[Federal Register Volume 65, Number 54 (Monday, March 20, 2000)]
[Rules and Regulations]
[Pages 14785-14790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6761]
[[Page 14785]]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1710
RIN 0572-AB05
Load Forecasts
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Utilities Service (RUS) is amending its regulations
to revise requirements for borrower load forecasts and load forecast
work plans (historically referred to as power requirements studies and
power requirements study work plans). These changes reduce the level of
detail required in load forecasts filed by small power supply borrowers
and their members and by distribution borrowers unaffiliated with a
large power supply borrower. These changes also give borrowers greater
flexibility in preparation of load forecasts required to be submitted
to RUS.
EFFECTIVE DATE: April 19, 2000.
FOR FURTHER INFORMATION CONTACT: Georg A. Shultz, Chief, Energy
Forecasting Branch, Electric Staff Division, Rural Utilities Service,
U.S. Department of Agriculture, 1400 Independence Ave., SW., Room 1246-
SBldg., STOP 1569, Washington, DC 20250-1569, telephone number: (202)
720-1920, fax: (202) 720-7491, E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for purposes of
Executive Order 12866 and, therefore, has not been reviewed by Office
of Management and Budget (OMB).
Executive Order 12372
This rule is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation, which may require consultation with
State, and tribal governments or the private sector. See the final rule
related notice entitled ``Department Programs and Activities Excluded
from Executive Order 12372,'' (50 FR 47034).
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. RUS has determined that this rule meets the applicable
standards provided in section 3 of the Executive Order. In accordance
with the Executive Order and the rule: (1) All State and local laws and
regulations that are in conflict with this rule will be preempted; (2)
No retroactive effect will be given to this rule; and, (3) In
accordance with Sec. 212(e) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6912(e)), administrative appeal
procedures, if any are required, must be exhausted prior to initiating
litigation against the Department or its agencies.
Regulatory Flexibility Act Certification
The Administrator of RUS has determined that a rule relating to
RUS' electric loan program is not a rule as defined in the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) and, therefore, the Regulatory
Flexibility Act does not apply to this rule. RUS borrowers, as a result
of obtaining Federal financing, receive economic benefits that exceed
any direct economic costs associated with complying with RUS
regulations and requirements.
Information Collection and Recordkeeping Requirements
The Office of Management and Budget has approved the reporting and
recordkeeping requirements contained in this rule under the Paperwork
Reduction Act of 1993 (44. U.S.C. chapter 35) and assigned control
number 0572-0032.
National Environmental Policy Act Certification
The Administrator of RUS has determined that this rule will not
significantly affect the quality of the human environment as defined by
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
Therefore, this action does not require an environmental impact
statement or assessment.
Catalog of Federal Domestic Assistance
The program described by this rule is listed in the Catalog of
Federal Domestic Assistance Programs under No. 10.850, Rural
Electrification Loans and Loan Guarantees. This catalog is available on
a subscription basis from the Superintendent of Documents, U.S.
Government Printing Office, Washington, DC 20402-9325. Telephone: (202)
512-1800.
Unfunded Mandates
This final rule contains no Federal mandates (under the regulatory
provision of title II of the Unfunded Mandates Reform Act of 1995) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of section 202 and 205 of the
Unfunded Mandates Reform Act of 1995.
Background
The Rural Utilities Service (RUS) makes and guarantees loans to
furnish and improve electric service in rural areas pursuant to the
Rural Electrification Act of 1936. (7 U.S.C. 901 et seq.) (RE Act).
Under the RE Act, RUS may make or guarantee a loan only if the
Administrator determines that the security for the loan is reasonably
adequate and that the loan will be repaid within the time agreed. Most
borrowers apply for a new loan to meet system needs every two to three
years. The security for these loans is generally a first lien on the
borrower's electric system, evidenced through the filing of a mortgage.
In order to determine the feasibility of a new loan and whether
borrowers will have sufficient revenues to repay existing loans, RUS
requires most borrowers to file load forecasts, historically called
``power requirements studies'' by RUS, containing current and detailed
information and analyses on existing and expected future loads.
Detailed information from the load forecasts are used in RUS'
independent analysis and oversight of borrower systems.
RUS regulations on the preparation and approval of power
requirements studies and power requirements work plans, contained at 7
CFR part 1710, subpart E, were last revised in 1992, at 57 FR 1053 and
57 FR 4513. Since then, the business and regulatory environment in the
electric industry has undergone rapid change. State regulatory
agencies, power supply systems, power pools, and other entities are
modifying their power planning processes and requirements in the light
of competitive changes in the industry. Even greater transformations
lie ahead as many states move to adopt retail competition. In the years
since the existing regulations were adopted, both RUS and our borrowers
have gained greater familiarity with the development and use of load
forecasts, and supporting analyses and data and the experience and
sophistication of RUS financed systems have increased.
In response to changes in the industry and the Administration's
ongoing commitment to improving customer service, RUS has amended a
number of its regulations and practices involving its oversight of
borrower systems to update and streamline these requirements. This
regulation is part of RUS' continuing effort to improve customer
service.
This final rule implements recommendations to modify load forecast
requirements which arose out of the RUS strategic planning process.
[[Page 14786]]
These changes simplify the procedure and minimize the detail of
information RUS needs for loan feasibility determinations. The
revisions to the existing rule balance RUS' continuing need to maintain
current up-to-date load forecast information for electric borrowers
with its goal of reducing regulatory requirements and burdens on
borrowers.
In the usual course of business, all prudent utilities engage in a
continuing planning process incorporating objective load forecasts in
order to provide reliable electric service for their existing and
future customers. Borrowers submit their load forecasts and load
forecast work plans to RUS in order to provide the necessary support
for RUS approval of loans and a basis for RUS to monitor future
borrower performance for loan security purposes. This rule modifies the
existing requirements and reduce the number of borrower systems
required to maintain current load forecasts on file with RUS. These
changes allow borrowers greater flexibility in preparation of the load
forecasts and supporting information submitted to RUS and will reduce
burdens on both borrowers and the RUS electric program.
Comments
RUS received comments from two commenters to the proposed
regulation published in the Federal Register on July 7, 1999, at 64 FR
36609. One commenter maintained that it was inappropriate for RUS to
reduce its oversight of rural electric borrowers. In response to this
comment RUS notes that most distribution borrowers and all power supply
borrowers are required by the regulation to submit a separate and
current load forecast when requesting a loan or loan guarantee. In
addition, borrowers requesting relatively small loans must submit their
load data and supporting material as part of their financial forecast.
Because of the small size of the loans relative to the borrower's total
utility plant, RUS believes that a detailed load forecast is not needed
to evaluate a borrower's request. Power supply borrowers are required
to submit a detailed load forecast but are not required to incorporate
their member forecasts. Large power supply borrowers must provide a
detailed forecast incorporating their member forecasts. RUS believes
that this approach provides the agency with adequate decision support
for the type and magnitude of the loans and guarantees under
consideration. No changes in the proposed regulation are required.
The second commenter was a power supply borrower that had questions
regarding what type forecast was necessary for members of a large power
supply borrower that are not RUS borrowers. RUS believes that for a
load forecast to be valid it must address 100 percent of the borrowers
anticipated load. It is incumbent on the borrower to determine what
constitutes an appropriate forecast. No changes in the proposed
regulation are required.
List of Subjects 7 CFR Part 1710
Electric power, Electric utilities loan programs--energy, Reporting
and recordkeeping requirements, Rural areas.
For the reasons set out in the preamble, RUS amends 7 CFR chapter
XVII as follows:
PART 1710--GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO
INSURED AND GUARANTEED ELECTRIC LOANS
1. The authority citation for part 1710 is revised to read as
follows:
Authority: 7 U.S.C. et seq., 1921 et seq., and 6941 et seq.
2. Section 1710.2(a) is amended by revising the definition of Power
requirements study (PRS) and by adding the remaining definitions in
alphabetical order:
Sec. 1710.2 Definitions and rules of construction.
* * * * *
Approved load forecast means a load forecast that RUS has
determined is current for RUS purposes and has been approved by RUS
pursuant to 7 CFR part 1710, subpart E.
Approved load forecast work plan means a load forecast work plan
that RUS has determined is current for RUS' purposes and has been
approved pursuant to 7 CFR part 1710, subpart E.
* * * * *
Load forecast means the thorough study of a borrower's electric
loads and the factors that affect those loads in order to determine, as
accurately as practicable, the borrower's future requirements for
energy and capacity.
Load forecast work plan means the plan that contains the resources,
methods, schedules, and milestones to be used in the preparation and
maintenance of a load forecast.
* * * * *
Power requirements study (PRS) has the same meaning as load
forecast.
* * * * *
PRS work plan has the same meaning as load forecast work plan.
* * * * *
3. Revise Sec. 1710.152(a) to read as follows:
Sec. 1710.152 Primary Support Documents.
* * * * *
(a) Load forecast. The load forecast provides the borrower and RUS
with an understanding of the borrower's future system loads, the
factors influencing those loads, and estimates of future loads. The
load forecast provides a basis for projecting annual electricity (kWh)
sales and revenues, and for engineering estimates of plant additions
required to provide reliable service to meet the forecasted loads.
Subpart E of this part contains the information to be included in a
load forecast and when an approved load forecast is required.
* * * * *
4. Revise subpart E of part 1710 to read as follows:
Subpart E--Load Forecasts
Sec.
1710.200 Purpose.
1710.201 General.
1710.202 Requirement to prepare a load forecast-power supply
borrowers.
1710.203 Requirement to prepare a load forecast-distribution
borrowers.
1710.204 Filing requirements for borrowers that must maintain a
current RUS approved load forecast on an ongoing basis.
1710.205 Minimum requirements for all borrower load forecasts.
1710.206 Requirements for load forecasts prepared pursuant to RUS
approved load forecast work plans.
1710.207 RUS approval criteria for approval of load forecasts by
distribution borrowers not required to maintain a current load
forecast on an ongoing basis.
1710.208 RUS approval criteria for load forecasts submitted by all
power supply borrowers and by distribution borrowers required to
maintain a current load forecast on an ongoing basis.
1710.209 Requirements for load forecast work plans.
1710.210 Waiver of requirements or approval criteria.
1710.211-1710.249 [Reserved]
Subpart E--Load Forecasts
Sec. 1710.200 Purpose.
This subpart contains RUS policies for the preparation, review,
approval and use of load forecasts and load forecast work plans. A load
forecast is a thorough study of a borrower's electric loads and the
factors that affect those loads in order to estimate, as accurately as
practicable, the borrower's future requirements for energy and
capacity. The load forecast of a power supply borrower includes and
integrates the load forecasts of its member systems. An approved load
forecast, if required by
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this subpart, is one of the primary documents that a borrower is
required to submit to support a loan application.
Sec. 1710.201 General.
(a) The policies, procedures and requirements in this subpart are
intended to implement provisions of the loan documents between RUS and
the electric borrowers and are also necessary to support approval by
RUS of requests for financial assistance.
(b) Notwithstanding any other provisions of this subpart, RUS may
require any power supply or distribution borrower to prepare a new or
updated load forecast for RUS approval or to maintain an approved load
forecast on an ongoing basis, if such documentation is necessary for
RUS to determine loan feasibility, or to ensure compliance under the
loan documents.
Sec. 1710.202 Requirement to prepare a load forecast--power supply
borrowers.
(a) A power supply borrower with a total utility plant of $500
million or more must maintain an approved load forecast that meets the
requirements of this subpart on an ongoing basis and provide an
approved load forecast in support of any request for RUS financial
assistance. The borrower must also maintain an approved load forecast
work plan. The borrower's approved load forecast must be prepared
pursuant to the approved load forecast work plan.
(b) A power supply borrower that is a member of another power
supply borrower that has a total utility plant of $500 million or more
must maintain an approved load forecast that meets the requirements of
this subpart on an ongoing basis and provide an approved load forecast
in support of any request for RUS financial assistance. The member
power supply borrower may comply with this requirement by participation
in and inclusion of its load forecasting information in the approved
load forecast of its power supply borrower. The approved load forecasts
must be prepared pursuant to the RUS approved load forecast work plan.
(c) A power supply borrower that has total utility plant of less
than $500 million and that is not a member of another power supply
borrower with a total utility plant of $500 million or more must
provide an approved load forecast that meets the requirements of this
subpart in support of an application for any RUS loan or loan guarantee
which exceeds $50 million. The borrower is not required to maintain on
an ongoing basis either an approved load forecast or an approved load
forecast work plan.
Sec. 1710.203 Requirement to prepare a load forecast--distribution
borrowers.
(a) A distribution borrower that is a member of a power supply
borrower with a total utility plant of $500 million or more must
maintain an approved load forecast that meets the requirements of this
subpart on an ongoing basis and provide an approved load forecast in
support of any request for RUS financial assistance. The distribution
borrower may comply with this requirement by participation in and
inclusion of its load forecasting information in the approved load
forecast of its power supply borrower. The distribution borrower's load
forecast must be prepared pursuant to the approved load forecast work
plan of its power supply borrower.
(b) A distribution borrower that is a member of a power supply
borrower which is itself a member of another power supply borrower that
has a total utility plant of $500 million or more must maintain an
approved load forecast that meets the requirements of this subpart on
an ongoing basis and provide an approved load forecast in support of
any request for RUS financial assistance. The distribution borrower may
comply with this requirement by participation in and inclusion of its
load forecasting information in the approved load forecast of its power
supply borrower. The distribution borrower's approved load forecast
must be prepared pursuant to the approved load forecast work plan of
the power supply borrower with total utility plant in excess of $500
million.
(c) A distribution borrower that is a member of a power supply
borrower with a total utility plant of less than $500 million must
provide an approved load forecast that meets the requirements of this
subpart in support of an application for any RUS loan or loan guarantee
that exceeds $3 million or 5 percent of total utility plant, whichever
is greater. The distribution borrower may comply with this requirement
by participation in and inclusion of its load forecasting information
in the approved load forecast of its power supply borrower. The
borrower is not required to maintain on an ongoing basis either an
approved load forecast or an approved load forecast work plan.
(d) A distribution borrower with a total utility plant of less than
$500 million and that is unaffiliated with a power supply borrower must
provide an approved load forecast that meets the requirements of this
subpart in support of an application for any RUS loan or loan guarantee
which exceeds $3 million or 5 percent of total utility plant, whichever
is greater. The borrower is not required to maintain on an ongoing
basis either an approved load forecast or an approved load forecast
work plan.
(e) A distribution borrower with a total utility plant of $500
million or more must maintain an approved load forecast that meets the
requirements of this subpart on an ongoing basis and provide an
approved load forecast in support of any request for RUS financing
assistance. The borrower must also maintain an approved load forecast
work plan. The distribution borrower may comply with this requirement
by participation in and inclusion of its load forecasting information
in the approved load forecast of its power supply borrower.
Sec. 1710.204 Filing requirements for borrowers that must maintain an
approved load forecast on an ongoing basis.
(a) Filing of load forecasts and updates. A power supply or
distribution borrower required to maintain an approved load forecast on
an ongoing basis under Sec. 1710.202 or Sec. 1710.203 may elect either
of the following two methods of compliance:
(1) Submitting a new load forecast to RUS for review and approval
at least every 36 months, and then submitting updates to the load
forecast to RUS for review and approval in each intervening year; or
(2) Submitting a new load forecast to RUS for review and approval
not less frequently than every 24 months.
(b) Extensions. RUS may extend any time period required under this
section for up to 3 months at the written request of the borrower's
general manager. A request to extend a time period beyond 3 months must
be accompanied by a written request from the borrower's general
manager, an amendment to the borrower's approved load forecast work
plan incorporating the extension, a board resolution approving the
extension request and any amendment to the approved load forecast work
plan, and any other relevant supporting information. RUS may extend the
time periods contained in this section for up to 24 months.
Sec. 1710.205 Minimum approval requirements for all load forecasts.
(a) Documents required for RUS approval of a borrower's load
forecast. The borrower must provide the following documents to obtain
RUS approval for a load forecast:
(1) The load forecast and supporting documentation;
(2) A memorandum from the borrower's general manager to the board
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of directors recommending that the board approve the load forecast and
its uses; and
(3) A board resolution from the borrower's board of directors
approving the load forecast and its uses.
(b) Contents of Load Forecast. All load forecasts submitted by
borrowers for approval must include:
(1) A narrative describing the borrower's system, service
territory, and consumers;
(2) A narrative description of the borrower's load forecast
including future load projections, forecast assumptions, and the
methods and procedures used to develop the forecast;
(3) Projections of usage by consumer class, number of consumers by
class, annual system peak demand, and season of peak demand for the
number of years agreed upon by RUS and the borrower;
(4) A summary of the year-by-year results of the load forecast in a
format that allows efficient transfer of the information to other
borrower planning or loan support documents;
(5) The load impacts of a borrower's demand side management
activities, if applicable;
(6) Graphic representations of the variables specifically
identified by management as influencing a borrower's loads; and
(7) A database that tracks all relevant variables that might
influence a borrower's loads.
(c) Formats. RUS does not require a specific format for the
narrative, documentation, data, and other information in the load
forecast, provided that all required information is included and
available. All data must be in a tabular form that can be transferred
electronically to RUS computer software applications. RUS will evaluate
borrower load forecasts for readability, understanding, filing, and
electronic access. If a borrower's load forecast is submitted in a
format that is not readily usable by RUS or is incomplete, RUS will
require the borrower to submit the load forecast in a format acceptable
to RUS.
(d) Document retention. The borrower must retain its latest
approved load forecasts, and supporting documentation until RUS
approval of its next load forecast. Any approved load forecast work
plan must be retained as part of the approved load forecast.
(e) Consultation with RUS. The borrower must designate and make
appropriate staff and consultants available for consultation with RUS
to facilitate RUS review of the load forecast work plan and the load
forecast when requested by RUS.
(f) Correlation and consistency with other RUS loan support
documents. If a borrower relies on an approved load forecast or an
update of an approved load forecast as loan support, the borrower must
demonstrate that the approved load forecast and the other primary
support documentation for the loan were reconciled. For example, both
the load forecast and the financial forecast require input assumptions
for wholesale power costs, distribution costs, other systems costs,
average revenue per kWh, and inflation. Also, a borrower's engineering
planning documents, such as the construction work plan, incorporate
consumer and usage per consumer projections from the load forecast to
develop system design criteria. The assumptions and data common to all
the documents must be consistent.
(g) Coordination. Power supply borrowers and their members that are
subject to the requirement to maintain an approved load forecast on an
ongoing basis are required to coordinate preparation of their
respective load forecasts, updates of load forecasts, and approved load
forecast work plan. A load forecast of a power supply borrower must
consider the load forecasts of all its member systems.
Sec. 1710.206 Approval requirements for load forecasts prepared
pursuant to approved load forecast work plans.
(a) Contents of load forecasts prepared under an approved load
forecast work plan. In addition to the minimum requirements for load
forecasts under Sec. 1710.205, load forecasts developed and submitted
by borrowers required to have an approved load forecast work plan shall
include the following:
(1) Scope of the load forecast. The narrative shall address the
overall approach, time periods, and expected internal and external uses
of the forecast. Examples of internal uses include providing
information for developing or monitoring demand side management
programs, supply resource planning, load flow studies, wholesale power
marketing, retail marketing, cost of service studies, rate policy and
development, financial planning, and evaluating the potential effects
on electric revenues caused by competition from alternative energy
sources or other electric suppliers. Examples of external uses include
meeting state and Federal regulatory requirements, obtaining financial
ratings, and participation in reliability council, power pool, regional
transmission group, power supplier or member system forecasting and
planning activities.
(2) Resources used to develop the load forecast. The discussion
shall identify and discuss the borrower personnel, consultants, data
processing, methods and other resources used in the preparation of the
load forecast. The borrower shall identify the borrower's member and,
as applicable, member personnel that will serve as project leaders or
liaisons with the authority to make decisions and commit resources
within the scope of the current and future work plans.
(3) A comprehensive description of the database used in the study.
The narrative shall describe the procedures used to collect, develop,
verify, validate, update, and maintain the data. A data dictionary
thoroughly defining the database shall be included. The borrower shall
make all or parts of the database available or otherwise accessible to
RUS in electronic format, if requested.
(4) A narrative for each new load forecast or update of a load
forecast discussing the methods and procedures used in the analysis and
modeling of the borrower's electric system loads as provided for in the
load forecast work plan.
(5) A narrative discussing the borrower's past, existing, and
forecast of future electric system loads. The narrative must identify
and explain substantive assumptions and other pertinent information
used to support the estimates presented in the load forecast.
(6) A narrative discussing load forecast uncertainty or alternative
futures that may determine the borrower's actual loads. Examples of
economic scenarios, weather conditions, and other uncertainties that
borrowers may decide to address in their analysis include:
(i) Most-probable assumptions, with normal weather;
(ii) Pessimistic assumptions, with normal weather;
(iii) Optimistic assumptions, with normal weather;
(iv) Most-probable assumptions, with severe weather;
(v) Most-probable assumptions, with mild weather;
(vi) Impacts of wholesale or retail competition; or
(vii) new environmental requirements.
(7) A summary of the forecast's results on an annual basis. Include
alternative futures, as applicable. This summary shall be designed to
accommodate the transfer of load forecast information to a borrower's
other planning or loan support documents. Computer-generated forms or
electronic
[[Page 14789]]
submissions of data are acceptable. Graphs, tables, spreadsheets or
other exhibits shall be included throughout the forecast as
appropriate.
(8) A narrative discussing the coordination activities conducted
between a power supply borrower and its members, as applicable, and
between the borrower and RUS.
(b) Compliance with an approved load forecast work plan. A borrower
required to maintain an approved load forecast work plan must also be
able to demonstrate that both it and its RUS borrower members are in
compliance with its approved load forecast work plan for the next load
forecast or update of a load forecast.
Sec. 1710.207 RUS criteria for approval of load forecasts by
distribution borrowers not required to maintain an approved load
forecast on an ongoing basis.
Load forecasts submitted by distribution borrowers that are
unaffiliated with a power supply borrower, or by distribution borrowers
that are members of a power supply borrower that has a total utility
plant less than $500 million and that is not itself a member of another
power supply borrower with a total utility plant of $500 million or
more must satisfy the following minimum criteria:
(a) The borrower considered all known relevant factors that
influence the consumption of electricity and the known number of
consumers served at the time the study was developed;
(b) The borrower considered and identified all loads on its system
of RE Act beneficiaries and non-RE Act beneficiaries;
(c) The borrower developed an adequate supporting data base and
considered a range of relevant assumptions; and
(d) The borrower provided RUS with adequate documentation and
assistance to allow for a thorough and independent review.
Sec. 1710.208 RUS criteria for approval of all load forecasts by power
supply borrowers and by distribution borrowers required to maintain an
approved load forecast on an ongoing basis.
All load forecasts submitted by power supply borrowers and by
distribution borrowers required to maintain an approved load forecast
must satisfy the following criteria:
(a) The borrower objectively analyzed all known relevant factors
that influence the consumption of electricity and the known number of
customers served at the time the study was developed;
(b) The borrower considered and identified all loads on its system
of RE Act beneficiaries and non-RE Act beneficiaries;
(c) The borrower developed an adequate supporting database and
analyzed a reasonable range of relevant assumptions and alternative
futures;
(d) The borrower adopted methods and procedures in general use by
the electric utility industry to develop its load forecast;
(e) The borrower used valid and verifiable analytical techniques
and models;
(f) The borrower provided RUS with adequate documentation and
assistance to allow for a thorough and independent review; and
(g) In the case of a power supply borrower required to maintain an
approved load forecast on an ongoing basis, the borrower adequately
coordinated the preparation of the load forecast work plan and load
forecast with its member systems.
Sec. 1710.209 Approval requirements for load forecast work plans.
(a) In addition to the approved load forecast required under
Secs. 1710.202 and 1710.203, any power supply borrower with a total
utility plant of $500 million or more and any distribution borrower
with a total utility plant of $500 million or more must maintain an
approved load forecast work plan. RUS borrowers that are members of a
power supply borrower with a total utility plant of $500 million or
more must cooperate in the preparation of and submittal of the load
forecast work plan of their power supply borrower.
(b) An approved load forecast work plan establishes the process for
the preparation and maintenance of a comprehensive database for the
development of the borrower's load forecast, and load forecast updates.
The approved load forecast work plan is intended to develop and
maintain a process that will result in load forecasts that will meet
the borrowers' own needs and the requirements of this subpart. An
approved work plan represents a commitment by a power supply borrower
and its members, or by a large unaffiliated distribution borrower, that
all parties concerned will prepare their load forecasts in a timely
manner pursuant to the approved load forecast work plan and they will
modify the approved load forecast work plan as needed with RUS approval
to address changing circumstances or enhance the usefulness of the
approved load forecast work plan.
(c) An approved load forecast work plan for a power supply borrower
and its members must cover all member systems, including those that are
not borrowers. However, only members that are borrowers, including the
power supply borrower, are required to follow the approved load
forecast work plan in preparing their respective load forecasts. Each
borrower is individually responsible for forecasting all its RE Act
beneficiary and non-RE Act beneficiary loads.
(d) An approved load forecast work plan must outline the
coordination and preparation requirements for both the power supply
borrower and its members.
(e) An approved load forecast work plan must cover a period of 2 or
3 years depending on the applicable compliance filing schedule elected
under Sec. 1710.204.
(f) An approved load forecast work plan must describe the
borrower's process and methods to be used in producing the load
forecast and maintaining current load forecasts on an ongoing basis.
(g) Approved load forecast work plans for borrowers with
residential demand of 50 percent or more of total kWh must provide for
a residential consumer survey at least every 5 years to obtain data on
appliance and equipment saturation and electricity demand. Any such
borrower that is experiencing or anticipates changes in usage patterns
shall consider surveys on a more frequent schedule. Power supply
borrowers shall coordinate such surveys with their members. Residential
consumer surveys may be based on the aggregation of member-based
samples or on a system-wide sample, provided that the latter provides
for relevant regional breakdowns as appropriate.
(h) Approved load forecast work plans must provide for RUS review
of the load forecasts as the load forecast is being developed.
(i) A power supply borrower's work plan must have the concurrence
of the majority of the members that are borrowers.
(j) The borrower's board of directors must approve the load
forecast work plan.
(k) A borrower may amend its approved load forecast work plan
subject to RUS approval. If RUS concludes that the existing approved
load forecast work plan will not result in a satisfactory load
forecast, RUS may require a new or revised load forecast work plan.
Sec. 1710.210 Waiver of requirements or approval criteria.
For good cause shown by the borrower, the Administrator may waive
any of the requirements applicable to borrowers in this subpart if the
[[Page 14790]]
Administrator determines that waiving the requirement will not
significantly affect accomplishment of RUS' objectives and if the
requirement imposes a substantial burden on the borrower. The
borrower's general manager must request the waiver in writing.
Secs. 1710.211-1710.249 [Reserved]
Dated: March 10, 2000.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 00-6761 Filed 3-17-00; 8:45 am]
BILLING CODE 3410-15-P