[Federal Register Volume 67, Number 153 (Thursday, August 8, 2002)]
[Notices]
[Pages 51580-51581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20062]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project--Extension of Electric Power Resource 
Commitments by Application of the Energy Planning and Management 
Program Power Marketing Initiative

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposal.

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SUMMARY: The Western Area Power Administration (Western), a Federal 
power marketing agency of the Department of Energy, announces its Post-
2008 re-marketing effort for the Parker-Davis Project (P-DP). Current 
P-DP long-term, Firm Electric Service (FES) contracts will expire on 
September 30, 2008. In 1995, Western adopted the Power Marketing 
Initiative (PMI) in Subpart C of the Energy Planning and Management 
Program (Program). The Record of Decision for the Program states that 
application of the PMI will be done on a project-specific basis. If, by 
means of a public process, Western applies the PMI to the P-DP, the 
current long-term FES customers of the project would receive an 
extension of a major portion of the resources available to them at the 
time their contracts expire. Western now proposes to apply the PMI to 
the long-term, firm power contracts of the P-DP.

DATES: Western will hold three public information forums on the 
following dates: 1. September 16, 2002, 1 p.m. to 4 p.m., Las Vegas, 
Nevada, 2. September 17, 2002, 1 p.m. to 4 p.m., Phoenix, Arizona, 3. 
September 18, 2002, 1 p.m. to 4 p.m., Ontario, California.
    Following the public information forums, Western will hold three 
public comment forums. The dates for these forums are as follows: 1. 
October 8, 2002, 1 p.m. to 4 p.m., Las Vegas, Nevada, 2. October 9, 
2002, 1 p.m. to 4 p.m., Phoenix, Arizona, 3. October 10, 2002, 1 p.m. 
to 4 p.m., Ontario, California. Western will accept written comments on 
or before November 6, 2002.

ADDRESSES: Comments may be submitted to: Mr. J. Tyler Carlson, Western 
Area Power Administration, Desert Southwest Regional Manager, P.O. Box 
6457, Phoenix, AZ 85005-6457. Comments may also be faxed to (602) 352-
2490 or e-mailed to [email protected].
    The public information and public comment forum locations are:
    1. McCarran International Airport, 5th Floor, Commissioner's 
Meeting Room, Las Vegas, Nevada; 2. Western Area Power Administration, 
Desert Southwest Regional Office, 615 S. 43rd Ave, Phoenix, Arizona; 3. 
DoubleTree Ontario Airport, 222 N. Vineyard, Ontario, California.

FOR FURTHER INFORMATION CONTACT: Roy Tinsley, Project Manager, Desert 
Southwest Region, Western Area Power Administration, 615 S. 43rd Ave., 
Phoenix, AZ 85005, telephone (602) 352-2788, e-mail 
[email protected]. Program information and the current P-DP 
marketing plan are available for viewing at http://www.wapa.gov/dsw/pwrmkt.

SUPPLEMENTARY INFORMATION: In 1987, Western marketed the long-term, 
firm power resources of the Parker and Davis dams and entered into 20-
year term FES contracts with the current P-DP customers. These FES 
contracts will expire on September 30, 2008. Western must determine if 
the PMI, as outlined in the Energy Planning and Management Program 
(Program), will be applied to the P-DP for FES commitments beyond that 
date.
    Western first proposed the Program on April 19, 1991 (56 FR 16093). 
The goals of the Program were to encourage efficient energy use by 
Western's long-term, firm power customers by requiring Integrated 
Resource Planning and to extend Western's firm power resource 
commitments. In the final rule of the Program, Western stated that 
application of the PMI, including the amount of resources extended, 
would initially apply only to the Pick-Sloan Missouri Basin Program-
Eastern Division (P-S) and the Loveland Area Projects (LAP). 
Applicability to other projects would be determined through future, 
project-specific public processes. Specific to the P-DP, the rule 
stated that Western would evaluate application of the PMI to the 
Parker-Davis Project no more than 10 years before existing contracts 
expire.
    The PMI calls for extending a major portion of existing firm power 
sales commitments for 20 years beyond the existing termination date. 
With respect to P-S and LAP, a commitment of not less than 96 percent 
of the hydroelectric power resource determined to be available to the 
customers was to be extended, and a power resource pool of up to 4 
percent of the power from these customers would be created. In 
addition, the PMI states that ``at two 5-year intervals after the 
effective date of the extension to existing customers, Western will 
create a project-specific resource pool increment of up to an 
additional 1 percent of the long-term marketable resource under 
contract at the time.'' The resource pool would be used for allocations 
to new customers. The rule stated that a more precise decision on how 
resource pools would be used, as well as the percentage of existing 
commitments extended, would be determined through future, project-
specific public processes.
    Consistent with the application of the PMI to other recent Western 
marketing efforts, Western proposes to apply the PMI (10 CFR parts 
905.31 through 905.37), to the P-DP. This includes a proposal to extend 
94 percent of the P-DP customers' entitlement of long-term, firm P-DP 
resources as of September 30, 2008, for an additional 20 years. Given 
the direction contained within the PMI for a ``reservation of a modest 
percentage of resources to create a resource pool,'' Western proposes 
that a resource pool of 6 percent of available P-DP resources be 
established for new customers. Western proposes creation of a single, 
one-time resource pool of a definite size, due to the costs and effort 
associated with incremental resource pools as experienced by the P-S 
and LAP projects, and given the small size of the proposed P-DP 
resource pool relative to those of other Western projects. During the 
most recent marketing effort of the Salt Lake City Area Integrated 
Projects, which shares many of the same P-DP customers, a single 
resource pool was created in response to public comments.
    The existing P-DP marketing plan defines the marketing area as 
generally consisting of southern California, southern Nevada, most of 
Arizona, and a small part of New Mexico; and is more specifically 
defined in the Conformed General Consolidated Power Marketing Criteria 
or Regulations for Boulder City Area Projects (49 FR 50582, December 
28, 1984). New customers meeting the requirements established in the P-
DP Marketing Criteria and qualifying Native American tribes within the 
P-DP marketing area will be eligible to request an allocation of 
capacity and energy from the P-DP resource pool. Native American tribes 
need not have utility status to qualify for an allocation.

[[Page 51581]]

Adjustments may be made to resource allocations at any time to reflect 
changes in dam operations and/or water conditions upon 5 years 
notification.
    As provided in the current P-DP Advancement of Funds contract, new 
customers will be required to reimburse existing customers for 
undepreciated replacement advances, to the extent existing customers' 
allocations are reduced as a result of creating the resource pool. New 
customers who receive an allocation will also be required to 
participate in advance funding of Western's and the Bureau of 
Reclamation's operation and maintenance expenses.
    Western is seeking comments regarding the applicability of the PMI 
to the P-DP, the percentage of resources to be extended to existing 
customers, and the size of the proposed resource pool. Following the 
public comment period, Western will analyze the comments received and 
publish its policy regarding extension of resource commitments in the 
Federal Register.

I. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601-621, requires Federal 
agencies to perform a regulatory flexibility analysis if a final 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 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.

II. Small Business Regulatory Enforcement Fairness Act

    Western determined this rule is exempt from congressional 
notification requirements under 5 U.S.C. 801 because the action is a 
rulemaking of particular applicability relating to rates or services 
and involves matters of procedure.

III. Determination 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, this notice requires no 
clearance by the Office of Management and Budget.

IV. Environmental Compliance

    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 60 FR 53181, October 
12, 1995. Western's NEPA review assured all environmental effects 
related to these actions have been analyzed.

    Dated: July 26, 2002.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 02-20062 Filed 8-7-02; 8:45 am]
BILLING CODE 6450-01-P