[Federal Register Volume 64, Number 173 (Wednesday, September 8, 1999)]
[Notices]
[Pages 48825-48827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23330]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Power Allocation Procedures and Call for Applications, Post-2004
Resource Pool--Salt Lake City Area Integrated Projects
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of allocation procedures and call for applications.
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SUMMARY: The Western Area Power Administration (Western), a Federal
power marketing agency of the Department of Energy (DOE), is seeking
applicants for long-term firm capacity and energy resources (power
resources) available from the Salt Lake City Area Integrated Projects
(SLCA/IP) on October 1, 2004.
DATES: Western will hold public information meetings on its procedures
at the following locations and times:
1. September 8, 1999, 9 a.m., Albuquerque, New Mexico
2. September 9, 1999, 9 a.m., Farmington, New Mexico
3. September 14, 1999, 9 a.m. Kingman, Arizona
4. September 15, 1999, 9 a.m., Phoenix, Arizona
5. September 16, 1999, 9 a.m., Salt Lake City, Utah
ADDRESSES:
1. Albuquerque, Pueblo Cultural Center; 2401 12th Street NW
2. Farmington, Holiday Inn, 600 E. Broadway
3. Kingman, Holiday Inn, 3100 Andy Devine
4. Phoenix, YWCA, 9440 N. 25th Avenue
5. Salt Lake City, Western Area Power Administration, 150 Social Hall
Avenue, Suite 300
All correspondence regarding these procedures should be directed to
the following address; Mr. Burt Hawkes, Power Marketing and Contracts
Team Lead, CRSP Customer Service Center, Western Area Power
Administration, P.O. Box 11606, Salt Lake City, UT 84147-0606.
FOR FURTHER INFORMATION CONTACT: Burt Hawkes, Power Marketing and
Contracts Team Lead, (801) 524-3344; Clayton Palmer, Resources and
Environment Team Lead, (801) 524-3522; or Lyle Johnson, Public
Utilities Specialist, (801) 524-5585. Written requests for information
should be sent to CRSP Customer Service Center, Western Area Power
Administration, P.O. Box 11606, Salt Lake City, UT 84147-0606.
SUPPLEMENTARY INFORMATION:
Authorities: Power resources are marketed pursuant to the DOE
Organization Act (42 U.S.C. 7101-7352); and the Reclamation Act of
1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by
subsequent enactments, particularly section 9(c) of the Reclamation
Project Act of 1939 (43 U.S.C. 485 h(c)); and other acts
specifically applicable to the projects involved.
Background
Existing power resource contracts were due to expire on September
30, 2004. In a Notice of Decision published on June 25, 1999 (64 FR
34413), Western determined that it will extend 93 percent of most of
the existing customers' proportional shares of the power resources
available on October 1, 2004, through September 30, 2024. In addition,
a further 7-megawatt reduction to Tri-State Generation and Transmission
Association, Inc.'s (Tri-State) allocation will be made. The amount not
extended to existing customers will be allocated in accordance with
these procedures. Western expects the amount will be sufficient to
supply up to 12. 5 percent of the current load of eligible new
preference applicants and 65 percent of the current load of eligible
Native American applicants.
In an exception to the general rule, the four existing SLCA/IP
power resource customers that are Native American entities--the Navajo
Tribal Utility Authority (NTUA), the Ak Chin Indian Community, the
Bureau of Indian Affairs' Colorado River Agency, and the San Carlos
Irrigation Project--will be extended 100 percent of their pro rata
shares of the SLCA/IP resource available on October 1, 2004. Moreover,
Western intends, if necessary, to allocate additional power resources
to these existing Native American customers so that 65 percent of the
1998-1999 nonindustrial load of NTUA and 65 percent of the 1998-1999
total load of each of the other Native American organizations is
served.
For Native American tribes currently receiving power from utilities
that have allocations of Federal power resources, Western will take
into account the benefit received through the existing supplier when
determining their allocations.
During the process of allocating the resource pool, further
information about
[[Page 48826]]
actual loads will be collected and used to determine the final
allocations from the resource pool. Western, to the extent it is able,
will provide technical assistance to Native American applicants
requesting assistance in preparation of their applications and load
data. If a Native American applicant received an allocation and
executes a purchase contract within the request time period but is
unable to receive power on October 1, 2004, the power resources
allocated will be provided to other customers until such time as the
Native American applicant is able to accept the power.
The Post-2004 Resource Pool Allocation Procedures
These procedures for the SLCA/IP address (1) eligibility criteria,
(2) Western's plans to allocate the pool resources to eligible
applicants, and (3) the terms and conditions under which Western will
sell the power resources allocated.
I. Amount of Power Resources
Western will allocate the SLCA/IP power resource available as of
October 1, 2004.
II. General Eligibility Criteria
Western will apply the following general eligibility criteria to
applicants seeking an allocation of power resources under the proposed
Post-2004 Resource Pool Allocation Procedures.
A. Applicants, including Native American applicants, must be
entities that Western determines to be entitled to preference in the
allocation of power resources in accordance with section 9(c) of the
Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), as amended.
B. Non-Native American applicants' loads must be located within the
portion of the SLCA/IP marketing area which includes New Mexico and
Utah; the portion of Colorado west of the Continental Divide; the
southwest area of Wyoming within the Colorado River Basin; White Pine
County and those portions of Elko and Eureka Counties currently served
by Mt. Wheeler Power in Nevada; and the areas in Arizona currently
served by the Dixie Escalante Electric Cooperative, the Garkane Power
Association, the Navajo Tribal Utility Authority, the Navopache
Electric Cooperative, and the Continental Divide Electric Cooperative.
Qualified Native American applicants' loads must be located within the
previously established SLCA/IP marketing area which consists of
Arizona; Colorado; New Mexico; Utah; Wyoming; and Clark, Lincoln, Nye
Counties, and those portions of Elko and Eureka Counties currently
served by Mt. Wheeler Power in Nevada.
C. Applicants must not be currently receiving benefits, directly or
indirectly, from a current power resource allocation. Native American
applicants and Navopache Electric Cooperative are not subject to this
requirement.
D. Applicants must be able to use the power resource directly or be
able to sell it directly to their retail customers.
E. Applicants must have ``utility status'' by September 30, 2003.
``Utility status'' means that the entity has responsibility to meet
load growth, has a distribution system, and is ready, willing, and able
to purchase Federal power from Western on a wholesale basis. Native
American tribes are not subject to this requirement.
F. Any Native American applicant must be an Indian tribe as defined
in the Indian Self Determination Act of 1975 (25 U.S.C. 450b), as
amended, or an organization of an Indian Tribe.
G. Applicants must submit letters of intent and applicant profile
data to Western on or before the dates specified in this notice.
III. General Allocation Criteria
Western will apply the following general allocation criteria to
applicants seeking an allocation of power resources under the Post-2004
Resource Pool Allocation Procedures.
A. Allocations of power resources will be made in amounts as
determined solely by Western.
B. An allottee will have the right to purchase such power resources
only upon the execution of an electric service contract between Western
and the allottee and the continued satisfaction of all conditions in
that contract.
C. Allocations made to Native American applicants will be based
upon actual loads experienced by the Native American applicants on
their respective reservations in the 1998 summer season and the 1998-99
winter season. If actual load data are not available, quality estimates
will be accepted. Inconsistent and suspect estimates may be adjusted by
Western during the allocation process. Western is willing to consult
with the Native American applicants to develop load data collection and
estimating methods assuring consistency among eligible Native American
applicants' loads across the marketing area.
D. Allocations made to non-Native American applicants will be based
upon their energy use experienced in the 1998 summer season and the
1998-99 winter season.
E. Allocations of power resources will be determined by Western and
be based upon Western's system load factor.
F. Any electric service contract offered to an applicant shall be
executed by the applicant within 6 months of a contract offer by
Western, unless otherwise agreed to in writing by Western, or the offer
will be withdrawn.
G. Power resources available from the resource pool will first be
allocated to eligible Native American applicants with the goal of
serving 65 percent of their 1998-1999 loads. Remaining power resources
will be allocated to other eligible applicants.
H. If unanticipated obstacles to the delivery of power resource
benefits to Native American applicant(s) arise, Western retains the
right to provide the economic benefits of its resources directly to the
Native American applicant(s) in some other manner.
IV. General Contract Principles
Western will apply the following general contract principles to all
applicants receiving an allocation of power resources under the
proposed Post-2004 Resource Pool Allocation Procedures.
A. The electric service contracts offered to new and existing
customers as a result of these allocations will have the same general
terms and conditions as the contracts extended to existing customers
and effective on October 1, 2004.
B. Western shall assist the allottee in obtaining third-party
transmission arrangements for delivery of power resources allocated
under these proposed procedures to new customers; nonetheless, each
allottee is ultimately responsible for obtaining its own delivery
arrangements.
V. Applications for Power Resources
Western requests all applications for an allocation of power
resources under these procedures be submitted in writing to the CRSP
Power Marketing and Contracts Team Lead, CRSP Customer Service Center.
The applications, which consist of a letter of interest and Applicant
Profile Data (APD), must be received in Western's CRSP Customer Service
Center at P.O. Box 11606, Salt Lake City, UT 84147-0606, in accordance
with the deadlines set forth below.
A. Letter of Interest
Each applicant must submit to the Power Marketing and Contracts
Team Lead, CRSP Customer Service Center, a Letter of Interest in
receiving power resources and the appropriate APD as outlined below. A
Letter of Interest must
[[Page 48827]]
be received by Western by [insert date 45 days after publication].
B. Applicant Profile Data
APD must be received by Western by [insert date 6 months from date
of publication]. The information should be submitted in the sequence
listed below. The applicant must provide all requested information or a
reasonable estimate. The applicant should note any requested
information that is not applicable. The APD must be typed and two
copies submitted to Western's CRSP Customer Service Center by the date
specified above. Western is not responsible for errors in data or
missing pages. All items of information in the APD should be answered
as if prepared by the organization seeking the allocation.
1. The APD shall consist of the following:
a. Applicant's name and address.
b. Person(s) representing applicant. Please provide the name,
address, title, and telephone number of such person(s).
c. Type of organization; i.e., municipality, rural electric
cooperative, Native American tribe, State agency, Federal agency.
Please provide a brief description of the organization that will
interact with Western on contract and billing matters and whether the
organization owns and operates its own electric utility system.
d. Applicable law under which organization was established.
e. Loads.
2. Non-Native American Applicants.
a. Number and type of customers served; i.e., residential,
commercial, industry, military base, agricultural.
b. The actual monthly maximum demand in kilowatts and energy use in
kilowatt-hours experienced in the 1998 summer season (April 1998
through September 1998) and the 1998-99 winter season (October 1998
through March 1999).
3. Native American Applicants.
a. Number and type of customers served; i.e., residential,
commercial, industrial, military base, agricultural.
b. The actual demand in kilowatts and energy use in kilowatthours
for the 1998 summer season and the 1998-99 winter season. If actual
loads are not available, an estimate of these loads with a description
of the method and basis for this estimate will be accepted.
4. Resources.
a. A list of current power supplies, including the applicant's own
generation and purchases from others. For each, provide capacity and
location.
b. Status of power supply contracts, including a contract
termination date. Indicate whether power supply is on a firm basis or
some other type of arrangement.
5. Transmission.
a. Points of delivery. Provide the preferred point(s) of delivery
on Western's system or a third-party's system and the required service
voltage.
b. Transmission arrangements. Describe the transmission
arrangements necessary to deliver power resources to the requested
points of delivery.
c. Other Information. The applicant may provide any other
information pertinent to receiving an allocation.
d. Signature. The signature and title of an appropriate official
who is able to attest to the validity of the APD and who is authorized
to submit the request for allocation.
C. Western's Consideration of Applications
When the APD is received by Western, Western will determine whether
the General Eligibility Criteria set forth in section II have been met
and whether all items requested in the APD have been provided. Western
will request in writing additional information from any applicant whose
APD is determined to be deficient. The applicant shall have 30 days
from the date on Western's letter of request to provide the
information. If Western determines that the applicant does not meet the
general eligibility criteria, Western will send a letter explaining why
the applicant did not qualify. If the applicant has met the eligibility
criteria, Western will determine the amount of power resources to be
allocated pursuant to the General Allocation Criteria set forth in
section III. Western will send a draft contract to the applicant for
review which identifies the terms and conditions of the offer and the
amount of power resources allocated to the applicant. All power
resources shall be allocated according to the procedures in the General
Allocation Criteria set forth in section III. Western reserves the
right to determine the amount of power resources to allocate to an
applicant, as justified by the applicant in its APD.
VI. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
Federal agencies to perform a regulatory flexibility analysis if a 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.
VII. Review Under the Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3501-3520), Western has received approval from the Office of Management
and Budget (OMB) for the collection of customer information in this
rule under control number 1910-1200.
VIII. Review Under the National Environmental Policy Act
Western will conduct an environmental evaluation to develop the
appropriate level of environmental documentation pursuant to the
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4231 et
seq.), the Council on Environmental Quality Regulations (40 CFR parts
1500 through1508), and the DOE NEPA Implementing Procedures and
Guidelines (10 CFR part 1021).
IX. Determination Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Dated: September 1, 1999.
Timothy J. Meeks,
Assistant Administrator.
[FR Doc. 99-23330 Filed 9-7-99; 8:45 am]
BILLING CODE 6450-01-P