[Federal Register Volume 65, Number 48 (Friday, March 10, 2000)]
[Notices]
[Pages 12987-12990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5948]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Post-2004 Resource Pool-Loveland Area Projects

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed allocation procedures and call for 
applications.

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SUMMARY: Western Area Power Administration (Western), a Federal power 
marketing agency of the Department of Energy, is publishing this notice 
of proposed procedures to implement Subpart C--Power Marketing 
Initiative of the Energy Planning and Management Program Final Rule, 10 
CFR part 905. The Energy Planning and Management Program (Program), 
which was developed in part to implement section 114 of the Energy 
Policy Act of 1992, became effective on November 20,

[[Page 12988]]

1995. Subpart C of the Program provides for establishing project-
specific resource pools and allocating power from these pools to new 
preference customers. These proposed procedures, in conjunction with 
the Loveland Area Projects Final Post-1989 Marketing Plan (Post-1989 
Marketing Plan) will establish the framework for allocating power from 
the resource pool to be established for the Loveland Area Projects 
(LAP).

DATES: The comment period on the proposed procedures begins today and 
ends June 8, 2000. To be assured of consideration, Western must receive 
all written comments by the end of the comment period. Western will 
hold public information forums and public comment forums on the 
proposed procedures on March 14, 21, and 23, 2000, at the following 
locations and times:

    1. March 14, 2000, information forum begins at 10 a.m. Comment 
forum immediately following in Northglenn, Colorado.
    2. March 21, 2000, information forum begins at 10 a.m. Comment 
forum immediately following in Casper, Wyoming.
    3. March 23, 2000, information forum begins at 10 a.m. Comment 
forum immediately following in Topeka, Kansas.

ADDRESSES: Send written comments regarding these proposed procedures 
to: Mr. Joel K. Bladow, Regional Manager, Rocky Mountain Customer 
Service Region, Western Area Power Administration, P.O. Box 3700, 
Loveland, CO 80539-3003. All documentation developed or retained by 
Western for the purpose of developing these procedures will be 
available for inspection and copying at the Rocky Mountain Customer 
Service Region Office, at 5555 East Crossroads Boulevard., Loveland, CO 
80538-8986.
    Public information and comment forums will be held at:

    1. Holiday Inn Denver-Northglenn, 10 East 120th Avenue, Northglenn, 
Colorado.
    2. The Events Center, 1 Events Drive, Casper, Wyoming.
    3. Holiday Inn Topeka West, 605 Fairlawn Road, Topeka, Kansas.

FOR FURTHER INFORMATION CONTACT: Ron Steinbach, Power Marketing 
Manager, 970-490-7322; David Holland, Contracts and Energy Services 
Manager, 970-490-7259; or Susan Steshyn, Public Utilities Specialist, 
970-490-7237. Written requests for information should be sent to Rocky 
Mountain Customer Service Region, Western Area Power Administration, 
P.O. Box 3700, Loveland, CO 80539-3003. After all public comments have 
been thoroughly considered, Western will prepare and publish Final 
Post-2004 Resource Pool Allocation Procedures in the Federal Register.

SUPPLEMENTARY INFORMATION: Western published the Final Rule for the 
Program, 60 FR 54151, October 20, 1995. The rule became effective on 
November 20, 1995. The goal of the Program is to require planning and 
efficient electric energy use by Western's long-term firm power 
customers and to extend Western's firm power resource commitments. One 
aspect of the Program is to establish project-specific power resource 
pools when existing resource commitments expire and allocate power from 
these pools to new preference customers. Existing resource commitments 
for LAP expire on September 30, 2004. In accordance with the Program, 
96 percent of the firm power resources available in 2004 was extended 
to existing customers. The remaining 4 percent will be placed in a 
resource pool from which power allocations to new customers will be 
made following these proposed procedures and the Post-1989 Marketing 
Plan, 48 FR 38279, August 23, 1983. The Proposed Post-2004 Resource 
Pool Allocation Procedures for LAP address (1) eligibility criteria; 
(2) how Western plans to allocate the pool resources to new customers 
as provided for in the Program; and (3) the terms and conditions under 
which Western will sell the allocated power.

I. Amount of Pool Resources

    Western proposes to allocate up to 4 percent of the LAP long-term 
firm hydroelectric resource available as of October 1, 2004, as firm 
power (firm power). Present hydrologic studies indicate that about 28 
MW will be available for the summer season and about 24 MW will be 
available for the winter season. Firm power means firm capacity and 
associated energy allocated by Western and subject to the terms and 
conditions specified in Western's long term firm power electric service 
contracts.

II. General Eligibility Criteria

    Western proposes to apply the following general eligibility 
criteria to applicants seeking an allocation of firm power under the 
proposed Post-2004 Resource Pool Allocation Procedures.
    A. Eligible applicants must be preference entities as defined by 
section 9c of the Reclamation Project Act of 1939, 43 U.S.C. 485h(c), 
as amended and supplemented.
    B. Eligible applicants must be located within the currently 
established LAP marketing area.
    C. Eligible applicants must not be currently receiving benefits 
from a current LAP firm power allocation. Eligible Native American 
applicants are not subject to this requirement.
    D. Eligible utility and nonutility applicants must be able to use 
the firm power directly or be able to sell it directly to retail 
customers.
    E. Eligible applicants that are municipalities, cooperatives, 
public utility districts, and public power districts, must have utility 
status by September 30, 2000. 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.
    F. Eligible Native American applicants must be Native American 
Tribes as defined in the Indian Self Determination Act of 1975, 25 
U.S.C. 450b, as amended.

III. General Allocation Criteria

    Western proposes to apply the following general allocation criteria 
to applicants seeking an allocation of firm power under the proposed 
Post-2004 Resource Pool Allocation Procedures.
    A. Allocations of firm power will be made in amounts as determined 
solely by Western in exercising its discretion under Reclamation Law.
    B. An allottee will have the right to purchase such firm power only 
after executing an electric service contract between Western and the 
allottee.
    C. Firm power allocated under these procedures will be available 
only to new eligible applicants in LAP's existing marketing area. This 
marketing area includes parts of Colorado, Kansas, Nebraska, and 
Wyoming. LAP's marketing area is specifically defined as the portion of 
Colorado east of the Continental Divide, Mountain Parks Rural Electric 
Association's service territory in Colorado west of the Continental 
Divide, the portion of Kansas located in the Missouri River Basin, and 
the portion of Kansas west of the eastern borders of the counties 
intersected by the 100th Meridian, the portion of Nebraska west of the 
101st Meridian, and Wyoming east of the Continental Divide.
    D. Allocations made to Native American Tribes will be based on 
estimated or actual load developed by the Native American Tribes. 
Western will adjust inconsistent estimates during the allocation 
process. Western is

[[Page 12989]]

willing to assist tribes in developing load estimating methods assuring 
consistent Native American Tribe load estimates across the region.
    E. Allocations made to qualified utility and nonutility applicants 
will be based on 1998-99 winter season and 1999 summer season loads. 
Western will apply the Post-1989 Marketing Plan criteria to these 
loads.
    F. Firm capacity and energy will be based upon the applicant's 
seasonal system load factor.
    G. Any electric service contract offered by Western to an applicant 
shall be executed by the applicant within six (6) months from the date 
of offer, unless otherwise agreed to in writing by Western.
    H. The initial resource pool will be dissolved subsequent to the 
closing date for executing firm power contracts. Firm power not under 
contract will be used as Western determines.
    I. The minimum allocation shall be 100 kilowatts (kW).
    J. The maximum allocation for qualified utility and nonutility 
applicants shall be 5,000 kilowatts (kW).
    K. Contract rates of delivery shall be subject to adjustment in the 
future as provided for in the Program.
    L. Western retains the right to provide the economic benefits of 
its resources directly to tribes, if unanticipated obstacles to 
delivering hydropower benefits to Native American Tribes arise.

IV. General Contract Principles

    Western proposes to apply the following general contract principles 
to all applicants receiving an allocation of firm power under the 
proposed Post-2004 Resource Pool Allocation Procedures.
    A. Western, at its discretion and sole determination, reserves the 
right to adjust the contract rate of delivery on 5 years' notice in 
response to changes in hydrology and river operations. Any such 
adjustments shall only take place after a public process.
    B. Western shall assist allottees to obtain third-party 
transmission arrangements to deliver firm power allocated under these 
proposed procedures; nonetheless, each allottee is ultimately 
responsible for obtaining its own delivery arrangements.
    C. Contracts entered into under the proposed Post-2004 Resource 
Pool Allocation Procedures shall provide for Western to furnish firm 
electric service effective from the October 2004 billing period, 
through the September 2024 billing period.
    D. The contracts entered into as a result of these proposed 
procedures shall incorporate Western's standard provisions for power 
sales contracts, integrated resource planning, and the general power 
contract provisions.

V. Applications for Firm Power

    Applications for an allocation of firm power under these proposed 
procedures must be submitted in writing to the Regional Manager, Rocky 
Mountain Customer Service Region. The application consists of two 
parts, a Letter of Interest and Applicant Profile Data (APD), which 
must be received in Western's Rocky Mountain Customer Service Region at 
P.O. Box 3700, Loveland, Colorado 80539-3003, in accordance with the 
requirements listed here.

A. Letter of Interest

    Each applicant should submit to the Regional Manager, Rocky 
Mountain Customer Service Region, a Letter of Interest in receiving 
firm power no later than close of business on June 9, 2000. A Letter of 
Interest does not obligate an applicant in any way. If an applicant is 
eligible for an allocation under these proposed procedures, an electric 
service contract between Western and the allottee will be the binding 
document.

B. Applicant Profile Data

    To remain eligible for an allocation, each applicant must submit 
two typed copies of the APD to Western's Rocky Mountain Customer 
Service Region no later than close of business on September 6, 2000. 
The content and format of the APD follows. Requested information should 
be submitted in the sequence listed. The applicant must provide all 
requested information or the most reasonable available estimate. The 
applicant should note any requested information that does not apply. 
Western is not responsible for errors in data, missing data, or missing 
pages. All items in the APD should be answered as if prepared by the 
organization seeking the allocation.
    1. Applicant:
    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: For example, municipality, rural electric 
cooperative, Native American Tribe, state agency, or Federal agency. 
Please provide a brief description of the organization that will 
interact with Western contract and billing matters and whether the 
organization owns and operates its own electric utility system.
    d. Applicable law under which the organization was established.
    2. Loads:
    a. Utility and Nonutility Applicants:
    i. If applicable, number and type of customers served; i.e., 
residential, commercial, industry, military base, agricultural.
    ii. The actual monthly maximum demand in (kilowatts) and energy use 
(in kilowatthours) during the 1998-99 winter season (October 1998 
through March 1999) and the 1999 summer season (April 1999 through 
September 1999).
    b. Native American Tribe Applicants:
    Estimated maximum demand in kilowatts with a description of the 
method and basis for this estimated demand.
    3. Resources:
    a. A list of current power supplies, including the applicant's own 
generation and purchases from others. For each supply, provide capacity 
and location.
    b. Status of power supply contracts, including contract termination 
date. Indicate whether power supply is on a firm basis or some other 
type of arrangement.
    4. 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 firm power to the requested points of 
delivery.
    5. Other Information:
    The applicant may provide any other information pertinent to 
receiving an allocation.
    6. 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

    1. When Western receives the APD, Western will verify that the 
general eligibility criteria set forth in section II have been met, and 
that all items requested in the APD have been provided.
    a. Western will request in writing additional information from any 
applicant whose APD is determined to be deficient. The applicant shall 
have 15 days from the date on Western's letter of request to provide 
the needed information in writing.
    b. 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.

[[Page 12990]]

    c. If the applicant has met the eligibility criteria, Western will 
determine the amount of firm power 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 firm power allocated to 
the applicant.
    2. All firm power shall be allocated according to the procedures in 
the general allocation criteria set forth in section III.
    3. Western reserves the right to determine the amount of firm power 
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. (Act), 
requires Federal agencies to perform a regulatory flexibility analysis 
if a proposed regulation is likely to have a significant economic 
impact on a substantial number of small entities. Western has 
determined that (1) this rulemaking relates to services offered by 
Western, and, therefore, is not a rule within the purview of the Act, 
and (2) the impacts of an allocation from Western would not cause an 
adverse economic impact on a substantial number of 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.

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) to collect customer information in this rule, under 
control number 1910-1200.

VIII. Review Under the National Environmental Policy Act

    Western has completed an environmental impact statement on the 
Program, pursuant to the National Environmental Policy Act of 1969 
(NEPA). The Record of Decision was published in the Federal Register on 
October 12, 1995 (60 FR 53181). Western's NEPA review will assure all 
environmental effects related to these procedures have been analyzed.

IX. Determination Under Executive Order 12866

    DOE has determined that this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of this notice 
by OMB is required.

    Dated: February 25, 2000.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 00-5948 Filed 3-9-00; 8:45 am]
BILLING CODE 6450-01-P