[Federal Register Volume 72, Number 132 (Wednesday, July 11, 2007)]
[Notices]
[Pages 37759-37760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-13417]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Consideration of Certain Public Utility Regulatory Policies Act 
Standards Set Forth in the Energy Policy Act of 2005

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of determination.

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SUMMARY: As a non-regulated electric utility, the Western Area Power 
Administration (Western) must consider and determine whether to 
implement certain standards under the Energy Policy Act of 2005 (EPAct 
of 2005), which amended the Public Utility Regulatory Policies Act of 
1978 (PURPA). Western considered five standards: Net metering, fuel 
source diversity, fossil fuel generation efficiency, smart metering, 
and consumer interconnections. After considering the comments received, 
Western will not adopt the EPAct of 2005 standards for PURPA at this 
time.

DATES: The decision to not adopt these standards is effective August 
10, 2007.

FOR FURTHER INFORMATION CONTACT: Deborah K. Emler, Desert Southwest 
Region, Federal Power Programs Manager, 615 S. 43rd Avenue, P.O. Box 
6457, Phoenix, AZ 85005-6457, or by telephone (602) 605-2555, or e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: Western, as a non-regulated electric 
utility, is subject to Title XII, Subtitle E of the Energy Policy Act 
of 2005 and is required to consider the implementation of certain PURPA 
standards.
    Western was established on December 21, 1977, under the Department 
of Energy Organization Act of 1977 (DOE Act). The DOE Act transferred 
to Western the power marketing functions of the Bureau of Reclamation 
(Reclamation), including the construction, operation, and maintenance 
of transmission lines and attendant activities.
    Western sells power to cooperatives, municipalities, public utility 
districts, private utilities, Federal and State Agencies, Indian 
tribes, water systems and irrigation districts. Electric power marketed 
by Western is generated by the hydroelectric resources of Reclamation, 
the Corps of Engineers, and the International Boundary and Water 
Commission. Additionally, Western markets the United States' 
entitlement from the large Navajo coal-fired plant near Page, Arizona.
    Western's transmission system, totaling approximately 17,000 line 
miles with over 290 substations, includes several project-specific 
systems, some of which are interconnected with one another. There are 
also numerous interconnections between Western's systems and other 
systems. Geographically, Western's transmission systems operate in 15 
states that are generally west of the Mississippi River.
    Western's obligations to its customers are contractually 
established. Customer requirements in excess of the power and energy 
available from Western must be obtained by the customer from other 
sources.
    The major projects from which Western markets power include the

[[Page 37760]]

Boulder Canyon Project, Central Arizona Project, Central Valley 
Project, Colorado River Storage Project, Colorado River Basin Project, 
Falcon-Amistad Project, Parker-Davis Project, and the Pick-Sloan 
Missouri Basin Program. Each of these projects is a separate entity 
with its own geographic area, power marketing criteria, revenue 
requirements, and power and energy rates. Consideration of the PURPA 
standards was on a Western-wide basis, as opposed to a project-by-
project or system-by-system basis.
    A brochure entitled ``Preconsideration of Sections 1251, 1252, and 
1254 of the Energy Policy Act of 2005'' was prepared and made available 
for public review in September 2006, and posted at http://www.wapa.gov/dsw/pwrmkt/PURPA/. A public hearing was held on October 26, 2006, at 
Western's Corporate Service Office in Lakewood, CO, and written 
comments on Western's consideration of the standards were received 
through November 10, 2006. In addition to the publication of this 
notice, Western's final action will also be made available to the 
public at http://www.wapa.gov/dsw/pwrmkt/PURPA/.

Response to Comments

    Western received comments from three entities within the comment 
period. Two entities supported Western's initial preconsideration to 
forego the implementation of the PURPA standards. A third entity 
expressed a similar agreement with Western's initial assessment 
regarding fossil fuel generation efficiency standards, (Section 
1251(a)(13)), and smart metering, (Section 1252(a)(14)). However, the 
same entity did express several other concerns.
    1. An objection was raised regarding Western's assertion that there 
was no need for action in response to the net metering standard, 
(Section 1251(a)(11)). The entity requested a guarantee of net metering 
services, as opposed to being covered by a broad categorization of 
Western's primary customers. This commenter represents a group of 
Federal agencies that are end users of electricity and are not 
utilities. Applying a net metering standard to a customer served by 
multiple power suppliers presents unique challenges. Western currently 
has an ongoing metering issue with a Federal agency customer regarding 
a renewable energy system that has proven quite difficult to resolve. 
Western believes that these situations are better dealt with on a case-
by-case basis. Western prefers to establish policy on an agency-wide 
basis and not by exception for a narrow segment of our customer base. 
However, Western commits to work with its end use customers in a 
targeted and focused manner to provide assistance in implementing net 
metering services.
    2. In the case of fuel sources, (Section 1251(a)(12)), Western was 
asked to adopt this standard on a contingent basis. The thought was 
that if Western's mission changes over the next decade in response to 
increased demand, the diversification standard would become relevant 
and should be held as a contingent standard to cover that possibility.
    Western does not own generation and predominately markets 
hydroelectric power. Western sees no value in adopting a diverse fuel 
source standard when Congress has not given us authority to generate 
power. If Congress authorizes Western to own generating resources at 
some point in the future, Western will consider implementing a fuel 
source diversity standard at that time.
    3. Regarding interconnection (Section 1254(a)(15)), one commenter 
indicated substantial interest in energy conservation and was 
interested in preserving a requirement through the proposed standard 
that Western aid them, as a retail customer, in adopting energy 
conservation measures, such as interconnection service to on-site 
generation facilities.
    Western is primarily a bulk wholesale electric provider that 
provides a very limited amount of energy to end-use loads. Western's 
power is marketed by individual projects primarily to preference 
customers, most of which are electric utilities. These electric 
utilities in turn blend the Federal hydropower resource into their 
resource base and sell it to their retail customers. Those preference 
customers would principally be responsible for interconnection service 
``to the local distribution facilities'', as opposed to Western.
    Western's facilities are primarily bulk transmission system 
facilities. Western's policies and procedures for interconnections to 
its power system are set forth in Western's Open Access Transmission 
Tariff which is on file with the Federal Energy Regulatory Commission. 
These policies and procedures will be used to manage all 
interconnection requests that Western receives. Western commits to work 
with its end use customers as needed on a case-by-case basis to address 
consumer interconnection issues.
    4. One entity indicated that its interests were not represented by 
the general treatment that has been given to Western's customer base in 
considering the proposed standards. This commenter stated that the 
customer had substantial and ongoing renewable energy and energy 
conservation programs that would be positively impacted by the adoption 
of the PURPA standards. The guarantees provided under those standards 
are essential to planning and the viability of renewable energy and 
conservation programs.
    For the reasons already expressed in response to comments on the 
net metering and consumer interconnection standards, Western prefers to 
establish policy on an agency-wide basis and not by exception for a 
narrow segment of our customer base. Western intends to support ongoing 
customer renewable energy and energy conservation in a targeted manner 
on a case-by-case basis.

Environmental Compliance

    In compliance with the National Environmental Policy Act of 1969 
(NEPA) (42 U.S.C. 4321, et seq.); the Council on Environmental Quality 
Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE 
NEPA Implementing Procedures and Guidelines (10 CFR part 1021), Western 
has determined this action is categorically excluded from preparing an 
environmental assessment or an environmental impact statement.

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.

    Dated: June 29, 2007.
Timothy J. Meeks,
Administrator.
 [FR Doc. E7-13417 Filed 7-10-07; 8:45 am]
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