[Federal Register Volume 68, Number 42 (Tuesday, March 4, 2003)]
[Notices]
[Pages 10233-10237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4993]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Post-2005 Resource Pool, Pick-Sloan Missouri Basin Program, 
Eastern Division

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed procedures and call for applications.

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SUMMARY: Western Area Power Administration (Western), Upper Great 
Plains Customer Service Region, a Federal power marketing agency of the 
Department of Energy (DOE), is publishing this notice to seek comments 
on proposed procedures and call for applications from preference 
entities interested in an allocation of Federal power. The Energy 
Planning and Management Program (Program) provides for establishing 
project-specific resource pools and allocating power from these pools 
to new preference customers and other purposes as determined by 
Western. Western, in accordance with the Program, proposes allocation 
procedures for comment and consideration for entities interested in a 
Federal power resource pool increment

[[Page 10234]]

of up to 1 percent (approximately 20 megawatts) of the long-term 
marketable resource of the Pick-Sloan Missouri Basin Program, Eastern 
Division (P-SMBP-ED) that may become available January 1, 2006. 
Preference entities that wish to apply for an allocation of power from 
Western's Upper Great Plains Customer Service Region must submit formal 
applications as outlined below.

DATES: Entities interested in commenting on proposed procedures and/or 
applying for an allocation of Western power must submit written 
comments and/or applications to Western's Upper Great Plains Customer 
Service Regional Office at the address below. Western must receive 
written and/or electronic comments and/or applications by 4 p.m., MDT, 
on June 2, 2003. Entities are encouraged to use certified mail, e-mail, 
or fax for delivery of comments and/or applications. Western will 
accept comments and/or applications received via regular mail through 
the United States Postal Service if postmarked at least 3 days before 
June 2, 2003, and received no later than June 9, 2003. Western reserves 
the right to not consider any comments and/or applications that are not 
received by the prescribed dates and times. Western will hold public 
information forums (not to exceed 2 hours) and public comment forums 
(immediately following the information forums) on the proposed 
procedures and applications.
    The public information and comment forum dates are:
    1. April 8, 2003, 1 p.m. to 5 p.m., Billings, Montana.
    2. April 9, 2003, 1 p.m. to 5 p.m., Moorhead, Minnesota.
    3. April 10, 2003, 9 a.m. to 1 p.m., Sioux City, Iowa.

ADDRESSES: Send applications for an allocation of Western power and 
written comments regarding these proposed procedures to Robert J. 
Harris, Regional Manager, Upper Great Plains Customer Service Region, 
Western Area Power Administration, 2900 4th Avenue North, Billings, MT 
59101-1266. Applications for an allocation of Western power and 
comments on the proposed procedures may also be faxed to (406) 247-7408 
or e-mailed to [email protected]. Applications are available upon 
request or may be accessed at http://www.wapa.gov/ugp/contracts/post2005/APD.htm. Applicants are encouraged to use the application form 
provided at the above Web site.
    The public information and comment forum locations are:
    1. Billings--Holiday Inn Billings Plaza Hotel and Convention 
Center, 5500 Midland Road, Billings, MT 59101
    2. Moorhead--Courtyard by Marriott, Moorhead Area Conference 
Center, 1080 28th Avenue South, Moorhead, MN 56560
    3. Sioux City--Hilton Sioux City, 707 Fourth Street, Sioux City, IA 
51101-1701

FOR FURTHER INFORMATION CONTACT: Jon R. Horst, Public Utilities 
Specialist, Upper Great Plains Customer Service Region, Western Area 
Power Administration, 2900 4th Avenue North, Billings, MT 59101-1266, 
telephone (406) 247-7444, e-mail [email protected].
    All documents developed or retained by Western in developing this 
Post-2005 Resource Pool will be available for inspection and copying at 
the Upper Great Plains Customer Service Region in Billings, Montana. 
Public comments will be available for viewing at http://www.wapa.gov/ugp/contracts/post2005/comments.htm after the close of the comment 
period.

SUPPLEMENTARY INFORMATION: On October 20, 1995, Western published the 
Final Program Rule. The Final Rule became effective on November 20, 
1995. Subpart C-Power Marketing Initiative of the Program, Final Rule, 
10 CFR part 905, provides for project-specific resource pools and 
allocations of power from these pools to eligible new customers and/or 
for other appropriate purposes as determined by Western. The additional 
resource pool increments shall be established by pro rata withdrawals, 
on 2 years' notice, from then-existing customers. Specifically, 10 CFR 
section 905.32 (b) provides:

    At two 5-year intervals after the effective date of the 
extension to existing customers, Western shall create a project-
specific resource pool increment of up to 1 percent of the long-term 
marketable resource under contract at the time. The size of the 
additional resource pool increment shall be determined by Western 
based on consideration of the actual fair-share needs of eligible 
new customers and other appropriate purposes.

    On April 22, 2002, Western published a Notice for Letters of 
Interest in the Federal Register (67 FR 19571) in which Western 
solicited and received Letters of Interest regarding a resource pool of 
up to 1 percent (approximately 20 megawatts) of the marketable resource 
that may become available January 1, 2006, for new customers and/or 
other appropriate purposes pursuant to the Program. Traditionally, 
Western has marketed allocations of firm power to be apportioned to 
eligible new preference entities in such a manner as to encourage the 
most widespread use thereof, in accordance with Federal Reclamation 
Law.

Letters of Interest

    Western received 65 Letters of Interest regarding the up to 1 
percent resource pool. The letters were evaluated and categorized into 
three main areas of interest. Sixteen letters were from entities 
interested in becoming a new customer. Eleven letters were from 
entities that expressed an interest in other appropriate purposes such 
as: increasing current customer allocations, adjusting past 
allocations, and supporting renewable resources. Thirty-eight of the 
letters were from entities that recommended Western forego 
implementation of the proposed resource pool. The 38 letters also 
recommended if Western proceeds with the proposed resource pool, the 
pool should not be made available for other appropriate purposes.

Response to Letters of Interest

    Western has historically marketed power from resource pools to new 
preference customers through marketing plans and initiatives. Western 
recognizes the interest expressed from 16 potential new customers in an 
allocation from the P-SMBP-ED. Western encourages the new customer 
interest that lends support to Western's mission of allocating low-cost 
hydropower in such a way as to promote the most widespread use thereof.
    Western received various Letters of Interest regarding the need for 
other appropriate purposes. Several letters were received from entities 
desiring adjustments or increases to their current allocations. 
Specifically, two letters were received in support of adjusting two 
separate Tribal allocations from the P-SMBP-ED Post-2000 Resource Pool 
(62 FR 11174) (Post-2000 Resource Pool). Also, several letters were 
received from municipal utilities in support of increasing their 
current allocations. Historically, Western has not changed or increased 
allocations within the P-SMBP-ED that were established in past 
marketing initiatives. Western recognizes that customer loads continue 
to grow and change and increases in individual allocations would be 
beneficial. However, if Western were to entertain requests for 
increases or adjustments to allocations, all customers would need to be 
afforded the opportunity to submit new applications. If this were to 
occur, it is likely Western would receive significant modification 
requests, which would be extremely difficult to substantiate and likely 
not be supportable with the power available from this resource pool. 
Any significant modifications could result in a new

[[Page 10235]]

marketing plan which is not the intent of the Program. Therefore, 
Western is not proposing to adjust or increase current customer 
allocations.
    Other comments received suggested supporting renewable resources as 
an other appropriate purpose for the resource pool. Comments suggested 
that any commitment of the resource pool to support renewable resources 
through allocations should be subject to existing laws, regulations, 
and guidelines set forth in previous marketing initiatives, 
specifically the requirement that any applicant must meet preference 
status. Western agrees that any use of the resource pool must comply 
with existing laws, regulations, and guidelines, and must be made to 
preference entities. Western has allocated power to the majority of 
eligible preference entities within the P-SMBP-ED marketing area. 
Should a renewable resource program be developed using power from this 
resource pool, Western would be withdrawing power from entities across 
the region to develop a very small renewable program available to these 
same entities. Western believes the best manner to support renewable 
resources with this power is to allow existing customers to retain the 
power that may be available after allocating to new customers. This 
will allow all preference entities across the marketing area to 
leverage this power and use existing allocations to support renewable 
resources if they so choose. Western recognizes that many customers are 
already demonstrating support of renewable resources through their 
investments in various wind projects across the P-SMBP-ED marketing 
area near Moorhead, Minnesota; Lincoln, Nebraska; Grand Forks, Minot, 
and Valley City, North Dakota; and also in Chamberlain and Howard, 
South Dakota. Wind projects are being developed and implemented by 
Western's customers regardless of any potential new allocation from 
this resource pool.

Use of the Post-2005 Resource Pool

    Based on examination of the Letters of Interest, Western has 
determined the resource pool should be made available to new preference 
customers and is not proposing to use a share of the resource pool for 
other appropriate purposes. Allocations to new preference customers 
shall be made in accordance with the P-SMBP-ED Final Post-1985 
Marketing Plan (45 FR 71860) (Post-1985 Marketing Plan) and the 
Program. Western intends to carry forward the key principles and 
criteria that were established in the Post-2000 Resource Pool, except 
as modified herein.

The Proposed Post-2005 Resource Pool Allocation Procedures

    These proposed procedures for the P-SMBP-ED address (1) eligibility 
criteria; (2) how Western plans to allocate the resource pool in 
accordance with the Program to eligible applicants as new preference 
customers and not for other appropriate purposes; and (3) the terms and 
conditions under which Western will sell the power allocated.

I. Amount of Pool Resources

    Western proposes to allocate up to 1 percent (approximately 20 
megawatts) of the P-SMBP-ED long-term firm hydroelectric resource 
available as of January 1, 2006, as firm power to eligible new 
preference customers. Firm power means capacity and associated energy 
allocated by Western and subject to the terms and conditions specified 
in the Western electric service contract.

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-2005 Resource Pool Allocation Procedures.
    A. Qualified applicants must be preference entities as defined by 
section 9(c) of the Reclamation Project Act of 1939, 43 U.S.C. 485h(c), 
as amended and supplemented.
    B. Qualified applicants must be located within the currently 
established P-SMBP-ED marketing area.
    C. Qualified applicants must not be currently receiving benefits, 
directly or indirectly, from a current P-SMBP-ED firm power allocation. 
Qualified Native American applicants, who did not receive an allocation 
from the Post-2000 Resource Pool, are not subject to this requirement.
    D. Qualified utility and non-utility applicants must be able to use 
the firm power directly or be able to sell it directly to retail 
customers.
    E. Qualified utility applicants that desire to purchase power from 
Western for resale to consumers, including cooperatives, 
municipalities, public utility districts, and public power districts 
must have met utility status by January 1, 2003. Utility status means 
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. Qualified Native American applicants must be a Native American 
tribe 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-2005 Resource Pool Allocation Procedures.
    A. Allocations of firm power will be made in amounts as determined 
solely by Western in exercise of its discretion under Federal 
Reclamation Law.
    B. An allottee will have the right to purchase firm power only upon 
the execution of an electric service contract between Western and the 
allottee, and satisfaction of all conditions in that contract.
    C. Firm power allocated under these procedures will be available 
only to new preference customers in the existing P-SMBP-ED marketing 
area. This marketing area includes Montana (east of the Continental 
Divide), North Dakota, South Dakota, and specific areas in western 
Iowa, western Minnesota and eastern Nebraska. The marketing area of the 
P-SMBP-ED is Montana east of the Continental Divide, all of North and 
South Dakota, Nebraska east of the 101[deg] meridian, Iowa west of the 
94\1/2\[deg] meridian, and Minnesota west of a line on the 94\1/2\[deg] 
meridian from the southern boundary of the state to the 46[deg] 
parallel and thence northwesterly to the northern boundary of the state 
at the 96\1/2\[deg] meridian.
    D. Allocations made to Native American tribes will be based on the 
actual load experienced in calendar year 2002. Western has the right to 
use estimated load values should actual load data not be available. 
Western will adjust inconsistent estimates during the allocation 
process.
    E. Allocations made to qualified utility and non-utility applicants 
will be based on the actual loads experienced in calendar year 2002. 
Western will apply the Post-1985 Marketing Plan and the Program 
criteria to these loads. Western will carry forward key principles and 
criteria established in the Post-2000 Resource Pool, except as modified 
herein.
    F. Energy provided with firm power will be based upon the 
customer's monthly system load pattern.
    G. Any electric service contract offered to a new customer shall be 
executed by the customer within 6 months of a contract offer by 
Western, unless otherwise agreed to in writing by Western.
    H. The resource pool will be dissolved subsequent to the closing 
date for executing firm power contracts. Firm

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power not under contract will be used as determined by Western.

I. The minimum allocation shall be 100 kilowatts (kW).

    J. The maximum allocation for qualified utility and non-utility 
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. If unanticipated obstacles to the delivery of hydropower 
benefits to Native American tribes arise, Western retains the right to 
provide the economic benefits of its resources directly to the tribes.

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-2005 Resource Pool Allocation Procedures.
    A. Western shall reserve the right to reduce a customer's summer 
season contract rate of delivery by up to 5 percent for new project 
pumping requirements, by giving a minimum of 5 years' written notice in 
advance of such action.
    B. Western, at its discretion and sole determination, shall reserve 
the right to adjust the contract rate of delivery on 5 years' written 
notice in response to changes in hydrology and river operations. Any 
such adjustments shall only take place after a public process by 
Western.
    C. Each allottee is ultimately responsible for obtaining its own 
third-party delivery arrangements. Western may assist the allottee in 
obtaining third-party transmission arrangements for delivery of firm 
power allocated under these procedures to new customers.
    D. Contracts entered into under the Post-2005 Resource Pool 
Allocation Procedures shall provide for Western to furnish firm 
electric service effective from January 1, 2006, through December 31, 
2020.
    E. Contracts entered into as a result of the proposed procedures 
shall incorporate Western's standard provisions for power sales 
contracts, integrated resource planning, and the general power contract 
provisions.
    F. Contracts entered into will include provisions for a reduction 
of up to 1 percent of the current contracted rate of delivery effective 
January 1, 2011, in accordance with the Program.

V. Applications for Firm Power

    This notice formally requests applications from qualified entities 
wishing to purchase power from the Upper Great Plains Customer Service 
Region. Applicant Profile Data (APD) is requested so Western will have 
a uniform basis upon which to evaluate the applications. To be 
considered, applicants must submit an application to the Upper Great 
Plains Customer Service Region as requested below. To ensure that full 
consideration is given to all applicants, Western will not consider 
applications submitted before publication of this notice or after the 
deadlines specified in the Dates Section. Applications are available 
upon request or may be accessed at http://www.wapa.gov/ugp/contracts/post2005/APD.htm. Applicants are encouraged to use the application form 
provided at the above Web site.

A. Applicant Profile Data Application

    The content and format of the APD are outlined below. 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 is 
not applicable. 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. The APD 
shall consist of the following:
1. Applicant
    a. Applicant's (entity requesting a new allocation) name and 
address.
    b. Person(s) representing applicant: Please provide the name, 
title, address, telephone and fax number, and e-mail address of such 
person(s).
    c. Type of organization: For example, Federal or state agency, 
irrigation district, municipal, rural, or industrial user, 
municipality, Native American tribe, public utility district, or rural 
electric cooperative. 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. Parent organization of applicant, if any.
    e. Name of members, if any.
    f. Applicable law under which the organization was established.
    g. Applicant's geographic service area: if available, submit a map 
of the service area, and indicate the date prepared.
2. Loads
    a. Utility and Non-utility Applicants:
    i. If applicable, number and type of customers served; e.g., 
residential, commercial, industrial, military base, agricultural.
    ii. The actual monthly maximum demand (in kilowatts) and energy use 
(in kilowatt-hours) experienced in calendar year 2002.
    b. Native American Tribe Applicants:
    i. If applicable, number and type of customers served; e.g., 
residential, commercial, industrial, military base, agricultural.
    ii. The actual monthly maximum demand (in kilowatts) and energy use 
(in kilowatt-hours) experienced in calendar year 2002.
    iii. If actual demand and energy data is not available, provide 
estimated monthly 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 contract(s), including a contract 
termination date. Indicate whether power supply is on a firm basis or 
some other type of arrangement.
4. Transmission
    a. Point(s) 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. Provide a single-line drawing of applicant's system, if one 
is available.
    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 is required.

B. Western's Consideration of Applications

    1. When Western receives the APD, Western will verify 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 information.
    b. If Western determines the applicant does not meet the general 
eligibility

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criteria, Western will send a letter explaining why the applicant did 
not qualify.
    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., 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.

VII. 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.

VIII. Determination 12866

    DOE has determined 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.

IX. 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: February 13, 2003.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 03-4993 Filed 3-3-03; 8:45 am]
BILLING CODE 6450-01-P