Restoration Payments from CVP Power Contractors every 
5 years, or if one of the following occurs: (1) If there is a 
significant change to or suspension of the legislation; (2) if a 
material issue arises; (3) if an apparent inequity in the procedures is 
discovered; or (4) if any significant change occurs that affects the 
procedures.

Availability of Information

    All studies, comments, letters, memoranda, or other documents made 
or kept by Western for developing the final procedures, are and will be 
made available for inspection and copying at Western's Sierra Nevada 
Customer Service Region, located at 114 Parkshore Drive, Folsom, 
California.

Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 
requires Federal agencies to perform a regulatory flexibility analysis 
if a final rule is likely to have a significant economic impact on a 
substantial number of small entities and there is a legal requirement 
to issue a general notice of proposed rulemaking. Western has 
determined that this action does not require a Regulatory Flexibility 
analysis since it is a rulemaking of particular applicability involving 
rates or services applicable to public property.

Environmental Compliance

    In compliance with the National Environmental Policy Act (NEPA) of 
1969 (42 U.S.C. 4321, et seq.); the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500 through 1508); and 
the DOE NEPAImplementing Procedures and Guidelines (10 CFR part 1021), 
Western has determined that this action is categorically excluded from 
the preparation of an environmental assessment or an environmental 
impact statement (10 CFR part 1021 Appendix A-5 and A-6).

Review Under Paperwork Reduction Act

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

Determination Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by 
Office of Management and Budget is required.

Small Business Regulatory Enforcement Fairness Act

    Western has determined that this rule is exempt from Congressional 
notification requirements under 5 U.S.C. 801 because the action is 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

Michael S. Hacskaylo,
Administrator.
[FR Doc. 98-20726 Filed 8-3-98; 8:45 am]
BILLING CODE 6450-01-P