[Federal Register Volume 66, Number 212 (Thursday, November 1, 2001)]
[Notices]
[Pages 55171-55172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27435]


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DEPARTMENT OF ENERGY

Bonneville Power Administration


Notice of Revised Schedule Regarding Issues Arising Under 
Bonneville Power Administration's New Large Single Load Policy Review

AGENCY: Bonneville Power Administration (BPA), Department of Energy.

ACTION: Notice of revised schedule for policy issue review and issuance 
of a record of decision.

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SUMMARY: This notice announces a change in the schedule for the policy 
review of certain issues relating to BPA's existing policy on New Large 
Single Loads (NLSL). Three issues were identified in the initial 
Federal Register notice (published June 25, 2001) as follows: (1) BPA 
preference customer service to direct service industrial (DSI) load; 
(2) the transfer of ``contracted for, committed to'' (CFCT) load 
determinations between preference customers; and (3) whether BPA should 
close the class of CFCT load served by BPA customers.

DATES: NLSL ROD publication date on Issues 2 and 3: November or 
December 2001. Record of Decision on Issue 1: late FY 2002.

FOR FURTHER INFORMATION CONTACT: David Fitzsimmons, Account Executive, 
Bonneville Power Administration, P.O. Box 3621, Portland, Oregon 97208, 
telephone (503) 230-3685. Information can also be obtained from your 
BPA Customer Account Executive.

SUPPLEMENTARY INFORMATION:
    Issue 1. BPA received approximately 60 comments on all three 
issues. After a review of the comments, BPA determined that additional 
regional discussion would benefit the resolution of the first issue. 
BPA will invite participation in an appropriate public process for the 
purpose of addressing this issue in a broader context of issues than 
the NLSL policy review affords.

[[Page 55172]]

This extended review is expected to take place during fiscal year 2002 
and may be informed by a more comprehensive process reviewing broader 
electric power issues. Upon conclusion of this process, BPA plans to 
issue a record of decision on the first issue, prior to the end of FY 
2002, taking into consideration the public comment already received and 
any additional comment on the issue received during the extended 
review.
    Issues 2 and 3. The treatment of any transfer of ``contracted for, 
committed to'' (CFCT) loads between public agency or cooperative 
preference customers; and the issue of whether BPA should close the 
class of CFCT load served by BPA customers will be addressed in a 
record of decision which BPA plans to publish during the next sixty 
days.
    BPA is directed by section 3(13) of the Northwest Power Act to 
treat large retail loads at a consumer's facility, served by a public 
body, cooperative, investor-owned utility, or Federal agency customer, 
which load increases power requirements in excess of 10 average 
megawatts (aMW) in any consecutive 12-month period, as within the 
definition of New Large Single Loads. For purposes of BPA's sales of 
electric power to a utility or Federal agency customer, the designation 
of the load at a consumer's facility as a NLSL does not affect the 
amount or quality of electric service which BPA provides. BPA treats 
these loads as any other load in terms of its supply of power and 
quality of service obligations under its utility power sales contracts. 
Designation of a load as a NLSL, however, does affect the power rate of 
the electric power sold for service to that load. BPA may not sell 
electric power at the Priority Firm (PF) rate to utilities for service 
to NLSLs. Rather, electric power sold by BPA for utility service to 
NLSLs is sold at the New Resources (NR) rate, which historically has 
been a higher rate than the PF rate.
    BPA's NLSL policy is a combination of contract and policy decisions 
recorded in several documents. A statement of those decisions has been 
consolidated into one document, and it is available on BPA's Web site: 
http://www.bpa.gov/Power/subscription.
    While BPA received comments on certain aspects of Issue 1, one area 
that had not been addressed in the policy process was the transfer of 
non-DSI loads larger than 9.9 aMW to service from a preference 
customer. Commenters on Issue 1 expressed the desire to address the 
more general issue. That issue is whether BPA should change its NLSL 
policy to allow any large loads at a consumer's facility--new and 
existing--larger than 9.9 aMW to transfer their load service to a 
public body, cooperative or federal agency customer in contract 
increments of only 9.9 aMW [``phase on''], and receive service at BPA's 
PF rate.
    BPA will continue to apply its current policy during the extended 
review period. The policy states that in making any NLSL determinations 
BPA considers the entire load at a consumer's facility. If the total 
electric load associated with a single facility exceeds 9.9 aMW, then 
the entire electrically connected load is the single load which can be 
considered as being served by the utility. A utility has a general 
responsibility to provide service and only limited rights to deny 
service to consumers. If a consumer's facility has a total connected 
load exceeding 9.9 aMW and takes service from a utility, even if 
limited by contract, the load actually placed on the utility is the 
total connected electric load at the facility. The service would be 
declared a NLSL by BPA and served at the applicable NR rate if the 
total plant load that could be served was over 10 aMW.
    A change in this policy could permit any large loads at a 
consumer's facility to separate out the entire load into contract 
increments of 9.9 aMW, regardless of the total load, and to place the 
9.9 aMW per year increments of load on a preference customer at BPA's 
applicable PF rate. Some comments suggested a need for BPA to adopt 
this change in policy, others suggested imposition of a limit on the 
total amount of megawatts that could be transferred under contracts 
with a utility, and others argued for no change in policy. The extended 
review will afford an opportunity for parties to comment on the nature 
and impact of such a change, if any, in the context of future load 
service for these large loads.

    Responsible Official: David Fitzsimmons, Account Executive, 
Power Business Line, is the official responsible for the review of 
these issues arising under BPA's NLSL policy.


    Issued in Portland, Oregon, on October 22, 2001.
Stephen J. Wright,
Acting Administrator, and Chief Executive Officer.
[FR Doc. 01-27435 Filed 10-31-01; 8:45 am]
BILLING CODE 6450-01-P