[Federal Register Volume 69, Number 190 (Friday, October 1, 2004)]
[Notices]
[Pages 58900-58903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-22050]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Parker-Davis Project--Post-2008 Resource Pool

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed procedures and call for applications.

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SUMMARY: The Western Area Power Administration (Western), a Federal 
power marketing agency of the Department of Energy (DOE), is seeking 
comments on proposed procedures and calling for applications from 
preference entities interested in an allocation of Federal power from 
the Parker-Davis Project. Western's Energy Planning and Management 
Program (Program) provides for establishing project-specific resource 
pools and allocating power from these pools to preference contractors. 
Under the Program, Western is proposing allocation criteria for 
comment, and is also seeking applications from entities interested in a 
Federal power resource pool allocation of the long-term marketable 
resource of the Parker-Davis Project (P-DP) that will become available 
October 1, 2008. Preference entities applying for an allocation of 
power must submit formal applications as outlined below.

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DATES: Entities interested in commenting on proposed procedures must 
submit written comments to Western's Desert Southwest Regional Office 
at the address below. Entities applying for an allocation of Western 
power must submit an application to the address below. Western will 
accept written comments and/or applications received on or before 
December 30, 2004. Western reserves the right to not consider any 
comments and/or applications received after this date. Western will 
hold public information forums and public comment forums on the 
proposed procedures and applications.
    The public information forum dates are:
    1. October 25, 2004, 1 p.m., Las Vegas, NV.
    2. October 26, 2004, 1 p.m., Phoenix, AZ.
    3. October 27, 2004, 1 p.m., Ontario, CA.
    Following the public information forums, Western will hold three 
public comment forums. The dates for these forums are as follows:
    1. November 30, 2004, 1 p.m., Las Vegas, NV.
    2. December 1, 2004, 1 p.m., Phoenix, AZ.
    3. December 2, 2004, 1 p.m., Ontario, CA.

ADDRESSES: Submit applications for an allocation of Western power and 
written comments regarding these proposed procedures to Mr. J. Tyler 
Carlson, Regional Manager, Desert Southwest Region, Western Area Power 
Administration, P.O. Box 6457, Phoenix, AZ 85005-6457. You may also fax 
applications or comments to Western at (602) 352-2490 or e-mail them to 
[email protected]. Application forms are available upon request or 
may be accessed at http://www.wapa.gov/dsw/pwrmkt/FRN. Applicants are 
encouraged to use the application form provided at the above Web site.
    The public information and comment forum locations are:
    1. Las Vegas--Las Vegas Tropicana, 3801 Las Vegas Boulevard South, 
Las Vegas, NV.
    2. Phoenix--Western Area Power Administration, Desert Southwest 
Regional Office, 615 South 43rd Ave, Phoenix, AZ.
    3. Ontario--Hilton Ontario Airport, 700 N. Haven Avenue, Ontario, 
CA.

FOR FURTHER INFORMATION CONTACT: Roy Tinsley, Project Manager, Desert 
Southwest Region, Western Area Power Administration, 615 South 43rd 
Ave, Phoenix, AZ 85005, telephone (602) 352-2788, e-mail 
[email protected].
    The current Parker-Davis Project (P-DP) marketing plan and related 
information are available online at http://www.wapa.gov/dsw/pwrmkt. 
Western will also post all public comments from this process on this 
Web site after the close of the comment period.

SUPPLEMENTARY INFORMATION: On October 20, 1995, Western published the 
Final Program Rule for the Program, which became effective on November 
20, 1995 (60 FR 54151, October 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 preference contractors. Western published its 
decision to apply the Program Power Marketing Initiative (PMI) to the 
P-DP on May 5, 2003 (68 FR 23709). This decision created a resource 
pool of approximately 17 megawatts (MW) of summer season capacity and 
13 MW of winter season capacity based on estimates of current P-DP 
hydroelectric resource availability, for allocation to eligible 
preference contractors for 20 years beginning October 1, 2008. 
Traditionally, Western has marketed allocations of firm power to 
eligible preference contractors to encourage the most widespread use, 
following Federal Reclamation Law. Western will make allocations to 
preference contractors under the current P-DP Marketing Plan (49 FR 
50582, 52 FR 7014, 52 FR 28333) and the Program. Western intends to 
carry forward the key principles and criteria of the Marketing Plan and 
the Program, except as modified in this notice.

Proposed Post--2008 Resource Pool Allocation Procedures

    These proposed procedures for the P-DP resource pool address (1) 
eligibility criteria; (2) how Western plans to allocate the resource 
pool to eligible applicants; and (3) the terms and conditions under 
which Western will sell the allocated power.

I. Amount of Pool Resources

    As of October 1, 2008, Western proposes to allocate, as long-term 
firm power to eligible preference contractors, approximately 17 MW of 
summer season capacity and 13 MW of winter season capacity, based on 
estimates of current P-DP hydroelectric resource availability. Firm 
power means capacity and associated energy allocated by Western and 
subject to the terms and conditions specified in the Western P-DP 
electric service contract. The associated energy will equal 3,441 
kilowatt hours per kilowatt (kWh/kW) in summer and 1,703 kWh/kW in 
winter, based on current marketing plan criteria. This new resource 
pool includes 0.869 MW of summer withdrawable capacity and 0.619 MW of 
winter withdrawable capacity. Withdrawable power is power reserved for 
United States priority use, but not presently needed. Priority use 
power is capacity and energy required for the development and operation 
of Bureau of Reclamation (Reclamation) projects as required by 
legislation and irrigation pumping on certain Indian lands. When 
priority-use power is requested, Western will substantiate that the 
power to be withdrawn will be used for the purposes specified in the 
Conformed Criteria (49 FR 50586) and then, upon a 2-year written 
advance notice, Western may withdraw the necessary amount of power on a 
pro-rata basis (52 FR 28336).

II. General Eligibility Criteria

    Western proposes to apply the following general eligibility 
criteria to applicants seeking a firm power allocation under the 
proposed Post-2008 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. First consideration will be given to qualified applicants in the 
P-DP marketing area who do not have a contract with Western for Federal 
power resources or are not a member of a parent entity that has a 
contract with Western for Federal power resources.
    C. Qualified applicants, except Native American tribes, must be 
ready, willing, and able to receive and distribute or use power from 
Western. Ready, willing, and able means that the potential customer has 
the facilities needed for the receipt of power or has made the 
necessary arrangements for transmission and/or distribution service; 
and the potential customer's power supply contracts with third parties 
permit the delivery of Western's power (60 FR 54173). End users must 
have the necessary arrangements for transmission and/or distribution 
service in place by April 1, 2008.
    D. Qualified applicants that desire to purchase power from Western 
for resale to consumers, including cooperatives, municipalities, public 
utility districts, and public power districts must have utility status 
by October 1, 2005; and must have the necessary arrangements for 
transmission and/or distribution service in place by April 1, 2008. 
Native American tribes are not subject to this

[[Page 58902]]

requirement. Utility status means the applicant 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 for 
resale to retail customers.
    E. 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-2008 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 may begin service 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 will be allocated under these procedures to qualified 
applicants following preference provisions of section 9(c) of the 
Reclamation Project Act of 1939, in the following order of priority:
    1. Preference entities in the P-DP marketing area that do not have 
a contract with Western for Federal power resources or are not a member 
of a parent entity that has a contract with Western for Federal power 
resources.
    2. Preference entities in the P-DP marketing area that have a 
contract with Western for Federal power resources or are a member of a 
parent entity that has a contract with Western for Federal power 
resources.
    3. Preference entities in adjacent Federal marketing areas that do 
not have a contract with Western for Federal power resources or are not 
a member of a parent entity that has a contract with Western for 
Federal power resources.
    D. The P-DP marketing area includes:
     All of the drainage area considered tributary to the 
Colorado River below a point 1 mile downstream from the mouth of the 
Paria River (Lee's Ferry).
     The State of Arizona, excluding that portion lying in the 
Upper Colorado River Basin, except for that portion of the Upper 
Colorado River Basin in which the Navajo Generating Station is located. 
The Navajo Generating Station is included in the power marketing area 
as a resource only.
     That portion of the State of New Mexico lying in the Lower 
Colorado River Basin and the independent Quemada Basin lying north of 
the San Francisco River drainage area.
     Those portions of the State of California lying in the 
Lower Colorado River Basin and in drainage basins of all streams 
draining into the Pacific Ocean south of Calleguas Creek.
     Those parts of the States of California and Nevada in the 
Lahontan Basin including and lying south of the drainages of Mono Lake, 
Adobe Meadows, Owens Lake, Amargosa River, Dry Lakes, and all closed 
independent basins or other areas in southern Arizona not tributary to 
the Colorado River.
    For a map of the P-DP marketing area, visit Western's Web site at 
http://www.wapa.gov/dsw/pwrmkt.
    E. Western will base allocations made to qualified applicants on 
the actual loads experienced in calendar year 2003 and will apply 
current marketing plan criteria and Program criteria to these loads, 
except as stated in this notice.
    F. Western will base allocations made to Native American tribes on 
the actual load experienced in calendar year 2003. Western has the 
right to use estimated load values should actual load data not be 
available. Western will review and adjust, where necessary, inaccurate 
estimates received during the allocation process.
    G. New contractors must execute electric service contracts within 6 
months of receiving a contract offer from Western, unless Western 
agrees otherwise in writing.
    H. The resource pool will be dissolved subsequent to the closing 
date for executing firm power contracts. Firm power not under contract 
by the closing date will be used as determined by Western.
    I. The minimum allocation shall be 1,000 kW.
    J. 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-2008 Resource Pool Allocation Procedures.
    A. Western reserves the right to reduce the withdrawable portion of 
a contractor's contract rate of delivery, upon 2 years' notice of a 
request by Reclamation for additional energy needed to serve project 
pumping requirements.
    B. Western, at its discretion and sole determination, reserves the 
right to adjust the contract rate of delivery on 5 years' written 
notice in response to changes in hydrology and river operations. Such 
adjustments will only take place after Western conducts a public 
process.
    C. Each contractor is ultimately responsible for arranging third-
party delivery. Western may assist new contractors in obtaining third-
party transmission arrangements for delivery of firm power allocated 
under these contracts.
    D. No contractor shall sell for profit any of the capacity and 
energy allocated to it to any customer of the contractor for resale by 
that customer (49 FR 50585).
    E. Contracts entered into under the Post-2008 Resource Pool 
Allocation Procedures will provide for Western to furnish firm electric 
service effective from October 1, 2008, through September 30, 2028.
    F. Contractors will be required to pay in advance for their firm 
electric service.
    G. To the extent existing contractors' allocations are reduced to 
create the resource pool, new contractors will be required to reimburse 
existing contractors for undepreciated replacement advances.
    H. Contracts entered into as a result of the proposed procedures 
will incorporate Western's standard provisions for power sales 
contracts, integrated resource planning, and the general power contract 
provisions.

V. Applications for Firm Power

    This notice formally requests applications from qualified entities 
wishing to purchase power from the Desert Southwest Region. Western is 
requesting Applicant Profile Data (APD) to provide a uniform basis for 
evaluating applications. To be considered, qualified entities must 
submit an application to the Desert Southwest Region as requested 
below. To ensure full consideration for all applicants, Western will 
not consider applications submitted before publication of this notice 
or after the deadline specified in the DATES section. Application forms 
are available upon request or may be accessed at http://www.wapa.gov/dsw/pwrmkt/FRN. Western encourages applicants 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. Applicants 
should submit requested information in the sequence listed. Applicants 
must provide all requested information, or the

[[Page 58903]]

most reasonable available estimate, or should indicate ``not 
applicable'' if they have no information they wish to be considered for 
a requested item. 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 entity 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 distribution system.
    d. Parent organization of applicant, if any.
    e. Name of members or suballottees, if any.
    f. Applicable law under which the organization was established.
    g. Taxpayer Identification Number (TIN).
    h. Applicant's geographic service area: If available, submit a map 
of the service area, and indicate the date prepared.
    2. Loads:
    a. All Applicants:
    I. If applicable, number and type of customers served in calendar 
year 2003; 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 2003.
    III. For Native American tribe applicants, 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 P-DP system or a third party's system and the required 
service voltage.
    b. Transmission arrangements: Describe the applicant's transmission 
arrangements necessary to deliver firm power to the requested points of 
delivery beyond Western's P-DP system. 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. Upon receiving the APD, Western will verify that the applicant 
meets the general eligibility criteria in Section II, and that the 
application contains all items requested in the APD.
    a. Western may request in writing additional information from any 
applicant whose APD is determined to be deficient. The applicant will 
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 criteria, Western will send a letter explaining why the 
applicant did not qualify.
    c. If the applicant has met the eligibility criteria, Western, 
through the public process, will determine the amount of firm power, if 
any, to allocate in accordance with the general allocation criteria in 
Section III. Western will send a draft contract to the applicant that 
identifies the terms and conditions of the offer and the amount of firm 
power allocated to the applicant.

VI. Regulatory Flexibility Analysis

    The Regulatory Flexibility Act of 1980 (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 that 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 has determined that 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 Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget is required.

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: September 16, 2004.
Michael S. Hacskaylo,
Administrator.
[FR Doc. 04-22050 Filed 9-30-04; 8:45 am]
BILLING CODE 6450-01-P