[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