[Federal Register Volume 68, Number 88 (Wednesday, May 7, 2003)]
[Notices]
[Pages 24445-24446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11313]


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DEPARTMENT OF ENERGY

[Docket Nos. EA-279, PP-16-1 and PP-40-1]


Applications To Transfer Electricity Export Authorizations and 
Presidential Permits; Citizens Communications Company and UniSource 
Energy Company

AGENCY: Office of Fossil Energy, DOE.

ACTION: Notice of application.

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SUMMARY: Citizens Communications Company (Citizens) and UniSource 
Energy Company (UniSource) have jointly applied to transfer Electricity 
Export Authorizations EA-16 and EA-40 and Presidential Permits PP-16 
and PP-40 from Citizens to a new corporate entity affiliated with 
UniSource and currently designated as ``NewCo.''

DATES: Comments, protests or requests to intervene must be submitted on 
or before June 6, 2003.

ADDRESSES: Comments, protests or requests to intervene should be 
addressed as follows: Office of Coal & Power Import/Export (FE-27), 
Office of Fossil Energy, U.S. Department of Energy, 1000 Independence 
Avenue, SW., Washington, DC 20585-0350 (FAX 202-287-5736).

FOR FURTHER INFORMATION CONTACT: Ellen Russell (Program Office) 202-
586-9624 or Michael Skinker (Program Attorney) 202-586-2793.

SUPPLEMENTARY INFORMATION: Exports of electricity from the United 
States to a foreign country are regulated and require authorization 
under section 202(e) of the Federal Power Act (FPA) (16 U.S.C. 
824a(e)). In addition, the construction, operation, maintenance, and 
connection of facilities at the international border of the United 
States for the transmission of electric energy between the United 
States and a foreign country is prohibited in the absence of a 
Presidential permit issued pursuant to Executive Order (EO) 10485, as 
amended by EO 12038. Existing electricity export authorizations and 
Presidential permits are not transferable or assignable. However, in 
the event of a proposed voluntary transfer of export authority or 
physical facilities, in accordance with the regulations at 10 CFR 
205.305 and 10 CFR 205.323, the existing holder of an export 
authorization or permit and the transferee(s) are required to file 
joint applications for transfer with DOE that include a statement of 
reasons for the transfer.
    On August 8, 1952, the Federal Power Commission (FPC; the 
predecessor agency of DOE) issued a Presidential

[[Page 24446]]

permit in Docket E-6432 (DOE Presidential Permit PP-16) to Citizens 
Utilities Company (now Citizens Communications Company) for one 2,300-
volt (2.3-kV) electric distribution line that crossed the United States 
border with Mexico in the vicinity of Sondita Avenue, Nogales, Arizona, 
and one 13-kV distribution line that originated at the Grand Avenue 
Plant and crossed the United States border with Mexico 1700 feet east 
of the 2.3-kV facilities.
    On December 29, 1967, the FPC granted a Presidential permit in 
Docket E-7371 (DOE Presidential Permit PP-40) to Citizens Utilities 
Company for a 13.8-kV distribution line crossing the United States 
border with Mexico in the vicinity of Boundary Monument No. 112 in 
Lochiel, Arizona.
    On December 29, 1967, in Docket E-7370, and on February 2, 1970, in 
Docket E-6431, (DOE Docket Nos. EA-40 and EA-16, respectively) the FPC 
authorized Citizens Utilities to export electric energy to Mexico using 
the above cross-border facilities.
    On April 18, 2003, Citizens and UniSource (collectively, the 
``Applicants'') jointly filed applications with DOE to transfer 
Presidential Permits PP-16 and PP-40, as well as electricity export 
authorizations EA-16 and EA-40, from Citizens to a new corporate 
subsidiary of UniSource and currently designated as ``NewCo.'' As a 
result of an asset purchase agreement executed on October 29, 2002, 
Citizens agreed to sell to UniSource all assets (as further described 
in the applications) used by Citizens in connection with or otherwise 
necessary for the conduct of Citizens' electric utility business in 
Arizona. The sale of Citizens electric utility business to NewCo is 
currently pending before the Federal Energy Regulatory Commission 
(FERC; Docket No. EC03-54-000). UniSource owns 99.9% of the issued and 
outstanding common stock of Tucson Electric Power Company and all of 
the issued and outstanding common stock of two direct non-utility 
subsidiaries, Millennium Energy Holdings, Inc. and UniSource Energy 
Development Company.
    In the instant applications, the Applicants request that the 
existing energy limits of 60,000,000 kilowatt-hours (kWh) per year 
using the PP-16 facilities, and 5,000,000 kWh per year using the PP-40 
facilities be removed. The Applicants further note that the 2.3-kV 
facilities currently authorized in Presidential Permit PP-16 were 
removed in the mid-1970's and that the 13-kV line is currently 
maintained only for contingencies and does not serve any load. The 
Applicants state that there will be no physical changes to either of 
the existing permitted facilities.

Procedural Matters

    Any person desiring to become a party to this proceeding or to be 
heard by filing comments or protests to this application should file a 
petition to intervene, comment or protest at the address provided above 
in accordance with Sec. Sec.  385.211 or 385.214 of the FERC's rules of 
practice and procedures (18 CFR 385.211, 385.214). Fifteen copies of 
each petition and protest should be filed with the DOE on or before the 
date listed above.
    Comments on the joint applications to transfer Presidential permits 
and electricity export authorizations from Citizens to NewCo should be 
clearly marked with Dockets EA-279, PP-16-1, or PP-40-1, as 
appropriate. Additional copies are to be filed directly with L. Russell 
Mitten, Esq., VP, General Counsel, Citizens Communications Company, 3 
High Ridge Park, Stamford, CT 06905; Vincent Nitido, Jr., Esq., VP, 
General Counsel, UniSource Energy Corporation, One South Church Ave., 
Suite 100, Tucson, AZ 85701; and Bonnie A. Suchman, Esq., Amie V. 
Colby, Esq., Troutman Sanders LLP, 401 9th Street, NW., Suite 1000, 
Washington, DC 20004.
    Before an electricity export authorization or Presidential permit 
may be issued or amended, the DOE must determine that the proposed 
action will not adversely impact on the reliability of the U.S. 
electric power supply system. In addition, DOE must consider the 
environmental impacts of the proposed action (i.e., granting the 
Presidential permit or electricity export authorization, with any 
conditions and limitations, or denying them) pursuant to the National 
Environmental Policy Act of 1969. DOE also must obtain the concurrence 
of the Secretary of State and the Secretary of Defense before taking 
final action on a Presidential permit application.
    Copies of these applications will be made available, upon request, 
for public inspection and copying at the address provided above or by 
accessing the Fossil Energy Home Page at http://www.fe.doe.gov. Upon 
reaching the Fossil Energy Home page, select ``Electricity 
Regulation,'' and then ``Pending Proceedings'' from the options menus.

    Issued in Washington, DC, on May 1, 2003.
Anthony J. Como,
Deputy Director, Electric Power Regulation, Office of Coal & Power 
Import/Export, Office of Coal & Power Systems, Office of Fossil Energy.
[FR Doc. 03-11313 Filed 5-6-03; 8:45 am]
BILLING CODE 6450-01-P